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): January 29, 2019

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))	

Indicate by check mark whether the registrant is an emerging growth company as defined in 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 ☐
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 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. ☐

 	 	
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 January 29, 2019, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the fourth quarter of 2018. 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 December 31, 2018.	
*99.2	 	Press release dated January 29, 2019.	
______________
* 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: January 29, 2019 

Exhibit 99.1

Supplemental Operating and Financial Data
for the Quarter Ended December 31, 2018

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”), is one of the largest publicly-held developers and owners of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s complete portfolio totals 51.6 million square feet and 197 properties, including eleven properties under construction/redevelopment, and consists of 177 office properties, thirteen retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants' needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned seven consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effectiveness of our interest rate hedging programs, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company's accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 52.

The Company also presents “BXP's Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company's share of the amount from the Company's unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), 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 priority allocations 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 presenting 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 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, liquidations and other matters. Moreover, 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. As a result, presentations of “BXP's Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company's financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP's Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 56.  

GENERAL INFORMATION

 	
 	 	 	 	
Corporate Headquarters	Trading Symbol	Investor Relations	Inquires	
800 Boylston Street	BXP	Boston Properties, Inc.	Inquiries should be directed to	
Suite 1900	 	800 Boylston Street, Suite 1900	Michael E. LaBelle	
Boston, MA 02199	Stock Exchange Listing	Boston, MA 02199	Executive Vice President, Chief Financial Officer	
(t) 617.236.3300	New York Stock Exchange	(t) 617.236.3822	at 617.236.3352 or	
(f) 617.236.3311	 	(f) 617.236.3311	mlabelle@bostonproperties.com	
 	 	investorrelations@bostonproperties.com	 	
 	 	www.bostonproperties.com	Sara Buda	
 	 	 	Vice President, Investor Relations	
 	 	 	at 617.236.3429 or	
 	 	 	sbuda@bostonproperties.com	

(Cover photo: Rendering of the completed renovation at 399 Park Avenue, New York, NY)

 	 	

	Q4 2018	 	
 	Table of contents	 	

 	 	
 	Page	
OVERVIEW	 	
Company Profile	1	
Guidance and Assumptions	2	
 	 	
FINANCIAL INFORMATION	 	
Financial Highlights	2	
Consolidated Balance Sheets	3	
Consolidated Income Statements	4	
Funds From Operations (FFO)	5	
Funds Available for Distribution (FAD)	6	
Net Operating Income (NOI)	7	
Same Property Net Operating Income (NOI) by Reportable Segment	9	
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions	10	
Acquisitions and Dispositions	11	
 	 	
DEVELOPMENT ACTIVITY	 	
Construction in Progress	12	
Land Parcels and Purchase Options	14	
 	 	
LEASING ACTIVITY	 	
Leasing Activity	15	
 	 	
PROPERTY STATISTICS	 	
Portfolio Overview	16	
Residential and Hotel Performance	17	
In-Service Property Listing	18	
Top 20 Tenants Listing and Portfolio Tenant Diversification	22	
Occupancy by Location	23	
 	 	
DEBT AND CAPITALIZATION	 	
Capital Structure	24	
Debt Analysis	25	
Senior Unsecured Debt Covenant Compliance Ratios	26	
Net Debt to EBITDAre	27	
Debt Ratios	28	
 	 	
JOINT VENTURES	 	
Consolidated Joint Ventures	29	
Unconsolidated Joint Ventures	31	
 	 	
LEASE EXPIRATION ROLL-OUT	 	
Total In-Service Properties	35	
Boston	36	
Los Angeles	38	
New York	40	
San Francisco	42	
Washington, DC	44	
CBD	46	
Suburban	48	
 	 	
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS	 	
Research Coverage	50	
Definitions	51	
Reconciliations	55	
Consolidated Income Statement - Prior Year	60	

 	 	

	Q4 2018	 	
 	Company profile	 	

SNAPSHOT

(as of December 31, 2018)

Fiscal Year-End	December 31	
Total Properties (includes unconsolidated joint ventures)	197	
Total Square Feet (includes unconsolidated joint ventures)	51.6 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	172.2 million	
Closing Price, at the end of the quarter	$112.55 per share	
Dividend - Quarter/Annualized	$0.95/$3.80 per share	
Dividend Yield	3.38%	
Consolidated Market Capitalization 1	$30.6 billion	
BXP's Share of Market Capitalization 1, 2	$30.3 billion	
Senior Debt Ratings	A- (S&P); BBB+ (Fitch); Baa1 (Moody's)	
STRATEGY

Boston Properties' primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the Company maintains consistent strategies that include the following:
 	 	
•	to maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC;	
 	 	
•	to invest in the highest quality buildings (primarily office) with unique amenities and locations that are able to maintain high occupancy, achieve premium rental rates through economic cycles and that advance our commitment to sustainable development and operations;	
 	 	
•	in our core markets, to maintain scale and a full-service real estate capability (development, construction, leasing and property management) 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 development, repositioning, acquisitions and dispositions, throughout the real estate investment cycle and (3) provide superior service to our tenants;	
 	 	
•	to be astute in market timing for investment decisions by developing into economic growth, acquiring properties in times of opportunity and selling assets at attractive prices, resulting in continuous portfolio refreshment;	
 	 	
•	to ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make opportunistic investments; and	
 	 	
•	to foster a culture and reputation of integrity and fair dealing, making us the counterparty of choice for tenants and real estate industry participants and the employer of choice for talented real estate professionals.	
MANAGEMENT

 	 	
 	 	 	 	 	 	
Board of Directors	 	Chairman Emeritus	 	
Joel I. Klein	Lead Independent Director	 	Mortimer B. Zuckerman	 	
Owen D. Thomas	Chief Executive Officer	 	 	 	
Douglas T. Linde	President	 	Management	 	
Kelly A. Ayotte	 	 	Owen D. Thomas	Chief Executive Officer	 	
Bruce W. Duncan	 	 	Douglas T. Linde	President	 	
Karen E. Dykstra	 	 	Raymond A. Ritchey	Senior Executive Vice President	 	
Carol B. Einiger	Chair of Compensation Committee	 	Michael E. LaBelle	Executive Vice President, Chief Financial Officer and Treasurer	 	
Dr. Jacob A. Frenkel	 	 	 	 	 	
Matthew J. Lustig	Chair of Nominating & Corporate Governance Committee
	 	Peter D. Johnston	Executive Vice President, Washington, DC Region	 	
 	 	 	Bryan J. Koop	Executive Vice President, Boston Region	 	
Martin Turchin	 	 	Robert E. Pester	Executive Vice President, San Francisco Region	 	
David A. Twardock	Chair of Audit Committee	 	John F. Powers	Executive Vice President, New York Region	 	
 	 	 	Frank D. Burt	Senior Vice President, General Counsel	 	
 	 	 	Michael R. Walsh	Senior Vice President, Chief Accounting Officer	 	
TIMING OF EARNINGS ANNOUNCEMENTS

Quarterly results for the next four quarters will be announced according to the following schedule:

First Quarter, 2019	Tentatively April 30, 2019	 	 	
Second Quarter, 2019	Tentatively July 30, 2019	 	 	
Third Quarter, 2019	Tentatively October 29, 2019	 	 	
Fourth Quarter, 2020	Tentatively January 28, 2020	 	 	
____________________
 	 	
1 	For additional detail, see page 25.	
 	 	
2 	For the Company's definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	

1

 	 	

	Q4 2018	 	
 	Guidance and assumptions	 	

GUIDANCE

The Company’s guidance for the first quarter 2019 and full year 2019 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and development deliveries and the earnings impact of the events referenced in the earnings release issued on January 29, 2019 and otherwise referenced during the Company’s conference call scheduled for January 30, 2019.  The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, other possible capital markets activity or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities.  For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 54. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below. 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	First Quarter 2019	 	Full Year 2019	
 	 	 	 	Low	 	High	 	Low	 	High	
Projected EPS (diluted)	 	$	0.66	
 	—	$	0.68	
 	 	$	3.05	
 	—	$	3.17	
 	
 	Add:	 	 	 	 	 	 	 	 	 	
 	 	Projected Company share of real estate depreciation and amortization	 	1.00	
 	—	1.00	
 	 	3.83	
 	—	3.83	
 	
 	Less:	 	 	 	 	 	 	 	 	 	
 	 	Projected Company share of gains on sales of real estate	 	—	
 	—	—	
 	 	—	
 	—	—	
 	
Projected FFO per share (diluted)	 	$	1.66	
 	—	$	1.68	
 	 	$	6.88	
 	—	$	7.00	

ASSUMPTIONS
(dollars in thousands)

 	
 	 	 	 	 	 	 	 	 	 	
 	 	 	Full Year 2019	
 	 	 	Low	 	High	
Operating property activity:	 	 	 	 	
 	Average In-service portfolio occupancy	 	92.0	%	—	93.0	%	
 	Increase in BXP's Share of Same Property net operating income (excluding termination income)	 	4.5	%	—	6.0	%	
 	Increase in BXP's Share of Same Property net operating income - cash (excluding termination income)	 	4.5	%	—	6.5	%	
 	BXP's Share of Non Same Properties' incremental contribution to net operating income over prior year (excluding asset sales)	 	$	75,000	
 	—	$	85,000	
 	
 	BXP's Share of incremental net operating income related to asset sales over prior year	 	$	(14,000	)	—	$	(14,000	)	
 	BXP's Share of straight-line rent and fair value lease revenue (non-cash revenue)	 	$	85,000	
 	—	$	110,000	
 	
 	Hotel net operating income	 	$	15,000	
 	—	$	16,500	
 	
 	Termination income	 	$	12,000	
 	—	$	17,000	

Other revenue (expense):	 	 	 	 	
 	Development and management services revenue	 	$	40,000	
 	—	$	45,000	
 	
 	General and administrative expense 1	 	$	(140,000	)	—	$	(136,000	)	
 	Net interest expense	 	$	(425,000	)	—	$	(410,000	)	
 	 	 	 	 	 	
Noncontrolling interest:	 	 	 	 	
 	Noncontrolling interest in property partnerships' share of FFO	 	$	(145,000	)	—	$	(135,000	)	

_____________
 	 	
1 	Full Year 2019 assumptions include approximately $10 million related to the adoption of ASU 2016-02 - "Leases" on January 1, 2019 under which lessors will only capitalize incremental direct leasing costs.  As a result, the Company will no longer capitalize external legal costs and internal leasing wages and instead will expense these and other non-incremental costs as incurred.	

 	 	

	Q4 2018	 	
 	Financial highlights

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

 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	119,118	
 	
Net income attributable to Boston Properties, Inc. per share - diluted	 	$	0.96	
 	 	$	0.77	
 	
FFO attributable to Boston Properties, Inc. common shareholders 1	 	$	245,690	
 	 	$	253,794	
 	
Diluted FFO per share 1	 	$	1.59	
 	 	$	1.64	
 	
Dividends per common share	 	$	0.95	
 	 	$	0.95	
 	
Funds available for distribution to common shareholders and common unitholders (FAD) 2	 	$	205,179	
 	 	$	211,101	

Selected items:	 	 	 	 	
Revenue	 	$	705,157	
 	 	$	686,284	
 	
BXP's Share of revenue 3	 	$	669,787	
 	 	$	649,794	
 	
BXP's Share of straight-line rent 3	 	$	5,487	
 	 	$	4,846	
 	
BXP's Share of fair value lease revenue 3, 4	 	$	5,119	
 	 	$	5,007	
 	
BXP's Share of termination income 3	 	$	4,687	
 	 	$	1,350	
 	
Ground rent expense	 	$	3,633	
 	 	$	3,605	
 	
Capitalized interest	 	$	14,172	
 	 	$	16,595	
 	
Capitalized wages	 	$	4,525	
 	 	$	4,152	
 	
BXP's Share of capitalized internal leasing and external legal costs 3	 	$	2,749	
 	 	$	1,856	
 	
Income (loss) from unconsolidated joint ventures	 	$	5,305	
 	 	$	(4,313	)	
BXP's share of FFO from unconsolidated joint ventures 5	 	$	14,611	
 	 	$	13,707	
 	
Net income attributable to noncontrolling interests in property partnerships	 	$	16,425	
 	 	$	14,850	
 	
FFO attributable to noncontrolling interests in property partnerships 6	 	$	35,492	
 	 	$	33,016	

Balance Sheet items:	 	 	 	 	
Above-market rents (included within Prepaid Expenses and Other Assets)	 	$	16,772	
 	 	$	18,790	
 	
Below-market rents (included within Other Liabilities)	 	$	66,321	
 	 	$	74,416	
 	
Accrued rental income liability (included within Other Liabilities)	 	$	75,971	
 	 	$	63,805	
 	
Accrued ground rent expense, net liability (included within Prepaid Expenses and Other Assets and Other Liabilities)	 	$	49,178	
 	 	$	48,122	

Ratios:	 	 	 	 	
Interest Coverage Ratio (excluding capitalized interest) 7	 	4.13	
 	 	4.28	
 	
Interest Coverage Ratio (including capitalized interest) 7	 	3.59	
 	 	3.61	
 	
Fixed Charge Coverage Ratio 7	 	3.05	
 	 	2.86	
 	
BXP's Share of Net Debt to BXP's Share of EBITDAre 8	 	6.44	
 	 	6.71	
 	
Change in BXP's Share of Same Store Net Operating Income (NOI) (excluding termination income) 9	 	3.4	%	 	1.4	%	
Change in BXP's Share of Same Store NOI (excluding termination income) - cash 9	 	7.9	%	 	2.5	%	
FAD Payout Ratio 2	 	79.80	%	 	77.56	%	
Operating Margins [(rental revenue - rental expense)/rental revenue]	 	62.8	%	 	62.1	%	
Occupancy of In-Service Properties	 	91.4	%	 	91.1	%	
 	 	 	 	 	
Capitalization:	 	 	 	 	
Consolidated Debt	 	$	11,007,757	
 	 	$	10,889,702	
 	
BXP's Share of Debt 10	 	$	10,693,557	
 	 	$	10,552,938	
 	
Consolidated Market Capitalization	 	$	30,592,581	
 	 	$	32,290,355	
 	
Consolidated Debt/Consolidated Market Capitalization	 	35.98	%	 	33.72	%	
BXP's Share of Market Capitalization 10	 	$	30,278,381	
 	 	$	31,953,591	
 	
BXP's Share of Debt/BXP's Share of Market Capitalization 10	 	35.32	%	 	33.03	%	
_____________
 	 	
1 	For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 6.	
 	 	
2 	For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.	
 	 	
3 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
4 	Represents 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.  	
 	 	
5 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.	
 	 	
6 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.	
 	 	
7 	For a quantitative reconciliation for the three months ended December 31, 2018 and September 30, 2018, see page 29.	
 	 	
8 	For a quantitative reconciliation for the three months ended December 31, 2018 and September 30, 2018, see page 28.	
 	 	
9 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 10.	
 	 	
10 	For a quantitative reconciliation for December 31, 2018, see page 25.	

2

 	 	

	Q4 2018	 	
 	Consolidated Balance Sheets

(unaudited and in thousands)

 	 	31-Dec-18	 	30-Sep-18	
ASSETS	 	 	 	 	
Real estate	 	$	20,870,602	
 	 	$	20,425,282	
 	
Construction in progress	 	578,796	
 	 	1,057,261	
 	
Land held for future development	 	200,498	
 	 	205,096	
 	
Less accumulated depreciation	 	(4,897,777	)	 	(4,838,496	)	
Total real estate	 	16,752,119	
 	 	16,849,143	
 	
Cash and cash equivalents	 	543,359	
 	 	322,502	
 	
Cash held in escrows	 	95,832	
 	 	101,282	
 	
Investments in securities	 	28,198	
 	 	31,376	
 	
Tenant and other receivables, net	 	86,629	
 	 	98,502	
 	
Related party note receivable	 	80,000	
 	 	80,000	
 	
Note receivable	 	19,468	
 	 	—	
 	
Accrued rental income, net	 	934,896	
 	 	926,274	
 	
Deferred charges, net	 	678,724	
 	 	669,545	
 	
Prepaid expenses and other assets	 	80,943	
 	 	133,443	
 	
Investments in unconsolidated joint ventures	 	956,309	
 	 	925,431	
 	
Total assets	 	$	20,256,477	
 	 	$	20,137,498	

LIABILITIES AND EQUITY	 	 	 	 	
Liabilities:	 	 	 	 	
Mortgage notes payable, net	 	$	2,964,572	
 	 	$	2,967,548	
 	
Unsecured senior notes, net	 	7,544,697	
 	 	7,253,786	
 	
Unsecured line of credit	 	—	
 	 	170,000	
 	
Unsecured term loan, net	 	498,488	
 	 	498,368	
 	
Accounts payable and accrued expenses	 	276,645	
 	 	315,462	
 	
Dividends and distributions payable	 	165,114	
 	 	165,118	
 	
Accrued interest payable	 	89,267	
 	 	92,809	
 	
Other liabilities	 	503,726	
 	 	468,433	
 	
Total liabilities	 	12,042,509	
 	 	11,931,524	

Commitments and contingencies	 	—	
 	 	—	

Equity:	 	 	 	 	
Stockholders' equity attributable to Boston Properties, Inc.:	 	 	 	 	
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding	 	—	
 	 	—	
 	
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2018 and September 30, 2018	 	200,000	
 	 	200,000	
 	
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,537,378 and 154,519,139 issued and 154,458,478 and 154,440,239 outstanding at December 31, 2018 and September 30, 2018, respectively	 	1,545	
 	 	1,544	
 	
Additional paid-in capital	 	6,407,623	
 	 	6,400,193	
 	
Dividends in excess of earnings	 	(675,534	)	 	(677,312	)	
Treasury common stock at cost, 78,900 shares at December 31, 2018 and September 30, 2018	 	(2,722	)	 	(2,722	)	
Accumulated other comprehensive loss	 	(47,741	)	 	(45,137	)	
Total stockholders' equity attributable to Boston Properties, Inc.	 	5,883,171	
 	 	5,876,566	

Noncontrolling interests:	 	 	 	 	
Common units of the Operating Partnership	 	619,352	
 	 	618,380	
 	
Property partnerships	 	1,711,445	
 	 	1,711,028	
 	
Total equity	 	8,213,968	
 	 	8,205,974	

Total liabilities and equity	 	$	20,256,477	
 	 	$	20,137,498	

3

 	 	

	Q4 2018	 	
 	Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Revenue	 	 	 	 	
Rental	 	 	 	 	
Base rent	 	$	541,902	
 	 	$	525,875	
 	
Recoveries from tenants	 	109,265	
 	 	102,424	
 	
Parking and other	 	27,831	
 	 	26,552	
 	
Total rental revenue	 	678,998	
 	 	654,851	
 	
Hotel revenue	 	11,745	
 	 	13,664	
 	
Development and management services	 	12,195	
 	 	15,253	
 	
Direct reimbursements of payroll and related costs from management services contracts	 	2,219	
 	 	2,516	
 	
Total revenue	 	705,157	
 	 	686,284	
 	
Expenses	 	 	 	 	
Operating	 	128,456	
 	 	125,596	
 	
Real estate taxes	 	124,587	
 	 	122,393	
 	
Demolition costs	 	—	
 	 	—	
 	
Hotel operating	 	8,221	
 	 	8,828	
 	
General and administrative 1	 	27,683	
 	 	29,677	
 	
Payroll and related costs from management services contracts	 	2,219	
 	 	2,516	
 	
Transaction costs	 	195	
 	 	914	
 	
Impairment losses 2	 	11,812	
 	 	—	
 	
Depreciation and amortization	 	165,439	
 	 	157,996	
 	
Total expenses	 	468,612	
 	 	447,920	
 	
Operating income	 	236,545	
 	 	238,364	
 	
Other income (expense)	 	 	 	 	
Income (loss) from unconsolidated joint ventures	 	5,305	
 	 	(4,313	)	
Gains on sales of real estate	 	59,804	
 	 	7,863	
 	
Gains (losses) from investments in securities 1	 	(3,319	)	 	1,075	
 	
Interest and other income	 	3,774	
 	 	2,822	
 	
Losses from early extinguishments of debt	 	(16,490	)	 	—	
 	
Interest expense	 	(100,378	)	 	(95,366	)	
Net income	 	185,241	
 	 	150,445	
 	
Net income attributable to noncontrolling interests	 	 	 	 	
Noncontrolling interest in property partnerships	 	(16,425	)	 	(14,850	)	
Noncontrolling interest - common units of the Operating Partnership 3	 	(17,662	)	 	(13,852	)	
Net income attributable to Boston Properties, Inc.	 	151,154	
 	 	121,743	
 	
Preferred dividends	 	(2,625	)	 	(2,625	)	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	119,118	

 	 	 	 	 	
INCOME PER SHARE OF COMMON STOCK (EPS)	 	 	 	 	
 	 	 	 	 	
Net income attributable to Boston Properties, Inc. per share - basic	 	$	0.96	
 	 	$	0.77	
 	
Net income attributable to Boston Properties, Inc. per share - diluted	 	$	0.96	
 	 	$	0.77	

_____________
 	 	
1 	General and administrative expense includes $3.3 million and $(1.1) million and gains (losses) from investments in securities include $(3.3) million and $1.1 million for the three months ended December 31, 2018 and September 30, 2018, respectively, related to the Company's deferred compensation plan.	
 	 	
2 	Consists of approximately $8.7 million and $3.1 million related to 6595 Springfield Center Drive (TSA Headquarters) and 2600 Tower Oaks Boulevard, respectively.	
 	 	
3 	For additional detail, see page 6.	

4

 	 	

	Q4 2018	 	
 	Fund from operations (FFO)1

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

 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	119,118	
 	
Add:	 	 	 	 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Noncontrolling interest - common units of the Operating Partnership	 	17,662	
 	 	13,852	
 	
Noncontrolling interests in property partnerships	 	16,425	
 	 	14,850	
 	
Net income	 	185,241	
 	 	150,445	
 	
Add:	 	 	 	 	
Depreciation and amortization	 	165,439	
 	 	157,996	
 	
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	 	(19,067	)	 	(18,166	)	
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	 	17,576	
 	 	18,020	
 	
Corporate-related depreciation and amortization	 	(398	)	 	(425	)	
Impairment losses	 	11,812	
 	 	—	
 	
Less:	 	 	 	 	
Gains on sales of real estate	 	59,804	
 	 	7,863	
 	
Gain on sale of real estate included within income from unconsolidated joint ventures	 	8,270	
 	 	—	
 	
Noncontrolling interests in property partnerships	 	16,425	
 	 	14,850	
 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)	 	273,479	
 	 	282,532	
 	
Less:	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership's share of FFO	 	27,789	
 	 	28,738	
 	
FFO attributable to Boston Properties, Inc. common shareholders	 	$	245,690	
 	 	$	253,794	

Boston Properties, Inc.'s percentage share of Basic FFO	 	89.84	%	 	89.83	%	
Noncontrolling interest's - common unitholders percentage share of Basic FFO	 	10.16	%	 	10.17	%	
Basic FFO per share	 	$	1.59	
 	 	$	1.64	
 	
Weighted average shares outstanding - basic	 	154,467	
 	 	154,440	
 	
Diluted FFO per share	 	$	1.59	
 	 	$	1.64	
 	
Weighted average shares outstanding - diluted	 	154,773	
 	 	154,678	

RECONCILIATION TO DILUTED FFO	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Basic FFO	 	$	273,479	
 	 	$	282,532	
 	
Add:	 	 	 	 	
Effect of dilutive securities - stock-based compensation	 	—	
 	 	—	
 	
Diluted FFO	 	273,479	
 	 	282,532	
 	
Less:	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership's share of diluted FFO	 	27,739	
 	 	28,698	
 	
Boston Properties, Inc.'s share of Diluted FFO	 	$	245,740	
 	 	$	253,834	

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO	
 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Shares/units for Basic FFO	 	171,938	
 	 	171,928	
 	
Add:	 	 	 	 	
Effect of dilutive securities - stock-based compensation (shares/units)	 	306	
 	 	238	
 	
Shares/units for Diluted FFO	 	172,244	
 	 	172,166	
 	
Less:	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership's share of Diluted FFO (shares/units)	 	17,471	
 	 	17,488	
 	
Boston Properties, Inc.'s share of shares/units for Diluted FFO	 	154,773	
 	 	154,678	

Boston Properties, Inc.'s percentage share of Diluted FFO	 	89.86	%	 	89.84	%	
_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.	
 	 	
3 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.	

5

 	 	

	Q4 2018	 	
 	Funds available for distributions (FAD)1

(dollars in thousands)

 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	119,118	
 	
Add:	 	 	 	 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Noncontrolling interest - common units of the Operating Partnership	 	17,662	
 	 	13,852	
 	
Noncontrolling interests in property partnerships	 	16,425	
 	 	14,850	
 	
Net income	 	185,241	
 	 	150,445	
 	
Add:	 	 	 	 	
Depreciation and amortization	 	165,439	
 	 	157,996	
 	
Noncontrolling interests in property partnerships' share of depreciation and amortization 2	 	(19,067	)	 	(18,166	)	
BXP's share of depreciation and amortization from unconsolidated joint ventures 3	 	17,576	
 	 	18,020	
 	
Corporate-related depreciation and amortization	 	(398	)	 	(425	)	
Impairment losses	 	11,812	
 	 	—	
 	
Less:	 	 	 	 	
Gains on sales of real estate	 	59,804	
 	 	7,863	
 	
Gain on sale of real estate included within income from unconsolidated joint ventures	 	8,270	
 	 	—	
 	
Noncontrolling interests in property partnerships	 	16,425	
 	 	14,850	
 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Basic FFO	 	273,479	
 	 	282,532	
 	
Add:	 	 	 	 	
BXP's Share of lease transaction costs that qualify as rent inducements 1, 4	 	4,198	
 	 	3,846	
 	
BXP's Share of hedge amortization 1	 	1,435	
 	 	1,435	
 	
Straight-line ground rent expense adjustment 5	 	1,055	
 	 	1,062	
 	
Stock-based compensation	 	8,417	
 	 	8,457	
 	
Non-real estate depreciation	 	398	
 	 	425	
 	
Unearned portion of capitalized fees from consolidated joint ventures 6	 	4,274	
 	 	1,374	
 	
Less:	 	 	 	 	
BXP's Share of straight-line rent 1	 	5,487	
 	 	4,846	
 	
BXP's Share of fair value lease revenue 1, 7	 	5,119	
 	 	5,007	
 	
BXP's Share of non-cash termination income adjustment (fair value lease amounts) 1	 	—	
 	 	—	
 	
BXP's Share of 2nd generation tenant improvements and leasing commissions 1	 	60,412	
 	 	52,744	
 	
BXP's Share of maintenance capital expenditures 1, 8	 	16,787	
 	 	25,222	
 	
Hotel improvements, equipment upgrades and replacements	 	272	
 	 	211	
 	
Funds available for distribution to common shareholders and common unitholders (FAD) (A)	 	$	205,179	
 	 	$	211,101	

Distributions to common shareholders and unitholders (excluding any special distributions) (B)	 	163,735	
 	 	163,740	

FAD Payout Ratio1 (B÷A)	 	79.80	%	 	77.56	%	

_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 31.	
 	 	
3 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 34.	
 	 	
4 	Consists 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.  	
 	 	
5 	Includes 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 2021 with no payments thereafter. The Company is recognizing these amounts on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.	
 	 	
6 	See page 58 for additional information.	
 	 	
7 	Represents 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.	
 	 	
8 	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.	

6

 	 	

	Q4 2018	 	
 	Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP's Share of same property net operating income (NOI)	 	
(in thousands)

 	 	Three Months Ended	
 	 	31-Dec-18	 	31-Dec-17	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	103,829	
 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Net income attributable to Boston Properties, Inc.	 	151,154	
 	 	106,454	
 	
Net income attributable to noncontrolling interests:	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership	 	17,662	
 	 	11,884	
 	
Noncontrolling interest in property partnerships	 	16,425	
 	 	13,865	
 	
Net income	 	185,241	
 	 	132,203	
 	
Add:	 	 	 	 	
Interest expense	 	100,378	
 	 	91,772	
 	
Losses from early extinguishments of debt	 	16,490	
 	 	13,858	
 	
Depreciation and amortization expense	 	165,439	
 	 	154,259	
 	
Impairment losses	 	11,812	
 	 	—	
 	
Transaction costs	 	195	
 	 	96	
 	
Payroll and related costs from management services contracts	 	2,219	
 	 	—	
 	
General and administrative expense	 	27,683	
 	 	29,396	
 	
Less:	 	 	 	 	
Interest and other income	 	3,774	
 	 	2,336	
 	
Gains (losses) from investments in securities	 	(3,319	)	 	962	
 	
Gains on sales of real estate	 	59,804	
 	 	872	
 	
Income from unconsolidated joint ventures	 	5,305	
 	 	4,197	
 	
Direct reimbursements of payroll and related costs from management services contracts	 	2,219	
 	 	—	
 	
Development and management services revenue	 	12,195	
 	 	9,957	
 	
Net Operating Income (NOI)	 	429,479	
 	 	403,260	
 	
Add:	 	 	 	 	
BXP's share of NOI from unconsolidated joint ventures 1	 	24,814	
 	 	16,248	
 	
Less:	 	 	 	 	
Partners' share of NOI from consolidated joint ventures (after priority allocations) 2	 	45,369	
 	 	43,449	
 	
BXP's Share of NOI	 	408,924	
 	 	376,059	
 	
Less:	 	 	 	 	
Termination income	 	4,775	
 	 	756	
 	
BXP's share of termination income from unconsolidated joint ventures 1	 	27	
 	 	66	
 	
Add:	 	 	 	 	
Partners' share of termination income from consolidated joint ventures 2	 	115	
 	 	6	
 	
BXP's Share of NOI (excluding termination income)	 	$	404,237	
 	 	$	375,243	

Net Operating Income (NOI)	 	$	429,479	
 	 	$	403,260	
 	
Less:	 	 	 	 	
Termination income	 	4,775	
 	 	756	
 	
NOI from non Same Properties (excluding termination income) 3	 	15,525	
 	 	5,395	
 	
Same Property NOI (excluding termination income)	 	409,179	
 	 	397,109	
 	
Less:	 	 	 	 	
Partners' share of NOI from consolidated joint ventures (excluding termination income and after priority allocations)  2	 	45,254	
 	 	43,443	
 	
Add:	 	 	 	 	
Partners' share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after priority allocations)  3	 	449	
 	 	(150	)	
BXP's share of NOI from unconsolidated joint ventures (excluding termination income) 1	 	24,787	
 	 	16,182	
 	
Less:	 	 	 	 	
BXP's share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income)  3	 	7,103	
 	 	57	
 	
BXP's Share of Same Property NOI (excluding termination income) 	 	$	382,058	
 	 	$	369,641	

_____________
 	 	
1 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 60.	
 	 	
