SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): APRIL 27, 1999 BOSTON PROPERTIES, INC. (Exact name of Registrant as specified in its charter) DELAWARE 1-13087 04-2473675 (State or other jurisdiction (Commission File (I.R.S. employer of incorporation) Number) Identification No.) 8 ARLINGTON STREET BOSTON, MASSACHUSETTS 02116 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (617) 859-2600
ITEM 5. OTHER EVENTS Following the issuance of a press release on April 27, 1999, announcing the Company's results for the first quarter ended March 31, 1999, the Company intends to provide, to certain investors and analysts at their request, supplemental information regarding the Company's operations that is to voluminous for a press release. The Company is attaching this supplementary operating and financial data as Exhibit 99.1 and the press release as Exhibit 99.2 to this Current Report on Form 8-K. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits EXHIBIT NO. 99.1 The Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 1999. 99.2 The Boston Properties, Inc. press release dated April 27, 1999 for the quarter ended March 31, 1999.
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: April 28, 1999 BOSTON PROPERTIES, INC. /s/David G. Gaw ---------------------------------- By: David G. Gaw Chief Financial Officer
EX-99.1 ================================================================================ BOSTON PROPERTIES, INC. Supplementa1 Operating and Financial Data for the Quarter Ended March 31, 1999 ================================================================================
BOSTON PROPERTIES, INC. First Quarter 1999 ================================================================================ INDEX Page ---- Company Background 2 Investor Information 3-4 Financial Highlights 5 Consolidated Balance Sheets 6 Consolidated Income Statements 7 Funds From Operations 8 Financial Ratios 9 Capital Structure 10 Debt Analysis 11 Portfolio Overview 12-13 Occupancy Analysis - same property 14 Page ---- Office Properties 15 R&D Properties 16 Industrial Properties 17 Grand Total - Office, R&D and Industrial Properties 18 Hotel Performance 19 Same Property Performance 20-21 Capital Expenditures 22 Value Creation Pipeline - Acquisitions/Repositioning 23 Value Creation Pipeline - Development 24 Value Creation Pipeline - Land Parcels 25 Acquisition Property Profiles 26-27 ================================================================================ 1
BOSTON PROPERTIES, INC. First Quarter 1999 COMPANY BACKGROUND Boston Properties Inc., is a self-administered and self-managed real estate investment trust that develops, acquires, owns, and manages a diverse portfolio of office, industrial, and hotel properties predominantly located in greater Boston, greater Washington, DC, midtown Manhattan, greater San Francisco, Baltimore, Maryland, Richmond, Virginia, and Princeton/East Brunswick, New Jersey. The Company is one of the largest owners and developers of office properties in the United States. On June 23, 1997, Boston Properties successfully completed its initial public offering. The offering and the underwriters over-allotment option closed on the same date resulting in 36,110,000 shares being sold at $25.00 per share for a total offering of $902,750,000. On January 30,1998, the Company closed a follow-on offering of 23,000,000 shares (including the underwriters' over-allotment) at $35.125 per share for a total offering of $807,875,000. Through its predecessor company founded by Mortimer B. Zuckerman and Edward H. Linde in 1970, the Company grew through the seventies, eighties, and nineties by developing and redeveloping Class A office properties, R&D and industrial properties, and hotels in its primary markets of greater Boston, greater Washington, DC, and midtown Manhattan. Since the Company's Initial Offering in June 1997, the Company has acquired 40 properties adding approximately 14.6 million square feet to its portfolio, representing an investment of approximately $3.6 billion. In addition, the Company is developing eight Class A Office Buildings for a total anticipated investment of approximately $210.6 million. The Company owns or controls land where it can develop an additional 11.3 million square feet. Boston Properties is a full-service real estate company with substantial in-house expertise and resources in acquisitions, development, financing, construction management, property management, marketing, leasing, accounting, and legal services. 2
BOSTON PROPERTIES, INC. First Quarter 1999 INVESTOR INFORMATION 8 Arlington Street Boston, MA 02116 (617) 859-2600 (617) 536-5087 (fax) Mortimer B. Zuckerman Chairman of the Board Edward H. Linde President, Chief Executive Officer and Director Robert E. Burke Executive Vice President, Operations Douglas T. Linde Senior Vice President, Financial and Capital Markets David G. Gaw Senior Vice President, Chief Financial Officer TIMING Quarterly results will be announced according to the following anticipated schedule: Second Quarter Early August Third Quarter Early November Year End Early February 3
BOSTON PROPERTIES, INC. First Quarter 1999 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: ======================================================================================================================= 1st Quarter 1999 1st Quarter 1998 ---------------- ---------------- High Price $ 34.6875 $ 35.8750 Low Price $ 30.3125 $ 32.5000 Closing Price $ 31.6250 $ 35.1875 Dividends per share - annualized $ 1.70 $ 1.62 Closing dividend yield - annualized 5.38% 4.60% Closing shares, common units and preferred units (if converted) outstanding (thousands) 100,290 80,123 Closing market value of shares and units outstanding (thousands) $ 3,171,671 $ 2,819,328 ======================================================================================================================= 4
BOSTON PROPERTIES, INC. First Quarter 1999 FINANCIAL HIGHLIGHTS (unaudited and in thousands) ======================================================================================================= Three Months Ended ------------------------------------------------- Income Items: March 31, 1999 March 31, 1998 % Change - ------------- -------------- -------------- -------- Revenues $ 187,640 $ 95,603 96.27% Net Income available to common shareholders $ 24,934 $ 19,631 27.01% Funds from Operations $ 62,814 $ 39,028 60.95% Company's share (72.75% and 75.20%) $ 45,697 $ 29,349 55.70% Funds from Operations per share - basic $ 0.72 $ 0.54 33.20% Funds from Operations per share - diluted $ 0.70 $ 0.53 32.08% Dividends per share $ 0.425 $ 0.405 4.94% Ratios: - ------- Interest Coverage Ratio 2.47 2.60 -4.94% Dividend Payout Ratio 60.71% 76.42% -20.55% ======================================================================================================= ======================================================================================================= Capitalization: March 31, 1999 December 31, 1998 % Change - -------------- -------------- ----------------- -------- Total Debt $ 3,010,755 $ 3,088,724 -2.52% Total Common Shares Outstanding @ Quarter End 63,540 63,528 0.02% Total Preferred Shares Outstanding @ Quarter End (if converted) 2,625 -- -- Total Common Units Outstanding @ Quarter End 23,800 23,798 0.0l% Total Preferred Units Outstanding @ Quarter End (if converted) 10,325 10,454 -- Price @ Quarter End 31 5/8 30 1/2 3.69% Equity Value @ Quarter End $ 3,171,672 $ 2,982,294 6.35% Total Market Capitalization $ 6,182,427 $ 6,071,018 1.84% Debt/Total Market Capitalization 48.70% 50.88% -4.28% ======================================================================================================= 5
