SEC Filing

View:

Download DOC

Download PDF

Download XLS

Form 8-K

UNITED STATES

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 26, 2006

BOSTON PROPERTIES, INC.

(Exact name of registrant as specified in charter)


Delaware	1-13087	04-2473675
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

111 Huntington Avenue, Suite 300, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K is furnished under Item 2.02—“Results of Operations and Financial Condition.” Such information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

On July 26, 2006, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2006. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.


		Exhibit No.		Description
		*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2006.

		*99.2		Press release dated July 26, 2006.

*	Filed herewith.

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.


	BOSTON PROPERTIES, INC.

Date: July 26, 2006	By:	/s/ Douglas T. Linde
		Douglas T. Linde
		Executive Vice President & Chief Financial Officer

EXHIBIT INDEX


		Exhibit No.		Description
		*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2006.

		*99.2		Press release dated July 26, 2006.

*	Filed herewith.

Supplemental Operating and Financial Data for the quarter ended June 30, 2006

EXHIBIT 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2006

Boston Properties, Inc.

Second Quarter 2006

Table of Contents


		*Page*
Company Profile		3
Investor Information		4
Research Coverage		5
Financial Highlights		6
Consolidated Balance Sheets		7
Consolidated Income Statements		8
Funds From Operations		9
Reconciliation to Diluted Funds From Operations		10
Funds Available for Distribution and Interest Coverage Ratios		11
Discontinued Operations		12
Capital Structure		13
Debt Analysis		14-16
Unconsolidated Joint Ventures		17-18
Value-Added Fund		19
Portfolio Overview-Square Footage		20
In-Service Property Listing		21-23
Top 20 Tenants and Tenant Diversification		24
Office Properties-Lease Expiration Roll Out		25
Office/Technical Properties-Lease Expiration Roll Out		26
Retail Properties - Lease Expiration Roll Out		27
Grand Total - Office, Office/Technical, Industrial and Retail Properties		28
Greater Boston Area Lease Expiration Roll Out		29-30
Washington, D.C. Area Lease Expiration Roll Out		31-32
San Francisco Area Lease Expiration Roll Out		33-34
Midtown Manhattan Area Lease Expiration Roll Out		35-36
Princeton Area Lease Expiration Roll Out		37-38
CBD/Suburban Lease Expiration Roll Out		39-40
Hotel Performance		41
Occupancy Analysis		42
Same Property Performance		43
Reconciliation to Same Property Performance and Net Income		44-45
Leasing Activity		46
Capital Expenditures, Tenant Improvements and Leasing Commissions		47
Acquisitions/Dispositions		48
Value Creation Pipeline - Construction in Progress		49
Value Creation Pipeline - Land Parcels and Purchase Options		50
Definitions		51

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. 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 (including the impact of interest rates on our hedging program), the effects of local economic and market conditions, the effects of acquisitions and dispositions, including possible impairment charges, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Boston Properties, Inc.

Second Quarter 2006

COMPANY PROFILE

The Company

Boston Properties, Inc. (the “Company”), a self-administered and self-managed real estate investment trust (REIT), is one of the largest owners, managers, and developers of first-class office properties in the United States, with a significant presence in five markets: Boston, Washington, D.C., Midtown Manhattan, San Francisco, and Princeton, N.J. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997. The Company acquires, develops, and manages its properties through full-service regional offices. Its property portfolio is comprised primarily of first-class office space and also includes two hotels. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record in developing premium Central Business District (CBD) office buildings, suburban office centers and build-to-suit projects for the U.S. government and a diverse array of high-credit tenants.

Management

Boston Properties’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of thirty-one individuals average twenty-five years of real estate experience and fifteen years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Mortimer B. Zuckerman, Chairman of our Board of Directors, and Edward H. Linde, our President and Chief Executive Officer. Each has a national reputation, which attracts business and investment opportunities. In addition, our three Executive Vice Presidents and other senior officers that serve as Regional Managers have strong reputations that aid us in identifying and closing on new opportunities, having opportunities brought to us, and negotiating with tenants and build-to-suit prospects. Boston Properties’ Board of Directors consists of ten distinquished members, the majority of which serve as Independent Directors.

Strategy

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its stockholders with the greatest possible total return. To achieve this objective, the Company maintains a consistent strategy, which includes: Concentrating on a few carefully selected markets—characterized by high barriers to the creation of new supply and strong real estate fundamentals—where tenants have demonstrated a preference for high-quality office buildings and other facilities; selectively acquiring assets which increase its penetration in these select markets; taking on complex, technically-challenging projects that leverage the skills of its management team to successfully develop, acquire, and reposition properties; exploring joint-venture opportunities primarily with existing owners of land parcels who seek to benefit from the Company’s depth of development and management expertise; pursuing the sale of properties (on a selective basis) to take advantage of its value creation and the demand for its premier properties; and continuing to enhance the Company’s balanced capital structure through its access to a variety of capital sources.

Snapshot

(as of June 30, 2006)


Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		December 31
Total Properties		124
Total Square Feet		42.1
Common Shares and
Units Outstanding (as converted)		140.3 million
Dividend - Quarter/Annualized		$0.68/$2.72
Dividend Yield		3.01%
Total Market Capitalization		$17.5 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Second Quarter 2006

INVESTOR INFORMATION


Board of Directors		Management
Mortimer B. Zuckerman Chairman of the Board	Carol B. Einiger Director	Douglas T. Linde Executive Vice President, Chief Financial Officer and Treasurer	Mitchell S. Landis Senior Vice President and Regional Manager of Princeton

Edward H. Linde President and Chief Executive Officer, Director	Alan J. Patricof Director, Chairman of Audit Committee	E. Mitchell Norville Executive Vice President for Operations	Robert E. Pester Senior Vice President and Regional Manager of San Francisco

Lawrence S. Bacow Director	Richard E. Salomon Director, Chairman of Compensation Committee	Raymond A. Ritchey Executive Vice President, National Director of Acquisitions & Development	Robert E. Selsam Senior Vice President and Regional Manager of New York

Zoë Baird Director	Martin Turchin Director	Peter D. Johnston Senior Vice President and Regional Manager of Washington, D.C.	Frank D. Burt Senior Vice President, General Counsel

William M. Daley Director, Chairman of Nominating & Corporate Governance Committee	David A. Twardock Director	Bryan J. Koop Senior Vice President and Regional Manager of Boston	Arthur S. Flashman Vice President, Controller


Company Information
Corporate Headquarters	Trading Symbol	Investor Relations	Inquires
111 Huntington Avenue Suite 300 Boston, MA 02199 (t) 617.236.3300 (f) 617.236.3311	BXP Stock Exchange Listing New York Stock Exchange	Boston Properties, Inc. 111 Huntington Avenue, Suite 300 Boston, MA 02199 (t) 617.236.3322 (f) 617.236.3311 www.bostonproperties.com	Financial inquiries should be directed to Michael Walsh, Senior Vice President - Finance, at 617.236.3410 or mwalsh@bostonproperties.com Investor or media inquires should be directed to Kathleen DiChiara, Investor Relations Manager, at 617.236.3343 or kdichiara@bostonproperties.com

Common Stock Data (NYSE: BXP)

Boston Properties’ common stock has the following characteristics (based on information reported by the New York Stock Exchange):


	Q2 2006			Q1 2006			Q4 2005			Q3 2005			Q2 2005
High Price	$	91.55		$	96.87		$	76.05		$	76.25		$	70.00
Low Price	$	82.87		$	75.36		$	65.11		$	69.23		$	59.65
Average Closing Price	$	87.43		$	83.64		$	71.40		$	72.21		$	65.92
Closing Price, at the end of the quarter	$	90.40		$	93.25		$	74.13		$	70.90		$	70.00
Dividends per share - annualized (1)	$	2.72		$	2.72		$	2.72		$	2.72		$	2.72
Closing dividend yield - annualized (1)		3.01	%		2.92	%		3.67	%		3.84	%		3.89	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		140,291			139,213			139,158			139,153			138,389
Closing market value of outstanding shares and units (thousands)	$	12,682,306		$	12,981,612		$	10,315,783		$	9,865,948		$	9,687,230

(1)

Excludes special dividend of $2.50 per share paid on October 31, 2005.

Timing

Quarterly results for 2006 will be announced according to the following schedule:


Third Quarter		Late October 2006
Fourth Quarter		Late January 2007

Boston Properties, Inc.

Second Quarter 2006

RESEARCH COVERAGE


Equity Research Coverage			Debt Research Coverage
David Aubuchon A.G. Edwards & Sons 314.955.5452	Anthony Paolone /Michael Mueller J.P. Morgan Securities 212.622.6682 / 212.622.6689	Chris Brown Banc of America Securities 704.386.2524	Rating Agencies: Jan Svec Fitch Ratings 212.908.0304

Ross Nussbaum / John Kim Banc of America Securities 212.847.5668 / 212.847.5761	David Harris / David Toti Lehman Brothers 212.526.1790 / 212.526.2002	Sue Berliner / Elizabeth Carter Bear Stearns & Company 212.272.3824 / 212.272.0217	Karen Nickerson Moody’s Investors Service 212.553.4924

Ross Smotrich /Jeffrey Langbaum Bear Stearns & Company 212.272.8046 / 212.272.4201	Steve Sakwa / Ian Weissman Merill Lynch & Company 212.449.0335 / 212.449.6255	Thomas Cook Citigroup Global Markets 212.723.1112	James Fielding Standard & Poor’s 212.438.2452

Jonathan Litt / Michael Bilerman Citigroup Global Markets 212.816.0231 / 212.816.1383	Matthew Ostrower / David Cohen Morgan Stanley & Company 212.761.6284 / 212.761.8564	Matthew Lynch Credit Suisse Securities 212.325.6456

Louis Taylor / Kristin Brown Deutsche Bank Securities 203.863.2381 / 212.250.6799	Sri Nagarajan RBC Capital Markets 212.428.2360	Scott O’Shea Deutsche Bank Securities 212.250.7190

Wilkes Graham / Saad Hashemy Friedman, Billings, Ramsey 703.312.9737 / 703.469.1218	John Guinee / Michael Hudgins Stifel, Nicolaus & Company 410.454.5520 / 410.454.4830	Mark Streeter J.P. Morgan Securities 212.834.5086

Jay Habermann / Sloan Bohlen Goldman Sachs & Company 917.343.4260 / 212.902.2796	James Feldman / Gretchen Amidon UBS Investment Research 212.713.4932 / 212.713.4057	John Forrey / James Rank Merrill Lynch & Company 212.449.1812 / 212.449.6533

Jim Sullivan / Michael Knott Green Street Advisors 949.640.8780

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties’ performance made by the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

Boston Properties, Inc.

Second Quarter 2006

FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial measures are shown on pages 9 through 11. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations can be found on page 51.


	Three Months Ended
	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
Income Items:
Revenue	$	370,349		$	356,104		$	366,333		$	359,094		$	357,935
Straight line rent (SFAS 13)	$	11,723		$	13,155		$	13,596		$	12,287		$	19,294
Fair value lease revenue (SFAS 141) (1)	$	492		$	417		$	293		$	294		$	295
Lease termination fees (included in revenue)	$	1,400		$	812		$	4,038		$	2,087		$	3,979
Capitalized interest	$	1,304		$	1,692		$	2,425		$	1,734		$	866
Capitalized wages	$	1,523		$	1,353		$	1,340		$	1,492		$	1,422
Operating Margins [(rental revenue - rental expense)/rental revenue] (2)		68.9	%		68.2	%		68.4	%		68.4	%		69.5	%
Net income available to common shareholders	$	626,033		$	67,737		$	154,063		$	57,551		$	165,490
Funds from operations (FFO) available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (3) (4)	$	129,390		$	119,210		$	126,701		$	123,671		$	121,309
FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.10		$	1.03		$	1.09		$	1.07		$	1.06
Net income available to common shareholders per share - basic	$	5.34		$	0.60		$	1.35		$	0.51		$	1.46
Net income available to common shareholders per share - diluted	$	5.24		$	0.59		$	1.32		$	0.50		$	1.43
Dividends per common share (5)	$	0.68		$	0.68		$	0.68		$	3.18		$	0.68
Funds available for distribution to common shareholders and common unitholders (FAD) (4)	$	110,307		$	104,527		$	101,976		$	110,836		$	92,165
Ratios:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.89			2.81			2.93			2.88			2.68
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.84			2.75			2.84			2.81			2.65
FFO Payout Ratio (7)		61.82	%		66.02	%		62.39	%		63.55	%		64.15	%
FAD Payout Ratio (8)		83.77	%		87.41	%		89.33	%		82.25	%		98.15	%
	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
Capitalization:
Total Debt	$	4,833,401		$	4,696,713		$	4,826,254		$	4,921,867		$	4,898,757
Common Stock Price @ Quarter End	$	90.40		$	93.25		$	74.13		$	70.90		$	70.00
Equity Value @ Quarter End	$	12,682,306		$	12,981,612		$	10,315,783		$	9,865,948		$	9,687,230
Total Market Capitalization (9)	$	17,515,707		$	17,678,325		$	15,142,037		$	14,787,815		$	14,585,987
Debt/Total Market Capitalization (9)		27.59	%		26.57	%		31.87	%		33.28	%		33.59	%

(1)	Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

(2)

Rental Expense consist of operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $7,907, $7,983, $8,287, $9,057 and $6,992 for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

(3)

For a quantitative reconciliation of the differences between FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate and net income available to common shareholders, see page 9. The supplemental adjustment is only applicable for the three months ended June 30, 2006 and June 30, 2005.

(4)	For a quantitative reconciliation of the differences between FAD and FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate, see page 11.

(5)	For the three months ended September 30, 2005, dividends per share include the $2.50 per common share special dividend paid on October 31, 2005.

(6)	For additional detail, see page 11.

(7)	Dividends per common share divided by FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted. For the three months ended September 30, 2005, excludes the $2.50 special dividend paid on October 31, 2005.

(8)	Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders divided by FAD. For the three months ended September 30, 2005, excludes the $2.50 per share special dividend paid on October 31, 2005.

(9)	For additional detail, see page 13.

Boston Properties, Inc.

Second Quarter 2006

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
ASSETS
Real estate	$	8,698,493		$	8,864,907		$	8,724,954		$	8,792,127		$	8,736,776
Construction in progress		78,926			107,051			177,576			144,009			99,727
Land held for future development		222,519			189,024			248,645			244,783			239,314
Real estate held for sale		—			—			—			444			—
Less accumulated depreciation		(1,314,472	)		(1,320,712	)		(1,265,073	)		(1,237,469	)		(1,190,465	)

Total real estate		7,685,466			7,840,270			7,886,102			7,943,894			7,885,352
Cash and cash equivalents		370,396			32,214			261,496			450,577			507,182
Cash held in escrows		894,244	(1)		23,715			25,618			27,552			29,077
Investments in marketable securities		—			—			—			37,500			25,000
Tenant and other receivables, net		35,814			41,458			52,668			32,463			28,230
Accrued rental income, net		298,306			316,048			302,356			292,289			280,257
Deferred charges, net		250,154			246,214			242,660			239,443			243,674
Prepaid expenses and other assets		79,174			91,646			41,261			63,859			43,042
Investments in unconsolidated joint ventures		96,962			98,836			90,207			96,311			82,810

Total assets	$	9,710,516		$	8,690,401		$	8,902,368		$	9,183,888		$	9,124,624

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	2,912,135		$	3,185,550		$	3,297,192		$	3,450,904		$	3,427,892
Unsecured senior notes, net of discount		1,471,266			1,471,163			1,471,062			1,470,963			1,470,865
Unsecured exchangeable senior notes		450,000			—			—			—			—
Unsecured line of credit		—	(2)		40,000	(2)		58,000	(2)		—	(2)		—
Accounts payable and accrued expenses		90,390			86,938			109,823			81,730			92,649
Dividends and distributions payable		95,839			95,344			107,643			443,437			95,597
Accrued interest payable		50,175			39,269			47,911			39,443			47,744
Other liabilities		246,042	(3)		98,296			154,123			137,526			132,427

Total liabilities		5,315,847			5,016,560			5,245,754			5,624,003			5,267,174

Commitments and contingencies		—			—			—			—			—

Minority interests		824,924			735,185			739,268			725,077			795,767

Stockholders’ Equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 114,219,448, 112,813,657, 112,542,262, 112,500,887 and 111,403,373 outstanding, respectively		1,142			1,128			1,125			1,125			1,114
Additional paid-in capital		2,831,119			2,759,580			2,745,719			2,749,432			2,679,447
Earnings in excess of dividends		720,623			173,129			182,105			104,559			404,635
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		—			—			—			(5,564	)		(5,503	)
Accumulated other comprehensive income (loss)		19,583			7,541			(8,881	)		(12,022	)		(15,288	)

Total stockholders’ equity		3,569,745			2,938,656			2,917,346			2,834,808			3,061,683

Total liabilities and stockholders’ equity	$	9,710,516		$	8,690,401		$	8,902,368		$	9,183,888		$	9,124,624

(1)

Cash held in escrows includes $872 million held in escrow by a qualifying intermediary for the purpose of potentially accomplishing a like-kind exchange with proceeds received from the sale of 280 Park Avenue. No qualifying replacement assets were identified by the statutory expiration date of July 21, 2006 and the cash was subsequently released from escrow back to the company with no restrictions as to its use.

