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): JANUARY 22, 2002 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.) 111 HUNTINGTON AVENUE 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 January 22, 2002 announcing the Company's results for the fourth quarter ended December 31, 2001, 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 December 31, 2001. 99.2 The Boston Properties, Inc. press release dated January 22, 2002 for the quarter ended December 31, 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: January 22, 2002 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde --------------------------------- By: Douglas T. Linde Chief Financial Officer
Exhibit 99.1 BOSTON PROPERTIES, INC. SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED DECEMBER 31, 2001
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 INDEX PAGE ---- COMPANY BACKGROUND 3 INVESTOR INFORMATION 4-5 FINANCIAL HIGHLIGHTS 6 CONSOLIDATED BALANCE SHEETS 7 CONSOLIDATED INCOME STATEMENTS 8 FUNDS FROM OPERATIONS 9 FINANCIAL RATIOS 10 CAPITAL STRUCTURE 11 DEBT ANALYSIS 12-14 JOINT VENTURES 15 PORTFOLIO OVERVIEW - SQUARE FOOTAGE 16 PROPERTY LISTING 17-20 TOP 20 TENANTS 21 PORTFOLIO OVERVIEW - FFO 22 OCCUPANCY ANALYSIS 23 OFFICE PROPERTIES - LEASE EXPIRATION ROLL OUT 24 OFFICE/TECHNICAL PROPERTIES - LEASE EXPIRATION ROLL OUT 25 INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 26 RETAIL PROPERTIES - LEASE EXPIRATION ROLL OUT 27 GRAND TOTAL - OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND RETAIL PROPERTIES 28 BOSTON AREA LEASE EXPIRATION ROLL OUT 29 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 30 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 31 NEW YORK AREA LEASE EXPIRATION ROLL OUT 32 PRINCETON AREA LEASE EXPIRATION ROLL OUT 33 OTHER AREA LEASE EXPIRATION ROLL OUT 34 HOTEL PERFORMANCE 35 SAME PROPERTY PERFORMANCE 36 IN-SERVICE PROPERTY PERFORMANCE 37 CAPITAL EXPENDITURES 38 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 39 VALUE CREATION PIPELINE - DEVELOPMENT 40 VALUE CREATION PIPELINE - LAND PARCELS 41 2
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 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 Class A office properties in the United States, concentrated in four core markets - Boston, Midtown Manhattan, Washington DC, and 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. On October 31, 2000, Boston Properties successfully completed an additional public offering resulting in 17,110,000 shares (including the underwriters' over-allotment) being sold at $39.0625 per share for a total offering of $668,359,000. Through its predecessor company founded by Mortimer B. Zuckerman and Edward H. Linde in 1970, the Company grew through the seventies, eighties, and nineties by developing and redeveloping Class A office properties, office/technical 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 17.7 million square feet to its portfolio, representing an investment of approximately $4.7 billion, and the Company has delivered 29 development properties adding approximately 4.3 million square feet to its portfolio, representing an investment of approximately $568.5 million. In addition, the Company is constructing 12 office properties for a total anticipated investment of approximately $1.8 billion. The Company owns or controls land where it can develop an additional 9.7 million square feet. 3
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 INVESTOR INFORMATION 111 Huntington Avenue Boston, MA 02199-7610 (617) 236-3300 (617) 236-3311 (fax) KEY EMPLOYEES: Mortimer B. Zuckerman Chairman of the Board Edward H. Linde President, CEO and Director Robert E. Burke Executive Vice President, Operations Douglas T. Linde Senior Vice President, CFO and Treasurer TIMING QUARTERLY RESULTS FOR 2002 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING ANTICIPATED SCHEDULE: FIRST QUARTER LATE APRIL SECOND QUARTER LATE JULY THIRD QUARTER LATE OCTOBER FOURTH QUARTER LATE JANUARY 4
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 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 (BASED ON NEW YORK STOCK EXCHANGE CLOSING PRICES): 4TH QUARTER 2001 3RD QUARTER 2001 2ND QUARTER 2001 1ST QUARTER 2001 HIGH PRICE $ 38.4100 $ 41.2600 $ 41.0600 $ 43.3125 LOW PRICE $ 34.3300 $ 36.2000 $ 36.4700 $ 37.9200 CLOSING PRICE $ 38.0000 $ 38.1300 $ 40.9000 $ 38.4500 DIVIDENDS PER SHARE - ANNUALIZED $ 2.32 $ 2.32 $ 2.32 $ 2.12 CLOSING DIVIDEND YIELD - ANNUALIZED 6.11% 6.08% 5.67% 5.51% CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 124,630 124,644 124,369 124,240 CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $4,735,940 $4,752,676 $5,086,692 $4,777,028 5
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 FINANCIAL HIGHLIGHTS (UNAUDITED AND IN THOUSANDS) THREE MONTHS ENDED --------------------------------------------------------------------------- DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 ----------------- ------------------ ------------- -------------- INCOME ITEMS: Revenue $ 266,094 $ 277,159 (1) $ 256,269 $ 233,456 Net straight line rent $ 9,215 $ 6,400 $ 6,487 $ 5,978 Lease termination fees $ 397 $ 4,857 $ 2,458 $ 1,163 Capitalized interest $ 12,739 $ 14,740 $ 15,800 $ 16,098 Net income available to common shareholders before net derivative losses (SFAS No.133) $ 56,980 $ 65,083 $ 52,887 $ 48,058 Funds from operations (FFO) before net derivative losses (SFAS No.133) and early surrender lease income - basic $ 110,942 $ 106,108 $ 100,124 $ 98,730 Company's share $ 90,704 $ 86,627 $ 81,410 $ 79,201 FFO before net derivative losses (SFAS 133) and after early surrender lease income per share - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89 FFO before net derivative losses (SFAS 133) and after early surrender lease income per share - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85 Dividends per share $ 0.58 $ 0.58 $ 0.58 $ 0.53 Funds available for distribution (FAD) (2) $ 93,123 $ 73,157 $ 80,335 $ 78,835 RATIOS: Interest Coverage Ratio (excluding capitalized interest) 2.98 3.17 2.98 3.26 Interest Coverage Ratio (including capitalized interest) 2.45 2.53 2.32 2.43 FFO Payout Ratio 61.05% 63.74% 67.44% 62.35% FAD Payout Ratio 69.13% 88.01% 79.95% 74.36% DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 ----------------- ------------------ ------------- -------------- CAPITALIZATION: Total Debt $4,314,942 $4,245,433 $4,177,670 $3,450,347 Total Common Shares Outstanding @ Quarter End 90,781 90,720 90,351 89,701 Total Preferred Shares Outstanding @ Quarter End (if converted) 2,625 2,625 2,625 2,625 Total Common Units Outstanding @ Quarter End 20,213 20,288 20,382 20,903 Total Preferred Units Outstanding @ Quarter End (if converted) 11,011 11,011 11,011 11,011 Price @ Quarter End $ 38.0000 $ 38.1300 $ 40.9000 $ 38.4500 Equity Value @ Quarter End $4,735,940 $4,752,676 $5,086,692 $4,777,028 Total Market Capitalization $9,050,882 $8,998,109 $9,264,362 $8,227,375 Debt/Total Market Capitalization 47.67% 47.18% 45.09% 41.94% (1) Includes non-cash early surrender lease 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. 6
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 ----------------- ------------------ ------------- -------------- (unaudited) (unaudited) (unaudited) (unaudited) ASSETS Real estate $6,165,932 $6,147,265 $6,090,113 $5,280,149 Development in progress 1,109,302 984,962 915,135 881,274 Land held for future development 182,672 165,753 160,729 123,232 Less accumulated depreciation (719,854) (683,029) (647,881) (616,620) ---------- ---------- ---------- ---------- Total real estate 6,738,052 6,614,951 6,518,096 5,668,035 Cash and cash equivalents 98,067 161,011 165,764 241,819 Escrows 23,000 20,901 31,577 29,861 Investments in securities 4,297 4,297 4,297 6,060 Tenant and other receivables, net 43,546 41,087 26,337 24,443 Accrued rental income, net 119,494 110,441 104,304 97,657 Deferred charges, net 107,573 104,370 100,804 76,209 Prepaid expenses and other assets 20,996 46,303 47,962 73,539 Investments in unconsolidated joint ventures 98,485 90,160 94,155 92,456 ---------- ---------- ---------- ---------- Total assets $7,253,510 $7,193,521 $7,093,296 $6,310,079 ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $4,314,942 $4,245,433 $4,177,670 $3,450,347 Unsecured Line of Credit - - - - Accounts payable and accrued expenses 81,108 71,716 61,248 58,542 Dividends and distributions payable 79,561 79,005 78,241 71,917 Interest rate contracts 11,147 32,136 19,045 19,774 Accrued interest payable 9,080 15,679 12,067 8,127 Other liabilities 58,859 52,969 53,365 56,943 ---------- ---------- ---------- ---------- Total liabilities 4,554,697 4,496,938 4,401,636 3,665,650 ---------- ---------- ---------- ---------- Commitments and contingencies - - - - ---------- ---------- ---------- ---------- Minority interests 844,740 847,232 851,868 821,575 ---------- ---------- ---------- ---------- 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, 90,780,591, 90,720,477, 90,350,510, and 89,701,122 issued and outstanding, respectively 908 907 904 897 Additional paid-in capital 1,789,521 1,784,850 1,774,335 1,759,714 Dividends in excess of earnings (17,669) (20,296) (19,193) (15,829) Treasury stock, at cost (2,722) - - - Unearned compensation (2,097) (2,242) (2,386) (2,531) Accumulated other comprehensive loss (13,868) (13,868) (13,868) (19,397) ---------- ---------- ---------- ---------- Total stockholders' equity 1,754,073 1,749,351 1,739,792 1,722,854 ---------- ---------- ---------- ---------- Total liabilities and stockholders' equity $7,253,510 $7,193,521 $7,093,296 $6,310,079 ========== ========== ========== ========== 7
