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FORM 8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): January 30, 2006

BOSTON PROPERTIES, INC.

(Exact name of registrant as specified in charter)

Delaware

1-13087

04-2473675

(State or Other Jurisdiction

of Incorporation)

(Commission

File Number)

(IRS Employer

Identification No.)

111 Huntington Avenue, Suite 300

Boston, Massachusetts

02199

(Address of Principal Executive Offices)

(Zip Code)

(617) 236-3300

(Registrant’s telephone number, including area code)

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

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

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

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

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

Item 2.02.

Results of Operations and Financial Condition.

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

On January 30, 2006, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the fourth 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, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.


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

*99.2		Press release dated January 30, 2006.

*	Filed herewith.

SIGNATURES

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


		BOSTON PROPERTIES, INC.

Date: January 30, 2006	By:	/s/ DOUGLAS T. LINDE
		Douglas T. Linde Chief Financial Officer

EXHIBIT INDEX


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

*99.2		Press release dated January 30, 2006.

*	Filed herewith.

BOSTON PROPERTIES INC. SUPPLEMENTAL OPERATING AND FINANCIAL DATA

Exhibit 99.1

LOGO

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2005

Boston Properties, Inc.

Fourth 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
Reconciliation to Diluted Funds From Operations		10
Funds Available for Distribution and Interest Coverage Ratios		11
Discontinued Operations		12
Capital Structure		13
Debt Analysis		14-16
Unconsolidated Joint Ventures		17-18
Value-Added Fund		19
Portfolio Overview-Square Footage		20
In-Service Property Listing		21-23
Top 20 Tenants and Tenant Diversification		24
Office Properties-Lease Expiration Roll Out		25
Office/Technical 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 “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects,” 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 effects of acquisitions and dispositions, including possible impairment charges, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Boston Properties, Inc.

Fourth Quarter 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 two hotels. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants' needs. The Company holds a superior track record in developing premium Central Business District (CBD) office buildings, suburban office centers and build-to-suit projects for the U.S. Government and a diverse array of high-credit tenants.

Management

Boston Properties’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of thirty-five individuals average twenty-five 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 distinguished 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 December 31, 2005)


Corporate Headquarters		Boston, Massachusetts
Markets		Boston, Midtown Manhattan, Washington, D.C., San Francisco, and Princeton, N.J.
Fiscal Year-End		December 31
Total Properties		121
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		3.67%
Special Dividend paid on October 31, 2005		$2.50 per common share / unit
Total Market Capitalization		$15.1 billion
Senior Debt Ratings		Baa2 (Moody’s); BBB (S&P and Fitch)

Boston Properties, Inc.

Fourth Quarter 2005

INVESTOR INFORMATION

Board of Directors

Mortimer B. Zuckerman

Chairman of the Board

Edward H. Linde

President and Chief Executive Officer, Director

Lawrence S. Bacow

Director

Zoë Baird

Director

William M. Daley

Director, Chairman of Nominating & Corporate Governance Committee

Carol B. Einiger

Director

Alan J. Patricof

Director, Chairman of Audit Committee

Richard E. Salomon

Director, Chairman of Compensation Committee

Martin Turchin

Director

David A. Twardock

Director

Management

Douglas T. Linde

Executive Vice President, Chief Financial Officer and Treasurer

E. Mitchell Norville

Executive Vice President for Operations

Raymond A. Ritchey

Executive Vice President, National Director of Acquisitions & Development

Peter D. Johnston

Senior Vice President and Regional Manager of Washington, D.C.

Bryan J. Koop

Senior Vice President and Regional Manager of Boston

Mitchell S. Landis

Senior Vice President and Regional Manager of Princeton

Robert E. Pester

Senior Vice President and Regional Manager of San Francisco

Robert E. Selsam

Senior Vice President and Regional Manager of New York

Frank D. Burt

Senior Vice President and General Counsel

Arthur S. Flashman

Vice President and Controller

Company Information

Corporate Headquarters

111 Huntington Avenue

Suite 300

Boston, MA 02199

(t) 617.236.3300

(f) 617.236.3311

Trading Symbol

BXP

Stock Exchange Listing

New York Stock Exchange

Investor Relations

Boston Properties, Inc.

111 Huntington Avenue, Suite 300

Boston, MA 02199

(t) 617.236.3322

(f) 617.236.3311

www.bostonproperties.com

Inquires

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):



	Q4 2005			Q3 2005			Q2 2005			Q1 2005			Q4 2004
High Price	$	76.05		$	76.25		$	70.00		$	63.65		$	64.85
Low Price	$	65.11		$	69.23		$	59.65		$	56.93		$	56.25
Average Closing Price	$	71.40		$	72.21		$	65.92		$	60.15		$	60.40
Closing Price, at the end of the quarter	$	74.13		$	70.90		$	70.00		$	60.23		$	64.67
Dividends per share - annualized (1)	$	2.72		$	2.72		$	2.72		$	2.60		$	2.60
Closing dividend yield - annualized		3.67	%		3.84	%		3.89	%		4.32	%		4.02	%
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)		139,158			139,153			138,389			137,634			137,399
Closing market value of outstanding shares and units (thousands)	$	10,315,783		$	9,865,948		$	9,687,230		$	8,289,696		$	8,885,593

(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 paid on October 31, 2005.

Timing

Quarterly results for 2006 will be announced according to the following schedule:



First Quarter		Late April 2006
Second Quarter		Late July 2006
Third Quarter		Late October 2006
Fourth Quarter		Late January 2007

Boston Properties, Inc.

Fourth Quarter 2005

RESEARCH COVERAGE

Equity Research Coverage

David Aubuchon

A.G. Edwards & Sons

314.955.5452

Ross Nussbaum / John Kim

Banc of America Securities

212.847.5668 / 212.847.5761

Ross Smotrich / Jeffrey Langbaum

Bear Stearns & Company

212.272.8046 / 212.272.4201

Jonathan Litt / Jordan Sadler

Citigroup Global Markets

212.816.0231 / 212.816.0438

Louis Taylor / Christoper Capolongo

Deutsche Bank Securities

203.863.2381 / 212.250.7726

Wilkes Graham / Saad Hashemy

Friedman, Billings, Ramsey

703.312.9737 / 703.469.1218

Jay Habermann / Sloan Bohlen

Goldman Sachs & Company

917.343.4260 / 212.902.2796

Jim Sullivan / Michael Knott

Green Street Advisors

949.640.8780

Anthony Paolone / Michael Mueller

J.P. Morgan Securities

212.622.6682 / 212.622.6689

David Rodgers / Christopher Chapman

KeyBanc Capital Markets

216.263.4785 / 216.563.2357

David Harris / David Toti

Lehman Brothers

212.526.1790 / 212.526.2002

Steve Sakwa / Brian Legg

Merill Lynch & Company

212.449.0335 / 212.449.1153

Gregory Whyte / David Cohen

Morgan Stanley & Company

212.761.6331 / 212.761.8564

James Feldman / Steven Yudenfreund

Prudential Equity Group

212.778.1724 / 212.778.3210

Jay Leupp

RBC Capital Markets (US)

415.633.8588

John Guinee / Eli Fleminger

Stifel, Nicolaus & Company

410.454.5520 / 410.454.4830

Debt Research Coverage

Chris Brown

Banc of America Securities

704.386.2524

Sue Berliner / Elizabeth Carter

Bear Stearns & Company

212.272.3824 / 212.272.0217

Thomas Cook

Citigroup Global Markets

212.723.1112

Thierry Perrein

Credit Suisse First Boston

212.538.8618

Scott O’Shea

Deutsche Bank Securities

212.250.7190

Mark Streeter

J.P. Morgan Securities

212.834.5086

John Forrey / James Rank

Merrill Lynch & Company

212.449.1812 / 212.449.6533

Rating Agencies:

Brendan Thorpe

Fitch Ratings

212.908.0538

Karen Nickerson

Moody’s Investors Service

212.553.4924

James Fielding

Standard & Poor’s

212.438.2452

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company 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.

Fourth 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 through 11. 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
	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004
Income Items:
Revenue	$	366,333		$	359,094		$	357,935		$	354,273		$	359,316
Straight line rent (SFAS 13)	$	13,596		$	12,287		$	19,294		$	20,871		$	19,218
Fair value lease revenue (SFAS 141) (1)	$	293		$	294		$	295		$	292		$	245
Lease termination fees (included in revenue)	$	4,038		$	2,087		$	3,979		$	1,226		$	634
Capitalized interest	$	2,425		$	1,734		$	866		$	693		$	721
Capitalized wages	$	1,340		$	1,492		$	1,422		$	1,649		$	1,549
Operating Margins [(rental revenue - rental expense)/rental revenue] (2)		68.4	%		68.4	%		69.5	%		68.9	%		69.1	%
Net income available to common shareholders	$	158,298		$	57,551		$	165,490		$	61,242		$	62,254
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)
	$	126,701		$	123,671		$	121,309		$	117,301		$	118,891
FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.09		$	1.07		$	1.06		$	1.03		$	1.05
Net income available to common shareholders per share - basic	$	1.38		$	0.51		$	1.46		$	0.56		$	0.57
Net income available to common shareholders per share - diluted	$	1.35		$	0.50		$	1.43		$	0.55		$	0.56
Dividends per common share (5)	$	0.68		$	3.18		$	0.68		$	0.65		$	0.65
Funds available for distribution to common shareholders and common unitholders (FAD) (4)	$	101,976		$	110,836		$	92,165		$	114,618		$	78,964
Ratios:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (6)		2.93			2.88			2.54			2.59			2.64
Interest Coverage Ratio (including capitalized interest) - cash basis (6)		2.84			2.81			2.51			2.57			2.62
FFO Payout Ratio (7)		62.39	%		63.55	%		64.15	%		63.11	%		61.90	%
FAD Payout Ratio (8)		89.33	%		82.25	%		98.15	%		75.01	%		109.43	% (9)


	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004
Capitalization:
Total Debt	$	4,826,254		$	4,921,867		$	4,898,757		$	5,011,016		$	5,011,814
Price @ Quarter End	$	74.13		$	70.90		$	70.00		$	60.23		$	64.67
Equity Value @ Quarter End	$	10,315,783		$	9,865,948		$	9,687,230		$	8,289,696		$	8,885,593
Total Market Capitalization (10)	$	15,142,037		$	14,787,815		$	14,585,987		$	13,300,712		$	13,897,407
Debt/Total Market Capitalization (10)		31.87	%		33.28	%		33.59	%		37.67	%		36.06	%

(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 $8,287, $9,057, $6,992, $6,476 and $6,541 for the three months ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 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 11.

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

(6)	For additional detail, see page 11.

(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 paid on 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 paid on 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 have been 89.23%.

(10)	For additional detail, see page 13.

Boston Properties, Inc.

Fourth Quarter 2005

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)


	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004
ASSETS
Real estate	$	8,721,903		$	8,792,127		$	8,736,776		$	9,024,693		$	9,033,858
Construction in progress		177,576			144,009			99,727			66,699			35,063
Land held for future development		248,645	(1)		244,783			239,314			234,010			222,306
Real estate held for sale		—			444			—			35,217			—
Less accumulated depreciation		(1,264,073	)		(1,237,469	)		(1,190,465	)		(1,195,648	)		(1,143,369	)

Total real estate		7,884,051			7,943,894			7,885,352			8,164,971			8,147,858
Cash and cash equivalents		261,496			450,577			507,182			209,307			239,344
Cash held in escrows		25,618			27,552			29,077			25,613			24,755
Investments in marketable securities		—			37,500			25,000			—			—
Tenant and other receivables, net		52,668			32,463			28,230			27,442			25,500
Accrued rental income, net		302,356			292,289			280,257			272,035			251,236
Deferred charges, net		242,660			239,443			243,674			255,695			254,950
Prepaid expenses and other assets		41,261			63,859			43,042			63,073			38,630
Investments in unconsolidated joint ventures		90,207			96,311			82,810			79,855			80,955

Total assets	$	8,900,317		$	9,183,888		$	9,124,624		$	9,097,991		$	9,063,228

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,297,192		$	3,450,904		$	3,427,892		$	3,540,242		$	3,541,131
Unsecured senior notes, net of discount		1,471,062			1,470,963			1,470,865			1,470,774			1,470,683
Unsecured line of credit		58,000	(2)		—	(2)		—			—			—
Accounts payable and accrued expenses		102,729			81,730			92,649			105,009			94,451
Dividends and distributions payable		107,643			443,437			95,597			91,259			91,428
Interest rate contract		—			—			—			—			1,164
Accrued interest payable		47,911			39,443			47,744			41,987			50,670
Other liabilities		154,123	(1)		137,526			132,427			134,716			91,300

Total liabilities		5,238,660			5,624,003			5,267,174			5,383,987			5,340,827

Commitments and contingencies		—			—			—			—			—

Minority interests		740,085			725,077			795,767			782,532			786,328

Stockholders’ Equity:
Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding		—			—			—			—			—
Common stock, $.01 par value, 250,000,000 shares authorized, 112,542,262, 112,500,887, 111,403,373, 110,442,177 and 110,320,485 outstanding, respectively		1,125			1,125			1,114			1,104			1,103
Additional paid-in capital		2,750,723			2,749,432			2,679,447			2,639,806			2,633,980
Earnings in excess of dividends		186,328			104,559			404,635			314,907			325,452
Treasury common stock, at cost		(2,722	)		(2,722	)		(2,722	)		(2,722	)		(2,722	)
Unearned compensation		(5,001	)		(5,564	)		(5,503	)		(6,160	)		(6,103	)
Accumulated other comprehensive loss		(8,881	)		(12,022	)		(15,288	)		(15,463	)		(15,637	)

Total stockholders’ equity		2,921,572			2,834,808			3,061,683			2,931,472			2,936,073

Total liabilities and stockholders’ equity	$	8,900,317		$	9,183,888		$	9,124,624		$	9,097,991		$	9,063,228

(1)

Includes approximately $46.0 million of land assets at December 31, 2005. Net proceeds received of approximately $50.0 million at December 31, 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. As a result, the $225.0 million that was drawn on the line of credit is reflected within Mortgage Notes Payable.

Boston Properties, Inc.

