bxp-20211026
0001037540false0001043121false00010375402021-10-262021-10-260001037540bxp:BostonPropertiesLimitedPartnershipMember2021-10-262021-10-260001037540us-gaap:CommonStockMember2021-10-262021-10-26

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 26, 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 October 26, 2021, 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 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: October 26, 2021




Document


                                                    Exhibit 99.1

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Supplemental Operating and Financial Data
for the Quarter Ended September 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 six markets - Boston, Los Angeles, New York, San Francisco, Seattle, 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 52.5 million square feet and 202 properties, including nine properties under construction/redevelopment. The Company’s properties include 183 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 a tenth consecutive Global Real Estate Sustainability Benchmark (GRESB) “Green Star” recognition 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 52.

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’s 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 56.




GENERAL INFORMATION
Corporate HeadquartersTrading SymbolInvestor RelationsInquiries
800 Boylston StreetBXPBoston Properties, Inc.Inquiries should be directed to
Suite 1900800 Boylston Street, Suite 1900Michael E. LaBelle
Boston, MA 02199Stock Exchange ListingBoston, MA 02199Executive Vice President, Chief Financial Officer
www.bxp.comNew York Stock Exchangeinvestors.bxp.comat 617.236.3352 or
(t) 617.236.3300investorrelations@bxp.commlabelle@bxp.com
(t) 617.236.3429
(Cover photo: Safeco Plaza, Seattle, WA)




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Q3 2021
Table of contents
Page
OVERVIEW
Company Profile
Guidance and assumptions
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


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Q3 2021
Company profile
SNAPSHOT
(as of September 30, 2021)
Fiscal Year-EndDecember 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment)202
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment)52.5 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$108.35 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield3.6%
Consolidated Market Capitalization 2
$32.2 billion
BXP’s Share of Market Capitalization 2, 3
$32.3 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, Seattle, 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 ability to make new investments at opportune times; 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, Chief Legal Officer
William H. Walton, IIIDonna D. GarescheSenior Vice President, Chief Human Resources Officer
Michael R. WalshSenior Vice President, Chief Accounting Officer
James J. Whalen
Senior Vice President, 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 52.

1

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Q3 2021
Guidance and assumptions
GUIDANCE
The Company’s guidance for the full year 2021 and full year 2022 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. 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 October 26, 2021 and those referenced during the Company’s conference call scheduled for October 27, 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 54. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.
Full Year 2021Full Year 2022
LowHighLowHigh
Projected EPS (diluted)$3.11 $3.13 $2.97 $3.17 
Add:
Projected Company share of real estate depreciation and amortization4.14 4.14 4.28 4.28 
Projected Company share of (gains)/losses on sales of real estate(0.75)(0.75)— — 
Projected FFO per share (diluted) $6.50 $6.52 $7.25 $7.45 




ASSUMPTIONS
(dollars in thousands)
Full Year 2021Full Year 2022
LowHighLowHigh
Operating property activity:
Average In-service portfolio occupancy88.00 %89.00 %88.00 %90.00 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income)
5.00 %6.00 %2.00 %3.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income)
4.00 %5.00 %5.50 %6.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales)
$26,000 $28,000 $72,000 $80,000 
BXP’s Share of incremental net operating income related to asset sales over prior year
$(15,000)$(13,000)$(11,000)$(9,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue)
$115,000 $120,000 $90,000 $115,000 
Termination income$12,000 $13,000 $— $4,000 
Other revenue (expense):
Development and management services revenue $25,000 $26,000 $22,000 $28,000 
General and administrative expense 1
$(148,000)$(147,000)$(157,000)$(151,000)
Net interest expense 2
$(469,000)$(466,000)$(415,000)$(405,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO$(141,000)$(139,000)$(147,000)$(143,000)


________________
1 Excludes estimated changes in the market value of the Company’s deferred compensation plan and Gains (losses) from investments in securities.
2 2021 Net interest expense assumption includes the charge of approximately $43 million related to the early extinguishment of debt in connection with the early redemption on October 15, 2021 of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that was scheduled to mature in February 2023.
2

