SEC Filing

View:

Download DOC

Download PDF

Download XLS

Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 24, 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.)

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02.

Results of Operations and Financial Condition.

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

On July 24, 2007, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter of 2007. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.		Description
*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2007.

*99.2		Press release dated July 24, 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: July 24, 2007	By:	/s/ Douglas T. Linde
		Douglas T. Linde
		President and Chief Financial Officer

EXHIBIT INDEX


Exhibit No.		Description
*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2007.

*99.2		Press release dated July 24, 2007.

*	Filed herewith.

Supplemental Operating and Financial Data for the Quarter Ended June 30, 2007

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2007

Boston Properties, Inc.

Second Quarter 2007

Table of Contents


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

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, 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.

Second Quarter 2007

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 one hotel. 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-two individuals average twenty-five years of real estate experience and fifteen years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Mortimer B. Zuckerman, Chairman of our Board of Directors, Edward H. Linde, Chief Executive Officer, and Douglas T. Linde, our President and Chief Financial Officer. Each has a national reputation, which attracts business and investment opportunities. In addition, our two 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 nine distinquished members, the majority of which serve as Independent Directors.

Strategy

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

Snapshot

(as of June 30, 2007)


Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		December 31
Total Properties		134
Total Square Feet		42.7 million
Common Shares and
Units Outstanding (as converted)		141.7 million
Dividend—Quarter/Annualized		$0.68/$2.72
Dividend Yield		2.66%
Total Market Capitalization		$20.1 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (Fitch); BBB+ (S&P)

Boston Properties, Inc.

Second Quarter 2007


INVESTOR INFORMATION
Board of Directors		Management
Mortimer B. Zuckerman	Carol B. Einiger	Douglas T. Linde	Mitchell S. Landis
Chairman of the Board	Director	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
Chief Executive Officer and Director	Director, Chair of Audit Committee	Executive Vice President, Chief Operating Officer	Senior Vice President and Regional Manager of San Francisco

Lawrence S. Bacow	Richard E. Salomon	Raymond A. Ritchey	Robert E. Selsam
Director	Director, Chair 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, Chair of Nominating & Corporate Governance Committee	Director	Senior Vice President and Regional Manager of Washington, D.C.	Senior Vice President, General Counsel

	David A. Twardock	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
800 Boylston Street Suite 1900 Boston, MA 02199 (t) 617.236.3300 (f) 617.236.3311	BXP Stock Exchange Listing New York Stock Exchange	Boston Properties, Inc. 800 Boylston Street, Suite 1900 Boston, MA 02199 (t) 617.236.3322 (f) 617.236.3311 www.bostonproperties.com	Financial inquiries should be directed to Michael Walsh, Senior Vice President - Finance, at 617.236.3410 or mwalsh@bostonproperties.com

			Investor or media 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):

	Q2 2007			Q1 2007			Q4 2006			Q3 2006			Q2 2006
High Closing Price	$	119.47		$	130.75		$	118.00		$	104.98		$	91.55
Low Closing Price	$	100.07		$	109.72		$	103.23		$	91.26		$	82.87
Average Closing Price	$	112.73		$	120.10		$	109.59		$	98.49		$	87.43
Closing Price, at the end of the quarter	$	102.13		$	117.40		$	111.88		$	103.34		$	90.40
Dividends per share—annualized (1)	$	2.72		$	2.72		$	2.72		$	2.72		$	2.72
Closing dividend yield—annualized (1)		2.66	%		2.32	%		2.43	%		2.63	%		3.01	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		141,666			141,642			141,099			140,435			140,291
Closing market value of outstanding shares and units (thousands)	$	14,468,349		$	16,628,771		$	15,786,156		$	14,512,553		$	12,682,306

(1)

Excludes special dividend of $5.40 per share paid on January 30, 2007.


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

Third Quarter				Late October 2007
Fourth Quarter				Late January 2008

Boston Properties, Inc.

Second Quarter 2007

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
Mitchell Germain	Jordan Sadler / Craig Mailman	Sue Berliner / Elizabeth Carter	212.908.0304
Banc of America Securities	KeyBanc Capital Markets	Bear Stearns & Company
212.847.5794	917.368.2280 / 917.368.2316	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

Lou Taylor / Kristin Brown	Matthew Ostrower / David Cohen	Scott O’Shea
Deutsche Bank Securities	Morgan Stanley & Company	Deutsche Bank Securities
203.863.2381 / 212.250.6799	212.761.6284 / 212.761.8564	212.250.7190

Wilkes Graham / Matt Konrad	John Guinee	Mark Streeter
Friedman, Billings, Ramsey	Stifel, Nicolaus & Company	J.P. Morgan Securities
703.312.9737 / 703.312.9731	410.454.5520	212.834.5086

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

Michael Knott
Green Street Advisors
949.640.8780

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

Boston Properties, Inc.

Second Quarter 2007

FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

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


	Three Months Ended
	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
Income Items:
Revenue	$	375,128		$	363,695		$	363,941		$	359,497		$	357,911
Straight line rent (SFAS 13)	$	8,492		$	12,872		$	15,942		$	12,841		$	11,723
Fair value lease revenue (SFAS 141) (1)	$	1,491		$	1,509		$	1,395		$	1,111		$	492
Lease termination fees (included in revenue) (2)	$	729		$	2,550		$	2,233		$	3,692		$	1,400
Capitalized interest	$	7,944		$	4,308		$	1,365		$	1,560		$	1,304
Capitalized wages	$	2,814		$	2,326		$	2,066		$	2,082		$	1,523
Operating Margins [(rental revenue — rental expense)/rental revenue] (3)		67.8	%		67.9	%		69.6	%		68.3	%		68.9	%
Net income available to common shareholders	$	102,344		$	854,307		$	71,655		$	107,962		$	625,731
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)	$	142,944		$	133,011		$	141,850		$	137,276		$	129,390
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		$	1.10		$	1.18		$	1.16		$	1.10
Net income available to common shareholders per share—basic	$	0.86		$	7.14		$	0.61		$	0.93		$	5.33
Net income available to common shareholders per share -diluted	$	0.84		$	6.99		$	0.60		$	0.91		$	5.23
Dividends per common share (5)	$	0.68		$	0.68		$	6.08		$	0.68		$	0.68
Funds available for distribution to common shareholders and common unitholders (FAD) (6)	$	134,345		$	129,162		$	125,053		$	120,919		$	110,307

Ratios:
Interest Coverage Ratio (excluding capitalized interest)—cash basis (7)		3.24			3.02			3.21			3.12			2.92
Interest Coverage Ratio (including capitalized interest)—cash basis (7)		2.92			2.85			3.15			3.06			2.87
FFO Payout Ratio (8)		57.63	%		61.82	%		57.63	%		58.62	%		61.82	%
FAD Payout Ratio (9)		70.86	%		73.56	%		75.50	%		77.26	%		83.77	%

	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
Capitalization:

Total Debt	$	5,619,602		$	5,736,139		$	4,600,937		$	4,733,323		$	4,833,401
Common Stock Price @ Quarter End	$	102.13		$	117.40		$	111.88		$	103.34		$	90.40
Equity Value @ Quarter End	$	14,468,349		$	16,628,771		$	15,786,156		$	14,512,553		$	12,682,306
Total Market Capitalization (10)	$	20,087,951		$	22,364,910		$	20,387,093		$	19,245,876		$	17,515,707
Debt/Total Market Capitalization (10)		27.97	%		25.65	%		22.57	%		24.59	%		27.59	%

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

(2)	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 and other amounts totaling $8,755, $8,833, $7,176, $8,826 and $7,907 for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, 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 to holders of record as of the close of business on December 29, 2006.

(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.

Second Quarter 2007

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
ASSETS
Real estate	$	9,037,468		$	9,019,237		$	8,819,934		$	9,040,264		$	8,698,493
Development in progress		584,620			500,995			115,629			57,392			78,926
Land held for future development		189,698			185,093			183,403			210,336			222,519
Real estate held for sale		—			18,282			433,492			—			—
Less accumulated depreciation		(1,474,771	)		(1,414,857	)		(1,392,055	)		(1,372,826	)		(1,314,472	)

Total real estate		8,337,015			8,308,750			8,160,403			7,935,166			7,685,466
Cash and cash equivalents		1,885,318			2,016,336			725,788			1,049,026			370,396
Cash held in escrows		22,665			20,334			25,784			21,436	(1)		894,244	(1)
Tenant and other receivables, net		48,398			50,799			57,052			42,128			35,814
Accrued rental income, net		296,424			288,824			327,337			310,560			298,306
Deferred charges, net		264,664			244,846			274,079			263,675			250,154
Prepaid expenses and other assets		47,174			63,896			40,868			72,033			79,174
Investments in unconsolidated joint ventures		92,944			91,955			83,711			83,485			96,962

Total assets	$	10,994,602		$	11,085,740		$	9,695,022		$	9,777,509		$	9,710,516


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	2,855,889		$	2,973,571		$	2,679,462		$	2,811,953		$	2,912,135
Unsecured senior notes, net of discount		1,471,691			1,471,583			1,471,475			1,471,370			1,471,266
Unsecured exchangeable senior notes, net of discount		1,292,022			1,290,985			450,000			450,000			450,000
Unsecured line of credit		—			—	(2)		—	(2)		—	(2)		—	(2)
Accounts payable and accrued expenses		123,910			101,188			102,934			103,581			90,390
Dividends and distributions payable		96,192			105,284			857,892			95,607			95,839
Accrued interest payable		59,105			48,917			47,441			45,703			50,175
Other liabilities		201,406	(3)		229,666	(3)		239,084	(3)		236,350	(3)		246,042	(3)

Total liabilities		6,100,215			6,221,194			5,848,288			5,214,564			5,315,847


Commitments and contingencies		—			—			—			—			—


Minority interests		731,043			726,937			623,508			746,416			824,924


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, 119,028,081, 118,970,065, 117,503,542, 116,597,035 and 114,219,448 outstanding, respectively		1,190			1,190			1,175			1,166			1,142
Additional paid-in capital		3,263,797			3,260,647			3,119,941			3,068,952			2,831,119
Earnings in excess of dividends		904,417			881,733			108,155			749,940			720,623
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Accumulated other comprehensive income (loss)		(3,338	)		(3,239	)		(3,323	)		(807	)		19,583

Total stockholders’ equity		4,163,344			4,137,609			3,223,226			3,816,529			3,569,745

Total liabilities and stockholders’ equity	$	10,994,602		$	11,085,740		$	9,695,022		$	9,777,509		$	9,710,516

(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 was included within Mortgage Notes Payable. The secured draw was repaid on February 12, 2007 in conjunction with new ten-year mortgage financing collateralized by 599 Lexington Avenue totaling $750.0 million.

(3)

At June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, Other Liabilities included approximately $26.9 million, $27.4 million, $45.8 million, $46.4 million and $67.3 million and approximately $10.7 million, $13.0 million, $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 $23.7 million, $48.0 million, $47.3 million, $46.6 million and $45.8 million, respectively related to the redemption of the outside members’ equity interests in the entity that owns Citigroup Center.

Boston Properties, Inc.

Second Quarter 2007

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Jun-07			31-Mar-07			31-Dec-06			30-Sep-06			30-Jun-06
Revenue:
Rental
Base Rent	$	270,508		$	272,908		$	277,281		$	272,146		$	276,298
Recoveries from tenants		47,462			47,042			42,817			45,896			45,322
Parking and other		16,488			15,321			15,211			13,967			14,146

Total rental revenue		334,458			335,271			335,309			332,009			335,766
Hotel revenue		9,335			6,709			11,417			8,319			8,364
Development and management services		5,130			4,727			5,661			4,558			5,227
Interest and other (1)		26,205			16,988			11,554			14,611			8,554

Total revenue		375,128			363,695			363,941			359,497			357,911


Expenses:
Operating		69,081			69,106			64,036			67,875			66,226
Real estate taxes		44,543			44,469			43,090			43,301			43,507
Hotel operating		6,417			6,014			8,106			6,339			5,513
General and administrative (1)		16,291			16,808			16,198			12,739			15,796
Interest (2)		73,743			73,926			71,423			73,571			78,449
Depreciation and amortization		74,621			70,478			69,607			70,558			67,077
Losses from early extinguishments of debt (3)		—			722			11			208			31,457

Total expenses		284,696			281,523			272,471			274,591			308,025

Income before minority interests and income from unconsolidated joint ventures		90,432			82,172			91,470			84,906			49,886
Minority interest in property partnership		—			—			—			—			777
Income from unconsolidated joint ventures (4)		17,268			965			1,340			20,200			1,677

Income before minority interest in Operating Partnership		107,700			83,137			92,810			105,106			52,340
Minority interest in Operating Partnership (5)		(17,072	)		(11,164	)		(26,030	)		(18,404	)		(11,155	)

Income before gains on sales of real estate		90,628			71,973			66,780			86,702			41,185
Gains on sales of real estate, net of minority interest		—			619,206			1,183			17,889			581,302

Income before discontinued operations		90,628			691,179			67,963			104,591			622,487
Income from discontinued operations, net of minority interest		—			1,280			3,692			3,371			3,244
Gains on sales of real estate from discontinued operations, net of minority interest		11,716			161,848			—			—			—

Net income available to common shareholders	$	102,344		$	854,307		$	71,655		$	107,962		$	625,731


INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share—basic	$	0.86		$	7.14		$	0.61		$	0.93		$	5.33

Net income available to common shareholders per share—diluted	$	0.84		$	6.99		$	0.60		$	0.91		$	5.23

(1)	Interest and other includes $471 and $67, and General and administrative expenses includes $448 and $103 for the three months ended June 30, 2007 and March 31, 2007 related to the Company’s Deferred Compensation plan.

(2)	Interest expense is reported net of capitalized interest of $7,944, $4,308, $1,365, $1,560 and $1,304 for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.

(3)	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.

(4)	Includes our share of the gain on sale of Worldgate Plaza and 265 Franklin Street totaling approximately $15.5 million and $17.9 million for the three months ended June 30, 2007 and September 30, 2006, respectively.

(5)

Equals minority interest share of 14.62%, 14.90%, 15.18%, 15.62% and 15.68% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively. Certain prior period amounts have been reclassified to conform to current period presentation.

Boston Properties, Inc.

