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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): January 30, 2007

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 January 30, 2007, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the fourth 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 December 31, 2006.

*99.2		Press release dated January 30, 2007.

*	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: January 30, 2007	By:	/s/ Douglas T. Linde
		Douglas T. Linde
		Chief Financial Officer

EXHIBIT INDEX


Exhibit No.		Description
*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended December 31, 2006.

*99.2		Press release dated January 30, 2007.

*	Filed herewith.

Boston Properties, Inc. Supplemental Operating and Financial Data

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2006

Boston Properties, Inc.

Fourth Quarter 2006

Table of Contents


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

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, acquisition and disposition 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 the exact amount and timing of any related special dividend and possible impairment charges) on our operating results, 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.

Fourth 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 creditworthy 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-three individuals average twenty-five years of real estate experience and fourteen 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 December 31, 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		131
Total Square Feet		43.4 million
Common Shares and Units Outstanding (as converted)		141.1 million
Dividend - Quarter/Annualized		$0.68/$2.72
Dividend Yield		2.43% (excluding 12/29/06 special dividend)
Total Market Capitalization		$20.4 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Fourth Quarter 2006

INVESTOR INFORMATION


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

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

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

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

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

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

	Q4 2006			Q3 2006			Q2 2006			Q1 2006			Q4 2005
High Closing Price	$	118.00		$	104.98		$	91.55		$	96.87		$	76.05
Low Closing Price	$	103.23		$	91.26		$	82.87		$	75.36		$	65.11
Average Closing Price	$	109.59		$	98.49		$	87.43		$	83.64		$	71.40
Closing Price, at the end of the quarter	$	111.88		$	103.34		$	90.40		$	93.25		$	74.13
Dividends per share - annualized (1)	$	2.72		$	2.72		$	2.72		$	2.72		$	2.72
Closing dividend yield - annualized (1)		2.43	%		2.63	%		3.01	%		2.92	%		3.67	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		141,099			140,435			140,291			139,213			139,158
Closing market value of outstanding shares and units (thousands)	$	15,786,156		$	14,512,553		$	12,682,306		$	12,981,612		$	10,315,783

(1)	Excludes special dividend of $5.40 per share paid on January 30, 2007 and $2.50 per share paid on October 31, 2005.



Timing
Quarterly results for 2007 will be announced according to the following schedule:

First Quarter		Late April 2007
Second Quarter		Late July 2007
Third Quarter		Late October 2007
Fourth Quarter		Late January 2008

Boston Properties, Inc.

Fourth Quarter 2006

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage
David Aubuchon	Anthony Paolone / Michael Mueller	Chris Brown	Rating Agencies:
A.G. Edwards & Sons	J.P. Morgan Securities	Banc of America Securities
314.955.5452	212.622.6682 / 212.622.6689	704.386.2524	Janice Svec
			Fitch Ratings
Ross Nussbaum / Charlotte Ng	Jordan Sadler	Sue Berliner / Elizabeth Carter	212.908.0304
Banc of America Securities	KeyBanc Capital Markets	Bear Stearns & Company
212.847.5668 / 212.933.2029	917.368.2280	212.272.3824 / 212.272.0217	Karen Nickerson
			Moody’s Investors Service
Ross Smotrich / Jeffrey Langbaum	David Harris / David Toti	Thomas Cook	212.553.4924
Bear Stearns & Company	Lehman Brothers	Citigroup Global Markets
212.272.8046 / 212.272.4201	212.526.1790 / 212.526.2002	212.723.1112	James Fielding
			Standard & Poor’s
Jonathan Litt / Michael Bilerman	Steve Sakwa / Ian Weissman	Matthew Lynch	212.438.2452
Citigroup Global Markets	Merrill Lynch & Company	Credit Suisse Securities
212.816.0231 / 212.816.1383	212.449.0335 / 212.449.6255	212.325.6456

Louis Taylor / Kristin Brown	Matthew Ostrower / David Cohen	Scott O’Shea
Deutsche Bank Securities	Morgan Stanley & Company	Deutsche Bank Securities
203.863.2381 / 203.863.2381	212.761.6284 / 212.761.8564	212.250.7190

Wilkes Graham / Matt Konrad	Sri Nagarajan / Mitchell Germain	Mark Streeter
Friedman, Billings, Ramsey	RBC Capital Markets	J.P. Morgan Securities
703.312.9737 / 703.312.9731	212.428.2360 / 212.428.2364	212.834.5086

Jay Habermann / Sloan Bohlen	John Guinee / Michael Hudgins	John Forrey / James Rank
Goldman Sachs & Company	Stifel, Nicolaus & Company	Merrill Lynch & Company
917.343.4260 / 212.902.2796	410.454.5520 / 410.454.4830	212.449.1812 / 212.449.6533

Michael Knott	James Feldman / Gretchen Amidon
Green Street Advisors	UBS Investment Research
949.640.8780	212.713.4932 / 212.713.4057

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.

Fourth 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
	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
Income Items:
Revenue	$	378,673		$	372,460		$	370,349		$	356,104		$	366,333
Straight line rent (SFAS 13)	$	15,942		$	12,841		$	11,723		$	13,155		$	13,596
Fair value lease revenue (SFAS 141) (1)	$	1,395		$	1,111		$	492		$	417		$	293
Lease termination fees (included in revenue) (2)	$	2,233		$	3,692		$	1,400		$	812		$	4,038
Capitalized interest	$	1,365		$	1,560		$	1,304		$	1,692		$	2,425
Capitalized wages	$	2,066		$	2,082		$	1,523		$	1,353		$	1,340
Operating Margins [(rental revenue - rental expense)/rental revenue] (3)		69.6	%		68.3	%		68.9	%		68.2	%		68.4	%
Net income available to common shareholders	$	71,655		$	107,962		$	625,731		$	67,737		$	154,063
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 (4) (5)	$	141,850		$	137,276		$	129,390		$	119,210		$	126,701
FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.18		$	1.16		$	1.10		$	1.03		$	1.09
Net income available to common shareholders per share - basic	$	0.61		$	0.93		$	5.33		$	0.60		$	1.35
Net income available to common shareholders per share -diluted	$	0.60		$	0.91		$	5.23		$	0.59		$	1.32
Dividends per common share (5)	$	6.08		$	0.68		$	0.68		$	0.68		$	0.68
Funds available for distribution to common shareholders and common unitholders (FAD) (6)	$	125,053		$	120,919		$	110,307		$	104,527		$	101,976

Ratios:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (7)		3.18			3.10			2.89			2.81			2.93
Interest Coverage Ratio (including capitalized interest) - cash basis (7)		3.12			3.03			2.84			2.75			2.84
FFO Payout Ratio (8)		57.63	%		58.62	%		61.82	%		66.02	%		62.39	%
FAD Payout Ratio (9)		75.50	%		77.26	%		83.77	%		87.41	%		89.33	%

	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
Capitalization:
Total Debt	$	4,600,937		$	4,733,323		$	4,833,401		$	4,696,713		$	4,826,254
Common Stock Price @ Quarter End	$	111.88		$	103.34		$	90.40		$	93.25		$	74.13
Equity Value @ Quarter End	$	15,786,156		$	14,512,553		$	12,682,306		$	12,981,612		$	10,315,783
Total Market Capitalization (10)	$	20,387,093		$	19,245,876		$	17,515,707		$	17,678,325		$	15,142,037
Debt/Total Market Capitalization (10)		22.57	%		24.59	%		27.59	%		26.57	%		31.87	%

(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)	Does not include the Company’s share of termination income earned from unconsolidated joint ventures totaling $626 and $933 for the three months ended December 31, 2006 and September 30, 2006, respectively.

(3)

Rental Expense consist of operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $7,176, $8,826, $7,907, $7,983 and $8,287 for the three months ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

(4)

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.

(5)	For the three months ended December 31, 2006, dividends per share includes the $5.40 per common share special dividend paid on January 30, 2007.

(6)	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.

(7)	For additional detail, see page 11.

(8)

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 December 31, 2006, excludes the $5.40 per share special dividend paid on January 30, 2007.

(9)	Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders divided by FAD. For the three months ended December 31, 2006, excludes the $5.40 per share special dividend paid on January 30, 2007.

(10)	For additional detail, see page 13.

Boston Properties, Inc.

Fourth Quarter 2006

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
ASSETS
Real estate	$	8,819,934		$	9,040,264		$	8,698,493		$	8,864,907		$	8,724,954
Construction in progress		115,629			57,392			78,926			107,051			177,576
Land held for future development		183,403			210,336			222,519			189,024			248,645
Real estate held for sale		433,492			—			—			—			—
Less accumulated depreciation		(1,392,055	)		(1,372,826	)		(1,314,472	)		(1,320,712	)		(1,265,073	)

Total real estate		8,160,403			7,935,166			7,685,466			7,840,270			7,886,102
Cash and cash equivalents		725,788			1,049,026			370,396			32,214			261,496
Cash held in escrows		25,784			21,436			894,244	(1)		23,715			25,618
Tenant and other receivables, net		57,052			42,128			35,814			41,458			52,668
Accrued rental income, net		327,337			310,560			298,306			316,048			302,356
Deferred charges, net		274,079			263,675			250,154			246,214			242,660
Prepaid expenses and other assets		40,868			72,033			79,174			91,646			41,261
Investments in unconsolidated joint ventures		83,711			83,485			96,962			98,836			90,207

Total assets	$	9,695,022		$	9,777,509		$	9,710,516		$	8,690,401		$	8,902,368

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	2,679,462		$	2,811,953		$	2,912,135		$	3,185,550		$	3,297,192
Unsecured senior notes, net of discount		1,471,475			1,471,370			1,471,266			1,471,163			1,471,062
Unsecured exchangeable senior notes		450,000			450,000			450,000			—			—
Unsecured line of credit		-	(2)		-	(2)		-	(2)		40,000	(2)		58,000
Accounts payable and accrued expenses		102,934			103,581			90,390			86,938			109,823
Dividends and distributions payable		857,892			95,607			95,839			95,344			107,643
Accrued interest payable		47,441			45,703			50,175			39,269			47,911
Other liabilities		239,084	(3)		236,350	(3)		246,042	(3)		98,296			154,123

Total liabilities		5,848,288			5,214,564			5,315,847			5,016,560			5,245,754

Commitments and contingencies		—			—			—			—			—

Minority interests		623,508			746,416			824,924			735,185			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,
117,503,542, 116,597,035, 114,219,448, 112,813,657 and 112,542,262 outstanding, respectively		1,175			1,166			1,142			1,128			1,125
Additional paid-in capital		3,119,941			3,068,952			2,831,119			2,759,580			2,745,719
Earnings in excess of dividends		108,155			749,940			720,623			173,129			182,105
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Accumulated other comprehensive income (loss)		(3,323	)		(807	)		19,583			7,541			(8,881	)

Total stockholders’ equity		3,223,226			3,816,529			3,569,745			2,938,656			2,917,346

Total liabilities and stockholders’ equity	$	9,695,022		$	9,777,509		$	9,710,516		$	8,690,401		$	8,902,368

(1)

Cash held in escrows includes approximately $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 included within Mortgage Notes Payable.

(3)

At December 31, 2006, September 30, 2006 and June 30, 2006, Other Liabilities included approximately $45.8 million, $46.4 million and $67.3 million and approximately $15.2 million, $18.8 million and $20.9 million consisting of the master lease and revenue support obligations, respectively, related to the sale of 280 Park Avenue and approximately $47.3 million, $46.6 million and $45.8 million related to the redemption of the outside members’ equity interests in the entity that owns Citigroup Center, respectively.

Boston Properties, Inc.

Fourth Quarter 2006

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	31-Dec-06			30-Sep-06			30-Jun-06			31-Mar-06			31-Dec-05
Revenue:
Rental
Base Rent	$	278,186		$	273,034		$	277,155		$	276,398		$	279,583
Recoveries from tenants		42,868			45,954			45,506			47,193			44,098
Parking and other		15,261			14,431			14,219			13,829			14,051

Total rental revenue		336,315			333,419			336,880			337,420			337,732
Hotel revenue		25,126			19,847			19,674			12,343			22,161
Development and management services		5,661			4,558			5,230			4,376			3,714
Interest and other		11,571			14,636			8,565			1,965			2,726

Total revenue		378,673			372,460			370,349			356,104			366,333

Expenses:
Operating		64,169			68,164			66,569			67,187			68,440
Real estate taxes		43,205			43,430			43,663			45,427			43,844
Hotel operating		17,392			13,899			12,770			11,477			16,125
General and administrative		16,198			12,739			15,796			14,642			13,136
Interest (1)		71,423			73,571			78,449			74,817			74,804
Depreciation and amortization		70,452			71,548			67,912			66,847			66,290
Losses from early extinguishments of debt (2)		11			208			31,457			467			—

Total expenses		282,850			283,559			316,616			280,864			282,639

Income before minority interests and income from unconsolidated joint ventures		95,823			88,901			53,733			75,240			83,694
Minority interest in property partnerships		—			—			777			1,236			1,366
Income from unconsolidated joint ventures (3)		1,340			20,200			1,677			1,290			1,530

Income before minority interest in Operating Partnership		97,163			109,101			56,187			77,766			86,590
Minority interest in Operating Partnership (4)		(26,691	)		(19,028	)		(11,758	)		(15,470	)		(16,928	)

Income before gains on sales of real estate and land held for development		70,472			90,073			44,429			62,296			69,662
Gains on sales of real estate, net of minority interest		1,183			17,889			581,302			5,441			48,542

Income before discontinued operations		71,655			107,962			625,731			67,737			118,204
Income from discontinued operations, net of minority interest		—			—			—			—			730
Gains on sales of real estate from discontinued operations, net of minority interest		—			—			—			—			39,364

Income before cumulative effect of a change in accounting principle		71,655			107,962			625,731			67,737			158,298
Cumulative effect of a change in accounting principle		—			—			—			—			(4,235	)

Net income available to common shareholders	$	71,655		$	107,962		$	625,731		$	67,737		$	154,063

INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	0.61		$	0.93		$	5.33		$	0.60		$	1.35

Net income available to common shareholders per share - diluted	$	0.60		$	0.91		$	5.23		$	0.59		$	1.32

(1)	Interest expense is reported net of capitalized interest of $1,365, $1,560, $1,304, $1,692 and $2,425 for the three months ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

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

(3)	Includes our share of the gain on sale of 265 Franklin Street totaling approximately $17.9 million for the three months ended September 30, 2006.

(4)

Equals minority interest share of 15.18%, 15.62%, 15.68%, 15.95% and 16.02% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

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

Boston Properties, Inc.

