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 25, 2000 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.) 800 BOYLSTON STREET BOSTON, MASSACHUSETTS 02199 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (617) 236-3300 ITEM 5. OTHER EVENTS Following the issuance of a press release on April 25, 2000, announcing the Company's results for the first quarter ended March 31, 2000, 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, 2000. 99.2 The Boston Properties, Inc. press release dated April 25, 2000 for the quarter ended March 31, 2000. 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 26, 2000 BOSTON PROPERTIES, INC. /s/ David G. Gaw --------------------------------- By: David G. Gaw Chief Financial Officer
EXHIBIT 99.1 BOSTON PROPERTIES, INC. SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED MARCH 31, 2000 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 INDEX 1
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 11-13 JOINT VENTURES 14 PORTFOLIO OVERVIEW-SQUARE FOOTAGE 15 TOP 20 TENANTS 16 PORTFOLIO OVERVIEW-FFO 17 OCCUPANCY ANALYSIS 18 OFFICE PROPERTIES-LEASE EXPIRATION ROLL OUT 19 R&D PROPERTIES-LEASE EXPIRATION ROLL OUT 20 INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 21 GRAND TOTAL - OFFICE, R&D AND INDUSTRIAL PROPERTIES 22 BOSTON AREA LEASE EXPIRATION ROLL OUT 23 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 24 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 25 NEW YORK AREA LEASE EXPIRATION ROLL OUT 26 NEW JERSEY AREA LEASE EXPIRATION ROLL OUT 27 OTHER AREA LEASE EXPIRATION ROLL OUT 28 HOTEL PERFORMANCE 29 SAME PROPERTY PERFORMANCE 30 "IN-SERVICE" PROPERTY PERFORMANCE 31 CAPITAL EXPENDITURES 32 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 33 VALUE CREATION PIPELINE - DEVELOPMENT 34 VALUE CREATION PIPELINE - LAND PARCELS 35 ACQUISITION PROPERTY PROFILES 36-37 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 COMPANY BACKGROUND 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 office, industrial and hotel properties. The Company is one of the largest owners and developers of office properties in the United States, concentrated in the Northeast Corridor from Virginia to Greater Boston and in greater San Francisco. 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. On May 20, 1999, the Company raised an additional $141,002,500, net of issuance costs, through the issuance of 4,000,000 shares. 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 47 properties adding approximately 16.0 million square feet to its portfolio, representing an investment of approximately $3.9 billion. In addition, the Company is developing twelve Class A Office Buildings for a total anticipated investment of approximately $1.1 billion. The Company owns or controls land where it can develop an additional 10.5 million square feet. 2 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 INVESTOR INFORMATION 800 Boylston Street Boston, MA 02199 (617) 236-3300 (617) 536-5087 (fax) TIMING QUARTERLY RESULTS FOR 2000 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING ANTICIPATED SCHEDULE:
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 Elaine M. Quinlan Director of Investor Relations 3
SECOND QUARTER 2000 WEEK OF JULY 24-28 THIRD QUARTER 2000 WEEK OF OCTOBER 23-27 YEAR END 2000 WEEK OF JANUARY 22-26 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 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: 4
1ST QUARTER 2000 1ST QUARTER 1999 ---------------- ---------------- HIGH PRICE $ 32.3750 $ 34.6875 LOW PRICE $ 29.8125 $ 30.3125 CLOSING PRICE $ 31.8125 $ 31.6250 DIVIDENDS PER SHARE - ANNUALIZED $ 1.80 $ 1.70 CLOSING DIVIDEND YIELD - ANNUALIZED 5.66% 5.38% CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 105,341 100,290 CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $ 3,351,161 $ 3,171,671 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 FINANCIAL HIGHLIGHTS (UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED ------------------------------------------------------------ MARCH 31, 2000 MARCH 31, 1999 % CHANGE -------------- -------------- -------- INCOME ITEMS: Revenues $ 210,254 $ 187,640 12.05% Net Income available to common shareholders $ 30,977 $ 24,934 24.24% Funds from Operations $ 73,946 $ 62,814 17.72% Company's share (73.89% and 72.75%) $ 54,641 $ 45,697 19.57% Funds from Operations per share - basic $ 0.80 $ 0.72 11.81% Funds from Operations per share - diluted $ 0.78 $ 0.70 11.42% Dividends per share $ 0.45 $ 0.425 5.88% RATIOS: Interest Coverage Ratio 2.53 2.47 2.40% Dividend Payout Ratio 57.70% 60.71% -4.96% 5
MARCH 31, 2000 DECEMBER 31, 1999 % CHANGE -------------- ----------------- -------- CAPITALIZATION: Total Debt $ 3,530,399 $ 3,321,584 6.29% Total Common Shares Outstanding @ Quarter End 67,954 67,910 0.06% Total Preferred Shares Outstanding @ Quarter End (if converted) 2,625 2,625 0.00% Total Common Units Outstanding @ Quarter End 24,386 23,810 2.42% Total Preferred Units Outstanding @ Quarter End (if converted) 10,376 10,376 0.00% Price @ Quarter End $ 31.8125 $ 31.1250 2.21% Equity Value @ Quarter End $ 3,351,161 $ 3,259,441 2.81% Total Market Capitalization $ 6,881,560 $ 6,581,025 4.57% Debt/Total Market Capitalization 51.30% 50.47% 1.64% BOSTON PROPERTIES, INC. FIRST QUARTER 2000 CONSOLIDATED BALANCE SHEETS (UNAUDITED AND IN THOUSANDS) 6
MARCH 31, 2000 DECEMBER 31, 1999 -------------- ------------------ ASSETS Real estate and equipment $ 5,316,084 $ 5,150,341 Development in progress 417,429 334,983 Land held for future development 114,628 126,934 Less accumulated depreciation (501,554) (470,591) ----------- ----------- Total real estate and equipment 5,346,587 5,141,667 Cash 18,335 12,035 Escrows 30,085 40,254 Investments in securities 73,023 14,460 Tenant and other receivables 34,539 28,362 Accrued rental income 85,089 82,228 Deferred charges, net 67,711 50,899 Prepaid expenses and other assets 24,407 28,452 Investment in joint ventures 36,541 36,415 ----------- ----------- TOTAL ASSETS $ 5,716,317 $ 5,434,772 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 3,186,399 $ 2,955,584 Unsecured line of credit 344,000 366,000 Accounts payable and accrued expenses 57,098 66,780 Dividends payable 51,205 50,114 Accrued interest payable 5,154 8,486 Other liabilities 55,553 48,282 ----------- ----------- Total liabilities 3,699,409 3,495,246 ----------- ----------- Commitments and contingencies - - ----------- ----------- Minority interests 808,826 781,962 ----------- ----------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 ----------- ----------- 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, 67,954,225 and 67,910,434 issued and outstanding, respectively 680 679 Additional paid-in capital 1,060,341 1,067,778 Dividend in excess of earnings (10,495) (10,893) Deferred compensation (1,007) - Accumulated other comprehensive income 58,563 - ----------- ----------- Total stockholders' equity 1,108,082 1,057,564 ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,716,317 $ 5,434,772 =========== =========== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 CONSOLIDATED INCOME STATEMENTS (UNAUDITED AND IN THOUSANDS) (1) Base Rent is reported on a straight-line basis over the terms of the respective leases. The impact of the straight-line rent adjustment increased revenues by $2,841 and $4,264 for the three months ended March 31, 2000 and 1999, respectively. (2) Excludes capitalized interest of $8,464 and $2,985 for the three months ended March 31, 2000 and 1999, respectively. (3) Equals minority interest percent (26.11% and 27.25%, respectively) of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions. 7
