SEC Filing

Date: April 27, 2004

BOSTON PROPERTIES, INC.

/s/ Douglas T. Linde

Douglas T. Linde

Chief Financial Officer

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FORM 8-K

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):

April 27, 2004

Boston Properties, Inc.

(Exact name of Registrant as specified in its charter)


Delaware	1-13087	04-2473675
(State or other	(Commission	(I.R.S. employer
jurisdiction of incorporation)	File Number)	Identification No.)

111 Huntington Avenue

Boston, Massachusetts 02199

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code:

(617) 236-3300

ITEM 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 March 31, 2004.

99.2	Press release dated April 27, 2004.

ITEM 12.

Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K is furnished under Item 12—“Results of Operations and Financial Condition.” 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 April 27, 2004, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of 2004. 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.

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.

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2004

Boston Properties, Inc.

First Quarter 2004

Table of Contents


	Page		Page
Company Profile	3	Grand Total—Office, Office/Technical, Industrial and Retail Properties	27
Investor Information	4	Greater Boston Area Lease Expiration Roll Out	28-29
Research Coverage	5	Washington DC Area Lease Expiration Roll Out	30-31
Financial Highlights	6	San Francisco Area Lease Expiration Roll Out	32-33
Consolidated Balance Sheets	7	New York Area Lease Expiration Roll Out	34-35
Consolidated Income Statements	8	Princeton Area Lease Expiration Roll Out	36-37
Funds From Operations	9	Other Properties Lease Expiration Roll Out	38-39
Funds Available for Distribution and Ratios	10	CBD/Suburban Lease Expiration Roll Out	40-41
Capital Structure	11	Hotel Performance	42
Debt Analysis	12-14	Occupancy Analysis	43
Unconsolidated Joint Ventures	15-16	Same Property Performance	44
Portfolio Overview-Square Footage	17	Reconciliation to Same Property Performance and Net Income	45-46
In-Service Property Listing	18-21	Leasing Activity	47
Top 20 Tenants and Tenant Diversification	22	Capital Expenditures, Tenant Improvements and Leasing Commissions	48
Office Properties—Lease Expiration Roll Out	23	Acquisitions/Dispositions	49
Office/Technical Properties—Lease Expiration Roll Out	24	Value Creation Pipeline—Construction in Progress	50
Industrial Properties—Lease Expiration Roll Out	25	Value Creation Pipeline—Land Parcels and Purchase Options	51
Retail Properties—Lease Expiration Roll Out	26	Definitions	52

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “guidance,” “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. 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, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Boston Properties, Inc.

First Quarter 2004

COMPANY PROFILE

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, responsiveness to tenants’ needs and development capabilities.

The Boston Properties Management Team is among the most distinguished in the REIT industry. This deep and talented team of twenty-eight individuals average twenty-five years of real estate experience and fifteen years with Boston Properties. Chairman Mortimer Zuckerman is nationally known, 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.

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its stockholders with the greatest possible total return. The Company’s targeted markets are characterized by high barriers to the creation of new supply and strong real estate fundamentals where tenants have demonstrated a preference for high-quality office buildings and other facilities. Boston Properties’ business strategy includes selectively acquiring assets which increase its penetration in the markets in which it has chosen to concentrate while exploring the sale of properties to take advantage of its value creation and the demand for its premier properties, which often results in high sale prices. The Company continues to enhance its balanced capital structure through its access to a variety of sources of capital. Additionally, Boston Properties is an investment grade rated company maintaining current senior unsecured debt ratings of BBB from Standard & Poor’s, Baa2 from Moody’s Investors Service and BBB from Fitch Ratings.

Boston Properties, Inc.

First Quarter 2004

INVESTOR INFORMATION


Board of Directors		Management
Mortimer B. Zuckerman Chairman of the Board	Alan J. Patricof Director	Robert E. Burke Executive Vice President for Operations	E. Mitchell Norville Senior Vice President, Manager of DC Office

Edward H. Linde	Richard E. Salomon
President and Chief Executive Officer	Director	Raymond A. Ritchey Executive Vice President,	Robert E. Pester Senior Vice President,
Director		National Director of Acquisitions & Development	Manager of San Francisco Office

Lawrence S. Bacow	Martin Turchin
Director	Director	Douglas T. Linde	Mitchell S. Landis
		Senior Vice President, Chief Financial Officer and Treasurer	Senior Vice President, Manager of Princeton Office

William M. Daley	David A. Twardock
Director	Director
		Bryan J. Koop	Frank D. Burt
Alan B. Landis		Senior Vice President, Manager of Boston Office	Senior Vice President, General Counsel
Director

		Robert E. Selsam	Arthur S. Flashman
		Senior Vice President, Manager of New York Office	Vice President and Controller
Company Information
Corporate Headquarters	Trading Symbol	Investor Relations	Inquires
111 Huntington Avenue Suite 300 Boston, MA 02199 (t) 617.236.3300 (f) 617.236.3311	BXP Stock Exchange Listing New York Stock Exchange	Boston Properties, Inc. 111 Huntington Avenue, Suite 300 Boston, MA 02199 (t) 617.236.3322 (f) 617.236.3311	Financial inquiries should be directed to Michael Walsh, Vice President, Finance, at 617.236.3410 or mwalsh@bostonproperties.com
		investor_relations@boston properties.com www.bostonproperties.com	Investor or media inquires should be directed to Kathleen DiChiara, Investor Relations Manager, at 617.236.3343 or kdichiara@bostonproperties. com

Common Stock Data (NYSE: BXP)

Boston Properties’ common stock has had the following characteristics (based on information reported by the New York Stock Exchange):


	Q1 2004			Q4 2003			Q3 2003			Q2 2003			Q1 2003
High Price	$	54.89		$	48.34		$	45.50		$	44.51		$	39.29
Low Price	$	46.95		$	43.55		$	41.55		$	38.65		$	34.99
Average Price	$	51.06		$	46.02		$	43.35		$	41.36		$	36.58
Closing Price, at the end of the quarter	$	54.31		$	48.19		$	43.47		$	43.80		$	37.90
Dividends per share—annualized (1)	$	2.52		$	2.52		$	2.52		$	2.52		$	2.44
Closing dividend yield—annualized		4.64	%		5.23	%		5.80	%		5.75	%		6.44	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		135,582			127,683			127,037			126,605			125,597
Closing market value of shares and units outstanding (thousands)	$	7,363,458		$	6,153,044		$	5,522,298		$	5,545,299		$	4,760,126

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

Timing

Quarterly results for 2004 will be announced according to the following anticipated schedule:



Second Quarter		Late July
Third Quarter		Late October
Fourth Quarter		Late January

Boston Properties, Inc.

First Quarter 2004

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage
David Aubuchon	Francis Greywitt	Chris Brown	Mark Streeter
A.G. Edwards & Sons, Inc.	KeyBanc Capital Markets	Banc of America Securities, LLC	J.P. Morgan Securities, Inc.
314.955.5452	216.443.4795	704.386.2524	212.834.5086

Lee Schalop /Daniel Oppenheim	David Shulman	Susan Berliner / Dan Mooney	John Forrey
Banc of America Securities LLC	Lehman Brothers	Bear Stearns & Company, Inc.	Merrill Lynch & Co., Inc.
212.847.5677 / 212.847.5733	212.526.3413	212.272.3824 / 212.272.0217	212.449.1812

Ross Smotrich / Michael Marron	Steve Sakwa / Brian Legg	Erich Marriott	Thomas Cook
Bear Stearns & Company, Inc.	Merill Lynch & Company, Inc.	BNP Paribas Securities Corp (NA)	Smith Barney Citigroup
212.272.8046 / 212.272.7424	212.449.0335 / 212.449.1153	212.841.3186	212.723.1112

Louis Taylor /Christoper Capolongo	Gregory Whyte / David Cohen	Thierry Perrein
Deutsche Bank Securities, Inc.	Morgan Stanley & Company, Inc.	Credit Suisse First Boston, Inc.
212.250.4912 / 212.250.7726	212.761.6331 / 212.761.8564	212.538.8618

David Loeb / Gustavo Sarago	James Sullivan / James Feldman	Scott O’Shea
Friedman, Billings, Ramsey &Co., Inc.	Prudential Equity Group, Inc. 212.778.2515 / 212.778.1724	Deutsche Bank Securities, Inc. 212.250.7190
703.469.1289 / 703.469.1042

		Rating Agencies:

Carey Callaghan /Allison Widman	Jay Leupp / David Copp	William Travers
Goldman Sachs & Company	RBC Capital Markets (US)	Fitch Ratings
212.902.4351 / 212.902.2796	415.633.8588 / 415.633.8558	212.908.0304

Jim Sullivan / Liz Dhillon	Jonathan Litt / Gary Boston	Karen Nickerson
Green Street Advisors, Inc.	Smith Barney Citigroup	Moody’s Investors Service
949.640.8780	212.816.0231 / 212.816.1383	212.553.4924

Anthony Paolone /Michael Mueller	Keith Mills / John Kim	James Fielding
J.P. Morgan Securities, Inc.	UBS Securities, LLC	Standard & Poor’s
212.622.6682 / 212.622.6689	212.713.3098 / 212.713.9721	212.438.2452

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company or are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties’ performance made by the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

Boston Properties, Inc.

First Quarter 2004

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 and results of operations can be found on page 52.


	Three Months Ended
	March 31, 2004			December 31,2003			September 30, 2003			June 30, 2003			March 31, 2003
Income Items:
Revenue	$	333,654		$	334,361		$	328,539		$	321,254		$	317,398
Straight line rent (SFAS 13)	$	11,620		$	14,536		$	12,144		$	10,687		$	10,866
Fair value lease revenue (SFAS 141) (1)	$	(83	)	$	(53	)	$	(577	)	$	(167	)	$	—
Lease termination fees (included in revenues)	$	1,558		$	1,401		$	1,735		$	1,419		$	1,761
Capitalized interest	$	4,831		$	5,192		$	4,954		$	4,601		$	4,453
Capitalized wages	$	1,357		$	1,209		$	1,288		$	1,325		$	1,172
Operating Margins [(rental revenue—rental expenses)/rental revenue] (2)		69.6	%		69.5	%		67.1	%		70.1	%		68.3	%
Net income available to common shareholders	$	66,048		$	60,592		$	56,970		$	63,236		$	185,045
Funds from operations (FFO) available to common shareholders before
net derivative gains/losses (3)	$	103,831		$	106,931		$	99,057		$	103,360		$	102,735
FFO per share before net derivative gains/losses—diluted (3)	$	0.99		$	1.05		$	0.98		$	1.03		$	1.03
Net income available to common shareholders per share—basic	$	0.65		$	0.62		$	0.59		$	0.66		$	1.93
Net income available to common shareholders per share—diluted	$	0.64		$	0.61		$	0.57		$	0.64		$	1.91
Dividends per share	$	0.63		$	0.63		$	0.63		$	0.63		$	0.61
Funds available for distribution (FAD) (4)	$	98,340		$	85,742		$	101,079		$	104,324		$	108,395

Ratios:
Interest Coverage Ratio (excluding capitalized interest)—cash basis (5)		2.64			2.65			2.55			2.64			2.65
Interest Coverage Ratio (including capitalized interest)—cash basis (5)		2.48			2.48			2.39			2.48			2.50
FFO Payout Ratio (6)		63.64	%		60.00	%		64.29	%		61.17	%		59.22	%
FAD Payout Ratio (7)		82.32	%		88.61	%		74.16	%		70.90	%		65.50	%

	March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003			March 31, 2003
Capitalization:
Total Debt	$	4,910,761		$	5,004,720		$	4,920,343		$	4,819,282		$	4,980,113
Price @ Quarter End	$	54.31		$	48.19		$	43.47		$	43.80		$	37.90
Equity Value @ Quarter End	$	7,363,458		$	6,153,044		$	5,522,298		$	5,545,299		$	4,760,126
Total Market Capitalization (8)	$	12,274,219		$	11,157,764		$	10,442,641		$	10,364,581		$	9,740,239
Debt/Total Market Capitalization (8)		40.01	%		44.85	%		47.12	%		46.50	%		51.13	%

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

(2)

Rental Expenses include operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $6,370, $6,620, $8,742, $6,459 and $5,391 for the three months ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

(3)	For a quantitative reconciliation of the differences between FFO before net derivative gains/losses and net income available to common shareholders, see page 9.

(4)	For a quantitative reconciliation of the differences between FAD and FFO before net derivative gains/losses, see page 10.

(5)	For additional detail, see page 10.

(6)	Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FFO per share before net derivative gains/losses- diluted.

(7)	Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FAD.

(8)	For additional detail, see page 52.

Boston Properties, Inc.

First Quarter 2004

CONSOLIDATED BALANCE SHEETS

(in thousands)


	March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003			March 31, 2003
ASSETS	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
Real estate	$	8,272,848		$	8,202,958		$	8,060,525		$	7,863,035		$	7,745,475
Development in progress		579,751			542,600			481,571			445,003			418,798
Land held for future development		228,361			232,098			232,361			218,045			216,537
Real estate held for sale		42,449			5,604			—			—			—
Less accumulated depreciation		(1,047,911	)		(1,001,435	)		(952,754	)		(893,246	)		(846,002	)

Total real estate		8,075,498			7,981,825			7,821,703			7,632,837			7,534,808
Cash and cash equivalents		182,151			22,686			37,621			158,587			384,418
Escrows		25,666			21,321			27,992			18,187			20,804
Tenant and other receivables, net		14,962			18,425			21,813			21,185			23,193
Accrued rental income, net		202,604			189,852			175,063			160,586			148,034
Deferred charges, net		196,598			188,855			178,819			168,833			165,559
Prepaid expenses and other assets		56,001			39,350			57,012			22,090			30,144
Investments in unconsolidated joint ventures		83,555			88,786			88,632			93,904			101,794

Total assets	$	8,837,035		$	8,551,100		$	8,408,655		$	8,276,209		$	8,408,754

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,440,351		$	3,471,400		$	3,450,112		$	3,349,134		$	3,758,406
Unsecured senior notes, net of discount		1,470,410			1,470,320			1,470,231			1,470,148			1,221,707
Unsecured line of credit		—			63,000			—			—			—
Accounts payable and accrued expenses		110,002			92,026			69,940			49,299			63,319
Dividends and distributions payable		89,166			84,569			83,972			84,030			81,128
Interest rate contracts		6,417			8,191			9,875			12,677			13,663
Accrued interest payable		41,984			50,931			44,010			56,088			37,534
Other liabilities		79,390			80,367			69,242			63,771			63,992

Total liabilities		5,237,720			5,320,804			5,197,382			5,085,147			5,239,749

Commitments and contingencies		—			—			—			—			—

Minority interests		851,901			830,133			829,779			857,058			860,182

Stockholders' Equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 106,442,998, 98,230,177, 97,577,665, 97,028,911 and 95,928,738 outstanding, respectively		1,064			982			976			970			959
Additional paid-in capital		2,453,215			2,104,158			2,084,490			2,032,952			2,010,764
Earnings in excess of dividends		319,890			320,900			322,530			327,222			325,114
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(7,872	)		(6,820	)		(7,271	)		(7,734	)		(8,448	)
Accumulated other comprehensive loss		(16,161	)		(16,335	)		(16,509	)		(16,684	)		(16,844	)

Total stockholders’ equity		2,747,414			2,400,163			2,381,494			2,334,004			2,308,823

Total liabilities and stockholders’ equity	$	8,837,035		$	8,551,100		$	8,408,655		$	8,276,209		$	8,408,754

Boston Properties, Inc.

