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bxp-20230425

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): April 25, 2023

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 April 25, 2023, 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 2023. 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, 2023.
*99.2						Press release dated April 25, 2023.
*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: April 25, 2023

Document

Exhibit 99.1

https://cdn.kscope.io/b00a89b39607486ebfae0c030784d291-a290binney.jpg

https://cdn.kscope.io/b00a89b39607486ebfae0c030784d291-bxp-colorb.gif

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2023

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP’s portfolio totals 54.5 million square feet and 192 properties, including 15 properties under construction/redevelopment. BXP’s properties include 171 office properties, 14 retail properties (including 2 retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP 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 clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner. BXP has earned an eleventh 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 statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increasing interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, including the ongoing war in Ukraine, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease, such as the COVID-19 global pandemic on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), 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, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) 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 otherwise 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 54.

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 58.

GENERAL INFORMATION


Corporate Headquarters	Trading Symbol	Investor Relations	Inquiries
800 Boylston Street	BXP	BXP	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 290 Binney Street, Cambridge, MA)


			Q1 2023
			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			11
Acquisitions and Dispositions			12

DEVELOPMENT ACTIVITY
Construction in Progress			13
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 Clients Listing and Portfolio Client 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
Seattle			45
Washington, DC			47
CBD			49
Suburban			51

RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage			53
Definitions			54
Reconciliations			58
Consolidated Income Statement - Prior Year			66


			Q1 2023
			Company profile

SNAPSHOT

(as of March 31, 2023)


Fiscal Year-End			December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment)			192
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment)			54.5 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			175.5 million
Closing Price, at the end of the quarter			$54.12 per share
Dividend - Quarter/Annualized			$0.98/$3.92 per share
Dividend Yield			7.2%
Consolidated Market Capitalization 2			$24.2 billion
BXP’s Share of Market Capitalization 2, 3			$24.5 billion
Unsecured 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:

•continue to embrace our leadership position in the premier workplace segment and leverage our strength in portfolio quality, client relationships, development skills, market penetration, and sustainability to profitably build market share;

•maintain a keen focus on select dynamic gateway 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 premier workplaces) 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, marketing, legal, 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 clients and (4) develop and manage our assets in the most sustainable manner possible;

•pursue attractive asset class adjacencies where we have a track record of success, such as life sciences and residential development;

•maintain a leadership position in sustainability innovation to minimize emissions from BXP’s development and in-service portfolio, as well as to provide clients sustainable solutions for their space use needs;

•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 clients, as well as the counterparty of choice for real estate industry participants.

MANAGEMENT

Board of Directors

Owen D. Thomas

Chairman of the Board

Owen D. Thomas

Chief Executive Officer

Douglas T. Linde

President

Kelly A. Ayotte

Lead Independent Director

Raymond A. Ritchey

Senior Executive Vice President

Bruce W. Duncan

Michael E. LaBelle

Executive Vice President, Chief Financial Officer and Treasurer

Carol B. Einiger

Donna D. Garesche

Executive Vice President, Chief Human Resources Officer

Diane J. Hoskins

Chair of Sustainability Committee

Bryan J. Koop

Executive Vice President, Boston Region

Mary E. Kipp

Robert E. Pester

Executive Vice President, San Francisco Region

Joel I. Klein

Chair of Compensation Committee

Hilary Spann

Executive Vice President, New York Region

Matthew J. Lustig

Chair of Nominating & Corporate Governance Committee

Peter V. Otteni

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

David A. Twardock

Chair of Audit Committee

John J. Stroman

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

William H. Walton, III

Jonathan D. Lange

Senior Vice President, Los Angeles Region

Eric G. Kevorkian

Senior Vice President, Chief Legal Officer and Secretary

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 54.


			Q1 2023
			Guidance and assumptions

GUIDANCE

BXP’s guidance for the second quarter 2023 and full year 2023 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, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on April 25, 2023 and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) 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. BXP 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 56. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.


			Second Quarter 2023				Full Year 2023
			Low		High		Low		High
Projected EPS (diluted)			$	0.59	$	0.61	$	2.30	$	2.36
	Add:
		Projected Company share of real estate depreciation and amortization	1.20		1.20		4.84		4.84

Projected FFO per share (diluted)			$	1.79	$	1.81	$	7.14	$	7.20

ASSUMPTIONS

(dollars in thousands)


		Full Year 2023
			Low			High
Operating property activity:
	Average In-service portfolio occupancy		88.00		%	89.50		%
	Increase in BXP’s Share of Same Property net operating income (excluding termination income)		(0.50)		%	0.50		%
	Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income)		1.00		%	2.50		%
	BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales)		$	100,000		$	108,000
	BXP’s Share of incremental net operating income related to asset sales over prior year		$	(30,000)		$	(28,000)
	BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue)		$	110,000		$	125,000
	Termination income		$	3,000		$	5,000

Other revenue (expense):
	Development, management services and other revenue		$	32,000		$	36,000
	General and administrative expense 1		$	(164,000)		$	(157,000)
	Consolidated net interest expense 2		$	(525,000)		$	(515,000)

Noncontrolling interest:
	Noncontrolling interest in property partnerships’ share of FFO		$	(153,000)		$	(148,000)

_______________

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

2 Excludes $(97M) - $(94M) for full year 2023 of BXP’s share of projected interest expense from unconsolidated joint ventures.


