SEC Filing

BOSTON PROPERTIES, INC.

Date: October 25, 2005

/s/ Douglas T. Linde

Douglas T. Linde

Chief Financial Officer

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FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): October 25, 2005

BOSTON PROPERTIES, INC.

(Exact name of registrant as specified in charter)

Delaware

1-13087

04-2473675

(State or Other Jurisdiction

of Incorporation)

(Commission File Number)

(IRS Employer

Identification No.)

111 Huntington Avenue, Suite 300, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02. Results of Operations and Financial Condition.

The information in this Current Report on Form 8-K is furnished under Item 2.02 - “Results of Operations and Financial Condition.” Such information, including the exhibits attached hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

On October 25, 2005, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the third 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 September 30, 2005.

*99.2		Press release dated October 25, 2005.

*	Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

EXHIBIT INDEX


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

*99.2		Press release dated October 25, 2005.

*	Filed herewith.

Boston Properties, Inc. Supplemental Operating and Financial Data

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2005

Boston Properties, Inc.

Third 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 (including the impact of interest rates on our hedging program), the effects of local economic and market conditions, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Boston Properties, Inc.

Third Quarter 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-four 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 September 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		123
Total Square Feet		42.0 million
Common Shares and Units Outstanding (as converted)		139.2 million
Dividend - Quarter/Annualized		$0.68/$2.72
Dividend Yield		3.84%
Special Dividend payable
October 31, 2005		$2.50 per common share/unit
Total Market Capitalization		$14.8 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Third Quarter 2005


INVESTOR INFORMATION
Board of Directors			Management

Mortimer B. Zuckerman Chairman of the Board	Carol B. Einiger Director	E. Mitchell Norville Executive Vice President for Operations	Peter D. Johnston 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	David A. Twardock
Director, Chairman of Nominating & Corporate Governance Committee	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):


	Q3 2005			Q2 2005			Q1 2005			Q4 2004			Q3 2004
High Price	$	76.25		$	70.00		$	63.65		$	64.85		$	56.29
Low Price	$	69.23		$	59.65		$	56.93		$	56.25		$	49.86
Average Closing Price	$	72.21		$	65.92		$	60.15		$	60.40		$	53.57
Closing Price, at the end of the quarter	$	70.90		$	70.00		$	60.23		$	64.67		$	55.39
Dividends per share - annualized (1)	$	2.72		$	2.72		$	2.60		$	2.60		$	2.60
Closing dividend yield - annualized		3.84	%		3.89	%		4.32	%		4.02	%		4.69	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		139,153			138,389			137,634		$	137,399			136,277
Closing market value of outstanding shares and units (thousands)	$	9,865,948		$	9,687,230		$	8,289,696		$	8,885,593		$	7,548,404

(1)

Reflects dividend increase from $0.65 per share to $0.68 per share - effective Q2 2005. Excludes special dividend of $2.50 per share payable on October 31, 2005.

Timing

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


Fourth Quarter		Late January 2006

Boston Properties, Inc.

Third Quarter 2005


RESEARCH COVERAGE
Equity Research Coverage			Debt Research Coverage

David Aubuchon	Anthony Paolone /Michael Mueller	Chris Brown	Rating Agencies:
A.G. Edwards & Sons	J.P. Morgan Securities	Banc of America Securities
314.955.5452	212.622.6682 / 212.622.6689	704.386.2524	Brendan Thorpe
			Fitch Ratings

Ross Nussbaum / John Kim	David Rodgers / Michael Salinsky	Susan Berliner	212.908.0538
Banc of America Securities	KeyBanc Capital Markets	Bear Stearns & Company
212.847.5668 / 212.847.5761	216.263.4785 / 216.563.2348	212.272.3824	Karen Nickerson
			Moody’s Investors Service
Ross Smotrich /Jeffrey Langbaum	John W. Guinee / Eli Fleminger	Thierry Perrein	212.553.4924
Bear Stearns & Company	Legg Mason	Credit Suisse First Boston
212.272.8046 / 212.272.4201	410.454.5520 / 410.454.4830	212.538.8618	James Fielding
			Standard & Poor’s
Jonathan Litt / Jordan Sadler	David Harris / David Toti	Scott O’Shea	212.438.2452
Citigroup Global Markets	Lehman Brothers	Deutsche Bank Securities
212.816.0231 / 212.816.0438	212.526.1790 / 212.526.2002	212.250.7190

Louis Taylor /Christoper Capolongo	Steve Sakwa / Brian Legg	Mark Streeter
Deutsche Bank Securities	Merill Lynch & Company	J.P. Morgan Securities
212.250.4912 / 212.250.7726	212.449.0335 / 212.449.1153	212.834.5086

Wilkes Graham / Saad Hashemy	Gregory Whyte / David Cohen	John Forrey
Friedman, Billings, Ramsey	Morgan Stanley & Company	Merrill Lynch & Company
703.312.9737 / 703.469.1218	212.761.6331 / 212.762.7145	212.449.1812

Carey Callaghan / Sloan Bohlen	James Sullivan /James Feldman	Thomas Cook
Goldman Sachs & Company	Prudential Equity Group	Citigroup Global Markets
212.902.4351 / 212.902.2796	212.778.2515 / 212.778.1724	212.723.1112

Jim Sullivan / Michael Knott	Jay Leupp / Brett Johnson
Green Street Advisors	RBC Capital Markets (US)
949.640.8780	415.633.8588 / 415.633.8566

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.

Third 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
	September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004
Income Items:

Revenue	$	361,786		$	360,475		$	356,187		$	362,518		$	359,137
Straight line rent (SFAS 13)	$	12,287		$	19,294		$	20,871		$	19,218		$	16,954
Fair value lease revenue (SFAS 141) (1)	$	294		$	295		$	292		$	245		$	241
Lease termination fees (included in revenue)	$	2,087		$	3,979		$	1,226		$	634		$	1,800
Capitalized interest	$	1,734		$	866		$	693		$	721		$	1,758
Capitalized wages	$	1,492		$	1,422		$	1,649		$	1,549		$	1,459
Operating Margins [(rental revenue - rental expense)/rental revenue] (2)		68.4	%		69.5	%		68.9	%		69.1	%		68.9	%
Net income available to common shareholders	$	57,551		$	165,490		$	61,242		$	62,254		$	68,542
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 (3) (4)	$	123,671		$	121,309		$	117,301		$	118,891		$	119,937
FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.07		$	1.06		$	1.03		$	1.05		$	1.07
Net income available to common shareholders per share - basic	$	0.51		$	1.46		$	0.56		$	0.57		$	0.63
Net income available to common shareholders per share -diluted	$	0.50		$	1.43		$	0.55		$	0.56		$	0.62
Dividends per common share (5)	$	3.18		$	0.68		$	0.65		$	0.65		$	0.65
Funds available for distribution to common shareholders and common unitholders (FAD) (4)	$	109,360		$	92,165		$	114,618		$	78,964		$	101,147

Ratios:

Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.88			2.54			2.59			2.64			2.74
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.81			2.51			2.57			2.62			2.68
FFO Payout Ratio (7)		63.55	%		64.15	%		63.11	%		61.90	%		60.75	%
FAD Payout Ratio (8)		82.25	%		98.15	%		75.01	%		109.43	%(9)		83.73	%

	September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004
Capitalization:
Total Debt	$	4,921,867		$	4,898,757		$	5,011,016		$	5,011,814		$	5,016,069
Price @ Quarter End	$	70.90		$	70.00		$	60.23		$	64.67		$	55.39
Equity Value @ Quarter End	$	9,865,948		$	9,687,230		$	8,289,696		$	8,885,593		$	7,548,404
Total Market Capitalization (10)	$	14,787,815		$	14,585,987		$	13,300,712		$	13,897,407		$	12,564,473
Debt/Total Market Capitalization (10)		33.28	%		33.59	%		37.67	%		36.06	%		39.92	%

(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)

Rental Expense includes operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $9,057, $6,992, $6,476, $6,541 and $8,312 for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively.

(3)

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. The supplemental adjustment is only applicable for the three months ended June 30, 2005.

(4)	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.

(5)	For the three months ended September 30, 2005, dividends per share include the $2.50 per common share special dividend payable October 31, 2005.

(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. For the three months ended September 30, 2005, excludes the $2.50 special dividend payable October 31, 2005.

(8)	Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders divided by FAD. For the three months ended September 30, 2005, excludes the $2.50 per share special dividend payable October 31, 2005.

(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.

Third Quarter 2005

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004
ASSETS
Real estate	$	8,792,127		$	8,736,776		$	9,024,693		$	9,033,858		$	9,053,584
Construction in progress		144,009			99,727			66,699			35,063			19,279
Land held for future development		244,783	(1)		239,314			234,010			222,306			221,901
Real estate held for sale		444			—			35,217			—			45
Less accumulated depreciation		(1,237,469	)		(1,190,465	)		(1,195,648	)		(1,143,369	)		(1,151,896	)

Total real estate		7,943,894			7,885,352			8,164,971			8,147,858			8,142,913
Cash and cash equivalents		450,577			507,182			209,307			239,344			213,873
Cash held in escrows		27,552			29,077			25,613			24,755			24,137
Investments in marketable securities		37,500			25,000			—			—			—
Tenant and other receivables, net		32,463			28,230			27,442			25,500			12,936
Accrued rental income, net		292,289			280,257			272,035			251,236			232,143
Deferred charges, net		239,443			243,674			255,695			254,950			240,834
Prepaid expenses and other assets		63,859			43,042			63,073			38,630			57,302
Investments in unconsolidated joint ventures		96,311			82,810			79,855			80,955			88,276

Total assets	$	9,183,888		$	9,124,624		$	9,097,991		$	9,063,228		$	9,012,414

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,450,904		$	3,427,892		$	3,540,242		$	3,541,131		$	3,545,477
Unsecured senior notes, net of discount		1,470,963			1,470,865			1,470,774			1,470,683			1,470,592
Unsecured line of credit		—	(2)		—			—			—			—
Accounts payable and accrued expenses		81,730			92,649			105,009			94,451			88,124
Dividends and distributions payable		443,437			95,597			91,259			91,428			90,942
Interest rate contracts		—			—			—			1,164			2,928
Accrued interest payable		39,443			47,744			41,987			50,670			41,007
Other liabilities		137,526	(1)		132,427			134,716			91,300			89,813

Total liabilities		5,624,003			5,267,174			5,383,987			5,340,827			5,328,883

Commitments and contingencies		—			—			—			—			—

Minority interests		725,077			795,767			782,532			786,328			790,758

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, 112,500,887, 111,403,373, 110,442,177, 110,320,485 and 108,986,697 outstanding, respectively		1,125			1,114			1,104			1,103			1,090
Additional paid-in capital		2,749,432			2,679,447			2,639,806			2,633,980			2,582,036
Earnings in excess of dividends		104,559			404,635			314,907			325,452			334,736
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(5,564	)		(5,503	)		(6,160	)		(6,103	)		(6,555	)
Accumulated other comprehensive loss		(12,022	)		(15,288	)		(15,463	)		(15,637	)		(15,812	)

Total stockholders’ equity		2,834,808			3,061,683			2,931,472			2,936,073			2,892,773

Total liabilities and stockholders’ equity	$	9,183,888		$	9,124,624		$	9,097,991		$	9,063,228		$	9,012,414

(1)

Includes approximately $44.4 million of land assets at September 30, 2005 related to the sale of a land parcel at the Prudential Center on February 23, 2005. Net proceeds received of approximately $49.0 million at September 30, 2005 is included in other liabilities. This transaction does not currently qualify as a sale for accounting purposes due to continuing involvement provisions.

(2)	On July 19, 2005, the Company refinanced its $225.0 million mortgage loan collateralized by 599 Lexington Avenue through a secured draw from the Unsecured Line of Credit. The line draw of $225.0 million is reflected within Mortgage Notes Payable.

Boston Properties, Inc.

