Boston Properties Inc., the biggest US office landlord by market value, said fourth-quarter earnings fell as the company wrote down the value of investments in joint ventures.
Funds from operations, a cash flow measure used by real estate investment trusts, fell to $5.9 million, or 5 cents a share, from $147.5 million, or $1.22, a year ago, the company said in a statement distributed today by Business Wire. Boston Properties had a net loss of $91.6 million, or 76 cents, compared with profit of $123.8 million, or $1.02, a year ago.
Chairman Mortimer Zuckerman, 71, said yesterday in an interview that the recession and credit crisis will make for “a much tougher 2009 than many people are expecting.”
“Almost all tenants have moved to the sidelines,” he said. They’re afraid to make a commitment, because they’ve lost confidence in the future of the economy.”
Funds from operations is net income excluding depreciation and certain one-time items, including property dispositions, and doesn’t conform with generally accepted accounting principles.
Boston Properties rose $3.44, or 7.8 percent, to close at $47.29 in New York Stock Exchange composite trading. The shares have declined 14 percent this year, compared with a 14 percent drop in the 14-member Bloomberg REIT Office Property Index.
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Tuesday, February 24, 2009
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