bxp-20210727
0001037540false0001043121false00010375402021-07-272021-07-270001037540bxp:BostonPropertiesLimitedPartnershipMember2021-07-272021-07-270001037540us-gaap:CommonStockMember2021-07-272021-07-27

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): July 27, 2021
BOSTON PROPERTIES, INC.
BOSTON PROPERTIES LIMITED PARTNERSHIP
(Exact Name of Registrants As Specified in its Charter)
Boston Properties, Inc.Delaware
1-13087
04-2473675
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)(IRS Employer
Identification No.)
Boston Properties Limited PartnershipDelaware
0-50209
04-3372948
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)(IRS Employer
Identification No.)
800 Boylston Street, Suite 1900, Boston, Massachusetts 02199
(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):
    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))





Securities registered pursuant to Section 12(b) of the Act:
RegistrantTitle of each classTrading Symbol(s)Name of each exchange on which registered
Boston Properties, Inc.Common Stock, par value $0.01 per shareBXPNew York Stock Exchange

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 July 27, 2021, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the second quarter of 2021. 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.SCHInline XBRL Taxonomy Extension Schema Document.
*101.LABInline XBRL Taxonomy Extension Label Linkbase Document.
*101.PREInline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEFInline XBRL Taxonomy Extension Definition Linkbase Document.
*104Cover 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: July 27, 2021




Document


                                                    Exhibit 99.1

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Supplemental Operating and Financial Data
for the Quarter Ended June 30, 2021



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. Including properties owned by joint ventures, the Company’s complete portfolio totals 51.5 million square feet and 197 properties, including nine properties under construction/redevelopment, and it consists of 178 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 nine 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 “anticipates,” “believes,” “budgeted,” “could,” “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 plans, expectations, projections and assumptions about 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; the speed, effectiveness and distribution of vaccines, whether new or existing actions or measures continue to 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; and 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. 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. 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, except as may be required by law.


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 53.

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 57.




GENERAL INFORMATION
Corporate HeadquartersTrading SymbolInvestor RelationsInquiries
800 Boylston StreetBXPBoston Properties, Inc.Inquiries should be directed to
Suite 1900800 Boylston Street, Suite 1900Sara Buda
Boston, MA 02199Stock Exchange ListingBoston, MA 02199Vice President, Investor Relations
www.bxp.comNew York Stock Exchangeinvestors.bxp.comat 617.236.3429 or
(t) 617.236.3300investorrelations@bxp.comsbuda@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: Colorado Center, Santa Monica, CA)




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Q2 2021
Table of contents
Page
OVERVIEW
Company Profile
Guidance
FINANCIAL INFORMATION
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


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Q2 2021
Company profile
SNAPSHOT
(as of June 30, 2021)
Fiscal Year-EndDecember 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment)197
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment)51.5 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, 2
173.7 million
Closing Price, at the end of the quarter$114.59 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield3.4%
Consolidated Market Capitalization 2
$32.4 billion
BXP’s Share of Market Capitalization 2, 3
$32.4 billion
Senior Debt RatingsBBB+ (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, and the expected addition of Seattle in the third quarter of 2021;
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 DirectorsManagement
Joel I. KleinChairman of the BoardOwen D. ThomasChief Executive Officer
Owen D. ThomasChief Executive OfficerDouglas T. LindePresident
Douglas T. LindePresidentRaymond A. RitcheySenior Executive Vice President
Kelly A. AyotteChair of Compensation CommitteeMichael E. LaBelleExecutive Vice President, Chief Financial Officer and Treasurer
Bruce W. DuncanBryan J. KoopExecutive Vice President, Boston Region
Karen E. DykstraJohn F. PowersExecutive Vice President, New York Region
Carol B. EinigerRobert E. PesterExecutive Vice President, San Francisco Region
Diane J. HoskinsChair of Sustainability CommitteeJonathan D. LangeSenior Vice President, Los Angeles Region
Matthew J. LustigChair of Nominating & Corporate Governance CommitteePeter V. OtteniSenior Vice President, Co-Head of the Washington, DC Region
John J. StromanSenior Vice President, Co-Head of the Washington, DC Region
David A. TwardockChair of Audit CommitteeFrank D. BurtSenior Vice President and Chief Legal Officer
William H. Walton, IIIDonna D. GarescheSenior Vice President and Chief Human Resources Officer
Michael R. WalshSenior Vice President and Chief Accounting Officer
James J. Whalen
Senior Vice President and Chief Information & Technology Officer

____________________
1Common units and LTIP units are units of limited partnership interest in Boston Properties Limited Partnership, the entity through which the Company conducts substantially all of its business.
2For additional detail, see page 26.
3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

1

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Q2 2021
Guidance
The Company’s guidance for the third quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on July 27, 2021 and those referenced during the Company’s conference call scheduled for July 28, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatement of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains and losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 55. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.
Third Quarter 2021
LowHigh
Projected EPS (diluted)$1.28 — $1.30 
Add:
Projected Company share of real estate depreciation and amortization1.05 — 1.05 
Projected Company share of (gains)/losses on sales of real estate(0.65)— (0.65)
Projected FFO per share (diluted)$1.68 — $1.70 