Second Quarter 2007

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Jun-07		31-Mar-07			31-Dec-06			30-Sep-06		30-Jun-06
Net income available to common shareholders	$	102,344	$	854,307		$	71,655		$	107,962	$	625,731
Add:
Minority interest in Operating Partnership		17,072		11,164			26,030			18,404		11,155
Less:
Minority interest in property partnership		—		—			—			—		777
Income from unconsolidated joint ventures		17,268		965			1,340			20,200		1,677
Gains on sales of real estate, net of minority interest		—		619,206			1,183			17,889		581,302
Income from discontinued operations, net of minority interest		—		1,280			3,692			3,371		3,244
Gains on sales of real estate from discontinued operations, net of minority interest		11,716		161,848			—			—		—

Income before minority interests and income from unconsolidated joint ventures		90,432		82,172			91,470			84,906		49,886
Add:
Real estate depreciation and amortization (1)		76,264		72,870			71,495			73,408		69,773
Income from discontinued operations		—		1,504			4,353			3,995		3,847
Income from unconsolidated joint ventures (2)		1,815		965			1,340			2,283		1,677
Less:
Minority property partnership’s share of funds from operations		—		—			—			—		211
Preferred distributions		1,084		1,202	(3)		1,431	(4)		1,912		2,965

Funds from operations (FFO)		167,427		156,309			167,227			162,680		122,007
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		167,427		156,309			167,227			162,680		153,451
Less:
Minority interest in Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate
		24,483		23,298			25,377			25,404		24,061

FFO available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (5)	$	142,944	$	133,011		$	141,850		$	137,276	$	129,390

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate—basic	$	1.20	$	1.13		$	1.21		$	1.19	$	1.14

FFO per share—basic	$	1.20	$	1.13		$	1.21		$	1.19	$	0.90

Weighted average shares outstanding—basic		118,961		118,177			116,895			115,432		113,994

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	$	1.10		$	1.18		$	1.16	$	1.10

FFO per share—basic	$	1.18	$	1.10		$	1.18		$	1.16	$	0.88

Weighted average shares outstanding—diluted		122,660		122,569			121,456			120,727		120,605

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $74,621, $70,478, $69,607, $70,558 and $67,077, our share of unconsolidated joint venture real estate depreciation and amortization of $2,085, $2,099, $2,250, $2,253 and $2,280 and depreciation and amortization from discontinued operations of $0, $608, $845, $990 and $835, less corporate related depreciation of $442, $315, $295, $393 and $419 and adjustment to asset retirement obligations of $0, $0, $912, $0 and $0 for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.

(2)	Excludes our share of the gain on sale of Worldgate Plaza and 265 Franklin Street totaling approximately $15.5 million and $17.9 million for the three months ended June 30, 2007 and September 30, 2006, respectively.

(3)	Excludes an adjustment of approximately ($3.1) million to the 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)	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.

(5)	Based on weighted average shares for the quarter. Company’s share for the quarter ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006 was 85.38%, 85.10%, 84.82%, 84.38% and 84.32%, respectively.

Boston Properties, Inc.

Second Quarter 2007

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	June 30, 2007			March 31, 2007				December 31, 2006				September 30, 2006			June 30, 2006
	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	$	167,427	139,336	$	156,309		138,877	$	167,227		137,808	$	162,680	136,793	$	153,451	135,192
Effect of Dilutive Securities
Convertible Preferred Units		1,084	1,676		1,202	(1)	1,922		1,431	(2)	2,266		1,912	2,999		2,965	4,430
Stock Options and Exchangeable Notes		—	2,023		—		2,469		—		2,295		—	2,296		—	2,182

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	168,511	143,035	$	157,511		143,268	$	168,658		142,369	$	164,592	142,088	$	156,416	141,804

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		24,004	20,375		22,757		20,699		24,775		20,913		24,745	21,361		23,383	21,199

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 (3)	$	144,507	122,660	$	134,754		122,569	$	143,883		121,456	$	139,847	120,727	$	133,033	120,605

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate—basic	$	1.20		$	1.13			$	1.21			$	1.19		$	1.14

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		$	1.10			$	1.18			$	1.16		$	1.10

(1)	Excludes an adjustment of approximately ($3.1) million to the 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)	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.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006 was 85.76%, 85.55%, 85.31%, 84.97% and 85.05%, respectively.

Boston Properties, Inc.

Second Quarter 2007

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
Basic FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (see page 9)	$	167,427		$	156,309		$	167,227		$	162,680		$	153,451
2nd generation tenant improvements and leasing commissions		(19,024	)		(12,732	)		(16,243	)		(23,372	)		(29,566	)
Straight-line rent		(8,492	)		(12,872	)		(15,942	)		(12,841	)		(11,723	)
Recurring capital expenditures		(6,676	)		(3,208	)		(10,174	)		(6,063	)		(5,275	)
Fair value interest adjustment		(451	)		(74	)		398			(231	)		(881	)
Fair value lease revenue (SFAS 141)		(1,491	)		(1,509	)		(1,395	)		(1,111	)		(492	)
Hotel improvements, equipment upgrades and replacements		(565	)		(281	)		(1,213	)		(505	)		(1,988	)
Non real estate depreciation		442			315			295			393			419
Stock-based compensation		3,058			3,214			2,099			1,950			1,982
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		117			—			1			19			4,380

Funds available for distribution to common shareholder and common unitholders (FAD)	$	134,345		$	129,162		$	125,053		$	120,919		$	110,307


*Interest Coverage Ratios* *(in thousands, except for ratio amounts)*


	Three Months Ended
	June 30, 2007			March 31, 2007			December 31, 2006			September 30, 2006			June 30, 2006
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	90,432		$	82,172		$	91,470		$	84,906		$	49,886
Interest expense		73,743			73,926			71,423			73,571			78,449
Losses from early extinguishments of debt associated with the sales of real estate		—			—			—			—			31,444
Depreciation and amortization expense		74,621			70,478			69,607			70,558			67,077
Depreciation from joint ventures		2,085			2,099			2,250			2,253			2,280
Income from unconsolidated joint ventures		1,815			965			1,340			2,283			1,677
Stock-based compensation		3,058			3,214			2,099			1,950			1,982
Discontinued operations—depreciation expense		—			608			845			990			835
Discontinued operations		—			1,504			4,353			3,995			3,847
Straight-line rent		(8,492	)		(12,872	)		(15,942	)		(12,841	)		(11,723	)
Fair value lease revenue (SFAS 141)		(1,491	)		(1,509	)		(1,395	)		(1,111	)		(492	)

Subtotal		235,771			220,585			226,050			226,554			225,262

Divided by:
Interest expense (1)		72,829			73,091			70,481			72,542			77,253
Interest Coverage Ratio		3.24			3.02			3.21			3.12			2.92


*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	90,432		$	82,172		$	91,470		$	84,906		$	49,886
Interest expense		73,743			73,926			71,423			73,571			78,449
Losses from early extinguishments of debt associated with the sales of real estate		—			—			—			—			31,444
Depreciation and amortization expense		74,621			70,478			69,607			70,558			67,077
Depreciation from joint ventures		2,085			2,099			2,250			2,253			2,280
Income from unconsolidated joint ventures		1,815			965			1,340			2,283			1,677
Stock-based compensation		3,058			3,214			2,099			1,950			1,982
Discontinued operations—depreciation expense		—			608			845			990			835
Discontinued operations		—			1,504			4,353			3,995			3,847
Straight-line rent		(8,492	)		(12,872	)		(15,942	)		(12,841	)		(11,723	)
Fair value lease revenue (SFAS 141)		(1,491	)		(1,509	)		(1,395	)		(1,111	)		(492	)

Subtotal		235,771			220,585			226,050			226,554			225,262

Divided by:
Interest expense (1) (2)		80,773			77,399			71,846			74,102			78,557

Interest Coverage Ratio		2.92			2.85			3.15			3.06			2.87

(1)	Excludes amortization of financing costs of $914, $835, $942, $1,029 and $1,196 for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.

(2)	Includes capitalized interest of $7,944, $4,308, $1,365, $1,560 and $1,304 for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.

Boston Properties, Inc.

Second Quarter 2007

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 June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.


	Three Months Ended
	30-Jun-07		31-Mar-07		31-Dec-06		30-Sep-06		30-Jun-06
Total Revenue (1)	$	48	$	9,174	$	14,732	$	12,963	$	12,438

Expenses:
Operating		48		284		248		418		499
Hotel operating		—		6,778		9,286		7,560		7,257
Depreciation and amortization		—		608		845		990		835

Total Expenses		48		7,670		10,379		8,968		8,591

Income before minority interest in Operating Partnership		—		1,504		4,353		3,995		3,847

Minority interest in Operating Partnership		—		224		661		624		603

Income from discontinued operations (net of minority interest)	$	—	$	1,280	$	3,692	$	3,371	$	3,244


Properties (2):		Newport Office Park		Newport Office Park Long Wharf Marriott		Newport Office Park Long Wharf Marriott		Newport Office Park Long Wharf Marriott		Newport Office Park Long Wharf Marriott

(1)	The impact of the straight-line rent adjustment increased (decreased) revenue by $0, $(5), $530, $352 and $(4) for the three months ended June 30, 2007, March 31, 2007, December 31, 2006, September 30, 2006 and June 30, 2006, respectively.

(2)	Discontinued operations does not include the operations of 5 Times Square and 280 Park Avenue due to the Company’s continuing involvement in the management, for a fee, of these properties subsequent to the sales through agreements with the buyers.

Boston Properties, Inc.

Second Quarter 2007

CAPITAL STRUCTURE

Debt

(in thousands)


													Aggregate Principal June 30, 2007
Mortgage Notes Payable													$	2,855,889
Unsecured Line of Credit														—
Unsecured Senior Notes, net of discount														1,471,691
Unsecured Exchangeable Senior Notes														1,292,022

Total Debt													$	5,619,602


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	$	1,217		$	220		$	277		$	1,595			3,309

Unsecured Senior Notes, net of discount	$	248,783		$	299,780		$	174,723		$	748,405		$	1,471,691


Boston Properties Limited Partnership Unsecured Exchangeable Senior Notes
Settlement Date		2/6/2007			4/6/2006
Principal Amount	$	862,500	(1)	$	450,000	(2)							$	1,312,500
Yield (on issue date)		3.438	%		3.750	%								3.545	%
Coupon		2.875	%		3.750	%
First Optional Redemption Date		2/20/2012			5/18/2013
Maturity Date		2/15/2037			5/15/2036
Discount		20,478			—									20,478

Unsecured Senior Exchangeable Notes	$	842,022		$	450,000								$	1,292,022

(1)	The initial exchange rate is equivalent to an initial exchange price of approximately $151.31 per share of Boston Properties, Inc.’s common stock.

(2)

The initial exchange rate was 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 6/30/07	Common Stock Equivalents		Equivalent (3)
Common Stock	119,028	119,028	(4)	$	12,156,330
Common Operating Partnership Units	20,962	20,962	(5)		2,140,849
Series Two Preferred Operating Partnership Units	1,277	1,676			171,170

Total Equity		141,666		$	14,468,349

Total Debt				$	5,619,602

Total Market Capitalization				$	20,087,951

(3)	Value based on June 30, 2007 closing price of $102.13 per share of common stock.

(4)	Includes 116 shares of restricted stock.

(5)	Includes 677 long-term incentive plan units.

Boston Properties, Inc.

Second Quarter 2007

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2007			2008			2009			2010			2011			Thereafter			Total
Floating Rate Debt	$	—		$	—		$	70,816		$	—		$	—		$	—		$	70,816
Fixed Rate Debt		24,232			799,802			186,573			132,869			545,153			3,860,150			5,548,779

Total Debt	$	24,232		$	799,802		$	257,389		$	132,869		$	545,153		$	3,860,150		$	5,619,595

Weighted Average Floating Rate Debt		—			—			6.63	%		—			—			—			6.63	%
Weighted Average Fixed Rate Debt		7.08	%		6.83	%		7.08	%		7.92	%		7.22	%		5.11	%		5.71	%

Total Weighted Average Rate		7.08	%		6.83	%		6.95	%		7.92	%		7.22	%		5.11	%		5.72	%

Unsecured Debt

Unsecured Line of Credit - Matures August 3, 2010

(in thousands)


Facility	Outstanding @6/30/2007		Letters of Credit		Remaining Capacity @6/30/2007
$605,000	$	—	$	21,567	$	583,433

Unsecured and Secured Debt Analysis



	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	49.18	%	4.83	%	5.8	years
Secured Debt	50.82	%	6.58	%	5.0	years

Total Debt	100.00	%	5.72	%	5.4	years


*Floating and Fixed Rate Debt Analysis*

	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	1.26	%	6.63	%	2.4	years
Fixed Rate Debt	98.74	%	5.71	%	5.4	years

Total Debt	100.00	%	5.72	%	5.4	years

Boston Properties, Inc.

Second Quarter 2007

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2007			2008			2009			2010			2011			Thereafter			Total
599 Lexington Avenue	$	—		$	—		$	—		$	—		$	—		$	750,000		$	750,000
Citigroup Center		4,183			8,816			9,453			10,136			456,898			—			489,486
Embarcadero Center One and Two		2,987			278,912			—			—			—			—			281,899
Prudential Center		2,832			259,706			—			—			—			—			262,538
Embarcadero Center Four		2,197			129,712			—			—			—			—			131,909
Democracy Center		1,232			2,597			91,132	(1)		—			—			—			94,961
One Freedom Square		1,075			2,245			2,375			2,513			2,660			66,093			76,961
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
202, 206 & 214 Carnegie Center		431			916			994			56,306			—			—			58,647
140 Kendrick Street		743			1,549			1,637			1,730			1,828			50,291			57,778
New Dominion Technology Park, Building One		704			1,481			1,594			1,715			1,846			47,403			54,743
1330 Connecticut Avenue		1,182			2,452			2,577			2,701			45,021			—			53,933
Reservoir Place		886			1,666			48,592			—			—			—			51,144
Kingstowne Two and Retail		780			1,417			1,499			1,585			1,676			36,837			43,794
504, 506 & 508 Carnegie Center		671			40,914			—			—			—			—			41,585
South of Market		—			—			70,816			—			—			—			70,816
10 & 20 Burlington Mall Rd & 91 Hartwell		440			925			994			1,069			32,524			—			35,952
10 Cambridge Center		396			844			916			29,677			—			—			31,833
Sumner Square		328			694			747			804			865			23,826			27,264
Montvale Center		—			—			—			—			—			25,000			25,000
Eight Cambridge Center		357			757			819			22,911			—			—			24,844
1301 New York Avenue		842			1,781			21,628			—			—			—			24,251
510 Carnegie Center		372			23,519			—			—			—			—			23,891
Reston Corporate Center		375			20,524			—			—						—			20,899
University Place		439			925			992			1,063			1,139			16,220			20,778
Kingstowne One		326			591			624			659			696			17,767			20,663
Bedford Business Park		454			16,859			—			—						—			17,313

		24,232			799,802			257,389			132,869			545,153			1,096,437			2,855,882

Unsecured Senior Notes		—			—			—			—			—			2,763,713			2,763,713
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	24,232		$	799,802		$	257,389		$	132,869		$	545,153		$	3,860,150		$	5,619,595

% of Total Debt		0.43	%		14.23	%		4.58	%		2.36	%		9.70	%		68.69	%		100.00	%
Balloon Payments	$	—		$	759,782		$	229,514		$	107,339		$	528,697		$	3,804,854		$	5,430,186
Scheduled Amortization	$	24,232		$	40,020		$	27,875		$	25,530		$	16,456		$	55,296		$	189,409

(1)	On July 3, 2007, the Company executed a binding agreement for the sale of this property.

