☐	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)

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☐	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))

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Item 2.02.	Results of Operations and Financial Condition.

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•	to maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC;

•	to invest in the highest quality buildings (primarily office) with unique amenities and locations that are able to maintain high occupancy, achieve premium rental rates through economic cycles and that advance our commitment to sustainable development and operations;

•

in our core markets, to maintain scale and a full-service real estate capability (development, construction, leasing and property management) to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as development, repositioning, acquisitions and dispositions, throughout the real estate investment cycle and (3) provide superior service to our tenants;

•	to be astute in market timing for investment decisions by developing into economic growth, acquiring properties in times of opportunity and selling assets at attractive prices, resulting in continuous portfolio refreshment;

•	to ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make opportunistic investments; and

•	to foster a culture and reputation of integrity and fair dealing, making us the counterparty of choice for tenants and real estate industry participants and the employer of choice for talented real estate professionals.

1	For additional detail, see page 25.

2	For the Company's definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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1	Full Year 2019 assumptions include approximately $10 million related to the adoption of ASU 2016-02 - "Leases" on January 1, 2019 under which lessors will only capitalize incremental direct leasing costs.  As a result, the Company will no longer capitalize external legal costs and internal leasing wages and instead will expense these and other non-incremental costs as incurred.

1	For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 6.

2	For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

3	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

4	Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

5	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.

6	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.

7	For a quantitative reconciliation for the three months ended December 31, 2018 and September 30, 2018, see page 29.

8	For a quantitative reconciliation for the three months ended December 31, 2018 and September 30, 2018, see page 28.

9	For a quantitative reconciliation for the three months ended December 31, 2018, see page 10.

10	For a quantitative reconciliation for December 31, 2018, see page 25.

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1	General and administrative expense includes $3.3 million and $(1.1) million and gains (losses) from investments in securities include $(3.3) million and $1.1 million for the three months ended December 31, 2018 and September 30, 2018, respectively, related to the Company's deferred compensation plan.

2	Consists of approximately $8.7 million and $3.1 million related to 6595 Springfield Center Drive (TSA Headquarters) and 2600 Tower Oaks Boulevard, respectively.

3	For additional detail, see page 6.

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.

3	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.

3	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.

4	Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

5

Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2021 with no payments thereafter. The Company is recognizing these amounts on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

6	See page 58 for additional information.

7	Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

8	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

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1	For a quantitative reconciliation for the three months ended December 31, 2018, see page 60.

2	For a quantitative reconciliation for the three months ended December 31, 2018, see page 58.

3	Pages 19-22 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2018 and therefore are no longer a part of the Company’s property portfolio.

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1

In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $168 and $(31) for the three months ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company has remaining lease payments aggregating approximately $26.1 million, all of which it expects to incur by the end of 2021 with no payments thereafter. Under GAAP, the Company is recognizing expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2021 may vary significantly.

2	Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 7.

3	Pages 19-22 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2018 and therefore are no longer a part of the Company’s property portfolio.

4	For a quantitative reconciliation for the three months ended December 31, 2018, see page 58.

5	For a quantitative reconciliation for the three months ended December 31, 2018, see page 60.

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1	Includes 100% share of consolidated joint ventures but excludes Salesforce Tower because it is not a Same Property.

2	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3	For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 8-9.

4	Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 7.

5	Excludes the straight-line impact of approximately $168 and $(31) for the three months ended December 31, 2018 and 2017, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 9.

6	BXP's Share represents consolidated plus the Company' share of unconsolidated joint ventures less the partners' share of consolidated joint ventures.

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1	Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at 399 Park Avenue and 767 Fifth Avenue (the GM Building) (60% ownership) in New York City.

2	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3	Includes 100% of unconsolidated joint ventures.

