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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549


FORM 8-K/A

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):
October 21, 2003

Boston Properties Limited Partnership
(Exact name of Registrant as specified in its charter)

Delaware
(State or other jurisdiction
of incorporation)
  0-50209
(Commission
File Number)
  04-3372948
(I.R.S. employer
Identification No.)


111 Huntington Avenue
Boston, Massachusetts 02199
(Address of principal executive offices and zip code)

Registrant's telephone number, including area code:
(617) 236-3300





ITEM 7.    Financial Statements, Pro Forma Financial Information and Exhibits.


Exhibit No.

   
99.1   Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2003.
99.2   Press release dated November 6, 2003.


ITEM 12.    Results of Operations and Financial Condition.

        This Current Report on Form 8-K/A amends the Current Report on Form 8-K furnished by Boston Properties Limited Partnership to the Securities and Exchange Commission on October 22, 2003. The information in this Current Report on Form 8-K/A is furnished under Item 12—"Results of Operations and Financial Condition." Such information, including the exhibits attached hereto, shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K/A 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 October 21, 2003, Boston Properties, Inc. (the "Company"), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the third quarter of 2003, which included recognition of a non-cash charge of $9.8 million under paragraphs 9 and 10 of SFAS No. 150 "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity." Those provisions of SFAS No. 150 required that for the period ended September 30, 2003 certain financial instruments (e.g., minority interests in equity of consolidated joint ventures) be reclassified from either equity or mezzanine presentation to liabilities on the parent company's financial statements measured at fair value. One of the Company's consolidated joint ventures fell within the scope of SFAS No. 150, which required the Company to record a $9.8 million non-cash charge to account for the cumulative effect of adjusting the joint venture partner's outside minority interest to fair value. The press release also referred to certain supplemental information that was made available on the Company's website. Both the press release and the supplemental information were included as exhibits to Boston Properties Limited Partnership's Current Report on Form 8-K that was furnished to the Securities and Exchange Commission on October 22, 2003.

        On October 29, 2003, the Financial Accounting Standards Board (FASB) deferred the July 1, 2003 effective date for paragraphs 9 and 10 of SFAS No. 150. Accordingly, on November 6, 2003 the Company reissued its press release and made available certain supplemental information on its website reflecting the impact of the deferral of SFAS No. 150. The text of the November 6, 2003 press release and the related supplemental information are attached hereto as Exhibits 99.1 and 99.2 and are incorporated by reference herein.



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.

Date: November 6, 2003   BOSTON PROPERTIES LIMITED PARTNERSHIP

 

 

By: Boston Properties, Inc., its General Partner

 

 

/s/  
DOUGLAS T. LINDE      

 

 

By:

Douglas T. Linde
Chief Financial Officer



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Exhibit 99.1

         GRAPHIC

Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2003


Boston Properties, Inc.
Third Quarter 2003


INDEX

 
  Page

Company Background   3
Investor Information   4-5
Financial Highlights   6
Consolidated Balance Sheets   7
Consolidated Income Statements   8
Funds From Operations   9
Funds Available for Distribution and Ratios   10
Capital Structure   11
Debt Analysis   12-15
Unconsolidated Joint Ventures   16-17
Portfolio Overview—Square Footage   18
Property Listing   19-22
Top 20 Tenants   23
Portfolio Overview   24
Occupancy Analysis   25
Office Properties—Lease Expiration Roll Out   26
Office/Technical Properties—Lease Expiration Roll Out   27
Industrial Properties—Lease Expiration Roll Out   28
Retail Properties—Lease Expiration Roll Out   29
Grand Total—Office, Office/Technical, Industrial and Retail Properties   30
Boston Area Lease Expiration Roll Out   31-32
Washington DC Area Lease Expiration Roll Out   33-34
San Francisco Area Lease Expiration Roll Out   35-36
New York Area Lease Expiration Roll Out   37-38
Princeton Area Lease Expiration Roll Out   39-40
Other Area Lease Expiration Roll Out   41-42
CBD/Suburban Lease Expiration Roll Out   43-44
Hotel Performance   45
Same Property Performance   46
Reconciliation to Same Property Performance   47
In-Service Property Performance   48
Capital Expenditures, Tenant Improvements and Leasing Commissions   49
Value Creation Pipeline—Acquisitions/Dispositions   50
Value Creation Pipeline—Development   51
Value Creation Pipeline—Land Parcels and Purchase Options   52
Definitions   53

        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 "expects," "plans," "estimates," "projects," "intends," "believes" and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties' control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, the impact of newly adopted accounting principles 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. The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the fourth quarter of 2003 and the full year of 2004.

2



COMPANY BACKGROUND

        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 four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. Boston Properties was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. The Company acquires, develops and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco and Princeton, New Jersey. Its property portfolio primarily comprises first-class office space and also includes hotels and industrial buildings. Boston Properties is well known for its in-house building management expertise and responsiveness to tenants' needs.

        The Boston Properties Management Team is among the most distinguished in the REIT industry. This deep and talented team of twenty-eight individuals average twenty-four years of real estate experience and fifteen years with Boston Properties. Chairman Mortimer Zuckerman is nationally known, serving as Chairman and Editor-in-Chief of U.S. News and World Report and Chairman and Publisher of the New York Daily News. He holds an undergraduate degree from McGill University, a law degree from Harvard University and an MBA from the Wharton School, University of Pennsylvania. President and CEO Edward Linde serves on a number of corporate and philanthropic boards, including John Hancock Financial Services, Inc. the Boston Symphony Orchestra, National Association of Real Estate Investment Trusts (NAREIT) and The Real Estate Roundtable. He holds a B.S. Civil Engineering degree from MIT and an MBA with high distinction as a Baker Scholar from Harvard Graduate School of Business Administration.

        Boston Properties' primary business objective is to maximize return on investment in an effort to provide its stockholders with the greatest possible total return. The Company's targeted markets are 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. Boston Properties' business strategy includes selectively acquiring assets which increase its penetration in the markets in which it has chosen to concentrate while exploring the sale of properties to take advantage of its value creation and the demand for its premier properties, which often results in high sale prices. The Company continues to enhance its balanced capital structure through its access to a variety of sources of capital. Additionally, Boston Properties is an investment grade rated company maintaining current senior unsecured debt ratings of BBB from Standard & Poor's, Baa2 from Moody's Investor Services and BBB from Fitch Ratings.

3



INVESTOR INFORMATION

Corporate Headquarters
111 Huntington Avenue
Boston, MA 02199-7610
(617) 236-3300
(617) 236-3311 (fax)
www.bostonproperties.com
  Stock Exchange Listing
New York Stock Exchange
Trading Symbol
BXP
  Information Requests
To request a standard Investor package or to be added to our quarterly distribution list:
617-236-3322
Investor_relations@bostonproperties.com
Key Management:    
Mortimer B. Zuckerman   Chairman of the Board
Edward H. Linde   President, CEO and Director
Robert E. Burke   Executive Vice President, Operations
Douglas T. Linde   Senior Vice President, CFO and Treasurer
Raymond A. Ritchey   Executive Vice President, National Director of Acquisitions and Development
RESEARCH COVERAGE
EQUITY
  DEBT
A.G. Edwards & Sons, Inc.   David AuBuchon   (314) 955-5452   Rating Agencies:        
Banc of America Securities LLC   Lee Schalop   (212) 847-5677   Fitch Ratings   William Travers   (212) 908-0304
Bear Stearns & Company, Inc.   Ross Smotrich   (212) 272-8046   Moody's Investor Services   Lesia Bates Moss   (212) 553-4705
Credit Suisse First Boston, Inc.   Jay Habermann   (212) 538-5250   Standard & Poor's   James Fielding   (212) 438-2452
Deutsche Bank   Louis Taylor   (212) 250-4912            
Friedman, Billings, Ramsey   David Loeb   (703) 469-1289   Analysts:        
Goldman Sachs & Company   Carey Callaghan   (212) 902-4351   Banc of America Securities LLC   Chris Brown   (704) 386-2524
Green Street Advisors, Inc.   Jim Sullivan   (949) 640-8780   Bear, Stearns & Co., Inc.   Susan Berliner   (212) 272-2000
J.P. Morgan Securities, Inc.   Anthony Paolone   (212) 622-6682   BNP Paribas   Erich Marriott   (212) 841-3186
Lehman Brothers   David Shulman   (212) 526-3413   Credit Suisse First Boston, Inc.   Thierry Perrein   (212) 538-8618
McDonald Investments, Inc.   Anatole Pevnev   (216) 263-4783   Deutsche Bank Securities, Inc.   Scott O'Shea   (212) 250-7190
Merrill Lynch & Company, Inc.   Steve Sakwa   (212) 449-0335   J.P. Morgan Securities, Inc.   Mark Streeter   (212) 834-5086
Morgan Stanley & Co., Inc.   Greg Whyte   (212) 761-6331   Merrill Lynch & Company, Inc.   John Forrey   (212) 449-1812
Prudential Equity Group, Inc.   James Sullivan   (212) 778-2515   Smith Barney Citigroup   Thomas Cook   (212) 816-6000
RBC Capital Markets (US)   Jay Leupp   (415) 633-8588   U.S. Bancorp Piper Jaffray   Andrew Rosivach   (212) 284-9304
Smith Barney Citigroup   Jonathan Litt   (212) 816-0231            
UBS Securities, LLC   Keith Mills   (212) 713-3098            

        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 or 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.

TIMING

        Results for the fourth quarter 2003 will be announced in late January 2004.

4


Boston Properties, Inc.
Third Quarter 2003

COMMON STOCK DATA (NYSE:BXP)

        Boston Properties' common stock is traded primarily on the New York Stock Exchange under the symbol "BXP." BXP's common stock has had the following characteristics (based on information reported by the New York Stock Exchange):

 
  3rd Quarter 2003
  2nd Quarter 2003
  1st Quarter 2003
  4th Quarter 2002
  3rd Quarter 2002
 
High Price   $ 45.50   $ 44.51   $ 39.29   $ 37.43   $ 39.87  
Low Price   $ 41.55   $ 38.65   $ 34.99   $ 33.93   $ 34.56  
Average Price   $ 43.35   $ 41.36   $ 36.58   $ 36.50   $ 37.64  
Closing Price, at the end of the quarter   $ 43.47   $ 43.80   $ 37.90   $ 36.86   $ 37.20  
Dividends per share—annualized (1)   $ 2.52   $ 2.52   $ 2.44   $ 2.44   $ 2.44  
Closing dividend yield—annualized     5.80 %   5.75 %   6.44 %   6.62 %   6.56 %
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)     127,037     126,605     125,597     125,038     125,031  
Closing market value of shares and units outstanding (thousands)   $ 5,522,298   $ 5,545,299   $ 4,760,126   $ 4,608,901   $ 4,651,153  

(1)
Reflects dividend increase from $0.61 per share to $0.63 per share effective Q2 2003.