2

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Q2 2021
Financial highlights
(unaudited and in thousands, except ratios and per share amounts)
Three Months Ended
30-Jun-2131-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $91,624 
Net income attributable to Boston Properties, Inc. per share - diluted$0.71 $0.59 
FFO attributable to Boston Properties, Inc. common shareholders 1
$268,642 $243,803 
Diluted FFO per share 1
$1.72 $1.56 
Dividends per common share$0.98 $0.98 
Funds available for distribution to common shareholders and common unitholders (FAD) 2
$178,341 $181,922 
Selected items:
Revenue$713,807 $713,695 
Recoveries from tenants$100,433 $105,866 
Service income from tenants$1,516 $1,037 
BXP’s Share of revenue 3
$683,273 $680,822 
BXP’s Share of straight-line rent 3, 4
$30,855 $13,601 
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3
$(582)$(693)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3
$(319)$200 
BXP’s Share of fair value lease revenue 3, 5
$1,193 $1,206 
BXP’s Share of termination income 3
$6,067 $4,275 
Ground rent expense$3,261 $3,449 
Capitalized interest$13,014 $12,032 
Capitalized wages$3,459 $3,307 
Income (loss) from unconsolidated joint ventures$(1,373)$5,225 
BXP’s share of FFO from unconsolidated joint ventures 6
$13,977 $13,380 
Net income attributable to noncontrolling interests in property partnerships$17,164 $16,467 
FFO attributable to noncontrolling interests in property partnerships 7
$34,277 $32,924 
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)$2,207 $3,156 
Below-market rents (included within Other Liabilities)$26,271 $25,539 
Accrued rental income liability (included within Other Liabilities)$136,085 $138,761 
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8
3.84 3.95 
Interest Coverage Ratio (including capitalized interest) 8
3.37 3.52 
Fixed Charge Coverage Ratio 8
2.83 2.75 
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 9
7.44 7.62 
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10
8.9 %(5.6)%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10
7.5 %(3.9)%
FAD Payout Ratio 2
95.47 %93.58 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 64.6 %63.4 %
Occupancy of In-Service Properties88.6 %88.7 %
Capitalization:
Consolidated Debt$12,536,065 $12,536,264 
BXP’s Share of Debt 11
$12,534,659 $12,508,876 
Consolidated Market Capitalization$32,436,223 $30,120,367 
Consolidated Debt/Consolidated Market Capitalization38.65 %41.62 %
BXP’s Share of Market Capitalization 11
$32,434,817 $30,092,979 
BXP’s Share of Debt/BXP’s Share of Market Capitalization 11
38.65 %41.57 %
_____________
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 53.
4For the three months ended March 31, 2021, includes the straight-line impact of approximately $9,354 related to deferred revenue from a tenant.
5Represents 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.
6For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.
7For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.
8For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see page 30.
9For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see page 29.
10For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see pages 10, 63 and 64.
11For a quantitative reconciliation for June 30, 2021, see page 26.
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Q2 2021
Consolidated Balance Sheets
(unaudited and in thousands)
30-Jun-2131-Mar-21
ASSETS
Real estate $22,012,095 $21,941,536 
Construction in progress 908,061 794,039 
Land held for future development 497,019 421,349 
Right of use assets - finance leases 237,765 237,017 
Right of use assets - operating leases170,331 144,143 
Less accumulated depreciation(5,752,818)(5,665,061)
Total real estate18,072,453 17,873,023 
Cash and cash equivalents557,307 697,369 
Cash held in escrows 1
79,973 251,814 
Investments in securities41,476 39,002 
Tenant and other receivables, net58,624 51,271 
Related party note receivable, net77,872 77,640 
Notes receivable, net19,087 18,891 
Accrued rental income, net1,172,411 1,145,066 
Deferred charges, net627,338 622,649 
Prepaid expenses and other assets46,946 129,102 
Investments in unconsolidated joint ventures1,305,589 1,307,725 
Total assets$22,059,076 $22,213,552 
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net$2,901,709 $2,904,672 
Unsecured senior notes, net9,634,356 9,631,592 
Unsecured line of credit— — 
Lease liabilities- finance leases 243,381 239,361 
Lease liabilities - operating leases226,594 200,383 
Accounts payable and accrued expenses305,969 260,875 
Dividends and distributions payable169,718 171,003 
Accrued interest payable107,386 76,675 
Preferred stock redemption liability 1
— 200,000 
Other liabilities 370,990 399,965 
Total liabilities13,960,103 14,084,526 
Commitments and contingencies— — 
Redeemable deferred stock units8,980 7,679 
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, No shares issued and outstanding at June 30, 2021 and March 31, 20211
— — 
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,214,859 and 156,153,100 issued and 156,135,959 and 156,074,200 outstanding at June 30, 2021 and March 31, 2021, respectively
1,561 1,561 
Additional paid-in capital6,405,916 6,392,923 
Dividends in excess of earnings(612,247)(570,982)
Treasury common stock at cost, 78,900 shares at June 30, 2021 and March 31, 2021
(2,722)(2,722)
Accumulated other comprehensive loss(43,166)(45,139)
Total stockholders’ equity attributable to Boston Properties, Inc.5,749,342 5,775,641 
Noncontrolling interests:
Common units of the Operating Partnership615,308 620,106 
Property partnerships1,725,343 1,725,600 
Total equity8,089,993 8,121,347 
Total liabilities and equity$22,059,076 $22,213,552 
_____________
1On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.
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Q2 2021
Consolidated Income Statements
(unaudited and in thousands, except per share amounts)
Three Months Ended
30-Jun-2131-Mar-21
Revenue
Lease$684,025 $685,817 
Parking and other17,864 14,494 
Insurance proceeds 1
418 2,444 
Hotel revenue1,561 632 
Development and management services 7,284 6,803 
Direct reimbursements of payroll and related costs from management services contracts2,655 3,505 
Total revenue713,807 713,695 
Expenses
Operating117,769 118,516 
Real estate taxes130,440 136,395 
Demolition costs92 18 
Restoration expenses related to insurance claim 1
402 2,460 
Hotel operating1,996 2,051 
General and administrative 2
38,405 44,959 
Payroll and related costs from management services contracts2,655 3,505 
Transaction costs751 331 
Depreciation and amortization183,838 176,565 
Total expenses476,348 484,800 
Other income (expense)
Income (loss) from unconsolidated joint ventures (1,373)5,225 
Gains on sales of real estate7,756 — 
Gains from investments in securities 2
2,275 1,659 
Interest and other income (loss)1,452 1,168 
Losses from early extinguishments of debt— (898)
Interest expense(106,319)(107,902)
Net income141,250 128,147 
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships(17,164)(16,467)
Noncontrolling interest - common units of the Operating Partnership 3
(12,383)(11,084)
Net income attributable to Boston Properties, Inc.111,703 100,596 
Preferred dividends 4
— (2,560)
Preferred stock redemption charge 4
— (6,412)
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $91,624 
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic$0.72 $0.59 
Net income attributable to Boston Properties, Inc. per share - diluted$0.71 $0.59 







