SEC Filing

View:

Download DOC

Download PDF

Download XLS

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):

July 20, 2004

Boston Properties, Inc.

(Exact name of Registrant as specified in its charter)


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

111 Huntington Avenue

Boston, Massachusetts 02199

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code:

(617) 236-3300

ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.


Exhibit No.
99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2004.

99.2		Press release dated July 20, 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 July 20, 2004, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the second 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.


Date: July 20, 2004	BOSTON PROPERTIES, INC.

		/s/ Douglas T. Linde
	By:	Douglas T. Linde
		Chief Financial Officer

Supplemental Operating and Financial Data

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2004

Boston Properties, Inc.

Second Quarter 2004

Table of Contents


		*Page*
Company Profile		3
Investor Information		4
Research Coverage		5
Financial Highlights		6
Consolidated Balance Sheets		7
Consolidated Income Statements		8
Funds From Operations		9
Funds Available for Distribution and Interest Coverage Ratios		10
Discontinued Operations		11
Capital Structure		12
Debt Analysis		13-15
Unconsolidated Joint Ventures		16-17
Portfolio Overview-Square Footage		18
In-Service Property Listing		19-22
Top 20 Tenants and Tenant Diversification		23
Office Properties-Lease Expiration Roll Out		24
Office/Technical Properties-Lease Expiration Roll Out		25
Industrial Properties-Lease Expiration Roll Out		26
Retail Properties - Lease Expiration Roll Out		27
Grand Total - Office, Office/Technical, Industrial and Retail Properties		28
Greater Boston Area Lease Expiration Roll Out		29-30
Washington, D.C. Area Lease Expiration Roll Out		31-32
San Francisco Area Lease Expiration Roll Out		33-34
Midtown Manhattan Area Lease Expiration Roll Out		35-36
Princeton Area Lease Expiration Roll Out		37-38
Other Properties Lease Expiration Roll Out		39-40
CBD/Suburban Lease Expiration Roll Out		41-42
Hotel Performance		43
Occupancy Analysis		44
Same Property Performance		45
Reconciliation to Same Property Performance and Net Income		46-47
Leasing Activity		48
Capital Expenditures, Tenant Improvements and Leasing Commissions		49
Acquisitions/Dispositions		50
Value Creation Pipeline - Construction in Progress		51
Value Creation Pipeline - Land Parcels and Purchase Options		52
Definitions		53

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.

Second Quarter 2004

COMPANY PROFILE

The Company

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. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997. 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 is comprised primarily of first-class office space but also includes hotels and industrial buildings. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record in developing premium Central Business District (CBD) office buildings, suburban office centers and build-to-suit projects for the U.S. Government and a diverse array of high-credit tenants.

Management

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 sixteen 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’ Board of Directors consists of ten distinquished members, the majority of which serve as Independant Directors.

Strategy

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its stockholders with the greatest possible total return. To achieve this objective, the Company maintains a consistant strategy, which includes: Concentrating on a few carefully selected markets - 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; selectively acquiring assets which increase its penetration in these select markets; taking on complex, technically-challenging projects that leverage the skills of its management team to successfully develop, acquire, and reposition properties; exploring joint-venture opportunities primarily with existing owners of land parcels who seek to benefit from the Company’s depth of development and management expertise; pursuing the sale of properties (on a selective basis) to take advantage of its value creation and the demand for its premier properties; and continuing to enhance the Company’s balanced capital structure through its access to a variety of capital sources.

Snapshot

(as of June 30, 2004)


Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		12/31
Total Properties		126
Total Square Feet		43.6 million
Common Shares and Units Outstanding (as converted)		135.9 million
Dividend — Quarter/Annualized		$0.65/$2.60
Dividend Yield		5.19%
Total Market Capitalization		$11.8 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Second Quarter 2004

INVESTOR INFORMATION


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

Edward H. Linde	Alan J. Patricof	Raymond A. Ritchey	Robert E. Pester
President and Chief Executive Officer, Director	Director, Chairman of Audit Committee	Executive Vice President, National Director of Acquisitions & Development	Senior Vice President, Manager of San Francisco Office

Lawrence S. Bacow	Richard E. Salomon	Douglas T. Linde	Mitchell S. Landis
Director	Director, Chairman of Compensation Committee	Senior Vice President, Chief Financial Officer, and Treasurer	Senior Vice President, Manager of Princeton Office

William M. Daley	Martin Turchin	Bryan J. Koop	Frank D. Burt
Director, Chairman of Nominating & Corporate Governance Committee	Director	Senior Vice President, Manager of Boston Office	Senior Vice President, General Counsel

Carol B. Einiger	David A. Twardock	Robert E. Selsam	Arthur S. Flashman
Director	Director	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 investor_relations@bostonproperties.com www.bostonproperties.com	Financial inquiries should be directed to Michael Walsh, Vice President, Finance, at 617.236.3410 or mwalsh@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 the following characteristics (based on information reported by the New York Stock Exchange):


	Q2 2004			Q1 2004			Q4 2003			Q3 2003			Q2 2003
High Price	$	55.54		$	54.89		$	48.47		$	45.50		$	44.83
Low Price	$	43.63		$	46.69		$	43.40		$	41.26		$	38.00
Average Price	$	48.15		$	51.06		$	46.02		$	43.35		$	41.36
Closing Price, at the end of the quarter	$	50.08		$	54.31		$	48.19		$	43.47		$	43.80
Dividends per share - annualized (1)	$	2.60		$	2.52		$	2.52		$	2.52		$	2.52
Closing dividend yield - annualized		5.19	%		4.64	%		5.23	%		5.80	%		5.75	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		135,889			135,582			127,683			127,037			126,605
Closing market value of shares and units outstanding (thousands)	$	6,805,321		$	7,363,458		$	6,153,044		$	5,522,298		$	5,545,299

(1)

Reflects dividend increase from $0.63 per share to $0.65 per share - effective Q2 2004.

Timing

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


Third Quarter		Late October
Fourth Quarter		Late January

Boston Properties, Inc.

Second Quarter 2004

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage

David Aubuchon	David Shulman / David Toti	Chris Brown	Mark Streeter
A.G. Edwards & Sons, Inc.	Lehman Brothers	Banc of America Securities, LLC	J.P. Morgan Securities, Inc.
314.955.5452	212.526.3413 / 212.526.2002	704.386.2524	212.834.5086

Ross Smotrich / Michael Marron Bear Stearns & Company, Inc. 212.272.8046 / 212.272.7424	Steve Sakwa / Brian Legg Merill Lynch & Company, Inc. 212.449.0335 / 212.449.1153	Susan Berliner / Dan Mooney Bear Stearns & Company, Inc. 212.272.3824 / 212.272.0217	John Forrey Merrill Lynch & Company, Inc. 212.449.1812



Louis Taylor / Christoper Capolongo Deutsche Bank Securities, Inc. 212.250.4912 / 212.250.7726	Gregory Whyte / David Cohen Morgan Stanley & Company, Inc. 212.761.6331 / 212.761.8564	Erich Marriott BNP Paribas Securities Corp (NA) 212.841.3186	Thomas Cook Smith Barney Citigroup 212.723.1112



David Loeb / Gustavo Sarago Friedman, Billings, Ramsey & Co., Inc. 703.469.1289 / 703.469.1042	James Sullivan / James Feldman Prudential Equity Group, Inc. 212.778.2515 / 212.778.1724	Thierry Perrein Credit Suisse First Boston, Inc. 212.538.8618



Carey Callaghan / Allison Widman	Jay Leupp / David Copp	Scott O’Shea
Goldman Sachs & Company	RBC Capital Markets (US)	Deutsche Bank Securities, Inc.
212.902.4351 / 212.902.2796	415.633.8588 / 415.633.8558	212.250.7190

		Rating Agencies:

Jim Sullivan	Jonathan Litt / John Stewart	William Travers
Green Street Advisors, Inc.	Smith Barney Citigroup	Fitch Ratings
949.640.8780	212.816.0231 / 212.816.1685	212.908.0304

Anthony Paolone / Michael Mueller	Keith Mills UBS Securities, LLC 212.713.3098	Karen Nickerson Moody’s Investors Service 212.553.4924
J.P. Morgan Securities, Inc.
212.622.6682 / 212.622.6689

Francis Greywitt		James Fielding
KeyBanc Capital Markets		Standard & Poor’s
216.443.4795		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.

Second 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 53.


	Three Months Ended
	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003
Income Items:

Revenue	$	345,133		$	333,595		$	334,231		$	328,410		$	321,095
Straight line rent (SFAS 13)	$	13,487		$	11,620		$	14,536		$	12,144		$	10,687
Fair value lease revenue (SFAS 141) (1)	$	268		$	(83	)	$	(53	)	$	(577	)	$	(167	)
Lease termination fees (included in revenue) (2)	$	—		$	1,558		$	1,401		$	1,735		$	1,419
Capitalized interest	$	3,539		$	4,831		$	5,192		$	4,954		$	4,601
Capitalized wages	$	1,565		$	1,357		$	1,209		$	1,288		$	1,325
Operating Margins [(rental revenue - rental expenses)/rental revenue] (3)		69.4	%		69.6	%		69.5	%		67.1	%		70.1	%
Net income available to common shareholders	$	87,118		$	66,048		$	60,592		$	56,970		$	63,236

Funds from operations (FFO) available to common shareholders before net derivative gains/losses (4)	$	116,904		$	103,831		$	106,931		$	99,057		$	103,360

FFO per share before net derivative gains/losses - diluted (4)	$	1.05		$	0.99		$	1.05		$	0.98		$	1.03
Net income available to common shareholders per share - basic	$	0.81		$	0.65		$	0.62		$	0.59		$	0.66
Net income available to common shareholders per share -diluted	$	0.80		$	0.64		$	0.61		$	0.57		$	0.64
Dividends per share	$	0.65		$	0.63		$	0.63		$	0.63		$	0.63
Funds available for distribution to common shareholder and common unitholder (FAD) (5)	$	109,181		$	98,135		$	85,496		$	100,842		$	103,981

Ratios:

Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.72			2.64			2.65			2.55			2.64
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		3.73			2.48			2.48			2.39			2.48
FFO Payout Ratio (7)		61.90	%		63.64	%		60.00	%		64.29	%		61.17	%
FAD Payout Ratio (8)		77.52	%		82.49	%		88.86	%		74.33	%		71.14	%

	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003
Capitalization:

Total Debt	$	4,994,703		$	4,910,761		$	5,004,720		$	4,920,343		$	4,819,282
Price @ Quarter End	$	50.08		$	54.31		$	48.19		$	43.47		$	43.80
Equity Value @ Quarter End	$	6,805,321		$	7,363,458		$	6,153,044		$	5,522,298		$	5,545,299
Total Market Capitalization (9)	$	11,800,024		$	12,274,219		$	11,157,764		$	10,442,641		$	10,364,581
Debt/Total Market Capitalization (9)		42.33	%		40.01	%		44.85	%		47.12	%		46.50	%

(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)	Does not include the Company’s share of termination income earned from unconsolidated joint ventures totaling $613 for the three months ended June 30, 2004. Please see page 16 for termination income earned from unconsolidated joint ventures.

(3)

Rental Expenses include operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $5,900, $6,370, $6,620, $8,742 and $6,459 for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

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

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

(6)	For additional detail, see page 10.

(7)	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.

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

(9)	For additional detail, see page 53.

Boston Properties, Inc.

Second Quarter 2004

CONSOLIDATED BALANCE SHEETS

(in thousands)


	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
ASSETS
Real estate	$	8,427,296		$	8,272,848		$	8,202,958		$	8,060,525		$	7,863,035
Construction in progress		606,012			579,751			542,600			481,571			445,003
Land held for future development		230,155			228,361			232,098			232,361			218,045
Real estate held for sale		5,756			42,449			5,604			—			—
Less accumulated depreciation		(1,099,715	)		(1,047,911	)		(1,001,435	)		(952,754	)		(893,246	)

Total real estate		8,169,504			8,075,498			7,981,825			7,821,703			7,632,837
Cash and cash equivalents		227,698			182,151			22,686			37,621			158,587
Escrows		27,888			25,666			21,321			27,992			18,187
Tenant and other receivables, net		11,637			14,962			18,425			21,813			21,185
Accrued rental income, net		215,536			202,604			189,852			175,063			160,586
Deferred charges, net		212,666			196,598			188,855			178,819			168,833
Prepaid expenses and other assets		33,388			56,001			39,350			57,012			22,090
Investments in unconsolidated joint ventures		83,950			83,555			88,786			88,632			93,904

Total assets	$	8,982,267		$	8,837,035		$	8,551,100		$	8,408,655		$	8,276,209

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,524,202		$	3,440,351		$	3,471,400		$	3,450,112		$	3,349,134
Unsecured senior notes, net of discount		1,470,501			1,470,410			1,470,320			1,470,231			1,470,148
Unsecured line of credit		—			—			63,000			—			—
Accounts payable and accrued expenses		91,790			110,002			92,026			69,940			49,299
Dividends and distributions payable		91,350			89,166			84,569			83,972			84,030
Interest rate contracts		4,800			6,417			8,191			9,875			12,677
Accrued interest payable		50,318			41,984			50,931			44,010			56,088
Other liabilities		89,145			79,390			80,367			69,242			63,771

Total liabilities		5,322,106			5,237,720			5,320,804			5,197,382			5,085,147

Commitments and contingencies		—			—			—			—			—

Minority interests		804,172			851,901			830,133			829,779			857,058

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, 108,160,487, 106,442,998, 98,230,177, 97,577,665 and 97,028,911 outstanding, respectively		1,082			1,064			982			976			970
Additional paid-in capital		2,544,278			2,453,215			2,104,158			2,084,490			2,032,952
Earnings in excess of dividends		336,704			319,890			320,900			322,530			327,222
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(7,367	)		(7,872	)		(6,820	)		(7,271	)		(7,734	)
Accumulated other comprehensive loss		(15,986	)		(16,161	)		(16,335	)		(16,509	)		(16,684	)

Total stockholders’ equity		2,855,989			2,747,414			2,400,163			2,381,494			2,334,004

Total liabilities and stockholders’ equity	$	8,982,267		$	8,837,035		$	8,551,100		$	8,408,655		$	8,276,209

Boston Properties, Inc.

