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): OCTOBER 23, 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 October 22, 2002 announcing the Company's results for the third quarter ended September 30, 2002, 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 Amended pages to the Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2001. 99.2 The Boston Properties, Inc. press release dated October 22, 2002. 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: October 22, 2002 BOSTON PROPERTIES, INC. /s/ Douglas T. Linde ---------------------------------- By: Douglas T. Linde Chief Financial Officer
Exhibit 99.1 [LOGO] BOSTON PROPERTIES SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED SEPTEMBER 30, 2002 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 INDEX
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- ------------------------------------------------------------------------------------------------------------------------------------ PAGE PAGE COMPANY BACKGROUND 3 RETAIL PROPERTIES - LEASE EXPIRATION ROLL OUT 27 INVESTOR INFORMATION 4-5 GRAND TOTAL - OFFICE, OFFICE/TECHNICAL, INDUSTRIAL FINANCIAL HIGHLIGHTS 6 AND RETAIL PROPERTIES 28 CONSOLIDATED BALANCE SHEETS 7 BOSTON AREA LEASE EXPIRATION ROLL OUT 29-30 CONSOLIDATED INCOME STATEMENTS 8 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 31-32 FUNDS FROM OPERATIONS 9 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 33-34 CAPITAL STRUCTURE 10 NEW YORK AREA LEASE EXPIRATION ROLL OUT 35-36 DEBT ANALYSIS 11-13 PRINCETON AREA LEASE EXPIRATION ROLL OUT 37-38 UNCONSOLIDATED JOINT VENTURES 14-15 OTHER AREA LEASE EXPIRATION ROLL OUT 39-40 PORTFOLIO OVERVIEW-SQUARE FOOTAGE 16 CBD/SUBURBAN LEASE EXPIRATION ROLL OUT 41-42 PROPERTY LISTING 17-20 HOTEL PERFORMANCE 43 TOP 20 TENANTS 21 SAME PROPERTY PERFORMANCE 44 PORTFOLIO OVERVIEW-FFO 22 IN-SERVICE PROPERTY PERFORMANCE 45 OCCUPANCY ANALYSIS 23 CAPITAL EXPENDITURES 46 OFFICE PROPERTIES-LEASE EXPIRATION ROLL OUT 24 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 47 OFFICE/TECHNICAL PROPERTIES-LEASE EXPIRATION VALUE CREATION PIPELINE - DEVELOPMENT 48 ROLL OUT 25 VALUE CREATION PIPELINE - LAND PARCELS 49 INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 26 ACQUISITION PROPERTY PROFILE 50 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 COMPANY BACKGROUND - -------------------------------------------------------------------------------- Boston Properties, Inc., a self-administered and self-managed real estate investment trust, is one of the largest owners, managers and developers of first-class office properties in the United States, with a significant presence in four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. Boston Properties was founded in 1970 in Boston, where it maintains its headquarters. The Company acquires, develops and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco and Princeton, New Jersey. Its property portfolio primarily comprises first-class office space and also includes hotels and industrial buildings. Since the Company's initial offering in June 1997, the Company has acquired 51 properties adding approximately 20.1 million square feet to its portfolio, representing an investment of approximately $5.8 billion, and the Company has delivered 32 development properties adding approximately 6.6 million square feet to its portfolio, representing an investment of approximately $1.5 billion. In addition, the Company is constructing eight office properties for a total anticipated investment of approximately $1.0 billion. The Company owns or controls land where it can develop an 3
BOSTON PROPERTIES, INC. THIRD QUARTER 2002 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: FOURTH QUARTER LATE JANUARY 4
BOSTON PROPERTIES, INC. THIRD QUARTER 2002 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):
- ---------------- (1) REFLECTS DIVIDEND INCREASE FROM $0.58 PER SHARE TO $0.61 PER SHARE EFFECTIVE Q2 2002. 5
3RD QUARTER 2002 2ND QUARTER 2002 1ST QUARTER 2002 4TH QUARTER 2001 ---------------- ---------------- ---------------- ---------------- HIGH PRICE $ 39.8700 $ 41.5500 $ 39.8200 $ 38.4100 LOW PRICE $ 34.5600 $ 37.8800 $ 35.9800 $ 34.3300 CLOSING PRICE $ 37.2000 $ 39.9500 $ 39.4500 $ 38.0000 DIVIDENDS PER SHARE - ANNUALIZED (1) $ 2.44 $ 2.44 $ 2.32 $ 2.32 CLOSING DIVIDEND YIELD - ANNUALIZED 6.56% 6.11% 5.88% 6.11% CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 125,031 125,017 124,761 124,630 CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $4,651,153 $4,994,429 $4,921,821 $4,735,940 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 FINANCIAL HIGHLIGHTS - ------------------------------------------------------------------------------- (UNAUDITED AND IN THOUSANDS)
(1) Includes gross revenues from hotels of $20,007. (2) Includes a refund of $1,300 related to prior years' tax matter. (3) 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 other non-cash charges. (4) Amortization of financing costs were $1,274, $1,346, $1,309 and $970 for the quarters ended September 30, 2002, June 30, 2002, March 31, 2002, and December 31, ( 2001, respectively. These amounts were not included in the calculation of interest coverage ratio. 6
THREE MONTHS ENDED ------------------------------------------------------------- SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, 2002 2002 2002 2001 ------------- ----------- ------------ ------------ INCOME ITEMS: Revenue $ 308,053(1) $ 290,015(2) $ 274,320 $ 264,964 Net straight line rent $ 12,244 $ 12,216 $ 14,784 $ 9,215 Lease termination fees $ 1,858 $ 1,227 $ 511 $ 397 Capitalized interest $ 4,684 $ 5,261 $ 7,847 $ 12,739 Net income available to common shareholders before net derivative losses (SFAS No.133) $ 75,886 $ 58,714 $ 55,613 $ 56,980 Funds from operations (FFO) before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 120,358 $ 120,263 $ 108,820 $ 110,942 Company's share $ 98,980 $ 98,165 $ 88,929 $ 90,704 FFO per share before net derivative losses (SFAS 133) and after cash basis early surrender lease income - basic $ 1.04 $ 1.07 $ 0.98 $ 1.00 FFO per share before net derivative losses (SFAS 133) and after cash basis early surrender lease income - diluted $ 1.00 $ 1.02 $ 0.93 $ 0.95 Dividends per share $ 0.61 $ 0.61 $ 0.58 $ 0.58 Funds available for distribution (FAD) (3) $ 95,901 $ 87,470 $ 81,799 $ 91,828 RATIOS: Interest Coverage Ratio (excluding capitalized interest) - cash basis (4) 2.70 2.71 2.57 2.81 Interest Coverage Ratio (including capitalized interest) - cash basis (4) 2.50 2.51 2.29 2.31 FFO Payout Ratio 61.00% 59.80% 62.37% 61.05% FAD Payout Ratio 73.44% 78.15% 78.92% 70.10% SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, 2002 2002 2002 2001 ------------- ----------- ------------ ------------ CAPITALIZATION: Total Debt $ 5,466,692 $ 4,415,724 $ 4,361,233 $ 4,314,942 Price @ Quarter End $ 37.2000 $ 39.9500 $ 39.4500 $ 38.0000 Equity Value @ Quarter End $ 4,651,153 $ 4,994,429 $ 4,921,821 $ 4,735,940 Total Market Capitalization $10,117,845 $ 9,410,153 $ 9,283,054 $ 9,050,882 Debt/Total Market Capitalization 54.03% 46.93% 46.98% 47.67% BOSTON PROPERTIES, INC. THIRD QUARTER 2002 CONSOLIDATED BALANCE SHEETS - -------------------------------------------------------------------------------- (IN THOUSANDS)
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SEPTEMBER 30, JUNE 30, MARCH 31, DECEMBER 31, 2002 2002 2002 2001 ------------- ----------- ----------- ------------ (unaudited) (unaudited) (unaudited) ASSETS Real estate $ 8,139,450 $ 6,972,779 $ 6,573,532 $ 6,167,399 Development in progress 416,839 435,125 733,710 1,107,835 Land held for future development 209,911 199,681 206,098 182,672 Less accumulated depreciation (836,418) (795,852) (755,156) (719,854) ----------- ----------- ----------- ----------- Total real estate 7,929,782 6,811,733 6,758,184 6,738,052 Cash and cash equivalents 28,793 81,640 93,031 98,067 Escrows 28,200 22,776 23,192 23,000 Investments in securities -- -- -- 4,297 Tenant and other receivables, net 48,716 31,298 36,846 43,546 Accrued rental income, net 156,818 146,100 133,885 119,494 Deferred charges, net 148,435 148,239 127,948 107,573 Prepaid expenses and other assets 38,752 16,081 30,235 20,996 Investments in unconsolidated joint ventures 101,819 100,804 98,071 98,485 ----------- ----------- ----------- ----------- TOTAL ASSETS $ 8,481,315 $ 7,358,671 $ 7,301,392 $ 7,253,510 =========== =========== =========== =========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $ 4,422,692 $ 4,415,724 $ 4,361,233 $ 4,314,942 Unsecured Bridge Loan 1,000,000 -- -- -- Unsecured Line of Credit 44,000 -- -- -- Accounts payable and accrued expenses 69,097 52,655 56,125 81,108 Dividends and distributions payable 81,329 83,707 79,985 79,561 Interest rate contracts 15,115 11,568 8,635 11,147 Accrued interest payable 18,265 17,635 15,032 9,080 Other liabilities 70,292 65,142 75,465 58,859 ----------- ----------- ----------- ----------- Total liabilities 5,720,790 4,646,431 4,596,475 4,554,697 ----------- ----------- ----------- ----------- Commitments and contingencies -- -- -- -- ----------- ----------- ----------- ----------- Minority interests 804,229 825,730 829,687 844,740 ----------- ----------- ----------- ----------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 0 and 2,000,000 shares issued and outstanding in 2002 and 2001, respectively -- 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, 95,273,202, 91,545,294, 91,137,874 and 90,780,591 issued and outstanding, respectively 953 915 911 908 Additional paid-in capital 1,977,560 1,821,762 1,809,836 1,789,521 Dividends in excess of earnings (2,532) (16,152) (15,084) (17,669) Treasury common stock, at cost (2,722) (2,722) (2,722) (2,722) Unearned compensation (3,355) (3,598) (3,843) (2,097) Accumulated other comprehensive loss (13,608) (13,695) (13,868) (13,868) ----------- ----------- ----------- ----------- Total stockholders' equity 1,956,296 1,786,510 1,775,230 1,754,073 ----------- ----------- ----------- ----------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,481,315 $ 7,358,671 $ 7,301,392 $ 7,253,510 =========== =========== =========== =========== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 CONSOLIDATED INCOME STATEMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED)
(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 $12,244, $12,216, $14,784 and $9,215 for the three months ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001, respectively. (2) Includes hotel lease payments of $8,023, $4,322 and $7,495 for the three months ended June 30, 2002, March 31, 2002 and December 31, 2001, respectively. (3) Includes a refund of $1,300 related to prior years' tax matter for the three months ended June 30, 2002. (4) Includes hotel expenses of $1,844, $1,327 and $1,641 for the three months ended June 30, 2002, March 31, 2002 and December 31, 2001, respectively. (5) Includes a $2.8 million write-off of leasing costs related to the termination of the lease with Arthur Andersen for the three months ended June 30, 2002. (6) Interest expense is reported net of capitalized interest of $4,684, $5,261, $7,847 and $12,739 for the three months ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001, respectively. (7) Equals minority interest percent of 17.76%, 18.37%, 18.28% and 18.24%, respectively of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001, respectively. 8
THREE MONTHS ENDED ------------------------------------------------ 30-SEP-02 30-JUN-02 31-MAR-02 31-DEC-01 --------- --------- --------- --------- Revenue: Rental Base Rent(1)(2) $ 241,495 $ 242,846 $ 229,106 $ 220,701 Recoveries from tenants 29,256 30,112 27,712 26,799 Parking and other 13,056 12,458 12,096 11,757 --------- --------- --------- --------- Total rental revenue 283,807 285,416 268,914 259,257 Hotel revenues 20,007 -- -- -- Development and management services 3,017 2,289 4,134 3,878 Interest and other(3) 1,222 2,310 1,272 1,829 --------- --------- --------- --------- Total revenue 308,053 290,015 274,320 264,964 --------- --------- --------- --------- Expenses: Operating(4) 93,741 86,866 85,089 83,403 Hotel operating 13,524 -- -- -- General and administrative(5) 9,956 13,564 11,069 8,663 Interest(6) 68,425 67,327 63,787 59,730 Depreciation and amortization 45,534 43,796 42,944 40,020 Loss on investments in other companies -- -- 4,297 -- --------- --------- --------- --------- Total expenses 231,180 211,553 207,186 191,816 --------- --------- --------- --------- Income before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures 76,873 78,462 67,134 73,148 Net derivative losses (SFAS No.133) (5,284) (4,826) (303) (2,080) Minority interest in property partnerships 720 712 471 456 Income from unconsolidated joint ventures 2,530 1,659 1,682 1,345 --------- --------- --------- --------- Income before minority interest in Operating Partnership 74,839 76,007 68,984 72,869 Minority interest in Operating Partnership(7) (18,726) (19,589) (18,386) (19,107) --------- --------- --------- --------- Income before gain on sales, net of minority interest 56,113 56,418 50,598 53,762 Gain on sales of real estate, net -- -- -- 2,584 --------- --------- --------- --------- Income before gain on sales of land held for development 56,113 56,418 50,598 56,346 Gain on sales of land held for development, net 3,644 -- -- -- --------- --------- --------- --------- Income before discontinued operations 59,757 56,418 50,598 56,346 Income from discontinued operations, net of minority interest -- -- 570 582 Gain on sales of real estate from discontinued operations, net of minority interest 11,910 -- 5,840 -- --------- --------- --------- --------- Income before preferred dividend 71,667 56,418 57,008 56,928 Preferred dividend (126) (1,643) (1,643) (1,648) --------- --------- --------- --------- Net income available to common shareholders $ 71,541 $ 54,775 $ 55,365 $ 55,280 ========= ========= ========= ========= INCOME PER SHARE OF COMMON STOCK (EPS) Net income available to common shareholders per share - basic $ 0.75 $ 0.60 $ 0.61 $ 0.61 ========= ========= ========= ========= Net income available to common shareholders per share - diluted $ 0.74 $ 0.59 $ 0.60 $ 0.60 ========= ========= ========= ========= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 FUNDS FROM OPERATIONS - -------------------------------------------------------------------------------- (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED)