Fourth Quarter 2005

CONSOLIDATED INCOME STATEMENTS

(in thousands, except for per share amounts)

(unaudited)


	Three Months Ended
	31-Dec-05			30-Sep-05			30-Jun-05			31-Mar-05			31-Dec-04
Revenue:
Rental
Base Rent	$	279,583		$	274,523		$	277,359		$	278,748		$	276,209
Recoveries from tenants		44,098			43,983			41,836			43,337			41,552
Parking and other		14,051			13,470			14,121			13,925			14,353

Total rental revenue		337,732			331,976			333,316			336,010			332,114
Hotel revenue		22,161			17,453			17,566			12,096			21,050
Development and management services		3,714			4,923			4,137			4,536			5,324
Interest and other		2,726			4,742			2,916			1,631			828

Total revenue		366,333			359,094			357,935			354,273			359,316

Expenses:
Operating		68,440			66,387			63,379			63,695			62,327
Real estate taxes		43,844			44,725			43,076			44,789			44,287
Hotel operating		16,125			12,260			12,495			10,809			14,999
General and administrative		13,136			13,270			14,252			14,813			15,541
Interest (1)		74,804			75,700			78,233			79,354			79,378
Depreciation and amortization		66,290			65,717			67,026			67,796			68,342
Losses from early extinguishments of debt (2)		—			—			12,896			—			—

Total expenses		282,639			278,059			291,357			281,256			284,874

Income before minority interests and income from unconsolidated joint ventures		83,694			81,035			66,578			73,017			74,442
Minority interest in property partnerships		1,366			1,527			1,472			1,652			1,558
Income from unconsolidated joint ventures		1,530			1,117			847			1,335			664

Income before minority interest in Operating Partnership		86,590			83,679			68,897			76,004			76,664
Minority interest in Operating Partnership (3)		(16,928	)		(26,874	)		(14,596	)		(15,677	)		(15,920	)

Income before gains on sales of real estate and land held for development		69,662			56,805			54,301			60,327			60,744
Gains on sales of real estate, net of minority interest		48,542			—			102,073			—			—
Gains on sales of land held for development, net of minority interest		—			—			—			1,208			—

Income before discontinued operations		118,204			56,805			156,374			61,535			60,744
Income (loss) from discontinued operations, net of minority interest		730			746			727			(293	)		423
Gains on sales of real estate from discontinued operations, net of minority interest		39,364			—			8,389			—			1,087

Net income available to common shareholders	$	158,298		$	57,551		$	165,490		$	61,242		$	62,254

INCOME PER SHARE OF COMMON STOCK (EPS)
Net income available to common shareholders per share - basic	$	1.38		$	0.51		$	1.46		$	0.56		$	0.57

Net income available to common shareholders per share - diluted	$	1.35		$	0.50		$	1.43		$	0.55		$	0.56

(1)	Interest expense is reported net of capitalized interest of $2,425, $1,734, $866, $693 and $721 for the three months ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively.

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

(3)

Equals minority interest share of 16.02 %, 16.20% 16.42%, 16.41% and 16.51% of income before minority interest in Operating Partnership after deduction for preferred distributions for the three months ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively.

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

Boston Properties, Inc.

Fourth Quarter 2005

FUNDS FROM OPERATIONS (FFO)

(in thousands, except for per share amounts)

(unaudited)


	Three months ended
	31-Dec-05		30-Sep-05			30-Jun-05		31-Mar-05			31-Dec-04
Net income available to common shareholders	$	158,298	$	57,551		$	165,490	$	61,242		$	62,254
Add:
Minority interest in Operating Partnership		16,928		26,874			14,596		15,677			15,920
Less:
Minority interest in property partnerships		1,366		1,527			1,472		1,652			1,558
Income from unconsolidated joint ventures		1,530		1,117			847		1,335			664
Gain on sales of real estate, net of minority interest		48,542		—			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		730		746			727		(293	)		423
Gain on sales of real estate from discontinued operations, net of minority interest		39,364		—			8,389		—			1,087

Income before minority interests and income from unconsolidated joint ventures		83,694		81,035			66,578		73,017			74,442
Add:
Real estate depreciation and amortization (1)		67,987		67,702			69,247		69,540			69,989
Income (loss) from discontinued operations		869		890			871		(351	)		548
Income from unconsolidated joint ventures		1,530		1,117			847		1,335			664
Less:
Minority property partnerships’ share of funds from operations		114		(32	)		106		(75	)		(123	)
Preferred dividends and distributions		3,098		3,200	(2)		3,340		3,280			3,361

Funds from operations (FFO)		150,868		147,576			134,097		140,336			142,405
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		150,868		147,576			145,138		140,336			142,405
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		24,167		23,905			23,829		23,035			23,514

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)	$	126,701	$	123,671		$	121,309	$	117,301		$	118,891

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.13	$	1.11		$	1.10	$	1.06		$	1.09

FFO per share - basic	$	1.13	$	1.11		$	1.01	$	1.06		$	1.09

Weighted average shares outstanding - basic		112,340		111,776			110,764		110,187			109,359

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.09	$	1.07		$	1.06	$	1.03		$	1.05

FFO per share - basic	$	1.09	$	1.07		$	0.98	$	1.03		$	1.05

Weighted average shares outstanding - diluted		119,497		119,177			118,460		117,721			117,269

(1)

Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $66,290, $65,717, $67,026, $67,796 and $68,342, our share of unconsolidated joint venture real estate depreciation and amortization of $2,174, $2,188, $2,394, $1,798 and $1,798 and depreciation and amortization from discontinued operations of $63, $190, $193, $366 and $393 less corporate related depreciation of $540, $393, $366, $420 and $544 for the three months ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 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 that followed previously completed sales of real estate.

(3)	Based on weighted average shares for the quarter. Company’s share for the quarter ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004 was 83.98%, 83.80%, 83.58%, 83.59% and 83.49%, respectively.

Boston Properties, Inc.

Fourth Quarter 2005

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS

(in thousands, except for per share amounts)

(unaudited)


	December 31, 2005			September 30, 2005				June 30, 2005			March 31, 2005			December 31, 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	$	150,868	133,768	$	147,576		133,381	$	145,138	132,522	$	140,336	131,825	$	142,405	130,987
Effect of Dilutive Securities
Convertible Preferred Units		3,098	4,857		3,200	(1)	5,087		3,340	5,357		3,280	5,357		3,361	5,381
Stock Options and other		—	2,300		—		2,314		—	2,339		—	2,177		—	2,529

Diluted FFO after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	153,966	140,925	$	150,776		140,782	$	148,478	140,218	$	143,616	139,359	$	145,766	138,897
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		23,411	21,428		23,139		21,605		23,039	21,758		22,299	21,638		22,698	21,628

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 (2)	$	130,555	119,497	$	127,637		119,177	$	125,439	118,460	$	121,317	117,721	$	123,068	117,269

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - basic	$	1.13		$	1.11			$	1.10		$	1.06		$	1.09

FFO per share after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate - diluted	$	1.09		$	1.07			$	1.06		$	1.03		$	1.05

(1)	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 that followed previously completed sales of real estate.

(2)	Based on weighted average diluted shares for the quarter. Company’s share for the quarter ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004 was 84.79%, 84.65%, 84.48%, 84.47% and 84.43%, respectively.

Boston Properties, Inc.

Fourth Quarter 2005

Funds Available for Distribution (FAD)

(in thousands)


	Three Months Ended
	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 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)	$	150,868		$	147,576		$	145,138		$	140,336		$	142,405
2nd generation tenant improvements and leasing commissions		(26,663	)		(19,582	)		(29,012	)		(4,730	)		(33,462	) (1)
Straight-line rent		(13,596	)		(12,287	)		(19,294	)		(20,871	)		(19,218	)
Recurring capital expenditures		(9,076	)		(5,637	)		(6,195	)		(1,461	)		(10,921	)
Fair value interest adjustment		(821	)		(818	)		(812	)		(798	)		(798	)
Fair value lease revenue (SFAS 141)		(293	)		(294	)		(295	)		(292	)		(245	)
Hotel improvements, equipment upgrades and replacements		(1,860	)		(1,539	)		(182	)		(516	)		(262	)
Non real estate depreciation		540			393			366			420			544
Stock-based compensation		1,749			1,548			1,584			2,101			898
Partners’ share of joint venture 2nd generation tenant improvement and leasing commissions		1,128			1,476			867			429			23

Funds available for distribution to common shareholder and common unitholders (FAD)	$	101,976		$	110,836		$	92,165		$	114,618		$	78,964

*Interest Coverage Ratios* *(in thousands, except for ratio amounts)*
	Three Months Ended
	December 31, 2005			September 30, 2005			June 30, 2005			March 31, 2005			December 31, 2004
*Excluding Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	83,694		$	81,035		$	66,578		$	73,017		$	74,442
Interest expense		74,804			75,700			78,233			79,354			79,378
Depreciation and amortization expense		66,290			65,717			67,026			67,796			68,342
Depreciation from joint ventures		2,174			2,188			2,394			1,798			1,798
Income from unconsolidated joint ventures		1,530			1,117			847			1,335			664
Discontinued operations - depreciation expense		63			190			193			366			393
Discontinued operations		869			890			871			(351	)		548
Straight-line rent		(13,596	)		(12,287	)		(19,294	)		(20,871	)		(19,218	)
Fair value lease revenue (SFAS 141)		(293	)		(294	)		(295	)		(292	)		(245	)

Subtotal		215,535			214,256			196,553			202,152			206,102

Divided by:
Interest expense (2)		73,540			74,514			77,410			77,988			78,051
Interest Coverage Ratio		2.93			2.88			2.54			2.59			2.64

*Including Capitalized Interest*
Income before minority interests and income from unconsolidated joint ventures	$	83,694		$	81,035		$	66,578		$	73,017		$	74,442
Interest expense		74,804			75,700			78,233			79,354			79,378
Depreciation and amortization expense		66,290			65,717			67,026			67,796			68,342
Depreciation from joint ventures		2,174			2,188			2,394			1,798			1,798
Income from unconsolidated joint ventures		1,530			1,117			847			1,335			664
Discontinued operations - depreciation expense		63			190			193			366			393
Discontinued operations		869			890			871			(351	)		548
Straight-line rent		(13,596	)		(12,287	)		(19,294	)		(20,871	)		(19,218	)
Fair value lease revenue (SFAS 141)		(293	)		(294	)		(295	)		(292	)		(245	)

Subtotal		215,535			214,256			196,553			202,152			206,102

Divided by:
Interest expense (2) (3)		75,965			76,248			78,276			78,681			78,772
Interest Coverage Ratio		2.84			2.81			2.51			2.57			2.62

(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 $1,264, $1,186, $823, $1,366 and $1,327 for the quarters ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively.

(3)	Includes capitalized interest of $2,425, $1,734, $866, $693 and $721 for the quarters ended December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005 and December 31, 2004, respectively.

Boston Properties, Inc.

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


	Three Months Ended
	31-Dec-05		30-Sep-05		30-Jun-05		31-Mar-05			31-Dec-04
Total Revenue (1)	$	2,031	$	2,711	$	2,739	$	1,919		$	3,372
Expenses:
Operating		28		105		191		427			469
Hotel operating		1,071		1,526		1,484		1,477			1,962
Depreciation and amortization		63		190		193		366			393

Total Expenses		1,162		1,821		1,868		2,270			2,824
Income before minority interests		869		890		871		(351	)		548
Minority interest in property partnership		—		—		—		—			41
Minority interest in Operating Partnership		139		144		144		(58	)		84

Income (loss) from discontinued operations (net of minority interest)	$	730	$	746	$	727	$	(293	)	$	423

Properties (2):		Residence Inn by Marriott^® 40-46 Harvard Street		Residence Inn by Marriott^® 40-46 Harvard Street		Residence Inn by Marriott^® 40-46 Harvard Street Old Federal Reserve		Residence Inn by Marriott^® 40-46 Harvard Street Old Federal Reserve			Residence Inn by Marriott^® 40-46 Harvard Street Old Federal Reserve 560 Forbes Boulevard

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

(2)	Discontinued operations does not include the operations of Embarcadero Center West Tower, 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.

Fourth Quarter 2005

CAPITAL STRUCTURE

Debt

(in thousands)


	Aggregate Principal December 31, 2005
Mortgage Notes Payable	$	3,297,192
Unsecured Line of Credit		58,000
Unsecured Senior Notes, net of discount		1,471,062

Total Debt	$	4,826,254

Boston Properties Limited Partnership Unsecured Senior Notes


Settlement Date	5/22/03			3/18/03			1/17/03			12/31/02			Total/Average
Principal Amount	$	250,000		$	300,000		$	175,000		$	750,000		$	1,475,000
Yield (on issue date)		5.075	%		5.636	%		6.280	%		6.296	%		5.95	%
Coupon		5.000	%		5.625	%		6.250	%		6.250	%		5.91	%
Discount		99.329	%		99.898	%		99.763	%		99.650	%		99.659	%
Ratings:
Moody’s		Baa2 (stable)			Baa2 (stable)			Baa2 (stable)			Baa2 (stable)
S&P		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Fitch		BBB (stable)			BBB (stable)			BBB (stable)			BBB (stable)
Maturity Date		6/1/2015			4/15/2015			1/15/2013			1/15/2013
Discount	$	1,400		$	253		$	333		$	1,952		$	3,938

Unsecured Senior Notes, net of discount	$	248,600		$	299,747		$	174,667		$	748,048		$	1,471,062

Equity

(in thousands)


	Shares/Units Outstanding as of 12/31/05	Common Stock Equivalents		Equivalent (1)
Common Stock	112,542	112,542	(2)	$	8,342,738
Common Operating Partnership Units	21,759	21,759	(3)		1,612,995
Series Two Preferred Operating Partnership Units	3,701	4,857			360,049

Total Equity		139,158		$	10,315,783

Total Debt					4,826,254

Total Market Capitalization				$	15,142,037

(1)	Value based on December 31, 2005 closing price of $74.13 per share of common stock.

(2)	Includes 222 shares of restricted stock.

(3)	Includes 355 long-term incentive plan units.

Boston Properties, Inc.

Fourth Quarter 2005

DEBT ANALYSIS

Debt Maturities and Principal Payments

(in thousands)


	2006			2007			2008			2009			2010			Thereafter			Total
Floating Rate Debt	$	17,244		$	381,859		$	475,000		$	—		$	—		$	—		$	874,103
Fixed Rate Debt		130,486			181,377			801,323			188,278			134,778			2,515,909			3,952,151

Total Debt	$	147,730		$	563,236		$	1,276,323		$	188,278		$	134,778		$	2,515,909		$	4,826,254

Weighted Average Floating Rate Debt		6.02	%		5.02	%		4.87	%		—			—			—			4.96	%
Weighted Average Fixed Rate Debt		7.86	%		6.61	%		6.84	%		7.11	%		7.96	%		6.51	%		6.70	%

Total Weighted Average Rate		7.65	%		5.53	%		6.11	%		7.10	%		7.96	%		6.51	%		6.39	%

Unsecured Debt

Unsecured Line of Credit - Matures October 30, 2007

(in thousands)


Facility	Outstanding @12/31/2005			Letters of Credit		Remaining Capacity @12/31/2005
$ 605,000	$	58,000	(1)	$	8,536	$	313,464	(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	31.68	%	5.92	%	7.7 years
Secured Debt	68.32	%	6.60	%	3.8 years

Total Debt	100.00	%	6.39	%	5.0 years

*Floating and Fixed Rate Debt Analysis*

	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	18.11	%	4.96	%	2.1 years
Fixed Rate Debt	81.89	%	6.70	%	5.7 years

Total Debt	100.00	%	6.39	%	5.0 years

Interest Rate Hedging Instruments (2)

Notional

Amount

Weighted

Average

Treasury
Rate

Effective

Date

Maturity

Date

Forward-starting interest rate swaps

500,000

4.34

2/1/2007

2/1/2017

(2)	The Company has entered into a series of interest rate hedges to lock in the 10-year treasury rate and 10-year swap spread in contemplation of obtaining long-term fixed rate financing to finance or refinance properties in the Company’s existing portfolio.

