Boston Properties, Inc. Announces Fourth Quarter 2005 Results
Reports diluted FFO per share of $1.09 Reports diluted EPS of $1.35
BOSTON, Jan. 30 /PRNewswire-FirstCall/ -- Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the fourth quarter ended December 31, 2005.
Results for the quarter ended December 31, 2005
Funds from Operations (FFO) for the quarter ended December 31, 2005 were $126.7 million, or $1.13 per share basic and $1.09 per share diluted. This compares to FFO for the quarter ended December 31, 2004 of $118.9 million, or $1.09 per share basic and $1.05 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 112,340,334 and 119,496,904, respectively, for the quarter ended December 31, 2005 and 109,358,601 and 117,268,572, respectively, for the quarter ended December 31, 2004.
Net income available to common shareholders was $158.3 million for the three months ended December 31, 2005, compared to $62.3 million for the quarter ended December 31, 2004. Net income available to common shareholders per share (EPS) for the quarter ended December 31, 2005 was $1.38 basic and $1.35 on a diluted basis. This compares to EPS for the fourth quarter of 2004 of $0.57 basic and $0.56 on a diluted basis. EPS includes $0.77 and $0.01, on a diluted basis, related to gains on sales of real estate and discontinued operations for the quarters ended December 31, 2005 and 2004, respectively.
Results for the year ended December 31, 2005
FFO for the year ended December 31, 2005 was $489.0 million, or $4.39 per share basic and $4.25 per share diluted, after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. This compares to FFO for the year ended December 31, 2004 of $459.5 million, or $4.32 per share basic and $4.16 per share diluted. Losses from early extinguishments of debt associated with the sales of real estate totaled $0.08 per share basic and diluted for the year ended December 31, 2005. The weighted average number of basic and diluted shares outstanding totaled 111,274,188 and 118,722,134, respectively, for the year ended December 31, 2005 and 106,458,214 and 114,815,522, respectively, for the year ended December 31, 2004.
Net income available to common shareholders was $442.5 million for the year ended December 31, 2005, compared to $284.0 million for the year ended December 31, 2004. EPS for the year ended December 31, 2005 was $3.98 basic and $3.90 on a diluted basis. This compares to EPS for the year ended December 31, 2004 of $2.67 basic and $2.61 on a diluted basis. EPS includes $1.77 and $0.36, on a diluted basis, related to gains on sales of real estate and discontinued operations for the years ended December 31, 2005 and 2004, respectively.
The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter and year ended December 31, 2005. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
As of December 31, 2005, the Company's portfolio consisted of 121 properties comprising approximately 42.0 million square feet, including three properties under construction and one expansion project totaling 1.1 million square feet. The overall percentage of leased space for the 116 properties in service as of December 31, 2005 was 93.8%.
Significant events of the fourth quarter include:
- On October 4, 2005, the Company repaid the mortgage loan collateralized
by its Embarcadero Center West Tower property located in San Francisco,
California totaling approximately $90.7 million using approximately
$72.7 million of available cash and $18.0 million drawn under the
Company's Unsecured Line of Credit. There was no prepayment penalty
associated with the repayment.
On November 4, 2005, the Company sold the Residence Inn by Marriott(R),
a 221-room extended-stay hotel property located in Cambridge,
Massachusetts, at a gross sale price of approximately $68.0 million,
less closing costs and a credit of approximately $3.0 million
representing the property-controlled furniture, fixtures and equipment
escrow funds set aside for planned property upgrades.
On November 7, 2005, the Company sold 40-46 Harvard Street, an
industrial property with approximately 152,000 net rentable square feet
located in Westwood, Massachusetts, at a sale price of approximately
$7.8 million.
On December 14, 2005, the Company sold Embarcadero Center West Tower, a
Class A office property with approximately 475,000 net rentable square
feet located in San Francisco, California, at a gross sale price of
approximately $205.8 million, less customary closing costs,
transaction-related expenses and unfunded tenant obligations totaling
approximately $10.6 million.
