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FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 26, 2004

BOSTON PROPERTIES, INC.

(Exact name of registrant as specified in charter)


Delaware	1-13087	04-2473675
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

111 Huntington Avenue, Suite 300, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K is furnished under Item 2.02—“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 October 26, 2004, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the third 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.

Item 9.01. Financial Statements and Exhibits.

(c) Exhibits.


Exhibit No.		Description

*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2004.

*99.2		Press release dated October 26, 2004.

* Filed herewith.

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.

BOSTON PROPERTIES, INC.

Date: October 26, 2004

By: /s/ Douglas T. Linde

Douglas T. Linde

Chief Financial Officer

EXHIBIT INDEX


Exhibit No.		Description

*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2004.

*99.2		Press release dated October 26, 2004.

* Filed herewith.

SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2004

Boston Properties, Inc.

Third 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.

Third 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 thirty individuals average twenty-four years of real estate experience and fifteen years with Boston Properties. Chairman Mortimer Zuckerman is nationally-known, serving as Chairman and Editor-in-Chief of U.S. News and World Report and Chairman and Publisher of the New York Daily News. He holds an undergraduate degree from McGill University, a law degree from Harvard University and an MBA from the Wharton School, University of Pennsylvania. President and CEO, Edward Linde, serves on a number of corporate and philanthropic boards, including 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 consistent 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 September 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		44.1 million
Common Shares and Units Outstanding (as converted)		136.3 million
Dividend — Quarter/Annualized		$0.65/$2.60
Dividend Yield		4.69%
Total Market Capitalization		$12.6 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Third 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	BXP	Boston Properties, Inc. 111 Huntington Avenue, Suite 300	Financial inquiries should be directed to Michael Walsh,
Boston, MA 02199 (t) 617.236.3300 (f) 617.236.3311	Stock Exchange Listing New York Stock Exchange	Boston, MA 02199 (t) 617.236.3322 (f) 617.236.3311	Vice President, Finance, at 617.236.3410 or mwalsh@bostonproperties.com
		investor_relations@bostonproperties.com www.bostonproperties.com	Investor or media inquires should be directed to Kathleen DiChiara, Investor Relations Manager, at 617.236.3343 or kdichiara@bostonproperties.com

Common Stock Data (NYSE: BXP)

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


	Q3 2004			Q2 2004			Q1 2004			Q4 2003			Q3 2003
High Price	$	56.29		$	55.54		$	54.89		$	48.47		$	45.50
Low Price	$	49.86		$	43.63		$	46.69		$	43.40		$	41.26
Average Price	$	53.57		$	48.15		$	51.06		$	46.02		$	43.35
Closing Price, at the end of the quarter	$	55.39		$	50.08		$	54.31		$	48.19		$	43.47
Dividends per share - annualized⁽¹⁾	$	2.60		$	2.60		$	2.52		$	2.52		$	2.52
Closing dividend yield - annualized		4.69	%		5.19	%		4.64	%		5.23	%		5.80	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		136,277			135,889			135,582			127,683			127,037
Closing market value of shares and units outstanding (thousands)	$	7,548,404		$	6,805,321		$	7,363,458		$	6,153,044		$	5,522,298

⁽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:


Fourth Quarter		Late January

Boston Properties, Inc.

Third Quarter 2004

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage

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

Ross Nussbaum / John Kim	David Shulman / David Toti	Susan Berliner / Dan Mooney	John Forrey
Banc of America Securities	Lehman Brothers	Bear Stearns & Company	Merrill Lynch & Company
212.847.5668 / 212.847.5761	212.526.3413 / 212.526.2002	212.272.3824 / 212.272.0217	212.449.1812

Ross Smotrich / Jeffrey Langbaum	Steve Sakwa / Brian Legg	Thierry Perrein	Thomas Cook
Bear Stearns & Company	Merill Lynch & Company	Credit Suisse First Boston	Smith Barney Citigroup
212.272.8046 / 212.272.4201	212.449.0335 / 212.449.1153	212.538.8618	212.723.1112

Louis Taylor / Christoper Capolongo	Gregory Whyte / David Cohen	Scott O’Shea
Deutsche Bank Securities	Morgan Stanley & Company	Deutsche Bank Securities
212.250.4912 / 212.250.7726	212.761.6331 / 212.761.8564	212.250.7190

David Loeb / Gustavo Sarago	James Sullivan /James Feldman
Friedman, Billings, Ramsey & Co.	Prudential Equity Group
703.469.1289 / 703.469.1042	212.778.2515 / 212.778.1724	Rating Agencies:

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

Jim Sullivan / Michael Knott	Jonathan Litt / John Stewart	Karen Nickerson
Green Street Advisors	Smith Barney Citigroup	Moody’s Investors Service
949.640.8780	212.816.0231 / 212.816.1685	212.553.4924

Anthony Paolone / Michael Mueller	Keith Mills /Srikanth Nagarajan	James Fielding
J.P. Morgan Securities	UBS Securities	Standard & Poor’s
212.622.6682 / 212.622.6689	212.713.3098 / 212.713.6144	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.

Third 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
	September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003
Income Items:
Revenue	$	359,716		$	344,860		$	333,330		$	333,908		$	328,028
Straight line rent (SFAS 13)	$	16,954		$	13,487		$	11,620		$	14,536		$	12,144
Fair value lease revenue (SFAS 141) ⁽¹⁾	$	241		$	268		$	(83	)	$	(53	)	$	(577	)
Lease termination fees (included in revenue) ⁽²⁾	$	1,800		$	—		$	1,558		$	1,401		$	1,735
Capitalized interest	$	1,758		$	3,539		$	4,831		$	5,192		$	4,954
Capitalized wages	$	1,459		$	1,565		$	1,357		$	1,209		$	1,288
Operating Margins [(rental revenue - rental expenses)/rental revenue] ⁽³⁾		67.2	%		69.4	%		69.6	%		69.5	%		67.1	%
Net income available to common shareholders	$	68,542		$	87,118		$	66,048		$	60,592		$	56,970
Funds from operations (FFO) available to common shareholders before net derivative gains ⁽⁴⁾	$	119,937		$	116,904		$	103,831		$	106,931		$	99,057
FFO per share before net derivative gains - diluted ⁽⁴⁾	$	1.07		$	1.05		$	0.99		$	1.05		$	0.98
Net income available to common shareholders per share - basic	$	0.63		$	0.81		$	0.65		$	0.62		$	0.59
Net income available to common shareholders per share - diluted	$	0.62		$	0.79		$	0.64		$	0.61		$	0.57
Dividends per share	$	0.65		$	0.65		$	0.63		$	0.63		$	0.63
Funds available for distribution to common shareholders and common unitholders (FAD) ⁽⁵⁾	$	101,147		$	109,181		$	98,135		$	85,496		$	100,842

Ratios:
Interest Coverage Ratio (excluding capitalized interest) - cash basis ⁽⁶⁾		2.74			2.80			2.66			2.68			2.58
Interest Coverage Ratio (including capitalized interest) - cash basis⁽⁶⁾		2.68			2.67			2.50			2.50			2.42
FFO Payout Ratio ⁽⁷⁾		60.75	%		61.90	%		63.64	%		60.00	%		64.29	%
FAD Payout Ratio ⁽⁸⁾		83.73	%		77.52	%		82.49	%		88.86	%		74.33	%

	September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003
Capitalization:
Total Debt	$	5,016,069		$	4,994,703		$	4,910,761		$	5,004,720		$	4,920,343
Price @ Quarter End	$	55.39		$	50.08		$	54.31		$	48.19		$	43.47
Equity Value @ Quarter End	$	7,548,404		$	6,805,321		$	7,363,458		$	6,153,044		$	5,522,298
Total Market Capitalization ⁽⁹⁾	$	12,564,473		$	11,800,024		$	12,274,219		$	11,157,764		$	10,442,641
Debt/Total Market Capitalization ⁽⁹⁾		39.92	%		42.33	%		40.01	%		44.85	%		47.12	%

⁽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.

⁽³⁾

Rental Expenses include operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $8,312, $5,900, $6,370, $6,620 and $8,742 for the three months ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

⁽⁴⁾	For a quantitative reconciliation of the differences between FFO before net derivative gains 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, 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- 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 12.

Boston Properties, Inc.

Third Quarter 2004

CONSOLIDATED BALANCE SHEETS

(in thousands)


	September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003
	(unaudited)			(unaudited)			(unaudited)			(unaudited)			(unaudited)
ASSETS
Real estate	$	9,053,584		$	8,427,296		$	8,272,848		$	8,202,958		$	8,060,525
Construction in progress		19,279			606,012			579,751			542,600			481,571
Land held for future development		221,901			230,155			228,361			232,098			232,361
Real estate held for sale		45			5,756			42,449			5,604			—
Less accumulated depreciation		(1,151,896	)		(1,099,715	)		(1,047,911	)		(1,001,435	)		(952,754	)

Total real estate		8,142,913			8,169,504			8,075,498			7,981,825			7,821,703
Cash and cash equivalents		213,873			227,698			182,151			22,686			37,621
Escrows		24,137			27,888			25,666			21,321			27,992
Tenant and other receivables, net		12,936			11,637			14,962			18,425			21,813
Accrued rental income, net		232,143			215,536			202,604			189,852			175,063
Deferred charges, net		240,834			212,666			196,598			188,855			178,819
Prepaid expenses and other assets		57,302			33,388			56,001			39,350			57,012
Investments in unconsolidated joint ventures		88,276			83,950			83,555			88,786			88,632

Total assets	$	9,012,414		$	8,982,267		$	8,837,035		$	8,551,100		$	8,408,655

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,545,477		$	3,524,202		$	3,440,351		$	3,471,400		$	3,450,112
Unsecured senior notes, net of discount		1,470,592			1,470,501			1,470,410			1,470,320			1,470,231
Unsecured line of credit		—			—			—			63,000			—
Accounts payable and accrued expenses		88,124			91,790			110,002			92,026			69,940
Dividends and distributions payable		90,942			91,350			89,166			84,569			83,972
Interest rate contracts		2,928			4,800			6,417			8,191			9,875
Accrued interest payable		41,007			50,318			41,984			50,931			44,010
Other liabilities		89,813			89,145			79,390			80,367			69,242

Total liabilities		5,328,883			5,322,106			5,237,720			5,320,804			5,197,382

Commitments and contingencies		—			—			—			—			—

Minority interests		790,758			804,172			851,901			830,133			829,779

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, 108,986,697, 108,160,487, 106,442,998, 98,230,177 and 97,577,665 outstanding, respectively		1,090			1,082			1,064			982			976
Additional paid-in capital		2,582,036			2,544,278			2,453,215			2,104,158			2,084,490
Earnings in excess of dividends		334,736			336,704			319,890			320,900			322,530
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(6,555	)		(7,367	)		(7,872	)		(6,820	)		(7,271	)
Accumulated other comprehensive loss		(15,812	)		(15,986	)		(16,161	)		(16,335	)		(16,509	)

Total stockholders’ equity		2,892,773			2,855,989			2,747,414			2,400,163			2,381,494

Total liabilities and stockholders’ equity	$	9,012,414		$	8,982,267		$	8,837,035		$	8,551,100		$	8,408,655

Boston Properties, Inc.

Third Quarter 2004

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Sep-04			30-Jun-04			31-Mar-04			31-Dec-03			30-Sep-03
Revenue:
Rental
Base Rent	$	274,138		$	265,139		$	255,313		$	256,359		$	251,391
Recoveries from tenants		43,415			39,406			40,787			37,838			41,146
Parking and other		15,652	⁽¹⁾		14,094			13,198			12,213			13,244

Total rental revenue		333,205			318,639			309,298			306,410			305,781
Hotel revenues		19,768			19,166			13,178			22,082			17,542
Development and management services		5,835			5,965			3,326			4,550			3,616
Interest and other		908			1,090			7,528	⁽²⁾		866			1,089

Total revenue		359,716			344,860			333,330			333,908			328,028

Expenses:
Operating		65,111			60,238			61,022			58,328			65,726
Real estate taxes		44,284			41,514			39,834			39,927			40,219
Hotel operating		13,709			13,376			11,678			15,992			12,829
General and administrative		13,002			12,493			12,600			11,749			11,183
Interest⁽³⁾		77,698			74,789			74,305			75,001			75,343
Depreciation and amortization		66,523			60,704			56,294			55,825			52,991
Net derivative gains		—			—			—			—			(885	)
Loss from early extinguishment of debt		—			—			6,258			—			—

Total expenses		280,327			263,114			261,991			256,822			257,406

Income before minority interests and income from unconsolidated joint ventures		79,389			81,746			71,339			77,086			70,622
Minority interest in property partnerships		1,447			1,292			385			370			648
Income from unconsolidated joint ventures		460			879			1,377			662			1,343

Income before minority interest in Operating Partnership		81,296			83,917			73,101			78,118			72,613
Minority interest in Operating Partnership ⁽⁴⁾		(16,993	)		(17,895	)		(17,265	)		(18,675	)		(17,913	)

Income before gains on sales of real estate and other assets		64,303			66,022			55,836			59,443			54,700
Gains on sales of real estate and other assets, net of minority interest		—			1,377			6,698			—			1,341

Income before discontinued operations		64,303			67,399			62,534			59,443			56,041
Income from discontinued operations, net of minority interest		89			130			993			1,149			929
Gains on sales of real estate from discontinued operations, net of minority interest		4,150			19,589			2,521			—			—

Net income available to common shareholders	$	68,542		$	87,118		$	66,048		$	60,592		$	56,970

INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	0.63		$	0.81		$	0.65		$	0.62		$	0.59

Net income available to common shareholders per share - diluted	$	0.62		$	0.79		$	0.64		$	0.61		$	0.57

⁽¹⁾	Includes $1.8 million from the settlement of an ongoing litigation.

