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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):

July 22, 2003

 

Boston Properties, Inc.

(Exact name of Registrant as specified in its charter)

 

Delaware

 

1-13087

 

04-2473675

(State or other jurisdiction
of incorporation)

 

(Commission File
Number)

 

(I.R.S. employer
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 7.

 

Financial Statements, Pro Forma Financial Information and Exhibits.

 

(c)

 

Exhibits.  The following exhibits are being furnished herewith:

 

 

 

Exhibit No.

 

 

 

 

 

99.1

 

Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2003.

 

 

 

99.2

 

Press release dated July 22, 2003.

 

 

 

ITEM 9.

 

Regulation FD Disclosure (Information provided under Item 12-Results of Operations and Financial Condition).

 

 

 

 

 

The following information is furnished under Item 12 - “Results of Operations and Financial Condition” in accordance with interim guidance issued by the SEC in release No. 33-8216.  Such information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section.  The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

 

 

 

 

 

On July 22, 2003, Boston Properties, Inc. (the “Company) issued a press release announcing its financial results for the second quarter of 2003.  That press release referred to certain supplemental information that is available on the Company’s website.  The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2 and are incorporated by reference herein.

 

2

 

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:

July 22, 2003

 

BOSTON PROPERTIES, INC

 

 

 

/s/  Douglas T. Linde

 

 

 

 

 

By:  Douglas T. Linde

 

Chief Financial Officer

 

3

Exhibit 99.1

 

 

Supplemental Operating and Financial Data
for the Quarter Ended June 30, 2003

 

 

Boston Properties, Inc.

Second Quarter 2003

 

INDEX

 

Company Background

Investor Information

Financial Highlights

Consolidated Balance Sheets

Consolidated Income Statements

Funds From Operations

Funds Available for Distribution and Ratios

Capital Structure

Debt Analysis

Unconsolidated Joint Ventures

Portfolio Overview-Square Feet

Property Listing

Top 20 Tenants

Portfolio Overview-FFO

Occupancy Analysis

Office Properties-Lease Expiration Roll Out

Office/Technical Properties-Lease Expiration Roll Out

Industrial Properties-Lease Expiration Roll Out

Retail Properties - Lease Expiration Roll Out

Grand Total - Office, Office/Technical, Industrial  and Retail Properties

Boston Area Lease Expiration Roll Out

Washington DC Area Lease Expiration Roll Out

San Francisco Area Lease Expiration Roll Out

New York Area Lease Expiration Roll Out

Princeton Area Lease Expiration Roll Out

Other Area Lease Expiration Roll Out

CBD/Suburban Lease Expiration Roll Out

Hotel Performance

Same Property Performance

Reconciliation to Same Property Performance

In-Service Property Performance

Capital Expenditures

Value Creation Pipeline - Acquisitions/Dispositions

Value Creation Pipeline - Development

Value Creation Pipeline - Land Parcels

Definitions

 

 

This supplemental package 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 and tax law changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission.

 

2

 

COMPANY BACKGROUND

 

Boston Properties, Inc. (the “Company”), a self-administered and self-managed real estate investment trust (REIT), 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 by Mortimer B. Zuckerman and Edward H. Linde 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.  Boston Properties is well known for its in-house building management expertise and responsiveness to tenants’ needs. 

 

The Boston Properties Management Team is among the most distinguished in the REIT industry.  This deep and talented team of thirty individuals average twenty-four years of real estate experience and sixteen years with Boston Properties.  Chairman Mortimer Zuckerman is nationally known, with economic interests and/or board positions in several other public companies, which include serving as Chairman and Editor-in-Chief of U.S. News and World Report and Chairman and Publisher of the New York Daily News.  He holds an undergraduate degree from McGill University, a law degree from Harvard University and an MBA from the Wharton School, University of Pennsylvania.  President and CEO Edward Linde serves on a number of corporate and philanthropic boards, including John Hancock Financial Services, Inc. the Boston Symphony Orchestra, National Association of Real Estate Investment Trusts (NAREIT) and The Real Estate Roundtable.   He holds a B.S. Civil Engineering degree from MIT and an MBA with high distinction as a Baker Scholar from Harvard Graduate School of Business Administration. 

 

High barriers to entry and strong real estate fundamentals characterize Boston Properties’ targeted markets.  Since becoming a public company in June 1997, Boston Properties has acquired assets totaling approximately $5.8 billion representing approximately 20.1 million square feet.  Its acquisition strategy focuces on Class-A properties that will add near-term and long-term value from their disciplined expertise in property management, leasing, development and capital markets.

 

The Company holds a superior track record in developing premiere CBD office buildings, suburban office centers and build-to-suit projects. The Company’s current development pipeline consists of three projects representing 2.0 million square feet in Midtown Manhattan, Herndon, Virginia and Washington, D.C.  In addition, the Company owns or controls land where it can develop an additional 8.8 million square feet.

 

3

 

INVESTOR INFORMATION

 

Corporate Headquarters

 

Stock Exchange Listing

 

Information Requests

111 Huntington Avenue

 

New York Stock Exchange

 

To request a standard Investor package or to be added to

Boston, MA 02199-7610

 

 

 

our quarterly distribtion list:

(617) 236-3300

 

Trading Symbol

 

 

(617) 236-3311 (fax)

 

BXP

 

617-236-3322

www.bostonproperties.com

 

 

 

Investor_relations@bostonproperties.com

 

 

Key Management:

 

 

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 2003 will be announced according to the following anticipated schedule:

 

Third Quarter

 

Late October

 

Fourth Quarter

 

Late January

 

 

4

 

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):

 

 

 

2nd Quarter 2003

 

1st Quarter 2003

 

4th Quarter 2002

 

3rd Quarter 2002

 

 

 

 

 

 

 

 

 

 

 

High Price

 

$

44.51

 

$

39.29

 

$

37.43

 

$

39.87

 

Low Price

 

$

38.65

 

$

34.99

 

$

33.93

 

$

34.56

 

Average Price

 

$

41.36

 

$

36.58

 

$

36.50

 

$

37.64

 

Closing Price, at the end of the quarter

 

$

43.80

 

$

37.90

 

$

36.86

 

$

37.20

 

Dividends per share - annualized (1)

 

$

2.52

 

$

2.44

 

$

2.44

 

$

2.44

 

Closing dividend yield - annualized

 

5.75

%

6.44

%

6.62

%

6.56

%

Closing shares, common units and preferred units (if converted) outstanding (thousands)

 

126,605

 

125,597

 

125,038

 

125,031

 

Closing market value of shares and units outstanding (thousands)

 

$

5,545,299

 

$

4,760,126

 

$

4,608,901

 

$

4,651,153

 

 

(1)                               Reflects dividend increase from $0.61 per share to $0.63 per share effective Q2 2003.

 

BPLP UNSECURED SENIOR NOTES

 

Settlement Date

 

5/22/03

 

3/18/03

 

1/17/03

 

12/13/02

 

Principal Amount

 

$

250,000,000

 

$

300,000,000

 

$

175,000,000

 

$

750,000,000

 

Yield (on issue date)

 

5.075

%

5.636

%

6.280

%

6.296

%

Coupon

 

5.000

%

5.625

%

6.250

%

6.250

%

Discount

 

99.329

%

99.898

%

99.763

%

99.650

%

Ratings:

 

 

 

 

 

 

 

 

 

Moody’s

 

Baa2 (stable)

 

Baa2 (stable)

 

Baa2 (stable)

 

Baa2 (stable)

 

S&P

 

BBB (stable)

 

BBB (stable)

 

BBB (stable)

 

BBB (stable)

 

Fitch

 

BBB (stable)

 

BBB (stable)

 

BBB (stable)

 

BBB (stable)

 

Maturity Date

 

6/1/15

 

4/15/15

 

1/15/13

 

1/15/13

 

 

5

 

FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except per share amounts)

 

This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with GAAP.  Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial measures are shown on pages 9 and 10.  A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to investors about the company’s financial condition or results of operations can be found on page 53.

 

 

 

Three Months Ended

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

Income Items:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

323,370

 (1)

$

319,680

 (1)

$

333,597

 (1)

$

301,193

(1)

Straight line rent (FASB 13)

 

$

10,687

 

$

10,866

 

$

11,938

 

$

12,244

 

Fair value lease revenue (SFAS 141) (2)

 

$

(167

)

$

—

 

$

—

 

$

—

 

Lease termination fees (included in revenues)

 

$

1,419

 

$

1,761

 

$

3,724

 

$

1,858

 

Capitalized interest

 

$

4,601

 

$

4,453

 

$

4,719

 

$

4,684

 

Capitalized wages

 

$

1,325

 

$

1,172

 

$

1,057

 

$

1,562

 

Operating Margins [(rental revenue - rental expenses)/rental revenue] (3)

 

70.1

%

68.3

%

69.0

%

67.0

%

Net income available to common shareholders

 

$

63,236

 

$

185,045

 

$

260,146

 

$

71,541

 

 

 

 

 

 

 

 

 

 

 

Funds from operations (FFO) available to common shareholders before net derivative losses and after cash basis early surrender lease income (4) 

 

$

103,360

 

$

102,735

 

$

113,464

 

$

98,980

 

FFO per share before net derivative losses and after cash basis early surrender lease income - diluted (4)

 

$

1.03

 

$

1.03

 

$

1.14

 

$

1.00

 

Net income available to common shareholders per share - basic

 

$

0.66

 

$

1.93

 

$

2.73

 

$

0.75

 

Net income available to common shareholders per share -diluted

 

$

0.64

 

$

1.91

 

$

2.70

 

$

0.74

 

Dividends per share

 

$

0.63

 

$

0.61

 

$

0.61

 

$

0.61

 

Funds available for distribution (FAD) (5)

 

$

103,611

 

$

107,962

 

$

112,377

 

$

95,901

 

 

 

 

 

 

 

 

 

 

 

Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)

 

2.64

 

2.65

 

2.87

 

2.70

 

Interest Coverage Ratio (including capitalized interest) - cash basis (6)

 

2.48

 

2.50

 

2.69

 

2.52

 

FFO Payout Ratio (7)

 

61.17

%

59.22

%

53.51

%

61.00

%

FAD Payout Ratio (8)

 

71.39

%

65.77

%

62.88

%

73.44

%

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

Capitalization:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

$

4,819,282

 

$

4,980,113

 

$

5,147,220

 

$

5,466,692

 

Price @ Quarter End

 

$

43.8000

 

$

37.9000

 

$

36.8600

 

$

37.2000

 

Equity Value @ Quarter End

 

$

5,545,299

 

$

4,760,126

 

$

4,608,901

 

$

4,651,153

 

Total Market Capitalization (9)

 

$

10,364,581

 

$

9,740,239

 

$

9,756,121

 

$

10,117,845

 

Debt/Total Market Capitalization (9)

 

46.50

%

51.13

%

52.76

%

54.03

%

 

(1)           Includes gross revenues from hotels of $17,213, $13,246, $24,779 and $20,007 for the three months ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)           Represents the net adjustment for above and below market leases which are being amortized over the terms of the respective leases in place at the property acquisition date.

(3)           Exclusive of the gross up of reimbursable electricity amounts totaling $6,459, $5,391, $6,476 and $6,329 for the three months ended June 30, 2003, March 31, 2003 December 31, 2002 and September 30, 2002, respectively.

(4)           For a quantitative reconciliation of the differences between FFO and net income available to common shareholders as the most comparable GAAP financial measure, see page 9.

(5)           For a quantitative reconciliation of the differences between FAD and FFO before net derivative losses and after cash basis early surrender lease income, see page 10.

(6)           For additional detail, see page 10.

(7)           Gross dividends to common shareholders plus distributions to common Operating Partnership unit holders divided by FFO per share before net derivative losses and after cash basis early surrender lease income - diluted.

(8)           Gross dividends to common shareholders plus distributions to common Operating Partnership unit holders divided by FAD.

(9)           For additional detail, see page 53.

 

6

 

CONSOLIDATED BALANCE SHEETS

(in thousands)

 

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

 

 

(unaudited)

 

(unaudited)

 

 

 

(unaudited)

 

ASSETS

 

 

 

 

 

 

 

 

 

Real estate

 

$

7,863,035

 

$

7,745,475

 

$

7,781,684

 

$

8,139,450

 

Development in progress

 

445,003

 

418,798

 

448,576

 

412,981

 

Land held for future development

 

218,045

 

216,537

 

215,866

 

213,769

 

Real estate held for sale

 

—

 

—

 

224,585

 

—

 

Less accumulated depreciation

 

(893,246

)

(846,002

)

(822,933

)

(836,418

)

Total real estate

 

7,632,837

 

7,534,808

 

7,847,778

 

7,929,782

 

Cash and cash equivalents

 

158,587

 

384,418

 

55,275

 

28,793

 

Escrows

 

18,187

 

20,804

 

41,906

 

28,200

 

Tenant and other receivables, net

 

21,185

 

23,193

 

20,458

 

48,716

 

Accrued rental income, net

 

160,586

 

148,034

 

165,321

 

156,818

 

Deferred charges, net

 

168,833

 

165,559

 

176,545

 

148,435

 

Prepaid expenses and other assets

 

22,090

 

30,144

 

18,015

 

38,752

 

Investments in unconsolidated joint ventures

 

93,904

 

101,794

 

101,905

 

101,819

 

Total assets

 

$

8,276,209

 

$

8,408,754

 

$

8,427,203

 

$

8,481,315

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

Mortgage notes payable

 

$

3,349,134

 

$

3,758,406

 

$

4,267,119

 

$

4,422,692

 

Unsecured senior notes, net of discount

 

1,470,148

 

1,221,707

 

747,375

 

—

 

Unsecured bridge loan

 

—

 

—

 

105,683

 

1,000,000

 

Unsecured line of credit

 

—

 

—

 

27,043

 

44,000

 

Accounts payable and accrued expenses

 

49,299

 

63,319

 

73,846

 

69,097

 

Dividends and distributions payable

 

84,030

 

81,128

 

81,226

 

81,329

 

Interest rate contracts

 

12,677

 

13,663

 

14,514

 

15,115

 

Accrued interest payable

 

56,088

 

37,534

 

25,141

 

18,265

 

Other liabilities

 

63,771

 

63,992

 

81,085

 

70,292

 

Total liabilities

 

5,085,147

 

5,239,749

 

5,423,032

 

5,720,790

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

Minority interests

 

857,058

 

860,182

 

844,581

 

804,229

 

 

 

 

 

 

 

 

 

 

 

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, 97,028,911, 95,928,738, 95,362,990, and 95,273,202 outstanding, respectively

 

970

 

959

 

954

 

953

 

Additional paid-in capital

 

2,032,952

 

2,010,764

 

1,982,689

 

1,977,560

 

Earnings in excess of dividends/(dividends in excess of earnings)

 

327,222

 

325,114

 

198,586

 

(2,532

)

Treasury common stock, at cost

 

(2,722

)

(2,722

)

(2,722

)

(2,722

)

Unearned compensation

 

(7,734

)

(8,448

)

(2,899

)

(3,355

)

Accumulated other comprehensive loss

 

(16,684

)

(16,844

)

(17,018

)

(13,608

)

Total stockholders’ equity

 

2,334,004

 

2,308,823

 

2,159,590

 

1,956,296

 

Total liabilities and stockholders’ equity

 

$

8,276,209

 

$

8,408,754

 

$

8,427,203

 

$

8,481,315

 

 

7

 

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)
(unaudited)

 

 

 

Three Months Ended

 

 

 

30-Jun-03

 

31-Mar-03

 

31-Dec-02

 

30-Sep-02

 

Revenue:

 

 

 

 

 

 

 

 

 

Rental

 

 

 

 

 

 

 

 

 

Base Rent

 

$

248,848

 

$

247,353

 

$

253,948

 

$

229,453

 

Recoveries from tenants

 

37,262

 

39,881

 

38,184

 

34,884

 

Parking and other

 

13,955

 

14,195

 

13,217

 

13,056

 

Total rental revenue

 

300,065

 

301,429

 

305,349

 

277,393

 

Hotel revenues

 

17,213

 

13,246

 

24,779

 

20,007

 

Development and management services

 

5,429

 

4,590

 

2,769

 

2,571

 

Interest and other

 

663

 

415

 

700

 

1,222

 

Total revenue

 

323,370

 

319,680

 

333,597

 

301,193

 

 

 

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

 

 

 

 

Operating

 

57,909

 

61,188

 

59,328

 

61,553

 

Taxes

 

37,780

 

37,914

 

38,969

 

33,565

 

Hotel operating

 

12,258

 

11,171

 

17,562

 

13,524

 

General and administrative

 

11,028

 

11,399

 

12,703

 

9,956

 

Interest (1)

 

75,447

 

73,645

 

71,337

 

65,476

 

Depreciation and amortization

 

50,742

 

49,824

 

52,188

 

43,933

 

Net derivative losses

 

991

 

932

 

1,461

 

5,284

 

Loss from early extinguishment of debt

 

—

 

1,474

 

2,386

 

—

 

Total expenses

 

246,155

 

247,547

 

255,934

 

233,291

 

Income before minority interests and income from unconsolidated joint ventures

 

77,215

 

72,133

 

77,663

 

67,902

 

Minority interest in property partnerships

 

245

 

397

 

162

 

720

 

Income from unconsolidated joint ventures

 

1,353

 

2,658

 

2,083

 

2,530

 

Income before minority interest in Operating Partnership

 

78,813

 

75,188

 

79,908

 

71,152

 

Minority interest in Operating Partnership (2)

 

(19,123

)

(18,523

)

(19,498

)

(18,071

)

Income before gain on sales, net of minority interest

 

59,690

 

56,665

 

60,410

 

53,081

 

Gain on sales of real estate and other assets, net of minority interest

 

3,546

 

52,912

 

187,562

 

—

 

Income before gain on sales of land held for development

 

63,236

 

109,577

 

247,972

 

53,081

 

Gain on sales of land held for development, net

 

—

 

—

 

—

 

3,644

 

Income before discontinued operations

 

63,236

 

109,577

 

247,972

 

56,725

 

Income from discontinued operations, net of minority interest

 

—

 

1,940

 

4,529

 

3,032

 

Gain on sales of real estate from discontinued operations, net of minority interest

 

—

 

73,528

 

7,645

 

11,910

 

Income before preferred dividend

 

63,236

 

185,045

 

260,146

 

71,667

 

Preferred dividend

 

—

 

—

 

—

 

(126

)

Net income available to common shareholders

 

$

63,236

 

$

185,045

 

$

260,146

 

$

71,541

 

 

 

 

 

 

 

 

 

 

 

INCOME PER SHARE OF COMMON STOCK (EPS)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders per share - basic

 

$

0.66

 

$

1.93

 

$

2.73

 

$

0.75

 

Net income available to common shareholders per share - diluted

 

$

0.64

 

$

1.91

 

$

2.70

 

$

0.74

 

 

(1)          Interest expense is reported net of capitalized interest of $4,601, $4,453, $4,719 and $4,684 for the three months ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)          Equals minority interest percent of 17.45%, 17.62%, 17.69%, and 17.76% of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

 

Certain prior period amounts have been reclassified to conform to current period presentation.