On December 14, 2005, the joint venture entity that is developing 505
9th Street in Washington, D.C. closed on a collateralized,
construction-to-permanent financing totaling $95.0 million. The
construction financing is comprised of a $60.0 million loan commitment,
which bears interest at a fixed rate of 5.73% per annum, and a $35.0
million loan commitment, which bears interest at a variable rate equal
to LIBOR plus 1.25% per annum. The construction financing converts to
a ten-year fixed rate loan in October 2007, subject to the satisfaction
of certain operating performance and financial measures, at an interest
rate of 5.73% per annum with a provision for an increase in the
borrowing capacity by $35.0 million (which would bring the total
available financing to $130.0 million).
On December 20, 2005, the Company's Value-Added Fund acquired 300
Billerica Road, a 111,000 net rentable square foot office property,
located in Chelmsford, Massachusetts, at a purchase price of
approximately $10.0 million. The acquisition was financed with new
mortgage indebtedness totaling $7.5 million and approximately $2.5
million in cash, of which the Company's share was approximately $0.6
million. The mortgage financing bears interest at a fixed rate of
5.69% per annum and matures on January 1, 2016.
On December 30, 2005, the Company acquired Prospect Place, a Class A
office property with approximately 297,000 net rentable square feet
located in Waltham, Massachusetts, at a purchase price of approximately
$62.8 million. The acquisition was financed with available cash.
Prospect Place is currently 67% leased with an average rental rate that
is below market. The Company projects this property's 2006 Unleveraged
FFO Return to be 4.7% and 2006 Unleveraged Cash Return to be 3.4%.
Assuming the Company leases substantially all of the currently
available space at market rates by 2008 and spends approximately $8.8
million for improvements and leasing commissions, the Company projects
stabilized Unleveraged FFO Return to be 8.7% and stabilized Unleveraged
Cash Return to be 7.9%. The calculation of these returns and related
disclosures are presented on the accompanying table entitled "Projected
2006 & Stabilized Returns on Acquisition." There can be no assurance
that actual returns will not differ materially from these projections.
On December 30, 2005, the Company repaid at maturity the mortgage loan
collateralized by its 601 & 651 Gateway Boulevard properties located in
South San Francisco, California, totaling approximately $85.7 million.
During the fourth quarter 2005, the Company continued its planned
interest rate hedging program. As of December 31, 2005, the Company
had entered into forward-starting interest rate swap contracts which
fix the ten-year treasury rate for financings in early 2007 at a
weighted-average rate of 4.34% per annum on notional amounts
aggregating $500.0 million, which go into effect in February 2007 and
expire in February 2017. The Company entered into the interest rate
swap contracts designated and qualifying as cash flow hedges to reduce
its exposure to the variability in future cash flows attributable to
changes in the Treasury rate in contemplation of obtaining ten-year
fixed-rate financing in early 2007.
- During January 2006, the Company placed-in-service its Seven Cambridge
Center development project located in Cambridge, Massachusetts. Seven
Cambridge Center is a fully-leased, build-to-suit project with
approximately 231,000 square feet of office, research laboratory and
retail space. The Company has leased 100% of the space to the
Massachusetts Institute of Technology for occupancy by its affiliate,
the Eli and Edythe L. Broad Institute. On October 1, 2005, the Company
had placed-in-service the West Garage phase of the project consisting
of parking for approximately 800 cars.
The Company's guidance for the first quarter and full year 2006 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below.
First Quarter 2006 Full Year 2006
Low - High Low - High
Projected EPS (diluted) $0.52 - $0.55 $2.19 - $2.35
Add:
Projected Company
Share of Real
Estate Depreciation
and Amortization 0.49 - 0.49 1.95 - 1.95
Less:
Projected Company
Share of Gains on
Sales of Real Estate 0.02 - 0.03 0.02 - 0.03
Projected FFO per Share
(diluted) $0.99 - $1.01 $4.12 - $4.27
The foregoing estimates reflect management's view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and earnings impact of the events referenced in this release. The estimates do not include possible future gains or losses from property dispositions or the impact on operating results from possible future property acquisitions or dispositions. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses associated with disposition activities. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth above.