⁽²⁾	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.

⁽³⁾	Interest expense is reported net of capitalized interest of $1,758, $3,539, $4,831, $5,192 and $4,954 for the three months ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

⁽⁴⁾

Equals minority interest share of 16.75%, 16.96%, 17.96%, 18.59% and 18.08% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

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

Boston Properties, Inc.

Third Quarter 2004

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Sep-04			30-Jun-04		31-Mar-04		31-Dec-03		30-Sep-03
Net income available to common shareholders	$	68,542		$	87,118	$	66,048	$	60,592	$	56,970
Add:
Minority interest in Operating Partnership		16,993			17,895		17,265		18,675		17,913
Less:
Minority interest in property partnerships		1,447			1,292		385		370		648
Income from unconsolidated joint ventures		460			879		1,377		662		1,343
Gain on sales of real estate and other assets, net of minority interest		—			1,377		6,698		—		1,341
Income from discontinued operations, net of minority interest		89			130		993		1,149		929
Gain on sales of real estate from discontinued operations, net of minority interest		4,150			19,589		2,521		—		—

Income before minority interests and income from unconsolidated joint ventures		79,389			81,746		71,339		77,086		70,622
Add:
Real estate depreciation and amortization⁽¹⁾		67,538			61,919		57,873		57,500		54,606
Income from discontinued operations		160			211		1,267		1,490		1,218
Income from unconsolidated joint ventures		460			879		1,377		662		1,343
Less:
Minority property partnership’s share of funds from operations		(17	)		158		904		945		805
Preferred dividends and distributions		3,491			3,813		4,385		4,443		5,183

Funds from operations (FFO)		144,073			140,784		126,567		131,350		121,801
Less:
Net derivative gains (SFAS No. 133)		—			—		—		—		(885	)

FFO before net derivative gains (SFAS No. 133)	$	144,073		$	140,784	$	126,567	$	131,350	$	120,916
Less:
Minority interest in Operating Partnership’s share of funds from operations		24,136			23,880		22,736		24,419		21,859

FFO available to common shareholders before net derivative gains (SFAS No. 133) ⁽²⁾	$	119,937		$	116,904	$	103,831	$	106,931	$	99,057

FFO per share before net derivative gains (SFAS No. 133) - basic	$	1.11		$	1.09	$	1.03	$	1.09	$	1.02

Weighted average shares outstanding - basic		108,339			107,216		100,890		97,945		97,360

FFO per share before net derivative gains (SFAS No. 133) - diluted	$	1.07		$	1.05	$	0.99	$	1.05	$	0.98

FFO per share after net derivative gains (SFAS No. 133) - diluted	$	1.07		$	1.05	$	0.99	$	1.05	$	0.99

Weighted average shares outstanding - diluted		116,149			115,208		110,577		107,188		107,231

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	September 30, 2004			June 30, 2004			March 31, 2004			December 31,2003			September 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	$	144,073	130,141	$	140,784	129,116	$	126,567	122,983	$	131,350	120,312	$	120,916	118,846
Effect of Dilutive Securities
Convertible Preferred Units		3,491	5,568		3,813	6,192		4,385	7,087		4,443	7,087		5,183	8,047
Stock Options and other		—	2,242		—	1,800		—	2,599		—	2,155		—	1,823

Diluted FFO before net derivative gains (SFAS No. 133)	$	147,564	137,951	$	144,597	137,108	$	130,952	132,669	$	135,793	129,554	$	126,099	128,716
Less:
Minority interest in Operating Partnership’s share of diluted funds from operations		23,321	21,802		23,097	21,900		21,806	22,092		23,444	22,366		21,048	21,485

Company’s share of diluted FFO before net derivative gains (SFAS No. 133) ⁽³⁾	$	124,243	116,149	$	121,500	115,208	$	109,146	110,577	$	112,349	107,188	$	105,051	107,231

FFO per share before net derivative gains (SFAS No. 133) - basic	$	1.11		$	1.09		$	1.03		$	1.09		$	1.02

FFO per share before net derivative gains (SFAS No. 133) - diluted	$	1.07		$	1.05		$	0.99		$	1.05		$	0.98

⁽¹⁾

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $66,523, $60,704, $56,294, $55,825 and $52,991, our share of unconsolidated joint venture real estate depreciation and amortization of $1,636, $1,683, $1,697, $1,874 and $1,821 and depreciation and amortization from discontinued operations of $37, $149, $499, $504 and $465, less corporate related depreciation of $658, $617, $617, $703 and $670 for the three months ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2004 and September 30, 2004, respectively.

⁽²⁾	Based on weighted average shares for the quarter. Company’s share for the quarter ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003 was 83.25%, 83.04%, 82.04%, 81.41% and 81.92%, respectively.

⁽³⁾	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003 was 84.20%, 84.03%, 83.35%, 82.74% and 83.31%, respectively.

Boston Properties, Inc.

Third Quarter 2004

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003
Funds from operations (FFO) before net derivative gains (see page 9)	$	144,073		$	140,784		$	126,567		$	131,350		$	120,916
2nd generation tenant improvements and leasing commissions		(19,583	)		(17,693	)		(15,102	)		(23,190	)		(5,606	)
Straight-line rent		(16,954	)		(13,487	)		(11,620	)		(14,536	)		(12,144	)
Recurring capital expenditures		(6,831	)		(4,138	)		(3,211	)		(8,413	)		(3,415	)
Fair value interest adjustment		(793	)		(787	)		(340	)		(337	)		(261	)
Fair value lease revenue (SFAS 141)		(241	)		(268	)		83			53			577
Hotel improvements, equipment upgrades and replacements		(238	)		(228	)		(273	)		(676	)		(353	)
Non real estate depreciation		658			617			617			703			670
Stock-based compensation		955			933			1,279			451			434
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		101			3,448			135			91			24

Funds available for distribution to common shareholder and common unitholders (FAD)	$	101,147		$	109,181		$	98,135		$	85,496		$	100,842

Interest Coverage Ratios

(in thousands, except for ratio amounts)


	Three Months Ended
	September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003			September 30, 2003
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	79,389		$	81,746		$	71,339		$	77,086		$	70,622
Interest expense		77,698			74,789			74,305			75,001			75,343
Depreciation		66,523			60,704			56,294			55,825			52,991
Depreciation from joint ventures		1,636			1,683			1,697			1,874			1,821
Income from unconsolidated joint ventures		460			879			1,377			662			1,343
Discontinued Operations - depreciation		37			149			499			504			465
Discontinued operations		160			211			1,267			1,490			1,218
Straight-line rent		(16,954	)		(13,487	)		(11,620	)		(14,536	)		(12,144	)
Net derivative gains		—			—			—			—			(885	)
Fair value lease revenue (SFAS 141)		(241	)		(268	)		83			53			577

Subtotal		208,708			206,406			195,241			197,959			191,351
Divided by:
Interest expense ⁽¹⁾		76,242			73,683			73,305			73,975			74,214
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		76,242			73,683			73,305			73,975			74,214
Interest Coverage Ratio		2.74			2.80			2.66			2.68			2.58

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	79,389		$	81,746		$	71,339		$	77,086		$	70,622
Discontinued operations		160			211			1,267			1,490			1,218
Interest expense		77,698			74,789			74,305			75,001			75,343
Depreciation		66,523			60,704			56,294			55,825			52,991
Depreciation from joint ventures		1,636			1,683			1,697			1,874			1,821
Income from unconsolidated joint ventures		460			879			1,377			662			1,343
Net derivative gains		—			—			—			—			(885	)
Fair value lease revenue (SFAS 141)		(241	)		(268	)		83			53			577
Straight-line rent		(16,954	)		(13,487	)		(11,620	)		(14,536	)		(12,144	)
Discontinued Operations - depreciation		37			149			499			504			465

Subtotal		208,708			206,406			195,241			197,959			191,351
Divided by:
Interest expense ^{(1) (2)}		78,000			77,222			78,136			79,167			79,168
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		78,000			77,222			78,136			79,167			79,168
Interest Coverage Ratio		2.68			2.67			2.50			2.50			2.42

⁽¹⁾	Excludes amortization of financing costs of $1,456, $1,106, $1,000, $1,026 and $1,129 for the quarters ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

⁽²⁾	Includes capitalized interest of $1,758, $3,539, $4,831, $5,192 and $4,954 for the quarters ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

Boston Properties, Inc.

Third 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 September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.


	Three Months Ended
	30-Sep-04		30-Jun-04		31-Mar-04		31-Dec-03		30-Sep-03
Total Revenue ⁽¹⁾	$	354	$	521	$	2,256	$	2,658	$	3,074
Expenses:
Operating		157		161		490		664		1,391
Depreciation and amortization		37		149		499		504		465

Total Expenses		194		310		989		1,168		1,856
Income before minority interests		160		211		1,267		1,490		1,218
Minority interest in property partnership		53		54		57		78		84
Minority interest in Operating Partnership		18		27		217		263		205

Income from discontinued operations (net of minority interest)	$	89	$	130	$	993	$	1,149	$	929

Properties:
		Sugarland Business Park - Building One 204 Second Ave Forbes Boulevard		Sugarland Business Park - Building One 204 Second Ave Forbes Boulevard Decoverly Two, Three, Six and Seven 38 Cabot Boulevard The Arboretum		Sugarland Business Park - Building One 204 Second Ave Forbes Boulevard Decoverly Two, Three, Six and Seven 38 Cabot Boulevard The Arboretum 430 Rozzi Place Sugarland Business Park - Building Two		Sugarland Business Park - Building One 204 Second Ave Forbes Boulevard Decoverly Two, Three, Six and Seven 38 Cabot Boulevard The Arboretum 430 Rozzi Place Sugarland Business Park - Building Two		Sugarland Business Park - Building One 204 Second Ave Forbes Boulevard Decoverly Two, Three, Six and Seven 38 Cabot Boulevard The Arboretum 430 Rozzi Place Sugarland Business Park - Building Two

⁽¹⁾	The impact of the straight-line rent adjustment increased (decreased) revenue by $3, $64, ($21), ($30) and $5 for the three months ended September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003, respectively.

Boston Properties, Inc.

Third Quarter 2004

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal September 30, 2004
Mortgage Notes Payable	$	3,545,477
Unsecured Line of Credit		—
Unsecured Senior Notes, net of discount		1,470,592

Total Debt	$	5,016,069

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	$	1,536		$	278		$	375		$	2,219			4,408

Unsecured Senior Notes, net of discount	$	248,464		$	299,722		$	174,625		$	747,781		$	1,470,592

Equity

(in thousands)


	Shares/Units Outstanding	Common Stock Equivalents		Equivalent ⁽¹⁾
Common Stock	108,987	108,987	⁽²⁾	$	6,036,790
Operating Partnership Units	21,877	21,877	⁽³⁾		1,211,767
Series Two Preferred Operating Partnership Units	4,125	5,413			299,847

Total Equity		136,277		$	7,548,404

Total Debt					5,016,069

Total Market Capitalization				$	12,564,473

⁽¹⁾	Value based on September 30, 2004 closing price of $55.39 per share of common stock.

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

⁽³⁾	Includes 170 long-term incentive plan units, of which 2 units are vested as of September 30, 2004.

Boston Properties, Inc.

Third Quarter 2004

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2004			2005			2006			2007			2008			Thereafter			Total
Floating Rate Debt	$	—		$	—		$	—		$	415,649		$	—		$	—		$	415,649
Fixed Rate Debt		12,658			279,053			307,983			187,305			974,747			2,838,674			4,600,420

Total Debt	$	12,658		$	279,053		$	307,983		$	602,954		$	974,747		$	2,838,674		$	5,016,069

Weighted Average Floating Rate Debt		—			—			—			2.78	%		—			—			2.78	%
Weighted Average Fixed Rate Debt		7.12	%		7.03	%		6.28	%		6.61	%		6.81	%		6.62	%		6.66	%

Total Weighted Average Rate		7.12	%		7.03	%		6.28	%		3.97	%		6.81	%		6.62	%		6.34	%

Unsecured Debt

Unsecured Line of Credit - Matures January 17, 2006

(in thousands)


Facility		Outstanding @ 9/30/04		Letters of Credit		Remaining Capacity @ 9/30/04
$	605,000	$	—	$	8,720	$	596,280

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.32	%	5.95	%	9.2 years
Secured Debt	70.68	%	6.50	%	4.6 years

Total Debt	100.00	%	6.34	%	5.9 years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	8.29	%	2.78	%	2.3 years
Fixed Rate Debt	91.71	%	6.66	%	6.3 years

Total Debt	100.00	%	6.34	%	5.9 years

Boston Properties, Inc.