First Quarter 2004

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	31-Mar-04			31-Dec-03			30-Sep-03			30-Jun-03			31-Mar-03
Revenue:
Rental
Base Rent	$	255,590		$	256,688		$	251,717		$	246,994		$	245,473
Recoveries from tenants		40,834			37,962			41,331			37,006			39,479
Parking and other		13,198			12,213			13,244			13,949			14,195

Total rental revenue		309,622			306,863			306,292			297,949			299,147
Hotel revenues		13,178			22,082			17,542			17,213			13,246
Development and management services		3,326			4,550			3,616			5,429			4,590
Interest and other (1)		7,528			866			1,089			663			415

Total revenue		333,654			334,361			328,539			321,254			317,398

Expenses:
Operating		61,139			58,513			65,999			57,484			60,663
Real estate taxes		39,893			39,977			40,273			37,643			37,734
Hotel operating		11,678			15,992			12,829			12,258			11,171
General and administrative		12,600			11,749			11,183			11,028			11,399
Interest (2)		74,305			75,001			75,343			75,447			73,645
Depreciation and amortization		56,477			55,912			53,072			50,356			49,472
Net derivative (gains)/losses		—			—			(885	)		991			932
Loss from early extinguishment of debt		6,258			—			—			—			1,474

Total expenses		262,350			257,144			257,814			245,207			246,490

Income before minority interests and income from unconsolidated joint ventures		71,304			77,217			70,725			76,047			70,908
Minority interest in property partnerships		328			313			593			270			428
Income from unconsolidated joint ventures		1,377			662			1,343			1,353			2,658

Income before minority interest in Operating Partnership		73,009			78,192			72,661			77,670			73,994
Minority interest in Operating Partnership (3)		(17,248	)		(18,689	)		(17,921	)		(18,924	)		(18,313	)

Income before gains on sales of real estate and other assets		55,761			59,503			54,740			58,746			55,681
Gains on sales of real estate and other assets, net of minority interest		6,698			—			1,341			3,546			52,912

Income before discontinued operations		62,459			59,503			56,081			62,292			108,593
Income from discontinued operations, net of minority interest		1,068			1,089			889			944			2,924
Gains on sales of real estate from discontinued operations, net of minority interest		2,521			—			—			—			73,528

Net income available to common shareholders	$	66,048		$	60,592		$	56,970		$	63,236		$	185,045

INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share—basic	$	0.65		$	0.62		$	0.59		$	0.66		$	1.93

Net income available to common shareholders per share—diluted	$	0.64		$	0.61		$	0.57		$	0.64		$	1.91

(1)	Includes approximately $7.0 million related to the termination of an agreement to enter into a ground lease in the three months ended March 31, 2004.

(2)	Interest expense is reported net of capitalized interest of $4,831, $5,192, $4,954, $4,601 and $4,453 for the three months ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

(3)

Equals minority interest share of 17.96%, 18.59%, 18.08%, 17.45% and 17.62% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

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

Boston Properties, Inc.

First Quarter 2004

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	31-Mar-04		31-Dec-03		30-Sep-03			30-Jun-03		31-Mar-03
Net income available to common shareholders	$	66,048	$	60,592	$	56,970		$	63,236	$	185,045
Add:
Minority interest in Operating Partnership		17,248		18,689		17,921			18,924		18,313
Less:
Minority interest in property partnerships		328		313		593			270		428
Income from unconsolidated joint ventures		1,377		662		1,343			1,353		2,658
Gain on sales of real estate and other assets, net of minority interest		6,698		—		1,341			3,546		52,912
Income from discontinued operations, net of minority interest		1,068		1,089		889			944		2,924
Gain on sales of real estate from discontinued operations, net of minority interest		2,521		—		—			—		73,528

Income before minority interests and income from unconsolidated joint ventures		71,304		77,217		70,725			76,047		70,908
Add:
Real estate depreciation and amortization (1)		57,873		57,500		54,606			52,338		51,791
Income from discontinued operations		1,302		1,359		1,115			1,168		3,580
Income from unconsolidated joint ventures		1,377		662		1,343			1,353		2,658
Loss from early extinguishment of debt associated with the sale of properties		—		—		—			—		1,474
Less:
Minority property partnership’s share of funds from operations		904		945		805			842		866
Preferred dividends and distributions		4,385		4,443		5,183			5,852		5,771

Funds from operations (FFO)		126,567		131,350		121,801			124,212		123,774
Add (subtract):
Net derivative gains/losses		—		—		(885	)		991		932

FFO before net derivative gains/losses	$	126,567	$	131,350	$	120,916		$	125,203	$	124,706

FFO available to common shareholders before net derivative gains/losses (2)	$	103,831	$	106,931	$	99,057		$	103,360	$	102,735

FFO per share before net derivative gains/losses—basic	$	1.03	$	1.09	$	1.02		$	1.07	$	1.07

Weighted average shares outstanding—basic		100,890		97,945		97,360			96,531		95,733

FFO per share before net derivative gains/losses—diluted	$	0.99	$	1.05	$	0.98		$	1.03	$	1.03

FFO per share after net derivative gains/losses—diluted	$	0.99	$	1.05	$	0.99		$	1.02	$	1.02

Weighted average shares outstanding—diluted		110,577		107,188		107,231			107,408		105,955

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003			March 31, 2003
	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)
Basic FFO before net derivative gains/losses	$	126,567	122,983	$	131,350	120,312	$	120,916	118,846	$	125,203	116,931	$	124,706	116,207
Effect of Dilutive Securities
Convertible Preferred Units		4,385	7,087		4,443	7,087		5,183	8,047		5,852	9,195		5,771	9,199
Stock Options and other		—	2,599		—	2,155		—	1,823		—	1,682		—	1,022

Diluted FFO before net derivative gains/losses	$	130,952	132,669	$	135,793	129,554	$	126,099	128,716	$	131,055	127,808	$	130,477	126,428

Company’s share of diluted FFO before net derivative gains/losses (3)	$	109,146	110,577	$	112,349	107,188	$	105,051	107,231	$	110,137	107,408	$	109,348	105,955

FFO per share before net derivative gains/losses—basic	$	1.03		$	1.09		$	1.02		$	1.07		$	1.07

FFO per share before net derivative gains/losses—diluted	$	0.99		$	1.05		$	0.98		$	1.03		$	1.03

(1)

Real estate depreciation includes the Company’s share of joint venture real estate depreciation of $1,697, $1,874, $1,821, $2,266 and $2,514 less corporate related depreciation of $617, $703, $670, $670 and $674 for the three months ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

(2)	Based on weighted average shares for the quarter. Company’s share for the quarter ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003 was 82.04%, 81.41%, 81.92%, 82.55% and 82.38%, respectively.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003 was 83.35%, 82.74%, 83.31%, 84.04% and 83.81%, respectively.

Boston Properties, Inc.

First Quarter 2004

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003			March 31, 2003
Funds from operations (FFO) before net derivative gains/losses (see page 9)	$	126,567		$	131,350		$	120,916		$	125,203		$	124,706
Add: Non real estate depreciation		617			703			670			670			674
Fair value lease revenue (SFAS 141)		83			53			577			167			—
Stock-based compensation		1,279			451			434			713			433
Less: Straight-line rent		(11,620	)		(14,536	)		(12,144	)		(10,687	)		(10,866	)
Recurring capital expenditures		(3,211	)		(8,413	)		(3,415	)		(4,726	)		(1,960	)
Hotel improvements, equipment upgrades and replacements		(273	)		(676	)		(353	)		(911	)		(405	)
2nd generation tenant improvements and leasing commissions		(15,102	)		(23,190	)		(5,606	)		(6,105	)		(4,187	)

Funds available for distribution (FAD)	$	98,340		$	85,742		$	101,079		$	104,324		$	108,395

Interest Coverage Ratios

(in thousands, except for ratio amounts)


	Three Months Ended
	March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003			March 31, 2003
Excluding Capitalized Interest
Income before minority interests and income from unconsolidated joint ventures	$	71,304		$	77,217		$	70,725		$	76,047		$	70,908
Add:
Discontinued operations		1,302			1,359			1,115			1,168			3,580
Interest expense		74,305			75,001			75,343			75,447			73,645
Depreciation		56,477			55,912			53,072			50,356			49,472
Net derivative (gains)/losses		—			—			(885	)		991			932
Prepayment penalty		—			—			—			—			1,474
Income from unconsolidated joint ventures		1,377			662			1,343			1,353			2,658
Discontinued Operations—depreciation		316			417			383			386			479
Discontinued Operations—interest expense		—			—			—			—			296
Fair value lease revenue (SFAS 141)		83			53			577			167			—
Less:
Straight-line rent		(11,620	)		(14,536	)		(12,144	)		(10,687	)		(10,866	)

Subtotal		193,544			196,085			189,529			195,228			192,578
Divided by:
Interest expense (1)		73,305			73,975			74,214			74,077			72,352
Interest expense—discontinued operations		—			—			—			—			296

Total interest expense		73,305			73,975			74,214			74,077			72,648
Interest Coverage Ratio		2.64			2.65			2.55			2.64			2.65

Including Capitalized Interest
Income before minority interests and income from unconsolidated joint ventures	$	71,304		$	77,217		$	70,725		$	76,047		$	70,908
Add:
Discontinued operations		1,302			1,359			1,115			1,168			3,580
Interest expense		74,305			75,001			75,343			75,447			73,645
Depreciation		56,477			55,912			53,072			50,356			49,472
Net derivative (gains)/losses		—			—			(885	)		991			932
Prepayment penantly		—			—			—			—			1,474
Income from unconsolidated joint ventures		1,377			662			1,343			1,353			2,658
Discontinued Operations—depreciation		316			417			383			386			479
Discontinued Operations—interest expense		—			—			—			—			296
Fair value lease revenue (SFAS 141)		83			53			577			167			—
Less:
Straight-line rent		(11,620	)		(14,536	)		(12,144	)		(10,687	)		(10,866	)

Subtotal		193,544			196,085			189,529			195,228			192,578
Divided by:
Interest expense (1) (2)		78,136			79,167			79,168			78,678			76,805
Interest expense—discontinued operations		—			—			—			—			296

Total interest expense		78,136			79,167			79,168			78,678			77,101
Interest Coverage Ratio		2.48			2.48			2.39			2.48			2.50

(1)	Excludes amortization of financing costs of $1,000, $1,026, $1,129, $1,370 and $1,293 for the quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

(2)	Includes capitalized interest of $4,831, $5,192, $4,954, $4,601 and $4,453 for the quarters ended March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003, respectively.

Boston Properties, Inc.

First Quarter 2004

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal March 31, 2004
Mortgage Notes Payable	$	3,440,351
Unsecured Senior Notes, net of discount		1,470,410
Unsecured Line of Credit		—

Total Debt	$	4,910,761

BPLP Unsecured Senior Notes


Settlement Date		5/22/03		3/18/03		1/17/03		12/13/2002
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		06/01/2015		04/15/2015		01/15/2013		01/15/2013

Equity

(in thousands)


	Shares & Units Outstanding	Common Stock Equivalents		Equivalent (1)
Common Stock	106,443	106,443	(2)	$	5,780,919
Operating Partnership Units	22,052	22,052	(3)		1,197,644
Series Two Preferred Operating Partnership Units	5,401	7,087			384,895

Total Equity		135,582		$	7,363,458

Total Debt					4,910,761

Total Market Capitalization				$	12,274,219

(1)	Value based on March 31, 2004 closing price of $54.31 per share of common stock.

(2)	Includes 328 shares of restricted stock, of which 83 shares are vested as of March 31, 2004.

(3)	Includes 164 long-term incentive plan units, of which none are vested as of March 31, 2004.

Boston Properties, Inc.

First Quarter 2004

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2004			2005			2006			2007			2008			Thereafter			Total
Amount	$	36,035		$	326,451		$	305,301		$	545,485		$	972,295		$	2,725,194		$	4,910,761
Weighted Average Rate		7.10	%		6.33	%		6.28	%		3.59	%		6.80	%		6.62	%		6.28	%

Unsecured Debt

Unsecured Line of Credit—Matures January 17, 2006

(in thousands)

Facility

Outstanding

@ 3/31/04

Letters of

Credit

Remaining

Capacity @ 3/31/04

$605,000

$ —

$6,670

$598,330

Unsecured Senior Notes

(in thousands)

Face Amount

@ 3/31/04

Amount net of discount

@ 3/31/04

$1,475,000

$1,470,410

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.94	%	5.95	%	9.7	years
Secured Debt	70.06	%	6.43	%	5.0	years

Total Debt	100.00	%	6.28	%	6.4	years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	8.35	%	2.10	%	2.7	years
Fixed Rate Debt	91.65	%	6.67	%	6.7	years

Total Debt	100.00	%	6.28	%	6.4	years

Boston Properties, Inc.

First Quarter 2004

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 meanings of which are 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 March 31, 2004 to show that the Company’s operating partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt securities. 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.


		March 31, 2004
Total Assets:
Capitalized Property Value		$	10,562,392
Cash and Cash Equivalents			182,151
Undeveloped Land, at Cost			228,361
Development in Process, at Cost (including Joint Venture %)			605,587

Total Assets		$	11,578,491

Unencumbered Assets		$	4,885,449

Secured Debt (Fixed and Variable) (1)		$	3,422,490
Joint Venture Debt			149,798
Contingent Liabilities & Letters of Credit			18,911
Unsecured Debt (2)			1,475,000

Total Outstanding Debt		$	5,066,199

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)		$	71,304
Add: Interest Expense (per Consolidated Income Statement)			74,305
Add: Depreciation and Amortization (per Consolidated Income Statement)			56,477
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)			6,258
Less: Non-recurring termination income (included in interest and other on the Consolidated Income Statement)			(6,963	)

EBITDA			201,381
Add: Company share of unconsolidated joint venture EBITDA			5,637

Consolidated EBITDA		$	207,018

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)		$	74,305
Add: Company share of unconsolidated joint venture interest expense			2,705
Less: Amortization of financing costs			(1,000	)

Adjusted Interest Expense		$	76,010


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		43.8	%
Secured Debt/Total Assets	Less than 50%		30.9	%
Interest Coverage (Annualized Consolidated EBITDA to
Annualized Interest Expense)	Greater than 1.50x		2.72
Unencumbered Assets/ Unsecured Debt	Greater than 150%		331.2	%

Unencumbered Consolidated EBITDA		$	89,833

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			3.96

% of unencumbered Consolidated EBITDA to Consolidated EBITDA			43.4	%

# of unencumbered properties			74

(1)	Excludes Fair Value Adjustment of $17.9 million.

(2)	Excludes Debt Discount of $4.6 million.

Boston Properties, Inc.