Fourth Quarter 2006

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	31-Dec-06			30-Sep-06			30-Jun-06		31-Mar-06		31-Dec-05
Net income available to common shareholders	$	71,655		$	107,962		$	625,731	$	67,737	$	154,063
Add:
Minority interest in Operating Partnership		26,691			19,028			11,758		15,470		16,928
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
Income from unconsolidated joint ventures		1,340			20,200			1,677		1,290		1,530
Gain on sales of real estate, net of minority interest		1,183			17,889			581,302		5,441		48,542
Income from discontinued operations, net of minority interest		—			—			—		—		730
Gain on sales of real estate from discontinued operations, net of minority interest		—			—			—		—		39,364

Income before minority interests and income from unconsolidated joint ventures		95,823			88,901			53,733		75,240		83,694
Add:
Real estate depreciation and amortization (1)		71,495			73,408			69,773		68,674		67,987
Income from discontinued operations		—			—			—		—		869
Income from unconsolidated joint ventures		1,340			2,283	(2)		1,677		1,290		1,530
Less:
Minority property partnerships’ share of funds from operations		—			—			211		268		114
Preferred dividends and distributions		1,431	(3)		1,912			2,965		3,110		3,098

Funds from operations (FFO)		167,227			162,680			122,007		141,826		150,868
Add:
Losses from early extinguishments of debt associated with the sales of real estate		—			—			31,444		—		—

FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		167,227			162,680			153,451		141,826		150,868
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		25,377			25,404			24,061		22,616		24,167

FFO available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (4)	$	141,850		$	137,276		$	129,390	$	119,210	$	126,701

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.21		$	1.19		$	1.14	$	1.06	$	1.13

FFO per share - basic	$	1.21		$	1.19		$	0.90	$	1.06	$	1.13

Weighted average shares outstanding - basic		116,895			115,432			113,994		112,509		112,340

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.18		$	1.16		$	1.10	$	1.03	$	1.09

FFO per share - basic	$	1.18		$	1.16		$	0.88	$	1.03	$	1.09

Weighted average shares outstanding - diluted		121,456			120,727			120,605		120,013		119,497

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $70,452, $71,548, $67,912, $66,847 and $66,290, our share of unconsolidated joint venture real estate depreciation and amortization of $2,250, $2,253, $2,280, $2,304 and $2,174 and depreciation and amortization from discontinued operations of $0, $0, $0, $0 and $63, less corporate related depreciation of $295, $393, $419, $477 and $540 and adjustment to asset retirement obligations of $912, $0, $0, $0 and $0 for the three months ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

(2)	Excludes approximately $17.9 million related to our share of the gain on sale and related loss from early extinguishment of debt associated with the sale of 265 Franklin Street.

(3)	Excludes approximately $12.2 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.

(4)	Based on weighted average shares for the quarter. Company’s share for the quarter ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005 was 84.82%, 84.38%, 84.32%, 84.05% and 83.98%, respectively.

Boston Properties, Inc.

Fourth Quarter 2006

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	December 31, 2006				September 30, 2006			June 30, 2006			March 31, 2006			December 31, 2005
	Income (Numerator)			Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)
	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	$	167,227		137,808	$	162,680	136,793	$	153,451	135,192	$	141,826	133,853	$	150,868	133,768
Effect of Dilutive Securities
Convertible Preferred Units		1,431	(1)	2,266		1,912	2,999		2,965	4,430		3,110	4,857		3,098	4,857
Stock Options and other		—		2,295		—	2,296		—	2,182		—	2,648		—	2,300

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	168,658		142,369	$	164,592	142,088	$	156,416	141,804	$	144,936	141,358	$	153,966	140,925

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		24,775		20,913		24,745	21,361		23,383	21,199		21,885	21,345		23,411	21,428

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)	$	143,883		121,456	$	139,847	120,727	$	133,033	120,605	$	123,051	120,013	$	130,555	119,497

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.21			$	1.19		$	1.14		$	1.06		$	1.13

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.18			$	1.16		$	1.10		$	1.03		$	1.09

(1)	Excludes approximately $12.2 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 December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005 was 85.31%, 84.97%, 85.05%, 84.90% and 84.79%, respectively.

Boston Properties, Inc.

Fourth Quarter 2006

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	December 31, 2006			September 30, 2006			June 30, 2006			March 31, 2006			December 31, 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)	$	167,227		$	162,680		$	153,451		$	141,826		$	150,868
2nd generation tenant improvements and leasing commissions		(16,243	)		(23,372	)		(29,566	)		(17,459	)		(26,663	)
Straight-line rent		(15,942	)		(12,841	)		(11,723	)		(13,155	)		(13,596	)
Recurring capital expenditures		(10,174	)		(6,063	)		(5,275	)		(4,206	)		(9,076	)
Fair value interest adjustment		398			(231	)		(881	)		(824	)		(821	)
Fair value lease revenue (SFAS 141)		(1,395	)		(1,111	)		(492	)		(417	)		(293	)
Hotel improvements, equipment upgrades and replacements		(1,213	)		(505	)		(1,988	)		(4,263	)		(1,860	)
Non real estate depreciation		295			393			419			477			540
Stock-based compensation		2,099			1,950			1,982			2,548			1,749
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		1			19			4,380			—			1,128

Funds available for distribution to common shareholder and common unitholders (FAD)	$	125,053		$	120,919		$	110,307		$	104,527		$	101,976

Interest Coverage Ratios

(in thousands, except for ratio amounts)


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

Income before minority interests and income from unconsolidated joint ventures	$	95,823		$	88,901		$	53,733		$	75,240		$	83,694
Interest expense		71,423			73,571			78,449			74,817			74,804
Losses from early extinguishments of debt associated with the sales of real estate		—			—			31,444			—			—
Depreciation and amortization expense		70,452			71,548			67,912			66,847			66,290
Depreciation from joint ventures		2,250			2,253			2,280			2,304			2,174
Income from unconsolidated joint ventures		1,340			2,283			1,677			1,290			1,530
Discontinued operations - depreciation expense		—			—			—			—			63
Discontinued operations		—			—			—			—			869
Straight-line rent		(15,942	)		(12,841	)		(11,723	)		(13,155	)		(13,596	)
Fair value lease revenue (SFAS 141)		(1,395	)		(1,111	)		(492	)		(417	)		(293	)

Subtotal		223,951			224,604			223,280			206,926			215,535

Divided by:
Interest expense (1)		70,481			72,542			77,253			73,644			73,540

Interest Coverage Ratio		3.18			3.10			2.89			2.81			2.93

Including Capitalized Interest

Income before minority interests and income from unconsolidated joint ventures	$	95,823		$	88,901		$	53,733		$	75,240		$	83,694
Interest expense		71,423			73,571			78,449			74,817			74,804
Losses from early extinguishments of debt associated with the sales of real estate		—			—			31,444			—			—
Depreciation and amortization expense		70,452			71,548			67,912			66,847			66,290
Depreciation from joint ventures		2,250			2,253			2,280			2,304			2,174
Income from unconsolidated joint ventures		1,340			2,283			1,677			1,290			1,530
Discontinued operations - depreciation expense		—			—			—			—			63
Discontinued operations		—			—			—			—			869
Straight-line rent		(15,942	)		(12,841	)		(11,723	)		(13,155	)		(13,596	)
Fair value lease revenue (SFAS 141)		(1,395	)		(1,111	)		(492	)		(417	)		(293	)

Subtotal		223,951			224,604			223,280			206,926			215,535

Divided by:
Interest expense (1) (2)		71,846			74,102			78,557			75,336			75,965

Interest Coverage Ratio		3.12			3.03			2.84			2.75			2.84

(1)	Excludes amortization of financing costs of $942, $1,029, $1,196, $1,173 and $1,264 for the quarters ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

(2)	Includes capitalized interest of $1,365, $1,560, $1,304, $1,692 and $2,425 for the quarters ended December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

Boston Properties, Inc.

Fourth 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 qualifying properties sold or held for sale during 2006 and 2005 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 December 31, 2006, September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.


	Three Months Ended
	31-Dec-06		30-Sep-06		30-Jun-06		31-Mar-06		31-Dec-05
Total Revenue (1)	$	—	$	—	$	—	$	—	$	2,031

Expenses:
Operating		—		—		—		—		28
Hotel operating		—		—		—		—		1,071
Depreciation and amortization		—		—		—		—		63

Total Expenses		—		—		—		—		1,162
Income before minority interest in Operating Partnership		—		—		—		—		869

Minority interest in Operating Partnership		—		—		—		—		139

Income from discontinued operations (net of minority interest)	$	—	$	—	$	—	$	—	$	730

Properties (2):										Residence Inn by Marriott®
										40-46 Harvard Street

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

(2)	Discontinued operations does not include the operations of 280 Park Avenue and Embarcadero Center West Tower 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.

Fourth Quarter 2006

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal December 31, 2006
	Aggregate Principal December 31, 2006
Mortgage Notes Payable	$	2,679,462

Unsecured Line of Credit		—

Unsecured Senior Notes, net of discount		1,471,475

Unsecured Exchangeable Senior Notes		450,000

Total Debt	$	4,600,937

Boston Properties Limited Partnership Unsecured Senior Notes


Settlement Date		5/22/03			3/18/03			1/17/03			12/13/02			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	$	1,280		$	231		$	296		$	1,718		$	3,525

Unsecured Senior Notes, net of discount	$	248,720		$	299,769		$	174,704		$	748,282		$	1,471,475

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. In connection with the special dividend declared on December 18, 2006, the exchange rate was adjusted to an exchange price of approximately $106.50 per share.

Equity

(in thousands)


	Shares/ Units Outstanding as of 12/31/2006	Common Stock Equivalents		Equivalent (2)


Common Stock	117,504	117,504	(3)	$	13,146,348
Common Operating Partnership Units	21,339	21,339	(4)		2,387,407
Series Two Preferred Operating Partnership Units	1,719	2,256			252,401

Total Equity		141,099		$	15,786,156

Total Debt				$	4,600,937

Total Market Capitalization				$	20,387,093

(2)	Value based on December 31, 2006 closing price of $111.88 per share of common stock.

(3)	Includes 164 shares of restricted stock.

(4)	Includes 521 long-term incentive plan units.

Boston Properties, Inc.

Fourth Quarter 2006

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2007			2008			2009			2010			2011			Thereafter			Total
Floating Rate Debt	$	—		$	475,000		$	11,490		$	225,000		$	—		$	—		$	711,490
Fixed Rate Debt		45,489			797,794			184,450			130,625			542,781			2,188,308			3,889,447

Total Debt	$	45,489		$	1,272,794		$	195,940		$	355,625		$	542,781		$	2,188,308		$	4,600,937

Weighted Average Floating Rate Debt		—			5.85	%		6.63	%		5.65	%		—			—			5.80	%
Weighted Average Fixed Rate Debt		7.15	%		6.83	%		7.10	%		7.96	%		7.23	%		5.64	%		6.27	%

Total Weighted Average Rate		7.15	%		6.47	%		7.07	%		6.50	%		7.23	%		5.64	%		6.20	%

Unsecured Debt

Unsecured Line of Credit - Matures August 3, 2010

(in thousands)


Facility	Outstanding @ 12/31/2006			Letters of Credit		Remaining Capacity @ 12/31/2006
$ 605,000	$	—	(1)	$	18,100	$	361,900	(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	41.76	%	5.44	%	6.8years
Secured Debt	58.24	%	6.74	%	3.3years

Total Debt	100.00	%	6.20	%	4.7years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	15.46	%	5.80	%	2.2years
Fixed Rate Debt	84.54	%	6.27	%	5.2years

Total Debt	100.00	%	6.20	%	4.7years

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. On December 19, 2006, the Company entered into an interest rate lock agreement with a lender for a fixed interest rate of 5.57% per annum on a ten-year mortgage financing totaling $750.0 million to be collateralized by the Company’s 599 Lexington Avenue property in New York City. In conjunction with the interest rate lock agreement, the Company terminated its forward-starting interest rate swap contracts and received approximately $10.9 million, which amount will reduce the Company’s interest expense over the ten year term of the financing, resulting in an effective interest rate of 5.38% per annum.

Boston Properties, Inc.

Fourth Quarter 2006

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2007			2008			2009			2010			2011			Thereafter			Total
Citigroup Center	$	8,223		$	8,816		$	9,453		$	10,136		$	456,898		$	—		$	493,526
Times Square Tower		—			475,000			—			—			—			—			475,000
Embarcadero Center One and Two		5,877			278,912			—			—			—			—			284,789
Prudential Center		5,619			259,706			—			—			—			—			265,325
599 Lexington Avenue		—						—			225,000 (1)			—			—			225,000
Embarcadero Center Four		4,346			129,712			—			—			—			—			134,058
Democracy Center		2,421			2,597			91,132			—			—			—			96,150
One Freedom Square		2,121			2,245			2,375			2,513			2,660			66,093			78,007
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
202, 206 & 214 Carnegie Center		845			916			994			56,306			—			—			59,061
140 Kendrick Street		1,466			1,549			1,637			1,730			1,828			50,291			58,501
New Dominion Technology Park, Building One		1,381			1,481			1,594			1,715			1,846			47,403			55,420
1330 Connecticut Avenue		2,346			2,452			2,577			2,701			45,021			—			55,097
Reservoir Place		1,658			1,666			48,592			—			—			—			51,916
504, 506 & 508 Carnegie Center		1,315			40,914			—			—			—			—			42,229
10 & 20 Burlington Mall Rd & 91 Hartwell		863			925			994			1,069			32,524			—			36,375
10 Cambridge Center		776			844			916			29,677			—			—			32,213
Sumner Square		645			694			747			804			865			23,826			27,581
Eight Cambridge Center		701			757			819			22,911			—			—			25,188
1301 New York Avenue		1,652			1,781			21,628			—			—			—			25,061
510 Carnegie Center		736			23,519			—			—			—			—			24,255
Reston Corporate Center		744			20,524			—			—						—			21,268
University Place		864			925			992			1,063			1,139			16,220			21,203
Bedford Business Park		890			16,859			—			—						—			17,749
South of Market		—			—			11,490			—			—			—			11,490

		45,489			1,272,794			195,940			355,625			542,781			266,833			2,679,462

Unsecured Senior Notes		—			—			—			—			—			1,921,475			1,921,475
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	45,489		$	1,272,794		$	195,940		$	355,625		$	542,781		$	2,188,308		$	4,600,937

% of Total Debt		0.99	%		27.66	%		4.26	%		7.73	%		11.80	%		47.56	%		100.00	%
Balloon Payments	$	—		$	1,234,782		$	170,188		$	332,339		$	528,697		$	2,141,505		$	4,407,511
Scheduled Amortization	$	45,489		$	38,012		$	25,752		$	23,286		$	14,084		$	46,803		$	193,426

(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 August 3, 2010. On December 19, 2006, the Company entered into an interest rate lock agreement with a lender for a fixed interest rate of 5.57% per annum on a ten-year mortgage financing totaling approximately $750.0 million to be collateralized by the Company’s 599 Lexington Avenue property in New York City expected to close in the first quarter.

Boston Properties, Inc.

Fourth 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 December 31, 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.