2 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 58.	
 	 	
3 	Pages 19-22 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 December 31, 2018 and therefore are no longer a part of the Company’s property portfolio.	

7

 	 	

	Q4 2018	 	
 	Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP's Share of same property net operating income (NOI) - cash	 	

(in thousands)

 	 	Three Months Ended	
 	 	31-Dec-18	 	31-Dec-17	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	103,829	
 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Net income attributable to Boston Properties, Inc.	 	151,154	
 	 	106,454	
 	
Net income attributable to noncontrolling interests:	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership	 	17,662	
 	 	11,884	
 	
Noncontrolling interest in property partnerships	 	16,425	
 	 	13,865	
 	
Net income	 	185,241	
 	 	132,203	
 	
Add:	 	 	 	 	
Interest expense	 	100,378	
 	 	91,772	
 	
Losses from early extinguishments of debt	 	16,490	
 	 	13,858	
 	
Depreciation and amortization expense	 	165,439	
 	 	154,259	
 	
Impairment losses	 	11,812	
 	 	—	
 	
Transaction costs	 	195	
 	 	96	
 	
Payroll and related costs from management services contracts	 	2,219	
 	 	—	
 	
General and administrative expense	 	27,683	
 	 	29,396	
 	
Less:	 	 	 	 	
Interest and other income	 	3,774	
 	 	2,336	
 	
Gains (losses) from investments in securities	 	(3,319	)	 	962	
 	
Gains on sales of real estate	 	59,804	
 	 	872	
 	
Income from unconsolidated joint ventures	 	5,305	
 	 	4,197	
 	
Direct reimbursements of payroll and related costs from management services contracts	 	2,219	
 	 	—	
 	
Development and management services revenue	 	12,195	
 	 	9,957	
 	
Net Operating Income (NOI)	 	429,479	
 	 	403,260	
 	
Less:	 	 	 	 	
Straight-line rent	 	1,830	
 	 	22,323	
 	
Fair value lease revenue	 	6,076	
 	 	5,655	
 	
Termination income	 	4,775	
 	 	756	
 	
Add:	 	 	 	 	
Straight-line ground rent expense adjustment 1	 	887	
 	 	929	
 	
Lease transaction costs that qualify as rent inducements 2	 	3,989	
 	 	225	
 	
NOI - cash (excluding termination income)	 	421,674	
 	 	375,680	
 	
Less:	 	 	 	 	
NOI - cash from non Same Properties (excluding termination income) 3	 	23,135	
 	 	6,629	
 	
Same Property NOI - cash (excluding termination income)	 	398,539	
 	 	369,051	
 	
Less:	 	 	 	 	
Partners' share of NOI - cash from consolidated joint ventures (excluding termination income and after priority allocations)  4	 	43,416	
 	 	38,390	
 	
Add:	 	 	 	 	
Partners' share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after priority allocations)  3	 	854	
 	 	(6	)	
BXP's share of NOI - cash from unconsolidated joint ventures (excluding termination income)  5	 	20,458	
 	 	13,346	
 	
Less:	 	 	 	 	
BXP's share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income)  3	 	5,332	
 	 	52	
 	
BXP's Share of Same Property NOI - cash (excluding termination income) 	 	$	371,103	
 	 	$	343,949	
 	
_____________
 	 	
1 	In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $168 and $(31) for the three months ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company has remaining lease payments aggregating approximately $26.1 million, all of which it expects to incur by the end of 2021 with no payments thereafter. Under GAAP, the Company is recognizing 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 2021 may vary significantly.	
 	 	
2 	Consists 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.  	
 	 	
3 	Pages 19-22 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 December 31, 2018 and therefore are no longer a part of the Company’s property portfolio.	
 	 	
4 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 58.	
 	 	
5 	For a quantitative reconciliation for the three months ended December 31, 2018, see page 60.	

8

 	 	

	Q4 2018	 	
 	Same property net operating income (NOI) by reportable segment	 	

(dollars in thousands)

 	Office 1	 	Hotel & Residential	
 	Three Months Ended	 	$	 	%	 	Three Months Ended	 	$	 	%	
 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	
Rental Revenue	$	646,099	
 	 	$	618,912	
 	 	 	 	 	 	$	15,914	
 	 	$	15,880	
 	 	 	 	 	
Less: Termination income	4,421	
 	 	210	
 	 	 	 	 	 	—	
 	 	—	
 	 	 	 	 	
Rental revenue (excluding termination income)  2	641,678	
 	 	618,702	
 	 	$	22,976	
 	 	3.7	 %	 	15,914	
 	 	15,880	
 	 	$	34	
 	 	0.2	 %	
Less: Operating expenses and real estate taxes	238,507	
 	 	227,817	
 	 	10,690	
 	 	4.7	 %	 	9,906	
 	 	9,656	
 	 	250	
 	 	2.6	 %	
NOI (excluding termination income)  2,   3	$	403,171	
 	 	$	390,885	
 	 	$	12,286	
 	 	3.1	 %	 	$	6,008	
 	 	$	6,224	
 	 	$	(216	)	 	(3.5	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding termination income)  2	$	641,678	
 	 	$	618,702	
 	 	$	22,976	
 	 	3.7	 %	 	$	15,914	
 	 	$	15,880	
 	 	$	34	
 	 	0.2	 %	
Less: Straight-line rent and fair value lease revenue	15,067	
 	 	29,210	
 	 	(14,143	)	 	(48.4	)%	 	(8	)	 	2	
 	 	(10	)	 	(500.0	)%	
Add: Lease transaction costs that qualify as rent inducements  4	3,532	
 	 	225	
 	 	3,307	
 	 	1,469.8	 %	 	—	
 	 	—	
 	 	—	
 	 	—	 %	
Subtotal	630,143	
 	 	589,717	
 	 	40,426	
 	 	6.9	 %	 	15,922	
 	 	15,878	
 	 	44	
 	 	0.3	 %	
Less: Operating expenses and real estate taxes	238,507	
 	 	227,817	
 	 	10,690	
 	 	4.7	 %	 	9,906	
 	 	9,656	
 	 	250	
 	 	2.6	 %	
Add: Straight-line ground rent expense  5	887	
 	 	929	
 	 	(42	)	 	(4.5	)%	 	—	
 	 	—	
 	 	—	
 	 	—	 %	
NOI - cash (excluding termination income)  2,   3	$	392,523	
 	 	$	362,829	
 	 	$	29,694	
 	 	8.2	 %	 	$	6,016	
 	 	$	6,222	
 	 	$	(206	)	 	(3.3	)%	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Consolidated Total 1	 	BXP's share of Unconsolidated Joint Ventures	
 	Three Months Ended	 	$	 	%	 	Three Months Ended	 	$	 	%	
 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	
Rental Revenue	$	662,013	
 	 	$	634,792	
 	 	 	 	 	 	$	27,920	
 	 	$	26,053	
 	 	 	 	 	
Less: Termination income	4,421	
 	 	210	
 	 	 	 	 	 	27	
 	 	66	
 	 	 	 	 	
Rental revenue (excluding termination income)  2	657,592	
 	 	634,582	
 	 	$	23,010	
 	 	3.6	 %	 	27,893	
 	 	25,987	
 	 	$	1,906	
 	 	7.3	 %	
Less: Operating expenses and real estate taxes	248,413	
 	 	237,473	
 	 	10,940	
 	 	4.6	 %	 	10,209	
 	 	9,862	
 	 	347	
 	 	3.5	 %	
NOI (excluding termination income)  2, 3	$	409,179	
 	 	$	397,109	
 	 	$	12,070	
 	 	3.0	 %	 	$	17,684	
 	 	$	16,125	
 	 	$	1,559	
 	 	9.7	 %	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding termination income)  2	$	657,592	
 	 	$	634,582	
 	 	$	23,010	
 	 	3.6	 %	 	$	27,893	
 	 	$	25,987	
 	 	$	1,906	
 	 	7.3	 %	
Less: Straight-line rent and fair value lease revenue	15,059	
 	 	29,212	
 	 	(14,153	)	 	(48.4	)%	 	2,911	
 	 	3,316	
 	 	(405	)	 	(12.2	)%	
Add: Lease transaction costs that qualify as rent inducements  4	3,532	
 	 	225	
 	 	3,307	
 	 	1,469.8	 %	 	353	
 	 	485	
 	 	(132	)	 	(27.2	)%	
Subtotal	$	646,065	
 	 	$	605,595	
 	 	40,470	
 	 	6.7	 %	 	25,335	
 	 	23,156	
 	 	2,179	
 	 	9.4	 %	
Less: Operating expenses and real estate taxes	248,413	
 	 	237,473	
 	 	10,940	
 	 	4.6	 %	 	10,209	
 	 	9,862	
 	 	347	
 	 	3.5	 %	
Add: Straight-line ground rent expense  5	887	
 	 	929	
 	 	(42	)	 	(4.5	)%	 	—	
 	 	—	
 	 	—	
 	 	—	 %	
NOI - cash (excluding termination income)  2,   3	$	398,539	
 	 	$	369,051	
 	 	$	29,488	
 	 	8.0	 %	 	$	15,126	
 	 	$	13,294	
 	 	$	1,832	
 	 	13.8	 %	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Partners' share of Consolidated Joint Ventures	 	BXP's Share 2, 6	
 	Three Months Ended	 	$	 	%	 	Three Months Ended	 	$	 	%	
 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	 	31-Dec-18	 	31-Dec-17	 	Change	 	Change	
Rental Revenue	$	73,055	
 	 	$	70,875	
 	 	 	 	 	 	$	616,878	
 	 	$	589,970	
 	 	 	 	 	
Less: Termination income	115	
 	 	—	
 	 	 	 	 	 	4,333	
 	 	276	
 	 	 	 	 	
Rental revenue (excluding termination income)  2	72,940	
 	 	70,875	
 	 	$	2,065	
 	 	2.9	 %	 	612,545	
 	 	589,694	
 	 	$	22,851	
 	 	3.9	 %	
Less: Operating expenses and real estate taxes	28,135	
 	 	27,282	
 	 	853	
 	 	3.1	 %	 	230,487	
 	 	220,053	
 	 	10,434	
 	 	4.7	 %	
NOI (excluding termination income)  2,   3	$	44,805	
 	 	$	43,593	
 	 	$	1,212	
 	 	2.8	 %	 	$	382,058	
 	 	$	369,641	
 	 	$	12,417	
 	 	3.4	 %	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding termination income)  2	$	72,940	
 	 	$	70,875	
 	 	$	2,065	
 	 	2.9	 %	 	$	612,545	
 	 	$	589,694	
 	 	$	22,851	
 	 	3.9	 %	
Less: Straight-line rent and fair value lease revenue	2,413	
 	 	5,213	
 	 	(2,800	)	 	(53.7	)%	 	15,557	
 	 	27,315	
 	 	(11,758	)	 	(43.0	)%	
Add: Lease transaction costs that qualify as rent inducements  4	170	
 	 	16	
 	 	154	
 	 	962.5	 %	 	3,715	
 	 	694	
 	 	3,021	
 	 	435.3	 %	
Subtotal	70,697	
 	 	65,678	
 	 	5,019	
 	 	7.6	 %	 	600,703	
 	 	563,073	
 	 	37,630	
 	 	6.7	 %	
Less: Operating expenses and real estate taxes	28,135	
 	 	27,282	
 	 	853	
 	 	3.1	 %	 	230,487	
 	 	220,053	
 	 	10,434	
 	 	4.7	 %	
Add: Straight-line ground rent expense  5	—	
 	 	—	
 	 	—	
 	 	—	 %	 	887	
 	 	929	
 	 	(42	)	 	(4.5	)%	
NOI - cash (excluding termination income)  2,   3	$	42,562	
 	 	$	38,396	
 	 	$	4,166	
 	 	10.9	 %	 	$	371,103	
 	 	$	343,949	
 	 	$	27,154	
 	 	7.9	 %	
___________________
 	 	
1 	Includes 100% share of consolidated joint ventures but excludes Salesforce Tower because it is not a Same Property.	
 	 	
2 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
3 	For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 8-9.	
 	 	
4 	Consists 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.	
 	 	
5 	Excludes the straight-line impact of approximately $168 and $(31) for the three months ended December 31, 2018 and 2017, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 9.	
 	 	
6 	BXP's Share represents consolidated plus the Company' share of unconsolidated joint ventures less the partners' share of consolidated joint ventures.	

9

 	 	

	Q4 2018	 	
 	Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Maintenance capital expenditures	 	$	16,440	
 	 	$	25,011	
 	
Planned capital expenditures associated with acquisition properties	 	—	
 	 	—	
 	
Repositioning capital expenditures 1	 	9,605	
 	 	16,109	
 	
Hotel improvements, equipment upgrades and replacements	 	272	
 	 	211	
 	
Subtotal	 	26,317	
 	 	41,331	
 	
Add:	 	 	 	 	
BXP's share of maintenance capital expenditures from unconsolidated joint ventures (JVs)	 	919	
 	 	284	
 	
BXP's share of planned capital expenditures associated with acquisition properties from unconsolidated JVs	 	3,096	
 	 	2,749	
 	
BXP's share of repositioning capital expenditures from unconsolidated JVs	 	458	
 	 	1,208	
 	
Less:	 	 	 	 	
Partners' share of maintenance capital expenditures from consolidated JVs	 	572	
 	 	73	
 	
Partners' share of planned capital expenditures associated with acquisition properties from consolidated JVs	 	—	
 	 	—	
 	
Partners' share of repositioning capital expenditures from consolidated JVs	 	1,935	
 	 	2,796	
 	
BXP's Share of Capital Expenditures 2	 	$	28,283	
 	 	$	42,703	

 

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 3 	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Square feet	 	1,324,028	
 	 	872,514	
 	
Tenant improvements and lease commissions PSF	 	$	58.14	
 	 	$	78.23	

___________________
 	 	
1 	Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at 399 Park Avenue and 767 Fifth Avenue (the GM Building) (60% ownership) in New York City.	
 	 	
2 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
3 	Includes 100% of unconsolidated joint ventures.	

10

 	 	

	Q4 2018	 	
 	Acquisitions and dispositions

For the period from January 1, 2018 through December 31, 2018
(dollars in thousands)

ACQUISITIONS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	Investment	 	 	
Property	 	Location	 	Date Acquired	 	Square Feet	 	Initial	 	Anticipated Future	 	Total	 	Leased (%)	
3 Hudson Boulevard (25% ownership interest)	 	New York, NY	 	July 13, 2018	 	N/A	
 	 	$	125,556	
 	1 	$	62,223	
 	 	$	187,779	
 	 	N/A	
 	
Santa Monica Business Park (55% ownership interest)  2	 	Santa Monica, CA	 	July 19, 2018	 	1,178,124	
 	 	345,106	
 	 	28,894	
 	 	374,000	
 	 	94	%	
100 Causeway Street (50% ownership interest)  3	 	Boston, MA	 	July 27, 2018	 	N/A	
 	 	3,895	
 	 	263,405	
 	 	267,300	
 	 	N/A	
 	
Total Acquisitions	 	 	 	 	 	1,178,124	
 	 	$	474,557	
 	 	$	354,522	
 	 	$	829,079	
 	 	94	%	

DISPOSITIONS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property	 	Location	 	Date Disposed	 	Square Feet	 	Gross Sales Price	 	Net Cash Proceeds	 	Book Gain 4	 	 	
500 E Street, S.W.	 	Washington, DC	 	January 9, 2018	 	262,202	
 	 	$	127,600	
 	 	$	116,120	
 	 	$	96,397	
 	 	 	
91 Hartwell Avenue	 	Lexington, MA	 	May 24, 2018	 	119,216	
 	 	22,200	
 	 	21,680	
 	 	15,455	
 	 	 	
Quorum Office Park	 	Chelmsford, MA	 	September 27, 2018	 	267,527	
 	 	35,300	
 	 	34,328	
 	 	7,863	
 	 	 	
1333 New Hampshire Avenue 5	Washington, DC	 	November 30, 2018	 	315,371	
 	 	142,000	
 	 	133,691	
 	 	44,357	
 	 	 	
6595 Springfield Center Drive (TSA Headquarters) 6	 	Springfield, VA	 	December 13, 2018	 	634,000	
 	 	98,095	
 	 	97,139	
 	 	(8,699	)	 	 	
Tower Oaks (land parcel) 7	 	Rockville, MD	 	December 20, 2018	 	N/A	
 	 	45,975	
 	 	25,858	
 	 	15,650	
 	 	 	
Annapolis Junction Building One (50% ownership interest)  8	 	Annapolis, MD	 	December 31, 2018	 	117,599	
 	 	20,863	
 	 	—	
 	 	8,270	
 	 	 	
    Total Dispositions	 	 	 	 	 	1,715,915	
 	 	$	492,033	
 	 	$	428,816	
 	 	$	179,293	

__________________
 	 	
1 	The initial investment consists of the Company's initial equity investment and mortgage financing provided by the Company to the unconsolidated joint venture. The mortgage financing totals $80.0 million, bears interest at a variable rate equal to LIBOR plus 3.50% per annum and matures on July 13, 2023, with extension options, subject to certain conditions. The loan has been reflected as Related Party Note Receivable on the Company’s Consolidated Balance Sheets.	
 	 	
2 	At acquisition, the joint venture funded a portion of the acquisition with a $300 million mortgage loan.  The Company’s share of the investment is exclusive of this loan.	
 	 	
3 	See page 13 for additional information.	
 	 	
4 	Excludes approximately $2.6 million of gains on sales of real estate recognized during the year ended December 31, 2018 related to gain amounts from sales of real estate occurring in prior years.	
 	 	
5 	The gross sale price includes a $5.5 million payment to be received by the Company from the anchor tenant in January 2020, which is not included in the net cash proceeds.	
 	 	
6 	Reflects the sale of the land and project costs incurred through the closing date. The carrying value of the property exceeded the estimated net sales price, and as a result, the Company recognized an impairment loss, which is included in Impairment Losses on the Company's Consolidated Statements of Operations. Concurrently with the sale, the Company entered into development management and guarantee agreements with the buyer and will earn fees aggregating approximately $9.8 million.	
 	 	
7 	The net cash proceeds exclude financing provided by the Company to the buyer totaling $19.5 million, which matures on December 20, 2021.	
 	 	
8 	See page 34 for additional information.	

11

 	 	

	Q4 2018	 	
 	Construction in progress

as of December 31, 2018 
(dollars in thousands)
CONSTRUCTION IN PROGRESS 1 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Actual/Estimated	 	 	 	 	 	BXP's share	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	Estimated Total Investment  2	 	 	 	Amount Drawn at	 	Estimated Future Equity Requirement  2	 	 	 	Percentage placed in-service  4	 	Net Operating Income (Loss)  5 (BXP's share)	 	
 	 	Initial Occupancy	 	Stabilization Date	 	 	 	Square Feet	 	Investment to Date  2	 	 	 	Total Financing	 	 	 	 	 	Percentage Leased  3	 	 	 	 	 	 	 	 	 	 	 	
Construction Properties	 	 	 	 	Location	 	 	 	 	 	 	 	 	 	12/31/2018	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office and Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	The Hub on Causeway - Podium (50% ownership)	Q2 2019	 	Q4 2019	 	Boston, MA	 	385,000	
 	 	$	119,019	
 	 	$	141,870	
 	 	$	102,300	
 	 	$	59,016	
 	 	$	—	
 	 	88	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	145 Broadway	Q4 2019	 	Q4 2019	 	Cambridge, MA	 	485,000	
 	 	234,919	
 	 	366,400	
 	 	—	
 	 	—	
 	 	131,481	
 	 	98	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Dock 72 (50% ownership)	Q2 2019	 	Q3 2020	 	Brooklyn, NY	 	670,000	
 	 	156,698	
 	 	223,000	
 	 	125,000	
 	 	65,386	
 	 	6,688	
 	 	33	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	17Fifty Presidents Street	Q2 2020	 	Q3 2020	 	Reston, VA	 	276,000	
 	 	43,742	
 	 	142,900	
 	 	—	
 	 	—	
 	 	99,158	
 	 	100	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	20 CityPoint	Q3 2019	 	Q1 2021	 	Waltham, MA	 	211,000	
 	 	54,718	
 	 	97,000	
 	 	—	
 	 	—	
 	 	42,282	
 	 	63	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	100 Causeway Street (50% ownership)	Q2 2021	 	Q3 2022	 	Boston, MA	 	627,000	
 	 	54,374	
 	 	267,300	
 	 	—	
 	—	
 	—	
 	 	212,926	
 	 	70	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership)	Q3 2022	 	Q3 2022	 	Bethesda, MD	 	740,000	
 	 	54,194	
 	 	198,900	
 	 	—	
 	 	—	
 	 	144,706	
 	 	100	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Reston Gateway	Q4 2022	 	Q4 2023	 	Reston, VA	 	1,062,000	
 	 	34,385	
 	 	715,300	
 	 	—	
 	 	—	
 	 	680,915	
 	 	80	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Total Office Properties under Construction	 	4,456,000	 	$	752,049	
 	 	$	2,152,670	
 	 	$	227,300	
 	 	$	124,402	
 	 	$	1,318,156	
 	 	78	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Residential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	The Hub on Causeway - Residential (440 units) (50% ownership)	Q4 2019	 	Q4 2021	 	Boston, MA	 	320,000	
 	 	$	81,540	
 	 	$	153,500	
 	 	$	90,000	
 	 	$	20,235	
 	 	$	2,195	
 	 	 N/A	
 	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	MacArthur Station Residences (402 units) 6	Q2 2020	 	Q4 2021	 	Oakland, CA	 	324,000	
 	 	58,984	
 	 	263,600	
 	 	—	
 	 	—	
 	 	204,616	
 	 	 N/A	
 	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Total Residential Properties under Construction	 	644,000	
 	 	$	140,524	
 	 	$	417,100	
 	 	$	90,000	
 	 	$	20,235	
 	 	$	206,811	
 	 	N/A	
 	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Redevelopment Properties	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	One Five Nine East 53rd (55% ownership) 7	Q4 2019	 	Q4 2019	 	New York, NY	 	220,000	
 	 	$	103,988	
 	 	$	150,000	
 	 	$	—	
 	 	$	—	
 	 	$	46,012	
 	 	90	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Total Redevelopment Properties under Construction	 	220,000	
 	 	$	103,988	
 	 	$	150,000	
 	 	$	—	
 	 	$	—	
 	 	$	46,012	
 	 	90	%	 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Properties Under Construction and Redevelopment	 	5,320,000	
 	 	$	996,561	
 	 	$	2,719,770	
 	 	$	317,300	
 	 	$	144,637	
 	 	$	1,570,979	
 	 	78	%	8 	—	%	 	N/A	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

12

 	 	

	Q4 2018	 	
 	Construction in progress (continued)	 	

PROJECTS FULLY PLACED IN-SERVICE DURING 2018	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Actual/Estimated	 	 	 	 	 	BXP's Share	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	Estimated Total Investment  2	 	 	 	Amount Drawn at	 	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	 	 	 	 	 	 	 	 	 	12/31/2018	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
191 Spring Street	Q4 2017	 	Q4 2018	 	Lexington, MA	 	170,997	
 	 	$	46,909	
 	 	$	51,656	
 	 	$	—	
 	 	$	—	
 	 	$	4,747	
 	 	100	%	 	$	1,075	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Salesforce Tower (95% ownership) 9	Q4 2017	 	Q3 2019	 	San Francisco, CA	 	1,420,682	
 	 	1,068,413	
 	 	1,073,500	
 	 	—	
 	 	—	
 	 	7,873	
 	 	100	%	 	11,332	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proto Kendall Square (280 units)	Q2 2018	 	Q2 2019	 	Cambridge, MA	 	152,190	
 	 	142,039	
 	 	142,110	
 	 	—	
 	 	—	
 	 	71	
 	 	64	%	 	491	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proto Kendall Square - Retail	 	 	 	 	 	 	14,527	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	100	%	 	N/A	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Signature at Reston (508 units)	Q1 2018	 	Q2 2020	 	Reston, VA	 	493,241	
 	 	218,933	
 	 	234,854	
 	 	—	
 	 	—	
 	 	15,921	
 	 	53	%	 	604	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Signature at Reston - Retail	 	 	 	 	 	 	24,542	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	91	%	 	N/A	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Projects Placed In-Service	 	 	 	 	 	 	2,276,179	
 	 	$	1,476,294	
 	 	$	1,502,120	
 	 	$	—	
 	 	$	—	
 	 	$	28,612	
 	 	100	%	8 	$	13,502	

_____________
 	 	
1 	A 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.	
 	 	
2 	Includes income (loss) and interest carry on debt and equity investment.	
 	 	
3 	Represents percentage leased as of January 25, 2019 including leases with future commencement dates.	
 	 	
4 	Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.	
 	 	
5 	Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2018. See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
6 	Project is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.	
 	 	
7 	The increase in the Estimated Total Investment relates primarily to the costs of executing a thirty year lease on all of the office space plus costs associated with enhancements to the retail component of the project.	
 	 	
8 	Excludes residential units.	
 	 	
9 	Under the joint venture agreement, if the project is funded with 100% equity, the Company has agreed to fund 50% of its partner's equity requirement, in the form of preferred equity. The Company will fund an aggregate of approximately $25.4 million at a per annum interest rate of LIBOR plus 3.0% and receive priority distributions from all distributions to its partner until the principal and interest are repaid in full. As of December 31, 2018, the Company had funded an aggregate of $22.6 million.	

13

 	 	

	Q4 2018	 	
 	Land parcels and purchase options

as of December 31, 2018 

OWNED LAND PARCELS	

Location	Approximate Developable Square Feet	 	
Reston, VA	 	3,137,000	
 	
San Jose, CA 1	 	2,199,000	
 	
New York, NY (25% ownership)	 	2,000,000	
 	
Waltham, MA	 	605,000	
 	
Washington, DC (50% ownership)	 	520,000	
 	
Springfield, VA	 	422,000	
 	
Santa Clara, CA 1	 	414,000	
 	
Marlborough, MA	 	400,000	
 	
Dulles, VA	 	310,000	
 	
Annapolis, MD (50% ownership)	 	300,000	
 	
Gaithersburg, MD	 	240,000	
 	
         Total	10,547,000	

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS	

Location	Approximate Developable Square Feet	 	
Princeton, NJ 2	 	1,650,000	
 	
Boston, MA	 	1,300,000	
 	
San Jose, CA 3	 	1,078,000	
 	
San Francisco, CA	 	820,000	
 	
Cambridge, MA	 	623,000	
 	
Brooklyn, NY (50% ownership)	 	600,000	
 	
Washington, DC	 	482,000	
 	
         Total	6,553,000	

__________________
 	 	
1 	Excludes the existing square footage related to in-service properties being held for future re-development listed on pages 19-22.	
 	 	
2 	The Company acquired land parcels at its Carnegie Center property on January 10, 2019 for a purchase price of approximately $42.9 million. The seller will be entitled to receive additional payments in the future aggregating approximately $8.6 million, which are contingent on the development of each of the parcels.	
 	 	
3 	The Company closed on a ground lease on the Platform 16 site which is fully entitled for approximately 1.1 million square feet of future development. In February 2020 the Company will have an option for 12-months to acquire the land at a fixed cost of $134.8 million. 	

14

 	 	

	Q4 2018	 	
 	Leasing activity	 	

for the three months ended December 31, 2018 

ALL IN-SERVICE PROPERTIES	
 	 	 	 	
Net (increase)/decrease in available space (SF)	Total	
 	
Vacant space available at the beginning of the period	3,884,161	
 	
Less:	 	
Property dispositions/properties taken out of service	114,243	
 	
Add:	 	
Properties placed (and partially placed) in-service 1	845,684	
 	
Leases expiring or terminated during the period	1,000,448	
 	
Total space available for lease	5,616,050	

1st generation leases	432,125	
 	
2nd generation leases with new tenants	784,255	
 	
2nd generation lease renewals	539,773	
 	
Total space leased	1,756,153	

Vacant space available for lease at the end of the period	3,859,897	
 	
Net (increase)/decrease in available space	24,264	

 	 	
Second generation leasing information: 2	 	
Leases commencing during the period (SF)	1,324,028	
 	
Weighted average lease term (months)	101	
 	
Weighted average free rent period (days)	95	
 	
Total transaction costs per square foot 3	
 	$58.14	
 	
Increase (decrease) in gross rents 4	7.10	%	
Increase (decrease) in net rents 5	11.27	%	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	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 6	
 	 	gross 4	
 	 	net 5	
 	 	 	
Boston	57,329	
 	 	409,713	
 	 	467,042	
 	 	19.06	 %	 	34.13	 %	 	281,181	
 	
Los Angeles	—	
 	 	18,436	
 	 	18,436	
 	 	7.59	 %	 	11.30	 %	 	15,315	
 	
New York	—	
 	 	435,649	
 	 	435,649	
 	 	1.63	 %	 	2.62	 %	 	972,190	
 	
San Francisco	374,796	
 	 	169,927	
 	 	544,723	
 	 	20.07	 %	 	27.74	 %	 	330,333	
 	
Washington, DC	—	
 	 	290,303	
 	 	290,303	
 	 	(0.21	)%	 	(0.3	)%	 	219,349	
 	
Total / Weighted Average	432,125	
 	 	1,324,028	
 	 	1,756,153	
 	 	7.10	 %	 	11.27	 %	 	1,818,368	

_____________
 	 	
1 	Total square feet of properties placed (and partially placed) in-service in Q4 2018 consists of 43,902 square feet at 191 Spring Street and 801,782 square feet at Salesforce Tower.	
 	 	
2 	Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,324,028 square feet of second generation leases that commenced in Q4 2018, leases for 1,164,428 square feet were signed in prior periods.	
 	 	
3 	Total transaction costs include tenant improvements and leasing commissions but exclude free rent concessions.	
 	 	
4 	Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 879,438 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying "swing space").	
 	 	
5 	Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 879,438 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying "swing space").	
 	 	
6 	Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.	
 	 	
