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): JULY 23, 2002 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.) 111 HUNTINGTON AVENUE 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 July 23, 2002 announcing the Company's results for the second quarter ended June 30, 2002, 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 June 30, 2002. 99.2 The Boston Properties, Inc. press release dated July 23, 2002 for the quarter ended June 30, 2002. 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: July 24, 2002 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde ------------------------------ By: Douglas T. Linde Chief Financial Officer
EXHIBIT 99.1 [BOSTON PROPERTIES LOGO] SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED JUNE 30, 2002 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 INDEX ================================================================================ 2
PAGE ---- COMPANY BACKGROUND 3 INVESTOR INFORMATION 4-5 FINANCIAL HIGHLIGHTS 6 CONSOLIDATED BALANCE SHEETS 7 CONSOLIDATED INCOME STATEMENTS 8 FUNDS FROM OPERATIONS 9 CAPITAL STRUCTURE 10 DEBT ANALYSIS 11-13 UNCONSOLIDATED JOINT VENTURES 14-15 PORTFOLIO OVERVIEW-SQUARE FOOTAGE 16 PROPERTY LISTING 17-20 TOP 20 TENANTS 21 PORTFOLIO OVERVIEW-FFO 22 OCCUPANCY ANALYSIS 23 OFFICE PROPERTIES-LEASE EXPIRATION ROLL OUT 24 OFFICE/TECHNICAL PROPERTIES-LEASE EXPIRATION ROLL OUT 25 INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 26 RETAIL PROPERTIES - LEASE EXPIRATION ROLL OUT 27 GRAND TOTAL - OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND RETAIL PROPERTIES 28 BOSTON AREA LEASE EXPIRATION ROLL OUT 29-30 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 31-32 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 33-34 NEW YORK AREA LEASE EXPIRATION ROLL OUT 35-36 PRINCETON AREA LEASE EXPIRATION ROLL OUT 37-38 OTHER AREA LEASE EXPIRATION ROLL OUT 39-40 HOTEL PERFORMANCE 41 SAME PROPERTY PERFORMANCE 42 IN-SERVICE PROPERTY PERFORMANCE 43 CAPITAL EXPENDITURES 44 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 45 VALUE CREATION PIPELINE - DEVELOPMENT 46 VALUE CREATION PIPELINE - LAND PARCELS 47 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 COMPANY BACKGROUND ================================================================================ Boston Properties, Inc., a self-administered and self-managed real estate investment trust, is one of the largest owners, managers and developers of first-class office properties in the United States, with a significant presence in four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. Boston Properties was founded in 1970 in Boston, where it maintains its headquarters. The Company acquires, develops and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco and Princeton, New Jersey. Its property portfolio primarily comprises first-class office space and also includes hotels and industrial buildings. Since the Company's initial offering in June 1997, the Company has acquired 50 properties adding approximately 18.4 million square feet to its portfolio, representing an investment of approximately $4.7 billion, and the Company has delivered 31 development properties adding approximately 6.4 million square feet to its portfolio, representing an investment of approximately $1.4 billion. In addition, the Company is constructing 9 office properties for a total anticipated investment of approximately $1.1 billion. The Company owns or controls land where it can develop an additional 8.9 million square feet. 3 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 INVESTOR INFORMATION ================================================================================ 111 Huntington Avenue Boston, MA 02199-7610 (617) 236-3300 (617) 236-3311 (fax) TIMING QUARTERLY RESULTS FOR 2002 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING ANTICIPATED SCHEDULE: THIRD QUARTER LATE OCTOBER FOURTH QUARTER LATE JANUARY 4
KEY EMPLOYEES: Mortimer B. Zuckerman Chairman of the Board Edward H. Linde President, CEO and Director Robert E. Burke Executive Vice President, Operations Douglas T. Linde Senior Vice President, CFO and Treasurer BOSTON PROPERTIES, INC. SECOND QUARTER 2002 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): (1) REFLECTS DIVIDEND INCREASE FROM $0.50 PER SHARE TO $0.61 PER SHARE EFFECTIVE Q2 2002. 5
2ND QUARTER 2002 1ST QUARTER 2002 4TH QUARTER 2001 3RD QUARTER 2001 ---------------- ---------------- ---------------- ---------------- HIGH PRICE $ 41.5500 $ 39.8200 $ 38.4100 $ 41.2600 LOW PRICE $ 37.8800 $ 35.9800 $ 34.3300 $ 36.2000 CLOSING PRICE $ 39.9500 $ 39.4500 $ 38.0000 $ 38.1300 DIVIDENDS PER SHARE - ANNUALIZED (1) $ 2.44 $ 2.32 $ 2.32 $ 2.32 CLOSING DIVIDEND YIELD - ANNUALIZED 6.11% 5.88% 6.11% 6.08% CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 125,017 124,761 124,630 124,644 CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $ 4,994,429 $ 4,921,821 $ 4,735,940 $ 4,752,676 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 FINANCIAL HIGHLIGHTS ================================================================================ (UNAUDITED AND IN THOUSANDS) (1) Includes a refund of $1,300 related to prior years' tax matter. (2) Includes non-cash early surrender lease income of $12,445. (3) FAD is defined as FFO after adjustments for second generation lease commissions and tenant improvements, recurring capital expenditures, straight-line rents, preferred dividends and distributions and other non-cash charges. (4) Amortization of financing costs were $1,346, $1,309, $970 and $960 for the quarters ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001, respectively. These amounts were not included in the calculation of interest coverage ratio. 6
THREE MONTHS ENDED ---------------------------------------------------------------------- JUNE 30, 2002 MARCH 31, 2002 DECEMBER 31, 2001 SEPTEMBER 30, 2001 ------------- -------------- ----------------- ------------------ INCOME ITEMS: - ------------- Revenue $ 290,015(1) $ 274,320 $ 264,964 $ 275,959(2) Net straight line rent $ 12,216 $ 14,784 $ 9,215 $ 6,400 Lease termination fees $ 1,227 $ 511 $ 397 $ 4,857 Capitalized interest $ 5,261 $ 7,847 $ 12,739 $ 14,740 Net income available to common shareholders before net derivative losses (SFAS No.133) $ 58,714 $ 55,613 $ 56,980 $ 65,083 Funds from operations (FFO) before net derivative losses (SFAS No.133) and early surrender lease income - basic $ 120,263 $ 108,820 $ 110,942 $ 106,108 Company's share $ 98,165 $ 88,929 $ 90,704 $ 86,627 FFO before net derivative losses (SFAS 133) and after early surrender lease income per share - basic $ 1.07 $ 0.98 $ 1.00 $ 0.96 FFO before net derivative losses (SFAS 133) and after early surrender lease income per share - diluted $ 1.02 $ 0.93 $ 0.95 $ 0.91 Dividends per share $ 0.61 $ 0.58 $ 0.58 $ 0.58 Funds available for distribution (FAD) (3) $ 87,470 $ 81,799 $ 91,828 $ 73,157 RATIOS: - ------- Interest Coverage Ratio (excluding capitalized interest) - cash basis (4) 2.71 2.57 2.81 3.04 Interest Coverage Ratio (including capitalized interest) - cash basis (4) 2.51 2.29 2.31 2.43 FFO Payout Ratio 59.80% 62.37% 61.05% 63.74% FAD Payout Ratio 78.15% 78.92% 70.10% 88.01% JUNE 30, 2002 MARCH 31, 2002 DECEMBER 31, 2001 SEPTEMBER 30, 2001 ------------- -------------- ----------------- ------------------ CAPITALIZATION: - --------------- Total Debt - Mortgage Notes and Bonds Payable $ 4,415,724 $ 4,361,233 $ 4,314,942 $ 4,245,433 Price @ Quarter End $ 39.9500 $ 39.4500 $ 38.0000 $ 38.1300 Equity Value @ Quarter End $ 4,994,429 $ 4,921,821 $ 4,735,940 $ 4,752,676 Total Market Capitalization $ 9,410,153 $ 9,283,054 $ 9,050,882 $ 8,998,109 Debt/Total Market Capitalization 46.93% 46.98% 47.67% 47.18% BOSTON PROPERTIES, INC. SECOND QUARTER 2002 CONSOLIDATED BALANCE SHEETS ================================================================================ (IN THOUSANDS) 7
JUNE 30, 2002 MARCH 31, 2002 DECEMBER 31, 2001 SEPTEMBER 30, 2001 ------------- -------------- ----------------- ------------------ ASSETS (unaudited) (unaudited) (unaudited) Real estate $ 6,972,779 $ 6,573,532 $ 6,167,399 $ 6,147,543 Development in progress 435,125 733,710 1,107,835 984,962 Land held for future development 199,681 206,098 182,672 165,475 Less accumulated depreciation (795,852) (755,156) (719,854) (683,029) ------------- -------------- ----------------- ------------------ Total real estate 6,811,733 6,758,184 6,738,052 6,614,951 Cash and cash equivalents 59,616 71,007 98,067 161,011 Escrows 44,800 45,216 23,000 20,901 Investments in securities - - 4,297 4,297 Tenant and other receivables, net 31,298 36,846 43,546 41,087 Accrued rental income, net 146,100 133,885 119,494 110,441 Deferred charges, net 148,239 127,948 107,573 104,370 Prepaid expenses and other assets 16,081 30,235 20,996 46,303 Investments in unconsolidated joint ventures 100,804 98,071 98,485 90,160 ------------- -------------- ----------------- ------------------ TOTAL ASSETS $ 7,358,671 $ 7,301,392 $ 7,253,510 $ 7,193,521 ============= ============== ================= ================== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $ 4,415,724 $ 4,361,233 $ 4,314,942 $ 4,245,433 Unsecured Line of Credit - - - - Accounts payable and accrued expenses 52,655 56,125 81,108 71,716 Dividends and distributions payable 83,707 79,985 79,561 79,005 Interest rate contracts 11,568 8,635 11,147 32,136 Accrued interest payable 17,635 15,032 9,080 15,679 Other liabilities 65,142 75,465 58,859 52,969 ------------- -------------- ----------------- ------------------ Total liabilities 4,646,431 4,596,475 4,554,697 4,496,938 ------------- -------------- ----------------- ------------------ Commitments and contingencies - - - - ------------- -------------- ----------------- ------------------ Minority interests 825,730 829,687 844,740 847,232 ------------- -------------- ----------------- ------------------ Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 100,000 100,000 ------------- -------------- ----------------- ------------------ 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, 91,545,294, 91,137,874, 90,780,591 and 90,720,477 issued and outstanding, respectively 915 911 908 907 Additional paid-in capital 1,821,762 1,809,836 1,789,521 1,784,850 Dividends in excess of earnings (16,152) (15,084) (17,669) (20,296) Treasury common stock, at cost (2,722) (2,722) (2,722) - Unearned compensation (3,598) (3,843) (2,097) (2,242) Accumulated other comprehensive loss (13,695) (13,868) (13,868) (13,868) ------------- -------------- ----------------- ------------------ Total stockholders' equity 1,786,510 1,775,230 1,754,073 1,749,351 ------------- -------------- ----------------- ------------------ TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,358,671 $ 7,301,392 $ 7,253,510 $ 7,193,521 ============= ============== ================= ================== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 CONSOLIDATED INCOME STATEMENTS ================================================================================ (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) (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 revenue by $12,216, $14,784, $9,215 and $6,400 for the three months ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001, respectively. (2) Includes a refund of $1,300 related to prior years' tax matter. (3) Includes a $2.8 million write-off of leasing costs related to the termination of the lease with Arthur Andersen. (4) Interest expense is reported net of capitalized interest of $5,261, $7,847, $12,739 and $14,740 for the three months ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001, respectively. (5) Equals minority interest percent of 18.37%, 18.28%, 18.24% and 18.36%, respectively of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001, respectively. 8
