REIT Results Reflect Changing Market

BOSTON-Some of the largest office REITs in the nation are continuing to report higher FFO and generally positive results in the changing economy. But, the rate of growth is relatively flat, according to their newest quarterly reports.

GlobeSt.com looked at Boston Properties Inc., Alexandria Real Estate Equities Inc. and Douglas Emmett, all among the largest office REITs in the country. The common thread is the uncertain capital markets hasn’t kept the trio from buying, selling and developing.

At Boston Properties, which owns 139 properties totaling about 43.9 million sf, Q1 FFO crept up only one penny per share to $1.11 in comparison with FFO of $1.10 for first quarter 2007. Total FFO rose $1.7 million to $134.7 million on a year-to-year basis. The REIT’s net income for the latest quarter showed a dramatic decline from the net income of last year’s first quarter–down to $88.5 million from last year’s $854.3 million–but that was because last year’s net income jumped on the basis of one-time gains on sales of 5 Times Square for $1.2 billion and the Long Wharf Marriott hotel for $231 million, respectively.