SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K/A AMENDMENT NO. 1 TO CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): OCTOBER 23, 2001 BOSTON PROPERTIES, INC. (Exact name of Registrant as specified in its charter) DELAWARE 1-13087 04-2473675 (State or other jurisdiction (Commission Fie (I.R.S. employer of incorporation) Number) Identification No.) 111 HUNTINGTON AVENUE BOSTON, MASSACHUSETTS 02199 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (617) 236-3300
Boston Properties, Inc. (the "Company") hereby amends its Current Report on Form 8-K dated October 23, 2001, filed with the Securities and Exchange Commission on October 23, 2001, to amend Item 7 to include the press release dated November 13, 2001 and to provide amended pages to the previously filed Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (c) Exhibits EXHIBIT NO. 99.1 Amended pages to the Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2001. 99.2 The Boston Properties, Inc. press release dated November 13, 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: November 13, 2001 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde -------------------------------------- By: Douglas T. Linde Chief Financial Officer
Exhibit 99.1 BOSTON PROPERTIES, INC. THIRD QUARTER 2001 FINANCIAL HIGHLIGHTS (unaudited and in thousands) THREE MONTHS ENDED ------------------------------------------------------------------------ SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 DECEMBER 31, 2000 ------------------ ------------- -------------- ----------------- INCOME ITEMS: Revenue (1) $ 277,159 $ 256,269 $ 233,456 $ 228,527 Net straight line rent $ 6,400 $ 6,487 $ 5,978 $ 2,608 Lease termination fees $ 4,857 $ 2,458 $ 1,163 $ 916 Capitalized interest $ 14,740 $ 15,800 $ 16,098 $ 12,812 Net Income available to common shareholders before net derivative losses (SFAS No.133) $ 65,083 $ 52,887 $ 48,058 $ 43,235 Funds from Operations (FFO) before net derivative losses (SFAS No.133) and early surrender income - basic $ 106,108 $ 100,124 $ 98,730 $ 93,158 Company's share $ 86,627 $ 81,410 $ 79,201 $ 71,888 FFO before net derivative losses (SFAS 133) and early surrender lease income per share - basic $ 0.96 $ 0.90 $ 0.89 $ 0.89 FFO before net derivative losses (SFAS 133) and early surrender lease income per share - diluted $ 0.91 $ 0.86 $ 0.85 $ 0.85 Dividends per share $ 0.58 $ 0.58 $ 0.53 $ 0.53 Funds available for distribution (FAD) (2) $ 73,157 $ 80,335 $ 78,835 $ 72,756 RATIOS: Interest Coverage Ratio (excluding capitalized interest) 3.17 2.98 3.26 3.05 Interest Coverage Ratio (including capitalized interest) 2.53 2.32 2.43 2.43 FFO Payout Ratio 63.74% 67.44% 62.35% 62.35% FAD Payout Ratio 88.01% 79.95% 74.36% 80.49% ------------------------------------------------------------------------ SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 DECEMBER 31, 2000 ------------------ ------------- -------------- ----------------- CAPITALIZATION: Total Debt $4,245,433 $4,177,670 $3,450,347 $3,414,891 Total Common Shares Outstanding @ Quarter End 90,720 90,351 89,701 86,630 Total Preferred Shares Outstanding @ Quarter End (if converted) 2,625 2,625 2,625 2,625 Total Common Units Outstanding @ Quarter End 20,288 20,382 20,903 23,862 Total Preferred Units Outstanding @ Quarter End (if converted) 11,011 11,011 11,011 11,021 Price @ Quarter End $ 38.1300 $ 40.9000 $ 38.4500 $ 43.5000 Equity Value @ Quarter End $4,752,676 $5,086,692 $4,777,028 $5,400,003 Total Market Capitalization $8,998,109 $9,264,362 $8,227,375 $8,814,894 Debt/Total Market Capitalization 47.18% 45.09% 41.94% 38.74% (1) Includes non-cash early surrender income of $12,445. (2) FAD is defined as FFO after adjustments for second generation lease commissions and tenant improvements, recurring capital expenditures, straight line rents, preferred dividends and distributions and nonrecurring charges.