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1

The initial investment consists of the Company's initial equity investment and mortgage financing provided by the Company to the unconsolidated joint venture. The mortgage financing totals $80.0 million, bears interest at a variable rate equal to LIBOR plus 3.50% per annum and matures on July 13, 2023, with extension options, subject to certain conditions. The loan has been reflected as Related Party Note Receivable on the Company’s Consolidated Balance Sheets.

2	At acquisition, the joint venture funded a portion of the acquisition with a $300 million mortgage loan.  The Company’s share of the investment is exclusive of this loan.

3	See page 13 for additional information.

4	Excludes approximately $2.6 million of gains on sales of real estate recognized during the year ended December 31, 2018 related to gain amounts from sales of real estate occurring in prior years.

5	The gross sale price includes a $5.5 million payment to be received by the Company from the anchor tenant in January 2020, which is not included in the net cash proceeds.

6

Reflects the sale of the land and project costs incurred through the closing date. The carrying value of the property exceeded the estimated net sales price, and as a result, the Company recognized an impairment loss, which is included in Impairment Losses on the Company's Consolidated Statements of Operations. Concurrently with the sale, the Company entered into development management and guarantee agreements with the buyer and will earn fees aggregating approximately $9.8 million.

7	The net cash proceeds exclude financing provided by the Company to the buyer totaling $19.5 million, which matures on December 20, 2021.

8	See page 34 for additional information.

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1	A project is classified as Construction in Progress when (1) construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and (2) capitalized interest has commenced.

2	Includes income (loss) and interest carry on debt and equity investment.

3	Represents percentage leased as of January 25, 2019 including leases with future commencement dates.

4	Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.

5	Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2018. See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

6	Project is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.

7	The increase in the Estimated Total Investment relates primarily to the costs of executing a thirty year lease on all of the office space plus costs associated with enhancements to the retail component of the project.

8	Excludes residential units.

9

Under the joint venture agreement, if the project is funded with 100% equity, the Company has agreed to fund 50% of its partner's equity requirement, in the form of preferred equity. The Company will fund an aggregate of approximately $25.4 million at a per annum interest rate of LIBOR plus 3.0% and receive priority distributions from all distributions to its partner until the principal and interest are repaid in full. As of December 31, 2018, the Company had funded an aggregate of $22.6 million.

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1	Excludes the existing square footage related to in-service properties being held for future re-development listed on pages 19-22.

2	The Company acquired land parcels at its Carnegie Center property on January 10, 2019 for a purchase price of approximately $42.9 million. The seller will be entitled to receive additional payments in the future aggregating approximately $8.6 million, which are contingent on the development of each of the parcels.

3	The Company closed on a ground lease on the Platform 16 site which is fully entitled for approximately 1.1 million square feet of future development. In February 2020 the Company will have an option for 12-months to acquire the land at a fixed cost of $134.8 million.

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1	Total square feet of properties placed (and partially placed) in-service in Q4 2018 consists of 43,902 square feet at 191 Spring Street and 801,782 square feet at Salesforce Tower.

2	Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,324,028 square feet of second generation leases that commenced in Q4 2018, leases for 1,164,428 square feet were signed in prior periods.

3	Total transaction costs include tenant improvements and leasing commissions but exclude free rent concessions.

4	Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 879,438 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying "swing space").

5	Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 879,438 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying "swing space").

6	Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

7

Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 159,600.

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	Includes 100% of the rentable square footage of the Company's In-Service Properties. For additional detail relating to the Company's In-Service Properties, see pages 19-22.

3	Excludes approximately $86 of revenue from retail tenants that is included in Retail.

4	See page 58 for additional information.

5	See page 60 for additional information.

6	BXP's Share of Net Operating Income (NOI) (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP's Share of NOI (excluding termination income), see page 8.

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1	Includes retail space.

2	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3	Excludes retail space.

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1	Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

2	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3	This is a retail property.

4	This is an unconsolidated joint venture property.

5	Not included in the Same Property analysis.

6	Property held for redevelopment.

7	On January 24, 2019, the Company completed the sale of this property. For additional information, reference the Company's fourth quarter earnings press release.