			Q1 2023
			Financial highlights

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


	Three Months Ended
	31-Mar-23			31-Dec-22
Net income attributable to Boston Properties, Inc.	$	77,890		$	121,790
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.50		$	0.78
FFO attributable to Boston Properties, Inc. 1	$	271,951		$	292,940
Diluted FFO per share 1	$	1.73		$	1.86
Dividends per common share	$	0.98		$	0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2	$	245,861		$	236,218

Selected items:
Revenue	$	803,200		$	789,824
Recoveries from clients	$	134,010		$	121,750
Service income from clients	$	2,227		$	3,044
BXP’s Share of revenue 3	$	789,411		$	772,897
BXP’s Share of straight-line rent 3	$	23,863		$	31,029
BXP’s Share of fair value lease revenue 3, 4	$	4,579		$	3,841
BXP’s Share of termination income 3	$	900		$	2,320

Ground rent expense	$	3,810		$	2,794
Capitalized interest	$	10,589		$	12,082
Capitalized wages	$	4,491		$	4,054
Loss from unconsolidated joint ventures	$	(7,569)		$	(58,451)
BXP’s share of FFO from unconsolidated joint ventures 5	$	18,076		$	16,880
Net income attributable to noncontrolling interests in property partnerships	$	18,660		$	19,961
FFO attributable to noncontrolling interests in property partnerships 6	$	36,371		$	37,396

Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)	$	3,844		$	4,182
Below-market rents (included within Other Liabilities)	$	48,694		$	52,628
Accrued rental income liability (included within Other Liabilities)	$	127,005		$	124,436

Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7	3.27			3.57
Interest Coverage Ratio (including capitalized interest) 7	3.00			3.22
Fixed Charge Coverage Ratio 7	2.67			2.77
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8	7.78			7.56
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9	0.4		%	0.1		%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9	4.8		%	2.6		%
FAD Payout Ratio 2	69.98		%	72.62		%
Operating Margins [(rental revenue - rental expense)/rental revenue]	62.7		%	63.2		%
Occupancy % of In-Service Properties 10	88.6		%	88.6		%
Leased % of In-Service Properties 11	91.0		%	91.5		%

Capitalization:
Consolidated Debt	$	14,709,436		$	14,240,336
BXP’s Share of Debt 12	$	14,955,407		$	14,482,308
Consolidated Market Capitalization	$	24,206,901		$	26,064,674
Consolidated Debt/Consolidated Market Capitalization	60.77		%	54.63		%
BXP’s Share of Market Capitalization 12	$	24,452,872		$	26,306,646
BXP’s Share of Debt/BXP’s Share of Market Capitalization 12	61.16		%	55.05		%

_____________

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 54.

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, 2023, see page 35.

6For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

7For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see page 30.

8For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see page 29.

9For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see pages 10, 64 and 65.

10Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

11Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates.

12For a quantitative reconciliation for March 31, 2023, see page 26.


			Q1 2023
			Consolidated Balance Sheets

(unaudited and in thousands)


	31-Mar-23		31-Dec-22
ASSETS
Real estate	$	24,314,813	$	24,261,588
Construction in progress	618,770		406,574
Land held for future development	626,137		721,501
Right of use assets - finance leases	237,503		237,510
Right of use assets - operating leases	166,699		167,351
Less accumulated depreciation	(6,424,547)		(6,298,082)
Total real estate	19,539,375		19,496,442
Cash and cash equivalents	918,952		690,333
Cash held in escrows	45,330		46,479
Investments in securities	32,099		32,277
Tenant and other receivables, net	85,603		81,389
Related party note receivable, net	78,544		78,576
Sales-type lease receivable, net	13,028		12,811
Accrued rental income, net	1,297,767		1,276,580
Deferred charges, net	720,174		733,282
Prepaid expenses and other assets	141,933		43,589
Investments in unconsolidated joint ventures	1,752,617		1,715,911
Total assets	$	24,625,422	$	24,207,669

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	3,273,553	$	3,272,368
Unsecured senior notes, net	10,240,967		10,237,968
Unsecured line of credit	—		—
Unsecured term loan, net	1,194,916		730,000
Lease liabilities - finance leases	250,567		249,335
Lease liabilities - operating leases	204,435		204,686
Accounts payable and accrued expenses	397,798		417,545
Dividends and distributions payable	171,427		170,643
Accrued interest payable	114,400		103,774
Other liabilities	465,276		450,918
Total liabilities	16,313,339		15,837,237

