SEC Filing

View:

Download DOC

Download PDF

Download XLS

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): April 26, 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 April 26, 2005, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of 2005. 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.


Exhibit No.		Description
*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 2005.

*99.2		Press release dated April 26, 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: April 26, 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 March 31, 2005.

*99.2		Press release dated April 26, 2005.

*	Filed herewith.

Supplemental Operating and Financial Data

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2005

Boston Properties, Inc.

First Quarter 2005

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.

First Quarter 2005

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 five markets: Boston, Washington, D.C., Midtown Manhattan, San Francisco, and Princeton, N.J. 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. 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’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of thirty-five individuals average twenty-four years of real estate experience and thirteen years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Mortimer B. Zuckerman, Chairman of our Board of Directors, and Edward H. Linde, our President and Chief Executive Officer. Each has a national reputation, which attracts business and investment opportunities. In addition, our three Executive Vice Presidents and other senior officers that serve as Regional Managers have strong reputations that aid us in identifying and closing on new opportunities, having opportunities brought to us, and negotiating with tenants and build-to-suit prospects. Boston Properties’ Board of Directors consists of ten distinquished members, the majority of which serve as Independent 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 March 31, 2005)


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)		137.6 million
Dividend – Quarter/Annualized		$0.65/$2.60
Dividend Yield		4.32%
Total Market Capitalization		$13.3 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

First Quarter 2005

INVESTOR INFORMATION


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

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

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

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

Carol B. Einiger	David A. Twardock	Robert E. Selsam	Arthur S. Flashman
Director	Director	Senior Vice President, Manager of New York Office	Vice President and Controller

Company Information

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

Common Stock Data (NYSE: BXP)

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


	Q1 2005			Q4 2004			Q3 2004			Q2 2004			Q1 2004
High Price	$	63.65		$	64.85		$	56.29		$	55.54		$	54.89
Low Price	$	56.93		$	56.25		$	49.86		$	43.63		$	46.69
Average Closing Price	$	60.15		$	60.40		$	53.57		$	48.15		$	51.06
Closing Price, at the end of the quarter	$	60.23		$	64.67		$	55.39		$	50.08		$	54.31
Dividends per share - annualized (1)	$	2.60		$	2.60		$	2.60		$	2.60		$	2.52
Closing dividend yield - annualized		4.32	%		4.02	%		4.69	%		5.19	%		4.64	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		137,634			137,399			136,277		$	135,889			135,582
Closing market value of outstanding shares and units (thousands)	$	8,289,696		$	8,885,593		$	7,548,404		$	6,805,321		$	7,363,458

(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:


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

Boston Properties, Inc.

First Quarter 2005

RESEARCH COVERAGE


Equity Research Coverage		Debt Research Coverage
David Aubuchon	Richard Moore	Chris Brown	Rating Agencies:
A.G. Edwards & Sons	KeyBanc Capital Markets	Banc of America Securities
314.955.5452	216.443.2815	704.386.2524	William Travers
			Fitch Ratings
Ross Nussbaum / John Kim	David Harris / David Toti	Susan Berliner	212.908.0304
Banc of America Securities	Lehman Brothers	Bear Stearns & Company
212.847.5668 / 212.847.5761	212.526.1790 / 212.526.2002	212.272.3824	Karen Nickerson
			Moody’s Investors Service
Ross Smotrich /Jeffrey Langbaum	Steve Sakwa / Brian Legg	Thierry Perrein	212.553.4924
Bear Stearns & Company	Merill Lynch & Company	Credit Suisse First Boston
212.272.8046 / 212.272.4201	212.449.0335 / 212.449.1153	212.538.8618	James Fielding
			Standard & Poor’s
Louis Taylor / Christoper Capolongo	Gregory Whyte / David Cohen	Scott O’Shea	212.438.2452
Deutsche Bank Securities	Morgan Stanley & Company	Deutsche Bank Securities
212.250.4912 / 212.250.7726	212.761.6331 / 212.761.8564	212.250.7190

David Loeb / Gustavo Sarago	James Sullivan / James Feldman	Mark Streeter
Friedman, Billings, Ramsey & Co.	Prudential Equity Group	J.P. Morgan Securities
703.469.1289 / 703.469.1042	212.778.2515 / 212.778.1724	212.834.5086

Carey Callaghan / Allison Widman	Jay Leupp / David Copp	John Forrey
Goldman Sachs & Company	RBC Capital Markets (US)	Merrill Lynch & Company
212.902.4351 / 212.902.2796	415.633.8588 / 415.633.8558	212.449.1812

Jim Sullivan / Michael Knott	Jonathan Litt / John Stewart	Thomas Cook
Green Street Advisors	Smith Barney Citigroup	Smith Barney Citigroup
949.640.8780	212.816.0231 / 212.816.1685	212.723.1112

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

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 and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties’ performance made by the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

Boston Properties, Inc.

First Quarter 2005

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
	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
Income Items:
Revenue	$	356,189		$	362,520		$	359,139		$	343,120		$	331,529
Straight line rent (SFAS 13)	$	20,871		$	19,218		$	16,954		$	13,487		$	11,620
Fair value lease revenue (SFAS 141) (1)	$	292		$	245		$	241		$	268		$	(83	)
Lease termination fees (included in revenue) (2)	$	1,226		$	634		$	1,800		$	—		$	1,558
Capitalized interest	$	693		$	721		$	1,758		$	3,539		$	4,831
Capitalized wages	$	1,649		$	1,549		$	1,459		$	1,565		$	1,357
Operating Margins [(rental revenue - rental expenses)/rental revenue] (3)		68.9	%		69.1	%		68.9	%		69.4	%		69.6	%
Net income available to common shareholders	$	61,242		$	62,254		$	68,542		$	87,118		$	66,048

Funds from operations (FFO) available to common shareholders (4)	$	117,301		$	118,891		$	119,937		$	116,904		$	103,831

FFO per share - diluted (4)	$	1.03		$	1.05		$	1.07		$	1.05		$	0.99
Net income available to common shareholders per share - basic	$	0.56		$	0.57		$	0.63		$	0.81		$	0.65
Net income available to common shareholders per share - diluted	$	0.55		$	0.56		$	0.62		$	0.79		$	0.64
Dividends per share	$	0.65		$	0.65		$	0.65		$	0.65		$	0.63
Funds available for distribution to common shareholders and common unitholders (FAD) (5)	$	114,618		$	78,964		$	101,147		$	109,181		$	98,135
Ratios:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.59			2.64			2.74			2.80			2.66
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.57			2.62			2.68			2.67			2.50
FFO Payout Ratio (7)		63.11	%		61.90	%		60.75	%		61.90	%		63.64	%
FAD Payout Ratio (8)		75.01	%		109.43	% (9)		83.73	%		77.52	%		82.49	%

	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
Capitalization:
Total Debt	$	5,011,016		$	5,011,814		$	5,016,069		$	4,994,703		$	4,910,761
Price @ Quarter End	$	60.23		$	64.67		$	55.39		$	50.08		$	54.31
Equity Value @ Quarter End	$	8,289,696		$	8,885,593		$	7,548,404		$	6,805,321		$	7,363,458
Total Market Capitalization (10)	$	13,300,712		$	13,897,407		$	12,564,473		$	11,800,024		$	12,274,219
Debt/Total Market Capitalization (10)		37.67	%		36.06	%		39.92	%		42.33	%		40.01	%

(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 $6,476, $6,541, $8,312, $5,900 and $6,370 for the three months ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, 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 at 100 East Pratt street which is currently under agreement to be sold. Excluding these costs, the FAD payout ratio would be 89.23%.

(10)	For additional detail, see page 12.

Boston Properties, Inc.

First Quarter 2005

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
ASSETS
Real estate	$	9,024,693		$	9,033,858		$	9,053,584		$	8,427,296		$	8,272,848
Construction in progress		66,699			35,063			19,279			606,012			579,751
Land held for future development		234,010	(1)		222,306			221,901			230,155			228,361
Real estate held for sale		35,217			—			45			5,756			42,449
Less accumulated depreciation		(1,195,648	)		(1,143,369	)		(1,151,896	)		(1,099,715	)		(1,047,911	)

Total real estate		8,164,971			8,147,858			8,142,913			8,169,504			8,075,498
Cash and cash equivalents		209,307			239,344			213,873			227,698			182,151
Escrows		25,613			24,755			24,137			27,888			25,666
Tenant and other receivables, net		27,442			25,500			12,936			11,637			14,962
Accrued rental income, net		272,035			251,236			232,143			215,536			202,604
Deferred charges, net		255,695			254,950			240,834			212,666			196,598
Prepaid expenses and other assets		63,073			38,630			57,302			33,388			56,001
Investments in unconsolidated joint ventures		79,855			80,955			88,276			83,950			83,555

Total assets	$	9,097,991		$	9,063,228		$	9,012,414		$	8,982,267		$	8,837,035

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,540,242		$	3,541,131		$	3,545,477		$	3,524,202		$	3,440,351
Unsecured senior notes, net of discount		1,470,774			1,470,683			1,470,592			1,470,501			1,470,410
Unsecured line of credit		—			—			—			—			—
Accounts payable and accrued expenses		105,009			94,451			88,124			91,790			110,002
Dividends and distributions payable		91,259			91,428			90,942			91,350			89,166
Interest rate contracts		—			1,164			2,928			4,800			6,417
Accrued interest payable		41,987			50,670			41,007			50,318			41,984
Other liabilities		134,716	(1)		91,300			89,813			89,145			79,390

Total liabilities		5,383,987			5,340,827			5,328,883			5,322,106			5,237,720

Commitments and contingencies		—			—			—			—			—

Minority interests		782,532			786,328			790,758			804,172			851,901

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, 110,442,177, 110,320,485, 108,986,697, 108,160,487 and 106,442,998 outstanding, respectively		1,104			1,103			1,090			1,082			1,064
Additional paid-in capital		2,639,806			2,633,980			2,582,036			2,544,278			2,453,215
Earnings in excess of dividends		314,907			325,452			334,736			336,704			319,890
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(6,160	)		(6,103	)		(6,555	)		(7,367	)		(7,872	)
Accumulated other comprehensive loss		(15,463	)		(15,637	)		(15,812	)		(15,986	)		(16,161	)

Total stockholders’ equity		2,931,472			2,936,073			2,892,773			2,855,989			2,747,414

Total liabilities and stockholders’ equity	$	9,097,991		$	9,063,228		$	9,012,414		$	8,982,267		$	8,837,035

(1)

Includes approximately $31 million of land assets related to the sale of a land parcel at the Prudential Center on February 23, 2005. Net proceeds received of approximately $41 million is included in other liabilities for the three months ended March 31, 2005. This transaction does not currently qualify as a sale for accounting purposes due to continuing involvement provisions.

Boston Properties, Inc.

First Quarter 2005

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04			31-Mar-04
Revenue:
Rental
Base Rent	$	278,749		$	276,211		$	273,605		$	263,559		$	253,732
Recoveries from tenants		43,340			41,555			43,381			39,261			40,581
Parking and other		13,925			14,353			15,645	(1)		14,083			13,188

Total rental revenue		336,014			332,119			332,631			316,903			307,501
Hotel revenues		14,002			24,230			19,768			19,166			13,178
Development and management services		4,536			5,330			5,832			5,961			3,322
Interest and other		1,637			841			908			1,090			7,528	(2)

Total revenue		356,189			362,520			359,139			343,120			331,529

Expenses:
Operating		63,778			62,386			65,998			59,667			60,407
Real estate taxes		44,823			44,337			42,854			41,382			39,715
Hotel operating		12,286			16,961			13,709			13,376			11,678
General and administrative		14,813			15,541			13,002			12,493			12,600
Interest (3)		79,354			79,378			77,698			74,789			74,305
Depreciation and amortization		67,983			68,529			65,480			60,366			56,007
Loss from early extinguishment of debt		—			—			—			—			6,258

Total expenses		283,037			287,132			278,741			262,073			260,970

Income before minority interests and income from unconsolidated joint ventures		73,152			75,388			80,398			81,047			70,559
Minority interest in property partnerships		1,652			1,558			1,447			1,292			385
Income from unconsolidated joint ventures		1,335			664			460			879			1,377

Income before minority interest in Operating Partnership		76,139			77,610			82,305			83,218			72,321
Minority interest in Operating Partnership (4)		(15,699	)		(16,076	)		(17,162	)		(17,776	)		(17,125	)

Income before gains on sales of real estate and land held for development		60,440			61,534			65,143			65,442			55,196
Gains on sales of real estate, net of minority interest		—			—			—			1,377			6,698
Gains on sales of land held for development, net of minority interest		1,208			—			—			—			—

Income before discontinued operations		61,648			61,534			65,143			66,819			61,894
Income (loss) from discontinued operations, net of minority interest		(406	)		(367	)		(751	)		710			1,633
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	$	61,242		$	62,254		$	68,542		$	87,118		$	66,048

INCOME PER SHARE OF COMMON STOCK (EPS)

Net income available to common shareholders per share - basic	$	0.56		$	0.57		$	0.63		$	0.81		$	0.65

Net income available to common shareholders per share - diluted	$	0.55		$	0.56		$	0.62		$	0.79		$	0.64

(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 $693, $721, $1,758, $3,539 and $4,831 for the three months ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

(4)

Equals minority interest share of 16.41%, 16.51%, 16.75%, 16.96% and 17.96% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

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

Boston Properties, Inc.