THREE MONTHS ENDED ---------------------------------------- 31-MAR-00 31-MAR-99 % CHANGE --------- --------- -------- Revenue: Rental Base Rent (1) $ 170,337 $151,609 12.35% Recoveries from tenants 23,336 17,414 34.01% Parking and other 13,008 10,924 19.08% --------- -------- ----- Total rental revenue 206,681 179,947 14.86% Development and management services 2,863 4,047 -29.26% Interest and other 710 3,646 -80.53% --------- -------- ----- Total revenue 210,254 187,640 12.05% --------- -------- ----- Expenses: Rental expenses 65,177 57,350 13.65% General and administrative 7,408 6,610 12.07% Interest (2) 55,215 50,459 9.43% Depreciation and amortization 32,231 27,794 15.96% --------- -------- ----- Total expenses 160,031 142,213 12.53% --------- -------- ----- Income before minority interests and before income from unconsolidated joint ventures 50,223 45,427 10.56% Minority interest in property partnerships (196) (4,155) -95.28% Income from unconsolidated joint ventures 145 213 -31.92% --------- -------- ----- Income before preferred distribution and minority interest in Operating Partnership 50,172 41,485 20.94% Preferred distribution (6,607) (6,373) 3.67% Minority interest in Operating Partnership (3) (10,945) (9,339) 17.20% --------- -------- ----- Net income before preferred dividend 32,620 25,773 26.57% Preferred dividend (1,643) (839) 95.83% --------- -------- ----- Net income available to common shareholders $ 30,977 $ 24,934 24.24% ========= ======== ===== INCOME PER SHARE OF COMMON STOCK Net income available to common shareholders per share - basic $ 0.46 $ 0.39 17.95% ========= ======== ===== Net income available to common shareholders per share - diluted $ 0.45 $ 0.39 15.38% ========= ======== ===== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $259 and $0, less corporate related depreciation of $438 and $245, for the three months ended March 31, 2000 and 1999, respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended March 31, 2000 was 73.89% and 72.75% for the quarter ended March 31, 1999. RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
THREE MONTHS ENDED -------------------------------------------- 31-MAR-00 31-MAR-99 % CHANGE --------- --------- -------- Income from operations before minority interests and before income from $ 50,223 $ 45,427 10.56% unconsolidated joint ventures Add: Real estate depreciation and amortization (1) 32,052 27,549 16.35% Income from unconsolidated joint ventures 145 213 -31.92% Less: Minority property partnerships' share of funds from operations 224 3,163 -92.92% Preferred dividends and distributions 8,250 7,212 14.39% -------- -------- ------ Funds from Operations $ 73,946 $ 62,814 17.72% ======== ======== ====== Funds from Operations available to common shareholders (2) $ 54,641 $ 45,697 19.57% ======== ======== ====== Funds from Operations per share - basic $ 0.80 $ 0.72 11.81% ======== ======== ====== Weighted average shares outstanding - basic 67,943 63,534 6.94% ======== ======== ====== Funds from Operations per share - diluted $ 0.78 $ 0.70 11.43% ======== ======== ====== Weighted average shares outstanding - diluted 81,381 75,862 7.28% ======== ======== ====== (1) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended March 31, 2000 was 77.22% and 76.12% for the quarter ended March 31, 1999. 8
For the Three Months Ended March 31, 2000 For the Three Months Ended March 31, 1999 ----------------------------------------- -------------------------------------------- Income Shares Per Share Income Shares Per Share (Numerator) (Denominator) Amount (Numerator) (Denominator) Amount Basic Funds from Operations $ 73,946 91,948 $ 0.80 $ 62,814 87,330 $ 0.72 Effect of Dilutive Securities Convertible Preferred Units 6,607 10,376 (0.01) 6,373 10,325 (0.01) Convertible Preferred Stock 1,643 2,625 - 839 1,458 - Stock Options - 438 (0.01) - 545 (0.01) -------- ------- ------- -------- ------ ------ Dilutive Funds from Operations (1) $ 82,196 105,387 $ 0.78 $ 70,026 99,658 $ 0.70 ======== ======= ======= ======== ====== ====== Company's share of Diluted Funds from Operations $ 63,473 81,381 $ 0.78 $ 53,306 75,862 $ 0.70 ======== ======= ======= ======== ====== ====== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 FINANCIAL RATIOS (1) EBITDA is equal to earnings before interest, taxes, depreciation and amortization. (2) FFO is calculated based on the NAREIT White Paper. 9
THREE MONTHS ENDED MARCH 31, 2000 ------------------ RATIOS COMPUTED FOR INDUSTRY COMPARISONS: OPERATIONAL RATIOS (1)(2) Debt Service Coverage Ratio 2.25 (EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal) Interest Coverage Ratio 2.53 (EBITDA + Income from Unconsolidated Joint Venture)/Interest Return on Shareholder's Equity 16.52% (EBITDA - Interest)/Average Equity (book value) (%) Return on Real Estate Investments 10.40% (EBITDA/Average Real Estate Investments (book value)) (%) FFO Payout Ratio 57.70% (Dividends Declared/FFO) (%) BOSTON PROPERTIES, INC. FIRST QUARTER 2000 CAPITAL STRUCTURE DEBT (in thousands) EQUITY (in thousands)
AGGREGATE PRINCIPAL MARCH 31, 2000 -------------- Mortgage Loans $ 3,186,399 Unsecured Line of Credit 344,000 ------------ Total Debt $ 3,530,399 ============ (1) Value based on March 31, 2000 closing price of $31.8125. 10
COMMON SHARES & UNITS STOCK $ VALUE OUTSTANDING EQUIVALENTS EQUIVALENT (1) ----------- ----------- -------------- Common Stock 67,954 67,954 $ 2,161,787 Preferred Stock 2,000 2,625 83,508 Operating Partnership Units 24,386 24,386 775,780 Preferred Operating Partnership Units 8,713 10,376 330,087 ------ ----------- Total Equity 105,341 $ 3,351,161 ======= =========== Total Market Capitalization $ 6,881,560 =========== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003 (IN THOUSANDS)
YEAR 2000 2001 2002 2003 2004 THEREAFTER TOTAL ---- ---- ---- ---- ---- ---- ---------- ----- Amount $ 259,955 $ 158,784 $ 444,983 $696,767 $124,593 $ 1,845,317 $ 3,530,399 UNSECURED AND SECURED DEBT ANALYSIS
OUTSTANDING LETTERS OF REMAINING FACILITY @ 3/31/2000 CREDIT CAPACITY - -------- ----------- ------ -------- $ 500,000 0 344,000 32,542 $123,458 FLOATING AND FIXED RATE DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ -------- Unsecured Debt 9.74% 7.64% 3.0 years Secured Debt 90.26% 7.03% 5.7 years ------ ---- --------- Total Debt 100.00% 7.09% 5.5 years ====== ==== ========= 11