7 	Represents 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 159,600.	

15

 	 	

	Q4 2018	 	
 	Portfolio overview	 	

for the three months ended December 31, 2018 
(dollars in thousands)

Rentable square footage of in-service properties by location and unit type 1, 2 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Office	 	Retail	 	Residential	 	Hotel	 	Total	
Boston	 	12,785,997	
 	 	934,150	
 	 	229,670	
 	 	330,000	
 	 	14,279,817	
 	
Los Angeles	 	2,181,954	
 	 	113,817	
 	 	—	
 	 	—	
 	 	2,295,771	
 	
New York	 	11,089,420	
 	 	370,749	
 	 	—	
 	 	—	
 	 	11,460,169	
 	
San Francisco	 	7,185,099	
 	 	325,672	
 	 	—	
 	 	—	
 	 	7,510,771	
 	
Washington, DC	 	9,217,636	
 	 	679,806	
 	 	822,436	
 	 	—	
 	 	10,719,878	
 	
Total	 	42,460,106	
 	 	2,424,194	
 	 	1,052,106	
 	 	330,000	
 	 	46,266,406	
 	
% of Total	 	91.77	%	 	5.24	%	 	2.28	%	 	0.71	%	 	100.00	%	

Rental revenue of in-service properties by unit type 1 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Office	 	Retail	 	Residential	 	Hotel 3	 	Total	
Consolidated	 	$	616,269	
 	 	$	56,074	
 	 	$	6,741	
 	 	$	11,659	
 	 	$	690,743	
 	
Less:	 	 	 	 	 	 	 	 	 	—	
 	
Partners' share from consolidated joint ventures 4	 	66,904	
 	 	7,572	
 	 	—	
 	 	—	
 	 	74,476	
 	
Add:	 	 	 	 	 	 	 	 	 	—	
 	
BXP's share from unconsolidated joint ventures 5	 	37,881	
 	 	1,726	
 	 	—	
 	 	—	
 	 	39,607	
 	
BXP's Share of Rental revenue 1	 	$	587,246	
 	 	$	50,228	
 	 	$	6,741	
 	 	$	11,659	
 	 	$	655,874	
 	
% of Total	 	89.53	%	 	7.66	%	 	1.03	%	 	1.78	%	 	100.00	%	

Percentage of BXP's Share of net operating income (NOI) (excluding termination income) by location 1, 6 	
 	 	 	 	 	 	 	 	 	
 	CBD	
 	 	Suburban	
 	 	Total	
 	
Boston	25.75	%	 	6.82	%	 	32.57	%	
Los Angeles	3.84	%	 	—	%	 	3.84	%	
New York	24.85	%	 	2.53	%	 	27.38	%	
San Francisco	14.96	%	 	3.44	%	 	18.40	%	
Washington, DC	7.34	%	 	10.47	%	 	17.81	%	
Total	76.74	%	 	23.26	%	 	100.00	%	

_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	Includes 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 19-22.	
 	 	
3 	Excludes approximately $86 of revenue from retail tenants that is included in Retail.	
 	 	
4 	See page 58 for additional information.	
 	 	
5 	See page 60 for additional information.	
 	 	
6 	BXP's Share of Net Operating Income (NOI) (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP's Share of NOI (excluding termination income), see page 8.	

16

 	 	

	Q4 2018	 	
 	Residential and hotel performance	 	

(dollars in thousands)

RESULTS OF OPERATIONS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Residential 1	 	Hotel	
 	Three Months Ended	 	Three Months Ended	
 	31-Dec-18	 	30-Sep-18	 	31-Dec-18	 	30-Sep-18	
Rental Revenue	$	7,273	
 	 	$	6,320	
 	 	$	11,745	
 	 	$	13,664	
 	
Operating expenses and real estate taxes	3,694	
 	 	3,724	
 	 	8,221	
 	 	8,828	
 	
Net Operating Income (NOI) 2	3,579	
 	 	2,596	
 	 	3,524	
 	 	4,836	

Rental Revenue	$	7,273	
 	 	$	6,320	
 	 	$	11,745	
 	 	$	13,664	
 	
Less: Straight line rent and fair value lease revenue	24	
 	 	20	
 	 	(6	)	 	(6	)	
Subtotal	7,249	
 	 	6,300	
 	 	11,751	
 	 	13,670	
 	
Less: Operating expenses and real estate taxes	3,694	
 	 	3,724	
 	 	8,221	
 	 	8,828	
 	
NOI - cash basis 2	$	3,555	
 	 	$	2,576	
 	 	$	3,530	
 	 	$	4,842	

RENTAL RATES AND OCCUPANCY - Year-over-Year	
 	 	 	 	 	 	 	 	 	 	 	
 	Three Months Ended	 	Percent	
 	31-Dec-18	 	31-Dec-17	 	Change	
The Avant at Reston Town Center (359 units), Reston, VA 2, 3	 	 	 	 	 	
Average Monthly Rental Rate	$	2,435	
 	 	$	2,390	
 	 	1.88	 %	
Average Rental Rate Per Occupied Square Foot	$	2.66	
 	 	$	2.65	
 	 	0.38	 %	
Average Physical Occupancy	90.90	%	 	93.69	%	 	(2.98	)%	
Average Economic Occupancy	90.64	%	 	92.03	%	 	(1.51	)%	
 	 	 	 	 	 	
The Lofts at Atlantic Wharf (86 units), Boston, MA 2, 3	 	 	 	 	 	
Average Monthly Rental Rate	$	4,394	
 	 	$	4,237	
 	 	3.71	 %	
Average Rental Rate Per Occupied Square Foot	$	4.83	
 	 	$	4.69	
 	 	2.99	 %	
Average Physical Occupancy	96.12	%	 	93.80	%	 	2.47	 %	
Average Economic Occupancy	96.29	%	 	93.20	%	 	3.32	 %	
 	 	 	 	 	 	
Signature at Reston (508 units), Reston, VA 2, 3	 	 	 	 	 	
Average Monthly Rental Rate	$	2,241	
 	 	N/A	
 	 	N/A	
 	
Average Rental Rate Per Occupied Square Foot	$	2.49	
 	 	N/A	
 	 	N/A	
 	
Average Physical Occupancy	45.47	%	 	N/A	
 	 	N/A	
 	
Average Economic Occupancy	38.63	%	 	N/A	
 	 	N/A	

Proto Kendall Square (280 units), Cambridge, MA 2, 3	 	 	 	 	 	
Average Monthly Rental Rate	$	2,655	
 	 	N/A	
 	 	N/A	
 	
Average Rental Rate Per Occupied Square Foot	$	4.91	
 	 	N/A	
 	 	N/A	
 	
Average Physical Occupancy	51.90	%	 	N/A	
 	 	N/A	
 	
Average Economic Occupancy	47.33	%	 	N/A	
 	 	N/A	

Boston Marriott Cambridge (437 rooms), Cambridge, MA 3	 	 	 	 	 	
Average Occupancy	75.40	%	
 	76.70	%	 	(1.69	)%	
Average Daily Rate	$	295.06	
 	
 	$	285.11	
 	 	3.49	 %	
Revenue Per Available Room	$	290.00	
 	
 	$	289.19	
 	 	0.28	 %	

_____________
 	 	
1 	Includes retail space.	
 	 	
2 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
3 	Excludes retail space.	

17

 	 	

	Q4 2018	 	
 	In-service property listing	 	

as of December 31, 2018 

 	 	 	Sub Market	 	Number of Buildings	 	Square Feet	
 	 	Leased % 1	
 	 	Annualized Rental Obligations Per Leased SF  2	
 	
BOSTON	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	
 	200 Clarendon Street	 	CBD Boston MA	 	1	 	1,763,530	
 	 	98.2	%	 	$	65.70	
 	
 	100 Federal Street (55% ownership)	 	CBD Boston MA	 	1	 	1,238,184	
 	 	98.2	%	 	59.66	
 	
 	800 Boylston Street - The Prudential Center	 	CBD Boston MA	 	1	 	1,235,538	
 	 	97.8	%	 	62.33	
 	
 	111 Huntington Avenue - The Prudential Center	 	CBD Boston MA	 	1	 	860,455	
 	 	100.0	%	 	64.40	
 	
 	Atlantic Wharf Office (55% ownership)	 	CBD Boston MA	 	1	 	793,827	
 	 	100.0	%	 	71.50	
 	
 	Prudential Center (retail shops) 3	 	CBD Boston MA	 	1	 	595,334	
 	 	96.1	%	 	86.41	
 	
 	101 Huntington Avenue - The Prudential Center	 	CBD Boston MA	 	1	 	506,476	
 	 	94.3	%	 	50.52	
 	
 	888 Boylston Street - The Prudential Center	 	CBD Boston MA	 	1	 	363,320	
 	 	95.1	%	 	72.56	
 	
 	Star Market at the Prudential Center 3	 	CBD Boston MA	 	1	 	57,235	
 	 	100.0	%	 	54.44	
 	
 	Subtotal	 	 	 	9	 	7,413,899	
 	 	97.9	%	 	$	65.52	

 	355 Main Street	 	East Cambridge MA	 	1	 	265,342	
 	 	100.0	%	 	$	72.27	
 	
 	90 Broadway	 	East Cambridge MA	 	1	 	223,771	
 	 	96.6	%	 	64.35	
 	
 	255 Main Street	 	East Cambridge MA	 	1	 	216,023	
 	 	92.4	%	 	77.72	
 	
 	300 Binney Street	 	East Cambridge MA	 	1	 	195,191	
 	 	100.0	%	 	58.51	
 	
 	150 Broadway	 	East Cambridge MA	 	1	 	177,226	
 	 	100.0	%	 	48.20	
 	
 	105 Broadway	 	East Cambridge MA	 	1	 	152,664	
 	 	100.0	%	 	65.14	
 	
 	325 Main Street	 	East Cambridge MA	 	1	 	115,361	
 	 	100.0	%	 	50.41	
 	
 	250 Binney Street	 	East Cambridge MA	 	1	 	67,362	
 	 	100.0	%	 	45.05	
 	
 	University Place	 	Mid-Cambridge MA	 	1	 	195,282	
 	 	100.0	%	 	48.95	
 	
 	Subtotal	 	 	 	9	 	1,608,222	
 	 	98.5	%	 	$	61.15	

 	Bay Colony Corporate Center	 	Route 128 Mass Turnpike MA	 	4	 	1,000,449	
 	 	93.4	%	 	$	42.50	
 	
 	Reservoir Place	 	Route 128 Mass Turnpike MA	 	1	 	526,985	
 	 	92.7	%	 	36.68	
 	
 	140 Kendrick Street	 	Route 128 Mass Turnpike MA	 	3	 	380,987	
 	 	100.0	%	 	38.81	
 	
 	Weston Corporate Center	 	Route 128 Mass Turnpike MA	 	1	 	356,995	
 	 	100.0	%	 	52.88	
 	
 	Waltham Weston Corporate Center	 	Route 128 Mass Turnpike MA	 	1	 	301,667	
 	 	89.8	%	 	37.90	
 	
 	230 CityPoint	 	Route 128 Mass Turnpike MA	 	1	 	296,306	
 	 	93.5	%	 	39.19	
 	
 	200 West Street	 	Route 128 Mass Turnpike MA	 	1	 	256,245	
 	 	79.7	%	 	39.09	
 	
 	10 CityPoint	 	Route 128 Mass Turnpike MA	 	1	 	241,199	
 	 	98.1	%	 	51.02	
 	
 	77 CityPoint	 	Route 128 Mass Turnpike MA	 	1	 	209,707	
 	 	100.0	%	 	47.43	
 	
 	1265 Main Street (50% ownership) 4	 	Route 128 Mass Turnpike MA	 	1	 	114,969	
 	 	100.0	%	 	44.82	
 	
 	Reservoir Place North	 	Route 128 Mass Turnpike MA	 	1	 	73,258	
 	 	—	%	 	—	
 	
 	195 West Street	 	Route 128 Mass Turnpike MA	 	1	 	63,500	
 	 	100.0	%	 	41.42	
 	
 	The Point 3	 	Route 128 Mass Turnpike MA	 	1	 	16,300	
 	 	84.7	%	 	55.93	
 	
 	191 Spring Street 5	 	Route 128 Northwest MA	 	1	 	170,997	
 	 	100.0	%	 	43.16	
 	
 	Lexington Office Park	 	Route 128 Northwest MA	 	2	 	166,775	
 	 	77.3	%	 	29.90	
 	
 	201 Spring Street	 	Route 128 Northwest MA	 	1	 	106,300	
 	 	100.0	%	 	41.67	
 	
 	33 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	80,872	
 	 	100.0	%	 	44.88	
 	
 	32 Hartwell Avenue	 	Route 128 Northwest MA	 	1	 	69,154	
 	 	100.0	%	 	28.57	
 	
 	164 Lexington Road	 	Route 128 Northwest MA	 	1	 	64,140	
 	 	—	%	 	—	
 	
 	100 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	55,924	
 	 	100.0	%	 	43.26	
 	
 	181 Spring Street	 	Route 128 Northwest MA	 	1	 	55,793	
 	 	100.0	%	 	39.71	
 	
 	92 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	31,100	
 	 	100.0	%	 	42.48	
 	
 	17 Hartwell Avenue	 	Route 128 Northwest MA	 	1	 	30,000	
 	 	100.0	%	 	45.09	
 	
 	Subtotal	 	 	 	29	 	4,669,622	
 	 	91.7	%	 	$	41.95	

 	Boston Office Total:	 	 	 	47	 	13,691,743	
 	 	95.9	%	 	$	57.26	

Residential	 	 	 	 	 	 	 	 	 	 	
 	Proto Kendall Square (280 units) 5	 	East Cambridge MA	 	1	 	166,717	
 	 	 	 	 	
 	The Lofts at Atlantic Wharf (86 units)	 	CBD Boston MA	 	1	 	87,097	
 	 	 	 	 	
 	Boston Residential Total:	 	 	 	2	 	253,814	

18

 	 	

	Q4 2018	 	
 	In-service property listing (continued)	 	

as of December 31, 2018 

 	 	 	Sub Market	 	Number of Buildings	 	Square Feet	
 	 	Leased % 1	
 	 	Annualized Rental Obligations Per Leased SF  2	
 	
BOSTON (continued)	 	 	 	 	 	 	 	 	 	 	
Hotel	 	 	 	 	 	 	 	 	 	 	
 	Boston Marriott Cambridge (437 rooms)
	 	East Cambridge MA	 	1	 	334,260	
 	 	 	 	 	
 	Boston Hotel Total:	 	 	 	1	 	334,260	

 	Boston Total:	 	 	 	50	 	14,279,817	

LOS ANGELES	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	
 	Colorado Center (50% ownership) 4	 	West Los Angeles CA	 	6	 	1,117,647	
 	 	99.3	%	 	$	62.66	
 	
 	Santa Monica Business Park (55% ownership) 4, 5	 	West Los Angeles CA	 	14	 	1,103,882	
 	 	94.5	%	 	50.63	
 	
 	Santa Monica Business Park Retail (55% ownership) 3, 4, 5	 	West Los Angeles CA	 	7	 	74,242	
 	 	92.3	%	 	49.82	
 	
 	Subtotal	 	 	 	27	 	2,295,771	
 	 	96.7	%	 	$	56.64	

 	Los Angeles Total:	 	 	27	 	2,295,771	
 	 	96.7	%	 	$	56.64	

NEW YORK	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	
 	767 Fifth Avenue (The GM Building) (60% ownership)	 	Plaza District NY	 	1	 	1,853,995	
 	 	90.2	%	 	$	160.65	
 	
 	399 Park Avenue	 	Park Avenue NY	 	1	 	1,573,999	
 	 	73.3	%	 	93.19	
 	
 	601 Lexington Avenue (55% ownership)	 	Park Avenue NY	 	1	 	1,435,543	
 	 	99.3	%	 	98.89	
 	
 	599 Lexington Avenue	 	Park Avenue NY	 	1	 	1,062,481	
 	 	98.9	%	 	90.77	
 	
 	Times Square Tower (55% ownership)	 	Times Square NY	 	1	 	1,247,805	
 	 	98.8	%	 	79.32	
 	
 	250 West 55th Street	 	Times Square / West Side NY	 	1	 	967,323	
 	 	97.2	%	 	91.37	
 	
 	510 Madison Avenue	 	Fifth/Madison Avenue NY	 	1	 	355,592	
 	 	98.1	%	 	131.21	
 	
 	540 Madison Avenue (60% ownership) 4	 	Fifth/Madison Avenue NY	 	1	 	283,727	
 	 	82.3	%	 	101.07	
 	
 	Subtotal	 	 	 	8	 	8,780,465	
 	 	91.8	%	 	$	107.44	

 	One Tower Center	 	East Brunswick NJ	 	1	 	412,060	
 	 	36.1	%	 	$	30.85	
 	
 	Subtotal	 	 	 	1	 	412,060	
 	 	36.1	%	 	$	30.85	

 	510 Carnegie Center	 	Princeton NJ	 	1	 	234,160	
 	 	100.0	%	 	$	36.19	
 	
 	206 Carnegie Center	 	Princeton NJ	 	1	 	161,763	
 	 	100.0	%	 	33.47	
 	
 	210 Carnegie Center	 	Princeton NJ	 	1	 	159,468	
 	 	100.0	%	 	36.06	
 	
 	212 Carnegie Center	 	Princeton NJ	 	1	 	151,547	
 	 	65.5	%	 	34.91	
 	
 	214 Carnegie Center	 	Princeton NJ	 	1	 	148,942	
 	 	49.1	%	 	37.56	
 	
 	506 Carnegie Center	 	Princeton NJ	 	1	 	140,312	
 	 	32.3	%	 	40.34	
 	
 	508 Carnegie Center	 	Princeton NJ	 	1	 	134,433	
 	 	100.0	%	 	35.20	
 	
 	202 Carnegie Center	 	Princeton NJ	 	1	 	134,381	
 	 	85.2	%	 	38.55	
 	
 	804 Carnegie Center	 	Princeton NJ	 	1	 	130,000	
 	 	100.0	%	 	37.10	
 	
 	504 Carnegie Center	 	Princeton NJ	 	1	 	121,990	
 	 	100.0	%	 	32.53	
 	
 	101 Carnegie Center	 	Princeton NJ	 	1	 	121,620	
 	 	100.0	%	 	36.98	
 	
 	502 Carnegie Center	 	Princeton NJ	 	1	 	121,460	
 	 	94.8	%	 	36.75	
 	
 	701 Carnegie Center	 	Princeton NJ	 	1	 	120,000	
 	 	100.0	%	 	40.02	
 	
 	104 Carnegie Center	 	Princeton NJ	 	1	 	102,830	
 	 	27.0	%	 	36.71	
 	
 	103 Carnegie Center	 	Princeton NJ	 	1	 	96,332	
 	 	69.9	%	 	31.87	
 	
 	105 Carnegie Center	 	Princeton NJ	 	1	 	69,955	
 	 	56.3	%	 	34.52	
 	
 	302 Carnegie Center	 	Princeton NJ	 	1	 	64,926	
 	 	96.1	%	 	35.52	
 	
 	211 Carnegie Center	 	Princeton NJ	 	1	 	47,025	
 	 	100.0	%	 	34.61	
 	
 	201 Carnegie Center	 	Princeton NJ	 	—	 	6,500	
 	 	100.0	%	 	34.94	
 	
 	Subtotal	 	 	18	 	2,267,644	
 	 	83.0	%	 	$	36.01	

 	New York Total:	 	 	 	27	 	11,460,169	
 	 	88.0	%	 	$	92.97	

19

 	 	

	Q4 2018	 	
 	In-service property listing (continued)	 	

as of December 31, 2018 

 	 	 	Sub Market	 	Number of Buildings	 	Square Feet	
 	 	Leased % 1	
 	 	Annualized Rental Obligations Per Leased SF  2	
 	 	
SAN FRANCISCO	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	
 	Salesforce Tower (95% ownership) 5	 	CBD San Francisco CA	 	1	 	1,420,682	
 	 	69.9	%	 	$	84.76	
 	 	
 	Embarcadero Center Four	 	CBD San Francisco CA	 	1	 	939,760	
 	 	87.6	%	 	72.18	
 	 	
 	Embarcadero Center One	 	CBD San Francisco CA	 	1	 	830,248	
 	 	83.5	%	 	64.24	
 	 	
 	Embarcadero Center Two	 	CBD San Francisco CA	 	1	 	791,294	
 	 	98.3	%	 	70.58	
 	 	
 	Embarcadero Center Three	 	CBD San Francisco CA	 	1	 	781,900	
 	 	96.8	%	 	62.99	
 	 	
 	680 Folsom Street	 	CBD San Francisco CA	 	2	 	524,793	
 	 	100.0	%	 	62.71	
 	 	
 	535 Mission Street	 	CBD San Francisco CA	 	1	 	307,235	
 	 	100.0	%	 	77.12	
 	 	
 	690 Folsom Street	 	CBD San Francisco CA	 	1	 	26,080	
 	 	100.0	%	 	74.03	
 	 	
 	Subtotal	 	 	 	9	 	5,621,992	
 	 	87.2	%	 	$	71.23	

 	601 and 651 Gateway	 	South San Francisco CA	 	2	 	506,279	
 	 	94.5	%	 	$	43.69	
 	 	
 	611 Gateway	 	South San Francisco CA	 	1	 	260,197	
 	 	50.4	%	 	43.02	
 	 	
 	Mountain View Research Park	 	Mountain View CA	 	15	 	542,289	
 	 	95.5	%	 	48.54	
 	 	
 	2440 West El Camino Real	 	Mountain View CA	 	1	 	141,392	
 	 	100.0	%	 	74.20	
 	 	
 	453 Ravendale Drive	 	Mountain View CA	 	1	 	29,620	
 	 	100.0	%	 	44.04	
 	 	
 	3625-3635 Peterson Way 6	 	Santa Clara CA	 	1	 	218,366	
 	 	100.0	%	 	23.11	
 	 	
 	North First Business Park 6	 	San Jose CA	 	5	 	190,636	
 	 	90.6	%	 	24.27	
 	 	
 	Subtotal	 	 	 	26	 	1,888,779	
 	 	89.5	%	 	$	43.04	

 	San Francisco Total:	 	 	 	35	 	7,510,771	
 	 	87.8	%	 	$	64.00	

WASHINGTON, DC	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	
 	Capital Gallery	 	Southwest Washington DC	 	1	 	631,029	
 	 	100.0	%	 	$	61.45	
 	 	
 	Metropolitan Square (20% ownership) 4	 	East End Washington DC	 	1	 	613,425	
 	 	83.6	%	 	67.41	
 	 	
 	901 New York Avenue (25% ownership) 4	 	East End Washington DC	 	1	 	539,435	
 	 	90.9	%	 	67.66	
 	 	
 	601 Massachusetts Avenue	 	East End Washington DC	 	1	 	478,818	
 	 	98.4	%	 	80.38	
 	 	
 	Market Square North (50% ownership) 4	 	East End Washington DC	 	1	 	415,499	
 	 	82.5	%	 	67.43	
 	 	
 	2200 Pennsylvania Avenue	 	CBD Washington DC	 	1	 	458,831	
 	 	100.0	%	 	93.80	
 	 	
 	1330 Connecticut Avenue	 	CBD Washington DC	 	1	 	251,874	
 	 	87.2	%	 	68.43	
 	 	
 	Sumner Square	 	CBD Washington DC	 	1	 	208,892	
 	 	97.6	%	 	53.48	
 	 	
 	500 North Capitol Street, N.W. (30% ownership) 4	 	Capitol Hill Washington DC	 	1	 	230,860	
 	 	100.0	%	 	72.01	
 	 	
 	Subtotal	 	 	 	9	 	3,828,663	
 	 	93.0	%	 	$	70.92	

 	South of Market	 	Reston VA	 	3	 	623,666	
 	 	80.5	%	 	$	58.33	
 	 	
 	Fountain Square	 	Reston VA	 	2	 	497,259	
 	 	90.6	%	 	51.52	
 	 	
 	One Freedom Square	 	Reston VA	 	1	 	432,585	
 	 	96.8	%	 	51.91	
 	 	
 	Two Freedom Square	 	Reston VA	 	1	 	421,757	
 	 	98.7	%	 	50.52	
 	 	
 	One and Two Discovery Square	 	Reston VA	 	2	 	366,990	
 	 	96.9	%	 	47.73	
 	 	
 	One Reston Overlook	 	Reston VA	 	1	 	319,519	
 	 	100.0	%	 	41.64	
 	 	
 	Reston Corporate Center	 	Reston VA	 	2	 	261,046	
 	 	100.0	%	 	42.37	
 	 	
 	Democracy Tower	 	Reston VA	 	1	 	259,441	
 	 	100.0	%	 	54.98	
 	 	
 	Fountain Square Retail 3	 	Reston VA	 	1	 	223,030	
 	 	98.0	%	 	55.43	
 	 	
 	Two Reston Overlook	 	Reston VA	 	1	 	134,615	
 	 	100.0	%	 	40.98	
 	 	
 	Subtotal	 	 	 	15	 	3,539,908	
 	 	94.2	%	 	$	50.48	

 	Wisconsin Place Office	 	Montgomery County MD	 	1	 	299,186	
 	 	99.0	%	 	$	56.07	
 	 	
 	2600 Tower Oaks Boulevard 7	 	Montgomery County MD	 	1	 	179,421	
 	 	52.6	%	 	29.96	
 	 	
 	New Dominion Technology Park - Building Two	 	Herndon VA	 	1	 	257,400	
 	 	100.0	%	 	42.80	
 	 	
 	New Dominion Technology Park - Building One	 	Herndon VA	 	1	 	235,201	
 	 	100.0	%	 	35.65	
 	 	
 	Kingstowne Two	 	Springfield VA	 	1	 	156,089	
 	 	63.4	%	 	38.22	
 	 	
 	Kingstowne One	 	Springfield VA	 	1	 	151,483	
 	 	86.4	%	 	36.92	
 	 	
 	7601 Boston Boulevard	 	Springfield VA	 	1	 	114,028	
 	 	100.0	%	 	19.31	

 	 	 	 	 	 	 	 	 	 	 	 	 	

20

 	 	

	Q4 2018	 	
 	In-service property listing (continued)	 	

as of December 31, 2018 

 	 	 	Sub Market	 	Number of Buildings	 	Square Feet	
 	 	Leased % 1	
 	 	Annualized Rental Obligations Per Leased SF  2	
 	 	
WASHINGTON, DC (continued)	 	 	 	 	 	 	 	 	 	 	 	
 	7435 Boston Boulevard	 	Springfield VA	 	1	 	103,557	
 	 	83.4	%	 	23.62	
 	 	
 	8000 Grainger Court	 	Springfield VA	 	1	 	88,775	
 	 	—	%	 	—	
 	 	
 	Kingstowne Retail 3	 	Springfield VA	 	1	 	88,288	
 	 	100.0	%	 	37.59	
 	 	
 	7500 Boston Boulevard	 	Springfield VA	 	1	 	79,971	
 	 	100.0	%	 	16.95	
 	 	
 	7501 Boston Boulevard	 	Springfield VA	 	1	 	75,756	
 	 	100.0	%	 	29.92	
 	 	
 	7450 Boston Boulevard	 	Springfield VA	 	1	 	62,402	
 	 	100.0	%	 	16.25	
 	 	
 	7374 Boston Boulevard	 	Springfield VA	 	1	 	57,321	
 	 	100.0	%	 	18.33	
 	 	
 	8000 Corporate Court	 	Springfield VA	 	1	 	52,539	
 	 	100.0	%	 	15.18	
 	 	
 	7451 Boston Boulevard	 	Springfield VA	 	1	 	45,615	
 	 	67.4	%	 	26.98	
 	 	
 	7300 Boston Boulevard	 	Springfield VA	 	1	 	32,000	
 	 	100.0	%	 	17.00	
 	 	
 	7375 Boston Boulevard	 	Springfield VA	 	1	 	26,865	
 	 	100.0	%	 	26.71	
 	 	
 	Annapolis Junction Building Seven (50% ownership) 4	 	Anne Arundel County MD	 	1	 	127,229	
 	 	100.0	%	 	35.84	
 	 	
 	Annapolis Junction Building Eight (50% ownership) 4	 	Anne Arundel County MD	 	1	 	125,685	
 	 	—	%	 	—	
 	 	
 	Annapolis Junction Building Six (50% ownership) 4	 	Anne Arundel County MD	 	1	 	119,339	
 	 	75.2	%	 	31.94	
 	 	
 	Subtotal	 	 	 	21	 	2,478,150	
 	 	82.2	%	 	$	34.88	

 	Washington, DC Office Total:	 	 	 	45	 	9,846,721	
 	 	90.7	%	 	$	55.04	

Residential	 	 	 	 	 	 	 	 	 	 	 	
 	Signature at Reston (508 units) 5	 	Reston VA	 	1	 	517,783	
 	 	 	 	 	 	
 	The Avant at Reston Town Center (359 units)	 	Reston VA	 	1	 	355,374	
 	 	 	 	 	 	
 	Washington, DC Residential Total:	 	 	 	2	 	873,157	

 	Washington, DC Total:	 	 	 	47	 	10,719,878	

 	Total In-Service Properties:	 	 	 	186	 	46,266,406	
 	 	91.4	%	8 	
 	$	66.63	
 	8 	

_____________
 	 	
1 	Represents signed leases for which revenue recognition has commenced in accordance with GAAP.	
 	 	
2 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
3 	This is a retail property.	
 	 	
4 	This is an unconsolidated joint venture property.	
 	 	
5 	Not included in the Same Property analysis.	
 	 	
6 	Property held for redevelopment.	
 	 	
7 	On January 24, 2019, the Company completed the sale of this property. For additional information, reference the Company's fourth quarter earnings press release.	
 	 	
8 	Excludes Hotel and Residential properties. For additional detail, see page 18.	

21

 	 	

	Q4 2018	 	
 	Top 20 tenants listing and portfolio tenant diversification	 	

as of December 31, 2018 
TOP 20 TENANTS	
 	 	 	 	 	 	 	 	
No.	 	Tenant	 	BXP's Share of Annualized Rental Obligations  1	 	
1	
 	 	Arnold & Porter Kaye Scholer	 	 	3.10	%	
2	
 	 	US Government	 	 	1.99	%	
3	
 	 	salesforce.com 2	 	 	1.90	%	
4	
 	 	Biogen	 	 	1.86	%	
5	
 	 	Kirkland & Ellis	 	 	1.68	%	
6	
 	 	Shearman & Sterling	 	 	1.62	%	
7	
 	 	Google	 	 	1.58	%	
8	
 	 	Ropes & Gray	 	 	1.47	%	
9	
 	 	O'Melveny & Myers	 	 	1.15	%	
10	
 	 	Wellington Management	 	 	1.15	%	
11	
 	 	Weil Gotshal & Manges	 	 	1.05	%	
12	
 	 	WeWork	 	 	1.02	%	
13	
 	 	Bank of America	 	 	0.95	%	
14	
 	 	Aramis (Estee Lauder)	 	 	0.95	%	
15	
 	 	Apple	 	 	0.92	%	
16	
 	 	Mass Financial Services	 	 	0.91	%	
17	
 	 	Hunton Andrews Kurth	 	 	0.81	%	
18	
 	 	Starr Indemnity & Liability Co.	 	 	0.80	%	
19	
 	 	Morrison & Foerster	 	 	0.78	%	
20	
 	 	Genentech	 	 	0.75	%	
 	 	BXP's Share of Annualized Rental Obligations	
 	26.45	%	
 	 	BXP's Share of Square Feet	 	 	22.01	%	

NOTABLE SIGNED DEALS 3 	
 	 	 	 	 	 	
Tenant	 	Property	 	Square Feet	
 	
Fannie Mae	 	Reston Gateway	 	850,000	
 	
Marriott International 4	 	7750 Wisconsin Avenue	 	733,000	
 	
Akamai Technologies	 	145 Broadway	 	477,000	
 	
Verizon	 	100 Causeway Street	 	440,000	
 	
Millennium Management	 	399 Park Avenue	 	309,000	
 	
Wilmer Cutler Pickering Hale	 	2100 Pennsylvania Avenue	 	287,000	

TENANT DIVERSIFICATION 1 	

_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	As of December 31, 2018, the Company had commenced revenue recognition on approximately 580,000 square feet of the approximately 886,000 square feet leased to salesforce.com.	
 	 	