First Quarter 2005

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04		31-Mar-04
Net income available to common shareholders	$	61,242		$	62,254		$	68,542		$	87,118	$	66,048
Add:
Minority interest in Operating Partnership		15,699			16,076			17,162			17,776		17,125
Less:
Minority interest in property partnerships		1,652			1,558			1,447			1,292		385
Income from unconsolidated joint ventures		1,335			664			460			879		1,377
Gain on sales of real estate and other assets, net of minority interest		—			—			—			1,377		6,698
Gain on sales of land held for development, net of minority interest		1,208			—			—			—		—
Income (loss) from discontinued operations, net of minority interest		(406	)		(367	)		(751	)		710		1,633
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		73,152			75,388			80,398			81,047		70,559
Add:
Real estate depreciation and amortization (1)		69,540			69,989			67,538			61,919		57,873
Income (loss) from discontinued operations		(486	)		(398	)		(849	)		910		2,047
Income from unconsolidated joint ventures		1,335			664			460			879		1,377
Less:
Minority property partnerships’ share of funds from operations		(75	)		(123	)		(17	)		158		904
Preferred dividends and distributions		3,280			3,361			3,491			3,813		4,385

Funds from operations (FFO)		140,336			142,405			144,073			140,784		126,567
Less:
Minority interest in Operating Partnership’s share of funds from operations		23,035			23,514			24,136			23,880		22,736

FFO available to common shareholders (2)	$	117,301		$	118,891		$	119,937		$	116,904	$	103,831

FFO per share - basic	$	1.06		$	1.09		$	1.11		$	1.09	$	1.03

Weighted average shares outstanding - basic		110,187			109,359			108,339			107,216		100,890

FFO per share - diluted	$	1.03		$	1.05		$	1.07		$	1.05	$	0.99

Weighted average shares outstanding - diluted		117,721			117,269			116,149			115,208		110,577

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)
Basic FFO	$	140,336	131,825	$	142,405	130,987	$	144,073	130,141	$	140,784	129,116	$	126,567	122,983
Effect of Dilutive Securities
Convertible Preferred Units		3,280	5,357		3,361	5,381		3,491	5,568		3,813	6,192		4,385	7,087
Stock Options and other		—	2,177		—	2,529		—	2,242		—	1,800		—	2,599

Diluted FFO	$	143,616	139,359	$	145,766	138,897	$	147,564	137,951	$	144,597	137,108	$	130,952	132,669

Less:
Minority interest in Operating Partnership’s share of diluted funds from operations		22,299	21,638		22,698	21,628		23,321	21,802		23,097	21,900		21,806	22,092

Company’s share of diluted FFO (3)	$	121,317	117,721	$	123,068	117,269	$	124,243	116,149	$	121,500	115,208	$	109,146	110,577

FFO per share - basic	$	1.06		$	1.09		$	1.11		$	1.09		$	1.03

FFO per share - diluted	$	1.03		$	1.05		$	1.07		$	1.05		$	0.99

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $67,983, $68,529, $65,480, $60,366 and $56,007, our share of unconsolidated joint venture real estate depreciation and amortization of $1,798, $1,798, $1,636, $1,683 and $1,697 and depreciation and amortization from discontinued operations of $179, $206, $1,080, $487 and $786, less corporate related depreciation of $420, $544, $658, $617 and $617 for the three months ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

(2)	Based on weighted average shares for the quarter. Company’s share for the quarter ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004 was 83.59% 83.49%, 83.25%, 83.04% and 82.04%, respectively.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004 was 84.47%, 84.43%, 84.20%, 84.03% and 83.35%, respectively.

Boston Properties, Inc.

First Quarter 2005

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
Funds from operations (FFO) (see page 9)	$	140,336		$	142,405		$	144,073		$	140,784		$	126,567
2nd generation tenant improvements and leasing commissions		(4,730	)		(33,462	)(1)		(19,583	)		(17,693	)		(15,102	)
Straight-line rent		(20,871	)		(19,218	)		(16,954	)		(13,487	)		(11,620	)
Recurring capital expenditures		(1,461	)		(10,921	)		(6,831	)		(4,138	)		(3,211	)
Fair value interest adjustment		(798	)		(798	)		(793	)		(787	)		(340	)
Fair value lease revenue (SFAS 141)		(292	)		(245	)		(241	)		(268	)		83
Hotel improvements, equipment upgrades and replacements		(516	)		(262	)		(238	)		(228	)		(273	)
Non real estate depreciation		420			544			658			617			617
Stock-based compensation		2,101			898			955			933			1,279
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		429			23			101			3,448			135

Funds available for distribution to common shareholder and common unitholders (FAD)	$	114,618		$	78,964		$	101,147		$	109,181		$	98,135


*Interest Coverage Ratios*

*(in thousands, except for ratio amounts)*

	Three Months Ended
	March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004			March 31, 2004
*Excluding Capitalized Interest*

Income before minority interests and income from unconsolidated joint ventures	$	73,152		$	75,388		$	80,398		$	81,047		$	70,559
Interest expense		79,354			79,378			77,698			74,789			74,305
Depreciation		67,983			68,529			65,480			60,366			56,007
Depreciation from joint ventures		1,798			1,798			1,636			1,683			1,697
Income from unconsolidated joint ventures		1,335			664			460			879			1,377
Discontinued Operations - depreciation		179			206			1,080			487			786
Discontinued operations		(486	)		(398	)		(849	)		910			2,047
Straight-line rent		(20,871	)		(19,218	)		(16,954	)		(13,487	)		(11,620	)
Fair value lease revenue (SFAS 141)		(292	)		(245	)		(241	)		(268	)		83

Subtotal		202,152			206,102			208,708			206,406			195,241
Divided by:
Interest expense (2)		77,988			78,051			76,242			73,683			73,305
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		77,988			78,051			76,242			73,683			73,305

Interest Coverage Ratio		2.59			2.64			2.74			2.80			2.66

*Including Capitalized Interest*

Income before minority interests and income from unconsolidated joint ventures	$	73,152		$	75,388		$	80,398		$	81,047		$	70,559
Interest expense		79,354			79,378			77,698			74,789			74,305
Depreciation		67,983			68,529			65,480			60,366			56,007
Depreciation from joint ventures		1,798			1,798			1,636			1,683			1,697
Income from unconsolidated joint ventures		1,335			664			460			879			1,377
Discontinued operations		(486	)		(398	)		(849	)		910			2,047
Fair value lease revenue (SFAS 141)		(292	)		(245	)		(241	)		(268	)		83
Straight-line rent		(20,871	)		(19,218	)		(16,954	)		(13,487	)		(11,620	)
Discontinued Operations - depreciation		179			206			1,080			487			786

Subtotal		202,152			206,102			208,708			206,406			195,241
Divided by:
Interest expense (2) (3)		78,681			78,772			78,000			77,222			78,136
Interest expense - discontinued operations		—			—			—			—			—

Total interest expense		78,681			78,772			78,000			77,222			78,136

Interest Coverage Ratio		2.57			2.62			2.68			2.67			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 $1,366, $1,327, $1,456, $1,106 and $1,000 for the quarters ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

(3)	Includes capitalized interest of $693, $721, $1,758, $3,539 and $4,831 for the quarters ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

Boston Properties, Inc.

First Quarter 2005

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 March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.


	Three Months Ended
	31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04		31-Mar-04
Total Revenue (1)	$	3		$	168		$	931		$	2,261	$	4,057

Expenses:
Operating		310			360			700			864		1,224
Depreciation and amortization		179			206			1,080			487		786

Total Expenses		489			566			1,780			1,351		2,010

Income before minority interests		(486	)		(398	)		(849	)		910		2,047

Minority interest in property partnership		—			41			53			54		57
Minority interest in Operating Partnership		(80	)		(72	)		(151	)		146		357

Income (loss) from discontinued operations (net of minority interest)	$	(406	)	$	(367	)	$	(751	)	$	710	$	1,633


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

(1)	The impact of the straight-line rent adjustment increased (decreased) revenue by $0, $(3), $(13), $(16) and ($69) for the three months ended March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004, respectively.

Boston Properties, Inc.

First Quarter 2005

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal March 31, 2005
Mortgage Notes Payable	$	3,540,242
Unsecured Line of Credit		—
Unsecured Senior Notes, net of discount		1,470,774

Total Debt	$	5,011,016

Boston Properties Limited Partnership Unsecured Senior Notes


Settlement Date	5/22/03			3/18/03			1/17/03			12/13/2002			Total/Average
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	$	1,483		$	268		$	359		$	2,116			4,226

Unsecured Senior Notes, net of discount	$	248,517		$	299,732		$	174,641		$	747,884		$	1,470,774

Equity

(in thousands)


	Shares/ Units Outstanding as of 3/31/05	Common Stock Equivalents		Equivalent (1)
Common Stock	110,442	110,442	(2)	$	6,651,922
Common Operating Partnership Units	21,835	21,835	(3)		1,315,122
Series Two Preferred Operating Partnership Units	4,082	5,357			322,652

Total Equity		137,634		$	8,289,696

Total Debt					5,011,016

Total Market Capitalization				$	13,300,712

(1)	Value based on March 31, 2005 closing price of $60.23 per share of common stock.

(2)	Includes 337 shares of restricted stock, of which 114 shares are vested as of March 31, 2005.

(3)	Includes 372 long-term incentive plan units, of which 22 units are vested as of March 31, 2005.

Boston Properties, Inc.

First Quarter 2005

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2005			2006			2007			2008			2009			Thereafter			Total
Floating Rate Debt	$	—		$	—		$	435,098		$	—		$	—		$	—		$	435,098
Fixed Rate Debt		265,949			309,216			187,318			974,758			188,278			2,650,399			4,575,918

Total Debt	$	265,949		$	309,216		$	622,416		$	974,758		$	188,278		$	2,650,399		$	5,011,016

Weighted Average Floating Rate Debt		—			—			3.59	%		—			—			—			3.59	%
Weighted Average Fixed Rate Debt		7.02	%		6.27	%		6.61	%		6.81	%		7.11	%		6.58	%		6.66	%

Total Weighted Average Rate		7.02	%		6.27	%		4.50	%		6.81	%		7.11	%		6.58	%		6.39	%

Unsecured Debt

Unsecured Line of Credit - Matures January 17, 2006

(in thousands)


Facility	Outstanding @ 3/31/05		Letters of Credit		Remaining Capacity @ 3/31/05
$605,000	$	—	$	8,136	$	596,864

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.35	%	5.95	%	8.7 years
Secured Debt	70.65	%	6.57	%	4.1 years

Total Debt	100.00	%	6.39	%	5.4 years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	8.68	%	3.59	%	1.8 years
Fixed Rate Debt	91.32	%	6.66	%	5.8 years

Total Debt	100.00	%	6.39	%	5.4 years

Boston Properties, Inc.

First Quarter 2005

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2005			2006			2007			2008			2009			Thereafter			Total
Citigroup Center	$	5,033		$	7,145		$	7,676		$	8,246		$	8,858		$	466,148		$	503,106
Times Square Tower		—			—			435,098	(1)		—			—			—			435,098
Embarcadero Center One, Two and Federal Reserve (2)		3,889			5,496			5,877			278,912			—			—			294,174
Prudential Center		3,655			5,256			5,619			259,706			—			—			274,236
280 Park Avenue		2,469			3,519			3,798			4,099			4,423			240,272			258,580
599 Lexington Avenue		225,000	(3)		—			—			—			—			—			225,000
Embarcadero Center Four		2,838			4,061			4,346			129,712			—			—			140,957
Embarcadero Center Three		1,894			2,671			132,726			—			—			—			137,291
Riverfront Plaza		2,348			3,314			3,540			95,325			—			—			104,527
Democracy Center		1,591			2,257			2,421			2,597			91,132			—			99,998
Embarcadero Center West Tower		1,247			90,416			—			—			—			—			91,663
100 East Pratt Street		1,588			2,246			2,401			78,110			—			—			84,345
601 and 651 Gateway Boulevard		—			82,835			—			—			—			—			82,835
One Freedom Square		1,432			2,005			2,122			2,245			2,375			71,266			81,445
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		992			1,387			1,466			1,549			1,637			53,849			60,880
202, 206 & 214 Carnegie Center		543			780			845			916			994			56,306			60,384
1330 Connecticut Avenue		1,602			2,238			2,346			2,452			2,577			47,722			58,937
New Dominion Technology Park, Building One		607			1,283			1,379			1,481			1,594			50,964			57,308
Reservoir Place		1,133			1,484			1,572			1,666			48,592			—			54,447
Capital Gallery		1,156			50,651			—			—			—			—			51,807
504, 506 & 508 Carnegie Center		849			1,221			1,314			40,914			—			—			44,298
10 & 20 Burlington Mall Rd & 91 Hartwell		564			801			861			925			994			33,593			37,738
10 Cambridge Center		499			715			777			844			916			29,677			33,428
Sumner Square		422			599			645			694			747			25,495			28,602
1301 New York Avenue		1,073			1,531			1,651			1,781			21,628			—			27,664
Eight Cambridge Center		455			649			702			757			819			22,911			26,293
510 Carnegie Center		474			683			735			23,519			—			—			25,411
University Place		569			806			864			925			992			18,422			22,578
Reston Corporate Center		489			698			745			20,524			—			—			22,456
Bedford Business Park		569			818			890			16,859			—			—			19,136
191 Spring Street		519			18,267			—			—			—			—			18,786
101 Carnegie Center		307			6,622			—			—			—			—			6,929
Montvale Center		143			6,762			—			—			—			—			6,905

		265,949			309,216			622,416			974,758			188,278			1,179,625			3,540,242

Unsecured Senior Notes		—			—			—			—			—			1,470,774			1,470,774
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	265,949		$	309,216		$	622,416		$	974,758		$	188,278		$	2,650,399		$	5,011,016

% of Total Debt		5.31	%		6.17	%		12.42	%		19.45	%		3.76	%		52.90	%		100.00	%
Balloon Payments	$	225,000		$	253,738		$	567,824		$	930,476		$	158,698		$	2,561,834		$	4,697,570
Scheduled Amortization	$	40,949		$	55,478		$	54,592		$	44,282		$	29,580		$	88,565		$	313,446

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

(2)	The Old Federal Reserve was released from collateral on this loan in connection with the sale of the property on April 20, 2005.