First Quarter 2004

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2004			2005			2006			2007			2008			Thereafter			Total
Citigroup Center	$	4,684		$	6,651		$	7,145		$	7,676		$	8,246		$	475,007		$	509,409
Times Square Tower		—			—			—			360,526	⁽¹⁾		—			—			360,526
Embarcadero Center One, Two and Federal Reserve		3,636			5,141			5,496			5,877			278,912			—			299,062
Prudential Center		3,451			4,919			5,256			5,619			259,705			—			278,950
280 Park Avenue		2,288			3,261			3,519			3,798			4,099			244,695			261,660
599 Lexington Avenue		—			225,000			—			—			—			—			225,000
Embarcadero Center Four		2,668			3,797			4,061			4,346			129,712			—			144,584
Embarcadero Center Three		1,777			2,506			2,671			132,726			—			—			139,680
Riverfront Plaza		2,196			3,104			3,314			3,540			95,327			—			107,481
Democracy Center		1,483			2,103			2,257			2,421			2,597			91,132			101,993
Embarcadero Center West Tower		1,170			1,649			90,415			—			—			—			93,234
100 East Pratt Street		1,485			2,100			2,246			2,401			78,110			—			86,342
One Freedom Square		1,353			1,896			2,005			2,122			2,245			73,641			83,262
601 and 651 Gateway Boulevard		—			—			81,171			—			—			—			81,171
140 Kendrick Street		939			1,313			1,387			1,466			1,549			55,486			62,140
202, 206 & 214 Carnegie Center		501			719			780			845			916			57,300			61,061
New Dominion Technology Park, Building One		46			655			1,283			1,379			1,481			52,558			57,402
Reservoir Place		925			1,395			1,478			1,565			1,660			48,689			55,712
Capital Gallery		1,064			1,524			50,651			—			—			—			53,239
New Dominion Technology Park, Building Two		—			49,534			—			—			—			—			49,534
504, 506 & 508 Carnegie Center		785			1,136			1,221			1,314			40,915			—			45,371
10 & 20 Burlington Mall Rd & 91 Hartwell		464			741			795			855			919			34,670			38,444
10 Cambridge Center		460			659			715			777			844			30,592			34,047
Sumner Square		393			557			599			645			694			26,242			29,130
1301 New York Avenue		994			1,417			1,531			1,651			1,781			21,629			29,003
Eight Cambridge Center		422			601			649			702			757			23,729			26,860
510 Carnegie Center		443			635			683			735			23,519			—			26,015
University Place		531			752			806			864			925			19,414			23,292
Reston Corporate Center		462			654			698			745			20,523			—			23,082
Bedford Business Park		523			751			818			890			16,859			—			19,841
191 Spring Street		477			686			18,267			—			—			—			19,430
101 Carnegie Center		284			406			6,622			—			—			—			7,312
Montvale Center		131			189			6,762			—			—			—			7,082

		36,035			326,451			305,301			545,485			972,295			1,254,784			3,440,351

Unsecured Senior Notes		—			—			—			—			—			1,470,410			1,470,410
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	36,035		$	326,451		$	305,301		$	545,485		$	972,295		$	2,725,194		$	4,910,761

% of Total Debt		0.73	%		6.65	%		6.22	%		11.11	%		19.80	%		55.49	%		100.00	%

(1) Includes period through extension.

Boston Properties, Inc.

First Quarter 2004

UNCONSOLIDATED JOINT VENTURES

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of March 31, 2004


	Market Square North			Metropolitan Square			140 Kendrick Street (1)		265 Franklin Street			901 New York Avenue (2)			801 New Jersey Avenue (2)			Combined
Total Equity (3)	$	9,756		$	32,343		$	—	$	23,749		$	14,653		$	3,054		$	83,555

Mortgage/Construction loans payable (3)	$	47,633		$	68,937		$	—	$	18,897		$	14,331		$	—		$	149,798

BXP’s nominal ownership percentage		50.00	%		51.00	%		—		35.00	%		25.00	%		50.00	%

Results of Operations

(unaudited and in thousands)

for the three months ended March 31, 2004


	Market Square North		Metropolitan Square		140 Kendrick Street (1)			265 Franklin Street		901 New York Avenue (2)		801 New Jersey Avenue (2)		Combined
REVENUE
Total revenue	$	5,325	$	6,602	$	2,515		$	4,015	$	—	$	—	$	18,457	(4)

EXPENSES
Operating		1,522		2,130		390			1,375		—		—		5,417

SUBTOTAL		3,803		4,472		2,125			2,640		—		—		13,040
Interest		1,837		2,809		958			328		—		—		5,932
Depreciation and amortization		1,376		1,190		319			778		—		—		3,663

NET INCOME	$	590	$	473	$	848		$	1,534	$	—	$	—	$	3,445

BXP’s share of net income	$	295	$	242	$	303	(5)	$	537	$	—	$	—	$	1,377
BXP’s share of depreciation & amortization		688		607		130			273		—		—		1,698

BXP’s share of Funds from Operations (FFO)	$	983	$	849	$	433	(5)	$	810	$	—	$	—	$	3,075

(1)	The Company acquired the outside partner’s interest on March 24, 2004.

(2)	Property is currently not in service (i.e., under construction or undeveloped land).

(3)	Represents the Company’s share.

(4)	The impact of the straight-line rent adjustment increased revenue by $649 for the three months ended March 31, 2004.

(5)	Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.

Boston Properties, Inc.

First Quarter 2004

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments by Property

(in thousands)


Property	2004			2005			2006			2007			2008			Thereafter			Total
Metropolitan Square (51%)*	$	578		$	830		$	901		$	978		$	1,061		$	64,589		$	68,937
Market Square North (50%)*		648			927			1,001			1,081			1,167			42,809			47,633
265 Franklin Street (35%)*		18,897			—			—			—			—			—			18,897
901 New York Avenue (25%)*		—			14,331			—			—			—			—			14,331

	$	20,123		$	16,088		$	1,902		$	2,059		$	2,228		$	107,398		$	149,798


Weighted Average Rate		2.74	%		3.34	%		7.95	%		7.95	%		7.95	%		8.02	%		6.80	%
% of Total Debt		13.43	%		10.74	%		1.27	%		1.37	%		1.49	%		71.70	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	22.16	%	2.56	%	1.0 years
Fixed Rate Debt	77.84	%	8.01	%	6.3 years

Total Debt	100.00	%	6.80	%	5.2 years

(*)	All amounts represent the Company’s share.

Boston Properties, Inc.

First Quarter 2004

PORTFOLIO OVERVIEW

Rentable Square Footage and Percentage of Net Operating Income of In-Service Properties ⁽¹⁾ by Location and Type of Property for the Quarter Ended March 31, 2004 ⁽²⁾


Geographic Area	Square Feet Office (3)		% of NOI Office		Square Feet Office/ Technical		% of NOI Office/ Technical		Square Feet Industrial		% of NOI Industrial	Square Feet Total		Square Feet % of Total		% of NOI Hotel		% of NOI Total
Greater Boston	7,810,659	(4)	21.6	%	545,206		0.8	%	152,009		—	8,507,874		27.17	%	0.7	%	23.1	%
Greater Washington	6,563,779	(5)	16.3	%	909,536		1.0	%	—		—	7,473,315		23.86	%	—		17.3	%
Greater San Francisco	4,724,208		15.0	%	—		—		40,000		—	4,764,208		15.21	%	—		15.0	%
Midtown Manhattan	6,548,777		36.2	%	—		—		—		—	6,548,777		20.91	%	—		36.2	%
Princeton/East Brunswick, NJ	2,316,581		5.0	%	—		—		—		—	2,316,581		7.40	%	—		5.0	%
Baltimore, MD	637,605		1.6	%	—		—		—		—	637,605		2.04	%	—		1.6	%
Richmond, VA	906,763		1.8	%	—		—		—		—	906,763		2.90	%	—		1.8	%
Bucks County, PA	—		—		—		—		161,000		—	161,000		0.51	%	—		—

	29,508,372		97.5	%	1,454,742		1.8	%	353,009		—	31,316,123		100.00	%	0.7	%	100.0	%

% of Total	94.23	%			4.65	%			1.13	%		100.00	%

Percentage of Net Operating Income of In-Service Properties

by Location and Type of Property (2)


Geographic Area	CBD		Suburban		Total
Greater Boston	16.2	%	7.0	%	23.2	%
Greater Washington	4.7	%	12.6	%	17.3	%
Greater San Francisco	14.4	%	0.5	%	14.9	%
Midtown Manhattan	36.2	%	—		36.2	%
Princeton/East Brunswick, NJ	—		5.0	%	5.0	%
Baltimore, MD	1.6	%	—		1.6	%
Richmond, VA	1.8	%	—		1.8	%
Bucks County, PA	—		—		—

Total	74.9	%	25.1	%	100.0	%

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	31,270	9,496,175

(1)	For disclosures relating to our definition of In-Service Properties, see page 52.

(2)	For a quantitative reconciliation of consolidated net operating income (NOI) to net income in accordance with GAAP, see page 45. For disclosures relating to our use of NOI see page 52. NOI from unconsolidated joint ventures has been excluded from consolidated NOI.

(3)	Includes approximately 1,300,000 square feet of retail space.

(4)	Includes 344,126 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

(5)	Includes 585,220 square feet at Metropolitan Square which is 51% owned by Boston Properties and 401,279 square feet at Market Square North which is 50% owned by Boston Properties.

Boston Properties, Inc.

First Quarter 2004

In-Service Property Listing

as of March 31, 2004


	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	1,182,677	96.0	%	$	36.62	Y	CBD
111 Huntington Avenue—The Prudential Center	CBD Boston MA	1	853,672	99.6	%		50.07	N	CBD
101 Huntington Avenue—The Prudential Center	CBD Boston MA	1	504,864	80.9	%		43.83	Y	CBD
(1) The Shops at the Prudential Center	CBD Boston MA	1	533,879	95.0	%		50.81	Y	CBD
(2) Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		44.79	N	CBD
265 Franklin Street (35% ownership)	CBD Boston MA	1	344,126	75.4	%		56.75	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	92.1	%		42.48	N	CBD
Three Cambridge Center	East Cambridge MA	1	107,484	100.0	%		31.94	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	%		35.21	Y	CBD
Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		45.27	N	CBD
University Place	Mid-Cambridge MA	1	195,282	100.0	%		36.30	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	526,165	82.0	%		32.19	Y	S
204 Second Avenue	Route 128 Mass Turnpike MA	1	40,974	52.7	%		32.36	N	S
140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		27.55	Y	S
170 Tracer Lane	Route 128 Mass Turnpike MA	1	75,073	58.4	%		25.52	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	95.5	%		27.10	N	S
195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		47.84	N	S
200 West Street	Route 128 Mass Turnpike MA	1	248,048	100.0	%		35.09	N	S
(2) Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	69.1	%		29.50	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	152,960	95.3	%		25.42	Y	S
Bedford Business Park	Route 128 Northwest MA	1	90,000	100.0	%		20.05	Y	S
32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		29.34	N	S
91 Hartwell Avenue	Route 128 Northwest MA	1	121,685	79.6	%		32.83	Y	S
92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		52.07	N	S
100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		16.05	N	S
33 Hayden Avenue	Route 128 Northwest MA	1	80,872	43.3	%		29.56	N	S
Lexington Office Park	Route 128 Northwest MA	2	166,735	83.0	%		29.22	N	S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		30.67	Y	S
181 Spring Street	Route 128 Northwest MA	1	53,595	41.2	%		36.90	N	S
201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		35.17	N	S
40 Shattuck Road	Route 128 Northwest MA	1	120,000	88.6	%		26.70	N	S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		19.46	N	S
Newport Office Park	Route 128 South MA	1	168,829	44.6	%		25.38	N	S

		41	7,810,659	90.2	%	$	37.44

Office/Technical
Fourteen Cambridge Center	East Cambridge MA	1	67,362	100.0	%		21.90	N	CBD
Bedford Business Park	Route 128 Northwest MA	2	383,704	100.0	%		15.60	Y	S
17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		12.00	N	S
164 Lexington Road	Route 128 Northwest MA	1	64,140	100.0	%		10.90	N	S

		5	545,206	100.0	%	$	15.63

Industrial
40-46 Harvard Street	Route 128 Southwest MA	1	152,009	0.0	%		—	N	S

	Total Greater Boston	47	8,507,874	89.2	%	$	35.87

Boston Properties, Inc.

First Quarter 2004

In-Service Property Listing (continued)

as of March 31, 2004


	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	96.7	%	$	38.71	Y	CBD
500 E Street, N. W.	Southwest Washington DC	1	242,769	100.0	%		33.94	N	CBD
Metropolitan Square (51% ownership)	East End Washington DC	1	585,220	100.0	%		40.88	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	401,279	100.0	%		46.94	Y	CBD
(2) 1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		37.33	N	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		35.64	Y	CBD
(3) Decoverly Two	Montgomery County MD	1	77,747	100.0	%		25.20	N	S
(3) Decoverly Three	Montgomery County MD	1	77,040	83.2	%		26.41	N	S
Democracy Center	Montgomery County MD	3	679,378	83.5	%		31.27	Y	S
Montvale Center	Montgomery County MD	1	120,861	88.7	%		24.44	Y	S
2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		33.97	N	S
Orbital Sciences 1&3	Loudoun County	2	176,726	100.0	%		23.70	N	S
Orbital Sciences 2	Loudoun County	1	160,502	100.0	%		24.21	N	S
(3) The Arboretum	Fairfax County VA	1	95,584	100.0	%		25.90	N	S
(2) One Freedom Square	Fairfax County VA	1	410,308	98.9	%		32.63	Y	S
(2) Two Freedom Square	Fairfax County VA	1	421,502	100.0	%		35.04	N	S
One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		24.44	N	S
Two Reston Overlook	Fairfax County VA	1	132,669	89.2	%		29.41	N	S
(2) One Discovery Square	Fairfax County VA	1	181,019	100.0	%		38.08	N	S
(2) Two Discovery Square	Fairfax County VA	1	185,999	95.9	%		33.32	N	S
New Dominion Technology Park	Fairfax County VA	1	235,201	100.0	%		31.61	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	N	S
NIMA Building	Fairfax County VA	1	263,870	100.0	%		29.44	N	S

		29	6,563,779	97.3	%	$	33.65

Office/Technical
Broad Run Business Park	Loudoun County	1	127,286	63.4	%		20.41	N	S
Sugarland Business Park, Building One	Fairfax County VA	1	52,313	92.6	%		14.87	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		17.73	N	S
7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		19.91	N	S
7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		20.71	N	S
7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		13.92	N	S
8000 Grainger Court	Fairfax County VA	1	88,775	72.2	%		14.63	N	S
7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.71	N	S
7501 Boston Boulevard	Fairfax County VA	1	75,756	100.0	%		23.64	N	S
7601 Boston Boulevard	Fairfax County VA	1	103,750	100.0	%		14.22	N	S
7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		17.57	N	S
8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		10.49	N	S
7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		21.48	N	S

		13	909,536	91.7	%	$	17.16

Total Greater Washington		42	7,473,315	96.6	%	$	31.75

Boston Properties, Inc.