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED ------------------------------------------------------------- 31-DEC-01 30-SEP-01 30-JUN-01 31-MAR-01 --------- --------- --------- --------- Revenue: Rental Base Rent (1) $221,664 $232,300 $208,071 $185,691 Recoveries from tenants 26,966 27,473 27,266 26,178 Parking and other 11,757 12,965 13,533 13,746 -------- -------- -------- -------- Total rental revenue 260,387 272,738 248,870 225,615 Development and management services 3,878 2,805 3,110 3,397 Interest and other 1,829 1,616 4,289 4,444 -------- -------- -------- -------- Total revenue 266,094 277,159 256,269 233,456 -------- -------- -------- -------- Expenses: Operating 83,611 81,475 76,865 70,343 General and administrative 8,663 9,819 9,880 9,950 Interest (2) 59,730 59,936 55,870 47,853 Depreciation and amortization 40,230 38,518 36,675 34,740 Loss on investments in other companies - - 6,500 - -------- -------- -------- -------- Total expenses 192,234 189,748 185,790 162,886 -------- -------- -------- -------- Income before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures 73,860 87,411 70,479 70,570 Net derivative losses (SFAS No.133) (2,080) (16,620) (4,733) (3,055) Minority interest in property partnerships 456 374 510 (255) Income from unconsolidated joint ventures 1,345 997 717 1,127 -------- -------- -------- -------- Income before minority interest in Operating Partnership 73,581 72,162 66,973 68,387 Minority interest in Operating Partnership (3) (19,237) (18,994) (18,138) (19,024) -------- -------- -------- -------- Income before gain on sale of real estate 54,344 53,168 48,835 49,363 Gain on sale of real estate, net of minority interest 2,584 - 1,851 4,654 -------- -------- -------- -------- Income before cumulative effect of a change in accounting principle 56,928 53,168 50,686 54,017 Cumulative effect of a change in accounting principle, net of minority interest - - - (6,767) -------- -------- -------- -------- Income before preferred dividend 56,928 53,168 50,686 47,250 Preferred dividend (1,648) (1,653) (1,648) (1,643) -------- -------- -------- -------- Net income available to common shareholders $ 55,280 $ 51,515 $ 49,038 $ 45,607 ======== ======== ======== ======== INCOME PER SHARE OF COMMON STOCK Net income available to common shareholders per share - basic $ 0.61 $ 0.57 $ 0.54 $ 0.51 ======== ======== ======== ======== Net income available to common shareholders per share - diluted $ 0.60 $ 0.56 $ 0.53 $ 0.50 ======== ======== ======== ======== (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 $9,215, $6,400, $6,487 and $5,978 for the three months ended December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001, respectively. (2) Excludes capitalized interest of $12,739, $14,740, $15,800 and $16,098 for the three months ended December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001, respectively. (3) Equals minority interest percent of 18.24%, 18.36%, 18.69% and 19.78%, respectively of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001, respectively. 8
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED) THREE MONTHS ENDED --------------------------------------------------------------------- 31-DEC-01 30-SEP-01 30-JUN-01 31-MAR-01 --------- --------- --------- --------- Income from operations before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures $ 73,860 $ 87,411 $ 70,479 $70,570 Add: Real estate depreciation and amortization (1) 41,034 39,360 37,599 35,557 Income from unconsolidated joint ventures 1,345 997 717 1,127 Less: Net derivative losses (SFAS No.133) 2,080 16,620 4,733 3,055 Minority property partnership's share of funds from operations 776 832 411 303 Preferred dividends and distributions 8,448 8,383 8,260 8,221 -------- -------- -------- ------- Funds from operations (FFO) 104,935 101,933 95,391 95,675 Add (subtract): Net derivative losses (SFAS No.133) 2,080 16,620 4,733 3,055 Early surrender lease payments received - contractual basis 3,927 (12,445) - - -------- -------- -------- ------- FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $110,942 $106,108 $100,124 $98,730 ======== ======== ======== ======= FFO available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease payments received (3) $ 90,704 $ 86,627 $ 81,410 $79,201 ======== ======== ======== ======= FFO per share before net derivative losses (SFAS No.133) and after cash basis early surrender lease income - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89 ======== ======== ======== ======= Weighted average shares outstanding - basic 90,737 90,519 89,990 88,688 ======== ======== ======== ======= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85 ======== ======== ======== ======= FFO per share after net derivative losses (SFAS No.133) and before early surrender lease payments received - diluted $ 0.90 $ 0.87 $ 0.82 $ 0.83 ======== ======== ======== ======= Weighted average shares outstanding - diluted 105,577 105,812 105,259 104,160 ======== ======== ======== ======= RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001 ----------------- ------------------ ------------- -------------- INCOME SHARES INCOME SHARES INCOME SHARES INCOME SHARES (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR)(NUMERATOR)(DENOMINATOR)(NUMERATOR)(DENOMINATOR) ----------- ------------- ----------- ------------ ----------- ------------ ---------- ----------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income $110,942 110,982 $106,108 110,876 $100,124 110,676 $98,730 110,556 Effect of Dilutive Securities Convertible Preferred Units 6,800 11,011 6,730 11,011 6,612 11,011 6,578 11,011 Convertible Preferred Stock 1,648 2,625 1,653 2,625 1,648 2,625 1,643 2,625 Stock Options and other - 1,205 - 1,657 - 1,633 - 1,837 -------- ------- -------- ------- -------- ------- -------- ------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $119,390 125,823 $114,491 126,169 $108,384 125,945 $106,951 126,029 ======== ======= ======== ======= ======== ======= ======== ======= Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received (2) $100,179 105,577 $96,017 105,812 $90,581 105,259 $88,379 104,160 ======== ======= ======== ======= ======== ======= ======== ======= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85 ======== ======== ======== ======== (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,380, $1,394, $1,376 and $1,260, less corporate related depreciation of $576, $552, $452 and $443 , for the three months ended December 31, 2001, September 30, 2001, June 30, 2001 and March 31, 2001,respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended December 31, 2001, September 30, 2001, June 30, 2001and March 31, 2001 was 81.79%, 81.64%, 81.31%and 80.22%, respectively. (3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended December 31, 2001, September 30, 2001, June 30, 2001and March 31, 2001 was 83.91%, 83.87%, 83.58% and 82.65%, respectively. 9
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 FINANCIAL RATIOS THREE MONTHS ENDED ------------------------------------------------------------------ 12/31/2001 9/30/2001 6/30/2001 3/31/2001 ---------- --------- --------- --------- RATIOS COMPUTED FOR INDUSTRY COMPARISONS: OPERATIONAL RATIOS (1) Debt Service Coverage Ratio 2.51 2.72 (2) 2.54 2.74 (EBITDA + Income from Unconsolidated Joint Ventures)/ (Interest+Principal) Interest Coverage Ratio (excluding capitalized int 2.98 3.17 (2) 2.98 3.26 (EBITDA + Income from Unconsolidated Joint Venture)/ Interest Interest Coverage Ratio (including capitalized interest) 2.45 2.53 (2) 2.32 2.43 (EBITDA + Income from Unconsolidated Joint Venture)/ Interest Return on Shareholder's Equity 16.92% 18.74% (2) 16.06% 15.99% (EBITDA/Average Equity (book value)) (%) Return on Real Estate Investments 10.41% 11.32% (2) 10.70% 10.95% (EBITDA/Average Real Estate Investments (book value)) (%) Dividend Payout Ratio 61.05% 63.74% 67.44% 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. 10
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 CAPITAL STRUCTURE DEBT (IN THOUSANDS) AGGREGATE PRINCIPAL DECEMBER 31, 2001 ------------------- Mortgage Loans $4,314,942 Unsecured Line of Credit - ---------- Total Debt $4,314,942 ========== EQUITY (IN THOUSANDS) COMMON SHARES & UNITS STOCK OUTSTANDING EQUIVALENTS EQUIVALENT (1) -------------- ----------- ------------- Common Stock 90,781 90,781 $3,449,678 Preferred Stock 2,000 2,625 99,750 Operating Partnership Units 20,213 20,213 768,094 Preferred Operating Partnership Units 9,346 11,011 418,418 -------- ---------- Total Equity 124,630 $4,735,940 ======== ========== Total Market Capitalization $9,050,882 ========== (1) Value based on December 31, 2001 closing price of $38.00. 11
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 DEBT ANALYSIS DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) YEAR 2002 2003 2004 2005 2006 THEREAFTER TOTAL - ------ ----- ---- ---- ----- ------ ---------- ----- Amount $282,139 $809,695 $306,567 $277,880 $284,516 $2,354,145 $4,314,942 UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003 (IN THOUSANDS) OUTSTANDING LETTERS OF REMAINING FACILITY @12/31/01 CREDIT CAPACITY -------- ----------- ---------- ---------- $605,000 $- $3,470 $601,530 UNSECURED AND SECURED DEBT ANALYSIS WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Unsecured Debt 0.00% 0.00% 1.2 years Secured Debt 100.00% 6.57% 5.7 years ------ ---- --- Total Debt 100.00% 6.57% 5.7 years ====== ==== === FLOATING AND FIXED RATE DEBT ANALYSIS WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 20.07% 3.77% 1.4 years Fixed Rate Debt 79.93% 7.27% 6.7 years ------ ---- --- Total Debt 100.00% 6.57% 5.7 years ====== ==== === 12