3 	Represents leases signed with occupancy commencing in the future.	
 	 	
4 	Subject to adjustment based on final building design, which is currently estimated to be approximately 740,000 rentable square feet, see page 13.	

22

 	 	

	Q4 2018	 	
 	Occupancy by location	 	

as of December 31, 2018 

TOTAL IN-SERVICE OFFICE PROPERTIES 1 - Quarter-over-Quarter	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	CBD	 	Suburban	 	Total	
Location	 	31-Dec-18	 	30-Sep-18	 	31-Dec-18	 	30-Sep-18	 	31-Dec-18	 	30-Sep-18	
Boston	 	98.0	%	 	97.1	%	 	91.7	%	 	91.7	%	 	95.9	%	 	95.3	%	
Los Angeles	 	96.7	%	 	96.2	%	 	—	%	 	—	%	 	96.7	%	 	96.2	%	
New York	 	91.8	%	 	90.6	%	 	75.8	%	 	74.9	%	 	88.0	%	 	86.9	%	
San Francisco	 	87.2	%	 	92.8	%	 	89.5	%	 	87.4	%	 	87.8	%	 	91.1	%	
Washington, DC	 	93.0	%	 	90.3	%	 	89.3	%	 	88.5	%	 	90.7	%	 	89.2	%	
   Total Portfolio	 	93.4	%	 	93.4	%	 	87.7	%	 	86.9	%	 	91.4	%	 	91.1	%	

SAME PROPERTY OFFICE PROPERTIES 1, 2 - Year-over-Year	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	CBD	 	Suburban	 	Total	
Location	 	31-Dec-18	 	31-Dec-17	 	31-Dec-18	 	31-Dec-17	 	31-Dec-18	 	31-Dec-17	
Boston	 	98.0	%	 	95.3	%	 	91.3	%	 	92.0	%	 	95.8	%	 	94.2	%	
Los Angeles	 	99.3	%	 	85.6	%	 	—	%	 	—	%	 	99.3	%	 	85.6	%	
New York	 	91.8	%	 	89.2	%	 	75.8	%	 	75.5	%	 	88.0	%	 	86.0	%	
San Francisco	 	93.1	%	 	92.8	%	 	89.5	%	 	83.6	%	 	91.9	%	 	89.9	%	
Washington, DC	 	93.0	%	 	90.8	%	 	89.3	%	 	91.9	%	 	90.7	%	 	91.4	%	
   Total Portfolio	 	94.6	%	 	91.9	%	 	87.5	%	 	88.0	%	 	92.0	%	 	90.5	%	

_____________
 	 	
1 	Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Includes 100% of joint venture properties. Does not include residential units and hotel.	
 	 	
2 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	

23

 	 	

	Q4 2018	 	
 	Capital structure	 	

(in thousands, except percentages)

CONSOLIDATED DEBT	
 	 	 	 	
 	Aggregate Principal	
Mortgage Notes Payable	$	2,995,328	
 	
Unsecured Line of Credit	—	
 	
Unsecured Term Loan	500,000	
 	
Unsecured Senior Notes, at face value	7,600,000	
 	
Outstanding Principal	11,095,328	
 	
Discount on Unsecured Senior Notes	(18,722	)	
Deferred Financing Costs, Net	(68,849	)	
Consolidated Debt	$	11,007,757	

MORTGAGE NOTES PAYABLE	
 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Interest Rate	 	 	
Property	 	Maturity Date	 	GAAP	 	Stated	 	Outstanding Principal	
New Dominion Technology Park, Building One	 	January 15, 2021	 	7.84%	 	7.69%	 	$	29,844	
 	
University Place	 	August 1, 2021	 	6.99%	 	6.94%	 	5,605	
 	
601 Lexington Avenue (55% ownership)	 	April 10, 2022	 	4.79%	 	4.75%	 	659,879	
 	
767 Fifth Avenue (The GM Building) (60% ownership)	 	June 9, 2027	 	3.64%	 	3.43%	 	2,300,000	
 	
Total	 	 	 	 	 	 	 	$	2,995,328	

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1 	
 	 	 	 	 	 	 	 	 	 	 	
 	 	Maturity Date	 	Effective Yield (on issue date)	 	Coupon	 	Outstanding Principal	
10 Year Unsecured Senior Notes	 	November 15, 2020	 	5.71%	 	5.63%	 	$	700,000	
 	
10 Year Unsecured Senior Notes	 	May 15, 2021	 	4.29%	 	4.13%	 	850,000	
 	
11 Year Unsecured Senior Notes	 	February 1, 2023	 	3.95%	 	3.85%	 	1,000,000	
 	
10.5 Year Unsecured Senior Notes	 	September 1, 2023	 	3.28%	 	3.13%	 	500,000	
 	
10.5 Year Unsecured Senior Notes	 	February 1, 2024	 	3.92%	 	3.80%	 	700,000	
 	
7 Year Unsecured Senior Notes	 	January 15, 2025	 	3.35%	 	3.20%	 	850,000	
 	
10 Year Unsecured Senior Notes	 	February 1, 2026	 	3.77%	 	3.65%	 	1,000,000	
 	
10 Year Unsecured Senior Notes	 	October 1, 2026	 	3.50%	 	2.75%	 	1,000,000	
 	
10 Year Unsecured Senior Notes ("green bonds")	December 1, 2028	 	4.63%	 	4.50%	 	1,000,000	
 	
 	 	 	 	 	 	 	 	$	7,600,000	

CAPITALIZATION	
 	 	 	 	 	 	 	 	 	 	 	
 	 	Shares/Units	 	Common Stock	 	Equivalent	
 	 	Outstanding	 	Equivalents	 	Value 2	
Common Stock	 	154,458	
 	 	154,458	
 	 	$	17,384,248	
 	
Common Operating Partnership Units	 	17,775	
 	 	17,775	
 	 	2,000,576	
 	
5.25% Series B Cumulative Redeemable Preferred Stock (callable on or after March 27, 2018)	 	80	
 	 	—	
 	 	200,000	
 	
Total Equity	 	 	 	172,233	
 	 	$	19,584,824	

Consolidated Debt (A)	 	 	 	 	 	$	11,007,757	
 	
Add: BXP's share of unconsolidated joint venture debt 3	 	 	 	 	 	890,574	
 	
Less: Partners' share of consolidated debt 4	 	 	 	 	 	1,204,774	
 	
BXP's Share of Debt 5 (B) 	 	 	 	 	 	$	10,693,557	

Consolidated Market Capitalization (C)	 	 	 	 	 	$	30,592,581	
 	
BXP's Share of Market Capitalization 5 (D) 	 	 	 	 	 	$	30,278,381	
 	
Consolidated Debt/Consolidated Market Capitalization (A÷C)	 	 	 	 	 	35.98	%	
BXP's Share of Debt/BXP's Share of Market Capitalization 5 (B÷D)  	 	 	 	 	 	35.32	%	
_____________
 	 	
1 	All unsecured senior notes are rated A- (stable), BBB+ (stable) and Baa1 (stable) by S&P, Fitch and Moody's, respectively.	
 	 	
2 	Values based on December 31, 2018 closing price of $112.55 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.	
 	 	
3 	Amount is calculated based on the Company's percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 32.	
 	 	
4 	Amount is calculated based on the outside partners' percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 30.	
 	 	
5 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	

24

 	 	

	Q4 2018	 	
 	Debt analysis1	 	

as of December 31, 2018 
(dollars in thousands)

UNSECURED CREDIT FACILITY - MATURES APRIL 24, 2022	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Facility	 	Outstanding at December 31, 2018	 	Letters of Credit	 	Remaining Capacity at December 31, 2018	
Unsecured Line of Credit	 	$	1,500,000	
 	 	$	—	
 	 	$	214	
 	 	$	1,499,786	
 	
Unsecured Term Loan	 	$	500,000	
 	 	$	500,000	
 	 	 N/A	
 	 	$	—	

UNSECURED AND SECURED DEBT ANALYSIS	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Weighted Average	
 	 	 % of Total Debt	 	 Stated Rates	 	 GAAP Rates 2	 	 Maturity (years)	
Unsecured Debt	 	73.07	%	 	3.92	%	 	4.00	%	 	5.5	
 	
Secured Debt	 	26.93	%	 	3.77	%	 	3.94	%	 	7.2	
 	
Consolidated Debt	 	100.00	%	 	3.88	%	 	3.99	%	 	6.0	

FLOATING AND FIXED RATE DEBT ANALYSIS	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Weighted Average	
 	 	 % of Total Debt	 	 Stated Rates	 	 GAAP Rates 2	 	 Maturity (years)	
Floating Rate Debt	 	4.53	%	 	3.27	%	 	3.36	%	 	3.3	
 	
Fixed Rate Debt	 	95.47	%	 	3.91	%	 	4.01	%	 	6.1	
 	
Consolidated Debt	 	100.00	%	 	3.88	%	 	3.99	%	 	6.0	

_____________
 	 	
1 	Excludes unconsolidated joint ventures. For information on BXP's share of unconsolidated joint venture debt, see page 32.	
 	 	
2 	The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.	

25

 	 	

	Q4 2018	 	
 	Senior unsecured debt covenant compliance ratios	 	

In the fourth quarter of 2002, the Company's Operating Partnership (Boston Properties Limited Partnership) received investment grade ratings on its senior unsecured debt securities and thereafter issued unsecured notes. The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented from time to time (the "Indenture"), which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the Indenture.
This section presents such ratios as of December 31, 2018 to show that the Company's Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company's financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

 	
 	 	 	 	 	 	 	 	
 	 	 	Senior Notes Issued Prior to December 4, 2017	 	Senior Notes issued On or After December 4, 2017	
 	Test	 	Actual	
Total Outstanding Debt/Total Assets 1	Less than 60%	 	42.3	%	 	39.0	%	
Secured Debt/Total Assets	Less than 50%	 	14.4	%	 	13.3	%	
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	Greater than 1.50x	 	4.10	
 	 	4.10	
 	
Unencumbered Assets/ Unsecured Debt	Greater than 150%	 	263.2	%	 	285.2	%	

_____________
 	 	
1 	Capitalized Property Value for senior notes issued prior to December 4, 2017 is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized property value for senior notes issued on or after December 4, 2017 is determined for each property and is the greater of (a) annualized EBITDA capitalized at 7.0% and (b) the undepreciated book value as determined under GAAP.	

26

 	 	

	Q4 2018	 	
 	Net Debt to EBITDAre	 	

(dollars in thousands)
Reconciliation of BXP's Share of EBITDAre and BXP's Share of EBITDAre – cash 1 	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	148,529	
 	 	$	119,118	
 	
Add:	 	 	 	 	
Preferred dividends	 	2,625	
 	 	2,625	
 	
Noncontrolling interest - common units of the Operating Partnership	 	17,662	
 	 	13,852	
 	
Noncontrolling interest in property partnerships	 	16,425	
 	 	14,850	
 	
Net income	 	185,241	
 	 	150,445	
 	
Add:	 	 	 	 	
Interest expense	 	100,378	
 	 	95,366	
 	
Losses from early extinguishments of debt	 	16,490	
 	 	—	
 	
Depreciation and amortization expense	 	165,439	
 	 	157,996	
 	
Impairment losses	 	11,812	
 	 	—	
 	
Less:	 	 	 	 	
Gains on sales of real estate	 	59,804	
 	 	7,863	
 	
Income (loss) from unconsolidated joint ventures	 	5,305	
 	 	(4,313	)	
Add:	 	 	 	 	
BXP's share of EBITDAre from unconsolidated joint ventures 2	 	25,388	
 	 	23,067	
 	
EBITDAre 1	 	439,639	
 	 	423,324	
 	
Less:	 	 	 	 	
Partners' share of EBITDAre from consolidated joint ventures 3	 	46,393	
 	 	44,060	
 	
BXP's Share of EBITDAre 1 (A)	 	393,246	
 	 	379,264	
 	
Add:	 	 	 	 	
Stock-based compensation expense	 	8,417	
 	 	8,457	
 	
Straight-line ground rent expense adjustment	 	1,055	
 	 	1,062	
 	
BXP's Share of lease transaction costs that qualify as rent inducements 1	 	4,198	
 	 	3,846	
 	
Less:	 	 	 	 	
BXP's Share of non-cash termination income adjustment (fair value lease amounts) 1	 	—	
 	 	—	
 	
BXP's Share of straight-line rent 1	 	5,487	
 	 	4,846	
 	
BXP's Share of fair value lease revenue 1	 	5,119	
 	 	5,007	
 	
BXP's Share of EBITDAre – cash 1	 	$	396,310	
 	 	$	382,776	

BXP's Share of EBITDAre (Annualized) 4 (A x 4)	 	$	1,572,984	
 	 	$	1,517,056	

Reconciliation of BXP's Share of Net Debt 1 	
 	 	 	 	 	 	 	 	 	
 	 	31-Dec-18	 	30-Sep-18	
Consolidated debt	 	$	11,007,757	
 	 	$	10,889,702	
 	
Add:	 	 	 	 	
Special dividend payable	 	—	
 	 	—	
 	
Less:	 	 	 	 	
Cash and cash equivalents	 	543,359	
 	 	322,502	
 	
Cash held in escrow for 1031 exchange	 	44,401	
 	 	56,105	
 	
Net debt 1	 	10,419,997	
 	 	10,511,095	
 	
Add:	 	 	 	 	
BXP's share of unconsolidated joint venture debt 2	 	890,574	
 	 	869,194	
 	
Partners' share of cash and cash equivalents from consolidated joint ventures	 	124,202	
 	 	107,241	
 	
Less:	 	 	 	 	
BXP's share of cash and cash equivalents from unconsolidated joint ventures	 	99,750	
 	 	97,559	
 	
Partners' share of consolidated joint venture debt 3	 	1,204,774	
 	 	1,205,958	
 	
BXP's Share of Net Debt 1 (B)	 	$	10,130,249	
 	 	$	10,184,013	

BXP's Share of Net Debt to BXP's Share of EBITDAre (Annualized) [B ÷ (A x 4)]	 	6.44	
 	 	6.71	
 	
_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	For disclosures related to the calculation of BXP's share from unconsolidated joint ventures for the three months ended December 31, 2018, see pages 32 and 59.	
 	 	
3 	For disclosures related to the calculation of Partners' share from consolidated joint ventures for the three months ended December 31, 2018, see pages 30 and 58.	
 	 	
4 	BXP's Share of EBITDAre is annualized and calculated as the product of such amount for the quarter multiplied by four (4).	

27

 	 	

	Q4 2018	 	
 	Debt ratios	 	

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO1

 	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
BXP's Share of interest expense 1	 	$	100,254	
 	 	$	93,682	
 	
Less:	 	 	 	 	
BXP's Share of hedge amortization 1	 	1,435	
 	 	1,435	
 	
BXP's Share of amortization of financing costs 1	 	2,886	
 	 	2,833	
 	
Adjusted interest expense excluding capitalized interest (A)	 	95,933	
 	 	89,414	
 	
Add:	 	 	 	 	
BXP's Share of capitalized interest 1	 	14,512	
 	 	16,558	
 	
Adjusted interest expense including capitalized interest (B)	 	$	110,445	
 	 	$	105,972	

BXP's Share of EBITDAre – cash 1, 2 (C)	 	$	396,310	
 	 	$	382,776	

Interest Coverage Ratio (excluding capitalized interest) (C÷A)	 	4.13	
 	 	4.28	
 	
Interest Coverage Ratio (including capitalized interest) (C÷B)	 	3.59	
 	 	3.61	

FIXED CHARGE COVERAGE RATIO 1 

 	
 	 	 	 	 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-18	 	30-Sep-18	
BXP's Share of interest expense 1	 	$	100,254	
 	 	$	93,682	
 	
Less:	 	 	 	 	
BXP's Share of hedge amortization 1	 	1,435	
 	 	1,435	
 	
BXP's Share of amortization of financing costs 1	 	2,886	
 	 	2,833	
 	
Add:	 	 	 	 	
BXP's Share of capitalized interest 1	 	14,512	
 	 	16,558	
 	
BXP's Share of maintenance capital expenditures 1	 	16,787	
 	 	25,222	
 	
Hotel improvements, equipment upgrades and replacements	 	272	
 	 	211	
 	
Preferred dividends/distributions	 	2,625	
 	 	2,625	
 	
Total Fixed Charges (A)	 	$	130,129	
 	 	$	134,030	

BXP's Share of EBITDAre – cash 1, 2 (B)	 	$	396,310	
 	 	$	382,776	
 	
Fixed Charge Coverage Ratio (B÷A)	 	3.05	
 	 	2.86	

_____________
 	 	
1 	See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.	
 	 	
2 	For a qualitative reconciliation of BXP's Share of EBITDAre – cash, see page 28.	

28

 	 	

	Q4 2018	 	
 	Consolidated joint ventures	 	

as of December 31, 2018 
(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Norges Joint Ventures 1	 	 	 	 	 	
 	 	 	 	Times Square Tower	 	 	 	 	 	
 	 	 	601 Lexington Avenue /
One Five Nine East 53rd Street	 	 	 	 	
 	 	767 Fifth Avenue	 	100 Federal Street	 	 	 	Total Consolidated	 	
ASSETS	 	(The GM Building) 1	 	Atlantic Wharf Office	 	Salesforce Tower 1, 2	 	Joint Ventures	 	
 	 	 	 	 	 	 	 	 	 	
Real estate, net	 	$	3,247,030	
 	 	$	2,188,324	
 	 	$	1,110,520	
 	 	$	6,545,874	
 	 	
Cash and cash equivalents	 	123,928	
 	 	164,967	
 	 	7,912	
 	 	296,807	
 	 	
Other assets	 	280,920	
 	 	330,033	
 	 	38,493	
 	 	649,446	
 	 	
Total assets	 	$	3,651,878	
 	 	$	2,683,324	
 	 	$	1,156,925	
 	 	$	7,492,127	

 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	 	 	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	 	 	
Mortgage notes payable, net	 	$	2,270,485	
 	 	$	658,792	
 	 	$	—	
 	 	$	2,929,277	
 	 	
Other liabilities	 	142,335	
 	 	85,779	
 	 	58,634	
 	 	286,748	
 	 	
Total liabilities	 	2,412,820	
 	 	744,571	
 	 	58,634	
 	 	3,216,025	
 	 	
Equity:	 	 	 	 	 	 	 	 	 	
   Boston Properties, Inc.	 	744,844	
 	 	745,811	
 	 	1,073,902	
 	 	2,564,557	
 	 	
   Noncontrolling interests	 	494,214	
 	 	1,192,942	
 	 	24,389	
 	 	1,711,545	
 	3 	
Total equity	 	1,239,058	
 	 	1,938,753	
 	 	1,098,291	
 	 	4,276,102	
 	 	
Total liabilities and equity	 	$	3,651,878	
 	 	$	2,683,324	
 	 	$	1,156,925	
 	 	$	7,492,127	

BXP's nominal ownership percentage	 	60%	 	55%	 	95%	 	

 	 	 	 	 	 	 	 	

Partners' share of cash and cash equivalents  4	 	$	49,571	
 	
 	$	74,235	
 	
 	$	396	
 	 	$	124,202	

Partners' share of consolidated debt 4, 5	 	$	908,318	
 	 	$	296,456	
 	 	$	—	
 	 	$	1,204,774	

_____________
 	 	
1 	Certain balances contain amounts that eliminate in consolidation.	
 	 	
2 	On January 18, 2019, the joint venture agreement was amended and the partner exercised its right to cause the Company to purchase on April 1, 2019 its 5% ownership interest and promoted interest in the venture.	
 	 	
3 	Amount excludes preferred shareholders' capital of approximately $0.1 million.	
 	 	
4 	Amounts represent the partners' share based on their respective ownership percentage.	
 	 	
5 	Amounts adjusted for basis differentials.	

29

 	 	

	Q4 2018	 	
 	Consolidated joint ventures (continued)	 	

for the three months ended December 31, 2018 
(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Norges Joint Ventures	 	 	 	 	
 	 	 	 	Times Square Tower	 	 	 	 	
 	 	 	601 Lexington Avenue /
One Five Nine East 53rd Street	 	 	 	
 	 	767 Fifth Avenue	 	100 Federal Street	 	 	 	Total Consolidated	
 	 	(The GM Building)	 	Atlantic Wharf Office	 	Salesforce Tower	 	Joint Ventures	
Revenue	 	 	 	 	 	 	 	 	
Rent	 	$	57,262	
 	 	$	76,239	
 	 	$	20,035	
 	 	$	153,536	
 	
Straight-line rent	 	(1,502	)	 	2,279	
 	 	(6,689	)	 	(5,912	)	
Fair value lease revenue	 	4,509	
 	 	252	
 	 	—	
 	 	4,761	
 	
Termination income	 	275	
 	 	11	
 	 	—	
 	 	286	
 	
Base Rent	 	60,544	
 	
 	78,781	
 	
 	13,346	
 	
 	152,671	
 	
Recoveries from tenants	 	12,946	
 	 	16,829	
 	 	6,860	
 	 	36,635	
 	
Parking and other	 	732	
 	 	1,632	
 	 	345	
 	 	2,709	
 	
Total rental revenue	 	74,222	
 	
 	97,242	
 	
 	20,551	
 	
 	192,015	
 	
Expenses	 	 	 	 	 	 	 	 	
Operating	 	28,867	
 	 	33,885	
 	 	8,973	
 	 	71,725	
 	
Net Operating Income (NOI)	 	45,355	
 	 	63,357	
 	 	11,578	
 	 	120,290	

Other income (expense)	 	 	 	 	 	 	 	 	
Development and management services revenue	 	525	
 	 	807	
 	 	27	
 	 	1,359	
 	
Interest and other income	 	635	
 	 	570	
 	 	152	
 	 	1,357	
 	
Interest expense	 	(20,533	)	 	(5,970	)	 	—	
 	 	(26,503	)	
Depreciation and amortization expense	 	(23,141	)	 	(21,309	)	 	(5,757	)	 	(50,207	)	
Total other income (expense)	 	(42,514	)	 	(25,902	)	 	(5,578	)	 	(73,994	)	
Net income	 	$	2,841	
 	 	$	37,455	
 	 	$	6,000	
 	 	$	46,296	

FUNDS FROM OPERATIONS (FFO)

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's nominal ownership percentage	 	60%	 	55%	 	95%	 	 	
 	 	 	 	 	 	 	 	 	
 	 	 	 	Norges Joint Ventures	 	 	 	 	
 	 	 	 	Times Square Tower	 	 	 	 	
 	 	 	601 Lexington Avenue /
One Five Nine East 53rd Street	 	 	 	
 	 	767 Fifth Avenue	 	100 Federal Street	 	 	 	Total Consolidated	
Reconciliation of Partners' share of FFO	 	(The GM Building)	 	Atlantic Wharf Office	 	Salesforce Tower	 	Joint Ventures	
Net income	 	$	2,841	
 	 	$	37,455	
 	 	$	6,000	
 	 	$	46,296	
 	
Add: Depreciation and amortization expense	 	23,141	
 	 	21,309	
 	 	5,757	
 	 	50,207	
 	
Entity FFO	 	$	25,982	
 	 	$	58,764	
 	 	$	11,757	
 	 	$	96,503	

Partners' NCI 1	 	$	443	
 	 	$	16,017	
 	 	$	(35	)	 	$	16,425	
 	
Partners' share of depreciation and amortization expense after BXP's basis differential  1	 	9,240	
 	 	9,567	
 	 	260	
 	 	19,067	
 	
Partners' share FFO 1	 	$	9,683	
 	 	$	25,584	
 	 	$	225	
 	 	$	35,492	

Reconciliation of BXP's share of FFO	 	 	 	 	 	 	 	 	
BXP's share of net income adjusted for partners' NCI	 	$	2,398	
 	 	$	21,438	
 	 	$	6,035	
 	 	$	29,871	
 	
Depreciation and amortization expense - BXP's basis difference	 	40	
 	 	49	
 	 	553	
 	 	642	
 	
BXP's share of depreciation and amortization expense	 	13,861	
 	 	11,693	
 	 	4,944	
 	 	30,498	
 	
BXP's share of FFO	 	$	16,299	
 	 	$	33,180	
 	 	$	11,532	
 	 	$	61,011	

_____________
 	 	
1 	Amounts represent the partners' share based on their respective ownership percentage and is adjusted for basis differentials and the allocations of management and other fees and interest to BXP.  	

30

 	 	

	Q4 2018	 	
 	Unconsolidated joint ventures1	 	

as of December 31, 2018 
(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	BXP's Nominal Ownership	 	 	 	Mortgage/Construction Loans Payable, Net	 	 	 	Interest Rate	 	
Property	 	 	 	 Net Equity	 	 	 	Maturity Date	 	Stated	 	GAAP 2	 	 	 	 	 	
540 Madison Avenue	 	60.00	%	 	$	66,391	
 	 	$	71,646	
 	 	June 5, 2023	
 	 	3.40	%	 	3.51	%	 	 	 	 	 	
Santa Monica Business Park	 	55.00	%	 	180,952	
 	 	163,110	
 	 	July 19, 2025	
 	 	4.06	%	 	4.24	%	 	 	 	 	 	
Colorado Center	 	50.00	%	 	253,495	
 	 	274,557	
 	 	August 9, 2027	
 	 	3.56	%	 	3.58	%	 	 	 	 	 	
Dock 72	 	50.00	%	 	82,520	
 	 	61,954	
 	 	December 18, 2020	
 	 	4.61	%	 	5.76	%	 	 	 	 	 	
The Hub on Causeway	 	50.00	%	 	—	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
Podium	 	50.00	%	 	69,302	
 	 	57,723	
 	 	September 6, 2021	
 	 	4.60	%	 	5.08	%	 	 	 	 	 	
Residential	 	50.00	%	 	47,505	
 	 	19,385	
 	 	April 19, 2022	
 	 	4.42	%	 	4.70	%	 	 	 	 	 	
100 Causeway Street	 	50.00	%	 	23,804	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
Hotel Air Rights	 	50.00	%	 	3,022	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
1001 6th Street	 	50.00	%	 	42,557	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
7750 Wisconsin Avenue (Marriott International Headquarters)	 	50.00	%	 	69,724	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
Annapolis Junction	 	50.00	%	 	25,268	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
Annapolis Junction Building Six  3	 	50.00	%	 	—	
 	 	6,518	
 	 	November 17, 2019	
 	 	4.47	%	 	4.78	%	 	 	 	 	 	
Annapolis Junction Building Seven and Eight	 	50.00	%	 	—	
 	 	17,676	
 	 	December 7, 2019	
 	 	4.65	%	 	4.93	%	 	 	 	 	 	
1265 Main Street	 	50.00	%	 	3,918	
 	 	19,297	
 	 	January 1, 2032	
 	 	3.77	%	 	3.84	%	 	 	 	 	 	
Market Square North	 	50.00	%	 	(6,424	)	 	59,282	
 	 	October 1, 2020	
 	 	4.85	%	 	4.91	%	 	 	 	 	 	
Wisconsin Place Parking Facility	 	33.33	%	 	38,214	
 	 	—	
 	 	—	
 	 	—	%	 	—	%	 	 	 	 	 	
500 North Capitol Street, N.W.	 	30.00	%	 	(5,026	)	 	31,422	
 	 	June 6, 2023	
 	 	4.15	%	 	4.20	%	 	 	 	 	 	
3 Hudson Boulevard 4	 	25.00	%	 	46,993	
 	 	19,928	
 	 	July 13, 2023	
 	 	5.83	%	 	5.91	%	 	 	 	 	 	
901 New York Avenue	 	25.00	%	 	(13,640	)	 	55,982	
 	 	January 5, 2025	
 	 	3.61	%	 	3.69	%	 	 	 	 	 	
Metropolitan Square	 	20.00	%	 	2,644	
 	 	32,094	
 	 	May 5, 2020	
 	 	5.75	%	 	5.81	%	 	 	 	 	 	
 	 	 	 	931,219	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investments with deficit balances reflected within Other Liabilities	 	 	 	25,090	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Investment in Joint Ventures	 	 	 	$	956,309	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage/Construction Loans Payable, Net	 	 	
 	
 	 	$	890,574	

FLOATING AND FIXED RATE DEBT ANALYSIS	
 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	Weighted Average	
 	 	 % of Total Debt	 	Stated Rate	 	GAAP Rate 2	 	Maturity (years)	
Floating Rate Debt	 	28.61	%	 	4.35	%	 	4.82	%	 	3.0	
 	
Fixed Rate Debt	 	71.39	%	 	3.96	%	 	4.03	%	 	6.8	
 	
Total Debt	 	100.00	%	 	4.07	%	 	4.26	%	 	5.7	

31

 	 	

	Q4 2018	 	
 	Unconsolidated joint ventures (continued)1	 	

_____________
 	 	
1 	Amounts represent BXP's share based on its ownership percentage.	
 	 	
2 	The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees .	
 	 	
3 	On January 24, 2019, the joint venture extended the loan maturity to November 17, 2020.	
 	 	
4 	The Company has provided $80.0 million of mortgage financing to the joint venture. The loan has been reflected as Related Party Note Receivable on the Company's Consolidated Balance Sheets.	

