Boston Properties, the owner of Reston Town Center, has taken a hit in earnings since the COVID-19 pandemic impacted the regional economy.
According to a quarterly earnings statement, the real estate owner’s funds from operations were down by 14 percent in the second quarter this year when compared to this time last year. The company earned $236.9 million for the first three months ending on June 30.
Boston Properties CEO Owen Thomas attributed the earnings drop to layoffs, rent concessions with struggling tenants, and dips in parking fees from office tenants that are now working remotely.
Still, the company reported some big wins. Earlier this year and in the thick of the pandemic, Microsoft signed a 400,000-square-foot-lease in Reston Town Center.
It’s unclear how the pandemic will pan out for the company. Rent collections remain high, with collections of 94 percent of rents overall, Thomas said.
“I’m particularly proud of our team’s commitment to serving our customers with the highest level of professionalism that is our standard at Boston Properties,” he said.
He also noted that greater acceptance of part-time work from home may act as a headwind to office demand growth.
“So longterm, we think the product is here to stay. And the question is, who is going to be providing that and who is going to get through this pandemic most successfully?”
Photo by Jay Westcott