Third Quarter 2005

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	30-Sep-05			30-Jun-05			31-Mar-05			31-Dec-04			30-Sep-04
Revenue:
Rental
Base Rent	$	274,522		$	277,358		$	278,747		$	276,209		$	273,603
Recoveries from tenants		43,969			41,856			43,340			41,555			43,381
Parking and other		13,470			14,121			13,925			14,353			15,645	(1)

Total rental revenue		331,961			333,335			336,012			332,117			332,629
Hotel revenues		20,139			20,066			14,002			24,230			19,768
Development and management services		4,923			4,137			4,536			5,330			5,832
Interest and other		4,763			2,937			1,637			841			908

Total revenue		361,786			360,475			356,187			362,518			359,137

Expenses:
Operating		66,387			63,379			63,695			62,327			65,950
Real estate taxes		44,725			43,076			44,789			44,287			42,804
Hotel operating		13,786			13,979			12,286			16,961			13,709
General and administrative		13,270			14,252			14,813			15,541			13,002
Interest (2)		75,700			78,233			79,354			79,378			77,698
Depreciation and amortization		65,905			67,214			67,983			68,529			65,480
Losses from early extinguishments of debt (3)		—			12,896			—			—			—

Total expenses		279,773			293,029			282,920			287,023			278,643

Income before minority interests and income from unconsolidated joint ventures		82,013			67,446			73,267			75,495			80,494
Minority interest in property partnerships		1,527			1,472			1,652			1,558			1,447
Income from unconsolidated joint ventures		1,117			847			1,335			664			460

Income before minority interest in Operating Partnership		84,657			69,765			76,254			77,717			82,401
Minority interest in Operating Partnership (4)		(27,032	)		(14,739	)		(15,718	)		(16,094	)		(17,178	)

Income before gains on sales of real estate and land held for development		57,625			55,026			60,536			61,623			65,223
Gains on sales of real estate, net of minority interest		—			102,073			—			—			—
Gains on sales of land held for development, net of minority interest		—			—			1,208			—			—

Income before discontinued operations		57,625			157,099			61,744			61,623			65,223
Income (loss) from discontinued operations, net of minority interest		(74	)		2			(502	)		(456	)		(831	)
Gains on sales of real estate from discontinued operations, net of minority interest		—			8,389			—			1,087			4,150

Net income available to common shareholders	$	57,551		$	165,490		$	61,242		$	62,254		$	68,542


INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	0.51		$	1.46		$	0.56		$	0.57		$	0.63

Net income available to common shareholders per share - diluted	$	0.50		$	1.43		$	0.55		$	0.56		$	0.62

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

(2)	Interest expense is reported net of capitalized interest of $1,734, $866, $693, $721 and $1,758 for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 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 16.20% 16.42%, 16.41%, 16.51% and 16.75% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively.

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

Boston Properties, Inc.

Third Quarter 2005

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	30-Sep-05			30-Jun-05		31-Mar-05			31-Dec-04			30-Sep-04
Net income available to common shareholders	$	57,551		$	165,490	$	61,242		$	62,254		$	68,542
Add:
Minority interest in Operating Partnership		27,032			14,739		15,718			16,094			17,178
Less:
Minority interest in property partnerships		1,527			1,472		1,652			1,558			1,447
Income from unconsolidated joint ventures		1,117			847		1,335			664			460
Gain on sales of real estate, net of minority interest		—			102,073		—			—			—
Gain on sales of land held for development, net of minority interest		—			—		1,208			—			—
Income (loss) from discontinued operations, net of minority interest		(74	)		2		(502	)		(456	)		(831	)
Gain on sales of real estate from discontinued operations, net of minority interest		—			8,389		—			1,087			4,150

Income before minority interests and income from unconsolidated joint ventures		82,013			67,446		73,267			75,495			80,494
Add:
Real estate depreciation and amortization (1)		67,702			69,247		69,540			69,989			67,538
Income (loss) from discontinued operations		(88	)		3		(601	)		(505	)		(945	)
Income from unconsolidated joint ventures		1,117			847		1,335			664			460
Less:
Minority property partnerships’ share of funds from operations		(32	)		106		(75	)		(123	)		(17	)
Preferred dividends and distributions		3,200	(2)		3,340		3,280			3,361			3,491

Funds from operations (FFO)		147,576			134,097		140,336			142,405			144,073
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		147,576			145,138		140,336			142,405			144,073
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		23,905			23,829		23,035			23,514			24,136

FFO available to common shareholders after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate (3)	$	123,671		$	121,309	$	117,301		$	118,891		$	119,937

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

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

Weighted average shares outstanding - basic		111,776			110,764		110,187			109,359			108,339

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

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

Weighted average shares outstanding - diluted		119,177			118,460		117,721			117,269			116,149

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	September 30, 2005				June 30, 2005			March 31, 2005			December 31, 2004			September 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	$	147,576		133,381	$	145,138	132,522	$	140,336	131,825	$	142,405	130,987	$	144,073	130,141
Effect of Dilutive Securities
Convertible Preferred Units		3,200	(2)	5,087		3,340	5,357		3,280	5,357		3,361	5,381		3,491	5,568
Stock Options and other		—		2,314		—	2,339		—	2,177		—	2,529		—	2,242

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	150,776		140,782	$	148,478	140,218	$	143,616	139,359	$	145,766	138,897	$	147,564	137,951

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		23,139		21,605		23,039	21,758		22,299	21,638		22,698	21,628		23,321	21,802

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 (4)	$	127,637		119,177	$	125,439	118,460	$	121,317	117,721	$	123,068	117,269	$	124,243	116,149

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

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

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $65,905, $67,214, $67,983, $68,529 and $65,480, our share of unconsolidated joint venture real estate depreciation and amortization of $2,188, $2,394, $1,798, $1,798 and $1,636 and depreciation and amortization from discontinued operations of $2, $5, $179, $206 and $1,080 less corporate related depreciation of $393, $366, $420, $544 and $658 for the three months ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively.

(2)	Excludes approximately $12.1 million of income allocated to the holders of Series Two Preferred Units to account for their right to participate on an as-converted basis in the special dividend to be funded using proceeds from previously completed sales of real estate.

(3)	Based on weighted average shares for the quarter. Company’s share for the quarter ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004 was 83.80%, 83.58%, 83.59%, 83.49% and 83.25%, respectively.

(4)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004 was 84.65%, 84.48%, 84.47%, 84.43% and 84.20%, respectively.

Boston Properties, Inc.

Third Quarter 2005

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			September 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)	$	147,576		$	145,138		$	140,336		$	142,405		$	144,073
2nd generation tenant improvements and leasing commissions		(19,582	)		(29,012	)		(4,730	)		(33,462	) (1)		(19,583	)
Straight-line rent		(12,287	)		(19,294	)		(20,871	)		(19,218	)		(16,954	)
Recurring capital expenditures		(5,637	)		(6,195	)		(1,461	)		(10,921	)		(6,831	)
Fair value interest adjustment		(818	)		(812	)		(798	)		(798	)		(793	)
Fair value lease revenue (SFAS 141)		(294	)		(295	)		(292	)		(245	)		(241	)
Hotel improvements, equipment upgrades and replacements		(1,539	)		(182	)		(516	)		(262	)		(238	)
Non real estate depreciation		393			366			420			544			658
Stock-based compensation		1,548			1,584			2,101			898			955
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		1,476			867			429			23			101

Funds available for distribution to common shareholder and common unitholders (FAD)	$	10,836		$	92,165		$	114,618		$	78,964		$	101,147

Interest Coverage Ratios

(in thousands, except for ratio amounts)


	Three Months Ended
	September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004			September 30, 2004
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	82,013		$	67,446		$	73,267		$	75,495		$	80,494
Interest expense		75,700			78,233			79,354			79,378			77,698
Depreciation and amortization expense		65,905			67,214			67,983			68,529			65,480
Depreciation from joint ventures		2,188			2,394			1,798			1,798			1,636
Income from unconsolidated joint ventures		1,117			847			1,335			664			460
Discontinued operations - depreciation expense		2			5			179			206			1,080
Discontinued operations		(88	)		3			(601	)		(505	)		(945	)
Straight-line rent		(12,287	)		(19,294	)		(20,871	)		(19,218	)		(16,954	)
Fair value lease revenue (SFAS 141)		(294	)		(295	)		(292	)		(245	)		(241	)

Subtotal		214,256			196,553			202,152			206,102			208,708

Divided by:
Interest expense (2)		74,514			77,410			77,988			78,051			76,242

Interest Coverage Ratio		2.88			2.54			2.59			2.64			2.74

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	82,013		$	67,446		$	73,267		$	75,495		$	80,494
Interest expense		75,700			78,233			79,354			79,378			77,698
Depreciation and amortization expense		65,905			67,214			67,983			68,529			65,480
Depreciation from joint ventures		2,188			2,394			1,798			1,798			1,636
Income from unconsolidated joint ventures		1,117			847			1,335			664			460
Discontinued operations - depreciation expense		2			5			179			206			1,080
Discontinued operations		(88	)		3			(601	)		(505	)		(945	)
Straight-line rent		(12,287	)		(19,294	)		(20,871	)		(19,218	)		(16,954	)
Fair value lease revenue (SFAS 141)		(294	)		(295	)		(292	)		(245	)		(241	)

Subtotal		214,256			196,553			202,152			206,102			208,708

Divided by:
Interest expense (2) (3)		76,248			78,276			78,681			78,772			78,000

Interest Coverage Ratio		2.81			2.51			2.57			2.62			2.68

(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 $1,186, $823, $1,366, $1,327 and $1,456 for the quarters ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively.

(3)	Includes capitalized interest of $1,734, $866, $693, $721 and $1,758 for the quarters ended September 30, 2005, June 30, 2005, March 31, 2005, December 31, 2004 and September 30, 2004, respectively.

Boston Properties, Inc.

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


	Three Months Ended
	30-Sep-05			30-Jun-05		31-Mar-05			31-Dec-04			30-Sep-04
Total Revenue (1)	$	19		$	199	$	5		$	170		$	933

Expenses:
Operating		105			191		427			469			798
Depreciation and amortization		2			5		179			206			1,080

Total Expenses		107			196		606			675			1,878

Income before minority interests		(88	)		3		(601	)		(505	)		(945	)

Minority interest in property partnership		—			—		—			41			53
Minority interest in Operating Partnership		(14	)		1		(99	)		(90	)		(167	)

Income (loss) from discontinued operations (net of minority interest)	$	(74	)	$	2	$	(502	)	$	(456	)	$	(831	)

Properties (2):		40-46 Harvard Street			40-46 Harvard Street		40-46 Harvard Street			40-46 Harvard Street			40-46 Harvard Street

					Old Federal Reserve		Old Federal Reserve			Old Federal Reserve			Old Federal Reserve

										560 Forbes Boulevard			560 Forbes Boulevard

													204 Second Avenue

													Sugarland Business Park - Building One

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

(2)	Discontinued operations does not include the operations of 100 East Pratt Street and Riverfront Plaza due to the Company’s continuing involvement in the management, for a fee, of these properties subsequent to the sales through agreements with the buyers.

Boston Properties, Inc.

Third Quarter 2005

CAPITAL STRUCTURE

Debt

(in thousands)


													Aggregate Principal September 30, 2005
Mortgage Notes Payable													$	3,450,904
Unsecured Line of Credit														—
Unsecured Senior Notes, net of discount														1,470,963

Total Debt													$	4,921,867


Boston Properties Limited Partnership Unsecured Senior Notes

													Total/Average
Settlement Date		5/22/03			3/18/03			1/17/03			12/13/02
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	$	1,428		$	259		$	342		$	2,008		$	4,037

Unsecured Senior Notes, net of discount	$	248,572		$	299,741		$	174,658		$	747,992		$	1,470,963


*Equity* *(in thousands)*

							Shares/Units Outstanding as of 9/30/05			Common Stock Equivalents			Equivalent (1)
Common Stock								112,501			112,501	(2)	$	7,976,321
Common Operating Partnership Units								21,795			21,795	(3)		1,545,266
Series Two Preferred Operating Partnership Units								3,701			4,857			344,361

Total Equity											139,153		$	9,865,948

Total Debt														4,921,867

Total Market Capitalization													$	14,787,815

(1)	Value based on September 30, 2005 closing price of $70.90 per share of common stock.

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

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

Boston Properties, Inc.

Third Quarter 2005

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2005			2006			2007			2008			2009			Thereafter			Total
Floating Rate Debt	$	—		$	8,463		$	298,630		$	475,000		$	—		$	—		$	782,093
Fixed Rate Debt		97,386			220,822			181,377			801,323			188,278			2,650,588			4,139,774

Total Debt	$	97,386		$	229,285		$	480,007		$	1,276,323		$	188,278		$	2,650,588		$	4,921,867

Weighted Average Floating Rate Debt		—			5.40	%		4.41	%		4.27	%		—			—			4.34	%
Weighted Average Fixed Rate Debt		3.97	%		7.30	%		6.61	%		6.84	%		7.11	%		6.58	%		6.63	%

Total Weighted Average Rate		3.97	%		7.23	%		5.24	%		5.88	%		7.11	%		6.58	%		6.27	%

Unsecured Debt

Unsecured Line of Credit - Matures October 30, 2007

(in thousands)


Facility	Outstanding @ 9/30/2005		Letters of Credit	Remaining Capacity @ 9/30/2005
$ 605,000	$—	(1)	$9,436	$370,564	(1)

(1)	$225 million drawn on the unsecured line of credit is secured by 599 Lexington Avenue and is included under Mortgage Notes Payable.