Third Quarter 2004

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2004			2005			2006			2007			2008			Thereafter			Total
Citigroup Center	$	1,588		$	6,651		$	7,145		$	7,676		$	8,246		$	475,007		$	506,313
Times Square Tower		—			—			—			415,649	⁽¹⁾		—			—			415,649
Embarcadero Center One, Two and Federal Reserve		1,233			5,141			5,496			5,877			278,912			—			296,659
Prudential Center		1,204			4,919			5,256			5,619			259,705			—			276,703
280 Park Avenue		777			3,261			3,519			3,798			4,099			244,695			260,149
599 Lexington Avenue		—			225,000			—			—			—			—			225,000
Embarcadero Center Four		923			3,797			4,061			4,346			129,712			—			142,839
Embarcadero Center Three		602			2,506			2,671			132,726			—			—			138,505
Riverfront Plaza		743			3,104			3,314			3,540			95,327			—			106,028
Democracy Center		503			2,103			2,257			2,421			2,597			91,132			101,013
Embarcadero Center West Tower		397			1,649			90,415			—			—			—			92,461
100 East Pratt Street		503			2,100			2,246			2,401			78,110			—			85,360
One Freedom Square		457			1,896			2,005			2,122			2,245			73,641			82,366
601 and 651 Gateway Boulevard		—			—			81,615			—			—			—			81,615
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		318			1,313			1,387			1,466			1,549			55,486			61,519
202, 206 & 214 Carnegie Center		170			719			780			845			916			57,300			60,730
1330 Connecticut Avenue		521			2,136			2,238			2,346			2,452			50,298			59,991
New Dominion Technology Park, Building One		—			655			1,283			1,379			1,481			52,558			57,356
Reservoir Place		264			1,395			1,478			1,565			1,660			48,689			55,051
Capital Gallery		362			1,524			50,651			—			—			—			52,537
504, 506 & 508 Carnegie Center		272			1,136			1,221			1,314			40,915			—			44,858
10 & 20 Burlington Mall Rd & 91 Hartwell		118			741			795			855			919			34,670			38,098
10 Cambridge Center		157			659			715			777			844			30,592			33,744
Sumner Square		90			557			599			645			694			26,242			28,827
1301 New York Avenue		337			1,417			1,531			1,651			1,781			21,629			28,346
Eight Cambridge Center		144			601			649			702			757			23,729			26,582
510 Carnegie Center		154			635			683			735			23,519			—			25,726
University Place		180			752			806			864			925			19,414			22,941
Reston Corporate Center		160			654			698			745			20,523			—			22,780
Bedford Business Park		178			751			818			890			16,859			—			19,496
191 Spring Street		162			686			18,267			—			—			—			19,115
101 Carnegie Center		96			406			6,622			—			—			—			7,124
Montvale Center		45			189			6,762			—			—			—			6,996

		12,658			279,053			307,983			602,954			974,747			1,368,082			3,545,477

Unsecured Senior Notes		—			—			—			—			—			1,470,592			1,470,592
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	12,658		$	279,053		$	307,983		$	602,954		$	974,747		$	2,838,674		$	5,016,069

% of Total Debt		0.25	%		5.56	%		6.14	%		12.02	%		19.43	%		56.60	%		100.00	%
Balloon Payments	$	—		$	225,000		$	253,089		$	548,375		$	930,476		$	2,744,049		$	4,700,989
Scheduled Amortization	$	12,658		$	54,053		$	54,894		$	54,579		$	44,271		$	94,625		$	315,080

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

Boston Properties, Inc.

Third 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 September 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.


			September 30, 2004
Total Assets:
Capitalized Property Value			$	11,216,707
Cash and Cash Equivalents				213,873
Undeveloped Land, at Cost				221,901
Development in Process, at Cost (including Joint Venture %)				44,426

Total Assets			$	11,696,907

Unencumbered Assets			$	4,871,171

Secured Debt (Fixed and Variable) ⁽¹⁾			$	3,520,582
Joint Venture Debt				161,404
Contingent Liabilities & Letters of Credit				18,031
Unsecured Debt ⁽²⁾				1,475,000

Total Outstanding Debt			$	5,175,017

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)			$	79,389
Add: Interest Expense (per Consolidated Income Statement)				77,698
Add: Depreciation and Amortization (per Consolidated Income Statement)				66,523
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)				—

EBITDA				223,610
Add: Company share of unconsolidated joint venture EBITDA				4,577

Consolidated EBITDA			$	228,187

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)			$	77,698
Add: Company share of unconsolidated joint venture interest expense				2,481
Less: Amortization of financing costs				(1,456	)
Less: Interest expense funded by construction loan draws				—

Adjusted Interest Expense			$	78,723


Covenant Ratios and Related Data	Test		Actual
Total Outstanding Debt/Total Assets	Less than 60	%		44.2	%
Secured Debt/Total Assets	Less than 50	%		31.5	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50	x		2.90
Unencumbered Assets/ Unsecured Debt	Greater than 150	%		330.2	%

Unencumbered Consolidated EBITDA			$	94,029

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)				4.24

% of unencumbered Consolidated EBITDA to Consolidated EBITDA				41.2	%

# of unencumbered properties				68

⁽¹⁾	Excludes Fair Value Adjustment of $24,895.

⁽²⁾	Excludes Debt Discount of $4,408.

Boston Properties, Inc.

Third Quarter 2004

UNCONSOLIDATED JOINT VENTURES

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of September 30, 2004


	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue ⁽¹⁾			801 New Jersey Avenue ⁽¹⁾			Wisconsin Place ⁽¹⁾⁽²⁾			Fan Pier ⁽¹⁾			Combined
Total Equity⁽³⁾	$	9,342		$	31,667		$	24,040		$	15,143		$	3,202		$	3,982		$	900		$	88,276

Mortgage/Construction loans payable ⁽³⁾	$	47,204		$	68,555		$	19,250		$	21,387		$	—		$	5,008		$	—		$	161,404

BXP’s nominal ownership percentage		50.00	%		51.00	%		35.00	%		25.00	%		50.00	%		23.89	%		33.33	%

Results of Operations

(unaudited and in thousands)

for the three months ended September 30, 2004


	Market Square North		Metropolitan Square		265 Franklin Street		901 New York Avenue⁽¹⁾		801 New Jersey Avenue ⁽¹⁾		Wisconsin Place ⁽¹⁾⁽²⁾		Fan Pier ⁽¹⁾		Combined
REVENUE
Total revenue	$	5,126	$	6,351	$	3,313	$	84	$	8	$	—	$	—	$	14,882	⁽⁴⁾

EXPENSES
Operating		1,675		2,235		1,229		7		—		—		—		5,146

SUBTOTAL		3,451		4,116		2,084		77		8		—		—		9,736
Interest		1,829		2,793		393		17		—		—		—		5,032
Depreciation and amortization		1,418		1,190		907		12		—		—		—		3,527

NET INCOME	$	204	$	133	$	784	$	48	$	8	$	—	$	—	$	1,177

BXP’s share of net income	$	102	$	67	$	275	$	12	$	4	$	—	$	—	$	460
BXP’s share of depreciation & amortization		709		607		317		3		—		—		—		1,636

BXP’s share of Funds from Operations (FFO)	$	811	$	674	$	592	$	15	$	4	$	—	$	—	$	2,096

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

⁽²⁾

Represents the Company’s interest in the joint venture entity that owns the land and infrastructure as well as the retail component of the project. The entity that will develop the office component of the project, of which the Company has a 66.67% interest, has been consolidated within the accounts of the Company.

⁽³⁾	Represents the Company’s share.

⁽⁴⁾	The impact of the straight-line rent adjustment increased revenue by $585 for the three months ended September 30, 2004.

Boston Properties, Inc.

Third 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%)*	$	196		$	830		$	901		$	978		$	1,061		$	64,589		$	68,555
Market Square North (50%)*		219			927			1,001			1,081			1,167			42,809			47,204
265 Franklin Street (35%)*		—			—			—			19,250			—			—			19,250	⁽¹⁾
901 New York Avenue (25%)*		—			21,387			—			—			—			—			21,387
Wisconsin Place ⁽²⁾*		—			—			1,432			1,829			1,747			—			5,008	⁽²⁾

	$	415		$	23,144		$	3,334		$	23,138		$	3,975		$	107,398		$	161,404

Weighted Average Rate ⁽²⁾		7.95	%		3.81	%		7.95	%		3.47	%		7.95	%		8.02	%		6.77	%
% of Total Debt		0.26	%		14.34	%		2.07	%		14.34	%		2.46	%		66.53	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	25.98	%	3.24	%	2.0	years
Fixed Rate Debt	74.02	%	8.01	%	5.8	years

Total Debt	100.00	%	6.77	%	4.8	years

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

⁽¹⁾	The loan facility allows the venture to borrow an additional $15.0 million (of which the Company’s share is $5.3 million).

⁽²⁾	The Company has a 66.67% interest in the office component of the project. Represents debt on the entity owning the land and infrastructure in which the office component owns a 33.33% interest. The loan is non-interest bearing and the weighted-average rates exclude the impact of this loan.

Boston Properties, Inc.

Third 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 September 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	7,771,874	⁽⁴⁾	20.4	%	545,206		0.7	%	152,009		—	8,469,089		26.10	%	2.7	%	23.8	%
Greater Washington	6,721,223	⁽⁵⁾	16.3	%	857,223		1.3	%	—		—	7,578,446		23.36	%	—		17.6	%
Greater San Francisco	4,702,217		13.8	%	—				40,000		—	4,742,217		14.61	%	—		13.8	%
Midtown Manhattan	7,791,173		37.3	%	—				—		—	7,791,173		24.01	%	—		37.3	%
Princeton/East Brunswick, NJ	2,317,029		4.1	%	—				—		—	2,317,029		7.14	%	—		4.1	%
Baltimore, MD	637,605		1.6	%	—				—		—	637,605		1.96	%	—		1.6	%
Richmond, VA	912,972		1.8	%	—				—		—	912,972		2.81	%	—		1.8	%

	30,854,093		95.3	%	1,402,429		2.0	%	192,009		—	32,448,531		100.00	%	2.7	%	100.0	%

% of Total	95.09	%			4.32	%			0.59	%		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	17.4	%	6.4	%	23.8	%
Greater Washington	5.1	%	12.5	%	17.6	%
Greater San Francisco	12.8	%	1.0	%	13.8	%
Midtown Manhattan	37.3	%	—		37.3	%
Princeton/East Brunswick, NJ	—		4.1	%	4.1	%
Baltimore, MD	1.6	%	—		1.6	%
Richmond, VA	1.8	%	—		1.8	%

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 344,581 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

⁽⁵⁾	Includes 584,940 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.

Third Quarter 2004

In-Service Property Listing

as of September 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	1,181,016	97.5	%	$	36.61	Y	CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	853,686	100.0	%		49.33	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	509,316	84.1	%		35.29	Y	CBD
⁽¹⁾ The Shops at the Prudential Center	CBD Boston MA	1	532,424	94.9	%		55.44	Y	CBD
Shaws Supermarket at the Prudential Center	CBD Boston MA	1	57,235	100.0	%		44.79	N	CBD
265 Franklin Street (35% ownership)	CBD Boston MA	1	344,581	72.6	%		55.17	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	89.5	%		41.96	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	%		36.64	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	526,474	77.7	%		31.16	Y	S
⁽²⁾ 140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		27.55	Y	S
170 Tracer Lane	Route 128 Mass Turnpike MA	1	75,073	58.4	%		19.97	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	91.6	%		27.87	N	S
195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		47.99	N	S
200 West Street	Route 128 Mass Turnpike MA	1	248,048	100.0	%		34.98	N	S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	69.1	%		31.32	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,081	88.7	%		24.39	Y	S
Bedford Business Park	Route 128 Northwest MA	1	90,000	100.0	%		20.17	Y	S
32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		29.69	N	S
91 Hartwell Avenue	Route 128 Northwest MA	1	121,685	81.8	%		32.83	Y	S
92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		52.12	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	%		29.74	N	S
Lexington Office Park	Route 128 Northwest MA	2	166,689	84.4	%		23.46	N	S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		30.53	Y	S
181 Spring Street	Route 128 Northwest MA	1	53,595	41.2	%		36.85	N	S
201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		35.19	N	S
40 Shattuck Road	Route 128 Northwest MA	1	120,000	88.6	%		27.96	N	S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		20.92	N	S
Newport Office Park	Route 128 South MA	1	168,829	78.9	%		22.64	N	S

		40	7,771,874	91.0	%	$	36.92

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	%		15.99	Y	S
17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		13.00	N	S
164 Lexington Road	Route 128 Northwest MA	1	64,140	100.0	%		10.83	N	S

		5	545,206	100.0	%	$	15.95

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

Total Greater Boston:		46	8,469,089	89.9	%	$	35.41

Boston Properties, Inc.

Third Quarter 2004

In-Service Property Listing (continued)

as of September 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
⁽²⁾ Capital Gallery	Southwest Washington DC	1	293,875	100.0	%	$	38.49	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	100.0	%		40.80	Y	CBD
1301 New York Avenue	East End Washington DC	1	188,358	100.0	%		30.57	Y	CBD
Market Square North (50% ownership)	East End Washington DC	1	401,279	100.0	%		47.25	Y	CBD
⁽²⁾ 1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		39.76	N	CBD
⁽²⁾ 1330 Connecticut Avenue	CBD Washington DC	1	252,136	99.4	%		47.12	Y	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		36.03	Y	CBD
Democracy Center	Montgomery County MD	3	680,505	81.8	%		31.89	Y	S
Montvale Center	Montgomery County MD	1	120,777	92.6	%		24.46	Y	S
2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		34.77	N	S
Orbital Sciences 1,2&3	Loudoun County	3	337,228	100.0	%		24.44	N	S
⁽²⁾ One Freedom Square	Fairfax County VA	1	410,362	100.0	%		32.76	Y	S
⁽²⁾ Two Freedom Square	Fairfax County VA	1	421,502	99.4	%		35.66	N	S
One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		24.60	N	S
Two Reston Overlook	Fairfax County VA	1	133,207	92.1	%		28.97	N	S
One and Two Discovery Square	Fairfax County VA	2	367,018	99.5	%		35.44	N	S
New Dominion Technology Park	Fairfax County VA	2	492,601	100.0	%		34.46	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

		28	6,721,223	97.8	%	$	34.77

Office/Technical
Broad Run Business Park	Loudoun County	1	127,286	74.5	%		19.78	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		17.69	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	%		13.93	N	S
8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		15.15	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

		12	857,223	96.2	%	$	17.40

Total Greater Washington:		40	7,578,446	97.6	%	$	32.84

Boston Properties, Inc.