First Quarter 2004

In-Service Property Listing (continued)

as of March 31, 2004


	Sub Market		Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
	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)
Midtown Manhattan
Office
599 Lexington Avenue	Park Avenue NY	1	1,018,843	99.9	%	$	64.25	Y	CBD
280 Park Avenue	Park Avenue NY	1	1,171,196	99.7	%		61.87	Y	CBD
Citigroup Center	Park Avenue NY	1	1,576,803	96.0	%		60.36	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,680,156	99.9	%		71.05	N	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.32	N	CBD

	Total Midtown Manhattan:	5	6,548,777	98.9	%	$	62.98

Princeton/East Brunswick, NJ
Office
101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	28.64	Y	S
104 Carnegie Center	Princeton NJ	1	102,830	78.4	%		33.04	N	S
105 Carnegie Center	Princeton NJ	1	69,648	100.0	%		29.90	N	S
201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		27.46	N	S
202 Carnegie Center	Princeton NJ	1	128,625	97.7	%		30.66	Y	S
206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		29.74	Y	S
210 Carnegie Center	Princeton NJ	1	161,112	86.9	%		30.21	N	S
211 Carnegie Center	Princeton NJ	1	47,025	—			—	N	S
212 Carnegie Center	Princeton NJ	1	148,233	98.5	%		32.60	N	S
214 Carnegie Center	Princeton NJ	1	150,416	95.4	%		28.69	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		32.18	N	S
502 Carnegie Center	Princeton NJ	1	116,374	95.3	%		33.46	N	S
504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		28.18	Y	S
506 Carnegie Center	Princeton NJ	1	136,213	100.0	%		31.38	Y	S
508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		28.11	Y	S
510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		27.84	Y	S
One Tower Center	East Brunswick NJ	1	412,222	84.1	%		35.31	N	S

	Total Princeton/East Brunswick, NJ:	16	2,316,581	92.5	%	$	30.88

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	836,421	94.3	%	$	42.41	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	780,079	85.2	%		46.85	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	773,547	79.4	%		40.99	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	938,513	92.8	%		61.30	Y	CBD
Federal Reserve	CBD San Francisco CA	1	149,592	99.8	%		48.37	Y	CBD
West Tower	CBD San Francisco CA	1	473,776	99.7	%		41.53	Y	CBD
611 Gateway	South San Francisco CA	1	256,302	—			—	N	S
601 and 651 Gateway	South San Francisco CA	2	515,978	53.2	%		33.00	Y	S

		9	4,724,208	81.2	%	$	46.69

Industrial
560 Forbes Blvd	South San Francisco CA	1	40,000	100.0	%		10.71	N	S

		1	40,000	100.0	%	$	10.71

	Total Greater San Francisco:	10	4,764,208	81.3	%	$	46.32

Boston Properties, Inc.

First Quarter 2004

In-Service Property Listing (continued)

as of March 31, 2004


	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	637,605	96.0	%	$	31.74	Y	CBD

Richmond, VA
Office
Riverfront Plaza	Richmond VA	1	906,763	91.7	%	$	21.11	Y	CBD

Bucks County, PA
Industrial
(4) 38 Cabot Boulevard	Bucks County PA	1	161,000	100.0	%	$	4.87	N	S

	Total In-Service Properties:	123	31,316,123	92.3	%(5)	$	41.27

(1)	93,856 square feet of space is unencumbered.

(2)	Not included in same property analysis.

(3)	Subsequent to March 31, 2004, property has been sold. Total Washington D.C. occupancy without these properties would have been 96.7%.

(4)	Subsequent to March 31, 2004, property is under contract to be sold.

(5)	Occupancy at March 31, 2004 would have remained at 92.3% if all properties under contract to be sold or sold subsequent to March 31, 2004 were not included.

Boston Properties, Inc.

First Quarter 2004

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION


*TOP 20 TENANTS BY SQUARE FEET LEASED*						TENANT DIVERSIFICATION (GROSS RENT) *
	Tenant	Sq. Ft.		% of Portfolio
1	U.S. Government	1,432,271		4.57	%
2	Citibank, N.A.	1,231,068		3.93	%
3	Ernst and Young	1,064,939		3.40	%
4	Shearman & Sterling	585,808		1.87	%
5	Lockheed Martin Corporation	567,429		1.81	%
6	Gillette Company	485,932		1.55	%
7	Wachovia	476,934		1.52	%
8	Parametric Technology Corp.	470,987		1.50	%
9	Lehman Brothers	436,723		1.39	%
10	Washington Group International	365,245		1.17	%
11	Deutsche Bank Trust	346,617		1.11	%
12	Orbital Sciences Corporation	337,228		1.08	%
13	T. Rowe Price Associates, Inc.	330,313		1.05	%
14	Northrop Grumman	326,385		1.04	%
15	Hunton & Williams	305,837		0.98	%
16	Akin Gump Strauss Hauer & Feld	302,653		0.97	%
17	Kirkland & Ellis	294,821	(1)	0.94	%
18	Digitas	279,182		0.89	%
19	Bingham McCutchen	267,905		0.86	%
20	Accenture	265,622		0.85	%
	Total % of Portfolio Square Feet			32.48	%
	Total % of Portfolio Revenue			35.24	%

*Major Signed Deals for Future Development*
Tenant		Property		Sq. Ft.
U.S. Government Finnegan Henderson Farabow Garrett & Dunner, LLP		New Dominion Tech. 901 New York Ave		257,400 254,125		* The classification of the Company’s tenants is based on the U.S. Government’s North American Industry Classification System (NAICS), which has replaced the Standard Industrial Classification (SIC) system.
O’Melveny & Myers		Times Square Tower		247,642

(1)	Includes 159,430 square feet of space in a property in which Boston Properties has a 51% interest.

Boston Properties, Inc.

First Quarter 2004

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
2004	1,294,758	$	47,540,132	$	36.72	$	47,558,500	$	36.73	4.59	%
2005	2,423,630		88,004,641		36.31		89,076,897		36.75	8.59	%
2006	2,188,023		99,700,846		45.57		101,158,414		46.23	7.76	%
2007	2,362,097		90,262,738		38.21		92,622,658		39.21	8.38	%
2008	1,522,506		65,128,727		42.78		67,309,448		44.21	5.40	%
2009	2,847,853		109,808,796		38.56		118,850,833		41.73	10.10	%
2010	1,610,328		70,683,982		43.89		77,945,562		48.40	5.71	%
2011	2,643,069		112,053,659		42.40		125,742,245		47.57	9.37	%
2012	2,104,768		98,270,910		46.69		106,105,836		50.41	7.46	%
2013	494,921		18,857,469		38.10		21,126,806		42.69	1.75	%
Thereafter	6,199,803		293,749,706		47.38		345,190,207		55.68	21.98	%

Occupancy By Location*


	CBD				Suburban				Total
Location	31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03
Greater Boston	93.8	%	93.7	%	85.6	%	85.4	%	90.2	%	90.1	%
Greater Washington	99.4	%	99.8	%	96.1	%	95.6	%	97.3	%	97.1	%
Midtown Manhattan	98.9	%	99.4	%	—		—		98.9	%	99.4	%
Baltimore, MD	96.0	%	95.1	%	—		—		96.0	%	95.1	%
Princeton/East Brunswick, NJ	—		—		92.5	%	93.4	%	92.5	%	93.4	%
Richmond, VA	91.7	%	89.2	%	—		—		91.7	%	89.2	%
Greater San Francisco	90.1	%	91.1	%	35.5	%	33.0	%	81.2	%	81.6	%
Bucks County, PA	n/a		n/a		n/a		n/a		n/a		n/a

Total Portfolio	95.5	%	95.7	%	87.6	%	87.4	%	92.6	%	92.7	%

*	Includes approximately 1,300,000 square feet of retail space.

Boston Properties, Inc.

First Quarter 2004

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
2004	25,449	$	491,698	$	19.32	$	491,698	$	19.32	1.75	%
2005	69,345		796,571		11.49		815,549		11.76	4.77	%
2006	318,164		4,593,883		14.44		4,621,936		14.53	21.87	%
2007	321,900		5,699,812		17.71		5,963,313		18.53	22.13	%
2008	39,380		803,093		20.39		841,337		21.36	2.71	%
2009	28,702		725,781		25.29		736,075		25.65	1.97	%
2010	79,971		1,176,252		14.71		1,176,252		14.71	5.50	%
2011	137,321		2,346,218		17.09		2,546,218		18.54	9.44	%
2012	72,362		1,625,589		22.46		1,807,154		24.97	4.97	%
2013	—		—		—		—		—	—
Thereafter	311,221		5,169,828		16.61		6,150,824		19.76	21.39	%


*Occupancy By Location*
Location	CBD				Suburban				Total
Location	31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03
Greater Boston	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Greater Washington	—		—		91.7	%	81.9	%	91.7	%	81.9	%
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	—		—		n/a		100.0	%	n/a		100.0	%
Bucks County, PA	n/a		n/a		n/a		n/a		n/a		n/a

Total Portfolio	100.0	%	100.0	%	94.6	%	89.0	%	94.8	%	89.4	%

Boston Properties, Inc.

First Quarter 2004

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
2004	201,000	$	1,212,318	$	6.03	$	1,212,318	$	6.03	56.94	%
2005	—		—		—		—		—	—
2006	—		—		—		—		—	—
2007	—		—		—		—		—	—
2008	—		—		—		—		—	—
2009	—		—		—		—		—	—
2010	—		—		—		—		—	—
2011	—		—		—		—		—	—
2012	—		—		—		—		—	—
2013	—		—		—		—		—	—
Thereafter	—		—		—		—		—	—

Occupancy By Location


	CBD		Suburban				Total
Location	31-Mar-04	31-Dec-03	31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03
Greater Boston	—	—	—		—		—		—
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	—	—	56.9	%	56.6	%	56.9	%	56.6	%

Boston Properties, Inc.

First Quarter 2004

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
2004	47,321	$	3,579,207	$	75.64	$	3,944,859	$	83.36	3.66	%
2005	58,809		3,619,939		61.55		3,691,900		62.78	4.55	%
2006	57,067		3,097,794		54.28		3,108,479		54.47	4.42	%
2007	37,486		2,203,801		58.79		2,304,184		61.47	2.90	%
2008	70,404		3,474,677		49.35		3,630,198		51.56	5.45	%
2009	60,424		2,523,107		41.76		2,679,708		44.35	4.68	%
2010	130,897		4,886,166		37.33		5,326,314		40.69	10.13	%
2011	43,217		2,718,530		62.90		3,125,914		72.33	3.35	%
2012	103,652		4,889,336		47.17		5,480,717		52.88	8.02	%
2013	61,782		5,274,158		85.37		5,803,038		93.93	4.78	%
Thereafter	620,769		30,515,489		49.16		37,478,442		60.37	48.05	%

Boston Properties, Inc.

First Quarter 2004

GRAND TOTAL OF ALL

IN-SERVICE 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
2004	1,568,528	$	52,823,355	$	33.68	$	53,207,376	$	33.92	5.0	%
2005	2,551,784		92,421,152		36.22		93,584,345		36.67	8.1	%
2006	2,563,254		107,392,523		41.90		108,888,829		42.48	8.2	%
2007	2,721,483		98,166,351		36.07		100,890,156		37.07	8.7	%
2008	1,632,290		69,406,497		42.52		71,780,983		43.98	5.2	%
2009	2,936,979		113,057,684		38.49		122,266,615		41.63	9.4	%
2010	1,821,196		76,746,399		42.14		84,448,127		46.37	5.8	%
2011	2,823,607		117,118,408		41.48		131,414,377		46.54	9.0	%
2012	2,280,782		104,785,836		45.94		113,393,707		49.72	7.3	%
2013	556,703		24,131,626		43.35		26,929,843		48.37	1.8	%
Thereafter	7,131,793		329,435,023		46.19		388,819,473		54.52	22.8	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03		31-Mar-04		31-Dec-03
Greater Boston	93.8	%	93.8	%	84.1	%	83.5	%	89.2	%	88.9	%
Greater Washington	99.4	%	99.8	%	95.3	%	93.0	%	96.6	%	95.1	%
Midtown Manhattan	98.9	%	99.4	%	—		—		98.9	%	99.4	%
Baltimore, MD	96.0	%	95.1	%	—		—		96.0	%	95.1	%
Princeton/East Brunswick, NJ	—		—		92.5	%	93.4	%	92.5	%	93.4	%
Richmond, VA	91.7	%	89.2	%	—		—		91.7	%	89.2	%
Greater San Francisco	90.1	%	91.1	%	38.7	%	47.0	%	81.3	%	82.4	%
Bucks County, PA	—		—		100.0	%	100.0	%	100.0	%	100.0	%

Total Portfolio	95.5	%	95.8	%	87.5	%	86.7	%	92.3	%	92.1	%

Boston Properties, Inc.

First Quarter 2004

IN-SERVICE 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
2004	283,411	$	9,144,050	$	32.26	$	9,144,050	$	32.26	—	$	—	$	—	$	—	$	—
2005	820,486		31,750,372		38.70		31,928,285		38.91	—		—		—		—		—
2006	551,365		19,359,815		35.11		19,370,509		35.13	253,704		3,551,372		14.00		3,551,372		14.00
2007	483,586		18,957,041		39.20		19,549,042		40.43	144,140		1,946,210		13.50		2,207,420		15.31
2008	499,194		16,275,194		32.60		16,634,398		33.32	—		—		—		—		—
2009	1,054,270		37,783,346		35.84		40,837,718		38.74	—		—		—		—		—
2010	157,348		4,993,891		31.74		5,483,867		34.85	—		—		—		—		—
2011	799,202		30,300,956		37.91		34,471,078		43.13	80,000		1,548,302		19.35		1,748,302		21.85
2012	608,127		22,109,759		36.36		24,462,393		40.23	72,362		1,625,589		22.46		1,807,154		24.97
2013	232,879		10,511,781		45.14		11,457,274		49.20	—		—		—		—		—
Thereafter	735,200		30,440,680		41.40		33,267,661		45.25	—		—		—		—		—

	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
2004	—	$	—	$	—	$	—	$	—	34,222	$	2,955,264	$	86.36	$	3,320,916	$	97.04
2005	—		—		—		—		—	23,498		1,730,765		73.66		1,767,461		75.22
2006	—		—		—		—		—	15,249		1,213,710		79.59		1,214,306		79.63
2007	—		—		—		—		—	4,000		422,797		105.70		428,973		107.24
2008	—		—		—		—		—	5,598		514,163		91.85		514,163		91.85
2009	—		—		—		—		—	6,475		526,349		81.29		554,353		85.61
2010	—		—		—		—		—	77,838		2,654,066		34.10		2,728,286		35.05
2011	—		—		—		—		—	13,527		727,550		53.79		776,050		57.37
2012	—		—		—		—		—	52,949		1,852,792		34.99		1,919,666		36.25
2013	—		—		—		—		—	18,378		2,429,857		132.22		2,550,811		138.80
Thereafter	—		—		—		—		—	427,659		16,531,894		38.66		19,144,082		44.76

Boston Properties, Inc.