Commitments and contingencies	—		—
Redeemable deferred stock units	5,599		6,613

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, 156,908,693 and 156,836,767 issued and 156,829,793 and 156,757,867 outstanding at March 31, 2023 and December 31, 2022, respectively	1,568		1,568
Additional paid-in capital	6,549,314		6,539,147
Dividends in excess of earnings	(467,159)		(391,356)
Treasury common stock at cost, 78,900 shares at March 31, 2023 and December 31, 2022	(2,722)		(2,722)
Accumulated other comprehensive loss	(18,214)		(13,718)
Total stockholders’ equity attributable to Boston Properties, Inc.	6,062,787		6,132,919

Noncontrolling interests:
Common units of the Operating Partnership	691,627		683,583
Property partnerships	1,552,070		1,547,317
Total equity	8,306,484		8,363,819
Total liabilities and equity	$	24,625,422	$	24,207,669


			Q1 2023
			Consolidated Income Statements

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	31-Mar-23		31-Dec-22
Revenue
Lease	$	756,875	$	739,094
Parking and other	23,064		26,088
Insurance proceeds	945		903
Hotel revenue	8,101		11,087
Development and management services	8,980		8,406
Direct reimbursements of payroll and related costs from management services contracts	5,235		4,246
Total revenue	803,200		789,824
Expenses
Operating	147,182		144,668
Real estate taxes	139,432		135,529
Demolition costs	2,275		203
Restoration expenses related to insurance claims	2,419		1,865
Hotel operating	6,671		7,646
General and administrative 1	55,802		36,000
Payroll and related costs from management services contracts	5,235		4,246
Transaction costs	911		759
Depreciation and amortization	208,734		198,330
Total expenses	568,661		529,246
Other income (expense)
Loss from unconsolidated joint ventures 2	(7,569)		(58,451)
Gains on sales of real estate	—		55,726
Gain on sales-type lease 3	—		10,058
Gains from investments in securities 1	1,665		2,096
Unrealized gain (loss) on non-real estate investment	259		(150)
Interest and other income (loss)	10,941		5,789

Interest expense	(134,207)		(119,923)
Net income	105,628		155,723
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships	(18,660)		(19,961)
Noncontrolling interest - common units of the Operating Partnership 4	(9,078)		(13,972)
Net income attributable to Boston Properties, Inc.	$	77,890	$	121,790


INCOME PER SHARE OF COMMON STOCK (EPS)

Net income attributable to Boston Properties, Inc. per share - basic	$	0.50	$	0.78
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.50	$	0.78

_____________

1General and administrative expense includes $1.7 million and $2.1 million and Gains from investments in securities include $1.7 million and $2.1 million for the three months ended March 31, 2023 and December 31, 2022, respectively, related to the Company’s deferred compensation plan.

2For the three months ended December 31, 2022, includes a $50.7 million non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest.

3The Company amended and modified a ground lease with a hotel developer that originally was classified and accounted for as an operating lease due to certain termination provisions. Upon modification, the 99-year ground lease, of which approximately 97 years remain, was reclassified as a sales-type lease. As a result, during the three months ended December 31, 2022, the Company derecognized the underlying asset resulting in a gain on sales-type lease of approximately $10.1 million. The hotel developer intends to construct a 267-room hotel on the land.

4For additional detail, see page 6.


			Q1 2023
			Funds from operations (FFO) 1

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


	Three Months Ended
	31-Mar-23			31-Dec-22
Net income attributable to Boston Properties, Inc.	$	77,890		$	121,790
Add:
Noncontrolling interest - common units of the Operating Partnership	9,078			13,972
Noncontrolling interests in property partnerships	18,660			19,961
Net income	105,628			155,723
Add:
Depreciation and amortization expense	208,734			198,330
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	(17,711)			(17,435)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	25,645			24,626
Corporate-related depreciation and amortization	(469)			(431)
Impairment loss included within loss from unconsolidated joint ventures	—			50,705
Less:
Gains on sales of real estate	—			55,726
Gain on sales-type lease	—			10,058
Unrealized gain (loss) on non-real estate investment	259			(150)
Noncontrolling interests in property partnerships	18,660			19,961
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO)	302,908			325,923
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	30,957			32,983
FFO attributable to Boston Properties, Inc.	$	271,951		$	292,940

Boston Properties, Inc.’s percentage share of Basic FFO	89.78		%	89.88		%
Noncontrolling interest’s - common unitholders percentage share of Basic FFO	10.22		%	10.12		%
Basic FFO per share	$	1.73		$	1.87
Weighted average shares outstanding - basic	156,803			156,773
Diluted FFO per share	$	1.73		$	1.86
Weighted average shares outstanding - diluted	157,043			157,112

RECONCILIATION TO DILUTED FFO


	Three Months Ended
	31-Mar-23		31-Dec-22
Basic FFO	$	302,908	$	325,923
Add:
Effect of dilutive securities - stock-based compensation	—		—
Diluted FFO	302,908		325,923
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO	30,927		33,687
Boston Properties, Inc.’s share of Diluted FFO	$	271,981	$	292,236

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO


	Three Months Ended
	31-Mar-23		31-Dec-22
Shares/units for Basic FFO	174,652		174,423
Add:
Effect of dilutive securities - stock-based compensation (shares/units)	240		339
Shares/units for Diluted FFO	174,892		174,762
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)	17,849		17,650
Boston Properties, Inc.’s share of shares/units for Diluted FFO	157,043		157,112

Boston Properties, Inc.’s percentage share of Diluted FFO	89.79	%	89.90	%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2023, see page 35.