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 18.14% 7.77% 2.4 years Fixed Rate Debt 81.86% 7.06% 6.1 years ------ ---- --------- Total Debt 100.00% 7.09% 5.5 years ====== ==== ========= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) (1) For the period from April 1, 2000 through December 31, 2000. 12
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL - ------------------------------ --------- -------- -------- -------- ------- ---------- -------- The Unsecured Line of Credit $ - $ - $ - $344,000 $ - $ - $344,000 Prudential Center 2,590 3,777 4,039 4,319 4,564 275,253 294,542 599 Lexington Avenue - - - - - 225,000 225,000 280 Park Avenue 2,933 8,800 208,267 - - - 220,000 Embarcadero Center One 1,392 1,968 2,104 2,249 2,404 147,713 157,830 Embarcadero Center Two 1,392 1,968 2,104 2,249 2,404 147,713 157,830 Embarcadero Center Four 1,804 2,894 3,097 3,314 3,546 141,916 156,571 875 Third Avenue 1,938 2,341 148,454 - - - 152,733 Embarcadero Center Three 1,227 1,941 2,069 2,206 2,351 137,903 147,697 5 Times Square - - - 137,170 - - 137,170 Two Independence Square 1,465 1,032 1,500 113,845 - - 117,842 Riverfront Plaza 1,699 2,397 2,560 2,735 2,921 105,034 117,346 Democracy Center 1,119 1,588 1,703 1,828 1,961 100,510 108,709 Metropolitan Square 104,528 - - - - - 104,528 Embarcadero Center West Tower 803 1,272 1,358 1,449 1,546 92,065 98,493 100 East Pratt Street 1,142 1,615 1,727 1,847 1,975 84,687 92,993 Reservoir Place 1,312 1,978 2,669 2,859 3,062 63,345 75,225 One Independence Square 1,003 74,114 - - - - 75,117 The Gateway 75,000 - - - - - 75,000 One & Two Reston Overlook 442 705 759 818 65,907 - 68,631 2300 N Street - - - 66,000 - - 66,000 Capital Gallery 766 1,097 1,191 1,293 1,404 52,176 57,927 504,506,508 Carnegie Center 530 845 910 978 1,054 44,585 48,902 10 and 20 Burlington Mall Road - 37,000 - - - - 37,000 1301 New York Avenue 641 1,046 1,129 1,403 1,314 27,823 33,356 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 DEBT ANALYSIS LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) For the period from April 1, 2000 through December 31, 2000. 13
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL - ------------------------------ -------- -------- -------- -------- -------- ---------- ---------- Eight Cambridge Center 292 442 477 515 567 26,429 28,722 510 Carnegie Center 326 475 511 550 587 25,536 27,985 Lockheed Martin Building 367 529 565 604 640 23,956 26,661 University Place 404 573 615 659 706 22,700 25,657 Reston Corporate Center 351 506 540 577 1,620 21,571 25,165 111 Huntington Avenue - - 24,663 - - - 24,663 191 Spring Street 240 344 374 407 443 21,256 23,064 Bedford Business Park 372 539 587 639 695 19,260 22,092 NIMA Building 305 438 468 499 529 19,565 21,804 Sumner Square - - - - 21,624 - 21,624 212 Carnegie Center 20,548 - - - - - 20,548 202 Carnegie Center 19,106 - - - - - 19,106 Orbital Sciences - - 15,659 - - - 15,659 New Dominion Technology Park - - 14,197 - - - 14,197 214 Carnegie Center 13,269 - - - - - 13,269 101 Carnegie Center 187 299 322 348 345 7,058 8,559 Montvale Center 94 135 147 160 175 6,937 7,648 Newport Office Park 227 5,923 - - - - 6,150 Hilltop Business Center 116 164 176 188 201 5,009 5,854 302 Carnegie Center - - - 1,014 - - 1,014 201 Carnegie Center 25 39 42 45 48 317 516 -------- -------- -------- -------- -------- ---------- ---------- $259,955 $158,784 $444,983 $696,767 $124,593 $1,845,317 $3,530,399 ======== ======== ======== ======== ======== ========== ========== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 JOINT VENTURES (UNAUDITED AND IN THOUSANDS) AS OF MARCH 31, 2000 (1) Represents the Company's share. (2) Includes the residential component of the joint venture. RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES FOR THE THREE MONTHS ENDED MARCH 31, 2000
ONE MARKET FREEDOM SQUARE SQUARE NORTH (2) COMBINED ------- --------- -------- Total Equity (1) $ 5,644 $ 30,897 $ 36,541 ======= ======== ======== Mortgage/Construction loans payable (1) $13,179 $ 27,425 $ 40,604 ======= ======== ======== BXP's ownership percentage 25.00% 50.00% ======= ======== (1) Represents the operations for the period from January 1, 2000 through January 11, 2000, prior to the Company's acquisition of their joint venture partner's 75% interest. 14
ONE MARKET ONE AND TWO FREEDOM SQUARE RESTON SQUARE NORTH OVERLOOK (1) COMBINED --------------- ------------- ------------- ------------ REVENUE Total rental revenue $ 2,444 $ 1,134 $ 385 $ 3,963 Interest and other - 19 - 19 ------- ------- ----- ------- Total revenue 2,444 1,153 385 3,982 ------- ------- ----- ------- EXPENSES Operating 820 548 85 1,453 Interest 672 374 152 1,198 Depreciation and amortization 575 174 82 831 ------- ------- ----- ------- Total expenses 2,067 1,096 319 3,482 ------- ------- ----- ------- Net income $ 377 $ 57 $ 66 $ 500 ======= ======= ===== ======= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 PORTFOLIO OVERVIEW- SQUARE FOOTAGE RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY (1) Includes retail square footage of approximately 1,000,000. (2) Includes 414,296 square feet at One Freedom Square which is 25% owned by Boston Properties. HOTEL PROPERTIES
GEOGRAPHIC AREA OFFICE (1) R&D INDUSTRIAL TOTAL % OF TOTAL --------------- ---------- --- ---------- ----- ---------- Greater Boston 5,422,542 545,206 247,318 6,215,066 24.31% Greater Washington, D.C. 5,486,054(2) 1,382,925 237,195 7,106,174 27.79% Greater San Francisco 4,439,355 144,366 280,213 4,863,934 19.02% Midtown Manhattan 2,875,966 - - 2,875,966 11.25% Princeton/East Brunswick, NJ 2,279,865 - - 2,279,865 8.92% Baltimore, MD 1,175,488 - - 1,175,488 4.60% Richmond, VA 892,094 - - 892,094 3.49% Bucks County, PA - - 161,000 161,000 0.63% ---------- --------- ------- --------- ------ 22,571,364 2,072,497 925,726 25,569,587 100.00% ========== ========= ======= ========== ====== % of Total 88.27% 8.11% 3.62% 100.00% GARAGE PROPERTY AND STRUCTURED PARKING
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 ============ =========== 15
NUMBER OF SQUARE SPACES FEET ------------ ----------- GARAGE PROPERTIES Cambridge Center North Garage 1,170 332,442 STRUCTURED PARKING 15,556 5,518,779 ------------ ----------- TOTAL GARAGE PROPERTY AND STRUCTURED PARKING 16,726 5,851,221 ============ =========== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 TOP 20 TENANTS BY SQUARE FEET LEASED MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
TENANT SQ. FT. % OF PORTFOLIO ---------------------------------------------- ------------------- -------------- 1 General Services Administration 1,973,603 7.7% 2 Lockheed Martin Corporation 716,653 2.8% 3 Gillette Company 492,000 1.9% 4 Raytheon 485,000 1.8% 5 Shearman & Sterling 427,707 1.7% 6 AT&T 420,006 1.6% 7 Marsh & McLennan, Inc. 369,558 1.4% 8 TRW 337,187 1.3% 9 Covance, Inc. 321,261 1.3% 10 Hunton & Williams 311,299 1.2% 11 Debevoise & Plimpton 307,125 1.2% 12 T. Rowe Price Associates, Inc. 270,942 1.1% 13 First Union 254,214 1.0% 14 Andersen Consulting 248,620 1.0% 15 Bankers Trust 243,722 0.9% 16 John Hancock Advisors 233,516 0.9% 17 Parexel International Corp. 228,903 0.9% 18 Orrick, Herrington & Sutcliffe 216,300 0.8% 19 National Football League 205,145 0.8% 20 Shaw Pittman Potts & Trowbridge 204,154 0.8% 16
