SEC Filing

Company Information

Corporate Headquarters

Trading Symbol

Investor Relations

Inquires

111 Huntington Avenue

Suite 300

Boston, MA 02199

(t) 617.236.3300

(f) 617.236.3311

BXP

Stock Exchange Listing

New York Stock Exchange

Boston Properties, Inc.

111 Huntington Avenue, Suite 300

Boston, MA 02199

(t) 617.236.3322

(f) 617.236.3311

investor_relations@bostonproperties.com

www.bostonproperties.com

Financial inquiries should be directed to Michael Walsh, Vice President, Finance, at 617.236.3410 or mwalsh@bostonproperties.com

Investor or media inquires should be directed to Kathleen DiChiara, Investor Relations Manager, at 617.236.3343 or kdichiara@bostonproperties.com

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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): January 25, 2005

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 January 25, 2005, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter and full fiscal year 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 December 31, 2004.

*99.2		Press release dated January 25, 2005.

*	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: January 25, 2005	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 December 31, 2004.

*99.2		Press release dated January 25, 2005.

*	Filed herewith.

Supplemental Operating & Financial Data for the Quarter Ended December 31, 2004

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2004

Boston Properties, Inc.

Fourth 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
Value-Added Fund		18
Portfolio Overview-Square Footage		19
In-Service Property Listing		20-23
Top 20 Tenants and Tenant Diversification		24
Office Properties-Lease Expiration Roll Out		25
Office/Technical Properties-Lease Expiration Roll Out		26
Industrial Properties-Lease Expiration Roll Out		27
Retail Properties - Lease Expiration Roll Out		28
Grand Total - Office, Office/Technical, Industrial and Retail Properties		29
Greater Boston Area Lease Expiration Roll Out		30-31
Washington, D.C. Area Lease Expiration Roll Out		32-33
San Francisco Area Lease Expiration Roll Out		34-35
Midtown Manhattan Area Lease Expiration Roll Out		36-37
Princeton Area Lease Expiration Roll Out		38-39
Other Properties Lease Expiration Roll Out		40-41
CBD/Suburban Lease Expiration Roll Out		42-43
Hotel Performance		44
Occupancy Analysis		45
Same Property Performance		46
Reconciliation to Same Property Performance and Net Income		47-48
Leasing Activity		49
Capital Expenditures, Tenant Improvements and Leasing Commissions		50
Acquisitions/Dispositions		51
Value Creation Pipeline - Construction in Progress		52
Value Creation Pipeline - Land Parcels and Purchase Options		53
Definitions		54

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.

Fourth 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 and also includes three hotels and one industrial building. 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 sixteen years with Boston Properties. Chairman Mortimer Zuckerman is nationally-known, serving as Chairman and Editor-in-Chief of U.S. News and World Report and Chairman and Publisher of the New York Daily News. He holds an undergraduate degree from McGill University, a law degree from Harvard University and an MBA from the Wharton School, University of Pennsylvania. President and CEO, Edward Linde, serves on a number of corporate and philanthropic boards, including 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 December 31, 2004)


Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		December 31
Total Properties		125
Total Square Feet		44.1 million
Common Shares and
Units Outstanding (as converted)		137.4 million
Dividend — Quarter/Annualized		$0.65/$2.60
Dividend Yield		4.02%
Total Market Capitalization		$13.9 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Fourth Quarter 2004

INVESTOR INFORMATION


Board of Directors		Management
Mortimer B. Zuckerman Chairman of the Board		Robert E. Burke Executive Vice President for Operations

Edward H. Linde		Raymond A. Ritchey
President and Chief Executive Officer, Director		Executive Vice President, National Director of Acquisitions & Development

Lawrence S. Bacow		Douglas T. Linde
Director		Senior Vice President, Chief Financial Officer, and Treasurer

William M. Daley		Bryan J. Koop
Director, Chairman of Nominating & Corporate Governance Committee		Senior Vice President, Manager of Boston Office

Carol B. Einiger		Robert E. Selsam
Director		Senior Vice President, Manager of New York Office

Alan B. Landis Director		E. Mitchell Norville Senior Vice President, Manager of DC Office

Alan J. Patricof		Robert E. Pester
Director, Chairman of Audit Committee		Senior Vice President, Manager of San Francisco Office


Richard E. Salomon		Mitchell S. Landis
Director, Chairman of Compensation Committee		Senior Vice President, Manager of Princeton Office

Martin Turchin		Frank D. Burt
Director		Senior Vice President, General Counsel

David A. Twardock		Arthur S. Flashman
Director		Vice President and Controller

Common Stock Data (NYSE: BXP)

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


	Q4 2004			Q3 2004			Q2 2004			Q1 2004			Q4 2003
High Price	$	64.85		$	56.29		$	55.54		$	54.89		$	48.47
Low Price	$	56.25		$	49.86		$	43.63		$	46.69		$	43.40
Average Closing Price	$	60.40		$	53.57		$	48.15		$	51.06		$	46.02
Closing Price, at the end of the quarter	$	64.67		$	55.39		$	50.08		$	54.31		$	48.19
Dividends per share - annualized (1)	$	2.60		$	2.60		$	2.60		$	2.52		$	2.52
Closing dividend yield - annualized		4.02	%		4.69	%		5.19	%		4.64	%		5.23	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		137,399			136,277			135,889		$	135,582			127,683
Closing market value of outstanding shares and units (thousands)	$	8,885,593		$	7,548,404		$	6,805,321		$	7,363,458		$	6,153,044

(1)

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

Timing

Quarterly results for 2005 will be announced according to the following schedule:


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

Boston Properties, Inc.

Fourth Quarter 2004

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage
David Aubuchon		Chris Brown
A.G. Edwards & Sons		Banc of America Securities
314.955.5452		704.386.2524

Ross Nussbaum / John Kim		Susan Berliner
Banc of America Securities		Bear Stearns & Company
212.847.5668 / 212.847.5761		212.272.3824

Ross Smotrich / Jeffrey Langbaum		Thierry Perrein
Bear Stearns & Company		Credit Suisse First Boston
212.272.8046 / 212.272.4201		212.538.8618

Louis Taylor /Christoper Capolongo		Scott O’Shea
Deutsche Bank Securities		Deutsche Bank Securities
212.250.4912 / 212.250.7726		212.250.7190

David Loeb / Gustavo Sarago		Mark Streeter
Friedman, Billings, Ramsey & Co.		J.P. Morgan Securities
703.469.1289 / 703.469.1042		212.834.5086

Carey Callaghan / Allison Widman		John Forrey
Goldman Sachs & Company		Merrill Lynch & Company
212.902.4351 / 212.902.2796		212.449.1812

Jim Sullivan / Michael Knott		Thomas Cook
Green Street Advisors		Smith Barney Citigroup
949.640.8780		212.723.1112

Anthony Paolone / Michael Mueller
J.P. Morgan Securities
212.622.6682 / 212.622.6689
		Rating Agencies:

Francis Greywitt/Michael Salinsky		William Travers
KeyBanc Capital Markets		Fitch Ratings
216.443.4795 / 216.563.2348		212.908.0304

David Shulman / David Toti		Karen Nickerson
Lehman Brothers		Moody’s Investors Service
212.526.3413 / 212.526.2002		212.553.4924

Steve Sakwa / Brian Legg		James Fielding
Merill Lynch & Company		Standard & Poor’s
212.449.0335 / 212.449.1153		212.438.2452

Gregory Whyte / David Cohen
Morgan Stanley & Company
212.761.6331 / 212.761.8564

James Sullivan /James Feldman
Prudential Equity Group
212.778.2515 / 212.778.1724

Jay Leupp / David Copp
RBC Capital Markets (US)
415.633.8588 / 415.633.8558

Jonathan Litt / John Stewart
Smith Barney Citigroup
212.816.0231 / 212.816.1685

Keith Mills / Srikanth Nagarajan
UBS Securities
212.713.3098 / 212.713.6144

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.

Fourth 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 54.


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

Revenue	$	362,615		$	359,716		$	344,860		$	333,330		$	333,905
Straight line rent (SFAS 13)	$	19,218		$	16,954		$	13,487		$	11,620		$	14,536
Fair value lease revenue (SFAS 141) (1)	$	245		$	241		$	268		$	(83	)	$	(53	)
Lease termination fees (included in revenue) (2)	$	634		$	1,800		$	—		$	1,558		$	1,401
Capitalized interest	$	721		$	1,758		$	3,539		$	4,831		$	5,192
Capitalized wages	$	1,549		$	1,459		$	1,565		$	1,357		$	1,209
Operating Margins [(rental revenue - rental expenses)/rental revenue] (3)		69.1	%		68.9	%		69.4	%		69.6	%		69.5	%
Net income available to common shareholders	$	62,254		$	68,542		$	87,118		$	66,048		$	60,592

Funds from operations (FFO) available to common shareholders (4)	$	118,891		$	119,937		$	116,904		$	103,831		$	106,932

FFO per share - diluted (4)	$	1.05		$	1.07		$	1.05		$	0.99		$	1.05
Net income available to common shareholders per share - basic	$	0.57		$	0.63		$	0.81		$	0.65		$	0.62
Net income available to common shareholders per share - diluted	$	0.56		$	0.62		$	0.79		$	0.64		$	0.61
Dividends per share	$	0.65		$	0.65		$	0.65		$	0.63		$	0.63
Funds available for distribution to common shareholders and common unitholders (FAD) (5)	$	78,964		$	101,147		$	109,181		$	98,135		$	85,497

Ratios:

Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.64			2.74			2.80			2.66			2.68
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.62			2.68			2.67			2.50			2.50
FFO Payout Ratio (7)		61.90	%		60.75	%		61.90	%		63.64	%		60.00	%
FAD Payout Ratio (8)		109.43	% (9)		83.73	%		77.52	%		82.49	%		88.86	%

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

Total Debt	$	5,011,814		$	5,016,069		$	4,994,703		$	4,910,761		$	5,004,720
Price @ Quarter End	$	64.67		$	55.39		$	50.08		$	54.31		$	48.19
Equity Value @ Quarter End	$	8,885,593		$	7,548,404		$	6,805,321		$	7,363,458		$	6,153,044
Total Market Capitalization (10)	$	13,897,407		$	12,564,473		$	11,800,024		$	12,274,219		$	11,157,764
Debt/Total Market Capitalization (10)		36.09	%		39.92	%		42.33	%		40.01	%		44.85	%

(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 $6,541, $8,312, $5,900, $6,370 and $6,620 for the three months ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

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

(5)	For a quantitative reconciliation of the differences between FAD and FFO, see page 10.

(6)	For additional detail, see page 10.

(7)	Dividends per Common share divided by FFO per share - diluted.

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

(9)	Includes leasing costs associated with the renewal of a 332,017 square foot lease, which costs are expected to be expended over the next three years. Excluding these costs, the FAD payout ratio would be 89.23%.

(10)	For additional detail, see page 12.

Boston Properties, Inc.

Fourth Quarter 2004

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003
ASSETS
Real estate	$	9,033,858		$	9,053,584		$	8,427,296		$	8,272,848		$	8,202,958
Construction in progress		35,063			19,279			606,012			579,751			542,600
Land held for future development		222,306			221,901			230,155			228,361			232,098
Real estate held for sale		—			45			5,756			42,449			5,604
Less accumulated depreciation		(1,143,369	)		(1,151,896	)		(1,099,715	)		(1,047,911	)		(1,001,435	)

Total real estate		8,147,858			8,142,913			8,169,504			8,075,498			7,981,825
Cash and cash equivalents		239,344			213,873			227,698			182,151			22,686
Escrows		24,755			24,137			27,888			25,666			21,321
Tenant and other receivables, net		25,500			12,936			11,637			14,962			18,425
Accrued rental income, net		251,236			232,143			215,536			202,604			189,852
Deferred charges, net		254,950			240,834			212,666			196,598			188,855
Prepaid expenses and other assets		38,630			57,302			33,388			56,001			39,350
Investments in unconsolidated joint ventures		80,955			88,276			83,950			83,555			88,786

Total assets	$	9,063,228		$	9,012,414		$	8,982,267		$	8,837,035		$	8,551,100

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,541,131		$	3,545,477		$	3,524,202		$	3,440,351		$	3,471,400
Unsecured senior notes, net of discount		1,470,683			1,470,592			1,470,501			1,470,410			1,470,320
Unsecured line of credit		—			—			—			—			63,000
Accounts payable and accrued expenses		94,451			88,124			91,790			110,002			92,026
Dividends and distributions payable		91,428			90,942			91,350			89,166			84,569
Interest rate contracts		1,164			2,928			4,800			6,417			8,191
Accrued interest payable		50,670			41,007			50,318			41,984			50,931
Other liabilities		91,300			89,813			89,145			79,390			80,367

Total liabilities		5,340,827			5,328,883			5,322,106			5,237,720			5,320,804

Commitments and contingencies		—			—			—			—			—

Minority interests		786,328			790,758			804,172			851,901			830,133

Stockholders’ Equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 110,320,485, 108,986,697, 108,160,487, 106,442,998 and 98,230,177 outstanding, respectively		1,103			1,090			1,082			1,064			982
Additional paid-in capital		2,633,980			2,582,036			2,544,278			2,453,215			2,104,158
Earnings in excess of dividends		325,452			334,736			336,704			319,890			320,900
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(6,103	)		(6,555	)		(7,367	)		(7,872	)		(6,820	)
Accumulated other comprehensive loss		(15,637	)		(15,812	)		(15,986	)		(16,161	)		(16,335	)

Total stockholders’ equity		2,936,073			2,892,773			2,855,989			2,747,414			2,400,163

Total liabilities and stockholders’ equity	$	9,063,228		$	9,012,414		$	8,982,267		$	8,837,035		$	8,551,100

Boston Properties, Inc.

