SEC Filing | Boston Properties, Inc.

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bxp-20220502

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): May 2, 2022

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 Partnership	Delaware	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:

Registrant

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Boston Properties, Inc.

Common Stock, par value $0.01 per share

BXP

New 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 May 2, 2022, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the first quarter of 2022. 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						Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 202 2 .
*99.2						Press release dated May 2 , 2022.
*101.SCH						Inline XBRL Taxonomy Extension Schema Document.
*101.LAB						Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE						Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF						Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104						Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.


BOSTON PROPERTIES, INC.

By:			/s/ MICHAEL E. LABELLE
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			and Treasurer



BOSTON PROPERTIES LIMITED PARTNERSHIP
By: Boston Properties, Inc., its General Partner

By:			/s/ MICHAEL E. LABELLE
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			and Treasurer

Date: May 2, 2022

Document

Exhibit 99.1

https://cdn.kscope.io/484be18c6bc9b56950b226020bed2e49-platform16a.jpg

https://cdn.kscope.io/484be18c6bc9b56950b226020bed2e49-bxp-colorb.gif

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2022

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“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 53.1 million square feet and 201 properties, including eleven properties under construction/redevelopment. The Company’s properties include 182 office properties, 12 retail properties, six residential properties and one hotel. BXP 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. BXP actively works to promote its growth and operations in a sustainable and responsible manner. The Company has earned a tenth consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, 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 BXP’s 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 (1) the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, (2) the impact of geopolitical conflicts, including the ongoing war in Ukraine, and (3) the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, increasing interest rates, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and tenant behavior, as well as possible future governmental responses; risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets; risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets; 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 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. BXP 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 Headquarters	Trading Symbol	Investor Relations	Inquiries
800 Boylston Street	BXP	Boston Properties, Inc.	Inquiries should be directed to
Suite 1900		800 Boylston Street, Suite 1900	Helen Han
Boston, MA 02199	Stock Exchange Listing	Boston, MA 02199	Vice President, Investor Relations
www.bxp.com	New York Stock Exchange	investors.bxp.com	at 617.236.3429 or
(t) 617.236.3300		investorrelations@bxp.com	hhan@bxp.com
		(t) 617.236.3429
			Michael E. LaBelle
			Executive Vice President, Chief Financial Officer
			at 617.236.3352 or
			mlabelle@bxp.com

(Cover photo: Rendering of Platform 16, San Jose, CA)


			Q1 2022
			Table of contents


			Page
OVERVIEW
Company Profile			1
Guidance and assumptions			2

FINANCIAL INFORMATION
Financial Highlights			3
Consolidated Balance Sheets			4
Consolidated Income Statements			5
Funds From Operations (FFO)			6
Funds Available for Distribution (FAD)			7
Net Operating Income (NOI)			8
Same Property Net Operating Income (NOI) by Reportable Segment			10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions			12
Acquisitions and Dispositions			13

DEVELOPMENT ACTIVITY
Construction in Progress			14
Land Parcels and Purchase Options			15

LEASING ACTIVITY
Leasing Activity			16

PROPERTY STATISTICS
Portfolio Overview			17
Residential and Hotel Performance			18
In-Service Property Listing			20
Top 20 Tenants Listing and Portfolio Tenant Diversification			24
Occupancy by Location			25

DEBT AND CAPITALIZATION
Capital Structure			26
Debt Analysis			27
Senior Unsecured Debt Covenant Compliance Ratios			28
Net Debt to EBITDAre			29
Debt Ratios			30

JOINT VENTURES
Consolidated Joint Ventures			31
Unconsolidated Joint Ventures			33

LEASE EXPIRATION ROLL-OUT
Total In-Service Properties			36
Boston			37
Los Angeles			39
New York			41
San Francisco			43
Washington, DC			45
CBD			47
Suburban			49

RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage			51
Definitions			52
Reconciliations			56
Consolidated Income Statement - Prior Year			64


			Q1 2022
			Company profile

SNAPSHOT

(as of March 31, 2022)


Fiscal Year-End			December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment)			201
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment)			53.1 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			174.9 million
Closing Price, at the end of the quarter			$128.80 per share
Dividend - Quarter/Annualized			$0.98/$3.92 per share
Dividend Yield			3.0%
Consolidated Market Capitalization 2			$35.5 billion
BXP’s Share of Market Capitalization 2, 3			$35.6 billion
Senior Debt Ratings			BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

BXP’s 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 Directors

Management

Joel I. Klein

Chairman of the Board

Owen D. Thomas

Chief Executive Officer

Owen D. Thomas

Chief Executive Officer

Douglas T. Linde

President

Douglas T. Linde

President

Raymond A. Ritchey

Senior Executive Vice President

Kelly A. Ayotte

Chair of Compensation Committee

Michael E. LaBelle

Executive Vice President, Chief Financial Officer and Treasurer

Bruce W. Duncan

Bryan J. Koop

Executive Vice President, Boston Region

Carol B. Einiger

Robert E. Pester

Executive Vice President, San Francisco Region

Diane J. Hoskins

Chair of Sustainability Committee

Hilary Spann

Executive Vice President, New York Region

Mary E. Kipp

Peter V. Otteni

Executive Vice President, Co-Head of the Washington, DC Region

Matthew J. Lustig

Chair of Nominating & Corporate Governance Committee

John J. Stroman

Executive Vice President, Co-Head of the Washington, DC Region

David A. Twardock

Chair of Audit Committee

Jonathan D. Lange

Senior Vice President, Los Angeles Region

William H. Walton, III

Frank D. Burt

Senior Vice President, Chief Legal Officer

Donna D. Garesche

Senior Vice President, Chief Human Resources Officer

Michael R. Walsh

Senior 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.