Boston Properties, Inc.

Fourth Quarter 2005

DEBT MATURITIES AND PRINCIPAL PAYMENTS

(in thousands)


Property	2006			2007			2008			2009			2010			Thereafter			Total
Citigroup Center	$	7,145		$	7,676		$	8,246		$	8,858		$	9,516		$	456,632		$	498,073
Times Square Tower		—			—			475,000			—			—			—			475,000
Embarcadero Center One and Two		5,496			5,877			278,912			—			—			—			290,285
Prudential Center		5,256			5,619			259,706			—			—			—			270,581
280 Park Avenue		3,519			3,798			4,099			4,423			4,773			235,499			256,111
599 Lexington Avenue		—			225,000	(1)					—			—			—			225,000
Embarcadero Center Four		4,061			4,346			129,712			—			—			—			138,119
Embarcadero Center Three		2,671			132,726			—			—			—			—			135,397
Cambridge Center Seven		—			98,859			—			—			—			—			98,859
Democracy Center		2,257			2,421			2,597			91,132			—			—			98,407
One Freedom Square		2,005			2,122			2,245			2,375			2,513			68,753			80,013
Capital Gallery		67,895	(2)		—			—			—			—			—			67,895
New Dominion Technology Park, Building Two		—			—			—			—			—			63,000			63,000
140 Kendrick Street		1,387			1,466			1,549			1,637			1,730			52,119			59,888
202, 206 & 214 Carnegie Center		780			845			916			994			56,306			—			59,841
1330 Connecticut Avenue		2,238			2,346			2,452			2,577			2,701			45,021			57,335
New Dominion Technology Park, Building One		1,284			1,379			1,481			1,594			1,715			49,249			56,702
Reservoir Place		1,564			1,572			1,666			48,592			—			—			53,394
504, 506 & 508 Carnegie Center		1,222			1,314			40,914			—			—			—			43,450
10 & 20 Burlington Mall Rd & 91 Hartwell		802			861			925			994			1,069			32,524			37,175
10 Cambridge Center		715			777			844			916			29,677			—			32,929
Sumner Square		599			645			694			747			804			24,691			28,180
1301 New York Avenue		1,531			1,651			1,781			21,628			—			—			26,591
Eight Cambridge Center		648			702			757			819			22,911			—			25,837
510 Carnegie Center		683			735			23,519			—			—			—			24,937
University Place		806			864			925			992			1,063			17,359			22,009
Reston Corporate Center		697			745			20,524			—			—			—			21,966
Bedford Business Park		818			890			16,859			—			—			—			18,567
191 Spring Street		18,267			—			—			—			—			—			18,267
Montvale Center		6,762			—			—			—			—			—			6,762
101 Carnegie Center		6,622			—			—			—			—			—			6,622

		147,730			505,236			1,276,323			188,278			134,778			1,044,847			3,297,192

Unsecured Senior Notes		—			—			—			—			—			1,471,062			1,471,062
Unsecured Line of Credit		—			58,000			—			—			—			—			58,000

	$	147,730		$	563,236		$	1,276,323		$	188,278		$	134,778		$	2,515,909		$	4,826,254

% of Total Debt		3.06	%		11.67	%		26.45	%		3.90	%		2.79	%		52.13	%		100.00	%
Balloon Payments	$	97,731		$	514,585		$	1,234,782		$	158,698		$	107,339		$	2,454,874		$	4,568,009
Scheduled Amortization	$	49,999		$	48,651		$	41,541		$	29,580		$	27,439		$	61,035		$	258,245

(1)	In July 2005, the Company refinanced the debt on the property through a secured draw on the Company’s revolving line of credit facility. The facility expires on October 30, 2007.

(2)

Amount includes construction financing for the expansion of the property of $17.2 million, which matures in February 2008, and existing mortgage financing of $50.7 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.

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


	December 31, 2005
Total Assets:
Capitalized Property Value	$	11,120,105
Cash and Cash Equivalents		261,496
Undeveloped Land, at Cost		204,044
Development in Process, at Cost (including Joint Venture %)		209,376

Total Assets	$	11,795,021

Unencumbered Assets	$	5,197,847

Secured Debt (Fixed and Variable) (1)	$	3,276,343
Joint Venture Debt		212,210
Contingent Liabilities & Letters of Credit		14,331
Unsecured Debt (2)		1,533,000

Total Outstanding Debt	$	5,035,884

Consolidated EBITDA:
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)	$	83,694
Add: Interest Expense (per Consolidated Income Statement)		74,804
Add: Depreciation and Amortization (per Consolidated Income Statement)		66,290

EBITDA		224,788
Add: Company share of unconsolidated joint venture EBITDA		6,511

Consolidated EBITDA	$	231,299

Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement)	$	74,804
Add: Company share of unconsolidated joint venture interest expense		3,330
Less: Amortization of financing costs		(1,264	)
Less: Interest expense funded by construction loan draws		(173	)

Adjusted Interest Expense	$	76,697


Covenant Ratios and Related Data	Test	Actual
Total Outstanding Debt/Total Assets	Less than 60%		42.7	%
Secured Debt/Total Assets	Less than 50%		29.6	%
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x		3.02
Unencumbered Assets/ Unsecured Debt	Greater than 150%		339.1	%

Unencumbered Consolidated EBITDA		$	99,286

Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)			4.43

% of unencumbered Consolidated EBITDA to Consolidated EBITDA			42.9	%

# of unencumbered properties			69

(1)	Excludes Fair Value Adjustment of $20,849.

(2)	Excludes Debt Discount of $3,938.

Boston Properties, Inc.

Fourth Quarter 2005

UNCONSOLIDATED JOINT VENTURES

Balance Sheet Information

(unaudited and in thousands)

as of December 31, 2005


	Market Square North			Metropolitan Square			265 Franklin Street			901 New York Avenue			801 New Jersey Avenue (1)(2)			Wisconsin Place (1)(3)			505 9th Street (1)			Value- Added Fund (4)			Combined
Total Equity (5)	$	7,746		$	32,671		$	20,584		$	1,496		$	—		$	2,541		$	19,514		$	5,655		$	90,207

Mortgage/Construction loans payable (5)	$	46,057		$	67,529		$	20,850		$	42,500		$	—		$	14,105		$	5,044		$	16,125		$	212,210

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 December 31, 2005


	Market Square North		Metropolitan Square		265 Franklin Street			901 New York Avenue			801 New Jersey Avenue (1)(2)		Wisconsin Place (1)(3)		505 9th Street (1)		Value- Added Fund (4)			Combined
REVENUE
Total revenue	$	5,210	$	7,439	$	2,885		$	7,287		$	47	$	—	$	—	$	2,027		$	24,895	(6)

EXPENSES
Operating		1,700		2,422		1,218			2,182			16		—		—		709			8,247

SUBTOTAL		3,510		5,017		1,667			5,105			31		—		—		1,318			16,648
Interest		1,786		2,727		833			2,230			—		—		—		790			8,366
Depreciation and amortization		1,253		1,336		1,155			1,235			—		—		—		687			5,666

NET INCOME/(LOSS)	$	471	$	954	$	(321	)	$	1,640		$	31	$	—	$	—	$	(159	)	$	2,616

BXP’s share of net income/(loss)	$	235	$	487	$	(112	)	$	885	(7)	$	75	$	—	$	—	$	(40	)	$	1,530
BXP’s share of depreciation & amortization		628		681		404			289			—		—		—		172			2,174

BXP’s share of Funds from Operations (FFO)	$	863	$	1,168	$	292		$	1,174		$	75	$	—	$	—	$	132		$	3,704

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

(2)	On December 9, 2005 the Company withdrew from the joint venture entity and its initial investment was returned.

(3)

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.

(4)	For additional information on the Value-Added Fund, see page 19. Information presented includes costs which relate to the organization and operations of the Value-Added Fund.

(5)	Represents the Company’s share.

(6)	The net impact of the straight-line rent adjustment increased revenue by $1.8 million for the three months ended December 31, 2005.

(7)	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.

Fourth Quarter 2005

UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments by Property

(in thousands)


Property	2006			2007			2008			2009			2010			Thereafter			Total
Metropolitan Square (51%)*	$	901		$	978		$	1,061		$	1,152		$	63,437		$	—		$	67,529
Market Square North (50%)*		1,001			1,081			1,167			1,260			41,548			—			46,057
901 New York Avenue (25%)*		—			—			554			635			669			40,642			42,500
265 Franklin Street (35%)*		—			20,850			—			—			—			—			20,850	(1)
Wisconsin Place (23.89%)*		1,749			1,828			1,785			8,743			—			—			14,105	(2)
505 9th Street (50%)*		—			—			—			—			—			5,044			5,044	(3)

	$	3,651		$	24,737		$	4,567		$	11,790		$	105,654		$	45,686		$	196,085

Weighted Average Rate (2)		7.95	%		5.64	%		7.40	%		6.04	%		8.00	%		5.25	%		6.93	%
% of Total Debt		1.86	%		12.62	%		2.33	%		6.01	%		53.88	%		23.30	%		100.00	%

Floating and Fixed Rate Debt Analysis


	% of Total Debt		Weighted Average Rate		Weighted Average Maturity
Floating Rate Debt	18.76	%	5.47	%	2.2 years
Fixed Rate Debt	81.24	%	7.22	%	5.9 years

Total Debt	100.00	%	6.93	%	5.3 years

(*)	All amounts represent the Company’s share. Amounts exclude the Value-Added Fund, see page 19 for additional information on debt pertaining to the Value-Added Fund.

(1)	The loan facility allows the venture to borrow an additional $10.4 million (of which the Company’s share is $3.7 million).

(2)	Approximately $8.7 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.

(3)

Amount represents construction financing comprised of a $60.0 million loan commitment (of which the Company’s share is $30.0 million) which bears interest at a fixed rate of 5.73% per annum and a $35.0 million loan commitment (of which the company’s share is $17.5 million) which bears interest at a variable rate of LIBOR plus 1.25% per annum. The financing converts to a ten-year fixed rate loan in October 2007 at an interest rate of 5.73% per annum with a provision for an increase in the borrowing capacity by $35.0 million (of which the Company’s share would be $17.5 million). The conversion is subject to conditions which the Company expects to satisfy.

Boston Properties, Inc.

Fourth 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 Notes Payable (1)
Worldgate Plaza, Herndon, VA	4	322,328	75.0	%	$	31.94	$	14,250	(2)
300 Billerica Road, Chelmsford, MA	1	110,882	100.0	%	$	5.50	$	1,875	(3)

Results of Operations

(unaudited and in thousands)

for the three months ended December 31, 2005


	Value-Added Fund
REVENUE
Total revenue (4)	$	2,027

EXPENSES
Operating		709

SUBTOTAL		1,318
Interest		790
Depreciation and amortization		687

NET LOSS	$	(159	)

BXP’s share of net loss	$	(40	)
BXP’s share of depreciation & amortization		172

BXP’s share of Funds from Operations (FFO)	$	132

The Company’s Equity in the Value-Added Fund	$	5,655

(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 December 31, 2005, the interest rate was 5.21% per annum.

(3)	The mortgage bears interest at a fixed rate of 5.69% and matures on January 1, 2016.

(4)	The net impact of the straight-line rent adjustment and fair value lease revenue (SFAS 141) increased (decreased) revenue by approximately $80 and ($139), respectively for the three months ended December 31, 2005.

Boston Properties, Inc.

Fourth 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 December 31, 2005 ^{(1) (2)}


Geographic Area	Square Feet Office (3)		% of NOI Office (4)		Square Feet Office/ Technical		% of NOI Office/ Technical (4)		Square Feet Total		Square Feet % of Total		% of NOI Hotel (4)		% of NOI Total (4)
Greater Boston	8,049,759	(5)	20.6	%	545,206		0.7	%	8,594,965		27.8	%	2.6	%	23.9	%
Greater Washington	7,281,462	(6)	16.6	%	858,583		1.4	%	8,140,045		26.3	%	—		18.0	%
Greater San Francisco	4,064,996		13.7	%	—		—		4,064,996		13.2	%	—		13.7	%
Midtown Manhattan	7,791,286		40.5	%	—		—		7,791,286		25.2	%	—		40.5	%
Princeton/East Brunswick, NJ	2,319,229		3.9	%	—		—		2,319,229		7.5	%	—		3.9	%

	29,506,732		95.3	%	1,403,789		2.1	%	30,910,521		100.0	%	2.6	%	100.0	%

% of Total	95.5	%			4.5	%			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	17.0	%	7.0	%	24.0	%
Greater Washington	5.3	%	12.6	%	17.9	%
Greater San Francisco	12.2	%	1.5	%	13.7	%
Midtown Manhattan	40.5	%	—		40.5	%
Princeton/East Brunswick, NJ	—		3.9	%	3.9	%

Total	75.0	%	25.0	%	100.0	%

Hotel Properties (7)


Hotel Properties	Number of Rooms	Square Feet
Long Wharf Marriott, Boston, MA	402	420,000
Cambridge Center Marriott, Cambridge, MA	431	330,400

Total Hotel Properties	833	750,400

Structured Parking


	Number of Spaces	Square Feet
Total Structured Parking	30,152	9,297,705

(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 347,381 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 539,229 square feet at 901 New York Avenue which is 25% owned by Boston Properties.

(7)	Excludes the Residence Inn by Marriott^® due to its sale on November 4, 2005.

Boston Properties, Inc.

Fourth Quarter 2005

In-Service Property Listing

as of December 31, 2005


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Boston
Office
800 Boylston Street - The Prudential Center	CBD Boston MA	1	1,183,438	82.4	%	$	36.72	Y	CBD
111 Huntington Avenue - The Prudential Center	CBD Boston MA	1	854,936	100.0	%		49.75	N	CBD
101 Huntington Avenue - The Prudential Center	CBD Boston MA	1	505,939	86.3	%		35.60	Y	CBD
The Shops at the Prudential Center	CBD Boston MA	1	511,924	89.6	%		63.97	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	347,381	72.4	%		44.82	Y	CBD
One Cambridge Center	East Cambridge MA	1	215,385	67.1	%		36.40	N	CBD
Three Cambridge Center	East Cambridge MA	1	108,152	87.0	%		26.63	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	%		36.08	Y	CBD
Eleven Cambridge Center	East Cambridge MA	1	79,322	100.0	%		42.51	N	CBD
University Place	Mid-Cambridge MA	1	196,007	99.6	%		35.82	Y	CBD
Reservoir Place	Route 128 Mass Turnpike MA	1	526,998	85.5	%		27.91	Y	S
Reservoir Place North	Route 128 Mass Turnpike MA	1	73,258	100.0	%		25.16	N	S
140 Kendrick Street	Route 128 Mass Turnpike MA	3	380,987	100.0	%		29.26	Y	S
(2) Prospect Place	Route 128 Mass Turnpike MA	1	297,402	66.5	%		26.03	N	S
Waltham Office Center	Route 128 Mass Turnpike MA	3	129,041	82.3	%		26.80	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	98.0	%		35.62	N	S
Waltham Weston Corporate Center	Route 128 Mass Turnpike MA	1	306,789	96.1	%		31.47	N	S
10 & 20 Burlington Mall Road	Route 128 Northwest MA	2	153,048	86.0	%		20.00	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	121,425	90.9	%		22.76	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	97.0	%		22.76	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	53,652	58.9	%		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	%		26.65	N	S
Quorum Office Park	Route 128 Northwest MA	2	259,918	100.0	%		21.35	N	S
Newport Office Park	Route 128 South MA	1	170,013	100.0	%		22.15	N	S

		41	8,049,759	89.2	%	$	35.97

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	%		11.82	N	S

		5	545,206	100.0	%	$	16.15

	Total Greater Boston:	46	8,594,965	89.9	%	$	34.57

Boston Properties, Inc.