	December 31, 2006
Total Assets:
Capitalized Property Value	$	11,760,692
Cash and Cash Equivalents		725,788
Undeveloped Land, at Cost		183,404
Development in Process, at Cost (including Joint Venture %)		183,666

Total Assets	$	12,853,550

Unencumbered Assets	$	6,903,184

Secured Debt (Fixed and Variable) (1)	$	2,659,366
Joint Venture Debt		229,313
Contingent Liabilities & Letters of Credit		25,807
Unsecured Debt (2)		1,925,000

Total Outstanding Debt	$	4,839,486

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)	$	95,823
Add: Interest Expense (per Consolidated Income Statement)		71,423
Add: Depreciation and Amortization (per Consolidated Income Statement)		70,452
Add: Loss from early extinguishment of debt		11

EBITDA		237,709
Add: Company share of unconsolidated joint venture EBITDA		6,379

Consolidated EBITDA	$	244,088

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)	$	71,423
Add: Company share of unconsolidated joint venture interest expense		3,247
Less: Amortization of financing costs		(942	)
Less: Interest expense funded by construction loan draws		—

Adjusted Interest Expense	$	73,728


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		37.7	%
Secured Debt/Total Assets	Less than 50%		22.5	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		3.31
Unencumbered Assets/ Unsecured Debt	Greater than 150%		358.6	%

Unencumbered Consolidated EBITDA		$	124,861

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			4.77

% of unencumbered Consolidated EBITDA to Consolidated EBITDA			51.2	%

# of unencumbered properties			80

(1)	Excludes Fair Value Adjustment of $20,096.

(2)	Excludes Debt Discount of $3,525.

Boston Properties, Inc.

Fourth Quarter 2006

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of December 31, 2006


	Market Square North			Metropolitan Square			265 Franklin Street (1)			901 New York Avenue			Wisconsin Place (2)(3)			505 9th Street (2)			Value- Added Fund (4)			New York Land Venture (2)			Combined
Total Equity (5)	$	6,638		$	35,120		$	209		$	696		$	6,045		$	22,177		$	10,069		$	2,757		$	83,711

Mortgage/Construction loans payable (5)	$	45,056		$	66,628		$	—		$	42,499		$	14,953		$	21,752		$	26,625		$	11,800		$	229,313

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 December 31, 2006


	Market Square North		Metropolitan Square		265 Franklin Street (1)			901 New York Avenue			Wisconsin Place (2)(3)		505 9th Street (2)		Value- Added Fund (4)			New York Land Venture (2)		Combined


REVENUE
Total revenue	$	5,448	$	8,204	$	78		$	7,807		$	—	$	—	$	3,864		$	—	$	25,401	(6)

EXPENSES
Operating		1,976		2,950		110			2,449			—		—		1,324			—		8,809

SUBTOTAL		3,472		5,254		(32	)		5,358			—		—		2,540			—		16,592

Interest		1,748		2,691		—			2,231			—		—		1,770			—		8,440
Depreciation and amortization		1,475		1,572		—			1,503			—		—		1,420			—		5,970

SUBTOTAL		3,223		4,263		—			3,734			—		—		3,190			—		14,410

Gains on sale of real estate		—		—		(11	)		—			—		—		—			—		(11	)

NET INCOME/(LOSS)	$	249	$	991	$	(43	)	$	1,624		$	—	$	—	$	(650	)	$	—	$	2,171

BXP’s share of net income/(loss)	$	125	$	505	$	(14	)	$	887	(7)	$	—	$	—	$	(163	)	$	—	$	1,340
BXP’s share of depreciation & amortization		737		802		—			356			—		—		355			—		2,250

BXP’s share of Funds from Operations (FFO)	$	862	$	1,307	$	(14	)	$	1,243		$	—	$	—	$	192		$	—	$	3,590

(1)	On September 15, 2006, the joint venture sold this property.

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

(3)

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.

(4)	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.

(5)	Represents the Company’s share.

(6)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately ($230) and ($894), respectively, for the three months ended December 31, 2006.

(7)	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.

Fourth Quarter 2006

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments by Property

(in thousands)


Property	2007			2008			2009			2010			2011			Thereafter			Total
Metropolitan Square (51%)	$	978		$	1,061		$	1,152		$	63,437		$	—		$	—		$	66,628
Market Square North (50%)		1,081			1,167			1,260			41,548			—			—			45,056
901 New York Avenue (25%)		—			554			635			669			704			39,937			42,499
505 9th Street (50%)		—			—			—			—			—			21,752			21,752	(1)
Wisconsin Place (23.89%)		1,429			1,395			12,129									—			14,953	(2)
New York Land Venture (50%)		—			11,800			—			—			—			—			11,800

	$	3,488		$	15,977		$	15,176		$	105,654		$	704		$	61,689		$	202,688

Weighted Average Rate (2)		7.95	%		7.56	%		6.98	%		8.00	%		5.19	%		5.49	%		7.11	%
% of Total Debt		1.72	%		7.88	%		7.49	%		52.13	%		0.35	%		30.44	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	17.10	%	7.08	%	1.5years
Fixed Rate Debt	82.90	%	7.11	%	5.3years

Total Debt	100.00	%	7.11	%	4.7years

(*)	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)

Amount represents outstanding construction financing under 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.

(2)

Approximately $12.1 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.

Boston Properties, Inc.

Fourth 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. The investment period expired on October 25, 2006. 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	%	$	33.67	$	14,250	(2)
300 Billerica Road, Chelmsford, MA	1	110,882	100.0	%		7.64		1,875	(3)
Circle Star, San Carlos, CA	2	205,994	88.0	%		46.51		10,500	(4)

Total	7	639,204	83.5	%	$	32.60	$	26,625

Results of Operations

(unaudited and in thousands)

for the three months ended December 31, 2006


	Value-Added Fund
REVENUE

Total revenue (5)	$	3,864

EXPENSES

Operating		1,324

SUBTOTAL		2,540

Interest		1,770
Depreciation and amortization		1,420

NET LOSS	$	(650	)

Company’s share of net loss	$	(163	)
Company’s share of depreciation & amortization		355

Company’s share of Funds from Operations (FFO)	$	192

The Company’s Equity in the Value-Added Fund	$	10,069

(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 December 31, 2006, the interest rate was 6.24% per annum.

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

(4)	The mortgage bears interest at a fixed rate of 6.57% and matures on September 1, 2013.

(5)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $108 and ($894), respectively for the three months ended December 31, 2006.

Boston Properties, Inc.

Fourth 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 December 31, 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 (3)		Square Feet % of Total		% of NOI Hotel (4)		% of NOI Total (4)


Greater Boston	8,131,878		21.0	%	776,234		2.0	%	8,908,112		28.5	%	3.3	%	26.3	%
Greater Washington	7,781,091	(5)	18.1	%	857,007		1.9	%	8,638,098	(5)	27.6	%	—		20.0	%
Greater San Francisco	4,762,150		12.8	%	—		—		4,762,150		15.2	%	—		12.8	%
Midtown Manhattan	6,622,316		37.1	%	—		—		6,622,316		21.2	%	—		37.1	%
Princeton/East Brunswick, NJ	2,319,712		3.8	%	—		—		2,319,712		7.4	%	—		3.8	%

	29,617,147		92.8	%	1,633,241		3.9	%	31,250,388		100.0	%	3.3	%	100.0	%

% of Total	94.8	%			5.2	%			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	19.6	%	6.7	%	26.3	%
Greater Washington	6.3	%	13.7	%	20.0	%
Greater San Francisco	10.4	%	2.4	%	12.8	%
Midtown Manhattan	37.1	%	—		37.1	%
Princeton/East Brunswick, NJ	—		3.8	%	3.8	%

Total	73.4	%	26.6	%	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	32,553	10,020,288

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

(2)

Net Operating Income is a non-GAAP financial measure. For a quantitative reconciliation of consolidated NOI to net income availabe 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 1,400,000 square feet of retail space.

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

(5)	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.

Fourth Quarter 2006

In-Service Property Listing

as of December 31, 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	1,182,537	91.4	%	$	38.18	Y	CBD
	111 Huntington Avenue -The Prudential Center	CBD Boston MA	1	857,386	100.0	%		51.21	N	CBD
	101 Huntington Avenue -The Prudential Center	CBD Boston MA	1	505,939	100.0	%		37.16	Y	CBD
	The Shops at the Prudential Center	CBD Boston MA	1	500,135	95.9	%		65.53	Y(1)	CBD
	Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		50.50	N	CBD
	One Cambridge Center	East Cambridge MA	1	215,385	87.3	%		38.49	N	CBD
	Three Cambridge Center	East Cambridge MA	1	108,152	100.0	%		28.80	N	CBD
(2)	Four Cambridge Center	East Cambridge MA	1	198,295	66.0	%		37.30	N	CBD
(2)	Five Cambridge Center	East Cambridge MA	1	237,752	63.2	%		27.89	N	CBD
	Eight Cambridge Center	East Cambridge MA	1	177,226	100.0	%		36.46	Y	CBD
	Ten Cambridge Center	East Cambridge MA	1	152,664	100.0	%		40.21	Y	CBD
	Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		48.70	N	CBD
	University Place	Mid-Cambridge MA	1	195,282	100.0	%		38.57	Y	CBD
	Reservoir Place	Route 128 Mass Turnpike MA	1	526,998	87.3	%		31.40	Y	S
	Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	97.5	%		30.49	N	S
	140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.17	Y	S
(2)	Prospect Place	Route 128 Mass Turnpike MA	1	298,893	68.7	%		27.94	N	S
	Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	79.1	%		26.17	N	S
	195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		53.00	N	S
	200 West Street	Route 128 Mass Turnpike MA	1	248,311	92.1	%		33.23	N	S
	Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	98.1	%		33.76	N	S
	10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	91.3	%		22.20	Y	S
	Bedford Business Park	Route 128 Northwest MA	1	89,961	16.3	%		20.67	Y	S
	32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		29.84	N	S
	91 Hartwell Avenue	Route 128 Northwest MA	1	121,425	88.3	%		24.45	Y	S
	92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		53.22	N	S
	100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		24.47	N	S
	33 Hayden Avenue	Route 128 Northwest MA	1	80,128	100.0	%		30.70	N	S
	Lexington Office Park	Route 128 Northwest MA	2	166,689	96.4	%		23.91	N	S
	191 Spring Street	Route 128 Northwest MA	1	158,900	100.0	%		29.57	N	S
	181 Spring Street	Route 128 Northwest MA	1	55,793	89.8	%		38.73	N	S
	201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		36.63	N	S
	40 Shattuck Road	Route 128 Northwest MA	1	120,000	95.6	%		26.31	N	S
	Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		21.27	N	S
	Newport Office Park	Route 128 South MA	1	171,957	97.4	%		21.26	N	S

			42	8,131,878	92.1	%	$	37.25

Office/Technical
(2)	Seven Cambridge Center	East Cambridge MA	1	231,028	100.0	%		83.24	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	33.9	%		19.06	Y	S
	17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		15.00	N	S
	164 Lexington Road	Route 128 Northwest MA	1	64,140	100.0	%		13.00	N	S

			6	776,234	67.3	%	$	46.86

		Total Greater Boston:	48	8,908,112	89.9	%	$	37.87

Boston Properties, Inc.

Fourth Quarter 2006

In-Service Property Listing (continued)

as of December 31, 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	614,312	91.8	%	$	41.69	N	CBD
	500 E Street, S. W.	Southwest Washington DC	1	246,057	100.0	%		34.95	N	CBD
	Metropolitan Square (51% ownership)	East End Washington DC	1	586,478	99.9	%		44.73	Y	CBD
	1301 New York Avenue	East End Washington DC	1	188,358	100.0	%		30.92	Y	CBD
	Market Square North (50% ownership)	East End Washington DC	1	401,279	100.0	%		51.19	Y	CBD
	901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	99.4	%		51.87	Y	CBD
	1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		43.94	N	CBD
	1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		49.57	Y	CBD
	Sumner Square	CBD Washington DC	1	208,665	100.0	%		40.81	Y	CBD
	Democracy Center	Montgomery County MD	3	684,968	83.7	%		32.36	Y	S
	Montvale Center	Montgomery County MD	1	122,737	90.8	%		24.73	N	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	%		25.76	N	S
	One Freedom Square	Fairfax County VA	1	414,207	100.0	%		36.57	Y	S
	Two Freedom Square	Fairfax County VA	1	421,676	100.0	%		38.34	N	S
	One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		26.11	N	S
	Two Reston Overlook	Fairfax County VA	1	134,615	100.0	%		27.89	N	S
	One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		39.48	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	%		41.19	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	7,781,091	97.7	%	$	38.29

Office/Technical
	Broad Run Business Park	Loudoun County	1	127,070	100.0	%		19.85	N	S
	7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		18.99	N	S
	7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		21.46	N	S
	7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		19.45	N	S
	7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		15.53	N	S
	8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		17.20	N	S
	7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.98	N	S
	7501 Boston Boulevard	Fairfax County VA	1	75,756	100.0	%		23.93	N	S
	7601 Boston Boulevard	Fairfax County VA	1	103,750	100.0	%		14.33	N	S
	7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		19.72	N	S
	8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		16.44	N	S
	7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		24.66	N	S

			12	857,007	100.0	%	$	18.30


		Total Greater Washington:	42	8,638,098	98.0	%	$	36.27

Boston Properties, Inc.

Fourth Quarter 2006

In-Service Property Listing (continued)

as of December 31, 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	1,018,291	100.0	%	$	67.62	Y(3)	CBD
	Citigroup Center	Park Avenue NY	1	1,565,895	99.9	%		69.28	Y	CBD
	399 Park Avenue	Park Avenue NY	1	1,697,564	99.8	%		76.09	N	CBD
	Times Square Tower	Times Square NY	1	1,238,787	100.0	%		62.69	Y	CBD
	5 Times Square	Times Square NY	1	1,101,779	100.0	%		55.11	N	CBD

		Total Midtown Manhattan:	5	6,622,316	99.9	%	$	67.17

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	89.5	%		31.21	N	S
	105 Carnegie Center	Princeton NJ	1	70,029	81.1	%		30.95	N	S
	201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		28.38	N	S
	202 Carnegie Center	Princeton NJ	1	128,705	74.5	%		29.37	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	97.3	%		34.90	N	S
	214 Carnegie Center	Princeton NJ	1	150,774	76.8	%		30.28	Y	S
	302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		35.25	N	S
	502 Carnegie Center	Princeton NJ	1	116,855	100.0	%		33.65	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	%		35.42	Y	S
	508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		30.00	Y	S
	510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		25.00	Y	S
	One Tower Center	East Brunswick NJ	1	412,224	64.9	%		36.85	N	S

		Total Princeton/East Brunswick, NJ:	16	2,319,712	87.9	%	$	31.50

Greater San Francisco
Office
	Embarcadero Center One	CBD San Francisco CA	1	822,758	76.1	%	$	45.48	Y	CBD
	Embarcadero Center Two	CBD San Francisco CA	1	770,231	88.2	%		46.52	Y	CBD
	Embarcadero Center Three	CBD San Francisco CA	1	770,972	93.4	%		40.73	N	CBD
	Embarcadero Center Four	CBD San Francisco CA	1	934,637	90.6	%		58.48	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	505,813	91.9	%		20.50	N	S
(2)	303 Almaden	San Jose, CA	1	157,537	100.0	%	$	26.90	N	CBD
(2)	3200 Zanker Road	San Jose, CA	4	543,900	100.0	%	$	12.86	N	S

		Total Greater San Francisco:	12	4,762,150	90.2	%	$	39.03

		Total In-Service Properties:	123	31,250,388	94.2	%	$	43.73

(1)	93,181 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 August 3, 2010.