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 DEBT ANALYSIS DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS) PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL -------- ---- ---- ---- ---- ---- ---------- ----- Citigroup Center $ 5,366 $ 5,763 $ 6,191 $ 6,651 $ 7,145 $490,928 $522,044 Embarcadero Center One, Two and Federal Reserve 4,207 4,498 4,809 5,141 5,496 284,789 308,940 5 Times Square - 289,179 - - - - 289,179 Prudential Center 3,726 4,299 4,591 4,919 5,256 265,325 288,116 280 Park Avenue 2,595 2,800 3,022 3,261 3,519 252,592 267,789 599 Lexington Avenue - - - 225,000 - - 225,000 111 Huntington Avenue 184,307 - - - - - 184,307 Embarcadero Center Four 2,863 3,315 3,544 3,797 4,061 134,058 151,638 875 Third Avenue 2,030 146,766 - - - - 148,796 Times Square Tower - - 145,472 - - - 145,472 Embarcadero Center Three 1,900 2,206 2,351 2,506 2,671 132,726 144,360 Two Independence Square 1,285 113,808 - - - - 115,093 Riverfront Plaza 2,340 2,720 2,905 3,104 3,314 98,867 113,250 Democracy Center 1,703 1,828 1,961 2,103 2,257 96,150 106,002 Embarcadero Center West Tower 1,247 1,449 1,546 1,649 90,416 - 96,307 100 East Pratt Street 1,718 1,836 1,964 2,100 2,246 80,511 90,375 601 and 651 Gateway Boulevard 699 826 899 977 1,062 84,721 89,184 One Independence Square - 75,000 - - - - 75,000 Reservoir Place 2,669 2,859 3,061 3,279 60,067 - 71,935 One & Two Reston Overlook 759 818 65,908 - - - 67,485 2300 N Street - 66,000 - - - - 66,000 202, 206 & 214 Carnegie Center 564 610 663 719 780 59,061 62,397 New Dominion Technology Park, Building One 61 102 91 654 1,282 55,420 57,610 Capital Gallery 1,192 1,293 1,404 1,524 50,651 - 56,064 504,506 & 508 Carnegie Center 842 979 1,052 1,136 1,221 42,229 47,459 13
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 DEBT ANALYSIS DEBT MATURITIES AND PRINCIPAL PAYMENTS (CONTINUED) (IN THOUSANDS) PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL -------- ---- ---- ---- ---- ---- ---------- ----- Waltham Weston Corporate Center - - 46,446 - - - 46,446 10 & 20 Burlington Mall Road 548 641 688 741 795 36,444 39,857 10 Cambridge Center 473 559 607 659 715 32,213 35,226 1301 New York Avenue 1,128 1,217 1,315 1,417 1,531 25,061 31,669 Sumner Square 447 481 518 557 599 27,581 30,183 Eight Cambridge Center 477 516 557 601 649 25,188 27,988 2600 Tower Oaks Boulevard 27,318 - - - - - 27,318 Quorum Office Park - 27,295 - - - - 27,295 510 Carnegie Center 470 547 588 635 683 24,255 27,178 Lockheed Martin Building 519 601 641 685 732 22,581 25,759 Orbital Sciences - Phase I 25,644 - - - - - 25,644 University Place 561 655 702 752 806 21,203 24,679 Reston Corporate Center 497 574 612 654 698 21,268 24,303 Orbital Sciences - Phase II - 23,587 - - - - 23,587 191 Spring Street 375 407 443 482 20,773 - 22,480 Bedford Business Park 536 634 690 751 818 17,749 21,178 NIMA Building 429 497 530 566 604 18,430 21,056 40 Shattuck Road - 14,822 - - - - 14,822 101 Carnegie Center 296 348 375 406 6,622 - 8,047 Montvale Center 134 160 173 189 6,762 - 7,418 302 Carnegie Center - 6,969 - - - - 6,969 Hilltop Business Center 176 187 200 214 230 4,581 5,588 201 Carnegie Center 38 44 48 51 55 214 450 -------- -------- -------- -------- -------- ---------- ---------- $282,139 $809,695 $306,567 $277,880 $284,516 $2,354,145 $4,314,942 ======== ======== ======== ======== ======== ========== ========== 14
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 JOINT VENTURES (UNAUDITED AND IN THOUSANDS) AS OF DECEMBER 31, 2001 ONE MARKET 140 265 901 TWO FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY NEW YORK FREEDOM SQUARE NORTH SQUARE STREET STREET SQUARE AVENUE (2) SQUARE (2) COMBINED -------- ------- ------------- --------- -------- --------- ---------- ---------- -------- Total Equity (1) $ 1,253 $14,774 $32,379 $ 5,377 $18,911 $ 6,660 $12,321 $ 6,810 $ 98,485 ======= ======= ======= ======= ======= ======= ======= ======= ======== Mortgage/Construction loans payable (1) $19,130 $49,373 $70,476 $14,197 $18,900 $23,048 $ - $21,058 $216,182 ======= ======= ======= ======= ======= ======= ======= ======= ======== BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 25.00% 50.00% ======= ======= ======= ======= ======= ======= ======= ======= ======== RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES FOR THE THREE MONTHS ENDED DECEMBER 31, 2001 ONE MARKET 140 265 901 TWO FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY NEW YORK FREEDOM SQUARE NORTH SQUARE STREET STREET (4) SQUARE (5) AVENUE (2) SQUARE (2) COMBINED -------- ------- ------------ -------- ---------- ---------- ---------- ---------- -------- REVENUE Total revenue $3,727 $4,905 $6,271 $3,091 $2,465 $566 $ - $ - $21,025(3) ------- ------ ------ ------- ------- ------ ------- ------- ------- EXPENSES Operating 1,029 1,491 1,939 478 963 40 - - 5,940 Interest 1,489 1,903 2,870 1,063 513 79 - - 7,917 Depreciation and amortization 799 630 1,182 281 506 102 - - 3,500 ------- ------ ------ ------- ------- ------ ------- ------- ------- Total expenses 3,317 4,024 5,991 1,822 1,982 221 - - 17,357 ------- ------ ------ ------- ------- ------ ------- ------- ------- Net income $ 410 $ 881 $ 280 $1,269 $ 483 $345 $ - $ - $ 3,668 ======= ====== ====== ====== ====== ==== ======= ======= ======= BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 25.00% 50.00% ======= ====== ====== ====== ====== ==== ======= ======= BXP's share of net income $ 102 $ 441 $ 143 $ 317 $ 169 $173 $ - $ - $ 1,345 ======= ====== ====== ====== ====== ==== ======= ======= ======= BXP's share of Funds from Operations $ 300 $ 756 $ 733 $ 389 $ 323 $224 $ - $ - $ 2,725 ======= ====== ====== ====== ====== ==== ======= ======= ======= (1) Represents the Company's share. (2) Property is currently under development. (3) The impact of the straight-line rent adjustment increased revenue by $1,875 for the three months ended December 31, 2001. (4) The Company is currently repositioning this property. (5) This property had an initial occupancy in December 2001. 15
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PORTFOLIO OVERVIEW - SQUARE FOOTAGE RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY GEOGRAPHIC AREA OFFICE (1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL --------------- ---------- ---------------- ---------- ----- ---------- Greater Boston 6,523,103 (2) 545,206 169,273 7,237,582 25.03% Greater Washington 6,657,222 (3) 1,143,148 - 7,800,370 26.98% Greater San Francisco 4,451,797 144,366 280,213 4,876,376 16.87% Midtown Manhattan 4,454,264 - - 4,454,264 15.41% Princeton/ East Brunswick, NJ 2,308,822 - - 2,308,822 7.99% Baltimore, MD 1,174,629 - - 1,174,629 4.06% Richmond, VA 899,604 - - 899,604 3.11% Bucks County, PA - - 161,000 161,000 0.56% ---------- --------- -------- ----------- ------- 26,469,441 1,832,720 610,486 28,912,647 100.00% ========== ========= ======== =========== ======= % of Total 91.55% 6.34% 2.11% 100.00% HOTEL PROPERTIES NUMBER OF SQUARE HOTEL PROPERTIES ROOMS FEET ---------------- --------- ------ Long Wharf Marriott, Boston, MA 402 420,000 Cambridge Center Marriott, Cambridge, MA 431 330,400 Residence Inn by Marriott, Cambridge, MA 221 187,474 ------ --------- Total Hotel Properties 1,054 937,874 ====== ========= STRUCTURED PARKING NUMBER OF SQUARE SPACES FEET --------- ------ Total Structured Parking 17,645 6,017,423 ======== ========= (1) Includes retail square footage of approximately 1,000,000. (2) Includes 344,119 square feet at 265 Franklin Street which is 35% owned by Boston Properties and 380,987 square feet at 140 Kendrick Street which is 25% owned by Boston Properties. (3) Includes 410,308 square feet at One Freedom Square which is 25% owned by Boston Properties, 587,217 square feet at Metropolitan Square which is 51% owned by Boston Properties, and 401,279 square feet at Market Square North which is 50% owned by Boston Properties. 16
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PROPERTY LISTING AS OF DECEMBER 31, 2001 ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- ---------- ----------- ---------- ----------- GREATER BOSTON Office The Prudential Center CBD Boston MA 3 2,152,059 94.5% $37.60 265 Franklin Street (35% ownership) CBD Boston MA 1 344,119 46.5% 56.82 One Cambridge Center East Cambridge MA 1 215,385 96.5% 42.05 Three Cambridge Center East Cambridge MA 1 107,484 100.0% 25.65 Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 29.77 Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 33.87 Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 40.71 University Place Mid-Cambridge MA 1 195,282 100.0% 32.78 Reservoir Place Route 128 Mass Turnpike MA 1 522,450 85.0% 34.19 204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 100.0% 28.13 140 Kendrick Street (25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 27.20 170 Tracer Lane Route 128 Mass Turnpike MA 1 73,203 55.1% 34.60 Waltham Office Center Route 128 Mass Turnpike MA 3 131,479 90.4% 29.92 195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 46.01 200 West Street Route 128 Mass Turnpike MA 1 248,048 92.5% 31.97 10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 81.9% 32.02 Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 21.39 32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 28.94 91 Hartwell Avenue Route 128 Northwest MA 1 122,135 76.2% 33.86 92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0% 21.74 100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 32.20 33 Hayden Avenue Route 128 Northwest MA 1 79,564 100.0% 24.89 Lexington Office Park Route 128 Northwest MA 2 167,293 93.5% 30.97 191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 32.32 181 Spring Street Route 128 Northwest MA 1 53,595 100.0% 35.47 201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 32.10 40 Shattuck Road Route 128 Northwest MA 1 119,499 83.3% 25.23 Quorum Office Park Route 128 Northwest MA 2 259,918 100.0% 16.98 Newport Office Park Route 128 South MA 1 168,829 100.0% 23.87 --------------------------------------------------------------- 38 6,523,103 91.7% $33.59 --------------------------------------------------------------- Office/Technical Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0% 19.32 Bedford Business Park Route 128 Northwest MA 2 383,704 100.0% 13.18 17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 10.25 164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 9.31 --------------------------------------------------------------- 5 545,206 100.0% $13.32 --------------------------------------------------------------- Industrial 40-46 Harvard Street Route 128 Southwest MA 1 169,273 89.8% $7.49 --------------------------------------------------------------- Total Greater Boston: 44 7,237,582 92.3% ============================================ 17
