SEC Filing | Boston Properties, Inc.

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bxp-20210126

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, 2021

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)


Boston Properties, Inc.	Delaware	1-13087	04-2473675
	(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)
Boston Properties Limited Partnership	Delaware	0-50209	04-3372948
	(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

(Registrants’ 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 registrants 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))

Securities registered pursuant to Section 12(b) of the Act:


Registrant	Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Boston Properties, Inc.	Common Stock, par value $0.01 per share	BXP	New York Stock Exchange
Boston Properties, Inc.	Depository Shares Each Representing 1/100th of a share	BXP PRB	New York Stock Exchange
	of 5.25% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Boston Properties, Inc. ☐ Boston Properties Limited Partnership ☐

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, 2021, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the fourth quarter of 2020. 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 3 1 , 2020.
*99.2						Press release dated January 2 6 , 202 1 .
*101.SCH						Inline XBRL Taxonomy Extension Schema Document.
*101.CAL						Inline XBRL Taxonomy Extension Calculation Linkbase Document.
*101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.


BOSTON PROPERTIES, INC.

By:			/s/ MICHAEL E. LABELLE
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			and Treasurer



BOSTON PROPERTIES LIMITED PARTNERSHIP
By: Boston Properties, Inc., its General Partner

By:			/s/ MICHAEL E. LABELLE
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			and Treasurer

Date: January 26, 2021

Document

Exhibit 99.1

https://cdn.kscope.io/828be82934eef39270d5c0416190a345-image1a.jpg

https://cdn.kscope.io/828be82934eef39270d5c0416190a345-image141.jpg

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2020

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s complete portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment, and it consists of 177 office properties, 12 retail properties, six residential properties and 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 of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner. The Company has earned nine consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. These statements are based on our current expectations of future events. 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. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; whether new or existing actions/or measures continue to result in increasing unemployment that impact the ability of our residential tenants to generate sufficient income to pay, or make them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; the effectiveness or lack of effectiveness of government relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19; and the extent of construction delays on our development/redevelopment projects due to work-stoppage orders or disruptions in the supply of materials which could result in our failure to meet the development milestones set forth in any applicable lease agreement, delay the commencement or completion of construction and our anticipated lease-up plans for a development/redevelopment project or our overall development pipeline that may cause returns on investment to be less than projected, and/or increase the costs of construction of new or existing projects. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s 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 uncertainties of investing in new markets, 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, national and international 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. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. 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, except as may be required by law.

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements 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, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 56.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company). Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures. The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 60.

GENERAL INFORMATION


Corporate Headquarters	Trading Symbol	Investor Relations	Inquiries
800 Boylston Street	BXP	Boston Properties, Inc.	Inquiries should be directed to
Suite 1900		800 Boylston Street, Suite 1900	Sara Buda
Boston, MA 02199	Stock Exchange Listing	Boston, MA 02199	Vice President, Investor Relations
www.bxp.com	New York Stock Exchange	investors.bxp.com	at 617.236.3429 or
(t) 617.236.3300		investorrelations@bxp.com	sbuda@bxp.com
(f) 617.236.3311		(t) 617.236.3429
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			at 617.236.3352 or
			mlabelle@bxp.com

(Cover photo: 10 and 20 CityPoint, Waltham, MA)


			Q4 2020
			Table of contents


			Page
OVERVIEW
Company Profile			1
Guidance			2

FINANCIAL INFORMATION
COVID-19 Impact			3
Financial Highlights			4
Consolidated Balance Sheets			6
Consolidated Income Statements			7
Funds From Operations (FFO)			8
Funds Available for Distribution (FAD)			10
Net Operating Income (NOI)			11
Same Property Net Operating Income (NOI) by Reportable Segment			13
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions			15
Acquisitions and Dispositions			16

DEVELOPMENT ACTIVITY
Construction in Progress			17
Land Parcels and Purchase Options			18

LEASING ACTIVITY
Leasing Activity			19

PROPERTY STATISTICS
Portfolio Overview			20
Residential and Hotel Performance			21
In-Service Property Listing			23
Top 20 Tenants Listing and Portfolio Tenant Diversification			27
Occupancy by Location			28

DEBT AND CAPITALIZATION
Capital Structure			29
Debt Analysis			30
Senior Unsecured Debt Covenant Compliance Ratios			31
Net Debt to EBITDAre			32
Debt Ratios			33

JOINT VENTURES
Consolidated Joint Ventures			34
Unconsolidated Joint Ventures			36

LEASE EXPIRATION ROLL-OUT
Total In-Service Properties			40
Boston			41
Los Angeles			43
New York			45
San Francisco			47
Washington, DC			49
CBD			51
Suburban			53

RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage			55
Definitions			56
Reconciliations			60
Consolidated Income Statement - Prior Year			66
Funds From Operations (FFO) - Prior Year			67
Funds Available for Distribution (FAD) - Prior Year			68


			Q4 2020
			Company profile

SNAPSHOT

(as of December 31, 2020)


Fiscal Year-End			December 31
Total Properties (includes unconsolidated joint ventures)			196
Total Square Feet (includes unconsolidated joint ventures)			51.2 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1			173.1 million
Closing Price, at the end of the quarter			$94.53 per share
Dividend - Quarter/Annualized			$0.98/$3.92 per share
Dividend Yield			4.1%
Consolidated Market Capitalization 1			$29.6 billion
BXP’s Share of Market Capitalization 1, 2			$29.6 billion
Senior Debt Ratings			BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the key tenets of our business strategy are to:

•maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC;

•invest in the highest quality buildings (primarily office) with unique amenities and desirable locations that are able to maintain high occupancy rates and achieve premium rental rates through economic cycles;

•maintain scale and a full-service real estate capability (leasing, development, construction and property management) in our markets to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle, (3) provide superior service to our tenants and (4) develop and manage our assets in the most sustainable manner possible;

•be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing new properties in times of growth and selling assets at attractive prices, resulting in continuous portfolio refreshment;

•ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make new investments at opportune points in time; and

•foster a culture and reputation of integrity, excellence and purposefulness, making us the employer of choice for talented real estate professionals, the landlord and developer of choice for our customers, as well as the counterparty of choice for real estate industry participants.

