Boston Properties focuses on '24-hour cities'
Real estate has been a safe haven for many refugees of the stock market in the last few years, and a happy sequel was released in 2005.
Although many of the prominent real estate development, management, and investment companies in Massachusetts are private, some are public. And five were represented in Globe 100 listings for last year.
Boston Properties Inc. -- you're on their turf when you shop at the Prudential Center -- was the best performing real estate firm in the rankings, at number 31. Its profit margin increased almost 50 percent from 2004.
Michael R. Walsh, senior vice president, finance, for Boston Properties said that profit to shareholders, also called net income, rose to $438 million. ''It was mostly due to asset sales" in Baltimore and Richmond, timed to benefit from the hot investment market in real estate, Walsh said.
Rather than trying to be a landlord throughout the eastern seaboard, Walsh said, Boston Properties is concentrating on ''24-hour cities where people want to live, work, and play," particularly Boston, New York, San Francisco, and Washington, D.C.
Newton's Hospitality Properties Trust, number 55 on The Globe 100 list, increased revenue 29.3 percent. The hotel owner, which operates in 38 states, bought 13 new hotels to bring its portfolio to 298 by the end of last year. ''Industry conditions for lodging picked up nicely" as the economy and travel grew generally, HPT president John G. Murray said, and HPT and many other hotel operators increased revenue per available room.
David I. Begelfer, chief executive of the regional branch of the National Association of Industrial and Office Properties, a trade association and lobbying group, said companies like Boston Properties and HPT reflect two broad trends driving increased profits in the real estate sector. ''Some of these companies have been selling off properties for very substantial profits, and there are increasing rents," Begelfer said. ''These have combined to give great performances."
Two formerly related companies, HRPT Properties Trust and Senior Housing Properties Trust, also performed well and were among the top 100, at 64 and 94, respectively.
At number 58 was New England Realty Associates, a company controlled by longtime Boston landlord Harold Brown. Most of Brown's two dozen residential and commercial real estate companies are private -- but this one isn't.
New England Realty Associates, whose profits more than doubled in 2005, is a limited partnership that Brown bought in bankruptcy years ago. A company he owns continues to operate it as managing partner, and he said its holdings constitute about 40 percent of the real estate he oversees.
''The reason for the upsurge is that we did have some projects in process, mainly some new construction of condominiums or condo conversions," said Brown. ''They came on line, and we had some very good sales performance." New England Realty has about 2,500 apartments and 1.5 million square feet of commercial space.
Heritage Property Investment Trust Inc. of Boston, which owns and redevelops neighborhood and community shopping centers, was number 98 for 2005.
Thomas C. Palmer Jr. can be reached at tpalmer@globe.com. 