			Q1 2022
			Guidance and assumptions

GUIDANCE

The Company’s guidance for the second quarter 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 May 2, 2022 and those referenced during the Company’s conference call scheduled for May 3, 2022. Except as otherwise publicly disclosed, the estimates do not include the impacts of any potential (1) capital markets activity, (2) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (3) 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 or 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.


			Second Quarter 2022				Full Year 2022
			Low		High		Low		High
Projected EPS (diluted)			$	0.79	$	0.81	$	5.32	$	5.42
	Add:
		Projected Company share of real estate depreciation and amortization	1.05		1.05		4.30		4.30
		Projected Company share of (gains)/losses on sales of real estate	—		—		(2.22)		(2.22)
Projected FFO per share (diluted)			$	1.84	$	1.86	$	7.40	$	7.50

ASSUMPTIONS

(dollars in thousands)


		Full Year 2022
		Low			High
Operating property activity:
	Average In-service portfolio occupancy	88.00		%	90.00		%
	Increase in BXP’s Share of Same Property net operating income (excluding termination income)	2.75		%	3.75		%
	Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income)	5.00		%	6.00		%
	BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales)	$	95,000		$	105,000
	BXP’s Share of incremental net operating income related to asset sales over prior year	$	(33,000)		$	(27,000)
	BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue)	$	120,000		$	135,000
	Termination income	$	3,000		$	5,000

Other revenue (expense):
	Development, management services and other revenue	$	26,000		$	33,000
	General and administrative expense 1	$	(157,000)		$	(151,000)
	Net interest expense	$	(420,000)		$	(410,000)

Noncontrolling interest:
	Noncontrolling interest in property partnerships’ share of FFO	$	(144,000)		$	(140,000)

_______________

1 Excludes estimated changes in the market value of the Company’s deferred compensation plan and gains (losses) from investments in securities.


			Q1 2022
			Financial highlights

(unaudited and in thousands, except ratios and per share amounts)


	Three Months Ended
	31-Mar-22			31-Dec-21
Net income attributable to Boston Properties, Inc.	$	143,047		$	184,537
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.91		$	1.18
FFO attributable to Boston Properties, Inc. 1	$	286,136		$	242,963
Diluted FFO per share 1	$	1.82		$	1.55
Dividends per common share	$	0.98		$	0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2	$	248,032		$	143,195

Selected items:
Revenue	$	754,307		$	731,063
Recoveries from tenants	$	115,910		$	104,194
Service income from tenants	$	1,787		$	2,428
BXP’s Share of revenue 3	$	735,572		$	708,519
BXP’s Share of straight-line rent 3	$	35,103		$	30,129
BXP’s Share of fair value lease revenue 3, 4	$	2,185		$	2,058
BXP’s Share of termination income 3	$	2,463		$	76
Losses from early extinguishments of debt	$	—		$	(44,284)
Ground rent expense	$	3,155		$	3,192
Capitalized interest	$	13,740		$	13,839
Capitalized wages	$	4,050		$	3,594
Income (loss) from unconsolidated joint ventures	$	2,189		$	(825)
BXP’s share of FFO from unconsolidated joint ventures 5	$	24,233		$	19,576
Net income attributable to noncontrolling interests in property partnerships	$	17,549		$	18,204
FFO attributable to noncontrolling interests in property partnerships 6	$	35,202		$	35,686

Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)	$	1,245		$	1,457
Below-market rents (included within Other Liabilities)	$	21,095		$	22,962
Accrued rental income liability (included within Other Liabilities)	$	118,460		$	129,390

Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7	4.16			4.00
Interest Coverage Ratio (including capitalized interest) 7	3.60			3.50
Fixed Charge Coverage Ratio 8	3.31			2.81
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8	7.50			7.46
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9	5.5		%	17.9		%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9	4.8		%	10.2		%
FAD Payout Ratio 2	69.14		%	119.06		%
Operating Margins [(rental revenue - rental expense)/rental revenue]	63.5		%	64.0		%
Occupancy of In-Service Properties	89.1		%	88.8		%

Capitalization:
Consolidated Debt	$	13,010,124		$	12,896,609
BXP’s Share of Debt 10	$	13,078,509		$	12,923,917
Consolidated Market Capitalization	$	35,542,525		$	33,006,115
Consolidated Debt/Consolidated Market Capitalization	36.60		%	39.07		%
BXP’s Share of Market Capitalization 10	$	35,610,910		$	33,033,423
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10	36.73		%	39.12		%

_____________

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

2For the three months ended December 31, 2021, includes approximately $42.9 million of cash losses related to the early extinguishment of debt in connection with the early redemption of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that were scheduled to mature in February 2023. For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

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 March 31, 2022, see page 35.

6For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

7For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see page 30.

8For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see page 29.

9For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see pages 10, 62 and 63.

10For a quantitative reconciliation for March 31, 2022, see page 26.