Second Quarter 2004

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Jun-04			31-Mar-04			31-Dec-03			30-Sep-03			30-Jun-03
Revenue:
Rental
Base Rent	$	265,397		$	255,540		$	256,638		$	251,667		$	246,943
Recoveries from tenants		39,421			40,825			37,882			41,252			36,902
Parking and other		14,094			13,198			12,213			13,244			13,945

Total rental revenue		318,912			309,563			306,733			306,163			297,790
Hotel revenues		19,166			13,178			22,082			17,542			17,213
Development and management services		5,965			3,326			4,550			3,616			5,429
Interest and other		1,090			7,528	(1)		866			1,089			663

Total revenue		345,133			333,595			334,231			328,410			321,095

Expenses:
Operating		60,298			61,088			58,390			65,908			57,349
Real estate taxes		41,566			39,880			39,965			40,261			37,641
Hotel operating		13,376			11,678			15,992			12,829			12,258
General and administrative		12,493			12,600			11,749			11,183			11,028
Interest (2)		74,789			74,305			75,001			75,343			75,447
Depreciation and amortization		60,737			56,327			55,877			53,037			50,323
Net derivative (gains)/losses		—			—			—			(885	)		991
Loss from early extinguishment of debt		—			6,258			—			—			—

Total expenses		263,259			262,136			256,974			257,676			245,037

Income before minority interests and income from unconsolidated joint ventures		81,874			71,459			77,257			70,734			76,058
Minority interest in property partnerships		1,238			328			313			593			268
Income from unconsolidated joint ventures		879			1,377			662			1,343			1,353

Income before minority interest in Operating Partnership		83,991			73,164			78,232			72,670			77,679
Minority interest in Operating Partnership (3)		(17,908	)		(17,276	)		(18,696	)		(17,923	)		(18,924	)

Income before gains on sales of real estate and other assets		66,083			55,888			59,536			54,747			58,755
Gains on sales of real estate and other assets, net of minority interest		1,377			6,698			—			1,341			3,546

Income before discontinued operations		67,460			62,586			59,536			56,088			62,301
Income from discontinued operations, net of minority interest		69			941			1,056			882			935
Gains on sales of real estate from discontinued operations, net of minority interest		19,589			2,521			—			—			—

Net income available to common shareholders	$	87,118		$	66,048		$	60,592		$	56,970		$	63,236

INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	0.81		$	0.65		$	0.62		$	0.59		$	0.66

Net income available to common shareholders per share - diluted	$	0.80		$	0.64		$	0.61		$	0.57		$	0.64

(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 $3,539, $4,831, $5,192, $4,954 and $4,601 for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003, and June 30, 2003, respectively.

(3)

Equals minority interest share of 16.96%, 17.96%, 18.59%, 18.08% and 17.45% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

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

Boston Properties, Inc.

Second Quarter 2004

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Jun-04		31-Mar-04		31-Dec-03		30-Sep-03			30-Jun-03
Net income available to common shareholders	$	87,118	$	66,048	$	60,592	$	56,970		$	63,236
Add:
Minority interest in Operating Partnership		17,908		17,276		18,696		17,923			18,924
Less:
Minority interest in property partnerships		1,238		328		313		593			268
Income from unconsolidated joint ventures		879		1,377		662		1,343			1,353
Gain on sales of real estate and other assets, net of minority interest		1,377		6,698		—		1,341			3,546
Income from discontinued operations, net of minority interest		69		941		1,056		882			935
Gain on sales of real estate from discontinued operations, net of minority interest		19,589		2,521		—		—			—

Income before minority interests and income from unconsolidated joint ventures		81,874		71,459		77,257		70,734			76,058
Add:
Real estate depreciation and amortization (1)		61,919		57,873		57,500		54,606			52,338
Income from discontinued operations		83		1,147		1,319		1,106			1,157
Income from unconsolidated joint ventures		879		1,377		662		1,343			1,353
Less:
Minority property partnership’s share of funds from operations		158		904		945		805			842
Preferred dividends and distributions		3,813		4,385		4,443		5,183			5,852

Funds from operations (FFO)		140,784		126,567		131,350		121,801			124,212
Add (subtract):
Net derivative gains/losses		—		—		—		(885	)		991

FFO before net derivative gains/losses	$	140,784	$	126,567	$	131,350	$	120,916		$	125,203

FFO available to common shareholders before net derivative gains/losses (2)	$	116,904	$	103,831	$	106,931	$	99,057		$	103,360

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

Weighted average shares outstanding - basic		107,216		100,890		97,945		97,360			96,531

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

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

Weighted average shares outstanding - diluted		115,208		110,577		107,188		107,231			107,408

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 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	$	140,784	129,116	$	126,567	122,983	$	131,350	120,312	$	120,916	118,846	$	125,203	116,931
Effect of Dilutive Securities
Convertible Pre- ferred Units		3,813	6,192		4,385	7,087		4,443	7,087		5,183	8,047		5,852	9,195
Stock Options and other		—	1,800		—	2,599		—	2,155		—	1,823		—	1,682

Diluted FFO before net derivative gains/losses	$	144,597	137,108	$	130,952	132,669	$	135,793	129,554	$	126,099	128,716	$	131,055	127,808

Company’s share of diluted FFO before net derivative gains/losses (3)	$	121,500	115,208	$	109,146	110,577	$	112,349	107,188	$	105,051	107,231	$	110,137	107,408

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

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

(1)

Real estate depreciation includes the Company’s share of unconsolidated joint venture real estate depreciation of $1,683, $1,697, $1,874, $1,821 and $2,266 less corporate related depreciation of $617, $617, $703, $670 and $670 for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

(2)	Based on weighted average shares for the quarter. Company’s share for the quarter ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003 was 83.04%, 82.04%, 81.41%, 81.92% and 82.55%, respectively.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003 was 84.03%, 83.35%, 82.74%, 83.31% and 84.04%, respectively.

Boston Properties, Inc.

Second Quarter 2004

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003
Funds from operations (FFO) before net derivative gains/losses (see page 9)	$	140,784		$	126,567		$	131,350		$	120,916		$	125,203
2nd generation tenant improvements and leasing commissions		(17,693	)		(15,102	)		(23,190	)		(5,606	)		(6,105	)
Straight-line rent		(13,487	)		(11,620	)		(14,536	)		(12,144	)		(10,687	)
Recurring capital expenditures		(4,138	)		(3,211	)		(8,413	)		(3,415	)		(4,726	)
Fair value interest adjustment		(787	)		(340	)		(337	)		(261	)		(343	)
Fair value lease revenue (SFAS 141)		(268	)		83			53			577			167
Hotel improvements, equipment upgrades and replacements		(228	)		(273	)		(676	)		(353	)		(911	)
Non real estate depreciation		617			617			703			670			670
Stock-based compensation		933			1,279			451			434			713
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		3,448			135			91			24			—
		3,448			135			91			24			—

Funds available for distribution to common shareholder and common unitholders (FAD)	$	109,181		$	98,135		$	85,496		$	100,842		$	103,981

Interest Coverage Ratios

(in thousands, except for ratio amounts)


	Three Months Ended
	June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003			June 30, 2003
*Excluding Capitalized Interest*

Income before minority interests and income from unconsolidated joint ventures	$	81,874		$	71,459		$	77,257		$	70,734		$	76,058
Interest expense		74,789			74,305			75,001			75,343			75,447
Depreciation		60,737			56,327			55,877			53,037			50,323
Depreciation from joint ventures		1,683			1,697			1,874			1,821			2,266
Income from unconsolidated joint ventures		879			1,377			662			1,343			1,353
Discontinued Operations - depreciation		116			466			452			418			419
Discontinued operations		83			1,147			1,319			1,106			1,157
Straight-line rent		(13,487	)		(11,620	)		(14,536	)		(12,144	)		(10,687	)
Net derivative (gains)/losses		—			—			—			(885	)		991
Fair value lease revenue (SFAS 141)		(268	)		83			53			577			167

Subtotal		206,406			195,241			197,959			191,350			197,494
Divided by:
Interest expense (1)		73,683			73,305			73,975			74,214			74,077
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		73,683			73,305			73,975			74,214			74,077

Interest Coverage Ratio		2.80			2.66			2.68			2.58			2.67

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	81,874		$	71,459		$	77,257		$	70,734		$	76,058
Discontinued operations		83			1,147			1,319			1,106			1,157
Interest expense		74,789			74,305			75,001			75,343			75,447
Depreciation		60,737			56,327			55,877			53,037			50,323
Depreciation from joint ventures		1,683			1,697			1,874			1,821			2,266
Income from unconsolidated joint ventures		879			1,377			662			1,343			1,353
Net derivative (gains)/losses		—			—			—			(885	)		991
Fair value lease revenue (SFAS 141)		(268	)		83			53			577			167
Straight-line rent		(13,487	)		(11,620	)		(14,536	)		(12,144	)		(10,687	)
Discontinued Operations - depreciation		116			466			452			418			419

Subtotal		206,406			195,241			197,959			191,350			197,494
Divided by:
Interest expense (1) (2)		77,222			78,136			79,167			79,168			78,678
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		77,222			78,136			79,167			79,168			78,678

Interest Coverage Ratio		2.67			2.50			2.50			2.42			2.51

(1)	Excludes amortization of financing costs of $1,106, $1,000, $1,026, $1,129 and $1,370 for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

(2)	Includes capitalized interest of $3,539, $4,831, $5,192, $4,954 and $4,601 for the quarters ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

Boston Properties, Inc.

Second Quarter 2004

DISCONTINUED OPERATIONS

(in thousands, unaudited)

Effective January 1, 2002, the Company adopted the provisions of SFAS No. 144, “Accounting for the Impairment or Disposal of Long-Lived Assets.” The Company’s application of SFAS No. 144 results in the presentation of the net operating results of these qualifying properties sold or held for sale during 2004 and 2003 as income from discontinued operations for all periods presented. The following table summarizes income from discontinued operations (net of minority interest) for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.


	Three Months Ended
	30-Jun-04		31-Mar-04		31-Dec-03		30-Sep-03		30-Jun-03
Total Revenue (1)	$	248	$	1,991	$	2,335	$	2,759	$	2,275

Expenses:
Operating		49		378		564		1,235		699
Depreciation and amortization		116		466		452		418		419

Total Expenses		165		844		1,016		1,653		1,118

Income before minority interests		83		1,147		1,319		1,106		1,157

Minority interest in property partnership		—		—		21		30		23
Minority interest in Operating Partnership		14		206		242		194		199

Income from discontinued operations (net of minority interest)	$	69	$	941	$	1,056	$	882	$	935

Properties:
		Sugarland Business Park - Building One 38 Cabot Boulevard The Arboretum Decoverly Two, Three, Six and Seven		Sugarland Business Park - Building One 38 Cabot Boulevard The Arboretum Decoverly Two, Three, Six and Seven Sugarland Business Park - Building Two 430 Rozzi Place		Sugarland Business Park - Building One 38 Cabot Boulevard The Arboretum Decoverly Two, Three, Six and Seven Sugarland Business Park - Building Two 430 Rozzi Place		Sugarland Business Park - Building One 38 Cabot Boulevard The Arboretum Decoverly Two, Three, Six and Seven Sugarland Business Park - Building Two 430 Rozzi Place		Sugarland Business Park - Building One 38 Cabot Boulevard The Arboretum Decoverly Two, Three, Six and Seven Sugarland Business Park - Building Two 430 Rozzi Place

(1)	The impact of the straight-line rent adjustment increased (decreased) revenue by $66, ($19), ($28), $6 and $16 for the three months ended June 30, 2004, March 31, 2004, December 31, 2003, September 30, 2003 and June 30, 2003, respectively.

Boston Properties, Inc.