Fourth Quarter 2005

In-Service Property Listing (continued)

as of December 31, 2005


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Greater Washington, DC
Office
(2) Capital Gallery	Southwest Washington DC	1	301,879	100.0	%	$	40.07	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	99.9	%		42.80	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	%		49.41	Y	CBD
(2) 901 New York Avenue (25% ownership)	CBD Washington DC	1	539,229	96.3	%		44.91	Y	CBD
1333 New Hampshire Avenue	CBD Washington DC	1	315,371	100.0	%		42.18	N	CBD
1330 Connecticut Avenue	CBD Washington DC	1	252,136	100.0	%		48.78	Y	CBD
Sumner Square	CBD Washington DC	1	207,620	100.0	%		39.16	Y	CBD
Democracy Center	Montgomery County MD	3	682,827	78.3	%		31.79	Y	S
Montvale Center	Montgomery County MD	1	122,687	84.8	%		24.21	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	%		33.59	Y	S
Two Freedom Square	Fairfax County VA	1	421,676	100.0	%		37.10	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	%		29.52	N	S
One and Two Discovery Square	Fairfax County VA	2	367,018	100.0	%		37.59	N	S
New Dominion Technology Park - Building One	Fairfax County VA	1	235,201	100.0	%		31.84	Y	S
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	7,281,462	97.3	%	$	36.60

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	%		18.52	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	%		20.62	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	%		16.48	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	%		14.31	N	S
7375 Boston Boulevard	Fairfax County VA	1	26,865	100.0	%		19.49	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	%	$	18.23

	Total Greater Washington:	41	8,140,045	97.2	%	$	34.69

Boston Properties, Inc.

Fourth Quarter 2005

In-Service Property Listing (continued)

as of December 31, 2005


	Sub Market	Number of Buildings	Square Feet	Leased %		Annualized Revenue Per Leased SF		Encumbered with secured debt (Y/N)	Central Business District (CBD) or Suburban (S)
Midtown Manhattan
Office
599 Lexington Avenue	Park Avenue NY	1	1,016,218	100.0	%	$	66.92	Y(3)	CBD
280 Park Avenue	Park Avenue NY	1	1,179,064	100.0	%		59.76	Y	CBD
Citigroup Center	Park Avenue NY	1	1,569,022	96.6	%		63.98	Y	CBD
399 Park Avenue	Park Avenue NY	1	1,686,495	100.0	%		73.22	N	CBD
Times Square Tower	Times Square NY	1	1,238,708	93.8	%		59.96	Y	CBD
5 Times Square	Times Square NY	1	1,101,779	100.0	%		53.49	N	CBD

	Total Midtown Manhattan:	6	7,791,286	98.3	%	$	63.64

Princeton/East Brunswick, NJ
Office
101 Carnegie Center	Princeton NJ	1	123,659	100.0	%	$	24.83	Y	S
104 Carnegie Center	Princeton NJ	1	102,830	51.5	%		31.27	N	S
105 Carnegie Center	Princeton NJ	1	70,029	84.8	%		28.04	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	%		29.44	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	%		30.22	N	S
211 Carnegie Center	Princeton NJ	1	47,025	100.0	%		29.34	N	S
212 Carnegie Center	Princeton NJ	1	149,398	100.0	%		33.16	N	S
214 Carnegie Center	Princeton NJ	1	150,774	76.8	%		29.54	Y	S
302 Carnegie Center	Princeton NJ	1	64,726	100.0	%		34.07	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	%		36.75	N	S

	Total Princeton/East Brunswick, NJ:	16	2,319,229	86.9	%	$	31.27

Greater San Francisco
Office
Embarcadero Center One	CBD San Francisco CA	1	826,034	89.7	%	$	42.50	Y	CBD
Embarcadero Center Two	CBD San Francisco CA	1	770,822	86.2	%		44.56	Y	CBD
Embarcadero Center Three	CBD San Francisco CA	1	767,667	91.3	%		37.52	Y	CBD
Embarcadero Center Four	CBD San Francisco CA	1	938,165	96.1	%		60.74	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	506,006	84.7	%		29.36	N	S

	Total Greater San Francisco:	7	4,064,996	90.8	%	$	43.88

	Total In-Service Properties:	116	30,910,521	93.8	%	$	43.24

(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.

Fourth 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)	5.42	%
2	Citibank NA	1,116,094		3.61	%
3	Ernst & Young	1,064,939		3.45	%
4	Shearman & Sterling	585,808		1.90	%
5	Lockheed Martin	566,375		1.83	%
6	Genentech	528,218		1.71	%
7	Procter & Gamble	484,051		1.57	%
8	Lehman Brothers	436,723		1.41	%
9	Kirkland & Ellis	416,547	(2)	1.35	%
10	Parametric Technology	380,987		1.23	%
11	Washington Group International	365,245		1.18	%
12	Finnegan Henderson Farabow	349,146	(3)	1.13	%
13	Orbital Sciences	337,228		1.09	%
14	Deutsche Bank Trust	336,137		1.09	%
15	Northrop Grumman	327,677		1.06	%
16	Ann Taylor	318,567		1.03	%
17	Bingham McCutchen	291,415		0.94	%
18	Akin Gump Strauss Hauer & Feld	290,132		0.94	%
19	O’Melveny & Myers	268,733		0.87	%
20	Accenture	263,878		0.85	%
	Total % of Portfolio Square Feet			33.66	%
	Total % of Portfolio Revenue			36.76	%

Major Future Signed Deals


Tenant	Property	Sq. Ft.
DLA Piper Rudnick Gray Cary US LLP	505 9th Street	231,748	(4)(5)
Massachusetts Institute of Technology	Seven Cambridge Center	231,028	(4)
Lockheed Martin Corporation	12290 Sunrise Valley	182,000	(4)
Smithsonian Institute	Capital Gallery Expansion	168,949	(4)
HMS Host	Democracy Center	139,228

(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.

(5)	Boston Properties has a 50% interest in this property.

TENANT DIVERSIFICATION (GROSS RENT) *

LOGO

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

Boston Properties, Inc.

Fourth Quarter 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
2006	1,263,309	$	54,394,186	$	43.06	$	55,599,464	$	44.01	4.48	%
2007	2,016,093		76,544,019		37.97		77,211,324		38.30	7.15	%
2008	1,696,505		70,667,327		41.65		72,548,516		42.76	6.02	%
2009	2,738,015		103,872,967		37.94		109,734,484		40.08	9.71	%
2010	2,118,226		91,458,318		43.18		96,502,674		45.56	7.51	%
2011	2,691,374		118,469,864		44.02		130,178,168		48.37	9.54	%
2012	2,550,037		119,398,697		46.82		127,931,619		50.17	9.04	%
2013	567,061		21,624,494		38.13		24,035,638		42.39	2.01	%
2014	1,796,905		67,582,160		37.61		73,484,575		40.90	6.37	%
2015	1,569,591		54,851,700		34.95		65,704,000		41.86	5.57	%
Thereafter	7,462,307		389,569,849		52.21		473,510,350		63.45	26.46	%

Occupancy By Location*


	CBD				Suburban				Total
Location	31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04
Midtown Manhattan	98.3	%	96.4	%	n/a		n/a		98.3	%	96.4	%
Greater Boston	88.3	%	93.9	%	90.3	%	87.8	%	89.2	%	91.2	%
Greater Washington	99.1	%	99.9	%	96.0	%	97.2	%	97.3	%	98.2	%
Greater San Francisco	91.1	%	82.4	%	89.8	%	69.8	%	90.8	%	80.3	%
Princeton/East Brunswick, NJ	n/a		n/a		86.9	%	90.2	%	86.9	%	90.2	%
Richmond, VA	n/a		91.3	%	n/a		n/a		n/a		91.3	%
Baltimore, MD	n/a		90.9	%	n/a		n/a		n/a		90.9	%

Total Portfolio	94.8	%	93.2	%	91.7	%	90.7	%	93.7	%	92.3	%

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

Boston Properties, Inc.

Fourth 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
2006	300,512	$	4,356,529	$	14.50	$	4,356,529	$	14.50	21.41	%
2007	321,900		5,970,537		18.55		6,043,388		18.77	22.93	%
2008	70,440		1,342,145		19.05		1,440,522		20.45	5.02	%
2009	45,508		981,690		21.57		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	5.70	%
2014	274,821		4,913,303		17.88		5,642,822		20.53	19.58	%
2015	—		—		—		—		—	0.00	%
Thereafter	—		—		—		—		—	—

Occupancy By Location

CBD

Suburban

Total

Location

31-Dec-05

31-Dec-04

31-Dec-05

31-Dec-04

31-Dec-05

31-Dec-04

Midtown Manhattan

n/a

Greater Boston

100.0

Greater Washington

n/a

96.1

Greater San Francisco

n/a

Princeton/East Brunswick, NJ

n/a

Richmond, VA

n/a

Baltimore, MD

n/a

Total Portfolio

100.0

97.5

97.6

Boston Properties, Inc.

Fourth 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
2006	47,748	$	3,924,118	$	82.18	(1)	$	3,648,598	$	76.41	(1)	3.79	%
2007	44,097		2,833,018		64.25			2,880,083		65.31		3.50	%
2008	65,367		3,736,993		57.17			3,803,946		58.19		5.19	%
2009	70,346		3,275,594		46.56			3,379,233		48.04		5.58	%
2010	103,224		3,777,941		36.60			3,947,171		38.24		8.19	%
2011	57,868		3,592,753		62.09			3,968,693		68.58		4.59	%
2012	97,490		4,908,223		50.35			5,340,765		54.78		7.73	%
2013	60,230		5,487,078		91.10			5,955,666		98.88		4.78	%
2014	61,963		4,489,101		72.45			5,159,385		83.27		4.92	%
2015	92,275		7,763,919		84.14			8,534,764		92.49		7.32	%
Thereafter	559,823		27,986,410		49.99			34,548,357		61.71		44.42	%

(1)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $45.08 and $42.44 in 2006.

Boston Properties, Inc.

Fourth 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
2006	1,611,569	$	63,359,098	$	39.32	$	63,604,591	$	39.47	5.2	%
2007	2,382,090		85,347,574		35.83		86,134,795		36.16	7.7	%
2008	1,832,312		75,746,465		41.34		77,792,985		42.46	5.9	%
2009	2,853,869		108,130,251		37.89		114,136,609		39.99	9.2	%
2010	2,353,960		97,259,692		41.32		102,559,990		43.57	7.6	%
2011	2,806,563		122,940,014		43.80		135,024,258		48.11	9.1	%
2012	2,719,889		125,955,866		46.31		135,087,894		49.67	8.8	%
2013	707,291		28,771,422		40.68		31,555,154		44.61	2.3	%
2014	2,133,689		76,984,564		36.08		84,286,781		39.50	6.9	%
2015	1,661,866		62,615,619		37.68		74,238,764		44.67	5.4	%
Thereafter	8,022,130		417,556,259		52.05		508,058,707		63.33	26.0	%

Occupancy By Location


	CBD				Suburban				Total
Location	31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04
Midtown Manhattan	98.3	%	96.4	%	n/a		—		98.3	%	96.4	%
Greater Boston	88.5	%	94.0	%	91.4	%	85.9	%	89.9	%	90.2	%
Greater Washington	99.1	%	99.9	%	96.0	%	97.0	%	97.2	%	97.9	%
Greater San Francisco	91.1	%	82.4	%	89.8	%	69.8	%	90.8	%	80.3	%
Princeton/East Brunswick, NJ	n/a		—		86.9	%	90.2	%	86.9	%	90.2	%
Richmond, VA	n/a		91.3	%	n/a		—		n/a		91.3	%
Baltimore, MD	n/a		90.9	%	n/a		—		n/a		90.9	%

Total Portfolio	94.8	%	93.2	%	92.4	%	90.4	%	93.8	%	92.1	%

Boston Properties, Inc.

Fourth 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
2006	405,384	$	13,753,885	$	33.93	$	13,968,768	$	34.46	253,704	$	3,515,158	$	13.86	$	3,515,158	$	13.86
2007	631,186		21,786,913		34.52		22,086,984		34.99	144,140		2,145,060		14.88		2,207,130		15.31
2008	648,299		19,592,977		30.22		20,243,341		31.23	—		—		—		—		—
2009	1,290,679		44,556,741		34.52		48,091,012		37.26	—		—		—		—		—
2010	420,716		12,629,941		30.02		13,331,833		31.69	—		—		—		—		—
2011	1,008,581		38,927,414		38.60		43,239,121		42.87	—		—		—		—		—
2012	719,105		25,833,088		35.92		27,754,678		38.60	72,362		1,648,945		22.79		1,815,509		25.09
2013	276,618		12,157,580		43.95		13,263,946		47.95	80,000		1,659,850		20.75		1,563,850		19.55
2014	515,436		17,572,366		34.09		18,954,196		36.77	—		—		—		—		—
2015	201,956		7,803,987		38.64		8,432,532		41.75	—		—		—		—		—
Thereafter	431,250		14,792,539		34.30		19,290,786		44.73	—		—		—		—		—

	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
2006	—	$	—	$	—	$	—	$	—	10,011	$	2,265,294	$	226.28	$	2,061,774	$	205.95	(1)
2007	—		—		—		—		—	15,228		1,345,961		88.39		1,345,961		88.39	(1)
2008	—		—		—		—		—	6,009		922,185		153.47		920,913		153.26
2009	—		—		—		—		—	13,111		1,186,064		90.46		1,202,176		91.69
2010	—		—		—		—		—	41,532		787,101		18.95		787,101		18.95
2011	—		—		—		—		—	15,047		993,326		66.01		1,035,611		68.83
2012	—		—		—		—		—	52,949		2,058,915		38.88		2,103,119		39.72
2013	—		—		—		—		—	23,705		2,903,922		122.50		3,040,851		128.28
2014	—		—		—		—		—	19,902		2,087,605		104.89		2,247,150		112.91
2015	—		—		—		—		—	43,651		5,625,383		128.87		6,017,103		137.85
Thereafter	—		—		—		—		—	392,579		14,415,756		36.72		16,468,987		41.95

(1)	Excluding kiosks with zero square feet at the Prudential Center, current and future expiring rents would be $49.31 and $43.90 in 2006 and $84.13 and $84.13 in 2007.

