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bxp-20230801

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): August 1, 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 August 1, 2023, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the second quarter of 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 June 30, 2023.
*99.2						Press release dated August 1, 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: August 1, 2023

Document

Exhibit 99.1

https://cdn.kscope.io/551c0139f2cf5d243637d5b9440dc6b9-a2100penn.jpg

https://cdn.kscope.io/551c0139f2cf5d243637d5b9440dc6b9-bxp-colorb.gif

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 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 54.1 million square feet and 191 properties, including 13 properties under construction/redevelopment. BXP’s properties include 170 office properties, 14 retail properties (including two 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 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 2100 Pennsylvania Avenue, Washington, DC)


			Q2 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


			Q2 2023
			Company profile

SNAPSHOT

(as of June 30, 2023)


Fiscal Year-End			December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment)			191
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment)			54.1 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			175.5 million
Closing Price, at the end of the quarter			$57.59 per share
Dividend - Quarter/Annualized			$0.98/$3.92 per share
Dividend Yield			6.8%
Consolidated Market Capitalization 2			$25.6 billion
BXP’s Share of Market Capitalization 2, 3			$25.8 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

Joel I. Klein

Lead Independent Director;

Raymond A. Ritchey

Senior Executive Vice President

Chair of Compensation Committee

Michael E. LaBelle

Executive Vice President, Chief Financial Officer and Treasurer

Kelly A. Ayotte

Donna D. Garesche

Executive Vice President, Chief Human Resources Officer

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

Chair of Audit Committee

Peter V. Otteni

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

Matthew J. Lustig

Chair of Nominating & Corporate

Region

Governance Committee

John J. Stroman

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

William H. Walton, III

Region

Derek A. (Tony) West

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.


			Q2 2023
			Guidance and assumptions

GUIDANCE

BXP’s guidance for the third 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 August 1, 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.


			Third Quarter 2023				Full Year 2023
			Low		High		Low		High
Projected EPS (diluted)			$	0.63	$	0.65	$	2.42	$	2.47
	Add:
		Projected Company share of real estate depreciation and amortization	1.20		1.20		4.82		4.82

Projected FFO per share (diluted)			$	1.83	$	1.85	$	7.24	$	7.29

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		%
	Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income)		1.50		%	2.50		%
	BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales)		$	100,000		$	105,000
	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)		$	115,000		$	125,000
	Termination income		$	4,000		$	5,000

Other revenue (expense):
	Development, management services and other revenue		$	35,000		$	37,000
	General and administrative expense 1		$	(164,000)		$	(157,000)
	Consolidated net interest expense 2		$	(515,000)		$	(505,000)

Noncontrolling interest:
	Noncontrolling interest in property partnerships’ share of FFO		$	(154,000)		$	(151,000)

_______________

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.


			Q2 2023
			Financial highlights

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


	Three Months Ended
	30-Jun-23			31-Mar-23
Net income attributable to Boston Properties, Inc.	$	104,299		$	77,890
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.66		$	0.50
FFO attributable to Boston Properties, Inc. 1	$	292,844		$	271,951
Diluted FFO per share 1	$	1.86		$	1.73
Dividends per common share	$	0.98		$	0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2	$	248,588		$	245,861

Selected items:
Revenue	$	817,153		$	803,200
Recoveries from clients	$	129,528		$	134,010
Service income from clients	$	2,846		$	2,227
BXP’s Share of revenue 3	$	805,187		$	789,411
BXP’s Share of straight-line rent 3	$	24,927		$	23,863
BXP’s Share of fair value lease revenue 3, 4	$	6,776		$	4,579
BXP’s Share of termination income 3	$	3,225		$	900

Ground rent expense	$	3,441		$	3,810
Capitalized interest	$	10,564		$	10,589
Capitalized wages	$	4,580		$	4,491
Loss from unconsolidated joint ventures	$	(6,668)		$	(7,569)
BXP’s share of FFO from unconsolidated joint ventures 5	$	19,088		$	18,076
Net income attributable to noncontrolling interests in property partnerships	$	19,768		$	18,660
FFO attributable to noncontrolling interests in property partnerships 6	$	37,626		$	36,371

Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)	$	3,516		$	3,844
Below-market rents (included within Other Liabilities)	$	42,516		$	48,694
Accrued rental income liability (included within Other Liabilities)	$	123,212		$	127,005

Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7	3.18			3.27
Interest Coverage Ratio (including capitalized interest) 7	2.93			3.00
Fixed Charge Coverage Ratio 7	2.54			2.67
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8	7.31			7.78
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9	0.0		%	0.4		%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9	2.2		%	4.8		%
FAD Payout Ratio 2	69.23		%	69.98		%
Operating Margins [(rental revenue - rental expense)/rental revenue]	63.1		%	62.7		%
Occupancy % of In-Service Properties 10	88.3		%	88.6		%
Leased % of In-Service Properties 11	90.4		%	91.0		%

