SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): OCTOBER 16, 2000 BOSTON PROPERTIES, INC. (Exact name of Registrant as specified in its charter) DELAWARE 1-13087 04-2473675 (State or other jurisdiction (Commission File (I.R.S. employer of incorporation) Number) Identification No.) 800 BOYLSTON STREET BOSTON, MASSACHUSETTS 02199 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (617) 236-3300
ITEM 5. OTHER EVENTS Following the issuance of a press release on October 16, 2000, announcing the Company's results for the third quarter ended September 30, 2000, the Company intends to provide, to certain investors and analysts at their request, supplemental information regarding the Company's operations that is to voluminous for a press release. The Company is attaching this supplementary operating and financial data as Exhibit 99.1 and the press release as Exhibit 99.2 to this Current Report on Form 8-K. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits Exhibit No. - ----------- 99.1 The Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2000. 99.2 The Boston Properties, Inc. press release dated October 16, 2000 for the quarter ended September 30, 2000.
SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Date: October 16, 2000 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde -------------------------------- By: Douglas T. Linde Chief Financial Officer
EXHIBIT 99.1 ================================================================================ BOSTON PROPERTIES, INC. Supplemental Operating and Financial Data for the Quarter Ended September 30, 2000 ================================================================================
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 ==================================================================================================================================== INDEX PAGE PAGE COMPANY BACKGROUND 3 R&D PROPERTIES - LEASE EXPIRATION ROLL OUT 25 INVESTOR INFORMATION 4-5 INDUSTRIAL PROPERTIES - LEASE EXPIRATION ROLL OUT 26 FINANCIAL HIGHLIGHTS 6 GRAND TOTAL - OFFICE, R&D AND INDUSTRIAL PROPERTIES 27 CONSOLIDATED BALANCE SHEETS 7 BOSTON AREA LEASE EXPIRATION ROLL OUT 28 CONSOLIDATED INCOME STATEMENTS 8 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 29 FUNDS FROM OPERATIONS 9 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 30 FINANCIAL RATIOS 10 NEW YORK AREA LEASE EXPIRATION ROLL OUT 31 CAPITAL STRUCTURE 11 PRINCETON AREA LEASE EXPIRATION ROLL OUT 32 DEBT ANALYSIS 12-14 OTHER AREA LEASE EXPIRATION ROLL OUT 33 JOINT VENTURES 15 HOTEL PERFORMANCE 34 PORTFOLIO OVERVIEW - SQUARE FOOTAGE 16 SAME PROPERTY PERFORMANCE 35 PROPERTY LISTING 17-20 "IN-SERVICE" PROPERTY PERFORMANCE 36 TOP 20 TENANTS 21 CAPITAL EXPENDITURES 37 PORTFOLIO OVERVIEW - FFO 22 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 38 OCCUPANCY ANALYSIS 23 VALUE CREATION PIPELINE - DEVELOPMENT 39 OFFICE PROPERTIES - LEASE EXPIRATION ROLL OUT 24 VALUE CREATION PIPELINE - LAND PARCELS 40 ACQUISITION PROPERTY PROFILE 41 ==================================================================================================================================== 2
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 COMPANY BACKGROUND Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of office, industrial and hotel properties. The Company is one of the largest owners and developers of office properties in the United States, concentrated in the Northeast Corridor from Virginia to Greater Boston and in Greater San Francisco. On June 23, 1997, Boston Properties successfully completed its initial public offering. The offering and the underwriters over-allotment option closed on the same date resulting in 36,110,000 shares being sold at $25.00 per share for a total offering of $902,750,000. On January 30,1998, the Company closed a follow-on offering of 23,000,000 shares (including the underwriters' over-allotment) at $35.125 per share for a total offering of $807,875,000. On May 20, 1999, the Company raised an additional $141,002,500, net of issuance costs, through the issuance of 4,000,000 shares. Through its predecessor company founded by Mortimer B. Zuckerman and Edward H. Linde in 1970, the Company grew through the seventies, eighties, and nineties by developing and redeveloping Class A office properties, R&D and industrial properties, and hotels in its primary markets of Greater Boston, Greater Washington, DC, and midtown Manhattan. Since the Company's Initial Offering in June 1997, the Company has acquired 46 properties adding approximately 16.1 million square feet to its portfolio, representing an investment of approximately $3.9 billion, and the Company has delivered 17 development properties adding approximately 2.5 million square feet to its portfolio, representing an investment of approximately $307.9 million. In addition, the Company is developing eighteen office properties for a total anticipated investment of approximately $1.3 billion. The Company owns or controls land where it can develop an additional 13.6 million square feet. 3
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 INVESTOR INFORMATION 800 Boylston Street Boston, MA 02199 (617) 236-3300 (617) 536-5087 (fax) Mortimer B. Zuckerman Chairman of the Board Edward H. Linde President, Chief Executive Officer and Director Robert E. Burke Executive Vice President, Operations Douglas T. Linde Senior Vice President, Chief Financial Officer and Treasurer Elaine M. Quinlan Director of Investor Relations TIMING QUARTERLY RESULTS FOR 2000 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING ANTICIPATED SCHEDULE: YEAR END 2000 WEEK OF JANUARY 22-26 4
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 COMMON STOCK DATA (NYSE:BXP) BOSTON PROPERTIES' COMMON STOCK IS TRADED PRIMARILY ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL: BXP. BXP'S COMMON STOCK HAS HAD THE FOLLOWING CHARACTERISTICS (BASED ON NEW YORK STOCK EXCHANGE CLOSING PRICES): ================================================================================================================================== 3RD QUARTER 2000 3RD QUARTER 1999 ---------------- ---------------- HIGH PRICE $ 43.2500 $ 35.6250 LOW PRICE $ 37.5625 $ 30.3125 CLOSING PRICE $ 42.9375 $ 30.6875 DIVIDENDS PER SHARE - ANNUALIZED $ 2.12 $ 1.80 CLOSING DIVIDEND YIELD - ANNUALIZED 4.94% 5.87% CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 106,278 104,721 CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $ 4,563,312 $ 3,213,626 ================================================================================================================================== 5
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 FINANCIAL HIGHLIGHTS (UNAUDITED AND IN THOUSANDS) ===================================================================================================== THREE MONTHS ENDED --------------------------------------------------- SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 % CHANGE ------------------ ------------------ --------- INCOME ITEMS: Revenues $ 223,313 $ 202,137 10.48% Net Income available to common shareholders $ 36,530 $ 27,418 33.23% Funds from Operations $ 83,124 $ 67,817 22.57% Company's share (74.04% and 74.03%) $ 61,543 $ 50,207 22.58% Funds from Operations per share - basic $ 0.90 $ 0.74 21.62% Funds from Operations per share - diluted $ 0.85 $ 0.72 17.76% Dividends per share $ 0.53 $ 0.45 17.78% RATIOS: Interest Coverage Ratio 2.68 2.50 7.33% Dividend Payout Ratio 62.51% 62.25% 0.42% ===================================================================================================== ===================================================================================================== SEPTEMBER 30, 2000 DECEMBER 31, 1999 % CHANGE ------------------ ----------------- --------- CAPITALIZATION: Total Debt $3,453,135 $3,321,584 3.96% Total Common Shares Outstanding @ Quarter End 69,318 67,910 2.07% Total Preferred Shares Outstanding @ Quarter End (if converted) 2,625 2,625 0.00% Total Common Units Outstanding @ Quarter End 23,965 23,810 0.65% Total Preferred Units Outstanding @ Quarter End (if converted) 10,370 10,376 -0.06% Price @ Quarter End $ 42.9375 $ 31.1250 37.95% Equity Value @ Quarter End $4,563,312 $3,259,441 40.00% Total Market Capitalization $8,016,447 $6,581,025 21.81% Debt/Total Market Capitalization 43.08% 50.47% -14.65% ===================================================================================================== 6
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) =========================================================================================== SEPTEMBER 30, 2000 DECEMBER 31, 1999 ------------------ ----------------- ASSETS (unaudited) Real estate and equipment $ 5,166,892 $ 5,150,341 Development in progress 508,745 332,149 Land held for future development 107,324 126,934 Less accumulated depreciation (554,339) (470,591) ----------- ----------- Total real estate and equipment 5,228,622 5,138,833 Cash and cash equivalents 12,430 12,035 Escrows 29,509 40,254 Investments in securities 14,065 14,460 Tenant and other receivables, net 40,039 28,362 Accrued rental income, net 89,072 82,228 Deferred charges, net 74,743 53,733 Prepaid expenses and other assets 49,519 28,452 Investments in joint ventures 73,118 36,415 ----------- ----------- TOTAL ASSETS $ 5,611,117 $ 5,434,772 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 3,218,135 $ 2,955,584 Unsecured line of credit 235,000 366,000 Accounts payable and accrued expenses 59,542 66,780 Dividends payable 61,217 50,114 Accrued interest payable 5,951 8,486 Other liabilities 60,831 48,282 ----------- ----------- Total liabilities 3,640,676 3,495,246 ----------- ----------- Commitments and contingencies -- -- ----------- ----------- Minority interests 774,365 781,962 ----------- ----------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 ----------- ----------- Stockholders' Equity: Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding -- -- Common stock, $.01 par value, 250,000,000 shares authorized, 69,317,999 and 67,910,434 issued and outstanding, respectively 693 679 Additional paid-in capital 1,112,855 1,067,778 Dividends in excess of earnings (11,879) (10,893) Deferred compensation (901) -- Accumulated other comprehensive loss (4,692) -- ----------- ----------- Total stockholders' equity 1,096,076 1,057,564 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,611,117 $ 5,434,772 =========== =========== =========================================================================================== 7
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 CONSOLIDATED INCOME STATEMENTS (UNAUDITED AND IN THOUSANDS) ========================================================================================================================= THREE MONTHS ENDED ------------------------------------------- 30-SEP-00 30-SEP-99 % CHANGE --------- --------- ---------- Revenue: Rental Base Rent (1) $ 183,749 $ 166,582 10.31% Recoveries from tenants 22,886 19,212 19.12% Parking and other 12,798 11,261 13.65% --------- --------- --------- Total rental revenue 219,433 197,055 11.36% Development and management services 2,693 3,706 -27.33% Interest and other 1,187 1,376 -13.74% --------- --------- --------- Total revenue 223,313 202,137 10.48% --------- --------- --------- Expenses: Rental expenses 68,154 66,665 2.23% General and administrative 9,871 7,383 33.70% Interest (2) 54,752 51,768 5.76% Depreciation and amortization 32,436 31,078 4.37% --------- --------- --------- Total expenses 165,213 156,894 5.30% --------- --------- --------- Income before minority interests and before income from unconsolidated joint ventures 58,100 45,243 28.42% Minority interest in property partnership (245) (179) 36.87% Income from unconsolidated joint ventures 549 206 166.50% --------- --------- --------- Income before preferred distribution and minority interest in Operating Partnership 58,404 45,270 29.01% Preferred distribution (6,605) (6,649) -0.66% Minority interest in Operating Partnership (3) (13,022) (9,599) 35.66% --------- --------- --------- Income before gain (loss) on sales of real estate 38,777 29,022 33.61% Gain (loss) on sales of real estate, net (604) 50 -1308.00% --------- --------- --------- Net income before preferred dividend 38,173 29,072 31.31% Preferred dividend (1,643) (1,654) -0.67% --------- --------- --------- Net income available to common shareholders $ 36,530 $ 27,418 33.23% ========= ========= ========= INCOME PER SHARE OF COMMON STOCK Net income available to common shareholders per share - basic $ 0.53 $ 0.40 32.50% ========= ========= ========= Net income available to common shareholders per share - diluted $ 0.50 $ 0.40 25.00% ========= ========= ========= ========================================================================================================================= (1) Base Rent is reported on a straight-line basis over the terms of the respective leases. The impact of the straight-line rent adjustment increased revenues by $3,587 and $5,296 for the three months ended September 30, 2000 and 1999, respectively. (2) Excludes capitalized interest of $9,869 and $4,499 for the three months ended September 30, 2000 and 1999, respectively. (3) Equals minority interest percent (25.96% and 25,97%, respectively) of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions. 8
