Boston Properties in driving seat as share price sizzles.Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. issued a glowing outlook for Boston Properties Boston Properties, Inc. (NYSE: BXP) is a self-managed real estate investment trust (REIT) based in Boston, Massachusetts. Its primary focus is "Class A" office space which it acquires, develops, and manages in the major markets of Boston, New York City, Washington, D.C. , projecting that the REIT's shares will rise to $130 within the next 12 months. The company's stock was trading at $100.07 last week. While the company is well known for its trophy real estate holdings in Manhattan, including the Citigroup Building in Midtown mid·town n. A central portion of a city, between uptown and downtown. midtown Noun US & Canad the centre of a town , Bank of America securities analyst, Mitchell B. Germain, indicated that Boston Properties' income was better poised to grow within its massive Boston portfolio. There, the company has roughly 2 million s/f of space with leases that are expected to expire within the next year and half, a period during which Boston real estate experts say rents in choice buildings could rise to as high as $90 per s/f. Although rental rates for top-flight space in Manhattan are even higher, Boston Properties unfortunately doesn't have much space coming available in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , which is why analysts have paid such careful attention to the potential income of its Boston assets in trying to project the company's performance. Germain said that Boston Properties will have about 600,000 s/f to 700,000 s/f of space to lease in Manhattan in the next four years, space that it has begun to try to already lease in order to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. the city's record rents. That strategy, of course, could backfire if Boston Properties renews a large portion of leases at current rents only to see the market continue to rise in the next few years. "The general feeling is that they don't want to risk having the market fall between then and now, so they want to sign deals for the space," Germain said. "You never know where the market will be tomorrow." The company has a total of 2 million s/f of developable space located on two midtown parcels, sites that could become lucrative additions to Boston Properties' balance sheet once it finds anchor tenants--whose financial commitment to the projects is necessary to make construction economically feasible. The company has been rumored to be a leading target in the trend of acquisitions and privatizations This list of privatizations provides links to notable and/or major privatizations. See also: Privatization. Argentina
See: Real Estate Investment Trust REIT See real estate investment trust (REIT). industry. Germain said that the company has allayed such speculation by focusing heavily on its development pipeline and by diverting profits, including the nearly $2 billion it netted from the recent sales of 5 Times Square and 280 Park Avenue, into dividends to appease ap·pease tr.v. ap·peased, ap·peas·ing, ap·peas·es 1. To bring peace, quiet, or calm to; soothe. 2. To satisfy or relieve: appease one's thirst. 3. investors. "They don't seem to be a company that is gearing up for a sale," Germain said. |
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