Third Quarter 2004

In-Service Property Listing (continued)

as of September 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	1,019,063	100.0	%	$	64.78	Y	CBD
280 Park Avenue	Park Avenue NY	1	1,176,391	100.0	%		58.73	Y	CBD
Citigroup Center	Park Avenue NY	1	1,578,021	93.1	%		61.09	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,681,641	100.0	%		72.28	N	CBD
⁽²⁾Times Square Tower	Times Square NY	1	1,234,278	80.6	%		55.94	Y	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.37	N	CBD

	Total Midtown Manhattan:	6	7,791,173	95.5	%	$	62.07

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	87.9	%		31.35	N	S
105 Carnegie Center	Princeton NJ	1	70,295	71.2	%		27.35	N	S
201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		26.03	N	S
202 Carnegie Center	Princeton NJ	1	128,705	80.9	%		29.97	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	%		31.12	N	S
211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		36.40	N	S
212 Carnegie Center	Princeton NJ	1	148,233	98.5	%		32.81	N	S
214 Carnegie Center	Princeton NJ	1	150,137	79.7	%		27.44	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		32.43	N	S
502 Carnegie Center	Princeton NJ	1	116,374	100.0	%		32.88	N	S
504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		30.18	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	%		28.61	Y	S
510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		28.35	Y	S
One Tower Center	East Brunswick NJ	1	412,222	84.1	%		35.31	N	S

	Total Princeton/East Brunswick, NJ:	16	2,317,029	92.4	%	$	31.08

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	834,219	88.0	%	$	42.80	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	777,880	86.1	%		47.23	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	772,615	84.2	%		41.04	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	933,800	94.8	%		61.61	Y	CBD
Federal Reserve	CBD San Francisco CA	1	149,592	0.8	%		—	Y	CBD
West Tower	CBD San Francisco CA	1	467,493	75.9	%		41.54	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	510,316	54.4	%		32.87	Y	S

		9	4,702,217	79.1	%	$	46.51

Industrial
⁽³⁾ 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	4,742,217	79.3	%	$	46.13

Boston Properties, Inc.

Third Quarter 2004

In-Service Property Listing (continued)

as of September 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	95.0	%	$	31.72	Y	CBD

Richmond, VA
Office
Riverfront Plaza	Richmond VA	1	912,972	91.0	%	$	18.58	Y	CBD

	Total In- Service Properties:	120	32,448,531	91.8	%	$	41.87

⁽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 September 30, 2004.

Boston Properties, Inc.

Third 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	1,689,671		5.21	%
2	Citibank, N.A.	1,256,173		3.87	%
3	Ernst and Young	1,064,939		3.28	%
4	Shearman & Sterling	585,808		1.81	%
5	Lockheed Martin Corporation	567,429		1.75	%
6	Gillette Company	485,932		1.50	%
7	Parametric Technology Corp.	470,987		1.45	%
8	Lehman Brothers	436,723		1.35	%
9	Wachovia	426,430		1.31	%
10	Washington Group International	365,245		1.13	%
11	Deutsche Bank Trust	346,617		1.07	%
12	Orbital Sciences Corporation	337,228		1.04	%
13	T. Rowe Price Associates, Inc.	330,313		1.02	%
14	Northrop Grumman	326,385		1.01	%
15	Kirkland & Ellis	324,014	⁽¹⁾	1.00	%
16	Ann Taylor	319,095		0.98	%
17	O’ Melveny & Myers	318,620		0.98	%
18	Hunton & Williams	305,837		0.94	%
19	Akin Gump Strauss Hauer & Feld	302,653		0.93	%
20	Digitas	279,182		0.86	%

	Total % of Portfolio Square Feet			32.49	%
	Total % of Portfolio Revenue			36.32	%

Major Signed Deals for Future Development


Tenant	Property	Sq. Ft.
Finnegan Henderson Farabow Garrett & Dunner, LLP	901 New York Ave.	254,125
Massachusetts Institute of Technology	Cambridge Seven	231,028

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

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.

Third 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	501,873	$	16,101,580	$	32.08	$	16,533,102	$	32.94	1.70	%
2005	1,715,550		62,842,936		36.63		62,818,768		36.62	5.81	%
2006	2,064,645		92,502,722		44.80		92,757,186		44.93	6.99	%
2007	2,420,317		93,833,188		38.77		95,037,878		39.27	8.19	%
2008	1,573,132		66,428,891		42.23		68,999,210		43.86	5.32	%
2009	2,958,324		110,874,421		37.48		118,714,949		40.13	10.01	%
2010	1,728,764		75,549,978		43.70		82,257,950		47.58	5.85	%
2011	2,409,398		105,452,821		43.77		116,940,041		48.53	8.15	%
2012	2,397,528		110,440,878		46.06		119,169,738		49.71	8.11	%
2013	788,920		25,010,216		31.70		28,754,877		36.45	2.67	%
Thereafter	8,699,036		406,863,047		46.77		485,169,175		55.77	29.44	%

Occupancy By Location*


	CBD				Suburban				Total
Location	30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03
Greater Boston	94.2	%	92.2	%	86.7	%	83.7	%	91.0	%	88.5	%
Greater Washington	99.9	%	99.5	%	96.5	%	96.5	%	97.8	%	97.4	%
Midtown Manhattan	95.5	%	98.9	%	—		—		95.5	%	98.9	%
Baltimore, MD	95.0	%	98.5	%	—		—		95.0	%	98.5	%
Princeton/East Brunswick, NJ	—		—		92.4	%	95.0	%	92.4	%	95.0	%
Richmond, VA	91.0	%	88.9	%	—		—		91.0	%	88.9	%
Greater San Francisco	83.7	%	91.6	%	55.1	%	55.0	%	79.1	%	85.7	%

Total Portfolio	93.3	%	95.3	%	89.6	%	89.1	%	92.0	%	93.0	%

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

Boston Properties, Inc.

Third 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	—	$	—	$	—	$	—	$	—	0.00	%
2005	61,274		991,723		16.19		991,723		16.19	4.37	%
2006	287,104		4,144,413		14.44		4,158,647		14.48	20.47	%
2007	321,900		5,740,045		17.83		5,999,392		18.64	22.95	%
2008	39,380		812,234		20.63		841,337		21.36	2.81	%
2009	28,702		725,781		25.29		736,075		25.65	2.05	%
2010	132,510		1,740,359		13.13		1,795,530		13.55	9.45	%
2011	137,321		2,456,378		17.89		2,556,378		18.62	9.79	%
2012	72,362		1,626,524		22.48		1,808,089		24.99	5.16	%
2013	—		—		—		—		—	—
Thereafter	285,972		4,880,505		17.07		5,721,954		20.01	20.39	%

Occupancy By Location


	CBD				Suburban				Total
Location	30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03
Greater Boston	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Greater Washington	—		—		96.2	%	80.0	%	96.2	%	80.0	%
Midtown Manhattan	n/a		n/a		n/a		n/a		n/a		n/a
Baltimore, MD	n/a		n/a		n/a		n/a		n/a		n/a
Princeton/East Brunswick, NJ	n/a		n/a		n/a		n/a		n/a		n/a
Richmond, VA	n/a		n/a		n/a		n/a		n/a		n/a
Greater San Francisco	—		—		n/a		74.9	%	n/a		74.9	%

Total Portfolio	100.0	%	100.0	%	97.6	%	85.5	%	97.7	%	86.1	%

Boston Properties, Inc.

Third 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-Sep-04

30-Sep-03

30-Sep-04

30-Sep-03

30-Sep-04

30-Sep-03

Greater Boston

—

0.0

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

26.2

20.8

26.2

Boston Properties, Inc.

Third 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	35,333	$	2,084,231	$	58.99	⁽¹⁾	$	2,113,283	$	59.81	⁽¹⁾	2.69	%
2005	55,743		4,413,666		79.18	⁽¹⁾		4,321,421		77.52	⁽¹⁾	4.25	%
2006	58,982		3,412,049		57.85			3,424,131		58.05		4.49	%
2007	48,342		2,479,706		51.30			2,574,368		53.25		3.68	%
2008	69,936		3,475,422		49.69			3,607,678		51.59		5.33	%
2009	60,492		2,583,118		42.70			2,736,145		45.23		4.61	%
2010	132,691		4,797,046		36.15			5,220,503		39.34		10.11	%
2011	43,217		2,835,244		65.60			3,229,373		74.72		3.29	%
2012	101,697		4,744,521		46.65			5,323,243		52.34		7.75	%
2013	58,105		4,854,947		83.55			5,325,518		91.65		4.43	%
Thereafter	648,155		34,283,731		52.89			41,482,484		64.00		49.38	%

⁽¹⁾	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $45.06 in 2004 and $54.96 in 2005.

Boston Properties, Inc.

Third Quarter 2004

GRAND TOTAL OF ALL

IN-SERVICE PROPERTIES

Lease Expirations


Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Current Annualized Revenues Under Expiring Leases p.s.f.		Annualized Revenues Under Expiring Leases with future step-ups		Annualized Revenues Under Expiring Leases with future step-ups - p.s.f.		Percentage of Total Square Feet
2004	577,206	$	18,614,391	$	32.25	$	19,074,964	$	33.05	1.8	%
2005	1,832,567		68,248,325		37.24		68,131,912		37.18	5.6	%
2006	2,410,731		100,059,184		41.51		100,339,964		41.62	7.4	%
2007	2,790,559		102,052,939		36.57		103,611,638		37.13	8.6	%
2008	1,682,448		70,716,548		42.03		73,448,224		43.66	5.2	%
2009	3,047,518		114,183,320		37.47		122,187,169		40.09	9.4	%
2010	1,993,965		82,087,383		41.17		89,273,983		44.77	6.1	%
2011	2,589,936		110,744,444		42.76		122,725,792		47.39	8.0	%
2012	2,571,587		116,811,924		45.42		126,301,070		49.11	7.9	%
2013	847,025		29,865,163		35.26		34,080,395		40.24	2.6	%
Thereafter	9,633,163		446,027,284		46.30		532,373,612		55.26	29.7	%

Occupancy By Location


	CBD				Suburban				Total
Location	30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03
Greater Boston	94.3	%	92.4	%	85.0	%	82.1	%	89.9	%	87.5	%
Greater Washington	99.9	%	99.5	%	96.5	%	93.4	%	97.6	%	95.1	%
Midtown Manhattan	95.5	%	98.9	%	—		—		95.5	%	98.9	%
Baltimore, MD	95.0	%	98.5	%	—		—		95.0	%	98.5	%
Princeton/East Brunswick, NJ	—		—		92.4	%	95.0	%	92.4	%	95.0	%
Richmond, VA	91.0	%	88.9	%	—		—		91.0	%	88.9	%
Greater San Francisco	83.7	%	91.6	%	57.4	%	60.7	%	79.3	%	85.5	%

Total Portfolio	93.3	%	95.3	%	89.4	%	87.5	%	91.8	%	92.2	%

Boston Properties, Inc.

Third 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	165,996	$	5,562,516	$	33.51	$	5,562,516	$	33.51	—	$	—	$	—		$	—	$	—
2005	718,886		27,410,736		38.13		27,377,995		38.08	—		—		—			—		—
2006	612,613		20,200,430		32.97		19,631,227		32.05	253,704		3,584,209		14.13			3,584,209		14.13
2007	498,273		19,975,302		40.09		19,932,503		40.00	144,140		1,977,740		13.72			2,208,950		15.33
2008	539,713		16,801,625		31.13		17,541,087		32.50	—		—		—			—		—
2009	1,123,827		39,326,452		34.99		42,485,339		37.80	—		—		—			—		—
2010	188,203		5,750,147		30.55		6,398,016		34.00	—		—		—			—		—
2011	811,393		30,629,428		37.75		34,294,815		42.27	80,000		1,657,900		20.72			1,757,900		21.97
2012	608,127		21,971,245		36.13		24,323,880		40.00	72,362		1,626,524		22.48			1,808,089		24.99
2013	240,470		10,810,320		44.95		11,785,953		49.01	—		—		—			—		—
Thereafter	814,664		30,319,488		37.22		34,166,638		41.94	—		—		—			—		—

	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	—	$	—	$	—	$	—	$	—	11,145	$	1,182,844	$	106.13	⁽¹⁾	$	1,211,896	$	108.74	⁽¹⁾
2005	—		—		—		—		—	21,431		2,739,339		127.82	⁽¹⁾		2,645,535		123.44	⁽¹⁾
2006	—		—		—		—		—	14,888		1,233,910		82.88			1,234,507		82.92
2007	—		—		—		—		—	3,202		415,996		129.92			418,372		130.66
2008	—		—		—		—		—	5,467		537,451		98.31			519,451		95.02
2009	—		—		—		—		—	6,253		558,049		89.24			569,253		91.04
2010	—		—		—		—		—	78,169		2,485,234		31.79			2,559,454		32.74
2011	—		—		—		—		—	13,527		811,454		59.99			869,594		64.29
2012	—		—		—		—		—	52,949		1,808,031		34.15			1,874,905		35.41
2013	—		—		—		—		—	13,892		1,961,201		141.17			2,059,726		148.27
Thereafter	—		—		—		—		—	452,689		19,726,296		43.58			22,377,255		49.43

⁽¹⁾	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $61.98 in 2004 and $64.77 in 2005.