 

8

 

FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)
(unaudited)

 

 

 

Three months ended

 

 

 

30-Jun-03

 

31-Mar-03

 

31-Dec-02

 

30-Sep-02

 

 

 

 

 

 

 

 

 

 

 

Net income available to common shareholders

 

$

63,236

 

$

185,045

 

$

260,146

 

$

71,541

 

Add:

 

 

 

 

 

 

 

 

 

Preferred dividend

 

—

 

—

 

—

 

126

 

Minority interest in Operating Partnership

 

19,123

 

18,523

 

19,498

 

18,071

 

Less:

 

 

 

 

 

 

 

 

 

Minority interest in property partnerships

 

245

 

397

 

162

 

720

 

Income from unconsolidated joint ventures

 

1,353

 

2,658

 

2,083

 

2,530

 

Gain on sales of real estate and other assets, net of minority interest

 

3,546

 

52,912

 

187,562

 

—

 

Gain on sales of land held for development, net of minority interest

 

—

 

—

 

—

 

3,644

 

Income from discontinued operations, net of minority interest

 

—

 

1,940

 

4,529

 

3,032

 

Gain on sales of real estate from discontinued operations, net of minority interest

 

—

 

73,528

 

7,645

 

11,910

 

Income before minority interests and income from unconsolidated joint ventures

 

77,215

 

72,133

 

77,663

 

67,902

 

Add:

 

 

 

 

 

 

 

 

 

Real estate depreciation and amortization (1)

 

52,338

 

51,791

 

56,072

 

46,971

 

Income from discontinued operations

 

—

 

2,355

 

5,503

 

3,687

 

Income from unconsolidated joint ventures

 

1,353

 

2,658

 

2,083

 

2,530

 

Loss from early extinguishment of debt associated with the sale of properties

 

—

 

1,474

 

2,386

 

—

 

Less:

 

 

 

 

 

 

 

 

 

Minority property partnership’s share of funds from operations

 

842

 

866

 

1,390

 

521

 

Preferred dividends and distributions

 

5,852

 

5,771

 

5,926

 

6,162

 

Funds from operations  (FFO)

 

124,212

 

123,774

 

136,391

 

114,407

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Net derivative losses

 

991

 

932

 

1,461

 

5,284

 

Early surrender lease payments received - contractual basis

 

—

 

—

 

—

 

667

 

FFO before net derivative losses and after early surrender lease payments received

 

$

125,203

 

$

124,706

 

$

137,852

 

$

120,358

 

FFO available to common shareholders before net derivative losses and after early surrender lease payments received (2)

 

$

103,360

 

$

102,735

 

$

113,464

 

$

98,980

 

FFO per share before net derivative losses and after cash basis early surrender lease income - basic

 

$

1.07

 

$

1.07

 

$

1.19

 

$

1.04

 

Weighted average shares outstanding - basic

 

96,531

 

95,733

 

95,313

 

94,904

 

FFO per share before net derivative losses and after early surrender lease payments received - diluted

 

$

1.03

 

$

1.03

 

$

1.14

 

$

1.00

 

FFO per share after net derivative losses and before early surrender lease payments received - diluted

 

$

1.02

 

$

1.02

 

$

1.13

 

$

0.95

 

Weighted average shares outstanding - diluted

 

107,408

 

105,955

 

105,631

 

105,725

 

 

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)
(unaudited)

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

 

Income
(Numerator)

 

Shares
(Denominator)

 

Income
(Numerator)

 

Shares
(Denominator)

 

Income
(Numerator)

 

Shares
(Denominator)

 

Income
(Numerator)

 

Shares
(Denominator)

 

 

Basic FFO before net derivative losses and after early surrender lease income

 

$

125,203

 

116,931

 

$

124,706

 

116,207

 

$

137,852

 

115,800

 

$

120,358

 

115,402

 

Effect of Dilutive Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Units

 

5,852

 

9,195

 

5,771

 

9,199

 

5,926

 

9,236

 

6,036

 

9,344

 

Convertible Preferred Stock

 

—

 

—

 

—

 

—

 

—

 

—

 

126

 

200

 

Stock Options and other

 

—

 

1,682

 

—

 

1,022

 

—

 

1,082

 

—

 

1,276

 

Diluted FFO before net derivative losses and after early surrender lease payments received

 

$

131,055

 

127,808

 

$

130,477

 

126,428

 

$

143,778

 

126,118

 

$

126,520

 

126,222

 

Company’s share of diluted FFO before net derivative losses and after early surrender lease payments received (3)

 

$

110,137

 

107,408

 

$

109,348

 

105,955

 

$

120,422

 

105,631

 

$

105,974

 

105,725

 

FFO per share before net derivative losses and after early surrender lease payments received - basic

 

$

1.07

 

 

 

$

1.07

 

 

 

$

1.19

 

 

 

$

1.04

 

 

 

FFO per share before net derivative losses and after early surrender lease payments received - diluted

 

$

1.03

 

 

 

$

1.03

 

 

 

$

1.14

 

 

 

$

1.00

 

 

 

 

(1)        Real estate depreciation includes the Company’s share of joint venture real estate depreciation of $2,266, $2,514, $2,848 and $2,170 less corporate related depreciation of $670, $674, $733 and $733 for the three months ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)        Based on weighted average shares for the quarter.  Company’s share for the quarter ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 82.55%, 82.38%, 82.31%, and 82.24%, respectively.

(3)        Based on weighted average diluted shares for the quarter.  Company’s share for the quarter ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 84.04%, 83.81%, 83.76% and 83.76%, respectively.

 

9

 

Funds Available for Distribution (FAD)

(in thousands)

 

 

 

Three Months Ended

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

Funds from operations (FFO) before net derivative losses and after cash basis early surrender lease income (see page 9)

 

$

125,203

 

$

124,706

 

$

137,852

 

$

120,358

 

Add: Non real estate depreciation

 

670

 

674

 

733

 

733

 

Fair value lease revenue (SFAS 141)

 

167

 

—

 

—

 

—

 

Less: Straight-line rent

 

(10,687

)

(10,866

)

(11,938

)

(12,244

)

Recurring capital expenditures

 

(4,726

)

(1,960

)

(5,909

)

(4,266

)

Hotel improvements, equipment upgrades and replacements

 

(911

)

(405

)

(188

)

(394

)

2nd generation tenant improvements and leasing commissions

 

(6,105

)

(4,187

)

(8,173

)

(8,286

)

Funds available for distribution (FAD)

 

$

103,611

 

$

107,962

 

$

112,377

 

$

95,901

 

 

Interest Coverage Ratios

(in thousands, except for ratio amounts)

 

 

 

Three Months Ended

 

 

 

June 30, 2003

 

March 31, 2003

 

December 31, 2002

 

September 30, 2002

 

Excluding Capitalized Interest

 

 

 

 

 

 

 

 

 

Income before minority interests and income from unconsolidated joint ventures

 

$

77,215

 

$

72,133

 

$

77,663

 

$

67,902

 

Add:

 

 

 

 

 

 

 

 

 

Discontinued operations

 

—

 

2,355

 

5,503

 

3,687

 

Interest expense

 

75,447

 

73,645

 

71,337

 

65,476

 

Depreciation

 

50,742

 

49,824

 

52,188

 

43,933

 

Net derivative losses

 

991

 

932

 

1,461

 

5,284

 

Prepayment penalty

 

—

 

1,474

 

2,386

 

—

 

Income from unconsolidated joint ventures

 

1,353

 

2,658

 

2,083

 

2,530

 

Discontinued Operations - depreciation

 

—

 

127

 

1,781

 

1,601

 

Discontinued Operations - interest expense

 

—

 

296

 

809

 

2,949

 

Fair value lease revenue (SFAS 141)

 

167

 

—

 

—

 

—

 

Less:

 

 

 

 

 

 

 

 

 

Straight line rent

 

(10,687

)

(10,866

)

(11,938

)

(12,244

)

Subtotal

 

195,228

 

192,578

 

203,273

 

181,118

 

Divided by:

 

 

 

 

 

 

 

 

 

Interest expense (1)

 

74,077

 

72,352

 

69,901

 

64,202

 

Interest expense - discontinued operations

 

—

 

296

 

809

 

2,949

 

Total interest expense

 

74,077

 

72,648

 

70,710

 

67,151

 

 

 

 

 

 

 

 

 

 

 

Interest Coverage Ratio

 

2.64

 

2.65

 

2.87

 

2.70

 

 

 

 

 

 

 

 

 

 

 

Including Capitalized Interest

 

 

 

 

 

 

 

 

 

Income before minority interests and income from unconsolidated joint ventures

 

$

77,215

 

$

72,133

 

$

77,663

 

$

67,902

 

Add:

 

 

 

 

 

 

 

 

 

Discontinued operations

 

—

 

2,355

 

5,503

 

3,687

 

Interest expense

 

75,447

 

73,645

 

71,337

 

65,476

 

Depreciation

 

50,742

 

49,824

 

52,188

 

43,933

 

Net derivative losses

 

991

 

932

 

1,461

 

5,284

 

Prepayment penantly

 

—

 

1,474

 

2,386

 

—

 

Income from unconsolidated joint ventures

 

1,353

 

2,658

 

2,083

 

2,530

 

Discontinued Operations - depreciation

 

—

 

127

 

1,781

 

1,601

 

Discontinued Operations - interest expense

 

—

 

296

 

809

 

2,949

 

Fair value lease revenue (SFAS 141)

 

167

 

—

 

—

 

—

 

Less:

 

 

 

 

 

 

 

 

 

Straight line rent

 

(10,687

)

(10,866

)

(11,938

)

(12,244

)

Subtotal

 

195,228

 

192,578

 

203,273

 

181,118

 

Divided by:

 

 

 

 

 

 

 

 

 

Interest expense (1) (2)

 

78,678

 

76,805

 

74,763

 

68,867

 

Interest expense - discontinued operations

 

—

 

296

 

809

 

2,949

 

Total interest expense

 

78,678

 

77,101

 

75,572

 

71,816

 

 

 

 

 

 

 

 

 

 

 

Interest Coverage Ratio

 

2.48

 

2.50

 

2.69

 

2.52

 

 

(1)          Excludes amortization of financing costs of $1,370, $1,293, $1,436 and $1,274 for the quarters ended June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002,  respectively.

(2)          Includes capitalized interest of $4,601, $4,453, $4,719 and $4,684 for the quarters ended June 30, 2003, March 31, 2003, December 31, 2002 and September 31, 2002, respectively.

 

10

 

CAPITAL STRUCTURE

 

Debt
(in thousands)

 

 

 

Aggregate Principal
June 30, 2003

 

 

 

 

 

 

 

Mortgage Notes Payable

 

$

3,349,134

 

 

 

 

 

Unsecured Senior Notes, net of discount

 

1,470,148

 

 

 

 

 

Unsecured Line of Credit

 

—

 

 

 

 

 

Total Debt

 

$

4,819,282

 

 

Equity
(in thousands)

 

 

 

Shares & Units
Outstanding

 

Common
Stock
Equivalents

 

Equivalent (1)

 

Common Stock

 

97,029

 

97,029

 

$

4,249,870

 

Operating Partnership Units

 

20,383

 

20,383

 

892,775

 

Preferred Operating Partnership Units

 

 

 

 

 

 

 

Series One (2)

 

2,368

 

2,106

 

92,243

 

Series Two

 

5,401

 

7,087

 

310,411

 

Total Equity

 

 

 

126,605

 

$

5,545,299

 

Total Market Capitalization

 

 

 

 

 

$

10,364,581

 

 

(1)          Value based on June 30, 2003 closing price of $43.80

(2)          These preferred units will be converted into common operating partnership units in August 2003 pursuant to a redemption notice given in July 2003.

 

11

 

DEBT ANALYSIS

 

Debt Maturities and Principal Payments

(in thousands)

 

 

 

2003 (1)

 

2004

 

2005

 

2006

 

2007

 

Thereafter

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

$

22,423

 

$

400,672

 

$

296,409

 

$

223,877

 

$

184,204

 

$

3,691,697

 

$

4,819,282

 

Weighted Average Rate

 

7.07

%

4.19

%

6.71

%

7.28

%

6.59

%

6.67

%

6.50

%

 

(1)               Consists of remaining portion of 2003.

 

Unsecured Debt

 

Unsecured Line of Credit - Matures January 17, 2006

(in thousands)

 

Facility

 

Outstanding
@6/30/03

 

Letters of
Credit

 

Remaining
Capacity

 

 

 

 

 

 

 

 

 

$

605,000

 

$

—

 

$

5,909

 

$

599,091

 

 

Unsecured Senior Notes

(in thousands)

 

Face Amount
@6/30/03

 

Amount net of discount
@6/30/03

 

$

1,475,000

 

$

1,470,148

 

 

Unsecured and Secured Debt Analysis

 

 

 

% of Debt

 

Weighted
Average Rate

 

Weighted Average
Maturity

 

 

 

 

 

 

 

 

 

Unsecured Debt

 

30.51

%

5.95

%

10.4 years

 

Secured Debt

 

69.49

%

6.74

%

5.5 years

 

Total Debt

 

100.00

%

6.50

%

7.0 years

 

 

Floating and Fixed Rate Debt Analysis

 

 

 

% of Debt

 

Weighted
Average Rate

 

Weighted Average
Maturity

 

 

 

 

 

 

 

 

 

Floating Rate Debt

 

6.40

%

2.95

%

1.5 years

 

Fixed Rate Debt

 

93.60

%

6.74

%

7.4 years

 

Total Debt

 

100.00

%

6.50

%

7.0 years

 

 

12

 

Senior Unsecured Debt Covenant Compliance Ratios

(in thousands)

 

In the fourth quarter of 2002 the Company’s operating partnership received investment grade ratings on its senior unsecured debt securities and thereafter issued unsecured notes.  The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York, as trustee, as supplemented, which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets.  Compliance with these restrictive covenants requires us to apply specialized terms the meaning of which is described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the indenture. 

 

This section presents such ratios as of June 30, 2003 to show that the Company’s operating partnership was in compliance with the terms of the indenture agreement, as amended, which has been filed with the SEC.  Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations.  Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.

 

 

 

June 30, 2003

 

Total Assets:

 

 

 

Capitalized Property Value

 

$

10,320,853

 

Cash and Cash Equivalents

 

158,587

 

Undeveloped Land, at Cost

 

218,045

 

Development in Process, at Cost (including Joint Venture%)

 

462,506

 

Total Assets

 

$

11,159,991

 

 

 

 

 

Unencumbered Assets

 

$

4,342,725

 

 

 

 

 

Secured Debt (Fixed and Variable) (1)

 

$

3,346,092

 

Joint Venture Debt

 

211,077

 

Contingent Liabilities & Letters of Credit

 

20,336

 

Unsecured Debt (2)

 

1,475,000

 

Total Outstanding Debt

 

$

5,052,505

 

 

 

 

 

Consolidated EBITDA:

 

 

 

Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)

 

$

77,215

 

Add:  Interest Expense (per Consolidated Income Statement)

 

75,447

 

Add:  Depreciation and Amortization (per Consolidated Income Statement)

 

50,742

 

Add:  Net derivative losses (SFAS No. 133) (per Consolidated Income Statement)

 

991

 

Add:  Loss from early extinguishment of debt (per Consolidated Income Statement)

 

—

 

EBITDA

 

204,395

 

Add:  Company share of unconsolidated joint venture EBITDA

 

6,851

 

Less: EBITDA related to sold properties from continuing operations

 

—

 

Consolidated EBITDA

 

$

211,246

 

 

 

 

 

Adjusted Interest Expense:

 

 

 

Interest Expense (per Consolidated Income Statement)

 

$

75,447

 

Add:  Company share of unconsolidated joint venture interest expense

 

3,496

 

Less:  amortization of financing costs

 

(1,370

)

Less: interest expense related to sold properties from continuing operations

 

—

 

Adjusted Interest Expense

 

$

77,573

 

 

Covenant Ratios

 

Test

 

Actual

 

Total Outstanding Debt/Total Assets

 

Less than  60%

 

45.3

%

Secured Debt/Total Assets

 

Less than  50%

 

31.9

%

Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)

 

Greater than 1.50x

 

2.72

 

Unencumbered Assets/ Unsecured Debt

 

Greater than 150%

 

294.4

%

 

 

 

 

 

 

Unencumbered GAAP NOI

 

 

 

$

81,619

 

 

 

 

 

 

 

% of unencumbered NOI to Total NOI

 

 

 

38.6

%

 

 

 

 

 

 

# of unencumbered properties

 

 

 

70

 

 

(1)               Excludes Fair Value Adjustment of $3.0 million.

(2)               Excludes Debt Discount of $4.9 million.

 

13

 

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)

 

Property

 

2003

 

2004

 

2005

 

2006

 

2007

 

Thereafter

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Citigroup Center

 

$

2,933

 

$

6,191

 

$

6,651

 

$

7,145

 

$

7,676

 

$

483,253

 

$

513,849

 

Embarcadero Center One, Two and Federal Reserve

 

2,286

 

4,809

 

5,141

 

5,496

 

5,877

 

278,913

 

302,522

 

Times Square Tower

 

—

 

287,811

 

—

 

—

 

—

 

—

 

287,811

 

Prudential Center

 

2,160

 

4,591

 

4,919

 

5,256

 

5,619

 

259,705

 

282,250

 

280 Park Avenue

 

1,427

 

3,022

 

3,261

 

3,519

 

3,798

 

248,794

 

263,821

 

599 Lexington Avenue

 

—

 

—

 

225,000

 

—

 

—

 

—

 

225,000

 

Embarcadero Center Four

 

1,672

 

3,544

 

3,797

 

4,061

 

4,346

 

129,711

 

147,131

 

Embarcadero Center Three

 

1,120

 

2,351

 

2,506

 

2,671

 

132,726

 

—

 

141,374

 

Riverfront Plaza

 

1,382

 

2,905

 

3,104

 

3,314

 

3,540

 

95,327

 

109,572

 

Democracy Center

 

931

 

1,961

 

2,103

 

2,257

 

2,421

 

93,728

 

103,401

 

Embarcadero Center West Tower

 

737

 

1,546

 

1,649

 

90,415

 

—

 

—

 

94,347

 

601 and 651 Gateway Boulevard

 

422

 

899

 

977

 

1,062

 

1,155

 

83,566

 

88,081

 

100 East Pratt Street

 

927

 

1,964

 

2,100

 

2,246

 

2,401

 

78,105

 

87,743

 

One & Two Reston Overlook

 

416

 

65,908

 

—

 

—

 

—

 

—

 

66,324

 

202, 206 & 214 Carnegie Center

 

310

 

663

 

719

 

780

 

845

 

58,217

 

61,534

 

New Dominion Technology Park, Building One

 

43

 

91

 

654

 

1,282

 

1,378

 

54,042

 

57,490

 

Reservoir Place

 

632

 

1,321

 

1,400

 

1,484

 

1,572

 

50,258

 

56,667

 

Capital Gallery

 

660

 

1,404

 

1,524

 

50,651

 

—

 

—

 

54,239

 

504, 506 & 508 Carnegie Center

 

500

 

1,052

 

1,136

 

1,221

 

1,314

 

40,915

 

46,138

 

 

14

 

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)

 

Property

 

2003

 

2004

 

2005

 

2006

 

2007

 

Thereafter

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10 & 20 Burlington Mall Rd & 91 Hartwell

 

273

 

688

 

741

 

795

 

855

 

35,589

 

38,941

 

10 Cambridge Center

 

239

 

607

 

659

 

715

 

777

 

31,436

 

34,433

 

1301 New York Avenue

 

620

 

1,315

 

1,417

 

1,531

 

1,651

 

23,409

 

29,943

 

Sumner Square

 

245

 

518

 

557

 

599

 

645

 

26,936

 

29,500

 

Eight Cambridge Center

 

241

 

557

 

601

 

649

 

702

 

24,486

 

27,236

 

510 Carnegie Center

 

276

 

588

 

635

 

683

 

735

 

23,519

 

26,436

 

Lockheed Martin Building

 

303

 

641

 

685

 

732

 

782

 

21,799

 

24,942

 

University Place

 

333

 

702

 

752

 

806

 

864

 

20,338

 

23,795

 

Reston Corporate Center

 

290

 

612

 

654

 

698

 

745

 

20,523

 

23,522

 

New Dominion Technology Park, Bldg. 2

 

—

 

—

 

20,459

 