_____________
1 Amounts relate to damage at one of the Company’s properties in New York City due to a water main break.
2General and administrative expense includes $2.3 million and $1.7 million and Gains from investments in securities include $2.3 million and $1.7 million for the three months ended June 30, 2021 and March 31, 2021, respectively, related to the Company’s deferred compensation plan.
3For additional detail, see page 6.
4On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.
5

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Q2 2021
Funds from operations (FFO) 1
(unaudited and dollars in thousands, except per share amounts)
Three Months Ended
30-Jun-2131-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $91,624 
Add:
Preferred stock redemption charge— 6,412 
Preferred dividends— 2,560 
Noncontrolling interest - common units of the Operating Partnership12,383 11,084 
Noncontrolling interests in property partnerships17,164 16,467 
Net income141,250 128,147 
Add:
Depreciation and amortization expense183,838 176,565 
Noncontrolling interests in property partnerships' share of depreciation and amortization 2
(17,113)(16,457)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3
15,350 18,412 
Corporate-related depreciation and amortization(444)(440)
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures— 10,257 
Gains on sales of real estate7,756 — 
Noncontrolling interests in property partnerships17,164 16,467 
Preferred dividends— 2,560 
Preferred stock redemption charge— 6,412 
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)297,961 270,531 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO29,319 26,728 
FFO attributable to Boston Properties, Inc. common shareholders$268,642 $243,803 
Boston Properties, Inc.’s percentage share of Basic FFO 90.16 %90.12 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO9.84 %9.88 %
Basic FFO per share$1.72 $1.56 
Weighted average shares outstanding - basic156,107 155,928 
Diluted FFO per share$1.72 $1.56 
Weighted average shares outstanding - diluted156,519 156,099 

RECONCILIATION TO DILUTED FFO
Three Months Ended
30-Jun-2131-Mar-21
Basic FFO$297,961 $270,531 
Add:
Effect of dilutive securities - stock-based compensation— — 
Diluted FFO297,961 270,531 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO29,259 26,693 
Boston Properties, Inc.’s share of Diluted FFO$268,702 $243,838 

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO
Three Months Ended
30-Jun-2131-Mar-21
Shares/units for Basic FFO173,150 173,017 
Add:
Effect of dilutive securities - stock-based compensation (shares/units)412 171 
Shares/units for Diluted FFO173,562 173,188 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)17,043 17,089 
Boston Properties, Inc.’s share of shares/units for Diluted FFO156,519 156,099 
Boston Properties, Inc.’s percentage share of Diluted FFO90.18 %90.13 %

_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
2For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.
3For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.
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Q2 2021
Funds available for distributions (FAD) 1
(dollars in thousands)
Three Months Ended
30-Jun-2131-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $91,624 
Add:
Preferred stock redemption charge— 6,412 
Preferred dividends— 2,560 
Noncontrolling interest - common units of the Operating Partnership12,383 11,084 
Noncontrolling interests in property partnerships17,164 16,467 
Net income141,250 128,147 
Add:
Depreciation and amortization expense183,838 176,565 
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2
(17,113)(16,457)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3
15,350 18,412 
Corporate-related depreciation and amortization(444)(440)
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures— 10,257 
Gains on sales of real estate7,756 — 
Noncontrolling interests in property partnerships17,164 16,467 
Preferred dividends— 2,560 
Preferred stock redemption charge— 6,412 
Basic FFO297,961 270,531 
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4
(132)3,026 
BXP’s Share of hedge amortization 1
1,446 1,446 
BXP’s Share of straight-line ground rent expense adjustment 1, 5
698 1,166 
Stock-based compensation13,993 19,806 
Non-real estate depreciation444 440 
Unearned portion of capitalized fees from consolidated joint ventures 6
603 311 
Non-cash losses from early extinguishments of debt— 898 
Preferred stock redemption charge— 6,412 
Less:
BXP’s Share of straight-line rent 1
30,855 13,601 
BXP’s Share of fair value lease revenue 1, 7
1,193 1,206 
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1
— — 
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1
82,476 77,681 
BXP’s Share of maintenance capital expenditures 1, 8
22,145 29,595 
Hotel improvements, equipment upgrades and replacements31 
Funds available for distribution to common shareholders and common unitholders (FAD) (A)
$178,341 $181,922 
Distributions to common shareholders and unitholders (excluding any special distributions) (B)
$170,266 $170,240 
FAD Payout Ratio1 (B÷A)
95.47 %93.58 %



