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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 26, 2010

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 Item 2.02 - “Results of Operations and Financial Condition” is being furnished. Such information, including Exhibits 99.1 and 99.2 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 Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

On January 26, 2010, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter of 2009. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01.

Financial Statements and Exhibits.

(d) Exhibits.


Exhibit No.		Description

*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended December 31, 2009.

*99.2		Press release dated January 26, 2010.

*	Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	BOSTON PROPERTIES, INC.

Date: January 26, 2010	By:	/S/ MICHAEL E. LABELLE
		Michael E. LaBelle
		Senior Vice President, Chief Financial Officer

EXHIBIT INDEX


Exhibit No.		Description

*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended December 31, 2009.

*99.2		Press release dated January 26, 2010.

*	Filed herewith.

Boston Properties Inc. Supplemental Operating and Financial Data

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2009

Boston Properties, Inc.

Fourth Quarter 2009

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
Capital Structure		12
Debt Analysis		13-15
Unconsolidated Joint Ventures		16-17
Value-Added Fund		18
Portfolio Overview-Square Footage		19
In-Service Property Listing		20-22
Top 20 Tenants and Tenant Diversification		23
Office Properties-Lease Expiration Roll Out		24
Office/Technical Properties-Lease Expiration Roll Out		25
Retail Properties - Lease Expiration Roll Out		26
Grand Total - Office, Office/Technical, Industrial and Retail Properties		27
Greater Boston Area Lease Expiration Roll Out		28-29
Washington, D.C. Area Lease Expiration Roll Out		30-31
San Francisco Area Lease Expiration Roll Out		32-33
Midtown Manhattan Area Lease Expiration Roll Out		34-35
Princeton Area Lease Expiration Roll Out		36-37
CBD/Suburban Lease Expiration Roll Out		38-39
Hotel Performance and Occupancy Analysis		40
Same Property Performance		41
Reconciliation to Same Property Performance and Net Income		42-43
Leasing Activity		44
Capital Expenditures, Tenant Improvements and Leasing Commissions		45
Acquisitions/Dispositions		46
Value Creation Pipeline - Construction in Progress		47
Value Creation Pipeline - Land Parcels and Purchase Options		48
Definitions		49-50

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 ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effectiveness of our interest rate hedging programs, the effects of local economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Boston Properties, Inc.

Fourth Quarter 2009

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-six years of real estate experience and sixteen years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Mortimer B. Zuckerman, Chairman of our Board of Directors and Chief Executive Officer, and Douglas T. Linde, our President. 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 ten distinquished members, the majority of which serve as Independent Directors.

Strategy

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


Snapshot
(as of December 31, 2009)
Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		December 31
Total Properties (includes unconsolidated joint ventures, other than the Value-Added Fund)		146
Total Square Feet (includes unconsolidated joint ventures, other than the Value-Added Fund)		50.5 million
Common Shares and Units Outstanding (as converted, but excluding outperformance plan units)		161.6 million
Dividend - Quarter/Annualized		$0.50/$2.00
Dividend Yield		2.98%

Total Combined Market Capitalization		$19.1 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (Fitch); A- (S&P)

Boston Properties, Inc.

Fourth Quarter 2009

INVESTOR INFORMATION


Board of Directors		Management
Mortimer B. Zuckerman Chairman of the Board and Chief Executive Officer	Fredrick J. Iseman Director	E. Mitchell Norville Executive Vice President, Chief Operating Officer	Robert E. Pester Senior Vice President and Regional Manager of San Francisco

Douglas T. Linde President and Director	Alan J. Patricof Director, Chair of Audit Committee	Raymond A. Ritchey Executive Vice President, National Director of Acquisitions & Development	Robert E. Selsam Senior Vice President and Regional Manager of New York

Lawrence S. Bacow Director	Richard E. Salomon Director, Chair of Compensation Committee	Michael E. LaBelle Senior Vice President, Chief Financial Officer	Frank D. Burt Senior Vice President, General Counsel

Zoë Baird Director, Chair of Nominating & Corporate Governance Committee	Martin Turchin Director	Peter D. Johnston Senior Vice President and Regional Manager of Washington, D.C.	Michael R. Walsh Senior Vice President, Finance

Carol B. Einiger Director	David A. Twardock Director	Bryan J. Koop Senior Vice President and Regional Manager of Boston	Arthur S. Flashman Vice President, Controller

		Mitchell S. Landis Senior Vice President and Regional Manager of Princeton

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	Inquiries should be directed to Michael Walsh, Senior Vice President, Finance at 617.236.3410 or mwalsh@bostonproperties.com

			Arista Joyner, Investor Relations Manager at 617.236.3343 or ajoyner@bostonproperties.com

Common Stock Data (NYSE: BXP)

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


	Q4 2009			Q3 2009			Q2 2009			Q1 2009			Q4 2008
High Closing Price	$	70.80		$	70.55		$	53.01		$	55.55		$	89.30
Low Closing Price	$	57.25		$	43.62		$	34.74		$	31.49		$	43.28
Average Closing Price	$	65.43		$	57.27		$	46.52		$	41.40		$	60.92
Closing Price, at the end of the quarter	$	67.07		$	65.55		$	47.70		$	35.03		$	55.00
Dividends per share - annualized	$	2.00		$	2.00		$	2.00		$	2.72		$	2.72
Closing dividend yield - annualized		2.98	%		3.05	%		4.19	%		7.76	%		4.95	%
Closing common shares outstanding, plus common, preferred and LTIP units on an as-converted basis (but excluding outperformance plan units) (thousands) (1)		161,571			161,462			161,345			144,069			143,497
Closing market value of outstanding shares and units (thousands)	$	10,836,567		$	10,583,834		$	7,696,157		$	5,046,737		$	7,892,335

(1)

For additional detail, see page 12.

Timing

Quarterly results for 2010 will be announced according to the following schedule:


First Quarter	Late April 2010	Third Quarter	Late October 2010
Second Quarter	Late July 2010	Fourth Quarter	Late January 2011

Boston Properties, Inc.

Fourth Quarter 2009

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage

John Eade Argus Research Company 212.427.7500	Mitch Germain JMP Securities 212.906.3546	Thomas Cook Citi Investment Research 212.723.1112	Rating Agencies: Janice Svec Fitch Ratings 212.908.0304 Karen Nickerson Moody’s Investors Service 212.553.4924 Linda Phelps Standard & Poor’s 212.438.3059
Jeffrey Spector / Jamie Feldman Bank of America-Merrill Lynch 212.449.6329 / 212.449.6339	Anthony Paolone / Michael Mueller J.P. Morgan Securities 212.622.6682 / 212.622.6689	John Giordano Credit Suisse Securities 212.538.4935
Ross Smotrich / Jeff Langbaum Barclays Capital 212.526.2306 / 212.526.0971	Sheila McGrath / Bill Carrier Keefe, Bruyette & Woods 212.887.7793 / 212.887.3810	Mark Streeter J.P. Morgan Securities 212.834.5086
Michael Bilerman / Joshua Attie Citigroup Global Markets 212.816.1383 / 212.816.1685	Jordan Sadler / Craig Mailman KeyBanc Capital Markets 917.368.2280 / 917.368.2316	Thierry Perrein / Jason Jones Wells Fargo 704.715.8455 / 704.715.7932
Steve Benyik Credit Suisse 212.538.0239	David Rodgers / Mike Carroll RBC Capital Markets 440.715.2647 / 440.715.2649
John Perry Deutsche Bank Securities 212.250.4912	Alexander Goldfarb / James Milam Sandler O’Neill & Partners 212.466.7937 / 212.466.8066
Jay Habermann / Sloan Bohlen Goldman Sachs & Company 917.343.4260 / 212.902.2796	John Guinee / Erin Aslakson Stifel, Nicolaus & Company 443.224.1307 / 443.224.1350

Michael Knott / Lukas Hartwich Green Street Advisors 949.640.8780 / 949.640.8780	Ross Nussbaum / Rob Salisbury UBS Securities 212.713.2484 / 212.713.4760
Steve Sakwa / Ian Weissman ISI Group 212.446.9462 / 212.446.9461

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

Boston Properties, Inc.

Fourth Quarter 2009

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 pages 49-50.


	Three Months Ended
	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
Selected Items:

Revenue	$	377,912		$	377,303		$	389,490		$	377,544		$	390,300
Straight-line rent (1)	$	13,279		$	16,224		$	12,966		$	16,081		$	15,989
Fair value lease revenue (1) (2)	$	23,705		$	24,343		$	25,421		$	24,660		$	27,696
Company share of funds from operations from unconsolidated joint ventures	$	31,469		$	37,612		$	33,447		$	36,473		$	(151,160	)
Lease termination fees (included in revenue) (1)	$	1,060		$	474		$	14,859		$	1,179		$	8,149
ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment (3)	$	9,893		$	9,848		$	9,470		$	9,430		$	9,280
Capitalized interest	$	11,637		$	12,982		$	12,087		$	12,110		$	13,076
Capitalized wages	$	2,929		$	3,037		$	2,923		$	2,375		$	2,988
Operating Margins [(rental revenue - rental expense)/rental revenue] (4)		66.9	%		65.9	%		68.2	%		67.6	%		68.3	%
Impairment losses on investments in unconsolidated joint ventures (5)	$	6,198		$	—		$	7,357		$	—		$	188,325
Net income (loss) attributable to Boston Properties, Inc.	$	53,317		$	65,795		$	67,152		$	44,598		$	(98,063	)
Funds from operations (FFO) attributable to Boston Properties, Inc.	$	146,056		$	158,450		$	166,668		$	134,847		$	(642	)
FFO per share - diluted	$	1.04		$	1.13		$	1.32		$	1.11		$	(0.01	)
Net income (loss) attributable to Boston Properties, Inc. per share - basic	$	0.38		$	0.47		$	0.54		$	0.37		$	(0.81	)
Net income (loss) attributable to Boston Properties, Inc. per share - diluted	$	0.38		$	0.47		$	0.53		$	0.37		$	(0.81	)
Dividends per common share	$	0.50		$	0.50		$	0.50		$	0.68		$	0.68
Funds available for distribution to common shareholders and common unitholders (FAD) (6)	$	120,838		$	129,195		$	141,494		$	129,807		$	133,970

Ratios:

Interest Coverage Ratio (excluding capitalized interest) - cash basis (7)		3.08			3.50			3.65			3.46			3.50
Interest Coverage Ratio (including capitalized interest) - cash basis (7)		2.67			2.92			3.09			2.93			2.93
FFO Payout Ratio		48.08	%		44.25	%		37.88	%		61.26	%		-6800.00	%
FAD Payout Ratio		66.29	%		61.89	%		56.54	%		74.76	%		72.15	%

	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
Capitalization:

Common Stock Price @ Quarter End	$	67.07		$	65.55		$	47.70		$	35.03		$	55.00
Equity Value @ Quarter End	$	10,836,567		$	10,583,834		$	7,696,157		$	5,046,737		$	7,892,335
Total Consolidated Debt	$	6,719,771		$	6,008,990		$	5,957,696		$	6,112,800		$	6,092,884
Total Consolidated Market Capitalization	$	17,556,338		$	16,592,824		$	13,653,853		$	11,159,537		$	13,985,219
Total Consolidated Debt/Total Consolidated Market Capitalization (8)		38.28	%		36.21	%		43.63	%		54.78	%		43.57	%
BXP's Share of Joint Venture Debt	$	1,555,494		$	1,555,560		$	1,555,344		$	1,554,546		$	1,554,508
Total Combined Debt	$	8,275,265		$	7,564,550		$	7,513,040		$	7,667,346		$	7,647,392
Total Combined Market Capitalization (9)	$	19,111,832		$	18,148,384		$	15,209,196		$	12,714,083		$	15,539,727
Total Combined Debt/Total Combined Market Capitalization (9) (10)		43.30	%		41.68	%		49.40	%		60.31	%		49.21	%

(1)	Includes the Company’s share of unconsolidated joint venture amounts. For additional detail, see page 17.

(2)	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.

(3)

During the first quarter of 2009, the Company adopted the provisions of Accounting Standards Codification (“ASC”) 470-20 “Debt with Conversion and Other Options,” formerly known as FASB Staff Position (“FSP”) No. APB 14-1 “Accounting for Convertible Debt Instruments That May Be Settled in Cash upon Conversion (Including Partial Cash Settlement)” (“FSP No. APB 14-1”) that requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) to be separately accounted for in a manner that reflects the issuer's nonconvertible debt borrowing rate.

(4)

Rental Expense consists of operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity and other amounts totaling $8,813, $9,641, $8,993, $9,311 and $9,854 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively. During the quarter ended December 31, 2008, the Company entered into an agreement to terminate its lease with Heller Ehrman LLP. During the quarter ended June 30, 2009, Lehman Brothers, Inc. rejected its lease in bankruptcy.

(5)

Represents the non-cash impairment losses on the Company’s investments in unconsolidated joint ventures in accordance with guidance included in ASC 323 “Investments-Equity Method and Joint Ventures” (formerly known as APB No. 18, “The Equity Method of Accounting for Investments in Common Stock”) and ASC 360 “Property, Plant and Equipment” (formerly known as SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”).

(6)	For a quantitative reconciliation of the differences between FAD and FFO, see page 11.

(7)	For additional detail, see page 11.

(8)	For disclosures related to our definition of Total Consolidated Debt to Total Consolidated Market Capitalization Ratio, see page 49.

(9)	For additional detail, see page 12.

(10)	For disclosures related to our definition of Total Combined Debt to Total Combined Market Capitalization Ratio, see page 49.

Boston Properties, Inc.

Fourth Quarter 2009

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
ASSETS
Real estate	$	9,817,388		$	9,768,619		$	9,687,069		$	9,577,375		$	9,560,924
Development in progress (1)		563,645			976,758			934,397			916,220			835,983
Land held for future development (1)		718,525			241,617			240,377			239,765			228,300
Less accumulated depreciation		(2,033,677	)		(1,966,780	)		(1,901,558	)		(1,835,283	)		(1,768,785	)

Total real estate		9,065,881			9,020,214			8,960,285			8,898,077			8,856,422
Cash and cash equivalents		1,448,933			782,106			819,245			143,789			241,510
Cash held in escrows		21,867			20,681			22,289			19,420			21,970
Marketable securities		9,946			10,436			11,173			9,408			11,590
Tenant and other receivables, net		93,240			71,845			78,495			69,116			68,743
Note receivable (2)		270,000			270,000			270,000			270,000			270,000
Accrued rental income, net		363,121			353,709			340,123			331,237			316,711
Deferred charges, net		294,395			288,642			283,830			301,889			325,369
Prepaid expenses and other assets		17,684			41,977			22,905			47,664			22,401
Investments in unconsolidated joint ventures		763,636			772,167			772,319			781,336			782,760

Total assets	$	12,348,703		$	11,631,777		$	11,580,664		$	10,871,936		$	10,917,476


LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable	$	2,643,301		$	2,643,497		$	2,603,597		$	2,669,705		$	2,660,642
Unsecured senior notes, net of discount		2,172,389			1,472,740			1,472,617			1,472,495			1,472,375
Unsecured exchangeable senior notes, net of discount (3)		1,904,081			1,892,753			1,881,482			1,870,600			1,859,867
Unsecured line of credit		—			—			—			100,000			100,000
Accounts payable and accrued expenses		220,089			229,177			223,909			200,269			171,791
Dividends and distributions payable		80,536			80,463			80,475			97,547			97,162
Accrued interest payable		76,058			49,536			66,463			50,329			67,132
Other liabilities		127,538			131,193			126,560			133,662			173,750

Total liabilities		7,223,992			6,499,359			6,455,103			6,594,607			6,602,719


Commitments and contingencies		—			—			—			—			—


Noncontrolling interest (4):
Redeemable preferred units of the Operating Partnership		55,652			55,652			55,652			55,652			55,652


Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
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, 138,880,010, 138,702,374, 138,548,661, 121,278,522 and 121,180,655 outstanding, respectively		1,389			1,387			1,385			1,213			1,212
Additional paid-in capital		4,373,679			4,362,874			4,353,410			3,555,274			3,559,841
Earnings in excess of dividends		95,433			111,463			115,027			117,082			154,953
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Accumulated other comprehensive loss		(21,777	)		(22,411	)		(23,044	)		(23,679	)		(24,291	)

Total stockholders’ equity attributable to Boston Properties, Inc.		4,446,002			4,450,591			4,444,056			3,647,168			3,688,993

Noncontrolling interests (4):
Common units of the Operating Partnership		617,386			620,460			620,752			568,849			563,212
Property partnerships		5,671			5,715			5,101			5,660			6,900


Total equity		5,069,059			5,076,766			5,069,909			4,221,677			4,259,105


Total liabilities and equity	$	12,348,703		$	11,631,777		$	11,580,664		$	10,871,936		$	10,917,476

(1)

At December 31, 2009, land held for future development includes land and improvement costs associated with the Company’s 250 West 55th Street project, which was previously included in development in progress. The Company announced in February 2009 that it was suspending construction of the 1,000,000 square foot office project and during the fourth quarter of 2009 the Company completed the construction of foundations and steel/deck to grade to facilitate a restart of construction in the future.

(2)	The note receivable consists of a partner loan from the Company to the unconsolidated joint venture entity that owns the General Motors Building. The unconsolidated entity has a corresponding note payable to the Company, see page 17.

(3)

During the first quarter 2009, the Company adopted ASC 470-20 (formerly known as FSP No. APB 14-1), which requires the liability and equity components of convertible debt instruments that may be settled in cash upon conversion (including partial cash settlement) to be separately accounted for in a manner that reflects the issuer’s nonconvertible debt borrowing rate. For additional detail, see page 12.

(4)

Effective January 1, 2009, the Company adopted a new accounting standard included in ASC 810 “Consolidation” (“ASC 810”) (formerly known as Statement of Financial Accounting Standard No. 160, “Noncontrolling Interests in Consolidated Financial Statements - an Amendment of ARB No. 51” (“SFAS No. 160”)) and ASC 480-10-S99 “Distinguishing Liabilities from Equity” (formerly known as EITF Topic No.D-98 “Classification and Measurement of Redeemable Securities” (Amended)), under which noncontrolling interests of the Company (previously known as “minority interests”) are reclassified either as a component of equity or in the mezzanine section of the balance sheet as temporary equity depending on the terms of such noncontrolling interests. Under ASC 810 (formerly known as SFAS No. 160), net income encompasses the total income of all consolidated subsidiaries and there is a separate disclosure of the attribution of that income between controlling and noncontrolling interests. The implementation of this standard had no effect on the Company’s results of operations.

Boston Properties, Inc.

Fourth Quarter 2009

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended

	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
Revenue:
Rental
Base Rent	$	295,448		$	291,602		$	304,864		$	293,517		$	300,544
Recoveries from tenants		46,769			51,901			49,821			52,408			50,032
Parking and other		15,357			15,883			18,416			16,941			17,663

Total rental revenue		357,574			359,386			373,101			362,866			368,239
Hotel revenue		10,277			6,650			7,396			6,062			12,158
Development and management services		8,277			9,754			8,551			8,296			9,024
Interest and other (1)		1,784			1,513			442			320			879

Total revenue		377,912			377,303			389,490			377,544			390,300


Expenses:
Operating		69,280			70,261			70,918			70,082			71,890
Real estate taxes		54,908			58,759			53,812			53,779			51,589
Hotel operating		7,717			5,418			5,359			5,472			8,846
General and administrative (1)		19,506			19,989			18,532			17,420			16,552
Interest (2) (3)		88,180			77,090			78,633			78,930			78,862
Depreciation and amortization		79,125			78,181			87,005			77,370			79,766
Loss from suspension of development		—			—			—			27,766			—
Net derivative losses		—			—			—			—			7,172
Losses from early extinguishments of debt		—			16			494			—			—
Losses (gains) from investments in securities (1)		(510	)		(1,317	)		(1,194	)		587			2,631

Total expenses		318,206			308,397			313,559			331,406			317,308

Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income (loss) attributable to noncontrolling interests		59,706			68,906			75,931			46,138			72,992
Income (loss) from unconsolidated joint ventures (4)		962			6,350			(351	)		5,097			(187,559	)
Gains on sales of real estate		2,078			2,394			4,493			2,795			1,946

Net income		62,746			77,650			80,073			54,030			(112,621	)
Net income (loss) attributable to noncontrolling interests (5):
Noncontrolling interests in property partnerships		(463	)		(1,114	)		(691	)		(510	)		(427	)
Noncontrolling interest - common units of the Operating Partnership (6)		(7,841	)		(9,662	)		(10,629	)		(7,531	)		16,339
Noncontrolling interest in gains on sales of real estate - common units of the
Operating Partnership (6)		(265	)		(307	)		(629	)		(401	)		(279	)
Noncontrolling interest - redeemable preferred units of the Operating Partnership		(860	)		(772	)		(972	)		(990	)		(1,075	)

Net income (loss) attributable to Boston Properties, Inc.	$	53,317		$	65,795		$	67,152		$	44,598		$	(98,063	)


INCOME (LOSS) PER SHARE OF COMMON STOCK (EPS)
Net income (loss) attributable to Boston Properties, Inc. per share - basic	$	0.38		$	0.47		$	0.54		$	0.37		$	(0.81	)

Net income (loss) attributable to Boston Properties, Inc. per share - diluted	$	0.38		$	0.47		$	0.53		$	0.37		$	(0.81	)

(1)

Losses (gains) from investments in securities includes $(486), $(1,285), $(1,036), $620 and $1,660, and general and administrative expense includes $444, $1,263, $1,126, $(392) and $(1,603) for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively, related to the Company's deferred compensation plan. Prior period quarterly amounts have been reclassified from interest and other revenue to losses (gains) from investments in securities to conform to the current period presentation.