—

 

—

 

—

 

20,459

 

NIMA Building

 

251

 

530

 

566

 

604

 

644

 

17,785

 

20,380

 

Bedford Business Park

 

324

 

690

 

751

 

818

 

890

 

16,859

 

20,332

 

191 Spring Street

 

132

 

443

 

482

 

18,773

 

—

 

—

 

19,830

 

101 Carnegie Center

 

177

 

375

 

406

 

6,622

 

—

 

—

 

7,580

 

Montvale Center

 

82

 

173

 

189

 

6,762

 

—

 

—

 

7,206

 

Hilltop Business Center

 

79

 

200

 

214

 

230

 

246

 

4,336

 

5,305

 

 

 

22,423

 

400,672

 

296,409

 

223,877

 

184,204

 

2,221,549

 

3,349,134

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unsecured Senior Notes

 

—

 

—

 

—

 

—

 

—

 

1,470,148

 

1,470,148

 

Unsecured Line of Credit

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

$

22,423

 

$

400,672

 

$

296,409

 

$

223,877

 

$

184,204

 

$

3,691,697

 

$

4,819,282

 

 

15

 

UNCONSOLIDATED JOINT VENTURES

 

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of June 30, 2003

 

 

 

One
Freedom
Square

 

Market
Square
North

 

Metropolitan
Square

 

140
Kendrick
Street

 

265
Franklin
Street

 

Two
Freedom
Square

 

901
New York
Avenue (2)

 

Combined

 

Total Equity (1)

 

$

32

 

$

11,036

 

$

31,984

 

$

5,442

 

$

22,718

 

$

8,792

 

$

13,900

 

$

93,904

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage/Construction loans payable (1)

 

$

18,840

 

$

48,247

 

$

69,482

 

$

13,990

 

$

18,897

 

$

35,323

 

$

6,298

 

$

211,077

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BXP’s nominal ownership percentage

 

25.00

%

50.00

%

51.00

%

25.00

%

35.00

%

50.00

%

25.00

%

 

 

 

Results of Operations

for the three months ended June 30, 2003

 

 

 

One
Freedom
Square

 

Market
Square
North

 

Metropolitan
Square

 

140
Kendrick
Street

 

265
Franklin
Street

 

Two
Freedom
Square

 

901
New York
Avenue (2)

 

Combined

 

REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenue

 

$

3,274

 

$

4,844

 

$

6,327

 

$

2,338

 

$

2,712

 

$

4,096

 

$

—

 

$

23,591

(3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating

 

910

 

1,712

 

2,074

 

417

 

1,320

 

981

 

—

 

7,414

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SUBTOTAL

 

2,364

 

3,132

 

4,253

 

1,921

 

1,392

 

3,115

 

—

 

16,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

1,467

 

1,871

 

2,830

 

1,057

 

371

 

713

 

—

 

8,309

 

Depreciation and amortization

 

635

 

1,348

 

1,162

 

343

 

693

 

548

 

—

 

4,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

262

 

$

(87

)

$

261

 

$

521

 

$

328

 

$

1,854

 

$

—

 

$

3,139

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BXP’s share of net income

 

$

92

(4)

$

(44

)

$

133

 

$

130

(4)

$

115

 

$

927

 

$

—

 

$

1,353

 

BXP’s share of depreciation & amortization

 

357

 

674

 

592

 

126

 

243

 

274

 

—

 

2,266

 

BXP’s share of Funds from Operations (FFO)

 

$

449

(4)

$

630

 

$

725

 

$

256

(4)

$

358

 

$

1,201

 

$

—

 

$

3,619

 

 

(1)               Represents the Company’s share.

(2)               Property is currently under development.

(3)               The impact of the straight-line rent adjustment increased revenue by $2,406 for the three months ended June 30, 2003.

(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.

 

16

 

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS  (*)

 

Debt Maturities and Principal Payments

(in thousands)

 

 

 

2003

 

2004

 

2005

 

2006

 

2007

 

Thereafter

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amount

 

$

19,840

 

$

37,325

 

$

8,462

 

$

2,343

 

$

2,534

 

$

140,573

 

$

211,077

 

Weighted Average Rate

 

2.87

%

3.05

%

4.13

%

7.89

%

7.90

%

7.94

%

6.44

%

 

Floating and Fixed Rate Debt Analysis

 

 

 

% of Debt

 

Weighted
Average Rate

 

Weighted Average
Maturity

 

 

 

 

 

 

 

 

 

Floating Rate Debt

 

28.67

%

2.74

%

0.9 years

 

Fixed Rate Debt

 

71.33

%

7.93

%

7.6 years

 

Total Debt

 

100.00

%

6.44

%

5.7 years

 

 

Debt Maturities and Principal Payments by Property

(in thousands)

 

Property

 

2003

 

2004

 

2005

 

2006

 

2007

 

Thereafter

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Metropolitan Square (1)

 

$

359

 

$

764

 

$

830

 

$

901

 

$

978

 

$

65,650

 

$

69,482

 

Market Square North (2)

 

405

 

860

 

926

 

1,001

 

1,080

 

43,975

 

48,247

 

Two Freedom Square (2)

 

—

 

35,323

 

—

 

—

 

—

 

—

 

35,323

 

265 Franklin Street (3)

 

18,897

 

—

 

—

 

—

 

—

 

—

 

18,897

 

One Freedom Square (4)

 

105

 

221

 

239

 

258

 

279

 

17,738

 

18,840

 

140 Kendrick Street (4)

 

74

 

157

 

169

 

183

 

197

 

13,210

 

13,990

 

901 New York Avenue (4)

 

—

 

—

 

6,298

 

—

 

—

 

—

 

6,298

 

 

 

$

19,840

 

$

37,325

 

$

8,462

 

$

2,343

 

$

2,534

 

$

140,573

 

$

211,077

 

 

(*)              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 35% interest in this property.  We have notified the lender regarding our intention to extend the maturity date of this loan to October 2004, as provided for by the loan agreement.

(4)               Boston Properties has a 25% interest in this property

 

17

 

PORTFOLIO OVERVIEW - SQUARE FOOTAGE

 

Rentable Square Footage of In-Service Properties by Location and Type of Property

 

Geographic Area

 

Office (1)

 

Office/Technical

 

Industrial

 

Total

 

% of Total

 

Greater Boston

 

7,818,962

(2)

545,206

 

164,313

 

8,528,481

 

27.31

%

Greater Washington

 

6,252,402

(3)

970,865

 

—

 

7,223,267

 

23.13

%

Greater San Francisco

 

4,706,790

 

144,366

 

60,000

 

4,911,156

 

15.73

%

Midtown Manhattan

 

6,547,249

 

—

 

—

 

6,547,249

 

20.96

%

Princeton/East Brunswick, NJ

 

2,315,887

 

—

 

—

 

2,315,887

 

7.42

%

Baltimore, MD

 

641,469

 

—

 

—

 

641,469

 

2.05

%

Richmond, VA

 

901,308

 

—

 

—

 

901,308

 

2.89

%

Bucks County, PA

 

—

 

—

 

161,000

 

161,000

 

0.52

%

 

 

29,184,067

 

1,660,437

 

385,313

 

31,229,817

 

100.00

%

% of Total

 

93.45

%

5.32

%

1.23

%

100.00

%

 

 

 

Hotel Properties

 

Hotel Properties

 

Number of
Rooms

 

Square
Feet

 

Long Wharf Marriott, Boston, MA

 

402

 

420,000

 

Cambridge Center Marriott, Cambridge, MA

 

431

 

330,400

 

Residence Inn by Marriott, Cambridge, MA

 

221

 

187,474

 

Total Hotel Properties

 

1,054

 

937,874

 

 

Structured Parking

 

 

 

Number of
Spaces

 

Square
Feet

 

 

 

 

 

 

 

Total Structured Parking

 

28,962

 

8,725,064

 

 

(1)               Includes approximately 1,200,000 square feet of retail space.

(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,  403,721 square feet at Market Square North which is 50% owned by Boston Properties and 422,930 square feet at Two Freedom Square which is 50% owned by Boston Properties.

 

18

 

In-Service Property Listing

as of June 30, 2003

 

 

 

Sub Market

 

Number of
Buildings

 

Square Feet

 

Leased%

 

Annualized
Revenue
Per
Leased SF

 

Encumbered
with secured
debt
(Y/N)

 

Central
Business
District (CBD) or
Suburban (S)

 

Greater Boston

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

800 Boylston Street - The Prudential Center

 

CBD Boston MA

 

1

 

1,175,218

 

90.8

%

$

38.39

 

Y

 

CBD

 

111 Huntington Avenue - The Prudential Center (1)

 

CBD Boston MA

 

1

 

853,672

 

99.0

%

49.12

 

N

 

CBD

 

101 Huntington Avenue - The Prudential Center

 

CBD Boston MA

 

1

 

516,974

 

84.3

%

38.93

 

Y

 

CBD

 

The Shops at the Prudential Center (2),(3)

 

CBD Boston MA

 

1

 

537,026

 

95.7

%

49.63

 

Y

 

CBD

 

Shaws Supermarket at the Prudential Center (1)

 

CBD Boston MA

 

1

 

57,235

 

100.0

%

44.79

 

N

 

CBD

 

265 Franklin Street (35% ownership)

 

CBD Boston MA

 

1

 

344,235

 

69.4

%

55.90

 

Y

 

CBD

 

One Cambridge Center

 

East Cambridge MA

 

1

 

215,385

 

97.5

%

43.98

 

N

 

CBD

 

Three Cambridge Center

 

East Cambridge MA

 

1

 

107,484

 

100.0

%

31.44

 

N

 

CBD

 

Eight Cambridge Center

 

East Cambridge MA

 

1

 

177,226

 

100.0

%

31.63

 

Y

 

CBD

 

Ten Cambridge Center

 

East Cambridge MA

 

1

 

152,664

 

100.0

%

32.08

 

Y

 

CBD

 

Eleven Cambridge Center

 

East Cambridge MA

 

1

 

79,616

 

100.0

%

43.49

 

N

 

CBD

 

University Place

 

Mid-Cambridge MA

 

1

 

195,282

 

100.0

%

36.68

 

Y

 

CBD

 

Reservoir Place

 

Route 128 Mass Turnpike MA

 

1

 

520,551

 

81.4

%

34.53

 

Y

 

S

 

204 Second Avenue

 

Route 128 Mass Turnpike MA

 

1

 

40,974

 

52.7

%

30.50

 

N

 

S

 

140 Kendrick Street (25% ownership)

 

Route 128 Mass Turnpike MA

 

3

 

380,987

 

100.0

%

28.03

 

Y

 

S

 

170 Tracer Lane

 

Route 128 Mass Turnpike MA

 

1

 

75,073

 

91.3

%

30.00

 

N

 

S

 

Waltham Office Center

 

Route 128 Mass Turnpike MA

 

3

 

130,209

 

85.2

%

30.52

 

N

 

S

 

195 West Street

 

Route 128 Mass Turnpike MA

 

1

 

63,500

 

100.0

%

48.20

 

N

 

S

 

200 West Street

 

Route 128 Mass Turnpike MA

 

1

 

248,048

 

100.0

%

35.59

 

N

 

S

 

Waltham Weston Corporate Center (1)

 

Route 128 Mass Turnpike MA

 

1

 

308,599

 

43.1

%

32.66

 

N

 

S

 

10 & 20 Burlington Mall Road

 

Route 128 Northwest MA

 

2

 

156,416

 

88.7

%

29.13

 

Y

 

S

 

Bedford Business Park

 

Route 128 Northwest MA

 

1

 

90,000

 

100.0

%

20.72

 

Y

 

S

 

32 Hartwell Avenue

 

Route 128 Northwest MA

 

1

 

69,154

 

100.0

%

29.77

 

N

 

S

 

91 Hartwell Avenue

 

Route 128 Northwest MA

 

1

 

121,486

 

91.1

%

35.71

 

Y

 

S

 

92 Hayden Avenue

 

Route 128 Northwest MA

 

1

 

31,100

 

100.0

%

52.49

 

N

 

S

 

100 Hayden Avenue

 

Route 128 Northwest MA

 

1

 

55,924

 

100.0

%

19.95

 

N

 

S

 

33 Hayden Avenue

 

Route 128 Northwest MA

 

1

 

80,872

 

43.3

%

27.91

 

N

 

S

 

Lexington Office Park

 

Route 128 Northwest MA

 

2

 

166,510

 

85.7

%

29.98

 

N

 

S

 

191 Spring Street

 

Route 128 Northwest MA

 

1

 

162,700

 

100.0

%

31.12

 

Y

 

S

 

181 Spring Street

 

Route 128 Northwest MA

 

1

 

53,595

 

41.2

%

36.88

 

N

 

S

 

201 Spring Street

 

Route 128 Northwest MA

 

1

 

102,500

 

100.0

%

32.87

 

N

 

S

 

40 Shattuck Road

 

Route 128 Northwest MA

 

1

 

120,000

 

95.6

%

27.20

 

N

 

S

 

Quorum Office Park

 

Route 128 Northwest MA

 

2

 

259,918

 

100.0

%

19.43

 

N

 

S

 

Newport Office Park

 

Route 128 South MA

 

1

 

168,829

 

44.6

%

25.32

 

N

 

S

 

 

 

 

 

41

 

7,818,962

 

88.8

%

$

37.68

 

 

 

 

 

Office/Technical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourteen Cambridge Center

 

East Cambridge MA

 

1

 

67,362

 

100.0

%

22.00

 

N

 

CBD

 

Bedford Business Park

 

Route 128 Northwest MA

 

2

 

383,704

 

100.0

%

15.71

 

Y

 

S

 

17 Hartwell Avenue

 

Route 128 Northwest MA

 

1

 

30,000

 

100.0

%

11.00

 

N

 

S

 

164 Lexington Road

 

Route 128 Northwest MA

 

1

 

64,140

 

100.0

%

10.57

 

N

 

S

 

 

 

 

 

5

 

545,206

 

100.0

%

$

15.62

 

 

 

 

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40-46 Harvard Street

 

Route 128 Southwest MA

 

1

 

164,313

 

74.9

%

$

7.47

 

N

 

S

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Greater Boston:

 

47

 

8,528,481

 

89.2

%

 

 

 

 

 

 

 

(1)               Not included in same property analysis

(2)               93,935 square feet of space added in Q2 2002 is not included in the same property analysis.

(3)               93,899 square feet of space is unencumbered.

 

19

 

 

 

Sub Market

 

Number of
Buildings

 

Square Feet

 

Leased %

 

Annualized
Revenue
Per
Leased SF

 

Encumbered
with secured
debt
(Y/N)

 

Central
Business
District (CBD) or
Suburban (S)

 

Greater Washington, DC

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Gallery

 

Southwest Washington DC

 

1

 

396,894

 

97.9

%

$

37.50

 

Y

 

CBD

 

500 E Street, N. W.

 

Southwest Washington DC

 

1

 

242,769

 

100.0

%

33.66

 

N

 

CBD

 

Metropolitan Square (51% ownership)

 

East End Washington DC

 

1

 

585,220

 

97.6

%

39.94

 

Y

 

CBD

 

1301 New York Avenue

 

East End Washington DC

 

1

 

188,358

 

100.0

%

30.49

 

Y

 

CBD

 

Market Square North (50% ownership)

 

East End Washington DC

 

1

 

403,721

 

100.0

%

44.67

 

Y

 

CBD

 

Sumner Square

 

CBD Washington DC

 

1

 

207,620

 

100.0

%

35.07

 

Y

 

CBD

 

Decoverly Two

 

Montgomery County MD

 

1

 

77,747

 

100.0

%

24.18

 

N

 

S

 

Decoverly Three

 

Montgomery County MD

 

1

 

77,040

 

100.0

%

26.28

 

N

 

S

 

Democracy Center

 

Montgomery County MD

 

3

 

680,644

 

87.0

%

30.07

 

Y

 

S

 

Montvale Center

 

Montgomery County MD

 

1

 

120,823

 

85.8

%

24.18

 

Y

 

S

 

2600 Tower Oaks Boulevard

 

Montgomery County MD

 

1

 

178,887

 

100.0

%

33.09

 

N

 

S

 

Orbital Sciences 1&3

 

Loudoun County

 

2

 

176,726

 

100.0

%

23.32

 

N

 

S

 

Orbital Sciences 2

 

Loudoun County

 

1

 

160,502

 

100.0

%

23.66

 

N

 

S

 

The Arboretum

 

Fairfax County VA

 

1

 

95,584

 

100.0

%

26.34

 

N

 

S

 

One Freedom Square (25% ownership)

 

Fairfax County VA

 

1

 

410,308

 

100.0

%

32.75

 

Y

 

S

 

Two Freedom Square (50% ownership) (1)

 

Fairfax County VA

 

1

 

422,930

 

99.2

%

33.78

 

Y

 

S

 

One Reston Overlook

 

Fairfax County VA

 

1

 

312,685

 

100.0

%

24.46

 

Y

 

S

 

Two Reston Overlook

 

Fairfax County VA

 

1

 

131,594

 

82.2

%

32.80

 

Y

 

S

 

One Discovery Square

 

Fairfax County VA

 

1

 

181,019

 

100.0

%

36.83

 

N

 

S

 

Two Discovery Square (1)

 

Fairfax County VA

 

1

 

185,970

 

92.8

%

30.50

 

N

 

S

 

New Dominion Technology Park

 

Fairfax County VA

 

1

 

235,201

 

100.0

%

27.05

 

Y

 

S

 

Reston Corporate Center

 

Fairfax County VA

 

2

 

261,046

 

100.0

%

32.56

 

Y

 

S

 

Lockheed Martin Building

 

Fairfax County VA

 

1

 

255,244

 

100.0

%

30.59

 

Y

 

S

 

NIMA Building

 

Fairfax County VA

 

1

 

263,870

 

100.0

%

29.44

 

Y

 

S

 

 

 

 

 

28

 

6,252,402

 

97.3

%

$

32.60

 

 

 

 

 

Office/Technical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Broad Run Business Park (1)

 

Loudoun County

 

1

 

127,226

 

54.7

%

22.18

 

N

 

S

 

Sugarland Business Park, Building One

 

Fairfax County VA

 

1

 

52,797

 

22.8

%

22.67

 

N

 

S

 

Sugarland Business Park, Building Two

 

Fairfax County VA

 

1

 

59,215

 

65.9

%

20.46

 

N

 

S

 

7435 Boston Boulevard

 

Fairfax County VA

 

1

 

103,557

 

82.3

%

15.37

 

N

 

S

 

7451 Boston Boulevard

 

Fairfax County VA

 

1

 

47,001

 

66.1

%

17.35

 

N

 

S

 

7450 Boston Boulevard

 

Fairfax County VA

 

1

 

62,402

 

100.0

%

20.58

 

N

 

S

 

7374 Boston Boulevard

 

Fairfax County VA

 

1

 

57,321

 

100.0

%

13.87

 

N

 

S

 

8000 Grainger Court

 

Fairfax County VA

 

1

 

90,465

 

71.9

%

13.71

 

N

 

S

 

7500 Boston Boulevard

 

Fairfax County VA

 

1

 

79,971

 

100.0

%

14.63

 

N

 

S

 

7501 Boston Boulevard

 

Fairfax County VA

 

1

 

75,756

 

100.0

%

23.45

 

N

 

S

 

7601 Boston Boulevard

 

Fairfax County VA

 

1

 

103,750

 

100.0

%

14.28

 

N

 

S

 

7375 Boston Boulevard

 

Fairfax County VA

 

1

 

26,865

 

100.0

%

17.75

 

N

 

S

 

8000 Corporate Court

 

Fairfax County VA

 

1

 

52,539

 

100.0

%

10.27

 

N

 

S

 

7300 Boston Boulevard

 

Fairfax County VA

 