BOSTON PROPERTIES, INC. First Quarter 1999 CONSOLIDATED BALANCE SHEETS (unaudited and in thousands) ===================================================================================================================== March 31, 1999 December 31, 1998 -------------- ----------------- ASSETS Real Estate and equipment $ 4,808,576 $ 4,725,757 Land and development in progress 210,373 191,436 Less accumulated depreciation (383,779) (357,384) ----------- ----------- Total real estate and equipment 4,635,170 4,559,809 Cash 33,597 12,166 Escrows 23,365 19,014 Notes receivable -- 420,143 Tenant and other receivables 42,188 40,830 Accrued rental income 68,615 64,251 Deferred charges, net 47,893 46,029 Prepaid expenses and other assets 25,166 26,058 Investment in joint ventures 59,664 46,787 ----------- ----------- Total assets $ 4,935,658 $ 5,235,087 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 2,758,755 $ 2,653,581 Notes payable -- 420,143 Unsecured line of credit 252,000 15,000 Accounts payable and accrued expenses 51,282 33,638 Dividends payable 43,342 40,494 Accrued interest payable 12,028 7,307 Other liabilities 22,688 37,209 ----------- ----------- Total liabilities 3,140,095 3,207,372 ----------- ----------- Commitments and contingencies -- -- Minority interests 768,119 1,079,234 Preferred stock, $.01 par value, 50,000,000 shares authorized, 2,000,000 issued and outstanding 100,000 -- 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, 2,000,000 issued and outstanding Common stock, $.01 par value, 250,000,000 shares authorized, 63,540,106 and 63,527,819 issued and outstanding, respectively 635 635 Additional paid-in capital 936,745 955,711 Dividend in excess of earnings (9,936) (7,865) ----------- ----------- Total stockholders' equity 927,444 948,481 ----------- ----------- Total liabilities and stockholders' equity $ 4,935,658 $ 5,235,087 =========== =========== ===================================================================================================================== 6
BOSTON PROPERTIES, INC. First Quarter 1999 CONSOLIDATED INCOME STATEMENTS (unaudited and in thousands) ============================================================================================== Three Months Ended ----------------------------------- 31-Mar-99 31-Mar-98 % Change --------- --------- --------- Revenue: Rental income $ 179,947 $ 89,938 100.08% Development and management services 4,047 1,776 127.87% Interest and other 3,646 3,889 -6.25% --------- --------- --------- Total revenue 187,640 95,603 96.27% Operating Expenses: Rental expenses 57,350 26,530 116.17% General and administrative 6,610 4,821 37.11% Interest 50,459 24,929 102.41% Depreciation and amortization 27,794 13,095 112.25% --------- --------- --------- Total expenses 142,213 69,375 104.99% --------- --------- --------- Income before minority interests and before income from unconsolidated joint venture 45,427 26,228 73.20% Minority interest in property partnerships (4,155) (123) 3278.05% Income from unconsolidated joint venture 213 -- -- --------- --------- --------- Income before minority interest in Operating Partnership 41,485 26,105 58.92% Minority interest in Operating Partnership (15,712) (6,474) 142.69% --------- --------- --------- Net income 25,773 19,631 31.29% Preferred dividend (839) -- -- --------- --------- --------- Net income available to common shareholders $ 24,934 $ 19,631 27.01% ========= ========= ========= INCOME PER SHARE OF COMMON STOCK Net income $ 0.39 $ 0.32 22.65% ========= ========= ========= ============================================================================================== 7
BOSTON PROPERTIES, INC. First Quarter 1999 FUNDS FROM OPERATIONS (in thousands, except for per share amounts) (unaudited) ====================================================================================================== Three Months Ended --------------------------------- Actual Actual 31-Mar-99 31-Mar-98 % Change --------- --------- -------- Income from operations before minority interests and before income from unconsolidated joint ventures $ 45,427 $ 26,228 73.20% Add: Real estate depreciation and amortization 27,549 12,944 112.83% Income from unconsolidated joint venture 213 -- Less: Minority property partnerships share of funds from operations (3,163) (144) 2096.53% Preferred allocation (7,212) -- -- -------- -------- ------- Funds from Operations $ 62,814 $ 39,028 60.95% ======== ======== ======= Funds from Operations available to common shareholders (1) $ 45,697 $ 29,349 55.70% ======== ======== ======= Funds from Operations per share - basic $ 0.72 $ 0.54 33.20% ======== ======== ======= Weighted average shares outstanding - basic 63,534 54,283 17.04% ======== ======== ======= Funds from Operations per share - diluted $ 0.70 $ 0.53 32.58% ======== ======== ======= Weighted average shares outstanding - diluted 75,862 54,902 38.18% ======== ======== ======= (1) Based on weighted average shares for the quarter. Company's share for the quarter ended 3/31/99 was 72.75% and 75.20% for the quarter ended 3/31/98. ====================================================================================================== RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS ============================================================================================================================== For the Three Months Ended March 31, 1999 For the Three Months Ended March 31, 1998 ----------------------------------------- ----------------------------------------- Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount ----------- ------------- ------ ----------- ------------- ------ Basic Funds from Operations available to common shareholders $45,697 63,534 $ 0.72 $29,349 54,283 $ 0.54 Minority interest adjustment 2,118 -- -- -- -- -- Effect of Dilutive Securities Convertile Preferred Units 4,852 10,325 (0.01) -- -- -- Convertible Preferred Stock 639 1,458 -- -- -- -- Stock Options -- 545 (0.01) -- 619 (0.01) ------- ------- ------- ------- ------- ------- Dilutive Funds from Operations (1) $53,306 75,862 $ 0.70 $29,349 54,902 $ 0.53 ======= ======= ======= ======= ======= ======= (1) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended 3/31/99 was 76.12% and 75.20% for the quarter ended 3/31/98. ============================================================================================================================== 8