Boston Properties will host a conference call tomorrow, January 31, 2006 at 10:00 AM (Eastern Time), open to the general public, to discuss the fourth quarter and full fiscal year 2005 results, the 2006 projections and other related matters. The number to call for this interactive teleconference is (800) 218-8862. A replay of the conference call will be available through February 7, 2006 by dialing (800) 405-2236 and entering the passcode 11049648, or as a podcast on the Company's web site, http://www.bostonproperties.com, shortly after the call. An audio web cast will also be archived and may be accessed in the Investor Relations section of the Company's website under the heading Events & Webcasts.
Additionally, a copy of Boston Properties' fourth quarter 2005 "Supplemental Operating and Financial Data" and this press release are available in the Investor Relations section of the Company's website at http://www.bostonproperties.com. These materials are also available by contacting Investor Relations at (617) 236-3322 or by written request to:
Investor Relations
Boston Properties, Inc.
111 Huntington Avenue, Suite 300
Boston, MA 02199-7610
Boston Properties is a fully integrated, self-administered and self- managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office properties and also includes two hotels. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets - Boston, Midtown Manhattan, Washington, D.C., San Francisco and Princeton, N.J.
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words "guidance," "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 (including the impact of interest rates on our hedging program), the effects of local economic and market conditions, the effects of acquisitions and dispositions, including possible impairment charges, the impact of newly adopted accounting principles on the Company's accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward- looking statement whether as a result of new information, future events or otherwise, including its guidance for the first quarter and full fiscal year 2006.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
(in thousands, except for per share amounts)
(unaudited)
Revenue
Rental:
Base rent $279,583 $276,209 $1,110,212 $1,067,100
Recoveries from tenants 44,098 41,552 173,254 164,770
Parking and other 14,051 14,353 55,567 57,270
Total rental revenue 337,732 332,114 1,339,033 1,289,140
Hotel revenue 22,161 21,050 69,277 66,427
Development and management
services 3,714 5,324 17,310 20,440
Interest and other 2,726 828 12,015 10,339
Total revenue 366,333 359,316 1,437,635 1,386,346
Expenses
Operating:
Rental 112,284 106,614 438,335 416,327
Hotel 16,125 14,999 51,689 49,442
General and administrative 13,136 15,541 55,471 53,636
Interest 74,804 79,378 308,091 306,170
Depreciation and amortization 66,290 68,342 266,829 249,649
Losses from early
extinguishments of debt - - 12,896 6,258
Total expenses 282,639 284,874 1,133,311 1,081,482
Income before minority
interests in property
partnerships, income from
unconsolidated joint
ventures, minority interest
in Operating Partnership,
gains on sales of real estate
and land held for development
and discontinued operations 83,694 74,442 304,324 304,864
Minority interests in
property partnerships 1,366 1,558 6,017 4,685
Income from unconsolidated
joint ventures 1,530 664 4,829 3,380
Income before minority
interest in Operating
Partnership, gains on sales
of real estate and land held
for development and
discontinued operations 86,590 76,664 315,170 312,929
Minority interest in
Operating Partnership (16,928) (15,920) (74,103) (67,743)
Income before gains on sales
of real estate and land held
for development and
discontinued operations 69,662 60,744 241,067 245,186
Gains on sales of real
estate, net of minority
interest 48,542 - 150,674 8,149
Gains on sales of land held
for development, net of
minority interest - - 1,210 -
Income before discontinued
operations 118,204 60,744 392,951 253,335
Discontinued operations:
Income from discontinued
operations, net of minority
interest 730 423 1,908 3,344
Gains on sales of real
estate from discontinued
operations, net of minority
interest 39,364 1,087 47,656 27,338
Net income available to
common shareholders $158,298 $62,254 $442,515 $284,017
Basic earnings per common
share:
Income available to common
shareholders before
discontinued operations $1.02 $0.56 $3.53 $2.38
Discontinued operations, net
of minority interest 0.36 0.01 0.45 0.29
Net income available to
common shareholders $1.38 $0.57 $3.98 $2.67
Weighted average number of
common shares outstanding 112,340 109,359 111,274 106,458
Diluted earnings per common