Boston Properties, Inc.

Second Quarter 2007

Senior Unsecured Debt Covenant Compliance Ratios

(in thousands)

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

This section presents such ratios as of June 30, 2007 to show that the Company’s operating partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt securities. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.


		June 30, 2007
Total Assets:
Capitalized Property Value		$	11,098,101
Cash and Cash Equivalents			1,885,318
Undeveloped Land, at Cost			189,698
Development in Process, at Cost (including Joint Venture %)			670,809

Total Assets		$	13,843,926

Unencumbered Assets		$	8,437,506


Secured Debt (Fixed and Variable) (1)		$	2,836,212
Joint Venture Debt			226,161
Contingent Liabilities & Letters of Credit			26,993
Unsecured Debt (2)			2,787,500

Total Outstanding Debt		$	5,876,866


Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)		$	90,432
Add: Interest Expense (per Consolidated Income Statement)			73,743
Add: Depreciation and Amortization (per Consolidated Income Statement)			74,621
Add: Loss from early extinguishment of debt			—

EBITDA			238,796
Add: Company share of unconsolidated joint venture EBITDA			6,101

Consolidated EBITDA		$	244,897


Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)		$	73,743
Add: Company share of unconsolidated joint venture interest expense			3,151
Less: Amortization of financing costs			(914	)
Less: Interest expense funded by construction loan draws			—

Adjusted Interest Expense		$	75,980


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		42.5	%
Secured Debt/Total Assets	Less than 50%		22.1	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		3.22
Unencumbered Assets/ Unsecured Debt	Greater than 150%		302.7	%

Unencumbered Consolidated EBITDA		$	121,759

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			3.65

% of unencumbered Consolidated EBITDA to Consolidated EBITDA			49.7	%

# of unencumbered properties			81

(1)	Excludes Fair Value Adjustment of $20,905.

(2)	Excludes Debt Discount of $24,932.

Boston Properties, Inc.

Second Quarter 2007

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of June 30, 2007


	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)	$	6,206		$	35,460		$	251		$	249		$	11,116		$	22,778		$	7,031		$	9,853		$	92,944

Mortgage/Construction loans payable (5)	$	44,526		$	66,149		$	—		$	42,500		$	15,459		$	33,352		$	12,375		$	11,800		$	226,161

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


*Results of Operations* (unaudited and in thousands) for the three months ended June 30, 2007

	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	$	5,516		$	8,176		$	38		$	7,945		$	—		$	—		$	3,489		$	—		$	25,164	(6)

EXPENSES
Operating		2,045			2,726			(43	)		2,671			—			—			1,144			—			8,543

SUBTOTAL		3,471			5,450			81			5,274			—			—			2,345			—			16,621

Interest		1,727			2,672			—			2,231			—			—			1,470			—			8,100
Depreciation and amortization		1,182			1,818			—			1,478			—			—			760			—			5,238

SUBTOTAL		2,909			4,490			—			3,709			—			—			2,230			—			13,338

Gains on sale of real estate		—			—			15			—			—			—			32,777			—			32,792
Losses from early extinguishment of debt		—			—			—			—			—			—			(146	)		—			(146	)

NET INCOME/(LOSS)	$	562		$	960		$	96		$	1,565		$	—		$	—		$	32,746		$	—		$	35,929

BXP’s share of net income/(loss)	$	280		$	490		$	30		$	1,003	(7)	$	—		$	—		$	15,481	(7)	$	—		$	17,284
BXP’s share of gains on sale of real estate		—			—			—			—			—			—			(15,489	)		—			(15,489	)
BXP’s share of losses from early extinguishment of debt		—			—			—			—			—			—			36			—			36
BXP’s share of depreciation & amortization		591			927			—			376			—			—			190			—			2,084

BXP’s share of Funds from Operations (FFO)	$	871		$	1,417		$	30		$	1,379		$	—		$	—		$	218		$	—		$	3,915

(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. On June 1, 2007, the Value-Added Fund sold Worldgate Plaza.

(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 $1,089 and ($846), respectively, for the three months ended June 30, 2007.

(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.

Second Quarter 2007

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%)	$	499		$	1,061		$	1,152		$	63,437		$	—		$	—		$	66,149
Market Square North (50%)		551			1,167			1,260			41,548			—			—			44,526
901 New York Avenue (25%)		—			555			635			669			704			39,937			42,500
505 9th Street (50%)		—			—			—			—			—			33,352			33,352	(1)
Wisconsin Place (23.89%)		(45	)		1,395			13,014			—			—			—			14,364	(2)
New York Land Venture (50%)		—			11,800			—			—			—			—			11,800
Wisconsin Place Retail (5%)		—			—			—			1,095			—			—			1,095

	$	1,005		$	15,978		$	16,061		$	106,749		$	704		$	73,289		$	213,786

Weighted Average Rate (2)		7.95	%		7.54	%		6.97	%		7.99	%		5.19	%		5.57	%		7.04	%

% of Total Debt		0.47	%		7.47	%		7.51	%		49.93	%		0.33	%		34.28	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	17.91	%	6.99	%	1.0	years
Fixed Rate Debt	82.09	%	7.05	%	5.1	years

Total Debt	100.00	%	7.04	%	4.3	years

(*)	All amounts represent the Company’s share. Amounts exclude 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 $13.0 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 statistics at the bottom of this page do not include this purchase money mortgage.

Boston Properties, Inc.

Second Quarter 2007

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 Value-Added Fund had total equity commitments of $140 million. The investment period expired on October 25, 2006. The Company receives 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)
300 Billerica Road, Chelmsford, MA	1	110,882	100.0	%		7.36		1,875	(2)
Circle Star, San Carlos, CA	2	205,994	87.8	%		50.20		10,500	(3)

Total	3	316,876	92.1	%	$	33.91	$	12,375

Results of Operations

(unaudited and in thousands)

for the three months ended June 30, 2007


	Value-Added Fund
REVENUE
Total revenue (4)	$	3,489

EXPENSES
Operating		1,144

SUBTOTAL		2,345
Interest		1,470
Depreciation and amortization		760

SUBTOTAL		115
Gains on sale of real estate		32,777
Loss from early extinguishment of debt		(146	)

NET INCOME	$	32,746


Company’s share of net income	$	15,481	(5)
Company’s share of gains on sale of real estate		(15,489	)
Company’s share of losses from early extinguishment of debt		36
Company’s share of depreciation & amortization		190

Company’s share of Funds from Operations (FFO)	$	218

The Company’s Equity in the Value-Added Fund	$	7,031

(1)	Represents the Company’s share.

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

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

(4)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $63 and ($846), respectively for the three months ended June 30, 2007.

(5)	On June 1, 2007, The Value-Added Fund sold Worldgate Plaza. The gain reflects the allocation percentage pursuant to the achievement of specified investment return thresholds, as provided for in the Value-Added Fund agreement.

Boston Properties, Inc.

Second Quarter 2007

PORTFOLIO OVERVIEW

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

of Property for the Quarter Ended June 30, 2007 (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	7,970,479		22.6	%	833,332		2.2	%	8,803,811		28.8	%	1.3	%	26.1	%
Greater Washington	8,176,841	(5)	21.1	%	954,395		1.6	%	9,131,236	(5)	29.9	%	—		22.7	%
Greater San Francisco	4,764,251		13.9	%	—		—		4,764,251		15.6	%	—		13.9	%
Midtown Manhattan	5,515,919		33.4	%	—		—		5,515,919		18.1	%	—		33.4	%
Princeton/East Brunswick, NJ	2,320,191		3.9	%	—		—		2,320,191		7.6	%	—		3.9	%

	28,747,681		94.9	%	1,787,727		3.8	%	30,535,408		100.0	%	1.3	%	100.0	%

% of Total	94.1	%			5.9	%			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	%	6.5	%	26.1	%
Greater Washington	7.7	%	15.0	%	22.7	%
Greater San Francisco	11.2	%	2.7	%	13.9	%
Midtown Manhattan	33.4	%	—		33.4	%
Princeton/East Brunswick, NJ	—		3.9	%	3.9	%

Total	71.9	%	28.1	%	100.0	%

Hotel Properties


Hotel Properties	Number of Rooms	Square Feet
Cambridge Center Marriott, Cambridge, MA	431	330,400

Total Hotel Properties	431	330,400


*Structured Parking*

	Number of Spaces	Square Feet
Total Structured Parking	33,758	10,485,932

(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 available to common shareholders, see page 44. For disclosures relating to our use of NOI see page 51. NOI from unconsolidated joint ventures has been excluded from consolidated NOI.

(3)	Includes approximately 1,400,000 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.

Second Quarter 2007

In-Service Property Listing

as of June 30, 2007


		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	1,189,444	97.3	%	$	34.85	Y	CBD
	111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	859,053	100.0	%		52.82	N	CBD
	101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,939	100.0	%		37.24	Y	CBD
	The Shops at the Prudential Center	CBD Boston MA	1	500,919	96.3	%		67.04	Y (1)	CBD
	Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		50.56	N	CBD
	One Cambridge Center	East Cambridge MA	1	215,385	90.4	%		36.81	N	CBD
	Three Cambridge Center	East Cambridge MA	1	108,152	100.0	%		28.69	N	CBD
(2)	Four Cambridge Center	East Cambridge MA	1	198,295	85.7	%		37.94	N	CBD
(2)	Five Cambridge Center	East Cambridge MA	1	237,752	69.3	%		33.29	N	CBD
	Eight Cambridge Center	East Cambridge MA	1	177,226	100.0	%		35.32	Y	CBD
	Ten Cambridge Center	East Cambridge MA	1	152,664	100.0	%		40.08	Y	CBD
	Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		44.07	N	CBD
	University Place	Mid-Cambridge MA	1	195,282	100.0	%		38.45	Y	CBD
	Reservoir Place	Route 128 Mass Turnpike MA	1	526,918	89.9	%		30.30	Y	S
	Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	100.0	%		27.25	N	S
	140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.49	Y	S
	230 CityPoint (formerly Prospect Place)	Route 128 Mass Turnpike MA	1	297,695	68.9	%		30.47	N	S
(3)	Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	87.0	%		25.69	N	S
	195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		51.13	N	S
	200 West Street	Route 128 Mass Turnpike MA	1	248,311	96.2	%		33.19	N	S
	Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	98.1	%		34.41	N	S
	10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,280	90.7	%		22.38	Y	S
	Bedford Business Park	Route 128 Northwest MA	1	92,207	15.9	%		22.68	Y	S
	32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		30.10	N	S
	91 Hartwell Avenue	Route 128 Northwest MA	1	121,425	88.3	%		24.42	Y	S
	92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		53.35	N	S
	100 Hayden Avenue	Route 128 Northwest MA	1	55,924	0.0	%		—	N	S
	33 Hayden Avenue	Route 128 Northwest MA	1	80,128	100.0	%		30.32	N	S
	Lexington Office Park	Route 128 Northwest MA	2	166,689	95.2	%		24.43	N	S
	191 Spring Street	Route 128 Northwest MA	1	158,900	100.0	%		30.89	N	S
	181 Spring Street	Route 128 Northwest MA	1	55,793	100.0	%		32.96	N	S
	201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		36.26	N	S
	40 Shattuck Road	Route 128 Northwest MA	1	120,000	95.6	%		27.02	N	S
	Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		22.00	N	S

			41	7,970,479	93.4	%	$	37.48


Office/Technical
	Seven Cambridge Center	East Cambridge MA	1	231,028	100.0	%		91.29	N	CBD
	Fourteen Cambridge Center	East Cambridge MA	1	67,362	100.0	%		22.28	N	CBD
(2) (3)	103 Fourth Avenue	Route 128 Mass Turnpike MA	1	62,476	58.5	%		19.78	N	S
	Bedford Business Park	Route 128 Northwest MA	2	378,326	34.6	%		18.41	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	%		12.72	N	S

			7	833,332	67.2	%	$	48.20

		Total Greater Boston:	48	8,803,811	90.9	%	$	38.23

Boston Properties, Inc.

