UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): October 27, 2020
(Exact Name of Registrants As Specified in its Charter)
| Boston Properties, Inc. | |||||||||||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
| Boston Properties Limited Partnership | |||||||||||
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||
(Address of Principal Executive Offices) (Zip Code)
(617 ) 236-3300
(Registrants’ 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 registrants under any of the following provisions (see General Instruction A.2. below):
Securities registered pursuant to Section 12(b) of the Act:
| Registrant | Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||
| Boston Properties, Inc. | |||||||||||
| Boston Properties, Inc. | |||||||||||
| of 5.25% Series B Cumulative Redeemable Preferred Stock, par value $0.01 per share | |||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Boston Properties, Inc.:
Emerging growth company ☐
Boston Properties Limited Partnership:
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Boston Properties, Inc. ☐ Boston Properties Limited Partnership ☐
Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02 - “Results of Operations and Financial Condition” is being furnished. Such information, including Exhibits 99.1 and 99.2 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 Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
On October 27, 2020, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the third quarter of 2020. 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.
(d) Exhibits.
| Exhibit No. | Description | |||||||
| *99.1 | ||||||||
| *99.2 | ||||||||
| *101.SCH | Inline XBRL Taxonomy Extension Schema Document. | |||||||
| *101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | |||||||
| *101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. | |||||||
| *101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | |||||||
| *101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. | |||||||
| *104 | Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*). | |||||||
______________
* Filed herewith.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.
BOSTON PROPERTIES, INC. | |||||
By: | /s/ MICHAEL E. LABELLE | ||||
Michael E. LaBelle | |||||
Executive Vice President, Chief Financial Officer | |||||
and Treasurer | |||||
BOSTON PROPERTIES LIMITED PARTNERSHIP | |||||
By: Boston Properties, Inc., its General Partner | |||||
By: | /s/ MICHAEL E. LABELLE | ||||
Michael E. LaBelle | |||||
Executive Vice President, Chief Financial Officer | |||||
and Treasurer | |||||
Date: October 27, 2020
Exhibit 99.2
BOSTON PROPERTIES ANNOUNCES THIRD QUARTER 2020 RESULTS; REPORTS EPS OF $0.58 AND FFO PER SHARE OF $1.57
Signs 811,000 Square Feet of Leasing in Q3 With a Weighted Average Lease Term of Seven Years
BOSTON, MA, October 27, 2020 - Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded developer, owner and manager of Class A office properties in the United States, reported results today for the third quarter ended September 30, 2020.
Financial highlights for the third quarter include:
•Net income attributable to common shareholders of $89.9 million, or $0.58 per diluted share (EPS), compared to $107.8 million, or $0.70 per diluted share, for the quarter ended September 30, 2019. The third quarter of 2020 included a $0.06 per share charge to revenue related to the write-off of accrued rent and accounts receivable of tenants primarily in the retail, fitness and entertainment sectors.
•Funds from Operations (FFO) of $244.0 million, or $1.57 per diluted share, compared to FFO of $253.6 million, or $1.64 per diluted share, for the quarter ended September 30, 2019. The third quarter of 2020 included a $0.06 per share charge to revenue related to the write-off of accrued rent and accounts receivable of tenants primarily in the retail, fitness and entertainment sectors.
Third quarter and recent business highlights include:
•Completed 811,000 square feet of leases and renewals in the third quarter with a weighted average lease term of approximately seven years. Notable leases signed in the quarter include a 13-year expansion and a long-term extension with Microsoft Corporation in Reston, Virginia totaling 186,000 square feet and a new, 14-year, 82,000 square foot lease with Columbia Threadneedle Investments at Atlantic Wharf in Boston, Massachusetts.
•In addition, the Company recently signed a 196,000 square foot, 20-year lease with the Volkswagen Group of America at BXP’s 1.1 million square foot development in the new phase of Reston Town Center in Reston, Virginia. With this new lease, the development is 85% pre-leased. Further details can be found in the press release issued today.
•Collected 99% of its total rent payments from office tenants in the third quarter. Rent collections from all commercial tenants, including base rent from retail tenants, were 97% in total in Q3.
•Completed and fully placed in-service two developments in the third quarter including Hub50House, a 320,000 square foot residential property in Boston, Massachusetts which the Company has a 50% ownership and The Skylyne, a 331,000 square foot residential property in Oakland, California.
•Entered into an agreement with an existing joint venture partner for the future development of a 1.2 million square foot site in Waltham, Massachusetts, a popular submarket of Boston for leading and emerging companies in the life sciences, biotechnology and technology sectors. The agreement allows for the phased development of office and lab properties across 41-
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acres. Boston Properties will serve as the development manager and expects to be a majority owner of the properties. This agreement builds on Boston Properties’ current footprint of 4.3 million square feet of Class A Office and lab properties in this submarket.
•Completed the acquisition of a 50% interest in Beach Cities Media Center, a 6.4-acre land site on the Rosecrans Corridor of the El Segundo submarket of Los Angeles, California for a purchase price of approximately $21.2 million. Located in close proximity to the desirable beach cities of Manhattan, Hermosa and Redondo as well as the Palos Verdes peninsula, El Segundo is one of the most in-demand locations for Fortune 500 and emerging office tenants in the South Bay of Los Angeles. The site is fully entitled to support the future development of approximately 275,000 square feet of Class A creative office space.
The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended September 30, 2020. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.
Boston Properties will host a conference call on Wednesday, October 28, 2020 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2020 results, provide a business update pertaining to the current COVID-19 pandemic and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 5198453. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 51984533. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.
Additionally, a copy of Boston Properties’ third quarter 2020 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at investors.bxp.com.
Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.2 million square feet and 196 properties, including seven properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.
This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. These statements are based on our current expectations of future events. 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. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions or restrictive measures
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implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; whether new or existing actions/or measures result in increasing unemployment that impacts the ability of our residential tenants to generate sufficient income to pay, or makes them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; and the effectiveness or lack of effectiveness of governmental relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, 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, except as may be required by law.
Financial tables follow.
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BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||
| (in thousands, except for share and par value amounts) | |||||||||||
| ASSETS | |||||||||||
| Real estate, at cost | $ | 21,554,453 | $ | 21,458,412 | |||||||
| Construction in progress | 769,846 | 789,736 | |||||||||
| Land held for future development | 446,392 | 254,828 | |||||||||
| Right of use assets - finance leases | 237,382 | 237,394 | |||||||||
| Right of use assets - operating leases | 146,973 | 148,640 | |||||||||
| Less: accumulated depreciation | (5,413,709) | (5,266,798) | |||||||||
| Total real estate | 17,741,337 | 17,622,212 | |||||||||
| Cash and cash equivalents | 1,714,783 | 644,950 | |||||||||
| Cash held in escrows | 50,006 | 46,936 | |||||||||
| Investments in securities | 34,934 | 36,747 | |||||||||
| Tenant and other receivables, net | 76,330 | 112,807 | |||||||||
| Related party note receivable, net | 77,592 | 80,000 | |||||||||
| Note receivables, net | 25,304 | 15,920 | |||||||||
| Accrued rental income, net | 1,111,078 | 1,038,788 | |||||||||
| Deferred charges, net | 644,036 | 689,213 | |||||||||
| Prepaid expenses and other assets | 106,524 | 41,685 | |||||||||
| Investments in unconsolidated joint ventures | 1,377,291 | 955,647 | |||||||||
| Total assets | $ | 22,959,215 | $ | 21,284,905 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Liabilities: | |||||||||||
| Mortgage notes payable, net | $ | 2,912,494 | $ | 2,922,408 | |||||||
| Unsecured senior notes, net | 9,636,397 | 8,390,459 | |||||||||
| Unsecured line of credit | — | — | |||||||||
| Unsecured term loan, net | 499,270 | 498,939 | |||||||||
| Lease liabilities - finance leases | 233,288 | 224,042 | |||||||||
| Lease liabilities - operating leases | 201,337 | 200,180 | |||||||||
| Accounts payable and accrued expenses | 345,959 | 377,553 | |||||||||
| Dividends and distributions payable | 171,070 | 170,713 | |||||||||
| Accrued interest payable | 88,826 | 90,016 | |||||||||
| Other liabilities | 369,932 | 387,994 | |||||||||
| Total liabilities | 14,458,573 | 13,262,304 | |||||||||
| Commitments and contingencies | — | — | |||||||||
| Redeemable deferred stock units | 5,604 | 8,365 | |||||||||
| Equity: | |||||||||||
| Stockholders’ equity attributable to Boston Properties, Inc.: | |||||||||||
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | — | — | |||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at September 30, 2020 and December 31, 2019 | 200,000 | 200,000 | |||||||||
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) | |||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||
| (in thousands, except for share and par value amounts) | |||||||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,715,200 and 154,869,198 issued and 155,636,300 and 154,790,298 outstanding at September 30, 2020 and December 31, 2019, respectively | 1,556 | 1,548 | |||||||||
| Additional paid-in capital | 6,348,076 | 6,294,719 | |||||||||
| Dividends in excess of earnings | (364,720) | (760,523) | |||||||||
Treasury common stock at cost, 78,900 shares at September 30, 2020 and December 31, 2019 | (2,722) | (2,722) | |||||||||
| Accumulated other comprehensive loss | (52,622) | (48,335) | |||||||||
| Total stockholders’ equity attributable to Boston Properties, Inc. | 6,129,568 | 5,684,687 | |||||||||
| Noncontrolling interests: | |||||||||||
| Common units of the Operating Partnership | 634,796 | 600,860 | |||||||||
| Property partnerships | 1,730,674 | 1,728,689 | |||||||||
| Total equity | 8,495,038 | 8,014,236 | |||||||||
| Total liabilities and equity | $ | 22,959,215 | $ | 21,284,905 | |||||||
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | |||||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||
| (in thousands, except for per share amounts) | ||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||
| Lease | $ | 666,674 | $ | 692,225 | $ | 2,006,904 | $ | 2,051,665 | ||||||||||||||||||
| Parking and other | 16,327 | 25,582 | 54,777 | 76,807 | ||||||||||||||||||||||
| Hotel revenue | 90 | 13,014 | 7,014 | 36,796 | ||||||||||||||||||||||
| Development and management services | 7,281 | 10,303 | 23,285 | 29,566 | ||||||||||||||||||||||
Direct reimbursements of payroll and related costs from management services contracts | 2,896 | 2,429 | 8,617 | 8,227 | ||||||||||||||||||||||
| Total revenue | 693,268 | 743,553 | 2,100,597 | 2,203,061 | ||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||
| Operating | ||||||||||||||||||||||||||
| Rental | 258,261 | 265,603 | 761,014 | 781,091 | ||||||||||||||||||||||
| Hotel | 3,164 | 8,743 | 11,958 | 25,686 | ||||||||||||||||||||||
| General and administrative | 27,862 | 31,147 | 102,059 | 107,980 | ||||||||||||||||||||||
| Payroll and related costs from management services contracts | 2,896 | 2,429 | 8,617 | 8,227 | ||||||||||||||||||||||
| Transaction costs | 307 | 538 | 1,254 | 1,415 | ||||||||||||||||||||||
| Depreciation and amortization | 166,456 | 165,862 | 515,738 | 507,867 | ||||||||||||||||||||||
| Total expenses | 458,946 | 474,322 | 1,400,640 | 1,432,266 | ||||||||||||||||||||||
| Other income (expense) | ||||||||||||||||||||||||||
| (Loss) income from unconsolidated joint ventures | (6,873) | (649) | (5,410) | 47,528 | ||||||||||||||||||||||
| (Losses) gains on sales of real estate | (209) | (15) | 613,723 | 766 | ||||||||||||||||||||||
| Interest and other income (loss) | (45) | 7,178 | 4,277 | 14,546 | ||||||||||||||||||||||
| Gains from investments in securities | 1,858 | 106 | 965 | 4,240 | ||||||||||||||||||||||
| Loss from early extinguishment of debt | — | (28,010) | — | (28,010) | ||||||||||||||||||||||
| Impairment loss | — | — | — | (24,038) | ||||||||||||||||||||||
| Interest expense | (110,993) | (106,471) | (319,726) | (309,837) | ||||||||||||||||||||||
| Net income | 118,060 | 141,370 | 993,786 | 475,990 | ||||||||||||||||||||||
| Net income attributable to noncontrolling interests | ||||||||||||||||||||||||||
| Noncontrolling interests in property partnerships | (15,561) | (18,470) | (34,280) | (54,782) | ||||||||||||||||||||||
Noncontrolling interest—common units of the Operating Partnership | (10,020) | (12,504) | (97,090) | (43,133) | ||||||||||||||||||||||
| Net income attributable to Boston Properties, Inc. | 92,479 | 110,396 | 862,416 | 378,075 | ||||||||||||||||||||||
| Preferred dividends | (2,625) | (2,625) | (7,875) | (7,875) | ||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 107,771 | $ | 854,541 | $ | 370,200 | ||||||||||||||||||
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: | ||||||||||||||||||||||||||
| Net income | $ | 0.58 | $ | 0.70 | $ | 5.49 | $ | 2.40 | ||||||||||||||||||
| Weighted average number of common shares outstanding | 155,645 | 154,577 | 155,349 | 154,553 | ||||||||||||||||||||||
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: | ||||||||||||||||||||||||||
| Net income | $ | 0.58 | $ | 0.70 | $ | 5.49 | $ | 2.39 | ||||||||||||||||||
Weighted average number of common and common equivalent shares outstanding | 155,670 | 154,820 | 155,447 | 154,847 | ||||||||||||||||||||||
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
| 2020 | 2019 | 2020 | 2019 | ||||||||||||||||||||
| (in thousands, except for per share amounts) | |||||||||||||||||||||||
Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 107,771 | $ | 854,541 | $ | 370,200 | |||||||||||||||
| Add: | |||||||||||||||||||||||
Preferred dividends | 2,625 | 2,625 | 7,875 | 7,875 | |||||||||||||||||||
Noncontrolling interest - common units of the Operating Partnership | 10,020 | 12,504 | 97,090 | 43,133 | |||||||||||||||||||
Noncontrolling interests in property partnerships | 15,561 | 18,470 | 34,280 | 54,782 | |||||||||||||||||||
| Net income | 118,060 | 141,370 | 993,786 | 475,990 | |||||||||||||||||||
| Add: | |||||||||||||||||||||||
Depreciation and amortization expense | 166,456 | 165,862 | 515,738 | 507,867 | |||||||||||||||||||
Noncontrolling interests in property partnerships’ share of depreciation and amortization | (15,833) | (17,402) | (55,940) | (53,273) | |||||||||||||||||||
Company’s share of depreciation and amortization from unconsolidated joint ventures | 20,413 | 13,745 | 59,757 | 43,993 | |||||||||||||||||||
Corporate-related depreciation and amortization | (444) | (411) | (1,399) | (1,218) | |||||||||||||||||||
Impairment loss | — | — | — | 24,038 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
| Gains on sales of real estate included within (loss) income from unconsolidated joint ventures | — | (487) | 5,946 | 47,270 | |||||||||||||||||||
| (Losses) gains on sales of real estate | (209) | (15) | 613,723 | 766 | |||||||||||||||||||
Noncontrolling interests in property partnerships | 15,561 | 18,470 | 34,280 | 54,782 | |||||||||||||||||||
Preferred dividends | 2,625 | 2,625 | 7,875 | 7,875 | |||||||||||||||||||
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) | 270,675 | 282,571 | 850,118 | 886,704 | |||||||||||||||||||
| Less: | |||||||||||||||||||||||
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations | 26,697 | 28,940 | 85,095 | 90,792 | |||||||||||||||||||
Funds from operations attributable to Boston Properties, Inc. common shareholders | $ | 243,978 | $ | 253,631 | $ | 765,023 | $ | 795,912 | |||||||||||||||
Boston Properties, Inc.’s percentage share of funds from operations - basic | 90.14 | % | 89.76 | % | 89.99 | % | 89.76 | % | |||||||||||||||
| Weighted average shares outstanding - basic | 155,645 | 154,577 | 155,349 | 154,553 | |||||||||||||||||||
FFO per share basic | $ | 1.57 | $ | 1.64 | $ | 4.92 | $ | 5.15 | |||||||||||||||
| Weighted average shares outstanding - diluted | 155,670 | 154,820 | 155,447 | 154,847 | |||||||||||||||||||
FFO per share diluted | $ | 1.57 | $ | 1.64 | $ | 4.92 | $ | 5.14 | |||||||||||||||
(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.
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 order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.
BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES
| % Leased by Location | |||||||||||
| September 30, 2020 | December 31, 2019 | ||||||||||
| Boston | 94.6 | % | 95.9 | % | |||||||
| Los Angeles | 96.7 | % | 96.7 | % | |||||||
| New York | 90.5 | % | 92.9 | % | |||||||
| San Francisco | 91.6 | % | 93.7 | % | |||||||
| Washington, DC | 84.3 | % | 87.6 | % | |||||||
| Total Portfolio | 91.1 | % | 93.0 | % | |||||||
AT THE COMPANY
Michael LaBelle
Executive Vice President,
Chief Financial Officer and Treasurer
(617) 236-3352
Sara Buda
Vice President, Investor Relations
(617) 236-3429
sbuda@bxp.com
# # #
Exhibit 99.1
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2020
THE COMPANY
Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets - Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s complete portfolio totals 51.2 million square feet and 196 properties, including seven properties under construction/redevelopment, and consists of 177 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner. The Company has earned eight consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.
FORWARD-LOOKING STATEMENTS
This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. These statements are based on our current expectations of future events. 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. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; whether new or existing actions/or measures continue to result in increasing unemployment that impact the ability of our residential tenants to generate sufficient income to pay, or make them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; the effectiveness or lack of effectiveness of government relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19; and the extent of construction delays on our development/redevelopment projects due to work-stoppage orders or disruptions in the supply of materials which could result in our failure to meet the development milestones set forth in any applicable lease agreement, delay the commencement or completion of construction and our anticipated lease-up plans for a development/redevelopment project or our overall development pipeline that may cause returns on investment to be less than projected, and/or increase the costs of construction of new or existing projects. In addition to the risks specific to COVID-19, other 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, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, 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. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. 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.
NON-GAAP FINANCIAL MEASURES
This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements 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, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 55.
The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company). Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures. The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 59.
GENERAL INFORMATION
| Corporate Headquarters | Trading Symbol | Investor Relations | Inquiries | ||||||||
| 800 Boylston Street | BXP | Boston Properties, Inc. | Inquiries should be directed to | ||||||||
| Suite 1900 | 800 Boylston Street, Suite 1900 | Sara Buda | |||||||||
| Boston, MA 02199 | Stock Exchange Listing | Boston, MA 02199 | Vice President, Investor Relations | ||||||||
| www.bxp.com | New York Stock Exchange | investors.bxp.com | at 617.236.3429 or | ||||||||
| (t) 617.236.3300 | investorrelations@bxp.com | sbuda@bxp.com | |||||||||
| (f) 617.236.3311 | (t) 617.236.3429 | ||||||||||
| Michael E. LaBelle | |||||||||||
| Executive Vice President, Chief Financial Officer | |||||||||||
| at 617.236.3352 or | |||||||||||
| mlabelle@bxp.com | |||||||||||
(Cover photo: Rendering of Hub50House, Boston, MA which was placed in-service in Q3 2020.)
| Q3 2020 | ||||
| Table of contents | |||||
| Page | |||||
| OVERVIEW | |||||
| Company Profile | |||||
| FINANCIAL INFORMATION | |||||
| COVID-19 Impact | |||||
| Financial Highlights | |||||
| Consolidated Balance Sheets | |||||
| Consolidated Income Statements | |||||
| Funds From Operations (FFO) | |||||
| Funds Available for Distribution (FAD) | |||||
| Net Operating Income (NOI) | |||||
| Same Property Net Operating Income (NOI) by Reportable Segment | |||||
| Capital Expenditures, Tenant Improvement Costs and Leasing Commissions | |||||
| Acquisitions and Dispositions | |||||
| DEVELOPMENT ACTIVITY | |||||
| Construction in Progress | |||||
| Land Parcels and Purchase Options | |||||
| LEASING ACTIVITY | |||||
| Leasing Activity | |||||
| PROPERTY STATISTICS | |||||
| Portfolio Overview | |||||
| Residential and Hotel Performance | |||||
| In-Service Property Listing | |||||
| Top 20 Tenants Listing and Portfolio Tenant Diversification | |||||
| Occupancy by Location | |||||
| DEBT AND CAPITALIZATION | |||||
| Capital Structure | |||||
| Debt Analysis | |||||
| Senior Unsecured Debt Covenant Compliance Ratios | |||||
Net Debt to EBITDAre | |||||
| Debt Ratios | |||||
| JOINT VENTURES | |||||
| Consolidated Joint Ventures | |||||
| Unconsolidated Joint Ventures | |||||
| LEASE EXPIRATION ROLL-OUT | |||||
| Total In-Service Properties | |||||
| Boston | |||||
| Los Angeles | |||||
| New York | |||||
| San Francisco | |||||
| Washington, DC | |||||
| CBD | |||||
| Suburban | |||||
| RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS | |||||
| Research Coverage | |||||
| Definitions | |||||
| Reconciliations | |||||
| Consolidated Income Statement - Prior Year | |||||
| Funds From Operations (FFO) - Prior Year | |||||
| Funds Available for Distribution (FAD) - Prior Year | |||||
| Q3 2020 | ||||
| Company profile | |||||
SNAPSHOT
(as of September 30, 2020)
| Fiscal Year-End | December 31 | ||||
| Total Properties (includes unconsolidated joint ventures) | 196 | ||||
| Total Square Feet (includes unconsolidated joint ventures) | 51.2 million | ||||
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1 | 173.1 million | ||||
| Closing Price, at the end of the quarter | $80.30 per share | ||||
| Dividend - Quarter/Annualized | $0.98/$3.92 per share | ||||
| Dividend Yield | 4.9% | ||||
Consolidated Market Capitalization 1 | $27.1 billion | ||||
BXP’s Share of Market Capitalization 1, 2 | $27.1 billion | ||||
| Senior Debt Ratings | BBB+ (S&P); Baa1 (Moody’s) | ||||
STRATEGY
Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the key tenets of our business strategy are 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;
•invest in the highest quality buildings (primarily office) with unique amenities and desirable locations that are able to maintain high occupancy rates and achieve premium rental rates through economic cycles;
•maintain scale and a full-service real estate capability (leasing, development, construction and property management) in our markets 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 acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle, (3) provide superior service to our tenants and (4) develop and manage our assets in the most sustainable manner possible;
•be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing new properties in times of growth and selling assets at attractive prices, resulting in continuous portfolio refreshment;
•ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make new investments at opportune points in time; and
•foster a culture and reputation of integrity, excellence and purposefulness, making us the employer of choice for talented real estate professionals, the landlord and developer of choice for our customers, as well as the counterparty of choice for real estate industry participants.
MANAGEMENT
| Board of Directors | Management | |||||||||||||
| Joel I. Klein | Chairman of the Board | Owen D. Thomas | Chief Executive Officer | |||||||||||
| Owen D. Thomas | Chief Executive Officer | Douglas T. Linde | President | |||||||||||
| Douglas T. Linde | President | Raymond A. Ritchey | Senior Executive Vice President | |||||||||||
| Kelly A. Ayotte | Chair of the Compensation Committee | Michael E. LaBelle | Executive Vice President, Chief Financial Officer and Treasurer | |||||||||||
| Bruce W. Duncan | ||||||||||||||
| Karen E. Dykstra | Peter D. Johnston | Executive Vice President, Washington, DC Region | ||||||||||||
| Carol B. Einiger | Bryan J. Koop | Executive Vice President, Boston Region | ||||||||||||
| Diane J. Hoskins | Robert E. Pester | Executive Vice President, San Francisco Region | ||||||||||||
| Matthew J. Lustig | Chair of Nominating & Corporate Governance Committee | John F. Powers | Executive Vice President, New York Region | |||||||||||
| Frank D. Burt | Senior Vice President and Chief Legal Officer | |||||||||||||
| David A. Twardock | Chair of Audit Committee | Donna D. Garesche | Senior Vice President and Chief Human Resources Officer | |||||||||||
| William H. Walton, III | ||||||||||||||
| Michael R. Walsh | Senior Vice President and Chief Accounting Officer | |||||||||||||
| James J. Whalen | Senior Vice President and Chief Information & Technology Officer | |||||||||||||
____________________
1For additional detail, see page 28.
2For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
1
| Q3 2020 | ||||
| COVID-19 Impact | |||||
Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. Set forth below are the details related to the effects of the COVID-19 pandemic to the Company’s operations for the three months ended September 30, 2020.
(unaudited and dollars in thousands)
For the third quarter of 2020, Revenue was $693,268 and Net income attributable to Boston Properties, Inc. common shareholders was $89,854. For the third quarter of 2019, Revenue was $743,553 and Net income attributable to Boston Properties, Inc. common shareholders was $107,771.
BXP’s Share of Revenue1 for the third quarter of 2020 was $664,711, marking a decrease of $39,460 from $704,171 for Q3 2019. Included in BXP’s Share for Q3 2020 is an aggregate of $33,223 of primarily COVID-19 related decreases consisting of:
•$5,931 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,
•$3,790 of write-offs associated with accounts receivable2,,
•$10,578 decrease in parking and other revenue2,, and
•$12,924 decrease due to the closure of our only hotel (which re-opened on October 2, 2020).
Funds from Operations (“FFO”) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)1, 3 for Q3 2020 was $270,675, marking a decrease of $11,896 from $282,571 for Q3 2019. Included in Q3 2020 is an aggregate of $27,644 of BXP’s Share of primarily COVID-19 related decreases consisting of:
•$5,931 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,,
•$3,790 of write-offs associated with accounts receivable2,,
•$10,578 decrease in parking and other revenue2,, and
•$7,345 decrease in NOI due to the closure of our only hotel (which re-opened on October 2, 2020.)
BXP’s Share of Same Property NOI (excluding termination income)1, 4 was $377,504, marking a decrease of $37,030 from Q3 2019. Included in Q3 2020 is an aggregate of $27,472 of BXP’s Share of primarily COVID-19 related decreases consisting of:
•$5,931 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,,
•$3,790 of write-offs associated with accounts receivable2,,
•$10,406 decrease in parking and other revenue2,, and
•$7,345 decrease in NOI due to the closure of our only hotel (which re-opened on October 2, 2020).
BXP’s Share of Same Property NOI (excluding termination income) - cash1, 4 was $343,757, marking a decrease of $48,916 from Q3 2019. Included in Q3 2020 is an aggregate of $38,369 of BXP’s Share of primarily COVID-19 related decreases consisting of:
•$16,828 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,
•$3,790 of write-offs associated with accounts receivable2,,
•$10,406 decrease in parking and other revenue2,, and
•$7,345 decrease in NOI due to the closure of our only hotel (which re-opened on October 2, 2020).
Funds Available for Distribution (“FAD”)1, 5 was $153,481 for Q3 2020, a decrease of $38,439 from $191,920 for Q3 2019. The distributions to common shareholders and unitholders (excluding any special distributions) were $169,701 for Q3 2020. Included in Q3 2020 is an aggregate of $39,927 of BXP’s Share of primarily COVID-19 related decreases consisting of:
•$18,214 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,
•$3,790 of write-offs associated with accounts receivable2,,
•$10,578 decrease in parking and other revenue2,, and
•$7,345 decrease in NOI due to the closure of our only hotel (which re-opened on October 2, 2020).
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2For additional information, see page 59.
3For quantitative reconciliations of FFO for the three months ended September 30, 2020 and September 30, 2019, see pages 6 and 66, respectively.
4For a quantitative reconciliation for the three months ended September 30, 2020, see page 11.
5For quantitative reconciliations of FAD for the three months ended September 30, 2020 and September 30, 2019, see pages 7 and 67, respectively.
2
| Q3 2020 | ||||
| Financial highlights | |||||
(unaudited and in thousands, except ratios and per share amounts)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 266,525 | ||||||||||
| Net income attributable to Boston Properties, Inc. per share - diluted | $ | 0.58 | $ | 1.71 | ||||||||||
FFO attributable to Boston Properties, Inc. common shareholders 1 | $ | 243,978 | $ | 236,908 | ||||||||||
Diluted FFO per share 1 | $ | 1.57 | $ | 1.52 | ||||||||||
| Dividends per common share | $ | 0.98 | $ | 0.98 | ||||||||||
Funds available for distribution to common shareholders and common unitholders (FAD) 2 | $ | 153,481 | $ | 153,660 | ||||||||||
| Selected items: | ||||||||||||||
| Revenue | $ | 693,268 | $ | 654,773 | ||||||||||
| Recoveries from tenants | $ | 105,682 | $ | 98,393 | ||||||||||
| Service income from tenants | $ | 967 | $ | 1,115 | ||||||||||
BXP’s Share of revenue 3 | $ | 664,711 | $ | 638,485 | ||||||||||
BXP’s Share of straight-line rent 3 | $ | 40,478 | $ | 22,747 | ||||||||||
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3 | $ | (5,931) | $ | (26,325) | ||||||||||
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3 | $ | (3,790) | $ | (14,707) | ||||||||||
BXP’s Share of fair value lease revenue 3, 4 | $ | 979 | $ | 2,548 | ||||||||||
BXP’s Share of termination income 3 | $ | 2,850 | $ | 2,988 | ||||||||||
| Ground rent expense | $ | 3,455 | $ | 3,468 | ||||||||||
| Capitalized interest | $ | 13,463 | $ | 13,717 | ||||||||||
| Capitalized wages | $ | 3,409 | $ | 3,401 | ||||||||||
| (Loss) income from unconsolidated joint ventures | $ | (6,873) | $ | 1,832 | ||||||||||
BXP’s share of FFO from unconsolidated joint ventures 5 | $ | 13,540 | $ | 16,898 | ||||||||||
| Net income (loss) attributable to noncontrolling interests in property partnerships | $ | 15,561 | $ | (767) | ||||||||||
FFO attributable to noncontrolling interests in property partnerships 6 | $ | 31,394 | $ | 21,713 | ||||||||||
| Balance Sheet items: | ||||||||||||||
| Above-market rents (included within Prepaid Expenses and Other Assets) | $ | 5,640 | $ | 6,927 | ||||||||||
| Below-market rents (included within Other Liabilities) | $ | 29,272 | $ | 31,277 | ||||||||||
| Accrued rental income liability (included within Other Liabilities) | $ | 125,442 | $ | 125,887 | ||||||||||
| Ratios: | ||||||||||||||
Interest Coverage Ratio (excluding capitalized interest) 7 | 3.34 | 3.53 | ||||||||||||
Interest Coverage Ratio (including capitalized interest) 7 | 2.97 | 3.11 | ||||||||||||
Fixed Charge Coverage Ratio 7 | 2.47 | 2.68 | ||||||||||||
BXP’s Share of Net Debt to BXP’s Share of EBITDAre 8 | 7.32 | 7.38 | ||||||||||||
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 | (8.9) | % | (10.8) | % | ||||||||||
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 | (12.5) | % | (10.1) | % | ||||||||||
FAD Payout Ratio 2 | 110.57 | % | 110.44 | % | ||||||||||
| Operating Margins [(rental revenue - rental expense)/rental revenue] | 62.2 | % | 62.8 | % | ||||||||||
| Occupancy of In-Service Properties | 91.1 | % | 92.0 | % | ||||||||||
| Capitalization: | ||||||||||||||
| Consolidated Debt | $ | 13,048,161 | $ | 13,048,579 | ||||||||||
BXP’s Share of Debt 10 | $ | 12,966,235 | $ | 12,918,703 | ||||||||||
| Consolidated Market Capitalization | $ | 27,147,609 | $ | 28,892,634 | ||||||||||
| Consolidated Debt/Consolidated Market Capitalization | 48.06 | % | 45.16 | % | ||||||||||
BXP’s Share of Market Capitalization 10 | $ | 27,065,683 | $ | 28,762,758 | ||||||||||
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 | 47.91 | % | 44.91 | % | ||||||||||
_____________
1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 6.