TENANT SQ. FT. - ---------------------------------------------- ------------------- Ernst & Young, LLP 1,062,203 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 PORTFOLIO OVERVIEW - FFO PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS* FOR IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED MARCH 31, 2000 (1) Includes Retail Center FFO (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. 17
GEOGRAPHIC AREA OFFICE (1) R&D INDUSTRIAL HOTEL GARAGE TOTAL --------------- --------- --- ---------- ----- ------ ----- Greater Boston 17.1% 0.8% 0.2% 3.8% 0.3% 22.2% Greater Washington, D.C. 22.8% 2.8% 0.2% n/a n/a 25.8% Greater San Francisco 20.8% 0.3% 0.2% n/a n/a 21.3% Midtown Manhattan 16.8% n/a n/a n/a n/a 16.8% Baltimore, MD 3.9% n/a n/a n/a n/a 3.9% Richmond, VA 3.0% n/a n/a n/a n/a 3.0% Princeton/East Brunswick, NJ 6.9% n/a n/a n/a n/a 6.9% Bucks County, PA n/a n/a 0.1% n/a n/a 0.1% --------- ------- -------- -------- -------- -------- Total 91.3% 3.9% 0.7% 3.8% 0.3% 100.0% ========= ======= ======== ======== ======== ======== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 OCCUPANCY ANALYSIS SAME PROPERTY OCCUPANCY - BY LOCATION SAME PROPERTY - BY TYPE OF PROPERTY
LOCATION 31-MAR-00 31-MAR-99 - -------- --------- --------- Greater Boston, MA 99.0% 98.4% Greater Washington, D.C. 97.0% 98.5% Midtown Manhattan, NY 100.0% 99.9% Baltimore, MD 99.3% 100.0% Princeton/East Brunswick, NJ 99.6% 99.5% Richmond, VA 99.7% 99.1% Greater San Francisco, CA 99.1% 96.5% Bucks County, PA 100.0% 100.0% ------------- ------------- Total Portfolio 98.7% 98.4% ============= ============= 18
31-MAR-00 31-MAR-99 --------- --------- Total Office Portfolio 99.5% 98.8% Total R&D Portfolio 94.0% 99.1% Total Industrial Portfolio 92.5% 89.3% ------------- ------------- Total Portfolio 98.7% 98.4% ============= ============= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE OFFICE PROPERTIES LEASE EXPIRATIONS OCCUPANCY BY LOCATION
ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING - ---------- ----------------- --------------- -------------------- -------------------- 2000 960,200 $ 27,340,642 $ 27,344,939 5.55% 2001 2,266,364 69,079,420 69,534,189 10.97% 2002 2,073,891 80,185,076 80,878,369 9.90% 2003 1,826,513 56,354,940 57,743,122 8.29% 2004 2,582,784 87,609,676 91,350,786 11.68% 2005 1,722,555 50,446,124 54,128,258 6.64% 2006 2,723,204 88,695,125 97,052,358 12.25% 2007 1,652,453 67,381,684 69,039,788 7.37% 2008 872,797 30,412,206 28,455,992 4.03% 2009 1,720,115 55,628,093 63,663,808 8.25% Thereafter 3,724,851 113,688,281 136,408,677 15.07% 19
31-MAR-00 31-MAR-99 --------- --------- Greater Boston, MA 99.2% 98.5% Greater Washington, D.C. 98.4% 98.5% Midtown Manhattan, NY 100.0% 99.9% Baltimore, MD 99.3% 100.0% Richmond, VA 99.7% 99.1% Princeton/East Brunswick, NJ 99.7% 99.5% Greater San Francisco, CA 98.9% 96.7% Bucks County, PA n/a n/a --------- --------- Total Office Portfolio 99.1% 98.5% ========= ========= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE R&D PROPERTIES LEASE EXPIRATIONS OCCUPANCY BY LOCATION
ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER EAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING - ---------- ----------------- --------------- -------------------- -------------------- 2000 255,262 $ 2,691,224 $ 2,691,224 13.12% 2001 287,074 3,561,337 3,609,481 14.76% 2002 352,246 4,926,617 5,060,689 18.11% 2003 95,307 1,183,957 1,259,539 4.90% 2004 84,881 1,184,285 1,311,777 4.36% 2005 164,149 1,948,603 2,108,130 8.44% 2006 203,000 2,283,339 2,395,839 10.44% 2007 157,895 2,758,770 3,004,946 8.12% 2008 - - - 0.00% 2009 59,838 770,707 981,557 3.08% Thereafter 285,371 4,896,006 5,841,712 14.67% 20
31-MAR-00 31-MAR-99 --------- --------- Greater Boston, MA 100.0% 100.0% Greater Washington, D.C. 91.2% 98.8% 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 97.6% 99.0% Bucks County, PA n/a n/a ------- ------- Total R&D Portfolio 94.0% 99.1% ======= ======= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE INDUSTRIAL PROPERTIES LEASE EXPIRATIONS OCCUPANCY BY LOCATION
ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ---------- ----------------- --------------- -------------------- -------------------- 2000 255,405 $ 1,424,211 $ 1,424,211 29.82% 2001 70,829 381,905 381,905 8.27% 2002 23,904 207,563 207,563 2.79% 2003 147,305 989,907 1,053,959 17.20% 2004 235,076 1,363,056 1,456,556 27.44% 2005 20,500 125,698 140,832 2.39% 2006 - - - 0.00% 2007 20,000 222,456 258,783 2.33% 2008 83,608 736,586 809,782 9.76% 2009 - - - 0.00% Thereafter - - - 0.00% 21
31-MAR-00 31-MAR-99 --------- --------- Greater Boston, MA 93.0% 93.0% Greater Washington, D.C. 78.2% 73.9% 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 100.0% 92.9% Bucks County, PA 100.0% 100.0% ------- ------- Total Industrial Portfolio 92.5% 89.3% ======= ======= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES LEASE EXPIRATION OCCUPANCY BY LOCATION
ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING ---------- ----------------- --------------- -------------------- -------------------- 2000 1,470,867 $ 31,456,077 $ 31,460,374 5.90% 2001 2,624,267 73,022,662 73,525,575 10.53% 2002 2,450,041 85,319,256 86,146,621 9.83% 2003 2,069,125 58,528,804 60,056,620 8.30% 2004 2,902,741 90,157,017 94,119,119 11.64% 2005 1,907,204 52,520,425 56,377,220 7.65% 2006 2,926,204 90,978,464 99,448,197 11.74% 2007 1,830,348 70,362,910 72,303,517 7.34% 2008 956,405 31,148,792 29,265,774 3.84% 2009 1,779,953 56,398,800 64,645,365 7.14% Thereafter 4,010,222 118,584,287 142,250,389 16.09% 22
31-MAR-00 31-MAR-99 --------- --------- Greater Boston, MA 99.0% 98.4% Greater Washington, D.C. 96.3% 97.7% Midtown Manhattan, NY 100.0% 99.9% Baltimore, MD 99.3% 100.0% Richmond, VA 99.7% 99.1% Princeton/East Brunswick, NJ 99.7% 99.5% Greater San Francisco, CA 99.0% 96.5% Bucks County, PA 100.0% 100.0% -------- -------- Total Portfolio 98.5% 98.2% ======== ======== BOSTON PROPERTIES, INC. FIRST QUARTER 2000 GREATER BOSTON 23
OFFICE ----------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ---------------- --------------- -------------------- 2000 317,779 $ 8,999,934 $ 8,999,934 2001 711,307 18,087,072 18,363,126 2002 403,250 10,808,348 10,882,128 2003 560,130 14,877,308 15,505,549 2004 756,296 26,274,690 28,573,681 2005 613,078 17,839,888 18,444,436 2006 452,640 13,699,199 15,440,853 2007 159,431 5,057,924 5,644,368 2008 5,466 404,977 404,977 2009 846,776 26,345,748 30,339,370 Thereafter 486,825 10,136,550 13,963,559 R&D ------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 80,000 $ 859,790 $ 859,790 2001 - - - 2002 94,140 877,197 892,197 2003 50,704 581,128 581,128 2004 - - - 2005 - - - 2006 203,000 2,283,339 2,395,839 2007 50,000 475,008 675,000 2008 - - - 2009 - - - Thereafter 67,362 1,295,391 1,601,888 INDUSTRIAL ---------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------- --------------- -------------------- 2000 67,216 $ 639,711 $ 639,711 2001 10,829 127,969 127,969 2002 23,904 207,563 207,563 2003 128,105 861,075 925,127 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE GREATER WASHINGTON DC PROPERTIES LEASE EXPIRATIONS GREATER WASHINGTON 24