(3)	Matures on July 19, 2005.

Boston Properties, Inc.

First Quarter 2005

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 March 31, 2005 to show that the Company’s operating partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt securities. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.


	March 31, 2005
Total Assets:
Capitalized Property Value	$	11,391,958
Cash and Cash Equivalents		209,307
Undeveloped Land, at Cost		194,026
Development in Process, at Cost (including Joint Venture %)		78,711

Total Assets	$	11,874,002

Unencumbered Assets	$	4,915,225

Secured Debt (Fixed and Variable) (1)	$	3,524,554
Joint Venture Debt		199,262
Contingent Liabilities & Letters of Credit		19,195
Unsecured Debt (2)		1,475,000

Total Outstanding Debt	$	5,218,011

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)	$	73,152
Add: Interest Expense (per Consolidated Income Statement)		79,354
Add: Depreciation and Amortization (per Consolidated Income Statement)		67,983
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)		—

EBITDA		220,489
Add: Company share of unconsolidated joint venture EBITDA		6,337

Consolidated EBITDA	$	226,826

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)	$	79,354
Add: Company share of unconsolidated joint venture interest expense		3,204
Less: Amortization of financing costs		(1,366	)
Less: Interest expense funded by construction loan draws		—

Adjusted Interest Expense	$	81,192



Covenant Ratios and Related Data	Test		Actual
Total Outstanding Debt/Total Assets	Less than 60	%		43.9	%
Secured Debt/Total Assets	Less than 50	%		31.4	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x			2.79
Unencumbered Assets/ Unsecured Debt	Greater than 150	%		333.2	%

Unencumbered Consolidated EBITDA			$	90,843


Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)				4.09

% of unencumbered Consolidated EBITDA to Consolidated EBITDA				40.0	%

# of unencumbered properties				67

(1)	Excludes Fair Value Adjustment of $23,300.

(2)	Excludes Debt Discount of $4,226.

Boston Properties, Inc.

First Quarter 2005

UNCONSOLIDATED JOINT VENTURES

Miscellaneous Balance Sheet Information

(unaudited and in thousands)

as of March 31, 2005


	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue			801 New Jersey Avenue (1)			Wisconsin Place (1)(2)			505 9th Street (1)			Value- Added Fund (3)			Combined
Total Equity (4)	$	9,078		$	31,941		$	22,356		$	3,055		$	3,215		$	2,072		$	2,685		$	5,453		$	79,855

Mortgage/Construction loans payable (4)	$	46,683		$	68,089		$	19,250		$	42,500		$	—		$	8,490		$	—		$	14,250		$	199,262

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


*Results of Operations*
(unaudited and in thousands)
for the three months ended March 31, 2005

	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue			801 New Jersey Avenue (1)			Wisconsin Place (1)(2)			505 9th Street (1)			Value- Added Fund (3)			Combined
REVENUE
Total revenue	$	5,222		$	6,966		$	3,585		$	5,602		$	15		$	—		$	—		$	2,058		$	23,448	(5)

EXPENSES
Operating		1,710			2,263			1,140			1,608			—			—			—			775			7,496

SUBTOTAL		3,512			4,703			2,445			3,994			15			—			—			1,283			15,952

Interest		1,810			2,752			579			2,232			—			—			—			540			7,913
Depreciation and amortization		895			1,051			976			1,229			—			—			—			661			4,812

NET INCOME	$	807		$	900		$	890		$	533		$	15		$	—		$	—		$	82		$	3,227

BXP’s share of net income	$	404		$	459		$	311		$	133		$	7		$	—		$	—		$	21		$	1,335
BXP’s share of depreciation & amortization		448			536			341			307			—			—			—			165			1,797

BXP’s share of Funds from Operations (FFO)	$	852		$	995		$	652		$	440		$	7		$	—		$	—		$	186		$	3,132

(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. Information presented includes costs which relate to the organization and operations of the Value-Added Fund.

(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 $ 3,421 for the three months ended March 31, 2005.

Boston Properties, Inc.

First Quarter 2005

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%)*	$	561		$	901		$	978		$	1,061		$	1,152		$	63,436		$	68,089
Market Square North (50%)*		626			1,001			1,080			1,167			1,260			41,549			46,683
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) *		—			1,577			1,828			1,785			3,300			—			8,490	(2)

	$	1,187		$	3,479		$	23,136		$	4,567		$	6,347		$	146,296		$	185,012

Weighted Average Rate (2)		7.95	%		7.95	%		4.25	%		7.40	%		5.92	%		7.22	%		6.84	%

% of Total Debt		0.64	%		1.88	%		12.51	%		2.47	%		3.43	%		79.07	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	12.54	%	3.96	%	2.7 years
Fixed Rate Debt	87.46	%	7.25	%	6.8 years

Total Debt	100.00	%	6.84	%	6.3 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)	Approximately $3.3 million represents construction loan financing which matures in 2009. The remaining amount represents a seller financed non-interest bearing purchase money mortgage, the weighted-average interest rates exclude the impact of this loan.

Boston Properties, Inc.

First Quarter 2005

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%. The investment in the Value-Added Fund is 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

Mortgage

Payable (1)

Total Equity (1)

Worldgate Plaza, Herndon, VA

322,328

75.00

22.86

14,250

(2)

5,453

Results of Operations

(unaudited and in thousands)

for the three months ended March 31, 2005


	Worldgate Plaza
REVENUE
Total revenue	$	2,056	(3)

EXPENSES
Operating		625

SUBTOTAL		1,431

Interest		540
Depreciation and amortization		661

NET INCOME	$	230

BXP’s share of net income	$	57
BXP’s share of depreciation & amortization		165

BXP’s share of Funds from Operations (FFO)	$	222

(1)	Represents the Company’s share.

(2)	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. As of March 31, 2005, the interest rate was 3.58%.

(3)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) decreased revenue by $92 or the three months ended March 31, 2005.

Boston Properties, Inc.

First Quarter 2005

PORTFOLIO OVERVIEW

Rentable Square Footage and Percentage of Net Operating Income of In-Service Properties⁽¹⁾by Location and Type of Property for the Quarter Ended March 31, 2005⁽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	7,756,612	(4)	21.0	%	545,206		0.7	%	152,009		—	8,453,827		25.68	%	0.8	%	22.5	%
Greater Washington	7,273,078	(5)	16.6	%	858,583		1.3	%	—		—	8,131,661		24.70	%	—		17.9	%
Greater San Francisco	4,682,475		13.6	%	—		—		—		—	4,682,475		14.22	%	—		13.6	%
Midtown Manhattan	7,781,272		38.2	%	—		—		—		—	7,781,272		23.64	%	—		38.2	%
Princeton/East Brunswick, NJ	2,319,272		4.3	%	—		—		—		—	2,319,272		7.05	%	—		4.3	%
Baltimore, MD	639,149		1.7	%	—		—		—		—	639,149		1.94	%	—		1.7	%
Richmond, VA	909,998		1.8	%	—		—		—		—	909,998		2.76	%	—		1.8	%

	31,361,856		97.2	%	1,403,789		2.0	%	152,009		—	32,917,654		100.00	%	0.8	%	100.0	%

% of Total	95.27	%			4.26	%			0.46	%		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	14.9	%	7.6	%	22.5	%
Greater Washington	5.3	%	12.7	%	17.9	%
Greater San Francisco	12.4	%	1.2	%	13.6	%
Midtown Manhattan	38.2	%	—		38.2	%
Princeton/East Brunswick, NJ	—		4.3	%	4.3	%
Baltimore, MD	1.7	%	—		1.7	%
Richmond, VA	1.8	%	—		1.8	%

Total	74.2	%	25.8	%	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 344,187 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, 401,279 square feet at Market Square North which is 50% owned by Boston Properties. and 539,229 square feet at 901 New York Avenue which is 25% owned by Boston Properties.

Boston Properties, Inc.

First Quarter 2005

In-Service Property Listing

as of March 31, 2005


	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	%	$	38.39	Y		CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	853,686	100.0	%		49.99	N		CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,389	85.4	%		33.78	Y		CBD
The Shops at the Prudential Center	CBD Boston MA	1	522,450	89.2	%		59.54	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	344,187	76.1	%		54.74	Y		CBD
One Cambridge Center	East Cambridge MA	1	215,385	84.5	%		40.05	N		CBD
Three Cambridge Center	East Cambridge MA	1	107,484	100.0	%		32.65	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	%		34.98	Y		CBD
Eleven Cambridge Center	East Cambridge MA	1	79,616	96.7	%		42.93	N		CBD
University Place	Mid-Cambridge MA	1	195,282	100.0	%		35.56	Y		CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	525,894	80.3	%		29.41	Y		S
Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	63.7	%		25.57	N		S
(2) 140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.26	Y		S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	84.8	%		25.23	N		S
195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		48.71	N		S
200 West Street	Route 128 Mass Turnpike MA	1	248,048	100.0	%		35.59	N		S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	86.1	%		31.34	N		S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	75.4	%		21.28	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	%		29.39	N		S
91 Hartwell Avenue	Route 128 Northwest MA	1	121,424	100.0	%		31.07	Y		S
92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		51.56	N		S
100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		20.32	N		S
33 Hayden Avenue	Route 128 Northwest MA	1	80,128	43.7	%		30.23	N		S
Lexington Office Park	Route 128 Northwest MA	2	166,689	86.2	%		23.85	N		S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		31.35	Y		S
181 Spring Street	Route 128 Northwest MA	1	53,595	59.0	%		32.12	N		S
201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		35.33	N		S
40 Shattuck Road	Route 128 Northwest MA	1	120,000	95.6	%		26.40	N		S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		21.27	N		S
Newport Office Park	Route 128 South MA	1	170,012	89.0	%		22.40	N		S

		40	7,756,612	91.7	%	$	37.12

Office/Technical
Fourteen Cambridge Center	East Cambridge MA	1	67,362	100.0	%		22.00	N		CBD
Bedford Business Park	Route 128 Northwest MA	2	383,704	100.0	%		15.88	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	%		11.44	N		S

		5	545,206	100.0	%	$	15.96

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

Total Greater Boston:		46	8,453,827	90.6	%	$	35.61

Boston Properties, Inc.

First Quarter 2005

In-Service Property Listing (continued)

as of March 31, 2005


	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	%	$	37.91	Y	CBD
500 E Street, N. W.	Southwest Washington DC	1	246,057	100.0	%		34.26	N	CBD
Metropolitan Square (51% ownership)	East End Washington DC	1	585,446	99.9	%		42.93	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	%		48.54	Y	CBD
(2) 901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	86.1	%		44.24	Y	CBD
1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		41.47	N	CBD
(2) 1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		48.67	Y	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		37.33	Y	CBD
Democracy Center	Montgomery County MD	3	681,248	84.8	%		32.50	Y	S
Montvale Center	Montgomery County MD	1	120,507	95.3	%		25.23	Y	S
2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		35.59	N	S
Orbital Sciences 1,2&3	Loudoun County	3	337,228	100.0	%		24.66	N	S
One Freedom Square	Fairfax County VA	1	410,718	100.0	%		33.41	Y	S
Two Freedom Square	Fairfax County VA	1	421,676	99.4	%		35.78	N	S
One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		25.04	N	S
Two Reston Overlook	Fairfax County VA	1	133,207	94.8	%		31.87	N	S
One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		36.33	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	%		30.25	Y	S
12300 Sunrise Valley	Fairfax County VA	1	255,244	100.0	%		33.14	N	S
12310 Sunrise Valley	Fairfax County VA	1	263,870	100.0	%		31.65	N	S

		29	7,273,078	97.3	%	$	36.14

Office/Technical
Broad Run Business Park	Loudoun County	1	128,646	73.7	%		19.95	N	S
7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		17.91	N	S
7451 Boston Boulevard	Fairfax County VA	1	47,001	100.0	%		20.37	N	S
7450 Boston Boulevard	Fairfax County VA	1	62,402	100.0	%		20.59	N	S
7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		13.99	N	S
8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		16.08	N	S
7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.84	N	S
7501 Boston Boulevard	Fairfax County VA	1	75,756	100.0	%		23.74	N	S
7601 Boston Boulevard	Fairfax County VA	1	103,750	100.0	%		14.27	N	S
7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		19.41	N	S
8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		11.11	N	S
7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		24.00	N	S

		12	858,583	96.1	%	$	17.65

Total Greater Washington:		41	8,131,661	97.2	%	$	34.21

Boston Properties, Inc.

First Quarter 2005

In-Service Property Listing (continued)

as of March 31, 2005


	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	1,013,731	100.0	%	$	66.41	Y	CBD
280 Park Avenue	Park Avenue NY	1	1,176,391	100.0	%		59.52	Y	CBD
Citigroup Center	Park Avenue NY	1	1,569,022	94.4	%		63.03	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,681,641	100.0	%		73.32	N	CBD
(2) Times Square Tower	Times Square NY	1	1,238,708	86.0	%		59.04	Y	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.95	N	CBD

	Total Midtown Manhattan:	6	7,781,272	96.6	%	$	63.49

Princeton/East Brunswick, NJ
Office
101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	28.58	Y	S
104 Carnegie Center	Princeton NJ	1	102,830	87.9	%		32.11	N	S
105 Carnegie Center	Princeton NJ	1	70,029	71.5	%		28.18	N	S
201 Carnegie Center	Princeton NJ	—	6,500	100.0	%		26.25	N	S
202 Carnegie Center	Princeton NJ	1	128,705	87.3	%		32.77	Y	S
206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		29.87	Y	S
210 Carnegie Center	Princeton NJ	1	161,863	90.7	%		30.43	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	%		33.43	N	S
214 Carnegie Center	Princeton NJ	1	150,774	75.5	%		30.29	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		33.08	N	S
502 Carnegie Center	Princeton NJ	1	116,374	100.0	%		33.32	N	S
504 Carnegie Center	Princeton NJ	1	121,990	100.0	%		30.24	Y	S
506 Carnegie Center	Princeton NJ	1	136,213	100.0	%		31.50	Y	S
508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		28.77	Y	S
510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		29.24	Y	S
One Tower Center	East Brunswick NJ	1	412,222	71.1	%		35.95	N	S

	Total Princeton/East Brunswick, NJ:	16	2,319,272	90.4	%	$	31.56

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	825,146	87.2	%	$	40.42	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	776,802	86.8	%		46.74	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	766,085	71.6	%		40.34	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	933,771	93.6	%		60.78	Y	CBD
(3) Federal Reserve	CBD San Francisco CA	1	149,592	0.8	%		—	Y	CBD
West Tower	CBD San Francisco CA	1	468,861	77.3	%		42.81	Y	CBD
611 Gateway	South San Francisco CA	1	256,302	100.0	%		31.49	N	S
601 and 651 Gateway	South San Francisco CA	2	505,916	48.3	%		31.29	Y	S

Total Greater San Francisco:		9	4,682,475	78.6	%	$	45.39

Boston Properties, Inc.