THREE MONTHS ENDED --------------------------------------------- 30-JUN-02 31-MAR-02 31-DEC-01 30-SEP-01 --------- --------- --------- --------- Revenue: Rental Base Rent (1) $ 242,846 $ 229,106 $ 220,701 $ 231,296 Recoveries from tenants 30,112 27,712 26,799 27,277 Parking and other 12,458 12,096 11,757 12,965 --------- --------- --------- --------- Total rental revenue 285,416 268,914 259,257 271,538 Development and management services 2,289 4,134 3,878 2,805 Interest and other (2) 2,310 1,272 1,829 1,616 --------- --------- --------- --------- Total revenue 290,015 274,320 264,964 275,959 --------- --------- --------- --------- Expenses: Operating 86,866 85,089 83,403 81,259 General and administrative (3) 13,564 11,069 8,663 9,819 Interest (4) 67,327 63,787 59,730 59,936 Depreciation and amortization 43,796 42,944 40,020 38,315 Loss on investments in other companies - 4,297 - - --------- --------- --------- --------- Total expenses 211,553 207,186 191,816 189,329 --------- --------- --------- --------- Income before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures 78,462 67,134 73,148 86,630 Net derivative losses (SFAS No.133) (4,826) (303) (2,080) (16,620) Minority interest in property partnerships 712 471 456 374 Income from unconsolidated joint ventures 1,659 1,682 1,345 997 --------- --------- --------- --------- Income before minority interest in Operating Partnership 76,007 68,984 72,869 71,381 Minority interest in Operating Partnership (5) (19,589) (18,386) (19,107) (18,851) --------- --------- --------- --------- Income before gain on sale, net of minority interest 56,418 50,598 53,762 52,530 Gain on sale of real estate, net - - 2,584 - --------- --------- --------- --------- Income before discontinued operations 56,418 50,598 56,346 52,530 Income from discontinued operations, net of minority interest - 570 582 638 Gain on sale of real estate from discontinued operations, net of minority interest - 5,840 - - --------- --------- --------- --------- Income before preferred dividend 56,418 57,008 56,928 53,168 Preferred dividend (1,643) (1,643) (1,648) (1,653) --------- --------- --------- --------- Net income available to common shareholders $ 54,775 $ 55,365 $ 55,280 $ 51,515 ========= ========= ========= ========= INCOME PER SHARE OF COMMON STOCK (EPS) ================================================================== Net income available to common shareholders per share - basic $ 0.60 $ 0.61 $ 0.61 $ 0.57 ========= ========= ========= ========= Net income available to common shareholders per share - diluted $ 0.59 $ 0.60 $ 0.60 $ 0.56 ========= ========= ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 FUNDS FROM OPERATIONS ================================================================================ (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS ================================================================================
THREE MONTHS ENDED --------------------------------------------- 30-JUN-02 31-MAR-02 31-DEC-01 30-SEP-01 --------- --------- --------- --------- Income from operations before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures $ 78,462 $ 67,134 $ 73,148 $ 86,630 Add: Real estate depreciation and amortization (1) 45,032 44,499 41,034 39,360 Income from discontinued operations - 697 712 781 Income from unconsolidated joint ventures 1,659 1,682 1,345 997 Less: Net derivative losses (SFAS No.133) 4,826 303 2,080 16,620 Minority property partnership's share of funds from operations 593 719 776 832 Preferred dividends and distributions 8,223 8,400 8,448 8,383 --------- --------- --------- --------- Funds from operations (FFO) 111,511 104,590 104,935 101,933 Add (subtract): Net derivative losses (SFAS No.133) 4,826 303 2,080 16,620 Early surrender lease payments received - contractual basis 3,926 3,927 3,927 (12,445) --------- --------- --------- --------- FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $ 120,263 $ 108,820 $ 110,942 $ 106,108 ========= ========= ========= ========= FFO available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease payments received (3) $ 98,165 $ 88,929 $ 90,704 $ 86,627 ========= ========= ========= ========= FFO per share before net derivative losses (SFAS No.133) and after cash basis early surrender lease income - basic $ 1.07 $ 0.98 $ 1.00 $ 0.96 ========= ========= ========= ========= Weighted average shares outstanding - basic 91,357 90,932 90,737 90,519 ========= ========= ========= ========= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 1.02 $ 0.93 $ 0.95 $ 0.91 ========= ========= ========= ========= FFO per share after net derivative losses (SFAS No.133) and before early surrender lease payments received - diluted $ 0.95 $ 0.90 $ 0.90 $ 0.87 ========= ========= ========= ========= Weighted average shares outstanding - diluted 105,982 105,768 105,577 105,812 ========= ========= ========= ========= (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,947, $2,187, $1,380 and $1,394 less corporate related depreciation of $711, $632, $576 and $552 for the three months ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001, respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001 was 81.63%, 81.72%, 81.79% and 81.64%, respectively. (3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended June 30, 2002, March 31, 2002, December 31, 2001 and September 30, 2001 was 83.75%, 83.87%, 83.91% and 83.87%, respectively. 9
June 30, 2002 March 31, 2002 --------------------------------------------------------- Income Shares Income Shares (Numerator) (Denominator) (Numerator) (Denominator) ----------- ------------- ----------- ------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income $ 120,263 111,923 $ 108,820 111,272 Effect of Dilutive Securities Convertible Preferred Units 6,580 10,342 6,757 10,823 Convertible Preferred Stock 1,643 2,625 1,643 2,625 Stock Options and other - 1,659 - 1,387 ----------- ------------- ----------- ------------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $ 128,486 126,549 $ 117,220 126,107 =========== ============= =========== ============= Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received (2) $ 107,605 105,982 $ 98,314 105,768 =========== ============= =========== ============= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 1.07 $ 0.98 =========== =========== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 1.02 $ 0.93 =========== =========== December 31, 2001 September 30, 2001 --------------------------------------------------------- Income Shares Income Shares (Numerator) (Denominator) (Numerator) (Denominator) ----------- ------------- ----------- ------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income $ 110,942 110,982 $ 106,108 110,876 Effect of Dilutive Securities Convertible Preferred Units 6,800 11,011 6,730 11,011 Convertible Preferred Stock 1,648 2,625 1,653 2,625 Stock Options and other - 1,205 - 1,657 ----------- ------------- ----------- ------------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $ 119,390 125,823 $ 114,491 126,169 =========== ============= =========== ============= Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received (2) $ 100,179 105,577 $ 96,017 105,812 =========== ============= =========== ============= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 1.00 $ 0.96 =========== =========== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 0.95 $ 0.91 =========== =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 CAPITAL STRUCTURE ================================================================================ DEBT - -------------------------------------------------------------------------------- (IN THOUSANDS) (1) Does not include joint venture debt outstanding. See page 15 for detailed joint venture information. EQUITY - -------------------------------------------------------------------------------- (IN THOUSANDS)
AGGREGATE PRINCIPAL JUNE 30, 2002 ------------------- Mortgage Notes and Bonds Payable $ 4,415,724 Unsecured Line of Credit - ------------------- Total Debt (1) $ 4,415,724 =================== (1) Value based on June 30, 2002 closing price of $39.95 10
COMMON SHARES & UNITS STOCK OUTSTANDING EQUIVALENTS EQUIVALENT (1) -------------- ----------- -------------- Common Stock 91,545 91,545 $ 3,657,223 Preferred Stock 2,000 2,625 104,869 Operating Partnership Units 20,513 20,513 819,494 Preferred Operating Partnership Units 8,666 10,334 412,843 ----------- -------------- Total Equity 125,017 $ 4,994,429 =========== ============== Total Market Capitalization $ 9,410,153 ============== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 DEBT ANALYSIS ================================================================================ DEBT MATURITIES AND PRINCIPAL PAYMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS) UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003 - -------------------------------------------------------------------------------- (IN THOUSANDS)
2002 2003 2004 2005 2006 THEREAFTER TOTAL --------- --------- --------- --------- --------- ------------ ----------- Amount $ 273,811 $ 886,371 $ 339,001 $ 277,880 $ 284,516 $ 2,354,145 $ 4,415,724 Average Rate 3.91% 5.59% 4.96% 7.05% 7.79% 7.11% 6.48% UNSECURED AND SECURED DEBT ANALYSIS - --------------------------------------------------------------------------------
OUTSTANDING LETTERS OF REMAINING FACILITY @6/30/02 CREDIT CAPACITY ---------- ----------- ---------- ---------- $ 605,000 $ - $ 3,470 $ 601,530 FLOATING AND FIXED RATE DEBT ANALYSIS - --------------------------------------------------------------------------------
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Unsecured Debt 0.00% 0.00% 0.8 years Secured Debt 100.00% 6.48% 5.0 years --------- ------------ ---------------- Total Debt 100.00% 6.48% 5.0 years ========= ============ ================ 11
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 22.40% 3.70% 1.0 years Fixed Rate Debt 77.60% 7.28% 6.2 years --------- ------------ ---------------- Total Debt 100.00% 6.48% 5.0 years ========= ============ ================ BOSTON PROPERTIES, INC. SECOND QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS ================================================================================ (IN THOUSANDS) (1) Represents the period from July 1, 2002 through December 31, 2002. 12
PROPERTY 2002 (1) 2003 2004 2005 2006 THEREAFTER TOTAL - ----------------------------------------------- ---------- ---------- ---------- ----------- --------- ---------- ---------- Citigroup Center $ 2,731 $ 5,763 $ 6,191 $ 6,651 $ 7,145 $ 490,928 $ 519,409 5 Times Square - 351,009 - - - - 351,009 Embarcadero Center One, Two and Federal Reserve 2,139 4,498 4,809 5,141 5,496 284,789 306,872 Prudential Center 1,659 4,299 4,591 4,919 5,256 265,325 286,049 280 Park Avenue 1,322 2,800 3,022 3,261 3,519 252,592 266,516 599 Lexington Avenue - - - 225,000 - - 225,000 111 Huntington Avenue 196,245 - - - - - 196,245 Times Square Tower - - 170,751 - - - 170,751 Embarcadero Center Four 1,560 3,315 3,544 3,797 4,061 134,058 150,335 875 Third Avenue 988 146,766 - - - - 147,754 Embarcadero Center Three 1,050 2,206 2,351 2,506 2,671 132,726 143,510 Two Independence Square 642 113,808 - - - - 114,450 Riverfront Plaza 1,081 2,720 2,905 3,104 3,314 98,867 111,991 Democracy Center 866 1,828 1,961 2,103 2,257 96,150 105,165 Embarcadero Center West Tower 689 1,449 1,546 1,649 90,416 - 95,749 100 East Pratt Street 871 1,836 1,964 2,100 2,246 80,511 89,528 601 and 651 Gateway Boulevard 388 826 899 977 1,062 84,721 88,873 One Independence Square - 75,000 - - - - 75,000 Reservoir Place 1,356 2,859 3,061 3,279 60,067 - 70,622 One & Two Reston Overlook 386 818 65,908 - - - 67,112 2300 N Street - 66,000 - - - - 66,000 202, 206 & 214 Carnegie Center 288 610 663 719 780 59,061 62,121 New Dominion Technology Park, Building One 40 102 91 654 1,282 55,420 57,589 Capital Gallery 608 1,293 1,404 1,524 50,651 - 55,480 Waltham Weston Corporate Center - - 53,601 - - - 53,601 504, 506 & 508 Carnegie Center 379 979 1,052 1,136 1,221 42,229 46,996 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS ================================================================================ (IN THOUSANDS) (1) Represents the period from July 1, 2002 through December 31, 2002. 13
PROPERTY 2002 (1) 2003 2004 2005 2006 THEREAFTER TOTAL - ----------------------------------------------- ---------- ---------- ---------- ----------- --------- ---------- ---------- 10 & 20 Burlington Mall Road 353 641 688 741 795 36,444 39,662 10 Cambridge Center 219 559 607 659 715 32,213 34,972 1301 New York Avenue 574 1,217 1,315 1,417 1,531 25,061 31,115 Sumner Square 228 481 518 557 599 27,581 29,964 2600 Tower Oaks Boulevard 29,457 - - - - - 29,457 Quorum Office Park - 29,041 - - - - 29,041 Eight Cambridge Center 243 516 557 601 649 25,188 27,754 510 Carnegie Center 211 547 588 635 683 24,255 26,919 Lockheed Martin Building 284 601 641 685 732 22,581 25,524 Orbital Sciences - Phase I 25,473 - - - - - 25,473 University Place 259 655 702 752 806 21,203 24,377 Reston Corporate Center 271 574 612 654 698 21,268 24,077 Orbital Sciences - Phase II - 23,611 - - - - 23,611 191 Spring Street 161 407 443 482 20,773 - 22,266 Bedford Business Park 249 634 690 751 818 17,749 20,891 NIMA Building 234 497 530 566 604 18,430 20,861 40 Shattuck Road - 15,818 - - - - 15,818 Shaws Supermarket - 12,080 - - - - 12,080 101 Carnegie Center 137 348 375 406 6,622 - 7,888 Montvale Center 75 160 173 189 6,762 - 7,359 302 Carnegie Center - 6,969 - - - - 6,969 Hilltop Business Center 75 187 200 214 230 4,581 5,487 201 Carnegie Center 20 44 48 51 55 214 432 ---------- ---------- ---------- ----------- --------- ---------- ---------- $ 273,811 $ 886,371 $ 339,001 $ 277,880 $ 284,516 $2,354,145 $4,415,724 ========== ========== ========== =========== ========= ========== ========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 UNCONSOLIDATED JOINT VENTURES ================================================================================ MISCELLANEOUS BALANCE SHEET INFORMATION - -------------------------------------------------------------------------------- (UNAUDITED AND IN THOUSANDS) AS OF JUNE 30, 2002 RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- FOR THE THREE MONTHS ENDED JUNE 30, 2002