OFFICE ----------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ --------------- -------------------- 2000 196,310 $ 5,764,195 $ 5,768,492 2001 251,062 7,326,349 7,422,184 2002 241,016 6,444,055 6,756,672 2003 174,564 4,630,544 4,919,122 2004 532,422 17,239,633 18,153,128 2005 339,389 10,513,004 11,943,418 2006 775,418 30,662,583 33,298,107 2007 540,306 19,219,293 16,470,563 2008 371,451 15,014,727 11,647,965 2009 429,596 14,487,052 17,009,560 Thereafter 1,516,601 45,313,605 52,283,790 R&D ---------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 151,062 $ 1,613,506 $ 1,613,506 2001 252,377 3,136,871 3,177,668 2002 215,620 3,526,884 3,624,298 2003 23,439 295,229 347,548 2004 84,881 1,184,285 1,311,777 2005 148,330 1,772,104 1,881,250 2006 - - - 2007 107,895 2,283,762 2,329,946 2008 - - - 2009 59,838 770,707 981,557 Thereafter 218,009 3,600,615 4,239,824 INDUSTRIAL --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ----------------- --------------- -------------------- 2000 27,189 $ 172,700 $ 172,700 2001 - - - 2002 - - - 2003 19,200 128,832 128,832 2004 34,863 228,725 245,374 2005 20,500 125,698 140,832 2006 - - - 2007 - - - 2008 83,608 736,586 809,782 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES LEASE EXPIRATIONS GREATER SAN FRANCISCO 25
OFFICE ------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2000 134,270 $ 3,790,904 $ 3,790,904 2001 596,051 21,236,487 21,269,847 2002 317,687 10,887,861 11,008,356 2003 588,506 22,384,350 22,588,714 2004 753,119 30,360,479 30,614,710 2005 271,774 9,788,245 10,298,771 2006 750,087 24,711,142 26,719,310 2007 336,188 12,224,079 12,953,138 2008 173,286 6,418,848 6,450,560 2009 271,610 10,179,704 10,627,356 Thereafter 100,621 4,990,191 5,362,225 R&D ------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2000 24,200 $ 217,928 $ 217,928 2001 34,697 424,465 431,813 2002 42,486 522,535 544,194 2003 21,164 307,531 330,863 2004 - - - 2005 15,819 176,499 226,880 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - INDUSTRIAL ------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2000 - $ - $ - 2001 60,000 253,936 253,936 2002 - - - 2003 - - - 2004 200,213 1,134,331 1,211,182 2005 - - - 2006 - - - 2007 20,000 222,456 258,783 2008 - - - 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE NEW YORK PROPERTIES LEASE EXPIRATIONS MID-TOWN MANHATTAN 26
OFFICE ---------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 20,947 $ 1,274,083 $ 1,274,083 2001 129,091 6,882,407 6,902,469 2002 900,104 47,158,597 47,271,041 2003 191,631 7,497,312 7,547,672 2004 16,525 895,043 959,076 2005 55,239 2,513,033 2,690,599 2006 25,440 1,071,777 1,175,591 2007 561,948 28,985,091 31,974,155 2008 118,081 5,037,421 5,572,477 2009 39,381 2,250,721 2,595,288 Thereafter 782,338 34,651,743 43,471,137 R&D ------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ----------------- ------------------ -------------------- 2000 - $ - $ - 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - INDUSTRIAL -------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ----------------- ------------------ -------------------- 2000 - $ - $ - 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE NEW JERSEY PROPERTIES LEASE EXPIRATIONS GREATER NEW JERSEY 27
OFFICE ------------------------------------------------------------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 257,849 $ 6,744,790 $ 6,744,790 2001 422,977 12,014,688 12,016,045 2002 30,959 861,177 847,347 2003 127,634 3,241,417 3,296,203 2004 404,428 10,384,131 10,395,684 2005 123,850 2,708,123 3,087,129 2006 40,381 1,101,122 1,184,124 2007 12,171 365,130 377,301 2008 15,243 407,780 445,887 2009 14,515 371,040 426,065 Thereafter 824,909 18,454,462 21,186,237 R&D -------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 - $ - $ - 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - INDUSTRIAL ------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ---------- ------------------ ------------------ -------------------- 2000 - $ - $ - 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 IN-SERVICE OTHER PROPERTIES LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND VA, BALTIMORE MD, BUCKS COUNTY, PA) 28
OFFICE --------------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ --------------- -------------------- 2000 33,045 $ 766,735 $ 766,735 2001 155,876 3,532,417 3,560,519 2002 180,875 4,025,038 4,112,825 2003 184,048 3,724,009 3,885,863 2004 119,994 2,455,700 2,654,508 2005 319,495 7,083,831 7,663,905 2006 679,238 17,449,302 19,234,373 2007 42,409 1,530,167 1,620,245 2008 189,270 3,128,454 3,934,126 2009 118,237 1,993,827 2,666,169 Thereafter 13,557 141,729 141,729 R&D -------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2000 - $ - $ - 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - INDUSTRIAL ------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2000 161,000 $ 611,800 $ 611,800 2001 - - - 2002 - - - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - Thereafter - - - BOSTON PROPERTIES, INC. FIRST QUARTER 2000 HOTEL PERFORMANCE SAME PROPERTY HOTELS LONG WHARF MARRIOTT - BOSTON CAMBRIDGE CENTER MARRIOTT
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 86.80% 85.60% 1.4% 86.80% 85.60% 1.4% Average Daily Rate $ 200.95 $ 189.10 6.3% $ 200.95 $ 189.10 6.3% REVPAR $ 174.42 $ 161.79 7.8% $ 174.42 $ 161.79 7.8% TOTAL SAME PROPERTY HOTEL PERFORMANCE
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 81.40% 82.80% -1.7% 81.40% 82.80% -1.7% Average Daily Rate $ 174.05 $ 158.79 9.6% $ 174.05 $ 158.79 9.6% REVPAR $ 141.68 $ 131.48 7.8% $ 141.68 $ 131.48 7.8% 1999 PLACED-IN-SERVICE HOTEL RESIDENCE INN BY MARRIOTT
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 84.00% 84.20% -0.2% 84.00% 84.20% -0.2% Average Daily Rate $ 187.03 $ 173.37 7.9% $ 187.03 $ 173.37 7.9% REVPAR $ 157.48 $ 146.11 7.8% $ 157.48 $ 146.11 7.8% * Only Operational as of 2/01/99 29
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT 2000 1999 CHANGE 2000 1999 CHANGE ---- ---- ------ ---- ---- ------ Occupancy 88.70% 67.40% N/A 88.70% 64.70% N/A Average Daily Rate $ 144.00 $ 134.18 N/A $ 144.00 $ 134.18 N/A REVPAR $ 127.73 $ 90.44 N/A $ 127.73 $ 90.44 N/A BOSTON PROPERTIES, INC. FIRST QUARTER 2000 SAME PROPERTY PERFORMANCE OFFICE, R&D, INDUSTRIAL AND HOTEL PROPERTIES SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED MARCH 31, 2000