MANAGEMENT

Board of Directors

Management

Joel I. Klein

Chairman of the Board

Owen D. Thomas

Chief Executive Officer

Owen D. Thomas

Chief Executive Officer

Douglas T. Linde

President

Douglas T. Linde

President

Raymond A. Ritchey

Senior Executive Vice President

Kelly A. Ayotte

Chair of the Compensation Committee

Michael E. LaBelle

Executive Vice President, Chief Financial Officer and Treasurer

Bruce W. Duncan

Karen E. Dykstra

Peter D. Johnston

Executive Vice President, Washington, DC Region

Carol B. Einiger

Bryan J. Koop

Executive Vice President, Boston Region

Diane J. Hoskins

Robert E. Pester

Executive Vice President, San Francisco Region

Matthew J. Lustig

Chair of Nominating & Corporate Governance Committee

John F. Powers

Executive Vice President, New York Region

Frank D. Burt

Senior Vice President and Chief Legal Officer

David A. Twardock

Chair of Audit Committee

Donna D. Garesche

Senior Vice President and Chief Human Resources Officer

William H. Walton, III

Michael R. Walsh

Senior Vice President and Chief Accounting Officer

James J. Whalen

Senior Vice President and Chief Information & Technology Officer

____________________

1For additional detail, see page 29.

2For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 56.


			Q4 2020
			Guidance

The Company’s guidance for the first quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on January 26, 2021 and otherwise referenced during the Company’s conference call scheduled for January 27, 2021. Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) other possible capital markets activity, (3) possible future write-offs of accounts receivable and accrued rent balances or (4) 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, impairment losses on depreciable real estate 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, impairment losses on depreciable real estate or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 58. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.


			First Quarter 2021
			Low		High
Projected EPS (diluted)			$	0.53	$	0.57
	Add:
		Projected Company share of real estate depreciation and amortization	1.00		1.00


Projected FFO per share (diluted)			$	1.53	$	1.57


			Q4 2020
			COVID-19 Impact

Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. Set forth below are the details related to the effects of the COVID-19 pandemic to the Company’s operations for the three months ended December 31, 2020.

(unaudited and dollars in thousands)

For the fourth quarter of 2020, Revenue was $665,089 and Net income attributable to Boston Properties, Inc. common shareholders was $7,310. Included in Net income attributable to Boston Properties, Inc. common shareholders for Q4 2020 is:

•a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

For the fourth quarter of 2019, Revenue was $757,501 and Net income attributable to Boston Properties, Inc. common shareholders was $140,824.

BXP’s Share of Revenue1 for the fourth quarter of 2020 was $625,972, marking a decrease of $96,675 from $722,647 for Q4 2019. Included in BXP’s Share for Q4 2020 is an aggregate of $63,601 of primarily COVID-19 related decreases consisting of:

•$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$11,329 decrease due to limited occupancy at our only hotel.

Funds from Operations (“FFO”) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)1, 3 for Q4 2020 was $236,383, marking a decrease of $86,514 from $322,897 for Q4 2019. Included in Q4 2020 is an aggregate of $56,461 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income)1, 4 was $357,713, marking a decrease of $63,741 from $421,454 for Q4 2019. Included in Q4 2020 is an aggregate of $47,850 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$292 of write-offs associated with accounts receivable2,

•$11,832 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income) - cash1, 4 was $355,284, marking a decrease of $27,517 from $382,801 for Q4 2019. Included in Q4 2020 is an aggregate of $32,714 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$292 of write-offs associated with accounts receivable2,

•$11,832 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

Funds Available for Distribution (“FAD”)1, 5 was $161,274 for Q4 2020, a decrease of $24,554 from $185,828 for Q4 2019. The distributions to common shareholders and unitholders (excluding any special distributions) were $169,719 for Q4 2020. Included in Q4 2020 is an aggregate of $35,871 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For additional information, see page 60.

3For quantitative reconciliations of FFO for the three months ended December 31, 2020 and December 31, 2019, see pages 8 and 67, respectively.

4For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.

5For quantitative reconciliations of FAD for the three months ended December 31, 2020 and December 31, 2019, see pages 10 and 68, respectively.


			Q4 2020
			Financial highlights

(unaudited and in thousands, except ratios and per share amounts)


	Three Months Ended
	31-Dec-20			30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310		$	89,854
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.05		$	0.58
FFO attributable to Boston Properties, Inc. common shareholders 1	$	213,108		$	243,978
Diluted FFO per share 1	$	1.37		$	1.57
Dividends per common share	$	0.98		$	0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2	$	161,274		$	153,481

Selected items:
Revenue	$	665,089		$	693,268
Recoveries from tenants	$	99,562		$	105,682
Service income from tenants	$	1,061		$	967
BXP’s Share of revenue 3	$	625,972		$	664,711
BXP’s Share of straight-line rent 3	$	(465)		$	40,478
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3	$	(39,741)		$	(5,931)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3	$	(333)		$	(3,790)
BXP’s Share of fair value lease revenue 3, 4	$	1,598		$	979
BXP’s Share of termination income 3	$	1,227		$	2,850
Ground rent expense	$	3,451		$	3,455
Capitalized interest	$	12,552		$	13,463
Capitalized wages	$	3,303		$	3,409
Loss from unconsolidated joint ventures 5	$	(79,700)		$	(6,873)
BXP’s share of FFO from unconsolidated joint ventures 6	$	1,980		$	13,540
Net income attributable to noncontrolling interests in property partnerships	$	13,980		$	15,561
FFO attributable to noncontrolling interests in property partnerships 7	$	29,890		$	31,394

Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)	$	4,365		$	5,640
Below-market rents (included within Other Liabilities)	$	27,401		$	29,272
Accrued rental income liability (included within Other Liabilities)	$	125,610		$	125,442

Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8	3.38			3.34
Interest Coverage Ratio (including capitalized interest) 8	3.04			2.97
Fixed Charge Coverage Ratio 8	2.44			2.47
BXP’s Share of Net Debt to BXP’s Share of EBITDAre 9	8.07			7.32
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10	(15.1)		%	(8.9)		%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10	(7.2)		%	(12.5)		%
FAD Payout Ratio 2	105.24		%	110.57		%
Operating Margins [(rental revenue - rental expense)/rental revenue]	60.9		%	62.2		%
Occupancy of In-Service Properties	90.1		%	91.1		%

Capitalization:
Consolidated Debt	$	13,047,758		$	13,048,161
BXP’s Share of Debt 11	$	13,006,767		$	12,966,235
Consolidated Market Capitalization	$	29,610,145		$	27,147,609
Consolidated Debt/Consolidated Market Capitalization	44.07		%	48.06		%
BXP’s Share of Market Capitalization 11	$	29,569,154		$	27,065,683
BXP’s Share of Debt/BXP’s Share of Market Capitalization 11	43.99		%	47.91		%

_____________

1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 8.