2For 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.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
4Represents 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.
5For a quantitative reconciliation for the three months ended September 30, 2020, see page 37.
6For a quantitative reconciliation for the three months ended September 30, 2020, see page 34.
7For a quantitative reconciliation for the three months ended September 30, 2020 and June 30, 2020, see page 32.
8For a quantitative reconciliation for the three months ended September 30, 2020 and June 30, 2020, see page 31.
9For a quantitative reconciliation for the three months ended September 30, 2020, see page 11.
10For a quantitative reconciliation for September 30, 2020, see page 28.
3
| Q3 2020 | ||||
| Consolidated Balance Sheets | |||||
(unaudited and in thousands)
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| ASSETS | ||||||||||||||
| Real estate | 21,554,453 | $ | 21,267,915 | |||||||||||
| Construction in progress | 769,846 | 893,935 | ||||||||||||
| Land held for future development | 446,392 | 414,053 | ||||||||||||
| Right of use assets - finance leases | 237,382 | 237,394 | ||||||||||||
| Right of use assets - operating leases | 146,973 | 147,512 | ||||||||||||
| Less accumulated depreciation | (5,413,709) | (5,292,389) | ||||||||||||
| Total real estate | 17,741,337 | 17,668,420 | ||||||||||||
| Cash and cash equivalents | 1,714,783 | 1,691,047 | ||||||||||||
| Cash held in escrows | 50,006 | 300,608 | ||||||||||||
| Investments in securities | 34,934 | 32,848 | ||||||||||||
| Tenant and other receivables, net | 76,330 | 82,545 | ||||||||||||
| Related party note receivable, net | 77,592 | 78,520 | ||||||||||||
| Notes receivable, net | 25,304 | 25,480 | ||||||||||||
| Accrued rental income, net | 1,111,078 | 1,069,004 | ||||||||||||
| Deferred charges, net | 644,036 | 655,813 | ||||||||||||
| Prepaid expenses and other assets | 106,524 | 56,768 | ||||||||||||
| Investments in unconsolidated joint ventures | 1,377,291 | 1,339,724 | ||||||||||||
| Total assets | $ | 22,959,215 | $ | 23,000,777 | ||||||||||
| LIABILITIES AND EQUITY | ||||||||||||||
| Liabilities: | ||||||||||||||
| Mortgage notes payable, net | $ | 2,912,494 | $ | 2,915,852 | ||||||||||
| Unsecured senior notes, net | 9,636,397 | 9,633,577 | ||||||||||||
| Unsecured line of credit | — | — | ||||||||||||
| Unsecured term loan, net | 499,270 | 499,150 | ||||||||||||
| Lease liabilities- finance leases | 233,288 | 230,146 | ||||||||||||
| Lease liabilities - operating leases | 201,337 | 200,979 | ||||||||||||
| Accounts payable and accrued expenses | 345,959 | 328,292 | ||||||||||||
| Dividends and distributions payable | 171,070 | 171,077 | ||||||||||||
| Accrued interest payable | 88,826 | 95,274 | ||||||||||||
| Other liabilities | 369,932 | 373,281 | ||||||||||||
| Total liabilities | 14,458,573 | 14,447,628 | ||||||||||||
| Commitments and contingencies | — | — | ||||||||||||
| Redeemable deferred stock units | 5,604 | 6,003 | ||||||||||||
| Equity: | ||||||||||||||
| Stockholders’ equity attributable to Boston Properties, Inc.: | ||||||||||||||
| Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding | — | — | ||||||||||||
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at September 30, 2020 and June 30, 2020 | 200,000 | 200,000 | ||||||||||||
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,715,200 and 155,701,186 issued and 155,636,300 and 155,622,286 outstanding at September 30, 2020 and June 30, 2020, respectively | 1,556 | 1,556 | ||||||||||||
| Additional paid-in capital | 6,348,076 | 6,340,665 | ||||||||||||
| Dividends in excess of earnings | (364,720) | (302,511) | ||||||||||||
Treasury common stock at cost, 78,900 shares at September 30, 2020 and June 30, 2020 | (2,722) | (2,722) | ||||||||||||
| Accumulated other comprehensive loss | (52,622) | (54,921) | ||||||||||||
| Total stockholders’ equity attributable to Boston Properties, Inc. | 6,129,568 | 6,182,067 | ||||||||||||
| Noncontrolling interests: | ||||||||||||||
| Common units of the Operating Partnership | 634,796 | 640,491 | ||||||||||||
| Property partnerships | 1,730,674 | 1,724,588 | ||||||||||||
| Total equity | 8,495,038 | 8,547,146 | ||||||||||||
| Total liabilities and equity | $ | 22,959,215 | $ | 23,000,777 | ||||||||||
4
| Q3 2020 | ||||
Consolidated Income Statements 1 | |||||
(unaudited and in thousands, except per share amounts)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Revenue | ||||||||||||||
| Lease | $ | 666,674 | $ | 630,119 | ||||||||||
| Parking and other | 16,327 | 13,946 | ||||||||||||
| Hotel revenue | 90 | 99 | ||||||||||||
| Development and management services | 7,281 | 8,125 | ||||||||||||
| Direct reimbursements of payroll and related costs from management services contracts | 2,896 | 2,484 | ||||||||||||
| Total revenue | 693,268 | 654,773 | ||||||||||||
| Expenses | ||||||||||||||
| Operating | 120,833 | 109,448 | ||||||||||||
| Real estate taxes | 137,222 | 130,415 | ||||||||||||
| Demolition costs | 206 | (76) | ||||||||||||
| Hotel operating | 3,164 | 1,973 | ||||||||||||
General and administrative 2 | 27,862 | 37,743 | ||||||||||||
| Payroll and related costs from management services contracts | 2,896 | 2,484 | ||||||||||||
| Transaction costs | 307 | 332 | ||||||||||||
| Depreciation and amortization | 166,456 | 178,188 | ||||||||||||
| Total expenses | 458,946 | 460,507 | ||||||||||||
| Other income (expense) | ||||||||||||||
| (Loss) income from unconsolidated joint ventures | (6,873) | 1,832 | ||||||||||||
| (Losses) gains on sales of real estate | (209) | 203,767 | ||||||||||||
Gains from investments in securities 2 | 1,858 | 4,552 | ||||||||||||
| Interest and other income (loss) | (45) | 1,305 | ||||||||||||
| Interest expense | (110,993) | (107,142) | ||||||||||||
| Net income | 118,060 | 298,580 | ||||||||||||
| Net income (loss) attributable to noncontrolling interests | ||||||||||||||
| Noncontrolling interest in property partnerships | (15,561) | 767 | ||||||||||||
Noncontrolling interest - common units of the Operating Partnership 3 | (10,020) | (30,197) | ||||||||||||
| Net income attributable to Boston Properties, Inc. | 92,479 | 269,150 | ||||||||||||
| Preferred dividends | (2,625) | (2,625) | ||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 266,525 | ||||||||||
| INCOME PER SHARE OF COMMON STOCK (EPS) | ||||||||||||||
| Net income attributable to Boston Properties, Inc. per share - basic | $ | 0.58 | $ | 1.71 | ||||||||||
| Net income attributable to Boston Properties, Inc. per share - diluted | $ | 0.58 | $ | 1.71 | ||||||||||
_____________
1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 59.
2General and administrative expense includes $1.9 million and $4.6 million and Gains from investments in securities include $1.9 million and $4.6 million for the three months ended September 30, 2020 and June 30, 2020, respectively, related to the Company’s deferred compensation plan.
3For additional detail, see page 6.
5
| Q3 2020 | ||||
Funds from operations (FFO) 1 | |||||
(unaudited and dollars in thousands, except per share amounts)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 266,525 | ||||||||||
| Add: | ||||||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Noncontrolling interest - common units of the Operating Partnership | 10,020 | 30,197 | ||||||||||||
| Noncontrolling interests in property partnerships | 15,561 | (767) | ||||||||||||
| Net income | 118,060 | 298,580 | ||||||||||||
| Add: | ||||||||||||||
| Depreciation and amortization expense | 166,456 | 178,188 | ||||||||||||
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 | (15,833) | (22,480) | ||||||||||||
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 | 20,413 | 21,012 | ||||||||||||
| Corporate-related depreciation and amortization | (444) | (486) | ||||||||||||
| Less: | ||||||||||||||
| Gain on sale of real estate included within (loss) income from unconsolidated joint ventures | — | 5,946 | ||||||||||||
| (Losses) gains on sales of real estate | (209) | 203,767 | ||||||||||||
| Noncontrolling interests in property partnerships | 15,561 | (767) | ||||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 4 | 270,675 | 263,243 | ||||||||||||
| Less: | ||||||||||||||
| Noncontrolling interest - common units of the Operating Partnership’s share of FFO | 26,697 | 26,335 | ||||||||||||
| FFO attributable to Boston Properties, Inc. common shareholders | $ | 243,978 | $ | 236,908 | ||||||||||
| Boston Properties, Inc.’s percentage share of Basic FFO | 90.14 | % | 90.00 | % | ||||||||||
| Noncontrolling interest’s - common unitholders percentage share of Basic FFO | 9.86 | % | 10.00 | % | ||||||||||
| Basic FFO per share | $ | 1.57 | $ | 1.52 | ||||||||||
| Weighted average shares outstanding - basic | 155,645 | 155,386 | ||||||||||||
| Diluted FFO per share | $ | 1.57 | $ | 1.52 | ||||||||||
| Weighted average shares outstanding - diluted | 155,670 | 155,407 | ||||||||||||
RECONCILIATION TO DILUTED FFO
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Basic FFO | $ | 270,675 | $ | 263,243 | ||||||||||
| Add: | ||||||||||||||
| Effect of dilutive securities - stock-based compensation | — | — | ||||||||||||
| Diluted FFO | 270,675 | 263,243 | ||||||||||||
| Less: | ||||||||||||||
| Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO | 26,693 | 26,331 | ||||||||||||
| Boston Properties, Inc.’s share of Diluted FFO | $ | 243,982 | $ | 236,912 | ||||||||||
RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Shares/units for Basic FFO | 172,677 | 172,659 | ||||||||||||
| Add: | ||||||||||||||
| Effect of dilutive securities - stock-based compensation (shares/units) | 25 | 21 | ||||||||||||
| Shares/units for Diluted FFO | 172,702 | 172,680 | ||||||||||||
| Less: | ||||||||||||||
| Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) | 17,032 | 17,273 | ||||||||||||
| Boston Properties, Inc.’s share of shares/units for Diluted FFO | 155,670 | 155,407 | ||||||||||||
| Boston Properties, Inc.’s percentage share of Diluted FFO | 90.14 | % | 90.00 | % | ||||||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2For a quantitative reconciliation for the three months ended September 30, 2020, see page 34.
3For a quantitative reconciliation for the three months ended September 30, 2020, see page 37.
4Basic FFO for Q3 2020 decreased by $11,896 from $282,571 for Q3 2019. For a reconciliation of Basic FFO to Net income attributable to Boston Properties, Inc. common shareholders for Q3 2019, see page 66. Included in the Q3 2020 amounts are BXP’s Share of: $5,931 of write-offs associated with accrued rent (all of which was included within straight-line rent), $3,790 of write-offs associated with accounts receivable, a $10,578 decrease in parking and other revenue and a $7,345 decrease in NOI due to the closure of our only hotel. These items decreased Q3 2020 Basic FFO by $27,644. For additional information, see page 59.
6
| Q3 2020 | ||||
Funds available for distributions (FAD) 1 | |||||
(dollars in thousands)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 266,525 | ||||||||||
| Add: | ||||||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Noncontrolling interest - common units of the Operating Partnership | 10,020 | 30,197 | ||||||||||||
| Noncontrolling interests in property partnerships | 15,561 | (767) | ||||||||||||
| Net income | 118,060 | 298,580 | ||||||||||||
| Add: | ||||||||||||||
| Depreciation and amortization expense | 166,456 | 178,188 | ||||||||||||
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 | (15,833) | (22,480) | ||||||||||||
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 | 20,413 | 21,012 | ||||||||||||
| Corporate-related depreciation and amortization | (444) | (486) | ||||||||||||
| Less: | ||||||||||||||
| Gain on sale of real estate included within (loss) income from unconsolidated joint ventures | — | 5,946 | ||||||||||||
| (Losses) gains on sales of real estate | (209) | 203,767 | ||||||||||||
| Noncontrolling interests in property partnerships | 15,561 | (767) | ||||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Basic FFO | 270,675 | 263,243 | ||||||||||||
| Add: | ||||||||||||||
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 | 2,965 | 1,309 | ||||||||||||
BXP’s Share of hedge amortization 1 | 1,446 | 1,446 | ||||||||||||
BXP’s Share of straight-line ground rent expense adjustment 1, 5 | 940 | 992 | ||||||||||||
| Stock-based compensation | 8,253 | 10,374 | ||||||||||||
| Non-real estate depreciation | 444 | 486 | ||||||||||||
Unearned portion of capitalized fees from consolidated joint ventures 6 | 660 | 411 | ||||||||||||
| Less: | ||||||||||||||
BXP’s Share of straight-line rent 1 | 40,478 | 22,747 | ||||||||||||
BXP’s Share of fair value lease revenue 1, 7 | 979 | 2,548 | ||||||||||||
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 | 828 | — | ||||||||||||
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 | 67,826 | 83,024 | ||||||||||||
BXP’s Share of maintenance capital expenditures 1, 8 | 21,722 | 16,246 | ||||||||||||
| Hotel improvements, equipment upgrades and replacements | 69 | 36 | ||||||||||||
Funds available for distribution to common shareholders and common unitholders (FAD) 9 (A) | $ | 153,481 | $ | 153,660 | ||||||||||
Distributions to common shareholders and unitholders (excluding any special distributions) (B) | $ | 169,701 | $ | 169,701 | ||||||||||
FAD Payout Ratio1 (B÷A) | 110.57 | % | 110.44 | % | ||||||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2For a quantitative reconciliation for the three months ended September 30, 2020, see page 34.
3For a quantitative reconciliation for the three months ended September 30, 2020, see page 37.
4Consists 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.
5Includes 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 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.
6See page 61 for additional information.
7Represents 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.
8Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
9FAD for Q3 2020 decreased by $38,439 from $191,920 for Q3 2019. For a reconciliation of FAD to Net income attributable to Boston Properties, Inc. common shareholders for Q3 2019, see page 67. Included in the Q3 2020 amounts are BXP’s Share of: $3,790 of write-offs associated with accounts receivable, a $18,214 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, a $10,578 decrease in parking and other revenue and a $7,345 decrease in NOI due to the closure of our only hotel. These items decreased Q3 2020 FAD by $39,927. For additional information, see page 59.
7
| Q3 2020 | ||||
| Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) | |||||
(in thousands)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Sep-19 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 107,771 | ||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Net income attributable to Boston Properties, Inc. | 92,479 | 110,396 | ||||||||||||
| Net income attributable to noncontrolling interests: | ||||||||||||||
| Noncontrolling interest - common units of the Operating Partnership | 10,020 | 12,504 | ||||||||||||
| Noncontrolling interest in property partnerships | 15,561 | 18,470 | ||||||||||||
| Net income | 118,060 | 141,370 | ||||||||||||
| Add: | ||||||||||||||
| Interest expense | 110,993 | 106,471 | ||||||||||||
| Loss from early extinguishments of debt | — | 28,010 | ||||||||||||
| Depreciation and amortization expense | 166,456 | 165,862 | ||||||||||||
| Transaction costs | 307 | 538 | ||||||||||||
| Payroll and related costs from management services contracts | 2,896 | 2,429 | ||||||||||||
| General and administrative expense | 27,862 | 31,147 | ||||||||||||
| Less: | ||||||||||||||
| Interest and other income (loss) | (45) | 7,178 | ||||||||||||
| Gains from investments in securities | 1,858 | 106 | ||||||||||||
| Losses on sales of real estate | (209) | (15) | ||||||||||||
| Loss from unconsolidated joint ventures | (6,873) | (649) | ||||||||||||
| Direct reimbursements of payroll and related costs from management services contracts | 2,896 | 2,429 | ||||||||||||
| Development and management services revenue | 7,281 | 10,303 | ||||||||||||
| Net Operating Income (NOI) | 421,666 | 456,475 | ||||||||||||
| Add: | ||||||||||||||
BXP’s share of NOI from unconsolidated joint ventures 1 | 24,938 | 23,065 | ||||||||||||
| Less: | ||||||||||||||
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 | 42,160 | 46,249 | ||||||||||||
| BXP’s Share of NOI | 404,444 | 433,291 | ||||||||||||
| Less: | ||||||||||||||
| Termination income | 3,406 | 1,960 | ||||||||||||
BXP’s share of termination income from unconsolidated joint ventures 1 | — | — | ||||||||||||
| Add: | ||||||||||||||
Partners’ share of termination income from consolidated joint ventures 2 | 556 | — | ||||||||||||
| BXP’s Share of NOI (excluding termination income) | $ | 401,594 | $ | 431,331 | ||||||||||
| Net Operating Income (NOI) | $ | 421,666 | $ | 456,475 | ||||||||||
| Less: | ||||||||||||||
| Termination income | 3,406 | 1,960 | ||||||||||||
NOI from non Same Properties (excluding termination income) 3 | 17,288 | 16,155 | ||||||||||||
| Same Property NOI (excluding termination income) | 400,972 | 438,360 | ||||||||||||
| Less: | ||||||||||||||
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 | 41,604 | 46,249 | ||||||||||||
| Add: | ||||||||||||||
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 | (70) | 191 | ||||||||||||
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 | 24,938 | 23,065 | ||||||||||||
| Less: | ||||||||||||||
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 | 6,732 | 833 | ||||||||||||
| BXP’s Share of Same Property NOI (excluding termination income) | $ | 377,504 | $ | 414,534 | ||||||||||
_____________
1For a quantitative reconciliation for the three months ended September 30, 2020, see page 64.
2For a quantitative reconciliation for the three months ended September 30, 2020, see pages 61-62.
3Pages 22-25 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 September 30, 2020 and therefore are no longer a part of the Company’s property portfolio.
8
| Q3 2020 | ||||
| Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash | |||||
(in thousands)
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Sep-19 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 107,771 | ||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Net income attributable to Boston Properties, Inc. | 92,479 | 110,396 | ||||||||||||
| Net income attributable to noncontrolling interests: | ||||||||||||||
| Noncontrolling interest - common units of the Operating Partnership | 10,020 | 12,504 | ||||||||||||
| Noncontrolling interest in property partnerships | 15,561 | 18,470 | ||||||||||||
| Net income | 118,060 | 141,370 | ||||||||||||
| Add: | ||||||||||||||
| Interest expense | 110,993 | 106,471 | ||||||||||||
| Loss from early extinguishments of debt | — | 28,010 | ||||||||||||
| Depreciation and amortization expense | 166,456 | 165,862 | ||||||||||||
| Transaction costs | 307 | 538 | ||||||||||||
| Payroll and related costs from management services contracts | 2,896 | 2,429 | ||||||||||||
| General and administrative expense | 27,862 | 31,147 | ||||||||||||
| Less: | ||||||||||||||
| Interest and other income (loss) | (45) | 7,178 | ||||||||||||
| Gains from investments in securities | 1,858 | 106 | ||||||||||||
| Losses on sales of real estate | (209) | (15) | ||||||||||||
| Loss from unconsolidated joint ventures | (6,873) | (649) | ||||||||||||
| Direct reimbursements of payroll and related costs from management services contracts | 2,896 | 2,429 | ||||||||||||
| Development and management services revenue | 7,281 | 10,303 | ||||||||||||
| Net Operating Income (NOI) | 421,666 | 456,475 | ||||||||||||
| Less: | ||||||||||||||
| Straight-line rent | 46,713 | (16,803) | ||||||||||||
Straight-line rent from deferred revenue 1 | — | 36,926 | ||||||||||||
| Fair value lease revenue | (662) | 4,961 | ||||||||||||
| Termination income | 3,406 | 1,960 | ||||||||||||
| Add: | ||||||||||||||
Straight-line ground rent expense adjustment 2 | 799 | 843 | ||||||||||||
Lease transaction costs that qualify as rent inducements 3 | 3,966 | 2,140 | ||||||||||||
| NOI - cash (excluding termination income) | 376,974 | 432,414 | ||||||||||||
| Less: | ||||||||||||||
NOI - cash from non Same Properties (excluding termination income) 4 | 15,709 | 16,576 | ||||||||||||
| Same Property NOI - cash (excluding termination income) | 361,265 | 415,838 | ||||||||||||
| Less: | ||||||||||||||
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 5 | 35,318 | 42,930 | ||||||||||||
| Add: | ||||||||||||||
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 | (64) | 263 | ||||||||||||
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 6 | 22,288 | 20,012 | ||||||||||||
| Less: | ||||||||||||||
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 4 | 4,414 | 510 | ||||||||||||
| BXP’s Share of Same Property NOI - cash (excluding termination income) | $ | 343,757 | $ | 392,673 | ||||||||||
_____________
1Represents the straight-line impact related to deferred revenue from a tenant. The tenant paid for improvements to a long-lived asset of the Company resulting in deferred revenue for the period until the asset was substantially complete, which occurred in the third quarter 2019.
2In 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 $98 and $176 for the three months ended September 30, 2020 and 2019, respectively. As of September 30, 2020, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes 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 2023 may vary significantly.
3Consists 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.
4Pages 22-25 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 September 30, 2020 and therefore are no longer a part of the Company’s property portfolio.
9
| Q3 2020 | ||||
| Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash (continued) | |||||
5For a quantitative reconciliation for the three months ended September 30, 2020, see page 62.
6For a quantitative reconciliation for the three months ended September 30, 2020, see page 64.
10
| Q3 2020 | ||||
| Same property net operating income (NOI) by reportable segment | |||||
(dollars in thousands)
Office 1 | Hotel & Residential 2 | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | $ | % | Three Months Ended | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| 30-Sep-20 | 30-Sep-19 | Change | Change | 30-Sep-20 | 30-Sep-19 | Change | Change | ||||||||||||||||||||||||||||||||||||||||
Rental Revenue 3 | $ | 647,318 | $ | 680,356 | $ | 9,784 | $ | 23,010 | |||||||||||||||||||||||||||||||||||||||
| Less: Termination income | 2,715 | 1,698 | 691 | — | |||||||||||||||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | 644,603 | 678,658 | $ | (34,055) | (5.0) | % | 9,093 | 23,010 | $ | (13,917) | (60.5) | % | |||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 245,346 | 250,554 | (5,208) | (2.1) | % | 7,378 | 12,754 | (5,376) | (42.2) | % | |||||||||||||||||||||||||||||||||||||
NOI (excluding termination income) 3, 4 | $ | 399,257 | $ | 428,104 | $ | (28,847) | (6.7) | % | $ | 1,715 | $ | 10,256 | $ | (8,541) | (83.3) | % | |||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | $ | 644,603 | $ | 678,658 | $ | (34,055) | (5.0) | % | $ | 9,093 | $ | 23,010 | $ | (13,917) | (60.5) | % | |||||||||||||||||||||||||||||||
Less: Straight-line rent and fair value lease revenue 5 | 44,312 | 25,182 | 19,130 | 76.0 | % | 153 | 59 | 94 | 159.3 | % | |||||||||||||||||||||||||||||||||||||
Add: Lease transaction costs that qualify as rent inducements 6 | 3,959 | 1,876 | 2,083 | 111.0 | % | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||
| Subtotal | 604,250 | 655,352 | (51,102) | (7.8) | % | 8,940 | 22,951 | (14,011) | (61.0) | % | |||||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 245,346 | 250,554 | (5,208) | (2.1) | % | 7,378 | 12,754 | (5,376) | (42.2) | % | |||||||||||||||||||||||||||||||||||||
Add: Straight-line ground rent expense 7 | 799 | 843 | (44) | (5.2) | % | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||
NOI - cash (excluding termination income) 3, 4, 5 | $ | 359,703 | $ | 405,641 | $ | (45,938) | (11.3) | % | $ | 1,562 | $ | 10,197 | $ | (8,635) | (84.7) | % | |||||||||||||||||||||||||||||||
Consolidated Total 1, 8 (A) | BXP’s share of Unconsolidated Joint Ventures 8 (B) | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | $ | % | Three Months Ended | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| 30-Sep-20 | 30-Sep-19 | Change | Change | 30-Sep-20 | 30-Sep-19 | Change | Change | ||||||||||||||||||||||||||||||||||||||||
Rental Revenue 3 | $ | 657,102 | $ | 703,366 | $ | 30,566 | $ | 35,126 | |||||||||||||||||||||||||||||||||||||||
| Less: Termination income | 3,406 | 1,698 | — | — | |||||||||||||||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | 653,696 | 701,668 | $ | (47,972) | (6.8) | % | 30,566 | 35,126 | $ | (4,560) | (13.0) | % | |||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 252,724 | 263,308 | (10,584) | (4.0) | % | 12,360 | 12,894 | (534) | (4.1) | % | |||||||||||||||||||||||||||||||||||||
NOI (excluding termination income) 3, 4 | $ | 400,972 | $ | 438,360 | $ | (37,388) | (8.5) | % | $ | 18,206 | $ | 22,232 | $ | (4,026) | (18.1) | % | |||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | $ | 653,696 | $ | 701,668 | $ | (47,972) | (6.8) | % | $ | 30,566 | $ | 35,126 | $ | (4,560) | (13.0) | % | |||||||||||||||||||||||||||||||
Less: Straight-line rent and fair value lease revenue 5 | 44,465 | 25,241 | 19,224 | 76.2 | % | 542 | 2,906 | (2,364) | (81.3) | % | |||||||||||||||||||||||||||||||||||||
Add: Lease transaction costs that qualify as rent inducements 6 | 3,959 | 1,876 | 2,083 | 111.0 | % | 210 | 176 | 34 | 19.3 | % | |||||||||||||||||||||||||||||||||||||
| Subtotal | $ | 613,190 | $ | 678,303 | (65,113) | (9.6) | % | 30,234 | 32,396 | (2,162) | (6.7) | % | |||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 252,724 | 263,308 | (10,584) | (4.0) | % | 12,360 | 12,894 | (534) | (4.1) | % | |||||||||||||||||||||||||||||||||||||
Add: Straight-line ground rent expense 7 | 799 | 843 | (44) | (5.2) | % | — | — | — | — | % | |||||||||||||||||||||||||||||||||||||
NOI - cash (excluding termination income) 3, 4, 5 | $ | 361,265 | $ | 415,838 | $ | (54,573) | (13.1) | % | $ | 17,874 | $ | 19,502 | $ | (1,628) | (8.3) | % | |||||||||||||||||||||||||||||||
Partners’ share of Consolidated Joint Ventures 8 (C) | BXP’s Share 3, 8, 9, 10, 11 | ||||||||||||||||||||||||||||||||||||||||||||||
| Three Months Ended | $ | % | Three Months Ended | $ | % | ||||||||||||||||||||||||||||||||||||||||||
| 30-Sep-20 | 30-Sep-19 | Change | Change | 30-Sep-20 | 30-Sep-19 | Change | Change | ||||||||||||||||||||||||||||||||||||||||
Rental Revenue 3 | $ | 71,395 | $ | 75,286 | $ | 616,273 | $ | 663,206 | |||||||||||||||||||||||||||||||||||||||
| Less: Termination income | 556 | — | 2,850 | 1,698 | |||||||||||||||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | 70,839 | 75,286 | $ | (4,447) | (5.9) | % | 613,423 | 661,508 | $ | (48,085) | (7.3) | % | |||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 29,165 | 29,228 | (63) | (0.2) | % | 235,919 | 246,974 | (11,055) | (4.5) | % | |||||||||||||||||||||||||||||||||||||
NOI (excluding termination income) 3, 4 | $ | 41,674 | $ | 46,058 | $ | (4,384) | (9.5) | % | $ | 377,504 | $ | 414,534 | $ | (37,030) | (8.9) | % | |||||||||||||||||||||||||||||||
Rental revenue (excluding termination income) 3 | $ | 70,839 | $ | 75,286 | $ | (4,447) | (5.9) | % | $ | 613,423 | $ | 661,508 | $ | (48,085) | (7.3) | % | |||||||||||||||||||||||||||||||
Less: Straight-line rent and fair value lease revenue 5 | 7,165 | 3,672 | 3,493 | 95.1 | % | 37,842 | 24,475 | 13,367 | 54.6 | % | |||||||||||||||||||||||||||||||||||||
Add: Lease transaction costs that qualify as rent inducements 6 | 873 | 281 | 592 | 210.7 | % | 3,296 | 1,771 | 1,525 | 86.1 | % | |||||||||||||||||||||||||||||||||||||
| Subtotal | 64,547 | 71,895 | (7,348) | (10.2) | % | 578,877 | 638,804 | (59,927) | (9.4) | % | |||||||||||||||||||||||||||||||||||||
| Less: Operating expenses and real estate taxes | 29,165 | 29,228 | (63) | (0.2) | % | 235,919 | 246,974 | (11,055) | (4.5) | % | |||||||||||||||||||||||||||||||||||||
Add: Straight-line ground rent expense 7 | — | — | — | — | % | 799 | 843 | (44) | (5.2) | % | |||||||||||||||||||||||||||||||||||||
NOI - cash (excluding termination income) 3, 4, 5 | $ | 35,382 | $ | 42,667 | $ | (7,285) | (17.1) | % | $ | 343,757 | $ | 392,673 | $ | (48,916) | (12.5) | % | |||||||||||||||||||||||||||||||
___________________
1Includes 100% share of consolidated joint ventures that are a Same Property.
2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and did not re-open until October 2, 2020.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
4For 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.
5For the three months ended September 30, 2019, excludes the straight-line impact of approximately $(36.9) million for Office and Consolidated Total, $(14.7) million for Partners’ share of Consolidated Joint Ventures and $(22.2) million for BXP’s Share in connection with the deferred revenue received from a tenant. For additional information, see page 9.
11
| Q3 2020 | ||||
| Same property net operating income (NOI) by reportable segment (continued) | |||||
6Consists 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.
7Excludes the straight-line impact of approximately $98 and $176 for the three months ended September 30, 2020 and 2019, 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.
8For the three months ended September 30, 2020, includes write-offs associated with accounts receivable of approximately $3,373 for Consolidated Total, $120 for Partners’ share of Consolidated Joint Ventures, $537 for BXP’s share of Unconsolidated Joint Ventures and $3,790 for BXP’s Share, primarily related to COVID-19. For the three months ended September 30, 2020, includes write-offs associated with straight-line rent of approximately $4,098 for Consolidated Total, $86 for Partners’ share of Consolidated Joint Ventures, $1,919 for BXP’s share of Unconsolidated Joint Ventures and $5,931 for BXP’s Share, primarily related to COVID-19. For additional information, see page 59.
9BXP’s Share equals (A) + (B) - (C).
10BXP’s Share of Same Store NOI (excluding termination income) was $37,030 less, compared to Q3 2019. Included in the Q3 2020 comparison are BXP’s Share of $5,931 of write-offs associated with accrued rent (all of which was included within straight-line rent), $3,790 of write-offs associated with accounts receivable, $10,406 decrease in parking and other revenue and a $7,345 decrease in NOI due to the closure of our only hotel. These items decreased BXP’s Share of Same Store NOI (excluding termination income) by $27,472. For additional information, see page 59.
