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Form 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): July 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 July 26, 2005, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the second 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.

(c)	Exhibits.


Exhibit No.		Description
*99.1		Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2005.

*99.2		Press release dated July 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: July 27, 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 June 30, 2005.

*99.2		Press release dated July 26, 2005.

*	Filed herewith.

Supplemental Operating and Financial Data

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2005

Boston Properties, Inc.

Second 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		20-22
Top 20 Tenants and Tenant Diversification		23
Office Properties-Lease Expiration Roll Out		24
Office/Technical Properties-Lease Expiration Roll Out		25
Industrial Properties-Lease Expiration Roll Out		26
Retail Properties - Lease Expiration Roll Out		27
Grand Total - Office, Office/Technical, Industrial and Retail Properties		28
Greater Boston Area Lease Expiration Roll Out		29-30
Washington, D.C. Area Lease Expiration Roll Out		31-32
San Francisco Area Lease Expiration Roll Out		33-34
Midtown Manhattan Area Lease Expiration Roll Out		35-36
Princeton Area Lease Expiration Roll Out		37-38
CBD/Suburban Lease Expiration Roll Out		39-40
Hotel Performance		41
Occupancy Analysis		42
Same Property Performance		43
Reconciliation to Same Property Performance and Net Income		44-45
Leasing Activity		46
Capital Expenditures, Tenant Improvements and Leasing Commissions		47
Acquisitions/Dispositions		48
Value Creation Pipeline - Construction in Progress		49
Value Creation Pipeline - Land Parcels and Purchase Options		50
Definitions		51

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

Boston Properties, Inc.

Second Quarter 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 fifteen 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 June 30, 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		122
Total Square Feet		41.2 million
Common Shares and Units Outstanding (as converted)		138.4 million
Dividend - Quarter/Annualized		$0.68/$2.72
Dividend Yield		3.89%
Total Market Capitalization		$14.6 billion
Senior Debt Ratings		Baa2 (Moody's); BBB (S&P and Fitch)

Boston Properties, Inc.

Second Quarter 2005

INVESTOR INFORMATION


Board of Directors		Management

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

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

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

Zoë Baird Director	Martin Turchin Director	Bryan J. Koop Senior Vice President, Manager of Boston Office	Frank D. Burt Senior Vice President, General Counsel

William M. Daley Director, Chairman of Nominating & Corporate Governance Committee	David A. Twardock Director	Robert E. Selsam Senior Vice President, Manager of New York Office	Arthur S. Flashman 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):


	Q2 2005			Q1 2005			Q4 2004			Q3 2004			Q2 2004
High Price	$	70.00		$	63.65		$	64.85		$	56.29		$	55.54
Low Price	$	59.65		$	56.93		$	56.25		$	49.86		$	43.63
Average Closing Price	$	65.92		$	60.15		$	60.40		$	53.57		$	48.15
Closing Price, at the end of the quarter	$	70.00		$	60.23		$	64.67		$	55.39		$	50.08
Dividends per share - annualized (1)	$	2.72		$	2.60		$	2.60		$	2.60		$	2.60
Closing dividend yield - annualized		3.89	%		4.32	%		4.02	%		4.69	%		5.19	%
Closing common shares outstanding, plus common units and preferred units on an as -converted basis (thousands)		138,389			137,634			137,399		$	136,277			135,889
Closing market value of outstanding shares and units (thousands)	$	9,687,230		$	8,289,696		$	8,885,593		$	7,548,404		$	6,805,321

(1)

Reflects dividend increase from $0.65 per share to $0.68 per share - effective Q2 2005.

Timing

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


Third Quarter		Late October
Fourth Quarter		Late January

Boston Properties, Inc.

Second Quarter 2005

RESEARCH COVERAGE


Equity Research Coverage			Debt Research Coverage

David Aubuchon	David Rodgers / Michael Salinsky	Chris Brown	Rating Agencies:
A.G. Edwards & Sons	KeyBanc Capital Markets	Banc of America Securities
314.955.5452	216.263.4785 / 216.563.2348	704.386.2524	Brendan Thorpe
			Fitch Ratings

Ross Nussbaum / John Kim	David Harris / David Toti	Susan Berliner	212.908.0538
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 212.553.4924
Ross Smotrich / Jeffrey Langbaum	Steve Sakwa / Brian Legg	Thierry Perrein	Moody's Investors Service 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 212.438.2452
Louis Taylor / Christoper Capolongo	Gregory Whyte / David Cohen	Scott O’Shea	Standard & Poor’s 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

Carey Callaghan / Sloan Bohlen	James Sullivan / James Feldman	Mark Streeter
Goldman Sachs & Company	Prudential Equity Group	J.P. Morgan Securities
212.902.4351 / 212.902.2796	212.778.2515 / 212.778.1724	212.834.5086

Jim Sullivan / Michael Knott	Jay Leupp / David Copp	John Forrey
Green Street Advisors	RBC Capital Markets (US)	Merrill Lynch & Company
949.640.8780	415.633.8588 / 415.633.8558	212.449.1812

Anthony Paolone / Michael Mueller	Jonathan Litt / John Stewart	Thomas Cook
J.P. Morgan Securities	Citigroup Global Markets	Citigroup Global Markets
212.622.6682 / 212.622.6689	212.816.0231 / 212.816.1685	212.723.1112

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.

Second 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 51.


	Three Months Ended
	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
Income Items:

Revenue	$	360,604		$	356,189		$	362,520		$	359,139		$	343,120
Straight line rent (SFAS 13)	$	19,294		$	20,871		$	19,218		$	16,954		$	13,487
Fair value lease revenue (SFAS 141) (1)	$	295		$	292		$	245		$	241		$	268
Lease termination fees (included in revenue)	$	3,979		$	1,226		$	634		$	1,800		$	—	(2)
Capitalized interest	$	866		$	693		$	721		$	1,758		$	3,539
Capitalized wages	$	1,422		$	1,649		$	1,549		$	1,459		$	1,565
Operating Margins [(rental revenue - rental expenses)/rental revenue] (3)		69.5	%		68.9	%		69.1	%		68.9	%		69.4	%
Net income available to common shareholders	$	166,634		$	61,242		$	62,254		$	68,542		$	87,118
Funds from operations (FFO) available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (4)	$	121,309		$	117,301		$	118,891		$	119,937		$	116,904
FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted (4)	$	1.06		$	1.03		$	1.05		$	1.07		$	1.05
Net income available to common shareholders per share - basic	$	1.47		$	0.56		$	0.57		$	0.63		$	0.81
Net income available to common shareholders per share - diluted	$	1.44		$	0.55		$	0.56		$	0.62		$	0.79
Dividends per share	$	0.68		$	0.65		$	0.65		$	0.65		$	0.65
Funds available for distribution to common shareholders and common unitholders (FAD) (5)	$	92,165		$	114,618		$	78,964		$	101,147		$	109,181

Ratios:

Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.54			2.59			2.64			2.74			2.80
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.51			2.57			2.62			2.68			2.67
FFO Payout Ratio (7)		64.15	%		63.11	%		61.90	%		60.75	%		61.90	%
FAD Payout Ratio (8)		98.15	%		75.01	%		109.43	%(9)		83.73	%		77.52	%

	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
Capitalization:
Total Debt	$	4,898,757		$	5,011,016		$	5,011,814		$	5,016,069		$	4,994,703
Price @ Quarter End	$	70.00		$	60.23		$	64.67		$	55.39		$	50.08
Equity Value @ Quarter End	$	9,687,230		$	8,289,696		$	8,885,593		$	7,548,404		$	6,805,321
Total Market Capitalization (10)	$	14,585,987		$	13,300,712		$	13,897,407		$	12,564,473		$	11,800,024
Debt/Total Market Capitalization (10)		33.59	%		37.67	%		36.06	%		39.92	%		42.33	%

(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 $6,992, $6,476, $6,541, $8,312 and $5,900 for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

(4)	For a quantitative reconciliation of the differences between FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate and net income available to common shareholders, see page 9.

(5)	For a quantitative reconciliation of the differences between FAD and FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate, see page 10.

(6)	For additional detail, see page 10.

(7)	Dividends per Common share divided by FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - 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 was sold in May 2005. Excluding these costs, the FAD payout ratio would be 89.23%.

(10)	For additional detail, see page 12.

Boston Properties, Inc.

Second Quarter 2005

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
ASSETS
Real estate	$	8,736,776		$	9,024,693		$	9,033,858		$	9,053,584		$	8,427,296
Construction in progress		99,727			66,699			35,063			19,279			606,012
Land held for future development		239,314	(1)		234,010			222,306			221,901			230,155
Real estate held for sale		—			35,217			—			45			5,756
Less accumulated depreciation		(1,189,101	)		(1,195,648	)		(1,143,369	)		(1,151,896	)		(1,099,715	)

Total real estate		7,886,716			8,164,971			8,147,858			8,142,913			8,169,504
Cash and cash equivalents		507,182			209,307			239,344			213,873			227,698
Cash held in escrows		29,077			25,613			24,755			24,137			27,888
Investments in marketable securities		25,000			—			—			—			—
Tenant and other receivables, net		28,230			27,442			25,500			12,936			11,637
Accrued rental income, net		280,257			272,035			251,236			232,143			215,536
Deferred charges, net		243,679			255,695			254,950			240,834			212,666
Prepaid expenses and other assets		43,042			63,073			38,630			57,302			33,388
Investments in unconsolidated joint ventures		82,810			79,855			80,955			88,276			83,950

Total assets	$	9,125,993		$	9,097,991		$	9,063,228		$	9,012,414		$	8,982,267

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,427,892		$	3,540,242		$	3,541,131		$	3,545,477		$	3,524,202
Unsecured senior notes, net of discount		1,470,865			1,470,774			1,470,683			1,470,592			1,470,501
Unsecured line of credit		—			—			—			—			—
Accounts payable and accrued expenses		92,649			105,009			94,451			88,124			91,790
Dividends and distributions payable		95,597			91,259			91,428			90,942			91,350
Interest rate contracts		—			—			1,164			2,928			4,800
Accrued interest payable		47,744			41,987			50,670			41,007			50,318
Other liabilities		132,427	(1)		134,716			91,300			89,813			89,145

Total liabilities		5,267,174			5,383,987			5,340,827			5,328,883			5,322,106

Commitments and contingencies		—			—			—			—			—

Minority interests		795,990			782,532			786,328			790,758			804,172

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, 111,403,373, 110,442,177, 110,320,485, 108,986,697 and 108,160,487 outstanding, respectively		1,114			1,104			1,103			1,090			1,082
Additional paid-in capital		2,679,448			2,639,806			2,633,980			2,582,036			2,544,278
Earnings in excess of dividends		405,780			314,907			325,452			334,736			336,704
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(5,503	)		(6,160	)		(6,103	)		(6,555	)		(7,367	)
Accumulated other comprehensive loss		(15,288	)		(15,463	)		(15,637	)		(15,812	)		(15,986	)

Total stockholders’ equity		3,062,829			2,931,472			2,936,073			2,892,773			2,855,989

Total liabilities and stockholders’ equity	$	9,125,993		$	9,097,991		$	9,063,228		$	9,012,414		$	8,982,267

(1)

Includes approximately $40 million of land assets at June 30, 2005 related to the sale of a land parcel at the Prudential Center on February 23, 2005. Net proceeds received of approximately $46 million at June 30, 2005 is included in other liabilities. This transaction does not currently qualify as a sale for accounting purposes due to continuing involvement provisions.

Boston Properties, Inc.

Second Quarter 2005

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Jun-05			31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04
Revenue:
Rental
Base Rent	$	277,360		$	278,749		$	276,211		$	273,605		$	263,559
Recoveries from tenants		41,856			43,340			41,555			43,381			39,261
Parking and other		14,248			13,925			14,353			15,645	(1)		14,083

Total rental revenue		333,464			336,014			332,119			332,631			316,903
Hotel revenues		20,066			14,002			24,230			19,768			19,166
Development and management services		4,137			4,536			5,330			5,832			5,961
Interest and other		2,937			1,637			841			908			1,090

Total revenue		360,604			356,189			362,520			359,139			343,120

Expenses:
Operating		63,453			63,778			62,386			65,998			59,667
Real estate taxes		43,123			44,823			44,337			42,854			41,382
Hotel operating		13,979			12,286			16,961			13,709			13,376
General and administrative		14,252			14,813			15,541			13,002			12,493
Interest (2)		78,233			79,354			79,378			77,698			74,789
Depreciation and amortization		65,850			67,983			68,529			65,480			60,366
Losses from early extinguishments of debt (3)		12,896			—			—			—			—

Total expenses		291,786			283,037			287,132			278,741			262,073

Income before minority interests and income from unconsolidated joint ventures		68,818			73,152			75,388			80,398			81,047
Minority interest in property partnerships		1,472			1,652			1,558			1,447			1,292
Income from unconsolidated joint ventures		847			1,335			664			460			879

Income before minority interest in Operating Partnership		71,137			76,139			77,610			82,305			83,218
Minority interest in Operating Partnership (4)		(14,965	)		(15,699	)		(16,076	)		(17,162	)		(17,776	)

Income before gains on sales of real estate and land held for development		56,172			60,440			61,534			65,143			65,442
Gains on sales of real estate, net of minority interest		102,073			—			—			—			1,377
Gains on sales of land held for development, net of minority interest		—			1,208			—			—			—

Income before discontinued operations		158,245			61,648			61,534			65,143			66,819
Income (loss) from discontinued operations, net of minority interest		—			(406	)		(367	)		(751	)		710
Gains on sales of real estate from discontinued operations, net of minority interest		8,389			—			1,087			4,150			19,589

Net income available to common shareholders	$	166,634		$	61,242		$	62,254		$	68,542		$	87,118


INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	1.47		$	0.56		$	0.57		$	0.63		$	0.81

Net income available to common shareholders per share - diluted	$	1.44		$	0.55		$	0.56		$	0.62		$	0.79

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

(2)	Interest expense is reported net of capitalized interest of $866, $693, $721, $1,758 and $3,539 for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

(3)	Includes $11.0 million of losses from early extinguishments of debt associated with the sales of real estate.