First Quarter 2005

In-Service Property Listing (continued)

as of March 31, 2005


	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	639,149	90.9	%	$	30.32	Y	CBD

Richmond, VA
Office
Riverfront Plaza	Richmond VA	1	909,998	91.5	%	$	23.89	Y	CBD

	Total In-Service Properties:	120	32,917,654	92.0	%	$	42.65

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

(2)	Not included in same property analysis.

(3)	On April 20, 2005 the property was sold. Including the sale of this property, Greater San Francisco and the Total Portfolio percentages leased would be 81.2% and 92.4%, respectively as of March 31, 2005.

Boston Properties, Inc.

First Quarter 2005

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED


	Tenant	Sq. Ft.		% of Portfolio
1	U.S. Government	1,676,747		5.09	%
2	Citibank, N.A.	1,218,337		3.70	%
3	Ernst and Young	1,064,939		3.24	%
4	Shearman & Sterling	585,808		1.78	%
5	Lockheed Martin Corporation	568,265		1.73	%
6	Gillette Company	484,051		1.47	%
7	Parametric Technology Corp.	470,987		1.43	%
8	Lehman Brothers	436,723		1.33	%
9	Wachovia	395,651		1.20	%
10	Washington Group International	365,245		1.11	%
11	Finnegan Henderson Farabow	349,146	(1)	1.06	%
12	Deutsche Bank Trust	344,886	(2)	1.05	%
13	Kirkland & Ellis	340,811		1.04	%
14	Orbital Sciences Corporation	337,228		1.02	%
15	T. Rowe Price Associates, Inc.	332,017		1.01	%
16	Northrop Grumman	326,385		0.99	%
17	O’ Melveny & Myers	318,620		0.97	%
18	Ann Taylor	318,567		0.97	%
19	Akin Gump Strauss Hauer & Feld	298,870		0.91	%
20	Hunton & Williams	297,934		0.91	%

	Total % of Portfolio Square Feet			31.99	%
	Total % of Portfolio Revenue			34.95	%

Major Future Signed Deals


Tenant	Property	Sq. Ft.
DLA Piper Rudnick Gray Cary US LLP	505 9th Street	231,748	(3)
Massachusetts Institute of Technology	Seven Cambridge Center	231,028	(3)
Genentech	651 Gateway	196,213	(4)
Lockheed Martin Corporation	12290 Sunrise Valley	182,000	(3)

(1)	Represents space in a property in which Boston Properties has a 25% interest.

(2)	Includes 162,165 square feet of space in a property in which Boston Properties has a 51% interest.

(3)	Property is currently in development.

(4)	In addition, Genentech currently occupies 260,515 square feet included in the in-service portfolio.

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.

First Quarter 2005

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	1,150,086	$	43,657,323	$	37.96	$	44,890,777	$	39.03	3.83	%
2006	1,761,629		74,017,746		42.02		74,445,216		42.26	5.86	%
2007	2,034,023		80,016,871		39.34		80,820,163		39.73	6.77	%
2008	1,580,561		66,854,273		42.30		68,953,091		43.63	5.26	%
2009	2,756,520		105,927,767		38.43		113,604,863		41.21	9.17	%
2010	1,744,252		79,269,318		45.45		85,430,860		48.98	5.80	%
2011	2,515,255		110,251,731		43.83		121,631,172		48.36	8.37	%
2012	2,508,471		118,020,634		47.05		126,874,486		50.58	8.35	%
2013	817,975		27,065,891		33.09		29,937,838		36.60	2.72	%
2014	1,850,585		67,089,456		36.25		74,549,967		40.28	6.16	%
Thereafter	9,411,604		442,705,526		47.04		529,113,505		56.22	31.31	%

Occupancy By Location*


	CBD				Suburban				Total
Location	31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04
Greater Boston	93.2	%	93.8	%	89.8	%	85.6	%	91.7	%	90.2	%
Greater Washington	97.5	%	99.4	%	97.2	%	96.1	%	97.3	%	97.3	%
Midtown Manhattan	96.6	%	98.9	%	—		—		96.6	%	98.9	%
Baltimore, MD	90.9	%	96.0	%	—		—		90.9	%	96.0	%
Princeton/East Brunswick, NJ	—		—		90.4	%	92.5	%	90.4	%	92.5	%
Richmond, VA	91.5	%	91.7	%	—		—		91.5	%	91.7	%
Greater San Francisco	81.1	%	90.1	%	65.7	%	35.5	%	78.6	%	81.2	%

Total Portfolio	92.7	%	95.5	%	91.1	%	87.6	%	92.2	%	92.6	%

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

Boston Properties, Inc.

First Quarter 2005

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	$	1,009,139	$	16.47	$	1,009,139	$	16.47	4.36	%
2006	287,104		4,098,171		14.27		4,112,405		14.32	20.45	%
2007	321,900		5,810,150		18.05		6,023,550		18.71	22.93	%
2008	39,380		816,552		20.74		845,654		21.47	2.81	%
2009	28,702		713,571		24.86		739,557		25.77	2.04	%
2010	132,510		1,770,309		13.36		2,124,656		16.03	9.44	%
2011	137,321		2,466,429		17.96		2,566,429		18.69	9.78	%
2012	72,362		1,633,520		22.57		1,815,085		25.08	5.15	%
2013	—		—		—		—		—	—
2014	274,821		4,849,906		17.65		5,638,541		20.52	19.58	%
Thereafter	—		—		—		—		—	—

Occupancy By Location

CBD

Suburban

Total

Location

31-Mar-05

31-Mar-04

31-Mar-05

31-Mar-04

31-Mar-05

31-Mar-04

Greater Boston

100.0

Greater Washington

n/a

96.1

91.7

96.1

91.7

Midtown Manhattan

n/a

Baltimore, MD

n/a

Princeton/East Brunswick, NJ n/a

n/a

Richmond, VA

n/a

Greater San Francisco

n/a

Total Portfolio

100.0

97.5

94.6

97.6

94.8

Boston Properties, Inc.

First Quarter 2005

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-Mar-05

31-Mar-04

31-Mar-05

31-Mar-04

31-Mar-05

31-Mar-04

Greater Boston

n/a

—

Greater Washington

n/a

Midtown Manhattan

n/a

Baltimore, MD

n/a

Princeton/East Brunswick, NJ n/a

n/a

Richmond, VA

n/a

Greater San Francisco

n/a

100.0

n/a

100.0

Bucks County, PA

n/a

100.0

n/a

100.0

Total Portfolio

n/a

—

56.9

—

56.9

Boston Properties, Inc.

First Quarter 2005

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	40,680	$	3,099,335	$	76.19	(1)	$	3,454,631	$	84.92	(1)	3.13	%
2006	67,123		3,999,923		59.59	(1)		4,024,751		59.96	(1)	5.16	%
2007	39,570		2,192,553		55.41			2,239,048		56.58		3.04	%
2008	72,032		3,672,511		50.98			3,777,256		52.44		5.54	%
2009	66,928		3,310,323		49.46			3,421,958		51.13		5.15	%
2010	99,681		3,730,805		37.43			4,057,980		40.71		7.67	%
2011	43,217		2,920,143		67.57			3,272,778		75.73		3.32	%
2012	101,697		4,966,851		48.84			5,512,791		54.21		7.82	%
2013	67,918		5,761,516		84.83			6,280,956		92.48		5.22	%
2014	59,091		3,894,377		65.90			4,556,636		77.11		4.54	%
Thereafter	642,472		33,963,423		52.86			41,382,797		64.41		49.41	%

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $43.32 and $44.20 in 2005 and $54.76 and $54.91 in 2006.

Boston Properties, Inc.

First Quarter 2005

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	1,252,040	$	47,765,796	$	38.15	$	49,354,546	$	39.42	3.8	%
2006	2,115,856		82,115,840		38.81		82,582,372		39.03	6.4	%
2007	2,395,493		88,019,574		36.74		89,082,761		37.19	7.3	%
2008	1,691,973		71,343,336		42.17		73,576,002		43.49	5.1	%
2009	2,852,150		109,951,662		38.55		117,766,378		41.29	8.7	%
2010	1,976,443		84,770,432		42.89		91,613,497		46.35	6.0	%
2011	2,695,793		115,638,303		42.90		127,470,379		47.28	8.2	%
2012	2,682,530		124,621,006		46.46		134,202,362		50.03	8.1	%
2013	885,893		32,827,407		37.06		36,218,794		40.88	2.7	%
2014	2,184,497		75,833,738		34.71		84,745,143		38.79	6.6	%
Thereafter	10,054,076		476,668,949		47.41		570,496,302		56.74	30.5	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04
Greater Boston	93.3	%	93.8	%	87.6	%	84.1	%	90.6	%	89.2	%
Greater Washington	97.5	%	99.4	%	97.0	%	95.3	%	97.2	%	96.6	%
Midtown Manhattan	96.6	%	98.9	%	—		—		96.6	%	98.9	%
Baltimore, MD	90.9	%	96.0	%	—		—		90.9	%	96.0	%
Princeton/East Brunswick, NJ	—		—		90.4	%	92.5	%	90.4	%	92.5	%
Richmond, VA	91.5	%	91.7	%	—		—		91.5	%	91.7	%
Greater San Francisco	81.1	%	90.1	%	65.7	%	38.7	%	78.6	%	81.3	%
Bucks County, PA	—		—		—		100.0	%	—		100.0	%

Total Portfolio	92.7	%	95.5	%	90.7	%	87.5	%	92.0	%	92.3	%

Boston Properties, Inc.

First Quarter 2005

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	614,036	$	24,545,202	$	39.97	$	24,621,879	$	40.10	—	$	—	$	—	$	—	$	—
2006	635,714		20,200,960		31.78		20,224,485		31.81	253,704		3,532,734		13.92		3,532,734		13.92
2007	515,548		19,421,585		37.67		19,596,035		38.01	144,140		2,018,869		14.01		2,218,009		15.39
2008	549,774		17,160,841		31.21		17,140,513		31.18	—		—		—		—		—
2009	1,207,887		41,477,506		34.34		45,444,840		37.62	—		—		—		—		—
2010	306,319		9,366,477		30.58		9,868,484		32.22	—		—		—		—		—
2011	905,140		34,000,661		37.56		37,931,841		41.91	80,000		1,664,635		20.81		1,764,636		22.06
2012	631,268		23,376,361		37.03		25,041,507		39.67	72,362		1,633,520		22.57		1,815,085		25.08
2013	255,475		11,398,138		44.62		12,396,279		48.52	—		—		—		—		—
2014	404,553		13,915,750		34.40		15,524,373		38.37	—		—		—		—		—
Thereafter	456,030		17,177,852		37.67		21,022,208		46.10	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases			Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	20,738	$	2,099,684	(1)	$	101.25	$	2,454,980	$	118.38	(1)
2006	—		—		—		—		—	18,788		1,719,458	(1)		91.52		1,734,158		92.30	(1)
2007	—		—		—		—		—	4,001		435,896			108.95		436,192		109.02
2008	—		—		—		—		—	5,467		546,859			100.03		546,859		100.03
2009	—		—		—		—		—	12,689		1,229,594			96.90		1,248,802		98.42
2010	—		—		—		—		—	41,531		1,102,911			26.56		1,105,101		26.61
2011	—		—		—		—		—	13,527		875,337			64.71		909,227		67.22
2012	—		—		—		—		—	52,949		2,016,315			38.08		2,083,189		39.34
2013	—		—		—		—		—	23,705		2,854,452			120.42		3,002,041		126.64
2014	—		—		—		—		—	19,902		1,968,883			98.93		2,205,743		110.83
Thereafter	—		—		—		—		—	432,356		18,970,893			43.88		21,534,296		49.81

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $36.76 and $38.50 in 2005 and $74.56 and $74.56 in 2006.

Boston Properties, Inc.