OFFICE R&D INDUSTRIAL HOTEL GARAGE TOTAL ------ --- ---------- ----- ------ ----- Number of Properties 71 32 9 2 1 115 Square feet 19,332,388 2,072,497 925,726 750,400 332,442 23,413,453 Percent of in-service properties 85.7% 100.0% 100.0% 80.0% 100% 87.2% Occupancy @ 03/31/99 98.8% 99.1% 89.3% - - 98.4% Occupancy @ 03/31/00 99.5% 94.0% 92.5% - - 98.7% Percent change from 1st quarter 2000 over 1st quarter 1999: Revenue 5.3% 2.5% 12.5% 14.0% 28.7% 5.6% Expense 5.7% -7.0% 16.1% 4.5% 10.7% 5.4% Net Operating Income 5.1% 5.5% 11.2% 16.8% 38.9% 5.6% (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.) 30
OFFICE R&D INDUSTRIAL TOTAL ------ --- ---------- ----- Vacant space available @ 1/01/00 (sf) 360,902 144,545 89,099 594,546 Square footage of leases expiring or terminated 01/01/00-03/31/00 1,012,850 235,859 - 1,248,709 --------- -------- ------- --------- Total space for lease (sf) 1,373,752 380,404 89,099 1,843,255 ========= ======== ======= ========= New tenants (sf) 772,603 167,459 20,000 960,062 Renewals (sf) 509,930 87,971 - 597,901 --------- ------- ------- --------- Total space leased (sf) 1,282,533 255,430 20,000 1,557,963 ========= ======== ======= ========= Space available @ 3/31/00 (sf) 91,219 124,974 69,099 285,292 ========= ======== ======= ========= Net increase (decrease) in leased space (sf) 269,683 19,571 20,000 309,254 Average lease term (months) 93 47 74 85 2nd generation TI/Comm PSF $ 12.12 $ 0.71 $ 11.04 $ 10.23 Increase in 2nd generation net rents (1) 50.6% 6.3% n/a 46.9% BOSTON PROPERTIES, INC. FIRST QUARTER 2000 ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED MARCH 31,2000 (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). 31
OFFICE R&D INDUSTRIAL TOTAL ------ --- ---------- ----- Vacant space available @ 1/01/00 (sf) 508,964 144,545 89,099 742,608 Square footage of leases expiring or terminated 1/01/00-3/31/00 1,070,356 235,859 - 1,306,215 ------------ ------------- ------------ ------------ Total space for lease (sf) 1,579,320 380,404 89,099 2,048,823 ============ ============= ============ ============ New tenants (sf) 852,455 167,459 20,000 1,039,914 Renewals (sf) 532,149 87,971 - 620,120 ------------ ------------- ------------ ------------ Total space leased (sf) 1,384,604 255,430 20,000 1,660,034 ============ ============= ============ ============ Space available @ 3/31/00 (sf) 194,716 124,974 69,099 388,789 ============ ============= ============ ============ Net increase/(decrease) in leased space (sf) 314,248 19,571 20,000 353,819 Average lease term (months) 92 47 74 78 2nd generation TI/Comm PSF $ 12.38 $ 0.71 $ 11.04 $ 10.57 Increase in 2nd generation net rents (1) 52.2% 6.3% n/a 48.4% BOSTON PROPERTIES, INC. FIRST QUARTER 2000 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS (IN THOUSANDS) HISTORICAL CAPITAL EXPENDITURES 2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
1995 1996 1997 1998 1999 Q1 2000 ---- ---- ---- ---- ---- ------- Recurring capital expenditures $ 1,618 $ 1,083 $ 1,125 $ 3,543 $ 11,611 $ 1,995 ============ =========== ============ ========== ============ ============ Hotel improvements, equipment upgrades $ 4,420 $ 3,041 $ 2,625 $ 3,872 $ 2,346 $ 789 ============ =========== ============ ========== ============ ============ and replacements 32
1995 1996 1997 1998 1999 Q1 2000 ---- ---- ---- ---- ---- ------- Office Square feet 768,459 970,072 1,016,427 648,291 2,115,281 1,384,604 ------- ------- --------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $ 10.66 $ 11.40 $ 10.83 $ 9.82 $ 10.60 $ 12.38 ------- ------- --------- ------- --------- --------- R&D Square feet 177,073 337,676 169,878 113,428 167,231 255,430 ------- ------- --------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $ 6.99 $ 10.45 $ 2.22 $ 3.32 $ 1.94 $ 0.71 ------- ------- --------- ------- --------- --------- Industrial Square feet 308,388 128,148 258,795 320,608 163,962 20,000 ------- ------- --------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $ 1.00 $ 1.71 $ 0.99 $ 1.13 $ 0.60 $ 11.04 ------- ------- --------- ------- --------- --------- Average tenant improvement and lease commission p.s.f. $ 7.77 $ 10.31 $ 8.06 $ 6.57 $ 9.34 $ 10.57 ======= ======= ========= ======= ========= ========= BOSTON PROPERTIES, INC. FIRST QUARTER 2000 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS AS OF MARCH 31, 2000 ACQUISITIONS DISPOSITIONS
ANTICIPATED INITIAL FUTURE TOTAL CURRENT PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY -------- ------------- ----------- ---------- ---------- ---------- --------- ACQUISITIONS CLASS A OFFICE BUILDINGS One and Two Reston Overlook Jan-00 444,286 $ 15,200,000 $ - $ 15,200,000 (1) 100% 504, 506, 508 Carnegie Center Mar-00 408,163 66,500,000 - 66,500,000 100% ------------- --------------- ------------- -------------- ---------- TOTAL VALUE CREATION PIPELINE - 852,449 $ 81,700,000 $ - $ 81,700,000 100% ACQUISITIONS ============= =============== ============= ============== ========== (1) Represents the acquisition of the joint venture partner's 75% interest. 33
CLOSING NET PROPERTY DATE DISPOSED SQUARE FEET SALE PRICE COSTS BOOK VALUE GAIN - -------- ------------- ----------- ---------- ----- ---------- ---- NO ACTIVITY BOSTON PROPERTIES, INC. FIRST QUARTER 2000 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS AS OF MARCH 31, 2000 DEVELOPMENTS PLACED-IN-SERVICE DURING 2000
# OF DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION BUILDINGS - ---------------------- ----------------- ------------------ -------- --------- CLASS A OFFICE BUILDINGS Market Square North (50% ownership) Q1 2000 Q4 2000 Washington, DC 1 Orbital Sciences Phase I - Building 1 & 3 Q2 2000 Q2 2000 Dulles, VA 2 New Dominion Tech Park - Building 1 Q4 2000 Q4 2000 Herndon, VA 1 302 Carnegie Center Q4 2000 Q2 2001 Princeton, NJ 1 2600 Tower Oaks Boulevard Q4 2000 Q3 2001 Rockville, MD 1 140 Kendrick Street Q1 2001 Q1 2001 Needham, MA 3 Orbital Sciences Phase II - Building 2 Q2 2001 Q2 2001 Dulles, VA 1 111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1 5 Times Square Q4 2001 Q2 2002 New York, NY 1 -------- TOTAL DEVELOPMENT PROPERTIES 12 ======== ANTICIPATED CURRENT INVESTMENT TOTAL PERCENTAGE DEVELOPMENT PROPERTIES SQUARE FEET TO DATE INVESTMENT LEASED - ---------------------- ----------- ------- ---------- ------ CLASS A OFFICE BUILDINGS Market Square North (50% ownership) 409,843 $ 47,332,951 $ 61,631,239 (1) 87% Orbital Sciences Phase I - Building 1 & 3 174,832 23,535,844 33,100,000 100% New Dominion Tech Park - Building 1 235,201 18,656,698 48,800,000 100% 302 Carnegie Center 64,565 4,385,684 12,900,000 0% 2600 Tower Oaks Boulevard 178,216 7,369,012 38,295,000 20% 140 Kendrick Street 381,000 45,416,596 80,856,000 (2) 100% Orbital Sciences Phase II - Building 2 160,502 3,576,929 28,018,000 100% 111 Huntington Avenue - Prudential Center 890,000 93,395,401 290,000,000 32% 5 Times Square 1,099,154 206,015,236 536,100,000 100% ------------- ------------------ ------------------ ----------- TOTAL DEVELOPMENT PROPERTIES 3,593,313 $ 449,684,351 $ 1,129,700,239 76% ============= ================== ================== =========== (1) Represents 50% of the total anticipated project-level investment. #REF! (2) Net of tenant work paid by the developer until completion that is estimated to be $16.4 million. 34
PLACED # OF INVESTMENT IN SERVICE DATE LOCATION BUILDINGS SQUARE FEET TO DATE --------------- -------- --------- ----------- ------- NO DEVELOPMENT PROPERTIES PLACED IN SERVICE DURING THIS PERIOD TOTAL PERCENTAGE INVESTMENT LEASED ---------- ------ NO DEVELOPMENT PROPERTIES PLACED IN SERVICE DURING THIS PERIOD BOSTON PROPERTIES, INC. FIRST QUARTER 2000 VALUE CREATION PIPELINE - OWNED LAND PARCELS AS OF MARCH 31, 2000 (1) Boston Properties has a 50% ownership interest. (2) Includes 254,000 square feet of building on a 7.5 acre parcel under a ground lease to a third party. VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS AS OF MARCH 31, 2000