11BXP’s Share of Same Store NOI-cash (excluding termination income) was $48,916 less, compared to Q3 2019. Included in the Q3 2020 comparison are BXP’s Share of $3,790 of write-offs associated with accounts receivable, $16,828 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, $10,406 decrease in parking and other revenue and a $7,345 decrease in NOI due to the closure of our only hotel. These items decreased BXP’s Share of Same Store NOI-cash (excluding termination income) by $38,369. For additional information, see page 59.
12
| Q3 2020 | ||||
| Capital expenditures, tenant improvement costs and leasing commissions | |||||
(dollars in thousands, except PSF amounts)
CAPITAL EXPENDITURES
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Maintenance capital expenditures | $ | 22,003 | $ | 15,461 | ||||||||||
| Planned capital expenditures associated with acquisition properties | — | — | ||||||||||||
| Repositioning capital expenditures | (121) | 98 | ||||||||||||
| Hotel improvements, equipment upgrades and replacements | 69 | 36 | ||||||||||||
| Subtotal | 21,951 | 15,595 | ||||||||||||
| Add: | ||||||||||||||
| BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) | 178 | 876 | ||||||||||||
| BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs | 1,793 | 3,034 | ||||||||||||
| BXP’s share of repositioning capital expenditures from unconsolidated JVs | (203) | 655 | ||||||||||||
| Less: | ||||||||||||||
| Partners’ share of maintenance capital expenditures from consolidated JVs | 459 | 91 | ||||||||||||
| Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs | — | — | ||||||||||||
| Partners’ share of repositioning capital expenditures from consolidated JVs | (77) | 30 | ||||||||||||
BXP’s Share of Capital Expenditures 1 | $ | 23,337 | $ | 20,039 | ||||||||||
2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Square feet | 1,188,471 | 1,278,458 | ||||||||||||
| Tenant improvements and lease commissions PSF | $ | 66.57 | $ | 102.33 | ||||||||||
___________________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2Includes 100% of unconsolidated joint ventures.
13
| Q3 2020 | ||||
| Acquisitions and dispositions | |||||
For the period from January 1, 2020 through September 30, 2020
(dollars in thousands)
ACQUISITIONS
| Investment | ||||||||||||||||||||||||||||||||||||||||||||
| Property | Location | Date Acquired | Square Feet | Initial | Anticipated Future | Total | In-service Leased (%) | |||||||||||||||||||||||||||||||||||||
681, 685 and 701 Gateway (50% nominal ownership interest) 1 | South San Francisco, CA | January 28, 2020 | 312,828 | $ | 280,751 | $ | — | $ | 280,751 | 100.0 | % | |||||||||||||||||||||||||||||||||
Platform 16 (55% ownership interest) 2 | San Jose, CA | February 20, 2020 | N/A | 74,113 | — | 74,113 | N/A | |||||||||||||||||||||||||||||||||||||
Fourth + Harrison | San Francisco, CA | June 26, 2020 | N/A | 140,147 | — | 140,147 | N/A | |||||||||||||||||||||||||||||||||||||
Beach Cities Media Center (50% ownership interest) | El Segundo, CA | July 23, 2020 | N/A | 21,226 | — | 21,226 | N/A | |||||||||||||||||||||||||||||||||||||
| 759 Harrison Street (undivided 50% ownership interest) | San Francisco, CA | July 31, 2020 | N/A | 2,250 | — | 2,250 | N/A | |||||||||||||||||||||||||||||||||||||
| Total Acquisitions | 312,828 | $ | 518,487 | $ | — | $ | 518,487 | 100.0 | % | |||||||||||||||||||||||||||||||||||
DISPOSITIONS
| Property | Location | Date Disposed | Square Feet | Gross Sales Price | Net Cash Proceeds | Book Gain 5 | ||||||||||||||||||||||||||||||||||||||
601, 611 and 651 Gateway (50% ownership interest) 1 | South San Francisco, CA | January 28, 2020 | 768,236 | $ | 350,000 | $ | — | $ | 217,744 | |||||||||||||||||||||||||||||||||||
New Dominion Technology Park | Herndon, VA | February 20, 2020 | 492,601 | 256,000 | 253,971 | 192,297 | ||||||||||||||||||||||||||||||||||||||
Annapolis Junction Building Eight and two land parcels (50% ownership interest) 3 | Annapolis, MD | June 25, 2020 | 125,685 | 47,000 | 22,899 | 5,833 | ||||||||||||||||||||||||||||||||||||||
Capital Gallery 4 | Washington, DC | June 25, 2020 | 455,000 | 253,675 | 246,615 | 203,557 | ||||||||||||||||||||||||||||||||||||||
| Total Dispositions | 1,841,522 | $ | 906,675 | $ | 523,485 | $ | 619,431 | |||||||||||||||||||||||||||||||||||||
________________
1On January 28, 2020, the Company entered into a joint venture with a third party to own, operate and develop properties at its Gateway Commons complex located in South San Francisco, California. The Company contributed its 601, 611 and 651 Gateway properties and development rights with an agreed upon value aggregating approximately $350.0 million for its 50% interest in the joint venture. The partner contributed three properties and development rights with an agreed upon value aggregating approximately $280.8 million at closing and will contribute cash totaling approximately $69.2 million in the future for its 50% ownership interest in the joint venture. As a result of the partner’s deferred contribution, the Company has an initial approximately 55% interest in the joint venture. The Company recognized a gain on the retained and sold interest in the real estate contributed to the joint venture totaling approximately $217.7 million during the three months ended March 31, 2020, as the fair value of the real estate exceeded its carrying value.
2On February 20, 2020, a joint venture in which the Company has a 55% interest acquired the land underlying the ground lease at its Platform 16 project located in San Jose, California for a purchase price totaling approximately $134.8 million. The joint venture had previously made a deposit totaling $15.0 million, which deposit was credited against the purchase price. Platform 16 consists of a parcel of land totaling approximately 5.6 acres that is expected to support the development of approximately 1.1 million square feet of commercial office space.
3Net cash proceeds totaled approximately $45.8 million, of which the Company’s share was approximately $22.9 million. The joint venture distributed approximately $36.8 million, of which the Company’s share totaled approximately $18.4 million, of available cash and the net proceeds from the sale after the pay down of the mortgage loan. The Company’s share of the gain on sale of real estate totaling approximately $5.8 million is included in Income from Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations.
4On June 25, 2020, the Company sold a portion of its Capital Gallery property located in Washington, DC for a gross sale price of approximately $253.7 million. The portion sold was comprised of approximately 455,000 net rentable square feet of commercial office space. The Company continues to own the land, underground parking garage and remaining commercial office and retail space containing approximately 176,000 net rentable square feet at the property.
5Excludes approximately $0.2 million of gains on sales of real estate recognized during the nine months ended September 30, 2020 related to gain amounts from sales of real estate occurring in the prior year.
14
| Q3 2020 | ||||
| Construction in progress | |||||
as of September 30, 2020
(dollars in thousands)
CONSTRUCTION IN PROGRESS 1
| Actual/Estimated | BXP’s share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Total Investment 2 | Amount Drawn at 9/30/2020 | Estimated Future Equity Requirement 2 | Percentage placed in-service 4 | Net Operating Income (Loss) 5 (BXP’s share) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Initial Occupancy | Stabilization Date | Square Feet | Investment to Date 2 | Total Financing | Percentage Leased 3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Construction Properties | Location | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Office and Retail | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dock 72 (50% ownership) | Q4 2019 | Q2 2022 | Brooklyn, NY | 670,000 | $ | 209,795 | $ | 243,150 | $ | 125,000 | $ | 98,206 | $ | 6,561 | 33 | % | 34 | % | $ | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
325 Main Street | Q3 2022 | Q3 2022 | Cambridge, MA | 420,000 | 148,585 | 418,400 | — | 269,815 | 90 | % | — | % | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
100 Causeway Street (50% ownership) | Q2 2021 | Q3 2022 | Boston, MA | 632,000 | 167,620 | 267,300 | 200,000 | — | 90,274 | — | 94 | % | — | % | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) | Q3 2022 | Q3 2022 | Bethesda, MD | 734,000 | 134,843 | 198,900 | 127,500 | 66,361 | 2,918 | 100 | % | — | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reston Next (formerly Reston Gateway) | Q4 2022 | Q4 2023 | Reston, VA | 1,062,000 | 323,537 | 715,300 | — | — | 391,763 | 85 | % | — | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2100 Pennsylvania Avenue | Q3 2022 | Q3 2024 | Washington, DC | 480,000 | 109,153 | 356,100 | — | — | 246,947 | 62 | % | — | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Office Properties under Construction | 3,998,000 | 1,093,533 | 2,199,150 | 452,500 | 254,841 | 918,004 | 78 | % | 6 | % | 635 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Redevelopment Properties | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
One Five Nine East 53rd (55% ownership) | Q1 2021 | Q1 2021 | New York, NY | 220,000 | 137,155 | 150,000 | — | — | 12,845 | 96 | % | — | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
200 West Street 6 | Q4 2021 | Q4 2021 | Waltham, MA | 126,000 | 13,663 | 47,800 | — | — | 34,137 | — | % | — | % | N/A | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Redevelopment Properties under Construction | 346,000 | 150,818 | 197,800 | — | — | 46,982 | 61 | % | — | % | N/A | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Properties Under Construction and Redevelopment | 4,344,000 | $ | 1,244,351 | $ | 2,396,950 | $ | 452,500 | $ | 254,841 | $ | 964,986 | 77 | % | 6 | % | 635 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROJECTS FULLY PLACED IN-SERVICE DURING 2020
| Actual/Estimated | BXP’s share | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Total Investment 2 | Amount Drawn at 9/30/2020 | Estimated Future Equity Requirement 2 | Net Operating Income (Loss) 5 (BXP’s share) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Initial Occupancy | Stabilization Date | Square feet | Investment to Date 2 | Total Financing | Percentage Leased 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Location | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
17Fifty Presidents Street | Q1 2020 | Q1 2020 | Reston, VA | 275,809 | $ | 130,989 | $ | 142,900 | $ | — | $ | — | $ | 11,911 | 100 | % | $ | 3,635 | |||||||||||||||||||||||||||||||||||||||||||||||
20 CityPoint | Q3 2019 | Q3 2021 | Waltham, MA | 211,476 | 76,951 | 97,000 | — | — | 20,049 | 62 | % | 1,130 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Hub50House (440 units) (50% ownership) | Q4 2019 | Q1 2022 | Boston, MA | 320,444 | 146,296 | 153,500 | 90,000 | 84,517 | 1,721 | 55 | % | 233 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
The Skylyne (402 units) 7 | Q3 2020 | Q1 2022 | Oakland, CA | 318,171 | 242,166 | 263,600 | — | — | 21,434 | 8 | % | (717) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Skylyne Retail | 12,825 | N/A | N/A | — | — | — | — | % | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total Projects Fully Placed In-Service | 1,138,725 | $ | 596,402 | $ | 657,000 | $ | 90,000 | $ | 84,517 | $ | 55,115 | 81 | % | 8 | $ | 4,281 | |||||||||||||||||||||||||||||||||||||||||||||||||
15
| Q3 2020 | ||||
| Construction in progress (continued) | |||||
_____________
1A 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.
2Includes income (loss) and interest carry on debt and equity investment.
3Represents percentage leased as of October 27, 2020, including leases with future commencement dates.
4Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.
5Amounts represent Net Operating Income (Loss) for the three months ended September 30, 2020. See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
6Represents a portion of the property under redevelopment for conversion to laboratory space.
7This property is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.
8Excludes residential units.
16
| Q3 2020 | ||||
| Land parcels and purchase options | |||||
as of September 30, 2020
OWNED LAND PARCELS
| Location | Approximate Developable Square Feet 1 | |||||||
Reston, VA 2 | 2,938,000 | |||||||
San Jose, CA 3 | 2,199,000 | |||||||
| New York, NY (25% ownership) | 2,000,000 | |||||||
| Princeton, NJ | 1,650,000 | |||||||
| San Jose, CA (55% ownership) | 1,078,000 | |||||||
| San Francisco, CA | 820,000 | |||||||
| South San Francisco, CA (50% ownership) | 640,000 | |||||||
| Waltham, MA | 605,000 | |||||||
| Washington, DC (50% ownership) | 520,000 | |||||||
| Springfield, VA | 422,000 | |||||||
Santa Clara, CA 3 | 414,000 | |||||||
| Marlborough, MA | 400,000 | |||||||
| Dulles, VA | 310,000 | |||||||
El Segundo, CA (50% ownership) 4 | 275,000 | |||||||
Total | 14,271,000 | |||||||
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
| Location | Approximate Developable Square Feet 1 | |||||||
| Boston, MA | 1,300,000 | |||||||
Waltham, MA 5 | 1,200,000 | |||||||
| Cambridge, MA | 330,000 | |||||||
| Total | 2,830,000 | |||||||
__________________
1Represents 100%.
2During the third quarter of 2020, a ground lease was executed with a hotel developer for approximately 200,000 square feet, contingent on their ability to obtain construction financing.
3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 24.
4Completed the acquisition of a 50% interest in Beach Cities Media Center, a 6.4-acre land site.
5The Company expects to be a 50% partner in the future development of these sites.
17
| Q3 2020 | ||||
| Leasing activity | |||||
for the three months ended September 30, 2020
ALL IN-SERVICE PROPERTIES
| Net (increase)/decrease in available space (SF) | Total | ||||
| Vacant space available at the beginning of the period | 3,570,356 | ||||
| Add: | |||||
Properties placed (and partially placed) in-service 1 | 12,825 | ||||
| Leases expiring or terminated during the period | 1,597,697 | ||||
| Total space available for lease | 5,180,878 | ||||
| 1st generation leases | — | ||||
| 2nd generation leases with new tenants | 613,534 | ||||
| 2nd generation lease renewals | 574,937 | ||||
| Total space leased | 1,188,471 | ||||
| Vacant space available for lease at the end of the period | 3,992,407 | ||||
| Net (increase)/decrease in available space | (422,051) | ||||
Second generation leasing information: 2 | |||||
| Leases commencing during the period (SF) | 1,188,471 | ||||
| Weighted average lease term (months) | 89 | ||||
| Weighted average free rent period (days) | 144 | ||||
Total transaction costs per square foot 3 | $66.57 | ||||
Increase (decrease) in gross rents 4 | 13.65 | % | |||
Increase (decrease) in net rents 5 | 20.14 | % | |||
| All leases (SF) | Incr (decr) in 2nd generation cash rents 6 | Total square feet of leases executed in the quarter 7, 8 | |||||||||||||||||||||||||||||||||
| 1st generation | 2nd generation | total 6 | gross 4 | net 5 | |||||||||||||||||||||||||||||||
| Boston | — | 262,154 | 262,154 | 10.14 | % | 15.32 | % | 96,491 | |||||||||||||||||||||||||||
| Los Angeles | — | 56,415 | 56,415 | 13.52 | % | 19.59 | % | 68,854 | |||||||||||||||||||||||||||
| New York | — | 210,455 | 210,455 | 7.85 | % | 14.00 | % | 249,461 | |||||||||||||||||||||||||||
| San Francisco | — | 386,729 | 386,729 | 21.24 | % | 29.48 | % | 37,674 | |||||||||||||||||||||||||||
| Washington, DC | — | 272,718 | 272,718 | 0.76 | % | 1.06 | % | 358,492 | |||||||||||||||||||||||||||
| Total / Weighted Average | — | 1,188,471 | 1,188,471 | 13.65 | % | 20.14 | % | 810,972 | |||||||||||||||||||||||||||
_____________
1Total square feet of properties placed (and partially placed) in-service in Q3 2020 consists of 12,825 square feet of retail at The Skylyne.
2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,188,471 square feet of second generation leases that commenced in Q3 2020, leases for 1,014,284 square feet were signed in prior periods.
3Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.
4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 894,966 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”).
5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 894,966 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”).
6Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.
7Amounts shown in this column exclude COVID-19 related lease modifications covering an aggregate of approximately 667,000 square feet that were executed in the third quarter of 2020 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $11.3 million in the third quarter representing BXP’s Share. Of these lease modifications, the lease terms associated with 176,787 square feet were extended for a period of 12 or more months. In addition, COVID-19 related lease modifications from the second quarter of 2020 provide cash rent and/or abatement in the aggregate amount of approximately $6.9 million in the third quarter representing BXP’s Share. For additional information, see page 59.
8Represents 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 174,187.
18
| Q3 2020 | ||||
| Portfolio overview | |||||
for the three months ended September 30, 2020
(dollars in thousands)
Rentable square footage of in-service properties by location and unit type 1, 2
| Office | Retail | Residential | Hotel | Total | ||||||||||||||||||||||||||||
| Boston | 13,789,140 | 1,106,270 | 550,114 | 330,000 | 15,775,524 | |||||||||||||||||||||||||||
| Los Angeles | 2,181,921 | 124,932 | — | — | 2,306,853 | |||||||||||||||||||||||||||
| New York | 10,482,351 | 395,923 | — | — | 10,878,274 | |||||||||||||||||||||||||||
| San Francisco | 7,497,789 | 334,643 | 318,171 | — | 8,150,603 | |||||||||||||||||||||||||||
| Washington, DC | 8,299,959 | 664,327 | 822,436 | — | 9,786,722 | |||||||||||||||||||||||||||
| Total | 42,251,160 | 2,626,095 | 1,690,721 | 330,000 | 46,897,976 | |||||||||||||||||||||||||||
| % of Total | 90.09 | % | 5.60 | % | 3.61 | % | 0.70 | % | 100.00 | % | ||||||||||||||||||||||
Rental revenue of in-service properties by unit type 1
Office 3 | Retail 4 | Residential | Hotel 5 | Total | ||||||||||||||||||||||||||||
| Consolidated | $ | 627,740 | $ | 46,486 | $ | 8,863 | $ | 2 | $ | 683,091 | ||||||||||||||||||||||
Less: | ||||||||||||||||||||||||||||||||
Partners’ share from consolidated joint ventures 6 | 62,406 | 9,061 | — | — | 71,467 | |||||||||||||||||||||||||||
Add: | ||||||||||||||||||||||||||||||||
BXP’s share from unconsolidated joint ventures 7 | 39,243 | 2,639 | 996 | — | 42,878 | |||||||||||||||||||||||||||
BXP’s Share of Rental revenue 1 | $ | 604,577 | $ | 40,064 | $ | 9,859 | $ | 2 | $ | 654,502 | ||||||||||||||||||||||
| % of Total | 92.37 | % | 6.12 | % | 1.51 | % | — | % | 100.00 | % | ||||||||||||||||||||||
Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 8
| CBD | Suburban | Total | |||||||||||||||
| Boston | 25.83 | % | 7.77 | % | 33.60 | % | |||||||||||
| Los Angeles | 2.98 | % | — | % | 2.98 | % | |||||||||||
| New York | 24.50 | % | 2.66 | % | 27.16 | % | |||||||||||
| San Francisco | 19.06 | % | 3.34 | % | 22.40 | % | |||||||||||
| Washington, DC | 5.09 | % | 8.77 | % | 13.86 | % | |||||||||||
| Total | 77.46 | % | 22.54 | % | 100.00 | % | |||||||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2Includes 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 22-25.
3Includes the impact of write-offs associated with accounts receivable of approximately $493, $0, $537 and $1,030 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $1,036, $0, $1,919 and $2,955 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.
4Includes the impact of write-offs associated with accounts receivable of approximately $2,880, $120, $0 and $2,760 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $3,062, $86, $0 and $2,976 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.
5Excludes approximately $88 of revenue from retail tenants that is included in Retail.
6See page 62 for additional information.
7See page 64 for additional information.
8BXP’s Share of 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.
19
| Q3 2020 | ||||
| Residential and hotel performance | |||||
(dollars in thousands, except rental rates)
RESULTS OF OPERATIONS
Residential 1 | Hotel 2 | ||||||||||||||||||||||
| Three Months Ended | Three Months Ended | ||||||||||||||||||||||
| 30-Sep-20 | 30-Jun-20 | 30-Sep-20 | 30-Jun-20 | ||||||||||||||||||||
Rental Revenue 3 | $ | 9,718 | $ | 9,402 | $ | 90 | $ | 99 | |||||||||||||||
| Less: Operating expenses and real estate taxes | 4,955 | 3,965 | 3,164 | 1,973 | |||||||||||||||||||
Net Operating Income (Loss) (NOI) 3 | 4,763 | 5,437 | (3,074) | (1,874) | |||||||||||||||||||
| Add: BXP’s share of NOI from unconsolidated joint ventures | 233 | 41 | N/A | N/A | |||||||||||||||||||
BXP’s Share of NOI 3 | $ | 4,996 | $ | 5,478 | $ | (3,074) | $ | (1,874) | |||||||||||||||
Rental Revenue 3 | $ | 9,718 | $ | 9,402 | $ | 90 | $ | 99 | |||||||||||||||
| Less: Straight line rent and fair value lease revenue | 159 | (69) | (6) | (6) | |||||||||||||||||||
| Subtotal | 9,559 | 9,471 | 96 | 105 | |||||||||||||||||||
| Less: Operating expenses and real estate taxes | 4,955 | 3,965 | 3,164 | 1,973 | |||||||||||||||||||
NOI - cash basis 3 | 4,604 | 5,506 | (3,068) | (1,868) | |||||||||||||||||||
| Add: BXP’s share of NOI-cash from unconsolidated joint ventures | 233 | 41 | N/A | N/A | |||||||||||||||||||
BXP’s Share of NOI - cash basis 3 | $ | 4,837 | $ | 5,547 | $ | (3,068) | $ | (1,868) | |||||||||||||||
RENTAL RATES AND OCCUPANCY - Year-over-Year
| Residential Units | Three Months Ended | Percent Change | |||||||||||||||||||||
| 30-Sep-20 | 30-Sep-19 | ||||||||||||||||||||||
| BOSTON | |||||||||||||||||||||||
Hub50House (50% ownership), Boston, MA 3, 4 | 440 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 3,571 | N/A | N/A | |||||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 5.32 | N/A | N/A | |||||||||||||||||||
| Average Physical Occupancy | 45.08 | % | N/A | N/A | |||||||||||||||||||
| Average Economic Occupancy | 39.31 | % | N/A | N/A | |||||||||||||||||||
Proto Kendall Square, Cambridge, MA 3, 5 | 280 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 2,676 | $ | 2,972 | (9.96) | % | |||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 4.91 | $ | 5.49 | (10.56) | % | |||||||||||||||||
| Average Physical Occupancy | 85.71 | % | 95.95 | % | (10.67) | % | |||||||||||||||||
| Average Economic Occupancy | 83.13 | % | 96.14 | % | (13.53) | % | |||||||||||||||||
The Lofts at Atlantic Wharf, Boston, MA 3, 5 | 86 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 4,231 | $ | 4,498 | (5.94) | % | |||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 4.62 | $ | 4.99 | (7.41) | % | |||||||||||||||||
| Average Physical Occupancy | 80.23 | % | 95.35 | % | (15.86) | % | |||||||||||||||||
| Average Economic Occupancy | 80.74 | % | 95.22 | % | (15.21) | % | |||||||||||||||||
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5 | N/A | ||||||||||||||||||||||
| Average Occupancy | — | % | 90.70 | % | (100.00) | % | |||||||||||||||||
| Average Daily Rate | $ | — | $ | 293.45 | (100.00) | % | |||||||||||||||||
| Revenue Per Available Room | $ | — | $ | 266.31 | (100.00) | % | |||||||||||||||||
| SAN FRANCISCO | |||||||||||||||||||||||
The Skylyne, Oakland, CA 3, 6 | 402 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 3,887 | N/A | N/A | |||||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 4.97 | N/A | N/A | |||||||||||||||||||
| Average Physical Occupancy | 2.27 | % | N/A | N/A | |||||||||||||||||||
| Average Economic Occupancy | 1.70 | % | N/A | N/A | |||||||||||||||||||
20
| Q3 2020 | ||||
| Residential and hotel performance (continued) | |||||
RENTAL RATES AND OCCUPANCY - Year-over-Year
| Residential Units | Three Months Ended | Percent Change | |||||||||||||||||||||
| 30-Sep-20 | 30-Sep-19 | ||||||||||||||||||||||
| WASHINGTON, DC | |||||||||||||||||||||||
Signature at Reston, Reston, VA 3, 5, 7 | 508 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 2,319 | $ | 2,379 | (2.52) | % | |||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 2.42 | $ | 2.56 | (5.47) | % | |||||||||||||||||
| Average Physical Occupancy | 82.22 | % | 74.48 | % | 10.39 | % | |||||||||||||||||
| Average Economic Occupancy | 78.20 | % | 68.90 | % | 13.50 | % | |||||||||||||||||
The Avant at Reston Town Center, Reston, VA 3, 5 | 359 | ||||||||||||||||||||||
| Average Monthly Rental Rate | $ | 2,352 | $ | 2,447 | (3.88) | % | |||||||||||||||||
| Average Rental Rate Per Occupied Square Foot | $ | 2.57 | $ | 2.66 | (3.38) | % | |||||||||||||||||
| Average Physical Occupancy | 89.69 | % | 92.94 | % | (3.50) | % | |||||||||||||||||
| Average Economic Occupancy | 88.90 | % | 93.04 | % | (4.45) | % | |||||||||||||||||
| Total In-Service Residential Units | 2,075 | ||||||||||||||||||||||
_____________
1Includes retail space.
2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and did not re-open until October 2, 2020.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
4This property was completed and fully placed in-service on July 24, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.
5Excludes retail space.
6This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.
7This property was completed and fully placed in-service on June 7, 2018 and is in its initial lease-up period with expected stabilization in the second quarter of 2021.