First Quarter 2005

IN-SERVICE GREATER BOSTON PROPERTIES

Quarterly Lease Expirations - Greater Boston


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases			Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—		$	—	$	—	$	—
Q2 2005	191,253		5,746,057		30.04		5,822,735		30.45	—		—			—		—		—
Q3 2005	143,070		7,641,477		53.41		7,641,477		53.41	—		—			—		—		—
Q4 2005	279,713		11,157,667		39.89		11,157,667		39.89	—		—			—		—		—

Total 2005	614,036	$	24,545,202	$	39.97	$	24,621,879	$	40.10	—		—			—		—		—

Q1 2006	27,051	$	940,989	$	34.79	$	940,989	$	34.79	—	$	—		$	—	$	—	$	—
Q2 2006	93,161		3,942,329		42.32		3,942,329		42.32	—		—			—		—		—
Q3 2006	366,192		11,336,684		30.96		11,336,684		30.96	253,704		3,532,734			13.92		3,532,734		13.92
Q4 2006	149,310		3,980,958		26.66		4,004,483		26.82	—		—			—		—		—

Total 2006	635,714	$	20,200,960	$	31.78	$	20,224,485	$	31.81	253,704		3,532,734			13.92		3,532,734		13.92


	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
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—		$	—	$	—	$	—
Q2 2005	—		—		—		—		—	1,486		653,423			439.72		768,023		516.84
Q3 2005	—		—		—		—		—	5		277,008			55,401.60		301,008		60,201.60
Q4 2005	—		—		—		—		—	19,247		1,169,253			60.75		1,385,949		72.01

Total 2005	—		—	$	—	$	—	$	—	20,738	$	2,099,684	(1)	$	101.25	$	2,454,980	$	118.38	(1)

Q1 2006	—	$	—	$	—		—	$	—	13,110	$	1,141,450		$	87.07	$	1,150,150	$	87.73
Q2 2006	—		—		—		—		—	5,488		337,004			61.41		343,004		62.50
Q3 2006	—		—		—		—		—	—		—			—		—		—
Q4 2006	—		—		—		—		—	190		241,004			1,268.44		241,004		1,268.44

Total 2006	—	$	—	$	—	$	—	$	—	18,788	$	1,719,458	(1)	$	91.52	$	1,734,158	$	92.30	(1)

(1) Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $36.76 and $38.50 in 2005 and $74.56 and $74.56 in 2006.

Boston Properties, Inc.

First Quarter 2005

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	198,192	$	6,987,738	$	35.26	$	6,948,966	$	35.06	61,274	$	1,009,139	$	16.47	$	1,009,139	$	16.47
2006	251,026		7,846,945		31.26		8,037,501		32.02	33,400		565,437		16.93		579,671		17.36
2007	362,916		12,470,533		34.36		12,715,645		35.04	177,760		3,791,281		21.33		3,805,541		21.41
2008	217,842		7,338,014		33.69		7,887,330		36.21	39,380		816,552		20.74		845,654		21.47
2009	848,303		33,210,250		39.15		35,220,527		41.52	28,702		713,571		24.86		739,557		25.77
2010	635,817		26,713,747		42.01		29,951,666		47.11	132,510		1,770,309		13.36		2,124,656		16.03
2011	722,047		24,296,289		33.65		27,847,095		38.57	57,321		801,794		13.99		801,794		13.99
2012	694,077		25,242,196		36.37		29,677,133		42.76	—		—		—		—		—
2013	59,801		1,666,934		27.87		2,001,579		33.47	—		—		—		—		—
2014	480,782		17,102,965		35.57		19,285,627		40.11	274,821		4,849,906		17.65		5,638,541		20.52
Thereafter	2,424,267		88,164,227		36.37		102,767,287		42.39	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	1,084	$	54,759	$	50.52	$	54,759	$	50.52
2006	—		—		—		—		—	11,796		407,001		34.50		410,272		34.78
2007	—		—		—		—		—	12,610		379,878		30.13		392,096		31.09
2008	—		—		—		—		—	18,152		765,774		42.19		796,861		43.90
2009	—		—		—		—		—	23,554		727,203		30.87		789,146		33.50
2010	—		—		—		—		—	18,994		694,345		36.56		787,693		41.47
2011	—		—		—		—		—	11,221		478,849		42.67		534,623		47.64
2012	—		—		—		—		—	7,519		165,547		22.02		192,976		25.67
2013	—		—		—		—		—	13,377		595,710		44.53		727,884		54.41
2014	—		—		—		—		—	20,753		453,489		21.85		564,204		27.19
Thereafter	—		—		—		—		—	42,044		1,393,196		33.14		2,008,151		47.76

Boston Properties, Inc.

First Quarter 2005

IN-SERVICE GREATER WASHINGTON PROPERTIES

Quarterly Lease Expirations - Greater Washington


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	59,085		1,782,507		30.17		1,696,107		28.71	—		—		—		—		—
Q3 2005	56,337		2,251,109		39.96		2,251,109		39.96	16,806		252,583		15.03		252,583		15.03
Q4 2005	82,770		2,954,123		35.69		3,001,751		36.27	44,468		756,556		17.01		756,556		17.01

Total 2005	198,192	$	6,987,738	$	35.26	$	6,948,966	$	35.06	61,274	$	1,009,139	$	16.47	$	1,009,139	$	16.47

Q1 2006	76,387	$	2,455,502	$	32.15	$	2,521,578	$	33.01	—	$	—	$	—	$	—	$	—
Q2 2006	34,213		1,271,723		37.17		1,299,293		37.98	—		—		—		—		—
Q3 2006	123,619		3,706,102		29.98		3,788,485		30.65	33,400		565,437		16.93		579,671		17.36
Q4 2006	16,807		413,618		24.61		428,145		25.47	—		—		—		—		—

Total 2006	251,026	$	7,846,945	$	31.26	$	8,037,501	$	32.02	33,400	$	565,437	$	16.93	$	579,671	$	17.36


	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	—		—		—		—		—	1,084		54,759		50.52		54,759		50.52
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	—	$	—	$	—		—	$	—	1,084		54,759	$	50.52		54,759	$	50.52

Q1 2006	—	$	—	$	—	$	—	$	—	4,241	$	106,025	$	25.00	$	106,025	$	25.00
Q2 2006	—		—		—		—		—	4,238		178,945		42.22		182,093		42.97
Q3 2006	—		—		—		—		—	3,309		121,991		36.87		122,114		36.90
Q4 2006	—		—		—		—		—	8		40		5.00		40		5.00

Total 2006	—	$	—	$	—	$	—	$	—	11,796	$	407,001	$	34.50		410,272	$	34.78

Boston Properties, Inc.

First Quarter 2005

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Lease Expirations - Greater San Francisco


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	121,689	$	4,679,574	$	38.46	$	4,848,378	$	39.84	—	$	—	$	—	$	—	$	—
2006	576,522		29,250,776		50.74		29,415,966		51.02	—		—		—		—		—
2007	387,254		18,908,034		48.83		18,862,658		48.71	—		—		—		—		—
2008	281,714		10,588,182		37.58		11,114,742		39.45	—		—		—		—		—
2009	177,066		8,684,811		49.05		8,839,757		49.92	—		—		—		—		—
2010	230,962		12,666,333		54.84		13,730,289		59.45	—		—		—		—		—
2011	213,679		18,621,375		87.15		18,901,772		88.46	—		—		—		—		—
2012	141,395		5,967,691		42.21		6,475,443		45.80	—		—		—		—		—
2013	113,211		4,034,632		35.64		4,526,529		39.98	—		—		—		—		—
2014	487,402		16,264,851		33.37		18,164,784		37.27	—		—		—		—		—
Thereafter	1,119,987		41,461,962		37.02		48,813,858		43.58	—		—		—		—		—

	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	18,447	$	889,201	$	48.20	$	889,201	$	48.20
2006	—		—		—		—		—	20,964		1,150,407		54.88		1,153,861		55.04
2007	—		—		—		—		—	16,259		1,104,757		67.95		1,138,738		70.04
2008	—		—		—		—		—	39,524		1,994,914		50.47		2,038,484		51.58
2009	—		—		—		—		—	30,685		1,353,527		44.11		1,384,011		45.10
2010	—		—		—		—		—	34,126		1,555,927		45.59		1,737,564		50.92
2011	—		—		—		—		—	3,474		147,655		42.50		222,376		64.01
2012	—		—		—		—		—	35,590		2,098,592		58.97		2,406,665		67.62
2013	—		—		—		—		—	8,408		579,797		68.96		627,660		74.65
2014	—		—		—		—		—	10,338		630,185		60.96		713,912		69.06
Thereafter	—		—		—		—		—	22,458		1,318,284		58.70		1,513,863		67.41

Boston Properties, Inc.

First Quarter 2005

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES

Quarterly Lease Expirations - Greater San Francisco


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	21,453		733,190		34.18		733,190		34.18	—		—		—		—		—
Q3 2005	54,828		2,454,270		44.76		2,623,074		47.84	—		—		—		—		—
Q4 2005	45,408		1,492,114		32.86		1,492,114		32.86	—		—		—		—		—

Total 2005	121,689	$	4,679,574	$	38.46	$	4,848,378	$	39.84	—		—		—		—		—

Q1 2006	159,720	$	6,309,107	$	39.50	$	6,394,369	$	40.03	—	$	—	$	—	$	—	$	—
Q2 2006	101,076		7,706,155		76.24		7,743,171		76.61	—		—		—		—		—
Q3 2006	107,608		5,080,938		47.22		5,114,850		47.53	—		—		—		—		—
Q4 2006	208,118		10,154,576		48.79		10,163,576		48.84	—		—		—		—		—

Total 2006	576,522	$	29,250,776	$	50.74	$	29,415,966	$	51.02	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	3,260		193,576		59.38		193,576		59.38
Q3 2005	—		—		—		—		—	11,794		550,666		46.69		550,666		46.69
Q4 2005	—		—		—		—		—	3,393		144,959		42.72		144,959		42.72

Total 2005	—	$	—	$	—	$	—	$	—	18,447	$	889,201	$	48.20	$	889,201	$	48.20

Q1 2006	—	$	—	$	—	$	—	$	—	4,596	$	460,648	$	100.23	$	460,648		100.23
Q2 2006	—		—		—		—		—	987		59,847		60.63		59,847		60.63
Q3 2006	—		—		—		—		—	809		94,460		116.76		97,914		121.03
Q4 2006	—		—		—		—		—	14,572		535,452		36.75		535,452		36.75

Total 2006	—		—		—		—		—	20,964	$	1,150,407	$	54.88	$	1,153,861	$	55.04

Boston Properties, Inc.

First Quarter 2005

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	10,533	$	810,028	$	76.90	$	810,028	$	76.90	—	$	—	$	—	$	—	$	—
2006	197,440		13,429,629		68.02		13,429,629		68.02	—		—		—		—		—
2007	151,089		9,741,566		64.48		9,754,780		64.56	—		—		—		—		—
2008	481,196		30,385,442		63.15		30,968,761		64.36	—		—		—		—		—
2009	176,935		11,908,248		67.30		12,734,163		71.97	—		—		—		—		—
2010	324,722		22,691,255		69.88		23,468,338		72.27	—		—		—		—		—
2011	404,472		24,649,869		60.94		27,718,624		68.53	—		—		—		—		—
2012	982,156		61,544,864		62.66		63,440,127		64.59	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	193,274		11,358,463		58.77		12,244,940		63.36	—		—		—		—		—
Thereafter	4,426,469		269,446,621		60.87		325,197,818		73.47	—		—		—		—		—

	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	411	$	55,691	$	135.50	$	55,691	$	135.50
2006	—		—		—		—		—	15,575		723,058		46.42		726,461		46.64
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	3,232		168,270		52.06		172,047		53.23
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	5,030		377,623		75.07		427,623		85.01
2011	—		—		—		—		—	14,995		1,418,302		94.58		1,606,552		107.14
2012	—		—		—		—		—	5,639		686,398		121.72		829,961		147.18
2013	—		—		—		—		—	15,896		1,476,236		92.87		1,650,943		103.86
2014	—		—		—		—		—	8,098		841,819		103.95		1,072,777		132.47
Thereafter	—		—		—		—		—	128,840		11,989,495		93.06		15,939,819		123.72

Boston Properties, Inc.

First Quarter 2005

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	10,533		810,028		76.90		810,028		76.90	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

Total 2005	10,533	$	810,028	$	76.90	$	810,028	$	76.90	—		—		—		—		—

Q1 2006	30,010	$	2,167,130	$	72.21	$	2,167,130	$	72.21	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	30,100		1,994,235		66.25		1,994,235		66.25	—		—		—		—		—
Q4 2006	137,330		9,268,265		67.49		9,268,265		67.49	—		—		—		—		—

Total 2006	197,440	$	13,429,629	$	68.02	$	13,429,629	$	68.02	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	411		55,691		135.50		55,691		135.50

Total 2005	—	$	—	$	—	$	—	$	—	411	$	55,691	$	135.50	$	55,691	$	135.50

Q1 2006	—	$	—	$	—		—	$	—	—	$	—	$	—	$	—		—
Q2 2006	—		—		—		—		—	350		25,852		73.86		25,852	$	73.86
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	—		—		—		—		—	15,225		697,206		45.79		700,608		46.02

Total 2006	—	$	—	$	—	$	—	$	—	15,575	$	723,058	$	46.42	$	726,461	$	46.64

Boston Properties, Inc.

First Quarter 2005

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	145,293	$	5,147,281	$	35.43	$	6,162,237	$	42.41	—	$	—	$	—	$	—	$	—
2006	61,889		2,207,931		35.68		2,232,752		36.08	—		—		—		—		—
2007	523,015		16,262,569		31.09		16,736,512		32.00	—		—		—		—		—
2008	33,802		990,865		29.31		1,390,859		41.15	—		—		—		—		—
2009	267,460		8,611,049		32.20		9,284,601		34.71	—		—		—		—		—
2010	183,713		6,166,721		33.57		6,488,901		35.32	—		—		—		—		—
2011	269,917		8,683,537		32.17		9,231,840		34.20	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	103,080		3,250,174		31.53		3,584,283		34.77	—		—		—		—		—
2014	284,574		8,447,427		29.68		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		6,779,089		30.33		7,300,447		32.66	—		—		—		—		—

	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2006	—		—		—		—		—	—		—		—		—		—
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	—		—		—		—		—

Boston Properties, Inc.