ONE MARKET 140 265 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN SQUARE NORTH SQUARE STREET STREET -------- ------------- ------------ --------- ----------- Total Equity (1) $ 113 $ 13,957 $ 31,906 $ 5,718 $ 20,974 ======== ============= ============ ========= =========== Mortgage/Construction loans payable (1) $ 19,037 $ 49,012 $ 70,104 $ 14,130 $ 18,900 ======== ============= ============ ========= =========== BXP's nominal ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% ======== ============= ============ ========= =========== 901 TWO DISCOVERY NEW YORK FREEDOM SQUARE (2) AVENUE (2) SQUARE (2) COMBINED ----------- ----------- --------- -------- Total Equity (1) $ 7,443 $ 13,628 $ 7,065 $100,804 =========== =========== ========= ======== Mortgage/Construction loans payable (1) $ 28,102 $ -- $ 27,532 $226,817 =========== =========== ========= ======== BXP's nominal ownership percentage 50.00% 25.00% 50.00% =========== =========== ========= (1) Represents the Company's share. (2) Property is currently under development. (3) The impact of the straight-line rent adjustment increased revenue by $1,752 for the three months ended June 30, 2002. (4) Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreements. 14
ONE MARKET 140 265 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN SQUARE NORTH SQUARE STREET STREET ------------ -------------- -------------- -------------- ------------- REVENUE Total revenue $ 3,665 $ 5,133 $ 6,021 $ 2,692 $ 2,744 ------------ -------------- -------------- -------------- ------------- EXPENSES Operating 921 1,514 1,901 384 1,087 ------------ -------------- -------------- -------------- ------------- NET OPERATING INCOME 2,744 3,619 4,120 2,308 1,657 Interest 1,482 1,894 2,857 1,067 508 Depreciation and amortization 744 630 1,202 350 669 ------------ -------------- -------------- -------------- ------------- NET INCOME $ 518 $ 1,095 $ 61 $ 891 $ 480 ============ ============== ============== ============== ============= BXP's share of net income $ 150(4) $ 548 $ 31 $ 311(4) $ 168 ============ ============== ============== ============== ============= BXP's share of Funds from Operations $ 631(4) $ 863 $ 644 $ 470(4) $ 402 ============ ============== ============== ============== ============= 901 TWO DISCOVERY NEW YORK FREEDOM SQUARE (2) AVENUE (2) SQUARE (2) COMBINED ------------ ------------ ----------- ----------- REVENUE Total revenue $ 1,926 $ - $ - $ 22,181(3) ------------ ------------ ----------- ----------- EXPENSES Operating 516 - - 6,323 ------------ ------------ ----------- ----------- NET OPERATING INCOME 1,410 - - 15,858 Interest 218 - - 8,026 Depreciation and amortization 291 - - 3,886 ------------ ------------ ----------- ----------- NET INCOME $ 901 $ - $ - $ 3,946 ============ ============ =========== =========== BXP's share of net income $ 451 $ - $ - $ 1,659 ============ ============ =========== =========== BXP's share of Funds from Operations $ 596 $ - $ - $ 3,606 ============ ============ =========== =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*) ================================================================================ DEBT MATURITIES AND PRINCIPAL PAYMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS) FLOATING AND FIXED RATE DEBT ANALYSIS - --------------------------------------------------------------------------------
2002 2003 2004 2005 2006 THEREAFTER TOTAL ------ -------- -------- ------- ------- ---------- --------- Amount $ 819 $ 48,852 $ 29,532 $ 2,165 $ 2,342 $ 143,107 $ 226,817 Average Rate 7.87% 3.55% 3.97% 7.89% 7.89% 7.94% 6.47% DEBT MATURITIES AND PRINCIPAL PAYMENTS BY PROPERTY - -------------------------------------------------------------------------------- (IN THOUSANDS)
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 32.86% 3.49% 1.6 years Fixed Rate Debt 67.14% 7.93% 8.6 years --------- ------------ ---------------- Total Debt 100.00% 6.47% 6.3 years ========= ============ ================ (*) All amounts represent the Company's share. (1) Boston Properties has a 51% interest in this property. (2) Boston Properties has a 50% interest in this property. (3) Boston Properties has a 25% interest in this property. (4) Boston Properties has a 35% interest in this property. 15
PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL - -------------------------- ------ -------- -------- ------- ------- ---------- --------- Metropolitan Square (1) $ 277 $ 704 $ 764 $ 830 $ 901 $ 66,628 $ 70,104 Market Square North (2) 375 795 858 927 1,001 45,056 49,012 Discovery Square (2) - 28,102 - - - - 28,102 Two Freedom Square (2) - - 27,532 - - - 27,532 One Freedom Square (3) 98 205 221 239 258 18,016 19,037 265 Franklin Street (4) - 18,900 - - - - 18,900 140 Kendrick Street (3) 69 146 157 169 182 13,407 14,130 ------ -------- -------- ------- ------- ---------- --------- $ 819 $ 48,852 $ 29,532 $ 2,165 $ 2,342 $ 143,107 $ 226,817 ====== ======== ======== ======= ======= ========== ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 PORTFOLIO OVERVIEW - SQUARE FOOTAGE ================================================================================ RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY - -------------------------------------------------------------------------------- HOTEL PROPERTIES - --------------------------------------------------------------------------------
GEOGRAPHIC AREA OFFICE (1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL - ----------------------------- ---------- ---------------- ---------- ----------- ---------- Greater Boston 7,474,309 (2) 545,206 152,009 8,171,524 26.48% Greater Washington 6,838,236 (3) 843,639 - 7,681,875 24.90% Greater San Francisco 4,452,622 144,366 280,213 4,877,201 15.81% Midtown Manhattan 5,571,905 - - 5,571,905 18.06% Princeton/East Brunswick, NJ 2,316,944 - - 2,316,944 7.51% Baltimore, MD 1,176,029 - - 1,176,029 3.81% Richmond, VA 900,586 - - 900,586 2.92% Bucks County, PA - - 161,000 161,000 0.52% ---------- ---------- --------- ---------- --------- 28,730,631 1,533,211 593,222 30,857,064 100.00% ========== ========== ========= ========== ========= % of Total 93.11% 4.97% 1.92% 100.00% STRUCTURED PARKING - --------------------------------------------------------------------------------
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 ======== ======= (1) Includes retail square footage of approximately 1,100,000. (2) Includes 343,913 square feet at 265 Franklin Street which is 35% owned by Boston Properties and 380,987 square feet at 140 Kendrick Street which is 25% owned by Boston Properties. (3) Includes 410,308 square feet at One Freedom Square which is 25% owned by Boston Properties, 587,217 square feet at Metropolitan Square which is 51% owned by Boston Properties, 401,279 square feet at Market Square North which is 50% owned by Boston Properties and 181,019 square feet at Discovery Square which is 50% owned by Boston Properties. 16
NUMBER OF SQUARE SPACES FEET --------- --------- TOTAL STRUCTURED PARKING 18,484 6,017,423 ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE PROPERTY LISTING ================================================================================ AS OF JUNE 30, 2002 (1) Not included in same property analysis (2) 93,852 square feet of space added in Q2 2002 is not included in the same property analysis. 17
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------------------------- --------- ----------- ---------- ----------- GREATER BOSTON Office 800 Boylston Street - The Prudential Center CBD Boston MA 1 1,175,218 92.6% $ 38.57 (1)111 Huntington Avenue - The Prudential Center CBD Boston MA 1 859,484 95.1% 45.47 101 Huntington Avenue - The Prudential Center CBD Boston MA 1 510,983 98.0% 39.20 (2)The Shops at the Prudential Center CBD Boston MA 1 559,666 88.8% 41.39 265 Franklin Street (35% ownership) CBD Boston MA 1 343,913 67.4% 54.75 One Cambridge Center East Cambridge MA 1 215,385 93.0% 43.88 Three Cambridge Center East Cambridge MA 1 107,484 100.0% 28.05 Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 31.76 Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 33.96 Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 42.75 University Place Mid-Cambridge MA 1 195,282 100.0% 34.72 Reservoir Place Route 128 Mass Turnpike MA 1 522,760 80.8% 35.38 204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 80.0% 30.79 140 Kendrick Street (25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 27.95 170 Tracer Lane Route 128 Mass Turnpike MA 1 73,203 55.1% 34.77 Waltham Office Center Route 128 Mass Turnpike MA 3 130,209 94.8% 29.77 195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 46.35 200 West Street Route 128 Mass Turnpike MA 1 248,048 100.0% 34.46 10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 86.4% 29.80 Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 20.55 32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 29.09 91 Hartwell Avenue Route 128 Northwest MA 1 121,215 86.4% 33.93 92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0% 51.71 100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 33.13 33 Hayden Avenue Route 128 Northwest MA 1 79,564 100.0% 39.03 Lexington Office Park Route 128 Northwest MA 2 167,293 86.7% 29.54 191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 30.86 181 Spring Street Route 128 Northwest MA 1 53,595 100.0% 36.41 201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 32.37 (1)40 Shattuck Road Route 128 Northwest MA 1 119,499 83.3% 26.98 (1)Quorum Office Park Route 128 Northwest MA 2 259,918 100.0% 17.60 Newport Office Park Route 128 South MA 1 168,829 100.0% 24.16 --------- ----------- --------- ----------- 39 7,474,309 92.5% $ 36.42 --------- ----------- --------- ----------- Office/Technical Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0% 19.48 Bedford Business Park Route 128 Northwest MA 2 383,704 100.0% 14.46 17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 10.25 164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 9.51 --------- ----------- --------- ----------- 5 545,206 100.0% $ 14.27 --------- ----------- --------- ----------- Industrial 40-46 Harvard Street Route 128 Southwest MA 1 152,009 100.0% $ 7.54 --------- ----------- --------- ----------- Total Greater Boston: 45 8,171,524 93.2% $ 34.26 ========= =========== ========= =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE PROPERTY LISTING ================================================================================ AS OF JUNE 30, 2002 (1) Not included in same property analysis (2) One of three buildings totaling 160,502 square feet is not included in the same property analysis 18
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ------------------------- ---------- ----------- ---------- ----------- GREATER WASHINGTON, DC Office 2300 N Street West End Washington DC 1 276,930 98.7% $ 53.45 One Independence Square Southwest Washington DC 1 337,794 100.0% 40.65 Two Independence Square Southwest Washington DC 1 579,665 100.0% 37.96 Capital Gallery Southwest Washington DC 1 396,894 100.0% 36.21 500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 32.39 Metropolitan Square (51% ownership) East End Washington DC 1 587,217 97.0% 37.96 1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.34 Market Square North (50% ownership) East End Washington DC 1 401,279 100.0% 44.26 Sumner Square CBD Washington DC 1 207,620 100.0% 34.07 Decoverly Two Montgomery County MD 1 77,747 100.0% 23.55 Decoverly Three Montgomery County MD 1 77,040 100.0% 25.20 Democracy Center Montgomery County MD 3 681,452 91.5% 29.20 Montvale Center Montgomery County MD 1 120,823 89.7% 23.12 (1)2600 Tower Oaks Boulevard Montgomery County MD 1 178,869 97.8% 32.04 (2)Orbital Sciences Campus Loudoun County 3 337,228 100.0% 22.96 The Arboretum Fairfax County VA 1 95,584 100.0% 25.71 One Freedom Square (25% ownership) Fairfax County VA 1 410,308 100.0% 33.26 One Reston Overlook Fairfax County VA 1 312,685 100.0% 22.15 Two Reston Overlook Fairfax County VA 1 131,594 77.4% 32.37 (1)One Discovery Square (50% ownership) Fairfax County VA 1 181,019 100.0% 35.61 New Dominion Technology Park Fairfax County VA 1 235,201 100.0% 27.19 Reston Corporate Center Fairfax County VA 2 261,046 100.0% 31.09 Lockheed Martin Building Fairfax County VA 1 255,244 100.0% 41.67 NIMA Building Fairfax County VA 1 263,870 100.0% 45.57 ---------- ----------- --------- ----------- 29 6,838,236 98.2% $ 34.64 ---------- ----------- --------- ----------- Office/Technical Sugarland Business Park, Building One Fairfax County VA 1 52,797 100.0% 22.57 Sugarland Business Park, Building Two Fairfax County VA 1 59,215 54.0% 21.15 7435 Boston Boulevard Fairfax County VA 1 103,557 82.3% 14.74 7451 Boston Boulevard Fairfax County VA 1 47,001 66.1% 15.39 7450 Boston Boulevard Fairfax County VA 1 62,402 100.0% 16.81 7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.90 8000 Grainger Court Fairfax County VA 1 90,465 100.0% 13.98 7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.89 7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 23.55 7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 14.28 7375 Boston Boulevard Fairfax County VA 1 26,865 87.1% 16.47 8000 Corporate Court Fairfax County VA 1 52,539 100.0% 9.80 (1)7300 Boston Boulevard Fairfax County VA 1 32,000 100.0% 20.25 ---------- ----------- --------- ----------- 13 843,639 92.3% $ 16.33 ---------- ----------- --------- ----------- Total Greater Washington: 42 7,681,875 97.5% $ 32.74 ========== =========== ========= =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE PROPERTY LISTING ================================================================================ AS OF JUNE 30, 2002 (1) Not included in same property analysis 19