BOSTON PROPERTIES, INC. First Quarter 1999 FINANCIAL RATIOS ======================================================================================================== Three months ended March 31, 1999 -------------- RATIOS COMPUTED FOR INDUSTRY COMPARISONS: OPERATIONAL RATIOS (1,2) Debt Service Coverage Ratio 2.24 (EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal) Interest Coverage Ratio 2.47 (EBITDA + Income from Unconsolidated Joint Venture)/Interest Return on Shareholder's Equity 17.18% (EBITDA - Interest)/Average Equity (book value) (%) Return on Real Estate Investments 10.67% (EBITDA/Average Real Estate Investments (book value)) (%) FF0 Payout Ratio 60.71% (Dividends Declared/FFO) (%) (1) EBITDA is equal to earnings before interest, taxes, depreciation and amortization. (2) FF0 is calculated based on the NAREIT White Paper. ======================================================================================================== 9
BOSTON PROPERTIES, INC. First Quarter 1999 CAPITAL STRUCTURE Debt (in thousands) ================================================================================ Aggregate Principal March 31, 1999 Mortgage Loans $ 2,758,755 Unsecured Line of Credit 252,000 ----------- Total Debt $ 3,010,755 =========== ================================================================================ Equity (in thousands) ================================================================================================= Common Shares & Units Stock $ Value Outstanding Equivalents Equivalent (1) Common Stock 63,540 63,540 $ 2,009,453 Preferred Stock 2,000 2,625 83,016 Operating Partnership Units 23,800 23,800 752,675 Preferred Operating Partnership Units 8,155 10,325 326,528 ------- ----------- Total Equity 100,290 $ 3,171,672 ======= =========== Total Market Capitalization $ 6,182,427 =========== ================================================================================================= (1) Value based on March 31, 1999 closing price of $31 5/8. 10
BOSTON PROPERTIES, INC. First Quarter 1999 DEBT ANALYSIS Long-Term Debt Maturities and Principal Payments (in thousands) ================================================================================ Year 1999 2000 2001 2002 2003 Thereafter Total - ---- ---- ---- ---- ---- ---- ---------- ----- Amount 28,748 487,619 148,908 388,440 210,117 1,746,923 $3,010,755 ================================================================================ Unsecured Line of Credit - Due June 23, 2000 (in thousands) ================================================================================ Outstanding Outstanding Letters Remaining Facility at 3/31/99 of Credit Capacity -------- ---------- --------- -------- $500,000 252,000 22,500 $225,500 ================================================================================ Unsecured and Secured Debt Analysis ================================================================================ Weighted Weighted Average % of Debt Average Rate Maturity --------- ------------ -------- Unsecured Debt 8.37% 6.63% 1.2 years Secured Debt 91.63% 7.00% 5.9 years ------ ---- --------- Total Debt 100.00% 6.97% 5.5 years ====== ==== ========= ================================================================================ Floating and Fixed Rate Debt Analysis ================================================================================ Weighted Weighted Average % of Debt Average Rate Maturity --------- ------------ -------- Floating Rate Debt 8.60% 6.60% 0.2 years Fixed Rate Debt 91.40% 7.01% 6.6 years ------ ---- --------- Total Debt 100.00% 6.97% 5.5 years ====== ==== ========= ================================================================================ 11
BOSTON PROPERTIES, INC. First Quarter 1999 PORTFOLIO OVERVIEW Rentable Square Feet of In-Service Properties by Location and Type of Property ========================================================================================================================= Geographic Area Office (1) R&D Industrial Total % of Total --------------- --------- --- ---------- ----- ---------- Greater Boston 4,998,864 545,206 247,318 5,791,388 24.85% Greater Washington, D.C. 4,987,466 (2) 1,383,442 236,743 6,607,651 28.36% Greater San Francisco 4,009,536 144,479 281,000 4,435,015 19.03% Midtown Manhattan 2,874,854 -- -- 2,874,854 12.34% Princeton/East Brunswick, NJ 1,366,360 -- -- 1,366,360 5.86% Baltimore, MD 1,166,797 -- -- 1,166,797 5.01% Richmond, VA 899,720 -- -- 899,720 3.86% Bucks County, PA -- -- 161,000 161,000 0.69% ---------- --------- ------- ---------- ------ Total 20,303,597 2,073,127 926,061 23,302,785 100.00% ========== ========= ======= ========== ====== % of Total 87.13% 8.90% 3.97% 100.00% (1) Includes retail square footage of approximately 1,000,000. (2) Includes 444,286 square feet at One and Two Reston Overlook which are 25% owned by Boston Properties. ========================================================================================================================= Hotel Properties ================================================================================ Number of Square Hotel Properties Rooms 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 ===== ======= ================================================================================ Garage Property and Structured Parking ================================================================================ Number of Square Spaces Feet ------ ---- Garage Properties Cambridge Center North Garage 1,170 332,442 Structured Parking 16,572 5,869,641 ------ --------- Total Garage Property and Structured Parking 17,742 6,202,083 ====== ========= ================================================================================ 12
BOSTON PROPERTIES, INC. First Quarter 1999 PORTFOLIO OVERVIEW Percentage of Property Funds from Operations* for In-Service Properties by Location and Type of Property for Quarter Ended March 31, 1999 =========================================================================================================== Geographic Area Office (1) R&D Industrial Hotel Garage Total --------------- ---------- --- ---------- ----- ------ ----- Greater Boston 17.9% 1.1% 0.2% 3.1% 0.3% 22.6% Greater Washington. D.C. 22.4% 2.9% 0.2% n/a n/a 25.4% Greater San Francisco 20.1% 0.3% 0.1% n/a n/a 20.4% Midtown Manhattan 18.6% n/a n/a n/a n/a 18.6% Baltimore, MD 4.2% n/a n/a n/a n/a 4.2% Richmond, VA 3.0% n/a n/a n/a n/a 3.0% Princeton/East Brunswick, NJ 5.6% n/a n/a n/a n/a 5.6% Bucks County, PA n/a n/a 0.1% n/a n/a 0.1% ---- --- --- --- --- ----- Total 91.9% 4.2% 0.5% 3.1% 0.3% 100.0% ==== === === === === ===== (1) Includes Retail Center FF0 (Prudential Center Boston and Embarcadero Center). =========================================================================================================== * For this table, Property Funds from Operations is equal to GAAP basis property NOI which includes the effect of straight-line rent and excludes any deduction for interest expense. 13