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) ================================================================================================================================== THREE MONTHS ENDED ----------------------------------------------- 30-SEP-00 30-SEP-99 % CHANGE ----------------------------------------------- Income from operations before minority interests and before income from unconsolidated joint ventures $ 58,100 $ 45,243 28.42% Add: Real estate depreciation and amortization (1) 33,007 30,882 6.88% Income from unconsolidated joint ventures 549 206 166.50% Less: Minority property partnership's share of funds from operations (284) (211) 34.60% Preferred dividends and distributions (8,248) (8,303) -0.66% -------- -------- ------ Funds from Operations $ 83,124 $ 67,817 22.57% ======== ======== ====== Funds from Operations available to common shareholders (2) $ 61,543 $ 50,207 22.58% ======== ======== ====== Funds from Operations per share - basic $ 0.90 $ 0.74 21.72% ======== ======== ====== Weighted average shares outstanding - basic 68,752 67,901 1.25% ======== ======== ====== Funds from Operations per share - diluted $ 0.85 $ 0.72 18.06% ======== ======== ====== Weighted average shares outstanding - diluted 83,657 81,485 2.67% ======== ======== ====== ================================================================================================================================== RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS ==================================================================================================================================== For the Three Months Ended For the Three Months Ended September 30, 2000 September 30, 1999 ------------------------------------- ----------------------------------- Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ---------- ------------- --------- ----------- ------------- --------- Basic Funds from Operations $83,124 92,860 $ 0.90 $67,817 91,718 $ 0.74 Effect of Dilutive Securities Convertible Preferred Units 6,605 10,370 (0.02) 6,649 10,377 (0.01) Convertible Preferred Stock 1,643 2,625 (0.01) 1,654 2,625 -- Stock Options -- 1,909 (0.02) -- 583 (0.01) ------- ------- -------- ------- ------- -------- Dilutive Funds from Operations (3) $91,372 107,764 $ 0.85 $76,120 105,303 $ 0.72 ======= ======= ======== ======= ======= ======== Company's share of Diluted Funds from Operations $70,931 83,657 $ 0.85 $58,902 81,485 $ 0.72 ======= ======= ======== ======= ======= ======== ==================================================================================================================================== (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,018 and $255, less corporate related depreciation of $447 and $451, for the three months ended September 30, 2000 and 1999, respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2000 and 1999, respectively was 74.04% and 74.03%. (3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2000 and 1999 was 77.63% and 77.38%, respectively. 9
FINANCIAL RATIOS ====================================================================================================== THREE MONTHS ENDED SEPTEMBER 30, 2000 ------------------ RATIOS COMPUTED FOR INDUSTRY COMPARISONS: OPERATIONAL RATIOS (1)(2) Debt Service Coverage Ratio 2.30 (EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal) Interest Coverage Ratio 2.68 (EBITDA + Income from Unconsolidated Joint Venture)/Interest Return on Shareholder's Equity 17.97% (EBITDA - Interest)/Average Equity (book value) (%) Return on Real Estate Investments 10.91% (EBITDA/Average Real Estate Investments (book value)) (%) FFO Payout Ratio 62.35% (Dividends Declared/FFO) (%) ====================================================================================================== (1) EBITDA is equal to earnings before interest, taxes, depreciation and amortization. (2) FFO is calculated based on the NAREIT White Paper. 10
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 CAPITAL STRUCTURE DEBT (IN THOUSANDS) =================================================================================================== AGGREGATE PRINCIPAL SEPTEMBER 30, 2000 ------------------- Mortgage Loans $3,218,135 Unsecured Line of Credit 235,000 ---------- Total Debt $3,453,135 ========== =================================================================================================== EQUITY (IN THOUSANDS) =================================================================================================== COMMON SHARES & UNITS STOCK $ VALUE OUTSTANDING EQUIVALENTS EQUIVALENT(1) -------------- ----------- -------------- Common Stock 69,318 69,318 $2,976,342 Preferred Stock 2,000 2,625 112,711 Operating Partnership Units 23,965 23,965 1,028,997 Preferred Operating Partnership Units 8,707 10,370 445,262 ---------- ---------- Total Equity 106,278 $4,563,312 ========== ========== Total Market Capitalization $8,016,447 ========== =================================================================================================== (1) Value based on September 30, 2000 closing price of $ 42.9375 11
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) =============================================================================================================== YEAR 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL ---- -------- ---- ---- ---- ---- ---------- ----- Amount $ 84,715 $ 191,673 $ 481,321 $625,689 $129,979 $ 1,939,758 $3,453,135 =============================================================================================================== (1) For the period from October 1, 2000 through December 31, 2000. UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003 (IN THOUSANDS) =================================================================================================== OUTSTANDING LETTERS OF REMAINING FACILITY @ 9/30/2000 CREDIT CAPACITY -------- ----------- ---------- ---------- $ 605,000 235,000 45,826 $ 324,174 =================================================================================================== UNSECURED AND SECURED DEBT ANALYSIS =================================================================================================== WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY ------------ ------------ --------------- Unsecured Debt 6.81% 7.64% 2.5 years Secured Debt 93.19% 7.27% 5.5 years ------------ ------------ --------------- Total Debt 100.00% 7.30% 5.3 years ============ ============ =============== =================================================================================================== FLOATING AND FIXED RATE DEBT ANALYSIS =================================================================================================== WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY ------------ ------------ --------------- Floating Rate Debt 18.52% 8.14% 2.0 years Fixed Rate Debt 81.48% 7.11% 6.1 years ------------ ------------ --------------- Total Debt 100.00% 7.30% 5.3 years ============ ============ =============== =================================================================================================== 12
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) ==================================================================================================================================== PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL - ----------------------------------------------- ----------- -------- -------- -------- -------- ---------- -------- Embarcadero Center One, Two and Federal Reserve $ 944 $ 3,936 $ 4,208 $ 4,498 $ 4,808 $295,425 $313,819 Prudential Center 850 3,777 4,039 4,319 4,564 275,226 292,775 The Unsecured Line of Credit -- -- -- 235,000 -- -- 235,000 599 Lexington Avenue -- -- -- -- -- 225,000 225,000 280 Park Avenue 1,467 8,800 209,000 -- -- -- 219,267 5 Times Square -- -- -- 161,199 -- -- 161,199 Embarcadero Center Four 711 2,894 3,097 3,314 3,546 141,663 155,225 875 Third Avenue 598 2,341 148,534 -- -- -- 151,473 Embarcadero Center Three 464 1,941 2,069 2,206 2,351 137,751 146,782 Two Independence Square 489 1,036 1,500 113,840 -- -- 116,865 Riverfront Plaza 575 2,397 2,560 2,735 2,921 105,034 116,222 Democracy Center 254 1,588 1,703 1,828 1,961 100,509 107,843 Embarcadero Center West Tower 304 1,272 1,358 1,449 1,546 91,965 97,894 100 East Pratt Street 387 1,615 1,727 1,847 1,975 84,687 92,238 601 and 651 Gateway Boulevard(2) 75,000 -- -- -- -- -- 75,000 One Independence Square 315 74,114 -- -- -- -- 74,429 Reservoir Place 465 1,978 2,669 2,859 3,062 63,288 74,321 One & Two Reston Overlook 169 709 764 823 65,837 -- 68,302 2300 N Street -- -- -- 66,000 -- -- 66,000 Capital Gallery 175 1,097 1,191 1,293 1,404 52,176 57,336 111 Huntington Avenue -- -- 52,533 -- -- -- 52,533 504,506,508 Carnegie Center 135 846 909 979 1,053 44,585 48,507 10 and 20 Burlington Mall Road -- 37,000 -- -- -- -- 37,000 10 Cambridge Center 113 477 518 563 611 33,534 35,816 1301 New York Avenue 158 1,046 1,129 1,403 1,314 27,783 32,833 ==================================================================================================================================== (1) For the period from October 1, 2000 through December 31, 2000. (2) Subsequent to September 30, 2000, refinanced with $90.0 million loan maturing in October 2010 and bearing interest at a rate equal to 8.40%. 13
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (CONTINUED) (IN THOUSANDS) ==================================================================================================================================== PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL - ---------------------------------------- ----------- ---------- ---------- ---------- ---------- ----------- ----------- New Dominion Technology Park, Building 1 -- 31,883 -- -- -- -- 31,883 Eight Cambridge Center 104 442 477 515 557 26,388 28,483 510 Carnegie Center 65 475 511 550 587 25,576 27,764 Sumner Square -- -- -- -- 26,825 -- 26,825 Lockheed Martin Building 122 529 565 604 640 23,954 26,414 University Place 137 573 615 659 706 22,700 25,390 Orbital Sciences - Phase 1 -- -- 25,207 -- -- -- 25,207 Reston Corporate Center 116 506 540 577 612 22,577 24,928 206 Carnegie Center 30 190 206 223 242 22,109 23,000 191 Spring Street 81 344 374 407 443 21,230 22,879 Bedford Business Park 128 539 587 639 695 19,257 21,845 NIMA Building 101 438 468 499 529 19,563 21,598 214 Carnegie Center 28 173 188 204 221 20,186 21,000 202 Carnegie Center 25 157 170 184 200 18,264 19,000 2600 Tower Oaks Boulevard -- -- 11,218 -- -- -- 11,218 101 Carnegie Center 47 299 322 348 345 7,058 8,419 Montvale Center 22 135 147 160 175 6,947 7,586 Newport Office Park 78 5,923 -- -- -- -- 6,001 Hilltop Business Center 52 164 176 188 201 5,009 5,790 302 Carnegie Center -- -- -- 5,033 -- -- 5,033 Quorum Office Park -- -- -- 4,456 -- -- 4,456 Orbital Sciences - Phase 2 -- -- -- 4,243 -- -- 4,243 201 Carnegie Center 6 39 42 45 48 314 494 ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 84,715 $ 191,673 $ 481,321 $ 625,689 $ 129,979 $1,939,758 $3,453,135 ========== ========== ========== ========== ========== ========== ========== ==================================================================================================================================== (1) For the period from October 1, 2000 through December 31, 2000. 14