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS - --------------------------------------------------------------------------------
THREE MONTHS ENDED ------------------------------------------ 30-SEP-02 30-JUN-02 31-MAR-02 31-DEC-01 --------- --------- --------- --------- Income from operations before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures $ 76,873 $ 78,462 $ 67,134 $ 73,148 Add: Real estate depreciation and amortization(1) 46,971 45,032 44,499 41,034 Income from discontinued operations -- -- 697 712 Income from unconsolidated joint ventures 2,530 1,659 1,682 1,345 Less: Net derivative losses (SFAS No.133) 5,284 4,826 303 2,080 Minority property partnership's share of funds from operations 521 593 719 776 Preferred dividends and distributions 6,162 8,223 8,400 8,448 -------- -------- -------- -------- Funds from operations (FFO) 114,407 111,511 104,590 104,935 Add (subtract): Net derivative losses (SFAS No.133) 5,284 4,826 303 2,080 Early surrender lease payments received - contractual basis 667 3,926 3,927 3,927 -------- -------- -------- -------- FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $120,358 $120,263 $108,820 $110,942 ======== ======== ======== ======== FFO available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease payments received (3) $ 98,980 $ 98,165 $ 88,929 $ 90,704 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after cash basis early surrender lease income - basic $ 1.04 $ 1.07 $ 0.98 $ 1.00 ======== ======== ======== ======== Weighted average shares outstanding - basic 94,904 91,357 90,932 90,737 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 1.00 $ 1.02 $0.93 $ 0.95 ======== ======== ======== ======== FFO per share after net derivative losses (SFAS No.133) and before early surrender lease payments received - diluted $ 0.95 $ 0.95 $ 0.90 $ 0.90 ======== ======== ======== ======== Weighted average shares outstanding - diluted 105,725 105,982 105,768 105,577 ======== ======== ======== ======== (1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $2,170, $1,947, $2,187 and $1,380 less corporate related depreciation of $733, $711, ( $632 and $576 for the three months ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001, respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001 was 82.24%, 81.63%, 81.72% and 81.79%, ( respectively. (3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2002, June 30, 2002, March 31, 2002 and December 31, 2001 was 83.76%, 83.75%, 83.87% and 83.91%, ( respectively. 9
SEPTEMBER 30, 2002 JUNE 30, 2002 -------------------------- ---------------------------- INCOME SHARES INCOME SHARES (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR) ----------- ------------- ----------- ------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income $120,358 $115,402 $120,263 $111,923 Effect of Dilutive Securities Convertible Preferred Units 6,036 9,344 6,580 10,342 Convertible Preferred Stock 126 200 1,643 2,625 Stock Options and other -- 1,276 -- 1,659 -------- -------- -------- -------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $126,520 $126,222 $128,486 $126,549 ======== ======== ======== ======== Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received(2) $105,974 $105,725 $107,605 $105,982 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 1.04 $ 1.07 ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 1.00 $ 1.02 ======== ======== MARCH 31, 2002 DECEMBER 31, 2001 -------------------------- ---------------------------- INCOME SHARES INCOME SHARES (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR) ----------- ------------- ----------- ------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income $108,820 $111,272 $110,942 $110,982 Effect of Dilutive Securities Convertible Preferred Units 6,757 10,823 6,800 11,011 Convertible Preferred Stock 1,643 2,625 1,648 2,625 Stock Options and other -- 1,387 -- 1,205 -------- -------- -------- -------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received $117,220 $126,107 $119,390 $125,823 ======== ======== ======== ======== Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received(2) $ 98,314 $105,768 $100,179 $105,577 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - basic $ 0.98 $ 1.00 ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received - diluted $ 0.93 $ 0.95 ======== ======== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 CAPITAL STRUCTURE - -------------------------------------------------------------------------------- DEBT - -------------------------------------------------------------------------------- (IN THOUSANDS)
(1) Does not include joint venture debt outstanding. See page 15 for detailed joint venture information. EQUITY - -------------------------------------------------------------------------------- (IN THOUSANDS)
AGGREGATE PRINCIPAL SEPTEMBER 30, 2002 ------------------- Mortgage Notes and Bonds Payable $4,422,692 Unsecured Bridge Loan 1,000,000 Unsecured Line of Credit 44,000 ---------- Total Debt(1) $5,466,692 ========== (1) Value based on September 30, 2002 closing price of $37.20 10
COMMON SHARES & UNITS STOCK OUTSTANDING EQUIVALENTS EQUIVALENT(1) -------------- ----------- ------------- Common Stock 95,273 95,273 $ 3,544,156 Operating Partnership Units 20,496 20,496 762,451 Preferred Operating Partnership Units Series One 2,446 2,175 80,910 Series Two 5,401 7,087 263,636 ----------- ----------- Total Equity 125,031 $ 4,651,153 =========== =========== Total Market Capitalization $10,117,845 =========== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 DEBT ANALYSIS - -------------------------------------------------------------------------------- DEBT MATURITIES AND PRINCIPAL PAYMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS)
(1) Includes $44,000 and $1,000,000 maturing under the Unsecured Line of Credit and Unsecured Bridge Loan, respectively. UNSECURED DEBT - -------------------------------------------------------------------------------- UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003 - -------------------------------------------------------------------------------- (IN THOUSANDS)
2002 2003(1) 2004 2005 2006 THEREAFTER TOTAL ---- ---- ---- ---- ---- ---------- ----- Amount $ 39,962 $ 2,150,256 $ 359,933 $ 277,880 $ 284,516 $ 2,354,145 $ 5,466,692 Average Rate 4.46% 4.14% 4.88% 7.05% 7.79% 7.11% 5.81% UNSECURED BRIDGE LOAN - MATURES SEPTEMBER 2003 - -------------------------------------------------------------------------------- (IN THOUSANDS) OUTSTANDING @9/30/02 $ 1,000,000 UNSECURED AND SECURED DEBT ANALYSIS - --------------------------------------------------------------------------------
OUTSTANDING LETTERS OF REMAINING FACILITY @9/30/02 CREDIT CAPACITY -------- ----------- ---------- --------- $ 605,000 $44,000 $927 $560,073 FLOATING AND FIXED RATE DEBT ANALYSIS - --------------------------------------------------------------------------------
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Unsecured Debt 19.10% 3.12% 1.0 years Secured Debt 80.90% 6.44% 4.8 years ------ ------ ------- Total Debt 100.00% 5.81% 4.1 years ====== ====== ======= 11
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 37.55% 3.35% 1.0 years Fixed Rate Debt 62.45% 7.28% 6.0 years ------ ------ ------- Total Debt 100.00% 5.81% 4.1 years ====== ====== ======= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS - ------------------------------------------------------------------------------- (IN THOUSANDS)
(1) Represents the period from October 1, 2002 through December 31, 2002. (2) This loan was refinanced on October 1, 2002 with proceeds from a draw on the Company's Unsecured Line of Credit. This draw is secured by the 875 Third Avenue property. 12
PROPERTY 2002(1) 2003 2004 2005 2006 THEREAFTER TOTAL - -------------------------------- --------- ---------- ---------- ---------- ---------- ---------- ---------- Citigroup Center $ 1,378 $ 5,763 $ 6,191 $ 6,651 $ 7,145 $ 490,928 $ 518,056 5 Times Square -- 366,493 -- -- -- -- 366,493 Embarcadero Center One, Two and Federal Reserve 484 4,498 4,809 5,141 5,496 284,789 305,217 Prudential Center 679 4,299 4,591 4,919 5,256 265,325 285,069 280 Park Avenue 668 2,800 3,022 3,261 3,519 252,592 265,862 599 Lexington Avenue -- -- -- 225,000 -- -- 225,000 111 Huntington Avenue -- 199,933 -- -- -- -- 199,933 Times Square Tower -- -- 191,044 -- -- -- 191,044 Embarcadero Center Four 800 3,315 3,544 3,797 4,061 134,058 149,575 875 Third Avenue(2) 400 146,766 -- -- -- -- 147,166 Embarcadero Center Three 354 2,206 2,351 2,506 2,671 132,726 142,814 Two Independence Square 321 113,808 -- -- -- -- 114,129 Riverfront Plaza 436 2,720 2,905 3,104 3,314 98,867 111,346 Democracy Center 436 1,828 1,961 2,103 2,257 96,150 104,735 Embarcadero Center West Tower 229 1,449 1,546 1,649 90,416 -- 95,289 100 East Pratt Street 436 1,836 1,964 2,100 2,246 80,511 89,093 601 and 651 Gateway Boulevard 132 826 899 977 1,062 84,721 88,617 One Independence Square -- 75,000 -- -- -- -- 75,000 Reservoir Place 683 2,859 3,061 3,279 60,067 -- 69,949 One & Two Reston Overlook 195 818 65,908 -- -- -- 66,921 2300 N Street -- 66,000 -- -- -- -- 66,000 202, 206 & 214 Carnegie Center 146 610 663 719 780 59,061 61,979 New Dominion Technology Park, Building One -- 102 91 654 1,282 55,420 57,549 Capital Gallery 307 1,293 1,404 1,524 50,651 -- 55,179 Waltham Weston Corporate Center -- -- 54,240 -- -- -- 54,240 504, 506 & 508 Carnegie Center 155 979 1,052 1,136 1,221 42,229 46,772 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS)
(1) Represents the period from October 1, 2002 through December 31, 2002. (2) This loan was repaid on October 4, 2002. 13
PROPERTY 2002(1) 2003 2004 2005 2006 THEREAFTER TOTAL - -------------------------------- --------- ---------- ---------- ---------- ---------- ---------- ---------- 10 & 20 Burlington Mall Road 204 641 688 741 795 36,444 39,513 10 Cambridge Center 88 559 607 659 715 32,213 34,841 1301 New York Avenue 290 1,217 1,315 1,417 1,531 25,061 30,831 2600 Tower Oaks Boulevard 30,169 -- -- -- -- -- 30,169 Sumner Square 115 481 518 557 599 27,581 29,851 Quorum Office Park -- 29,066 -- -- -- -- 29,066 Eight Cambridge Center 102 516 557 601 649 25,188 27,613 510 Carnegie Center 86 547 588 635 683 24,255 26,794 Lockheed Martin Building 96 601 641 685 732 22,581 25,336 University Place 104 655 702 752 806 21,203 24,222 Reston Corporate Center 92 574 612 654 698 21,268 23,898 Orbital Sciences - Phase II -- 23,611 -- -- -- -- 23,611 191 Spring Street 66 407 443 482 20,773 -- 22,171 Bedford Business Park 100 634 690 751 818 17,749 20,742 NIMA Building 78 497 530 566 604 18,430 20,705 Shaws Supermarket -- 16,422 -- -- -- -- 16,422 40 Shattuck Road -- 15,919 -- -- -- -- 15,919 101 Carnegie Center 55 348 375 406 6,622 -- 7,806 Montvale Center 38 160 173 189 6,762 -- 7,322 302 Carnegie Center -- 6,969 -- -- -- -- 6,969 Hilltop Business Center 31 187 200 214 230 4,581 5,443 201 Carnegie Center(2) 9 44 48 51 55 214 421 ---------- ---------- ---------- ---------- ---------- ---------- ---------- $ 39,962 $1,106,256 $ 359,933 $ 277,880 $ 284,516 $2,354,145 $4,422,692 ========== ========== ========== ========== ========== ========== ========== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 UNCONSOLIDATED JOINT VENTURES - -------------------------------------------------------------------------------- MISCELLANEOUS BALANCE SHEET INFORMATION - -------------------------------------------------------------------------------- (UNAUDITED AND IN THOUSANDS) AS OF SEPTEMBER 30, 2002
RESULTS OF OPERATIONS - -------------------------------------------------------------------------------- FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2002
ONE MARKET 140 265 TWO 901 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY FREEDOM NEW YORK SQUARE NORTH SQUARE STREET STREET SQUARE(2) SQUARE(2) AVENUE(2) COMBINED ------- ------ ------------ -------- -------- ---------- --------- --------- -------- Total Equity(1) $ 581 $13,112 $31,903 $ 5,689 $22,012 $ 7,030 $ 7,610 $13,882 $101,819 ======= ======= ======= ======= ======= ======= ======= ======= ======== Mortgage/Construction loans payable(1) $18,989 $48,826 $69,939 $14,096 $18,897 $29,221 $31,013 $ -- $230,981 ======= ======= ======= ======= ======= ======= ======= ======= ======== BXP's nominal ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 50.00% 25.00% ======= ======= ======= ======= ======= ======= ======= ======= (1) Represents the Company's share. (2) Property is currently under development. (3) The impact of the straight-line rent adjustment increased revenue by $2,444 for the three months ended September 30, 2002. (4) Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreements. 14
ONE MARKET 140 265 TWO 901 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY FREEDOM NEW YORK SQUARE NORTH SQUARE STREET STREET SQUARE(2) SQUARE(2) AVENUE(2) COMBINED ------- ------ ------------ -------- -------- ---------- --------- --------- -------- REVENUE Total revenue $ 3,723 $ 5,035 $ 6,014 $ 2,931 $ 3,686 $ 2,610 $ 1,561 $ -- $ 25,560(3) ------- ------- ------- ------- ------- ------- ------- ------- -------- EXPENSES Operating 906 1,341 1,975 509 1,312 598 314 -- 6,955 ------- ------- ------- ------- ------- ------- ------- ------- -------- NET OPERATING INCOME 2,817 3,694 4,039 2,422 2,374 2,012 1,247 -- 18,605 Interest 1,479 1,895 2,850 1,064 475 411 199 -- 8,373 Depreciation and amortization 744 629 1,203 350 724 704 80 -- 4,434 ------- ------- ------- ------- ------- ------- ------- ------- -------- NET INCOME $ 594 $ 1,170 $ (14) $ 1,008 $ 1,175 $ 897 $ 968 $ -- $ 5,798 ======= ======= ======= ======= ======= ======= ======= ======= ======== BXP's share of net income $ 189 $ 584 $ (7) $ 421 $ 411 $ 448 $ 484 $ -- $ 2,530 ======= ======= ======= ======= ======= ======= ======= ======= ======== BXP's share of Funds from Operations $ 622 $ 899 $ 606 $ 584 $ 665 $ 800 $ 524 $ -- $ 4,700 ======= ======= ======= ======= ======= ======= ======= ======= ======== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS(*) - -------------------------------------------------------------------------------- DEBT MATURITIES AND PRINCIPAL PAYMENTS - -------------------------------------------------------------------------------- (IN THOUSANDS)