Boston Properties, Inc.

Fourth 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 2006	19,128	$	424,781	$	22.21	$	424,781	$	22.21	—	$	—	$	—	$	—	$	—
Q2 2006	86,307		4,079,305		47.17		4,071,305		47.17	—		—		—		—		—
Q3 2006	206,558		6,158,928		29.82		6,345,775		30.72	253,704		3,515,158		13.86		3,515,158		13.86
Q4 2006	93,391		3,098,872		33.18		3,126,907		33.48	—		—		—		—		—

Total 2006	405,384	$	13,753,885	$	33.93	$	13,968,768	$	34.46	253,704		3,515,158		13.86		3,515,158		13.86

Q1 2007	118,512	$	3,718,399	$	31.38	$	3,726,778	$	31.45	—	$	—	$	—	$	—	$	—
Q2 2007	163,125		5,958,908		36.53		5,987,689		36.71	—		—		—		—		—
Q3 2007	73,714		3,248,961		44.08		3,249,582		44.08	144,140		2,145,060		14.88		2,207,130		15.31
Q4 2007	275,835		8,860,646		32.12		9,122,936		33.07	—		—		—		—		—

Total 2007	631,186	$	21,786,913	$	34.52	$	22,086,984	$	34.99	144,140		2,145,060		14.88		2,207,130		15.31


	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
Q1 2006	—	$	—	$	—	$	—	$	—	101	$	132,996	$	1,316.79	$	78,996	$	782.14
Q2 2006	—		—		—		—		—	5,498		1,033,293		187.94		853,497		155.24
Q3 2006	—		—		—		—		—	4		235,008		58,752.00		211,008		52,752.00
Q4 2006	—		—		—		—		—	4,408		863,997		196.01		918,273		208.32

Total 2006	—		—	$	—	$	—	$	—	10,011	$	2,265,294	$	226.28	$	2,061,774	$	205.95	(1)

Q1 2007	—	$	—	$	—		—	$	—	13,533	$	1,090,416	$	80.57	$	1,090,416	$	80.57
Q2 2007	—		—		—		—		—	1,694		225,545		133.14		225,545		133.14
Q3 2007	—		—		—		—		—	—		—		—		—		—
Q4 2007	—		—		—		—		—	1		30,000		30,000.00		30,000		30,000.00

Total 2007	—	$	—	$	—	$	—	$	—	15,228	$	1,345,961	$	88.39	$	1,345,961	$	88.39	(1)

(1)	Excluding kiosks with one square foot at the Prudential Center, current and future expiring rents would be $49.31 and $43.90 in 2006 and $84.13 and $84.13 in 2007.

Boston Properties, Inc.

Fourth 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
2006	135,443	$	4,646,908	$	34.31	$	4,654,917	$	34.37	46,808	$	841,371	$	17.97	$	841,371	$	17.97
2007	372,481		12,996,566		34.89		13,119,896		35.22	177,760		3,825,477		21.52		3,836,258		21.58
2008	213,585		7,186,450		33.65		7,603,937		35.60	70,440		1,342,145		19.05		1,440,522		20.45
2009	886,595		31,929,221		36.01		33,264,819		37.52	45,508		981,690		21.57		1,022,892		22.48
2010	949,561		36,361,630		38.29		39,621,300		41.73	132,510		2,023,433		15.27		2,110,145		15.92
2011	737,119		25,262,555		34.27		28,448,523		38.59	57,321		877,397		15.31		877,397		15.31
2012	714,212		26,550,223		37.17		30,640,416		42.90	—		—		—		—		—
2013	59,801		1,687,965		28.23		2,001,579		33.47	—		—		—		—		—
2014	426,087		15,454,546		36.27		18,547,699		43.53	274,821		4,913,303		17.88		5,642,822		20.53
2015	797,080		27,966,758		35.09		34,568,666		43.37	—		—		—		—		—
Thereafter	1,633,061		65,598,827		40.17		79,780,202		48.85	—		—		—		—		—

	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
2006	—	$	—	$	—	$	—	$	—	8,199	$	349,619	$	42.64	$	349,619	$	42.64
2007	—		—		—		—		—	12,610		382,772		30.35		392,096		31.09
2008	—		—		—		—		—	18,152		747,005		41.15		767,884		42.30
2009	—		—		—		—		—	26,550		731,196		27.54		789,146		29.72
2010	—		—		—		—		—	18,994		722,896		38.06		785,335		41.35
2011	—		—		—		—		—	11,221		484,181		43.15		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
2015	—		—		—		—		—	17,701		672,709		38.00		846,974		47.85
Thereafter	—		—		—		—		—	28,570		926,480		32.43		1,437,106		50.30

Boston Properties, Inc.

Fourth 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 2006	65,170	$	2,327,307	$	35.71	$	2,327,307	$	35.71	—	$	—	$	—	$	—	$	—
Q2 2006	42,564		1,498,633		35.21		1,498,633		35.21	—		—		—		—		—
Q3 2006	8,637		336,610		38.97		339,412		39.30	33,400		579,671		17.36		579,671		17.36
Q4 2006	19,072		484,359		25.40		489,565		25.67	13,408		261,700		19.52		261,700		19.52

Total 2006	135,443	$	4,646,908	$	34.31	$	4,654,917	$	34.37	46,808	$	841,371	$	17.97	$	841,371	$	17.97

Q1 2007	48,233	$	1,643,242	$	34.07	$	1,666,188	$	34.54	—	$	—	$	—	$	—	$	—
Q2 2007	49,023		1,896,130		38.68		1,940,441		39.58	14,338		219,126		15.28		222,710		15.53
Q3 2007	253,246		8,703,734		34.37		8,731,046		34.48	52,050		1,073,679		20.63		1,073,679		20.63
Q4 2007	21,979		753,461		34.28		782,220		35.59	111,372		2,532,672		22.74		2,539,869		22.81

Total 2007	372,481	$	12,996,566	$	34.89	$	13,119,896	$	35.22	177,760	$	3,825,477	$	21.52	$	3,836,258	$	21.58


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	1,084	$	54,759	$	50.52	$	54,759	$	50.52
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	—	$	—	$	—		—	$	—	8,199		349,619	$	42.64		349,619	$	42.64

Q1 2007	—	$	—	$	—	$	—	$	—	752	$	25,514	$	33.93	$	26,122	$	34.74
Q2 2007	—		—		—		—		—	7,393		125,846		17.02		130,365		17.63
Q3 2007	—		—		—		—		—	—		—		—		—		—
Q4 2007	—		—		—		—		—	4,465		231,412		51.83		235,609		52.77

Total 2007	—	$	—	$	—	$	—	$	—	12,610	$	382,772	$	30.35		392,096	$	31.09

Boston Properties, Inc.

Fourth 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
2006	532,180	$	25,684,936	$	48.26	$	25,897,478	$	48.66	—	$	—	$	—	$	—	$	—
2007	359,150		16,680,020		46.44		16,714,808		46.54	—		—		—		—		—
2008	303,384		11,365,191		37.46		11,603,959		38.25	—		—		—		—		—
2009	138,586		6,731,706		48.57		6,472,689		46.71	—		—		—		—		—
2010	199,531		11,473,420		57.50		12,074,338		60.51	—		—		—		—		—
2011	216,297		18,875,422		87.27		19,163,287		88.60	—		—		—		—		—
2012	122,574		5,129,636		41.85		5,615,651		45.81	—		—		—		—		—
2013	92,465		3,480,686		37.64		3,932,224		42.53	—		—		—		—		—
2014	371,721		11,900,967		32.02		13,551,192		36.46	—		—		—		—		—
2015	347,570		10,923,723		31.43		13,394,196		38.54	—		—		—		—		—
Thereafter	813,358		32,058,836		39.42		37,993,880		46.71	—		—		—		—		—

	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
2006	—	$	—	$	—	$	—	$	—	16,494	$	755,743	$	45.82	$	683,743	$	41.45
2007	—		—		—		—		—	16,259		1,104,284		67.92		1,142,026		70.24
2008	—		—		—		—		—	39,524		2,002,955		50.68		2,046,524		51.78
2009	—		—		—		—		—	30,685		1,358,334		44.27		1,387,911		45.23
2010	—		—		—		—		—	37,668		1,890,322		50.18		1,947,113		51.69
2011	—		—		—		—		—	15,125		602,557		39.84		648,039		42.85
2012	—		—		—		—		—	30,972		1,950,844		62.99		2,186,646		70.60
2013	—		—		—		—		—	8,408		579,823		68.96		627,686		74.65
2014	—		—		—		—		—	8,365		525,218		62.79		592,707		70.86
2015	—		—		—		—		—	30,923		1,465,827		47.40		1,670,687		54.03
Thereafter	—		—		—		—		—	7,128		220,022		30.87		275,808		38.69

Boston Properties, Inc.

Fourth 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 2006	190,957	$	6,622,109	$	34.68	$	6,857,213	$	35.91	—	$	—	$	—	$	—	$	—
Q2 2006	81,774		6,659,214		81.43		6,659,214		81.43	—		—		—		—		—
Q3 2006	67,525		2,864,046		42.41		2,833,210		41.96	—		—		—		—		—
Q4 2006	191,924		9,539,567		49.70		9,547,841		49.75	—		—		—		—		—

Total 2006	532,180	$	25,684,936	$	48.26	$	25,897,478	$	48.66	—		—		—		—		—

Q1 2007	69,987	$	3,129,692	$	44.72	$	3,133,457	$	44.77	—	$	—	$	—	$	—	$	—
Q2 2007	119,622		6,319,590		52.83		6,324,578		52.87	—		—		—		—		—
Q3 2007	100,605		4,370,908		43.45		4,375,256		43.49	—		—		—		—		—
Q4 2007	68,936		2,859,830		41.49		2,881,516		41.80	—		—		—		—		—

Total 2007	359,150	$	16,680,020	$	46.44	$	16,714,808	$	46.54	—		—		—		—		—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	9,054	$	443,501	$	48.98	$	371,501	$	41.03
Q2 2006	—		—		—		—		—	—		—		—		—		—
Q3 2006	—		—		—		—		—	1,314		126,725		96.44		126,725		96.44
Q4 2006	—		—		—		—		—	6,126		185,518		30.28		185,518		30.28

Total 2006	—	$	—	$	—	$	—	$	—	16,494	$	755,743	$	45.82	$	683,743	$	41.45

Q1 2007	—	$	—	$	—	$	—	$	—	2,929	$	181,312	$	61.90	$	182,932		62.46
Q2 2007	—		—		—		—		—	1,611		138,332		85.87		140,508		87.22
Q3 2007	—		—		—		—		—	9,783		658,009		67.26		684,214		69.94
Q4 2007	—		—		—		—		—	1,936		126,631		65.41		134,371		69.41

Total 2007	—		—		—		—		—	16,259	$	1,104,284	$	67.92	$	1,142,026	$	70.24

Boston Properties, Inc.

Fourth 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
2006	128,413	$	8,759,962	$	68.22	$	8,845,542	$	68.88	—	$	—	$	—	$	—	$	—
2007	128,209		8,598,012		67.06		8,604,174		67.11	—		—		—		—		—
2008	495,147		31,516,017		63.65		31,998,850		64.62	—		—		—		—		—
2009	188,038		12,789,741		68.02		13,622,426		72.45	—		—		—		—		—
2010	332,903		23,643,137		71.02		24,020,187		72.15	—		—		—		—		—
2011	426,084		25,735,348		60.40		29,116,545		68.34	—		—		—		—		—
2012	988,646		61,702,496		62.41		63,727,995		64.46	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	199,087		14,184,982		71.25		13,101,245		65.81	—		—		—		—		—
2015	68,833		4,239,064		61.58		4,619,279		67.11	—		—		—		—		—
Thereafter	4,515,287		274,897,429		60.88		333,900,020		73.95	—		—		—		—		—

	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
2006	—	$	—	$	—	$	—	$	—	13,044	$	553,462	$	42.43	$	553,462	$	42.43
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	—		—		—		—		—	6,050		731,517		120.91		858,024		141.82
2013	—		—		—		—		—	14,740		1,392,957		94.50		1,559,245		105.78
2014	—		—		—		—		—	12,943		1,349,366		104.25		1,684,759		130.17
2015	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	131,546		12,424,152		94.45		16,366,456		124.42

Boston Properties Inc.

Fourth 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 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	21,395		1,706,139		79.74		1,791,719		83.74	—		—		—		—		—
Q3 2006	30,100		1,996,452		66.33		1,996,452		66.33	—		—		—		—		—
Q4 2006	76,918		5,057,372		65.75		5,057,372		65.75	—		—		—		—		—

Total 2006	128,413	$	8,759,962	$	68.22	$	8,845,542	$	68.88	—	$	—	$	—	$	—	$	—

Q1 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—		—	$	—
Q2 2007	26,681		1,526,096		57.20		1,526,096		57.20	—		—		—		—		—
Q3 2007	61,807		4,239,550		68.59		4,245,712		68.69	—		—		—		—		—
Q4 2007	39,721		2,832,365		71.31		2,832,365		71.31	—		—		—		—		—

Total 2007	128,209	$	8,598,012	$	67.06	$	8,604,174	$	67.11	—	$	—	$	—	$	—	$	—


	INDUSTRIAL									RETAIL
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
Q1 2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2006	—		—		—		—		—	350		25,852		73.86		25,852		73.86
Q3 2006	—		—		—		—		—	—		—		—		—		—
Q4 2006	—		—		—		—		—	12,694		527,609		41.56		527,609		41.56

Total 2006	—	$	—	$	—	$	—	$	—	13,044	$	553,462	$	42.43	$	553,462	$	42.43

Q1 2007	—	$	—	$	—		—	$	—	—	$	—	$	—	$	—		—
Q2 2007	—		—		—		—		—	—		—		—		—	$	—
Q3 2007	—		—		—		—		—	—		—		—		—		—
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—

Boston Properties Inc.

Fourth 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
2006	61,889	$	2,232,759	$	36.08	$	2,232,759	$	36.08	—	$	—	$	—	$	—	$	—
2007	525,067		16,482,508		31.39		16,685,462		31.78	—		—		—		—		—
2008	36,090		1,006,692		27.89		1,098,429		30.44	—		—		—		—		—
2009	234,117		7,865,558		33.60		8,283,537		35.38	—		—		—		—		—
2010	215,515		7,350,190		34.11		7,455,016		34.59	—		—		—		—		—
2011	303,293		9,669,125		31.88		10,210,692		33.67	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	138,177		4,298,263		31.11		4,837,889		35.01	—		—		—		—		—
2014	284,574		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
2015	154,152		3,918,169		25.42		4,689,327		30.42	—		—		—		—		—
Thereafter	69,351		2,222,218		32.04		2,545,461		36.70	—		—		—		—		—

	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
2006	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
2007	—		—		—		—		—	—		—		—		—		—
2008	—		—		—		—		—	—		—		—		—		—
2009	—		—		—		—		—	—		—		—		—		—
2010	—		—		—		—		—	—		—		—		—		—
2011	—		—		—		—		—	—		—		—		—		—
2012	—		—		—		—		—	—		—		—		—		—
2013	—		—		—		—		—	—		—		—		—		—
2014	—		—		—		—		—	—		—		—		—		—
2015	—		—		—		—		—	—		—		—		—		—
Thereafter	—		—		—		—		—	—		—		—		—		—

Boston Properties Inc.