Second Quarter 2007

In-Service Property Listing (continued)

as of June 30, 2007


		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	614,481	89.0	%	$	43.08	N	CBD
	500 E Street, S. W.	Southwest Washington DC	1	246,057	100.0	%		35.35	N	CBD
	Metropolitan Square (51% ownership)	East End Washington DC	1	586,478	100.0	%		47.10	Y	CBD
	1301 New York Avenue	East End Washington DC	1	188,358	100.0	%		31.04	Y	CBD
	Market Square North (50% ownership)	East End Washington DC	1	401,279	100.0	%		53.90	Y	CBD
	901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	99.4	%		53.62	Y	CBD
	1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		45.87	N	CBD
	1330 Connecticut Avenue	CBD Washington DC	1	252,136	99.6	%		51.89	Y	CBD
	Sumner Square	CBD Washington DC	1	208,665	99.8	%		42.62	Y	CBD
	Democracy Center	Montgomery County MD	3	685,028	83.9	%		32.36	Y	S
	Montvale Center	Montgomery County MD	1	122,881	85.1	%		25.47	Y	S
	2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		39.92	N	S
	Orbital Sciences 1,2&3	Loudoun County	3	337,228	100.0	%		26.09	N	S
(2)	Kingstowne One	Fairfax County VA	1	150,838	100.0	%		31.18	Y	S
(2)	Kingstowne Two	Fairfax County VA	1	156,251	91.8	%		32.09	Y	S
(2)	Kingstowne Retail	Fairfax County VA	1	88,288	94.3	%		29.93	Y	S
	One Freedom Square	Fairfax County VA	1	414,207	100.0	%		37.81	Y	S
	Two Freedom Square	Fairfax County VA	1	421,676	100.0	%		39.69	N	S
	One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		27.37	N	S
	Two Reston Overlook	Fairfax County VA	1	134,615	100.0	%		29.28	N	S
	One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		41.43	N	S
	New Dominion Technology Park - Building One	Fairfax County VA	1	235,201	100.0	%		32.09	Y	S
	New Dominion Technology Park - Building Two	Fairfax County VA	1	257,400	100.0	%		41.34	Y	S
	Reston Corporate Center	Fairfax County VA	2	261,046	100.0	%		32.01	Y	S
	12290 Sunrise Valley	Fairfax County VA	1	182,424	100.0	%		34.99	N	S
	12300 Sunrise Valley	Fairfax County VA	1	255,244	100.0	%		33.75	N	S
	12310 Sunrise Valley	Fairfax County VA	1	263,870	100.0	%		33.92	N	S

			33	8,176,841	97.3	%	$	39.21

Office/Technical
	Broad Run Business Park	Loudoun County	1	127,070	100.0	%		20.17	N	S
(2)(3)	6601 Springfield Center Drive	Fairfax County VA	1	26,388	100.0	%		12.02	N	S
(2)(3)	6605 Springfield Center Drive	Fairfax County VA	1	71,000	100.0	%		9.80	N	S
	7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		19.24	N	S
	7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		21.83	N	S
	7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		19.47	N	S
	7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		16.17	N	S
	8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		17.33	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	%		19.85	N	S
	8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		16.38	N	S
	7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		25.35	N	S

			14	954,395	100.0	%	$	17.79

		Total Greater Washington:	47	9,131,236	97.6	%	$	36.92

Boston Properties, Inc.

Second Quarter 2007

In-Service Property Listing (continued)

as of June 30, 2007


		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	97.8	%	$	68.11	Y	CBD
	Citigroup Center	Park Avenue NY	1	1,561,277	99.9	%		71.45	Y	CBD
	399 Park Avenue	Park Avenue NY	1	1,697,564	99.8	%		80.20	N	CBD
	Times Square Tower	Times Square NY	1	1,238,787	100.0	%		64.00	N	CBD

		Total Midtown Manhattan:	4	5,515,919	99.5	%	$	71.86


Princeton/East Brunswick, NJ
Office
	101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	27.34	N	S
	104 Carnegie Center	Princeton NJ	1	102,827	94.4	%		33.27	N	S
	105 Carnegie Center	Princeton NJ	1	70,029	46.9	%		23.93	N	S
	201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		28.39	N	S
	202 Carnegie Center	Princeton NJ	1	128,705	93.0	%		32.11	Y	S
	206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		30.66	Y	S
	210 Carnegie Center	Princeton NJ	1	161,776	63.2	%		32.85	N	S
	211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		30.59	N	S
	212 Carnegie Center	Princeton NJ	1	149,398	97.3	%		35.61	N	S
	214 Carnegie Center	Princeton NJ	1	150,774	72.7	%		30.11	Y	S
	302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		36.29	N	S
	502 Carnegie Center	Princeton NJ	1	116,855	94.7	%		34.65	N	S
	504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		30.81	Y	S
	506 Carnegie Center	Princeton NJ	1	136,213	100.0	%		35.77	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	%		25.80	Y	S
	One Tower Center	East Brunswick NJ	1	412,706	64.8	%		36.97	N	S

		Total Princeton/East Brunswick, NJ:	16	2,320,191	86.7	%	$	31.97


Greater San Francisco
Office
	Embarcadero Center One	CBD San Francisco CA	1	823,389	84.8	%	$	46.98	Y	CBD
	Embarcadero Center Two	CBD San Francisco CA	1	772,990	81.1	%		48.83	Y	CBD
	Embarcadero Center Three	CBD San Francisco CA	1	767,655	93.6	%		41.66	N	CBD
	Embarcadero Center Four	CBD San Francisco CA	1	936,428	87.3	%		59.30	Y	CBD
	611 Gateway	South San Francisco CA	1	256,302	100.0	%		33.32	N	S
	601 and 651 Gateway	South San Francisco CA	2	506,050	92.1	%		29.50	N	S
(2)	303 Almaden	San Jose, CA	1	157,537	93.3	%	$	31.84	N	CBD
(2)	3200 Zanker Road	San Jose, CA	4	543,900	100.0	%	$	14.10	N	S

		Total Greater San Francisco:	12	4,764,251	89.7	%	$	41.28

		Total In-Service Properties:	127	30,535,408	94.0	%	$	44.27

(1)	93,181 square feet of space is unencumbered.

(2)	Not included in same property analysis.

(3)	Property positioned for future redevelopment.

Boston Properties, Inc.

Second Quarter 2007

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION


*TOP 20 TENANTS BY SQUARE FEET LEASED*						TENANT DIVERSIFICATION (GROSS RENT)*
	Tenant	Sq. Ft.		% of Portfolio
1	US Government	1,624,697	(1)	5.32	%
2	Lockheed Martin	1,294,292		4.24	%
3	Citibank NA	1,142,009		3.74	%
4	Genentech	553,799		1.81	%
5	Shearman & Sterling	517,658		1.70	%
6	Gillette	484,051		1.59	%
7	Kirkland & Ellis	473,161	(2)	1.55	%
8	Lehman Brothers	436,723		1.43	%
9	Parametric Technology	380,987		1.25	%
10	Accenture	378,867		1.24	%
11	Washington Group International	365,245		1.20	%
12	Finnegan Henderson Farabow	349,146	(3)	1.14	%
13	Ann Taylor	338,942		1.11	%
14	Orbital Sciences	337,228		1.10	%
15	Northrop Grumman	327,677		1.07	%
16	Biogen Idec	301,502		0.99	%
17	Bingham McCutchen	291,415		0.95	%
18	Akin Gump Strauss Hauer & Feld	290,132		0.95	%
19	MIT	288,720		0.95	%
20	O’Melveny & Myers	268,733		0.88	%
	Total % of Portfolio Square Feet			34.21	%
	Total % of Portfolio Revenue			37.13	%

*Major Future Signed Deals—Development Properties*
	Tenant	Property		Sq. Ft.
	DLA Piper 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.						* 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.

Second Quarter 2007

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	544,095		$	18,988,324		$	34.90		$	19,008,099		$	34.94		1.98	%
2008	1,498,621			61,135,643			40.79			61,484,713			41.03		5.46	%
2009	2,755,990			104,631,087			37.96			108,548,096			39.39		10.04	%
2010	2,507,714			94,405,947			37.65			98,134,258			39.13		9.14	%
2011	2,816,745			122,559,038			43.51			129,634,618			46.02		10.26	%
2012	2,382,266			99,159,990			41.62			107,491,023			45.12		8.68	%
2013	659,428			27,309,955			41.41			33,318,694			50.53		2.40	%
2014	2,067,151			76,573,958			37.04			84,032,289			40.65		7.53	%
2015	1,586,438			59,789,886			37.69			68,654,143			43.28		5.78	%
2016	2,540,658			140,073,529			55.13			153,891,637			60.57		9.26	%
Thereafter	6,276,329			343,358,223			54.71			410,850,465			65.46		22.87	%

*Occupancy By Location**
	CBD					Suburban						Total
Location	30-Jun-07		30-Jun-06			30-Jun-07			30-Jun-06			30-Jun-07			30-Jun-06
Midtown Manhattan	99.5	%		99.7	%		n/a			n/a			99.5	%	99.7	%
Greater Boston	96.1	%		93.2	%		89.9	%		91.3	%		93.4	%	92.3	%
Greater Washington	97.8	%		98.2	%		97.0	%		95.8	%		97.3	%	96.8	%
Greater San Francisco	87.0	%		87.8	%		97.0	%		91.8	%		89.7	%	88.6	%
Princeton/East Brunswick, NJ	n/a			n/a			86.7	%		86.5	%		86.7	%	86.5	%

Total Portfolio	95.7	%		95.5	%		92.9	%		92.1	%		94.5	%	94.2	%

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

Boston Properties, Inc.

Second Quarter 2007

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	175,948		$	2,906,765		$	16.52		$	2,906,765		$	16.52		9.84	%
2008	70,440			1,433,204			20.35			1,447,600			20.55		3.94	%
2009	78,908			1,614,132			20.46			1,672,657			21.20		4.41	%
2010	183,376			3,020,833			16.47			3,281,684			17.90		10.26	%
2011	57,321			926,736			16.17			926,736			16.17		3.21	%
2012	124,412			2,675,970			21.51			2,842,535			22.85		6.96	%
2013	80,000			1,468,481			18.36			1,548,481			19.36		4.47	%
2014	292,037			5,412,431			18.53			5,989,011			20.51		16.34	%
2015	—			—			—			—			—		0.00	%
2016	257,755			21,184,170			82.19			21,617,112			83.87		14.42	%
Thereafter	75,756			1,812,876			23.93			2,175,357			28.72		4.24	%

*Occupancy By Location*
	CBD					Suburban						Total
Location	30-Jun-07		30-Jun-06			30-Jun-07			30-Jun-06			30-Jun-07			30-Jun-06
Midtown Manhattan	n/a			n/a			n/a			n/a			n/a		n/a
Greater Boston	100.0	%		100.0	%		48.9	%		100.0	%		67.2	%	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	%		81.6	%		97.5	%		84.7	%	97.9	%

Boston Properties, Inc.

Second Quarter 2007

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	22,611	$	1,978,321	$	87.49	(1)	$	2,094,781	$	92.64	(1)	1.70	%
2008	73,913	$	5,166,481		69.90	(2)	$	5,136,447		69.49	(2)	5.55	%
2009	62,915	$	3,313,189		52.66		$	3,333,401		52.98		4.73	%
2010	94,808	$	3,584,654		37.81		$	3,667,274		38.68		7.13	%
2011	65,807	$	4,282,714		65.08		$	4,668,528		70.94		4.95	%
2012	112,892	$	6,001,344		53.16		$	6,422,229		56.89		8.48	%
2013	55,025	$	4,749,208		86.31		$	5,066,428		92.08		4.14	%
2014	60,388	$	4,615,611		76.43		$	5,161,698		85.48		4.54	%
2015	99,278	$	8,708,880		87.72		$	9,114,882		91.81		7.46	%
2016	99,451	$	6,780,910		68.18		$	7,527,054		75.69		7.47	%
Thereafter	583,480	$	28,382,888		48.64		$	34,838,787		59.71		43.85	%

(1)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $45.28 and $45.28 in 2007.

(2)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $61.78 and $61.78 in 2008.

Boston Properties, Inc.

Second Quarter 2007

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	742,654	$	23,873,411	$	32.15	$	24,009,645	$	32.33	2.4	%
2008	1,642,974		67,735,328		41.23		68,068,761		41.43	5.4	%
2009	2,897,813		109,558,408		37.81		113,554,154		39.19	9.5	%
2010	2,785,898		101,011,434		36.26		105,083,216		37.72	9.1	%
2011	2,939,873		127,768,488		43.46		135,229,882		46.00	9.6	%
2012	2,619,570		107,837,304		41.17		116,755,787		44.57	8.6	%
2013	794,453		33,527,644		42.20		39,933,603		50.27	2.6	%
2014	2,419,576		86,601,999		35.79		95,182,998		39.34	7.9	%
2015	1,685,716		68,498,766		40.63		77,769,025		46.13	5.5	%
2016	2,897,864		168,038,609		57.99		183,035,803		63.16	9.5	%
Thereafter	6,935,565		373,553,986		53.86		447,864,608		64.58	22.7	%

Occupancy By Location


	CBD				Suburban				Total
Location	30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06
Midtown Manhattan	99.5	%	99.7	%	n/a		n/a		99.5	%	99.7	%
Greater Boston	96.4	%	93.6	%	84.5	%	92.3	%	90.9	%	93.0	%
Greater Washington	97.8	%	98.2	%	97.5	%	95.9	%	97.6	%	96.7	%
Greater San Francisco	87.0	%	87.8	%	97.0	%	91.8	%	89.7	%	88.6	%
Princeton/East Brunswick, NJ	n/a		n/a		86.7	%	86.5	%	86.7	%	86.5	%

Total Portfolio	95.8	%	95.6	%	91.7	%	92.7	%	94.0	%	94.4	%

Boston Properties, Inc.

Second Quarter 2007

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	98,329	$	3,012,714	$	30.64	$	3,012,714	$	30.64		144,140	$	2,201,269	$	15.27	$	2,201,269	$	15.27
2008	751,202		23,209,516		30.90		23,323,618		31.05		—		—		—		—		—
2009	1,492,223		53,168,451		35.63		56,363,184		37.77		—		—		—		—		—
2010	480,180		15,017,258		31.27		15,572,277		32.43		36,528		722,517		19.78		905,157		24.78
2011	1,227,001		51,179,942		41.71		54,015,152		44.02		—		—		—		—		—
2012	951,541		35,367,696		37.17		37,103,837		38.99		72,362		1,685,980		23.30		1,852,545		25.60
2013	211,559		9,488,613		44.85		10,612,543		50.16		80,000		1,468,481		18.36		1,548,481		19.36
2014	571,582		22,305,429		39.02		23,615,326		41.32		—		—		—		—		—
2015	246,454		9,160,934		37.17		10,057,971		40.81		—		—		—		—		—
2016	215,172		6,729,471		31.27		7,276,999		33.82		225,532		20,673,005		91.66		20,972,963		92.99
Thereafter	362,968		14,289,467		39.37		18,359,910		50.58		—		—		—		—		—

	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	243	$	1,001,812	$	4,122.68	$	1,118,272	$	4,601.94	(1)	242,712	$	6,215,795	$	25.61	$	6,332,255	$	26.09
2008	9,857		1,757,915		178.34		1,708,691		173.35	(2)	761,059		24,967,431		32.81		25,032,309		32.89
2009	9,543		1,092,633		114.50		1,096,641		114.92		1,501,766		54,261,084		36.13		57,459,824		38.26
2010	43,554		1,041,093		23.90		1,051,925		24.15		560,262		16,780,868		29.95		17,529,359		31.29
2011	12,999		1,218,406		93.73		1,368,256		105.26		1,240,000		52,398,347		42.26		55,383,408		44.66
2012	63,676		2,628,779		41.28		2,702,312		42.44		1,087,579		39,682,455		36.49		41,658,694		38.30
2013	27,848		3,244,777		116.52		3,387,849		121.66		319,407		14,201,871		44.46		15,548,873		48.68
2014	19,902		2,266,387		113.88		2,413,402		121.26		591,484		24,571,816		41.54		26,028,728		44.01
2015	43,651		6,114,153		140.07		6,407,166		146.78		290,105		15,275,086		52.65		16,465,137		56.76
2016	14,617		1,759,829		120.40		1,896,567		129.75		455,321		29,162,306		64.05		30,146,529		66.21
Thereafter	407,133		15,308,015		37.60		17,388,451		42.71		770,101		29,597,481		38.43		35,748,362		46.42

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $51.44 and $51.44 in 2007.