8	Excludes Hotel and Residential properties. For additional detail, see page 18.

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	As of December 31, 2018, the Company had commenced revenue recognition on approximately 580,000 square feet of the approximately 886,000 square feet leased to salesforce.com.

3	Represents leases signed with occupancy commencing in the future.

4	Subject to adjustment based on final building design, which is currently estimated to be approximately 740,000 rentable square feet, see page 13.

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1	Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Includes 100% of joint venture properties. Does not include residential units and hotel.

2	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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1	All unsecured senior notes are rated A- (stable), BBB+ (stable) and Baa1 (stable) by S&P, Fitch and Moody's, respectively.

2	Values based on December 31, 2018 closing price of $112.55 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.

3	Amount is calculated based on the Company's percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 32.

4	Amount is calculated based on the outside partners' percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 30.

5	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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1	Excludes unconsolidated joint ventures. For information on BXP's share of unconsolidated joint venture debt, see page 32.

2	The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.

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1

Capitalized Property Value for senior notes issued prior to December 4, 2017 is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized property value for senior notes issued on or after December 4, 2017 is determined for each property and is the greater of (a) annualized EBITDA capitalized at 7.0% and (b) the undepreciated book value as determined under GAAP.

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	For disclosures related to the calculation of BXP's share from unconsolidated joint ventures for the three months ended December 31, 2018, see pages 32 and 59.

3	For disclosures related to the calculation of Partners' share from consolidated joint ventures for the three months ended December 31, 2018, see pages 30 and 58.

4	BXP's Share of EBITDAre is annualized and calculated as the product of such amount for the quarter multiplied by four (4).

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1	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2	For a qualitative reconciliation of BXP's Share of EBITDAre – cash, see page 28.

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1	Certain balances contain amounts that eliminate in consolidation.

2	On January 18, 2019, the joint venture agreement was amended and the partner exercised its right to cause the Company to purchase on April 1, 2019 its 5% ownership interest and promoted interest in the venture.

3	Amount excludes preferred shareholders' capital of approximately $0.1 million.

4	Amounts represent the partners' share based on their respective ownership percentage.

5	Amounts adjusted for basis differentials.

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1	Amounts represent the partners' share based on their respective ownership percentage and is adjusted for basis differentials and the allocations of management and other fees and interest to BXP.

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1	Amounts represent BXP's share based on its ownership percentage.

2	The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees.

3	On January 24, 2019, the joint venture extended the loan maturity to November 17, 2020.

4	The Company has provided $80.0 million of mortgage financing to the joint venture. The loan has been reflected as Related Party Note Receivable on the Company's Consolidated Balance Sheets.

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1

Annapolis Junction includes four in-service properties and two undeveloped land parcels. On December 31, 2018 the Company and its partner in the joint venture entered into a distribution agreement whereby the joint venture distributed one of the four in-service properties to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. Mortgage indebtedness at the time of the distribution totaled $45.4 million including accrued interest. The gain on distribution of real estate is included within income from unconsolidated joint ventures in the Company's consolidated statements of operations.

2	Includes The Hub on Causeway, 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility and 3 Hudson Boulevard.

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

4	The Company's purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this venture.

5	Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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1	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.

3	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4	Includes square feet expiring on the last day of the current quarter.

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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	Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

3	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

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1	Amounts represent the partners' share based on their respective ownership percentage.

2	Capitalized fees are eliminated in consolidation and recognized over the life of the asset as depreciation and amortization are added back to the Company's net income.

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1

Annapolis Junction includes four in-service properties and two undeveloped land parcels. On December 31, 2018 the Company and its partner in the joint venture entered into a distribution agreement whereby the joint venture distributed one of the four in-service properties to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. Mortgage indebtedness at the time of the distribution totaled $45.4 million including accrued interest. The gain on distribution of real estate is included within income from unconsolidated joint ventures in the Company's consolidated statements of operations.