(2)	Interest expense is reported net of capitalized interest of $11,637, $12,982, $12,087, $12,110 and $13,076 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(3)	Includes additional non-cash interest expense related to the adoption of ASC 470-20 (formerly known as FSP No. APB 14-1). For additional detail, see page 6.

(4)

Includes non-cash impairment losses aggregating approximately $6.2 million, $7.4 million and $188.3 million for the three months ended December 31, 2009, June 30, 2009 and December 31, 2008, respectively, in accordance with guidance included in ASC 323 “Investments-Equity Method and Joint Ventures” (formerly known as APB No. 18 “The Equity Method of Accounting for Investments in Common Stock”) and ASC 360 “Property, Plant and Equipment” (formerly known as SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”).

(5)

(6)

Equals noncontrolling interest - common units of the Operating Partnership’s share of 12.77%, 12.81%, 13.99%, 14.34% and 14.33% of income before net income attributable to noncontrolling interests in Operating Partnership after deduction for preferred distributions for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

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

Boston Properties, Inc.

Fourth Quarter 2009

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended

	31-Dec-09		30-Sep-09		30-Jun-09			31-Mar-09		31-Dec-08
Net income (loss) attributable to Boston Properties, Inc.	$	53,317	$	65,795	$	67,152		$	44,598	$	(98,063	)
Add:
Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership		265		307		629			401		279
Noncontrolling interest - common units of the Operating Partnership		7,841		9,662		10,629			7,531		(16,339	)
Noncontrolling interest - redeemable preferred units of the Operating Partnership		860		772		972			990		1,075
Noncontrolling interests in property partnerships		463		1,114		691			510		427
Less:
Income (loss) from unconsolidated joint ventures		962		6,350		(351	)		5,097		(187,559	)
Gains on sales of real estate		2,078		2,394		4,493			2,795		1,946

Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income (loss) attributable to noncontrolling interests		59,706		68,906		75,931			46,138		72,992
Add:
Real estate depreciation and amortization (1)		109,153		108,975		120,359			108,231		115,668
Income (loss) from unconsolidated joint ventures (2)		962		6,350		(351	)		5,097		(187,559	)
Less:
Noncontrolling interests in property partnerships' share of funds from operations		1,523		1,731		1,199			1,060		897
Noncontrolling interest - redeemable preferred units of the Operating Partnership		860		772		972			990		953

Funds from operations (FFO) attributable to the Operating Partnership		167,438		181,728		193,768			157,416		(749	)
Less:
Noncontrolling interest - common units of the Operating Partnership's share of funds from operations		21,382		23,278		27,100			22,569		(107	)

FFO attributable to Boston Properties, Inc. (3)	$	146,056	$	158,450	$	166,668		$	134,847	$	(642	)


FFO per share - basic (2)	$	1.05	$	1.14	$	1.33		$	1.11	$	(0.01	)

Weighted average shares outstanding - basic		138,761		138,641		125,267			121,256		120,788

FFO per share - diluted (2)	$	1.04	$	1.13	$	1.32		$	1.11	$	(0.01	)

Weighted average shares outstanding - diluted		140,920		140,686		127,081			122,929		120,788

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $79,125, $78,181, $87,005, $77,370 and $79,766, our share of unconsolidated joint venture real estate depreciation and amortization of $30,507, $31,262, $33,798, $31,376 and $36,399, less corporate related depreciation of $479, $468, $444, $515 and $497 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(2)

Includes non-cash impairment losses aggregating approximately $6.2 million, or $0.04 per share diluted, $7.4 million, or $0.05 per share diluted, and $188.3 million, or $1.33 per share diluted, for the three months ended December 31, 2009, June 30, 2009 and December 31, 2008, respectively, in accordance with guidance included in ASC 323 “Investments-Equity Method and Joint Ventures” (formerly known as APB No. 18 “The Equity Method of Accounting for Investments in Common Stock”) and ASC 360 “Property, Plant and Equipment” (formerly known as SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”).

(3)	Based on weighted average shares for the quarter. Company’s share for the quarter ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008 was 87.23%, 87.19%, 86.01%, 85.66% and 85.67%, respectively.

Boston Properties, Inc.

Fourth Quarter 2009

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	December 31, 2009			September 30, 2009			June 30, 2009			March 31, 2009			December 31, 2008
	Income (Numerator)		Shares/Units (Denominator)	Income (Numerator)		Shares/Units (Denominator)	Income (Numerator)		Shares/Units (Denominator)	Income (Numerator)		Shares/Units (Denominator)	Income (Numerator)			Shares/Units (Denominator)

Basic FFO	$	167,438	159,076	$	181,728	159,009	$	193,768	145,635	$	157,416	141,550	$	(749	)	140,993
Effect of Dilutive Securities
Convertible Preferred Units		860	1,461		772	1,461		972	1,461		990	1,461		—		—
Stock based compensation		—	698		—	584		—	353		—	212		—		—


Diluted FFO	$	168,298	161,235	$	182,500	161,054	$	194,740	147,449	$	158,406	143,223	$	(749	)	140,993

Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted funds from operations		21,204	20,315		23,080	20,368		26,901	20,368		22,446	20,294		(107	)	20,205


Company’s share of diluted FFO (1)	$	147,094	140,920	$	159,420	140,686	$	167,839	127,081	$	135,960	122,929	$	(642	)	120,788


FFO per share - basic	$	1.05		$	1.14		$	1.33		$	1.11		$	(0.01	)


FFO per share - diluted	$	1.04		$	1.13		$	1.32		$	1.11		$	(0.01	)

(1)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008 was 87.40 %, 87.35%, 86.19%, 85.83% and 85.74%, respectively.

Boston Properties, Inc.

Fourth Quarter 2009

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
Basic FFO (see page 9)	$	167,438		$	181,728		$	193,768		$	157,416		$	(749	)
2nd generation tenant improvements and leasing commissions		(28,886	)		(26,638	)		(34,102	)		(25,929	)		(19,445	)
Straight-line rent (1)		(13,279	)		(16,224	)		(12,966	)		(16,081	)		(15,989	)
Recurring capital expenditures		(8,854	)		(4,443	)		(5,702	)		(8,814	)		(12,158	)
Fair value interest adjustment (1)		1,755			1,723			1,562			1,490			1,084
ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment		9,893			9,848			9,470			9,430			9,280
Fair value lease revenue (1) (2)		(23,705	)		(24,343	)		(25,421	)		(24,660	)		(27,696	)
Hotel improvements, equipment upgrades and replacements		(198	)		(376	)		(279	)		(662	)		(589	)
Non real estate depreciation		479			468			444			515			497
Stock-based compensation		6,500			6,483			6,559			7,094			5,572
Net derivative losses (gains)		—			—			—			—			7,172
Impairment losses on investments in unconsolidated joint ventures (3)		6,198			—			7,357			—			188,325
Loss from suspension of development		—			—			—			27,766			—
Non-cash termination income (including fair value lease amounts)		—			—			(5,153	)		—			(2,023	)
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		3,497			969			5,957			2,242			689

Funds available for distribution to common shareholder and common unitholders (FAD)	$	120,838		$	129,195		$	141,494		$	129,807		$	133,970

*Interest Coverage Ratios* *(in thousands, except for ratio amounts)*
	Three Months Ended
	31-Dec-09			30-Sep-09			30-Jun-09			31-Mar-09			31-Dec-08
*Excluding Capitalized Interest*
Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income (loss) attributable to noncontrolling interests	$	59,706		$	68,906		$	75,931		$	46,138		$	72,992
Interest expense		88,180			77,090			78,633			78,930			78,862
Net derivative losses (gains)		—			—			—			—			7,172
Depreciation and amortization expense		79,125			78,181			87,005			77,370			79,766
Depreciation from joint ventures		30,507			31,262			33,798			31,376			36,399
Income (loss) from unconsolidated joint ventures		962			6,350			(351	)		5,097			(187,559	)
Impairment losses on investments in unconsolidated joint ventures (3)		6,198			—			7,357			—			188,325
Loss from suspension of development		—			—			—			27,766			—
Non-cash termination income (including fair value lease amounts)		—			—			(5,153	)		—			(2,023	)
Stock-based compensation		6,500			6,483			6,559			7,094			5,572
Straight-line rent (1)		(13,279	)		(16,224	)		(12,966	)		(16,081	)		(15,989	)
Fair value lease revenue (1) (2)		(23,705	)		(24,343	)		(25,421	)		(24,660	)		(27,696	)

Subtotal		234,194			227,705			245,392			233,030			235,821


Interest expense (4) (5)		76,033			65,120			67,269			67,374			67,439

Interest Coverage Ratio		3.08			3.50			3.65			3.46			3.50


*Including Capitalized Interest*
Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income (loss) attributable to noncontrolling interests	$	59,706		$	68,906		$	75,931		$	46,138		$	72,992
Interest expense		88,180			77,090			78,633			78,930			78,862
Net derivative losses (gains)		—			—			—			—			7,172
Depreciation and amortization expense		79,125			78,181			87,005			77,370			79,766
Depreciation from joint ventures		30,507			31,262			33,798			31,376			36,399
Income (loss) from unconsolidated joint ventures		962			6,350			(351	)		5,097			(187,559	)
Impairment losses on investments in unconsolidated joint ventures (3)		6,198			—			7,357			—			188,325
Loss from suspension of development		—			—			—			27,766			—
Non-cash termination income (including fair value lease amounts)		—			—			(5,153	)		—			(2,023	)
Stock-based compensation		6,500			6,483			6,559			7,094			5,572
Straight-line rent (1)		(13,279	)		(16,224	)		(12,966	)		(16,081	)		(15,989	)
Fair value lease revenue (1) (2)		(23,705	)		(24,343	)		(25,421	)		(24,660	)		(27,696	)

Subtotal		234,194			227,705			245,392			233,030			235,821

Divided by:
Interest expense (4) (5) (6)		87,670			78,102			79,356			79,484			80,515

Interest Coverage Ratio		2.67			2.92			3.09			2.93			2.93

(1)	Includes the Company’s share of unconsolidated joint venture amounts.

(2)	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.

(3)

(4)	Excludes the impact of the ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment of $9,893, $9,848, $9,470, $9,430 and $9,280 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(5)	Excludes amortization of financing costs of $2,254, $2,122, $1,894, $2,126 and $2,143 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

(6)	Interest expense is reported net of capitalized interest of $11,637, $12,982, $12,087, $12,110 and $13,076 for the three months ended December 31, 2009, September 30, 2009, June 30, 2009, March 31, 2009 and December 31, 2008, respectively.

Boston Properties, Inc.

Fourth Quarter 2009

CAPITAL STRUCTURE

Consolidated Debt

(in thousands)


	Aggregate Principal December 31, 2009
Mortgage Notes Payable	$	2,634,221
Unsecured Line of Credit		—
Unsecured Senior Notes, at face value		2,175,000
Unsecured Exchangeable Senior Notes, at face value		2,060,000

Total Debt		6,869,221
Fair Value Adjustment on Mortgage Notes Payable		9,080
Discount on Unsecured Senior Notes		(2,611	)
Discount on Unsecured Exchangeable Senior Notes		(15,529	)
ASC 470-20 (formerly known as FSP APB 14-1) Adjustment (1)		(140,390	)

Total Consolidated Debt	$	6,719,771


Boston Properties Limited Partnership Unsecured Senior Notes
Settlement Date		10/9/2009			5/22/2003			3/18/2003			1/17/2003			12/13/2002			Total/Average
Principal Amount	$	700,000		$	250,000		$	300,000		$	175,000		$	750,000		$	2,175,000
Yield (on issue date)		5.884	%		5.194	%		5.693	%		6.291	%		6.381	%		5.98	%
Coupon		5.875	%		5.000	%		5.625	%		6.250	%		6.250	%		5.90	%
Public Offering Price		99.931	%		99.329	%		99.898	%		99.763	%		99.650	%		99.75	%
Ratings:
Moody’s		Baa2 (negative)			Baa2 (negative)			Baa2 (negative)			Baa2 (negative)			Baa2 (negative)
S&P		A- (negative)			A- (negative)			A- (negative)			A- (negative)			A- (negative)
Fitch		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Maturity Date		10/15/2019			6/1/2015			4/15/2015			1/15/2013			1/15/2013
Discount	$	475		$	882		$	159		$	170		$	925		$	2,611

Unsecured Senior Notes, net of discount	$	699,525		$	249,118		$	299,841		$	174,830		$	749,075		$	2,172,389


Boston Properties Limited Partnership Unsecured Exchangeable Senior Notes
Settlement Date		8/19/2008			2/6/2007			4/6/2006									Total/Average
Principal Amount	$	747,500		$	862,500		$	450,000								$	2,060,000
Yield (on issue date)		4.037	%		3.462	%		3.787	%								3.742	%
GAAP Yield		6.555	%		5.630	%		5.958	%								6.037	%
Coupon		3.625	%		2.875	%		3.750	%
Exchange Rate		8.5051	(2)		7.0430	(3)		10.0066	(4)
First Optional Redemption Date		N/A			2/20/2012			5/18/2013
Maturity Date		2/15/2014			2/15/2037			5/15/2036
Discount	$	5,745		$	9,784		$	—								$	15,529
ASC 470-20 (FSP APB 14-1) Adjustment (1)	$	72,783		$	37,429		$	30,178								$	140,390

Unsecured Senior Exchangeable Notes	$	668,972		$	815,287		$	419,822								$	1,904,081


*Equity*
*(in thousands)*

										Shares/Units Outstanding as of 12/31/09			Common Stock Equivalents			Equivalent (5)
Common Stock											138,880			138,880	(6)	$	9,314,682
Common Operating Partnership Units											21,230			21,230	(7)		1,423,896
Series Two Preferred Operating Partnership Units											1,113			1,461			97,989

Total Equity														161,571		$	10,836,567

Total Consolidated Debt																	6,719,771

Total Consolidated Market Capitalization																$	17,556,338

BXP’s share of Joint Venture Debt																	1,555,494	(8)
Total Combined Debt (9)																	8,275,265

Total Combined Market Capitalization (10)																$	19,111,832

(1)

Represents the remaining debt discount which will be amortized over the period during which the exchangeable senior notes are expected to be outstanding (i.e., through the first optional redemption dates or, in the case of the exchangeable senior notes due 2014, the maturity date) as additional non-cash interest expense.

(2)

The initial exchange rate is 8.5051 shares per $1,000 principal amount of the notes (or an initial exchange price of approximately $117.58 per share of Boston Properties, Inc.’s common stock). In addition, the Company entered into capped call transactions with affiliates of certain of the initial purchasers, which are intended to reduce the potential dilution upon future exchange of the notes. The capped call transactions are expected to have the effect of increasing the effective exchange price to the Company of the notes from $117.58 to approximately $137.17 per share, representing an overall effective premium of approximately 40% over the closing price on August 13, 2008 of $97.98 per share of Boston Properties, Inc.’s common stock. The net cost of the capped call transactions was approximately $44.4 million.

(3)

In connection with the special dividend of $5.98 per share of common stock declared on December 17, 2007, the exchange rate was adjusted from 6.6090 to 7.0430 shares per $1,000 principal amount of notes effective as of December 31, 2007, resulting in an exchange price of approximately $141.98 per share of Boston Properties, Inc.’s common stock.

(4)

In connection with the special dividend of $5.98 per share of common stock declared on December 17, 2007, the exchange rate was adjusted from 9.3900 to 10.0066 shares per $1,000 principal amount of notes effective as of December 31, 2007, resulting in an exchange price of approximately $99.93 per share of Boston Properties, Inc.’s common stock.

(5)	Value based on December 31, 2009 closing price of $67.07 per share of common stock.

(6)	Includes 75 shares of restricted stock.

(7)	Includes 1,416 long-term incentive plan units, but excludes 1,081 unvested outperformance plan units.

(8)	Excludes the Company’s share ($270,000) of the aggregate of $450,000 of loans made to the joint venture that owns the General Motors Building by its partners.

(9)	For disclosures relating to our definition of Total Combined Debt, see page 49.

(10)	For disclosures relating to our definition of Total Combined Market Capitalization, see page 49.

Boston Properties, Inc.

Fourth Quarter 2009

DEBT ANALYSIS (1)

Debt Maturities and Principal Payments

(in thousands)


	2010			2011			2012			2013			2014			Thereafter			Total
Floating Rate Debt
Mortgage Notes Payable	$	246,252		$	97,169		$	345		$	827		$	48,828		$	—		$	393,421
Unsecured Line of Credit		—			—			—			—			—			—			—

Total Floating Debt	$	246,252		$	97,169		$	345		$	827		$	48,828		$	—		$	393,421

Fixed Rate Debt

Mortgage Notes Payable	$	101,130		$	549,209		$	105,059		$	100,436		$	76,409		$	1,308,557		$	2,240,800
Fair Value Adjustment		3,986			2,605			1,583			632			137			137			9,080

Mortgage Notes Payable		105,116			551,814			106,642			101,068			76,546			1,308,694			2,249,880

Unsecured Exchangeable Senior Notes, net of discount (2)		—			—			852,716			450,000			741,755			—			2,044,471

ASC 470-20 (formerly known as FSP APB 14-1) Adjustment		(41,195	)		(43,912	)		(29,793	)		(23,052	)		(2,438	)		—			(140,390	)

Unsecured Exchangeable Senior Notes		(41,195	)		(43,912	)		822,923			426,948			739,317			—			1,904,081

Unsecured Senior Notes, net of discount		—			—			—			923,905			—			1,248,484			2,172,389


Total Fixed Debt	$	63,921		$	507,902		$	929,565		$	1,451,921		$	815,863		$	2,557,178		$	6,326,350


Total Consolidated Debt	$	310,173		$	605,071		$	929,910		$	1,452,748		$	864,691		$	2,557,178		$	6,719,771

GAAP Weighted Average Floating Rate Debt		1.65	%		1.59	%		4.34	%		4.34	%		4.34	%		0.00	%		1.98	%
GAAP Weighted Average Fixed Rate Debt		7.68	%		7.02	%		5.64	%		6.22	%		6.48	%		5.86	%		6.12	%

Total GAAP Weighted Average Rate		3.45	%		6.20	%		5.64	%		6.22	%		6.35	%		5.86	%		5.87	%


Total Stated Weighted Average Rate		3.33	%		6.34	%		3.87	%		5.61	%		4.03	%		5.81	%		5.21	%

Unsecured Debt

Unsecured Line of Credit - Matures August 3, 2010 (3)

(in thousands)


Facility		Outstanding @ 12/31/09		Letters of Credit		Remaining Capacity @ 12/31/09
$	1,000,000	$	—	$	10,242	$	989,758

Unsecured and Secured Debt Analysis


	% of Total Debt		Stated Weighted Average Rate		GAAP Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	60.66	%	4.86	%	6.02	%	4.5	years
Secured Debt	39.34	%	5.75	%	5.65	%	4.6	years

Total Consolidated Debt	100.00	%	5.21	%	5.87	%	4.6	years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Stated Weighted Average Rate		GAAP Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	5.85	%	1.75	%	1.98	%	1.4	years
Fixed Rate Debt	94.15	%	5.43	%	6.12	%	4.8	years

Total Consolidated Debt	100.00	%	5.21	%	5.87	%	4.6	years

(1)	Excludes unconsolidated joint ventures.