21
| Q3 2020 | ||||
| In-service property listing | |||||
as of September 30, 2020
| Sub Market | Number of Buildings | Square Feet | Leased % 1 | Annualized Rental Obligations Per Leased SF 2 | |||||||||||||||||||||||||||||||
| BOSTON | |||||||||||||||||||||||||||||||||||
| Office | |||||||||||||||||||||||||||||||||||
| 200 Clarendon Street | CBD Boston MA | 1 | 1,768,286 | 98.1 | % | $ | 70.13 | ||||||||||||||||||||||||||||
| 100 Federal Street (55% ownership) | CBD Boston MA | 1 | 1,238,461 | 99.5 | % | 64.81 | |||||||||||||||||||||||||||||
| 800 Boylston Street - The Prudential Center | CBD Boston MA | 1 | 1,235,538 | 93.9 | % | 64.53 | |||||||||||||||||||||||||||||
| 111 Huntington Avenue - The Prudential Center | CBD Boston MA | 1 | 860,455 | 100.0 | % | 69.15 | |||||||||||||||||||||||||||||
| Atlantic Wharf Office (55% ownership) | CBD Boston MA | 1 | 793,823 | 100.0 | % | 73.40 | |||||||||||||||||||||||||||||
Prudential Center (retail shops) 3, 4 | CBD Boston MA | 1 | 594,771 | 97.2 | % | 88.13 | |||||||||||||||||||||||||||||
| 101 Huntington Avenue - The Prudential Center | CBD Boston MA | 1 | 506,476 | 100.0 | % | 55.06 | |||||||||||||||||||||||||||||
The Hub on Causeway - Podium (50% ownership) 4, 5, 6 | CBD Boston MA | 1 | 382,497 | 97.7 | % | 62.39 | |||||||||||||||||||||||||||||
| 888 Boylston Street - The Prudential Center | CBD Boston MA | 1 | 364,079 | 99.8 | % | 77.16 | |||||||||||||||||||||||||||||
Star Market at the Prudential Center 3 | CBD Boston MA | 1 | 57,236 | 100.0 | % | 60.95 | |||||||||||||||||||||||||||||
| Subtotal | 10 | 7,801,622 | 98.2 | % | $ | 68.96 | |||||||||||||||||||||||||||||
145 Broadway 6 | East Cambridge MA | 1 | 490,086 | 98.5 | % | $ | 84.64 | ||||||||||||||||||||||||||||
| 355 Main Street | East Cambridge MA | 1 | 259,640 | 99.0 | % | 76.60 | |||||||||||||||||||||||||||||
| 90 Broadway | East Cambridge MA | 1 | 223,771 | 100.0 | % | 72.44 | |||||||||||||||||||||||||||||
| 255 Main Street | East Cambridge MA | 1 | 215,394 | 92.9 | % | 85.10 | |||||||||||||||||||||||||||||
| 300 Binney Street | East Cambridge MA | 1 | 195,191 | 100.0 | % | 59.02 | |||||||||||||||||||||||||||||
| 150 Broadway | East Cambridge MA | 1 | 177,226 | 100.0 | % | 81.09 | |||||||||||||||||||||||||||||
| 105 Broadway | East Cambridge MA | 1 | 152,664 | 100.0 | % | 69.92 | |||||||||||||||||||||||||||||
| 250 Binney Street | East Cambridge MA | 1 | 67,362 | 100.0 | % | 46.44 | |||||||||||||||||||||||||||||
| University Place | Mid-Cambridge MA | 1 | 195,282 | 100.0 | % | 53.15 | |||||||||||||||||||||||||||||
| Subtotal | 9 | 1,976,616 | 98.7 | % | $ | 73.72 | |||||||||||||||||||||||||||||
| Bay Colony Corporate Center | Route 128 Mass Turnpike MA | 4 | 1,001,136 | 86.5 | % | $ | 44.89 | ||||||||||||||||||||||||||||
| Reservoir Place | Route 128 Mass Turnpike MA | 1 | 526,985 | 90.1 | % | 38.16 | |||||||||||||||||||||||||||||
880 & 890 Winter Street 6 | Route 128 Mass Turnpike MA | 2 | 392,576 | 78.5 | % | 41.64 | |||||||||||||||||||||||||||||
| 140 Kendrick Street | Route 128 Mass Turnpike MA | 3 | 380,991 | 67.8 | % | 53.59 | |||||||||||||||||||||||||||||
| Weston Corporate Center | Route 128 Mass Turnpike MA | 1 | 356,995 | 100.0 | % | 57.10 | |||||||||||||||||||||||||||||
| Waltham Weston Corporate Center | Route 128 Mass Turnpike MA | 1 | 301,611 | 92.7 | % | 40.38 | |||||||||||||||||||||||||||||
| 230 CityPoint | Route 128 Mass Turnpike MA | 1 | 296,212 | 96.6 | % | 41.40 | |||||||||||||||||||||||||||||
| 10 CityPoint | Route 128 Mass Turnpike MA | 1 | 241,203 | 98.1 | % | 51.73 | |||||||||||||||||||||||||||||
20 CityPoint 6 | Route 128 Mass Turnpike MA | 1 | 211,476 | 62.4 | % | 51.60 | |||||||||||||||||||||||||||||
| 77 CityPoint | Route 128 Mass Turnpike MA | 1 | 209,712 | 95.4 | % | 50.16 | |||||||||||||||||||||||||||||
200 West Street 6, 7 | Route 128 Mass Turnpike MA | 1 | 134,921 | 100.0 | % | 39.57 | |||||||||||||||||||||||||||||
1265 Main Street (50% ownership) 5 | Route 128 Mass Turnpike MA | 1 | 114,969 | 100.0 | % | 44.87 | |||||||||||||||||||||||||||||
| Reservoir Place North | Route 128 Mass Turnpike MA | 1 | 73,258 | 100.0 | % | 45.05 | |||||||||||||||||||||||||||||
| 195 West Street | Route 128 Mass Turnpike MA | 1 | 63,500 | — | % | — | |||||||||||||||||||||||||||||
The Point 3 | Route 128 Mass Turnpike MA | 1 | 16,300 | 84.7 | % | 56.18 | |||||||||||||||||||||||||||||
| 191 Spring Street | Route 128 Northwest MA | 1 | 170,997 | 100.0 | % | 45.46 | |||||||||||||||||||||||||||||
| Lexington Office Park | Route 128 Northwest MA | 2 | 166,779 | 67.4 | % | 31.44 | |||||||||||||||||||||||||||||
| 201 Spring Street | Route 128 Northwest MA | 1 | 106,300 | 100.0 | % | 45.06 | |||||||||||||||||||||||||||||
| 33 Hayden Avenue | Route 128 Northwest MA | 1 | 80,876 | 100.0 | % | 62.35 | |||||||||||||||||||||||||||||
| 32 Hartwell Avenue | Route 128 Northwest MA | 1 | 69,154 | 100.0 | % | 28.71 | |||||||||||||||||||||||||||||
| 100 Hayden Avenue | Route 128 Northwest MA | 1 | 55,924 | 100.0 | % | 45.81 | |||||||||||||||||||||||||||||
| 181 Spring Street | Route 128 Northwest MA | 1 | 55,793 | 100.0 | % | 44.01 | |||||||||||||||||||||||||||||
| 92 Hayden Avenue | Route 128 Northwest MA | 1 | 31,100 | 100.0 | % | 43.99 | |||||||||||||||||||||||||||||
| 17 Hartwell Avenue | Route 128 Northwest MA | 1 | 30,000 | 100.0 | % | 48.17 | |||||||||||||||||||||||||||||
| Subtotal | 31 | 5,088,768 | 87.4 | % | $ | 45.38 | |||||||||||||||||||||||||||||
| Boston Office Total: | 50 | 14,867,006 | 94.6 | % | $ | 62.12 | |||||||||||||||||||||||||||||
| Residential | |||||||||||||||||||||||||||||||||||
Hub50House (440 units) (50% ownership) 5, 6 | CBD Boston MA | 1 | 320,444 | ||||||||||||||||||||||||||||||||
| The Lofts at Atlantic Wharf (86 units) | CBD Boston MA | 1 | 87,097 | ||||||||||||||||||||||||||||||||
| Proto Kendall Square (280 units) | East Cambridge MA | 1 | 166,717 | ||||||||||||||||||||||||||||||||
| Boston Residential Total: | 3 | 574,258 | |||||||||||||||||||||||||||||||||
22
| Q3 2020 | ||||
| In-service property listing (continued) | |||||
as of September 30, 2020
| Sub Market | Number of Buildings | Square Feet | Leased % 1 | Annualized Rental Obligations Per Leased SF 2 | |||||||||||||||||||||||||||||||
| BOSTON (continued) | |||||||||||||||||||||||||||||||||||
| Hotel | |||||||||||||||||||||||||||||||||||
| Boston Marriott Cambridge (437 rooms) | East Cambridge MA | 1 | 334,260 | ||||||||||||||||||||||||||||||||
| Boston Hotel Total: | 1 | 334,260 | |||||||||||||||||||||||||||||||||
| Boston Total: | 54 | 15,775,524 | |||||||||||||||||||||||||||||||||
| LOS ANGELES | |||||||||||||||||||||||||||||||||||
| Office | |||||||||||||||||||||||||||||||||||
Colorado Center (50% ownership) 5 | West Los Angeles CA | 6 | 1,128,600 | 100.0 | % | $ | 70.81 | ||||||||||||||||||||||||||||
Santa Monica Business Park (55% ownership) 5 | West Los Angeles CA | 14 | 1,103,849 | 93.8 | % | 60.04 | |||||||||||||||||||||||||||||
Santa Monica Business Park Retail (55% ownership) 3, 5 | West Los Angeles CA | 7 | 74,404 | 90.1 | % | 65.18 | |||||||||||||||||||||||||||||
| Subtotal | 27 | 2,306,853 | 96.7 | % | $ | 65.67 | |||||||||||||||||||||||||||||
| Los Angeles Total: | 27 | 2,306,853 | 96.7 | % | $ | 65.67 | |||||||||||||||||||||||||||||
| NEW YORK | |||||||||||||||||||||||||||||||||||
| Office | |||||||||||||||||||||||||||||||||||
767 Fifth Avenue (The GM Building) (60% ownership) 4 | Plaza District NY | 1 | 1,957,768 | 89.3 | % | $ | 161.75 | ||||||||||||||||||||||||||||
| 399 Park Avenue | Park Avenue NY | 1 | 1,576,437 | 88.9 | % | 102.14 | |||||||||||||||||||||||||||||
| 601 Lexington Avenue (55% ownership) | Park Avenue NY | 1 | 1,445,155 | 97.6 | % | 101.99 | |||||||||||||||||||||||||||||
| 599 Lexington Avenue | Park Avenue NY | 1 | 1,062,708 | 99.3 | % | 92.77 | |||||||||||||||||||||||||||||
Times Square Tower (55% ownership) 4 | Times Square NY | 1 | 1,250,578 | 94.7 | % | 80.87 | |||||||||||||||||||||||||||||
| 250 West 55th Street | Times Square / West Side NY | 1 | 966,965 | 99.7 | % | 96.67 | |||||||||||||||||||||||||||||
| 510 Madison Avenue | Fifth/Madison Avenue NY | 1 | 355,083 | 98.4 | % | 141.87 | |||||||||||||||||||||||||||||
| Subtotal | 7 | 8,614,694 | 94.2 | % | $ | 111.71 | |||||||||||||||||||||||||||||
| 510 Carnegie Center | Princeton NJ | 1 | 234,160 | — | % | $ | — | ||||||||||||||||||||||||||||
| 206 Carnegie Center | Princeton NJ | 1 | 161,763 | 100.0 | % | 35.17 | |||||||||||||||||||||||||||||
| 210 Carnegie Center | Princeton NJ | 1 | 159,468 | 79.2 | % | 37.31 | |||||||||||||||||||||||||||||
| 212 Carnegie Center | Princeton NJ | 1 | 151,355 | 76.6 | % | 36.35 | |||||||||||||||||||||||||||||
| 214 Carnegie Center | Princeton NJ | 1 | 146,979 | 43.2 | % | 46.25 | |||||||||||||||||||||||||||||
| 506 Carnegie Center | Princeton NJ | 1 | 138,616 | 80.5 | % | 36.81 | |||||||||||||||||||||||||||||
| 508 Carnegie Center | Princeton NJ | 1 | 134,433 | 100.0 | % | 41.37 | |||||||||||||||||||||||||||||
| 202 Carnegie Center | Princeton NJ | 1 | 134,068 | 91.2 | % | 40.59 | |||||||||||||||||||||||||||||
| 804 Carnegie Center | Princeton NJ | 1 | 130,000 | 100.0 | % | 39.63 | |||||||||||||||||||||||||||||
| 504 Carnegie Center | Princeton NJ | 1 | 121,990 | 100.0 | % | 33.52 | |||||||||||||||||||||||||||||
| 101 Carnegie Center | Princeton NJ | 1 | 121,620 | 100.0 | % | 38.10 | |||||||||||||||||||||||||||||
| 502 Carnegie Center | Princeton NJ | 1 | 121,460 | 100.0 | % | 37.53 | |||||||||||||||||||||||||||||
| 701 Carnegie Center | Princeton NJ | 1 | 120,000 | 100.0 | % | 42.81 | |||||||||||||||||||||||||||||
| 104 Carnegie Center | Princeton NJ | 1 | 102,930 | 63.6 | % | 38.56 | |||||||||||||||||||||||||||||
| 103 Carnegie Center | Princeton NJ | 1 | 96,332 | 68.0 | % | 33.05 | |||||||||||||||||||||||||||||
| 105 Carnegie Center | Princeton NJ | 1 | 69,955 | 56.3 | % | 35.52 | |||||||||||||||||||||||||||||
| 302 Carnegie Center | Princeton NJ | 1 | 64,926 | 89.3 | % | 37.00 | |||||||||||||||||||||||||||||
| 211 Carnegie Center | Princeton NJ | 1 | 47,025 | 100.0 | % | 38.06 | |||||||||||||||||||||||||||||
| 201 Carnegie Center | Princeton NJ | — | 6,500 | 100.0 | % | 38.84 | |||||||||||||||||||||||||||||
| Subtotal | 18 | 2,263,580 | 76.5 | % | $ | 38.11 | |||||||||||||||||||||||||||||
| New York Total: | 25 | 10,878,274 | 90.5 | % | $ | 98.75 | |||||||||||||||||||||||||||||
| SAN FRANCISCO | |||||||||||||||||||||||||||||||||||
| Office | |||||||||||||||||||||||||||||||||||
| Salesforce Tower | CBD San Francisco CA | 1 | 1,420,682 | 100.0 | % | $ | 102.31 | ||||||||||||||||||||||||||||
| Embarcadero Center Four | CBD San Francisco CA | 1 | 941,138 | 96.2 | % | 80.66 | |||||||||||||||||||||||||||||
| Embarcadero Center One | CBD San Francisco CA | 1 | 822,102 | 91.9 | % | 76.58 | |||||||||||||||||||||||||||||
| Embarcadero Center Two | CBD San Francisco CA | 1 | 799,208 | 91.2 | % | 78.39 | |||||||||||||||||||||||||||||
| Embarcadero Center Three | CBD San Francisco CA | 1 | 785,698 | 93.6 | % | 75.00 | |||||||||||||||||||||||||||||
23
| Q3 2020 | ||||
| In-service property listing (continued) | |||||
as of September 30, 2020
| Sub Market | Number of Buildings | Square Feet | Leased % 1 | Annualized Rental Obligations Per Leased SF 2 | |||||||||||||||||||||||||||||||
| SAN FRANCISCO (continued) | |||||||||||||||||||||||||||||||||||
| 680 Folsom Street | CBD San Francisco CA | 2 | 524,793 | 100.0 | % | 69.00 | |||||||||||||||||||||||||||||
| 535 Mission Street | CBD San Francisco CA | 1 | 307,235 | 95.7 | % | 84.59 | |||||||||||||||||||||||||||||
| 690 Folsom Street | CBD San Francisco CA | 1 | 26,080 | 100.0 | % | 63.63 | |||||||||||||||||||||||||||||
| Subtotal | 9 | 5,626,936 | 95.8 | % | $ | 83.73 | |||||||||||||||||||||||||||||
Gateway Commons (55% ownership) 5, 6, 8 | South San Francisco CA | 6 | 1,070,393 | 81.5 | % | $ | 53.31 | ||||||||||||||||||||||||||||
| Mountain View Research Park | Mountain View CA | 15 | 542,264 | 76.3 | % | 67.87 | |||||||||||||||||||||||||||||
| 2440 West El Camino Real | Mountain View CA | 1 | 141,392 | 87.2 | % | 84.58 | |||||||||||||||||||||||||||||
| 453 Ravendale Drive | Mountain View CA | 1 | 29,620 | 85.8 | % | 48.54 | |||||||||||||||||||||||||||||
3625-3635 Peterson Way 9 | Santa Clara CA | 1 | 218,366 | 100.0 | % | 24.17 | |||||||||||||||||||||||||||||
North First Business Park 9 | San Jose CA | 5 | 190,636 | 61.9 | % | 26.71 | |||||||||||||||||||||||||||||
| Subtotal | 29 | 2,192,671 | 80.8 | % | $ | 53.47 | |||||||||||||||||||||||||||||
| San Francisco Office Total: | 38 | 7,819,607 | 91.6 | % | $ | 76.22 | |||||||||||||||||||||||||||||
| Residential | |||||||||||||||||||||||||||||||||||
The Skylyne (402 units) 6 | CBD Oakland CA | 1 | 330,996 | ||||||||||||||||||||||||||||||||
| San Francisco Residential Total: | 1 | 330,996 | |||||||||||||||||||||||||||||||||
| San Francisco Total: | 39 | 8,150,603 | |||||||||||||||||||||||||||||||||
| WASHINGTON, DC | |||||||||||||||||||||||||||||||||||
| Office | |||||||||||||||||||||||||||||||||||
Metropolitan Square (20% ownership) 5 | East End Washington DC | 1 | 654,145 | 62.6 | % | $ | 67.82 | ||||||||||||||||||||||||||||
901 New York Avenue (25% ownership) 5 | East End Washington DC | 1 | 541,739 | 74.9 | % | 66.06 | |||||||||||||||||||||||||||||
| 601 Massachusetts Avenue | East End Washington DC | 1 | 478,818 | 98.4 | % | 84.10 | |||||||||||||||||||||||||||||
Market Square North (50% ownership) 5 | East End Washington DC | 1 | 417,979 | 79.3 | % | 69.63 | |||||||||||||||||||||||||||||
| 2200 Pennsylvania Avenue | CBD Washington DC | 1 | 458,831 | 100.0 | % | 98.64 | |||||||||||||||||||||||||||||
| 1330 Connecticut Avenue | CBD Washington DC | 1 | 253,941 | 89.4 | % | 71.52 | |||||||||||||||||||||||||||||
| Sumner Square | CBD Washington DC | 1 | 209,556 | 97.0 | % | 54.82 | |||||||||||||||||||||||||||||
500 North Capitol Street, N.W. (30% ownership) 5 | Capitol Hill Washington DC | 1 | 230,900 | 98.5 | % | 79.23 | |||||||||||||||||||||||||||||
Capital Gallery 6, 8 | Southwest Washington DC | 1 | 176,078 | 91.2 | % | 56.57 | |||||||||||||||||||||||||||||
| Subtotal | 9 | 3,421,987 | 84.6 | % | $ | 74.78 | |||||||||||||||||||||||||||||
| South of Market | Reston VA | 3 | 623,250 | 71.9 | % | $ | 55.74 | ||||||||||||||||||||||||||||
| Fountain Square | Reston VA | 2 | 505,492 | 76.1 | % | 53.77 | |||||||||||||||||||||||||||||
| One Freedom Square | Reston VA | 1 | 432,289 | 66.9 | % | 51.87 | |||||||||||||||||||||||||||||
| Two Freedom Square | Reston VA | 1 | 422,349 | 100.0 | % | 49.53 | |||||||||||||||||||||||||||||
| One and Two Discovery Square | Reston VA | 2 | 366,989 | 100.0 | % | 50.79 | |||||||||||||||||||||||||||||
| One Reston Overlook | Reston VA | 1 | 319,519 | 100.0 | % | 44.91 | |||||||||||||||||||||||||||||
17Fifty Presidents Street 6 | Reston VA | 1 | 275,809 | 100.0 | % | 59.13 | |||||||||||||||||||||||||||||
| Reston Corporate Center | Reston VA | 2 | 261,046 | 100.0 | % | 44.17 | |||||||||||||||||||||||||||||
| Democracy Tower | Reston VA | 1 | 259,441 | 98.4 | % | 58.78 | |||||||||||||||||||||||||||||
Fountain Square Retail 3 | Reston VA | 1 | 216,591 | 87.1 | % | 44.60 | |||||||||||||||||||||||||||||
| Two Reston Overlook | Reston VA | 1 | 134,615 | — | % | — | |||||||||||||||||||||||||||||
| Subtotal | 16 | 3,817,390 | 84.1 | % | $ | 51.62 | |||||||||||||||||||||||||||||
| Wisconsin Place Office | Montgomery County MD | 1 | 299,217 | 82.3 | % | $ | 58.88 | ||||||||||||||||||||||||||||
| Kingstowne Two | Springfield VA | 1 | 156,071 | 67.6 | % | 37.84 | |||||||||||||||||||||||||||||
| Kingstowne One | Springfield VA | 1 | 150,957 | 93.0 | % | 38.92 | |||||||||||||||||||||||||||||
| 7601 Boston Boulevard | Springfield VA | 1 | 108,286 | 100.0 | % | 32.77 | |||||||||||||||||||||||||||||
| 7435 Boston Boulevard | Springfield VA | 1 | 103,557 | 83.4 | % | 24.39 | |||||||||||||||||||||||||||||
| 8000 Grainger Court | Springfield VA | 1 | 88,775 | — | % | — | |||||||||||||||||||||||||||||
Kingstowne Retail 3 | Springfield VA | 1 | 88,288 | 94.3 | % | 37.37 | |||||||||||||||||||||||||||||
| 7500 Boston Boulevard | Springfield VA | 1 | 79,971 | 100.0 | % | 19.30 | |||||||||||||||||||||||||||||
| 7501 Boston Boulevard | Springfield VA | 1 | 75,756 | 100.0 | % | 29.64 | |||||||||||||||||||||||||||||
| 7450 Boston Boulevard | Springfield VA | 1 | 62,402 | 100.0 | % | 17.64 | |||||||||||||||||||||||||||||
24
| Q3 2020 | ||||
| In-service property listing (continued) | |||||
as of September 30, 2020
| Sub Market | Number of Buildings | Square Feet | Leased % 1 | Annualized Rental Obligations Per Leased SF 2 | ||||||||||||||||||||||||||||||||||
| WASHINGTON, DC (continued) | ||||||||||||||||||||||||||||||||||||||
| 7374 Boston Boulevard | Springfield VA | 1 | 57,321 | 100.0 | % | 18.37 | ||||||||||||||||||||||||||||||||
| 8000 Corporate Court | Springfield VA | 1 | 52,539 | 100.0 | % | 16.15 | ||||||||||||||||||||||||||||||||
| 7451 Boston Boulevard | Springfield VA | 1 | 45,615 | 67.4 | % | 27.78 | ||||||||||||||||||||||||||||||||
| 7300 Boston Boulevard | Springfield VA | 1 | 32,000 | 100.0 | % | 23.18 | ||||||||||||||||||||||||||||||||
| 7375 Boston Boulevard | Springfield VA | 1 | 26,865 | 100.0 | % | 28.25 | ||||||||||||||||||||||||||||||||
Annapolis Junction Building Seven (50% ownership) 5 | Anne Arundel County MD | 1 | 127,229 | 100.0 | % | 35.84 | ||||||||||||||||||||||||||||||||
Annapolis Junction Building Six (50% ownership) 5 | Anne Arundel County MD | 1 | 119,339 | 75.2 | % | 32.09 | ||||||||||||||||||||||||||||||||
| Subtotal | 17 | 1,674,188 | 83.9 | % | $ | 35.12 | ||||||||||||||||||||||||||||||||
| Washington, DC Office Total: | 42 | 8,913,565 | 84.3 | % | $ | 57.42 | ||||||||||||||||||||||||||||||||
| Residential | ||||||||||||||||||||||||||||||||||||||
| Signature at Reston (508 units) | Reston VA | 1 | 517,783 | |||||||||||||||||||||||||||||||||||
| The Avant at Reston Town Center (359 units) | Reston VA | 1 | 355,374 | |||||||||||||||||||||||||||||||||||
| Washington, DC Residential Total: | 2 | 873,157 | ||||||||||||||||||||||||||||||||||||
| Washington, DC Total: | 44 | 9,786,722 | ||||||||||||||||||||||||||||||||||||
| Total In-Service Properties: | 189 | 46,897,976 | 91.1 | % | 10 | $ | 72.77 | 10 | ||||||||||||||||||||||||||||||
_____________
1Represents signed leases for which revenue recognition has commenced in accordance with GAAP.
2See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
3This is a retail property.
4Includes 275,868 square feet at Prudential Center (retail shops), 66,806 square feet at The Hub on Causeway - Podium, 343,572 square feet at Times Square Tower and 30,094 square feet at 767 Fifth Avenue (The GM building) of leases terminated by the Company where the tenant is still occupying the space.
5This is an unconsolidated joint venture property.
6Not included in the Same Property analysis.
7A portion of this property is under redevelopment. For additional detail, see page 15.
8For additional detail, see page 14.
9Property held for redevelopment.
10Excludes Hotel and Residential properties. For additional detail, see pages 20-21.
25
| Q3 2020 | ||||
| Top 20 tenants listing and portfolio tenant diversification | |||||
as of September 30, 2020
TOP 20 TENANTS
| No. | Tenant | BXP’s Share of Annualized Rental Obligations 1 | Weighted Average Remaining Lease Term (years) 2 | ||||||||||||||||||||
| 1 | salesforce.com | 3.49 | % | 11.7 | |||||||||||||||||||
| 2 | Arnold & Porter Kaye Scholer | 2.81 | % | 13.1 | |||||||||||||||||||
| 3 | Akamai Technologies | 2.21 | % | 14.1 | |||||||||||||||||||
| 4 | Biogen | 1.82 | % | 6.1 | |||||||||||||||||||
| 5 | Kirkland & Ellis | 1.56 | % | 16.6 | |||||||||||||||||||
| 6 | Shearman & Sterling | 1.56 | % | 13.6 | |||||||||||||||||||
| 7 | 1.49 | % | 15.7 | ||||||||||||||||||||
| 8 | Ropes & Gray | 1.40 | % | 9.3 | |||||||||||||||||||
| 9 | WeWork | 1.31 | % | 12.8 | |||||||||||||||||||
| 10 | Weil Gotshal & Manges | 1.22 | % | 13.6 | |||||||||||||||||||
| 11 | US Government | 1.14 | % | 4.8 | |||||||||||||||||||
| 12 | Wellington Management | 1.09 | % | 6.8 | |||||||||||||||||||
| 13 | Microsoft | 1.01 | % | 10.0 | |||||||||||||||||||
| 14 | Aramis (Estee Lauder) | 0.97 | % | 17.0 | |||||||||||||||||||
| 15 | Morrison & Foerster | 0.89 | % | 9.7 | |||||||||||||||||||
| 16 | O’Melveny & Myers | 0.88 | % | 4.2 | |||||||||||||||||||
| 17 | Millennium Management | 0.87 | % | 10.3 | |||||||||||||||||||
| 18 | Bank of America | 0.85 | % | 15.2 | |||||||||||||||||||
| 19 | Mass Financial Services | 0.85 | % | 7.7 | |||||||||||||||||||
| 20 | Under Armour | 0.81 | % | 13.6 | |||||||||||||||||||
| BXP’s Share of Annualized Rental Obligations | 28.23 | % | |||||||||||||||||||||
BXP’s Share of Square Feet 1 | 22.91 | % | |||||||||||||||||||||
| Weighted Average Remaining Lease Term (years) | 11.6 | ||||||||||||||||||||||
NOTABLE SIGNED DEALS 3
| Tenant | Property | Square Feet | ||||||||||||
| Marriott International | 7750 Wisconsin Avenue | 734,000 | ||||||||||||
Fannie Mae 4 | Reston Next (formerly Reston Gateway) | 703,000 | ||||||||||||
| Verizon | 100 Causeway Street | 440,000 | ||||||||||||
| 325 Main Street | 379,000 | |||||||||||||
| Wilmer Cutler Pickering Hale | 2100 Pennsylvania Avenue | 287,000 | ||||||||||||
| Microsoft | Two Freedom Square | 222,500 | ||||||||||||
Volkswagen Group of America 4 | Reston Next (formerly Reston Gateway) | 196,000 | ||||||||||||
TENANT DIVERSIFICATION 1
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2Based on BXP’s Share of Annualized Rental Obligations.
3Represents leases signed with occupancy commencing in the future. The number of square feet is an estimate.
4As of October 27, 2020.
26
| Q3 2020 | ||||
| Occupancy by location | |||||
as of September 30, 2020
TOTAL IN-SERVICE OFFICE PROPERTIES 1 - Quarter-over-Quarter
| CBD | Suburban | Total | ||||||||||||||||||||||||||||||||||||
| Location | 30-Sep-20 | 30-Jun-20 | 30-Sep-20 | 30-Jun-20 | 30-Sep-20 | 30-Jun-20 | ||||||||||||||||||||||||||||||||
| Boston | 98.3 | % | 98.7 | % | 87.4 | % | 87.3 | % | 94.6 | % | 94.8 | % | ||||||||||||||||||||||||||
| Los Angeles | 96.7 | % | 95.9 | % | — | % | — | % | 96.7 | % | 95.9 | % | ||||||||||||||||||||||||||
| New York | 94.2 | % | 94.2 | % | 76.5 | % | 86.2 | % | 90.5 | % | 92.6 | % | ||||||||||||||||||||||||||
| San Francisco | 95.8 | % | 97.4 | % | 80.8 | % | 82.3 | % | 91.6 | % | 93.2 | % | ||||||||||||||||||||||||||
| Washington, DC | 84.6 | % | 83.3 | % | 84.1 | % | 85.7 | % | 84.3 | % | 84.8 | % | ||||||||||||||||||||||||||
| Total Portfolio | 94.9 | % | 95.2 | % | 83.6 | % | 85.8 | % | 91.1 | % | 92.0 | % | ||||||||||||||||||||||||||
SAME PROPERTY OFFICE PROPERTIES 1, 2 - Year-over-Year
| CBD | Suburban | Total | ||||||||||||||||||||||||||||||||||||
| Location | 30-Sep-20 | 30-Sep-19 | 30-Sep-20 | 30-Sep-19 | 30-Sep-20 | 30-Sep-19 | ||||||||||||||||||||||||||||||||
| Boston | 98.3 | % | 99.0 | % | 89.4 | % | 89.5 | % | 95.3 | % | 95.8 | % | ||||||||||||||||||||||||||
| Los Angeles | 96.7 | % | 96.8 | % | — | % | — | % | 96.7 | % | 96.8 | % | ||||||||||||||||||||||||||
| New York | 94.2 | % | 92.8 | % | 76.5 | % | 85.2 | % | 90.5 | % | 91.2 | % | ||||||||||||||||||||||||||
| San Francisco | 95.8 | % | 96.8 | % | 80.1 | % | 90.0 | % | 93.2 | % | 95.7 | % | ||||||||||||||||||||||||||
| Washington, DC | 84.3 | % | 86.5 | % | 83.2 | % | 89.5 | % | 83.6 | % | 88.3 | % | ||||||||||||||||||||||||||
| Total Portfolio | 94.9 | % | 95.1 | % | 83.9 | % | 88.8 | % | 91.4 | % | 93.1 | % | ||||||||||||||||||||||||||
_____________
1Represents 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.
2See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
27
| Q3 2020 | ||||
| Capital structure | |||||
(in thousands, except percentages)
CONSOLIDATED DEBT
| Aggregate Principal | |||||
| Mortgage Notes Payable | $ | 2,936,359 | |||
| Unsecured Line of Credit | — | ||||
| Unsecured Term Loan | 500,000 | ||||
| Unsecured Senior Notes, at face value | 9,700,000 | ||||
| Outstanding Principal | 13,136,359 | ||||
| Discount on Unsecured Senior Notes | (16,880) | ||||
| Deferred Financing Costs, Net | (71,318) | ||||
| Consolidated Debt | $ | 13,048,161 | |||
MORTGAGE NOTES PAYABLE
| Interest Rate | ||||||||||||||||||||||||||
| Property | Maturity Date | GAAP | Stated | Outstanding Principal | ||||||||||||||||||||||
| University Place | August 1, 2021 | 6.99% | 6.94% | $ | 2,045 | |||||||||||||||||||||
| 601 Lexington Avenue (55% ownership) | April 10, 2022 | 4.79% | 4.75% | 634,314 | ||||||||||||||||||||||
| 767 Fifth Avenue (The GM Building) (60% ownership) | June 9, 2027 | 3.64% | 3.43% | 2,300,000 | ||||||||||||||||||||||
| Total | $ | 2,936,359 | ||||||||||||||||||||||||
BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1
| Maturity Date | Effective Yield (on issue date) | Coupon | Outstanding Principal | |||||||||||||||||||||||
| 10 Year Unsecured Senior Notes | May 15, 2021 | 4.29% | 4.13% | $ | 850,000 | |||||||||||||||||||||
| 11 Year Unsecured Senior Notes | February 1, 2023 | 3.95% | 3.85% | 1,000,000 | ||||||||||||||||||||||
| 10.5 Year Unsecured Senior Notes | September 1, 2023 | 3.28% | 3.13% | 500,000 | ||||||||||||||||||||||
| 10.5 Year Unsecured Senior Notes | February 1, 2024 | 3.92% | 3.80% | 700,000 | ||||||||||||||||||||||
| 7 Year Unsecured Senior Notes | January 15, 2025 | 3.35% | 3.20% | 850,000 | ||||||||||||||||||||||
| 10 Year Unsecured Senior Notes | February 1, 2026 | 3.77% | 3.65% | 1,000,000 | ||||||||||||||||||||||
| 10 Year Unsecured Senior Notes | October 1, 2026 | 3.50% | 2.75% | 1,000,000 | ||||||||||||||||||||||
10 Year Unsecured Senior Notes (“green bonds”) | December 1, 2028 | 4.63% | 4.50% | 1,000,000 | ||||||||||||||||||||||
10 Year Unsecured Senior Notes (“green bonds”) | June 21, 2029 | 3.51% | 3.40% | 850,000 | ||||||||||||||||||||||
10.5 Year Unsecured Senior Notes | March 15, 2030 | 2.98% | 2.90% | 700,000 | ||||||||||||||||||||||
10.75 Year Unsecured Senior Notes | January 30, 2031 | 3.34% | 3.25% | 1,250,000 | ||||||||||||||||||||||
| $ | 9,700,000 | |||||||||||||||||||||||||
CAPITALIZATION
| Shares/Units | Common Stock | Equivalent | ||||||||||||||||||
| Outstanding | Equivalents | Value 2 | ||||||||||||||||||
| Common Stock | 155,636 | 155,636 | $ | 12,497,571 | ||||||||||||||||
| Common Operating Partnership Units | 17,458 | 17,458 | 1,401,877 | |||||||||||||||||
5.25% Series B Cumulative Redeemable Preferred Stock (callable on or after March 27, 2018) | 80 | — | 200,000 | |||||||||||||||||
| Total Equity | 173,094 | $ | 14,099,448 | |||||||||||||||||
Consolidated Debt (A) | $ | 13,048,161 | ||||||||||||||||||
Add: BXP’s share of unconsolidated joint venture debt 3 | 1,114,031 | |||||||||||||||||||
Less: Partners’ share of consolidated debt 4 | 1,195,957 | |||||||||||||||||||
BXP’s Share of Debt 5 (B) | $ | 12,966,235 | ||||||||||||||||||
Consolidated Market Capitalization (C) | $ | 27,147,609 | ||||||||||||||||||
BXP’s Share of Market Capitalization 5 (D) | $ | 27,065,683 | ||||||||||||||||||
Consolidated Debt/Consolidated Market Capitalization (A÷C) | 48.06 | % | ||||||||||||||||||
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) | 47.91 | % | ||||||||||||||||||
_____________
1All unsecured senior notes are rated BBB+ (stable), and Baa1 (stable) by S&P and Moody’s, respectively.
2Values based on September 30, 2020 closing price of $80.30 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.
3Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 35.
4Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 33.
5See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
28
| Q3 2020 | ||||
Debt analysis 1 | |||||
as of September 30, 2020
(dollars in thousands)
UNSECURED CREDIT FACILITY - MATURES APRIL 24, 2022
| Facility | Outstanding at September 30, 2020 | Letters of Credit | Remaining Capacity at September 30, 2020 | |||||||||||||||||||||||
| Unsecured Line of Credit | $ | 1,500,000 | $ | — | $ | 2,457 | $ | 1,497,543 | ||||||||||||||||||
| Unsecured Term Loan | $ | 500,000 | $ | 500,000 | N/A | $ | — | |||||||||||||||||||
UNSECURED AND SECURED DEBT ANALYSIS
| Weighted Average | ||||||||||||||||||||||||||
| % of Total Debt | Stated Rates | GAAP Rates 2 | Maturity (years) | |||||||||||||||||||||||
| Unsecured Debt | 77.68 | % | 3.50 | % | 3.58 | % | 5.6 | |||||||||||||||||||
| Secured Debt | 22.32 | % | 3.72 | % | 3.89 | % | 5.6 | |||||||||||||||||||
| Consolidated Debt | 100.00 | % | 3.55 | % | 3.65 | % | 5.6 | |||||||||||||||||||
FLOATING AND FIXED RATE DEBT ANALYSIS
| Weighted Average | ||||||||||||||||||||||||||
| % of Total Debt | Stated Rates | GAAP Rates 2 | Maturity (years) | |||||||||||||||||||||||
| Floating Rate Debt | 3.83 | % | 1.09 | % | 1.18 | % | 1.6 | |||||||||||||||||||
| Fixed Rate Debt | 96.17 | % | 3.65 | % | 3.75 | % | 5.8 | |||||||||||||||||||
| Consolidated Debt | 100.00 | % | 3.55 | % | 3.65 | % | 5.6 | |||||||||||||||||||
_____________
1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 35.