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET - -------- ------- ------- ----------- S. San Francisco, CA 2 3.6 376,425 Andover, MA 2 19.9 230,000 Boston, MA (1) 4 2.5 839,000 Waltham, MA 2 32.0 418,000 Rockville, MD (2) 6 111.5 1,378,216 Dulles, VA 2 91.0 1,061,500 Herndon, VA 2 25.2 370,200 Reston, VA 2 5.5 775,000 Gaithersburg, MD 2 27.0 600,000 Springfield, VA 3 9.4 130,000 ---------- ----------- ------------ 27 327.6 6,178,341 ========== =========== ============ (1) $20.00/FAR plus an earnout calulation. (2) Prior to January 23, 2001 the cost would be $25.02/ SF of land area then $25.92/ SF of land area prior to January 23, 2002. Land area is approximately 108,000 SF. (3) $159.75 million for both leasehold interest and ESAC credits. (4) $11.54/RSF plus an earnout calculation. Purchase subject to receiving all necessary permits and approvals. (5) $ 26.3 million subject to receiving all necessary permits and approvals. 35
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET - -------- ------- ------- ----------- Princeton, NJ (1) 14 149.9 1,921,335 Cambridge, MA (2) 1 2.6 165,500 New York, NY (3) 1 0.5 1,194,918 Chelmsford, MA (4) 1 26.0 259,918 San Jose, CA (5) 5 3.7 795,000 ---------- ----------- ------------ 22 182.7 4,336,671 ========== =========== ============ BOSTON PROPERTIES, INC. FIRST QUARTER 2000 ACQUISITION PROPERTY PROFILE (1) Represents the acquisition of the joint venture partner's 75% interest. 36
PROPERTY NAME: One and Two Reston Overlook PRODUCT TYPE: Two Class A Office Buildings LOCATION: Reston, Virginia DESCRIPTION: Class A Office Space SIZE: 444,286 net rentable square feet YEAR CONSTRUCTED: 1999 PURCHASE PRICE: $15.2 million (1) CLOSING DATE: January 12, 2000 FUTURE INVESTMENT: $ - OCCUPANCY LEVEL: 100% NUMBER OF TENANTS: Eight FUNDING SOURCE: Cash and assumption of mortgage debt LARGEST TENANT: COMPANY: TRW SIZE: 309,689 LEASE EXPIRATION: 01/2011 BOSTON PROPERTIES, INC. FIRST QUARTER 2000 ACQUISITION PROPERTY PROFILE 37
PROPERTY NAME: 504, 506, 508 Carnegie Center PRODUCT TYPE: Three Class A Office Buildings LOCATION: Carnegie Center, Princeton, NJ DESCRIPTION: Class A Office Space SIZE: 408,163 net rentable square feet YEAR CONSTRUCTED: 1991 PURCHASE PRICE: $66.5 million CLOSING DATE: March 1, 2000 FUTURE INVESTMENT: $ - OCCUPANCY LEVEL: 100% NUMBER OF TENANTS: Three FUNDING SOURCE: Assumption of mortgage debt of $49.0 million and the issuance of 577,817 common units of the operating partnership LARGEST TENANT: COMPANY: Raytheon SIZE: 131,085 LEASE EXPIRATION: 03/2011 Raytheon 108,184 10/2013
Exhibit 99.2 BOSTON PROPERTIES, INC. 800 BOYLSTON STREET, SUITE 400 BOSTON, MA 02199 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD Elaine Quinlan Marilynn Meek - General Info. (212) 661-8030 Investor Relations Claire Koeneman - Analyst (312) 266-7800 (617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030 BOSTON PROPERTIES, INC. ANNOUNCES FIRST QUARTER 2000 RESULTS REPORTS FFO PER SHARE OF $0.78 BOSTON, MA, APRIL 25, 2000 - Boston Properties, Inc. (NYSE: BXP) today reported results for the first quarter ended March 31, 2000. Funds from Operations (FFO) for the quarter ended March 31, 2000 were $54.6 million, or $0.80 per share basic and $0.78 per share diluted, compared to FFO of $45.7 million, or $0.72 per share basic and $0.70 per share diluted for the quarter ended March 31, 1999. This represents 11.4% year to year increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 67,942,675 and 81,380,969, respectively, for the quarter ended March 31, 2000 and 63,533,638 and 75,862,001, respectively, for the same quarter last year. Revenues were $210.3 million for the quarter ended March 31, 2000, compared to revenues of $187.6 million for the same period in 1999. Net income available to common shareholders for the quarter ended March 31, 2000 was $31.0 million, compared to $24.9 million for the same period in 1999. Net income per share available to common shareholders for the quarter ended March 31, 2000 was $0.46 per share basic and $0.45 per share diluted, compared to $0.39 per share basic and diluted for the same period 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, 2000. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. As of March 31, 2000, the Company's portfolio consisted of 139 properties comprising more than 36.0 million square feet, including 12 properties under development totaling 3.6 million square feet. The overall occupancy rate for the properties in service as of March 31, 2000 was 98.5%. -MORE- Additional highlights of the first quarter include: - - The acquisition of the Company's joint venture partner's 75% interest in One and Two Reston Overlook in Reston, Virginia on January 12, 2000 for cash of approximately $15.2 million. - - The closing of construction financing totaling $420.0 million collateralized by the Five Times Square development project in New York City. Such financing bears interest at a rate equal to LIBOR + 2.00% and matures in January 2003. - - The entering into of three interest rate hedge agreements with a major financial institution for a total of $450.0 million. - - The acquisition of three Class A office buildings totaling approximately 408,000 square feet at Carnegie Center in Princeton, New Jersey, on March 1, 2000, under terms of the original Carnegie Center contribution agreement dated June 30, 1998. The properties are located within the existing Carnegie Center Portfolio. The properties were acquired from a related party for approximately $66.5 million, which was funded through the assumption of debt of approximately $49.0 million at a rate of 7.39% and the issuance of 577,817 common units of partnership interest in the operating partnership valued at approximately $17.5 million. The acquisition was approved by a vote of the independent directors of the Company. - - The closing of construction financing totaling $10.0 million collateralized by the 302 Carnegie Center development project in Princeton, New Jersey. Such financing bears interest at a rate equal to LIBOR + 1.90% and matures in March 2003. - - The acquisition of an 8.9-acre site in Herndon, Virginia for approximately $3.2 million on March 23, 2000. The