2	Includes The Hub on Causeway, 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility and 3 Hudson Boulevard.

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

4	The Company's purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this venture.

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•	Net income attributable to common shareholders of $148.5 million, or $0.96 per diluted share (EPS), growth of 43% compared to $103.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2017, primarily due to asset sales during the fourth quarter of 2018.

•	Funds from Operations (FFO) of $245.7 million, or $1.59 per diluted share. This reflects FFO growth of 7% compared to FFO of $230.1 million, or $1.49 per diluted share, for the quarter ended December 31, 2017, primarily due to higher revenue.

◦	FFO of $1.59 per diluted share was equal to the mid-point of the Company's fourth quarter guidance provided on October 30, as updated on December 11, 2018, when the Company announced the $0.10 per diluted share loss from early extinguishment of debt related to the early redemption of $700.0 million of 5.875% senior notes due 2019.

◦	Projected EPS for 2019 of $3.05 - $3.17 per diluted share, which would reflect a decrease in EPS of $0.59 at the midpoint compared to FY 2018. FY 2018 included a $0.99 per diluted share gain related to asset sales which is not projected in FY 2019 guidance.

◦	Projected FFO for 2019 of $6.88 - $7.00 per diluted share, which would reflect FFO growth of 10% at the midpoint as compared to FY 2018.

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•	Net income attributable to common shareholders of $572.3 million, or $3.70 per diluted share (EPS), compared to $451.9 million, or $2.93 per diluted share, for FY 2017.

•

FFO of $974.5 million, or $6.30 per diluted share, compared to FFO of $959.4 million, or $6.22 per diluted share, for the year ended December 31, 2017. FFO of $6.30 per diluted share was equal to the mid-point of the Company's FY 2018 guidance provided on October 30, as updated on December 11, 2018, when the Company announced the $0.10 per diluted share loss from early extinguishment of debt related to the early redemption of $700.0 million of 5.875% senior notes due 2019.

•	Delivered and placed in-service 2.3 million square feet (sf) of new developments representing $1.5 billion of investment, including Salesforce Tower in San Francisco, California, Proto Kendall Square in Cambridge, Massachusetts; Signature at Reston in Reston, Virginia and 191 Spring Street in Lexington, Massachusetts. The commercial developments are 100% leased.

•	Continued 5.3 million square feet of additional developments, representing a total estimated investment of $2.7 billion. The commercial developments are 78% pre-leased.

•	Acquired Santa Monica Business Park, a 1.2 million square foot office park located in Santa Monica, California in a joint venture; and entered into a joint venture to acquire a development site at 3 Hudson Boulevard in New York, New York that can accommodate up to 2.0 million square feet of future development.

•	Signed leases for 7.2 million square feet during the year, marking one of the strongest leasing years in the Company’s history.

•	Increased portfolio occupancy 70 bps year-over-year to 91.4% for the Company’s in-service office properties.

•	Increased the regular quarterly dividend 18.75% to $0.95 per share of common stock in the third quarter, representing the largest quarterly dividend increase in the Company's history.

•

Ranked in the top quadrant of the 2018 Global Real Estate Sustainability Benchmark (GRESB®) assessment, earning a seventh consecutive “Green Star” recognition and the highest GRESB 5-star Rating.  Also in 2018, the Company signed a renewable energy agreement for the power consumption at 33 properties totaling 15 million square feet, which will reduce the carbon emissions from the Company’s Massachusetts operations by 78%.

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Entered into an agreement with an affiliate of TMG Partners (“TMG”) to develop Platform 16, an urban campus in downtown San Jose, California, which is located within walking distance of the Diridon Station, San Jose’s intermodal transportation hub and adjacent to Google’s planned eight million square foot transit village. Starting in January 2019, the Company is making ground rent payments to TMG through February, 2020 totaling $5.5 million. In February 2020, the Company will have an option for 12-months to acquire the land at a fixed price.