(4)

Equals minority interest share of 16.42%, 16.41%, 16.51%, 16.75% and 16.96% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

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

Boston Properties, Inc.

Second Quarter 2005

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Jun-05		31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04
Net income available to common shareholders	$	166,634	$	61,242		$	62,254		$	68,542		$	87,118
Add:
Minority interest in Operating Partnership		14,965		15,699			16,076			17,162			17,776
Less:
Minority interest in property partnerships		1,472		1,652			1,558			1,447			1,292
Income from unconsolidated joint ventures		847		1,335			664			460			879
Gain on sales of real estate, net of minority interest		102,073		—			—			—			1,377
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
Gain on sales of real estate from discontinued operations, net of minority interest		8,389		—			1,087			4,150			19,589

Income before minority interests and income from unconsolidated joint ventures		68,818		73,152			75,388			80,398			81,047
Add:
Real estate depreciation and amortization (1)		67,878		69,540			69,989			67,538			61,919
Income (loss) from discontinued operations		—		(486	)		(398	)		(849	)		910
Income from unconsolidated joint ventures		847		1,335			664			460			879
Less:
Minority property partnerships’ share of funds from operations		106		(75	)		(123	)		(17	)		158
Preferred dividends and distributions		3,340		3,280			3,361			3,491			3,813

Funds from operations (FFO)		134,097		140,336			142,405			144,073			140,784
Add:
Losses from early extinguishments of debt associated with the sales of real estate		11,041		—			—			—			—

FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		145,138		140,336			142,405			144,073			140,784
Less:
Minority interest in Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		23,829		23,035			23,514			24,136			23,880

FFO available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (2)	$	121,309	$	117,301		$	118,891		$	119,937		$	116,904

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.10	$	1.06		$	1.09		$	1.11		$	1.09

FFO per share - basic	$	1.01	$	1.06		$	1.09		$	1.11		$	1.09

Weighted average shares outstanding - basic		110,764		110,187			109,359			108,339			107,216

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.06	$	1.03		$	1.05		$	1.07		$	1.05

FFO per share - basic	$	0.98	$	1.03		$	1.05		$	1.07		$	1.05

Weighted average shares outstanding - diluted		118,460		117,721			117,269			116,149			115,208

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)	Income (Numerator)		Shares (Denominator)
Basic FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	145,138	132,522	$	140,336	131,825	$	142,405	130,987	$	144,073	130,141	$	140,784	129,116
Effect of Dilutive Securities
Convertible Preferred Units		3,340	5,357		3,280	5,357		3,361	5,381		3,491	5,568		3,813	6,192
Stock Options and other		—	2,339		—	2,177		—	2,529		—	2,242		—	1,800

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	148,478	140,218	$	143,616	139,359	$	145,766	138,897	$	147,564	137,951	$	144,597	137,108

Less:
Minority interest in Operating Partnership's share of diluted funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		23,039	21,758		22,299	21,638		22,698	21,628		23,321	21,802		23,097	21,900

Company’s share of diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (3)	$	125,439	118,460	$	121,317	117,721	$	123,068	117,269	$	124,243	116,149	$	121,500	115,208

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.10		$	1.06		$	1.09		$	1.11		$	1.09

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.06		$	1.03		$	1.05		$	1.07		$	1.05

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $65,850, $67,983, $68,529, $65,480 and $60,366, our share of unconsolidated joint venture real estate depreciation and amortization of $2,394, $1,798, $1,798, $1,636 and $1,683 and depreciation and amortization from discontinued operations of $0, $179, $206, $1,080 and $487, less corporate related depreciation of $366, $420, $544, $658 and $617 for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

(2)	Based on weighted average shares for the quarter. Company’s share for the quarter ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004 was 83.58%, 83.59%, 83.49%, 83.25% and 83.04%, respectively.

(3)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004 was 84.48%, 84.47%, 84.43%, 84.20% and 84.03%, respectively.

Boston Properties, Inc.

Second Quarter 2005

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
Basic FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (see page 9)	$	145,138		$	140,336		$	142,405		$	144,073		$	140,784
2nd generation tenant improvements and leasing commissions		(29,012	)		(4,730	)		(33,462	)(1)		(19,583	)		(17,693	)
Straight-line rent		(19,294	)		(20,871	)		(19,218	)		(16,954	)		(13,487	)
Recurring capital expenditures		(6,195	)		(1,461	)		(10,921	)		(6,831	)		(4,138	)
Fair value interest adjustment		(812	)		(798	)		(798	)		(793	)		(787	)
Fair value lease revenue (SFAS 141)		(295	)		(292	)		(245	)		(241	)		(268	)
Hotel improvements, equipment upgrades and replacements		(182	)		(516	)		(262	)		(238	)		(228	)
Non real estate depreciation		366			420			544			658			617
Stock-based compensation		1,584			2,101			898			955			933
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		867			429			23			101			3,448

Funds available for distribution to common shareholder and common unitholders (FAD)	$	92,165		$	114,618		$	78,964		$	101,147		$	109,181


*Interest Coverage Ratios* *(in thousands, except for ratio amounts)*

	Three Months Ended
	June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004			June 30, 2004
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	68,818		$	73,152		$	75,388		$	80,398		$	81,047
Interest expense		78,233			79,354			79,378			77,698			74,789
Depreciation and amortization expense		65,850			67,983			68,529			65,480			60,366
Depreciation from joint ventures		2,394			1,798			1,798			1,636			1,683
Income from unconsolidated joint ventures		847			1,335			664			460			879
Discontinued operations - depreciation expense		—			179			206			1,080			487
Discontinued operations		—			(486	)		(398	)		(849	)		910
Straight-line rent		(19,294	)		(20,871	)		(19,218	)		(16,954	)		(13,487	)
Fair value lease revenue (SFAS 141)		(295	)		(292	)		(245	)		(241	)		(268	)

Subtotal		196,553			202,152			206,102			208,708			206,406

Divided by:
Interest expense (2)		77,410			77,988			78,051			76,242			73,683

Interest Coverage Ratio		2.54			2.59			2.64			2.74			2.80

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	68,818		$	73,152		$	75,388		$	80,398		$	81,047
Interest expense		78,233			79,354			79,378			77,698			74,789
Depreciation and amortization expense		65,850			67,983			68,529			65,480			60,366
Depreciation from joint ventures		2,394			1,798			1,798			1,636			1,683
Income from unconsolidated joint ventures		847			1,335			664			460			879
Discontinued operations - depreciation expense		—			179			206			1,080			487
Discontinued operations		—			(486	)		(398	)		(849	)		910
Straight-line rent		(19,294	)		(20,871	)		(19,218	)		(16,954	)		(13,487	)
Fair value lease revenue (SFAS 141)		(295	)		(292	)		(245	)		(241	)		(268	)

Subtotal		196,553			202,152			206,102			208,708			206,406

Divided by:
Interest expense (2) (3)		78,276			78,681			78,772			78,000			77,222

Interest Coverage Ratio		2.51			2.57			2.62			2.68			2.67

(1)	Includes $17,736 of leasing costs associated with the renewal of a 332,017 square foot lease which was expected to be expended over the next three years. However, this property was sold in May 2005.

(2)	Excludes amortization of financing costs of $823, $1,366, $1,327, $1,456 and $1,106 for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

(3)	Includes capitalized interest of $866, $693, $721, $1,758 and $3,539 for the quarters ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.

Boston Properties, Inc.

Second 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 2005 and 2004 as income from discontinued operations for all periods presented. The following table summarizes income from discontinued operations (net of minority interest) for the three months ended June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004, respectively.


	Three Months Ended
	30-Jun-05		31-Mar-05			31-Dec-04			30-Sep-04			30-Jun-04
Total Revenue (1)	$	70	$	3		$	168		$	931		$	2,261

Expenses:
Operating		70		310			360			700			864
Depreciation and amortization		—		179			206			1,080			487

Total Expenses		70		489			566			1,780			1,351

Income before minority interests		—		(486	)		(398	)		(849	)		910

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

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

Properties (2):		Old Federal Reserve		Old Federal Reserve			Old Federal Reserve			Old Federal Reserve			Old Federal Reserve

							Forbes Boulevard			Sugarland Business Park - Building One			Sugarland Business Park - Building One

										204 Second Ave			204 Second Ave

										Forbes Boulevard			Forbes Boulevard

										Decoverly Two, Three,			Decoverly Two, Three,

										Six and Seven			Six and Seven

										38 Cabot Boulevard			38 Cabot Boulevard

										The Arboretum			The Arboretum 430 Rozzi Place Sugarland Business Park - Building Two

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

Boston Properties, Inc.

Second Quarter 2005

CAPITAL STRUCTURE

Debt

(in thousands)


													Aggregate Principal June 30, 2005
Mortgage Notes Payable													$	3,427,892
Unsecured Line of Credit														—
Unsecured Senior Notes, net of discount														1,470,865

Total Debt													$	4,898,757

Boston Properties Limited Partnership Unsecured Senior Notes
													Total/Average
Settlement Date		5/22/03			3/18/03			1/17/03			12/13/2002
Principal Amount	$	250,000		$	300,000		$	175,000		$	750,000		$	1,475,000
Yield (on issue date)		5.075	%		5.636	%		6.280	%		6.296	%		5.95	%
Coupon		5.000	%		5.625	%		6.250	%		6.250	%		5.91	%
Discount		99.329	%		99.898	%		99.763	%		99.650	%		99.659	%
Ratings:
Moody's		Baa2 (stable)			Baa2 (stable)			Baa2 (stable)			Baa2 (stable)
S&P		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Fitch		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Maturity Date		6/1/2015			4/15/2015			1/15/2013			1/15/2013
Discount	$	1,456		$	264		$	351		$	2,064		$	4,135

Unsecured Senior Notes, net of discount	$	248,544		$	299,736		$	174,649		$	747,936		$	1,470,865

*Equity*
*(in thousands)*

							Shares/ Units Outstanding as of 6/30/05			Common Stock Equivalents			Equivalent (1)
Common Stock								111,403			111,403	(2)	$	7,798,210
Common Operating Partnership Units								21,629			21,629	(3)		1,514,030
Series Two Preferred Operating Partnership Units								4,082			5,357			374,990

Total Equity											138,389		$	9,687,230

Total Debt														4,898,757

Total Market Capitalization													$	14,585,987

(1)	Value based on June 30, 2005 closing price of $70.00 per share of common stock.

(2)	Includes 337 shares of restricted stock, of which 115 shares are vested as of June 30, 2005.

(3)	Includes 381 long-term incentive plan units, of which 26 units are vested as of June 30, 2005.

Boston Properties, Inc.

Second Quarter 2005


*DEBT ANALYSIS*

*Debt Maturities and Principal Payments*
*(in thousands)*

	2005			2006			2007			2008			2009			Thereafter			Total
Floating Rate Debt	$	—		$	—		$	44,716		$	477,423		$	—		$	—		$	522,139
Fixed Rate Debt		334,329			220,821			181,377			801,323			188,278			2,650,490			4,376,618

Total Debt	$	334,329		$	220,821		$	226,093		$	1,278,746		$	188,278		$	2,650,490		$	4,898,757

Weighted Average Floating Rate Debt		—			—			4.53	%		3.79	%		—			—			3.85	%
Weighted Average Fixed Rate Debt		6.13	%		7.30	%		6.61	%		6.84	%		7.11	%		6.58	%		6.65	%

Total Weighted Average Rate		6.13	%		7.30	%		6.20	%		5.70	%		7.11	%		6.58	%		6.36	%


*Unsecured Debt*

*Unsecured Line of Credit - Matures October 30, 2007*
*(in thousands)*

Facility	Outstanding @ 6/30/2005	Letters of Credit	Remaining Capacity @ 6/30/2005
$ 605,000	$—	$8,136	$596,864


*Unsecured and Secured Debt Analysis*

	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	30.03	%	5.95	%	8.4 years
Secured Debt	69.97	%	6.53	%	4.0 years

Total Debt	100.00	%	6.36	%	5.3 years


*Floating and Fixed Rate Debt Analysis*
	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	10.66	%	3.85	%	2.9 years
Fixed Rate Debt	89.34	%	6.65	%	5.6 years

Total Debt	100.00	%	6.36	%	5.3 years

Boston Properties, Inc.

