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): June 6, 2001 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 In connection with certain investor presentations from June 6 through June 8, 2001, Boston Properties, Inc. will be using the information attached as Exhibit 99.1 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. investor presentation slides used from June 6 through June 8, 2001.
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: June 6, 2001 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde -------------------------------- By: Douglas T. Linde Chief Financial Officer
EXHIBIT 99.1 Focused CBD Portfolio Proforma NOI After Completion of developments Underway As of March 31, 2001 (including proforma Citigroup transaction) Suburban 27% CBD 73%
Portfolio Composition by Region - (1)Includes Citigroup Center NOI at IPO NOI at 3/31/01(1) Proforma NOI (1) at 3/31/01 - ---------- ----------------- --------------------------- Greater San Francisco 1% Greater Boston 23% including development Underway Greater Boston 36% Greater Washington, DC 20% ------------------------------ Greater Washington, DC 38% New York 23% Greater Boston 23% New York 25% Greater San Francisco 21% Greater Washington, DC 18% Princeton 7% New York 33% Other 6% Greater San Francisco 17% Princeton 5% other 4%
Citigroup Center *Irreplaceable Asset and Location, Near-Term Protection and Long-Term Upside *1.6.m square feet *Average rent excluding Citigroup is 400,000 SF is approximately $56 SF compared to today's market
[LOGO OF BOSTON PROPERTIES] Citigroup Deal Structure -------------------------- . BXP receives 100% of the cash flow for the first 10 years . $195m investment earns a 10% cumulative preferred return . Initial levered returns on BXP'S $195m Investment: 2002 2003 2004 ---- ---- ---- NOI (cash) 9.6% 10.2% 10.9% FFO (GAAP) 11.7% 12.0% 12.3% . Capital Structure: Asset purchase price $725m Closing costs 12m --- Unleveraged investment 737m Mortgage recording tax and loan fees 18m --- $755m Mortgage 525m ---- Leveraged investment 230m Allied Partners investment 35m --- BXP investment $195m $128.5m - preferred equity $66.5m - common equity
[LOGO OF BOSTON PROPERTIES] Strong Tenant Base ------------------ Tenant Sq. Ft. % of Portfolio - -------------------------------------------------------------------------------- 1 U.S. Government 2,290,037 7.293 2 Ernst & Young 1,062,203 3.383 3 Lockheed Martin Corporation 716,653 2.282 4 Citibank, N.A. 639,971 2.038 5 Arthur Andersen, LLP 620,947 1.978 6 Gillette Company 488,177 1.555 7 Washington Group International 473,429 1.508 8 Shearman & Sterling 435,496 1.387 9 Parametric Technology Corp. 380,987 1.213 10 Marsh & McLennan, Inc. 348,137 1.109 11 Orbital Sciences Corporation 337,228 1.074 12 Hunton & Williams 322,829 1.028 13 TRW, Inc. 317,921 1.012 14 First Union 311,695 0.993 15 Debevoise & Plimpton 307,125 0.978 16 T. Rowe Price Associates, Inc. 304,129 0.969 17 Accenture 265,622 0.846 18 Parexel International LLC 265,050 0.844 19 Credit Suisse First Boston 260,363 0.829 20 Tellabs Operations Inc. 259,918 0.828
In-Place Rents Dramatically Below Today's Market 3-Year Embedded growth of $63m Embedded growth of $275m or $2.20/share as of 3/31/01 2001 2002 2003 ---- ---- ---- Total SF Expiring 1,274,571 2,046,278 2,111,718 Office SF Expiring 946,082 1,650,178 1,774,552 Increase in gross rent: 2001 2002 2003 - ---------------------- ---- ---- ---- total sf expiring $11.9m $20.6m $30.9m office sf expiring $11.8m $19.8m $30.2m