FLOATING AND FIXED RATE DEBT ANALYSIS - --------------------------------------------------------------------------------
2002 2003 2004 2005 2006 THEREAFTER TOTAL ---- ---- ---- ---- ---- ---------- ----- Amount $ 386 $ 49,968 $ 33,013 $ 2,165 $ 2,342 $ 143,107 $ 230,981 Average Rate 7.84% 3.47% 3.94% 7.89% 7.89% 7.94% 6.40% DEBT MATURITIES AND PRINCIPAL PAYMENTS BY PROPERTY - -------------------------------------------------------------------------------- (IN THOUSANDS)
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt 34.26% 3.45% 1.4 years Fixed Rate Debt 65.74% 7.93% 8.4 years ------ ------ ----- Total Debt 100.00% 6.40% 6.0 years ====== ====== ===== (*) All amounts represent the Company's share. (1) Boston Properties has a 51% interest in this property. (2) Boston Properties has a 50% interest in this property. (3) Boston Properties has a 25% interest in this property. (4) Boston Properties has a 35% interest in this property. 15
PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL -------- ---- ---- ---- ---- ---- ---------- ----- Metropolitan Square(1) $ 112 $ 704 $ 764 $ 830 $ 901 $ 66,628 $ 69,939 Market Square North(2) 189 795 858 927 1,001 45,056 48,826 Two Freedom Square(2) -- -- 31,013 -- -- -- 31,013 Discovery Square(2) -- 29,221 -- -- -- -- 29,221 One Freedom Square(3) 50 205 221 239 258 18,016 18,989 265 Franklin Street(4) -- 18,897 -- -- -- -- 18,897 140 Kendrick Street(3) 35 146 157 169 182 13,407 14,096 -------- -------- -------- -------- -------- -------- -------- $ 386 $ 49,968 $ 33,013 $ 2,165 $ 2,342 $143,107 $230,981 ======== ======== ======== ======== ======== ======== ======== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 PORTFOLIO OVERVIEW - SQUARE FOOTAGE - -------------------------------------------------------------------------------- RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY - --------------------------------------------------------------------------------
HOTEL PROPERTIES - --------------------------------------------------------------------------------
GEOGRAPHIC AREA OFFICE(1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL - ---------------------------- -------------- ------------------ ------------ -------------- ------------ Greater Boston 7,462,301(2) 545,206 152,009 8,159,516 24.89% Greater Washington 6,838,236(3) 843,639 -- 7,681,875 23.43% Greater San Francisco 4,703,765 144,366 280,213 5,128,344 15.64% Midtown Manhattan 7,252,686 -- -- 7,252,686 22.13% Princeton/East Brunswick, NJ 2,319,482 -- -- 2,319,482 7.08% Baltimore, MD 1,176,029 -- -- 1,176,029 3.59% Richmond, VA 900,586 -- -- 900,586 2.75% Bucks County, PA -- -- 161,000 161,000 0.49% ---------- --------- ------- ---------- ------ 30,653,085 1,533,211 593,222 32,779,518 100.00% ========== ========= ======= ========== ====== % of Total 93.51% 4.68% 1.81% 100.00% STRUCTURED PARKING - --------------------------------------------------------------------------------
NUMBER OF SQUARE HOTEL PROPERTIES ROOMS FEET ---------------- --------- ------- Long Wharf Marriott, Boston, MA 402 420,000 Cambridge Center Marriott, Cambridge, MA 431 330,400 Residence Inn by Marriott, Cambridge, MA 221 187,474 ----- ------- Total Hotel Properties 1,054 937,874 ===== ======= (1) Includes retail square footage of approximately 1,200,000. (2) Includes 343,913 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, 401,279 square feet at Market Square North which is 50% owned by Boston Properties and 181,019 square feet at Discovery Square which is 50% owned by Boston Properties. 16
NUMBER OF SQUARE SPACES FEET --------- ------ TOTAL STRUCTURED PARKING 18,484 6,017,423 ====== ========= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE PROPERTY LISTING - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
(1) Not included in same property analysis (2) 93,852 square feet of space added in Q2 2002 is not included in the same property analysis. (3) One building totaling 129,959 square feet is not included in same property analysis. 17
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- --------- ---------- ---------- ----------- GREATER BOSTON Office 800 Boylston Street - The Prudential Center CBD Boston MA 1 1,175,218 91.9% $38.25 (1)111 Huntington Avenue - The Prudential Center CBD Boston MA 1 854,129 98.2% 45.56 101 Huntington Avenue - The Prudential Center CBD Boston MA 1 510,983 96.7% 38.52 (2)The Shops at the Prudential Center CBD Boston MA 1 557,361 90.8% 45.60 265 Franklin Street (35% ownership) CBD Boston MA 1 343,913 67.4% 55.60 One Cambridge Center East Cambridge MA 1 215,385 93.0% 43.72 Three Cambridge Center East Cambridge MA 1 107,484 100.0% 26.89 Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 30.96 Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 34.32 Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 41.87 University Place Mid-Cambridge MA 1 195,282 100.0% 34.76 Reservoir Place Route 128 Mass Turnpike MA 1 522,760 86.0% 35.33 204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 100.0% 28.89 140 Kendrick Street (25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 27.95 170 Tracer Lane Route 128 Mass Turnpike MA 1 73,203 55.1% 35.09 Waltham Office Center Route 128 Mass Turnpike MA 3 130,209 96.5% 30.32 195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 46.35 200 West Street Route 128 Mass Turnpike MA 1 248,048 100.0% 34.74 10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 87.8% 28.60 Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 20.59 32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 28.88 91 Hartwell Avenue Route 128 Northwest MA 1 121,215 86.4% 34.32 92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0% 51.71 100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 32.90 33 Hayden Avenue Route 128 Northwest MA 1 75,216 100.0% 40.16 Lexington Office Park Route 128 Northwest MA 2 167,293 83.0% 30.14 191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 30.79 181 Spring Street Route 128 Northwest MA 1 53,595 100.0% 36.35 201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 32.33 40 Shattuck Road Route 128 Northwest MA 1 119,499 92.6% 25.90 (3)Quorum Office Park Route 128 Northwest MA 2 259,918 100.0% 17.61 Newport Office Park Route 128 South MA 1 168,829 100.0% 23.87 ---- --------- ----- ------ 39 7,462,301 93.5% $36.41 ---- --------- ----- ------ Office/Technical Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0% 19.48 Bedford Business Park Route 128 Northwest MA 2 383,704 100.0% 14.87 17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 11.00 164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 9.77 ---- --------- ----- ------ 5 545,206 100.0% $14.62 ---- --------- ----- ------ Industrial 40-46 Harvard Street Route 128 Southwest MA 1 152,009 100.0% $ 7.54 ---- --------- ----- ------ Total Greater Boston: 45 8,159,516 94.0% $34.29 ==== ========= ===== ====== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE PROPERTY LISTING - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
(1) Not included in same property analysis (2) One of three buildings totaling 160,502 square feet is not included in the same property analysis 18
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% $53.72 One Independence Square Southwest Washington DC 1 337,794 100.0% 40.65 Two Independence Square Southwest Washington DC 1 579,665 100.0% 38.06 Capital Gallery Southwest Washington DC 1 396,894 100.0% 36.48 500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 32.39 Metropolitan Square (51% ownership) East End Washington DC 1 587,217 98.7% 38.02 1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.34 Market Square North (50% ownership) East End Washington DC 1 401,279 100.0% 44.35 Sumner Square CBD Washington DC 1 207,620 100.0% 34.19 Decoverly Two Montgomery County MD 1 77,747 100.0% 24.14 Decoverly Three Montgomery County MD 1 77,040 100.0% 25.45 Democracy Center Montgomery County MD 3 681,452 96.4% 29.75 Montvale Center Montgomery County MD 1 120,823 85.5% 23.54 2600 Tower Oaks Boulevard Montgomery County MD 1 178,869 97.8% 32.05 (2)Orbital Sciences Campus Loudoun County 3 337,228 100.0% 23.24 The Arboretum Fairfax County VA 1 95,584 100.0% 25.71 One Freedom Square (25% ownership) Fairfax County VA 1 410,308 100.0% 33.26 One Reston Overlook Fairfax County VA 1 312,685 100.0% 22.15 Two Reston Overlook Fairfax County VA 1 131,594 77.4% 32.48 (1)One Discovery Square (50% ownership) Fairfax County VA 1 181,019 100.0% 35.61 New Dominion Technology Park Fairfax County VA 1 235,201 100.0% 27.19 Reston Corporate Center Fairfax County VA 2 261,046 100.0% 31.09 Lockheed Martin Building Fairfax County VA 1 255,244 100.0% 29.63 NIMA Building Fairfax County VA 1 263,870 100.0% 45.57 ---- --------- ----- ----- 29 6,838,236 98.7% $34.36 ---- --------- ----- ----- Office/Technical Sugarland Business Park, Building One Fairfax County VA 1 52,797 100.0% 22.57 Sugarland Business Park, Building Two Fairfax County VA 1 59,215 65.9% 20.09 7435 Boston Boulevard Fairfax County VA 1 103,557 82.3% 14.81 7451 Boston Boulevard Fairfax County VA 1 47,001 66.1% 15.39 7450 Boston Boulevard Fairfax County VA 1 62,402 100.0% 16.81 7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.92 8000 Grainger Court Fairfax County VA 1 90,465 100.0% 13.45 7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.89 7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 23.55 7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 14.28 7375 Boston Boulevard Fairfax County VA 1 26,865 87.1% 16.47 8000 Corporate Court Fairfax County VA 1 52,539 100.0% 10.03 (1)7300 Boston Boulevard Fairfax County VA 1 32,000 100.0% 20.25 ---- --------- ----- ----- 13 843,639 93.1% $16.65 ---- --------- ----- ----- Total Greater Washington: 42 7,681,875 98.1% $32.44 ==== ========= ===== ===== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE PROPERTY LISTING - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
(1) Not included in same property analysis 19
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- --------- ---------- ---------- ----------- MIDTOWN MANHATTAN Office 599 Lexington Avenue Park Avenue NY 1 1,019,772 97.8% $60.42 280 Park Avenue Park Avenue NY 1 1,166,777 98.6% 54.08 Citigroup Center Park Avenue NY 1 1,576,803 99.9% 55.47 (1)399 Park Avenue Park Avenue NY 1 1,677,679 100.0% 68.19 (1)5 Times Square Times Square NY 1 1,099,754 97.5% 50.54 875 Third Avenue East Side NY 1 711,901 91.7% 54.15 ---- --------- ----- ------ Total Midtown Manhattan: 6 7,252,686 98.2% $58.07 ==== ========= ===== ====== PRINCETON/EAST BRUNSWICK, NJ Office 101 Carnegie Center Princeton NJ 1 123,659 100.0% $27.45 104 Carnegie Center Princeton NJ 1 102,830 85.2% 31.71 105 Carnegie Center Princeton NJ 1 69,648 100.0% 28.80 201 Carnegie Center Princeton NJ - 6,500 100.0% 24.04 202 Carnegie Center Princeton NJ 1 128,705 98.4% 29.69 210 Carnegie Center Princeton NJ 1 161,112 100.0% 29.95 211 Carnegie Center Princeton NJ 1 47,025 100.0% 24.32 212 Carnegie Center Princeton NJ 1 148,233 100.0% 31.10 214 Carnegie Center Princeton NJ 1 152,214 93.1% 29.24 206 Carnegie Center Princeton NJ 1 161,763 100.0% 28.10 302 Carnegie Center Princeton NJ 1 65,135 95.5% 30.31 502 Carnegie Center Princeton NJ 1 116,374 95.3% 30.69 510 Carnegie Center Princeton NJ 1 234,160 100.0% 25.32 504 Carnegie Center Princeton NJ 1 121,990 100.0% 26.94 506 Carnegie Center Princeton NJ 1 138,162 55.4% 30.59 508 Carnegie Center Princeton NJ 1 131,085 100.0% 25.29 One Tower Center East Brunswick NJ 1 410,887 84.4% 32.34 ---- --------- ----- ------ Total Princeton/ East Brunswick, NJ: 16 2,319,482 93.0% $29.08 ==== ========= ===== ====== GREATER SAN FRANCISCO Office Embarcadero Center One CBD San Francisco CA 1 833,727 97.5% $43.51 Embarcadero Center Two CBD San Francisco CA 1 780,441 88.1% 47.68 Embarcadero Center Three CBD San Francisco CA 1 773,581 93.7% 43.86 Embarcadero Center Four CBD San Francisco CA 1 935,723 91.5% 62.49 Federal Reserve CBD San Francisco CA 1 149,592 100.0% 49.43 West Tower CBD San Francisco CA 1 473,427 99.6% 50.43 (1)611 Gateway South San Francisco CA 1 250,825 0.0% -- 601 and 651 Gateway South San Francisco CA 2 506,449 85.5% 38.11 ---- --------- ----- ------ 9 4,703,765 87.9% $48.63 ---- --------- ----- ------ Office/Technical Hilltop Office Center South San Francisco CA 9 144,366 87.5% $14.90 ---- --------- ----- ------ Industrial 560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 10.30 430 Rozzi Place South San Francisco CA 1 20,000 100.0% 11.66 2391 West Winton Hayward CA 1 220,213 100.0% 5.19 ---- --------- ----- ------ 3 280,213 100.0% $ 6.38 ---- --------- ----- ------ Total Greater San Francisco: 21 5,128,344 88.6% $45.09 ==== ========= ===== ====== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE PROPERTY LISTING - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
20
ANNUALIZED REVENUE NUMBER OF PER SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF ---------- --------- ---------- ---------- ----------- BALTIMORE, MD Office Candler Building Baltimore MD 1 540,706 96.1% $19.15 100 East Pratt Street Baltimore MD 1 635,323 98.2% 30.90 ---- ---------- ----- ------ Total Baltimore, MD: 2 1,176,029 97.2% $25.56 ==== ========== ===== ====== RICHMOND, VA Office Riverfront Plaza Richmond VA 1 900,586 92.0% $24.02 ==== ========== ===== ====== BUCKS COUNTY, PA Industrial 38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $ 5.24 ==== ========== ===== ====== Total In-Service Properties: 134 32,779,518 95.1% ==== ========== ===== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 TOP 20 TENANTS BY SQUARE FEET LEASED - --------------------------------------------------------------------------------
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT - -------------------------------------------------------------------------------
% OF TENANT SQ. FT. PORTFOLIO ------ --------- --------- 1 U.S. Government 2,305,973 7.03% 2 Citibank, N.A. 1,331,773 4.06% 3 Ernst and Young 1,062,203 3.24% 4 Lockheed Martin Corporation 676,414 2.06% 5 Shearman & Sterling 494,808 1.51% 6 Gillette Company 488,177 1.49% 7 Lehman Brothers 436,723 1.33% 8 Parametric Technology Corp.(1) 380,987 1.16% 9 Washington Group International 365,245 1.11% 10 Deutsche Bank 346,617 1.06% 11 Orbital Sciences Corporation 337,228 1.03% 12 Wachovia 319,966 0.98% 13 TRW, Inc. 315,675 0.96% 14 Hunton & Williams 311,285 0.95% 15 T. Rowe Price Associates, Inc. 304,129 0.93% 16 Digitas 279,182 0.85% 17 Accenture(1) 265,622 0.81% 18 Marsh USA Inc. 260,362 0.79% 19 Tellabs Operations, Inc. 259,918 0.79% 20 Covance, Inc. 258,831 0.79% Total % of Portfolio Square Feet 32.95% Total % of Portfolio Revenue 34.02% - --------------- (1) These tenants occupy space in a property in which Boston Properties has a 25% interest. (2) Includes 97,205 sf of space in a property in which Boston Properties has a 50% interest and the remainder in a property in which Boston Properties has a 25% interest. 21