(2)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $117.52 and $117.52 in 2008.

Boston Properties, Inc.

Second Quarter 2007

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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	38,828		1,050,103		27.05		1,050,103		27.05	144,140		2,201,269		15.27		2,201,269		15.27
Q4 2007	59,501		1,962,610		32.98		1,962,610		32.98	—		—		—		—		—

Total 2007	98,329	$	3,012,714	$	30.64	$	3,012,714	$	30.64	144,140		2,201,269		15.27		2,201,269		15.27

Q1 2008	234,055	$	6,707,971	$	28.66	$	6,690,612	$	28.59	—	$	—	$	—	$	—	$	—
Q2 2008	278,819		9,014,157		32.33		9,069,695		32.53	—		—		—		—		—
Q3 2008	123,998		3,421,162		27.59		3,472,172		28.00	—		—		—		—		—
Q4 2008	114,330		4,066,227		35.57		4,091,139		35.78	—		—		—		—		—

Total 2008	751,202	$	23,209,516	$	30.90	$	23,323,618	$	31.05	—		—		—		—		—


	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
Q1 2007	—	$	—	$	—	$	—	$	—		—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—		—		—		—		—		—
Q3 2007	10		560,685		56,068.50		560,685		56,068.50		182,978		3,812,058		20.83		3,812,058		20.83
Q4 2007	233		441,127		1,893.25		557,587		2,393.08		59,734		2,403,738		40.24		2,520,198		42.19

Total 2007	243		1,001,812	$	4,122.68	$	1,118,272	$	4,601.94	(1)	242,712	$	6,215,795	$	25.61	$	6,332,255	$	26.09

Q1 2008	2,692	$	570,146.76	$	211.79		492,387	$	182.91		236,747	$	7,278,117	$	30.74	$	7,182,999	$	30.34
Q2 2008	1,695		367,067		216.56		350,267		206.65		280,514		9,381,224		33.44		9,419,962		33.58
Q3 2008	—		—		—		—		—		123,998		3,421,162		27.59		3,472,172		28.00
Q4 2008	5,470		820,701		150.04		866,037		158.32		119,800		4,886,928		40.79		4,957,176		41.38

Total 2008	9,857	$	1,757,915	$	178.34	$	1,708,691	$	173.35	(2)	761,059	$	24,967,431	$	32.81	$	25,032,309	$	32.89

(1)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $51.44 and $51.44 in 2007.

(2)	Excluding kiosks with one square feet at the Prudential Center, current and future expiring rents would be $117.52 and $117.52 in 2008.

Boston Properties, Inc.

Second Quarter 2007

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	55,810	$	1,878,686	$	33.66	$	1,878,686	$	33.66	31,808	$	705,496	$	22.18	$	705,496	$	22.18
2008	150,116		5,090,696		33.91		5,158,269		34.36	70,440		1,433,204		20.35		1,447,600		20.55
2009	768,034		27,888,859		36.31		28,403,522		36.98	78,908		1,614,132		20.46		1,672,657		21.20
2010	871,728		36,074,621		41.38		37,813,714		43.38	146,848		2,298,316		15.65		2,376,527		16.18
2011	861,914		31,157,883		36.15		34,132,579		39.60	57,321		926,736		16.17		926,736		16.17
2012	1,015,199		38,942,000		38.36		42,851,915		42.21	52,050		989,990		19.02		989,990		19.02
2013	90,526		2,866,428		31.66		3,158,864		34.89	—		—		—		—		—
2014	459,116		19,434,746		42.33		22,593,493		49.21	292,037		5,412,431		18.53		5,989,011		20.51
2015	784,442		30,564,296		38.96		35,798,274		45.64	—		—		—		—		—
2016	418,624		12,807,562		30.59		15,905,253		37.99	32,223		511,165		15.86		644,149		19.99
Thereafter	2,229,682		98,335,584		44.10		122,266,530		54.84	75,756		1,812,876		23.93		2,175,357		28.72


	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	4,664	6,704	1.44	6,704	1.44	92,282	$	2,590,887	$	28.08	$	2,590,887	$	28.08
2008	18,152	809,070	44.57	819,587	45.15	238,708		7,332,969		30.72		7,425,456		31.11
2009	22,687	799,320	35.23	813,595	35.86	869,629		30,302,311		34.85		30,889,774		35.52
2010	13,587	602,558	44.35	638,822	47.02	1,032,163		38,975,495		37.76		40,829,062		39.56
2011	18,533	853,344	46.04	872,954	47.10	937,768		32,937,963		35.12		35,932,269		38.32
2012	12,736	463,678	36.41	544,463	42.75	1,079,985		40,395,668		37.40		44,386,368		41.10
2013	13,377	661,157	49.42	750,243	56.08	103,903		3,527,585		33.95		3,909,107		37.62
2014	20,753	613,406	29.56	701,030	33.78	771,906		25,460,583		32.98		29,283,535		37.94
2015	24,704	1,065,216	43.12	994,090	40.24	809,146		31,629,512		39.09		36,792,364		45.47
2016	25,576	1,179,897	46.13	1,335,627	52.22	476,423		14,498,623		30.43		17,885,029		37.54
Thereafter	97,527	2,901,157	29.75	3,894,056	39.93	2,402,965		103,049,617		42.88		128,335,943		53.41

Boston Properties, Inc.

Second Quarter 2007


*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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	31,685		951,853		30.04		951,853		30.04	13,408		266,032		19.84		266,032		19.84
Q4 2007	24,125		926,833		38.42		926,833		38.42	18,400		439,464		23.88		439,464		23.88

Total 2007	55,810	$	1,878,686	$	33.66	$	1,878,686	$	33.66	31,808	$	705,496	$	22.18	$	705,496	$	22.18


Q1 2008	11,082	$	381,240	$	34.40	$	381,240	$	34.40	—	$	—	$	—	$	—	$	—
Q2 2008	58,532		2,280,007		38.95		2,283,712		39.02	23,439		407,287		17.38		407,287		17.38
Q3 2008	54,330		1,535,693		28.27		1,578,783		29.06	—		—		—		—		—
Q4 2008	26,172		893,755		34.15		914,534		34.94	47,001		1,025,917		21.83		1,040,313		22.13

Total 2008	150,116	$	5,090,696	$	33.91	$	5,158,269	$	34.36	70,440	$	1,433,204	$	20.35	$	1,447,600	$	20.55


	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	4,664		6,704		1.44		6,704		1.44	49,757		1,224,589		24.61		1,224,589		24.61
Q4 2007	—		—		—		—		—	42,525		1,366,298		32.13		1,366,298		32.13

Total 2007	4,664	$	6,704	$	1.44		6,704	$	1.44	92,282	$	2,590,887	$	28.08		2,590,887	$	28.08


Q1 2008	—	$	—	$	—	$	—	$	—	11,082	$	381,240	$	34.40	$	381,240	$	34.40
Q2 2008	—		—		—		—		—	81,971		2,687,294		32.78		2,690,999		32.83
Q3 2008	18,152		809,070		44.57		819,587		45.15	72,482		2,344,763		32.35		2,398,370		33.09
Q4 2008	—		—		—		—		—	73,173		1,919,672		26.23		1,954,847		26.72

Total 2008	18,152	$	809,070	$	44.57	$	819,587	$	45.15	238,708	$	7,332,969	$	30.72	$	7,425,456	$	31.11

Boston Properties, Inc.

Second Quarter 2007

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	103,295	$	4,216,912	$	40.82	$	4,236,687	$	41.02	—	$	—	$	—	$	—	$	—
2008	269,193		10,458,852		38.85		10,496,209		38.99	—		—		—		—		—
2009	162,927		7,560,385		46.40		7,629,115		46.83	—		—		—		—		—
2010	775,342		20,635,326		26.61		21,731,092		28.03	—		—		—		—		—
2011	283,292		21,980,590		77.59		22,433,035		79.19	—		—		—		—		—
2012	190,398		9,083,479		47.71		9,849,510		51.73	—		—		—		—		—
2013	156,599		6,380,331		40.74		7,342,160		46.89	—		—		—		—		—
2014	435,239		16,792,929		38.58		18,099,252		41.58	—		—		—		—		—
2015	335,528		11,422,650		34.04		13,234,220		39.44	—		—		—		—		—
2016	861,109		34,748,575		40.35		37,877,779		43.99	—		—		—		—		—
Thereafter	425,542		19,347,154		45.46		21,074,868		49.52	—		—		—		—		—

	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	17,704	$	953,005	$	53.83	$	953,005	$	53.83	120,999	$	5,169,917	$	42.73	$	5,189,692	$	42.89
2008	35,796		1,876,925		52.43		1,881,821		52.57	304,989		12,335,777		40.45		12,378,030		40.59
2009	30,685		1,421,237		46.32		1,423,165		46.38	193,612		8,981,622		46.39		9,052,280		46.75
2010	37,667		1,941,003		51.53		1,976,527		52.47	813,009		22,576,328		27.77		23,707,619		29.16
2011	19,725		797,914		40.45		900,276		45.64	303,017		22,778,504		75.17		23,333,311		77.00
2012	30,430		2,181,194		71.68		2,312,388		75.99	220,828		11,264,672		51.01		12,161,898		55.07
2013	13,800		843,273		61.11		928,336		67.27	170,399		7,223,605		42.39		8,270,496		48.54
2014	8,365		546,986		65.39		603,099		72.10	443,604		17,339,916		39.09		18,702,351		42.16
2015	30,923		1,529,511		49.46		1,713,626		55.42	366,451		12,952,161		35.34		14,947,846		40.79
2016	7,887		449,718		57.02		498,072		63.15	868,996		35,198,294		40.50		38,375,852		44.16
Thereafter	2,528		228,619		90.43		189,315		74.89	428,070		19,575,773		45.73		21,264,183		49.67

Boston Properties, Inc.

Second Quarter 2007

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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	57,383		2,461,576		42.90		2,481,351		43.24	—		—		—		—		—
Q4 2007	45,912		1,755,336		38.23		1,755,336		38.23	—		—		—		—		—

Total 2007	103,295	$	4,216,912	$	40.82	$	4,236,687	$	41.02	—		—		—		—		—

Q1 2008	156,470	$	6,259,698	$	40.01	$	6,259,698	$	40.01	—	$	—	$	—	$	—	$	—
Q2 2008	22,181		890,626		40.15		900,637		40.60	—		—		—		—		—
Q3 2008	53,462		1,986,002		37.15		2,003,254		37.47	—		—		—		—		—
Q4 2008	37,080		1,322,526		35.67		1,332,620		35.94	—		—		—		—		—

Total 2008	269,193	$	10,458,852	$	38.85	$	10,496,209	$	38.99	—		—		—		—		—


	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	10,288		707,470		68.77		707,470		68.77	67,671		3,169,046		46.83		3,188,821		47.12
Q4 2007	7,416		245,535		33.11		245,535		33.11	53,328		2,000,871		37.52		2,000,871		37.52

Total 2007	17,704	$	953,005	$	53.83	$	953,005	$	53.83	120,999	$	5,169,917	$	42.73	$	5,189,692	$	42.89

Q1 2008	7,597	$	323,690	$	42.61	$	323,690	$	42.61	164,067	$	6,583,388	$	40.13	$	6,583,388		40.13
Q2 2008	1,242		130,314		104.92		130,314		104.92	23,423		1,020,941		43.59		1,030,952		44.01
Q3 2008	13,152		752,464		57.21		752,464		57.21	66,614		2,738,465		41.11		2,755,718		41.37
Q4 2008	13,805		670,457		48.57		675,353		48.92	50,885		1,992,983		39.17		2,007,972		39.46

Total 2008	35,796		1,876,925		52.43		1,881,821		52.57	304,989	$	12,335,777	$	40.45	$	12,378,030	$	40.59

Boston Properties, Inc.

Second Quarter 2007


*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	6,937	$	425,412	$	61.33	$	425,412	$	61.33	—	$	—	$	—	$	—	$	—
2008	314,279		21,916,907		69.74		22,046,946		70.15	—		—		—		—		—
2009	112,248		8,130,079		72.43		8,189,046		72.95	—		—		—		—		—
2010	258,452		18,264,046		70.67		18,565,269		71.83	—		—		—		—		—
2011	92,271		6,434,171		69.73		6,774,099		73.42	—		—		—		—		—
2012	169,943		14,371,340		84.57		15,841,683		93.22	—		—		—		—		—
2013	56,636		4,074,278		71.94		7,264,802		128.27	—		—		—		—		—
2014	4,172		242,810		58.20		287,451		68.90	—		—		—		—		—
2015	65,862		4,285,618		65.07		4,603,422		69.89	—		—		—		—		—
2016	1,045,753		85,787,920		82.03		92,831,606		88.77	—		—		—		—		—
Thereafter	3,188,786		209,088,726		65.57		246,528,621		77.31	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2007	—	$	16,800	$	—	$	16,800	$	—	6,937	$	442,212	$	63.75	$	442,212	$	63.75
2008	10,108		722,571		71.49		726,348		71.86	324,387		22,639,479		69.79		22,773,294		70.20
2009	—		—		—		—		—	112,248		8,130,079		72.43		8,189,046		72.95
2010	—		—		—		—		—	258,452		18,264,046		70.67		18,565,269		71.83
2011	14,550		1,413,050		97.12		1,527,043		104.95	106,821		7,847,221		73.46		8,301,141		77.71
2012	6,050		727,693		120.28		863,065		142.66	175,993		15,099,033		85.79		16,704,748		94.92
2013	—		—		—		—		—	56,636		4,074,278		71.94		7,264,802		128.27
2014	11,368		1,188,831		104.58		1,444,167		127.04	15,540		1,431,642		92.13		1,731,618		111.43
2015	—		—		—		—		—	65,862		4,285,618		65.07		4,603,422		69.89
2016	51,371		3,391,466		66.02		3,796,787		73.91	1,097,124		89,179,386		81.28		96,628,393		88.07
Thereafter	76,292		9,945,096		130.36		13,366,964		175.21	3,265,078		219,033,822		67.08		259,895,585		79.60

Boston Properties, Inc.