32

 	 	

	Q4 2018	 	
 	Unconsolidated joint ventures (continued)	 	

for the three months ended December 31, 2018 
(unaudited and dollars in thousands)
RESULTS OF OPERATIONS	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	540 Madison Avenue	 	Market Square North	 	Metropolitan
Square	 	901 New York Avenue	 	Annapolis Junction  1	 	500 North Capitol Street, N.W.	 	Colorado Center	 	Santa Monica Business Park	 	Other Joint Ventures  2	 	Total Unconsolidated Joint Ventures	
Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rent	 	$	5,353	
 	 	$	4,168	
 	 	$	5,793	
 	 	$	7,017	
 	 	$	2,797	
 	 	$	2,923	
 	 	$	14,894	
 	 	$	12,845	
 	 	$	1,086	
 	 	$	56,876	
 	
Straight-line rent	 	220	
 	 	469	
 	 	16	
 	 	211	
 	 	50	
 	 	(56	)	 	2,865	
 	 	1,830	
 	 	574	
 	 	6,179	
 	
Fair value lease revenue	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	96	
 	 	912	
 	 	—	
 	 	1,008	
 	
Termination income	 	3	
 	 	—	
 	 	—	
 	 	50	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	53	
 	
Base rent	 	5,576	
 	 	4,637	
 	 	5,809	
 	 	7,278	
 	 	2,847	
 	 	2,867	
 	 	17,855	
 	 	15,587	
 	 	1,660	
 	 	64,116	
 	
Recoveries from tenants	 	534	
 	 	986	
 	 	1,245	
 	 	1,271	
 	 	523	
 	 	1,519	
 	 	592	
 	 	2,089	
 	 	701	
 	 	9,460	
 	
Parking and other	 	39	
 	 	191	
 	 	709	
 	 	445	
 	 	55	
 	 	127	
 	 	3,001	
 	 	1,791	
 	 	1,113	
 	 	7,471	
 	
Total rental revenue	 	6,149	
 	 	5,814	
 	 	7,763	
 	 	8,994	
 	 	3,425	
 	 	4,513	
 	 	21,448	
 	 	19,467	
 	 	3,474	
 	 	81,047	
 	
Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	 	3,606	
 	 	2,520	
 	 	3,874	
 	 	3,573	
 	 	1,684	
 	 	1,802	
 	 	5,423	
 	 	7,521	
 	 	1,377	
 	 	31,380	
 	
Net operating income/(loss)	 	2,543	
 	 	3,294	
 	 	3,889	
 	 	5,421	
 	 	1,741	
 	 	2,711	
 	 	16,025	
 	 	11,946	
 	 	2,097	
 	 	49,667	

Other income/(expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Development and management services revenue	 	107	
 	 	2	
 	 	1	
 	 	—	
 	 	—	
 	 	—	
 	 	6	
 	 	8	
 	 	2	
 	 	126	
 	
Interest and other income	 	82	
 	 	81	
 	 	2	
 	 	125	
 	 	95	
 	 	18	
 	 	190	
 	 	—	
 	 	428	
 	 	1,021	
 	
Interest expense	 	(1,099	)	 	(1,463	)	 	(2,155	)	 	(2,075	)	 	(1,399	)	 	(1,128	)	 	(5,033	)	 	(7,589	)	 	(375	)	 	(22,316	)	
Depreciation and amortization expense	 	(1,962	)	 	(1,061	)	 	(5,827	)	 	(1,523	)	 	(1,011	)	 	(944	)	 	(4,924	)	 	(9,807	)	 	(1,774	)	 	(28,833	)	
Gain on distribution of real estate	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	16,959	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	16,959	
 	
Subtotal	 	(2,872	)	 	(2,441	)	 	(7,979	)	 	(3,473	)	 	14,644	
 	 	(2,054	)	 	(9,761	)	 	(17,388	)	 	(1,719	)	 	(33,043	)	
Net income/(loss)	 	$	(329	)	 	$	853	
 	 	$	(4,090	)	 	$	1,948	
 	 	$	16,385	
 	 	$	657	
 	 	$	6,264	
 	 	$	(5,442	)	 	$	378	
 	 	$	16,624	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's nominal ownership percentage	 	60	%	 	50	%	 	20	%	 	25	%	 	50	%	 	30	%	 	50	%	 	55	%	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of BXP's share of Funds from Operations (FFO)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of net income/(loss)	 	$	(197	)	 	$	427	
 	 	$	(818	)	 	$	524	
 	3 	$	8,193	
 	 	$	197	
 	 	$	3,132	
 	 	$	(2,993	)	 	$	272	
 	 	$	8,737	
 	
Basis differential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight-line rent	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	537	
 	4 	$	—	
 	 	$	—	
 	 	$	537	
 	
Fair value lease revenue	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	410	
 	4 	—	
 	 	—	
 	 	410	
 	
Depreciation and amortization expense	 	164	
 	 	(45	)	 	(53	)	 	(1,748	)	 	(37	)	 	—	
 	 	(2,435	)	4 	—	
 	 	(16	)	 	(4,170	)	
Gain on distribution of real estate	 	—	
 	 	—	
 	
 	—	
 	 	—	
 	 	(209	)	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	(209	)	
Total basis differential 5	 	164	
 	 	(45	)	 	(53	)	 	(1,748	)	 	(246	)	 	—	
 	 	(1,488	)	4 	—	
 	 	(16	)	 	(3,432	)	
Income/(loss) from unconsolidated joint ventures	 	(33	)	 	382	
 	 	(871	)	 	(1,224	)	3 	7,947	
 	 	197	
 	 	1,644	
 	 	(2,993	)	 	256	
 	 	5,305	
 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of depreciation and amortization expense	 	1,013	
 	 	576	
 	 	1,218	
 	 	2,979	
 	3 	541	
 	 	283	
 	 	4,897	
 	 	5,394	
 	 	675	
 	 	17,576	
 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of gain on distribution of real estate	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	8,270	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	8,270	
 	
BXP's share of FFO	 	$	980	
 	 	$	958	
 	 	$	347	
 	 	$	1,755	
 	 	$	218	
 	 	$	480	
 	 	$	6,541	
 	 	$	2,401	
 	 	$	931	
 	 	$	14,611	

33

 	 	

	Q4 2018	 	
 	Unconsolidated joint ventures (continued)	 	

_____________
 	 	
1 	Annapolis Junction includes four in-service properties and two undeveloped land parcels. On December 31, 2018 the Company and its partner in the joint venture entered into a distribution agreement whereby the joint venture distributed one of the four in-service properties to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. Mortgage indebtedness at the time of the distribution totaled $45.4 million including accrued interest. The gain on distribution of real estate is included within income from unconsolidated joint ventures in the Company's consolidated statements of operations.   	
 	 	
2 	Includes The Hub on Causeway, 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility and 3 Hudson Boulevard.	
 	 	
3 	Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.  	
 	 	
4 	The Company's purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this venture.  	
 	 	
5 	Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.	

34

 	 	

	Q4 2018	 	
 	Lease expirations - All in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	Percentage of	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	Total Square Feet	 	 	 	 	 	 	
2018	 	68,474	
 	 	4,078,636	
 	 	59.56	
 	 	4,078,636	
 	 	59.56	
 	 	0.16	%	4 	 	 	 	 	 	
2019	 	2,465,204	
 	 	129,763,768	
 	 	52.64	
 	 	130,087,935	
 	 	52.77	
 	 	5.81	%	 	 	 	 	 	 	
2020	 	3,721,044	
 	 	220,444,832	
 	 	59.24	
 	 	228,517,571	
 	 	61.41	
 	 	8.76	%	 	 	 	 	 	 	
2021	 	3,408,909	
 	 	190,887,971	
 	 	56.00	
 	 	198,850,837	
 	 	58.33	
 	 	8.03	%	 	 	 	 	 	 	
2022	 	3,835,318	
 	 	242,533,823	
 	 	63.24	
 	 	250,158,014	
 	 	65.22	
 	 	9.03	%	 	 	 	 	 	 	
2023	 	2,031,888	
 	 	122,808,230	
 	 	60.44	
 	 	133,628,741	
 	 	65.77	
 	 	4.79	%	 	 	 	 	 	 	
2024	 	3,494,035	
 	 	208,455,465	
 	 	59.66	
 	 	226,591,632	
 	 	64.85	
 	 	8.23	%	 	 	 	 	 	 	
2025	 	2,677,229	
 	 	162,761,137	
 	 	60.79	
 	 	182,038,916	
 	 	68.00	
 	 	6.31	%	 	 	 	 	 	 	
2026	 	3,104,442	
 	 	226,248,709	
 	 	72.88	
 	 	254,207,240	
 	 	81.89	
 	 	7.31	%	 	 	 	 	 	 	
2027	 	1,753,053	
 	 	113,900,326	
 	 	64.97	
 	 	132,084,888	
 	 	75.35	
 	 	4.13	%	 	 	 	 	 	 	
Thereafter	 	11,953,611	
 	 	863,546,453	
 	 	72.24	
 	 	1,110,443,078	
 	 	92.90	
 	 	28.15	%	 	 	 	 	 	 	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	Percentage of	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	Total Square Feet	 	 	 	 	 	 	
2018	 	17,485	
 	 	10,066,126	
 	 	575.70	
 	 	10,066,126	
 	 	575.70	
 	 	0.72	%	4 	 	 	 	 	 	
2019	 	127,503	
 	 	7,496,038	
 	 	58.79	
 	 	8,222,849	
 	 	64.49	
 	 	5.26	%	 	 	 	 	 	 	
2020	 	225,850	
 	 	14,132,477	
 	 	62.57	
 	 	14,191,325	
 	 	62.84	
 	 	9.32	%	 	 	 	 	 	 	
2021	 	133,623	
 	 	21,703,503	
 	 	162.42	
 	 	21,878,798	
 	 	163.74	
 	 	5.51	%	 	 	 	 	 	 	
2022	 	231,303	
 	 	18,674,759	
 	 	80.74	
 	 	19,113,102	
 	 	82.63	
 	 	9.54	%	 	 	 	 	 	 	
2023	 	223,862	
 	 	18,261,928	
 	 	81.58	
 	 	19,348,430	
 	 	86.43	
 	 	9.23	%	 	 	 	 	 	 	
2024	 	123,118	
 	 	11,240,085	
 	 	91.30	
 	 	12,665,292	
 	 	102.87	
 	 	5.08	%	 	 	 	 	 	 	
2025	 	127,161	
 	 	8,521,485	
 	 	67.01	
 	 	9,344,821	
 	 	73.49	
 	 	5.25	%	 	 	 	 	 	 	
2026	 	117,154	
 	 	15,060,913	
 	 	128.56	
 	 	16,765,458	
 	 	143.11	
 	 	4.83	%	 	 	 	 	 	 	
2027	 	108,867	
 	 	13,525,236	
 	 	124.24	
 	 	15,408,816	
 	 	141.54	
 	 	4.49	%	 	 	 	 	 	 	
Thereafter	 	772,306	
 	 	79,759,682	
 	 	103.27	
 	 	110,678,630	
 	 	143.31	
 	 	31.86	%	 	 	 	 	 	 	

IN-SERVICE PROPERTIES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	Percentage of	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	Total Square Feet	 	 	 	 	 	 	
2018	 	85,959	
 	 	14,144,762	
 	 	164.55	
 	 	14,144,762	
 	 	164.55	
 	 	0.19	%	4 	 	 	 	 	 	
2019	 	2,592,707	
 	 	137,259,806	
 	 	52.94	
 	 	138,310,784	
 	 	53.35	
 	 	5.78	%	 	 	 	 	 	 	
2020	 	3,946,894	
 	 	234,577,309	
 	 	59.43	
 	 	242,708,896	
 	 	61.49	
 	 	8.79	%	 	 	 	 	 	 	
2021	 	3,542,532	
 	 	212,591,474	
 	 	60.01	
 	 	220,729,635	
 	 	62.31	
 	 	7.89	%	 	 	 	 	 	 	
2022	 	4,066,621	
 	 	261,208,582	
 	 	64.23	
 	 	269,271,116	
 	 	66.21	
 	 	9.06	%	 	 	 	 	 	 	
2023	 	2,255,750	
 	 	141,070,158	
 	 	62.54	
 	 	152,977,171	
 	 	67.82	
 	 	5.03	%	 	 	 	 	 	 	
2024	 	3,617,153	
 	 	219,695,550	
 	 	60.74	
 	 	239,256,924	
 	 	66.15	
 	 	8.06	%	 	 	 	 	 	 	
2025	 	2,804,390	
 	 	171,282,622	
 	 	61.08	
 	 	191,383,737	
 	 	68.24	
 	 	6.25	%	 	 	 	 	 	 	
2026	 	3,221,596	
 	 	241,309,622	
 	 	74.90	
 	 	270,972,698	
 	 	84.11	
 	 	7.18	%	 	 	 	 	 	 	
2027	 	1,861,920	
 	 	127,425,562	
 	 	68.44	
 	 	147,493,704	
 	 	79.22	
 	 	4.15	%	 	 	 	 	 	 	
Thereafter	 	12,725,917	
 	 	943,306,135	
 	 	74.12	
 	 	1,221,121,708	
 	 	95.96	
 	 	28.35	%	 	 	 	 	 	 	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel. 	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.  	
 	 	
4 	Includes square feet expiring on the last day of the current quarter. 	

35

 	 	

	Q4 2018	 	
 	Lease expirations - Boston region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	38,103	
 	 	2,019,197	
 	 	52.99	
 	 	2,019,197	
 	 	52.99	
 	4 	 	 	
2019	 	415,086	
 	 	18,552,786	
 	 	44.70	
 	 	18,732,175	
 	 	45.13	
 	 	 	 	
2020	 	488,211	
 	 	26,566,146	
 	 	54.42	
 	 	27,391,638	
 	 	56.11	
 	 	 	 	
2021	 	859,925	
 	 	41,156,926	
 	 	47.86	
 	 	41,359,896	
 	 	48.10	
 	 	 	 	
2022	 	1,493,891	
 	 	78,782,481	
 	 	52.74	
 	 	80,081,022	
 	 	53.61	
 	 	 	 	
2023	 	775,737	
 	 	43,177,000	
 	 	55.66	
 	 	46,455,739	
 	 	59.89	
 	 	 	 	
2024	 	972,108	
 	 	48,065,450	
 	 	49.44	
 	 	52,681,507	
 	 	54.19	
 	 	 	 	
2025	 	1,268,799	
 	 	76,472,206	
 	 	60.27	
 	 	83,699,461	
 	 	65.97	
 	 	 	 	
2026	 	1,193,919	
 	 	80,484,725	
 	 	67.41	
 	 	90,089,284	
 	 	75.46	
 	 	 	 	
2027	 	593,259	
 	 	30,655,451	
 	 	51.67	
 	 	35,229,106	
 	 	59.38	
 	 	 	 	
Thereafter	 	4,045,703	
 	 	230,796,294	
 	 	57.05	
 	 	272,366,803	
 	 	67.32	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	1	
 	 	60,000	
 	 	60,000.00	
 	 	60,000	
 	 	60,000.00	
 	4 	 	 	
2019	 	55,677	
 	 	3,554,016	
 	 	63.83	
 	 	3,554,901	
 	 	63.85	
 	 	 	 	
2020	 	89,666	
 	 	5,336,143	
 	 	59.51	
 	 	5,364,220	
 	 	59.82	
 	 	 	 	
2021	 	30,209	
 	 	2,633,212	
 	 	87.17	
 	 	2,668,168	
 	 	88.32	
 	 	 	 	
2022	 	71,989	
 	 	5,512,709	
 	 	76.58	
 	 	5,557,773	
 	 	77.20	
 	 	 	 	
2023	 	80,258	
 	 	7,760,648	
 	 	96.70	
 	 	8,142,176	
 	 	101.45	
 	 	 	 	
2024	 	72,427	
 	 	4,545,338	
 	 	62.76	
 	 	4,980,734	
 	 	68.77	
 	 	 	 	
2025	 	25,246	
 	 	3,355,671	
 	 	132.92	
 	 	3,666,339	
 	 	145.22	
 	 	 	 	
2026	 	18,912	
 	 	5,107,103	
 	 	270.05	
 	 	5,845,757	
 	 	309.10	
 	 	 	 	
2027	 	64,268	
 	 	10,396,223	
 	 	161.76	
 	 	11,757,911	
 	 	182.95	
 	 	 	 	
Thereafter	 	360,942	
 	 	18,286,203	
 	 	50.66	
 	 	20,884,440	
 	 	57.86	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	38,104	
 	 	2,079,197	
 	 	54.57	
 	 	2,079,197	
 	 	54.57	
 	4 	 	 	
2019	 	470,763	
 	 	22,106,802	
 	 	46.96	
 	 	22,287,076	
 	 	47.34	
 	 	 	 	
2020	 	577,877	
 	 	31,902,289	
 	 	55.21	
 	 	32,755,858	
 	 	56.68	
 	 	 	 	
2021	 	890,134	
 	 	43,790,138	
 	 	49.19	
 	 	44,028,064	
 	 	49.46	
 	 	 	 	
2022	 	1,565,880	
 	 	84,295,190	
 	 	53.83	
 	 	85,638,795	
 	 	54.69	
 	 	 	 	
2023	 	855,995	
 	 	50,937,648	
 	 	59.51	
 	 	54,597,915	
 	 	63.78	
 	 	 	 	
2024	 	1,044,535	
 	 	52,610,788	
 	 	50.37	
 	 	57,662,241	
 	 	55.20	
 	 	 	 	
2025	 	1,294,045	
 	 	79,827,877	
 	 	61.69	
 	 	87,365,800	
 	 	67.51	
 	 	 	 	
2026	 	1,212,831	
 	 	85,591,828	
 	 	70.57	
 	 	95,935,041	
 	 	79.10	
 	 	 	 	
2027	 	657,527	
 	 	41,051,674	
 	 	62.43	
 	 	46,987,017	
 	 	71.46	
 	 	 	 	
Thereafter	 	4,406,645	
 	 	249,082,497	
 	 	56.52	
 	 	293,251,243	
 	 	66.55	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

36

 	 	

	Q4 2018	 	
 	Quarterly lease expirations - Boston region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	38,103	
 	 	2,019,197	
 	 	52.99	
 	 	2,019,197	
 	 	52.99	
 	4 	 	 	
Total 2018	 	38,103	
 	 	2,019,197	
 	 	52.99	
 	 	2,019,197	
 	 	52.99	

Q1 2019	 	85,667	
 	 	3,492,798	
 	 	40.77	
 	 	3,545,371	
 	 	41.39	
 	 	 	 	
Q2 2019	 	48,526	
 	 	1,856,102	
 	 	38.25	
 	 	1,904,102	
 	 	39.24	
 	 	 	 	
Q3 2019	 	199,781	
 	 	8,865,749	
 	 	44.38	
 	 	8,930,991	
 	 	44.70	
 	 	 	 	
Q4 2019	 	81,112	
 	 	4,338,137	
 	 	53.48	
 	 	4,351,711	
 	 	53.65	
 	 	 	 	
Total 2019	 	415,086	
 	 	18,552,786	
 	 	44.70	
 	 	18,732,175	
 	 	45.13	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	1	
 	 	60,000	
 	 	60,000.00	
 	 	60,000	
 	 	60,000.00	
 	4 	 	 	
Total 2018	 	1	
 	 	60,000	
 	 	60,000.00	
 	 	60,000	
 	 	60,000.00	

Q1 2019	 	47,020	
 	 	2,310,186	
 	 	49.13	
 	 	2,311,071	
 	 	49.15	
 	 	 	 	
Q2 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2019	 	4,150	
 	 	687,790	
 	 	165.73	
 	 	687,790	
 	 	165.73	
 	 	 	 	
Q4 2019	 	4,507	
 	 	556,040	
 	 	123.37	
 	 	556,040	
 	 	123.37	
 	 	 	 	
Total 2019	 	55,677	
 	 	3,554,016	
 	 	63.83	
 	 	3,554,901	
 	 	63.85	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	38,104	
 	 	2,079,197	
 	 	54.57	
 	 	2,079,197	
 	 	54.57	
 	4 	 	 	
Total 2018	 	38,104	
 	 	2,079,197	
 	 	54.57	
 	 	2,079,197	
 	 	54.57	

Q1 2019	 	132,687	
 	 	5,802,984	
 	 	43.73	
 	 	5,856,442	
 	 	44.14	
 	 	 	 	
Q2 2019	 	48,526	
 	 	1,856,102	
 	 	38.25	
 	 	1,904,102	
 	 	39.24	
 	 	 	 	
Q3 2019	 	203,931	
 	 	9,553,539	
 	 	46.85	
 	 	9,618,781	
 	 	47.17	
 	 	 	 	
Q4 2019	 	85,619	
 	 	4,894,178	
 	 	57.16	
 	 	4,907,752	
 	 	57.32	
 	 	 	 	
Total 2019	 	470,763	
 	 	22,106,802	
 	 	46.96	
 	 	22,287,076	
 	 	47.34	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

37

 	 	

	Q4 2018	 	
 	Lease expirations - Los Angeles region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	
 	4 	 	 	
2019	 	41,919	
 	 	2,131,802	
 	 	50.86	
 	 	2,180,918	
 	 	52.03	
 	 	 	 	
2020	 	416,669	
 	 	20,344,536	
 	 	48.83	
 	 	25,248,332	
 	 	60.60	
 	 	 	 	
2021	 	350,514	
 	 	21,788,256	
 	 	62.16	
 	 	23,858,726	
 	 	68.07	
 	 	 	 	
2022	 	43,921	
 	 	2,441,177	
 	 	55.58	
 	 	2,769,132	
 	 	63.05	
 	 	 	 	
2023	 	141,388	
 	 	7,968,739	
 	 	56.36	
 	 	9,244,474	
 	 	65.38	
 	 	 	 	
2024	 	111,182	
 	 	5,833,509	
 	 	52.47	
 	 	6,855,679	
 	 	61.66	
 	 	 	 	
2025	 	186,894	
 	 	9,791,276	
 	 	52.39	
 	 	11,992,434	
 	 	64.17	
 	 	 	 	
2026	 	430,043	
 	 	24,568,694	
 	 	57.13	
 	 	31,182,288	
 	 	72.51	
 	 	 	 	
2027	 	13,937	
 	 	590,940	
 	 	42.40	
 	 	712,192	
 	 	51.10	
 	 	 	 	
Thereafter	 	354,904	
 	 	24,501,134	
 	 	69.04	
 	 	34,860,902	
 	 	98.23	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2019	 	2,000	
 	 	11,808	
 	 	5.90	
 	 	11,808	
 	 	5.90	
 	 	 	 	
2020	 	22,865	
 	 	1,283,126	
 	 	56.12	
 	 	1,313,187	
 	 	57.43	
 	 	 	 	
2021	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2022	 	39,888	
 	 	1,636,180	
 	 	41.02	
 	 	1,806,935	
 	 	45.30	
 	 	 	 	
2023	 	1,405	
 	 	84,729	
 	 	60.31	
 	 	92,667	
 	 	65.96	
 	 	 	 	
2024	 	2,333	
 	 	187,573	
 	 	80.40	
 	 	228,211	
 	 	97.82	
 	 	 	 	
2025	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2026	 	5,827	
 	 	398,042	
 	 	68.31	
 	 	506,421	
 	 	86.91	
 	 	 	 	
2027	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Thereafter	 	17,993	
 	 	593,769	
 	 	33.00	
 	 	898,211	
 	 	49.92	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	
 	4 	 	 	
2019	 	43,919	
 	 	2,143,610	
 	 	48.81	
 	 	2,192,726	
 	 	49.93	
 	 	 	 	
2020	 	439,534	
 	 	21,627,662	
 	 	49.21	
 	 	26,561,519	
 	 	60.43	
 	 	 	 	
2021	 	350,514	
 	 	21,788,256	
 	 	62.16	
 	 	23,858,726	
 	 	68.07	
 	 	 	 	
2022	 	83,809	
 	 	4,077,357	
 	 	48.65	
 	 	4,576,067	
 	 	54.60	
 	 	 	 	
2023	 	142,793	
 	 	8,053,468	
 	 	56.40	
 	 	9,337,141	
 	 	65.39	
 	 	 	 	
2024	 	113,515	
 	 	6,021,082	
 	 	53.04	
 	 	7,083,890	
 	 	62.40	
 	 	 	 	
2025	 	186,894	
 	 	9,791,276	
 	 	52.39	
 	 	11,992,434	
 	 	64.17	
 	 	 	 	
2026	 	435,870	
 	 	24,966,736	
 	 	57.28	
 	 	31,688,709	
 	 	72.70	
 	 	 	 	
2027	 	13,937	
 	 	590,940	
 	 	42.40	
 	 	712,192	
 	 	51.10	
 	 	 	 	
Thereafter	 	372,897	
 	 	25,094,903	
 	 	67.30	
 	 	35,759,113	
 	 	95.90	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

38

 	 	

	Q4 2018	 	
 	Quarterly lease expirations - Los Angeles region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	
 	4 	 	 	
Total 2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	

Q1 2019	 	5,853	
 	 	352,701	
 	 	60.26	
 	 	352,701	
 	 	60.26	
 	 	 	 	
Q2 2019	 	5,561	
 	 	82,853	
 	 	14.90	
 	 	82,853	
 	 	14.90	
 	 	 	 	
Q3 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2019	 	30,505	
 	 	1,696,247	
 	 	55.61	
 	 	1,745,364	
 	 	57.22	
 	 	 	 	
Total 2019	 	41,919	
 	 	2,131,802	
 	 	50.86	
 	 	2,180,918	
 	 	52.03	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Total 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Q1 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2019	 	2,000	
 	 	11,808	
 	 	5.90	
 	 	11,808	
 	 	5.90	
 	 	 	 	
Q4 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Total 2019	 	2,000	
 	 	11,808	
 	 	5.90	
 	 	11,808	
 	 	5.90	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	
 	4 	 	 	
Total 2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	

Q1 2019	 	5,853	
 	 	352,701	
 	 	60.26	
 	 	352,701	
 	 	60.26	
 	 	 	 	
Q2 2019	 	5,561	
 	 	82,853	
 	 	14.90	
 	 	82,853	
 	 	14.90	
 	 	 	 	
Q3 2019	 	2,000	
 	 	11,808	
 	 	5.90	
 	 	11,808	
 	 	5.90	
 	 	 	 	
Q4 2019	 	30,505	
 	 	1,696,247	
 	 	55.61	
 	 	1,745,364	
 	 	57.22	
 	 	 	 	
Total 2019	 	43,919	
 	 	2,143,610	
 	 	48.81	
 	 	2,192,726	
 	 	49.93	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

39

 	 	

	Q4 2018	 	
 	Lease expirations - New York region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	4,196	
 	 	411,026	
 	 	97.96	
 	 	411,026	
 	 	97.96	
 	4 	 	 	
2019	 	363,809	
 	 	28,277,828	
 	 	77.73	
 	 	28,282,064	
 	 	77.74	
 	 	 	 	
2020	 	971,391	
 	 	77,558,959	
 	 	79.84	
 	 	77,751,852	
 	 	80.04	
 	 	 	 	
2021	 	363,714	
 	 	33,554,382	
 	 	92.25	
 	 	33,726,231	
 	 	92.73	
 	 	 	 	
2022	 	970,586	
 	 	90,317,718	
 	 	93.05	
 	 	90,807,080	
 	 	93.56	
 	 	 	 	
2023	 	267,284	
 	 	19,679,622	
 	 	73.63	
 	 	20,250,242	
 	 	75.76	
 	 	 	 	
2024	 	1,142,221	
 	 	83,156,926	
 	 	72.80	
 	 	86,952,633	
 	 	76.13	
 	 	 	 	
2025	 	584,817	
 	 	41,705,546	
 	 	71.31	
 	 	46,166,382	
 	 	78.94	
 	 	 	 	
2026	 	788,202	
 	 	66,891,389	
 	 	84.87	
 	 	70,952,358	
 	 	90.02	
 	 	 	 	
2027	 	321,407	
 	 	27,970,214	
 	 	87.02	
 	 	32,796,554	
 	 	102.04	
 	 	 	 	
Thereafter	 	3,915,695	
 	 	358,103,438	
 	 	91.45	
 	 	478,436,685	
 	 	122.18	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	6,514	
 	 	9,301,401	
 	 	1,427.91	
 	 	9,301,401	
 	 	1,427.91	
 	4 	 	 	
2019	 	761	
 	 	51,386	
 	 	67.52	
 	 	51,386	
 	 	67.52	
 	 	 	 	
2020	 	5,052	
 	 	597,860	
 	 	118.34	
 	 	597,860	
 	 	118.34	
 	 	 	 	
2021	 	26,225	
 	 	13,709,557	
 	 	522.77	
 	 	13,716,938	
 	 	523.05	
 	 	 	 	
2022	 	39,689	
 	 	6,945,031	
 	 	174.99	
 	 	6,999,522	
 	 	176.36	
 	 	 	 	
2023	 	1,847	
 	 	1,953,677	
 	 	1,057.76	
 	 	2,260,608	
 	 	1,223.94	
 	 	 	 	
2024	 	9,325	
 	 	4,048,774	
 	 	434.18	
 	 	4,773,795	
 	 	511.94	
 	 	 	 	
2025	 	1,872	
 	 	657,519	
 	 	351.24	
 	 	733,455	
 	 	391.80	
 	 	 	 	
2026	 	33,223	
 	 	5,334,960	
 	 	160.58	
 	 	5,788,325	
 	 	174.23	
 	 	 	 	
2027	 	243	
 	 	30,000	
 	 	123.46	
 	 	36,000	
 	 	148.15	
 	 	 	 	
Thereafter	 	205,824	
 	 	52,692,007	
 	 	256.01	
 	 	79,201,923	
 	 	384.80	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	10,710	
 	 	9,712,427	
 	 	906.86	
 	 	9,712,427	
 	 	906.86	
 	4 	 	 	
2019	 	364,570	
 	 	28,329,214	
 	 	77.71	
 	 	28,333,450	
 	 	77.72	
 	 	 	 	
2020	 	976,443	
 	 	78,156,819	
 	 	80.04	
 	 	78,349,712	
 	 	80.24	
 	 	 	 	
2021	 	389,939	
 	 	47,263,939	
 	 	121.21	
 	 	47,443,169	
 	 	121.67	
 	 	 	 	
2022	 	1,010,275	
 	 	97,262,749	
 	 	96.27	
 	 	97,806,602	
 	 	96.81	
 	 	 	 	
2023	 	269,131	
 	 	21,633,299	
 	 	80.38	
 	 	22,510,850	
 	 	83.64	
 	 	 	 	
2024	 	1,151,546	
 	 	87,205,700	
 	 	75.73	
 	 	91,726,428	
 	 	79.66	
 	 	 	 	
2025	 	586,689	
 	 	42,363,065	
 	 	72.21	
 	 	46,899,837	
 	 	79.94	
 	 	 	 	
2026	 	821,425	
 	 	72,226,349	
 	 	87.93	
 	 	76,740,683	
 	 	93.42	
 	 	 	 	
2027	 	321,650	
 	 	28,000,214	
 	 	87.05	
 	 	32,832,554	
 	 	102.08	
 	 	 	 	
Thereafter	 	4,121,519	
 	 	410,795,445	
 	 	99.67	
 	 	557,638,608	
 	 	135.30	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter. 	