Second Quarter 2005

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2005			2006			2007			2008			2009			Thereafter			Total
Citigroup Center	$	3,385		$	7,145		$	7,676		$	8,246		$	8,858		$	466,148		$	501,458
Times Square Tower		—			—			—			475,000	(1)		—			—			475,000
Embarcadero Center One and Two		2,613			5,496			5,877			278,912			—			—			292,898
Prudential Center		2,474			5,256			5,619			259,706			—			—			273,055
280 Park Avenue		1,662			3,519			3,798			4,099			4,423			240,272			257,773
599 Lexington Avenue		225,000	(2)		—			—			—			—			—			225,000
Embarcadero Center Four		1,917			4,061			4,346			129,712			—			—			140,036
Embarcadero Center Three		1,273			2,671			132,726			—			—			—			136,670
Democracy Center		1,070			2,257			2,421			2,597			91,132			—			99,477
Embarcadero Center West Tower		837			90,416			—			—			—			—			91,253
601 and 651 Gateway Boulevard		84,260	(3)		—			—			—			—			—			84,260
One Freedom Square		961			2,005			2,122			2,245			2,375			71,266			80,974
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		666			1,387			1,466			1,549			1,637			53,849			60,554
202, 206 & 214 Carnegie Center		367			780			845			916			994			56,306			60,208
1330 Connecticut Avenue		1,076			2,238			2,346			2,452			2,577			47,722			58,411
New Dominion Technology Park, Building One		607			1,283			1,379			1,481			1,594			50,964			57,308
Reservoir Place		712			1,484			1,572			1,666			48,592			—			54,026
Capital Gallery		778			50,651			—			—			—			—			51,429
Cambridge Center Seven		—			—			44,716			—			—			—			44,716
504, 506 & 508 Carnegie Center		575			1,221			1,314			40,914			—			—			44,024
10 & 20 Burlington Mall Rd & 91 Hartwell		379			801			861			925			994			33,593			37,553
10 Cambridge Center		336			715			777			844			916			29,677			33,265
Sumner Square		284			599			645			694			747			25,495			28,464
1301 New York Avenue		722			1,531			1,651			1,781			21,628			—			27,313
Eight Cambridge Center		306			649			702			757			819			22,911			26,144
510 Carnegie Center		320			683			735			23,519			—			—			25,257
University Place		383			806			864			925			992			18,422			22,392
Reston Corporate Center		330			698			745			20,524			—			—			22,297
Bedford Business Park		383			818			890			16,859			—			—			18,950
191 Spring Street		350			18,267			—			—			—			—			18,617
101 Carnegie Center		207			6,622			—			—			—			—			6,829
Montvale Center		96			6,762			—			—			—			—			6,858
Capital Gallery Redevelopment		—			—			—			2,423			—			—			2,423

		334,329			220,821			226,093			1,278,746			188,278			1,179,625			3,427,892

Unsecured Senior Notes		—			—			—			—			—			1,470,865			1,470,865
Unsecured Line of Credit		—			—			—			—			—			—			—

	$	334,329		$	220,821		$	226,093		$	1,278,746		$	188,278		$	2,650,490		$	4,898,757

% of Total Debt		6.82	%		4.51	%		4.62	%		26.10	%		3.84	%		54.11	%		100.00	%
Balloon Payments	$	309,260		$	170,903		$	177,442		$	1,237,205		$	158,698		$	2,562,016		$	4,615,524
Scheduled Amortization	$	25,069		$	49,918		$	48,651		$	41,541		$	29,580		$	88,474		$	283,233

(1)	On June 21, 2005, we refinanced this construction loan facility. The new mortgage loan totaling $475.0 million bears interest at a variable rate equal to LIBOR plus 0.50% per annum and matures on July 9, 2008 with two one-year extension provisions at our option.

(2)	Amount refinanced on July 19, 2005 through a secured draw on our revolving line of credit facility which facility expires on October 30, 2007.

(3)	On May 12, 2005, we modified this loan to mature on December 31, 2005.

Boston Properties, Inc.

Second 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 June 30, 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.


			June 30, 2005
Total Assets:
Capitalized Property Value			$	11,083,645
Cash and Cash Equivalents				507,182
Investments in marketable securities				25,000
Undeveloped Land, at Cost				197,399
Development in Process, at Cost (including Joint Venture %)				113,049

Total Assets			$	11,926,275

Unencumbered Assets			$	5,237,516

Secured Debt (Fixed and Variable) (1)			$	3,406,401
Joint Venture Debt				200,717
Contingent Liabilities & Letters of Credit				19,378
Unsecured Debt (2)				1,475,000

Total Outstanding Debt			$	5,101,496

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)			$	68,818
Add: Interest Expense (per Consolidated Income Statement)				78,233
Add: Depreciation and Amortization (per Consolidated Income Statement)				65,850
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)				12,896

EBITDA				225,797
Add: Company share of unconsolidated joint venture EBITDA				6,187

Consolidated EBITDA			$	231,984

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)			$	78,233
Add: Company share of unconsolidated joint venture interest expense				3,235
Less: Amortization of financing costs				(823	)
Less: Interest expense funded by construction loan draws				—

Adjusted Interest Expense			$	80,645


Covenant Ratios and Related Data	Test		Actual
Total Outstanding Debt/Total Assets	Less than 60	%		42.8	%
Secured Debt/Total Assets	Less than 50	%		30.2	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x			2.88
Unencumbered Assets/ Unsecured Debt	Greater than 150	%		355.1	%

Unencumbered Consolidated EBITDA			$	90,351

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)				4.08

% of unencumbered Consoidated EBITDA to Consolidated EBITDA				38.9	%

# of unencumbered properties				67

(1)	Excludes Fair Value Adjustment of $22,489.

(2)	Excludes Debt Discount of $4,135.

Boston Properties, Inc.

Second Quarter 2005

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of June 30, 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)	$	7,617		$	31,975		$	22,601		$	3,678		$	3,224		$	2,163		$	6,237		$	5,315		$	82,810

Mortgage/Construction loans payable (4)	$	46,529		$	67,952		$	19,250		$	42,500		$	—		$	10,236		$	—		$	14,250		$	200,717

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 June 30, 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	$	5,167		$	6,567		$	3,505		$	6,661		$	19		$	—		$	—		$	1,956		$	23,875	(5)

EXPENSES
Operating		1,700			2,489			1,184			1,785			—			—			—			624			7,782

SUBTOTAL		3,467			4,078			2,321			4,876			19			—			—			1,332			16,093

Interest		1,811			2,745			626			2,231			—			—			—			611			8,024
Depreciation and amortization		1,702			1,275			1,051			1,412			—			—			—			661			6,101

NET INCOME	$	(46	)	$	58		$	644		$	1,233		$	19		$	—		$	—		$	60		$	1,968

BXP’s share of net income	$	(23	)	$	29		$	225		$	591	(6)	$	10		$	—		$	—		$	15		$	847
BXP’s share of depreciation & amortization		851			650			368			360			—			—			—			165			2,394

BXP’s share of Funds from Operations (FFO)	$	828		$	679		$	593		$	951		$	10		$	—		$	—		$	180		$	3,241

(1)	Property is currently not in service (i.e., 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 increased revenue by $1.6 million for the three months ended June 30, 2005.

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

Boston Properties, Inc.

Second 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%)*	$	424		$	901		$	978		$	1,061		$	1,152		$	63,436		$	67,952
Market Square North (50%)*		472			1,001			1,080			1,167			1,260			41,549			46,529
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) *		—			1,634			1,828			1,785			4,989			—			10,236	(2)

	$	896		$	3,536		$	23,136		$	4,567		$	8,036		$	146,296		$	186,467

Weighted Average Rate (2)		7.95	%		7.95	%		4.58	%		7.40	%		5.72	%		7.22	%		6.86	%

% of Total Debt		0.48	%		1.90	%		12.41	%		2.45	%		4.31	%		78.46	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	13.38	%	4.32	%	2.5 years
Fixed Rate Debt	86.62	%	7.25	%	6.6 years

Total Debt	100.00	%	6.86	%	6.0 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 $5.0 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.

Second 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	4	322,328	75.0	%	$	32.77	$	14,250	(2)	$	5,315

Results of Operations

(unaudited and in thousands)

for the three months ended June 30, 2005


	Worldgate Plaza
REVENUE
Total revenue	$	1,956	(3)

EXPENSES
Operating		624

SUBTOTAL		1,332

Interest		611
Depreciation and amortization		661

NET INCOME	$	60

BXP’s share of net income	$	15
BXP’s share of depreciation & amortization		165

BXP’s share of Funds from Operations (FFO)	$	180

(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. As of June 30, 2005, the interest rate was 4.04%.

(3)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $100 and ($100), respectively for the three months ended June 30, 2005.

Boston Properties, Inc.

Second Quarter 2005

PORTFOLIO OVERVIEW

Rentable Square Footage and Percentage of Net Operating Income of In-Service Properties by Location and Type of Property

for the Quarter Ended June 30, 2005 ^{(1) (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	7,751,838	(4)	20.5	%	545,206		0.8	%	152,009		—	8,449,053		27.06	%	2.7	%	24.0	%
Greater Washington	7,279,392	(5)	16.7	%	858,583		1.3	%	—		—	8,137,975		26.06	%	—		18.0	%
Greater San Francisco	4,535,478		13.4	%	—		—		—		—	4,535,478		14.53	%	—		13.4	%
Midtown Manhattan	7,781,589		39.0	%	—		—		—		—	7,781,589		24.92	%	—		39.0	%
Princeton/East Brunswick, NJ	2,319,185		4.1	%	—		—		—		—	2,319,185		7.43	%	—		4.1	%
Baltimore, MD	—		0.7	%(6)	—		—		—		—	—		—		—		0.7	%
Richmond, VA	—		0.8	%(6)	—		—		—		—	—		—		—		0.8	%

	29,667,482		95.2	%	1,403,789		2.1	%	152,009		—	31,223,280		100.00	%	2.7	%	100.0	%

% of Total	95.02	%			4.50	%			0.49	%		100.00	%

Percentage of Net Operating Income of In-Service Properties

by Location and Type of Property (2)


Geographic Area	CBD		Suburban		Total
Greater Boston	17.0	%	7.0	%	24.0	%
Greater Washington	5.3	%	12.7	%	18.0	%
Greater San Francisco	12.2	%	1.2	%	13.4	%
Midtown Manhattan	39.0	%	—		39.0	%
Princeton/East Brunswick, NJ	—		4.1	%	4.1	%
Baltimore, MD	0.7	%(6)	—		0.7	%
Richmond, VA	0.8	%(6)	—		0.8	%

Total	75.0	%	25.0	%	100.0	%


*Hotel Properties*

Hotel Properties	Number of Rooms	Square Feet
Long Wharf Marriott, Boston, MA	402	420,000
Cambridge Center Marriott, Cambridge, MA	431	330,400
Residence Inn by Marriott, Cambridge, MA	221	187,474

Total Hotel Properties	1,054	937,874


*Structured Parking*

	Number of Spaces	Square Feet
Total Structured Parking	28,152	8,293,175

(1)	For disclosures relating to our definition of In-Service Properties, see page 51.

(2)	For a quantitative reconciliation of consolidated net operating income (NOI) to net income in accordance with GAAP, see page 44. For disclosures relating to our use of NOI see page 51. NOI from unconsolidated joint ventures has been excluded from consolidated NOI.

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

(4)	Includes 344,609 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

(5)	Includes 586,482 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 539,215 square feet at 901 New York Avenue which is 25% owned by Boston Properties.

(6)	Riverfront Plaza and 100 East Pratt Street are included in Consolidated Net Operating Income through the date on which the properties were sold.

Boston Properties, Inc.

Second Quarter 2005

In-Service Property Listing

as of June 30, 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	97.3	%	$	38.19	Y	CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	853,686	98.0	%		49.82	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,389	87.9	%		33.74	Y	CBD
The Shops at the Prudential Center	CBD Boston MA	1	519,075	89.5	%		60.18	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	344,609	77.5	%		55.32	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	68.8	%		35.89	N	CBD
Three Cambridge Center	East Cambridge MA	1	108,152	81.6	%		27.38	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	%		35.79	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	525,894	80.0	%		29.74	Y	S
Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	63.7	%		25.57	N	S
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	%		25.27	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	%		36.78	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	93.0	%		21.08	Y	S
Bedford Business Park	Route 128 Northwest MA	1	90,000	16.3	%		19.51	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	%		31.19	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	100.0	%		26.72	N	S
Lexington Office Park	Route 128 Northwest MA	2	164,199	94.0	%		23.59	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	%		30.89	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	170,013	100.0	%		22.16	N	S

		40	7,751,838	91.6	%	$	36.98

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	8,449,053	90.5	%	$	35.48

Boston Properties, Inc.