Fourth Quarter 2004

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	31-Dec-04			30-Sep-04			30-Jun-04			31-Mar-04			31-Dec-03
Revenue:
Rental
Base Rent	$	276,216		$	274,138		$	265,139		$	255,313		$	256,360
Recoveries from tenants		41,621			43,415			39,406			40,787			37,834
Parking and other		14,369			15,652	(1)		14,094			13,198			12,213

Total rental revenue		332,206			333,205			318,639			309,298			306,407
Hotel revenues		24,230			19,768			19,166			13,178			22,082
Development and management services		5,338			5,835			5,965			3,326			4,550
Interest and other		841			908			1,090			7,528	(2)		866

Total revenue		362,615			359,716			344,860			333,330			333,905

Expenses:
Operating		62,608			66,423			60,238			61,022			58,325
Real estate taxes		44,466			42,972			41,514			39,834			39,927
Hotel operating		16,961			13,709			13,376			11,678			15,992
General and administrative		15,541			13,002			12,493			12,600			11,749
Interest (3)		79,378			77,698			74,789			74,305			75,001
Depreciation and amortization		68,735			66,523			60,704			56,294			55,824
Loss from early extinguishment of debt		—			—			—			6,258			—

Total expenses		287,689			280,327			263,114			261,991			256,818

Income before minority interests and income from unconsolidated joint ventures		74,926			79,389			81,746			71,339			77,087
Minority interest in property partnerships		1,558			1,447			1,292			385			370
Income from unconsolidated joint ventures		664			460			879			1,377			662

Income before minority interest in Operating Partnership		77,148			81,296			83,917			73,101			78,119
Minority interest in Operating Partnership (4)		(16,000	)		(16,993	)		(17,895	)		(17,265	)		(18,676	)

Income before gains on sales of real estate and other assets		61,148			64,303			66,022			55,836			59,443
Gains on sales of real estate and other assets, net of minority interest		—			—			1,377			6,698			—

Income before discontinued operations		61,148			64,303			67,399			62,534			59,443
Income from discontinued operations, net of minority interest		19			89			130			993			1,149
Gains on sales of real estate from discontinued operations, net of minority interest		1,087			4,150			19,589			2,521			—

Net income available to common shareholders	$	62,254		$	68,542		$	87,118		$	66,048		$	60,592


INCOME PER SHARE OF COMMON STOCK (EPS)

Net income available to common shareholders per share - basic	$	0.57		$	0.63		$	0.81		$	0.65		$	0.62

Net income available to common shareholders per share - diluted	$	0.56		$	0.62		$	0.79		$	0.64		$	0.61

(1)	Includes $1.8 million from settlement of 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 $721, $1,758, $3,539, $4,831 and $5,192 for the three months ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

(4)

Equals minority interest share of 16.51%, 16.75%, 16.96%, 17.96% and 18.59% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

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

Boston Properties, Inc.

Fourth Quarter 2004

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	31-Dec-04			30-Sep-04			30-Jun-04		31-Mar-04		31-Dec-03
Net income available to common shareholders	$	62,254		$	68,542		$	87,118	$	66,048	$	60,592
Add:
Minority interest in Operating Partnership		16,000			16,993			17,895		17,265		18,676
Less:
Minority interest in property partnerships		1,558			1,447			1,292		385		370
Income from unconsolidated joint ventures		664			460			879		1,377		662
Gain on sales of real estate and other assets, net of minority interest		—			—			1,377		6,698		—
Income from discontinued operations, net of minority interest		19			89			130		993		1,149
Gain on sales of real estate from discontinued operations, net of minority interest		1,087			4,150			19,589		2,521		—

Income before minority interests and income from unconsolidated joint ventures		74,926			79,389			81,746		71,339		77,087
Add:
Real estate depreciation and amortization (1)		69,989			67,538			61,919		57,873		57,500
Income from discontinued operations		64			160			211		1,267		1,490
Income from unconsolidated joint ventures		664			460			879		1,377		662
Less:
Minority property partnerships’ share of funds from operations		(123	)		(17	)		158		904		945
Preferred dividends and distributions		3,361			3,491			3,813		4,385		4,443

Funds from operations (FFO)		142,405			144,073			140,784		126,567		131,351

Less:
Minority interest in Operating Partnership’s share of funds from operations		23,514			24,136			23,880		22,736		24,419

FFO available to common shareholders (2)	$	118,891		$	119,937		$	116,904	$	103,831	$	106,932

FFO per share - basic	$	1.09		$	1.11		$	1.09	$	1.03	$	1.09

Weighted average shares outstanding - basic		109,359			108,339			107,216		100,890		97,945

FFO per share - diluted	$	1.05		$	1.07		$	1.05	$	0.99	$	1.05

Weighted average shares outstanding - diluted		117,269			116,149			115,208		110,577		107,188

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003
	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)
Basic FFO	$	142,405	130,987	$	144,073	130,141	$	140,784	129,116	$	126,567	122,983	$	131,351	120,312
Effect of Dilutive Securities
Convertible Preferred Units		3,361	5,381		3,491	5,568		3,813	6,192		4,385	7,087		4,443	7,087
Stock Options and other		—	2,529		—	2,242		—	1,800		—	2,599		—	2,155

Diluted FFO	$	145,766	138,897	$	147,564	137,951	$	144,597	137,108	$	130,952	132,669	$	135,794	129,554

Less:
Minority interest in Operating Partnership’s share of diluted funds from operations		22,698	21,628		23,321	21,802		23,097	21,900		21,806	22,092		23,444	22,366

Company’s share of diluted FFO (3)	$	123,068	117,269	$	124,243	116,149	$	121,500	115,208	$	109,146	110,577	$	112,350	107,188

FFO per share - basic	$	1.09		$	1.11		$	1.09		$	1.03		$	1.09

FFO per share - diluted	$	1.05		$	1.07		$	1.05		$	0.99		$	1.05

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $68,735, $66,523, $60,704, $56,294 and $55,824, our share of unconsolidated joint venture real estate depreciation and amortization of $1,798, $1,636, $1,683, $1,697 and $1,874 and depreciation and amortization from discontinued operations of $0, $37, $149, $499 and $505, less corporate related depreciation of $544, $658, $617, $617 and $703 for the three months ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

(2)	Based on weighted average shares for the quarter. Company’s share for the quarter ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003 was 83.49%, 83.25%, 83.04%, 82.04% and 81.41%, respectively.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003 was 84.43%, 84.20%, 84.03%, 83.35% and 82.74%, respectively.

Boston Properties, Inc.

Fourth Quarter 2004

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003
Funds from operations (FFO) (see page 9)	$	142,405		$	144,073		$	140,784		$	126,567		$	131,351
2nd generation tenant improvements and leasing commissions		(33,462	)(1)		(19,583	)		(17,693	)		(15,102	)		(23,190	)
Straight-line rent		(19,218	)		(16,954	)		(13,487	)		(11,620	)		(14,536	)
Recurring capital expenditures		(10,921	)		(6,831	)		(4,138	)		(3,211	)		(8,413	)
Fair value interest adjustment		(798	)		(793	)		(787	)		(340	)		(337	)
Fair value lease revenue (SFAS 141)		(245	)		(241	)		(268	)		83			53
Hotel improvements, equipment upgrades and replacements		(262	)		(238	)		(228	)		(273	)		(676	)
Non real estate depreciation		544			658			617			617			703
Stock-based compensation		898			955			933			1,279			451
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		23			101			3,448			135			91

Funds available for distribution to common shareholder and common unitholders (FAD)	$	78,964		$	101,147		$	109,181		$	98,135		$	85,497


*Interest Coverage Ratios* *(in thousands, except for ratio amounts)*
	Three Months Ended
	December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004			December 31, 2003
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	74,926		$	79,389		$	81,746		$	71,339		$	77,087
Interest expense		79,378			77,698			74,789			74,305			75,001
Depreciation		68,735			66,523			60,704			56,294			55,824
Depreciation from joint ventures		1,798			1,636			1,683			1,697			1,874
Income from unconsolidated joint ventures		664			460			879			1,377			662
Discontinued Operations - depreciation		—			37			149			499			505
Discontinued operations		64			160			211			1,267			1,490
Straight-line rent		(19,218	)		(16,954	)		(13,487	)		(11,620	)		(14,536	)
Fair value lease revenue (SFAS 141)		(245	)		(241	)		(268	)		83			53

Subtotal		206,102			208,708			206,406			195,241			197,960

Divided by:
Interest expense (2)		78,051			76,242			73,683			73,305			73,975
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		78,051			76,242			73,683			73,305			73,975

Interest Coverage Ratio		2.64			2.74			2.80			2.66			2.68

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	74,926		$	79,389		$	81,746		$	71,339		$	77,087
Interest expense		79,378			77,698			74,789			74,305			75,001
Depreciation		68,735			66,523			60,704			56,294			55,824
Depreciation from joint ventures		1,798			1,636			1,683			1,697			1,874
Income from unconsolidated joint ventures		664			460			879			1,377			662
Discontinued operations		64			160			211			1,267			1,490
Fair value lease revenue (SFAS 141)		(245	)		(241	)		(268	)		83			53
Straight-line rent		(19,218	)		(16,954	)		(13,487	)		(11,620	)		(14,536	)
Discontinued Operations - depreciation		—			37			149			499			505

Subtotal		206,102			208,708			206,406			195,241			197,960

Divided by:
Interest expense (2) (3)		78,772			78,000			77,222			78,136			79,167
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		78,772			78,000			77,222			78,136			79,167
Interest Coverage Ratio		2.62			2.68			2.67			2.50			2.50

(1)	Includes $17,736 leasing costs associated with the renewal of a 332,017 square foot lease expected to be expended over the next three years.

(2)	Excludes amortization of financing costs of $1,327, $1,456, $1,106, $1,000 and $1,026 for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

(3)	Includes capitalized interest of $721, $1,758, $3,539, $4,831 and $5,192 for the quarters ended December 31, 2004, September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003, respectively.

Boston Properties, Inc.

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


	Three Months Ended
	31-Dec-04		30-Sep-04		30-Jun-04		31-Mar-04		31-Dec-03
Total Revenue (1)	$	73	$	354	$	521	$	2,256	$	2,662

Expenses:
Operating		9		157		161		490		668
Depreciation and amortization		—		37		149		499		505

Total Expenses		9		194		310		989		1,173

Income before minority interests		64		160		211		1,267		1,489

Minority interest in property partnership		41		53		54		57		78
Minority interest in Operating Partnership		4		18		27		217		262

Income from discontinued operations (net of minority interest)	$	19	$	89	$	130	$	993	$	1,149

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

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

Boston Properties, Inc.

Fourth Quarter 2004

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal December 31, 2004
Mortgage Notes Payable	$	3,541,131
Unsecured Line of Credit		—
Unsecured Senior Notes, net of discount		1,470,683

Total Debt	$	5,011,814


Boston Properties Limited Partnership 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	$	1,510		$	273		$	367		$	2,167			4,317

Unsecured Senior Notes, net of discount	$	248,490		$	299,727		$	174,633		$	747,833		$	1,470,683


*Equity*
*(in thousands)*
	Shares/ Units Outstanding as of 12/31/04	Common Stock Equivalents		Equivalent (1)
Common Stock	110,320	110,320	(2)	$	7,134,394
Common Operating Partnership Units	21,722	21,722	(3)		1,404,762
Series Two Preferred Operating Partnership Units	4,082	5,357			346,437

Total Equity		137,399		$	8,885,593

Total Debt					5,011,814

Total Market Capitalization				$	13,897,407

(1)	Value based on December 31, 2004 closing price of $64.67 per share of common stock.

(2)	Includes 326 shares of restricted stock, of which 88 shares are vested as of December 31, 2004.

(3)	Includes 170 long-term incentive plan units, of which 2 units are vested as of December 31, 2004.

Boston Properties, Inc.

Fourth Quarter 2004

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2005			2006			2007			2008			2009			Thereafter			Total
Floating Rate Debt	$	—		$	—		$	423,790		$	—		$	—		$	—		$	423,790
Fixed Rate Debt		279,029			308,333			187,318			974,758			188,278			2,650,308			4,588,024

Total Debt	$	279,029		$	308,333		$	611,108		$	974,758		$	188,278		$	2,650,308		$	5,011,814

Weighted Average Floating Rate Debt		—			—			3.36	%		—			—			—			3.36	%
Weighted Average Fixed Rate Debt		7.03	%		6.28	%		6.61	%		6.81	%		7.11	%		6.58	%		6.66	%

Total Weighted Average Rate		7.03	%		6.28	%		4.36	%		6.81	%		7.11	%		6.58	%		6.38	%

Unsecured Debt

Unsecured Line of Credit - Matures January 17, 2006

(in thousands)


Facility	Outstanding @ 12/31/04		Letters of Credit		Remaining Capacity @ 12/31/04
$605,000	$	—	$	8,561	$	596,439

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.34	%	5.95	%	8.9 years
Secured Debt	70.66	%	6.56	%	4.4 years

Total Debt	100.00	%	6.38	%	5.7 years


*Floating and Fixed Rate Debt Analysis*
	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	8.46	%	3.36	%	2.1 years
Fixed Rate Debt	91.54	%	6.66	%	6.0 years

Total Debt	100.00	%	6.38	%	5.7 years

Boston Properties, Inc.