40

 	 	

	Q4 2018	 	
 	Quarterly lease expirations - New York region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	4,196	
 	 	411,026	
 	 	97.96	
 	 	411,026	
 	 	97.96	
 	4 	 	 	
Total 2018	 	4,196	
 	 	411,026	
 	 	97.96	
 	 	411,026	
 	 	97.96	

Q1 2019	 	47,400	
 	 	5,070,543	
 	 	106.97	
 	 	5,070,543	
 	 	106.97	
 	 	 	 	
Q2 2019	 	41,878	
 	 	3,286,786	
 	 	78.48	
 	 	3,286,786	
 	 	78.48	
 	 	 	 	
Q3 2019	 	167,775	
 	 	9,968,183	
 	 	59.41	
 	 	9,969,020	
 	 	59.42	
 	 	 	 	
Q4 2019	 	106,756	
 	 	9,952,316	
 	 	93.22	
 	 	9,955,713	
 	 	93.26	
 	 	 	 	
Total 2019	 	363,809	
 	 	28,277,828	
 	 	77.73	
 	 	28,282,064	
 	 	77.74	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	6,514	
 	 	9,301,401	
 	 	1,427.91	
 	 	9,301,401	
 	 	1,427.91	
 	4 	 	 	
Total 2018	 	6,514	
 	 	9,301,401	
 	 	1,427.91	
 	 	9,301,401	
 	 	1,427.91	

Q1 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2019	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2019	 	761	
 	 	51,386	
 	 	67.52	
 	 	51,386	
 	 	67.52	
 	 	 	 	
Total 2019	 	761	
 	 	51,386	
 	 	67.52	
 	 	51,386	
 	 	67.52	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	10,710	
 	 	9,712,427	
 	 	906.86	
 	 	9,712,427	
 	 	906.86	
 	4 	 	 	
Total 2018	 	10,710	
 	 	9,712,427	
 	 	906.86	
 	 	9,712,427	
 	 	906.86	

Q1 2019	 	47,400	
 	 	5,070,543	
 	 	106.97	
 	 	5,070,543	
 	 	106.97	
 	 	 	 	
Q2 2019	 	41,878	
 	 	3,286,786	
 	 	78.48	
 	 	3,286,786	
 	 	78.48	
 	 	 	 	
Q3 2019	 	167,775	
 	 	9,968,183	
 	 	59.41	
 	 	9,969,020	
 	 	59.42	
 	 	 	 	
Q4 2019	 	107,517	
 	 	10,003,702	
 	 	93.04	
 	 	10,007,099	
 	 	93.07	
 	 	 	 	
Total 2019	 	364,570	
 	 	28,329,214	
 	 	77.71	
 	 	28,333,449	
 	 	77.72	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

41

 	 	

	Q4 2018	 	
 	Lease expirations - San Francisco region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2019	 	608,530	
 	 	28,926,708	
 	 	47.54	
 	 	29,269,689	
 	 	48.10	
 	 	 	 	
2020	 	587,367	
 	 	39,950,377	
 	 	68.02	
 	 	40,486,905	
 	 	68.93	
 	 	 	 	
2021	 	836,689	
 	 	39,305,715	
 	 	46.98	
 	 	41,730,498	
 	 	49.88	
 	 	 	 	
2022	 	699,712	
 	 	42,632,668	
 	 	60.93	
 	 	45,898,507	
 	 	65.60	
 	 	 	 	
2023	 	466,103	
 	 	32,647,245	
 	 	70.04	
 	 	36,041,838	
 	 	77.33	
 	 	 	 	
2024	 	563,518	
 	 	34,502,985	
 	 	61.23	
 	 	39,268,938	
 	 	69.69	
 	 	 	 	
2025	 	280,829	
 	 	19,406,275	
 	 	69.10	
 	 	22,877,910	
 	 	81.47	
 	 	 	 	
2026	 	291,991	
 	 	21,555,692	
 	 	73.82	
 	 	24,293,860	
 	 	83.20	
 	 	 	 	
2027	 	308,184	
 	 	24,487,926	
 	 	79.46	
 	 	28,704,522	
 	 	93.14	
 	 	 	 	
Thereafter	 	1,628,133	
 	 	120,885,073	
 	 	74.25	
 	 	156,366,690	
 	 	96.04	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	
 	4 	 	 	
2019	 	8,657	
 	 	503,784	
 	 	58.19	
 	 	503,784	
 	 	58.19	
 	 	 	 	
2020	 	31,336	
 	 	2,028,372	
 	 	64.73	
 	 	2,065,195	
 	 	65.90	
 	 	 	 	
2021	 	24,028	
 	 	1,587,136	
 	 	66.05	
 	 	1,614,566	
 	 	67.20	
 	 	 	 	
2022	 	38,819	
 	 	1,937,782	
 	 	49.92	
 	 	2,002,007	
 	 	51.57	
 	 	 	 	
2023	 	50,551	
 	 	2,985,081	
 	 	59.05	
 	 	3,109,143	
 	 	61.51	
 	 	 	 	
2024	 	9,388	
 	 	672,069	
 	 	71.59	
 	 	736,337	
 	 	78.43	
 	 	 	 	
2025	 	22,933	
 	 	1,524,118	
 	 	66.46	
 	 	1,692,146	
 	 	73.79	
 	 	 	 	
2026	 	25,598	
 	 	1,859,421	
 	 	72.64	
 	 	2,055,950	
 	 	80.32	
 	 	 	 	
2027	 	5,056	
 	 	333,886	
 	 	66.04	
 	 	391,023	
 	 	77.34	
 	 	 	 	
Thereafter	 	57,413	
 	 	3,256,610	
 	 	56.72	
 	 	3,941,888	
 	 	68.66	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	2,970	
 	 	213,393	
 	 	$	71.85	
 	 	213,393	
 	 	$	71.85	
 	4 	 	 	
2019	 	617,187	
 	 	29,430,492	
 	 	47.68	
 	 	29,773,473	
 	 	48.24	
 	 	 	 	
2020	 	618,703	
 	 	41,978,749	
 	 	67.85	
 	 	42,552,100	
 	 	68.78	
 	 	 	 	
2021	 	860,717	
 	 	40,892,851	
 	 	47.51	
 	 	43,345,064	
 	 	50.36	
 	 	 	 	
2022	 	738,531	
 	 	44,570,450	
 	 	60.35	
 	 	47,900,514	
 	 	64.86	
 	 	 	 	
2023	 	516,654	
 	 	35,632,326	
 	 	68.97	
 	 	39,150,981	
 	 	75.78	
 	 	 	 	
2024	 	572,906	
 	 	35,175,054	
 	 	61.40	
 	 	40,005,275	
 	 	69.83	
 	 	 	 	
2025	 	303,762	
 	 	20,930,393	
 	 	68.90	
 	 	24,570,056	
 	 	80.89	
 	 	 	 	
2026	 	317,589	
 	 	23,415,113	
 	 	73.73	
 	 	26,349,810	
 	 	82.97	
 	 	 	 	
2027	 	313,240	
 	 	24,821,812	
 	 	79.24	
 	 	29,095,545	
 	 	92.89	
 	 	 	 	
Thereafter	 	1,685,546	
 	 	124,141,683	
 	 	73.65	
 	 	160,308,578	
 	 	95.11	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

42

 	 	

	Q4 2018	 	
 	Lease expirations - San Francisco region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Total 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	

Q1 2019	 	52,662	
 	 	3,273,704	
 	 	62.16	
 	 	3,343,446	
 	 	63.49	
 	 	 	 	
Q2 2019	 	29,348	
 	 	1,260,128	
 	 	42.94	
 	 	1,260,128	
 	 	42.94	
 	 	 	 	
Q3 2019	 	197,213	
 	 	9,253,442	
 	 	46.92	
 	 	9,264,046	
 	 	46.97	
 	 	 	 	
Q4 2019	 	329,307	
 	 	15,139,435	
 	 	45.97	
 	 	15,402,069	
 	 	46.77	
 	 	 	 	
Total 2019	 	608,530	
 	 	28,926,708	
 	 	47.54	
 	 	29,269,689	
 	 	48.10	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	
 	4 	 	 	
Total 2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	

Q1 2019	 	3,820	
 	 	170,770	
 	 	44.70	
 	 	170,770	
 	 	44.70	
 	 	 	 	
Q2 2019	 	1,120	
 	 	113,186	
 	 	101.06	
 	 	113,186	
 	 	101.06	
 	 	 	 	
Q3 2019	 	693	
 	 	62,327	
 	 	89.94	
 	 	62,327	
 	 	89.94	
 	 	 	 	
Q4 2019	 	3,024	
 	 	157,500	
 	 	52.08	
 	 	157,500	
 	 	52.08	
 	 	 	 	
Total 2019	 	8,657	
 	 	503,784	
 	 	58.19	
 	 	503,784	
 	 	58.19	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	
 	4 	 	 	
Total 2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	

Q1 2019	 	56,482	
 	 	3,444,474	
 	 	60.98	
 	 	3,514,216	
 	 	62.22	
 	 	 	 	
Q2 2019	 	30,468	
 	 	1,373,315	
 	 	45.07	
 	 	1,373,315	
 	 	45.07	
 	 	 	 	
Q3 2019	 	197,906	
 	 	9,315,769	
 	 	47.07	
 	 	9,326,374	
 	 	47.13	
 	 	 	 	
Q4 2019	 	332,331	
 	 	15,296,935	
 	 	46.03	
 	 	15,559,569	
 	 	46.82	
 	 	 	 	
Total 2019	 	617,187	
 	 	29,430,493	
 	 	47.68	
 	 	29,773,473	
 	 	48.24	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

43

 	 	

	Q4 2018	 	
 	Lease expirations - Washington, DC region in-service properties1, 2, 3	 	

as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	20,957	
 	 	1,319,679	
 	 	62.97	
 	 	1,319,679	
 	 	62.97	
 	4 	 	 	
2019	 	1,035,860	
 	 	51,874,644	
 	 	50.08	
 	 	51,623,089	
 	 	49.84	
 	 	 	 	
2020	 	1,257,406	
 	 	56,024,814	
 	 	44.56	
 	 	57,638,844	
 	 	45.84	
 	 	 	 	
2021	 	998,067	
 	 	55,082,692	
 	 	55.19	
 	 	58,175,486	
 	 	58.29	
 	 	 	 	
2022	 	627,208	
 	 	28,359,779	
 	 	45.22	
 	 	30,602,273	
 	 	48.79	
 	 	 	 	
2023	 	381,376	
 	 	19,335,624	
 	 	50.70	
 	 	21,636,448	
 	 	56.73	
 	 	 	 	
2024	 	705,006	
 	 	36,896,595	
 	 	52.34	
 	 	40,832,875	
 	 	57.92	
 	 	 	 	
2025	 	355,890	
 	 	15,385,834	
 	 	43.23	
 	 	17,302,729	
 	 	48.62	
 	 	 	 	
2026	 	400,287	
 	 	32,748,209	
 	 	81.81	
 	 	37,689,450	
 	 	94.16	
 	 	 	 	
2027	 	516,266	
 	 	30,195,795	
 	 	58.49	
 	 	34,642,514	
 	 	67.10	
 	 	 	 	
Thereafter	 	2,009,176	
 	 	129,260,514	
 	 	64.34	
 	 	168,411,998	
 	 	83.82	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	8,000	
 	 	491,332	
 	 	61.42	
 	 	491,332	
 	 	61.42	
 	4 	 	 	
2019	 	60,408	
 	 	3,375,044	
 	 	55.87	
 	 	4,100,970	
 	 	67.89	
 	 	 	 	
2020	 	76,931	
 	 	4,886,976	
 	 	63.52	
 	 	4,850,863	
 	 	63.05	
 	 	 	 	
2021	 	53,161	
 	 	3,773,598	
 	 	70.98	
 	 	3,879,126	
 	 	72.97	
 	 	 	 	
2022	 	40,918	
 	 	2,643,057	
 	 	64.59	
 	 	2,746,865	
 	 	67.13	
 	 	 	 	
2023	 	89,801	
 	 	5,477,793	
 	 	61.00	
 	 	5,743,836	
 	 	63.96	
 	 	 	 	
2024	 	29,645	
 	 	1,786,331	
 	 	60.26	
 	 	1,946,215	
 	 	65.65	
 	 	 	 	
2025	 	77,110	
 	 	2,984,177	
 	 	38.70	
 	 	3,252,881	
 	 	42.18	
 	 	 	 	
2026	 	33,594	
 	 	2,361,387	
 	 	70.29	
 	 	2,569,005	
 	 	76.47	
 	 	 	 	
2027	 	39,300	
 	 	2,765,127	
 	 	70.36	
 	 	3,223,882	
 	 	82.03	
 	 	 	 	
Thereafter	 	130,134	
 	 	4,931,093	
 	 	37.89	
 	 	5,752,168	
 	 	44.20	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	28,957	
 	 	1,811,011	
 	 	62.54	
 	 	1,811,011	
 	 	62.54	
 	4 	 	 	
2019	 	1,096,268	
 	 	55,249,688	
 	 	50.40	
 	 	55,724,059	
 	 	50.83	
 	 	 	 	
2020	 	1,334,337	
 	 	60,911,790	
 	 	45.65	
 	 	62,489,707	
 	 	46.83	
 	 	 	 	
2021	 	1,051,228	
 	 	58,856,290	
 	 	55.99	
 	 	62,054,612	
 	 	59.03	
 	 	 	 	
2022	 	668,126	
 	 	31,002,836	
 	 	46.40	
 	 	33,349,138	
 	 	49.91	
 	 	 	 	
2023	 	471,177	
 	 	24,813,417	
 	 	52.66	
 	 	27,380,284	
 	 	58.11	
 	 	 	 	
2024	 	734,651	
 	 	38,682,926	
 	 	52.65	
 	 	42,779,090	
 	 	58.23	
 	 	 	 	
2025	 	433,000	
 	 	18,370,011	
 	 	42.42	
 	 	20,555,610	
 	 	47.47	
 	 	 	 	
2026	 	433,881	
 	 	35,109,596	
 	 	80.92	
 	 	40,258,455	
 	 	92.79	
 	 	 	 	
2027	 	555,566	
 	 	32,960,922	
 	 	59.33	
 	 	37,866,396	
 	 	68.16	
 	 	 	 	
Thereafter	 	2,139,310	
 	 	134,191,607	
 	 	62.73	
 	 	174,164,166	
 	 	81.41	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

44

 	 	

	Q4 2018	 	
 	Quarterly lease expirations - Washington, DC region in-service properties1, 2, 3	 	
 
as of December 31, 2018 

OFFICE	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	20,957	
 	 	1,319,679	
 	 	62.97	
 	 	1,319,679	
 	 	62.97	
 	4 	 	 	
Total 2018	 	20,957	
 	 	1,319,679	
 	 	62.97	
 	 	1,319,679	
 	 	62.97	

Q1 2019	 	287,931	
 	 	17,914,652	
 	 	62.22	
 	 	17,925,738	
 	 	62.26	
 	 	 	 	
Q2 2019	 	127,886	
 	 	5,457,686	
 	 	42.68	
 	 	5,468,940	
 	 	42.76	
 	 	 	 	
Q3 2019	 	442,956	
 	 	16,410,818	
 	 	37.05	
 	 	16,455,935	
 	 	37.15	
 	 	 	 	
Q4 2019	 	177,087	
 	 	12,091,488	
 	 	68.28	
 	 	11,772,477	
 	 	66.48	
 	 	 	 	
Total 2019	 	1,035,860	
 	 	51,874,644	
 	 	50.08	
 	 	51,623,089	
 	 	49.84	

RETAIL	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	8,000	
 	 	491,332	
 	 	61.42	
 	 	491,332	
 	 	61.42	
 	4 	 	 	
Total 2018	 	8,000	
 	 	491,332	
 	 	61.42	
 	 	491,332	
 	 	61.42	

Q1 2019	 	30,454	
 	 	1,124,939	
 	 	36.94	
 	 	1,124,939	
 	 	36.94	
 	 	 	 	
Q2 2019	 	1,324	
 	 	300,000	
 	 	226.59	
 	 	1,020,000	
 	 	770.39	
 	 	 	 	
Q3 2019	 	7,014	
 	 	398,541	
 	 	56.82	
 	 	398,541	
 	 	56.82	
 	 	 	 	
Q4 2019	 	21,616	
 	 	1,551,563	
 	 	71.78	
 	 	1,557,490	
 	 	72.05	
 	 	 	 	
Total 2019	 	60,408	
 	 	3,375,044	
 	 	55.87	
 	 	4,100,970	
 	 	67.89	

TOTAL PROPERTY TYPES	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Lease Expiration	 	 Footage Subject to	 	 	 	 	 	 	 	
by Quarter	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
Q1 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q2 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q3 2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Q4 2018	 	28,957	
 	 	1,811,011	
 	 	62.54	
 	 	1,811,011	
 	 	62.54	
 	4 	 	 	
Total 2018	 	28,957	
 	 	1,811,011	
 	 	62.54	
 	 	1,811,011	
 	 	62.54	

Q1 2019	 	318,385	
 	 	19,039,591	
 	 	59.80	
 	 	19,050,677	
 	 	59.84	
 	 	 	 	
Q2 2019	 	129,210	
 	 	5,757,686	
 	 	44.56	
 	 	6,488,940	
 	 	50.22	
 	 	 	 	
Q3 2019	 	449,970	
 	 	16,809,359	
 	 	37.36	
 	 	16,854,476	
 	 	37.46	
 	 	 	 	
Q4 2019	 	198,703	
 	 	13,643,051	
 	 	68.66	
 	 	13,329,966	
 	 	67.08	
 	 	 	 	
Total 2019	 	1,096,268	
 	 	55,249,687	
 	 	50.40	
 	 	55,724,059	
 	 	50.83	
 	 	 	 	
_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.	
 	 	
4 	Includes square feet expiring on the last day of the current quarter.	

45

 	 	

	Q4 2018	 	
 	Lease expirations - CBD properties1, 2, 3	 	
 
as of December 31, 2018 

Boston	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	38,104	
 	 	2,079,197	
 	 	54.57	
 	 	2,079,197	
 	 	54.57	
 	4 	 	 	
2019	 	164,800	
 	 	10,067,108	
 	 	61.09	
 	 	10,181,235	
 	 	61.78	
 	 	 	 	
2020	 	288,719	
 	 	19,005,430	
 	 	65.83	
 	 	19,823,761	
 	 	68.66	
 	 	 	 	
2021	 	398,824	
 	 	24,472,812	
 	 	61.36	
 	 	24,201,496	
 	 	60.68	
 	 	 	 	
2022	 	959,881	
 	 	60,544,253	
 	 	63.07	
 	 	61,630,821	
 	 	64.21	
 	 	 	 	
2023	 	531,267	
 	 	37,876,234	
 	 	71.29	
 	 	40,644,318	
 	 	76.50	
 	 	 	 	
2024	 	429,391	
 	 	26,649,539	
 	 	62.06	
 	 	29,241,274	
 	 	68.10	
 	 	 	 	
2025	 	791,330	
 	 	54,978,154	
 	 	69.48	
 	 	60,559,501	
 	 	76.53	
 	 	 	 	
2026	 	999,370	
 	 	76,759,463	
 	 	76.81	
 	 	84,014,490	
 	 	84.07	
 	 	 	 	
2027	 	336,877	
 	 	28,428,571	
 	 	84.39	
 	 	31,839,117	
 	 	94.51	
 	 	 	 	
Thereafter	 	3,818,805	
 	 	223,638,953	
 	 	58.56	
 	 	267,245,483	
 	 	69.98	

Los Angeles	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	5,218	
 	 	328,734	
 	 	63.00	
 	 	328,734	
 	 	63.00	
 	4 	 	 	
2019	 	43,919	
 	 	2,143,610	
 	 	48.81	
 	 	2,192,726	
 	 	49.93	
 	 	 	 	
2020	 	439,534	
 	 	21,627,661	
 	 	49.21	
 	 	26,561,518	
 	 	60.43	
 	 	 	 	
2021	 	350,514	
 	 	21,788,256	
 	 	62.16	
 	 	23,858,726	
 	 	68.07	
 	 	 	 	
2022	 	83,809	
 	 	4,077,357	
 	 	48.65	
 	 	4,576,067	
 	 	54.60	
 	 	 	 	
2023	 	142,793	
 	 	8,053,468	
 	 	56.40	
 	 	9,337,141	
 	 	65.39	
 	 	 	 	
2024	 	113,515	
 	 	6,021,082	
 	 	53.04	
 	 	7,083,890	
 	 	62.40	
 	 	 	 	
2025	 	186,894	
 	 	9,791,276	
 	 	52.39	
 	 	11,992,434	
 	 	64.17	
 	 	 	 	
2026	 	435,870	
 	 	24,966,737	
 	 	57.28	
 	 	31,688,709	
 	 	72.70	
 	 	 	 	
2027	 	13,937	
 	 	590,940	
 	 	42.40	
 	 	712,192	
 	 	51.10	
 	 	 	 	
Thereafter	 	372,897	
 	 	25,094,903	
 	 	67.30	
 	 	35,759,112	
 	 	95.90	

New York	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	10,710	
 	 	9,712,427	
 	 	906.86	
 	 	9,712,427	
 	 	906.86	
 	4 	 	 	
2019	 	271,179	
 	 	24,837,548	
 	 	91.59	
 	 	24,837,548	
 	 	91.59	
 	 	 	 	
2020	 	653,612	
 	 	66,467,211	
 	 	101.69	
 	 	66,497,429	
 	 	101.74	
 	 	 	 	
2021	 	274,919	
 	 	43,341,261	
 	 	157.65	
 	 	43,474,752	
 	 	158.14	
 	 	 	 	
2022	 	942,239	
 	 	94,816,185	
 	 	100.63	
 	 	95,302,118	
 	 	101.14	
 	 	 	 	
2023	 	154,405	
 	 	17,950,184	
 	 	116.25	
 	 	18,582,801	
 	 	120.35	
 	 	 	 	
2024	 	712,253	
 	 	71,431,403	
 	 	100.29	
 	 	75,329,759	
 	 	105.76	
 	 	 	 	
2025	 	301,302	
 	 	31,930,645	
 	 	105.98	
 	 	35,066,998	
 	 	116.38	
 	 	 	 	
2026	 	596,116	
 	 	64,483,773	
 	 	108.17	
 	 	68,243,182	
 	 	114.48	
 	 	 	 	
2027	 	240,939	
 	 	25,107,993	
 	 	104.21	
 	 	29,651,174	
 	 	123.07	
 	 	 	 	
Thereafter	 	3,854,925	
 	 	401,124,086	
 	 	104.05	
 	 	546,897,575	
 	 	141.87	

46

 	 	

	Q4 2018	 	
 	Lease expirations - CBD properties (continued)1, 2, 3	 	
 
as of December 31, 2018 

San Francisco	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	2,970	
 	 	213,393	
 	 	71.85	
 	 	213,393	
 	 	71.85	
 	4 	 	 	
2019	 	115,429	
 	 	7,563,452	
 	 	65.52	
 	 	7,590,760	
 	 	65.76	
 	 	 	 	
2020	 	502,334	
 	 	36,770,875	
 	 	73.20	
 	 	37,196,763	
 	 	74.05	
 	 	 	 	
2021	 	430,616	
 	 	28,613,264	
 	 	66.45	
 	 	30,290,275	
 	 	70.34	
 	 	 	 	
2022	 	429,308	
 	 	28,718,012	
 	 	66.89	
 	 	30,917,539	
 	 	72.02	
 	 	 	 	
2023	 	387,486	
 	 	27,575,485	
 	 	71.17	
 	 	30,167,134	
 	 	77.85	
 	 	 	 	
2024	 	520,378	
 	 	33,609,632	
 	 	64.59	
 	 	36,198,434	
 	 	69.56	
 	 	 	 	
2025	 	196,895	
 	 	13,845,089	
 	 	70.32	
 	 	15,835,168	
 	 	80.42	
 	 	 	 	
2026	 	317,589	
 	 	23,415,113	
 	 	73.73	
 	 	26,349,809	
 	 	82.97	
 	 	 	 	
2027	 	313,240	
 	 	24,821,812	
 	 	79.24	
 	 	29,095,545	
 	 	92.89	
 	 	 	 	
Thereafter	 	1,636,522	
 	 	121,966,338	
 	 	74.53	
 	 	157,354,079	
 	 	96.15	

Washington, DC	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	20,957	
 	 	1,319,679	
 	 	62.97	
 	 	1,319,679	
 	 	62.97	
 	4 	 	 	
2019	 	414,661	
 	 	28,358,836	
 	 	68.39	
 	 	28,070,222	
 	 	67.69	
 	 	 	 	
2020	 	184,225	
 	 	9,984,449	
 	 	54.20	
 	 	10,274,717	
 	 	55.77	
 	 	 	 	
2021	 	583,789	
 	 	40,431,983	
 	 	69.26	
 	 	42,729,669	
 	 	73.19	
 	 	 	 	
2022	 	138,539	
 	 	9,053,185	
 	 	65.35	
 	 	9,603,998	
 	 	69.32	
 	 	 	 	
2023	 	51,216	
 	 	3,423,492	
 	 	66.84	
 	 	3,867,456	
 	 	75.51	
 	 	 	 	
2024	 	186,202	
 	 	13,021,923	
 	 	69.93	
 	 	14,475,078	
 	 	77.74	
 	 	 	 	
2025	 	86,404	
 	 	4,737,680	
 	 	54.83	
 	 	5,551,014	
 	 	64.24	
 	 	 	 	
2026	 	348,373	
 	 	30,609,422	
 	 	87.86	
 	 	34,979,376	
 	 	100.41	
 	 	 	 	
2027	 	213,230	
 	 	15,457,000	
 	 	72.49	
 	 	17,887,500	
 	 	83.89	
 	 	 	 	
Thereafter	 	1,304,251	
 	 	94,201,907	
 	 	72.23	
 	 	121,209,631	
 	 	92.93	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.  	
 	 	
4 	Includes square feet expiring on the last day of the current quarter. 	

47

 	 	

	Q4 2018	 	
 	Lease expirations - Suburban properties1, 2, 3	 	
 
as of December 31, 2018 

Boston	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2019	 	305,963	
 	 	12,039,694	
 	 	39.35	
 	 	12,105,841	
 	 	39.57	
 	 	 	 	
2020	 	289,158	
 	 	12,896,859	
 	 	44.60	
 	 	12,932,098	
 	 	44.72	
 	 	 	 	
2021	 	491,310	
 	 	19,317,325	
 	 	39.32	
 	 	19,826,567	
 	 	40.35	
 	 	 	 	
2022	 	605,999	
 	 	23,750,937	
 	 	39.19	
 	 	24,007,973	
 	 	39.62	
 	 	 	 	
2023	 	324,728	
 	 	13,061,415	
 	 	40.22	
 	 	13,953,597	
 	 	42.97	
 	 	 	 	
2024	 	615,144	
 	 	25,961,249	
 	 	42.20	
 	 	28,420,967	
 	 	46.20	
 	 	 	 	
2025	 	502,715	
 	 	24,849,722	
 	 	49.43	
 	 	26,806,299	
 	 	53.32	
 	 	 	 	
2026	 	213,461	
 	 	8,832,365	
 	 	41.38	
 	 	11,920,551	
 	 	55.84	
 	 	 	 	
2027	 	320,650	
 	 	12,623,103	
 	 	39.37	
 	 	15,147,899	
 	 	47.24	
 	 	 	 	
Thereafter	 	587,840	
 	 	25,443,544	
 	 	43.28	
 	 	26,005,760	
 	 	44.24	

New York	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2019	 	93,391	
 	 	3,491,666	
 	 	37.39	
 	 	3,495,901	
 	 	37.43	
 	 	 	 	
2020	 	322,831	
 	 	11,689,608	
 	 	36.21	
 	 	11,852,283	
 	 	36.71	
 	 	 	 	
2021	 	115,020	
 	 	3,922,678	
 	 	34.10	
 	 	3,968,417	
 	 	34.50	
 	 	 	 	
2022	 	68,036	
 	 	2,446,564	
 	 	35.96	
 	 	2,504,483	
 	 	36.81	
 	 	 	 	
2023	 	114,726	
 	 	3,683,115	
 	 	32.10	
 	 	3,928,049	
 	 	34.24	
 	 	 	 	
2024	 	439,293	
 	 	15,774,297	
 	 	35.91	
 	 	16,396,669	
 	 	37.33	
 	 	 	 	
2025	 	285,387	
 	 	10,432,421	
 	 	36.56	
 	 	11,832,839	
 	 	41.46	
 	 	 	 	
2026	 	225,309	
 	 	7,742,576	
 	 	34.36	
 	 	8,497,501	
 	 	37.71	
 	 	 	 	
2027	 	80,711	
 	 	2,892,221	
 	 	35.83	
 	 	3,181,379	
 	 	39.42	
 	 	 	 	
Thereafter	 	266,594	
 	 	9,671,360	
 	 	36.28	
 	 	10,741,033	
 	 	40.29	

San Francisco	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2019	 	501,758	
 	 	21,867,041	
 	 	43.58	
 	 	22,182,713	
 	 	44.21	
 	 	 	 	
2020	 	116,369	
 	 	5,207,874	
 	 	44.75	
 	 	5,355,337	
 	 	46.02	
 	 	 	 	
2021	 	430,101	
 	 	12,279,586	
 	 	28.55	
 	 	13,054,789	
 	 	30.35	
 	 	 	 	
2022	 	309,223	
 	 	15,852,439	
 	 	51.27	
 	 	16,982,975	
 	 	54.92	
 	 	 	 	
2023	 	129,168	
 	 	8,056,841	
 	 	62.37	
 	 	8,983,847	
 	 	69.55	
 	 	 	 	
2024	 	52,528	
 	 	1,565,421	
 	 	29.80	
 	 	3,806,841	
 	 	72.47	
 	 	 	 	
2025	 	106,867	
 	 	7,085,304	
 	 	66.30	
 	 	8,734,889	
 	 	81.74	
 	 	 	 	
2026	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
2027	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	 	 	
Thereafter	 	49,024	
 	 	2,175,345	
 	 	44.37	
 	 	2,954,499	
 	 	60.27	

48

 	 	

	Q4 2018	 	
 	Lease expirations - Suburban properties (continued)1, 2, 3	 	
 
as of December 31, 2018 

Washington, DC	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 Rentable Square	 	Current Annualized Rental Obligations Under Expiring Leases	 	Annualized Rental Obligations Under Expiring Leases with future step-ups	 	 	
Year of Lease	 	 Footage Subject to	 	 	 	 	 	 	 	
Expiration	 	 Expiring Leases	 	$	 	$/PSF	 	$	 	$/PSF	 	 	 	
2018	 	8,000	
 	 	491,332	
 	 	61.42	
 	 	491,332	
 	 	61.42	
 	4 	 	 	
2019	 	681,607	
 	 	26,890,851	
 	 	39.45	
 	 	27,653,837	
 	 	40.57	
 	 	 	 	
2020	 	1,150,112	
 	 	50,927,341	
 	 	44.28	
 	 	52,214,990	
 	 	45.40	
 	 	 	 	
2021	 	467,439	
 	 	18,424,308	
 	 	39.42	
 	 	19,324,943	
 	 	41.34	
 	 	 	 	
2022	 	529,587	
 	 	21,949,651	
 	 	41.45	
 	 	23,745,140	
 	 	44.84	
 	 	 	 	
2023	 	419,961	
 	 	21,389,925	
 	 	50.93	
 	 	23,512,828	
 	 	55.99	
 	 	 	 	
2024	 	548,449	
 	 	25,661,004	
 	 	46.79	
 	 	28,304,012	
 	 	51.61	
 	 	 	 	
2025	 	346,596	
 	 	13,632,330	
 	 	39.33	
 	 	15,004,596	
 	 	43.29	
 	 	 	 	
2026	 	85,508	
 	 	4,500,173	
 	 	52.63	
 	 	5,279,078	
 	 	61.74	
 	 	 	 	
2027	 	342,336	
 	 	17,503,921	
 	 	51.13	
 	 	19,978,895	
 	 	58.36	
 	 	 	 	
Thereafter	 	835,059	
 	 	39,989,700	
 	 	47.89	
 	 	52,954,535	
 	 	63.41	

_____________
 	 	
1 	For the Company's definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.	
 	 	
2 	Includes 100% of joint venture properties and partially placed in-service leased space. Does not include residential units and hotel.	
 	 	