(2)	On July 19, 2005, the Company refinanced its $225.0 million mortgage loan collateralized by 599 Lexington Avenue through a secured draw from the Unsecured Line of Credit. As a result, the $225.0 million that was drawn on the line of credit is reflected within Mortgage Notes Payable.

(3)

At June 30, 2006, Other Liabilities included approximately $67.3 million and approximately $20.9 million consisting of the master lease and revenue support obligations, respectively, related to the sale of 280 Park Avenue and approximately $45.8 million related to the redemption of the outside members’ equity interests in the entity that owns Citigroup Center.

Boston Properties, Inc.

Second Quarter 2006

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Jun-06			31-Mar-06			31-Dec-05			30-Sep-05			30-Jun-05
Revenue:
Rental
Base Rent	$	277,155		$	276,398		$	279,583		$	274,523		$	277,359
Recoveries from tenants		45,506			47,193			44,098			43,983			41,836
Parking and other		14,219			13,829			14,051			13,470			14,121

Total rental revenue		336,880			337,420			337,732			331,976			333,316
Hotel revenue		19,674			12,343			22,161			17,453			17,566
Development and management services		5,230			4,376			3,714			4,923			4,137
Interest and other		8,565			1,965			2,726			4,742			2,916

Total revenue		370,349			356,104			366,333			359,094			357,935

Expenses:
Operating		66,569			67,187			68,440			66,387			63,379
Real estate taxes		43,663			45,427			43,844			44,725			43,076
Hotel operating		12,770			11,477			16,125			12,260			12,495
General and administrative		15,796			14,642			13,136			13,270			14,252
Interest (1)		78,449			74,817			74,804			75,700			78,233
Depreciation and amortization		67,912			66,847			66,290			65,717			67,026
Losses from early extinguishments of debt (2)		31,457			467			—			—			12,896

Total expenses		316,616			280,864			282,639			278,059			291,357

Income before minority interests and income from unconsolidated joint ventures		53,733			75,240			83,694			81,035			66,578
Minority interest in property partnerships		777			1,236			1,366			1,527			1,472
Income from unconsolidated joint ventures		1,677			1,290			1,530			1,117			847

Income before minority interest in Operating Partnership		56,187			77,766			86,590			83,679			68,897
Minority interest in Operating Partnership (3)		(11,758	)		(15,470	)		(16,928	)		(26,874	)		(14,596	)

Income before gains on sales of real estate and land held for development		44,429			62,296			69,662			56,805			54,301
Gains on sales of real estate, net of minority interest		581,604			5,441			48,542			—			102,073

Income before discontinued operations		626,033			67,737			118,204			56,805			156,374
Income from discontinued operations, net of minority interest		—			—			730			746			727
Gains on sales of real estate from discontinued operations, net of minority interest		—			—			39,364			—			8,389

Income before cumulative effect of a change in accounting principle		626,033			67,737			158,298			57,551			165,490
Cumulative effect of a change in accounting principle		—			—			(4,235	)		—			—

Net income available to common shareholders	$	626,033		$	67,737		$	154,063		$	57,551		$	165,490


INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	5.34		$	0.60		$	1.35		$	0.51		$	1.46

Net income available to common shareholders per share - diluted	$	5.24		$	0.59		$	1.32		$	0.50		$	1.43

(1)	Interest expense is reported net of capitalized interest of $1,304, $1,692, $2,425, $1,734 and $866 for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

(2)	Includes $31.4 million and $11.0 million of losses from early extinguishments of debt associated with the sales of real estate for the three months ended June 30, 2006 and 2005, respectively.

(3)

Equals minority interest share of 15.68% 15.95%, 16.02%, 16.20% and 16.42% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

Certain

prior period amounts have been reclassified to conform to current period presentation.

Boston Properties, Inc.

Second Quarter 2006

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Jun-06		31-Mar-06		31-Dec-05		30-Sep-05			30-Jun-05
Net income available to common shareholders	$	626,033	$	67,737	$	154,063	$	57,551		$	165,490
Add:
Minority interest in Operating Partnership		11,758		15,470		16,928		26,874			14,596
Cumulative effect of a change in accounting principle, net of minority interest		—		—		4,235		—			—
Less:
Minority interest in property partnerships		777		1,236		1,366		1,527			1,472
Income from unconsolidated joint ventures		1,677		1,290		1,530		1,117			847
Gain on sales of real estate, net of minority interest		581,604		5,441		48,542		—			102,073
Income (loss) from discontinued operations, net of minority interest		—		—		730		746			727
Gain on sales of real estate from discontinued operations, net of minority interest		—		—		39,364		—			8,389

Income before minority interests and income from unconsolidated joint ventures		53,733		75,240		83,694		81,035			66,578
Add:
Real estate depreciation and amortization (1)		69,773		68,674		67,987		67,702			69,247
Income from discontinued operations		—		—		869		890			871
Income from unconsolidated joint ventures		1,677		1,290		1,530		1,117			847
Less:
Minority property partnerships’ share of funds from operations		211		268		114		(32	)		106
Preferred dividends and distributions		2,965		3,110		3,098		3,200	(2)		3,340

Funds from operations (FFO)		122,007		141,826		150,868		147,576			134,097
Add:
Losses from early extinguishments of debt associated with the sales of real estate		31,444		—		—		—			11,041

FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		153,451		141,826		150,868		147,576			145,138
Less:
Minority interest in Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		24,061		22,616		24,167		23,905			23,829

FFO available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (3)	$	129,390	$	119,210	$	126,701	$	123,671		$	121,309

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.14	$	1.06	$	1.13	$	1.11		$	1.10

FFO per share - basic	$	0.90	$	1.06	$	1.13	$	1.11		$	1.01

Weighted average shares outstanding - basic		113,994		112,509		112,340		111,776			110,764

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.10	$	1.03	$	1.09	$	1.07		$	1.06

FFO per share - basic	$	0.88	$	1.03	$	1.09	$	1.07		$	0.98

Weighted average shares outstanding - diluted		120,605		120,013		119,497		119,177			118,460

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $67,912, $66,847, $66,290, $65,717 and $67,026, our share of unconsolidated joint venture real estate depreciation and amortization of $2,280, $2,304, $2,174, $2,188 and $2,394 and depreciation and amortization from discontinued operations of $0, $0, $63, $190 and $193, less corporate related depreciation of $419, $477, $540, $393 and $366, for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

(2)	Excludes approximately $12.1 million of income allocated to the holders of Series Two Preferred Units to account for their right to participate on an as-converted basis in the special dividend that followed previously completed sales of real estate.

(3)	Based on weighted average shares for the quarter. Company’s share for the quarter ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005 was 84.32%, 84.05%, 83.98%, 83.80% and 83.58%, respectively.

Boston Properties, Inc.

Second Quarter 2006

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005				June 30, 2005
	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)			Shares (Denominator)	Income (Numerator)		Shares (Denominator)
Basic FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	153,451	135,192	$	141,826	133,853	$	150,868	133,768	$	147,576		133,381	$	145,138	132,522
Effect of Dilutive Securities
Convertible Preferred Units		2,965	4,430		3,110	4,857		3,098	4,857		3,200	(1)	5,087		3,340	5,357
Stock Options and other		—	2,182		—	2,648		—	2,300		—		2,314		—	2,339

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	156,416	141,804	$	144,936	141,358	$	153,966	140,925	$	150,776		140,782	$	148,478	140,218
Less:
Minority interest in Operating Partnership’s share of diluted funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		23,383	21,199		21,885	21,345		23,411	21,428		23,139		21,605		23,039	21,758

Company’s share of diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (2)	$	133,033	120,605	$	123,051	120,013	$	130,555	119,497	$	127,637		119,177	$	125,439	118,460

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.14		$	1.06		$	1.13		$	1.11			$	1.10

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.10		$	1.03		$	1.09		$	1.07			$	1.06

(1)	Excludes approximately $12.1 million of income allocated to the holders of Series Two Preferred Units to account for their right to participate on an as-converted basis in the special dividend that followed previously completed sales of real estate.

(2)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005 was 85.05%, 84.90%, 84.79%, 84.65% and 84.48%, respectively.

Boston Properties, Inc.

Second Quarter 2006

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
Basic FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (see page 9)	$	153,451		$	141,826		$	150,868		$	147,576		$	145,138
2nd generation tenant improvements and leasing commissions		(29,566	)		(17,459	)		(26,663	)		(19,582	)		(29,012	)
Straight-line rent		(11,723	)		(13,155	)		(13,596	)		(12,287	)		(19,294	)
Recurring capital expenditures		(5,275	)		(4,206	)		(9,076	)		(5,637	)		(6,195	)
Fair value interest adjustment		(881	)		(824	)		(821	)		(818	)		(812	)
Fair value lease revenue (SFAS 141)		(492	)		(417	)		(293	)		(294	)		(295	)
Hotel improvements, equipment upgrades and replacements		(1,988	)		(4,263	)		(1,860	)		(1,539	)		(182	)
Non real estate depreciation		419			477			540			393			366
Stock-based compensation		1,982			2,548			1,749			1,548			1,584
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		4,380			—			1,128			1,476			867

Funds available for distribution to common shareholder and common unitholders (FAD)	$	110,307		$	104,527		$	101,976		$	110,836		$	92,165

Interest Coverage Ratios

(in thousands, except for ratio amounts)


	Three Months Ended
	June 30, 2006			March 31, 2006			December 31, 2005			September 30, 2005			June 30, 2005
*Excluding Capitalized Interest*

Income before minority interests and income from unconsolidated joint ventures	$	53,733		$	75,240		$	83,694		$	81,035		$	66,578
Interest expense		78,449			74,817			74,804			75,700			78,233
Losses from early extinguishments of debt associated with the sales of real estate		31,444			—			—			—			11,041
Depreciation and amortization expense		67,912			66,847			66,290			65,717			67,026
Depreciation from joint ventures		2,280			2,304			2,174			2,188			2,394
Income from unconsolidated joint ventures		1,677			1,290			1,530			1,117			847
Discontinued operations - depreciation expense		—			—			63			190			193
Discontinued operations		—			—			869			890			871
Straight-line rent		(11,723	)		(13,155	)		(13,596	)		(12,287	)		(19,294	)
Fair value lease revenue (SFAS 141)		(492	)		(417	)		(293	)		(294	)		(295	)

Subtotal		223,280			206,926			215,535			214,256			207,594

Divided by:
Interest expense (1)		77,253			73,644			73,540			74,514			77,410
Interest Coverage Ratio		2.89			2.81			2.93			2.88			2.68


*Including Capitalized Interest*

Income before minority interests and income from unconsolidated joint ventures	$	53,733		$	75,240		$	83,694		$	81,035		$	66,578
Interest expense		78,449			74,817			74,804			75,700			78,233
Losses from early extinguishments of debt associated with the sales of real estate		31,444			—			—			—			11,041
Depreciation and amortization expense		67,912			66,847			66,290			65,717			67,026
Depreciation from joint ventures		2,280			2,304			2,174			2,188			2,394
Income from unconsolidated joint ventures		1,677			1,290			1,530			1,117			847
Discontinued operations - depreciation expense		—			—			63			190			193
Discontinued operations		—			—			869			890			871
Straight-line rent		(11,723	)		(13,155	)		(13,596	)		(12,287	)		(19,294	)
Fair value lease revenue (SFAS 141)		(492	)		(417	)		(293	)		(294	)		(295	)

Subtotal		223,280			206,926			215,535			214,256			207,594

Divided by:
Interest expense (1) (2)		78,557			75,336			75,965			76,248			78,276
Interest Coverage Ratio		2.84			2.75			2.84			2.81			2.65

(1)	Excludes amortization of financing costs of $1,196, $1,173, $1,264, $1,186 and $823 for the quarters ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

(2)	Includes capitalized interest of $1,304, $1,692, $2,425, $1,734 and $866 for the quarters ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

Boston Properties, Inc.

Second Quarter 2006

DISCONTINUED OPERATIONS

(in thousands, unaudited)

Effective January 1, 2002, the Company adopted the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company’s application of SFAS No. 144 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2005 and 2004 as income from discontinued operations for all periods presented. The following table summarizes income from discontinued operations (net of minority interest) for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.


	Three Months Ended
		30-Jun-06		31-Mar-06		31-Dec-05			30-Sep-05			30-Jun-05

Total Revenue (1)	$	—	$	—	$	2,031		$	2,711		$	2,739
Expenses:
Operating		—		—		28			105			191
Hotel operating		—		—		1,071			1,526			1,484
Depreciation and amortization		—		—		63			190			193
Total Expenses		—		—		1,162			1,821			1,868
Income before minority interest in Operating Partnership		—		—		869			890			871
Minority interest in Operating Partnership		—		—		139			144			144
Income from discontinued operations (net of minority interest)	$	—	$	—	$	730		$	746		$	727
Properties (2):						Residence Inn by Marriott	^®		Residence Inn by Marriott	^®		Residence Inn by Marriott	^®
						40-46 Harvard Street			40-46 Harvard Street			40-46 Harvard Street
												Old Federal Reserve

(1) The impact of the straight-line rent adjustment increased (decreased) revenue by $0, $0, $0, $(1) and $(1) for the three months ended June 30, 2006, March 31, 2006, December 31, 2005, September 30, 2005 and June 30, 2005, respectively.

(2) Discontinued operations does not include the operations of 280 Park Avenue, Embarcadero Center West Tower, 100 East Pratt Street and Riverfront Plaza due to the Company’s continuing involvement in the management, for a fee, of these properties subsequent to the sales through agreements with the buyers.

Boston Properties, Inc.

Second Quarter 2006

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal June 30, 2006
Mortgage Notes Payable	$	2,912,135
Unsecured Line of Credit		—
Unsecured Senior Notes, net of discount		1,471,266
Unsecured Exchangeable Senior Notes		450,000

Total Debt	$	4,833,401

Boston Properties Limited Partnership Unsecured Senior Notes


Settlement Date		5/22/03			3/18/03			1/17/03			12/31/02			Total/Average
Principal Amount	$	250,000		$	300,000		$	175,000		$	750,000		$	1,475,000
Yield (on issue date)		5.075%			5.636%			6.280%			6.296%			5.95%
Coupon		5.000%			5.625%			6.250%			6.250%			5.91%
Discount		99.329%			99.898%			99.763%			99.650%			99.66%
Ratings:
Moody’s		Baa2	(stable)		Baa2	(stable)		Baa2	(stable)		Baa2	(stable)
S&P		BBB	(stable)		BBB	(stable)		BBB	(stable)		BBB	(stable)
Fitch		BBB	(stable)		BBB	(stable)		BBB	(stable)		BBB	(stable)
Maturity Date		6/1/2015			4/15/2015			1/15/2013			1/15/2013
Discount	$	1,340		$	242		$	315		$	1,837		$	3,734

Unsecured Senior Notes, net of discount	$	248,660		$	299,758		$	174,685		$	748,163		$	1,471,266


Boston Properties Limited Partnership Unsecured Exchangeable Senior Notes (1)
Settlement Date		4/6/2006
Principal Amount	$	450,000											$	450,000
Yield (on issue date)		3.750%												3.750%
First Optional Redemption Date		5/18/2013
Maturity Date		5/18/2036

Unsecured Senior Exchangable Notes													$	450,000

(1)	The initial exchange rate is equivalent to an initial exchange price of approximately $111.78 per share of Boston Properties, Inc.’s common stock.


*Equity*
*(in thousands)*

	Shares/Units Outstanding as of 6/30/2006	Common Stock Equivalents		Equivalent (2)
Common Stock	114,219	114,219	(3)	$	10,325,398
Common Operating Partnership Units	21,662	21,662	(4)		1,958,245
Series Two Preferred Operating Partnership Units	3,360	4,410			398,664

Total Equity		140,291		$	12,682,306

Total Debt					4,833,401

Total Market Capitalization				$	17,515,707

(2)	Value based on June 30, 2006 closing price of $90.40 per share of common stock.

(3)	Includes 169 shares of restricted stock.

(4)	Includes 514 long-term incentive plan units.

Boston Properties, Inc.