Fourth 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 2006	8,277	$	296,092	$	35.77	$	296,092	$	35.77	—	$	—	$	—	$	—	$	—
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	21,123		732,912		34.70		732,912		34.70	—		—		—		—		—

Total 2006	61,889	$	2,232,759	$	36.08	$	2,232,759	$	36.08	—	$	—	$	—	$	—	$	—

Q1 2007	14,590	$	545,402	$	37.38	$	545,402	$	37.38	—	$	—	$	—	$	—	$	—
Q2 2007	12,171		440,808		36.22		440,808		36.22	—		—		—		—		—
Q3 2007	420,946		12,683,299		30.13		12,868,171		30.57	—		—		—		—		—
Q4 2007	77,360		2,812,999		36.36		2,831,080		36.60	—		—		—		—		—

Total 2007	525,067	$	16,482,508	$	31.39	$	16,685,462	$	31.78	—	$	—	$	—	$	—	$	—


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

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

Q1 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—
Q2 2007	—		—		—		—		—	—		—		—		—		—
Q3 2007	—		—		—		—		—	—		—		—		—		—
Q4 2007	—		—		—		—		—	—		—		—		—		—

Total 2007	—	$	—	$	—	$	—	$	—	—	$	—	$	—	$	—	$	—

Boston Properties, Inc.

Fourth 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
2006	125,188	$	7,855,667	(1)	$	62.75	$	7,634,568	(1)	$	60.98	52,596	$	2,094,648	$	39.83	$	2,097,450	$	39.88
2007	156,139	$	8,222,312	(2)		52.66	$	8,251,577	(2)		52.85	275,734		9,748,853		35.36		9,799,869		35.54
2008	191,386	$	7,388,632			38.61	$	7,474,686			39.06	42,895		1,762,618		41.09		1,885,337		43.95
2009	807,391	$	29,247,891			36.23	$	32,089,065			39.74	587,317		22,373,967		38.10		23,586,066		40.16
2010	185,651	$	6,426,452			34.62	$	6,688,272			36.03	468,868		20,124,607		42.92		22,035,979		47.00
2011	534,462	$	27,712,075			51.85	$	30,966,938			57.94	199,621		8,776,668		43.97		9,787,076		49.03
2012	323,797	$	14,546,201			44.92	$	15,421,939			47.63	83,235		3,552,219		42.68		3,566,372		42.85
2013	283,939	$	14,665,834			51.65	$	15,810,826			55.68	1,702		94,199		55.35		112,525		66.11
2014	456,145	$	17,719,164			38.85	$	18,963,244			41.57	63,796		3,113,908		48.81		3,802,176		59.60
2015	230,936	$	13,142,752			56.91	$	14,163,017			61.33	356,839		16,154,768		45.27		20,071,700		56.25
Thereafter	676,329	$	25,666,257			37.95	$	31,208,191			46.14	880,021		40,430,231		45.94		53,483,676		60.78

	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
2006	141,457	$	9,313,424		$	65.84	$	9,399,004		$	66.44	520,971	$	24,697,859	$	47.41	$	24,830,127	$	47.66
2007	128,209		8,598,012			67.06		8,604,174			67.11	345,438		17,025,959		49.29		17,092,545		49.48
2008	496,829		31,580,866			63.56		32,067,476			64.54	284,728		12,015,837		42.20		12,210,099		42.88
2009	188,038		12,789,741			68.02		13,622,426			72.45	149,847		7,215,919		48.16		7,378,856		49.24
2010	337,933		24,020,760			71.08		24,447,810			72.35	226,167		13,089,416		57.88		13,707,003		60.61
2011	442,559		27,248,037			61.57		30,866,965			69.75	231,422		19,477,979		84.17		19,811,326		85.61
2012	994,696		62,434,012			62.77		64,586,019			64.93	147,806		6,959,940		47.09		7,666,549		51.87
2013	14,740		1,392,957			94.50		1,559,245			105.78	100,873		4,060,509		40.25		4,559,910		45.20
2014	212,030		15,534,348			73.26		14,786,004			69.74	123,784		5,115,204		41.32		5,694,938		46.01
2015	68,833		4,239,064			61.58		4,619,279			67.11	152,489		6,295,722		41.29		7,167,900		47.01
Thereafter	4,646,833		287,321,582			61.83		350,266,477			75.38	750,400		30,386,536		40.49		35,797,054		47.70

	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
2006	—	$	—		$	—	$	—		$	—	—	$	—	$	—	$	—	$	—
2007	—		—			—		—			—	—		—		—		—		—
2008	—		—			—		—			—	—		—		—		—		—
2009	—		—			—		—			—	—		—		—		—		—
2010	—		—			—		—			—	—		—		—		—		—
2011	—		—			—		—			—	—		—		—		—		—
2012	—		—			—		—			—	—		—		—		—		—
2013	—		—			—		—			—	—		—		—		—		—
2014	—		—			—		—			—	—		—		—		—		—
2015	—		—			—		—			—	—		—		—		—		—
Thereafter	—		—			—		—			—	—		—		—		—		—

(1)	Includes 10,011 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $48.54 and rent on expiring leases with future step-up is $48.38 per square foot in 2006.

(2)	Includes 15,228 square feet of retail space and kiosks. Excluding this space, current rent on expiring leases is $48.57 and rent on expiring leases with future step-up is $48.78 per square foot in 2007.

Boston Properties, Inc.

Fourth 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
2006	543,911	$	11,678,671	$	21.47	$	11,911,132	$	21.90	137,854	$	3,743,250	$	27.15	$	3,748,456	$	27.19
2007	634,415		17,055,623		26.88		17,388,499		27.41	287,117		7,455,963		25.97		7,548,381		26.29
2008	462,922		13,126,529		28.36		13,689,567		29.57	259,282		7,512,983		28.98		7,927,006		30.57
2009	496,399		16,494,915		33.23		17,204,124		34.66	371,336		11,268,139		30.34		11,490,791		30.94
2010	276,597		6,990,590		25.27		7,430,662		26.86	632,197		18,983,351		30.03		20,480,801		32.40
2011	489,166		12,208,665		24.96		13,307,794		27.21	606,040		17,847,464		29.45		20,073,467		33.12
2012	520,619		14,994,746		28.80		16,251,366		31.22	638,496		23,164,953		36.28		27,267,020		42.71
2013	96,384		2,055,518		21.33		2,057,822		21.35	71,476		2,204,143		30.84		2,616,938		36.61
2014	79,193		1,940,807		24.51		2,238,102		28.26	657,865		17,780,853		27.03		21,023,114		31.96
2015	14,671		286,618		19.54		286,618		19.54	457,942		12,484,699		27.26		15,343,939		33.51
Thereafter	147,500		3,542,038		24.01		4,551,582		30.86	781,610		26,095,075		33.39		27,733,632		35.48

	New York									San Francisco
Year of Lease Expiration	Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot		Rentable Square Footage Subject to Expiring Leases	Current Annualized Revenues Under Expiring Leases		Per Square Foot		Annualized Revenues Under Expiring Leases with future step-ups		Per Square Foot
2006	—	$	—	$	—	$	—	$	—	27,703	$	1,742,820	$	62.91	$	1,751,094	$	63.21
2007	—		—		—		—		—	29,971		758,346		25.30		764,289		25.50
2008	—		—		—		—		—	58,180		1,352,308		23.24		1,440,384		24.76
2009	—		—		—		—		—	19,424		874,122		45.00		481,743		24.80
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
2015	—		—		—		—		—	226,004		6,093,828		26.96		7,896,983		34.94
Thereafter	—		—		—		—		—	70,086		1,892,322		27.00		2,472,634		35.28

	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
2006	61,889	$	2,232,759	$	36.08	$	2,232,759	$	36.08	—	$	—	$	—	$	—	$	—
2007	525,067		16,482,508		31.39		16,685,462		31.78	—		—		—		—		—
2008	36,090		1,006,692		27.89		1,098,429		30.44	—		—		—		—		—
2009	234,117		7,865,558		33.60		8,283,537		35.38	—		—		—		—		—
2010	215,515		7,350,190		34.11		7,455,016		34.59	—		—		—		—		—
2011	303,293		9,669,125		31.88		10,210,692		33.67	—		—		—		—		—
2012	5,500		183,254		33.32		192,879		35.07	—		—		—		—		—
2013	138,177		4,298,263		31.11		4,837,889		35.01	—		—		—		—		—
2014	284,574		8,469,300		29.76		9,330,243		32.79	—		—		—		—		—
2015	154,152		3,918,169		25.42		4,689,327		30.42	—		—		—		—		—
Thereafter	69,351		2,222,218		32.04		2,545,461		36.70	—		—		—		—		—

Boston Properties, Inc.

Fourth Quarter 2005

HOTEL PERFORMANCE

Long Wharf Marriott – Boston


	Fourth Quarter 2005			Fourth Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		78.0	%		78.2	%	-0.3	%		81.4	%		83.4	%	-2.4	%
Average Daily Rate	$	234.86		$	224.38		4.7	%	$	220.17		$	209.64		5.0	%
Revenue per available room	$	183.13		$	175.47		4.4	%	$	179.12		$	174.74		2.5	%

Cambridge Center Marriott

	Fourth Quarter 2005			Fourth Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		70.1	%		71.6	%	-2.1	%		73.7	%		76.8	%	-4.0	%
Average Daily Rate	$	195.65		$	175.93		11.2	%	$	176.98			162.82		8.7	%
Revenue per available room	$	137.15		$	125.96		8.9	%	$	130.47			125.06		4.3	%

Residence Inn by Marriott (1)

	Fourth Quarter 2005			Fourth Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		90.1	%		81.2	%	11.0	%		85.1	%		83.1	%	2.4	%
Average Daily Rate	$	172.00		$	144.92		18.7	%	$	147.73		$	137.27		7.6	%
Revenue per available room	$	154.88		$	117.68		31.6	%	$	125.70		$	114.01		10.3	%

Total Hotel Performance (2)

	Fourth Quarter 2005			Fourth Quarter 2004			Percent Change		Year to Date 2005			Year to Date 2004			Percent Change
Occupancy		74.0	%		74.8	%	-1.1	%		77.0	%		80.0	%	-3.8	%
Average Daily Rate	$	214.57		$	199.31		7.7	%	$	197.82		$	185.42		6.7	%
Revenue per available room	$	159.34		$	149.85		6.3	%	$	153.95		$	149.04		3.3	%

(1)	On November 4, 2005, the Company sold the Residence Inn by Marriott^®.

(2)	Total Hotel Performance excludes the Residence Inn by Marriott^® due to its sale on November 4, 2005.

Boston Properties, Inc.

Fourth Quarter 2005

OCCUPANCY ANALYSIS

Same Property Occupancy⁽¹⁾- By Location


	CBD				Suburban				Total
Location	31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04
Greater Boston	88.5	%	94.0	%	93.3	%	89.3	%	90.7	%	91.8	%
Greater Washington	99.7	%	99.9	%	96.0	%	97.0	%	97.1	%	97.9	%
Midtown Manhattan	98.3	%	96.4	%	n/a		n/a		98.3	%	96.4	%
Princeton/East Brunswick, NJ	n/a		n/a		86.9	%	90.2	%	86.9	%	90.2	%
Greater San Francisco	91.1	%	86.7	%	89.8	%	69.8	%	90.8	%	83.5	%

Total Portfolio	94.7	%	94.4	%	93.0	%	91.5	%	94.0	%	93.2	%


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

	CBD				Suburban				Total
	31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04		31-Dec-05		31-Dec-04
Total Office Portfolio	94.7	%	94.4	%	92.4	%	90.7	%	93.8	%	93.0	%
Total Office/Technical Portfolio	100.0	%	100.0	%	97.5	%	97.5	%	97.6	%	97.6	%

Total Portfolio	94.7	%	94.4	%	93.0	%	91.5	%	94.0	%	93.2	%

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

Boston Properties, Inc.

Fourth Quarter 2005

SAME PROPERTY PERFORMANCE

Office, Office/Technical and Hotel Properties


	Office		Office/Technical		Hotel (1)		Total
Number of Properties	96		17		2		115
Square feet	28,368,222		1,403,789		750,400		30,522,411
Percent of in-service properties	96.1	%	100.0	%	100.0	%	96.4	%
Occupancy @ 12/31/2004	93.0	%	97.6	%	—		93.2	%
Occupancy @ 12/31/2005	93.8	%	97.6	%	—		94.0	%
Percent change from 4th quarter 2005 over 4th quarter 2004 (2):
Rental revenue	4.3	%	3.4	%	5.3	%	4.4	%
Operating expenses and real estate taxes	9.7	%	10.3	%	7.5	%	9.4	%
Net Operating Income (3)	1.8	%	1.7	%	-0.2	%	1.7	%
Net Operating Income (3) - without hotels							1.8	%
Rental revenue - cash basis	6.4	%	4.5	%	5.3	%	6.3	%
Net Operating Income (3) - cash basis (4)	4.6	%	3.1	%	-0.2	%	4.5	%
Net Operating Income (3) - cash basis(4) - without hotels							4.6	%

Same Property Lease Analysis - quarter ended December 31, 2005


	Office			Office/Technical			Total
Vacant space available @ 10/1/2005 (sf)		1,826,277			33,799			1,860,076
Square footage of leases expiring or terminated 10/1/2005-12/31/2005		937,156			13,408			950,564

Total space for lease (sf)		2,763,433			47,207			2,810,640

New tenants (sf)		955,679						955,679
Renewals (sf)		55,669			13,408			69,077

Total space leased (sf)		1,011,348			13,408			1,024,756

Space available @ 12/31/2005 (sf)		1,752,085			33,799			1,785,884

Net (increase)/decrease in available space (sf)		74,192			—			74,192
Average lease term (months)		97			12			96
Average free rent (days)		3			—			3
2nd generation TI/Comm PSF	$	27.36		$	0.30		$	26.99
Increase (decrease) in 2nd generation gross rents (4)		0.86	%		8.32	%		0.92	%
Increase (decrease) in 2nd generation net rents (4)		-1.13	%		9.71	%		-1.02	%

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

(2)	See page 45 for a quantitative reconciliation of Same Property Net Operating Income (NOI) by reportable segment.

(3)	For a quantitative reconciliation of 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 775,253 square feet.

Boston Properties, Inc.