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Q3 2021
Financial highlights
(unaudited and in thousands, except ratios and per share amounts)
Three Months Ended
30-Sep-2130-Jun-21
Net income attributable to Boston Properties, Inc. $108,297 $111,703 
Net income attributable to Boston Properties, Inc. per share - diluted$0.69 $0.71 
FFO attributable to Boston Properties, Inc. 1
$270,477 $268,642 
Diluted FFO per share 1
$1.73 $1.72 
Dividends per common share$0.98 $0.98 
Funds available for distribution to common shareholders and common unitholders (FAD) 2
$236,608 $178,341 
Selected items:
Revenue$730,056 $713,807 
Recoveries from tenants$107,766 $100,433 
Service income from tenants$1,874 $1,516 
BXP’s Share of revenue 3
$696,313 $683,273 
BXP’s Share of straight-line rent 3
$35,811 $30,855 
BXP’s Share of fair value lease revenue 3, 4
$1,793 $1,193 
BXP’s Share of termination income 3
$1,847 $6,067 
Ground rent expense$3,249 $3,261 
Capitalized interest$11,586 $13,014 
Capitalized wages$3,366 $3,459 
Loss from unconsolidated joint ventures$(5,597)$(1,373)
BXP’s share of FFO from unconsolidated joint ventures 5
$12,206 $13,977 
Net income attributable to noncontrolling interests in property partnerships$18,971 $17,164 
FFO attributable to noncontrolling interests in property partnerships 6
$35,744 $34,277 
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)$1,906 $2,207 
Below-market rents (included within Other Liabilities)$24,823 $26,271 
Accrued rental income liability (included within Other Liabilities)$132,580 $136,085 
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7
3.79 3.84 
Interest Coverage Ratio (including capitalized interest) 7
3.37 3.37 
Fixed Charge Coverage Ratio 7
2.94 2.83 
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8
7.70 7.44 
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9
7.4 %8.9 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9
9.2 %7.5 %
FAD Payout Ratio 2
71.97 %95.47 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.9 %64.6 %
Occupancy of In-Service Properties88.4 %88.6 %
Capitalization:
Consolidated Debt$13,378,350 $12,536,065 
BXP’s Share of Debt 10
$13,477,453 $12,534,659 
Consolidated Market Capitalization$32,196,903 $32,436,223 
Consolidated Debt/Consolidated Market Capitalization41.55 %38.65 %
BXP’s Share of Market Capitalization 10
$32,296,006 $32,434,817 
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10
41.73 %38.65 %


_____________
1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. 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 52.
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, 2021, see page 35.
6For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.
7For a quantitative reconciliation for the three months ended September 30, 2021 and June 30, 2021, see page 30.
8For a quantitative reconciliation for the three months ended September 30, 2021 and June 30, 2021, see page 29.
9For a quantitative reconciliation for the three months ended September 30, 2021 and June 30, 2021, see pages 10, 62 and 63.
10For a quantitative reconciliation for September 30, 2021, see page 26.
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Q3 2021
Consolidated Balance Sheets
(unaudited and in thousands)
30-Sep-2130-Jun-21
ASSETS
Real estate $22,088,835 $22,012,095 
Construction in progress 1,054,531 908,061 
Land held for future development 568,034 497,019 
Right of use assets - finance leases 237,845 237,765 
Right of use assets - operating leases170,085 170,331 
Less accumulated depreciation(5,850,397)(5,752,818)
Total real estate18,268,933 18,072,453 
Cash and cash equivalents1,002,728 557,307 
Cash held in escrows 79,193 79,973 
Investments in securities41,517 41,476 
Tenant and other receivables, net61,269 58,624 
Related party note receivable, net78,144 77,872 
Notes receivable, net19,297 19,087 
Accrued rental income, net1,203,840 1,172,411 
Deferred charges, net622,807 627,338 
Prepaid expenses and other assets97,560 46,946 
Investments in unconsolidated joint ventures1,373,522 1,305,589 
Total assets$22,848,810 $22,059,076 
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net$2,898,699 $2,901,709 
Unsecured senior notes, net10,479,651 9,634,356 
Unsecured line of credit— — 
Lease liabilities - finance leases 243,562 243,381 
Lease liabilities - operating leases204,137 226,594 
Accounts payable and accrued expenses331,687 305,969 
Dividends and distributions payable169,739 169,718 
Accrued interest payable87,408 107,386 
Other liabilities 370,403 370,990 
Total liabilities14,785,286 13,960,103 
Commitments and contingencies— — 
Redeemable deferred stock units8,775 8,980 
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding— — 
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,285,391 and 156,214,859 issued and 156,206,491 and 156,135,959 outstanding at September 30, 2021 and June 30, 2021, respectively
1,562 1,561 
Additional paid-in capital6,415,802 6,405,916 
Dividends in excess of earnings(657,021)(612,247)
Treasury common stock at cost, 78,900 shares at September 30, 2021 and June 30, 2021
(2,722)(2,722)
Accumulated other comprehensive loss(40,803)(43,166)
Total stockholders’ equity attributable to Boston Properties, Inc.5,716,818 5,749,342 
Noncontrolling interests:
Common units of the Operating Partnership609,830 615,308 
Property partnerships1,728,101 1,725,343 
Total equity8,054,749 8,089,993 
Total liabilities and equity$22,848,810 $22,059,076 
4