Second Quarter 2005

In-Service Property Listing (continued)

as of June 30, 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	301,879	100.0	%	$	39.21	Y	CBD
		500 E Street, S. W.	Southwest Washington DC	1	246,057	100.0	%		34.42	N	CBD
		Metropolitan Square (51% ownership)	East End Washington DC	1	586,482	98.0	%		42.53	Y	CBD
		1301 New York Avenue	East End Washington DC	1	188,358	100.0	%		30.72	Y	CBD
		Market Square North (50% ownership)	East End Washington DC	1	401,279	100.0	%		48.58	Y	CBD
	(2)	901 New York Avenue (25% ownership)	CBD Washington DC	1	539,215	90.9	%		43.85	Y	CBD
		1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		41.47	N	CBD
		1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		48.77	Y	CBD
		Sumner Square	CBD Washington DC	1	207,620	100.0	%		37.96	Y	CBD
		Democracy Center	Montgomery County MD	3	682,563	81.2	%		32.48	Y	S
		Montvale Center	Montgomery County MD	1	120,971	96.9	%		24.25	Y	S
		2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		36.40	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	413,999	99.2	%		33.23	Y	S
		Two Freedom Square	Fairfax County VA	1	421,676	99.4	%		36.57	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	98.3	%		29.33	N	S
		One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		37.06	N	S
		New Dominion Technology Park -Building One	Fairfax County VA	1	235,201	100.0	%		31.84	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	7,279,392	97.2	%	$	36.23

Office/Technical
		Broad Run Business Park	Loudoun County	1	128,646	73.7	%		20.34	N	S
		7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		18.04	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	%		20.38	N	S
		7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		14.04	N	S
		8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		16.22	N	S
		7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.88	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	%		19.15	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	%	$	17.71

			Total Greater Washington:	41	8,137,975	97.1	%	$	34.29

Boston Properties, Inc.

Second Quarter 2005

In-Service Property Listing

as of June 30, 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	%	$	66.39	Y	CBD
	280 Park Avenue	Park Avenue NY	1	1,176,708	100.0	%		59.42	Y	CBD
	Citigroup Center	Park Avenue NY	1	1,569,022	95.1	%		63.32	Y	CBD
	399 Park Avenue	Park Avenue NY	1	1,681,641	100.0	%		73.19	N	CBD
(2)	Times Square Tower	Times Square NY	1	1,238,708	90.1	%		58.50	Y	CBD
	5 Times Square	Times Square NY	1	1,101,779	100.0	%		54.95	N	CBD

		Total Midtown Manhattan:	6	7,781,589	97.4	%	$	63.39

Princeton/East Brunswick, NJ
Office
	101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	25.23	Y	S
	104 Carnegie Center	Princeton NJ	1	102,830	87.9	%		32.55	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	68.8	%		29.36	Y	S
	206 Carnegie Center	Princeton NJ	1	161,763	100.0	%		29.87	Y	S
	210 Carnegie Center	Princeton NJ	1	161,776	74.5	%		30.38	N	S
	211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		27.50	N	S
	212 Carnegie Center	Princeton NJ	1	149,354	97.2	%		33.14	N	S
	214 Carnegie Center	Princeton NJ	1	150,774	78.4	%		30.30	Y	S
	302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		33.37	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	%		32.98	Y	S
	508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		28.47	Y	S
	510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		28.85	Y	S
	One Tower Center	East Brunswick NJ	1	412,222	71.1	%		35.95	N	S

		Total Princeton/East Brunswick, NJ:	16	2,319,185	88.4	%	$	31.06

Greater San Francisco
Office
	Embarcadero Center One	CBD San Francisco CA	1	826,093	89.0	%	$	41.56	Y	CBD
	Embarcadero Center Two	CBD San Francisco CA	1	772,852	91.9	%		45.44	Y	CBD
	Embarcadero Center Three	CBD San Francisco CA	1	766,140	87.6	%		39.08	Y	CBD
	Embarcadero Center Four	CBD San Francisco CA	1	933,771	94.7	%		60.75	Y	CBD
	West Tower	CBD San Francisco CA	1	474,523	74.1	%		43.16	Y	CBD
	611 Gateway	South San Francisco CA	1	256,302	100.0	%		31.97	N	S
	601 and 651 Gateway	South San Francisco CA	2	505,797	58.1	%		34.40	Y	S

		Total Greater San Francisco:	8	4,535,478	86.0	%	$	45.16

		Total In-Service Properties:	117	31,223,280	93.2	%	$	43.42

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

(2)	Not included in same property analysis.

Boston Properties, Inc.

Second 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	(1)	5.37	%
2	Citibank, N.A.	1,218,336		3.90	%
3	Ernst & Young	1,064,939		3.41	%
4	Shearman & Sterling	585,808		1.88	%
5	Lockheed Martin	568,265		1.82	%
6	Gillette Company	484,051		1.55	%
7	Lehman Brothers	436,723		1.40	%
8	Parametric Technology	380,987		1.22	%
9	Washington Group International	365,245		1.17	%
10	Finnegan Henderson Farabow	349,146	(2)	1.12	%
11	Genentech	345,633		1.11	%
12	Deutsche Bank Trust	344,886		1.10	%
13	O’Melveny & Myers	344,013		1.10	%
14	Kirkland & Ellis	340,815	(3)	1.09	%
15	Orbital Sciences	337,228		1.08	%
16	Northrop Grumman	330,965		1.06	%
17	Ann Taylor	318,567		1.02	%
18	Bingham McCutchen	301,858		0.97	%
19	Akin Gump Strauss Hauer & Feld	290,132		0.93	%
20	Accenture	263,878		0.85	%

	Total % of Portfolio Square Feet			33.14	%
	Total % of Portfolio Revenue			36.63	%

*Major Future Signed Deals*
Tenant		Property		Sq. Ft.
DLA Piper Rudnick Gray Cary US LLP		505 9th Street		231,748	(4)
Massachusetts Institute of Technology		Seven Cambridge Center		231,028	(4)
Genentech		651 Gateway		199,218	(5)
Lockheed Martin Corporation		12290 Sunrise Valley		182,000	(4)
Smithsonian Institution		Capital Gallery Expansion		100,127

(1)	Includes 96,600 square feet of space in properties in which Boston Properties has a 51% and 50% interest.

(2)	Includes 251,941 square feet of space in a property in which Boston Properties has a 25% interest.

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

(4)	Property is currently in development.

(5)	In addition, Genentech currently occupies 345,633 square feet included in the in-service portfolio.

TENANT DIVERSIFICATION (GROSS RENT) *

*	The classification of the Company’s tenants is based on the U.S. Government’s North American Industry Classification System (NAICS), which has replaced the Standard Industrial Classification (SIC) system.

Boston Properties, Inc.

Second Quarter 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	633,613		$	28,032,439		$	44.24		$	27,605,021		$	43.57		2.23	%
2006	1,560,647			67,891,917			43.50			67,825,513			43.46		5.50	%
2007	2,035,748			79,016,712			38.81			79,922,327			39.26		7.18	%
2008	1,643,595			69,547,178			42.31			71,753,250			43.66		5.80	%
2009	2,698,133			105,193,611			38.99			112,596,359			41.73		9.51	%
2010	1,827,923			81,819,895			44.76			87,488,184			47.86		6.44	%
2011	2,531,995			111,168,444			43.91			122,586,500			48.41		8.93	%
2012	2,482,971			116,163,001			46.78			124,249,586			50.04		8.75	%
2013	538,237			20,759,743			38.57			22,942,471			42.63		1.90	%
2014	1,896,954			68,561,508			36.14			75,592,212			39.85		6.69	%
Thereafter	8,887,093			429,432,815			48.32			511,057,692			57.51		31.33	%

Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-05		30-Jun-04			30-Jun-05			30-Jun-04			30-Jun-05			30-Jun-04
Midtown Manhattan	97.4	%		98.6	%		n/a			n/a			97.4	%	98.6	%
Greater Boston	92.5	%		93.6	%		90.6	%		85.8	%		91.6	%	90.2	%
Greater Washington	98.0	%		99.6	%		96.7	%		96.3	%		97.2	%	97.6	%
Greater San Francisco	88.8	%		88.8	%		72.2	%		54.6	%		86.0	%	83.2	%
Princeton/East Brunswick, NJ	—			n/a			88.4	%		89.6	%		88.4	%	89.6	%
Richmond, VA	n/a			91.7	%		n/a			n/a			n/a		91.7	%
Baltimore, MD	n/a			94.7	%		n/a			n/a			n/a		94.7	%

Total Portfolio	94.7	%		95.1	%		91.2	%		88.3	%		93.4	%	92.7	%

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

Boston Properties, Inc.

Second 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	13,408		$	241,588		$	18.02		$	241,588		$	18.02		0.96	%
2006	287,104			4,098,171			14.27			4,112,405			14.32		20.45	%
2007	321,900			5,806,971			18.04			6,023,879			18.71		22.93	%
2008	70,440			1,340,935			19.04			1,439,312			20.43		5.02	%
2009	45,508			952,464			20.93			978,450			21.50		3.24	%
2010	132,510			1,773,667			13.39			1,773,667			13.39		9.44	%
2011	137,321			2,469,292			17.98			2,569,292			18.71		9.78	%
2012	67,362			1,481,818			22.00			1,633,383			24.25		4.80	%
2013	—			—			—			—			—		—
2014	274,821			4,895,966			17.82			5,638,541			20.52		19.58	%
Thereafter	—			—			—			—			—		—

*Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-05		30-Jun-04			30-Jun-05			30-Jun-04			30-Jun-05			30-Jun-04
Midtown Manhattan	n/a			n/a			n/a			n/a			n/a		n/a
Greater Boston	100.0	%		100.0	%		100.0	%		100.0	%		100.0	%	100.0	%
Greater Washington	n/a			n/a			96.1	%		94.7	%		96.1	%	94.7	%
Greater San Francisco	n/a			n/a			n/a			n/a			n/a		n/a
Princeton/East Brunswick, NJ	n/a			n/a			n/a			n/a			n/a		n/a
Richmond, VA	n/a			n/a			n/a			n/a			n/a		n/a
Baltimore, MD	n/a			n/a			n/a			n/a			n/a		n/a

Total Portfolio	100.0	%		100.0	%		97.5	%		96.5	%		97.6	%	96.7	%

Boston Properties, Inc.

Second 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	30-Jun-05	30-Jun-04		30-Jun-05		30-Jun-04			30-Jun-05		30-Jun-04
Midtown Manhattan	n/a		n/a		n/a		n/a			n/a	n/a
Greater Boston	n/a		n/a		—		—			—	—
Greater Washington	n/a		n/a		n/a		n/a			n/a	n/a
Greater San Francisco	n/a		n/a		n/a		n/a			n/a	n/a
Princeton/East Brunswick, NJ	n/a		n/a		n/a		n/a			n/a	n/a
Richmond, VA	n/a		n/a		n/a		n/a			n/a	n/a
Baltimore, MD	n/a		n/a		n/a		n/a			n/a	n/a
Bucks County, PA	n/a		n/a		n/a		100.0	%		n/a	100.0	%

Total Portfolio	n/a		n/a		—		20.8	%		—	20.8	%

Boston Properties, Inc.

Second 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	44,622	$	2,658,739	$	59.58	(1)	$	2,743,435	$	61.48	(1)	3.50	%
2006	62,021		3,822,718		61.64	(1)		3,814,513		61.50	(1)	4.87	%
2007	34,052		2,075,447		60.95			2,114,653		62.10		2.67	%
2008	64,825		3,408,394		52.58			3,450,828		53.23		5.09	%
2009	66,928		3,282,749		49.05			3,391,288		50.67		5.25	%
2010	102,941		3,580,039		34.78			3,920,213		38.08		8.08	%
2011	43,217		2,898,593		67.07			3,272,778		75.73		3.39	%
2012	101,697		4,986,091		49.03			5,512,791		54.21		7.98	%
2013	61,386		5,523,356		89.98			6,013,126		97.96		4.82	%
2014	63,936		4,384,574		68.58			5,168,618		80.84		5.02	%
Thereafter	628,709		33,729,537		53.65			41,119,844		65.40		49.34	%

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $32.08 and $32.08 in 2005 and $51.17 and $51.25 in 2006.

Boston Properties, Inc.