BPLP UNSECURED SENIOR NOTES

 
   
  5/22/2003
  3/18/2003
  1/17/2003
  12/13/2002
 
Settlement Date     5/22/03     3/18/03     1/17/03     12/13/02  
Principal Amount   $ 250,000,000   $ 300,000,000   $ 175,000,000   $ 750,000,000  
Yield (on issue date)     5.075 %   5.636 %   6.280 %   6.296 %
Coupon     5.000 %   5.625 %   6.250 %   6.250 %
Discount     99.329 %   99.898 %   99.763 %   99.650 %

Ratings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Moody's     Baa2 (stable )   Baa2 (stable )   Baa2 (stable )   Baa2 (stable )
  S&P     BBB (stable )   BBB (stable )   BBB (stable )   BBB (stable )
  Fitch     BBB (stable )   BBB (stable )   BBB (stable )   BBB (stable )
Maturity Date     6/1/2015     4/15/2015     1/15/2013     1/15/2013  

5


Boston Properties, Inc.
Third Quarter 2003

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 and 10. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the company's financial condition and results of operations can be found on page 53.

 
  Three Months Ended
 
 
  September 30, 2003
  June 30,
2003

  March 31, 2003
  December 31, 2002
  September 30, 2002
 
Income Items:                                
  Revenue   $ 331,169(1 ) $ 323,370(1 ) $ 319,680 (1) $ 333,597 (1) $ 301,193 (1)
  Straight line rent (SFAS 13)   $ 12,144   $ 10,687   $ 10,866   $ 11,938   $ 12,244  
  Fair value lease revenue (SFAS 141)(2)   $ (577 ) $ (167 ) $   $   $  
  Lease termination fees (included in revenues)   $ 1,735   $ 1,419   $ 1,761   $ 3,724   $ 1,858  
  Capitalized interest   $ 4,954   $ 4,601   $ 4,453   $ 4,719   $ 4,684  
  Capitalized wages   $ 1,288   $ 1,325   $ 1,172   $ 1,057   $ 1,562  
  Operating Margins [(rental revenue—rental expenses)/rental revenue] (3)     67.1 %   70.1 %   68.3 %   69.0 %   67.0 %
  Net income available to common shareholders   $ 56,970   $ 63,236   $ 185,045   $ 260,146   $ 71,541  
 
Funds from operations (FFO) available to common shareholders before net derivative gains/losses and after cash basis early surrender lease income (4)

 

$

99,057

 

$

103,360

 

$

102,735

 

$

113,464

 

$

98,980

 
  FFO per share before net derivative gains/losses and after cash basis early surrender lease income—diluted (4)   $ 0.98   $ 1.03   $ 1.03   $ 1.14   $ 1.00  
  Net income available to common shareholders per share—basic   $ 0.59   $ 0.66   $ 1.93   $ 2.73   $ 0.75  
  Net income available to common shareholders per share—diluted   $ 0.57   $ 0.64   $ 1.91   $ 2.70   $ 0.74  
  Dividends per share   $ 0.63   $ 0.63   $ 0.61   $ 0.61   $ 0.61  
  Funds available for distribution (FAD) (5)   $ 100,645   $ 103,611   $ 107,962   $ 112,377   $ 95,901  

Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Interest Coverage Ratio (excluding capitalized interest)—cash basis (6)     2.55     2.64     2.65     2.87     2.70  
  Interest Coverage Ratio (including capitalized interest)—cash basis (6)     2.39     2.48     2.50     2.69     2.52  
  FFO Payout Ratio (7)     64.29 %   61.17 %   59.22 %   53.51 %   61.00 %
  FAD Payout Ratio (8)     74.48 %   71.39 %   65.77 %   62.88 %   73.44 %
 
  September 30, 2003
  June 30,
2003

  March 31, 2003
  December 31, 2002
  September 30, 2002
 

Capitalization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Total Debt   $ 4,920,343   $ 4,819,282   $ 4,980,113   $ 5,147,220   $ 5,466,692  
  Price @ Quarter End   $ 43.4700   $ 43.8000   $ 37.9000   $ 36.8600   $ 37.2000  
  Equity Value @ Quarter End   $ 5,522,298   $ 5,545,299   $ 4,760,126   $ 4,608,901   $ 4,651,153  
  Total Market Capitalization (9)   $ 10,442,641   $ 10,364,581   $ 9,740,239   $ 9,756,121   $ 10,117,845  
  Debt/Total Market Capitalization (9)     47.12 %   46.50 %   51.13 %   52.76 %   54.03 %

(1)
Includes gross revenues from hotels of $17,542, $17,213, $13,246, $24,779 and $20,007 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002, and September 30, 2002, respectively.

(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)
Rental Expenses include operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $8,742, $6,459, $5,391, $6,476 and $6,329 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(4)
For a quantitative reconciliation of the differences between FFO and net income available to common shareholders, see page 9.

(5)
For a quantitative reconciliation of the differences between FAD and FFO before net derivative gains/losses and after cash basis early surrender lease income, see page 10.

(6)
For additional detail, see page 10.

(7)
Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FFO per share before net derivative gains/losses and after cash basis early surrender lease income—diluted.

(8)
Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FAD.

(9)
For additional detail, see page 53.

6


Boston Properties, Inc.
Third Quarter 2003

CONSOLIDATED BALANCE SHEETS
(in thousands)

 
  September 30, 2003
  June 30,
2003

  March 31,
2003

  December 31, 2002
  September 30, 2002
 
 
  (unaudited)

  (unaudited)

  (unaudited)

   
  (unaudited)

 
ASSETS                                
Real estate   $ 8,060,525   $ 7,863,035   $ 7,745,475   $ 7,781,684   $ 8,139,450  
Development in progress     481,571     445,003     418,798     448,576     412,981  
Land held for future development     232,361     218,045     216,537     215,866     213,769  
Real estate held for sale                 224,585      
  Less accumulated depreciation     (952,754 )   (893,246 )   (846,002 )   (822,933 )   (836,418 )
   
 
 
 
 
 
  Total real estate     7,821,703     7,632,837     7,534,808     7,847,778     7,929,782  
Cash and cash equivalents     37,621     158,587     384,418     55,275     28,793  
Escrows     27,992     18,187     20,804     41,906     28,200  
Tenant and other receivables, net     21,813     21,185     23,193     20,458     48,716  
Accrued rental income, net     175,063     160,586     148,034     165,321     156,818  
Deferred charges, net     178,819     168,833     165,559     176,545     148,435  
Prepaid expenses and other assets     57,012     22,090     30,144     18,015     38,752  
Investments in unconsolidated joint ventures     88,632     93,904     101,794     101,905     101,819  
   
 
 
 
 
 
    Total assets   $ 8,408,655   $ 8,276,209   $ 8,408,754   $ 8,427,203   $ 8,481,315  
   
 
 
 
 
 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
Liabilities:                                
  Mortgage notes payable   $ 3,450,112   $ 3,349,134   $ 3,758,406   $ 4,267,119   $ 4,422,692  
  Unsecured senior notes, net of discount     1,470,231     1,470,148     1,221,707     747,375      
  Unsecured bridge loan                 105,683     1,000,000  
  Unsecured line of credit                 27,043     44,000  
  Accounts payable and accrued expenses     69,940     49,299     63,319     73,846     69,097  
  Dividends and distributions payable     83,972     84,030     81,128     81,226     81,329  
  Interest rate contracts     9,875     12,677     13,663     14,514     15,115  
  Accrued interest payable     44,010     56,088     37,534     25,141     18,265  
  Other liabilities     69,242     63,771     63,992     81,085     70,292  
   
 
 
 
 
 
    Total liabilities     5,197,382     5,085,147     5,239,749     5,423,032     5,720,790  
   
 
 
 
 
 
Commitments and contingencies                      
   
 
 
 
 
 
Minority interests     829,779     857,058     860,182     844,581     804,229  
   
 
 
 
 
 
Stockholders' Equity:                                
  Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding                      
  Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding                      
Common stock, $.01 par value, 250,000,000 shares authorized, 97,577,665, 97,028,911, 95,928,738, 95,362,990, and 95,273,202 outstanding, respectively     976     970     959     954     953  
  Additional paid-in capital     2,084,490     2,032,952     2,010,764     1,982,689     1,977,560  
  Earnings in excess of dividends/(dividends in excess of earnings)     322,530     327,222     325,114     198,586     (2,532 )
  Treasury common stock, at cost     (2,722 )   (2,722 )   (2,722 )   (2,722 )   (2,722 )
  Unearned compensation     (7,271 )   (7,734 )   (8,448 )   (2,899 )   (3,355 )
  Accumulated other comprehensive loss     (16,509 )   (16,684 )   (16,844 )   (17,018 )   (13,608 )
   
 
 
 
 
 
    Total stockholders' equity     2,381,494     2,334,004     2,308,823     2,159,590     1,956,296  
   
 
 
 
 
 
      Total liabilities and stockholders' equity   $ 8,408,655   $ 8,276,209   $ 8,408,754   $ 8,427,203   $ 8,481,315  
   
 
 
 
 
 

7


Boston Properties, Inc.
Third Quarter 2003

CONSOLIDATED INCOME STATEMENTS
(in thousands, except for per share amounts)
(unaudited)

 
  Three Months Ended
 
 
  30-Sep-03
  30-Jun-03
  31-Mar-03
  31-Dec-02
  30-Sep-02
 
Revenue:                                
  Rental                                
    Base Rent   $ 253,594   $ 248,848   $ 247,353   $ 253,948   $ 229,453  
    Recoveries from tenants     42,079     37,262     39,881     38,184     34,884  
    Parking and other     13,249     13,955     14,195     13,217     13,056  
   
 
 
 
 
 
      Total rental revenue     308,922     300,065     301,429     305,349     277,393  
  Hotel revenues     17,542     17,213     13,246     24,779     20,007  
  Development and management services     3,616     5,429     4,590     2,769     2,571  
  Interest and other     1,089     663     415     700     1,222  
   
 
 
 
 
 
      Total revenue     331,169     323,370     319,680     333,597     301,193  
   
 
 
 
 
 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
  Operating     66,526     57,909     61,188     59,328     61,553  
  Real estate taxes     40,878     37,780     37,914     38,969     33,565  
  Hotel operating     12,829     12,258     11,171     17,562     13,524  
  General and administrative     11,183     11,028     11,399     12,703     9,956  
  Interest (1)     75,343     75,447     73,645     71,337     65,476  
  Depreciation and amortization     53,455     50,742     49,824     52,188     43,933  
  Net derivative (gains)/losses     (885 )   991     932     1,461     5,284  
  Loss from early extinguishment of debt             1,474     2,386      
   
 
 
 
 
 
      Total expenses     259,329     246,155     247,547     255,934     233,291  
   
 
 
 
 
 
Income before minority interests and income from unconsolidated joint ventures     71,840     77,215     72,133     77,663     67,902  
Minority interest in property partnerships     563     245     397     162     720  
Income from unconsolidated joint ventures     1,343     1,353     2,658     2,083     2,530  
   
 
 
 
 
 
Income before minority interest in Operating Partnership     73,746     78,813     75,188     79,908     71,152  
Minority interest in Operating Partnership (2)     (18,117 )   (19,123 )   (18,523 )   (19,498 )   (18,071 )
   
 
 
 
 
 
Income before gains on sales of real estate and other assets     55,629     59,690     56,665     60,410     53,081  
Gains on sales of real estate and other assets, net of minority interest     1,341     3,546     52,912     187,562      
   
 
 
 
 
 
Income before gain on sales of land held for development     56,970     63,236     109,577     247,972     53,081  
Gain on sales of land held for development, net of minority interest                     3,644  
   
 
 
 
 