BOSTON PROPERTIES, INC. THIRD QUARTER 2001 CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 DECEMBER 31, 2000 ------------------ --------------- ------------- ------------- ASSETS (unaudited) (unaudited) (unaudited) ------ Real estate $ 6,147,265 $ 6,090,113 $ 5,280,149 $ 5,188,296 Development in progress 984,962 915,135 881,274 817,478 Land held for future development 165,753 160,729 123,232 107,005 Less accumulated depreciation (683,029) (647,881) (616,620) (586,719) ------------------ --------------- ------------- ------------- Total real estate 6,614,951 6,518,096 5,668,035 5,526,060 Cash and cash equivalents 161,011 165,764 241,819 280,957 Escrows 20,901 31,577 29,861 85,561 Investments in securities 4,297 4,297 6,060 7,012 Tenant and other receivables, net 41,087 26,337 24,443 26,852 Accrued rental income, net 110,441 104,304 97,657 91,684 Deferred charges, net 104,370 100,804 76,209 77,319 Prepaid expenses and other assets 46,303 47,962 73,539 41,154 Investments in unconsolidated joint ventures 90,160 94,155 92,456 89,871 ------------------ --------------- ------------- ------------- TOTAL ASSETS $ 7,193,521 $ 7,093,296 $ 6,310,079 $ 6,226,470 ================== =============== ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $ 4,245,433 $ 4,177,670 $ 3,450,347 $ 3,414,891 Unsecured Line of Credit - - - - Accounts payable and accrued expenses 71,716 61,248 58,542 57,338 Dividends and distributions payable 79,005 78,241 71,917 71,274 Interest rate contracts 32,136 19,045 19,774 - Accrued interest payable 15,679 12,067 8,127 5,599 Other liabilities 52,969 53,365 56,943 51,926 ------------------ --------------- ------------- ------------- Total liabilities 4,496,938 4,401,636 3,665,650 3,601,028 ------------------ --------------- ------------- ------------- Commitments and contingencies - - - - ------------------ --------------- ------------- ------------- Minority interests 847,232 851,868 821,575 877,715 ------------------ --------------- ------------- ------------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 100,000 100,000 ------------------ --------------- ------------- ------------- 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, 90,720,477, 90,350,510, 89,701,122 and 86,630,089 issued and outstanding, respectively 907 904 897 866 Additional paid-in capital 1,784,850 1,774,335 1,759,714 1,673,349 Dividends in excess of earnings (20,296) (19,193) (15,829) (13,895) Unearned compensation (2,242) (2,386) (2,531) (848) Accumulated other comprehensive loss (13,868) (13,868) (19,397) (11,745) ------------------ --------------- ------------- ------------- Total stockholders' equity 1,749,351 1,739,792 1,722,854 1,647,727 ------------------ --------------- ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 7,193,521 $ 7,093,296 $ 6,310,079 $ 6,226,470 ================== =============== ============= =============
BOSTON PROPERTIES, INC. THIRD QUARTER 2001 CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED --------------------------------------------------------- 30-SEP-01 30-JUN-01 31-MAR-01 31-DEC-00 --------- --------- --------- --------- Revenue: Rental Base Rent (1) $ 232,300 $ 208,071 $ 185,691 $ 183,319 Recoveries from tenants 27,473 27,266 26,178 23,736 Parking and other 12,965 13,533 13,746 12,797 ------------ ------------- ------------ ------------- Total rental revenue 272,738 248,870 225,615 219,852 Development and management services 2,805 3,110 3,397 3,405 Interest and other 1,616 4,289 4,444 5,270 ------------ ------------- ------------ ------------- Total revenue 277,159 256,269 233,456 228,527 ------------ ------------- ------------ ------------- Expenses: Operating 81,475 76,865 70,343 67,335 General and administrative 9,819 9,880 9,950 9,791 Interest (2) 59,936 55,870 47,853 50,854 Depreciation and amortization 38,518 36,675 34,740 36,088 Loss on investments in other companies - 6,500 - - ------------ ------------- ------------ ------------- Total expenses 189,748 185,790 162,886 164,068 ------------ ------------- ------------ ------------- Income