Second Quarter 2004

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal June 30, 2004
Mortgage Notes Payable	$	3,524,202
Unsecured Line of Credit		—
Unsecured Senior Notes, net of discount		1,470,501

Total Debt	$	4,994,703

BPLP Unsecured Senior Notes


													Total/Average
Settlement Date		5/22/03			3/18/03			1/17/03			12/13/2002
Principal Amount	$	250,000		$	300,000		$	175,000		$	750,000		$	1,475,000
Yield (on issue date)		5.075	%		5.636	%		6.280	%		6.296	%		5.95	%
Coupon		5.000	%		5.625	%		6.250	%		6.250	%		5.91	%
Discount		99.329	%		99.898	%		99.763	%		99.650	%		99.659	%
Ratings:
Moody’s		Baa2 (stable)			Baa2 (stable)			Baa2 (stable)			Baa2 (stable)
S&P		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Fitch		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Maturity Date		6/1/2015			4/15/2015			1/15/2013			1/15/2013
Discount	$	1,562		$	283		$	384		$	2,270		$	4,499

Unsecured Senior Notes, net of discount	$	248,438		$	299,717		$	174,616		$	747,730		$	1,470,501

Equity

(in thousands)


	Shares/Units Outstanding	Common Stock Equivalents		Equivalent (1)
Common Stock	108,160	108,160	(2)	$	5,416,653
Operating Partnership Units	22,046	22,046	(3)		1,104,064
Series Two Preferred Operating Partnership Units	4,330	5,683			284,605

Total Equity		135,889		$	6,805,321

Total Debt					4,994,703

Total Market Capitalization				$	11,800,024

(1)	Value based on June 30, 2004 closing price of $50.08 per share of common stock.

(2)	Includes 327 shares of restricted stock, of which 88 shares are vested as of June 30, 2004.

(3)	Includes 170 long-term incentive plan units, of which none are vested as of June 30, 2004.

Boston Properties, Inc.

Second Quarter 2004

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2004			2005			2006			2007			2008			Thereafter			Total
Floating Rate Debt	$	—		$	54,791		$	—		$	389,934		$	—		$	—		$	444,725
Fixed Rate Debt		25,262			279,053			308,028			187,305			974,747			2,775,583			4,549,978

Total Debt	$	25,262		$	333,844		$	308,028		$	577,239		$	974,747		$	2,775,583		$	4,994,703

Weighted Average Floating Rate Debt		—			2.53	%		—			2.24	%		—			—			2.28	%
Weighted Average Fixed Rate Debt		7.12	%		7.03	%		6.28	%		6.61	%		6.81	%		6.64	%		6.68	%

Total Weighted Average Rate		7.12	%		6.29	%		6.28	%		3.66	%		6.81	%		6.64	%		6.28	%

Unsecured Debt

Unsecured Line of Credit - Matures January 17, 2006

(in thousands)


Facility	Outstanding @ 6/30/04		Letters of Credit		Remaining Capacity @ 6/30/04
$605,000	$	—	$	5,715	$	599,285

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.44	%	5.95	%	9.4 years
Secured Debt	70.56	%	6.42	%	4.7 years

Total Debt	100.00	%	6.28	%	6.1 years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	8.90	%	2.28	%	2.4 years
Fixed Rate Debt	91.10	%	6.68	%	6.5 years

Total Debt	100.00	%	6.28	%	6.1 years

Boston Properties, Inc.

Second Quarter 2004

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2004			2005			2006			2007			2008			Thereafter			Total
Citigroup Center	$	3,150		$	6,651		$	7,145		$	7,676		$	8,246		$	475,007		$	507,875
Times Square Tower		—			—			—			389,934	(1)		—			—			389,934
Embarcadero Center One, Two and Federal Reserve		2,445			5,141			5,496			5,877			278,912			—			297,871
Prudential Center		2,337			4,919			5,256			5,619			259,705			—			277,836
280 Park Avenue		1,540			3,261			3,519			3,798			4,099			244,695			260,912
599 Lexington Avenue		—			225,000			—			—			—			—			225,000
Embarcadero Center Four		1,802			3,797			4,061			4,346			129,712			—			143,718
Embarcadero Center Three		1,194			2,506			2,671			132,726			—			—			139,097
Riverfront Plaza		1,476			3,104			3,314			3,540			95,327			—			106,761
Democracy Center		998			2,103			2,257			2,421			2,597			91,132			101,508
Embarcadero Center West Tower		787			1,649			90,415			—			—			—			92,851
100 East Pratt Street		998			2,100			2,246			2,401			78,110			—			85,855
One Freedom Square		908			1,896			2,005			2,122			2,245			73,641			82,817
601 and 651 Gateway Boulevard		—			—			81,660			—			—			—			81,660
140 Kendrick Street		630			1,313			1,387			1,466			1,549			55,486			61,831
202, 206 & 214 Carnegie Center		338			719			780			845			916			57,300			60,898
1330 Connecticut Avenue		1,027			2,136			2,238			2,346			2,452			50,298			60,497
New Dominion Technology Park, Building One		46			655			1,283			1,379			1,481			52,558			57,402
Reservoir Place		597			1,395			1,478			1,565			1,660			48,689			55,384
New Dominion Technology Park, Building Two		—			54,791			—			—			—			—			54,791
Capital Gallery		717			1,524			50,651			—			—			—			52,892
504, 506 & 508 Carnegie Center		530			1,136			1,221			1,314			40,915			—			45,116
10 & 20 Burlington Mall Rd & 91 Hartwell		293			741			795			855			919			34,670			38,273
10 Cambridge Center		310			659			715			777			844			30,592			33,897
Sumner Square		264			557			599			645			694			26,242			29,001
1301 New York Avenue		669			1,417			1,531			1,651			1,781			21,629			28,678
Eight Cambridge Center		284			601			649			702			757			23,729			26,722
510 Carnegie Center		300			635			683			735			23,519			—			25,872
University Place		357			752			806			864			925			19,414			23,118
Reston Corporate Center		312			654			698			745			20,523			—			22,932
Bedford Business Park		352			751			818			890			16,859			—			19,670
191 Spring Street		321			686			18,267			—			—			—			19,274
101 Carnegie Center		191			406			6,622			—			—			—			7,219
Montvale Center		89			189			6,762			—			—			—			7,040

		25,262			333,844			308,028			577,239			974,747			1,305,082			3,524,202

Unsecured Senior Notes		—			—			—			—			—			1,470,501			1,470,501
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	25,262		$	333,844		$	308,028		$	577,239		$	974,747		$	2,775,583		$	4,994,703

% of Total Debt		0.51	%		6.68	%		6.17	%		11.56	%		19.52	%		55.56	%		100.00	%
Balloon Payments		—		$	279,791		$	253,134		$	522,660		$	930,476		$	2,657,348
Scheduled Amortization	$	25,262		$	54,053		$	54,894		$	54,579		$	44,271		$	118,235

(1)	Assumes exercise of one-year extension option.

Boston Properties, Inc.

Second 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 June 30, 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.


	June 30, 2004
Total Assets:
Capitalized Property Value	$	10,638,647
Cash and Cash Equivalents		227,698
Undeveloped Land, at Cost		230,155
Development in Process, at Cost (including Joint Venture%)		654,908

Total Assets	$	11,751,408

Unencumbered Assets	$	4,884,813

Secured Debt (Fixed and Variable) (1)	$	3,498,514
Joint Venture Debt		151,303
Contingent Liabilities & Letters of Credit		17,956
Unsecured Debt (2)		1,475,000

Total Outstanding Debt	$	5,142,773

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)	$	81,874
Add: Interest Expense (per Consolidated Income Statement)		74,789
Add: Depreciation and Amortization (per Consolidated Income Statement)		60,737
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)		—
Less: Non-recurring termination income (included in interest and other on the Consolidated Income Statement)		—

EBITDA		217,400
Add: Company share of unconsolidated joint venture EBITDA		5,029

Consolidated EBITDA	$	222,429

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)	$	74,789
Add: Company share of unconsolidated joint venture interest expense		2,466
Less: Amortization of financing costs		(1,106	)
Less: Interest expense funded by construction loan draws		(650	)

Adjusted Interest Expense	$	75,499


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		43.8	%
Secured Debt/Total Assets	Less than 50%		31.1	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		2.95
Unencumbered Assets/ Unsecured Debt	Greater than 150%		331.2	%

Unencumbered Consolidated EBITDA		$	93,282

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			4.22

% of unencumbered Consoidated EBITDA to Consolidated EBITDA			41.9	%

# of unencumbered properties			70

(1)	Excludes Fair Value Adjustment of $25,688.

(2)	Excludes Debt Discount of $4,499.

Boston Properties, Inc.

Second Quarter 2004

UNCONSOLIDATED JOINT VENTURES

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of June 30, 2004


		Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue (1)			801 New Jersey Avenue (1)			Combined
Total Equity (2)	$	9,590		$	31,997		$	24,279		$	14,886		$	3,198		$	83,950

Mortgage/Construction loans payable (2)	$	47,420		$	68,748		$	18,897		$	16,238		$	—		$	151,303

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 June 30, 2004

	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue (1)			801 New Jersey Avenue (1)			Combined
REVENUE
Total revenue	$	4,958		$	6,122		$	4,812	(3)	$	—		$	—		$	15,892	(4)

EXPENSES
Operating		1,619			2,096			1,081			—			—			4,796

SUBTOTAL		3,339			4,026			3,731			—			—			11,096

Interest		1,838			2,801			338			—			—			4,977
Depreciation and amortization		1,512			1,190			916			—			—			3,618

NET INCOME	$	(11	)	$	35		$	2,477		$	—		$	—		$	2,501

BXP’s share of net income	$	(6	)	$	18		$	867		$	—		$	—		$	879
BXP’s share of depreciation & amortization		756			607			320			—			—			1,683

BXP’s share of Funds from Operations (FFO)	$	750		$	625		$	1,187		$	—		$	—		$	2,562

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

(2)	Represents the Company’s share.

(3)	Included in total revenue is approximately $1,750 of lease termination fees.

(4)	The impact of the straight-line rent adjustment increased revenue by $70 for the three months ended June 30, 2004.

Boston Properties, Inc.

Second 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%)*	$	389		$	830		$	901		$	978		$	1,061		$	64,589		$	68,748
Market Square North (50%)*		435			927			1,001			1,081			1,167			42,809			47,420
265 Franklin Street (35%)*		18,897			—			—			—			—			—			18,897
901 New York Avenue (25%)*		—			16,238			—			—			—			—			16,238

	$	19,721		$	17,995		$	1,902		$	2,059		$	2,228		$	107,398		$	151,303

Weighted Average Rate		2.68	%		3.46	%		7.95	%		7.95	%		7.95	%		8.02	%		6.78	%
% of Total Debt		13.03	%		11.89	%		1.26	%		1.36	%		1.47	%		70.99	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	23.22	%	2.69	%	0.8 years
Fixed Rate Debt	76.78	%	8.01	%	6.1 years

Total Debt	100.00	%	6.78	%	4.9 years

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

Boston Properties, Inc.

Second 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 June 30, 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	7,805,710	(4)	21.4	%	545,206		0.7	%	152,009		—	8,502,925		27.31	%	2.6	%	24.7	%
Greater Washington	6,565,177	(5)	15.9	%	909,646		1.3	%	—		—	7,474,823		24.01	%	—		17.2	%
Greater San Francisco	4,702,852		13.6	%	—				40,000		—	4,742,852		15.23	%	—		13.6	%
Midtown Manhattan	6,555,823		36.6	%	—				—		—	6,555,823		21.05	%	—		36.6	%
Princeton/East Brunswick, NJ	2,317,146		4.6	%	—				—		—	2,317,146		7.44	%	—		4.6	%
Baltimore, MD	637,605		1.6	%	—				—		—	637,605		2.05	%	—		1.6	%
Richmond, VA	906,763		1.7	%	—				—		—	906,763		2.91	%	—		1.7	%

	29,491,076		95.4	%	1,454,852		2.0	%	192,009		—	31,137,937		100.00	%	2.6	%	100.0	%

% of Total	94.71	%			4.67	%			0.62	%		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	17.7	%	6.9	%	24.6	%
Greater Washington	5.4	%	11.8	%	17.2	%
Greater San Francisco	13.0	%	0.6	%	13.6	%
Midtown Manhattan	36.6	%	—		36.6	%
Princeton/East Brunswick, NJ	—		4.7	%	4.7	%
Baltimore, MD	1.6	%	—		1.6	%
Richmond, VA	1.7	%	—		1.7	%

Total	76.0	%	24.0	%	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 53.

(2)	For a quantitative reconciliation of consolidated net operating income (NOI) to net income in accordance with GAAP, see page 46. For disclosures relating to our use of NOI see page 53. 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.

Second Quarter 2004

In-Service Property Listing

as of June 30, 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	1,181,526	96.9	%	$	37.39	Y	CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	853,686	99.8	%		50.07	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	504,864	80.9	%		43.46	Y	CBD
The Shops at the Prudential Center (1)	CBD Boston MA	1	531,996	95.7	%		52.80	Y	CBD
Shaws Supermarket at the Prudential Center (2)	CBD Boston MA	1	57,235	100.0	%		44.79	N	CBD
265 Franklin Street (35% ownership)	CBD Boston MA	1	344,671	69.6	%		55.83	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	92.1	%		42.34	N	CBD
Three Cambridge Center	East Cambridge MA	1	107,484	100.0	%		31.35	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	%		35.39	Y	CBD
Eleven Cambridge Center	East Cambridge MA	1	79,616	100.0	%		44.24	N	CBD
University Place	Mid-Cambridge MA	1	195,282	100.0	%		36.50	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	523,649	85.1	%		31.76	Y	S
204 Second Avenue	Route 128 Mass Turnpike MA	1	40,974	52.7	%		31.79	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	40.1	%		22.89	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	95.5	%		27.06	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
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	69.1	%		29.97	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	93.3	%		25.17	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	81.8	%		32.56	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	%		20.09	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	166,689	85.7	%		27.78	N	S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		30.52	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	%		27.73	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	%		25.14	N	S

		41	7,805,710	90.2	%	$	37.58

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	%		15.86	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	%	$	15.81

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

	Total Greater Boston:	47	8,502,925	89.2	%	$	36.01

Boston Properties, Inc.