Unsecured and Secured Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Unsecured Debt	29.89	%	5.95	%	8.2 years
Secured Debt	70.11	%	6.40	%	3.9 years

Total Debt	100.00	%	6.27	%	5.2 years

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	15.89	%	4.34	%	2.5 years
Fixed Rate Debt	84.11	%	6.63	%	5.7 years

Total Debt	100.00	%	6.27	%	5.2 years

Boston Properties, Inc.

Third Quarter 2005

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2005			2006			2007			2008			2009			Thereafter			Total
Citigroup Center	$	1,708		$	7,145		$	7,676		$	8,246		$	8,858		$	466,148		$	499,781
Times Square Tower		—			—			—			475,000			—			—			475,000
Embarcadero Center One and Two		1,318			5,496			5,877			278,912			—			—			291,603
Prudential Center		1,272			5,256			5,619			259,706			—			—			271,853
280 Park Avenue		839			3,519			3,798			4,099			4,423			240,272			256,950
599 Lexington Avenue		—			—			225,000	(1)		—			—			—			225,000
Embarcadero Center Four		979			4,061			4,346			129,712			—			—			139,098
Embarcadero Center Three		641			2,671			132,726			—			—			—			136,038
Democracy Center		540			2,257			2,421			2,597			91,132			—			98,947
Embarcadero Center West Tower		422			90,416	(2)		—			—			—			—			90,838
601 and 651 Gateway Boulevard		84,999			—			—			—			—			—			84,999
One Freedom Square		484			2,005			2,122			2,245			2,375			71,266			80,497
Cambridge Center Seven		—			—			73,630			—			—			—			73,630
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		335			1,387			1,466			1,549			1,637			53,849			60,223
202, 206 & 214 Carnegie Center		185			780			845			916			994			56,306			60,026
Capital Gallery		393			59,114	(3)		—			—			—			—			59,507
1330 Connecticut Avenue		545			2,238			2,346			2,452			2,577			47,722			57,880
New Dominion Technology Park, Building One		—			1,284			1,379			1,481			1,594			50,964			56,702
Reservoir Place		359			1,484			1,572			1,666			48,592			—			53,673
504, 506 & 508 Carnegie Center		295			1,221			1,314			40,914			—			—			43,744
10 & 20 Burlington Mall Rd & 91 Hartwell		193			801			861			925			994			33,593			37,367
10 Cambridge Center		170			715			777			844			916			29,677			33,099
Sumner Square		143			599			645			694			747			25,495			28,323
1301 New York Avenue		364			1,531			1,651			1,781			21,628			—			26,955
Eight Cambridge Center		154			649			702			757			819			22,911			25,992
510 Carnegie Center		164			683			735			23,519			—			—			25,101
University Place		193			806			864			925			992			18,422			22,202
Reston Corporate Center		168			698			745			20,524			—			—			22,135
Bedford Business Park		193			818			890			16,859			—			—			18,760
191 Spring Street		177			18,267			—			—			—			—			18,444
Montvale Center		49			6,762			—			—			—			—			6,811
101 Carnegie Center		104			6,622			—			—			—			—			6,726

		97,386			229,285			480,007			1,276,323			188,278			1,179,625			3,450,904

Unsecured Senior Notes		—			—			—			—			—			1,470,963			1,470,963
Unsecured Line of Credit		—			—			—	(1)		—			—			—			—

	$	97,386		$	229,285		$	480,007		$	1,276,323		$	188,278		$	2,650,588		$	4,921,867

% of Total Debt		1.98	%		4.66	%		9.75	%		25.93	%		3.83	%		53.85	%		100.00	%
Balloon Payments	$	84,999		$	179,366		$	431,356		$	1,234,782		$	158,698		$	2,562,114		$	4,651,315
Scheduled Amortization	$	12,387		$	49,919		$	48,651		$	41,541		$	29,580		$	88,474		$	270,552

(1)	Amount refinanced through a secured draw on the Company’s revolving line of credit facility. The facility expires on October 30, 2007.

(2)	On October 4, 2005, the Company repaid the mortgage indebtedness collateralized by this property.

(3)

Amount includes construction financing for the expansion of the property of $8.5 million which matures in February 2008 and existing mortgage financing of $50.6 million which matures in August 2006. The Company has assumed it will repay both financings upon the maturity date of the existing financing in August 2006.

Boston Properties, Inc.

Third 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 September 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.


			September 30, 2005
Total Assets:
Capitalized Property Value			$	11,097,383
Cash and Cash Equivalents				450,577
Investments in marketable securities				37,500
Undeveloped Land, at Cost				200,922
Development in Process, at Cost (including Joint Venture %)				159,230

Total Assets			$	11,945,612

Unencumbered Assets			$	5,161,432

Secured Debt (Fixed and Variable) (1)			$	3,430,578
Joint Venture Debt				202,992
Contingent Liabilities & Letters of Credit				19,224
Unsecured Debt (2)				1,475,000

Total Outstanding Debt			$	5,127,794

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)			$	82,013
Add: Interest Expense (per Consolidated Income Statement)				75,700
Add: Depreciation and Amortization (per Consolidated Income Statement)				65,905
Add: Losses from early extinguishments of debt (per Consolidated Income Statement)				—

EBITDA				223,618
Add: Company share of unconsolidated joint venture EBITDA				6,266

Consolidated EBITDA			$	229,884

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)			$	75,700
Add: Company share of unconsolidated joint venture interest expense				3,272
Less: Amortization of financing costs				(1,186	)
Less: Interest expense funded by construction loan draws				—

Adjusted Interest Expense			$	77,786


Covenant Ratios and Related Data	Test		Actual
Total Outstanding Debt/Total Assets	Less than 60	%		42.9	%
Secured Debt/Total Assets	Less than 50	%		30.4	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x			2.96
Unencumbered Assets/ Unsecured Debt	Greater than 150	%		349.9	%

Unencumbered Consolidated EBITDA			$	95,350

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)				4.07

% of unencumbered Consoidated EBITDA to Consolidated EBITDA				41.5	%

# of unencumbered properties				67

(1)	Excludes Fair Value Adjustment of $21,670.

(2)	Excludes Debt Discount of $4,037.

Boston Properties, Inc.

Third Quarter 2005

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of September 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)	$	7,602		$	32,185		$	22,790		$	2,995		$	3,236		$	2,193		$	20,143		$	5,167		$	96,311

Mortgage/Construction loans payable (4)	$	46,295		$	67,742		$	20,180		$	42,500		$	—		$	12,025		$	—		$	14,250		$	202,992

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 September 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	$	5,305		$	6,621		$	3,546		$	6,565		$	29		$	—		$	—		$	1,906		$	23,972	(5)

EXPENSES
Operating		1,815			2,275			1,282			1,938			7			—			—			530			7,847

SUBTOTAL		3,490			4,346			2,264			4,627			22			—			—			1,376			16,125
Interest		1,789			2,736			715			2,232			—			—			—			694			8,166
Depreciation and amortization		1,266			1,209			1,075			1,560			—			—			—			663			5,773

NET INCOME	$	435		$	401		$	474		$	835		$	22		$	—		$	—		$	19		$	2,186

BXP’s share of net income	$	217		$	204		$	166		$	515	(6)	$	11		$	—		$	—		$	4		$	1,117
BXP’s share of depreciation & amortization		633			617			376			396			—			—			—			166			2,188

BXP’s share of Funds from Operations (FFO)	$	850		$	821		$	542		$	911		$	11		$	—		$	—		$	170		$	3,305

(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 as 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 $1.0 million for the three months ended September 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.

Third 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%)*	$	214		$	901		$	978		$	1,061		$	1,152		$	63,436		$	67,742
Market Square North (50%)*		238			1,001			1,080			1,167			1,260			41,549			46,295
901 New York Avenue (25%)*		—			—			—			554			635			41,311			42,500
265 Franklin Street (35%)*		—			—			20,180			—			—			—			20,180	(1)
Wisconsin Place (23.89%) (2) *		—			1,692			1,828			1,785			6,720			—			12,025	(2)

	$	452		$	3,594		$	24,066		$	4,567		$	9,767		$	146,296		$	188,742

Weighted Average Rate (2)		7.95	%		7.95	%		5.14	%		7.40	%		5.98	%		7.22	%		6.91	%

% of Total Debt		0.24	%		1.90	%		12.75	%		2.42	%		5.17	%		77.52	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	14.66	%	4.97	%	2.4 years
Fixed Rate Debt	85.34	%	7.25	%	6.3 years

Total Debt	100.00	%	6.91	%	5.8 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 $12.3 million (of which the Company’s share is $4.3 million).

(2)	Approximately $6.7 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.

Third 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)	$	5,167

Results of Operations

(unaudited and in thousands)

for the three months ended September 30, 2005


	Worldgate Plaza
REVENUE
Total revenue	$	1,906	(3)

EXPENSES
Operating		530

SUBTOTAL		1,376

Interest		694
Depreciation and amortization		663

NET INCOME	$	19

BXP’s share of net income	$	4
BXP’s share of depreciation & amortization		166

BXP’s share of Funds from Operations (FFO)	$	170

(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 September 30, 2005, the interest rate was 4.57%.

(3)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $76 and ($148), respectively for the three months ended September 30, 2005.

Boston Properties, Inc.

Third 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 September 30, 2005 ⁽¹⁾ ⁽²⁾


Geographic Area	Square Feet Office (3)		% of NOI Office (4)		Square Feet Office/ Technical		% of NOI Office/ Technical (4)		Square Feet Industrial		% of NOI Industrial (4)	Square Feet Total		Square Feet % of Total		% of NOI Hotel (4)		% of NOI Total (4)
Greater Boston	7,755,620	(5)	20.9	%	545,206		0.7	%	152,009		—	8,452,835		27.1	%	2.8	%	24.4	%
Greater Washington	7,279,732	(6)	16.8	%	858,583		1.4	%	—		—	8,138,315		26.1	%	—		18.2	%
Greater San Francisco	4,532,387		13.6	%	—		—		—		—	4,532,387		14.5	%	—		13.6	%
Midtown Manhattan	7,785,959		39.7	%	—		—		—		—	7,785,959		24.9	%	—		39.7	%
Princeton/East Brunswick, NJ	2,319,229		4.1	%	—		—		—		—	2,319,229		7.4	%	—		4.1	%

	29,672,927		95.1	%	1,403,789		2.1	%	152,009		—	31,228,725		100.0	%	2.8	%	100.0	%

% of Total	95.0	%			4.5	%			0.5	%		100.0	%

Percentage of Net Operating Income of In-Service Properties

by Location and Type of Property (2) (4)


Geographic Area	CBD		Suburban		Total
Greater Boston	17.3	%	7.1	%	24.4	%
Greater Washington	5.3	%	12.9	%	18.2	%
Greater San Francisco	12.3	%	1.2	%	13.5	%
Midtown Manhattan	39.8	%	—		39.8	%
Princeton/East Brunswick, NJ	—		4.1	%	4.1	%

Total	74.7	%	25.3	%	100.0	%

Hotel Properties


	Number of Rooms	Square Feet
Hotel Properties
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	28,602	8,744,605

(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)	The calculation for percentage of Net Operating Income excludes termination income.

(5)	Includes 344,587 square feet at 265 Franklin Street which is 35% owned by Boston Properties.

(6)	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.

Boston Properties, Inc.

Third Quarter 2005

In-Service Property Listing

as of September 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	1,182,548	97.3	%	$	38.14	Y	CBD
111 Huntington Avenue-The Prudential Center	CBD Boston MA	1	853,686	99.0	%		49.41	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,939	89.0	%		33.63	Y	CBD
The Shops at the Prudential Center	CBD Boston MA	1	518,940	90.1	%		62.12	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	344,587	85.6	%		50.25	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	68.8	%		36.07	N	CBD
Three Cambridge Center	East Cambridge MA	1	108,152	84.6	%		27.37	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	100.0	%		42.39	N	CBD
University Place	Mid-Cambridge MA	1	196,007	99.6	%		35.79	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	527,943	73.7	%		28.26	Y	S
Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	63.7	%		25.26	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	85.7	%		25.20	N	S
195 West Street	Route 128 Mass Turnpike MA	1	63,500	100.0	%		46.65	N	S
200 West Street	Route 128 Mass Turnpike MA	1	248,048	100.0	%		35.62	N	S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	93.8	%		31.24	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	88.4	%		20.23	Y	S
Bedford Business Park	Route 128 Northwest MA	1	90,000	16.3	%		19.54	Y	S
32 Hartwell Avenue	Route 128 Northwest MA	1	69,154	100.0	%		29.45	N	S
91 Hartwell Avenue	Route 128 Northwest MA	1	121,424	100.0	%		31.22	Y	S
92 Hayden Avenue	Route 128 Northwest MA	1	31,100	100.0	%		51.54	N	S
100 Hayden Avenue	Route 128 Northwest MA	1	55,924	100.0	%		20.29	N	S
33 Hayden Avenue	Route 128 Northwest MA	1	80,128	100.0	%		28.07	N	S
Lexington Office Park	Route 128 Northwest MA	2	164,565	96.9	%		22.97	N	S
191 Spring Street	Route 128 Northwest MA	1	162,700	100.0	%		27.69	Y	S
181 Spring Street	Route 128 Northwest MA	1	53,595	59.0	%		30.96	N	S
201 Spring Street	Route 128 Northwest MA	1	102,500	100.0	%		35.29	N	S
40 Shattuck Road	Route 128 Northwest MA	1	120,000	95.6	%		26.51	N	S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		21.69	N	S
Newport Office Park	Route 128 South MA	1	170,013	100.0	%		22.15	N	S

		40	7,755,620	92.1	%	$	36.71

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	%		16.01	Y	S
17 Hartwell Avenue	Route 128 Northwest MA	1	30,000	100.0	%		14.00	N	S
164 Lexington Road	Route 128 Northwest MA	1	64,140	100.0	%		11.32	N	S

		5	545,206	100.0	%	$	16.09

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

Total Greater Boston:		46	8,452,835	91.0	%	$	35.25

Boston Properties, Inc.