before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures 87,411 70,479 70,570 64,459 Net derivative losses (SFAS No.133) (16,620) (4,733) (3,055) - Minority interest in property partnerships 374 510 (255) (250) Income from unconsolidated joint ventures 997 717 1,127 402 ------------ ------------- ------------ ------------- Income before minority interest in Operating Partnership 72,162 66,973 68,387 64,611 Minority interest in Operating Partnership (3) (18,994) (18,138) (19,024) (19,472) ------------ ------------- ------------ ------------- Income before gain on sale of real estate 53,168 48,835 49,363 45,139 Gain on sale of real estate, net of minority interest - 1,851 4,654 73 ------------ ------------- ------------ ------------- Income before cumulative effect of a change in accounting principle 53,168 50,686 54,017 45,212 Cumulative effect of a change in accounting principle, net of minority interest - - (6,767) - ------------ ------------- ------------ ------------- Income before extraordinary item 53,168 50,686 47,250 45,212 Extraordinary loss, net - - - (334) ------------ ------------- ------------ ------------- Income before preferred dividend 53,168 50,686 47,250 44,878 Preferred dividend (1,653) (1,648) (1,643) (1,643) ------------ ------------- ------------ ------------- Net income available to common shareholders $ 51,515 $ 49,038 $ 45,607 $ 43,235 ============ ============= ============ ============= INCOME PER SHARE OF COMMON STOCK Net income available to common shareholders per share - basic $ 0.57 $ 0.54 $ 0.51 $ 0.53 ============ ============= ============ ============= Net income available to common shareholders per share - diluted $ 0.56 $ 0.53 $ 0.50 $ 0.52 ============ ============= ============ ============= (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 revenue by $6,400, $6,487, $5,978 and $2,608 for the three months ended September 30, 2001, June 30, 2001, March 31, 2001 and December 31, 2000, respectively. (2) Excludes capitalized interest of $14,740, $15,800, $16,098 and $12,812 for the three months ended September 30, 2001, June 30, 2001, March 31, 2001 and December 31, 2000, respectively. (3) Equals minority interest percent of 18.36%, 18.69%, 19.78% and 22.83%, respectively of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions.
BOSTON PROPERTIES, INC. THIRD QUARTER 2001 FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED -------------------------------------------------- 30-SEP-01 30-JUN-01 31-MAR-01 31-DEC-00 --------- --------- --------- --------- Income from operations before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures $ 87,411 $ 70,479 $ 70,570 $ 64,459 Add: Real estate depreciation and amortization (1) 39,360 37,599 35,557 36,830 Income from unconsolidated joint ventures 997 717 1,127 402 Less: Net derivative losses (SFAS No.133) 16,620 4,733 3,055 - Minority property partnership's share of funds from operations 832 411 303 287 Preferred dividends and distributions 8,383 8,260 8,221 8,246 ---------- ---------- ---------- ----------- Funds from Operations (FFO) 101,933 95,391 95,675 93,158 Add: Net derivative losses (SFAS No.133) 16,620 4,733 3,055 - Less: Non-cash early surrender lease income (2) 12,445 - - - ---------- ---------- ---------- ----------- FFO before net derivative losses (SFAS No.133) and non-cash early surrender lease income $ 106,108 $ 100,124 $ 98,730 $ 93,158 ========== ========== ========== =========== FFO available to common shareholders before net derivative losses (SFAS No. 133) and non-cash early surrender lease income (3) $ 86,627 $ 81,410 $ 79,201 $ 71,888 ========== ========== ========== =========== FFO per share before net derivative losses (SFAS No.133) and non-cash early surrender lease income - basic $ 0.96 $ 0.90 $ 0.89 $ 0.89 ========== ========== ========== =========== Weighted average shares outstanding - basic 90,519 89,990 88,688 80,885 ========== ========== ========== =========== FFO per share before net derivative losses (SFAS No.133) and non-cash early surrender lease income - diluted $ 