Second Quarter 2004

In-Service Property Listing (continued)

as of June 30, 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	98.5	%	$	38.79	Y	CBD
500 E Street, N. W.	Southwest Washington DC	1	242,769	100.0	%		33.96	N	CBD
Metropolitan Square (51% ownership)	East End Washington DC	1	584,883	99.7	%		40.20	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	%		47.03	Y	CBD
1333 New Hampshire Avenue(2)	CBD Washington DC	1	315,371	100.0	%		37.36	N	CBD
1330 Connecticut Avenue(2)	CBD Washington DC	1	252,136	99.4	%		45.30	Y	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		35.92	Y	CBD
Democracy Center	Montgomery County MD	3	679,378	81.8	%		31.49	Y	S
Montvale Center	Montgomery County MD	1	120,777	90.1	%		24.73	Y	S
2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		34.76	N	S
Orbital Sciences 1&3	Loudoun County	2	176,726	100.0	%		23.83	N	S
Orbital Sciences 2	Loudoun County	1	160,502	100.0	%		24.34	N	S
One Freedom Square(2)	Fairfax County VA	1	410,362	100.0	%		32.76	Y	S
Two Freedom Square(2)	Fairfax County VA	1	421,502	100.0	%		35.12	N	S
One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		24.59	N	S
Two Reston Overlook	Fairfax County VA	1	132,669	90.9	%		28.92	N	S
One Discovery Square	Fairfax County VA	1	181,019	100.0	%		38.41	N	S
Two Discovery Square	Fairfax County VA	1	185,999	100.0	%		33.34	N	S
New Dominion Technology Park	Fairfax County VA	1	235,201	100.0	%		31.68	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

		27	6,565,177	97.6	%	$	34.44

Office/Technical
Broad Run Business Park	Loudoun County	1	127,286	74.5	%		19.78	N	S
Sugarland Business Park, Building One(3)	Fairfax County VA	1	52,423	69.4	%		18.06	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		17.57	N	S
7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		20.15	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	%		13.91	N	S
8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		14.11	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	%		19.07	N	S
8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		10.74	N	S
7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		23.27	N	S

		13	909,646	94.7	%	$	17.31

	Total Greater Washington:	40	7,474,823	97.2	%	$	32.41

Boston Properties, Inc.

Second Quarter 2004

In-Service Property Listing (continued)

as of June 30, 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)
Midtown Manhattan
Office
599 Lexington Avenue	Park Avenue NY	1	1,019,341	99.9	%	$	64.59	Y	CBD
280 Park Avenue	Park Avenue NY	1	1,176,391	100.0	%		58.68	Y	CBD
Citigroup Center	Park Avenue NY	1	1,578,021	94.3	%		59.96	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,680,291	100.0	%		71.34	N	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.32	N	CBD

	Total Midtown Manhattan:	5	6,555,823	98.6	%	$	62.45

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	100.0	%		31.25	N	S
105 Carnegie Center	Princeton NJ	1	70,322	71.2	%		27.11	N	S
201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		27.46	N	S
202 Carnegie Center	Princeton NJ	1	128,705	84.7	%		29.35	Y	S
206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		29.86	Y	S
210 Carnegie Center	Princeton NJ	1	161,112	86.9	%		30.61	N	S
211 Carnegie Center	Princeton NJ	1	47,025	—			—	N	S
212 Carnegie Center	Princeton NJ	1	148,233	98.5	%		32.81	N	S
214 Carnegie Center	Princeton NJ	1	150,227	60.1	%		29.66	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		32.43	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	%		31.43	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	2,317,146	89.6	%	$	30.85

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	834,356	94.4	%	$	42.63	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	779,998	85.5	%		46.82	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	772,517	84.0	%		40.74	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	933,800	93.9	%		61.55	Y	CBD
Federal Reserve	CBD San Francisco CA	1	149,592	99.8	%		48.37	Y	CBD
West Tower	CBD San Francisco CA	1	466,476	78.7	%		43.38	Y	CBD
611 Gateway	South San Francisco CA	1	256,302	56.6	%		33.01	N	S
601 and 651 Gateway	South San Francisco CA	2	509,811	53.6	%		33.55	Y	S

		9	4,702,852	83.2	%	$	46.57

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	4,742,852	83.4	%	$	46.20

Boston Properties, Inc.

Second Quarter 2004

In-Service Property Listing (continued)

as of June 30, 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	94.7	%	$	31.72	Y	CBD

Richmond, VA Office Riverfront Plaza	Richmond VA	1	906,763	91.7	%	$	21.39	Y	CBD

	Total In-Service Properties:	120	31,137,937	92.5	%(4)	$	41.56

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

(2)	Not included in Same Property analysis.

(3)	Classified as discontinued operations for the quarter ended June 30, 2004.

(4)	Occupancy at June 30, 2004 would have remained at 92.5% had the property classified as discontinued operations not been included.

Boston Properties, Inc.

Second Quarter 2004

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED


	Tenant	Sq. Ft.		% of Portfolio
1	U.S. Government	1,432,271		4.60	%
2	Citibank, N.A.	1,233,086		3.96	%
3	Ernst and Young	1,064,939		3.42	%
4	Shearman & Sterling	585,808		1.88	%
5	Lockheed Martin Corporation	567,429		1.82	%
6	Gillette Company	485,932		1.56	%
7	Wachovia	476,934		1.53	%
8	Parametric Technology Corp.	470,987		1.51	%
9	Lehman Brothers	436,723		1.40	%
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		1.06	%
14	Northrop Grumman	326,385		1.05	%
15	Kirkland & Ellis	324,014	(1)	1.04	%
16	O’ Melveny & Myers	314,137		1.01	%
17	Hunton & Williams	305,837		0.98	%
18	Akin Gump Strauss Hauer & Feld	302,653		0.97	%
19	Digitas	279,182		0.90	%
20	Bingham McCutchen	267,905		0.86	%

	Total % of Portfolio Square Feet			32.91	%
	Total % of Portfolio Revenue			35.62	%

(1)	Includes 156,580 square feet of space in a property in which Boston Properties has a 51% interest.

Major Signed Deals for Future Development


Tenant	Property	Sq. Ft.
U.S. Government	New Dominion Tech.	257,400
Finnegan Henderson Farabow Garrett & Dunner, LLP	901 New York Ave.	254,125

TENANT DIVERSIFICATION (GROSS RENT) *

LOGO

*	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.

Boston Properties, Inc.

Second 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	934,020		$	33,623,269		$	36.00		$	33,497,615		$	35.86		3.31	%
2005	2,235,818			80,738,250			36.11			81,400,824			36.41		7.93	%
2006	2,165,335			97,297,270			44.93			98,298,861			45.40		7.68	%
2007	2,393,561			91,920,757			38.40			93,951,190			39.25		8.49	%
2008	1,525,484			65,135,693			42.70			67,605,149			44.32		5.41	%
2009	3,003,610			115,472,705			38.44			124,638,687			41.50		10.66	%
2010	1,658,350			72,885,554			43.95			79,344,327			47.85		5.88	%
2011	2,645,238			112,184,233			42.41			125,879,913			47.59		9.39	%
2012	2,110,268			98,528,822			46.69			106,278,317			50.36		7.49	%
2013	502,512			19,141,658			38.09			21,400,291			42.59		1.78	%
Thereafter	6,885,628			322,828,174			46.88			378,690,173			55.00		24.43	%

Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-04		30-Jun-03			30-Jun-04			30-Jun-03			30-Jun-04			30-Jun-03
Greater Boston	93.6	%		92.5	%		85.8	%		84.0	%		90.2	%	88.8	%
Greater Washington	99.6	%		98.9	%		96.3	%		96.5	%		97.6	%	97.3	%
Midtown Manhattan	98.6	%		98.7	%		—			—			98.6	%	98.7	%
Baltimore, MD	94.7	%		98.5	%		—			—			94.7	%	98.5	%
Princeton/East Brunswick, NJ	—			—			89.6	%		94.8	%		89.6	%	94.8	%
Richmond, VA	91.7	%		91.4	%		—			—			91.7	%	91.4	%
Greater San Francisco	88.8	%		91.9	%		54.6	%		55.2	%		83.2	%	86.0	%

Total Portfolio	95.1	%		95.5	%		88.3	%		89.2	%		92.7	%	93.2	%

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

Boston Properties, Inc.

Second 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	44,468		$	733,582		$	16.50		$	740,282		$	16.65		3.06	%
2005	69,345			796,571			11.49			815,549			11.76		4.77	%
2006	287,104			4,097,757			14.27			4,125,810			14.37		19.73	%
2007	321,900			5,708,514			17.73			5,997,861			18.63		22.13	%
2008	39,380			812,234			20.63			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			2,445,475			17.81			2,546,781			18.55		9.44	%
2012	72,362			1,625,589			22.46			1,807,154			24.97		4.97	%
2013	—			—			—			—			—		—
Thereafter	311,195			5,307,303			17.05			6,255,311			20.10		21.39	%

*Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-04		30-Jun-03			30-Jun-04			30-Jun-03			30-Jun-04			30-Jun-03
Greater Boston	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	100.0	%
Greater Washington	—			—			94.7	%		81.6	%		94.7	%	81.6	%
Midtown Manhattan	n/a			n/a			n/a			n/a			n/a		n/a
Baltimore, MD	n/a			n/a			n/a			n/a			n/a		n/a
Princeton/East Brunswick, NJ	n/a			n/a			n/a			n/a			n/a		n/a
Richmond, VA	n/a			n/a			n/a			n/a			n/a		n/a
Greater San Francisco	—			—			—			77.8	%		—		77.8	%

Total Portfolio	100.0	%		100.0	%		96.5	%		86.8	%		96.7	%	87.3	%

Boston Properties, Inc.

Second 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	40,000	$	428,580	$	10.71	$	428,580	$	10.71	20.83	%
2005	—		—		—		—		—	—
2006	—		—		—		—		—	—
2007	—		—		—		—		—	—
2008	—		—		—		—		—	—
2009	—		—		—		—		—	—
2010	—		—		—		—		—	—
2011	—		—		—		—		—	—
2012	—		—		—		—		—	—
2013	—		—		—		—		—	—
Thereafter	—		—		—		—		—	—

Occupancy By Location

CBD

Suburban

Total

Location

30-Jun-04

30-Jun-03

30-Jun-04

30-Jun-03

30-Jun-04

30-Jun-03

Greater Boston

—

0.0

74.9

0.0

74.9

Greater Washington

n/a

Midtown Manhattan

n/a

Baltimore, MD

n/a

Princeton/East Brunswick, NJ

n/a

Richmond, VA

n/a

Greater San Francisco

—

100.0

Total Portfolio

—

20.8

89.3

20.8

89.3

Boston Properties, Inc.

Second 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	20,374	$	2,157,522	$	105.90	(1)	$	2,235,414	$	109.72	(1)	1.57	%
2005	59,899		4,408,518		73.60			4,446,387		74.23		4.61	%
2006	56,113		3,275,564		58.37			3,288,377		58.60		4.32	%
2007	44,988		2,364,941		52.57			2,466,092		54.82		3.47	%
2008	68,122		3,412,451		50.09			3,523,227		51.72		5.25	%
2009	63,736		2,701,750		42.39			2,853,577		44.77		4.91	%
2010	132,360		4,647,715		35.11			5,071,171		38.31		10.19	%
2011	41,289		2,563,748		62.09			2,968,754		71.90		3.18	%
2012	103,652		4,827,504		46.57			5,417,517		52.27		7.98	%
2013	58,999		4,903,501		83.11			5,401,122		91.55		4.54	%
Thereafter	648,760		32,601,878		50.25			40,075,942		61.77		49.97	%

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $67.64.

Boston Properties, Inc.

Second 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			Annualize Revenues Under Expiring Leases with future step-ups -p.s.f.			Percentage of Total Square Feet
2004	1,038,862		$	36,942,953		$	35.56		$	36,901,890		$	35.52		3.3	%
2005	2,365,062			85,943,340			36.34			86,662,760			36.64		7.6	%
2006	2,508,552			104,670,592			41.73			105,713,048			42.14		8.1	%
2007	2,760,449			99,994,212			36.22			102,415,143			37.10		8.9	%
2008	1,632,986			69,360,378			42.47			71,969,713			44.07		5.2	%
2009	3,096,048			118,900,236			38.40			128,228,339			41.42		9.9	%
2010	1,870,681			78,709,520			42.08			85,591,750			45.75		6.0	%
2011	2,823,848			117,193,456			41.50			131,395,448			46.53		9.1	%
2012	2,286,282			104,981,915			45.92			113,502,989			49.65		7.3	%
2013	561,511			24,045,158			42.82			26,801,413			47.73		1.8	%
Thereafter	7,845,583			360,737,356			45.98			425,021,426			54.17		25.2	%

Occupancy By Location

	CBD					Suburban						Total
Location	30-Jun-04		30-Jun-03			30-Jun-04			30-Jun-03			30-Jun-04			30-Jun-03
Greater Boston	93.7	%		92.6	%		84.2	%		85.5	%		89.2	%	89.2	%
Greater Washington	99.6	%		98.9	%		96.0	%		93.8	%		97.2	%	95.2	%
Midtown Manhattan	98.6	%		98.7	%		—			—			98.6	%	98.7	%
Baltimore, MD	94.7	%		98.5	%		—			—			94.7	%	98.5	%
Princeton/East Brunswick, NJ	—			—			89.6	%		94.8	%		89.6	%	94.8	%
Richmond, VA	91.7	%		91.4	%		—			—			91.7	%	91.4	%
Greater San Francisco	88.8	%		91.9	%		56.9	%		61.3	%		83.4	%	85.9	%

Total Portfolio	95.1	%		95.5	%		88.2	%		88.9	%		92.5	%	92.8	%

Boston Properties, Inc.