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ------------------------------------ ---------- ----------- ---------- ----------- MIDTOWN MANHATTAN Office 599 Lexington Avenue Park Avenue NY 1 1,017,639 99.0% $ 58.75 280 Park Avenue Park Avenue NY 1 1,166,777 98.6% 51.32 (1)Citigroup Center Park Avenue NY 1 1,575,744 99.9% 55.51 (1)5 Times Square Times Square NY 1 1,099,754 97.5% 48.95 875 Third Avenue East Side NY 1 711,991 95.3% 53.71 ---------- ----------- --------- ----------- Total Midtown Manhattan: 5 5,571,905 98.4% $ 53.72 ========== =========== ========= =========== PRINCETON/EAST BRUNSWICK, NJ Office 101 Carnegie Center Princeton NJ 1 123,659 100.0% $ 27.45 104 Carnegie Center Princeton NJ 1 102,830 85.2% 31.59 105 Carnegie Center Princeton NJ 1 69,648 100.0% 28.80 201 Carnegie Center Princeton NJ - 6,500 100.0% 24.04 202 Carnegie Center Princeton NJ 1 128,705 100.0% 29.66 210 Carnegie Center Princeton NJ 1 161,112 100.0% 29.95 211 Carnegie Center Princeton NJ 1 47,025 100.0% 24.32 212 Carnegie Center Princeton NJ 1 148,233 100.0% 31.10 214 Carnegie Center Princeton NJ 1 152,214 96.4% 29.32 206 Carnegie Center Princeton NJ 1 161,763 100.0% 28.10 302 Carnegie Center Princeton NJ 1 65,135 85.5% 29.96 502 Carnegie Center Princeton NJ 1 116,374 95.3% 30.69 510 Carnegie Center Princeton NJ 1 234,160 100.0% 24.81 504 Carnegie Center Princeton NJ 1 121,990 100.0% 26.94 506 Carnegie Center Princeton NJ 1 135,624 56.4% 30.35 508 Carnegie Center Princeton NJ 1 131,085 100.0% 24.78 One Tower Center East Brunswick NJ 1 410,887 71.4% 32.07 ---------- ----------- --------- ----------- Total Princeton/East Brunswick, NJ: 16 2,316,944 90.8% $ 28.85 ========== =========== ========= =========== GREATER SAN FRANCISCO Office Embarcadero Center One CBD San Francisco CA 1 833,117 96.3% $ 43.74 Embarcadero Center Two CBD San Francisco CA 1 780,441 86.7% 47.97 Embarcadero Center Three CBD San Francisco CA 1 773,719 96.8% 43.09 Embarcadero Center Four CBD San Francisco CA 1 935,877 94.5% 63.17 Federal Reserve CBD San Francisco CA 1 149,592 100.0% 49.43 West Tower CBD San Francisco CA 1 473,427 98.9% 50.36 The Gateway South San Francisco CA 2 506,449 85.5% 38.42 ---------- ----------- --------- ----------- 8 4,452,622 93.5% $ 48.83 ---------- ----------- --------- ----------- Office/Technical ---------- ----------- --------- ----------- Hilltop Office Center South San Francisco CA 9 144,366 82.8% $ 15.36 ---------- ----------- --------- ----------- Industrial 560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 10.30 430 Rozzi Place South San Francisco CA 1 20,000 100.0% 11.66 2391 West Winton Hayward CA 1 220,213 100.0% 4.78 ---------- ----------- --------- ----------- 3 280,213 100.0% $ 6.06 ---------- ----------- --------- ----------- Total Greater San Francisco: 20 4,877,201 93.6% $ 45.33 ========== =========== ========= =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE PROPERTY LISTING ================================================================================ AS OF JUNE 30, 2002 20
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF --------------------------------- ---------- ----------- ---------- ----------- BALTIMORE, MD Office Candler Building Baltimore MD 1 540,706 97.3% $ 18.83 100 East Pratt Street Baltimore MD 1 635,323 98.2% 31.54 ---------- ----------- --------- ----------- Total Baltimore, MD: 2 1,176,029 97.8% $ 25.73 ========== =========== ========= =========== RICHMOND, VA Office Riverfront Plaza Richmond VA 1 900,586 93.1% $ 23.76 ========== =========== ========= =========== BUCKS COUNTY, PA Industrial 38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $ 4.57 ========== =========== ========= =========== Total In-Service Properties: 132 30,857,064 95.3% ========== =========== ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 TOP 20 TENANTS BY SQUARE FEET LEASED ================================================================================ MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT - --------------------------------------------------------------------------------
% OF TENANT SQ. FT. PORTFOLIO ------------------------------- ------------- ----------- 1 U.S. Government 2,294,441 7.44% 2 Ernst and Young 1,062,203 3.44% 3 Lockheed Martin Corporation 701,798 2.27% 4 Citibank, N.A. 639,971 2.07% 5 Shearman & Sterling 494,808 1.60% 6 Gillette Company 488,177 1.58% 7 Parametric Technology Corp. (1) 380,987 1.23% 8 Washington Group International 365,245 1.18% 9 Deutsche Bank 346,617 1.12% 10 Orbital Sciences Corporation 337,228 1.09% 11 TRW, Inc. 317,921 1.03% 12 Marsh USA Inc. 312,605 1.01% 13 Hunton & Williams 310,785 1.01% 14 Wachovia 308,826 1.00% 15 T. Rowe Price Associates, Inc. 304,129 0.99% 16 Digitas 279,182 0.90% 17 Accenture (1) 265,622 0.86% 18 Tellabs Operations, Inc. 259,918 0.84% 19 Covance, Inc. 258,831 0.84% 20 MediSense 253,704 0.82% (1) These tenants occupy space in a property in which Boston Properties has a 25% interest. (2) Includes 97,205 sf of space in a property in which Boston Properties has a 50% interest and the remainder in a property in which Boston Properties has a 25% interest. 21
TENANT SQ. FT. ------ ------- Finnegan Henderson Farabow Garrett & Dunner, LLP (2) 348,542 U.S. Government 257,400 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 PORTFOLIO OVERVIEW - FFO ================================================================================ PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS (1) FOR IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED JUNE 30, 2002 - -------------------------------------------------------------------------------- (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 and Embarcadero Center). 22
OFFICE/ GEOGRAPHIC AREA OFFICE (2) TECHNICAL INDUSTRIAL HOTEL TOTAL --------------- ---------- --------- ---------- ----- ------ Greater Boston 22.3% 0.8% 0.1% 3.2% 26.4% Greater Washington 17.6% 1.4% - - 19.0% Greater San Francisco 17.8% 0.2% 0.2% - 18.2% Midtown Manhattan 26.3% - - - 26.3% Princeton/East Brunswick, NJ 5.0% - - - 5.0% Baltimore, MD 2.9% - - - 2.9% Richmond, VA 2.1% - - - 2.1% Bucks County, PA - - 0.1% - 0.1% -------- -------- -------- ------ ------ Total 94.0% 2.4% 0.4% 3.2% 100.0% ======== ======== ======== ====== ====== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 OCCUPANCY ANALYSIS ================================================================================ SAME PROPERTY OCCUPANCY - BY LOCATION - -------------------------------------------------------------------------------- SAME PROPERTY - BY TYPE OF PROPERTY - --------------------------------------------------------------------------------
LOCATION 30-JUN-02 30-JUN-01 - -------- --------- --------- Greater Boston 93.3% 97.1% Greater Washington 97.4% 98.9% Midtown Manhattan 97.9% 99.7% Baltimore, MD 97.8% 99.8% Princeton/East Brunswick, NJ 90.8% 96.6% Richmond, VA 93.1% 99.6% Greater San Francisco 93.6% 95.0% Bucks County, PA 100.0% 100.0% --------- --------- Total Portfolio 95.0% 97.7% ========= ========= 23
30-JUN-02 30-JUN-01 --------- --------- Total Office Portfolio 94.9% 97.8% Total Office/Technical Portfolio 94.0% 99.7% Total Industrial Portfolio 100.0% 87.3% --------- --------- Total Portfolio 95.0% 97.7% ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE OFFICE PROPERTIES ================================================================================ LEASE EXPIRATIONS - -------------------------------------------------------------------------------- OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. ---------- --------------- --------------- ---------------------- 2002 469,439 $ 18,112,458 $ 38.58 2003 1,403,974 49,898,779 35.54 2004 2,222,395 86,149,006 38.76 2005 2,415,215 87,809,898 36.36 2006 3,469,248 140,989,322 40.64 2007 2,200,402 83,855,824 38.11 2008 1,346,798 54,756,533 40.66 2009 2,433,522 89,046,900 36.59 2010 1,231,518 55,820,281 45.33 2011 2,663,812 103,317,204 38.79 Thereafter 6,223,034 269,464,321 43.30 ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 18,079,594 $ 38.51 1.70% 2003 50,409,003 35.90 5.09% 2004 87,273,051 39.27 8.06% 2005 90,969,273 37.67 8.76% 2006 146,831,506 42.32 12.58% 2007 86,890,890 39.49 7.98% 2008 55,201,928 40.99 4.88% 2009 97,141,179 39.92 8.82% 2010 63,247,125 51.36 4.46% 2011 121,959,045 45.78 9.66% Thereafter 325,189,082 52.26 22.56% * Includes approximately 1,100,000 of retail square footage. 24
30-JUN-02 30-JUN-01 --------- --------- Greater Boston 92.5% 94.3% Greater Washington 98.2% 98.0% Midtown Manhattan 98.4% 99.8% Baltimore, MD 97.8% 99.8% Richmond, VA 93.1% 99.6% Princeton/East Brunswick, NJ 90.8% 96.6% Greater San Francisco 93.5% 96.0% Bucks County, PA n/a n/a --------- --------- Total Office Portfolio 95.3% * 97.1% * ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE OFFICE/TECHNICAL PROPERTIES ================================================================================ LEASE EXPIRATIONS - -------------------------------------------------------------------------------- OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. ---------- --------------- --------------- ---------------------- 2002 148,284 $ 2,643,714 $ 17.83 2003 89,531 1,449,537 16.19 2004 119,791 1,800,839 15.03 2005 137,814 1,961,986 14.24 2006 295,604 3,822,763 12.93 2007 197,595 3,534,321 17.89 2008 64,140 609,780 - 2009 - - - 2010 79,971 1,190,430 14.89 2011 137,321 2,373,162 17.28 Thereafter 203,112 3,441,327 16.94 ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 2,644,172 $ 17.83 9.67% 2003 1,458,537 16.29 5.84% 2004 1,867,833 15.59 7.81% 2005 2,102,926 15.26 8.99% 2006 4,358,965 14.75 19.28% 2007 3,910,770 19.79 12.89% 2008 641,850 - - 2009 - - - 2010 1,190,430 14.89 5.22% 2011 2,574,217 18.75 8.96% Thereafter 3,996,784 19.68 13.25% 25
30-JUN-02 30-JUN-01 --------- --------- Greater Boston 100.0% 100.0% Greater Washington 92.3% 98.0% Midtown Manhattan 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 82.8% 97.0% Bucks County, PA n/a n/a --------- --------- Total Office/Technical Portfolio 94.1% 98.5% ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE INDUSTRIAL PROPERTIES ================================================================================ LEASE EXPIRATIONS - -------------------------------------------------------------------------------- OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. ---------- --------------- --------------- ---------------------- 2002 23,904 $ 208,186 $ 8.71 2003 128,105 938,399 7.33 2004 160,213 763,217 4.76 2005 - - - 2006 161,000 736,000 - 2007 20,000 233,256 11.66 2008 60,000 289,224 - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 208,186 $ 8.71 4.03% 2003 938,399 7.33 21.59% 2004 801,668 5.00 27.01% 2005 - - - 2006 736,000 - 0.29 2007 258,183 12.91 3.37% 2008 325,524 - 0.11 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 26
30-JUN-02 30-JUN-01 --------- --------- Greater Boston 100.0% 89.8% Greater Washington n/a n/a Midtown Manhattan 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 100.0% 78.6% Bucks County, PA 100.0% 100.0% --------- --------- Total Industrial Portfolio 100.0% 87.3% ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE RETAIL PROPERTIES ================================================================================ LEASE EXPIRATIONS - -------------------------------------------------------------------------------- (1) Includes $1,010,533 (at expiration) of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 27