			Q1 2022
			Consolidated Balance Sheets

(unaudited and in thousands)


	31-Mar-22		31-Dec-21
ASSETS
Real estate	$	22,472,940	$	22,298,103
Construction in progress	846,775		894,172
Land held for future development	582,511		560,355
Right of use assets - finance leases	237,501		237,507
Right of use assets - operating leases	169,248		169,778
Less accumulated depreciation	(5,995,760)		(5,883,961)
Total real estate	18,313,215		18,275,954
Cash and cash equivalents	436,271		452,692
Cash held in escrows	46,072		48,466
Investments in securities	36,032		43,632
Tenant and other receivables, net	56,132		70,186
Related party note receivable, net	78,544		78,336
Notes receivable, net	9,674		9,641
Accrued rental income, net	1,243,395		1,226,745
Deferred charges, net	609,205		618,798
Prepaid expenses and other assets	128,472		57,811
Investments in unconsolidated joint ventures	1,518,622		1,482,997
Total assets	$	22,475,634	$	22,365,258

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	3,268,745	$	3,267,914
Unsecured senior notes, net	9,486,379		9,483,695
Unsecured line of credit	255,000		145,000
Lease liabilities - finance leases	245,554		244,421
Lease liabilities - operating leases	204,677		204,561
Accounts payable and accrued expenses	304,576		320,775
Dividends and distributions payable	170,869		169,859
Accrued interest payable	90,861		94,796
Other liabilities	396,283		391,441
Total liabilities	14,422,944		14,322,462

Commitments and contingencies	—		—
Redeemable deferred stock units	11,031		9,568

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, 156,790,614 and 156,623,749 issued and 156,711,714 and 156,544,849 outstanding at March 31, 2022 and December 31, 2021, respectively	1,567		1,565
Additional paid-in capital	6,509,663		6,497,730
Dividends in excess of earnings	(636,421)		(625,891)
Treasury common stock at cost, 78,900 shares at March 31, 2022 and December 31, 2021	(2,722)		(2,722)
Accumulated other comprehensive loss	(28,485)		(36,662)
Total stockholders’ equity attributable to Boston Properties, Inc.	5,843,602		5,834,020

Noncontrolling interests:
Common units of the Operating Partnership	649,602		642,655
Property partnerships	1,548,455		1,556,553
Total equity	8,041,659		8,033,228
Total liabilities and equity	$	22,475,634	$	22,365,258


			Q1 2022
			Consolidated Income Statements

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	31-Mar-22		31-Dec-21
Revenue
Lease	$	718,120	$	690,912
Parking and other	21,734		23,087
Hotel revenue	4,557		6,227
Development and management services	5,831		7,516
Direct reimbursements of payroll and related costs from management services contracts	4,065		3,321
Total revenue	754,307		731,063
Expenses
Operating	138,723		129,615
Real estate taxes	131,527		127,125
Demolition costs	5		38
Hotel operating	4,840		5,005
General and administrative 1	43,194		33,649
Payroll and related costs from management services contracts	4,065		3,321
Transaction costs	—		2,066
Depreciation and amortization	177,624		177,521
Total expenses	499,978		478,340
Other income (expense)
Income (loss) from unconsolidated joint ventures	2,189		(825)
Gains on sales of real estate	22,701		115,556
Gains (losses) from investments in securities 1	(2,262)		1,882
Interest and other income (loss)	1,228		1,564
Losses from early extinguishments of debt	—		(44,284)
Interest expense	(101,228)		(103,331)
Net income	176,957		223,285
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships	(17,549)		(18,204)
Noncontrolling interest - common units of the Operating Partnership 2	(16,361)		(20,544)
Net income attributable to Boston Properties, Inc.	$	143,047	$	184,537


INCOME PER SHARE OF COMMON STOCK (EPS)

Net income attributable to Boston Properties, Inc. per share - basic	$	0.91	$	1.18
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.91	$	1.18

_____________

1General and administrative expense includes $(2.3) million and $1.9 million and Gains (losses) from investments in securities include $(2.3) million and $1.9 million for the three months ended March 31, 2022 and December 31, 2021, respectively, related to the Company’s deferred compensation plan.

2For additional detail, see page 6.


			Q1 2022
			Funds from operations (FFO) 1

(unaudited and dollars in thousands, except per share amounts)


	Three Months Ended
	31-Mar-22			31-Dec-21
Net income attributable to Boston Properties, Inc.	$	143,047		$	184,537
Add:
Noncontrolling interest - common units of the Operating Partnership	16,361			20,544
Noncontrolling interests in property partnerships	17,549			18,204
Net income	176,957			223,285
Add:
Depreciation and amortization expense	177,624			177,521
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	(17,653)			(17,482)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	22,044			20,401
Corporate-related depreciation and amortization	(404)			(426)
Less:
Gains on sales of real estate	22,701			115,556
Noncontrolling interests in property partnerships	17,549			18,204
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO)	318,318			269,539
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	32,182			26,576
FFO attributable to Boston Properties, Inc.	$	286,136		$	242,963

Boston Properties, Inc.’s percentage share of Basic FFO	89.89		%	90.14		%
Noncontrolling interest’s - common unitholders percentage share of Basic FFO	10.11		%	9.86		%
Basic FFO per share	$	1.83		$	1.55
Weighted average shares outstanding - basic	156,650			156,297
Diluted FFO per share	$	1.82		$	1.55
Weighted average shares outstanding - diluted	157,004			156,654

RECONCILIATION TO DILUTED FFO


	Three Months Ended
	31-Mar-22		31-Dec-21
Basic FFO	$	318,318	$	269,539
Add:
Effect of dilutive securities - stock-based compensation	—		—
Diluted FFO	318,318		269,539
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO	32,118		29,389
Boston Properties, Inc.’s share of Diluted FFO	$	286,200	$	240,150

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO


	Three Months Ended
	31-Mar-22		31-Dec-21
Shares/units for Basic FFO	174,276		173,390
Add:
Effect of dilutive securities - stock-based compensation (shares/units)	354		357
Shares/units for Diluted FFO	174,630		173,747
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)	17,626		17,093
Boston Properties, Inc.’s share of shares/units for Diluted FFO	157,004		156,654

Boston Properties, Inc.’s percentage share of Diluted FFO	89.91	%	90.16	%

_____________

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

2For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2022, see page 35.