TENANT SQ. FT. ------ ------- Finnegan Henderson Farabow Garrett & Dunner, LLP(2) 348,542 U.S. Government 257,400 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 PORTFOLIO OVERVIEW - FFO - -------------------------------------------------------------------------------- PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS (1) FOR IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED SEPTEMBER 30, 2002 - --------------------------------------------------------------------------------
OFFICE/ GEOGRAPHIC AREA OFFICE(2) TECHNICAL INDUSTRIAL HOTEL TOTAL --------------- ---------- --------- ---------- ----- ----- Greater Boston 21.5% 0.8% 0.1% 3.2% 25.6% Greater Washington 18.9% 1.2% -- -- 20.1% Greater San Francisco 17.3% 0.2% 0.2% -- 17.7% Midtown Manhattan 27.2% -- -- -- 27.2% Princeton/East Brunswick, NJ 4.8% -- -- -- 4.8% Baltimore, MD 2.6% -- -- -- 2.6% Richmond, VA 1.9% -- -- -- 1.9% Bucks County, PA -- -- 0.1% -- 0.1% ------- -------- ------- ------- ------- Total 94.2% 2.2% 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
GEOGRAPHIC AREA CBD SUBURBAN TOTAL --------------- --- -------- ----- Greater Boston 17.6% 8.0% 25.6% Greater Washington 9.5% 10.6% 20.1% Greater San Francisco 15.9% 1.7% 17.6% Midtown Manhattan 27.3% -- 27.3% Princeton/East Brunswick, NJ -- 4.8% 4.8% Baltimore, MD 2.6% -- 2.6% Richmond, VA 1.9% -- 1.9% Bucks County, PA -- 0.1% 0.1% ------ ------ ------ Total 74.8% 25.2% 100.0% ======= ====== ====== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 OCCUPANCY ANALYSIS - -------------------------------------------------------------------------------- SAME PROPERTY OCCUPANCY - BY LOCATION - --------------------------------------------------------------------------------
SAME PROPERTY - BY TYPE OF PROPERTY - --------------------------------------------------------------------------------
CBD SUBURBAN TOTAL ------------------------------ ------------------------- -------------------------- LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 -------- ------------- -------------- ------------ ------------ ------------ ------------ Greater Boston 91.4% 90.9% 95.2% 94.5% 93.4% 92.8% Greater Washington 99.6% 99.6% 96.7% 97.0% 98.0% 98.1% Midtown Manhattan 97.8% 100.0% -- -- 97.8% 100.0% Baltimore, MD 97.2% 99.6% -- -- 97.2% 99.6% Princeton/East Brunswick, NJ -- -- 93.0% 92.8% 93.0% 92.8% Richmond, VA 92.0% 98.6% -- -- 92.0% 98.6% Greater San Francisco 93.8% 96.0% 90.2% 88.0% 93.1% 94.5% Bucks County, PA -- -- 100.0% 100.0% 100.0% 100.0% ------------- -------------- ------------ ------------ ------------ ------------ Total Portfolio 95.6% 97.1% 94.9% 94.6% 95.4% 96.1% ============= ============== ============ ============ ============ ============ 23
CBD SUBURBAN TOTAL ------------------------------ ------------------------- -------------------------- LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 -------- ------------- -------------- ------------ ------------ ------------ ------------ Total Office Portfolio 95.6% 97.1% 94.7% 94.4% 95.3% 96.2% Total Office/Technical Portfolio 100.0% 100.0% 94.7% 98.9% 94.9% 98.9% Total Industrial Portfolio 0.0% 0.0% 100.0% 87.3% 100.0% 87.3% ------------- -------------- ------------ ------------ ------------ ------------ Total Portfolio 95.6% 97.1% 94.9% 94.6% 95.4% 96.1% ============= ============== ============ ============ ============ ============ BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE OFFICE PROPERTIES - -------------------------------------------------------------------------------- LEASE EXPIRATIONS - --------------------------------------------------------------------------------
OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRING LEASES EXPIRING LEASES WITH EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. - ------------- ------------------ ------------------- ---------------------- -------------------- ------------------------ 2002 379,748 $14,509,562 $38.21 $ 15,119,033 39.81 2003 1,290,144 44,311,486 34.35 44,387,766 34.41 2004 2,514,528 95,405,643 37.94 96,090,704 38.21 2005 2,422,943 89,518,605 36.95 92,382,537 38.13 2006 3,743,135 156,495,304 41.81 163,598,472 43.71 2007 2,239,149 84,532,178 37.75 88,486,672 39.52 2008 1,359,764 55,654,134 40.93 56,202,725 41.33 2009 2,176,765 80,986,399 37.20 90,541,293 41.59 2010 1,211,520 55,303,563 45.65 63,231,588 52.19 2011 2,680,027 106,261,091 39.65 122,805,566 45.82 Thereafter 7,678,717 370,420,759 48.24 440,919,003 57.42 YEAR OF LEASE PERCENTAGE OF EXPIRATION TOTAL SQUARE FEET - ------------- ----------------- 2002 1.29% 2003 4.37% 2004 8.52% 2005 8.21% 2006 12.69% 2007 7.59% 2008 4.61% 2009 7.38% 2010 4.11% 2011 9.08% Thereafter 26.03% - ------------------- * Includes approximately 1,200,000 of retail square footage. 24
CBD SUBURBAN TOTAL ------------------------------ -------------------------- ----------------------------- LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 -------- ------------- ------------- ------------- ----------- ------------ ------------ Greater Boston 92.7% 90.7% 94.4% 94.1% 93.5% 92.4% Greater Washington 99.6% 99.6% 97.9% 96.5% 98.7% 98.0% Midtown Manhattan 98.2% 99.9% -- -- 98.2% 99.9% Baltimore, MD 97.2% 99.6% -- -- 97.2% 99.6% Princeton/East Brunswick, NJ -- -- 93.0% 92.8% 93.0% 98.6% Richmond, VA 92.0% 98.6% -- -- 92.0% 92.8% Greater San Francisco 93.8% 96.0% 57.2% 92.6% 87.9% 95.6% Bucks County, PA n/a n/a n/a n/a n/a n/a ----- ----- ----- ----- ----- ----- Total Portfolio 96.2%* 97.1%* 92.5% 94.6% 95.0% 96.2% ===== ===== ===== ===== ===== ===== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE OFFICE/TECHNICAL PROPERTIES - -------------------------------------------------------------------------------- LEASE EXPIRATIONS - --------------------------------------------------------------------------------
OCCUPANCY BY LOCATION - --------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRING LEASES EXPIRING LEASES WITH EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. - ------------- ------------------ ------------------- ---------------------- -------------------- ------------------------ 2002 66,528 $1,310,113 $19.69 $1,310,113 $19.69 2003 118,915 1,681,967 14.14 1,683,918 14.16 2004 122,291 1,838,495 15.03 1,900,209 15.54 2005 147,214 2,094,286 14.23 2,202,490 14.96 2006 295,604 3,988,498 13.49 4,376,135 14.80 2007 314,435 5,060,305 16.09 5,574,803 17.73 2008 -- -- -- -- -- 2009 -- -- -- -- -- 2010 79,971 1,190,430 14.89 1,191,196 14.90 2011 137,321 2,377,814 17.32 2,577,815 18.77 Thereafter 203,112 3,441,327 16.94 3,996,784 19.68 YEAR OF LEASE PERCENTAGE OF EXPIRATION TOTAL SQUARE FEET - ------------- ----------------- 2002 4.34% 2003 7.76% 2004 7.98% 2005 9.60% 2006 19.28% 2007 20.51% 2008 -- 2009 -- 2010 5.22% 2011 8.96% Thereafter 13.25% 25
CBD SUBURBAN TOTAL ------------------------------ -------------------------- ----------------------------- LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 -------- ------------- ------------- ------------- ----------- ------------ ------------ Greater Boston 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Greater Washington -- -- 93.1% 97.0% 93.1% 97.0% Midtown Manhattan n/a n/a n/a n/a n/a n/a Baltimore, MD n/a n/a n/a n/a n/a n/a Princeton/East Brunswick, NJ n/a n/a n/a n/a n/a n/a Richmond, VA n/a n/a n/a n/a n/a n/a Greater San Francisco -- -- 87.5% 90.0% 87.5% 90.0% Bucks County, PA n/a n/a n/a n/a n/a n/a ----- ----- ----- ----- ----- ----- Total Portfolio 100.0% 100.0% 94.8% 97.2% 95.0% 97.3% ===== ===== ===== ===== ===== ===== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE INDUSTRIAL PROPERTIES - -------------------------------------------------------------------------------- LEASE EXPIRATIONS - --------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRING LEASES EXPIRING LEASES WITH EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F ---------- --------------- --------------- ----------------------- -------------------- ---------------------- 2002 23,904 $ 208,186 $ 8.71 $ 208,186 $ 8.71 2003 128,105 938,399 7.33 938,399 7.33 2004 321,213 1,645,668 5.12 1,645,668 5.12 2005 -- -- -- -- -- 2006 -- -- -- -- -- 2007 20,000 233,256 11.66 258,183 12.91 2008 60,000 342,000 5.70 386,724 6.45 2009 -- -- -- -- -- 2010 -- -- -- -- -- 2011 -- -- -- -- -- Thereafter -- -- -- -- --
YEAR OF LEASE PERCENTAGE OF EXPIRATION TOTAL SQUARE FEET ---------- ----------------- 2002 4.03% 2003 21.59% 2004 54.15% 2005 -- 2006 -- 2007 3.37% 2008 10.11% 2009 -- 2010 -- 2011 -- Thereafter -- OCCUPANCY BY LOCATION - ------------------------------------------------------------------------------- CBD SUBURBAN ------------------------------------- ------------------------------------ LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 -------- ---------------------- ------------ ------------ ---------------- Greater Boston -- -- 100.0% 89.8% Greater Washington n/a n/a n/a n/a Midtown Manhattan n/a n/a n/a n/a Baltimore, MD n/a n/a n/a n/a Princeton/East Brunswick, NJ n/a n/a n/a n/a Richmond, VA n/a n/a n/a n/a Greater San Francisco -- -- 100.0% 78.6% Bucks County, PA -- -- 100.0% 100.0% --- --- ----- ----- Total Portfolio -- -- 100.0% 87.3% === === ===== ===== 26
TOTAL ------------------------------- LOCATION 30-SEP-02 30-SEP-01 -------- -------------- -------------- Greater Boston 100.0% 89.8% Greater Washington n/a n/a Midtown Manhattan n/a n/a Baltimore, MD n/a n/a Princeton/East Brunswick, NJ n/a n/a Richmond, VA n/a n/a Greater San Francisco 100.0% 78.6% Bucks County, PA 100.0% 100.0% ----- ----- Total Portfolio 100.0% 87.3% ===== ===== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE RETAIL PROPERTIES - ------------------------------------------------------------------------------- LEASE EXPIRATIONS - -------------------------------------------------------------------------------
ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS ---------- ---------------- --------------- ---------------------- -------------------- 2002 18,047 $ 1,532,490 $ 84.92 (1) $ 1,566,930 2003 193,160 6,022,037 31.18 6,013,082 2004 128,983 7,274,046 56.40 7,312,043 2005 95,177 4,360,256 45.81 4,504,812 2006 64,382 3,242,061 50.36 3,287,250 2007 63,363 2,884,956 45.53 3,091,587 2008 52,996 2,527,843 47.70 2,707,007 2009 35,048 1,575,948 44.97 1,681,298 2010 95,645 3,546,026 37.07 4,038,031 2011 41,689 2,603,088 62.44 3,012,005 Thereafter 453,675 24,014,568 52.93 29,091,847 (1) Includes $2,055,381 of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 27
ANNUALIZED REVENUES UNDER YEAR OF LEASE EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- ------------------------ ----------------- 2002 $ 86.82 1.57% 2003 31.13 16.82% 2004 56.69 11.23% 2005 47.33 8.29% 2006 51.06 5.61% 2007 48.79 5.52% 2008 51.08 4.61% 2009 47.97 3.05% 2010 42.22 8.33% 2011 72.25 3.63% Thereafter 64.12 39.51% BOSTON PROPERTIES, INC. THIRD QUARTER 2002 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES - -------------------------------------------------------------------------------- LEASE EXPIRATION - --------------------------------------------------------------------------------
RENTABLE SQUARE CURRENT ANNUALIZED CURRENT ANNUALIZED YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER REVENUES UNDER EXPIRATION EXPIRING LEASES EXPIRING LEASES EXPIRING LEASES P.S.F ---------- ---------------- --------------- --------------------- 2002 488,227 $ 17,560,351 $ 35.97 2003 1,730,324 52,953,889 30.60 2004 3,087,015 106,163,853 34.39 2005 2,665,334 95,973,148 36.01 2006 4,103,121 163,725,863 39.90 2007 2,636,947 92,710,695 35.16 2008 1,472,760 58,523,977 39.74 2009 2,211,813 82,562,347 37.33 2010 1,387,136 60,040,019 43.28 2011 2,859,037 111,241,993 38.91 Thereafter 8,335,504 397,876,654 47.73 OCCUPANCY BY LOCATION ------------------------------------------------------------------------------
ANNUALIZED ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE EXPIRING LEASES EXPIRING LEASES WITH PERCENTAGE OF EXPIRATION WITH FUTURE STEP-UPS FUTURE STEP-UPS - P.S.F. TOTAL SQUARE FEET ---------- -------------------- ------------------------ ----------------- 2002 $ 18,204,262 $ 37.29 1.49% 2003 53,023,165 30.64 5.28% 2004 106,948,625 34.64 9.42% 2005 99,089,839 37.18 8.13% 2006 171,261,857 41.74 12.52% 2007 97,411,245 36.94 8.04% 2008 59,296,456 40.26 4.49% 2009 92,222,591 41.70 6.75% 2010 68,460,816 49.35 4.23% 2011 128,395,386 44.91 8.72% Thereafter 474,007,634 56.87 25.43% 28
CBD SUBURBAN TOTAL --------------------------- ------------------------ ---------------------- LOCATION 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 30-SEP-02 30-SEP-01 - -------- ----------- ----------- ----------- ---------- ---------- --------- Greater Boston 92.8% 90.9% 95.3% 94.6% 94.0% 92.9% Greater Washington 99.6% 99.6% 97.0% 96.6% 98.1% 97.8% Midtown Manhattan 98.2% 99.9% - - 98.2% 99.9% Baltimore, MD 97.2% 99.6% - - 97.2% 99.6% Princeton/East Brunswick, NJ - - 93.0% 92.8% 93.0% 98.6% Richmond, VA 92.0% 98.6% - - 92.0% 92.8% Greater San Francisco 93.8% 96.0% 71.0% 88.0% 88.6% 94.5% Bucks County, PA - - 100.0% 100.0% 100.0% 100.0% ----------- ----------- ----------- ---------- ---------- --------- Total Portfolio 96.2% 96.0% 93.2% 94.6% 95.1% 96.1% =========== =========== =========== ========== ========== ========= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES - ------------------------------------------------------------------------------- LEASE EXPIRATIONS - GREATER BOSTON - -------------------------------------------------------------------------------
OFFICE --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ---------------- --------------- -------------------- 2002 203,707 $ 5,648,883 $ 5,648,883 2003 303,303 10,437,994 10,456,188 2004 663,548 24,862,859 25,269,953 2005 873,710 34,008,791 34,748,112 2006 567,757 20,634,277 21,137,248 2007 378,825 15,784,906 16,744,656 2008 112,472 3,560,286 3,585,547 2009 938,426 33,613,515 37,050,207 2010 170,346 6,781,620 7,702,342 2011 765,559 26,748,280 31,887,390 Thereafter 1,286,459 47,050,287 58,045,600