BOSTON PROPERTIES, INC. First Quarter 1999 OCCUPANCY ANALYSIS Same Property Occupancy - By Location ================================================================================ Location 31-Mar-99 31-Mar-98 - -------- --------- --------- Greater Boston, MA 98.1% 98.1% Greater Washington, D.C 98.2% 97.7% Midtown Manhattan, NY 99.9% 97.2% Baltimore, MD 100.0% 99.7% Princeton/East Brunswick, NJ n/a n/a Richmond, VA n/a n/a Greater San Francisco, CA 95.0% 97.7% Bucks County, PA 100.0% 100.0% ------ ------ Total Portfolio 98.6% 97.8% ====== ====== ================================================================================ Same Property - By Type of Property ================================================================================ 31-Mar-99 31-Mar-98 --------- --------- Total Office Portfolio 99.4% 98.5% Total R&D Portfolio 99.8% 96.0% Total Industrial Portfolio 89.3% 95.0% ------ ------ Total Portfolio 98.6% 97.8% ====== ====== ================================================================================ 14
BOSTON PROPERTIES, INC. First Quarter 1999 IN-SERVICE OFFICE PROPERTIES Lease Expirations ====================================================================================================== Annualized Rentable Square Revenues Under Percentage of Total Year of Lease Footage Subject to Expiring Leases Annualized Current Revenues Expiration Expiring Leases (in thousands) Represented By Expiring Leases ---------- --------------- -------------- ------------------------------ 1999 1,194,745 33,025,197 5.35% 2000 1,538,763 38,592,337 6.25% 2001 2,248,557 69,646,398 11.29% 2002 2,229,123 85,457,363 13.85% 2003 1,813,047 54,155,133 8.78% 2004 1,939,879 57,594,088 9.33% 2005 1,375,602 31,884,543 5.17% 2006 2,353,587 80,800,507 13.09% 2007 1,688,085 60,438,018 9.79% Thereafter 2,885,478 105,552,262 17.10% ====================================================================================================== Occupancy By Location ================================================================================ 31-Mar-99 31-Mar-98 --------- --------- Greater Boston, MA 98.5% 98.1% Greater Washington, D.C. 98.5% 99.9% Midtown Manhattan, NY 99.9% 97.2% Baltimore, MD 100.0% 99.7% Richmond, VA 99.1% 97.4% Princeton/East Brunswick, NJ 99.5% n/a Greater San Francisco, CA 96.7% n/a Bucks County, PA n/a n/a ------ ----- Total Office Portfolio 98.5% 98.5% ====== ===== ================================================================================ 15
BOSTON PROPERTIES, INC. First Quarter 1999 IN-SERVICE R&D PROPERTIES Lease Expirations ============================================================================================ Annualized Rentable Square Revenues Under Percentage of Total Year of Lease Footage Subject to Expiring Leases Annualized Current Revenues Expiration Expiring Leases (in thousands) Represented By Expiring Leases ---------- --------------- -------------- ------------------------------ 1999 215,967 2,293,317 8.28% 2000 350,238 3,631,373 13.11% 2001 180,901 2,081,579 7.51% 2002 334,510 4,620,591 16.68% 2003 89,317 1,180,220 4.26% 2004 50,533 736,579 2.66% 2005 146,741 1,847,469 6.67% 2006 150,000 1,622,501 5.86% 2007 107,895 2,294,165 8.28% Thereafter 345,146 7,393,287 26.69% ============================================================================================ Occupancy By Location ================================================================================ 31-Mar-99 31-Mar-98 --------- --------- Greater Boston, MA 100.0% 100.0% Greater Washington, D.C. 98.8% 96.0% Midtown Manhattan, NY n/a n/a Baltimore, MD n/a n/a Richmond, VA n/a n/a Princeton/East Brunswick, NJ n/a n/a Greater San Francisco, CA 99.0% 93.1% Bucks County, PA n/a n/a ------ ------ Total R&D Portfolio 99.1% 96.9% ====== ====== ================================================================================ 16
BOSTON PROPERTIES, INC. First Quarter 1999 IN-SERVICE INDUSTRIAL PROPERTIES Lease Expirations =================================================================================================== Annualized Rentable Square Revenues Under Percentage of Total Year of Lease Footage Subject to Expiring Leases Annualized Current Revenues Expiration Expiring Leases (in thousands) Represented By Expiring Leases ---------- --------------- ------------- ------------------------------ 1999 63,904 347,237 6.86% 2000 249,280 1,469,129 29.03% 2001 70,829 357,093 7.06% 2002 -- -- 0.00% 2003 143,105 975,445 19.27% 2004 195,076 935,485 18.48% 2005 20,500 110,151 2.18% 2006 -- -- 0.00% 2007 -- -- 0.00% Thereafter 83,609 867,015 17.13% =================================================================================================== Occupancy By Location ================================================================================ 31-Mar-99 31-Mar-98 --------- --------- Greater Boston, MA 93.0% 93.0% Greater Washington, D.C. 73.9% 87.8% Midtown Manhattan, NY n/a n/a Baltimore, MD n/a n/a Richmond, VA n/a n/a Princeton/East Brunswick, NJ n/a n/a Greater San Francisco, CA 92.9% 100.0% Bucks County, PA 100.0% 100.0% ------ ------ Total Industrial Portfolio 89.3% 95.0% ====== ====== ================================================================================ 17
BOSTON PROPERTIES, INC. First Quarter 1999 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES Lease Expiration ================================================================================================== Annualized Rentable Square Revenues Under Percentage of Total Year of Lease Footage Subject to Expiring Leases Annualized Current Revenues Expiration Expiring Leases (in thousands) Represented By Expiring Leases ---------- --------------- ------------- ------------------------------ 1999 1,474,616 35,692,751 5.29% 2000 2,138,281 43,692,839 6.48% 2001 2,500,287 72,085,070 10.68% 2002 2,563,633 90,077,954 13.35% 2003 2,045,469 56,310,798 8.35% 2004 2,185,488 59,266,152 8.78% 2005 1,542,843 33,842,163 5.02% 2006 2,503,587 62,732,183 9.30% 2007 1,795,980 113,812,564 16.87% Thereafter 3,314,232 107,190,048 15.89% ================================================================================================== Occupancy By Location ================================================================================ 31-Mar-99 31-Mar-98 --------- --------- Greater Boston, MA 98.4% 98.0% Greater Washington, D.C. 97.7% 98.3% Midtown Manhattan, NY 99.9% 97.2% Baltimore, MD 100.0% 99.7% Richmond, VA 99.1% 97.4% Princeton/East Brunswick, NJ 99.5% n/a Greater San Francisco, CA 96.5% 97.7% Bucks County, PA 100.0% 100.0% ------ ------ Total Portfolio 98.2% 98.0% ====== ====== ================================================================================ 18