1

 

32,000

 

100.0

%

20.86

 

N

 

S

 

 

 

 

 

14

 

970,865

 

81.6

%

$

17.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Greater Washington:

 

42

 

7,223,267

 

95.2

%

 

 

 

 

 

 

 

(1)               Not included in same property analysis

 

20

 

 

 

Sub Market

 

Number of
Buildings

 

Square Feet

 

Leased %

 

Annualized
Revenues
Per
Leased SF

 

Encumbered
with Secured
debt
(Y/N)

 

Central
Business
District (CBD) or
Suburban (S)

 

Midtown Manhattan

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

599 Lexington Avenue

 

Park Avenue NY

 

1

 

1,019,341

 

95.3

%

$

62.40

 

Y

 

CBD

 

280 Park Avenue

 

Park Avenue NY

 

1

 

1,170,080

 

97.9

%

57.21

 

Y

 

CBD

 

Citigroup Center

 

Park Avenue NY

 

1

 

1,577,959

 

99.9

%

59.52

 

Y

 

CBD

 

399 Park Avenue (1)

 

Park Avenue NY

 

1

 

1,678,090

 

99.5

%

69.47

 

N

 

CBD

 

5 Times Square

 

Times Square NY

 

1

 

1,101,779

 

100.0

%

49.98

 

N

 

CBD

 

 

 

Total Midtown Manhattan:

 

5

 

6,547,249

 

98.7

%

$

60.48

 

 

 

 

 

Princeton/East Brunswick, NJ

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

101 Carnegie Center

 

Princeton NJ

 

1

 

123,659

 

100.0

%

$

28.19

 

Y

 

S

 

104 Carnegie Center

 

Princeton NJ

 

1

 

102,830

 

85.2

%

32.74

 

N

 

S

 

105 Carnegie Center

 

Princeton NJ

 

1

 

69,648

 

100.0

%

29.39

 

N

 

S

 

201 Carnegie Center

 

Princeton NJ

 

—

 

6,500

 

100.0

%

25.42

 

N

 

S

 

202 Carnegie Center

 

Princeton NJ

 

1

 

128,715

 

97.7

%

30.03

 

Y

 

S

 

210 Carnegie Center

 

Princeton NJ

 

1

 

161,112

 

100.0

%

30.82

 

N

 

S

 

211 Carnegie Center

 

Princeton NJ

 

1

 

47,025

 

100.0

%

25.51

 

N

 

S

 

212 Carnegie Center

 

Princeton NJ

 

1

 

148,233

 

98.5

%

32.47

 

N

 

S

 

214 Carnegie Center

 

Princeton NJ

 

1

 

150,416

 

92.2

%

30.74

 

Y

 

S

 

206 Carnegie Center

 

Princeton NJ

 

1

 

161,763

 

100.0

%

28.98

 

Y

 

S

 

302 Carnegie Center

 

Princeton NJ

 

1

 

65,135

 

95.5

%

31.65

 

N

 

S

 

502 Carnegie Center

 

Princeton NJ

 

1

 

116,374

 

95.3

%

31.90

 

N

 

S

 

510 Carnegie Center

 

Princeton NJ

 

1

 

234,160

 

100.0

%

26.79

 

Y

 

S

 

504 Carnegie Center

 

Princeton NJ

 

1

 

121,990

 

100.0

%

27.67

 

Y

 

S

 

506 Carnegie Center

 

Princeton NJ

 

1

 

136,213

 

88.3

%

29.37

 

Y

 

S

 

508 Carnegie Center

 

Princeton NJ

 

1

 

131,085

 

100.0

%

27.23

 

Y

 

S

 

One Tower Center

 

East Brunswick NJ

 

1

 

411,029

 

84.4

%

34.09

 

N

 

S

 

 

 

Total Princeton/East Brunswick, NJ:

 

16

 

2,315,887

 

94.8

%

$

30.19

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater San Francisco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Embarcadero Center One

 

CBD San Francisco CA

 

1

 

836,339

 

95.7

%

43.18

 

Y

 

CBD

 

Embarcadero Center Two

 

CBD San Francisco CA

 

1

 

778,958

 

87.4

%

47.52

 

Y

 

CBD

 

Embarcadero Center Three

 

CBD San Francisco CA

 

1

 

773,693

 

86.6

%

42.57

 

Y

 

CBD

 

Embarcadero Center Four

 

CBD San Francisco CA

 

1

 

936,302

 

91.4

%

62.61

 

Y

 

CBD

 

Federal Reserve

 

CBD San Francisco CA

 

1

 

149,592

 

99.8

%

49.19

 

Y

 

CBD

 

West Tower

 

CBD San Francisco CA

 

1

 

471,822

 

100.0

%

44.03

 

Y

 

CBD

 

611 Gateway (1)

 

South San Francisco CA

 

1

 

250,825

 

0.0

%

—

 

N

 

S

 

601 and 651 Gateway

 

South San Francisco CA

 

2

 

509,259

 

82.4

%

37.29

 

Y

 

S

 

 

 

 

 

9

 

4,706,790

 

86.0

%

$

47.63

 

 

 

 

 

Office/Technical

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hilltop Office Center

 

South San Francisco CA

 

9

 

144,366

 

77.8

%

$

14.99

 

Y

 

S

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

560 Forbes Blvd

 

South San Francisco CA

 

1

 

40,000

 

100.0

%

10.62

 

N

 

S

 

430 Rozzi Place

 

South San Francisco CA

 

1

 

20,000

 

100.0

%

12.09

 

N

 

S

 

 

 

 

 

2

 

60,000

 

100.0

%

$

11.11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Greater San Francisco:

 

20

 

4,911,156

 

85.9

%

 

 

 

 

 

 

 

(1)               Not included in same property analysis

 

21

 

 

 

Sub Market

 

Number of
Buildings

 

Square Feet

 

Leased%

 

Annualized
Revenue
Per
Leased SF

 

Encumbered
with secured
debt
(Y/N)

 

Central
Business
District(CBD) or
Suburban (S)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore, MD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 East Pratt Street

 

Baltimore MD

 

1

 

641,469

 

98.5

%

$

30.32

 

Y

 

CBD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Richmond, VA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Riverfront Plaza

 

Richmond VA

 

1

 

901,308

 

91.4

%

$

24.71

 

Y

 

CBD

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bucks County, PA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38 Cabot Boulevard

 

Bucks County PA

 

1

 

161,000

 

100.0

%

$

4.79

 

N

 

S

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total In-Service Properties:

 

133

 

31,229,817

 

92.8

%

 

 

 

 

 

 

 

22

 

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

 

TOP 20 TENANTS BY SQUARE FEET LEASED

 

Tenant

 

Sq. Ft.

 

% of
Portfolio

 

 

 

 

 

 

 

 

 

1

 

U.S. Government

 

1,397,980

 

4.48

%

2

 

Citibank, N.A.

 

1,231,068

 

3.94

%

3

 

Ernst and Young

 

1,064,939

 

3.41

%

4

 

Lockheed Martin Corporation

 

601,995

 

1.93

%

5

 

Shearman & Sterling

 

585,808

 

1.88

%

6

 

Gillette Company

 

485,932

 

1.56

%

7

 

Lehman Brothers

 

436,723

 

1.40

%

8

 

Wachovia

 

393,794

 

1.26

%

9

 

Parametric Technology Corp. (1)

 

380,987

 

1.22

%

10

 

Washington Group International

 

365,245

 

1.17

%

11

 

Deutsche Bank

 

346,617

 

1.11

%

12

 

Orbital Sciences Corporation

 

337,228

 

1.08

%

13

 

TRW, Inc.

 

309,689

 

0.99

%

14

 

T. Rowe Price Associates, Inc.

 

304,129

 

0.97

%

15

 

Hunton & Williams

 

301,081

 

0.96

%

16

 

Kirkland & Ellis

 

294,821

 

0.94

%

17

 

Digitas

 

279,182

 

0.89

%

18

 

Accenture (1)

 

265,622

 

0.85

%

19

 

Bingham McCutchen

 

265,224

 

0.85

%

20

 

Tellabs Operations, Inc.

 

259,918

 

0.83

%

 

 

 

 

 

 

 

 

 

 

Total % of Portfolio Square Feet

 

 

 

31.73

%

 

 

Total % of Portfolio Revenue

 

 

 

34.55

%

 

Major Signed Deals for Future Development

 

 

 

Tenant

 

Sq. Ft.

 

 

 

U.S. Government

 

257,400

 

 

 

Finnegan Henderson Farabow Garrett & Dunner, LLP

 

251,337

 

 

 

O’Melveny & Myers

 

220,887

 

 

(1)                                  These tenants occupy space in a property in which Boston Properties has a 25% interest.

 

 

TENANT DIVERSIFICATION (GROSS RENT) *

 

 

*  The Company’s tenants are classified according to the U.S. Government’s North American Industry Classification System (NAICS) which has replaced the Standard Industrial Classification (SIC) system.

 

23

 

PORTFOLIO OVERVIEW

 

Percentage of Rental Revenues Less Operating Expenses and Real Estate Taxes for In-Service Properties
by Location and Type of Property for the Quarter Ended June 30, 2003

 

Geographic Area

 

Office (1)

 

Office/
Technical

 

Industrial

 

Hotel

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

21.9

%

0.8

%

0.1

%

2.3

%

25.1

%

Greater Washington

 

14.9

%

1.1

%

—

 

—

 

16.0

%

Greater San Francisco

 

14.9

%

0.1

%

0.1

%

—

 

15.1

%

Midtown Manhattan

 

34.8

%

0.2

%

—

 

—

 

35.0

%

Princeton/East Brunswick, NJ

 

5.2

%

—

 

0.1

%

—

 

5.3

%

Baltimore, MD

 

1.8

%

—

 

—

 

—

 

1.8

%

Richmond, VA

 

1.7

%

—

 

—

 

—

 

1.7

%

Bucks County, PA

 

—

 

—

 

—

 

—

 

—

 

Total

 

95.2

%

2.2

%

0.3

%

2.3

%

100.0

%

 

Geographic Area

 

CBD

 

Suburban

 

Total

 

 

 

 

 

 

 

 

 

Greater Boston

 

18.0

%

7.1

%

25.1

%

Greater Washington

 

4.7

%

11.4

%

16.1

%

Greater San Francisco

 

13.7

%

1.4

%

15.1

%

Midtown Manhattan

 

34.9

%

—

 

34.9

%

Princeton/East Brunswick, NJ

 

—

 

5.2

%

5.2

%

Baltimore, MD

 

1.8

%

—

 

1.8

%

Richmond, VA

 

1.7

%

—

 

1.7

%

Bucks County, PA

 

—

 

0.1

%

0.1

%

Total

 

74.8

%

25.2

%

100.0

%

 

(1)           Includes Retail Center (Prudential Center and Embarcadero Center).

 

24

 

OCCUPANCY ANALYSIS

 

Same Property Occupancy - By Location

 

 

 

CBD

 

Suburban

 

Total

 

Location

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

90.8

%

92.8

%

89.0

%

93.9

%

89.8

%

93.4

%

Greater Washington

 

98.9

%

99.1

%

94.4

%

96.2

%

95.8

%

97.1

%

Midtown Manhattan

 

98.5

%

98.9

%

—

 

—

 

98.5

%

98.9

%

Baltimore, MD

 

98.5

%

98.2

%

—

 

—

 

98.5

%

98.2

%

Princeton/East Brunswick, NJ

 

—

 

—

 

94.8

%

90.8

%

94.8

%

90.8

%

Richmond, VA

 

91.4

%

93.1

%

—

 

—

 

91.4

%

93.1

%

Greater San Francisco

 

91.9

%

94.5

%

82.9

%

86.2

%

90.6

%

93.3

%

Bucks County, PA

 

—

 

—

 

100.0

%

100.0

%

100.0

%

100.0

%

Total Portfolio

 

94.8

%

96.1

%

92.1

%

93.8

%

93.7

%

95.1

%

 

Same Property - By Type of Property

 

 

 

CBD

 

Suburban

 

Total

 

 

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Office Portfolio

 

94.8

%

96.1

%

92.6

%

93.5

%

93.9

%

95.1

%

Total Office/Technical Portfolio

 

100.0

%

100.0

%

89.6

%

93.9

%

90.0

%

94.1

%

Total Industrial Portfolio

 

—

 

—

 

89.3

%

100.0

%

89.3

%

100.0

%

Total Portfolio

 

94.8

%

96.1

%

92.1

%

93.8

%

93.7

%

95.1

%

 

25

 

IN-SERVICE OFFICE PROPERTIES

 

Lease Expirations

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases p.s.f.

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Annualized
Revenues Under
Expiring Leases with
future step-ups - p.s.f.

 

Percentage of
Total Square Feet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

689,403

 

$

23,846,576

 

$

34.59

 

$

23,991,336

 

$

34.80

 

2.49

%

2004

 

1,867,439

 

72,251,766

 

38.69

 

73,010,346

 

39.10

 

6.74

%

2005

 

2,386,437

 

92,048,847

 

38.57

 

94,285,870

 

39.51

 

8.62

%

2006

 

2,949,113

 

126,836,566

 

43.01

 

130,531,693

 

44.26

 

10.65

%

2007

 

2,279,077

 

87,508,668

 

38.40

 

91,121,341

 

39.98

 

8.23

%

2008

 

1,470,442

 

61,564,123

 

41.87

 

64,620,470

 

43.95

 

5.31

%

2009

 

2,423,879

 

95,683,023

 

39.48

 

104,402,579

 

43.07

 

8.75

%

2010

 

1,359,353

 

63,834,257

 

46.96

 

71,464,301

 

52.57

 

4.91

%

2011

 

2,640,870

 

108,521,309

 

41.09

 

124,300,795

 

47.07

 

9.54

%

2012

 

2,097,043

 

95,330,909

 

45.46

 

103,659,111

 

49.43

 

7.57

%

Thereafter

 

5,346,474

 

257,905,634

 

48.24

 

313,803,231

 

58.69

 

19.31

%

 

 

Occupancy By Location*

 

 

 

CBD

 

Suburban

 

Total

 

Location

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

92.5

%

92.5

%

84.0

%

92.6

%

88.8

%

92.5

%

Greater Washington

 

98.9

%

99.4

%

96.5

%

97.0

%

97.3

%

98.2

%

Midtown Manhattan

 

98.7

%

98.4

%

—

 

—

 

98.7

%

98.4

%

Baltimore, MD

 

98.5

%

97.8

%

—

 

—

 

98.5

%

97.8

%

Princeton/East Brunswick, NJ

 

—

 

—

 

94.8

%

90.8

%

94.8

%

90.8

%

Richmond, VA

 

91.4

%

93.1

%

—

 

—

 

91.4

%

93.1

%

Greater San Francisco

 

91.9

%

94.5

%

55.2

%

85.5

%

86.0

%

93.5

%

Bucks County, PA

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

Total Portfolio

 

95.5

%

96.2

%

89.2

%

93.4

%

93.2

%

95.3

%

 

*  Includes approximately 1,500,000 square feet of retail space.

 

26

 

IN-SERVICE OFFICE/TECHNICAL PROPERTIES

 

Lease Expirations

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases p.s.f.

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Annualized
Revenues Under
Expiring Leases with
future step-ups - p.s.f.

 

Percentage of
Total Square Feet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

111,435

 

$

2,019,529

 

$

18.12

 

$

2,019,529

 

$

18.12

 

6.71

%

2004

 

82,291

 

1,516,632

 

18.43

 

1,527,380

 

18.56

 

4.96

%

2005

 

148,414

 

2,119,974

 

14.28

 

2,207,509

 

14.87

 

8.94

%

2006

 

297,604

 

4,329,235

 

14.55

 

4,382,165

 

14.72

 

17.92

%

2007

 

317,912

 

5,435,164

 

17.10

 

5,915,518

 

18.61

 

19.15

%

2008

 

24,939

 

380,034

 

—

 

419,717

 

—

 

1.50

%

2009

 

—

 

—

 

—

 

—

 

—

 

—

 

2010

 

79,971

 

1,170,372

 

14.63

 

1,170,372

 

14.63

 

4.82

%

2011

 

137,321

 

2,379,601

 

17.33

 

2,582,414

 

18.81

 

8.27

%

2012

 

67,362

 

1,481,908

 

22.00

 

1,633,473

 

24.25

 

4.06

%

Thereafter

 

205,304

 

3,692,408

 

17.99

 

4,303,743

 

20.96

 

12.36

%

 

Occupancy By Location

 

 

 

CBD

 

Suburban

 

Total

 

Location

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

Greater Washington

 

—

 

—

 

81.6

%

92.3

%

81.6

%

92.3

%

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

 

—

 

—

 

77.8

%

82.8

%

77.8

%

82.8

%

Bucks County, PA

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

Total Portfolio

 

100.0

%

100.0

%

86.8

%

93.9

%

87.3

%

94.1

%

 

27

 

IN-SERVICE INDUSTRIAL PROPERTIES

 

Lease Expirations

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases p.s.f.

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Annualized
Revenues Under
Expiring Leases with
future step-ups - p.s.f.

 

Percentage of
Total Square Feet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

128,105

 

$

956,761

 

$

7.47

 

$

956,761

 

$

7.47

 

33.25

%

2004

 

201,000

 

1,195,884

 

5.95

 

1,205,484

 

6.00

 

52.17

%

2005

 

—

 

—

 

—

 

—

 

—

 

—

 

2006

 

—

 

—

 

—

 

—

 

—

 

—

 

2007

 

20,000

 

241,890

 

12.09

 

260,859

 

13.04

 

5.19

%

2008

 

—

 

—

 

—

 

—

 

—

 

—

 

2009

 

—

 

—

 

—

 

—

 

—

 

—

 

2010

 

—

 

—

 

—

 

—

 

—

 

—

 

2011

 

—

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

—

 

 

Occupancy By Location

 

 

 

CBD

 

Suburban

 

Total

 

Location

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

—

 

—

 

74.9

%

100.0

%

74.9

%

100.0%

 

Greater Washington

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

n/a

 

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

 

—

 

—

 

100.0

%

100.0

%

100.0

%

100.0%

 

Bucks County, PA

 

—

 

—

 

100.0

%

100.0

%

100.0

%

100.0%

 

Total Portfolio

 

—

 

—

 

89.3

%

100.0

%

89.3

%

100.0%

 

 

28

 

IN-SERVICE RETAIL PROPERTIES

 

Lease Expirations

 

Year of Lease Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases p.s.f.

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Annualized
Revenues Under
Expiring Leases with
future step-ups - p.s.f.

 

Percentage of
Total Square Feet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

55,423

 

$

4,321,734

 

$

77.98

 

$

4,281,582

 

$

77.25

 

3.70

%

2004

 

79,240

 

5,670,470

 

71.56

 

5,681,772

 

71.70

 

5.29

%

2005

 

94,767

 

4,251,340

 

44.86

 

4,387,122

 

46.29

 

6.32

%

2006

 

49,726

 

2,852,453

 

57.36

 

2,874,568

 

57.81

 

3.32

%

2007

 

42,847

 

2,101,402

 

49.04

 

2,233,466

 

52.13

 

2.86

%

2008

 

65,066

 

3,470,419

 

53.34

 

3,571,916

 

54.90

 

4.34

%

2009

 

45,169

 

2,131,532

 

47.19

 

2,218,270

 

49.11

 

3.01

%

2010

 

83,166

 

3,437,095

 

41.33

 

3,819,606

 

45.93

 

5.55

%

2011

 

41,289

 

2,595,010

 

62.85

 

2,993,839

 

72.51

 

2.76

%

2012

 

101,610

 

4,822,177

 

47.46

 

5,413,669

 

53.28

 

6.77

%

Thereafter

 

618,219

 

30,660,470

 

49.59

 

38,022,256

 

61.50

 

41.26

%

 

29

 

GRAND TOTAL OF ALL

IN-SERVICE PROPERTIES

 

Lease Expiration

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases p.s.f.