(2)	For our unsecured exchangeable notes, amounts are included in the year in which the first optional redemption date occurs (or, in the case of the exchangeable notes due 2014, the year of maturity).

(3)	Subject to certain conditions, the Company may extend the maturity date of the Unsecured Line of Credit to August 3, 2011.

Boston Properties, Inc.

Fourth Quarter 2009

DEBT MATURITIES AND PRINCIPAL PAYMENTS (1)

(in thousands)


Property	2010			2011			2012			2013			2014			Thereafter			Total

599 Lexington Avenue	$	—		$	—		$	—		$	—		$	—		$	750,000		$	750,000
601 Lexington Avenue (formerly Citigroup Center)		9,517			456,633			—			—			—			—			466,150	(2)
Embarcadero Center Four		—			4,520			4,803			5,105			5,425			355,147			375,000
South of Market		187,377			—			—			—			—			—			187,377	(3)
505 9th Street		1,943			2,057			2,177			2,306			2,441			118,919			129,843
Wisconsin Place Office		—			97,169			—			—			—			—			97,169	(4)
One Freedom Square		1,408			1,521			65,511			—			—			—			68,440	(2)
New Dominion Technology Park, Building Two		—			—			—			—			63,000			—			63,000
Democracy Tower		58,875			—			—			—			—			—			58,875	(5)
202, 206 & 214 Carnegie Center		56,306			—			—			—			—			—			56,306
140 Kendrick Street		985			1,061			1,143			47,889			—			—			51,078	(2)
New Dominion Technology Park, Building One		1,715			1,846			1,987			2,140			2,304			40,975			50,967
Reservoir Place		—			—			345			827			48,828			—			50,000
1330 Connecticut Avenue		1,389			44,796			—			—			—			—			46,185	(2)
Kingstowne Two and Retail		1,446			1,535			1,630			1,730			1,837			31,227			39,405	(2)
10 & 20 Burlington Mall Rd & 91 Hartwell		1,062			32,618			—			—			—			—			33,680
Sumner Square		804			865			930			22,896			—			—			25,495
Montvale Center		—			—			25,000			—			—			—			25,000
Eight Cambridge Center		22,910			—			—			—			—			—			22,910
Kingstowne One		582			618			657			17,062			—			—			18,919	(2)
University Place		1,063			1,139			1,221			1,308			1,402			12,289			18,422
Atlantic Wharf (formerly Russia Wharf)		—			—			—			—			—			—			—	(6)

		347,382			646,378			105,404			101,263			125,237			1,308,557			2,634,221


Fair Value Adjustment		3,986			2,605			1,583			632			137			137			9,080

		351,368			648,983			106,987			101,895			125,374			1,308,694			2,643,301


Unsecured Exchangeable Senior Notes, net of discount								852,716			450,000			741,755			—			2,044,471	(7)

ASC 470-20 (formerly known as FSP APB 14-1) Adjustment		(41,195	)		(43,912	)		(29,793	)		(23,052	)		(2,438	)		—			(140,390	)

		(41,195	)		(43,912	)		822,923			426,948			739,317			—			1,904,081


Unsecured Senior Notes, net of discount		—			—			—			923,905			—			1,248,484			2,172,389
Unsecured Line of Credit		—			—			—			—			—			—			—	(8)


	$	310,173		$	605,071		$	929,910		$	1,452,748		$	864,691		$	2,557,178		$	6,719,771


% of Total Consolidated Debt		4.62	%		9.00	%		13.84	%		21.62	%		12.87	%		38.05	%		100.00	%
Balloon Payments	$	324,236		$	625,866		$	942,422		$	1,460,157		$	853,101		$	2,505,639		$	6,711,421
Scheduled Amortization	$	27,132		$	23,117		$	17,281		$	15,643		$	14,028		$	51,539		$	148,740

(1)	Excludes unconsolidated joint ventures. For information on our unconsolidated joint venture debt, see page 16.

(2)	This property has a fair value adjustment which is aggregated below.

(3)	Loan matures on November 21, 2010 and has a one-year extension option subject to certain conditions.

(4)	Loan matures on January 29, 2011 and has two, one-year extension options subject to certain conditions.

(5)	Loan matures on December 19, 2010 and has two, one-year extension options subject to certain conditions.

(6)	As of December 31, 2009, the Company has not drawn any amounts under its $215 million construction loan facility. Loan matures on April 21, 2012 and has two, one-year extension options subject to certain conditions.

(7)	For our unsecured exchangeable senior notes, amounts are included in the year in which the first optional redemption date occurs (or, in the case of the unsecured exchangeable senior notes due 2014, the year of maturity).

(8)	Unsecured Line of Credit matures on August 3, 2010 and has a one-year extension option subject to certain conditions.

Boston Properties, Inc.

Fourth Quarter 2009

Senior Unsecured Debt Covenant Compliance Ratios

(in thousands)

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

This section presents such ratios as of December 31, 2009 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.


		Senior Notes Issued Prior to October 9, 2009			Senior Notes Issued On October 9, 2009
		December 31, 2009

Total Assets:
Capitalized Property Value (1)		$	15,284,853		$	15,607,858
Cash and Cash Equivalents			1,448,933			1,448,933
Investments in Marketable Securities			9,946			9,946
Undeveloped Land, at Cost			718,525			718,525
Development in Process, at Cost (including Joint Venture %)			577,182			577,182

Total Assets		$	18,039,439		$	18,362,444


Unencumbered Assets		$	10,606,335		$	10,826,916


Secured Debt (Fixed and Variable) (2)		$	2,634,221		$	2,634,221
Joint Venture Debt			1,555,494			1,555,494
Contingent Liabilities & Letters of Credit			13,213			13,213
Unsecured Debt (3)			4,235,000			4,235,000

Total Outstanding Debt		$	8,437,928		$	8,437,928


Consolidated EBITDA:
Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and income (loss) attributable to noncontrolling interests (per Consolidated Income Statement)		$	59,706		$	59,706
Add: Interest Expense (per Consolidated Income Statement)			88,180			88,180
Add: Depreciation and Amortization (per Consolidated Income Statement)			79,125			79,125
Add: Losses (gains) from investments in securities			(510	)		(510	)

EBITDA			226,501			226,501
Add: Company share of unconsolidated joint venture EBITDA			62,168			62,168

Consolidated EBITDA		$	288,669		$	288,669


Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)		$	88,180		$	88,180
Add: Company share of unconsolidated joint venture interest expense			25,363			25,363
Less: Amortization of financing costs			(2,254	)		(2,254	)
Less: Interest expense funded by construction loan draws			—			—

Adjusted Interest Expense		$	111,289		$	111,289


Covenant Ratios and Related Data	Test	Actual			Actual
Total Outstanding Debt/Total Assets	Less than 60%		46.8	%		46.0	%
Secured Debt/Total Assets	Less than 50%		23.2	%		22.8	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		2.59			2.59
Unencumbered Assets/ Unsecured Debt	Greater than 150%		250.4	%		255.7	%



Unencumbered Consolidated EBITDA		$	160,040		$	160,040


Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			2.66			2.66


% of unencumbered Consolidated EBITDA to Consolidated EBITDA			55.4	%		55.4	%


# of unencumbered properties			103			103

(1)

For senior notes issued prior to October 9, 2009, Capitalized Property Value is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.5% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized Property Value for the 5.875% senior notes due 2019 that were issued on October 9, 2009 will be determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book values as determined under GAAP.

(2)	Excludes fair value adjustment of $9,080.

(3)	Excludes debt discount of $18,140 and ASC 470-20 (formerly known as FSP APB 14-1) adjustment of $140,390.

Boston Properties, Inc.

Fourth Quarter 2009

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments by Property

(in thousands)


Property	2010			2011			2012			2013			2014			Thereafter			Total

General Motors Building (60%)	$	—		$	—		$	—		$	—		$	—		$	963,600		$	963,600	(1) (2)
125 West 55th Street (60%)		158,100			—			—			—			—			—			158,100	(2)
Two Grand Central Tower (60%)		114,000			—			—			—			—			—			114,000	(2)
540 Madison Avenue (60%)		240			240			240			70,920			—			—			71,640	(3)
Metropolitan Square (51%)		63,437			—			—			—			—			—			63,437
Market Square North (50%)		41,549			—			—			—			—			—			41,549
901 New York Avenue (25%)		669			705			742			782			823			37,590			41,311
Annapolis Junction (50%)		21,349			—			—			—			—			—			21,349	(4)
Eighth Avenue and 46^th Street (50%)		11,800			—			—			—			—			—			11,800	(5)
Wisconsin Place Retail (5%)		3,077			—			—			—			—			—			3,077	(4)

		414,221			945			982			71,702			823			1,001,190			1,489,863

Fair Value Adjustment		2,090			7,182			6,620			7,102			7,186			29,403			59,583


	$	416,311		$	8,127		$	7,602		$	78,804		$	8,009		$	1,030,593		$	1,549,446


GAAP Weighted Average Rate		6.61	%		5.56	%		5.55	%		6.42	%		5.27	%		6.60	%		6.59	%

% of Total Debt		26.87	%		0.52	%		0.49	%		5.09	%		0.52	%		66.51	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Stated Weighted Average Rate (1)		GAAP Weighted Average Rate		Weighted Average Maturity

Floating Rate Debt	2.43	%	1.80	%	1.91	%	0.3	years
Fixed Rate Debt	97.57	%	6.02	%	6.71	%	5.6	years

Total Debt	100.00	%	5.92	%	6.59	%	5.4	years

(*)	All amounts represent the Company’s share. Amounts exclude the Value-Added Fund. See page 18 for additional information on debt pertaining to the Value-Added Fund.

(1)	Excludes the Company’s share ($270,000) of the aggregate of $450,000 of loans made to the joint venture by its partners.

(2)	This property has a fair value adjustment which is aggregated below. Although these mortgages require interest only payments with a balloon payment at maturity, the fair value adjustment is amortized over the term of the loan.

(3)	This property has a fair value adjustment which is aggregated below.

(4)	Debt has two, one-year extension options subject to certain conditions.

(5)	Debt has matured and the venture is negotiating an extension agreement with the lender.

Boston Properties, Inc.

Fourth Quarter 2009

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of December 31, 2009


	General Motors Building			125 West 55th Street			Two Grand Central Tower			540 Madison Avenue			Market Square North			Metropolitan Square			901 New York Avenue			Wisconsin Place (1)			Annapolis Junction (2)			Eighth Avenue and 46th Street (2)			Subtotal		Value- Added Fund (3)(4)			Total Unconsolidated Joint Ventures

Investment (5)	$	688,063	(6)	$	77,160		$	80,695		$	69,420		$	6,909		$	39,678		$	(1,114	)	$	55,429		$	7,615		$	(2,225	)	$	1,021,630	$	12,006		$	1,033,636

Note Receivable (6)		270,000			—			—			—			—			—			—			—			—			—			270,000		—			270,000


Net Equity	$	418,063		$	77,160		$	80,695		$	69,420		$	6,909		$	39,678		$	(1,114	)	$	55,429		$	7,615		$	(2,225	)	$	751,630	$	12,006		$	763,636


Mortgage/Construction loans payable (5) (7)	$	963,600		$	158,100		$	114,000		$	71,640		$	41,549		$	63,437		$	41,311		$	3,077		$	21,349		$	11,800		$	1,489,863	$	65,631		$	1,555,494


BXP’s nominal ownership percentage		60.00%			60.00	%		60.00	%		60.00	%		50.00	%		51.00	%		25.00	%		23.89	%		50.00	%		50.00	%				36.92	%

Results of Operations

(unaudited and in thousands)

for the three months ended December 31, 2009


	General Motors Building			125 West 55th Street			Two Grand Central Tower			540 Madison Avenue		Market Square North			Metropolitan Square		901 New York Avenue			Wisconsin Place (1)			Annapolis Junction (2)		Eighth Avenue and 46th Street (2)			Subtotal			Value- Added Fund (3)			Total Unconsolidated Joint Ventures

REVENUE
Rental	$	47,086		$	10,095		$	9,686		$	6,647	$	5,985		$	7,675	$	8,145		$	2,177		$	2,262	$	—		$	99,758		$	4,603		$	104,361
Straight-line rent		5,274			1,214			420			248		(275	)		479		88			95			12		—			7,555			146			7,701
Fair value lease revenue		33,831			622			1,765			670		—			—		—			—			—		—			36,888			474			37,362
Termination Income		—			—			246			—		—			33		3			—			—		—			282			—			282

Total revenue		86,191			11,931			12,117			7,565		5,710			8,187		8,236			2,272			2,274		—			144,483			5,223			149,706

EXPENSES
Operating		16,838			3,454			4,730			2,030		2,251			3,320		3,293			1,280			1,219		56			38,471			2,124			40,595


NET OPERATING INCOME		69,353			8,477			7,387			5,535		3,459			4,867		4,943			992			1,055		(56	)		106,012			3,099			109,111

Interest		26,260			4,703			2,908			1,909		1,580			2,563		2,173			492			189		150			42,927			2,748			45,675
Interest other - partner loans		13,947			—			—			—		—			—		—			—			—		—			13,947			—			13,947
Depreciation and amortization		36,402			3,960			4,626			2,324		1,212			1,799		1,445			1,578			601		—			53,947			2,452			56,399

SUBTOTAL		76,609			8,663			7,534			4,233		2,792			4,362		3,618			2,070			790		150			110,821			5,200			116,021

Gains on sale of real estate		—			—			—			—		—			—		—			—			—		—			—			—			—
Impairment loss (10)		—			—			—			—		—			—		—			—			—		—			—			24,568			24,568
Losses from early extinguishment of debt		—			—			—			—		—			—		—			—			—		—			—			—			—

NET INCOME/(LOSS)	$	(7,256	)	$	(186	)	$	(147	)	$	1,302	$	667		$	505	$	1,325		$	(1,078	)	$	265	$	(206	)	$	(4,809	)	$	(26,669	)	$	(31,478	)


BXP’s share of net income/(loss)	$	(4,354	)	$	(112	)	$	(89	)	$	781	$	333		$	258	$	781	(9)	$	(420	)	$	133	$	(103	)	$	(2,792	)	$	(6,801	)(4)	$	(9,594	)

Basis differential (8) (10)		—			476			1,216			369		—			—		—			—			—		—			2,061			2,154	(4)		4,215

Impairment loss on investment (10)		—			—			—			—		—			—		—			—			—		—			—			(2,028	)(4)		(2,028	)

Elimination of inter-entity interest on partner loan		8,368			—			—			—		—			—		—			—			—		—			8,368			—	(4)		8,368

Income/(loss) from unconsolidated joint ventures	$	4,014		$	364		$	1,127		$	1,150	$	333		$	258	$	781		$	(420	)	$	133	$	(103	)	$	7,637		$	(6,675	)(4)	$	962

BXP’s share of depreciation & amortization		21,841			1,982			1,997			1,132		606			917		517			467			300		—			29,759			748	(4)		30,507

BXP’s share of Funds from Operations (FFO)	$	25,855		$	2,346		$	3,124		$	2,282	$	939		$	1,175	$	1,298		$	47		$	433	$	(103	)	$	37,396		$	(5,927	)(4)	$	31,469


BXP’s share of net operating income/(loss)	$	41,612		$	5,168		$	4,870		$	3,428	$	1,730		$	2,482	$	1,236		$	71		$	528	$	(28	)	$	61,096		$	1,238	(4)	$	62,333

(1)

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 owns the office component of the project, of which the Company has a 66.67% interest, has been consolidated within the accounts of the Company. The Company’s 5% ownership interest in the retail component of the project is not included in the Company’s property listing (approximately 5,900 square feet represents our share).

(2)	Property is currently not in service (i.e., under construction or undeveloped land). Two of three land parcels of Annapolis Junction are undeveloped land.

(3)	For additional information on the Value-Added Fund, see page 18. Information presented includes costs which relate to the organization and operations of the Value-Added Fund.

(4)	Represents the Company’s 25% interest in 300 Billerica Road and Circle Star, as well as a 39.5% interest in Mountain View Research Park and Mountain View Technology Park.

(5)	Represents the Company’s share.

(6)	Includes the Company’s share ($270,000) of the aggregate of $450,000 of loans made to the joint venture by its partners.

(7)	Excludes fair value adjustments.

(8)	Represents adjustment related to the impairment of the carrying values of certain of the Company’s investments in unconsolidated joint ventures.

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

(10)

During the quarter, the Company’s Value-Added Fund recognized a non-cash impairment charge related to its One and Two Circle Star Way properties in San Carlos, California totaling approximately $24.6 million, of which the Company’s share after adjusting for prior investment write-downs of $2.0 million, was approximately $4.2 million. In addition, the Company recognized a non-cash impairment charge of approximately $2.0 million representing the other-than-temporary decline in the fair value below the remaining carrying value of its investment in the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

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 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.

On January 7, 2008, the Company transferred the Mountain View properties to its Value-Added Fund. In connection with the transfer of the Research Park and Technology Park properties to the Value-Added Fund, the Company and its partners agreed to certain modifications to the Value-Added Fund’s original terms, including bifurcating the Value-Added Fund’s promote structure such that Research Park and Technology Park will be accounted for separately from the non-Mountain View properties currently owned by the Value-Added Fund (i.e., Circle Star and 300 Billerica Road). As a result of the modifications, the Company’s interest in the Mountain View properties is approximately 39.5% and its interest in the non-Mountain View properties is 25%. The Company does not expect that the Value-Added Fund will make any future investments in new properties. The investments held by the Value-Added Fund are not included in the Company’s portfolio information tables or any other portfolio level statistics and therefore are presented below.

Property Information


Property Name	Number of Buildings	Square Feet	Leased %		Annual Revenue per leased SF (1)		Mortgage Notes Payable (2)

300 Billerica Road, Chelmsford, MA	1	110,882	100.0	%	$	9.03	$	1,875	(3)
Circle Star, San Carlos, CA	2	206,945	45.2	%		21.19		10,500	(4)
Mountain View Research Park, Mountain View, CA	16	600,449	73.7	%		30.81		43,681	(5)
Mountain View Technology Park, Mountain View, CA	7	135,279	57.6	%		25.61		9,575	(6)

Total	26	1,053,555	68.8	%	$	25.68	$	65,631

Results of Operations

(unaudited and in thousands)

for the three months ended December 31, 2009


	Value-Added Fund
REVENUE

Rental	$	4,603
Straight-line rent		146
Fair value lease revenue		474

Total revenue		5,223


EXPENSES
Operating		2,124


SUBTOTAL		3,099

Interest		2,748
Depreciation and amortization		2,452

SUBTOTAL		5,200

Gains on sale of real estate		—
Impairment loss		24,568
Loss from early extinguishment of debt		—

NET INCOME	$	(26,669	)


BXP’s share of net income	$	(6,801	)
Basis differential		2,154
Impairment loss on investment		(2,028	)

Loss from Value-Added Fund	$	(6,675	)
BXP’s share of depreciation & amortization		748

BXP’s share of Funds from Operations (FFO)	$	(5,927	)


The Company’s Equity in the Value-Added Fund	$	12,006

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Represents the Company’s share.

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

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

(5)

The mortgage bears interest at a variable rate of LIBOR plus 1.75% and matures on May 31, 2011, with two, one-year extension options. The Value-Added Fund has entered into three (3) interest rate swap contracts to fix the one-month LIBOR index rate at 3.63% per annum on an aggregate notional amount of $103 million. The swap contracts went into effect on June 2, 2008 and expire on April 1, 2011.

(6)

The mortgage bears interest at a variable rate of LIBOR plus 1.50% and matures on March 31, 2011, with two, one-year extension options. The Value-Added Fund has entered into an interest rate swap contract to fix the one-month LIBOR index rate at 4.085% per annum on a notional amount of $24 million. The swap contract went into effect on June 12, 2008 and expires on March 31, 2011.