_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
2For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.
3For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.
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 59 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 capital expenditures that are planned at the time of acquisition or capital expenditures incurred in connection with repositioning activities.

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Q2 2021
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-Jun-2130-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $266,525 
Preferred dividends— 2,625 
Net income attributable to Boston Properties, Inc.111,703 269,150 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership12,383 30,197 
Noncontrolling interest in property partnerships17,164 (767)
Net income141,250 298,580 
Add:
Interest expense106,319 107,142 
Depreciation and amortization expense183,838 178,188 
Transaction costs751 332 
Payroll and related costs from management services contracts2,655 2,484 
General and administrative expense38,405 37,743 
Less:
Interest and other income (loss)1,452 1,305 
Gains from investments in securities2,275 4,552 
Gains on sales of real estate7,756 203,767 
Income (loss) from unconsolidated joint ventures(1,373)1,832 
Direct reimbursements of payroll and related costs from management services contracts2,655 2,484 
Development and management services revenue 7,284 8,125 
Net Operating Income (NOI)453,169 402,404 
Add:
BXP’s share of NOI from unconsolidated joint ventures 1
25,417 27,911 
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2
46,287 32,427 
BXP’s Share of NOI 432,299 397,888 
Less:
Termination income5,355 3,309 
BXP’s share of termination income from unconsolidated joint ventures 1
709 — 
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2
(3)321 
BXP’s Share of NOI (excluding termination income) $426,232 $394,900 
Net Operating Income (NOI)$453,169 $402,404 
Less:
Termination income5,355 3,309 
NOI from non Same Properties (excluding termination income) 3
7,268 6,624 
Same Property NOI (excluding termination income)440,546 392,471 
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2
46,290 32,106 
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
1,463 (1,150)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1
24,708 27,911 
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3
592 1,445 
BXP’s Share of Same Property NOI (excluding termination income)$419,835 $385,681 

_____________
1For a quantitative reconciliation for the three months ended June 30, 2021, see page 62.
2For a quantitative reconciliation for the three months ended June 30, 2021, see pages 59-60.
3Pages 20-23 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 June 30, 2021 and therefore are no longer a part of the Company’s property portfolio.
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Q2 2021
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-Jun-2130-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders$111,703 $266,525 
Preferred dividends— 2,625 
Net income attributable to Boston Properties, Inc.111,703 269,150 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership12,383 30,197 
Noncontrolling interest in property partnerships17,164 (767)
Net income141,250 298,580 
Add:
Interest expense106,319 107,142 
Depreciation and amortization expense183,838 178,188 
Transaction costs751 332 
Payroll and related costs from management services contracts2,655 2,484 
General and administrative expense38,405 37,743 
Less:
Interest and other income (loss)1,452 1,305 
Gains from investments in securities2,275 4,552 
Gains on sales of real estate7,756 203,767 
Income (loss) from unconsolidated joint ventures(1,373)1,832 
Direct reimbursements of payroll and related costs from management services contracts2,655 2,484 
Development and management services revenue 7,284 8,125 
Net Operating Income (NOI)453,169 402,404 
Less:
Straight-line rent31,267 17,024 
Fair value lease revenue731 2,159 
Termination income5,355 3,309 
Add:
Straight-line ground rent expense adjustment 1
567 799 
Lease transaction costs that qualify as rent inducements 2
826 1,616 
NOI - cash (excluding termination income)417,209 382,327 
Less:
NOI - cash from non Same Properties (excluding termination income) 3
5,444 9,324 
Same Property NOI - cash (excluding termination income)411,765 373,003 
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4
43,833 33,522 
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) 3
1,023 (166)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5
21,477 22,949 
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3
781 (76)
BXP’s Share of Same Property NOI - cash (excluding termination income)$389,651 $362,340 