0.91 $ 0.86 $ 0.85 $ 0.85 ========== ========== ========== =========== FFO per share after net derivative losses (SFAS No.133) and non-cash early surrender lease income - diluted $ 0.87 $ 0.82 $ 0.83 $ 0.85 ========== ========== ========== =========== Weighted average shares outstanding - diluted 105,812 105,259 104,160 96,008 ========== ========== ========== =========== RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS September 30, 2001 June 30, 2001 March 31, 2001 December 31, 2000 -------------------- -------------------- --------------------- -------------------- Income Shares Income Shares Income Shares Income Shares (Numer- (Denomin- (Numer- (Denomin- (Numer- (Denomin- (Numer- (Denomin- ator) ator) ator) ator) ator) ator) ator) ator) -------- --------- --------- -------- --------- --------- --------- --------- Basic FFO before net derivative losses (SFAS No.133) and non-cash early surrender lease income $ 106,108 110,876 $ 100,124 110,676 $ 98,730 110,556 $ 93,158 104,818 Effect of Dilutive Securities Convertible Preferred Units 6,730 11,011 6,612 11,011 6,578 11,011 6,603 10,370 Convertible Preferred Stock 1,653 2,625 1,648 2,625 1,643 2,625 1,643 2,625 Stock Options and other - 1,657 - 1,633 - 1,837 - 2,128 ---------- -------- ---------- -------- ---------- -------- ---------- ------- Diluted FFO before net derivative losses (SFAS No.133) and non-cash early surrender lease income $ 114,491 126,169 $ 108,384 125,945 $ 106,951 126,029 $ 101,404 119,941 ========== ======== ========== ======== ========== ======== ========== ======= Company's share of diluted FFO before net derivative losses (SFAS No.133) and non-cash early surrender lease income (4) $ 96,017 105,812 $ 90,581 105,259 $ 88,379 104,160 $ 81,169 96,008 ========== ======== ========== ======== ========== ======== ========== ======= FFO per share before net derivative losses (SFAS No.133) and non-cash early surrender lease income - basic $ 0.96 $ 0.90 $ 0.89 $ 0.89 ========== ========== ========== ========== FFO per share before net derivative losses (SFAS No.133) and non-cash early surrender lease income - basic $ 0.91 $ 0.86 $ 0.85 $ 0.85 ========== ========== ========== ========== (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,394, $1,376, $1,260 and $1,189, less corporate related depreciation of $552, $452, $443 and $447, for the three months ended September 30, 2001, June 30, 2001, March 31, 2001, and December 31, 2000, respectively. (2) Represents non-cash early surrender lease income that will be recognized in Funds from Operations as received in monthly amounts of $1,309 through July 15, 2002. (3) Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2001, June 30, 2001, March 31, 2001, and December 31, 2000 was 81.64%, 81.31%, 80.22% and 77.17%, respectively. (4) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2001, June 30, 2001, March 31, 2001 and December 31, 2000 was 83.87%, 83.58%, 82.65% and 80.05%, respectively.
BOSTON PROPERTIES, INC. THIRD QUARTER 2001 FINANCIAL RATIOS THREE MONTHS ENDED --------------------------------------------- 9/30/01 6/30/01 3/31/01 12/31/00 -------- --------- ---------- ---------- RATIOS COMPUTED FOR INDUSTRY COMPARISONS: OPERATIONAL RATIOS (1) Debt Service Coverage Ratio 2.72 (2) 2.54 2.74 2.56 (EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal) Interest Coverage Ratio (excluding capitalized interest) 3.17 (2) 2.98 3.26 3.05 (EBITDA + Income from Unconsolidated Joint Venture)/Interest Interest Coverage Ratio (including capitalized interest) 2.53 (2) 2.32 2.43 2.43 (EBITDA + Income from Unconsolidated Joint Venture)/Interest Return on Shareholder's Equity 18.74% (2) 16.06% 15.99% 17.50% (EBITDA/Average Equity (book value)) (%) Return on Real Estate Investments 11.32% (2) 10.70% 10.95% 11.26% (EBITDA/Average Real Estate Investments (book value)) (%) Dividend Payout Ratio 63.74% 67.44% 62.35% 62.35% (Dividends Declared/FFO) (%) (1) EBITDA is equal to earnings before interest, taxes, depreciation and amortization. (2) Includes non-cash early surrender lease income of $12,445.