			Q1 2022
			Funds available for distributions (FAD) 1

(dollars in thousands)


	Three Months Ended
	31-Mar-22			31-Dec-21
Net income attributable to Boston Properties, Inc.	$	143,047		$	184,537
Add:
Noncontrolling interest - common units of the Operating Partnership	16,361			20,544
Noncontrolling interests in property partnerships	17,549			18,204
Net income	176,957			223,285
Add:
Depreciation and amortization expense	177,624			177,521
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2	(17,653)			(17,482)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3	22,044			20,401
Corporate-related depreciation and amortization	(404)			(426)
Less:
Gains on sales of real estate	22,701			115,556
Noncontrolling interests in property partnerships	17,549			18,204
Basic FFO	318,318			269,539
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4	(1,769)			3,408
BXP’s Share of hedge amortization 1	1,446			1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5	889			877
Stock-based compensation	20,914			7,466
Non-real estate depreciation	404			426
Unearned portion of capitalized fees from consolidated joint ventures 6	593			1,598
Non-cash losses from early extinguishments of debt	—			1,433
Less:
BXP’s Share of straight-line rent 1	35,103			30,129
BXP’s Share of fair value lease revenue 1, 7	2,185			2,058

BXP’s Share of 2nd generation tenant improvements and leasing commissions 1	45,591			83,011
BXP’s Share of maintenance capital expenditures 1, 8	9,848			27,743
Hotel improvements, equipment upgrades and replacements	36			57
Funds available for distribution to common shareholders and common unitholders (FAD) (A) 9	$	248,032		$	143,195

Distributions to common shareholders and unitholders (excluding any special distributions) (B)	$	171,497		$	170,492

FAD Payout Ratio1 (B÷A)	69.14		%	119.06		%

_____________

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

2For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2022, 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 2024 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.

9For the three months ended December 31, 2021, includes approximately $42.9 million of cash losses related to the early extinguishment of debt in connection with the early redemption of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that were scheduled to mature in February 2023.


			Q1 2022
			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
	31-Mar-22		31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders	$	143,047	$	91,624
Preferred stock redemption charge	—		6,412
Preferred dividends	—		2,560
Net income attributable to Boston Properties, Inc.	143,047		100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	16,361		11,084
Noncontrolling interest in property partnerships	17,549		16,467
Net income	176,957		128,147
Add:
Interest expense	101,228		107,902
Losses from early extinguishments of debt	—		898

Depreciation and amortization expense	177,624		176,565
Transaction costs	—		331
Payroll and related costs from management services contracts	4,065		3,505
General and administrative expense	43,194		44,959
Less:
Interest and other income (loss)	1,228		1,168
Gains (losses) from investments in securities	(2,262)		1,659
Gains on sales of real estate	22,701		—
Income from unconsolidated joint ventures	2,189		5,225
Direct reimbursements of payroll and related costs from management services contracts	4,065		3,505
Development and management services revenue	5,831		6,803
Net Operating Income (NOI)	469,316		443,947
Add:
BXP’s share of NOI from unconsolidated joint ventures 1	37,321		24,795
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2	47,055		44,376
BXP’s Share of NOI	459,582		424,366
Less:
Termination income	2,078		4,269
BXP’s share of termination income from unconsolidated joint ventures 1	606		—
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2	221		(6)
BXP’s Share of NOI (excluding termination income)	$	457,119	$	420,091

Net Operating Income (NOI)	$	469,316	$	443,947
Less:
Termination income	2,078		4,269
NOI from non Same Properties (excluding termination income) 3	13,396		7,273
Same Property NOI (excluding termination income)	453,842		432,405
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2	46,834		44,382
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	1,590		880
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1	36,715		24,795
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	10,155		1,173
BXP’s Share of Same Property NOI (excluding termination income)	$	435,158	$	412,525

_____________

1For a quantitative reconciliation for the three months ended March 31, 2022, see page 61.

2For a quantitative reconciliation for the three months ended March 31, 2022, 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 March 31, 2022 and therefore are no longer a part of the Company’s property portfolio.