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Annualized
Revenues Under
Expiring Leases with
future step-ups - p.s.f.

 

Percentage of
Total Square Feet

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

984,366

 

$

31,144,600

 

$

31.64

 

$

31,249,209

 

$

31.75

 

3.2

%

2004

 

2,229,970

 

80,634,752

 

36.16

 

81,424,982

 

36.51

 

7.1

%

2005

 

2,629,618

 

98,420,161

 

37.43

 

100,880,502

 

38.36

 

8.4

%

2006

 

3,296,443

 

134,018,254

 

40.66

 

137,788,427

 

41.80

 

10.6

%

2007

 

2,659,836

 

95,287,125

 

35.82

 

99,531,184

 

37.42

 

8.5

%

2008

 

1,560,447

 

65,414,576

 

41.92

 

68,612,103

 

43.97

 

5.0

%

2009

 

2,469,048

 

97,814,555

 

39.62

 

106,620,848

 

43.18

 

7.9

%

2010

 

1,522,490

 

68,441,723

 

44.95

 

76,454,279

 

50.22

 

4.9

%

2011

 

2,819,480

 

113,495,920

 

40.25

 

129,877,048

 

46.06

 

9.0

%

2012

 

2,266,015

 

101,634,995

 

44.85

 

110,706,253

 

48.86

 

7.3

%

Thereafter

 

6,169,997

 

292,258,512

 

47.37

 

356,129,230

 

57.72

 

19.8

%

 

Occupancy By Location

 

 

 

CBD

 

Suburban

 

Total

 

Location

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

30-Jun-03

 

30-Jun-02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Boston

 

92.6

%

92.6

%

85.5

%

93.9

%

89.2

%

93.2

%

Greater Washington

 

98.9

%

99.4

%

93.8

%

96.0

%

95.2

%

97.5

%

Midtown Manhattan

 

98.7

%

98.4

%

—

 

—

 

98.7

%

98.4

%

Baltimore, MD

 

98.5

%

97.8

%

—

 

—

 

98.5

%

97.8

%

Princeton/East Brunswick, NJ

 

—

 

—

 

94.8

%

90.8

%

94.8

%

90.8

%

Richmond, VA

 

91.4

%

93.1

%

—

 

—

 

91.4

%

93.1

%

Greater San Francisco

 

91.9

%

94.5

%

61.3

%

89.4

%

85.9

%

93.6

%

Bucks County, PA

 

—

 

—

 

100.0

%

100.0

%

100.0

%

100.0

%

Total Portfolio

 

95.5

%

96.2

%

88.9

%

93.8

%

92.8

%

95.3

%

 

30

 

IN-SERVICE GREATER BOSTON PROPERTIES

 

Lease Expirations - Greater Boston

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

96,476

 

$

3,283,982

 

$

34.04

 

$

3,275,582

 

$

33.95

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

440,314

 

15,040,180

 

34.16

 

15,635,057

 

35.51

 

—

 

—

 

—

 

—

 

—

 

2005

 

847,475

 

34,588,260

 

40.81

 

35,095,750

 

41.41

 

—

 

—

 

—

 

—

 

—

 

2006

 

550,049

 

20,104,625

 

36.55

 

20,454,872

 

37.19

 

253,704

 

3,637,962

 

14.34

 

3,637,962

 

14.34

 

2007

 

460,838

 

17,723,934

 

38.46

 

19,067,767

 

41.38

 

144,140

 

1,813,124

 

12.58

 

2,236,404

 

15.52

 

2008

 

326,641

 

10,505,258

 

32.16

 

11,059,733

 

33.86

 

—

 

—

 

—

 

—

 

—

 

2009

 

995,470

 

36,971,788

 

37.14

 

40,764,088

 

40.95

 

—

 

—

 

—

 

—

 

—

 

2010

 

197,524

 

7,638,453

 

38.67

 

8,400,105

 

42.53

 

—

 

—

 

—

 

—

 

—

 

2011

 

762,735

 

28,440,890

 

37.29

 

33,578,037

 

44.02

 

80,000

 

1,584,819

 

19.81

 

1,784,820

 

22.31

 

2012

 

613,127

 

22,454,543

 

36.62

 

24,943,670

 

40.68

 

67,362

 

1,481,908

 

22.00

 

1,633,473

 

24.25

 

Thereafter

 

858,075

 

33,113,181

 

38.59

 

41,754,114

 

48.66

 

—

 

—

 

—

 

—

 

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

128,105

 

$

956,761

 

$

7.47

 

$

956,761

 

$

7.47

 

27,569

 

$

2,984,756

 

$

108.26

 

$

2,944,604

 

$

106.81

 

2004

 

—

 

—

 

—

 

—

 

—

 

40,867

 

3,829,896

 

93.72

 

3,838,404

 

93.92

 

2005

 

—

 

—

 

—

 

—

 

—

 

60,671

 

2,428,039

 

40.02

 

2,515,735

 

41.47

 

2006

 

—

 

—

 

—

 

—

 

—

 

14,431

 

1,024,451

 

70.99

 

1,024,451

 

70.99

 

2007

 

—

 

—

 

—

 

—

 

—

 

432

 

85,923

 

198.90

 

93,300

 

215.97

 

2008

 

—

 

—

 

—

 

—

 

—

 

13,965

 

1,108,977

 

79.41

 

1,072,977

 

76.83

 

2009

 

—

 

—

 

—

 

—

 

—

 

6,250

 

492,545

 

78.81

 

492,545

 

78.81

 

2010

 

—

 

—

 

—

 

—

 

—

 

37,110

 

1,422,237

 

38.32

 

1,496,457

 

40.32

 

2011

 

—

 

—

 

—

 

—

 

—

 

11,599

 

609,538

 

52.55

 

658,038

 

56.73

 

2012

 

—

 

—

 

—

 

—

 

—

 

52,284

 

1,752,004

 

33.51

 

1,812,228

 

34.66

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

405,596

 

14,957,817

 

36.88

 

17,556,164

 

43.28

 

 

31

 

IN-SERVICE GREATER BOSTON PROPERTIES

 

Quarterly Lease Expirations - Greater Boston

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

Q3 2003

 

70,165

 

2,534,471

 

39.12

 

2,534,471

 

36.12

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

26,311

 

749,511

 

28.49

 

741,111

 

28.17

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

96,476

 

$

3,283,982

 

$

34.04

 

$

3,275,582

 

$

33.95

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

57,562

 

$

1,998,437

 

34.72

 

$

1,998,437

 

34.72

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2004

 

89,659

 

2,806,115

 

31.30

 

3,014,739

 

33.62

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

190,498

 

6,668,030

 

35.00

 

7,027,038

 

36.89

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

102,595

 

3,567,598

 

34.77

 

3,594,843

 

35.04

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

440,314

 

$

15,040,180

 

$

34.16

 

$

15,635,057

 

$

35.51

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

128,105

 

956,761

 

7.47

 

956,761

 

7.47

 

1,275

 

193,000

 

151.37

 

193,000

 

151.37

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

26,294

 

2,791,756

 

106.17

 

2,751,604

 

104.65

 

Total 2003

 

128,105

 

$

956,761

 

$

7.47

 

$

956,761

 

$

7.47

 

27,569

 

$

2,984,756

 

$

108.26

 

$

2,944,604

 

$

106.81

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

$

—

 

$

—

 

—

 

$

—

 

22,053

 

$

1,809,059

 

82.03

 

$

1,795,559

 

$

81.42

 

Q2 2004

 

—

 

—

 

—

 

—

 

—

 

10,794

 

1,445,749

 

133.94

 

1,439,749

 

133.38

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

3,187

 

292,281

 

91.71

 

292,281

 

91.71

 

Q4 2004

 

—

 

—

 

—

 

—

 

—

 

4,833

 

282,808

 

58.52

 

310,816

 

64.31

 

Total 2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

40,867

 

$

3,289,897

 

$

93.72

 

$

3,838,405

 

$

93.92

 

 

32

 

IN-SERVICE GREATER WASHINGTON PROPERTIES

 

Lease Expirations - Greater Washington

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

51,864

 

$

1,570,503

 

$

30.28

 

$

1,572,470

 

$

30.32

 

86,380

 

$

1,631,218

 

$

18.88

 

$

1,631,218

 

$

18.88

 

2004

 

220,253

 

8,297,233

 

37.67

 

8,369,980

 

38.00

 

67,791

 

1,276,908

 

18.84

 

1,283,396

 

18.93

 

2005

 

461,175

 

16,737,007

 

36.29

 

17,603,700

 

38.17

 

101,345

 

1,454,787

 

14.35

 

1,518,693

 

14.99

 

2006

 

421,027

 

12,044,319

 

28.61

 

12,801,556

 

30.41

 

33,400

 

527,690

 

15.80

 

569,160

 

17.04

 

2007

 

629,566

 

20,770,865

 

32.99

 

21,221,683

 

33.71

 

163,422

 

3,493,161

 

21.38

 

3,520,715

 

21.54

 

2008

 

461,613

 

13,921,818

 

30.16

 

14,673,677

 

31.79

 

23,439

 

361,314

 

15.42

 

399,557

 

17.05

 

2009

 

713,857

 

24,549,275

 

34.39

 

25,998,982

 

36.42

 

—

 

—

 

—

 

—

 

—

 

2010

 

518,249

 

20,342,687

 

39.25

 

23,773,568

 

45.87

 

79,971

 

1,170,372

 

14.63

 

1,170,372

 

14.63

 

2011

 

1,062,026

 

32,987,680

 

31.06

 

38,955,413

 

36.68

 

57,321

 

794,782

 

13.87

 

797,594

 

13.91

 

2012

 

434,504

 

15,435,208

 

35.52

 

19,438,658

 

44.74

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

994,592

 

29,171,416

 

29.33

 

37,702,400

 

37.91

 

205,304

 

3,692,408

 

17.99

 

4,303,743

 

20.96

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

—

 

—

 

—

 

—

 

—

 

2,151

 

103,154

 

47.96

 

103,154

 

47.96

 

2005

 

—

 

—

 

—

 

—

 

—

 

4,274

 

141,964

 

33.22

 

143,882

 

33.66

 

2006

 

—

 

—

 

—

 

—

 

—

 

3,309

 

114,577

 

34.63

 

114,942

 

34.74

 

2007

 

—

 

—

 

—

 

—

 

—

 

16,548

 

423,430

 

25.59

 

446,136

 

26.96

 

2008

 

—

 

—

 

—

 

—

 

—

 

16,338

 

598,212

 

36.61

 

685,147

 

41.94

 

2009

 

—

 

—

 

—

 

—

 

—

 

3,871

 

41,744

 

10.78

 

41,744

 

10.78

 

2010

 

—

 

—

 

—

 

—

 

—

 

10,277

 

373,278

 

36.32

 

433,983

 

42.23

 

2011

 

—

 

—

 

—

 

—

 

—

 

11,221

 

475,535

 

42.38

 

535,392

 

47.71

 

2012

 

—

 

—

 

—

 

—

 

—

 

10,046

 

265,496

 

26.43

 

324,961

 

32.35

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

36,415

 

1,453,553

 

39.92

 

1,910,903

 

52.48

 

 

33

 

IN-SERVICE GREATER WASHINGTON PROPERTIES

 

Quarterly Lease Expirations - Greater Washington

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

17,139

 

470,291

 

27.44

 

470,291

 

27.44

 

79,380

 

1,511,667

 

19.04

 

1,511,667

 

19.04

 

Q4 2003

 

34,725

 

1,100,212

 

31.68

 

1,102,180

 

31.74

 

7,000

 

119,551

 

17.08

 

119,551

 

17.08

 

Total 2003

 

51,864

 

$

1,570,503

 

$

30.28

 

$

1,572,470

 

$

30.32

 

86,380

 

$

1,631,218

 

$

18.88

 

$

1,631,218

 

$

18.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

50,565

 

$

1,690,445

 

$

33

 

1,690,445

 

33.43

 

14,338

 

$

239,826

 

16.73

 

239,826

 

16.73

 

Q2 2004

 

40,483

 

1,309,095

 

32.34

 

1,311,547

 

32.40

 

43,101

 

811,781

 

18.83

 

811,781

 

18.83

 

Q3 2004

 

97,372

 

4,051,136

 

41.60

 

4,093,967

 

42.04

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

31,833

 

1,246,557

 

39.16

 

1,274,021

 

40.02

 

10,352

 

225,301

 

21.76

 

231,788

 

22.39

 

Total 2004

 

220,253

 

$

8,297,233

 

$

37.67

 

$

8,369,980

 

$

38.00

 

67,791

 

$

1,276,908

 

$

18.84

 

$

1,283,395

 

$

18.93

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

—

 

$

—

 

$

—

 

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2004

 

—

 

—

 

—

 

—

 

—

 

2,151

 

103,154

 

47.96

 

103,154

 

47.96

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2,151

 

$

103,154

 

$

47.96

 

$

103,154

 

$

47.96

 

 

34

 

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

 

Lease Expirations - Greater San Francisco

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

315,509

 

$

12,112,073

 

$

38.39

 

$

12,257,966

 

$

38.85

 

25,055

 

$

388,311

 

$

15.50

 

$

388,311

 

$

15.50

 

2004

 

558,525

 

24,956,471

 

44.68

 

25,000,116

 

44.76

 

14,500

 

239,724

 

16.53

 

243,984

 

16.83

 

2005

 

347,813

 

16,298,546

 

46.86

 

16,762,459

 

48.19

 

47,069

 

665,187

 

14.13

 

688,817

 

14.63

 

2006

 

833,580

 

43,286,781

 

51.93

 

44,935,397

 

53.91

 

10,500

 

163,584

 

15.58

 

175,044

 

16.67

 

2007

 

407,813

 

20,496,382

 

50.26

 

21,011,415

 

51.52

 

10,350

 

128,880

 

12.45

 

158,400

 

15.30

 

2008

 

222,382

 

9,373,871

 

42.15

 

9,723,658

 

43.73

 

1,500

 

18,720

 

12.48

 

20,160

 

13.44

 

2009

 

241,254

 

11,150,239

 

46.22

 

11,815,396

 

48.97

 

—

 

—

 

—

 

—

 

—

 

2010

 

185,628

 

11,197,216

 

60.32

 

12,990,794

 

69.98

 

—

 

—

 

—

 

—

 

—

 

2011

 

192,684

 

17,982,929

 

93.33

 

18,475,523

 

95.89

 

—

 

—

 

—

 

—

 

—

 

2012

 

127,771

 

5,459,564

 

42.73

 

5,974,226

 

46.76

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

180,312

 

7,328,303

 

40.64

 

7,909,169

 

43.86

 

—

 

—

 

—

 

—

 

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

27,054

 

$

1,067,047

 

$

39.44

 

$

1,067,047

 

$

39.44

 

2004

 

40,000

 

424,836

 

10.62

 

434,436

 

10.86

 

29,485

 

1,432,066

 

48.57

 

1,432,066

 

48.57

 

2005

 

—

 

—

 

—

 

—

 

—

 

23,012

 

1,142,616

 

49.65

 

1,163,632

 

50.57

 

2006

 

—

 

—

 

—

 

—

 

—

 

18,043

 

903,565

 

50.08

 

910,694

 

50.47

 

2007

 

20,000

 

241,890

 

12.09

 

260,859

 

13.04

 

18,341

 

1,145,990

 

62.48

 

1,231,740

 

67.16

 

2008

 

—

 

—

 

—

 

—

 

—

 

27,970

 

1,536,359

 

54.93

 

1,557,353

 

55.68

 

2009

 

—

 

—

 

—

 

—

 

—

 

35,048

 

1,597,243

 

45.57

 

1,683,981

 

48.05

 

2010

 

—

 

—

 

—

 

—

 

—

 

30,749

 

1,305,084

 

42.44

 

1,475,171

 

47.97

 

2011

 

—

 

—

 

—

 

—

 

—

 

3,474

 

203,930

 

58.70

 

234,550

 

67.52

 

2012

 

—

 

—

 

—

 

—

 

—

 

33,641

 

2,182,836

 

64.89

 

2,457,670

 

73.06

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

9,574

 

756,394

 

79.00

 

854,251

 

89.23

 

 

35

 

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

 

Quarterly Lease Expirations - Greater San Francisco

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

31,939

 

1,402,791

 

43.92

 

1,402,791

 

43.92

 

17,047

 

258,408

 

15.16

 

258,408

 

15.16

 

Q4 2003

 

283,570

 

10,709,282

 

37.77

 

10,855,175

 

38.28

 

8,008

 

129,903

 

16.22

 

129,903

 

16.22

 

Total 2003

 

315,509

 

$

12,112,073

 

$

38.39

 

$

12,257,966

 

38.85

 

25,055

 

$

388,311

 

$

15.50

 

$

388,311

 

$

15.50

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

34,574

 

1,870,502

 

54.10

 

1,884,627

 

54.51

 

—

 

$

—

 

$

—

 

—

 

$

—

 

Q2 2004

 

152,623

 

5,650,821

 

37.02

 

5,650,821

 

37.02

 

5,000

 

80,040

 

16.01

 

80,040

 

16.01

 

Q3 2004

 

235,737

 

11,158,631

 

47.34

 

11,164,947

 

47.36

 

5,500

 

102,936

 

18.72

 

105,576

 

19.20

 

Q4 2004

 

135,591

 

6,276,517

 

46.29

 

6,299,720

 

46.46

 

4,000

 

56,748

 

14.19

 

58,368

 

14.59

 

Total 2004

 

558,525

 

$

24,956,471

 

$

44.68

 

$

25,000,115

 

$

44.76

 

14,500

 

$

239,724

 

$

16.53

 

$

243,984

 

$

16.83

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

—

 

—

 

—

 

—

 

—

 

5,410

 

235,302

 

43.49

 

235,302

 

43.49

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

21,644

 

831,746

 

38.43

 

831,746

 

38.43

 

Total 2003

 

—

 

$

—

 

$

—

 

$

—

 

—

 

27,054

 

$

1,067,048

 

$

39.44

 

$

1,067,048

 

$

39.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

—

 

—

 

—

 

—

 

16,598

 

$

717,244

 

$

43.21

 

717,244

 

$

43.21

 

Q2 2004

 

—

 

—

 

—

 

—

 

—

 

200

 

3,600

 

18.00

 

3,600

 

18.00

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

4,982

 

285,923

 

57.39

 

285,923

 

57.39

 

Q4 2004

 

40,000

 

424,836

 

10.62

 

434,436

 

10.86

 

7,705

 

425,299

 

55.20

 

425,299

 

55.20

 

Total 2004

 

40,000

 

$

424,836

 

$

10.62

 

$

434,436

 

$

10.86

 

29,485

 

$

1,432,066

 

$

48.57

 

$

1,432,066

 

$

48.57

 

 

36

 

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

 

Lease Expirations - Midtown Manhattan

 

 

 

 

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

37,970

 

$

2,093,157

 

$

55.13

 

$

2,093,157

 

$

55.13

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

153,624

 

9,469,506

 

61.64

 

9,484,530

 

61.74

 

—

 

—

 

—

 

—

 

—

 

2005

 

102,427

 

7,045,706

 

68.79

 

7,084,630

 

69.17

 

—

 

—

 

—

 

—

 

—

 

2006

 

428,385

 

29,328,051

 

68.46

 

29,621,253

 

69.15

 

—

 

—

 

—

 

—

 

—

 

2007

 

180,808

 

10,975,186

 

60.70

 

11,078,081

 

61.27

 

—

 

—

 

—

 

—

 

—

 

2008

 

454,408

 

27,597,689

 

60.73

 

28,979,435

 