Second 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	691,643		$	30,932,766		$	44.72		$	30,590,044		$	44.23		2.2	%
2006	1,909,772			75,812,807			39.70			75,752,430			39.67		6.1	%
2007	2,391,700			86,899,129			36.33			88,060,859			36.82		7.7	%
2008	1,778,860			74,296,507			41.77			76,643,391			43.09		5.7	%
2009	2,810,569			109,428,824			38.93			116,966,097			41.62		9.0	%
2010	2,063,374			87,173,601			42.25			93,182,064			45.16		6.6	%
2011	2,712,533			116,536,328			42.96			128,428,570			47.35		8.7	%
2012	2,652,030			122,630,910			46.24			131,395,759			49.55		8.5	%
2013	599,623			26,283,099			43.83			28,955,598			48.29		1.9	%
2014	2,235,711			77,842,048			34.82			86,399,371			38.65		7.2	%
Thereafter	9,515,802			463,162,353			48.67			552,177,536			58.03		30.5	%

*Occupancy By Location*

	CBD					Suburban						Total
Location	30-Jun-05		30-Jun-04			30-Jun-05			30-Jun-04			30-Jun-05			30-Jun-04
Midtown Manhattan	97.4	%		98.6	%		n/a			n/a			97.4	%	98.6	%
Greater Boston	92.6	%		93.7	%		88.3	%		84.2	%		90.5	%	89.2	%
Greater Washington	98.0	%		99.6	%		96.6	%		96.0	%		97.1	%	97.2	%
Greater San Francisco	88.8	%		88.8	%		72.2	%		56.9	%		86.0	%	83.4	%
Princeton/East Brunswick, NJ	n/a			n/a			88.4	%		89.6	%		88.4	%	89.6	%
Richmond, VA	n/a			91.7	%		n/a			n/a			n/a		91.7	%
Baltimore, MD	n/a			94.7	%		n/a			n/a			n/a		94.7	%
Bucks County, PA	n/a			n/a			n/a			100.0	%		n/a		100.0	%

Total Portfolio	94.7	%		95.1	%		90.8	%		88.2	%		93.2	%	92.5	%

Boston Properties, Inc.

Second 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	384,364	$	17,813,857	$	46.35	$	17,338,810	$	45.11	—	$	—	$	—	$	—	$	—
2006	437,462		15,162,065		34.66		15,175,222		34.69	253,704		3,532,734		13.92		3,532,734		13.92
2007	589,078		20,843,631		35.38		21,129,031		35.87	144,140		2,018,869		14.01		2,218,009		15.39
2008	596,344		18,438,842		30.92		19,127,299		32.07	—		—		—		—		—
2009	1,217,320		42,186,914		34.66		45,859,765		37.67	—		—		—		—		—
2010	385,308		11,519,698		29.90		12,120,573		31.46	—		—		—		—		—
2011	912,188		34,168,764		37.46		38,201,962		41.88	80,000		1,664,635		20.81		1,764,636		22.06
2012	668,750		24,254,427		36.27		26,207,208		39.19	67,362		1,481,818		22.00		1,633,383		24.25
2013	262,145		11,767,645		44.89		12,850,497		49.02	—		—		—		—		—
2014	445,305		14,781,098		33.19		16,201,581		36.38	—		—		—		—		—
Thereafter	603,530		21,965,137		36.39		25,745,588		42.66	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	18,933	$	1,822,175	$	96.24	$	1,906,871	$	100.72	(1)
2006	—		—		—		—		—	16,074		1,702,930		105.94		1,689,930		105.13	(1)
2007	—		—		—		—		—	5,183		583,819		112.64		583,819		112.64
2008	—		—		—		—		—	5,467		582,858		106.61		546,858		100.03
2009	—		—		—		—		—	12,689		1,202,019		94.73		1,218,131		96.00
2010	—		—		—		—		—	41,531		784,911		18.90		787,101		18.95
2011	—		—		—		—		—	13,527		875,337		64.71		909,227		67.22
2012	—		—		—		—		—	52,949		2,038,985		38.51		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	—		—		—		—		—	427,389		19,028,024		44.52		21,487,166		50.28

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $31.42 and $31.42 in 2005 and $65.58 and $65.58 in 2006.

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2005	123,085		7,229,267		58.73		6,754,221		54.87	—		—		—		—		—
Q4 2005	261,279		10,584,590		40.51		10,584,590		40.51	—		—		—		—		—

Total 2005	384,364	$	17,813,857	$	46.35	$	17,338,810	$	45.11	—		—		—		—		—

Q1 2006	27,051	$	940,989	$	34.79	$	940,989	$	34.79	—	$	—	$	—	$	—	$	—
Q2 2006	97,906		4,077,500		41.65		4,077,500		41.65	—		—		—		—		—
Q3 2006	220,352		6,769,154		30.72		6,758,786		30.67	253,704		3,532,734		13.92		3,532,734		13.92
Q4 2006	92,153		3,374,422		36.62		3,397,947		36.87	—		—		—		—		—

Total 2006	437,462	$	15,162,065	$	34.66	$	15,175,222	$	34.69	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	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	10		558,501		55,850.10		558,501		55,850.10
Q4 2005	—		—		—		—		—	18,923		1,263,674		66.78		1,348,370		71.26

Total 2005	—		—	$	—	$	—	$	—	18,933	$	1,822,175	$	96.24	$	1,906,871	$	100.72	(1)

Q1 2006	—	$	—	$	—		—	$	—	10,083	$	742,351	$	73.62	$	763,351	$	75.71
Q2 2006	—		—		—		—		—	5,591		599,000		107.14		563,000		100.70
Q3 2006	—		—		—		—		—	2		109,000		54,499.98		111,000		55,500.00
Q4 2006	—		—		—		—		—	398		252,579		634.62		252,579		634.62

Total 2006	—	$	—	$	—	$	—	$	—	16,074	$	1,702,930	$	105.94	$	1,689,930	$	105.13	(1)

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $31.42 and $31.42 in 2005 and $65.58 and $65.58 in 2006.

Boston Properties, Inc.

Second Quarter 2005

IN-SERVICE GREATER WASHINGTON PROPERTIES

Lease Expirations - Greater Washington


	OFFICE									OFFICE/TECHNICAL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	108,984	$	4,020,929	$	36.89	$	4,068,557	$	37.33	13,408	$	241,588	$	18.02	$	241,588	$	18.02
2006	252,098		7,847,458		31.13		7,961,054		31.58	33,400		565,437		16.93		579,671		17.36
2007	346,119		12,046,555		34.80		12,206,906		35.27	177,760		3,788,101		21.31		3,805,870		21.41
2008	226,837		7,649,223		33.72		8,170,673		36.02	70,440		1,340,935		19.04		1,439,312		20.43
2009	868,211		33,881,705		39.02		36,087,165		41.56	45,508		952,464		20.93		978,450		21.50
2010	668,666		27,018,086		40.41		30,317,080		45.34	132,510		1,773,667		13.39		1,773,667		13.39
2011	724,703		24,402,480		33.67		27,821,528		38.39	57,321		804,657		14.04		804,657		14.04
2012	716,784		26,095,493		36.41		30,553,002		42.63	—		—		—		—		—
2013	59,801		1,666,934		27.87		1,981,163		33.13	—		—		—		—		—
2014	480,682		17,250,407		35.89		19,321,404		40.20	274,821		4,895,966		17.82		5,638,541		20.52
Thereafter	2,493,740		90,529,780		36.30		105,618,895		42.35	—		—		—		—		—

	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	—		—		—		—		—	11,356		400,884		35.30		400,884		35.30
2007	—		—		—		—		—	12,610		381,068		30.22		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		166,948		22.20		192,976		25.67
2013	—		—		—		—		—	13,377		608,273		45.47		727,884		54.41
2014	—		—		—		—		—	20,753		456,347		21.99		564,204		27.19
Thereafter	—		—		—		—		—	42,030		1,306,931		31.10		2,025,105		48.18

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2005	26,214		1,061,881		40.51		1,061,881		40.51	—		—		—		—		—
Q4 2005	82,770		2,959,048		35.75		3,006,676		36.33	13,408		241,588		18.02		241,588		18.02

Total 2005	108,984	$	4,020,929	$	36.89	$	4,068,557	$	37.33	13,408	$	241,588	$	18.02	$	241,588	$	18.02

Q1 2006	82,781	$	2,709,331	$	32.73	$	2,710,850	$	32.75	—	$	—	$	—	$	—	$	—
Q2 2006	28,489		1,002,178		35.18		1,016,481		35.68	—		—		—		—		—
Q3 2006	124,021		3,721,574		30.01		3,804,507		30.68	33,400		565,437		16.93		579,671		17.36
Q4 2006	16,807		414,375		24.65		429,215		25.54	—		—		—		—		—

Total 2006	252,098	$	7,847,458	$	31.13	$	7,961,054	$	31.58	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		182,093		42.97		182,093		42.97
Q3 2006	—		—		—		—		—	2,869		112,726		39.29		112,726		39.29
Q4 2006	—		—		—		—		—	8		40		5.00		40		5.00

Total 2006	—	$	—	$	—	$	—	$	—	11,356	$	400,884	$	35.30		400,884	$	35.30

Boston Properties, Inc.

Second 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	80,166	$	4,084,134	$	50.95	$	4,084,134	$	50.95	—	$	—	$	—	$	—	$	—
2006	596,818		28,719,370		48.12		28,523,774		47.79	—		—		—		—		—
2007	422,439		19,797,248		46.86		19,845,852		46.98	—		—		—		—		—
2008	286,614		10,887,283		37.99		11,228,102		39.17	—		—		—		—		—
2009	179,337		8,759,363		48.84		8,881,967		49.53	—		—		—		—		—
2010	244,219		13,425,343		54.97		14,234,046		58.28	—		—		—		—		—
2011	210,950		18,635,867		88.34		18,916,264		89.67	—		—		—		—		—
2012	119,262		4,986,092		41.81		5,405,309		45.32	—		—		—		—		—
2013	113,211		4,074,990		35.99		4,526,529		39.98	—		—		—		—		—
2014	493,119		16,702,241		33.87		18,494,044		37.50	—		—		—		—		—
Thereafter	1,129,110		42,241,071		37.41		48,192,973		42.68	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	24,194	$	726,114	$	30.01	$	726,114	$	30.01
2006	—		—		—		—		—	20,067		1,087,854		54.21		1,092,648		54.45
2007	—		—		—		—		—	16,259		1,110,560		68.30		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	—		—		—		—		—	37,386		1,723,160		46.09		1,917,798		51.30
2011	—		—		—		—		—	3,474		126,105		36.30		222,376		64.01
2012	—		—		—		—		—	35,590		2,093,760		58.83		2,406,665		67.62
2013	—		—		—		—		—	8,408		579,727		68.95		627,590		74.64
2014	—		—		—		—		—	10,338		630,185		60.96		713,912		69.06
Thereafter	—		—		—		—		—	30,450		1,462,906		48.04		1,658,486		54.47

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2005	53,439		3,027,922		56.66		3,027,922		56.66	—		—		—		—		—
Q4 2005	26,727		1,056,212		39.52		1,056,212		39.52	—		—		—		—		—

Total 2005	80,166	$	4,084,134	$	50.95	$	4,084,134	$	50.95	—		—		—		—		—

Q1 2006	180,416	$	6,544,997	$	36.28	$	6,207,220	$	34.41	—	$	—	$	—	$	—	$	—
Q2 2006	99,298		7,521,546		75.75		7,521,546		75.75	—		—		—		—		—
Q3 2006	123,459		5,080,938		41.15		5,114,850		41.43	—		—		—		—		—
Q4 2006	193,645		9,571,889		49.43		9,680,158		49.99	—		—		—		—		—

Total 2006	596,818	$	28,719,370	$	48.12	$	28,523,774	$	47.79	—		—		—		—		—


	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	—		—		—		—		—	11,289		526,015		46.60		526,015		46.60
Q4 2005	—		—		—		—		—	12,905		200,099		15.51		200,099		15.51

Total 2005	—	$	—	$	—	$	—	$	—	24,194	$	726,114	$	30.01	$	726,114	$	30.01

Q1 2006	—	$	—	$	—	$	—	$	—	3,194	$	370,745	$	116.08	$	370,745		116.08
Q2 2006	—		—		—		—		—	987		59,847		60.63		59,847		60.63
Q3 2006	—		—		—		—		—	1,314		121,811		92.70		126,605		96.35
Q4 2006	—		—		—		—		—	14,572		535,452		36.75		535,452		36.75

Total 2006	—		—		—		—		—	20,067	$	1,087,854	$	54.21	$	1,092,648	$	54.45

Boston Properties, Inc.