2The 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.
29
| Q3 2020 | ||||
| Senior unsecured debt covenant compliance ratios | |||||
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 Mellon Trust Company, N.A., as trustee, as supplemented from time to time (the “Indenture”), which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the Indenture.
This section presents such ratios as of September 30, 2020 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios 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.
COVENANT RATIOS AND RELATED DATA
| Senior Notes Issued Prior to December 4, 2017 | Senior Notes Issued On or After December 4, 2017 | ||||||||||||||||
| Test | Actual | ||||||||||||||||
Total Outstanding Debt/Total Assets 1 | Less than 60% | 46.7 | % | 43.6 | % | ||||||||||||
| Secured Debt/Total Assets | Less than 50% | 13.9 | % | 13.0 | % | ||||||||||||
| Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) | Greater than 1.50x | 3.65 | 3.65 | ||||||||||||||
| Unencumbered Assets/ Unsecured Debt | Greater than 150% | 229.3 | % | 252.1 | % | ||||||||||||
_____________
1Capitalized 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 (x) annualized EBITDA capitalized at 7.0% and (y) the undepreciated book value as determined under GAAP.
30
| Q3 2020 | ||||
Net Debt to EBITDAre | |||||
(dollars in thousands)
Reconciliation of BXP’s Share of EBITDAre and BXP’s Share of EBITDAre – cash 1
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 89,854 | $ | 266,525 | ||||||||||
| Add: | ||||||||||||||
| Preferred dividends | 2,625 | 2,625 | ||||||||||||
| Noncontrolling interest - common units of the Operating Partnership | 10,020 | 30,197 | ||||||||||||
| Noncontrolling interest in property partnerships | 15,561 | (767) | ||||||||||||
| Net income | 118,060 | 298,580 | ||||||||||||
| Add: | ||||||||||||||
| Interest expense | 110,993 | 107,142 | ||||||||||||
| Depreciation and amortization expense | 166,456 | 178,188 | ||||||||||||
| Less: | ||||||||||||||
| (Losses) gains on sales of real estate | (209) | 203,767 | ||||||||||||
| (Loss) income from unconsolidated joint ventures | (6,873) | 1,832 | ||||||||||||
| Add: | ||||||||||||||
BXP’s share of EBITDAre from unconsolidated joint ventures 2 | 24,851 | 27,807 | ||||||||||||
EBITDAre 1 | 427,442 | 406,118 | ||||||||||||
| Less: | ||||||||||||||
Partners’ share of EBITDAre from consolidated joint ventures 3 | 42,154 | 32,451 | ||||||||||||
BXP’s Share of EBITDAre 1 (A) | 385,288 | 373,667 | ||||||||||||
| Add: | ||||||||||||||
| Stock-based compensation expense | 8,253 | 10,374 | ||||||||||||
BXP’s Share of straight-line ground rent expense adjustment 1 | 940 | 992 | ||||||||||||
BXP’s Share of lease transaction costs that qualify as rent inducements 1 | 2,965 | 1,309 | ||||||||||||
| Less: | ||||||||||||||
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 | 828 | — | ||||||||||||
BXP’s Share of straight-line rent 1 | 40,478 | 22,747 | ||||||||||||
BXP’s Share of fair value lease revenue 1 | 979 | 2,548 | ||||||||||||
BXP’s Share of EBITDAre – cash 1 | $ | 355,161 | $ | 361,047 | ||||||||||
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) | $ | 1,541,152 | $ | 1,494,668 | ||||||||||
Reconciliation of BXP’s Share of Net Debt 1
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
| Consolidated debt | $ | 13,048,161 | $ | 13,048,579 | ||||||||||
| Add: | ||||||||||||||
| Special dividend payable | — | — | ||||||||||||
| Less: | ||||||||||||||
| Cash and cash equivalents | 1,714,783 | 1,691,047 | ||||||||||||
| Cash held in escrow for 1031 exchange | — | 250,607 | ||||||||||||
Net debt 1 | 11,333,378 | 11,106,925 | ||||||||||||
| Add: | ||||||||||||||
BXP’s share of unconsolidated joint venture debt 2 | 1,114,031 | 1,067,400 | ||||||||||||
| Partners’ share of cash and cash equivalents from consolidated joint ventures | 116,295 | 129,709 | ||||||||||||
| Less: | ||||||||||||||
| BXP’s share of cash and cash equivalents from unconsolidated joint ventures | 87,628 | 78,768 | ||||||||||||
Partners’ share of consolidated joint venture debt 3 | 1,195,957 | 1,197,276 | ||||||||||||
BXP’s Share of Net Debt 1 (B) | $ | 11,280,119 | $ | 11,027,990 | ||||||||||
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] | 7.32 | 7.38 | ||||||||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended September 30, 2020, see pages 35 and 63.
3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended September 30, 2020, see pages 33 and 61.
4BXP’s Share of EBITDAre is annualized and calculated as the product of such amount for the quarter multiplied by four (4).
31
| Q3 2020 | ||||
| Debt ratios | |||||
(in thousands, except for ratio amounts)
INTEREST COVERAGE RATIO 1
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
BXP’s Share of interest expense 1 | $ | 111,544 | $ | 107,313 | ||||||||||
| Less: | ||||||||||||||
BXP’s Share of hedge amortization 1 | 1,446 | 1,446 | ||||||||||||
BXP’s Share of amortization of financing costs 1 | 3,823 | 3,584 | ||||||||||||
Adjusted interest expense excluding capitalized interest (A) | 106,275 | 102,283 | ||||||||||||
| Add: | ||||||||||||||
BXP’s Share of capitalized interest 1 | 13,255 | 13,705 | ||||||||||||
Adjusted interest expense including capitalized interest (B) | $ | 119,530 | $ | 115,988 | ||||||||||
BXP’s Share of EBITDAre – cash 1, 2 (C) | $ | 355,161 | $ | 361,047 | ||||||||||
Interest Coverage Ratio (excluding capitalized interest) (C÷A) | 3.34 | 3.53 | ||||||||||||
Interest Coverage Ratio (including capitalized interest) (C÷B) | 2.97 | 3.11 | ||||||||||||
FIXED CHARGE COVERAGE RATIO 1
| Three Months Ended | ||||||||||||||
| 30-Sep-20 | 30-Jun-20 | |||||||||||||
BXP’s Share of interest expense 1 | $ | 111,544 | $ | 107,313 | ||||||||||
| Less: | ||||||||||||||
BXP’s Share of hedge amortization 1 | 1,446 | 1,446 | ||||||||||||
BXP’s Share of amortization of financing costs 1 | 3,823 | 3,584 | ||||||||||||
| Add: | ||||||||||||||
BXP’s Share of capitalized interest 1 | 13,255 | 13,705 | ||||||||||||
BXP’s Share of maintenance capital expenditures 1 | 21,722 | 16,246 | ||||||||||||
| Hotel improvements, equipment upgrades and replacements | 69 | 36 | ||||||||||||
| Preferred dividends/distributions | 2,625 | 2,625 | ||||||||||||
Total Fixed Charges (A) | $ | 143,946 | $ | 134,895 | ||||||||||
BXP’s Share of EBITDAre – cash 1, 2 (B) | $ | 355,161 | $ | 361,047 | ||||||||||
Fixed Charge Coverage Ratio (B÷A) | 2.47 | 2.68 | ||||||||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2For a qualitative reconciliation of BXP’s Share of EBITDAre – cash, see page 31.
32
d
| Q3 2020 | ||||
| Consolidated joint ventures | |||||
as of September 30, 2020
(unaudited and dollars in thousands)
BALANCE SHEET INFORMATION
Norges Joint Ventures 1 | |||||||||||||||||||||||
| Times Square Tower | |||||||||||||||||||||||
| 601 Lexington Avenue / One Five Nine East 53rd Street | |||||||||||||||||||||||
| 767 Fifth Avenue | 100 Federal Street | Total Consolidated | |||||||||||||||||||||
| ASSETS | (The GM Building) 1 | Atlantic Wharf Office | Joint Ventures | ||||||||||||||||||||
| Real estate, net | $ | 3,211,250 | $ | 2,289,547 | $ | 5,500,797 | |||||||||||||||||
| Cash and cash equivalents | 79,155 | 188,074 | 267,229 | ||||||||||||||||||||
| Other assets | 308,083 | 342,755 | 650,838 | ||||||||||||||||||||
| Total assets | $ | 3,598,488 | $ | 2,820,376 | $ | 6,418,864 | |||||||||||||||||
| LIABILITIES AND EQUITY | |||||||||||||||||||||||
| Liabilities: | |||||||||||||||||||||||
| Mortgage notes payable, net | $ | 2,276,610 | $ | 633,812 | $ | 2,910,422 | |||||||||||||||||
| Other liabilities | 93,005 | 91,269 | 184,274 | ||||||||||||||||||||
| Total liabilities | 2,369,615 | 725,081 | 3,094,696 | ||||||||||||||||||||
| Equity: | |||||||||||||||||||||||
| Boston Properties, Inc. | 738,863 | 854,520 | 1,593,383 | ||||||||||||||||||||
| Noncontrolling interests | 490,010 | 1,240,775 | 1,730,785 | 2 | |||||||||||||||||||
| Total equity | 1,228,873 | 2,095,295 | 3,324,168 | ||||||||||||||||||||
| Total liabilities and equity | $ | 3,598,488 | $ | 2,820,376 | $ | 6,418,864 | |||||||||||||||||
| BXP’s nominal ownership percentage | 60% | 55% | |||||||||||||||||||||
Partners’ share of cash and cash equivalents 3 | $ | 31,662 | $ | 84,633 | $ | 116,295 | |||||||||||||||||
Partners’ share of consolidated debt 3, 4 | $ | 910,742 | $ | 285,215 | $ | 1,195,957 | |||||||||||||||||
_____________
1Certain balances contain amounts that eliminate in consolidation.
2Amount excludes preferred shareholders’ capital of approximately $0.1 million.
3Amounts represent the partners’ share based on their respective ownership percentages.
4Amounts adjusted for basis differentials.
33
| Q3 2020 | ||||
| Consolidated joint ventures (continued) | |||||
for the three months ended September 30, 2020
(unaudited and dollars in thousands)
RESULTS OF OPERATIONS1
| Norges Joint Ventures | ||||||||||||||||||||
| Times Square Tower | ||||||||||||||||||||
| 601 Lexington Avenue / One Five Nine East 53rd Street | ||||||||||||||||||||
| 767 Fifth Avenue | 100 Federal Street | Total Consolidated | ||||||||||||||||||
| (The GM Building) | Atlantic Wharf Office | Joint Ventures | ||||||||||||||||||
| Revenue | ||||||||||||||||||||
Lease 2 | $ | 60,868 | $ | 86,916 | $ | 147,784 | ||||||||||||||
| Write-offs associated with accounts receivable | — | (267) | (267) | |||||||||||||||||
| Straight-line rent | 14,346 | 5,177 | 19,523 | |||||||||||||||||
| Write-offs associated with straight-line rent | — | (191) | (191) | |||||||||||||||||
| Fair value lease revenue | (2,180) | 109 | (2,071) | |||||||||||||||||
| Termination income | 1,389 | — | 1,389 | |||||||||||||||||
| Total lease revenue | 74,423 | 91,744 | 166,167 | |||||||||||||||||
| Parking and other | — | 919 | 919 | |||||||||||||||||
Total rental revenue 3 | 74,423 | 92,663 | 167,086 | |||||||||||||||||
| Expenses | ||||||||||||||||||||
| Operating | 30,104 | 34,993 | 65,097 | |||||||||||||||||
| Net Operating Income (NOI) | 44,319 | 57,670 | 101,989 | |||||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest and other income | 6 | 99 | 105 | |||||||||||||||||
| Interest expense | (21,394) | (4,899) | (26,293) | |||||||||||||||||
| Depreciation and amortization expense | (15,349) | (20,721) | (36,070) | |||||||||||||||||
| General and administrative expense | (5) | (35) | (40) | |||||||||||||||||
| Total other income (expense) | (36,742) | (25,556) | (62,298) | |||||||||||||||||
| Net income | $ | 7,577 | $ | 32,114 | $ | 39,691 | ||||||||||||||
FUNDS FROM OPERATIONS (FFO)
| BXP’s nominal ownership percentage | 60% | 55% | ||||||||||||||||||
| Norges Joint Ventures | ||||||||||||||||||||
| Times Square Tower | ||||||||||||||||||||
| 601 Lexington Avenue / One Five Nine East 53rd Street | ||||||||||||||||||||
| 767 Fifth Avenue | 100 Federal Street | Total Consolidated | ||||||||||||||||||
| Reconciliation of Partners’ share of FFO | (The GM Building) | Atlantic Wharf Office | Joint Ventures | |||||||||||||||||
| Net income | $ | 7,577 | $ | 32,114 | $ | 39,691 | ||||||||||||||
| Add: Depreciation and amortization expense | 15,349 | 20,721 | 36,070 | |||||||||||||||||
| Entity FFO | $ | 22,926 | $ | 52,835 | $ | 75,761 | ||||||||||||||
Partners’ NCI 4 | $ | 2,104 | $ | 13,457 | $ | 15,561 | ||||||||||||||
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 | 6,397 | 9,436 | 15,833 | |||||||||||||||||
Partners’ share FFO 4 | $ | 8,501 | $ | 22,893 | $ | 31,394 | ||||||||||||||
| Reconciliation of BXP’s share of FFO | ||||||||||||||||||||
BXP’s share of net income adjusted for partners’ NCI | $ | 5,473 | $ | 18,657 | $ | 24,130 | ||||||||||||||
Depreciation and amortization expense - BXP’s basis difference | 46 | 408 | 454 | |||||||||||||||||
BXP’s share of depreciation and amortization expense | 8,906 | 10,877 | 19,783 | |||||||||||||||||
| BXP’s share of FFO | $ | 14,425 | $ | 29,942 | $ | 44,367 | ||||||||||||||
_____________
1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional, detail, see page 59.
2Lease revenue includes recoveries from tenants and service income from tenants.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
4Amounts 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 depreciation and amortization related to capitalized fees.
34
| Q3 2020 | ||||
Unconsolidated joint ventures 1 | |||||
as of September 30, 2020
(unaudited and dollars in thousands)
BALANCE SHEET INFORMATION
| BXP’s Nominal Ownership | Mortgage/Construction Loans Payable, Net | Interest Rate | ||||||||||||||||||||||||||||||||||||
| Property | Net Equity | Maturity Date | Stated | GAAP 2 | ||||||||||||||||||||||||||||||||||
540 Madison Avenue 3 | 60.00 | % | $ | 105 | $ | — | — | — | % | — | % | |||||||||||||||||||||||||||
| Santa Monica Business Park | 55.00 | % | 147,015 | 163,611 | July 19, 2025 | 4.06 | % | 4.24 | % | |||||||||||||||||||||||||||||
| Platform 16 | 55.00 | % | 104,422 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| Gateway Commons | 50.00 | % | 339,383 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| Colorado Center | 50.00 | % | 232,065 | 274,648 | August 9, 2027 | 3.56 | % | 3.58 | % | |||||||||||||||||||||||||||||
Dock 72 4 | 50.00 | % | 99,080 | 97,784 | December 18, 2020 | 2.41 | % | 3.55 | % | |||||||||||||||||||||||||||||
| The Hub on Causeway | 50.00 | % | — | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| Podium | 50.00 | % | 49,092 | 86,692 | September 6, 2021 | 2.41 | % | 2.90 | % | |||||||||||||||||||||||||||||
| Hub50House | 50.00 | % | 52,055 | 84,113 | April 19, 2022 | 2.17 | % | 2.45 | % | |||||||||||||||||||||||||||||
| 100 Causeway Street | 50.00 | % | 56,572 | 89,038 | September 5, 2023 | 1.66 | % | 1.87 | % | |||||||||||||||||||||||||||||
| Hotel Air Rights | 50.00 | % | 10,469 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| 1001 6th Street | 50.00 | % | 42,640 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
7750 Wisconsin Avenue (Marriott International Headquarters) | 50.00 | % | 57,720 | 64,563 | April 26, 2023 | 1.41 | % | 1.95 | % | |||||||||||||||||||||||||||||
| Beach Cities Media Center | 50.00 | % | 27,180 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| Annapolis Junction | 50.00 | % | 13,238 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| Annapolis Junction Building Six | 50.00 | % | — | 6,064 | November 17, 2020 | 2.15 | % | 2.30 | % | |||||||||||||||||||||||||||||
Annapolis Junction Building Seven | 50.00 | % | — | 9,195 | March 25, 2021 | 2.58 | % | 2.92 | % | |||||||||||||||||||||||||||||
| 1265 Main Street | 50.00 | % | 4,027 | 18,615 | January 1, 2032 | 3.77 | % | 3.84 | % | |||||||||||||||||||||||||||||
| Market Square North | 50.00 | % | (3,864) | 57,068 | November 1, 2020 | 4.85 | % | 4.85 | % | |||||||||||||||||||||||||||||
| Wisconsin Place Parking Facility | 33.33 | % | 35,682 | — | — | — | % | — | % | |||||||||||||||||||||||||||||
| 500 North Capitol Street, N.W. | 30.00 | % | (6,239) | 31,453 | June 6, 2023 | 4.15 | % | 4.20 | % | |||||||||||||||||||||||||||||
3 Hudson Boulevard 5 | 25.00 | % | 106,546 | 19,956 | July 13, 2023 | 3.66 | % | 3.74 | % | |||||||||||||||||||||||||||||
| 901 New York Avenue | 25.00 | % | (12,187) | 55,358 | January 5, 2025 | 3.61 | % | 3.69 | % | |||||||||||||||||||||||||||||
| Metropolitan Square | 20.00 | % | (7,166) | 55,873 | July 7, 2022 | 5.40 | % | 6.90 | % | |||||||||||||||||||||||||||||
| 1,347,835 | ||||||||||||||||||||||||||||||||||||||
Investments with deficit balances reflected within Other Liabilities | 29,456 | |||||||||||||||||||||||||||||||||||||
| Investment in Joint Ventures | $ | 1,377,291 | ||||||||||||||||||||||||||||||||||||
| Mortgage/Construction Loans Payable, Net | $ | 1,114,031 | ||||||||||||||||||||||||||||||||||||
FLOATING AND FIXED RATE DEBT ANALYSIS
| Weighted Average | ||||||||||||||||||||||||||
| % of Total Debt | Stated Rate | GAAP Rate 2 | Maturity (years) | |||||||||||||||||||||||
| Floating Rate Debt | 46.07 | % | 2.49 | % | 3.11 | % | 1.6 | |||||||||||||||||||
| Fixed Rate Debt | 53.93 | % | 3.86 | % | 3.93 | % | 5.3 | |||||||||||||||||||
| Total Debt | 100.00 | % | 3.23 | % | 3.55 | % | 3.6 | |||||||||||||||||||
35
| Q3 2020 | ||||
Unconsolidated joint ventures (continued) 1 | |||||
_____________
1Amounts represent BXP’s share based on its ownership percentage.
2The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees.
3The property was sold on June 27, 2019.
4 The property includes net equity balances from the amenity joint venture.
5 The Company has provided $80.0 million of mortgage financing to the joint venture. The loan has been reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.
36
| Q3 2020 | ||||
| Unconsolidated joint ventures (continued) | |||||
for the three months ended September 30, 2020
(unaudited and dollars in thousands)
RESULTS OF OPERATIONS 1
| Market Square North | Metropolitan Square | 901 New York Avenue | Annapolis Junction | 500 North Capitol Street, N.W. | Colorado Center | Santa Monica Business Park | The Hub on Causeway | Gateway Commons | Other Joint Ventures 2 | Total Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease 3 | $ | 5,211 | $ | 4,939 | $ | 5,828 | $ | 1,912 | $ | 4,362 | $ | 20,189 | $ | 16,269 | $ | 7,267 | $ | 12,685 | $ | 1,663 | $ | 80,325 | ||||||||||||||||||||||||||||||||||||||||||||||
| Write-offs associated with accounts receivable | — | — | — | — | — | (1,075) | — | — | — | — | (1,075) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Straight-line rent | 171 | 2,005 | 587 | 38 | (82) | (199) | 226 | 1,526 | 254 | 3,079 | 7,605 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-offs associated with straight-line rent | — | — | — | — | — | (3,837) | — | — | — | — | (3,837) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value lease revenue | 9 | 1,069 | — | 52 | — | 1,130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Termination income | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total lease revenue | 5,382 | 6,944 | 6,415 | 1,950 | 4,280 | 15,087 | 17,564 | 8,793 | 12,991 | 4,742 | 84,148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Parking and other | 209 | 206 | 218 | — | 18 | 1,166 | 1,345 | (92) | 5 | 380 | 3,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental revenue 4 | 5,591 | 7,150 | 6,633 | 1,950 | 4,298 | 16,253 | 18,909 | 8,701 | 12,996 | 5,122 | 87,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating | 2,369 | 3,141 | 2,994 | 645 | 1,680 | 6,174 | 7,834 | 4,170 | 4,911 | 3,413 | 37,331 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income | 3,222 | 4,009 | 3,639 | 1,305 | 2,618 | 10,079 | 11,075 | 4,531 | 8,085 | 1,709 | 50,272 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income/(expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Development and management services revenue | 15 | 88 | — | — | — | — | — | — | 11 | — | 114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and other income | 1 | — | — | — | — | 1 | — | 1 | — | 4 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (1,409) | (5,183) | (2,054) | (209) | (1,128) | (5,033) | (6,999) | (2,381) | — | (1,085) | (25,481) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (1,217) | (3,195) | (1,588) | (546) | (862) | (5,366) | (8,884) | (4,276) | (7,104) | (2,772) | (35,810) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expense | — | (34) | (9) | — | (1) | (11) | (99) | (20) | (67) | — | (241) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of real estate | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income/(expense) | (2,610) | (8,324) | (3,651) | (755) | (1,991) | (10,409) | (15,982) | (6,676) | (7,160) | (3,853) | (61,411) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income/(loss) | $ | 612 | $ | (4,315) | $ | (12) | $ | 550 | $ | 627 | $ | (330) | $ | (4,907) | $ | (2,145) | $ | 925 | $ | (2,144) | $ | (11,139) | ||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s economic ownership percentage | 50 | % | 20 | % | 50 | % | 50 | % | 30 | % | 50 | % | 55 | % | 50 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of BXP’s share of Funds from Operations (FFO) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of net income/(loss) | $ | 306 | $ | (863) | $ | (3) | 5 | $ | 275 | $ | 188 | $ | (165) | $ | (2,699) | $ | (1,073) | $ | 509 | $ | (896) | $ | (4,421) | |||||||||||||||||||||||||||||||||||||||||||||
| Basis differential | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Straight-line rent | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 416 | 6 | $ | — | $ | — | $ | 8 | $ | — | $ | 424 | |||||||||||||||||||||||||||||||||||||||||||||
| Fair value lease revenue | — | — | — | — | — | 437 | 6 | — | — | (241) | — | 196 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (47) | (9) | (26) | (4) | 3 | (1,901) | 7 | (33) | (1,043) | (19) | (3,072) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of real estate | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total basis differential 7 | (47) | (9) | (26) | (4) | 3 | (1,048) | 6 | 7 | (33) | (1,276) | (19) | (2,452) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Income/(loss) from unconsolidated joint ventures | 259 | (872) | (29) | 5 | 271 | 191 | (1,213) | (2,692) | (1,106) | (767) | (915) | (6,873) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of depreciation and amortization expense | 655 | 648 | 817 | 5 | 277 | 256 | 4,584 | 4,879 | 2,171 | 4,950 | 1,176 | 20,413 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of gain on sale of real estate | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of FFO | $ | 914 | $ | (224) | $ | 788 | $ | 548 | $ | 447 | $ | 3,371 | $ | 2,187 | $ | 1,065 | $ | 4,183 | $ | 261 | $ | 13,540 | ||||||||||||||||||||||||||||||||||||||||||||||
37
| Q3 2020 | ||||
| Unconsolidated joint ventures (continued) | |||||
_____________
1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 59.
2 Includes 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility, 3 Hudson Boulevard, 540 Madison Avenue, Platform 16, and Beach Cities Media Center.
3 Lease revenue includes recoveries from tenants and service income from tenants.
4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
5 Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.
6 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.
7 Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.
38
| Q3 2020 | ||||
Lease expirations - All in-service properties1, 2, 3, 5 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||||||||
| Year of Lease Expiration | Percentage of Total Square Feet | ||||||||||||||||||||||||||||||||||||||||||||||
| $ | $/PSF | $ | $/PSF | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 1,206,999 | 877,529 | 46,643,197 | 53.15 | 46,659,751 | 53.17 | 2.38 | % | 4, 5 | ||||||||||||||||||||||||||||||||||||||
| 2021 | 2,823,709 | 2,478,449 | 139,399,519 | 56.24 | 140,381,356 | 56.64 | 6.72 | % | |||||||||||||||||||||||||||||||||||||||
| 2022 | 2,584,131 | 2,221,621 | 141,315,026 | 63.61 | 139,712,343 | 62.89 | 6.03 | % | |||||||||||||||||||||||||||||||||||||||
| 2023 | 2,087,472 | 1,799,459 | 129,297,222 | 71.85 | 138,866,415 | 77.17 | 4.88 | % | |||||||||||||||||||||||||||||||||||||||
| 2024 | 3,476,665 | 3,133,599 | 197,025,977 | 62.88 | 203,600,766 | 64.97 | 8.50 | % | |||||||||||||||||||||||||||||||||||||||
| 2025 | 2,686,538 | 2,424,731 | 154,597,145 | 63.76 | 165,128,569 | 68.10 | 6.58 | % | |||||||||||||||||||||||||||||||||||||||
| 2026 | 3,441,195 | 2,658,193 | 197,311,067 | 74.23 | 217,035,970 | 81.65 | 7.21 | % | |||||||||||||||||||||||||||||||||||||||
| 2027 | 2,069,535 | 1,830,642 | 121,525,043 | 66.38 | 134,947,004 | 73.72 | 4.97 | % | |||||||||||||||||||||||||||||||||||||||
| 2028 | 2,320,597 | 2,102,600 | 150,494,413 | 71.58 | 170,142,005 | 80.92 | 5.70 | % | |||||||||||||||||||||||||||||||||||||||
| 2029 | 2,225,400 | 2,078,083 | 143,556,548 | 69.08 | 165,549,790 | 79.66 | 5.64 | % | |||||||||||||||||||||||||||||||||||||||
| Thereafter | 13,524,379 | 11,468,330 | 891,392,341 | 77.73 | 1,096,879,935 | 95.64 | 31.11 | % | |||||||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||||||||
| Year of Lease Expiration | Percentage of Total Square Feet | ||||||||||||||||||||||||||||||||||||||||||||||
| $ | $/PSF | $ | $/PSF | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 398,019 | 354,758 | 16,110,742 | 45.41 | 16,390,218 | 46.20 | 16.76 | % | 5 | ||||||||||||||||||||||||||||||||||||||
| 2021 | 67,033 | 63,243 | 4,894,486 | 77.39 | 4,930,414 | 77.96 | 2.99 | % | |||||||||||||||||||||||||||||||||||||||
| 2022 | 204,493 | 174,209 | 12,815,424 | 73.56 | 13,271,382 | 76.18 | 8.23 | % | |||||||||||||||||||||||||||||||||||||||
| 2023 | 178,384 | 174,561 | 11,408,587 | 65.36 | 12,079,804 | 69.20 | 8.25 | % | |||||||||||||||||||||||||||||||||||||||
| 2024 | 134,027 | 127,539 | 13,371,790 | 104.84 | 14,710,606 | 115.34 | 6.03 | % | |||||||||||||||||||||||||||||||||||||||
| 2025 | 180,120 | 167,909 | 9,981,648 | 59.45 | 11,046,750 | 65.79 | 7.93 | % | |||||||||||||||||||||||||||||||||||||||
| 2026 | 105,006 | 96,194 | 18,973,465 | 197.24 | 17,700,196 | 184.01 | 4.55 | % | |||||||||||||||||||||||||||||||||||||||
| 2027 | 94,659 | 89,392 | 12,300,260 | 137.60 | 13,694,328 | 153.19 | 4.22 | % | |||||||||||||||||||||||||||||||||||||||
| 2028 | 140,750 | 126,566 | 9,702,317 | 76.66 | 10,732,387 | 84.80 | 5.98 | % | |||||||||||||||||||||||||||||||||||||||
| 2029 | 110,373 | 88,111 | 8,732,806 | 99.11 | 10,148,917 | 115.18 | 4.16 | % | |||||||||||||||||||||||||||||||||||||||
| Thereafter | 594,047 | 451,537 | 61,412,856 | 136.01 | 77,442,679 | 171.51 | 21.34 | % | |||||||||||||||||||||||||||||||||||||||
IN-SERVICE PROPERTIES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||||||||
| Year of Lease Expiration | Percentage of Total Square Feet | ||||||||||||||||||||||||||||||||||||||||||||||
| $ | $/PSF | $ | $/PSF | ||||||||||||||||||||||||||||||||||||||||||||
| 2020 | 1,605,018 | 1,232,287 | 62,753,939 | 50.92 | 63,049,969 | 51.17 | 3.16 | % | 4, 5 | ||||||||||||||||||||||||||||||||||||||
| 2021 | 2,890,742 | 2,541,692 | 144,294,005 | 56.77 | 145,311,770 | 57.17 | 6.52 | % | |||||||||||||||||||||||||||||||||||||||
| 2022 | 2,788,624 | 2,395,830 | 154,130,450 | 64.33 | 152,983,725 | 63.85 | 6.15 | % | |||||||||||||||||||||||||||||||||||||||
| 2023 | 2,265,856 | 1,974,020 | 140,705,809 | 71.28 | 150,946,219 | 76.47 | 5.06 | % | |||||||||||||||||||||||||||||||||||||||
| 2024 | 3,610,692 | 3,261,138 | 210,397,767 | 64.52 | 218,311,372 | 66.94 | 8.37 | % | |||||||||||||||||||||||||||||||||||||||
| 2025 | 2,866,658 | 2,592,640 | 164,578,793 | 63.48 | 176,175,319 | 67.95 | 6.65 | % | |||||||||||||||||||||||||||||||||||||||
| 2026 | 3,546,201 | 2,754,387 | 216,284,532 | 78.52 | 234,736,166 | 85.22 | 7.07 | % | |||||||||||||||||||||||||||||||||||||||
| 2027 | 2,164,194 | 1,920,034 | 133,825,303 | 69.70 | 148,641,332 | 77.42 | 4.93 | % | |||||||||||||||||||||||||||||||||||||||
| 2028 | 2,461,347 | 2,229,166 | 160,196,730 | 71.86 | 180,874,392 | 81.14 | 5.72 | % | |||||||||||||||||||||||||||||||||||||||
| 2029 | 2,335,773 | 2,166,194 | 152,289,354 | 70.30 | 175,698,707 | 81.11 | 5.56 | % | |||||||||||||||||||||||||||||||||||||||
| Thereafter | 14,118,426 | 11,919,867 | 952,805,197 | 79.93 | 1,174,322,614 | 98.52 | 30.58 | % | |||||||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units and hotel.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020, the Company terminated leases for an aggregate of (A) 344,245 square feet of office space, of which BXP’s Share is 190,649 SF, and (B) 332,585 SF of retail space, of which BXP’s Share is 290,739 SF. BXP’s Share of current and future annualized rental obligations is (A) $12,220,460 for office space and (B) $11,986,210 for retail space for which the Company is not currently recognizing revenue.