			Q1 2022
			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
	31-Mar-22		31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders	$	143,047	$	91,624
Preferred stock redemption charge	—		6,412
Preferred dividends	—		2,560
Net income attributable to Boston Properties, Inc.	143,047		100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	16,361		11,084
Noncontrolling interest in property partnerships	17,549		16,467
Net income	176,957		128,147
Add:
Interest expense	101,228		107,902
Losses from early extinguishments of debt	—		898

Depreciation and amortization expense	177,624		176,565
Transaction costs	—		331
Payroll and related costs from management services contracts	4,065		3,505
General and administrative expense	43,194		44,959
Less:
Interest and other income (loss)	1,228		1,168
Gains (losses) from investments in securities	(2,262)		1,659
Gains on sales of real estate	22,701		—
Income from unconsolidated joint ventures	2,189		5,225
Direct reimbursements of payroll and related costs from management services contracts	4,065		3,505
Development and management services revenue	5,831		6,803
Net Operating Income (NOI)	469,316		443,947
Less:
Straight-line rent	22,186		7,730
Fair value lease revenue	1,655		653
Termination income	2,078		4,269
Add:
Straight-line ground rent expense adjustment 1	576		765
Lease transaction costs that qualify as rent inducements 2	(4,583)		1,859
NOI - cash (excluding termination income)	439,390		433,919
Less:
NOI - cash from non Same Properties (excluding termination income) 3	5,827		23,829
Same Property NOI - cash (excluding termination income)	433,563		410,090
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4	43,366		49,973
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	1,161		8,517
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5	22,759		25,363
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	2,227		1,121
BXP’s Share of Same Property NOI - cash (excluding termination income)	$	411,890	$	392,876

_____________

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 $168 and $167 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2024 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 2024 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.

4For a quantitative reconciliation for the three months ended March 31, 2022, see page 59.

5For a quantitative reconciliation for the three months ended March 31, 2022, see page 61.


			Q1 2022
			Same property net operating income (NOI) by reportable segment

(dollars in thousands)


	Office 1								Hotel & Residential
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-22		31-Mar-21		Change		Change		31-Mar-22		31-Mar-21		Change		Change
Rental Revenue 2	$	708,288	$	682,889					$	17,523	$	9,807
Less: Termination income	2,078		4,269						—		—
Rental revenue (excluding termination income) 2	706,210		678,620		$	27,590	4.1	%	17,523		9,807		$	7,716	78.7	%
Less: Operating expenses and real estate taxes	258,619		247,844		10,775		4.3	%	11,272		8,178		3,094		37.8	%
NOI (excluding termination income) 2, 3	$	447,591	$	430,776	$	16,815	3.9	%	$	6,251	$	1,629	$	4,622	283.7	%

Rental revenue (excluding termination income) 2	$	706,210	$	678,620	$	27,590	4.1	%	$	17,523	$	9,807	$	7,716	78.7	%
Less: Straight-line rent and fair value lease revenue	16,216		24,907		(8,691)		(34.9)	%	56		33		23		69.7	%
Add: Lease transaction costs that qualify as rent inducements 4	(4,583)		1,859		(6,442)		(346.5)	%	—		—		—		—	%
Subtotal	685,411		655,572		29,839		4.6	%	17,467		9,774		7,693		78.7	%
Less: Operating expenses and real estate taxes	258,619		247,844		10,775		4.3	%	11,272		8,178		3,094		37.8	%
Add: Straight-line ground rent expense 5	576		766		(190)		(24.8)	%	—		—		—		—	%
NOI - cash (excluding termination income) 2, 3	$	427,368	$	408,494	$	18,874	4.6	%	$	6,195	$	1,596	$	4,599	288.2	%

	Consolidated Total 1 (A)								BXP’s share of Unconsolidated Joint Ventures (B)
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-22		31-Mar-21		Change		Change		31-Mar-22		31-Mar-21		Change		Change
Rental Revenue 2	$	725,811	$	692,696					$	44,541	$	39,985
Less: Termination income	2,078		4,269						606		—
Rental revenue (excluding termination income) 2	723,733		688,427		$	35,306	5.1	%	43,935		39,985		$	3,950	9.9	%
Less: Operating expenses and real estate taxes	269,891		256,022		13,869		5.4	%	17,375		16,363		1,012		6.2	%
NOI (excluding termination income) 2, 3	$	453,842	$	432,405	$	21,437	5.0	%	$	26,560	$	23,622	$	2,938	12.4	%

Rental revenue (excluding termination income) 2	$	723,733	$	688,427	$	35,306	5.1	%	$	43,935	$	39,985	$	3,950	9.9	%
Less: Straight-line rent and fair value lease revenue	16,272		24,940		(8,668)		(34.8)	%	6,531		1,033		5,498		532.2	%
Add: Lease transaction costs that qualify as rent inducements 4	(4,583)		1,859		(6,442)		(346.5)	%	358		1,419		(1,061)		(74.8)	%
Subtotal	$	702,878	$	665,346	37,532		5.6	%	37,762		40,371		(2,609)		(6.5)	%
Less: Operating expenses and real estate taxes	269,891		256,022		13,869		5.4	%	17,375		16,363		1,012		6.2	%
Add: Straight-line ground rent expense 5	576		766		(190)		(24.8)	%	145		234		(89)		(38.0)	%
NOI - cash (excluding termination income) 2, 3	$	433,563	$	410,090	$	23,473	5.7	%	$	20,532	$	24,242	$	(3,710)	(15.3)	%

	Partners’ share of Consolidated Joint Ventures (C)								BXP’s Share 3, 6, 7, 8
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-22		31-Mar-21		Change		Change		31-Mar-22		31-Mar-21		Change		Change
Rental Revenue 2	$	75,130	$	74,072					$	695,222	$	658,609
Less: Termination income	221		(6)						2,463		4,275
Rental revenue (excluding termination income) 2	74,909		74,078		$	831	1.1	%	692,759		654,334		$	38,425	5.9	%
Less: Operating expenses and real estate taxes	29,665		30,576		(911)		(3.0)	%	257,601		241,809		15,792		6.5	%
NOI (excluding termination income) 2, 3	$	45,244	$	43,502	$	1,742	4.0	%	$	435,158	$	412,525	$	22,633	5.5	%

