Leading office REIT Boston Properties (NYSE: BXP) had also sold several properties in recent years to bolster its financial position. As a result, the company ended the second quarter with $1.9 billion of cash to go with $1.5 billion available on its credit facility. To put that into perspective, it's enough liquidity "to redeem our consolidated debt maturities through early 2022 and fund our entire $1.1 billion of remaining development costs in our pipeline," according to comments by CFO Mike LaBelle on the second-quarter conference call. However, given that Boston Properties has one of the highest credit ratings in the office sector, it can easily refinance that debt and fund a portion of its development spending with new borrowings.
Because of that, it has a nice cash war chest to go shopping if the right acquisition opportunity emerges. CEO Owen Thomas noted on the second-quarter call that the company is already looking for: "value-added investment opportunities where we can utilize our real estate operating platform to create value. These investments are primarily being pursued with private equity partners." By working with partners, the company can leverage its capital to capture more opportunities without stretching its balance sheet or selling more stock when the value is low, given that its shares sold off by about 40% on the year on work-from-home fears.