Capitalization:
Consolidated Debt	$	15,456,205		$	14,709,436
BXP’s Share of Debt 12	$	15,706,496		$	14,955,407
Consolidated Market Capitalization	$	25,563,883		$	24,206,901
Consolidated Debt/Consolidated Market Capitalization	60.46		%	60.77		%
BXP’s Share of Market Capitalization 12	$	25,814,174		$	24,452,872
BXP’s Share of Debt/BXP’s Share of Market Capitalization 12	60.84		%	61.16		%

_____________

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 June 30, 2023, see page 35.

6For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

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

8For a quantitative reconciliation for the three months ended June 30, 2023 and March 31, 2023, see page 29.

9For a quantitative reconciliation for the three months ended June 30, 2023 and March 31, 2023, see pages 10, 64 and 65.

10Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Excludes hotel and residential properties.

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

12For a quantitative reconciliation for June 30, 2023, see page 26.


			Q2 2023
			Consolidated Balance Sheets

(unaudited and in thousands)


	30-Jun-23		31-Mar-23
ASSETS
Real estate	$	24,642,681	$	24,314,813
Construction in progress	482,850		618,770
Land held for future development	637,191		626,137
Right of use assets - finance leases	237,526		237,503
Right of use assets - operating leases	166,421		166,699
Less accumulated depreciation	(6,568,568)		(6,424,547)
Total real estate	19,598,101		19,539,375
Cash and cash equivalents	1,581,575		918,952
Cash held in escrows	46,915		45,330
Investments in securities	33,481		32,099
Tenant and other receivables, net	91,968		85,603
Related party note receivable, net	88,834		78,544
Sales-type lease receivable, net	13,250		13,028
Accrued rental income, net	1,318,320		1,297,767
Deferred charges, net	710,820		720,174
Prepaid expenses and other assets	77,457		141,933
Investments in unconsolidated joint ventures	1,780,959		1,752,617
Total assets	$	25,341,680	$	24,625,422

LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net	$	3,274,764	$	3,273,553
Unsecured senior notes, net	10,985,395		10,240,967
Unsecured line of credit	—		—
Unsecured term loan, net	1,196,046		1,194,916
Lease liabilities - finance leases	251,874		250,567
Lease liabilities - operating leases	204,826		204,435
Accounts payable and accrued expenses	434,574		397,798
Dividends and distributions payable	171,465		171,427
Accrued interest payable	111,088		114,400
Other liabilities	418,813		465,276
Total liabilities	17,048,845		16,313,339

Commitments and contingencies	—		—
Redeemable deferred stock units	6,292		5,599

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, 156,932,300 and 156,908,693 issued and 156,853,400 and 156,829,793 outstanding at June 30, 2023 and March 31, 2023, respectively	1,569		1,568
Additional paid-in capital	6,561,161		6,549,314
Dividends in excess of earnings	(516,550)		(467,159)
Treasury common stock at cost, 78,900 shares at June 30, 2023 and March 31, 2023	(2,722)		(2,722)
Accumulated other comprehensive loss	(3,406)		(18,214)
Total stockholders’ equity attributable to Boston Properties, Inc.	6,040,052		6,062,787

Noncontrolling interests:
Common units of the Operating Partnership	689,123		691,627
Property partnerships	1,557,368		1,552,070
Total equity	8,286,543		8,306,484
Total liabilities and equity	$	25,341,680	$	24,625,422


			Q2 2023
			Consolidated Income Statements

(unaudited and in thousands, except per share amounts)


	Three Months Ended
	30-Jun-23		31-Mar-23
Revenue
Lease	$	761,733	$	756,875
Parking and other	26,054		23,064
Insurance proceeds	930		945
Hotel revenue	13,969		8,101
Development and management services	9,858		8,980
Direct reimbursements of payroll and related costs from management services contracts	4,609		5,235
Total revenue	817,153		803,200
Expenses
Operating	150,735		147,182
Real estate taxes	137,566		139,432
Demolition costs	738		2,275
Restoration expenses related to insurance claims	1,997		2,419
Hotel operating	8,161		6,671
General and administrative 1	44,175		55,802
Payroll and related costs from management services contracts	4,609		5,235
Transaction costs	308		911
Depreciation and amortization	202,577		208,734
Total expenses	550,866		568,661
Other income (expense)
Loss from unconsolidated joint ventures	(6,668)		(7,569)