First Quarter 2005

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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	76,700		2,752,169		35.88		3,767,126		49.12	—		—		—		—		—
Q3 2005	30,733		1,080,658		35.16		1,080,658		35.16	—		—		—		—		—
Q4 2005	37,860		1,314,453		34.72		1,314,453		34.72	—		—		—		—		—

Total 2005	145,293	$	5,147,281	$	35.43	$	6,162,237	$	42.41	—		—		—		—		—

Q1 2006	8,277	$	289,961	$	35.03	$	296,092	$	35.77	—	$	—	$	—	$	—	$	—
Q2 2006	28,238		1,035,567		36.67		1,037,998		36.76	—		—		—		—		—
Q3 2006	4,251		165,750		38.99		165,750		38.99	—		—		—		—		—
Q4 2006	21,123		716,654		33.93		732,912		34.70	—		—		—		—		—

Total 2006	61,889	$	2,207,931	$	35.68	$	2,232,752	$	36.08	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

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

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

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

Boston Properties, Inc.

First Quarter 2005

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	60,343	$	1,487,501	$	24.65	$	1,499,289	$	24.85	—	$	—	$	—	$	—	$	—
2006	39,038		1,081,504		27.70		1,104,882		28.30	—		—		—		—		—
2007	94,201		3,212,584		34.10		3,154,532		33.49	—		—		—		—		—
2008	16,233		390,929		24.08		450,886		27.78	—		—		—		—		—
2009	78,869		2,035,903		25.81		2,080,975		26.39	—		—		—		—		—
2010	62,719		1,664,784		26.54		1,923,182		30.66	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	54,075		1,706,268		31.55		2,047,398		37.86	—		—		—		—		—
2013	286,408		6,716,013		23.45		7,429,169		25.94	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	761,348		19,675,776		25.84		24,011,888		31.54	—		—		—		—		—

	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		272,022		40.60		272,022		40.60
2008	—		—		—		—		—	5,657		196,694		34.77		223,005		39.42
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	6,532		255,321		39.09		272,428		41.71
2014	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	16,774		291,556		17.38		386,668		23.05

Boston Properties, Inc.

First Quarter 2005

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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	15,627		416,368		26.64		416,368		26.64	—		—		—		—		—
Q3 2005	4,101		115,894		28.26		115,894		28.26	—		—		—		—		—
Q4 2005	40,615		955,239		23.52		967,027		23.81	—		—		—		—		—

Total 2005	60,343	$	1,487,501	$	24.65	$	1,499,289	$	24.85	—	$	—	$	—	$	—	$	—

Q1 2006	8,739	$	295,802	$	33.85	$	295,802	$	33.85	—	$	—	$	—	$	—	$	—
Q2 2006	15,307		395,910		25.86		403,696		26.37	—		—		—		—		—
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	14,992		389,792		26.00		405,384		27.04	—		—		—		—		—

Total 2006	39,038	$	1,081,504	$	27.70	$	1,104,882	$	28.30	—	$	—	$	—	$	—	$	—


	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	—		—		—		—		—	—		—		—		—		—

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

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

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

Boston Properties, Inc.

First Quarter 2005

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	395,731	$	20,343,716	(1)	$	51.41	$	20,724,130	(1)	$	52.37	60,603	$	2,485,169	$	41.01	$	2,491,023	$	41.10
2006	130,255	$	6,658,524	(2)		51.12	$	6,655,645	(2)		51.10	32,976	$	1,262,245	$	38.28	$	1,280,726	$	38.84
2007	158,618	$	8,176,652			51.55	$	8,228,402			51.88	275,734	$	9,622,928	$	34.90	$	9,713,473	$	35.23
2008	194,554	$	7,488,062			38.49	$	6,970,404			35.83	40,973	$	1,714,539	$	41.85	$	1,818,969	$	44.39
2009	774,951	$	28,231,663			36.43	$	31,179,148			40.23	836,126	$	32,940,782	$	39.40	$	34,902,762	$	41.74
2010	165,853	$	5,942,291			35.83	$	6,222,356			37.52	443,414	$	18,769,363	$	42.33	$	20,989,342	$	47.34
2011	459,832	$	23,963,259			52.11	$	26,898,552			58.50	193,856	$	8,425,737	$	43.46	$	9,601,873	$	49.53
2012	309,025	$	13,941,658			45.11	$	14,851,052			48.06	83,235	$	3,372,886	$	40.52	$	3,388,441	$	40.71
2013	279,180	$	14,252,590			51.05	$	15,398,320			55.16	1,702	$	92,095	$	54.11	$	112,525	$	66.11
2014	389,981	$	15,076,354			38.66	$	16,812,772			43.11	63,796	$	2,991,851	$	46.90	$	3,731,611	$	58.49
Thereafter	679,491	$	29,036,683			42.73	$	33,018,410			48.59	912,605	$	42,094,444	$	46.13	$	52,013,631	$	56.99

	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	10,944	$	865,718		$	79.10	$	865,718		$	79.10	102,388	$	4,438,543	$	43.35	$	4,438,543	$	43.35
2006	213,015		14,152,688			66.44		14,156,090			66.46	560,917	$	28,140,701	$	50.17	$	28,187,067	$	50.25
2007	151,089		9,741,566			64.48		9,754,780			64.56	384,242	$	19,422,861	$	50.55	$	19,516,176	$	50.79
2008	484,428		30,553,712			63.07		31,140,808			64.28	280,994	$	11,580,358	$	41.21	$	12,080,839	$	42.99
2009	176,935		11,908,248			67.30		12,734,163			71.97	202,267	$	9,915,181	$	49.02	$	10,092,620	$	49.90
2010	329,752		23,068,878			69.96		23,895,961			72.47	255,737	$	14,006,093	$	54.77	$	15,197,677	$	59.43
2011	419,467		26,068,171			62.15		29,325,176			69.91	212,834	$	18,620,802	$	87.49	$	18,975,920	$	89.16
2012	987,795		62,231,262			63.00		64,270,088			65.06	171,245	$	7,945,743	$	46.40	$	8,746,357	$	51.08
2013	15,896		12,200,283			92.87		1,650,943			103.86	121,619	$	4,614,429	$	37.94	$	5,154,189	$	42.38
2014	201,372		12,200,283			60.59		13,317,717			66.13	241,438	$	8,823,004	$	36.54	$	9,545,658	$	39.54
Thereafter	4,555,309		281,436,115			61.78		341,137,636			74.89	848,254	$	34,836,194	$	41.07	$	39,521,801	$	46.59

	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	—	$	—		$	—	$	—		$	—	60,343	$	1,487,501	$	24.65	$	1,499,289	$	24.85
2006	—		—			—		—			—	39,038		1,081,504		27.70		1,104,882		28.30
2007	—		—			—		—			—	100,901		3,484,607		34.53		3,426,555		33.96
2008	—		—			—		—			—	21,890		587,623		26.84		673,892		30.79
2009	—		—			—		—			—	78,869		2,035,903		25.81		2,080,975		26.39
2010	—		—			—		—			—	62,719		1,664,784		26.54		1,923,182		30.66
2011	—		—			—		—			—	—		—		—		—		—
2012	—		—			—		—			—	54,075		1,706,268		31.55		2,047,398		37.86
2013	—		—			—		—			—	292,940		6,971,334		23.80		7,701,597		26.29
2014	—		—			—		—			—	—		—		—		—		—
Thereafter	—		—			—		—			—	778,122		19,967,331		25.66		24,398,556		31.36

(1)	Includes 20,738 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $42.39 and rent on expiring leases with future step-up is $42.49 per square foot in 2005.

(1)	Includes 18,788 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $48.52 and rent on expiring leases with future step-up is $49.31 per square foot in 2006.

Boston Properties, Inc.

First Quarter 2005

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	239,043	$	6,301,169	$	26.36	$	6,352,729	$	26.58	199,947	$	5,566,468	$	27.84	$	5,521,841	$	27.62
2006	777,951		18,794,629		24.16		18,835,733		24.21	263,246		7,557,137		28.71		7,746,717		29.43
2007	505,071		13,699,698		27.12		14,021,833		27.76	277,552		7,018,764		25.29		7,199,809		25.94
2008	360,687		10,219,638		28.33		10,716,968		29.71	234,401		7,205,800		30.74		7,710,877		32.90
2009	445,625		14,475,437		32.48		15,514,493		34.82	64,433		1,710,242		26.54		1,846,467		28.66
2010	181,997		4,527,096		24.87		4,751,229		26.11	343,907		10,409,038		30.27		11,874,673		34.53
2011	538,835		12,577,375		23.34		13,707,152		25.44	596,733		17,151,195		28.74		19,581,638		32.81
2012	447,554		13,084,538		29.24		14,088,729		31.48	618,361		22,034,856		35.63		26,481,667		42.83
2013	—		—		—		—		—	71,476		2,170,549		30.37		2,616,938		36.61
2014	34,474		808,279		23.45		917,343		26.61	712,560		19,414,509		27.25		21,756,762		30.53
Thereafter	208,895		7,112,063		34.05		9,538,094		45.66	1,553,706		47,462,979		30.55		52,761,808		33.96

	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	—	$	—	$	—	$	—	$	—	37,748	$	1,130,233	$	29.94	$	1,299,037	$	34.41
2006	—		—		—		—		—	36,569		2,260,482		61.81		2,382,760		65.16
2007	—		—		—		—		—	19,271		589,929		30.61		485,220		25.18
2008	—		—		—		—		—	40,244		1,002,738		24.92		1,072,386		26.65
2009	—		—		—		—		—	5,484		123,156		22.46		131,148		23.91
2010	—		—		—		—		—	9,351		216,167		23.12		270,175		28.89
2011	—		—		—		—		—	4,319		148,228		34.32		148,228		34.32
2012	—		—		—		—		—	5,740		120,540		21.00		135,751		23.65
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	159,617		5,027,017		31.49		5,812,332		36.41
Thereafter	—		—		—		—		—	294,191		7,944,052		27.00		10,805,920		36.73

	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	145,293	$	5,147,281	$	35.43	$	6,162,237	$	42.41	—	$	—	$	—	$	—	$	—
2006	61,889		2,207,931		35.68		2,232,752		36.08	—		—		—		—		—
2007	523,015		16,262,569		31.09		16,736,512		32.00	—		—		—		—		—
2008	33,802		990,865		29.31		1,390,859		41.15	—		—		—		—		—
2009	267,460		8,611,049		32.20		9,284,601		34.71	—		—		—		—		—
2010	183,713		6,166,721		33.57		6,488,901		35.32	—		—		—		—		—
2011	269,917		8,683,537		32.17		9,231,840		34.20	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	103,080		3,250,174		31.53		3,584,283		34.77	—		—		—		—		—
2014	284,574		8,447,427		29.68		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		6,779,089		30.33		7,300,447		32.66	—		—		—		—		—

Boston Properties, Inc.

First Quarter 2005

HOTEL PERFORMANCE


Long Wharf Marriott - Boston
	First Quarter 2005			First Quarter 2004			Percent Change
Occupancy		72.7	%		77.7	%	-6.4	%
Average Daily Rate	$	176.34		$	166.12		6.2	%
Revenue per available room	$	128.14		$	129.08		-0.7	%

Cambridge Center Marriott
	First Quarter 2005			First Quarter 2004			Percent Change
Occupancy		65.5	%		65.1	%	0.6	%
Average Daily Rate	$	147.99		$	140.06		5.7	%
Revenue per available room	$	96.98		$	91.18		6.4	%

Residence Inn by Marriott
	First Quarter 2005			First Quarter 2004			Percent Change
Occupancy		79.3	%		70.8	%	12.0	%
Average Daily Rate	$	123.45		$	115.15		7.2	%
Revenue per available room	$	97.94		$	81.49		20.2	%

Total Hotel Performance
	First Quarter 2005			First Quarter 2004			Percent Change
Occupancy		71.1	%		71.1	%	0.0	%
Average Daily Rate	$	153.66		$	144.77		6.1	%
Revenue per available room	$	109.07		$	103.60		5.3	%

Boston Properties, Inc.

First Quarter 2005

OCCUPANCY ANALYSIS

Same Property Occupancy ⁽¹⁾ - By Location


	CBD				Suburban				Total
Location	31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04
Greater Boston	93.3	%	93.8	%	86.3	%	82.8	%	90.1	%	88.9	%
Greater Washington	100.0	%	100.0	%	96.8	%	95.4	%	97.7	%	96.7	%
Midtown Manhattan	98.7	%	98.9	%	—		—		98.7	%	98.9	%
Baltimore, MD	90.9	%	96.0	%	—		—		90.9	%	96.0	%
Princeton/East Brunswick, NJ	—		—		90.4	%	92.5	%	90.4	%	92.5	%
Richmond, VA	91.5	%	91.7	%	—		—		91.5	%	91.7	%
Greater San Francisco	81.1	%	90.1	%	65.7	%	35.5	%	78.6	%	81.2	%

Total Portfolio	93.1	%	95.5	%	90.2	%	86.8	%	92.0	%	92.1	%


*Same Property Occupancy ⁽¹⁾ - - By Type of Property*

	CBD				Suburban				Total
	31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04		31-Mar-05		31-Mar-04
Total Office Portfolio	93.1	%	95.5	%	90.6	%	87.1	%	92.2	%	92.5	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	94.7	%	97.6	%	94.9	%
Total Industrial Portfolio	—		—		0.0	%	0.0	%	0.0	%	0.0	%

Total Portfolio	93.1	%	95.5	%	90.2	%	86.8	%	92.0	%	92.1	%

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

Boston Properties, Inc.