[LOGO OF BOSTON PROPERTIES] Mark to Market - -------------------------------------------------------------------------------- Region 2001 2002 2003 3 Year Average ---- ---- ---- -------------- San Francisco Square Feet Expiring 125,557 285,566 631,705 Est. Market Rent $65.52 $63.86 $63.63 % Increase 66.33% 77.31% 57.11% 64% Boston Square Feet Expiring 478,672 279,522 509,407 Est. Market Rent $45.65 $39.90 $47.79 % Increase 56.84% 37.62% 53.83% 51% New York Square Feet Expiring 26,250 503,755 185,473 Est. Market Rent $60.00 $68.78 $69.84 % Increase 9.52% 24.68% 77.71% 38% Washington Square Feet Expiring 88,768 223,314 149,044 Est. Market Rent $36.40 $34.00 $28.55 % Increase 13.85% 18.82% 6.27% 14% Princeton Square Feet Expiring 172,413 23,591 122,308 Est. Market Rent $29.88 $29.93 $28.58 % Increase -3.41% 1.19% 4.41% 0% Other Square Feet Expiring 54,422 334,430 176,615 Est. Market Rent $23.28 $16.50 $28.04 % Increase 21.68% 15.07% 25.34% 19% Total Square Feet Expiring 946,082 1,650,178 1,774,552 Est. Market Rent $43.66 $47.18 $50.83 % Increase 39.87% 34.09% 50.32% 42%
[LOGO OF BOSTON PROPERTIES] Developments Underway ----------------------- Initial Stabilization Investment Total % DEVELOPMENT PROPERTIES Occupancy Date Square Feet to Date Investment Committed - ---------------------- --------- ---- ----------- ------- ---------- --------- Andover Office Park, Building 1 Q2 2001 Q2 2002 120,000 $ 12,808,622 $ 17,381,000 83% 2600 Tower Oaks Boulevard Q2 2001 Q2 2002 178,216 29,819,009 38,295,000 71% Orbital Sciences Phase II - Building 2 Q3 2001 Q3 2001 160,502 18,530,811 27,618,000 100% Quorum Office Park Q3 2001 Q4 2001 259,918 25,600,326 41,747,000 100% 111 H untington A venue - Prudential Center Q3 2001 Q4 2002 919,229 185,249,941 290,000,000 94% Broad Run Business Park- Building E Q4 2001 Q2 2002 124,650 8,218,634 19,946,000 0% One and Two Discovery Square (50% ownership) Q4 2001 Q4 2002 362,868 15,767,760 42,587,000 63% ITT Educational Services Q4 2001 Q4 2001 32,114 850,466 5,740,000 100% 5 Times Square Q1 2002 Q2 2002 1,099,154 318,535,081 536,115,000 100% Waltham Weston Corporate Center Q1 2002 Q1 2003 295,000 27,935,085 95,446,000 17% 611 Gateway Boulevard Q2 2002 Q3 2003 249,732 14,072,690 77,523,240 0% Two Freedom Square (50% ownership) Q3 2002 Q1 2003 417,113 12,011,636 49,336,000 55% Times Square Tower Q4 2003 Q2 2004 1,221,058 186,857,388 653,500,000 53% --------------------------------------------------------- Total Development Properties 5,439,554 $ 856,257,449 $1,895,234,240 71% . Expected average initial NOI and FFO returns of over 11% and 12.5%, respectively
[LOGO OF BOSTON PROPERTIES] Low Land Basis to Enhance Future Growth ----------------------------------------- APPROXIMATE INVESTMENT SQ FT INVESTMENT PSF ----------- ---------- ---------- LAND HELD FOR DEVELOPMENT 30 Shuttuck Road 110,000 1,042,045 $ 9.47 Broad Run Buildings C & D 210,500 1,788,967 $ 8.50 Broad Run Master Plan 726,500 4,287,171 $ 5.90 Cambridge Center Seven 165,000 4,179,736 $ 25.33 Crane Meadow 400,000 7,876,837 $ 19.69 Decoverly Four 100,000 1,794,460 $ 17.94 Decoverly Five 105,000 1,821,048 $ 17.34 681 Gateway 121,000 3,956,756 $ 32.70 Gateway Retail 8,000 193,790 $ 24.22 Herndon Lumber Site (Van Buren) 135,000 3,667,004 $ 27.16 New Dominion Tech Two 248,000 3,873,639 $ 15.62 Boylston Office Building 257,000 4,833,915 $ 18.81 Huntington Retail Parcel 52,217 1,473,834 $ 28.23 Boylston Residential Parcel 370,000 21,968,407 $ 59.37 12050 Sunset Hills Road 540,000 5,588,128 $ 10.35 12280 Sunrise Valley 180,000 3,902,491 $ 21.68 The Preserve at Tower Oaks MP 782,000 20,767,943 $ 26.56 Virginia Master Plan I 40,000 764,471 $ 19.11 Washingtonian North 209,000 5,466,963 $ 26.16 Washingtonian North 641,000 10,859,128 $ 16.94 77 4th Avenue 204,000 13,125,709 $ 64.34 ---------------------------------------------------- LAND HELD FOR DEVELOPMENT (BXP) 5,604,217 123,232,440 $ 21.99 ====================================================
Staggered Maturities - Balance at maturity (in millions) 86.99% of debt is fixed rate non-recourse mortgages 3.1x interest coverage ratio 2.3 capitalized interest ratio 2001 2002 2003 2004 2005 2006 2007 2008 2009 & Beyond ---- ---- ---- ---- ---- ---- ---- ---- ------------- $143 $331 $478 $154 $270 $276 $173 $998 $627