Boston Properties Provides Business Update
Signs New, 400,000 Square-Foot Lease with Microsoft in
Reports May Office Tenant Collections of 97%;
Provides Industry-Leading Health Security Plan for Repopulating the Workplace
Independent Survey Reveals the Office as the Preferred Workplace vs. Work from Home
- Leasing productivity: In the months of April and May the Company signed approximately 870,000 square feet of new leases and renewals including a new 12-year lease with Microsoft Corporation for approximately 400,000 square feet at
Reston Town Centerin Reston, Virginia. This new lease builds on Microsoft’s existing presence of approximately 165,000 square feet in Reston. Microsoft joins several other companies including Facebook, Leidos, Bechtel and CACI that have recently chosen BXP’s Reston Town Centeras their location of choice for attracting talent and growing their workforce in the region.
- Ongoing strength in collections: For the month of May, the Company collected more than 97% of its total rent payments from office tenants due
May 1. Rent collections from all tenants, including retail, were 93% in total.
- A fortified balance sheet: The Company continues to maintain a strong liquidity position with
$3.3 billionof total liquidity consisting of $1.7 billionof cash, $151 millionof cash held in 1031 exchange escrow, as well as $1.5 billionavailable under its unsecured revolving credit facility as of May 5, 2020. This includes the net cash proceeds from the Company’s recent issuance of $1.25 billionof 3.250% unsecured senior notes.
- A Heath Security Plan for repopulating the workplace: The plan was developed by BXP’s
Heath Security Task Forceand provides a framework for health security at BXP’s office properties, including enhanced cleaning and disinfection, air and water quality protocols, physical distancing, screening and personal protective equipment (PPE) requirements. Since the release of the Plan in early May, the Company has conducted town halls and one-on-one sessions across BXP’s regions to support tenants’ office repopulation process which has started in Massachusettsthis week.
The Company also pointed to a recent survey of 2,300
The results of the survey are consistent with the sentiment
“Companies and their employees recognize the importance of the office as the preferred workplace for collaboration, creativity, mentorship, productivity and creating culture. This is particularly important for sectors that rely on knowledge workers for innovation, long-term competitiveness and growth,” said
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. These statements are based on our current expectations of future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond Boston Properties’ control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions or restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the
AT THE COMPANY
Executive Vice President & CFO
Vice President, Investor Relations