Second Quarter 2006

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2006			2007			2008			2009			2010			Thereafter			Total
Floating Rate Debt	$	32,056		$	225,000		$	475,000		$	—		$	—		$	—		$	732,056
Fixed Rate Debt		79,470			178,126			797,794			184,450			130,625			2,730,880			4,101,345

Total Debt	$	111,526		$	403,126		$	1,272,794		$	184,450		$	130,625		$	2,730,880		$	4,833,401

Weighted Average Floating Rate Debt		6.85	%		5.55	%		5.70	%		—			—			—			5.70	%
Weighted Average Fixed Rate Debt		7.94	%		6.59	%		6.83	%		7.10	%		7.96	%		5.34	%		5.90	%

Total Weighted Average Rate		7.63	%		6.01	%		6.41	%		7.10	%		7.96	%		5.34	%		5.87	%

Unsecured Debt

Unsecured Line of Credit - Matures October 30, 2007

(in thousands)


Facility	Outstanding @ 6/30/2006			Letters of Credit		Remaining Capacity @ 6/30/2006
$605,000	$	—	(1)	$	16,048	$	363,952	(1)

(1)	$225 million drawn on the unsecured line of credit is secured by 599 Lexington Avenue and is included under Mortgage Notes Payable.

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	39.75	%	4.56	%	7.3 years
Secured Debt	60.25	%	6.73	%	3.3 years

Total Debt	100.00	%	5.87	%	4.9 years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	15.15	%	5.70	%	1.7 years
Fixed Rate Debt	84.85	%	5.90	%	5.5 years

Total Debt	100.00	%	5.87	%	4.9 years

Interest Rate Hedging Instruments (2)

(in thousands)


	Notional Amount		Weighted Average Treasury Rate		Effective Date	Maturity Date
Forward-starting interest rate swaps	$	500,000	4.34	%	2/1/2007	2/1/2017

(2)	The Company has entered into a series of interest rate hedges to lock in the 10-year treasury rate and 10-year swap spread in contemplation of obtaining long-term fixed rate financing to finance or refinance properties in the Company’s existing portfolio.

Boston Properties, Inc.

Second Quarter 2006


*DEBT MATURITIES AND PRINCIPAL PAYMENTS*
*(in thousands)*

Property	2006			2007			2008			2009			2010			Thereafter			Total
Citigroup Center	$	3,903		$	8,223		$	8,816		$	9,453		$	10,136		$	456,898		$	497,429
Times Square Tower		—			—			475,000			—			—			—			475,000
Embarcadero Center One and Two		2,794			5,877			278,912			—			—			—			287,583
Prudential Center		2,648			5,619			259,706			—			—			—			267,973
599 Lexington Avenue		—			225,000	(1)					—			—			—			225,000
Embarcadero Center Four		2,052			4,346			129,712			—			—			—			136,110
Embarcadero Center Three		1,357			132,726			—			—			—			—			134,083
Democracy Center		1,148			2,421			2,597			91,132			—			—			97,298
Capital Gallery		81,897	(2)		—			—			—			—			—			81,897
One Freedom Square		1,016			2,122			2,245			2,375			2,513			68,753			79,024
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
202, 206 & 214 Carnegie Center		398			845			916			994			56,306			—			59,459
140 Kendrick Street		703			1,466			1,549			1,637			1,730			52,119			59,204
1330 Connecticut Avenue		1,128			2,346			2,452			2,577			2,701			45,021			56,225
New Dominion Technology Park, Building One		654			1,379			1,481			1,594			1,715			49,249			56,072
Reservoir Place		835			1,572			1,666			48,592			—			—			52,665
504, 506 & 508 Carnegie Center		619			1,314			40,914			—			—			—			42,847
10 & 20 Burlington Mall Rd & 91 Hartwell		409			861			925			994			1,069			32,524			36,782
10 Cambridge Center		364			777			844			916			29,677			—			32,578
Sumner Square		305			645			694			747			804			24,691			27,886
1301 New York Avenue		780			1,651			1,781			21,628			—			—			25,840
Eight Cambridge Center		330			702			757			819			22,911			—			25,519
510 Carnegie Center		346			735			23,519			—			—			—			24,600
Reston Corporate Center		352			745			20,524			—			—			—			21,621
University Place		410			864			925			992			1,063			17,359			21,613
Bedford Business Park		417			890			16,859			—			—			—			18,166
Montvale Center		6,661			—			—			—			—			—			6,661

		111,526			403,126			1,272,794			184,450			130,625			809,614			2,912,135

Unsecured Senior Notes		—			—			—			—			—			1,921,266			1,921,266
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	111,526		$	403,126		$	1,272,794		$	184,450		$	130,625		$	2,730,880		$	4,833,401

% of Total Debt		2.31	%		8.34	%		26.33	%		3.82	%		2.70	%		56.50	%		100.00	%
Balloon Payments	$	88,453		$	357,726		$	1,234,782		$	158,698		$	107,339		$	2,669,993		$	4,616,991
Scheduled Amortization	$	23,073		$	45,400		$	38,012		$	25,752		$	23,286		$	60,887		$	216,410

(1)	In July 2005, the Company refinanced the debt on the property through a secured draw on the Company’s revolving line of credit facility. The facility expires on October 30, 2007.

(2)

Amount includes construction financing for the expansion of the property of $32.1 million, which matures in February 2008, and existing mortgage financing of $49.8 million, which matures in August 2006. The Company has assumed it will repay both financings upon the maturity date of the existing financing in August 2006.

Boston Properties, Inc.

Second Quarter 2006

Senior Unsecured Debt Covenant Compliance Ratios

(in thousands)

In the fourth quarter of 2002 the Company’s operating partnership (Boston Properties Limited Partnership) received investment grade ratings on its senior unsecured debt securities and thereafter issued unsecured notes. The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York, as trustee, as supplemented, which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the indenture.

This section presents such ratios as of June 30, 2006 to show that the Company’s operating partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt securities. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.


		June 30, 2006
Total Assets:
Capitalized Property Value		$	11,206,975
Cash and Cash Equivalents			370,396
Undeveloped Land, at Cost			234,181
Development in Process, at Cost (including Joint Venture %)			127,177

Total Assets		$	12,810,792

Unencumbered Assets		$	5,667,164

Secured Debt (Fixed and Variable) (1)		$	2,890,084
Joint Venture Debt			226,800
Contingent Liabilities & Letters of Credit			22,824
Unsecured Debt (2)			1,925,000

Total Outstanding Debt		$	5,064,708

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)		$	53,733
Add: Interest Expense (per Consolidated Income Statement)			78,449
Add: Depreciation and Amortization (per Consolidated Income Statement)			67,912
Add: Loss from early extinguishment of debt			31,457

EBITDA			231,551
Add: Company share of unconsolidated joint venture EBITDA			7,118

Consolidated EBITDA		$	238,669

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)		$	78,449
Add: Company share of unconsolidated joint venture interest expense			3,586
Less: Amortization of financing costs			(1,196	)
Less: Interest expense funded by construction loan draws			(238	)

Adjusted Interest Expense		$	80,601


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		42.4	%
Secured Debt/Total Assets	Less than 50%		26.1	%
Interest Coverage (Annualized Consolidated EBITDA to
Annualized Interest Expense)	Greater than 1.50x		2.96
Unencumbered Assets/ Unsecured Debt	Greater than 150%		294.4	%

Unencumbered Consolidated EBITDA		$	107,574

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			4.11

% of unencumbered Consoidated EBITDA to Consolidated EBITDA			45.1	%

# of unencumbered properties			73

(1)	Excludes Fair Value Adjustment of $22,051.

(2)	Excludes Debt Discount of $3,734.

Boston Properties, Inc.

Second Quarter 2006


*UNCONSOLIDATED JOINT VENTURES*

*Balance Sheet Information*
(unaudited and in thousands)
as of June 30, 2006

	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue			Wisconsin Place (1)(2)			505 9th Street (1)			Value- Added Fund (3)			New York Land Venture (1)			Combined
Total Equity (4)	$	7,364		$	33,884		$	20,019		$	1,266		$	5,936		$	21,585		$	4,981		$	1,927		$	96,962

Mortgage/Construction loans payable (4)	$	45,566		$	67,088		$	21,273		$	42,500		$	12,909		$	9,539		$	16,125		$	11,800		$	226,800

BXP’s nominal ownership percentage		50.00	%		51.00	%		35.00	%		25.00	%		23.89	%		50.00	%		25.00	%		50.00	%


*Results of Operations*
(unaudited and in thousands)
for the three months ended June 30, 2006

	Market Square North		Metropolitan Square		265 Franklin Street			901 New York Avenue			Wisconsin Place (1)(2)		505 9th Street (1)		Value- Added Fund (3)			New York Land Venture (1)			Combined
REVENUE
Total revenue	$	5,388	$	8,099	$	3,174		$	7,611		$	—	$	—	$	2,316		$	—		$	26,588	(5)

EXPENSES
Operating		1,782		2,281		1,176			2,529			—		—		755			25			8,548

SUBTOTAL		3,606		5,818		1,998			5,082			—		—		1,561			(25	)		18,040
Interest		1,767		2,710		988			2,232			—		—		1,009			329			9,035
Depreciation and amortization		1,255		1,290		1,214			1,400			—		—		828			—			5,987

NET INCOME/(LOSS)	$	584	$	1,818	$	(204	)	$	1,450		$	—	$	—	$	(276	)	$	(354	)	$	3,018

BXP’s share of net income/(loss)	$	292	$	928	$	(71	)	$	776	(6)	$	—	$	—	$	(70	)	$	(178	)	$	1,677
BXP’s share of depreciation & amortization		628		658		425			363			—		—		208			—			2,282

BXP’s share of Funds from Operations (FFO)	$	920	$	1,586	$	354		$	1,139		$	—	$	—	$	138		$	(178	)	$	3,959

(1)	Property is currently not in service (i.e., under construction or undeveloped land).

(2)

Represents the Company’s interest in the joint venture entity that owns the land and infrastructure, as well as a nominal interest in the retail component of the project. The entity that will develop the office component of the project, of which the Company has a 66.67% interest, has been consolidated within the accounts of the Company.

(3)	For additional information on the Value-Added Fund, see page 19. Information presented includes costs which relate to the organization and operations of the Value-Added Fund.

(4)	Represents the Company’s share.

(5)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $1,942 and ($93), respectively for the three months ended June 30, 2006.

(6)	Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.

Boston Properties, Inc.

Second Quarter 2006


**UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS ()***

*Debt Maturities and Principal Payments by Property*
*(in thousands)*

Property	2006			2007			2008			2009			2010			Thereafter			Total
Metropolitan Square (51%)	$	460		$	978		$	1,061		$	1,152		$	63,437		$	—		$	67,088
Market Square North (50%)		510			1,081			1,167			1,260			41,548			—			45,566
901 New York Avenue (25%)		—			—			554			635			669			40,642			42,500
265 Franklin Street (35%)		—			21,273			—			—			—			—			21,273	(1)
Wisconsin Place (23.89%)		(61	)		1,429			1,395			10,146						—			12,909	(2)
New York Land Venture (50%)		—			—			11,800			—			—			—			11,800
505 9th Street (50%)		—			—			—			—			—			9,539			9,539	(3)

	$	909		$	24,761		$	15,977		$	13,193		$	105,654		$	50,181		$	210,675

Weighted Average Rate (2)		7.95	%		6.38	%		7.40	%		6.85	%		8.00	%		5.35	%		7.06	%

% of Total Debt		0.43	%		11.75	%		7.58	%		6.26	%		50.15	%		23.82	%		100.00	%

Floating and Fixed Rate Debt Analysis



	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	23.47	%	6.65	%	1.7 years
Fixed Rate Debt	76.53	%	7.18	%	5.5 years

Total Debt	100.00	%	7.06	%	4.7 years

(*)	All amounts represent the Company’s share. Amounts exlcude the Value-Added Fund, see page 19 for additional information on debt pertaining to the Value-Added Fund.

(1)	The loan facility allows the venture to borrow an additional $9.2 million (of which the Company’s share is $3.2 million).

(2)

Approximately $10.1 million represents construction loan financing which matures in 2009. The remaining amount represents a seller financed non-interest bearing purchase money mortgage and includes adjustments to reflect the fair value of the note. The weighted-average interest rates exclude the impact of this loan.

(3)

Amount represents construction financing comprised of a $60.0 million loan commitment (of which the Company’s share is $30.0 million) which bears interest at a fixed rate of 5.73% per annum and a $35.0 million loan commitment (of which the Company’s share is $17.5 million) which bears interest at a variable rate of LIBOR plus 1.25% per annum. The financing is convertible to a ten-year fixed rate loan in October 2007 at an interest rate of 5.73% per annum with a provision for an increase in the borrowing capacity by $35.0 million (of which the Company’s share would be $17.5 million). The conversion is subject to conditions which the Company expects to satisfy.

Boston Properties, Inc.

Second Quarter 2006

Boston Properties Office Value-Added Fund, L.P.

On October 25, 2004, the Company formed Boston Properties Office Value-Added Fund, L.P. (the “Value-Added Fund”), a strategic partnership with third parties, to pursue the acquisition of value-added investments in non-core office assets within the Company’s existing markets. The Company intends to leverage its regional operating platform to source and acquire properties that will generate opportunity for value creation through repositioning, capital improvements and/or leasing strategies. The Value-Added Fund has total equity commitments of $140 million. Assuming an estimated 65% leverage ratio, the Value-Added Fund could have up to $400 million of total investments. The Company will receive asset management, property management, leasing and redevelopment fees and, if certain return thresholds are achieved, will be entitled to an additional promoted interest.

The Company’s interest in the Value-Added Fund is 25%. The investment in the Value-Added Fund is not included in the Company’s portfolio information tables or any other portfolio level statistics.

Property Information


Property Name	Number of Buildings	Square Feet	Leased %		Annual Revenue per leased SF		Mortgage Notes Payable (1)
Worldgate Plaza, Herndon, VA	4	322,328	75.0	%	$	33.15	$	14,250	(2)
300 Billerica Road, Chelmsford, MA	1	110,882	100.0	%		6.67		1,875	(3)

Total	5	433,210	81.4	%	$	24.83	$	16,125

Results of Operations

(unaudited and in thousands)

for the three months ended June 30, 2006


	Value-Added Fund
REVENUE

Total revenue (4)	$	2,316

EXPENSES
Operating		755

SUBTOTAL		1,561

Interest		1,009
Depreciation and amortization		828

NET LOSS	$	(276	)

BXP’s share of net loss	$	(70	)
BXP’s share of depreciation & amortization		208

BXP’s share of Funds from Operations (FFO)	$	138

The Company’s Equity in the Value-Added Fund	$	4,981

(1)	Represents the Company’s share.

(2)	The mortgage bears interest at LIBOR plus 0.89% per annum and matures December 1, 2007 with two one-year extension options. As of June 30, 2006, the interest rate was 6.03% per annum.

(3)	The mortgage bears interest at a fixed rate of 5.69% and matures on January 1, 2016.

(4)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $110 and ($93), respectively for the three months ended June 30, 2006.

Boston Properties, Inc.

Second Quarter 2006

PORTFOLIO OVERVIEW

Rentable Square Footage and Percentage of Consolidated Net Operating Income of In-Service Properties by Location and Type of Property

for the Quarter Ended June 30, 2006 (1) (2)


Geographic Area	Square Feet Office (3)		% of NOI Office (4)		Square Feet Office/ Technical		% of NOI Office/ Technical (4)		Square Feet Total		Square Feet % of Total		% of NOI Hotel (4)		% of NOI Total (4)
Greater Boston	8,042,781	(5)	20.5	%	776,234		2.4	%	8,819,015		29.1	%	3.0	%	25.9	%
Greater Washington	7,466,904	(6)	17.5	%	858,583		1.3	%	8,325,487		27.5	%	—		18.8	%
Greater San Francisco	4,206,214		11.8	%	—		—		4,206,214		13.9	%	—		11.8	%
Midtown Manhattan	6,616,034		39.6	%	—		—		6,616,034		21.8	%	—		39.6	%
Princeton/East Brunswick, NJ	2,319,229		3.9	%	—		—		2,319,229		7.7	%	—		3.9	%

	28,651,162		93.3	%	1,634,817		3.7	%	30,285,979		100.0	%	3.0	%	100.0	%

% of Total	94.6	%			5.4	%			100.0	%

Percentage of Net Operating Income of In-Service Properties

by Location and Type of Property (2) (4)


Geographic Area	CBD		Suburban		Total
Greater Boston	18.8	%	7.1	%	25.9	%
Greater Washington	5.9	%	12.9	%	18.8	%
Greater San Francisco	10.2	%	1.6	%	11.8	%
Midtown Manhattan	39.6	%	—		39.6	%
Princeton/East Brunswick, NJ	—		3.9	%	3.9	%

Total	74.5	%	25.5	%	100.0	%

Hotel Properties


Hotel Properties	Number of Rooms	Square Feet
Long Wharf Marriott, Boston, MA	402	420,000
Cambridge Center Marriott, Cambridge, MA	431	330,400

Total Hotel Properties	833	750,400

Structured Parking


	Number of Spaces	Square Feet
Total Structured Parking	31,837	9,759,342

(1)	For disclosures relating to our definition of In-Service Properties, see page 51.

(2)	For a quantitative reconciliation of consolidated net operating income (NOI) to net income available to common shareholders, see page 44. For disclosures relating to our use of NOI see page 51. NOI from unconsolidated joint ventures has been excluded from consolidated NOI.