2For a quantitative reconciliation of FAD, see page 10. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

4Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

5Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

6For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.

7For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

8For a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 33.


			Q4 2020
			Financial highlights (continued)

9Includes write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x and 7.21x for the three months ended December 31, 2020 and September 30, 2020, respectively. For additional information and a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 32.

10For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.

11For a quantitative reconciliation for December 31, 2020, see page 29.


			Q4 2020
			Consolidated Balance Sheets

(unaudited and in thousands)


	31-Dec-20		30-Sep-20
ASSETS
Real estate	21,649,383		$	21,554,453
Construction in progress	868,773		769,846
Land held for future development	450,954		446,392
Right of use assets - finance leases	237,393		237,382
Right of use assets - operating leases	146,406		146,973
Less accumulated depreciation	(5,534,102)		(5,413,709)
Total real estate	17,818,807		17,741,337
Cash and cash equivalents	1,668,742		1,714,783
Cash held in escrows	50,587		50,006
Investments in securities	39,457		34,934
Tenant and other receivables, net	77,411		76,330
Related party note receivable, net	77,552		77,592
Notes receivable, net	18,729		25,304
Accrued rental income, net	1,122,502		1,111,078
Deferred charges, net	640,085		644,036
Prepaid expenses and other assets	33,840		106,524
Investments in unconsolidated joint ventures	1,310,478		1,377,291
Total assets	$	22,858,190	$	22,959,215

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	2,909,081	$	2,912,494
Unsecured senior notes, net	9,639,287		9,636,397
Unsecured line of credit	—		—
Unsecured term loan, net	499,390		499,270
Lease liabilities- finance leases	236,492		233,288
Lease liabilities - operating leases	201,713		201,337
Accounts payable and accrued expenses	336,264		345,959
Dividends and distributions payable	171,082		171,070
Accrued interest payable	106,288		88,826
Other liabilities	412,084		369,932
Total liabilities	14,511,681		14,458,573

Commitments and contingencies	—		—

Redeemable deferred stock units	6,897		5,604
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding	—		—
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 and September 30, 2020	200,000		200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,797,725 and 155,715,200 issued and 155,718,825 and 155,636,300 outstanding at December 31, 2020 and September 30, 2020, respectively	1,557		1,556
Additional paid-in capital	6,356,791		6,348,076
Dividends in excess of earnings	(509,653)		(364,720)
Treasury common stock at cost, 78,900 shares at December 31, 2020 and September 30, 2020	(2,722)		(2,722)
Accumulated other comprehensive loss	(49,890)		(52,622)
Total stockholders’ equity attributable to Boston Properties, Inc.	5,996,083		6,129,568

Noncontrolling interests:
Common units of the Operating Partnership	616,596		634,796
Property partnerships	1,726,933		1,730,674
Total equity	8,339,612		8,495,038

Total liabilities and equity	$	22,858,190	$	22,959,215


			Q4 2020
			Consolidated Income Statements 1

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	31-Dec-20		30-Sep-20
Revenue
Lease	$	639,357	$	666,674
Parking and other	15,903		16,327
Hotel revenue	464		90
Development and management services	6,356		7,281
Direct reimbursements of payroll and related costs from management services contracts	3,009		2,896
Total revenue	665,089		693,268
Expenses
Operating	117,891		120,833
Real estate taxes	138,308		137,222
Demolition costs	(5)		206
Hotel operating	1,178		3,164
General and administrative 2	31,053		27,862
Payroll and related costs from management services contracts	3,009		2,896
Transaction costs	277		307
Depreciation and amortization	168,013		166,456
Total expenses	459,724		458,946
Other income (expense)
Loss from unconsolidated joint ventures 3	(79,700)		(6,873)
Gains (losses) on sales of real estate	5,259		(209)
Gains from investments in securities 2	4,296		1,858
Interest and other income (loss)	1,676		(45)

Interest expense	(111,991)		(110,993)
Net income	24,905		118,060
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships	(13,980)		(15,561)
Noncontrolling interest - common units of the Operating Partnership 4	(990)		(10,020)
Net income attributable to Boston Properties, Inc.	9,935		92,479
Preferred dividends	(2,625)		(2,625)
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310	$	89,854


INCOME PER SHARE OF COMMON STOCK (EPS)

Net income attributable to Boston Properties, Inc. per share - basic	$	0.05	$	0.58
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.05	$	0.58

_____________

1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 60.

2General and administrative expense includes $4.3 million and $1.9 million and Gains from investments in securities include $4.3 million and $1.9 million for the three months ended December 31, 2020 and September 30, 2020, respectively, related to the Company’s deferred compensation plan.

3Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

4For additional detail, see page 8.


			Q4 2020
			Funds from operations (FFO) 1

(unaudited and dollars in thousands, except per share amounts)


	Three Months Ended
	31-Dec-20			30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310		$	89,854
Add:
Preferred dividends	2,625			2,625
Noncontrolling interest - common units of the Operating Partnership	990			10,020
Noncontrolling interests in property partnerships	13,980			15,561
Net income	24,905			118,060
Add:
Depreciation and amortization expense	168,013			166,456
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	(15,910)			(15,833)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	21,168			20,413
Corporate-related depreciation and amortization	(441)			(444)
Impairment loss on investment in unconsolidated joint venture	60,524			—
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures	12			—
Gains (losses) on sales of real estate	5,259			(209)
Noncontrolling interests in property partnerships	13,980			15,561
Preferred dividends	2,625			2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 4	236,383			270,675
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	23,275			26,697
FFO attributable to Boston Properties, Inc. common shareholders	$	213,108		$	243,978