			Q1 2023
			Funds available for distributions (FAD) 1

(dollars in thousands)


	Three Months Ended
	31-Mar-23			31-Dec-22
Net income attributable to Boston Properties, Inc.	$	77,890		$	121,790
Add:
Noncontrolling interest - common units of the Operating Partnership	9,078			13,972
Noncontrolling interests in property partnerships	18,660			19,961
Net income	105,628			155,723
Add:
Depreciation and amortization expense	208,734			198,330
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2	(17,711)			(17,435)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3	25,645			24,626
Corporate-related depreciation and amortization	(469)			(431)
Impairment loss included within loss from unconsolidated joint ventures	—			50,705
Less:
Gains on sales of real estate	—			55,726
Gain on sales-type lease	—			10,058
Unrealized gain (loss) on non-real estate investment	259			(150)
Noncontrolling interests in property partnerships	18,660			19,961
Basic FFO	302,908			325,923
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4	5,519			11,711
BXP’s Share of hedge amortization, net of costs 1	1,750			1,751
BXP’s share of fair value interest adjustment 1	499			250
BXP’s Share of straight-line ground rent expense adjustment 1, 5	543			404
Stock-based compensation	25,935			7,496
Non-real estate depreciation	469			431
Unearned portion of capitalized fees from consolidated joint ventures 6	622			1,135

Less:
BXP’s Share of straight-line rent 1	23,863			31,029
BXP’s Share of fair value lease revenue 1, 7	4,579			3,841

BXP’s Share of 2nd generation tenant improvements and leasing commissions 1	45,155			55,613
BXP’s Share of maintenance capital expenditures 1, 8	18,508			22,229
Amortization and accretion related to sales type lease	226			—
Hotel improvements, equipment upgrades and replacements	53			171
Funds available for distribution to common shareholders and common unitholders (FAD) (A)	$	245,861		$	236,218

Distributions to common shareholders and unitholders (excluding any special distributions) (B)	$	172,054		$	171,548

FAD Payout Ratio1 (B÷A)	69.98		%	72.62		%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2023, 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 60 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.


			Q1 2023
			Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)


	Three Months Ended
	31-Mar-23		31-Mar-22
Net income attributable to Boston Properties, Inc.	$	77,890	$	143,047
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	9,078		16,361
Noncontrolling interest in property partnerships	18,660		17,549
Net income	105,628		176,957
Add:
Interest expense	134,207		101,228



Depreciation and amortization expense	208,734		177,624
Transaction costs	911		—
Payroll and related costs from management services contracts	5,235		4,065
General and administrative expense	55,802		43,194
Less:
Interest and other income (loss)	10,941		1,228
Unrealized gain on non-real estate investment	259		—
Gains (losses) from investments in securities	1,665		(2,262)
Income (loss) from unconsolidated joint ventures	(7,569)		2,189

Gains on sales of real estate	—		22,701
Direct reimbursements of payroll and related costs from management services contracts	5,235		4,065
Development and management services revenue	8,980		5,831
Net Operating Income (NOI)	491,006		469,316
Add:
BXP’s share of NOI from unconsolidated joint ventures 1	40,756		37,321
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2	47,097		47,055
BXP’s Share of NOI	484,665		459,582
Less:
Termination income	195		2,078
BXP’s share of termination income from unconsolidated joint ventures 1	877		606
Add:
Partners’ share of termination income from consolidated joint ventures 2	172		221
BXP’s Share of NOI (excluding termination income)	$	483,765	$	457,119

Net Operating Income (NOI)	$	491,006	$	469,316
Less:
Termination income	195		2,078
NOI from non Same Properties (excluding termination income) 3	42,921		21,598
Same Property NOI (excluding termination income)	447,890		445,640
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2	46,925		46,834
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	—		—
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1	39,879		36,715
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	3,849		448
BXP’s Share of Same Property NOI (excluding termination income)	$	436,995	$	435,073

_____________

1For a quantitative reconciliation for the three months ended March 31, 2023, see page 63.

2For a quantitative reconciliation for the three months ended March 31, 2023, see pages 60-61.

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, 2023 and therefore are no longer a part of the Company’s property portfolio.