(3)	Includes approximately 1,300,000 square feet of retail space.

(4)	The calculation for percentage of Net Operating Income excludes termination income.

(5)	Includes 347,211 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

(6)	Includes 586,478 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 539,229 square feet at 901 New York Avenue which is 25% owned by Boston Properties.

Boston Properties, Inc.

Second Quarter 2006

In-Service Property Listing

as of June 30, 2006


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Boston
Office
800 Boylston Street - The Prudential Center	CBD Boston MA	1	1,183,449	87.5	%	$	37.86	Y	CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	857,386	100.0	%		52.01	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,939	94.1	%		35.74	Y	CBD
The Shops at the Prudential Center	CBD Boston MA	1	499,101	92.0	%		64.41	Y(1)	CBD
Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		44.96	N	CBD
265 Franklin Street (35% ownership)	CBD Boston MA	1	347,211	90.9	%		45.45	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	77.7	%		39.70	N	CBD
Three Cambridge Center	East Cambridge MA	1	108,152	100.0	%		28.90	N	CBD
Eight Cambridge Center	East Cambridge MA	1	177,226	100.0	%		35.12	Y	CBD
Ten Cambridge Center	East Cambridge MA	1	152,664	100.0	%		36.80	Y	CBD
Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		45.41	N	CBD
University Place	Mid-Cambridge MA	1	196,007	99.6	%		38.57	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	526,998	87.2	%		30.29	Y	S
Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	97.5	%		27.27	N	S
140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.46	Y	S
(2) Prospect Place	Route 128 Mass Turnpike MA	1	296,436	68.4	%		26.48	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	92.4	%		28.32	N	S
195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		48.62	N	S
200 West Street	Route 128 Mass Turnpike MA	1	248,048	98.0	%		37.90	N	S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	96.1	%		34.17	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	85.8	%		21.90	Y	S
Bedford Business Park	Route 128 Northwest MA	1	89,961	16.3	%		20.65	Y	S
32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		29.31	N	S
91 Hartwell Avenue	Route 128 Northwest MA	1	121,425	90.9	%		24.21	Y	S
92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		53.25	N	S
100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		21.15	N	S
33 Hayden Avenue	Route 128 Northwest MA	1	80,128	100.0	%		30.20	N	S
Lexington Office Park	Route 128 Northwest MA	2	166,689	94.3	%		24.17	N	S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		30.29	N	S
181 Spring Street	Route 128 Northwest MA	1	55,793	89.8	%		31.81	N	S
201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		37.12	N	S
40 Shattuck Road	Route 128 Northwest MA	1	120,000	95.6	%		29.86	N	S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		22.04	N	S
Newport Office Park	Route 128 South MA	1	170,013	100.0	%		23.36	N	S

		41	8,042,781	92.3	%	$	37.52

Office/Technical
(2) Seven Cambridge Center	East Cambridge MA	1	231,028	100.0	%		75.47	N	CBD
Fourteen Cambridge Center	East Cambridge MA	1	67,362	100.0	%		22.19	N	CBD
Bedford Business Park	Route 128 Northwest MA	2	383,704	100.0	%		16.10	Y	S
17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		14.00	N	S
164 Lexington Road	Route 128 Northwest MA	1	64,140	100.0	%		12.40	N	S

		6	776,234	100.0	%	$	33.91

	Total Greater Boston:	47	8,819,015	93.0	%	$	37.18

Boston Properties, Inc.

Second Quarter 2006

In-Service Property Listing (continued)

as of June 30, 2006


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Washington, DC
Office
(2) Capital Gallery	Southwest Washington DC	1	302,257	94.3	%	$	40.31	Y	CBD
500 E Street, S. W.	Southwest Washington DC	1	246,057	100.0	%		34.83	N	CBD
Metropolitan Square (51% ownership)	East End Washington DC	1	586,478	99.9	%		44.48	Y	CBD
1301 New York Avenue	East End Washington DC	1	188,358	100.0	%		30.75	Y	CBD
Market Square North (50% ownership)	East End Washington DC	1	401,279	100.0	%		50.75	Y	CBD
901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	98.0	%		51.61	Y	CBD
1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		43.27	N	CBD
1330 Connecticut Avenue	CBD Washington DC	1	252,136	99.6	%		49.51	Y	CBD
Sumner Square	CBD Washington DC	1	208,665	87.4	%		40.48	Y	CBD
Democracy Center	Montgomery County MD	3	683,221	75.2	%		31.66	Y	S
Montvale Center	Montgomery County MD	1	122,687	89.1	%		24.55	Y	S
2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		38.10	N	S
Orbital Sciences 1,2&3	Loudoun County	3	337,228	100.0	%		25.29	N	S
One Freedom Square	Fairfax County VA	1	414,170	99.4	%		34.51	Y	S
Two Freedom Square	Fairfax County VA	1	421,676	100.0	%		37.62	N	S
One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		26.11	N	S
Two Reston Overlook	Fairfax County VA	1	134,317	100.0	%		28.39	N	S
One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		39.03	N	S
New Dominion Technology Park - Building One	Fairfax County VA	1	235,201	100.0	%		32.01	Y	S
New Dominion Technology Park - Building Two	Fairfax County VA	1	257,400	100.0	%		40.70	Y	S
Reston Corporate Center	Fairfax County VA	2	261,046	100.0	%		30.90	Y	S
(2) 12290 Sunrise Valley	Fairfax County VA	1	182,424	100.0	%		33.20	N	S
12300 Sunrise Valley	Fairfax County VA	1	255,244	100.0	%		33.45	N	S
12310 Sunrise Valley	Fairfax County VA	1	263,870	100.0	%		32.24	N	S

		30	7,466,904	96.8	%	$	37.76

Office/Technical
Broad Run Business Park	Loudoun County	1	128,646	73.7	%		21.35	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		18.83	N	S
7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		21.39	N	S
7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		20.69	N	S
7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		15.31	N	S
8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		16.92	N	S
7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.92	N	S
7501 Boston Boulevard	Fairfax County VA	1	75,756	100.0	%		23.90	N	S
7601 Boston Boulevard	Fairfax County VA	1	103,750	100.0	%		14.31	N	S
7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		19.62	N	S
8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		16.05	N	S
7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		24.66	N	S

		12	858,583	96.1	%	$	18.55

	Total Greater Washington:	42	8,325,487	96.7	%	$	35.79

Boston Properties, Inc.

Second Quarter 2006

In-Service Property Listing (continued)

as of June 30, 2006


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Midtown Manhattan
Office
599 Lexington Avenue	Park Avenue NY	1	1,016,218	100.0	%	$	67.68	Y (3)	CBD
Citigroup Center	Park Avenue NY	1	1,569,671	99.9	%		66.81	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,689,579	100.0	%		74.29	N	CBD
Times Square Tower	Times Square NY	1	1,238,787	98.7	%		60.85	Y	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.97	N	CBD

	Total Midtown Manhattan:	5	6,616,034	99.7	%	$	65.78

Princeton/East Brunswick, NJ
Office
101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	26.69	N	S
104 Carnegie Center	Princeton NJ	1	102,830	66.7	%		31.75	N	S
105 Carnegie Center	Princeton NJ	1	70,029	81.1	%		29.19	N	S
201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		26.38	N	S
202 Carnegie Center	Princeton NJ	1	128,705	82.3	%		29.90	Y	S
206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		30.81	Y	S
210 Carnegie Center	Princeton NJ	1	161,776	74.5	%		32.11	N	S
211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		29.34	N	S
212 Carnegie Center	Princeton NJ	1	149,398	91.9	%		34.98	N	S
214 Carnegie Center	Princeton NJ	1	150,774	76.8	%		31.02	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		34.89	N	S
502 Carnegie Center	Princeton NJ	1	116,374	91.3	%		33.73	N	S
504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		30.85	Y	S
506 Carnegie Center	Princeton NJ	1	136,213	100.0	%		35.06	Y	S
508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		29.49	Y	S
510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		24.30	Y	S
One Tower Center	East Brunswick NJ	1	412,222	64.9	%		37.16	N	S

	Total Princeton/East Brunswick, NJ:	16	2,319,229	86.5	%	$	31.40

Greater San Francisco
Office
(2) 303 Almaden	San Jose, CA	1	157,537	100.0	%	$	26.90	N	CBD
Embarcadero Center One	CBD San Francisco CA	1	818,711	75.0	%	$	45.76	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	770,231	87.9	%		46.28	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	762,732	90.2	%		40.84	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	934,764	95.0	%		57.50	Y	CBD
611 Gateway	South San Francisco CA	1	256,302	100.0	%		31.04	N	S
601 and 651 Gateway	South San Francisco CA	2	505,937	87.7	%		26.08	N	S

	Total Greater San Francisco:	8	4,206,214	88.6	%	$	43.59

	Total In-Service Properties:	118	30,285,979	94.4	%	$	43.82

(1)	93,797 square feet of space is unencumbered.

(2)	Not included in same property analysis.

(3)	The mortgage loan secured by 599 Lexington Avenue was refinanced through a secured draw on the Company’s revolving line of credit facility, which facility expires on October 30, 2007.

Boston Properties, Inc.

Second Quarter 2006

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION


TOP 20 TENANTS BY SQUARE FEET LEASED						TENANT DIVERSIFICATION (GROSS RENT) *
	Tenant	Sq. Ft.		% of Portfolio
1	US Government	1,624,697	(1)	5.36	%
2	Ernst & Young	1,164,969		3.85	%
3	Citibank NA	1,116,094		3.69	%
4	Lockheed Martin	748,799		2.47	%
5	Shearman & Sterling	585,808		1.93	%
6	Genentech	546,750		1.81	%
7	Gillette	484,051		1.60	%
8	Lehman Brothers	436,723		1.44	%
9	Kirkland & Ellis	420,227	(2)	1.39	%
10	Parametric Technology	380,987		1.26	%
11	Washington Group International	365,245		1.21	%
12	Finnegan Henderson Farabow	349,146	(3)	1.15	%
13	Ann Taylor	338,942		1.12	%
14	Orbital Sciences	337,228		1.11	%
15	Northrop Grumman	327,677		1.08	%
16	Akin Gump Strauss Hauer & Feld	290,132		0.96	%
17	Bingham McCutchen	283,175		0.94	%
18	MIT	276,851		0.91	%
19	O’Melveny & Myers	268,733		0.89	%
20	Accenture	263,878		0.87	%
	Total % of Portfolio Square Feet			35.03	%
	Total % of Portfolio Revenue			37.54	%
Major Future Signed Deals

	Tenant	Property		Sq. Ft.		* The classification of the Company’s tenants is based on the U.S. Government’s North American Industry Classification System (NAICS), which has replaced the Standard Industrial Classification (SIC) system.
	DLA Piper Rudnick Gray Cary US LLP	505 9th Street		231,748	(4)(5)
	HMS Host	Democracy Center		141,919

(1) Includes 96,660 square feet of space in properties in which Boston Properties has a 51% and 50% interest.
(2) Includes 156,576 square feet of space in a property in which Boston Properties has a 51% interest.
(3) Includes 251,941 square feet of space in a property in which Boston Properties has a 25% interest.
(4) Property is currently in development.
(5) Boston Properties has a 50% interest in this property.

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE OFFICE PROPERTIES

Lease Expirations


Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases		Current Annualized Revenues Under Expiring Leases			Current Annualized Revenues Under Expiring Leases p.s.f.			Annualized Revenues Under Expiring Leases with future step-ups			Annualized Revenues Under Expiring Leases with future step-ups - p.s.f.			Percentage of Total Square Feet
2006	527,854		$	21,366,821		$	40.48		$	21,365,355		$	40.48		1.93	%
2007	1,805,097			68,357,350			37.87			68,685,612			38.05		6.60	%
2008	1,588,285			66,681,964			41.98			67,909,263			42.76		5.81	%
2009	2,633,089			99,437,628			37.76			104,336,241			39.63		9.63	%
2010	1,971,941			86,483,459			43.86			90,544,361			45.92		7.21	%
2011	2,452,372			105,493,948			43.02			113,053,326			46.10		8.97	%
2012	2,446,859			113,974,192			46.58			122,590,620			50.10		8.95	%
2013	584,238			22,699,672			38.85			25,176,241			43.09		2.14	%
2014	1,859,416			62,485,690			33.61			70,137,301			37.72		6.80	%
2015	1,472,371			53,662,095			36.45			63,025,888			42.81		5.38	%
Thereafter	8,202,493			429,498,370			52.36			518,895,906			63.26		30.00	%

Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-06		30-Jun-05			30-Jun-06			30-Jun-05			30-Jun-06			30-Jun-05
Midtown Manhattan	99.7	%		97.4	%		n/a			n/a			99.7	%	97.4	%
Greater Boston	93.2	%		92.5	%		91.3	%		90.6	%		92.3	%	91.6	%
Greater Washington	98.2	%		98.0	%		95.8	%		96.7	%		96.8	%	97.2	%
Greater San Francisco	87.8	%		88.8	%		91.8	%		72.2	%		88.6	%	86.0	%
Princeton/East Brunswick, NJ	n/a			n/a			86.5	%		88.4	%		86.5	%	88.4	%

Total Portfolio	95.5	%		94.7	%		92.1	%		91.2	%		94.2	%	93.4	%


	* Includes approximately 1,300,000 square feet of retail space.

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE OFFICE/TECHNICAL PROPERTIES

Lease Expirations


Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases		Current Annualized Revenues Under Expiring Leases			Current Annualized Revenues Under Expiring Leases p.s.f.			Annualized Revenues Under Expiring Leases with future step-ups			Annualized Revenues Under Expiring Leases with future step-ups - p.s.f.			Percentage of Total Square Feet
2006	267,112		$	3,791,240		$	14.19		$	3,791,240		$	14.19		16.34	%
2007	321,900			6,036,179			18.75			6,105,445			18.97		19.69	%
2008	70,440			1,402,747			19.91			1,441,110			20.46		4.31	%
2009	78,908			1,579,541			20.02			1,666,038			21.11		4.83	%
2010	132,510			2,036,218			15.37			2,122,930			16.02		8.11	%
2011	57,321			877,397			15.31			877,397			15.31		3.51	%
2012	67,362			1,494,754			22.19			1,646,319			24.44		4.12	%
2013	80,000			1,665,316			20.82			1,569,316			19.62		4.89	%
2014	285,972			5,211,689			18.22			5,898,872			20.63		17.49	%
2015	—			—			—			—			—		—
Thereafter	225,532			17,292,139			76.67			17,592,097			78.00		13.80	%

*Occupancy By Location*
	CBD					Suburban						Total
Location	30-Jun-06		30-Jun-05			30-Jun-06			30-Jun-05			30-Jun-06			30-Jun-05
Midtown Manhattan	n/a			n/a			n/a			n/a			n/a		n/a
Greater Boston	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	100.0	%
Greater Washington	n/a			n/a			96.1	%		96.1	%		96.1	%	96.1	%
Greater San Francisco	n/a			n/a			n/a			n/a			n/a		n/a
Princeton/East Brunswick, NJ	n/a			n/a			n/a			n/a			n/a		n/a

Total Portfolio	100.0	%		100.0	%		97.5	%		97.5	%		97.9	%	97.6	%

Boston Properties, Inc.

Second Quarter 2006


*IN-SERVICE RETAIL PROPERTIES*

*Lease Expirations*

Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Current Annualized Revenues Under Expiring Leases p.s.f.			Annualized Revenues Under Expiring Leases with future step-ups		Annualized Revenues Under Expiring Leases with future step-ups - p.s.f.			Percentage of Total Square Feet
2006	7,415	$	460,421	$	62.09		$	460,421	$	62.09		0.61	%
2007	62,107	$	5,115,834		82.37	(1)	$	5,429,374		87.42	(1)	5.08	%
2008	66,536	$	3,938,325		59.19		$	4,013,184		60.32		5.44	%
2009	66,475	$	3,350,265		50.40		$	3,408,647		51.28		5.44	%
2010	97,608	$	3,400,391		34.84		$	3,509,463		35.95		7.99	%
2011	60,729	$	3,731,647		61.45		$	4,054,892		66.77		4.97	%
2012	96,714	$	4,918,987		50.86		$	5,361,804		55.44		7.91	%
2013	65,395	$	5,811,701		88.87		$	6,275,328		95.96		5.35	%
2014	49,237	$	4,323,595		87.81		$	4,887,960		99.27		4.03	%
2015	92,275	$	7,961,401		86.28		$	8,696,380		94.24		7.55	%
Thereafter	557,584	$	30,916,354		55.45		$	38,478,885		69.01		45.63	%

(1)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $56.66 and $61.69 in 2007.

Boston Properties, Inc.