OFFICE/TECHNICAL --------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- ----------------- --------------- ------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 253,704 3,328,641 3,663,288 2007 144,140 1,752,912 2,208,262 2008 - - - 2009 - - - 2010 - - - 2011 80,000 1,579,750 1,779,750 Thereafter 67,362 1,312,022 1,618,519
INDUSTRIAL ----------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 23,904 $208,186 $ 208,186 2003 128,105 938,399 938,399 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - (1) Includes $2,055,381 of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 29
INDUSTRIAL ----------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 7,548 $1,135,016 (1) $1,169,456 2003 159,471 4,296,480 4,298,280 2004 78,214 5,017,024 5,017,024 2005 58,986 2,410,985 2,488,986 2006 15,154 1,058,849 1,065,529 2007 - 30,000 35,000 2008 6,666 475,825 475,825 2009 - - - 2010 37,110 1,344,031 1,492,471 2011 11,599 619,611 668,111 Thereafter 233,568 8,718,251 9,473,822 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES - ------------------------------------------------------------------------------- QUARTERLY LEASE EXPIRATIONS - GREATER BOSTON - -------------------------------------------------------------------------------
OFFICE -------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ 203,707 $ 5,648,883 $ 5,648,883 ---------------------- ------------------ -------------------- Total 2002 203,707 5,648,883 5,648,883 ====================== ================== ==================== Q1 2003 105,155 3,926,703 3,926,703 Q2 2003 60,194 1,885,145 1,905,005 Q3 2003 102,554 3,685,844 3,685,844 Q4 2003 35,400 940,302 938,637 ---------------------- ------------------ -------------------- Total 2003 303,303 10,437,994 10,456,188 ====================== ================== ====================
OFFICE/TECHNICAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ - $ - $ - ------------------- ------------------- ------------------- Total 2002 - - - =================== =================== =================== Q1 2003 - - - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------- ------------------- ------------------- Total 2003 - - - =================== =================== ===================
INDUSTRIAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ 23,904 $ 208,186 $ 208,186 ----------- ----------- ----------- Total 2002 23,904 208,186 208,186 =========== =========== =========== Q1 2003 - - - Q2 2003 - - - Q3 2003 128,105 938,399 938,399 Q4 2003 - - - ----------- ----------- ----------- Total 2003 128,105 938,399 938,399 =========== =========== =========== 30
RETAIL -------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ 7,548 $ 1,135,016 $ 1,169,456 ------------ -------------- --------------- Total 2002 7,548 1,135,016 1,169,456 ============ ============== =============== Q1 2003 133,632 540,512 605,312 Q2 2003 4,000 987,002 924,002 Q3 2003 - 66,000 54,000 Q4 2003 21,839 2,702,966 2,714,966 ------------ -------------- --------------- Total 2003 159,471 4,296,480 4,298,280 ============ ============== =============== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE GREATER WASHINGTON PROPERTIES - ------------------------------------------------------------------------------- LEASE EXPIRATIONS - GREATER WASHINGTON - -------------------------------------------------------------------------------
OFFICE --------------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 35,496 $ 1,093,710 $ 1,093,710 2003 138,484 4,185,440 4,220,905 2004 507,512 17,042,169 17,356,401 2005 471,815 16,540,552 17,709,061 2006 981,016 38,841,822 40,963,994 2007 613,188 19,444,845 19,905,992 2008 426,365 17,089,170 13,776,621 2009 435,996 14,891,492 16,485,422 2010 438,370 16,932,464 20,110,833 2011 1,062,026 31,418,847 38,081,807 Thereafter 1,492,648 49,690,253 57,252,925
OFFICE/TECHNICAL --------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 61,164 $ 1,217,622 $ 1,217,622 2003 80,504 1,045,607 1,045,607 2004 67,791 1,190,159 1,226,493 2005 101,345 1,446,746 1,518,966 2006 33,400 522,025 563,495 2007 159,945 3,176,593 3,210,541 2008 - - - 2009 - - - 2010 79,971 1,190,430 1,191,196 2011 57,321 798,065 798,065 Thereafter 135,750 2,129,305 2,378,265
INDUSTRIAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 31
RETAIL ----------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- 2002 2,162 $ 68,055 $68,055 2003 - - - 2004 3,026 137,756 140,782 2005 4,274 136,832 140,178 2006 3,309 115,200 115,684 2007 14,952 363,231 371,808 2008 16,338 575,463 670,555 2009 - - - 2010 16,553 380,721 446,488 2011 11,221 466,963 528,386 Thereafter 37,852 963,076 1,419,370 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE GREATER WASHINGTON PROPERTIES - ------------------------------------------------------------------------------- QUARTERLY LEASE EXPIRATIONS - GREATER WASHINGTON - -------------------------------------------------------------------------------
OFFICE -------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $35,496 $ 1,093,710 $ 1,093,710 ------------------- ------------------ -------------------- Total 2002 35,496 1,093,710 1,093,710 =================== ================== ==================== Q1 2003 10,922 305,891 305,891 Q2 2003 82,252 2,443,341 2,446,353 Q3 2003 23,624 849,590 859,500 Q4 2003 21,686 586,618 609,161 ------------------- ------------------ -------------------- Total 2003 138,484 4,185,440 4,220,905 =================== ================== ====================
OFFICE/TECHNICAL --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ 61,164 $ 1,217,622 $ 17,622 ------------------- ------------------ -------------------- Total 2002 61,164 1,217,622 1,217,622 =================== ================== ==================== Q1 2003 25,384 329,992 329,992 Q2 2003 23,439 351,284 351,284 Q3 2003 31,681 364,332 364,332 Q4 2003 - - - ------------------- ------------------ -------------------- Total 2003 80,504 1,045,607 1,045,607 =================== ================== ====================
INDUSTRIAL -------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ - $ - $ - --------------------------------------------------------------- Total 2002 - - - =============================================================== Q1 2003 - - - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - --------------------------------------------------------------- Total 2003 - - - =============================================================== 32
RETAIL --------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ---------- --------------- --------------- -------------------- Q4 2002 $ 2,162 $ 68,055 $ 68,055 ------------------- -------------------- -------------------- Total 2002 2,162 68,055 68,055 =================== ==================== ==================== Q1 2003 - - - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ------------------- -------------------- ------------------- Total 2003 - - - =================== ==================== ==================== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES ================================================================================ LEASE EXPIRATIONS - GREATER SAN FRANCISCO - --------------------------------------------------------------------------------
OFFICE OFFICE/TECHNICAL ---------------------------------------------------------- ------------------------------------------------------ Annualized Rentable Annualized Revenues Under Square Current Revenues Under Rentable Square Current Annualized Expiring Leases Footage Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ---------------- ---------------- --------------- --------------- 2002 89,745 $ 5,191,575 $ 5,801,046 5,364 $ 92,491 $ 92,491 2003 452,633 17,452,395 17,457,886 38,411 636,360 638,311 2004 634,854 29,096,804 28,910,035 54,500 648,336 673,716 2005 346,741 15,749,016 16,160,066 45,869 647,540 683,525 2006 904,582 44,559,519 46,318,999 8,500 137,832 149,352 2007 452,808 21,024,050 21,881,459 10,350 130,800 156,000 2008 150,573 6,298,806 6,556,190 - - - 2009 262,305 11,504,616 12,203,014 - - - 2010 169,761 10,472,306 12,261,658 - - - 2011 202,709 18,272,662 18,765,256 - - - Thereafter 189,573 8,887,912 9,753,004 - - - 33
INDUSTRIAL RETAIL ---------------------------------------------------------- ------------------------------------------------------ Annualized Annualized Revenues Under Rentable Current Revenues Under Rentable Square Current Annualized Expiring Leases Square Footage Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ------------ ----------------- --------------- --------------- 2002 - $ - $ - 7,902 $ 284,554 $ 284,554 2003 - - - 28,859 1,377,818 1,351,016 2004 160,213 801,668 801,668 32,324 1,495,310 1,511,920 2005 - - - 23,802 1,220,871 1,242,858 2006 - - - 18,043 901,480 908,608 2007 20,000 233,256 258,183 22,425 1,344,635 1,427,788 2008 60,000 342,000 386,724 25,299 1,303,514 1,365,200 2009 - - - 35,048 1,575,948 1,681,298 2010 - - - 30,749 1,283,356 1,464,401 2011 - - - 3,474 194,944 229,226 Thereafter - - - 45,061 2,782,662 3,125,972 QUARTERLY LEASE EXPIRATIONS - GREATER SAN FRANCISCO - --------------------------------------------------------------------------------
OFFICE OFFICE/TECHNICAL ------------------------------------------------------------ ---------------------------------------------------- Annualized Annualized Revenues Under Rentable Current Revenues Under Rentable Square Current Annualized Expiring Leases Square Footage Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ------------ --------------- --------------- --------------- Q4 2002 $ 89,745 $ 5,191,575 $ 5,801,046 $ 5,364 $ 92,491 $ 92,491 --------------- ------------- ------------- ------------- ------------- ----------- Total 2002 89,745 5,191,575 5,801,046 5,364 92,491 92,491 --------------- ------------- ------------- ------------- ------------- ----------- --------------- ------------- ------------- ------------- ------------- ----------- Q1 2003 102,297 4,177,261 4,177,261 5,255 97,683 97,683 Q2 2003 58,212 2,561,449 2,561,449 19,001 300,673 300,673 Q3 2003 14,437 455,581 455,581 10,547 171,048 171,048 Q4 2003 277,687 10,258,105 10,263,596 3,608 66,956 68,907 --------------- ------------- ------------- ------------- ------------- ----------- Total 2003 452,633 17,452,395 17,457,886 38,411 636,360 638,311 --------------- ------------- ------------- ------------- ------------- ----------- --------------- ------------- ------------- ------------- ------------- -----------
INDUSTRIAL -------------------------------------------------------- Annualized Revenues Under Rentable Square Current Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ------------ Q4 2002 $ - $ - $ - ---------------- ---------------- ---------------- Total 2002 - - - ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- Q1 2003 - - - Q2 2003 - - - Q3 2003 - - - Q4 2003 - - - ---------------- ---------------- ---------------- Total 2003 - - - ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- 34
RETAIL ----------------------------------------------------------------- Annualized Rentable Square Current Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups ---------- ---------------- --------------- -------------------- Q4 2002 $ 7,902 $ 284,554 $ 284,554 ------------- ------------ ---------------- Total 2002 7,902 284,554 284,554 ------------- ------------ ---------------- ------------- ------------ ---------------- Q1 2003 2,431 72,000 36,000 Q2 2003 6,630 447,818 447,818 Q3 2003 - - - Q4 2003 19,798 858,000 867,198 ------------- ------------ ---------------- Total 2003 28,859 1,377,818 1,351,016 ------------- ------------ ---------------- ------------- ------------ ---------------- IN-SERVICE MIDTOWN MANHATTAN PROPERTIES ================================================================================ LEASE EXPIRATIONS - MIDTOWN MANHATTAN - --------------------------------------------------------------------------------
OFFICE -------------------------------------------------------------------- Annualized Revenues Under Rentable Square Current Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ------------ 2002 33,036 $ 2,091,376 $ 2,091,376 2003 134,117 6,031,344 6,031,344 2004 164,723 9,325,127 9,340,151 2005 109,624 6,627,291 6,648,941 2006 481,316 29,007,226 30,686,830 2007 201,557 11,856,184 12,058,854 2008 462,395 24,751,523 27,628,069 2009 250,804 13,582,079 16,084,393 2010 258,528 15,816,611 17,324,007 2011 390,174 22,179,546 25,558,864 Thereafter 4,437,382 256,724,326 306,586,456
OFFICE/TECHNICAL -------------------------------------------------------------- Current Annualized Rentable Square Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups ---------- ----------------- --------------- -------------------- 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - -
INDUSTRIAL --------------------------------------------------------------------- Annualized Revenues Under Rentable Square Current Annualized Expiring Leases Year of Lease Footage Subject to Revenues Under with future Expiration Expiring Leases Expiring Leases step-ups ---------- ---------------- --------------- ------------ 2002 - $ - $ - 2003 - - - 2004 - - - 2005 - - - 2006 - - - 2007 - - - 2008 - - - 2009 - - - 2010 - - - 2011 - - - Thereafter - - - 35