 
Income before discontinued operations     56,970     63,236     109,577     247,972     56,725  
Income from discontinued operations, net of minority interest             1,940     4,529     3,032  
Gains on sales of real estate from discontinued operations, net of minority interest             73,528     7,645     11,910  
   
 
 
 
 
 
Income before preferred dividend     56,970     63,236     185,045     260,146     71,667  
Preferred dividend                     (126 )
   
 
 
 
 
 
Net income available to common shareholders   $ 56,970   $ 63,236   $ 185,045   $ 260,146   $ 71,541  
   
 
 
 
 
 
INCOME PER SHARE OF COMMON STOCK (EPS)                                
  Net income available to common shareholders per share—basic   $ 0.59   $ 0.66   $ 1.93   $ 2.73   $ 0.75  
   
 
 
 
 
 
  Net income available to common shareholders per share—diluted   $ 0.57   $ 0.64   $ 1.91   $ 2.70   $ 0.74  
   
 
 
 
 
 

(1)
Interest expense is reported net of capitalized interest of $4,954, $4,601, $4,453, $4,719 and $4,684 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.
(2)
Equals minority interest share of 18.08%, 17.45%, 17.62%, 17.69%, and 17.76% of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

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

8


Boston Properties, Inc.
Third Quarter 2003

FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)

 
  Three Months Ended

 
  30-Sep-03
  30-Jun-03
  31-Mar-03
  31-Dec-02
  30-Sep-02
Net income available to common shareholders   $ 56,970   $ 63,236   $ 185,045   $ 260,146   $ 71,541
  Add:                              
    Preferred dividend                     126
    Minority interest in Operating Partnership     18,117     19,123     18,523     19,498     18,071
  Less:                              
    Minority interest in property partnerships     563     245     397     162     720
    Income from unconsolidated joint ventures     1,343     1,353     2,658     2,083     2,530
    Gain on sales of real estate and other assets, net of minority interest     1,341     3,546     52,912     187,562    
    Gain on sales of land held for development, net of minority interest                     3,644
    Income from discontinued operations, net of minority interest             1,940     4,529     3,032
    Gain on sales of real estate from discontinued operations, net of minority interest             73,528     7,645     11,910
   
 
 
 
 
Income before minority interests and income from unconsolidated joint ventures     71,840     77,215     72,133     77,663     67,902
Add:                              
  Real estate depreciation and amortization (1)     54,606     52,338     51,791     56,072     46,971
    Income from discontinued operations             2,355     5,503     3,687
    Income from unconsolidated joint ventures     1,343     1,353     2,658     2,083     2,530
    Loss from early extinguishment of debt associated with the sale of properties             1,474     2,386    
  Less:                              
    Minority property partnership's share of funds from operations     805     842     866     1,390     521
    Preferred dividends and distributions     5,183     5,852     5,771     5,926     6,162
   
 
 
 
 
Funds from operations (FFO)     121,801     124,212     123,774     136,391     114,407
  Add (subtract):                              
    Net derivative losses     (885 )   991     932     1,461     5,284
    Early surrender lease payments received — contractual basis                     667
   
 
 
 
 
FFO before net derivative gains/losses and after early surrender lease payments received   $ 120,916   $ 125,203   $ 124,706   $ 137,852   $ 120,358
   
 
 
 
 
FFO available to common shareholders before net derivative gains/losses and after early surrender lease payments received (2)   $ 99,057   $ 103,360   $ 102,735   $ 113,464   $ 98,980
   
 
 
 
 
FFO per share before net derivative gains/losses and after cash basis early surrender lease income — basic   $ 1.02   $ 1.07   $ 1.07   $ 1.19   $ 1.04
   
 
 
 
 
Weighted average shares outstanding — basic     97,360     96,531     95,733     95,313     94,904
   
 
 
 
 
FFO per share before net derivative gains/losses and after early surrender lease payments received — diluted   $ 0.98   $ 1.03   $ 1.03   $ 1.14   $ 1.00
   
 
 
 
 
FFO per share after net derivative gains/losses and before early surrender lease payments received — diluted   $ 0.99   $ 1.02   $ 1.02   $ 1.13   $ 0.95
   
 
 
 
 
Weighted average shares outstanding — diluted     107,231     107,408     105,955     105,631     105,725
   
 
 
 
 

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)

 
  September 30, 2003
  June 30, 2003
  March 31, 2003
  December 31, 2002
  September 30, 2002
 
  Income
(Numerator)

  Shares
(Denominator)

  Income
(Numerator)

  Shares
(Denominator)

  Income
(Numerator)

  Shares
(Denominator)

  Income
(Numerator)

  Shares
(Denominator)

  Income
(Numerator)

  Shares
(Denominator)

Basic FFO before net derivative gains/losses and after early surrender                                                  
lease income   $ 120,916   118,846   $ 125,203   116,931   $ 124,706   116,207   $ 137,852   115,800   $ 120,358   115,402
Effect of Dilutive Securities                                                  
Convertible Preferred Units     5,183   8,047     5,852   9,195     5,771   9,199     5,926   9,236     6,036   9,344
Convertible Preferred Stock                             126   200
Stock Options and other       1,823       1,682       1,022       1,082       1,276
   
 
 
 
 
 
 
 
 
 
Diluted FFO before net derivative gains/losses and after early surrender lease payments received   $ 126,099   128,716   $ 131,055   127,808   $ 130,477   126,428   $ 143,778   126,118   $ 126,520   126,222
   
 
 
 
 
 
 
 
 
 
Company's share of diluted FFO before net derivative gains/losses and after early surrender lease payments received (3)   $ 105,051   107,231   $ 110,137   107,408   $ 109,348   105,955   $ 120,422   105,631   $ 105,974   105,725
   
 
 
 
 
 
 
 
 
 
FFO per share before net derivative gains/losses and after early surrender lease payments received — basic   $ 1.02       $ 1.07       $ 1.07       $ 1.19       $ 1.04    
   
     
     
     
     
   
FFO per share before net derivative gains/losses and after early surrender lease payments received — diluted   $ 0.98       $ 1.03       $ 1.03       $ 1.14       $ 1.00    
   
     
     
     
     
   

(1)
Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,821, $2,266, $2,514, $2,848 and $2,170 less corporate related depreciation of $670, $670, $674, $733 and $733 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)
Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 81.92%, 82.55%, 82.38%, 82.31%, and 82.24%, respectively.

(3)
Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 83.31%, 84.04%, 83.81%, 83.76% and 83.76%, respectively.

9


Boston Properties, Inc.
Third Quarter 2003

Funds Available for Distribution (FAD)
(in thousands)

 
  Three Months Ended

 
 
  September 30, 2003
  June 30, 2003
  March 31, 2003
  December 31, 2002
  September 30, 2002
 
Funds from operations (FFO) before net derivative gains/losses and after cash basis early surrender lease income (see page 9)   $ 120,916   $ 125,203   $ 124,706   $ 137,852   $ 120,358  
Add: Non real estate depreciation     670     670     674     733     733  
  Fair value lease revenue (SFAS 141)     577     167              
  Less: Straight-line rent     (12,144 )   (10,687 )   (10,866 )   (11,938 )   (12,244 )
  Recurring capital expenditures     (3,415 )   (4,726 )   (1,960 )   (5,909 )   (4,266 )
  Hotel improvements, equipment upgrades and replacements     (353 )   (911 )   (405 )   (188 )   (394 )
  2nd generation tenant improvements and leasing commissions     (5,606 )   (6,105 )   (4,187 )   (8,173 )   (8,286 )
   
 
 
 
 
 
Funds available for distribution (FAD)   $ 100,645   $ 103,611   $ 107,962   $ 112,377   $ 95,901  
   
 
 
 
 
 


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

 
  Three Months Ended

 
 
  September 30, 2003
  June 30, 2003
  March 31, 2003
  December 31, 2002
  September 30, 2002
 
Excluding Capitalized Interest                                
Income before minority interests and income from unconsolidated joint ventures   $ 71,840   $ 77,215   $ 72,133   $ 77,663   $ 67,902  
Add:                                
  Discontinued operations             2,355     5,503     3,687  
  Interest expense     75,343     75,447     73,645     71,337     65,476  
  Depreciation     53,455     50,742     49,824     52,188     43,933  
  Net derivative (gains)/losses     (885 )   991     932     1,461     5,284  
  Prepayment penalty             1,474     2,386      
  Income from unconsolidated joint ventures     1,343     1,353     2,658     2,083     2,530  
  Discontinued Operations — depreciation             127     1,781     1,601  
  Discontinued Operations — interest expense             296     809     2,949  
  Fair value lease revenue (SFAS 141)     577     167              
Less:                                
  Straight-line rent     (12,144 )   (10,687 )   (10,866 )   (11,938 )   (12,244 )
   
 
 
 
 
 
Subtotal     189,529     195,228     192,578     203,273     181,118  
Divided by:                                
  Interest expense (1)     74,214     74,077     72,352     69,901     64,202  
  Interest expense — discontinued operations             296     809     2,949  
   
 
 
 
 
 
Total interest expense     74,214     74,077     72,648     70,710     67,151  
Interest Coverage Ratio     2.55     2.64     2.65     2.87     2.70  
   
 
 
 
 
 
Including Capitalized Interest                                
Income before minority interests and income from unconsolidated joint ventures   $ 71,840   $ 77,215   $ 72,133   $ 77,663   $ 67,902  
Add:                                
  Discontinued operations             2,355     5,503     3,687  
  Interest expense     75,343     75,447     73,645     71,337     65,476  
  Depreciation     53,455     50,742     49,824     52,188     43,933  
  Net derivative (gains)/losses     (885 )   991     932     1,461     5,284  
  Prepayment penantly             1,474     2,386      
  Income from unconsolidated joint ventures     1,343     1,353     2,658     2,083     2,530  
  Discontinued Operations — depreciation             127     1,781     1,601  
  Discontinued Operations — interest expense             296     809     2,949  
  Fair value lease revenue (SFAS 141)     577     167              
Less:                                
Straight-line rent     (12,144 )   (10,687 )   (10,866 )   (11,938 )   (12,244 )
   
 
 
 
 
 
Subtotal     189,529     195,228     192,578     203,273     181,118  
Divided by:                                
  Interest expense (1) (2)     79,168     78,678     76,805     74,763     68,867  
  Interest expense — discontinued operations             296     809     2,949  
   
 
 
 
 
 
    Total interest expense     79,168     78,678     77,101     75,572     71,816  
   
 
 
 
 
 
Interest Coverage Ratio     2.39     2.48     2.50     2.69     2.52  
   
 
 
 
 
 

(1)
Excludes amortization of financing costs of $1,129, $1,370, $1,293, $1,436 and $1,274 for the quarters ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)
Includes capitalized interest of $4,954, $4,601, $4,453, $4,719 and $4,684 for the quarters ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 31, 2002, respectively.

10



Boston Properties, Inc.
Third Quarter 2003


CAPITAL STRUCTURE


Debt
(in thousands)

 
  Aggregate Principal
September 30, 2003

Mortgage Notes Payable   $ 3,450,112
Unsecured Senior Notes, net of discount     1,470,231
Unsecured Line of Credit    
   
Total Debt   $ 4,920,343
   


Equity
(in thousands)

 
  Shares & Units
Outstanding

  Common
Stock
Equivalents

  Equivalent (1)
Common Stock   97,578   97,578   $ 4,241,716
Operating Partnership Units   22,372   22,372     972,511
Preferred Operating Partnership Units              
Series Two   5,401   7,087     308,071
       
 
Total Equity       127,037   $ 5,522,298
       
 
Total Market Capitalization           $ 10,442,641
           

(1)
Value based on September 30, 2003 closing price of $43.47 per share of common stock.