Second Quarter 2006


GRAND TOTAL OF ALL IN-SERVICE PROPERTIES

*Lease Expirations*

Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Current Annualized Revenues Under Expiring Leases p.s.f.		Annualized Revenues Under Expiring Leases with future step-ups		Annualized Revenues Under Expiring Leases with future step-ups - p.s.f.		Percentage of Total Square Feet
2006	802,381	$	25,618,482	$	31.93	$	25,617,016	$	31.93	2.6	%
2007	2,189,104		79,509,362		36.32		80,220,432		36.65	7.2	%
2008	1,725,261		72,023,036		41.75		73,363,556		42.52	5.7	%
2009	2,778,472		104,367,434		37.56		109,410,926		39.38	9.2	%
2010	2,202,059		91,920,068		41.74		96,176,754		43.68	7.3	%
2011	2,570,422		110,102,992		42.83		117,985,615		45.90	8.5	%
2012	2,610,935		120,387,933		46.11		129,598,743		49.64	8.6	%
2013	729,633		30,176,689		41.36		33,020,886		45.26	2.4	%
2014	2,194,625		72,020,974		32.82		80,924,134		36.87	7.2	%
2015	1,564,646		61,623,496		39.38		71,722,267		45.84	5.2	%
Thereafter	8,985,609		477,706,863		53.16		574,966,887		63.99	29.7	%



*Occupancy By Location*

	CBD				Suburban				Total
Location	30-Jun-06		30-Jun-05		30-Jun-06		30-Jun-06		30-Jun-05		30-Jun-05
Midtown Manhattan	99.7	%	97.4	%	n/a		n/a		99.7	%	97.4	%
Greater Boston	93.6	%	92.6	%	92.3	%	88.3	%	93.0	%	90.5	%
Greater Washington	98.2	%	98.0	%	95.9	%	96.6	%	96.7	%	97.1	%
Greater San Francisco	87.8	%	88.8	%	91.8	%	72.2	%	88.6	%	86.0	%
Princeton/East Brunswick, NJ	n/a		n/a		86.5	%	88.40		86.5	%	88.4	%

Total Portfolio	95.6	%	94.7	%	92.7	%	90.8	%	94.4	%	93.2	%

Boston Properties, Inc.

Second Quarter 2006


*IN-SERVICE GREATER BOSTON PROPERTIES*

*Lease Expirations - Greater Boston*
	OFFICE										OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot			Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	263,804	$	8,903,928	$	33.75	$	8,902,462	$	33.75		253,704	$	3,525,208	$	13.89	$	3,525,208	$	13.89
2007	654,847		23,245,683		35.50		23,413,319		35.75		144,140		2,201,377		15.27		2,263,447		15.70
2008	681,284		21,689,784		31.84		22,023,296		32.33		—		—		—		—		—
2009	1,331,257		47,652,683		35.80		51,144,943		38.42		—		—		—		—		—
2010	433,887		14,149,113		32.61		14,676,319		33.83		—		—		—		—		—
2011	1,046,397		42,504,529		40.62		46,039,960		44.00		—		—		—		—		—
2012	754,043		28,190,853		37.39		30,112,438		39.93		67,362		1,494,754		22.19		1,646,319		24.44
2013	276,618		12,402,226		44.84		13,580,160		49.09		80,000		1,665,316		20.82		1,569,316		19.62
2014	515,436		18,235,378		35.38		19,401,527		37.64		—		—		—		—		—
2015	201,917		7,818,533		38.72		8,447,079		41.83		—		—		—		—		—
Thereafter	514,684		18,095,204		35.16		23,714,643		46.08		225,532		17,292,139		76.67		17,592,097		78.00

	Retail										Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot			Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—	$	—	$	—	$	—		517,508	$	12,429,136	$	24.02	$	12,427,670	$	24.01
2007	18,675		3,083,858		165.13		3,130,418		167.63	(1)	817,662		28,530,918		34.89		28,807,185		35.23
2008	12,570		1,301,873		103.57		1,313,201		104.47		693,854		22,991,657		33.14		23,336,497		33.63
2009	13,111		1,235,171		94.21		1,244,279		94.90		1,344,368		48,887,854		36.36		52,389,222		38.97
2010	41,531		787,101		18.95		787,101		18.95		475,418		14,936,214		31.42		15,463,420		32.53
2011	14,096		1,022,871		72.56		1,056,760		74.97		1,060,493		43,527,400		41.04		47,096,721		44.41
2012	52,949		2,118,859		40.02		2,163,063		40.85		874,354		31,804,466		36.37		33,921,819		38.80
2013	23,705		2,998,098		126.48		3,131,667		132.11		380,323		17,065,640		44.87		18,281,143		48.07
2014	19,902		2,182,558		109.67		2,342,102		117.68		535,338		20,417,936		38.14		21,743,629		40.62
2015	43,651		5,743,886		131.59		6,110,855		139.99		245,568		13,562,419		55.23		14,557,934		59.28
Thereafter	385,433		14,128,762		36.66		16,358,106		42.44		1,125,649		49,516,105		43.99		57,664,846		51.23

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $58.22 and $62.25 in 2007.

Boston Properties, Inc.

Second Quarter 2006


*IN-SERVICE GREATER BOSTON PROPERTIES*

*Quarterly Lease Expirations - Greater Boston*

	OFFICE										OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot			Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—		—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—		—		—		—		—		—
Q3 2006	168,889		5,664,241		33.54		5,664,241		33.54		253,704		3,525,208		13.89		3,525,208		13.89
Q4 2006	94,915		3,239,687		34.13		3,238,221		34.12		—		—		—		—		—

Total 2006	263,804	$	8,903,928	$	33.75	$	8,902,462	$	33.75		253,704		3,525,208		13.89		3,525,208		13.89

Q1 2007	111,072	$	3,580,063	$	32.23	$	3,580,063	$	32.23		—	$	—	$	—	$	—	$	—
Q2 2007	167,782		6,076,629		36.22		6,091,845		36.31		—		—		—		—		—
Q3 2007	81,744		3,645,036		44.59		3,633,207		44.45		144,140		2,201,377		15.27		2,263,447		15.70
Q4 2007	294,249		9,943,954		33.79		10,108,204		34.35		—		—		—		—		—

Total 2007	654,847	$	23,245,683	$	35.50	$	23,413,319	$	35.75		144,140		2,201,377		15.27		2,263,447		15.70


	Retail										Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot			Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—		—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—		—		—		—		—		—
Q3 2006	—		—		—		—		—		422,593		9,189,449		21.75		9,189,449		21.75
Q4 2006	—		—		—		—		—		94,915		3,239,687		34.13		3,238,221		34.12

Total 2006	—		—	$	—	$	—	$	—		517,508	$	12,429,136	$	24.02	$	12,427,670	$	24.01

Q1 2007	12,559	$	1,213,645.56	$	96.64		1,180,046	$	93.96		123,631	$	4,793,709	$	38.77	$	4,760,109	$	38.50
Q2 2007	1,697		468,277		275.94		450,277		265.34		169,479		6,544,906		38.62		6,542,122		38.60
Q3 2007	11		526,501		47,863.72		544,501		49,500.09		225,895		6,372,914		28.21		6,441,155		28.51
Q4 2007	4,408		875,435		198.60		955,595		216.79		298,657		10,819,389		36.23		11,063,799		37.05

Total 2007	18,675	$	3,083,858.28	$	165.13	$	3,130,418.28	$	167.63	(1)	817,662	$	28,530,918	$	34.89	$	28,807,185	$	35.23

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $58.22 and $62.25 in 2007.

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE GREATER WASHINGTON PROPERTIES

Lease Expirations - Greater Washington


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	58,076	$	2,016,060	$	34.71	$	2,016,060	$	34.71	13,408	$	266,032	$	19.84	$	266,032	$	19.84
2007	376,835		13,333,720		35.38		13,390,614		35.53	177,760		3,834,802		21.57		3,841,998		21.61
2008	210,234		7,204,616		34.27		7,500,416		35.68	70,440		1,402,747		19.91		1,441,110		20.46
2009	793,595		28,685,292		36.15		29,473,941		37.14	78,908		1,579,541		20.02		1,666,038		21.11
2010	919,743		36,447,351		39.63		38,931,100		42.33	132,510		2,036,218		15.37		2,122,930		16.02
2011	740,748		25,764,895		34.78		28,724,836		38.78	57,321		877,397		15.31		877,397		15.31
2012	793,186		29,138,605		36.74		33,225,259		41.89	—		—		—		—		—
2013	62,139		1,806,303		29.07		2,119,246		34.10	—		—		—		—		—
2014	426,087		15,662,399		36.76		18,621,766		43.70	285,972		5,211,689		18.22		5,898,872		20.63
2015	710,870		26,892,422		37.83		32,225,757		45.33	—		—		—		—		—
Thereafter	1,941,953		79,588,120		40.98		96,090,162		49.48	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—	$	—	$	—	$	—	71,484	$	2,282,092	$	31.92	$	2,282,092	$	31.92
2007	12,618		389,499		30.87		395,370		31.33	567,213		17,558,020		30.95		17,627,982		31.08
2008	18,152		772,376		42.55		793,255		43.70	298,826		9,379,740		31.39		9,734,780		32.58
2009	22,679		741,939		32.71		769,305		33.92	895,182		31,006,773		34.64		31,909,284		35.65
2010	18,410		712,823		38.72		772,247		41.95	1,070,663		39,196,392		36.61		41,826,277		39.07
2011	15,459		716,678		46.36		741,784		47.98	813,528		27,358,970		33.63		30,344,018		37.30
2012	7,519		173,706		23.10		195,877		26.05	800,705		29,312,311		36.61		33,421,136		41.74
2013	13,377		629,638		47.07		734,208		54.89	75,516		2,435,941		32.26		2,853,454		37.79
2014	9,602		419,396		43.68		495,769		51.63	721,661		21,293,484		29.51		25,016,407		34.67
2015	17,701		732,382		41.38		905,823		51.17	728,571		27,624,804		37.92		33,131,580		45.47
Thereafter	30,289		1,128,908		37.27		1,638,978		54.11	1,972,242		80,717,029		40.93		97,729,140		49.55

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE GREATER WASHINGTON PROPERTIES

Quarterly Lease Expirations - Greater Washington


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	39,004		1,517,631		38.91		1,517,631		38.91	—		—		—		—		—
Q4 2006	19,072		498,430		26.13		498,430		26.13	13,408		266,032		19.84		266,032		19.84

Total 2006	58,076	$	2,016,060	$	34.71	$	2,016,060	$	34.71	13,408	$	266,032	$	19.84	$	266,032	$	19.84

Q1 2007	48,233	$	1,686,102	$	34.96	$	1,686,102	$	34.96	—	$	—	$	—	$	—	$	—
Q2 2007	49,023		1,974,794		40.28		1,978,304		40.35	14,338		225,545		15.73		225,545		15.73
Q3 2007	257,600		8,907,200		34.58		8,938,616		34.70	52,050		1,073,679		20.63		1,073,679		20.63
Q4 2007	21,979		765,623		34.83		787,591		35.83	111,372		2,535,577		22.77		2,542,774		22.83

Total 2007	376,835	$	13,333,720	$	35.38	$	13,390,614	$	35.53	177,760	$	3,834,802	$	21.57	$	3,841,998	$	21.61


	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	—		—		—		—		—	39,004		1,517,631		38.91		1,517,631		38.91
Q4 2006	—		—		—		—		—	32,480		764,462		23.54		764,462		23.54

Total 2006	—	$	—	$	—		—	$	—	71,484	$	2,282,092	$	31.92		2,282,092	$	31.92

Q1 2007	752	$	26,436	$	35.15	$	26,436	$	35.15	48,985	$	1,712,539	$	34.96	$	1,712,539	$	34.96
Q2 2007	7,393		129,939		17.58		131,613		17.80	70,754		2,330,278		32.93		2,335,463		33.01
Q3 2007	—		—		—		—		—	309,650		9,980,879		32.23		10,012,296		32.33
Q4 2007	4,473		233,124		52.12		237,320		53.06	137,824		3,534,324		25.64		3,567,685		25.89

Total 2007	12,618	$	389,499	$	30.87	$	395,370	$	31.33	567,213	$	17,558,020	$	30.95	$	17,627,982	$	31.08

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Lease Expirations - Greater San Francisco


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	178,159	$	9,267,704	$	52.02	$	9,267,704	$	52.02	—	$	—	$	—	$	—	$	—
2007	362,375		15,862,714		43.77		15,893,991		43.86	—		—		—		—		—
2008	292,181		11,014,935		37.70		11,258,506		38.53	—		—		—		—		—
2009	151,156		6,742,500		44.61		6,856,150		45.36	—		—		—		—		—
2010	192,230		10,917,948		56.80		11,590,298		60.29	—		—		—		—		—
2011	239,624		19,832,408		82.76		20,169,478		84.17	—		—		—		—		—
2012	154,714		7,111,024		45.96		7,755,623		50.13	—		—		—		—		—
2013	108,232		4,031,345		37.25		4,587,339		42.38	—		—		—		—		—
2014	394,987		13,727,871		34.76		15,548,193		39.36	—		—		—		—		—
2015	339,570		10,658,663		31.39		12,960,042		38.17	—		—		—		—		—
Thereafter	1,040,148		40,736,463		39.16		47,399,582		45.57	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	6,756	$	377,194	$	55.83	$	377,194	$	55.83	184,915	$	9,644,898	$	52.16	$	9,644,898	$	52.16
2007	18,428		1,164,551		63.19		1,190,756		64.62	380,803		17,027,266		44.71		17,084,748		44.87
2008	34,132		1,797,622		52.67		1,836,497		53.81	326,313		12,812,557		39.26		13,095,003		40.13
2009	30,685		1,373,154		44.75		1,395,063		45.46	181,841		8,115,654		44.63		8,251,213		45.38
2010	37,667		1,900,468		50.45		1,950,115		51.77	229,897		12,818,416		55.76		13,540,413		58.90
2011	16,624		679,568		40.88		750,815		45.16	256,248		20,511,975		80.05		20,920,294		81.64
2012	30,196		1,904,521		63.07		2,135,562		70.72	184,910		9,015,544		48.76		9,891,185		53.49
2013	13,800		828,148		60.01		896,395		64.96	122,032		4,859,493		39.82		5,483,734		44.94
2014	8,365		534,042		63.84		591,420		70.70	403,352		14,261,913		35.36		16,139,612		40.01
2015	30,923		1,485,134		48.03		1,679,701		54.32	370,493		12,143,797		32.78		14,639,744		39.51
Thereafter	2,391		160,199		67.00		175,894		73.57	1,042,539		40,896,662		39.23		47,575,476		45.63

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Quarterly Lease Expirations - Greater San Francisco


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	50,883		2,744,065		53.93		2,744,065		53.93	—		—		—		—		—
Q4 2006	127,276		6,523,639		51.26		6,523,639		51.26	—		—		—		—		—

Total 2006	178,159	$	9,267,704	$	52.02	$	9,267,704	$	52.02	—		—		—		—		—

Q1 2007	35,182	$	1,129,431	$	32.10	$	1,129,431	$	32.10	—	$	—	$	—	$	—	$	—
Q2 2007	161,362		7,385,222		45.77		7,390,210		45.80	—		—		—		—		—
Q3 2007	97,877		4,375,429		44.70		4,379,777		44.75	—		—		—		—		—
Q4 2007	67,954		2,972,633		43.74		2,994,574		44.07	—		—		—		—		—

Total 2007	362,375	$	15,862,714	$	43.77	$	15,893,991	$	43.86	—		—		—		—		—


	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	2,294		209,808		91.46		209,808		91.46	53,177		2,953,873		55.55		2,953,873		55.55
Q4 2006	4,462		167,386		37.51		167,386		37.51	131,738		6,691,025		50.79		6,691,025		50.79

Total 2006	6,756	$	377,194	$	55.83	$	377,194	$	55.83	184,915	$	9,644,898	$	52.16	$	9,644,898	$	52.16

Q1 2007	4,593	$	196,360	$	42.75	$	196,360	$	42.75	39,775	$	1,325,791	$	33.33	$	1,325,791		33.33
Q2 2007	1,611		140,592		87.27		140,592		87.27	162,973		7,525,814		46.18		7,530,803		46.21
Q3 2007	10,288		690,684		67.13		716,889		69.68	108,165		5,066,112		46.84		5,096,665		47.12
Q4 2007	1,936		136,915		70.72		136,915		70.72	69,890		3,109,548		44.49		3,131,489		44.81

Total 2007	18,428		1,164,551		63.19		1,190,756		64.62	380,803	$	17,027,266	$	44.71	$	17,084,748	$	44.87

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Lease Expirations - Midtown Manhattan


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	8,157	$	517,829	$	63.48	$	517,829	$	63.48	—	$	—	$	—	$	—	$	—
2007	53,852		3,776,784		70.13		3,782,946		70.25	—		—		—		—		—
2008	390,755		26,330,646		67.38		26,671,230		68.26	—		—		—		—		—
2009	112,248		8,082,942		72.01		8,160,911		72.70	—		—		—		—		—
2010	288,970		20,201,044		69.91		20,491,774		70.91	—		—		—		—		—
2011	94,511		6,337,986		67.06		6,727,174		71.18	—		—		—		—		—
2012	739,416		49,349,851		66.74		51,303,816		69.38	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	4,172		240,307		57.60		287,451		68.90	—		—		—		—		—
2015	65,862		4,154,187		63.07		4,519,547		68.62	—		—		—		—		—
Thereafter	4,636,357		288,855,329		62.30		349,145,024		75.31	—		—		—		—		—