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2004	165,996		5,562,516		33.51		5,562,516		33.51	—		—		—		—		—

Total 2004	165,996	$	5,562,516	$	33.51	$	5,562,516	$	33.51	—		—		—		—		—

Q1 2005	71,175	$	2,525,400	$	35.48	$	2,473,840	$	34.76	—	$	—	$	—	$	—	$	—
Q2 2005	197,758		6,079,593		30.74		6,079,593		30.74	—		—		—		—		—
Q3 2005	177,212		9,305,511		52.51		9,305,511		52.51	—		—		—		—		—
Q4 2005	272,741		9,500,233		34.83		9,519,052		34.90	—		—		—		—		—

Total 2005	718,886	$	27,410,736	$	38.13	$	27,377,995	$	38.08	—		—		—		—		—


	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	—		—		—		—		—	11,145		1,182,844		106.13		1,211,896		108.74

Total 2004	—		—	$	—	$	—	$	—	11,145	$	1,182,844	$	106.13	$	1,211,896	$	108.74

Q1 2005	—	$	—	$	—		—	$	—	9,433	$	880,340	$	93.33	$	854,840	$	90.62
Q2 2005	—		—		—		—		—	450		720,412		1,600.91		624,412		1,387.58
Q3 2005	—		—		—		—		—	2,030		504,792		248.67		492,792		242.75
Q4 2005	—		—		—		—		—	9,518		633,796		66.59		673,492		70.76

Total 2005	—	$	—	$	—	$	—	$	—	21,431	$	2,739,339	$	127.82	$	2,645,535	$	123.44

Boston Properties, Inc.

Third 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	13,071	$	443,838	$	33.96	$	501,243	$	38.35	—	$	—	$	—	$	—	$	—
2005	261,989		9,079,556		34.66		9,174,725		35.02	61,274		991,723		16.19		991,723		16.19
2006	228,641		7,165,464		31.34		7,356,036		32.17	33,400		560,204		16.77		574,438		17.20
2007	373,282		12,946,499		34.68		13,270,114		35.55	177,760		3,762,305		21.17		3,790,442		21.32
2008	213,594		6,998,766		32.77		7,627,514		35.71	39,380		812,234		20.63		841,337		21.36
2009	1,127,414		40,489,591		35.91		42,882,328		38.04	28,702		725,781		25.29		736,075		25.65
2010	818,767		30,153,707		36.83		33,260,826		40.62	132,510		1,740,359		13.13		1,795,530		13.55
2011	723,154		23,686,828		32.75		27,586,894		38.15	57,321		798,479		13.93		798,479		13.93
2012	683,769		24,441,787		35.75		29,074,987		42.52	—		—		—		—		—
2013	57,015		1,540,032		27.01		1,878,357		32.94	—		—		—		—		—
Thereafter	1,935,087		67,515,255		34.89		78,349,542		40.49	285,972		4,880,505		17.07		5,721,954		20.01

	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	—		—		—		—		—	5,088		203,727		40.04		204,183		40.13
2006	—		—		—		—		—	7,555		288,635		38.20		292,029		38.65
2007	—		—		—		—		—	18,845		551,056		29.24		571,235		30.31
2008	—		—		—		—		—	18,152		717,183		39.51		758,313		41.78
2009	—		—		—		—		—	23,554		680,154		28.88		759,597		32.25
2010	—		—		—		—		—	17,280		588,368		34.05		679,893		39.35
2011	—		—		—		—		—	11,221		474,558		42.29		531,961		47.41
2012	—		—		—		—		—	7,519		160,774		21.38		190,279		25.31
2013	—		—		—		—		—	13,377		591,287		44.20		723,461		54.08
Thereafter	—		—		—		—		—	24,214		1,045,537		43.18		1,338,181		55.26

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2004	13,071		443,838		33.96		501,243		38.35	—		—		—		—		—

Total 2004	13,071	$	443,838	$	33.96	$	501,243	$	38.35	—	$	—	$	—	$	—	$	—

Q1 2005	67,792	$	2,466,906	$	36.39	$	2,479,120	$	36.57	—	$	—	$	—	$	—	$	—
Q2 2005	57,941		1,649,382		28.47		1,649,382		28.47	—		—		—		—		—
Q3 2005	56,337		2,184,540		38.78		2,210,589		39.24	16,806		251,441		14.96		251,441		14.96
Q4 2005	79,919		2,778,728		34.77		2,835,635		35.48	44,468		740,282		16.65		740,282		16.65

Total 2005	261,989	$	9,079,556	$	34.66	$	9,174,725	$	35.02	61,274	$	991,723	$	16.19	$	991,723	$	16.19


	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	—	$	—	$	—	$	—	$	—	3,420	$	125,562	$	36.71	$	125,562	$	36.71
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	1,084		52,898		48.80		52,898		48.80
Q4 2005	—		—		—		—		—	584		25,267		43.27		25,723		44.05

Total 2005	—	$	—	$	—	$	—	$	—	5,088	$	203,727	$	40.04		204,183	$	40.13

Boston Properties, Inc.

Third 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	112,820	$	3,827,983	$	33.93	$	3,827,983	$	33.93	—	$	—	$	—	$	—	$	—
2005	398,518		15,715,042		39.43		15,598,282		39.14	—		—		—		—		—
2006	767,175		37,599,985		49.01		38,061,778		49.61	—		—		—		—		—
2007	442,134		21,014,309		47.53		21,323,853		48.23	—		—		—		—		—
2008	305,334		11,014,857		36.07		11,532,224		37.77	—		—		—		—		—
2009	220,980		10,431,062		47.20		10,719,687		48.51	—		—		—		—		—
2010	220,923		12,518,416		56.66		13,573,791		61.44	—		—		—		—		—
2011	209,360		18,645,583		89.06		18,932,800		90.43	—		—		—		—		—
2012	130,592		5,652,123		43.28		6,092,912		46.66	—		—		—		—		—
2013	113,194		4,032,393		35.62		4,524,038		39.97	—		—		—		—		—
Thereafter	708,599		26,416,937		37.28		27,599,242		38.95	—		—		—		—		—

	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	17,801	$	619,060	$	34.78	$	619,060	$	34.78
2005	—		—		—		—		—	23,517		1,161,856		49.40		1,161,856		49.40
2006	—		—		—		—		—	20,964		1,178,102		56.20		1,181,556		56.36
2007	—		—		—		—		—	16,259		1,084,254		66.69		1,156,361		71.12
2008	—		—		—		—		—	39,524		1,976,711		50.01		2,068,751		52.34
2009	—		—		—		—		—	30,685		1,344,915		43.83		1,407,295		45.86
2010	—		—		—		—		—	32,212		1,366,726		42.43		1,564,439		48.57
2011	—		—		—		—		—	3,474		177,195		51.01		227,915		65.61
2012	—		—		—		—		—	35,590		2,142,747		60.21		2,433,993		68.39
2013	—		—		—		—		—	8,408		586,795		69.79		636,805		75.74
Thereafter	—		—		—		—		—	25,421		870,232		34.23		1,248,087		49.10

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2004	112,820		3,827,983		33.93		3,827,983		33.93	—		—		—		—		—

Total 2004	112,820	$	3,827,983	$	33.93	$	3,827,983	$	33.93	—		—		—		—		—

Q1 2005	149,616	$	5,498,582	$	36.75	$	5,498,582	$	36.75	—	$	—	$	—	$	—	$	—
Q2 2005	134,526		4,797,211		35.66		4,668,984		34.71	—		—		—		—		—
Q3 2005	88,080		4,392,934		49.87		4,394,990		49.90	—		—		—		—		—
Q4 2005	26,296		1,026,314		39.03		1,035,725		39.39	—		—		—		—		—

Total 2005	398,518	$	15,715,042	$	39.43	$	15,598,282	$	39.14	—		—		—		—		—


	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	40,000		428,580		10.71		428,580		10.71	17,801		619,060		34.78		619,060		34.78

Total 2004	40,000	$	428,580	$	10.71	$	428,580	$	10.71	17,801	$	619,060	$	34.78	$	619,060	$	34.78

Q1 2005	—	$	—	$	—	$	—	$	—	7,363	$	307,703	$	41.79	$	307,703		41.79
Q2 2005	—		—		—		—		—	3,215		196,524		61.13		196,524		61.13
Q3 2005	—		—		—		—		—	11,794		564,395		47.85		564,395		47.85
Q4 2005	—		—		—		—		—	1,145		93,235		81.43		93,235		81.43

Total 2005	—		—		—		—		—	23,517	$	1,161,856	$	49.40	$	1,161,856	$	49.40

Boston Properties, Inc.

Third 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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2005	11,623		649,049		55.84		649,049		55.84	—		—		—		—		—
2006	335,467		23,607,695		70.37		23,693,028		70.63	—		—		—		—		—
2007	174,597		10,860,463		62.20		10,958,783		62.77	—		—		—		—		—
2008	505,844		31,382,982		62.04		32,046,868		63.35	—		—		—		—		—
2009	170,245		11,360,800		66.73		12,264,080		72.04	—		—		—		—		—
2010	307,904		20,958,885		68.07		22,283,095		72.37	—		—		—		—		—
2011	395,574		23,892,064		60.40		26,931,822		68.08	—		—		—		—		—
2012	935,649		57,104,021		61.03		58,136,651		62.14	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	4,445,394		265,130,816		59.64		320,873,241		72.18	—		—		—		—		—

	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	—		—		—		—		—	411		37,788		91.94		38,891		94.62
2006	—		—		—		—		—	15,575		711,403		45.68		716,039		45.97
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	3,232		163,188		50.49		170,430		52.73
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	5,030		356,718		70.92		416,718		82.85
2011	—		—		—		—		—	14,995		1,372,037		91.50		1,599,902		106.70
2012	—		—		—		—		—	5,639		632,969		112.25		824,067		146.14
2013	—		—		—		—		—	15,896		1,474,896		92.78		1,649,603		103.77
Thereafter	—		—		—		—		—	137,785		12,544,094		91.04		16,380,450		118.88

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—

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

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	—		—		—		—		—	—		—		—		—		—

Total 2005	11,623	$	649,049	$	55.84	$	649,049	$	55.84	—		—		—		—		—


	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	—		—		—		—		—	—		—		—		—	$	—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	411		37,788		91.94		38,891		94.62

Total 2005	—	$	—	$	—	$	—	$	—	411	$	37,788	$	91.94	$	38,891	$	94.62

Boston Properties, Inc.

Third 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	176,520	$	5,293,411	$	29.99	$	5,667,527	$	32.11	—	$	—	$	—	$	—	$	—
2005	250,647		7,889,549		31.48		7,889,549		31.48	—		—		—		—		—
2006	81,711		2,876,249		35.20		2,916,210		35.69	—		—		—		—		—
2007	513,240		15,708,673		30.61		16,196,805		31.56	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	251,399		7,803,171		31.04		8,672,724		34.50	—		—		—		—		—
2010	133,801		4,532,747		33.88		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,598,918		31.86		9,193,711		34.06	—		—		—		—		—
2012	5,500		182,912		33.26		192,537		35.01	—		—		—		—		—
2013	91,833		2,757,025		30.02		3,199,686		34.84	—		—		—		—		—
Thereafter	393,420		10,236,582		26.02		13,247,646		33.67	—		—		—		—		—

	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.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2004	176,520		5,293,411		29.99		5,667,527		32.11	—		—		—		—		—

Total 2004	176,520	$	5,293,411	$	29.99	$	5,667,527	$	32.11	—		—		—		—		—

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		4,122,178		30.49		4,122,178		30.49	—		—		—		—		—
Q4 2005	80,676		2,805,337		34.77		2,805,337		34.77	—		—		—		—		—

Total 2005	250,647	$	7,889,549	$	31.48	$	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.

Third 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	33,466	$	973,832	$	29.10	$	973,832	$	29.10	—	$	—	$	—	$	—	$	—
2005	73,887		2,099,004		28.41		2,129,168		28.82	—		—		—		—		—
2006	39,038		1,052,900		26.97		1,098,908		28.15	—		—		—		—		—
2007	418,791		13,327,941		31.82		13,355,819		31.89	—		—		—		—		—
2008	8,647		230,660		26.68		251,516		29.09	—		—		—		—		—
2009	64,459		1,463,346		22.70		1,690,791		26.23	—		—		—		—		—
2010	59,166		1,636,076		27.65		1,877,711		31.74	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	33,891		1,088,790		32.13		1,348,771		39.80	—		—		—		—		—
2013	286,408		5,870,446		20.50		7,366,842		25.72	—		—		—		—		—
Thereafter	401,872		7,243,970		18.03		10,932,867		27.20	—		—		—		—		—

	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	$	82,882	$	37.97	$	82,882	$	37.97
2005	—		—		—		—		—	5,296		270,956		51.16		270,956		51.16
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	10,036		428,400		42.69		428,400		42.69
2008	—		—		—		—		—	3,561		80,890		22.72		90,733		25.48
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	6,532		240,769		36.86		255,923		39.18
Thereafter	—		—		—		—		—	8,046		97,572		12.13		138,510		17.21

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2004	33,466		973,832		29.10		973,832		29.10	—		—		—		—		—

Total 2004	33,466	$	973,832	$	29.10	$	973,832	$	29.10	—	$	—	$	—	$	—	$	—

Q1 2005	1,731	$	37,891	$	21.89	$	37,891	$	21.89	—	$	—	$	—	$	—	$	—
Q2 2005	23,213		564,579		24.32		570,783		24.59	—		—		—		—		—
Q3 2005	37,894		1,200,798		31.69		1,217,694		32.13	—		—		—		—		—
Q4 2005	11,049		295,736		26.77		302,800		27.41	—		—		—		—		—

Total 2005	73,887	$	2,099,004	$	28.41	$	2,129,168	$	28.82	—	$	—	$	—	$	—	$	—


	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		82,882		37.97		82,882		37.97

Total 2004	—	$	—	$	—	$	—	$	—	2,183	$	82,882	$	37.97	$	82,882	$	37.97

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

Total 2005	—	$	—	$	—	$	—	$	—	5,296	$	270,956	$	51.16	$	270,956	$	51.16

Boston Properties, Inc.