11



Boston Properties, Inc.
Third Quarter 2003


DEBT ANALYSIS


Debt Maturities and Principal Payments
(in thousands)

 
  2003 (1)
  2004
  2005
  2006
  2007
  Thereafter
  Total
 
Amount   $ 11,589   $ 424,116   $ 308,384   $ 306,983   $ 185,171   $ 3,684,100   $ 4,920,343  
Weighted Average Rate     7.07 %   4.20 %   6.56 %   6.27 %   6.59 %   6.66 %   6.41 %

(1)
Consists of remaining portion of 2003.


Unsecured Debt
Unsecured Line of Credit — Matures January 17, 2006
(in thousands)

Facility
  Outstanding
@9/30/03

  Letters of
Credit

  Remaining
Capacity
@9/30/03

$ 605,000   $   $ 6,670   $ 598,330


Unsecured Senior Notes
(in thousands)

Face Amount
@9/30/03

  Amount net of discount
@9/30/03

$ 1,475,000   $ 1,470,231


Unsecured and Secured Debt Analysis

 
  % of Total Debt
  Weighted
Average Rate

  Weighted Average
Maturity

Unsecured Debt   29.88 % 5.95 % 10.2 years
Secured Debt   70.12 % 6.61 % 5.2 years
   
 
 
Total Debt   100.00 % 6.41 % 6.7 years
   
 
 


Floating and Fixed Rate Debt Analysis

 
  % of Total Debt
  Weighted
Average Rate

  Weighted Average
Maturity

Floating Rate Debt   6.95 % 3.02 % 1.3 years
Fixed Rate Debt   93.05 % 6.67 % 7.1 years
   
 
 
Total Debt   100.00 % 6.41 % 6.7 years
   
 
 

12


Boston Properties, Inc.
Third Quarter 2003

Senior Unsecured Debt Covenant Compliance Ratios
(in thousands)

        In the fourth quarter of 2002 the Company's operating 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 September 30, 2003 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. 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.

 
  September 30, 2003
 
Total Assets:        
  Capitalized Property Value   $ 10,134,625  
  Cash and Cash Equivalents     37,621  
  Undeveloped Land, at Cost     232,361  
  Development in Process, at Cost (including Joint Venture %)     501,530  
   
 
Total Assets   $ 10,906,137  
   
 
Unencumbered Assets   $ 4,332,181  
   
 
  Secured Debt (Fixed and Variable) (1)   $ 3,438,204  
  Joint Venture Debt     158,682  
  Contingent Liabilities & Letters of Credit     19,740  
  Unsecured Debt (2)     1,475,000  
   
 
Total Outstanding Debt   $ 5,091,626  
   
 
Consolidated EBITDA:        
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)   $ 71,840  
  Add: Interest Expense (per Consolidated Income Statement)     75,343  
  Add: Depreciation and Amortization (per Consolidated Income Statement)     53,455  
  Less: Net derivative gains/losses (SFAS No. 133) (per Consolidated Income Statement)     (885 )
   
 
EBITDA     199,753  
  Add: Company share of unconsolidated joint venture EBITDA     7,510  
   
 
  Consolidated EBITDA   $ 207,263  
Adjusted Interest Expense:        
  Interest Expense (per Consolidated Income Statement)   $ 75,343  
  Add: Company share of unconsolidated joint venture interest expense     3,552  
  Less: amortization of financing costs     (1,129 )
   
 
Adjusted Interest Expense   $ 77,766  
   
 
Covenant Ratios

  Test

  Actual
 
Total Outstanding Debt/Total Assets   Less than 60%     46.7 %
Secured Debt/Total Assets   Less than 50%     33.0 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)   Greater than 1.50x     2.67  
Unencumbered Assets/ Unsecured Debt   Greater than 150%     293.7 %
       
 
Unencumbered Consolidated EBITDA       $ 83,504  
       
 
Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)         3.76  
       
 
% of unencumbered Consolidated EBITDA to Consolidated EBITDA         40.3 %
       
 
# of unencumbered properties         71  
       
 
(1)
Excludes Fair Value Adjustment of $11.9 million.
(2)
Excludes Debt Discount of $4.8 million.

13


Boston Properties, Inc.
Third Quarter 2003

DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)

Property
  2003
  2004
  2005
  2006
  2007
  Thereafter
  Total
Citigroup Center   $ 1,480   $ 6,191   $ 6,651   $ 7,145   $ 7,676   $ 483,253   $ 512,396
Times Square Tower         310,362                     310,362
Embarcadero Center One, Two and Federal Reserve     1,152     4,809     5,141     5,496     5,877     278,913     301,388
Prudential Center     1,115     4,591     4,919     5,256     5,619     259,705     281,205
280 Park Avenue     720     3,022     3,261     3,519     3,798     248,794     263,114
599 Lexington Avenue             225,000                 225,000
Embarcadero Center Four     856     3,544     3,797     4,061     4,346     129,711     146,315
Embarcadero Center Three     565     2,351     2,506     2,671     132,726         140,819
Riverfront Plaza     697     2,905     3,104     3,314     3,540     95,327     108,887
Democracy Center     470     1,961     2,103     2,257     2,421     93,728     102,940
Embarcadero Center West Tower     372     1,546     1,649     90,415             93,982
100 East Pratt Street     462     1,964     2,100     2,246     2,401     78,105     87,278
One Freedom Square     432     1,792     1,896     2,005     2,122     75,886     84,133
601 and 651 Gateway Boulevard                 82,163             82,163
One & Two Reston Overlook     210     65,908                     66,118
202, 206 & 214 Carnegie Center     156     663     719     780     845     58,217     61,380
New Dominion Technology Park, Building One         91     654     1,282     1,378     54,042     57,447
Reservoir Place     385     1,321     1,400     1,484     1,572     50,258     56,420
Capital Gallery     333     1,404     1,524     50,651             53,912
504, 506 & 508 Carnegie Center     257     1,052     1,136     1,221     1,314     40,915     45,895

14


Boston Properties, Inc.
Third Quarter 2003


DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)

Property
  2003
  2004
  2005
  2006
  2007
  Thereafter
  Total
10 & 20 Burlington Mall Rd & 91 Hartwell     110     688     741     795     855     35,589     38,778
10 Cambridge Center     144     607     659     715     777     31,436     34,338
New Dominion Technology Park, Bldg. 2             31,515                 31,515
1301 New York Avenue     313     1,315     1,417     1,531     1,651     23,409     29,636
Sumner Square     124     518     557     599     645     26,936     29,379
Eight Cambridge Center     133     557     601     649     702     24,486     27,128
510 Carnegie Center     142     588     635     683     735     23,519     26,302
Lockheed Martin Building     155     641     685     732     782     21,799     24,794
University Place     168     702     752     806     864     20,338     23,630
Reston Corporate Center     149     612     654     698     745     20,523     23,381
NIMA Building     128     530     566     604     644     17,785     20,257
Bedford Business Park     163     690     751     818     890     16,859     20,171
191 Spring Street     34     443     482     18,773             19,732
101 Carnegie Center     90     375     406     6,622             7,493
Montvale Center     42     173     189     6,762             7,166
Hilltop Business Center     32     200     214     230     246     4,336     5,258
   
 
 
 
 
 
 
      11,589     424,116     308,384     306,983     185,171     2,213,869     3,450,112
   
 
 
 
 
 
 
Unsecured Senior Notes                         1,470,231     1,470,231
Unsecured Line of Credit                            
   
 
 
 
 
 
 
    $ 11,589   $ 424,116   $ 308,384   $ 306,983   $ 185,171   $ 3,684,100   $ 4,920,343
   
 
 
 
 
 
 

15


Boston Properties, Inc.
Third Quarter 2003


UNCONSOLIDATED JOINT VENTURES
Miscellaneous Balance Sheet Information
(unaudited and in thousands)
as of September 30, 2003

 
  Market
Square
North

  Metropolitan
Square

  140
Kendrick
Street

  265
Franklin
Street

  901
New York
Avenue (1)

  801
New Jersey
Avenue (1)

  Combined
Total Equity (2)   $ 10,818   $ 32,085   $ 5,446   $ 23,113   $ 14,170   $ 3,000   $ 88,632
   
 
 
 
 
 
 
Mortgage/Construction loans payable (2)   $ 48,046   $ 69,305   $ 13,953   $ 18,897   $ 8,481   $   $ 158,682
   
 
 
 
 
 
 
BXP's nominal ownership percentage     50.00 %   51.00 %   25.00 %   35.00 %   25.00 %   50.00 %    
   
 
 
 
 
 
 


Results of Operations
(unaudited and in thousands)
for the three months ended September 30, 2003

 
  One
Freedom
Square (3)

  Market
Square
North

  Metropolitan
Square

  140
Kendrick
Street

  265
Franklin
Street

  Two
Freedom
Square (3)

  901
New York
Avenue (1)

  801
New Jersey
Avenue (1)

  Combined
 
REVENUE                                                        
Total revenue   $ 1,393   $ 5,133   $ 6,287   $ 2,805   $ 3,540   $ 1,477   $   $   $ 20,635 (4)
   
 
 
 
 
 
 
 
 
 
EXPENSES                                                        
Operating     236     1,519     2,142     474     1,850     219             6,440  
   
 
 
 
 
 
 
 
 
 
SUBTOTAL     1,157     3,614     4,145     2,331     1,690     1,258             14,195  
Interest     551     1,861     2,824     1,054     348     245             6,883  
Depreciation and amortization     281     1,348     1,162     350     693     206             4,040  
   
 
 
 
 
 
 
 
 
 
NET INCOME   $ 325   $ 405   $ 159   $ 927   $ 649   $ 807   $   $   $ 3,272  
   
 
 
 
 
 
 
 
 
 
BXP's share of net income   $ 81   $ 203   $ 81   $ 347 (5) $ 227   $ 404   $   $   $ 1,343  
BXP's share of depreciation & amortization     70     674     593     138     243     103             1,821  
   
 
 
 
 
 
 
 
 
 
BXP's share of Funds from Operations (FFO)   $ 151   $ 877   $ 674   $ 485 (5) $ 470   $ 507   $   $   $ 3,164  
   
 
 
 
 
 
 
 
 
 
(1)
Property is currently not in operation (i.e., under construction or undeveloped land).

(2)
Represents the Company's share.

(3)
The Company acquired the remaining outside interests in these joint ventures on August 5, 2003.

(4)
The impact of the straight-line rent adjustment increased revenue by $1,140 for the three months ended September 30, 2003.

(5)
Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.