Second 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	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2006	197,440		13,431,847		68.03		13,431,847		68.03	—		—		—		—		—
2007	155,097		10,100,282		65.12		10,123,716		65.27	—		—		—		—		—
2008	495,468		31,408,621		63.39		31,991,940		64.57	—		—		—		—		—
2009	180,745		12,136,422		67.15		12,983,718		71.83	—		—		—		—		—
2010	328,453		23,089,742		70.30		23,730,937		72.25	—		—		—		—		—
2011	414,237		25,261,485		60.98		28,398,596		68.56	—		—		—		—		—
2012	972,675		60,643,734		62.35		61,891,188		63.63	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	193,274		11,358,463		58.77		12,244,940		63.36	—		—		—		—		—
Thereafter	4,437,210		269,318,302		60.70		324,385,117		73.11	—		—		—		—		—

	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	—		—		—		—		—	14,524		631,049		43.45		631,049		43.45
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	1,682		64,848		38.55		68,625		40.80
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		1,480,904		93.16		1,655,611		104.15
2014	—		—		—		—		—	12,943		1,329,159		102.69		1,684,759		130.17
Thereafter	—		—		—		—		—	128,840		11,931,676		92.61		15,949,087		123.79

Boston Properties, Inc.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	—		—		—		—		—

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

Q1 2006	30,010	$	2,167,130	$	72.21	$	2,167,130	$	72.21	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	30,100		1,996,452		66.33		1,996,452		66.33	—		—		—		—		—
Q4 2006	137,330		9,268,265		67.49		9,268,265		67.49	—		—		—		—		—

Total 2006	197,440	$	13,431,847	$	68.03	$	13,431,847	$	68.03	—		—		—		—		—


	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	—		—		—		—		—	14,174		605,197		42.70		605,197		42.70

Total 2006	—	$	—	$	—	$	—	$	—	14,524	$	631,049	$	43.45	$	631,049	$	43.45

Boston Properties, Inc.

Second 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	60,099	$	2,113,520	$	35.17	$	2,113,520	$	35.17	—	$	—	$	—	$	—	$	—
2006	76,829		2,731,177		35.55		2,733,616		35.58	—		—		—		—		—
2007	523,015		16,228,996		31.03		16,616,822		31.77	—		—		—		—		—
2008	38,332		1,163,210		30.35		1,235,236		32.22	—		—		—		—		—
2009	252,520		8,229,207		32.59		8,783,744		34.78	—		—		—		—		—
2010	201,277		6,767,025		33.62		7,085,547		35.20	—		—		—		—		—
2011	269,917		8,699,847		32.23		9,248,150		34.26	—		—		—		—		—
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		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		5,378,525		24.06		7,115,118		31.83	—		—		—		—		—

	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.

Second 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	—		—		—		—		—	—		—		—		—		—
Q3 2005	37,422		1,286,024		34.37		1,286,024		34.37	—		—		—		—		—
Q4 2005	22,677		827,496		36.49		827,496		36.49	—		—		—		—		—

Total 2005	60,099	$	2,113,520	$	35.17	$	2,113,520	$	35.17	—		—		—		—		—

Q1 2006	8,277	$	296,092	$	35.77	$	296,092	$	35.77	—	$	—	$	—	$	—	$	—
Q2 2006	28,238		1,035,567		36.67		1,038,006		36.76	—		—		—		—		—
Q3 2006	4,251		165,750		38.99		165,750		38.99	—		—		—		—		—
Q4 2006	36,063		1,233,769		34.21		1,233,769		34.21	—		—		—		—		—

Total 2006	76,829	$	2,731,177	$	35.55	$	2,733,616	$	35.58	—		—		—		—		—


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

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

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

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

Boston Properties, Inc.

Second 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	299,522	$	16,673,465	(1)	$	55.67	$	16,283,114	(1)	$	54.36	42,437	$	1,679,616	$	39.58	$	1,685,470	$	39.72
2006	132,433	$	6,805,754	(2)		51.39	$	6,775,175	(2)		51.16	26,624		981,151		36.85		990,246		37.19
2007	159,800	$	8,346,257			52.23	$	8,376,029			52.42	275,734		9,673,611		35.08		9,753,893		35.37
2008	197,144	$	7,277,814			36.92	$	7,329,914			37.18	40,973		1,714,539		41.85		1,818,969		44.39
2009	783,954	$	28,584,511			36.46	$	31,544,288			40.24	851,466		33,454,002		39.29		35,604,632		41.82
2010	168,445	$	5,740,931			34.08	$	6,020,996			35.74	443,414		18,979,322		42.80		21,014,795		47.39
2011	459,832	$	23,937,542			52.06	$	26,932,564			58.57	196,512		8,467,086		43.09		9,576,306		48.73
2012	314,591	$	14,148,006			44.97	$	15,045,862			47.83	95,691		3,784,200		39.55		3,846,387		40.20
2013	285,850	$	14,622,096			51.15	$	15,852,538			55.46	1,702		92,095		54.11		112,525		66.11
2014	414,444	$	15,512,188			37.43	$	16,995,310			41.01	63,796		2,991,851		46.90		3,731,611		58.49
Thereafter	868,748	$	36,083,163			41.53	$	42,340,657			48.74	962,000		43,453,849		45.17		54,099,154		56.24

	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	411	$	55,691		$	135.50	$	55,691		$	135.50	86,932	$	4,060,611	$	46.71	$	4,060,611	$	46.71
2006	211,964		14,062,896			66.35		14,062,896			66.35	580,316		27,426,026		47.26		27,226,949		46.92
2007	155,097		10,100,282			65.12		10,123,716			65.27	400,632		19,911,366		49.70		20,025,106		49.98
2008	497,150		31,473,469			63.31		32,060,566			64.49	284,386		11,857,659		41.70		12,193,130		42.88
2009	180,745		12,136,422			67.15		12,983,718			71.83	202,267		9,943,405		49.16		10,082,687		49.85
2010	333,483		23,467,365			70.37		24,158,560			72.44	270,573		14,893,001		55.04		15,837,396		58.53
2011	429,232		26,679,787			62.16		30,005,148			69.90	214,424		18,761,971		87.50		19,138,640		89.26
2012	978,314		61,330,131			62.69		62,721,149			64.11	149,112		6,959,313		46.67		7,676,226		51.48
2013	15,896		1,480,904			93.16		1,655,611			104.15	121,619		4,654,717		38.27		5,154,119		42.38
2014	206,217		12,687,623			61.53		13,929,699			67.55	247,155		9,137,369		36.97		9,874,919		39.95
Thereafter	4,566,050		281,249,978			61.60		340,334,204			74.54	865,369		34,778,560		40.19		38,780,682		44.81

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

(1)	Includes 18,933 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $31.42 and rent on expiring leases with future step-up is $31.42 per square foot in 2005.

(2)	Includes 16,074 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $65.58 and rent on expiring leases with future step-up is $65.58 per square foot in 2006.

Boston Properties, Inc.

Second 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	103,775	$	2,962,567	$	28.55	$	2,962,567	$	28.55	81,039	$	2,637,660	$	32.55	$	2,679,434	$	33.06
2006	574,807		13,591,976		23.65		13,622,712		23.70	270,230		7,832,628		28.99		7,951,363		29.42
2007	578,601		15,100,061		26.10		15,554,829		26.88	260,755		6,542,113		25.09		6,650,979		25.51
2008	404,667		11,743,886		29.02		12,344,243		30.50	274,456		8,041,392		29.30		8,587,877		31.29
2009	446,055		14,804,422		33.19		15,533,608		34.82	85,807		2,107,370		24.56		2,250,128		26.22
2010	258,394		6,563,678		25.40		6,886,678		26.65	376,756		10,506,777		27.89		11,863,644		31.49
2011	545,883		12,771,195		23.40		13,943,260		25.54	596,733		17,218,899		28.86		19,584,501		32.82
2012	474,470		13,627,225		28.72		14,877,918		31.36	628,612		22,478,242		35.76		26,899,591		42.79
2013	—		—		—		—		—	71,476		2,183,112		30.54		2,596,522		36.33
2014	50,763		1,237,793		24.38		1,412,013		27.82	712,460		19,610,868		27.53		21,792,539		30.59
Thereafter	162,171		4,909,998		30.28		4,892,097		30.17	1,573,770		48,382,863		30.74		53,544,846		34.02

	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	—	$	—	$	—	$	—	$	—	17,428	$	749,638	$	43.01	$	749,638	$	43.01
2006	—		—		—		—		—	36,569		2,381,199		65.12		2,389,473		65.34
2007	—		—		—		—		—	38,066		996,441		26.18		959,484		25.21
2008	—		—		—		—		—	41,752		1,024,538		24.54		1,073,455		25.71
2009	—		—		—		—		—	7,755		169,484		21.85		183,291		23.64
2010	—		—		—		—		—	11,032		255,502		23.16		314,448		28.50
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	5,740		120,540		21.00		135,748		23.65
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	256,302		8,195,057		31.97		9,333,037		36.41
Thereafter	—		—		—		—		—	294,191		8,925,417		30.34		11,070,777		37.63

	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	60,099	$	2,113,520	$	35.17	$	2,113,520	$	35.17	—	$	—	$	—	$	—	$	—
2006	76,829		2,731,177		35.55		2,733,616		35.58	—		—		—		—		—
2007	523,015		16,228,996		31.03		16,616,822		31.77	—		—		—		—		—
2008	38,332		1,163,210		30.35		1,235,236		32.22	—		—		—		—		—
2009	252,520		8,229,207		32.59		8,783,744		34.78	—		—		—		—		—
2010	201,277		6,767,025		33.62		7,085,547		35.20	—		—		—		—		—
2011	269,917		8,699,847		32.23		9,248,150		34.26	—		—		—		—		—
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		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		5,378,525		24.06		7,115,118		31.83	—		—		—		—		—

Boston Properties, Inc.

Second Quarter 2005

HOTEL PERFORMANCE

Long Wharf Marriott - Boston


	Second Quarter 2005			Second Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		85.8	%		88.0	%	-2.5	%		79.2	%		82.9	%	-4.5	%
Average Daily Rate	$	232.08		$	216.07		7.4	%	$	204.21		$	191.10		6.9	%
Revenue per available room	$	199.05		$	190.14		4.7	%	$	161.77		$	158.32		2.2	%

Cambridge Center Marriott

	Second Quarter 2005			Second Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		78.8	%		85.9	%	-8.3	%		72.2	%		75.5	%	-4.4	%
Average Daily Rate	$	191.71		$	168.27		13.9	%	$	169.85		$	154.16		10.2	%
Revenue per available room	$	151.13		$	144.49		4.6	%	$	122.60		$	116.37		5.4	%

Residence Inn by Marriott

	Second Quarter 2005			Second Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		83.1	%		87.8	%	-5.4	%		81.2	%		79.3	%	2.4	%
Average Daily Rate	$	151.39		$	138.33		9.4	%	$	137.42			126.74		8.4	%
Revenue per available room	$	125.76		$	121.40		3.6	%	$	111.59			100.46		11.1	%

Total Hotel Performance

	Second Quarter 2005			Second Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		82.4	%		87.1	%	-5.4	%		76.8	%		79.1	%	-2.9	%
Average Daily Rate	$	198.65		$	180.22		10.2	%	$	176.16		$	162.50		8.4	%
Revenue per available room	$	164.09		$	157.06		4.5	%	$	135.23		$	129.03		4.8	%

Boston Properties, Inc.

Second Quarter 2005

OCCUPANCY ANALYSIS


*Same Property Occupancy ⁽¹⁾ - - By Location*

	CBD				Suburban				Total
Location	30-Jun-05		30-Jun-04		30-Jun-05		30-Jun-04		30-Jun-05		30-Jun-04
Greater Boston	92.6	%	93.7	%	88.3	%	84.6	%	90.5	%	89.4	%
Greater Washington	99.5	%	99.8	%	96.4	%	96.3	%	97.4	%	97.4	%
Midtown Manhattan	98.8	%	98.6	%	—		—		98.8	%	98.6	%
Princeton/East Brunswick, NJ	—		—		88.4	%	89.6	%	88.4	%	89.6	%
Greater San Francisco	88.8	%	88.4	%	72.2	%	54.6	%	86.0	%	82.7	%

Total Portfolio	95.0	%	95.2	%	90.6	%	88.4	%	93.2	%	92.4	%


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

	CBD				Suburban				Total
	30-Jun-05		30-Jun-04		30-Jun-05		30-Jun-04		30-Jun-05		30-Jun-04
Total Office Portfolio	95.0	%	95.2	%	91.0	%	88.5	%	93.5	%	92.6	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	97.6	%	97.6	%	97.7	%
Total Industrial Portfolio	—		—		—		—		—		—

Total Portfolio	95.0	%	95.2	%	90.6	%	88.4	%	93.2	%	92.4	%

(1)	For disclosures related to our definition of Same Property, see page 51.

Boston Properties, Inc.