Gains from investments in securities 1	1,571		1,665
Unrealized gain on non-real estate investment	124		259
Interest and other income (loss)	17,343		10,941

Interest expense	(142,473)		(134,207)
Net income	136,184		105,628
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships	(19,768)		(18,660)
Noncontrolling interest - common units of the Operating Partnership 2	(12,117)		(9,078)
Net income attributable to Boston Properties, Inc.	$	104,299	$	77,890


INCOME PER SHARE OF COMMON STOCK (EPS)

Net income attributable to Boston Properties, Inc. per share - basic	$	0.67	$	0.50
Net income attributable to Boston Properties, Inc. per share - diluted	$	0.66	$	0.50

_____________

1General and administrative expense includes $1.6 million and $1.7 million and Gains from investments in securities include $1.6 million and $1.7 million for the three months ended June 30, 2023 and March 31, 2023, respectively, related to the Company’s deferred compensation plan.

2For additional detail, see page 6.


			Q2 2023
			Funds from operations (FFO) 1

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


	Three Months Ended
	30-Jun-23			31-Mar-23
Net income attributable to Boston Properties, Inc.	$	104,299		$	77,890
Add:
Noncontrolling interest - common units of the Operating Partnership	12,117			9,078
Noncontrolling interests in property partnerships	19,768			18,660
Net income	136,184			105,628
Add:
Depreciation and amortization expense	202,577			208,734
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	(17,858)			(17,711)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	25,756			25,645
Corporate-related depreciation and amortization	(442)			(469)

Less:


Unrealized gain on non-real estate investment	124			259
Noncontrolling interests in property partnerships	19,768			18,660
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO)	326,325			302,908
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	33,481			30,957
FFO attributable to Boston Properties, Inc.	$	292,844		$	271,951

Boston Properties, Inc.’s percentage share of Basic FFO	89.74		%	89.78		%
Noncontrolling interest’s - common unitholders percentage share of Basic FFO	10.26		%	10.22		%
Basic FFO per share	$	1.87		$	1.73
Weighted average shares outstanding - basic	156,826			156,803
Diluted FFO per share	$	1.86		$	1.73
Weighted average shares outstanding - diluted	157,218			157,043

RECONCILIATION TO DILUTED FFO


	Three Months Ended
	30-Jun-23		31-Mar-23
Basic FFO	$	326,325	$	302,908
Add:
Effect of dilutive securities - stock-based compensation	—		—
Diluted FFO	326,325		302,908
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO	33,383		30,927
Boston Properties, Inc.’s share of Diluted FFO	$	292,942	$	271,981

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO


	Three Months Ended
	30-Jun-23		31-Mar-23
Shares/units for Basic FFO	174,748		174,652
Add:
Effect of dilutive securities - stock-based compensation (shares/units)	392		240
Shares/units for Diluted FFO	175,140		174,892
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)	17,922		17,849
Boston Properties, Inc.’s share of shares/units for Diluted FFO	157,218		157,043

Boston Properties, Inc.’s percentage share of Diluted FFO	89.77	%	89.79	%

_____________

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

2For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 2023, see page 35.


			Q2 2023
			Funds available for distributions (FAD) 1

(dollars in thousands)


	Three Months Ended
	30-Jun-23			31-Mar-23
Net income attributable to Boston Properties, Inc.	$	104,299		$	77,890
Add:
Noncontrolling interest - common units of the Operating Partnership	12,117			9,078
Noncontrolling interests in property partnerships	19,768			18,660
Net income	136,184			105,628
Add:
Depreciation and amortization expense	202,577			208,734
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2	(17,858)			(17,711)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3	25,756			25,645
Corporate-related depreciation and amortization	(442)			(469)

Less:


Unrealized gain on non-real estate investment	124			259
Noncontrolling interests in property partnerships	19,768			18,660
Basic FFO	326,325			302,908
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4	3,231			5,519
BXP’s Share of hedge amortization, net of costs 1	1,750			1,750
BXP’s share of fair value interest adjustment 1	499			499
BXP’s Share of straight-line ground rent expense adjustment 1, 5	811			543
Stock-based compensation	14,935			25,935
Non-real estate depreciation	442			469
Unearned portion of capitalized fees from consolidated joint ventures 6	957			622

Less:
BXP’s Share of straight-line rent 1	24,927			23,863
BXP’s Share of fair value lease revenue 1, 7	6,776			4,579

BXP’s Share of 2nd generation tenant improvements and leasing commissions 1	43,992			45,155
BXP’s Share of maintenance capital expenditures 1, 8	24,132			18,508
Amortization and accretion related to sales type lease	229			226
Hotel improvements, equipment upgrades and replacements	306			53
Funds available for distribution to common shareholders and common unitholders (FAD) (A)	$	248,588		$	245,861

Distributions to common shareholders and unitholders (excluding any special distributions) (B)	$	172,092		$	172,054

FAD Payout Ratio1 (B÷A)	69.23		%	69.98		%

_____________

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

2For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 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 2025 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.