Second Quarter 2004

IN-SERVICE GREATER BOSTON PROPERTIES

Lease Expirations - Greater Boston


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot			Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2004	224,260	$	7,658,918	$	34.15	$	7,505,130	$	33.47	—	$	—	$	—		$	—	$	—
2005	838,672		32,024,920		38.19		32,262,075		38.47	—		—		—			—		—
2006	563,312		19,893,786		35.32		19,533,513		34.68	253,704		3,551,372		14.00			3,551,372		14.00
2007	498,165		19,578,540		39.30		20,156,163		40.46	144,140		1,946,210		13.50			2,207,420		15.31
2008	496,873		15,949,321		32.10		16,637,156		33.48	—		—		—			—		—
2009	1,066,913		37,708,044		35.34		41,335,625		38.74	—		—		—			—		—
2010	175,871		5,658,517		32.17		6,162,385		35.04	—		—		—			—		—
2011	801,220		30,338,017		37.86		34,561,862		43.14	80,000		1,648,302		20.60			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	240,470		10,813,733		44.97		11,789,366		49.03	—		—		—			—		—
Thereafter	769,884		31,670,657		41.14		34,063,210		44.24	—		—		—			—		—

	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	—	$	—	$	—	$	—	$	—	7,565	$	1,580,006	$	208.86	(1)	$	1,657,898	$	219.15	(1)
2005	—		—		—		—		—	26,154		2,572,833		98.37			2,583,408		98.78
2006	—		—		—		—		—	14,888		1,218,299		81.83			1,218,895		81.87
2007	—		—		—		—		—	4,001		422,797		105.67			428,973		107.22
2008	—		—		—		—		—	5,467		547,164		100.08			511,164		93.50
2009	—		—		—		—		—	9,497		667,706		70.31			677,710		71.36
2010	—		—		—		—		—	77,838		2,359,266		30.31			2,433,486		31.26
2011	—		—		—		—		—	11,599		570,390		49.18			618,890		53.36
2012	—		—		—		—		—	52,949		1,789,593		33.80			1,856,466		35.06
2013	—		—		—		—		—	13,892		1,935,199		139.30			2,033,724		146.40
Thereafter	—		—		—		—		—	448,795		18,358,188		40.91			21,148,211		47.12

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $97.96.

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2004	95,763		3,414,307		35.65		3,665,894		38.28	—		—		—		—		—
Q4 2004	128,497		4,244,610		33.03		3,839,235		29.88	—		—		—		—		—

Total 2004	224,260	$	7,658,918	$	34.15	$	7,505,130	$	33.47	—		—		—		—		—

Q1 2005	101,210	$	3,894,007	$	38.47	$	3,964,096	$	39.17	—	$	—	$	—	$	—	$	—
Q2 2005	243,566		7,545,710		30.98		7,545,710		30.98	—		—		—		—		—
Q3 2005	175,304		9,174,317		52.33		9,314,636		53.13	—		—		—		—		—
Q4 2005	318,592		11,410,886		35.82		11,437,632		35.90	—		—		—		—		—

Total 2005	838,672	$	32,024,920	$	38.19	$	32,262,075	$	38.47	—		—		—		—		—


	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	—		—		—		—		—	3,665		588,759		160.64		606,879		165.59
Q4 2004	—		—		—		—		—	3,900		991,247		254.17		1,051,019		269.49

Total 2004	—		—	$	—	$	—	$	—	7,565	$	1,580,006	$	208.86	$	1,657,898	$	219.15

Q1 2005	—	$	—	$	—		—	$	—	9,432	$	810,651	$	85.95	$	821,151	$	87.06
Q2 2005	—		—		—		—		—	2,378		820,515		345.04		784,890		330.06
Q3 2005	—		—		—		—		—	2,027		334,863		165.20		330,867		163.23
Q4 2005	—		—		—		—		—	12,317		606,803		49.27		646,499		52.49

Total 2005	—	$	—	$	—	$	—	$	—	26,154	$	2,572,833	$	98.37	$	2,583,408	$	98.78

Boston Properties, Inc.

Second 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	5,604	$	189,808	$	33.87	$	189,808	$	33.87	44,468	$	733,582	$	16.50	$	740,282	$	16.65
2005	315,286		10,939,405		34.70		11,180,884		35.46	69,345		796,571		11.49		815,549		11.76
2006	232,312		7,217,685		31.07		7,503,540		32.30	33,400		546,385		16.36		574,438		17.20
2007	359,394		12,257,614		34.11		12,502,036		34.79	177,760		3,762,305		21.17		3,790,442		21.32
2008	216,626		7,069,422		32.63		7,738,556		35.72	39,380		812,234		20.63		841,337		21.36
2009	1,115,602		39,403,096		35.32		42,543,498		38.14	28,702		725,781		25.29		736,075		25.65
2010	785,249		29,159,177		37.13		32,072,441		40.84	79,971		1,176,252		14.71		1,176,252		14.71
2011	964,549		31,109,456		32.25		36,155,762		37.48	57,321		797,173		13.91		798,479		13.93
2012	443,904		16,590,013		37.37		20,192,234		45.49	—		—		—		—		—
2013	57,015		1,511,196		26.51		1,859,891		32.62	—		—		—		—		—
Thereafter	1,654,965		56,963,549		34.42		68,880,756		41.62	311,195		5,307,303		17.05		6,255,311		20.10

	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	—		—		—		—		—	3,418		133,903		39.18		135,067		39.52
2006	—		—		—		—		—	4,686		181,099		38.65		184,493		39.37
2007	—		—		—		—		—	12,610		375,508		29.78		395,687		31.38
2008	—		—		—		—		—	16,338		648,577		39.70		685,497		41.96
2009	—		—		—		—		—	23,554		689,933		29.29		769,376		32.66
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		272,627		27.14		326,087		32.46
2013	—		—		—		—		—	13,377		589,245		44.05		723,461		54.08
Thereafter	—		—		—		—		—	35,365		1,196,952		33.85		1,521,609		43.03

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2004	5,604		189,808		33.87		189,808		33.87	—		—		—		—		—
Q4 2004	—		—		—		—		—	44,468		733,582		16.50		740,282		16.65

Total 2004	5,604	$	189,808	$	33.87	$	189,808	$	33.87	44,468	$	733,582	$	16.50	$	740,282	$	16.65

Q1 2005	69,286	$	2,645,375	$	38.18	$	2,657,589	$	38.36	—	$	—	$	—	$	—	$	—
Q2 2005	70,518		2,268,569		32.17		2,287,073		32.43	52,539		551,190		10.49		564,108		10.74
Q3 2005	95,563		3,287,289		34.40		3,400,587		35.58	16,806		245,381		14.60		251,441		14.96
Q4 2005	79,919		2,738,172		34.26		2,835,635		35.48	—		—		—		—		—

Total 2005	315,286	$	10,939,405	$	34.70	$	11,180,884	$	35.46	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	—	$	—	$	—	$	—	$	—	2,334	$	82,169	$	35.21	$	82,169	$	35.21
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	1,084		51,735		47.73		52,898		48.80
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	—	$	—	$	—	$	—	$	—	3,418	$	133,903	$	39.18		135,067	$	39.52

Boston Properties, Inc.

Second 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	387,681	$	16,017,040	$	41.31	$	16,052,050	$	41.41	—	$	—	$	—	$	—	$	—
2005	368,274		15,298,870		41.54		15,319,538		41.60	—		—		—		—		—
2006	887,232		41,414,507		46.68		42,406,692		47.80	—		—		—		—		—
2007	438,773		20,843,357		47.50		21,157,206		48.22	—		—		—		—		—
2008	297,494		10,815,283		36.35		11,338,804		38.11	—		—		—		—		—
2009	199,838		9,347,499		46.78		9,694,080		48.51	—		—		—		—		—
2010	200,175		11,629,268		58.10		12,898,750		64.44	—		—		—		—		—
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		4,028,757		35.59		4,520,402		39.93	—		—		—		—		—
Thereafter	563,973		19,344,005		34.30		21,402,503		37.95	—		—		—		—		—

	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	6,422	$	296,389	$	46.15	$	296,389	$	46.15
2005	—		—		—		—		—	23,517		1,142,644		48.59		1,160,644		49.35
2006	—		—		—		—		—	20,964		1,176,314		56.11		1,180,500		56.31
2007	—		—		—		—		—	18,341		1,138,236		62.06		1,213,031		66.14
2008	—		—		—		—		—	39,524		1,975,415		49.98		2,067,455		52.31
2009	—		—		—		—		—	30,685		1,344,111		43.80		1,406,491		45.84
2010	—		—		—		—		—	32,212		1,343,362		41.70		1,541,075		47.84
2011	—		—		—		—		—	3,474		189,100		54.43		227,915		65.61
2012	—		—		—		—		—	35,018		2,132,315		60.89		2,410,897		68.85
2013	—		—		—		—		—	9,302		672,516		72.30		739,809		79.53
Thereafter	—		—		—		—		—	20,394		1,078,284		52.87		1,473,864		72.27

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2004	228,341		10,491,435		45.95		10,526,445		46.10	—		—		—		—		—
Q4 2004	159,340		5,525,605		34.68		5,525,605		34.68	—		—		—		—		—

Total 2004	387,681	$	16,017,040	$	41.31	$	16,052,050	$	41.41	—		—		—		—		—

Q1 2005	123,662	$	4,854,394	$	39.26	$	4,854,394	$	39.26	—	$	—	$	—	$	—	$	—
Q2 2005	108,316		4,046,369		37.36		4,046,369		37.36	—		—		—		—		—
Q3 2005	88,080		4,381,549		49.75		4,392,806		49.87	—		—		—		—		—
Q4 2005	48,216		2,016,558		41.82		2,025,969		42.02	—		—		—		—		—

Total 2005	368,274	$	15,298,870	$	41.54	$	15,319,538	$	41.60	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2004	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2004	—		—		—		—		—	—		—		—		—		—
Q3 2004	—		—		—		—		—	1,318		86,460		65.60		86,460		65.60
Q4 2004	40,000		428,580		10.71		428,580		10.71	5,104		209,929		41.13		209,929		41.13

Total 2004	40,000	$	428,580	$	10.71	$	428,580	$	10.71	6,422	$	296,389	$	46.15	$	296,389	$	46.15

Q1 2005	—	$	—	$	—	$	—	$	—	7,363	$	307,427	$	41.75	$	307,427		41.75
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	—		—		—		—		—	23,517	$	1,142,644	$	48.59	$	1,160,644	$	49.35

Boston Properties, Inc.

Second 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	23,806	$	1,308,639	$	54.97	$	1,308,639	$	54.97	—	$	—	$	—	$	—	$	—
2005	66,577		4,665,776		70.08		4,665,776		70.08	—		—		—		—		—
2006	357,204		24,695,493		69.14		24,689,584		69.12	—		—		—		—		—
2007	170,306		10,607,766		62.29		10,714,632		62.91	—		—		—		—		—
2008	505,844		31,072,422		61.43		31,639,118		62.55	—		—		—		—		—
2009	306,716		19,477,253		63.50		20,683,113		67.43	—		—		—		—		—
2010	304,088		20,269,769		66.66		21,542,414		70.84	—		—		—		—		—
2011	395,574		23,864,600		60.33		26,904,357		68.01	—		—		—		—		—
2012	891,075		53,101,152		59.59		54,151,545		60.77	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	3,237,630		195,841,783		60.49		235,201,134		72.65	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	1,300	$	151,445	$	116.50	$	151,445	$	116.50
2005	—		—		—		—		—	1,514		295,209		194.99		296,312		195.71
2006	—		—		—		—		—	15,575		699,853		44.93		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		1,465,772		92.21		1,648,205		103.69
Thereafter	—		—		—		—		—	136,160		11,919,158		87.54		15,793,749		115.99

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2004	—		—		—		—		—	—		—		—		—		—
Q4 2004	23,806		1,308,639		54.97		1,308,639		54.97	—		—		—		—		—

Total 2004	23,806	$	1,308,639	$	54.97	$	1,308,639	$	54.97	—		—		—		—		—

Q1 2005	3,667	$	220,220	$	60.05	$	220,220	$	60.05	—	$	—	$	—	$	—	$	—
Q2 2005	7,956		428,830		53.90		428,830		53.90	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	54,954		4,016,726		73.09		4,016,726		73.09	—		—		—		—		—

Total 2005	66,577	$	4,665,776	$	70.08	$	4,665,776	$	70.08	—		—		—		—		—


	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		151,445		116.50		151,445		116.50

Total 2004	—	$	—	$	—	$	—	$	—	1,300	$	151,445	$	116.50	$	151,445	$	116.50

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

Total 2005	—	$	—	$	—	$	—	$	—	1,514	$	295,209	$	194.99	$	296,312	$	195.71

Boston Properties, Inc.