Third Quarter 2005

In-Service Property Listing (continued)

as of September 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	%	$	39.82	Y	CBD
	500 E Street, S. W.	Southwest Washington DC	1	246,057	100.0	%		34.61	N	CBD
	Metropolitan Square (51% ownership)	East End Washington DC	1	586,482	98.0	%		42.04	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	98.4	%		49.23	Y	CBD
(2)	901 New York Avenue (25% ownership)	CBD Washington DC	1	539,215	96.3	%		43.78	Y	CBD
	1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		42.11	N	CBD
	1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		48.75	Y	CBD
	Sumner Square	CBD Washington DC	1	207,620	100.0	%		38.16	Y	CBD
	Democracy Center	Montgomery County MD	3	682,827	85.0	%		32.49	Y	S
	Montvale Center	Montgomery County MD	1	120,971	77.2	%		25.79	Y	S
	2600 Tower Oaks Boulevard	Montgomery County MD	1	178,887	100.0	%		36.41	N	S
	Orbital Sciences 1,2&3	Loudoun County	3	337,228	100.0	%		25.07	N	S
	One Freedom Square	Fairfax County VA	1	414,075	99.2	%		33.24	Y	S
	Two Freedom Square	Fairfax County VA	1	421,676	100.0	%		36.96	N	S
	One Reston Overlook	Fairfax County VA	1	312,685	100.0	%		25.25	N	S
	Two Reston Overlook	Fairfax County VA	1	133,207	100.0	%		29.45	N	S
	One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		37.10	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	7,279,732	97.6	%	$	36.41

Office/Technical
	Broad Run Business Park	Loudoun County	1	128,646	73.7	%		20.38	N	S
	7435 Boston Boulevard	Fairfax County VA	1	103,557	100.0	%		18.26	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	%		20.52	N	S
	7374 Boston Boulevard	Fairfax County VA	1	57,321	100.0	%		15.31	N	S
	8000 Grainger Court	Fairfax County VA	1	88,775	100.0	%		16.38	N	S
	7500 Boston Boulevard	Fairfax County VA	1	79,971	100.0	%		14.92	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	%		19.42	N	S
	8000 Corporate Court	Fairfax County VA	1	52,539	100.0	%		15.81	N	S
	7300 Boston Boulevard	Fairfax County VA	1	32,000	100.0	%		24.00	N	S

			12	858,583	96.1	%	$	18.17

		Total Greater Washington:	41	8,138,315	97.5	%	$	34.51

Boston Properties, Inc.

Third Quarter 2005

In-Service Property Listing (continued)

as of September 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	1,016,218	100.0	%	$	66.81	Y (3)	CBD
	280 Park Avenue	Park Avenue NY	1	1,176,708	99.7	%		59.44	Y	CBD
	Citigroup Center	Park Avenue NY	1	1,569,022	95.1	%		63.50	Y	CBD
	399 Park Avenue	Park Avenue NY	1	1,683,524	100.0	%		73.20	N	CBD
(2)	Times Square Tower	Times Square NY	1	1,238,708	91.4	%		59.35	Y	CBD
	5 Times Square	Times Square NY	1	1,101,779	100.0	%		53.91	N	CBD

		Total Midtown Manhattan:	6	7,785,959	97.6	%	$	63.46

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	51.5	%		31.27	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	%		30.50	N	S
	211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		27.08	N	S
	212 Carnegie Center	Princeton NJ	1	149,398	98.5	%		33.14	N	S
	214 Carnegie Center	Princeton NJ	1	150,774	80.4	%		30.50	Y	S
	302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		33.37	N	S
	502 Carnegie Center	Princeton NJ	1	116,374	93.8	%		33.64	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	%		33.95	Y	S
	508 Carnegie Center	Princeton NJ	1	131,085	100.0	%		28.97	Y	S
	510 Carnegie Center	Princeton NJ	1	234,160	100.0	%		29.35	Y	S
	One Tower Center	East Brunswick NJ	1	412,222	71.1	%		35.95	N	S

		Total Princeton/East Brunswick, NJ:	16	2,319,229	86.7	%	$	31.18

Greater San Francisco
Office
	Embarcadero Center One	CBD San Francisco CA	1	824,700	89.5	%	$	42.16	Y	CBD
	Embarcadero Center Two	CBD San Francisco CA	1	769,949	84.1	%		44.99	Y	CBD
	Embarcadero Center Three	CBD San Francisco CA	1	765,040	83.7	%		38.10	Y	CBD
	Embarcadero Center Four	CBD San Francisco CA	1	935,461	95.5	%		60.90	Y	CBD
	West Tower	CBD San Francisco CA	1	474,523	85.1	%		41.19	Y	CBD
	611 Gateway	South San Francisco CA	1	256,302	100.0	%		28.52	N	S
	601 and 651 Gateway	South San Francisco CA	2	506,412	62.0	%		29.97	Y	S

		Total Greater San Francisco:	8	4,532,387	85.9	%	$	44.28

		Total In-Service Properties:	117	31,228,725	93.3	%	$	43.33

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

(2)	Not included in same property analysis.

(3)	The mortgage loan secured by 599 Lexington Avenue was refinanced through a secured draw on the Company’s revolving line of credit facility which facility expires on October 30, 2007.

Boston Properties, Inc.

Third Quarter 2005

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED


	Tenant	Sq. Ft.		% of Portfolio
1	US Government	1,676,747	(1)	5.37	%
2	Citibank NA	1,218,336		3.90	%
3	Ernst & Young	1,064,939		3.41	%
4	Shearman & Sterling	585,808		1.88	%
5	Lockheed Martin	568,297		1.82	%
6	Procter & Gamble	484,051		1.55	%
7	Lehman Brothers	436,723		1.40	%
8	Parametric Technology	380,987		1.22	%
9	Genentech	374,171		1.20	%
10	Washington Group International	365,245		1.17	%
11	Kirkland & Ellis	364,759	(2)	1.17	%
12	Finnegan Henderson Farabow	349,146	(3)	1.12	%
13	Deutsche Bank Trust	344,886		1.10	%
14	O’Melveny & Myers	344,013		1.10	%
15	Orbital Sciences	337,228		1.08	%
16	Northrop Grumman	330,965		1.06	%
17	Ann Taylor	318,567		1.02	%
18	Bingham McCutchen	291,415		0.93	%
19	Akin Gump Strauss Hauer & Feld	290,132		0.93	%
20	Accenture	263,878		0.84	%

	Total % of Portfolio Square Feet			33.27	%
	Total % of Portfolio Revenue			36.85	%

*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		170,778
Lockheed Martin Corporation		12290 Sunrise Valley		182,000	(4)
Smithsonian Institute		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 162,169 square feet of space in a property in which Boston Properties has a 51% interest.

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

(4)	Property is currently in development.

TENANT DIVERSIFICATION (GROSS RENT) *

LOGO

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

Boston Properties, Inc.

Third Quarter 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	318,544		$	12,292,062		$	38.59		$	12,294,365		$	38.60		1.12	%
2006	1,443,886			62,992,881			43.63			62,958,988			43.60		5.09	%
2007	2,051,644			79,184,529			38.60			79,904,151			38.95		7.23	%
2008	1,637,747			69,227,936			42.27			70,697,868			43.17		5.77	%
2009	2,760,618			108,416,322			39.27			114,170,191			41.36		9.73	%
2010	1,923,432			85,864,188			44.64			91,691,299			47.67		6.78	%
2011	2,632,068			115,917,389			44.04			127,720,418			48.52		9.28	%
2012	2,501,957			117,753,604			47.06			126,854,765			50.70		8.82	%
2013	538,237			20,777,013			38.60			22,969,530			42.68		1.90	%
2014	1,879,019			67,882,836			36.13			74,431,995			39.61		6.62	%
Thereafter	8,996,422			429,265,706			47.72			517,515,261			57.52		31.71	%

Occupancy By Location*

	CBD					Suburban						Total
Location	30-Sep-05		30-Sep-04			30-Sep-05			30-Sep-04			30-Sep-05			30-Sep-04
Midtown Manhattan	97.6	%		95.5	%		n/a			n/a			97.6	%	95.5	%
Greater Boston	93.6	%		94.2	%		90.2	%		86.7	%		92.1	%	91.0	%
Greater Washington	98.8	%		99.9	%		96.9	%		96.5	%		97.6	%	97.8	%
Greater San Francisco	88.2	%		83.7	%		74.7	%		55.1	%		85.9	%	79.1	%
Princeton/East Brunswick, NJ	n/a			n/a			86.7	%		92.4	%		86.7	%	92.4	%
Richmond, VA	n/a			91.0	%		n/a			n/a			n/a		91.0	%
Baltimore, MD	n/a			95.0	%		n/a			n/a			n/a		95.0	%

Total Portfolio	95.0	%		93.3	%		91.0	%		89.6	%		93.5	%	92.0	%

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

Boston Properties, Inc.

Third 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	—		$	—		$	—		$	—		$	—		0.00	%
2006	300,512			4,336,417			14.43			4,356,529			14.50		21.41	%
2007	321,900			5,917,562			18.38			6,031,146			18.74		22.93	%
2008	70,440			1,340,935			19.04			1,439,312			20.43		5.02	%
2009	45,508			975,479			21.44			1,022,892			22.48		3.24	%
2010	132,510			2,023,433			15.27			2,110,145			15.92		9.44	%
2011	57,321			877,397			15.31			877,397			15.31		4.08	%
2012	72,362			1,648,945			22.79			1,815,509			25.09		5.15	%
2013	80,000			1,659,850			20.75			1,563,850			19.55		0.06
2014	274,821			4,899,590			17.83			5,638,541			20.52		19.58	%
Thereafter	—			—			—			—			—		—

*Occupancy By Location*

	CBD					Suburban						Total
Location	30-Sep-05		30-Sep-04			30-Sep-05			30-Sep-04			30-Sep-05			30-Sep-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	%		96.2	%		96.1	%	96.2	%
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	%		97.6	%		97.6	%	97.7	%

Boston Properties, Inc.

Third 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-Sep-05	30-Sep-04		30-Sep-05			30-Sep-04			30-Sep-05			30-Sep-04
Midtown Manhattan	n/a		n/a		n/a			n/a			n/a		n/a
Greater Boston	n/a		n/a		0.0	%		0.0	%		0.0	%	0.0	%
Greater Washington	n/a		n/a		n/a			n/a			n/a		n/a
Greater San Francisco	n/a		n/a		n/a			100.0	%		n/a		100.0	%
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	n/a		n/a		0.0	%		20.8	%		0.0	%	20.8	%

Boston Properties, Inc.

Third 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	14,066	$	1,438,582	$	102.27	(1)	$	1,499,278	$	106.59	(1)	1.11	%
2006	60,884		4,221,431		69.34			4,063,471		66.74		4.82	%
2007	33,607		2,062,743		61.38			2,111,512		62.83		2.66	%
2008	64,825		3,403,754		52.51			3,464,188		53.44		5.13	%
2009	67,028		3,273,970		48.84			3,380,989		50.44		5.31	%
2010	102,941		3,600,272		34.97			3,930,144		38.18		8.15	%
2011	57,300		3,492,637		60.95			3,922,995		68.46		4.54	%
2012	101,697		5,040,267		49.56			5,526,732		54.35		8.05	%
2013	61,386		5,374,651		87.55			5,926,634		96.55		4.86	%
2014	63,915		4,576,065		71.60			5,267,369		82.41		5.06	%
Thereafter	635,078		34,551,338		54.40			41,975,208		66.09		50.29	%

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $45.76 and $45.76 in 2005.