Boston Properties, Inc.’s percentage share of Basic FFO	90.15		%	90.14		%
Noncontrolling interest’s - common unitholders percentage share of Basic FFO	9.85		%	9.86		%
Basic FFO per share	$	1.37		$	1.57
Weighted average shares outstanding - basic	155,682			155,645
Diluted FFO per share	$	1.37		$	1.57
Weighted average shares outstanding - diluted	155,731			155,670

RECONCILIATION TO DILUTED FFO


	Three Months Ended
	31-Dec-20		30-Sep-20
Basic FFO	$	236,383	$	270,675
Add:
Effect of dilutive securities - stock-based compensation	—		—
Diluted FFO	236,383		270,675
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO	23,268		26,693
Boston Properties, Inc.’s share of Diluted FFO	$	213,115	$	243,982

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO


	Three Months Ended
	31-Dec-20		30-Sep-20
Shares/units for Basic FFO	172,685		172,677
Add:
Effect of dilutive securities - stock-based compensation (shares/units)	49		25
Shares/units for Diluted FFO	172,734		172,702
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)	17,003		17,032
Boston Properties, Inc.’s share of shares/units for Diluted FFO	155,731		155,670

Boston Properties, Inc.’s percentage share of Diluted FFO	90.16	%	90.14	%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.


			Q4 2020
			Funds from operations (FFO) 1 (continued)

4Basic FFO for Q4 2020 decreased by $86,514 from $322,897 for Q4 2019. For a reconciliation of Basic FFO to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 67. Included in the Q4 2020 amounts are BXP’s Share of: $39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent), $333 of write-offs associated with accounts receivable, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 Basic FFO by $56,461. For additional information, see page 60.


			Q4 2020
			Funds available for distributions (FAD) 1

(dollars in thousands)


	Three Months Ended
	31-Dec-20			30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310		$	89,854
Add:
Preferred dividends	2,625			2,625
Noncontrolling interest - common units of the Operating Partnership	990			10,020
Noncontrolling interests in property partnerships	13,980			15,561
Net income	24,905			118,060
Add:
Depreciation and amortization expense	168,013			166,456
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2	(15,910)			(15,833)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3	21,168			20,413
Corporate-related depreciation and amortization	(441)			(444)
Impairment loss on investment in unconsolidated joint venture	60,524			—
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures	12			—
Gains (losses) on sales of real estate	5,259			(209)
Noncontrolling interests in property partnerships	13,980			15,561
Preferred dividends	2,625			2,625
Basic FFO	236,383			270,675
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4	2,580			2,965
BXP’s Share of hedge amortization 1	1,446			1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5	1,216			940
Stock-based compensation	7,990			8,253
Non-real estate depreciation	441			444
Unearned portion of capitalized fees from consolidated joint ventures 6	704			660
Less:
BXP’s Share of straight-line rent 1	(465)			40,478
BXP’s Share of fair value lease revenue 1, 7	1,598			979
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1	(11)			828
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1	61,601			67,826
BXP’s Share of maintenance capital expenditures 1, 8	26,730			21,722
Hotel improvements, equipment upgrades and replacements	33			69
Funds available for distribution to common shareholders and common unitholders (FAD) 9 (A)	$	161,274		$	153,481

Distributions to common shareholders and unitholders (excluding any special distributions) (B)	$	169,719		$	169,701

FAD Payout Ratio1 (B÷A)	105.24		%	110.57		%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.

4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 4.

6See page 62 for additional information.

7Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

8Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

9FAD for Q4 2020 decreased by $24,554 from $185,828 for Q4 2019. For a reconciliation of FAD to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 68. Included in the Q4 2020 amounts are BXP’s Share of: $333 of write-offs associated with accounts receivable, a $19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 FAD by $35,871. For additional information, see page 60.


			Q4 2020
			Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)


	Three Months Ended
	31-Dec-20		31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310	$	140,824
Preferred dividends	2,625		2,625
Net income attributable to Boston Properties, Inc.	9,935		143,449
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	990		16,222
Noncontrolling interest in property partnerships	13,980		16,338
Net income	24,905		176,009
Add:
Interest expense	111,991		102,880
Loss from early extinguishments of debt	—		1,530

Depreciation and amortization expense	168,013		169,897
Transaction costs	277		569
Payroll and related costs from management services contracts	3,009		2,159
General and administrative expense	31,053		32,797
Less:
Interest and other income (loss)	1,676		4,393
Gains from investments in securities	4,296		2,177
Gains (losses) on sales of real estate	5,259		(57)
Loss from unconsolidated joint ventures	(79,700)		(936)
Direct reimbursements of payroll and related costs from management services contracts	3,009		2,159
Development and management services revenue	6,356		10,473
Net Operating Income (NOI)	398,352		467,632
Add:
BXP’s share of NOI from unconsolidated joint ventures 1	13,336		24,587
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2	40,639		45,093
BXP’s Share of NOI	371,049		447,126
Less:
Termination income	551		1,397
BXP’s share of termination income from unconsolidated joint ventures 1	771		—
Add:
Partners’ share of termination income from consolidated joint ventures 2	95		—
BXP’s Share of NOI (excluding termination income)	$	369,822	$	445,729

Net Operating Income (NOI)	$	398,352	$	467,632
Less:
Termination income	551		1,397
NOI from non Same Properties (excluding termination income) 3	14,225		22,349
Same Property NOI (excluding termination income)	383,576		443,886
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2	40,544		45,093
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3	(76)		206
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1	12,565		24,587
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	(2,192)		2,132
BXP’s Share of Same Property NOI (excluding termination income)	$	357,713	$	421,454

_____________

1For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.

2For a quantitative reconciliation for the three months ended December 31, 2020, see pages 62-63.

3Pages 23-26 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2020 and therefore are no longer a part of the Company’s property portfolio.