63.77

 

—

 

—

 

—

 

—

 

—

 

2009

 

280,620

 

17,046,517

 

60.75

 

19,138,307

 

68.20

 

—

 

—

 

—

 

—

 

—

 

2010

 

274,195

 

18,927,466

 

69.03

 

19,994,243

 

72.92

 

—

 

—

 

—

 

—

 

—

 

2011

 

363,724

 

21,211,117

 

58.32

 

24,535,846

 

67.46

 

—

 

—

 

—

 

—

 

—

 

2012

 

891,075

 

51,026,407

 

57.26

 

52,083,280

 

58.45

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

3,032,320

 

179,823,376

 

59.30

 

217,061,175

 

71.58

 

—

 

—

 

—

 

—

 

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

800

 

$

261,210

 

$

326.51

 

$

261,210

 

$

326.51

 

2004

 

—

 

—

 

—

 

—

 

—

 

1,650

 

184,730

 

111.96

 

187,524

 

113.65

 

2005

 

—

 

—

 

—

 

—

 

—

 

1,514

 

283,800

 

187.45

 

295,107

 

194.92

 

2006

 

—

 

—

 

—

 

—

 

—

 

10,607

 

647,479

 

61.04

 

662,100

 

62.42

 

2007

 

—

 

—

 

—

 

—

 

—

 

826

 

183,204

 

221.80

 

199,436

 

241.45

 

2008

 

—

 

—

 

—

 

—

 

—

 

3,232

 

149,192

 

46.16

 

165,734

 

51.28

 

2009

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2010

 

—

 

—

 

—

 

—

 

—

 

5,030

 

336,496

 

66.90

 

413,996

 

82.31

 

2011

 

—

 

—

 

—

 

—

 

—

 

14,995

 

1,306,007

 

87.10

 

1,565,859

 

104.43

 

2012

 

—

 

—

 

—

 

—

 

—

 

5,639

 

621,841

 

110.28

 

818,811

 

145.20

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

152,056

 

13,205,652

 

86.85

 

17,309,516

 

113.84

 

 

37

 

Quarterly Lease Expirations - Midtown Manhattan

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

12,471

 

712,698

 

57.15

 

712,698

 

57.15

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

25,499

 

1,380,459

 

54.14

 

1,380,459

 

54.14

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

37,970

 

$

2,093,157

 

$

55.13

 

$

2,093,157

 

$

55.13

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

$

—

 

—

 

$

—

 

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2004

 

49,328

 

4,012,217

 

81.34

 

4,012,217

 

81.34

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

104,296

 

5,457,288

 

52.33

 

5,472,312

 

52.47

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

153,624

 

$

9,469,505

 

$

61.64

 

$

9,484,529

 

$

61.74

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

800

 

261,210

 

326.51

 

261,210

 

326.51

 

Total 2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

800

 

$

261,210

 

$

326.51

 

$

261,210

 

$

326.51

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2004

 

—

 

—

 

—

 

—

 

—

 

350

 

47,861

 

136.75

 

50,655

 

144.73

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

—

 

—

 

—

 

—

 

—

 

1,300

 

136,869

 

105.28

 

136,869

 

105.28

 

Total 2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

1,650

 

$

184,730

 

$

111.96

 

$

187,524

 

$

113.65

 

 

38

 

Lease Expirations - Princeton/East Brunswick

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

80,586

 

$

2,243,192

 

$

27.84

 

$

2,243,192

 

$

27.84

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

416,315

 

12,670,396

 

30.43

 

12,670,396

 

30.43

 

—

 

—

 

—

 

—

 

—

 

2005

 

228,388

 

7,194,245

 

31.50

 

7,245,104

 

31.72

 

—

 

—

 

—

 

—

 

—

 

2006

 

89,577

 

3,026,823

 

33.79

 

3,162,833

 

35.31

 

—

 

—

 

—

 

—

 

—

 

2007

 

510,959

 

14,651,330

 

28.67

 

15,804,639

 

30.93

 

—

 

—

 

—

 

—

 

—

 

2008

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2009

 

161,514

 

5,204,053

 

32.22

 

5,818,297

 

36.02

 

—

 

—

 

—

 

—

 

—

 

2010

 

154,917

 

5,106,368

 

32.96

 

5,603,900

 

36.17

 

—

 

—

 

—

 

—

 

—

 

2011

 

255,083

 

7,774,595

 

30.48

 

8,616,363

 

33.78

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

281,175

 

8,469,358

 

30.12

 

9,376,373

 

33.35

 

—

 

—

 

—

 

—

 

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

—

 

—

 

—

 

—

 

—

 

2,904

 

48,000

 

16.53

 

48,000

 

16.53

 

2005

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2006

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2007

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2008

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2009

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2010

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2011

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

39

 

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

 

Quarterly Lease Expirations - Princeton/East Brunswick

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

11,302

 

315,432

 

27.91

 

315,432

 

27.91

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

69,284

 

1,927,760

 

27.82

 

1,927,760

 

27.82

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

80,586

 

$

 2,243,192

 

$

 27.84

 

$

 2,243,192

 

$

 27.84

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

18,592

 

$

 574,633

 

$

 30.91

 

$

 574,633

 

$

 30.91

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

Q2 2004

 

54,636

 

1,536,832

 

28.13

 

1,536,832

 

28.13

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

121,054

 

3,715,691

 

30.69

 

3,715,691

 

30.69

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

222,033

 

6,843,240

 

30.82

 

6,843,240

 

30.82

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

416,315

 

$

 12,670,396

 

$

 30.43

 

$

 12,670,396

 

$

 30.43

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 2004

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

Q2 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

—

 

—

 

—

 

—

 

—

 

2,904

 

48,000

 

16.53

 

48,000

 

16.53

 

Total 2004

 

—

 

$

 —

 

$

 —

 

$

 —

 

$

 —

 

2,904

 

$

 48,000

 

$

 16.53

 

$

 48,000

 

$

 16.53

 

 

40

 

IN-SERVICE OTHER PROPERTIES

 

Lease Expirations
Other Properties (Richmond, VA, Baltimore, MD, Bucks County, PA)

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

106,998

 

$

2,543,669

 

$

23.77

 

$

2,548,969

 

$

23.82

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

78,408

 

1,817,980

 

23.19

 

1,850,267

 

23.60

 

—

 

—

 

—

 

—

 

—

 

2005

 

399,159

 

10,185,084

 

25.52

 

10,494,227

 

26.29

 

—

 

—

 

—

 

—

 

—

 

2006

 

626,495

 

19,045,966

 

30.40

 

19,555,781

 

31.21

 

—

 

—

 

—

 

—

 

—

 

2007

 

89,093

 

2,890,971

 

32.45

 

2,937,756

 

32.97

 

—

 

—

 

—

 

—

 

—

 

2008

 

5,398

 

165,486

 

30.66

 

183,967

 

34.08

 

—

 

—

 

—

 

—

 

—

 

2009

 

31,164

 

761,151

 

24.42

 

867,509

 

27.84

 

—

 

—

 

—

 

—

 

—

 

2010

 

28,840

 

622,068

 

21.57

 

701,692

 

24.33

 

—

 

—

 

—

 

—

 

—

 

2011

 

4,618

 

124,098

 

26.87

 

139,614

 

30.23

 

—

 

—

 

—

 

—

 

—

 

2012

 

30,566

 

955,188

 

31.25

 

1,219,278

 

39.89

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

8,721

 

$

—

 

$

8,721

 

$

—

 

2004

 

161,000

 

771,048

 

4.79

 

771,048

 

4.79

 

2,183

 

72,623

 

33.27

 

72,623

 

33.27

 

2005

 

—

 

—

 

—

 

—

 

—

 

5,296

 

254,921

 

48.13

 

268,765

 

50.75

 

2006

 

—

 

—

 

—

 

—

 

—

 

3,336

 

162,382

 

48.68

 

162,382

 

48.68

 

2007

 

—

 

—

 

—

 

—

 

—

 

6,700

 

262,854

 

39.23

 

262,854

 

39.23

 

2008

 

—

 

—

 

—

 

—

 

—

 

3,561

 

77,679

 

21.81

 

90,705

 

25.47

 

2009

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2010

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2011

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

14,578

 

287,054

 

19.69

 

391,422

 

26.85

 

 

41

 

IN-SERVICE OTHER PROPERTIES

 

Quarterly Lease Expirations
Other Properties (Richmond, VA, Baltimore, MD, Bucks County, PA)

 

 

 

OFFICE

 

OFFICE/TECHNICAL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

26,400

 

586,854

 

22.23

 

586,854

 

22.23

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

80,598

 

1,956,815

 

24.28

 

1,962,114

 

24.34

 

—

 

—

 

—

 

—

 

—

 

Total 2003

 

106,998

 

$

2,543,669

 

$

23.77

 

$

2,548,968

 

$

23.82

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2004

 

9,483

 

303,637

 

32.02

 

305,627

 

32.23

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

66,935

 

1,451,075

 

21.68

 

1,479,528

 

22.10

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

1,990

 

63,268

 

31.79

 

65,113

 

32.72

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

78,408

 

$

1,817,980

 

$

23.19

 

$

1,850,268

 

$

23.60

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INDUSTRIAL

 

RETAIL

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

Q2 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q3 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2003

 

—

 

—

 

—

 

—

 

—

 

—

 

8,721

 

—

 

8,721

 

—

 

Total 2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

—

 

$

8,721

 

$

—

 

$

8,721

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1  2004

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2,183

 

$

72,623

 

$

33.27

 

$

72,623

 

$

33.27

 

Q2 2004

 

161,000

 

771,048

 

4.79

 

771,048

 

4.79

 

—

 

—

 

—

 

—

 

—

 

Q3 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Q4 2004

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Total 2004

 

161,000

 

$

771,048

 

$

4.79

 

$

771,048

 

$

4.79

 

2,183

 

$

72,623

 

$

33.27

 

$

72,623

 

$

33.27

 

 

42

 

CBD PROPERTIES

 

Lease Expirations

 

 

 

Greater Boston

 

Greater Washington

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003 (1)

 

34,835

 

$

3,459,596

 

$

99.31

 

$

3,419,444

 

$

98.16

 

22,792

 

$

849,633

 

$

37.28

 

$

851,601

 

$

37.36

 

2004 (2)

 

142,477

 

8,292,785

 

58.20

 

8,648,438

 

60.70

 

145,918

 

6,134,331

 

42.04

 

6,198,348

 

42.48

 

2005

 

582,044

 

26,842,391

 

46.12

 

27,332,483

 

46.96

 

203,504

 

8,100,289

 

39.80

 

8,528,207

 

41.91

 

2006

 

176,117

 

8,686,145

 

49.32

 

8,826,520

 

50.12

 

26,961

 

1,030,252

 

38.21

 

1,080,177

 

40.06

 

2007

 

152,862

 

8,156,943

 

53.36

 

8,411,756

 

55.03

 

275,177

 

9,322,118

 

33.88

 

9,480,965

 

34.45

 

2008

 

81,259

 

3,533,274

 

43.48

 

3,616,474

 

44.51

 

31,917

 

1,179,830

 

36.97

 

1,356,217

 

42.49

 

2009

 

718,525

 

26,712,908

 

37.18

 

29,825,085

 

41.51

 

441,576

 

15,706,938

 

35.57

 

17,106,613

 

38.74

 

2010

 

150,555

 

6,335,529

 

42.08

 

7,081,514

 

47.04

 

213,938

 

7,703,422

 

36.01

 

9,129,945

 

42.68

 

2011

 

434,991

 

21,856,742

 

50.25

 

26,067,545

 

59.93

 

106,022

 

3,482,017

 

32.84

 

4,294,606

 

40.51

 

2012

 

308,360

 

13,841,377

 

44.89

 

14,744,121

 

47.81

 

77,318

 

2,876,971

 

37.21

 

2,894,478

 

37.44

 

Thereafter

 

1,263,671

 

48,070,998

 

38.04

 

59,310,279

 

46.93

 

55,969

 

2,501,937

 

44.70

 

3,398,560

 

60.72

 

 

 

 

New York

 

San Francisco

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

38,770

 

$

2,354,367

 

$

60.73

 

$

2,354,367

 

$

60.73

 

127,830

 

$

5,690,663

 

$

44.52

 

$

5,690,663

 

$

44.52

 

2004

 

155,274

 

9,654,236

 

62.18

 

9,672,054

 

62.29

 

546,663

 

24,694,156

 

45.17

 

24,714,598

 

45.21

 

2005

 

103,941

 

7,329,506

 

70.52

 

7,379,738

 

71.00

 

311,833

 

14,775,150

 

47.38

 

14,823,142

 

47.54

 

2006

 

438,992

 

29,975,530

 

68.28

 

30,283,354

 

68.98

 

813,193

 

41,852,488

 

51.47

 

43,271,831

 

53.21

 

2007

 

181,634

 

11,158,390

 

61.43

 

11,277,517

 

62.09

 

412,879

 

21,137,160

 

51.19

 

21,720,088

 

52.61

 

2008

 

457,640

 

27,746,881

 

60.63

 

29,145,169

 

63.69

 

225,969

 

10,258,576

 

45.40

 

10,562,863

 

46.74

 

2009

 

280,620

 

17,046,517

 

60.75

 

19,138,307

 

68.20

 

271,046

 

12,562,439

 

46.35

 

13,284,690

 

49.01

 

2010

 

279,225

 

19,263,962

 

68.99

 

20,408,239

 

73.09

 

208,653

 

12,334,299

 

59.11

 

14,234,244

 

68.22

 

2011

 

378,719

 

22,517,124

 

59.46

 

26,101,705

 

68.92

 

196,158

 

18,186,859

 

92.72

 

18,710,073

 

95.38

 

2012

 

896,714

 

51,648,248

 

57.60

 

52,902,091

 

59.00

 

161,412

 

7,642,400

 

47.35

 

8,431,895

 

52.24

 

Thereafter

 

3,184,376

 

193,029,029

 

60.62

 

234,370,691

 

73.60

 

189,886

 

8,084,697

 

42.58

 

8,763,420

 

46.15

 

 

 

 

New Jersey

 

Other

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

106,998

 

$

2,552,390

 

$

23.85

 

$

2,557,690

 

$

23.90

 

2004

 

—

 

—

 

—

 

—

 

—

 

80,591

 

1,890,603

 

23.46

 

1,922,890

 

23.86

 

2005

 

—

 

—

 

—

 

—

 

—

 

404,455

 

10,440,004

 

25.81

 

10,762,993

 

26.61

 

2006

 

—

 

—

 

—

 

—

 

—

 

629,831

 

19,208,348

 

30.50

 

19,718,163

 

31.31

 

2007

 

—

 

—

 

—

 

—

 

—

 

95,793

 

3,153,825

 

32.92

 

3,200,611

 

33.41

 

2008

 

—

 

—

 

—

 

—

 

—

 

8,959

 

243,165

 

27.14

 

274,672

 

30.66

 

2009

 

—

 

—

 

—

 

—

 

—

 

31,164

 

761,151

 

24.42

 

867,509

 

27.84

 

2010

 

—

 

—

 

—

 

—

 

—

 

28,840

 

622,068

 

21.57

 

701,692

 

24.33

 

2011

 

—

 

—

 

—

 

—

 

—

 

4,618

 

124,098

 

26.87

 

139,614

 

30.23

 

2012

 

—

 

—

 

—

 

—

 

—

 

30,566

 

955,188

 

31.25

 

1,219,278

 

39.89

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

14,578

 

287,054

 

19.69

 

391,422

 

26.85

 

 

(1)          Includes 23,069 square feet of retail space and kiosks at an average current rent on expiring leases of $128.60 per square foot and an average rent on expiring leases with future step-ups of $126.36 per square foot.

 

(2)          Includes 40,867 square feet of retail space and kiosks at an average current rent on expiring leases of $93.72 per square foot and an average rent on expiring leases with future step-ups of $93.92 per square foot.

 

 

43

 

 

SUBURBAN PROPERTIES

 

Lease Expirations

 

 

 

Greater Boston

 

Greater Washington

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

217,315

 

$

3,765,903

 

$

17.33

 

$

3,757,503

 

$

17.29

 

115,452

 

$

2,352,088

 

$

20.37

 

$

2,352,088

 

$

20.37

 

2004

 

338,704

 

10,577,291

 

31.23

 

10,825,023

 

31.96

 

144,277

 

3,542,965

 

24.56

 

3,558,182

 

24.66

 

2005

 

326,102

 

10,173,908

 

31.20

 

10,279,002

 

31.52

 

363,290

 

10,233,469

 

28.17

 

10,738,068

 

29.56

 

2006

 

642,067

 

16,080,892

 

25.05

 

16,290,766

 

25.37

 

430,775

 

11,656,334

 

27.06

 

12,405,481

 

28.80

 

2007

 

452,548

 

11,466,038

 

25.34

 

12,985,714

 

28.69

 

534,359

 

15,365,337

 

28.75

 

15,707,569

 

29.40

 

2008

 

259,347

 

8,080,962

 

31.16

 

8,516,236

 

32.84

 

469,473

 

13,701,514

 

29.18

 

14,402,164

 

30.68

 

2009

 

283,195

 

10,751,425

 

37.96

 

11,431,548

 

40.37

 

276,152

 

8,884,081

 

32.17

 

8,934,112

 

32.35

 

2010

 

84,079

 

2,725,161

 

32.41

 

2,815,048

 

33.48

 

394,559

 

14,182,915

 

35.95

 

16,247,977

 

41.18

 

2011

 

419,343

 

8,778,506

 

20.93

 

9,953,349

 

23.74

 

1,024,546

 

30,775,979

 

30.04

 

35,993,792

 

35.13

 

2012

 

424,413

 

11,847,079

 

27.91

 

13,645,250

 

32.15

 

367,232

 

12,823,733

 

34.92

 

16,869,141

 

45.94

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

1,180,342

 

31,815,440

 

26.95

 

40,518,486

 

34.33

 

 

 

 

New York

 

San Francisco

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under

Expiring Leases

 

Per
Square
Foot

 

Annualized
Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

239,788

 

$

7,876,768

 

$

32.85

 

$

8,022,661

 

$

33.46

 

2004

 

—

 

—

 

—

 

—

 

—

 

95,847

 

2,358,941

 

24.61

 

2,396,004

 

25.00

 

2005

 

—

 

—

 

—

 

—

 

—

 

106,061

 

3,331,199

 

31.41

 

3,791,766

 

35.75

 

2006

 

—

 

—

 

—

 

—

 

—

 

48,930

 

2,501,442

 

51.12

 

2,749,304

 

56.19

 

2007

 

—

 

—

 

—

 

—

 

—

 

43,625

 

875,982

 

20.08

 

942,326

 

21.60

 

2008

 

—

 

—

 

—

 

—

 

—

 

25,883

 

670,374

 

25.90

 

738,308

 

28.52

 

2009

 

—

 

—

 

—

 

—

 

—

 

5,256

 

185,043

 

35.21

 

214,687

 

40.85

 

2010

 

—

 

—

 

—

 

—

 

—

 

7,724

 

168,000

 

21.75

 

231,720

 

30.00

 

2011

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

 

 

 

New Jersey

 

 

 

Other

 

 

 

Year of Lease
Expiration

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

Rentable Square
Footage Subject to
Expiring Leases

 

Current Annualized
Revenues Under
Expiring Leases

 

Per
Square
Foot

 

Revenues Under
Expiring Leases
with future step-ups

 

Per
Square
Foot

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2003

 

80,586

 

$

2,243,192

 

$

27.84

 

$

2,243,192

 

$

27.84

 

—

 

$

—

 

$

—

 

$

—

 

$

—

 

2004

 

419,219

 

12,718,396

 

30.34

 

12,718,396

 

30.34

 

161,000

 

771,048

 

4.79

 