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Q3 2021
Consolidated Income Statements
(unaudited and in thousands, except per share amounts)
Three Months Ended
30-Sep-2130-Jun-21
Revenue
Lease$692,260 $684,025 
Parking and other21,266 17,864 
Insurance proceeds 1
2,241 418 
Hotel revenue5,189 1,561 
Development and management services 6,094 7,284 
Direct reimbursements of payroll and related costs from management services contracts3,006 2,655 
Total revenue730,056 713,807 
Expenses
Operating124,153 117,769 
Real estate taxes131,718 130,440 
Demolition costs169 92 
Restoration expenses related to insurance claim 1
2,241 402 
Hotel operating3,946 1,996 
General and administrative 2
34,560 38,405 
Payroll and related costs from management services contracts3,006 2,655 
Transaction costs1,888 751 
Depreciation and amortization179,412 183,838 
Total expenses481,093 476,348 
Other income (expense)
Loss from unconsolidated joint ventures (5,597)(1,373)
Gains on sales of real estate348 7,756 
Gains (losses) from investments in securities 2
(190)2,275 
Interest and other income (loss)1,520 1,452 
Interest expense(105,794)(106,319)
Net income139,250 141,250 
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships(18,971)(17,164)
Noncontrolling interest - common units of the Operating Partnership 3
(11,982)(12,383)
Net income attributable to Boston Properties, Inc.$108,297 $111,703 
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic$0.69 $0.72 
Net income attributable to Boston Properties, Inc. per share - diluted$0.69 $0.71 















_____________
1Amounts 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 $(0.2) million and $2.3 million and Gains (losses) from investments in securities include $(0.2) million and $2.3 million for the three months ended September 30, 2021 and June 30, 2021, respectively, related to the Company’s deferred compensation plan.
3For additional detail, see page 6.

5

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Q3 2021
Funds from operations (FFO) 1
(unaudited and dollars in thousands, except per share amounts)
Three Months Ended
30-Sep-2130-Jun-21
Net income attributable to Boston Properties, Inc.$108,297 $111,703 
Add:
Noncontrolling interest - common units of the Operating Partnership11,982 12,383 
Noncontrolling interests in property partnerships18,971 17,164 
Net income139,250 141,250 
Add:
Depreciation and amortization expense179,412 183,838 
Noncontrolling interests in property partnerships' share of depreciation and amortization 2
(16,773)(17,113)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3
17,803 15,350 
Corporate-related depreciation and amortization(443)(444)
Less:
Gains on sales of real estate348 7,756 
Noncontrolling interests in property partnerships18,971 17,164 
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO)299,930 297,961 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO29,453 29,319 
FFO attributable to Boston Properties, Inc. $270,477 $268,642 
Boston Properties, Inc.’s percentage share of Basic FFO 90.18 %90.16 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO9.82 %9.84 %
Basic FFO per share$1.73 $1.72 
Weighted average shares outstanding - basic156,183 156,107 
Diluted FFO per share$1.73 $1.72 
Weighted average shares outstanding - diluted156,598 156,519 

RECONCILIATION TO DILUTED FFO
Three Months Ended
30-Sep-2130-Jun-21
Basic FFO$299,930 $297,961 
Add:
Effect of dilutive securities - stock-based compensation— — 
Diluted FFO299,930 297,961 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO29,393 29,259 
Boston Properties, Inc.’s share of Diluted FFO$270,537 $268,702 

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO
Three Months Ended
30-Sep-2130-Jun-21
Shares/units for Basic FFO173,194 173,150 
Add:
Effect of dilutive securities - stock-based compensation (shares/units)415 412 
Shares/units for Diluted FFO173,609 173,562 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)17,011 17,043 
Boston Properties, Inc.’s share of shares/units for Diluted FFO156,598 156,519 
Boston Properties, Inc.’s percentage share of Diluted FFO90.20 %90.18 %



_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
2For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.
3For a quantitative reconciliation for the three months ended September 30, 2021, see page 35.
6

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Q3 2021
Funds available for distributions (FAD) 1
(dollars in thousands)
Three Months Ended
30-Sep-2130-Jun-21
Net income attributable to Boston Properties, Inc.$108,297 $111,703 
Add:
Noncontrolling interest - common units of the Operating Partnership11,982 12,383 
Noncontrolling interests in property partnerships18,971 17,164 
Net income139,250 141,250 
Add:
Depreciation and amortization expense179,412 183,838 
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2
(16,773)(17,113)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3
17,803 15,350 
Corporate-related depreciation and amortization(443)(444)
Less:
Gains on sales of real estate348 7,756 
Noncontrolling interests in property partnerships18,971 17,164 
Basic FFO299,930 297,961 
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4
3,379 (132)
BXP’s Share of hedge amortization 1
1,446 1,446 
BXP’s Share of straight-line ground rent expense adjustment 1, 5
996 698 
Stock-based compensation8,440 13,993 
Non-real estate depreciation443 444 
Unearned portion of capitalized fees from consolidated joint ventures 6
2,207 603 
Less:
BXP’s Share of straight-line rent 1
35,811 30,855 
BXP’s Share of fair value lease revenue 1, 7
1,793 1,193 
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1
25,826 82,476 
BXP’s Share of maintenance capital expenditures 1, 8
16,800 22,145 
Hotel improvements, equipment upgrades and replacements
Funds available for distribution to common shareholders and common unitholders (FAD) (A)
$236,608 $178,341 
Distributions to common shareholders and unitholders (excluding any special distributions) (B)
$170,286 $170,266 
FAD Payout Ratio1 (B÷A)
71.97 %95.47 %








_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
2For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.
3For a quantitative reconciliation for the three months ended September 30, 2021, see page 35.
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 58 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.