			Q2 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
	30-Jun-23		30-Jun-22
Net income attributable to Boston Properties, Inc.	$	104,299	$	222,989
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	12,117		25,708
Noncontrolling interest in property partnerships	19,768		18,546
Net income	136,184		267,243
Add:
Interest expense	142,473		104,142



Depreciation and amortization expense	202,577		183,146
Transaction costs	308		496
Payroll and related costs from management services contracts	4,609		3,239
General and administrative expense	44,175		34,665
Less:
Other income - assignment fee	—		6,624
Interest and other income (loss)	17,343		1,195
Unrealized gain on non-real estate investment	124		—
Gains (losses) from investments in securities	1,571		(4,716)
Loss from unconsolidated joint ventures	(6,668)		(54)

Gains on sales of real estate	—		96,247
Direct reimbursements of payroll and related costs from management services contracts	4,609		3,239
Development and management services revenue	9,858		6,354
Net Operating Income (NOI)	503,489		484,042
Add:
BXP’s share of NOI from unconsolidated joint ventures 1	42,254		35,710
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2	47,958		47,862
BXP’s Share of NOI	497,785		471,890
Less:
Termination income	(164)		1,922
BXP’s share of termination income from unconsolidated joint ventures 1	3,113		(1)
Add:
Partners’ share of termination income from consolidated joint ventures 2	(276)		641
BXP’s Share of NOI (excluding termination income)	$	494,560	$	470,610

Net Operating Income (NOI)	$	503,489	$	484,042
Less:
Termination income	(164)		1,922
NOI from non Same Properties (excluding termination income) 3	47,480		26,993
Same Property NOI (excluding termination income)	456,173		455,127
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2	48,234		47,221
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	39,141		35,711
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	3,681		248
BXP’s Share of Same Property NOI (excluding termination income)	$	443,399	$	443,369

_____________

1For a quantitative reconciliation for the three months ended June 30, 2023, see page 63.

2For a quantitative reconciliation for the three months ended June 30, 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 June 30, 2023 and therefore are no longer a part of the Company’s property portfolio.


			Q2 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
	30-Jun-23		30-Jun-22
Net income attributable to Boston Properties, Inc.	$	104,299	$	222,989
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership	12,117		25,708
Noncontrolling interest in property partnerships	19,768		18,546
Net income	136,184		267,243
Add:
Interest expense	142,473		104,142



Depreciation and amortization expense	202,577		183,146
Transaction costs	308		496
Payroll and related costs from management services contracts	4,609		3,239
General and administrative expense	44,175		34,665
Less:
Other income - assignment fee	—		6,624
Interest and other income (loss)	17,343		1,195
Unrealized gain on non-real estate investment	124		—
Gains (losses) from investments in securities	1,571		(4,716)
Loss from unconsolidated joint ventures	(6,668)		(54)

Gains on sales of real estate	—		96,247
Direct reimbursements of payroll and related costs from management services contracts	4,609		3,239
Development and management services revenue	9,858		6,354
Net Operating Income (NOI)	503,489		484,042
Less:
Straight-line rent	26,493		21,601
Fair value lease revenue	5,850		1,919
Amortization and accretion related to sales type lease	229		—
Termination income	(164)		1,922
Add:
Straight-line ground rent expense adjustment 1	578		631
Lease transaction costs that qualify as rent inducements 2	3,402		4,452
NOI - cash (excluding termination income)	475,061		463,683
Less:
NOI - cash from non Same Properties (excluding termination income) 3	34,102		22,510
Same Property NOI - cash (excluding termination income)	440,959		441,173
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4	43,732		46,996
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	35,250		26,426
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3	2,832		248
BXP’s Share of Same Property NOI - cash (excluding termination income)	$	429,645	$	420,355

_____________

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 $91 and $115 for the three months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company has remaining lease payments aggregating approximately $24.4 million, all of which it expects to incur by the end of 2025 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 2025 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 June 30, 2023, see page 61.

5For a quantitative reconciliation for the three months ended June 30, 2023, see page 63.