Boston Properties, Inc.

Third 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	332,610		$	13,730,644		$	41.28		$	13,793,642		$	41.47		1.1	%
2006	1,805,282			71,550,730			39.63			71,378,988			39.54		5.8	%
2007	2,407,151			87,164,834			36.21			88,046,809			36.58		7.7	%
2008	1,773,012			73,972,625			41.72			75,601,368			42.64		5.7	%
2009	2,873,154			112,665,771			39.21			118,574,072			41.27		9.2	%
2010	2,158,883			91,487,892			42.38			97,731,589			45.27		6.9	%
2011	2,746,689			120,287,424			43.79			132,520,810			48.25		8.8	%
2012	2,676,016			124,442,815			46.50			134,197,006			50.15		8.6	%
2013	679,623			27,811,514			40.92			30,460,014			44.82		2.2	%
2014	2,217,755			77,358,490			34.88			85,337,905			38.48		7.1	%
Thereafter	9,631,500			463,817,043			48.16			559,490,469			58.09		30.8	%

*Occupancy By Location*

	CBD					Suburban						Total
Location	30-Sep-05		30-Sep-04			30-Sep-05			30-Sep-04			30-Sep-05			30-Sep-04
Midtown Manhattan	97.6	%		95.5	%		n/a			n/a			97.6	%	95.5	%
Greater Boston	93.7	%		94.3	%		88.0	%		85.0	%		91.0	%	89.9	%
Greater Washington	98.8	%		99.9	%		96.7	%		96.5	%		97.5	%	97.6	%
Greater San Francisco	88.2	%		83.7	%		74.7	%		57.4	%		85.9	%	79.3	%
Princeton/East Brunswick, NJ	n/a			n/a			86.7	%		92.4	%		86.7	%	92.4	%
Richmond, VA	n/a			91.0	%		n/a			n/a			n/a		91.0	%
Baltimore, MD	n/a			95.0	%		n/a			n/a			n/a		95.0	%

Total Portfolio	95.0	%		93.3	%		90.6	%		89.4	%		93.3	%	91.8	%

Boston Properties, Inc.

Third 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	204,407	$	8,093,729	$	39.60	$	8,093,729	$	39.60	—	$	—	$	—	$	—	$	—
2006	417,999		13,711,905		32.80		13,589,565		32.51	253,704		3,515,158		13.86		3,515,158		13.86
2007	584,373		20,007,646		34.24		20,238,434		34.63	144,140		2,112,990		14.66		2,207,130		15.31
2008	602,167		18,517,345		30.75		18,750,874		31.14	—		—		—		—		—
2009	1,264,287		44,409,424		35.13		46,778,093		37.00	—		—		—		—		—
2010	390,470		12,064,484		30.90		12,812,936		32.81	—		—		—		—		—
2011	973,205		36,888,802		37.90		41,187,343		42.32	—		—		—		—		—
2012	671,145		24,538,612		36.56		26,302,111		39.19	72,362		1,648,945		22.79		1,815,509		25.09
2013	262,145		11,734,726		44.76		12,817,578		48.89	80,000		1,659,850		20.75		1,563,850		19.55
2014	480,548		16,391,654		34.11		17,700,066		36.83	—		—		—		—		—
Thereafter	600,893		19,832,835		33.01		25,335,163		42.16	—		—		—		—		—

	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	—	$	—	$	—	$	—	$	—	9,305	$	1,218,516	$	130.95	$	1,279,212	$	137.48	(1)
2006	—		—		—		—		—	28,068		2,616,128		93.21		2,454,128		87.44	(1)
2007	—		—		—		—		—	4,738		577,390		121.86		577,390		121.86
2008	—		—		—		—		—	5,467		573,226		104.85		555,226		101.56
2009	—		—		—		—		—	12,789		1,187,820		92.88		1,203,932		94.14
2010	—		—		—		—		—	41,531		787,101		18.95		787,101		18.95
2011	—		—		—		—		—	14,479		948,883		65.54		989,913		68.37
2012	—		—		—		—		—	52,949		2,051,894		38.75		2,096,098		39.59
2013	—		—		—		—		—	23,705		2,875,611		121.31		3,023,200		127.53
2014	—		—		—		—		—	19,902		2,075,218		104.27		2,234,762		112.29
Thereafter	—		—		—		—		—	430,988		19,712,685		45.74		22,207,668		51.53

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $47.33 and $47.33 in 2005 and $51.30 and $48.95 in 2006.

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2005	204,407		8,093,729		39.60		8,093,729		39.60	—		—		—		—		—

Total 2005	204,407	$	8,093,729	$	39.60	$	8,093,729	$	39.60	—		—		—		—		—

Q1 2006	13,116	$	278,649	$	21.24	$	278,649	$	21.24	—	$	—	$	—	$	—	$	—
Q2 2006	97,906		4,076,934		41.64		4,076,934		41.64	—		—		—		—		—
Q3 2006	177,737		5,214,382		29.34		5,214,382		29.34	253,704		3,515,158		13.86		3,515,158		13.86
Q4 2006	129,240		4,141,940		32.05		4,019,600		31.10	—		—		—		—		—

Total 2006	417,999	$	13,711,905	$	32.80	$	13,589,565	$	32.51	253,704		3,515,158		13.86		3,515,158		13.86


	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	—		—		—		—		—	9,305		1,218,516		130.95		1,279,212		137.48

Total 2005	—		—	$	—	$	—	$	—	9,305	$	1,218,516	$	130.95	$	1,279,212	$	137.48	(1)

Q1 2006	—	$	—	$	—		—	$	—	11,698	$	1,015,622	$	86.82	$	964,622	$	82.46
Q2 2006	—		—		—		—		—	5,597		952,497		170.18		853,497		152.49
Q3 2006	—		—		—		—		—	—		223,008		N/A		211,008		N/A
Q4 2006	—		—		—		—		—	10,769		425,001		39.47		425,001		39.47

Total 2006	—	$	—	$	—	$	—	$	—	28,068	$	2,616,128	$	93.21	$	2,454,128	$	87.44	(1)

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $47.33 and $47.33 in 2005 and $51.30 and $48.95 in 2006.

Boston Properties, Inc.

Third 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	76,729	$	2,765,097	$	36.04	$	2,767,400	$	36.07	—	$	—	$	—	$	—	$	—
2006	199,289		6,177,680		31.00		6,199,953		31.11	46,808		821,259		17.55		841,371		17.97
2007	371,514		12,940,477		34.83		13,085,409		35.22	177,760		3,804,572		21.40		3,824,016		21.51
2008	221,657		7,517,933		33.92		7,987,732		36.04	70,440		1,340,935		19.04		1,439,312		20.43
2009	868,211		34,144,682		39.33		36,070,119		41.55	45,508		975,479		21.44		1,022,892		22.48
2010	699,602		27,877,710		39.85		31,358,909		44.82	132,510		2,023,433		15.27		2,110,145		15.92
2011	734,010		24,909,785		33.94		28,316,352		38.58	57,321		877,397		15.31		877,397		15.31
2012	717,063		26,484,048		36.93		30,766,865		42.91	—		—		—		—		—
2013	59,801		1,677,562		28.05		2,001,579		33.47	—		—		—		—		—
2014	426,889		15,794,984		37.00		17,598,147		41.22	274,821		4,899,590		17.83		5,638,541		20.52
Thereafter	2,590,850		94,026,407		36.29		109,626,196		42.31	—		—		—		—		—

	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	—		—		—		—		—	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		727,815		30.90		789,146		33.50
2010	—		—		—		—		—	18,994		694,345		36.56		787,693		41.47
2011	—		—		—		—		—	11,221		479,297		42.71		534,623		47.64
2012	—		—		—		—		—	7,519		166,948		22.20		192,976		25.67
2013	—		—		—		—		—	13,377		610,377		45.63		727,884		54.41
2014	—		—		—		—		—	20,753		526,912		25.39		634,769		30.59
Thereafter	—		—		—		—		—	42,030		1,348,696		32.09		2,025,105		48.18

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2005	76,729		2,765,097		36.04		2,767,400		36.07	—		—		—		—		—

Total 2005	76,729	$	2,765,097	$	36.04	$	2,767,400	$	36.07	—	$	—	$	—	$	—	$	—

Q1 2006	39,225	$	1,293,000	$	32.96	$	1,294,519	$	33.00	—	$	—	$	—	$	—	$	—
Q2 2006	19,236		671,711		34.92		671,711		34.92	—		—		—		—		—
Q3 2006	124,021		3,798,594		30.63		3,804,507		30.68	33,400		579,671		17.36		579,671		17.36
Q4 2006	16,807		414,375		24.65		429,215		25.54	13,408		241,588		18.02		261,700		19.52

Total 2006	199,289	$	6,177,680	$	31.00	$	6,199,953	$	31.11	46,808	$	821,259	$	17.55	$	841,371	$	17.97


	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	—	$	—	$	—	$	—	$	—	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.

Third 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	26,727	$	1,059,776	$	39.65	$	1,059,776	$	39.65	—	$	—	$	—	$	—	$	—
2006	590,144		28,379,429		48.09		28,445,603		48.20	—		—		—		—		—
2007	415,593		19,648,084		47.28		19,768,679		47.57	—		—		—		—		—
2008	286,956		10,956,868		38.18		11,107,300		38.71	—		—		—		—		—
2009	181,134		8,889,355		49.08		9,060,174		50.02	—		—		—		—		—
2010	275,615		14,778,404		53.62		15,659,926		56.82	—		—		—		—		—
2011	216,297		18,881,755		87.30		19,082,929		88.23	—		—		—		—		—
2012	122,574		5,129,636		41.85		5,615,651		45.81	—		—		—		—		—
2013	113,211		4,090,602		36.13		4,542,141		40.12	—		—		—		—		—
2014	493,734		15,868,436		32.14		17,558,599		35.56	—		—		—		—		—
Thereafter	1,141,478		39,990,406		35.03		48,725,605		42.69	—		—		—		—		—

	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2005	—	$	—	$	—	$	—	$	—	4,350	$	164,375	$	37.79	$	164,375	$	37.79
2006	—		—		—		—		—	8,416		667,757		79.34		671,797		79.82
2007	—		—		—		—		—	16,259		1,104,284		67.92		1,142,026		70.24
2008	—		—		—		—		—	39,524		1,999,906		50.60		2,043,476		51.70
2009	—		—		—		—		—	30,685		1,358,334		44.27		1,387,911		45.23
2010	—		—		—		—		—	37,386		1,741,203		46.57		1,927,728		51.56
2011	—		—		—		—		—	15,125		551,768		36.48		648,039		42.85
2012	—		—		—		—		—	35,590		2,135,027		59.99		2,407,697		67.65
2013	—		—		—		—		—	8,408		579,823		68.96		627,686		74.65
2014	—		—		—		—		—	10,317		629,499		61.02		713,079		69.12
Thereafter	—		—		—		—		—	33,220		1,558,280		46.91		1,793,348		53.98

Boston Properties, Inc.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2005	26,727		1,059,776		39.65		1,059,776		39.65	—		—		—		—		—

Total 2005	26,727	$	1,059,776	$	39.65	$	1,059,776	$	39.65	—		—		—		—		—

Q1 2006	182,368	$	6,345,811	$	34.80	$	6,365,530	$	34.90	—	$	—	$	—	$	—	$	—
Q2 2006	92,889		7,323,642		78.84		7,323,642		78.84	—		—		—		—		—
Q3 2006	121,244		5,107,054		42.12		5,136,234		42.36	—		—		—		—		—
Q4 2006	193,643		9,602,922		49.59		9,620,197		49.68	—		—		—		—		—

Total 2006	590,144	$	28,379,429	$	48.09	$	28,445,603	$	48.20	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2005	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2005	—		—		—		—		—	—		—		—		—		—
Q3 2005	—		—		—		—		—	—		—		—		—		—
Q4 2005	—		—		—		—		—	4,350		164,375		37.79		164,375		37.79

Total 2005	—	$	—	$	—	$	—	$	—	4,350	$	164,375	$	37.79	$	164,375	$	37.79

Q1 2006	—	$	—	$	—	$	—	$	—	3,194	$	371,501	$	116.31	$	371,501		116.31
Q2 2006	—		—		—		—		—	987		60,039		60.83		60,039		60.83
Q3 2006	—		—		—		—		—	1,314		122,685		93.37		126,725		96.44
Q4 2006	—		—		—		—		—	2,921		113,533		38.87		113,533		38.87

Total 2006	—		—		—		—		—	8,416	$	667,757	$	79.34	$	671,797	$	79.82

Boston Properties, Inc.