Rental revenue (excluding termination income) 2	$	74,909	$	74,078	$	831	1.1	%	$	692,759	$	654,334	$	38,425	5.9	%
Less: Straight-line rent and fair value lease revenue	596		2,297		(1,701)		(74.1)	%	22,207		23,676		(1,469)		(6.2)	%
Add: Lease transaction costs that qualify as rent inducements 4	(2,443)		251		(2,694)		(1,073.3)	%	(1,782)		3,027		(4,809)		(158.9)	%
Subtotal	71,870		72,032		(162)		(0.2)	%	668,770		633,685		35,085		5.5	%
Less: Operating expenses and real estate taxes	29,665		30,576		(911)		(3.0)	%	257,601		241,809		15,792		6.5	%
Add: Straight-line ground rent expense 5	—		—		—		—	%	721		1,000		(279)		(27.9)	%
NOI - cash (excluding termination income) 2, 3	$	42,205	$	41,456	$	749	1.8	%	$	411,890	$	392,876	$	19,014	4.8	%

___________________

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 $168 and $167 for the three months ended March 31, 2022 and 2021, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.


			Q1 2022
			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 $22,633, compared to Q1 2021. Included in Q1 2022 is BXP’s Share of approximately $2,249 associated with the reinstatement of accrued rent balances that the Company determined were probable of collection. Included in the Q1 2021 comparison are approximately $693 in write-offs associated with accrued rent, net and $(200) in write-offs associated with associated with accounts receivable, net. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $2,742. For additional information, see page 56.

8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $19,014, compared to Q1 2021. Included in Q1 2021 is BXP’s Share of $(200) of write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $7,489 in Q1 2022 compared to Q1 2021. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $7,289. For additional information, see page 56.


			Q1 2022
			Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES


	Three Months Ended
	31-Mar-22		31-Dec-21
Maintenance capital expenditures	$	10,652	$	33,919
Planned capital expenditures associated with acquisition properties	—		—
Repositioning capital expenditures	6,243		—
Hotel improvements, equipment upgrades and replacements	36		57
Subtotal	16,931		33,976
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)	719		180
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs	—		1,023
BXP’s share of repositioning capital expenditures from unconsolidated JVs	—		—
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs	1,523		6,356
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs	—		—
Partners’ share of repositioning capital expenditures from consolidated JVs	2,223		—
BXP’s Share of Capital Expenditures 1	$	13,904	$	28,823

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2


	Three Months Ended
	31-Mar-22		31-Dec-21
Square feet	1,057,074		1,422,236
Tenant improvements and lease commissions PSF	$	54.99	$	75.03

___________________

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

2Includes 100% of unconsolidated joint ventures.


			Q1 2022
			Acquisitions and dispositions

For the period from January 1, 2022 through March 31, 2022

(dollars in thousands)

ACQUISITIONS

Investment

Property

Location

Date Acquired

Square Feet

Initial

Anticipated Future

Total

In-service Leased (%)

N/A

—

Total Acquisitions

—

DISPOSITIONS


Property	Location	Date Disposed	Square Feet	Gross Sales Price		Net Cash Proceeds		Book Gain
195 West Street	Waltham, MA	March 31, 2022	63,500	$	37,700	$	35,397	$	22,701
Total Dispositions			63,500	$	37,700	$	35,397	$	22,701


			Q1 2022
			Construction in progress

as of March 31, 2022

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1


		Actual/Estimated				BXP’s share
		Initial Occupancy	Stabilization Date		Square Feet	Investment to Date 2		Estimated Total Investment 2		Total Financing		Amount Drawn at 3/31/2022		Estimated Future Equity Requirement 2		Percentage Leased 3			Percentage placed in-service 4		Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties				Location
Office
	325 Main Street	Q3 2022	Q3 2022	Cambridge, MA	420,000	$	328,547	$	418,400	$	—	$	—	$	89,853	90	%		—	%	N/A
	Reston Next	Q4 2021	Q4 2023	Reston, VA	1,062,000	538,075		715,300		—		—		177,225		87	%		67	%	$	4,776
	2100 Pennsylvania Avenue	Q3 2022	Q3 2024	Washington, DC	480,000	252,049		356,100		—		—		104,051		61	%		—	%	N/A
	360 Park Avenue South (42% ownership) 6	Q3 2023	Q1 2025	New York, NY	450,000	195,333		219,000		92,774		85,588		16,481		—	%		—	%	N/A
	Platform16 Building A (55% ownership) 7	Q2 2025	Q4 2026	San Jose, CA	389,500	65,199		231,900		—		—		166,701		—	%		—	%	N/A
	Total Office Properties under Construction				2,801,500	1,379,203		1,940,700		92,774		85,588		554,311		57	%		25	%	$	4,776

Lab/Life Sciences
	880 Winter Street (Redevelopment)	Q4 2022	Q1 2023	Waltham, MA	244,000	47,522		108,000		—		—		60,478		85	%		—	%	N/A
	751 Gateway (49% ownership)	Q2 2024	Q2 2024	South San Francisco, CA	231,000	55,892		127,600		—		—		71,708		100	%		—	%	N/A
	103 CityPoint	Q4 2023	Q3 2024	Waltham, MA	113,000	16,156		115,100		—		—		98,944		—	%		—	%	N/A
	180 CityPoint	Q4 2023	Q4 2024	Waltham, MA	329,000	66,272		274,700		—		—		208,428		43	%		—	%	N/A
	651 Gateway (50% ownership)	Q4 2023	Q4 2025	South San Francisco, CA	327,000	5,227		146,500		—		—		141,273		—	%		—	%	N/A
	Total Lab/Life Sciences Properties under Construction				1,244,000	191,069		771,900		—		—		580,831		47	%		—	%	—