			Q2 2023
			Same property net operating income (NOI) by reportable segment

(dollars in thousands)


	Office 1								Hotel & Residential
	Three Months Ended				$		%		Three Months Ended				$		%
	30-Jun-23		30-Jun-22		Change		Change		30-Jun-23		30-Jun-22		Change		Change
Rental Revenue 2	$	713,880	$	699,101					$	26,222	$	25,912
Less: Termination income	(164)		1,789						—		—
Rental revenue (excluding termination income) 2	714,044		697,312		$	16,732	2.4	%	26,222		25,912		$	310	1.2	%
Less: Operating expenses and real estate taxes	270,149		253,044		17,105		6.8	%	13,944		15,053		(1,109)		(7.4)	%
NOI (excluding termination income) 2, 3	$	443,895	$	444,268	$	(373)	(0.1)	%	$	12,278	$	10,859	$	1,419	13.1	%

Rental revenue (excluding termination income) 2	$	714,044	$	697,312	$	16,732	2.4	%	$	26,222	$	25,912	$	310	1.2	%
Less: Straight-line rent and fair value lease revenue	19,187		18,933		254		1.3	%	7		104		(97)		(93.3)	%
Add: Lease transaction costs that qualify as rent inducements 4	3,402		4,493		(1,091)		(24.3)	%	—		(41)		41		100.0	%
Subtotal	698,259		682,872		15,387		2.3	%	26,215		25,767		448		1.7	%
Less: Operating expenses and real estate taxes	270,149		253,044		17,105		6.8	%	13,944		15,053		(1,109)		(7.4)	%
Add: Straight-line ground rent expense 5	578		631		(53)		(8.4)	%	—		—		—		—	%
NOI - cash (excluding termination income) 2, 3	$	428,688	$	430,459	$	(1,771)	(0.4)	%	$	12,271	$	10,714	$	1,557	14.5	%

	Consolidated Total 1 (A)								BXP’s share of Unconsolidated Joint Ventures (B)
	Three Months Ended				$		%		Three Months Ended				$		%
	30-Jun-23		30-Jun-22		Change		Change		30-Jun-23		30-Jun-22		Change		Change
Rental Revenue 2	$	740,102	$	725,013					$	61,871	$	56,360
Less: Termination income	(164)		1,789						3,113		(1)
Rental revenue (excluding termination income) 2	740,266		723,224		$	17,042	2.4	%	58,758		56,361		$	2,397	4.3	%
Less: Operating expenses and real estate taxes	284,093		268,097		15,996		6.0	%	23,298		20,898		2,400		11.5	%
NOI (excluding termination income) 2, 3	$	456,173	$	455,127	$	1,046	0.2	%	$	35,460	$	35,463	$	(3)	—	%

Rental revenue (excluding termination income) 2	$	740,266	$	723,224	$	17,042	2.4	%	$	58,758	$	56,361	$	2,397	4.3	%
Less: Straight-line rent and fair value lease revenue	19,194		19,037		157		0.8	%	3,292		9,517		(6,225)		(65.4)	%
Add: Lease transaction costs that qualify as rent inducements 4	3,402		4,452		(1,050)		(23.6)	%	108		87		21		24.1	%
Subtotal	724,474		708,639		15,835		2.2	%	55,574		46,931		8,643		18.4	%
Less: Operating expenses and real estate taxes	284,093		268,097		15,996		6.0	%	23,298		20,898		2,400		11.5	%
Add: Straight-line ground rent expense 5	578		631		(53)		(8.4)	%	142		145		(3)		(2.1)	%
NOI - cash (excluding termination income) 2, 3	$	440,959	$	441,173	$	(214)	—	%	$	32,418	$	26,178	$	6,240	23.8	%

	Partners’ share of Consolidated Joint Ventures (C)								BXP’s Share 2, 6
	Three Months Ended				$		%		Three Months Ended				$		%
	30-Jun-23		30-Jun-22		Change		Change		30-Jun-23		30-Jun-22		Change		Change
Rental Revenue 2	$	80,105	$	77,142					$	721,868	$	704,231
Less: Termination income	(276)		641						3,225		1,147
Rental revenue (excluding termination income) 2	80,381		76,501		$	3,880	5.1	%	718,643		703,084		$	15,559	2.2	%
Less: Operating expenses and real estate taxes	32,147		29,280		2,867		9.8	%	275,244		259,715		15,529		6.0	%
NOI (excluding termination income) 2, 3	$	48,234	$	47,221	$	1,013	2.1	%	$	443,399	$	443,369	$	30	—	%