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•	Signed three long-term leases at its 399 Park Avenue property located in midtown New York City, totaling approximately 550,000 sf, which brings the property to approximately 93% leased.

•	Completed a $1.0 billion green bond offering of 4.500% unsecured senior notes due 2028 and utilized $700 million of the proceeds to redeem its 5.875% senior notes due in 2019.

•	Completed and fully placed in-service Salesforce Tower, its 1.4 million square foot Class A office project in San Francisco, California on December 1, 2018. The property is 100% leased.

•	Completed and fully placed in-service 191 Spring Street, its 171,000 square foot Class A office redevelopment project in Lexington, Massachusetts on November 9, 2018. The property is 100% leased.

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Entered into a distribution agreement on December 31, 2018 with its partner in a joint venture in which the Company has a 50% interest, whereby the joint venture distributed its Annapolis Junction Building One, a 118,000 sf property, to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. The Company recognized a gain on sale of real estate totaling approximately $8.3 million.

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Completed the sale of a 41.0-acre parcel of land at its Tower Oaks property in Rockville, Maryland for a gross sale price of approximately $46.0 million. Net cash proceeds totaled approximately $25.9 million, resulting in a gain on sale of real estate totaling approximately $15.7 million. The Company has agreed to provide seller financing to the buyer totaling $19.5 million, which matures on December 20, 2021.

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Completed the sale of 6595 Springfield Center Drive (TSA Headquarters), a 634,000 sf development project in Springfield, Virginia on December 13, 2018, for a sale price of approximately $98.1 million, consisting of the land and project costs incurred to date. Concurrently with the sale, the Company agreed to act as development manager and has guaranteed the completion of the project. The company will earn a development fee, guarantee fees and a tenant improvement management fee and has the right to collect any contingency funds that are included but not used in the construction of the project. The estimated total project costs including the land are approximately $313.7 million. Because the carrying value of the property exceeded the estimated net sales price, the Company recognized an impairment loss totaling approximately $8.7 million in the fourth quarter 2018.

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Completed the sale of 1333 New Hampshire Avenue, a 315,000 square foot property in Washington, DC on November 30, 2018, for a gross sale price of approximately $142.0 million, including the retention of a $5.5 million payment by the anchor tenant due in January 2020. Net cash proceeds totaled approximately $133.7 million, resulting in a gain on sale of real estate totaling approximately $44.4 million.

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A joint venture in which the Company has a 50% interest extended the loan collateralized by its Annapolis Junction Building Six property. At the time of the extension, the outstanding balance of the loan totaled approximately $13.1 million and was scheduled to mature on November 17, 2018. The extended loan has a total commitment amount of approximately $14.3 million, bears interest at a variable rate equal to LIBOR plus 2.00% per annum and is scheduled to mature on November 17, 2020.

•	Completed the sale of 2600 Tower Oaks Boulevard, a 179,000 sf property in Rockville, Maryland on January 24, 2019 for a gross sales price of approximately $22.7 million. The Company recognized an impairment loss totaling approximately $3.1 million during the fourth quarter 2018 as a result of the carrying value of the property exceeding its fair value.

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Amended the venture agreement the Company has with its partner in the consolidated entity that owns Salesforce Tower on January 18, 2019. Under the amendment, the partner exercised its right to cause the Company to purchase the partner's promoted profits interest in Salesforce Tower for cash totaling approximately $187 million net of the repayment of the Company's preferred equity. As part of the original agreement the partner was required to contribute 5% of the equity and was entitled to receive an additional promoted payment based on the success of the property.

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Exercised its right to acquire land parcels at Carnegie Center in Princeton, New Jersey on January 10, 2019, for a purchase price of approximately $42.9 million. The seller will be entitled to receive additional payments in the future aggregating approximately $8.6 million, which are contingent on the development of each of the parcels. The land parcels could support approximately 1.7 million sf of development.

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(1)

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) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

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