Second Quarter 2004

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

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
2004	198,953	$	6,136,343	$	30.84	$	6,136,343	$	30.84	—	$	—	$	—	$	—	$	—
2005	250,647		7,878,403		31.43		7,889,549		31.48	—		—		—		—		—
2006	86,237		3,024,225		35.07		3,066,625		35.56	—		—		—		—		—
2007	513,240		15,449,140		30.10		16,210,760		31.59	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	251,399		7,866,606		31.29		8,712,357		34.66	—		—		—		—		—
2010	133,801		4,532,747		33.88		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,354,938		30.95		9,193,711		34.06	—		—		—		—		—
2012	5,500		158,675		28.85		168,300		30.60	—		—		—		—		—
2013	91,833		2,787,971		30.36		3,230,632		35.18	—		—		—		—		—
Thereafter	384,114		11,359,972		29.57		11,494,361		29.92	—		—		—		—		—

	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.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2004	47,004		1,383,222		29.43		1,383,222		29.43	—		—		—		—		—
Q4 2004	151,949		4,753,121		31.28		4,753,121		31.28	—		—		—		—		—

Total 2004	198,953	$	6,136,343	$	30.84	$	6,136,343	$	30.84	—		—		—		—		—

Q1 2005	25,792	$	680,201	$	26.37	$	680,201	$	26.37	—	$	—	$	—	$	—	$	—
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	250,647	$	7,878,403	$	31.43	$	7,889,549	$	31.48	—		—		—		—		—


	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.

Second Quarter 2004

IN-SERVICE OTHER PROPERTIES

Lease Expirations

Other Properties (Richmond, VA and Baltimore, MD)


	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	93,716	$	2,312,521	$	24.68	$	2,305,645	$	24.60	—	$	—	$	—	$	—	$	—
2005	396,362		9,930,876		25.06		10,083,003		25.44	—		—		—		—		—
2006	39,038		1,051,574		26.94		1,098,908		28.15	—		—		—		—		—
2007	413,683		13,184,340		31.87		13,210,394		31.93	—		—		—		—		—
2008	8,647		229,245		26.51		251,516		29.09	—		—		—		—		—
2009	63,142		1,670,207		26.45		1,670,013		26.45	—		—		—		—		—
2010	59,166		1,636,076		27.65		1,803,825		30.49	—		—		—		—		—
2011	4,618		126,169		27.32		139,653		30.24	—		—		—		—		—
2012	33,891		1,088,790		32.13		1,348,771		39.80	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	275,062		7,648,208		27.81		7,648,209		27.81	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	2,183	$	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		80,160		22.51		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.

Second Quarter 2004

IN-SERVICE OTHER PROPERTIES

Quarterly Lease Expirations

Other Properties (Richmond, VA and Baltimore, MD)


	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	—		—		—		—		—	—		—		—		—		—
Q3 2004	61,160		1,342,123		21.94		1,335,247		21.83	—		—		—		—		—
Q4 2004	32,556		970,398		29.81		970,398		29.81	—		—		—		—		—

Total 2004	93,716	$	2,312,521	$	24.68	$	2,305,645	$	24.60	—	$	—	$	—	$	—	$	—

Q1 2005	1,731	$	37,891	$	21.89	$	37,891	$	21.89	—	$	—	$	—	$	—	$	—
Q2 2005	23,213		561,458		24.19		570,783		24.59	—		—		—		—		—
Q3 2005	37,894		1,199,260		31.65		1,217,694		32.13	—		—		—		—		—
Q4 2005	333,524		8,132,267		24.38		8,256,635		24.76	—		—		—		—		—

Total 2005	396,362	$	9,930,876	$	25.06	$	10,083,003	$	25.44	—	$	—	$	—	$	—	$	—


	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	—		—		—		—		—	2,183		81,682		37.42		81,682		37.42

Total 2004	—	$	—	$	—	$	—	$	—	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.

Second 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	55,572	(1)	$	3,697,446	(1)	$	66.53	(1)	$	3,775,338	$	67.94	2,067	$	70,278	$	34.00	$	70,278	$	34.00
2005	481,555			23,592,529			48.99			23,735,006		49.29	73,307		2,769,263		37.78		2,810,976		38.35
2006	153,625			7,564,635			49.24			7,550,987		49.15	42,847		1,717,686		40.09		1,764,909		41.19
2007	169,088			9,167,515			54.22			9,304,648		55.03	277,578		9,603,142		34.60		9,667,392		34.83
2008	173,171			6,510,011			37.59			6,605,386		38.14	42,191		1,663,245		39.42		1,796,657		42.58
2009	738,820			26,688,321			36.12			29,678,570		40.17	833,833		30,936,496		37.10		33,956,880		40.72
2010	161,066			5,730,711			35.58			6,074,091		37.71	214,946		7,866,681		36.60		9,162,129		42.63
2011	447,949			23,102,010			51.57			26,322,573		58.76	95,834		3,215,842		33.56		3,892,801		40.62
2012	309,025			13,785,294			44.61			14,694,688		47.55	80,203		3,142,353		39.18		3,158,200		39.38
2013	254,362			12,748,932			50.12			13,823,090		54.34	1,702		88,083		51.75		110,555		64.96
Thereafter	990,601			42,028,541			42.43			45,806,947		46.24	406,913		18,282,173		44.93		22,443,759		55.16


	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	25,106	$	1,460,084	$	58.16	$	1,460,084	$	58.16	344,904	$	14,618,403	$	42.38	$	14,653,413	$	42.49
2005	68,091		4,960,985		72.86		4,962,087		72.87	347,371		14,807,149		42.63		14,837,237		42.71
2006	372,779		25,395,345		68.12		25,394,073		68.12	847,064		39,688,867		46.85		40,533,099		47.85
2007	170,306		10,607,766		62.29		10,714,632		62.91	438,397		21,364,518		48.73		21,737,000		49.58
2008	509,076		31,233,557		61.35		31,807,495		62.48	264,807		11,066,221		41.79		11,598,467		43.80
2009	306,716		19,477,253		63.50		20,683,113		67.43	215,570		10,265,323		47.62		10,636,763		49.34
2010	309,118		20,626,487		66.73		21,959,132		71.04	224,663		12,797,631		56.96		14,208,105		63.24
2011	410,569		25,194,734		61.37		28,494,345		69.40	212,834		18,580,154		87.30		19,152,483		89.99
2012	896,714		53,734,121		59.92		54,975,612		61.31	162,789		7,612,747		46.76		8,365,970		51.39
2013	15,896		1,465,772		92.21		1,648,205		103.69	122,496		4,701,273		38.38		5,260,212		42.94
Thereafter	3,373,790		207,760,941		61.58		250,994,883		74.40	328,065		13,431,601		40.94		14,624,673		44.58


	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	—	$	—	$	—	$	—	$	—	95,899	$	2,394,203	$	24.97	$	2,387,327	$	24.89
2005	—		—		—		—		—	401,658		10,194,805		25.38		10,353,959		25.78
2006	—		—		—		—		—	39,038		1,051,574		26.94		1,098,908		28.15
2007	—		—		—		—		—	423,719		13,612,741		32.13		13,638,794		32.19
2008	—		—		—		—		—	12,208		309,404		25.34		342,249		28.03
2009	—		—		—		—		—	63,142		1,670,207		26.45		1,670,013		26.45
2010	—		—		—		—		—	59,166		1,636,076		27.65		1,803,825		30.49
2011	—		—		—		—		—	4,618		126,169		27.32		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	—		—		—		—		—	283,108		7,697,505		27.19		7,786,719		27.50

(1)	Includes 7,565 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases with retail is $45.36 and rent on expiring leases with future step-up including retail is $45.36 per square foot.

Boston Properties, Inc.

Second 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	176,253	$	5,541,478	$	31.44	$	5,387,690	$	30.57	48,005	$	853,112	$	17.77	$	859,812	$	17.91
2005	383,271		11,005,224		28.71		11,110,476		28.99	314,742		9,100,617		28.91		9,320,523		29.61
2006	678,279		17,098,822		25.21		16,752,793		24.70	227,551		6,227,483		27.37		6,497,563		28.55
2007	477,218		12,780,031		26.78		13,487,908		28.26	272,186		6,792,285		24.95		7,020,772		25.79
2008	329,169		9,986,473		30.34		10,542,933		32.03	230,153		6,866,989		29.84		7,468,733		32.45
2009	337,590		11,687,429		34.62		12,334,765		36.54	334,025		9,882,314		29.59		10,092,069		30.21
2010	92,643		2,287,072		24.69		2,521,781		27.22	667,554		23,057,116		34.54		24,766,456		37.10
2011	444,870		9,454,698		21.25		10,606,481		23.84	937,257		29,164,911		31.12		33,593,400		35.84
2012	424,413		11,739,647		27.66		13,431,326		31.65	373,747		13,720,288		36.71		17,360,121		46.45
2013	—		—		—		—		—	68,690		2,012,358		29.30		2,472,797		36.00
Thereafter	228,078		8,000,304		35.08		9,404,474		41.23	1,594,612		45,185,631		28.34		54,213,918		34.00


	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	—	$	—	$	—	$	—	$	—	89,199	$	2,123,606	$	23.81	$	2,123,606	$	23.81
2005	—		—		—		—		—	44,420		1,634,365		36.79		1,642,945		36.99
2006	—		—		—		—		—	61,132		2,901,954		47.47		3,054,093		49.96
2007	—		—		—		—		—	18,717		617,074		32.97		633,237		33.83
2008	—		—		—		—		—	72,211		1,724,478		23.88		1,807,793		25.03
2009	—		—		—		—		—	14,953		426,288		28.51		463,808		31.02
2010	—		—		—		—		—	7,724		175,000		22.66		231,720		30.00
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	256,302		6,990,688		27.28		8,251,693		32.20


	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	201,857	$	6,184,343	$	30.64	$	6,184,343	$	30.64	—	$	—	$	—	$	—	$	—
2005	250,647		7,878,403		31.43		7,889,549		31.48	—		—		—		—		—
2006	86,237		3,024,225		35.07		3,066,625		35.56	—		—		—		—		—
2007	513,240		15,449,140		30.10		16,210,760		31.59	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	251,399		7,866,606		31.29		8,712,357		34.66	—		—		—		—		—
2010	133,801		4,532,747		33.88		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,354,938		30.95		9,193,711		34.06	—		—		—		—		—
2012	5,500		158,675		28.85		168,300		30.60	—		—		—		—		—
2013	91,833		2,787,971		30.36		3,230,632		35.18	—		—		—		—		—
Thereafter	384,114		11,359,972		29.57		11,494,361		29.92	—		—		—		—		—

Boston Properties, Inc.

Second Quarter 2004

HOTEL PERFORMANCE

Long Wharf Marriott - Boston


	Second Quarter 2004			Second Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		88.0	%		81.8	%	7.6	%		82.9	%		76.8	%	7.9	%
Average Daily Rate	$	216.07		$	205.76		5.0	%	$	191.10		$	186.31		2.6	%
Revenue per available room	$	190.14		$	168.31		13.0	%	$	158.32		$	143.12		10.6	%

Cambridge Center Marriott
	Second Quarter 2004			Second Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		85.9	%		77.7	%	10.6	%		75.5	%		70.9	%	6.5	%
Average Daily Rate	$	168.27		$	166.87		0.8	%	$	154.16		$	157.03		-1.8	%
Revenue per available room	$	144.49		$	129.60		11.5	%	$	116.37		$	111.33		4.5	%

Residence Inn by Marriott
	Second Quarter 2004			Second Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		87.8	%		80.3	%	9.3	%		79.3	%		74.9	%	5.9	%
Average Daily Rate	$	138.33		$	129.28		7.0	%	$	126.74		$	123.27		2.8	%
Revenue per available room	$	121.40		$	103.77		17.0	%	$	100.46		$	92.29		8.9	%

Total Hotel Performance
	Second Quarter 2004			Second Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		87.1	%		79.8	%	9.1	%		79.1	%		74.0	%	6.9	%
Average Daily Rate	$	180.22		$	173.82		3.7	%	$	162.50		$	161.12		0.9	%
Revenue per available room	$	157.06		$	138.95		13.0	%	$	129.03		$	119.46		8.0	%

Boston Properties, Inc.

Second Quarter 2004

OCCUPANCY ANALYSIS

Same Property Occupancy(1) - By Location


	CBD				Suburban				Total
Location	30-Jun-04		30-Jun-03		30-Jun-04		30-Jun-03		30-Jun-04		30-Jun-03
Greater Boston	93.7	%	92.5	%	84.2	%	85.5	%	89.2	%	89.2	%
Greater Washington	99.6	%	98.9	%	95.2	%	94.4	%	96.6	%	95.8	%
Midtown Manhattan	98.6	%	98.7	%	—		—		98.6	%	98.7	%
Baltimore, MD	94.7	%	98.5	%	—		—		94.7	%	98.5	%
Princeton/East Brunswick, NJ	—		—		89.6	%	94.8	%	89.6	%	94.8	%
Richmond, VA	91.7	%	91.4	%	—		—		91.7	%	91.4	%
Greater San Francisco	88.8	%	91.9	%	56.9	%	57.4	%	83.4	%	86.1	%

Total Portfolio	95.0	%	95.5	%	87.3	%	88.8	%	92.1	%	92.9	%


**Same Property Occupancy⁽¹⁾ - By Location**
	CBD				Suburban				Total
	30-Jun-04		30-Jun-03		30-Jun-04		30-Jun-03		30-Jun-04		30-Jun-03
Total Office Portfolio	95.0	%	95.4	%	87.3	%	88.5	%	92.3	%	93.0	%
Total Office/Technical Portfolio	100.0	%	100.0	%	96.5	%	92.0	%	96.7	%	92.4	%
Total Industrial Portfolio	—		—		20.8	%	79.9	%	20.8	%	79.9	%

Total Portfolio	95.0	%	95.5	%	87.3	%	88.8	%	92.1	%	92.9	%

(1)	For disclosures related to our definition of Same Property, see page 53.

