Two Office REITs Post Higher Earnings

Boston Properties Inc. and SL Green Realty Corp. reported stronger-than-expected quarterly earnings, a sign that the nation's largest office landlords have been able to boost revenue despite tepid job growth.

Boston Properties, which owns office buildings in New York, San Francisco and Boston, reported late Tuesday that fourth-quarter funds from operations, a key profit metric, was $1.21 a share, two cents higher than analysts projected.

Meantime, SL Green, Manhattan's largest office-building owner, reported late Monday that funds from operations rose to $1.02 a share in the fourth quarter, up from 97 cents in the same period last year and $1.01 in the third quarter. Analysts had projected per-share funds from operations of $1 for the fourth quarter.

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What will investors abandon next?

Reason to Pull REITs from the Wreckage


What will investors abandon next? The first bout of jitters in July hit stocks. Then gold took its licks. The latest target: companies that own government-backed mortgages.

After holding up well through the summer, many mortgage real-estate investment trusts have fallen at least 15% in the last month. Such REITs tend to perform better when investors flee risky assets because they invest exclusively in government-agency-guaranteed mortgages. But Capstead Mortgage Corp. and CYS Investments now have valuations below 90% of book value, the lowest in over a year, ...

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