REIT Firm Boston Properties Divests 45% Stake In Two Massachusetts Properties For $1.66B
Portfolio Pulse from Lekha Gupta
Boston Properties Inc (BXP) has sold a 45% stake in two life sciences development properties in Cambridge, Massachusetts, to Norges Bank Investment Management for approximately $1.66 billion. BXP retains a 55% interest and will continue to provide development, property management, and leasing services. The deal will reduce BXP's future development spend by about $533.5 million. BXP recently reported a Q3 FFO per share of $1.86 and sales of $824.28 million, surpassing consensus estimates. BXP shares have risen 10.6% to $56.67.
November 14, 2023 | 5:45 pm
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POSITIVE IMPACT
Boston Properties sold a 45% stake in two properties for $1.66B, retains 55% interest, and will manage the properties. The deal reduces future development costs and follows a strong Q3 report. Shares have increased by 10.6%.
The sale of a significant stake in valuable real estate assets is positive, as it provides liquidity and reduces future capital expenditure. The retention of a majority stake and management role ensures ongoing revenue. The positive Q3 results and the immediate stock price increase suggest a favorable market reaction, likely to persist in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100