			Q4 2020
			Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)


	Three Months Ended
	31-Dec-20		31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders	$	7,310	$	140,824
Preferred dividends	2,625		2,625
Net income attributable to Boston Properties, Inc.	9,935		143,449
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	990		16,222
Noncontrolling interest in property partnerships	13,980		16,338
Net income	24,905		176,009
Add:
Interest expense	111,991		102,880
Loss from early extinguishments of debt	—		1,530

Depreciation and amortization expense	168,013		169,897
Transaction costs	277		569
Payroll and related costs from management services contracts	3,009		2,159
General and administrative expense	31,053		32,797
Less:
Interest and other income (loss)	1,676		4,393
Gains from investments in securities	4,296		2,177
Gains (losses) on sales of real estate	5,259		(57)
Loss from unconsolidated joint ventures	(79,700)		(936)
Direct reimbursements of payroll and related costs from management services contracts	3,009		2,159
Development and management services revenue	6,356		10,473
Net Operating Income (NOI)	398,352		467,632
Less:
Straight-line rent	13,187		40,460
Fair value lease revenue	614		2,965
Termination income	551		1,397
Add:
Straight-line ground rent expense adjustment 1	799		843
Lease transaction costs that qualify as rent inducements 2	1,333		2,170
NOI - cash (excluding termination income)	386,132		425,823
Less:
NOI - cash from non Same Properties (excluding termination income) 3	12,702		21,688
Same Property NOI - cash (excluding termination income)	373,430		404,135
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4	34,966		41,197
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3, 4	(111)		273
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5	21,175		24,590
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3, 5	4,244		5,000
BXP’s Share of Same Property NOI - cash (excluding termination income)	$	355,284	$	382,801

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $144 and $173 for the three months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 10.

4For a quantitative reconciliation for the three months ended December 31, 2020, see page 63.

5For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.


			Q4 2020
			Same property net operating income (NOI) by reportable segment

(dollars in thousands)


	Office 1								Hotel & Residential
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Dec-20		31-Dec-19		Change		Change		31-Dec-20		31-Dec-19		Change		Change
Rental Revenue 2	$	624,363	$	689,251					$	9,402	$	21,996
Less: Termination income	551		1,397						—		—
Rental revenue (excluding termination income) 2	623,812		687,854		$	(64,042)	(9.3)	%	9,402		21,996		$	(12,594)	(57.3)	%
Less: Operating expenses and real estate taxes	244,227		253,568		(9,341)		(3.7)	%	5,411		12,396		(6,985)		(56.3)	%
NOI (excluding termination income) 2, 3	$	379,585	$	434,286	$	(54,701)	(12.6)	%	$	3,991	$	9,600	$	(5,609)	(58.4)	%

Rental revenue (excluding termination income) 2	$	623,812	$	687,854	$	(64,042)	(9.3)	%	$	9,402	$	21,996	$	(12,594)	(57.3)	%
Less: Straight-line rent and fair value lease revenue	12,037		41,924		(29,887)		(71.3)	%	241		147		94		63.9	%
Add: Lease transaction costs that qualify as rent inducements 4	1,333		1,477		(144)		(9.7)	%	—		—		—		—	%
Subtotal	613,108		647,407		(34,299)		(5.3)	%	9,161		21,849		(12,688)		(58.1)	%
Less: Operating expenses and real estate taxes	244,227		253,568		(9,341)		(3.7)	%	5,411		12,396		(6,985)		(56.3)	%
Add: Straight-line ground rent expense 5	799		843		(44)		(5.2)	%	—		—		—		—	%
NOI - cash (excluding termination income) 2, 3	$	369,680	$	394,682	$	(25,002)	(6.3)	%	$	3,750	$	9,453	$	(5,703)	(60.3)	%

	Consolidated Total 1, 6 (A)								BXP’s share of Unconsolidated Joint Ventures 6 (B)
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Dec-20		31-Dec-19		Change		Change		31-Dec-20		31-Dec-19		Change		Change
Rental Revenue 2	$	633,765	$	711,247					$	27,364	$	35,721
Less: Termination income	551		1,397						771		—
Rental revenue (excluding termination income) 2	633,214		709,850		$	(76,636)	(10.8)	%	26,593		35,721		$	(9,128)	(25.6)	%
Less: Operating expenses and real estate taxes	249,638		265,964		(16,326)		(6.1)	%	11,836		13,266		(1,430)		(10.8)	%
NOI (excluding termination income) 2, 3	$	383,576	$	443,886	$	(60,310)	(13.6)	%	$	14,757	$	22,455	$	(7,698)	(34.3)	%

Rental revenue (excluding termination income) 2	$	633,214	$	709,850	$	(76,636)	(10.8)	%	$	26,593	$	35,721	$	(9,128)	(25.6)	%
Less: Straight-line rent and fair value lease revenue	12,278		42,071		(29,793)		(70.8)	%	(1,806)		5,361		(7,167)		(133.7)	%
Add: Lease transaction costs that qualify as rent inducements 4	1,333		1,477		(144)		(9.7)	%	368		2,496		(2,128)		(85.3)	%
Subtotal	$	622,269	$	669,256	(46,987)		(7.0)	%	28,767		32,856		(4,089)		(12.4)	%
Less: Operating expenses and real estate taxes	249,638		265,964		(16,326)		(6.1)	%	11,836		13,266		(1,430)		(10.8)	%
Add: Straight-line ground rent expense 5	799		843		(44)		(5.2)	%	—		—		—		—	%
NOI - cash (excluding termination income) 2, 3	$	373,430	$	404,135	$	(30,705)	(7.6)	%	$	16,931	$	19,590	$	(2,659)	(13.6)	%

	Partners’ share of Consolidated Joint Ventures 6 (C)								BXP’s Share 3, 6, 7, 8, 9
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Dec-20		31-Dec-19		Change		Change		31-Dec-20		31-Dec-19		Change		Change
Rental Revenue 2	$	70,452	$	74,548					$	590,677	$	672,420
Less: Termination income	95		—						1,227		1,397
Rental revenue (excluding termination income) 2	70,357		74,548		$	(4,191)	(5.6)	%	589,450		671,023		$	(81,573)	(12.2)	%
Less: Operating expenses and real estate taxes	29,737		29,661		76		0.3	%	231,737		249,569		(17,832)		(7.1)	%
NOI (excluding termination income) 2, 3	$	40,620	$	44,887	$	(4,267)	(9.5)	%	$	357,713	$	421,454	$	(63,741)	(15.1)	%