Boston Properties, Inc.

Fourth Quarter 2009

PORTFOLIO OVERVIEW

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

for the Quarter Ended December 31, 2009 (1) (2) (3)


Geographic Area	Square Feet Office (3)		% of NOI Office (4)		Square Feet Office/ Technical		% of NOI Office/ Technical (4)		Square Feet Total (3)		Square Feet % of Total		% of NOI Hotel (4)		% of NOI Total (4)

Greater Boston	8,203,404		18.8	%	834,062		1.8	%	9,037,466		25.6	%	0.9	%	21.5	%
Greater Washington	9,180,624	(5)	21.0	%	825,232		1.0	%	10,005,856	(5)	28.3	%	—		22.0	%
Greater San Francisco	4,978,702		11.2	%	—		—		4,978,702		14.1	%	—		11.2	%
Midtown Manhattan	8,878,498	(6)	42.3	%	—		—		8,878,498	(6)	25.1	%	—		42.3	%
Princeton/East Brunswick, NJ	2,451,911		3.0	%	—		—		2,451,911		6.9	%	—		3.0	%

	33,693,139		96.3	%	1,659,294		2.8	%	35,352,433		100.0	%	0.9	%	100.0	%

% of Total	95.3	%			4.7	%			100.0	%

Percentage of Portfolio Net Operating Income of In-Service Properties

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


Geographic Area	CBD		Suburban		Total

Greater Boston	16.1	%	5.4	%	21.5	%
Greater Washington	8.3	%	13.7	%	22.0	%
Greater San Francisco	9.2	%	2.0	%	11.2	%
Midtown Manhattan	42.3	%	—		42.3	%
Princeton/East Brunswick, NJ	—		3.0	%	3.0	%

Total	75.9	%	24.1	%	100.0	%

Hotel Properties


Hotel Properties	Number of Rooms	Square Feet

Cambridge Center Marriott, Cambridge, MA	433	330,400

Total Hotel Properties	433	330,400

Structured Parking


	Number of Spaces	Square Feet

Total Structured Parking	36,940	12,789,161

(1)	For disclosures relating to our definition of In-Service Properties, see page 50.

(2)	Portfolio Net Operating Income is a non-GAAP financial measure. For a quantitative reconciliation of Portfolio NOI to net income availabe to common shareholders, see page 42. For disclosures relating to our use of Portfolio NOI see page 50.

(3)	Includes approximately 1,700,000 square feet of retail space.

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

(5)

Includes 586,885 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, 539,229 square feet at 901 New York Avenue which is 25% owned by Boston Properties, 321,943 square feet at 505 9th Street, N.W. which is 50% owned by Boston Properties, 117,599 square feet at Annapolis Junction which is 50% owned by Boston Properties and 299,136 square feet at Wisconsin Place which is 66.67% owned by Boston Properties.

(6)	Includes 1,777,639 square feet at the General Motors Building, 566,952 square feet at 125 West 55th Street, 637,482 square feet at Two Grand Central Tower and 288,340 square feet at 540 Madison Avenue, each of which is 60% owned by Boston Properties.

Boston Properties, Inc.

Fourth Quarter 2009

In-Service Property Listing

as of December 31, 2009


		Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF (1)		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	1,192,675	96.6	%	$	45.36	N	CBD
	111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	859,642	99.6	%		63.75	N	CBD
	101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,939	99.4	%		42.45	N	CBD
	The Shops at the Prudential Center	CBD Boston MA	1	510,029	99.0	%		71.49	N	CBD
	Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		49.37	N	CBD
	One Cambridge Center	East Cambridge MA	1	215,385	75.7	%		42.22	N	CBD
	Three Cambridge Center	East Cambridge MA	1	108,152	43.0	%		21.41	N	CBD
	Four Cambridge Center	East Cambridge MA	1	198,723	91.0	%		42.88	N	CBD
	Five Cambridge Center	East Cambridge MA	1	240,480	100.0	%		46.60	N	CBD
	Eight Cambridge Center	East Cambridge MA	1	177,226	100.0	%		40.50	Y	CBD
	Ten Cambridge Center	East Cambridge MA	1	152,664	100.0	%		40.55	N	CBD
	Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		49.02	N	CBD
	University Place	Mid-Cambridge MA	1	195,282	100.0	%		39.95	Y	CBD
	Reservoir Place	Route 128 Mass Turnpike MA	1	526,386	94.6	%		32.00	Y	S
	Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	100.0	%		29.16	N	S
	140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		31.59	Y	S
	230 CityPoint	Route 128 Mass Turnpike MA	1	299,944	92.5	%		35.27	N	S
(2)	77 CityPoint	Route 128 Mass Turnpike MA	1	209,707	100.0	%		42.83	N	S
(3)	Waltham Office Center	Route 128 Mass Turnpike MA	3	129,194	16.0	%		17.55	N	S
	195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		36.93	N	S
	200 West Street	Route 128 Mass Turnpike MA	1	248,951	33.2	%		31.02	N	S
	Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	80.4	%		36.55	N	S
	10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,216	84.6	%		25.16	Y	S
	Bedford Business Park	Route 128 Northwest MA	1	92,207	100.0	%		27.01	N	S
	32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		26.15	N	S
	91 Hartwell Avenue	Route 128 Northwest MA	1	121,425	40.4	%		30.11	Y	S
	92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		35.62	N	S
	100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		33.18	N	S
	33 Hayden Avenue	Route 128 Northwest MA	1	80,128	100.0	%		33.13	N	S
	Lexington Office Park	Route 128 Northwest MA	2	166,359	79.4	%		27.47	N	S
	191 Spring Street	Route 128 Northwest MA	1	158,900	100.0	%		31.44	N	S
	181 Spring Street	Route 128 Northwest MA	1	55,793	100.0	%		35.29	N	S
	201 Spring Street	Route 128 Northwest MA	1	106,300	100.0	%		32.62	N	S
	40 Shattuck Road	Route 128 Northwest MA	1	121,216	70.5	%		20.97	N	S
	Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		24.08	N	S

			42	8,203,404	91.0	%	$	42.68

Office/Technical
	Seven Cambridge Center	East Cambridge MA	1	231,028	100.0	%	$	83.17	N	CBD
	Fourteen Cambridge Center	East Cambridge MA	1	67,362	100.0	%		24.67	N	CBD
(3)	103 Fourth Avenue	Route 128 Mass Turnpike MA	1	62,476	58.5	%		24.57	N	S
	Bedford Business Park	Route 128 Northwest MA	2	379,056	69.3	%		18.53	N	S
	17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		15.25	N	S
	164 Lexington Road	Route 128 Northwest MA	1	64,140	0.0	%		—	N	S

			7	834,062	75.3	%	$	43.17


	Total Greater Boston:		49	9,037,466	89.6	%	$	42.72

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Not included in Same Property analysis.

(3)	Property held for redevelopment.

Boston Properties, Inc.

Fourth Quarter 2009

In-Service Property Listing (continued)

as of December 31, 2009


		Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF (1)		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Washington, DC
Office
	Capital Gallery	Southwest Washington DC	1	621,009	100.0	%	$	48.30	N	CBD
	500 E Street, S. W.	Southwest Washington DC	1	248,336	100.0	%		44.63	N	CBD
	Metropolitan Square (51% ownership)	East End Washington DC	1	586,885	99.9	%		50.78	Y	CBD
	1301 New York Avenue	East End Washington DC	1	188,357	100.0	%		45.86	N	CBD
	Market Square North (50% ownership)	East End Washington DC	1	401,279	98.3	%		58.05	Y	CBD
	505 9th Street, N.W. (50% ownership)	CBD Washington DC	1	321,943	96.0	%		61.72	Y	CBD
	901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	99.4	%		59.52	Y	CBD
	1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		47.17	N	CBD
	1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		55.65	Y	CBD
(3)	635 Massachusetts Avenue	CBD Washington DC	1	211,000	100.0	%		28.31	N	CBD
	Sumner Square	CBD Washington DC	1	208,665	100.0	%		45.58	Y	CBD
(2)	Annapolis Junction (50% ownership)	Arundel County, MD	1	117,599	58.1	%		140.71	Y	S
	Montvale Center	Montgomery County MD	1	123,317	80.2	%		26.54	Y	S
(2)	One Preserve Parkway	Montgomery County MD	1	183,192	20.1	%		38.74	N	S
	2600 Tower Oaks Boulevard	Montgomery County MD	1	178,917	88.7	%		40.22	N	S
(2)	Wisconsin Place (66.67% ownership)	Montgomery County MD	1	299,136	91.1	%		45.03	Y	S
(2)	Democracy Tower	Fairfax County VA	1	235,436	100.0	%		39.42	Y	S
	Kingstowne One	Fairfax County VA	1	150,838	100.0	%		35.99	Y	S
	Kingstowne Two	Fairfax County VA	1	156,251	98.2	%		36.95	Y	S
	Kingstowne Retail	Fairfax County VA	1	88,288	100.0	%		30.14	Y	S
	One Freedom Square	Fairfax County VA	1	414,433	94.2	%		42.49	Y	S
	Two Freedom Square	Fairfax County VA	1	421,253	99.4	%		45.14	N	S
	One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		29.92	N	S
	Two Reston Overlook	Fairfax County VA	1	134,615	93.3	%		32.21	N	S
	One and Two Discovery Square	Fairfax County VA	2	366,990	100.0	%		44.25	N	S
	New Dominion Technology Park - Building One	Fairfax County VA	1	235,201	100.0	%		33.01	Y	S
	New Dominion Technology Park - Building Two	Fairfax County VA	1	257,400	100.0	%		39.41	Y	S
	Reston Corporate Center	Fairfax County VA	2	261,046	100.0	%		33.96	N	S
(2)	South of Market	Fairfax County VA	3	648,279	91.8	%		43.54	Y	S
	12290 Sunrise Valley	Fairfax County VA	1	182,424	100.0	%		37.71	N	S
	12300 Sunrise Valley	Fairfax County VA	1	255,244	100.0	%		35.22	N	S
	12310 Sunrise Valley	Fairfax County VA	1	263,870	100.0	%		45.73	N	S

			36	9,180,624	95.8	%	$	45.33

Office/Technical
(3)	6601 Springfield Center Drive	Fairfax County VA	1	26,388	100.0	%	$	11.17	N	S
(3)	6605 Springfield Center Drive	Fairfax County VA	1	68,907	0.0	%		—	N	S
	7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		21.03	N	S
	7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		23.27	N	S
	7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		20.10	N	S
	7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		16.35	N	S
	8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		19.44	N	S
	7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		15.07	N	S
	7501 Boston Boulevard	Fairfax County VA	1	75,756	100.0	%		23.39	N	S
	7601 Boston Boulevard	Fairfax County VA	1	103,750	100.0	%		14.38	N	S
	7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		20.31	N	S
	8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		18.82	N	S
	7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		26.77	N	S

			13	825,232	91.6	%	$	18.96


	Total Greater Washington:		49	10,005,856	95.5	%	$	43.25

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Not included in Same Property analysis.

(3)	Property held for redevelopment.

Boston Properties, Inc.

Fourth Quarter 2009

In-Service Property Listing (continued)

as of December 31, 2009


		Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF (1)		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Midtown Manhattan
Office
	599 Lexington Avenue	Park Avenue NY	1	1,039,158	95.4	%	$	80.19	Y	CBD
	601 Lexington Avenue (formerly Citigroup Center)	Park Avenue NY	1	1,613,406	88.8	%		82.36	Y	CBD
	399 Park Avenue	Park Avenue NY	1	1,712,223	95.6	%		80.31	N	CBD
	Times Square Tower	Times Square NY	1	1,243,298	99.7	%		69.94	N	CBD
	General Motors Building (60% ownership)	Plaza District NY	1	1,777,639	98.1	%		109.04	Y	CBD
	125 West 55th Street (60% ownership)	Sixth/Rock Center NY	1	566,952	100.0	%		66.85	Y	CBD
	Two Grand Central Tower (60% ownership)	Grand Central District NY	1	637,482	94.5	%		56.22	Y	CBD
	540 Madison Avenue (60% ownership)	5th/Madison District NY	1	288,340	90.7	%		101.88	Y	CBD

	Total Midtown Manhattan:		8	8,878,498	95.4	%	$	83.10


Princeton/East Brunswick, NJ
Office
	101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	29.80	N	S
	104 Carnegie Center	Princeton NJ	1	102,830	97.2	%		35.66	N	S
	105 Carnegie Center	Princeton NJ	1	69,955	55.3	%		29.85	N	S
	201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		29.85	N	S
	202 Carnegie Center	Princeton NJ	1	130,582	76.4	%		33.66	Y	S
	206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		34.58	Y	S
	210 Carnegie Center	Princeton NJ	1	162,368	93.4	%		36.99	N	S
	211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		32.16	N	S
	212 Carnegie Center	Princeton NJ	1	149,354	79.1	%		37.80	N	S
	214 Carnegie Center	Princeton NJ	1	150,774	78.7	%		32.73	Y	S
	302 Carnegie Center	Princeton NJ	1	64,926	100.0	%		35.72	N	S
	502 Carnegie Center	Princeton NJ	1	118,473	91.1	%		36.10	N	S
	504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		29.25	N	S
	506 Carnegie Center	Princeton NJ	1	145,213	100.0	%		32.76	N	S
	508 Carnegie Center	Princeton NJ	1	128,662	57.8	%		32.66	N	S
	510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		29.66	N	S
(2)	701 Carnegie Center	Princeton NJ	1	120,000	100.0	%		35.00	N	S

			16	2,038,234	90.0	%	$	33.33


	One Tower Center	East Brunswick NJ	1	413,677	40.8	%	$	32.86	N	S

			1	413,677	40.8	%	$	32.86


	Total Princeton/East Brunswick, NJ:		17	2,451,911	81.7	%	$	33.29


Greater San Francisco
Office
	Embarcadero Center One	CBD San Francisco CA	1	833,723	86.8	%	$	48.71	N	CBD
	Embarcadero Center Two	CBD San Francisco CA	1	779,768	97.9	%		52.41	N	CBD
	Embarcadero Center Three	CBD San Francisco CA	1	775,086	84.7	%		43.67	N	CBD
	Embarcadero Center Four	CBD San Francisco CA	1	936,260	93.7	%		62.51	Y	CBD

			4	3,324,837	90.9	%	$	52.50


	611 Gateway	South San Francisco CA	1	256,302	100.0	%	$	33.79	N	S
	601 and 651 Gateway	South San Francisco CA	2	506,168	83.4	%		32.45	N	S
	303 Almaden	San Jose CA	1	156,859	94.1	%		33.91	N	CBD
(3)	North First Business Park	San Jose CA	5	190,636	75.8	%		16.12	N	S
	3200 Zanker Road	San Jose CA	4	543,900	100.0	%		14.72	N	S

			13	1,653,865	91.6	%	$	24.89


	Total Greater San Francisco:		17	4,978,702	91.1	%	$	43.24


	Total In-Service Properties:		140	35,352,433	92.4	%	$	52.84

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Not included in Same Property analysis.

(3)	Property held for redevelopment.

Boston Properties, Inc.

Fourth Quarter 2009

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED


	Tenant	Sq. Ft.			% of Portfolio
1	US Government	1,823,345	(1	)	5.17	%
2	Lockheed Martin	1,305,094			3.70	%
3	Citibank	1,047,687	(2	)	2.97	%
4	Genentech	565,791	(3	)	1.60	%
5	Kirkland & Ellis	557,392	(4	)	1.58	%
6	Procter & Gamble (Gillette)	484,051			1.37	%
7	Shearman & Sterling	472,808			1.34	%
8	Weil Gotshal Manges	456,744	(5	)	1.29	%
9	O’Melveny & Myers	446,039			1.26	%
10	Parametric Technology	380,987			1.08	%
11	Finnegan Henderson Farabow	356,195	(6	)	1.01	%
12	Accenture	354,854			1.01	%
13	Ann Taylor	338,942			0.96	%
14	Northrop Grumman	327,677			0.93	%
15	Biogen Idec MA	321,564			0.91	%
16	Washington Group International	299,079			0.85	%
17	Aramis (Estee Lauder)	295,610	(7	)	0.84	%
18	Bingham McCutchen	291,415			0.83	%
19	Akin Gump Strauss Hauer & Feld	290,132			0.82	%
20	Macquarie Holdings	286,288	(8	)	0.81	%

	Total % of Portfolio Square Feet				30.33	%
	Total % of Portfolio Revenue				31.48	%

Notable Signed Deals (9)


Tenant	Property		Sq. Ft.
Ropes & Gray LLP	Prudential Tower	(10)	479,000
Wellington Management	Atlantic Wharf (formerly Russia Wharf)		454,000
Biogen Idec	Weston Corporate Center		356,367
Hunton & Williams LLP	2200 Pennsylvania Avenue		189,806

(1)	Includes 116,353, 68,276 & 56,351 square feet of space in properties in which Boston Properties has a 60%, 51% and 50% interest, respectively.

(2)	Includes 10,080 & 2,761 square feet of space in properties in which Boston Properties has a 60% and 51% interest, respectively.

(3)	Excludes 55,860 square feet of expansion space at 601 Gateway executed in the third quarter of 2009.

(4)	Includes 256,904 square feet of space in a property in which Boston Properties has a 51% interest.

(5)	Includes 456,744 square feet of space in a property in which Boston Properties has a 60% interest.

(6)	Includes 258,990 square feet of space in a property in which Boston Properties has a 25% interest.

(7)	Includes 295,610 square feet of space in a property in which Boston Properties has a 60% interest.

(8)	Includes 261,387 square feet of space in a property in which Boston Properties has a 60% interest.

(9)	Represents leases signed with occupancy commencing in the future.

(10)	The space was occupied by Gillette through 12/31/09, Ropes & Gray’s lease commenced on 1/1/10.

TENANT DIVERSIFICATION (GROSS RENT) *

LOGO

*	The classification of the Company’s tenants is based on the U.S. Government’s North American Industry Classification System (NAICS), which has replaced the Standard Industrial Classification (SIC) system.