Rental revenue (excluding termination income) 2	$	80,381	$	76,501	$	3,880	5.1	%	$	718,643	$	703,084	$	15,559	2.2	%
Less: Straight-line rent and fair value lease revenue	4,781		225		4,556		2,024.9	%	17,705		28,329		(10,624)		(37.5)	%
Add: Lease transaction costs that qualify as rent inducements 4	279		—		279		100.0	%	3,231		4,539		(1,308)		(28.8)	%
Subtotal	75,879		76,276		(397)		(0.5)	%	704,169		679,294		24,875		3.7	%
Less: Operating expenses and real estate taxes	32,147		29,280		2,867		9.8	%	275,244		259,715		15,529		6.0	%
Add: Straight-line ground rent expense 5	—		—		—		—	%	720		776		(56)		(7.2)	%
NOI - cash (excluding termination income) 2, 3	$	43,732	$	46,996	$	(3,264)	(6.9)	%	$	429,645	$	420,355	$	9,290	2.2	%

___________________

1Includes 100% share of consolidated joint ventures that are a Same Property.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 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 $91 and $115 for the three months ended June 30, 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).


			Q2 2023
			Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES


	Three Months Ended
	30-Jun-23		31-Mar-23
Maintenance capital expenditures	$	29,015	$	21,455
Planned capital expenditures associated with acquisition properties	33		38
Repositioning capital expenditures	7,252		3,455
Hotel improvements, equipment upgrades and replacements	306		53
Subtotal	36,606		25,001
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)	338		269
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs	1,498		1,718
BXP’s share of repositioning capital expenditures from unconsolidated JVs	—		—
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs	5,221		3,216
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs	—		—
Partners’ share of repositioning capital expenditures from consolidated JVs	925		301
BXP’s Share of Capital Expenditures 1	$	32,296	$	23,471

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2


	Three Months Ended
	30-Jun-23		31-Mar-23
Square feet	891,347		775,445
Tenant improvements and lease commissions PSF	$	60.70	$	72.81

___________________

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

2Includes 100% of unconsolidated joint ventures.


			Q2 2023
			Acquisitions and dispositions

For the period from January 1, 2023 through June 30, 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.


			Q2 2023
			Construction in progress

20as of June 30, 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 6/30/2023		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 (Redevelopment) 6	Q3 2023	Q3 2023	Needham, MA	104,000	$	21,392	$	26,600	$	—	$	—	$	5,208	100	%		—	%	N/A
	360 Park Avenue South (42% ownership) 7	Q1 2024	Q4 2025	New York, NY	450,000	204,056		248,000		92,774		91,371		42,541		2	%		—	%	N/A
	Reston Next Office Phase II	Q2 2024	Q2 2025	Reston, VA	90,000	35,535		61,000		—		—		25,465		—	%		—	%	N/A
	Total Office Properties under Construction				644,000	260,983		335,600		92,774		91,371		73,214		18	%		—	%	—

Lab/Life Sciences
	751 Gateway (49% ownership)	Q4 2023	Q4 2023	South San Francisco, CA	231,000	103,738		127,600		—		—		23,862		100	%		—	%	N/A
	103 CityPoint	Q1 2024	Q3 2024	Waltham, MA	113,000	75,251		115,100		—		—		39,849		—	%		—	%	N/A
	180 CityPoint	Q1 2024	Q4 2024	Waltham, MA	329,000	191,337		274,700		—		—		83,363		43	%		—	%	N/A
	300 Binney Street (Redevelopment)	Q1 2025	Q1 2025	Cambridge, MA	236,000	22,359		210,200		—		—		187,841		100	%		—	%	N/A
	105 Carnegie Center (Redevelopment)	Q4 2024	Q2 2025	Princeton, NJ	73,000	1,868		40,600		—		—		38,732		—	%		—	%	N/A
	651 Gateway (50% ownership)	Q1 2024	Q4 2025	South San Francisco, CA	327,000	76,106		146,500		—		—		70,394		14	%		—	%	N/A
	290 Binney Street	Q2 2026	Q2 2026	Cambridge, MA	566,000	152,817		1,185,200		—		—		1,032,383		100	%		—	%	N/A
	Total Lab/Life Sciences Properties under Construction				1,875,000	623,476		2,099,900		—		—		1,476,424		65	%		—	%	N/A

Residential
	Reston Next Residential (508 units) (20% ownership)	Q2 2024	Q2 2026	Reston, VA	417,000	23,324		47,700		28,000		7,913		4,289		—	%		—	%	N/A
	Total Residential Property under Construction				417,000	23,324		47,700		28,000		7,913		4,289		—	%		—	%	N/A
Retail
	760 Boylston Street (Redevelopment)	Q2 2024	Q2 2024	Boston, MA	118,000	9,643		43,800		—		—		34,157		100	%		—	%	N/A
	Reston Next Retail	Q2 2025	Q4 2025	Reston, VA	33,000	20,610		26,600		—		—		5,990		—	%		—	%	N/A
	Total Retail Properties under Construction				151,000	30,253		70,400		—		—		40,147		78	%		—		N/A
Total Properties Under Construction					3,087,000	$	938,036	$	2,553,600	$	120,774	$	99,284	$	1,594,074	54	%	8	—	%	$	—