39
| Q3 2020 | ||||
Lease expirations - Boston region in-service properties 1, 2, 3, 5 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 205,597 | 198,106 | 11,042,675 | 55.74 | 11,042,675 | 55.74 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 814,522 | 793,305 | 36,342,992 | 45.81 | 36,486,105 | 45.99 | |||||||||||||||||||||||||||||||||||
| 2022 | 888,821 | 827,116 | 42,647,502 | 51.56 | 39,181,593 | 47.37 | |||||||||||||||||||||||||||||||||||
| 2023 | 697,192 | 637,791 | 37,631,101 | 59.00 | 39,683,924 | 62.22 | |||||||||||||||||||||||||||||||||||
| 2024 | 853,222 | 824,019 | 44,560,139 | 54.08 | 46,485,923 | 56.41 | |||||||||||||||||||||||||||||||||||
| 2025 | 1,079,226 | 1,062,711 | 60,824,527 | 57.24 | 63,736,035 | 59.97 | |||||||||||||||||||||||||||||||||||
| 2026 | 1,281,168 | 1,042,109 | 69,832,484 | 67.01 | 78,255,051 | 75.09 | |||||||||||||||||||||||||||||||||||
| 2027 | 662,035 | 662,035 | 37,265,392 | 56.29 | 41,599,788 | 62.84 | |||||||||||||||||||||||||||||||||||
| 2028 | 1,079,209 | 1,079,209 | 67,083,320 | 62.16 | 72,457,053 | 67.14 | |||||||||||||||||||||||||||||||||||
| 2029 | 681,361 | 604,026 | 30,119,980 | 49.87 | 35,062,215 | 58.05 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,691,022 | 4,169,077 | 282,579,628 | 67.78 | 349,289,961 | 83.78 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 353,767 | 321,829 | 10,685,343 | 33.20 | 10,560,805 | 32.82 | 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 4,506 | 4,504 | 762,711 | 169.33 | 766,319 | 170.13 | |||||||||||||||||||||||||||||||||||
| 2022 | 52,526 | 45,897 | 3,486,026 | 75.95 | 3,580,327 | 78.01 | |||||||||||||||||||||||||||||||||||
| 2023 | 55,252 | 55,252 | 4,949,029 | 89.57 | 5,034,237 | 91.11 | |||||||||||||||||||||||||||||||||||
| 2024 | 80,177 | 80,177 | 5,808,491 | 72.45 | 5,844,441 | 72.89 | |||||||||||||||||||||||||||||||||||
| 2025 | 47,432 | 47,432 | 4,245,390 | 89.50 | 4,568,683 | 96.32 | |||||||||||||||||||||||||||||||||||
| 2026 | 21,841 | 20,976 | 4,598,507 | 219.23 | 5,060,537 | 241.26 | |||||||||||||||||||||||||||||||||||
| 2027 | 54,619 | 54,619 | 9,989,416 | 182.89 | 10,983,379 | 201.09 | |||||||||||||||||||||||||||||||||||
| 2028 | 48,918 | 48,918 | 7,188,389 | 146.95 | 7,961,892 | 162.76 | |||||||||||||||||||||||||||||||||||
| 2029 | 77,491 | 60,301 | 6,786,733 | 112.55 | 7,626,623 | 126.48 | |||||||||||||||||||||||||||||||||||
| Thereafter | 201,449 | 142,784 | 10,642,166 | 74.53 | 12,440,953 | 87.13 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 559,364 | 519,935 | 21,728,018 | 41.79 | 21,603,480 | 41.55 | 4, 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 819,028 | 797,809 | 37,105,703 | 46.51 | 37,252,424 | 46.69 | |||||||||||||||||||||||||||||||||||
| 2022 | 941,347 | 873,013 | 46,133,528 | 52.84 | 42,761,920 | 48.98 | |||||||||||||||||||||||||||||||||||
| 2023 | 752,444 | 693,043 | 42,580,130 | 61.44 | 44,718,161 | 64.52 | |||||||||||||||||||||||||||||||||||
| 2024 | 933,399 | 904,196 | 50,368,630 | 55.71 | 52,330,364 | 57.88 | |||||||||||||||||||||||||||||||||||
| 2025 | 1,126,658 | 1,110,143 | 65,069,917 | 58.61 | 68,304,718 | 61.53 | |||||||||||||||||||||||||||||||||||
| 2026 | 1,303,009 | 1,063,085 | 74,430,991 | 70.01 | 83,315,588 | 78.37 | |||||||||||||||||||||||||||||||||||
| 2027 | 716,654 | 716,654 | 47,254,808 | 65.94 | 52,583,167 | 73.37 | |||||||||||||||||||||||||||||||||||
| 2028 | 1,128,127 | 1,128,127 | 74,271,709 | 65.84 | 80,418,945 | 71.29 | |||||||||||||||||||||||||||||||||||
| 2029 | 758,852 | 664,327 | 36,906,713 | 55.56 | 42,688,838 | 64.26 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,892,471 | 4,311,861 | 293,221,794 | 68.00 | 361,730,914 | 83.89 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units and hotel.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020, the Company terminated leases for an aggregate of 310,363 SF, of which BXP’s Share is 278,425 SF. BXP’s Share of current and future annualized rental obligations is $8,064,337 for which the Company is not currently recognizing revenue.
40
| Q3 2020 | ||||
Quarterly lease expirations - Boston region in-service properties 1, 2, 3, 5 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 17,549 | 10,058 | 937,800 | 93.24 | 937,800 | 93.24 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 188,048 | 188,048 | 10,104,875 | 53.74 | 10,104,875 | 53.74 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 205,597 | 198,106 | 11,042,675 | 55.74 | 11,042,675 | 55.74 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 224,140 | 219,810 | 9,048,104 | 41.16 | 9,048,104 | 41.16 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 319,241 | 319,241 | 14,145,317 | 44.31 | 14,145,317 | 44.31 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 110,739 | 110,739 | 4,985,600 | 45.02 | 4,995,638 | 45.11 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 160,402 | 143,515 | 8,163,971 | 56.89 | 8,297,046 | 57.81 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 814,522 | 793,305 | 36,342,992 | 45.81 | 36,486,105 | 45.99 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 353,767 | 321,829 | 10,685,343 | 33.20 | 10,560,805 | 32.82 | 5 | ||||||||||||||||||||||||||||||||||
| Total 2020 | 353,767 | 321,829 | 10,685,343 | 33.20 | 10,560,805 | 32.82 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 1,725 | 1,725 | 239,557 | 138.87 | 239,557 | 138.87 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 1,540 | 1,540 | 366,168 | 237.77 | 367,620 | 238.71 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 1,241 | 1,239 | 156,986 | 126.68 | 159,142 | 128.42 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 4,506 | 4,504 | 762,711 | 169.33 | 766,319 | 170.13 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 17,549 | 10,058 | 937,800 | 93.24 | 937,800 | 93.24 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 541,815 | 509,877 | 20,790,218 | 40.77 | 20,665,680 | 40.53 | 5 | ||||||||||||||||||||||||||||||||||
| Total 2020 | 559,364 | 519,935 | 21,728,018 | 41.79 | 21,603,480 | 41.55 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 224,140 | 219,810 | 9,048,104 | 41.16 | 9,048,104 | 41.16 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 320,966 | 320,966 | 14,384,874 | 44.82 | 14,384,874 | 44.82 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 112,279 | 112,279 | 5,351,768 | 47.66 | 5,363,258 | 47.77 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 161,643 | 144,754 | 8,320,957 | 57.48 | 8,456,188 | 58.42 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 819,028 | 797,809 | 37,105,703 | 46.51 | 37,252,424 | 46.69 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units and hotel.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020, the Company terminated leases for an aggregate of 310,363 SF, of which BXP’s Share is 278,425 SF. BXP’s Share of current and future annualized rental obligations is $8,064,337 for which the Company is not currently recognizing revenue.
41
| Q3 2020 | ||||
Lease expirations - Los Angeles region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| 2021 | 445,260 | 223,744 | 17,179,801 | 76.78 | 17,523,538 | 78.32 | |||||||||||||||||||||||||||||||||||
| 2022 | 66,798 | 34,856 | 2,281,609 | 65.46 | 2,439,626 | 69.99 | |||||||||||||||||||||||||||||||||||
| 2023 | 163,555 | 86,354 | 5,558,283 | 64.37 | 6,121,355 | 70.89 | |||||||||||||||||||||||||||||||||||
| 2024 | 128,688 | 70,778 | 4,406,891 | 62.26 | 5,053,724 | 71.40 | |||||||||||||||||||||||||||||||||||
| 2025 | 6,475 | 3,561 | 243,590 | 68.40 | 289,308 | 81.24 | |||||||||||||||||||||||||||||||||||
| 2026 | 451,148 | 248,131 | 16,146,603 | 65.07 | 19,027,577 | 76.68 | |||||||||||||||||||||||||||||||||||
| 2027 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2028 | 280,704 | 144,608 | 10,086,546 | 69.75 | 13,485,320 | 93.25 | |||||||||||||||||||||||||||||||||||
| 2029 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Thereafter | 346,204 | 173,102 | 11,533,167 | 66.63 | 19,274,112 | 111.35 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2021 | 7,576 | 3,788 | 112,965 | 29.82 | 116,354 | 30.72 | |||||||||||||||||||||||||||||||||||
| 2022 | 39,888 | 21,850 | 1,231,831 | 56.38 | 1,279,627 | 58.56 | |||||||||||||||||||||||||||||||||||
| 2023 | 1,405 | 703 | 46,269 | 65.86 | 48,314 | 68.77 | |||||||||||||||||||||||||||||||||||
| 2024 | 4,333 | 2,283 | 116,040 | 50.82 | 134,265 | 58.81 | |||||||||||||||||||||||||||||||||||
| 2025 | 15,448 | 8,496 | 491,930 | 57.90 | 575,945 | 67.79 | |||||||||||||||||||||||||||||||||||
| 2026 | 5,827 | 3,205 | 295,269 | 92.13 | 339,285 | 105.87 | |||||||||||||||||||||||||||||||||||
| 2027 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2028 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2029 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Thereafter | 23,276 | 11,902 | 783,667 | 65.84 | 1,006,379 | 84.55 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| 2021 | 452,836 | 227,532 | 17,292,766 | 76.00 | 17,639,892 | 77.53 | |||||||||||||||||||||||||||||||||||
| 2022 | 106,686 | 56,706 | 3,513,440 | 61.96 | 3,719,253 | 65.59 | |||||||||||||||||||||||||||||||||||
| 2023 | 164,960 | 87,057 | 5,604,552 | 64.38 | 6,169,669 | 70.87 | |||||||||||||||||||||||||||||||||||
| 2024 | 133,021 | 73,061 | 4,522,931 | 61.91 | 5,187,989 | 71.01 | |||||||||||||||||||||||||||||||||||
| 2025 | 21,923 | 12,057 | 735,520 | 61.00 | 865,253 | 71.76 | |||||||||||||||||||||||||||||||||||
| 2026 | 456,975 | 251,336 | 16,441,872 | 65.42 | 19,366,862 | 77.06 | |||||||||||||||||||||||||||||||||||
| 2027 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2028 | 280,704 | 144,608 | 10,086,546 | 69.75 | 13,485,320 | 93.25 | |||||||||||||||||||||||||||||||||||
| 2029 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Thereafter | 369,480 | 185,004 | 12,316,834 | 66.58 | 20,280,491 | 109.62 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.
3Does 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.
42
| Q3 2020 | ||||
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 168,072 | 84,382 | 7,342,952 | 87.02 | 7,350,555 | 87.11 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 4,964 | 2,730 | 112,306 | 41.13 | 115,983 | 42.48 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 5,581 | 3,070 | 194,281 | 63.29 | 200,818 | 65.42 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 266,643 | 133,563 | 9,530,262 | 71.35 | 9,856,183 | 73.79 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 445,260 | 223,744 | 17,179,801 | 76.78 | 17,523,538 | 78.32 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Total 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q1 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 7,576 | 3,788 | 112,965 | 29.82 | 116,354 | 30.72 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Total 2021 | 7,576 | 3,788 | 112,965 | 29.82 | 116,354 | 30.72 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 168,072 | 84,382 | 7,342,952 | 87.02 | 7,350,555 | 87.11 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 4,964 | 2,730 | 112,306 | 41.14 | 115,983 | 42.48 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 13,157 | 6,858 | 307,246 | 44.80 | 317,172 | 46.25 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 266,643 | 133,563 | 9,530,262 | 71.35 | 9,856,183 | 73.79 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 452,836 | 227,532 | 17,292,766 | 76.00 | 17,639,892 | 77.53 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.
3Does 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.
43
| Q3 2020 | ||||
Lease expirations - New York region in-service properties 1, 2, 3, 5 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 387,994 | 230,425 | 15,095,499 | 65.51 | 15,095,499 | 65.51 | 4, 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 359,291 | 295,172 | 26,057,790 | 88.28 | 26,010,487 | 88.12 | |||||||||||||||||||||||||||||||||||
| 2022 | 614,808 | 513,755 | 43,578,343 | 84.82 | 43,707,777 | 85.08 | |||||||||||||||||||||||||||||||||||
| 2023 | 400,955 | 315,538 | 32,816,769 | 104.00 | 36,384,770 | 115.31 | |||||||||||||||||||||||||||||||||||
| 2024 | 1,135,835 | 959,206 | 67,303,763 | 70.17 | 67,194,221 | 70.05 | |||||||||||||||||||||||||||||||||||
| 2025 | 605,304 | 541,408 | 43,750,266 | 80.81 | 46,087,998 | 85.13 | |||||||||||||||||||||||||||||||||||
| 2026 | 700,647 | 507,120 | 43,524,947 | 85.83 | 45,246,099 | 89.22 | |||||||||||||||||||||||||||||||||||
| 2027 | 474,687 | 391,134 | 27,748,806 | 70.94 | 29,854,133 | 76.33 | |||||||||||||||||||||||||||||||||||
| 2028 | 271,207 | 249,161 | 22,491,157 | 90.27 | 24,268,476 | 97.40 | |||||||||||||||||||||||||||||||||||
| 2029 | 630,080 | 603,713 | 62,048,306 | 102.78 | 67,382,780 | 111.61 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,088,477 | 3,168,506 | 292,832,131 | 92.42 | 354,305,746 | 111.82 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 22,222 | 12,314 | 3,921,873 | 318.48 | 3,921,873 | 318.48 | 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 715 | 715 | 141,517 | 197.93 | 141,517 | 197.93 | |||||||||||||||||||||||||||||||||||
| 2022 | 27,093 | 27,022 | 4,086,369 | 151.22 | 4,086,369 | 151.22 | |||||||||||||||||||||||||||||||||||
| 2023 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2024 | 8,327 | 5,706 | 5,330,177 | 934.10 | 5,992,514 | 1,050.18 | |||||||||||||||||||||||||||||||||||
| 2025 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2026 | 23,438 | 19,320 | 11,049,307 | 571.90 | 8,504,118 | 440.17 | |||||||||||||||||||||||||||||||||||
| 2027 | 243 | 146 | 21,600 | 148.15 | 21,600 | 148.15 | |||||||||||||||||||||||||||||||||||
| 2028 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2029 | 3,135 | 3,135 | 678,475 | 216.42 | 826,001 | 263.48 | |||||||||||||||||||||||||||||||||||
| Thereafter | 239,614 | 176,049 | 42,540,254 | 241.64 | 55,606,595 | 315.86 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 410,216 | 242,739 | 19,017,372 | 78.34 | 19,017,372 | 78.34 | 4, 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 360,006 | 295,887 | 26,199,307 | 88.54 | 26,152,004 | 88.39 | |||||||||||||||||||||||||||||||||||
| 2022 | 641,901 | 540,777 | 47,664,712 | 88.14 | 47,794,146 | 88.38 | |||||||||||||||||||||||||||||||||||
| 2023 | 400,955 | 315,538 | 32,816,769 | 104.00 | 36,384,770 | 115.31 | |||||||||||||||||||||||||||||||||||
| 2024 | 1,144,162 | 964,912 | 72,633,940 | 75.28 | 73,186,735 | 75.85 | |||||||||||||||||||||||||||||||||||
| 2025 | 605,304 | 541,408 | 43,750,266 | 80.81 | 46,087,998 | 85.13 | |||||||||||||||||||||||||||||||||||
| 2026 | 724,085 | 526,440 | 54,574,254 | 103.67 | 53,750,217 | 102.10 | |||||||||||||||||||||||||||||||||||
| 2027 | 474,930 | 391,280 | 27,770,406 | 70.97 | 29,875,733 | 76.35 | |||||||||||||||||||||||||||||||||||
| 2028 | 271,207 | 249,161 | 22,491,157 | 90.27 | 24,268,476 | 97.40 | |||||||||||||||||||||||||||||||||||
| 2029 | 633,215 | 606,848 | 62,726,781 | 103.36 | 68,208,781 | 112.40 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,328,091 | 3,344,555 | 335,372,385 | 100.27 | 409,912,341 | 122.56 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020 the Company terminated leases for an aggregate of (A) 344,245 square feet of office space, of which BXP’s Share is 190,649 SF, and (B) 22,222 SF of retail space, of which BXP’s Share is 12,314 SF. BXP’s Share of current and future annualized rental obligations (A) $12,220,460 for office space and (B) $3,921,873 for retail space for which the Company is not currently recognizing revenue.
44
| Q3 2020 | ||||
Quarterly lease expirations - New York region in-service properties 1, 2, 3, 5 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 11,593 | 11,593 | 1,131,239 | 97.58 | 1,131,239 | 97.58 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 376,401 | 218,832 | 13,964,260 | 63.81 | 13,964,260 | 63.81 | 5 | ||||||||||||||||||||||||||||||||||
| Total 2020 | 387,994 | 230,425 | 15,095,499 | 65.51 | 15,095,499 | 65.51 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 49,139 | 42,178 | 2,245,492 | 53.24 | 2,245,492 | 53.24 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 67,441 | 50,524 | 3,665,676 | 72.55 | 3,665,676 | 72.55 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 181,142 | 140,901 | 14,502,056 | 102.92 | 14,448,133 | 102.54 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 61,569 | 61,569 | 5,644,566 | 91.68 | 5,651,187 | 91.79 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 359,291 | 295,172 | 26,057,790 | 88.28 | 26,010,487 | 88.12 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 22,222 | 12,314 | 3,921,873 | 318.48 | 3,921,873 | 318.48 | 5 | ||||||||||||||||||||||||||||||||||
| Total 2020 | 22,222 | 12,314 | 3,921,873 | 318.48 | 3,921,873 | 318.48 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 715 | 715 | 141,517 | 197.93 | 141,517 | 197.93 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2021 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Total 2021 | 715 | 715 | 141,517 | 197.93 | 141,517 | 197.93 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 11,593 | 11,593 | 1,131,239 | 97.58 | 1,131,239 | 97.58 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 398,623 | 231,146 | 17,886,133 | 77.38 | 17,886,133 | 77.38 | 5 | ||||||||||||||||||||||||||||||||||
| Total 2020 | 410,216 | 242,739 | 19,017,372 | 78.34 | 19,017,372 | 78.34 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 49,854 | 42,893 | 2,387,009 | 55.65 | 2,387,009 | 55.65 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 67,441 | 50,524 | 3,665,676 | 72.55 | 3,665,676 | 72.55 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 181,142 | 140,901 | 14,502,056 | 102.92 | 14,448,133 | 102.54 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 61,569 | 61,569 | 5,644,566 | 91.68 | 5,651,187 | 91.79 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 360,006 | 295,887 | 26,199,307 | 88.54 | 26,152,004 | 88.39 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020 the Company terminated leases for an aggregate of (A) 344,245 square feet of office space, of which BXP’s Share is 190,649 SF, and (B) 22,222 SF of retail space, of which BXP’s Share is 12,314 SF. BXP’s Share of current and future annualized rental obligations (A) $12,220,460 for office space and (B) $3,921,873 for retail space for which the Company is not currently recognizing revenue.
45
| Q3 2020 | ||||
Lease expirations - San Francisco region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 159,219 | 109,626 | 6,083,490 | 55.49 | 6,085,131 | 55.51 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 857,259 | 826,989 | 44,318,148 | 53.59 | 44,848,147 | 54.23 | |||||||||||||||||||||||||||||||||||
| 2022 | 698,186 | 574,066 | 39,770,534 | 69.28 | 40,923,358 | 71.29 | |||||||||||||||||||||||||||||||||||
| 2023 | 605,150 | 549,461 | 41,701,323 | 75.90 | 44,378,767 | 80.77 | |||||||||||||||||||||||||||||||||||
| 2024 | 646,344 | 612,594 | 43,173,571 | 70.48 | 44,704,292 | 72.98 | |||||||||||||||||||||||||||||||||||
| 2025 | 457,801 | 449,469 | 35,704,844 | 79.44 | 39,807,663 | 88.57 | |||||||||||||||||||||||||||||||||||
| 2026 | 503,249 | 420,216 | 34,644,099 | 82.44 | 38,080,491 | 90.62 | |||||||||||||||||||||||||||||||||||
| 2027 | 379,957 | 376,634 | 33,402,668 | 88.69 | 38,087,830 | 101.13 | |||||||||||||||||||||||||||||||||||
| 2028 | 499,479 | 487,223 | 41,163,714 | 84.49 | 48,649,931 | 99.85 | |||||||||||||||||||||||||||||||||||
| 2029 | 259,888 | 241,604 | 22,195,831 | 91.87 | 27,364,218 | 113.26 | |||||||||||||||||||||||||||||||||||
| Thereafter | 1,774,113 | 1,757,747 | 164,852,602 | 93.79 | 196,538,303 | 111.81 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 1,216 | 1,216 | 51,356 | 42.23 | 51,356 | 42.23 | |||||||||||||||||||||||||||||||||||
| 2021 | 18,294 | 18,294 | 1,257,634 | 68.75 | 1,272,402 | 69.55 | |||||||||||||||||||||||||||||||||||
| 2022 | 29,010 | 29,010 | 1,476,661 | 50.90 | 1,530,664 | 52.76 | |||||||||||||||||||||||||||||||||||
| 2023 | 47,910 | 47,910 | 2,304,039 | 48.09 | 2,775,066 | 57.92 | |||||||||||||||||||||||||||||||||||
| 2024 | 9,700 | 9,700 | 431,889 | 44.52 | 563,946 | 58.14 | |||||||||||||||||||||||||||||||||||
| 2025 | 32,585 | 32,585 | 2,077,656 | 63.76 | 2,476,644 | 76.01 | |||||||||||||||||||||||||||||||||||
| 2026 | 12,247 | 12,247 | 933,276 | 76.20 | 1,038,378 | 84.79 | |||||||||||||||||||||||||||||||||||
| 2027 | 10,560 | 10,560 | 470,367 | 44.54 | 624,267 | 59.12 | |||||||||||||||||||||||||||||||||||
| 2028 | 14,208 | 14,208 | 906,607 | 63.81 | 1,004,297 | 70.69 | |||||||||||||||||||||||||||||||||||
| 2029 | 9,944 | 9,944 | 584,965 | 58.83 | 831,999 | 83.67 | |||||||||||||||||||||||||||||||||||
| Thereafter | 41,285 | 39,887 | 2,893,783 | 72.55 | 3,354,726 | 84.11 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 160,435 | 110,842 | 6,134,846 | $ | 55.35 | 6,136,487 | 55.36 | 4 | |||||||||||||||||||||||||||||||||
| 2021 | 875,553 | 845,283 | 45,575,782 | 53.92 | 46,120,549 | 54.56 | |||||||||||||||||||||||||||||||||||
| 2022 | 727,196 | 603,076 | 41,247,195 | 68.39 | 42,454,022 | 70.40 | |||||||||||||||||||||||||||||||||||
| 2023 | 653,060 | 597,371 | 44,005,362 | 73.67 | 47,153,833 | 78.94 | |||||||||||||||||||||||||||||||||||
| 2024 | 656,044 | 622,294 | 43,605,460 | 70.07 | 45,268,238 | 72.74 | |||||||||||||||||||||||||||||||||||
| 2025 | 490,386 | 482,054 | 37,782,500 | 78.38 | 42,284,307 | 87.72 | |||||||||||||||||||||||||||||||||||
| 2026 | 515,496 | 432,463 | 35,577,375 | 82.27 | 39,118,869 | 90.46 | |||||||||||||||||||||||||||||||||||
| 2027 | 390,517 | 387,194 | 33,873,035 | 87.48 | 38,712,097 | 99.98 | |||||||||||||||||||||||||||||||||||
| 2028 | 513,687 | 501,431 | 42,070,321 | 83.90 | 49,654,228 | 99.03 | |||||||||||||||||||||||||||||||||||
| 2029 | 269,832 | 251,548 | 22,780,796 | 90.56 | 28,196,217 | 112.09 | |||||||||||||||||||||||||||||||||||
| Thereafter | 1,815,398 | 1,797,634 | 167,746,385 | 93.32 | 199,893,029 | 111.20 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
46
| Q3 2020 | ||||
Lease expirations - San Francisco region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 4,281 | 4,281 | 340,910 | 79.63 | 340,910 | 79.63 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 154,938 | 105,345 | 5,742,581 | 54.51 | 5,744,222 | 54.53 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 159,219 | 109,626 | 6,083,490 | 55.49 | 6,085,131 | 55.51 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 344,353 | 338,497 | 15,042,834 | 44.44 | 15,120,111 | 44.67 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 166,032 | 158,177 | 9,475,078 | 59.90 | 9,493,489 | 60.02 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 160,764 | 152,466 | 9,630,779 | 63.17 | 9,785,209 | 64.18 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 186,110 | 177,851 | 10,169,456 | 57.18 | 10,449,339 | 58.75 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 857,259 | 826,989 | 44,318,148 | 53.59 | 44,848,147 | 54.23 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 1,216 | 1,216 | 51,356 | 42.23 | 51,356 | 42.23 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 1,216 | 1,216 | 51,356 | 42.23 | 51,356 | 42.23 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 1,964 | 1,964 | 183,819 | 93.59 | 183,819 | 93.59 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 12,999 | 12,999 | 853,912 | 65.69 | 853,912 | 65.69 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 821 | 821 | 84,253 | 102.62 | 86,222 | 105.02 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 2,510 | 2,510 | 135,651 | 54.04 | 148,450 | 59.14 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 18,294 | 18,294 | 1,257,634 | 68.75 | 1,272,402 | 69.55 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 4,281 | 4,281 | 340,910 | 79.63 | 340,910 | 79.63 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 156,154 | 106,561 | 5,793,937 | 54.37 | 5,795,578 | 54.39 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 160,435 | 110,842 | 6,134,846 | 55.35 | 6,136,487 | 55.36 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 346,317 | 340,461 | 15,226,653 | 44.72 | 15,303,930 | 44.95 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 179,031 | 171,176 | 10,328,990 | 60.34 | 10,347,401 | 60.45 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 161,585 | 153,287 | 9,715,032 | 63.38 | 9,871,431 | 64.40 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 188,620 | 180,361 | 10,305,107 | 57.14 | 10,597,789 | 58.76 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 875,553 | 845,283 | 45,575,782 | 53.92 | 46,120,549 | 54.56 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
47
| Q3 2020 | ||||
Lease expirations - Washington, DC region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 239,443 | 221,472 | 8,681,909 | 39.20 | 8,696,822 | 39.27 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 347,377 | 339,239 | 15,500,788 | 45.69 | 15,513,079 | 45.73 | |||||||||||||||||||||||||||||||||||
| 2022 | 315,518 | 271,828 | 13,037,038 | 47.96 | 13,459,989 | 49.52 | |||||||||||||||||||||||||||||||||||
| 2023 | 220,620 | 210,315 | 11,589,746 | 55.11 | 12,297,599 | 58.47 | |||||||||||||||||||||||||||||||||||
| 2024 | 712,576 | 667,002 | 37,581,613 | 56.34 | 40,162,606 | 60.21 | |||||||||||||||||||||||||||||||||||
| 2025 | 537,732 | 367,582 | 14,073,918 | 38.29 | 15,207,565 | 41.37 | |||||||||||||||||||||||||||||||||||
| 2026 | 504,983 | 440,617 | 33,162,934 | 75.26 | 36,426,752 | 82.67 | |||||||||||||||||||||||||||||||||||
| 2027 | 552,856 | 400,839 | 23,108,177 | 57.65 | 25,405,253 | 63.38 | |||||||||||||||||||||||||||||||||||
| 2028 | 189,998 | 142,399 | 9,669,676 | 67.91 | 11,281,225 | 79.22 | |||||||||||||||||||||||||||||||||||
| 2029 | 654,071 | 628,740 | 29,192,431 | 46.43 | 35,740,577 | 56.84 | |||||||||||||||||||||||||||||||||||
| Thereafter | 2,624,563 | 2,199,898 | 139,594,813 | 63.46 | 177,471,813 | 80.67 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 20,814 | 19,399 | 1,452,170 | 74.86 | 1,856,184 | 95.69 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 35,942 | 35,942 | 2,619,659 | 72.89 | 2,633,822 | 73.28 | |||||||||||||||||||||||||||||||||||
| 2022 | 55,976 | 50,430 | 2,534,537 | 50.26 | 2,794,395 | 55.41 | |||||||||||||||||||||||||||||||||||
| 2023 | 73,817 | 70,696 | 4,109,250 | 58.13 | 4,222,187 | 59.72 | |||||||||||||||||||||||||||||||||||
| 2024 | 31,490 | 29,673 | 1,685,193 | 56.79 | 2,175,440 | 73.31 | |||||||||||||||||||||||||||||||||||
| 2025 | 84,655 | 79,396 | 3,166,672 | 39.88 | 3,425,478 | 43.14 | |||||||||||||||||||||||||||||||||||
| 2026 | 41,653 | 40,446 | 2,097,106 | 51.85 | 2,757,878 | 68.19 | |||||||||||||||||||||||||||||||||||
| 2027 | 29,237 | 24,067 | 1,818,877 | 75.57 | 2,065,082 | 85.80 | |||||||||||||||||||||||||||||||||||
| 2028 | 77,624 | 63,440 | 1,607,321 | 25.34 | 1,766,198 | 27.84 | |||||||||||||||||||||||||||||||||||
| 2029 | 19,803 | 14,731 | 682,633 | 46.34 | 864,294 | 58.67 | |||||||||||||||||||||||||||||||||||
| Thereafter | 88,423 | 80,915 | 4,552,986 | 56.27 | 5,034,026 | 62.21 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 260,257 | 240,871 | 10,134,079 | 42.07 | 10,553,006 | 43.81 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 383,319 | 375,181 | 18,120,447 | 48.30 | 18,146,901 | 48.37 | |||||||||||||||||||||||||||||||||||
| 2022 | 371,494 | 322,258 | 15,571,575 | 48.32 | 16,254,384 | 50.44 | |||||||||||||||||||||||||||||||||||
| 2023 | 294,437 | 281,011 | 15,698,996 | 55.87 | 16,519,786 | 58.79 | |||||||||||||||||||||||||||||||||||
| 2024 | 744,066 | 696,675 | 39,266,806 | 56.36 | 42,338,046 | 60.77 | |||||||||||||||||||||||||||||||||||
| 2025 | 622,387 | 446,978 | 17,240,590 | 38.57 | 18,633,043 | 41.69 | |||||||||||||||||||||||||||||||||||
| 2026 | 546,636 | 481,063 | 35,260,040 | 73.30 | 39,184,630 | 81.45 | |||||||||||||||||||||||||||||||||||
| 2027 | 582,093 | 424,906 | 24,927,054 | 58.66 | 27,470,335 | 64.65 | |||||||||||||||||||||||||||||||||||
| 2028 | 267,622 | 205,839 | 11,276,997 | 54.79 | 13,047,423 | 63.39 | |||||||||||||||||||||||||||||||||||
| 2029 | 673,874 | 643,471 | 29,875,064 | 46.43 | 36,604,871 | 56.89 | |||||||||||||||||||||||||||||||||||
| Thereafter | 2,712,986 | 2,280,813 | 144,147,799 | 63.20 | 182,505,839 | 80.02 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
48
| Q3 2020 | ||||
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3 | |||||
as of September 30, 2020
OFFICE
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q4 2020 | 239,443 | 221,472 | 8,681,909 | 39.20 | 8,696,822 | 39.27 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 239,443 | 221,472 | 8,681,909 | 39.20 | 8,696,822 | 39.27 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 80,580 | 80,580 | 3,309,939 | 41.08 | 3,334,800 | 41.38 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 98,145 | 93,256 | 3,935,445 | 42.20 | 3,742,715 | 40.13 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 101,410 | 98,162 | 6,529,673 | 66.52 | 6,669,121 | 67.94 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 67,242 | 67,242 | 1,725,731 | 25.66 | 1,766,443 | 26.27 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 347,377 | 339,239 | 15,500,788 | 45.69 | 15,513,079 | 45.73 | |||||||||||||||||||||||||||||||||||
RETAIL
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 3,962 | 3,962 | 441,528 | 111.44 | 395,542 | 99.83 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 16,852 | 15,437 | 1,010,642 | 65.47 | 1,460,642 | 94.62 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 20,814 | 19,399 | 1,452,170 | 74.86 | 1,856,184 | 95.69 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 14,559 | 14,559 | 1,226,274 | 84.23 | 1,226,274 | 84.23 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 11,930 | 11,930 | 822,173 | 68.92 | 822,173 | 68.92 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 4,491 | 4,491 | 285,192 | 63.50 | 285,192 | 63.50 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 4,962 | 4,962 | 286,019 | 57.64 | 300,183 | 60.50 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 35,942 | 35,942 | 2,619,659 | 72.89 | 2,633,822 | 73.28 | |||||||||||||||||||||||||||||||||||