		23

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE OFFICE PROPERTIES

Lease Expirations (1) (2)


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

2010	2,747,520	$	115,707,924	$	42.11	$	118,596,066	$	43.16	8.54	%
2011	2,717,065		130,186,470		47.91		131,270,044		48.31	8.44	%
2012	2,899,995		139,426,011		48.08		142,304,269		49.07	9.01	%
2013	1,194,336		57,652,208		48.27		59,697,125		49.98	3.71	%
2014	3,003,045		126,881,343		42.25		136,816,715		45.56	9.33	%
2015	2,188,722		101,967,467		46.59		121,074,004		55.32	6.80	%
2016	2,345,016		116,380,241		49.63		127,202,330		54.24	7.29	%
2017	2,902,622		200,381,576		69.03		216,434,782		74.57	9.02	%
2018	514,272		38,875,595		75.59		44,013,049		85.58	1.60	%
2019	2,851,038		160,291,471		56.22		183,140,799		64.24	8.86	%
Thereafter	6,075,968		375,812,334		61.85		463,294,721		76.25	18.88	%

Occupancy By Location (3)


	CBD				Suburban				Total
Location	31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08

Midtown Manhattan	95.4	%	98.4	%	n/a		n/a		95.4	%	98.4	%
Greater Boston	95.9	%	96.3	%	85.1	%	93.3	%	91.0	%	95.0	%
Greater Washington	99.4	%	99.9	%	93.2	%	93.6	%	95.8	%	96.5	%
Greater San Francisco	91.0	%	91.5	%	91.3	%	95.8	%	91.1	%	92.8	%
Princeton/East Brunswick, NJ	n/a		n/a		81.7	%	83.8	%	81.7	%	83.8	%

Total Portfolio	95.5	%	97.1	%	88.5	%	91.9	%	92.8	%	95.2	%

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

(3)	Includes approximately 1,700,000 square feet of retail space.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE OFFICE/TECHNICAL PROPERTIES

Lease Expirations (1) (2)


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

2010	376,283	$	7,857,393	$	20.88	$	7,877,893	$	20.94	22.68	%
2011	83,709		1,231,835		14.72		1,236,995		14.78	5.04	%
2012	132,820		2,928,360		22.05		2,940,055		22.14	8.00	%
2013	7,479		145,626		19.47		154,488		20.66	0.45	%
2014	258,020		4,642,666		17.99		4,931,049		19.11	15.55	%
2015	23,439		454,154		19.38		511,832		21.84	1.41	%
2016	225,532		18,842,688		83.55		19,142,646		84.88	13.59	%
2017	—		—		—		—		—	0.00	%
2018	—		—		—		—		—	0.00	%
2019	—		—		—		—		—	0.00	%
Thereafter	237,776		4,868,418		20.47		5,187,306		21.82	14.33	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08

Midtown Manhattan	n/a		n/a		n/a		n/a		n/a		n/a
Greater Boston	100.0	%	100.0	%	61.5	%	56.8	%	75.3	%	72.3	%
Greater Washington	n/a		n/a		91.6	%	91.6	%	91.6	%	91.6	%
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	%	79.8	%	77.9	%	83.4	%	81.9	%

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE RETAIL PROPERTIES

Lease Expirations (1) (2)


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

2010	83,052	$	4,703,473	$	56.63	$	4,336,235	$	52.21	5.47	%
2011	63,615		5,798,453		91.15		5,881,239		92.45	4.19	%
2012	145,564		9,582,748		65.83		9,801,283		67.33	9.58	%
2013	72,578		6,287,360		86.63		6,393,942		88.10	4.78	%
2014	53,679		4,784,053		89.12		5,057,917		94.23	3.53	%
2015	142,698		11,463,805		80.34		14,089,024		98.73	9.39	%
2016	147,171		16,777,964		114.00		15,169,367		103.07	9.69	%
2017	106,895		6,894,939		64.50		7,370,748		68.95	7.04	%
2018	233,796		11,242,892		48.09		11,734,688		50.19	15.39	%
2019	54,600		3,623,185		66.36		4,264,946		78.11	3.59	%
Thereafter	415,685		24,332,843		58.54		30,816,037		74.13	27.36	%

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

GRAND TOTAL OF ALL

IN-SERVICE PROPERTIES

Lease Expirations (1) (2)


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

2010	3,206,855	$	128,268,790	$	40.00	$	130,810,194	$	40.79	9.1	%
2011	2,864,389		137,216,759		47.90		138,388,278		48.31	8.1	%
2012	3,178,379		151,937,120		47.80		155,045,606		48.78	9.0	%
2013	1,274,393		64,085,194		50.29		66,245,555		51.98	3.6	%
2014	3,314,744		136,308,062		41.12		146,805,681		44.29	9.4	%
2015	2,354,859		113,885,427		48.36		135,674,860		57.61	6.7	%
2016	2,717,719		152,000,893		55.93		161,514,343		59.43	7.7	%
2017	3,009,517		207,276,515		68.87		223,805,530		74.37	8.5	%
2018	748,068		50,118,488		67.00		55,747,737		74.52	2.1	%
2019	2,905,638		163,914,655		56.41		187,405,744		64.50	8.2	%
Thereafter	6,729,429		405,013,596		60.19		499,298,064		74.20	19.0	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08

Midtown Manhattan	95.4	%	98.4	%	n/a		n/a		95.4	%	98.4	%
Greater Boston	96.2	%	96.5	%	82.1	%	88.7	%	89.6	%	92.9	%
Greater Washington	99.4	%	99.9	%	93.0	%	93.3	%	95.5	%	96.1	%
Greater San Francisco	91.0	%	91.5	%	91.3	%	95.8	%	91.1	%	92.8	%
Princeton/East Brunswick, NJ	n/a		n/a		81.7	%	83.8	%	81.7	%	83.8	%

Total Portfolio	95.6	%	97.1	%	87.7	%	90.5	%	92.4	%	94.5	%

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER BOSTON PROPERTIES

Lease Expirations - Greater Boston (1) (2)


	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

2010	636,895	$	23,947,324	$	37.60	$	23,852,700	$	37.45		36,528	$	897,422	$	24.57	$	897,422	$	24.57
2011	1,033,195		43,160,570		41.77		43,181,605		41.79		—		—		—		—		—
2012	1,115,925		42,953,304		38.49		43,624,663		39.09		67,362		1,662,011		24.67		1,662,011		24.67
2013	492,273		21,078,931		42.82		22,034,616		44.76		—		—		—		—		—
2014	660,531		28,071,746		42.50		27,797,657		42.08		30,000		457,500		15.25		457,500		15.25
2015	616,594		21,431,589		34.76		23,848,471		38.68		—		—		—		—		—
2016	274,802		8,884,696		32.33		9,918,790		36.09		225,532		18,842,688		83.55		19,142,646		84.88
2017	328,513		15,019,234		45.72		17,416,114		53.01		—		—		—		—		—
2018	2,291		65,178		28.45		69,760		30.45		—		—		—		—		—
2019	606,203		25,499,300		42.06		28,212,516		46.54		—		—		—		—		—
Thereafter	840,853		40,589,182		48.27		55,467,573		65.97		237,776		4,868,418		20.47		5,187,306		21.82

	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

2010	10,021	$	2,243,505	$	223.88	$	1,876,267	$	187.23	(3)	683,444	$	27,088,251	$	39.63	$	26,626,389	$	38.96
2011	22,793		2,859,687		125.46		2,860,567		125.50	(4)	1,055,988		46,020,257		43.58		46,042,173		43.60
2012	61,410		2,323,955		37.84		2,323,955		37.84		1,244,697		46,939,270		37.71		47,610,629		38.25
2013	28,465		3,726,374		130.91		3,692,177		129.71		520,738		24,805,305		47.63		25,726,792		49.40
2014	16,269		2,051,248		126.08		2,078,878		127.78		706,800		30,580,493		43.27		30,334,034		42.92
2015	72,481		5,309,707		73.26		5,543,814		76.49		689,075		26,741,297		38.81		29,392,285		42.65
2016	14,617		1,832,081		125.34		1,910,346		130.69		514,951		29,559,465		57.40		30,971,781		60.15
2017	43,745		2,777,235		63.49		2,949,946		67.44		372,258		17,796,470		47.81		20,366,060		54.71
2018	178,454		8,141,977		45.63		8,199,179		45.95		180,745		8,207,155		45.41		8,268,940		45.75
2019	16,025		1,836,236		114.59		2,168,767		135.34		622,228		27,335,536		43.93		30,381,283		48.83
Thereafter	213,484		8,519,271		39.91		10,173,389		47.65		1,292,113		53,976,871		41.77		70,828,269		54.82

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

(3)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $38.80 per square foot and $38.80 per square foot in 2010.

(4)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $108.84 per square foot and $110.70 per square foot in 2011.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER BOSTON PROPERTIES

Quarterly Lease Expirations - Greater Boston (1) (2)


	OFFICE									OFFICE/TECHNICAL
Lease Expiration by Quarter	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 2010	105,561	$	4,103,025	$	38.87	$	5,976,565	$	56.62	—	$	—	$	—	$	—	$	—
Q2 2010	200,816		7,338,238		36.54		4,834,759		24.08	—		—		—		—		—
Q3 2010	182,829		6,865,305		37.55		7,382,580		40.38	36,528		897,422		24.57		897,422		24.57
Q4 2010	147,689		5,640,756		38.19		5,658,796		38.32	—		—		—		—		—

Total 2010	636,895	$	23,947,324	$	37.60	$	23,852,700	$	37.45	36,528	$	897,421.80	$	24.57	$	897,421.80	$	24.57


Q1 2011	175,170	$	6,513,502	$	37.18	$	6,554,364	$	37.42	—	$	—	$	—	$	—	$	—
Q2 2011	370,782		11,483,519		30.97		11,528,243		31.09	—		—		—		—		—
Q3 2011	334,766		18,747,520		56.00		18,524,912		55.34	—		—		—		—		—
Q4 2011	152,477		6,416,029		42.08		6,574,086		43.12	—		—		—		—		—

Total 2011	1,033,195	$	43,160,570	$	41.77	$	43,181,605	$	41.79	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Lease Expiration by Quarter	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 2010	6,425	$	1,025,998	$	159.69	$	814,418	$	126.76	111,986	$	5,129,023	$	45.80	$	6,790,983	$	60.64
Q2 2010	3,585		480,460		134.02		416,452		116.17	204,401		7,818,698		38.25		5,251,211		25.69
Q3 2010	8		602,950		75,368.75		511,300		63,912.50	219,365		8,365,676		38.14		8,791,301		40.08
Q4 2010	3		134,097		44,699.00		134,097		44,699.00	147,692		5,774,853		39.10		5,792,893		39.22

Total 2010	10,021	$	2,243,505	$	223.88	$	1,876,267	$	187.23	683,444	$	27,088,251	$	39.63	$	26,626,389	$	38.96


Q1 2011	11,312	$	1,418,461.56	$	125.39		1,367,462	$	120.89	186,482	$	7,931,963	$	42.53	$	7,921,826	$	42.48
Q2 2011	1,930		430,850		223.24		433,850		224.79	372,712		11,914,368		31.97		11,962,092		32.09
Q3 2011	—		—		—		—		—	334,766		18,747,520		56.00		18,524,912		55.34
Q4 2011	9,551		1,010,376		105.79		1,059,256		110.91	162,028		7,426,405		45.83		7,633,343		47.11

Total 2011	22,793	$	2,859,687	$	125.46	$	2,860,567	$	125.50	1,055,988	$	46,020,257	$	43.58	$	46,042,173	$	43.60

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

(3)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $38.80 per square foot and $38.80 per square foot in 2010.

(4)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $108.84 per square foot and $110.70 per square foot in 2011.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER WASHINGTON PROPERTIES

Lease Expirations - Greater Washington (1) (2)


	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

2010	842,173	$	40,360,491	$	47.92	$	43,000,021	$	51.06	339,755	$	6,959,971	$	20.49	$	6,980,471	$	20.55
2011	714,348		27,240,758		38.13		27,903,355		39.06	83,709		1,231,835		14.72		1,236,995		14.78
2012	896,843		38,645,365		43.09		39,922,074		44.51	65,458		1,266,349		19.35		1,278,044		19.52
2013	168,074		8,625,361		51.32		9,069,002		53.96	7,479		145,626		19.47		154,488		20.66
2014	988,007		38,397,820		38.86		46,614,273		47.18	228,020		4,185,166		18.35		4,473,549		19.62
2015	625,266		29,277,925		46.82		32,415,307		51.84	23,439		454,154		19.38		511,832		21.84
2016	373,669		14,690,870		39.32		17,244,695		46.15	—		—		—		—		—
2017	834,329		45,463,767		54.49		49,742,650		59.62	—		—		—		—		—
2018	288,337		14,255,729		49.44		17,268,298		59.89	—		—		—		—		—
2019	1,004,555		48,603,153		48.38		57,676,803		57.42	—		—		—		—		—
Thereafter	1,724,632		79,831,875		46.29		102,409,571		59.38	—		—		—		—		—

	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

2010	23,033	$	1,102,931	$	47.88	$	1,102,931	$	47.88	1,204,961	$	48,423,393	$	40.19	$	51,083,423	$	42.39
2011	14,295		700,683		49.02		706,911		49.45	812,352		29,173,276		35.91		29,847,261		36.74
2012	11,984		516,183		43.07		530,403		44.26	974,285		40,427,897		41.49		41,730,521		42.83
2013	8,199		409,728		49.97		437,382		53.35	183,752		9,180,716		49.96		9,660,871		52.58
2014	12,053		639,631		53.07		687,217		57.02	1,228,080		43,222,617		35.20		51,775,038		42.16
2015	23,599		1,096,782		46.48		1,194,183		50.60	672,304		30,828,861		45.86		34,121,322		50.75
2016	17,696		893,063		50.47		1,007,443		56.93	391,365		15,583,933		39.82		18,252,138		46.64
2017	24,412		1,091,931		44.73		1,187,104		48.63	858,741		46,555,698		54.21		50,929,754		59.31
2018	38,423		2,278,278		59.29		2,594,738		67.53	326,760		16,534,007		50.60		19,863,036		60.79
2019	29,933		1,214,764		40.58		1,386,955		46.34	1,034,488		49,817,917		48.16		59,063,758		57.09
Thereafter	116,414		3,841,777		33.00		4,893,001		42.03	1,841,046		83,673,652		45.45		107,302,573		58.28

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER WASHINGTON PROPERTIES

Quarterly Lease Expirations - Greater Washington (1) (2)


	OFFICE									OFFICE/TECHNICAL
Lease Expiration by Quarter	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 2010	83,922	$	4,184,165	$	49.86	$	4,184,165	$	49.86	128,447	$	3,170,013	$	24.68	$	3,170,013	$	24.68
Q2 2010	132,434		9,760,602		73.70		9,766,131		73.74	146,848		2,463,497		16.78		2,463,497		16.78
Q3 2010	536,341		21,748,924		40.55		24,344,756		45.39	33,400		683,590		20.47		683,590		20.47
Q4 2010	89,476		4,666,800		52.16		4,704,970		52.58	31,060		642,871		20.70		663,370		21.36

Total 2010	842,173	$	40,360,491	$	47.92	$	43,000,021	$	51.06	339,755	$	6,959,971	$	20.49	$	6,980,471	$	20.55


Q1 2011	329,003	$	10,064,954	$	30.59	$	10,283,582	$	31.26	57,321	$	937,043	$	16.35	$	937,043	$	16.35
Q2 2011	240,387		10,541,202		43.85		10,788,400		44.88	—		—		—		—		—
Q3 2011	14,833		614,825		41.45		629,664		42.45	26,388		294,792		11.17		299,952		11.37
Q4 2011	130,125		6,019,777		46.26		6,201,710		47.66	—		—		—		—		—

Total 2011	714,348	$	27,240,758	$	38.13	$	27,903,355	$	39.06	83,709	$	1,231,835	$	14.72	$	1,236,995	$	14.78


	Retail									Total Property Types
Lease Expiration by Quarter	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 2010	18,860	$	896,830	$	47.55	$	896,830	$	47.55	231,229	$	8,251,009	$	35.68	$	8,251,009	$	35.68
Q2 2010	—		—		—		—		—	279,282		12,224,099		43.77		9,888,510		43.79
Q3 2010	—		—		—		—		—	569,741		22,432,514		39.37		25,028,345		43.93
Q4 2010	4,173		206,100		49.39		206,100		49.39	124,709		5,515,771		44.23		5,574,440		44.70

Total 2010	23,033	$	1,102,931	$	47.88	$	1,102,931	$	47.88	1,204,961	$	48,423,393	$	40.19	$	51,083,423	$	42.39


Q1 2011	7,747	$	429,163	$	55.40	$	429,163	$	55.40	394,071	$	11,431,160	$	29.01	$	11,649,788	$	29.56
Q2 2011	—		—		—		—		—	240,387		10,541,202		43.85		10,788,400		44.88
Q3 2011	3,757		151,655		40.37		155,979		41.52	44,978		1,061,272		23.60		1,085,594		24.14
Q4 2011	2,791		119,865		42.95		121,770		43.63	132,916		6,139,642		46.19		6,323,479		47.58

Total 2011	14,295	$	700,683	$	49.02	$	706,911	$	49.45	812,352	$	29,173,276	$	35.91	$	29,847,261	$	36.74

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Lease Expirations - Greater San Francisco (1) (2)


	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

2010	714,710	$	15,803,046	$	22.11	$	16,001,790	$	22.39	—	$	—	$	—	$	—	$	—
2011	391,347		25,976,843		66.38		26,267,638		67.12	—		—		—		—		—
2012	259,409		12,593,619		48.55		13,219,328		50.96	—		—		—		—		—
2013	217,948		9,658,841		44.32		10,033,375		46.04	—		—		—		—		—
2014	485,280		20,330,738		41.89		20,632,709		42.52	—		—		—		—		—
2015	405,030		17,270,680		42.64		17,180,352		42.42	—		—		—		—		—
2016	974,131		39,566,112		40.62		42,400,429		43.53	—		—		—		—		—
2017	209,663		9,458,279		45.11		10,122,689		48.28	—		—		—		—		—
2018	58,268		3,538,883		60.73		3,990,655		68.49	—		—		—		—		—
2019	80,697		3,548,816		43.98		3,871,604		47.98	—		—		—		—		—
Thereafter	437,235		24,570,440		56.20		27,531,238		62.97	—		—		—		—		—

	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

2010	49,447	$	1,253,128	$	25.34	$	1,253,128	$	25.34	764,157	$	17,056,174	$	22.32	$	17,254,918	$	22.58
2011	10,397		543,998		52.32		562,813		54.13	401,744		26,520,841		66.01		26,830,451		66.78
2012	35,001		2,513,655		71.82		2,658,950		75.97	294,410		15,107,274		51.31		15,878,278		53.93
2013	34,232		1,980,808		57.86		2,080,280		60.77	252,180		11,639,649		46.16		12,113,654		48.04
2014	14,339		797,621		55.63		852,282		59.44	499,619		21,128,359		42.29		21,484,991		43.00
2015	34,130		1,740,606		51.00		1,873,598		54.90	439,160		19,011,286		43.29		19,053,950		43.39
2016	23,477		1,070,199		45.59		1,167,716		49.74	997,608		40,636,312		40.73		43,568,145		43.67
2017	12,053		686,164		56.93		740,229		61.41	221,716		10,144,443		45.75		10,862,918		48.99
2018	16,919		822,637		48.62		940,770		55.60	75,187		4,361,520		58.01		4,931,425		65.59
2019	5,642		288,737		51.18		343,122		60.82	86,339		3,837,553		44.45		4,214,725		48.82
Thereafter	—		—		—		—		—	437,235		24,570,440		56.20		27,531,238		62.97

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Quarterly Lease Expirations - Greater San Francisco (1) (2)


	OFFICE									OFFICE/TECHNICAL
Lease Expiration by Quarter	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 2010	10,287	$	439,435	$	42.72	$	439,435	$	42.72	—	$	—	$	—	$	—	$	—
Q2 2010	71,957		3,473,164		48.27		3,473,164		48.27	—		—		—		—		—
Q3 2010	23,516		1,238,439		52.66		1,238,439		52.66	—		—		—		—		—
Q4 2010	608,950		10,652,008		17.49		10,850,752		17.82	—		—		—		—		—

Total 2010	714,710	$	15,803,046	$	22.11	$	16,001,790	$	22.39	—	$	—	$	—	$	—	$	—


Q1 2011	18,639	$	833,000	$	44.69	$	843,905	$	45.28	—	$	—	$	—	$	—	$	—
Q2 2011	48,830		2,617,049		53.60		2,649,206		54.25	—		—		—		—		—
Q3 2011	130,534		11,293,611		86.52		11,312,083		86.66	—		—		—		—		—
Q4 2011	193,344		11,233,184		58.10		11,462,445		59.29	—		—		—		—		—

Total 2011	391,347	$	25,976,843	$	66.38	$	26,267,638	$	67.12	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Lease Expiration by Quarter	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 2010	3,666	$	181,075	$	49.39	$	181,075	$	49.39	13,953	$	620,510	$	44.47	$	620,510	$	44.47
Q2 2010	420		41,341		98.43		41,341		98.43	72,377		3,514,505		48.56		3,514,505		48.56
Q3 2010	1,463		75,434		51.56		75,434		51.56	24,979		1,313,873		52.60		1,313,873		52.60
Q4 2010	43,898		955,278		21.76		955,278		21.76	652,848		11,607,286		17.78		11,806,030		18.08

Total 2010	49,447	$	1,253,128	$	25.34	$	1,253,128	$	25.34	764,157	$	17,056,174	$	22.32	$	17,254,918	$	22.58


Q1 2011	6,935	$	349,291	$	50.37	$	351,691	$	50.71	25,574	$	1,182,290	$	46.23	$	1,195,596		46.75
Q2 2011	—		—		—		—		—	48,830		2,617,049		53.60		2,649,206		54.25
Q3 2011	180		26,423		146.80		27,102		150.57	130,714		11,320,034		86.60		11,339,185		86.75
Q4 2011	3,282		168,284		51.27		184,020		56.07	196,626		11,401,468		57.99		11,646,465		59.23

Total 2011	10,397	$	543,998	$	52.32	$	562,813	$	54.13	401,744	$	26,520,841	$	66.01	$	26,830,451	$	66.78