share:
Income available to common
shareholders before
discontinued operations $1.00 $0.55 $3.46 $2.33
Discontinued operations, net
of minority interest 0.35 0.01 0.44 0.28
Net income available to
common shareholders $1.35 $0.56 $3.90 $2.61
Weighted average number of
common and common
equivalent shares
outstanding 114,640 111,888 113,559 108,762
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2005 2004
(in thousands, except for share amounts)
(unaudited)
ASSETS
Real estate $8,721,903 $9,033,858
Construction in progress 177,576 35,063
Land held for future development 248,645 222,306
Less: accumulated depreciation (1,264,073) (1,143,369)
Total real estate 7,884,051 8,147,858
Cash and cash equivalents 261,496 239,344
Cash held in escrows 25,618 24,755
Investments in marketable securities - -
Tenant and other receivables, net of
allowance for doubtful accounts of
$2,519 and $2,879, respectively 52,668 25,500
Accrued rental income, net of
allowance of $2,638 and $4,252,
respectively 302,356 251,236
Deferred charges, net 242,660 254,950
Prepaid expenses and other assets 41,261 38,630
Investments in unconsolidated joint ventures 90,207 80,955
Total assets $8,900,317 $9,063,228
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $3,297,192 $3,541,131
Unsecured senior notes, net of
discount 1,471,062 1,470,683
Unsecured line of credit 58,000 -
Accounts payable and accrued expenses 102,729 94,451
Dividends and distributions payable 107,643 91,428
Interest rate contract - 1,164
Accrued interest payable 47,911 50,670
Other liabilities 154,123 91,300
Total liabilities 5,238,660 5,340,827
Commitments and contingencies - -
Minority interests 740,085 786,328
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,
112,621,162 and 110,399,385
shares issued and 112,542,262
and 110,320,485 shares outstanding in
2005 and 2004, respectively 1,125 1,103
Additional paid-in capital 2,750,723 2,633,980
Earnings in excess of dividends 186,328 325,452
Treasury common stock, at cost (2,722) (2,722)
Unearned compensation (5,001) (6,103)
Accumulated other comprehensive loss (8,881) (15,637)
Total stockholders' equity 2,921,572 2,936,073
Total liabilities and
stockholders' equity $8,900,317 $9,063,228
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
Three months ended Year ended
December 31, December 31,
2005 2004 2005 2004
(in thousands, except for per share amounts)
(unaudited)
Net income available to common
shareholders $158,298 $62,254 $442,515 $284,017
Add:
Minority interest in
Operating Partnership 16,928 15,920 74,103 67,743
Less:
Minority interests in
property partnerships 1,366 1,558 6,017 4,685
Income from unconsolidated
joint ventures 1,530 664 4,829 3,380
Gains on sales of real
estate, net of minority
interest 48,542 - 150,674 8,149
Gains on sales of land held
for development, net of
minority interest - - 1,210 -
Income (loss) from
discontinued operations, net
of minority interest 730 423 1,908 3,344
Gains on sales of real estate
from discontinued
operations, net of minority
interest 39,364 1,087 47,656 27,338
Income before minority
interests in property
partnerships, income from
unconsolidated joint
ventures, minority interest
in Operating Partnership,
gains on sales of real estate
and land held for development
and discontinued operations 83,694 74,442 304,324 304,864
Add:
Real estate depreciation and
amortization (2) 67,987 69,989 274,476 257,319
Income (loss) from
discontinued operations 869 548 2,279 4,238
Income from unconsolidated
joint ventures 1,530 664 4,829 3,380
Less:
Minority interests in
property partnerships' share
of funds from operations (114) 123 (113) (922)
Preferred distributions (3,098) (3,361) (12,918)(3) (15,050)
Funds from operations (FFO) 150,868 142,405 572,877 553,829
Add:
Losses from early
extinguishments of debt
associated with the sales of
real estate - - 11,041 -
Funds from operations after a
supplemental adjustment to
exclude losses from early
extinguishments of debt
associated with the sales of
real estate 150,868 142,405 583,918 553,829
Less:
Minority interest in the
Operating Partnership's
share of funds from
operations after a supplemental
adjustment to exclude
losses from early
extinguishments of debt
associated with the sales
of real estate 24,167 23,514 94,946 94,332
Funds from operations available
to common shareholders after a
supplemental adjustment to
exclude losses from early
extinguishments of debt
associated with the sales
of real estate $126,701 $118,891 $488,972 $459,497
Our percentage share of funds
from operations - basic 83.98% 83.49% 83.74% 82.97%
Weighted average shares
outstanding - basic 112,340 109,359 111,274 106,458
FFO per share basic after a