RETAIL ---------------------------------------------------------------- Current Annualized Rentable Square Annualized Revenues Under Year of Lease Footage Subject to Revenues Under Expiring Leases Expiration Expiring Leases Expiring Leases with future step-ups ---------- ----------------- --------------- -------------------- 2002 435 $ 36,143 $ 36,143 2003 2,315 291,126 307,173 2004 3,800 248,430 266,573 2005 2,819 338,511 365,887 2006 17,700 775,686 806,582 2007 6,876 644,793 709,055 2008 3,232 152,587 169,129 2009 - - - 2010 10,608 523,164 615,535 2011 15,395 1,321,569 1,586,282 Thereafter 135,794 11,538,480 15,058,799 BOSTON PROPERTIES, INC. THIRD QUARTER IN-SERVICE MIDTOWN MANHATTAN PROPERTIES QUARTERLY LEASE EXPIRATIONS -- MIDTOWN MANHATTAN - ----------------------------------------------------------------------------------------------------------------------------------- OFFICE OFFICE/TECHNICAL ------------------------------------------------------------- ------------------------------------------------- Annualized Revenue under Annualized Current Expiring Rentable Square Current Annualized Revenues Under Rentable Square Annualized Leased with Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenue under future Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases step-ups ------------- ------------------ ------------------ -------------------- ------------------ --------------- ------------ Q4 2002 $ 33,036 $ 2,091,376 $ 2,091,376 $ - $ - $ - --------------- --------------- ------------- ----------- ------------ ----------- Total 2002 33,036 2,091,376 2,091,376 - - - =============== =============== ============= =========== ============ =========== Q1 2003 - - - - - - Q2 2003 49,602 2,595,415 2,595,415 - - - Q3 2003 59,016 2,081,202 2,081,202 - - - Q4 2003 25,499 1,353,726 1,353,726 - - - --------------- --------------- ------------- ----------- ------------ ----------- Total 2003 134,117 6,031,344 6,031,344 - - - =============== =============== ============= =========== ============ =========== INDUSTRIAL RETAIL ------------------------------------------------------------- ------------------------------------------------- Annualized Revenue under Annualized Current Expiring Rentable Square Current Annualized Revenues Under Rentable Square Annualized Leased with Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenue under future Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases step-ups ------------- ------------------ ------------------ -------------------- ------------------ --------------- ------------ Q4 2002 $ - $ - $ - $ 435 $ 36,143 $ 36,143 --------------- --------------- ------------- ----------- ------------ ----------- Total 2002 - - - 435 36,143 36,143 =============== =============== ============= =========== ============ =========== Q1 2003 - - - - - - Q2 2003 - - - - - - Q3 2003 - - - 1,515 62,780 64,220 Q4 2003 - - - 800 228,346 242,953 --------------- --------------- ------------- ----------- ------------ ----------- Total 2003 - - - 2,315 291,126 307,173 =============== =============== ============= =========== ============ =========== 36 37
BOSTON PROPERTIES, INC. THIRD QUARTER 2002 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 REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION TO EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 3,966 $ 120,488 $ 120,488 - $ - $ - 2003 93,227 2,547,121 2,547,121 - - - 2004 427,170 12,561,874 12,638,337 - - - 2005 228,388 6,927,248 7,016,827 - - - 2006 83,165 2,710,561 2,854,390 - - - 2007 503,678 13,601,023 14,836,276 - - - 2008 - - - - - - 2009 161,514 4,886,156 5,645,940 - - - 2010 145,675 4,690,766 5,105,120 - - - 2011 254,941 7,522,626 8,375,570 - - - Thereafter 237,429 7,117,566 7,805,851 - - - INDUSTRIAL RETAIL ---------------------------------------------------------- ----------------------------------------------------------- ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION TO EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- 2002 - $ - $ - - $ - $ - 2003 - - - - - - 2004 - - - 2,904 48,000 48,000 2005 - - - - - - 2006 - - - - - - 2007 - - - - - - 2008 - - - - - - 2009 - - - - - - 2010 - - - - - - 2011 - - - - - - Thereafter - - - - - - 38
BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES - ------------------------------------------------------------------------------------------------------------------------------------ QUARTERLY 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 REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION TO EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Q4 2002 $ 3,966 $ 120,488 $ 120,488 $ - $ - $ - ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Total 2002 3,966 120,488 120,488 - - - ================== ================== ==================== ================== ================== ==================== Q1 2003 7,986 237,657 237,657 - - - Q2 2003 2,242 70,927 70,927 - - - Q3 2003 11,302 309,629 309,629 - - - Q4 2003 71,697 1,928,908 1,928,908 - - - ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Total 2003 93,227 2,547,121 2,547,121 - - - ================== ================== ==================== ================== ================== ==================== INDUSTRIAL RETAIL ---------------------------------------------------------- ----------------------------------------------------------- ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION TO EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Q4 2002 $ - $ - $ - $ - $ - $ - ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Total 2002 - - - - - - ================== ================== ==================== ================== ================== ==================== Q1 2003 - - - - - - Q2 2003 - - - - - - Q3 2003 - - - - - - Q4 2003 - - - - - - ------------------ ------------------ -------------------- ------------------ ------------------ -------------------- Total 2003 - - - - - - ================== ================== ==================== ================== ================== ==================== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE OTHER PROPERTIES - -------------------------------------------------------------------------------- LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA) - --------------------------------------------------------------------------------
OFFICE ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2002 13,798 $ 363,530 $ 363,530 2003 168,380 3,657,192 3,674,322 2004 116,721 2,516,811 2,575,828 2005 392,665 9,665,707 10,099,531 2006 725,299 20,741,898 21,637,011 2007 89,093 2,821,171 3,059,435 2008 207,959 3,954,348 4,656,299 2009 127,720 2,508,542 3,072,317 2010 28,840 609,797 727,629 2011 4,618 119,131 136,679 Thereafter 35,226 950,415 1,475,166 OFFICE/TECHNICAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2002 $ -- $ -- $ -- 2003 -- -- -- 2004 -- -- -- 2005 -- -- -- 2006 -- -- -- 2007 -- -- -- 2008 -- -- -- 2009 -- -- -- 2010 -- -- -- 2011 -- -- -- Thereafter -- -- -- 39
INDUSTRIAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- 2002 -- $ -- $ -- 2003 -- -- -- 2004 161,000 844,000 844,000 2005 -- -- -- 2006 -- -- -- 2007 -- -- -- 2008 -- -- -- 2009 -- -- -- 2010 -- -- -- 2011 -- -- -- Thereafter -- -- -- RETAIL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- 2002 -- $ 8,721 $ 8,721 2003 2,515 56,613 56,613 2004 8,715 327,526 327,745 2005 5,296 253,057 266,902 2006 10,176 390,847 390,847 2007 19,110 502,296 547,935 2008 1,461 20,454 26,298 2009 -- -- -- 2010 625 14,754 19,135 2011 -- -- -- Thereafter 1,400 12,100 13,884 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 IN-SERVICE OTHER PROPERTIES - -------------------------------------------------------------------------------- QUARTERLY LEASE EXPIRATIONS - -------------------------------------------------------------------------------- OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA) - --------------------------------------------------------------------------------
OFFICE ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- Q4 2002 $ 13,798 $ 363,530 $ 363,530 ---------- ---------- ---------- Total 2002 13,798 363,530 363,530 ========== ========== ========== Q1 2003 41,400 683,125 683,125 Q2 2003 28,654 675,737 678,493 Q3 2003 22,240 466,368 475,442 Q4 2003 76,086 1,831,962 1,837,262 ---------- ---------- ---------- Total 2003 168,380 3,657,192 3,674,322 ========== ========== ========== OFFICE/TECHNICAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS ------------- ------------------ ------------------ -------------------- Q4 2002 $ -- $ -- $ -- ---------- ---------- ---------- Total 2002 -- -- -- ========== ========== ========== Q1 2003 -- -- -- Q2 2003 -- -- -- Q3 2003 -- -- -- Q4 2003 -- -- -- ---------- ---------- ---------- Total 2003 -- -- -- ========== ========== ========== 40
INDUSTRIAL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- Q4 2002 $ -- $ -- $ -- ---------- ---------- ---------- Total 2002 -- -- -- ========== ========== ========== Q1 2003 -- -- -- Q2 2003 -- -- -- Q3 2003 -- -- -- Q4 2003 -- -- -- ---------- ---------- ---------- Total 2003 -- -- -- ========== ========== ========== RETAIL ------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ -------------------- Q4 2002 $ -- $ 8,721 $ 8,721 ---------- ---------- ---------- Total 2002 -- 8,721 8,721 ========== ========== ========== Q1 2003 -- -- -- Q2 2003 -- -- -- Q3 2003 2,515 56,613 56,613 Q4 2003 -- -- -- ---------- ---------- ---------- Total 2003 2,515 56,613 56,613 ========== ========== ========== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 CBD PROPERTIES - ------------------------------------------------------------------------------- LEASE EXPIRATIONS
GREATER BOSTON GREATER WASHINGTON ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 91,551 $ 3,815,163 $ 3,849,603 13,239 $ 494,339 $ 494,339 2003 226,413 6,768,541 6,790,201 33,736 1,226,099 1,245,894 2004 365,726 18,078,446 18,376,345 167,181 6,684,502 6,936,558 2005 593,165 25,758,436 26,342,316 226,601 8,890,946 9,479,300 2006 168,144 8,291,418 8,371,876 604,267 28,420,993 29,971,052 2007 147,709 7,446,165 7,895,767 297,426 9,892,622 10,107,934 2008 35,334 1,466,051 1,466,051 39,406 1,459,543 1,644,567 2009 661,277 23,368,734 26,143,440 435,996 14,891,492 16,485,422 2010 150,555 6,221,129 7,041,334 373,515 14,311,478 16,897,137 2011 437,815 20,798,590 25,011,357 190,472 7,009,427 8,594,548 Thereafter 975,072 38,945,073 47,457,887 785,444 30,595,479 33,385,017
NEW YORK SAN FRANCISCO ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 33,471 $ 2,127,519 $ 2,127,519 97,647 $ 5,476,129 $ 6,085,600 2003 136,432 6,322,470 6,338,517 225,638 10,035,196 10,008,394 2004 168,523 9,573,557 9,606,724 625,301 28,933,581 28,734,093 2005 112,443 6,965,802 7,014,828 315,939 14,408,361 14,461,715 2006 499,016 29,782,911 31,493,412 888,487 43,302,719 44,758,003 2007 208,433 12,500,977 12,767,909 453,461 21,685,176 22,610,665 2008 465,627 24,904,109 27,797,197 171,454 7,435,320 7,754,390 2009 250,804 13,582,079 16,084,393 292,097 12,903,963 13,673,021 2010 269,136 16,339,774 17,939,543 200,510 11,755,662 13,726,059 2011 405,569 23,501,116 27,145,146 196,163 18,166,197 18,693,073 Thereafter 4,573,176 268,262,806 321,645,256 234,634 11,670,574 12,878,976 41
NEW JERSEY OTHER ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 - $- $- 3,7981 $372,250.80 $72,250.803 2003 - - - 170,895 3,713,805 3,730,935 2004 - - - 125,436 2,844,336 2,903,572 2005 - - - 397,961 9,918,764 10,366,433 2006 - - - 735,475 21,132,745 22,027,858 2007 - - - 108,203 3,323,467 3,607,370 2008 - - - 209,420 3,974,802 4,682,597 2009 - - - 127,720 2,508,542 3,072,317 2010 - - - 29,465 624,551 746,765 2011 - - - 4,618 119,131 136,679 Thereafter - - - 36,626 962,515 1,489,049 BOSTON PROPERTIES, INC. THIRD QUARTER 2002 SUBURBAN PROPERTIES - ------------------------------------------------------------------------------- LEASE EXPIRATIONS
GREATER BOSTON GREATER WASHINGTON ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 143,608 $ 3,176,922 $ 3,176,922 85,583 $ 1,885,048 $ 1,885,048 2003 364,466 8,904,331 8,902,665 185,252 4,004,949 4,020,619 2004 376,036 11,801,437 11,910,631 411,148 11,685,582 11,787,118 2005 339,531 10,661,340 10,894,781 350,833 9,233,185 9,888,905 2006 668,471 16,730,350 17,494,188 413,458 11,058,054 11,672,122 2007 375,256 10,121,652 11,092,151 490,659 13,092,047 13,380,408 2008 83,804 2,570,059 2,595,320 403,297 16,205,091 12,802,609 2009 277,149 10,244,781 10,906,767 - - - 2010 56,901 1,904,522 2,153,479 161,379 4,192,137 4,851,380 2011 419,343 8,149,050 9,323,894 940,096 25,674,447 30,813,710 Thereafter 612,317 18,135,487 21,680,055 880,806 22,187,155 27,665,543
NEW YORK SAN FRANCISCO ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 - $- $- 5,364 $ 92,491 $ 92,491 2003 - - - 294,265 9,431,378 9,438,820 2004 - - - 256,590 3,108,538 3,163,245 2005 - - - 100,473 3,209,066 3,624,734 2006 - - - 42,638 2,296,112 2,618,956 2007 - - - 52,122 1,047,565 1,112,765 2008 - - - 64,418 509,000 553,724 2009 - - - 5,256 176,602 211,291 2010 - - - - - - 2011 - - - 10,020 301,409 301,409 Thereafter - - - - - - 42
NEW JERSEY OTHER ------------------------------------------------------- ------------------------------------------------------------ ANNUALIZED REVENUES UNDER ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED EXPIRING LEASES RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER WITH FUTURE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS - ------------- ------------------ ------------------ --------------- ------------------ ------------------ -------------------- 2002 3,966 $ 120,488 $ 120,488 - $ - $ - 2003 93,227 2,547,121 2,547,121 - - - 2004 430,074 12,609,874 12,686,337 161,000 844,000 844,000 2005 228,388 6,927,248 7,016,827 - - - 2006 83,165 2,710,561 2,854,390 - - - 2007 503,678 13,601,023 14,836,276 - - - 2008 - - - - - - 2009 161,514 4,886,156 5,645,940 - - - 2010 145,675 4,690,766 5,105,120 - - - 2011 254,941 7,522,626 8,375,570 - - - Thereafter 237,429 7,117,566 7,805,851 - - - BOSTON PROPERTIES, INC. THIRD QUARTER 2002 HOTEL PERFORMANCE - ------------------------------------------------------------------------------- LONG WHARF MARRIOTT - BOSTON - -------------------------------------------------------------------------------
CAMBRIDGE CENTER MARRIOTT - ------------------------------------------------------------------------------
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE ------------------ ------------------- ------------ ------------- -------------- ----------- Occupancy 88.9% 91.5% -2.8% 84.4% 81.9%(1) 3.1% Average Daily Rate $232.27 $243.68 -4.7% $211.03 $240.69 -12.3% REVPAR $206.57 $222.97 -7.4% $178.13 $197.13 -9.6% RESIDENCE INN BY MARRIOTT - ------------------------------------------------------------------------------
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE ------------------ ------------------- ------------ ------------- -------------- ----------- Occupancy 86.0% 83.3% 3.2% 77.6% 81.6% -4.9% Average Daily Rate $164.24 $185.35 -11.4% $170.68 $194.92 -12.4% REVPAR $141.30 $154.46 -8.5% $132.37 $159.05 -16.8%
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE ------------------ ------------------- ------------ ------------- -------------- ----------- Occupancy 90.8% 91.6% -0.9% 86.2% 88.9% -3.0% Average Daily Rate $148.20 $162.81 -9.0% $138.16 $162.71 -15.1% REVPAR $134.52 $149.19 -9.8% $119.13 $144.65 -17.6% (1) Room renovation project underway during 2001. 43