BOSTON PROPERTIES, INC. First Quarter 1999 HOTEL PERFORMANCE SAME PROPERTY HOTELS Long Wharf Marriott - Boston ================================================================================ First Quarter First Quarter Percent 1999 1998 Change ---- ---- ------ Occupancy 85.6% 87.2% -1.83% Average Daily Rate $ 189.01 $ 175.43 7.74% REVPAR $ 161.79 $ 152.97 5.77% ================================================================================ Cambridge Center Marriott ================================================================================ First Quarter First Quarter Percent 1999 1998 Change ---- ---- ------ Occupancy 82.8% 77.2% 7.25% Average Daily Rate $ 158.79 $ 156.55 1.43% REVPAR $ 131.48 $ 120.86 8.79% ================================================================================ Total Same Property Hotel Performance ================================================================================ First Quarter First Quarter Percent 1999 1998 Change ---- ---- ------ Occupancy 84.2% 82.0% 2.68% Average Daily Rate $ 173.37 $ 165.66 4.65% REVPAR $ 146.11 $ 136.36 7.15% ================================================================================ NEWLY PLACED IN SERVICE HOTEL Residence Inn by Marriott ================================================================================ First Quarter First Quarter Percent 1999 1998 Change ---- ---- ------ Occupancy 67.4% N/A N/A Average Daily Rate $ 134.18 N/A N/A REVPAR $ 90.44 N/A N/A ================================================================================ 19
BOSTON PROPERTIES, INC First Quarter 1999 SAME PROPERTY PERFORMANCE Office, R&D, Industrial and Hotel Properties =========================================================================================================================== Office R&D Industrial Hotel Garage Total ------ --- ---------- ----- ------ ----- Number of Properties 43 31 9 2 1 86 Square feet 8,247,657 1,593,153 926,061 750,400 332,442 11,849,713 Percent of in-service properties 41.2% 76.9% 100.0% 100.0% 100% 51% Occupancy @ 3/31/98 98.5% 96.0% 95.0% -- -- 97.8% Occupancy @ 3/31/99 99.4% 99.8% 89.3% -- -- 98.6% Percent change from 1st quarter 1999 over 1st quarter 1998: Revenue 4.8% 7.1% -2.2% 15.2% 18.1% 5.4% Expense 4.2% 0.5% 6.8% 23.4% 52.1% 4.9% Net Operating Income 5.1% 9.4% -5.0% 13.0% 4.8% 5.6% =========================================================================================================================== Same Property Lease Analysis - quarter ended March 31, 1999 ==================================================================================================== Office R&D Industrial Total ------ --- ---------- ----- Vacant space available @ 1/1/99 (sf) 131,617 3,098 98,972 233,687 Square footage of leases expiring or terminated 1/1/99 - 3/31/99 65,453 7,479 -- 72,932 -------- ------ ------ -------- Total space for lease (sf) 197,070 10,577 98,972 306,619 ======== ====== ====== ======== New tenants (sf) 113,237 -- -- 113,237 Renewals (sf) 36,308 7,479 -- 43,787 -------- ------ ------ -------- Total space leased (sf) 149,545 7,479 -- 157,024 ======== ====== ====== ======== Space available @ 3/31/99 (sf) 47,525 3,098 98,972 149,595 ======== ====== ====== ======== Net increase (decrease) in leased space (sf) 84,092 -- -- 84,092 Average lease term (months) 72 12 N/A 70 2nd generation TI/Comm PSF $ 21.16 $0.00 N/A $ 20.15 Increase in 2nd generation net rents (2) 16.6% 2.7% N/A 15.9% ==================================================================================================== (1) For this table, Funds from Operations is equal to GAAP basis property NOI which includes the effect of straight-line rent and excludes any deduction for interest expense. (2) Represents increase in net rents on a "cash to cash" basis. (Actual net rent at time of expiration vs. initial net rent of new lease.) 20
BOSTON PROPERTIES, INC. First Quarter 1999 Same Property Lease Analysis - Year to Date 1/1/98 - 12/31/98 ========================================================================================================= Office R&D Industrial Total ------ --- ---------- ----- Vacant space available @ 1/1/98 (sf) 54,323 41,654 61,222 157,199 Square footage of leases expiring or terminated 1/1/98-12/31/98 418,421 73,783 358,358 850,562 -------- -------- -------- --------- Total space for lease (sf) 472,744 115,437 419,580 1,007,761 ======== ======== ======== ========= New tenants (sf) 183,200 72,494 56,000 311,694 Renewals (sf) 162,745 39,354 264,608 466,707 -------- -------- -------- --------- Total space leased (sf) 345,945 111,848 320,608 778,401 ======== ======== ======== ========= Space available @ 12/31/98 (sf) 126,799 3,098 98,972 228,869 ======== ======== ======== ========= Net increase/(decrease) in leased space (sf) (72,476) 38,556 (37,750) (71,670) Average lease term (months) 64 67 29 50 2nd generation TI/Comm PSF $ 13.66 $ 3.32 $ 1.13 $ 7.07 Increase in 2nd generation net rents (1) 17.0% 12.6% -9.2% 9.9% ========================================================================================================= (1) Represents increase in net rents on a "cash to cash" basis (actual net rent at time of expiration vs. initial net rent of new lease). 21
BOSTON PROPERTIES, INC. First Quarter 1999 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS Historical Capital Expenditures ============================================================================================================================ 1/1-3/31 1993 1994 1995 1996 1997 1998 1999 ---- ---- ---- ---- ---- ---- ---- Recurring capital expenditures $ 1,425 $ 1,812 $ 1,618 $ 1,083 $ 1,125 $ 3,543 $ 1,496 ======== ======== ======== ======== ======== ======== ======== Hotel improvements, equipment upgrades $ 836 $ 1,917 $ 4,420 $ 3,041 $ 2,625 $ 3,872 $ 612 and replacements ======== ======== ======== ======== ======== ======== ======== ============================================================================================================================ 2nd Generation Tenant Improvements and Leasing Commissions ================================================================================================================== 1993 1994 1995 1996 ---- ---- ---- ---- Office Square feet 451,295 690,459 768,459 970,072 -------- -------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 8.45 $ 9.45 $ 10.66 $ 11.40 -------- -------- -------- -------- R&D Square feet 166,957 276,332 177,073 337,676 -------- -------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 5.53 $ 0.68 $ 6.99 $ 10.45 -------- -------- -------- -------- Industrial Square feet 241,500 132,521 308,388 128,148 -------- -------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 0.28 $ 3.32 $ 1.00 $ 1.71 -------- -------- -------- -------- Average tenant improvement and lease commission p.s.f $ 5.59 $ 6.51 $ 7.77 $ 10.31 ======== ======== ======== ======== 1/1-3/31 1997 1998 1999 ---- ---- ---- Office Square feet 1,016,427 648,291 336,313 ---------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 10.83 $ 9.82 $ 15.35 ---------- -------- -------- R&D Square feet 169,878 113,428 13,221 ---------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 2.22 $ 3.32 $ 1.94 ---------- -------- -------- Industrial Square feet 258,795 320,608 -- ---------- -------- -------- Tenant improvement and lease commissions p.s.f. $ 0.99 $ 1.13 $ -- ---------- -------- -------- Average tenant improvement and lease commission p.s.f $ 8.06 $ 6.57 $ 14.85 ========== ======== ======== ================================================================================================================== 22