3 	Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.  	
 	 	
4 	Includes square feet expiring on the last day of the current quarter. 	

49

 	 	

	Q4 2018	 	
 	Research coverage	 	

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties' performance made by the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

 	 	 	 	
Equity Research Coverage	 	 	 	
Argus Research Company	Jacob Kilstein	 	646.747.5447	
Bank of America Merrill Lynch	Jeffrey Spector / Jamie Feldman	 	646.855.1363 / 646.855.5808	
Barclays Capital	Ross Smotrich	 	212.526.2306	
BMO Capital	John Kim	 	212.885.4115	
BTIG	Tom Catherwood	 	212.738.6140	
Citigroup Global Markets	Michael Bilerman / Emmanuel Korchman	 	212.816.1383 / 212.816.1382	
D.A. Davidson & Co.	Barry Oxford	 	212.240.9871	
Deutsche Bank Securities	Derek Johnston	 	212.250.5683	
Evercore ISI	Steve Sakwa / Jason Green	 	212.446.9462	
Green Street Advisors	Daniel Ismail	 	949.640.8780	
Goldman Sachs	Andrew Rosivach	 	212.902.2796	
Jefferies & Co.	Jonathan Petersen / Omotayo Okusanya	 	212.284.1705 / 212.336.7076	
J.P. Morgan Securities	Anthony Paolone	 	212.622.6682	
KeyBanc Capital Markets	Craig Mailman / Jordan Sadler	 	917.368.2316 / 917.368.2280	
Mizuho Securities	Zachary Silverberg
	 	212.205.7855
	
Morgan Stanley	Vikram Malhotra	 	212.761.7064	
Morningstar	Brad Schwer	 	312.244.7061	
RBC Capital Markets	Mike Carroll	 	440.715.2649	
RW Baird	David Rodgers	 	216.737.7341	
Sandler O'Neill & Partners	Alexander Goldfarb / Daniel Santos	 	212.466.7937 / 212.466.7927	
Scotia Capital Inc.
	Nicholas Yulico	 	212.225.6904 
	
Stifel, Nicolaus & Company	John Guinee / Aaron Wolf	 	443.224.1307 / 443.224.1206	
SunTrust Robinson Humphrey	Michael Lewis	 	212.319.5659	
UBS Securities	Frank Lee	 	415.352.5679	
Wells Fargo Securities	Blaine Heck	 	443.263.6529	

 	
 	 	 	 	
Debt Research Coverage	 	 	 	
Bank of America Merrill Lynch	Andrew Molloy	 	646.855.6435	
Barclays	Peter Troisi	 	212.412.3695	
J.P. Morgan Securities	Mark Streeter	 	212.834.5086	
US Bank	Bill Stafford	 	877.558.2605	
Wells Fargo	Thierry Perrein / Kevin McClure	 	704.715.8455 / 704.410.3252	

 	
 	 	 	 	
Rating Agencies	 	 	 	
Fitch Ratings	Stephen Boyd	 	212.908.9153	
Moody's Investors Service	Ranjini Venkatesan	 	212.553.3828	
Standard & Poor's	Michael Souers	 	212.438.2508	

50

 	 	

	Q4 2018	 	
 	Definitions	 	
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this supplemental report and, if applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents the Company files or furnishes to the SEC from time to time. 
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), 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 priority allocations 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 presenting 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 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, liquidations and other matters. Moreover, 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. As a result, presentations of “BXP's Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company's financial information presented in accordance with GAAP.  Unless noted otherwise, reconciliations of “BXP's Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 56.   
Annualized Rental Obligations
Annualized Rental Obligations is defined as monthly Rental Obligations, as of the last day of the reporting period, multiplied by twelve (12).
Average Economic Occupancy
Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property's total possible gross revenue. 
Average Monthly Rental Rates
Average Monthly Rental Rates are calculated by the Company as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP by (B) the number of occupied units for each month within the applicable fiscal period. 
Average Physical Occupancy
Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage. 
Debt to Market Capitalization Ratio
Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector that equals the quotient of (A) the Company’s Consolidated Debt divided by (B) the Company’s Consolidated Market Capitalization, presented as a percentage.  Consolidated Market Capitalization  is the sum of (x) the Company's Consolidated Debt plus (y) the market value of the Company's outstanding equity securities calculated using the closing price per share of common stock of the Company, as reported by the New York Stock Exchange, multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, (4) on and after February 6, 2015, which was the end of the performance period for 2012 OPP Units and thus the date earned, common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) on and after February 4, 2016, which was the end of the performance period for 2013 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units, (6) on and after February 3, 2017, which was the end of the performance period for 2014 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units and (7) on and after February 4, 2018, which was the end of the performance period for 2015 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2015 MYLTIP Units that were issued in the form of LTIP Units plus (z) outstanding shares of 5.25% Series B Cumulative Redeemable Preferred Stock multiplied by their fixed liquidation preference of $2,500 per share. The calculation of Consolidated Market Capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, 2016, 2017 and 2018 MYLTIP Units are not included.    
The Company also presents BXP’s Share of Market Capitalization, which is calculated in a similar manner, except that BXP’s Share of Debt is utilized instead of the Company’s Consolidated Debt in both the numerator and the denominator. The Company presents these ratios because its degree of leverage could affect its ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of the Company, and as such will fluctuate with changes in such price and do not necessarily reflect the Company's capacity to incur additional debt to finance its activities or its ability to manage its existing debt obligations. However, for a company like Boston Properties, Inc., whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of the Company's outstanding indebtedness.  

51

 	 	

	Q4 2018	 	
 	Definitions (continued)	 	
Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)
Pursuant to the definition of Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), the Company calculates Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate, or “EBITDA re ,” as net income (loss) attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus net income attributable to noncontrolling interests, interest expense, losses (gains) from early extinguishments of debt, depreciation and amortization expense, impairment loss and adjustments to reflect the Company's share of EBITDA re  from unconsolidated joint ventures less gains on sales of real estate. EBITDA re  is a non-GAAP financial measure. The Company uses EBITDA re  internally as a performance measure and believes EBITDA re  provides useful information to investors regarding its financial condition and results of operations at the corporate level because, when compared across periods, EBITDA re  reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and acquisition and development activities on an unleveraged basis, providing perspective not immediately apparent from net (loss) income attributable to Boston Properties, Inc. common shareholders.   
In some cases the Company also presents (A) BXP's Share of EBITDAre – cash, which is BXP's Share of EBITDAre after eliminating the effects of straight-line rent, fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements, and (B) Annualized EBITDA re , which is EBITDA re  for the applicable fiscal quarter ended multiplied by four (4). Presenting BXP's Share of EBITDA re – cash allows investors to compare EBITDA re  across periods without taking into account the effect of certain non-cash rental revenues, ground rent expense and stock based compensation expense. Similar to depreciation and amortization, because of historical cost accounting, fair value lease revenue may distort operating performance measures at the property level. Additionally, presenting EBITDA re  excluding the impact of straight-line rent provides investors with an alternative view of operating performance at the property level that more closely reflects rental revenue generated at the property level without regard to future contractual increases in rental rates. In addition, the Company’s management believes that the presentation of Annualized EBITDA re  provides useful information to investors regarding the Company’s results of operations because it enables investors to more easily compare quarterly EBITDA re  to EBITDA re  from full fiscal years.  
The Company's computation of EBITDAre may not be comparable to EBITDAre reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.  The Company believes that in order to facilitate a clear understanding of its operating results, EBITDA re  should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company's consolidated financial statements. EBITDA re  should not be considered a substitute to net income attributable to Boston Properties, Inc. common shareholders in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.  
Fixed Charge Coverage Ratio
Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDA re  – cash is a non-GAAP financial measure equal to BXP's Share of EBITDA re  after eliminating the effects of straight-line rent, fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements.  Total Fixed Charges  is also a non-GAAP financial measure equal to the sum of BXP’s Share of interest expense, capitalized interest, hedge amortization, maintenance capital expenditures, hotel improvements, equipment upgrades and replacements and preferred dividends/distributions. The Company believes that the presentation of its Fixed Charge Coverage Ratio provides investors with useful information about the Company’s financial performance as it relates to overall financial flexibility and balance sheet management, and, although the Company’s Fixed Charge Coverage Ratio is not a liquidity measure, as it does not include adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that its Fixed Charge Coverage Ratio provides investors with useful supplemental information regarding the Company’s ability to service its existing fixed charges. Furthermore, the Company believes that the Fixed Charge Coverage Ratio is frequently used by analysts, rating agencies and other interested parties in the evaluation of the Company’s performance as a REIT and, as a result, by presenting the Fixed Charge Coverage Ratio the Company assists these parties in their evaluations.  The Company’s calculation of its Fixed Charge Coverage Ratio may not be comparable to the ratios reported by other REITs or real estate companies that define the term differently and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.  
Funds Available for Distribution (FAD) and FAD Payout Ratio
In addition to FFO, the Company presents Funds Available for Distribution to common shareholders and common unitholders (FAD), which is a non-GAAP financial measure that is calculated by (1) adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (gains) from early extinguishments of debt, stock-based compensation expense, partners' share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences) and unearned portion of capitalized fees, (2) eliminating the effects of straight-line rent, straight-line ground rent expense adjustment, hedge amortization and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.'s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.  
FAD Payout Ratio is defined as distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD. 

52

 	 	

	Q4 2018	 	
 	Definitions (continued)	 	
Funds from Operations (FFO)
Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on the Company's balance sheet, impairment losses on its investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but the Company believes the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing the Company's operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company's real estate across reporting periods and to the operating performance of other companies.  
The Company's computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.  In order to facilitate a clear understanding of the Company's operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company's consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. 
In-Service Properties
The Company treats a property as being "in-service" upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire property should be treated as "in-service" involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics, the Company specifies a single date for treating a property as "in-service," which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In addition, under GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being "in-service," and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company's unconsolidated joint ventures.  
Interest Coverage Ratio
Interest Coverage Ratio, calculated including and excluding capitalized interest, is a non-GAAP financial measure equal to BXP's Share of EBITDA re – cash  divided by Adjusted interest expense. BXP's Share of EBITDA re  – cash is a non-GAAP financial measure equal to BXP's Share of EBITDA re  after eliminating the effects of straight-line rent, fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line ground rent expense, stock-based compensation expense and lease transaction costs that qualify as rent inducements. Adjusted interest expense excluding capitalized interest is equal to BXP's Share of interest expense less (1) BXP's Share of hedge amortization and (2) BXP's Share of amortization of financing costs. Adjusted interest expense including capitalized interest is calculated in the same manner but adds back BXP's Share of capitalized interest. The Company believes that the presentation of its Interest Coverage Ratio provides useful information about the Company’s financial condition because it provides investors additional information on the Company's ability to meet its debt obligations and incur additional indebtedness. In addition, by analyzing interest coverage ratios over a period of time, trends may emerge that provide investors a better sense of whether a company’s financial condition is improving or declining. The ratios may also be used to compare the financial condition of different companies, which can help when making an investment decision. The Company presents its Interest Coverage Ratio in two ways - including capitalized interest and excluding capitalized interest. GAAP requires the capitalization of interest expense during development. Therefore, for a company like Boston Properties, Inc. that is an active developer of real estate, presenting the Interest Coverage Ratio (excluding capitalized interest) provides an alternative measure of financial condition that may be more indicative of the Company’s ability to meet its interest expense obligations and therefore its overall financial condition. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.
Market Rents
Market Rents used by the Company in calculating Average Economic Occupancy are based on the current market rates set by the managers of the Company’s residential properties based on their experience in renting their residential property's units and publicly available market data. Trends in market rents for a region as reported by others could therefore vary materially. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.
Net Debt
Net Debt is equal to (A) the Company’s consolidated debt plus special dividends payable (if any) less (B) cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s). The Company believes that the presentation of Net Debt provides useful information to investors because the Company reviews Net Debt as part of the management of its overall financial flexibility, capital structure and leverage. In particular, Net Debt is an important component of the Company’s ratio of  BXP’s Share of Net Debt to BXP’s Share of EBITDA re .   BXP’s Share of Net Debt is calculated in a similar manner to Net Debt, except that BXP’s Share of Debt and BXP’s Share of cash are utilized instead of the Company’s consolidated debt and cash in the calculation. The Company believes BXP’s Share of Net Debt to BXP’s Share of EBITDA re  is useful to investors because it provides an alternative measure of the Company’s financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets. Furthermore, certain debt rating agencies, creditors and credit analysts monitor the Company’s Net Debt as part of their assessments of its business. The Company may utilize a considerable portion of its cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s) may not be solely controlled by the Company. The deduction of these items from consolidated debt in the calculation of Net Debt therefore should not be understood to mean that these items are available exclusively for debt reduction at any given time. 

53

 	 	

	Q4 2018	 	
 	Definitions (continued)	 	
Net Operating Income (NOI)
Net operating income (NOI) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus (1) preferred dividends, net income attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, impairment losses, depreciation and amortization expense and interest expense, less (2) development and management services revenue, direct reimbursements of payroll and related costs from management services contracts, income (loss) from unconsolidated joint ventures, gains on sales of real estate, interest and other income, gains (losses) from investments in securities and gains (losses) from early extinguishments of debt. In some cases, the Company also presents (1)  NOI – cash , which is NOI after eliminating the effects of straight-line rent, fair value lease revenue, straight-line ground rent expense adjustment and lease transaction costs that qualify as rent inducements in accordance with GAAP, (2)  NOI and NOI – cash, in each case excluding termination income .  
The Company uses these measures internally as performance measures and believes they provide useful information to investors regarding the Company’s results of operations and financial condition because, when compared across periods, they reflect the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. Presenting NOI – cash allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and ground rent expenses. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of the straight-lining of rent provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated at the property level on an unleveraged basis. Presenting NOI measures that exclude termination income provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.  
Rental Obligations
Rental Obligations is defined as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from tenants under existing leases. These amounts exclude rent abatements.  
Rental Revenue (excluding termination income)
Rental Revenue (excluding termination income) is used internally by the Company as a performance measure and provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.
Same Properties
In the Company's analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as "Same Properties." "Same Properties" therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as "in-service" for that property to be included in "Same Properties."  Pages 19 - 22 indicate by footnote the "In-Service Properties" that are not included in "Same Properties."

54

 	 	

	Q4 2018	 	
 	Reconciliations	 	

(unaudited and in thousands)
BXP's Share of select items	
 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	31-Dec-18	 	30-Sep-18	
Revenue	$	705,157	
 	 	$	686,284	
 	
Partners' share of revenue from consolidated joint ventures (JVs)	(75,050	)	 	(72,924	)	
BXP's share of revenue from unconsolidated JVs	39,680	
 	 	36,434	
 	
BXP's Share of revenue	$	669,787	
 	 	$	649,794	

Straight-line rent	$	1,830	
 	 	$	(848	)	
Partners' share of straight-line rent from consolidated JVs	(91	)	 	2,657	
 	
BXP's share of straight-line rent from unconsolidated JVs	3,748	
 	 	3,037	
 	
BXP's Share of straight-line rent	$	5,487	
 	 	$	4,846	

Fair value lease revenue 1	$	6,076	
 	 	$	6,053	
 	
Partners' share of fair value lease revenue from consolidated JVs 1	(1,917	)	 	(1,910	)	
BXP's share of fair value lease revenue from unconsolidated JVs 1	960	
 	 	864	
 	
BXP's Share of fair value lease revenue 1	$	5,119	
 	 	$	5,007	

Lease termination income	$	4,775	
 	 	$	1,350	
 	
Partners' share of termination income from consolidated JVs	(115	)	 	—	
 	
BXP's share of termination income from unconsolidated JVs	27	
 	 	—	
 	
BXP's Share of termination income	$	4,687	
 	 	$	1,350	

Non-cash termination income adjustment (fair value lease amounts)	$	—	
 	 	$	—	
 	
Partners' share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs	—	
 	 	—	
 	
BXP's share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs	—	
 	 	—	
 	
BXP's Share of non-cash termination income adjustment (fair value lease amounts)	$	—	
 	 	$	—	

Capitalized internal leasing and external legal costs	$	2,621	
 	 	$	1,901	
 	
Partners' share of capitalized internal leasing and external legal costs from consolidated JVs	(34	)	 	(224	)	
BXP's share of capitalized internal leasing and external legal costs from unconsolidated JVs	162	
 	 	179	
 	
BXP's Share of capitalized internal leasing and external legal costs	$	2,749	
 	 	$	1,856	

Hedge amortization	$	1,579	
 	 	$	1,579	
 	
Partners' share of hedge amortization from consolidated JVs	(144	)	 	(144	)	
BXP's share of hedge amortization from unconsolidated JVs	—	
 	 	—	
 	
BXP's Share of hedge amortization	$	1,435	
 	 	$	1,435	

Depreciation and amortization	$	165,439	
 	 	$	157,996	
 	
Noncontrolling interests in property partnerships' share of depreciation and amortization	(19,067	)	 	(18,166	)	
BXP's share of depreciation and amortization from unconsolidated JVs	17,576	
 	 	18,020	
 	
BXP's Share of depreciation and amortization	$	163,948	
 	 	$	157,850	

Lease transaction costs that qualify as rent inducements 2	$	3,989	
 	 	$	3,866	
 	
Partners' share of lease transaction costs that qualify as rent inducements from consolidated JVs  2	(170	)	 	(107	)	
BXP's share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 2	379	
 	 	87	
 	
BXP's Share of lease transaction costs that qualify as rent inducements 2	$	4,198	
 	 	$	3,846	

2nd generation tenant improvements and leasing commissions	$	65,012	
 	 	$	50,134	
 	
Partners' share of 2nd generation tenant improvements and leasing commissions from consolidated JVs	(7,756	)	 	(6,587	)	
BXP's share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs	3,156	
 	 	9,197	
 	
BXP's Share of 2nd generation tenant improvements and leasing commissions	$	60,412	
 	 	$	52,744	

55

 	 	

	Q4 2018	 	
 	Reconciliations (continued)	 	

BXP's Share of select items (continued)	
 	 	 	 	 	 	 	 	
 	Three Months Ended	
 	31-Dec-18	 	30-Sep-18	
Maintenance capital expenditures 3	$	16,440	
 	 	$	25,011	
 	
Partners' share of maintenance capital expenditures from consolidated JVs 3	(572	)	 	(73	)	
BXP's share of maintenance capital expenditures from unconsolidated JVs 3	919	
 	 	284	
 	
BXP's Share of maintenance capital expenditures 3	$	16,787	
 	 	$	25,222	

Interest expense	$	100,378	
 	 	$	95,366	
 	
Partners' share of interest expense from consolidated JVs	(10,901	)	 	(11,044	)	
BXP's share of interest expense from unconsolidated JVs	10,777	
 	 	9,360	
 	
BXP's Share of interest expense	$	100,254	
 	 	$	93,682	

Capitalized interest	$	14,172	
 	 	$	16,595	
 	
Partners' share of capitalized interest from consolidated JVs	(1,345	)	 	(1,219	)	
BXP's share of capitalized interest from unconsolidated JVs	1,685	
 	 	1,182	
 	
BXP's Share of capitalized interest	$	14,512	
 	 	$	16,558	

Amortization of financing costs	$	3,101	
 	 	$	3,062	
 	
Partners' share of amortization of financing costs from consolidated JVs	(382	)	 	(382	)	
BXP's share of amortization of financing costs from unconsolidated JVs	167	
 	 	153	
 	
BXP's Share of amortization of financing costs	$	2,886	
 	 	$	2,833	

_____________
 	 	
1 	Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.	
 	 	
2 	Consists 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.	
 	 	
3 	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.	

56

 	 	

	Q4 2018	 	
 	Reconciliations (continued)	 	

for the three months ended December 31, 2018 
(unaudited and dollars in thousands)

 	 	 	 	Norges Joint Ventures	 	 	 	 	 	
 	 	 	 	Times Square Tower	 	 	 	 	 	
 	 	 	601 Lexington Avenue /
One Five Nine East 53rd Street	 	 	 	 	
CONSOLIDATED JOINT VENTURES	 	767 Fifth Avenue	 	100 Federal Street	 	 	 	Total Consolidated	 	
 	 	(The GM Building)	 	Atlantic Wharf Office	 	Salesforce Tower	 	Joint Ventures	 	
Revenue	 	 	 	 	 	 	 	 	 	
Rent	 	$	57,262	
 	 	$	76,239	
 	 	$	20,035	
 	 	$	153,536	
 	 	
Straight-line rent	 	(1,502	)	 	2,279	
 	 	(6,689	)	 	(5,912	)	 	
Fair value lease revenue	 	4,509	
 	 	252	
 	 	—	
 	 	4,761	
 	 	
Termination income	 	275	
 	 	11	
 	 	—	
 	 	286	
 	 	
Base Rent	 	60,544	
 	
 	78,781	
 	
 	13,346	
 	
 	152,671	
 	 	
Recoveries from tenants	 	12,946	
 	 	16,829	
 	 	6,860	
 	 	36,635	
 	 	
Parking and other	 	732	
 	 	1,632	
 	 	345	
 	 	2,709	
 	 	
Total rental revenue	 	74,222	
 	 	97,242	
 	 	20,551	
 	 	192,015	
 	 	
Expenses	 	 	 	 	 	 	 	 	 	
Operating	 	28,867	
 	 	33,885	
 	 	8,973	
 	 	71,725	
 	 	
Net Operating Income (NOI)	 	45,355	
 	 	63,357	
 	 	11,578	
 	 	120,290	

Other income (expense)	 	 	 	 	 	 	 	 	 	
Development and management services revenue	 	525	
 	 	807	
 	 	27	
 	 	1,359	
 	 	
Interest and other income	 	635	
 	 	570	
 	 	152	
 	 	1,357	
 	 	
Interest expense	 	(20,533	)	 	(5,970	)	 	—	
 	 	(26,503	)	 	
Depreciation and amortization expense	 	(23,141	)	 	(21,309	)	 	(5,757	)	 	(50,207	)	 	
Total other income (expense)	 	(42,514	)	 	(25,902	)	 	(5,578	)	 	(73,994	)	 	
Net income	 	$	2,841	
 	 	$	37,455	
 	 	$	6,000	
 	 	$	46,296	

BXP's nominal ownership percentage	 	60.00%	 	55.00%	 	95.00%	 	 	 	
 	 	 	 	 	 	 	 	 	 	
Partners' share of NOI (after priority allocations)1	 	$	17,434	
 	 	$	27,689	
 	 	$	246	
 	 	$	45,369	
 	 	
BXP's share of NOI (after priority allocations)	 	$	27,921	
 	 	$	35,668	
 	 	$	11,332	
 	 	$	74,921	
 	 	
Unearned portion of capitalized fees 2	 	$	2,280	
 	 	$	1,951	
 	 	$	43	
 	 	$	4,274	

Partners' share of select items 1	 	 	 	 	 	 	 	 	 	
Partners' share hedge amortization	 	$	144	
 	 	$	—	
 	 	$	—	
 	 	$	144	
 	 	
Partners' share of amortization of financing costs	 	$	346	
 	 	$	36	
 	 	$	—	
 	 	$	382	
 	 	
Partners' share of capitalized interest	 	$	345	
 	 	$	1,000	
 	 	$	—	
 	 	$	1,345	
 	 	
Partners' share of lease transaction costs that qualify as rent inducements	 	$	—	
 	 	$	170	
 	 	$	—	
 	 	$	170	
 	 	
Partners' share of management and other fees	 	$	708	
 	 	$	843	
 	 	$	37	
 	 	$	1,588	
 	 	
Partners' share of basis differential and other adjustments	 	$	(16	)	 	$	16	
 	 	$	(28	)	 	$	(28	)	 	
Partners' share of priority allocations	 	$	—	
 	 	$	(21	)	 	$	326	
 	 	$	305	

Reconciliation of Partners' share of EBITDAre 1	 	 	 	 	 	 	 	 	 	
Partners' NCI	 	$	443	
 	 	$	16,017	
 	 	$	(35	)	 	$	16,425	
 	 	
Add:	 	

 	

 	 	

Partners' share of interest expense	 	8,214	
 	 	2,687	
 	 	—	
 	 	10,901	
 	 	
Partners' share of depreciation and amortization expense after BXP's basis differential	 	9,240	
 	 	9,567	
 	 	260	
 	 	19,067	
 	 	
Partners' share of EBITDAre	 	$	17,897	
 	 	$	28,271	
 	 	$	225	
 	 	$	46,393	

Reconciliation of Partners' share of Net Operating Income (Loss) (NOI)1	 	 	 	 	 	 	 	
Rental revenue	 	$	29,689	
 	 	$	43,759	
 	 	$	1,028	
 	 	$	74,476	
 	 	
Less: Termination income	 	110	
 	
 	5	
 	
 	—	
 	 	115	
 	 	
Rental revenue (excluding termination income)	 	29,579	
 	
 	43,754	
 	 	1,028	
 	 	74,361	
 	 	
Less: Operating expenses (including partners' share of management and other fees)	 	12,255	
 	 	16,091	
 	 	486	
 	 	28,832	
 	 	
Priority allocations	 	—	
 	 	(21	)	 	296	
 	 	275	
 	 	
NOI (excluding termination income and after priority allocations)	 	$	17,324	
 	 	$	27,684	
 	 	$	246	
 	 	$	45,254	

Rental revenue (excluding termination income)	 	$	29,579	
 	 	$	43,754	
 	 	$	1,028	
 	 	$	74,361	
 	 	
Less: Straight-line rent	 	(601	)	 	1,026	
 	 	(334	)	 	91	
 	 	
           Fair value lease revenue	 	1,804	
 	 	113	
 	 	—	
 	 	1,917	
 	 	
Add: Lease transaction costs that qualify as rent inducements	 	—	
 	 	170	
 	 	—	
 	 	170	
 	 	
Subtotal	 	28,376	
 	 	42,785	
 	 	1,362	
 	 	72,523	
 	 	
Less: Operating expenses (including partners' share of management and other fees)	 	12,255	
 	 	16,091	
 	 	486	
 	 	28,832	
 	 	
Priority allocations	 	—	
 	 	(21	)	 	296	
 	 	275	
 	 	
NOI - cash (excluding termination income and after priority allocations)	 	$	16,121	
 	 	$	26,715	
 	 	$	580	
 	 	$	43,416	

Reconciliation of Partners' share of Revenue 1	 	 	 	 	 	 	 	 	 	
Rental revenue	 	$	29,689	
 	 	$	43,759	
 	 	$	1,028	
 	 	$	74,476	
 	 	
Add: Development and management services revenue	 	210	
 	
 	363	
 	
 	1	
 	 	574	
 	 	
Revenue	 	$	29,899	
 	
 	$	44,122	
 	
 	$	1,029	
 	
 	$	75,050	
 	 	
_________
 	 	
1 	Amounts represent the partners' share based on their respective ownership percentage.	
 	 	
2 	Capitalized fees are eliminated in consolidation and recognized over the life of the asset as depreciation and amortization are added back to the Company's net income.	