TOTAL HOTEL PERFORMANCE - ------------------------------------------------------------------------------ THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT 2002 2001 CHANGE 2002 2001 CHANGE ------------------ ------------------- ------------ ------------- -------------- ----------- Occupancy 88.1% 88.2% -0.1% 82.0% 83.2% -1.4% Average Daily Rate $186.82 $202.87 -7.9% $179.25 $205.62 -12.8% REVPAR $164.77 $179.49 -8.2% $147.05 $170.55 -13.8% BOSTON PROPERTIES, INC. THIRD QUARTER 2002 SAME PROPERTY PERFORMANCE - ------------------------------------------------------------------------------ OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES - ------------------------------------------------------------------------------
SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED SEPTEMBER 30, 2002 - ------------------------------------------------------------------------------
OFFICE OFFICE/TECHNICAL INDUSTRIAL HOTEL TOTAL ------------- -------------------- -------------------- ------------ --------------- Number of Properties 95 26 5 3 129 Square feet 26,299,218 1,501,211 593,222 937,874 29,331,525 Percent of in-service properties 85.8% 97.9% 100.0% 100.0% 87.0% Occupancy @ 9/30/01 96.2% 98.9% 87.3% - 96.1% Occupancy @ 9/30/02 95.3% 94.9% 100.0% - 95.4% Percent change from 3rd quarter 2002 over 3rd quarter 2001 Revenue (1) 3.2% -4.9% 13.9% -8.0% 2.6% Expense 5.6% 1.8% 23.5% 21.7% 5.8% Net Operating Income (1) 1.9% -6.5% 12.0% -13.6% 1.1% Revenue - cash basis (1) 2.3% -5.3% 13.9% -7.9% 1.9% Net Operating Income - cash basis (1) 0.6% -7.0% 12.0% -13.4% -0.1% (1) Does not include termination and early surrender income. (2) Represents increase in net rents on a "cash to cash" basis. (Actual net rent at time of expiration vs. initial net rent of new lease.) 44
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL --------- ---------------- ---------- --------- Vacant space available @07/01/02 (sf) 1,136,818 89,783 - 1,226,601 Square footage of leases expiring or - terminated 07/01/02-09/30/02 378,094 236,533 - 614,627 --------- ------- ----- --------- Total space for lease (sf) 1,514,912 326,316 - 1,841,228 ========= ======= ===== ========= New tenants (sf) 248,823 43,234 - 292,057 Renewals (sf) 184,899 207,027 - 391,926 --------- ------- ----- --------- Total space leased (sf) 433,722 250,261 - 683,983 ========= ======= ===== ========= Space available @ 9/30/02 (sf) 1,081,190 76,055 - 1,157,245 ========= ======= ===== ========= Net (increase)/decrease in available space (sf) 55,628 13,728 - 69,356 Average lease term (months) 77 27 - 59 2nd generation TI/Comm PSF $18.01 $1.90 $ - $12.11 Increase (decrease) in 2nd generation net rents (2) -13.4% 10.0% - -9.0% BOSTON PROPERTIES, INC. THIRD QUARTER 2002 PROPERTY PERFORMANCE ALL IN-SERVICE PROPERTIES - QUARTER ENDED SEPTEMBER 30, 2002 - ------------------------------------------------------------------------------
(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) Details of 1st and 2nd Generation Space:
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL --------- ---------------- ---------- --------- Vacant space available @ 07/01/02 (sf) 1,388,325 89,783 - 1,478,108 New development sf completed 250,825 - - 250,825 Square footage of leases expiring or terminated 07/01/02-09/30/02 371,237 236,533 - 607,770 --------- ---------------- ---------- --------- Total space for lease (sf) 2,010,387 326,316 - 2,336,703 ========= ================ ========== ========= New tenants (sf) 287,970 43,234 - 331,204 Renewals (sf) 184,899 207,027 - 391,926 --------- ---------------- ---------- --------- Total space leased (sf) 472,869 250,261 - 723,130(2) ========= ================ ========== ========= Space available @ 09/30/02 (sf) 1,537,518 76,055 - 1,613,573 ========= ================ ========== ========= Net (increase)/decrease in available space (sf) (149,193) 13,728 - (135,465) Average lease term (months) 77 27 - 60 2nd generation TI/Comm PSF $18.01 $1.90 $ - $12.11 Increase (decrease) in 2nd generation net rents (1) -13.4% 10.0% 0.0% -9.0% 45
Total 1st Generation 2nd Generation Leased ---------------- ------------------- ------------- Boston 32,645 146,079 178,724 Washington - 238,646 238,646 New York - - - San Francisco - 241,948 241,948 Princeton 6,502 57,310 63,812 ---------------- ------------------- ------------- 39,147 683,983 723,130 ================ =================== ============= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS - ------------------------------------------------------------------------------ HISTORICAL CAPITAL EXPENDITURES (IN THOUSANDS)
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS (2) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Q3 2002 Q2 2002 Q1 2002 2001 2000 ------- ------- ------- ---- ---- Recurring capital expenditures $4,266 $3,553 $2,946 $11,770 $11,201 Planned non-recurring capital expenditures associated with acquisition properties (1) 5,320 9,777 8,955 45,052 25,782 Hotel improvements, equipment upgrades and replacements 394 852 1,784 9,230 5,697 ----------- ------------- ------------- ------------ ------------ $9,980 $14,182 $ 13,685 $66,052 $42,680 =========== ============= ============= ============ ============ (1) Includes budgeted costs associated with the 18.4 million square feet of previously disclosed acquisitions. (2) Based on leases executed during the period. 46
Q3 2002 Q2 2002 Q1 2002 2001 2000 ------- ------- ------- ---- ---- Office Square feet 433,722 638,750 483,934 2,394,291 2,913,599 ------- ------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $18.01 $26.18 $20.95 $17.47 $13.82 ------- ------- ------- --------- --------- Office/Technical Square feet 250,261 6,214 1,047 348,178 694,536 ------- ------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $1.90 $1.68 $1.02 $3.13 $2.95 ------- ------- ------- --------- --------- Industrial Square feet - 221,000 - - 209,125 ------- ------- ------- --------- --------- Tenant improvement and lease commissions p.s.f. $- $0.68 $- $- $1.38 ------- ------- ------- --------- --------- Average tenant improvement and lease commission p.s.f. $12.11 $19.50 $20.91 $15.65 $11.16 ======= ======= ======= ========= ========= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS - ------------------------------------------------------------------------------ AS OF SEPTEMBER 30, 2002 ACQUISITIONS - ------------------------------------------------------------------------------
DISPOSITIONS - ------------------------------------------------------------------------------
ANTICIPATED INITIAL FUTURE TOTAL CURRENT PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY - -------- ------------- ----------- ---------- ---------- ---------- --------- 399 Park Avenue Sep-02 1,677,679 $1,064,000,000 $4,000,000 $1,068,000,000 100% ---------- -------------- ---------- -------------- --------- TOTAL VALUE CREATION PIPELINE - ACQUISITIONS 1,677,679 $1,064,000,000 $4,000,000 $1,068,000,000 100% ========== ============== ========== ============== ========= (1) Gains recognized for accounting purposes during Q3 2002. 47
NET PROPERTY DATE DISPOSED SQUARE FEET NET PROCEEDS BOOK VALUE GAIN -------- ------------- ----------- ------------ ---------- ---- Fullerton Square Mar-02 179,453 $22,193,973 $15,048,473 $7,145,500 7600 Boston Boulevard Mar-02 69,832 8,517,245 2,920,113 5,597,132(1) 7700 Boston Boulevard Mar-02 82,224 16,428,227 10,403,664 6,024,563(1) 7702 Boston Boulevard Mar-02 43,171 8,916,000 6,157,745 2,758,255(1) 681 Gateway - Land Jul-02 N/A 7,511,033 4,232,374 3,278,659 Herndon Lumber Site - Land Jul-02 N/A 5,194,800 4,042,016 1,152,784 Belvidere garage spaces Sep-02 N/A 1,305,000 1,201,970 103,030 ----------- ------------ ---------- --------- TOTAL DISPOSITIONS 374,680 $70,066,278 $44,006,355 $26,059,923 =========== ============ ========== ========= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
DEVELOPMENTS PLACED IN-SERVICE DURING 2002 - --------------------------------------------------------------------------------
# OF DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION BUILDINGS SQUARE FEET - ---------------------- ----------------- ------------------ -------- --------- ----------- Two Discovery Square (50% ownership) Q2 2002 Q1 2003 Reston, VA 1 184,487 Broad Run Business Park- Building E Q2 2002 Q2 2003 Dulles, VA 1 127,226 Shaws Supermarket Q2 2003 Q2 2003 Boston, MA 1 57,235 Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA 1 304,050 New Dominion Tech, Building Two Q2 2004 Q2 2004 Herndon, VA 1 257,400 Two Freedom Square (50% ownership) Q3 2002 Q3 2004 Reston, VA 1 405,252 Times Square Tower Q1 2004 Q4 2004 New York, NY 1 1,218,511 901 New York Avenue (25% ownership) Q3 2004 Q3 2005 Washington, D.C. 1 538,464 --------- -------------- TOTAL DEVELOPMENT PROPERTIES 8 3,092,625 ========= ============== AMOUNT ANTICIPATED TOTAL DRAWN AT CURRENT INVESTMENT TOTAL CONSTRUCTION SEPTEMBER 30, FUTURE EQUITY PERCENTAGE DEVELOPMENT PROPERTIES TO DATE INVESTMENT (1) LOAN 2002 REQUIREMENT LEASED - ---------------------- ------- ---------- ---- ------------- ----------- ---------- Two Discovery Square (50% ownership) $ 17,714,225 $ 22,663,000 (2) $ 20,625,000 13,218,623 $ - 81% Broad Run Business Park- Building E 15,954,319 19,946,000 - - 3,991,681 55% Shaws Supermarket 17,487,470 24,034,000 24,000,000 16,421,920 - 100% Waltham Weston Corporate Center 64,266,523 95,446,000 70,000,000 54,239,786 15,419,263 41% New Dominion Tech, Building Two 6,476,891 67,589,000 - - 61,112,109 100% Two Freedom Square (50% ownership) 38,832,689 49,336,000 (2) 45,000,000 (2) 31,013,011 - 58% Times Square Tower 326,684,560 653,500,000 493,500,000 191,044,013 24,359,453 0% 901 New York Avenue (25% ownership) 13,890,651 44,777,250 - - 30,886,599 60% ------------- ------------- ------------- ------------- ------------- -------- TOTAL DEVELOPMENT PROPERTIES $501,307,328 $977,291,250 $653,125,000 $305,937,353 $135,769,105 39% ============= ============= ============= ============= ============= ======== (1) Includes net revenues during lease-up period and cash component of hedge contracts. (2) Represents 50% of the total anticipated project-level investment and construction loan. 48
INITIAL STABILIZATION # OF IN SERVICE DATE DATE LOCATION BUILDINGS SQUARE FEET --------------- ------------- -------- --------- ----------- CLASS A OFFICE BUILDING One Discovery Square (50% ownership) Q1 2002 Q1 2002 Reston, VA 1 181,019 ITT Educational Services Q1 2002 Q1 2002 Springfield, VA 1 32,000 5 Times Square Q1 2002 Q1 2002 New York, NY 1 1,099,754 111 Huntington Avenue - Prudential Center Q3 2001 Q2 2002 Boston, MA 1 859,484 111 Huntington Avenue - retail Q3 2001 Q1 2003 Boston, MA - 93,852 611 Gateway Boulevard Q3 2003 Q4 2005 S. San Francisco, CA 1 249,732 ------- -------------- TOTAL DEVELOPMENTS PLACED IN SERVICE 5 2,515,841 ======= ============== DRAWN AT INVESTMENT TOTAL CONSTRUCTION SEPTEMBER 30, FUTURE EQUITY PERCENTAGE TO DATE INVESTMENT LOAN 2002 REQUIREMENT LEASED ---------- ---------- ---- ------------- ------------- ------ CLASS A OFFICE BUILDING One Discovery Square (50% ownership) $ 18,000,000 $ 18,541,000 $ 16,875,000 $ 16,002,798 $ - 100% ITT Educational Services 5,561,455 5,740,000 - - 178,545 100% 5 Times Square 493,017,029 536,115,000 420,000,000 366,492,750 - 100% 111 Huntington Avenue - Prudential Center 305,014,774 290,000,000 203,000,000 199,932,942 - 98% 111 Huntington Avenue - retail - n/a - - 100% 611 Gateway Boulevard 60,873,945 81,221,000 - - 20,347,055 0% ------------ ------------- ------------ ------------- ------------ ------- TOTAL DEVELOPMENTS PLACED IN SERVICE $882,467,203 $931,617,000 $639,875,000 $582,428,490 $20,525,600 89% ============ ============= ============ ============= ============ ======= BOSTON PROPERTIES, INC. THIRD QUARTER 2002 VALUE CREATION PIPELINE - OWNED LAND PARCELS - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS - -------------------------------------------------------------------------------- AS OF SEPTEMBER 30, 2002
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 Marlborough, MA 1 50.0 400,000 Weston, MA 1 74.0 350,000 Waltham, MA 1 4.3 202,000 Andover, MA 1 10.0 110,000 Washington, D.C. 1 0.5 170,000 ----------- ------------ --------------- 25 365.6 6,483,000 =========== ============ =============== (1) $20.00/FAR plus an earnout calculation. (2) Subject to ground lease. (3) Prior to January 23, 2003 the cost will be $27.72/ SF of land area. Land area is approximately 108,000 SF. 49
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET - -------- ----------- ------------ --------------- Princeton, NJ (1) 14 149.9 1,900,000 Framingham, MA (2) 1 21.5 300,000 Cambridge, MA (3) 1 2.6 165,000 ----------- ------------ --------------- 16 174.0 2,365,000 =========== ============ =============== BOSTON PROPERTIES, INC. THIRD QUARTER 2002 ACQUISITION PROPERTY PROFILE PROPERTY NAME: 399 Park Avenue PRODUCT TYPE: Class A office tower LOCATION: New York, NY DESCRIPTION: Class A Office Space SIZE: 1,677,679 square feet PURCHASE PRICE: $1,064,000,000 CLOSING DATE: September 25, 2002 FUTURE INVESTMENT: $ 4,000,000 OCCUPANCY LEVEL: 100% FUNDING SOURCE: Unsecured Bridge Loan, Cash LARGEST TENANTS: COMPANY: SIZE: LEASE EXPIRATION: Citibank, NA 695,981 September 30, 2017 Lehman Brothers 436,723 September 30, 2016 Arnold & Porter 135,536 October 31, 2006 Bingham McCutchen 126,338 August 31, 2017 50