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. ---------- --------------- --------------- ---------------------- 2002 28,219 $ 2,369,481 $ 83.97 (1) 2003 195,407 5,720,979 29.28 2004 121,930 6,831,551 56.03 2005 99,859 3,923,877 39.29 2006 87,764 3,598,948 41.01 2007 72,251 3,247,508 44.95 2008 51,434 2,442,520 47.49 2009 40,202 1,632,929 40.62 2010 95,645 2,858,868 29.89 2011 41,041 2,474,914 60.30 Thereafter 352,397 15,042,807 42.69 ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 2,448,045 $ 86.75 2.46% 2003 5,761,492 29.48 17.02% 2004 6,921,781 56.77 10.62% 2005 4,090,883 40.97 8.70% 2006 3,644,827 41.53 7.64% 2007 3,699,727 51.21 6.29% 2008 2,610,886 50.76 4.48% 2009 1,751,869 43.58 3.50% 2010 3,973,620 41.55 8.33% 2011 2,868,437 69.89 3.57% Thereafter 18,641,357 52.90 30.69% BOSTON PROPERTIES, INC. SECOND QUARTER 2002 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES ================================================================================ LEASE EXPIRATIONS - -------------------------------------------------------------------------------- OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. ---------- --------------- --------------- ---------------------- 2002 669,846 $ 23,333,838 $ 34.83 2003 1,817,017 58,007,694 31.92 2004 2,624,329 95,544,613 36.41 2005 2,652,888 93,695,761 35.32 2006 4,013,616 149,147,033 37.16 2007 2,490,248 90,870,909 36.49 2008 1,522,372 58,098,058 38.16 2009 2,473,724 90,679,829 36.66 2010 1,407,134 59,869,580 42.55 2011 2,842,174 108,165,280 38.06 Thereafter 6,778,543 287,948,454 42.48 ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 23,379,997 $ 34.90 2.17% 2003 58,567,431 32.23 5.89% 2004 96,864,333 36.91 8.50% 2005 97,163,082 36.63 8.60% 2006 155,571,298 38.76 13.01% 2007 94,759,570 38.05 8.07% 2008 58,780,189 38.61 4.93% 2009 98,893,049 39.98 8.02% 2010 68,411,175 48.62 4.56% 2011 127,401,699 44.83 9.21% Thereafter 347,827,223 51.31 21.97% 28
30-JUN-02 30-JUN-01 --------- --------- Greater Boston 93.2% 94.6% Greater Washington 97.5% 98.0% Midtown Manhattan 98.4% 99.8% Baltimore, MD 97.8% 99.8% Richmond, VA 93.1% 99.6% Princeton/East Brunswick, NJ 90.8% 96.6% Greater San Francisco 93.6% 95.0% Bucks County, PA 100.0% 100.0% --------- --------- Total Portfolio 95.3% 97.0% ========= ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES ================================================================================ LEASE EXPIRATIONS - GREATER BOSTON - --------------------------------------------------------------------------------
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 ----------- --------------- --------------- -------------------- 2002 233,283 $ 7,427,655 $ 7,427,655 2003 236,668 8,063,732 8,075,922 2004 630,849 23,718,414 24,566,756 2005 920,508 35,877,227 36,743,475 2006 567,757 20,690,653 21,193,623 2007 360,291 15,172,824 16,085,794 2008 112,472 3,586,314 3,611,575 2009 936,074 33,896,871 36,947,067 2010 170,346 6,538,891 7,454,791 2011 758,984 26,430,066 31,542,876 Thereafter 1,279,951 47,319,029 57,734,883 OFFICE/TECHNICAL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 253,704 3,204,732 3,651,878 2007 80,000 1,076,626 1,419,126 2008 64,140 609,780 641,850 2009 - - - 2010 - - - 2011 80,000 1,576,152 1,776,152 Thereafter 67,362 1,312,022 1,618,519 (1) Includes $1,010,533 (at expiration) of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 29
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 ---------- --------------- --------------- -------------------- 2002 23,904 $ 208,186 $ 208,186 2003 128,105 938,399 938,399 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- 2002 11,418 $ 1,657,165 $ 1,735,729 2003 164,515 4,041,761 4,053,761 2004 71,761 4,883,092 4,889,585 2005 63,847 2,118,123 2,207,128 2006 32,862 1,551,855 1,558,535 2007 4,664 388,500 388,500 2008 5,466 427,825 427,825 2009 2,158 60,845 71,435 2010 37,110 713,161 1,492,471 2011 12,551 685,500 741,140 Thereafter 222,089 7,218,319 7,871,581 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES ================================================================================ QUARTERLY LEASE EXPIRATIONS - GREATER BOSTON - --------------------------------------------------------------------------------
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 ---------- --------------- --------------- -------------------- Q3 2002 24,986 $ 1,620,928 $ 1,620,928 Q4 2002 208,297 5,806,727 5,806,727 ------------ ---------------- ---------------- Total 2002 233,283 $ 7,427,655 $ 7,427,655 ============ ================ ================ Q1 2003 91,395 $ 3,391,914 $ 3,391,914 Q2 2003 67,868 2,035,695 2,035,695 Q3 2003 43,055 1,744,116 1,748,522 Q4 2003 34,350 892,007 899,791 ------------ ---------------- ---------------- Total 2003 236,668 $ 8,063,732 $ 8,075,922 ============ ================ ================ OFFICE/TECHNICAL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ---------------- --------------- -------------- Total 2002 - $ - $ - ================ =============== ============== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ---------------- --------------- -------------- Total 2003 - $ - $ - ================ =============== ============== 30
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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 23,904 208,186 208,186 ------------ ---------------- ---------------- Total 2002 23,904 $ 208,186 $ 208,186 ============ ================ ================ Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 128,105 938,399 938,399 Q4 2003 - - - ------------ ---------------- ---------------- Total 2003 128,105 $ 938,399 $ 938,399 ============ ================ ================ RETAIL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- Q3 2002 2,947 $ 339,029 $ 339,029 Q4 2002 8,471 1,318,135 1,396,699 ---------------- --------------- -------------- Total 2002 11,418 $ 1,657,165 $ 1,735,729 ================ =============== ============== Q1 2003 129,300 $ 475,712 $ 475,712 Q2 2003 - - - Q3 2003 1,650 145,067 145,067 Q4 2003 33,565 3,420,982 3,432,982 ---------------- --------------- -------------- Total 2003 164,515 $ 4,041,761 $ 4,053,761 ================ =============== ============== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE GREATER WASHINGTON 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 ---------- --------------- --------------- -------------------- 2002 66,698 $ 2,139,251 $ 2,176,328 2003 208,117 5,534,841 6,000,593 2004 248,594 8,977,492 9,318,467 2005 465,582 16,243,190 17,503,950 2006 903,269 36,851,382 38,980,533 2007 624,689 22,911,108 20,479,947 2008 416,132 16,672,522 13,357,213 2009 697,042 22,998,882 24,487,873 2010 454,833 17,542,365 20,823,261 2011 1,062,026 31,553,531 38,239,988 Thereafter 1,450,214 48,112,915 55,616,635 OFFICE/TECHNICAL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- 2002 131,598 $ 2,372,340 $ 2,372,340 2003 55,120 874,971 874,971 2004 67,791 1,190,159 1,226,493 2005 101,345 1,420,220 1,518,966 2006 33,400 508,999 563,495 2007 107,895 2,343,587 2,377,536 2008 - - - 2009 - - - 2010 79,971 1,190,430 1,190,430 2011 57,321 797,010 798,065 Thereafter 135,750 2,129,305 2,378,265 31
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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ------------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 2,162 $ 68,055 $ 68,055 2003 - - - 2004 4,360 193,353 197,713 2005 4,274 136,832 140,178 2006 3,309 115,200 115,684 2007 14,952 375,347 384,072 2008 16,338 575,463 670,555 2009 2,996 - - 2010 16,553 380,721 446,488 2011 11,221 466,553 528,386 Thereafter 30,630 750,662 1,129,202 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE GREATER WASHINGTON PROPERTIES ================================================================================ QUARTERLY 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 ---------- --------------- --------------- -------------------- Q3 2002 18,977 $ 554,868 $ 590,859 Q4 2002 47,721 1,584,383 1,585,468 ------------ ---------------- ---------------- Total 2002 66,698 $ 2,139,251 $ 2,176,328 ============ ================ ================ Q1 2003 10,922 $ 305,891 $ 305,891 Q2 2003 76,266 2,049,143 2,380,061 Q3 2003 99,243 2,595,117 2,705,480 Q4 2003 21,686 584,689 609,161 ------------ ---------------- ---------------- Total 2003 208,117 $ 5,534,841 $ 6,000,593 ============ ================ ================ OFFICE/TECHNICAL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- Q3 2002 77,434 $ 1,252,718 $ 1,252,718 Q4 2002 54,164 1,119,622 1,119,622 ---------------- --------------- -------------- Total 2002 131,598 $ 2,372,340 $ 2,372,340 ================ =============== ============== Q1 2003 - $ - $ - Q2 2003 23,439 351,284 351,284 Q3 2003 31,681 523,687 523,687 Q4 2003 - - - ---------------- --------------- -------------- Total 2003 55,120 $ 874,971 $ 874,971 ================ =============== ============== 32
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 ---------- ------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------- --------------- -------------- Total 2002 - $ - $ - ============= =============== ============== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------- --------------- -------------- Total 2003 - $ - $ - ============= =============== ============== RETAIL ----------------------------------------------------------------- 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 ---------- --------------- --------------- -------------------- Q3 2002 1,352 $ 40,286 $ 40,286 Q4 2002 810 27,770 27,770 --------------- --------------- -------------- Total 2002 2,162 $ 68,055 $ 68,055 =============== =============== ============== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - --------------- --------------- -------------- Total 2003 - $ - $ - =============== =============== ============== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 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 ---------- --------------- --------------- -------------------- 2002 97,162 $ 4,867,967 $ 4,867,967 2003 601,886 26,056,897 26,064,529 2004 634,854 29,092,696 28,923,247 2005 339,135 15,457,069 15,921,674 2006 904,582 44,388,551 46,281,393 2007 449,009 21,017,080 21,776,538 2008 161,895 6,674,240 6,870,824 2009 263,495 11,481,089 12,240,287 2010 169,761 10,382,847 12,257,770 2011 192,689 17,956,541 18,449,135 Thereafter 67,300 3,085,020 3,376,075 OFFICE/TECHNICAL ------------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 16,686 $ 271,374 $ 271,832 2003 34,411 574,566 583,567 2004 52,000 610,680 641,340 2005 36,469 541,766 583,961 2006 8,500 109,032 143,592 2007 9,700 114,108 114,108 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 33
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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 160,213 763,217 801,668 2005 - - - 2006 - - - 2007 20,000 233,256 258,183 2008 60,000 289,224 325,524 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ------------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 14,639 $ 618,740 $ 618,740 2003 26,062 1,333,127 1,343,945 2004 29,285 1,384,840 1,443,012 2005 26,823 1,238,241 1,277,257 2006 18,043 900,034 907,852 2007 26,649 1,466,980 1,666,332 2008 24,937 1,255,419 1,317,105 2009 35,048 1,572,084 1,680,434 2010 30,749 1,290,724 1,463,645 2011 3,474 194,944 229,226 Thereafter 28,325 1,552,373 2,025,953 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES ================================================================================ QUARTERLY 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 ---------- --------------- --------------- -------------------- Q3 2002 59,107 $ 2,281,528 $ 2,281,528 Q4 2002 38,055 2,586,439 2,586,439 ------------------ ------------------ ------------------- Total 2002 97,162 $ 4,867,967 $ 4,867,967 ================== ================== =================== Q1 2003 90,597 $ 3,616,477 $ 3,616,477 Q2 2003 168,036 8,439,865 8,439,865 Q3 2003 16,114 795,386 797,527 Q4 2003 327,139 13,205,169 13,210,660 ------------------ ------------------ ------------------- Total 2003 601,886 $ 26,056,897 $ 26,064,529 ================== ================== =================== OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 8,822 $ 146,965 $ 146,965 Q4 2002 7,864 124,409 124,867 ------------------ ------------------ -------------------- Total 2002 16,686 $ 271,374 $ 271,832 ================== ================== ==================== Q1 2003 7,755 $ 134,859 $ 134,859 Q2 2003 14,001 225,103 229,273 Q3 2003 9,047 147,648 150,528 Q4 2003 3,608 66,956 68,907 ------------------ ------------------ -------------------- Total 2003 34,411 $ 574,566 $ 583,567 ================== ================== ==================== 34