			Q1 2023
			Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)


	Three Months Ended
	31-Mar-23		31-Mar-22
Net income attributable to Boston Properties, Inc.	$	77,890	$	143,047
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	9,078		16,361
Noncontrolling interest in property partnerships	18,660		17,549
Net income	105,628		176,957
Add:
Interest expense	134,207		101,228



Depreciation and amortization expense	208,734		177,624
Transaction costs	911		—
Payroll and related costs from management services contracts	5,235		4,065
General and administrative expense	55,802		43,194
Less:

Interest and other income (loss)	10,941		1,228
Unrealized gain on non-real estate investment	259		—
Gains (losses) from investments in securities	1,665		(2,262)
Income (loss) from unconsolidated joint ventures	(7,569)		2,189

Gains on sales of real estate	—		22,701
Direct reimbursements of payroll and related costs from management services contracts	5,235		4,065
Development and management services revenue	8,980		5,831
Net Operating Income (NOI)	491,006		469,316
Less:
Straight-line rent	24,806		22,186
Fair value lease revenue	3,596		1,655
Amortization and accretion related to sales type lease	226		—
Termination income	195		2,078
Add:
Straight-line ground rent expense adjustment 1	591		576
Lease transaction costs that qualify as rent inducements 2	5,386		(4,583)
NOI - cash (excluding termination income)	468,160		439,390
Less:
NOI - cash from non Same Properties (excluding termination income) 3	33,115		13,269
Same Property NOI - cash (excluding termination income)	435,045		426,121
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4	43,321		43,366
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	—		—
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5	36,510		22,759
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	3,067		(243)
BXP’s Share of Same Property NOI - cash (excluding termination income)	$	425,167	$	405,757

_____________

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 $(190) and $168 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the Company has remaining lease payments aggregating approximately $24.7 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, 2023, see page 61.

5For a quantitative reconciliation for the three months ended March 31, 2023, see page 63.


			Q1 2023
			Same property net operating income (NOI) by reportable segment

(dollars in thousands)


	Office 1								Hotel & Residential
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-23		31-Mar-22		Change		Change		31-Mar-23		31-Mar-22		Change		Change
Rental Revenue 2	$	710,263	$	698,322					$	19,827	$	14,585
Less: Termination income	195		2,078						—		—
Rental revenue (excluding termination income) 2	710,068		696,244		$	13,824	2.0	%	19,827		14,585		$	5,242	35.9	%
Less: Operating expenses and real estate taxes	269,871		255,164		14,707		5.8	%	12,134		10,025		2,109		21.0	%
NOI (excluding termination income) 2, 3	$	440,197	$	441,080	$	(883)	(0.2)	%	$	7,693	$	4,560	$	3,133	68.7	%

Rental revenue (excluding termination income) 2	$	710,068	$	696,244	$	13,824	2.0	%	$	19,827	$	14,585	$	5,242	35.9	%
Less: Straight-line rent and fair value lease revenue	17,455		15,475		1,980		12.8	%	12		16		(4)		(25.0)	%
Add: Lease transaction costs that qualify as rent inducements 4	4,031		(4,604)		8,635		187.6	%	—		—		—		—	%
Subtotal	696,644		676,165		20,479		3.0	%	19,815		14,569		5,246		36.0	%
Less: Operating expenses and real estate taxes	269,871		255,164		14,707		5.8	%	12,134		10,025		2,109		21.0	%
Add: Straight-line ground rent expense 5	591		576		15		2.6	%	—		—		—		—	%
NOI - cash (excluding termination income) 2, 3	$	427,364	$	421,577	$	5,787	1.4	%	$	7,681	$	4,544	$	3,137	69.0	%

	Consolidated Total 1 (A)								BXP’s share of Unconsolidated Joint Ventures (B)
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-23		31-Mar-22		Change		Change		31-Mar-23		31-Mar-22		Change		Change
Rental Revenue 2	$	730,090	$	712,907					$	59,108	$	57,363
Less: Termination income	195		2,078						866		606
Rental revenue (excluding termination income) 2	729,895		710,829		$	19,066	2.7	%	58,242		56,757		$	1,485	2.6	%
Less: Operating expenses and real estate taxes	282,005		265,189		16,816		6.3	%	22,212		20,490		1,722		8.4	%
NOI (excluding termination income) 2, 3	$	447,890	$	445,640	$	2,250	0.5	%	$	36,030	$	36,267	$	(237)	(0.7)	%

Rental revenue (excluding termination income) 2	$	729,895	$	710,829	$	19,066	2.7	%	$	58,242	$	56,757	$	1,485	2.6	%
Less: Straight-line rent and fair value lease revenue	17,467		15,491		1,976		12.8	%	3,047		13,780		(10,733)		(77.9)	%
Add: Lease transaction costs that qualify as rent inducements 4	4,031		(4,604)		8,635		187.6	%	318		370		(52)		(14.1)	%
Subtotal	$	716,459	$	690,734	25,725		3.7	%	55,513		43,347		12,166		28.1	%
Less: Operating expenses and real estate taxes	282,005		265,189		16,816		6.3	%	22,212		20,490		1,722		8.4	%
Add: Straight-line ground rent expense 5	591		576		15		2.6	%	142		145		(3)		(2.1)	%
NOI - cash (excluding termination income) 2, 3	$	435,045	$	426,121	$	8,924	2.1	%	$	33,443	$	23,002	$	10,441	45.4	%