NEWS [FRB WEBER SHANDWICK FINANCIAL COMMUNICATIONS LOGO] 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 Suzie Pileggi - Media (212) 445-8170 (617) 236-3300 BOSTON PROPERTIES, INC. ANNOUNCES THIRD QUARTER 2002 RESULTS REPORTS DILUTED FFO PER SHARE OF $1.00 BOSTON, MA, OCTOBER 22, 2002 - BOSTON PROPERTIES, INC. (NYSE: BXP), a real estate investment trust, today reported results for the third quarter ended September 30, 2002. Funds from Operations (FFO) for the quarter ended September 30, 2002 were $99.0 million, or $1.04 per share basic and $1.00 per share diluted before an accounting charge related to the application of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities" and after an adjustment for early surrender lease payments received. FFO for the third quarter of 2002 compares to FFO of $86.6 million, or $0.96 per share basic and $0.91 per share diluted for the quarter ended September 30, 2001. This represents a 9.9% quarter to quarter increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 94,903,894 and 105,724,729, respectively, for the quarter ended September 30, 2002 and 90,518,618 and 105,812,336, respectively, for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended September 30, 2002 was $0.74 on a diluted basis reflecting a 32.1% increase in diluted EPS from the third quarter 2001 of $0.56. The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2002. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. - more- As of September 30, 2002, the Company's portfolio consisted of 145 properties comprising more than 42.8 million square feet, including eight properties under development totaling 3.1 million square feet. The overall occupancy rate for the properties in service as of September 30, 2002 was 95.1%. Significant events of the third quarter include: o The acquisition of 399 Park Avenue, a 1.68 million square foot building in New York City for approximately $1.06 billion. The acquisition was financed with an unsecured bridge loan totaling $1.00 billion with interest rate terms and covenants similar to the Company's unsecured line of credit and maturing in September 2003. The building is fully leased, including approximately 40% that is leased to Citigroup as its corporate headquarters. Third quarter operating results reflect six days of property operations. o The conversion of the Company's Series A Preferred Stock and certain of the Series Two and Three Preferred Units of the Company's Operating Partnership, with an aggregate liquidation preference of approximately $140.6 million, into approximately 3.7 million shares of Common Stock. o The Company completed the disposition of 7600 Boston Boulevard, 7700 Boston Boulevard and 7702 Boston Boulevard, office buildings in Springfield, Virginia, recognizing a net gain of approximately $13.5 million. o The Company completed the disposition of land parcels in Herndon, Virginia and South San Francisco recognizing a net gain of approximately $4.4 million o The Company exercised a one-year extension on the 111 Huntington Avenue $203.0 million construction loan. The Company has an additional one-year option. o The Company recognized lease termination income totaling approximately $1.8 million. o The Company completed its previously announced lease restructuring of the Company's three hotel properties by forming a taxable REIT subsidiary to operate the properties. Marriott will continue to manage the properties under the terms of the existing management agreements. In connection with the restructuring the revenue and expenses of the hotel properties are being reflected in the Company's Consolidated Statements of Operations. o The Company acquired a 1/2-acre site located in the Capital Hill submarket of Washington, DC for approximately $2.4 million. The site is expected to support development of 170,000 square feet of office space. -more- Transactions completed subsequent to September 30, 2002: o The Company refinanced its first mortgage totaling approximately $146.9 million secured by 875 Third Avenue in New York City. o The Company repaid a $0.4 million mortgage secured by 201 Carnegie Center in Princeton, New Jersey. o The Company exercised a one-year extension option on its 2600 Tower Oaks $30 million construction loan facility. The Company has an additional one-year option. BOSTON PROPERTIES WILL HOST A CONFERENCE CALL TOMORROW, OCTOBER 23, 2002 AT 10:00 AM (EASTERN TIME), OPEN TO THE GENERAL PUBLIC, TO DISCUSS THE RESULTS OF THIS YEAR'S THIRD QUARTER. The number to call for this interactive teleconference is (800) 374-1372. A replay of the conference call will be available through October 31, 2002 by dialing (800) 642-1687 and entering the passcode 5893201. Additionally, a copy of Boston Properties' third quarter 2002 "Supplemental Operating and Financial Data" is 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 617-236-3322 or by written request to: Investor Relations Boston Properties, Inc. 111 Huntington Avenue, Suite 300 Boston, MA 02199-7610 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 NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, --------------------------- ------------------------- 2002 2001 2002 2001 ------------ ------------ ----------- ----------- (UNAUDITED AND IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) Revenue Rental: Base rent $241,495 $231,295 $714,187 $623,157 Recoveries from tenants 29,256 27,277 87,367 80,226 Parking and other 13,056 12,965 38,910 40,244 ------------ ------------ ----------- ----------- Total rental revenue 283,807 271,537 840,464 743,627 Hotel revenue 20,007 - 20,007 - Development and management services 3,017 2,805 9,440 9,312 Interest and other 1,222 1,616 4,804 10,349 ------------ ------------ ----------- ----------- Total revenue 308,053 275,958 874,715 763,288 ------------ ------------ ----------- ----------- Expenses Operating Rental 93,741 81,259 265,942 227,968 Hotel 13,524 - 13,524 - General and administrative 9,956 9,819 34,589 29,649 Interest 68,425 59,936 199,539 163,659 Depreciation and amortization 45,534 38,314 132,274 109,329 Loss on investments in securities - - 4,297 6,500 ------------ ------------ ----------- ----------- Total expenses 231,180 189,328 650,165 537,105 ------------ ------------ ----------- ----------- Income before net derivative losses, minority interests, income from unconsolidated joint ventures, minority interest in Operating Partnership, gain on sales of real estate and land held for development, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 76,873 86,630 224,550 226,183 Net derivative losses (5,284) (16,620) (10,413) (24,408) Minority interests in property partnerships 720 374 1,902 629 Income from unconsolidated joint ventures 2,530 997 5,871 2,841 ------------ ------------ ----------- ----------- Income before minority interest in Operating Partnership, gain on sales of real estate and land held for development, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 74,839 71,381 221,910 205,245 Minority interest in Operating Partnership (18,726) (18,851) (56,701) (55,727) ------------ ------------ ----------- ----------- Income before gain on sale of real estate and land held for development, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 56,113 52,530 165,209 149,518 Gain on sale of real estate, net of minority interest - - - 6,505 Gain on sales of land held for development, net of minority interest 3,644 - 3,644 - ------------ ------------ ----------- ----------- Income before discontinued operations, cumulative effect of a change in accounting principle and preferred dividend 59,757 52,530 168,853 156,023 Discontinued Operations: Income from discontinued operations, net of minority interest - 638 570 1,848 Gain on sales of real estate from discontinued operations, net of minority interest 11,910 - 17,750 - ------------ ------------ ----------- ----------- Income before cumulative effect of a change in accounting principle and preferred dividend 71,667 53,168 187,173 157,871 Cumulative effect of a change in accounting principle, net of minority interest - - - (6,767) ------------ ------------ ----------- ----------- Net income before preferred dividend 71,667 53,168 187,173 151,104 Preferred dividend (126) (1,653) (3,412) (4,944) ------------ ------------ ----------- ----------- Net income available to common shareholders $71,541 $51,515 $183,761 $146,160 ============ ============ =========== =========== Basic earnings per share: Income before discontinued operations and cumulative effect of a change in accounting principle $0.63 $0.56 $1.79 $1.68 Discontinued operations - 0.01 0.01 0.02 Gain on sales from discontinued operations 0.12 - 0.19 - Cumulative effect of a change in accounting principle - - - (0.07) ------------ ------------ ----------- ----------- Net income available to common shareholders $0.75 $0.57 $1.99 $1.63 ============ ============ =========== =========== Weighted average number of common shares outstanding 94,904 90,519 92,413 89,753 ============ ============ =========== =========== Diluted earnings per share: Income before discontinued operations and cumulative effect of a change in accounting principle $0.62 $0.55 $1.76 $1.64 Discontinued operations - 0.01 0.01 0.02 Gain on sale from discontinued operations 0.12 - 0.19 - Cumulative effect of a change in accounting principle - - - (0.07) ------------ ------------ ----------- ----------- Net income available to common shareholders $0.74 $0.56 $1.96 $1.59 ============ ============ =========== =========== Weighted average number of common and common equivalent shares outstanding 96,181 92,828 94,026 92,004 ============ ============ =========== =========== BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31, 2002 2001 -------------- ------------- (IN THOUSANDS, EXCEPT FOR SHARE AMOUNTS) (UNAUDITED) ASSETS Real estate $8,139,450 $6,167,399 Development in progress 416,839 1,107,835 Land held for future development 209,911 182,672 Less: accumulated depreciation (836,418) (719,854) -------------- ------------- Total real estate 7,929,782 6,738,052 Cash and cash equivalents 28,793 98,067 Escrows 28,200 23,000 Investments in securities - 4,297 Tenant and other receivables, net 48,716 43,546 Accrued rental income, net 156,818 119,494 Deferred charges, net 148,435 107,573 Prepaid expenses and other assets 38,752 20,996 Investments in unconsolidated joint ventures 101,819 98,485 -------------- ------------- Total assets $8,481,315 $7,253,510 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable $4,422,692 $4,314,942 Unsecured bridge loan 1,000,000 - Unsecured line of credit 44,000 - Accounts payable and accrued expenses 69,097 81,108 Dividends and distributions payable 81,329 79,561 Interest rate contracts 15,115 11,147 Accrued interest payable 18,265 9,080 Other liabilities 70,292 58,859 -------------- ------------- Total liabilities 5,720,790 4,554,697 -------------- ------------- Commitments and contingencies - - -------------- ------------- Minority interests 804,229 844,740 -------------- ------------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 0 and 2,000,000 shares issued and outstanding in 2002 and 2001, respectively - 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, 95,273,202 and 90,780,591 issued and outstanding in 2002 and 2001, respectively 953 908 Additional paid-in capital 1,977,560 1,789,521 Dividends in excess of earnings (2,532) (17,669) Treasury common stock, at cost (2,722) (2,722) Unearned compensation (3,355) (2,097) Accumulated other comprehensive loss (13,608) (13,868) -------------- ------------- Total stockholders' equity 1,956,296 1,754,073 -------------- ------------- Total liabilities and stockholders' equity $8,481,315 $7,253,510 ============== ============= BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (1) Represents cash received under contractual obligations.
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, ----------------------- ---------------------- 2002 2001 2002 2001 ---------- ---------- --------- --------- (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) (UNAUDITED) Income before net derivative losses (SFAS No. 133), minority interests, income from unconsolidated joint ventures, minority interests in Operating Partnership, gain on sales of real estate and land held for development, discontinued operations, cumulative effect of a change in accounting principle and preferred dividend $76,873 $86,630 $224,550 $226,183 Add: Real estate depreciation and amortization 46,971 39,360 136,502 112,516 Income from discontinued operations - 781 697 2,277 Income from unconsolidated joint ventures 2,530 997 5,871 2,841 Less: Net derivative losses (SFAS No. 133) (5,284) (16,620) (10,413) (24,408) Minority property partnerships' share of funds from operations (521) (832) (1,833) (1,546) Preferred dividends and distributions (6,162) (8,383) (22,785) (24,864) ---------- ---------- --------- --------- Funds from operations 114,407 101,933 332,589 292,999 Add (subtract): Net derivative losses (SFAS No. 133) 5,284 16,620 10,413 24,408 Early surrender lease adjustment (1) 667 (12,445) 8,520 (12,445) ---------- ---------- --------- --------- Funds from operations before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $120,358 $106,108 $351,522 $304,962 ========== ========== ========= ========= Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease adjustment 98,980 $86,627 $287,784 $247,210 ========== ========== ========= ========= Weighted average shares outstanding - basic 94,904 90,519 92,413 89,753 ========== ========== ========= ========= FFO per share basic before net derivative losses (SFAS No. 133) and after early surrender adjustment $1.04 $0.96 $3.11 $2.76 ========== ========== ========= ========= FFO per share basic after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $0.99 $0.91 $2.95 $2.65 ========== ========== ========= ========= Weighted average shares outstanding - diluted 105,725 105,812 105,870 104,991 ========== ========== ========= ========= FFO per share diluted before net derivative losses (SFAS No. 133) and after early surrender lease adjustment $1.00 $0.91 $2.96 $2.62 ========== ========== ========= ========= FFO per share diluted after net derivative losses (SFAS No. 133) and before early surrender lease adjustment $0.95 $0.87 $2.81 $2.53 ========== ========== ========= ========= BOSTON PROPERTIES, INC. PORTFOLIO OCCUPANCY
OCCUPANCY BY LOCATION -------------------------------------------------------- SEPTEMBER 30, 2002 DECEMBER 31, 2001 ------------------ ----------------- Greater Boston 94.0% 92.3% Greater Washington, D.C. 98.1% 97.8% Midtown Manhattan 98.2% 99.8% Baltimore, MD 97.2% 99.2% Richmond, VA 92.0% 98.4% Princeton/East Brunswick, NJ 93.0% 88.6% Greater San Francisco 88.6% 93.5% Bucks County, PA 100.0% 100.0% ------------------ ----------------- Total Portfolio 95.1% 95.3% ================== ================= OCCUPANCY BY TYPE -------------------------------------------------------- SEPTEMBER 30, 2002 DECEMBER 31, 2001 ------------------ ----------------- Class A Office Portfolio 95.0% 95.4% Office/Technical Portfolio 95.0% 97.9% Industrial Portfolio 100.0% 87.3% ------------------ ----------------- Total Portfolio 95.1% 95.3% ================== =================