	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	659	$	83,227	$	126.29	$	83,227	$	126.29	8,816	$	601,056	$	68.18	$	601,056	$	68.18
2007	12,386		477,925		38.59		712,829		57.55	66,238		4,254,709		64.23		4,495,775		67.87
2008	1,682		66,453		39.51		70,230		41.75	392,437		26,397,099		67.26		26,741,461		68.14
2009	—		—		—		—		—	112,248		8,082,942		72.01		8,160,911		72.70
2010	—		—		—		—		—	288,970		20,201,044		69.91		20,491,774		70.91
2011	14,550		1,312,531		90.21		1,505,532		103.47	109,061		7,650,516		70.15		8,232,706		75.49
2012	6,050		721,901		119.32		867,303		143.36	745,466		50,071,752		67.17		52,171,118		69.98
2013	14,513		1,355,817		93.42		1,513,058		104.26	14,513		1,355,817		93.42		1,513,058		104.26
2014	11,368		1,187,598		104.47		1,458,669		128.31	15,540		1,427,906		91.89		1,746,120		112.36
2015	—		—		—		—		—	65,862		4,154,187		63.07		4,519,547		68.62
Thereafter	139,471		15,498,485		111.12		20,305,907		145.59	4,775,828		304,353,814		63.73		369,450,930		77.36

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Quarterly Lease Expirations - Midtown Manhattan


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	8,157		517,829		63.48		517,829		63.48	—		—		—		—		—
Q4 2006	—		—		—		—		—	—		—		—		—		—

Total 2006	8,157	$	517,829	$	63.48	$	517,829	$	63.48	—	$	—	$	—	$	—	$	—

Q1 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—		—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	53,852		3,776,784		70.13		3,782,946		70.25	—		—		—		—		—
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	53,852	$	3,776,784	$	70.13	$	3,782,946	$	70.25	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	350		26,166		74.76		26,166		74.76	8,507		543,995		63.95		543,995		63.95
Q4 2006	309		57,061		184.66		57,061		184.66	309		57,061		184.66		57,061		184.66

Total 2006	659	$	83,227	$	126.29	$	83,227	$	126.29	8,816	$	601,056	$	68.18	$	601,056	$	68.18

Q1 2007	12,386	$	477,924.96	$	38.59		712,829	$	57.55	12,386	$	477,924.96	$	38.59		712,829	$	57.55
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	—		—		—		—		—	53,852		3,776,784		70.13		3,782,946		70.25
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	12,386	$	477,925	$	38.59	$	712,829	$	57.55	66,238	$	4,254,709	$	64.23	$	4,495,775	$	67.87

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES


*Lease Expirations - Princeton/East Brunswick*
	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	19,658	$	661,299	$	33.64	$	661,299	$	33.64	—	$	—	$	—	$	—	$	—
2007	357,188		12,138,449		33.98		12,204,742		34.17	—		—		—		—		—
2008	13,831		441,984		31.96		455,815		32.96	—		—		—		—		—
2009	244,833		8,274,211		33.80		8,700,296		35.54	—		—		—		—		—
2010	137,111		4,768,003		34.77		4,854,870		35.41	—		—		—		—		—
2011	331,092		11,054,130		33.39		11,391,878		34.41	—		—		—		—		—
2012	5,500		183,859		33.43		193,484		35.18	—		—		—		—		—
2013	137,249		4,459,798		32.49		4,889,497		35.63	—		—		—		—		—
2014	518,734		14,619,735		28.18		16,278,366		31.38	—		—		—		—		—
2015	154,152		4,138,290		26.85		4,873,463		31.61	—		—		—		—		—
Thereafter	69,351		2,223,253		32.06		2,546,496		36.72	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—	$	—	$	—	$	—	19,658	$	661,299	$	33.64	$	661,299	$	33.64
2007	—		—		—		—		—	357,188		12,138,449		33.98		12,204,742		34.17
2008	—		—		—		—		—	13,831		441,984		31.96		455,815		32.96
2009	—		—		—		—		—	244,833		8,274,211		33.80		8,700,296		35.54
2010	—		—		—		—		—	137,111		4,768,003		34.77		4,854,870		35.41
2011	—		—		—		—		—	331,092		11,054,130		33.39		11,391,878		34.41
2012	—		—		—		—		—	5,500		183,859		33.43		193,484		35.18
2013	—		—		—		—		—	137,249		4,459,798		32.49		4,889,497		35.63
2014	—		—		—		—		—	518,734		14,619,735		28.18		16,278,366		31.38
2015	—		—		—		—		—	154,152		4,138,290		26.85		4,873,463		31.61
Thereafter	—		—		—		—		—	69,351		2,223,253		32.06		2,546,496		36.72

Boston Properties, Inc.

Second Quarter 2006

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES


*Quarterly Lease Expirations - Princeton/East Brunswick*
	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	4,251		170,491		40.11		170,491		40.11	—		—		—		—		—
Q4 2006	15,407		490,809		31.86		490,809		31.86	—		—		—		—		—

Total 2006	19,658	$	661,299	$	33.64	$	661,299	$	33.64	—	$	—	$	—	$	—	$	—

Q1 2007	14,590	$	557,890	$	38.24	$	557,890	$	38.24	—	$	—	$	—	$	—	$	—
Q2 2007	12,171		436,475		35.86		436,475		35.86	—		—		—		—		—
Q3 2007	174,663		5,426,935		31.07		5,493,227		31.45	—		—		—		—		—
Q4 2007	155,764		5,717,149		36.70		5,717,149		36.70	—		—		—		—		—

Total 2007	357,188	$	12,138,449	$	33.98	$	12,204,742	$	34.17	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	—		—		—		—		—	4,251		170,491		40.11		170,491		40.11
Q4 2006	—		—		—		—		—	15,407		490,809		31.86		490,809		31.86

Total 2006	—	$	—	$	—	$	—	$	—	19,658	$	661,299	$	33.64	$	661,299	$	33.64

Q1 2007	—	$	—	$	—	$	—	$	—	14,590	$	557,890	$	38.24	$	557,890	$	38.24
Q2 2007	—		—		—		—		—	12,171		436,475		35.86		436,475		35.86
Q3 2007	—		—		—		—		—	174,663		5,426,935		31.07		5,493,227		31.45
Q4 2007	—		—		—		—		—	155,764		5,717,149		36.70		5,717,149		36.70

Total 2007	—	$	—	$	—	$	—	$	—	357,188	$	12,138,449	$	33.98	$	12,204,742	$	34.17

Boston Properties, Inc.

Second Quarter 2006

CBD PROPERTIES


*Lease Expirations*
	Greater Boston											Greater Washington
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases			Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups			Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	56,786	$	2,636,756	(1)	$	46.43	$	2,619,177	(1)	$	46.12	32,476	$	1,347,444	$	41.49	$	1,347,444	$	41.49
2007	169,979	$	10,475,428	(2)		61.63	$	10,537,410	(2)		61.99	280,096		9,985,394		35.65		10,023,431		35.79
2008	203,857	$	8,409,040			41.25	$	8,456,538			41.48	37,944		1,629,730		42.95		1,687,556		44.47
2009	811,128	$	31,074,782			38.31	$	33,576,290			41.39	488,949		18,835,528		38.52		19,490,649		39.86
2010	198,821	$	7,253,661			36.48	$	7,372,281			37.08	438,466		19,714,260		44.96		21,126,827		48.18
2011	559,683	$	30,272,621			54.09	$	32,971,260			58.91	203,859		8,937,418		43.84		9,958,638		48.85
2012	349,861	$	16,455,862			47.04	$	17,388,264			49.70	83,235		3,431,674		41.23		3,443,806		41.37
2013	283,939	$	15,004,656			52.84	$	16,217,855			57.12	4,040		183,935		45.53		218,538		54.09
2014	456,145	$	18,343,526			40.21	$	19,438,140			42.61	63,796		3,197,447		50.12		3,885,715		60.91
2015	230,936	$	13,260,287			57.42	$	14,255,802			61.73	356,839		17,478,854		48.98		20,651,657		57.87
Thereafter	962,949	$	45,991,289			47.76	$	52,558,184			54.58	987,443		48,074,708		48.69		62,259,188		63.05

	New York											San Francisco
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases			Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups			Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	8,816	$	601,056		$	68.18	$	601,056		$	68.18	183,334	$	9,602,211	$	52.38	$	9,602,211	$	52.38
2007	66,238		4,254,709			64.23		4,495,775			67.87	295,897		15,045,075		50.85		15,087,246		50.99
2008	392,437		26,397,099			67.26		26,741,461			68.14	266,379		11,356,869		42.63		11,560,282		43.40
2009	112,248		8,082,942			72.01		8,160,911			72.70	153,593		7,445,209		48.47		7,540,377		49.09
2010	288,970		20,201,044			69.91		20,491,774			70.91	218,865		12,536,246		57.28		13,225,846		60.43
2011	109,061		7,650,516			70.15		8,232,706			75.49	251,030		20,380,482		81.19		20,772,296		82.75
2012	745,466		50,071,752			67.17		52,171,118			69.98	179,170		8,894,800		49.64		9,755,233		54.45
2013	14,513		1,355,817			93.42		1,513,058			104.26	106,265		4,328,885		40.74		4,838,135		45.53
2014	15,540		1,427,906			91.89		1,746,120			112.36	147,050		6,307,204		42.89		7,169,947		48.76
2015	65,862		4,154,187			63.07		4,519,547			68.62	144,489		6,035,149		41.77		6,727,941		46.56
Thereafter	4,775,828		304,353,814			63.73		369,450,930			77.36	883,016		36,356,121		41.17		41,650,511		47.17

	Princeton/East Brunswick											Other
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases			Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups			Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—		$	—	$	—		$	—	—	$	—	$	—	$	—	$	—
2007	—		—			—		—			—	—		—		—		—		—
2008	—		—			—		—			—	—		—		—		—		—
2009	—		—			—		—			—	—		—		—		—		—
2010	—		—			—		—			—	—		—		—		—		—
2011	—		—			—		—			—	—		—		—		—		—
2012	—		—			—		—			—	—		—		—		—		—
2013	—		—			—		—			—	—		—		—		—		—
2014	—		—			—		—			—	—		—		—		—		—
2015	—		—			—		—			—	—		—		—		—		—
Thereafter	—		—			—		—			—	—		—		—		—		—

(1)	Includes 0 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $46.43 and rent on expiring leases with future step-up is $46.12 per square foot in 2006.

(2)	Includes 17,846 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $48.64 and rent on expiring leases with future step-up is $48.74 per square foot in 2007.

Boston Properties, Inc.

Second Quarter 2006

SUBURBAN PROPERTIES


*Lease Expirations*
	Greater Boston									Greater Washington
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	460,722	$	9,792,380	$	21.25	$	9,808,493	$	21.29	39,008	$	934,649	$	23.96	$	934,649	$	23.96
2007	647,683		18,055,490		27.88		18,269,774		28.21	287,117		7,572,626		26.37		7,604,551		26.49
2008	489,997		14,582,616		29.76		14,879,959		30.37	260,882		7,750,009		29.71		8,047,225		30.85
2009	533,240		17,813,072		33.41		18,812,932		35.28	406,233		12,171,245		29.96		12,418,635		30.57
2010	276,597		7,682,552		27.78		8,091,139		29.25	632,197		19,482,132		30.82		20,699,450		32.74
2011	500,810		13,254,779		26.47		14,125,461		28.21	609,669		18,421,551		30.22		20,385,380		33.44
2012	524,493		15,348,604		29.26		16,533,555		31.52	717,470		25,880,637		36.07		29,977,330		41.78
2013	96,384		2,060,984		21.38		2,063,288		21.41	71,476		2,252,006		31.51		2,634,915		36.86
2014	79,193		2,074,409		26.19		2,305,489		29.11	657,865		18,096,037		27.51		21,130,692		32.12
2015	14,632		302,132		20.65		302,132		20.65	371,732		10,145,950		27.29		12,479,923		33.57
Thereafter	162,700		3,524,816		21.66		5,106,661		31.39	984,799		32,642,321		33.15		35,469,952		36.02

	New York									San Francisco
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—	$	—	$	—	$	—	1,581	$	42,687	$	27.00	$	42,687	$	27.00
2007	—		—		—		—		—	84,906		1,982,191		23.35		1,997,501		23.53
2008	—		—		—		—		—	59,934		1,455,688		24.29		1,534,721		25.61
2009	—		—		—		—		—	28,248		670,445		23.73		710,836		25.16
2010	—		—		—		—		—	11,032		282,170		25.58		314,568		28.51
2011	—		—		—		—		—	5,218		131,494		25.20		147,997		28.36
2012	—		—		—		—		—	5,740		120,744		21.04		135,952		23.68
2013	—		—		—		—		—	15,767		530,608		33.65		645,599		40.95
2014	—		—		—		—		—	256,302		7,954,710		31.04		8,969,665		35.00
2015	—		—		—		—		—	226,004		6,108,648		27.03		7,911,803		35.01
Thereafter	—		—		—		—		—	159,523		4,540,541		28.46		5,924,965		37.14

	Princeton/East Brunswick									Other
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	19,658	$	661,299	$	33.64	$	661,299	$	33.64	—	$	—	$	—	$	—	$	—
2007	357,188		12,138,449		33.98		12,204,742		34.17	—		—		—		—		—
2008	13,831		441,984		31.96		455,815		32.96	—		—		—		—		—
2009	244,833		8,274,211		33.80		8,700,296		35.54	—		—		—		—		—
2010	137,111		4,768,003		34.77		4,854,870		35.41	—		—		—		—		—
2011	331,092		11,054,130		33.39		11,391,878		34.41	—		—		—		—		—
2012	5,500		183,859		33.43		193,484		35.18	—		—		—		—		—
2013	137,249		4,459,798		32.49		4,889,497		35.63	—		—		—		—		—
2014	518,734		14,619,735		28.18		16,278,366		31.38	—		—		—		—		—
2015	154,152		4,138,290		26.85		4,873,463		31.61	—		—		—		—		—
Thereafter	69,351		2,223,253		32.06		2,546,496		36.72	—		—		—		—		—

Boston Properties, Inc.

Second Quarter 2006

HOTEL PERFORMANCE

Long Wharf Marriott - Boston


	Second Quarter 2006			Second Quarter 2005			Percent Change		Year to Date 2006			Year to Date 2005			Percent Change
Occupancy		87.5	%		85.8	%	2.0	%		82.6	%		79.2	%	4.3	%
Average Daily Rate	$	268.90		$	232.08		15.9	%	$	228.21		$	204.21		11.8	%
Revenue per available room	$	235.20		$	199.05		18.2	%	$	190.45		$	161.77		17.7	%

Cambridge Center Marriott


	Second Quarter 2006			Second Quarter 2005			Percent Change		Year to Date 2006			Year to Date 2005			Percent Change
Occupancy		80.3	%		78.8	%	1.9	%		68.6	% (1)		72.2	%	-5.0	%
Average Daily Rate	$	216.31		$	191.71		12.8	%	$	187.35		$	169.85		10.3	%
Revenue per available room	$	173.77		$	151.13		15.0	%	$	132.19		$	122.60		7.8	%

(1)	For the six months ended June 30, 2006, the Cambridge Center Marriott underwent a room renovation project which totalled approximately $5.6 million.

Total Hotel Performance


	Second Quarter 2006			Second Quarter 2005			Percent Change		Year to Date 2006			Year to Date 2005			Percent Change
Occupancy		83.4	%		82.2	%	1.5	%		75.3	%		75.6	%	-0.4	%
Average Daily Rate	$	241.69		$	211.19		14.4	%	$	207.07		$	186.43		11.1	%
Revenue per available room	$	203.42		$	174.26		16.7	%	$	160.31		$	141.50		13.3	%

Boston Properties, Inc.

Second Quarter 2006

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾ - By Location


	CBD				Suburban				Total
Location	30-Jun-06		30-Jun-05		30-Jun-06		30-Jun-05		30-Jun-06		30-Jun-05
Greater Boston	93.3	%	92.6	%	94.2	%	91.7	%	93.7	%	92.2	%
Greater Washington	98.6	%	97.8	%	95.7	%	96.6	%	96.7	%	97.0	%
Midtown Manhattan	99.7	%	97.0	%	n/a		n/a		99.7	%	97.0	%
Princeton/East Brunswick, NJ	n/a		n/a		86.5	%	88.4	%	86.5	%	88.4	%
Greater San Francisco	87.2	%	90.9	%	91.8	%	72.2	%	88.1	%	87.4	%

Total Portfolio	95.5	%	94.8	%	93.2	%	91.9	%	94.5	%	93.6	%

Same Property Occupancy⁽¹⁾ - By Type of Property


	CBD				Suburban				Total
	30-Jun-06		30-Jun-05		30-Jun-06		30-Jun-05		30-Jun-06		30-Jun-05
Total Office Portfolio	95.5	%	94.8	%	92.7	%	91.2	%	94.4	%	93.4	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	97.5	%	97.6	%	97.6	%

Total Portfolio	95.5	%	94.8	%	93.2	%	91.9	%	94.5	%	93.6	%

(1)	For disclosures related to our definition of Same Property, see page 51.