Third 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	188,825		13,020,123		68.95		13,020,123		68.95	—		—		—		—		—
2007	155,097		10,105,815		65.16		10,126,168		65.29	—		—		—		—		—
2008	490,877		31,152,829		63.46		31,723,435		64.63	—		—		—		—		—
2009	179,967		12,147,284		67.50		12,964,707		72.04	—		—		—		—		—
2010	332,903		23,643,137		71.02		24,020,187		72.15	—		—		—		—		—
2011	430,510		26,158,983		60.76		29,562,310		68.67	—		—		—		—		—
2012	985,675		61,418,054		62.31		63,977,259		64.91	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	193,274		11,358,463		58.77		12,244,940		63.36	—		—		—		—		—
Thereafter	4,439,698		270,029,722		60.82		326,700,967		73.59	—		—		—		—		—

	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	—		—		—		—		—	13,044		536,662		41.14		536,662		41.14
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	—		—		—		—		—	16,475		1,512,690		91.82		1,750,419		106.25
2012	—		—		—		—		—	5,639		686,398		121.72		829,961		147.18
2013	—		—		—		—		—	15,896		1,308,840		82.34		1,547,864		97.37
2014	—		—		—		—		—	12,943		1,344,436		103.87		1,684,759		130.17
Thereafter	—		—		—		—		—	128,840		11,931,676		92.61		15,949,087		123.79

Boston Properties, Inc.

Third 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	21,395	$	1,706,139	$	79.74	$	1,706,139	$	79.74	—	$	—	$	—		—	$	—
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	30,100		1,996,452		66.33		1,996,452		66.33	—		—		—		—		—
Q4 2006	137,330		9,317,532		67.85		9,317,532		67.85	—		—		—		—		—


Total 2006	188,825	$	13,020,123	$	68.95	$	13,020,123	$	68.95	—	$	—	$	—	$	—	$	—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
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	—		—		—		—		—	12,694		510,809		40.24		510,809		40.24

Total 2006	—	$	—	$	—	$	—	$	—	13,044	$	536,662	$	41.14	$	536,662	$	41.14

Boston Properties, Inc.

Third 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	10,681	$	373,460	$	34.96	$	373,460	$	34.96	—	$	—	$	—	$	—	$	—
2006	47,629		1,703,744		35.77		1,703,744		35.77	—		—		—		—		—
2007	525,067		16,482,508		31.39		16,685,462		31.78	—		—		—		—		—
2008	36,090		1,082,961		30.01		1,128,527		31.27	—		—		—		—		—
2009	267,019		8,825,577		33.05		9,297,099		34.82	—		—		—		—		—
2010	224,842		7,500,452		33.36		7,839,341		34.87	—		—		—		—		—
2011	278,046		9,078,064		32.65		9,571,484		34.42	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	103,080		3,274,123		31.76		3,608,233		35.00	—		—		—		—		—
2014	284,574		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		5,386,336		24.10		7,127,330		31.89	—		—		—		—		—

	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.

Third 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	—		—		—		—		—	—		—		—		—		—
Q4 2005	10,681		373,460		34.96		373,460		34.96	—		—		—		—		—

Total 2005	10,681	$	373,460	$	34.96	$	373,460	$	34.96	—	$	—	$	—	$	—	$	—

Q1 2006	2,146	$	90,411	$	42.13	$	90,411	$	42.13	—	$	—	$	—	$	—	$	—
Q2 2006	28,238		1,038,006		36.76		1,038,006		36.76	—		—		—		—		—
Q3 2006	4,251		165,750		38.99		165,750		38.99	—		—		—		—		—
Q4 2006	12,994		409,578		31.52		409,578		31.52	—		—		—		—		—

Total 2006	47,629	$	1,703,744	$	35.77	$	1,703,744	$	35.77	—	$	—	$	—	$	—	$	—


	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.

Third 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	166,558	$	7,995,534	(1)	$	48.00	$	8,056,230	(1)	$	48.37	22,098	$	830,771	$	37.59	$	830,771	$	37.59
2006	179,699	$	8,534,761	(2)		47.49	$	8,543,027	(2)		47.54	21,152		785,422		37.13		790,610		37.38
2007	145,649	$	7,221,045			49.58	$	7,253,750			49.80	275,734		9,739,187		35.32		9,799,869		35.54
2008	192,913	$	7,070,093			36.65	$	7,140,193			37.01	40,973		1,730,436		42.23		1,818,969		44.39
2009	808,336	$	30,236,621			37.41	$	31,976,013			39.56	837,778		33,177,390		39.60		35,009,105		41.79
2010	176,617	$	6,051,299			34.26	$	6,357,951			36.00	454,465		19,281,889		42.43		21,361,289		47.00
2011	491,470	$	25,717,789			52.33	$	28,922,991			58.85	196,512		8,558,806		43.55		9,654,905		49.13
2012	321,986	$	14,470,430			44.94	$	15,414,262			47.87	86,086		3,671,342		42.65		3,692,908		42.90
2013	285,850	$	14,610,337			51.11	$	15,840,779			55.42	1,702		94,199		55.35		112,525		66.11
2014	449,687	$	17,213,244			38.28	$	18,506,981			41.16	63,796		3,062,416		48.00		3,802,176		59.60
Thereafter	854,510	$	36,164,735			42.32	$	42,580,200			49.83	989,054		44,874,881		45.37		55,739,124		56.36

	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	23,128	$	1,022,256	$	44.20	$	1,022,256	$	44.20
2006	201,869		13,556,784			67.16		13,556,784			67.16	561,991		26,665,987		47.45		26,727,926		47.56
2007	155,097		10,105,815			65.16		10,126,168			65.29	401,881		20,061,775		49.92		20,146,416		50.13
2008	492,559		31,217,677			63.38		31,792,061			64.54	284,728		11,919,345		41.86		12,077,320		42.42
2009	179,967		12,147,284			67.50		12,964,707			72.04	204,064		10,076,207		49.38		10,264,794		50.30
2010	337,933		24,020,760			71.08		24,447,810			72.35	301,969		16,245,281		53.80		17,273,207		57.20
2011	446,985		27,671,673			61.91		31,312,730			70.05	231,422		19,433,523		83.97		19,730,968		85.26
2012	991,314		62,104,452			62.65		64,807,220			65.38	152,424		7,144,123		46.87		7,887,600		51.75
2013	15,896		1,308,840			82.34		1,547,864			97.37	121,619		4,670,425		38.40		5,169,827		42.51
2014	206,217		12,702,899			61.60		13,929,699			67.55	247,749		9,186,954		37.08		9,822,717		39.65
Thereafter	4,568,538		281,961,398			61.72		342,650,054			75.00	880,409		33,635,447		38.20		40,198,904		45.66

	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 9,305 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $43.10 and rent on expiring leases with future step-up is $43.10 per square foot in 2005.

(2)	Includes 28,068 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $39.03 and rent on expiring leases with future step-up is $40.16 per square foot in 2006.

Boston Properties, Inc.

Third 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	47,154	$	1,316,711	$	27.92	$	1,316,711	$	27.92	51,406	$	1,815,593	$	35.32	$	1,815,593	$	35.32
2006	520,072		11,308,430		21.74		11,015,825		21.18	230,829		6,416,285		27.80		6,451,962		27.95
2007	587,602		15,476,981		26.34		15,769,205		26.84	286,150		7,386,930		25.81		7,501,651		26.22
2008	414,721		12,020,478		28.98		12,165,907		29.34	269,276		7,894,206		29.32		8,404,937		31.21
2009	468,740		15,360,624		32.77		16,006,012		34.15	85,807		2,136,915		24.90		2,294,570		26.74
2010	255,384		6,800,285		26.63		7,242,085		28.36	393,416		11,187,066		28.44		12,759,315		32.43
2011	496,214		12,119,897		24.42		13,254,266		26.71	606,040		17,707,672		29.22		20,073,467		33.12
2012	474,470		13,769,020		29.02		14,799,456		31.19	638,496		22,979,654		35.99		27,266,934		42.70
2013	80,000		1,659,850		20.75		1,563,850		19.55	71,476		2,193,740		30.69		2,616,938		36.61
2014	50,763		1,253,627		24.70		1,427,847		28.13	658,667		18,159,069		27.57		20,069,281		30.47
Thereafter	177,371		3,380,785		19.06		4,962,630		27.98	1,643,826		50,500,222		30.72		55,912,177		34.01

	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	—	$	—	$	—	$	—	$	—	7,949	$	201,895	$	25.40	$	201,895	$	25.40
2006	—		—		—		—		—	36,569		2,381,199		65.12		2,389,473		65.34
2007	—		—		—		—		—	29,971		690,594		23.04		764,289		25.50
2008	—		—		—		—		—	41,752		1,037,430		24.85		1,073,455		25.71
2009	—		—		—		—		—	7,755		171,482		22.11		183,291		23.64
2010	—		—		—		—		—	11,032		274,326		24.87		314,448		28.50
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	5,740		120,540		21.00		135,748		23.65
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	256,302		7,310,981		28.52		8,448,961		32.96
Thereafter	—		—		—		—		—	294,289		7,913,240		26.89		10,320,048		35.07

	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	10,681	$	373,460	$	34.96	$	373,460	$	34.96	—	$	—	$	—	$	—	$	—
2006	47,629		1,703,744		35.77		1,703,744		35.77	—		—		—		—		—
2007	525,067		16,482,508		31.39		16,685,462		31.78	—		—		—		—		—
2008	36,090		1,082,961		30.01		1,128,527		31.27	—		—		—		—		—
2009	267,019		8,825,577		33.05		9,297,099		34.82	—		—		—		—		—
2010	224,842		7,500,452		33.36		7,839,341		34.87	—		—		—		—		—
2011	278,046		9,078,064		32.65		9,571,484		34.42	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	103,080		3,274,123		31.76		3,608,233		35.00	—		—		—		—		—
2014	284,574		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
Thereafter	223,503		5,386,336		24.10		7,127,330		31.89	—		—		—		—		—

Boston Properties, Inc.

Third Quarter 2005

HOTEL PERFORMANCE


Long Wharf Marriott - Boston

	Third Quarter 2005			Third Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		90.1	%		91.2	%	-1.2	%		82.9	%		85.6	%	-3.2	%
Average Daily Rate	$	232.50		$	227.06		2.4	%	$	213.64		$	203.09		5.2	%
Revenue per available room	$	209.56		$	207.16		1.2	%	$	177.01		$	173.93		1.8	%

Cambridge Center Marriott

	Third Quarter 2005			Third Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		81.6	%		86.4	%	-5.6	%		75.3	%		79.1	%	-4.8	%
Average Daily Rate	$	166.34		$	162.67		2.3	%	$	168.68		$	157.00		7.4	%
Revenue per available room	$	135.79		$	140.54		-3.4	%	$	127.07		$	124.22		2.3	%

Residence Inn by Marriott

	Third Quarter 2005			Third Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		89.6	%		93.1	%	-3.8	%		84.0	%		83.9	%	0.1	%
Average Daily Rate	$	152.16		$	148.15		2.7	%	$	142.33			133.88		6.3	%
Revenue per available room	$	136.28		$	137.93		-1.2	%	$	119.55			112.29		6.5	%

Total Hotel Performance

	Third Quarter 2005			Third Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		86.5	%		89.6	%	-3.5	%		80.0	%		82.6	%	-3.1	%
Average Daily Rate	$	188.60		$	184.18		2.4	%	$	180.30		$	169.73		6.2	%
Revenue per available room	$	164.03		$	165.40		-0.8	%	$	144.54		$	140.68		2.7	%

Boston Properties, Inc.

Third Quarter 2005

OCCUPANCY ANALYSIS


*Same Property Occupancy⁽¹⁾ - By Location*

	CBD				Suburban				Total
Location	30-Sep-05		30-Sep-04		30-Sep-05		30-Sep-04		30-Sep-05		30-Sep-04
Greater Boston	93.7	%	94.3	%	88.0	%	85.0	%	91.0	%	89.9	%
Greater Washington	99.2	%	99.9	%	96.5	%	96.3	%	97.4	%	97.4	%
Midtown Manhattan	98.8	%	98.3	%	—		—		98.8	%	98.3	%
Princeton/East Brunswick, NJ	—		—		86.7	%	92.4	%	86.7	%	92.4	%
Greater San Francisco	88.2	%	87.0	%	74.7	%	55.1	%	85.9	%	81.6	%

Total Portfolio	95.1	%	95.0	%	90.4	%	89.1	%	93.2	%	92.5	%


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

	CBD				Suburban				Total
	30-Sep-05		30-Sep-04		30-Sep-05		30-Sep-04		30-Sep-05		30-Sep-04
Total Office Portfolio	95.1	%	94.9	%	90.8	%	89.3	%	93.4	%	92.8	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	97.6	%	97.6	%	97.7	%
Total Industrial Portfolio	—		—		—		—		—		—

Total Portfolio	95.1	%	95.0	%	90.4	%	89.1	%	93.2	%	92.5	%

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

Boston Properties, Inc.

