However, Standard & Poor's added, "These strengths are tempered by an opportunistic growth appetite, modest development risk, and the ongoing capital requirements of office properties."
In affirming its BBB+ ratings, Standard & Poor's also noted Equity Office Properties' portfolio's average remaining lease term is more than six years. Cash flow should be stable, Standard & Poor's added, thanks to "the generally high-quality tenant profile." It did add, however, that Equity Office Properties' buildings require more capital improvements than most.
Equity Office Properties has nearly 100 million sf in 380 buildings. It has acquired the portfolios of Beacon Properties, Wright Runstad and Cornerstone Properties since 1997. Standard & Poor's said the company's stable outlook assumes it maintains a "temperate" approach to new acquisitions.
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