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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 1,848 $ 55,440 $ 55,440 Q4 2002 12,791 563,300 563,300 ------------------ ------------------ -------------------- Total 2002 14,639 $ 618,740 $ 618,740 ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 7,412 535,358 536,006 Q3 2003 1,317 83,385 83,385 Q4 2003 17,333 714,384 724,554 ------------------ ------------------ -------------------- Total 2003 26,062 $ 1,333,127 $ 1,343,945 ================== ================== ==================== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE MIDTOWN MANHATTAN PROPERTIES ================================================================================ LEASE EXPIRATIONS - MIDTOWN 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 ---------- --------------- --------------- -------------------- 2002 42,569 $ 2,933,793 $ 2,863,853 2003 87,831 3,823,691 3,823,691 2004 164,723 9,276,950 9,291,974 2005 65,687 3,498,387 3,520,037 2006 275,251 15,187,256 15,489,286 2007 178,176 9,786,194 10,872,654 2008 448,340 23,928,617 26,753,135 2009 254,179 13,534,011 15,020,102 2010 262,063 16,054,960 16,995,731 2011 390,554 19,753,680 25,232,160 Thereafter 3,179,584 163,819,824 200,280,940 OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 35
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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ------------------------------------------------------------ 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 ----------- --------------- --------------- -------------------- 2002 - $ 16,800 $ 16,800 2003 2,315 291,126 307,173 2004 3,800 245,794 266,573 2005 2,819 338,511 365,887 2006 17,700 775,686 806,582 2007 6,876 652,016 718,010 2008 3,232 152,562 169,104 2009 - - - 2010 10,608 459,508 551,880 2011 13,795 1,127,916 1,369,685 Thereafter 69,953 5,509,352 7,600,737 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE MIDTOWN MANHATTAN PROPERTIES ================================================================================ QUARTERLY LEASE EXPIRATIONS - MIDTOWN 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 ---------- --------------- --------------- -------------------- Q3 2002 12,416 $ 1,104,996 $ 1,035,056 Q4 2002 30,153 1,828,797 1,828,797 ------------------ ------------------ -------------------- Total 2002 42,569 $ 2,933,793 $ 2,863,853 ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 28,815 1,745,565 1,745,565 Q3 2003 59,016 2,078,126 2,078,126 Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 87,831 $ 3,823,691 $ 3,823,691 ================== ================== ==================== OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== 36
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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== =================== ==================== RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - 16,800 16,800 ------------------ ------------------ -------------------- Total 2002 - $ 16,800 $ 16,800 ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 1,515 62,780 64,220 Q4 2003 800 228,346 242,953 ------------------ ------------------ -------------------- Total 2003 2,315 $ 291,126 $ 307,173 ================== ================== ==================== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 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 ---------- --------------- --------------- -------------------- 2002 8,950 $ 267,457 $ 267,457 2003 100,226 2,750,771 2,750,771 2004 420,122 12,365,583 12,358,268 2005 225,352 6,834,162 6,916,066 2006 89,754 2,940,290 3,085,005 2007 502,230 13,352,128 14,769,053 2008 - - - 2009 155,012 4,669,314 5,409,592 2010 145,675 4,690,766 5,105,120 2011 254,941 7,504,255 8,358,206 Thereafter 210,759 6,181,396 6,709,661 OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 37
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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 10,541 48,000 48,000 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES ================================================================================ QUARTERLY 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 ---------- --------------- --------------- -------------------- Q3 2002 4,984 $ 146,968 $ 146,968 Q4 2002 3,966 120,488 120,488 ------------------ ------------------ -------------------- Total 2002 8,950 $ 267,457 $ 267,457 ================== ================== ==================== Q1 2003 8,734 $ 259,701 $ 259,701 Q2 2003 8,493 252,533 252,533 Q3 2003 11,302 309,629 309,629 Q4 2003 71,697 1,928,908 1,928,908 ------------------ ------------------ -------------------- Total 2003 100,226 $ 2,750,771 $ 2,750,771 ================== ================== ==================== OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== 38
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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 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 ---------- --------------- --------------- -------------------- 2002 20,777 $ 476,334 $ 476,334 2003 169,246 3,668,848 3,693,497 2004 123,253 2,717,872 2,814,339 2005 398,951 9,899,863 10,364,071 2006 728,635 20,931,190 21,801,665 2007 86,007 1,616,490 2,906,905 2008 207,959 3,894,840 4,609,180 2009 127,720 2,466,733 3,036,258 2010 28,840 610,452 610,452 2011 4,618 119,131 136,679 Thereafter 35,226 946,137 1,470,888 OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 39
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 ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 161,000 736,000 736,000 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- 2002 - $ 8,721 $ 8,721 2003 2,515 54,964 56,613 2004 2,183 76,472 76,899 2005 2,096 92,170 100,432 2006 15,850 256,173 256,173 2007 19,110 364,665 542,814 2008 1,461 31,251 26,298 2009 - - - 2010 625 14,754 19,135 2011 - - - Thereafter 1,400 12,100 13,884 BOSTON PROPERTIES, INC. SECOND QUARTER 2002 IN-SERVICE OTHER PROPERTIES ================================================================================ QUARTERLY 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 ---------- --------------- --------------- -------------------- Q3 2002 6,979 $ 113,805 $ 113,805 Q4 2002 13,798 362,529 362,529 ------------------ ------------------ -------------------- Total 2002 20,777 $ 476,334 $ 476,334 ================== ================== ==================== Q1 2003 41,400 $ 678,103 $ 678,103 Q2 2003 28,654 674,123 678,617 Q3 2003 23,106 486,649 496,321 Q4 2003 76,086 1,829,973 1,840,456 ------------------ ------------------ -------------------- Total 2003 169,246 $ 3,668,848 $ 3,693,497 ================== ================== ==================== OFFICE/TECHNICAL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== 40
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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - - - ------------------ ------------------ -------------------- Total 2002 - $ - $ - ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 - $ - $ - ================== ================== ==================== RETAIL ------------------------------------------------------------ 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 ---------- --------------- --------------- -------------------- Q3 2002 - $ - $ - Q4 2002 - 8,721 8,721 ------------------ ------------------ -------------------- Total 2002 - $ 8,721 $ 8,721 ================== ================== ==================== Q1 2003 - $ - $ - Q2 2003 - - - Q3 2003 2,515 54,964 56,613 Q4 2003 - - - ------------------ ------------------ -------------------- Total 2003 2,515 $ 54,964 $ 56,613 ================== ================== ==================== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 HOTEL PERFORMANCE ================================================================================
LONG WHARF MARRIOTT - BOSTON - ------------------------------------------------------------------------------------------------------------------------------- SECOND QUARTER SECOND QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE -------------- -------------- ------- -------- -------- ------- Occupancy 88.2% 83.3% (1) 5.9% 82.2% 77.1% (1) 6.6% Average Daily Rate $ 219.02 $ 257.04 -14.8% $ 200.41 $ 238.83 -16.1% REVPAR $ 193.25 $ 214.11 -9.7% $ 164.64 $ 184.14 -10.6% - -------------------------------------------------------------------------------------------------------------------------------
CAMBRIDGE CENTER MARRIOTT - ------------------------------------------------------------------------------------------------------------------------------- SECOND QUARTER SECOND QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE -------------- -------------- ------- -------- -------- ------- Occupancy 81.0% 84.3% -3.9% 73.3% 80.8% -9.3% Average Daily Rate $ 187.36 $ 212.08 -11.7% $ 173.90 $ 199.71 -12.9% REVPAR $ 151.70 $ 178.78 -15.1% $ 127.49 $ 161.37 -21.0% - -------------------------------------------------------------------------------------------------------------------------------
RESIDENCE INN BY MARRIOTT - ------------------------------------------------------------------------------------------------------------------------------- SECOND QUARTER SECOND QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE -------------- -------------- ------- -------- -------- ------- Occupancy 87.6% 88.3% -0.8% 84.0% 87.5% -4.0% Average Daily Rate $ 140.45 $ 174.42 -19.5% $ 133.15 $ 162.60 -18.1% REVPAR $ 123.08 $ 154.01 -20.1% $ 111.78 $ 142.28 -21.4% - ------------------------------------------------------------------------------------------------------------------------------- (1) Room renovation project underway during 2001. 41
TOTAL HOTEL PERFORMANCE - ------------------------------------------------------------------------------------------------------------------------------- SECOND QUARTER SECOND QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE -------------- -------------- ------- -------- -------- ------- Occupancy 85.1% 84.8% 0.4% 78.9% 80.8% -2.4% Average Daily Rate $ 189.60 $ 221.33 -14.3% $ 175.47 $ 206.85 -15.2% REVPAR $ 161.55 $ 187.06 -13.6% $ 138.37 $ 166.05 -16.7% - ------------------------------------------------------------------------------------------------------------------------------- BOSTON PROPERTIES, INC. SECOND QUARTER 2002 SAME PROPERTY PERFORMANCE ================================================================================ OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES - -------------------------------------------------------------------------------- SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED JUNE 30, 2002 - --------------------------------------------------------------------------------
OFFICE OFFICE/TECHNICAL INDUSTRIAL HOTEL TOTAL ---------- ----------------- ---------- ------- ---------- Number of Properties 91 26 5 3 125 Square feet 24,201,990 1,501,211 593,222 937,874 27,234,297 Percent of In-service properties 84.2% 97.9% 100.0% 100.0% 85.7% Occupancy @ 6/30/01 97.8% 99.7% 87.3% - 97.7% Occupancy @ 6/30/02 94.9% 94.0% 100.0% - 95.0% Percent change from 2nd quarter 2002 over 2nd quarter 2001 Revenue (1) 2.1% -2.9% 8.6% -16.1% 1.2% Expense 2.7% -10.2% -7.3% 31.8% 3.0% Net Operating Income (1) 1.8% -0.9% 13.7% -24.1% 0.4% Revenue - cash basis (1) 2.6% -4.3% 3.8% -16.1% 1.6% Net Operating Income - cash basis (1) 2.6% -2.6% 7.3% -24.1% 1.0% (1) Does not include termination and early surrender income. (2) 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.) 42
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL ---------- ---------------- ---------- ---------- Vacant space available @04/01/02 (sf) 1,282,423 45,268 60,000 1,387,691 Square footage of leases expiring or terminated 04/01/02-06/30/02 628,137 50,729 161,000 839,866 ---------- ---------------- ---------- ---------- Total space for lease (sf) 1,910,560 95,997 221,000 2,227,557 ========== ================ ========== ========== New tenants (sf) 530,220 5,000 60,000 595,220 Renewals (sf) 123,286 1,214 161,000 285,500 ---------- ---------------- ---------- ---------- Total space leased (sf) 653,506 6,214 221,000 880,720 ========== ================ ========== ========== Space available @ 6/30/02 (sf) 1,257,054 89,783 - 1,346,837 ========== ================ ========== ========== Net (increase)/decrease in available space (sf) 25,369 (44,515) 60,000 40,854 Average lease term (months) 106 33 37 88 2nd generation TI/Comm PSF $ 26.13 $ 1.68 $ 0.68 $ 19.40 Increase in 2nd generation net rents (2) 20.4% 5.4% 6.7% 19.9% BOSTON PROPERTIES, INC. SECOND QUARTER 2002 PROPERTY PERFORMANCE ALL IN-SERVICE PROPERTIES - QUARTER ENDED JUNE 30, 2002 - -------------------------------------------------------------------------------- (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). (2) Details of 1st and 2nd Generation Space:
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL ---------- ---------------- ---------- --------- Vacant space available @ 04/01/02 (sf) 1,375,299 45,268 60,000 1,480,567 New development sf completed 953,273 - - 953,273 Square footage of leases expiring or terminated 04/01/02-06/30/02 628,137 50,729 161,000 839,866 ---------- ---------------- ---------- --------- Total space for lease (sf) 2,956,709 95,997 221,000 3,273,706 ========== ================ ========== ========= New tenants (sf) 1,445,098 5,000 60,000 1,510,098 Renewals (sf) 123,286 1,214 161,000 285,500 ---------- ---------------- ---------- --------- Total space leased (sf) 1,568,384 6,214 221,000 1,795,598 (2) ========== ================ ========== ========= Space available @ 06/30/02 (sf) 1,388,325 89,783 - 1,478,108 ========== ================ ========== ========= Net (increase)/decrease in available space (sf) (13,026) (44,515) 60,000 2,459 Average lease term (months) 106 33 37 97 2nd generation TI/Comm PSF $ 26.18 $ 1.68 $ 0.68 $ 19.50 Increase in 2nd generation net rents (1) 21.0% 5.4% 6.7% 20.4% 43
Total 1st Generation 2nd Generation Leased -------------- -------------- --------- Boston 897,294 93,908 991,202 Washington 32,340 177,308 209,648 New York - 275,149 275,149 San Francisco - 114,066 114,066 Princeton - 205,533 205,533 -------------- -------------- --------- 929,634 865,964 1,795,598 ============== ============== ========= BOSTON PROPERTIES, INC. SECOND QUARTER 2002 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS ================================================================================ HISTORICAL CAPITAL EXPENDITURES - -------------------------------------------------------------------------------- (IN THOUSANDS) 2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS (2) - -------------------------------------------------------------------------------- (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Q2 2002 Q1 2002 2001 2000 ----------- ----------- ----------- ----------- Recurring capital expenditures $ 3,553 $ 2,946 $ 11,770 $ 11,201 Planned non-recurring capital expenditures associated with acquisition properties (1) 9,777 8,955 45,052 25,782 Hotel improvements, equipment upgrades and replacements 852 1,784 9,230 5,697 ----------- ----------- ----------- ----------- $ 14,182 $ 13,685 $ 66,052 $ 42,680 =========== =========== =========== =========== (1) Includes budgeted costs associated with the 18.4 million square feet of previously disclosed acquisitions. (2) Based on leases executed during the period. 44
Q2 2002 Q1 2002 2001 2000 ----------- ----------- ----------- ----------- Office Square feet 638,750 483,934 2,394,291 2,913,599 ----------- ----------- ----------- ----------- Tenant improvement and lease commissions p.s.f. $ 26.18 $ 20.95 $ 17.47 $ 13.82 ----------- ----------- ----------- ----------- Office/Technical Square feet 6,214 1,047 348,178 694,536 ----------- ----------- ----------- ----------- Tenant improvement and lease commissions p.s.f. $ 1.68 $ 1.02 $ 3.13 $ 2.95 ----------- ----------- ----------- ----------- Industrial Square feet 221,000 - - 209,125 ----------- ----------- ----------- ----------- Tenant improvement and lease commissions p.s.f. $ 0.68 $ - $ - $ 1.38 ----------- ----------- ----------- ----------- Average tenant improvement and lease commission p.s.f. $ 19.50 $ 20.91 $ 15.65 $ 11.16 =========== ============ ============ =========== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS ================================================================================ AS OF JUNE 30, 2002 ACQUISITIONS - -------------------------------------------------------------------------------- DISPOSITIONS - --------------------------------------------------------------------------------
ANTICIPATED INITIAL FUTURE TOTAL CURRENT PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY - -------- ------------- ----------- ------------ ---------- ----------- ----------- N/A ----------- ------------ ---------- ----------- ----------- TOTAL VALUE CREATION PIPELINE - - $ - $ - $ - - =========== ============ ========== =========== =========== ACQUISITIONS (1) The gain has been deferred for accounting purposes. (2) Property is currently under development and will be transferred to the buyer subsequent to completion of development. The gain of $1.9 million is an estimate based on the sales price of $8.9 million (of which $2.0 million has been received as of June 30, 2002) and an estimated total project cost of $7.0 million (of which $4.8 million has been incurred as of June 30, 2002). 45
NET PROPERTY DATE DISPOSED SQUARE FEET NET PROCEEDS BOOK VALUE GAIN - -------- ------------- ------------- -------------- ------------ ------------ Fullerton Square Mar-02 179,453 $ 22,193,973 $ 15,048,473 $ 7,145,500 7600 Boston Boulevard Mar-02 69,832 8,517,245 2,920,113 5,597,132 (1) 7700 Boston Boulevard Mar-02 82,224 16,428,227 10,415,656 6,012,571 (1) 7702 Boston Boulevard Mar-02 43,171 8,916,000 7,000,000 1,916,000 (1),(2) ------------- -------------- ------------ ------------ TOTAL DISPOSITIONS 374,680 $ 56,055,445 $ 35,384,242 $ 20,671,203 ============= ============== ============ ============ BOSTON PROPERTIES, INC. SECOND QUARTER 2002 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS ================================================================================ AS OF JUNE 30, 2002 ================================================================================
# OF DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION BUILDINGS SQUARE FEET - ---------------------- ----------------- ------------------ -------------------- --------- ----------- Two Discovery Square (50% ownership) Q2 2002 Q1 2003 Reston, VA 1 184,487 Broad Run Business Park- Building E Q2 2002 Q2 2003 Dulles, VA 1 127,226 Shaws Supermarket Q2 2003 Q2 2003 Boston, MA 1 57,235 Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA 1 304,050 New Dominion Tech, Building Two Q2 2004 Q2 2004 Herndon, VA 1 257,400 Two Freedom Square (50% ownership) Q3 2002 Q3 2004 Reston, VA 1 405,252 611 Gateway Boulevard Q4 2003 Q4 2004 S. San Francisco, CA 1 249,732 Times Square Tower Q1 2004 Q4 2004 New York, NY 1 1,218,511 901 New York Avenue (25% ownership) Q3 2004 Q4 2004 Washington, D.C. 1 538,464 --------- ----------- TOTAL DEVELOPMENT PROPERTIES 9 3,342,357 ========= =========== ANTICIPATED TOTAL AMOUNT DEVELOPMENT PROPERTIES INVESTMENT TOTAL CONSTRUCTION DRAWN AT - ---------------------- TO DATE INVESTMENT (1) LOAN JUNE 30, 2002 -------------- ---------------- -------------- -------------- Two Discovery Square (50% ownership) $ 16,088,984 $ 22,663,000 (2) $ 20,625,000 12,099,193 Broad Run Business Park- Building E 14,513,378 19,946,000 - - Shaws Supermarket 13,151,511 24,034,000 24,000,000 12,079,800 Waltham Weston Corporate Center 63,252,108 95,446,000 70,000,000 53,601,229 New Dominion Tech, Building Two 5,114,799 67,589,000 - - Two Freedom Square (50% ownership) 35,542,869 49,336,000 (2) 45,000,000 (2) 27,532,415 611 Gateway Boulevard 53,921,529 81,221,000 - - Times Square Tower 285,035,722 653,500,000 493,500,000 170,751,357 901 New York Avenue (25% ownership) 12,406,584 44,777,250 - - -------------- ---------------- -------------- -------------- TOTAL DEVELOPMENT PROPERTIES $ 499,027,484 $ 1,058,512,250 $ 653,125,000 $ 276,063,994 ============== ================ ============== ============== CURRENT FUTURE EQUITY PERCENTAGE REQUIREMENT LEASED -------------- -------------- Two Discovery Square (50% ownership) $ - 78% Broad Run Business Park- Building E 5,432,622 55% Shaws Supermarket - 100% Waltham Weston Corporate Center 15,795,121 19% New Dominion Tech, Building Two 62,474,201 100% Two Freedom Square (50% ownership) - 58% 611 Gateway Boulevard 27,299,471 0% Times Square Tower 45,715,635 0% 901 New York Avenue (25% ownership) 32,370,666 47% -------------- -------------- TOTAL DEVELOPMENT PROPERTIES $ 189,087,716 32% ============== ============== (1) Includes net revenues during lease-up period and cash component of hedge contracts. (2) Represents 50% of the total anticipated project-level investment and construction loan. 46
PLACED STABILIZATION # OF IN SERVICE DATE DATE LOCATION BUILDINGS SQUARE FEET --------------- ------------- --------------- ------------ ------------- CLASS A OFFICE BUILDING One Discovery Square (50% ownership) Q1 2002 Q1 2002 Reston, VA 1 181,019 ITT Educational Services Q1 2002 Q1 2002 Springfield, VA 1 32,000 5 Times Square Q1 2002 Q1 2002 New York, NY 1 1,099,754 111 Huntington Avenue - Prudential Center Q3 2001 Q2 2002 Boston, MA 1 859,484 111 Huntington Avenue - retail Q3 2001 Q1 2003 Boston, MA - 93,852 ------------ ------------- TOTAL DEVELOPMENTS PLACED IN SERVICE 4 2,266,109 ============ ============= INVESTMENT TOTAL CONSTRUCTION DRAWN AT TO DATE INVESTMENT LOAN JUNE 30, 2002 --------------- -------------- --------------- --------------- CLASS A OFFICE BUILDING One Discovery Square (50% ownership) $ 18,000,000 $ 18,541,000 $ 16,875,000 $ 16,002,798 ITT Educational Services 5,252,852 5,740,000 - - 5 Times Square 460,569,466 536,115,000 420,000,000 351,008,652 111 Huntington Avenue - Prudential Center 299,528,403 290,000,000 203,000,000 196,245,002 111 Huntington Avenue - retail - n/a - - --------------- -------------- --------------- --------------- TOTAL DEVELOPMENTS PLACED IN SERVICE $ 783,350,721 $ 850,396,000 $ 639,875,000 $ 563,256,452 =============== ============== =============== =============== FUTURE EQUITY PERCENTAGE REQUIREMENT LEASED ------------- --------------- CLASS A OFFICE BUILDING One Discovery Square (50% ownership) $ - 100% ITT Educational Services 487,148 100% 5 Times Square - 100% 111 Huntington Avenue - Prudential Center - 98% 111 Huntington Avenue - retail 100% ------------- --------------- TOTAL DEVELOPMENTS PLACED IN SERVICE $ 487,148 99% ============= =============== BOSTON PROPERTIES, INC. SECOND QUARTER 2002 VALUE CREATION PIPELINE - OWNED LAND PARCELS ================================================================================ AS OF JUNE 30, 2002 VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS ================================================================================ AS OF JUNE 30, 2002
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET - -------- --------- ------------ --------------- Rockville, MD 4 92.3 986,000 Dulles, VA 2 76.6 937,000 Gaithersburg, MD 4 27.0 850,000 San Jose, CA 5 3.7 841,000 Reston, VA 3 26.7 861,000 Boston, MA 2 0.5 776,000 Marlborough, MA 1 50.0 400,000 Weston, MA 1 74.0 350,000 Herndon, VA (1) 1 8.9 126,000 Waltham, MA 1 4.3 202,000 S. San Francisco, CA (2) 1 3.0 121,000 Andover, MA 1 10.0 110,000 --------- ------------ --------------- 26 377.0 6,560,000 ========= ============ =============== (1) Sold for $5.2 million in July 2002. (2) Sold for $8.0 million in July 2002. (3) $20.00/FAR plus an earnout calculation. (4) Subject to ground lease. (5) Prior to January 23, 2003 the cost will be $27.72/ SF of land area. Land area is approximately 108,000 SF. 47
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET - -------- --------- ------------ --------------- Princeton, NJ (3) 14 149.9 1,900,000 Framingham, MA (4) 1 21.5 300,000 Cambridge, MA (5) 1 2.6 165,000 --------- ------------ --------------- 16 174.0 2,365,000 ========= ============ ===============