_____________
1In 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 $(103) and $152 for the three months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the Company has remaining lease payments aggregating approximately $25.6 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.
2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 7.
3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to June 30, 2021 and therefore are no longer a part of the Company’s property portfolio.
4For a quantitative reconciliation for the three months ended June 30, 2021, see page 60.
5For a quantitative reconciliation for the three months ended June 30, 2021, see page 62.
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Q2 2021
Same property net operating income (NOI) by reportable segment
(dollars in thousands)
Office 1
Hotel & Residential
Three Months Ended$%Three Months Ended$%
30-Jun-2130-Jun-20ChangeChange30-Jun-2130-Jun-20ChangeChange
Rental Revenue 2
$679,570 $621,857 $10,634 $9,501 
Less: Termination income5,355 3,264 — — 
Rental revenue (excluding termination income) 2
674,215 618,593 $55,622 9.0 %10,634 9,501 $1,133 11.9 %
Less: Operating expenses and real estate taxes237,923 229,685 8,238 3.6 %6,380 5,938 442 7.4 %
NOI (excluding termination income) 2, 3
$436,292 $388,908 $47,384 12.2 %$4,254 $3,563 $691 19.4 %
Rental revenue (excluding termination income) 2
$674,215 $618,593 $55,622 9.0 %$10,634 $9,501 $1,133 11.9 %
Less: Straight-line rent and fair value lease revenue30,207 21,955 8,252 37.6 %20 (76)96 126.3 %
Add: Lease transaction costs that qualify as rent inducements 4
879 1,612 (733)(45.5)%— — — — %
Subtotal644,887 598,250 46,637 7.8 %10,614 9,577 1,037 10.8 %
Less: Operating expenses and real estate taxes237,923 229,685 8,238 3.6 %6,380 5,938 442 7.4 %
Add: Straight-line ground rent expense 5
567 799 (232)(29.0)%— — — — %
NOI - cash (excluding termination income) 2, 3
$407,531 $369,364 $38,167 10.3 %$4,234 $3,639 $595 16.4 %
Consolidated Total 1 (A)
BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended$%Three Months Ended$%
30-Jun-2130-Jun-20ChangeChange30-Jun-2130-Jun-20ChangeChange
Rental Revenue 2
$690,204 $631,358 $39,638 $40,588 
Less: Termination income5,355 3,264 709 — 
Rental revenue (excluding termination income) 2
684,849 628,094 $56,755 9.0 %38,929 40,588 $(1,659)(4.1)%
Less: Operating expenses and real estate taxes244,303 235,623 8,680 3.7 %14,813 14,122 691 4.9 %
NOI (excluding termination income) 2, 3
$440,546 $392,471 $48,075 12.2 %$24,116 $26,466 $(2,350)(8.9)%
Rental revenue (excluding termination income) 2
$684,849 $628,094 $56,755 9.0 %$38,929 $40,588 $(1,659)(4.1)%
Less: Straight-line rent and fair value lease revenue30,227 21,879 8,348 38.2 %2,716 3,254 (538)(16.5)%
Add: Lease transaction costs that qualify as rent inducements 4
879 1,612 (733)(45.5)%(704)(187)(517)276.5 %
Subtotal$655,501 $607,827 47,674 7.8 %35,509 37,147 (1,638)(4.4)%
Less: Operating expenses and real estate taxes244,303 235,623 8,680 3.7 %14,813 14,122 691 4.9 %
Add: Straight-line ground rent expense 5
567 799 (232)(29.0)%— — — — %
NOI - cash (excluding termination income) 2, 3
$411,765 $373,003 $38,762 10.4 %$20,696 $23,025 $(2,329)(10.1)%
Partners’ share of Consolidated Joint Ventures (C)
BXP’s Share 3, 6, 7, 8
Three Months Ended$%Three Months Ended$%
30-Jun-2130-Jun-20ChangeChange30-Jun-2130-Jun-20ChangeChange
Rental Revenue 2
$71,666 $61,192 $658,176 $610,754 
Less: Termination income(3)321 6,067 2,943 
Rental revenue (excluding termination income) 2
71,669 60,871 $10,798 17.7 %652,109 607,811 $44,298 7.3 %
Less: Operating expenses and real estate taxes26,842 27,615 (773)(2.8)%232,274 222,130 10,144 4.6 %
NOI (excluding termination income) 2, 3
$44,827 $33,256 $11,571 34.8 %$419,835 $385,681 $34,154 8.9 %
Rental revenue (excluding termination income) 2
$71,669 $60,871 $10,798 17.7 %$652,109 $607,811 $44,298 7.3 %
Less: Straight-line rent and fair value lease revenue2,344 (312)2,656 851.3 %30,599 25,445 5,154 20.3 %
Add: Lease transaction costs that qualify as rent inducements 4
327 120 207 172.5 %(152)1,305 (1,457)(111.6)%
Subtotal69,652 61,303 8,349 13.6 %621,358 583,671 37,687 6.5 %
Less: Operating expenses and real estate taxes26,842 27,615 (773)(2.8)%232,274 222,130 10,144 4.6 %
Add: Straight-line ground rent expense 5
— — — — %567 799 (232)(29.0)%
NOI - cash (excluding termination income) 2, 3
$42,810 $33,688 $9,122 27.1 %$389,651 $362,340 $27,311 7.5 %
___________________
1Includes 100% share of consolidated joint ventures that are a Same Property.
2See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
3For 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.
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 Company’s FAD calculation on page 7.
5Excludes the straight-line impact of approximately $(103) and $152 for the three months ended June 30, 2021 and 2020, 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.
10

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Q2 2021
Same property net operating income (NOI) by reportable segment (continued)
6BXP’s Share equals (A) + (B) - (C).
7BXP’s Share of Same Store NOI (excluding termination income) increased $34,154 compared to Q2 2020. Included in the Q2 2021 comparison are BXP’s Share of $24,421 decrease in write-offs associated with accrued rent, net, $14,045 decrease in write-offs associated with accounts receivable, net, $3,070 increase in parking and other revenue and a $1,439 increase in NOI at our only hotel. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $42,975. For additional information, see page 57.
8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $27,311 compared to Q2 2020. Included in the Q2 2021 comparison are BXP’s Share of $14,045 decrease in write-offs associated with accounts receivable, net, $6,964 increase in lease revenue related to primarily related to lower COVID-19 cash rent abatements and deferrals, $3,070 increase in parking and other revenue and a $1,439 increase in NOI at our only hotel. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $25,518. For additional information, see page 57.
11