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Lease Expirations - Midtown Manhattan (1) (2)


	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

2010	419,566	$	30,700,194	$	73.17	$	30,844,688	$	73.52	—	$	—	$	—	$	—	$	—
2011	253,934		22,154,643		87.25		22,213,253		87.48	—		—		—		—		—
2012	578,174		43,471,203		75.19		43,775,684		75.71	—		—		—		—		—
2013	125,448		11,825,047		94.26		11,825,047		94.26	—		—		—		—		—
2014	208,425		18,007,113		86.40		18,555,108		89.03	—		—		—		—		—
2015	385,305		29,187,828		75.75		42,416,091		110.08	—		—		—		—		—
2016	660,066		51,252,346		77.65		55,401,583		83.93	—		—		—		—		—
2017	1,409,007		126,374,954		89.69		134,635,539		95.55	—		—		—		—		—
2018	165,376		21,015,806		127.08		22,684,336		137.17	—		—		—		—		—
2019	1,010,823		78,294,443		77.46		88,500,071		87.55	—		—		—		—		—
Thereafter	2,953,248		226,620,837		76.74		273,206,338		92.51	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot

2010	551	$	103,909	$	188.58	$	103,909	$	188.58	420,117	$	30,804,104	$	73.32	$	30,948,597	$	73.67
2011	16,130		1,694,085		105.03		1,750,947		108.55	270,064		23,848,728		88.31		23,964,200		88.74
2012	37,169		4,228,955		113.78		4,287,975		115.36	615,343		47,700,158		77.52		48,063,659		78.11
2013	1,682		170,449		101.34		184,104		109.46	127,130		11,995,496		94.36		12,009,151		94.46
2014	11,018		1,295,553		117.59		1,439,541		130.65	219,443		19,302,666		87.96		19,994,649		91.12
2015	12,488		3,316,710		265.59		5,477,428		438.62	397,793		32,504,538		81.71		47,893,520		120.40
2016	91,381		12,982,621		142.07		11,083,863		121.29	751,447		64,234,967		85.48		66,485,446		88.48
2017	26,685		2,339,609		87.68		2,493,468		93.44	1,435,692		128,714,563		89.65		137,129,007		95.51
2018	—		—		—		—		—	165,376		21,015,806		127.08		22,684,336		137.17
2019	3,000		283,447		94.48		366,102		122.03	1,013,823		78,577,890		77.51		88,866,173		87.65
Thereafter	85,787		11,971,795		139.55		15,749,647		183.59	3,039,035		238,592,632		78.51		288,955,984		95.08

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Quarterly Lease Expirations - Midtown Manhattan (1) (2)


	OFFICE									OFFICE/TECHNICAL
Lease Expiration by Quarter	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 2010	94,457	$	7,652,755	$	81.02	$	7,652,755	$	81.02	—	$	—	$	—	$	—	$	—
Q2 2010	33,655		1,788,117		53.13		1,791,118		53.22	—		—		—		—		—
Q3 2010	152,899		9,983,950		65.30		10,114,150		66.15	—		—		—		—		—
Q4 2010	138,555		11,275,372		81.38		11,286,665		81.46	—		—		—		—		—

Total 2010	419,566	$	30,700,194	$	73.17	$	30,844,688	$	73.52	—	$	—	$	—	$	—	$	—


Q1 2011	63,250	$	4,693,935	$	74.21	$	4,696,802	$	74.26	—	$	—	$	—	$	—	$	—
Q2 2011	82,781		7,024,296		84.85		7,080,039		85.53	—		—		—		—		—
Q3 2011	42,850		3,404,159		79.44		3,404,159		79.44	—		—		—		—		—
Q4 2011	65,053		7,032,254		108.10		7,032,254		108.10	—		—		—		—		—

Total 2011	253,934	$	22,154,643	$	87.25	$	22,213,253	$	87.48	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Lease Expiration by Quarter	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 2010	—	$	—	$	—	$	—	$	—	94,457	$	7,652,755	$	81.02	$	7,652,755	$	81.02
Q2 2010	—		—		—		—		—	33,655		1,788,117		53.13		1,791,118		53.22
Q3 2010	—		—		—		—		—	152,899		9,983,950		65.30		10,114,150		66.15
Q4 2010	551		103,909		188.58		103,909		188.58	139,106		11,379,281		81.80		11,390,575		81.88

Total 2010	551	$	103,909	$	188.58	$	103,909	$	188.58	420,117	$	30,804,104	$	73.32	$	30,948,597	$	73.67


Q1 2011	715	$	101,066	$	141.35	$	101,066	$	141.35	63,965	$	4,795,001	$	74.96	$	4,797,867	$	75.01
Q2 2011	2,800		405,135		144.69		405,135		144.69	85,581		7,429,431		86.81		7,485,174		87.46
Q3 2011	3,465		551,862		159.27		590,575		170.44	46,315		3,956,021		85.42		3,994,734		86.25
Q4 2011	9,150		636,022		69.51		654,172		71.49	74,203		7,668,276		103.34		7,686,426		103.59

Total 2011	16,130	$	1,694,085	$	105.03	$	1,750,947	$	108.55	270,064	$	23,848,728	$	88.31	$	23,964,200	$	88.74

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

Lease Expirations - Princeton/East Brunswick (1) (2)


	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

2010	134,176	$	4,896,868	$	36.50	$	4,896,868	$	36.50	—	$	—	$	—	$	—	$	—
2011	324,241		11,653,656		35.94		11,704,192		36.10	—		—		—		—		—
2012	49,644		1,762,520		35.50		1,762,520		35.50	—		—		—		—		—
2013	190,593		6,464,027		33.92		6,735,086		35.34	—		—		—		—		—
2014	660,802		22,073,925		33.40		23,216,968		35.13	—		—		—		—		—
2015	156,527		4,799,445		30.66		5,213,783		33.31	—		—		—		—		—
2016	62,348		1,986,217		31.86		2,236,834		35.88	—		—		—		—		—
2017	121,110		4,065,342		33.57		4,517,790		37.30	—		—		—		—		—
2018	—		—		—		—		—	—		—		—		—		—
2019	148,760		4,345,760		29.21		4,879,805		32.80	—		—		—		—		—
Thereafter	120,000		4,200,000		35.00		4,680,000		39.00	—		—		—		—		—

	Retail									Total Property Types
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot

2010	—	$	—	$	—	$	—	$	—	134,176	$	4,896,868	$	36.50	$	4,896,868	$	36.50
2011	—		—		—		—		—	324,241		11,653,656		35.94		11,704,192		36.10
2012	—		—		—		—		—	49,644		1,762,520		35.50		1,762,520		35.50
2013	—		—		—		—		—	190,593		6,464,027		33.92		6,735,086		35.34
2014	—		—		—		—		—	660,802		22,073,925		33.40		23,216,968		35.13
2015	—		—		—		—		—	156,527		4,799,445		30.66		5,213,783		33.31
2016	—		—		—		—		—	62,348		1,986,217		31.86		2,236,834		35.88
2017	—		—		—		—		—	121,110		4,065,342		33.57		4,517,790		37.30
2018	—		—		—		—		—	—		—		—		—		—
2019	—		—		—		—		—	148,760		4,345,760		29.21		4,879,805		32.80
Thereafter	—		—		—		—		—	120,000		4,200,000		35.00		4,680,000		39.00
	—		—		—		—		—

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

Quarterly Lease Expirations - Princeton/East Brunswick (1) (2)


	OFFICE									OFFICE/TECHNICAL
Lease Expiration by Quarter	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 2010	6,029	$	155,750	$	25.83	$	155,750	$	25.83	—	$	—	$	—	$	—	$	—
Q2 2010	11,901		390,058		32.78		390,058		32.78	—		—		—		—		—
Q3 2010	5,260		193,070		36.71		193,070		36.71	—		—		—		—		—
Q4 2010	110,986		4,157,989		37.46		4,157,989		37.46	—		—		—		—		—

Total 2010	134,176	$	4,896,868	$	36.50	$	4,896,868	$	36.50	—	$	—	$	—	$	—	$	—


Q1 2011	131,110	$	4,755,643	$	36.27	$	4,768,746	$	36.37	—	$	—	$	—	$	—	$	—
Q2 2011	—		—		—		—		—	—		—		—		—		—
Q3 2011	115,536		4,143,054		35.86		4,163,045		36.03	—		—		—		—		—
Q4 2011	77,595		2,754,959		35.50		2,772,401		35.73	—		—		—		—		—

Total 2011	324,241	$	11,653,656	$	35.94	$	11,704,192	$	36.10	—	$	—	$	—	$	—	$	—


	Retail									Total Property Types
Lease Expiration by Quarter	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 2010	—	$	—	$	—	$	—	$	—	6,029	$	155,750	$	25.83	$	155,750	$	25.83
Q2 2010	—		—		—		—		—	11,901		390,058		32.78		390,058		32.78
Q3 2010	—		—		—		—		—	5,260		193,070		36.71		193,070		36.71
Q4 2010	—		—		—		—		—	110,986		4,157,989		37.46		4,157,989		37.46

Total 2010	—	$	—	$	—	$	—	$	—	134,176	$	4,896,868	$	36.50	$	4,896,868	$	36.50


Q1 2011	—	$	—	$	—	$	—	$	—	131,110	$	4,755,643	$	36.27	$	4,768,746	$	36.37
Q2 2011	—		—		—		—		—	—		—		—		—		—
Q3 2011	—		—		—		—		—	115,536		4,143,054		35.86		4,163,045		36.03
Q4 2011	—		—		—		—		—	77,595		2,754,959		35.50		2,772,401		35.73

Total 2011	—	$	—	$	—	$	—	$	—	324,241	$	11,653,656	$	35.94	$	11,704,192	$	36.10

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

CBD PROPERTIES

Lease Expirations (1) (2)


	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

2010	252,512	$	13,398,548	$	53.06	$	12,123,225	$	48.01	211,970	$	11,054,656	$	52.15	$	11,085,458	$	52.30
2011	552,577		31,971,776		57.86		31,874,749		57.68	74,772		3,905,491		52.23		3,970,362		53.10
2012	444,069		21,204,492		47.75		21,248,832		47.85	187,586		8,461,401		45.11		8,588,132		45.78
2013	297,209		17,987,145		60.52		18,544,014		62.39	34,014		1,657,899		48.74		1,776,138		52.22
2014	490,096		24,349,011		49.68		23,829,378		48.62	551,823		21,989,605		39.85		28,605,178		51.84
2015	307,866		15,056,234		48.91		16,142,816		52.43	339,429		19,214,853		56.61		21,231,898		62.55
2016	296,421		22,627,319		76.34		23,222,789		78.34	57,782		2,805,966		48.56		3,215,094		55.64
2017	218,659		12,775,489		58.43		14,670,149		67.09	782,697		42,985,352		54.92		46,661,974		59.62
2018	178,454		8,141,977		45.63		8,199,179		45.95	66,223		4,156,588		62.77		4,848,048		73.21
2019	357,425		16,361,206		45.78		18,438,567		51.59	696,330		35,843,833		51.48		44,873,584		64.44
Thereafter	1,054,337		49,108,453		46.58		65,640,962		62.26	858,305		45,672,964		53.21		58,920,935		68.65

	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

2010	420,117	$	30,804,104	$	73.32	$	30,948,597	$	73.67	188,630	$	8,108,128	$	42.98	$	8,108,128	$	42.98
2011	270,064		23,848,728		88.31		23,964,200		88.74	316,966		24,725,318		78.01		24,898,431		78.55
2012	615,343		47,700,158		77.52		48,063,659		78.11	255,867		13,828,521		54.05		14,516,164		56.73
2013	127,130		11,995,496		94.36		12,009,151		94.46	216,061		10,694,362		49.50		11,088,190		51.32
2014	219,443		19,302,666		87.96		19,994,649		91.12	243,317		12,466,990		51.24		12,239,253		50.30
2015	397,793		32,504,538		81.71		47,893,520		120.40	213,662		11,764,800		55.06		10,753,276		50.33
2016	751,447		64,234,967		85.48		66,485,446		88.48	869,220		37,450,123		43.08		39,885,685		45.89
2017	1,435,692		128,714,563		89.65		137,129,007		95.51	202,675		9,504,665		46.90		10,076,073		49.72
2018	165,376		21,015,806		127.08		22,684,336		137.17	75,187		4,361,520		58.01		4,931,425		65.59
2019	1,013,823		78,577,890		77.51		88,866,173		87.65	86,339		3,837,553		44.45		4,214,725		48.82
Thereafter	3,039,035		238,592,632		78.51		288,955,984		95.08	437,235		24,570,440		56.20		27,531,238		62.97

	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

2010	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
2015	—		—		—		—		—	—		—		—		—		—
2016	—		—		—		—		—	—		—		—		—		—
2017	—		—		—		—		—	—		—		—		—		—
2018	—		—		—		—		—	—		—		—		—		—
2019	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	—		—		—		—		—

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

SUBURBAN PROPERTIES

Lease Expirations (1) (2)


	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

2010	430,932	$	13,689,703	$	31.77	$	14,503,163	$	33.66	992,991	$	37,368,737	$	37.63	$	39,997,965	$	40.28
2011	503,411		14,048,481		27.91		14,167,423		28.14	737,580		25,267,785		34.26		25,876,900		35.08
2012	800,628		25,734,779		32.14		26,361,797		32.93	786,699		31,966,496		40.63		33,142,389		42.13
2013	223,529		6,818,161		30.50		7,182,778		32.13	149,738		7,522,816		50.24		7,884,732		52.66
2014	216,704		6,231,482		28.76		6,504,656		30.02	676,257		21,233,013		31.40		23,169,860		34.26
2015	381,209		11,685,062		30.65		13,249,470		34.76	332,875		11,614,008		34.89		12,889,424		38.72
2016	218,530		6,932,146		31.72		7,748,992		35.46	333,583		12,777,967		38.31		15,037,044		45.08
2017	153,599		5,020,980		32.69		5,695,912		37.08	76,044		3,570,345		46.95		4,267,780		56.12
2018	2,291		65,178		28.45		69,760		30.45	260,537		12,377,419		47.51		15,014,988		57.63
2019	264,803		10,974,330		41.44		11,942,716		45.10	338,158		13,974,084		41.32		14,190,174		41.96
Thereafter	237,776		4,868,418		20.47		5,187,306		21.82	982,741		38,000,688		159.82		48,381,638		49.23

	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

2010	—	$	—	$	—	$	—	$	—	575,527	$	8,948,046	$	15.55	$	9,146,790	$	15.89
2011	—		—		—		—		—	84,778		1,795,524		21.18		1,932,021		22.79
2012	—		—		—		—		—	38,543		1,278,753		33.18		1,362,114		35.34
2013	—		—		—		—		—	36,119		945,287		26.17		1,025,465		28.39
2014	—		—		—		—		—	256,302		8,661,369		33.79		9,245,737		36.07
2015	—		—		—		—		—	225,498		7,246,486		32.14		8,300,675		36.81
2016	—		—		—		—		—	128,388		3,186,189		24.82		3,682,460		28.68
2017	—		—		—		—		—	19,041		639,778		33.60		786,846		41.32
2018	—		—		—		—		—	—		—		—		—		—
2019	—		—		—		—		—	—		—		—		—		—
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

2010	134,176	$	4,896,868	$	36.50	$	4,896,868	$	36.50	—	$	—	$	—	$	—	$	—
2011	324,241		11,653,656		35.94		11,704,192		36.10	—		—		—		—		—
2012	49,644		1,762,520		35.50		1,762,520		35.50	—		—		—		—		—
2013	190,593		6,464,027		33.92		6,735,086		35.34	—		—		—		—		—
2014	660,802		22,073,925		33.40		23,216,968		35.13	—		—		—		—		—
2015	156,527		4,799,445		30.66		5,213,783		33.31	—		—		—		—		—
2016	62,348		1,986,217		31.86		2,236,834		35.88	—		—		—		—		—
2017	121,110		4,065,342		33.57		4,517,790		37.30	—		—		—		—		—
2018	—		—		—		—		—	—		—		—		—		—
2019	148,760		4,345,760		29.21		4,879,805		32.80	—		—		—		—		—
Thereafter	120,000		4,200,000		35.00		4,680,000		39.00	—		—		—		—		—

(1)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(2)	Includes 100% of unconsolidated joint venture properties. Does not include any data on properties owned by the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

HOTEL PERFORMANCE

Cambridge Center Marriott


	Fourth Quarter 2009			Fourth Quarter 2008			Percent Change		Year to Date 2009			Year To Date 2008			Percent Change

Occupancy		74.4	%		74.6	%	-0.3	%		75.1	%		77.7	%	-3.3	%

Average Daily Rate	$	198.88		$	230.67		-13.8	%	$	185.29		$	217.70		-14.9	%

Revenue per available room	$	147.94		$	172.15		-14.1	%	$	139.19		$	169.08		-17.7	%

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾ - By Location


	CBD				Suburban				Total
Location	31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08

Greater Boston	96.2	%	96.5	%	81.2	%	88.1	%	89.3	%	92.7	%
Greater Washington	99.4	%	99.9	%	96.7	%	97.1	%	97.9	%	98.4	%
Midtown Manhattan	95.4	%	98.4	%	n/a		n/a		95.4	%	98.4	%
Princeton/East Brunswick, NJ	n/a		n/a		80.7	%	83.8	%	80.7	%	83.8	%
Greater San Francisco	91.0	%	91.5	%	91.3	%	95.8	%	91.1	%	92.8	%

Total Portfolio	95.6	%	97.1	%	88.1	%	91.6	%	92.8	%	95.1	%

Same Property Occupancy⁽¹⁾ - By Type of Property


	CBD				Suburban				Total
	31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08		31-Dec-09		31-Dec-08

Total Office Portfolio	95.5	%	97.1	%	89.1	%	93.3	%	93.3	%	95.7	%
Total Office/Technical Portfolio	100.0	%	100.0	%	79.8	%	77.9	%	83.4	%	81.9	%

Total Portfolio	95.6	%	97.1	%	88.1	%	91.6	%	92.8	%	95.1	%

(1)	For disclosures related to our definition of Same Property, see page 50.

Boston Properties, Inc.

Fourth Quarter 2009

SAME PROPERTY PERFORMANCE

Office, Office/Technical and Hotel Properties


	Office		Office/Technical		Hotel (1)		Total
Number of Properties	111		20		1		132
Square feet	31,867,750		1,659,294		330,400		33,857,444
Percent of in-service properties	94.6	%	100.0	%	100.0	%	94.9	%
Occupancy @ 12/31/08	95.7	%	81.9	%	—		95.1	%
Occupancy @ 12/31/09	93.3	%	83.4	%	—		92.8	%
Percent change from 4th quarter 2009 over 4th quarter 2008 (2):
Rental revenue	-3.7	%	-3.4	%	-15.5	%
Operating expenses and real estate taxes	-1.5	%	-2.3	%	-12.8	%
Consolidated Net Operating Income (3) - excluding hotel							-4.9	%(2)
Consolidated Net Operating Income (3) - Hotel							-22.7	%(2)
Net Operating Income - BXP’s share of unconsolidated joint ventures (3) (4)							-0.1	%(2)
Portfolio Net Operating Income (3)							-4.1	%

Rental revenue - cash basis	-3.5	%	1.4	%	-15.5	%
Consolidated Net Operating Income (3) - cash basis (5) excluding hotel	-4.7	%	3.0	%			-4.4	%(2)
Consolidated Net Operating Income (3) - cash basis (5) - Hotel							-22.7	%(2)
Net Operating Income - cash basis (5) - BXP’s share of unconsolidated joint ventures							12.2	%(2)
Portfolio Net Operating Income (3) - cash basis (5)							-2.7	%

Same Property Lease Analysis - quarter ended December 31, 2009


	Office			Office/Technical			Total
Vacant space available @ 10/1/2009 (sf)		2,177,584			300,275			2,477,859
Square footage of leases expiring or terminated 10/1/2009-12/31/2009		1,063,196			49,968			1,113,164

Total space for lease (sf)		3,240,780			350,243			3,591,023

New tenants (sf)		721,824			25,000			746,824
Renewals (sf)		379,030			49,968			428,998

Total space leased (sf)		1,100,854			74,968			1,175,822

Space available @ 12/31/2009 (sf)		2,139,926			275,275			2,415,201

Net (increase)/decrease in available space (sf)		37,658			25,000			62,658
2nd generation Average lease term (months)		79			15			75
2nd generation Average free rent (days)		64			—			60
2nd generation TI/Comm PSF	$	26.24		$	—		$	25.02
Increase (decrease) in 2nd generation gross rents (6)		-7.82	%		-5.70	%		-7.78	%
Increase (decrease) in 2nd generation net rents (6)		-13.13	%		-7.15	%		-13.01	%

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

(2)	See page 43 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 42. For disclosures relating to our use of Portfolio NOI and Consolidated NOI, see page 50.