Third 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	27,335,725		1,403,789		152,009		937,874		29,829,397
Percent of in-service properties	92.1	%	100.0	%	100.0	%	100.0	%	92.7	%
Occupancy @ 9/30/04	92.8	%	97.7	%	0.0	%	—		92.5	%
Occupancy @ 9/30/05	93.4	%	97.6	%	0.0	%	—		93.2	%
Percent change from 3rd quarter 2005 over 3rd quarter 2004 (2):
Rental revenue	2.1	%	1.4	%	0.0	%	1.8	%	2.1	%
Operating expenses and real estate taxes	4.5	%	2.7	%	0.0	%	0.6	%	4.1	%
Net Operating Income (3)	0.8	%	1.1	%	0.0	%	4.5	%	0.9	%
Net Operating Income (3) - without hotels									0.8	%
Rental revenue - cash basis	1.5	%	3.9	%	0.0	%	1.8	%	1.5	%
Net Operating Income (3) - cash basis (4)	-0.2	%	4.2	%	0.0	%	4.5	%	0.0	%
Net Operating Income (3) - cash basis(4) - without hotels									-0.1	%

Same Property Lease Analysis - quarter ended September 30, 2005


	Office			Office/Technical		Industrial		Total
Vacant space available @ 7/1/05 (sf)		1,779,569			33,799		152,009		1,965,377
Square footage of leases expiring or terminated 7/1/2005-9/30/2005		506,515			69,345		—		575,860

Total space for lease (sf)		2,286,084			103,144		152,009		2,541,237

New tenants (sf)		412,316			52,539		—		464,855
Renewals (sf)		83,130			16,806		—		93,936

Total space leased (sf)		495,446			69,345		—		564,791

Space available @ 9/30/05 (sf)		1,790,638			33,799		152,009		1,976,446

Net (increase)/decrease in available space (sf)		(11,069	)		—		—		(11,069	)
Average lease term (months)		92			—		—		83
Average free rent (days)		54			—		—		48
2nd generation TI/Comm PSF	$	40.59		$	—	$	—	$	35.86
Increase (decrease) in 2nd generation gross rents (4)		-3.79	%		—		—		-1.67	%
Increase (decrease) in 2nd generation net rents (4)		-13.53	%		—		—		-10.28	%

(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)	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 364,757 square feet.

Boston Properties, Inc.

Third Quarter 2005

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	9/30/2005			9/30/2004
	*(in thousands)*
Net income available to common shareholders	$	57,551		$	68,542
Gains on sales of real estate from discontinued operations, net of minority interest		—			(4,150	)
Income from discontinued operations, net of minority interest		74			831
Gains on sales of real estate, net of minority interest		—			—
Minority interest in Operating Partnership		27,032			17,178
Income from unconsolidated joint ventures		(1,117	)		(460	)
Minority interest in property partnerships		(1,527	)		(1,447	)

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		82,013			80,494
Add:
Depreciation and amortization		65,905			65,480
Interest expense		75,700			77,698
General and administrative expense		13,270			13,002
Losses from early extinguishments of debt		—			—
Subtract:
Interest and other income		(4,763	)		(908	)
Development and management services income		(4,923	)		(5,832	)

Consolidated Net Operating Income	$	227,202		$	229,934

Same Property Net Operating Income	$	205,885		$	203,961

Net operating income from non Same Properties (1)		19,230			24,173
Termination income		2,087			1,800

Consolidated Net Operating Income	$	227,202		$	229,934

Same Property Net Operating Income	$	205,885		$	203,961
Less straight line rent and fair value lease revenue		10,454			8,627

Same Property Net Operating Income - cash basis	$	195,431		$	195,334

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

Boston Properties, Inc.

Third 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-Sep-05		30-Sep-04		$ Change			% Change		30-Sep-05			30-Sep-04		$ Change			% Change		30-Sep-05		30-Sep-04		$ Change		% Change
Rental Revenue	$	302,733	$	296,414						$	5,842		$	5,762						$	—	$	—
Less Termination Income		1,918		1,800							—			—							—		—

Rental revenue - subtotal		300,815		294,614		6,201		2.1	%		5,842			5,762		80		1.4	%		—		—		—	0.0	%
Operating expenses and real estate taxes		105,950		101,350		4,600		4.5	%		1,175			1,144		31		2.7	%		—		—		—	0.0	%

Net Operating Income (1)	$	194,865	$	193,264	$	1,601		0.8	%	$	4,667		$	4,618	$	49		1.1	%	$	—	$	—	$	—	0.0	%

Rental revenue - subtotal	$	300,815	$	294,614						$	5,842		$	5,762						$	—	$	—
Less straight line rent and fair value lease revenue		10,487		8,519		1,968		23.1	%		(34	)		108		(142	)	(131.5	%)		—		—		—	0.0	%

Rental revenue - cash basis		290,328		286,095		4,233		1.5	%		5,876			5,654		222		3.9	%		—		—		—	0.0	%
Less:
Operating expenses and real estate taxes		105,950		101,350		4,600		4.5	%		1,175			1,144		31		2.7	%		—		—		—	0.0	%

Net Operating Income (2) - cash basis	$	184,378	$	184,745	$	(367	)	-0.2	%	$	4,701		$	4,510	$	191		4.2	%	$	—	$	—	$	—	0.0	%


	Hotel								Total
	For the three months ended				$ Change		% Change		For the three months ended				$ Change		% Change
	30-Sep-05		30-Sep-04		$ Change		% Change		30-Sep-05		30-Sep-04		$ Change		% Change
Rental Revenue	$	20,139	$	19,788					$	328,714	$	321,964
Less Termination Income		—		—						1,918		1,800

Rental revenue - subtotal		20,139		19,788	$	351	1.8	%		326,796		320,164		6,632	2.1	%
Operating expenses and real estate taxes		13,786		13,709		77	0.6	%		120,911		116,203		4,708	4.1	%

Net Operating Income (1)	$	6,353	$	6,079	$	274	4.5	%	$	205,885	$	203,961	$	1,925	0.9	%

Rental revenue - subtotal	$	20,139	$	19,788					$	326,796	$	320,164
Less straight line rent and fair value lease revenue		1		—		1	100.0	%		10,454		8,627		1,827	21.2	%

Rental revenue - cash basis		20,138		19,788		350	1.8	%		316,342		311,537		4,805	1.5	%
Less:
Operating expenses and real estate taxes		13,786		13,709		77	0.6	%		120,911		116,203		4,708	4.1	%

Net Operating Income (2) - cash basis	$	6,352	$	6,079	$	273	4.5	%	$	195,431	$	195,334	$	97	0.0	%

(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.

Third Quarter 2005

LEASING ACTIVITY

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


	Office			Office/Technical			Industrial			Total
Vacant space available @ 7/1/2005 (sf)		1,950,821			33,799			152,009			2,136,629
Property dispositions/ assets taken out of service (sf)		—			—			—			—
Property acquisitions/ assets placed in-service (sf)		—			—			—			—
Leases expiring or terminated 7/1/2005-9/30/2005 (sf)		508,960			69,345			—			578,305

Total space for lease (sf)		2,460,658			103,144			152,009			2,715,811

New tenants (sf)		460,084			52,539			—			512,623
Renewals (sf)		83,130			16,806			—			99,936

Total space leased (sf)		543,214			69,345			—			612,559	(1)

Space available @ 9/30/2005 (sf)		1,916,567			33,799			152,009			2,102,375

Net (increase)/decrease in available space (sf)		33,377			—			—			33,377
Average lease term (months)		92			19			—			83
Average free rent (days)		54			—			—			48
2nd generation TI/Comm PSF	$	40.59		$	3.39		$	—		$	35.86
Increase (decrease) in 2nd generation gross rents (2)		-3.79	%		32.36	%		0.00	%		-1.67	%
Increase (decrease) in 2nd generation net rents (3)		-13.53	%		27.03	%		0.00	%		-10.28	%

(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 364,757.

(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 364,757.


	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	14,052	159,686	-21.06	%	-29.99	%	173,738
Washington	31,339	125,046	9.72	%	9.74	%	156,385
New York	21,112	73,143	8.70	%	-5.02	%	94,255
San Francisco	—	183,111	5.05	%	-6.13	%	183,111
Princeton	—	5,070	-1.67	%	-2.58	%	5,070

	66,503	546,056	-1.67	%	-10.28	%	612,559

Boston Properties, Inc.

Third Quarter 2005

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q3 2005		Q2 2005		Q1 2005		2004		2003
Recurring capital expenditures	$	5,637	$	6,195	$	1,461	$	25,101	$	18,514
Planned non-recurring capital expenditures associated with acquisition properties		1,182		237		962		4,889		4,464
Hotel improvements, equipment upgrades and replacements		1,539		182		516		1,001		2,345

	$	8,358	$	6,614	$	2,939	$	30,991	$	25,323


*2nd Generation Tenant Improvements and Leasing Commissions*

	Q3 2005		Q2 2005		Q1 2005		2004		2003
Office
Square feet		476,711		958,750		399,125		3,356,267		2,635,914

Tenant improvement and lease commissions PSF	$	40.59	$	30.26	$	11.85	$	24.74	$	14.41

Office/Technical
Square feet		69,345		—		—		195,953		169,893

Tenant improvement and lease commissions PSF	$	3.39	$	—	$	—	$	14.35	$	6.43

Industrial
Square feet		—		—		—		—		—

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

Average tenant improvement and lease commissions PSF	$	35.86	$	30.26	$	11.85	$	24.17	$	13.93

Boston Properties, Inc.

Third Quarter 2005

ACQUISITIONS/DISPOSITIONS

as of September 30, 2005


*ACQUISITIONS*
For the period from January 1, 2005 through September 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 September 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.

Third Quarter 2005


*VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)* as of September 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 September 30, 2005		Estimated Future Equity Requirement		Percentage Leased (2)
Seven Cambridge Center and West Garage	Q1 2006	Q1 2006	Cambridge, MA	1	231,028	$	85,036,558	$	145,933,861	$	125,000,000	$	73,629,605	$	9,526,908	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston , VA	1	182,000		24,750,049		45,754,416		—		—		21,004,367	100	%
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		31,416,086		69,100,000		47,225,000		8,462,921		—	46	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		15,262,371		31,625,638		28,095,187		12,025,000		293,080	N/A
505 9th Street	Q4 2007	Q4 2008	Washington, D.C.	1	323,000		20,144,917		65,000,000		—		—		44,855,083	73	%

Total Development Properties				3	1,054,585	$	176,609,981	$	357,413,915	$	200,320,187	$	94,117,526	$	75,679,438	53	%


*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 September 30, 2005		Estimated Future Equity Requirement		Percentage Leased
901 New York Avenue (25% ownership)	Q3 2004	Q2 2005	Washington, D.C.	1	539,215	$	43,087,784	$	44,777,000	$	42,500,000	$	42,500,000	$	1,689,216	96	%

Total Developments Placed in Service				1	539,215	$	43,087,784	$	44,777,000	$	42,500,000	$	42,500,000	$	1,689,216	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 October 25, 2005.

Boston Properties, Inc.

Third Quarter 2005


*VALUE CREATION PIPELINE - OWNED LAND PARCELS* as of September 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 September 30, 2005
Location	Acreage	Developable Square Feet
Princeton, NJ (1)	149.9	1,900,000
Washington, D.C. (2)	3.7	1,132,000
Framingham, MA (3)	21.5	300,000
Cambridge, MA (4)	—	200,000

	175.1	3,532,000

(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.

Third 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 as adjusted 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 dated October 25, 2005

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 THIRD QUARTER 2005 RESULTS


Reports diluted FFO per share of $1.07		Reports diluted EPS of $0.50

BOSTON, MA, October 25, 2005 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the third quarter ended September 30, 2005.

Funds from Operations (FFO) for the quarter ended September 30, 2005 were $123.7 million, or $1.11 per share basic and $1.07 per share diluted. This compares to FFO for the quarter ended September 30, 2004 of $119.9 million, or $1.11 per share basic and $1.07 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 111,775,512 and 119,176,703, respectively, for the quarter ended September 30, 2005 and 108,339,350 and 116,149,006, respectively, for the same quarter last year.