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Q2 2021
Capital expenditures, tenant improvement costs and leasing commissions
(dollars in thousands, except PSF amounts)


CAPITAL EXPENDITURES
Three Months Ended
30-Jun-2131-Mar-21
Maintenance capital expenditures$23,851 $30,789 
Planned capital expenditures associated with acquisition properties — — 
Repositioning capital expenditures(10)11 
Hotel improvements, equipment upgrades and replacements31 
Subtotal23,844 30,831 
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)380 323 
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs1,156 1,551 
BXP’s share of repositioning capital expenditures from unconsolidated JVs— — 
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs2,086 1,517 
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs— — 
Partners’ share of repositioning capital expenditures from consolidated JVs— — 
BXP’s Share of Capital Expenditures 1
$23,294 $31,188 





2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2
Three Months Ended
30-Jun-2131-Mar-21
Square feet1,354,986 1,095,513 
Tenant improvements and lease commissions PSF$74.26 $82.44 





















___________________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
2Includes 100% of unconsolidated joint ventures.

12

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Q2 2021
Acquisitions and dispositions
For the period from January 1, 2021 through June 30, 2021
(dollars in thousands)

ACQUISITIONS
Investment
PropertyLocationDate AcquiredSquare FeetInitialAnticipated FutureTotalIn-service Leased (%)
153 & 211 Second Avenue Waltham, MAJune 2, 2021136,882 $100,176 $5,000 $105,176 100.0 %
Total Acquisitions136,882 $100,176 $5,000 $105,176 100.0 %

DISPOSITIONS
PropertyLocationDate DisposedSquare FeetGross Sales PriceNet Cash Proceeds
Book Gain
Annapolis Junction Buildings Six and Seven 1
Annapolis, MDMarch 30, 2021246,568 $65,948 $17,600 $10,257 
6595 Springfield Center Drive 2
Springfield, VADecember 13, 2018N/AN/AN/A7,756 
    Total Dispositions246,568 $65,948 $17,600 $18,013 







________________
1Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million. With the sale of Annapolis Junction Buildings Six and Seven, the Company no longer has any assets in Annapolis, Maryland.
2The Company sold its 6595 Springfield Center Drive development project located in Springfield, Virginia. Concurrently with the sale, the Company agreed to act as development manager and guaranteed the completion of the project. The Company earned a development fee of approximately $7.9 million during the development of this building. Upon completion of the project, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, the Company recognized a gain on sale of real estate of approximately $7.8 million during the three months ended June 30, 2021.

13

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Q2 2021
Construction in progress
as of June 30, 2021
(dollars in thousands)

CONSTRUCTION IN PROGRESS 1
Maddie145@Actual/EstimatedBXP’s share
Initial OccupancyStabilization DateSquare Feet
Investment to Date 2
Estimated Total Investment 2
Total Financing
Amount Drawn at 6/30/2021
Estimated Future Equity Requirement 2
Percentage Leased 3
Percentage placed in-service 4
Net Operating Income (Loss) 5 (BXP’s share)
Construction PropertiesLocation
Office
325 Main StreetQ3 2022Q3 2022Cambridge, MA420,000 $251,146 $418,400 $— $— $167,254 90 %— %N/A
100 Causeway Street (50% ownership)Q4 2021Q3 2022Boston, MA632,000 217,179 267,300 200,000 137,894 — 95 %%$(20)
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q1 2022Q2 2022Bethesda, MD734,000 165,438 198,900 127,500 99,426 5,388 100 %— %N/A
Reston NextQ1 2022Q4 2023Reston, VA1,062,000 461,282 715,300 — — 254,018 85 %— %N/A
2100 Pennsylvania Avenue
Q3 2022Q3 2024Washington, DC480,000 184,957 356,100 — — 171,143 56 %— %N/A
Total Office Properties under Construction3,328,0001,280,002 1,956,000 327,500 237,320 597,803 87 %— %(20)
Lab/Life Sciences
200 West Street (Redevelopment) 6
Q4 2021Q4 2021Waltham, MA138,000 19,300 47,800 — — 28,500 100 %— %N/A
880 Winter Street (Redevelopment)Q3 2023Q2 2024Waltham, MA224,000 2,079 108,000 — — 105,921 — %— %N/A
751 Gateway (49% ownership)Q1 2023Q3 2024South San Francisco, CA229,000 22,852 127,600 — — 104,748 — %— %N/A
180 CityPointQ1 2024Q4 2024Waltham, MA329,000 27,291 274,700 — — 247,409 — %— %N/A
Total Lab/Life Sciences Properties under Construction920,000 71,522 558,100 — — 486,578 15 %— %— 
Other
The Prudential Center Observatory (Redevelopment)Q2 2023N/ABoston, MA59,000 31,409 182,300 — — 150,891 N/A— %N/A
Total Properties Under Construction4,307,000 $1,382,933 $2,696,400 $327,500 $237,320 $1,235,272 71 %
7
— %$(20)

