Boston properties profit up 39%

BOSTON (Bloomberg) — Boston Properties Inc., the second-largest office real estate investment trust, said fourth- quarter earnings rose a greater-than-expected 39 percent helped by higher rental revenue and occupancy rates. Boston Properties’ funds from operations increased to $71.9 million, or 85 cents a share, from $51.6 million, or 74 cents, in the year-earlier period. Revenue at the Boston-based developer, headed by the real estate and publishing executive Mortimer Zuckerman, rose to $228.5 million from $205.1 million. For the past five years, office property owners have benefited from steadily declining vacancies as a growing economy pushed the unemployment rate to its lowest rate in a generation. The stock market’s slump last year, though, has caused many companies to rein in their growth plans, and many analysts are looking for more subdued rent increases this year. Boston Properties’ occupancy rate was 98.9 percent at the end of December, up from 98.5 percent in September and 97.1 percent at the end of 1999.