PROJECTS FULLY PLACED IN-SERVICE DURING 2023


	Actual/Estimated					BXP’s share
								Estimated Total Investment 2				Amount Drawn at 6/30/2023		Estimated Future Equity Requirement 2					Net Operating Income (Loss) 5 (BXP’s share)
	Initial Occupancy	Stabilization Date				Investment to Date 2				Total Financing						Percentage Leased 3
			Location	Square Feet
2100 Pennsylvania Avenue	Q2 2022	Q3 2024	Washington, DC		475,849	$	344,256	$	375,900	$	—	$	—	$	31,644	91	%		$	3,007
View Boston Observatory at The Prudential Center (Redevelopment)	Q2 2023	N/A	Boston, MA		63,000	174,000		182,300		—		—		8,300		N/A			N/A 9


Total Projects Fully Placed In-Service					538,849	$	518,256	$	558,200	$	—	$	—	$	39,944	91	%	10	$	3,007


			Q2 2023
			Construction in progress (continued)

________________

1A project is classified as Construction in Progress when (1) construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and (2) capitalized interest has commenced.

2Includes income (loss) and interest carry on debt and equity investment.

3Represents percentage leased as of July 28, 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 for the three months ended June 30, 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.

6On July 20, 2023, the project was fully placed into service.

7Investment 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.

8Total percentage leased excludes Residential.

9 Result of operations from the View Boston Observatory is included within the result of operations from 800 Boylston Street - The Prudential Center.

10Total percentage leased excludes View Boston Observatory at The Prudential Center.


			Q2 2023
			Land parcels and purchase options

as of June 30, 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 Jose, CA (55% ownership) 3		1,088,000
San Francisco, CA		850,000
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)		350,000
El Segundo, CA (50% ownership)		275,000
Lexington, MA 2		259,000
Rockville, MD 2		252,000
Dulles, VA		150,000
Total		13,692,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS



Location	Approximate Developable Square Feet 1
Cambridge, MA		887,000
Boston, MA		1,300,000
Waltham, MA 4		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.

3The number of square feet increased by 390,000 square feet from the previous quarter because, in the second quarter of 2023, a joint venture in which BXP has a 55% interest elected to pause further construction on Platform 16 in San Jose, CA. Platform 16 was planned to be constructed in phases to best accommodate market demand. The Company expects this joint venture will complete the underground parking garage and building foundation elements over the next several months to ensure that the project is positioned to mobilize quickly as demand improves. Our share of the estimated cost to complete the garage and foundation is approximately $45.8 million.

4The Company expects to be a 50% partner in the future development of these sites.


			Q2 2023
			Leasing activity

for the three months ended June 30, 2023

ALL IN-SERVICE PROPERTIES


Net (increase)/decrease in available space (SF)	Total
Vacant space available at the beginning of the period	5,569,935
Less:
Property dispositions/properties taken out of service	—
Add:

Properties placed (and partially placed) in-service 1	181,597
Leases expiring or terminated during the period	1,093,663
Total space available for lease	6,845,195

1st generation leases	151,087
2nd generation leases with new clients	556,310
2nd generation lease renewals	335,037
Total space leased	1,042,434

Vacant space available for lease at the end of the period	5,802,761
Net (increase)/decrease in available space	(232,826)


Second generation leasing information: 2
Leases commencing during the period (SF)	891,347
Weighted average lease term (months)	88
Weighted average free rent period (days)	186
Total transaction costs per square foot 3	$60.70
Increase (decrease) in gross rents 4	6.31	%
Increase (decrease) in net rents 5	10.02	%


	All leases (SF)			Incr (decr) in 2nd generation cash rents				Total square feet of leases executed in the quarter 7
	1st generation	2nd generation	total 7	gross 4, 6		net 5, 6
Boston	30,669	260,659	291,328	12.19	%	19.82	%	319,999
Los Angeles	—	1,088	1,088	—	%	—	%	615
New York	120,418	203,049	323,467	31.20	%	63.76	%	279,731
San Francisco	—	75,625	75,625	8.84	%	13.25	%	101,201
Seattle	—	—	—	—	%	—	%	—
Washington, DC	—	350,926	350,926	(5.63)	%	(8.45)	%	235,990
Total / Weighted Average	151,087	891,347	1,042,434	6.31	%	10.02	%	937,536

_____________

1Total square feet of properties placed in service in Q2 2023 consists of 181,597 at 2100 Pennsylvania Avenue.