Boston Properties, Inc.

Second Quarter 2006

SAME PROPERTY PERFORMANCE

Office, Office/Technical and Hotel Properties


	Office		Office/Technical		Hotel (1)		Total
Number of Properties	96		17		2		115
Square feet	27,712,508		1,403,789		750,400		29,866,697
Percent of in-service properties	96.7	%	85.9	%	100.0	%	96.2	%
Occupancy @ 6/30/2005	93.4	%	97.6	%	—		93.6	%
Occupancy @ 6/30/2006	94.4	%	97.6	%	—		94.5	%
Percent change from 2nd quarter 2006 over 2nd quarter 2005 (2):
Rental revenue	3.9	%	-1.5	%	12.0	%	4.3	%
Operating expenses and real estate taxes	8.2	%	8.5	%	2.2	%	7.5	%
Net Operating Income (3)	1.9	%	-3.9	%	36.1	%	2.6	%
Net Operating Income (3) - without hotels							1.8	%
Rental revenue - cash basis	7.0	%	2.9	%	12.0	%	7.2	%
Net Operating Income (3) - cash basis (4)	6.3	%	1.6	%	36.2	%	7.0	%
Net Operating Income (3) - cash basis (4) - without hotels							6.1	%

Same Property Lease Analysis - quarter ended June 30, 2006


	Office			Office/Technical		Total
Vacant space available @ 4/1/2006 (sf)		1,632,823			33,799		1,666,622
Square footage of leases expiring or terminated 4/1/2006-6/30/2006		804,057			—		804,057

Total space for lease (sf)		2,436,880			33,799		2,470,679

New tenants (sf)		402,401					402,401
Renewals (sf)		475,506			—		475,506

Total space leased (sf)		877,907			—		877,907

Space available @ 6/30/2006 (sf)		1,558,973			33,799		1,592,772

Net (increase)/decrease in available space (sf)		73,850			—		73,850
Average lease term (months)		96			—		96
Average free rent (days)		39			—		39
2nd generation TI/Comm PSF	$	34.59		$	—	$	34.59
Increase (decrease) in 2nd generation gross rents (4)		-14.99	%		—		-14.99	%
Increase (decrease) in 2nd generation net rents (4)		-24.23	%		—		-24.23	%

(1)	Includes revenue and expenses from retail tenants at the hotel properties.

(2)	See page 45 for a quantitative reconciliation of Same Property Net Operating Income (NOI) by reportable segment.

(3)	For a quantitative reconciliation of NOI to net income available to common shareholders, see page 44. For disclosures relating to our use of NOI, see page 51.

(4)	Represents change in rents on a “cash to cash” basis (actual rent at time of expiration vs. initial rent of new lease) and for only 2nd generation space after eliminating any space vacant for more than 12 months. The total footage being weighted is 766,066 square feet.

Boston Properties, Inc.

Second Quarter 2006

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	6/30/2006			6/30/2005
	*(in thousands)*
Net income available to common shareholders	$	626,033		$	165,490
Gains on sales of real estate from discontinued operations, net of minority interest		—			(8,389	)
Income from discontinued operations, net of minority interest		—			(727	)
Gains on sales of real estate, net of minority interest		(581,604	)		(102,073	)
Minority interest in Operating Partnership		11,758			14,596
Income from unconsolidated joint ventures		(1,677	)		(847	)
Minority interest in property partnerships		(777	)		(1,472	)

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		53,733			66,578
Add:
Loss from early entinguishment of debt		31,457			12,896
Depreciation and amortization		67,912			67,026
Interest expense		78,449			78,233
General and administrative expense		15,796			14,252
Subtract:
Interest and other income		(8,565	)		(2,916	)
Development and management services income		(5,230	)		(4,137	)

Consolidated Net Operating Income	$	233,552		$	231,932

Same Property Net Operating Income	$	215,533		$	210,026
Net operating income from non Same Properties (1)		16,619			17,927
Termination income		1,400			3,979

Consolidated Net Operating Income	$	233,552		$	231,932

Same Property Net Operating Income	$	215,533		$	210,026
Less straight-line rent and fair value lease revenue		11,483			19,362

Same Property Net Operating Income - cash basis	$	204,050		$	190,664

(1)	See pages 21-23 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Second Quarter 2006

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical
	For the three months ended				$			%		For the three months ended					$			%
	30-Jun-06		30-Jun-05		Change			Change		30-Jun-06			30-Jun-05		Change			Change
Rental Revenue	$	305,962	$	294,655						$	5,829		$	5,916
Less Termination Income		1,400		1,580							—			—

Rental revenue - subtotal		304,562		293,075		11,487		3.9	%		5,829			5,916		(87	)	-1.5	%
Operating expenses and real estate taxes		100,507		92,879		7,628		8.2	%		1,255			1,157		98		8.5	%

Net Operating Income (1)	$	204,055	$	200,196	$	3,859		1.9	%	$	4,574		$	4,759	$	(185	)	-3.9	%

Rental revenue - subtotal	$	304,562	$	293,075						$	5,829		$	5,916
Less straight line rent and fair value lease revenue		11,659		19,280		(7,621	)	-39.5	%		(178	)		80		(258	)	-322.5	%

Rental revenue - cash basis		292,903		273,795		19,108		7.0	%		6,007			5,836		171		2.9	%
Less:
Operating expenses and real estate taxes		100,507		92,879		7,628		8.2	%		1,255			1,157		98		8.5	%

Net Operating Income (2) - cash basis	$	192,396	$	180,916	$	11,480		6.3	%	$	4,752		$	4,679	$	73		1.6	%


	Hotel									Total
	For the three months ended				$			%		For the three months ended					$			%
	30-Jun-06		30-Jun-05		Change			Change		30-Jun-06			30-Jun-05		Change			Change
Rental Revenue	$	19,674	$	17,566						$	331,465		$	318,137
Less Termination Income		—		—							1,400			1,580

Rental revenue - subtotal		19,674		17,566	$	2,108		12.0	%		330,065			316,557		13,508		4.3	%
Operating expenses and real estate taxes		12,770		12,495		275		2.2	%		114,532			106,531		8,001		7.5	%

Net Operating Income (1)	$	6,904	$	5,071	$	1,833		36.1	%	$	215,533		$	210,026	$	5,507		2.6	%

Rental revenue - subtotal	$	19,674	$	17,566						$	330,065		$	316,557
Less straight line rent and fair value lease revenue		2		2		—		0.0	%		11,483			19,362		(7,879	)	-40.7	%

Rental revenue - cash basis		19,672		17,564		2,108		12.0	%		318,582			297,195		21,387		7.2	%
Less:
Operating expenses and real estate taxes		12,770		12,495		275		2.2	%		114,532			106,531		8,001		7.5	%

Net Operating Income (2) - cash basis	$	6,902	$	5,069	$	1,833		36.2	%	$	204,050		$	190,664	$	13,386		7.0	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income available to common shareholders, see page 44. For disclosures relating to our use of NOI see page 51.

(2)	For a quantitative reconciliation of NOI to NOI on a cash basis see page 44. For disclosures relating to our use of NOI see page 51.

Boston Properties, Inc.

Second Quarter 2006

LEASING ACTIVITY

All In-Service Properties - quarter ended June 30, 2006


	Office			Office/Technical			Total
Vacant space available @ 3/31/2006 (sf)		1,744,006			33,799			1,777,805
Property dispositions/ assets taken out of service (sf)		—			—			—
Property acquisitions/ assets placed in-service (sf)		—			—			—
Leases expiring or terminated 4/1/2006-6/30/2006 (sf)		993,235			—			993,235

Total space for lease (sf)		2,737,241			33,799			2,771,040

New tenants (sf)		591,713			—			591,713
Renewals (sf)		475,506			—			475,506

Total space leased (sf)		1,067,219			—			1,067,219	(1)

Space available @ 3/31/2006 (sf)		1,670,022			33,799			1,703,821

Net (increase)/decrease in available space (sf)		73,984			—			73,984
Average lease term (months)		94			—			94
Average free rent (days)		38			—			38
2nd generation TI/Comm PSF	$	34.00		$	—		$	34.00
Increase (decrease) in 2nd generation gross rents (2)		-14.68	%		0.00	%		-14.68	%
Increase (decrease) in 2nd generation net rents (3)		-23.73	%		0.00	%		-23.73	%

(1)	Details of 1st and 2nd generation space is located in chart below.

(2)	Represents increase (decrease) in gross rent (total base rent and expense reimbursements), comparing the change in rent at lease expiration vs. initial rent of the new lease for 2nd generation space that has been vacant for less than twelve months. The total footage being weighted is 789,419.

(3)	Represents increase (decrease) in net rent (base rent less base year expense), comparing the rent at lease expiration vs. initial rent of the new lease for 2nd generation space that has been vacant for less than twelve months. The total footage being weighted is 789,419.


	All leases 1st Generation	All leases 2nd Generation	Incr (decr) in 2nd gen. gross rents (2)		Incr (decr) in 2nd gen. net rents (3)		Total Leased
Boston	—	208,740	-26.56	%	-38.91	%	208,740
Washington	165,959	47,827	-1.98	%	-3.23	%	213,786
New York	31,669	89,142	42.76	%	57.21	%	120,811
San Francisco	—	281,445	-23.55	%	-36.83	%	281,445
Princeton	—	242,437	-18.08	%	-28.66	%	242,437

	197,628	869,591	-14.68	%	-23.73	%	1,067,219

Boston Properties, Inc.

Second Quarter 2006

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q2 2006			Q1 2006			2005		2004		2003
Recurring capital expenditures	$	5,275		$	4,206		$	22,369	$	25,101	$	18,514

Planned non-recurring capital expenditures associated with acquisition properties		289			220			2,957		4,889		4,464

Hotel improvements, equipment upgrades and replacements		1,988	(1)		4,263	(1)		4,097		1,001		2,345

	$	7,552		$	8,689		$	29,423	$	30,991	$	25,323

2nd Generation Tenant Improvements and Leasing Commissions


	Q2 2006		Q1 2006		2005		2004		2003
Office
Square feet		869,591		454,654		2,749,079		3,356,267		2,635,914

Tenant improvement and lease commissions PSF	$	34.00	$	38.40	$	28.75	$	24.74	$	14.41

Office/Technical
Square feet		—		—		82,753		195,953		169,893

Tenant improvement and lease commissions PSF	$	—	$	—	$	2.89	$	14.35	$	6.43

Average tenant improvement and lease commissions PSF	$	34.00	$	38.40	$	28.00	$	24.17	$	13.93

(1)	Includes approximately $1.6 million and $4.0 million of costs related to a room renovation project at Cambridge Center Marriott for the periods ended June 30, 2006 and March 31, 2006, respectively.

Boston Properties, Inc.

Second Quarter 2006

ACQUISITIONS/DISPOSITIONS

as of June 30, 2006


*ACQUISITIONS*
For the period from January 1, 2006 through June 30, 2006

Property	Date Acquired	Square Feet	Initial Investment			Anticipated Future Investment		Total Investment		Percentage Leased
303 Almaden Avenue, San Jose, CA	Jun-06	157,537	$	45,200,000		$	4,800,000	$	50,000,000		100	%

Total Acquisitions		157,537	$	45,200,000		$	4,800,000	$	50,000,000		—

*DISPOSITIONS*
For the period from January 1, 2006 through June 30, 2006

Property			Date Disposed			Square Feet		Gross Sales Price		Book Gain
Prudential Center - Land Parcel				Feb-05	(1)		N/A	$	51,100,000	$	5,705,000
280 Park Avenue				Jun-06			1,179,000		1,200,000,000		691,116,000

Total Dispositions							1,179,000	$	1,251,100,000	$	696,821,000

(1)	During January 2006, this transaction qualified as a sale for financial reporting purposes as the continuing involvement provisions were satisfied.

Boston Properties, Inc.

Second Quarter 2006


*VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)*
as of June 30, 2006
Development Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Total Construction Loan		Amount Drawn at June 30, 2006		Estimated Future Equity Requirement		Percentage Leased (2)
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		53,747,390		69,100,000		47,225,000		36,056,073		4,183,683	94	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		19,411,756		31,625,638		26,756,800		13,851,525		—	N/A
505 9th Street (50% ownership)	Q4 2007	Q4 2008	Washington, D.C.	1	323,000		29,585,795		65,000,000		47,500,000		9,538,629		—	76	%
South of Market (Phase I)	Q1 2008	Q3 2009	Reston, VA	3	652,000		24,835,203		213,800,000		—		—		188,964,797	20	%

Total Development Properties				4	1,293,557	$	127,580,144	$	379,525,638	$	121,481,800	$	59,446,227	$	193,148,480	52	%


*DEVELOPMENTS PLACED-IN-SERVICE DURING 2006*
	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Debt		Drawn at March 31, 2006		Estimated Future Equity Requirement		Percentage Leased
Seven Cambridge Center Office	Q1 2006	Q1 2006	Cambridge, MA	1	231,028	$	103,403,688	$	106,156,057	$	—	$	—	$	—	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,424	$	37,584,541	$	39,000,000	$	—	$	—	$	1,415,459	100	%

Total Developments Placed in Service				2	413,452	$	140,988,229	$	145,156,057	$	—	$	—	$	1,415,459	100	%

(1)	In accordance with GAAP, a project is classified as a Development in Progress when construction or supply contracts have been signed and physical improvements have commenced.

(2)	Represents percentage leased as of July 26, 2006.

Boston Properties, Inc.

Second Quarter 2006


*VALUE CREATION PIPELINE - OWNED LAND PARCELS*
as of June 30, 2006
Location	Acreage	Developable Square Feet
Rockville, MD	68.9	937,000
Dulles, VA	76.6	934,000
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Reston, VA	34.8	1,378,491
Boston, MA	0.2	304,500
Marlborough, MA	50.0	400,000
Weston, MA	74.0	350,000
Waltham, MA	13.1	586,604
Andover, MA	10.0	110,000
Washington, D.C.	0.5	170,000
Chevy Chase, MD	1.0	300,000

	359.8	7,161,595

*VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS*
as of June 30, 2006
Location	Acreage	Developable Square Feet
Princeton, NJ (1)	149.9	1,900,000
Framingham, MA (2)	21.5	300,000
Cambridge, MA (3)	—	200,000

	171.4	2,400,000

(1)	$30.50 per square foot and $125,000 per annum non-refundable payment.

(2)	Subject to ground lease.

(3)	The Company has the option to purchase additional residential rights.

Boston Properties, Inc.

Second Quarter 2006

Definitions

This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations. Additional detail can be found in the Company’s most recent annual report on Form 10-K and other documents filed with the SEC from time to time.

Funds from Operations

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.

In addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after a specific and defined supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. The adjustment to exclude losses from early extinguishments of debt results when the sale of real estate encumbered by debt requires us to pay the extinguishment costs prior to the debt’s stated maturity and to write-off unamortized loan costs at the date of the extinguishment. Such costs are excluded from the gains on sales of real estate reported in accordance with GAAP. However, we view the losses from early extinguishments of debt associated with the sales of real estate as an incremental cost of the sale transactions because we extinguished the debt in connection with the consummation of the sale transactions and we had no intent to extinguish the debt absent such transactions. We believe that this supplemental adjustment more appropriately reflects the results of our operations exclusive of the impact of our sale transactions.

Although our FFO as adjusted clearly differs from NAREIT’s definition of FFO, and may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance because we believe that, by excluding the effects of the losses from early extinguishments of debt associated with the sales of real estate, management and investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO.