TOTAL PROPERTY TYPES
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Lease Expiration | |||||||||||||||||||||||||||||||||||||||||
| by Quarter | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| Q1 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q2 2020 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Q3 2020 | 3,962 | 3,962 | 441,528 | 111.44 | 395,542 | 99.83 | 4 | ||||||||||||||||||||||||||||||||||
| Q4 2020 | 256,295 | 236,909 | 9,692,551 | 40.91 | 10,157,464 | 42.87 | |||||||||||||||||||||||||||||||||||
| Total 2020 | 260,257 | 240,871 | 10,134,079 | 42.07 | 10,553,006 | 43.81 | |||||||||||||||||||||||||||||||||||
| Q1 2021 | 95,139 | 95,139 | 4,536,213 | 47.68 | 4,561,074 | 47.94 | |||||||||||||||||||||||||||||||||||
| Q2 2021 | 110,075 | 105,186 | 4,757,618 | 45.23 | 4,564,888 | 43.40 | |||||||||||||||||||||||||||||||||||
| Q3 2021 | 105,901 | 102,653 | 6,814,865 | 66.39 | 6,954,313 | 67.75 | |||||||||||||||||||||||||||||||||||
| Q4 2021 | 72,204 | 72,204 | 2,011,750 | 27.86 | 2,066,626 | 28.62 | |||||||||||||||||||||||||||||||||||
| Total 2021 | 383,319 | 375,181 | 18,120,447 | 48.30 | 18,146,901 | 48.37 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
49
| Q3 2020 | ||||
Lease expirations - CBD properties 1, 2, 3, 5 | |||||
as of September 30, 2020
Boston
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 465,496 | 426,066 | 17,479,111 | 41.02 | 17,354,573 | 40.73 | 4, 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 219,896 | 198,678 | 12,959,613 | 65.23 | 13,023,698 | 65.55 | |||||||||||||||||||||||||||||||||||
| 2022 | 305,413 | 237,078 | 16,459,753 | 69.43 | 16,749,493 | 70.65 | |||||||||||||||||||||||||||||||||||
| 2023 | 475,595 | 416,194 | 30,723,633 | 73.82 | 32,266,364 | 77.53 | |||||||||||||||||||||||||||||||||||
| 2024 | 464,912 | 435,709 | 29,330,812 | 67.32 | 30,239,114 | 69.40 | |||||||||||||||||||||||||||||||||||
| 2025 | 350,895 | 334,380 | 26,182,763 | 78.30 | 27,757,084 | 83.01 | |||||||||||||||||||||||||||||||||||
| 2026 | 1,074,870 | 834,946 | 62,946,308 | 75.39 | 69,425,889 | 83.15 | |||||||||||||||||||||||||||||||||||
| 2027 | 377,127 | 377,127 | 32,675,648 | 86.64 | 36,028,631 | 95.53 | |||||||||||||||||||||||||||||||||||
| 2028 | 924,309 | 924,309 | 65,146,509 | 70.48 | 70,341,983 | 76.10 | |||||||||||||||||||||||||||||||||||
| 2029 | 468,280 | 373,755 | 26,109,687 | 69.86 | 29,760,696 | 79.63 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,370,629 | 3,847,503 | 270,672,665 | 70.35 | 338,156,567 | 87.89 | |||||||||||||||||||||||||||||||||||
Los Angeles
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 214,746 | 117,900 | 5,739,624 | 48.68 | 5,739,624 | 48.68 | |||||||||||||||||||||||||||||||||||
| 2021 | 452,836 | 227,532 | 17,292,765 | 76.00 | 17,639,892 | 77.53 | |||||||||||||||||||||||||||||||||||
| 2022 | 106,686 | 56,706 | 3,513,439 | 61.96 | 3,719,253 | 65.59 | |||||||||||||||||||||||||||||||||||
| 2023 | 164,960 | 87,057 | 5,604,552 | 64.38 | 6,169,669 | 70.87 | |||||||||||||||||||||||||||||||||||
| 2024 | 133,021 | 73,062 | 4,522,931 | 61.91 | 5,187,989 | 71.01 | |||||||||||||||||||||||||||||||||||
| 2025 | 21,923 | 12,058 | 735,519 | 61 | 865,253 | 71.76 | |||||||||||||||||||||||||||||||||||
| 2026 | 456,975 | 251,336 | 16,441,872 | 65.42 | 19,366,861 | 77.06 | |||||||||||||||||||||||||||||||||||
| 2027 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| 2028 | 280,704 | 144,608 | 10,086,546 | 69.75 | 13,485,320 | 93.25 | |||||||||||||||||||||||||||||||||||
| 2029 | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||
| Thereafter | 369,480 | 185,004 | 12,316,834 | 66.58 | 20,280,491 | 109.62 | |||||||||||||||||||||||||||||||||||
New York
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 392,022 | 224,545 | 18,299,789 | 81.50 | 18,299,789 | 81.50 | 4, 5 | ||||||||||||||||||||||||||||||||||
| 2021 | 284,827 | 220,708 | 23,588,904 | 106.88 | 23,588,904 | 106.88 | |||||||||||||||||||||||||||||||||||
| 2022 | 530,442 | 429,317 | 43,485,767 | 101.29 | 43,571,277 | 101.49 | |||||||||||||||||||||||||||||||||||
| 2023 | 353,288 | 267,871 | 31,083,715 | 116.04 | 34,610,003 | 129.2 | |||||||||||||||||||||||||||||||||||
| 2024 | 660,103 | 480,854 | 54,348,596 | 113.03 | 54,465,639 | 113.27 | |||||||||||||||||||||||||||||||||||
| 2025 | 381,877 | 317,981 | 35,140,683 | 110.51 | 36,989,389 | 116.33 | |||||||||||||||||||||||||||||||||||
| 2026 | 509,161 | 311,516 | 45,759,005 | 146.89 | 44,320,120 | 142.27 | |||||||||||||||||||||||||||||||||||
| 2027 | 255,424 | 171,774 | 19,862,601 | 115.63 | 21,337,437 | 124.22 | |||||||||||||||||||||||||||||||||||
| 2028 | 216,656 | 194,610 | 20,437,403 | 105.02 | 22,029,272 | 113.2 | |||||||||||||||||||||||||||||||||||
| 2029 | 586,449 | 560,082 | 61,078,279 | 109.05 | 66,349,832 | 118.46 | |||||||||||||||||||||||||||||||||||
| Thereafter | 4,100,574 | 3,117,038 | 326,684,018 | 104.81 | 400,096,998 | 128.36 | |||||||||||||||||||||||||||||||||||
50
| Q3 2020 | ||||
Lease expirations - CBD properties (continued) 1, 2, 3, 5 | |||||
as of September 30, 2020
San Francisco
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 43,568 | 43,568 | 3,293,324 | 75.59 | 3,293,324 | 75.59 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 392,776 | 392,776 | 29,484,288 | 75.07 | 29,777,502 | 75.81 | |||||||||||||||||||||||||||||||||||
| 2022 | 420,047 | 420,047 | 31,473,696 | 74.93 | 32,291,457 | 76.88 | |||||||||||||||||||||||||||||||||||
| 2023 | 400,003 | 400,003 | 31,087,659 | 77.72 | 33,352,518 | 83.38 | |||||||||||||||||||||||||||||||||||
| 2024 | 536,016 | 536,016 | 38,485,470 | 71.80 | 39,594,125 | 73.87 | |||||||||||||||||||||||||||||||||||
| 2025 | 303,418 | 303,418 | 24,579,957 | 81.01 | 27,428,623 | 90.40 | |||||||||||||||||||||||||||||||||||
| 2026 | 349,430 | 349,430 | 28,932,860 | 82.80 | 31,715,851 | 90.76 | |||||||||||||||||||||||||||||||||||
| 2027 | 351,610 | 351,610 | 31,409,853 | 89.33 | 35,752,701 | 101.68 | |||||||||||||||||||||||||||||||||||
| 2028 | 489,175 | 489,175 | 41,464,132 | 84.76 | 48,887,789 | 99.94 | |||||||||||||||||||||||||||||||||||
| 2029 | 233,264 | 233,264 | 21,957,599 | 94.13 | 27,139,494 | 116.35 | |||||||||||||||||||||||||||||||||||
| Thereafter | 1,779,868 | 1,779,868 | 166,946,580 | 93.80 | 198,798,364 | 111.69 | |||||||||||||||||||||||||||||||||||
Washington, DC
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 52,681 | 33,294 | 1,882,181 | 56.53 | 1,846,271 | 55.45 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 54,846 | 46,708 | 4,030,305 | 86.29 | 4,086,075 | 87.48 | |||||||||||||||||||||||||||||||||||
| 2022 | 119,398 | 70,162 | 4,848,503 | 69.10 | 5,102,689 | 72.73 | |||||||||||||||||||||||||||||||||||
| 2023 | 51,216 | 37,790 | 2,814,100 | 74.47 | 2,967,005 | 78.51 | |||||||||||||||||||||||||||||||||||
| 2024 | 183,007 | 164,786 | 12,928,082 | 78.45 | 13,842,320 | 84.00 | |||||||||||||||||||||||||||||||||||
| 2025 | 172,610 | 60,816 | 3,463,547 | 56.95 | 3,763,780 | 61.89 | |||||||||||||||||||||||||||||||||||
| 2026 | 343,562 | 277,990 | 26,483,768 | 95.27 | 29,490,009 | 106.08 | |||||||||||||||||||||||||||||||||||
| 2027 | 216,998 | 75,514 | 5,973,131 | 79.10 | 6,732,148 | 89.15 | |||||||||||||||||||||||||||||||||||
| 2028 | 196,742 | 134,959 | 9,571,631 | 70.92 | 11,134,775 | 82.51 | |||||||||||||||||||||||||||||||||||
| 2029 | 59,730 | 29,327 | 2,130,516 | 72.65 | 2,548,324 | 86.89 | |||||||||||||||||||||||||||||||||||
| Thereafter | 1,404,272 | 972,098 | 74,159,783 | 76.29 | 91,745,700 | 94.38 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units and hotel.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2020, the Company terminated leases for an aggregate of (A) 310,363 square feet of space in Boston, of which BXP’s Share is 278,425 SF and (B) 366,467 SF of space in New York of which BXP’s Share is 190,649 SF. BXP’s Share of current and future annualized rental obligations is (A) $8,064,337 for Boston and (B) $16,142,333 for New York for which the Company is not currently recognizing revenue..
51
| Q3 2020 | ||||
Lease expirations - Suburban properties 1, 2, 3 | |||||
as of September 30, 2020
Boston
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 93,868 | 93,868 | 4,248,907 | 45.26 | 4,248,907 | 45.26 | |||||||||||||||||||||||||||||||||||
| 2021 | 599,132 | 599,132 | 24,146,090 | 40.30 | 24,228,726 | 40.44 | |||||||||||||||||||||||||||||||||||
| 2022 | 635,934 | 635,934 | 29,673,775 | 46.66 | 26,012,427 | 40.90 | |||||||||||||||||||||||||||||||||||
| 2023 | 276,849 | 276,849 | 11,856,497 | 42.83 | 12,451,797 | 44.98 | |||||||||||||||||||||||||||||||||||
| 2024 | 468,487 | 468,487 | 21,037,819 | 44.91 | 22,091,250 | 47.15 | |||||||||||||||||||||||||||||||||||
| 2025 | 775,763 | 775,763 | 38,887,153 | 50.13 | 40,547,634 | 52.27 | |||||||||||||||||||||||||||||||||||
| 2026 | 228,139 | 228,139 | 11,484,683 | 50.34 | 13,889,699 | 60.88 | |||||||||||||||||||||||||||||||||||
| 2027 | 339,527 | 339,527 | 14,579,160 | 42.94 | 16,554,535 | 48.76 | |||||||||||||||||||||||||||||||||||
| 2028 | 203,818 | 203,818 | 9,125,200 | 44.77 | 10,076,963 | 49.44 | |||||||||||||||||||||||||||||||||||
| 2029 | 290,572 | 290,572 | 10,797,026 | 37.16 | 12,928,142 | 44.49 | |||||||||||||||||||||||||||||||||||
| Thereafter | 521,842 | 464,358 | 22,549,129 | 48.56 | 23,574,347 | 50.77 | |||||||||||||||||||||||||||||||||||
New York
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 18,194 | 18,194 | 717,582 | 39.44 | 717,582 | 39.44 | |||||||||||||||||||||||||||||||||||
| 2021 | 75,179 | 75,179 | 2,610,403 | 34.72 | 2,563,100 | 34.09 | |||||||||||||||||||||||||||||||||||
| 2022 | 111,459 | 111,459 | 4,178,945 | 37.49 | 4,222,869 | 37.89 | |||||||||||||||||||||||||||||||||||
| 2023 | 47,667 | 47,667 | 1,733,055 | 36.36 | 1,774,767 | 37.23 | |||||||||||||||||||||||||||||||||||
| 2024 | 484,059 | 484,059 | 18,285,343 | 37.78 | 18,721,097 | 38.68 | |||||||||||||||||||||||||||||||||||
| 2025 | 223,427 | 223,427 | 8,609,584 | 38.53 | 9,098,608 | 40.72 | |||||||||||||||||||||||||||||||||||
| 2026 | 214,924 | 214,924 | 8,815,250 | 41.02 | 9,430,096 | 43.88 | |||||||||||||||||||||||||||||||||||
| 2027 | 219,506 | 219,506 | 7,907,805 | 36.03 | 8,538,295 | 38.90 | |||||||||||||||||||||||||||||||||||
| 2028 | 54,551 | 54,551 | 2,053,754 | 37.65 | 2,239,204 | 41.05 | |||||||||||||||||||||||||||||||||||
| 2029 | 46,766 | 46,766 | 1,648,501 | 35.25 | 1,858,948 | 39.75 | |||||||||||||||||||||||||||||||||||
| Thereafter | 227,517 | 227,517 | 8,688,366 | 38.19 | 9,815,343 | 43.14 | |||||||||||||||||||||||||||||||||||
San Francisco
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 116,867 | 67,274 | 2,841,522 | 42.24 | 2,843,163 | 42.26 | |||||||||||||||||||||||||||||||||||
| 2021 | 482,777 | 452,507 | 16,091,494 | 35.56 | 16,343,047 | 36.12 | |||||||||||||||||||||||||||||||||||
| 2022 | 307,149 | 183,029 | 9,773,499 | 53.40 | 10,162,565 | 55.52 | |||||||||||||||||||||||||||||||||||
| 2023 | 253,057 | 197,368 | 12,917,704 | 65.45 | 13,801,315 | 69.93 | |||||||||||||||||||||||||||||||||||
| 2024 | 120,028 | 86,278 | 5,119,991 | 59.34 | 5,674,113 | 65.77 | |||||||||||||||||||||||||||||||||||
| 2025 | 186,968 | 178,636 | 13,202,543 | 73.91 | 14,855,684 | 83.16 | |||||||||||||||||||||||||||||||||||
| 2026 | 166,066 | 83,033 | 6,644,514 | 80.02 | 7,403,017 | 89.16 | |||||||||||||||||||||||||||||||||||
| 2027 | 38,907 | 35,584 | 2,463,182 | 69.22 | 2,959,395 | 83.17 | |||||||||||||||||||||||||||||||||||
| 2028 | 24,512 | 12,256 | 606,188 | 49.46 | 766,440 | 62.54 | |||||||||||||||||||||||||||||||||||
| 2029 | 36,568 | 18,284 | 823,196 | 45.02 | 1,056,723 | 57.79 | |||||||||||||||||||||||||||||||||||
| Thereafter | 35,530 | 17,765 | 799,805 | 45.02 | 1,094,665 | 61.62 | |||||||||||||||||||||||||||||||||||
52
| Q3 2020 | ||||
Lease expirations - Suburban properties (continued) 1, 2, 3 | |||||
as of September 30, 2020
Washington, DC
| BXP’s Share | |||||||||||||||||||||||||||||||||||||||||
| Rentable Square Footage Subject to Expiring Leases | Rentable Square Footage Subject to Expiring Leases | Current Annualized Rental Obligations Under Expiring Leases | Annualized Rental Obligations Under Expiring Leases with future step-ups | ||||||||||||||||||||||||||||||||||||||
| Year of Lease | |||||||||||||||||||||||||||||||||||||||||
| Expiration | $ | $/PSF | $ | $/PSF | |||||||||||||||||||||||||||||||||||||
| 2020 | 207,576 | 207,576 | 8,251,898 | 39.75 | 8,706,735 | 41.94 | 4 | ||||||||||||||||||||||||||||||||||
| 2021 | 328,473 | 328,473 | 14,090,142 | 42.90 | 14,060,826 | 42.81 | |||||||||||||||||||||||||||||||||||
| 2022 | 252,096 | 252,096 | 10,723,072 | 42.54 | 11,151,695 | 44.24 | |||||||||||||||||||||||||||||||||||
| 2023 | 243,221 | 243,221 | 12,884,896 | 52.98 | 13,552,781 | 55.72 | |||||||||||||||||||||||||||||||||||
| 2024 | 561,059 | 531,889 | 26,338,723 | 49.52 | 28,495,727 | 53.57 | |||||||||||||||||||||||||||||||||||
| 2025 | 449,777 | 386,163 | 13,777,043 | 35.68 | 14,869,262 | 38.51 | |||||||||||||||||||||||||||||||||||
| 2026 | 203,074 | 203,074 | 8,776,271 | 43.22 | 9,694,622 | 47.74 | |||||||||||||||||||||||||||||||||||
| 2027 | 365,095 | 349,393 | 18,953,923 | 54.25 | 20,738,187 | 59.35 | |||||||||||||||||||||||||||||||||||
| 2028 | 70,880 | 70,880 | 1,705,366 | 24.06 | 1,912,648 | 26.98 | |||||||||||||||||||||||||||||||||||
| 2029 | 614,144 | 614,144 | 27,744,548 | 45.18 | 34,056,548 | 55.45 | |||||||||||||||||||||||||||||||||||
| Thereafter | 1,308,714 | 1,308,714 | 69,988,016 | 53.48 | 90,760,138 | 69.35 | |||||||||||||||||||||||||||||||||||
_____________
1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.
2Includes partially placed in-service leased space. Does not include residential units and hotel.
3Does 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.
4Includes square feet expiring on the last day of the current quarter.
53
| Q3 2020 | ||||
| Research coverage | |||||
With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to Thomson Reuters Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by the analysts listed above do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.
| Equity Research Coverage | |||||||||||
| Argus Research Company | Jacob Kilstein | 646.747.5447 | |||||||||
| Bank of America Merrill Lynch | Jeffrey Spector / Jamie Feldman | 646.855.1363 / 646.855.5808 | |||||||||
| BMO Capital | John Kim | 212.885.4115 | |||||||||
| BTIG | Tom Catherwood | 212.738.6140 | |||||||||
| Citi | Michael Bilerman / Emmanuel Korchman | 212.816.1383 / 212.816.1382 | |||||||||
| Deutsche Bank Securities | Derek Johnston | 212.250.5683 | |||||||||
| Evercore ISI | Steve Sakwa | 212.446.9462 | |||||||||
| Goldman Sachs & Company, Inc. | Richard Skidmore | 801.741.5459 | |||||||||
| Green Street Advisors | Daniel Ismail | 949.640.8780 | |||||||||
| Jefferies & Co. | Jonathan Petersen | 212.284.1705 / 212.336.7076 | |||||||||
| J.P. Morgan Securities | Anthony Paolone | 212.622.6682 | |||||||||
| KeyBanc Capital Markets | Craig Mailman / Jordan Sadler | 917.368.2316 / 917.368.2280 | |||||||||
| Mizuho Securities | Omotayo Okusanya | 212.205.7855 | |||||||||
| Morgan Stanley | Vikram Malhotra | 212.761.7064 | |||||||||
| Morningstar | Michael Wong | 312.384.5404 | |||||||||
| Piper Sandler Companies | Alexander Goldfarb / Daniel Santos | 212.466.7937 / 212.466.7927 | |||||||||
| RW Baird | David Rodgers | 216.737.7341 | |||||||||
| Scotiabank GBM | Nicholas Yulico | 212.225.6904 | |||||||||
| SMBC Nikko Securities Inc. | Richard Anderson | 646.521.2351 | |||||||||
| Truist Securities | Michael Lewis | 212.319.5659 | |||||||||
| Wells Fargo Securities | Blaine Heck | 443.263.6529 | |||||||||
| Debt Research Coverage | |||||||||||
| Bank of America Merrill Lynch | Andrew Molloy | 646.855.6435 | |||||||||
| Barclays | Peter Troisi | 212.412.3695 | |||||||||
| J.P. Morgan Securities | Mark Streeter | 212.834.5086 | |||||||||
| US Bank | Bill Stafford | 877.558.2605 | |||||||||
| Wells Fargo | Thierry Perrein / Kevin McClure | 704.715.8455 / 704.410.3252 | |||||||||
| Rating Agencies | |||||||||||
| Moody’s Investors Service | Ranjini Venkatesan | 212.553.3828 | |||||||||
| Standard & Poor’s | Michael Souers | 212.438.2508 | |||||||||
54
| Q3 2020 | ||||
| Definitions | |||||
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this supplemental report and, if applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents the Company files or furnishes to the SEC from time to time.
The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company). Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures. The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 59.
Annualized Rental Obligations
Annualized Rental Obligations is defined as monthly Rental Obligations, as of the last day of the reporting period, multiplied by twelve (12).
Average Economic Occupancy
Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue.
Average Monthly Rental Rates
Average Monthly Rental Rates are calculated by the Company as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP by (B) the number of occupied units for each month within the applicable fiscal period.
Average Physical Occupancy
Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage.
Debt to Market Capitalization Ratio
Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector that equals the quotient of (A) the Company’s Consolidated Debt divided by (B) the Company’s Consolidated Market Capitalization, presented as a percentage. Consolidated Market Capitalization is the sum of (x) the Company’s Consolidated Debt plus (y) the market value of the Company’s outstanding equity securities calculated using the closing price per share of common stock of the Company, as reported by the New York Stock Exchange, multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, (4) on and after February 6, 2015, which was the end of the performance period for 2012 OPP Units and thus the date earned, common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) on and after February 4, 2016, which was the end of the performance period for 2013 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units, (6) on and after February 3, 2017, which was the end of the performance period for 2014 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units, (7) on and after February 4, 2018, which was the end of the performance period for 2015 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2015 MYLTIP Units that were issued in the form of LTIP Units, (8) on and after February 9, 2019, which was the end of the performance period for 2016 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2016 MYLTIP Units that were issued in the form of LTIP Units and (9) on and after February 6, 2020, which was the end of the performance period for 2017 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2017 MYLTIP Units that were issued in the form of LTIP Units plus (z) outstanding shares of 5.25% Series B Cumulative Redeemable Preferred Stock multiplied by their fixed liquidation preference of $2,500 per share. The calculation of Consolidated Market Capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, 2018, 2019 and 2020 MYLTIP Units are not included.
The Company also presents BXP’s Share of Market Capitalization, which is calculated in a similar manner, except that BXP’s Share of Debt is utilized instead of the Company’s Consolidated Debt in both the numerator and the denominator. The Company presents these ratios because its degree of leverage could affect its ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of the Company, and as such will fluctuate with changes in such price and do not necessarily reflect the Company’s capacity to incur additional debt to finance its activities or its ability to manage its existing debt obligations. However, for a company like Boston Properties, Inc., whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are 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 the Company’s outstanding indebtedness.
55
| Q3 2020 | ||||
| Definitions (continued) | |||||
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
Pursuant to the definition of Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), the Company calculates EBITDAre as net income (loss) attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus net income attributable to noncontrolling interests, interest expense, losses (gains) from early extinguishments of debt, depreciation and amortization expense, impairment loss and adjustments to reflect the Company’s share of EBITDAre from unconsolidated joint ventures less gains (losses) on sales of real estate. EBITDAre is a non-GAAP financial measure. The Company uses EBITDAre internally as a performance measure and believes EBITDAre provides useful information to investors regarding its financial condition and results of operations at the corporate level because, when compared across periods, EBITDAre reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and acquisition and development activities on an unleveraged basis, providing perspective not immediately apparent from net (loss) income attributable to Boston Properties, Inc. common shareholders.
In some cases the Company also presents (A) BXP’s Share of EBITDAre – cash, which is BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements, and (B) Annualized EBITDAre, which is EBITDAre for the applicable fiscal quarter ended multiplied by four (4). Presenting BXP’s Share of EBITDAre – cash allows investors to compare EBITDAre across periods without taking into account the effect of certain non-cash rental revenues, ground rent expense and stock based compensation expense. Similar to depreciation and amortization, because of historical cost accounting, fair value lease revenue may distort operating performance measures at the property level. Additionally, presenting EBITDAre excluding the impact of straight-line rent provides investors with an alternative view of operating performance at the property level that more closely reflects rental revenue generated at the property level without regard to future contractual increases in rental rates. In addition, the Company’s management believes that the presentation of Annualized EBITDAre provides useful information to investors regarding the Company’s results of operations because it enables investors to more easily compare quarterly EBITDAre to EBITDAre from full fiscal years.
The Company’s computation of EBITDAre may not be comparable to EBITDAre 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. The Company believes that in order to facilitate a clear understanding of its operating results, EBITDAre should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. EBITDAre should not be considered a substitute to net income attributable to Boston Properties, Inc. common shareholders in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.
Fixed Charge Coverage Ratio
Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements. Total Fixed Charges is also a non-GAAP financial measure equal to the sum of BXP’s Share of interest expense, capitalized interest, maintenance capital expenditures, hotel improvements, equipment upgrades and replacements and preferred dividends/distributions less hedge amortization and amortization of financing costs. The Company believes that the presentation of its Fixed Charge Coverage Ratio provides investors with useful information about the Company’s financial performance as it relates to overall financial flexibility and balance sheet management. Furthermore, the Company believes that the Fixed Charge Coverage Ratio is frequently used by analysts, rating agencies and other interested parties in the evaluation of the Company’s performance as a REIT and, as a result, by presenting the Fixed Charge Coverage Ratio the Company assists these parties in their evaluations. The Company’s calculation of its Fixed Charge Coverage Ratio may not be comparable to the ratios reported by other REITs or real estate companies that define the term differently and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.
Funds Available for Distribution (FAD) and FAD Payout Ratio
In addition to FFO, which is defined on the following page, the Company presents Funds Available for Distribution to common shareholders and common unitholders (FAD), which is a non-GAAP financial measure that is calculated by (1) adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (gains) from early extinguishments of debt, stock-based compensation expense, partners’ share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences) and unearned portion of capitalized fees, (2) eliminating the effects of straight-line rent, straight-line ground rent expense adjustment, hedge amortization and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.’s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.
FAD Payout Ratio is defined as distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.
56
| Q3 2020 | ||||
| Definitions (continued) | |||||
Funds from Operations (FFO)
Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates 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 the Company’s balance sheet, impairment losses on its 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 the Company believes 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 the Company’s 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.
The Company’s 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 order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.
In-Service Properties
The Company treats a property as being “in-service” upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire 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, the Company specifies a single date for treating a property as “in-service,” which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In addition, under GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being “in-service,” and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company’s unconsolidated joint ventures.
Interest Coverage Ratio
Interest Coverage Ratio, calculated including and excluding capitalized interest, is a non-GAAP financial measure equal to BXP’s Share of EBITDAre – cash divided by Adjusted interest expense. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements. Adjusted interest expense excluding capitalized interest is equal to BXP’s Share of interest expense less (1) BXP’s Share of hedge amortization and (2) BXP’s Share of amortization of financing costs. Adjusted interest expense including capitalized interest is calculated in the same manner but adds back BXP’s Share of capitalized interest. The Company believes that the presentation of its Interest Coverage Ratio provides useful information about the Company’s financial condition because it provides investors additional information on the Company’s ability to meet its debt obligations and incur additional indebtedness. In addition, by analyzing interest coverage ratios over a period of time, trends may emerge that provide investors a better sense of whether a company’s financial condition is improving or declining. The ratios may also be used to compare the financial condition of different companies, which can help when making an investment decision. The Company presents its Interest Coverage Ratio in two ways - including capitalized interest and excluding capitalized interest. GAAP requires the capitalization of interest expense during development. Therefore, for a company like Boston Properties, Inc. that is an active developer of real estate, presenting the Interest Coverage Ratio (excluding capitalized interest) provides an alternative measure of financial condition that may be more indicative of the Company’s ability to meet its interest expense obligations and therefore its overall financial condition. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.
Market Rents
Market Rents used by the Company in calculating Average Economic Occupancy are based on the current market rates set by the managers of the Company’s residential properties based on their experience in renting their residential property’s units and publicly available market data. Trends in market rents for a region as reported by others could therefore vary materially. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.
Net Debt
Net Debt is equal to (A) the Company’s consolidated debt plus special dividends payable (if any) less (B) cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s). The Company believes that the presentation of Net Debt provides useful information to investors because the Company reviews Net Debt as part of the management of its overall financial flexibility, capital structure and leverage. In particular, Net Debt is an important component of the Company’s ratio of BXP’s Share of Net Debt to BXP’s Share of EBITDAre. BXP’s Share of Net Debt is calculated in a similar manner to Net Debt, except that BXP’s Share of Debt and BXP’s Share of cash are utilized instead of the Company’s consolidated debt and cash in the calculation. The Company believes BXP’s Share of Net Debt to BXP’s Share of EBITDAre is useful to investors because it provides an alternative measure of the Company’s financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets. Furthermore, certain debt rating agencies, creditors and credit analysts monitor the Company’s Net Debt as part of their assessments of its business. The Company may utilize a considerable portion of its cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s) may not be solely controlled by the Company. The deduction of these items from consolidated debt in the calculation of Net Debt therefore should not be understood to mean that these items are available exclusively for debt reduction at any given time.