Other
	View Boston Observatory at The Prudential Center (Redevelopment)	Q2 2023	N/A	Boston, MA	59,000	81,617		182,300		—		—		100,683		N/A			—	%	N/A
Total Properties Under Construction					4,104,500	$	1,651,889	$	2,894,900	$	92,774	$	85,588	$	1,235,825	54	%	8	17	%	$	4,776

________________

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 April 29, 2022, 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 March 31, 2022. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 52.

6Investment to Date includes all related costs incurred prior to the contribution of the property by the Company to the joint venture on December 15, 2021 totaling approximately $107 million and the Company’s proportionate share of the loan. The Company’s joint venture partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the joint venture partners will fund required capital according to their percentage interests.

7Estimated total investment represents the costs to complete Building A, a 389,500 square foot building, and Building A’s proportionate share of land and garage costs. In conjunction with the construction of Building A, garage and site work will be completed for Phase II, which will support approximately 700,000 square feet of development in two office buildings, budgeted to be an incremental $141 million.

8Total percentage leased excludes Other.


			Q1 2022
			Land parcels and purchase options

as of March 31, 2022

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 Francisco, CA		850,000
San Jose, CA (55% Ownership)		698,000
Santa Clara, CA		632,000
Washington, DC (50% ownership)		520,000
South San Francisco, CA (50% Ownership)		451,000
Springfield, VA		422,000
Waltham, MA		365,000
Dulles, VA		310,000
El Segundo, CA (50% Ownership)		275,000
Rockville, MD 3, 4		202,000
Total		13,512,000

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
Total		3,900,000

__________________

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 pages 20-23.

4Includes three buildings that are currently vacant at Shady Grove Innovation District in Rockville, Maryland. The Company intends to reposition these three vacant buildings, totaling 202,000 square feet, to support life science 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.


			Q1 2022
			Leasing activity

for the three months ended March 31, 2022

ALL IN-SERVICE PROPERTIES


Net (increase)/decrease in available space (SF)	Total
Vacant space available at the beginning of the period	5,340,029
Less:
Property dispositions/properties taken out of service 1	95,180
Add:

Properties placed (and partially placed) in-service 2	410,690
Leases expiring or terminated during the period	1,097,803
Total space available for lease	6,753,342

1st generation leases	552,730
2nd generation leases with new tenants	687,656
2nd generation lease renewals	369,418
Total space leased	1,609,804

Vacant space available for lease at the end of the period	5,143,538
Net (increase)/decrease in available space	196,491


Second generation leasing information: 3
Leases commencing during the period (SF)	1,057,074
Weighted average lease term (months)	71
Weighted average free rent period (days)	135
Total transaction costs per square foot 4	$54.99
Increase (decrease) in gross rents 5	(2.36)	%
Increase (decrease) in net rents 6	(4.34)	%


	All leases (SF)			Incr (decr) in 2nd generation cash rents				Total square feet of leases executed in the quarter 8
	1st generation	2nd generation	total 7	gross 5		net 6
Boston	140,944	227,829	368,773	5.53	%	7.72	%	350,767
Los Angeles	—	79,996	79,996	0.69	%	1.04	%	12,306
New York	—	267,169	267,169	(10.14)	%	(20.12)	%	434,340
San Francisco	—	181,943	181,943	6.07	%	8.18	%	199,268
Seattle	—	3,397	3,397	—		—		—
Washington, DC	411,786	296,740	708,526	(1.98)	%	(2.19)	%	182,911
Total / Weighted Average	552,730	1,057,074	1,609,804	(2.36)	%	(4.34)	%	1,179,592

_____________

1Total square feet of properties taken out of service in Q1 2022 consists of 95,180 at 651 Gateway.

2Total square feet of properties placed (and partially placed) in-service in Q1 2022 consists of 410,690 at Reston Next.

3Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,057,074 square feet of second generation leases that commenced in Q1 2022, leases for 735,157 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 734,025 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.

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 734,025 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.

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 321,917.


			Q1 2022
			Portfolio overview

for the three months ended March 31, 2022

(dollars in thousands)

Rentable square footage of in-service properties by location and unit type 1, 2


	Office		Retail		Residential		Hotel		Total
Boston	14,099,481		1,056,365		550,114		330,000		16,035,960
Los Angeles	2,183,318		126,377		—		—		2,309,695
New York	11,334,521		417,849		—		—		11,752,370
San Francisco	6,994,229		351,284		318,171		—		7,663,684
Seattle	748,462		18,761		—		—		767,223
Washington, DC	9,016,767		672,330		822,436		—		10,511,533
Total	44,376,778		2,642,966		1,690,721		330,000		49,040,465
% of Total	90.49	%	5.39	%	3.45	%	0.67	%	100.00	%

Rental revenue of in-service properties by unit type 1


	Office			Retail			Residential			Hotel 3			Total
Consolidated	$	674,058		$	53,573		$	12,323		$	4,457		$	744,411
Less:
Partners’ share from consolidated joint ventures 4	68,293			8,856			—			—			77,149
Add:
BXP’s share from unconsolidated joint ventures 5	52,200			3,410			2,444			—			58,054
BXP’s Share of Rental revenue 1	$	657,965		$	48,127		$	14,767		$	4,457		$	725,316
% of Total	90.71		%	6.64		%	2.04		%	0.61		%	100.00		%

Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 6


	CBD		Suburban		Total
Boston	25.90	%	7.06	%	32.96	%
Los Angeles	3.00	%	—	%	3.00	%
New York	24.99	%	2.24	%	27.23	%
San Francisco	17.79	%	2.33	%	20.12	%
Seattle	0.43	%	—	%	0.43	%
Washington, DC	4.81	%	11.45	%	16.26	%
Total	76.92	%	23.08	%	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.