site will support approximately 135,000 square feet of development. - - The amendment and restatement of the Company's $500.0 million unsecured line of credit agreement extending the term to March 2003. Transactions completed subsequent to March 31, 2000: - - The refinancing of the mortgage loan on Ten Cambridge Center and the North Garage which consisted of replacing the $40.0 million mortgage loan with a $36.0 million loan and removing the North Garage as collateral. The new financing bears interest at a rate equal to 8.27% and matures in April 2010. -MORE- - - The closing of construction financing totaling $32.0 million collateralized by the 2600 Tower Oaks Boulevard development project in Rockville, Maryland. Such financing bears interest at a rate equal to LIBOR + 1.90% and matures in October 2002. - - The refinancing of the mortgage loan on Metropolitan Square which consisted of replacing the $104.0 million mortgage loan with a $140.0 million loan. The new financing bears interest at a rate equal to 8.23% and matures in April 2010. - - The closing of construction financing totaling $78.0 million collateralized by the 140 Kendrick Street development project in Needham, Massachusetts. Such financing matures in July 2002 and consists of two tranches: $16.4 million bearing interest at a rate of LIBOR + 1.35% and $61.6 million bearing interest at a rate of LIBOR + 1.65%. 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, industrial and hotel properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in the Northeast Corridor from Virginia to Greater Boston and in Greater San Francisco. 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. THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE FEDERAL SECURITIES LAWS. 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, REGULATORY CHANGES AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM TIME TO TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. Financial tables follow. BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited and in thousands, except for per share amounts)
Three months ended March 31, ---------------------------- 2000 1999 ---------- --------- Revenue Rental: Base rent $170,337 $151,609 Recoveries from tenants 23,336 17,414 Parking and other 13,008 10,924 -------- -------- Total rental revenue 206,681 179,947 Development and management services 2,863 4,047 Interest and other 710 3,646 -------- -------- Total revenue 210,254 187,640 -------- -------- Expenses Operating 65,177 57,350 General and administrative 7,408 6,610 Interest 55,215 50,459 Depreciation and amortization 32,231 27,794 -------- -------- Total expenses 160,031 142,213 -------- -------- Income before minority interests and joint venture income 50,223 45,427 Minority interests in property partnerships (196) (4,155) Income from unconsolidated joint ventures 145 213 -------- -------- Income before minority interest in Operating Partnership 50,172 41,485 Minority interest in Operating Partnership (17,552) (15,712) -------- -------- Net income before preferred dividend 32,620 25,773 Preferred dividend (1,643) (839) -------- -------- Net income available to common shareholders $ 30,977 $ 24,934 ======== ======== Basic earnings per share: Net income available to common shareholders $ 0.46 $ 0.39 ======== ======== Weighted average number of common shares outstanding 67,943 63,534 ======== ======== Diluted earnings per share: Net income available to common shareholders $ 0.45 $ 0.39 ======== ======== Weighted average number of common and common equivalent shares outstanding 68,380 64,078 ======== ======== BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share amounts)
MARCH 31, DECEMBER 31, 2000 1999 ----------- ------------ (UNAUDITED) ASSETS Real estate: $ 5,848,141 $ 5,612,258 Less: accumulated depreciation (501,554) (470,591) ----------- ----------- Total real estate 5,346,587 5,141,667 Cash and cash equivalents 18,335 12,035 Escrows 30,085 40,254 Investment in securities 73,023 14,460 Tenant and other receivables, net 34,539 28,362 Accrued rental income, net 85,089 82,228 Deferred charges, net 67,711 50,899 Prepaid expenses and other assets 24,407 28,452 Investments in joint ventures 36,541 36,415 ----------- ----------- Total assets $ 5,716,317 $ 5,434,772 =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes payable $ 3,186,399 $ 2,955,584 Unsecured line of credit 344,000 366,000 Accounts payable and accrued expenses 57,098 66,780 Dividends and distributions payable 51,205 50,114 Accrued interest payable 5,154 8,486 Other liabilities 55,553 48,282 ----------- ----------- Total liabilities 3,699,409 3,495,246 ----------- ----------- Commitments and contingencies - - ----------- ----------- Minority interests 808,826 781,962 ----------- ----------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 ----------- ----------- 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, 67,954,225 and 67,910,434 issued and outstanding in 2000 and 1999, respectively 680 679 Additional paid-in capital 1,060,341 1,067,778 Dividends in excess of earnings (10,495) (10,893) Deferred compensation (1,007) - Accumulated other comprehensive income 58,563 - ----------- ----------- Total stockholders' equity 1,108,082 1,057,564 ----------- ----------- Total liabilities and stockholders' equity $ 5,716,317 $ 5,434,772 =========== =========== BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED MARCH 31, -------------------------- 2000 1999 -------- -------- Income before minority interests and joint venture income $ 50,223 $ 45,427 Add: Real estate depreciation and amortization 32,052 27,549 Income from unconsolidated joint ventures 145 213 Less: Minority property partnership's share of Funds from Operations (224) (3,163) Preferred dividends and distributions (8,250) (7,212) -------- -------- Funds from operations $ 73,946 $ 62,814 ======== ======== Funds from operations available to common shareholders $ 54,641 $ 45,697 ======== ======== Weighted average shares outstanding - basic 67,943 63,534 ======== ======== Per share - basic $ 0.80 $ 0.72 ======== ======== Weighted average shares outstanding - diluted 81,381 75,862 ======== ======== Per share - diluted $ 0.78 $ 0.70 ======== ======== BOSTON PROPERTIES, INC. PORTFOLIO OCCUPANCY
Occupancy by Location ----------------------------------------------- March 31, 2000 December 31, 1999 -------------- ----------------- Greater Boston 99.0% 96.7% Greater Washington, D.C. 96.3% 96.4% Midtown Manhattan 100.0% 97.8% Baltimore, MD 99.3% 99.7% Richmond, VA 99.7% 98.0% Princeton/East Brunswick, NJ 99.7% 98.9% Greater San Francisco 99.0% 96.4% Bucks County, PA 100.0% 100.0% ----- ----- Total Portfolio 98.5% 97.1% ===== ===== Occupancy by Type ----------------------------------------------- March 31, 2000 December 31, 1999 -------------- ----------------- Class A Office Portfolio 99.1% 97.7% R&D Portfolio 94.0% 93.0% Industrial Portfolio 92.5% 90.4% ----- ----- Total Portfolio 98.5% 97.1% ===== =====