Fourth Quarter 2005

Reconciliation of Net Operating Income to Net Income


	For the three months ended
	12/31/2005			12/31/2004
	*(in thousands)*
Net income available to common shareholders	$	158,298		$	62,254
Gains on sales of real estate from discontinued operations, net of minority interest		(39,364	)		(1,087	)
Income from discontinued operations, net of minority interest		(730	)		(423	)
Gains on sales of real estate, net of minority interest		(48,542	)		—
Minority interest in Operating Partnership		16,928			15,920
Income from unconsolidated joint ventures		(1,530	)		(664	)
Minority interest in property partnerships		(1,366	)		(1,558	)

Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and discontinued operations		83,694			74,442
Add:
Depreciation and amortization		66,290			68,342
Interest expense		74,804			79,378
General and administrative expense		13,136			15,541
Subtract:
Interest and other income		(2,726	)		(828	)
Development and management services income		(3,714	)		(5,324	)

Consolidated Net Operating Income	$	231,484		$	231,551

Same Property Net Operating Income	$	222,887		$	219,145
Net operating income from non Same Properties (1)		4,559			11,772
Termination income		4,038			634

Consolidated Net Operating Income	$	231,484		$	231,551

Same Property Net Operating Income	$	222,887		$	219,145
Less straight-line rent and fair value lease revenue		13,795			18,994

Same Property Net Operating Income - cash basis	$	209,092		$	200,151

(1)	See pages 21-23 for properties which are not included as part of Same Property Net Operating Income.

Boston Properties, Inc.

Fourth Quarter 2005

Same Property Net Operating Income by Reportable Segment

(in thousands)


	Office									Office/Technical
	For the three months ended				$ Change			% Change		For the three months ended					$ Change			% Change
	31-Dec-05		31-Dec-04		$ Change			% Change		31-Dec-05			31-Dec-04		$ Change			% Change
Rental Revenue	$	324,759	$	308,081						$	5,949		$	5,755
Less Termination Income		4,038		634							—			—

Rental revenue - subtotal		320,721		307,447		13,274		4.3	%		5,949			5,755		194		3.4	%
Operating expenses and real estate taxes		108,579		98,983		9,596		9.7	%		1,241			1,125		116		10.3	%

Net Operating Income (1)	$	212,142	$	208,464	$	3,678		1.8	%	$	4,708		$	4,630	$	78		1.7	%

Rental revenue - subtotal	$	320,721	$	307,447						$	5,949		$	5,755
Less straight line rent and fair value lease revenue		13,842		18,975		(5,133	)	-27.1	%		(49	)		17		(66	)	-388.2	%

Rental revenue - cash basis		306,879		288,472		18,407		6.4	%		5,998			5,738		260		4.5	%
Less:
Operating expenses and real estate taxes		108,579		98,983		9,596		9.7	%		1,241			1,125		116		10.3	%

Net Operating Income (2) - cash basis	$	198,300	$	189,489	$	8,811		4.6	%	$	4,757		$	4,613	$	144		3.1	%


	Hotel									Total
	For the three months ended				$ Change			% Change		For the three months ended					$ Change			% Change
	31-Dec-05		31-Dec-04		$ Change			% Change		31-Dec-05			31-Dec-04		$ Change			% Change
Rental Revenue	$	22,162	$	21,050						$	352,870		$	334,886
Less Termination Income		—		—							4,038			634

Rental revenue - subtotal		22,162		21,050	$	1,112		5.3	%		348,832			334,252		14,580		4.4	%
Operating expenses and real estate taxes		16,125		14,999		1,126		7.5	%		125,945			115,107		10,838		9.4	%

Net Operating Income (1)	$	6,037	$	6,051	$	(14	)	-0.2	%	$	222,887		$	219,145	$	3,742		1.7	%

Rental revenue - subtotal	$	22,162	$	21,050						$	348,832		$	334,252
Less straight line rent and fair value lease revenue		2		2		—		0.0	%		13,795			18,994		(5,199	)	-27.4	%

Rental revenue - cash basis		22,160		21,048		1,112		5.3	%		335,037			315,258		19,779		6.3	%
Less:
Operating expenses and real estate taxes		16,125		14,999		1,126		7.5	%		125,945			115,107		10,838		9.4	%

Net Operating Income (2) - cash basis	$	6,035	$	6,049	$	(14	)	-0.2	%	$	209,092		$	200,151	$	8,941		4.5	%

(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.

Fourth Quarter 2005

LEASING ACTIVITY

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


	Office			Office/Technical			Industrial			Total
Vacant space available @ 10/1/2005 (sf)		1,916,567			33,799			152,009			2,102,375
Property dispositions/ assets taken out of service (sf)		(70,489	)		—			(152,009	)		(222,498	)
Property acquisitions/ assets placed in-service (sf)		99,706			—			—			99,706
Leases expiring or terminated 10/1/2005-12/31/2005 (sf)		937,156			13,408			—			950,564

Total space for lease (sf)		2,882,940			47,207			—			2,930,147

New tenants (sf)		955,679			—			—			955,679
Renewals (sf)		55,669			13,408			—			69,077

Total space leased (sf)		1,011,348			13,408			—			1,024,756	(1)

Space available @ 12/31/2005 (sf)		1,871,592			33,799			—			1,905,391

Net (increase)/decrease in available space (sf)		44,975			—			152,009			196,984
Average lease term (months)		97			12			—			96
Average free rent (days)		3			—			—			3
2nd generation TI/Comm PSF	$	27.36		$	0.30		$	—		$	26.99
Increase (decrease) in 2nd generation gross rents (2)		0.86	%		8.32	%		0.00	%		0.92	%
Increase (decrease) in 2nd generation net rents (3)		-1.13	%		9.71	%		0.00	%		-1.02	%

(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 775,253.

(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 775,253.


	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	7,048	306,108	-21.30	%	-31.27	%	313,156
Washington	—	81,300	-8.49	%	-12.26	%	81,300
New York	29,807	249,849	13.61	%	16.09	%	279,656
San Francisco	—	281,252	14.27	%	22.95	%	281,252
Princeton	—	69,392	-6.08	%	-19.72	%	69,392

	36,855	987,901	0.92	%	-1.02	%	1,024,756

Boston Properties, Inc.

Fourth Quarter 2005

HISTORICALLY GENERATED CAPITAL EXPENDITURES,

TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures

(in thousands)


	Q4 2005		Q3 2005		Q2 2005		Q1 2005		2004		2003
Recurring capital expenditures	$	9,076	$	5,637	$	6,195	$	1,461	$	25,101	$	18,514
Planned non-recurring capital expenditures associated with acquisition properties		576		1,182		237		962		4,889		4,464
Hotel improvements, equipment upgrades and replacements		1,860		1,539		182		516		1,001		2,345

	$	11,512	$	8,358	$	6,614	$	2,939	$	30,991	$	25,323


*2nd Generation Tenant Improvements and Leasing Commissions*

	Q4 2005		Q3 2005		Q2 2005		Q1 2005		2004		2003
Office
Square feet		974,493		476,711		958,750		399,125		3,356,267		2,635,914

Tenant improvement and lease commissions PSF	$	27.36	$	40.59	$	30.26	$	11.85	$	24.74	$	14.41

Office/Technical
Square feet		13,408		69,345		—		—		195,953		169,893

Tenant improvement and lease commissions PSF	$	0.30	$	3.39	$	—	$	—	$	14.35	$	6.43

Industrial
Square feet				—		—		—		—		—

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

Average tenant improvement and lease commissions PSF	$	26.99	$	35.86	$	30.26	$	11.85	$	24.17	$	13.93

Boston Properties, Inc.

Fourth Quarter 2005

ACQUISITIONS/DISPOSITIONS

as of December 31, 2005

ACQUISITIONS

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


Property	Date Acquired	Square Feet	Initial Investment		Anticipated Future Investment		Total Investment		Percentage Leased
Prospect Place, Waltham MA	Dec-05	297,402	$	62,768,000	$	8,835,000	$	71,603,000	67	%

Total Acquisitions		297,402	$	62,768,000	$	8,835,000	$	71,603,000	67	%

DISPOSITIONS

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


Property	Date Disposed	Square Feet	Gross Sales Price		Book Gain
Prudential Center - Land Parcel	Feb-05	N/A	$	50,100,000		N/A	(1)
Decoverly Four and Five - Land Parcels	Feb-05	N/A		5,180,000	$	1,445,000
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
Residence Inn by Marriott^® (221 Rooms)	Nov-05	187,474		68,000,000		39,929,000
40-46 Harvard Street	Nov-05	152,009		7,800,000		7,012,000
Embarcadero Center West Tower	Dec-05	474,523		205,760,000		58,174,000

Total Dispositions		2,512,745	$	838,190,000	$	239,623,000

(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.

Fourth Quarter 2005

VALUE CREATION PIPELINE - DEVELOPMENT IN PROGRESS (1)

as of December 31, 2005


Development Properties	Initial Occupancy	Estimated Stabilization Date	Location	# of Buildings	Square feet	Investment to Date		Estimated Total Investment		Total Construction Loan		Amount Drawn at December 31, 2005		Estimated Future Equity Requirement		Percentage Leased (2)
Seven Cambridge Center Office	Q1 2006	Q1 2006	Cambridge, MA	1	231,028	$	101,214,619	$	106,156,057	$	106,250,000	$	84,029,741	$	—	100	%
Parcel E (12290 Sunrise Valley)	Q2 2006	Q2 2006	Reston, VA	1	182,000		33,305,131		45,754,416		—		—		12,449,285	100	%
Capital Gallery expansion	Q2 2006	Q3 2007	Washington, D.C.	—	318,557		39,962,989		69,100,000		47,225,000		17,244,483		—	83	%
Wisconsin Place- Infrastructure (23.89% ownership)	N/A	N/A	Chevy Chase, MD	—	—		17,665,811		31,625,638		28,668,000		14,357,366		—	N/A
505 9th Street (50% ownership)	Q4 2007	Q4 2008	Washington, D.C.	1	323,000		24,437,211		65,000,000		47,500,000		5,043,905		—	73	%

Total Development Properties				3	1,054,585	$	216,585,761	$	317,636,111	$	229,643,000	$	120,675,495	$	12,449,285	87	%

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 December 31, 2005		Estimated Future Equity Requirement		Percentage Leased
Seven Cambridge Center West Garage	Q4 2005	Q4 2005	Cambridge, MA	—	—	$	16,569,278	$	18,858,068	$	18,750,000	$	14,828,778	$	—	N/A
901 New York Avenue (25% ownership)	Q3 2004	Q2 2005	Washington, D.C.	1	539,229		42,645,112		43,260,821		42,500,000		42,500,000		615,709	98	%

Total Developments Placed in Service				1	539,229	$	59,214,390	$	62,118,889	$	61,250,000	$	57,328,778	$	615,709	98	%

(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 January 27, 2006.

Boston Properties, Inc.

Fourth Quarter 2005

VALUE CREATION PIPELINE - OWNED LAND PARCELS

as of December 31, 2005


Location	Acreage	Developable Square Feet
Rockville, MD	68.9	937,000
Dulles, VA	76.6	934,000
Gaithersburg, MD	27.0	850,000
San Jose, CA	3.7	841,000
Reston, VA	39.6	1,417,000
Boston, MA	0.2	304,500
Marlborough, MA	50.0	400,000
Weston, MA	74.0	350,000
Waltham, MA	4.3	202,000
Andover, MA	10.0	110,000
Washington, D.C.	0.5	170,000
Chevy Chase, MD	1.0	300,000

	355.7	6,815,500

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

as of December 31, 2005


Location	Acreage	Developable Square Feet
Princeton, NJ (1)	149.9	1,900,000
Framingham, MA (3)	21.5	300,000
Cambridge, MA (4)	—	200,000

	171.4	2,400,000

(1)	$30.50 per square foot and $125,000 per annum non-refundable payment.

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

(3)	Subject to ground lease.

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

Boston Properties, Inc.

Fourth Quarter 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, acquired or repositioned 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 21-23 for “In-Service Properties” which are not included in “Same Properties.”

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

PRESS RELEASE

Exhibit 99.2

LOGO


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

FOURTH QUARTER 2005 RESULTS


Reports diluted FFO per share of $1.09		Reports diluted EPS of $1.35

BOSTON, MA, January 30, 2006 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the fourth quarter ended December 31, 2005.

Results for the quarter ended December 31, 2005

Funds from Operations (FFO) for the quarter ended December 31, 2005 were $126.7 million, or $1.13 per share basic and $1.09 per share diluted. This compares to FFO for the quarter ended December 31, 2004 of $118.9 million, or $1.09 per share basic and $1.05 per share diluted. The weighted average number of basic and diluted shares outstanding totaled 112,340,334 and 119,496,904, respectively, for the quarter ended December 31, 2005 and 109,358,601 and 117,268,572, respectively, for the quarter ended December 31, 2004.

Net income available to common shareholders was $158.3 million for the three months ended December 31, 2005, compared to $62.3 million for the quarter ended December 31, 2004. Net income available to common shareholders per share (EPS) for the quarter ended December 31, 2005 was $1.38 basic and $1.35 on a diluted basis. This compares to EPS for the fourth quarter of 2004 of $0.57 basic and $0.56 on a diluted basis. EPS includes $0.77 and $0.01, on a diluted basis, related to gains on sales of real estate and discontinued operations for the quarters ended December 31, 2005 and 2004, respectively.

Results for the year ended December 31, 2005

FFO for the year ended December 31, 2005 was $489.0 million, or $4.39 per share basic and $4.25 per share diluted, after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate. This compares to FFO for the year ended December 31, 2004 of $459.5 million, or $4.32 per share basic and $4.16 per share diluted. Losses from early extinguishments of debt associated with the sales of real estate totaled $0.08 per share basic and diluted for the year ended December 31, 2005. The weighted average

number of basic and diluted shares outstanding totaled 111,274,188 and 118,722,134, respectively, for the year ended December 31, 2005 and 106,458,214 and 114,815,522, respectively, for the year ended December 31, 2004.

Net income available to common shareholders was $442.5 million for the year ended December 31, 2005, compared to $284.0 million for the year ended December 31, 2004. EPS for the year ended December 31, 2005 was $3.98 basic and $3.90 on a diluted basis. This compares to EPS for the year ended December 31, 2004 of $2.67 basic and $2.61 on a diluted basis. EPS includes $1.77 and $0.36, on a diluted basis, related to gains on sales of real estate and discontinued operations for the years ended December 31, 2005 and 2004, respectively.

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

As of December 31, 2005, the Company’s portfolio consisted of 121 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 116 properties in service as of December 31, 2005 was 93.8%.

Significant events of the fourth quarter include:

•

On October 4, 2005, the Company repaid the mortgage loan collateralized by its Embarcadero Center West Tower property located in San Francisco, California totaling approximately $90.7 million using approximately $72.7 million of available cash and $18.0 million drawn under the Company’s Unsecured Line of Credit. There was no prepayment penalty associated with the repayment

•

On November 4, 2005, the Company sold the Residence Inn by Marriott^®, a 221-room extended-stay hotel property located in Cambridge, Massachusetts, at a gross sale price of approximately $68.0 million, less closing costs and a credit of approximately $3.0 million representing the property-controlled furniture, fixtures and equipment escrow funds set aside for planned property upgrades.

•

On November 7, 2005, the Company sold 40-46 Harvard Street, an industrial property with approximately 152,000 net rentable square feet located in Westwood, Massachusetts, at a sale price of approximately $7.8 million.