Fourth Quarter 2004

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2005			2006			2007			2008			2009			Thereafter			Total
Citigroup Center	$	6,651		$	7,145		$	7,676		$	8,246		$	8,858		$	466,148		$	504,724
Times Square Tower		—			—			423,790	(1)		—			—			—			423,790
Embarcadero Center One, Two and Federal Reserve		5,141			5,496			5,877			278,912			—			—			295,426
Prudential Center		4,919			5,256			5,619			259,706			—			—			275,500
280 Park Avenue		3,261			3,519			3,798			4,099			4,423			240,272			259,372
599 Lexington Avenue		225,000	(2)		—			—			—			—			—			225,000
Embarcadero Center Four		3,797			4,061			4,346			129,712			—			—			141,916
Embarcadero Center Three		2,506			2,671			132,726			—			—			—			137,903
Riverfront Plaza		3,104			3,314			3,540			95,325			—			—			105,283
Democracy Center		2,103			2,257			2,421			2,597			91,132			—			100,510
Embarcadero Center West Tower		1,649			90,416			—			—			—			—			92,065
100 East Pratt Street		2,100			2,246			2,401			78,110			—			—			84,857
601 and 651 Gateway Boulevard		—			81,952			—			—			—			—			81,952
One Freedom Square		1,896			2,005			2,122			2,245			2,375			71,266			81,909
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		1,313			1,387			1,466			1,549			1,637			53,849			61,201
202, 206 & 214 Carnegie Center		719			780			845			916			994			56,306			60,560
1330 Connecticut Avenue		2,136			2,238			2,346			2,452			2,577			47,722			59,471
New Dominion Technology Park, Building One		655			1,283			1,379			1,481			1,594			50,964			57,356
Reservoir Place		1,400			1,484			1,572			1,666			48,592			—			54,714
Capital Gallery		1,524			50,651			—			—			—			—			52,175
504, 506 & 508 Carnegie Center		1,136			1,221			1,314			40,914			—			—			44,585
10 & 20 Burlington Mall Rd & 91 Hartwell		745			801			861			925			994			33,593			37,919
10 Cambridge Center		659			715			777			844			916			29,677			33,588
Sumner Square		557			599			645			694			747			25,495			28,737
1301 New York Avenue		1,417			1,531			1,651			1,781			21,628			—			28,008
Eight Cambridge Center		601			649			702			757			819			22,911			26,439
510 Carnegie Center		635			683			735			23,519			—			—			25,572
University Place		752			806			864			925			992			18,422			22,761
Reston Corporate Center		654			698			745			20,524			—			—			22,621
Bedford Business Park		751			818			890			16,859			—			—			19,318
191 Spring Street		686			18,267			—			—			—			—			18,953
101 Carnegie Center		373			6,622			—			—			—			—			6,995
Montvale Center		189			6,762			—			—			—			—			6,951

		279,029			308,333			611,108			974,758			188,278			1,179,625			3,541,131

Unsecured Senior Notes		—			—			—			—			—			1,470,683			1,470,683
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	279,029		$	308,333		$	611,108		$	974,758		$	188,278		$	2,650,308		$	5,011,814

% of Total Debt		5.57	%		6.15	%		12.19	%		19.45	%		3.76	%		52.89	%		100.00	%
Balloon Payments	$	225,000		$	252,855		$	556,516		$	930,476		$	158,698		$	2,561,834		$	4,685,379
Scheduled Amortization	$	54,029		$	55,478		$	54,592		$	44,282		$	29,580		$	88,474		$	326,435

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

(2)	Matures on July 19, 2005.

Boston Properties, Inc.

Fourth Quarter 2004

Senior Unsecured Debt Covenant Compliance Ratios

(in thousands)

In the fourth quarter of 2002 the Company’s operating partnership (Boston Properties Limited 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 December 31, 2004 to show that the Company’s operating partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt securities. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.


		December 31, 2004
Total Assets:
Capitalized Property Value		$	11,339,273
Cash and Cash Equivalents			239,344
Undeveloped Land, at Cost			222,306
Development in Process, at Cost (including Joint Venture %)			80,597

Total Assets		$	11,881,520

Unencumbered Assets		$	4,953,628

Secured Debt (Fixed and Variable) (1)		$	3,520,033
Joint Venture Debt			196,476
Contingent Liabilities & Letters of Credit			19,504
Unsecured Debt (2)			1,475,000

Total Outstanding Debt		$	5,211,013

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)		$	74,926
Add: Interest Expense (per Consolidated Income Statement)			79,378
Add: Depreciation and Amortization (per Consolidated Income Statement)			68,735
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)			—

EBITDA			223,039
Add: Company share of unconsolidated joint venture EBITDA			5,148

Consolidated EBITDA		$	228,187

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)		$	79,378
Add: Company share of unconsolidated joint venture interest expense			2,686
Less: Amortization of financing costs			(1,327	)
Less: Interest expense funded by construction loan draws			—

Adjusted Interest Expense		$	80,737


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		43.9	%
Secured Debt/Total Assets	Less than 50%		31.3	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		2.83
Unencumbered Assets/ Unsecured Debt	Greater than 150%		335.8	%

Unencumbered Consolidated EBITDA		$	96,300

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			4.36

% of unencumbered Consolidated EBITDA to Consolidated EBITDA			42.2	%

# of unencumbered properties			67

(1)	Excludes Fair Value Adjustment of $24,098.

(2)	Excludes Debt Discount of $4,317.

Boston Properties, Inc.

Fourth Quarter 2004

UNCONSOLIDATED JOINT VENTURES

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of December 31, 2004


	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue (1)			801 New Jersey Avenue (1)			Wisconsin Place (1)(2)			Value- Added Fund (3)			Combined
Total Equity (4)	$	9,131		$	31,476		$	22,169		$	2,799		$	3,207		$	6,627		$	5,546		$	80,955

Mortgage/Construction loans payable (4)	$	46,984		$	68,358		$	19,250		$	42,500		$	—		$	5,134		$	14,250		$	196,476

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


*Results of Operations*
(unaudited and in thousands)
for the three months ended December 31, 2004
	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue (1)			801 New Jersey Avenue (1)			Wisconsin Place (1)(2)			Value- Added Fund (3)			Combined
REVENUE
Total revenue	$	5,269		$	6,437		$	3,461		$	1,155		$	11		$	—		$	1,192		$	17,525	(5)

EXPENSES
Operating		1,665			2,213			1,108			302			—			—			594			5,882

SUBTOTAL		3,604			4,224			2,353			853			11			—			598			11,643

Interest		1,824			2,760			428			543			—			—			325			5,880
Depreciation and amortization		1,416			1,256			869			138			—			—			440			4,119

NET INCOME	$	364		$	208		$	1,056		$	172		$	11		$	—		$	(167	)	$	1,644

BXP’s share of net income	$	182		$	106		$	370		$	43		$	5		$	—		$	(42	)	$	664
BXP’s share of depreciation & amortization		708			641			304			35			—			—			110			1,798

BXP’s share of Funds from Operations (FFO)	$	890		$	747		$	674		$	78		$	5		$	—		$	68		$	2,462

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

(2)

Represents the Company’s interest in the joint venture entity that owns the land and infrastructure as well a nominal interest in 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)	For additional information on the Value-Added Fund, see page 18.

(4)	Represents the Company’s share.

(5)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased revenue by $925 for the three months ended December 31, 2004.

Boston Properties, Inc.

Fourth Quarter 2004

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments by Property

(in thousands)


Property	2005			2006			2007			2008			2009			Thereafter			Total
Metropolitan Square (51%)*	$	830		$	901		$	978		$	1,061		$	1,152		$	63,436		$	68,358
Market Square North (50%)*		927			1,001			1,080			1,167			1,260			41,549			46,984
901 New York Avenue (25%)*		—			—			—			554			635			41,311			42,500
265 Franklin Street (35%)*		—			—			19,250			—			—			—			19,250	(1)
Wisconsin Place (23.89%) (2)*		—			1,521			1,828			1,785			—			—			5,134	(2)

	$	1,757		$	3,423		$	23,136		$	4,567		$	3,047		$	146,296		$	182,226

Weighted Average Rate (2)		7.95	%		7.95	%		3.96	%		7.40	%		7.38	%		7.22	%		6.85	%

% of Total Debt		0.96	%		1.88	%		12.70	%		2.51	%		1.67	%		80.28	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	10.87	%	3.54	%	2.7 years
Fixed Rate Debt	89.13	%	7.25	%	7.1 years

Total Debt	100.00	%	6.85	%	6.6 years

(*)	All amounts represent the Company’s share. Amounts exclude the Value-Added Fund, see page 18 for additional information on debt pertaining to the Value-Added Fund.

(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 loan is a seller financed non-interest bearing purchase money mortgage and the weighted-average interest rates exclude the impact of this loan.

Boston Properties, Inc.

Fourth Quarter 2004

Boston Properties Office Value-Added Fund, L.P.

On October 25, 2004, the Company formed Boston Properties Office Value-Added Fund, L.P. (the “Value-Added Fund”), a strategic partnership with third parties, 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 Value-Added Fund has total equity commitments of $140 million. Assuming an estimated 65% leverage ratio, the Value-Added Fund is anticipated to have up to $400 million of total investments. 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.

The Company’s interest in the Value-Added Fund is 25%. Properties held by the Value-Added Fund are not included in the Company’s portfolio information tables or any other portfolio level statistics.

Property Information


Property Name	Number of Buildings	Square Feet	Leased %		Annual Revenue per leased SF		Real Estate Net of Depreciation		Mortgage Payable			Total Equity
Worldgate Plaza, Herndon, VA	4	322,328	75.00	%	$	22.37	$	71,280	$	57,000	(1)	$	22,184

Results of Operations

(unaudited and in thousands)

for the three months ended December 31, 2004


	Worldgate Plaza (2)
REVENUE

Total revenue	$	1,192	(3)

EXPENSES
Operating		594	(4)

SUBTOTAL		598

Interest		325
Depreciation and amortization		440

NET INCOME	$	(167	)

BXP’s share of net income	$	(42	)
BXP’s share of depreciation & amortization		110

BXP’s share of Funds from Operations (FFO)	$	68

(1)	The mortgage bears interest at LIBOR plus 0.89% per annum and matures December 1, 2007 with two one-year extension options held by the lender.

(2)	Property was acquired on November 1, 2004.

(3)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) decreased revenue by $105 for the three months ended December 31, 2004.

(4)	Includes approximately $200 of initial Value-Added Fund organization costs.

Boston Properties, Inc.

Fourth 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 December 31, 2004 ⁽²⁾


Geographic Area	Square Feet Office (3)		% of NOI Office		Square Feet Office/ Technical		% of NOI Office/ Technical		Square Feet Industrial		% of NOI Industrial	Square Feet Total		Square Feet % of Total		% of NOI Hotel		% of NOI Total
Greater Boston	7,767,613	(4)	20.9	%	545,206		0.7	%	152,009		—	8,464,828		26.12	%	3.1	%	24.7	%
Greater Washington	6,729,929	(5)	16.5	%	858,583		1.3	%	—		—	7,588,512		23.42	%	—		17.8	%
Greater San Francisco	4,699,760		12.5	%	—		—		—		—	4,699,760		14.48	%	—		12.5	%
Midtown Manhattan	7,790,843		37.5	%	—		—		—		—	7,790,843		24.04	%	—		37.5	%
Princeton/East Brunswick, NJ	2,321,904		4.3	%	—		—		—		—	2,321,904		7.17	%	—		4.3	%
Baltimore, MD	637,303		1.4	%	—		—		—		—	637,303		1.97	%	—		1.4	%
Richmond, VA	909,020		1.8	%	—		—		—		—	909,020		2.81	%	—		1.8	%

	30,856,372		94.9	%	1,403,789		2.0	%	152,009		—	32,412,170		100.00	%	3.1	%	100.0	%

% of Total	95.20	%			4.33	%			0.47	%		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	18.0	%	6.7	%	24.7	%
Greater Washington	4.8	%	12.9	%	17.7	%
Greater San Francisco	11.6	%	1.0	%	12.6	%
Midtown Manhattan	37.5	%	—		37.5	%
Princeton/East Brunswick, NJ	—		4.3	%	4.3	%
Baltimore, MD	1.4	%	—		1.4	%
Richmond, VA	1.8	%	—		1.8	%

Total	75.1	%	24.9	%	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 54.

(2)	For a quantitative reconciliation of consolidated net operating income (NOI) to net income in accordance with GAAP, see page 47. For disclosures relating to our use of NOI see page 54. NOI from unconsolidated joint ventures has been excluded from consolidated NOI.

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

(4)	Includes 344,608 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

(5)	Includes 585,446 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.

Fourth Quarter 2004

In-Service Property Listing

as of December 31, 2004


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Boston
Office
800 Boylston Street - The Prudential Center	CBD Boston MA	1	1,182,299	95.6	%	$	37.94	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	504,624	86.1	%		33.20	Y	CBD
The Shops at the Prudential Center	CBD Boston MA	1	532,414	95.4	%		56.51	Y(1)	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	344,608	73.9	%		55.09	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	84.5	%		40.79	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	%		43.50	N	CBD
University Place	Mid-Cambridge MA	1	195,282	100.0	%		34.86	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	526,394	80.3	%		30.88	Y	S
(2) 140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.43	Y	S
170 Tracer Lane	Route 128 Mass Turnpike MA	1	73,258	63.7	%		23.44	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	80.4	%		25.75	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	%		35.13	N	S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	88.5	%		30.18	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	74.1	%		20.70	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	%		33.22	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	80.9	%		23.60	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	169,888	79.1	%		22.62	N	S

		40	7,767,613	91.2	%	$	36.99

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	%		11.33	N	S

		5	545,206	100.0	%	$	16.01

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

	Total Greater Boston:	46	8,464,828	90.2	%	$	35.49

Boston Properties, Inc.

Fourth Quarter 2004

In-Service Property Listing (continued)

as of December 31, 2004


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Washington, DC
Office
(2) Capital Gallery	Southwest Washington DC	1	301,647	100.0	%	$	37.54	Y	CBD
500 E Street, N. W.	Southwest Washington DC	1	242,769	100.0	%		33.98	N	CBD
Metropolitan Square (51% ownership)	East End Washington DC	1	585,446	99.9	%		41.86	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	%		47.43	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	%		47.13	Y	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		36.26	Y	CBD
Democracy Center	Montgomery County MD	3	680,876	84.6	%		32.01	Y	S
Montvale Center	Montgomery County MD	1	120,777	94.7	%		24.05	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	%		24.43	N	S
One Freedom Square	Fairfax County VA	1	410,362	100.0	%		33.14	Y	S
Two Freedom Square	Fairfax County VA	1	421,502	99.4	%		35.74	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	94.8	%		31.64	N	S
One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		35.77	N	S
New Dominion Technology Park - Building One	Fairfax County VA	1	235,201	100.0	%		31.68	Y	S
(2) New Dominion Technology Park - Building Two	Fairfax County VA	1	257,400	100.0	%		37.00	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	%		33.51	N	S
NIMA Building	Fairfax County VA	1	263,870	100.0	%		32.35	N	S

		28	6,729,929	98.2	%	$	35.16

Office/Technical
Broad Run Business Park	Loudoun County	1	128,646	73.7	%		19.78	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		17.82	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	%		20.25	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	%		15.86	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	858,583	96.1	%	$	17.46

Total Greater Washington:		40	7,588,512	97.9	%	$	33.20

Boston Properties, Inc.