16


Boston Properties, Inc.
Third Quarter 2003


UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)


Debt Maturities and Principal Payments
(in thousands)

 
  2003
  2004
  2005
  2006
  2007
  Thereafter
  Total
 
Amount   $ 423   $ 20,678   $ 10,406   $ 2,085   $ 2,255   $ 122,835   $ 158,682  
Weighted Average Rate     7.91 %   2.89 %   3.73 %   7.91 %   7.91 %   7.96 %   7.02 %


Floating and Fixed Rate Debt Analysis

 
  % of Total Debt
  Weighted
Average Rate

  Weighted Average
Maturity

   
Floating Rate Debt   17.25 % 2.53 % 1.4   years
Fixed Rate Debt   82.75 % 7.96 % 7.2   years
   
 
 
 
Total Debt   100.00 % 7.02 % 6.2   years
   
 
 
 


Debt Maturities and Principal Payments by Property
(in thousands)

Property

  2003
  2004
  2005
  2006
  2007
  Thereafter
  Total
Metropolitan Square (51%)*   $ 182   $ 764   $ 830   $ 901   $ 978   $ 65,650   $ 69,305
Market Square North (50%)*     204     860     926     1,001     1,080     43,975     48,046
265 Franklin Street (35%)*         18,897                     18,897
140 Kendrick Street (25%)*     37     157     169     183     197     13,210     13,953
901 New York Avenue (25%)*             8,481                 8,481
   
 
 
 
 
 
 
    $ 423   $ 20,678   $ 10,406   $ 2,085   $ 2,255   $ 122,835   $ 158,682
   
 
 
 
 
 
 
(*)
All amounts represent the Company's share.

17



Boston Properties, Inc.
Third Quarter 2003


PORTFOLIO OVERVIEW — SQUARE FOOTAGE
Rentable Square Footage of In-Service Properties by Location and Type of Property

Geographic Area
  Office (1)
  Office/Technical
  Industrial
  Total
  % of Total
 
Greater Boston   7,804,587 (2) 545,206   169,273   8,519,066   27.29 %
Greater Washington   6,249,534 (3) 970,865     7,220,399   23.13 %
Greater San Francisco   4,715,032   144,366   60,000   4,919,398   15.76 %
Midtown Manhattan   6,546,093       6,546,093   20.97 %
Princeton/East Brunswick, NJ   2,316,023       2,316,023   7.42 %
Baltimore, MD   635,223       635,223   2.03 %
Richmond, VA   900,137       900,137   2.88 %
Bucks County, PA       161,000   161,000   0.52 %
   
 
 
 
 
 
    29,166,629   1,660,437   390,273   31,217,339   100.00 %
   
 
 
 
 
 
% of Total   93.43 % 5.32 % 1.25 % 100.00 %    


Hotel Properties

Hotel Properties

  Number of
Rooms

  Square
Feet

  Long Wharf Marriott, Boston, MA   402   420,000
  Cambridge Center Marriott, Cambridge, MA   431   330,400
  Residence Inn by Marriott, Cambridge, MA   221   187,474
   
 
Total Hotel Properties   1,054   937,874
   
 


Structured Parking

 
  Number of
Spaces

  Square
Feet

Total Structured Parking   30,812   9,318,846
   
 
(1)
Includes approximately 1,300,000 square feet of retail space.

(2)
Includes 344,126 square feet at 265 Franklin Street which is 35% owned by Boston Properties and 380,987 square feet at 140 Kendrick Street which is 25% owned by Boston Properties.

(3)
Includes 585,220 square feet at Metropolitan Square which is 51% owned by Boston Properties and 401,279 square feet at Market Square North which is 50% owned by Boston Properties.

18



Boston Properties, Inc.
Third Quarter 2003


In-Service Property Listing
as of September 30, 2003

Greater Boston

  Sub Market
  Number of
Buildings

  Square Feet
  Leased %
  Annualized
Revenue
Per
Leased SF

  Encumbered
with secured
debt
(Y/N)

  Central
Business
District (CBD) or
Suburban (S)

Office                              
    800 Boylston Street—The Prudential Center   CBD Boston MA   1   1,175,739   90.8 % $ 38.07   Y   CBD
    111 Huntington Avenue—The Prudential Center   CBD Boston MA   1   853,672   99.0 %   49.12   N   CBD
    101 Huntington Avenue—The Prudential Center   CBD Boston MA   1   504,488   80.1 %   39.69   Y   CBD
(1)   The Shops at the Prudential Center   CBD Boston MA   1   535,755   95.7 %   50.47   Y   CBD
(2)   Shaws Supermarket at the Prudential Center   CBD Boston MA   1   57,235   100.0 %   44.79   N   CBD
    265 Franklin Street (35% ownership)   CBD Boston MA   1   344,126   74.6 %   54.88   Y   CBD
    One Cambridge Center   East Cambridge MA   1   215,385   93.5 %   44.20   N   CBD
    Three Cambridge Center   East Cambridge MA   1   107,484   100.0 %   31.56   N   CBD
    Eight Cambridge Center   East Cambridge MA   1   177,226   100.0 %   31.87   Y   CBD
    Ten Cambridge Center   East Cambridge MA   1   152,664   100.0 %   32.39   Y   CBD
    Eleven Cambridge Center   East Cambridge MA   1   79,616   100.0 %   43.49   N   CBD
    University Place   Mid-Cambridge MA   1   195,282   100.0 %   36.76   Y   CBD
    Reservoir Place   Route 128 Mass Turnpike MA   1   526,165   80.0 %   32.48   Y   S
    204 Second Avenue   Route 128 Mass Turnpike MA   1   40,974   52.7 %   36.56   N   S
    140 Kendrick Street (25% ownership)   Route 128 Mass Turnpike MA   3   380,987   100.0 %   27.53   Y   S
    170 Tracer Lane   Route 128 Mass Turnpike MA   1   75,073   56.0 %   25.50   N   S
    Waltham Office Center   Route 128 Mass Turnpike MA   3   129,041   85.1 %   29.98   N   S
    195 West Street   Route 128 Mass Turnpike MA   1   63,500   100.0 %   47.17   N   S
    200 West Street   Route 128 Mass Turnpike MA   1   248,048   100.0 %   35.15   N   S
(2)   Waltham Weston Corporate Center   Route 128 Mass Turnpike MA   1   306,354   56.3 %   28.40   N   S
    10 & 20 Burlington Mall Road   Route 128 Northwest MA   2   152,960   89.3 %   28.94   Y   S
    Bedford Business Park   Route 128 Northwest MA   1   90,000   100.0 %   20.70   Y   S
    32 Hartwell Avenue   Route 128 Northwest MA   1   69,154   100.0 %   29.38   N   S
    91 Hartwell Avenue   Route 128 Northwest MA   1   121,486   79.6 %   34.43   Y   S
    92 Hayden Avenue   Route 128 Northwest MA   1   31,100   100.0 %   51.99   N   S
    100 Hayden Avenue   Route 128 Northwest MA   1   55,924   100.0 %   8.92   N   S
    33 Hayden Avenue   Route 128 Northwest MA   1   80,872   43.3 %   30.46   N   S
    Lexington Office Park   Route 128 Northwest MA   2   166,735   83.0 %   29.62   N   S
    191 Spring Street   Route 128 Northwest MA   1   162,700   100.0 %   30.04   Y   S
    181 Spring Street   Route 128 Northwest MA   1   53,595   41.2 %   35.95   N   S
    201 Spring Street   Route 128 Northwest MA   1   102,500   100.0 %   32.91   N   S
    40 Shattuck Road   Route 128 Northwest MA   1   120,000   95.6 %   27.45   N   S
    Quorum Office Park   Route 128 Northwest MA   2   259,918   100.0 %   19.33   N   S
    Newport Office Park   Route 128 South MA   1   168,829   44.6 %   25.38   N   S
           
 
 
 
       
            41   7,804,587   88.5 % $ 37.32        
           
 
 
 
       
Office/Technical                              
    Fourteen Cambridge Center   East Cambridge MA   1   67,362   100.0 %   22.00   N   CBD
    Bedford Business Park   Route 128 Northwest MA   2   383,704   100.0 %   15.95   Y   S
    17 Hartwell Avenue   Route 128 Northwest MA   1   30,000   100.0 %   12.00   N   S
    164 Lexington Road   Route 128 Northwest MA   1   64,140   100.0 %   10.55   N   S
           
 
 
 
       
            5   545,206   100.0 % $ 15.84        
           
 
 
 
       
Industrial                              
    40-46 Harvard Street   Route 128 Southwest MA   1   169,273   0.0 %     N   S
           
 
 
 
       
        Total Greater Boston:   47   8,519,066   87.5 %            
           
 
 
 
       

(1)
93,856 square feet of space is unencumbered.

(2)
Not included in same property analysis

19



Boston Properties, Inc.
Third Quarter 2003


In-Service Property Listing
as of September 30, 2003

Greater Washington, DC

  Sub Market
  Number of
Buildings

  Square Feet
  Leased %
  Annualized
Revenue
Per
Leased SF

  Encumbered
with secured
debt
(Y/N)

  Central
Business
District (CBD) or
Suburban (S)

Office                              
    Capital Gallery   Southwest Washington DC   1   396,894   100.0 % $ 37.68   Y   CBD
    500 E Street, N.W.   Southwest Washington DC   1   242,769   100.0 %   33.65   N   CBD
    Metropolitan Square (51% ownership)   East End Washington DC   1   585,220   98.2 %   40.01   Y   CBD
    1301 New York Avenue   East End Washington DC   1   188,358   100.0 %   30.49   Y   CBD
    Market Square North (50% ownership)   East End Washington DC   1   401,279   100.0 %   45.07   Y   CBD
    Sumner Square   CBD Washington DC   1   207,620   100.0 %   35.15   Y   CBD
    Decoverly Two   Montgomery County MD   1   77,747   100.0 %   24.79   N   S
    Decoverly Three   Montgomery County MD   1   77,040   93.1 %   25.92   N   S
    Democracy Center   Montgomery County MD   3   680,644   87.0 %   30.45   Y   S
    Montvale Center   Montgomery County MD   1   120,823   85.8 %   24.45   Y   S
    2600 Tower Oaks Boulevard   Montgomery County MD   1   178,887   100.0 %   33.10   N   S
    Orbital Sciences 1&3   Loudoun County   2   176,726   100.0 %   23.67   N   S
    Orbital Sciences 2   Loudoun County   1   160,502   100.0 %   24.01   N   S
    The Arboretum   Fairfax County VA   1   95,584   100.0 %   26.34   N   S
(1)   One Freedom Square   Fairfax County VA   1   410,308   100.0 %   34.34   Y   S
(1)   Two Freedom Square   Fairfax County VA   1   422,504   99.6 %   34.13   N   S
    One Reston Overlook   Fairfax County VA   1   312,685   100.0 %   24.46   Y   S
    Two Reston Overlook   Fairfax County VA   1   131,594   82.2 %   32.91   Y   S
(1)   One Discovery Square   Fairfax County VA   1   181,019   100.0 %   36.68   N   S
(1)   Two Discovery Square   Fairfax County VA   1   185,970   92.8 %   32.21   N   S
    New Dominion Technology Park   Fairfax County VA   1   235,201   100.0 %   26.86   Y   S
    Reston Corporate Center   Fairfax County VA   2   261,046   100.0 %   32.56   Y   S
    Lockheed Martin Building   Fairfax County VA   1   255,244   100.0 %   30.59   Y   S
    NIMA Building   Fairfax County VA   1   263,870   100.0 %   29.44   Y   S
           
 
 
 
       
            28   6,249,534   97.4 % $ 32.90        
           
 
 
 
       