7

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Q3 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-Sep-2130-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders$108,297 $89,854 
Preferred dividends— 2,625 
Net income attributable to Boston Properties, Inc.108,297 92,479 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership11,982 10,020 
Noncontrolling interest in property partnerships18,971 15,561 
Net income139,250 118,060 
Add:
Interest expense105,794 110,993 
Depreciation and amortization expense179,412 166,456 
Transaction costs1,888 307 
Payroll and related costs from management services contracts3,006 2,896 
General and administrative expense34,560 27,862 
Less:
Interest and other income (loss)1,520 (45)
Gains (losses) from investments in securities(190)1,858 
Gains (losses) on sales of real estate348 (209)
Loss from unconsolidated joint ventures(5,597)(6,873)
Direct reimbursements of payroll and related costs from management services contracts3,006 2,896 
Development and management services revenue 6,094 7,281 
Net Operating Income (NOI)458,729 421,666 
Add:
BXP’s share of NOI from unconsolidated joint ventures 1
24,266 24,938 
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2
47,800 42,160 
BXP’s Share of NOI 435,195 404,444 
Less:
Termination income1,874 3,406 
BXP’s share of termination income from unconsolidated joint ventures 1
(17)— 
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2
10 556 
BXP’s Share of NOI (excluding termination income) $433,348 $401,594 
Net Operating Income (NOI)$458,729 $421,666 
Less:
Termination income1,874 3,406 
NOI from non Same Properties (excluding termination income) 3
5,227 1,842 
Same Property NOI (excluding termination income)451,628 416,418 
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2
47,790 41,604 
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
1,502 (70)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1
24,283 24,938 
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3
1,827 1,394 
BXP’s Share of Same Property NOI (excluding termination income)$427,796 $398,288 

_____________
1For a quantitative reconciliation for the three months ended September 30, 2021, see page 61.
2For a quantitative reconciliation for the three months ended September 30, 2021, see pages 58-59.
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 September 30, 2021 and therefore are no longer a part of the Company’s property portfolio.
8

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Q3 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-Sep-2130-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders$108,297 $89,854 
Preferred dividends— 2,625 
Net income attributable to Boston Properties, Inc.108,297 92,479 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership11,982 10,020 
Noncontrolling interest in property partnerships18,971 15,561 
Net income139,250 118,060 
Add:
Interest expense105,794 110,993 
Depreciation and amortization expense179,412 166,456 
Transaction costs1,888 307 
Payroll and related costs from management services contracts3,006 2,896 
General and administrative expense34,560 27,862 
Less:
Interest and other income (loss)1,520 (45)
Gains (losses) from investments in securities(190)1,858 
Gains (losses) on sales of real estate348 (209)
Loss from unconsolidated joint ventures(5,597)(6,873)
Direct reimbursements of payroll and related costs from management services contracts3,006 2,896 
Development and management services revenue 6,094 7,281 
Net Operating Income (NOI)458,729 421,666 
Less:
Straight-line rent36,675 46,713 
Fair value lease revenue1,408 (662)
Termination income1,874 3,406 
Add:
Straight-line ground rent expense adjustment 1
748 799 
Lease transaction costs that qualify as rent inducements 2
4,090 3,966 
NOI - cash (excluding termination income)423,610 376,974 
Less:
NOI - cash from non Same Properties (excluding termination income) 3
3,732 1,542 
Same Property NOI - cash (excluding termination income)419,878 375,432 
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4
45,150 35,318 
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
1,075 (64)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5
21,619 22,288 
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3
1,634 (124)
BXP’s Share of Same Property NOI - cash (excluding termination income)$395,788 $362,462 

_____________
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 $40 and $98 for the three months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, the Company has remaining lease payments aggregating approximately $25.4 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.
2Consist 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 September 30, 2021 and therefore are no longer a part of the Company’s property portfolio.
4For a quantitative reconciliation for the three months ended September 30, 2021, see page 59.
5For a quantitative reconciliation for the three months ended September 30, 2021, see page 61.
9