			Q1 2022
			Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS


	Residential 1				Hotel
	Three Months Ended				Three Months Ended
	31-Mar-22		31-Dec-21		31-Mar-22		31-Dec-21
Rental Revenue 2	$	12,966	$	12,836	$	4,557	$	6,227
Less: Operating expenses and real estate taxes	6,432		6,344		4,840		5,005
Net Operating Income (NOI) 2	6,534		6,492		(283)		1,222
Add: BXP’s share of NOI from unconsolidated joint ventures	1,647		1,288		N/A		N/A
BXP’s Share of NOI 2	$	8,181	$	7,780	$	(283)	$	1,222

Rental Revenue 2	$	12,966	$	12,836	$	4,557	$	6,227
Less: Straight line rent and fair value lease revenue	54		(26)		2		5
Add: Lease transaction costs that qualify as rent inducements	—		—		—		—
Subtotal	12,912		12,862		4,555		6,222
Less: Operating expenses and real estate taxes	6,432		6,344		4,840		5,005
NOI - cash basis 2	6,480		6,518		(285)		1,217
Add: BXP’s share of NOI-cash from unconsolidated joint ventures	1,647		1,288		N/A		N/A
BXP’s Share of NOI - cash basis 2	$	8,127	$	7,806	$	(285)	$	1,217

RENTAL RATES AND OCCUPANCY - Year-over-Year


	Residential Units	Three Months Ended						Percent Change
		31-Mar-22			31-Mar-21
BOSTON

Hub50House (50% ownership), Boston, MA 2	440
Average Monthly Rental Rate		$	3,890		$	3,260		19.33	%
Average Rental Rate Per Occupied Square Foot		$	5.42		$	4.52		19.91	%
Average Physical Occupancy		94.09		%	56.82		%	65.59	%
Average Economic Occupancy		92.20		%	49.78		%	85.21	%

Proto Kendall Square, Cambridge, MA 2, 3	280
Average Monthly Rental Rate		$	2,743		$	2,585		6.11	%
Average Rental Rate Per Occupied Square Foot		$	5.04		$	4.78		5.44	%
Average Physical Occupancy		93.57		%	90.36		%	3.55	%
Average Economic Occupancy		93.14		%	88.81		%	4.88	%

The Lofts at Atlantic Wharf, Boston, MA 2, 3	86
Average Monthly Rental Rate		$	3,933		$	3,474		13.21	%
Average Rental Rate Per Occupied Square Foot		$	4.36		$	3.99		9.27	%
Average Physical Occupancy		96.12		%	87.60		%	9.73	%
Average Economic Occupancy		95.61		%	84.00		%	13.82	%

Boston Marriott Cambridge (437 rooms), Cambridge, MA 3	N/A
Average Occupancy		40.40		%	10.90		%	270.64	%
Average Daily Rate		$	266.10		$	123.11		116.15	%
Revenue Per Available Room		$	91.38		$	13.43		580.42	%

SAN FRANCISCO

The Skylyne, Oakland, CA 2, 4	402
Average Monthly Rental Rate		$	3,342		$	2,953		13.17	%
Average Rental Rate Per Occupied Square Foot		$	4.03		$	3.55		13.52	%
Average Physical Occupancy		71.48		%	15.84		%	351.26	%
Average Economic Occupancy		68.59		%	9.08		%	655.40	%


			Q1 2022
			Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year


	Residential Units	Three Months Ended						Percent Change
		31-Mar-22			31-Mar-21
WASHINGTON, DC

Signature at Reston, Reston, VA 2, 3	508
Average Monthly Rental Rate		$	2,580		$	2,265		13.91	%
Average Rental Rate Per Occupied Square Foot		$	2.66		$	2.36		12.71	%
Average Physical Occupancy		94.16		%	80.05		%	17.63	%
Average Economic Occupancy		93.50		%	75.56		%	23.74	%

The Avant at Reston Town Center, Reston, VA 2, 3	359
Average Monthly Rental Rate		$	2,340		$	2,287		2.32	%
Average Rental Rate Per Occupied Square Foot		$	2.55		$	2.51		1.59	%
Average Physical Occupancy		94.15		%	91.36		%	3.05	%
Average Economic Occupancy		94.02		%	90.17		%	4.27	%

Total In-Service Residential Units	2,075

_____________

1Includes retail space.

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

3Excludes retail space.

4This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.


			Q1 2022
			In-service property listing

as of March 31, 2022

Sub Market

Number of Buildings

Square Feet

Leased % 1

Annualized Rental Obligations Per Leased SF 2

BOSTON

Office

200 Clarendon Street

CBD Boston MA

1,768,775

97.2

76.50