Boston Properties Reports June Office Tenant Collections of 98% and Completes $300 Million of Asset Sales

June 29, 2020
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Provides Update on Repopulation Plans across BXP Regions

BOSTON--(BUSINESS WIRE)--Jun. 29, 2020-- Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded owner, developer and manager of Class A office properties in the United States, provided an update on recent business accomplishments including:

  • Collections: For the month of June, the Company collected more than 98% of its total rent payments from office tenants due June 1. Rent collections from all tenants, including retail, were 94% in total.
  • Dispositions: The Company announced recent asset sales including:
    • Approximately 455,000 square feet of Capital Gallery, a Class A office complex in Washington, DC was sold to the Smithsonian Institution for a gross sales price of approximately $254 million. The Smithsonian Institution, represented in the purchase by Newmark Knight Frank, has been a long time tenant in the property. Boston Properties is pleased that the Smithsonian Institution will remain an occupant for the long-term, now as an owner. Boston Properties will continue to provide property management services for the Capital Gallery property and will retain ownership of 177,000 square feet of the property, which includes 157,000 square feet of office space, 20,000 square feet of retail and a 465-space parking garage. The portion of the property retained by the Company is approximately 100% leased. The Company expects to realize net proceeds of approximately $242 million from the sale after closing costs and related expenses.
    • Annapolis Junction Building Eight, a 125,700 square foot vacant office building and two parcels of land at Annapolis Junction Business Park in Annapolis Junction, Maryland that was sold for a gross sale price of $47 million. The Company had a 50% interest in the Annapolis Junction properties. The Company expects to realize net proceeds of approximately $14 million from the sale after closing costs and the repayment of mortgage debt on the properties.
  • Repopulation: The Company has been actively working with customers on the repopulation of its properties through the communication and execution of BXP’s Health Security Plan. All BXP buildings have remained open. Repopulation commenced in June in the Boston, New York and Washington DC regions. San Francisco and Los Angeles issued protocol for office-based worksites to prepare for repopulation of non-essential workers.

“As state and local regulators are starting to reopen the economies in our core markets, we are actively assisting our customers with plans to repopulate their offices,” said Owen Thomas, CEO, Boston Properties.  “Notwithstanding the challenging economic environment, we are also encouraged by our continued strong rent collections and successful capital raising through asset sales.”

About Boston Properties

Boston Properties (NYSE: BXP) is the largest publicly-traded owner, manager and developer of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.8 million square feet and 196 properties, including 10 properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

AT THE COMPANY
Michael LaBelle
Executive Vice President & CFO
(617) 236-3352

Sara Buda
Vice President, Investor Relations
sbuda@bxp.com
(617) 236-3429

Source: Boston Properties, Inc.