supplemental adjustment to
exclude losses from
early extinguishments of
debt associated with the
sales of real estate $1.13 $1.09 $4.39 $4.32
FFO per share basic $1.13 $1.09 $4.31 $4.32
Weighted average shares
outstanding - diluted 119,497 117,269 118,722 114,816
FFO per share diluted after a
supplemental adjustment to
exclude losses from
early extinguishments of
debt associated with the
sales of real estate $1.09 $1.05 $4.25 $4.16
FFO per share diluted $1.09 $1.05 $4.17 $4.16
(1) Pursuant to the revised definition of Funds from Operations adopted by
the Board of Governors of the National Association of Real Estate
Investment Trusts ("NAREIT"), we calculate Funds from Operations, or
"FFO," by adjusting net income (loss) (computed in accordance with
GAAP, including non-recurring items) for gains (or losses) from sales
of properties, real estate related depreciation and amortization, and
after adjustment for unconsolidated partnerships and joint ventures.
FFO is a non-GAAP financial measure. The use of FFO, combined with
the required primary GAAP presentations, has been fundamentally
beneficial in improving the understanding of operating results of
REITs among the investing public and making comparisons of REIT
operating results more meaningful. Management generally considers FFO
to be a useful measure for reviewing our comparative operating and
financial performance because, by excluding gains and losses related
to sales of previously depreciated operating real estate assets and
performance of a company's real estate between periods or as compared
to different companies. Our computation of FFO may not be comparable
to FFO reported by other REITs or real estate companies that do not
define the term in accordance with the current NAREIT definition or
that interpret the current NAREIT definition differently.
In addition to presenting FFO in accordance with the NAREIT
definition, we also disclose FFO after a specific and defined
supplemental adjustment to exclude losses from early extinguishments
of debt associated with the sales of real estate. The adjustment to
exclude losses from early extinguishments of debt results when the
sale of real estate encumbered by debt requires us to pay the
extinguishment costs prior to the debt's stated maturity and to write-
off unamortized loan costs at the date of the extinguishment. Such
costs are excluded from the gains on sales of real estate reported in
accordance with GAAP. However, we view the losses from early
extinguishments of debt associated with the sales of real estate as an
incremental cost of the sale transactions because we extinguished the
debt in connection with the consummation of the sale transactions and
we had no intent to extinguish the debt absent such transactions. We
believe that this supplemental adjustment more appropriately reflects
the results of our operations exclusive of the impact of our sale
transactions.
Although our FFO as adjusted clearly differs from NAREIT's definition
of FFO, and may not be comparable to that of other REITs and real
estate companies, we believe it provides a meaningful supplemental
measure of our operating performance because we believe that, by
excluding the effects of the losses from early extinguishments of debt
associated with the sales of real estate, management and investors are
presented with an indicator of our operating performance that more
closely achieves the objectives of the real estate industry in
presenting FFO.
Neither FFO nor FFO as adjusted should be considered as an alternative
to net income (determined in accordance with GAAP) as an indication of
our performance. Neither FFO nor FFO as adjusted represent cash
generated from operating activities determined in accordance with GAAP
and is not a measure of liquidity or an indicator of our ability to
make cash distributions. We believe that to further understand our
performance, FFO and FFO as adjusted should be compared with our
reported net income and considered in addition to cash flows in
accordance with GAAP, as presented in our consolidated financial
statements.
(2) Real estate depreciation and amortization consists of depreciation and
amortization from the Consolidated Statements of Operations of
$66,290, $68,342, $266,829 and $249,649, our share of unconsolidated
joint venture real estate depreciation and amortization of $2,174,
$1,798, $8,554 and $6,814 and depreciation and amortization from
discontinued operations of $63, $393, $812 and $3,292, less corporate
related depreciation and amortization of $540, $544, $1,719 and $2,436
for the three months and year ended December 31, 2005 and 2004,
respectively.