Rental revenue (excluding termination income) 2	$	70,357	$	74,548	$	(4,191)	(5.6)	%	$	589,450	$	671,023	$	(81,573)	(12.2)	%
Less: Straight-line rent and fair value lease revenue	5,555		4,131		1,424		34.5	%	4,917		43,301		(38,384)		(88.6)	%
Add: Lease transaction costs that qualify as rent inducements 4	12		168		(156)		(92.9)	%	1,689		3,805		(2,116)		(55.6)	%
Subtotal	64,814		70,585		(5,771)		(8.2)	%	586,222		631,527		(45,305)		(7.2)	%
Less: Operating expenses and real estate taxes	29,737		29,661		76		0.3	%	231,737		249,569		(17,832)		(7.1)	%
Add: Straight-line ground rent expense 5	—		—		—		—	%	799		843		(44)		(5.2)	%
NOI - cash (excluding termination income) 2, 3	$	35,077	$	40,924	$	(5,847)	(14.3)	%	$	355,284	$	382,801	$	(27,517)	(7.2)	%

___________________

1Includes 100% share of consolidated joint ventures that are a Same Property.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 11-12.

5Excludes the straight-line impact of approximately $144 and $173 for the three months ended December 31, 2020 and 2019, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 12.


			Q4 2020
			Same property net operating income (NOI) by reportable segment (continued)

6For the three months ended December 31, 2020, includes write-offs associated with accounts receivable of approximately $294 for Consolidated Total, $2 for Partners’ share of Consolidated Joint Ventures, $0 for BXP’s share of Unconsolidated Joint Ventures and $292 for BXP’s Share, primarily related to COVID-19. For the three months ended December 31, 2020, includes write-offs associated with straight-line rent of approximately $26,168 for Consolidated Total, $46 for Partners’ share of Consolidated Joint Ventures, $5,415 for BXP’s share of Unconsolidated Joint Ventures and $31,537 for BXP’s Share, primarily related to COVID-19. For additional information, see page 60.

7BXP’s Share equals (A) + (B) - (C).

8BXP’s Share of Same Store NOI (excluding termination income) was $63,741 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent), $292 of write-offs associated with accounts receivable, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI (excluding termination income) by $47,850. For additional information, see page 60.

9BXP’s Share of Same Store NOI-cash (excluding termination income) was $27,517 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $292 of write-offs associated with accounts receivable, $16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI-cash (excluding termination income) by $32,714. For additional information, see page 60.


			Q4 2020
			Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES


	Three Months Ended
	31-Dec-20		30-Sep-20
Maintenance capital expenditures	$	27,253	$	22,003
Planned capital expenditures associated with acquisition properties	—		—
Repositioning capital expenditures	86		(121)
Hotel improvements, equipment upgrades and replacements	33		69
Subtotal	27,372		21,951
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)	36		178
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs	1,411		1,793
BXP’s share of repositioning capital expenditures from unconsolidated JVs	322		(203)
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs	559		459
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs	—		—
Partners’ share of repositioning capital expenditures from consolidated JVs	(26)		(77)
BXP’s Share of Capital Expenditures 1	$	28,608	$	23,337

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2


	Three Months Ended
	31-Dec-20		30-Sep-20
Square feet	935,144		1,188,471
Tenant improvements and lease commissions PSF	$	68.87	$	66.57

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2Includes 100% of unconsolidated joint ventures.


			Q4 2020
			Acquisitions and dispositions

For the period from January 1, 2020 through December 31, 2020

(dollars in thousands)

ACQUISITIONS


				Investment
Property	Location	Date Acquired	Square Feet	Initial		Anticipated Future		Total		In-service Leased (%)

681, 685 and 701 Gateway (50% nominal ownership interest) 1	South San Francisco, CA	January 28, 2020	312,828	$	280,751	$	—	$	280,751	100.0	%
Platform 16 (55% ownership interest) 2	San Jose, CA	February 20, 2020	N/A	74,113		—		74,113		N/A
Fourth + Harrison	San Francisco, CA	June 26, 2020	N/A	140,147		—		140,147		N/A
Beach Cities Media Center (50% ownership interest)	El Segundo, CA	July 23, 2020	N/A	21,226		—		21,226		N/A
759 Harrison Street	San Francisco, CA	July 31, 2020 and December 15, 2020	N/A	4,500		—		4,500		N/A
Total Acquisitions			312,828	$	520,737	$	—	$	520,737	100.0	%

DISPOSITIONS


Property	Location	Date Disposed	Square Feet	Gross Sales Price		Net Cash Proceeds		Book Gain 5

601, 611 and 651 Gateway (50% ownership interest) 1	South San Francisco, CA	January 28, 2020	768,236	$	350,000	$	—	$	217,744
New Dominion Technology Park	Herndon, VA	February 20, 2020	492,601	256,000		254,015		192,341
Annapolis Junction Building Eight and two land parcels (50% ownership interest) 3	Annapolis, MD	June 25, 2020	125,685	47,000		22,895		5,829
Capital Gallery 4	Washington, DC	June 25, 2020	455,000	253,675		246,582		203,524
Crane Meadow (land parcel)	Marlborough, MA	December 16, 2020	N/A	14,250		14,177		5,248
Total Dispositions			1,841,522	$	920,925	$	537,669	$	624,686

________________

1On January 28, 2020, the Company entered into a joint venture with a third party to own, operate and develop properties at its Gateway Commons complex located in South San Francisco, California. The Company contributed its 601, 611 and 651 Gateway properties and development rights with an agreed upon value aggregating approximately $350.0 million for its 50% interest in the joint venture. The partner contributed three properties and development rights with an agreed upon value aggregating approximately $280.8 million at closing and will contribute cash totaling approximately $69.2 million in the future for its 50% ownership interest in the joint venture. As a result of the partner’s deferred contribution, the Company has an initial approximately 55% interest in the joint venture. The Company recognized a gain on the retained and sold interest in the real estate contributed to the joint venture totaling approximately $217.7 million during the three months ended March 31, 2020, as the fair value of the real estate exceeded its carrying value.

2On February 20, 2020, a joint venture in which the Company has a 55% interest acquired the land underlying the ground lease at its Platform 16 project located in San Jose, California for a purchase price totaling approximately $134.8 million. The joint venture had previously made a deposit totaling $15.0 million, which deposit was credited against the purchase price. Platform 16 consists of a parcel of land totaling approximately 5.6 acres that is expected to support the development of approximately 1.1 million square feet of commercial office space.