Fourth Quarter 2004

In-Service Property Listing (continued)

as of December 31, 2004


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Midtown Manhattan
Office
599 Lexington Avenue	Park Avenue NY	1	1,018,793	100.0	%	$	65.26	Y	CBD
280 Park Avenue	Park Avenue NY	1	1,176,391	100.0	%		58.76	Y	CBD
Citigroup Center	Park Avenue NY	1	1,578,021	94.4	%		61.57	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,681,641	100.0	%		72.57	N	CBD
(2) Times Square Tower	Times Square NY	1	1,234,218	84.6	%		58.48	Y	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.48	N	CBD

	Total Midtown Manhattan:	6	7,790,843	96.4	%	$	62.62

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	70,029	71.5	%		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	87.3	%		33.93	Y	S
206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		29.86	Y	S
210 Carnegie Center	Princeton NJ	1	165,042	88.9	%		30.27	N	S
211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		35.40	N	S
212 Carnegie Center	Princeton NJ	1	149,354	97.6	%		32.63	N	S
214 Carnegie Center	Princeton NJ	1	150,227	75.4	%		29.77	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		32.52	N	S
502 Carnegie Center	Princeton NJ	1	116,374	100.0	%		32.94	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	71.1	%		35.21	N	S

	Total Princeton/East Brunswick, NJ:	16	2,321,904	90.2	%	$	31.22

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	833,915	89.6	%	$	43.05	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	777,579	86.1	%		47.46	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	771,948	73.0	%		40.99	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	933,437	96.0	%		60.75	Y	CBD
Federal Reserve	CBD San Francisco CA	1	149,592	0.8	%		—	Y	CBD
West Tower	CBD San Francisco CA	1	467,793	77.6	%		41.75	Y	CBD
611 Gateway	South San Francisco CA	1	256,302	100.0	%		28.71	N	S
601 and 651 Gateway	South San Francisco CA	2	509,194	54.6	%		30.73	Y	S

	Total Greater San Francisco:	9	4,699,760	80.3	%	$	45.71

Boston Properties, Inc.

Fourth Quarter 2004

In-Service Property Listing (continued)

as of December 31, 2004


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Baltimore, MD
Office
100 East Pratt Street	Baltimore MD	1	637,303	90.9	%	$	29.49	Y	CBD

Richmond, VA
Office
Riverfront Plaza	Richmond VA	1	909,020	91.3	%	$	23.78	Y	CBD

	Total In-Service Properties:	119	32,412,170	92.1	%	$	42.30

(1)	93,797 square feet of space is unencumbered.

(2)	Not included in same property analysis.

Boston Properties, Inc.

Fourth 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		3.88	%
3 Ernst and Young	1,064,939		3.29	%
4 Shearman & Sterling	585,808		1.81	%
5 Lockheed Martin Corporation	568,265		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	418,782		1.29	%
10 Washington Group International	365,245		1.13	%
11 Deutsche Bank Trust	346,617		1.07	%
12 Kirkland & Ellis	344,540	(1)	1.06	%
13 Orbital Sciences Corporation	337,228		1.04	%
14 T. Rowe Price Associates, Inc.	334,404		1.03	%
15 Northrop Grumman	326,385		1.01	%
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 Bingham McCutchen	267,905		0.83	%

Total% of Portfolio Square Feet			32.55	%
Total% of Portfolio Revenue			35.32	%

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	Seven Cambridge Center	231,028
Lockheed Martin Corporation	12290 Sunrise Valey	182,000

(1)	Includes 162,165 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.

Fourth 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
2005	1,524,660	$	55,874,950	$	36.65	$	56,042,002	$	36.76	5.16	%
2006	1,926,543		86,178,198		44.73		86,279,886		44.78	6.52	%
2007	2,070,923		81,789,109		39.49		82,859,346		40.01	7.01	%
2008	1,586,843		67,560,398		42.58		69,470,611		43.78	5.37	%
2009	2,745,973		104,758,801		38.15		111,671,834		40.67	9.29	%
2010	1,665,660		74,544,285		44.75		80,701,621		48.45	5.64	%
2011	2,496,337		107,944,033		43.24		119,658,247		47.93	8.45	%
2012	2,442,042		112,616,741		46.12		121,523,885		49.76	8.27	%
2013	796,605		26,125,828		32.80		29,056,354		36.48	2.70	%
2014	1,869,250		66,819,287		35.75		74,072,264		39.63	6.33	%
Thereafter	8,316,633		393,635,095		47.33		469,853,823		56.50	28.15	%

Occupancy By Location*


	CBD				Suburban				Total
Location	31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03
Greater Boston	93.9	%	93.7	%	87.8	%	85.4	%	91.2	%	90.1	%
Greater Washington	99.9	%	99.8	%	97.2	%	95.6	%	98.2	%	97.1	%
Midtown Manhattan	96.4	%	99.4	%	—		—		96.4	%	99.4	%
Baltimore, MD	90.9	%	95.1	%	—		—		90.9	%	95.1	%
Princeton/East Brunswick, NJ	—		—		90.2	%	93.4	%	90.2	%	93.4	%
Richmond, VA	91.3	%	89.2	%	—		—		91.3	%	89.2	%
Greater San Francisco	82.4	%	91.1	%	69.8	%	33.0	%	80.3	%	81.6	%

Total Portfolio	93.2	%	95.7	%	90.7	%	87.4	%	92.3	%	92.7	%

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

Boston Properties, Inc.

Fourth 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
2005	61,274	$	998,431	$	16.29	$	998,431	$	16.29	4.36	%
2006	287,104		4,144,413		14.44		4,158,647		14.48	20.45	%
2007	321,900		5,778,899		17.95		5,999,392		18.64	22.93	%
2008	39,380		812,234		20.63		841,337		21.36	2.81	%
2009	28,702		697,242		24.29		723,227		25.20	2.04	%
2010	132,510		1,740,359		13.13		1,977,471		14.92	9.44	%
2011	137,321		2,456,378		17.89		2,556,378		18.62	9.78	%
2012	72,362		1,626,524		22.48		1,808,089		24.99	5.15	%
2013	—		—		—		—		—	—
2014	274,821		4,792,399		17.44		5,601,834		20.38	19.58	%
Thereafter	—		—		—		—		—	—

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03
Greater Boston	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Greater Washington	—		—		96.1	%	81.9	%	96.1	%	81.9	%
Midtown Manhattan	n/a		n/a		n/a		n/a		n/a		n/a
Baltimore, MD	n/a		n/a		n/a		n/a		n/a		n/a
Princeton/East Brunswick, NJ	n/a		n/a		n/a		n/a		n/a		n/a
Richmond, VA	n/a		n/a		n/a		n/a		n/a		n/a
Greater San Francisco	n/a		—		n/a		100.0	%	n/a		100.0	%

Total Portfolio	100.0	%	100.0	%	97.5	%	89.0	%	97.6	%	89.4	%

Boston Properties, Inc.

Fourth 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
2005	—	$	—	$	—	$	—	$	—	—
2006	—		—		—		—		—	—
2007	—		—		—		—		—	—
2008	—		—		—		—		—	—
2009	—		—		—		—		—	—
2010	—		—		—		—		—	—
2011	—		—		—		—		—	—
2012	—		—		—		—		—	—
2013	—		—		—		—		—	—
2014	—		—		—		—		—	—
Thereafter	—		—		—		—		—	—

Occupancy By Location

CBD

Suburban

Total

Location

31-Dec-04

31-Dec-03

31-Dec-04

31-Dec-03

31-Dec-04

31-Dec-03

Greater Boston

—

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

n/a

—

n/a

100.0

n/a

100.0

Bucks County, PA

n/a

—

n/a

100.0

n/a

100.0

Total Portfolio

—

56.6

Boston Properties, Inc.

Fourth 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
2005	57,995	$	5,378,061	$	92.73	(1)	$	4,973,564	$	85.76	(1)	4.41	%
2006	69,994		3,659,890		52.29	(1)		3,670,615		52.44	(1)	5.32	%
2007	39,570		2,156,521		54.50			2,248,113		56.81		3.01	%
2008	72,032		3,626,144		50.34			3,730,341		51.79		5.47	%
2009	63,737		2,751,083		43.16			3,349,062		52.55		4.84	%
2010	135,043		4,879,913		36.14			5,298,140		39.23		10.26	%
2011	44,169		2,962,026		67.06			3,302,615		74.77		3.36	%
2012	101,697		4,730,355		46.51			5,323,774		52.35		7.73	%
2013	66,472		5,541,773		83.37			6,056,297		91.11		5.05	%
2014	64,181		3,842,207		59.87			4,557,593		71.01		4.88	%
Thereafter	600,998		30,107,605		50.10			36,352,228		60.49		45.67	%

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $55.94 & $55.03 in 2005 and $48.59 & $48.74 in 2006.

Boston Properties, Inc.

Fourth 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
2005	1,643,929	$	62,251,442	$	37.87	$	62,013,997	$	37.72	5.1	%
2006	2,283,641		93,982,501		41.15		94,109,147		41.21	7.0	%
2007	2,432,393		89,724,528		36.89		91,106,851		37.46	7.5	%
2008	1,698,255		71,998,776		42.40		74,042,289		43.60	5.2	%
2009	2,838,412		108,207,125		38.12		115,744,124		40.78	8.8	%
2010	1,933,213		81,164,557		41.98		87,977,232		45.51	6.0	%
2011	2,677,827		113,362,437		42.33		125,517,241		46.87	8.3	%
2012	2,616,101		118,973,619		45.48		128,655,748		49.18	8.1	%
2013	863,077		31,667,601		36.69		35,112,651		40.68	2.7	%
2014	2,208,252		75,453,893		34.17		84,231,691		38.14	6.8	%
Thereafter	8,917,631		423,742,700		47.52		506,206,051		56.76	27.5	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03
Greater Boston	94.0	%	93.8	%	85.9	%	83.5	%	90.2	%	88.9	%
Greater Washington	99.9	%	99.8	%	97.0	%	93.0	%	97.9	%	95.1	%
Midtown Manhattan	96.4	%	99.4	%	—		—		96.4	%	99.4	%
Baltimore, MD	90.9	%	95.1	%	—		—		90.9	%	95.1	%
Princeton/East Brunswick, NJ	—		—		90.2	%	93.4	%	90.2	%	93.4	%
Richmond, VA	91.3	%	89.2	%	—		—		91.3	%	89.2	%
Greater San Francisco	82.4	%	91.1	%	69.8	%	47.0	%	80.3	%	82.4	%
Bucks County, PA	n/a		—		n/a		100.0	%	n/a		100.0	%

Total Portfolio	93.2	%	95.8	%	90.4	%	86.7	%	92.1	%	92.1	%

Boston Properties, Inc.

Fourth 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
2005	704,389	$	28,192,352	$	40.02	$	27,961,954	$	39.70	—	$	—	$	—	$	—	$	—
2006	622,062		20,142,633		32.38		19,730,544		31.72	253,704		3,584,209		14.13		3,584,209		14.13
2007	506,779		19,967,277		39.40		20,066,557		39.60	144,140		2,009,810		13.94		2,208,950		15.33
2008	530,612		16,919,819		31.89		17,127,464		32.28	—		—		—		—		—
2009	1,148,378		40,104,689		34.92		43,257,919		37.67	—		—		—		—		—
2010	293,552		8,974,878		30.57		9,390,827		31.99	—		—		—		—		—
2011	900,091		32,972,458		36.63		37,048,862		41.16	80,000		1,657,900		20.72		1,757,900		21.97
2012	626,362		23,123,285		36.92		24,866,963		39.70	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	—		—		—		—		—
2014	404,553		13,842,516		34.22		14,957,367		36.97	—		—		—		—		—
Thereafter	447,065		16,836,328		37.66		20,662,793		46.22	—		—		—		—		—


	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
2005	—	$	—	$	—	$	—	$	—	26,699	$	3,943,000	$	147.68	$	3,537,400	$	132.49	(1)
2006	—		—		—		—		—	15,963		1,373,094		86.02		1,373,691		86.05	(1)
2007	—		—		—		—		—	4,001		425,276		106.29		430,372		107.57
2008	—		—		—		—		—	5,467		531,451		97.21		519,451		95.02
2009	—		—		—		—		—	9,498		676,617		71.24		1,182,170		124.47
2010	—		—		—		—		—	78,607		2,455,152		31.23		2,531,562		32.21
2011	—		—		—		—		—	14,479		901,806		62.28		942,836		65.12
2012	—		—		—		—		—	52,949		1,808,031		34.15		1,874,905		35.41
2013	—		—		—		—		—	22,259		2,639,250		118.57		2,779,609		124.88
2014	—		—		—		—		—	19,902		1,857,467		93.33		2,118,509		106.45
Thereafter	—		—		—		—		—	423,318		17,238,207		40.72		19,657,870		46.44

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $67.78 & $65.76 in 2005 and $69.8 & $69.84 in 2006.

Boston Properties, Inc.