	Partners’ share of Consolidated Joint Ventures (C)								BXP’s Share 2, 6
	Three Months Ended				$		%		Three Months Ended				$		%
	31-Mar-23		31-Mar-22		Change		Change		31-Mar-23		31-Mar-22		Change		Change
Rental Revenue 2	$	79,243	$	77,149					$	709,955	$	693,121
Less: Termination income	172		221						889		2,463
Rental revenue (excluding termination income) 2	79,071		76,928		$	2,143	2.8	%	709,066		690,658		$	18,408	2.7	%
Less: Operating expenses and real estate taxes	32,146		30,094		2,052		6.8	%	272,071		255,585		16,486		6.5	%
NOI (excluding termination income) 2, 3	$	46,925	$	46,834	$	91	0.2	%	$	436,995	$	435,073	$	1,922	0.4	%

Rental revenue (excluding termination income) 2	$	79,071	$	76,928	$	2,143	2.8	%	$	709,066	$	690,658	$	18,408	2.7	%
Less: Straight-line rent and fair value lease revenue	3,789		1,025		2,764		269.7	%	16,725		28,246		(11,521)		(40.8)	%
Add: Lease transaction costs that qualify as rent inducements 4	185		(2,443)		2,628		107.6	%	4,164		(1,791)		5,955		332.5	%
Subtotal	75,467		73,460		2,007		2.7	%	696,505		660,621		35,884		5.4	%
Less: Operating expenses and real estate taxes	32,146		30,094		2,052		6.8	%	272,071		255,585		16,486		6.5	%
Add: Straight-line ground rent expense 5	—		—		—		—	%	733		721		12		1.7	%
NOI - cash (excluding termination income) 2, 3	$	43,321	$	43,366	$	(45)	(0.1)	%	$	425,167	$	405,757	$	19,410	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 54.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. 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 $(190) and $168 for the three months ended March 31, 2023 and 2022, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

6BXP’s Share equals (A) + (B) - (C).


			Q1 2023
			Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES


	Three Months Ended
	31-Mar-23		31-Dec-22
Maintenance capital expenditures	$	21,455	$	25,813
Planned capital expenditures associated with acquisition properties	38		—
Repositioning capital expenditures	3,455		6,127
Hotel improvements, equipment upgrades and replacements	53		171
Subtotal	25,001		32,111
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)	269		784
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs	1,718		444
BXP’s share of repositioning capital expenditures from unconsolidated JVs	—		—
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs	3,216		4,368
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs	—		—
Partners’ share of repositioning capital expenditures from consolidated JVs	301		1,688
BXP’s Share of Capital Expenditures 1	$	23,471	$	27,283

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2


	Three Months Ended
	31-Mar-23		31-Dec-22
Square feet	775,445		1,038,282
Tenant improvements and lease commissions PSF	$	72.81	$	82.25

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2Includes 100% of unconsolidated joint ventures.


			Q1 2023
			Acquisitions and dispositions

For the period from January 1, 2023 through March 31, 2023

(dollars in thousands)

ACQUISITIONS


				Investment
Property	Location	Date Acquired	Square Feet	Initial		Anticipated Future		Total		In-service Leased (%)
13100 and 13150 Worldgate Drive (50% ownership) 1	Herndon, VA	January 31, 2023	N/A	$	17,000	$	—	$	17,000	N/A


Total Acquisitions			—	$	17,000	$	—	$	17,000	—	%

DISPOSITIONS

Property

Location

Date Disposed

Square Feet

Gross Sales Price

Net Cash Proceeds

Book Gain

N/A

—

Total Dispositions

—

________________

1Consists of two vacant office buildings aggregating approximately 350,000 rentable square feet and a 1,200-space structured parking deck situated on a 10-acre site. The joint venture intends to redevelop the property for residential use and the vacant properties are not reflected in the Company’s in-service property listing. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.


			Q1 2023
			Construction in progress

as of March 31, 2023

(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 3/31/2023		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
	140 Kendrick - Building A	Q3 2023	Q3 2023	Needham, MA	104,000	$	19,133	$	26,600	$	—	$	—	$	7,467	100	%		—	%	N/A
	2100 Pennsylvania Avenue	Q2 2022	Q3 2024	Washington, DC	480,000	334,638		375,900		—		—		41,262		84	%		64	%	$	3,414
	360 Park Avenue South (42% ownership) 6	Q1 2024	Q4 2025	New York, NY	450,000	206,950		248,000		92,774		89,677		37,953		—	%		—	%	N/A
	Reston Next Office Phase II	Q2 2024	Q2 2025	Reston, VA	90,000	29,578		61,000		—		—		31,422		—	%		—	%	N/A
	Platform16 Building A (55% ownership) 7	Q2 2025	Q4 2026	San Jose, CA	389,500	93,161		231,900		—		—		138,739		—	%		—	%	N/A
	Total Office Properties under Construction				1,513,500	683,460		943,400		92,774		89,677		256,843		34	%		20	%	3,414