PROJECTS FULLY PLACED IN-SERVICE DURING 2021
Actual/EstimatedBXP’s share
Estimated Total Investment 2
Amount Drawn at 6/30/2021
Estimated Future Equity Requirement 2
Net Operating Income (Loss) 5
Initial OccupancyStabilization DateSquare feet
Investment to Date 2
Total Financing
Percentage Leased 3
Location
One Five Nine East 53rd (55% Ownership) Q1 2021Q1 2021New York, NY220,000 $141,717 $150,000 $— $— $8,283 96 %$3,336 
Total Projects Fully Placed In-Service220,000 $141,717 $150,000 $— $— $8,283 96 %

$3,336 
_____________
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 July 23, 2021, 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 June 30, 2021. See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
6Represents a portion of the property under redevelopment for conversion to laboratory space.
7 Total percentage leased excludes Other.
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Q2 2021
Land parcels and purchase options
as of June 30, 2021


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, CA850,000 
Santa Clara, CA 4
632,000 
Washington, DC (50% ownership)520,000 
Springfield, VA422,000 
South San Francisco, CA (50% Ownership)411,000 
Waltham, MA 5
396,000 
Dulles, VA310,000 
El Segundo, CA (50% Ownership) 275,000 
         Total
13,681,000 


VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
Location
Approximate Developable Square Feet 1
Cambridge, MA 1,400,000 
Boston, MA 1,300,000 
Waltham, MA 6
1,200,000 
         Total3,900,000 


























__________________
1Represents 100% of consolidated and unconsolidated projects.
2During the fourth quarter of 2020, a ground lease commenced with a hotel developer to lease approximately 200,000 square feet from the Company. Construction is contingent on the developer’s 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 22.
4On April 16, 2021, the Company removed 3625-3635 Peterson Way from its in-service portfolio following the lease expiration of the last tenant on April 15, 2021. The Company intends to demolish the building and redevelop the site at a future date.
5On June 2, 2021, the Company acquired 153 and 211 Second Avenue, including an additional 120,000 square feet of potential development.
6The Company expects to be a 50% partner in the future development of these sites.

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Q2 2021
Land parcels and purchase options
for the three months ended June 30, 2021

ALL IN-SERVICE PROPERTIES
Net (increase)/decrease in available space (SF)Total
Vacant space available at the beginning of the period5,131,799 
Add:
Properties placed (and partially placed) in-service 1
2,154 
Leases expiring or terminated during the period1,410,005 
Total space available for lease6,543,958 
1st generation leases2,154 
2nd generation leases with new tenants814,522 
2nd generation lease renewals540,464 
Total space leased1,357,140 
Vacant space available for lease at the end of the period5,186,818 
Net (increase)/decrease in available space(55,019)
Second generation leasing information: 2
Leases commencing during the period (SF)1,354,986 
Weighted average lease term (months)90 
Weighted average free rent period (days)194 
Total transaction costs per square foot 3
$74.26 
Increase (decrease) in gross rents total 4
(0.13)%
Increase (decrease) in net rents total 4
(0.28)%
Increase (decrease) in gross rents Office (excluding retail) 9
14.14 %
Increase (decrease) in net rents Office (excluding retail) 9
21.03 %

All leases (SF)
Incr (decr) in 2nd generation cash rents 4
Total square feet of leases executed in the quarter 6, 7
1st generation2nd generation
total 5
gross
net
Boston2,154 419,894 422,048 34.46 %56.14 %193,720 
Los Angeles— 204,352 204,352 (3.15)%(5.35)%490,742 
New York 8
— 193,791 193,791 (37.87)%(43.79)%152,366 
San Francisco— 220,112 220,112 32.17 %47.11 %119,751 
Washington, DC— 316,837 316,837 (5.95)%(8.11)%282,639 
Total / Weighted Average2,154 1,354,986 1,357,140 (0.13)%(0.28)%1,239,218 
Total / Weighted Average Office (excluding retail) 9
2,154 1,277,244 1,279,398 14.14 %21.03 %
_____________
1Total square feet of properties partially placed in-service in Q2 2021 consists of 2,154 square feet of office space at 100 Causeway Street.
2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,354,986 square feet of second generation leases that commenced in Q2 2021, leases for 1,029,714 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) or net rent (gross rent less operating expenses) on the new vs. expired leases on the 975,749 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 leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.
6Amounts shown in this column exclude COVID-19 related lease modifications executed in the second quarter of 2021 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $1.4 million (BXP’s Share) in the second quarter. In addition, COVID-19 related lease modifications from the second quarter of 2020 through the first quarter of 2021 provide cash rent and/or abatement in the aggregate amount of approximately $6.4 million (BXP’s Share) in the second quarter 2021. For additional information, see page 57.
7Represents 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 327,426.
8New York increase (decrease) in 2nd generation cash rents, gross and net include 33,289 square feet related to retail leases. Excluding those retail leases, New York 2nd generation cash rents increased 5.52% gross and 8.44% net, respectively.
9Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) or net rent (gross rent less operating expenses) on the new vs. expired leases on the 928,977 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”) and excludes retail leases.
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Q2 2021
Portfolio overview
for the three months ended June 30, 2021
(dollars in thousands)