Second Quarter 2005

SAME PROPERTY PERFORMANCE


*Office, Office/Technical, Industrial and Hotel Properties*

	Office		Office/Technical			Industrial			Hotel (1)			Total
Number of Properties	95			17			1			3			116
Square feet	27,330,280			1,403,789			152,009			937,874			29,823,952
Percent of in-service properties	92.1	%		100.0	%		100.0	%		100.0	%		92.7	%
Occupancy @ 6/30/04	92.6	%		97.7	%		0.0	%		—			92.4	%
Occupancy @ 6/30/05	93.5	%		97.6	%		0.0	%		—			93.2	%
Percent change from 2nd quarter 2005 over 2nd quarter 2004 (2):
Rental revenue	2.1	%		5.0	%		See Note 4			4.7	%		2.3	%
Operating expenses and real estate taxes	6.3	%		-7.7	%		See Note 4			4.5	%		5.9	%
Net Operating Income (3)	0.0	%		8.6	%		See Note 4			5.1	%		0.4	%
Net Operating Income (3) - without hotels													0.3	%
Rental revenue - cash basis	1.6	%		6.3	%		See Note 4			4.7	%		1.9	%
Net Operating Income (3) - cash basis (4)	-0.8	%		10.4	%		See Note 4			5.1	%		-0.4	%
Net Operating Income (3) - cash basis(4) - without hotels													-0.5	%

*Same Property Lease Analysis - quarter ended June 30, 2005*

			Office			Office/Technical			Industrial			Total
Vacant space available @ 4/1/05 (sf)				1,929,241			33,799			152,009			2,115,049
Square footage of leases expiring or terminated 4/1/05-6/30/05				809,078			—			—			809,078

Total space for lease (sf)				2,738,319			33,799			152,009			2,924,127

New tenants (sf)				606,903			—			—			606,903
Renewals (sf)				351,847			—			—			351,847

Total space leased (sf)				958,750			—			—			958,750

Space available @ 6/30/05 (sf)				1,779,569			33,799			152,009			1,965,377

Net (increase)/decrease in available space (sf)				149,672			—			—			149,672
Average lease term (months)				90			—			—			90
Average free rent (days)				39			—			—			39
2nd generation TI/Comm PSF			$	30.26		$	—		$	—		$	30.26
Increase (decrease) in 2nd generation gross rents (5)				-3.99	%		—			—			-3.99	%
Increase (decrease) in 2nd generation net rents (5)				-2.83			—			—			-2.83	%

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

(2)	See page 44 for a quantitative reconciliation.

(3)	For a quantitative reconciliation of Net Operating Income (NOI) to net income in accordance with GAAP, see page 44. For disclosures relating to our use of NOI, see page 51.

(4)	For a quantitative reconciliation of NOI to NOI on a cash basis, see page 44. For disclosures relating to our use of NOI, see page 51.

(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 668,479 square feet.

Boston Properties, Inc.

Second Quarter 2005

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	6/30/2005			6/30/2004
	*(in thousands)*
Net income available to common shareholders	$	166,634		$	87,118
Gains on sales of real estate from discontinued operations, net of minority interest		(8,389	)		(19,589	)
Income from discontinued operations, net of minority interest		—			(710	)
Gains on sales of real estate, net of minority interest		(102,073	)		(1,377	)
Minority interest in Operating Partnership		14,965			17,776
Income from unconsolidated joint ventures		(847	)		(879	)
Minority interest in property partnerships		(1,472	)		(1,292	)

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		68,818			81,047
Add:
Depreciation and amortization		65,850			60,366
Interest expense		78,233			74,789
General and administrative expense		14,252			12,493
Losses from early extinguishments of debt		12,896			—
Subtract:
Interest and other income		(2,937	)		(1,090	)
Development and management services income		(4,137	)		(5,961	)

Consolidated Net Operating Income	$	232,975		$	221,644

Same Property Net Operating Income	$	206,332		$	205,473
Net operating income from non Same Properties (1)		22,664			16,171
Termination income		3,979			—

Consolidated Net Operating Income	$	232,975		$	221,644

Same Property Net Operating Income	$	206,332		$	205,473
Less straight line rent and fair value lease revenue		11,042			9,491

Same Property Net Operating Income - cash basis	$	195,290		$	195,982

(1)	See pages 20-22 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Second 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
	30-Jun-05		30-Jun-04		$ Change			% Change		30-Jun-05		30-Jun-04		$ Change			% Change		30-Jun-05		30-Jun-04			$ Change		% Change
Rental Revenue	$	299,624	$	289,641						$	5,916	$	5,635						$	129	$	2
Less Termination Income		3,979		—							—		—							—		—

Rental revenue - subtotal		295,645		289,641		6,004		2.1	%		5,916		5,635		281		5.0	%		129		2			127	6350.0	%
Operating expenses and real estate taxes		100,166		94,237		5,929		6.3	%		1,157		1,253		(96	)	-7.7	%		121		105			16	15.2	%

Net Operating Income (1)	$	195,479	$	195,404	$	75		0.0	%	$	4,759	$	4,382	$	377		8.6	%	$	8	$	(103	)	$	111	107.8	%

Rental revenue - subtotal	$	295,645	$	289,641						$	5,916	$	5,635						$	129	$	2
Less straight line rent and fair value lease revenue		10,961		9,347		1,614		17.3	%		80		143		(63	)	-44.1	%		—		—			—	0.0	%

Rental revenue - cash basis		284,684		280,294		4,390		1.6	%		5,836		5,492		344		6.3	%		129		2			127	6350.0	%
Less:
Operating expenses and real estate taxes		100,166		94,237		5,929		6.3	%		1,157		1,253		(96	)	-7.7	%		121		105			16	15.2	%

Net Operating Income (2) - cash basis	$	184,518	$	186,057	$	(1,539	)	-0.8	%	$	4,679	$	4,239	$	440		10.4	%	$	8	$	(103	)	$	111	-107.8	%


	Hotel								Total
	For the three months ended				$ Change		% Change		For the three months ended				$ Change			% Change
	30-Jun-05		30-Jun-04		$ Change		% Change		30-Jun-05		30-Jun-04		$ Change			% Change
Rental Revenue	$	20,066	$	19,166					$	325,735	$	314,444
Less Termination Income		—		—						3,979		—

Rental revenue - subtotal		20,066		19,166	$	900	4.7	%		321,756		314,444		7,312		2.3	%
Operating expenses and real estate taxes		13,980		13,376		604	4.5	%		115,424		108,971		6,453		5.9	%

Net Operating Income (1)	$	6,086	$	5,790	$	296	5.1	%	$	206,332	$	205,473	$	859		0.4	%

Rental revenue - subtotal	$	20,066	$	19,166					$	321,756	$	314,444
Less straight line rent and fair value lease revenue		1		1		—	0.0	%		11,042		9,491		1,551		16.3	%

Rental revenue - cash basis		20,065		19,165		900	4.7	%		310,714		304,953		5,761		1.9	%
Less:
Operating expenses and real estate taxes		13,980		13,376		604	4.5	%		115,424		108,971		6,453		5.9	%

Net Operating Income (2) - cash basis	$	6,085	$	5,789	$	296	5.1	%	$	195,290	$	195,982	$	(692	)	-0.4	%

(1)	For a quantitative reconciliation of net operating income (NOI) to net income in accordance with GAAP, see page 44. For disclosures relating to our use of NOI see page 51.

(2)	For a quantitative reconciliation of NOI to NOI on a cash basis see page 44. For disclosures relating to our use of NOI see page 51.

Boston Properties, Inc.

Second Quarter 2005

LEASING ACTIVITY

All In-Service Properties - quarter ended June 30, 2005


	Office			Office/Technical		Industrial		Total
Vacant space available @ 4/1/2005 (sf)		2,460,389			33,799		152,009		2,646,197
Property dispositions/ assets taken out of service (sf)		(283,277	)		—		—		(283,277	)
Property acquisitions/ assets placed in-service (sf)		—			—		—		—
Leases expiring or terminated 4/1/2005-6/30/2005 (sf)		809,078			—		—		809,078

Total space for lease (sf)		2,986,190			33,799		152,009		3,171,998

New tenants (sf)		683,522			—		—		683,522
Renewals (sf)		351,847			—		—		351,847

Total space leased (sf)		1,035,369			—		—		1,035,369	(1)

Space available @ 6/30/2005 (sf)		1,950,821			33,799		152,009		2,136,629

Net (increase)/decrease in available space (sf)		509,568			—		—		509,568
Average lease term (months)		90			—		—		90
Average free rent (days)		39			—		—		39
2nd generation TI/Comm PSF	$	30.26		$	—	$	—	$	30.26
Increase (decrease) in 2nd generation gross rents (2)		-3.99	%		—		—		-3.99	%
Increase (decrease) in 2nd generation net rents (3)		-2.83	%		—		—		-2.83	%

(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 265,174.

(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 265,174.


	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	—	235,129	-16.44	%	-20.24	%	235,129
Washington	26,009	78,463	1.29	%	-3.83	%	104,472
New York	50,610	45,643	-7.56	%	-4.68	%	96,253
San Francisco	—	433,832	8.04	%	14.98	%	433,832
Princeton	—	165,683	-9.37	%	-9.21	%	165,683

	76,619	958,750	-3.99	%	-2.83	%	1,035,369

Boston Properties, Inc.

Second Quarter 2005

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q2 2005		Q1 2005		2004		2003		2002
Recurring capital expenditures	$	6,195	$	1,461	$	25,101	$	18,514	$	16,674
Planned non-recurring capital expenditures associated with acquisition properties		237		962		4,889		4,464		31,908
Hotel improvements, equipment upgrades and replacements		182		516		1,001		2,345		3,218

	$	6,614	$	2,939	$	30,991	$	25,323	$	51,800


*2nd Generation Tenant Improvements and Leasing Commissions*

	Q2 2005		Q1 2005		2004		2003		2002
Office
Square feet		958,750		399,125		3,356,267		2,635,914		2,122,409

Tenant improvement and lease commissions PSF	$	30.26	$	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	$	30.26	$	11.85	$	24.17	$	13.93	$	16.01

Boston Properties, Inc.

Second Quarter 2005

ACQUISITIONS/DISPOSITIONS

as of June 30, 2005

ACQUISITIONS

For the period from January 1, 2005 through June 30, 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 June 30, 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
Old Federal Reserve				Apr-05		149,592		46,800,000		10,140,000
100 East Pratt Street				May-05		639,149		207,500,000		54,379,000
Riverfront Plaza				May-05		909,998		247,050,000		68,544,000

Total Dispositions						1,698,739	$	556,630,000	$	134,508,000

(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.

Second Quarter 2005

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of June 30, 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 June 30, 2005		Estimated Future Equity Requirement		Percentage Leased (2)
Seven Cambridge Center and West Garage	Q1 2006	Q1 2006	Cambridge, MA	1	231,028		57,956,454		145,933,861		125,000,000		44,715,613		7,693,020	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,000		18,482,137		45,754,416		—		—		27,272,279	100	%
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		20,974,997		69,100,000		47,225,000		2,422,869		3,322,872	46	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		13,422,567		31,625,638		28,668,000		10,236,194		—	N/A

Total Development Properties				2	731,585	$	110,836,155	$	292,413,915	$	200,893,000	$	38,288,171	$	38,288,171	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 June 30, 2005		Estimated Future Equity Requirement		Percentage Leased
901 New York Avenue (25% ownership)	Q3 2004	Q2 2005	Washington, D.C.	1	539,038		42,536,292		44,777,000		42,500,000		42,500,000		2,240,708	96	%

Total Developments Placed in Service				1	539,038		42,536,292		44,777,000		42,500,000		42,500,000		2,240,708	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 July 26, 2005.

Boston Properties, Inc.

Second Quarter 2005

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of June 30, 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

	355.7	6,815,500


*VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS* as of June 30, 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.

Second 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.

In addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after a specific and defined supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. The adjustment to exclude losses from early extinguishments of debt results when the sale of real estate encumbered by debt requires us 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, we view the losses from early extinguishments of debt associated with the sales of real estate as an incremental cost of the sale transactions because we extinguished the debt in connection with the consummation of the sale transactions and we had no intent to extinguish the debt absent such transactions. We believe that this supplemental adjustment more appropriately reflects the results of our operations exclusive of the impact of our sale transactions.

Although our FFO as adjusted clearly differs from NAREIT’s definition of FFO, and may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance because we believe that, by excluding the effects of the losses from early extinguishments of debt associated with the sales of real estate, management and investors are presented with an indicator of our operating performance that more closely achieves the objectives of the real estate industry in presenting FFO.

Neither FFO nor FFO as adjusted should be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. Neither FFO nor FFO as adjusted represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Funds Available for Distribution (FAD)

In addition to FFO, we present Funds Available for Distribution (FAD) by (1) adding to FFO non-real estate depreciation, (2) eliminating the effect of straight-line rent, and (3) subtracting: recurring capital expenditures; hotel improvements, equipment upgrades and replacements; and second generation tenant improvement and leasing commissions. In addition, this calculation includes all non-cash compensation expense related to restricted securities. Although our FAD may not be comparable to that of other REITs and 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. 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 available to common shareholders, 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 20-22 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 SECOND QUARTER 2005 RESULTS

AND DECLARES A SPECIAL DIVIDEND

BOSTON, MA, July 26, 2005 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the second quarter ended June 30, 2005.

Funds from Operations (FFO) for the quarter ended June 30, 2005 were $121.3 million, or $1.10 per share basic and $1.06 per share diluted, after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. This compares to FFO for the quarter ended June 30, 2004 of $116.9 million, or $1.09 per share basic and $1.05 per share diluted. Losses from early extinguishments of debt associated with the sales of real estate totaled $0.09 per share basic and $0.08 per share diluted for the quarter ended June 30, 2005. The weighted average number of basic and diluted shares outstanding totaled 110,764,403 and 118,460,257, respectively, for the quarter ended June 30, 2005 and 107,215,662 and 115,207,736, respectively, for the same quarter last year.