Boston Properties, Inc.

Second Quarter 2004

SAME PROPERTY PERFORMANCE

Office, Office/Technical, Industrial and Hotel Properties


	Office		Office/Technical		Industrial		Hotel (1)		Total
Number of Properties	95		18		2		3		118
Square feet	28,034,470		1,454,852		192,009		937,874		30,619,205
Percent of in-service properties	95.1	%	100.0	%	100.0	%	100.0	%	95.5	%
Occupancy @ 6/30/03	93.0	%	92.4	%	79.9	%	—		92.9	%
Occupancy @ 6/30/04	92.3	%	96.7	%	20.8	%	—		92.1	%
Percent change from 2nd quarter 2004 over 2nd quarter 2003 (2):
Rental revenue	-0.3	%	5.1	%	-72.6	%	11.3	%	0.3	%
Operating expenses and real estate taxes	2.4	%	19.4	%	11.5	%	9.1	%	3.3	%
Net Operating Income (3)	-1.6	%	1.6	%	-104.3	%	16.9	%	-1.3	%
Net Operating Income (3) - without hotels									-1.7	%

Rental revenue - cash basis	0.5	%	3.9	%	-73.3	%	11.3	%	1.1	%
Net Operating Income (3) - cash basis (4)	-0.4	%	0.0	%	-102.3	%	16.8	%	-0.1	%
Net Operating Income (3) - cash basis(4) - without hotels									-0.6	%


	Office			Office/Technical			Industrial			Total
Vacant space available @ 4/1/04 (sf)		2,206,007			28,533			152,009			2,386,549
Square footage of leases expiring or terminated 4/1/04-6/30/04		838,718			57,575			—			896,293

Total space for lease (sf)		3,044,725			86,108			152,009			3,282,842

New tenants (sf)		486,596			24,661			—			511,257
Renewals (sf)		378,076			45,398			—			423,474

Total space leased (sf)		864,672			70,059			—			934,731

Space available @ 6/30/04 (sf)		2,180,053			16,049			152,009			2,348,111

Net (increase)/decrease in available space (sf)		25,954			12,484			—			38,438
Average lease term (months)		74			55			—			72
2nd generation TI/Comm PSF	$	25.00		$	10.04		$	—		$	23.60
Increase (decrease) in 2nd generation gross rents (5)		-4.40	%		-1.94	%		0.00	%		-4.34	%
Increase (decrease) in 2nd generation net rents (5)		-4.62	%		29.45	%		0.00	%		-3.67	%

(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 46. For disclosures relating to our use of NOI, see page 53.

(4)	For a quantitative reconciliation of NOI to NOI on a cash basis, see page 47. For disclosures relating to our use of NOI, see page 53.

(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 701,707 square feet.

Boston Properties, Inc.

Second Quarter 2004

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	6/30/2004			6/30/2003
	(in thousands)
Net income available to common shareholders	$	87,118		$	63,236
Gains on sales of real estate from discontinued operations, net of minority interest		(19,589	)		—
Income from discontinued operations, net of minority interest		(69	)		(935	)
Gains on sales of real estate and other assets, net of minority interest		(1,377	)		(3,546	)
Minority interest in Operating Partnership		17,908			18,924
Income from unconsolidated joint ventures		(879	)		(1,353	)
Minority interest in property partnerships		(1,238	)		(268	)

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		81,874			76,058

Add:
Net derivative losses		—			991
Depreciation and amortization		60,737			50,323
Interest		74,789			75,447
General and administrative		12,493			11,028

Subtract:
Interest and other		(1,090	)		(663	)
Development and management services		(5,965	)		(5,429	)

Consolidated Net Operating Income	$	222,838		$	207,755

Same Property Net Operating Income	$	202,161		$	204,725
Net operating income from non Same Properties (1)		20,677			1,611
Termination income		—			1,419

Consolidated Net Operating Income	$	222,838		$	207,755

Same Property Net Operating Income	$	202,161		$	204,725
Less Straight Line Rent		8,284			10,631

Same Property Net Operating Income - cash basis	$	193,877		$	194,094

(1)

See pages 19-22 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Second 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
	30-Jun-04		30-Jun-03		$ Change			% Change		30-Jun-04		30-Jun-03		$ Change		% Change		30-Jun-04			30-Jun-03			$ Change			% Change
Rental Revenue	$	287,955	$	290,325						$	5,636	$	5,363					$	104		$	380
Less Termination Income		—		1,419							—		—						—			—

Rental revenue - subtotal		287,955		288,906		(951	)	-0.3	%		5,636		5,363		273	5.1	%		104			380			(276	)	-72.6	%
Operating expenses and real estate taxes		95,953		93,724		2,229		2.4	%		1,255		1,051		204	19.4	%		116			104			12		11.5	%

Net Operating Income (1)	$	192,002	$	195,182	$	(3,180	)	-1.6	%	$	4,381	$	4,312	$	69	1.6	%	$	(12	)	$	276		$	(288	)	-104.3	%

Rental revenue - subtotal	$	287,955	$	288,906						$	5,636	$	5,363					$	104		$	380
Less Straight Line Rent		8,145		10,585		(2,440	)				143		74		69				(5	)		(28	)		23

Rental revenue - cash basis		279,810		278,321		1,489		0.5	%		5,493		5,289		204	3.9	%		109			408			(299	)	-73.3	%
Less:
Operating expenses and real estate taxes		95,953		93,724		2,229		2.4	%		1,255		1,051		204	19.4	%		116			104			12		11.5	%

Net Operating Income (2) - cash basis	$	183,857	$	184,597	$	(740	)	-0.4	%	$	4,238	$	4,238	$	—	0.0	%	$	(7	)	$	304		$	(311	)	-102.3	%


	Hotel								Total
	For the three months ended				$ Change		% Change		For the three months ended				$ Change			% Change
	30-Jun-04		30-Jun-03		$ Change		% Change		30-Jun-04		30-Jun-03		$ Change			% Change
Rental Revenue	$	19,166	$	17,213					$	312,861	$	313,281
Less Termination Income		—		—						—		1,419

Rental revenue - subtotal		19,166		17,213	$	1,953	11.3	%		312,861		311,862		999		0.3	%
Operating expenses and real estate taxes		13,376		12,258		1,118	9.1	%		110,700		107,137		3,563		3.3	%

Net Operating Income (1)	$	5,790	$	4,955	$	835	16.9	%	$	202,161	$	204,725	$	(2,564	)	-1.3	%

Rental revenue - subtotal	$	19,166	$	17,213					$	312,861	$	311,862
Less Straight Line Rent		1		—		1				8,284		10,631		(2,347	)

Rental revenue - cash basis		19,165		17,213		1,952	11.3	%		304,577		301,231		3,346		1.1	%
Less:
Operating expenses and real estate taxes		13,376		12,258		1,118	9.1	%		110,700		107,137		3,563		3.3	%

Net Operating Income (2) - cash basis	$	5,789	$	4,955	$	834	16.8	%	$	193,877	$	194,094	$	(217	)	-0.1	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income in accordance with GAAP, see page 46. For disclosures relating to our use of NOI see page 53.

(2)	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 53.

Boston Properties, Inc.

Second Quarter 2004

LEASING ACTIVITY

All In-Service Properties - quarter ended June 30, 2004


	Office			Office/Technical			Industrial			Total
Vacant space available @ 4/1/2004 (sf)		2,223,629			28,533			152,009			2,404,171
Property dispositions (sf)		(12,978	)		—			—			(12,978	)
Property acquisitions (sf)		1,494			—			—			1,494
Leases expiring or terminated 4/4/04-6/30/04 (sf)		838,718			57,575			—			896,293

Total space for lease (sf)		3,050,863			86,108			152,009			3,288,980

New tenants (sf)		491,240			24,661			—			515,901
Renewals (sf)		378,076			45,398			—			423,474

Total space leased (sf)		869,316			70,059			—			939,375	(1)

Space available @ 6/30/04 (sf)		2,181,547			16,049			152,009			2,349,605

Net (increase)/decrease in available space (sf)		42,082			12,484			—			54,566
Average lease term (months)		74			55			—			72
2nd generation TI/Comm PSF	$	24.99		$	10.04		$	—		$	23.59
Increase (decrease) in 2nd generation gross rents (2)		-4.47	%		-1.94	%		0.00	%		-4.41	%
Increase (decrease) in 2nd generation net rents (3)		-4.72	%		29.45	%		0.00	%		-3.78	%

(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 706,351.

(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 706,351.


	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	22,467	156,656	-4.76	%	-9.72	%	179,123
Washington	21,840	259,826	1.41	%	5.75	%	281,666
New York	—	82,594	-1.61	%	-4.86	%	82,594
San Francisco	145,029	125,481	-11.47	%	-12.34	%	270,510
Princeton		125,482	-10.52	%	-4.17	%	125,482

	189,336	750,039	-4.41	%	-3.78	%	939,375

Boston Properties, Inc.

Second Quarter 2004

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q2 2004		Q1 2004		2003		2002
Recurring capital expenditures	$	4,138	$	3,211	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		981		324		4,464		31,908
Hotel improvements, equipment upgrades and replacements		228		273		2,345		3,218

	$	5,347	$	3,808	$	25,323	$	51,800


*2nd Generation Tenant Improvements and Leasing Commissions (1)*
*(in thousands, except per share amounts)*
	Q2 2004		Q1 2004		2003		2002
Office
Square feet		679,980		494,330		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	24.99	$	26.33	$	14.41	$	20.17

Office/Technical
Square feet		70,059		81,426		169,893		347,321

Tenant improvement and lease commissions PSF	$	10.04	$	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	$	23.59	$	26.23	$	13.93	$	16.01

(1)	Based on leases executed during the period.

Boston Properties, Inc.

Second Quarter 2004

ACQUISITIONS/DISPOSITIONS

as of June 30, 2004

ACQUISITIONS

For the period from January 1, 2004 through June 30, 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	%
1330 Connecticut Avenue	Apr-04	259,403		88,000,000		9,200,000		97,200,000	99	%

Total Acquisitions		640,390	$	109,552,000	$	9,200,000	$	118,752,000	100	%

DISPOSITIONS

For the period from January 1, 2004 through June 30, 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
Decoverly Two, Three, Six and Seven (2)	Apr-04	155,000		42,000,000		11,383,000
The Arboretum	Apr-04	96,000		21,500,000		7,980,000
38 Cabot Boulevard	May-04	161,000		5,750,000		4,227,000
Burlington Mall Road Land Parcel	Jun-04	n/a		1,900,000		1,658,000

Total Dispositions		634,081	$	98,741,000	$	45,328,000

(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.

(2)	Buildings consist of two Class A office properties and two land parcels, one of which is subject to a ground lease.

Boston Properties, Inc.

Second Quarter 2004

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of June 30, 2004


Development Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment (2)		Total Construction Loan		Amount Drawn at June 30, 2004		Estimated Future Equity Requirement		Percentage Leased (3)
New Dominion Tech, Building Two	Q3 2004	Q3 2004	Herndon, VA	1	257,400	$	50,686,514	$	67,589,000	$	65,000,000	$	54,790,969	$	—	100	%
Times Square Tower	Q2 2004	Q2 2005	New York, NY	1	1,234,272		547,809,428		653,500,000		475,000,000		389,934,076		—	47	%
901 New York Avenue (25% ownership)	Q3 2004	Q3 2005	Washington, D.C.	1	538,463		29,995,963		44,777,000		30,000,000		17,153,738		—	80	%

Total Development Properties				3	2,030,135	$	628,491,905	$	765,866,000	$	570,000,000	$	461,878,783	$	—	62	%


*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 June 30, 2004		Estimated Future Equity Requirement		Percentage Leased
Total Developments Placed in Service				—	—	$	—	$	—	$	—	$	—	$	—	—

(1)	In accordance GAAP a project is classified as a Development in Progress when construction or supply contracts have been signed and physical improvements have commenced.

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

(3)	Represents percentage leased as of July 20, 2004.

Boston Properties, Inc.