Exhibit 99.2 BOSTON PROPERTIES, INC. 111 HUNTINGTON AVENUE BOSTON, MA 02199 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD - -------------- -------------------------------- Douglas T. Linde Marilynn Meek - General Info. (212) 445-8431 Chief Financial Officer Claire Koeneman - Analyst (312) 266-7800 (617) 236-3300 Judith Sylk-Siegel - Media (212) 445-8431 BOSTON PROPERTIES, INC. TO FILE FORM 10-Q ON NOVEMBER 14TH BOSTON, MA, NOVEMBER 13, 2001 - BOSTON PROPERTIES, INC. (NYSE: BXP) plans to file its Form 10-Q tomorrow, November 14, 2001, with results for the third quarter ended September 30, 2001. The net income to be reported in the Form 10-Q will include additional non-cash revenue of $12.4 million as compared to information disclosed in the press release and Form 8-K filed on October 23rd. This potential adjustment was previously discussed by management during their third quarter earnings conference call which was held on October 24th and does not change the Funds from Operations (FFO) as reported of $0.91 per share diluted. At the time of the October 24th conference call, the Company and its auditors were still reviewing the accounting treatment associated with revenue generated from the surrender of certain space at its 875 Third Avenue property in New York City. The Company and its auditors have since determined that all of the payments to be made in association with that surrender will be recognized in income in the third quarter of 2001. This results in a $10.1 million (net of minority interest share of $2.3 million) non-cash increase to net income available to common shareholders for the quarter. Net income available to common shareholders for the third quarter is $51.5 million ($0.56 per share diluted), rather than $41.4 million ($0.45 per share diluted) as reported on October 23rd. Consistent with its historical practice, Boston Properties will recognize this early surrender income in its Funds from Operations as cash is actually received over the remaining term of the lease. Boston Properties expects to receive approximately $1.3 million per month from October 1, 2001 to July 15, 2002. These amounts will be included in FFO and identified separately in each quarter as received. The Company's previously disclosed 2001 and 2002 FFO guidance remains unchanged. Net income guidance for 2001 and 2002 after adjusting for this non-cash item is also unchanged. 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 -MORE-
of the largest owners and developers of Class A office properties in the United States, concentrated in four core markets - Boston, Midtown Manhattan, Washington, DC and San Francisco. 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 Three months ended Nine Months Ended September 30, September 30, ----------------------------------------------- 2001 2000 2001 2000 ----------------------------------------------- (UNAUDITED AND IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) Revenue Rental: Base rent $232,300 $ 183,749 $626,062 $ 532,039 Recoveries from tenants 27,473 22,886 80,917 68,956 Parking and other 12,965 12,798 40,244 38,095 --------- ---------- --------- ---------- Total rental revenue 272,738 219,433 747,223 639,090 Development and management services 2,805 2,693 9,312 8,432 Interest and other 1,616 1,187 10,349 3,304 --------- ---------- --------- ---------- Total revenue 277,159 223,313 766,884 650,826 --------- ---------- --------- ---------- Expenses Operating 81,475 68,154 228,683 197,366 General and administrative 9,819 9,871 29,649 25,868 Interest 59,936 54,752 163,659 166,210 Depreciation and amortization 38,518 32,436 109,933 97,062 Loss on investments in securities - - 6,500 - --------- ---------- --------- ---------- Total expenses 189,748 165,213 538,424 486,506 --------- ---------- --------- ---------- Income before net derivative losses, minority interests and income from unconsolidated joint ventures 87,411 58,100 228,460 164,320 Net derivative losses (16,620) - (24,408) - Minority interests in property partnerships 374 (245) 629 (681) Income from unconsolidated joint ventures 997 549 2,841 1,356 --------- ---------- --------- ---------- Income before minority interest in Operating Partnership 72,162 58,404 207,522 164,995 Minority interest in Operating Partnership (18,994) (19,627) (56,156) (56,505) --------- ---------- --------- ---------- Income before gain (loss) on sale of real estate 53,168 38,777 151,366 108,490 Gain (loss) on sale of real estate, net of minority interest - (604) 6,505 (307) --------- ---------- --------- ---------- Income before cumulative effect of a change in accounting principle 53,168 38,173 157,871 108,183 Cumulative effect of a change in accounting principle, net of minority interest - - (6,767) - --------- ---------- --------- ---------- Net income before preferred dividend 53,168 38,173 151,104 108,183 Preferred dividend (1,653) (1,643) (4,944) (4,929) --------- ---------- --------- ---------- Net income available to common shareholders $ 51,515 $ 36,530 $146,160 $ 103,254 ========= ========== ========= ========== Basic earnings per share: Income before gain (loss) on sale of real estate and cumulative effect of a change in accounting principle $ 0.57 $ 0.54 $ 1.63 $ 1.51 Gain (loss) on sale of real estate, net of