Lab/Life Sciences
	751 Gateway (49% ownership)	Q2 2024	Q2 2024	South San Francisco, CA	231,000	95,636		127,600		—		—		31,964		100	%		—	%	N/A
	103 CityPoint	Q1 2024	Q3 2024	Waltham, MA	113,000	60,312		115,100		—		—		54,788		—	%		—	%	N/A
	180 CityPoint	Q1 2024	Q4 2024	Waltham, MA	329,000	168,668		274,700		—		—		106,032		43	%		—	%	N/A
	300 Binney Street	Q1 2025	Q1 2025	Cambridge, MA	236,000	14,914		210,200		—		—		195,286		100	%		—	%	N/A
	105 Carnegie Center Redevelopment	Q4 2024	Q2 2025	Princeton, NJ	73,000	1,030		40,600		—		—		39,570		—	%		—	%	N/A
	651 Gateway (50% ownership)	Q1 2024	Q4 2025	South San Francisco, CA	327,000	46,074		146,500		—		—		100,426		7	%		—	%	N/A
	290 Binney Street	Q2 2026	Q2 2026	Cambridge, MA	566,000	124,026		1,185,200		—		—		1,061,174		100	%		—	%	N/A
	Total Lab/Life Sciences Properties under Construction				1,875,000	510,660		2,099,900		—		—		1,589,240		64	%		—	%	N/A

Residential
	Reston Next Residential (508 units) (20% ownership)	Q2 2024	Q2 2026	Reston, VA	417,000	11,509		47,700		28,000		5,045		13,236		—	%		—	%	N/A
	Total Residential Property under Construction				417,000	11,509		47,700		28,000		5,045		13,236		—	%		—	%	N/A
Retail
	760 Boylston Street (Redevelopment)	Q2 2024	Q2 2024	Boston, MA	118,000	4,047		43,800		—		—		39,753		100	%		—	%	N/A
	Reston Next Retail	Q2 2025	Q4 2025	Reston, VA	33,000	18,495		26,600		—		—		8,105		—	%		—	%	N/A
	Total Retail Property under Construction				151,000	22,542		70,400		—		—		47,858		78	%		—		N/A

Other
	View Boston Observatory at The Prudential Center (Redevelopment)	Q2 2023	N/A	Boston, MA	59,000	161,945		182,300		—		—		20,355		N/A			—	%	N/A
Total Properties Under Construction					4,015,500	$	1,390,116	$	3,343,700	$	120,774	$	94,722	$	1,927,532	52	%	8	7	%	$	3,414


			Q1 2023
			Construction in progress (continued)

PROJECTS FULLY PLACED IN-SERVICE DURING 2023

Actual/Estimated

BXP’s share

Estimated Total Investment 2

Amount Drawn at 3/31/2023

Estimated Future Equity Requirement 2

Net Operating Income (Loss) 5 (BXP’s share)

Initial Occupancy

Stabilization Date

Square feet

Investment to Date 2

Total Financing

Percentage Leased 3

Location

N/A

—

N/A

Total Projects Fully Placed In-Service

—

________________

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 21, 2023, 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, 2023. 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 54.

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 $118 million remaining to spend.

8Total percentage leased excludes Residential and Other.


			Q1 2023
			Land parcels and purchase options

as of March 31, 2023

OWNED LAND PARCELS



Location	Approximate Developable Square Feet 1
Reston, VA 1		2,229,000
San Jose, CA 2		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
Herndon, VA (50% ownership) 3		350,000
El Segundo, CA (50% ownership)		275,000
Lexington, MA 2		259,000
Rockville, MD 2		252,000
Dulles, VA		150,000
Total		13,302,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS



Location	Approximate Developable Square Feet 1
Cambridge, MA 4		887,000
Boston, MA		1,300,000
Waltham, MA 5		1,200,000
Total		3,387,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

2Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 20-23.

3On January 31, 2023, The Company acquired a 50% share of available land that consists of two vacant office buildings aggregating approximately 350,000 rentable square feet and a 1,200-space structured parking deck situated on a 10-acre site. The joint venture intends to redevelop the property for residential use. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.

4In January 2023, the Company commenced the development of 290 Binney Street, an approximately 566,000 net rentable square feet laboratory/life sciences project in Cambridge, Massachusetts. 290 Binney Street is 100% pre-leased to AstraZeneca.

5The Company expects to be a 50% partner in the future development of these sites.


