Jan 28 (Reuters) - Real estate investment trust BXP BXP.N forecast full-year funds from operations (FFO) below Wall Street estimates on Tuesday, indicating that high mortgage rates are pressuring office space demand.
Despite the push for employees to return to the office, the commercial real estate market remains under pressure due to rising interest rates, which have increased financing costs and slowed demand for office spaces.
The largest publicly traded developer of premier workplaces in the United States reported FFO, a key measure of a REIT's performance, at $1.79 per share for the quarter ended Dec. 31, down from $1.82 a year ago
BXP expects its annual FFO to range between $6.77 and $6.95 per share, below estimates of $7.13, according to data compiled by LSEG.
Its revenue rose 3.6% to $858.6 million in the quarter, compared to the same period in the previous year.
(Reporting by Anandita Mehrotra and Nathan Gomes in Bengaluru; Editing by Mohammed Safi Shamsi)
((Anandita.Mehrotra@thomsonreuters.com;))
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