EXHIBIT 99.2 BOSTON PROPERTIES, INC. 111 HUNTINGTON AVENUE BOSTON, MA 02199 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD Douglas T. Linde Marilynn Meek - General Info. (212) 445-8431 Chief Financial Officer Claire Koeneman - Analyst (617) 520-7004 (617) 236-3300 Judith Sylk-Siegel - Media (212) 445-8431 BOSTON PROPERTIES, INC. ANNOUNCES SECOND QUARTER 2002 RESULTS REPORTS DILUTED FFO PER SHARE OF $1.02 BOSTON, MA, JULY 23, 2002 - BOSTON PROPERTIES, INC. (NYSE: BXP) today reported results for the second quarter ended June 30, 2002. Funds from Operations (FFO) for the quarter ended June 30, 2002, including a $2.8 million write-off of unrecoverable leasing commissions related to the previously reported termination of the Arthur Andersen lease at Times Square Tower, were $98.2 million, or $1.07 per share basic and $1.02 per share diluted before an accounting charge related to the application of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" and after an adjustment for early surrender lease payments received. FFO for the second quarter of 2002 compares to FFO of $81.4 million, or $0.90 per share basic and $0.86 per share diluted for the quarter ended June 30, 2001. This represents an 18.6% quarter to quarter increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 91,357,121 and 105,982,092, respectively, for the quarter ended June 30, 2002 and 89,989,616 and 105,259,081, respectively, for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2002 was $0.59 on a diluted basis reflecting an 11.3% increase in diluted EPS from the second quarter 2001 of $0.53. 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 June 30, 2002. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. -MORE- As of June 30, 2002, the Company's portfolio consisted of 144 properties comprising more than 41.2 million square feet, including nine properties under development totaling 3.3 million square feet. The overall occupancy rate for the properties in service as of June 30, 2002 was 95.3%. Significant events of the second quarter include: - - The increase in the quarterly dividend paid to holders of the Company's Common Stock from $0.58 per share to $0.61 per share. This represents a 5.2% increase. - - Lease termination income totaling approximately $1.2 million. - - A one-time refund of approximately $1.3 million received pursuant to resolution of a prior-year tax matter. - - The termination of the lease with Arthur Andersen LLP for 620,947 square feet at Times Square Tower. Upon signing the lease on December 1, 2000, Boston Properties paid $5.64 million of the $17.3 million leasing commission associated with the transaction, which the Company capitalized pending occupancy by the tenant. In connection with the lease termination, Insignia-ESG agreed to return half of such amount paid, leaving a balance of $2.82 million which was written-off and included in general and administrative expenses. Times Square Tower is a 1.2 million square foot office property that is on schedule to be completed during 2004. - - The completion of the 111 Huntington Avenue development project, a 953,336 square foot office/retail building at the Prudential Center in Boston, Massachusetts. This project is 98% leased. Transactions completed subsequent to June 30, 2002: - - The conversion of the Company's Series A Preferred Stock and certain of the Series Two and Three Preferred Units of the Company's Operating Partnership, with an aggregate liquidation preference of approximately $140.6 million, into approximately 3.7 million shares of Common Stock. - - The disposition of the following land parcels: an 8.9 acre site in Herndon, Virginia for approximately $5.2 million and a 3.0 acre site in South San Francisco, California for $8.0 million. Boston Properties will conduct a conference call tomorrow, July 24, 2002 at 10 AM (Eastern Time) to discuss the results of this year's second quarter. The number to call for this interactive teleconference is (800) 218-0204. A replay of the conference call will be available through July 31, 2002 by dialing (800) 405-2236 and entering the passcode 482556. Additionally, a copy of Boston Properties' second quarter 2002 "Supplemental Operating and Financial Data" will be available on the Investor section of the Company's website at http://www.bostonproperties.com. These materials are also available by contacting Investor Relations at 617-236-3300 or by written request to: Investor Relations Boston Properties, Inc. 111 Huntington Avenue Boston, MA 02199 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 four core markets - Boston, Midtown Manhattan, Washington, DC and San Francisco. 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. BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------------- ------------------------------- 2002 2001 2002 2001 -------------- -------------- -------------- -------------- (UNAUDITED AND IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) Revenue Rental: Base rent $ 242,846 $ 207,094 $ 471,952 $ 391,862 Recoveries from tenants 30,112 27,058 57,824 52,949 Parking and other 12,458 13,533 24,554 27,279 -------------- -------------- -------------- -------------- Total rental revenue 285,416 247,685 554,330 472,090 Development and management services 2,289 3,110 6,423 6,507 Interest and other 2,310 4,289 3,582 8,733 -------------- -------------- -------------- -------------- Total revenue 290,015 255,084 564,335 487,330 -------------- -------------- -------------- -------------- Expenses Operating 86,866 76,639 171,955 146,709 General and administrative 13,564 9,880 24,633 19,830 Interest 67,327 55,870 131,114 103,723 Depreciation and amortization 43,796 36,474 86,740 71,015 Loss on investments in securities - 6,500 4,297 6,500 -------------- -------------- -------------- -------------- Total expenses 211,553 185,363 418,739 347,777 -------------- -------------- -------------- -------------- Income before net derivative losses, minority interests, income from unconsolidated joint ventures, minority interest in Operating Partnership, gain on sale of real estate, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 78,462 69,721 145,596 139,553 Net derivative losses (4,826) (4,733) (5,129) (7,788) Minority interests in property partnerships 712 510 1,183 255 Income from unconsolidated joint ventures 1,659 717 3,341 1,844 -------------- -------------- -------------- -------------- Income before minority interest in Operating Partnership, gain on sale of real estate, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 76,007 66,215 144,991 133,864 Minority interest in Operating Partnership (19,589) (17,998) (37,975) (36,876) -------------- -------------- -------------- -------------- Income before gain on sale of real estate, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 56,418 48,217 107,016 96,988 Gain on sale of real estate, net of minority interest - 1,851 - 6,505 -------------- -------------- -------------- -------------- Income before discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 56,418 50,068 107,016 103,493 Discontinued Operations: Income from discontinued operations, net of minority interest - 618 570 1,210 Gain on sales of real estate from discontinued operations, net of minority interest - - 5,840 - -------------- -------------- -------------- -------------- Income before cumulative effect of a change in accounting principle and preferred dividend 56,418 50,686 113,426 104,703 Cumulative effect of a change in accounting principle, net of minority interest - - - (6,767) -------------- -------------- -------------- -------------- Net income before preferred dividend 56,418 50,686 113,426 97,936 Preferred dividend (1,643) (1,648) (3,286) (3,291) -------------- -------------- -------------- -------------- Net income available to common shareholders $ 54,775 $ 49,038 $ 110,140 $ 94,645 ============== ============== ============== ============== Basic earnings per share: Income before discontinued operations and cumulative effect of a change in accounting principle $ 0.60 $ 0.54 $ 1.14 $ 1.12 Discontinued operations - - 0.07 0.01 Cumulative effect of a change in accounting principle - - - (0.07) -------------- -------------- -------------- -------------- Net income available to common shareholders $ 0.60 $ 0.54 $ 1.21 $ 1.06 ============== ============== ============== ============== Weighted average number of common shares outstanding 91,357 89,990 91,146 89,365 ============== ============== ============== ============== Diluted earnings per share: Income before discontinued operations and cumulative effect of a change in accounting principle $ 0.59 $ 0.53 $ 1.12 $ 1.09 Discontinued operations - - 0.07 0.01 Cumulative effect of a change in accounting principle - - - (0.07) -------------- -------------- -------------- -------------- Net income available to common shareholders $ 0.59 $ 0.53 $ 1.19 $ 1.03 ============== ============== ============== ============== Weighted average number of common and common equivalent shares outstanding 93,016 92,274 92,897 91,739 ============== ============== ============== ============== BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
JUNE 30, DECEMBER 31, 2002 2001 ------------------ ------------------ (IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS) (UNAUDITED) ASSETS Real estate $ 6,972,779 $ 6,167,399 Development in progress 435,125 1,107,835 Land held for future development 199,681 182,672 Less: accumulated depreciation (795,852) (719,854) ------------------ ------------------ Total real estate 6,811,733 6,738,052 Cash and cash equivalents 59,616 98,067 Escrows 44,800 23,000 Investments in securities - 4,297 Tenant and other receivables 31,298 43,546 Accrued rental income 146,100 119,494 Deferred charges, net 148,239 107,573 Prepaid expenses and other assets 16,081 20,996 Investments in unconsolidated joint ventures 100,804 98,485 ------------------ ------------------ Total assets $ 7,358,671 $ 7,253,510 ================== ================== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $ 4,415,724 $ 4,314,942 Accounts payable and accrued expenses 52,655 81,108 Dividends and distributions payable 83,707 79,561 Interest rate contracts 11,568 11,147 Accrued interest payable 17,635 9,080 Other liabilities 65,142 58,859 ------------------ ------------------ Total liabilities 4,646,431 4,554,697 ------------------ ------------------ Commitments and contingencies - - ------------------ ------------------ Minority interests 825,730 844,740 ------------------ ------------------ 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, 91,545,294 and 90,780,591 issued and outstanding in 2002 and 2001, respectively 915 908 Additional paid-in capital 1,821,762 1,789,521 Dividends in excess of earnings (16,152) (17,669) Treasury common stock, at cost (2,722) (2,722) Unearned compensation (3,598) (2,097) Accumulated other comprehensive loss (13,695) (13,868) ------------------ ------------------ Total stockholders' equity 1,786,510 1,754,073 ------------------ ------------------ Total liabilities and stockholders' equity $ 7,358,671 $ 7,253,510 ================== ================== BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS) (1) Represents cash received under contractual obligations.
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------------------- ------------------------------- 2002 2001 2002 2001 -------------- -------------- -------------- -------------- Income before net derivative losses (SFAS No. 133), minority interests, income from unconsolidated joint ventures, minority interests in Operating Partnership, gain on sales of real estate, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend $ 78,462 $ 69,721 $ 145,596 $ 139,553 Add: Real estate depreciation and amortization 45,032 37,599 89,531 73,156 Income from discontinued operations - 758 697 1,496 Income from unconsolidated joint ventures 1,659 717 3,341 1,844 Less: Net derivative losses (SFAS No. 133) (4,826) (4,733) (5,129) (7,788) Minority property partnerships' share of funds from operations (593) (411) (1,312) (714) Preferred dividends and distributions (8,223) (8,260) (16,623) (16,481) -------------- -------------- -------------- -------------- Funds from operations $ 111,511 $ 95,391 $ 216,101 $ 191,066 Add (subtract): Net derivative losses (SFAS No. 133) 4,826 4,733 5,129 7,788 Early surrender lease adjustment (1) 3,926 - 7,853 - -------------- -------------- -------------- -------------- Funds from operations before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $ 120,263 $ 100,124 $ 229,083 $ 198,854 ============== ============== ============== ============== Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $ 98,165 $ 81,410 $ 187,094 $ 160,583 ============== ============== ============== ============== Weighted average shares outstanding - basic 91,357 89,990 91,146 89,365 ============== ============== ============== ============== FFO per share basic before net derivative losses (SFAS No. 133) and after early surrender adjustment $ 1.07 $ 0.90 $ 2.05 $ 1.80 ============== ============== ============== ============== FFO per share basic after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $ 1.00 $ 0.86 $ 1.94 $ 1.73 ============== ============== ============== ============== Weighted average shares outstanding - diluted 105,982 105,259 105,870 104,726 ============== ============== ============== ============== FFO per share diluted before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $ 1.02 $ 0.86 $ 1.95 $ 1.71 ============== ============== ============== ============== FFO per share diluted after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $ 0.95 $ 0.82 $ 1.84 $ 1.65 ============== ============== ============== ============== BOSTON PROPERTIES, INC. PORTFOLIO OCCUPANCY
Occupancy by Location ------------------------------------------------------- June 30, 2002 December 31, 2001 -------------------------- ------------------------- Greater Boston 93.2% 92.3% Greater Washington, D.C. 97.5% 97.8% Midtown Manhattan 98.4% 99.8% Baltimore, MD 97.8% 99.2% Richmond, VA 93.1% 98.4% Princeton/East Brunswick, NJ 90.8% 88.6% Greater San Francisco 93.6% 93.5% Bucks County, PA 100.0% 100.0% -------------------------- ------------------------- Total Portfolio 95.3% 95.3% ========================== =========================
Occupancy by Type ------------------------------------------------------- June 30, 2002 December 31, 2001 -------------------------- ------------------------- Class A Office Portfolio 95.3% 95.4% Office/Technical Portfolio 94.1% 97.9% Industrial Portfolio 100.0% 87.3% -------------------------- ------------------------- Total Portfolio 95.3% 95.3% ========================== =========================