2Second generation leases are defined as leases for space that has previously been leased. Of the 891,347 square feet of second generation leases that commenced in Q2 2023, leases for 776,928 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 554,458 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 554,458 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.

6Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

7Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 116,230.


			Q2 2023
			Portfolio overview

for the three months ended June 30, 2023

(dollars in thousands)

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


	Office		Retail		Residential		Hotel		Total
Boston	14,567,137		1,047,962		550,114		330,000		16,495,213
Los Angeles	2,186,718		126,377		—		—		2,313,095
New York	12,107,206		486,390		—		—		12,593,596
San Francisco	6,998,093		353,708		318,171		—		7,669,972
Seattle	1,507,450		26,472		—		—		1,533,922
Washington, DC	9,245,077		692,186		493,241		—		10,430,504
Total	46,611,681		2,733,095		1,361,526		330,000		51,036,302
% of Total	91.33	%	5.36	%	2.67	%	0.64	%	100.00	%

Rental revenue of in-service properties by unit type 1


	Office			Retail			Residential			Hotel 3			Total
Consolidated	$	721,161		$	55,968		$	11,688		$	13,869		$	802,686
Less:
Partners’ share from consolidated joint ventures 4	70,663			9,442			—			—			80,105
Add:
BXP’s share from unconsolidated joint ventures 5	62,236			3,216			2,682			—			68,134
BXP’s Share of Rental revenue 1	$	712,734		$	49,742		$	14,370		$	13,869		$	790,715
% of Total	90.14		%	6.29		%	1.82		%	1.75		%	100.00		%

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


	CBD		Suburban		Total
Boston	29.35	%	6.97	%	36.32	%
Los Angeles	2.58	%	—	%	2.58	%
New York	23.70	%	1.98	%	25.68	%
San Francisco	16.45	%	2.29	%	18.74	%
Seattle	3.21	%	—	%	3.21	%
Washington, DC	3.49	%	9.98	%	13.47	%
Total	78.78	%	21.22	%	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.


			Q2 2023
			Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS


	Residential 1				Hotel
	Three Months Ended				Three Months Ended
	30-Jun-23		31-Mar-23		30-Jun-23		31-Mar-23
Rental Revenue 2	$	12,253	$	11,726	$	13,969	$	8,101
Less: Operating expenses and real estate taxes	5,783		5,463		8,161		6,671
Net Operating Income (NOI) 2	6,470		6,263		5,808		1,430
Add: BXP’s share of NOI from unconsolidated joint ventures	1,722		1,751		N/A		N/A
BXP’s Share of NOI 2	$	8,192	$	8,014	$	5,808	$	1,430

Rental Revenue 2	$	12,253	$	11,726	$	13,969	$	8,101
Less: Straight line rent and fair value lease revenue	9		15		(2)		(2)
Add: Lease transaction costs that qualify as rent inducements	—		—		—		—
Subtotal	12,244		11,711		13,971		8,103
Less: Operating expenses and real estate taxes	5,783		5,463		8,161		6,671
NOI - cash basis 2	6,461		6,248		5,810		1,432
Add: BXP’s share of NOI-cash from unconsolidated joint ventures	1,722		1,751		N/A		N/A
BXP’s Share of NOI - cash basis 2	$	8,183	$	7,999	$	5,810	$	1,432

RENTAL RATES AND OCCUPANCY - Year-over-Year


	Residential Units	Three Months Ended						Percent Change
		30-Jun-23			30-Jun-22
BOSTON

Hub50House (50% ownership), Boston, MA 2	440
Average Monthly Rental Rate		$	4,221		$	3,957		6.67	%
Average Rental Rate Per Occupied Square Foot		$	5.78		$	5.45		6.06	%
Average Physical Occupancy		94.32		%	95.61		%	(1.35)	%
Average Economic Occupancy		94.03		%	94.81		%	(0.82)	%

Proto Kendall Square, Cambridge, MA 2, 3	280
Average Monthly Rental Rate		$	3,065		$	2,774		10.49	%
Average Rental Rate Per Occupied Square Foot		$	5.62		$	5.11		9.98	%
Average Physical Occupancy		95.83		%	95.24		%	0.62	%
Average Economic Occupancy		95.81		%	94.28		%	1.62	%

The Lofts at Atlantic Wharf, Boston, MA 2, 3	86
Average Monthly Rental Rate		$	4,440		$	4,097		8.37	%
Average Rental Rate Per Occupied Square Foot		$	4.91		$	4.57		7.44	%
Average Physical Occupancy		96.51		%