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 JOINT VENTURES (UNAUDITED AND IN THOUSANDS) AS OF SEPTEMBER 30, 2000 ==================================================================================================================================== ONE MARKET 140 265 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN SQUARE NORTH SQUARE STREET STREET COMBINED --------- --------- --------- --------- -------- -------- Total Equity (1) $ 1,015 $ 24,430 $ 31,362 $ 5,771 $ 10,540 $ 73,118 ========= ========= ========= ======== ======== ======== Mortgage/Construction loans payable (1) $ 19,348 $ 34,420 $ 71,168 $ 12,540 $ 23,800 $161,276 ========= ========= ========= ======== ======== ======== BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% ========= ========= ========= ======== ======== ==================================================================================================================================== RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 ==================================================================================================================================== ONE MARKET 140 265 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN SQUARE NORTH(2) SQUARE STREET(3) STREET(4) COMBINED -------- -------- --------- --------- -------- -------- REVENUE Total revenue $ 3,806 $ 3,199 $ 5,750 -- $ 585 $13,340 ------- ------- ------- ------- ------- ------- EXPENSES Operating 967 747 1,852 -- 230 3,796 Interest 1,676 964 2,875 -- 285 5,800 Depreciation and amortization 1,045 407 1,039 -- 110 2,601 ------- ------- ------- ------- ------- ------- Total expenses 3,688 2,118 5,766 -- 625 12,197 ------- ------- ------- ------- ------- ------- Net income(loss) $ 118 $ 1,081 $ (16) -- $ (40) $ 1,143 ======= ======= ======= ======= ======= ======= BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% ======= ======= ======= ======= ======= BXP's share of net income(loss) $ 30 $ 541 $ (8) -- $ (14) $ 549 ======= ======= ======= ======= ======= ======= ==================================================================================================================================== (1) Represents the Company's share. (2) Includes the residential component of the joint venture for the period from July 1, 2000 through August 16,2000 (disposition date). (3) Property is currently under development. (4) Represents the operations for the period from September 13, 2000 (acquisition date) through September 30, 2000. 15
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PORTFOLIO OVERVIEW- SQUARE FOOTAGE RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY ================================================================================================================== GEOGRAPHIC AREA OFFICE (1) R&D INDUSTRIAL TOTAL % OF TOTAL --------------- ---------- --- ---------- ----- ---------- Greater Boston 5,750,181(2) 545,206 247,318 6,542,705 25.38% Greater Washington, D.C 5,655,380(3) 1,142,329 237,195 7,034,904 27.28% Greater San Francisco 4,431,743 144,366 280,213 4,856,322 18.84% Midtown Manhattan 2,844,534 -- -- 2,844,534 11.03% Princeton/East Brunswick, NJ 2,278,235 -- -- 2,278,235 8.84% Baltimore, MD 1,171,599 -- -- 1,171,599 4.54% Richmond, VA 894,015 -- -- 894,015 3.47% Bucks County, PA -- -- 161,000 161,000 0.62% ---------- ---------- ---------- ---------- ---------- 23,025,687 1,831,901 925,726 25,783,314 100.00% ========== ========== ========== ========== ========== % of Total 89.30% 7.10% 3.60% 100.00% ================================================================================================================== HOTEL PROPERTIES ================================================================================================================== NUMBER OF SQUARE HOTEL PROPERTIES ROOMS FEET ---------------- ---------- ------- Long Wharf Marriott, Boston, MA 402 420,000 Cambridge Center Marriott, Cambridge, MA 431 330,400 Residence Inn by Marriott, Cambridge, MA 221 187,474 ------- ------- Total Hotel Properties 1,054 937,874 ======= ======= ================================================================================================================== STRUCTURED PARKING ================================================================================================================== NUMBER OF SQUARE SPACES FEET ---------- ------- TOTAL STRUCTURED PARKING 16,854 5,889,221 ====== ========= ================================================================================================================== (1) Includes retail square footage of approximately 1,000,000. (2) Includes 326,714 square feet at 265 Franklin Street which is 35% owned by Boston Properties. (3) Includes 414,296 square feet at One Freedom Square which is 25% owned by Boston Properties and 578,340 square feet at Metropolitan Square which is 51% owned by Boston Properties. 16
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PROPERTY LISTING as of September 30, 2000 ==================================================================================================================================== NUMBER OF SUB MARKET BUILDINGS SQUARE FEET ---------- --------- ----------- GREATER BOSTON OFFICE THE PRUDENTIAL CENTER CBD Boston MA 3 2,149,232 265 FRANKLIN STREET (35% OWNERSHIP) CBD Boston MA 1 326,714 ONE CAMBRIDGE CENTER East Cambridge MA 1 215,385 THREE CAMBRIDGE CENTER East Cambridge MA 1 107,484 EIGHT CAMBRIDGE CENTER East Cambridge MA 1 177,226 TEN CAMBRIDGE CENTER East Cambridge MA 1 152,664 ELEVEN CAMBRIDGE CENTER East Cambridge MA 1 79,616 UNIVERSITY PLACE Mid-Cambridge MA 1 195,282 RESERVOIR PLACE Route 128 Mass Turnpike MA 1 529,991 204 SECOND AVENUE Route 128 Mass Turnpike MA 1 40,974 170 TRACER LANE Route 128 Mass Turnpike MA 1 73,203 WALTHAM OFFICE CENTER Route 128 Mass Turnpike MA 3 131,479 195 WEST STREET Route 128 Mass Turnpike MA 1 63,500 200 WEST STREET Route 128 Mass Turnpike MA 1 248,341 10 & 20 BURLINGTON MALL ROAD Route 128 Northwest MA 2 156,416 BEDFORD BUSINESS PARK Route 128 Northwest MA 1 90,000 32 HARTWELL AVENUE Route 128 Northwest MA 1 69,154 91 HARTWELL AVENUE Route 128 Northwest MA 1 122,135 92 HAYDEN AVENUE Route 128 Northwest MA 1 30,980 100 HAYDEN AVENUE Route 128 Northwest MA 1 55,924 33 HAYDEN AVENUE Route 128 Northwest MA 1 79,564 LEXINGTON OFFICE PARK Route 128 Northwest MA 2 167,293 191 SPRING STREET Route 128 Northwest MA 1 162,700 181 SPRING STREET Route 128 Northwest MA 1 53,595 201 SPRING STREET Route 128 Northwest MA 1 102,500 NEWPORT OFFICE PARK Route 128 South MA 1 168,829 ------------------- --------------------- 32 5,750,181 ------------------- --------------------- RESEARCH & DEVELOPMENT FOURTEEN CAMBRIDGE CENTER East Cambridge MA 1 67,362 BEDFORD BUSINESS PARK Route 128 Northwest MA 2 383,704 17 HARTWELL AVENUE Route 128 Northwest MA 1 30,000 164 LEXINGTON ROAD Route 128 Northwest MA 1 64,140 ------------------- --------------------- 5 545,206 ------------------- --------------------- INDUSTRIAL 25-33 DARTMOUTH ROAD Route 128 Southwest MA 1 78,045 40-46 HARVARD STREET Route 128 Southwest MA 1 169,273 ------------------- --------------------- 2 247,318 ------------------- --------------------- TOTAL GREATER BOSTON, MA AREA: 39 6,542,705 ==================================================================================================================================== ========================================================================================== ANNUALIZED REVENUE PER OCCUPIED % OCCUPIED SF ---------- ----------- GREATER BOSTON OFFICE THE PRUDENTIAL CENTER 99.8% $ 32.94 265 FRANKLIN STREET (35% OWNERSHIP) 100.0% 32.82 ONE CAMBRIDGE CENTER 100.0% 37.86 THREE CAMBRIDGE CENTER 100.0% 28.47 EIGHT CAMBRIDGE CENTER 100.0% 26.87 TEN CAMBRIDGE CENTER 100.0% 33.25 ELEVEN CAMBRIDGE CENTER 100.0% 37.73 UNIVERSITY PLACE 100.0% 31.31 RESERVOIR PLACE 96.1% 31.07 204 SECOND AVENUE 100.0% 26.24 170 TRACER LANE 100.0% 38.32 WALTHAM OFFICE CENTER 100.0% 28.17 195 WEST STREET 100.0% 26.97 200 WEST STREET 98.0% 31.66 10 & 20 BURLINGTON MALL ROAD 99.0% 27.18 BEDFORD BUSINESS PARK 100.0% 20.78 32 HARTWELL AVENUE 100.0% 15.42 91 HARTWELL AVENUE 100.0% 25.23 92 HAYDEN AVENUE 93.1% 26.10 100 HAYDEN AVENUE 100.0% 30.00 33 HAYDEN AVENUE 100.0% 24.47 LEXINGTON OFFICE PARK 100.0% 27.30 191 SPRING STREET 100.0% 27.55 181 SPRING STREET 100.0% 33.03 201 SPRING STREET 100.0% 28.58 NEWPORT OFFICE PARK 100.0% 23.27 ---------------------------------- 99.4% $ 30.91 ---------------------------------- RESEARCH & DEVELOPMENT FOURTEEN CAMBRIDGE CENTER 100.0% 19.23 BEDFORD BUSINESS PARK 79.2% 11.73 17 HARTWELL AVENUE 100.0% 10.00 164 LEXINGTON ROAD 100.0% 9.12 ---------------------------------- 85.3% $ 12.34 ---------------------------------- INDUSTRIAL 25-33 DARTMOUTH ROAD 100.0% 9.84 40-46 HARVARD STREET 89.8% 7.03 ---------------------------------- 93.0% $ 7.98 ---------------------------------- 98.0% ========================================================================================== 17
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PROPERTY LISTING AS OF SEPTEMBER 30, 2000 ==================================================================================================================================== NUMBER OF SUB MARKET BUILDINGS SQUARE FEET ---------- --------- ----------- GREATER WASHINGTON, D.C. OFFICE 2300 N STREET West End Washington DC 1 276,930 ONE INDEPENDENCE SQUARE Southwest Washington DC 1 337,794 TWO INDEPENDENCE SQUARE Southwest Washington DC 1 579,665 CAPITAL GALLERY Southwest Washington DC 1 396,776 500 E STREET, N. W. Southwest Washington DC 1 242,769 METROPOLITAN SQUARE (51% OWNERSHIP) East End Washington DC 1 578,340 1301 NEW YORK AVENUE East End Washington DC 1 168,371 SUMNER SQUARE CBD Washington DC 1 209,507 DECOVERLY TWO Montgomery County MD 1 77,747 DECOVERLY THREE Montgomery County MD 1 77,040 DEMOCRACY CENTER Montgomery County MD 3 680,475 MONTVALE CENTER Montgomery County MD 1 120,815 ORBITAL SCIENCES, BUILDINGS ONE AND THREE Loudoun County 2 174,832 THE ARBORETUM Fairfax County VA 1 95,584 ONE FREEDOM SQUARE (25% OWNERSHIP) Fairfax County VA 1 414,296 ONE RESTON OVERLOOK Fairfax County VA 1 312,685 TWO RESTON OVERLOOK Fairfax County VA 1 131,594 RESTON CORPORATE CENTER Fairfax County VA 2 261,046 LOCKHEED MARTIN BUILDING Fairfax County VA 1 255,244 NIMA BUILDING Fairfax County VA 1 263,870 -------------------------------------- 24 5,655,380 -------------------------------------- RESEARCH & DEVELOPMENT FULLERTON SQUARE Fairfax County VA 2 178,294 SUGARLAND BUSINESS PARK, BUILDING ONE Fairfax County VA 1 52,797 SUGARLAND BUSINESS PARK, BUILDING TWO Fairfax County VA 1 59,215 7435 BOSTON BOULEVARD Fairfax County VA 1 103,557 7451 BOSTON BOULEVARD Fairfax County VA 1 47,001 7450 BOSTON BOULEVARD Fairfax County VA 1 60,827 7374 BOSTON BOULEVARD Fairfax County VA 1 57,321 8000 GRAINGER COURT Fairfax County VA 1 90,465 7500 BOSTON BOULEVARD Fairfax County VA 1 79,971 7501 BOSTON BOULEVARD Fairfax County VA 1 75,756 7601 BOSTON BOULEVARD Fairfax County VA 1 103,750 7600 BOSTON BOULEVARD Fairfax County VA 1 69,832 7375 BOSTON BOULEVARD Fairfax County VA 1 28,780 8000 CORPORATE COURT Fairfax County VA 1 52,539 7700 BOSTON BOULEVARD Fairfax County VA 1 82,224 -------------------------------------- 16 1,142,329 -------------------------------------- INDUSTRIAL 1950 STANFORD COURT Prince Georges County MD 1 53,250 6201 COLUMBIA PARK ROAD Prince Georges County MD 1 100,337 2000 SOUTH CLUB DRIVE Prince Georges