•

On December 14, 2005, the Company sold Embarcadero Center West Tower, a Class A office property with approximately 475,000 net rentable square feet located in San Francisco, California, at a gross sale price of approximately $205.8 million, less customary closing costs, transaction-related expenses and unfunded tenant obligations totaling approximately $10.6 million.

•

On December 14, 2005, the joint venture entity that is developing 505 9^th Street in Washington, D.C. closed on a collateralized, construction-to-permanent financing totaling

$95.0 million. The construction financing is comprised of a $60.0 million loan commitment, which bears interest at a fixed rate of 5.73% per annum, and a $35.0 million loan commitment, which bears interest at a variable rate equal to LIBOR plus 1.25% per annum. The construction financing converts to a ten-year fixed rate loan in October 2007, subject to the satisfaction of certain operating performance and financial measures, at an interest rate of 5.73% per annum with a provision for an increase in the borrowing capacity by $35.0 million (which would bring the total available financing to $130.0 million).

•

On December 20, 2005, the Company’s Value-Added Fund acquired 300 Billerica Road, a 111,000 net rentable square foot office property located in Chelmsford, Massachusetts, at a purchase price of approximately $10.0 million. The acquisition was financed with new mortgage indebtedness totaling $7.5 million and approximately $2.5 million in cash, of which the Company’s share was approximately $0.6 million. The mortgage financing bears interest at a fixed rate of 5.69% per annum and matures on January 1, 2016.

•

On December 30, 2005, the Company acquired Prospect Place, a Class A office property with approximately 297,000 net rentable square feet located in Waltham, Massachusetts, at a purchase price of approximately $62.8 million. The acquisition was financed with available cash. Prospect Place is currently 67% leased with an average rental rate that is below market. The Company projects this property’s 2006 Unleveraged FFO Return to be 4.7% and 2006 Unleveraged Cash Return to be 3.4%. Assuming the Company leases substantially all of the currently available space at market rates by 2008 and spends approximately $8.8 million for improvements and leasing commissions, the Company projects stabilized Unleveraged FFO Return to be 8.7% and stabilized Unleveraged Cash Return to be 7.9%. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2006 & Stabilized Returns on Acquisition.” There can be no assurance that actual returns will not differ materially from these projections.

•

On December 30, 2005, the Company repaid at maturity the mortgage loan collateralized by its 601 & 651 Gateway Boulevard properties located in South San Francisco, California, totaling approximately $85.7 million.

•

During the fourth quarter 2005, the Company continued its planned interest rate hedging program. As of December 31, 2005, the Company had entered into forward-starting interest rate swap contracts which fix the ten-year treasury rate for financings in early 2007 at a weighted-average rate of 4.34% per annum on notional amounts aggregating $500.0 million, which go into effect in February 2007 and expire in February 2017. The Company entered into the interest rate swap contracts designated and qualifying as cash flow hedges to reduce its exposure to the variability in future cash flows attributable to changes in the Treasury rate in contemplation of obtaining ten-year fixed-rate financing in early 2007.

Transactions completed subsequent to December 31, 2005:

•

During January 2006, the Company placed-in-service 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. The Company has leased 100% of the space to the

Massachusetts Institute of Technology for occupancy by its affiliate, the Eli and Edythe L. Broad Institute. On October 1, 2005, the Company had placed-in-service the West Garage phase of the project consisting of parking for approximately 800 cars.

EPS and FFO per Share Guidance:

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


	First Quarter 2006 Low - High	Full Year 2006 Low - High
Projected EPS (diluted)	$ 0.52 - $ 0.55	$ 2.19 - $ 2.35
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	0.02 - 0.03	0.02 - 0.03

Projected FFO per Share (diluted)	$ 0.99 - $ 1.01	$ 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. The estimates do not include possible future gains or losses from property dispositions or the impact on operating results from possible future property acquisitions or dispositions. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth above.

Boston Properties will host a conference call tomorrow, January 31, 2006 at 10:00 AM (Eastern Time), open to the general public, to discuss the fourth quarter and full fiscal year 2005 results, the 2006 projections and other related matters. The number to call for this interactive teleconference is (800) 218-8862. A replay of the conference call will be available through February 7, 2006 by dialing (800) 405-2236 and entering the passcode 11049648, or as a podcast on the Company’s website, www.bostonproperties.com, shortly after the call. An audio-webcast will also be archived and may be accessed in the Investor Relations section of the Company’s website under the heading Events & Webcasts.

Additionally, a copy of Boston Properties’ fourth 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 two hotels. 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 effects of acquisitions and dispositions, including possible impairment charges, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, including its guidance for the first quarter and full fiscal year 2006.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended December 31,						Year ended December 31,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Revenue
Rental:
Base rent	$	279,583		$	276,209		$	1,110,212		$	1,067,100
Recoveries from tenants		44,098			41,552			173,254			164,770
Parking and other		14,051			14,353			55,567			57,270

Total rental revenue		337,732			332,114			1,339,033			1,289,140
Hotel revenue		22,161			21,050			69,277			66,427
Development and management services		3,714			5,324			17,310			20,440
Interest and other		2,726			828			12,015			10,339

Total revenue		366,333			359,316			1,437,635			1,386,346

Expenses
Operating:
Rental		112,284			106,614			438,335			416,327
Hotel		16,125			14,999			51,689			49,442
General and administrative		13,136			15,541			55,471			53,636
Interest		74,804			79,378			308,091			306,170
Depreciation and amortization		66,290			68,342			266,829			249,649
Losses from early extinguishments of debt		—			—			12,896			6,258

Total expenses		282,639			284,874			1,133,311			1,081,482

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		83,694			74,442			304,324			304,864
Minority interests in property partnerships		1,366			1,558			6,017			4,685
Income from unconsolidated joint ventures		1,530			664			4,829			3,380

Income before minority interest in Operating Partnership, gains on sales of real estate and land held for development and discontinued operations		86,590			76,664			315,170			312,929
Minority interest in Operating Partnership		(16,928	)		(15,920	)		(74,103	)		(67,743	)

Income before gains on sales of real estate and land held for development and discontinued operations		69,662			60,744			241,067			245,186
Gains on sales of real estate, net of minority interest		48,542			—			150,674			8,149
Gains on sales of land held for development, net of minority interest		—			—			1,210			—

Income before discontinued operations		118,204			60,744			392,951			253,335
Discontinued operations:
Income from discontinued operations, net of minority interest		730			423			1,908			3,344
Gains on sales of real estate from discontinued operations, net of minority interest		39,364			1,087			47,656			27,338

Net income available to common shareholders	$	158,298		$	62,254		$	442,515		$	284,017

Basic earnings per common share:
Income available to common shareholders before discontinued operations	$	1.02		$	0.56		$	3.53		$	2.38
Discontinued operations, net of minority interest		0.36			0.01			0.45			0.29

Net income available to common shareholders	$	1.38		$	0.57		$	3.98		$	2.67

Weighted average number of common shares outstanding		112,340			109,359			111,274			106,458

Diluted earnings per common share:
Income available to common shareholders before discontinued operations	$	1.00		$	0.55		$	3.46		$	2.33
Discontinued operations, net of minority interest		0.35			0.01			0.44			0.28

Net income available to common shareholders	$	1.35		$	0.56		$	3.90		$	2.61

Weighted average number of common and common equivalent shares outstanding		114,640			111,888			113,559			108,762

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS


	December 31, 2005			December 31, 2004
	(in thousands, except for share amounts)
	(unaudited)
ASSETS
Real estate	$	8,721,903		$	9,033,858
Construction in progress		177,576			35,063
Land held for future development		248,645			222,306
Less: accumulated depreciation		(1,264,073	)		(1,143,369	)

Total real estate		7,884,051			8,147,858
Cash and cash equivalents		261,496			239,344
Cash held in escrows		25,618			24,755
Investments in marketable securities		—			—
Tenant and other receivables, net of allowance for doubtful accounts of $2,519 and $2,879, respectively		52,668			25,500
Accrued rental income, net of allowance of $2,638 and $4,252, respectively		302,356			251,236
Deferred charges, net		242,660			254,950
Prepaid expenses and other assets		41,261			38,630
Investments in unconsolidated joint ventures		90,207			80,955

Total assets	$	8,900,317		$	9,063,228

LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities:
Mortgage notes payable	$	3,297,192		$	3,541,131
Unsecured senior notes, net of discount		1,471,062			1,470,683
Unsecured line of credit		58,000			—
Accounts payable and accrued expenses		102,729			94,451
Dividends and distributions payable		107,643			91,428
Interest rate contract		—			1,164
Accrued interest payable		47,911			50,670
Other liabilities		154,123			91,300

Total liabilities		5,238,660			5,340,827

Commitments and contingencies		—			—

Minority interests		740,085			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, 112,621,162 and 110,399,385 shares issued and 112,542,262 and 110,320,485 shares outstanding in 2005 and 2004, respectively		1,125			1,103
Additional paid-in capital		2,750,723			2,633,980
Earnings in excess of dividends		186,328			325,452
Treasury common stock, at cost		(2,722	)		(2,722	)
Unearned compensation		(5,001	)		(6,103	)
Accumulated other comprehensive loss		(8,881	)		(15,637	)

Total stockholders’ equity		2,921,572			2,936,073

Total liabilities and stockholders’ equity	$	8,900,317		$	9,063,228

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)


	Three months ended December 31,						Year ended December 31,
	2005			2004			2005			2004
	(in thousands, except for per share amounts)
	(unaudited)
Net income available to common shareholders	$	158,298		$	62,254		$	442,515		$	284,017
Add:
Minority interest in Operating Partnership		16,928			15,920			74,103			67,743
Less:
Minority interests in property partnerships		1,366			1,558			6,017			4,685
Income from unconsolidated joint ventures		1,530			664			4,829			3,380
Gains on sales of real estate, net of minority interest		48,542			—			150,674			8,149
Gains on sales of land held for development, net of minority interest		—			—			1,210			—
Income (loss) from discontinued operations, net of minority interest		730			423			1,908			3,344
Gains on sales of real estate from discontinued operations, net of minority interest		39,364			1,087			47,656			27,338

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		83,694			74,442			304,324			304,864
Add:
Real estate depreciation and amortization (2)		67,987			69,989			274,476			257,319
Income (loss) from discontinued operations		869			548			2,279			4,238
Income from unconsolidated joint ventures		1,530			664			4,829			3,380
Less:
Minority interests in property partnerships’ share of funds from operations		(114	)		123			(113	)		(922	)
Preferred distributions		(3,098	)		(3,361	)		(12,918	)(3)		(15,050	)

Funds from operations (FFO)		150,868			142,405			572,877			553,829
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		150,868			142,405			583,918			553,829
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		24,167			23,514			94,946			94,332

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	$	126,701		$	118,891		$	488,972		$	459,497

Our percentage share of funds from operations - basic		83.98	%		83.49	%		83.74	%		82.97	%

Weighted average shares outstanding - basic		112,340			109,359			111,274			106,458

FFO per share basic after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.13		$	1.09		$	4.39		$	4.32

FFO per share basic	$	1.13		$	1.09		$	4.31		$	4.32

Weighted average shares outstanding - diluted		119,497			117,269			118,722			114,816

FFO per share diluted after a supplemental adjustment to exclude losses from early extinguishments of debt associated with the sales of real estate	$	1.09		$	1.05		$	4.25		$	4.16

FFO per share diluted	$	1.09		$	1.05		$	4.17		$	4.16

(1)

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.

(2)

Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $66,290, $68,342, $266,829 and $249,649, our share of unconsolidated joint venture real estate depreciation and amortization of $2,174, $1,798, $8,554 and $6,814 and depreciation and amortization from discontinued operations of $63, $393, $812 and $3,292, less corporate related depreciation and amortization of $540, $544, $1,719 and $2,436 for the three months and year ended December 31, 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 that followed previously completed sales of real estate.

BOSTON PROPERTIES, INC.

PROJECTED 2006 AND STABILIZED RETURNS ON ACQUISITION


	Prospect Place
	2006			Stabilized
	(dollars in thousands)
Base rent and recoveries from tenants	$	5,869		$	9,881
Straight-line rent		231			(57	)
Fair value lease revenue		613			627

Total rental revenue		6,713			10,451
Operating Expenses		3,746			4,234

Revenue less Operating Expenses		2,967			6,217
Depreciation and amortization		(3,051	)		(2,887	)

Net income	$	(84	)	$	3,330
Add:
Depreciation and amortization		3,051			2,887

Unleveraged FFO	$	2,967		$	6,217
Less:
Straight-line rent		(231	)		57
Fair value lease revenue		(613	)		(627	)

Unleveraged Cash	$	2,123		$	5,647
Cash	$	62,554		$	62,554
Closing costs		214			214
Tenant and capital improvements		—			8,835

Total Investment	$	62,768		$	71,603
Total Investment Per Square Foot of Net Rentable Building Area	$	212		$	242
Unleveraged FFO Return (1)		4.7	%		8.7	%
Unleveraged Cash Return (2)		3.4	%		7.9	%

(1)

Unleveraged FFO Return is determined by dividing the Unleveraged FFO (based on the projected results for either the year ending December 31, 2006 or stabilized results) by Total Investment. Other real estate companies may calculate this return differently. Management believes projected Unleveraged FFO Return is a useful measure in the real estate industry when determining the appropriate purchase price for a property or estimating a property's value. When evaluating acquisition opportunities, management considers, among other factors, projected Unleveraged FFO Return because it excludes, among other items, interest expense (which may vary depending on the level of corporate debt or property-specific debt), as well as depreciation and amortization expense (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates). In addition, management considers its cost of capital and available financing alternatives in making decisions concerning acquisitions.

(2)

Unleveraged Cash Return is determined by dividing the Unleveraged Cash (based on the projected results for either the year ending December 31, 2006 or stabilized results) by Total Investment. Other real estate companies may calculate this return differently. Management believes that projected Unleveraged Cash Return is also a useful measure of a property's value when used in addition to Unleveraged FFO Return because, by eliminating the effect of straight-lining of rent and the SFAS No. 141 treatment of in-place above- and below-market leases, it enables an investor to assess the cash on cash return from the property over the forecasted period.

Management is presenting these projected returns and related calculations to assist investors in analyzing the Company's recent acquisition. Management does not intend to present this data for any other purpose, for any other period or for its other properties, and is not intending for these measures to otherwise provide information to investors about the Company's financial condition or results of operations. The Company does not undertake a duty to update any of these projections.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES


	% Leased by Location
	December 31, 2005		December 31, 2004
Greater Boston	89.9	%	90.2	%
Greater Washington, D.C.	97.2	%	97.9	%
Midtown Manhattan	98.3	%	96.4	%
Baltimore, MD	N/A		90.9	%
Richmond, VA	N/A		91.3	%
Princeton/East Brunswick, NJ	86.9	%	90.2	%
Greater San Francisco	90.8	%	80.3	%

Total Portfolio	93.8	%	92.1	%


	% Leased by Type
	December 31, 2005		December 31, 2004
Class A Office Portfolio	93.7	%	92.3	%
Office/Technical Portfolio	97.6	%	97.6	%
Industrial Portfolio	N/A		0.0	%

Total Portfolio	93.8	%	92.1	%