Office/Technical                              
(1)   Broad Run Business Park   Loudoun County   1   127,226   54.7 %   22.18   N   S
    Sugarland Business Park, Building One   Fairfax County VA   1   52,797   22.8 %   22.67   N   S
    Sugarland Business Park, Building Two   Fairfax County VA   1   59,215   65.9 %   20.69   N   S
    7435 Boston Boulevard   Fairfax County VA   1   103,557   82.3 %   15.59   N   S
    7451 Boston Boulevard   Fairfax County VA   1   47,001   100.0 %   20.97   N   S
    7450 Boston Boulevard   Fairfax County VA   1   62,402   100.0 %   20.43   N   S
    7374 Boston Boulevard   Fairfax County VA   1   57,321   100.0 %   13.88   N   S
    8000 Grainger Court   Fairfax County VA   1   90,465   36.9 %   16.20   N   S
    7500 Boston Boulevard   Fairfax County VA   1   79,971   100.0 %   14.63   N   S
    7501 Boston Boulevard   Fairfax County VA   1   75,756   100.0 %   23.52   N   S
    7601 Boston Boulevard   Fairfax County VA   1   103,750   100.0 %   14.17   N   S
    7375 Boston Boulevard   Fairfax County VA   1   26,865   100.0 %   17.82   N   S
    8000 Corporate Court   Fairfax County VA   1   52,539   100.0 %   10.51   N   S
    7300 Boston Boulevard   Fairfax County VA   1   32,000   100.0 %   20.86   N   S
           
 
 
 
       
            14   970,865   80.0 % $ 17.60        
           
 
 
 
       
        Total Greater Washington:   42   7,220,399   95.1 %            
           
 
 
             

(1)
Not included in same property analysis

20



Boston Properties, Inc.
Third Quarter 2003


In-Service Property Listing
as of September 30, 2003

Midtown Manhattan

  Sub Market
  Number of
Buildings

  Square Feet
  Leased %
  Annualized
Revenue
Per
Leased SF

  Encumbered
with secured
debt
(Y/N)

  Central
Business
District (CBD) or
Suburban (S)

Office                              
  599 Lexington Avenue   Park Avenue NY   1   1,019,341   95.4 % $ 64.14   Y   CBD
  280 Park Avenue   Park Avenue NY   1   1,170,080   98.5 %   57.28   Y   CBD
  Citigroup Center   Park Avenue NY   1   1,576,803   99.9 %   60.62   Y   CBD
(1) 399 Park Avenue   Park Avenue NY   1   1,678,090   99.5 %   70.36   N   CBD
  5 Times Square   Times Square NY   1   1,101,779   100.0 %   53.22   N   CBD
         
 
 
 
       
      Total Midtown Manhattan:   5   6,546,093   98.9 % $ 61.81        
         
 
 
 
       
Princeton/East Brunswick, NJ                              
Office                              
  101 Carnegie Center   Princeton NJ   1   123,659   100.0 % $ 28.19   Y   S
  104 Carnegie Center   Princeton NJ   1   102,830   85.2 %   33.07   N   S
  105 Carnegie Center   Princeton NJ   1   69,648   100.0 %   29.39   N   S
  201 Carnegie Center   Princeton NJ     6,500   100.0 %   27.42   N   S
  202 Carnegie Center   Princeton NJ   1   128,730   97.6 %   30.78   Y   S
  206 Carnegie Center   Princeton NJ   1   161,763   100.0 %   28.98   Y   S
  210 Carnegie Center   Princeton NJ   1   161,112   100.0 %   30.82   N   S
  211 Carnegie Center   Princeton NJ   1   47,025   100.0 %   25.51   N   S
  212 Carnegie Center   Princeton NJ   1   148,233   98.5 %   32.47   N   S
  214 Carnegie Center   Princeton NJ   1   150,416   95.4 %   29.38   Y   S
  302 Carnegie Center   Princeton NJ   1   65,135   95.5 %   31.65   N   S
  502 Carnegie Center   Princeton NJ   1   116,374   95.3 %   32.64   N   S
  504 Carnegie Center   Princeton NJ   1   121,990   100.0 %   27.67   Y   S
  506 Carnegie Center   Princeton NJ   1   136,213   88.3 %   29.82   Y   S
  508 Carnegie Center   Princeton NJ   1   131,085   100.0 %   27.73   Y   S
  510 Carnegie Center   Princeton NJ   1   234,160   100.0 %   27.30   Y   S
  One Tower Center   East Brunswick NJ   1   411,150   84.3 %   34.09   N   S
         
 
 
 
       
      Total Princeton/East Brunswick, NJ:   16   2,316,023   95.0 % $ 30.31        
         
 
 
 
       
Greater San Francisco                              
Office                              
  Embarcadero Center One   CBD San Francisco CA   1   836,584   96.2 % $ 42.81   Y   CBD
  Embarcadero Center Two   CBD San Francisco CA   1   779,219   86.9 %   47.06   Y   CBD
  Embarcadero Center Three   CBD San Francisco CA   1   773,693   86.3 %   42.04   Y   CBD
  Embarcadero Center Four   CBD San Francisco CA   1   936,432   91.1 %   62.78   Y   CBD
  Federal Reserve   CBD San Francisco CA   1   149,592   99.8 %   49.19   Y   CBD
  West Tower   CBD San Francisco CA   1   473,774   98.6 %   44.22   Y   CBD
(1) 611 Gateway   South San Francisco CA   1   250,825   0.0 %     N   S
  601 and 651 Gateway   South San Francisco CA   2   514,913   81.8 %   34.76   Y   S
         
 
 
 
       
          9   4,715,032   85.7 % $ 47.17        
         
 
 
 
       
Office/Technical                              
         
 
 
 
       
  Hilltop Office Center   South San Francisco CA   9   144,366   74.9 % $ 14.10   Y   S
         
 
 
 
       
Industrial                              
  560 Forbes Blvd   South San Francisco CA   1   40,000   100.0 %   10.62   N   S
  430 Rozzi Place   South San Francisco CA   1   20,000   100.0 %   12.09   N   S
         
 
 
 
       
          2   60,000   100.0 % $ 11.11        
         
 
 
 
       
      Total Greater San Francisco:   20   4,919,398   85.5 %            
         
 
 
             

(1)
Not included in same property analysis

21



Boston Properties, Inc.
Third Quarter 2003


In-Service Property Listing
as of September 30, 2003

 
 
  Sub Market
  Number of
Buildings

  Square Feet
  Leased %
  Annualized
Revenue
Per
Leased SF

  Encumbered
with secured
debt
(Y/N)

  Central
Business
District (CBD) or
Suburban (S)

Baltimore, MD                              
Office                              
         
 
 
 
       
  100 East Pratt Street   Baltimore MD   1   635,223   98.5 % $ 30.70   Y   CBD
         
 
 
 
       
Richmond, VA                              
Office                              
  Riverfront Plaza   Richmond VA   1   900,137   88.9 % $ 24.84   Y   CBD
         
 
 
 
       
Bucks County, PA                              
Industrial                              
  38 Cabot Boulevard   Bucks County PA   1   161,000   100.0 % $ 4.81   N   S
         
 
 
 
       
      Total In-Service Properties:   133   31,217,339   92.2 %            
         
 
 
             

22



Boston Properties, Inc.
Third Quarter 2003


TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION


TOP 20 TENANTS BY SQUARE FEET LEASED

 
  Tenant

  Sq. Ft.
  % of
Portfolio

 
1   U.S. Government   1,397,980   4.48 %
2   Citibank, N.A.   1,231,068   3.94 %
3   Ernst and Young   1,064,939   3.41 %
4   Shearman & Sterling   585,808   1.88 %
5   Lockheed Martin Corporation   570,314   1.83 %
6   Gillette Company   485,932   1.56 %
7   Parametric Technology Corp.   470,987 (1) 1.51 %
8   Wachovia   456,533   1.46 %
9   Lehman Brothers   436,723   1.40 %
10   Washington Group International   365,245   1.17 %
11   Deutsche Bank Trust   346,617   1.11 %
12   Orbital Sciences Corporation   337,228   1.08 %
13   TRW, Inc.   309,689   0.99 %
14   T. Rowe Price Associates, Inc.   304,129   0.97 %
15   Hunton & Williams   296,671   0.95 %
16   Kirkland & Ellis   294,821   0.94 %
17   Digitas   279,182   0.89 %
18   Bingham McCutchen   267,905   0.86 %
19   Accenture   265,622   0.85 %
20   Tellabs Operations   259,918   0.83 %

 

 

Total % of Portfolio Square Feet

 

 

 

32.12

%

 

 

Total % of Portfolio Revenue

 

 

 

35.18

%


Major Signed Deals for Future Development

Tenant

  Property
  Sq. Ft.
U.S. Government   New Dominion Tech.   257,400
Finnegan Henderson Farabow Garrett & Dunner, LLP   901 New York Ave.   251,337
O'Melveny & Myers   Times Square Tower   220,887

(1)
Includes 380,987 square feet of space in a property in which Boston Properties has a 25% interest.


TENANT DIVERSIFICATION (GROSS RENT) *

         GRAPHIC

*
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.
Third Quarter 2003


PORTFOLIO OVERVIEW

Percentage of Rental Revenues Less Operating Expenses and Real Estate Taxes for In-Service Properties by Location and Type of Property for the Quarter Ended September 30, 2003

Geographic Area

  Office (1)
  Office/
Technical

  Industrial
  Hotel
  Total
 
Greater Boston   20.8 % 0.8 %   2.3 % 23.9 %
Greater Washington   16.0 % 1.1 %     17.0 %
Greater San Francisco   15.3 %   0.1 %   15.4 %
Midtown Manhattan   35.0 %       35.0 %
Princeton/East Brunswick, NJ   5.0 %   0.1 %   5.1 %
Baltimore, MD   1.8 %       1.8 %
Richmond, VA   1.8 %       1.8 %
Bucks County, PA            
   
 
 
 
 
 
  Total   95.6 % 1.9 % 0.2 % 2.3 % 100.0 %
   
 
 
 
 
 
Geographic Area

  CBD
  Suburban
  Total
 
Greater Boston   17.0 % 6.9 % 23.9 %
Greater Washington   5.0 % 12.0 % 17.0 %
Greater San Francisco   13.6 % 1.7 % 15.3 %
Midtown Manhattan   35.0 %   35.0 %
Princeton/East Brunswick, NJ     5.1 % 5.1 %
Baltimore, MD   1.8 %   1.8 %
Richmond, VA   1.8 %   1.8 %
Bucks County, PA     0.1 % 0.1 %
   
 
 
 
Total   74.2 % 25.8 % 100.0 %
   
 
 
 

(1) Includes retail space at Prudential Center and Embarcadero Center.