3Net cash proceeds totaled approximately $45.8 million, of which the Company’s share was approximately $22.9 million. The joint venture distributed approximately $36.8 million, of which the Company’s share totaled approximately $18.4 million, of available cash and the net proceeds from the sale after the pay down of the mortgage loan. The Company’s share of the gain on sale of real estate totaling approximately $5.8 million is included in Income from Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations.

4On June 25, 2020, the Company sold a portion of its Capital Gallery property located in Washington, DC for a gross sale price of approximately $253.7 million. The portion sold was comprised of approximately 455,000 net rentable square feet of commercial office space. The Company continues to own the land, underground parking garage and remaining commercial office and retail space containing approximately 176,000 net rentable square feet at the property.

5Excludes approximately $0.2 million of gains on sales of real estate recognized during the year ended December 31, 2020 related to gain amounts from sales of real estate occurring in the prior year.


			Q4 2020
			Construction in progress

as of December 31, 2020

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1


		Actual/Estimated				BXP’s share
		Initial Occupancy	Stabilization Date		Square Feet	Investment to Date 2		Estimated Total Investment 2		Total Financing		Amount Drawn at 12/31/2020		Estimated Future Equity Requirement 2		Percentage Leased 3		Percentage placed in-service 4		Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties				Location
Office and Retail
	325 Main Street	Q3 2022	Q3 2022	Cambridge, MA	420,000	$	181,917	$	418,400	$	—			$	236,483	90	%	—	%	N/A
	100 Causeway Street (50% ownership)	Q2 2021	Q3 2022	Boston, MA	632,000	189,528		267,300		200,000		108,287		—		94	%	—	%	N/A
	7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership)	Q3 2022	Q3 2022	Bethesda, MD	734,000	148,452		198,900		127,500		81,932		4,880		100	%	—	%	N/A
	Reston Next (formerly Reston Gateway)	Q4 2022	Q4 2023	Reston, VA	1,062,000	372,788		715,300		—		—		342,512		85	%	—	%	N/A
	2100 Pennsylvania Avenue	Q3 2022	Q3 2024	Washington, DC	480,000	134,071		356,100		—		—		222,029		62	%	—	%	N/A
	Total Office Properties under Construction				3,328,000	1,026,756		1,956,000		327,500		190,219		805,904		87	%	—	%	—

Redevelopment Properties
	One Five Nine East 53rd (55% ownership)	Q2 2021	Q2 2021	New York, NY	220,000	137,964		150,000		—		—		12,036		96	%	—	%	N/A
	200 West Street 6	Q4 2021	Q4 2021	Waltham, MA	138,000	17,028		47,800		—		—		30,772		100	%	—	%	N/A
	Total Redevelopment Properties under Construction				358,000	154,992		197,800		—		—		42,808		98	%	—	%	N/A

Total Properties Under Construction and Redevelopment					3,686,000	$	1,181,748	$	2,153,800	$	327,500	$	190,219	$	848,712	88	%	—	%	—

PROJECTS FULLY PLACED IN-SERVICE DURING 2020


	Actual/Estimated				BXP’s share
							Estimated Total Investment 2				Amount Drawn at 12/31/2020		Estimated Future Equity Requirement 2					Net Operating Income (Loss) 5 (BXP’s share)
	Initial Occupancy	Stabilization Date		Square feet	Investment to Date 2				Total Financing						Percentage Leased 3
			Location
17Fifty Presidents Street	Q1 2020	Q1 2020	Reston, VA	275,809	$	132,273	$	132,320	$	—	$	—	$	47	100	%		$	3,143
20 CityPoint	Q3 2019	Q3 2021	Waltham, MA	211,476	77,238		99,090		—		—		21,852		100	%		1,031
Hub50House (440 units) (50% ownership)	Q4 2019	Q1 2022	Boston, MA	320,444	147,641		153,520		90,000		85,624		1,503		61	%		449
The Skylyne (402 units) 7	Q3 2020	Q3 2022	Oakland, CA	318,171	248,460		263,600		—		—		15,140		18	%		(1,390)
Skylyne Retail				12,825	N/A		N/A		—		—		—		—	%		—
Dock 72 (50% ownership)	Q4 2019	Q4 2023	Brooklyn, NY	668,625	215,830		260,000		125,000		98,206		17,376		33	%		(7,438)
Total Projects Fully Placed In-Service				1,807,350	$	821,442	$	908,530	$	215,000	$	183,830	$	55,918	61	%	8	$	(4,205)

_____________

1A project is classified as Construction in Progress when (1) construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and (2) capitalized interest has commenced.

2Includes income (loss) and interest carry on debt and equity investment.

3Represents percentage leased as of January 22, 2021, including leases with future commencement dates.

4Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.

5Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2020. See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

6Represents a portion of the property under redevelopment for conversion to laboratory space.

7This property is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.

8Excludes residential units.


			Q4 2020
			Land parcels and purchase options

as of December 31, 2020

OWNED LAND PARCELS



Location	Approximate Developable Square Feet 1
Reston, VA 2		2,938,000
San Jose, CA 3		2,199,000
New York, NY (25% ownership)		2,000,000
Princeton, NJ		1,650,000
San Jose, CA (55% ownership)		1,078,000
San Francisco, CA		850,000
South San Francisco, CA (50% ownership)		640,000
Waltham, MA		605,000
Washington, DC (50% ownership)		520,000
Springfield, VA		422,000
Santa Clara, CA 3		414,000
Dulles, VA		310,000
El Segundo, CA (50% ownership)		275,000
Total		13,901,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS



Location	Approximate Developable Square Feet 1
Boston, MA		1,300,000
Waltham, MA 4		1,200,000
Cambridge, MA		330,000
Total		2,830,000

__________________

1Represents 100%.

2During the fourth quarter, a ground lease commenced with a hotel developer for approximately 200,000 square feet. Construction is contingent on their ability to obtain construction financing.

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 25.

4The Company expects to be a 50% partner in the future development of these sites.