(4)	For disclosures related to the calculation of NOI from unconsolidated joint ventures, see page 17.

(5)	For a quantitative reconciliation of NOI to NOI on a cash basis, see page 43.

(6)	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 1,067,063 square feet.

Boston Properties, Inc.

Fourth Quarter 2009

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	December 31, 2009			December 31, 2008
	*(in thousands)*

Net income (loss) attributable to Boston Properties, Inc.	$	53,317		$	(98,063	)
Net income (loss) attributable to noncontrolling interests:
Noncontrolling interest - redeemable preferred units of the Operating Partnership		860			1,075
Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership		265			279
Noncontrolling interest - common units of the Operating Partnership		7,841			(16,339	)
Noncontrolling interests in property partnerships		463			427
Gains on sales of real estate		(2,078	)		(1,946	)
Income (loss) from unconsolidated joint ventures		(962	)		187,559

Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and income (loss) attributable to noncontrolling interests		59,706			72,992

Add:
Losses (gains) from investments in securities		(510	)		2,631
Loss from early extinguishment of debt		—			—
Net derivative losses (gains)		—			7,172
Depreciation and amortization		79,125			79,766
Interest expense		88,180			78,862
General and administrative expense		19,506			16,552

Subtract:
Interest and other income		(1,784	)		(879	)
Development and management services income		(8,277	)		(9,024	)


Consolidated Net Operating Income		235,946			248,072
Net Operating Income from unconsolidated joint ventures (BXP’s share) (1)		62,333			61,757

Combined Net Operating Income		298,279			309,829
Subtract:
Net Operating Income from Value-Added Fund (BXP’s share)		(1,238	)		(1,328	)

Portfolio Net Operating Income	$	297,042		$	308,501


Same Property Net Operating Income		282,821			294,958
Net operating income from non Same Properties (2)		13,161			5,566
Termination income		1,060			7,977

Portfolio Net Operating Income	$	297,042		$	308,501


Same Property Net Operating Income		282,821			294,958
Less straight-line rent and fair value lease revenue		34,620			39,829

Same Property Net Operating Income - cash basis	$	248,201		$	255,129

(1)	For disclosures related to the calculation of Net Operating Income from unconsolidated joint ventures, see page 17.

(2)	Pages 20-22 indicate by footnote the properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Fourth Quarter 2009

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical
	For the three months ended				$ Change			% Change		For the three months ended						$ Change			% Change
	31-Dec-09		31-Dec-08		$ Change			% Change		31-Dec-09			31-Dec-08			$ Change			% Change
Rental Revenue	$	329,030	$	348,604						$	11,657		$	12,068
Less Termination Income		894		7,713							—			—


Rental revenue - subtotal		328,136		340,891		(12,755	)	-3.7	%		11,657			12,068			(411	)	-3.4	%

Operating expenses and real estate taxes		116,512		118,284		(1,772	)	-1.5	%		3,369			3,448			(79	)	-2.3	%


Net Operating Income (1)	$	211,624	$	222,607	$	(10,983	)	-4.9	%	$	8,288		$	8,620		$	(332	)	-3.9	%


Rental revenue - subtotal	$	328,136	$	340,891						$	11,657		$	12,068

Less straight line rent and fair value lease revenue		7,422		8,395		(973	)	-11.6	%		19			590			(571	)	-96.8	%


Rental revenue - cash basis		320,714		332,496		(11,782	)	-3.5	%		11,638			11,478			160		1.4	%

Less:
Operating expenses and real estate taxes		116,512		118,284		(1,772	)	-1.5	%		3,369			3,448			(79	)	-2.3	%


Net Operating Income (2) - cash basis	$	204,202	$	214,212	$	(10,010	)	-4.7	%	$	8,269		$	8,030		$	239		3.0	%


	Sub-Total									Hotel
	For the three months ended				$ Change			% Change		For the three months ended						$ Change			% Change
	31-Dec-09		31-Dec-08		$ Change			% Change		31-Dec-09			31-Dec-08			$ Change			% Change
Rental Revenue	$	340,687	$	360,672						$	10,277		$	12,158
Less Termination Income		894		7,713							—			—


Rental revenue - subtotal		339,793		352,959		(13,166	)	-3.7	%		10,277			12,158		$	(1,881	)	-15.5	%

Operating expenses and real estate taxes		119,881		121,732		(1,851	)	-1.5	%		7,717			8,846			(1,129	)	-12.8	%


Net Operating Income (1)	$	219,912	$	231,227	$	(11,315	)	-4.9	%	$	2,560		$	3,312		$	(752	)	-22.7	%


Rental revenue - subtotal	$	339,793	$	352,959						$	10,277		$	12,158

Less straight line rent and fair value lease revenue		7,441		8,985		(1,544	)	-17.2	%		(1	)		(1	)		—		0.0	%


Rental revenue - cash basis		332,352		343,974		(11,622	)	-3.4	%		10,278			12,159			(1,881	)	-15.5	%

Less:
Operating expenses and real estate taxes		119,881		121,732		(1,851	)	-1.5	%		7,717			8,846			(1,129	)	-12.8	%


Net Operating Income (2) - cash basis	$	212,471	$	222,242	$	(9,771	)	-4.4	%	$	2,561		$	3,313		$	(752	)	-22.7	%


	Unconsolidated Joint Ventures (3)									Total
	For the three months ended				$			%		For the three months ended						$			%
	31-Dec-09		31-Dec-08		Change			Change		31-Dec-09			31-Dec-08			Change			Change
Rental Revenue	$	80,588	$	80,391						$	431,552		$	453,221
Less Termination Income		166		264							1,060			7,977


Rental revenue - subtotal		80,422		80,127	$	295		0.4	%		430,492			445,244			(14,752	)	-3.3	%

Operating expenses and real estate taxes		20,073		19,708		365		1.9	%		147,671			150,286			(2,615	)	-1.7	%


Net Operating Income (1)	$	60,349	$	60,419	$	(70	)	-0.1	%	$	282,821		$	294,958		$	(12,137	)	-4.1	%


Rental revenue - subtotal	$	80,422	$	80,127						$	430,492		$	445,244

Less straight line rent and fair value lease revenue		27,180		30,845		(3,665	)	-11.9	%		34,620			39,829			(5,209	)	-13.1	%


Rental revenue - cash basis		53,242		49,282		3,960		8.0	%		395,872			405,415			(9,543	)	-2.4	%

Less:
Operating expenses and real estate taxes		20,073		19,708		365		1.9	%		147,671			150,286			(2,615	)	-1.7	%


Net Operating Income (2) - cash basis	$	33,169	$	29,574	$	3,595		12.2	%	$	248,201		$	255,129		$	(6,928	)	-2.7	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income available to common shareholders, see page 42. For disclosures relating to our use of NOI see page 50.

(2)	For a quantitative reconciliation of NOI to NOI on a cash basis see page 42. For disclosures relating to our use of NOI see page 50.

(3)	Does not include the Value-Added Fund.

Boston Properties, Inc.

Fourth Quarter 2009

LEASING ACTIVITY

All In-Service Properties - quarter ended December 31, 2009


	Office			Office/Technical			Total
Vacant space available @ 10/1/2009 (sf)		2,469,818			300,275			2,770,093
Property dispositions/ assets taken out of service (sf)		—			—			—
Property acquisitions/ assets placed in-service (sf)		—			—			—
Leases expiring or terminated 10/1/2009-12/31/2009 (sf)		1,062,926			49,968			1,112,894

Total space for lease (sf)		3,532,744			350,243			3,882,987

New tenants (sf)		738,150			25,000			763,150
Renewals (sf)		379,030			49,968			428,998

Total space leased (sf)		1,117,180			74,968			1,192,148	(1)

Space available @ 12/31/2009 (sf)		2,415,564			275,275			2,690,839

Net (increase)/decrease in available space (sf)		54,254			25,000			79,254
2nd generation Average lease term (months)		80			15			76
2nd generation Average free rent (days)		66			—			61
2nd generation TI/Comm PSF	$	26.24		$	—		$	25.02
Increase (decrease) in 2nd generation gross rents (2)		-7.82	%		-5.70	%		-7.78	%
Increase (decrease) in 2nd generation net rents (3)		-13.13	%		-7.15	%		-13.01	%


	All leases 1st Generation	All leases 2nd Generation	Incr (decr) in 2nd gen. gross cash rents (2)		Incr (decr) in 2nd gen. net cash rents (3)		Total Leased (4)	Total square feet of leases executed in the quarter (5)
Boston	—	290,090	-13.61	%	-20.85	%	290,090	400,466
Washington	16,326	481,625	5.52	%	8.91	%	497,951	573,235
New York	—	227,023	-17.13	%	-27.89	%	227,023	292,933
San Francisco	—	167,482	-12.15	%	-19.39	%	167,482	125,186
Princeton	—	9,602	-7.55	%	-11.24	%	9,602	14,302

	16,326	1,175,822	-7.78	%	-13.01	%	1,192,148	1,406,122

(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 1,067,063.

(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 1,067,063.

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

(5)	Represents leases executed in the quarter for which the GAAP impact may be recognized in the current or future quarters, including properties currently under development. The total square feet of leases executed in the current quarter and recognized in the current quarter is 717,142.

Boston Properties, Inc.

Fourth Quarter 2009

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q4 2009		Q3 2009		Q2 2009		Q1 2009		2008			2007		2006

Recurring capital expenditures	$	8,854	$	4,443	$	5,702	$	8,814	$	29,781		$	36,599	$	25,718

Planned non-recurring capital expenditures associated with acquisition properties		235		200		48		382		3,203			1,490		3,869

Hotel improvements, equipment upgrades and replacements		198		376		279		662		2,317	(1)		1,127		7,969	(2)

	$	9,287	$	5,019	$	6,029	$	9,858	$	35,301		$	39,216	$	37,556

2nd Generation Tenant Improvements and Leasing Commissions


	Q4 2009		Q3 2009		Q2 2009		Q1 2009		2008		2007		2006
Office
Square feet		1,100,854		933,015		903,352		608,030		2,472,619		3,201,812		2,972,996

Tenant improvement and lease commissions PSF	$	26.24	$	28.55	$	37.75	$	42.62	$	30.17	$	23.88	$	29.14

Office/Technical
Square feet		74,968		9,820		—		31,060		26,388		226,692		33,400

Tenant improvement and lease commissions PSF	$	—	$	—	$	—	$	0.49	$	—	$	26.62	$	—


Average tenant improvement and lease commissions PSF	$	25.02	$	28.24	$	37.75	$	40.49	$	29.85	$	24.06	$	28.82

(1)	Includes approximately $723 of costs related to suites renovation at Cambridge Center Marriott.

(2)	Includes approximately $5,600 of costs related to a room renovation project at Cambridge Center Marriott.

Boston Properties, Inc.

Fourth Quarter 2009

ACQUISITIONS/DISPOSITIONS

as of December 31, 2009

ACQUISITIONS

For the period from January 1, 2009 through December 31, 2009


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment			Total Investment		Percentage Leased

17 Cambridge Center (Development Rights)	Jan-09	N/A	$	11,400,000	$	—	(1)	$	11,400,000	N/A
17 Cambridge Center (Land)	Nov-09	N/A		5,995,000		—	(1)		5,995,000	N/A

Total Acquisitions		—	$	17,395,000	$	—		$	17,395,000	—

DISPOSITIONS

For the period from January 1, 2009 through December 31, 2009


Property	Date Disposed	Square Feet	Gross Sales Price		Book Gain

20 F Street Land (2)	Apr-08	—	$	—	$	11,760,000

Total Dispositions		—	$	—	$	11,760,000

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

(2)

On April 14, 2008, the Company sold a parcel of land located in Washington, D.C. for approximately $33.7 million. The Company had previously entered into a development agreement with the buyer to develop a Class A office property on the parcel totaling approximately 165,000 net rentable square feet. The estimated gain on sale totaling approximately $23.4 million has been deferred and the Company has and will continue to recognize over the construction period.

Boston Properties, Inc.

Fourth Quarter 2009

VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS (1)

as of December 31, 2009


Construction Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date (2) (3)		Estimated Total Investment (2) (3)		Total Construction Loan (2)		Amount Drawn at 12/31/09 (2)		Estimated Future Equity Requirement (2)		Percentage Leased (4)

Weston Corporate Center	Q3 2010	Q3 2010	Weston, MA	1	356,367	$	98,601,595	$	150,000,000	$	—	$	—	$	51,398,405	100	%
Atlantic Wharf (formerly Russia Wharf) (5)	Q1 2011	Q1 2012	Boston, MA	2	860,000		384,298,125		600,000,000		215,000,000		—		701,875	58	%(6)
2200 Pennsylvania Avenue (7)	Q2 2011	Q2 2012	Washington, DC	2	780,000		88,924,524		380,000,000		—		—		291,075,476	43	%(8)

Total Properties under Construction				5	1,996,367	$	571,824,244	$	1,130,000,000	$	215,000,000	$	—	$	343,175,756	63	%(6)(8)

PROJECTS PLACED-IN-SERVICE DURING 2009


	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date (2) (3)		Estimated Total Investment (2) (3)		Debt		Drawn at 12/31/09 (2)		Estimated Future Equity Requirement		Percentage Leased

701 Carnegie Center	Q4 2009	Q4 2009	Princeton, NJ	1	120,000	$	31,381,875	$	31,400,000	$	—	$	—	$	18,125	100	%
Democracy Tower (formerly South of Market - Phase II)	Q3 2009	Q3 2009	Reston, VA	1	235,436		78,395,073		80,700,000		65,000,000		58,875,270		—	100	%
One Preserve Parkway	Q2 2008	Q3 2010	Rockville, MD	1	183,192		49,812,428		60,536,931		—		—		10,724,503	65	%
Wisconsin Place (66.67% ownership) (9)	Q2 2009	Q2 2009	Chevy Chase, MD	1	299,136		80,555,277		93,500,000		79,970,501		67,858,894		833,116	91	%

Total Projects Placed in Service				4	837,764	$	240,144,653	$	266,136,931	$	144,970,501	$	126,734,164	$	11,575,744	89	%


250 West 55th (10)	—	—	New York, NY	1	1,000,000	$	472,880,997	$	480,000,000	$	—	$	—	$	7,119,003	N/A

Total Properties Suspended				1	1,000,000	$	472,880,997	$	480,000,000	$	—	$	—	$	7,119,003	N/A

IN-SERVICE PROPERTIES HELD FOR RE-DEVELOPMENT


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF (11)		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)	Estimated Future SF (12)

103 Fourth Avenue	Route 128 Mass Turnpike MA	1	62,476	58.5	%	$	24.57	N	S	265,000
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,194	16.0	%		17.55	N	S	414,000
6601 Springfield Center Drive	Fairfax County VA	1	26,388	100.0	%		11.17	N	S	86,000
6605 Springfield Center Drive	Fairfax County VA	1	68,907	0.0	%		—	N	S	300,000
North First Business Park	San Jose, CA	5	190,636	75.8	%		16.12	N	S	683,000
635 Massachusetts Avenue	Washington, DC	1	211,000	100.0	%		28.31	N	CBD	450,000

Total Properties held for Re-Development		12	688,601	63.8	%	$	22.45			2,198,000

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

(2)	Represents the Company’s share.

(3)	Includes net revenue during lease up period.

(4)	Represents percentage leased as of January 26, 2010.

(5)

Project has been updated to reflect the conversion of approximately 160,000 square feet of residential to approximately 200,000 square feet of office, increasing the total square feet to 860,000 square feet. In addition, the project estimated total investment has been updated to reflect the completion of the interior build out of the residential component. The project includes 70,000 square feet of residential space for rent and 24,000 square feet of retail space.

(6)	Percentage leased excludes 70,000 square feet of residential space and includes 24,000 square feet of retail space.

(7)	Project includes 280,000 square feet of residential space and 50,000 square feet of retail space in the Residential Component and 22,000 square feet of retail space in the Office Component.

(8)	Percentage Lease excludes 330,000 square feet of the Residential Component and includes 22,000 square feet of retail space in the Office Component.

(9)	Includes approximately $42.7 million of land and infrastructure costs invested to date, which represents the Company’s interest of approximately 23.89%.

(10)

On November 30, 2009, we completed the construction of foundations and steel/deck to grade to facilitate a restart of construction in the future. The estimated total investment only reflects the completion of this work and does not reflect the estimated costs of the potential future completion of this project.

(11)	For disclosures relating to our definition of Annualized Revenue, see page 50.

(12)	Included in Approximate Developable Square Feet of Value Creation Pipeline - Owned Land Parcels on page 48.

Boston Properties, Inc.

Fourth Quarter 2009

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of December 31, 2009


Location	Acreage	Approximate Developable Square Feet

San Jose, CA (1) (2)	44.0	2,600,000
Waltham, MA (1)	25.4	1,150,000
New York, NY (3)	1.0	1,000,000
Reston, VA	33.8	910,000
Dulles, VA	76.6	760,000
Gaithersburg, MD	27.0	850,000
Springfield, VA (1)	17.8	800,000
Rockville, MD	58.1	759,000
Boston, MA (4)	1.0	450,000
Washington, DC (1)	1.0	450,000
Marlborough, MA	50.0	400,000
Annapolis, MD (50% ownership)	20.0	300,000
Cambridge, MA (5)	1.1	170,000
Andover, MA	10.0	110,000
New York, NY (50% ownership) (6)	0.2	TBD

	367.0	10,709,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of December 31, 2009


Location	Acreage	Approximate Developable Square Feet

Princeton, NJ (7)	143.1	1,780,000
Cambridge, MA (8)	—	200,000

	143.1	1,980,000

(1)	Properties on-site are held for future re-development and are referenced on page 47.

(2)	Includes an additional 460,000 square feet of developable square footage at our 3200 Zanker Road project.

(3)	On November 30, 2009, we completed the construction of foundations and steel/deck to grade at 250 West 55th Street, to facilitate a restart of construction in the future.

(4)	Excludes 250,000 developable square feet of which the Company has executed an agreement to ground lease with a Residential developer. Option payments commenced in the third quarter of 2009.

(5)	On November 6, 2009, the Company exercised its option to purchase land from the Cambridge Redevelopment Authority with 170,000 developable square feet of office.

(6)	Previously reported as land purchase options, this includes four remaining sites comprised of five lots with air rights. The developable square feet remains to be determined.

(7)	Option to purchase at a fixed price of $30.50 per square foot plus annual non-refundable option payments of $125,000.

(8)	The Company also has the option to purchase 200,000 square feet of residential rights.

Boston Properties, Inc.

Fourth Quarter 2009

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 quarterly report on Form 10-Q, as well as other documents filed with or furnished to 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.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income and considered in addition to cash flows determined 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 non-real estate depreciation, fair value interest adjustment, net derivative losses (gains), impairments, ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment, loss from suspension of development, non-cash termination income and partners’ share of joint venture 2nd generation tenant improvement and leasing commission, (2) eliminating the effects of straight-line rent and fair value lease revenue, (3) subtracting: recurring capital expenditures; hotel improvements, equipment upgrades and replacements; and second generation tenant improvement and leasing commissions; and (4) subtracting 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 determined 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.

Total Consolidated Debt to Total Consolidated Market Capitalization Ratio

Total consolidated debt to total consolidated 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 consolidated market capitalization is the sum of (A) our total consolidated indebtedness outstanding plus (B) 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) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding Series Two Preferred Units of partnership interest in Boston Properties Limited Partnership and (4) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units. The calculation of total consolidated market capitalization does not include OPP Units because, unlike other LTIP Units, they are not earned until certain thresholds are achieved. 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 total consolidated debt to total consolidated market capitalization ratio is in part a function of the market price of the common stock of the Company, 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 total consolidated debt to total consolidated 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.