Third 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	80,873	⁽¹⁾	$	4,052,344	$	50.11	⁽¹⁾	$	4,081,396	$	50.47	⁽¹⁾	5,099	$	188,526	$	36.97	$	188,526	$	36.97
2005	416,261	⁽²⁾		21,215,334		50.97	⁽²⁾		21,121,530		50.74	⁽²⁾	79,935		3,189,367		39.90		3,211,755		40.18
2006	131,904			6,192,945		46.95			6,175,962		46.82		42,045		1,686,190		40.10		1,724,941		41.03
2007	176,860			9,459,247		53.48			9,222,586		52.15		297,426		10,475,232		35.22		10,619,385		35.70
2008	178,009			6,633,878		37.27			6,747,253		37.90		40,973		1,629,053		39.76		1,751,224		42.74
2009	759,151			27,231,209		35.87			29,877,066		39.36		833,833		31,711,625		38.03		33,956,880		40.72
2010	157,397			5,702,433		36.23			6,189,813		39.33		408,599		16,807,106		41.13		18,981,592		46.46
2011	449,877			23,021,618		51.17			25,981,161		57.75		199,363		8,280,265		41.53		9,518,955		47.75
2012	309,025			13,648,608		44.17			14,558,002		47.11		80,203		3,142,353		39.18		3,158,200		39.38
2013	254,362			12,771,521		50.21			13,845,678		54.43		1,702		90,126		52.95		110,555		64.96
Thereafter	1,038,655			42,092,335		40.53			47,096,097		45.34		497,743		22,765,247		45.74		28,114,433		56.48

	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	1,300		$	151,445	$	116.50		$	151,445	$	116.50		126,102	$	4,313,576	$	34.21	$	4,313,576	$	34.21
2005	12,034			686,837		57.07			687,940		57.17		310,160		13,088,402		42.20		13,092,048		42.21
2006	351,042			24,319,097		69.28			24,409,067		69.53		745,539		36,287,543		48.67		36,600,651		49.09
2007	174,597			10,860,463		62.20			10,958,783		62.77		447,491		21,814,792		48.75		22,184,586		49.58
2008	509,076			31,546,170		61.97			32,217,298		63.29		264,807		11,080,062		41.84		11,609,567		43.84
2009	170,245			11,360,800		66.73			12,264,080		72.04		234,441		11,303,361		48.21		11,611,031		49.53
2010	312,934			21,315,603		68.12			22,699,813		72.54		245,411		13,710,143		55.87		14,906,510		60.74
2011	410,569			25,264,101		61.53			28,531,724		69.49		212,834		18,822,778		88.44		19,160,715		90.03
2012	941,288			57,736,990		61.34			58,960,718		62.64		166,182		7,794,870		46.91		8,526,904		51.31
2013	15,896			1,474,896		92.78			1,649,603		103.77		121,602		4,619,187		37.99		5,160,844		42.44
Thereafter	4,583,179			277,674,910		60.59			337,253,691		73.59		477,718		18,794,296		39.34		19,093,450		39.97

	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	—		$	—	$	—		$	—	$	—		35,649	$	1,056,714	$	29.64	$	1,056,714	$	29.64
2005	—			—		—			—		—		79,183		2,369,960		29.93		2,400,125		30.31
2006	—			—		—			—		—		39,038		1,052,900		26.97		1,098,908		28.15
2007	—			—		—			—		—		428,827		13,756,342		32.08		13,784,219		32.14
2008	—			—		—			—		—		12,208		311,550		25.52		342,249		28.03
2009	—			—		—			—		—		64,459		1,463,346		22.70		1,690,791		26.23
2010	—			—		—			—		—		59,166		1,636,076		27.65		1,877,711		31.74
2011	—			—		—			—		—		—		—		—		—		—
2012	—			—		—			—		—		33,891		1,088,790		32.13		1,348,771		39.80
2013	—			—		—			—		—		292,940		6,111,215		20.86		7,622,765		26.02
Thereafter	—			—		—			—		—		409,918		7,341,542		17.91		11,071,377		27.01

⁽¹⁾	Includes 11,145 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases with retail is $41.15 and rent on expiring leases with future step-up including retail is $41.15 per square foot in 2004.

⁽¹⁾	Includes 20,231 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases with retail is $46.83 and rent on expiring leases with future step-up including retail is $46.83 per square foot in 2005.

Boston Properties, Inc.

Third 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	96,268	$	2,693,015	$	27.97	$	2,693,015	$	27.97	7,972	$	255,312	$	32.03	$	312,717	$	39.23
2005	324,056		8,934,741		27.57		8,902,000		27.47	248,416		7,085,640		28.52		7,158,876		28.82
2006	749,301		18,825,604		25.12		18,273,980		24.39	227,551		6,328,113		27.81		6,497,563		28.55
2007	468,755		12,909,792		27.54		13,337,239		28.45	272,461		6,784,628		24.90		7,012,406		25.74
2008	367,171		10,705,198		29.16		11,313,285		30.81	230,153		6,899,130		29.98		7,475,940		32.48
2009	370,929		12,653,292		34.11		13,177,526		35.53	345,837		10,183,901		29.45		10,421,120		30.13
2010	108,975		2,532,948		23.24		2,767,656		25.40	559,958		15,675,328		27.99		16,754,656		29.92
2011	455,043		10,077,163		22.15		10,941,147		24.04	592,333		16,679,600		28.16		19,398,378		32.75
2012	424,413		11,757,192		27.70		13,448,871		31.69	611,085		21,460,209		35.12		26,107,065		42.72
2013	—		—		—		—		—	68,690		2,041,193		29.72		2,491,263		36.27
Thereafter	228,698		7,953,449		34.78		9,447,796		41.31	1,747,530		50,676,050		29.00		57,295,244		32.79

	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	—	$	—	$	—	$	—	$	—	44,519	$	562,048	$	12.62	$	562,048	$	12.62
2005	—		—		—		—		—	111,875		3,788,496		33.86		3,668,090		32.79
2006	—		—		—		—		—	42,600		2,490,543		58.46		2,642,683		62.03
2007	—		—		—		—		—	10,902		283,770		26.03		295,629		27.12
2008	—		—		—		—		—	80,051		1,911,506		23.88		1,991,409		24.88
2009	—		—		—		—		—	17,224		472,616		27.44		515,951		29.96
2010	—		—		—		—		—	7,724		175,000		22.66		231,720		30.00
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	256,302		8,492,873		33.14		9,753,879		38.06

	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	179,424	$	5,341,411	$	29.77	$	5,715,527	$	31.85	—	$	—	$	—	$	—	$	—
2005	250,647		7,889,549		31.48		7,889,549		31.48	—		—		—		—		—
2006	81,711		2,876,249		35.20		2,916,210		35.69	—		—		—		—		—
2007	513,240		15,708,673		30.61		16,196,805		31.56	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	251,399		7,803,171		31.04		8,672,724		34.50	—		—		—		—		—
2010	133,801		4,532,747		33.88		4,864,511		36.36	—		—		—		—		—
2011	269,917		8,598,918		31.86		9,193,711		34.06	—		—		—		—		—
2012	5,500		182,912		33.26		192,537		35.01	—		—		—		—		—
2013	91,833		2,757,025		30.02		3,199,686		34.84	—		—		—		—		—
Thereafter	393,420		10,236,582		26.02		13,247,646		33.67	—		—		—		—		—

Boston Properties, Inc.

Third Quarter 2004

HOTEL PERFORMANCE

Long Wharf Marriott - Boston


	Third Quarter 2004			Third Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		91.2	%		90.7	%	0.6	%		85.6	%		81.4	%	5.2	%
Average Daily Rate	$	227.06		$	212.53		6.8	%	$	203.09		$	195.05		4.1	%
Revenue per available room	$	207.16		$	192.69		7.5	%	$	173.93		$	158.84		9.5	%

Cambridge Center Marriott
	Third Quarter 2004			Third Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		86.4	%		81.1	%	6.5	%		79.1	%		74.3	%	6.5	%
Average Daily Rate	$	162.67		$	140.82		15.5	%	$	157.00		$	151.62		3.5	%
Revenue per available room	$	140.54		$	114.16		23.1	%	$	124.22		$	112.64		10.3	%

Residence Inn by Marriott
	Third Quarter 2004			Third Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		93.1	%		91.3	%	2.0	%		83.9	%		80.3	%	4.5	%
Average Daily Rate	$	148.15		$	129.20		14.7	%	$	133.88		$	125.20		6.9	%
Revenue per available room	$	137.93		$	117.96		16.9	%	$	112.29		$	100.59		11.6	%

Total Hotel Performance
	Third Quarter 2004			Third Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		89.6	%		86.9	%	3.1	%		82.6	%		78.3	%	5.5	%
Average Daily Rate	$	184.18		$	165.73		11.1	%	$	169.73		$	162.64		4.4	%
Revenue per available room	$	165.40		$	144.91		14.1	%	$	140.68		$	127.73		10.1	%

Boston Properties, Inc.

Third Quarter 2004

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾ - By Location


	CBD				Suburban				Total
Location	30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03
Greater Boston	94.3	%	92.3	%	85.0	%	82.4	%	89.9	%	87.6	%
Greater Washington	100.0	%	99.3	%	95.6	%	93.1	%	96.8	%	94.9	%
Midtown Manhattan	98.3	%	98.9	%	—		—		98.3	%	98.9	%
Baltimore, MD	95.0	%	98.5	%	—		—		95.0	%	98.5	%
Princeton/East Brunswick, NJ	—		—		92.4	%	95.0	%	92.4	%	95.0	%
Richmond, VA	91.0	%	88.9	%	—		—		91.0	%	88.9	%
Greater San Francisco	83.7	%	91.6	%	57.4	%	57.2	%	79.3	%	85.8	%

Total Portfolio	93.8	%	95.2	%	88.3	%	87.0	%	91.7	%	92.1	%


**Same Property Occupancy⁽¹⁾ - By Type of Property**
	CBD				Suburban				Total
	30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03		30-Sep-04		30-Sep-03
Total Office Portfolio	93.8	%	95.2	%	88.4	%	88.1	%	91.9	%	92.7	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.6	%	90.0	%	97.7	%	90.5	%
Total Industrial Portfolio	—		—		20.8	%	19.1	%	20.8	%	19.1	%

Total Portfolio	93.8	%	95.2	%	88.3	%	87.0	%	91.7	%	92.1	%

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

Boston Properties, Inc.

Third Quarter 2004

SAME PROPERTY PERFORMANCE

Office, Office/Technical, Industrial and Hotel Properties


	Office		Office/Technical		Industrial		Hotel ⁽¹⁾		Total
Number of Properties	94		17		2		3		116
Square feet	27,645,578		1,402,429		192,009		937,874		30,117,890
Percent of in-service properties	90.9	%	100.0	%	100.0	%	100.0	%	91.6	%
Occupancy @ 9/30/03	92.8	%	90.5	%	19.1	%	—		92.2	%
Occupancy @ 9/30/04	92.0	%	97.7	%	20.8	%	—		91.8	%
Percent change from 3rd quarter 2004 over 3rd quarter 2003 ⁽²⁾:
Rental revenue	0.0	%	6.5	%	See Note 4		12.7	%	0.8	%
Operating expenses and real estate taxes	-1.1	%	1.4	%	See Note 4		6.9	%	-0.1	%
Net Operating Income ⁽³⁾	0.6	%	7.8	%	See Note 4		28.6	%	1.4	%
Net Operating Income ⁽³⁾ - without hotels									0.7	%
Rental revenue - cash basis	0.9	%	8.5	%	See Note 4		12.7	%	1.7	%
Net Operating Income ⁽³⁾ - cash basis ⁽⁴⁾	2.0	%	10.5	%	See Note 4		28.6	%	2.8	%
Net Operating Income ⁽³⁾ - cash basis⁽⁴⁾ - without hotels									2.2	%

Same Property Lease Analysis - quarter ended September 30, 2004


	Office			Office/Technical		Industrial		Total
Vacant space available @ 7/1/04 (sf)		2,154,690			—		152,009		2,306,699
Square footage of leases expiring or terminated 7/1/04-9/30/04		1,178,992			—		—		1,178,992

Total space for lease (sf)		3,333,682			—		152,009		3,485,691

New tenants (sf)		541,176			—		—		541,176
Renewals (sf)		529,651			—		—		529,651

Total space leased (sf)		1,070,827			—		—		1,070,827

Space available @ 9/30/04 (sf)		2,262,855			—		152,009		2,414,864

Net (increase)/decrease in available space (sf)		(108,165	)		—		—		(108,165	)
Average lease term (months)		85			—		—		85
2nd generation TI/Comm PSF	$	18.41		$	—	$	—	$	18.41
Increase (decrease) in 2nd generation gross rents ⁽⁵⁾		-15.69	%		—		—		-15.69	%
Increase (decrease) in 2nd generation net rents ⁽⁵⁾		-23.74	%		—		—		-23.74	%

⁽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 921,144 square feet.

Boston Properties, Inc.