Fourth Quarter 2004

IN-SERVICE GREATER BOSTON PROPERTIES

Quarterly Lease Expirations - Greater Boston


Year of Lease Expiration	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 2005	62,694	$	1,703,801	$	27.18	$	1,652,241	$	26.35	—	$	—	$	—		$	—	$	—
Q2 2005	170,731		5,568,981		32.62		5,388,003		31.56	—		—		—			—		—
Q3 2005	174,718		9,162,710		52.44		9,162,710		52.44	—		—		—			—		—
Q4 2005	296,246		11,756,861		39.69		11,759,001		39.69	—		—		—			—		—

Total 2005	704,389	$	28,192,352	$	40.02	$	27,961,954	$	39.70	—		—		—			—		—

Q1 2006	31,961	$	1,042,098	$	32.61	$	1,027,842	$	32.16	—	$	—	$	—		$	—	$	—
Q2 2006	91,492		3,817,619		41.73		3,817,619		41.73	—		—		—			—		—
Q3 2006	349,299		10,836,906		31.02		10,836,906		31.02	253,704		3,584,209		14.13			3,584,209		14.13
Q4 2006	149,310		4,446,011		29.78		4,048,178		27.11	—		—		—			—		—

Total 2006	622,062	$	20,142,633	$	32.38	$	19,730,544	$	31.72	253,704		3,584,209		14.13			3,584,209		14.13


Year of Lease Expiration	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 2005	—	$	—	$	—	$	—	$	—	10,006	$	1,499,820	$	149.89		$	1,336,020	$	133.52
Q2 2005	—		—		—		—		—	889		906,301		1,019.46			688,501		774.47
Q3 2005	—		—		—		—		—	2,030		516,792		254.58			492,792		242.75
Q4 2005	—		—		—		—		—	13,774		1,020,087		74.06			1,020,087		74.06

Total 2005	—		—	$	—	$	—	$	—	26,699	$	3,943,000	$	147.68	(1)	$	3,537,400	$	132.49	(1)

Q1 2006	—	$	—	$	—		—	$	—	10,303	$	826,587	$	80.23		$	827,183	$	80.29
Q2 2006	—		—		—		—		—	5,487		305,504		55.68			305,504		55.68
Q3 2006	—		—		—		—		—	—		—		—			—		—
Q4 2006	—		—		—		—		—	173		241,004		1,393.09			241,004		1,393.09

Total 2006	—	$	—	$	—	$	—	$	—	15,963	$	1,373,094	$	86.02	(1)	$	1,373,691	$	86.05	(1)

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $67.78 & $65.76 in 2005 and $69.8 & $69.84 in 2006.

Boston Properties, Inc.

Fourth Quarter 2004

IN-SERVICE GREATER WASHINGTON PROPERTIES

Lease Expirations - Greater Washington


Year of Lease Expiration	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
2005	225,846	$	7,774,776	$	34.43	$	7,828,862	$	34.66	61,274	$	998,431	$	16.29	$	998,431	$	16.29
2006	236,130		7,292,159		30.88		7,524,163		31.86	33,400		560,204		16.77		574,438		17.20
2007	359,632		12,280,973		34.15		12,547,319		34.89	177,760		3,769,088		21.20		3,790,442		21.32
2008	217,842		7,230,642		33.19		7,780,107		35.71	39,380		812,234		20.63		841,337		21.36
2009	870,041		32,511,018		37.37		34,477,880		39.63	28,702		697,242		24.29		723,227		25.20
2010	595,147		23,958,712		40.26		27,107,846		45.55	132,510		1,740,359		13.13		1,977,471		14.92
2011	721,395		23,835,010		33.04		27,551,052		38.19	57,321		798,479		13.93		798,479		13.93
2012	694,077		24,957,535		35.96		29,460,491		42.45	—		—		—		—		—
2013	59,801		1,650,477		27.60		2,005,427		33.54	—		—		—		—		—
2014	497,241		18,250,585		36.70		19,982,622		40.19	274,821		4,792,399		17.44		5,601,834		20.38
Thereafter	1,972,220		67,841,700		34.40		76,949,505		39.02	—		—		—		—		—

Year of Lease Expiration	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
2005	—	$	—	$	—	$	—	$	—	4,002	$	160,790	$	40.18	$	160,790	$	40.18
2006	—		—		—		—		—	11,796		394,783		33.47		398,054		33.74
2007	—		—		—		—		—	12,610		381,298		30.24		395,687		31.38
2008	—		—		—		—		—	18,152		727,225		40.06		758,313		41.78
2009	—		—		—		—		—	23,554		697,654		29.62		759,597		32.25
2010	—		—		—		—		—	17,280		593,740		34.36		679,893		39.35
2011	—		—		—		—		—	11,221		476,187		42.44		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
2014	—		—		—		—		—	12,926		237,617		18.38		292,520		22.63
Thereafter	—		—		—		—		—	22,439		959,335		42.75		1,229,089		54.77

Boston Properties, Inc.

Fourth Quarter 2004

IN-SERVICE GREATER WASHINGTON PROPERTIES

Quarterly Lease Expirations - Greater Washington


Year of Lease Expiration	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 2005	25,261	$	840,054	$	33.25	$	841,356	$	33.31	—	$	—	$	—	$	—	$	—
Q2 2005	57,941		1,649,382		28.47		1,649,382		28.47	—		—		—		—		—
Q3 2005	56,337		2,210,589		39.24		2,210,589		39.24	16,806		251,441		14.96		251,441		14.96
Q4 2005	86,307		3,074,752		35.63		3,127,535		36.24	44,468		746,990		16.80		746,990		16.80

Total 2005	225,846	$	7,774,776	$	34.43	$	7,828,862	$	34.66	61,274	$	998,431	$	16.29	$	998,431	$	16.29

Q1 2006	61,937	$	1,981,365	$	31.99	$	2,083,834	$	33.64	—	$	—	$	—	$	—	$	—
Q2 2006	34,213		1,249,818		36.53		1,277,389		37.34	—		—		—		—		—
Q3 2006	123,619		3,669,022		29.68		3,751,405		30.35	33,400		560,204		16.77		574,438		17.20
Q4 2006	16,361		391,954		23.96		411,536		25.15	—		—		—		—		—

Total 2006	236,130	$	7,292,159	$	30.88	$	7,524,163	$	31.86	33,400	$	560,204	$	16.77	$	574,438	$	17.20


Year of Lease Expiration	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 2005	—	$	—	$	—	$	—	$	—	2,334	$	82,169	$	35.21	$	82,169	$	35.21
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	1,084		52,898		48.80		52,898		48.80
Q4 2005	—		—		—		—		—	584		25,723		44.05		25,723		44.05

Total 2005	—	$	—	$	—		—	$	—	4,002		160,790	$	40.18		160,790	$	40.18

Q1 2006	—	$	—	$	—	$	—	$	—	4,241	$	106,025	$	25.00	$	106,025	$	25.00
Q2 2006	—		—		—		—		—	4,238		172,161		40.62		175,309		41.37
Q3 2006	—		—		—		—		—	3,309		116,557		35.22		116,680		35.26
Q4 2006	—		—		—		—		—	8		40		5.00		40		5.00

Total 2006	—	$	—	$	—	$	—	$	—	11,796	$	394,783	$	33.47		398,054	$	33.74

Boston Properties, Inc.

Fourth Quarter 2004

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Lease Expirations - Greater San Francisco


Year of Lease Expiration	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
2005	241,841	$	8,980,386	$	37.13	$	9,308,827	$	38.49	—	$	—	$	—	$	—	$	—
2006	633,762		32,279,789		50.93		32,469,237		51.23	—		—		—		—		—
2007	437,799		20,836,988		47.59		21,103,046		48.20	—		—		—		—		—
2008	316,676		11,616,507		36.68		12,142,519		38.34	—		—		—		—		—
2009	219,230		10,444,536		47.64		10,578,142		48.25	—		—		—		—		—
2010	228,112		12,624,721		55.34		13,733,699		60.21	—		—		—		—		—
2011	209,360		18,645,583		89.06		18,932,800		90.43	—		—		—		—		—
2012	130,592		5,686,111		43.54		6,092,912		46.66	—		—		—		—		—
2013	113,211		4,032,988		35.62		4,524,884		39.97	—		—		—		—		—
2014	489,608		15,321,970		31.29		17,602,540		35.95	—		—		—		—		—
Thereafter	709,199		27,872,430		39.30		30,098,703		42.44	—		—		—		—		—

Year of Lease Expiration	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
2005	—	$	—	$	—	$	—	$	—	26,883	$	1,219,684	$	45.37	$	1,219,684	$	45.37
2006	—		—		—		—		—	26,660		1,178,102		44.19		1,181,556		44.32
2007	—		—		—		—		—	16,259		1,084,254		66.69		1,156,361		71.12
2008	—		—		—		—		—	39,524		2,016,624		51.02		2,071,645		52.41
2009	—		—		—		—		—	30,685		1,376,811		44.87		1,407,295		45.86
2010	—		—		—		—		—	34,126		1,468,303		43.03		1,663,967		48.76
2011	—		—		—		—		—	3,474		177,195		51.01		227,915		65.61
2012	—		—		—		—		—	35,590		2,122,533		59.64		2,434,523		68.40
2013	—		—		—		—		—	8,408		586,795		69.79		636,805		75.74
2014	—		—		—		—		—	19,409		658,516		33.93		760,531		39.18
Thereafter	—		—		—		—		—	18,692		897,347		48.01		1,321,735		70.71

Boston Properties, Inc.

Fourth Quarter 2004

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Quarterly Lease Expirations - Greater San Francisco


Year of Lease Expiration	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 2005	68,557	$	2,523,070	$	36.80	$	2,523,070	$	36.80	—	$	—	$	—	$	—	$	—
Q2 2005	86,235		2,528,457		29.32		2,855,308		33.11	—		—		—		—		—
Q3 2005	55,278		2,748,485		49.72		2,748,485		49.72	—		—		—		—		—
Q4 2005	31,771		1,180,373		37.15		1,181,963		37.20	—		—		—		—		—

Total 2005	241,841	$	8,980,386	$	37.13	$	9,308,827	$	38.49	—		—		—		—		—

Q1 2006	157,036	$	6,338,774	$	40.37	$	6,448,293	$	41.06	—	$	—	$	—	$	—	$	—
Q2 2006	179,460		11,016,710		61.39		11,053,725		61.59	—		—		—		—		—
Q3 2006	107,608		5,181,438		48.15		5,215,350		48.47	—		—		—		—		—
Q4 2006	189,658		9,742,868		51.37		9,751,868		51.42	—		—		—		—		—

Total 2006	633,762	$	32,279,789	$	50.93	$	32,469,237	$	51.23	—		—		—		—		—


Year of Lease Expiration	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 2005	—	$	—	$	—	$	—	$	—	7,479	$	276,090	$	36.92	$	276,090	$	36.92
Q2 2005	—		—		—		—		—	3,260		198,339		60.84		198,339		60.84
Q3 2005	—		—		—		—		—	13,458		600,395		44.61		600,395		44.61
Q4 2005	—		—		—		—		—	2,686		144,860		53.93		144,860		53.93

Total 2005	—	$	—	$	—	$	—	$	—	26,883	$	1,219,684	$	45.37	$	1,219,684	$	45.37

Q1 2006	—	$	—	$	—	$	—	$	—	4,596	$	467,015	$	101.61	$	467,015		101.61
Q2 2006	—		—		—		—		—	987		59,769		60.56		59,769		60.56
Q3 2006	—		—		—		—		—	809		95,585		118.15		99,039		122.42
Q4 2006	—		—		—		—		—	20,268		555,733		27.42		555,733		27.42

Total 2006	—		—		—		—		—	26,660	$	1,178,102	$	44.19	$	1,181,556	$	44.32

Boston Properties, Inc.

Fourth 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
2005	4,106	$217,618	$	53.00	$	217,618	$	53.00	—	$	—	$	—	$	—	$	—
2006	318,722	22,691,046		71.19		22,725,389		71.30	—		—		—		—		—
2007	150,245	9,562,635		63.65		9,574,330		63.72	—		—		—		—		—
2008	504,732	31,382,982		62.18		31,949,678		63.30	—		—		—		—		—
2009	176,935	11,841,191		66.92		12,632,564		71.40	—		—		—		—		—
2010	310,350	21,366,885		68.85		22,287,855		71.82	—		—		—		—		—
2011	395,574	23,892,064		60.40		26,931,822		68.08	—		—		—		—		—
2012	935,649	57,104,021		61.03		59,030,696		63.09	—		—		—		—		—
2013	—	—		—		—		—	—		—		—		—		—
2014	193,274	11,196,652		57.93		12,083,129		62.52	—		—		—		—		—
Thereafter	4,307,769	258,383,149		59.98		314,129,325		72.92	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	411	$	54,588	$	132.82	$	55,691	$	135.50
2006	—		—		—		—		—	15,575		713,911		45.84		717,314		46.06
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	3,232		166,653		51.56		170,430		52.73
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	5,030		362,718		72.11		422,718		84.04
2011	—		—		—		—		—	14,995		1,406,837		93.82		1,599,902		106.70
2012	—		—		—		—		—	5,639		639,016		113.32		824,067		146.14
2013	—		—		—		—		—	15,896		1,474,896		92.78		1,649,603		103.77
2014	—		—		—		—		—	11,944		1,088,608		91.14		1,386,032		116.04
Thereafter	—		—		—		—		—	121,967		10,664,064		87.43		13,796,878		113.12

Boston Properties, Inc.