Neither FFO nor FFO as adjusted should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. Neither FFO nor FFO as adjusted represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Funds Available for Distribution (FAD)

In addition to FFO, we present Funds Available for Distribution (FAD) by (1) adding to FFO as adjusted non-real estate depreciation, (2) eliminating the effect of straight-line rent, and (3) subtracting: recurring capital expenditures; hotel improvements, equipment upgrades and replacements; and second generation tenant improvement and leasing commissions. In addition, this calculation includes all non-cash compensation expense related to restricted securities. Although our FAD may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flows in accordance with GAAP, as presented in our consolidated financial statements. FAD does not represent cash generated from operating activities determined in accordance with GAAP, and FAD should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Debt to Total Market Capitalization Ratio

Debt to total market capitalization ratio, defined as total consolidated debt as a percentage of the market value of our outstanding equity securities plus our total consolidated debt, is a measure of leverage commonly used by analysts in the REIT sector. Total market capitalization is the sum of our total indebtedness outstanding on a consolidated basis (excluding unconsolidated joint venture debt) and the market value of our outstanding equity securities calculated using the closing price per share of common stock of the Company multiplied by the sum of (1) the actual aggregate number of outstanding common partnership units of our operating partnership (including common partnership units held by the company) and (2) the number of common partnership units issuable upon conversion of preferred partnership units of our operating partnership. We are presenting this ratio because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Investors should understand that our debt to total market capitalization ratio is in part a function of the market price of the common stock of Boston Properties, Inc., and as such will fluctuate with changes in such price and does not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations. However, for a company like ours, whose assets are primarily income-producing real estate, the debt to total market capitalization ratio may provide investors with an alternate indication of leverage, so long as it is evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to net income available to common shareholders, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, minority interest in Operating Partnership and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, income from discontinued operations, income from unconsolidated joint ventures and minority interest in property partnerships. In some cases we also present NOI on a cash basis, which is NOI after eliminating the effects of straight-lining of rent. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets. Our management also uses NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

In-Service Properties

We treat a property as being “in-service” upon the earlier of (i) lease-up and completion of tenant improvements or (ii) one year after cessation of major construction activity under GAAP. When a property is treated as “in-service”, we cease capitalization of all project costs. The determination as to when a property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics we specify a single date for treating a property as “in-service.” Under GAAP a property may be placed in service in stages as construction is completed and the property is held available for occupancy. In accordance with GAAP, when a portion of a property has been substantially completed and occupied or held available for occupancy, we cease capitalization on that portion, though we may not treat the property as being “in-service,” and continue to capitalize only those costs associated with the portion still under construction.

Same Properties

In our analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired or repositioned after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” See pages 21-23 for “In-Service Properties” which are not included in “Same Properties.”

If you would like to receive this document in a different electronic format, please call investor relations at 617-236-3322.

Press Release

EXHIBIT 99.2

LOGO

111 Huntington Avenue

Boston, MA 02199


AT THE COMPANY		AT FINANCIAL RELATIONS BOARD
Michael Walsh		Marilynn Meek – General Info.
Senior Vice President, Finance		(212) 827-3773
(617) 236-3410

Kathleen DiChiara
Investor Relations Manager
(617) 236-3343

BOSTON PROPERTIES, INC. ANNOUNCES

SECOND QUARTER 2006 RESULTS


Reports diluted FFO per share of $1.10		Reports diluted EPS of $5.24

BOSTON, MA, July 26, 2006 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the second quarter ended June 30, 2006.

Funds from Operations (FFO) for the quarter ended June 30, 2006 were $129.4 million, or $1.14 per share basic and $1.10 per share diluted, after a supplemental adjustment to exclude the loss from early extinguishment of debt associated with the sale of real estate. This compares to FFO for the quarter ended June 30, 2005 of $121.3 million, or $1.10 per share basic and $1.06 per share diluted, after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. Losses from early extinguishments of debt associated with the sales of real estate totaled $0.24 and $0.09 per share basic and $0.22 and $0.08 per share diluted for the quarters ended June 30, 2006 and 2005, respectively. The weighted average number of basic and diluted shares outstanding totaled 113,993,783 and 120,605,194, respectively, for the quarter ended June 30, 2006 and 110,764,403 and 118,460,257, respectively, for the quarter ended June 30, 2005.

Net income available to common shareholders was $626.0 million for the three months ended June 30, 2006, compared to $165.5 million for the quarter ended June 30, 2005. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2006 was $5.34 basic and $5.24 on a diluted basis. This compares to EPS for the second quarter of 2005 of $1.46 basic and $1.43 on a diluted basis. EPS includes $4.86 and $0.95, on a diluted basis, related to gains on sales of real estate and discontinued operations for the quarters ended June 30, 2006 and 2005, respectively.

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, 2006. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of June 30, 2006, the Company’s portfolio consisted of 124 properties comprising approximately 42.1 million square feet, including four properties under construction and one expansion project totaling 1.3 million square feet. The overall percentage of leased space for the 118 properties in service as of June 30, 2006 was 94.4%.

Significant events of the second quarter include:

On April 1, 2006, the Company placed-in-service 12290 Sunrise Valley, a 182,000 net rentable square foot Class A office property located in Reston, Virginia. The Company has leased 100% of the space.

On April 6, 2006, the Company’s Operating Partnership closed an offering of $400 million in aggregate principal amount of its 3.75% exchangeable senior notes due 2036. On May 2, 2006, the Company’s Operating Partnership closed an additional $50 million aggregate principal amount of the notes as a result of the underwriter’s exercise of its over-allotment option. The notes will be exchangeable into the Company’s common stock at an initial exchange rate, subject to adjustment, of 8.9461 shares per $1,000 principal amount of notes (or an initial exchange price of approximately $111.78 per share of common stock) under the circumstances described in the prospectus supplement filed with the Securities and Exchange Commission on April 3, 2006. Noteholders may require the Operating Partnership to purchase the notes at par initially on May 18, 2013 and, after that date, the notes will be redeemable at par at the option of the Operating Partnership under the circumstances described in the prospectus supplement.

On April 13, 2006, the Company acquired a parcel of land located in Waltham, Massachusetts for a purchase price of $16.0 million.

On May 31, 2006, the Company redeemed the outside members’ equity interests in the limited liability company that owns Citigroup Center for an aggregate redemption price of $100 million, with $50 million paid at closing and $25 million to be paid on each of the first and second anniversaries of the closing or, if earlier, in connection with a sale of Citigroup Center. In addition, the parties terminated the existing tax protection agreement.

On June 5, 2006, the Company repaid the mortgage loan collateralized by its 191 Spring Street property located in Lexington, Massachusetts totaling approximately $17.9 million using available cash. There was no prepayment penalty associated with the repayment. The mortgage loan bore interest at a fixed rate of 8.50% per annum and was scheduled to mature on September 1, 2006.

On June 6, 2006, the Company completed the sale of 280 Park Avenue, a Class A office property of approximately 1,179,000 net rentable square feet located in midtown Manhattan, for approximately $1.2 billion in cash. Net cash proceeds were approximately $850 million, after legal defeasance of indebtedness secured by the property (consisting of approximately $254.4 million of principal indebtedness and approximately $28.2 million of related defeasance costs) and the payment of transfer taxes, broker’s fees, revenue support payments and other customary closing costs. As part of the transaction, the buyer has engaged the Company as the property manager and leasing agent for 280 Park Avenue for a one-year term that renews automatically.

On June 30, 2006, the Company acquired 303 Almaden Boulevard, a Class A office property with approximately 157,000 net rentable square feet located in San Jose, California, at a purchase price of approximately $45.2 million. The acquisition was financed with available cash.

EPS and FFO per Share Guidance:

The Company’s guidance for the third quarter and full year 2006 for EPS (diluted), FFO per share (diluted) and FFO per share (diluted) after a supplemental adjustment is set forth and reconciled below.


	Third Quarter 2006					Full Year 2006
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	0.59	-	$	0.61	$	7.04	-	$	7.08
Add:
Projected Company Share of Real Estate Depreciation and Amortization		0.48	-		0.48		1.95	-		1.95
Less:
Projected Company Share of Gains on Sales of Real Estate		—	-		—		4.91	-		4.91
Projected FFO per Share (diluted)	$	1.07	-	$	1.09	$	4.08	-	$	4.12
Add:
Projected Company Share of Loss from Early Extinguishment of Debt Associated with the Sale of Real Estate		—	-		—		0.22	-		0.22
Projected FFO per Share (diluted) after a supplemental adjustment to exclude Loss from Early Extinguishment of Debt Associated with the Sale of Real Estate	$	1.07	-	$	1.09	$	4.30	-	$	4.34

Except as otherwise noted above, the foregoing estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and earnings impact of the events referenced in this release. The estimates do not include possible future gains or losses or the impact on operating results from possible future property acquisitions or dispositions. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

The foregoing estimates also include FFO after a supplemental adjustment to exclude the loss from early extinguishment of debt associated with the sale of real estate. This loss from early extinguishment of debt is incurred when the sale of real estate encumbered by debt requires the

Company to pay the extinguishment costs prior to the debt’s stated maturity and to write-off unamortized loan costs at the date of the extinguishment. Such costs are excluded from the gains on sales of real estate reported in accordance with GAAP. However, the Company views the losses from early extinguishments of debt associated with the sales of real estate as an incremental cost of the sale transactions because the Company extinguished the debt in connection with the consummation of the sale transactions and the Company had no intent to extinguish the debt absent such transactions. The Company believes that this supplemental adjustment more appropriately reflects the results of its operations exclusive of the impact of its sale transactions.

Boston Properties will host a conference call tomorrow, July 27, 2006 at 10:00 AM (Eastern Time), open to the general public, to discuss the second quarter 2006 results, the 2006 projections and related assumptions, and other related matters. The number to call for this interactive teleconference is (800) 240-5318. A replay of the conference call will be available through August 3, 2006 by dialing (800) 405-2236 and entering the passcode 11065141, or as a podcast on the Company’s website, www.bostonproperties.com, shortly after the call. An audio-webcast will also be archived and may be accessed in the Investor Relations section of the Company’s website under the heading Events & Webcasts.

Additionally, a copy of Boston Properties’ second quarter 2006 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at www.bostonproperties.com. These materials are also available by contacting Investor Relations at (617) 236-3322 or by written request to:

Investor Relations

Boston Properties, Inc.

111 Huntington Avenue, Suite 300

Boston, MA 02199-7610

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 properties and also includes two hotels. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets – Boston, Midtown Manhattan, Washington, D.C., San Francisco and Princeton, N.J.

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “guidance,” “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. 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 (including the impact of interest rates on our hedging program), the effects of local economic and market conditions, the effects of acquisitions and dispositions, including possible impairment charges, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, including its guidance for the third quarter and full fiscal year 2006.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended June 30,						Six months ended June 30,
	2006			2005			2006			2005
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	277,155		$	277,359		$	553,553		$	556,107
Recoveries from tenants		45,506			41,836			92,699			85,173
Parking and other		14,219			14,121			28,048			28,046

Total rental revenue		336,880			333,316			674,300			669,326
Hotel revenue		19,674			17,566			32,017			29,662
Development and management services		5,230			4,137			9,606			8,673
Interest and other		8,565			2,916			10,530			4,547

Total revenue		370,349			357,935			726,453			712,208

Expenses
Operating:
Rental		110,232			106,455			222,846			214,939
Hotel		12,770			12,495			24,247			23,304
General and administrative		15,796			14,252			30,438			29,065
Interest		78,449			78,233			153,266			157,587
Depreciation and amortization		67,912			67,026			134,759			134,822
Losses from early extinguishments of debt		31,457			12,896			31,924			12,896

Total expenses		316,616			291,357			597,480			572,613

Income before minority interest in property partnership, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		53,733			66,578			128,973			139,595
Minority interest in property partnership		777			1,472			2,013			3,124
Income from unconsolidated joint ventures		1,677			847			2,967			2,182

Income before minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		56,187			68,897			133,953			144,901
Minority interest in Operating Partnership		(11,758	)		(14,596	)		(27,193	)		(30,282	)

Income before gains on sales of real estate and discontinued operations		44,429			54,301			106,760			114,619
Gains on sales of real estate, net of minority interest		581,604			102,073			586,145			103,281

Income before discontinued operations		626,033			156,374			692,905			217,900
Discontinued operations:
Income from discontinued operations, net of minority interest		—			727			—			435
Gains on sales of real estate from discontinued operations, net of minority interest		—			8,389			—			8,389

Net income available to common shareholders	$	626,033		$	165,490		$	692,905		$	226,724

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	5.34		$	1.38		$	5.96		$	1.94
Discontinued operations, net of minority interest		—			0.08			—			0.08

Net income available to common shareholders	$	5.34		$	1.46		$	5.96		$	2.02

Weighted average number of common shares outstanding		113,994			110,764			113,255			110,477

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	5.24		$	1.35		$	5.83		$	1.90
Discontinued operations, net of minority interest		—			0.08			—			0.08

Net income available to common shareholders	$	5.24		$	1.43		$	5.83		$	1.98

Weighted average number of common and common equivalent shares outstanding		116,176			113,103			115,669			112,740

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	June 30, 2006			December 31, 2005
	(in thousands, except for share amounts)
	(unaudited)
ASSETS

Real estate	$	8,698,493		$	8,724,954
Construction in progress		78,926			177,576
Land held for future development		222,519			248,645
Less: accumulated depreciation		(1,314,472	)		(1,265,073	)

Total real estate		7,685,466			7,886,102

Cash and cash equivalents		370,396			261,496
Cash held in escrows		894,244			25,618
Tenant and other receivables, net of allowance for doubtful accounts of $2,556 and $2,519, respectively		35,814			52,668
Accrued rental income, net of allowance of $1,008 and $2,638, respectively		298,306			302,356
Deferred charges, net		250,154			242,660
Prepaid expenses and other assets		79,174			41,261
Investments in unconsolidated joint ventures		96,962			90,207

Total assets	$	9,710,516		$	8,902,368


LIABILITIES AND STOCKHOLDERS’ EQUITY

Liabilities:
Mortgage notes payable	$	2,912,135		$	3,297,192
Unsecured senior notes, net of discount		1,471,266			1,471,062
Unsecured exchangeable senior notes		450,000			—
Unsecured line of credit		—			58,000
Accounts payable and accrued expenses		90,390			109,823
Dividends and distributions payable		95,839			107,643
Accrued interest payable		50,175			47,911
Other liabilities		246,042			154,123

Total liabilities		5,315,847			5,245,754

Commitments and contingencies		—			—

Minority interests		824,924			739,268

Stockholders’ equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 114,298,348 and 112,621,162 shares issued and 114,219,448 and 112,542,262 shares outstanding in 2006 and 2005, respectively		1,142			1,125
Additional paid-in capital		2,831,119			2,745,719
Earnings in excess of dividends		720,623			182,105
Treasury common stock, at cost		(2,722	)		(2,722	)
Accumulated other comprehensive income (loss)		19,583			(8,881	)

Total stockholders’ equity		3,569,745			2,917,346

Total liabilities and stockholders’ equity	$	9,710,516		$	8,902,368

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended June 30,						Six months ended June 30,
	2006			2005			2006			2005
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	626,033		$	165,490		$	692,905		$	226,724
Add:
Minority interest in Operating Partnership		11,758			14,596			27,193			30,282
Less:
Minority interest in property partnership		777			1,472			2,013			3,124
Income from unconsolidated joint ventures		1,677			847			2,967			2,182
Gains on sales of real estate, net of minority interest		581,604			102,073			586,145			103,281
Income from discontinued operations, net of minority interest		—			727			—			435
Gains on sales of real estate from discontinued operations, net of minority interest		—			8,389			—			8,389

Income before minority interest in property partnership, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		53,733			66,578			128,973			139,595

Add:
Real estate depreciation and amortization (2)		69,773			69,247			138,447			138,787
Income from discontinued operations		—			871			—			520
Income from unconsolidated joint ventures		1,677			847			2,967			2,182
Less:
Minority interest in property partnership’s share of funds from operations		211			106			479			31
Preferred distributions		2,965			3,340			6,075			6,620

Funds from operations (FFO)		122,007			134,097			263,833			274,433

Add:
Losses from early extinguishments of debt associated with the sales of real estate		31,444			11,041			31,444			11,041

Funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		153,451			145,138			295,277			285,474
Less:
Minority interest in the Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		24,061			23,829			46,688			46,864

Funds from operations available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	129,390		$	121,309		$	248,589		$	238,610

Our percentage share of funds from operations - basic		84.32	%		83.58	%		84.19	%		83.58	%

Weighted average shares outstanding - basic		113,994			110,764			113,255			110,477

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.14		$	1.10		$	2.19		$	2.16

FFO per share basic	$	0.90		$	1.01		$	1.96		$	2.08

Weighted average shares outstanding - diluted		120,605			118,460			120,312			118,098

FFO per share diluted after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.10		$	1.06		$	2.13		$	2.09

FFO per share diluted	$	0.88		$	0.98		$	1.91		$	2.01

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $67,912, $67,026, $134,759 and $134,822, our share of unconsolidated joint venture real estate depreciation and amortization of $2,280, $2,394, $4,584 and $4,192 and depreciation and amortization from discontinued operations of $0, $193, $0 and $559, less corporate related depreciation and amortization of $419, $366, $896 and $786 for the three months and six months ended June 30, 2006 and 2005, respectively.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	June 30, 2006		December 31, 2005
Greater Boston	93.0	%	89.9	%
Greater Washington, D.C.	96.7	%	97.2	%
Midtown Manhattan	99.7	%	98.3	%
Princeton/East Brunswick, NJ	86.5	%	86.9	%
Greater San Francisco	88.6	%	90.8	%

Total Portfolio	94.4	%	93.8	%


	% Leased by Type
	June 30, 2006		December 31, 2005
Class A Office Portfolio	94.2	%	93.7	%
Office/Technical Portfolio	97.9	%	97.6	%

Total Portfolio	94.4	%	93.8	%