771,048

 

4.79

 

2005

 

228,388

 

7,194,245

 

31.50

 

7,245,104

 

31.72

 

—

 

—

 

—

 

—

 

—

 

2006

 

89,577

 

3,026,823

 

33.79

 

3,162,833

 

35.31

 

—

 

—

 

—

 

—

 

—

 

2007

 

510,959

 

14,651,330

 

28.67

 

15,804,639

 

30.93

 

—

 

—

 

—

 

—

 

—

 

2008

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

2009

 

161,514

 

5,204,053

 

32.22

 

5,818,297

 

36.02

 

—

 

—

 

—

 

—

 

—

 

2010

 

154,917

 

5,106,368

 

32.96

 

5,603,900

 

36.17

 

—

 

—

 

—

 

—

 

—

 

2011

 

255,083

 

7,774,595

 

30.48

 

8,616,363

 

33.78

 

—

 

—

 

—

 

—

 

—

 

2012

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

—

 

Thereafter

 

281,175

 

8,469,358

 

30.12

 

9,376,373

 

33.35

 

—

 

—

 

—

 

—

 

—

 

 

44

 

HOTEL PERFORMANCE

 

Long Wharf Marriott - Boston

 

 

 

Second Quarter
2003

 

Second Quarter
2002

 

Percent
Change

 

YTD
2003

 

YTD
2002

 

Percent
Change

 

Occupancy

 

81.8

%

88.2

%

-7.3

%

76.8

%

82.2

%

-6.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate

 

$

205.76

 

$

219.02

 

-6.1

%

$

186.31

 

$

200.41

 

-7.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per available room

 

$

168.31

 

$

193.25

 

-12.9

%

$

143.12

 

$

164.64

 

-13.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Revenues Less Hotel Operating Expenses (in thousands)

 

$

2,470

 

$

2,728

 

-9.5

%

$

3,397

 

$

3,958

 

-14.2

%

 

Cambridge Center Marriott

 

 

 

Second Quarter
2003

 

Second Quarter
2002

 

Percent
Change

 

YTD
2003

 

YTD
2002

 

Percent
Change

 

Occupancy

 

77.7

%

81.0

%

-4.1

%

70.9

%

73.3

%

-3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate

 

$

166.87

 

$

187.36

 

-10.9

%

$

157.03

 

$

173.90

 

-9.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per available room

 

$

129.60

 

$

151.70

 

-14.6

%

$

111.33

 

$

127.49

 

-12.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Revenues Less Hotel Operating Expenses (in thousands)

 

$

1,744

 

$

2,462

 

-29.2

%

$

2,457

 

$

3,595

 

-31.7

%

 

Residence Inn by Marriott

 

 

 

Second Quarter
2003

 

Second Quarter
2002

 

Percent
Change

 

YTD
2003

 

YTD
2002

 

Percent
Change

 

Occupancy

 

80.3

%

87.6

%

-8.3

%

74.9

%

84.0

%

-10.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate

 

$

129.28

 

$

140.45

 

-8.0

%

$

123.27

 

$

133.15

 

-7.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per available room

 

$

103.77

 

$

123.08

 

-15.7

%

$

92.29

 

$

111.78

 

-17.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Revenues Less Hotel Operating Expenses (in thousands)

 

$

741

 

$

1,014

 

-26.9

%

$

1,176

 

$

1,606

 

-26.8

%

 

Total Hotel Performance

 

 

 

Second Quarter
2003

 

Second Quarter
2002

 

Percent
Change

 

YTD
2003

 

YTD
2002

 

Percent
Change

 

Occupancy

 

79.8

%

85.1

%

-6.2

%

74.0

%

78.9

%

-6.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Daily Rate

 

$

173.82

 

$

189.60

 

-8.3

%

$

161.12

 

$

175.47

 

-8.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue per available room

 

$

138.95

 

$

161.55

 

-14.0

%

$

119.46

 

$

138.37

 

-13.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel Revenues Less Hotel Operating Expenses (in thousands)

 

$

4,955

 

$

6,204

 

-20.1

%

$

7,030

 

$

9,159

 

-23.2

%

 

45

 

SAME PROPERTY PERFORMANCE

 

Office, Office/Technical, Industrial and Hotel Properties

 

 

 

Office

 

Office/Technical

 

Industrial

 

Hotel (3)

 

Total

 

Number of Properties

 

94

 

27

 

4

 

3

 

128

 

Square feet

 

25,332,890

 

1,533,211

 

385,313

 

937,874

 

28,189,288

 

Percent of in-service properties

 

86.8

%

92.3

%

100.0

%

100.0

%

87.6

%

Occupancy @ 6/30/02

 

95.1

%

94.1

%

100.0

%

—

 

95.1

%

Occupancy @ 6/30/03

 

93.9

%

90.0

%

89.3

%

—

 

93.7

%

Percent change from 2nd quarter 2003 over 2nd quarter 2002 (1):

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

1.0

%

-5.1

%

-2.0

%

-20.2

%

0.1

%

Operating expenses and real estate taxes

 

3.0

%

13.1

%

1.6

%

-21.7

%

2.6

%

Rental revenue less operating expenses and real estate taxes

 

0.0

%

-9.5

%

-3.1

%

-19.7

%

-0.9

%

Rental revenue less operating expenses and real estate taxes - without hotels

 

 

 

 

 

 

 

 

 

-0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - cash basis

 

2.6

%

-2.3

%

-0.3

%

-20.2

%

1.7

%

Rental revenue less operating expenses and real estate taxes - cash basis

 

2.3

%

-6.2

%

-0.8

%

-19.7

%

1.3

%

Rental revenue less operating expenses and real estate taxes - cash basis - without hotels

 

 

 

 

 

 

 

 

 

2.1

%

 

Same Property Lease Analysis - quarter ended June 30, 2003

 

 

 

Office

 

Office/Technical

 

Industrial

 

Total

 

Vacant space available @4/01/03 (sf)

 

1,453,082

 

144,773

 

41,168

 

1,639,023

 

Square footage of leases expiring or terminated 04/01/03-06/30/03

 

554,492

 

55,112

 

—

 

609,604

 

Total space for lease (sf)

 

2,007,574

 

199,885

 

41,168

 

2,248,627

 

New tenants (sf)

 

345,742

 

5,300

 

—

 

351,042

 

Renewals (sf)

 

115,709

 

41,847

 

—

 

157,556

 

Total space leased (sf)

 

461,451

 

47,147

 

—

 

508,598

 

Space available @6/30/03 (sf)

 

1,546,123

 

152,738

 

41,168

 

1,740,029

 

Net (increase)/decrease in available space (sf)

 

(93,041

)

(7,965

)

—

 

(101,006

)

Average lease term (months)

 

46

 

37

 

—

 

46

 

2nd generation TI/Comm PSF

 

$

36.18

 

$

0.12

 

$

—

 

$

11.90

 

Increase (decrease) in 2nd generation net rents (2)

 

-25.8

%

-3.4

%

0

%

-24.7

%

 

(1)  See page 47 for a quantitative reconciliation.

(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.)

(3)  Includes revenue and expenses from retail tenants at the hotel properties.

 

46

 

Reconciliation to Same Property Performance

(in thousands)

 

 

 

Office

 

Office/Technical

 

Industrial

 

 

 

For the three months ended

 

$

 

%

 

For the three months ended

 

$

 

%

 

For the three months ended

 

$

 

%

 

 

 

30-Jun-03

 

30-Jun-02

 

Change

 

Change

 

30-Jun-03

 

30-Jun-02

 

Change

 

Change

 

30-Jun-03

 

30-Jun-02

 

Change

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Revenue

 

$

246,430

 

$

243,750

 

 

 

 

 

$

5,624

 

$

5,939

 

 

 

 

 

$

629

 

$

642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Termination Income

 

1,419

 

1,212

 

 

 

 

 

—

 

15

 

 

 

 

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - subtotal

 

245,011

 

242,538

 

2,473

 

1.0

%

5,624

 

5,924

 

(300

)

-5.1

%

629

 

642

 

(13

)

-2.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and real estate taxes

 

78,865

 

76,591

 

2,321

 

3.0

%

1,324

 

1,171

 

153

 

13.1

%

145

 

142

 

2

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue less operating expenses and real estate taxes

 

$

166,146

 

$

165,947

 

$

199

 

0.0

%

$

4,300

 

$

4,753

 

$

(453

)

-9.5

%

$

485

 

$

500

 

$

(15

)

-3.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - subtotal

 

$

245,011

 

$

242,538

 

 

 

 

 

$

5,624

 

$

5,924

 

 

 

 

 

$

629

 

$

642

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Straight Line Rent

 

7,089

 

10,690

 

(3,601

)

 

 

20

 

187

 

(167

)

 

 

(29

)

(18

)

(11

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - cash basis

 

237,922

 

231,848

 

6,074

 

2.6

%

5,604

 

5,737

 

(133

)

-2.3

%

658

 

660

 

(2

)

-0.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and real estate taxes

 

78,865

 

76,591

 

2,274

 

3.0

%

1,324

 

1,171

 

153

 

13.1

%

145

 

142

 

2

 

1.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue less operating expenses and real estate taxes - cash basis

 

$

159,057

 

$

155,257

 

$

3,800

 

2.4

%

$

4,280

 

$

4,566

 

$

(286

)

-6.2

%

$

514

 

$

518

 

$

(4

)

-0.8

%

 

 

 

Hotel

 

Total

 

 

 

For the three months ended

 

$

 

%

 

For the three months ended

 

$

 

%

 

 

 

30-Jun-03

 

30-Jun-02

 

Change

 

Change

 

30-Jun-03

 

30-Jun-02

 

Change

 

Change

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental Revenue

 

$

6,498

 

$

8,141

 

 

 

 

 

$

259,182

 

$

258,473

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Termination Income

 

—

 

—

 

 

 

 

 

1,419

 

1,227

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - subtotal

 

6,498

 

8,141

 

$

(1,643

)

-20.2

%

257,763

 

257,246

 

517

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and real estate taxes

 

1,424

 

1,819

 

(395

)

-21.7

%

81,758

 

79,723

 

2,034

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue less operating expenses and real estate taxes

 

$

5,074

 

$

6,322

 

$

(1,248

)

-19.7

%

$

176,005

 

$

177,522

 

$

(1,517

)

-0.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - subtotal

 

$

6,498

 

$

8,141

 

 

 

 

 

$

257,763

 

$

257,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less Straight Line Rent

 

3

 

8

 

(4

)

 

 

7,083

 

10,867

 

(3,784

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue - cash basis

 

6,495

 

8,134

 

(1,639

)

-20.2

%

250,680

 

246,379

 

4,301

 

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses and real estate taxes

 

1,424

 

1,819

 

(395

)

-21.7

%

81,758

 

79,723

 

2,034

 

2.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue less operating expenses and real estate taxes - cash basis

 

$

5,071

 

$

6,315

 

$

(1,244

)

-19.7

%

$

168,922

 

$

166,656

 

$

2,267

 

1.4

%

 

47

 

PROPERTY PERFORMANCE

 

All In-Service Properties - quarter ended June 30, 2003

 

 

 

Office

 

Office/Technical

 

Industrial

 

Total

 

Vacant space available @ 04/01/03 (sf)

 

1,953,333

 

144,773

 

41,168

 

2,139,274

 

Property dispositions

 

—

 

—

 

—

 

—

 

New development completed (sf)

 

422,930

 

—

 

—

 

422,930

 

Leases expiring or terminated 04/01/03 - 06/30/03 (sf)

 

574,165

 

55,112

 

—

 

629,277

 

Total space for lease (sf)

 

2,950,428

 

199,885

 

41,168

 

3,191,481

 

New tenants (sf)

 

782,487

 

5,300

 

—

 

787,787

 

Renewals (sf)

 

115,709

 

41,847

 

 

 

157,556

 

Total space leased (sf)

 

898,196

 

47,147

 

—

 

945,343

(2)

Space available @ 06/30/03 (sf)

 

2,052,232

 

152,738

 

41,168

 

2,246,138

 

Net (increase)/decrease in available space (sf)

 

(98,899

)

(7,965

)

—

 

(106,864

)

Average lease term (months)

 

50

 

37

 

—

 

49

 

2nd generation TI/Comm PSF

 

$

13.61

 

$

0.12

 

$

—

 

$

12.33

 

Increase (decrease) in 2nd generation net rents (1)

 

-22.97

%

-3.43

%

0.00

%

-22.07

%

 

(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:

 

 

 

1st Generation

 

2nd Generation

 

Total
Leased

 

Boston

 

10,289

 

113,589

 

123,878

 

Washington

 

439,886

 

86,463

 

526,349

 

New York

 

—

 

49,285

 

49,285

 

San Francisco

 

—

 

242,778

 

242,778

 

Princeton

 

—

 

3,053

 

3,053

 

 

 

450,175

 

495,168

 

945,343

 

 

48

 

HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

 

Historical Capital Expenditures

(in thousands)

 

 

 

Q2 2003

 

Q1 2003

 

2002

 

2001

 

2000

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring capital expenditures

 

$

4,726

 

$

1,960

 

$

16,674

 

$

11,770

 

$

11,201

 

 

 

 

 

 

 

 

 

 

 

 

 

Planned non-recurring capital expenditures associated with acquisition properties (1)

 

596

 

2,324

 

31,908

 

45,052

 

25,782

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel improvements, equipment upgrades and replacements

 

911

 

405

 

3,218

 

9,230

 

5,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,233

 

$

4,689

 

$

51,800

 

$

66,052

 

$

42,680

 

 

2nd Generation Tenant Improvements and Leasing Commissions (2)

(in thousands, except per share amounts)

 

 

 

Q2 2003

 

Q1 2003

 

2002

 

2001

 

2000

 

Office

 

 

 

 

 

 

 

 

 

 

 

Square feet

 

448,021

 

501,547

 

2,122,409

 

2,394,291

 

2,913,599

 

Tenant improvement and lease commissions PSF

 

$

13.61

 

$

8.34

 

$

20.17

 

$

17.47

 

$

13.82

 

Office/Technical

 

 

 

 

 

 

 

 

 

 

 

Square feet

 

47,147

 

4,700

 

347,321

 

348,178

 

694,536

 

Tenant improvement and lease commissions PSF

 

$

0.12

 

$

0.86

 

$

1.42

 

$

3.13

 

$

2.95

 

Industrial

 

 

 

 

 

 

 

 

 

 

 

Square feet

 

—

 

—

 

244,904

 

—

 

209,125

 

Tenant improvement and lease commissions PSF

 

$

—

 

$

—

 

$

0.62

 

$

—

 

$

1.38

 

 

 

 

 

 

 

 

 

 

 

 

 

Average tenant improvement and lease commission PSF

 

$

12.33

 

$

8.27

 

$

16.01

 

$

15.65

 

$

11.16

 

 

(1)               Includes budgeted costs associated with the 18.4 million square feet of previously disclosed acquisitions

(2)               Based on leases executed during the period

 

49

 

VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS

as of June 30, 2003

 

ACQUISITIONS

 

Property

 

Date Acquired

 

Square Feet

 

Initial
Investment

 

Anticipated
Future
Investment

 

Total
Investment

 

Current
Leased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discovery Square (remaining 50% interest)

 

Apr-03

 

366,989

 

$

18,273,000

 

$

—

 

$

18,273,000

 

96

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Value Creation Pipeline – Acquisitions

 

 

 

366,989

 

$

18,273,000

 

$

—

 

$

18,273,000

 

96

%

 

DISPOSITIONS

For the period from January 1, 2003 through June 30, 2003

 

Property and other assets

 

Date Disposed

 

Square Feet

 

Gross
Sales Price

 

Book Gain(Loss)

 

 

 

 

 

 

 

 

 

 

 

The Candler Building

 

Jan-03

 

540,706

 

$

63,067,000

 

$

(292,564

)

875 Third Avenue

 

Feb-03

 

711,901

 

370,100,000

(1)

90,020,729

 

2300 N Street

 

Mar-03

 

289,243

 

122,000,000

(2)

64,310,972

 

Prudential Center garage spaces

 

May-03

 

N/A

 

1,935,000

 

153,000

 

Transfer of mortgage

 

Jun-03

 

N/A

 

4,143,000

 

4,143,000

 

 

 

 

 

 

 

 

 

 

 

Total Dispositions

 

 

 

1,541,850

 

$

561,245,000

 

$

158,335,137

 

 

(1)               Includes $8.8 million of future tenant improvement work credited to buyer at closing

(2)               Includes $8.0 million of future tenant improvement work credited to buyer at closing

 

50

 

VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS

as of June 30, 2003

 

Development Properties

 

Initial Occupancy

 

Estimated
Stabilization Date

 

Location

 

# of
Buildings

 

Square feet

 

Investment
to Date

 

Estimated
Total
Investment(1)

 

Total
Construction
Loan

 

Amount
Drawn at
June 30, 2003

 

Estimated
Future Equity
Requirement

 

Percentage
Leased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New Dominion Tech, Building Two

 

Q2 2004

 

Q2 2004

 

Herndon, VA

 

1

 

257,400

 

$

21,271,637

 

$

67,589,000

 

$

65,000,000

 

$

20,458,662

 

$

1,776,025

 

100

%

Times Square Tower

 

Q1 2004

 

Q1 2005

 

New York, NY

 

1

 

1,234,464

 

437,435,960

 

653,500,000

 

493,500,000

 

287,811,314

 

10,375,354

 

22

%

901 New York Avenue (25% ownership)

 

Q3 2004

 

Q3 2005

 

Washington, D.C.

 

1

 

538,463

 

19,081,639

 

44,777,000

 

30,000,000

 

6,284,528

 

1,979,889

 

77

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Development Properties

 

 

 

 

 

 

 

3

 

2,030,327

 

$

477,789,236

 

$

765,866,000

 

$

588,500,000

 

$

314,554,504

 

$

14,131,268

 

46

%

 

DEVELOPMENTS PLACED-IN-SERVICE DURING 2003

 

 

 

Initial
In Service Date

 

Estimated
Stabilization
Date

 

Location

 

# of
Buildings

 

Square feet

 

Investment
to Date

 

Estimated
Total
Investment

 

Construction
Loan

 

Drawn at
June 30, 2003

 

Estimated
Future Equity
Requirement

 

Percentage
Leased

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Class A Office Building

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Waltham Weston Corporate Center

 

Q1 2002

 

Q4 2003

 

Waltham, MA

 

1

 

308,599

 

$

69,093,883

 

$

85,000,000

 

$

—

 

$

—

 

$

15,906,117

 

43

%

Two Freedom Square (50% ownership)

 

Q3 2002

 

Q2 2003

 

Reston, VA

 

1

 

422,930

 

41,903,121

 

49,336,000

(2)

45,000,000

(2)

35,323,051

 

—

 

100

%

Shaws Supermarket

 

Q2 2003

 

Q2 2003

 

Boston, MA

 

1

 

57,235

 

22,833,840

 

24,034,000

 

—

 

—

 

1,200,160

 

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Developments Placed in Service

 

 

 

 

 

 

 

3

 

788,764

 

$

133,830,844

 

$

158,370,000

 

$

45,000,000

 

$

35,323,051

 

$

17,106,277

 

78

%

 

(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

 

51

 

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of June 30, 2003

 

Location

 

No. of
Parcels

 

Acreage

 

Developable
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

 

 

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of June 30, 2003

 

Location

 

No. of
Parcels

 

Acreage

 

Developable
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

 

 

(1)               $20.00 per developable square foot plus an earnout calculation

(2)               Subject to ground lease.

(3)               Prior to January 23, 2004, the cost will be $28.32/SF of land area.  Land area is approximately 108,000 SF.