BOSTON PROPERTIES, INC. First Quarter 1999 VALUE CREATION PIPELINE - ACQUISITIONS/REPOSITIONING as of March 31, 1999 ==================================================================================================================================== Anticipated Initial Future Total Current Property Date Acquired Square Feet Investment Investment Investment Occupancy -------- ------------- ----------- ---------- ---------- ---------- --------- ACQUISITIONS Class A Office Buildings Embarcadero Center Nov-98 4,009,536 $1,216,000,000 $ 37,710,000 $1,253,710,000 97% Sumner Square Mar-99 228,339 32,600,000 3,500,000 36,100,000 67% --------- -------------- ------------- -------------- ---- Total Value Creation Pipeline - 4,237,875 $1,248,600,000 $ 41,210,000 $1,289,810,000 95% Acquisitions ========= ============== ============= ============== ==== ==================================================================================================================================== REPOSITIONS PLACED IN SERVICE DURING THE FIRST QUARTER 1999 ==================================================================================================================================== Anticipated Date Placed Initial Future Total Percent In Service Square Feet Investment Investment Investment Leased ---------- ----------- ---------- ---------- ---------- ------ Class A Office Building 1301 New York Avenue Q1 1999 177,249 $28,000,000 $18,200,000 $46,200,000 100% ==================================================================================================================================== 23
BOSTON PROPERTIES, INC. First Quarter 1999 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS as of March 31, 1999 ================================================================================================== Estimated Placed # of Development Properties In Service Date Location Buildings Square feet - ---------------------- --------------- -------- --------- ----------- Class A Office Buildings 200 West Street Q2 1999 Waltham, MA 1 248,341 Eight Cambridge Center Q2 1999 Cambridge, MA 1 177,226 One Freedom Square (25% ownership) Q4 1999 Reston, VA 1 406,980 The Arboretum Q3 1999 Reston, VA 1 95,584 181 Spring Street Q2 1999 Lexington, MA 1 53,306 Market Square North (50% ownership) Q4 2000 Washington, DC 1 409,843 502 Carnegie Center Q3 1999 Princeton, NJ 1 114,910 Orbital Sciences Phase I Q2 2000 Loudon, VA 1 92,514 --- --------- Total Development Properties 8 1,598,704 === ========= Anticipated Investment Total Percentage Development Properties to Date Investment Leased - ---------------------- ------- ---------- ------ Class A Office Buildings 200 West Street $ 34,324,518 $ 43,423,000 79% Eight Cambridge Center 21,060,224 26,000,000 100% One Freedom Square (25% ownership) 10,962,776 19,150,000(1) 73% The Arboretum 11,194,717 16,223.546 100% 181 Spring Street 9,206,197 12,018,562 0% Market Square North (50% ownership) 50,505,731 57,500,000(2) 14% 502 Carnegie Center 8,151,699 19,320,318 12% Orbital Sciences Phase I 13,189 16,916,854 100% ------------ ------------ ---- Total Development Properties $145,419,051 $210,552,280 58% ============ ============ ==== ================================================================================================== DEVELOPMENTS PLACED IN-SERVICE DURING FIRST QUARTER 1999 ============================================================================================================ Estimated Placed # of In Service Date Location Buildings Square feet --------------- -------- --------- ----------- Class A Office Building One and Two Reston Overlook (25% ownership) Q1-Q2 1998 Reston, VA 2 444,286 Hotels Residence Inn by Marriott Q1 1999 Cambridge, MA 1 187,474 --- ------- Total 3 631,760 === ======= Investment Total Percentage to Date Investment Leased ------- ---------- ------ Class A Office Building' One and Two Reston Overlook (25% ownership) $16,088,706 $18,100,000(1) 100% Hotels Residence Inn by Marriott 23,957,357 32,000,000 n/a ----------- ----------- --- Total $40,046,063 $50,100,000 100% =========== =========== === ============================================================================================================ (1) Represents 25% of the total anticipated project-level investment. (2) Represents 50% of the total anticipated project-level investment. 24
BOSTON PROPERTIES, INC. First Quarter 1999 VALUE CREATION PIPELINE - OWNED LAND PARCELS as of March 31, 1999 ================================================================================ No. of Developable Location Parcels Acreage Square Feet - -------- ------- ------- ----------- Dulles, VA 6 91.1 1,200,000 Rockville, MD 7 128.3 2,331,000 Reston, VA 2 8.8 775,000 Herndon, VA 1 35.5 450,000 Andover, MA 2 27.0 290,000 Springfield, VA 3 9.4 130,000 Boston, MA -- -- (1) 1,600,000(2) ------ ----- --------- 21 300.1 6,776,000 ====== ===== ========= ================================================================================ (1) Parcels and acreage have not yet been determined at this time. (2) Boston Properties has a 50% ownership interest. VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS as of March 31, 1999 ================================================================================ No. of Developable Location Parcels Acreage Square Feet - -------- ------- ------- ----------- Princeton, NJ 15 158.6 1,985,090 Cambridge, MA 1 2.6 209,000 New York, NY 2 1.1 2,300,000 ------ ----- --------- 18 162.3 4,494,090 ====== ===== ========= ================================================================================ 25
BOSTON PROPERTIES, INC. First Quarter 1999 ACQUISITION PROPERTY PROFILE PROPERTY NAME: Sumner Square PRODUCT TYPE: Class A Office Building/Retail LOCATION: Washington, DC DESCRIPTION: Located in the heart of the central business district, Sumner Square is an office complex comprised of three connected structures, including a rehabilitated five story brick school house with a matching annex, a four story converted brick school, and a nine story curtain wall structure, which is the major component of the office complex. The buildings are linked by a two story marble and glass skylit atrium. This was the excluded property as described in the company's prospectus dated June 18, 1997. SIZE: 204,136 square feet YEAR CONSTRUCTED: School rehab and office building completed in 1985. PURCHASE PRICE: $32.6 million CLOSING DATE: March 26, 1999 FUTURE INVESTMENT: $3.5 million OCCUPANCY LEVEL: 67% NUMBER OF TENANTS: 11 FUNDING SOURCE: Unsecured Line of Credit and Operating Partnership Units LARGEST TENANTS: COMPANY: GSA SIZE: 51,283 LEASE EXPIRATION: 08/31/00 COMPANY: Duncan, Weinberg, Miller SIZE: 15,605 LEASE EXPIRATION: 12/01/05 COMPANY: Embassy of Angola SIZE: 12,016 LEASE EXPIRATION: 02/28/01 26