First Quarter 2004

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	52,196		1,521,365		29.15		1,521,365		29.15	—		—		—		—		—
Q3 2004	97,606		3,126,874		32.04		3,126,874		32.04	—		—		—		—		—
Q4 2004	133,609		4,495,811		33.65		4,495,811		33.65	—		—		—		—		—

Total 2004	283,411	$	9,144,050	$	32.26	$	9,144,050	$	32.26	—		—		—		—		—

Q1 2005	95,369	$	3,852,771	$	40.40	$	3,852,771	$	40.40	—	$	—	$	—	$	—	$	—
Q2 2005	240,266		7,415,127		30.86		7,414,371		30.86	—		—		—		—		—
Q3 2005	172,388		9,126,894		52.94		9,264,297		53.74	—		—		—		—		—
Q4 2005	312,463		11,355,580		36.34		11,396,846		36.47	—		—		—		—		—

Total 2005	820,486	$	31,750,372	$	38.70	$	31,928,285	$	38.91	—		—		—		—		—


	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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	—		—		—		—		—	13,895		1,228,931		88.44		1,337,531		96.26
Q3 2004	—		—		—		—		—	7,521		620,767		82.54		728,767		96.90
Q4 2004	—		—		—		—		—	12,806		1,105,566		86.33		1,254,617		97.97

Total 2004	—		—	$	—	$	—	$	—	34,222	$	2,955,264	$	86.36	$	3,320,915	$	97.04

Q1 2005	—	$	—	$	—		—	$	—	8,028	$	686,368	$	85.50	$	680,368	$	84.75
Q2 2005	—		—		—		—		—	678		156,730		231.17		159,730		235.59
Q3 2005	—		—		—		—		—	2,145		280,864		130.94		280,864		130.94
Q4 2005	—		—		—		—		—	12,647		606,803		47.98		646,499		51.12

Total 2005	—	$	—	$	—	$	—	$	—	23,498	$	1,730,765	$	73.66	$	1,767,461	$	75.22

Boston Properties, Inc.

First Quarter 2004

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
2004	77,574	$	2,925,943	$	37.72	$	2,929,287	$	37.76	25,449	$	491,698	$	19.32	$	491,698	$	19.32
2005	457,720		17,064,735		37.28		17,642,105		38.54	69,345		796,571		11.49		815,549		11.76
2006	220,011		6,662,269		30.28		6,984,195		31.74	64,460		1,042,511		16.17		1,070,564		16.61
2007	358,382		12,373,961		34.53		12,733,744		35.53	177,760		3,753,602		21.12		3,755,893		21.13
2008	213,594		6,906,161		32.33		7,583,743		35.51	39,380		803,093		20.39		841,337		21.36
2009	1,061,414		37,087,752		34.94		40,252,386		37.92	28,702		725,781		25.29		736,075		25.65
2010	773,044		28,363,074		36.69		31,523,720		40.78	79,971		1,176,252		14.71		1,176,252		14.71
2011	965,218		31,004,014		32.12		36,012,367		37.31	57,321		797,916		13.92		797,916		13.92
2012	443,904		16,494,298		37.16		20,188,305		45.48	—		—		—		—		—
2013	57,015		1,529,663		26.83		1,878,357		32.94	—		—		—		—		—
Thereafter	1,288,369		40,495,167		31.43		47,298,207		36.71	311,221		5,169,828		16.61		6,150,824		19.76

	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
2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2005	—		—		—		—		—	1,204		27,825		23.11		27,825		23.11
2006	—		—		—		—		—	448		8,938		19.95		9,184		20.50
2007	—		—		—		—		—	5,109		219,419		42.95		233,780		45.76
2008	—		—		—		—		—	18,489		747,135		40.41		789,470		42.70
2009	—		—		—		—		—	23,554		695,763		29.54		764,646		32.46
2010	—		—		—		—		—	17,280		588,368		34.05		679,893		39.35
2011	—		—		—		—		—	11,221		474,123		42.25		531,961		47.41
2012	—		—		—		—		—	10,046		271,260		27.00		326,087		32.46
2013	—		—		—		—		—	11,675		469,861		40.25		612,906		52.50
Thereafter	—		—		—		—		—	35,365		1,193,940		33.76		1,522,591		43.05

Boston Properties, Inc.

First Quarter 2004

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	20,243		663,482		32.78		663,482		32.78	12,041		265,424		22.04		265,424		22.04
Q3 2004	22,466		868,383		38.65		871,727		38.80	13,408		226,274		16.88		226,274		16.88
Q4 2004	34,865		1,394,078		39.99		1,394,078		39.99	—		—		—		—		—

Total 2004	77,574	$	2,925,943	$	37.72	$	2,929,287	$	37.76	25,449	$	491,698	$	19.32	$	491,698	$	19.32

Q1 2005	107,521	$	4,254,181	$	39.57	$	4,303,927	$	40.03	—	$	—	$	—	$	—	$	—
Q2 2005	69,489		2,216,753		31.90		2,261,035		32.54	52,539		551,190		10.49		564,108		10.74
Q3 2005	82,181		2,751,483		33.48		2,849,356		34.67	16,806		245,381		14.60		251,441		14.96
Q4 2005	198,529		7,842,318		39.50		8,227,787		41.44	—		—		—		—		—

Total 2005	457,720	$	17,064,735	$	37.28	$	17,642,105	$	38.54	69,345	$	796,571	$	11.49	$	815,549	$	11.76


	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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	—		—		—		—		—	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	—		—		—		—		—	—		—		—		—		—

Total 2004	—	$	—	$	—		—	$	—	—		—	$	—		—	$	—

Q1 2005	—	$	—	$	—	$	—	$	—	1,204	$	27,825	$	23.11	$	27,825	$	23.11
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	—	$	—	$	—	$	—	$	—	1,204	$	27,825	$	23.11		27,825	$	23.11

Boston Properties, Inc.

First Quarter 2004


*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
2004	503,503	$20,179,592	$40.08	$20,179,592	$40.08	—	$—	$—	$—	$—
2005	392,965	15,620,679	39.75	15,726,183	40.02	—	—	—	—	—
2006	928,389	44,775,229	48.23	45,766,625	49.30	—	—	—	—	—
2007	422,900	19,756,601	46.72	20,204,087	47.78	—	—	—	—	—
2008	297,495	10,815,283	36.35	11,338,804	38.11	—	—	—	—	—
2009	182,425	8,802,817	48.25	9,193,682	50.40	—	—	—	—	—
2010	207,383	11,779,843	56.80	13,429,972	64.76	—	—	—	—	—
2011	209,360	18,391,054	87.84	18,924,568	90.39	—	—	—	—	—
2012	127,771	5,480,433	42.89	5,955,074	46.61	—	—	—	—	—
2013	113,194	3,907,683	34.52	4,520,402	39.93	—	—	—	—	—
Thereafter	358,437	11,318,326	31.58	12,435,553	34.69	—	—	—	—	—


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
2004	40,000	$428,580	$10.71	$428,580	$10.71	6,712	$ 338,683	$50.46	$ 338,683	$50.46
2005	—	—	—	—	—	27,297	1,311,345	48.04	1,329,345	48.70
2006	—	—	—	—	—	25,795	1,176,314	45.60	1,180,500	45.76
2007	—	—	—	—	—	18,341	1,133,184	61.78	1,213,031	66.14
2008	—	—	—	—	—	39,524	1,973,807	49.94	2,067,455	52.31
2009	—	—	—	—	—	30,395	1,300,995	42.80	1,360,709	44.77
2010	—	—	—	—	—	30,749	1,287,013	41.86	1,501,417	48.83
2011	—	—	—	—	—	3,474	186,722	53.75	227,915	65.61
2012	—	—	—	—	—	35,018	2,132,315	60.89	2,410,897	68.85
2013	—	—	—	—	—	9,301	672,516	72.31	739,809	79.54
Thereafter	—	—	—	—	—	13,539	817,836	60.41	876,146	64.71

Boston Properties, Inc.

First Quarter 2004

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	120,687		4,484,552		37.16		4,484,552		37.16	—		—		—		—		—
Q3 2004	219,433		10,013,388		45.63		10,013,388		45.63	—		—		—		—		—
Q4 2004	163,383		5,681,652		34.78		5,681,652		34.78	—		—		—		—		—

Total 2004	503,503	$	20,179,592	$	40.08	$	20,179,592	$	40.08	—		—		—		—		—

Q1 2005	142,194	$	5,259,195	$	36.99	$	5,265,804	$	37.03	—	$	—	$	—	$	—	$	—
Q2 2005	108,316		3,961,972		36.58		4,040,199		37.30	—		—		—		—		—
Q3 2005	94,239		4,382,953		46.51		4,394,211		46.63	—		—		—		—		—
Q4 2005	48,216		2,016,558		41.82		2,025,969		42.02	—		—		—		—		—

Total 2005	392,965	$	15,620,678	$	39.75	$	15,726,183	$	40.02	—		—		—		—		—


	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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	—		—		—		—		—	3,853		198,294		51.46		198,294		51.46
Q3 2004	—		—		—		—		—	1,318		86,460		65.60		86,460		65.60
Q4 2004	40,000		428,580		10.71		428,580		10.71	1,541		53,929		35.00		53,929		35.00

Total 2004	40,000	$	428,580	$	10.71	$	428,580	$	10.71	6,712	$	338,683	$	50.46	$	338,683	$	50.46

Q1 2005	—	$	—	$	—	$	—	$	—	11,143	$	476,128	$	42.73	$	476,128		42.73
Q2 2005	—		—		—		—		—	3,215		196,332		61.07		196,332		61.07
Q3 2005	—		—		—		—		—	11,794		545,711		46.27		563,711		47.80
Q4 2005	—		—		—		—		—	1,145		93,175		81.38		93,175		81.38

Total 2005	—		—		—		—		—	27,297	$	1,311,346	$	48.04	$	1,329,346	$	48.70

Boston Properties, Inc.

First Quarter 2004

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
2004	54,320	$	3,874,339	$	71.32	$	3,889,363	$	71.60	—	$	—	$	—	$	—	$	—
2005	66,577		4,650,088		69.85		4,650,088		69.85	—		—		—		—		—
2006	357,204		24,618,536		68.92		24,650,399		69.01	—		—		—		—		—
2007	170,306		10,607,766		62.29		10,714,632		62.91	—		—		—		—		—
2008	503,576		30,905,486		61.37		31,500,986		62.55	—		—		—		—		—
2009	306,218		18,651,709		60.91		20,372,913		66.53	—		—		—		—		—
2010	304,088		20,269,769		66.66		21,542,414		70.84	—		—		—		—		—
2011	394,754		23,864,842		60.45		26,987,150		68.36	—		—		—		—		—
2012	891,075		53,097,631		59.59		54,151,293		60.77	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	3,233,109		195,800,501		60.56		234,865,204		72.64	—		—		—		—		—

	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-up		Per Square Foot
2004	—	$	—	$	—	$	—	$	—	1,300	$	155,578	$	119.68	$	155,578	$	119.68
2005	—		—		—		—		—	1,514		286,075		188.95		296,312		195.71
2006	—		—		—		—		—	15,575		698,833		44.87		704,489		45.23
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	3,232		161,135		49.86		168,377		52.10
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	5,030		356,718		70.92		416,718		82.85
2011	—		—		—		—		—	14,995		1,330,135		88.71		1,589,987		106.03
2012	—		—		—		—		—	5,639		632,969		112.25		824,067		146.14
2013	—		—		—		—		—	15,896		1,461,155		91.92		1,643,588		103.40
Thereafter	—		—		—		—		—	136,160		11,922,522		87.56		15,797,113		116.02

Boston Properties, Inc.

First Quarter 2004

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	30,514		2,580,724		84.58		2,580,724		84.58	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	23,806		1,293,615		54.34		1,308,639		54.97	—		—		—		—		—

Total 2004	54,320	$	3,874,339	$	71.32	$	3,889,363	$	71.60	—		—		—		—		—

Q1 2005	3,667	$	220,219	$	60.05	$	220,219	$	60.05	—	$	—	$	—	$	—	$	—
Q2 2005	7,956		428,830		53.90		428,830		53.90	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	54,954		4,001,039		72.81		4,001,039		72.81	—		—		—		—		—

Total 2005	66,577	$	4,650,088	$	69.85	$	4,650,088	$	69.85	—		—		—		—		—


	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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	—		—		—		—		—	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	—		—		—		—		—	1,300		155,578		119.68		155,578		119.68

Total 2004	—	$	—	$	—	$	—	$	—	1,300	$	155,578	$	119.68	$	155,578	$	119.68

Q1 2005	—	$	—	$	—		—	$	—	—	$	—	$	—	$	—		—
Q2 2005	—		—		—		—		—	1,103		248,287		225.10		257,421	$	233.38
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	411		37,788		91.94		38,891		94.62

Total 2005	—	$	—	$	—	$	—	$	—	1,514	$	286,075	$	188.95	$	296,312	$	195.71

Boston Properties, Inc.

First Quarter 2004

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

Lease Expiration—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
2004	365,314	$	11,042,845	$	30.23	$	11,042,845	$	30.23	—	$	—	$	—	$	—	$	—
2005	228,388		7,314,138		32.03		7,325,283		32.07	—		—		—		—		—
2006	92,016		3,239,725		35.21		3,287,778		35.73	—		—		—		—		—
2007	513,240		15,424,894		30.05		16,210,760		31.59	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	180,384		5,845,213		32.40		6,518,904		36.14	—		—		—		—		—
2010	133,801		4,461,099		33.34		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,368,656		31.00		9,207,429		34.11	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	91,833		2,908,342		31.67		3,270,772		35.62	—		—		—		—		—
Thereafter	251,366		7,457,177		29.67		8,336,181		33.16	—		—		—		—		—

	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
2004	—	$	—	$	—	$	—	$	—	2,904	$	48,000	$	16.53	$	48,000	$	16.53
2005	—		—		—		—		—	—		—		—		—		—
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	—		—		—		—		—

Boston Properties, Inc.

First Quarter 2004

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	33,848		816,600		24.13		816,600		24.13	—		—		—		—		—
Q3 2004	132,356		4,087,421		30.88		4,087,421		30.88	—		—		—		—		—
Q4 2004	199,110		6,138,824		30.83		6,138,824		30.83	—		—		—		—		—

Total 2004	365,314	$	11,042,845	$	30.23	$	11,042,845	$	30.23	—		—		—		—		—

Q1 2005	3,533	$	115,935	$	32.81	$	115,935	$	32.81	—	$	—	$	—	$	—	$	—
Q2 2005	8,977		281,833		31.40		281,833		31.40	—		—		—		—		—
Q3 2005	135,202		4,111,032		30.41		4,122,178		30.49	—		—		—		—		—
Q4 2005	80,676		2,805,337		34.77		2,805,337		34.77	—		—		—		—		—

Total 2005	228,388	$	7,314,137	$	32.03	$	7,325,283	$	32.07	—		—		—		—		—


	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 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

Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—

Boston Properties, Inc.

First Quarter 2004

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
2004	10,636	$	373,363	$	35.10	$	373,363	$	35.10	—	$	—	$	—	$	—	$	—
2005	457,494		11,604,630		25.37		11,804,953		25.80	—		—		—		—		—
2006	39,038		1,045,272		26.78		1,098,908		28.15	—		—		—		—		—
2007	413,683		13,142,476		31.77		13,210,394		31.93	—		—		—		—		—
2008	8,647		226,602		26.21		251,516		29.09	—		—		—		—		—
2009	63,142		1,637,958		25.94		1,675,229		26.53	—		—		—		—		—
2010	34,664		816,306		23.55		1,101,078		31.76	—		—		—		—		—
2011	4,618		124,137		26.88		139,653		30.24	—		—		—		—		—
2012	33,891		1,088,790		32.13		1,348,771		39.80	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	333,322		8,237,856		24.71		8,987,400		26.96	—		—		—		—		—


	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
2004	161,000	$	783,738	$	4.87	$	783,738	$	4.87	2,183	$	81,682	$	37.42	$	81,682	$	37.42
2005	—		—		—		—		—	5,296		263,929		49.84		270,956		51.16
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	10,036		428,400		42.69		428,400		42.69
2008	—		—		—		—		—	3,561		78,438		22.03		90,733		25.48
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	6,532		240,769		36.86		255,923		39.18
Thereafter	—		—		—		—		—	8,046		49,296		6.13		138,510		17.21

Boston Properties, Inc.