Second Quarter 2007


*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	6,937		425,412		61.33		425,412		61.33	—		—		—		—		—
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	6,937	$	425,412	$	61.33	$	425,412	$	61.33	—	$	—	$	—	$	—	$	—


Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—		—	$	—
Q2 2008	—		—		—		—		—	—		—		—		—		—
Q3 2008	64,310		4,455,054		69.27		4,455,054		69.27	—		—		—		—		—
Q4 2008	249,969		17,461,853		69.86		17,591,892		70.38	—		—		—		—		—

Total 2008	314,279	$	21,916,907	$	69.74	$	22,046,946	$	70.15	—	$	—	$	—	$	—	$	—


	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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	—		—		—		—		—	6,937		425,412		61.33		425,412		61.33
Q4 2007	—		16,800		—		16,800		—	—		16,800		—		16,800		—

Total 2007	—	$	16,800	$	—	$	16,800	$	—	6,937	$	442,212	$	63.75	$	442,212	$	63.75


Q1 2008	7,768	$	600,000	$	77.24		600,000	$	77.24	7,768	$	600,000	$	77.24		600,000	$	77.24
Q2 2008	350		25,978		74.22		25,978		74.22	350		25,978		74.22		25,978		74.22
Q3 2008	—		—		—		—		—	64,310		4,455,054		69.27		4,455,054		69.27
Q4 2008	1,990		96,593		48.54		100,370		50.44	251,959		17,558,446		69.69		17,692,262		70.22

Total 2008	10,108	$	722,571	$	71.49	$	726,348	$	71.86	324,387	$	22,639,479	$	69.79	$	22,773,294	$	70.20

Boston Properties, Inc.

Second Quarter 2007


*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	279,724	$	9,454,600	$	33.80	$	9,454,600	$	33.80	—	$	—	$	—	$	—	$	—
2008	13,831		459,672		33.23		459,672		33.23	—		—		—		—		—
2009	220,558		7,883,312		35.74		7,963,230		36.10	—		—		—		—		—
2010	122,012		4,414,696		36.18		4,451,906		36.49	—		—		—		—		—
2011	352,267		11,806,452		33.52		12,279,753		34.86	—		—		—		—		—
2012	55,185		1,395,476		25.29		1,844,079		33.42	—		—		—		—		—
2013	144,108		4,500,305		31.23		4,940,325		34.28	—		—		—		—		—
2014	597,042		17,798,043		29.81		19,436,766		32.56	—		—		—		—		—
2015	154,152		4,356,388		28.26		4,960,256		32.18	—		—		—		—		—
2016	—		—		—		—		—	—		—		—		—		—
Thereafter	69,351		2,297,293		33.13		2,620,535		37.79	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	279,724	$	9,454,600	$	33.80	$	9,454,600	$	33.80
2008	—		—		—		—		—	13,831		459,672		33.23		459,672		33.23
2009	—		—		—		—		—	220,558		7,883,312		35.74		7,963,230		36.10
2010	—		—		—		—		—	122,012		4,414,696		36.18		4,451,906		36.49
2011	—		—		—		—		—	352,267		11,806,452		33.52		12,279,753		34.86
2012	—		—		—		—		—	55,185		1,395,476		25.29		1,844,079		33.42
2013	—		—		—		—		—	144,108		4,500,305		31.23		4,940,325		34.28
2014	—		—		—		—		—	597,042		17,798,043		29.81		19,436,766		32.56
2015	—		—		—		—		—	154,152		4,356,388		28.26		4,960,256		32.18
2016	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	69,351		2,297,293		33.13		2,620,535		37.79

Boston Properties, Inc.

Second Quarter 2007

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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	170,715		5,469,218		32.04		5,469,218		32.04	—		—		—		—		—
Q4 2007	109,009		3,985,381		36.56		3,985,381		36.56	—		—		—		—		—

Total 2007	279,724	$	9,454,600	$	33.80	$	9,454,600	$	33.80	—	$	—	$	—	$	—	$	—

Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2008	—		—		—		—		—	—		—		—		—		—
Q3 2008	—		—		—		—		—	—		—		—		—		—
Q4 2008	13,831		459,672		33.23		459,672		33.23	—		—		—		—		—

Total 2008	13,831	$	459,672	$	33.23	$	459,672	$	33.23	—	$	—	$	—	$	—	$	—


	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	—		—		—		—		—	170,715		5,469,218		32.04		5,469,218		32.04
Q4 2007	—		—		—		—		—	109,009		3,985,381		36.56		3,985,381		36.56

Total 2007	—	$	—	$	—	$	—	$	—	279,724	$	9,454,600	$	33.80	$	9,454,600	$	33.80

Q1 2008	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2008	—		—		—		—		—	—		—		—		—		—
Q3 2008	—		—		—		—		—	—		—		—		—		—
Q4 2008	—		—		—		—		—	13,831		459,672		33.23		459,672		33.23

Total 2008	—	$	—	$	—	$	—	$	—	13,831	$	459,672	$	33.23	$	459,672	$	33.23

Boston Properties, Inc.

Second Quarter 2007

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	4,163	$	1,140,156	(1)	$	273.88	$	1,256,616	(1)	$	301.85	17,322	$	781,972	$	45.14	$	781,972	$	45.14
2008	193,065	$	8,437,792			43.70	$	8,400,776			43.51	37,650	$	1,700,612	$	45.17	$	1,729,540		45.94
2009	933,972	$	35,602,356			38.12	$	38,113,080			40.81	398,428	$	15,397,264	$	38.65	$	15,748,576		39.53
2010	181,441	$	6,514,081			35.90	$	6,639,455			36.59	409,261	$	19,851,830	$	48.51	$	20,812,068		50.85
2011	786,979	$	40,900,627			51.97	$	43,146,487			54.83	210,800	$	9,946,190	$	47.18	$	10,731,860		50.91
2012	437,832	$	20,287,655			46.34	$	21,135,688			48.27	155,964	$	6,240,205	$	40.01	$	6,886,316		44.15
2013	223,023	$	12,267,437			55.01	$	13,452,519			60.32	7,265	$	326,318	$	44.92	$	379,763		52.27
2014	504,130	$	22,125,946			43.89	$	23,331,116			46.28	63,796	$	5,567,080	$	87.26	$	6,528,214		102.33
2015	275,473	$	14,943,216			54.25	$	16,133,266			58.57	363,842	$	18,778,301	$	51.61	$	21,472,901		59.02
2016	296,421	$	24,253,264			81.82	$	24,942,487			84.15	57,782	$	2,548,506	$	44.11	$	3,077,449		53.26
Thereafter	636,501	$	24,221,973			38.05	$	29,709,573			46.68	1,547,661	$	73,690,081	$	47.61	$	96,688,095		62.47

	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	6,937	$	442,212		$	63.75	$	442,212		$	63.75	96,338	$	4,042,900	$	41.97	$	4,042,900	$	41.97
2008	324,387	$	22,639,479			69.79	$	22,773,294			70.20	249,254	$	10,906,468	$	43.76	$	10,914,105	$	43.79
2009	112,248	$	8,130,079			72.43	$	8,189,046			72.95	165,364	$	8,269,655	$	50.01	$	8,318,116	$	50.30
2010	258,452	$	18,264,046			70.67	$	18,565,269			71.83	252,301	$	14,454,643	$	57.29	$	14,960,197	$	59.30
2011	106,821	$	7,847,221			73.46	$	8,301,141			77.71	281,280	$	22,231,104	$	79.04	$	22,726,709	$	80.80
2012	175,993	$	15,099,033			85.79	$	16,704,748			94.92	211,036	$	10,994,792	$	52.10	$	11,859,883	$	56.20
2013	56,636	$	4,074,278			71.94	$	7,264,802			128.27	160,388	$	6,929,281	$	43.20	$	7,923,721	$	49.40
2014	15,540	$	1,431,642			92.13	$	1,731,618			111.43	187,302	$	8,799,353	$	46.98	$	9,300,614	$	49.66
2015	65,862	$	4,285,618			65.07	$	4,603,422			69.89	144,489	$	6,284,418	$	43.49	$	6,798,781	$	47.05
2016	1,097,124	$	89,179,386			81.28	$	96,628,393			88.07	794,868	$	32,976,694	$	41.49	$	35,593,844	$	44.78
Thereafter	3,265,078	$	219,033,822			67.08	$	259,895,585			79.60	428,070	$	19,575,773	$	45.73	$	21,264,183	$	49.67

	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 243 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $35.29 and rent on expiring leases with future step-up is $35.29 per square foot in 2007.

Boston Properties, Inc.

Second Quarter 2007

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	238,549	$	5,075,639	$	21.28	$	5,075,639	$	21.28	74,960	$	1,808,915	$	24.13	$	1,808,915	$	24.13
2008	567,994		16,529,639		29.10		16,631,532		29.28	201,058		5,632,358		28.01		5,695,916		28.33
2009	567,794		18,658,728		32.86		19,346,745		34.07	471,201		14,905,047		31.63		15,141,198		32.13
2010	378,821		10,266,787		27.10		10,889,904		28.75	622,902		19,123,666		30.70		20,016,995		32.14
2011	453,021		11,497,720		25.38		12,236,920		27.01	726,968		22,991,774		31.63		25,200,410		34.67
2012	649,747		19,394,800		29.85		20,523,006		31.59	924,021		34,155,464		36.96		37,500,052		40.58
2013	96,384		1,934,435		20.07		2,096,355		21.75	96,638		3,201,267		33.13		3,529,344		36.52
2014	87,354		2,445,870		28.00		2,697,611		30.88	708,110		19,893,503		28.09		22,755,321		32.14
2015	14,632		331,870		22.68		331,870		22.68	445,304		12,851,211		28.86		15,319,464		34.40
2016	158,900		4,909,042		30.89		5,204,042		32.75	418,641		11,950,117		28.55		14,807,580		35.37
Thereafter	133,600		5,375,508		40.24		6,038,788		45.20	855,304		29,359,536		34.33		31,647,847		37.00

	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	$	1,127,017	$	45.70	$	1,146,792	$	46.50
2008	—		—		—		—		—	55,735		1,429,309		25.64		1,463,925		26.27
2009	—		—		—		—		—	28,248		711,967		25.20		734,164		25.99
2010	—		—		—		—		—	560,708		8,121,685		14.48		8,747,423		15.60
2011	—		—		—		—		—	21,737		547,400		25.18		606,602		27.91
2012	—		—		—		—		—	9,792		269,880		27.56		302,015		30.84
2013	—		—		—		—		—	10,011		294,323		29.40		346,775		34.64
2014	—		—		—		—		—	256,302		8,540,563		33.32		9,401,737		36.68
2015	—		—		—		—		—	221,962		6,667,744		30.04		8,149,065		36.71
2016	—		—		—		—		—	74,128		2,221,600		29.97		2,782,008		37.53
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	279,724	$	9,454,600	$	33.80	$	9,454,600	$	33.80	—	$	—	$	—	$	—	$	—
2008	13,831		459,672		33.23		459,672		33.23	—		—		—		—		—
2009	220,558		7,883,312		35.74		7,963,230		36.10	—		—		—		—		—
2010	122,012		4,414,696		36.18		4,451,906		36.49	—		—		—		—		—
2011	352,267		11,806,452		33.52		12,279,753		34.86	—		—		—		—		—
2012	55,185		1,395,476		25.29		1,844,079		33.42	—		—		—		—		—
2013	144,108		4,500,305		31.23		4,940,325		34.28	—		—		—		—		—
2014	597,042		17,798,043		29.81		19,436,766		32.56	—		—		—		—		—
2015	154,152		4,356,388		28.26		4,960,256		32.18	—		—		—		—		—
2016	—		—		—		—		—	—		—		—		—		—
Thereafter	69,351		2,297,293		33.13		2,620,535		37.79	—		—		—		—		—

Boston Properties, Inc.

Second Quarter 2007

HOTEL PERFORMANCE

Cambridge Center Marriott


	Second Quarter 2007			Second Quarter 2006			Percent Change		Year to Date 2007			Year to Date 2006			Percent Change
Occupancy		82.9	%		80.3	%(1)	3.2	%		78.4	%		68.6	%(1)	14.2	%
Average Daily Rate	$	229.81		$	216.31		6.2	%	$	202.76		$	187.35		8.2	%
Revenue per available room	$	190.52		$	173.77		9.6	%	$	158.86		$	132.19		20.2	%

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

Boston Properties, Inc.

Second Quarter 2007

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾—By Location


	CBD				Suburban				Total
Location	30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06
Greater Boston	98.4	%	93.8	%	84.9	%	92.0	%	91.9	%	93.0	%
Greater Washington	99.8	%	98.6	%	97.6	%	95.9	%	98.3	%	96.8	%
Midtown Manhattan	99.5	%	99.7	%	n/a		n/a		99.5	%	99.7	%
Princeton/East Brunswick, NJ	n/a		n/a		86.7	%	86.5	%	86.7	%	86.5	%
Greater San Francisco	86.7	%	87.2	%	94.8	%	91.8	%	88.2	%	88.1	%

Total Portfolio	96.6	%	95.3	%	91.3	%	92.6	%	94.3	%	94.1	%


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

	CBD				Suburban				Total
	30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06		30-Jun-07		30-Jun-06
Total Office Portfolio	96.5	%	95.2	%	92.5	%	92.0	%	94.8	%	93.9	%
Total Office/Technical Portfolio	100.0	%	100.0	%	81.4	%	97.5	%	84.8	%	97.9	%

Total Portfolio	96.6	%	95.3	%	91.3	%	92.6	%	94.3	%	94.1	%

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

Boston Properties, Inc.