BOSTON PROPERTIES, INC. First Quarter 1999 ACQUISITION PROPERTY PROFILE PROPERTY NAME: Embarcadero Center PRODUCT TYPE: Multi-use LOCATION: San Francisco, California DESCRIPTION: The largest mixed-use business complex in the western United States, comprised of 6 multi-tenant Class-A office towers as well as retail shops, restaurants, entertainment facilities and parking. YEAR CONSTRUCTED: Embarcadero Centers 1-4 and West Tower - 1971-1989 The Old Federal Reserve Building - 1924/1988 PURCHASE PRICE: $1.2 Billion CLOSING DATE: November 12, 1998 (Phase One) February 10, 1999 (Phase Two) FUTURE INVESTMENT: $32.7 million OCCUPANCY LEVEL: 96.7% NUMBER OF TENANTS: 320 FUNDING SOURCE: Cash, Preferred Operating Partnership Units, Debt Financing LARGEST TENANTS: Company: Orrick, Herrington & Sutcliffe Size: 146,013 Lease Expiration: 07/31/2004 Company: Industrial Indemnity Company Size: 103,567 Lease Expiration: 05/31/2004 Company: Peat Marwick, KPMG Size: 98,598 Lease Expiration: 12/31/2009 Company: Dresdner RCM Global Investors Size: 91,040 Lease Expiration: 10/31/2001 27
BOSTON PROPERTIES, INC. 8 ARLINGTON STREET BOSTON, MA 02116 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD Edward H. Linde Marianne Stewart - General Info. (212) 661-8030 President, CEO, & Director Claire Koeneman - Analyst (312) 266-7800 David G. Gaw Judith Sylk-Siegel - Media (212) 661-8030 SVP & CFO (617) 859-2600 FOR IMMEDIATE RELEASE: April 27, 1999 BOSTON PROPERTIES, INC. ANNOUNCES FIRST QUARTER 1999 RESULTS BOSTON, MA, APRIL 27, 1999 - Boston Properties, Inc. (NYSE: BXP) today reported results for the first quarter ended March 31, 1999. Funds from Operations (FFO) for the quarter ended March 31, 1999 were approximately $45.7 million, or $0.72 per share basic and $0.70 per share diluted, compared to FFO of approximately $29.3 million, or $0.54 per share basic and $0.53 per share diluted for the quarter ended March 31, 1998. The weighted average number of basic and diluted shares outstanding totaled 63,533,638 and 75,862,001 for the quarter ended March 31, 1999, and 54,282,930 and 54,901,575, respectively, for the same quarter last year. Revenues were approximately $187.6 million for the quarter, compared to revenue of $95.6 million for the same period in 1998. Net income available to common shareholders for the quarter was approximately $24.9 million, compared to $19.6 million for the same period in 1998. Net income per share available to common shareholders for the quarter was $0.39 per share basic and diluted, compared to $0.36 per share basic and diluted last year. The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended March 31, 1999. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. -MORE-
Boston Properties, Inc. Announces 1Q99 Results Page 2 As of March 31, 1999, the Company's portfolio consisted of 124 properties comprising more than 32.0 million square feet, including eight properties under development totaling approximately 1.6 million square feet. The overall occupancy rate for the properties in service as of March 31, 1999 was 98.2%. Properties under development which were placed in service during the first quarter include: - - One and Two Reston Overlook, an approximately 444,000-square-foot Class A office complex located in Reston, VA. Building I is a 12-story, 323,000-square-foot building built-to-suit TRW, a multinational information technology company, on January 15, 1999. Building II is a six-story, 133,000-square-foot building that is 100% leased and 65% occupied with the remaining tenants to take occupancy by June 1, 1999. The Company has a 25% interest in these properties. - - The Residence Inn at Cambridge Center Six, an approximately 187,500-square-foot hotel with 221 suites located in Cambridge, MA, on February 1, 1999. The Residence Inn is managed by Marriott and is targeted toward extended hotel stays. - - 1301 New York Avenue, an approximately 178,000-square-foot Class A office building in Washington, D.C., on February 13, 1999. The property was acquired on August 14, 1998 and has undergone extensive renovations. The building is currently 100% leased to the General Services Administration. Additional highlights of the first quarter include: - - Signed binding agreement giving the Company the right to acquire, between now and January 2001, the leasehold interest in the remaining two office development sites in New York City's Times Square for a total purchase price of $312.25 million. Affiliates of the Prudential Insurance Company of America, the sellers, will retain the right to become 33.33% equity participants in the development ventures by contributing, upon an election to participate, their proportionate share of the total project equity. - - Completion of the acquisition of Embarcadero Center, an approximately 4.0 million-square-foot mixed-use urban center located in San Francisco, California, on February 10, 1999. The total acquisition price was approximately $1.2 billion. - - Issuance of 2,000,000 shares of the Company's Series A Convertible Redeemable Preferred Stock for $100.0 million on February 10, 1999 in connection with the acquisition of Embarcadero Center. - - Acquisition of Sumner Square, an approximately 204,000-square-foot office-complex located in Washington, D.C., on March 26, 1999 for approximately $32.6 million, from related parties. -MORE-
Boston Properties, Inc. Announces 1Q99 Results Page 3 Boston Properties, Inc. is a fully integrated, self-administered and self-managed real estate investment trust ("REIT") that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of office, industrial, and hotel properties located predominantly in the Greater Boston; Greater Washington, D.C.; midtown Manhattan; Greater San Francisco; Baltimore, Maryland; Princeton/East Brunswick, New Jersey; and Richmond, Virginia markets. The Company is one of the largest owners and developers of office properties in the United States. To receive Boston Properties' latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO; use company code BXP. Visit the Company's web site at http://www.bostonproperties.com. Also see http://www.frbinc.com. THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO RISKS AND UNCERTAINTIES, MANY OF WHICH CANNOT BE PREDICTED WITH ACCURACY. ACQUISITIONS THAT ARE PURSUED BY BOSTON PROPERTIES MAY NOT BE CONSUMMATED FOR A VARIETY OF REASONS, INCLUDING A FAILURE TO REACH AGREEMENT WITH THE SELLING PARTY REGARDING THE ACQUISITION PRICE OR OTHER TERMS OF A CONTRIBUTION OR ACQUISITION AGREEMENT. AGREEMENTS THAT THE COMPANY ENTERS INTO MAY BE TERMINATED FOR A VARIETY OF REASONS, INCLUDING A FAILURE BY THE COMPANY OR THE OTHER PARTY TO FULFILL ALL CONDITIONS REQUIRED FOR CONSUMMATION OF THE AGREEMENTS. Financial tables follow. ###