County MD 1 83,608 -------------------------------------- 3 237,195 -------------------------------------- TOTAL GREATER WASHINGTON, DC AREA: 43 7,034,904 ==================================================================================================================================== ========================================================================================== ANNUALIZED REVENUE PER OCCUPIED % OCCUPIED SF ---------- ----------- GREATER WASHINGTON, D.C. OFFICE 2300 N STREET 100.0% $ 48.35 ONE INDEPENDENCE SQUARE 100.0% 38.41 TWO INDEPENDENCE SQUARE 100.0% 37.50 CAPITAL GALLERY 100.0% 34.00 500 E STREET, N. W. 100.0% 31.29 METROPOLITAN SQUARE (51% OWNERSHIP) 99.5% 35.21 1301 NEW YORK AVENUE 100.0% 33.54 SUMNER SQUARE 95.3% 31.54 DECOVERLY TWO 100.0% 21.92 DECOVERLY THREE 100.0% 21.30 DEMOCRACY CENTER 99.8% 26.41 MONTVALE CENTER 95.5% 20.89 ORBITAL SCIENCES, BUILDINGS ONE AND THREE 100.0% 22.93 THE ARBORETUM 100.0% 24.76 ONE FREEDOM SQUARE (25% OWNERSHIP) 95.6% 31.21 ONE RESTON OVERLOOK 100.0% 20.72 TWO RESTON OVERLOOK 100.0% 30.83 RESTON CORPORATE CENTER 100.0% 31.09 LOCKHEED MARTIN BUILDING 100.0% 41.67 NIMA BUILDING 100.0% 45.57 ---------------------------- 99.3% $ 32.96 ---------------------------- RESEARCH & DEVELOPMENT FULLERTON SQUARE 81.9% 10.35 SUGARLAND BUSINESS PARK, BUILDING ONE 100.0% 21.72 SUGARLAND BUSINESS PARK, BUILDING TWO 100.0% 20.79 7435 BOSTON BOULEVARD 100.0% 13.33 7451 BOSTON BOULEVARD 100.0% 14.76 7450 BOSTON BOULEVARD 100.0% 15.96 7374 BOSTON BOULEVARD 100.0% 11.30 8000 GRAINGER COURT 100.0% 10.82 7500 BOSTON BOULEVARD 100.0% 10.95 7501 BOSTON BOULEVARD 100.0% 24.25 7601 BOSTON BOULEVARD 100.0% 14.99 7600 BOSTON BOULEVARD 100.0% 13.96 7375 BOSTON BOULEVARD 87.8% 17.13 8000 CORPORATE COURT 100.0% 7.50 7700 BOSTON BOULEVARD 100.0% 20.88 ---------------------------- 96.9% $ 14.77 ---------------------------- INDUSTRIAL 1950 STANFORD COURT 38.5% 6.27 6201 COLUMBIA PARK ROAD 53.9% 8.81 2000 SOUTH CLUB DRIVE 100.0% 8.88 ---------------------------- 66.7% $ 8.52 ---------------------------- 97.8% ========================================================================================== 18
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PROPERTY LISTING AS OF SEPTEMBER 30, 2000 ==================================================================================================================================== NUMBER OF SUB MARKET BUILDINGS SQUARE FEET ---------- --------- ----------- MIDTOWN MANHATTAN, NY OFFICE 599 LEXINGTON AVENUE Park Avenue NY 1 1,000,497 280 PARK AVENUE Park Avenue NY 1 1,156,161 875 THIRD AVENUE East Side NY 1 687,876 -------------------------------------- TOTAL MIDTOWN MANHATTAN, NY AREA: 3 2,844,534 -------------------------------------- PRINCETON/EAST BRUNSWICK, NJ OFFICE 101 CARNEGIE CENTER Princeton NJ 1 124,049 104 CARNEGIE CENTER Princeton NJ 1 102,758 105 CARNEGIE CENTER Princeton NJ 1 69,648 201 CARNEGIE CENTER Princeton NJ - 6,500 202 CARNEGIE CENTER Princeton NJ 1 128,885 210 CARNEGIE CENTER Princeton NJ 1 159,498 211 CARNEGIE CENTER Princeton NJ 1 47,025 212 CARNEGIE CENTER Princeton NJ 1 150,069 214 CARNEGIE CENTER Princeton NJ 1 152,214 206 CARNEGIE CENTER Princeton NJ 1 161,763 502 CARNEGIE CENTER Princeton NJ 1 116,374 510 CARNEGIE CENTER Princeton NJ 1 234,160 504 CARNEGIE CENTER Princeton NJ 1 126,190 506 CARNEGIE CENTER Princeton NJ 1 150,888 508 CARNEGIE CENTER Princeton NJ 1 131,085 ONE TOWER CENTER East Brunswick NJ 1 417,129 -------------------------------------- -------------------------------------- TOTAL PRINCETON/EAST BRUNSWICK, NJ 15 2,278,235 -------------------------------------- -------------------------------------- GREATER SAN FRANCISCO, CA OFFICE EMBARCADERO CENTER ONE CBD San Francisco CA 1 820,817 EMBARCADERO CENTER TWO CBD San Francisco CA 1 777,896 EMBARCADERO CENTER THREE CBD San Francisco CA 1 766,404 EMBARCADERO CENTER FOUR CBD San Francisco CA 1 935,519 FEDERAL RESERVE CBD San Francisco CA 1 149,592 WEST TOWER CBD San Francisco CA 1 475,120 THE GATEWAY South San Francisco CA 2 506,395 -------------------------------------- 8 4,431,743 -------------------------------------- RESEARCH & DEVELOPMENT -------------------------------------- HILLTOP OFFICE CENTER South San Francisco CA 9 144,366 -------------------------------------- INDUSTRIAL 560 FORBES BLVD South San Francisco CA 1 40,000 430 ROZZI PLACE South San Francisco CA 1 20,000 2391 WEST WINTON Hayward CA 1 220,213 -------------------------------------- 3 280,213 -------------------------------------- TOTAL GREATER SAN FRANCISCO, CA: 20 4,856,322 ====================================== ==================================================================================================================================== ========================================================================================== ANNUALIZED REVENUE PER OCCUPIED % OCCUPIED SF ---------- ----------- MIDTOWN MANHATTAN, NY OFFICE 599 LEXINGTON AVENUE 100.0% $ 54.17 280 PARK AVENUE 98.2% 46.11 875 THIRD AVENUE 99.6% 47.33 --------------------------- 99.2% $ 49.26 --------------------------- PRINCETON/EAST BRUNSWICK, NJ OFFICE 101 CARNEGIE CENTER 100.0% 24.63 104 CARNEGIE CENTER 100.0% 28.25 105 CARNEGIE CENTER 100.0% 27.00 201 CARNEGIE CENTER 100.0% 21.62 202 CARNEGIE CENTER 100.0% 27.91 210 CARNEGIE CENTER 100.0% 27.19 211 CARNEGIE CENTER 100.0% 22.53 212 CARNEGIE CENTER 100.0% 27.86 214 CARNEGIE CENTER 92.4% 27.20 206 CARNEGIE CENTER 100.0% 26.84 502 CARNEGIE CENTER 98.2% 27.26 510 CARNEGIE CENTER 100.0% 24.90 504 CARNEGIE CENTER 100.0% 24.71 506 CARNEGIE CENTER 100.0% 25.80 508 CARNEGIE CENTER 100.0% 25.60 ONE TOWER CENTER 100.0% 31.50 --------------------------- 99.4% $ 27.28 --------------------------- GREATER SAN FRANCISCO, CA OFFICE EMBARCADERO CENTER ONE 98.7% 34.63 EMBARCADERO CENTER TWO 98.1% 37.02 EMBARCADERO CENTER THREE 98.0% 34.56 EMBARCADERO CENTER FOUR 99.7% 38.40 FEDERAL RESERVE 99.2% 43.80 WEST TOWER 99.0% 43.66 THE GATEWAY 96.8% 33.70 --------------------------- 98.5% $ 37.02 --------------------------- RESEARCH & DEVELOPMENT --------------------------- HILLTOP OFFICE CENTER 97.1% $ 12.92 --------------------------- INDUSTRIAL 560 FORBES BLVD 100.0% 9.72 430 ROZZI PLACE 100.0% 11.12 2391 WEST WINTON 100.0% 4.58 --------------------------- 100.0% $ 5.78 --------------------------- 98.5% =========== ========================================================================================== 19
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PROPERTY LISTING AS OF SEPTEMBER 30, 2000 ==================================================================================================================================== ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF BALTIMORE, MD OFFICE CANDLER BUILDING Baltimore MD 1 537,363 100.0% $ 16.88 100 EAST PRATT STREET Baltimore MD 1 634,236 100.0% 27.89 ------------------------------------------------------- TOTAL BALTIMORE MD AREA: 2 1,171,599 100.0% $ 22.84 ------------------------------------------------------- RICHMOND, VA OFFICE RIVERFRONT PLAZA Richmond VA 1 894,015 100.0% $ 22.47 ------------------------------------------------------- BUCKS COUNTY, PA INDUSTRIAL 38 CABOT BOULEVARD Bucks County PA 1 161,000 100.0% $ 4.47 ------------------------------------------------------- TOTAL IN-SERVICE PROPERTIES: 124 25,783,314 98.5% =========================================== =================================================================================================================================== 20
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 TOP 20 TENANTS BY SQUARE FEET LEASED =============================================================================================== TENANT SQ. FT. % OF PORTFOLIO -------------------------------------- --------------- ------------- 1 U.S. Government 2,026,870 7.60% 2 Lockheed Martin Corporation 716,653 2.69% 3 Gillette Company 488,177 1.83% 4 Washington Group International 473,429 1.78% 5 Shearman & Sterling 433,407 1.63% 6 Marsh & McLennan, Inc. 366,102 1.37% 7 TRW 331,048 1.25% 8 Hunton & Williams 322,829 1.21% 9 Covance, Inc. 321,261 1.21% 10 Debevoise & Plimpton 307,125 1.15% 11 AT & T 300,755 1.13% 12 First Union 276,843 1.04% 13 T. Rowe Price Associates, Inc. 276,665 1.04% 14 Andersen Consulting 265,622 1.00% 15 Parexel International Corp. 265,050 0.99% 16 Deutsche Bank 243,722 0.91% 17 Donaldson, Lufkin and Jenrette 237,896 0.89% 18 John Hancock Advisors 233,516 0.88% 19 Biogen, Inc. 220,026 0.83% 20 Orrick, Herrington & Sutcliffe 210,885 0.79% =============================================================================================== MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT =============================================================================================== TENANT SQ. FT. -------------------------------------- --------------- Ernst & Young, LLP 1,062,203 Parametric Technology Corporation 381,000 Tellabs Operations, Inc. 259,918 United States of America 235,201 Palmer & Dodge 204,412 =============================================================================================== 21
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 PORTFOLIO OVERVIEW - FFO PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS (1) FOR IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED SEPTEMBER 30, 2000 ================================================================================================================ GEOGRAPHIC AREA OFFICE (2) R&D INDUSTRIAL HOTEL GARAGE TOTAL --------------- ---------- --- ---------- ----- ------ ----- Greater Boston 19.9% 0.6% 0.2% 7.3% 0.5% 28.5% Greater Washington, D.C. 20.0% 2.5% 0.1% n/a n/a 22.6% Greater San Francisco 20.1% 0.2% 0.3% n/a n/a 20.6% Midtown Manhattan 15.2% n/a n/a n/a n/a 15.2% Baltimore, MD 3.5% n/a n/a n/a n/a 3.5% Richmond, VA 2.8% n/a n/a n/a n/a 2.8% Princeton/East Brunswick, NJ 6.8% n/a n/a n/a n/a 6.8% Bucks County, PA n/a n/a 0.1% n/a n/a 0.1% --------- -------- -------- -------- -------- -------- Total 88.3% 3.3% 0.7% 7.3% 0.5% 100.0% ========= ======== ======== ======== ======== ======== ================================================================================================================ (1) For this table, Property Funds from Operations is equal to GAAP basis property NOI which includes the effect of straight-line rent and excludes any deduction for interest expense. (2) Includes Retail Center FFO (Prudential Center Boston and Center). 22
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 OCCUPANCY ANALYSIS SAME PROPERTY OCCUPANCY - BY LOCATION ============================================================= LOCATION 30-SEP-00 30-SEP-99 Greater Boston, MA 97.9% 98.4% Greater Washington, D.C. 97.7% 96.0% Midtown Manhattan, NY 99.2% 99.9% Baltimore, MD 100.0% 100.0% Princeton/East Brunswick, NJ 99.3% 99.0% Richmond, VA 100.0% 97.1% Greater San Francisco, CA 98.7% 97.9% Bucks County, PA 100.0% 100.0% ----------- ----------- Total Portfolio 98.5% 98.0% =========== =========== ============================================================= SAME PROPERTY - BY TYPE OF PROPERTY ============================================================= 30-SEP-00 30-SEP-99 Total Office Portfolio 99.3% 98.6% Total R&D Portfolio 93.4% 95.6% Total Industrial Portfolio 89.6% 90.4% ----------- ----------- Total Portfolio 98.5% 98.0% =========== =========== ============================================================= 23