First Quarter 2004

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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	8,646		307,661		35.58		307,661		35.58	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	1,990		65,702		33.02		65,702		33.02	—		—		—		—		—

Total 2004	10,636	$	373,363	$	35.10	$	373,363	$	35.10	—	$	—	$	—	$	—	$	—

Q1 2005	1,731	$	36,887	$	21.31	$	37,891	$	21.89	—	$	—	$	—	$	—	$	—
Q2 2005	38,496		1,047,398		27.21		1,068,237		27.75	—		—		—		—		—
Q3 2005	53,177		1,702,196		32.01		1,720,630		32.36	—		—		—		—		—
Q4 2005	364,090		8,818,149		24.22		8,978,195		24.66	—		—		—		—		—

Total 2005	457,494	$	11,604,630	$	25.37	$	11,804,953	$	25.80	—	$	—	$	—	$	—	$	—


	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 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	161,000		783,738		4.87		783,738		4.87	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	—		—		—		—		—	2,183		81,682		37.42		81,682		37.42

Total 2004	161,000	$	783,738	$	4.87	$	783,738	$	4.87	2,183	$	81,682	$	37.42	$	81,682	$	37.42

Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	5,296		263,929		49.84		270,956		51.16
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	—	$	—	$	—	$	—	$	—	5,296	$	263,929	$	49.84	$	270,956	$	51.16

Boston Properties, Inc.

First Quarter 2004


*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
2004	89,547	(1)	$	5,414,489	(1)	$	41.41	(1)	$	5,780,141	$	41.41	55,861	$	2,244,165	$	40.17	$	2,244,165	$	40.17
2005	475,573			22,679,948			47.69			22,848,866		48.04	233,585		9,833,154		42.10		10,160,347		43.50
2006	153,986			7,579,909			49.22			7,552,730		49.05	26,308		1,035,441		39.36		1,070,254		40.68
2007	161,332			8,621,667			53.44			8,841,530		54.80	277,354		9,704,187		34.99		9,847,411		35.50
2008	173,302			6,477,010			37.37			6,608,385		38.13	41,310		1,643,555		39.79		1,746,114		42.27
2009	736,956			26,850,527			36.43			29,370,958		39.85	778,862		28,646,203		36.78		31,666,836		40.66
2010	145,245			5,444,134			37.48			5,755,872		39.63	397,994		16,109,331		40.48		18,457,606		46.38
2011	447,859			23,331,636			52.10			26,388,949		58.92	183,935		7,504,547		40.80		8,741,224		47.52
2012	309,025			13,848,494			44.81			14,757,887		47.76	80,203		3,140,985		39.16		3,158,200		39.38
2013	251,257			12,941,638			51.51			14,008,086		55.75	—		—		—		—		—
Thereafter	945,163			39,227,123			41.50			43,192,613		45.70	140,813		6,533,149		46.04		8,563,177		60.81

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
2004	55,620		$	4,029,917		$	72.45		$	4,044,941	$	72.72	455,792	$	18,599,701	$	40.81	$	18,599,701	$	40.81
2005	68,091			4,936,163			72.49			4,946,400		72.64	351,151		14,891,454		42.41		14,999,769		42.72
2006	372,779			25,317,369			67.92			25,354,888		68.02	907,596		43,452,078		47.88		44,234,442		48.74
2007	170,306			10,607,766			62.29			10,714,632		62.91	424,355		20,310,064		47.86		20,823,431		49.07
2008	506,808			31,066,622			61.30			31,669,363		62.49	264,808		11,064,613		41.78		11,598,467		43.80
2009	306,218			18,651,709			60.91			20,372,913		66.53	203,441		9,851,675		48.43		10,272,426		50.49
2010	309,118			20,626,487			66.73			21,959,132		71.04	230,408		12,891,856		55.95		14,699,669		63.80
2011	409,749			25,194,977			61.49			28,577,137		69.74	212,834		18,577,776		87.29		19,152,483		89.99
2012	896,714			53,730,600			59.92			54,975,360		61.31	162,789		7,612,747		46.76		8,365,970		51.39
2013	15,896			1,461,155			91.92			1,643,588		103.40	122,495		4,580,199		37.39		5,260,212		42.94
Thereafter	3,369,269			207,723,023			61.65			250,662,317		74.40	230,628		9,337,472		40.49		9,817,577		42.57

Princeton/East Brunswick													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
2004	—		$	—		$	—		$	—	$	—	12,819	$	455,045	$	35.50	$	455,045	$	35.50
2005	—			—			—			—		—	462,790		11,868,559		25.65		12,075,909		26.09
2006	—			—			—			—		—	39,038		1,045,272		26.78		1,098,908		28.15
2007	—			—			—			—		—	423,719		13,570,876		32.03		13,638,794		32.19
2008	—			—			—			—		—	12,208		305,040		24.99		342,249		28.03
2009	—			—			—			—		—	63,142		1,637,958		25.94		1,675,229		26.53
2010	—			—			—			—		—	34,664		816,306		23.55		1,101,078		31.76
2011	—			—			—			—		—	4,618		124,137		26.88		139,653		30.24
2012	—			—			—			—		—	33,891		1,088,790		32.13		1,348,771		39.80
2013	—			—			—			—		—	6,532		240,769		36.86		255,923		39.18
Thereafter	—			—			—			—		—	341,368		8,287,152		24.28		9,125,910		26.73

(1)	Includes 34,222 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases with retail is $60.47 and rent on expiring leases with future step-up including retail is $64.55 per square foot.

Boston Properties, Inc.

First Quarter 2004

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
2004	228,086	$	6,684,825	$	29.31	$	6,684,825	$	29.31	47,162	$	1,173,477	$	24.88	$	1,176,821	$	24.95
2005	368,411		10,801,189		29.32		10,846,880		29.44	294,684		8,055,976		27.34		8,325,131		28.25
2006	666,332		16,544,988		24.83		16,583,458		24.89	258,611		6,678,277		25.82		6,993,688		27.04
2007	470,394		12,704,380		27.01		13,343,905		28.37	263,897		6,642,795		25.17		6,876,007		26.06
2008	331,490		10,312,346		31.11		10,540,176		31.80	230,153		6,812,834		29.60		7,468,436		32.45
2009	323,789		11,459,168		35.39		12,021,113		37.13	334,808		9,863,093		29.46		10,086,271		30.13
2010	89,941		2,203,824		24.50		2,456,282		27.31	472,301		14,018,363		29.68		14,922,258		31.59
2011	444,870		9,245,172		20.78		10,606,481		23.84	849,825		24,771,507		29.15		28,601,020		33.66
2012	424,413		11,739,647		27.66		13,431,326		31.65	373,747		13,624,573		36.45		17,356,191		46.44
2013	—		—		—		—		—	68,690		1,999,524		29.11		2,491,263		36.27
Thereafter	217,696		7,745,451		35.58		9,219,130		42.35	1,494,142		40,325,786		26.99		46,408,445		31.06

	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
2004	—	$	—	$	—	$	—	$	—	94,423	$	2,347,154	$	24.86	$	2,347,154	$	24.86
2005	—		—		—		—		—	69,111		2,040,570		29.53		2,055,759		29.75
2006	—		—		—		—		—	46,588		2,499,464		53.65		2,712,683		58.23
2007	—		—		—		—		—	16,886		579,722		34.33		593,687		35.16
2008	—		—		—		—		—	72,211		1,724,478		23.88		1,807,793		25.03
2009	—		—		—		—		—	9,379		252,138		26.88		281,965		30.06
2010	—		—		—		—		—	7,724		175,000		22.66		231,720		30.00
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	141,348		2,798,690		19.80		3,494,123		24.72

	Princeton/East Brunswick									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
2004	368,218	$	11,090,845	$	30.12	$	11,090,845	$	30.12	161,000	$	783,738	$	4.87	$	783,738	$	4.87
2005	228,388		7,314,138		32.03		7,325,283		32.07	—		—		—		—		—
2006	92,016		3,239,725		35.21		3,287,778		35.73	—		—		—		—		—
2007	513,240		15,424,894		30.05		16,210,760		31.59	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	180,384		5,845,213		32.40		6,518,904		36.14	—		—		—		—		—
2010	133,801		4,461,099		33.34		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,368,656		31.00		9,207,429		34.11	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	91,833		2,908,342		31.67		3,270,772		35.62	—		—		—		—		—
Thereafter	251,366		7,457,177		29.67		8,336,181		33.16	—		—		—		—		—

Boston Properties, Inc.

First Quarter 2004

HOTEL PERFORMANCE

Long Wharf Marriott—Boston


	First Quarter 2004			First Quarter 2003			Percent Change
Occupancy		77.7	%		71.8	%	8.2	%
Average Daily Rate	$	166.12		$	166.87		-0.4	%
Revenue per available room	$	129.08		$	119.87		7.7	%

Cambridge Center Marriott


	First Quarter 2004			First Quarter 2003			Percent Change
Occupancy		65.1	%		64.1	%	1.6	%
Average Daily Rate	$	140.06		$	147.18		-4.8	%
Revenue per available room	$	91.18		$	94.39		-3.4	%

Residence Inn by Marriott


	First Quarter 2004			First Quarter 2003			Percent Change
Occupancy		70.8	%		69.5	%	1.9	%
Average Daily Rate	$	115.15		$	117.25		-1.8	%
Revenue per available room	$	81.49		$	81.45		0.0	%

Total Hotel Performance


	First Quarter 2004			First Quarter 2003			Percent Change
Occupancy		71.1	%		68.2	%	4.3	%
Average Daily Rate	$	144.77		$	148.41		-2.5	%
Revenue per available room	$	103.60		$	101.39		2.2	%

Boston Properties, Inc.

First Quarter 2004

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾—By Location


	CBD				Suburban				Total
Location	31-Mar-04		31-Mar-03		31-Mar-04		31-Mar-03		31-Mar-04		31-Mar-03
Greater Boston	93.8	%	92.4	%	85.3	%	89.4	%	89.9	%	91.0	%
Greater Washington	99.4	%	99.4	%	94.2	%	94.2	%	96.0	%	96.0	%
Midtown Manhattan	98.9	%	99.2	%	—		—		98.9	%	99.2	%
Baltimore, MD	96.0	%	98.5	%	—		—		96.0	%	98.5	%
Princeton/East Brunswick, NJ	—		—		92.5	%	95.0	%	92.5	%	95.0	%
Richmond, VA	91.7	%	92.1	%	—		—		91.7	%	92.1	%
Greater San Francisco	90.1	%	91.3	%	38.7	%	57.7	%	81.3	%	85.6	%
Bucks County, PA	—		—		100.0	%	100.0	%	100.0	%	100.0	%

Total Portfolio	95.4	%	95.5	%	86.8	%	90.1	%	92.2	%	93.5	%

Same Property Occupancy⁽¹⁾—By Type of Property


	CBD				Suburban				Total
	31-Mar-04		31-Mar-03		31-Mar-04		31-Mar-03		31-Mar-04		31-Mar-03
Total Office Portfolio	95.4	%	95.5	%	86.8	%	90.4	%	92.5	%	93.8	%
Total Office/Technical Portfolio	100.0	%	100.0	%	94.6	%	88.6	%	94.8	%	89.1	%
Total Industrial Portfolio	—		—		56.9	%	88.3	%	56.9	%	88.3	%

Total Portfolio	95.4	%	95.5	%	86.8	%	90.1	%	92.2	%	93.5	%

⁽¹⁾	For disclosures relating to our definition of Same Property, see page 52.

Boston Properties, Inc.

First Quarter 2004

SAME PROPERTY PERFORMANCE

Office, Office/Technical, Industrial and Hotel Properties


	Office		Office/Technical		Industrial		Hotel (1)		Total
Number of Properties	95		18		3		3		119
Square feet	27,630,149		1,454,742		353,009		937,874		30,375,774
Percent of in-service properties	93.6	%	100.0	%	100.0	%	100.0	%	94.2	%
Occupancy @ 3/31/03	93.8	%	89.1	%	88.3	%	—		93.5	%
Occupancy @ 3/31/04	92.5	%	94.8	%	56.9	%	—		92.2	%
Percent change from 1st quarter 2004 over 1st quarter 2003 (2):
Rental revenue	-0.8	%	-1.6	%	-70.4	%	-0.5	%	-0.9	%
Operating expenses and real estate taxes	0.4	%	-8.7	%	-14.0	%	4.5	%	0.7	%
Net Operating Income (3)	-1.3	%	1.1	%	-107.5	%	-27.7	%	-1.6	%
Net Operating Income (3)—without hotels									-1.3	%

Rental revenue—cash basis	-0.4	%	1.3	%	-71.9	%	-0.5	%	-0.5	%
Net Operating Income (3)—cash basis (4)	-0.9	%	5.2	%	-105.3	%	-27.6	%	-1.2	%
Net Operating Income (3)—cash basis(4)—without hotels									-0.9	%

Same Property Lease Analysis—quarter ended March 31, 2004


	Office			Office/Technical			Industrial			Total
Vacant space available @ 1/1/04 (sf)		2,098,229			97,337			169,273			2,364,839
Square footage of leases expiring or terminated 1/1/04-3/31/04		529,784			12,622			(17,264	)		525,142

Total space for lease (sf)		2,628,013			109,959			152,009			2,889,981

New tenants (sf)		254,267			67,088			—			321,355
Renewals (sf)		257,269			14,338			—			271,607

Total space leased (sf)		511,536			81,426			—			592,962

Space available @ 3/31/04 (sf)		2,116,477			28,533			152,009			2,297,019

Net (increase)/decrease in available space (sf)		(18,248	)		68,804			17,264			67,820
Average lease term (months)		87			106			—			90
2nd generation TI/Comm PSF	$	26.33		$	25.64		$	—		$	26.23
Increase (decrease) in 2nd generation gross rents (5)		-0.14	%		3.41	%		0.00	%		-0.03	%
Increase (decrease) in 2nd generation net rents (5)		2.12	%		2.22	%		0.00	%		2.12	%

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

(2)	See page 46 for a quantitative reconciliation.

(3)	For a quantitative reconciliation of Net Operating Income (NOI) to net income in accordance with GAAP, see page 45. For disclosures relating to our use of NOI, see page 52.

(4)	For a quantitative reconciliation of NOI to NOI on a cash basis, see page 45. For disclosures relating to our use of NOI, see page 52.

(5)	Represents increase in rents on a “cash to cash” basis (actual rent at time of expiration vs.initial rent of new lease) and for only 2nd generation space after eliminating any space vacant for more than 12 months. The total footage being weighted is 523,654 sf.

Boston Properties, Inc.