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Q3 2021
Same property net operating income (NOI) by reportable segment
(dollars in thousands)
Office 1
Hotel & Residential
Three Months Ended$%Three Months Ended$%
30-Sep-2130-Sep-20ChangeChange30-Sep-2130-Sep-20ChangeChange
Rental Revenue 2
$696,372 $668,369 $15,276 $9,784 
Less: Termination income1,874 2,715 — 691 
Rental revenue (excluding termination income) 2
694,498 665,654 $28,844 4.3 %15,276 9,093 $6,183 68.0 %
Less: Operating expenses and real estate taxes249,844 250,951 (1,107)(0.4)%8,302 7,378 924 12.5 %
NOI (excluding termination income) 2, 3
$444,654 $414,703 $29,951 7.2 %$6,974 $1,715 $5,259 306.6 %
Rental revenue (excluding termination income) 2
$694,498 $665,654 $28,844 4.3 %$15,276 $9,093 $6,183 68.0 %
Less: Straight-line rent and fair value lease revenue36,596 45,598 (9,002)(19.7)%(8)153 (161)(105.2)%
Add: Lease transaction costs that qualify as rent inducements 4
4,042 3,966 76 1.9 %48 — 48 100.0 %
Subtotal661,944 624,022 37,922 6.1 %15,332 8,940 6,392 71.5 %
Less: Operating expenses and real estate taxes249,844 250,951 (1,107)(0.4)%8,302 7,378 924 12.5 %
Add: Straight-line ground rent expense 5
748 799 (51)(6.4)%— — — — %
NOI - cash (excluding termination income) 2, 3
$412,848 $373,870 $38,978 10.4 %$7,030 $1,562 $5,468 350.1 %
Consolidated Total 1 (A)
BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended$%Three Months Ended$%
30-Sep-2130-Sep-20ChangeChange30-Sep-2130-Sep-20ChangeChange
Rental Revenue 2
$711,648 $678,153 $37,933 $39,390 
Less: Termination income1,874 3,406 (17)— 
Rental revenue (excluding termination income) 2
709,774 674,747 $35,027 5.2 %37,950 39,390 $(1,440)(3.7)%
Less: Operating expenses and real estate taxes258,146 258,329 (183)(0.1)%15,494 15,846 (352)(2.2)%
NOI (excluding termination income) 2, 3
$451,628 $416,418 $35,210 8.5 %$22,456 $23,544 $(1,088)(4.6)%
Rental revenue (excluding termination income) 2
$709,774 $674,747 $35,027 5.2 %$37,950 $39,390 $(1,440)(3.7)%
Less: Straight-line rent and fair value lease revenue36,588 45,751 (9,163)(20.0)%2,838 1,004 1,834 182.7 %
Add: Lease transaction costs that qualify as rent inducements 4
4,090 3,966 124 3.1 %367 (128)495 386.7 %
Subtotal$677,276 $632,962 44,314 7.0 %35,479 38,258 (2,779)(7.3)%
Less: Operating expenses and real estate taxes258,146 258,329 (183)(0.1)%15,494 15,846 (352)(2.2)%
Add: Straight-line ground rent expense 5
748 799 (51)(6.4)%— — — — %
NOI - cash (excluding termination income) 2, 3
$419,878 $375,432 $44,446 11.8 %$19,985 $22,412 $(2,427)(10.8)%
Partners’ share of Consolidated Joint Ventures (C)
BXP’s Share 3, 6, 7, 8
Three Months Ended$%Three Months Ended$%
30-Sep-2130-Sep-20ChangeChange30-Sep-2130-Sep-20ChangeChange
Rental Revenue 2
$75,191 $71,395 $674,390 $646,148 
Less: Termination income10 556 1,847 2,850 
Rental revenue (excluding termination income) 2
75,181 70,839 $4,342 6.1 %672,543 643,298 $29,245 4.5 %
Less: Operating expenses and real estate taxes28,893 29,165 (272)(0.9)%244,747 245,010 (263)(0.1)%
NOI (excluding termination income) 2, 3
$46,288 $41,674 $4,614 11.1 %$427,796 $398,288 $29,508 7.4 %
Rental revenue (excluding termination income) 2
$75,181 $70,839 $4,342 6.1 %$672,543 $643,298 $29,245 4.5 %
Less: Straight-line rent and fair value lease revenue3,291 7,165 (3,874)(54.1)%36,135 39,590 (3,455)(8.7)%
Add: Lease transaction costs that qualify as rent inducements 4
1,078 873 205 23.5 %3,379 2,965 414 14.0 %
Subtotal72,968 64,547 8,421 13.0 %639,787 606,673 33,114 5.5 %
Less: Operating expenses and real estate taxes28,893 29,165 (272)(0.9)%244,747 245,010 (263)(0.1)%
Add: Straight-line ground rent expense 5
— — — — %748 799 (51)(6.4)%
NOI - cash (excluding termination income) 2, 3
$44,075 $35,382 $8,693 24.6 %$395,788 $362,462 $33,326 9.2 %
___________________
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 52.
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.
4Consist 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 $40 and $98 for the three months ended September 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.
10