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PROPERTY LISTING AS OF DECEMBER 31, 2001 ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- ---------- ----------- ---------- ----------- GREATER WASHINGTON, DC Office 2300 N Street West End Washington DC 1 276,930 98.7% $52.45 One Independence Square Southwest Washington DC 1 337,794 100.0% 40.51 Two Independence Square Southwest Washington DC 1 579,665 100.0% 37.96 Capital Gallery Southwest Washington DC 1 396,894 100.0% 35.28 500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 32.10 Metropolitan Square (51% ownership) East End Washington DC 1 587,217 96.9% 35.34 1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.30 Market Square North (50% ownership) East End Washington DC 1 401,279 100.0% 42.23 Sumner Square CBD Washington DC 1 207,620 99.8% 32.69 Decoverly Two Montgomery County MD 1 77,747 100.0% 23.15 Decoverly Three Montgomery County MD 1 77,040 100.0% 24.53 Democracy Center Montgomery County MD 3 681,427 88.8% 27.53 Montvale Center Montgomery County MD 1 120,823 100.0% 22.21 2600 Tower Oaks Boulevard Montgomery County MD 1 178,899 70.3% 30.82 Orbital Sciences Campus Loudoun County 3 337,228 100.0% 22.71 The Arboretum Fairfax County VA 1 95,584 100.0% 25.95 One Freedom Square (25% ownership) Fairfax County VA 1 410,308 100.0% 33.05 One Reston Overlook Fairfax County VA 1 312,685 100.0% 21.44 Two Reston Overlook Fairfax County VA 1 131,594 100.0% 32.31 New Dominion Technology Park Fairfax County VA 1 235,201 100.0% 27.12 Reston Corporate Center Fairfax County VA 2 261,046 100.0% 31.09 Lockheed Martin Building Fairfax County VA 1 255,244 100.0% 41.67 NIMA Building Fairfax County VA 1 263,870 100.0% 45.57 ----------------------------------------------------------------- 28 6,657,222 97.7% $33.83 --------------------------------------------------------------- Office/Technical Fullerton Square Fairfax County VA 2 179,453 95.5% $13.41 Sugarland Business Park, Building One Fairfax County VA 1 52,797 100.0% 22.53 Sugarland Business Park, Building Two Fairfax County VA 1 59,215 100.0% 21.87 7435 Boston Boulevard Fairfax County VA 1 103,557 100.0% 14.99 7451 Boston Boulevard Fairfax County VA 1 47,001 76.7% 12.67 7450 Boston Boulevard Fairfax County VA 1 62,402 100.0% 16.77 7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.90 8000 Grainger Court Fairfax County VA 1 90,465 100.0% 13.67 7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.21 7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 23.49 7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 14.28 7600 Boston Boulevard Fairfax County VA 1 69,832 100.0% 15.53 7375 Boston Boulevard Fairfax County VA 1 26,865 87.1% 15.73 8000 Corporate Court Fairfax County VA 1 52,539 100.0% 9.49 7700 Boston Boulevard Fairfax County VA 1 82,224 100.0% 19.98 ----------------------------------------------------------------- 16 1,143,148 98.0% $16.06 ----------------------------------------------------------------- ---------------------------------------------- Total Greater Washington: 44 7,800,370 97.8% ============================================== 18
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PROPERTY LISTING AS OF DECEMBER 31, 2001 ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- ---------- ----------- ---------- ----------- MIDTOWN MANHATTAN Office 599 Lexington Avenue Park Avenue NY 1 1,000,995 100.0% $56.18 280 Park Avenue Park Avenue NY 1 1,166,777 100.0% 49.82 Citigroup Center Park Avenue NY 1 1,577,564 99.5% 53.73 875 Third Avenue East Side NY 1 708,928 99.7% 50.19 ----------------------------------------------------------------- Total Midtown Manhattan: 4 4,454,264 99.8% $52.69 ================================================================= PRINCETON/EAST BRUNSWICK, NJ Office 101 Carnegie Center Princeton NJ 1 123,659 100.0% $26.76 104 Carnegie Center Princeton NJ 1 102,830 100.0% 30.35 105 Carnegie Center Princeton NJ 1 69,648 100.0% 28.19 201 Carnegie Center Princeton NJ - 6,500 100.0% 23.79 202 Carnegie Center Princeton NJ 1 128,705 100.0% 29.03 210 Carnegie Center Princeton NJ 1 161,112 100.0% 29.24 211 Carnegie Center Princeton NJ 1 47,025 100.0% 24.09 212 Carnegie Center Princeton NJ 1 144,105 84.5% 30.86 214 Carnegie Center Princeton NJ 1 152,214 93.4% 28.56 206 Carnegie Center Princeton NJ 1 161,763 100.0% 27.51 302 Carnegie Center Princeton NJ 1 64,677 76.8% 32.88 502 Carnegie Center Princeton NJ 1 116,374 95.3% 28.04 510 Carnegie Center Princeton NJ 1 234,160 100.0% 24.81 504 Carnegie Center Princeton NJ 1 121,990 100.0% 28.28 506 Carnegie Center Princeton NJ 1 133,160 30.1% 29.08 508 Carnegie Center Princeton NJ 1 131,085 100.0% 24.78 One Tower Center East Brunswick NJ 1 409,815 71.6% 30.88 ----------------------------------------------------------------- Total Princeton/East Brunswick, NJ: 16 2,308,822 88.6% $28.28 ================================================================= GREATER SAN FRANCISCO Office Embarcadero Center One CBD San Francisco CA 1 833,721 95.4% $41.14 Embarcadero Center Two CBD San Francisco CA 1 779,281 89.4% 45.18 Embarcadero Center Three CBD San Francisco CA 1 773,516 97.3% 41.18 Embarcadero Center Four CBD San Francisco CA 1 935,745 94.9% 60.50 Federal Reserve CBD San Francisco CA 1 149,592 100.0% 47.14 West Tower CBD San Francisco CA 1 473,738 98.9% 49.22 The Gateway South San Francisco CA 2 506,204 91.3% 36.67 ----------------------------------------------------------------- 8 4,451,797 94.6% $46.51 ----------------------------------------------------------------- Office/Technical ----------------------------------------------------------------- Hilltop Office Center South San Francisco CA 9 144,366 89.0% $15.14 ----------------------------------------------------------------- Industrial 560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 10.19 430 Rozzi Place South San Francisco CA 1 20,000 100.0% 11.38 2391 West Winton Hayward CA 1 220,213 72.8% 4.72 ----------------------------------------------------------------- 3 280,213 78.6% $6.32 ----------------------------------------------------------------- Total Greater San Francisco: 20 4,876,376 93.5% ============================================== 19
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PROPERTY LISTING AS OF DECEMBER 31, 2001 ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- ---------- ----------- ---------- ----------- BALTIMORE, MD Office Candler Building Baltimore MD 1 539,306 99.5% $18.40 100 East Pratt Street Baltimore MD 1 635,323 98.9% 31.39 ----------------------------------------------------------------- Total Baltimore, MD: 2 1,174,629 99.2% $25.41 ================================================================= RICHMOND, VA Office Riverfront Plaza Richmond VA 1 899,604 98.4% $23.32 ================================================================= BUCKS COUNTY, PA Industrial 38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $4.32 ================================================================= Total In-Service Properties: 132 28,912,647 95.3% ================================================ 20
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 TOP 20 TENANTS BY SQUARE FEET LEASED TENANT SQ. FT. % OF PORTFOLIO - ------------------------------------ ---------- ------------------ 1 U.S. Government 2,294,441 7.94% 2 Lockheed Martin Corporation 716,653 2.48% 3 Citigroup 639,971 2.21% 4 Gillette Company 488,177 1.69% 5 Shearman & Sterling 436,358 1.51% 6 Parametric Technology Corp. (1) 380,987 1.32% 7 Washington Group International 365,245 1.26% 8 Deutsche Bank 346,617 1.20% 9 Orbital Sciences Corporation 337,228 1.17% 10 First Union 325,396 1.13% 11 Hunton & Williams 322,829 1.12% 12 TRW, Inc. 317,921 1.10% 13 T. Rowe Price Associates, Inc. 304,129 1.05% 14 Marsh USA Inc. 299,236 1.03% 15 Digitas 279,182 0.97% 16 Accenture (1) 265,622 0.92% 17 Tellabs Operations, Inc. 259,918 0.90% 18 Covance, Inc. 258,831 0.90% 19 John Hancock Advisors 233,516 0.81% 20 Kirkland & Ellis (2) 229,832 0.79% MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT TENANT SQ. FT. - ------------------------------------ ---------- Ernst & Young 1,062,203 Andersen 620,947 (1) These tenants occupy space in properties in which Boston Properties has a 25% interest. (2) Includes 144,222 sf of space in a property in which Boston Properties has a 51% interest. 21