57
| Q3 2020 | ||||
| Definitions (continued) | |||||
Net Operating Income/(Loss) (NOI)
Net operating income/(loss) (NOI) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus (1) preferred dividends, net income attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, impairment losses, depreciation and amortization expense, losses from early extinguishments of debt and interest expense, less (2) development and management services revenue, direct reimbursements of payroll and related costs from management services contracts, income (loss) from unconsolidated joint ventures, gains (losses) on sales of real estate, gains (losses) from investments in securities and interest and other income (loss). In some cases, the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, straight-line ground rent expense adjustment and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.
The Company uses these measures internally as performance measures and believes they provide useful information to investors regarding the Company’s results of operations and financial condition because, when compared across periods, they reflect 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. 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. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. Presenting NOI – cash allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and ground rent expenses. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of the straight-lining of rent provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated at the property level on an unleveraged basis. Presenting NOI measures that exclude termination income provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.
Rental Obligations
Rental Obligations is defined as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from tenants under existing leases. These amounts exclude rent abatements.
Rental Revenue
Rental Revenue is equal to Total revenue, the most directly comparable GAAP financial measure, less development and management services revenue and direct reimbursements of payroll and related costs from management services contracts. The Company uses Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provides investors with information regarding our performance that is not immediately apparent from the comparable non-GAAP measures and allows investors to compare operating performance between periods. The Company also presents Rental Revenue (excluding termination income) because termination income can distort the results for any given period because it generally represents multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and does not reflect the core ongoing operating performance of the Company’s properties.
Same Properties
In the Company’s 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 the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment 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.” Pages 22 - 25 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”
58
| Q3 2020 | ||||
| Reconciliations | |||||
(unaudited and in thousands)
BXP’s Share of select items
| Three Months Ended | |||||||||||
| 30-Sep-20 | 30-Jun-20 | ||||||||||
| Revenue | $ | 693,268 | $ | 654,773 | |||||||
| Partners’ share of revenue from consolidated joint ventures (JVs) | (71,467) | (60,168) | |||||||||
| BXP’s share of revenue from unconsolidated JVs | 42,910 | 43,880 | |||||||||
| BXP’s Share of revenue | $ | 664,711 | $ | 638,485 | |||||||
| Straight-line rent | $ | 46,713 | $ | 17,024 | |||||||
| Partners’ share of straight-line rent from consolidated JVs | (7,982) | 1,592 | |||||||||
| BXP’s share of straight-line rent from unconsolidated JVs | 1,747 | 4,131 | |||||||||
| BXP’s Share of straight-line rent | $ | 40,478 | $ | 22,747 | |||||||
| Write-offs associated with accrued rent (all of which was included within straight-line rent) | $ | (4,098) | $ | (35,944) | |||||||
| Partners’ share of write-offs associated with accrued rent from consolidated JVs (all of which was included within straight-line rent) | 86 | 10,283 | |||||||||
| BXP’s share of write-offs associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent) | (1,919) | (664) | |||||||||
| BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) | $ | (5,931) | $ | (26,325) | |||||||
| Write-offs associated with accounts receivable (all of which was included within lease revenue) | $ | (3,373) | $ | (18,024) | |||||||
| Partners’ share of write-offs associated with accounts receivable (all of which was included within lease revenue) from consolidated JVs | 120 | 4,288 | |||||||||
| BXP’s share of write-offs associated with accounts receivable (all of which was included within lease revenue) from unconsolidated JVs | (537) | (971) | |||||||||
| BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) | $ | (3,790) | $ | (14,707) | |||||||
Fair value lease revenue 1 | $ | (662) | $ | 2,159 | |||||||
Partners’ share of fair value lease revenue from consolidated JVs 1 | 823 | (296) | |||||||||
BXP’s share of fair value lease revenue from unconsolidated JVs 1 | 818 | 685 | |||||||||
BXP’s Share of fair value lease revenue 2 | $ | 979 | $ | 2,548 | |||||||
| Lease termination income | $ | 3,406 | $ | 3,309 | |||||||
| Partners’ share of termination income from consolidated JVs | (556) | (321) | |||||||||
| BXP’s share of termination income from unconsolidated JVs | — | — | |||||||||
| BXP’s Share of termination income | $ | 2,850 | $ | 2,988 | |||||||
| Non-cash termination income adjustment (fair value lease amounts) | $ | 1,381 | $ | — | |||||||
| Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs | (553) | — | |||||||||
| BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs | $ | — | $ | — | |||||||
| BXP’s Share of non-cash termination income adjustment (fair value lease amounts) | $ | 828 | $ | — | |||||||
| Parking and other revenue | $ | 16,327 | $ | 13,946 | |||||||
| Partners’ share of parking and other revenue from consolidated JVs | (414) | (406) | |||||||||
| BXP’s share of parking and other revenue from unconsolidated JVs | $ | 1,678 | $ | 2,084 | |||||||
| BXP’s Share of parking and other revenue | $ | 17,591 | $ | 15,624 | |||||||
| Cash rent abatements and deferrals related to COVID-19 | $ | 17,127 | $ | 14,159 | |||||||
| Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs | (808) | (83) | |||||||||
| BXP’s share of cash rent abatements and deferrals from unconsolidated JVs related to COVID-19 | 1,895 | 2,475 | |||||||||
| BXP’s Share of cash rent abatements and deferrals related to COVID-19 | $ | 18,214 | $ | 16,551 | |||||||
59
| Q3 2020 | ||||
| Reconciliations (continued) | |||||
BXP’s Share of select items (continued)
| Three Months Ended | |||||||||||
| 30-Sep-20 | 30-Jun-20 | ||||||||||
| Hedge amortization | $ | 1,590 | $ | 1,590 | |||||||
| Partners’ share of hedge amortization from consolidated JVs | (144) | (144) | |||||||||
| BXP’s share of hedge amortization from unconsolidated JVs | — | — | |||||||||
| BXP’s Share of hedge amortization | $ | 1,446 | $ | 1,446 | |||||||
| Straight-line ground rent expense adjustment | $ | 897 | $ | 951 | |||||||
| Partners’ share of straight-line ground rent expense adjustment from consolidated JVs | — | — | |||||||||
| BXP’s share of straight-line ground rent expense adjustment from unconsolidated JVs | 43 | 41 | |||||||||
| BXP’s Share of straight-line ground rent expense adjustment | $ | 940 | $ | 992 | |||||||
| Depreciation and amortization | $ | 166,456 | $ | 178,188 | |||||||
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | (15,833) | (22,480) | |||||||||
| BXP’s share of depreciation and amortization from unconsolidated JVs | 20,413 | 21,012 | |||||||||
| BXP’s Share of depreciation and amortization | $ | 171,036 | $ | 176,720 | |||||||
Lease transaction costs that qualify as rent inducements 2 | $ | 3,966 | $ | 1,616 | |||||||
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 2 | (873) | (120) | |||||||||
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 2 | (128) | (187) | |||||||||
BXP’s Share of lease transaction costs that qualify as rent inducements 2 | $ | 2,965 | $ | 1,309 | |||||||
| 2nd generation tenant improvements and leasing commissions | $ | 67,075 | $ | 124,588 | |||||||
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs | (3,438) | (43,777) | |||||||||
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs | 4,189 | 2,213 | |||||||||
| BXP’s Share of 2nd generation tenant improvements and leasing commissions | $ | 67,826 | $ | 83,024 | |||||||
Maintenance capital expenditures 3 | $ | 22,003 | $ | 15,461 | |||||||
Partners’ share of maintenance capital expenditures from consolidated JVs 3 | (459) | (91) | |||||||||
BXP’s share of maintenance capital expenditures from unconsolidated JVs 3 | 178 | 876 | |||||||||
BXP’s Share of maintenance capital expenditures 3 | $ | 21,722 | $ | 16,246 | |||||||
| Interest expense | $ | 110,993 | $ | 107,142 | |||||||
| Partners’ share of interest expense from consolidated JVs | (10,760) | (10,738) | |||||||||
| BXP’s share of interest expense from unconsolidated JVs | 11,311 | 10,909 | |||||||||
| BXP’s Share of interest expense | $ | 111,544 | $ | 107,313 | |||||||
| Capitalized interest | $ | 13,463 | $ | 13,717 | |||||||
| Partners’ share of capitalized interest from consolidated JVs | (1,348) | (1,296) | |||||||||
| BXP’s share of capitalized interest from unconsolidated JVs | 1,140 | 1,284 | |||||||||
| BXP’s Share of capitalized interest | $ | 13,255 | $ | 13,705 | |||||||
| Amortization of financing costs | $ | 3,485 | $ | 3,428 | |||||||
| Partners’ share of amortization of financing costs from consolidated JVs | (382) | (382) | |||||||||
| BXP’s share of amortization of financing costs from unconsolidated JVs | 720 | 538 | |||||||||
| BXP’s Share of amortization of financing costs | $ | 3,823 | $ | 3,584 | |||||||
| Three Months Ended | |||||||||||
| 30-Sep-19 | |||||||||||
| Revenue | $ | 743,553 | |||||||||
| Partners’ share of revenue from consolidated joint ventures (JVs) | (75,714) | ||||||||||
| BXP’s share of revenue from unconsolidated JVs | 36,332 | ||||||||||
| BXP’s Share of revenue | $ | 704,171 | |||||||||
_____________
1Represents 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.
2Consists 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.
3Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
60
| Q3 2020 | ||||
| Reconciliations (continued) | |||||
for the three months ended September 30, 2020
(unaudited and dollars in thousands)
| Norges Joint Ventures | ||||||||||||||||||||
| Times Square Tower | ||||||||||||||||||||
| 601 Lexington Avenue / One Five Nine East 53rd Street | ||||||||||||||||||||
| CONSOLIDATED JOINT VENTURES | 767 Fifth Avenue | 100 Federal Street | Total Consolidated | |||||||||||||||||
| (The GM Building) | Atlantic Wharf Office | Joint Ventures | ||||||||||||||||||
| Revenue | ||||||||||||||||||||
Lease 1 | $ | 60,868 | $ | 86,916 | $ | 147,784 | ||||||||||||||
| Write-offs associated with accounts receivable | — | (267) | (267) | |||||||||||||||||
| Straight-line rent | 14,346 | 5,177 | 19,523 | |||||||||||||||||
| Write-offs associated with straight-line rent | — | (191) | (191) | |||||||||||||||||
| Fair value lease revenue | (2,180) | 109 | (2,071) | |||||||||||||||||
| Termination income | 1,389 | — | 1,389 | |||||||||||||||||
| Total lease revenue | 74,423 | 91,744 | 166,167 | |||||||||||||||||
| Parking and other | — | 919 | 919 | |||||||||||||||||
Total rental revenue 2 | 74,423 | 92,663 | 167,086 | |||||||||||||||||
| Expenses | ||||||||||||||||||||
| Operating | 30,104 | 34,993 | 65,097 | |||||||||||||||||
| Net Operating Income (NOI) | 44,319 | 57,670 | 101,989 | |||||||||||||||||
| Other income (expense) | ||||||||||||||||||||
| Interest and other income | 6 | 99 | 105 | |||||||||||||||||
| Interest expense | (21,394) | (4,899) | (26,293) | |||||||||||||||||
| Depreciation and amortization expense | (15,349) | (20,721) | (36,070) | |||||||||||||||||
| General and administrative expense | (5) | (35) | (40) | |||||||||||||||||
| Total other income (expense) | (36,742) | (25,556) | (62,298) | |||||||||||||||||
| Net income | $ | 7,577 | $ | 32,114 | $ | 39,691 | ||||||||||||||
| BXP’s nominal ownership percentage | 60.00% | 55.00% | ||||||||||||||||||
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 | $ | 17,054 | $ | 25,106 | $ | 42,160 | ||||||||||||||
| BXP’s share of NOI (after income allocation to private REIT shareholders) | $ | 27,265 | $ | 32,564 | $ | 59,829 | ||||||||||||||
Unearned portion of capitalized fees 4 | $ | 292 | $ | 368 | $ | 660 | ||||||||||||||
Partners’ share of select items 3 | ||||||||||||||||||||
| Partners’ share of write-offs associated with accounts receivable | $ | — | $ | 120 | $ | 120 | ||||||||||||||
| Partners’ share of write-offs associated with straight-line rent | $ | — | $ | 86 | $ | 86 | ||||||||||||||
| Partners’ share of parking and other revenue | $ | — | $ | 414 | $ | 414 | ||||||||||||||
| Partners’ share hedge amortization | $ | 144 | $ | — | $ | 144 | ||||||||||||||
| Partners’ share of amortization of financing costs | $ | 346 | $ | 36 | $ | 382 | ||||||||||||||
| Partners’ share of depreciation and amortization related to capitalized fees | $ | 275 | $ | 296 | $ | 571 | ||||||||||||||
| Partners’ share of capitalized interest | $ | — | $ | 1,348 | $ | 1,348 | ||||||||||||||
Partners’ share of non-cash termination income adjustment (fair value lease amounts) | $ | 553 | $ | — | $ | 553 | ||||||||||||||
Partners’ share of lease transaction costs that qualify as rent inducements | $ | 174 | $ | 699 | $ | 873 | ||||||||||||||
| Partners’ share of management and other fees | $ | 673 | $ | 845 | $ | 1,518 | ||||||||||||||
| Partners’ share of basis differential and other adjustments | $ | (18) | $ | (146) | $ | (164) | ||||||||||||||
Reconciliation of Partners’ share of EBITDAre 3 | ||||||||||||||||||||
| Partners’ NCI | $ | 2,104 | $ | 13,457 | $ | 15,561 | ||||||||||||||
| Add: | ||||||||||||||||||||
| Partners’ share of interest expense after BXP’s basis differential | 8,555 | 2,205 | 10,760 | |||||||||||||||||
Partners’ share of depreciation and amortization expense after BXP’s basis differential | 6,397 | 9,436 | 15,833 | |||||||||||||||||
Partners’ share of EBITDAre | $ | 17,056 | $ | 25,098 | $ | 42,154 | ||||||||||||||
61
| Q3 2020 | ||||
| Reconciliations (continued) | |||||
for the three months ended September 30, 2020
(unaudited and dollars in thousands)
| CONSOLIDATED JOINT VENTURES | ||||||||||||||||||||
| Norges Joint Ventures | ||||||||||||||||||||
| Times Square Tower | ||||||||||||||||||||
| 601 Lexington Avenue / One Five Nine East 53rd Street | ||||||||||||||||||||
| 767 Fifth Avenue | 100 Federal Street | Total Consolidated | ||||||||||||||||||
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 3 | (The GM Building) | Atlantic Wharf Office | Joint Ventures | |||||||||||||||||
Rental revenue 2 | $ | 29,769 | $ | 41,698 | $ | 71,467 | ||||||||||||||
| Less: Termination income | 556 | — | 556 | |||||||||||||||||
Rental revenue (excluding termination income) 2 | 29,213 | 41,698 | 70,911 | |||||||||||||||||
Less: Operating expenses (including partners’ share of management and other fees) | 12,715 | 16,592 | 29,307 | |||||||||||||||||
Income allocation to private REIT shareholders | — | — | — | |||||||||||||||||
NOI (excluding termination income and after income allocation to private REIT shareholders) | $ | 16,498 | $ | 25,106 | $ | 41,604 | ||||||||||||||
Rental revenue (excluding termination income) 2 | $ | 29,213 | $ | 41,698 | $ | 70,911 | ||||||||||||||
| Less: Straight-line rent | 5,738 | 2,244 | 7,982 | |||||||||||||||||
Fair value lease revenue | (872) | 49 | (823) | |||||||||||||||||
| Add: Lease transaction costs that qualify as rent inducements | 174 | 699 | 873 | |||||||||||||||||
| Subtotal | 24,521 | 40,104 | 64,625 | |||||||||||||||||
Less: Operating expenses (including partners’ share of management and other fees) | 12,715 | 16,592 | 29,307 | |||||||||||||||||
Income allocation to private REIT shareholders | — | — | — | |||||||||||||||||
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) | $ | 11,806 | $ | 23,512 | $ | 35,318 | ||||||||||||||
Reconciliation of Partners’ share of Revenue 3 | ||||||||||||||||||||
Rental revenue 2 | $ | 29,769 | $ | 41,698 | $ | 71,467 | ||||||||||||||
| Add: Development and management services revenue | — | — | — | |||||||||||||||||
| Revenue | $ | 29,769 | $ | 41,698 | $ | 71,467 | ||||||||||||||
_________
1Lease revenue includes recoveries from tenants and service income from tenants.
2See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
3 Amounts represent the partners’ share based on their respective ownership percentage.
4Capitalized 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.
62
| Q3 2020 | ||||
| Reconciliations (continued) | |||||
for the three months ended September 30, 2020
(unaudited and dollars in thousands)
UNCONSOLIDATED JOINT VENTURES1
| Market Square North | Metropolitan Square | 901 New York Avenue | Annapolis Junction | 500 North Capitol Street, N.W. | Colorado Center | Santa Monica Business Park | The Hub on Causeway | Gateway Commons | Other Joint Ventures 2 | Total Unconsolidated Joint Ventures | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease 3 | $ | 5,211 | $ | 4,939 | $ | 5,828 | $ | 1,912 | $ | 4,362 | $ | 20,189 | $ | 16,269 | $ | 7,267 | $ | 12,685 | $ | 1,663 | $ | 80,325 | ||||||||||||||||||||||||||||||||||||||||||||||
| Write-offs associated with accounts receivable | — | — | — | — | — | (1,075) | — | — | — | — | (1,075) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Straight-line rent | 171 | 2,005 | 587 | 38 | (82) | (199) | 226 | 1,526 | 254 | 3,079 | 7,605 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Write-offs associated with straight-line rent | — | — | — | — | — | (3,837) | — | — | — | — | (3,837) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair value lease revenue | 9 | 1,069 | — | 52 | — | 1,130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Termination income | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total lease revenue | 5,382 | 6,944 | 6,415 | 1,950 | 4,280 | 15,087 | 17,564 | 8,793 | 12,991 | 4,742 | 84,148 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Parking and other | 209 | 206 | 218 | — | 18 | 1,166 | 1,345 | (92) | 5 | 380 | 3,455 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total rental revenue 4 | 5,591 | 7,150 | 6,633 | 1,950 | 4,298 | 16,253 | 18,909 | 8,701 | 12,996 | 5,122 | 87,603 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Expenses | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Operating | 2,369 | 3,141 | 2,994 | 645 | 1,680 | 6,174 | 7,834 | 4,170 | 4,911 | 3,413 | 5 | 37,331 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net operating income | 3,222 | 4,009 | 3,639 | 1,305 | 2,618 | 10,079 | 11,075 | 4,531 | 8,085 | 1,709 | 50,272 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other income/(expense) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Development and management services revenue | 15 | 88 | — | — | — | — | — | — | 11 | — | 114 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest and other income | 1 | — | — | — | — | 1 | — | 1 | — | 4 | 7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Interest expense | (1,409) | (5,183) | (2,054) | (209) | (1,128) | (5,033) | (6,999) | (2,381) | — | (1,085) | (25,481) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation and amortization expense | (1,217) | (3,195) | (1,588) | (546) | (862) | (5,366) | (8,884) | (4,276) | (7,104) | (2,772) | (35,810) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General and administrative expense | — | (34) | (9) | — | (1) | (11) | (99) | (20) | (67) | — | (241) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gain on sale of real estate | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Total other income/(expense) | (2,610) | (8,324) | (3,651) | (755) | (1,991) | (10,409) | (15,982) | (6,676) | (7,160) | (3,853) | (61,411) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Net income/(loss) | $ | 612 | $ | (4,315) | $ | (12) | $ | 550 | $ | 627 | $ | (330) | $ | (4,907) | $ | (2,145) | $ | 925 | $ | (2,144) | $ | (11,139) | ||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s economic ownership percentage | 50 | % | 20 | % | 50 | % | 50 | % | 30 | % | 50 | % | 55 | % | 50 | % | 55 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of write-offs associated with accounts receivable | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 538 | $ | — | $ | — | $ | — | $ | — | $ | 538 | ||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of write-offs associated with straight-line rent | $ | — | $ | — | $ | — | $ | — | $ | — | $ | 1,919 | $ | — | $ | — | $ | — | $ | — | $ | 1,919 | ||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of parking and other revenue | $ | 105 | $ | 41 | $ | 109 | $ | — | $ | 5 | $ | 583 | $ | 740 | $ | (46) | $ | 3 | $ | 138 | $ | 1,678 | ||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of amortization of financing costs | $ | 11 | $ | 244 | $ | 22 | 6 | $ | 11 | $ | 4 | $ | 13 | $ | 72 | $ | 189 | $ | — | $ | 154 | $ | 720 | |||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of capitalized interest | $ | — | $ | — | $ | — | 6 | $ | — | $ | — | $ | — | $ | — | $ | 333 | $ | — | $ | 807 | $ | 1,140 | |||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of non-cash termination income adjustment (fair value lease amounts) | $ | — | $ | — | $ | — | 6 | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||||
| Income/(loss) from unconsolidated joint ventures | $ | 259 | $ | (872) | $ | (29) | 6 | $ | 271 | $ | 191 | $ | (1,213) | $ | (2,692) | $ | (1,106) | $ | (767) | $ | (915) | $ | (6,873) | |||||||||||||||||||||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of interest expense | 705 | 1,037 | 1,027 | 6 | 105 | 338 | 2,517 | 3,849 | 1,191 | — | 542 | 11,311 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of depreciation and amortization expense | 655 | 648 | 817 | 6 | 277 | 256 | 4,584 | 7 | 4,879 | 2,171 | 4,950 | 1,176 | 20,413 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of gain on sale of real estate | — | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of EBITDAre | $ | 1,619 | $ | 813 | $ | 1,815 | 6 | $ | 653 | $ | 785 | $ | 5,888 | $ | 6,036 | $ | 2,256 | $ | 4,183 | $ | 803 | $ | 24,851 | |||||||||||||||||||||||||||||||||||||||||||||
63
| Q3 2020 | ||||
| Reconciliations (continued) | |||||
| UNCONSOLIDATED JOINT VENTURES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of BXP’s share of Net Operating Income/(Loss) | Market Square North | Metropolitan Square | 901 New York Avenue | Annapolis Junction | 500 North Capitol Street, N.W. | Colorado Center | Santa Monica Business Park | The Hub on Causeway | Gateway Commons | Other Joint Ventures 2 | Total Unconsolidated Joint Ventures | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of rental revenue 4 | $ | 2,796 | $ | 1,430 | $ | 3,317 | 6 | $ | 975 | $ | 1,289 | $ | 8,980 | 7 | $ | 10,400 | $ | 4,351 | $ | 6,915 | $ | 2,425 | $ | 42,878 | ||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of operating expenses | 1,185 | 628 | 1,497 | 6 | 323 | 504 | 3,087 | 4,309 | 2,085 | 2,701 | 1,621 | 17,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of net operating income/(loss) | 1,611 | 802 | 1,820 | 6 | 652 | 785 | 5,893 | 6,091 | 2,266 | 4,214 | 804 | 24,938 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of termination income | — | — | — | 6 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of net operating income/(loss) (excluding termination income) | 1,611 | 802 | 1,820 | 6 | 652 | 785 | 5,893 | 6,091 | 2,266 | 4,214 | 804 | 24,938 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Less: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of straight-line rent | 86 | 401 | 294 | 6 | 19 | (25) | (1,602) | 7 | 124 | 763 | 148 | 1,539 | 1,747 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of fair value lease revenue | — | — | — | 6 | — | — | 442 | 7 | 588 | — | (212) | — | 818 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of straight-line ground rent expense adjustment | — | — | — | 6 | — | — | — | — | — | — | 43 | 43 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of lease transaction costs that qualify as rent inducements | 23 | 187 | — | 6 | — | — | — | — | — | (338) | — | (128) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of net operating income/(loss) - cash (excluding termination income) | $ | 1,548 | $ | 588 | $ | 1,526 | 6 | $ | 633 | $ | 810 | $ | 7,053 | 7 | $ | 5,379 | $ | 1,503 | $ | 3,940 | $ | (692) | $ | 22,288 | ||||||||||||||||||||||||||||||||||||||||||||
| Reconciliation of BXP’s share of Revenue | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of rental revenue 5 | $ | 2,796 | $ | 1,430 | $ | 3,317 | 6 | $ | 975 | $ | 1,289 | $ | 8,980 | 7 | $ | 10,400 | $ | 4,351 | $ | 6,915 | $ | 2,425 | $ | 42,878 | ||||||||||||||||||||||||||||||||||||||||||||
| Add: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BXP’s share of development and management services revenue | 8 | 18 | — | 6 | — | — | — | — | — | 6 | — | 32 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| BXP’s share of revenue | $ | 2,804 | $ | 1,448 | $ | 3,317 | 6 | $ | 975 | $ | 1,289 | $ | 8,980 | 7 | $ | 10,400 | $ | 4,351 | $ | 6,921 | $ | 2,425 | $ | 42,910 | ||||||||||||||||||||||||||||||||||||||||||||
_____________
1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 59.
2 Includes 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility, 3 Hudson Boulevard, 540 Madison Avenue, Platform 16, and Beach Cities Media Center.
3 Lease revenue includes recoveries from tenants and service income from tenants.
4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
5 Includes approximately $80 of straight-line ground rent expense.
6 Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.
7 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.
64
| Q3 2020 | ||||
| Consolidated Income Statement - prior year | |||||
(unaudited and in thousands, except per share amounts)
| Three Months Ended | ||||||||
| 30-Sep-19 | ||||||||
| Revenue | ||||||||
| Lease | $ | 692,225 | ||||||
| Parking and other | 25,582 | |||||||
| Hotel revenue | 13,014 | |||||||
| Development and management services | 10,303 | |||||||
| Direct reimbursements of payroll and related costs from management services contracts | 2,429 | |||||||
| Total revenue | 743,553 | |||||||
| Expenses | ||||||||
| Operating | 129,852 | |||||||
| Real estate taxes | 135,419 | |||||||
| Demolition costs | 332 | |||||||
| Hotel | 8,743 | |||||||
| General and administrative | 31,147 | |||||||
| Payroll and related costs from management services contracts | 2,429 | |||||||
| Transaction costs | 538 | |||||||
| Depreciation and amortization | 165,862 | |||||||
| Total expenses | 474,322 | |||||||
| Other income (expense) | ||||||||
| Loss from unconsolidated joint ventures | (649) | |||||||
| Losses on sales of real estate | (15) | |||||||
| Gains from investments in securities | 106 | |||||||
| Interest and other income | 7,178 | |||||||
| Losses from early extinguishments of debt | (28,010) | |||||||
| Interest expense | (106,471) | |||||||
| Net income | 141,370 | |||||||
| Net income attributable to noncontrolling interests | ||||||||
| Noncontrolling interest in property partnerships | (18,470) | |||||||
| Noncontrolling interest - common units of the Operating Partnership | (12,504) | |||||||
| Net income attributable to Boston Properties, Inc. | 110,396 | |||||||
| Preferred dividends | (2,625) | |||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 107,771 | ||||||
| INCOME PER SHARE OF COMMON STOCK (EPS) | ||||||||
| Net income attributable to Boston Properties, Inc. per share - basic | $ | 0.70 | ||||||
| Net income attributable to Boston Properties, Inc. per share - diluted | $ | 0.70 | ||||||
65
| Q3 2020 | ||||
Funds from operations (FFO) 1 - prior year | |||||
(unaudited and dollars in thousands, except per share amounts)
| Three Months Ended | ||||||||
| 30-Sep-19 | ||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 107,771 | ||||||
| Add: | ||||||||
| Preferred dividends | 2,625 | |||||||
| Noncontrolling interest - common units of the Operating Partnership | 12,504 | |||||||
| Noncontrolling interests in property partnerships | 18,470 | |||||||
| Net income | 141,370 | |||||||
| Add: | ||||||||
| Depreciation and amortization expense | 165,862 | |||||||
| Noncontrolling interests in property partnerships' share of depreciation and amortization | (17,402) | |||||||
| BXP's share of depreciation and amortization from unconsolidated joint ventures | 13,745 | |||||||
| Corporate-related depreciation and amortization | (411) | |||||||
| Less: | ||||||||
| Gain on sale of real estate included within income (loss) from unconsolidated joint ventures | (487) | |||||||
| Gains (losses) on sales of real estate | (15) | |||||||
| Noncontrolling interests in property partnerships | 18,470 | |||||||
| Preferred dividends | 2,625 | |||||||
| FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) | 282,571 | |||||||
| Less: | ||||||||
| Noncontrolling interest - common units of the Operating Partnership’s share of FFO | 28,940 | |||||||
| FFO attributable to Boston Properties, Inc. common shareholders | $ | 253,631 | ||||||
| Boston Properties, Inc.’s percentage share of Basic FFO | 89.76 | % | ||||||
| Noncontrolling interest’s - common unitholders percentage share of Basic FFO | 10.24 | % | ||||||
| Basic FFO per share | $ | 1.64 | ||||||
| Weighted average shares outstanding - basic | 154,577 | |||||||
| Diluted FFO per share | $ | 1.64 | ||||||
| Weighted average shares outstanding - diluted | 154,820 | |||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
66
| Q3 2020 | ||||
Funds available for distributions (FAD) 1 - prior year | |||||
(unaudited and in thousands)
| Three Months Ended | ||||||||
| 30-Sep-19 | ||||||||
| Net income attributable to Boston Properties, Inc. common shareholders | $ | 107,771 | ||||||
| Add: | ||||||||
| Preferred dividends | 2,625 | |||||||
| Noncontrolling interest - common units of the Operating Partnership | 12,504 | |||||||
| Noncontrolling interests in property partnerships | 18,470 | |||||||
| Net income | 141,370 | |||||||
| Add: | ||||||||
| Depreciation and amortization expense | 165,862 | |||||||
| Noncontrolling interests in property partnerships’ share of depreciation and amortization | (17,402) | |||||||
| BXP’s share of depreciation and amortization from unconsolidated joint ventures | 13,745 | |||||||
| Corporate-related depreciation and amortization | (411) | |||||||
| Less: | ||||||||
| Gain on sale of real estate included within income (loss) from unconsolidated joint ventures | (487) | |||||||
| Gains (losses) on sales of real estate | (15) | |||||||
| Noncontrolling interests in property partnerships | 18,470 | |||||||
| Preferred dividends | 2,625 | |||||||
| Basic FFO | 282,571 | |||||||
| Add: | ||||||||
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 2 | 2,041 | |||||||
BXP’s Share of hedge amortization 1 | 1,435 | |||||||
Straight-line ground rent expense adjustment 3 | 1,019 | |||||||
| Stock-based compensation | 7,809 | |||||||
| Non-real estate depreciation | 411 | |||||||
| Unearned portion of capitalized fees from consolidated joint ventures | 836 | |||||||
| Less: | ||||||||
BXP’s Share of straight-line rent 1 | (1,904) | |||||||
BXP’s Share of fair value lease revenue 1, 4 | 4,467 | |||||||
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 | 70,199 | |||||||
BXP’s Share of maintenance capital expenditures 1, 5 | 31,263 | |||||||
| Hotel improvements, equipment upgrades and replacements | 177 | |||||||
| Funds available for distribution to common shareholders and common unitholders (FAD) (A) | 191,920 | |||||||
| Distributions to common shareholders and unitholders (excluding any special distributions) (B) | 164,043 | |||||||
| FAD Payout Ratio1 (B÷A) | 85.47 | % | ||||||
_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.
2Consists 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.
3Includes 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 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease.
4Represents 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.
5Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
67