Rentable square footage of in-service properties by location and unit type 1, 2
OfficeRetailResidentialHotelTotal
Boston13,717,839 1,058,719 550,114 330,000 15,656,672 
Los Angeles2,181,579 124,932 — — 2,306,511 
New York11,359,823 417,849 — — 11,777,672 
San Francisco7,284,889 343,803 318,171 — 7,946,863 
Washington, DC8,059,374 661,537 822,436 — 9,543,347 
Total42,603,504 2,606,840 1,690,721 330,000 47,231,065 
% of Total90.20 %5.52 %3.58 %0.70 %100.00 %


Rental revenue of in-service properties by unit type 1
OfficeRetailResidential
Hotel 3
Total
Consolidated$645,470 $47,769 $9,161 $1,468 $703,868 
Less:
Partners’ share from consolidated joint ventures 4
65,290 8,183 — — 73,473 
Add:
BXP’s share from unconsolidated joint ventures 5
38,736 2,667 1,402 — 42,805 
BXP’s Share of Rental revenue 1
$618,916 $42,253 $10,563 $1,468 $673,200 
% of Total91.93 %6.28 %1.57 %0.22 %100.00 %


Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 6
CBDSuburbanTotal
Boston26.22 %7.79 %34.01 %
Los Angeles2.88 %— %2.88 %
New York25.97 %2.07 %28.04 %
San Francisco17.78 %2.84 %20.62 %
Washington, DC5.20 %9.25 %14.45 %
Total78.05 %21.95 %100.00 %










_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.
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 20-23.
3Excludes approximately $93 of revenue from retail tenants that is included in Retail.
4See page 60 for additional information.
5See page 62 for additional information.
6BXP’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.

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Q2 2021
Residential and hotel performance
(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS
Residential 1
Hotel 2
Three Months EndedThree Months Ended
30-Jun-2131-Mar-2130-Jun-2131-Mar-21
Rental Revenue 3
$9,763 $9,175 $1,561 $632 
Less: Operating expenses and real estate taxes5,928 6,127 1,996 2,051 
Net Operating Income (Loss) (NOI) 3
3,835 3,048 (435)(1,419)
Add: BXP’s share of NOI from unconsolidated joint ventures449 40 N/AN/A
BXP’s Share of NOI 3
$4,284 $3,088 $(435)$(1,419)
Rental Revenue 3
$9,763 $9,175 $1,561 $632 
Less: Straight line rent and fair value lease revenue21 38 (5)(5)
Subtotal9,742 9,137 1,566 637 
Less: Operating expenses and real estate taxes5,928 6,127 1,996 2,051 
NOI - cash basis 3
3,814 3,010 (430)(1,414)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures449 40 N/AN/A
BXP’s Share of NOI - cash basis 3
$4,263 $3,050 $(430)$(1,414)


RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
30-Jun-2130-Jun-20
BOSTON
Hub50House (50% ownership), Boston, MA 3, 4
440
Average Monthly Rental Rate $3,039 $3,360 (9.55)%
Average Rental Rate Per Occupied Square Foot $4.25 $5.26 (19.20)%
Average Physical Occupancy 71.74 %35.38 %102.77 %
Average Economic Occupancy 63.50 %28.97 %119.19 %
Proto Kendall Square, Cambridge, MA 3, 5
280
Average Monthly Rental Rate $2,504 $2,891 (13.39)%
Average Rental Rate Per Occupied Square Foot $4.60 $5.31 (13.37)%
Average Physical Occupancy 91.67 %92.50 %(0.90)%
Average Economic Occupancy 90.21 %91.86 %(1.80)%
The Lofts at Atlantic Wharf, Boston, MA 3, 5
86
Average Monthly Rental Rate $3,156 $4,530 (30.33)%
Average Rental Rate Per Occupied Square Foot $3.51 $5.01 (29.94)%
Average Physical Occupancy 96.12 %91.86 %4.64 %
Average Economic Occupancy 93.67 %91.71 %2.14 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5
N/A
Average Occupancy21.70 %

— %100.00 %
Average Daily Rate$160.96 

$— 100.00 %
Revenue Per Available Room$34.86 

$— 100.00 %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 6
402
Average Monthly Rental Rate$3,183 N/AN/A
Average Rental Rate Per Occupied Square Foot$3.79 N/AN/A
Average Physical Occupancy26.53 %N/AN/A
Average Economic Occupancy18.71 %N/AN/A

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Q2 2021
Residential and hotel performance (continued)


RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
30-Jun-2130-Jun-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 5
508
Average Monthly Rental Rate $2,143 $2,320 (7.63)%
Average Rental Rate Per Occupied Square Foot $2.22 $2.45 (9.39)%
Average Physical Occupancy 87.20 %81.50 %6.99 %
Average Economic Occupancy 83.13 %76.72 %8.36 %
The Avant at Reston Town Center, Reston, VA 3, 5
359
Average Monthly Rental Rate $2,180 $2,371 (8.06)%
Average Rental Rate Per Occupied Square Foot $2.38 $2.60 (8.46)%
Average Physical Occupancy 94.99 %89.51 %6.12 %
Average Economic Occupancy 94.26 %88.37 %6.67 %
Total In-Service Residential Units2,075 
































_____________
1Includes retail space.
2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and re-opened on October 2, 2020. The hotel continues to operate at a diminished occupancy due to the continued impact of COVID-19 on business and leisure travel.