			Q4 2020
			Leasing activity

for the three months ended December 31, 2020

ALL IN-SERVICE PROPERTIES


Net (increase)/decrease in available space (SF)	Total
Vacant space available at the beginning of the period	3,992,407


Add:

Properties placed (and partially placed) in-service 1	447,018
Leases expiring or terminated during the period	1,013,104
Total space available for lease	5,452,529

1st generation leases	—
2nd generation leases with new tenants	363,930
2nd generation lease renewals	571,214
Total space leased	935,144

Vacant space available for lease at the end of the period	4,517,385
Net (increase)/decrease in available space	(524,978)


Second generation leasing information: 2
Leases commencing during the period (SF)	935,144
Weighted average lease term (months)	82
Weighted average free rent period (days)	160
Total transaction costs per square foot 3	$68.87
Increase (decrease) in gross rents 4	6.89	%
Increase (decrease) in net rents 5	10.87	%


	All leases (SF)			Incr (decr) in 2nd generation cash rents 6				Total square feet of leases executed in the quarter 7, 8
	1st generation	2nd generation	total 6	gross 4		net 5
Boston	—	171,165	171,165	34.57	%	53.96	%	450,838
Los Angeles	—	221,089	221,089	2.86	%	4.01	%	—
New York	—	264,326	264,326	6.42	%	12.27	%	92,889
San Francisco	—	49,882	49,882	16.23	%	21.69	%	67,333
Washington, DC	—	228,682	228,682	(6.10)	%	(8.92)	%	547,376
Total / Weighted Average	—	935,144	935,144	6.89	%	10.87	%	1,158,436

_____________

1Total square feet of properties placed (and partially placed) in-service in Q4 2020 consists of 447,018 square feet of office at Dock 72.

2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 935,144 square feet of second generation leases that commenced in Q4 2020, leases for 857,379 square feet were signed in prior periods.

3Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 869,418 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 869,418 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

6Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

7Amounts shown in this column exclude COVID-19 related lease modifications covering an aggregate of approximately 921,000 square feet that were executed in the fourth quarter of 2020 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $11.5 million in the fourth quarter representing BXP’s Share. Of these lease modifications, the lease terms associated with 163,937 square feet were extended for a period of 12 or more months. In addition, COVID-19 related lease modifications from the second and third quarters of 2020 provide cash rent and/or abatement in the aggregate amount of approximately $7.7 million in the fourth quarter representing BXP’s Share. For additional information, see page 60.

8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 77,765.


			Q4 2020
			Portfolio overview

for the three months ended December 31, 2020

(dollars in thousands)

Rentable square footage of in-service properties by location and unit type 1, 2


	Office		Retail		Residential		Hotel		Total
Boston	13,787,158		1,106,146		550,114		330,000		15,773,418
Los Angeles	2,180,794		124,932		—		—		2,305,726
New York	11,150,990		386,788		—		—		11,537,778
San Francisco	7,498,326		334,801		318,171		—		8,151,298
Washington, DC	8,297,967		664,327		822,436		—		9,784,730
Total	42,915,235		2,616,994		1,690,721		330,000		47,552,950
% of Total	90.25	%	5.50	%	3.56	%	0.69	%	100.00	%

Rental revenue of in-service properties by unit type 1


	Office 3			Retail 4			Residential			Hotel 5			Total
Consolidated	$	599,898		$	46,769		$	8,681		$	376		$	655,724
Less:
Partners’ share from consolidated joint ventures 6	62,606			7,933			—			—			70,539
Add:
BXP’s share from unconsolidated joint ventures 7	28,424			1,715			1,118			—			31,257
BXP’s Share of Rental revenue 1	$	565,716		$	40,551		$	9,799		$	376		$	616,442
% of Total	91.77		%	6.58		%	1.59		%	0.06		%	100.00		%

Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 8


	CBD		Suburban		Total
Boston	26.53	%	8.32	%	34.85	%
Los Angeles	3.85	%	—	%	3.85	%
New York	24.49	%	2.44	%	26.93	%
San Francisco	17.38	%	3.54	%	20.92	%
Washington, DC	4.15	%	9.30	%	13.45	%
Total	76.40	%	23.60	%	100.00	%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 23-26.

3Includes the impact of write-offs associated with accounts receivable of approximately $205, $0, $0 and $205 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $25,501, $0, $13,010 and $38,511 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.

4Includes the impact of write-offs associated with accounts receivable of approximately $89, $2, $41 and $128 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $667, $46, $609 and $1,230 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.

5Excludes approximately $88 of revenue from retail tenants that is included in Retail.

6See page 63 for additional information.

7See page 65 for additional information.

8BXP’s Share of NOI (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of NOI (excluding termination income), see page 11.


			Q4 2020
			Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS


	Residential 1				Hotel 2
	Three Months Ended				Three Months Ended
	31-Dec-20		30-Sep-20		31-Dec-20		30-Sep-20
Rental Revenue 3	$	9,069	$	9,718	$	464	$	90
Less: Operating expenses and real estate taxes	5,754		4,955		1,178		3,164
Net Operating Income (Loss) (NOI) 3	3,315		4,763		(714)		(3,074)
Add: BXP’s share of NOI from unconsolidated joint ventures	449		233		N/A		N/A
BXP’s Share of NOI 3	$	3,764	$	4,996	$	(714)	$	(3,074)

Rental Revenue 3	$	9,069	$	9,718	$	464	$	90
Less: Straight line rent and fair value lease revenue	248		159		(6)		(6)
Subtotal	8,821		9,559		470		96
Less: Operating expenses and real estate taxes	5,754		4,955		1,178		3,164
NOI - cash basis 3	3,067		4,604		(708)		(3,068)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures	449		233		N/A		N/A
BXP’s Share of NOI - cash basis 3	$	3,516	$	4,837	$	(708)	$	(3,068)

RENTAL RATES AND OCCUPANCY - Year-over-Year


	Residential Units	Three Months Ended						Percent Change
		31-Dec-20			31-Dec-19
BOSTON

Hub50House (50% ownership), Boston, MA 3, 4	440
Average Monthly Rental Rate		$	3,499		$	3,101		12.83	%
Average Rental Rate Per Occupied Square Foot		$	5.09		$	5.21		(2.30)	%
Average Physical Occupancy		51.89		%	17.35		%	199.08	%
Average Economic Occupancy		45.58		%	12.95		%