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 PORTFOLIO OVERVIEW - FFO PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS (1) FOR IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED DECEMBER 31, 2001 Office/ Geographic Area Office (2) Technical Industrial Hotel Total - --------------- ---------- --------- ---------- ----- ----- Greater Boston 20.5% 0.9% 0.1% 3.2% 24.7% Greater Washington 20.9% 1.9% - - 22.8% Greater San Francisco 18.9% 0.2% 0.2% - 19.3% Midtown Manhattan 22.6% - - - 22.6% Princeton/East Brunswick, NJ 5.3% - - - 5.3% Baltimore, MD 3.1% - - - 3.1% Richmond, VA 2.2% - - - 2.2% Bucks County, PA - - 0.1% - 0.1% ---- --- --- --- ----- Total 93.5% 3.0% 0.4% 3.2% 100.0% ==== === === === ===== (1) 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. (2) Includes Retail Center FFO (Prudential Center and Embarcadero Center). 22
BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 OCCUPANCY ANALYSIS SAME PROPERTY OCCUPANCY - BY LOCATION Location 31-Dec-01 31-Dec-00 - -------- --------- --------- Greater Boston 94.2% 99.2% Greater Washington 98.2% 98.6% Midtown Manhattan 99.9% 99.9% Baltimore, MD 99.2% 99.8% Princeton/East Brunswick, NJ 89.0% 98.7% Richmond, VA 98.4% 100.0% Greater San Francisco 93.5% 97.9% Bucks County, PA 100.0% 100.0% --------- --------- Total Portfolio 95.8% 98.9% ========= ========= SAME PROPERTY - BY TYPE OF PROPERTY 31-Dec-01 31-Dec-00 --------- --------- Total Office Portfolio 95.8% 99.0% Total Office/Technical Portfolio 97.9% 98.0% Total Industrial Portfolio 87.3% 96.9% --------- --------- Total Portfolio 95.8% 98.9% ========= ========= 23 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE OFFICE PROPERTIES LEASE EXPIRATIONS 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 - ------------- ------------------ ------------------ -------------------- -------------------- 2002 1,036,565 $38,537,952 $38,537,952 4.09% 2003 1,706,651 57,997,025 59,350,625 6.74% 2004 2,617,925 97,079,137 98,858,839 10.34% 2005 2,410,523 84,992,402 88,940,211 9.52% 2006 3,542,412 139,495,488 146,830,082 13.99% 2007 1,950,711 72,358,386 73,762,026 7.70% 2008 1,273,596 51,013,523 51,681,142 5.03% 2009 2,117,841 76,219,088 85,690,403 8.36% 2010 1,090,480 48,309,101 55,249,102 4.31% 2011 2,154,657 79,478,468 93,243,476 8.51% Thereafter 4,180,317 171,383,106 203,747,454 16.51% OCCUPANCY BY LOCATION 31-Dec-01 31-Dec-00 --------- --------- Greater Boston 91.7% 99.2% Greater Washington 97.7% 99.0% Midtown Manhattan 99.8% 99.9% Baltimore, MD 99.2% 99.6% Richmond, VA 98.4% 100.0% Princeton/East Brunswick, NJ 88.6% 98.5% Greater San Francisco 94.6% 98.4% Bucks County, PA n/a n/a --------- --------- Total Office Portfolio 95.4%* 99.1%* ========= ========= * Includes approximately 1,000,000 of retail square footage. 24 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE OFFICE/TECHNICAL PROPERTIES LEASE EXPIRATIONS 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 - ------------- ------------------ ------------------ -------------------- -------------------- 2002 351,980 $5,229,210 $5,229,210 19.21% 2003 89,758 1,435,957 1,473,948 4.90% 2004 84,867 1,330,398 1,432,369 4.63% 2005 162,809 2,115,905 2,281,671 8.88% 2006 324,598 4,141,635 4,550,620 17.71% 2007 224,182 3,820,980 4,111,036 12.23% 2008 - - - - 2009 - - - - 2010 79,971 1,136,750 1,136,750 4.36% 2011 137,321 2,366,101 2,566,101 7.49% Thereafter 320,058 5,560,725 6,465,790 17.46% OCCUPANCY BY LOCATION 31-Dec-01 31-Dec-00 --------- --------- Greater Boston 100.0% 100.0% Greater Washington 98.0% 96.9% Midtown Manhattan 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 89.0% 99.2% Bucks County, PA n/a n/a --------- --------- Total Office/Technical Portfolio 97.9% 98.0% ========= ========= 25 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE INDUSTRIAL PROPERTIES LEASE EXPIRATIONS 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 - ------------- ------------------ ------------------ -------------------- -------------------- 2002 184,904 $ 904,066 $ 904,066 30.29% 2003 128,105 930,042 930,042 20.98% 2004 200,213 1,163,249 1,220,900 32.80% 2005 - - - - 2006 - - - - 2007 20,000 227,568 258,279 3.28% 2008 - - - - 2009 - - - - 2010 - - - - 2011 - - - - Thereafter - - - - OCCUPANCY BY LOCATION 31-Dec-01 31-Dec-00 --------- --------- Greater Boston 89.8% 93.0% Greater Washington n/a 90.1% Midtown Manhattan 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 78.6% 100.0% Bucks County, PA 100.0% 100.0% --------- --------- Total Industrial Portfolio 87.3% 95.9% ========= ========= 26 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE RETAIL PROPERTIES LEASE EXPIRATIONS 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 - ------------- ------------------ ------------------ -------------------- -------------------- 2002 89,363 $6,630,724 $6,671,265 7.78% 2003 204,733 6,012,458 6,110,981 17.83% 2004 109,693 6,321,854 6,470,830 9.55% 2005 93,042 3,707,638 3,879,005 8.10% 2006 76,708 3,486,109 3,586,972 6.68% 2007 47,118 2,464,627 2,670,199 4.10% 2008 44,581 2,138,967 2,286,522 3.88% 2009 37,312 1,428,832 1,550,484 3.25% 2010 94,932 2,807,570 3,940,051 8.27% 2011 41,124 2,519,991 2,850,451 3.58% Thereafter 309,786 10,875,748 12,468,678 26.98% 27 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES LEASE EXPIRATION 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 - ------------- ------------------ ------------------ -------------------- -------------------- 2002 1,662,812 $ 51,301,952 $ 51,342,493 5.75% 2003 2,129,247 66,375,482 67,865,596 7.36% 2004 3,012,698 105,894,638 107,982,938 10.42% 2005 2,666,374 90,815,945 95,100,887 9.22% 2006 3,943,718 147,123,232 154,967,674 13.64% 2007 2,242,011 78,871,561 80,801,540 7.75% 2008 1,318,177 53,152,490 53,967,664 4.56% 2009 2,155,153 77,647,920 87,240,887 7.45% 2010 1,265,383 52,253,421 60,325,903 4.38% 2011 2,333,102 84,364,560 98,660,028 8.07% Thereafter 4,810,161 187,819,579 222,681,922 16.64% OCCUPANCY BY LOCATION 31-Dec-01 31-Dec-00 --------- --------- Greater Boston 92.3% 99.0% Greater Washington 97.8% 98.4% Midtown Manhattan 99.8% 99.9% Baltimore, MD 99.2% 99.6% Richmond, VA 98.4% 100.0% Princeton/East Brunswick, NJ 88.6% 98.5% Greater San Francisco 93.5% 98.5% Bucks County, PA 100.0% 100.0% --------- --------- Total Portfolio 95.3% 98.9% ========= ========= 28 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE GREATER BOSTON PROPERTIES LEASE EXPIRATIONS GREATER BOSTON OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 283,499 $ 9,296,254 $ 9,296,254 64,140 $ 596,944 $ 596,944 2003 506,250 15,349,375 16,479,593 - - - 2004 697,561 25,498,035 26,492,281 - - - 2005 945,631 35,462,680 36,558,473 - - - 2006 589,681 20,533,244 21,926,302 253,704 3,064,298 3,344,121 2007 254,834 9,371,707 10,218,368 80,000 1,060,641 1,283,141 2008 80,965 2,448,596 2,472,218 - - - 2009 924,497 31,793,021 35,740,935 - - - 2010 145,404 5,507,082 6,251,807 - - - 2011 356,358 7,432,786 8,500,125 80,000 1,569,091 1,769,091 Thereafter 616,200 18,573,984 22,593,218 67,362 1,301,511 1,608,008 INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 23,904 $208,316 $208,316 39,353 $4,407,642 $4,434,966(1) 2003 128,105 930,042 930,042 165,438 4,079,119 4,091,119 2004 - - - 71,761 4,729,129 4,829,147 2005 - - - 58,116 2,024,800 2,109,425 2006 - - - 32,525 1,627,838 1,670,997 2007 - - - - - - 2008 - - - 5,466 420,253 420,253 2009 - - - - - - 2010 - - - 37,110 715,563 1,494,873 2011 13,349 796,979 845,479 Thereafter - - - 210,978 6,283,962 6,459,261 (1) Includes $1,260,000 (at expiration) of annual revenue from Prudential Center retail kiosks for which there is zero square footage assigned. 29 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE GREATER WASHINGTON PROPERTIES LEASE EXPIRATIONS GREATER WASHINGTON OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 193,617 $ 5,520,688 $ 5,520,688 247,754 $4,079,816 $4,079,816 2003 138,841 3,563,205 3,716,576 54,894 878,650 901,098 2004 505,276 16,693,606 17,048,801 74,667 1,150,230 1,217,161 2005 465,639 15,703,834 17,182,585 131,290 1,657,193 1,785,894 2006 933,035 37,360,999 39,658,594 64,394 970,789 1,088,191 2007 546,997 20,112,394 17,395,697 144,182 2,760,339 2,827,895 2008 399,355 16,055,347 12,695,839 - - - 2009 433,461 14,618,363 16,173,691 - - - 2010 432,556 16,108,103 19,351,631 79,971 1,136,750 1,136,750 2011 955,927 27,462,978 33,200,586 57,321 797,010 797,010 Thereafter 1,404,939 45,934,046 53,451,811 252,696 4,259,214 4,857,782 INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 - $- $- 6,009 $239,480 $ 239,480 2003 - - - - - - 2004 - - - 9,960 237,259 248,402 2005 - - - 3,188 96,069 97,409 2006 - - - 3,309 110,487 110,971 2007 - - - 11,439 198,763 204,998 2008 - - - 16,338 561,135 656,226 2009 - - - 2,996 - - 2010 - - - 16,553 368,565 434,332 2011 11,221 446,987 515,650 Thereafter - - - 25,030 659,699 1,023,499 30 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES LEASE EXPIRATIONS GREATER SAN FRANCISCO OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 231,287 $ 9,216,525 $ 9,216,525 40,086 $552,450 $552,450 2003 627,800 26,316,339 26,338,486 34,864 557,307 572,850 2004 729,037 31,910,253 32,100,473 10,200 180,168 215,208 2005 293,739 13,344,981 14,006,878 31,519 458,712 495,777 2006 926,990 43,336,624 45,503,753 6,500 106,548 118,308 2007 413,359 18,000,397 19,346,493 - - - 2008 155,420 6,515,850 6,712,434 - - - 2009 234,997 9,949,982 10,544,558 - - - 2010 103,266 6,813,543 8,119,831 - - - 2011 192,689 17,377,325 17,869,919 Thereafter 20,178 736,656 1,246,572 - - - INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 - $ - $ - 36,967 $1,814,377 $1,826,065 2003 - - - 31,454 1,428,846 1,487,984 2004 200,213 1,163,249 1,220,900 21,989 1,033,887 1,050,496 2005 - - - 26,823 1,167,095 1,208,373 2006 - - - 18,042 852,955 869,660 2007 20,000 227,568 258,279 17,990 965,108 1,044,866 2008 - - - 19,545 1,005,853 1,041,775 2009 - - - 34,316 1,428,832 1,550,484 2010 - - - 30,749 1,266,291 1,440,089 2011 3,474 179,498 216,021 Thereafter - - - 17,735 1,232,815 1,318,174 31 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE MIDTOWN MANHATTAN PROPERTIES LEASE EXPIRATIONS MIDTOWN MANHATTAN OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 207,360 $ 11,633,013 $ 11,633,013 - $- $- 2003 141,831 5,692,905 5,692,905 - - - 2004 162,695 8,812,604 8,888,756 - - - 2005 82,289 4,094,276 4,131,285 - - - 2006 274,256 14,911,993 15,214,023 - - - 2007 177,449 9,623,829 10,007,948 - - - 2008 429,897 22,222,426 25,234,559 - - - 2009 253,681 13,232,448 15,410,207 - - - 2010 250,022 15,140,565 16,371,671 - - - 2011 390,124 19,560,314 25,126,599 Thereafter 1,950,251 100,727,163 120,613,677 - - - INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 - $- $- 1,010 $ 57,560 $ 59,089 2003 - - - 3,865 418,278 442,758 2004 - - - 3,800 245,514 266,293 2005 - - - 2,819 329,038 364,900 2006 - - - 15,992 669,169 709,684 2007 - - - 10,989 1,055,463 1,160,042 2008 - - - 3,232 151,726 168,268 2009 - - - - - - 2010 - - - 9,895 442,655 551,880 2011 13,080 1,096,527 1,273,301 Thereafter - - - 56,043 2,699,272 3,667,744 32 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES LEASE EXPIRATIONS PRINCETON/EAST BRUNSWICK OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 12,427 $ 365,877 $ 365,877 - $- $- 2003 114,485 3,184,048 3,184,048 - - - 2004 400,103 11,476,019 11,532,120 - - - 2005 228,370 6,737,044 6,846,115 - - - 2006 89,754 2,837,120 3,001,737 - - - 2007 477,968 12,487,077 13,853,307 - - - 2008 - - - - - - 2009 143,485 4,210,166 4,827,932 - - - 2010 145,675 4,588,490 5,002,844 - - - 2011 254,941 7,537,877 8,410,197 Thereafter 184,089 5,318,057 5,701,203 - - - INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 - $- $- - $- $- 2003 - - - - - - 2004 - - - - - - 2005 - - - - - - 2006 - - - - - - 2007 - - - - - - 2008 - - - - - - 2009 - - - - - - 2010 - - - - - - 2011 Thereafter - - - - - - 33 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 IN-SERVICE OTHER PROPERTIES LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA) OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 108,375 $ 2,505,595 $ 2,505,595 - $- $- 2003 177,444 3,891,153 3,939,017 - - - 2004 123,253 2,688,620 2,796,408 - - - 2005 394,855 9,649,587 10,214,875 - - - 2006 728,696 20,515,508 21,525,673 - - - 2007 80,104 2,762,982 2,940,213 - - - 2008 207,959 3,771,304 4,566,092 - - - 2009 127,720 2,415,108 2,993,080 - - - 2010 13,557 151,318 151,318 - - - 2011 4,618 107,188 136,050 Thereafter 4,660 93,200 140,973 - - - INDUSTRIAL RETAIL ---------------------------------------------------------- ---------------------------------------------------------- Annualized Annualized Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 161,000 $695,750 $695,750 6,024 $111,665 $111,665 2003 - - - 3,976 86,215 89,120 2004 - - - 2,183 76,065 76,492 2005 - - - 2,096 90,636 98,898 2006 - - - 6,840 225,660 225,660 2007 - - - 6,700 245,293 260,293 2008 - - - - - - 2009 - - - - - - 2010 - - - 625 14,496 18,877 2011 Thereafter - - - - - - 34 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 HOTEL PERFORMANCE SAME PROPERTY HOTELS LONG WHARF MARRIOTT - BOSTON Fourth Quarter Fourth Quarter Percent YTD YTD Percent 2001 2000 Change 2001 2000 Change -------------- -------------- -------- ------- -------- ------- Occupancy 78.8% 85.2% -7.5% 81.0% 89.3% -9.3% Average Daily Rate $197.81 $279.79 -29.3% $227.42 $260.39 -12.7% REVPAR $155.82 $238.24 -34.6% $184.21 $232.53 -20.8% CAMBRIDGE CENTER MARRIOTT Fourth Quarter Fourth Quarter Percent YTD YTD Percent 2001 2000 Change 2001 2000 Change -------------- -------------- ------- ------- ------- ------- Occupancy 65.6% 81.8% -19.8% 76.7% 85.9% -10.7% Average Daily Rate $182.81 $223.81 -18.3% $191.24 $209.98 -8.9% REVPAR $119.93 $183.03 -34.5% $146.68 $180.37 -18.7% RESIDENCE INN BY MARRIOTT Fourth Quarter Fourth Quarter Percent YTD YTD Percent 2001 2000 Change 2001 2000 Change -------------- -------------- -------- -------- -------- ------- Occupancy 82.9% 88.7% -6.5% 87.1% 91.6% -4.9% Average Daily Rate $136.39 $179.29 -23.9% $154.77 $172.56 -10.3% REVPAR $113.07 $159.08 -28.9% $134.80 $158.06 -14.7% TOTAL SAME PROPERTY HOTEL PERFORMANCE Fourth Quarter Fourth Quarter Percent YTD YTD Percent 2001 2000 Change 2001 2000 Change -------------- -------------- --------- --------- -------- ------- Occupancy 74.3% 84.5% -12.1% 80.5% 88.4% -8.9% Average Daily Rate $178.80 $235.83 -24.2% $197.39 $221.36 -10.8% REVPAR $132.18 $199.07 -33.6% $158.50 $195.59 -19.0% 35 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 SAME PROPERTY PERFORMANCE OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES Office Office/Technical Industrial Hotel Total ------ ---------------- ---------- ----- ----- Number of Properties 84 30 5 3 122 Square feet 22,746,796 1,832,720 610,486 937,874 26,127,876 Percent of in-service properties 86.6% 96.8% 100.0% 100.0% 89.8% Occupancy @ 12/31/00 99.0% 98.0% 96.9% - 98.9% Occupancy @ 12/31/01 95.8% 97.9% 87.3% - 95.8% Percent change from 4th quarter 2001 over 4th quarter 2000 Revenue 5.2% 10.5% -7.2% -15.8% 4.5% Expense 8.3% 8.3% 6.4% 11.3% 8.3% Net Operating Income 3.8% 11.1% -10.8% -20.3% 2.8% SAME PROPERTY LEASE ANALYSIS - DECEMBER 31, 2001 Office Office/Technical Industrial Total ------ ---------------- ---------- ----- Vacant space available @10/01/01 (sf) 928,843 48,623 77,264 1,054,730 Square footage of leases expiring or terminated 10/01/01-12/31/01 720,563 181,068 - 901,631 ------------ ---------- --------- ------------ Total space for lease (sf) 1,649,406 229,691 77,264 1,956,361 ============ ========== ========= ============ New tenants (sf) 273,164 79,549 - 352,713 Renewals (sf) 222,877 111,731 - 334,608 ------------ ---------- --------- ------------ Total space leased (sf) 496,041 191,280 - 687,321 ============ ========== ========= ============ Space available @ 12/31/01 (sf) 1,153,365 38,411 77,264 1,269,040 ============ ========== ========= ============ Net increase (decrease) in leased space (sf) (224,522) 10,212 - (214,310) Average lease term (months) 67 70 - 68 2nd generation TI/Comm PSF $ 7.97 $ 3.59 $ - $ 6.76 Increase in 2nd generation net rents (1) 55.5% 13.2% - 51.2% (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.) 36 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 ALL IN-SERVICE PROPERTIES - QUARTER ENDED DECEMBER 31, 2001 Office Office/Technical Industrial Total ------ ---------------- ---------- ----- Vacant space available @ 10/01/01 (sf) 1,132,670 48,623 77,264 1,258,557 Square footage of leases expiring or terminated 10/01/01-12/31/01 727,268 181,068 - 908,336 ------------ ---------- --------- ------------ Total space for lease (sf) 1,859,938 229,691 77,264 2,166,893 ============ ========== ========= ============ New tenants (sf) 406,995 79,549 - 486,544 Renewals (sf) 222,877 111,731 - 334,608 ------------ ---------- --------- ------------ Total space leased (sf) 629,872 191,280 - 821,152(2) ============ ========== ========= ============ Space available @ 12/31/01 (sf) 1,230,066 38,411 77,264 1,345,741 ============ ========== ========= ============ Net increase/(decrease) in leased space (sf) (97,396) 10,212 - (87,184) Average lease term (months) 98 70 - 92 2nd generation TI/Comm PSF $8.14 $3.59 $ - $6.88 Increase in 2nd generation net rents (1) 55.5% 13.2% - 51.2% (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). (2) Total space leased of 821,152 SF equals 129,959 SF 1st generation and 691,183 SF 2nd generation. 37 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS HISTORICAL CAPITAL EXPENDITURES (IN THOUSANDS) YTD 2001 Q4 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999 1998 1997 -------- ------- ------- ------- ------- ------- ------- ------ ------ Recurring capital expenditures $11,770 $3,298 $2,309 $3,425 $2,738 $11,201 $11,611 $3,543 $1,125 ======= ======= ======= ======= ======= ======= ======= ====== ====== Hotel improvements, equipment upgrades and replacements $ 7,935 $ 496 $1,089 $4,069 $2,281 $ 5,697 $ 2,346 $3,872 $2,625 ======= ======= ======= ======= ======= ======= ======= ====== ====== 2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS YTD 2001 Q4 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999 1998 1997 -------- ------- ------- ------- ------- ------- ------- ------ ------ Office Square feet 2,394,291 499,913 832,960 497,756 563,662 2,913,599 2,115,281 648,291 1,016,427 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Tenant improvement and lease commissions p.s.f. $17.47 $ 8.14 $ 28.15 $ 12.06 $ 14.72 $13.82 $ 10.60 $ 9.82 $ 10.83 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Office/Technical Square feet 348,178 191,280 111,915 10,696 34,287 694,536 167,231 113,428 169,878 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Tenant improvement and lease commissions p.s.f. $3.13 $ 3.59 $ 2.30 $ 3.34 $ 3.19 $ 2.95 $ 1.94 $ 3.32 $ 2.22 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Industrial Square feet - - - - - 209,125 163,962 320,608 258,795 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Tenant improvement and lease commissions p.s.f. $ - $ - $ - $ - $ - $ 1.38 $ 0.60 $ 1.13 $ 0.99 ---------- -------- -------- -------- -------- ---------- ---------- -------- ---------- Average tenant improvement and lease commission p.s.f. $ 15.65 $ 6.88 $ 25.09 $ 11.88 $ 14.05 $ 11.16 $ 9.34 $ 6.57 $ 8.06 ========== ======== ======== ======== ======== ========== ========== ======== ========== 38 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS AS OF DECEMBER 31, 2001 ACQUISITIONS Anticipated Initial Future Total Current Property Date Acquired Square Feet Investment Investment Investment Occupancy - -------- ------------- ----------- ---------- ------------ ------------ --------- 77 Fourth Avenue - land Feb-01 n/a $ 13,000,000 $ - $ 13,000,000 n/a Citigroup Center Apr-01 1,577,564 755,000,000 - 755,000,000 99% Reston Eastgate - land Dec-01 n/a 8,600,000 8,600,000 n/a Intersection Route 20/128 - land Dec-01 n/a 18,000,000 - 18,000,000 n/a ----------- ------------ ----------- ------------ --------- TOTAL VALUE CREATION PIPELINE - 1,577,564 $794,600,000 $ - $794,600,000 99% ACQUISITIONS =========== ============ =========== ============ ========= DISPOSITIONS Net Property Date Disposed Square Feet Net Proceeds Book Value Gain - -------- ------------- ----------- ------------ ---------- ----------- 25-33 Dartmouth Street Mar-01 78,045 $ 6,612,676 $ 811,158 $ 5,801,518 Maryland Industrial Park, Bldgs. 2&3 Jun-01 183,945 7,574,494 5,297,462 2,277,032 Belvedere Condominium/Retail Land Dec-01 n/a 11,034,319 8,225,829 2,808,490 ----------- ------------ ----------- ----------- TOTAL DISPOSITIONS 261,990 $25,221,489 $14,334,449 $10,887,040 =========== ============ =========== =========== 39 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS AS OF DECEMBER 31, 2001 Anticipated Current Initial Stabilization # of Square Investment Total Percentage Development Properties Occupancy Date Location Buildings feet to Date Investment(1) Leased - ---------------------- --------- ---- -------- --------- ---- ------- ---------- ------ 111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1 859,484 $ 276,916,812 $ 290,000,000 95% 111 Huntington Avenue - retail Q3 2001 Q3 2002 Boston, MA - 93,789 n/a n/a 61% One and Two Discovery Square (50% ownership) Q4 2001 Q1 2003 Reston, VA 2 363,995 29,644,317 41,204,000(2) 65% ITT Educational Services Q1 2002 Q1 2002 Springfield, VA 1 32,114 3,785,788 5,740,000 100% 5 Times Square Q1 2002 Q2 2002 New York, NY 1 1,099,154 418,364,009 536,115,000 100% Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA 1 304,051 56,510,296 95,446,000 19% Broad Run Business Park - Building E Q2 2002 Q4 2002 Dulles, VA 1 127,226 11,904,194 19,946,000 55% 7702 Boston Boulevard Q3 2002 Q3 2002 Springfield, VA 1 43,171 1,575,806 7,286,000 100% Two Freedom Square (50% ownership) Q3 2002 Q3 2004 Reston, VA 1 401,891 28,251,897 49,336,000(2) 58% Shaws Supermarket Q2 2003 Q2 2003 Boston, MA 1 57,235 10,419,152 24,034,000 100% 611 Gateway Boulevard Q4 2003 Q1 2004 S.San Francisco, CA 1 249,732 43,491,261 81,221,000 0% Times Square Tower Q4 2003 Q2 2004 New York, NY 1 1,218,511 250,692,311 653,500,000 51% -- --------- -------------- -------------- ---- TOTAL DEVELOPMENT PROPERTIES 12 4,850,353 $1,131,555,843 $1,803,828,000 69% == ========= ============== ============== ==== DEVELOPMENTS PLACED-IN-SERVICE DURING 2001 Placed In Service Stabilization # of Square Investment Total Percentage Date Date Location Buildings feet to Date Investment Leased ------- ------------- -------- --------- ---- ------- ---------- ------ Class A Office Building 302 Carnegie Center Q1 2001 Q3 2002 Princeton, NJ 1 65,063 $ 9,806,104 $13,435,000 86% New Dominion Tech Park-Building 1 Q1 2001 Q1 2001 Herndon, VA 1 235,201 47,787,089 48,770,000 100% 40 Shattuck Road Q2 2001 Q3 2002 Andover, MA 1 119,499 14,647,729 17,057,000 83% 2600 Tower Oaks Boulevard Q2 2001 Q2 2002 Rockville, MD 1 178,899 33,891,974 38,295,000 80% Orbital Sciences Phase II-Building 2 Q3 2001 Q3 2001 Dulles, VA 1 160,502 28,308,867 29,900,000 100% Quorum Office Park-Building 1 Q3 2001 Q3 2001 Chelmsford, MA 1 129,959 16,991,394 19,442,000 100% Quorum Office Park-Building 2 Q3 2001 Q4 2001 Chelmsford, MA 1 129,959 16,594,736 19,442,000 100% -- --------- ------------ ------------ ----- TOTAL DEVELOPMENTS PLACED IN SERVICE 7 1,019,082 $168,027,893 $186,341,000 94% == ========= ============ ============ ===== (1) Includes net revenues during lease-up period and cash component of hedge contracts. (2) Represents 50% of the total anticipated project-level investment. 40 BOSTON PROPERTIES, INC. FOURTH QUARTER 2001 VALUE CREATION PIPELINE - OWNED LAND PARCELS AS OF DECEMBER 31, 2001 No. of Developable Location Parcels Acreage Square Feet - -------- ------- ------- ------------ Rockville, MD 4 92.3 986,000 Dulles, VA 2 76.6 937,000 Gaithersburg, MD 4 27.0 850,000 San Jose, CA 5 3.7 841,000 Reston, VA 3 26.7 861,000 Boston, MA 2 0.5 776,000 Washington, DC (1) 1 1.3 550,000 Marlborough, MA 1 50.0 400,000 Weston, MA 1 74.0 350,000 Herndon, VA 2 25.2 383,000 Waltham, MA 1 4.3 202,000 S. San Francisco, CA 1 3.0 121,000 Andover, MA 1 10.0 110,000 -- ----- --------- 28 394.6 7,367,000 == ===== ========= VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS AS OF DECEMBER 31, 2001 No. of Developable Location Parcels Acreage Square Feet - -------- ------- ------- ------------ Princeton, NJ (2) 14 149.9 1,900,000 Framingham, MA (3) 1 21.5 300,000 Cambridge, MA (4) 1 2.6 165,000 -- ----- ---------- 16 174.0 2,365,000 == ===== ========== (1) 25% interest in land through a joint venture. (2) $20.00/FAR plus an earnout calculation. (3) Subject to ground lease. (4) Prior to January 23, 2002 the cost will be $25.92/ SF of land area. Land area is approximately 108,000 SF. 41
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 (617) 520-7004 (617) 236-3300 Judith Sylk-Siegel - Media (212) 445-8431 BOSTON PROPERTIES, INC. ANNOUNCES FOURTH QUARTER 2001 RESULTS REPORTS DILUTED FFO PER SHARE OF $0.95 BOSTON, MA, JANUARY 22, 2002 - BOSTON PROPERTIES, INC. (NYSE: BXP) today reported results for the fourth quarter ended December 31, 2001. Funds from Operations (FFO) for the quarter ended December 31, 2001 were $90.7 million, or $1.00 per share basic and $0.95 per share diluted before an accounting charge related to the application of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" and net of early surrender lease income recognized and payments received. FFO for the fourth quarter of 2001 compares to FFO of $71.9 million, or $0.89 per share basic and $0.85 per share diluted for the quarter ended December 31, 2000. This represents a 11.8% quarter to quarter increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 90,736,578 and 105,577,393, respectively, for the quarter ended December 31, 2001 and 80,885,230 and 96,008,217, respectively, for the same quarter last year. FFO, as adjusted above, for the year ended December 31, 2001 were $337.8 million, or $3.75 per share basic and $3.57 per share diluted. FFO for the year ended 2001 compares to FFO of $247.4 million, or $3.46 per share basic and $3.31 per share diluted for the year ended December 31, 2000. This represents a 7.9% year to year increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding -MORE-
totaled 90,001,534 and 105,185,427, respectively, for the year ended December 31, 2001 and 71,424,207 and 85,723,101, respectively, for last year. Net income before the charge related to SFAS No. 133, gain on the sale of real estate, extraordinary item and cumulative effect of a change in accounting principle totaled $54.4 million or $0.59 per share diluted in the fourth quarter of 2001 as compared to $43.5 million or $0.52 per share diluted for the same period in 2000. This represents a 13.5% per share increase in diluted net income quarter over quarter. Net income, as adjusted per the preceding paragraph, totaled $220.6 million or $2.40 per share diluted for the year ended 2001 as compared to $147.0 million or $2.02 per share diluted for the same period in 2000. This represents a 18.8% per share increase in diluted net income year over 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 and year ended December 31, 2001. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. As of December 31, 2001, the Company's portfolio consisted of 147 properties comprising more than 40.7 million square feet, including 12 properties under development totaling 4.9 million square feet. The overall occupancy rate for the properties in service as of December 31, 2001 was 95.3%. Additional highlights of the fourth quarter include: o The refinancing of the mortgage loan collateralized by 10 & 20 Burlington Mall Road and 91 Hartwell Avenue on October 1, 2001. The new financing totaling $40.0 million bears interest at a fixed rate of 7.25% and matures in October 2011. o The completion of Building Two in the Quorum Office Park development project, an approximately 130,000 square foot office building in Chelmsford, Massachusetts. This project is 100% leased. o The repurchase of 78,900 shares of the Company's Common Stock at a cost of $2.7 million, with an average price per share of $34.46. o The acquisition of a 74-acre parcel of land in Weston, Massachusetts in December 2001 for approximately $18 million, which includes a deposit made in 2000 of approximately $9 million. This site will support an approximately 350,000 square foot Class A office building.