Net income available to common shareholders was $57.6 million for the three months ended September 30, 2005, compared to $68.5 million for the quarter ended September 30, 2004. Net income available to common shareholders per share (EPS) for the quarter ended September 30, 2005 was $0.51 basic and $0.50 on a diluted basis. This compares to EPS for the third quarter of 2004 of $0.63 basic and $0.62 on a diluted basis. EPS for the quarter ended September 30, 2005 reflects a reduction of $0.09, on a diluted basis, representing the amount of earnings allocated to the holders of Series Two Preferred Units of limited partnership interest in the Company’s Operating Partnership to account for their right to participate on an as-converted basis in the special dividend that is payable on October 31, 2005 to stockholders of record as of the close of business on September 30, 2005. EPS for the quarter ended includes $0.03, on a diluted basis, related to gains on sales of real estate and discontinued operations.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2005. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of September 30, 2005, the Company’s portfolio consisted of 123 properties comprising approximately 42.0 million square feet, including three properties under construction and one expansion project totaling 1.1 million square feet. The overall percentage of leased space for the 117 properties in service as of September 30, 2005 was 93.3%.

As previously announced on August 10, 2005, the Company appointed E. Mitchell Norville, previously Senior Vice President and Regional Manager of the Washington, D.C. region, to the position of Executive Vice President for Operations, succeeding Robert E. Burke. In addition, Peter D. Johnston, who has been with the Company for 18 years and who most recently served as Senior Vice President, Development, was named Senior Vice President and Regional Manager of the Washington, D.C. region.

Significant events of the third quarter include:

•

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 $225.0 million secured draw from the Company’s revolving credit facility.

•

On July 21, 2005, the Company’s 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 special cash dividend is in addition to the regular quarterly dividend of $0.68 per common share that is payable on October 31, 2005. The holders of common units of limited partnership interest in the Company’s Operating Partnership will receive the same amount, at the same time. Holders of Series Two Preferred Units of limited partnership interest will participate in the special cash dividend on an as-converted basis in connection with their regular February 2006 distribution payment as provided in the Operating Partnership’s partnership agreement. Because the holders of options to purchase shares of the Company’s common stock are not eligible to receive dividends, the Company’s Board of Directors approved adjustments that are intended to ensure that its employees, directors and other persons who hold such stock options are not disadvantaged by the planned special cash dividend.

•

On August 3, 2005, the Company commenced a planned interest rate hedging program in contemplation of obtaining ten-year fixed rate financing in early 2007. The Company has since entered into nine forward-starting interest rate swap contracts based on a weighted-average forward-starting ten-year treasury rate of 4.32% per annum on notional amounts aggregating $425.0 million. The swaps go into effect in February 2007 and expire in February 2017.

•

On August 5, 2005, the Company executed a contract for the sale of 40-46 Harvard Street, an industrial property totaling approximately 152,000 net rentable square feet located in Westwood, Massachusetts, at a sale price of approximately $7.8 million. The sale is subject to the satisfaction of customary closing conditions and, although there can be no assurances that the sale will be consummated, we have no reason to believe that the closing will not occur as expected by the end of November 2005.

•

On September 26, 2005, the Company commenced construction on its previously announced joint venture project consisting of a build-to-suit Class A office property located at 505 9^th Street in Washington, D.C. totaling 323,000 net

rentable square feet, of which 230,000 net rentable square feet have been pre-leased to a law firm for a 15-year term. In conjunction with the commencement of construction, the Company’s Operating Partnership issued approximately 254,000 common units of limited partnership interest and cash of approximately $4.9 million to its joint venture partner as consideration for the Company’s 50% interest in the joint venture. The joint venture partner had contributed the land for its 50% interest.

Transactions completed subsequent to September 30, 2005:

•

On October 1, 2005, the Company placed-in-service the West Garage phase of 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 square feet of office, research laboratory and retail space plus parking for approximately 800 cars. The Company has signed a lease for 100% of the space with the Massachusetts Institute of Technology for occupancy by its affiliate, the Eli and Edythe L. Broad Institute. The Company expects the remaining development to be completed in the first quarter of 2006.

•

On October 4, 2005, the Company repaid the mortgage loan collateralized by its Embarcadero Center West Tower property totaling approximately $90.8 million. There was no prepayment penalty associated with the repayment. The mortgage loan bore interest at a fixed rate of 6.50% per annum and was scheduled to mature on January 1, 2006.

EPS and FFO per Share Guidance:

The Company’s guidance for the fourth quarter of 2005 and the full year 2006 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below.


	Fourth Quarter 2005					Full Year 2006
	Low		-	High		Low		-	High
Projected EPS (diluted)	$	1.29	-	$	1.32	$	2.17	-	$	2.32
Add:
Projected Company Share of Real Estate Depreciation and Amortization		0.49	-		0.49		1.95	-		1.95

Less:
Projected Company Share of Gains on Sales of Real Estate		0.74	-		0.76		0.00	-		0.00

Projected FFO per Share (diluted)	$	1.04	-	$	1.05	$	4.12	-	$	4.27

The foregoing estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and earnings impact of the events referenced in this release. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Boston Properties will host a conference call tomorrow, October 26, 2005 at 10:00 AM (Eastern Time), open to the general public, to discuss the third quarter 2005 results, the fourth quarter 2005 and full year 2006 projections and other related matters. The number to call for this interactive teleconference is (800) 218-0204. A replay of the conference call will be available through November 2, 2005 by dialing (800) 405-2236 and entering the passcode 11040118. 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’ third 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 (including the impact of interest rates on our hedging program), the effects of local economic and market conditions, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, including its guidance for the fourth quarter of 2005 and the full fiscal year 2006.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	274,522		$	273,603		$	830,627		$	790,889
Recoveries from tenants		43,969			43,381			129,165			123,228
Parking and other		13,470			15,645			41,516			42,916

Total rental revenue		331,961			332,629			1,001,308			957,033
Hotel revenue		20,139			19,768			54,207			52,112
Development and management services		4,923			5,832			13,596			15,115
Interest and other		4,763			908			9,337			9,526

Total revenue		361,786			359,137			1,078,448			1,033,786

Expenses
Operating:
Rental		111,112			108,754			326,051			309,715
Hotel		13,786			13,709			40,051			38,763
General and administrative		13,270			13,002			42,335			38,095
Interest		75,700			77,698			233,287			226,792
Depreciation and amortization		65,905			65,480			201,102			181,853
Losses from early extinguishments of debt		—			—			12,896			6,258

Total expenses		279,773			278,643			855,722			801,476

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		82,013			80,494			222,726			232,310
Minority interests in property partnerships		1,527			1,447			4,651			3,124
Income from unconsolidated joint ventures		1,117			460			3,299			2,716

Income before minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		84,657			82,401			230,676			238,150
Minority interest in Operating Partnership		(27,032	)		(17,178	)		(57,482	)		(52,169	)

Income before gains on sales of real estate and land held for development and discontinued operations		57,625			65,223			173,194			185,981
Gains on sales of real estate, net of minority interest		—			—			102,175			8,132
Gains on sales of land held for development, net of minority interest		—			—			1,209			—

Income before discontinued operations		57,625			65,223			276,578			194,113
Discontinued operations:
Income (loss) from discontinued operations, net of minority interest		(74	)		(831	)		(574	)		1,356
Gains on sales of real estate from discontinued operations, net of minority interest		—			4,150			8,397			26,201

Net income available to common shareholders	$	57,551		$	68,542		$	284,401		$	221,670

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	0.51		$	0.60		$	2.49		$	1.84
Discontinued operations, net of minority interest		—			0.03			0.07			0.26

Net income available to common shareholders	$	0.51		$	0.63		$	2.56		$	2.10

Weighted average number of common shares outstanding		111,776			108,339			110,915			105,492

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	0.50		$	0.59		$	2.44		$	1.80
Discontinued operations, net of minority interest		—			0.03			0.07			0.25

Net income available to common shareholders	$	0.50		$	0.62		$	2.51		$	2.05

Weighted average number of common and common equivalent shares outstanding		114,090			110,581			113,195			107,718

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	September 30, 2005			December 31, 2004
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	8,792,127		$	9,033,858
Construction in progress		144,009			35,063
Land held for future development		244,783			222,306
Real estate held for sale, net		444			—
Less: accumulated depreciation		(1,237,469	)		(1,143,369	)

Total real estate		7,943,894			8,147,858

Cash and cash equivalents		450,577			239,344
Cash held in escrows		27,552			24,755
Investments in marketable securities		37,500			—
Tenant and other receivables, net of allowance for doubtful accounts of $2,476 and $2,879, respectively		32,463			25,500
Accrued rental income, net of allowance of $3,931 and $4,252, respectively		292,289			251,236
Deferred charges, net		239,443			254,950
Prepaid expenses and other assets		63,859			38,630
Investments in unconsolidated joint ventures		96,311			80,955

Total assets	$	9,183,888		$	9,063,228

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,450,904		$	3,541,131
Unsecured senior notes, net of discount		1,470,963			1,470,683
Unsecured line of credit		—			—
Accounts payable and accrued expenses		81,730			94,451
Dividends and distributions payable		443,437			91,428
Interest rate contract		—			1,164
Accrued interest payable		39,443			50,670
Other liabilities		137,526			91,300

Total liabilities		5,624,003			5,340,827

Commitments and contingencies		—			—

Minority interests		725,077			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, 112,579,787 and 110,399,385 shares issued and 112,500,887 and 110,320,485 shares outstanding in 2005 and 2004, respectively		1,125			1,103
Additional paid-in capital		2,749,432			2,633,980
Earnings in excess of dividends		104,559			325,452
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(5,564	)		(6,103	)
Accumulated other comprehensive loss		(12,022	)		(15,637	)

Total stockholders’ equity		2,834,808			2,936,073

Total liabilities and stockholders’ equity	$	9,183,888		$	9,063,228

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended September 30,						Nine months ended September 30,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	57,551		$	68,542		$	284,401		$	221,670

Add:
Minority interest in Operating Partnership		27,032			17,178			57,482			52,169
Less:
Minority interests in property partnerships		1,527			1,447			4,651			3,124
Income from unconsolidated joint ventures		1,117			460			3,299			2,716
Gains on sales of real estate, net of minority interest		—			—			102,175			8,132
Gains on sales of land held for development, net of minority interest		—			—			1,209			—
Income (loss) from discontinued operations, net of minority interest		(74	)		(831	)		(574	)		1,356
Gains on sales of real estate from discontinued operations, net of minority interest		—			4,150			8,397			26,201

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		82,013			80,494			222,726			232,310

Add:
Real estate depreciation and amortization (2)		67,702			67,538			206,489			187,330
Income (loss) from discontinued operations		(88	)		(945	)		(686	)		1,802
Income from unconsolidated joint ventures		1,117			460			3,299			2,716
Less:
Minority interests in property partnerships’ share of funds from operations		32			17			1			(1,045	)
Preferred distributions		(3,200	)(3)		(3,491	)		(9,820	)(3)		(11,689	)

Funds from operations (FFO)		147,576			144,073			422,009			411,424

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

Funds from operations after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate		147,576			144,073			433,050			411,424
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		23,905			24,136			70,770			70,812

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	$	123,671		$	119,937		$	362,280		$	340,612

Our percentage share of funds from operations - basic		83.80	%		83.25	%		83.66	%		82.79	%

Weighted average shares outstanding - basic		111,776			108,339			110,915			105,492

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.11		$	1.11		$	3.27		$	3.23

FFO per share basic	$	1.11		$	1.11		$	3.18		$	3.23

Weighted average shares outstanding - diluted		119,177			116,149			118,461			113,998

FFO per share diluted after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.07		$	1.07		$	3.16		$	3.11

FFO per share diluted	$	1.07		$	1.07		$	3.08		$	3.11

(1)

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $65,905, $65,480, $201,102 and $181,853, our share of unconsolidated joint venture real estate depreciation and amortization of $2,188, $1,636, $6,380 and $5,016 and depreciation and amortization from discontinued operations of $2, $1,080, $186 and $2,353, less corporate related depreciation and amortization of $393, $658, $1,179 and $1,892 for the three months and nine months ended September 30, 2005 and 2004, respectively.

(3)	Excludes approximately $12.1 million of income allocated to the holders of Series Two Preferred Units to account for their right to participate on an as-converted basis in the special dividend to be funded using proceeds from previously completed sales of real estate.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	September 30, 2005		December 31, 2004
Greater Boston	91.0	%	90.2	%
Greater Washington, D.C.	97.5	%	97.9	%
Midtown Manhattan	97.6	%	96.4	%
Baltimore, MD	N/A		90.9	%
Richmond, VA	N/A		91.3	%
Princeton/East Brunswick, NJ	86.7	%	90.2	%
Greater San Francisco	85.9	%	80.3	%

Total Portfolio	93.3	%	92.1	%


	% Leased by Type
	September 30, 2005		December 31, 2004
Class A Office Portfolio	93.5	%	92.3	%
Office/Technical Portfolio	97.6	%	97.6	%
Industrial Portfolio	0.0	%	0.0	%

Total Portfolio	93.3	%	92.1	%