Boston Properties, Inc.

Fourth Quarter 2006

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED


Tenant		Sq. Ft.		% of Portfolio
1	US Government	1,624,697	(1)	5.20	%
2	Lockheed Martin	1,294,292		4.14	%
3	Ernst & Young	1,164,969		3.73	%
4	Citibank NA	1,142,009		3.65	%
5	Genentech	553,799		1.77	%
6	Shearman & Sterling	540,658		1.73	%
7	Procter & Gamble	484,051		1.55	%
8	Kirkland & Ellis	473,161	(2)	1.51	%
9	Lehman Brothers	436,723		1.40	%
10	Parametric Technology	380,987		1.22	%
11	Washington Group International	365,245		1.17	%
12	Finnegan Henderson Farabow	349,146	(3)	1.12	%
13	Ann Taylor	338,942		1.08	%
14	Orbital Sciences	337,228		1.08	%
15	Northrop Grumman	327,677		1.05	%
16	MIT	313,048		1.00	%
17	Accenture	299,022		0.96	%
18	Bingham McCutchen	291,415		0.93	%
19	Akin Gump Strauss Hauer & Feld	290,132		0.93	%
20	Biogen Idec	282,464		0.90	%

	Total % of Portfolio Square Feet			36.13	%
	Total % of Portfolio Revenue			37.10	%

Major Future Signed Deals


Tenant	Property		Sq. Ft.
DLA Piper Rudnick Gray Cary US LLP	505 9th Street	(4)	231,748

(1)	Includes 96,660 square feet of space in properties in which Boston Properties has a 51% and 50% interest.

(2)	Includes 218,134 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. Boston Properties has a 50% interest in this property.

TENANT DIVERSIFICATION (GROSS RENT) *

LOGO

*	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.

Boston Properties, Inc.

Fourth 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
2007	1,500,020	$	56,498,556	$	37.67	$	56,671,830	$	37.78	5.30	%
2008	1,544,891		63,305,424		40.98		65,302,357		42.27	5.46	%
2009	2,662,710		101,072,260		37.96		105,376,930		39.58	9.40	%
2010	2,441,080		90,332,011		37.00		95,107,449		38.96	8.62	%
2011	2,841,479		116,335,495		40.94		124,593,615		43.85	10.04	%
2012	2,143,307		87,561,952		40.85		96,203,077		44.89	7.57	%
2013	604,570		24,884,411		41.16		30,454,497		50.37	2.14	%
2014	1,901,610		65,450,691		34.42		73,122,538		38.45	6.72	%
2015	1,575,146		54,863,601		34.83		64,099,440		40.69	5.56	%
2016	2,362,691		127,956,289		54.16		140,792,655		59.59	8.35	%
Thereafter	6,719,690		361,484,941		53.79		440,276,916		65.52	23.73	%

Occupancy By Location*


	CBD				Suburban				Total
Location	31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05
Midtown Manhattan	99.9	%	98.3	%	n/a		n/a		99.9	%	98.3	%
Greater Boston	93.2	%	88.3	%	90.7	%	90.3	%	92.1	%	89.2	%
Greater Washington	98.4	%	99.1	%	97.2	%	96.0	%	97.7	%	97.3	%
Greater San Francisco	87.7	%	91.1	%	96.9	%	89.8	%	90.2	%	90.8	%
Princeton/East Brunswick, NJ	n/a		n/a		87.9	%	86.9	%	87.9	%	86.9	%

Total Portfolio	95.6	%	94.8	%	93.3	%	91.7	%	94.7	%	93.7	%

*	Includes approximately 1,400,000 square feet of retail space.

Boston Properties, Inc.

Fourth 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



2007	269,850	$	5,044,371	$	18.69	$	5,044,371	$	18.69	16.52	%
2008	70,440		1,406,245		19.96		1,444,607		20.51	4.31	%
2009	78,908		1,610,153		20.41		1,668,678		21.15	4.83	%
2010	145,918		2,327,983		15.95		2,393,969		16.41	8.93	%
2011	57,321		890,329		15.53		890,329		15.53	3.51	%
2012	119,412		2,484,745		20.81		2,636,309		22.08	7.31	%
2013	80,000		1,490,745		18.63		1,570,745		19.63	4.90	%
2014	285,972		5,226,636		18.28		5,900,388		20.63	17.51	%
2015	—		—		—		—		—	0.00	%
2016	257,755		19,538,187		75.80		19,971,129		77.48	15.78	%
Thereafter	—		—		—		—		—	0.00	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05
Midtown Manhattan	n/a		n/a		n/a		n/a		n/a		n/a
Greater Boston	100.0	%	100.0	%	46.9	%	100.0	%	67.3	%	100.0	%
Greater Washington	n/a		n/a		100.0	%	96.1	%	100.0	%	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	%	81.0	%	97.5	%	84.5	%	97.6	%

Boston Properties, Inc.

Fourth 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
2007	38,246	$	3,602,035	$	94.18	(1)	$	3,240,931	$	84.74	(1)	3.01	%
2008	75,169	$	4,599,127		61.18	(2)	$	4,611,908		61.35	(2)	5.92	%
2009	62,915	$	3,202,635		50.90		$	3,251,641		51.68		4.95	%
2010	99,548	$	3,454,083		34.70		$	3,556,815		35.73		7.84	%
2011	67,336	$	4,126,390		61.28		$	4,355,956		64.69		5.30	%
2012	111,889	$	5,755,447		51.44		$	6,185,480		55.28		8.81	%
2013	69,538	$	5,992,869		86.18		$	6,479,445		93.18		5.48	%
2014	49,237	$	4,403,735		89.44		$	4,941,518		100.36		3.88	%
2015	92,275	$	8,176,366		88.61		$	8,830,082		95.69		7.27	%
2016	87,179	$	5,801,279		66.54		$	6,659,107		76.38		6.86	%
Thereafter	516,744	$	29,653,549		57.39		$	37,361,310		72.30		40.69	%

(1)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $49.22 and $46.86 in 2007.

(2)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $56.52 and $56.79 in 2008.

Boston Properties, Inc.

Fourth 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
2007	1,808,116	$	65,144,962	$	36.03	$	64,957,132	$	35.93	5.8	%
2008	1,690,500		69,310,796		41.00		71,358,872		42.21	5.4	%
2009	2,804,533		105,885,048		37.75		110,297,250		39.33	9.0	%
2010	2,686,546		96,114,077		35.78		101,058,233		37.62	8.6	%
2011	2,966,136		121,352,214		40.91		129,839,899		43.77	9.5	%
2012	2,374,608		95,802,144		40.34		105,024,866		44.23	7.6	%
2013	754,108		32,368,025		42.92		38,504,687		51.06	2.4	%
2014	2,236,819		75,081,062		33.57		83,964,444		37.54	7.2	%
2015	1,667,421		63,039,966		37.81		72,929,522		43.74	5.3	%
2016	2,707,625		153,295,755		56.62		167,422,891		61.83	8.7	%
Thereafter	7,236,434		391,138,490		54.05		477,638,226		66.00	23.2	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05
Midtown Manhattan	99.9	%	98.3	%	n/a		n/a		99.9	%	98.3	%
Greater Boston	93.6	%	88.5	%	85.7	%	91.4	%	89.9	%	89.9	%
Greater Washington	98.4	%	99.1	%	97.7	%	96.0	%	98.0	%	97.2	%
Greater San Francisco	87.7	%	91.1	%	96.9	%	89.8	%	90.2	%	90.8	%
Princeton/East Brunswick, NJ	n/a		n/a		87.9	%	86.9	%	87.9	%	86.9	%

Total Portfolio	95.7	%	94.8	%	92.0	%	92.4	%	94.2	%	93.8	%

Boston Properties, Inc.

Fourth 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
2007	391,549	$	13,709,480	$	35.01	$	13,856,772	$	35.39		144,140	$	2,270,887	$	15.75	$	2,270,887	$	15.75
2008	731,769		23,316,327		31.86		23,791,863		32.51		—		—		—		—		—
2009	1,399,874		50,814,410		36.30		53,939,358		38.53		—		—		—		—		—
2010	438,173		14,059,571		32.09		14,740,910		33.64		—		—		—		—		—
2011	1,346,395		49,265,828		36.59		54,050,238		40.14		—		—		—		—		—
2012	856,638		31,420,611		36.68		33,010,835		38.54		67,362		1,494,754		22.19		1,646,319		24.44
2013	204,823		9,246,327		45.14		10,293,835		50.26		80,000		1,490,745		18.63		1,570,745		19.63
2014	542,400		20,621,515		38.02		21,902,957		40.38		—		—		—		—		—
2015	246,454		9,208,239		37.36		10,105,276		41.00		—		—		—		—		—
2016	215,172		6,494,733		30.18		7,042,261		32.73		225,532		19,043,922		84.44		19,343,880		85.77
Thereafter	345,131		13,694,221		39.68		17,640,785		51.11		—		—		—		—		—

	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
2007	7,014	$	2,232,321	$	318.27	$	1,919,217	$	273.63	(1)	542,703	$	18,212,688	$	33.56	$	18,046,876	$	33.25
2008	8,159		1,260,486		154.49		1,252,494		153.51	(2)	739,928		24,576,813		33.22		25,044,358		33.85
2009	9,543		1,076,830		112.84		1,085,938		113.79		1,409,417		51,891,240		36.82		55,025,296		39.04
2010	41,291		739,345		17.91		739,345		17.91		479,464		14,798,917		30.87		15,480,255		32.29
2011	14,528		1,046,507		72.03		1,080,397		74.37		1,360,923		50,312,335		36.97		55,130,635		40.51
2012	62,916		2,568,442		40.82		2,669,224		42.43		986,916		35,483,808		35.95		37,326,378		37.82
2013	27,848		3,177,402		114.10		3,320,474		119.24		312,671		13,914,474		44.50		15,185,054		48.57
2014	19,902		2,236,116		112.36		2,395,660		120.37		562,302		22,857,631		40.65		24,298,617		43.21
2015	43,651		5,921,712		135.66		6,244,557		143.06		290,105		15,129,951		52.15		16,349,834		56.36
2016	14,617		1,496,848		102.40		1,823,637		124.76		455,321		27,035,503		59.38		28,209,778		61.96
Thereafter	391,737		14,663,364		37.43		17,090,929		43.63		736,868		28,357,585		38.48		34,731,714		47.13

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $68.18 and $62.17 in 2007.

(2)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $111.51 and $111.51 in 2008.

Boston Properties, Inc.

Fourth 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 2007	85,204	$	2,573,878	$	30.21	$	2,659,138	$	31.21		—	$	—	$	—	$	—	$	—
Q2 2007	167,664		5,904,425		35.22		5,904,425		35.22		—		—		—		—		—
Q3 2007	41,417		1,310,638		31.64		1,310,638		31.64		144,140		2,270,887		15.75		2,270,887		15.75
Q4 2007	97,264		3,920,540		40.31		3,982,572		40.95		—		—		—		—		—

Total 2007	391,549	$	13,709,480	$	35.01	$	13,856,772	$	35.39		144,140		2,270,887		15.75		2,270,887		15.75

Q1 2008	216,097	$	6,782,613	$	31.39	$	6,989,950	$	32.35		—	$	—	$	—	$	—	$	—
Q2 2008	266,336		8,596,440		32.28		8,661,469		32.52		—		—		—		—		—
Q3 2008	127,182		3,736,114		29.38		3,729,168		29.32		—		—		—		—		—
Q4 2008	122,154		4,201,160		34.39		4,411,277		36.11		—		—		—		—		—

Total 2008	731,769	$	23,316,327	$	31.86	$	23,791,863	$	32.51		—		—		—		—		—


	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 2007	1,076	$	524,204	$	487.18	$	392,204	$	364.50		86,280	$	3,098,082	$	35.91	$	3,051,342	$	35.37
Q2 2007	1,702		914,530		537.33		710,722		417.58		169,366		6,818,955		40.26		6,615,147		39.06
Q3 2007	5		324,996		64,999.20		299,796		59,959.20		185,562		3,906,521		21.05		3,881,321		20.92
Q4 2007	4,231		468,591		110.75		516,495		122.07		101,495		4,389,131		43.24		4,499,067		44.33

Total 2007	7,014		2,232,321	$	318.27	$	1,919,217	$	273.63	(1)	542,703	$	18,212,688	$	33.56	$	18,046,876	$	33.25

Q1 2008	2,690	$	431,949.36	$	160.58		419,949	$	156.12		218,787	$	7,214,562	$	32.98	$	7,409,899	$	33.87
Q2 2008	—		—		—		—		—		266,336		8,596,440		32.28		8,661,469		32.52
Q3 2008	—		—		—		—		—		127,182		3,736,114		29.38		3,729,168		29.32
Q4 2008	5,469		828,537		151.50		832,545		152.23		127,623		5,029,697		39.41		5,243,822		41.09

Total 2008	8,159	$	1,260,486	$	154.49	$	1,252,494	$	153.51	(2)	739,928	$	24,576,813	$	33.22	$	25,044,358	$	33.85

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $68.18 and $62.17 in 2007.

(2)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $111.51 and $111.51 in 2008.

Boston Properties, Inc.

Fourth 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
2007	343,035	$	12,192,438	$	35.54	$	12,199,434	$	35.56	125,710	$	2,773,484	$	22.06	$	2,773,484	$	22.06
2008	160,135		5,615,761		35.07		5,765,540		36.00	70,440		1,406,245		19.96		1,444,607		20.51
2009	691,108		24,128,494		34.91		24,625,141		35.63	78,908		1,610,153		20.41		1,668,678		21.15
2010	870,089		34,830,168		40.03		36,975,435		42.50	145,918		2,327,983		15.95		2,393,969		16.41
2011	770,079		27,272,844		35.42		29,952,675		38.90	57,321		890,329		15.53		890,329		15.53
2012	947,176		35,068,926		37.02		38,701,299		40.86	52,050		989,990		19.02		989,990		19.02
2013	65,364		1,961,603		30.01		2,271,411		34.75	—		—		—		—		—
2014	446,582		16,388,345		36.70		19,296,020		43.21	285,972		5,226,636		18.28		5,900,388		20.63
2015	784,442		29,121,601		37.12		34,689,772		44.22	—		—		—		—		—
2016	304,129		8,936,266		29.38		11,028,960		36.26	32,223		494,265		15.34		627,249		19.47
Thereafter	1,838,600		81,853,282		44.52		100,131,353		54.46	—		—		—		—		—

	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
2007	6,549		97,283		14.85		97,283		14.85	475,294	$	15,063,205	$	31.69	$	15,070,201	$	31.71
2008	18,152		782,738		43.12		793,255		43.70	248,727		7,804,744		31.38		8,003,402		32.18
2009	22,687		745,427		32.86		769,345		33.91	792,703		26,484,074		33.41		27,063,164		34.14
2010	20,590		810,496		39.36		865,754		42.05	1,036,597		37,968,647		36.63		40,235,158		38.81
2011	18,533		840,936		45.38		863,822		46.61	845,933		29,004,109		34.29		31,706,826		37.48
2012	11,984		410,987		34.29		494,340		41.25	1,011,210		36,469,902		36.07		40,185,629		39.74
2013	13,377		631,805		47.23		734,208		54.89	78,741		2,593,407		32.94		3,005,618		38.17
2014	9,602		428,979		44.68		495,769		51.63	742,156		22,043,959		29.70		25,692,178		34.62
2015	17,701		769,520		43.47		905,823		51.17	802,143		29,891,122		37.26		35,595,595		44.38
2016	13,304		606,532		45.59		683,895		51.41	349,656		10,037,063		28.71		12,340,104		35.29
Thereafter	25,493		838,092		32.88		1,264,278		49.59	1,864,093		82,691,374		44.36		101,395,632		54.39

Boston Properties, Inc.

