Why I'm Waiting to Buy This Office REIT
Office real estate investment trusts (REITs) made a huge comeback in 2021 after being crushed in 2020 with the onset of the pandemic. However, the newest variant of the coronavirus, omicron, is fueling further uncertainty in the market and disrupting the positive sentiment for the future of office space. This is precisely why I'm waiting to buy Boston Properties (NYSE: BXP).
Boston Properties leases high-end office space in six of the largest metropolitan markets in the U.S. -- Boston, Los Angeles, San Francisco, Seattle, New York, and the greater Washington, D.C. area. In total, the company owns 202 properties, leasing the space to a diverse range of tenants, including tech companies like Salesforce, Google, Microsoft, life science businesses, and co-working office operator WeWork, among many others.
The company is nearing pre-pandemic performance in terms of its funds from operations (FFO), with a gain of 5.4% in Q3 2021 from Q3 2019. However revenue was down 1.8% from Q3 2019, and net income per share was little changed at $0.69 per share, versus $0.70 in the 2019 period.
Source Fool.com