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE OFFICE PROPERTIES LEASE EXPIRATIONS =============================================================================================================================== ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ------------- ------------------- ------------------ -------------------- -------------------- 2000 371,795 $ 13,683,429 $ 14,019,006 1.66% 2001 1,954,763 60,072,716 62,227,620 8.75% 2002 1,951,568 74,790,328 75,982,162 8.73% 2003 1,928,122 62,236,628 66,024,378 8.63% 2004 2,484,088 86,805,941 90,042,638 11.11% 2005 2,182,092 71,061,369 77,175,748 9.76% 2006 2,938,252 96,992,025 107,306,953 13.14% 2007 1,428,857 52,678,632 55,300,569 6.39% 2008 864,909 30,690,476 28,949,226 3.87% 2009 1,843,550 59,584,098 74,022,566 8.25% Thereafter 4,776,456 168,566,969 201,310,214 21.37% =============================================================================================================================== OCCUPANCY BY LOCATION =============================================================================================================================== 30-SEP-00 30-SEP-99 Greater Boston, MA 99.4% 97.6% Greater Washington, D.C. 99.3% 98.0% Midtown Manhattan, NY 99.2% 99.9% Baltimore, MD 100.0% 100.0% Richmond, VA 100.0% 97.1% Princeton/East Brunswick, NJ 99.4% 99.1% Greater San Francisco, CA 98.5% 97.9% Bucks County, PA n/a n/a --------------------- ---------------------- Total Office Portfolio 99.2% 98.3% ===================== ====================== =============================================================================================================================== 24
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE R&D PROPERTIES LEASE EXPIRATIONS =============================================================================================================================== ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ------------- ------------------ ------------------ -------------------- -------------------- 2000 162,365 $ 1,811,046 $ 1,811,046 10.44% 2001 265,881 3,307,915 3,381,473 17.10% 2002 312,617 4,401,635 4,472,016 20.11% 2003 102,807 1,348,760 1,391,633 6.61% 2004 62,821 886,369 972,346 4.04% 2005 144,755 1,673,499 1,888,034 9.31% 2006 203,000 2,487,710 2,600,210 13.06% 2007 157,895 2,852,803 3,098,987 10.16% 2008 - - - - 2009 - - - - Thereafter 304,813 5,109,816 6,292,573 19.61% =============================================================================================================================== OCCUPANCY BY LOCATION =============================================================================================================================== 30-SEP-00 30-SEP-00 Greater Boston, MA 85.3% 100.0% Greater Washington, D.C. 96.9% 94.0% Midtown Manhattan, NY n/a n/a Baltimore, MD n/a n/a Richmond, VA n/a n/a Princeton/East Brunswick, NJ n/a n/a Greater San Francisco, CA 97.1% 97.9% Bucks County, PA n/a n/a ----------------- ---------------------- Total R&D Portfolio 93.4% 95.9% ================= ====================== =============================================================================================================================== 25
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE INDUSTRIAL PROPERTIES LEASE EXPIRATIONS =============================================================================================================================== ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ------------- ------------------ ------------------ -------------------- -------------------- 2000 56,747 $ 540,075 $ 540,075 7.34% 2001 60,000 256,085 256,085 7.77% 2002 184,904 927,039 927,039 23.93% 2003 147,305 989,907 1,053,959 19.06% 2004 235,076 1,369,608 1,463,108 30.42% 2005 20,500 128,548 140,832 2.65% 2006 21,298 227,605 288,432 2.76% 2007 20,000 222,456 258,783 2.59% 2008 83,608 742,152 815,347 10.82% 2009 - - - - Thereafter - - - - =============================================================================================================================== OCCUPANCY BY LOCATION =============================================================================================================================== 30-SEP-00 30-SEP-99 Greater Boston, MA 93.0% 93.0% Greater Washington, D.C. 66.7% 78.2% Midtown Manhattan, NY n/a n/a Baltimore, MD n/a n/a Richmond, VA n/a n/a Princeton/East Brunswick, NJ n/a n/a Greater San Francisco, CA 100.0% 92.9% Bucks County, PA 100.0% 100.0% ------------------- ---------------------- Total Industrial Portfolio 89.6% 90.4% =================== ====================== =============================================================================================================================== 26
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES LEASE EXPIRATION ==================================================================================================================================== ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ------------- ------------------ ------------------ -------------------- -------------------- 2000 590,907 $ 16,034,550 $ 16,370,127 2.34% 2001 2,280,644 63,636,716 65,865,178 9.02% 2002 2,449,089 80,119,002 81,381,217 9.69% 2003 2,178,234 64,575,295 68,469,970 8.62% 2004 2,781,985 89,061,918 92,478,092 11.01% 2005 2,347,347 72,863,416 79,204,614 9.29% 2006 3,162,550 99,707,340 110,195,595 12.51% 2007 1,606,752 55,753,891 58,658,339 6.36% 2008 948,517 31,432,628 29,764,573 3.75% 2009 1,843,550 59,584,098 74,022,566 7.30% Thereafter 5,081,269 173,676,785 207,602,787 20.11% ==================================================================================================================================== OCCUPANCY BY LOCATION ==================================================================================================================================== 30-SEP-00 30-SEP-99 Greater Boston, MA 98.0% 97.6% Greater Washington, D.C. 97.8% 96.5% Midtown Manhattan, NY 99.2% 99.9% Baltimore, MD 100.0% 100.0% Richmond, VA 100.0% 97.1% Princeton/East Brunswick, NJ 99.4% 99.1% Greater San Francisco, CA 98.5% 97.6% Bucks County, PA 100.0% 100.0% -------------------- --------------------- Total Portfolio 98.5% 97.8% ==================== ===================== ==================================================================================================================================== 27
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE GREATER BOSTON PROPERTIES LEASE EXPIRATIONS GREATER BOSTON ====================================================================================== OFFICE ----------------------------------------------------------------- RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ---------------- --------------- -------------------- 2000 104,668 $ 5,349,734 $ 5,568,170 2001 715,084 19,308,940 20,674,415 2002 413,284 12,610,975 12,796,292 2003 598,366 17,293,463 19,155,467 2004 725,405 26,734,880 28,397,582 2005 814,624 28,115,055 29,663,492 2006 508,357 15,777,230 17,669,256 2007 249,111 8,408,677 9,556,214 2008 5,526 690,634 795,402 2009 932,908 29,158,664 34,886,475 Thereafter 497,190 12,152,678 18,484,240 ====================================================================================== ======================================================================================================= R&D ------------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ---------------------- ------------------ --------------------- 2000 -- $ -- $ -- 2001 -- -- -- 2002 94,140 884,697 892,197 2003 50,704 599,458 599,458 2004 -- -- -- 2005 -- -- -- 2006 203,000 2,487,710 2,600,210 2007 50,000 475,000 675,000 2008 -- -- -- 2009 -- -- -- Thereafter 67,362 1,295,391 1,601,888 ======================================================================================================= ======================================================================================================= INDUSTRIAL ---------------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 56,747 $ 540,075 $ 540,075 2001 -- 2002 23,904 207,563 207,563 2003 128,105 861,075 925,127 2004 -- -- -- 2005 -- -- -- 2006 21,298 227,605 288,432 2007 -- -- -- 2008 -- -- -- 2009 -- -- -- Thereafter -- -- -- ======================================================================================================= 28
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE GREATER WASHINGTON DC PROPERTIES LEASE EXPIRATIONS GREATER WASHINGTON ============================================================================================== OFFICE ---------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ---------------- --------------- -------------------- 2000 115,181 $ 3,098,664 $ 3,098,664 2001 262,256 7,888,888 7,951,762 2002 241,406 6,537,171 6,838,122 2003 176,399 4,987,331 5,645,700 2004 489,094 15,999,434 16,754,931 2005 406,638 12,863,168 14,709,966 2006 783,891 30,900,794 33,425,199 2007 532,014 19,006,080 16,295,416 2008 371,709 15,026,962 11,662,637 2009 399,964 13,458,454 20,039,418 Thereafter 1,829,377 56,011,460 65,626,481 ============================================================================================== ======================================================================================= R&D ------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ------------------ --------------- -------------------- 2000 159,365 $ 1,775,691 $ 1,775,691 2001 234,184 2,913,118 2,982,309 2002 175,991 2,987,413 3,033,825 2003 23,439 330,438 347,548 2004 62,821 886,369 972,346 2005 110,436 1,264,761 1,407,615 2006 -- -- -- 2007 107,895 2,377,803 2,423,987 2008 -- -- -- 2009 -- -- -- Thereafter 237,451 3,814,425 4,690,685 ======================================================================================= ======================================================================================= INDUSTRIAL ------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ----------------- --------------- -------------------- 2000 2001 -- -- -- 2002 -- -- -- 2003 19,200 128,832 128,832 2004 34,863 228,725 245,374 2005 20,500 128,548 140,832 2006 -- -- -- 2007 -- -- -- 2008 83,608 742,152 815,347 2009 Thereafter -- -- -- ======================================================================================= 29
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES LEASE EXPIRATIONS GREATER SAN FRANCISCO ============================================================================================== OFFICE ---------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------- ------------------ -------------------- 2000 59,960 $ 2,425,817 $ 2,476,958 2001 294,343 10,408,123 10,493,241 2002 325,647 10,933,133 11,469,778 2003 652,372 25,170,913 25,679,650 2004 726,150 29,725,794 30,328,979 2005 340,100 13,638,490 15,389,388 2006 882,337 30,523,008 34,478,477 2007 403,989 14,991,067 18,033,192 2008 167,514 6,469,189 6,642,018 2009 267,226 10,387,601 11,136,488 Thereafter 247,655 11,733,887 17,164,068 ============================================================================================== =================================================================================== R&D --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------- --------------- -------------------- 2000 3,000 $ 35,355 $ 35,355 2001 31,697 394,797 399,164 2002 42,486 529,525 545,994 2003 28,664 418,864 444,627 2004 -- -- -- 2005 34,319 408,738 480,419 2006 -- -- -- 2007 -- -- -- 2008 -- -- -- 2009 -- -- -- Thereafter -- -- -- =================================================================================== ====================================================================================== INDUSTRIAL ---------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 -- $ -- $ -- 2001 60,000 256,085 256,085 2002 -- -- -- 2003 -- -- -- 2004 200,213 1,140,883 1,217,734 2005 -- -- -- 2006 -- -- -- 2007 20,000 222,456 258,783 2008 -- -- -- 2009 -- -- -- Thereafter -- -- -- ====================================================================================== 30
