WASHINGTON, DC-Analysts at the Service Employees International Union's information service says Boston Properties' stock of undeveloped properties has grown at an unusually rapid pace. The REIT's “land bank” is unlikely to decrease due to ramifications of the sagging economy and lawsuits in Massachusetts and Maryland.

Boston Properties' undeveloped land increased by 45% over the last 18 months, but its developed and under construction properties increased by only 23% during the same period. “Their land bank is starting to grow at a faster rate than the rest of their assets,” explains SEIU Researcher Martin Thomas. “A [land bank] buildup typically causes a drag on a REIT's resources – they make an investment acquiring land and pay property taxes, but they're getting little or no income.” The company's core markets are Boston, Washington, DC, Midtown Manhattan and San Francisco.

The report–based on a recent Boston Properties Securities and Exchange Commission filing–comes from SEIU-sponsored Boston Properties Watch, an information service that provides news on the Massachusetts-based REIT to shareholders, tenants and relevant officials; it operates independently of Boston Properties. “We think it's important for investors to know that they're accumulating a lot of land on which they're not making any profit,” Thomas says. “It could have an impact on dividends or on their profits.”