o The acquisition of an approximately 22-acre parcel of land in Reston, Virginia in November 2001 for approximately $8.6 million. This site will support an approximately 358,000 square foot Class A office building. o The disposition of a parcel of land known as the Belvedere Condominium/Retail Project located at the Prudential Center in Boston, Massachusetts for net proceeds of approximately $11 million. Boston Properties will conduct a conference call tomorrow, January 23, 2002 at 10:00 AM (Eastern Time) to discuss the results of this year's fourth quarter. The number to call for this interactive teleconference is (888) 413-4411. A replay of the conference call will be available through January 30, 2002 by dialing (888) 266-2086 and entering the passcode 5744949. Additionally, a copy of Boston Properties' fourth quarter 2001 "Supplemental Operating and Financial Data" will be available on the Investor section of the company's website at HTTP://WWW.BOSTONPROPERTIES.COM. These materials are also available by contacting Investor Relations at 617-236-3300 or by written request to: Investor Relations Boston Properties, Inc. 111 Huntington Avenue Boston, MA 02199 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 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 Year ended December 31, December 31, ----------------------------- ----------------------------- 2001 2000 2001 2000 ------------ ------------ ------------ ------------ (unaudited and in thousands, (unaudited and in thousands, except for per share amounts) except for per share amounts) Revenue Rental: Base rent $221,664 $183,319 $ 847,726 $715,358 Recoveries from tenants 26,966 23,736 107,883 92,692 Parking and other 11,757 12,797 52,001 50,892 ------------ ------------ ------------ ------------ Total rental revenue 260,387 219,852 1,007,610 858,942 Development and management services 3,878 3,405 13,190 11,837 Interest and other 1,829 5,270 12,178 8,574 ------------ ------------ ------------ ------------ Total revenue 266,094 228,527 1,032,978 879,353 ------------ ------------ ------------ ------------ Expenses Operating 83,611 67,335 312,294 264,701 General and administrative 8,663 9,791 38,312 35,659 Interest 59,730 50,854 223,389 217,064 Depreciation and amortization 40,230 36,088 150,163 133,150 Loss on investments in securities - - 6,500 - ------------ ------------ ------------ ------------ Total expenses 192,234 164,068 730,658 650,574 ------------ ------------ ------------ ------------ Income before net derivative losses, minority interests and income from unconsolidated joint ventures 73,860 64,459 302,320 228,779 Net derivative losses (2,080) - (26,488) - Minority interests in property partnerships 456 (250) 1,085 (932) Income from unconsolidated joint ventures 1,345 402 4,186 1,758 ------------ ------------ ------------ ------------ Income before minority interest in Operating Partnership 73,581 64,611 281,103 229,605 Minority interest in Operating Partnership (19,237) (19,472) (75,393) (76,039) ------------ ------------ ------------ ------------ Income before gain (loss) on sales of real estate 54,344 45,139 205,710 153,566 Gain (loss) on sales of real estate, net of minority interest 2,584 73 9,089 (234) ------------ ------------ ------------ ------------ Income before extraordinary loss 56,928 45,212 214,799 153,332 Extraordinary loss, net of minority interest - (334) - (334) ------------ ------------ ------------ ------------ Income before cumulative effect of a change in accounting principle 56,928 44,878 214,799 152,998 Cumulative effect of a change in accounting principle, net of minority interest - - (6,767) - ------------ ------------ ------------ ------------ Net income before preferred dividend 56,928 44,878 208,032 152,998 Preferred dividend (1,648) (1,643) (6,592) (6,572) ------------ ------------ ------------ ------------ Net income available to common shareholders $ 55,280 $ 43,235 $ 201,440 $146,426 ============ ============ ============ ============ Basic earnings per share: Income before gain on sales of real estate, extraordinary item and cumulative effect of a change in accounting principle $ 0.58 $ 0.53 $ 2.21 $ 2.05 Gain on sales of real estate, net of minority interest 0.03 0.10 - Extraordinary loss, net of minority interest - - - - Cumulative effect of a change in accounting principle, net of minority interest - - (0.07) - ------------ ------------ ------------ ------------ Net income available to common shareholders $ 0.61 $ 0.53 $ 2.24 $ 2.05 ============ ============ ============ ============ Weighted average number of common shares outstanding 90,737 80,885 90,002 71,424 ============ ============ ============ ============ Diluted earnings per share: Income before gain on sales of real estate, extraordinary item and cumulative effect of a change in accounting principle $ 0.57 $ 0.52 $ 2.16 $ 2.01 Gain on sales of real estate, net of minority interest 0.03 0.10 - Extraordinary loss, net of minority interest - - - - Cumulative effect of a change in accounting principle, net of minority interest - - (0.07) - ------------ ------------ ------------ ------------ Net income available to common shareholders $ 0.60 $ 0.52 $ 2.19 $ 2.01 ============ ============ ============ ============ Weighted average number of common and common equivalent shares outstanding 92,593 83,013 92,200 72,741 ============ ============ ============ ============ BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (unaudited and in thousands) Three months ended Year ended December 31, December 31, ----------------------------- ----------------------------- 2001 2000 2001 2000 ------------ ------------ ------------ ------------ Income before net derivative losses (SFAS No. 133), minority interests and income from unconsolidated joint ventures $ 73,860 $64,459 $302,320 $228,779 Add: Real estate depreciation and amortization 41,034 36,830 153,550 134,386 Income from unconsolidated joint ventures 1,345 402 4,186 1,758 Less: Net derivative losses (SFAS No. 133) (2,080) - (26,488) - Minority property partnerships' share of funds from operations (776) (287) (2,322) (1,061) Preferred dividends and distributions (8,448) (8,246) (33,312) (32,994) ------------ ------------ ------------ ------------ Funds from operations $104,935 $93,158 $397,934 $330,868 Add (subtract): Net derivative losses (SFAS No. 133) 2,080 - 26,488 - Early surrender lease adjustment 3,927(1) - (8,518)(2) - ------------ ------------ ------------ ------------ Funds from operations before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $110,942 $93,158 $415,904 $330,868 ============ ============ ============ ============ Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $ 90,704 $71,888 $337,823 $247,371 ============ ============ ============ ============ Weighted average shares outstanding - basic 90,737 80,885 90,002 71,424 ============ ============ ============ ============ FFO per share basic before net derivative losses (SFAS No. 133) and after early surrender adjustment $ 1.00 $ 0.89 $ 3.75 $ 3.46 ============ ============ ============ ============ FFO per share basic after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $ 0.95 $ 0.89 $ 3.59 $ 3.46 ============ ============ ============ ============ Weighted average shares outstanding - diluted 105,577 96,008 105,185 85,723 ============ ============ ============ ============ FFO per share diluted before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $ 0.95 $ 0.85 $ 3.57 $ 3.31 ============ ============ ============ ============ FFO per share diluted after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $ 0.90 $ 0.85 $ 3.42 $ 3.31 ============ ============ ============ ============ (1) Represents cash received under contractual obligations. (2) Income earned of $12.4 million during Q3 2001 net of cash received. BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS December 31, 2001 2000 ------------ ------------ (in thousands, except for share amounts) ASSETS Real estate: $7,457,906 $6,112,779 Less: accumulated depreciation (719,854) (586,719) ------------ ------------ Total real estate 6,738,052 5,526,060 Cash and cash equivalents 98,067 280,957 Escrows 23,000 85,561 Investments in securities 4,297 7,012 Tenant and other receivables 43,546 26,852 Accrued rental income 119,494 91,684 Deferred charges, net 107,573 77,319 Prepaid expenses and other assets 20,996 41,154 Investments in unconsolidated joint ventures 98,485 89,871 ------------ ------------ Total assets $7,253,510 $6,226,470 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $4,314,942 $3,414,891 Accounts payable and accrued expenses 81,108 57,338 Dividends and distributions payable 79,561 71,274 Interest rate contracts 11,147 - Accrued interest payable 9,080 5,599 Other liabilities 58,859 51,926 ------------ ------------ Total liabilities 4,554,697 3,601,028 ------------ ------------ Commitments and contingencies - - ------------ ------------ Minority interests 844,740 877,715 ------------ ------------ 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, 90,780,591 and 86,630,089 issued and outstanding in 2001 and 2000, respectively 908 866 Additional paid-in capital 1,789,521 1,673,349 Dividends in excess of earnings (17,669) (13,895) Treasury Common Stock, at cost (2,722) - Unearned compensation (2,097) (848) Accumulated other comprehensive loss (13,868) (11,745) ------------ ------------ Total stockholders' equity 1,754,073 1,647,727 ------------ ------------ Total liabilities and stockholders' equity $7,253,510 $6,226,470 ============ ============ BOSTON PROPERTIES, INC PORTFOLIO OCCUPANCY Occupancy by Location December 31, 2001 December 31, 2000 ----------------- ----------------- Greater Boston 92.3% 99.3% Greater Washington, D.C. 97.8% 98.5% Midtown Manhattan 99.8% 99.9% Baltimore, MD 99.2% 99.8% Richmond, VA 98.4% 100.0% Princeton/East Brunswick, NJ 88.6% 98.7% Greater San Francisco 93.5% 97.9% Bucks County, PA 100.0% 100.0% ----------------- ----------------- Total Portfolio 95.3% 98.9% ================= ================= Occupancy by Type December 31, 2001 December 31, 2000 ----------------- ----------------- Class A Office Portfolio 95.4% 99.0% Office/Technical Portfolio 97.9% 98.0% Industrial Portfolio 87.3% 95.9% ----------------- ----------------- Total Portfolio 95.3% 98.9% ================= =================