Fourth 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 2007	7,744	$	286,907	$	37.05	$	286,907	$	37.05	—	$	—	$	—	$	—	$	—
Q2 2007	54,490		2,124,572		38.99		2,124,572		38.99	14,338		225,545		15.73		225,545		15.73
Q3 2007	258,822		9,000,365		34.77		9,000,365		34.77	—		—		—		—		—
Q4 2007	21,979		780,594		35.52		787,591		35.83	111,372		2,547,939		22.88		2,547,939		22.88

Total 2007	343,035	$	12,192,438	$	35.54	$	12,199,434	$	35.56	125,710	$	2,773,484	$	22.06	$	2,773,484	$	22.06

Q1 2008	35,095	$	1,194,780	$	34.04	$	1,220,079	$	34.77	—	$	—	$	—	$	—	$	—
Q2 2008	58,362		2,161,800		37.04		2,216,527		37.98	23,439		397,492		16.96		407,481		17.38
Q3 2008	40,506		1,412,774		34.88		1,452,873		35.87	—		—		—		—		—
Q4 2008	26,172		846,407		32.34		876,060		33.47	47,001		1,008,753		21.46		1,037,126		22.07

Total 2008	160,135	$	5,615,761	$	35.07	$	5,765,540	$	36.00	70,440	$	1,406,245	$	19.96	$	1,444,607	$	20.51


	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 2007	752	$	26,436	$	35.15	$	26,436	$	35.15	8,496	$	313,343	$	36.88	$	313,343	$	36.88
Q2 2007	5,797		70,847		12.22		70,847		12.22	74,625		2,420,964		32.44		2,420,964		32.44
Q3 2007	—		—		—		—		—	258,822		9,000,365		34.77		9,000,365		34.77
Q4 2007	—		—		—		—		—	133,351		3,328,533		24.96		3,335,529		25.01

Total 2007	6,549	$	97,283	$	14.85		97,283	$	14.85	475,294	$	15,063,205	$	31.69		15,070,201	$	31.71

Q1 2008	—	$	—	$	—	$	—	$	—	35,095	$	1,194,780	$	34.04	$	1,220,079	$	34.77
Q2 2008	—		—		—		—		—	81,801		2,559,292		31.29		2,624,008		32.08
Q3 2008	18,152		782,738		43.12		793,255		43.70	58,658		2,195,512		37.43		2,246,128		38.29
Q4 2008	—		—		—		—		—	73,173		1,855,160		25.35		1,913,187		26.15

Total 2008	18,152	$	782,738	$	43.12	$	793,255	$	43.70	248,727	$	7,804,744	$	31.38	$	8,003,402	$	32.18

Boston Properties, Inc.

Fourth 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
2007	367,829	$	16,148,471	$	43.90	$	16,166,951	$	43.95	—	$	—	$	—	$	—	$	—
2008	316,240		12,245,470		38.72		12,380,303		39.15	—		—		—		—		—
2009	164,736		7,278,160		44.18		7,466,870		45.33	—		—		—		—		—
2010	751,438		19,350,125		25.75		20,776,540		27.65	—		—		—		—		—
2011	277,158		21,513,185		77.62		21,394,553		77.19	—		—		—		—		—
2012	160,101		7,099,506		44.34		8,288,827		51.77	—		—		—		—		—
2013	133,639		5,011,379		37.50		5,642,456		42.22	—		—		—		—		—
2014	389,722		13,396,876		34.38		15,193,833		38.99	—		—		—		—		—
2015	324,236		8,166,321		25.19		9,883,976		30.48	—		—		—		—		—
2016	797,637		30,593,995		38.36		33,653,564		42.19	—		—		—		—		—
Thereafter	266,022		10,775,350		40.51		13,110,024		49.28	—		—		—		—		—
	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
2007	24,683	$	1,255,631	$	50.87	$	1,207,631	$	48.93	392,512	$	17,404,102	$	44.34	$	17,374,582	$	44.27
2008	34,132		1,823,022		53.41		1,841,230		53.94	350,372		14,068,492		40.15		14,221,532		40.59
2009	30,685		1,380,378		44.99		1,396,359		45.51	195,421		8,658,538		44.31		8,863,229		45.35
2010	37,667		1,904,241		50.55		1,951,716		51.81	789,105		21,254,366		26.93		22,728,256		28.80
2011	19,725		847,003		42.94		900,692		45.66	296,883		22,360,188		75.32		22,295,245		75.10
2012	30,939		2,044,088		66.07		2,154,613		69.64	191,040		9,143,593		47.86		10,443,441		54.67
2013	13,800		827,845		59.99		911,705		66.07	147,439		5,839,224		39.60		6,554,161		44.45
2014	8,365		535,307		63.99		591,420		70.70	398,087		13,932,183		35.00		15,785,252		39.65
2015	30,923		1,485,134		48.03		1,679,701		54.32	355,159		9,651,454		27.18		11,563,678		32.56
2016	7,887		434,540		55.10		482,894		61.23	805,524		31,028,535		38.52		34,136,458		42.38
Thereafter	895		103,867		116.05		59,098		66.03	266,917		10,879,217		40.76		13,169,122		49.34

Boston Properties, Inc.

Fourth 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 2007	99,936	$	4,252,838	$	42.56	$	4,252,838	$	42.56	—	$	—	$	—	$	—	$	—
Q2 2007	165,574		7,383,474		44.59		7,383,474		44.59	—		—		—		—		—
Q3 2007	88,428		4,002,534		45.26		4,002,534		45.26	—		—		—		—		—
Q4 2007	13,891		509,626		36.69		528,106		38.02	—		—		—		—		—

Total 2007	367,829	$	16,148,471	$	43.90	$	16,166,951	$	43.95	—		—		—		—		—

Q1 2008	180,016	$	6,794,129	$	37.74	$	6,813,808	$	37.85	—	$	—	$	—	$	—	$	—
Q2 2008	20,745		788,915		38.03		891,733		42.99	—		—		—		—		—
Q3 2008	84,706		3,651,312		43.11		3,592,755		42.41	—		—		—		—		—
Q4 2008	30,773		1,011,113		32.86		1,082,007		35.16	—		—		—		—		—

Total 2008	316,240	$	12,245,470	$	38.72	$	12,380,303	$	39.15	—		—		—		—		—


	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 2007	6,111	$	244,612	$	40.03	$	196,612	$	32.17	106,047	$	4,497,450	$	42.41	$	4,449,450	$	41.96
Q2 2007	868		75,438		86.91		75,438		86.91	166,442		7,458,912		44.81		7,458,912		44.81
Q3 2007	10,288		693,537		67.41		693,537		67.41	98,716		4,696,070		47.57		4,696,070		47.57
Q4 2007	7,416		242,044		32.64		242,044		32.64	21,307		751,671		35.28		770,150		36.15

Total 2007	24,683	$	1,255,631	$	50.87	$	1,207,631	$	48.93	392,512	$	17,404,102	$	44.34	$	17,374,582	$	44.27

Q1 2008	5,933	$	312,988	$	52.75	$	312,988	$	52.75	185,949	$	7,107,117	$	38.22	$	7,126,796		38.33
Q2 2008	1,242		128,599		103.54		128,599		103.54	21,987		917,514		41.73		1,020,333		46.41
Q3 2008	13,152		736,139		55.97		736,139		55.97	97,858		4,387,451		44.83		4,328,894		44.24
Q4 2008	13,805		645,296		46.74		663,503		48.06	44,578		1,656,409		37.16		1,745,510		39.16

Total 2008	34,132		1,823,022		53.41		1,841,230		53.94	350,372	$	14,068,492	$	40.15	$	14,221,532	$	40.59

Boston Properties, Inc.

Fourth 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
2007	27,011	$	1,876,537	$	69.47	$	1,877,044	$	69.49	—	$	—	$	—	$	—	$	—
2008	322,916		21,685,883		67.16		22,908,836		70.94	—		—		—		—		—
2009	138,519		9,672,287		69.83		9,810,720		70.83	—		—		—		—		—
2010	258,452		17,815,074		68.93		18,294,147		70.78	—		—		—		—		—
2011	99,909		6,874,330		68.81		7,275,009		72.82	—		—		—		—		—
2012	160,462		13,551,753		84.45		15,553,735		96.93	—		—		—		—		—
2013	56,636		3,971,294		70.12		7,161,817		126.45	—		—		—		—		—
2014	4,172		242,810		58.20		287,451		68.90	—		—		—		—		—
2015	65,862		4,229,149		64.21		4,546,953		69.04	—		—		—		—		—
2016	1,045,753		81,931,295		78.35		89,067,870		85.17	—		—		—		—		—
Thereafter	4,200,586		252,938,834		60.22		306,848,258		73.05	—		—		—		—		—

	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
2007	—	$	16,800	$	—	$	16,800	$	—	27,011	$	1,893,337	$	70.10	$	1,893,844	$	70.11
2008	14,726		732,881		49.77		724,929		49.23	337,642		22,418,763		66.40		23,633,765		70.00
2009	—		—		—		—		—	138,519		9,672,287		69.83		9,810,720		70.83
2010	—		—		—		—		—	258,452		17,815,074		68.93		18,294,147		70.78
2011	14,550		1,391,943		95.67		1,511,044		103.85	114,459		8,266,273		72.22		8,786,053		76.76
2012	6,050		731,931		120.98		867,303		143.36	166,512		14,283,684		85.78		16,421,037		98.62
2013	14,513		1,355,817		93.42		1,513,058		104.26	71,149		5,327,111		74.87		8,674,875		121.93
2014	11,368		1,203,334		105.85		1,458,669		128.31	15,540		1,446,144		93.06		1,746,120		112.36
2015	—		—		—		—		—	65,862		4,229,149		64.21		4,546,953		69.04
2016	51,371		3,263,359		63.53		3,668,681		71.42	1,097,124		85,194,654		77.65		92,736,551		84.53
Thereafter	98,619		14,048,225		142.45		18,947,005		192.12	4,299,205		266,987,060		62.10		325,795,263		75.78

Boston Properties, Inc.

Fourth 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 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	27,011		1,876,537		69.47		1,877,044		69.49	—		—		—		—		—
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	27,011	$	1,876,537	$	69.47	$	1,877,044	$	69.49	—	$	—	$	—	$	—	$	—

Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—		—	$	—
Q2 2008	9,481		582,107		61.40		582,107		61.40	—		—		—		—		—
Q3 2008	64,310		4,347,386		67.60		4,347,386		67.60	—		—		—		—		—
Q4 2008	249,125		16,756,390		67.26		17,979,343		72.17	—		—		—		—		—

Total 2008	322,916	$	21,685,883	$	67.16	$	22,908,836	$	70.94	—	$	—	$	—	$	—	$	—

	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 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	—		—		—		—		—	27,011		1,876,537		69.47		1,877,044		69.49
Q4 2007	—		16,800		—		16,800		—	—		16,800		—		16,800		—

Total 2007	—	$	16,800	$	—	$	16,800	$	—	27,011	$	1,893,337	$	70.10	$	1,893,844	$	70.11

Q1 2008	12,386	$	600,000	$	48.44		600,000	$	48.44	12,386	$	600,000	$	48.44		600,000	$	48.44
Q2 2008	350		26,166		74.76		26,166		74.76	9,831		608,273		61.87		608,273		61.87
Q3 2008	—		—		—		—		—	64,310		4,347,386		67.60		4,347,386		67.60
Q4 2008	1,990		106,714		53.63		98,763		49.63	251,115		16,863,105		67.15		18,078,107		71.99

Total 2008	14,726	$	732,881	$	49.77	$	724,929	$	49.23	337,642	$	22,418,763	$	66.40	$	23,633,765	$	70.00

Boston Properties, Inc.

Fourth 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
2007	370,596	$	12,571,629	$	33.92	$	12,571,629	$	33.92	—	$	—	$	—	$	—	$	—
2008	13,831		441,984		31.96		455,815		32.96	—		—		—		—		—
2009	268,473		9,178,909		34.19		9,534,841		35.52	—		—		—		—		—
2010	122,928		4,277,074		34.79		4,320,417		35.15	—		—		—		—		—
2011	347,938		11,409,309		32.79		11,921,140		34.26	—		—		—		—		—
2012	18,930		421,156		22.25		648,381		34.25	—		—		—		—		—
2013	144,108		4,693,810		32.57		5,084,978		35.29	—		—		—		—		—
2014	518,734		14,801,145		28.53		16,442,277		31.70	—		—		—		—		—
2015	154,152		4,138,290		26.85		4,873,463		31.61	—		—		—		—		—
2016	—		—		—		—		—	—		—		—		—		—
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
2007	—	$	—	$	—	$	—	$	—	370,596	$	12,571,629	$	33.92	$	12,571,629	$	33.92
2008	—		—		—		—		—	13,831		441,984		31.96		455,815		32.96
2009	—		—		—		—		—	268,473		9,178,909		34.19		9,534,841		35.52
2010	—		—		—		—		—	122,928		4,277,074		34.79		4,320,417		35.15
2011	—		—		—		—		—	347,938		11,409,309		32.79		11,921,140		34.26
2012	—		—		—		—		—	18,930		421,156		22.25		648,381		34.25
2013	—		—		—		—		—	144,108		4,693,810		32.57		5,084,978		35.29
2014	—		—		—		—		—	518,734		14,801,145		28.53		16,442,277		31.70
2015	—		—		—		—		—	154,152		4,138,290		26.85		4,873,463		31.61
2016	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	69,351		2,223,253		32.06		2,546,496		36.72

Boston Properties, Inc.