24




Boston Properties, Inc.
Third Quarter 2003

OCCUPANCY ANALYSIS

Same Property Occupancy—By Location
 
  CBD
  Suburban
  Total
Location

  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
Greater Boston   92.3%   93.1%   84.2%   95.1%   88.6%   94.0%
Greater Washington   99.5%   99.6%   92.9%   96.5%   95.2%   97.6%
Midtown Manhattan   98.6%   98.6%       98.6%   98.6%
Baltimore, MD   98.5%   98.2%       98.5%   98.2%
Princeton/East Brunswick, NJ       95.0%   93.0%   95.0%   93.0%
Richmond, VA   88.9%   92.0%       88.9%   92.0%
Greater San Francisco   91.6%   93.8%   60.7%   64.4%   85.5%   88.1%
Bucks County, PA       100.0%   100.0%   100.0%   100.0%
   
 
 
 
 
 
  Total Portfolio   94.9%   95.8%   87.7%   92.5%   92.0%   94.5%
   
 
 
 
 
 
Same Property—By Type of Property

 
  CBD
  Suburban
  Total
Location

  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
Total Office Portfolio   94.9%   95.8%   88.9%   91.9%   92.8%   94.4%
Total Office/Technical Portfolio   100.0%   100.0%   88.0%   94.7%   88.5%   95.0%
Total Industrial Portfolio       56.6%   100.0%   56.6%   100.0%
   
 
 
 
 
 
Total Portfolio   94.9%   95.8%   87.7%   92.5%   92.0%   94.5%
   
 
 
 
 
 

25




Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE OFFICE PROPERTIES

Lease Expirations
Year of Lease Expiration
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Current Annualized Revenues Under Expiring Leases p.s.f.
  Annualized Revenues Under Expiring Leases with future step-ups
  Annualized Revenues Under Expiring Leases with future step-ups p.s.f.
  Percentage of Total Square Feet
2003   460,096   $ 15,611,328   $ 33.93   $ 15,611,328   $ 33.93   1.65%
2004   1,863,303     75,138,566     40.33     75,269,801     40.40   6.69%
2005   2,271,106     84,369,599     37.15     85,730,089     37.75   8.15%
2006   2,910,482     120,169,346     41.29     123,415,280     42.40   10.44%
2007   2,035,274     79,252,003     38.94     82,675,081     40.62   7.30%
2008   1,448,094     62,313,825     43.03     64,790,712     44.74   5.20%
2009   2,758,876     104,958,044     38.04     112,754,890     40.87   9.90%
2010   1,631,917     71,394,248     43.75     78,967,016     48.39   5.86%
2011   2,673,009     109,370,521     40.92     125,287,261     46.87   9.59%
2012   2,093,045     97,010,634     46.35     105,087,278     50.21   7.51%
Thereafter   5,672,395     273,074,052     48.14     327,484,728     57.73   20.35%
Occupancy By Location*
 
  CBD
  Suburban
  Total
Location

  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
Greater Boston   92.2%   92.7%   83.7%   94.4%   88.5%   93.5%
Greater Washington   99.5%   99.6%   96.5%   97.9%   97.4%   98.7%
Midtown Manhattan   98.9%   98.2%       98.9%   98.2%
Baltimore, MD   98.5%   97.2%       98.5%   97.2%
Princeton/East Brunswick, NJ       95.0%   93.0%   95.0%   93.0%
Richmond, VA   88.9%   92.0%       88.9%   92.0%
Greater San Francisco   91.6%   93.8%   55.0%   57.2%   85.7%   87.9%
Bucks County, PA   n/a   n/a   n/a   n/a   n/a   n/a
   
 
 
 
 
 
  Total Portfolio   95.3%   96.2%   89.1%   92.5%   93.0%   95.0%
   
 
 
 
 
 

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

26



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE OFFICE/TECHNICAL PROPERTIES
 
Lease Expirations
 
Year of Lease
Expiration

  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Current Annualized Revenues Under Expiring Leases p.s.f.
  Annualized Revenues Under Expiring Leases with future step-ups
  Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.
  Percentage of Total Square Feet
 
2003   14,100   $ 239,599   $ 16.99   $ 239,599   $ 16.99   0.85 %
2004   98,546     1,787,360     18.14     1,795,467     18.22   5.93 %
2005   156,284     2,235,477     14.30     2,294,794     14.68   9.41 %
2006   300,104     4,369,484     14.56     4,408,037     14.69   18.07 %
2007   317,912     5,566,352     17.51     5,915,503     18.61   19.15 %
2008   61,338     1,351,067     22.03     1,387,593     22.62   3.69 %
2009                      
2010   79,971     1,169,716     14.63     1,171,896     14.65   4.82 %
2011   137,321     2,378,584     17.32     2,578,584     18.78   8.27 %
2012   72,362     1,635,627     22.60     1,817,191     25.11   4.36 %
Thereafter   205,304     3,680,039     17.92     4,291,374     20.90   12.36 %
Occupancy By Location
 
 
  CBD
  Suburban
  Total
 
Location

 
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
 
Greater Boston   100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Greater Washington       80.0 % 93.1 % 80.0 % 93.1 %
Midtown Manhattan   n/a   n/a   n/a   n/a   n/a   n/a  
Baltimore, MD   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  
Richmond, VA   n/a   n/a   n/a   n/a   n/a   n/a  
Greater San Francisco       74.9 % 87.5 % 74.9 % 87.5 %
Bucks County, PA   n/a   n/a   n/a   n/a   n/a   n/a  
   
 
 
 
 
 
 
  Total Portfolio   100.0 % 100.0 % 85.5 % 94.8 % 86.1 % 95.0 %
   
 
 
 
 
 
 

27



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE INDUSTRIAL PROPERTIES
 
Lease Expirations
 
Year of Lease
Expiration

  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Current Annualized Revenues Under Expiring Leases p.s.f.
  Annualized Revenues Under Expiring Leases with future step-ups
  Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.
  Percentage of Total Square Feet
 
2003     $   $   $   $    
2004   201,000     1,199,258     5.97     1,208,858     6.01   51.50 %
2005                      
2006                      
2007   20,000     241,890     12.09     260,859     13.04   5.12 %
2008                      
2009                      
2010                      
2011                      
2012                      
Thereafter                      
Occupancy By Location
 
 
  CBD
  Suburban
  Total
 
Location

 
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
 
Greater Boston       0.0 % 100.0 % 0.0 % 100.0 %
Greater Washington   n/a   n/a   n/a   n/a   n/a   n/a  
Midtown Manhattan   n/a   n/a   n/a   n/a   n/a   n/a  
Baltimore, MD   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  
Richmond, VA   n/a   n/a   n/a   n/a   n/a   n/a  
Greater San Francisco       100.0 % 100.0 % 100.0 % 100.0 %
Bucks County, PA       100.0 % 100.0 % 100.0 % 100.0 %
   
 
 
 
 
 
 
  Total Portfolio       56.6 % 100.0 % 56.6 % 100.0 %
   
 
 
 
 
 
 

28



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE RETAIL PROPERTIES
 
Lease Expirations
 
Year of Lease Expiration
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Current Annualized Revenues Under Expiring Leases p.s.f.
  Annualized Revenues Under Expiring Leases with future step-ups
  Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.
  Percentage of Total Square Feet
 
2003   30,940   $ 2,208,541   $ 71.38   $ 2,213,059   $ 71.53   2.38 %
2004   76,004     5,920,231     77.89     5,809,735     76.44   5.85 %
2005   106,602     4,786,977     44.91     4,828,942     45.30   8.21 %
2006   58,475     3,031,003     51.83     3,053,572     52.22   4.50 %
2007   44,722     2,208,770     49.39     2,329,564     52.09   3.44 %
2008   80,995     3,927,609     48.49     4,079,165     50.36   6.24 %
2009   40,371     1,882,762     46.64     1,961,945     48.60   3.11 %
2010   83,166     3,400,687     40.89     3,827,111     46.02   6.40 %
2011   42,241     2,642,233     62.55     3,059,400     72.43   3.25 %
2012   103,652     4,936,019     47.62     5,577,803     53.81   7.98 %
Thereafter   631,547     32,323,002     51.18     39,959,231     63.27   48.63 %

29



Boston Properties, Inc.
Third Quarter 2003

GRAND TOTAL OF ALL IN-SERVICE PROPERTIES
 
Lease Expiration
 
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
 
2003   505,136   $ 18,059,468   $ 35.75   $ 18,063,986   $ 35.76   1.6 %
2004   2,238,853     84,045,414     37.54     84,083,861     37.56   7.2 %
2005   2,533,992     91,392,053     36.07     92,853,825     36.64   8.1 %
2006   3,269,061     127,569,833     39.02     130,876,889     40.04   10.5 %
2007   2,417,908     87,269,016     36.09     91,181,006     37.71   7.7 %
2008   1,590,427     67,592,500     42.50     70,257,471     44.18   5.1 %
2009   2,799,247     106,840,806     38.17     114,716,836     40.98   9.0 %
2010   1,795,054     75,964,652     42.32     83,966,023     46.78   5.8 %
2011   2,852,571     114,391,338     40.10     130,925,245     45.90   9.1 %
2012   2,269,059     103,582,279     45.65     112,482,271     49.57   7.3 %
Thereafter   6,439,692     307,534,238     47.76     369,810,584     57.43   20.6 %
Occupancy By Location
 
 
  CBD
  Suburban
  Total
 
Location

 
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
  30-Sep-03
  30-Sep-02
 
Greater Boston   92.4 % 92.8 % 82.1 % 95.3 % 87.5 % 94.0 %
Greater Washington   99.5 % 99.6 % 93.4 % 97.0 % 95.1 % 98.1 %
Midtown Manhattan   98.9 % 98.2 %     98.9 % 98.2 %
Baltimore, MD   98.5 % 97.2 %     98.5 % 97.2 %
Princeton/East Brunswick, NJ       95.0 % 93.0 % 95.0 % 93.0 %
Richmond, VA   88.9 % 92.0 %     88.9 % 92.0 %
Greater San Francisco   91.6 % 93.8 % 60.7 % 71.0 % 85.5 % 88.6 %
Bucks County, PA       100.0 % 100.0 % 100.0 % 100.0 %
   
 
 
 
 
 
 
  Total Portfolio   95.3 % 96.2 % 87.7 % 93.2 % 92.2 % 95.1 %
   
 
 
 
 
 
 

30



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER BOSTON PROPERTIES
Lease Expirations—Greater Boston
 
  OFFICE
  OFFICE/TECHNICAL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  2003   24,416   $ 1,022,730   $ 41.89   $ 1,022,731   $ 41.89     $   $   $   $
  2004   359,728     12,537,257     34.85     12,568,411     34.94                  
  2005   808,839     32,148,679     39.75     32,505,102     40.19                  
  2006   526,783     18,583,562     35.28     18,683,040     35.47   253,704     3,631,745     14.31     3,631,745     14.31
  2007   464,403     17,829,480     38.39     19,124,694     41.18   144,140     1,940,579     13.46     2,233,859     15.50
  2008   472,742     15,036,715     31.81     16,041,522     33.93                  
  2009   1,017,325     37,142,146     36.51     40,100,431     39.42                  
  2010   197,403     6,814,517     34.52     7,629,593     38.65                  
  2011   788,262     28,926,068     36.70     34,249,680     43.45   80,000     1,582,874     19.79     1,782,874     22.29
  2012   608,127     22,200,272     36.51     24,567,759     40.40   72,362     1,635,627     22.60     1,817,191     25.11
Thereafter   882,608     36,104,692     40.91     42,246,129     47.87                  
 
  INDUSTRIAL
  RETAIL
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

  2003     $   $   $   $   9,777   $ 1,229,150   $ 125.72   $ 1,216,598   $ 124.43
  2004                     41,820     4,214,114     100.77     4,103,618     98.13
  2005                     68,221     2,760,122     40.46     2,760,818     40.47
  2006                     14,999     1,023,580     68.24     1,024,745     68.32
  2007                     2,307     188,738     81.81     183,589     79.58
  2008                     13,965     1,089,231     78.00     1,071,231     76.71
  2009                     8,408     477,863     56.83     488,453     58.09
  2010                     37,110     1,384,737     37.31     1,458,957     39.31
  2011                     12,551     649,793     51.77     705,433     56.21
  2012                     52,949     1,882,831     35.56     1,975,930     37.32
Thereafter                     416,081     16,378,814     39.36     19,284,009     46.35