Third Quarter 2004

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	9/30/2004			9/30/2003
	*(in thousands)*
Net income available to common shareholders	$	68,542		$	56,970
Gains on sales of real estate from discontinued operations, net of minority interest		(4,150	)		—
Income from discontinued operations, net of minority interest		(89	)		(929	)
Gains on sales of real estate and other assets, net of minority interest		—			(1,341	)
Minority interest in Operating Partnership		16,993			17,913
Income from unconsolidated joint ventures		(460	)		(1,343	)
Minority interest in property partnerships		(1,447	)		(648	)

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		79,389			70,622
Add:
Net derivative losses/(gains)		—			(885	)
Depreciation and amortization		66,523			52,991
Interest		77,698			75,343
General and administrative		13,002			11,183
Subtract:
Interest and other		(908	)		(1,089	)
Development and management services		(5,835	)		(3,616	)

Consolidated Net Operating Income	$	229,869		$	204,549

Same Property Net Operating Income	$	197,819		$	195,148
Net operating income from non Same Properties ⁽¹⁾		30,250			7,672
Termination income		1,800			1,729

Consolidated Net Operating Income	$	229,869		$	204,549

Same Property Net Operating Income	$	197,819		$	195,148
Less Straight Line Rent		8,464			11,030

Same Property Net Operating Income- cash basis	$	189,355		$	184,118

⁽¹⁾	See pages 19-22 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Third Quarter 2004

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical									Industrial
	For the three months ended				$			%		For the three months ended				$			%		For the three months ended						$			%
	30-Sep-04		30-Sep-03		Change			Change		30-Sep-04		30-Sep-03		Change			Change		30-Sep-04			30-Sep-03			Change			Change
Rental Revenue	$	290,465	$	290,428						$	5,762	$	5,410						$	2		$	66
Less Termination Income		1,763		1,729							—		—							—			—

Rental revenue-subtotal		288,702		288,699		3		0.0	%		5,762		5,410		352		6.5	%		2			66			(64	)	-97.0	%
Operating expenses and real estate taxes		101,464		102,541		(1,077	)	-1.1	%		1,144		1,128		16		1.4	%		98			71			27		38.0	%

Net Operating Income ⁽¹⁾	$	187,238	$	186,158	$	1,080		0.6	%	$	4,618	$	4,282	$	336		7.8	%	$	(96	)	$	(5	)	$	(91	)	-1820.0	%

Rental revenue-subtotal	$	288,702	$	288,699						$	5,762	$	5,410						$	2		$	66
Less Straight Line Rent		8,355		10,836		(2,481	)				108		199		(91	)				—			(8	)		8

Rental revenue-cash basis		280,347		277,863		2,484		0.9	%		5,654		5,211		443		8.5	%		2			74			(72	)	-97.3	%
Less:
Operating expenses and real estate taxes		101,464		102,541		(1,077	)	-1.1	%		1,144		1,128		16		1.4	%		98			71			27		38.0	%

Net Operating Income ⁽²⁾-cash basis	$	178,883	$	175,322	$	3,561		2.0	%	$	4,510	$	4,083	$	427		10.5	%	$	(96	)	$	3		$	(99	)	-3300.0	%


	Hotel									Total
	For the three months ended				$			%		For the three months ended				$			%
	30-Sep-04		30-Sep-03		Change			Change		30-Sep-04		30-Sep-03		Change			Change
Rental Revenue	$	19,768	$	17,542						$	315,997	$	313,446
Less Termination Income		—		—							1,763		1,729

Rental revenue-subtotal		19,768		17,542	$	2,226		12.7	%		314,234		311,717		2,517		0.8	%
Operating expenses and real estate taxes		13,709		12,829		880		6.9	%		116,415		116,569		(154	)	-0.1	%

Net Operating Income ⁽¹⁾	$	6,059	$	4,713	$	1,346		28.6	%	$	197,819	$	195,148	$	2,671		1.4	%

Rental revenue-subtotal	$	19,768	$	17,542						$	314,234	$	311,717
Less Straight Line Rent		1		3		(2	)				8,464		11,030		(2,566	)

Rental revenue-cash basis		19,767		17,539		2,228		12.7	%		305,770		300,687		5,083		1.7	%
Less:
Operating expenses and real estate taxes		13,709		12,829		880		6.9	%		116,415		116,569		(154	)	-0.1	%

Net Operating Income ⁽²⁾-cash basis	$	6,058	$	4,710	$	1,348		28.6	%	$	189,355	$	184,118	$	5,237		2.8	%

⁽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.

Third Quarter 2004

LEASING ACTIVITY

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


	Office			Office/ Technical			Industrial		Total
Vacant space available @ 7/1/2004 (sf)		2,181,547			16,049			152,009		2,349,605
Property dispositions/assets taken out of service (sf)		(118,943	)		(16,049	)		—		(134,992	)
Property acquisitions/assets placed in-service (sf)		1,491,678			—			—		1,491,678
Leases expiring or terminated 7/1/04-9/30/04 (sf)		1,301,435			—			—		1,301,435

Total space for lease (sf)		4,855,717			—			152,009		5,007,726

New tenants (sf)		1,793,564			—			—		1,793,564
Renewals (sf)		555,987			—			—		555,987

Total space leased (sf)		2,349,551			—			—		2,349,551	⁽¹⁾

Space available @ 9/30/04 (sf)		2,506,166			—			152,009		2,658,175

Net (increase)/decrease in available space (sf)		(324,619	)		16,049			—		(308,570	)
Average lease term (months)		84			—			—		84
2nd generation TI/Comm PSF	$	18.04		$	—		$	—	$	18.04
Increase (decrease) in 2nd generation gross rents ⁽²⁾		-15.03	%		—			—		-15.03	%
Increase (decrease) in 2nd generation net rents⁽³⁾		-22.43	%		—			—		-22.43	%

⁽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 947,480.

⁽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 947,480.


	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	11,634	394,085	-30.61	%	-47.42	%	405,719
Washington	257,400	455,385	-7.91	%	-11.04	%	712,785
New York	994,988	24,086	9.86	%	14.40	%	1,019,074
San Francisco	—	61,080	-22.72	%	-29.61	%	61,080
Princeton	—	150,893	0.56	%	3.23	%	150,893

	1,264,022	1,085,529	-15.03	%	-22.43	%	2,349,551

Boston Properties, Inc.

Third Quarter 2004

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q3 2004		Q2 2004		Q1 2004		2003		2002
Recurring capital expenditures	$	6,831	$	4,138	$	3,211	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		482		981		324		4,464		31,908
Hotel improvements, equipment upgrades and replacements		238		228		273		2,345		3,218

	$	7,551	$	5,347	$	3,808	$	25,323	$	51,800

2nd Generation Tenant Improvements and Leasing Commissions

(in thousands, except per share amounts)


	Q3 2004		Q2 2004		Q1 2004		2003		2002
Office
Square feet		1,085,529		679,980		494,330		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	18.04	$	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	$	18.04	$	23.59	$	26.23	$	13.93	$	16.01

Boston Properties, Inc.

Third Quarter 2004

ACQUISITIONS/DISPOSITIONS

as of September 30, 2004

ACQUISITIONS

For the period from January 1, 2004 through September 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 September 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
Sugarland Business Park, Building One	Aug-04	52,423		7,800,000		794,000
204 Second Avenue	Sep-04	40,974		6,000,000		4,215,000

Total Dispositions		727,478	$	112,541,000	$	50,337,000

⁽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.

Third Quarter 2004

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of September 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 September 30, 2004		Estimated Future Equity Requirement		Percentage Leased ⁽³⁾
Cambridge Center Seven	Q1 2006	Q1 2006	Cambridge, MA	1	231,028		11,426,592		145,933,861		—		—		134,507,269	100	%
901 New York Avenue (25% ownership)	Q3 2004	Q1 2005	Washington, D.C.	1	539,038		34,402,814		44,777,000		30,000,000		21,386,731		1,760,917	88	%
Capital Gallery expansion	Q1 2006	Q3 2007	Washington, D.C.	—	318,557		1,749,740		69,100,000		—		—		67,350,260	5	%
Parcel E (12280 Sunrise Valley)	Q2-2006	Q2 2006	Reston, VA	1	182,000		5,135,678		45,804,416		—		—		40,668,738	100	%

Total Development Properties				3	1,270,623	$	52,714,824	$	305,615,277	$	30,000,000	$	21,386,731	$	244,287,184	71	%

DEVELOPMENTS PLACED-IN-SERVICE DURING 2004


	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment⁽²⁾		Debt		Drawn at September 30, 2004		Estimated Future Equity Requirement		Percentage Leased
New Dominion Tech, Building Two	Q3 2004	Q3 2004	Herndon, VA	1	257,400	$	59,642,795	$	67,589,000	$	63,000,000	$	63,000,000	$	—	100	%
Times Square Tower	Q2 2004	Q2 2005	New York, NY	1	1,234,272		574,638,707		653,500,000		475,000,000		415,648,543		—	83	%

Total Developments Placed in Service				2	1,491,672		634,281,502		721,089,000		538,000,000		478,648,543		—	—

⁽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 October 19, 2004.

Boston Properties, Inc.

Third Quarter 2004

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of September 30, 2004


Location	Acreage	Developable Square Feet
Rockville, MD	79.7	1,142,000
Dulles, VA	76.6	934,000
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Reston, VA	39.6	1,417,000
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
Chevy Chase, MD	1.0	300,000

	366.8	7,492,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of September 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⁾	—	200,000

	176.0	3,832,000

⁽¹⁾	$30.50 per square foot and $125K per annum option payment.

⁽²⁾	Approximately 1.1 million square feet is subject to ground lease.

⁽³⁾	Subject to ground lease.

⁽⁴⁾	The Company has the option to purchase additional residential rights.

Boston Properties, Inc.

Third 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 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. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in 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 our comparative operating and financial performance 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 and defined supplemental adjustments, including gains or losses on derivative instruments, consisting of changes in fair value and periodic cash settlements, that do not qualify for hedge accounting pursuant to the provisions of SFAS No. 133 (“non-qualifying derivative contracts”). As the impact of the non-qualifying derivative contracts did not extend beyond the quarter ended September 30, 2003, FFO as adjusted for periods ended on and after December 31, 2003 is the same as FFO computed in accordance with the NAREIT definition.

The adjustments for non-qualifying derivative contracts resulted from interest rate contracts we entered into prior to the effective date of SFAS No. 133 to limit our exposure to fluctuations in interest rates with respect to variable rate debt associated with real estate projects under development. Upon transition to SFAS No. 133 on January 1, 2001, the impacts of these contracts were recorded in current earnings, while prior to that time they were capitalized. Although these adjustments are attributable to a single hedging program, the underlying contracts extended over multiple reporting periods and therefore resulted in adjustments from the first quarter of 2001 through the third quarter of 2003. Management presents FFO before the impact of non-qualifying derivative contracts because economically this interest rate hedging program was consistent with our risk management objective of limiting our exposure to interest rate volatility and the change in accounting under GAAP did not correspond to a substantive difference. Management does not currently anticipate structuring future hedging programs in a manner that would give rise to this kind of adjustment.

Management uses FFO principally to evaluate the operating performance of our assets from period to period, and therefore it is important that transactions which impact operations over multiple periods be reflected in FFO in accordance with their substance, even if GAAP requires that the income or loss attributable to the transaction be recorded in a particular period. The resulting adjustments to FFO computed in accordance with the NAREIT definition are particularly meaningful when the events in question are substantively equivalent to other similar transactions, but the reporting of those similar transactions under GAAP more closely matches their economic substance.

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 because we believe that, by excluding the effects of the non-qualifying derivative contracts, management and investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO. Additionally, we believe the nature of these adjustments is non-recurring because there were not similar events during the two preceding years, and the events were not reasonably likely to recur and did not, in fact, recur within the succeeding two years.

Neither FFO nor FFO as adjusted should be considered as alternatives to net income (determined in accordance with GAAP) as an indication of our performance. Neither FFO nor FFO as adjusted represents 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 as to 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 DATED OCTOBER 26, 2004

EXHIBIT 99.2

[GRAPHIC APPEARS HERE]

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

THIRD QUARTER 2004 RESULTS


Reports diluted FFO per share of $1.07		Reports diluted EPS of $0.62

BOSTON, MA, October 26, 2004– Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the third quarter ended September 30, 2004.

Funds from Operations (FFO) for the quarter ended September 30, 2004 were $119.9 million, or $1.11 per share basic and $1.07 per share diluted. This compares to FFO for the quarter ended September 30, 2003 of $99.1 million, or $1.02 per share basic and $0.98 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 108,339,350 and 116,149,006, respectively, for the quarter ended September 30, 2004 and 97,360,498 and 107,231,333, respectively, for the same quarter last year.

Net income available to common shareholders was $68.5 million for the three months ended September 30, 2004, compared to $57.0 million for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended September 30, 2004 was $0.63 basic and $0.62 on a diluted basis. This compares to EPS for the third quarter of 2003 of $0.59 basic and $0.57 on a diluted basis. EPS includes $0.04 and $0.01 on a diluted basis, related to gains on sales of properties for the quarters ended September 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 September 30, 2004. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of September 30, 2004, the Company’s portfolio consisted of 126 properties comprising approximately 44.1 million square feet, including three properties under construction and one expansion project, totaling 1.3 million square feet. During the third quarter, Times Square Tower, a 1.2 million square foot

Class A office tower was added to the in-service portfolio. The overall percentage of leased space for the 120 properties in service as of September 30, 2004 was 91.8%. Excluding Times Square Tower, the in service portfolio was 92.3% leased.