First Quarter 2005

SAME PROPERTY PERFORMANCE

Office, Office/Technical, Industrial and Hotel Properties


	Office		Office/Technical			Industrial			Hotel (1)			Total
Number of Properties	94			17			1			3			115
Square feet	28,391,749			1,403,789			152,009			937,874			30,885,421
Percent of in-service properties	90.5	%		100.0	%		100.0	%		100.0	%		91.2	%
Occupancy @ 3/31/04	92.5	%		94.9	%		0.0	%		—			92.1	%
Occupancy @ 3/31/05	92.2	%		97.6	%		0.0	%		—			92.0	%
Percent change from 1st quarter 2005 over 1st quarter 2004 (2):
Rental revenue	1.3	%		6.0	%		See Note 4			6.3	%		1.6	%
Operating expenses and real estate taxes	4.6	%		-2.8	%		See Note 4			5.2	%		4.6	%
Net Operating Income (3)	-0.3	%		8.9	%		See Note 4			14.4	%		0.0	%
Net Operating Income (3) - without hotels													-0.1	%
Rental revenue - cash basis	1.7	%		6.9	%		See Note 4			6.3	%		2.0	%
Net Operating Income (3) - cash basis (4)	0.2	%		10.0	%		See Note 4			14.6	%		0.5	%
Net Operating Income (3) - cash basis(4) - without hotels													0.4	%

*Same Property Lease Analysis - quarter ended March 31, 2005*

			Office			Office/Technical			Industrial			Total
Vacant space available @ 1/1/05 (sf)				2,179,430			33,799			152,009			2,365,238
Square footage of leases expiring or terminated 1/1/05-3/31/05				450,009			—			—			450,009

Total space for lease (sf)				2,629,439			33,799			152,009			2,815,247

New tenants (sf)				204,993			—			—			204,993
Renewals (sf)				211,928			—			—			211,928

Total space leased (sf)				416,921			—			—			416,921

Space available @ 3/31/05 (sf)				2,212,518			33,799			152,009			2,398,326

Net (increase)/decrease in available space (sf)				(33,088	)		—			—			(33,088	)
Average lease term (months)				45			—			—			45
Average free rent (days)				11			—						11
2nd generation TI/Comm PSF			$	11.89		$	—		$	—		$	11.89
Increase (decrease) in 2nd generation gross rents (5)				-8.61	%		—			—			-8.61	%
Increase (decrease) in 2nd generation net rents (5)				-14.95	%		—			—			-14.95	%

(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 303,875 square feet.

Boston Properties, Inc.

First Quarter 2005

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	3/31/2005			3/31/2004
	*(in thousands)*
Net income available to common shareholders	$	61,242		$	66,048
Gains on sales of real estate from discontinued operations, net of minority interest		—			(2,521	)
(Income)/Loss from discontinued operations, net of minority interest		406			(1,633	)
Gains on sales of real estate, net of minority interest					(6,698	)
Gains on sales of land held for development, net of minority interest		(1,208	)		—
Minority interest in Operating Partnership		15,699			17,125
Income from unconsolidated joint ventures		(1,335	)		(1,377	)
Minority interest in property partnerships		(1,652	)		(385	)

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		73,152			70,559
Add:
Depreciation and amortization		67,983			56,007
Interest		79,354			74,305
General and administrative		14,813			12,600
Losses from early extinguishments of debt		—			6,258
Subtract:
Interest and other		(1,637	)		(7,528	)
Development and management services		(4,536	)		(3,322	)

Consolidated Net Operating Income	$	229,129		$	208,879

Same Property Net Operating Income	$	204,056		$	204,109
Net operating income from non Same Properties (1)		23,847			3,212
Termination income		1,226			1,558

Consolidated Net Operating Income	$	229,129		$	208,879

Same Property Net Operating Income	$	204,056		$	204,109
Less Straight Line Rent		10,809			11,892

Same Property Net Operating Income - cash basis	$	193,248		$	192,217

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

Boston Properties, Inc.

First Quarter 2005

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical										Industrial
	For the three months ended				$ Change			% Change		For the three months ended					$ Change			% Change		For the three months ended						$ Change			% Change
	31-Mar-05		31-Mar-04		$ Change			% Change		31-Mar-05			31-Mar-04		$ Change			% Change		31-Mar-05			31-Mar-04			$ Change			% Change
Rental Revenue	$	301,029	$	297,504						$	5,851		$	5,517						$	2		$	(2	)
Less Termination Income		1,226		1,558							—			—							—			—

Rental revenue - subtotal		299,803		295,947		3,856		1.3	%		5,851			5,517		334		6.0	%		2			(2	)		4		-181.7	%
Operating expenses and real estate taxes		101,896		97,407		4,488		4.6	%		1,302			1,339		(37	)	-2.8	%		117			105			12		11.6	%

Net Operating Income (1)	$	197,907	$	198,539	$	(632	)	-0.3	%	$	4,548		$	4,178	$	371		8.9	%	$	(115	)	$	(107	)	$	(8	)	-7.7	%

Rental revenue - subtotal	$	299,803	$	295,947						$	5,851		$	5,517						$	2		$	(2	)
Less Straight Line Rent		10,812		11,849		(1,037	)				(5	)		38		(43	)				0			2			(2	)

Rental revenue - cash basis		288,991		284,098		4,893		1.7	%		5,856			5,479		377		6.9	%		2			(4	)		6		-140.0	%
Less:
Operating expenses and real estate taxes		101,896		97,407		4,488		4.6	%		1,302			1,339		(37	)	-2.8	%		117			105			12		11.6	%

Net Operating Income (2) - cash basis	$	187,095	$	186,690	$	405		0.2	%	$	4,553		$	4,140	$	414		10.0	%	$	(115	)	$	(109	)	$	(7	)	6.0	%



	Hotel									Total
	For the three months ended				$ Change			% Change		For the three months ended				$ Change			% Change
	31-Mar-05		31-Mar-04		$ Change			% Change		31-Mar-05		31-Mar-04		$ Change			% Change
Rental Revenue	$	14,002	$	13,178						$	320,883	$	316,197
Less Termination Income		—		—							1,226		1,558

Rental revenue - subtotal		14,002		13,178	$	824		6.3	%		319,657		314,639		5,018		1.6	%
Operating expenses and real estate taxes		12,286		11,678		607		5.2	%		115,601		110,530		5,071		4.6	%

Net Operating Income (1)	$	1,716	$	1,500	$	217		14.4	%	$	204,056	$	204,109	$	(53	)	0.0	%

Rental revenue - subtotal	$	14,002	$	13,178						$	319,657	$	314,639
Less Straight Line Rent		1		3		(2	)				10,809		11,892		(1,083	)

Rental revenue - cash basis		14,000		13,175		826		6.3	%		308,849		302,747		6,101		2.0	%
Less:
Operating expenses and real estate taxes		12,286		11,678		607		5.2	%		115,601		110,530		5,071		4.6	%

Net Operating Income (2) - cash basis	$	1,715	$	1,496	$	218		14.6	%	$	193,248	$	192,217	$	1,030		0.5	%

(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.

First Quarter 2005

LEASING ACTIVITY

All In-Service Properties - quarter ended March 31, 2005


	Office			Office/Technical		Industrial		Total
Vacant space available @ 1/1/2005 (sf)		2,370,488			33,799		152,009		2,556,296
Property dispositions/ assets taken out of service (sf)		—			—		—		—
Property acquisitions/ assets placed in-service (sf)		539,229			—		—		539,229
Leases expiring or terminated 1/1/05-3/31/05 (sf)		455,330			—		—		455,330

Total space for lease (sf)		3,365,047			33,799		152,009		3,550,855

New tenants (sf)		691,600			—		—		691,600
Renewals (sf)		213,058			—		—		213,058

Total space leased (sf)		904,658			—		—		904,658	(1)

Space available @ 3/31/05 (sf)		2,460,389			33,799		152,009		2,646,197

Net (increase)/decrease in available space (sf)		(89,901	)		—		—		(89,901	)
Average lease term (months)		45			—		—		45
Average free rent (days)		11							11
2nd generation TI/Comm PSF	$	11.85		$	—	$	—	$	11.85
Increase (decrease) in 2nd generation gross rents (2)		-8.52	%		—		—		-8.52	%
Increase (decrease) in 2nd generation net rents (3)		-14.81	%		—		—		-14.81	%

(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 305,005.

(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 305,005.


	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	18,926	182,568	-12.91	%	-20.97	%	201,494
Washington	465,811	135,631	-6.88	%	-14.36	%	601,442
New York	20,796	12,346	2.48	%	2.45	%	33,142
San Francisco	—	29,167	10.20	%	20.67	%	29,167
Princeton	—	39,413	-14.88	%	-22.01	%	39,413

	505,533	399,125	-8.52	%	-14.81	%	904,658

Boston Properties, Inc.

First Quarter 2005

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q1 2005		2004		2003		2002
Recurring capital expenditures	$	1,461	$	25,101	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		962		4,889		4,464		31,908
Hotel improvements, equipment upgrades and replacements		516		1,001		2,345		3,218

	$	2,939	$	30,991	$	25,323	$	51,800


*2nd Generation Tenant Improvements and Leasing Commissions*
*(Square Feet in thousands)*

	Q1 2005		2004		2003		2002
Office
Square feet		399,125		3,356,267		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	11.85	$	24.74	$	14.41	$	20.17

Office/Technical
Square feet		—		195,953		169,893		347,321

Tenant improvement and lease commissions PSF	$	—	$	14.35	$	6.43	$	1.42

Industrial
Square feet		—		—		—		244,904

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

Average tenant improvement and lease commissions PSF	$	11.85	$	24.17	$	13.93	$	16.01

Boston Properties, Inc.

First Quarter 2005

ACQUISITIONS/DISPOSITIONS

as of March 31, 2005

ACQUISITIONS

For the period from January 1, 2005 through March 31, 2005


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment		Total Investment		Percentage Leased
No Activity

Total Acquisitions		—	$	—	$	—	$	—		—


*DISPOSITIONS*
For the period from January 1, 2005 through March 31, 2005

Property			Date Disposed		Square Feet		Gross Sales Price		Book Gain
Prudential Center - Land Parcel				Feb-05		N/A	$	50,100,000		N/A	(1)
Decoverly Four and Five - Land Parcels				Feb-05		N/A		5,180,000		1,445,000

Total Dispositions						—	$	55,280,000	$	1,445,000

(1)

This transaction currently does not qualify as a sale for accounting purposes due to certain continuing involvement provisions. Sales price includes an estimated amount totaling approximately $18.6 million, which represents the buyer’s obligation to fund future development costs at the Prudential Center.

Boston Properties, Inc.

First Quarter 2005

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of March 31, 2005


Development Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Total Construction Loan			Amount Drawn at March 31, 2005		Estimated Future Equity Requirement		Percentage Leased (2)
Seven Cambridge Center and West Garage	Q1 2006	Q1 2006	Cambridge, MA	1	231,028		42,738,589		145,933,861		125,000,000	(3)		—		—	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,000		10,886,870		45,754,416		—			—		34,867,546	100	%
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		11,551,765		69,100,000		47,225,000			1,000		10,324,235	46	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		6,439,105		31,625,638		23,053,850			3,773,361		5,906,044	N/A

Total Development Properties				2	731,585	$	71,616,329	$	292,413,915	$	195,278,850		$	3,774,361	$	51,097,825	76	%


*DEVELOPMENTS PLACED-IN-SERVICE DURING 2005*

	Initial In Service Date	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Debt			Drawn at March 31, 2005		Estimated Future Equity Requirement		Percentage Leased
901 New York Avenue (25% ownership)	Q3 2004	Q2 2005	Washington, D.C.	1	539,038		41,315,497		44,777,000		42,500,000			42,500,000		3,461,503	96	%

Total Developments Placed in Service				1	539,038		41,315,497		44,777,000		42,500,000			42,500,000		3,461,503	96	%

(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)	Represents percentage leased as of April 26, 2005.

(3)	On April 12, 2005, the Company obtained construction financing totaling $125 million which bears interest at LIBOR plus 1.25% per annum and matures in April 2007 with a one-year extension option.

Boston Properties, Inc.

First Quarter 2005

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of March 31, 2005


Location	Acreage	Developable Square Feet
Rockville, MD	68.9	937,000
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	0.2	304,500
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

	356.0	7,287,000


*VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS*
as of March 31, 2005

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.

First Quarter 2005

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

LOGO

111 Huntington Avenue

Boston, MA 02199


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

Kathleen DiChiara
Investor Relations Manager
(617) 236-3343

BOSTON PROPERTIES, INC. ANNOUNCES

FIRST QUARTER 2005 RESULTS

Reports diluted FFO per share of $1.03 Reports diluted EPS of $0.55

BOSTON, MA, April 26, 2005 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the first quarter ended March 31, 2005.

Funds from Operations (FFO) for the quarter ended March 31, 2005 were $117.3 million, or $1.06 per share basic and $1.03 per share diluted. This compares to FFO for the quarter ended March 31, 2004 of $103.8 million, or $1.03 per share basic and $0.99 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 110,187,333 and 117,721,288, respectively, for the quarter ended March 31, 2005 and 100,890,264 and 110,577,230, respectively, for the same quarter last year.

Net income available to common shareholders was $61.2 million for the three months ended March 31, 2005, compared to $66.0 million for the quarter ended March 31, 2004. Net income available to common shareholders per share (EPS) for the quarter ended March 31, 2005 was $0.56 basic and $0.55 on a diluted basis. This compares to EPS for the first quarter of 2004 of $0.65 basic and $0.64 on a diluted basis. EPS includes $0.01 and $0.10 on a diluted basis, related to gains on sales of real estate and discontinued operations for the quarters ended March 31, 2005 and 2004, respectively.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended March 31, 2005. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of March 31, 2005, the Company’s portfolio consisted of 125 properties comprising approximately 44.1 million square feet, including two properties under construction and one expansion project totaling 0.7 million square feet. The overall percentage of leased space for the 120 properties in service as of March 31, 2005 was 92.0%. Excluding the substantially vacant Old Federal Reserve property, which was sold on April 20, 2005, the in-service portfolio was 92.4% leased.