Fourth 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 2007	28,933	$	1,053,839	$	36.42	$	1,053,839	$	36.42	—	$	—	$	—	$	—	$	—
Q2 2007	21,198		729,695		34.42		729,695		34.42	—		—		—		—		—
Q3 2007	170,693		5,350,943		31.35		5,350,943		31.35	—		—		—		—		—
Q4 2007	149,772		5,437,152		36.30		5,437,152		36.30	—		—		—		—		—

Total 2007	370,596	$	12,571,629	$	33.92	$	12,571,629	$	33.92	—	$	—	$	—	$	—	$	—

Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2008	—		—		—		—		—	—		—		—		—		—
Q3 2008	—		—		—		—		—	—		—		—		—		—
Q4 2008	13,831		441,984		31.96		455,815		32.96	—		—		—		—		—

Total 2008	13,831	$	441,984	$	31.96	$	455,815	$	32.96	—	$	—	$	—	$	—	$	—


	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 2007	—	$	—	$	—	$	—	$	—	28,933	$	1,053,839	$	36.42	$	1,053,839	$	36.42
Q2 2007	—		—		—		—		—	21,198		729,695		34.42		729,695		34.42
Q3 2007	—		—		—		—		—	170,693		5,350,943		31.35		5,350,943		31.35
Q4 2007	—		—		—		—		—	149,772		5,437,152		36.30		5,437,152		36.30

Total 2007	—	$	—	$	—	$	—	$	—	370,596	$	12,571,629	$	33.92	$	12,571,629	$	33.92

Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2008	—		—		—		—		—	—		—		—		—		—
Q3 2008	—		—		—		—		—	—		—		—		—		—
Q4 2008	—		—		—		—		—	13,831		441,984		31.96		455,815		32.96

Total 2008	—	$	—	$	—	$	—	$	—	13,831	$	441,984	$	31.96	$	455,815	$	32.96

Boston Properties, Inc.

Fourth 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
2007	153,639	$	8,100,876	(1)	$	52.73	$	7,897,464	(1)	$	51.40	274,027	$	9,756,543	$	35.60	$	9,756,543	$	35.60
2008	270,575	$	11,260,330	(2)		41.62	$	11,237,331	(2)		41.53	40,224		1,756,913		43.68		1,796,756		44.67
2009	852,456	$	33,102,838			38.83	$	35,595,294			41.76	398,428		14,851,453		37.28		15,286,606		38.37
2010	173,475	$	5,966,598			34.39	$	6,164,616			35.54	447,695		20,271,518		45.28		21,578,045		48.20
2011	669,420	$	33,574,811			50.16	$	37,185,174			55.55	210,800		9,636,780		45.72		10,429,060		49.47
2012	372,238	$	17,299,065			46.47	$	18,139,331			48.73	91,522		3,832,798		41.88		3,906,113		42.68
2013	216,287	$	11,860,061			54.83	$	12,952,337			59.88	7,265		317,258		43.67		370,703		51.03
2014	474,948	$	20,469,481			43.10	$	21,644,512			45.57	63,796		3,259,081		51.09		3,885,715		60.91
2015	275,473	$	14,827,562			53.83	$	16,047,444			58.25	356,839		17,606,597		49.34		20,651,657		57.87
2016	296,421	$	22,336,670			75.35	$	23,215,945			78.32	57,782		2,472,363		42.79		3,042,248		52.65
Thereafter	603,268	$	22,947,735			38.04	$	28,782,463			47.71	1,302,625		61,678,212		47.35		80,464,313		61.77

	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
2007	27,011	$	1,893,337		$	70.10	$	1,893,844		$	70.11	367,851	$	16,795,936	$	45.66	$	16,757,048	$	45.55
2008	337,642		22,418,763			66.40		23,633,765			70.00	294,637		12,695,841		43.09		12,805,223		43.46
2009	138,519		9,672,287			69.83		9,810,720			70.83	162,974		7,872,723		48.31		8,008,060		49.14
2010	258,452		17,815,074			68.93		18,294,147			70.78	233,909		13,377,869		57.19		14,102,000		60.29
2011	114,459		8,266,273			72.22		8,786,053			76.76	275,146		21,820,525		79.31		21,692,435		78.84
2012	166,512		14,283,684			85.78		16,421,037			98.62	181,248		8,883,805		49.01		10,170,855		56.12
2013	71,149		5,327,111			74.87		8,674,875			121.93	137,428		5,544,900		40.35		6,207,386		45.17
2014	15,540		1,446,144			93.06		1,746,120			112.36	141,785		5,977,473		42.16		6,815,587		48.07
2015	65,862		4,229,149			64.21		4,546,953			69.04	133,197		5,635,579		42.31		6,007,608		45.10
2016	1,097,124		85,194,654			77.65		92,736,551			84.53	731,396		29,692,007		40.60		32,239,522		44.08
Thereafter	4,299,205		266,987,060			62.10		325,795,263			75.78	266,917		10,879,217		40.76		13,169,122		49.34

	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 6,214 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $39.88 and rent on expiring leases with future step-up is $40.60 per square foot in 2007.

(2)	Includes 8,159 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $38.11 and rent on expiring leases with future step-up is $38.05 per square foot in 2008.

Boston Properties, Inc.

Fourth 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
2007	389,064	$	10,111,812	$	25.99	$	10,149,412	$	26.09	201,267	$	5,306,661	$	26.37	$	5,313,658	$	26.40
2008	469,353		13,316,483		28.37		13,807,027		29.42	208,503		6,047,831		29.01		6,206,646		29.77
2009	556,961		18,788,402		33.73		19,430,002		34.89	394,275		11,632,621		29.50		11,776,558		29.87
2010	305,989		8,832,318		28.86		9,315,639		30.44	588,902		17,697,129		30.05		18,657,113		31.68
2011	691,503		16,737,524		24.20		17,945,461		25.95	635,133		19,367,329		30.49		21,277,766		33.50
2012	614,678		18,184,743		29.58		19,187,047		31.21	919,688		32,637,104		35.49		36,279,516		39.45
2013	96,384		2,054,413		21.31		2,232,717		23.16	71,476		2,276,149		31.84		2,634,915		36.86
2014	87,354		2,388,149		27.34		2,654,105		30.38	678,360		18,784,878		27.69		21,806,463		32.15
2015	14,632		302,390		20.67		302,390		20.67	445,304		12,284,524		27.59		14,943,938		33.56
2016	158,900		4,698,833		29.57		4,993,833		31.43	291,874		7,564,699		25.92		9,297,855		31.86
Thereafter	133,600		5,409,851		40.49		5,949,251		44.53	561,468		21,013,162		37.43		20,931,318		37.28

	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
2007	—	$	—	$	—	$	—	$	—	24,661	$	608,166	$	24.66	$	617,533	$	25.04
2008	—		—		—		—		—	55,735		1,372,651		24.63		1,416,309		25.41
2009	—		—		—		—		—	32,447		785,816		24.22		855,169		26.36
2010	—		—		—		—		—	555,196		7,876,497		14.19		8,626,256		15.54
2011	—		—		—		—		—	21,737		539,664		24.83		602,810		27.73
2012	—		—		—		—		—	9,792		259,788		26.53		272,585		27.84
2013	—		—		—		—		—	10,011		294,323		29.40		346,775		34.64
2014	—		—		—		—		—	256,302		7,954,710		31.04		8,969,665		35.00
2015	—		—		—		—		—	221,962		4,015,875		18.09		5,556,069		25.03
2016	—		—		—		—		—	74,128		1,336,528		18.03		1,896,936		25.59
Thereafter	—		—		—		—		—	—		—		—		—		—

	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
2007	370,596	$	12,571,629	$	33.92	$	12,571,629	$	33.92	—	$	—	$	—	$	—	$	—
2008	13,831		441,984		31.96		455,815		32.96	—		—		—		—		—
2009	268,473		9,178,909		34.19		9,534,841		35.52	—		—		—		—		—
2010	122,928		4,277,074		34.79		4,320,417		35.15	—		—		—		—		—
2011	347,938		11,409,309		32.79		11,921,140		34.26	—		—		—		—		—
2012	18,930		421,156		22.25		648,381		34.25	—		—		—		—		—
2013	144,108		4,693,810		32.57		5,084,978		35.29	—		—		—		—		—
2014	518,734		14,801,145		28.53		16,442,277		31.70	—		—		—		—		—
2015	154,152		4,138,290		26.85		4,873,463		31.61	—		—		—		—		—
2016	—		—		—		—		—	—		—		—		—		—
Thereafter	69,351		2,223,253		32.06		2,546,496		36.72	—		—		—		—		—

Boston Properties, Inc.

Fourth Quarter 2006

HOTEL PERFORMANCE

Long Wharf Marriott – Boston


	Fourth Quarter			Fourth Quarter			Percent		Year to Date			Year to Date			Percent
	2006			2005			Change		2006			2005			Change
Occupancy		81.0	%		78.0	%	3.8	%		83.9	%		81.4	%	3.1	%

Average Daily Rate	$	244.57		$	234.86		4.1	%	$	241.47		$	220.17		9.7	%

Revenue per available room	$	198.10		$	183.13		8.2	%	$	202.52		$	179.12		13.1	%

Cambridge Center Marriott


	Fourth Quarter			Fourth Quarter			Percent		Year to Date			Year to Date			Percent
	2006			2005			Change		2006			2005			Change
Occupancy		76.5	%		70.1	%	9.1	%		75.1	%(1)		73.7	%	1.9	%

Average Daily Rate	$	207.82		$	195.65		6.2	%	$	194.52		$	176.98		9.9	%

Revenue per available room	$	159.04		$	137.15		16.0	%	$	146.15		$	130.47		12.0	%

(1)	For the twelve months ended December 31, 2006, the Cambridge Center Marriott underwent a room renovation project which totaled approximately $5.6 million.

Total Hotel Performance


	Fourth Quarter			Fourth Quarter			Percent		Year to Date			Year to Date			Percent
	2006			2005			Change		2006			2005			Change
Occupancy		78.7	%		73.9	%	6.5	%		79.3	%		77.4	%	2.5	%

Average Daily Rate	$	225.56		$	214.57		5.1	%	$	217.18		$	197.82		9.8	%

Revenue per available room	$	177.89		$	159.34		11.6	%	$	173.35		$	153.95		12.6	%

Boston Properties, Inc.

Fourth Quarter 2006

OCCUPANCY ANALYSIS


*Same Property Occupancy⁽¹⁾ - By Location*

	CBD				Suburban				Total
Location	31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05
Greater Boston	96.4	%	89.9	%	87.0	%	93.3	%	91.8	%	91.5	%
Greater Washington	99.9	%	99.0	%	97.6	%	96.0	%	98.4	%	97.1	%
Midtown Manhattan	99.9	%	98.0	%	n/a		n/a		99.9	%	98.0	%
Princeton/East Brunswick, NJ	n/a		n/a		87.9	%	86.9	%	87.9	%	86.9	%
Greater San Francisco	87.1	%	91.1	%	94.6	%	89.8	%	88.5	%	90.8	%

Total Portfolio	96.5	%	94.8	%	92.1	%	93.0	%	94.7	%	94.1	%


*Same Property Occupancy⁽¹⁾ - By Type of Property*

	CBD				Suburban				Total
	31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05		31-Dec-06		31-Dec-05
Total Office Portfolio	96.5	%	94.8	%	93.5	%	92.4	%	95.3	%	93.9	%
Total Office/Technical Portfolio	100.0	%	100.0	%	81.0	%	97.5	%	81.9	%	97.6	%

Total Portfolio	96.5	%	94.8	%	92.1	%	93.0	%	94.7	%	94.1	%

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

Boston Properties, Inc.

Fourth Quarter 2006

SAME PROPERTY PERFORMANCE


*Office, Office/Technical and Hotel Properties*

	Office		Office/Technical			Hotel (1)			Total
Number of Properties	95			17			2			114
Square feet	27,384,034			1,402,213			750,400			29,536,647
Percent of in-service properties	92.5	%		85.9	%		100.0	%		92.3	%
Occupancy @ 12/31/2005	93.9	%		97.6	%		—			94.1	%
Occupancy @ 12/31/2006	95.3	%		81.9	%		—			94.7	%
Percent change from 4th quarter 2006 over 4th quarter 2005 (2):
Rental revenue	1.9	%		-12.3	%		13.4	%		2.4	%
Operating expenses and real estate taxes	0.7	%		-89.7	%		7.9	%		0.7	%
Net Operating Income (3)	2.5	%		8.1	%		28.1	%		3.3	%
Net Operating Income (3) - without hotels										2.6	%
Rental revenue - cash basis	1.2	%		-14.4	%		13.4	%		1.8	%
Net Operating Income (3) - cash basis (4)	1.5	%		5.3	%		28.2	%		2.4	%
Net Operating Income (3) - cash basis(4) - without hotels										1.6	%
*Same Property Lease Analysis - quarter ended December 31, 2006*

			Office			Office/Technical			Total
Vacant space available @ 10/1/2006 (sf)				1,425,191			253,704			1,678,895
Square footage of leases expiring or terminated 10/1/2006-12/31/2006				476,466			33,400			509,866

Total space for lease (sf)				1,901,657			287,104			2,188,761

New tenants (sf)				542,855			—			542,855
Renewals (sf)				82,961			33,400			116,361

Total space leased (sf)				625,816			33,400			659,216

Space available @ 12/31/2006 (sf)				1,275,841			253,704			1,529,545

Net (increase)/decrease in available space (sf)				149,350			—			149,350
2nd generation Average lease term (months)				76			36			73
2nd generation Average free rent (days)				79			—			73
2nd generation TI/Comm PSF			$	41.18		$	—		$	37.90
Increase (decrease) in 2nd generation gross rents (4)				29.63	%		2.49	%		28.86	%
Increase (decrease) in 2nd generation net rents (4)				45.74	%		5.19	%		44.83	%

(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 419,074 square feet.

Boston Properties, Inc.

Fourth Quarter 2006

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	12/31/2006			12/31/2005
	*(in thousands)*
Net income available to common shareholders	$	71,655		$	154,063
Cumulative effect of a change in accounting principle, net of minority interest		—			4,235
Gains on sales of real estate from discontinued operations, net of minority interest		—			(39,364	)
Income from discontinued operations, net of minority interest		—			(730	)
Gains on sales of real estate, net of minority interest		(1,183	)		(48,542	)
Minority interest in Operating Partnership		26,691			16,928
Income from unconsolidated joint ventures		(1,340	)		(1,530	)
Minority interest in property partnership		—			(1,366	)

Income before minority interests in property partnership, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		95,823			83,694

Add:
Loss from early entinguishment of debt		11			—
Depreciation and amortization		70,452			66,290
Interest expense		71,423			74,804
General and administrative expense		16,198			13,136

Subtract:
Interest and other income		(11,571	)		(2,726	)
Development and management services income		(5,661	)		(3,714	)

Consolidated Net Operating Income	$	236,675		$	231,484

Same Property Net Operating Income	$	219,651		$	212,590

Net operating income from non Same Properties (1)		14,791			14,855
Termination income		2,233			4,039

Consolidated Net Operating Income	$	236,675		$	231,484

Same Property Net Operating Income	$	219,651		$	212,590
Less straight-line rent and fair value lease revenue		15,342			13,136

Same Property Net Operating Income - cash basis	$	204,309		$	199,454

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

Boston Properties, Inc.