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE NEW YORK PROPERTIES LEASE EXPIRATIONS MID-TOWN MANHATTAN ================================================================================================== OFFICE ------------------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------- -------------------- 2000 -- $ -- $ -- 2001 128,591 7,267,795 7,288,566 2002 761,144 39,789,028 39,887,377 2003 191,231 7,692,826 7,737,240 2004 18,275 1,001,494 1,047,505 2005 55,239 2,745,242 2,893,125 2006 25,440 1,170,140 1,239,494 2007 142,895 7,003,855 8,066,889 2008 114,411 4,909,399 5,421,829 2009 36,802 2,207,096 2,618,182 Thereafter 1,351,986 66,885,432 76,835,526 ================================================================================================== ================================================================================= R&D ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ----------------- -------------------- 2000 - $ -- $ -- 2001 - -- -- 2002 - -- -- 2003 - -- -- 2004 - -- -- 2005 - -- -- 2006 - -- -- 2007 - -- -- 2008 - -- -- 2009 - -- -- Thereafter - -- -- ================================================================================= ===================================================================================== INDUSTRIAL ---------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------- ------------------ -------------------- 2000 - $ -- $ -- 2001 - -- -- 2002 - -- -- 2003 - -- -- 2004 - -- -- 2005 - -- -- 2006 - -- -- 2007 - -- -- 2008 - -- -- 2009 - -- -- Thereafter - -- -- ===================================================================================== 31
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES LEASE EXPIRATIONS PRINCETON/EAST BRUNSWICK ================================================================================================== OFFICE ---------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 86,595 $ 2,679,051 $ 2,679,051 2001 431,633 12,652,418 12,794,543 2002 30,959 889,142 889,142 2003 121,909 3,168,639 3,338,652 2004 392,763 10,748,152 10,750,714 2005 166,774 4,305,384 4,763,388 2006 39,462 1,109,681 1,186,567 2007 56,720 1,551,749 1,672,441 2008 15,243 428,358 466,465 2009 82,242 2,287,793 2,585,095 Thereafter 835,586 21,618,228 23,020,583 ================================================================================================== ======================================================================================= R&D --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 - $-- $-- 2001 - -- -- 2002 - -- -- 2003 - -- -- 2004 - -- -- 2005 - -- -- 2006 - -- -- 2007 - -- -- 2008 - -- -- 2009 - -- -- Thereafter - -- -- ======================================================================================= ======================================================================================= INDUSTRIAL ----------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ----------------- --------------- -------------------- 2000 - $-- $-- 2001 - -- -- 2002 - -- -- 2003 - -- -- 2004 - -- -- 2005 - -- -- 2006 - -- -- 2007 - -- -- 2008 - -- -- 2009 - -- -- Thereafter - -- -- ======================================================================================= 32
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 IN-SERVICE OTHER PROPERTIES LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND VA, BALTIMORE MD, BUCKS COUNTY, PA) ================================================================================================== OFFICE ---------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 5,391 $ 130,163 $ 196,163 2001 122,856 2,546,552 3,025,093 2002 179,128 4,030,879 4,101,451 2003 187,845 3,923,456 4,467,669 2004 132,401 2,596,187 2,762,927 2005 398,717 9,394,030 9,756,389 2006 698,765 17,511,172 19,307,960 2007 44,128 1,717,204 1,676,417 2008 190,506 3,165,934 3,960,875 2009 124,408 2,084,490 2,756,908 Thereafter 14,662 165,284 179,316 ================================================================================================== ======================================================================================= R&D --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2000 - $-- $-- 2001 - -- -- 2002 - -- -- 2003 - -- -- 2004 - -- -- 2005 - -- -- 2006 - -- -- 2007 - -- -- 2008 - -- -- 2009 - -- -- Thereafter - -- -- ======================================================================================= ======================================================================================= INDUSTRIAL ----------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ----------------- --------------- -------------------- 2000 -- $ -- $ -- 2001 -- -- -- 2002 161,000 719,476 719,476 2003 -- -- -- 2004 -- -- -- 2005 -- -- -- 2006 -- -- -- 2007 -- -- -- 2008 -- -- -- 2009 -- -- -- Thereafter -- -- -- ======================================================================================= 33
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 HOTEL PERFORMANCE SAME PROPERTY HOTELS LONG WHARF MARRIOTT - BOSTON ==================================================================================================================================== THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 93.4% 93.5% -0.1% 91.2% 89.0% 2.5% Average Daily Rate $ 284.84 $ 249.11 14.3% $ 250.61 $ 228.96 9.5% REVPAR $ 266.04 $ 232.92 14.2% $ 228.56 $ 203.77 12.2% ==================================================================================================================================== CAMBRIDGE CENTER MARRIOTT ==================================================================================================================================== THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 91.6% 88.2% 3.9% 87.7% 85.5% 2.6% Average Daily Rate $ 214.35 $ 187.17 14.5% $ 202.18 $ 181.65 11.3% REVPAR $ 196.34 $ 165.08 18.9% $ 177.31 $ 155.31 14.2% ==================================================================================================================================== RESIDENCE INN BY MARRIOTT ==================================================================================================================================== THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999(1) CHANGE ---- ---- ------ ---- ---- ------ Occupancy 97.6% 91.1% 7.1% 92.9% 82.8% 12.2% Average Daily Rate $ 177.56 $ 157.08 13.0% $ 168.94 $ 151.14 11.8% REVPAR $ 173.30 $ 143.10 21.1% $ 156.95 $ 125.14 25.4% ==================================================================================================================================== TOTAL SAME PROPERTY HOTEL PERFORMANCE ==================================================================================================================================== THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 93.5% 90.8% 3.0% 90.1% 86.3% 4.4% Average Daily Rate $ 233.52 $ 204.48 14.2% $ 213.68 $ 193.30 10.5% REVPAR $ 218.09 $ 186.35 17.0% $ 192.59 $ 167.47 15.0% ==================================================================================================================================== (1) Operational as of 2/01/99 34
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 SAME PROPERTY PERFORMANCE OFFICE, R&D, INDUSTRIAL AND HOTEL PROPERTIES ==================================================================================================================================== OFFICE R&D INDUSTRIAL HOTEL GARAGE TOTAL ------ --- ---------- ----- ------ ----- Number of Properties 70 30 9 3 1 113 Square feet 20,416,860 1,831,901 925,726 937,874 332,442 24,444,803 Percent of in-service properties 88.7% 100.0% 100.0% 100.0% 100% 87.2% Occupancy @ 09/30/99 98.6% 95.6% 90.4% -- -- 98.0% Occupancy @ 09/30/00 99.3% 93.4% 89.6% -- -- 98.4% Percent change from 3rd quarter 2000 over 3rd quarter 1999: Revenue 5.5% -4.3% 10.4% 21.4% 44.2% 6.2% Expense 0.0% 8.8% 9.7% 9.2% 23.0% 0.6% Net Operating Income 8.5% -9.9% 10.6% 23.1% 52.9% 9.1% ==================================================================================================================================== SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED SEPTEMBER 30, 2000 ==================================================================================================================================== OFFICE R&D INDUSTRIAL TOTAL -------- -------- ---------- -------- Vacant space available @ 7/01/00 (sf) 92,042 160,438 90,163 342,643 Square footage of leases expiring or terminated 07/01/00-09/30/00 389,122 30,148 6,125 425,395 -------- -------- -------- -------- Total space for lease (sf) 481,164 190,586 96,288 768,038 ======== ======== ======== ======== New tenants (sf) 271,129 61,087 -- 332,216 Renewals (sf) 77,002 9,500 -- 86,502 -------- -------- -------- -------- Total space leased (sf) 348,131 70,587 -- 418,718 ======== ======== ======== ======== Space available @ 9/30/00 (sf) 133,033 119,999 96,288 349,320 ======== ======== ======== ======== Net increase (decrease) in leased space (sf) (40,991) 40,439 (6,125) (6,677) Average lease term (months) 65 55 -- 64 2nd generation TI/Comm PSF $ 14.26 $ 2.20 $ -- $ 12.23 Increase in 2nd generation net rents (1) 74.4% 12.8% -- 70.1% ==================================================================================================================================== (1) Represents increase in net rents on a "cash to cash" basis. (Actual net rent at time of expiration vs. initial net rent of new lease.) 35
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED SEPTEMBER 30, 2000 =========================================================================================================================== OFFICE R&D INDUSTRIAL TOTAL ------ --- ---------- ----- Vacant space available @ 7/01/00 (sf) 136,087 160,438 90,163 386,688 Square footage of leases expiring or terminated 7/01/00-9/30/00 430,005 30,148 6,125 466,278 -------- -------- -------- -------- Total space for lease (sf) 566,092 190,586 96,288 852,966 ======== ======== ======== ======== New tenants (sf) 314,469 61,087 -- 375,556 Renewals (sf) 77,002 9,500 -- 86,502 -------- -------- -------- -------- Total space leased (sf) 391,471 70,587 -- 462,058 ======== ======== ======== ======== Space available @ 9/30/00 (sf) 174,621 119,999 96,288 390,908 ======== ======== ======== ======== Net increase/(decrease) in leased space (sf) (38,534) 40,439 (6,125) (4,220) Average lease term (months) 64 55 -- 63 2nd generation TI/Comm PSF $ 13.60 $ 2.20 $ -- $ 11.86 Increase in 2nd generation net rents (1) 73.8% 12.8% 0.0% 69.9% =========================================================================================================================== (1) Represents increase in net rents on a "cash to cash" basis (actual net rent at time of expiration vs. initial net rent of new lease). 36
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS (in thousands) Historical Capital Expenditures =================================================================================================================================== 1995 1996 1997 1998 ---- ---- ---- ---- Recurring capital expenditures $ 1,618 $ 1,083 $ 1,125 $ 3,543 ========== ========== ========== ========== Hotel improvements, equipment upgrades $ 4,420 $ 3,041 $ 2,625 $ 3,872 ========== ========== ========== ========== and replacements =================================================================================================================================== 2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS =================================================================================================================================== 1995 1996 1997 1998 ---- ---- ---- ---- Office Square feet 768,459 970,072 1,016,427 648,291 ---------- ---------- ---------- ---------- Tenant improvement and lease commissions p.s.f $ 10.66 $ 11.40 $ 10.83 $ 9.82 ---------- ---------- ---------- ---------- R&D Square feet 177,073 337,676 169,878 113,428 ---------- ---------- ---------- ---------- Tenant improvement and lease commissions p.s.f $ 6.99 $ 10.45 $ 2.22 $ 3.32 ---------- ---------- ---------- ---------- Industrial Square feet 308,388 128,148 258,795 320,608 ---------- ---------- ---------- ---------- Tenant improvement and lease commissions p.s.f $ 1.00 $ 1.71 $ 0.99 $ 1.13 ---------- ---------- ---------- ---------- Average tenant improvement and lease commission p.s.f. $ 7.77 $ 10.31 $ 8.06 $ 6.57 ========== ========== ========== ========== =================================================================================================================================== ==================================================================================================== YTD 1999 2000 ---- ---- Recurring capital expenditures $ 11,611 $ 7,635 ========== ========== Hotel improvements, equipment upgrades $ 2,346 $ 1,635 ========== ========== and replacements ==================================================================================================== 2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS ==================================================================================================== YTD 1999 2000 ---- ---- Office Square feet 2,115,281 2,332,416 ---------- ---------- Tenant improvement and lease commissions p.s.f $ 10.60 $ 13.01 ---------- ---------- R&D Square feet 167,231 467,244 ---------- ---------- Tenant improvement and lease commissions p.s.f $ 1.94 $ 0.82 ---------- ---------- Industrial Square feet 163,962 181,000 ---------- ---------- Tenant improvement and lease commissions p.s.f $ 0.60 $ 1.22 ---------- ---------- Average tenant improvement and lease commission p.s.f. $ 9.34 $ 10.43 ========== ========== ==================================================================================================== 37