31



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER BOSTON PROPERTIES
Quarterly Lease Expirations—Greater Boston
 
  OFFICE
  OFFICE/TECHNICAL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized Revenues Under
Expiring Leases with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Q1 2003     $   $   $   $     $   $   $   $
  Q2 2003                                    
  Q3 2003                                    
  Q4 2003   24,416     1,022,731     41.89     1,022,731     41.89                  
   
 
 
 
 
 
 
 
 
 
Total 2003   24,416   $ 1,022,731   $ 41.89   $ 1,022,731   $ 41.89     $   $   $   $
   
 
 
 
 
 
 
 
 
 
  Q1 2004   14,495   $ 718,726   $ 49.58   $ 718,726   $ 49.58     $   $   $   $
  Q2 2004   85,089     2,814,542     33.08     2,814,542     33.08                  
  Q3 2004   154,311     5,414,278     35.09     5,418,187     35.11                  
  Q4 2004   105,833     3,589,711     33.92     3,616,956     34.18                  
   
 
 
 
 
 
 
 
 
 
Total 2004   359,728   $ 12,537,257   $ 34.85   $ 12,568,411   $ 34.94     $   $   $   $
   
 
 
 
 
 
 
 
 
 
 
  INDUSTRIAL
  RETAIL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under Expiring Leases with future step-ups

  Per
Square
Foot

  Q1 2003     $   $   $   $       $   $   $   $
  Q2 2003                                      
  Q3 2003                                      
  Q4 2003                       9,777     1,229,150     125.72     1,216,598     124.43
   
 
 
 
 
 
 
 
 
 
Total 2003         $   $   $     9,777   $ 1,229,150   $ 125.72   $ 1,216,598   $ 124.43
   
 
 
 
 
 
 
 
 
 
  Q1 2004     $   $       $     21,339   $ 1,748,559   $ 81.94   $ 1,693,059   $ 79.34
  Q2 2004                       10,579     1,279,419     120.94     1,222,419     115.55
  Q3 2004                       3,347     526,920     157.43     502,920     150.26
  Q4 2004                       6,555     659,216     100.57     685,220     104.53
   
 
 
 
 
 
 
 
 
 
Total 2004     $   $   $   $   $ 41,820   $ 4,214,114   $ 100.77   $ 4,103,618   $ 98.13
   
 
 
 
 
 
 
 
 
 

32



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER WASHINGTON PROPERTIES
Lease Expirations—Greater Washington
 
  OFFICE
  OFFICE/TECHNICAL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

2003   36,005   $ 1,018,244   $ 28.28   $ 1,018,244   $ 28.28   7,000   $ 119,551   $ 17.08   $ 119,551   $ 17.08
2004   203,124     7,824,752     38.52     7,870,542     38.75   81,199     1,500,596     18.48     1,507,083     18.56
2005   353,472     12,358,560     34.96     12,772,956     36.14   101,345     1,482,016     14.62     1,518,693     14.99
2006   420,928     12,258,118     29.12     12,885,408     30.61   33,400     541,107     16.20     569,160     17.04
2007   370,671     12,646,805     34.12     13,091,452     35.32   163,422     3,490,594     21.36     3,523,244     21.56
2008   199,439     6,228,669     31.23     6,971,891     34.96   57,730     1,298,372     22.49     1,336,615     23.15
2009   980,947     32,412,133     33.04     33,809,067     34.47                  
2010   773,484     28,201,626     36.46     31,610,890     40.87   79,971     1,169,716     14.63     1,171,896     14.65
2011   1,065,677     33,191,364     31.15     39,155,901     36.74   57,321     795,710     13.88     795,710     13.88
2012   435,506     15,678,599     36.00     19,553,783     44.90                  
Thereafter   1,131,096     34,790,156     30.76     43,160,957     38.16   205,304     3,680,039     17.92     4,291,374     20.90
 
  INDUSTRIAL
  RETAIL
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

2003     $   $   $   $     $   $   $   $
2004                     2,151     103,154     47.96     103,154     47.96
2005                     4,274     141,964     33.22     143,882     33.66
2006                     3,309     114,577     34.63     114,942     34.74
2007                     16,548     425,319     25.70     448,025     27.07
2008                     16,338     598,212     36.61     685,147     41.94
2009                     875     41,744     47.71     42,211     48.24
2010                     10,277     373,278     36.32     433,983     42.23
2011                     11,221     475,957     42.42     535,392     47.71
2012                     10,046     265,496     26.43     324,961     32.35
Thereafter                     36,415     1,459,883     40.09     1,891,343     51.94

33



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER WASHINGTON PROPERTIES
Quarterly Lease Expirations—Greater Washington
 
  OFFICE
  OFFICE/TECHNICAL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

Q1 2003     $   $   $   $     $   $   $   $
Q2 2003                                    
Q3 2003                                    
Q4 2003   36,005     1,018,244     28.28     1,018,244     28.28   7,000     119,551     17.08     119,551     17.08
   
 
 
 
 
 
 
 
 
 
Total 2003   36,005   $ 1,018,244   $ 28.28   $ 1,018,244   $ 28.28   7,000   $ 119,551   $ 17.08   $ 119,551   $ 17.08
   
 
 
 
 
 
 
 
 
 
Q1 2004   25,923   $ 901,498   $ 34.78     901,498   $ 34.78   14,338   $ 239,826   $ 16.73     239,826   $ 16.73
Q2 2004   40,483     1,309,243     32.34     1,311,547     32.40   43,101     811,781     18.83     811,781     18.83
Q3 2004   101,853     4,252,199     41.75     4,265,228     41.88   13,408     223,687     16.68     223,687     16.68
Q4 2004   34,865     1,361,812     39.06     1,392,269     39.93   10,352     225,301     21.76     231,788     22.39
   
 
 
 
 
 
 
 
 
 
Total 2004   203,124   $ 7,824,752   $ 38.52   $ 7,870,542   $ 38.75   81,199   $ 1,500,596   $ 18.48   $ 1,507,083   $ 18.56
   
 
 
 
 
 
 
 
 
 
 
  INDUSTRIAL
  RETAIL
Year of Lease
Expiration

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

  Rentable Square
Footage Subject to
Expiring Leases

  Current Annualized
Revenues Under
Expiring Leases

  Per
Square
Foot

  Annualized
Revenues Under
Expiring Leases
with future step-ups

  Per
Square
Foot

Q1 2003   $     $     $   $     $     $   $   $   $
Q2 2003                                      
Q3 2003                                      
Q4 2003                                      
   
 
 
 
 
 
 
 
 
 
Total 2003       $   $   $   $     $   $   $   $
   
 
 
 
 
 
 
 
 
 
Q1 2004       $   $   $   $     $   $   $   $
Q2 2004                       2,151     103,154     47.96     103,154     47.96
Q3 2004                                      
Q4 2004                                      
   
 
 
 
 
 
 
 
 
 
Total 2004       $   $   $   $   2,151   $ 103,154   $ 47.96   $ 103,154   $ 47.96
   
 
 
 
 
 
 
 
 
 

34



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Lease Expirations—Greater San Francisco
 
  Office
  Office/Technical
Year of Lease Expiration
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Per Square Foot
  Annualized Revenues Under Expiring Leases with future step-ups
  Per Square Foot
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Per Square Foot
  Annualized Revenues Under Expiring Leases with future step-ups
  Per Square Foot
2003   265,910   $ 9,716,308   $ 36.54   $ 9,716,308   $ 36.54   7,100   $ 120,048   $ 16.91   $ 120,048   $ 16.91
2004   573,602     24,934,804     43.47     24,973,263     43.54   17,347     286,764     16.53     288,384     16.62
2005   346,740     14,444,829     41.66     14,502,756     41.83   54,939     753,461     13.71     776,101     14.13
2006   900,797     43,848,950     48.68     45,480,307     50.49   13,000     196,632     15.13     207,132     15.93
2007   427,561     20,640,869     48.28     21,135,718     49.43   10,350     135,180     13.06     158,400     15.30
2008   279,148     11,096,605     39.75     11,112,843     39.81   3,608     52,695     14.61     50,978     14.13
2009   260,477     11,378,537     43.68     12,048,578     46.26                  
2010   189,499     11,293,163     59.59     12,997,658     68.59                  
2011   192,689     17,992,769     93.38     18,485,363     95.93                  
2012   127,771     5,464,124     42.76     5,978,786     46.79                  
Thereafter   214,823     8,355,682     38.90     9,015,540     41.97                  
 
  Industrial
  Retail
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
2003     $   $   $   $   20,363   $ 714,163   $ 35.07   $ 731,233   $ 35.91
2004   40,000     424,836     10.62     434,436     10.86   25,296     1,294,816     51.19     1,294,816     51.19
2005                     27,297     1,337,997     49.02     1,359,013     49.79
2006                     21,606     1,062,027     49.15     1,068,446     49.45
2007   20,000     241,890     12.09     260,859     13.04   18,341     1,146,998     62.54     1,234,003     67.28
2008                     43,899     1,999,873     45.56     2,062,957     46.99
2009                     31,088     1,363,155     43.85     1,431,281     46.04
2010                     30,749     1,306,176     42.48     1,520,176     49.44
2011                     3,474     192,311     55.36     234,550     67.52
2012                     35,018     2,165,851     61.85     2,458,101     70.20
Thereafter                     12,417     892,256     71.86     997,893     80.37

35



Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Quarterly Lease Expirations—Greater San Francisco
 
  Office
  Office/Technical
Year of Lease Expiration
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Per Square Foot
  Annualized Revenues Under Expiring Leases with future step-ups
  Per Square Foot
  Rentable Square Footage Subject to Expiring Leases
  Current Annualized Revenues Under Expiring Leases
  Per Square Foot
  Annualized Revenues Under Expiring Leases with future step-ups
  Per Square Foot
Q1 2003     $     $     $     $       $     $     $     $  
Q2 2003                                    
Q3 2003                                    
Q4 2003   265,910     9,716,308     36.54     9,716,308     36.54   7,100     120,048     16.91     120,048     16.91
   
 
 
 
 
 
 
 
 
 
Total 2003   265,910   $ 9,716,308   $ 36.54   $ 9,716,308   $ 36.54   7,100   $ 120,048   $ 16.91   $ 120,048   $ 16.91
   
 
 
 
 
 
 
 
 
 
Q1 2004   35,049     1,871,822   $ 53.41     1,885,947   $ 53.81     $   $       $
Q2 2004   148,543     5,458,941     36.75     5,458,941     36.75   6,800     94,440     13.89     94,440     13.89
Q3 2004   235,794     10,970,400     46.53     10,971,531     46.53   6,547     135,576     20.71     135,576     20.71
Q4 2004   154,216     6,633,641     43.02     6,656,844     43.17   4,000     56,748     14.19     58,368     14.59
   
 
 
 
 
 
 
 
 
 
Total 2004   573,602   $ 24,934,804   $ 43.47   $ 24,973,263   $ 43.54   17,347   $ 286,764   $ 16.53   $ 288,384   $ 16.62