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Q3 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 $29,508 compared to Q3 2020. Included in the Q3 2020 comparison are BXP’s Share of $5,931 in write-offs associated with accrued rent, net and $3,790 in write-offs associated with accounts receivable, net. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $9,721.
8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $33,326 compared to Q3 2020. Included in the Q3 2020 comparison is BXP’s Share of $3,790 in write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $8,812 in Q3 2021 compared to Q3 2020. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $12,602. For additional information, see page 56.
11

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Q3 2021
Capital expenditures, tenant improvement costs and leasing commissions
(dollars in thousands, except PSF amounts)


CAPITAL EXPENDITURES
Three Months Ended
30-Sep-2130-Jun-21
Maintenance capital expenditures$17,779 $23,851 
Planned capital expenditures associated with acquisition properties — — 
Repositioning capital expenditures— (10)
Hotel improvements, equipment upgrades and replacements
Subtotal17,782 23,844 
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)192 380 
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs786 1,156 
BXP’s share of repositioning capital expenditures from unconsolidated JVs— — 
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs1,171 2,086 
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
$17,589 $23,294 





2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2
Three Months Ended
30-Sep-2130-Jun-21
Square feet718,572 1,354,986 
Tenant improvements and lease commissions PSF$43.95 $74.26 





















___________________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
2Includes 100% of unconsolidated joint ventures.

12

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Q3 2021
Acquisitions and dispositions
For the period from January 1, 2021 through September 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 %
Shady Grove Bio+Tech Campus 1
Rockville, MDAugust 2, 2021233,452 116,500 — 116,500 64.4 %
Safeco Plaza 2
Seattle, WASeptember 1, 2021765,139 465,000 40,000 505,000 90.9 %
Total Acquisitions1,135,473 $681,676 $45,000 $726,676 86.6 %

DISPOSITIONS
PropertyLocationDate DisposedSquare FeetGross Sales PriceNet Cash Proceeds
Book Gain
Annapolis Junction Buildings Six and Seven 3
Annapolis, MDMarch 30, 2021246,568 $65,948 $17,600 $10,257 
6595 Springfield Center Drive 4
Springfield, VADecember 13, 2018N/AN/AN/A8,104 
    Total Dispositions246,568 $65,948 $17,600 $18,361 









________________
1Shady Grove Bio+Tech Campus is an approximately 435,000 net rentable square foot, seven-building office park situated on an approximately 31-acre site. The Company intends to reposition three of the buildings, which are currently vacant, to support life sciences uses. These three buildings are not part of the Company’s in-service portfolio and are included within Land Held for Future Development on the Company’s Consolidated Balance Sheet. The Company anticipates it will redevelop or convert the remaining four buildings to lab or life sciences-related uses as each becomes vacant.
2The acquisition was completed through a newly formed joint venture with two institutional partners. Each partner owns approximately one-third of the joint venture. Each of the institutional partners invested approximately $71.9 million of cash for its ownership interest in the joint venture. The Company invested approximately $72.6 million in the joint venture and is providing customary operating, property management and leasing services to the venture. The purchase price was funded with cash and proceeds from a new mortgage loan secured by the property.
3Completed 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.
4The 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 $8.1 million during the nine months ended September 30, 2021, of which approximately $0.3 million occurred during the three months ended September 30, 2021.

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Q3 2021
Construction in progress
as of September 30, 2021
(dollars in thousands)

CONSTRUCTION IN PROGRESS 1
Actual/EstimatedBXP’s share
Initial OccupancyStabilization DateSquare Feet
Investment to Date 2
Estimated Total Investment 2
Total Financing
Amount Drawn at 9/30/2021
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 $283,920 $418,400 $— $— $134,480 90 %— %N/A
100 Causeway Street (50% ownership)Q3 2021Q3 2022Boston, MA632,000 229,627 267,300 200,000 148,603 — 95 %79 %$47 
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q1 2022Q1 2022Bethesda, MD734,000 168,945 198,900 127,500 104,036 6,491 100 %— %N/A
Reston Next 6
Q4 2021Q4 2023Reston, VA1,062,000 507,726 715,300 — — 207,574 85 %— %N/A
2100 Pennsylvania Avenue
Q3 2022Q3 2024Washington, DC480,000 209,193 356,100 — — 146,907 56 %— %N/A
Total Office Properties under Construction3,328,000 1,399,411 1,956,000 327,500 252,639 495,452 87 %15 %47 
Lab/Life Sciences
200 West Street (Redevelopment) 7
Q4 2021Q4 2021Waltham, MA138,000 29,340 47,800 — — $18,460 100 %— %N/A
880 Winter Street (Redevelopment)Q1 2023Q2 2024Waltham, MA224,000 6,964 108,000 — — 101,036 17 %— %N/A
751 Gateway (49% ownership)Q1 2023Q3 2024South San Francisco, CA229,000 28,723 127,600 — — 98,877 — %— %N/A
180 CityPointQ1 2024Q4 2024Waltham, MA329,000 41,442 274,700 — — 233,258 — %— %N/A
Total Lab/Life Sciences Properties under Construction920,000 106,469 558,100 — — 451,631 19 %— %— 
Other
View Boston Observatory at The Prudential Center (Redevelopment)Q2 2023N/ABoston, MA59,000 45,158 182,300 — — 137,142 N/A— %N/A
Total Properties Under Construction4,307,000 $1,551,038 $2,696,400 $327,500 $252,639 $1,084,225 72 %
8
12 %$47 
PROJECTS FULLY PLACED IN-SERVICE DURING 2021
Actual/EstimatedBXP’s share
Estimated Total Investment 2
Amount Drawn at 9/30/2021
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 $144,402 $150,000 $— $— $5,598 96 %$3,261 
Total Projects Fully Placed In-Service220,000 $144,402 $150,000 $— $— $5,598 96 %