 

52

 

Definitions

 

This section contains a brief explanation of certain non-GAAP financial measures we provide in other sections of this document, and a statement of the reasons why management believes these measures provide useful information to investors about the company’s financial condition or results of operations.  Additional detail can be found in the company’s most recent annual report on Form 10-K and other documents filed with the SEC from time to time.

 

Funds from Operations:

 

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) (computed in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies.

 

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. In addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after specific supplemental adjustments, including net derivative losses and early surrender lease adjustments. Although our FFO as adjusted clearly differs from NAREIT's definition of FFO, as well as that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

 

Funds Available for Distribution (FAD)

 

In addition to FFO, we present Funds Available for Distribution (FAD) by (1) adding to FFO non-real estate depreciation, (2) eliminating the effect of straight-line rent, and (3) subtracting: recurring capital expenditures; hotel improvements, equipment upgrades and replacements; and second generation tenant improvement and leasing commissions.  In addition, this calculation includes all non-cash compensation expense related to restricted securities.  Although our FAD as adjusted differs from that of other real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners.  In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flows in accordance with GAAP, as presented in our consolidated financial statements.  Our computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), as a measure of our liquidity.

 

Debt to Total Market Capitalization Ratio

 

Debt to total market capitalization ratio, defined as total consolidated debt as a percentage of the market value of our outstanding equity securities plus our total consolidated debt, is a measure of leverage commonly used by analysts in the REIT sector.  Total market capitalization is the sum of our total indebtedness outstanding on a consolidated basis (excluding unconsolidated joint venture debt) and the market value of our outstanding equity securities calculated using the closing stock price per share of common stock of the company multiplied by the sum of (i) the actual aggregate number of outstanding common partnership units of our operating partnership (including common partnership units held by the company) and (ii) the number of common partnership units issuable upon conversion of preferred partnership units of our operating partnership.  We are presenting this ratio because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes.  Investors should understand that our debt to market capitalization ratio is in part a function of the market price of the common stock of Boston Properties, Inc., and as such will fluctuate with changes in such price and does not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations.  However, for a company like ours, whose assets are primarily income-producing real estate, the debt to total market capitalization ratio may provide investors with an alternate indication of leverage, so long as it is evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness.

 

If you would like to receive this document in a different electronic format, please call investor relations at 617-236-3322.

 

53

Exhibit 99.2

 

 

 

 

 

Boston Properties, Inc.

 

111 Huntington Avenue

 

Boston, MA 02199

 

(NYSE: BXP)

 

AT THE COMPANY

AT FRB/WEBER SHANDWICK

Kathleen DiChiara

Marilynn Meek - General Info. (212) 445-8431

Investor Relations

Suzie Pileggi – Media (212) 445-8170

(617) 236-3300

 

 

 

FOR IMMEDIATE RELEASE:

 

July 22, 2003

 

 

BOSTON PROPERTIES, INC. ANNOUNCES

SECOND QUARTER 2003 RESULTS

 

Reports diluted FFO per share of $1.03                                                            Reports diluted EPS of $0.64

 

BOSTON, MA, July 22, 2003 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, today reported results for the second quarter ended June 30, 2003.

 

Funds from Operations (FFO) for the quarter ended June 30, 2003 were $103.4 million, or $1.07 per share basic and $1.03 per share diluted before an accounting charge related to the application of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities”.  This compares to FFO of $98.2 million, or $1.07 per share basic and $1.02 per share diluted for the quarter ended June 30, 2002.  The weighted average number of basic and diluted shares outstanding totaled 96,530,769 and 107,408,373, respectively, for the quarter ended June 30, 2003 and 91,357,121 and 105,982,092, respectively, for the same quarter last year.

 

Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2003 was $0.66 basic and $0.64 on a diluted basis. This compares to EPS for the second quarter of 2002 of $0.60 basic and $0.59 on a diluted basis.

 

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 June 30, 2003.  In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

 

As of June 30, 2003, the Company’s portfolio consisted of 139 properties comprising more than 42.9 million square feet, including three properties under construction totaling 2.0 million square feet.  The overall percentage of leased space for the properties in service as of June 30, 2003 was 92.8%.

 

As previously reported, the Company’s stockholders elected at its May 2003 Annual Meeting of Stockholders three new independent members to the Company’s Board of Directors.  The new directors are:

 

 

-more-

 

•                  Lawrence S. Bacow - President of and a Director for Tufts University.  He previously served as Chancellor of the Massachusetts Institute of Technology.

 

•                  William M. Daley - President of SBC Communications, Inc.  He served as United States Secretary of Commerce from January 1997 to July 2000 and as Chairman of the 2000 presidential election campaign of Vice President Al Gore.

 

•                  David A. Twardock - President and Chief Executive Officer of Prudential Mortgage Capital Company, LLC, the real estate affiliate of Prudential Financial, Inc.

 

Significant events of the second quarter include:

 

•                  The increase in the quarterly dividend paid to holders of the Company's Common Stock from $0.61 per share to $0.63 per share. This represents a 3.3% increase.

 

•                  The Company used the net proceeds from its Operating Partnership’s March 18, 2003 $300.0 million offering of senior unsecured notes and a draw of approximately $105.8 million from its unsecured line of credit to:

 

•                  Refinance and pay down its mortgage loan secured by the Five Times Square property in New York City from $376.7 million to $75.4 million.

 

•                  Repay the Shaw’s Supermarket mortgage loan secured by the property at the Prudential Center in Boston, Massachusetts, totaling $21.5 million on April 1, 2003.

 

•                  Acquire the remaining 50% outside interest in its Discovery Square joint venture on April 1, 2003 for cash of $18.3 million and the assumption of the mortgage debt on the property of approximately $32.4 million.  Subsequent to the acquisition, the Company repaid in full the mortgage debt on the property totaling $64.7 million.

 

•                  The Company’s Operating Partnership closed on a private offering in reliance on Rule 144A on May 22, 2003 of $250.0 million senior unsecured notes due 2015, yielding 5.075%.  The Company used the net proceeds from the offering to:

 

•                  Repay the mortgage loan secured by the property at 2600 Tower Oaks Boulevard in Rockville, Maryland totaling $31.0 million on May 22, 2003.

 

•                  Repay in full the unsecured line of credit.

 

•                  The Company modified a $62.7 million mortgage loan bearing interest at 9.646% which is secured by the Reservoir Place property in Waltham Massachusetts.  In connection with the modification, the Company made a principal pay-down of $9.1 million and incurred an up-front $2.1 million prepayment fee on that amount which is being amortized over the term of the modified loan.  The modified mortgage loan

 

-more-

 

2

 

totaling $53.6 million bears interest at a fixed rate of 7.0% per annum and matures on July 1, 2009.

 

•                  The Company recognized a gain on sale of $3.4 million (net of minority interest share of $0.7 million) related to the transfer of a mortgage.

 

•                  The Company placed-in-service the following properties:

 

•                  Two Freedom Square - a 422,930 square foot joint venture Class-A office property in Reston, Virginia in which the Company has a 50% ownership interest. This project is 99% leased.

 

•                  Shaw’s Supermarket development project - a 57,235 square foot retail property at the Prudential Center in Boston, Massachusetts.  This project is 100% leased.

 

•                  The Company completed the public registration of its Operating Partnership with the Securities and Exchange Commission related to its issuance of unsecured senior notes.

 

•                  The Company’s Operating Partnership delivered a redemption notice for all of its Series One Preferred Units.  The Series One Preferred Units will be converted into common Operating Partnership units on August 12, 2003.

 

EPS and FFO Per Share Guidance:

 

The Company’s guidance for the third and fourth quarters of 2003 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below.  The reconciliation of Projected EPS to Projected FFO per share, as provided below, is consistent with the Company’s historical computations.

 

 

 

Third Quarter 2003

 

Fourth Quarter 2003

 

 

 

Low

-

High

 

Low

-

High

 

Projected EPS (diluted)

 

$

0.51

-

$

0.54

 

$

0.54

-

$

0.58

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected Company Share of Real Estate

 

$

0.45

-

$

0.43

 

$

0.45

-

$

0.43

 

Depreciation and Amortization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected Company Share of Net Derivatives

 

$

0.01

-

$

0.01

 

$

0.01

-

$

0.01

 

 

 

 

 

 

 

 

 

 

 

Less:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dilutive Impact of Preferred Securities

 

$

0.01

-

$

0.01

 

$

0.03

-

$

0.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected FFO per Share (diluted) before net derivatives

 

$

0.96

-

$

0.97

 

$

0.97

-

$

0.99

 

 

-more-

 

3

 

The foregoing estimates reflect management’s view of current and future market conditions, including certain assumptions with respect to rental rates and occupancy levels.  There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

 

Boston Properties will host a conference call tomorrow, July 23, 2003 at 10:00 AM (Eastern Time), open to the general public, to discuss the results of this year’s second quarter.  The number to call for this interactive teleconference is (800) 374-1372.  A replay of the conference call will be available through July 30, 2003 by dialing (800) 642-1687 and entering the passcode 1582716.  An audio-webcast will be archived and can be accessed at www.bostonproperties.com in the Investor section under the header Audio Archive. 

 

Additionally, a copy of Boston Properties’ second quarter 2003 “Supplemental Operating and Financial Data” and this press release are available in the Investor section of the Company’s website at 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, D.C. 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. The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the third and fourth quarters of 2003.

 

Financial tables follow.

 

###

 

4

 

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2003

 

2002

 

2003

 

2002

 

 

 

(unaudited and in thousands, except for per share amounts)

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

 

 

Rental:

 

 

 

 

 

 

 

 

 

Base rent

 

$

248,848

 

$

231,296

 

$

496,201

 

$

449,313

 

Recoveries from tenants

 

37,262

 

35,549

 

77,143

 

68,525

 

Parking and other

 

13,955

 

12,458

 

28,150

 

24,554

 

Total rental revenue

 

300,065

 

279,303

 

601,494

 

542,392

 

Hotel revenue

 

17,213

 

—

 

30,459

 

—

 

Development and management services

 

5,429

 

1,710

 

10,019

 

5,408

 

Interest and other

 

663

 

2,310

 

1,078

 

3,582

 

Total revenue

 

323,370

 

283,323

 

643,050

 

551,382

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

Operating

 

 

 

 

 

 

 

 

 

Rental

 

95,689

 

88,524

 

194,791

 

174,822

 

Hotel

 

12,258

 

—

 

23,429

 

—

 

General and administrative

 

11,028

 

13,564

 

22,427

 

24,633

 

Interest

 

75,447

 

64,366

 

149,092

 

125,181

 

Depreciation and amortization

 

50,742

 

42,336

 

100,566

 

83,886

 

Net derivative losses

 

991

 

4,826

 

1,923

 

5,129

 

Loss from early extinguishment of debt

 

—

 

—

 

1,474

 

—

 

Loss on investments in securities

 

—

 

—

 

—

 

4,297

 

Total expenses

 

246,155

 

213,616

 

493,702

 

417,948

 

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gain on sale of real estate and other assets, discontinued operations and preferred dividend

 

77,215

 

69,707

 

149,348

 

133,434

 

Minority interests in property partnerships

 

245

 

712

 

642

 

1,183

 

Income from unconsolidated joint ventures

 

1,353

 

1,659

 

4,011

 

3,341

 

Income before minority interest in Operating Partnership, gain on sale of real estate and other assets, discontinued operations and preferred dividend

 

78,813

 

72,078

 

154,001

 

137,958

 

Minority interest in Operating Partnership

 

(19,123

)

(18,867

)

(37,642

)

(36,685

)

Income before gain on sale of real estate and other assets, discontinued operations and preferred dividend

 

59,690

 

53,211

 

116,359

 

101,273

 

Gain on sale of real estate and other assets, net of minority interest

 

3,546

 

—

 

56,513

 

—

 

Income before discontinued operations and preferred dividend

 

63,236

 

53,211

 

172,872

 

101,273

 

Discontinued Operations:

 

 

 

 

 

 

 

 

 

Income from discontinued operations, net of minority interest

 

—

 

3,207

 

1,942

 

6,313

 

Gains on sales of real estate from discontinued operations, net of minority interest

 

—

 

—

 

73,611

 

5,840

 

Income before preferred dividend

 

63,236

 

56,418

 

248,425

 

113,426

 

Preferred dividend

 

—

 

(1,643

)

—

 

(3,286

)

Net income available to common shareholders

 

$

63,236

 

$

54,775

 

$

248,425

 

$

110,140

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share:

 

 

 

 

 

 

 

 

 

Income available to common shareholders before discontinued operations

 

$

0.66

 

$

0.56

 

$

1.80

 

$

1.08

 

Discontinued operations, net of minority interest

 

—

 

0.04

 

0.78

 

0.13

 

Net income available to common shareholders

 

$

0.66

 

$

0.60

 

$

2.58

 

$

1.21

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding

 

96,531

 

91,357

 

96,134

 

91,146

 

 

 

 

 

 

 

 

 

 

 

Diluted earnings per share:

 

 

 

 

 

 

 

 

 

Income available to common shareholders before discontinued operations

 

$

0.64

 

$

0.55

 

$

1.77

 

$

1.06

 

Discontinued operations, net of minority interest

 

—

 

0.04

 

0.78

 

0.13

 

Net income available to common shareholders

 

$

0.64

 

$

0.59

 

$

2.55

 

$

1.19

 

Weighted average number of common and common equivalent shares outstanding

 

98,213

 

93,016

 

97,454

 

92,897

 

 

5

 

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

June 30,
2003

 

December 31,
2002

 

 

 

(in thousands, except for share amounts)

 

 

 

(unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Real estate

 

$

7,863,035

 

$

7,781,684

 

Development in progress

 

445,003

 

448,576

 

Land held for future development

 

218,045

 

215,866

 

Real estate held for sale, net

 

—

 

224,585

 

Less: accumulated depreciation

 

(893,246

)

(822,933

)

Total real estate

 

7,632,837

 

7,847,778

 

 

 

 

 

 

 

Cash and cash equivalents

 

158,587

 

55,275

 

Cash held in escrows

 

18,187

 

41,906

 

Tenant and other receivables, net

 

21,185

 

20,458

 

Accrued rental income, net

 

160,586

 

165,321

 

Deferred charges, net

 

168,833

 

176,545

 

Prepaid expenses and other assets

 

22,090

 

18,015

 

Investments in unconsolidated joint ventures

 

93,904

 

101,905

 

Total assets

 

$

8,276,209

 

$

8,427,203

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

Mortgage notes payable

 

$

3,349,134

 

$

4,267,119

 

Unsecured senior notes, net of discount

 

1,470,148

 

747,375

 

Unsecured bridge loan

 

—

 

105,683

 

Unsecured line of credit

 

—

 

27,043

 

Accounts payable and accrued expenses

 

49,299

 

73,846

 

Dividends and distributions payable

 

84,030

 

81,226

 

Interest rate contracts

 

12,677

 

14,514

 

Accrued interest payable

 

56,088

 

25,141

 

Other liabilities

 

63,771

 

81,085

 

Total liabilities

 

5,085,147

 

5,423,032

 

 

 

 

 

 

 

Commitments and contingencies

 

—

 

—

 

Minority interests

 

857,058

 

844,581

 

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, 97,107,811 and 95,441,890 shares issued and 97,028,911 and 95,362,990 shares outstanding in 2003 and 2002, respectively

 

970

 

954

 

Additional paid-in capital

 

2,032,952

 

1,982,689

 

Earnings in excess of dividends

 

327,222

 

198,586

 

Treasury common stock, at cost

 

(2,722

)

(2,722

)

Unearned compensation

 

(7,734

)

(2,899

)

Accumulated other comprehensive loss

 

(16,684

)

(17,018

)

Total stockholders’ equity

 

2,334,004

 

2,159,590

 

Total liabilities and stockholders’ equity

 

$

8,276,209

 

$

8,427,203

 

 

6

 

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

 

 

 

Three months ended
June 30,

 

Six months ended
June 30,

 

 

 

2003

 

2002

 

2003

 

2002

 

 

 

(in thousands, except for per share amounts)

 

 

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gain on sale of real estate and other assets, discontinued operations and preferred dividend

 

$

77,215

 

$

69,707

 

$

149,348

 

$

133,434

 

 

 

 

 

 

 

 

 

 

 

Add:

 

 

 

 

 

 

 

 

 

Real estate depreciation and amortization

 

52,338

 

45,032

 

104,129

 

89,531

 

Income from discontinued operations

 

—

 

3,929

 

2,355

 

7,730

 

Income from unconsolidated joint ventures

 

1,353

 

1,659

 

4,011

 

3,341

 

Loss from early extinguishment of debt associated with the sale of 2300 N Street

 

—

 

—

 

1,474

 

—

 

Less:

 

 

 

 

 

 

 

 

 

Minority interests in property partnerships’ share of funds from operations

 

(842

)

(593

)

(1,708

)

(1,312

)

Preferred dividends and distributions

 

(5,852

)

(8,223

)

(11,623

)

(16,623

)

 

 

 

 

 

 

 

 

 

 

Funds from operations

 

124,212

 

111,511

 

247,986

 

216,101

 

 

 

 

 

 

 

 

 

 

 

Add (subtract):

 

 

 

 

 

 

 

 

 

Net derivative losses (SFAS No. 133)

 

991

 

4,826

 

1,923

 

5,129

 

Early surrender lease adjustment (2)

 

—

 

3,926

 

—

 

7,853

 

Funds from operations before net derivative losses (SFAS No. 133) and after early surrender lease adjustment

 

$

125,203

 

$

120,263

 

$

249,909

 

$

229,083

 

 

 

 

 

 

 

 

 

 

 

Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease adjustment

 

$

103,360

 

$

98,165

 

$

206,096

 

$

187,094

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - basic

 

96,531

 

91,357

 

96,134

 

91,146

 

FFO per share basic before net derivative losses (SFAS No. 133) and after early surrender adjustment

 

$

1.07

 

$

1.07

 

$

2.14

 

$

2.05

 

FFO per share basic after net derivative losses (SFAS No. 133) and before early surrender lease adjustment

 

$

1.06

 

$

1.00

 

$

2.13

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - diluted

 

107,408

 

105,982

 

106,652

 

105,870

 

FFO per share diluted before net derivative losses (SFAS No. 133) and after early surrender lease adjustment

 

$

1.03

 

$

1.02

 

$

2.06

 

$

1.95

 

FFO per share diluted after net derivative losses (SFAS No. 133) and before early surrender lease adjustment

 

$

1.02

 

$

0.95

 

$

2.04

 

$

1.84

 

 

(1)             Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) (computed in accordance with accounting principles generally accepted in the United States of America (“GAAP”), including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies.

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. In addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after specific supplemental adjustments, including net derivative losses and early surrender lease adjustments. Although our FFO as adjusted clearly differs from NAREIT's definition of FFO, as well as that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

 

(2)             Represents cash received under contractual obligations.

 

7

 

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

 

 

 

% Leased by Location

 

 

 

June 30, 2003

 

December 31, 2002

 

Greater Boston

 

89.2

%

91.8

%

Greater Washington, D.C.

 

95.2

%

95.9

%

Midtown Manhattan

 

98.7

%

98.4

%

Baltimore, MD

 

98.5

%

97.6

%

Richmond, VA

 

91.4

%

91.8

%

Princeton/East Brunswick, NJ

 

94.8

%

93.3

%

Greater San Francisco

 

85.9

%

87.4

%

Bucks County, PA

 

100.0

%

100.0

%

Total Portfolio

 

92.8

%

93.9

%

 

 

 

% Leased by Type

 

 

 

June 30, 2003

 

December 31, 2002

 

Class A Office Portfolio

 

93.2

%

94.1

%

Office/Technical Portfolio

 

87.3

%

89.7

%

Industrial Portfolio

 

89.3

%

100.0

%

Total Portfolio

 

92.8

%

93.9

%

 

8