Second Quarter 2004

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of June 30, 2004


Location	Acreage	Developable Square Feet
Rockville, MD	79.7	1,142,000
Dulles, VA	76.6	933,900
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Reston, VA	43.2	1,602,000
Boston, MA	0.5	776,000
Marlborough, MA	50.0	400,000
Weston, MA	74.0	350,000
Waltham, MA	4.3	202,000
Andover, MA	10.0	110,000
Washington, D.C.	0.5	170,000

	369.4	7,376,900

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of June 30, 2004


Location	Acreage	Developable Square Feet
Princeton, NJ (1)	149.9	1,900,000
Washington, D.C. (2)	4.6	1,432,000
Framingham, MA (3)	21.5	300,000
Cambridge, MA (4)	2.6	230,000

	178.6	3,862,000

(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)

In July 2004, the Company exercised its right to acquire, for approximately $3.4 million, this land parcel known as Cambridge Seven. In conjunction with the exercise of this option, the Company has entered into a built-to-suit agreement with the Massachusetts Institute of Technology (MIT) to lease a 231,000 square foot research laboratory which will be developed on the site. This development will be included in the construction in progress schedule beginning in Q3 2004.

Boston Properties, Inc.

Second Quarter 2004

Definitions

This section contains an explanation of certain non-GAAP financial measures we provide in other sections of this document, as well as 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 assets 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 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 “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

Exhibit 99.2

LOGO

111 Huntington Avenue

Boston, MA 02199

(NYSE: BXP)


AT THE COMPANY		AT FINANCIAL RELATIONS BOARD
Michael Walsh,		Marilynn Meek – General Info.
Vice President, Finance		(212) 445-8431
(617) 236-3410

Kathleen DiChiara		Timothy Grace – Media
Investor Relations Manager		(312) 640-6667
(617) 236-3343

BOSTON PROPERTIES, INC. ANNOUNCES

SECOND QUARTER 2004 RESULTS


Reports diluted FFO per share of $1.05		Reports diluted EPS of $0.80

BOSTON, MA, July 20, 2004 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the second quarter ended June 30, 2004.

Funds from Operations (FFO) for the quarter ended June 30, 2004 were $116.9 million, or $1.09 per share basic and $1.05 per share diluted. This compares to FFO for the quarter ended June 30, 2003 of $103.4 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 107,215,662 and 115,207,736, respectively, for the quarter ended June 30, 2004 and 96,530,769 and 107,408,373, respectively, for the same quarter last year.

Net income available to common shareholders was $87.1 million for the three months ended June 30, 2004, compared to $63.2 million for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2004 was $0.81 basic and $0.80 on a diluted basis. This compares to EPS for the second quarter of 2003 of $0.66 basic and $0.64 on a diluted basis. EPS includes $0.19 and $0.04 on a diluted basis, related to net gains on sales of properties and other assets for the quarters ended June 30, 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 June 30, 2004. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of June 30, 2004, the Company’s portfolio consisted of 126 properties comprising approximately 43.6 million square feet, including three properties under construction totaling 2.0 million square feet. The overall percentage of leased space for the 120 properties in service as of June 30, 2004 was 92.5%.

Significant events of the second quarter include:

•	The Company increased its quarterly dividend payable to holders of the Company’s Common Stock from $0.63 per share to $0.65 per share. This represents a 3.2% increase.

•	The Company sold the following four non-core buildings aggregating approximately 411,000 square feet and three 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
5/21/04	38 Cabot Boulevard located in Langhorne, Pennsylvania (one industrial building)	$ 5.8 million
6/10/04	Burlington Mall Road located in Burlington, Massachusetts (one land parcel)	$ 1.9 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 $86.6 million. In addition, the Company paid $1.4 million of closing costs and will be obligated to fund $9.2 million for tenant and capital improvements during the first two years of ownership. The acquisition was financed with the assumption of mortgage indebtedness secured by the property totaling $52.4 million (which bears interest at a fixed rate of 7.58% per annum and matures in 2011) and available cash. The property is 99% leased.

•

On April 26, 2004, the Company amended its lease with Genentech at its 611 Gateway Boulevard property in South San Francisco, California to expand into an additional 111,273 square feet with an expected term commencement in December 2004. With the expansion, Genentech will occupy the entire building consisting of 256,302 square feet.

•

On May 4, 2004, 1,070,437 Series Two Preferred Units of the Company’s Operating Partnership were converted by the holders into 1,404,772 common Operating Partnership Units, which common Operating Partnership Units were subsequently redeemed by the Company in exchange for an equal number of shares of Common Stock.

•	On May 5, 2004, during the Annual Meeting of Stockholders, Carol B. Einiger was elected as a new independent member of the Company’s Board of Directors by the Company’s Stockholders.

•

On May 27, 2004, the Company executed a contract for the sale of 560 Forbes Boulevard, an industrial property totaling approximately 40,000 square feet located in South San Francisco, California, for $4.0 million. The Company has a 35.7% interest in this property. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated on the terms currently contemplated or at all, we expect the transaction will close by the end of November 2004.

•

On June 21, 2004, the Company executed a contract for the sale of Sugarland Business Park - Building One, an office/technical property totaling approximately 52,000 square feet located in Herndon, Virginia, for $7.8 million. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated on the terms currently contemplated or at all, we expect the transaction will close by the end of August 2004.

•	On June 25, 2004, the Company signed a new lease with the law firm Heller, Ehrman, White & McAuliffe totaling 133,733 square feet at Times Square Tower. Times Square Tower, which had an initial occupancy in April of this year, is now approximately 47% leased.

Transactions completed subsequent to June 30, 2004:

•

On July 14, 2004, the Company broke ground for the construction of Seven Cambridge Center, a build-to-suit project with approximately 231,000 square feet of office, research laboratory and retail space located in Cambridge, Massachusetts. The Company has signed a lease with the Massachusetts Institute of Technology (MIT) for the Eli and Edythe L. Broad Institute to occupy 100% of the space. The Company expects that the building will be complete and available for occupancy during the first quarter of 2006.

EPS and FFO Per Share Guidance:

The Company’s guidance for the third 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.


	Third Quarter 2004					Full Year 2004
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	0.62	-	$	0.63	$	2.67	-	$	2.72

Add:
Projected Company Share of Real Estate Depreciation and Amortization	$	0.43	-	$	0.43	$	1.73	-	$	1.73

Less:
Gains on Sales of Real Estate	$	0.02	-	$	0.02	$	0.30	-	$	0.30

Projected FFO per Share (diluted)	$	1.03	-	$	1.04	$	4.10	-	$	4.15

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, July 21, 2004 at 10:00 AM (Eastern Time), open to the general public, to discuss the second 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 July 28, 2004 by dialing (800) 405-2236 and entering the passcode 11002007. 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’ second 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 third quarter of 2004 and the full year 2004.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended June 30,						Six months ended June 30,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	265,397		$	246,943		$	520,937		$	492,362
Recoveries from tenants		39,421			36,902			80,246			76,362
Parking and other		14,094			13,945			27,292			28,139

Total rental revenue		318,912			297,790			628,475			596,863
Hotel revenue		19,166			17,213			32,344			30,459
Development and management services		5,965			5,429			9,291			10,019
Interest and other		1,090			663			8,618			1,078

Total revenue		345,133			321,095			678,728			638,419

Expenses
Operating:
Rental		101,864			94,990			202,832			193,332
Hotel		13,376			12,258			25,054			23,429
General and administrative		12,493			11,028			25,093			22,427
Interest		74,789			75,447			149,094			149,092
Depreciation and amortization		60,737			50,323			117,064			99,760
Net derivative losses		—			991			—			1,923
Losses from early extinguishments of debt		—			—			6,258			1,474

Total expenses		263,259			245,037			525,395			491,437

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 and discontinued operations		81,874			76,058			153,333			146,982
Minority interests in property partnerships		1,238			268			1,566			696
Income from unconsolidated joint ventures		879			1,353			2,256			4,011

Income before minority interest in Operating Partnership, gains on sales of real estate and other assets and discontinued operations		83,991			77,679			157,155			151,689
Minority interest in Operating Partnership		(17,908	)		(18,924	)		(35,227	)		(37,237	)

Income before gains on sales of real estate and other assets and discontinued operations		66,083			58,755			121,928			114,452
Gains on sales of real estate and other assets, net of minority interest		1,377			3,546			8,108			56,513

Income before discontinued operations		67,460			62,301			130,036			170,965
Discontinued Operations:
Income from discontinued operations, net of minority interest		69			935			1,015			3,849
Gains on sales of real estate from discontinued operations, net of minority interest		19,589			—			22,010			73,611

Net income available to common shareholders	$	87,118		$	63,236		$	153,061		$	248,425

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.63		$	0.65		$	1.25		$	1.78
Discontinued operations, net of minority interest		0.18			0.01			0.22			0.80

Net income available to common shareholders	$	0.81		$	0.66		$	1.47		$	2.58

Weighted average number of common shares outstanding		107,216			96,531			104,053			96,134

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.62		$	0.63		$	1.22		$	1.75
Discontinued operations, net of minority interest		0.18			0.01			0.22			0.80

Net income available to common shareholders	$	0.80		$	0.64		$	1.44		$	2.55

Weighted average number of common and common equivalent shares outstanding		109,016			98,213			106,255			97,454

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	June 30, 2004			December 31, 2003
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	8,427,296		$	8,202,958
Development in progress		606,012			542,600
Land held for future development		230,155			232,098
Real estate held for sale, net		5,756			5,604
Less: accumulated depreciation		(1,099,715	)		(1,001,435	)

Total real estate		8,169,504			7,981,825

Cash and cash equivalents		227,698			22,686
Cash held in escrows		27,888			21,321
Tenant and other receivables, net of allowance for doubtful accounts of $3,026 and $3,157, respectively		11,637			18,425
Accrued rental income, net of allowance of $4,895 and $5,030, respectively		215,536			189,852
Deferred charges, net		212,666			188,855
Prepaid expenses and other assets		33,388			39,350
Investments in unconsolidated joint ventures		83,950			88,786

Total assets	$	8,982,267		$	8,551,100

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,524,202		$	3,471,400
Unsecured senior notes, net of discount		1,470,501			1,470,320
Unsecured line of credit		—			63,000
Accounts payable and accrued expenses		91,790			92,026
Dividends and distributions payable		91,350			84,569
Interest rate contracts		4,800			8,191
Accrued interest payable		50,318			50,931
Other liabilities		89,145			80,367

Total liabilities		5,322,106			5,320,804

Commitments and contingencies		—			—

Minority interests		804,172			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, 108,239,387 and 98,309,077 shares issued and 108,160,487 and 98,230,177 shares outstanding in 2004 and 2003, respectively		1,082			982
Additional paid-in capital		2,544,278			2,104,158
Earnings in excess of dividends		336,704			320,900
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(7,367	)		(6,820	)
Accumulated other comprehensive loss		(15,986	)		(16,335	)

Total stockholders’ equity		2,855,989			2,400,163

Total liabilities and stockholders’ equity	$	8,982,267		$	8,551,100

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended June 30,						Six months ended June 30,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	87,118		$	63,236		$	153,061		$	248,425

Add:
Minority interest in Operating Partnership		17,908			18,924			35,227			37,237
Less:
Minority interests in property partnerships		1,238			268			1,566			696
Income from unconsolidated joint ventures		879			1,353			2,256			4,011
Gains on sales of real estate and other assets, net of minority interest		1,377			3,546			8,108			56,513
Income from discontinued operations, net of minority interest		69			935			1,015			3,849
Gains on sales of real estate from discontinued operations, net of minority interest		19,589			—			22,010			73,611

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 and discontinued operations		81,874			76,058			153,333			146,982

Add:
Real estate depreciation and amortization		61,919			52,338			119,792			104,129
Income from discontinued operations		83			1,157			1,230			4,721
Income from unconsolidated joint ventures		879			1,353			2,256			4,011
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		(158	)		(842	)		(1,062	)		(1,708	)
Preferred distributions		(3,813	)		(5,852	)		(8,198	)		(11,623	)

Funds from operations		140,784			124,212			267,351			247,986

Add:
Net derivative losses (SFAS No. 133)		—			991			—			1,923

Funds from operations before net derivative losses (SFAS No. 133)	$	140,784		$	125,203		$	267,351		$	249,909

Funds from operations available to common shareholders before net derivative losses (SFAS No. 133)	$	116,904		$	103,360		$	220,696		$	206,096

Weighted average shares outstanding - basic		107,216			96,531			104,053			96,134

FFO per share basic before net derivative losses (SFAS No. 133)	$	1.09		$	1.07		$	2.12		$	2.14

FFO per share basic after net derivative losses (SFAS No. 133)	$	1.09		$	1.06		$	2.12		$	2.13

Weighted average shares outstanding - diluted		115,208			107,408			112,895			106,652

FFO per share diluted before net derivative losses (SFAS No. 133)	$	1.05		$	1.03		$	2.04		$	2.06

FFO per share diluted after net derivative losses (SFAS No. 133)	$	1.05		$	1.02		$	2.04		$	2.04

(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.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	June 30, 2004		December 31, 2003
Greater Boston	89.2	%	88.9	%
Greater Washington, D.C.	97.2	%	95.1	%
Midtown Manhattan	98.6	%	99.4	%
Baltimore, MD	94.7	%	95.1	%
Richmond, VA	91.7	%	89.2	%
Princeton/East Brunswick, NJ	89.6	%	93.4	%
Greater San Francisco	83.4	%	82.4	%
Bucks County, PA	N/A		100.0	%

Total Portfolio	92.5	%	92.1	%


	% Leased by Type
	June 30, 2004		December 31, 2003
Class A Office Portfolio	92.7	%	92.7	%
Office/Technical Portfolio	96.7	%	89.4	%
Industrial Portfolio	20.8	%	56.6	%

Total Portfolio	92.5	%	92.1	%