$3,261 
_____________
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 22, 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 September 30, 2021. See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
6On October 19, 2021, approximately 285,000 square feet of the project was placed in-service.
7Represents a portion of the property under redevelopment for conversion to laboratory space.
8Total percentage leased excludes Other.
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Q3 2021
Land parcels and purchase options
as of September 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 632,000 
Washington, DC (50% ownership)520,000 
Springfield, VA422,000 
South San Francisco, CA (50% Ownership)411,000 
Waltham, MA396,000 
Dulles, VA310,000 
El Segundo, CA (50% Ownership) 275,000 
Rockville, MD 3, 4
202,000 
         Total
13,883,000 


VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
Location
Approximate Developable Square Feet 1
Cambridge, MA 1,400,000 
Boston, MA 1,300,000 
Waltham, MA 5
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 August 2, 2021, the Company acquired the Shady Grove Bio+Tech Campus in Rockville, Maryland, which includes three buildings that are currently vacant, totaling 202,000 square feet. The Company intends to reposition these three vacant buildings to support life sciences uses. These three buildings are not included in the Company’s in-service portfolio.
5The Company expects to be a 50% partner in the future development of these sites.


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Q3 2021
Leasing activity
for the three months ended September 30, 2021

ALL IN-SERVICE PROPERTIES
Net (increase)/decrease in available space (SF)Total
Vacant space available at the beginning of the period5,186,818 
Add:
Properties acquired vacant space 1
143,848 
Properties placed (and partially placed) in-service 2
503,024 
Leases expiring or terminated during the period862,505 
Total space available for lease6,696,195 
1st generation leases585,933 
2nd generation leases with new tenants407,240 
2nd generation lease renewals311,332 
Total space leased1,304,505 
Vacant space available for lease at the end of the period5,391,690 
Net (increase)/decrease in available space(204,872)
Second generation leasing information: 3
Leases commencing during the period (SF)718,572 
Weighted average lease term (months)58 
Weighted average free rent period (days)124 
Total transaction costs per square foot 4
$43.95 
Increase (decrease) in gross rents 5
(9.42)%
Increase (decrease) in net rents 6
(14.23)%


All leases (SF)Incr (decr) in 2nd generation cash rents
Total square feet of leases executed in the quarter 8
1st generation2nd generation
total 7
gross 5
net 6
Boston571,766 209,872 781,638 11.09 %16.59 %769,093 
Los Angeles— 8,973 8,973 (8.00)%(11.16)%7,180 
New York14,167 245,097 259,264 (17.65)%(27.06)%168,990 
San Francisco— 91,359 91,359 7.19 %9.44 %185,253 
Seattle— — — — — — 
Washington, DC— 163,271 163,271 (14.64)%(21.87)%301,301 
Total / Weighted Average585,933 718,572 1,304,505 (9.42)%(14.23)%1,431,817 



_____________
1Total square feet of properties acquired vacant space in Q3 2021 consists of 69,581 square feet at Safeco Plaza and 74,267 square feet at Shady Grove Bio+Tech Campus, which excludes three vacant properties included within Owned Land Parcels on page 15.
2Total square feet of properties partially placed in-service in Q3 2021 consists of 6,709 square feet at 685 Gateway and 496,315 square feet at 100 Causeway Street.
3Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 718,572 square feet of second generation leases that commenced in Q3 2021, leases for 397,853 square feet were signed in prior periods.
4Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.
5Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 507,899 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 the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 507,899 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”).
7Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.
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 320,719.