Significant events of the third quarter include:

In July 2004, the Company commenced construction of Seven Cambridge Center, a fully-leased, build-to-suit project with approximately 231,000 square feet of office, research laboratory and retail space plus parking for approximately 800 cars, located in Cambridge, Massachusetts. The Company has signed a lease for 100% of the space with the Massachusetts Institute of Technology for occupancy by its affiliate, the Eli and Edythe L. Broad Institute. The Company expects the development to be completed in the first quarter of 2006.

On July 30, 2004, the Company entered into a lease with the Lockheed Martin Corporation (LMC) totaling approximately 182,000 square feet related to the development of a build-to-suit office building in Reston, Virginia. LMC currently leases more than 500,000 square feet from the Company in two buildings within the existing office complex. The Company expects the development to be completed in the second quarter of 2006.

On August 1, 2004, the Company completed the sale of Sugarland Business Park- Building One for approximately $7.8 million. This office/technical property which is approximately 52,000 square feet is located in Herndon, Virginia.

On August 2, 2004, the Company entered into a joint venture with unrelated third parties to pursue the development of a Class A office building totaling approximately 305,000 square feet that will be part of a mixed-use development of office, retail and residential properties known as Wisconsin Place located in Chevy Chase, Maryland. The new development will sit above a shared four-story parking garage with over 1,700 parking spaces. The Company will have a 66.67% interest in the office building, a shared interest in the infrastructure, a nominal interest in the retail component and no interest in the residential component.

On August 3, 2004, the Company entered into a lease with Ann Taylor Stores Corporation, totaling approximately 300,000 square feet at Times Square Tower in New York City. Times Square Tower, which as referenced above was placed-in-service this quarter, is now approximately 83% leased.

On September 22, 2004, the Company entered into an agreement, through a joint venture with New England Development and The Related Companies, to acquire a 21-acre site supporting approximately three million square feet of development located on Boston’s waterfront, known as Fan Pier, for approximately $125.0 million. The mixed-use master plan for Fan Pier includes commercial, residential and civic uses. The Company has a 33.33% interest in the joint venture that will acquire the site. The acquisition is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the acquisition will be consummated on the terms currently contemplated or at all, management has no reason to believe that the closing will not occur as expected by the end of 2004.

On September 24, 2004, the Company refinanced the construction loan on its New Dominion Tech. Park, Building Two property located in Herndon, Virginia. The original construction loan with an outstanding balance of $56.9 million bore interest at LIBOR + 1.25% and was scheduled to mature in December 2005. The new mortgage loan totaling $63.0 million requires interest-only payments at a fixed rate of 5.55% per annum and matures in September 2014.

On September 28, 2004, the Company completed the sale of 204 Second Avenue, for approximately $6.0 million. This Class A office property which is approximately 41,000 square feet is located in Waltham, Massachusetts.

On September 30, 2004, a joint venture in which the Company has a 35% interest refinanced the mortgage loan secured by 265 Franklin Street located in Boston, Massachusetts. The old mortgage loan totaling $54.0 million bore interest at a floating rate equal to LIBOR + 1.30% and was scheduled to mature on October 1, 2004. The new mortgage loan facility totaling $70.0 million is comprised of $55.0 million disbursed at closing and an additional $15.0 million available to be drawn to fund future tenant improvement and leasing costs. The new mortgage loan facility requires interest-only payments at a floating rate equal to LIBOR + 1.10% and matures in September 2007, with two one-year extension options.

In September 2004, the Company commenced the redevelopment of its Capital Gallery property in Washington, D.C. Capital Gallery is a Class A office property totaling approximately 397,000 square feet. The project entails removing a three-story low-rise section of the property comprised of 100,000 square feet from in-service status and redeveloping it into a 10-story office building resulting in a total complex size of approximately 610,000 square feet upon completion. The redevelopment cost is estimated at approximately $69.0 million and is expected to be completed by the end of 2005.

The Company placed-in-service New Dominion Tech. Park, Building Two, a 257,400 square foot Class A office property located in Herndon, Virginia. This project is 100% leased.

Transactions completed subsequent to September 30, 2004:

In October 2004, the Company formed a strategic partnership with the Stichting Pensioenfonds ABP and Teachers Insurance and Annuity Association of America to pursue the acquisition of value-added investments in non-core office assets within the Company’s existing markets. The Company intends to leverage its regional operating platform to source and acquire properties that will generate opportunity for value creation through repositioning, capital improvements and/or leasing strategies. The venture will not engage in any ground-up development. The venture has total equity commitments of $140 million, of which the Company has committed $35 million. The Company will receive asset management, property management, leasing and redevelopment fees, and if certain return thresholds are achieved will be entitled to an additional promoted interest.

On October 5, 2004, the Company executed a contract to acquire Worldgate Plaza, a 322,000 square foot office complex located in Herndon, Virginia at a purchase price of

approximately $78.2 million. The property is being acquired for inclusion in the Company’s strategic partnership, as discussed above. The acquisition is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the acquisition will be consummated on the terms currently contemplated or at all, management has no reason to believe that the closing will not occur as expected by November 2004.

EPS and FFO per Share Guidance:

The Company’s guidance for the fourth quarter of 2004 and the full year 2005 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.


	Fourth Quarter 2004					Full Year 2005
	Low		—	High		Low		—	High
Projected EPS (diluted)	$	0.61	—	$	0.62	$	2.30	—	$	2.45
Add:
Projected Company Share of Real Estate Depreciation and Amortization	$	0.44	—	$	0.44	$	1.80	—	$	1.80
Less:
Gains on Sales of Real Estate	$	0.01	—	$	0.01	$	0.00	—	$	0.00

Projected FFO per Share (diluted)	$	1.04	—	$	1.05	$	4.10	—	$	4.25

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, October 27, 2004 at 10:00 AM (Eastern Time), open to the general public, to discuss the third quarter 2004 results, the 2005 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 November 3, 2004 by dialing (800) 405-2236 and entering the passcode 11010532. 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’ third 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 fourth quarter of 2004 and the full year 2005.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	274,138		$	251,391		$	794,590		$	743,138
Recoveries from tenants		43,415			41,146			123,608			117,391
Parking and other		15,652			13,244			42,944			41,383

Total rental revenue		333,205			305,781			961,142			901,912
Hotel revenue		19,768			17,542			52,112			48,001
Development and management services		5,835			3,616			15,126			13,635
Interest and other		908			1,089			9,526			2,167

Total revenue		359,716			328,028			1,037,906			965,715

Expenses
Operating:
Rental		109,395			105,945			312,004			299,006
Hotel		13,709			12,829			38,763			36,258
General and administrative		13,002			11,183			38,095			33,610
Interest		77,698			75,343			226,792			224,435
Depreciation and amortization		66,523			52,991			183,521			152,666
Net derivative (gains)/losses		—			(885	)		—			1,038
Losses from early extinguishments of debt		—			—			6,258			1,474

Total expenses		280,327			257,406			805,433			748,487

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		79,389			70,622			232,473			217,228
Minority interests in property partnerships		1,447			648			3,127			1,457
Income from unconsolidated joint ventures		460			1,343			2,716			5,354

Income before minority interest in Operating Partnership, gains on sales of real estate and other assets and discontinued operations		81,296			72,613			238,316			224,039
Minority interest in Operating Partnership		(16,993	)		(17,913	)		(52,198	)		(55,125	)

Income before gains on sales of real estate and other assets and discontinued operations		64,303			54,700			186,118			168,914
Gains on sales of real estate and other assets, net of minority interest		—			1,341			8,132			57,729

Income before discontinued operations		64,303			56,041			194,250			226,643
Discontinued Operations:
Income from discontinued operations, net of minority interest		89			929			1,219			4,988
Gains on sales of real estate from discontinued operations, net of minority interest		4,150			—			26,201			73,436

Net income available to common shareholders	$	68,542		$	56,970		$	221,670		$	305,067

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.59		$	0.58		$	1.84		$	2.28
Discontinued operations, net of minority interest		0.04			0.01			0.26			0.81

Net income available to common shareholders	$	0.63		$	0.59		$	2.10		$	3.09

Weighted average number of common shares outstanding		108,339			97,360			105,492			96,547

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.58		$	0.56		$	1.80		$	2.25
Discontinued operations, net of minority interest		0.04			0.01			0.25			0.80

Net income available to common shareholders	$	0.62		$	0.57		$	2.05		$	3.05

Weighted average number of common and common equivalent shares outstanding		110,581			99,183			107,718			98,029

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	September 30, 2004			December 31, 2003
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	9,053,584		$	8,202,958
Development in progress		19,279			542,600
Land held for future development		221,901			232,098
Real estate held for sale, net		45			5,604
Less: accumulated depreciation		(1,151,896	)		(1,001,435	)

Total real estate		8,142,913			7,981,825
Cash and cash equivalents		213,873			22,686
Cash held in escrows		24,137			21,321
Tenant and other receivables, net of allowance for doubtful accounts of $2,771 and $3,157, respectively		12,936			18,425
Accrued rental income, net of allowance of $5,417 and $5,030, respectively		232,143			189,852
Deferred charges, net		240,834			188,855
Prepaid expenses and other assets		57,302			39,350
Investments in unconsolidated joint ventures		88,276			88,786

Total assets	$	9,012,414		$	8,551,100

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,545,477		$	3,471,400
Unsecured senior notes, net of discount		1,470,592			1,470,320
Unsecured line of credit		—			63,000
Accounts payable and accrued expenses		88,124			92,026
Dividends and distributions payable		90,942			84,569
Interest rate contracts		2,928			8,191
Accrued interest payable		41,007			50,931
Other liabilities		89,813			80,367

Total liabilities		5,328,883			5,320,804

Commitments and contingencies		—			—

Minority interests		790,758			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, 109,065,597 and 98,309,077 shares issued and 108,986,697 and 98,230,177 shares outstanding in 2004 and 2003, respectively		1,090			982
Additional paid-in capital		2,582,036			2,104,158
Earnings in excess of dividends		334,736			320,900
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(6,555	)		(6,820	)
Accumulated other comprehensive loss		(15,812	)		(16,335	)

Total stockholders’ equity		2,892,773			2,400,163

Total liabilities and stockholders’ equity	$	9,012,414		$	8,551,100

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended September 30,						Nine months ended September 30,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	68,542		$	56,970		$	221,670		$	305,067
Add:
Minority interest in Operating Partnership		16,993			17,913			52,198			55,125
Less:
Minority interests in property partnerships		1,447			648			3,127			1,457
Income from unconsolidated joint ventures		460			1,343			2,716			5,354
Gains on sales of real estate and other assets, net of minority interest		—			1,341			8,132			57,729
Income from discontinued operations, net of minority interest		89			929			1,219			4,988
Gains on sales of real estate from discontinued operations, net of minority interest		4,150			—			26,201			73,436

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		79,389			70,622			232,473			217,228
Add:
Real estate depreciation and amortization (2)		67,538			54,606			187,330			158,735
Income from discontinued operations		160			1,218			1,639			6,315
Income from unconsolidated joint ventures		460			1,343			2,716			5,354
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		17			(805	)		(1,045	)		(2,513	)
Preferred distributions		(3,491	)		(5,183	)		(11,689	)		(16,806	)

Funds from operations		144,073			121,801			411,424			369,787
Add/(subtract):
Net derivative (gains)/losses (SFAS No. 133)		—			(885	)		—			1,038

Funds from operations before net derivative gains/losses (SFAS No. 133)	$	144,073		$	120,916		$	411,424		$	370,825
Less:
Minority interest in the Operating Partnership's share of funds from operations		24,136			21,859			70,812			65,703

Funds from operations available to common shareholders before net derivative gains/losses (SFAS No. 133)	$	119,937		$	99,057		$	340,612		$	305,122

Our percentage share of funds from operations—basic		83.25	%		81.92	%		82.79	%		82.28	%

Weighted average shares outstanding—basic		108,339			97,360			105,492			96,547

FFO per share basic before net derivative gains/losses (SFAS No. 133)	$	1.11		$	1.02		$	3.23		$	3.16

FFO per share basic after net derivative gains/losses (SFAS No. 133)	$	1.11		$	1.02		$	3.23		$	3.15

Weighted average shares outstanding—diluted		116,149			107,231			113,998			106,839

FFO per share diluted before net derivative gains/losses (SFAS No. 133)	$	1.07		$	0.98		$	3.11		$	3.04

FFO per share diluted after net derivative gains/losses (SFAS No. 133)	$	1.07		$	0.99		$	3.11		$	3.03

(1)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) (computed in accordance with 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. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in 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 our comparative operating and financial performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excludi 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.

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $66,523, $52,991, 183,521 and $152,666, our share of unconsolidated joint venture real estate depreciation and amortization of $1,636, $1,820, $5,016 and $6,601 and depreciation and amortization from discontinued operations of $37, $465, $685 and $1,482, less corporate related depreciation and amortization of $658, $670, 1,892 and $2,014 for the three months and nine months ended September 30, 2004 and 2003, respectively.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	September 30, 2004		December 31, 2003
Greater Boston	89.9	%	88.9	%
Greater Washington, D.C.	97.6	%	95.1	%
Midtown Manhattan	95.5	%	99.4	%
Baltimore, MD	95.0	%	95.1	%
Richmond, VA	91.0	%	89.2	%
Princeton/East Brunswick, NJ	92.4	%	93.4	%
Greater San Francisco	79.3	%	82.4	%
Bucks County, PA	N/A		100.0	%

Total Portfolio	91.8	%	92.1	%


	% Leased by Type
	September 30, 2004		December 31, 2003
Class A Office Portfolio	92.0	%	92.7	%
Office/Technical Portfolio	97.7	%	89.4	%
Industrial Portfolio	20.8	%	56.6	%

Total Portfolio	91.8	%	92.1	%