			Q1 2023
			Leasing activity

for the three months ended March 31, 2023

ALL IN-SERVICE PROPERTIES


Net (increase)/decrease in available space (SF)	Total
Vacant space available at the beginning of the period	5,610,777
Less:
Property dispositions/properties taken out of service 1	333,277
Add:


Leases expiring or terminated during the period	1,067,880
Total space available for lease	6,345,380

1st generation leases	—
2nd generation leases with new clients	432,003
2nd generation lease renewals	343,442
Total space leased	775,445

Vacant space available for lease at the end of the period	5,569,935
Net (increase)/decrease in available space	40,842


Second generation leasing information: 2
Leases commencing during the period (SF)	775,445
Weighted average lease term (months)	90
Weighted average free rent period (days)	175
Total transaction costs per square foot 3	$72.81
Increase (decrease) in gross rents 4	0.60	%
Increase (decrease) in net rents 5	0.81	%


	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 4, 6		net 5, 6
Boston	—	289,565	289,565	20.53	%	36.22	%	182,039
Los Angeles	—	55,042	55,042	11.73	%	19.18	%	25,910
New York	—	249,331	249,331	(5.04)	%	(8.63)	%	120,109
San Francisco	—	61,348	61,348	5.09	%	6.38	%	83,684
Seattle	—	2,214	2,214	10.79	%	16.32	%	—
Washington, DC	—	117,945	117,945	(34.11)	%	(46.58)	%	248,738
Total / Weighted Average	—	775,445	775,445	0.60	%	0.81	%	660,480

_____________

1Total vacant square feet of properties taken out of service in Q1 2023 consists of 195,191 at 300 Binney Street, 55,852 at 420 Bedford Street, 57,045 at 430 Bedford Street and 25,189 at 2098 Gaither Road.

2Second generation leases are defined as leases for space that has previously been leased. Of the 775,445 square feet of second generation leases that commenced in Q1 2023, leases for 588,547 square feet were signed in prior periods.

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

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 505,482 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 505,482 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

6Includes the renewal of a 68,950 square foot theater client. Excluding this renewal, the increase/(decrease) in second generation gross and net rent is (6.17)% and (8.82)% for Washington, DC and 3.87% and 6.37% for the total portfolio, respectively.

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 186,898.


			Q1 2023
			Portfolio overview

for the three months ended March 31, 2023

(dollars in thousands)

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


	Office		Retail		Residential		Hotel		Total
Boston	14,563,494		968,604		550,114		330,000		16,412,212
Los Angeles	2,186,700		126,377		—		—		2,313,077
New York	12,107,184		486,390		—		—		12,593,574
San Francisco	6,997,935		356,406		318,171		—		7,672,512
Seattle	1,507,450		26,472		—		—		1,533,922
Washington, DC	8,780,164		664,676		493,241		—		9,938,081
Total	46,142,927		2,628,925		1,361,526		330,000		50,463,378
% of Total	91.44	%	5.21	%	2.70	%	0.65	%	100.00	%

Rental revenue of in-service properties by unit type 1


	Office			Retail			Residential			Hotel 3			Total
Consolidated	$	716,948		$	52,910		$	11,126		$	8,001		$	788,985
Less:
Partners’ share from consolidated joint ventures 4	69,797			9,446			—			—			79,243
Add:
BXP’s share from unconsolidated joint ventures 5	59,686			2,943			2,631			—			65,260
BXP’s Share of Rental revenue 1	$	706,837		$	46,407		$	13,757		$	8,001		$	775,002
% of Total	91.20		%	5.99		%	1.78		%	1.03		%	100.00		%

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


	CBD		Suburban		Total
Boston	28.32	%	7.20	%	35.52	%
Los Angeles	2.73	%	—	%	2.73	%
New York	23.18	%	2.03	%	25.21	%
San Francisco	17.10	%	2.53	%	19.63	%
Seattle	2.72	%	—	%	2.72	%
Washington, DC	3.86	%	10.33	%	14.19	%
Total	77.91	%	22.09	%	100.00	%

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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 clients that is included in Retail.

4See page 61 for additional information.

5See page 63 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 2023
			Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS


	Residential 1				Hotel
	Three Months Ended				Three Months Ended
	31-Mar-23		31-Dec-22		31-Mar-23		31-Dec-22
Rental Revenue 2	$	11,726	$	12,963	$	8,101	$	11,087
Less: Operating expenses and real estate taxes	5,463		6,309		6,671		7,646
Net Operating Income (NOI) 2	6,263		6,654		1,430		3,441
Add: BXP’s share of NOI from unconsolidated joint ventures	1,751		1,648		N/A		N/A
BXP’s Share of NOI 2	$	8,014	$	8,302	$	1,430	$	3,441

Rental Revenue 2	$	11,726	$	12,963	$	8,101	$	11,087
Less: Straight line rent and fair value lease revenue	15		11		(2)		(2)
Add: Lease transaction costs that qualify as rent inducements	—		—		—		—
Subtotal	11,711		12,952		8,103		11,089
Less: Operating expenses and real estate taxes	5,463		6,309		6,671		7,646
NOI - cash basis 2