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS AS OF SEPTEMBER 30, 2000 ACQUISITIONS ==================================================================================================================================== ANTICIPATED INITIAL FUTURE TOTAL CURRENT PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY -------- ------------- ----------- ---------- ---------- ---------- --------- ACQUISITIONS CLASS A OFFICE BUILDINGS One and Two Reston Overlook Jan-00 444,286 $ 15,200,000 $ -- $ 15,200,000(1) 100% 504, 506, 508 Carnegie Center Mar-00 408,163 66,500,000 -- 66,500,000 100% 265 Franklin Street (2) Sep-00 326,714 10,500,000 7,980,000 18,480,000 100% ------------ ------------ ------------ ------------ ----------- TOTAL VALUE CREATION PIPELINE - 1,179,163 $ 92,200,000 $ 7,980,000 $100,180,000 100% ============ ============ ============ ============ =========== ACQUISITIONS ==================================================================================================================================== DISPOSITIONS ==================================================================================================================================== NET PROPERTY DATE DISPOSED SQUARE FEET PROCEEDS BOOK VALUE GAIN (LOSS) -------- ------------- ----------- -------- ---------- ---------- 140 Kendrick Street (3) May-00 381,000 $ 15,843,000 $ 15,843,000 $ -- Metropolitan Square (4) May-00 582,194 30,870,000 30,467,000 403,000 910 and 930 Clopper Road Sep-00 240,596 24,125,000 24,948,000 (823,000) ------------- ------------- ----------- TOTAL VALUE CREATION PIPELINE $ 70,838,000 $ 71,258,000 $ (420,000) ============= ============= =========== DISPOSITIONS ==================================================================================================================================== (1) Represents the acquisition of the joint venture partner's 75% interest. Boston Properties now owns 100% of the property. (2) Represents the acquisition of a 35% interest in this property through a joint venture with NYSCRF. (3) Represents the disposition of a 75% interest to a joint venture partner. Boston Properties now retains a 25% interest. (4) Represents the disposition of a 49% interest to a joint venture partner. Boston Properties now retains a 51% interest. 38
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS AS OF SEPTEMBER 30, 2000 ==================================================================================================================================== # OF DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION BUILDINGS ---------------------- ----------------- ------------------ -------- --------- CLASS A OFFICE BUILDINGS Market Square North (50% ownership) Q1 2000 Q4 2000 Washington, DC 1 New Dominion Tech Park - Building 1 Q4 2000 Q4 2000 Herndon, VA 1 302 Carnegie Center Q4 2000 Q2 2001 Princeton, NJ 1 2600 Tower Oaks Boulevard Q2 2001 Q3 2001 Rockville, MD 1 Broad Run Business Park- Building E Q2 2001 Q4 2001 Dulles, VA 1 140 Kendrick Street (25% ownership) Q1 2001 Q1 2001 Needham, MA 3 Orbital Sciences Phase II - Building 2 Q2 2001 Q2 2001 Dulles, VA 1 Quorum Office Park Q3 2001 Q4 2001 Chelmsford, MA 2 111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1 5 Times Square Q4 2001 Q2 2002 New York, NY 1 One and Two Discovery Square Q4 2001 Q4 2002 Reston, VA 2 Waltham Weston Corporate Center Q4 2001 Q4 2002 Waltham, MA 1 Andover Office Park, Building 1 Q2 2001 Q2 2002 Andover, MA 1 -------- TOTAL DEVELOPMENT PROPERTIES 17 ======== ==================================================================================================================================== DEVELOPMENTS PLACED-IN-SERVICE DURING 2000 ==================================================================================================================================== PLACED IN SERVICE DATE LOCATION --------------- -------- CLASS A OFFICE BUILDING Orbital Sciences Phase I - Building 1 & 3 Q2 2000 Dulles, VA ==================================================================================================================================== ==================================================================================================================================== ANTICIPATED CURRENT INVESTMENT TOTAL PERCENTAGE DEVELOPMENT PROPERTIES SQUARE FEET TO DATE INVESTMENT LEASED ---------------------- ----------- ------- ---------- ------ CLASS A OFFICE BUILDINGS Market Square North (50% ownership) 409,843 $ 55,247,426 $ 61,631,239(1) 100% New Dominion Tech Park - Building 1 235,201 37,414,759 48,770,000 100% 302 Carnegie Center 64,565 8,766,658 12,867,000 23% 2600 Tower Oaks Boulevard 178,216 19,603,954 38,295,000 71% Broad Run Business Park- Building E 124,650 2,928,697 14,696,000 100% 140 Kendrick Street (25% ownership) 381,000 17,765,675 20,214,000(2) 100% Orbital Sciences Phase II - Building 2 160,502 9,644,970 27,618,000 100% Quorum Office Park 259,918 8,451,654 41,747,000 100% 111 Huntington Avenue - Prudential Center 890,000 137,613,174 291,637,000 58% 5 Times Square 1,099,154 238,108,084 536,115,000 100% One and Two Discovery Square 362,868 2,236,418 85,994,000 0% Waltham Weston Corporate Center 295,000 12,292,054 95,446,000 0% Andover Office Park, Building 1 120,000 2,220,579 17,381,000 50% -------------- -------------- -------------- -------- TOTAL DEVELOPMENT PROPERTIES 4,580,917 $ 552,294,102 $1,292,411,239 74% ============== ============== ============== ======== ==================================================================================================================================== DEVELOPMENTS PLACED-IN-SERVICE DURING 2000 ==================================================================================================================================== # OF INVESTMENT TOTAL PERCENTAGE BUILDINGS SQUARE FEET TO DATE INVESTMENT LEASED --------- ----------- ------- ---------- ------ CLASS A OFFICE BUILDING Orbital Sciences Phase I - Building 1 & 3 2 174,832 $ 30,165,566 $ 32,000,000 100% ======== ============== ================= ================== =========== ==================================================================================================================================== (1) Represents 50% of the total anticipated project-level investment. Represents the office component. (2) Represents 25% of the total anticipated project-level investment Net of tenant work paid by the developer until completion that is estimated to be $4.1 million. 39
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 S VALUE CREATION PIPELINE - OWNED LAND PARCELS AS OF SEPTEMBER 30, 2000 ============================================================== NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET Rockville, MD (1) 5 96.5 1,260,000 Dulles, VA 2 76.6 937,000 Gaithersburg, MD 4 27.0 850,000 Reston, VA 2 4.7 720,000 Boston, MA 4 2.5 699,000 Herndon, VA 2 25.2 383,000 S. San Francisco, CA 2 3.6 370,000 Andover, MA 1 10.0 110,000 Springfield, VA 3 9.4 72,000 --------- --------- ---------- 25 255.5 5,401,000 ========= ========= ========== ============================================================== VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS AS OF SEPTEMBER 30, 2000 ============================================================== NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET Dulles, VA (2) 2 82.0 2,500,000 Princeton, NJ (3) 14 149.9 1,900,000 New York, NY (4) 1 0.5 1,200,000 San Jose, CA (5) 5 3.7 841,000 Washington, DC (6) 1 1.3 550,000 Marlborough, MA (7) 1 50.0 400,000 Weston, MA (8) 1 74.0 350,000 Framingham, MA (9) 1 21.5 300,000 Cambridge, MA (10) 1 2.6 165,000 --------- --------- ---------- 27 385.4 8,206,000 ========= ========= ========== ============================================================== (1) Includes 254,000 square feet of building on a 7.5 acre parcel under a ground lease to a third party. (2) $60.0 million subject to receiving all necessary permits and approvals. (3) $20.00/FAR plus an earnout calculation. (4) $159.75 million for both leasehold interest and ESAC credits. (5) $26.3 million subject to receiving all necessary permits and approvals. (6) We have an agreement to acquire a 25% equity interest in this site and to develop it though our joint venture with NYSCRF. (7) $7.2 million subject to receiving all necessary permits and approvals. (8) $18.2 million (of which $9.1 million has already been paid) subject to receiving all necessary permits and approvals. (9) Subject to ground lease. (10)Prior to January 23, 2001 the cost would be $25.02/SF of land area then $25.92/SF of land area prior to January 23,2002. Land area is approximately 108,000 SF. 40
BOSTON PROPERTIES, INC. THIRD QUARTER 2000 ACQUISITION PROPERTY PROFILE PROPERTY NAME: 265 Franklin Street PRODUCT TYPE: Class A Office Building LOCATION: Boston, Massachusetts DESCRIPTION: Class A Office Space SIZE: 326,714 net rentable square feet YEAR CONSTRUCTED: 1984 PURCHASE PRICE: $10.5 million (1) CLOSING DATE: September 13, 2000 FUTURE INVESTMENT: $ 8.0 million (1) OCCUPANCY LEVEL: 100% NUMBER OF TENANTS: 15 FUNDING SOURCE: Cash and new mortgage debt LARGEST TENANT: COMPANY: SIZE: LEASE EXPIRATION: Fidelity Properties 172,009 5/31/2001 Paine Webber 70,246 7/31/2005 Goldstein & Manello 40,038 12/31/2010 (1) Represents our 35% interest in this joint venture. 41