Fourth 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 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	4,106		217,618		53.00		217,618		53.00	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	4,106	$	217,618	$	53.00	$	217,618	$	53.00	—		—		—		—		—

Q1 2006	30,010	$	2,146,554	$	71.53	$	2,146,554	$	71.53	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	30,100		1,987,976		66.05		1,987,976		66.05	—		—		—		—		—
Q4 2006	258,612		18,556,516		71.75		18,590,859		71.89	—		—		—		—		—

Total 2006	318,722	$	22,691,046	$	71.19	$	22,725,389	$	71.30	—		—		—		—		—


	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 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	411		54,588		132.82		55,691		135.50

Total 2005	—	$	—	$	—	$	—	$	—	411	$	54,588	$	132.82	$	55,691	$	135.50

Q1 2006	—	$	—	$	—		—	$	—	—	$	—	$	—	$	—		—
Q2 2006	—		—		—		—		—	350		25,700		73.43		25,700	$	73.43
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	—		—		—		—		—	15,225		688,211		45.20		691,614		45.43

Total 2006	—	$	—	$	—	$	—	$	—	15,575	$	713,911	$	45.84	$	717,314	$	46.06

Boston Properties, Inc.

Fourth 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
2005	284,655	$	9,141,326	$	32.11	$	9,141,291	$	32.11	—	$	—	$	—	$	—	$	—
2006	76,829		2,704,678		35.20		2,731,645		35.55	—		—		—		—		—
2007	522,267		15,984,378		30.61		16,466,261		31.53	—		—		—		—		—
2008	748		25,033		33.47		23,911		31.97	—		—		—		—		—
2009	252,520		7,820,292		30.97		8,639,384		34.21	—		—		—		—		—
2010	175,680		5,933,592		33.77		6,248,056		35.56	—		—		—		—		—
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	96,715		3,026,990		31.30		3,338,823		34.52	—		—		—		—		—
2014	284,574		8,207,563		28.84		9,446,606		33.20	—		—		—		—		—
Thereafter	119,034		2,907,302		24.42		4,209,978		35.37	—		—		—		—		—


	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
2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	—		—		—		—		—

Boston Properties, Inc.

Fourth 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 2005	91,073	$	3,001,875	$	32.96	$	3,001,841	$	32.96	—	$	—	$	—	$	—	$	—
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	49,403		1,735,439		35.13		1,735,439		35.13	—		—		—		—		—

Total 2005	284,655	$	9,141,326	$	32.11	$	9,141,291	$	32.11	—		—		—		—		—

Q1 2006	8,277	$	284,812	$	34.41	$	293,089	$	35.41	—	$	—	$	—	$	—	$	—
Q2 2006	28,238		1,036,841		36.72		1,039,273		36.80	—		—		—		—		—
Q3 2006	4,251		165,305		38.89		165,305		38.89	—		—		—		—		—
Q4 2006	36,063		1,217,720		33.77		1,233,978		34.22	—		—		—		—		—

Total 2006	76,829	$	2,704,678	$	35.20	$	2,731,645	$	35.55	—		—		—		—		—


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

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

Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	—		—		—		—		—	—		—		—		—		—

Total 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—

Boston Properties, Inc.

Fourth 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
2005	63,823	$	1,568,493	$	24.58	$	1,583,450	$	24.81	—	$	—	$	—	$	—	$	—
2006	39,038		1,067,892		27.36		1,098,908		28.15	—		—		—		—		—
2007	94,201		3,156,858		33.51		3,101,834		32.93	—		—		—		—		—
2008	16,233		385,415		23.74		446,931		27.53	—		—		—		—		—
2009	78,869		2,037,075		25.83		2,085,944		26.45	—		—		—		—		—
2010	62,819		1,685,497		26.83		1,933,338		30.78	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	49,862		1,562,876		31.34		1,880,286		37.71	—		—		—		—		—
2013	286,408		6,605,053		23.06		7,401,267		25.84	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	761,346		19,794,186		26.00		23,803,520		31.27	—		—		—		—		—

	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
2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	6,700		265,693		39.66		265,693		39.66
2008	—		—		—		—		—	5,657		184,191		32.56		210,503		37.21
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	6,532		249,546		38.20		266,818		40.85
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	14,582		348,652		23.91		346,656		23.77

Boston Properties, Inc.

Fourth 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 2005	3,480	$	79,605	$	22.87	$	79,605	$	22.87	—	$	—	$	—	$	—	$	—
Q2 2005	15,627		412,859		26.42		416,028		26.62	—		—		—		—		—
Q3 2005	4,101		113,888		27.77		113,888		27.77	—		—		—		—		—
Q4 2005	40,615		962,141		23.69		973,929		23.98	—		—		—		—		—

Total 2005	63,823	$	1,568,493	$	24.58	$	1,583,450	$	24.81	—	$	—	$	—	$	—	$	—

Q1 2006	8,739	$	281,874	$	32.25	$	289,511	$	33.13	—	$	—	$	—	$	—	$	—
Q2 2006	15,307		396,226		25.89		404,013		26.39	—		—		—		—		—
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	14,992		389,792		26.00		405,384		27.04	—		—		—		—		—

Total 2006	39,038	$	1,067,892	$	27.36	$	1,098,908	$	28.15	—	$	—	$	—	$	—	$	—


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

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

Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	—		—		—		—		—	—		—		—		—		—

Total 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—

Boston Properties, Inc.

Fourth 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
2005	435,143	(1)	$	23,557,651	$	54.14	(1)	$	22,971,073	$	52.79	(1)	71,508	$	2,861,315	$	40.01	$	2,873,628	$	40.19
2006	132,979	(2)	$	6,332,129		47.62	(2)	$	6,315,147		47.49	(2)	32,596	$	1,207,282	$	37.04	$	1,227,391	$	37.65
2007	175,363		$	9,295,179		53.01		$	9,212,556		52.53		275,734	$	9,574,237	$	34.72	$	9,671,199	$	35.07
2008	182,072		$	6,990,691		38.40		$	6,868,094		37.72		40,973	$	1,642,221	$	40.08	$	1,751,224	$	42.74
2009	758,833		$	27,569,547		36.33		$	30,427,026		40.10		836,126	$	32,046,594	$	38.33	$	33,947,752	$	40.60
2010	192,924		$	6,969,370		36.12		$	7,307,589		37.88		434,403	$	17,924,369	$	41.26	$	20,226,757	$	46.56
2011	450,829		$	23,053,369		51.14		$	25,995,801		57.66		196,512	$	8,266,121	$	42.06	$	9,453,651	$	48.11
2012	309,025		$	13,648,608		44.17		$	14,558,002		47.11		83,235	$	3,262,875	$	39.20	$	3,278,722	$	39.39
2013	262,729		$	13,449,570		51.19		$	14,565,562		55.44		1,702	$	90,126	$	52.95	$	110,555	$	64.96
2014	389,981		$	14,902,289		38.21		$	16,169,118		41.46		55,969	$	2,744,855	$	49.04	$	3,426,557	$	61.22
Thereafter	661,508		$	27,041,873		40.88		$	30,861,970		46.65		457,426	$	21,116,928	$	46.16	$	25,629,485	$	56.03

	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
2005	4,517		$	272,206	$	60.26		$	273,309	$	60.51		154,590	$	6,904,269	$	44.66	$	7,232,710	$	46.79
2006	334,297			23,404,957		70.01			23,442,702		70.13		623,853		31,200,523		50.01		31,248,688		50.09
2007	150,245			9,562,635		63.65			9,574,330		63.72		443,156		21,637,472		48.83		21,963,778		49.56
2008	507,964			31,549,635		62.11			32,120,108		63.23		280,994		11,777,375		41.91		12,289,308		43.74
2009	176,935			11,841,191		66.92			12,632,564		71.40		239,175		11,498,003		48.07		11,630,134		48.63
2010	315,380			21,729,603		68.90			22,710,573		72.01		252,243		13,871,696		54.99		15,113,803		59.92
2011	410,569			25,298,901		61.62			28,531,724		69.49		212,834		18,822,778		88.44		19,160,715		90.03
2012	941,288			57,743,037		61.34			59,854,763		63.59		166,182		7,808,644		46.99		8,527,435		51.31
2013	15,896			1,474,896		92.78			1,649,603		103.77		121,619		4,619,782		37.99		5,161,690		42.44
2014	205,218			12,285,260		59.86			13,469,162		65.63		252,715		8,622,515		34.12		9,744,094		38.56
Thereafter	4,429,736			269,047,213		60.74			327,926,203		74.03		612,486		25,664,649		41.90		27,398,808		44.73

	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
2005	—		$	—	$	—		$	—	$	—		63,823	$	1,568,493	$	24.58	$	1,583,450	$	24.81
2006	—			—		—			—		—		39,038		1,067,892		27.36		1,098,908		28.15
2007	—			—		—			—		—		100,901		3,422,551		33.92		3,367,526		33.37
2008	—			—		—			—		—		21,890		569,606		26.02		657,434		30.03
2009	—			—		—			—		—		78,869		2,037,075		25.83		2,085,944		26.45
2010	—			—		—			—		—		62,819		1,685,497		26.83		1,933,338		30.78
2011	—			—		—			—		—		—		—		—		—		—
2012	—			—		—			—		—		49,862		1,562,876		31.34		1,880,286		37.71
2013	—			—		—			—		—		292,940		6,854,599		23.40		7,668,085		26.18
2014	—			—		—			—		—		—		—		—		—		—
Thereafter	—			—		—			—		—		775,928		20,142,838		25.96		24,150,176		31.12

(1)	Includes 26,668 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $48.02 and rent on expiring leases with future step-up is $47.58 per square foot in 2005.

(1)	Includes 15,960 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $42.38 and rent on expiring leases with future step-up is $42.23 per square foot in 2006.

Boston Properties, Inc.

Fourth 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
2005	295,945	$	8,577,701	$	28.98	$	8,528,281	$	28.82	219,614	$	6,072,681	$	27.65	$	6,114,455	$	27.84
2006	758,750		18,767,807		24.74		18,373,297		24.22	248,730		7,039,865		28.30		7,269,264		29.23
2007	479,557		13,107,185		27.33		13,493,322		28.14	274,268		6,857,123		25.00		7,062,249		25.75
2008	354,007		10,460,579		29.55		10,778,820		30.45	234,401		7,127,881		30.41		7,628,532		32.54
2009	399,043		13,211,760		33.11		14,013,063		35.12	86,171		1,859,320		21.58		2,012,953		23.36
2010	179,235		4,460,660		24.89		4,614,800		25.75	310,534		8,368,443		26.95		9,538,453		30.72
2011	543,741		12,478,796		22.95		13,753,797		25.29	593,425		16,843,555		28.38		19,427,841		32.74
2012	442,648		12,909,231		29.16		13,991,955		31.61	618,361		21,855,435		35.34		26,372,047		42.65
2013	—		—		—		—		—	71,476		2,151,638		30.10		2,618,333		36.63
2014	34,474		797,695		23.14		906,759		26.30	729,019		20,535,746		28.17		22,450,419		30.80
Thereafter	208,875		7,032,662		33.67		9,458,693		45.28	1,537,233		47,684,107		31.02		52,549,109		34.18

	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
2005	—	$	—	$	—	$	—	$	—	114,134	$	3,295,801	$	28.88	$	3,295,801	$	28.88
2006	—		—		—		—		—	36,569		2,257,368		61.73		2,402,104		65.69
2007	—		—		—		—		—	10,902		283,770		26.03		295,629		27.12
2008	—		—		—		—		—	75,206		1,855,755		24.68		1,924,856		25.59
2009	—		—		—		—		—	10,740		323,344		30.11		355,303		33.08
2010	—		—		—		—		—	9,995		221,328		22.14		283,863		28.40
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	256,302		7,357,972		28.71		8,618,977		33.63
Thereafter	—		—		—		—		—	115,405		3,105,128		26.91		4,021,630		34.85

	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
2005	284,655	$	9,141,326	$	32.11	$	9,141,291	$	32.11	—	$	—	$	—	$	—	$	—
2006	76,829		2,704,678		35.20		2,731,645		35.55	—		—		—		—		—
2007	522,267		15,984,378		30.61		16,466,261		31.53	—		—		—		—		—
2008	748		25,033		33.47		23,911		31.97	—		—		—		—		—
2009	252,520		7,820,292		30.97		8,639,384		34.21	—		—		—		—		—
2010	175,680		5,933,592		33.77		6,248,056		35.56	—		—		—		—		—
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	96,715		3,026,990		31.30		3,338,823		34.52	—		—		—		—		—
2014	284,574		8,207,563		28.84		9,446,606		33.20	—		—		—		—		—
Thereafter	119,034		2,907,302		24.42		4,209,978		35.37	—		—		—		—		—

Boston Properties, Inc.

Fourth Quarter 2004

HOTEL PERFORMANCE

Long Wharf Marriott - Boston


	Fourth Quarter 2004			Fourth Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		78.2	%		77.0	%	1.6	%		83.4	%		80.1	%	4.1	%
Average Daily Rate	$	224.38		$	208.94		7.4	%	$	209.64		$	199.32		5.2	%
Revenue per available room	$	175.47		$	160.88		9.1	%	$	174.74		$	159.60		9.5	%

Cambridge Center Marriott


	Fourth Quarter 2004			Fourth Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		71.6	%		69.7	%	2.7	%		76.8	%		72.9	%	5.3	%
Average Daily Rate	$	175.93		$	170.87		3.0	%	$	162.82		$	157.55		3.3	%
Revenue per available room	$	125.96		$	119.01		5.8	%	$	125.06		$	114.79		8.9	%

Residence Inn by Marriott


	Fourth Quarter 2004			Fourth Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		81.2	%		81.8	%	-0.7	%		83.1	%		80.8	%	2.8	%
Average Daily Rate	$	144.92		$	120.51		20.3	%	$	137.27		$	123.76		10.9	%
Revenue per available room	$	117.68		$	98.61		19.3	%	$	114.01		$	100.00		14.0	%

Total Hotel Performance


	Fourth Quarter 2004			Fourth Quarter 2003			Percent Change		Year to Date 2004			Year to Date 2003			Percent Change
Occupancy		76.1	%		75.0	%	1.5	%		80.6	%		77.3	%	4.3	%
Average Daily Rate	$	187.91		$	174.83		7.5	%	$	175.32		$	166.40		5.4	%
Revenue per available room	$	143.11		$	130.70		9.5	%	$	141.69		$	128.78		10.0	%

Boston Properties, Inc.