Second Quarter 2007

SAME PROPERTY PERFORMANCE

Office, Office/Technical and Hotel Properties


	Office		Office/Technical			Hotel (1)			Total
Number of Properties	95			18			1			114
Square feet	26,600,339			1,627,863			330,400			28,558,602
Percent of in-service properties	92.5	%		91.1	%		100.0	%		92.5	%
Occupancy @ 6/30/2006	93.9	%		97.9	%		—			94.1	%
Occupancy @ 6/30/2007	94.8	%		84.8	%		—			94.3	%
Percent change from 2nd quarter 2007 over 2nd quarter 2006 (2):
Rental revenue	6.7	%		3.8	%		11.7	%		6.7	%
Operating expenses and real estate taxes	9.3	%		57.8	%		16.3	%		10.6	%
Net Operating Income (3)	5.4	%		-8.3	%		2.9	%(2)		4.7	%
Net Operating Income (3)—without hotels										4.8	%
Rental revenue—cash basis	7.5	%		2.7	%		11.8	%		7.4	%
Net Operating Income (3)—cash basis (4)	6.5	%		-9.6	%		2.9	%(2)		5.7	%
Net Operating Income (3)—cash basis(4)—without hotels										5.7	%

*Same Property Lease Analysis—quarter ended June 30, 2007*
			Office			Office/Technical			Total
Vacant space available @ 4/1/2007 (sf)				1,389,393			248,326			1,637,719
Square footage of leases expiring or terminated 4/1/2007-6/30/2007				483,130			—			483,130

Total space for lease (sf)				1,872,523			248,326			2,120,849

New tenants (sf)				372,511			916			373,427
Renewals (sf)				127,088			—			127,088

Total space leased (sf)				499,599			916			500,515

Space available @ 6/30/2007 (sf)				1,372,924			247,410			1,620,334

Net (increase)/decrease in available space (sf)				16,469			916			17,385
2nd generation Average lease term (months)				81			12			81
2nd generation Average free rent (days)				10			—			10
2nd generation TI/Comm PSF			$	34.05		$	—		$	33.98
Increase (decrease) in 2nd generation gross rents (4)				11.17	%		0.00	%		11.17	%
Increase (decrease) in 2nd generation net rents (4)				16.51	%		0.00	%		16.51	%

(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 344,981 square feet.

Boston Properties, Inc.

Second Quarter 2007

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	6/30/2007			6/30/2006
	*(in thousands)*
Net income available to common shareholders	$	102,344		$	625,731
Gains on sales of real estate from discontinued operations, net of minority interest		(11,716	)		—
Income from discontinued operations, net of minority interest		—			(3,244	)
Gains on sales of real estate, net of minority interest		—			(581,302	)
Minority interest in Operating Partnership		17,072			11,155
Income from unconsolidated joint ventures		(17,268	)		(1,677	)
Minority interest in property partnership		—			(777	)

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		90,432			49,886

Add:
Losses from early entinguishments of debt		—			31,457
Depreciation and amortization		74,621			67,077
Interest expense		73,743			78,449
General and administrative expense		16,291			15,796

Subtract:
Interest and other income		(26,205	)		(8,554	)
Development and management services income		(5,130	)		(5,227	)

Consolidated Net Operating Income	$	223,752		$	228,884

Same Property Net Operating Income	$	209,350		$	199,888

Net operating income from non Same Properties (1)		13,673			27,596
Termination income		729			1,400

Consolidated Net Operating Income	$	223,752		$	228,884

Same Property Net Operating Income	$	209,350		$	199,888
Less straight-line rent and fair value lease revenue		8,316			9,637

Same Property Net Operating Income— cash basis	$	201,034		$	190,251

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

Boston Properties, Inc.

Second Quarter 2007

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
	30-Jun-07			30-Jun-06		$ Change			% Change		30-Jun-07		30-Jun-06			$ Change			% Change
Rental Revenue	$	304,329		$	285,918						$	10,993	$	10,587
Less Termination Income		729			1,400							—		—

Rental revenue—subtotal		303,600			284,518		19,082		6.7	%		10,993		10,587			406		3.8	%
Operating expenses and real estate taxes		105,110			96,125		8,985		9.3	%		3,066		1,943			1,123		57.8	%

Net Operating Income (1)	$	198,490		$	188,393	$	10,097		5.4	%	$	7,927	$	8,644		$	(717	)	-8.3	%

Rental revenue—subtotal	$	303,600		$	284,518						$	10,993	$	10,587
Less straight line rent and fair value lease revenue		8,306			9,747		(1,441	)	-14.8	%		11		(111	)		122		-109.9	%

Rental revenue—cash basis		295,294			274,771		20,523		7.5	%		10,982		10,698			284		2.7	%
Less:
Operating expenses and real estate taxes		105,110			96,125		8,985		9.3	%		3,066		1,943			1,123		57.8	%

Net Operating Income (2)—cash basis	$	190,184		$	178,646	$	11,538		6.5	%	$	7,916	$	8,755		$	(839	)	-9.6	%


	Hotel										Total
	For the three months ended					$ Change			% Change		For the three months ended					$ Change			% Change
	30-Jun-07			30-Jun-06		$ Change			% Change		30-Jun-07		30-Jun-06			$ Change			% Change
Rental Revenue	$	9,345		$	8,364						$	324,667	$	304,869
Less Termination Income		—			—							729		1,400

Rental revenue—subtotal		9,345			8,364	$	981		11.7	%		323,938		303,469			20,469		6.7	%
Operating expenses and real estate taxes		6,412			5,513		899		16.3	%		114,588		103,581			11,007		10.6	%

Net Operating Income (1)	$	2,933		$	2,851	$	82		2.9	%	$	209,350	$	199,888		$	9,462		4.7	%

Rental revenue—subtotal	$	9,345		$	8,364						$	323,938	$	303,469
Less straight line rent and fair value lease revenue		(1	)		1		(2	)	-200.0	%		8,316		9,637			(1,321	)	-13.7	%

Rental revenue—cash basis		9,346			8,363		983		11.8	%		315,622		293,832			21,790		7.4	%
Less:
Operating expenses and real estate taxes		6,412			5,513		899		16.3	%		114,588		103,581			11,007		10.6	%

Net Operating Income (2)—cash basis	$	2,934		$	2,850	$	84		2.9	%	$	201,034	$	190,251		$	10,783		5.7	%

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

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

Boston Properties, Inc.

Second Quarter 2007

LEASING ACTIVITY

All In-Service Properties—quarter ended June 30, 2007


	Office			Office/Technical			Total
Vacant space available @ 4/1/2007 (sf)		1,621,321			274,274			1,895,595
Property dispositions/ assets taken out of service (sf)		—			—			—
Property acquisitions/ assets placed in-service (sf)		—			—			—
Leases expiring or terminated 4/1/2007-6/30/2007 (sf)		557,586			—			557,586

Total space for lease (sf)		2,178,907			274,274			2,453,181

New tenants (sf)		459,264			916			460,180
Renewals (sf)		149,300			—			149,300

Total space leased (sf)		608,564			916			609,480	(1)

Space available @ 6/30/2007 (sf)		1,570,343			273,358			1,843,701

Net (increase)/decrease in available space (sf)		50,978			916			51,894
2nd generation Average lease term (months)		76			12			76
2nd generation Average free rent (days)		15			—			15
2nd generation TI/Comm PSF	$	31.26		$	—		$	31.21
Increase (decrease) in 2nd generation gross rents (2)		11.60	%		0.00	%		11.60	%
Increase (decrease) in 2nd generation net rents (3)		17.72	%		0.00	%		17.72	%

(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 409,773.

(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 409,773.


	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 (4)	Total square feet of leases executed in the quarter (5)
Boston	—	331,764	-0.27	%	-0.47	%	331,764	243,465
Washington	—	34,830	-5.71	%	-8.51	%	34,830	299,099
New York	—	—	0.00	%	0.00	%	—	143,325
San Francisco	—	205,321	25.80	%	44.25	%	205,321	140,812
Princeton	—	37,565	-16.57	%	-25.85	%	37,565	222,298

	—	609,480	11.60	%	17.72	%	609,480	1,048,999

(4)	Represents leases for which rental revenues has commenced in accordance with GAAP during the quarter.

(5)	Represents leases executed for which the economic impact may be realized in the current or future quarters.

Boston Properties, Inc.

Second Quarter 2007

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q2 2007		Q1 2007		2006			2005		2004
Recurring capital expenditures	$	6,676	$	3,208	$	25,718		$	22,369	$	25,101
Planned non-recurring capital expenditures associated with acquisition properties		306		352		3,869			2,957		4,889
Hotel improvements, equipment upgrades and replacements		565		281		7,969	(1)		4,097		1,001

	$	7,547	$	3,841	$	37,556		$	29,423	$	30,991


*2nd Generation Tenant Improvements and Leasing Commissions*

	Q2 2007		Q1 2007		2006			2005		2004
Office
Square feet		608,564		497,349		2,972,996			2,749,079		3,356,267

Tenant improvement and lease commissions PSF	$	31.26	$	25.60	$	29.14		$	28.75	$	24.74

Office/Technical
Square feet		916		—		33,400			82,753		195,953

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

Average tenant improvement and lease commissions PSF	$	31.21	$	25.60	$	28.82		$	28.00	$	24.17

(1)	Includes approximately $5.6 million of costs related to a room renovation project at Cambridge Center Marriott.

Boston Properties, Inc.

Second Quarter 2007

ACQUISITIONS/DISPOSITIONS

as of June 30, 2007

ACQUISITIONS

For the period from January 1, 2007 through June 30, 2007


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment			Total Investment		Percentage Leased
6601 & 6605 Springfield Center Drive	Jan-07	97,388	$	16,500,000	$	—	(1)	$	16,500,000	100	%
250 West 55th Street	Jan-07	N/A		228,750,000		—	(1)		228,750,000	N/A
103 Fourth Avenue	Jan-07	62,476		14,300,000		—	(1)		14,300,000	58	%
Kingstowne Towne Center	Mar-07	395,377		133,960,000		500,000			134,460,000	95	%
Russia Wharf	Mar-07	N/A		105,500,000		—	(1)		105,500,000	N/A
Springfield Metro Center	Apr-07	N/A		25,564,000		—	(1)		25,564,000	N/A

Total Acquisitions		555,241	$	524,574,000	$	500,000		$	525,074,000	92	%



*DISPOSITIONS*
For the period from January 1, 2007 through June 30, 2007

Property	Date Disposed	Square Feet	Gross Sales Price		Book Gain
5 Times Square	Feb-07	1,101,779	$	1,280,000,000	$	713,603,000
Long Wharf Marriott (402 Rooms)	Mar-07	420,000		231,000,000		190,924,000
280 Park Avenue	Jun-06					18,037,000
Newport Office Park	Apr-07	171,957		37,000,000		13,643,000

Total Dispositions		1,693,736	$	1,548,000,000	$	936,207,000

(1)	Anticipated future investment on future development projects are not included.

(2)

280 Park Avenue was sold in June 2006. The Company entered into a 74,340 net rentable square foot master lease obligation with the buyer resulting in the deferral of approximately $67.3 million of the book gain. Subsequent to the sale during 2006, the Company signed qualifying leases for 26,281 net rentable square feet and recognized approximately $21.0 million of additional book gain. During the six months ended June 30, 2007, the Company signed an additional qualifying lease for 22,000 net rentable square feet resulting in the recognition of approximately $18.1 million of additional book gain. As of June 30, 2007, the master lease obligation totaled approximately $26.9 million.

Boston Properties, Inc.

Second Quarter 2007

VALUE CREATION PIPELINE—CONSTRUCTION IN PROGRESS (1)

as of June 30, 2007


Construction Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date (2)		Estimated Total Investment (2)		Total Construction Loan (2)		Amount Drawn at 6/30/2007 (2)		Estimated Future Equity Requirement (2)		Percentage Leased (3)
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—	$	26,981,488	$	37,111,049	$	28,742,679	$	18,529,872	$	—	N/A
505 9th Street (50% ownership)	Q4 2007	Q4 2008	Washington, D.C.	1	323,000		54,833,206		65,000,000		47,500,000		33,351,712		—	87	%
South of Market (Phase I)	Q1 2008	Q3 2009	Reston, VA	3	652,000		120,286,448		213,800,000		200,000,000		70,815,648		—	45	%
77 CityPoint (formerly 77 Fourth Avenue)	Q1 2008	Q4 2008	Waltham, MA	1	210,000		41,198,974		79,707,173		—		—		38,508,199	17	%
One Preserve Parkway	Q2 2008	Q4 2009	Rockville, MD	1	183,000		16,389,935		60,536,931		—		—		44,146,996	0	%

Total Properties under Construction				6	1,368,000	$	259,690,051	$	456,155,153	$	276,242,679	$	122,697,232	$	82,655,195	45	%


*PROJECTS PLACED-IN-SERVICE DURING 2007*

	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Debt		Drawn at June 30, 2007		Estimated Future Equity Requirement		Percentage Leased
Total Projects Placed in Service				—	—	$	—	$	—	$	—	$	—	$	—	—

(1)	A project is classified as Construction in Progress when construction or supply contracts have been signed and physical improvements have commenced.

(2)	Represents the Company’s share.

(3)	Represents percentage leased as of July 24, 2007.

Boston Properties, Inc.

Second Quarter 2007

VALUE CREATION PIPELINE—OWNED LAND PARCELS

as of June 30, 2007


Location	Acreage	Developable Square Feet
Waltham, MA (1)	25.4	1,163,604
Reston, VA	34.8	1,130,000
Boston, MA	2.4	1,079,500
Dulles, VA	76.6	934,000
New York, NY	1.0	975,000
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Springfield, VA (1)	17.8	800,000
Rockville, MD	58.1	759,000
Marlborough, MA	50.0	400,000
Weston, MA	74.0	350,000
Chevy Chase, MD	1.0	300,000
Andover, MA	10.0	110,000

	381.8	9,692,104


*VALUE CREATION PIPELINE—LAND PURCHASE OPTIONS* as of June 30, 2007
Location	Acreage	Developable Square Feet
Princeton, NJ (2)	149.9	1,900,000
Framingham, MA (3)	21.5	300,000
Cambridge, MA (4)	—	200,000
New York, NY	1.0	840,000

	172.4	3,240,000

(1)	Properties on-site are positioned for future re-development. These properties are currently in-service and can be found on pages 21-23.

(2)	$30.50 per square foot and $125,000 per annum non-refundable payment.

(3)	Subject to ground lease.

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

Boston Properties, Inc.

Second Quarter 2007

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

800 Boylston Street

Boston, MA 02199


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

Kathleen DiChiara
Investor Relations Manager
(617) 236-3343

BOSTON PROPERTIES, INC. ANNOUNCES

SECOND QUARTER 2007 RESULTS


Reports diluted FFO per share of $1.18		Reports diluted EPS of $0.84

BOSTON, MA, July 24, 2007 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the second quarter ended June 30, 2007.