Fourth Quarter 2006

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office								Office/Technical
	For the three months ended				$ Change		% Change		For the three months ended					$ Change			% Change
	31-Dec-06		31-Dec-05		$ Change		% Change		31-Dec-06		31-Dec-05			$ Change			% Change
Rental Revenue	$	310,087	$	303,918					$	5,218	$	5,949

Less Termination Income		2,233		1,753						—		—

Rental revenue - subtotal		307,854		302,165		5,689	1.9	%		5,218		5,949			(731	)	-12.3	%

Operating expenses and real estate taxes		101,027		100,320		707	0.7	%		128		1,240			(1,112	)	-89.7	%

Net Operating Income (1)	$	206,827	$	201,845	$	4,982	2.5	%	$	5,090	$	4,709		$	381		8.1	%

Rental revenue - subtotal	$	307,854	$	302,165					$	5,218	$	5,949

Less straight line rent and fair value lease revenue		15,260		13,183		2,077	15.8	%		81		(49	)		130		-265.3	%

Rental revenue - cash basis		292,594		288,982		3,612	1.2	%		5,137		5,998			(861	)	-14.4	%

Less:
Operating expenses and real estate taxes		101,027		100,320		707	0.7	%		128		1,240			(1,112	)	-89.7	%

Net Operating Income (2) - cash basis	$	191,567	$	188,662	$	2,905	1.5	%	$	5,009	$	4,758		$	251		5.3	%


	Hotel									Total
	For the three months ended				$ Change			% Change		For the three months ended				$ Change		% Change
	31-Dec-06		31-Dec-05		$ Change			% Change		31-Dec-06		31-Dec-05		$ Change		% Change
Rental Revenue	$	25,126	$	22,162						$	340,431	$	332,029

Less Termination Income		—		—							2,233		1,753

Rental revenue - subtotal		25,126		22,162	$	2,965		13.4	%		338,198		330,276		7,923	2.4	%

Operating expenses and real estate taxes		17,392		16,125		1,267		7.9	%		118,547		117,685		862	0.7	%

Net Operating Income (1)	$	7,734	$	6,036	$	1,698		28.1	%	$	219,651	$	212,590	$	7,061	3.3	%

Rental revenue - subtotal	$	25,126	$	22,162						$	338,198	$	330,276

Less straight line rent and fair value lease revenue		1		2		(1	)	-50.0	%		15,342		13,136		2,206	16.8	%

Rental revenue - cash basis		25,125		22,160		2,966		13.4	%		322,856		317,140		5,717	1.8	%

Less:
Operating expenses and real estate taxes		17,392		16,125		1,267		7.9	%		118,547		117,685		862	0.7	%

Net Operating Income (2) - cash basis	$	7,733	$	6,034	$	1,699		28.2	%	$	204,309	$	199,454	$	4,855	2.4	%

(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.

Fourth Quarter 2006

LEASING ACTIVITY

All In-Service Properties - quarter ended December 31, 2006


	Office			Office/Technical			Total
Vacant space available @10/1/2006 (sf)		1,645,231			253,704			1,898,935
Property dispositions/ assets taken out of service (sf)		—			—			—
Property acquisitions/ assets placed in-service (sf)		154,780			—			154,780
Leases expiring or terminated 10/1/2006-12/31/2006 (sf)		487,997			33,400			521,397

Total space for lease (sf)		2,288,008			287,104			2,575,112

New tenants (sf)		630,887			—			630,887
Renewals (sf)		82,961			33,400			116,361

Total space leased (sf)		713,848			33,400			747,248	(1)

Space available @ 12/31/2006 (sf)		1,574,160			253,704			1,827,864

Net (increase)/decrease in available space (sf)		71,071			—			71,071
2nd generation Average lease term (months)		99			36			86
2nd generation Average free rent (days)		66			—			71
2nd generation TI/Comm PSF	$	34.29		$	—		$	32.03
Increase (decrease) in 2nd generation gross rents (2)		28.82	%		2.49	%		28.10	%
Increase (decrease) in 2nd generation net rents (3)		44.23	%		5.19	%		43.38	%

(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 507,106.

(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 507,106.


	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	880	184,227	-1.35	%	-4.07	%	185,107
Washington	72,787	121,285	-0.39	%	-1.10	%	194,072
New York	5,398	209,965	47.28	%	75.64	%	215,363
San Francisco	—	114,844	6.67	%	11.80	%	114,844
Princeton	—	37,862	-9.38	%	-13.68	%	37,862

	79,065	668,183	28.10	%	43.38	%	747,248

Boston Properties, Inc.

Fourth Quarter 2006

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS


*Historical Capital Expenditures*
(in thousands)

	Q4 2006		Q3 2006		Q2 2006			Q1 2006			2005		2004		2003
Recurring capital expenditures	$	10,174	$	6,063	$	5,275		$	4,206		$	22,369	$	25,101	$	18,514

Planned non-recurring capital expenditures associated with acquisition properties		1,551		1,809		289			220			2,957		4,889		4,464

Hotel improvements, equipment upgrades and replacements		1,213		505		1,988	(1)		4,263	(1)		4,097		1,001		2,345

	$	12,938	$	8,377	$	7,552		$	8,689		$	29,423	$	30,991	$	25,323


*2nd Generation Tenant Improvements and Leasing Commissions*

	Q4 2006		Q3 2006		Q2 2006		Q1 2006		2005		2004		2003
Office
Square feet		473,706		1,175,045		869,591		454,654		2,749,079		3,356,267		2,635,914

Tenant improvement and lease commissions PSF	$	34.29	$	19.89	$	34.00	$	38.40	$	28.75	$	24.74	$	14.41

Office/Technical
Square feet		33,400		—		—		—		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	$	32.03	$	19.89	$	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.

Fourth Quarter 2006

ACQUISITIONS/DISPOSITIONS

as of December 31, 2006

ACQUISITIONS

For the period from January 1, 2006 through December 31, 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	%
3200 Zanker Road, San Jose, CA	Aug-06	543,900		118,750,000		7,571,000		126,321,000	100	%
Four and Five Cambridge Center	Nov-06	436,047		186,000,000		9,647,000		195,647,000	65	%

Total Acquisitions		1,137,484	$	349,950,000	$	22,018,000	$	371,968,000	86	%

DISPOSITIONS

For the period from January 1, 2006 through December 31, 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			713,533,000	(2)
265 Franklin Street (35% Ownership Interest)	Sep-06		347,000		59,500,000	(3)		17,985,000	(3)

Total Dispositions			1,526,000	$	1,310,600,000		$	737,223,000

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

(2)

Subsequent to the sale, we signed new qualifying leases for 26,681 net rentable square feet of the 74,340 net rentable square foot master lease obligation related to the sale of 280 Park Avenue resulting in the recognition of approximately $21.0 million of additional book gain. We had deferred approximately $67.3 million of the book gain, which represented the maximum obligation under the master lease.

(3)	265 Franklin Street was owned through a joint venture in which we had a 35% interest. Amounts above represent our share of the Gross Sales Price and Book Gain.

Boston Properties, Inc.

Fourth Quarter 2006

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of December 31, 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 December 31, 2006		Estimated Future Equity Requirement		Percentage Leased (2)
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—	$	22,426,092	$	34,568,830	$	26,756,800	$	15,831,969	$	1,217,907	N/A
505 9th Street (50% ownership)	Q4 2007	Q4 2008	Washington, D.C.	1	323,000		45,838,831		65,000,000		47,500,000		21,752,416		—	87	%
South of Market	Q1 2008	Q3 2009	Reston, VA	3	652,000		56,521,302		213,800,000		200,000,000		11,439,884		—	23	%
77 Fourth Avenue	Q1 2008	Q4 2008	Waltham, MA	1	210,000		22,471,599		79,707,173		—		—		57,235,574	0	%
One Preserve Parkway	Q2 2008	Q4 2009	Rockville, MD	1	183,000		8,355,137		59,330,149		—		—		50,975,012	0	%

Total Development Properties				6	1,368,000	$	155,612,961	$	452,406,152	$	274,256,800	$	49,024,269	$	109,428,493	31	%


*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 December 31, 2006		Estimated Future Equity Requirement		Percentage Leased
Seven Cambridge Center Office	Q1 2006	Q1 2006	Cambridge, MA	1	231,028	$	103,449,390	$	103,500,000	$	—	$	—	$	50,610	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,424		38,451,129		38,500,000		—		—		48,871	100	%
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		65,561,502		67,100,000		—		—		1,538,498	97	%

Total Developments Placed in Service				2	732,009	$	207,462,021	$	209,100,000	$	—	$	—	$	1,637,979	99	%

(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 January 30, 2007.

Boston Properties, Inc.

Fourth Quarter 2006

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of December 31, 2006


		Developable
Location	Acreage	Square Feet
Reston, VA	34.8	1,130,000
Dulles, VA	76.6	934,000
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Rockville, MD	58.1	759,000
Waltham, MA	11.1	484,604
Marlborough, MA	50.0	400,000
Weston, MA	74.0	350,000
Boston, MA	0.2	304,500
Chevy Chase, MD	1.0	300,000
Springfield, VA	5.9	300,000
Washington, D.C.	0.5	170,000
Andover, MA	10.0	110,000

	352.9	6,933,104

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of December 31, 2006


		Developable
Location	Acreage	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.

Fourth 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 represents cash generated from operating activities determined in accordance with GAAP, and neither is 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), (2) the number of common partnership units issuable upon conversion of all outstanding long term incentive plan units of our operating partnership, or LTIP units, assuming all conditions have been met for the conversion of the LTIP units, and (3) 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 our 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. 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

FOURTH QUARTER 2006 RESULTS


Reports diluted FFO per share of $1.18		Reports diluted EPS of $0.60

BOSTON, MA, January 30, 2007 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the fourth quarter ended December 31, 2006.

Results for the quarter ended December 31, 2006

Funds from Operations (FFO) for the quarter ended December 31, 2006 were $141.9 million, or $1.21 per share basic and $1.18 per share diluted. This compares to FFO for the quarter ended December 31, 2005 of $126.7 million, or $1.13 per share basic and $1.09 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 116,895,438 and 121,456,257, respectively, for the quarter ended December 31, 2006 and 112,340,334 and 119,496,904, respectively, for the quarter ended December 31, 2005.

Net income available to common shareholders was $71.7 million for the three months ended December 31, 2006, compared to $154.1 million for the quarter ended December 31, 2005. Net income available to common shareholders per share (EPS) for the quarter ended December 31, 2006 was $0.61 basic and $0.60 on a diluted basis. This compares to EPS for the fourth quarter of 2005 of $1.35 basic and $1.32 on a diluted basis. EPS for the quarter ended December 31, 2006 reflects a reduction of $0.09, on a diluted basis, representing the amount of earnings allocated to the holders of Series Two Preferred Units of limited partnership interest in the Company’s Operating Partnership to account for their right to participate on an as-converted basis in the special dividend that was paid on January 30, 2007 to stockholders of record as of the close of business on December 29, 2006. EPS for the quarter ended December 31, 2005 includes $0.71, on a diluted basis, related to (1) gains on sales of real estate of $0.40, (2) discontinued operations of $0.35 and (3) the cumulative effect of a change in accounting principle of ($0.04).

Results for the year ended December 31, 2006

FFO for the year ended December 31, 2006 were $527.7 million, or $4.60 per share basic and $4.47 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 year ended December 31, 2005 of $489.0 million, or $4.39 per share basic and $4.25 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 $0.23 and $0.08 per share basic and $0.22 and $0.08 per share diluted for the years ended December 31, 2006 and 2005, respectively. The weighted average number of basic and diluted shares outstanding totaled 114,721,339 and 120,706,904, respectively, for the year ended December 31, 2006 and 111,274,188 and 118,722,134, respectively, for the year ended December 31, 2005.

Net income available to common shareholders was $873.6 million for the year ended December 31, 2006, compared to $438.3 million for the year ended December 31, 2005. Net income available to common shareholders per share (EPS) for the year ended December 31, 2006 was $7.62 basic and $7.46 on a diluted basis. This compares to EPS for the year ended December 31, 2005 of $3.94 basic and $3.86 on a diluted basis.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter and year ended December 31, 2006. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of December 31, 2006, the Company’s portfolio consisted of 131 properties comprising approximately 43.4 million square feet, including six properties under construction totaling 1.4 million square feet and two hotels. The overall percentage of leased space for the 123 properties in service as of December 31, 2006 was 94.2%.

Significant events of the fourth quarter include:

•

On October 2, 2006, the Company used available cash to repay the mortgage loan collateralized by its Embarcadero Center Three property located in San Francisco, California totaling approximately $133.4 million. There was no prepayment penalty associated with the repayment. The mortgage loan bore interest at a fixed rate of 6.40% per annum and was scheduled to mature on January 1, 2007.

•

On October 27, 2006, the Company acquired a parcel of land located in Waltham, Massachusetts for a purchase price of approximately $5.6 million.

•

On November 17, 2006, the Company executed a binding agreement for the sale of the long-term leasehold interest in 5 Times Square in New York City and related credits, for approximately $1.28 billion in cash. 5 Times Square is a fully-leased Class A office tower that contains approximately 1,101,779 net rentable square feet. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated, it is expected to close during the first quarter of 2007.

•

On November 21, 2006, the Company obtained construction financing totaling $200.0 million collateralized by its South of Market development project located in Reston, Virginia. South of Market is a Class A office project consisting of three buildings aggregating approximately 652,000 net rentable square feet. The construction financing bears interest at a variable rate equal to LIBOR plus 1.25% per annum and matures in November 2009 with two one-year extension options.

•

On November 30, 2006, the Company acquired Four and Five Cambridge Center and the Cambridge Center East Garage located in Cambridge, Massachusetts, at a purchase price of approximately $186.0 million. This property consists of two Class A office properties totaling approximately 436,000 net rentable square feet and structured parking for approximately 840 vehicles totaling approximately 300,000 square feet. The acquisition was financed with available cash. Four and Five Cambridge Center is currently approximately 65% leased with an average rental rate that is below market. The Company projects this property’s 2007 Unleveraged FFO Return to be 5.5% and 2007 Unleveraged Cash Return to be 4.8%. Assuming the Company leases substantially all of the currently available space at market rates by the end of 2008 and spends approximately $9.4 million for capital and tenant improvements and leasing commissions, the Company projects this property’s 2008 Unleveraged FFO Return to be 7.2% and 2008 Unleveraged Cash Return to be 6.7%. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2007 and 2008 Returns on Acquisition.” There can be no assurance that actual returns will not differ materially from these projections.

•

On December 6, 2006, the Company commenced construction of One Preserve Parkway, a Class A office property totaling approximately 183,000 net rentable square feet located in Rockville, Maryland. The Company expects that the project will be completed with initial occupancy in the second quarter of 2008.

•

On December 15, 2006, the Company announced that its Board of Directors declared a special cash dividend of $5.40 per common share payable on January 30, 2007 to shareholders of record as of the close of business on December 29, 2006. The decision to declare a special dividend was the result of the sales of assets in 2006, including 280 Park Avenue and 265 Franklin Street. The Board of Directors did not make any change in the Company’s policy with respect to regular quarterly dividends. The payment of the regular quarterly dividend of $0.68 per share and the special dividend of $5.40 per share will result in a total payment of $6.08 per share payable on January 30, 2007. Holders of common units of limited partnership interest in Boston Properties Limited Partnership, the Company’s Operating Partnership, as of the close of business on December 29, 2006 will receive the same total distribution, payable on January 30, 2007. Holders of Series Two Preferred Units of limited partnership interest will participate in the special cash dividend (separately from their regular February 2007 distribution) on an as-converted basis in connection with their regular May 2007 distribution payment as provided in the Operating Partnership’s partnership agreement.