Fourth Quarter 2004

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾ - By Location


	CBD				Suburban				Total
Location	31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03
Greater Boston	94.0	%	93.8	%	85.9	%	83.9	%	90.2	%	89.1	%
Greater Washington	100.0	%	99.7	%	96.8	%	94.0	%	97.6	%	95.5	%
Midtown Manhattan	98.7	%	99.4	%	—		—		98.7	%	99.4	%
Baltimore, MD	90.9	%	95.1	%	—		—		90.9	%	95.1	%
Princeton/East Brunswick, NJ	—		—		90.2	%	93.4	%	90.2	%	93.4	%
Richmond, VA	91.3	%	89.2	%	—		—		91.3	%	89.2	%
Greater San Francisco	82.4	%	91.1	%	69.8	%	33.0	%	80.3	%	81.6	%

Total Portfolio	93.4	%	95.6	%	90.1	%	86.6	%	92.1	%	92.0	%

Same Property Occupancy⁽¹⁾- By Type of Property


	CBD				Suburban				Total
	31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03		31-Dec-04		31-Dec-03
Total Office Portfolio	93.4	%	95.6	%	90.5	%	87.4	%	92.4	%	92.6	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	91.4	%	97.6	%	91.8	%
Total Industrial Portfolio	—		—		0.0	%	0.0	%	0.0	%	0.0	%

Total Portfolio	93.4	%	95.6	%	90.1	%	86.6	%	92.1	%	92.0	%

(1)	For disclosures related to our definition of Same Property, see page 54.

Boston Properties, Inc.

Fourth Quarter 2004

SAME PROPERTY PERFORMANCE

Office, Office/Technical, Industrial and Hotel Properties


	Office		Office/Technical		Industrial		Hotel (1)		Total
Number of Properties	96		17		1		3		117
Square feet	28,495,600		1,403,789		152,009		937,874		30,989,272
Percent of in-service properties	92.3	%	100.0	%	100.0	%	100.0	%	92.9	%
Occupancy @ 12/31/03	92.6	%	91.8	%	0.0	%	—		92.0	%
Occupancy @ 12/31/04	92.4	%	97.6	%	0.0	%	—		92.1	%
Percent change from 4th quarter 2004 over 4th quarter 2003 (2):
Rental revenue	0.7	%	9.1	%	See Note 4		9.7	%	1.5	%
Operating expenses and real estate taxes	5.1	%	-2.6	%	See Note 4		6.1	%	5.2	%
Net Operating Income (3)	-1.4	%	12.4	%	See Note 4		19.3	%	-0.5	%
Net Operating Income (3) - without hotels									-1.1	%

Rental revenue - cash basis	2.6	%	9.7	%	See Note 4		9.7	%	3.2	%
Net Operating Income (3) - cash basis (4)	1.2	%	13.1	%	See Note 4		19.3	%	2.0	%
Net Operating Income (3) - cash basis(4) - without hotels									1.5	%

Same Property Lease Analysis - quarter ended December 31, 2004


	Office			Office/Technical			Industrial		Total
Vacant space available @ 10/1/04 (sf)		2,265,382			—			152,009		2,417,391
Square footage of leases expiring or terminated 10/1/04-12/31/04		1,220,118			44,468			—		1,264,586

Total space for lease (sf)		3,485,500			44,468			152,009		3,681,977

New tenants (sf)		532,101			—			—		532,101
Renewals (sf)		740,170			44,468			—		784,638

Total space leased (sf)		1,272,271			44,468			—		1,316,739

Space available @ 12/31/04 (sf)		2,213,229			—			152,009		2,365,238

Net (increase)/decrease in available space (sf)		52,153			—			—		52,153
Average lease term (months)		98			12			—		95
2nd generation TI/Comm PSF	$	30.50		$	0.47		$	—	$	29.33
Increase (decrease) in 2nd generation gross rents (5)		-9.68	%		1.95	%		—		-9.45	%
Increase (decrease) in 2nd generation net rents (5)		-16.22	%		1.14	%		—		-15.81	%

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

(2)	See page 47 for a quantitative reconciliation.

(3)	For a quantitative reconciliation of Net Operating Income (NOI) to net income in accordance with GAAP, see page 47. For disclosures relating to our use of NOI, see page 54.

(4)	For a quantitative reconciliation of NOI to NOI on a cash basis, see page 48. For disclosures relating to our use of NOI, see page 54.

(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 1,068,893 square feet.

Boston Properties, Inc.

Fourth Quarter 2004

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	12/31/2004			12/31/2003
	*(in thousands)*
Net income available to common shareholders	$	62,254		$	60,592
Gains on sales of real estate from discontinued operations, net of minority interest		(1,087	)		—
Income from discontinued operations, net of minority interest		(19	)		(1,149	)
Gains on sales of real estate and other assets, net of minority interest		—			—
Minority interest in Operating Partnership		16,000			18,676
Income from unconsolidated joint ventures		(664	)		(662	)
Minority interest in property partnerships		(1,558	)		(370	)

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		74,926			77,087
Add:
Depreciation and amortization		68,735			55,824
Interest		79,378			75,001
General and administrative		15,541			11,749

Subtract:
Interest and other		(841	)		(866	)
Development and management services		(5,338	)		(4,550	)

Consolidated Net Operating Income	$	232,401		$	214,245

Same Property Net Operating Income	$	208,154		$	209,283

Net operating income from non Same Properties (1)		23,613			3,736
Termination income		634			1,226

Consolidated Net Operating Income	$	232,401		$	214,245

Same Property Net Operating Income	$	208,154		$	209,283
Less Straight Line Rent		8,653			13,768

Same Property Net Operating Income - cash basis	$	199,501		$	195,515

(1)

See pages 20-23 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Fourth Quarter 2004

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical									Industrial
	For the three months ended				$ Change			% Change		For the three months ended				$ Change			% Change		For the three months ended						$ Change			% Change
	31-Dec-04		31-Dec-03		$ Change			% Change		31-Dec-04		31-Dec-03		$ Change			% Change		31-Dec-04			31-Dec-03			$ Change			% Change
Rental Revenue	$	298,180	$	296,659						$	5,755	$	5,274						$	2		$	15
Less Termination Income		634		1,226							—		—							—			—

Rental revenue - subtotal		297,546		295,433		2,113		0.7	%		5,755		5,274		481		9.1	%		2			15			(13	)	-86.7	%
Operating expenses and real estate taxes		101,183		96,293		4,890		5.1	%		1,125		1,155		(30	)	-2.6	%		109			84			25		29.8	%

Net Operating Income (1)	$	196,363	$	199,140	$	(2,777	)	-1.4	%	$	4,630	$	4,119	$	511		12.4	%	$	(107	)	$	(69	)	$	(38	)	-55.1	%

Rental revenue - subtotal	$	297,546	$	295,433						$	5,755	$	5,274						$	2		$	15
Less Straight Line Rent		8,633		13,724		(5,091	)				17		41		(24	)				—			—			—

Rental revenue - cash basis		288,913		281,709		7,204		2.6	%		5,738		5,233		505		9.7	%		2			15			(13	)	-86.7	%
Less:
Operating expenses and real estate taxes		101,183		96,293		4,890		5.1	%		1,125		1,155		(30	)	-2.6	%		109			84			25		29.8	%

Net Operating Income (2) - cash basis	$	187,730	$	185,416	$	2,314		1.2	%	$	4,613	$	4,078	$	535		13.1	%	$	(107	)	$	(69	)	$	(38	)	55.1	%


	Hotel								Total
	For the three months ended				$ Change		% Change		For the three months ended				$ Change			% Change
	31-Dec-04		31-Dec-03		$ Change		% Change		31-Dec-04		31-Dec-03		$ Change			% Change
Rental Revenue	$	24,230	$	22,086					$	328,167	$	324,034
Less Termination Income		—		—						634		1,226

Rental revenue - subtotal		24,230		22,086	$	2,144	9.7	%		327,533		322,808		4,725		1.5	%
Operating expenses and real estate taxes		16,962		15,993		969	6.1	%		119,379		113,525		5,854		5.2	%

Net Operating Income (1)	$	7,268	$	6,093	$	1,175	19.3	%	$	208,154	$	209,283	$	(1,129	)	-0.5	%

Rental revenue - subtotal	$	24,230	$	22,086					$	327,533	$	322,808
Less Straight Line Rent		3		3		—				8,653		13,768		(5,115	)

Rental revenue - cash basis		24,227		22,083		2,144	9.7	%		318,880		309,040		9,840		3.2	%
Less:
Operating expenses and real estate taxes		16,962		15,993		969	6.1	%		119,379		113,525		5,854		5.2	%

Net Operating Income (2) - cash basis	$	7,265	$	6,090	$	1,175	19.3	%	$	199,501	$	195,515	$	3,986		2.0	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income in accordance with GAAP, see page 47. For disclosures relating to our use of NOI see page 54.

(2)	For a quantitative reconciliation of NOI to NOI on a cash basis see page 46. For disclosures relating to our use of NOI see page 54.

Boston Properties, Inc.

Fourth Quarter 2004

LEASING ACTIVITY

All In-Service Properties - quarter ended December 31, 2004


	Office			Office/Technical		Industrial			Total
Vacant space available @ 10/1/2004 (sf)		2,506,166			—		152,009			2,658,175
Property dispositions/ assets taken out of service (sf)		—			—		(40,000	)		(40,000	)
Property acquisitions/ assets placed in-service (sf)		—			—		—			—
Leases expiring or terminated 10/1/04-12/31/04(sf)		1,220,058			44,468		40,000			1,304,526

Total space for lease (sf)		3,726,224			44,468		152,009			3,922,701

New tenants (sf)		581,767			—		—			581,767
Renewals (sf)		740,170			44,468		—			784,638

Total space leased (sf)		1,321,937			44,468		—			1,366,405	(1)

Space available @ 12/31/04 (sf)		2,404,287			—		152,009			2,556,296

Net (increase)/decrease in available space (sf)		101,879			—		—			101,879
Average lease term (months)		98			12		—			95
2nd generation TI/Comm PSF	$	30.50		$	0.47	$	—		$	29.33
Increase (decrease) in 2nd generation gross rents (2)		-9.68	%		1.95		—			-9.45	%
Increase (decrease) in 2nd generation net rents (3)		-16.22	%		1.14		—			-15.81	%

(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 1,068,893.

(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 1,068,893.


	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	64,570	266,040	-17.07	%	-28.61	%	330,610
Washington	—	497,398	-1.33	%	-7.52	%	497,398
New York	49,666	25,932	-5.98	%	-10.57	%	75,598
San Francisco	111,273	182,649	-22.66	%	-31.54	%	293,922
Princeton	—	168,877	-2.61	%	-2.62	%	168,877

	225,509	1,140,896	-9.45	%	-15.81	%	1,366,405

Boston Properties, Inc.

Fourth Quarter 2004

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q4 2004		Q3 2004		Q2 2004		Q1 2004		2003		2002
Recurring capital expenditures	$	10,921	$	6,831	$	4,138	$	3,211	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		3,102		482		981		324		4,464		31,908
Hotel improvements, equipment upgrades and replacements		262		238		228		273		2,345		3,218

	$	14,285	$	7,551	$	5,347	$	3,808	$	25,323	$	51,800

2nd Generation Tenant Improvements and Leasing Commissions

(in thousands, except per share amounts)


	Q4 2004		Q3 2004		Q2 2004		Q1 2004		2003		2002
Office
Square feet		1,096,428		1,085,529		679,980		494,330		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	30.50	$	18.04	$	24.99	$	26.33	$	14.41	$	20.17

Office/Technical
Square feet		44,468		—		70,059		81,426		169,893		347,321

Tenant improvement and lease commissions PSF	$	0.47	$	—	$	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	$	29.33	$	18.04	$	23.59	$	26.23	$	13.93	$	16.01

Boston Properties, Inc.

Fourth Quarter 2004

ACQUISITIONS/DISPOSITIONS

as of December 31, 2004

ACQUISITIONS

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


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment		Total Investment		Percentage Leased
140 Kendrick Street (remaining 75% interest)	Mar-04	380,987	$	21,552,000	$	—	$	21,552,000	100	%
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 December 31, 2004


Property	Date Disposed	Square Feet	Gross Sales Price		Book Gain
430 Rozzi Place (1)	Jan-04	20,000	$	2,460,000	$	2,172,000
Hilltop Office Center (1)	Feb-04	142,866		18,000,000		15,494,000
Sugarland Business Park, Building Two	Feb-04	59,215		7,131,000		2,414,000
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
560 Forbes Boulevard (1)	Dec-04	40,000		4,000,000		3,786,000

Total Dispositions		767,478	$	116,541,000	$	54,123,000

(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.

Fourth Quarter 2004

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of December 31, 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 December 31, 2004		Estimated Future Equity Requirement		Percentage Leased (3)
901 New York Avenue (25% ownership)	Q3 2004	Q1 2005	Washington, D.C.	1	539,038		38,756,943		44,777,000		42,500,000		42,500,000		6,020,057	88	%
Seven Cambridge Center	Q1 2006	Q1 2006	Cambridge, MA	1	231,028		23,029,317		145,933,861		—		—		122,904,544	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,000		6,540,841		45,754,416		—		—		39,213,575	100	%
Capital Gallery expansion	Q1 2006	Q3 2007	Washington, D.C.	—	318,557		4,389,011		69,100,000		—		—		64,710,989	7	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		4,215,063		26,011,485		—		—		21,796,422	N/A

Total Development Properties				3	1,270,623	$	76,931,175	$	331,576,762	$	42,500,000	$	42,500,000	$	254,645,587	72	%

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 December 31, 2004		Estimated Future Equity Requirement		Percentage Leased
New Dominion Tech, Building Two	Q3 2004	Q3 2004	Herndon, VA	1	257,400	$	58,173,629	$	67,589,000	$	63,000,000	$	63,000,000	$	—	100	%
Times Square Tower	Q2 2004	Q2 2005	New York, NY	1	1,234,272		589,806,280		653,500,000		475,000,000		423,790,206		—	86	%

Total Developments Placed in Service				2	1,491,672		647,979,909		721,089,000		538,000,000		486,790,206		—	88	%

(1)	In accordance with 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 January 25, 2005

Boston Properties, Inc.