Funds from Operations (FFO) for the quarter ended June 30, 2007 were $142.9 million, or $1.20 per share basic and $1.18 per share diluted. This compares to FFO for the quarter ended June 30, 2006 of $129.4 million, or $1.14 per share basic and $1.10 per share diluted, after a supplemental adjustment to exclude the loss from early extinguishment of debt associated with the sale of real estate. The loss from early extinguishment of debt associated with the sale of real estate totaled $0.24 per share basic and $0.22 per share diluted for the quarter ended June 30, 2006. The weighted average number of basic and diluted shares outstanding totaled 118,961,276 and 122,660,356, respectively, for the quarter ended June 30, 2007 and 113,993,783 and 120,605,194, respectively, for the quarter ended June 30, 2006.

Net income available to common shareholders was $102.3 million for the three months ended June 30, 2007, compared to $625.7 million for the quarter ended June 30, 2006. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2007 was $0.86 basic and $0.84 on a diluted basis. This compares to EPS for the second quarter of 2006 of $5.33 basic and $5.23 on a diluted basis. EPS includes $0.10 and $4.88, on a diluted basis, related to gains on sales of real estate and discontinued operations resulting from sales of real estate for gross sales proceeds of approximately $37.0 million and $1.2 billion for the quarters ended June 30, 2007 and 2006, respectively.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended June 30, 2007. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of June 30, 2007, the Company’s portfolio consisted of 134 properties comprising approximately 42.7 million square feet, including six properties under construction totaling 1.4 million square feet and one hotel. The overall percentage of leased space for the 127 properties in service as of June 30, 2007 was 94.0%.

As previously announced on May 14, 2007, Douglas T. Linde was elected President of the Company. He assumed the title of President from Edward H. Linde, who will remain as Chief Executive Officer and a Director. Mr. D. Linde will continue to serve as the Company’s Chief Financial Officer and Treasurer until his successor is named.

Significant events of the second quarter include:

•

On April 5, 2007, the Company sold Newport Office Park located in Quincy, Massachusetts, for approximately $37.0 million. Newport Office Park is a Class A office property consisting of approximately 172,000 net rentable square feet. Net cash proceeds totaled approximately $33.7 million.

•

On April 11, 2007, the Company acquired a parcel of land located in Springfield, Virginia, for a purchase price of approximately $25.6 million.

•

On April 12, 2007, the Company entered into an agreement for the sale of a parcel of land located in Washington, D.C. for approximately $33.7 million. In addition, the Company entered into a development management agreement with the buyer to develop on the parcel a Class A office property totaling approximately 165,000 net rentable square feet. The sale is subject to the satisfaction of customary closing conditions and there can be no assurance that the sale will be consummated on the terms currently contemplated or at all.

•

On May 9, 2007, the Company used available cash to repay the mortgage loan collateralized by its 250 West 55th Street project located in New York City totaling approximately $160.0 million. There was no prepayment penalty associated with the repayment. The mortgage loan bore interest at a variable rate equal to LIBOR plus 0.40% per annum and was scheduled to mature in January 2009.

•

On May 17, 2007, the Company obtained mortgage financing totaling $25.0 million collateralized by its Montvale Center property located in Gaithersburg, Maryland. Montvale Center is a Class A office property consisting of approximately 123,000 net rentable square feet. The mortgage financing bears interest at a fixed rate equal to 5.93% per annum and matures on June 6, 2012.

•

On June 1, 2007, the Company’s Value-Added Fund sold Worldgate Plaza located in Herndon, Virginia for approximately $109.0 million. Worldgate Plaza is an office complex consisting of approximately 322,000 net rentable square feet. Net cash proceeds totaled approximately $50.5 million, of which the Company’s share was approximately $20.3 million, after the repayment of the mortgage indebtedness of $57.0 million. The mortgage loan bore interest at a variable rate equal to LIBOR plus 0.89% per annum and was scheduled to mature on December 1, 2007.

•

On June 11, 2007, the Company entered into a lease agreement with The Trustees of Princeton University for a build-to-suit project with approximately 120,000 net rentable square feet of Class A office space located in Princeton, New Jersey. The Company expects that the building will be complete and available for occupancy during the fourth quarter of 2009.

•

On June 22, 2007, a joint venture in which the Company has a 50% interest entered into agreements to complete the assemblage for its development site at Eighth Avenue and 46^th Street consisting of an approximately 840,000 net rentable square foot Class A office property.

Transactions completed subsequent to June 30, 2007:

•

On July 3, 2007, the Company executed a binding agreement for the sale of Democracy Center in Bethesda, Maryland, for approximately $280.5 million. Democracy Center is a Class A office complex that contains an aggregate of approximately 685,000 net rentable square feet. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurance that the sale will be consummated on the terms currently contemplated or at all, it is expected to close by the end of August 2007.

•

On July 12, 2007, the Company executed a lease with Ropes & Gray to relocate its Boston office to the Prudential Tower. The firm will occupy more than 400,000 square feet of office space in the top floors of the 52-story, 1.2 million square foot office building beginning in the fall of 2010.

•

On July 13, 2007, the Company entered into a joint venture with an unrelated third party to develop a Class A office complex aggregating approximately 425,000 net rentable square feet located in Anne Arundel County, Maryland. The joint venture partner contributed the land for a 50% interest. The Company will contribute cash of approximately $14.9 million for its 50% interest in the joint venture.

•

The Company also announced that, together with Boston Properties Limited Partnership (“BPLP”), it intends to file a combined so-called “universal shelf” registration statement with the Securities and Exchange Commission to update and replace a series of existing registration statements covering the possible issuance by either the Company or BPLP of various equity and debt securities. Once declared effective by the SEC, this registration statement will give the Company and/or BPLP flexibility to offer and sell from time to time, in one or more offerings, up to $2.0 billion of senior and subordinated debt securities (including BPLP notes exchangeable for Company common stock and Company convertible notes), as well as Company common stock, preferred stock and warrants. Neither the Company nor BPLP has any current intention to issue any of the securities being registered for sale.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of such securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction. Offers to sell any security will be made only by means of a prospectus.

EPS and FFO per Share Guidance:

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


	Third Quarter 2007					Full Year 2007
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	2.03	-	$	2.04	$	10.54	-	$	10.59

Add:
Projected Company Share of Real Estate Depreciation and Amortization		0.51	-		0.51		2.06	-		2.06

Less:
Projected Company Share of Gains on Sales of Real Estate		1.41	-		1.41		8.00	-		8.00

Projected FFO per Share (diluted)	$	1.13	-	$	1.14	$	4.60	-	$	4.65

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 other 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, July 25, 2007 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter 2007 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) 240-6709 (Domestic) or (303) 262-2175 (International); no passcode required. A replay of the conference call will be available through August 1, 2007, by dialing (800) 405-2236 (Domestic) or (303) 590-3000 (International) and entering the passcode 11092834. 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’ second quarter 2007 “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.

Prudential Center

800 Boylston Street, Suite 1900

Boston, MA 02199-8103

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 one hotel. 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 third quarter and full fiscal year 2007.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	270,508		$	276,298		$	543,416		$	551,838
Recoveries from tenants		47,462			45,322			94,504			92,328
Parking and other		16,488			14,146			31,809			27,902

Total rental revenue		334,458			335,766			669,729			672,068
Hotel revenue		9,335			8,364			16,044			13,279
Development and management services		5,130			5,227			9,857			9,601
Interest and other		26,205			8,554			43,193			10,513

Total revenue		375,128			357,911			738,823			705,461


Expenses
Operating:
Rental		113,624			109,733			227,199			221,840
Hotel		6,417			5,513			12,431			10,521
General and administrative		16,291			15,796			33,099			30,438
Interest		73,743			78,449			147,669			153,266
Depreciation and amortization		74,621			67,077			145,099			133,082
Losses from early extinguishments of debt		—			31,457			722			31,924

Total expenses		284,696			308,025			566,219			581,071

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		90,432			49,886			172,604			124,390
Minority interest in property partnership		—			777			—			2,013
Income from unconsolidated joint ventures		17,268			1,677			18,233			2,967

Income before minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		107,700			52,340			190,837			129,370
Minority interest in Operating Partnership		(17,072	)		(11,155	)		(28,266	)		(26,468	)

Income before gains on sales of real estate and discontinued operations		90,628			41,185			162,571			102,902
Gains on sales of real estate, net of minority interest		—			581,302			620,262			585,844

Income before discontinued operations		90,628			622,487			782,833			688,746
Discontinued operations:
Income from discontinued operations, net of minority interest		—			3,244			1,282			3,858
Gains on sales of real estate from discontinued operations, net of minority interest		11,716			—			173,815			—

Net income available to common shareholders	$	102,344		$	625,731		$	957,930		$	692,604


Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.76		$	5.30		$	6.51		$	5.92
Discontinued operations, net of minority interest		0.10			0.03			1.48			0.03

Net income available to common shareholders	$	0.86		$	5.33		$	7.99		$	5.95

Weighted average number of common shares outstanding		118,961			113,994			118,565			113,255


Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.74		$	5.20		$	6.39		$	5.80
Discontinued operations, net of minority interest		0.10			0.03			1.45			0.03

Net income available to common shareholders	$	0.84		$	5.23		$	7.84		$	5.83

Weighted average number of common and common equivalent shares outstanding		120,984			116,176			120,811			115,669

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	June 30, 2007			December 31, 2006
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	9,037,468		$	8,819,934
Real estate held for sale, net		—			433,492
Construction in progress		584,620			115,629
Land held for future development		189,698			183,403
Less: accumulated depreciation		(1,474,771	)		(1,392,055	)

Total real estate		8,337,015			8,160,403

Cash and cash equivalents		1,885,318			725,788
Cash held in escrows		22,665			25,784
Tenant and other receivables, net of allowance for doubtful accounts of $2,957 and $2,682, respectively		48,398			57,052
Accrued rental income, net of allowance of $530 and $783, respectively		296,424			327,337
Deferred charges, net		264,664			274,079
Prepaid expenses and other assets		47,174			40,868
Investments in unconsolidated joint ventures		92,944			83,711

Total assets	$	10,994,602		$	9,695,022


LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	2,855,889		$	2,679,462
Unsecured senior notes, net of discount		1,471,691			1,471,475
Unsecured exchangeable senior notes, net of discount		1,292,022			450,000
Unsecured line of credit		—			—
Accounts payable and accrued expenses		123,910			102,934
Dividends and distributions payable		96,192			857,892
Accrued interest payable		59,105			47,441
Other liabilities		201,406			239,084

Total liabilities		6,100,215			5,848,288

Commitments and contingencies		—			—

Minority interests		731,043			623,508

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, 119,106,981 and 117,582,442 shares issued and 119,028,081 and 117,503,542 shares outstanding in 2007 and 2006, respectively		1,190			1,175
Additional paid-in capital		3,263,797			3,119,941
Earnings in excess of dividends		904,417			108,155
Treasury common stock, at cost		(2,722	)		(2,722	)
Accumulated other comprehensive loss		(3,338	)		(3,323	)

Total stockholders’ equity		4,163,344			3,223,226

Total liabilities and stockholders’ equity	$	10,994,602		$	9,695,022

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended June 30,						Six months ended June 30,
	2007			2006			2007			2006
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	102,344		$	625,731		$	957,930		$	692,604

Add:
Minority interest in Operating Partnership		17,072			11,155			28,266			26,468
Less:
Minority interest in property partnership		—			777			—			2,013
Income from unconsolidated joint ventures		17,268			1,677			18,233			2,967
Gains on sales of real estate, net of minority interest		—			581,302			620,262			585,844
Income from discontinued operations, net of minority interest		—			3,244			1,282			3,858
Gains on sales of real estate from discontinued operations, net of minority interest		11,716			—			173,815			—

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		90,432			49,886			172,604			124,390

Add:
Real estate depreciation and amortization (2)		76,264			69,773			149,134			138,447
Income from discontinued operations		—			3,847			1,504			4,583
Income from unconsolidated joint ventures (3)		1,815			1,677			2,780			2,967
Less:
Minority interest in property partnership’s share of funds from operations		—			211			—			479
Preferred distributions		1,084			2,965			2,286	(4)		6,075

Funds from operations (FFO)		167,427			122,007			323,736			263,833
Add:
Losses from early extinguishments of debt associated with the sales of real estate		—			31,444			—			31,444

Funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		167,427			153,451			323,736			295,277
Less:
Minority interest in the Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		24,483			24,061			47,795			46,688


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	$	142,944		$	129,390		$	275,941		$	248,589


Our percentage share of funds from operations—basic		85.38	%		84.32	%		85.24	%		84.19	%

Weighted average shares outstanding—basic		118,961			113,994			118,565			113,255

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.20		$	1.14		$	2.33		$	2.19

FFO per share basic	$	1.20		$	0.90		$	2.33		$	1.96

Weighted average shares outstanding—diluted		122,660			120,605			122,609			120,312

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		$	1.10		$	2.28		$	2.13

FFO per share diluted	$	1.18		$	0.88		$	2.28		$	1.91

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $74,621, $67,077, $145,099 and $133,082, our share of unconsolidated joint venture real estate depreciation and amortization of $2,085, $2,280, $4,184 and $4,584 and depreciation and amortization from discontinued operations of $0, $835, $608 and $1,677, less corporate-related depreciation and amortization of $442, $419, $757 and $896 for the three months and six months ended June 30, 2007 and 2006, respectively.

(3)	Excludes approximately $15.5 million related to our share of the gain on sale and related loss from early extinguishment of debt associated with the sale of Worldgate Plaza for the three months and six months ended June 30, 2007.

(4)

Excludes an adjustment of approximately $3.1 million for the six months ended June 30, 2007 to the 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.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	June 30, 2007		December 31, 2006
Greater Boston	90.9	%	89.9	%
Greater Washington, D.C.	97.6	%	98.0	%
Midtown Manhattan	99.5	%	99.9	%
Princeton/East Brunswick, NJ	86.7	%	87.9	%
Greater San Francisco	89.7	%	90.2	%

Total Portfolio	94.0	%	94.2	%


	% Leased by Type
	June 30, 2007		December 31, 2006
Class A Office Portfolio	94.5	%	94.7	%
Office/Technical Portfolio	84.7	%	84.5	%

Total Portfolio	94.0	%	94.2	%