Total Combined Debt to Total Combined Market Capitalization Ratio

Total combined debt to total combined market capitalization ratio, defined as total combined debt (which equals our total consolidated debt plus our share of unconsolidated joint venture debt) as a percentage of the market value of our outstanding equity securities plus our total combined debt, is an alternative measure of leverage used by some analysts in the REIT sector. Total combined market capitalization is the sum of (A) our total combined debt plus (B) 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) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding Series Two Preferred Units of partnership interest in Boston Properties Limited Partnership and (4) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units. The calculation of total combined market capitalization does not include OPP Units because, unlike other LTIP Units, they are not earned until certain thresholds are achieved.

We present this ratio because, following our acquisitions of the General Motors Building, Two Grand Central Tower, 125 West 55th Street and 540 Madison Avenue through unconsolidated joint ventures in June and August 2008, our share of unconsolidated joint venture debt increased significantly compared to prior periods when the amount of assets held through unconsolidated joint ventures was significantly smaller. In light of the difference between our total consolidated debt and our total combined debt, we believe that presenting our total combined debt to total combined market capitalization as well may provide investors with a more complete picture of our leverage. Investors should understand that our total combined debt to total combined market capitalization ratio is in part a function of the market price of the common stock of the Company, 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. The total combined debt to total combined market capitalization ratio should be 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.

Boston Properties, Inc.

Fourth Quarter 2009

Definitions

Consolidated Net Operating Income (NOI)

Consolidated NOI is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc., the most directly comparable GAAP financial measure, plus income attributable to noncontrolling interests, corporate general and administrative expense, depreciation and amortization, interest expense, loss from suspension of development, net derivative losses and losses from early extinguishment of debt, less interest income, development and management services income, gains from property dispositions, gains on sale from discontinued operations, income from discontinued operations and income from unconsolidated joint ventures. In some cases we also present Consolidated NOI on a cash basis, which is Consolidated NOI after eliminating the effects of straight-lining of rent and fair value lease revenue. We use Consolidated NOI internally as a performance measure and believe Consolidated 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 Consolidated NOI is a useful measure for evaluating the operating performance of our real estate assets. Our management also uses Consolidated NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, we believe Consolidated NOI is useful to investors as a performance measure because, when compared across periods, Consolidated 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. Consolidated 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. Consolidated NOI presented by us may not be comparable to Consolidated NOI reported by other REITs that define Consolidated NOI differently. We believe that in order to facilitate a clear understanding of our operating results, Consolidated NOI should be examined in conjunction with net income as presented in our consolidated financial statements. Consolidated 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.

Combined Net Operating Income (NOI)

Combined NOI is a non-GAAP financial measure equal to Consolidated NOI plus our share of income from unconsolidated joint ventures. In some cases we also present Combined NOI on a cash basis, which is Combined NOI after eliminating the effects of straight-lining of rent and fair value lease revenue. In addition to Consolidated NOI, we use Combined NOI internally as a performance measure and believe Combined NOI provides useful information to investors regarding our financial condition and results of operations because it includes the impact of our unconsolidated joint ventures, which have become significant. Therefore, we believe Combined NOI is a useful measure for evaluating the operating performance of all of our real estate assets, including those held by our unconsolidated joint ventures. Our management also uses Combined NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, like Consolidated NOI, we believe Combined NOI is useful to investors as a performance measure because, when compared across periods, Combined 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. Combined NOI presented by us may not be comparable to Combined NOI reported by other REITs that define Combined NOI differently. We believe that in order to facilitate a clear understanding of our operating results, Combined NOI should be examined in conjunction with net income as presented in our consolidated financial statements. Combined 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.

Portfolio Net Operating Income (NOI)

Portfolio NOI is a non-GAAP financial measure equal to Combined NOI less our share of income from the Value-Added Fund in recognition of the fact that we do not include non-core office properties held by the fund in the Company’s portfolio information tables or other portfolio level statistics because they have deficiencies in property characteristics which provide opportunity to create value. In some cases we also present Portfolio NOI on a cash basis, which is Portfolio NOI after eliminating the effects of straight-lining of rent and fair value lease revenue. In addition to Consolidated NOI and Combined NOI, we use Portfolio NOI internally as a performance measure and believe Portfolio NOI provides useful information to investors regarding our financial condition and results of operations because it includes the impact of our unconsolidated joint ventures, which have become significant, but excludes the impact of the Value-Added Fund. Therefore, we believe Portfolio NOI is a useful measure for evaluating the operating performance of our active portfolio, including both consolidated assets and those held by our unconsolidated joint ventures. Our management also uses Portfolio NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, like Consolidated NOI and Combined NOI, we believe Portfolio NOI is useful to investors as a performance measure because, when compared across periods, Portfolio 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. Portfolio NOI presented by us may not be comparable to Portfolio NOI reported by other REITs that define Portfolio NOI differently. We believe that in order to facilitate a clear understanding of our operating results, Portfolio NOI should be examined in conjunction with net income as presented in our consolidated financial statements. Portfolio 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” which is generally later than the date the property is placed in-service for GAAP. 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. In-service properties include properties held by our unconsolidated joint ventures (other than the Value-Added Fund).

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.” Pages 20-22 indicate by footnote the “In-Service Properties” which are not included in “Same Properties.” “Same Properties NOI” includes our share of net operating income from unconsolidated joint ventures (other than the Value-Added Fund).

Annualized Revenue

Contractual rental obligations at the end of the reporting period, including contractual reimbursements, on an annualized cash basis.

Future Annualized Revenue

Contractual rental obligations at lease expiration, including current contractual reimbursements, on an annualized cash basis.

Press release

Exhibit 99.2

LOGO

800 Boylston Street

Boston, MA 02199

AT THE COMPANY

Michael Walsh

Senior Vice President, Finance

(617) 236-3410

Arista Joyner

Investor Relations Manager

(617) 236-3343

BOSTON PROPERTIES ANNOUNCES

FOURTH QUARTER 2009 RESULTS

Reports diluted FFO per share of $1.04 Reports diluted EPS of $0.38

BOSTON, MA, January 26, 2010 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the fourth quarter ended December 31, 2009.

Results for the quarter ended December 31, 2009

Funds from Operations (FFO) for the quarter ended December 31, 2009 were $146.1 million, or $1.05 per share basic and $1.04 per share diluted. This compares to FFO for the quarter ended December 31, 2008 of $(0.6) million, or $(0.01) per share basic and $(0.01) per share diluted. FFO for the quarter ended December 31, 2009 includes $0.04 per share on a diluted basis related to non-cash impairment charges on the Company’s investment in its Value-Added Fund. FFO for the quarter ended December 31, 2008 includes $1.33 per share on a diluted basis related to non-cash impairment charges on certain of the Company’s investments in unconsolidated joint ventures, $0.05 per share on a diluted basis related to termination income associated with the Company’s termination of its lease with the law firm of Heller Ehrman LLP and $0.05 per share charge on a diluted basis related to the ineffectiveness of certain of the Company’s interest rate hedging contracts. FFO for the quarters ended December 31, 2009 and 2008 also includes additional non-cash interest expense of $0.07 and $0.06 per share on a diluted basis, respectively, related to the Company’s adoption of Accounting Standards Codification 470-20 “Debt with Conversion and Other Options” (formerly known as FSP No. APB 14-1). The weighted average number of basic and diluted shares outstanding totaled 138,761,430 and 140,919,736, respectively, for the quarter ended December 31, 2009 and 120,788,097 and 120,788,097, respectively, for the quarter ended December 31, 2008.

Net income (loss) available to common shareholders was $53.3 million for the quarter ended December 31, 2009, compared to $(98.1) million for the quarter ended December 31, 2008. Net income (loss) available to common shareholders per share (EPS) for the quarter ended December 31, 2009 was $0.38 basic and $0.38 on a diluted basis. This compares to EPS for the fourth quarter of 2008 of $(0.81) basic and $(0.81) on a diluted basis.

Results for the year ended December 31, 2009

FFO for the year ended December 31, 2009 were $606.3 million, or $4.63 per share basic and $4.59 per share diluted. This compares to FFO for the year ended December 31, 2008 of $403.8 million, or $3.37 per share basic and $3.33 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 131,050,184 and 132,972,524, respectively, for the year ended December 31, 2009 and 119,979,810 and 122,759,352, respectively, for the year ended December 31, 2008.

Net income available to common shareholders was $231.0 million for the year ended December 31, 2009, compared to $105.3 million for the year ended December 31, 2008. Net income available to common shareholders per share (EPS) for the year ended December 31, 2009 was $1.76 basic and $1.76 on a diluted basis. This compares to EPS for the year ended December 31, 2008 of $0.88 basic and $0.87 on a diluted basis.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter and year ended December 31, 2009. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of December 31, 2009, the Company’s portfolio consisted of 146 properties comprising approximately 50.5 million square feet, including five properties under construction totaling 2.0 million square feet and one hotel. The overall percentage of leased space for the 140 properties in service as of December 31, 2009 was 92.4%.

Significant events during the fourth quarter included:

•

On October 9, 2009, the Company’s Operating Partnership completed a public offering of $700.0 million in aggregate principal amount of its 5.875% senior notes due 2019. The notes were priced at 99.931% of the principal amount to yield 5.884% to maturity. The aggregate net proceeds to the Operating Partnership, after deducting underwriter discounts and offering expenses, were approximately $693.7 million. The notes mature on October 15, 2019, unless earlier redeemed.

•

On October 9, 2009, the Company placed in-service 701 Carnegie Center, an approximately 120,000 net rentable square foot Class A office property located in Princeton, New Jersey. The property is 100% leased.

•

On November 6, 2009, the Company acquired the land parcel at 17 Cambridge Center in Cambridge, Massachusetts for a gross purchase price of approximately $6.0 million.

•

During the quarter ended December 31, 2009, the Company’s Value-Added Fund, an unconsolidated joint venture, recognized a non-cash impairment charge related to its One and Two Circle Star Way properties in San Carlos, California totaling approximately $24.6 million, of which the Company’s share was approximately $4.2 million. In addition, the

Company recognized a non-cash impairment charge of approximately $2.0 million representing the other-than-temporary decline in the fair value below the remaining carrying value of its investment in the Value-Added Fund.

Transactions completed subsequent to December 31, 2009:

•

On January 19, 2010, the Company paid $12.8 million related to the termination of a lease for its 250 West 55th Street project in New York City. The Company announced in February 2009 that it was suspending construction of the 1,000,000 square foot office project. During the first quarter of 2009, the Company recognized costs aggregating approximately $27.8 million related to the suspension of development, which amount included a $20.0 million accrual for leasing related costs. As a result, the Company will recognize approximately $7.2 million of other income during the first quarter of 2010, which amount has been reflected in the guidance below.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter and full year 2010 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below.


	First Quarter 2010					Full Year 2010
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	0.36	-	$	0.38	$	1.36	-	$	1.51
Add:
Projected Company Share of Real Estate Depreciation and Amortization		0.67	-		0.67		2.75	-		2.75
Less:
Projected Company Share of Gains on Sales of Real Estate		0.01	-		0.01		0.01	-		0.01


Projected FFO per Share (diluted)	$	1.02	-	$	1.04	$	4.10	-	$	4.25

Except as described below, the foregoing estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in this release and previously disclosed. In addition, the estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, or possible future impairment charges. 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 on Wednesday, January 27, 2010 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2009 results, the 2010 projections and related assumptions, and other related matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 706-4503 (Domestic) or

(281) 913-8731 (International) and entering the passcode 49923056. A replay of the conference call will be available through February 11, 2010, by dialing (800) 642-1687 (Domestic) or (706) 645-9291 (International) and entering the passcode 49923056. 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. Shortly after the call a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

Additionally, a copy of Boston Properties’ fourth quarter 2009 “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.

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 effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local economic and market conditions, the effects of acquisitions, dispositions 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, including its guidance for the first quarter and full fiscal year 2010, whether as a result of new information, future events or otherwise.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended December 31,						Year ended December 31,
	2009			2008			2009			2008
	(in thousands, except for per share amounts) (unaudited)
Revenue
Rental:
Base rent	$	295,448		$	300,544		$	1,185,431		$	1,129,215
Recoveries from tenants		46,769			50,032			200,899			204,732
Parking and other		15,357			17,663			66,597			68,105

Total rental revenue		357,574			368,239			1,452,927			1,402,052
Hotel revenue		10,277			12,158			30,385			36,872
Development and management services		8,277			9,024			34,878			30,518
Interest and other		1,784			879			4,059			18,958

Total revenue		377,912			390,300			1,522,249			1,488,400


Expenses
Operating:
Rental		124,188			123,479			501,799			488,030
Hotel		7,717			8,846			23,966			27,510
General and administrative		19,506			16,552			75,447			72,365
Interest		88,180			78,862			322,833			295,322
Depreciation and amortization		79,125			79,766			321,681			304,147
Loss from suspension of development		—			—			27,766			—
Net derivative losses		—			7,172			—			17,021
Losses from early extinguishments of debt		—			—			510			—
Losses (gains) from investments in securities		(510	)		2,631			(2,434	)		4,604

Total expenses		318,206			317,308			1,271,568			1,208,999

Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income attributable to noncontrolling interests		59,706			72,992			250,681			279,401
Income (loss) from unconsolidated joint ventures		962			(187,559	)		12,058			(182,018	)
Gains on sales of real estate		2,078			1,946			11,760			33,340

Net income		62,746			(112,621	)		274,499			130,723
Net income attributable to noncontrolling interests:
Noncontrolling interests in property partnerships		(463	)		(427	)		(2,778	)		(1,997	)
Noncontrolling interest - common units of the Operating Partnership		(7,841	)		16,339			(35,534	)		(14,392	)
Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership		(265	)		(279	)		(1,579	)		(4,838	)
Noncontrolling interest - redeemable preferred units of the Operating Partnership		(860	)		(1,075	)		(3,594	)		(4,226	)

Net income attributable to Boston Properties, Inc.	$	53,317		$	(98,063	)	$	231,014		$	105,270


Basic earnings per common share attributable to Boston Properties, Inc.:
Net income	$	0.38		$	(0.81	)	$	1.76		$	0.88


Weighted average number of common shares outstanding		138,761			120,788			131,050			119,980


Diluted earnings per common share attributable to Boston Properties, Inc.:
Net income	$	0.38		$	(0.81	)	$	1.76		$	0.87


Weighted average number of common and common equivalent shares outstanding		139,459			120,788			131,512			121,299

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	December 31, 2009			December 31, 2008
	(in thousands, except for share amounts) (unaudited)
ASSETS

Real estate	$	9,817,388		$	9,560,924
Construction in progress		563,645			835,983
Land held for future development		718,525			228,300
Less: accumulated depreciation		(2,033,677	)		(1,768,785	)

Total real estate		9,065,881			8,856,422

Cash and cash equivalents		1,448,933			241,510
Cash held in escrows		21,867			21,970
Investments in securities		9,946			11,590
Tenant and other receivables, net of allowance for doubtful accounts of $4,125 and $4,006, respectively		93,240			68,743
Related party note receivable		270,000			270,000
Accrued rental income, net of allowance of $2,645 and $15,440, respectively		363,121			316,711
Deferred charges, net		294,395			325,369
Prepaid expenses and other assets		17,684			22,401
Investments in unconsolidated joint ventures		763,636			782,760

Total assets	$	12,348,703		$	10,917,476


LIABILITIES AND EQUITY

Liabilities:
Mortgage notes payable	$	2,643,301		$	2,660,642
Unsecured senior notes, net of discount		2,172,389			1,472,375
Unsecured exchangeable senior notes, net of discount		1,904,081			1,859,867
Unsecured line of credit		—			100,000
Accounts payable and accrued expenses		220,089			171,791
Dividends and distributions payable		80,536			97,162
Accrued interest payable		76,058			67,132
Other liabilities		127,538			173,750

Total liabilities		7,223,992			6,602,719


Commitments and contingencies		—			—


Noncontrolling interest:
Redeemable preferred units of the Operating Partnership		55,652			55,652


Equity:
Stockholders’ equity attributable to Boston Properties, Inc.
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, 138,958,910 and 121,259,555 shares issued and 138,880,010 and 121,180,655 shares outstanding in 2009 and 2008, respectively		1,389			1,212
Additional paid-in capital		4,373,679			3,559,841
Earnings in excess of dividends		95,433			154,953
Treasury common stock, at cost		(2,722	)		(2,722	)
Accumulated other comprehensive loss		(21,777	)		(24,291	)

Total stockholders’ equity attributable to Boston Properties, Inc.		4,446,002			3,688,993

Noncontrolling interests:
Common units of the Operating Partnership		617,386			563,212
Property partnerships		5,671			6,900


Total equity		5,069,059			4,259,105


Total liabilities and equity	$	12,348,703		$	10,917,476

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended December 31,						Year ended December 31,
	2009			2008			2009			2008
	(in thousands, except for per share amounts) (unaudited)
Net income attributable to Boston Properties, Inc.	$	53,317		$	(98,063	)	$	231,014		$	105,270

Add:
Noncontrolling interest - redeemable preferred units of the Operating Partnership		860			1,075			3,594			4,226
Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership		265			279			1,579			4,838
Noncontrolling interest - common units of the Operating Partnership		7,841			(16,339	)		35,534			14,392
Noncontrolling interests in property partnerships		463			427			2,778			1,997
Less:
Gains on sales of real estate		2,078			1,946			11,760			33,340
Income (loss) from unconsolidated joint ventures		962			(187,559	)		12,058			(182,018	)


Income before income (loss) from unconsolidated joint ventures, gains on sales of real estate and net income attributable to noncontrolling interests		59,706			72,992			250,681			279,401

Add:
Real estate depreciation and amortization (2)		109,153			115,668			446,718			382,600
Income (loss) from unconsolidated joint ventures (3)		962			(187,559	)		12,058			(182,018	)
Less:
Noncontrolling interests in property partnerships’ share of funds from operations		1,523			897			5,513			3,949
Noncontrolling interest - redeemable preferred units of the Operating Partnership		860			953			3,594			3,738


Funds from operations (FFO) attributable to the Operating Partnership		167,438			(749	)		700,350			472,296

Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations		21,382			(107	)		94,078			68,508


Funds from operations attributable to Boston Properties, Inc.	$	146,056		$	(642	)	$	606,272		$	403,788


Our percentage share of funds from operations - basic		87.23	%		85.67	%		86.57	%		85.49	%


Weighted average shares outstanding - basic		138,761			120,788			131,050			119,980


FFO per share basic	$	1.05		$	(0.01	)	$	4.63		$	3.37


Weighted average shares outstanding - diluted		140,920			120,788			132,973			122,759


FFO per share diluted	$	1.04		$	(0.01	)	$	4.59		$	3.33

(1)

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.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO 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.

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $79,125, $79,766, $321,681 and $304,147, our share of unconsolidated joint venture real estate depreciation and amortization of $30,507, $36,399, $126,943 and $80,303, less corporate-related depreciation and amortization of $479, $497, $1,906 and $1,850 for the three months and year ended December 31, 2009 and 2008, respectively.

(3)

Includes non-cash impairment losses aggregating approximately $6.2 million and $13.6 million for the three months and year ended December 31, 2009, respectively, and $188.3 million for the three months and year ended December 31, 2008 in accordance with the guidance in Accounting Standards Codification (“ASC”) 323 “Investments-Equity Method and Joint Ventures” (formerly known as APB No. 18 “The Equity Method of Accounting for Investments in Common Stock”) and ASC 360 “Property, Plant and Equipment” (formerly known as SFAS No. 144 “Accounting for the Impairment or Disposal of Long Lived Assets”).

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	December 31, 2009		December 31, 2008
Greater Boston	89.6	%	92.9	%
Greater Washington, D.C.	95.5	%	96.1	%
Midtown Manhattan	95.4	%	98.4	%
Princeton/East Brunswick, NJ	81.7	%	83.8	%
Greater San Francisco	91.1	%	92.8	%

Total Portfolio	92.4	%	94.5	%


	% Leased by Type
	December 31, 2009		December 31, 2008
Class A Office Portfolio	92.8	%	95.2	%
Office/Technical Portfolio	83.4	%	81.9	%

Total Portfolio	92.4	%	94.5	%