Fourth Quarter 2004

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of December 31, 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 December 31, 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 $125,000 per annum non-refundable 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.

Fourth 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.

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.

FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO 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 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 20-23 for “in-service properties” which are not included in “same properties.”

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

Press Release

Exhibit 99.2









AT THE COMPANY				AT FINANCIAL RELATIONS BOARD
Michael Walsh,				Marilynn Meek – General Info.
Vice President, Finance				(212) 827-3773
(617) 236-3410

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

BOSTON PROPERTIES, INC. ANNOUNCES

FOURTH QUARTER 2004 RESULTS


Reports diluted FFO per share of $1.05		Reports diluted EPS of $0.56

BOSTON, MA, January 25, 2005 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the fourth quarter ended December 31, 2004.

Results for the quarter ended December 31, 2004

Funds from Operations (FFO) for the quarter ended December 31, 2004 were $118.9 million, or $1.09 per share basic and $1.05 per share diluted. This compares to FFO for the quarter ended December 31, 2003 of $106.9 million, or $1.09 per share basic and $1.05 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 109,358,601 and 117,268,572, respectively, for the quarter ended December 31, 2004 and 97,944,897 and 107,187,540, respectively, for the same quarter last year.

Net income available to common shareholders was $62.3 million for the three months ended December 31, 2004, compared to $60.6 million for the same quarter last year. Net income available to common shareholders per share (EPS) for the quarter ended December 31, 2004 was $0.57 basic and $0.56 on a diluted basis. This compares to EPS for the fourth quarter of 2003 of $0.62 basic and $0.61 on a diluted basis.

Results for the year ended December 31, 2004

Funds from Operations (FFO) for the year ended December 31, 2004 were $459.5 million, or $4.32 per share basic and $4.16 per share diluted. This compares to FFO for the year ended December 31, 2003 of $412.1 million, or $4.25 per share basic and $4.09 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 106,458,214 and 114,815,522, respectively, for the year ended December 31, 2004 and 96,899,873 and 106,861,317, respectively, for last year.

Net income available to common shareholders was $284.0 million for the year ended December 31, 2004, compared to $365.3 million for last year. Net income available to common shareholders per share (EPS) for the year ended December 31, 2004 was $2.67 basic and $2.61 on a diluted basis. This compares to EPS for the year ended December 31, 2003 of $3.71 basic and $3.65 on a diluted basis. Diluted EPS includes $0.34 and $1.39 related to gains on sales of real estate and discontinued operations for the years ended December 31, 2004 and 2003, respectively.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter and year ended December 31, 2004. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of December 31, 2004, the Company’s portfolio consisted of 125 properties comprising approximately 44.1 million square feet, including three properties under construction and one expansion project totaling 1.3 million square feet. The overall percentage of leased space for the 119 properties in service as of December 31, 2004 was 92.1%.

Significant events of the fourth quarter include:

•

On October 25, 2004, the Company formed Boston Properties Office Value-Added Fund, L.P. (the “Value-Added Fund”), which is a strategic partnership with two institutional investors, 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 Value-Added Fund has total equity commitments of $140 million, of which the Company has committed $35 million. Assuming an estimated 65% leverage ratio, the Value-Added Fund is anticipated to have up to $400 million of total investments. 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 November 1, 2004, the Value-Added Fund completed the acquisition of Worldgate Plaza, a 322,000 square foot office complex located in Herndon, Virginia for a purchase price of approximately $78.2 million. The acquisition was financed with new mortgage indebtedness totaling $57.0 million and approximately $21.2 million in cash, of which the Company’s share was $5.3 million. The mortgage financing bears interest at a variable rate equal to LIBOR plus 0.89% per annum and matures in October 2007, with two one-year extension options. Properties held by the Value-Added Fund ae not included in the Company’s portfolio statistics.

•

On November 8, 2004, a joint venture, of which the Company owned a 33.33% interest, exercised its right to terminate the purchase agreement to acquire the 21-acre site on the Boston waterfront known as Fan Pier. The venture forfeited its $2.5 million deposit, of which the Company’s share was $0.8 million. The Company recognized approximately $1.1 million of general and administrative expense during the quarter consisting of the Company’s share of the forfeited deposit of $0.8 million and approximately $0.3 million of related due diligence costs.

•

On December 8, 2004, the Company completed the sale of 560 Forbes Boulevard for approximately $4.0 million. This 40,000 square foot industrial property is located in South San Francisco, California.

•

On December 17, 2004, the Company modified its Dividend Reinvestment and Stock Purchase Plan. Full details of the modified Plan are contained in the Plan prospectus, which was filed with the Securities and Exchange Commission.

•

On December 20, 2004, a joint venture in which the Company has a 25% interest refinanced the construction loan on its 901 New York Avenue property located in Washington, D.C. The original construction loan had an outstanding balance of $96.7 million, bore interest at LIBOR plus 1.65% per annum and was scheduled to mature in November 2005. The new mortgage loan totaling $170.0 million bears interest at a fixed rate of 5.19% per annum and matures on January 1, 2015. The new mortgage loan requires interest-only payments for the first three years and requires principal and interest payments based on a 30-year amortization for years four through ten.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter of 2005 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.


	First Quarter 2005					Full Year 2005
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	0.49	-	$	0.51	$	2.25	-	$	2.40
Add:

Projected Company Share of Real Estate Depreciation and Amortization	$	0.46	-	$	0.46	$	1.85	-	$	1.85

Projected FFO per Share (diluted)	$	0.95	-	$	0.97	$	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, January 26, 2005 at 10:00 AM (Eastern Time), open to the general public, to discuss the fourth quarter and full fiscal year 2004 results, the 2005 projections, and other related matters. The number to call for this interactive teleconference is (800) 240-2430. A replay of the conference call will be available through February 2, 2005 by dialing (800) 405-2236 and entering the passcode 11020358. 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’ fourth 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 properties and also includes three hotels and one industrial property. 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 first quarter and full fiscal year 2005.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended December 31,						Year ended December 31,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	276,216		$	256,360		$	1,070,806		$	999,498
Recoveries from tenants		41,621			37,834			165,173			155,225
Parking and other		14,369			12,213			57,313			53,596

Total rental revenue		332,206			306,407			1,293,292			1,208,319
Hotel revenue		24,230			22,082			76,342			70,083
Development and management services		5,338			4,550			20,464			18,185
Interest and other		841			866			10,367			3,033

Total revenue		362,615			333,905			1,400,465			1,299,620

Expenses
Operating:
Rental		107,074			98,252			419,022			397,258
Hotel		16,961			15,992			55,724			52,250
General and administrative		15,541			11,749			53,636			45,359
Interest		79,378			75,001			306,170			299,436
Depreciation and amortization		68,735			55,824			252,256			208,490
Net derivative losses		—			—			—			1,038
Losses from early extinguishments of debt		—			—			6,258			1,474

Total expenses		287,689			256,818			1,093,066			1,005,305

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		74,926			77,087			307,399			294,315
Minority interests in property partnerships		1,558			370			4,685			1,827
Income from unconsolidated joint ventures		664			662			3,380			6,016

Income before minority interest in Operating Partnership, gains on sales of real estate and other assets and discontinued operations		77,148			78,119			315,464			302,158
Minority interest in Operating Partnership		(16,000	)		(18,676	)		(68,174	)		(73,777	)

Income before gains on sales of real estate and other assets and discontinued operations		61,148			59,443			247,290			228,381
Gains on sales of real estate and other assets, net of minority interest		—			—			8,149			57,574

Income before discontinued operations		61,148			59,443			255,439			285,955
Discontinued Operations:
Income from discontinued operations, net of minority interest		19			1,149			1,240			6,133
Gains on sales of real estate from discontinued operations, net of minority interest		1,087			—			27,338			73,234

Net income available to common shareholders	$	62,254		$	60,592		$	284,017		$	365,322

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.56		$	0.61		$	2.40		$	2.89
Discontinued operations, net of minority interest		0.01			0.01			0.27			0.82

Net income available to common shareholders	$	0.57		$	0.62		$	2.67		$	3.71

Weighted average number of common shares outstanding		109,359			97,945			106,458			96,900

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.55		$	0.60		$	2.35		$	2.84
Discontinued operations, net of minority interest		0.01			0.01			0.26			0.81

Net income available to common shareholders	$	0.56		$	0.61		$	2.61		$	3.65

Weighted average number of common and common equivalent shares outstanding		111,888			100,100			108,762			98,486

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	December 31, 2004			December 31, 2003
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	9,033,858		$	8,202,958
Development in progress		35,063			542,600
Land held for future development		222,306			232,098
Real estate held for sale, net		—			5,604
Less: accumulated depreciation		(1,143,369	)		(1,001,435	)

Total real estate		8,147,858			7,981,825

Cash and cash equivalents		239,344			22,686
Cash held in escrows		24,755			21,321
Tenant and other receivables, net of allowance for doubtful accounts of $2,879 and $3,157, respectively		25,500			18,425
Accrued rental income, net of allowance of $4,252 and $5,030, respectively		251,236			189,852
Deferred charges, net		254,950			188,855
Prepaid expenses and other assets		38,630			39,350
Investments in unconsolidated joint ventures		80,955			88,786

Total assets	$	9,063,228		$	8,551,100

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,541,131		$	3,471,400
Unsecured senior notes, net of discount		1,470,683			1,470,320
Unsecured line of credit		—			63,000
Accounts payable and accrued expenses		94,451			92,026
Dividends and distributions payable		91,428			84,569
Interest rate contracts		1,164			8,191
Accrued interest payable		50,670			50,931
Other liabilities		91,300			80,367

Total liabilities		5,340,827			5,320,804

Commitments and contingencies		—			—

Minority interests		786,328			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, 110,399,385 and 98,309,077 shares issued and 110,320,485 and 98,230,177 shares outstanding in 2004 and 2003, respectively		1,103			982
Additional paid-in capital		2,633,980			2,104,158
Earnings in excess of dividends		325,452			320,900
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(6,103	)		(6,820	)
Accumulated other comprehensive loss		(15,637	)		(16,335	)

Total stockholders’ equity		2,936,073			2,400,163

Total liabilities and stockholders’ equity	$	9,063,228		$	8,551,100

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended December 31,						Year ended December 31,
	2004			2003			2004			2003
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	62,254		$	60,592		$	284,017		$	365,322

Add:
Minority interest in Operating Partnership		16,000			18,676			68,174			73,777
Less:
Minority interests in property partnerships		1,558			370			4,685			1,827
Income from unconsolidated joint ventures		664			662			3,380			6,016
Gains on sales of real estate and other assets, net of minority interest		—			—			8,149			57,574
Income from discontinued operations, net of minority interest		19			1,149			1,240			6,133
Gains on sales of real estate from discontinued operations, net of minority interest		1,087			—			27,338			73,234

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		74,926			77,087			307,399			294,315

Add:
Real estate depreciation and amortization (2)		69,989			57,500			257,319			216,235
Income from discontinued operations		64			1,489			1,703			7,804
Income from unconsolidated joint ventures		664			662			3,380			6,016
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		123			(945	)		(922	)		(3,458	)
Preferred distributions		(3,361	)		(4,443	)		(15,050	)		(21,249	)

Funds from operations		142,405			131,350			553,829			501,137

Add/(subtract):
Net derivative losses (SFAS No. 133)		—			—			—			1,038

Funds from operations before net derivative losses (SFAS No. 133)	$	142,405		$	131,350		$	553,829		$	502,175

Less:
Minority interest in the Operating Partnership’s share of funds from operations		23,514			24,419			94,332			90,102

Funds from operations available to common shareholders before net derivative losses (SFAS No. 133)	$	118,891		$	106,931		$	459,497		$	412,073

Our percentage share of funds from operations - basic		83.49	%		81.41	%		82.97	%		82.06	%

Weighted average shares outstanding - basic		109,359			97,945			106,458			96,900

FFO per share basic before net derivative losses (SFAS No. 133)	$	1.09		$	1.09		$	4.32		$	4.25

FFO per share basic after net derivative losses (SFAS No. 133)	$	1.09		$	1.09		$	4.32		$	4.24

Weighted average shares outstanding - diluted		117,269			107,188			114,816			106,861

FFO per share diluted before net derivative losses (SFAS No. 133)	$	1.05		$	1.05		$	4.16		$	4.09

FFO per share diluted after net derivative losses (SFAS No. 133)	$	1.05		$	1.05		$	4.16		$	4.08

(1)

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.

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.

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $68,735, $55,824, $252,256 and $208,490, our share of unconsolidated joint venture real estate depreciation and amortization of $1,798, $1,874, $6,814 and $8,475 and depreciation and amortization from discontinued operations of $0, $505, $685 and $1,987, less corporate related depreciation and amortization of $544, $703, $2,436 and $2,717 for the three months and year ended December 31, 2004 and 2003, respectively.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	December 31, 2004		December 31, 2003
Greater Boston	90.2	%	88.9	%
Greater Washington, D.C.	97.9	%	95.1	%
Midtown Manhattan	96.4	%	99.4	%
Baltimore, MD	90.9	%	95.1	%
Richmond, VA	91.3	%	89.2	%
Princeton/East Brunswick, NJ	90.2	%	93.4	%
Greater San Francisco	80.3	%	82.4	%
Bucks County, PA	N/A		100.0	%

Total Portfolio	92.1	%	92.1	%


	% Leased by Type
	December 31, 2004		December 31, 2003
Class A Office Portfolio	92.3	%	92.7	%
Office/Technical Portfolio	97.6	%	89.4	%
Industrial Portfolio	0.0	%	56.6	%

Total Portfolio	92.1	%	92.1	%