First Quarter 2004

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	03/31/2004			03/31/2003
	*(in thousands)*
Net income available to common shareholders	$	66,048		$	185,045
Gains on sales of real estate from discontinued operations, net of minority interest		(2,521	)		(73,528	)
Income from discontinued operations, net of minority interest		(1,068	)		(2,924	)
Gains on sales of real estate and other assets, net of minority interest		(6,698	)		(52,912	)
Minority interest in Operating Partnership		17,248			18,313
Income from unconsolidated joint ventures		(1,377	)		(2,658	)
Minority interest in property partnerships		(328	)		(428	)

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and other assets, income from discontinued operations and gains on sales of real estate from discontinued operations		71,304			70,908

Add:
Loss from early extinguishment of debt		6,258			1,474
Net derivative losses		—			932
Depreciation and amortization		56,477			49,472
Interest		74,305			73,645
General and administrative		12,600			11,399

Subtract:
Interest and Other		(7,528	)		(415	)
Development and management services		(3,326	)		(4,590	)

Consolidated Net Operating Income	$	210,090		$	202,825


Same Property Net Operating Income	$	195,071		$	198,280
Net operating income from non same properties (1)		13,461			2,784
Termination income		1,558			1,761

Consolidated Net Operating Income	$	210,090		$	202,825


Same Property Net Operating Income	$	195,071		$	198,280
Less Straight Line Rent		9,156			10,157

Same Property Net Operating Income—cash basis	$	185,915		$	188,123

(1)	See pages 18-21 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

First Quarter 2004

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical										Industrial
	For the three months ended				$ Change			% Change		For the three months ended					$ Change			% Change		For the three months ended						$ Change			% Change
	31-Mar-04		31-Mar-03		$ Change			% Change		31-Mar-04			31-Mar-03		$ Change			% Change		31-Mar-04			31-Mar-03			$ Change			% Change
Rental Revenue	$	286,952	$	289,332						$	5,153		$	5,236						$	100		$	338
Less Termination Income		1,418		1,761							—			—							—			—

Rental revenue—subtotal		285,534		287,571		(2,037	)	-0.7	%		5,153			5,236		(83	)	-1.6	%		100			338			(238	)	-70.4	%
Operating expenses and real estate taxes		95,782		95,361		421		0.4	%		1,319			1,445		(126	)	-8.7	%		115			134			(19	)	-14.2	%

Net Operating Income (1)	$	189,752	$	192,210	$	(2,458	)	-1.3	%	$	3,834		$	3,791	$	43		1.1	%	$	(15	)	$	204		$	(219	)	-107.4	%

Rental revenue—subtotal	$	285,534	$	287,571						$	5,153		$	5,236						$	100		$	338
Less Straight Line Rent		9,166		10,041		(875	)				(10	)		138		(148	)				(3	)		(28	)		25

Rental revenue—cash basis		276,368		277,530		(1,162	)	-0.4	%		5,163			5,098		65		1.3	%		103			366			(263	)	-71.9	%
Less:
Operating expenses and real estate taxes		95,782		95,361		421		0.4	%		1,319			1,445		(126	)	-8.7	%		115			134			(19	)	-14.2	%

Net Operating Income (2)—cash basis	$	180,586	$	182,169	$	(1,583	)	-0.9	%	$	3,844		$	3,653	$	191		5.2	%	$	(12	)	$	232		$	(244	)	-105.2	%



	Hotel									Total
	For the three months ended				$ Change			% Change		For the three months ended				$ Change			% Change
	31-Mar-04		31-Mar-03		$ Change			% Change		31-Mar-04		31-Mar-03		$ Change			% Change
Rental Revenue	$	13,178	$	13,246						$	305,383	$	308,152
Less Termination Income		—		—							1,418		1,761

Rental revenue—subtotal		13,178		13,246	$	(68	)	-0.5	%		303,965		306,391		(2,426	)	-0.8	%
Operating expenses and real estate taxes		11,678		11,171		507		4.5	%		108,894		108,111		783		0.7	%

Net Operating Income (1)	$	1,500	$	2,075	$	(575	)	-27.7	%	$	195,071	$	198,280	$	(3,209	)	-1.6	%

Rental revenue—subtotal	$	13,178	$	13,246						$	303,965	$	306,391
Less Straight Line Rent		3		6		(3	)				9,156		10,157		(1,001	)

Rental revenue—cash basis		13,175		13,240		(65	)	-0.5	%		294,809		296,234		(1,425	)	-0.5	%
Less:
Operating expenses and real estate taxes		11,678		11,171		507		4.5	%		108,894		108,111		783		0.7	%

Net Operating Income (2)—cash basis	$	1,497	$	2,069	$	(572	)	-27.6	%	$	185,915	$	188,123	$	(2,208	)	-1.2	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income in accordance with GAAP, see page 45. For disclosures relating to our use of NOI see page 52.

(2)	For a quantitative reconciliation of net operating income (NOI) on a cash basis see page 45. For disclosures relating to our use of NOI see page 52.

Boston Properties, Inc.

First Quarter 2004

LEASING ACTIVITY

All In-Service Properties—quarter ended March 31, 2004


	Office			Office/ Technical			Industrial			Total
Vacant space available @ 1/1/2004 (sf)		2,207,426			97,337			169,273			2,474,036
Property dispositions		—			—			—			—
New development completed (sf)		—			—			—			—
Leases expiring or terminated 1/1/04-3/31/04 (sf)		534,416			12,622			(17,264	)		529,774

Total space for lease (sf)		2,741,842			109,959			152,009			3,003,810

New tenants (sf)		260,944			67,088			—			328,032
Renewals (sf)		257,269			14,338			—			271,607

Total space leased (sf)		518,213			81,426			—			599,639	(1)

Space available @ 3/31/04 (sf)		2,223,629			28,533			152,009			2,404,171

Net (increase)/decrease in available space (sf)		(16,203	)		68,804			17,264			69,865
Average lease term (months)		87			106			—			90
2nd generation TI/Comm PSF	$	26.33		$	25.64		$	—		$	26.23
Increase (decrease) in 2nd generation gross rents (2)		-0.14	%		3.41	%		0.00	%		-0.03	%
Increase (decrease) in 2nd generation net rents (3)		2.12	%		2.22	%		0.00	%		2.12	%

(1)	Details of 1st and 2nd generation space is located in chart below.

(2)	Represents increase (decrease) in gross rent (total base rent and expense reimbursements), comparing the change in rent at lease expiration vs. initial rent of the new lease for 2nd generation space that has been vacant for less than twelve months. The total footage being weighted is 523,654.

(3)	Represents increase (decrease) in net rent (base rent less base year expense), comparing the rent at lease expiration vs. initial rent of the new lease for 2nd generation space that has been vacant for less than twelve months. The total footage being weighted is 523,654.


	All leases 1st Generation	All leases 2nd Generation	Incr (decr) in 2nd gen. gross rents (2)		Incr (decr) in 2nd gen. net rents (3)		Total Leased
Boston	12,732	239,897	15.93	%	29.40	%	252,629
Washington	11,151	167,275	-1.33	%	-9.93	%	178,426
New York	—	84,950	-9.12	%	-10.81	%	84,950
San Francisco	—	80,556	-26.84	%	-21.51	%	80,556
Princeton	—	3,078	0.44	%	10.06	%	3,078

	23,883	575,756	-0.03	%	2.12	%	599,639

Boston Properties, Inc.

First Quarter 2004

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q1 2004		2003		2002
Recurring capital expenditures	$	3,211	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		324		4,464		31,908
Hotel improvements, equipment upgrades and replacements		273		2,345		3,218

	$	3,808	$	25,323	$	51,800


*2nd Generation Tenant Improvements and Leasing Commissions (1)* *(in thousands, except per share amounts)*

	Q1 2004		2003		2002
Office
Square feet		494,330		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	26.33	$	14.41	$	20.17

Office/Technical
Square feet		81,426		169,893		347,321

Tenant improvement and lease commissions PSF	$	25.64	$	6.43	$	1.42

Industrial
Square feet		—		—		244,904

Tenant improvement and lease commissions PSF	$	—	$	—	$	0.62

Average tenant improvement and lease commissions PSF	$	26.23	$	13.93	$	16.01

(1)	Based on leases executed during the period.

Boston Properties, Inc.

First Quarter 2004

ACQUISITIONS/DISPOSITIONS

as of March 31, 2004

ACQUISITIONS

For the period from January 1, 2004 through March 31, 2004


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment		Total Investment		Percentage Leased
140 Kendrick Street (remaining 75% interest)	Mar-04	380,987	$	21,552,000	$	—	$	21,552,000	100	%

Total Acquisitions		380,987	$	21,552,000	$	—	$	21,552,000	100	%

DISPOSITIONS

For the period from January 1, 2004 through March 31, 2004


Property	Date Disposed	Square Feet	Gross Sales Price		Book Gain
430 Rozzi Place (1)	Jan-04	20,000	$	2,460,000	$	2,172,000
Hilltop Office Center (1)	Feb-04	142,866		18,000,000		15,494,000
Sugarland Business Park, Building Two	Feb-04	59,215		7,131,000		2,414,000

Total Dispositions		222,081	$	27,591,000	$	20,080,000

(1)	We had a 35.7% interest in these properties, which were consolidated in our financial statements due to the scope and nature of our control. The gains presented are the gross amounts from the sales.

Boston Properties, Inc.

First Quarter 2004

VALUE CREATION PIPELINE—CONSTRUCTION PROGRESS

as of March 31, 2004 (except percentage leased)



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 March 31, 2004		Estimated Future Equity Requirement		Percentage Leased
New Dominion Tech, Building Two	Q3 2004	Q3 2004	Herndon, VA	1	257,400	$	46,111,629	$	67,589,000	$	65,000,000	$	49,533,869	$	—	100	%
Times Square Tower	Q2 2004	Q2 2005	New York, NY	1	1,234,272		520,321,244		653,500,000		475,000,000		360,526,300		—	35	%
901 New York Avenue (25% ownership)	Q3 2004	Q3 2005	Washington, D.C.	1	538,463		29,391,964		44,777,000		30,000,000		14,297,597		—	80	%

Total Development Properties				3	2,030,135	$	595,824,837	$	765,866,000	$	570,000,000	$	424,357,766	$	—	55	%


*DEVELOPMENTS PLACED-IN-SERVICE DURING 2004*

	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Construction Loan		Drawn at March 31, 2004		Estimated Future Equity Requirement		Percentage Leased
Class A Office Building

Total Developments Placed in Service				—	—	$	—	$	—	$	—	$	—	$	—	—

(1)	Includes net revenues during lease-up period and cash component of hedge contracts.

Boston Properties, Inc.

First Quarter 2004

VALUE CREATION PIPELINE—OWNED LAND PARCELS

as of March 31, 2004


Location	No. of Parcels	Acreage	Developable Square Feet
Rockville, MD	3	83.0	1,242,000
Dulles, VA	2	76.6	945,000
Gaithersburg, MD	4	27.0	850,000
San Jose, CA	5	3.7	841,000
Reston, VA	4	43.2	1,602,000
Boston, MA	2	0.5	776,000
Marlborough, MA	1	0.5	170,000
Weston, MA	1	50.0	400,000
Waltham, MA	1	4.3	202,000
Andover, MA	1	74.0	350,000
Washington, D.C.	1	10.0	110,000

	25	372.7	7,488,000


*VALUE CREATION PIPELINE—LAND PURCHASE OPTIONS* *as of March 31, 2004*
Location	No. of Parcels	Acreage	Developable Square Feet
Princeton, NJ (1)	14	149.9	1,900,000
Washington, D.C. (2)	2	4.6	1,432,000
Framingham, MA (3)	1	21.5	300,000
Cambridge, MA (4)	1	2.6	165,000

	18	178.6	3,797,000

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

(2)	One parcel is subject to ground lease. The other parcels’ option expires on 3/16/05 if there is no tenant.

(3)	Subject to ground lease.

(4)	Prior to January 23, 2005, the cost will be $29.52/SF of land area. Land area is approximately 109,000 SF.

Boston Properties, Inc.

First Quarter 2004

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), or 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 (1) the actual aggregate number of outstanding common partnership units of our operating partnership (including common partnership units held by the company) and (2) 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 total 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.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure equal to net income, the most directly comparable GAAP financial measure, plus corporate general and administrative expense, depreciation and amortization, interest expense, minority interest in Operating Partnership, net derivative losses and losses from early extinguishment of debt, less interest income, development and management income, gains from property dispositions, gains on sale from discontinued operations, income from discontinued operations, income from unconsolidated joint ventures and minority interest in property partnerships. In some cases we also present NOI on a cash basis, which is NOI after eliminating the effects of straight-lining of rent. We use NOI internally as a performance measure and believe NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe NOI is a useful measure for evaluating the operating performance of our real estate assets. Our management also uses NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, we believe NOI is useful to investors as a performance measure because, when compared across periods, NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance at the property level. NOI presented by us may not be comparable to NOI reported by other REITs that define NOI differently. We believe that in order to facilitate a clear understanding of our operating results, NOI should be examined in conjunction with net income as presented in our consolidated financial statements. NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of liquidity or ability to make distributions.

In-Service Properties

We treat a property as being “in-service” upon the earlier of (i) lease-up and completion of tenant improvements or (ii) one year after cessation of major construction activity under GAAP. When a property is treated as “in-service”, we cease capitalization of all project costs. The determination when a property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics we specify a single date for treating a property as being “in-service.” Under GAAP a property may be placed in service in stages as construction is completed and the property is held available for occupancy. In accordance with GAAP, when a portion of a property has been substantially completed and occupied or held available for occupancy, we cease capitalization on that portion, though we may not treat the property as being “in-service,” and continue to capitalize only those costs associated with the portion still under construction.

Same Properties

In our analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us through the end of the latest period presented as “same properties.” “Same properties” therefore exclude properties placed in service or acquired after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “same properties.” See pages 18-21 for “in-service properties” which are not included in “same properties.”

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

PRESS RELEASE DATED APRIL 27, 2004

Exhibit 99.2




		Boston Properties, Inc. 111 Huntington Avenue
		Boston, MA 02199 (NYSE: BXP)

AT THE COMPANY		AT FRB/WEBER SHANDWICK
Michael Walsh		Marilynn Meek—General Info.
Vice President, Finance		(212) 445-8431
(617) 236-3410

Kathleen DiChiara		Suzie Pileggi—Media
Investor Relations Manager		(212) 445-8170
(617) 236-3343

BOSTON PROPERTIES, INC. ANNOUNCES

FIRST QUARTER 2004 RESULTS


Reports diluted FFO per share of $0.99		Reports diluted EPS of $0.64

BOSTON, MA, April 27, 2004—Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, today reported results for the first quarter ended March 31, 2004.

Funds from Operations (FFO) for the quarter ended March 31, 2004 were $103.8 million, or $1.03 per share basic and $0.99 per share diluted. This compares to FFO for the quarter ended March 31, 2003 of $102.7 million, or $1.07 per share basic and $1.03 per share diluted before the application of SFAS No. 133, “Accounting for Derivative Instruments and Hedging Activities,” as amended. The weighted average number of basic and diluted shares outstanding totaled 100,890,264 and 110,577,230, respectively, for the quarter ended March 31, 2004 and 95,733,238 and 105,954,957, respectively, for the same quarter last year.

Net income available to common shareholders was $66.0 million for the three months ended March 31, 2004 compared to $185.0 million for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended March 31, 2004 was $0.65 basic and $0.64 on a diluted basis. This compares to EPS for the first quarter of 2003 of $1.93 basic and $1.91 on a diluted basis. EPS includes $0.09 and $1.31 on a diluted basis, related to net gains on sales of properties for the quarters ended March 31, 2004 and 2003, respectively.