Boston Properties, Inc. Announces 1Q99 Results Page 4 BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED AND IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) Three months ended March 31, ------------------------------------------------ 1999 1998 --------------------- ---------------------- Revenue Rental: Base rent $ 151,609 $ 79,270 Recoveries from tenants 17,414 9,557 Parking and other 10,924 1,111 --------------------- ---------------------- Total rental revenue 179,947 89,938 Development and management services 4,047 1,776 Interest and other 3,646 3,889 --------------------- ---------------------- Total revenue 187,640 95,603 --------------------- ---------------------- Expenses Rental: Operating 33,576 12,999 Real estate taxes 23,774 13,531 General and administrative 6,610 4,821 Interest 50,459 24,929 Depreciation and amortization 27,794 13,095 --------------------- ---------------------- Total expenses 142,213 69,375 --------------------- ---------------------- Income before minority interests and joint venture income 45,427 26,228 Minority interest in property partnership (4,155) (123) Income from unconsolidated joint venture 213 - --------------------- ---------------------- Income before minority interest in Operating Partnership 41,485 26,105 Minority interest in Operating Partnership (15,712) (6,474) --------------------- ---------------------- Net income 25,773 19,631 Preferred dividend (839) - --------------------- ---------------------- Net income available to common shareholders $ 24,934 $ 19,631 --------------------- ---------------------- --------------------- ---------------------- Basic earnings per share: Net income available to common shareholders $ 0.39 $ 0.36 --------------------- ---------------------- --------------------- ---------------------- Weighted average number of common shares outstanding 63,534 54,283 --------------------- ---------------------- --------------------- ---------------------- Diluted earnings per share: Net income $ 0.39 $ 0.36 --------------------- ---------------------- --------------------- ---------------------- Weighted average number of common and common equivalent shares outstanding 64,078 54,902 --------------------- ---------------------- --------------------- ----------------------
Boston Properties, Inc. Announces 1Q99 Results Page 5 BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (IN THOUSANDS, EXCEPT SHARE AMOUNTS) March 31, 1999 December 31, 1998 -------------------------- -------------------------- ASSETS (unaudited) Real estate: $ 5,018,949 $ 4,917,193 Less: accumulated depreciation (383,779) (357,384) -------------------------- -------------------------- Total real estate 4,635,170 4,559,809 Cash and cash equivalents 33,597 12,166 Notes receivable - 420,143 Escrows 23,365 19,014 Tenant and other receivables, net 42,188 40,830 Accrued rental income, net 68,615 64,251 Deferred charges, net 47,893 46,029 Prepaid expenses and other assets 25,166 26,058 Investments in joint ventures 59,664 46,787 -------------------------- -------------------------- Total assets $ 4,935,658 $ 5,235,087 -------------------------- -------------------------- -------------------------- -------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 2,758,755 $ 2,653,581 Notes payable - 420,143 Unsecured line of credit 252,000 15,000 Accounts payable and accrued expenses 51,282 33,638 Dividends payable 43,342 40,494 Accrued interest payable 12,028 7,307 Other liabilities 22,688 37,209 -------------------------- -------------------------- Total liabilities 3,140,095 3,207,372 -------------------------- -------------------------- Commitments and contingencies - - Minority interests 768,119 1,079,234 Preferred stock, $.01 par value, 50,000,000 shares authorized, 2,000,000 issued and outstanding 100,000 - Stockholders' equity: Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding - - Common stock, $.01 par value, 250,000,000 shares authorized, 63,540,106 and 63,527,819 issued and outstanding, respectively 635 635 Additional paid-in capital 936,745 955,711 Dividends in excess of earnings (9,936) (7,865) -------------------------- -------------------------- Total stockholders' equity 927,444 948,481 -------------------------- -------------------------- Total liabilities and stockholders' equity $ 4,935,658 $ 5,235,087 -------------------------- -------------------------- -------------------------- --------------------------
Boston Properties, Inc. Announces 1Q99 Results Page 6 BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS) Three months ended March 31, -------------------------------------------- 1999 1998 -------------------- ---------------------- Income before minority interests $ 45,427 $ 26,228 Add: Real estate depreciation and amortization 27,549 12,944 Income from unconsolidated joint venture 213 - Less: Minority property partnership's share of Funds from Operations (3,163) (144) Preferred dividends and distributions (7,212) - -------------------- ---------------------- Funds from operations $ 62,814 $ 39,028 -------------------- ---------------------- -------------------- ---------------------- Funds from operations available to common shareholders $ 45,697 $ 29,349 -------------------- ---------------------- -------------------- ---------------------- Weighted average shares outstanding - basic 63,534 54,283 -------------------- ---------------------- -------------------- ---------------------- Per share - basic $ 0.72 $ 0.54 -------------------- ---------------------- -------------------- ---------------------- Weighted average shares outstanding - diluted 75,862 54,902 -------------------- ---------------------- -------------------- ---------------------- Per share - diluted $ 0.70 $ 0.53 -------------------- ---------------------- -------------------- ----------------------
Boston Properties, Inc. Announces 1Q99 Results Page 7 BOSTON PROPERTIES, INC PORTFOLIO OCCUPANCY Occupancy by Location ---------------------------------------------- March 31, 1999 December 31, 1998 ------------------- ----------------------- Greater Boston 98.4% 97.0% Greater Washington, D.C. 97.7% 98.5% Midtown Manhattan 99.9% 99.9% Baltimore, MD 100.0% 99.8% Richmond, VA 99.1% 98.8% Princeton/East Brunswick, NJ 99.5% 98.7% Greater San Francisco 96.5% 98.5% Bucks County, PA 100.0% 100.0% ------------------- ----------------------- Total Portfolio 98.2% 98.4% ------------------- ----------------------- ------------------- ----------------------- Occupancy by Type ---------------------------------------------- March 31, 1999 December 31, 1998 ------------------- ----------------------- Class A Office Portfolio 98.5% 98.8% R&D Portfolio 99.1% 99.2% Industrial Portfolio 89.3% 89.3% ------------------- ----------------------- Total Portfolio 98.2% 98.4% ------------------- ----------------------- ------------------- -----------------------