Shareholders of Office rental company BXP must endure in the short term in the hope of long-term profit.
The developer reduced his dividend by 30 percent to help pay for an office tower of $ 2 billion out of 343 Madison Avenue, Crain’s, Crain reported. The dividend drops from 98 cents per share to 70 cents per share. The move is expected to keep $ 50 million in the BXP treasury every quarter.
“If you launch something like 343, our needs for capital are greater and $ 50 million per quarter are very important,” said BXP Chief Executive Officer Owen Thomas at an investor conference.
BXP’s development of 1 million square foot connected to the Grand Central Terminal-de site of the former headquarters of the Metropolitan Transportation Authority-Nam this summer when Norges Bank withdrew a plan to become a 45 percent partner in the project.
BXP is looking for a partner to collect no less than half of the development costs, which, according to Thomas, would help a $ 1 billion construction loan. The CEO added that the costs of BXP could fall to $ 500 million under that scenario.
Without a partner, however, BXP seems ready to do it alone when financing 343 Madison. The company wants to pick up $ 1 billion by selling land and office homes at locations in the suburbs.
BXP has launched vertical construction on the site. It also agreed with a declaration of intent with a tenant for 30 percent of the leasable square meters of the building.
On Monday, the BXP shares fell by 1 percent to $ 76 per share. That is a third under the pre-Pandemic value of the share.
– Holden Walter-Warner
Read more
BXP, CBRE accused of negligence in a lawsuit
Suddenly developers want to build trophy offices again
SLE Green Koop Brooks Brothers Site for the next large office development
#BXP #slides #dividend #finance #Madison #Project