As discussed in the Company’s proxy statement for use in connection with the Company’s 2005 annual meeting of stockholders, Alan B. Landis will resign from the Company’s Board of Directors effective as of immediately prior to the 2005 annual meeting. In addition, the Company’s Board of Directors has nominated Zoë Baird for election as a director at the 2005 annual meeting. As a result, the Company expects that following the 2005 annual meeting, the Company’s Board of Directors will continue to consist of ten members, seven of whom qualify as “independent directors” under the rules of the New York Stock Exchange. Ms. Baird is currently the President of the Markle Foundation, a private philanthropy that focuses on using information and communications technologies to address critical public needs, particularly in the areas of health care and national security.

Significant events of the first quarter include:

•

The Company was selected the #1 Real Estate Company in FORTUNE® magazine’s 2005 List of America’s Most Admired Companies for the second consecutive year.

•

On February 8, 2005, the Company, together with an unrelated third party residential developer (collectively, the “Developer”), executed a development agreement with The George Washington University (the “University”). The project will include the development of a site at Pennsylvania Avenue and Washington Circle in Washington, D.C. as a mixed-use project comprising approximately 539,000 net rentable square feet of office, 60,000 net rentable square feet of retail and 250,000 net rentable square feet of residential space pursuant to ground leases to be entered into between the University and the Developer and subject to a rezoning of the site to permit such development. The Company will not have an interest in the development of the residential phase of the project.

•

On February 17, 2005, the Company obtained construction financing totaling $47.2 million collateralized by the Capital Gallery property in Washington, D.C. Capital Gallery is a Class A office property totaling approximately 397,000 net rentable square feet. The purpose of the financing is to fund a portion of the cost of an expansion project at the property. The expansion project entails removing a three-story low-rise section of the property comprised of 100,000 net rentable square feet from in-service status and redeveloping it into a ten-story office building. Upon completion, the total complex size will approximate 610,000 net rentable square feet. The construction financing bears interest at a variable rate equal to LIBOR plus 1.65% per annum and matures in February 2008. The construction financing is with the same lender as the existing mortgage loan collateralized by the property.

•

On February 23, 2005, the Company sold a parcel of land at the Prudential Center located in Boston, Massachusetts, which is expected to be developed as the Mandarin Oriental, a hotel and condominium mixed-use complex, for a net sale price of approximately $31.5 million and an obligation of the buyer to fund an estimated $18.6 million of future improvements to the Prudential Center.

•

On February 28, 2005, the Company sold Decoverly Four and Five, consisting of two undeveloped land parcels located in Rockville, Maryland, for net cash proceeds of approximately $5.3 million.

•

On March 8, 2005, the Company entered into a joint venture with an unrelated third party to develop a build-to-suit Class A office building totaling 318,000 net rentable square feet at 505 9th Street in Washington, D.C. The joint venture partner contributed the land for a 50% interest. Upon commencement of construction on the project, the Company will be required to issue to the joint venture partner common units of partnership interest of the Company’s Operating Partnership for the Company’s 50% interest. The joint venture subsequently entered into a fifteen year lease with DLA Piper Rudnick Gray Cary US LLP, to occupy 230,000 square feet of the building.

•

On March 11, 2005, a joint venture, in which the Company has an effective ownership interest of approximately 23.9%, obtained construction financing totaling $96.5 million. The financing is collateralized by the Wisconsin Place development project in Chevy Chase, Maryland. Wisconsin Place is a mixed-use development project consisting of office, retail and residential properties. The construction financing bears interest at a variable rate equal to LIBOR plus 1.50% per annum and matures in March 2009 with a one-year extension option.

•

The Company placed-in-service 901 New York Avenue, a 539,000 net rentable square foot Class A office property located in Washington, D.C., in which the Company has a 25% ownership interest. This property is 96% leased.

Transactions completed subsequent to March 31, 2005:

•

On April 4, 2005, the Company executed a contract for the sale of Riverfront Plaza, a 910,000 net rentable square foot Class A office property located in Richmond, Virginia, for approximately $247.1 million. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated, we have no reason to believe that the closing will not occur as expected by the end of May 2005.

•

On April 4, 2005, the Company executed a contract for the sale of 100 East Pratt Street, a 639,000 net rentable square foot Class A office property located in Baltimore, Maryland, for approximately $207.5 million. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated, we have no reason to believe that the closing will not occur as expected by the end of May 2005.

•

On April 12, 2005, the Company obtained construction financing totaling $125.0 million collateralized by its Seven Cambridge Center development project located in Cambridge, Massachusetts. Seven Cambridge Center is a fully-leased, build-to-suit project with approximately 231,000 net rentable square feet of office, research laboratory and retail space plus parking for approximately 800 cars. The construction financing bears interest at a variable rate equal to LIBOR plus 1.25% per annum and matures in April 2007 with a one-year extension option.

•

On April 20, 2005, the Company sold the Old Federal Reserve, a Class A office property totaling approximately 150,000 net rentable square feet located in San Francisco, California, at a sale price of approximately $46.8 million.

EPS and FFO per Share Guidance:

The Company’s guidance for the second quarter of 2005 and the full year 2005 for EPS (diluted), FFO per share (diluted) and FFO per share (diluted) after supplemental adjustment is set forth and reconciled below. The reconciliation of projected EPS to projected FFO per share, as provided below, is consistent with the Company’s historical computations.


	Second Quarter 2005			Full Year 2005
	Low - High			Low - High
Projected EPS (diluted)	$1.40	-	$1.42	$	3.16	-	$	3.26

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

Less:
Projected Company Share of Gains on Sales of Real Estate	$0.94	-	$0.94	$	0.95	-	$	0.95

Projected FFO per Share (diluted)	$0.92	-	$0.94	$	4.06	-	$	4.16

Add:
Projected Company Share of Losses from Early Extinguishments of Debt Associated with the Sales of Real Estate	$0.09	-	$0.09	$	0.09	-	$	0.09

Projected FFO per Share (diluted) after Supplemental Adjustment to Exclude Losses from Early Extinguishments of Debt Associated with the Sales of Real Estate	$1.01	-	$1.03	$	4.15	-	$	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.

The foregoing estimates also include FFO with a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. These losses from early extinguishments of debt are incurred when the sale of real estate encumbered by debt requires the Company to pay the extinguishment costs prior to the debt’s stated maturity and to write-off unamortized loan costs at the date of the extinguishment. Such costs are excluded from the gains

on sales of real estate reported in accordance with GAAP. However, the Company views the losses from early extinguishments of debt associated with the sales of real estate as an incremental cost of the sale transactions because the Company extinguished the debt in connection with the consummation of the sale transactions and the Company had no intent to extinguish the debt absent such transactions. The Company believes that this supplemental adjustment more appropriately reflects the results of its operations exclusive of the impact of its sale transactions.

Boston Properties will host a conference call tomorrow, April 27, 2005 at 10:00 AM (Eastern Time), open to the general public, to discuss the first quarter 2005 results, the 2005 projections and other related matters. The number to call for this interactive teleconference is (800) 218-9073. A replay of the conference call will be available through May 4, 2005 by dialing (800) 405-2236 and entering the passcode 11027376. An audio-webcast will also be archived and may be accessed at www.bostonproperties.com in the Investor Relations section under the heading Events & Webcasts.

Additionally, a copy of Boston Properties’ first quarter 2005 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations 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 five markets – Boston, Midtown Manhattan, Washington, D.C., San Francisco and Princeton, N.J.

This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “guidance,” “expects,” “plans,” “estimates,” “projects,” “intends,” “believes” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, including its guidance for the second quarter and full fiscal year 2005.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	March 31, 2005			December 31, 2004
	(in thousands, except for share amounts) (unaudited)
ASSETS
Real estate	$	9,024,693		$	9,033,858
Development in progress		66,699			35,063
Land held for future development		234,010			222,306
Real estate held for sale, net		35,217			—
Less: accumulated depreciation		(1,195,648	)		(1,143,369	)

Total real estate		8,164,971			8,147,858

Cash and cash equivalents		209,307			239,344
Cash held in escrows		25,613			24,755
Tenant and other receivables, net of allowance for doubtful accounts of $2,779 and $2,879, respectively		27,442			25,500
Accrued rental income, net of allowance of $4,515 and $4,252, respectively		272,035			251,236
Deferred charges, net		255,695			254,950
Prepaid expenses and other assets		63,073			38,630
Investments in unconsolidated joint ventures		79,855			80,955

Total assets	$	9,097,991		$	9,063,228

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,540,242		$	3,541,131
Unsecured senior notes, net of discount		1,470,774			1,470,683
Unsecured line of credit		—			—
Accounts payable and accrued expenses		105,009			94,451
Dividends and distributions payable		91,259			91,428
Interest rate contract		—			1,164
Accrued interest payable		41,987			50,670
Other liabilities		134,716			91,300

Total liabilities		5,383,987			5,340,827

Commitments and contingencies		—			—

Minority interests		782,532			786,328

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, 110,521,077 and 110,399,385 shares issued and 110,442,177 and 110,320,485 shares outstanding in 2005 and 2004, respectively		1,104			1,103
Additional paid-in capital		2,639,806			2,633,980
Earnings in excess of dividends		314,907			325,452
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(6,160	)		(6,103	)
Accumulated other comprehensive loss		(15,463	)		(15,637	)

Total stockholders’ equity		2,931,472			2,936,073

Total liabilities and stockholders’ equity	$	9,097,991		$	9,063,228

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended March 31,
	2005			2004
	(in thousands, except for per share amounts) (unaudited)
Revenue
Rental:
Base rent	$	278,749		$	253,732
Recoveries from tenants		43,340			40,581
Parking and other		13,925			13,188

Total rental revenue		336,014			307,501
Hotel revenue		14,002			13,178
Development and management services		4,536			3,322
Interest and other		1,637			7,528

Total revenue		356,189			331,529

Expenses
Operating:
Rental		108,601			100,122
Hotel		12,286			11,678
General and administrative		14,813			12,600
Interest		79,354			74,305
Depreciation and amortization		67,983			56,007
Losses from early extinguishments of debt		—			6,258

Total expenses		283,037			260,970

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		73,152			70,559
Minority interests in property partnerships		1,652			385
Income from unconsolidated joint ventures		1,335			1,377

Income before minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		76,139			72,321
Minority interest in Operating Partnership		(15,699	)		(17,125	)

Income before gains on sales of real estate and land held for development and discontinued operations		60,440			55,196
Gains on sales of real estate, net of minority interest		—			6,698
Gains on sales of land held for development, net of minority interest		1,208			—

Income before discontinued operations		61,648			61,894
Discontinued operations:
Income (loss) from discontinued operations, net of minority interest		(406	)		1,633
Gains on sales of real estate from discontinued operations, net of minority interest		—			2,521

Net income available to common shareholders	$	61,242		$	66,048

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.56		$	0.61
Discontinued operations, net of minority interest		—			0.04

Net income available to common shareholders	$	0.56		$	0.65

Weighted average number of common shares outstanding		110,187			100,890

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.55		$	0.60
Discontinued operations, net of minority interest		—			0.04

Net income available to common shareholders	$	0.55		$	0.64

Weighted average number of common and common equivalent shares outstanding		112,364			103,490

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended March 31,
	2005			2004
	(in thousands, except for per share amounts) (unaudited)
Net income available to common shareholders	$	61,242		$	66,048

Add:
Minority interest in Operating Partnership		15,699			17,125
Less:
Minority interests in property partnerships		1,652			385
Income from unconsolidated joint ventures		1,335			1,377
Gains on sales of real estate, net of minority interest		—			6,698
Gains on sales of land held for development, net of minority interest		1,208			—
Income (loss) from discontinued operations, net of minority interest		(406	)		1,633
Gains on sales of real estate from discontinued operations, net of minority interest		—			2,521

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		73,152			70,559

Add:
Real estate depreciation and amortization (2)		69,540			57,873
Income (loss) from discontinued operations		(486	)		2,047
Income from unconsolidated joint ventures		1,335			1,377
Less:
Minority interests in property partnerships’ share of funds from operations		75			(904	)
Preferred distributions		(3,280	)		(4,385	)

Funds from operations		140,336			126,567

Less:
Minority interest in the Operating Partnership’s share of funds from operations		23,035			22,736

Funds from operations available to common shareholders	$	117,301		$	103,831

Our percentage share of funds from operations - basic		83.59	%		82.04	%

Weighted average shares outstanding - basic		110,187			100,890

FFO per share basic	$	1.06		$	1.03

Weighted average shares outstanding - diluted		117,721			110,577

FFO per share diluted	$	1.03		$	0.99

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $67,983 and $56,007, our share of unconsolidated joint venture real estate depreciation and amortization of $1,798 and $1,697 and depreciation and amortization from discontinued operations of $179 and $786, less corporate related depreciation and amortization of $420 and $617 for the three months ended March 31, 2005 and 2004, respectively.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	March 31, 2005		December 31, 2004
Greater Boston	90.6	%	90.2	%
Greater Washington, D.C.	97.2	%	97.9	%
Midtown Manhattan	96.6	%	96.4	%
Baltimore, MD	90.9	%	90.9	%
Richmond, VA	91.5	%	91.3	%
Princeton/East Brunswick, NJ	90.4	%	90.2	%
Greater San Francisco	78.6	%(1)	80.3	%

Total Portfolio	92.0	%(1)	92.1	%


	% Leased by Type
	March 31, 2005		December 31, 2004
Class A Office Portfolio	92.2	%	92.3	%
Office/Technical Portfolio	97.6	%	97.6	%
Industrial Portfolio	0.0	%	0.0	%

Total Portfolio	92.0	%	92.1	%

(1)	Following the sale of the Old Federal Reserve, the Greater San Francisco and the Total Portfolio percentages leased would have been 81.2% and 92.4%, respectively.