•

On December 19, 2006, the Company entered into an interest rate lock agreement with a lender for a fixed interest rate of 5.57% per annum on a ten-year mortgage financing totaling $750.0 million to be collateralized by the Company’s 599 Lexington Avenue property in

New York City. The Company expects to close on the mortgage financing by the end of February 2007, although there can be no assurance that the financing will be consummated on the terms currently contemplated or at all. In conjunction with the interest rate lock agreement, the Company terminated its forward-starting interest rate swap contracts with notional amounts aggregating $500.0 million and received approximately $10.9 million, which amount will reduce the Company’s interest expense over the ten-year term of the financing, resulting in an effective interest rate of 5.38% per annum.

•

On December 22, 2006, the Company executed a contract to acquire Kingstowne Towne Center, a mixed-use property located in Alexandria, Virginia, at a purchase price of approximately $134.0 million. This property is comprised of two Class A office properties totaling approximately 307,000 net rentable square feet and a retail/movie theater complex totaling approximately 88,000 net rentable square feet. The acquisition is subject to the satisfaction of customary closing conditions and there can be no assurance that the acquisition will be consummated on the terms currently contemplated or at all.

Transactions completed subsequent to December 31, 2006:

•

On January 5, 2007 and January 18, 2007, the Company acquired adjacent parcels of land located in Springfield, Virginia for a purchase price of approximately $12.0 million and $4.5 million, respectively. The Company also has an agreement to acquire an additional adjacent parcel of land for a purchase price of approximately $25.6 million. The assembled land parcels will support a commercial development of approximately 800,000 net rentable square feet.

•

On January 9, 2007, the Company acquired a parcel of land located in New York City, through a majority-owned venture, for a purchase price of approximately $38.8 million. On January 24, 2007, the Company acquired an adjacent parcel of land, through a majority-owned venture, for a purchase price of approximately $160.0 million. The Company also has agreements to acquire other real estate interests, through the majority-owned venture, for approximately $60.0 million. The acquisitions were financed with a $160.0 million mortgage loan bearing interest at a variable rate equal to LIBOR plus 0.40% per annum and maturing in January 2009. The assembled land parcels will support the development of an approximately 885,000 net rentable square foot Class A office tower.

•

On January 29, 2007, the Company acquired a parcel of land located in Waltham, Massachusetts for a purchase price of approximately $13.9 million.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter and full year 2007 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below.


	First Quarter 2007					Full Year 2007
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	5.68	-	$	5.69	$	7.59	-	$	7.69
Add:


Projected Company Share of Real Estate Depreciation and Amortization		0.50	-		0.50		2.00	-		2.00
Less:
Projected Company Share of Gains on Sales of Real Estate		5.14	-		5.14		5.14	-		5.14

Projected FFO per Share (diluted)	$	1.04	-	$	1.05	$	4.45	-	$	4.55

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, dispositions or financings. 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.

Boston Properties will host a conference call tomorrow, January 31, 2007 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full fiscal year 2006 results, the 2007 projections and related assumptions, and other related matters that may be of interest to investors. The number to call for this interactive teleconference is (800) 219-6110 (Domestic) or (303) 262-2190 (International); no passcode required. A replay of the conference call will be available through February 7, 2007, by dialing (800) 405-2236 (Domestic) or (303) 590-3000 (International) and entering the passcode 11080783. There will also be a live audio webcast of the call which may be accessed on the Company’s website at www.bostonproperties.com in the Investor Relations section, through www.fulldisclosure.com for individual investors, or through the password-protected event management site, www.streetevents.com, for institutional investors. Shortly after the call a replay of the webcast and a podcast will be available on the Company’s website, www.bostonproperties.com, in the Investor Relations section, and archived for up to twelve months following the call.

Additionally, a copy of Boston Properties’ fourth 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 “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, acquisition and disposition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, the effects of acquisitions and dispositions (including the exact amount and timing of any related special dividend and possible impairment charges) on our operating results, 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 first quarter and full fiscal year 2007.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended December 31,						Year ended December 31,
	2006			2005			2006			2005
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	278,186		$	279,583		$	1,104,773		$	1,110,212
Recoveries from tenants		42,868			44,098			181,521			173,254
Parking and other		15,261			14,051			57,740			55,567

Total rental revenue		336,315			337,732			1,344,034			1,339,033
Hotel revenue		25,126			22,161			76,990			69,277
Development and management services		5,661			3,714			19,825			17,310
Interest and other		11,571			2,726			36,737			12,015

Total revenue		378,673			366,333			1,477,586			1,437,635

Expenses
Operating:
Rental		107,374			112,284			441,814			438,335
Hotel		17,392			16,125			55,538			51,689
General and administrative		16,198			13,136			59,375			55,471
Interest		71,423			74,804			298,260			308,091
Depreciation and amortization		70,452			66,290			276,759			266,829
Losses from early extinguishments of debt		11			—			32,143			12,896

Total expenses		282,850			282,639			1,163,889			1,133,311

Income before minority interest in property partnership, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate, discontinued operations and cumulative effect of a change in accounting principle		95,823			83,694			313,697			304,324
Minority interest in property partnership		—			1,366			2,013			6,017
Income from unconsolidated joint ventures		1,340			1,530			24,507			4,829

Income before minority interest in Operating Partnership, gains on sales of real estate, discontinued operations and cumulative effect of a change in accounting principle		97,163			86,590			340,217			315,170
Minority interest in Operating Partnership		(26,691	)		(16,928	)		(72,976	)		(74,103	)

Income before gains on sales of real estate, discontinued operations and cumulative effect of a change in accounting principle		70,472			69,662			267,241			241,067
Gains on sales of real estate, net of minority interest		1,183			48,542			606,394			151,884

Income before discontinued operations and cumulative effect of a change in accounting principle		71,655			118,204			873,635			392,951
Discontinued operations:
Income from discontinued operations, net of minority interest		—			730			—			1,908
Gains on sales of real estate from discontinued operations, net of minority interest		—			39,364			—			47,656

Income before cumulative effect of a change in accounting principle		71,655			158,298			873,635			442,515
Cumulative effect of a change in accounting principle		—			(4,235	)		—			(4,223	)

Net income available to common shareholders	$	71,655		$	154,063		$	873,635		$	438,292

Basic earnings per common share:
Income available to common shareholders before discontinued operations and cumulative effect of a change in accounting principle	$	0.61		$	1.03		$	7.62		$	3.53
Discontinued operations, net of minority interest		—			0.36			—			0.45
Cumulative effect of a change in accounting principle, net of minority interest		—			(0.04	)		—			(0.04	)

Net income available to common shareholders	$	0.61		$	1.35		$	7.62		$	3.94

Weighted average number of common shares outstanding		116,895			112,340			114,721			111,274

Diluted earnings per common share:
Income available to common shareholders before discontinued operations and cumulative effect of a change in accounting principle	$	0.60		$	1.01		$	7.46		$	3.46
Discontinued operations, net of minority interest		—			0.35			—			0.44
Cumulative effect of a change in accounting principle, net of minority interest		—			(0.04	)		—			(0.04	)

Net income available to common shareholders	$	0.60		$	1.32		$	7.46		$	3.86

Weighted average number of common and common equivalent shares outstanding		119,190			114,640			117,077			113,559

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	December 31, 2006			December 31, 2005
	(in thousands, except for share amounts) (unaudited)
ASSETS
Real estate	$	8,819,934		$	8,724,954
Real estate held for sale, net		433,492			—
Construction in progress		115,629			177,576
Land held for future development		183,403			248,645
Less: accumulated depreciation		(1,392,055	)		(1,265,073	)

Total real estate		8,160,403			7,886,102

Cash and cash equivalents		725,788			261,496
Cash held in escrows		25,784			25,618
Tenant and other receivables, net of allowance for doubtful accounts of $2,682 and $2,519, respectively		57,052			52,668
Accrued rental income, net of allowance of $783 and $2,638, respectively		327,337			302,356
Deferred charges, net		274,079			242,660
Prepaid expenses and other assets		40,868			41,261
Investments in unconsolidated joint ventures		83,711			90,207

Total assets	$	9,695,022		$	8,902,368

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	2,679,462		$	3,297,192
Unsecured senior notes, net of discount		1,471,475			1,471,062
Unsecured exchangeable senior notes		450,000			—
Unsecured line of credit		—			58,000
Accounts payable and accrued expenses		102,934			109,823
Dividends and distributions payable		857,892			107,643
Accrued interest payable		47,441			47,911
Other liabilities		239,084			154,123

Total liabilities		5,848,288			5,245,754

Commitments and contingencies		—			—

Minority interests		623,508			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, 117,582,442 and 112,621,162 shares issued and 117,503,542 and 112,542,262 shares outstanding in 2006 and 2005, respectively		1,175			1,125
Additional paid-in capital		3,119,941			2,745,719
Earnings in excess of dividends		108,155			182,105
Treasury common stock, at cost		(2,722	)		(2,722	)
Accumulated other comprehensive loss		(3,323	)		(8,881	)

Total stockholders’ equity		3,223,226			2,917,346

Total liabilities and stockholders’ equity	$	9,695,022		$	8,902,368

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended December 31,						Year ended December 31,
	2006			2005			2006			2005
	(in thousands, except for per share amounts) (unaudited)
Net income available to common shareholders	$	71,655		$	154,063		$	873,635		$	438,292

Add:
Minority interest in Operating Partnership		26,691			16,928			72,976			74,103
Cumulative effect of a change in accounting principle		—			4,235			—			4,223
Less:
Minority interest in property partnership		—			1,366			2,013			6,017
Income from unconsolidated joint ventures		1,340			1,530			24,507			4,829
Gains on sales of real estate, net of minority interest		1,183			48,542			606,394			151,884
Income from discontinued operations, net of minority interest		—			730			—			1,908
Gains on sales of real estate from discontinued operations, net of minority interest		—			39,364			—			47,656

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		95,823			83,694			313,697			304,324

Add:
Real estate depreciation and amortization (2)		71,495			67,987			283,350			274,476
Income from discontinued operations		—			869			—			2,279
Income from unconsolidated joint ventures		1,340			1,530			6,590	(3)		4,829
Less:
Minority interest in property partnership’s share of funds from operations		—			114			479			113
Preferred distributions (4)		1,431			3,098			9,418			12,918

Funds from operations (FFO)		167,227			150,868			593,740			572,877

Add:
Losses from early extinguishments of debt associated with the sales of real estate		—			—			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		167,227			150,868			625,184			583,918
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		25,377			24,167			97,519			94,946

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	$	141,850		$	126,701		$	527,665		$	488,972

Our percentage share of funds from operations - basic		84.82	%		83.98	%		84.40	%		83.74	%

Weighted average shares outstanding - basic		116,895			112,340			114,721			111,274

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.21		$	1.13		$	4.60		$	4.39

FFO per share basic	$	1.21		$	1.13		$	4.37		$	4.31

Weighted average shares outstanding - diluted		121,456			119,497			120,707			118,722

FFO per share diluted after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.18		$	1.09		$	4.47		$	4.25

FFO per share diluted	$	1.18		$	1.09		$	4.25		$	4.17

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $70,452, $66,290, $276,759 and $266,829, our share of unconsolidated joint venture real estate depreciation and amortization of $2,250, $2,174, $9,087 and $8,554 and depreciation and amortization from discontinued operations of $0, $63, $0 and $812, less corporate related depreciation and amortization of $295, $540, $1,584 and $1,719 and adjustment of asset retirement obligations of $912, $0, $912 and $0 for the three months and year ended December 31, 2006 and 2005, respectively.

(3)	Excludes approximately $17.9 million related to our share of the gain on sale and related loss from early extinguishment of debt associated with the sale of 265 Franklin Street.

(4)

Excludes approximately $12.2 million for the three months and year ended December 31, 2006 and approximately $12.1 million for the year ended December 31, 2005 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.

BOSTON PROPERTIES, INC.

PROJECTED 2007 AND 2008 RETURNS ON ACQUISITION


	Four and Five Cambridge Center and East Garage
	2007			2008
	(dollars in thousands)
Base rent and recoveries from tenants	$	11,715		$	15,645
Straight-line rent		249			169
Fair value lease revenue		936			858
Parking and other		2,009			2,072

Total rental revenue		14,909			18,744
Operating Expenses		4,479			4,642

Revenue less Operating Expenses		10,430			14,102
Depreciation and amortization		11,074			9,687

Net income (loss)	$	(644	)	$	4,415

Add:
Depreciation and amortization		11,074			9,687

Unleveraged FFO	$	10,430		$	14,102

Less:
Straight-line rent		(249	)		(169	)
Fair value lease revenue		(936	)		(858	)

Unleveraged Cash	$	9,245		$	13,075

Cash	$	186,000		$	186,000
Closing costs		275			275
Tenant costs and capital improvements		4,925			9,372

Total Investment	$	191,200		$	195,647

Unleveraged FFO Return (1)		5.5	%		7.2	%

Unleveraged Cash Return (2)		4.8	%		6.7	%

(1)

Unleveraged FFO Return is determined by dividing the Unleveraged FFO (based on the projected results for the years ending December 31, 2007 and 2008) by Total Investment. Other real estate companies may calculate this return differently. Management believes projected Unleveraged FFO Return is a useful measure in the real estate industry when determining the appropriate purchase price for a property or estimating a property’s value. When evaluating acquisition opportunities, management considers, among other factors, projected Unleveraged FFO Return because it excludes, among other items, interest expense (which may vary depending on the level of corporate debt or property-specific debt), as well as depreciation and amortization expense (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates). In addition, management considers its cost of capital and available financing alternatives in making decisions concerning acquisitions.

(2)

Unleveraged Cash Return is determined by dividing the Unleveraged Cash (based on the projected results for the years ending December 31, 2007 and 2008) by Total Investment. Other real estate companies may calculate this return differently. Management believes that projected Unleveraged Cash Return is also a useful measure of a property’s value when used in addition to Unleveraged FFO Return because, by eliminating the effect of straight-lining of rent and the SFAS No. 141 treatment of in-place above- and below-market leases, it enables an investor to assess the cash on cash return from the property over the forecasted period.

Management is presenting these projected returns and related calculations to assist investors in analyzing the Company’s recent acquisition. Management does not intend to present this data for any other purpose, for any other period or for its other properties, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. The Company does not undertake a duty to update any of these projections.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	December 31, 2006		December 31, 2005
Greater Boston	89.9	%	89.9	%
Greater Washington, D.C.	98.0	%	97.2	%
Midtown Manhattan	99.9	%	98.3	%
Princeton/East Brunswick, NJ	87.9	%	86.9	%
Greater San Francisco	90.2	%	90.8	%

Total Portfolio	94.2	%	93.8	%


	% Leased by Type
	December 31, 2006		December 31, 2005
Class A Office Portfolio	94.7	%	93.7	%
Office/Technical Portfolio	84.5	%	97.6	%

Total Portfolio	94.2	%	93.8	%