Exhibit 99.2 BOSTON PROPERTIES, INC. 800 BOYLSTON STREET, SUITE 400 BOSTON, MA 02199 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD Elaine Quinlan Marilynn Meek - General Info. (212) 661-8030 Investor Relations Claire Koeneman - Analyst (312) 266-7800 (617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030 BOSTON PROPERTIES, INC. ANNOUNCES THIRD QUARTER 2000 RESULTS REPORTS FFO PER SHARE OF $0.85 BOSTON, MA, OCTOBER 16, 2000 - Boston Properties, Inc. (NYSE: BXP) today reported results for the third quarter ended September 30, 2000. Funds from Operations (FFO) for the quarter ended September 30, 2000 were $61.5 million, or $0.90 per share basic and $0.85 per share diluted, compared to FFO of $50.2 million, or $0.74 per share basic and $0.72 per share diluted for the quarter ended September 30, 1999. This represents an 18.1% year to year increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 68,751,768 and 83,657,357, respectively, for the quarter ended September 30, 2000 and 67,900,734 and 81,485,166, respectively, for the same quarter last year. FFO for the nine months ended September 30, 2000 was $175.5 million, or $2.56 per share basic and $2.46 per share diluted, compared to FFO of $144.6 million, or $2.20 per share basic and $2.15 per share diluted for the nine months ended September 30, 1999. The weighted average number of basic and diluted shares outstanding totaled 68,568,410 and 82,599,673, respectively, for the nine months ended September 30, 2000 and 65,672,095 and 76,674,436, respectively, for the same period last year. Revenue were $223.3 million for the quarter and $650.8 million for the nine months ended September 30, 2000, compared to revenue of $202.1 million and $581.4 million for the same periods in 1999. Net income available to common shareholders for the quarter and nine months ended September 30, 2000 was $36.5 million and $103.3 million, respectively, compared to $27.4 million and $79.6 million for the same periods in 1999. Net income per share available to common shareholders for the quarter and nine months ended September 30, 2000 were $0.53 per share basic and $0.50 per share diluted and $1.51 per share basic and $1.48 per share diluted, respectively, compared to $0.40 per share basic and diluted and $1.21 per share basic and $1.20 per share diluted for the same periods last year. -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2000. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. As of September 30, 2000, the Company's portfolio consisted of 145 properties comprising more than 37.2 million square feet, including 18 properties currently under development totaling 4.6 million square feet. The overall occupancy rate for the properties in service as of September 30, 2000 was 98.5%. Additional highlights of the third quarter include: - - The closing of construction financing on August 25, 2000 totaling $32.25 million collateralized by the Quorum Office Park development project in Chelmsford, Massachusetts. Such financing matures in August 2003 and bears interest at a rate of LIBOR + 1.65%. - - The acquisition of a 35% interest in 265 Franklin Street, a 326,714 square foot Class A office building in Boston, Massachusetts, on September 13, 2000 for approximately $34.3 million. The remaining 65% interest is owned by our joint venture partner, the New York State Common Retirement Fund. - - On September 18, 2000, the Board of Directors of the Company declared a dividend of $0.53 per share for the period from July 1, 2000 through September 30, 2000, payable on October 27, 2000 to shareholders of record on September 29, 2000. - - The amendment of our unsecured line of credit on September 20, 2000 with Fleet National Bank to allow us to borrow up to $605.0 million. - - The refinancing of mortgage loans on September 28, 2000 which consisted of replacing $52.3 million collateralized by 202, 212 and 214 Carnegie Center with $63.0 million of loans collateralized by 202, 206 and 214 Carnegie Center. Such financing bears interest at a rate equal to 8.13% and matures in October 2010. - - The disposition of 910 and 930 Clopper Road in Gaithersburg, Maryland, two properties supporting both office and technical uses totaling 240,596 square feet, on September 29, 2000 for approximately $24.1 million. Transactions completed subsequent to September 30, 2000: - - The refinancing of the mortgage loan on 601 and 651 Gateway Boulevard on October 2, 2000 which consisted of replacing the $75.0 million mortgage loan with a $90.0 million loan. The new financing bears interest at a rate equal to 8.40% and matures in October 2010. -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 - - The closing on October 6, 2000 of a 50% joint venture with an affiliate of Westbrook which was formed to develop One and Two Discovery Square, two Class A office buildings in Reston, Virginia totaling 362,868 square feet. - - The announcement on October 11, 2000 of a 15,000,000 share public common stock offering with proceeds to be used to fund development activities and paydown the unsecured line of credit. - - The closing of bond financing on October 12, 2000 totaling $57.61 million collateralized by the New Dominion Tech Park, Building One development project in Herndon, Virginia. Such financing matures in October 2020 and bears interest at a rate of 7.58%. The proceeds of $57.61 million will be funded into an escrow and held until the New Dominion Tech Park, Building One is completed, which is estimated to be in December 2000. At that time, the current construction loan will be paid off and the remaining proceeds will be available to Boston Properties. - - The disposition of 1950 Stanford Court, a single story industrial building totaling 53,250 square feet, and an adjacent parcel of land totaling approximately 2 acres in Landover, MD, on October 13, 2000 for approximately $2.2 million. Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in the Northeast Corridor from Virginia to Greater Boston and in Greater San Francisco. To receive Boston Properties' latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the Company's web site at http://www.bostonproperties.com. THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS. 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 AND COULD MATERIALLY AFFECT ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS. THESE FACTORS INCLUDE, WITHOUT LIMITATION, THE ABILITY TO ENTER INTO NEW LEASES OR RENEW LEASES ON FAVORABLE TERMS, DEPENDENCE ON TENANTS' FINANCIAL CONDITION, THE UNCERTAINTIES OF REAL ESTATE DEVELOPMENT AND ACQUISITION ACTIVITY, THE ABILITY TO EFFECTIVELY INTEGRATE ACQUISITIONS, THE COSTS AND AVAILABILITY OF FINANCING, THE EFFECTS OF LOCAL ECONOMIC AND MARKET CONDITIONS, REGULATORY CHANGES AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. FINANCIAL TABLES FOLLOW. -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 [INCOME STATEMENT] BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (undaudited and in thousands) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ------------------------------ ------------------------------ 2000 1999 2000 1999 ------------- --------------- ------------- -------------- Revenue Rental: Base rent $ 183,749 $ 166,582 $ 532,039 $ 476,261 Recoveries from tenants 22,886 19,212 68,956 53,878 Parking and other 12,798 11,261 38,095 34,272 ------------- --------------- ------------- -------------- Total rental revenue 219,433 197,055 639,090 564,411 Development and management services 2,693 3,706 8,432 11,364 Interest and other 1,187 1,376 3,304 5,642 ------------- --------------- ------------- -------------- Total revenue 223,313 202,137 650,826 581,417 ------------- --------------- ------------- -------------- Expenses Operating 68,154 66,665 197,366 184,321 General and administrative 9,871 7,383 25,868 21,345 Interest 54,752 51,768 166,210 151,446 Depreciation and amortization 32,436 31,078 97,062 88,315 ------------- --------------- ------------- -------------- Total expenses 165,213 156,894 486,506 445,427 ------------- --------------- ------------- -------------- Income before minority interests and joint venture income 58,100 45,243 164,320 135,990 Minority interest in property partnership (245) (179) (681) (4,473) Income from unconsolidated joint ventures 549 206 1,356 648 ------------- --------------- ------------- -------------- Income before minority interest in Operating Partnership 58,404 45,270 164,995 132,165 Minority interest in Operating Partnership (19,627) (16,248) (56,505) (48,465) ------------- --------------- ------------- -------------- Income before gain (loss) on sales of real estate 38,777 29,022 108,490 83,700 Gain (loss) on sales of real estate, net (604) 50 (307) 50 ------------- --------------- ------------- -------------- Net income before preferred dividend 38,173 29,072 108,183 83,750 Preferred dividend (1,643) (1,654) (4,929) (4,175) ============= =============== ============= ============== Net income available to common shareholders $ 36,530 $ 27,418 $ 103,254 $ 79,575 ============= =============== ============= ============== Basic earnings per share: Net income available to common shareholders $ 0.53 $ 0.40 $ 1.51 $ 1.21 ============= =============== ============= ============== Weighted average number of common shares outstanding 68,752 67,901 68,568 65,672 ============= =============== ============= ============== Diluted earnings per share: Net income available to common shareholders $ 0.50 $ 0.40 $ 1.48 $ 1.20 ============= =============== ============= ============== Weighted average number of common and common equivalent shares outstanding 72,570 68,484 69,600 66,280 ============= =============== ============= ============== -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------- ---------------------- 2000 1999 2000 1999 --------- -------- --------- --------- Income before minority interests and joint venture income $ 58,100 $ 45,243 $ 164,320 $ 135,990 Add: Real estate depreciation and amortization 33,007 30,882 97,556 87,669 Income from unconsolidated joint ventures 549 206 1,356 648 Less: Minority property partnerships' share of Funds from Operations (284) (211) (774) (3,502) Preferred dividends and distributions (8,248) (8,303) (24,748) (23,808) --------- --------- ---------- ---------- Funds from operations $ 83,124 $ 67,817 $ 237,710 $ 196,997 ========= ========= ========== ========== Funds from operations available to common shareholders $ 61,543 $ 50,207 $ 175,526 $ 144,569 ========= ========= ========== ========== Weighted average shares outstanding - basic 68,752 67,901 68,568 65,672 ========= ========= ========== ========== Per share - basic $ 0.90 $ 0.74 $ 2.56 $ 2.20 ========= ========= ========== ========== Weighted average shares outstanding - diluted 83,657 81,485 82,600 76,674 ========= ========= ========== ========== Per share - diluted $ 0.85 $ 0.72 $ 2.46 $ 2.15 ========= ========= ========== ========== -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 [CONSOLIDATED BALANCE SHEET] BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2000 1999 -------------- ------------ (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) ASSETS Real estate: $ 5,782,961 $ 5,609,424 Less: accumulated depreciation (554,339) (470,591) ------------ ------------ Total real estate 5,228,622 5,138,833 Cash and cash equivalents 12,430 12,035 Escrows 29,509 40,254 Investments in securities 14,065 14,460 Tenant and other receivables, net 40,039 28,362 Accrued rental income, net 89,072 82,228 Deferred charges, net 74,743 53,733 Prepaid expenses and other assets 49,519 28,452 Investments in joint ventures 73,118 36,415 ============ ============ Total assets $ 5,611,117 $ 5,434,772 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 3,218,135 $ 2,955,584 Unsecured line of credit 235,000 366,000 Accounts payable and accrued expenses 59,542 66,780 Dividends and distributions payable 61,217 50,114 Accrued interest payable 5,951 8,486 Other liabilities 60,831 48,282 ------------ ------------ Total liabilities 3,640,676 3,495,246 ------------ ------------ Commitments and contingencies - - ------------ ------------ Minority interests 774,365 781,962 ------------ ------------ Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 ------------ ------------ Stockholders' equity: Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding - - Common stock, $.01 par value, 250,000,000 shares authorized, 69,317,999 and 67,910,434 issued and outstanding in 2000 and 1999, respectively 693 679 Additional paid-in capital 1,112,855 1,067,778 Dividends in excess of earnings (11,879) (10,893) Unearned compensation (901) - Accumulated other comprehensive loss (4,692) - ------------ ------------ Total stockholders' equity 1,096,076 1,057,564 ============ ============ Total liabilities and stockholders' equity $ 5,611,117 $ 5,434,772 ============ ============ -MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results October 16, 2000 BOSTON PROPERTIES, INC PORTFOLIO OCCUPANCY Occupancy by Location September 30, 2000 December 31, 1999 --------------------- --------------------- Greater Boston 98.0% 96.7% Greater Washington, D.C. 97.8% 96.4% Midtown Manhattan 99.2% 97.8% Baltimore, MD 100.0% 99.7% Richmond, VA 100.0% 98.0% Princeton/East Brunswick, NJ 99.4% 98.9% Greater San Francisco 98.5% 96.4% Bucks County, PA 100.0% 100.0% --------------------- --------------------- Total Portfolio 98.5% 97.1% ===================== ===================== Occupancy by Type September 30, 2000 December 31, 1999 --------------------- --------------------- Class A Office Portfolio 99.2% 97.7% R&D Portfolio 93.4% 93.0% Industrial Portfolio 89.6% 90.4% --------------------- --------------------- Total Portfolio 98.5% 97.1% ===================== ===================== ###