Net income available to common shareholders was $166.6 million for the three months ended June 30, 2005, compared to $87.1 million for the quarter ended June 30, 2004. Net income available to common shareholders per share (EPS) for the quarter ended June 30, 2005 was $1.47 basic and $1.44 on a diluted basis. This compares to EPS for the second quarter of 2004 of $0.81 basic and $0.79 on a diluted basis. EPS includes $0.98 and $0.20 on a diluted basis, related to gains on sales of real estate and discontinued operations for the quarters ended June 30, 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 June 30, 2005. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

In addition, the Company announced that its Board of Directors declared a special cash dividend of $2.50 per common share payable on October 31, 2005 to shareholders of record as of the close of business on September 30, 2005. The Board of Directors did not make any change in the Company’s policy with respect to regular quarterly dividends. The holders of Series Two Preferred Units of limited partnership interest in the Company’s Operating Partnership will participate in the special dividend on an as-converted basis along with the holders of common units. The decision to declare a special dividend will be discussed in more detail during the Company’s conference call on July 27.

Edward H. Linde, President and Chief Executive Officer of Boston Properties, commented on the Board’s decision, by saying, “while the difficulty in purchasing significant high quality assets in accordance with our disciplined return and underwriting standards was one factor, also important was the exceptional strength of our current balance sheet which, even after this distribution, will allow us to aggressively pursue any attractive purchase or development opportunity that surfaces. Therefore, it is appropriate to return undeployed funds to our shareholders. As always, we remain committed to our goal of maximizing total return to our shareholders.”

As of June 30, 2005, the Company’s portfolio consisted of 122 properties comprising approximately 41.2 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 117 properties in service as of June 30, 2005 was 93.2%.

Significant events of the second quarter include:

•

The Company increased its quarterly dividend payable to holders of the Company’s Common Stock from $0.65 per share to $0.68 per share. This represents a 4.6% increase.

•

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.

•

On May 12, 2005, the Company modified its mortgage loan collateralized by 601 and 651 Gateway Boulevard located in South San Francisco, California. The modified mortgage loan of $83.8 million matures on December 31, 2005 and continues to require monthly payments equal to the net cash flow from the property, which will be allocated first to interest based on a rate of 3.50% per annum with the remainder applied to principal through the end of the term, with a balloon payment due at maturity.

•

On May 12, 2005, the Company completed 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. Net cash proceeds were approximately $93.0 million after the repayment of mortgage indebtedness of approximately $84.0 million, a prepayment penalty of approximately $6.5 million and unfunded tenant obligations and other closing costs totaling approximately $24.0 million.

•

On May 16, 2005, the Company completed 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. Net proceeds were approximately $130.2 million after the repayment of mortgage indebtedness of approximately $104.0 million, a prepayment penalty of approximately $4.3 million and unfunded tenant obligations and other closing costs totaling approximately $8.6 million.

•

On May 19, 2005, the Company extended its $605.0 million unsecured revolving credit agreement for a term expiring on October 30, 2007 with a one-year extension option. The interest rate on borrowings has been reduced from a per annum variable rate of Eurodollar plus 0.70% to Eurodollar plus 0.65%, subject to adjustment in the event of a change in the unsecured debt ratings of the Company’s Operating Partnership.

•

On June 21, 2005, the Company refinanced its construction loan facility collateralized by Times Square Tower located in New York City. The new mortgage loan totaling $475.0 million bears interest at a variable rate equal to LIBOR plus 0.50% per annum and matures on July 9, 2008. The new mortgage loan includes provisions for two one-year extensions at the option of the Company. The Company also entered into an agreement to cap the interest rate at 10.5% per annum.

Transactions completed subsequent to June 30, 2005:

•

On July 19, 2005, the Company refinanced at maturity its mortgage loan collateralized by 599 Lexington Avenue located in New York City. The mortgage loan totaling $225.0 million bore interest at a fixed rate of 7.0% per annum. The mortgage loan was refinanced through a secured draw from the Company’s revolving credit facility.

EPS and FFO per Share Guidance:

The Company’s guidance for the third quarter of 2005 and the full year 2005 for EPS (diluted), FFO per share (diluted) and FFO per share (diluted) after a supplemental adjustment is set forth and reconciled below.


	Third Quarter 2005					Full Year 2005
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	0.57	-	$	0.59	$	3.04	-	$	3.11
Add:
Projected Company Share of Real Estate Depreciation and Amortization		0.45	-		0.45		1.89	-		1.89

Less:
Projected Company Share of Gains on Sales of Real Estate		—	-		—		0.86	-		0.86

Projected FFO per Share (diluted)	$	1.02	-	$	1.04	$	4.07	-	$	4.14

Add:
Projected Company Share of Losses from Early Extinguishments of Debt Associated with the Sales of Real Estate		—	-		—		0.08	-		0.08

Projected FFO per Share (diluted) after a supplemental adjustment to exclude Losses from Early Extinguishments of Debt Associated with the Sales of Real Estate	$	1.02	-	$	1.04	$	4.15	-	$	4.22

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 after 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, July 27, 2005 at 10:00 AM (Eastern Time), open to the general public, to discuss the second 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 August 3, 2005 by dialing (800) 405-2236 and entering the passcode 11033290. 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’ second 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 third quarter and full fiscal year 2005.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended June 30,						Six months ended June 30,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	277,360		$	263,559		$	556,109		$	517,291
Recoveries from tenants		41,856			39,261			85,196			79,842
Parking and other		14,248			14,083			28,173			27,271

Total rental revenue		333,464			316,903			669,478			624,404
Hotel revenue		20,066			19,166			34,068			32,344
Development and management services		4,137			5,961			8,673			9,283
Interest and other		2,937			1,090			4,574			8,618

Total revenue		360,604			343,120			716,793			674,649

Expenses
Operating:
Rental		106,576			101,049			215,177			201,171
Hotel		13,979			13,376			26,265			25,054
General and administrative		14,252			12,493			29,065			25,093
Interest		78,233			74,789			157,587			149,094
Depreciation and amortization		65,850			60,366			133,833			116,373
Losses from early extinguishments of debt		12,896			—			12,896			6,258

Total expenses		291,786			262,073			574,823			523,043

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		68,818			81,047			141,970			151,606
Minority interests in property partnerships		1,472			1,292			3,124			1,677
Income from unconsolidated joint ventures		847			879			2,182			2,256

Income before minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		71,137			83,218			147,276			155,539
Minority interest in Operating Partnership		(14,965	)		(17,776	)		(30,671	)		(34,945	)

Income before gains on sales of real estate and land held for development and discontinued operations		56,172			65,442			116,605			120,594
Gains on sales of real estate, net of minority interest		102,073			1,377			102,073			8,108
Gains on sales of land held for development, net of minority interest		—			—			1,208			—

Income before discontinued operations		158,245			66,819			219,886			128,702
Discontinued operations:
Income (loss) from discontinued operations, net of minority interest		—			710			(406	)		2,349
Gains on sales of real estate from discontinued operations, net of minority interest		8,389			19,589			8,389			22,010

Net income available to common shareholders	$	166,634		$	87,118		$	227,869		$	153,061

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	1.39		$	0.62		$	1.96		$	1.23
Discontinued operations, net of minority interest		0.08			0.19			0.07			0.23

Net income available to common shareholders	$	1.47		$	0.81		$	2.03		$	1.46

Weighted average number of common shares outstanding		110,764			107,216			110,477			104,053

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	1.37		$	0.60		$	1.92		$	1.20
Discontinued operations, net of minority interest		0.07			0.19			0.07			0.23

Net income available to common shareholders	$	1.44		$	0.79		$	1.99		$	1.43

Weighted average number of common and common equivalent shares outstanding		113,103			109,016			112,740			106,255

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	June 30, 2005			December 31, 2004
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	8,736,776		$	9,033,858
Development in progress		99,727			35,063
Land held for future development		239,314			222,306
Less: accumulated depreciation		(1,189,101	)		(1,143,369	)

Total real estate		7,886,716			8,147,858

Cash and cash equivalents		507,182			239,344
Cash held in escrows		29,077			24,755
Investments in marketable securities		25,000			—
Tenant and other receivables, net of allowance for doubtful accounts of $2,698 and $2,879, respectively		28,230			25,500
Accrued rental income, net of allowance of $4,838 and $4,252, respectively		280,257			251,236
Deferred charges, net		243,679			254,950
Prepaid expenses and other assets		43,042			38,630
Investments in unconsolidated joint ventures		82,810			80,955

Total assets	$	9,125,993		$	9,063,228

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,427,892		$	3,541,131
Unsecured senior notes, net of discount		1,470,865			1,470,683
Unsecured line of credit		—			—
Accounts payable and accrued expenses		92,649			94,451
Dividends and distributions payable		95,597			91,428
Interest rate contract		—			1,164
Accrued interest payable		47,744			50,670
Other liabilities		132,427			91,300

Total liabilities		5,267,174			5,340,827

Commitments and contingencies		—			—

Minority interests		795,990			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, 111,482,273 and 110,399,385 shares issued and 111,403,373 and 110,320,485 shares outstanding in 2005 and 2004, respectively		1,114			1,103
Additional paid-in capital		2,679,448			2,633,980
Earnings in excess of dividends		405,780			325,452
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(5,503	)		(6,103	)
Accumulated other comprehensive loss		(15,288	)		(15,637	)

Total stockholders’ equity		3,062,829			2,936,073

Total liabilities and stockholders’ equity	$	9,125,993		$	9,063,228

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended June 30,						Six months ended June 30,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	166,634		$	87,118		$	227,869		$	153,061

Add:
Minority interest in Operating Partnership		14,965			17,776			30,671			34,945
Less:
Minority interests in property partnerships		1,472			1,292			3,124			1,677
Income from unconsolidated joint ventures		847			879			2,182			2,256
Gains on sales of real estate, net of minority interest		102,073			1,377			102,073			8,108
Gains on sales of land held for development, net of minority interest		—			—			1,208			—
Income (loss) from discontinued operations, net of minority interest		—			710			(406	)		2,349
Gains on sales of real estate from discontinued operations, net of minority interest		8,389			19,589			8,389			22,010

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		68,818			81,047			141,970			151,606

Add:
Real estate depreciation and amortization (2)		67,878			61,919			137,418			119,792
Income (loss) from discontinued operations		—			910			(486	)		2,957
Income from unconsolidated joint ventures		847			879			2,182			2,256
Less:
Minority interests in property partnerships’ share of funds from operations		(106	)		(158	)		(31	)		(1,062	)
Preferred distributions		(3,340	)		(3,813	)		(6,620	)		(8,198	)

Funds from operations (FFO)		134,097			140,784			274,433			267,351

Add:
Losses from early extinguishments of debt associated with the sales of real estate		11,041			—			11,041			—

Funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	145,138		$	140,784		$	285,474		$	267,351
Less:
Minority interest in the Operating Partnership’s share of funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		23,829			23,880			46,864			46,655

Funds from operations available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	121,309		$	116,904		$	238,610		$	220,696

Our percentage share of funds from operations - basic		83.58	%		83.04	%		83.58	%		82.55	%

Weighted average shares outstanding - basic		110,764			107,216			110,477			104,053

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.10		$	1.09		$	2.16		$	2.12

FFO per share basic	$	1.01		$	1.09		$	2.08		$	2.12

Weighted average shares outstanding - diluted		118,460			115,208			118,098			112,895

FFO per share diluted after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.06		$	1.05		$	2.09		$	2.04

FFO per share diluted	$	0.98		$	1.05		$	2.01		$	2.04

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $65,850, $60,366, $133,833 and $116,373, our share of unconsolidated joint venture real estate depreciation and amortization of $2,394, $1,683, $4,192 and $3,380 and depreciation and amortization from discontinued operations of $0, $487, $179 and $1,273, less corporate related depreciation and amortization of $366, $617, $786 and $1,234 for the three months and six months ended June 30, 2005 and 2004, respectively.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	June 30, 2005		December 31, 2004
Greater Boston	90.5	%	90.2	%
Greater Washington, D.C.	97.1	%	97.9	%
Midtown Manhattan	97.4	%	96.4	%
Baltimore, MD	N/A		90.9	%
Richmond, VA	N/A		91.3	%
Princeton/East Brunswick, NJ	88.4	%	90.2	%
Greater San Francisco	86.0	%	80.3	%

Total Portfolio	93.2	%	92.1	%


	% Leased by Type
	June 30, 2005		December 31, 2004
Class A Office Portfolio	93.4	%	92.3	%
Office/Technical Portfolio	97.6	%	97.6	%
Industrial Portfolio	0.0	%	0.0	%

Total Portfolio	93.2	%	92.1	%