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 March 31, 2004. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of March 31, 2004, the Company’s portfolio consisted of 129 properties comprising approximately 43.8 million square feet, including three properties under construction totaling 2.0 million square feet. The overall percentage of leased space for the 123 properties in service as of March 31, 2004 was 92.3%.

As reported in the Company’s proxy statement, the Company is proposing to increase the number of Independent Directors on its Board through the nomination of Carol B. Einiger. Ms. Einiger is currently the Chief Investment Officer of The Rockefeller University.

Significant events of the first quarter include:

•

The Company was selected the #1 Real Estate Company in FORTUNE^® magazine’s 2004 List of America’s Most Admired Companies (3/8/2004).

•

The Company sold the following eleven non-core office/technical and industrial properties aggregating approximately 222,000 square feet:


Date	Property		Sales Price
1/16/04	430 Rozzi Place located in South San Francisco (one building)	(1)	$ 2.5 million
2/4/04	Hilltop Office Center located in South San Francisco (nine buildings)	(1)	$18.0 million
2/10/04	Sugarland Business Park—Building Two located in Herndon, Virginia (one building)		$ 7.1 million

(1)

The Company had a 35.7% interest in this property, which was consolidated in the Company’s financial statements due to the scope and nature of the Company’s control.

•

On January 23, 2004, the Company refinanced its $493.5 million construction loan collateralized by the Times Square Tower property in New York City, which bore interest at LIBOR + 1.95% per annum and was scheduled to mature in November 2004. The new facility totals $475.0 million and is comprised of two tranches. The first tranche consists of a $300.0 million loan commitment which bears interest at LIBOR + 0.90% per annum and matures in January 2006, with a one-year extension option. The second tranche consists of a $175.0 million term loan which bears interest at LIBOR + 1.00% per annum and matures in January 2007.

•

On January 30, 2004, a third party terminated an agreement to enter into a ground lease with the Company, and in connection therewith the Company subsequently received consideration of approximately $7.5 million. As the Company has no further obligations in connection with this agreement such amount is reflected, net of approximately $0.5 million of associated costs, as interest and other revenue in the consolidated statements of operations for the three months ended March 31, 2004.

•

In February 2004, the Company signed two new leases with law firms totaling 131,807 square feet at Times Square Tower. Manatt, Phelps & Phillips, LLP signed a lease for 85,468 square feet and Pitney, Hardin, Kipp & Szuch LLP signed a lease for 46,339 square feet. Manatt, Phelps & Phillips, LLP and Pitney, Hardin, Kipp & Szuch LLP will be joining O’Melveny & Myers and Clarendon National Insurance Company, and will bring the building, which was placed in service in April of this year, to approximately 35% leased.

•

On March 3, 2004, the Company completed a public offering of 5,700,000 shares of its common stock at a price to the public of $51.40 per share. The proceeds from this public offering, net of underwriters’ discount and offering costs, totaled approximately $291.1 million and were used in part to:

•

Repay the mortgage loan collateralized by the Company’s One and Two Reston Overlook properties totaling approximately $65.8 million, together with a prepayment penalty totaling approximately $0.7 million. The mortgage loan bore interest at a fixed rate of 7.45% per annum and was scheduled to mature in August 2004.

•

Repay the mortgage loans collateralized by the Company’s Lockheed Martin and NIMA properties totaling approximately $24.5 million and $20.0 million, respectively, together with prepayment penalties aggregating approximately $5.6 million. The mortgage loans bore interest at fixed rates of 6.61% and 6.51% per annum, respectively, and were scheduled to mature in June 2008.

•

Acquire the remaining outside interests in the Company’s 140 Kendrick Street joint venture properties located in Needham, Massachusetts for cash of $21.6 million and the assumption of the outside partner’s share of the mortgage debt on the properties of approximately $41.6 million. For 2004, the Company projects these properties’ Annualized Unleveraged FFO Return to be 11.9% and Annualized Unleveraged Cash Return to be 10.9%. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2004 Returns on Acquisitions.” There can be no assurances that actual returns will not differ materially from these projections.

Transactions completed subsequent to March 31, 2004:

•

The Company sold the following three buildings aggregating approximately 250,000 square feet and two land parcels, one of which is subject to a ground lease:


Date	Property	Sales Price
4/1/04	Decoverly Two, Three, Six and Seven located in Rockville, Maryland (two buildings and two land parcels)	$42.0 million
4/1/04	The Arboretum located in Reston, Virginia (one building)	$21.5 million

•

On April 1, 2004, the Company acquired 1330 Connecticut Avenue, a 259,000 square foot Class-A office property in Washington, D.C. at a purchase price of approximately $86.6 million. In addition, the Company paid approximately $1.4 million of closing costs and will be obligated to fund an additional $9.2 million for tenant and capital improvements during approximately the first two years of ownership. The acquisition was financed with the assumption of mortgage indebtedness secured by the property totaling approximately $52.4 million, which bears interest at a fixed rate of 7.58% per annum and matures in 2011, and available cash from the Company’s stock offering discussed above. The Company projects this property’s Annualized Unleveraged FFO Return to be 10.6% and Annualized Unleveraged Cash Return to be 8.7% after completion of the tenant and capital improvement obligations. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2004 Returns on Acquisitions.” There can be no assurances that actual returns will not differ materially from these projections.

EPS and FFO Per Share Guidance:

The Company’s guidance for the second quarter of 2004 and the full year 2004 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.


	Second Quarter 2004					Full Year 2004
	Low		—	High		Low		—	High

Projected EPS (diluted)	$	0.74	—	$	0.76	$	2.70	—	$	2.77
Add:
Projected Company Share of Real Estate Depreciation and Amortization	$	0.40	—	$	0.40	$	1.68	—	$	1.68
Less:
Gains on Sales of Real Estate	$	0.15	—	$	0.16	$	0.35	—	$	0.35

Projected FFO per Share (diluted)	$	0.99	—	$	1.00	$	4.03	—	$	4.10

The foregoing estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and earnings impact of the events referenced in this release. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses associated with disposition activities. 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, April 28, 2004 at 10:00 AM (Eastern Time), open to the general public, to discuss the first quarter 2004 results, the 2004 projections and other related matters. The number to call for this interactive teleconference is (800) 218-8862. A replay of the conference call will be available through May 5, 2004 by dialing (800) 405-2236 and entering the passcode 575142. An

audio-webcast will also be archived and may be accessed at www.bostonproperties.com in the Investors section under the heading Audio Archive.

Additionally, a copy of Boston Properties’ first quarter 2004 “Supplemental Operating and Financial Data” and this press release are available in the Investors 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 can identify these statements by our use of the words “guidance,” “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. 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, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, including its guidance for the second quarter of 2004 and the full year 2004.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended March 31,
	2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	255,590		$	245,473
Recoveries from tenants		40,834			39,479
Parking and other		13,198			14,195

Total rental revenue		309,622			299,147
Hotel revenue		13,178			13,246
Development and management services		3,326			4,590
Interest and other		7,528			415

Total revenue		333,654			317,398

Expenses
Operating:
Rental		101,032			98,397
Hotel		11,678			11,171
General and administrative		12,600			11,399
Interest		74,305			73,645
Depreciation and amortization		56,477			49,472
Net derivative losses		—			932
Losses from early extinguishments of debt		6,258			1,474

Total expenses		262,350			246,490

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		71,304			70,908
Minority interests in property partnerships		328			428
Income from unconsolidated joint ventures		1,377			2,658

Income before minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		73,009			73,994
Minority interest in Operating Partnership		(17,248	)		(18,313	)

Income before gains on sales of real estate and discontinued operations		55,761			55,681
Gains on sales of real estate, net of minority interest		6,698			52,912

Income before discontinued operations		62,459			108,593
Discontinued Operations:
Income from discontinued operations, net of minority interest		1,068			2,924
Gains on sales of real estate from discontinued operations, net of minority interest		2,521			73,528

Net income available to common shareholders	$	66,048		$	185,045

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.62		$	1.13
Discontinued operations, net of minority interest		0.03			0.80

Net income available to common shareholders	$	0.65		$	1.93

Weighted average number of common shares outstanding		100,890			95,733

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.61		$	1.12
Discontinued operations, net of minority interest		0.03			0.79

Net income available to common shareholders	$	0.64		$	1.91

Weighted average number of common and common equivalent shares outstanding		103,490			96,755

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	March 31, 2004			December 31, 2003
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	8,272,848		$	8,202,958
Development in progress		579,751			542,600
Land held for future development		228,361			232,098
Real estate held for sale, net		42,449			5,604
Less: accumulated depreciation		(1,047,911	)		(1,001,435	)

Total real estate		8,075,498			7,981,825
Cash and cash equivalents		182,151			22,686
Cash held in escrows		25,666			21,321
Tenant and other receivables, net of allowance for doubtful accounts of $2,471 and $3,157, respectively		14,962			18,425
Accrued rental income, net of allowance of $4,777 and $5,030, respectively		202,604			189,852
Deferred charges, net		196,598			188,855
Prepaid expenses and other assets		56,001			39,350
Investments in unconsolidated joint ventures		83,555			88,786

Total assets	$	8,837,035		$	8,551,100

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,440,351		$	3,471,400
Unsecured senior notes, net of discount		1,470,410			1,470,320
Unsecured line of credit		—			63,000
Accounts payable and accrued expenses		110,002			92,026
Dividends and distributions payable		89,166			84,569
Interest rate contracts		6,417			8,191
Accrued interest payable		41,984			50,931
Other liabilities		79,390			80,367

Total liabilities		5,237,720			5,320,804

Commitments and contingencies		—			—

Minority interests		851,901			830,133

Stockholders’ equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 106,521,898 and 98,309,077 shares issued and 106,442,998 and 98,230,177 shares outstanding in 2004 and 2003, respectively		1,064			982
Additional paid-in capital		2,453,215			2,104,158
Earnings in excess of dividends		319,890			320,900
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(7,872	)		(6,820	)
Accumulated other comprehensive loss		(16,161	)		(16,335	)

Total stockholders’ equity		2,747,414			2,400,163

Total liabilities and stockholders’ equity	$	8,837,035		$	8,551,100

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS(1)


	Three months ended March 31,
	2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	66,048		$	185,045
Add:
Minority interest in Operating Partnership		17,248			18,313
Less:
Minority interests in property partnerships		328			428
Income from unconsolidated joint ventures		1,377			2,658
Gains on sales of real estate, net of minority interest		6,698			52,912
Income from discontinued operations, net of minority interest		1,068			2,924
Gains on sales of real estate from discontinued operations, net of minority interest		2,521			73,528

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		71,304			70,908
Add:
Real estate depreciation and amortization		57,873			51,791
Income from discontinued operations		1,302			3,580
Income from unconsolidated joint ventures		1,377			2,658
Loss from early extinguishment of debt associated with sales of real estate		—			1,474
Less:
Minority interests in property partnerships' share of funds from operations		(904	)		(866	)
Preferred distributions		(4,385	)		(5,771	)

Funds from operations		126,567			123,774
Add:
Net derivative losses (SFAS No. 133)		—			932

Funds from operations before net derivative losses (SFAS No. 133)	$	126,567		$	124,706

Funds from operations available to common shareholders before net derivative losses (SFAS No. 133)	$	103,831		$	102,735

Weighted average shares outstanding—basic		100,890			95,733

FFO per share basic before net derivative losses (SFAS No. 133)	$	1.03		$	1.07

FFO per share basic after net derivative losses (SFAS No. 133)	$	1.03		$	1.07

Weighted average shares outstanding—diluted		110,577			105,955

FFO per share diluted before net derivative losses (SFAS No. 133)	$	0.99		$	1.03

FFO per share diluted after net derivative losses (SFAS No. 133)	$	0.99		$	1.02

(1)

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. 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.

BOSTON PROPERTIES, INC.

PROJECTED 2004 RETURNS ON ACQUISITIONS


	1330 Connecticut Avenue			140 Kendrick Street (1)
	(dollars in thousands)
Base rent and recoveries from tenants	$	8,871		$	7,966
Straight-line rent		558			637
Fair value lease revenue		877			—
Parking		264			—

Total rental revenue		10,570			8,603
Operating Expenses		2,829			1,200

Revenue less Operating Expenses		7,741			7,403
Interest expense		(3,017	)		(3,115	)
Fair value interest adjustment		876			617
Depreciation and amortization		(2,422	)		(1,816	)

Net income	$	3,178		$	3,089
Add:
Interest expense		2,141			2,498
Depreciation and amortization		2,422			1,816

Unleveraged FFO	$	7,741		$	7,403
Less:
Straight-line rent		(558	)		(637	)
Fair value lease revenue		(877	)		—

Unleveraged Cash	$	6,306		$	6,766
Cash	$	34,221		$	21,551
Total debt		52,386			55,509
Existing equity		—			5,283
Closing costs		1,360			280
Tenant and capital improvement obligation		9,165			—

Total Investment	$	97,132		$	82,623
Annualized Unleveraged FFO Return (2)		10.6	%		11.9	%
Annualized Unleveraged Cash Return (3)		8.7	%		10.9	%

(1)	Reflects 100% of the operations of 140 Kendrick Street. Prior to the acquisition of the remaining outside interest, the Company reflected its share of operations through “income from unconsolidated joint ventures” in its statements of operations.

(2)

Annualized Unleveraged FFO Return is determined by dividing the annualized Unleveraged FFO based on projected results for the nine months ending December 31, 2004 by Total Investment. Other real estate companies may calculate this return differently. Management believes projected annualized Unleveraged FFO Return is a useful measure in the real estate industry when determining the appropriate purchase price for a property or estimating a property’s value. When evaluating acquisition opportunities, management considers, among other factors, projected annualized Unleveraged FFO Return because it excludes, among other items, interest expense (which may vary depending on the level of corporate debt or proprety-specific debt), as well as depreciation and amortization expense (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates). In addition, management considers its cost of capital and available financing alternatives in making decisions concerning acquisitions.

(3)

Annualized Unleveraged Cash Return is determined by dividing the annualized Unleveraged Cash based on projected results for the nine months ending December 31, 2004 by Total Investment. Other real estate companies may calculate this return differently. Management believes that projected annualized Unleveraged Cash Return is also a useful measure of a property’s value when used in addition to annualized Unleveraged FFO Return because it eliminates the effect of straight-lining of rent and the FAS 141 treatment of in-place above and below market leases which over the forecasted period enables an investor to assess the cash on cash return from the property.

Management is presenting these projected returns and related calculations to assist investors in analyzing the Company’s recent acquisitions. Management does not intend to present this data for any other purpose, for any other period or for its other properties, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. The Company does not undertake a duty to update any of these projections.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	March 31, 2004		December 31, 2003
Greater Boston	89.2	%	88.9	%
Greater Washington, D.C.	96.6	%	95.1	%
Midtown Manhattan	98.9	%	99.4	%
Baltimore, MD	96.0	%	95.1	%
Richmond, VA	91.7	%	89.2	%
Princeton/East Brunswick, NJ	92.5	%	93.4	%
Greater San Francisco	81.3	%	82.4	%
Bucks County, PA	100.0	%	100.0	%

Total Portfolio	92.3	%	92.1	%


	% Leased by Type
	March 31, 2004		December 31, 2003
Class A Office Portfolio	92.6	%	92.7	%
Office/Technical Portfolio	94.8	%	89.4	%
Industrial Portfolio	56.9	%	56.6	%

Total Portfolio	92.3	%	92.1	%