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Q3 2021
Portfolio overview
for the three months ended September 30, 2021
(dollars in thousands)


Rentable square footage of in-service properties by location and unit type 1, 2
OfficeRetailResidentialHotelTotal
Boston13,720,696 1,058,690 550,114 330,000 15,659,500 
Los Angeles2,181,670 124,932 — — 2,306,602 
New York11,328,824 417,849 — — 11,746,673 
San Francisco7,291,388 351,186 318,171 — 7,960,745 
Seattle749,110 16,029 — — 765,139 
Washington, DC8,274,757 682,131 822,436 — 9,779,324 
Total43,546,445 2,650,817 1,690,721 330,000 48,217,983 
% of Total90.31 %5.50 %3.51 %0.68 %100.00 %


Rental revenue of in-service properties by unit type 1
OfficeRetailResidential
Hotel 3
Total
Consolidated$655,238 $50,402 $10,227 $5,089 $720,956 
Less:
Partners’ share from consolidated joint ventures 4
68,008 8,943 — — 76,951 
Add:
BXP’s share from unconsolidated joint ventures 5
38,933 2,185 1,923 — 43,041 
BXP’s Share of Rental revenue 1
$626,163 $43,644 $12,150 $5,089 $687,046 
% of Total91.14 %6.35 %1.77 %0.74 %100.00 %


Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 6
CBDSuburbanTotal
Boston26.66 %7.78 %34.44 %
Los Angeles2.79 %— %2.79 %
New York26.71 %2.05 %28.76 %
San Francisco16.65 %2.83 %19.48 %
Seattle0.15 %— %0.15 %
Washington, DC4.89 %9.49 %14.38 %
Total77.85 %22.15 %100.00 %










_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
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 $100 of revenue from retail tenants that is included in Retail.
4See page 59 for additional information.
5See page 61 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. to BXP’s Share of NOI (excluding termination income), see page 8.

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Q3 2021
Residential and hotel performance
(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS
Residential 1
Hotel 2
Three Months EndedThree Months Ended
30-Sep-2130-Jun-2130-Sep-2130-Jun-21
Rental Revenue 3
$10,894 $9,763 $5,189 $1,561 
Less: Operating expenses and real estate taxes6,045 5,928 3,946 1,996 
Net Operating Income (Loss) (NOI) 3
4,849 3,835 1,243 (435)
Add: BXP’s share of NOI from unconsolidated joint ventures882 449 N/AN/A
BXP’s Share of NOI 3
$5,731 $4,284 $1,243 $(435)
Rental Revenue 3
$10,894 $9,763 $5,189 $1,561 
Less: Straight line rent and fair value lease revenue(13)21 (5)
Add: Lease transaction costs that qualify as rent inducements48 — — — 
Subtotal10,955 9,742 5,184 1,566 
Less: Operating expenses and real estate taxes6,045 5,928 3,946 1,996 
NOI - cash basis 3
4,910 3,814 1,238 (430)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures882 449 N/AN/A
BXP’s Share of NOI - cash basis 3
$5,792 $4,263 $1,238 $(430)


RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
30-Sep-2130-Sep-20
BOSTON
Hub50House (50% ownership), Boston, MA 3
440
Average Monthly Rental Rate $3,360 $3,571 (5.91)%
Average Rental Rate Per Occupied Square Foot $4.69 $5.32 (11.84)%
Average Physical Occupancy 87.50 %45.08 %94.10 %
Average Economic Occupancy 82.92 %39.31 %110.94 %
Proto Kendall Square, Cambridge, MA 3, 4
280
Average Monthly Rental Rate $2,642 $2,676 (1.27)%
Average Rental Rate Per Occupied Square Foot $4.82 $4.91 (1.83)%
Average Physical Occupancy 94.52 %85.71 %10.28 %
Average Economic Occupancy 93.90 %83.13 %12.96 %
The Lofts at Atlantic Wharf, Boston, MA 3, 4
86
Average Monthly Rental Rate $3,747 $4,231 (11.44)%
Average Rental Rate Per Occupied Square Foot $4.17 $4.62 (9.74)%
Average Physical Occupancy 96.51 %80.23 %20.29 %
Average Economic Occupancy 95.38 %80.74 %18.13 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 4
N/A
Average Occupancy49.40 %

— %100.00 %
Average Daily Rate$222.31 

$— 100.00 %
Revenue Per Available Room$109.86 

$— 100.00 %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 5
402
Average Monthly Rental Rate$3,307 $3,887 (14.92)%
Average Rental Rate Per Occupied Square Foot$3.92 $4.97 (21.13)%
Average Physical Occupancy48.34 %2.27 %2,029.52 %
Average Economic Occupancy41.03 %1.70 %2,313.53 %

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Q3 2021
Residential and hotel performance (continued)


RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
30-Sep-2130-Sep-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 4
508
Average Monthly Rental Rate $2,429 $2,319 4.74 %
Average Rental Rate Per Occupied Square Foot $2.51 $