(3) Excludes approximately $12.1 million of income allocated to the
holders of Series Two Preferred Units to account for their right to
participate on an as-converted basis in the special dividend that
followed previously completed sales of real estate.
BOSTON PROPERTIES, INC.
PROJECTED 2006 AND STABILIZED RETURNS ON ACQUISITION
Prospect Place
2006 Stabilized
(dollars in thousands)
Base rent and recoveries from tenants $5,869 $9,881
Straight-line rent 231 (57)
Fair value lease revenue 613 627
Total rental revenue 6,713 10,451
Operating Expenses 3,746 4,234
Revenue less Operating Expenses 2,967 6,217
Depreciation and amortization (3,051) (2,887)
Net income $(84) $3,330
Add:
Depreciation and amortization 3,051 2,887
Unleveraged FFO $2,967 $6,217
Less:
Straight-line rent (231) 57
Fair value lease revenue (613) (627)
Unleveraged Cash $2,123 $5,647
Cash $62,554 $62,554
Closing costs 214 214
Tenant and capital improvements - 8,835
Total Investment $62,768 $71,603
Total Investment Per Square Foot of
Net Rentable Building Area $212 $242
Unleveraged FFO Return (1) 4.7% 8.7%
Unleveraged Cash Return (2) 3.4% 7.9%
(1) Unleveraged FFO Return is determined by dividing the Unleveraged FFO
(based on the projected results for either the year ending December
31, 2006 or stabilized results) by Total Investment. Other real
estate companies may calculate this return differently. Management
believes projected Unleveraged FFO Return is a useful measure in the
real estate industry when determining the appropriate purchase price
for a property or estimating a property's value. When evaluating
acquisition opportunities, management considers, among other factors,
projected Unleveraged FFO Return because it excludes, among other
items, interest expense (which may vary depending on the level of
corporate debt or property-specific debt), as well as depreciation
and amortization expense (which can vary among owners of identical
assets in similar condition based on historical cost accounting and
useful life estimates). In addition, management considers its cost
of capital and available financing alternatives in making decisions
concerning acquisitions.
(2) Unleveraged Cash Return is determined by dividing the Unleveraged
Cash (based on the projected results for either the year ending
December 31, 2006 or stabilized results) by Total Investment. Other
real estate companies may calculate this return differently.
Management believes that projected Unleveraged Cash Return is also a
useful measure of a property's value when used in addition to
Unleveraged FFO Return because, by eliminating the effect of
straight-lining of rent and the SFAS No. 141 treatment of in-place
above- and below-market leases, it enables an investor to assess the
cash on cash return from the property over the forecasted period.
Management is presenting these projected returns and related
calculations to assist investors in analyzing the Company's recent
acquisition. Management does not intend to present this data for any
other purpose, for any other period or for its other properties, and
is not intending for these measures to otherwise provide information
to investors about the Company's financial condition or results of
operations. The Company does not undertake a duty to update any of
these projections.
BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES
% Leased by Location
December 31, 2005 December 31, 2004
Greater Boston 89.9% 90.2%
Greater Washington, D.C. 97.2% 97.9%
Midtown Manhattan 98.3% 96.4%
Baltimore, MD N/A 90.9%
Richmond, VA N/A 91.3%
Princeton/East Brunswick, NJ 86.9% 90.2%
Greater San Francisco 90.8% 80.3%
Total Portfolio 93.8% 92.1%
% Leased by Type
December 31, 2005 December 31, 2004
Class A Office Portfolio 93.7% 92.3%
Office/Technical Portfolio 97.6% 97.6%
Industrial Portfolio N/A 0.0%
Total Portfolio 93.8% 92.1%
CONTACT:
Michael Walsh
Senior Vice President of Finance
+1-617-236-3410
Kathleen DiChiara
Investor Relations Manager
+1-617-236-3343
Both of Boston Properties, Inc.
Marilynn Meek
General Info.
Financial Relations Board for Boston Properties,
Inc.
+1-212-827-3773