minority interest - (0.01) 0.07 - Cumulative effect of a change in accounting principle, net of minority interest - - (0.07) - --------- ---------- --------- ---------- Net income available to common shareholders $ 0.57 $ 0.53 $ 1.63 $ 1.51 ========= ========== ========= ========== Weighted average number of common shares outstanding 90,519 68,752 89,753 68,568 ========= ========== ========= ========== Diluted earnings per share: Income before gain (loss) on sale of real estate and cumulative effect of a change in accounting principle $ 0.56 $ 0.53 $ 1.59 $ 1.49 Gain (loss) on sale of real estate, net of minority interest - (0.01) 0.07 (0.01) Cumulative effect of a change in accounting principle, net of minority interest - - (0.07) - --------- ---------- --------- ---------- Net income available to common shareholders $ 0.56 $ 0.52 $ 1.59 $ 1.48 ========= ========== ========= ========== Weighted average number of common and common equivalent shares outstanding 92,828 70,661 92,004 69,600 ========= ========== ========= ==========
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2001 2000 ---------------------- -------------------------- (UNAUDITED) (IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS) ASSETS Real estate: $ 7,297,980 $ 6,112,779 Less: accumulated depreciation (683,029) (586,719) ---------------------- ------------------- Total real estate 6,614,951 5,526,060 Cash and cash equivalents 161,011 280,957 Escrows 20,901 85,561 Investments in securities 4,297 7,012 Tenant and other receivables 41,087 26,852 Accrued rental income 110,441 91,684 Deferred charges, net 104,370 77,319 Prepaid expenses and other assets 46,303 41,154 Investments in unconsolidated joint ventures 90,160 89,871 ---------------------- ------------------- Total assets $ 7,193,521 $ 6,226,470 ====================== =================== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $ 4,245,433 $ 3,414,891 Accounts payable and accrued expenses 71,716 57,338 Dividends and distributions payable 79,005 71,274 Interest rate contracts 32,136 - Accrued interest payable 15,679 5,599 Other liabilities 52,969 51,926 ---------------------- ------------------- Total liabilities 4,496,938 3,601,028 ---------------------- ------------------- Commitments and contingencies - - ---------------------- ------------------- Minority interests 847,232 877,715 ---------------------- ------------------- 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, 90,720,477 and 86,630,089 issued and outstanding in 2001 and 2000, respectively 907 866 Additional paid-in capital 1,784,850 1,673,349 Dividends in excess of earnings (20,296) (13,895) Unearned compensation (2,242) (848) Accumulated other comprehensive loss (13,868) (11,745) ---------------------- ------------------- Total stockholders' equity 1,749,351 1,647,727 ---------------------- ------------------- Total liabilities and stockholders' equity $ 7,193,521 $ 6,226,470 ====================== ===================
BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS) THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ---------------------------------------------------- 2001 2000 2001 2000 -------------- --------- ---------- ---------- Income before net derivative losses (SFAS No. 133), minority interests and income from unconsolidated joint ventures $ 87,411 $ 58,100 $ 228,460 $ 164,320 Add: Real estate depreciation and amortization 39,360 33,007 112,516 97,556 Income from unconsolidated joint ventures 997 549 2,841 1,356 Less: Net derivative losses (SFAS No. 133) (16,620) - (24,408) - Minority property partnerships' share of funds from operations (832) (284) (1,546) (774) Preferred dividends and distributions (8,383) (8,248) (24,864) (24,748) -------------- --------- ---------- ---------- Funds from operations $101,933 $ 83,124 $ 292,999 $ 237,710 Add: Net derivative losses (SFAS No. 133) 16,620 - 24,408 - Less: Non-cash early surrender lease income (12,445) - (12,445) - -------------- --------- ---------- ---------- Funds from operations before net derivative losses (SFAS No. 133) and non-cash early surrender lease income $106,108 $ 83,124 $ 304,962 $ 237,710 ============== ========= ========== ========== Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and non-cash early surrender lease income $ 86,627 $ 61,543 $ 247,210 $ 175,526 ============== ========= ========== ========== Weighted average shares outstanding - basic 90,519 68,752 89,753 68,568 ============== ========= ========== ========== FFO per share basic before net derivative losses (SFAS No. 133) and non-cash early surrender lease income $ 0.96 $ 0.90 $ 2.76 $ 2.56 ============== ========= ========== ========== FFO per share basic after net derivative losses (SFAS No. 133) and non-cash early surrender lease income $ 0.92 $ 0.90 $ 2.65 $ 2.56 Weighted average shares outstanding - diluted 105,812 83,657 104,991 82,600 ============== ========= ========== ========== FFO per share diluted before net derivative losses (SFAS No. 133) and non-cash early surrender lease income $ 0.91 $ 0.85 $ 2.62 $ 2.46 ============== ========= ========== ========== FFO per share diluted after net derivative losses (SFAS No. 133) and non-cash early surrender lease income $ 0.87 $ 0.85 $ 2.53 $ 2.46 ============== ========= ========== ==========