57

 	 	

	Q4 2018	 	
 	Reconciliations (continued)	 	

for the three months ended December 31, 2018 
(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	540 Madison Avenue	 	Market Square North	 	Metropolitan Square	 	901 New York Avenue	 	Annapolis Junction  1	 	500 North Capitol Street, N.W.	 	Colorado Center	 	Santa Monica Business Park	 	Other Joint Ventures  2	 	Total Unconsolidated Joint Ventures	
Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	 	$	5,353	
 	 	$	4,168	
 	 	$	5,793	
 	 	$	7,017	
 	 	$	2,797	
 	 	$	2,923	
 	 	$	14,894	
 	 	$	12,845	
 	 	$	1,086	
 	 	$	56,876	
 	
Straight-line rent	 	220	
 	 	469	
 	 	16	
 	 	211	
 	 	50	
 	 	(56	)	 	2,865	
 	 	1,830	
 	 	574	
 	 	6,179	
 	
Fair value lease revenue	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	96	
 	 	912	
 	 	—	
 	 	1,008	
 	
Termination income	 	3	
 	 	—	
 	 	—	
 	 	50	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	53	
 	
Base rent	 	5,576	
 	 	4,637	
 	 	5,809	
 	 	7,278	
 	 	2,847	
 	 	2,867	
 	 	17,855	
 	 	15,587	
 	 	1,660	
 	 	64,116	
 	
Recoveries from tenants	 	534	
 	 	986	
 	 	1,245	
 	 	1,271	
 	 	523	
 	 	1,519	
 	 	592	
 	 	2,089	
 	 	701	
 	 	9,460	
 	
Parking and other	 	39	
 	 	191	
 	 	709	
 	 	445	
 	 	55	
 	 	127	
 	 	3,001	
 	 	1,791	
 	 	1,113	
 	 	7,471	
 	
Total rental revenue	 	6,149	
 	 	5,814	
 	 	7,763	
 	 	8,994	
 	 	3,425	
 	 	4,513	
 	 	21,448	
 	 	19,467	
 	 	3,474	
 	 	81,047	
 	
Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	 	3,606	
 	 	2,520	
 	 	3,874	
 	 	3,573	
 	 	1,684	
 	 	1,802	
 	 	5,423	
 	 	7,521	
 	 	1,377	
 	 	31,380	
 	
Net operating income/(loss)	 	2,543	
 	 	3,294	
 	 	3,889	
 	 	5,421	
 	 	1,741	
 	 	2,711	
 	 	16,025	
 	 	11,946	
 	 	2,097	
 	 	49,667	

Other income/(expense)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Development and management services revenue	 	107	
 	 	2	
 	 	1	
 	 	—	
 	 	—	
 	 	—	
 	 	6	
 	 	8	
 	 	2	
 	 	126	
 	
Interest and other income	 	82	
 	 	81	
 	 	2	
 	 	125	
 	 	95	
 	 	18	
 	 	190	
 	 	—	
 	 	428	
 	 	1,021	
 	
Interest expense	 	(1,099	)	 	(1,463	)	 	(2,155	)	 	(2,075	)	 	(1,399	)	 	(1,128	)	 	(5,033	)	 	(7,589	)	 	(375	)	 	(22,316	)	
Depreciation and amortization expense	 	(1,962	)	 	(1,061	)	 	(5,827	)	 	(1,523	)	 	(1,011	)	 	(944	)	 	(4,924	)	 	(9,807	)	 	(1,774	)	 	(28,833	)	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	16,959	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	16,959	
 	
Total other income/(expense)	 	(2,872	)	 	(2,441	)	 	(7,979	)	 	(3,473	)	 	14,644	
 	 	(2,054	)	 	(9,761	)	 	(17,388	)	 	(1,719	)	 	(33,043	)	
Net income/(loss)	 	$	(329	)	 	$	853	
 	 	$	(4,090	)	 	$	1,948	
 	 	$	16,385	
 	 	$	657	
 	 	$	6,264	
 	 	$	(5,442	)	 	$	378	
 	 	$	16,624	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's nominal ownership percentage	 	60	%	 	50	%	 	20	%	 	25	%	 	50	%	 	30	%	 	50	%	 	55	%	 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of select items	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of amortization of financing costs	 	$	20	
 	 	$	10	
 	 	$	5	
 	 	$	22	
 	3 	$	18	
 	 	$	4	
 	 	$	13	
 	 	$	72	
 	 	$	3	
 	 	$	167	
 	
BXP's share of capitalized interest	 	$	—	
 	 	$	—	
 	 	$	37	
 	 	$	—	
 	3 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	1,648	
 	 	$	1,685	
 	
BXP's share of non-cash termination income adjustment (fair value lease amounts)	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	3 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	
 	 	$	—	

Reconciliation of BXP's share of EBITDA re	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income/(loss) from unconsolidated joint ventures	 	$	(33	)	 	$	382	
 	 	$	(871	)	 	$	(1,224	)	3 	$	7,947	
 	 	$	197	
 	 	$	1,644	
 	 	$	(2,993	)	 	$	256	
 	 	$	5,305	
 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of interest expense	 	659	
 	 	732	
 	 	431	
 	 	1,038	
 	 	700	
 	 	338	
 	 	2,517	
 	 	4,174	
 	 	188	
 	 	10,777	
 	
BXP's share of depreciation and amortization expense	 	1,013	
 	 	576	
 	 	1,218	
 	 	2,979	
 	3 	541	
 	 	283	
 	 	4,897	
 	4 	5,394	
 	 	675	
 	 	17,576	
 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of gain on distribution of real estate	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	8,270	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	8,270	
 	
BXP's share of EBITDA re	 	$	1,639	
 	 	$	1,690	
 	 	$	778	
 	 	$	2,793	
 	 	$	918	
 	 	$	818	
 	 	$	9,058	
 	 	$	6,575	
 	 	$	1,119	
 	 	$	25,388	

58

 	 	

	Q4 2018	 	
 	Reconciliations (continued)	 	

 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
UNCONSOLIDATED JOINT VENTURES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of BXP's share of Net Operating Income/(Loss)	 	540 Madison Avenue	 	Market Square North	 	Metropolitan Square	 	901 New York Avenue	 	Annapolis Junction  1	 	500 North Capitol Street, N.W.	 	Colorado Center	 	Santa Monica Business Park	 	Other Joint Ventures  2	 	Total Unconsolidated Joint Ventures	
BXP's share of rental revenue	 	$	3,689	
 	 	$	2,907	
 	 	$	1,553	
 	 	$	4,497	
 	3 	$	1,713	
 	 	$	1,354	
 	 	$	11,671	
 	4 	$	10,707	
 	 	$	1,516	
 	 	$	39,607	
 	
BXP's share of operating expenses	 	2,164	
 	 	1,260	
 	 	775	
 	 	1,787	
 	3 	842	
 	 	541	
 	 	2,712	
 	 	4,137	
 	 	575	
 	 	14,793	
 	
BXP's share of net operating income/(loss)	 	1,525	
 	 	1,647	
 	 	778	
 	 	2,710	
 	3 	871	
 	 	813	
 	 	8,959	
 	 	6,570	
 	 	941	
 	 	24,814	
 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of termination income	 	2	
 	 	—	
 	 	—	
 	 	25	
 	3 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	27	
 	
BXP's share of net operating income/(loss) (excluding termination income)	 	1,523	
 	 	1,647	
 	 	778	
 	 	2,685	
 	3 	871	
 	 	813	
 	 	8,959	
 	 	6,570	
 	 	941	
 	 	24,787	
 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of straight-line rent	 	132	
 	 	235	
 	 	3	
 	 	106	
 	3 	25	
 	 	(17	)	 	1,970	
 	4 	1,007	
 	 	287	
 	 	3,748	
 	
BXP's share of fair value lease revenue	 	—	
 	 	—	
 	 	—	
 	 	—	
 	3 	—	
 	 	—	
 	 	458	
 	4 	502	
 	 	—	
 	 	960	
 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of lease transaction costs that qualify as rent inducements	 	—	
 	 	182	
 	 	10	
 	 	—	
 	3 	—	
 	 	—	
 	 	161	
 	 	26	
 	 	—	
 	 	379	
 	
BXP's share of net operating income/(loss) - cash (excluding termination income)	 	$	1,391	
 	 	$	1,594	
 	 	$	785	
 	 	$	2,579	
 	3 	$	846	
 	 	$	830	
 	 	$	6,692	
 	 	$	5,087	
 	 	$	654	
 	 	$	20,458	

Reconciliation of BXP's share of Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of rental revenue	 	$	3,689	
 	 	$	2,907	
 	 	$	1,553	
 	 	$	4,497	
 	3 	$	1,713	
 	 	$	1,354	
 	 	$	11,671	
 	4 	$	10,707	
 	 	$	1,516	
 	 	$	39,607	
 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP's share of development and management services revenue	 	64	
 	 	1	
 	 	—	
 	 	—	
 	 	—	
 	 	—	
 	 	3	
 	 	4	
 	 	1	
 	 	73	
 	
BXP's share of revenue	 	$	3,753	
 	 	$	2,908	
 	 	$	1,553	
 	 	$	4,497	
 	3 	$	1,713	
 	 	$	1,354	
 	 	$	11,674	
 	 	$	10,711	
 	 	$	1,517	
 	 	$	39,680	

 	

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

_____________
 	 	
1 	Annapolis Junction includes four in-service properties and two undeveloped land parcels. On December 31, 2018 the Company and its partner in the joint venture entered into a distribution agreement whereby the joint venture distributed one of the four in-service properties to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. Mortgage indebtedness at the time of the distribution totaled $45.4 million including accrued interest. The gain on distribution of real estate is included within income from unconsolidated joint ventures in the Company's consolidated statements of operations.	
 	 	
2 	Includes The Hub on Causeway, 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility and 3 Hudson Boulevard.   	
 	 	
3 	Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.	
 	 	
4 	The Company's purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this venture.	

59

 	 	

	Q4 2018	 	
 	Consolidated Income Statement - prior year	 	

(unaudited and in thousands, except per share amounts)

 	 	 	 	 	
 	 	Three Months Ended	
 	 	31-Dec-17	
Revenue	 	 	
Rental	 	 	
Base rent	 	$	511,995	
 	
Recoveries from tenants	 	94,697	
 	
Parking and other	 	26,836	
 	
Total rental revenue	 	633,528	
 	
Hotel revenue	 	11,744	
 	
Development and management services	 	9,957	
 	
Total revenue	 	655,229	
 	
Expenses	 	 	
Operating	 	 	
Rental	 	233,895	
 	
Hotel	 	8,117	
 	
General and administrative	 	29,396	
 	
Transaction costs	 	96	
 	
Depreciation and amortization	 	154,259	
 	
Total expenses	 	425,763	
 	
Operating income	 	229,466	
 	
Other income (expense)	 	 	
Income from unconsolidated joint ventures	 	4,197	
 	
Gains on sales of real estate	 	872	
 	
Interest and other income	 	2,336	
 	
Gains from investments in securities	 	962	
 	
Losses from early extinguishments of debt	 	(13,858	)	
Interest expense	 	(91,772	)	
Net income	 	132,203	
 	
Net income attributable to noncontrolling interests	 	 	
Noncontrolling interest in property partnerships	 	(13,865	)	
Noncontrolling interest - common units of the Operating Partnership	 	(11,884	)	
Net income attributable to Boston Properties, Inc.	 	106,454	
 	
Preferred dividends	 	(2,625	)	
Net income attributable to Boston Properties, Inc. common shareholders	 	$	103,829	

 	 	 	
INCOME PER SHARE OF COMMON STOCK (EPS)	 	 	
 	 	 	
Net income attributable to Boston Properties, Inc. per share - basic	 	$	0.67	
 	
Net income attributable to Boston Properties, Inc. per share - diluted	 	$	0.67	

60

Exhibit 99.2

BOSTON PROPERTIES ANNOUNCES FOURTH QUARTER 2018 RESULTS; REPORTS EPS OF $0.96 and FFO PER SHARE OF $1.59 

Updates FY 2019 EPS and Increases FY 2019 FFO Guidance
    
BOSTON, MA, January 29, 2019-Boston Properties, Inc. (NYSE: BXP), one of the largest publicly-traded developers, owners and managers of Class A office properties in the United States, reported results today for the fourth quarter ended December 31, 2018.
Financial highlights for the fourth quarter include:
 	 	
•	Net income attributable to common shareholders of $148.5 million, or $0.96 per diluted share (EPS), growth of 43% compared to $103.8 million, or $0.67 per diluted share, for the quarter ended December 31, 2017, primarily due to asset sales during the fourth quarter of 2018.	
 	 	
•	Funds from Operations (FFO) of $245.7 million, or $1.59 per diluted share. This reflects FFO growth of 7% compared to FFO of $230.1 million, or $1.49 per diluted share, for the quarter ended December 31, 2017, primarily due to higher revenue.	
 	 	
◦	FFO of $1.59 per diluted share was equal to the mid-point of the Company's fourth quarter guidance provided on October 30, as updated on December 11, 2018, when the Company announced the $0.10 per diluted share loss from early extinguishment of debt related to the early redemption of $700.0 million of 5.875% senior notes due 2019.	
The Company provided guidance for first quarter 2019 with projected EPS of $0.66 - $0.68 per diluted share and projected FFO of $1.66 - $1.68 per diluted share.
The Company also reduced its full year 2019 EPS guidance by $0.05 at the midpoint and increased its full year 2019 FFO guidance by $0.11 at the midpoint compared to guidance provided on October 30, 2018.
The Company's updated guidance for FY 2019 is:
 	 	
◦	Projected EPS for 2019 of $3.05 - $3.17 per diluted share, which would reflect a decrease in EPS of $0.59 at the midpoint compared to FY 2018. FY 2018 included a $0.99 per diluted share gain related to asset sales which is not projected in FY 2019 guidance.	
 	 	
◦	Projected FFO for 2019 of $6.88 - $7.00 per diluted share, which would reflect FFO growth of 10% at the midpoint as compared to FY 2018.	

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Financial results for the year ended December 31, 2018 include:
 	 	
•	Net income attributable to common shareholders of $572.3 million, or $3.70 per diluted share (EPS), compared to $451.9 million, or $2.93 per diluted share, for FY 2017.	
 	 	
•	FFO of $974.5 million, or $6.30 per diluted share, compared to FFO of $959.4 million, or $6.22 per diluted share, for the year ended December 31, 2017. FFO of $6.30 per diluted share was equal to the mid-point of the Company's FY 2018 guidance provided on October 30, as updated on December 11, 2018, when the Company announced the $0.10 per diluted share loss from early extinguishment of debt related to the early redemption of $700.0 million of 5.875% senior notes due 2019.	
Full Year 2018 business highlights include:
 	 	
•	Delivered and placed in-service 2.3 million square feet (sf) of new developments representing $1.5 billion of investment, including Salesforce Tower in San Francisco, California, Proto Kendall Square in Cambridge, Massachusetts; Signature at Reston in Reston, Virginia and 191 Spring Street in Lexington, Massachusetts. The commercial developments are 100% leased.	
 	 	
•	Continued 5.3 million square feet of additional developments, representing a total estimated investment of $2.7 billion. The commercial developments are 78% pre-leased.	
 	 	
•	Acquired Santa Monica Business Park, a 1.2 million square foot office park located in Santa Monica, California in a joint venture; and entered into a joint venture to acquire a development site at 3 Hudson Boulevard in New York, New York that can accommodate up to 2.0 million square feet of future development.	
 	 	
•	Signed leases for 7.2 million square feet during the year, marking one of the strongest leasing years in the Company’s history.	
 	 	
•	Increased portfolio occupancy 70 bps year-over-year to 91.4% for the Company’s in-service office properties.	
 	 	
•	Increased the regular quarterly dividend 18.75% to $0.95 per share of common stock in the third quarter, representing the largest quarterly dividend increase in the Company's history.	
 	 	
•	Ranked in the top quadrant of the 2018 Global Real Estate Sustainability Benchmark (GRESB®) assessment, earning a seventh consecutive “Green Star” recognition and the highest GRESB 5-star Rating.  Also in 2018, the Company signed a renewable energy agreement for the power consumption at 33 properties totaling 15 million square feet, which will reduce the carbon emissions from the Company’s Massachusetts operations by 78%.   	
Fourth quarter and recent business highlights include:
 	 	
•	Entered into an agreement with an affiliate of TMG Partners (“TMG”) to develop Platform 16, an urban campus in downtown San Jose, California, which is located within walking distance of the Diridon Station, San Jose’s intermodal transportation hub and adjacent to Google’s planned eight million square foot transit village. Starting in January 2019, the Company is making ground rent payments to TMG through February, 2020 totaling $5.5 million. In February 2020, the Company will have an option for 12-months to acquire the land at a fixed price.	

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•	Signed three long-term leases at its 399 Park Avenue property located in midtown New York City, totaling approximately 550,000 sf, which brings the property to approximately 93% leased.	
 	 	
•	Completed a $1.0 billion green bond offering of 4.500% unsecured senior notes due 2028 and utilized $700 million of the proceeds to redeem its 5.875% senior notes due in 2019.	
Other events during the fourth quarter include:
Development Activities
 	 	
•	Completed and fully placed in-service Salesforce Tower, its 1.4 million square foot Class A office project in San Francisco, California on December 1, 2018. The property is 100% leased.	
 	 	
•	Completed and fully placed in-service 191 Spring Street, its 171,000 square foot Class A office redevelopment project in Lexington, Massachusetts on November 9, 2018. The property is 100% leased.	
Acquisition and Disposition Activities
 	 	
•	Entered into a distribution agreement on December 31, 2018 with its partner in a joint venture in which the Company has a 50% interest, whereby the joint venture distributed its Annapolis Junction Building One, a 118,000 sf property, to the partner including the assumption by the partner of the mortgage indebtedness collateralized by the property. The Company recognized a gain on sale of real estate totaling approximately $8.3 million.	
 	 	
•	Completed the sale of a 41.0-acre parcel of land at its Tower Oaks property in Rockville, Maryland for a gross sale price of approximately $46.0 million. Net cash proceeds totaled approximately $25.9 million, resulting in a gain on sale of real estate totaling approximately $15.7 million. The Company has agreed to provide seller financing to the buyer totaling $19.5 million, which matures on December 20, 2021.	
 	 	
•	Completed the sale of 6595 Springfield Center Drive (TSA Headquarters), a 634,000 sf development project in Springfield, Virginia on December 13, 2018, for a sale price of approximately $98.1 million, consisting of the land and project costs incurred to date. Concurrently with the sale, the Company agreed to act as development manager and has guaranteed the completion of the project. The company will earn a development fee, guarantee fees and a tenant improvement management fee and has the right to collect any contingency funds that are included but not used in the construction of the project. The estimated total project costs including the land are approximately $313.7 million. Because the carrying value of the property exceeded the estimated net sales price, the Company recognized an impairment loss totaling approximately $8.7 million in the fourth quarter 2018.	
 	 	
•	Completed the sale of 1333 New Hampshire Avenue, a 315,000 square foot property in Washington, DC on November 30, 2018, for a gross sale price of approximately $142.0 million, including the retention of a $5.5 million payment by the anchor tenant due in January 2020. Net cash proceeds totaled approximately $133.7 million, resulting in a gain on sale of real estate totaling approximately $44.4 million.	

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Capital Markets Activities
 	 	
•	A joint venture in which the Company has a 50% interest extended the loan collateralized by its Annapolis Junction Building Six property. At the time of the extension, the outstanding balance of the loan totaled approximately $13.1 million and was scheduled to mature on November 17, 2018. The extended loan has a total commitment amount of approximately $14.3 million, bears interest at a variable rate equal to LIBOR plus 2.00% per annum and is scheduled to mature on November 17, 2020.	
Transactions completed subsequent to December 31, 2018:
 	 	
•	Completed the sale of 2600 Tower Oaks Boulevard, a 179,000 sf property in Rockville, Maryland on January 24, 2019 for a gross sales price of approximately $22.7 million. The Company recognized an impairment loss totaling approximately $3.1 million during the fourth quarter 2018 as a result of the carrying value of the property exceeding its fair value.	
 	 	
•	Amended the venture agreement the Company has with its partner in the consolidated entity that owns Salesforce Tower on January 18, 2019. Under the amendment, the partner exercised its right to cause the Company to purchase the partner's promoted profits interest in Salesforce Tower for cash totaling approximately $187 million net of the repayment of the Company's preferred equity. As part of the original agreement the partner was required to contribute 5% of the equity and was entitled to receive an additional promoted payment based on the success of the property.	
 	 	
•	Exercised its right to acquire land parcels at Carnegie Center in Princeton, New Jersey on January 10, 2019, for a purchase price of approximately $42.9 million. The seller will be entitled to receive additional payments in the future aggregating approximately $8.6 million, which are contingent on the development of each of the parcels. The land parcels could support approximately 1.7 million sf of development.	
The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter and year ended December 31, 2018. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.
EPS and FFO per Share Guidance:
The Company’s guidance for the first quarter and full year 2019 for EPS (diluted) and FFO per share (diluted) 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 and the earnings impact of the events referenced in this release and otherwise referenced during the conference call and in the Company’s Supplemental Operating and Financial Data for the quarter ended December 31, 2018. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, other possible capital markets activity or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related

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depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below. For details of the Company's assumptions related to guidance for the first quarter and full year 2019 for EPS (diluted) and FFO per share (diluted), please see the Fourth Quarter 2018 Supplemental Operating and Financial Data located on the Investor Relations section of the Company's website at www.bostonproperties.com.
As set forth below, the Company has updated its projected EPS (diluted) for the full year 2019 to $3.05 - $3.17 per share from $3.07 - $3.24 per share. This is a decrease of approximately $0.05 per share at the mid-point of the Company’s guidance provided on October 30 due to $0.06 per share greater than expected portfolio performance and fee income and $0.05 per share lower than expected interest expense, offset by $0.16 per share increased depreciation expense resulting from placing new developments in service and accelerated depreciation from the demolition of a recently-entitled new development project.
In addition, the Company has updated its projected guidance range for FFO per diluted share for the full year 2019 to $6.88 - $7.00 per share from $6.75 - $6.92 per share. This is an increase of approximately $0.11 per share at the mid-point of the Company’s guidance provided on October 30 and results from $0.06 per share greater than expected portfolio performance and fee income and $0.05 per share lower than expected interest expense.

 	First Quarter 2019	 	Full Year 2019	
 	Low	
 	-	High	
 	 	Low	
 	-	High	
 	
Projected EPS (diluted)	$	0.66	
 	-	$	0.68	
 	 	$	3.05	
 	-	$	3.17	
 	
Add:	 	 	 	 	 	 	 	
Projected Company Share of Real Estate Depreciation and Amortization	1.00	
 	-	1.00	
 	 	3.83	
 	-	3.83	
 	
Less:	 	 	 	 	 	 	 	
Projected Company Share of Gains on Sales of Real Estate	—	
 	-	—	
 	 	—	
 	-	—	
 	
Projected FFO per Share (diluted)	$	1.66	
 	-
	$	1.68	
 	 	$	6.88	
 	-
	$	7.00	
 	
% Growth in FFO as compared to FY 2018	 	 	 	 	9.2	%	 	11.1	%	
Boston Properties will host a conference call on Wednesday, January 30, 2019 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2018 results, the 2019 projections and related assumptions, and other matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 706-4503 (Domestic) or (281) 913-8731 (International) and entering the passcode 8999307. A replay of the conference call will be available through February 13, 2019, by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 8999307. There will also be a live audio webcast of the call which may be accessed on the Company’s website atwww.bostonproperties.com in the Investor Relations section. Shortly after the call a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

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Additionally, a copy of Boston Properties’ fourth quarter 2018 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website atwww.bostonproperties.com.

Boston Properties (NYSE: BXP) is one of the largest publicly-held developers and owners of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.6 million square feet and 197 properties, including eleven properties under construction.
This press release contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the Company’s ability to satisfy the closing conditions to the pending transactions described above, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement, including its guidance for the first quarter and full fiscal year 2019, whether as a result of new information, future events or otherwise.

Financial tables follow.

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BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)

 	December 31, 2018	 	December 31, 2017	
 	(in thousands, except for share and par value amounts)	
ASSETS	 	 	 	
Real estate, at cost	$	20,870,602	
 	 	$	19,622,379	
 	
Construction in progress	578,796	
 	 	1,269,338	
 	
Land held for future development	200,498	
 	 	204,925	
 	
Less: accumulated depreciation	(4,897,777	)	 	(4,589,634	)	
Total real estate	16,752,119	
 	 	16,507,008	
 	
Cash and cash equivalents	543,359	
 	 	434,767	
 	
Cash held in escrows	95,832	
 	 	70,602	
 	
Investments in securities	28,198	
 	 	29,161	
 	
Tenant and other receivables, net	86,629	
 	 	92,186	
 	
Related party note receivable	80,000	
 	 	—	
 	
Note receivable	19,468	
 	 	—	
 	
Accrued rental income, net	934,896	
 	 	861,575	
 	
Deferred charges, net	678,724	
 	 	679,038	
 	
Prepaid expenses and other assets	80,943	
 	 	77,971	
 	
Investments in unconsolidated joint ventures	956,309	
 	 	619,925	
 	
Total assets	$	20,256,477	
 	 	$	19,372,233	
 	
LIABILITIES AND EQUITY	 	 	 	
Liabilities:	 	 	 	
Mortgage notes payable, net	$	2,964,572	
 	 	$	2,979,281	
 	
Unsecured senior notes, net	7,544,697	
 	 	7,247,330	
 	
Unsecured line of credit	—	
 	 	45,000	
 	
Unsecured term loan, net	498,488	
 	 	—	
 	
Accounts payable and accrued expenses	276,645	
 	 	331,500	
 	
Dividends and distributions payable	165,114	
 	 	139,040	
 	
Accrued interest payable	89,267	
 	 	83,646	
 	
Other liabilities	503,726	
 	 	443,980	
 	
Total liabilities	12,042,509	
 	 	11,269,777	

Commitments and contingencies	—	
 	 	—	
 	
Equity:	 	 	 	
Stockholders’ equity attributable to Boston Properties, Inc.:	 	 	 	
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding	—	
 	 	—	
 	
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2018 and December 31, 2017	200,000	
 	 	200,000	
 	
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,537,378 and 154,404,186 issued and 154,458,478 and 154,325,286 outstanding at December 31, 2018 and December 31, 2017, respectively	1,545	
 	 	1,543	
 	
Additional paid-in capital	6,407,623	
 	 	6,377,908	
 	
Dividends in excess of earnings	(675,534	)	 	(712,343	)	
Treasury common stock at cost, 78,900 shares at December 31, 2018 and December 31, 2017	(2,722	)	 	(2,722	)	
Accumulated other comprehensive loss	(47,741	)	 	(50,429	)	
Total stockholders’ equity attributable to Boston Properties, Inc.	5,883,171	
 	 	5,813,957	
 	
Noncontrolling interests:	 	 	 	
Common units of the Operating Partnership	619,352	
 	 	604,739	
 	
Property partnerships	1,711,445	
 	 	1,683,760	
 	
Total equity	8,213,968	
 	 	8,102,456	
 	
Total liabilities and equity	$	20,256,477	
 	 	$	19,372,233	

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BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)

 	Three months ended December 31,	 	Year ended December 31,	
 	2018	 	2017	 	2018	 	2017	
 	(in thousands, except for per share amounts)	
Revenue	 	 	 	 	 	 	 	
Rental	 	 	 	 	 	 	 	
Base rent	$	541,902	
 	 	$	511,995	
 	 	$	2,103,723	
 	 	$	2,049,368	
 	
Recoveries from tenants	109,265	
 	 	94,697	
 	 	402,066	
 	 	367,500	
 	
Parking and other	27,831	
 	 	26,836	
 	 	107,421	
 	 	105,000	
 	
Total rental revenue	678,998	
 	 	633,528	
 	 	2,613,210	
 	 	2,521,868	
 	
Hotel revenue	11,745	
 	 	11,744	
 	 	49,118	
 	 	45,603	
 	
Development and management services	12,195	
 	 	9,957	
 	 	45,158	
 	 	34,605	
 	
Direct reimbursements of payroll and related costs from management services contracts	2,219	
 	 	—	
 	 	9,590	
 	 	—	
 	
Total revenue	705,157	
 	 	655,229	
 	 	2,717,076	
 	 	2,602,076	
 	
Expenses	 	 	 	 	 	 	 	
Operating	 	 	 	 	 	 	 	
Rental	253,043	
 	 	233,895	
 	 	979,151	
 	 	929,977	
 	
Hotel	8,221	
 	 	8,117	
 	 	33,863	
 	 	32,059	
 	
General and administrative	27,683	
 	 	29,396	
 	 	121,722	
 	 	113,715	
 	
Payroll and related costs from management services contracts	2,219	
 	 	—	
 	 	9,590	
 	 	—	
 	
Transaction costs	195	
 	 	96	
 	 	1,604	
 	 	668	
 	
Impairment losses	11,812	
 	 	—	
 	 	11,812	
 	 	—	
 	
Depreciation and amortization	165,439	
 	 	154,259	
 	 	645,649	
 	 	617,547	
 	
Total expenses	468,612	
 	 	425,763	
 	 	1,803,391	
 	 	1,693,966	
 	
Operating income	236,545	
 	 	229,466	
 	 	913,685	
 	 	908,110	
 	
Other income (expense)	 	 	 	 	 	 	 	
Income from unconsolidated joint ventures	5,305	
 	 	4,197	
 	 	2,222	
 	 	11,232	
 	
Gains on sales of real estate	59,804	
 	 	872	
 	 	182,356	
 	 	7,663	
 	
Interest and other income	3,774	
 	 	2,336	
 	 	10,823	
 	 	5,783	
 	
(Losses) gains from investments in securities	(3,319	)	 	962	
 	 	(1,865	)	 	3,678	
 	
(Losses) gains from early extinguishments of debt	(16,490	)	 	(13,858	)	 	(16,490	)	 	496	
 	
Interest expense	(100,378	)	 	(91,772	)	 	(378,168	)	 	(374,481	)	
Net income	185,241	
 	 	132,203	
 	 	712,563	
 	 	562,481	
 	
Net income attributable to noncontrolling interests	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	(16,425	)	 	(13,865	)	 	(62,909	)	 	(47,832	)	
Noncontrolling interest—common units of the Operating Partnership	(17,662	)	 	(11,884	)	 	(66,807	)	 	(52,210	)	
Net income attributable to Boston Properties, Inc.	151,154	
 	 	106,454	
 	 	582,847	
 	 	462,439	
 	
Preferred dividends	(2,625	)	 	(2,625	)	 	(10,500	)	 	(10,500	)	
Net income attributable to Boston Properties, Inc. common shareholders	$	148,529	
 	 	$	103,829	
 	 	$	572,347	
 	 	$	451,939	
 	
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:	 	 	 	 	 	 	 	
Net income	$	0.96	
 	 	$	0.67	
 	 	$	3.71	
 	 	$	2.93	
 	
Weighted average number of common shares outstanding	154,467	
 	 	154,362	
 	 	154,427	
 	 	154,190	
 	
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:	 	 	 	 	 	 	 	
Net income	$	0.96	
 	 	$	0.67	
 	 	$	3.70	
 	 	$	2.93	
 	
Weighted average number of common and common equivalent shares outstanding	154,773	
 	 	154,526	
 	 	154,682	
 	 	154,390	

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BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)

 	Three months ended December 31,	 	Year ended December 31,	
 	2018	 	2017	 	2018	 	2017	
 	(in thousands, except for per share amounts)	
 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. common shareholders	$	148,529	
 	 	$	103,829	
 	 	$	572,347	
 	 	$	451,939	
 	
Add:	 	 	 	 	 	 	 	
Preferred dividends	2,625	
 	 	2,625	
 	 	10,500	
 	 	10,500	
 	
Noncontrolling interest - common units of the Operating Partnership	17,662	
 	 	11,884	
 	 	66,807	
 	 	52,210	
 	
Noncontrolling interests in property partnerships	16,425	
 	 	13,865	
 	 	62,909	
 	 	47,832	
 	
Net income	185,241	
 	 	132,203	
 	 	712,563	
 	 	562,481	
 	
Add:	 	 	 	 	 	 	 	
Depreciation and amortization expense	165,439	
 	 	154,259	
 	 	645,649	
 	 	617,547	
 	
Noncontrolling interests in property partnerships' share of depreciation and amortization	(19,067	)	 	(18,896	)	 	(73,880	)	 	(78,190	)	
Company's share of depreciation and amortization from unconsolidated joint ventures	17,576	
 	 	6,310	
 	 	54,352	
 	 	34,262	
 	
Corporate-related depreciation and amortization	(398	)	 	(541	)	 	(1,634	)	 	(1,986	)	
Impairment losses	11,812	
 	 	—	
 	 	11,812	
 	 	—	
 	
Less:	 	 	 	 	 	 	 	
Gains on sales of real estate	59,804	
 	 	872	
 	 	182,356	
 	 	7,663	
 	
Gain on sale of real estate included within income from unconsolidated joint ventures	8,270	
 	 	—	
 	 	8,270	
 	 	—	
 	
Noncontrolling interests in property partnerships	16,425	
 	 	13,865	
 	 	62,909	
 	 	47,832	
 	
Preferred dividends	2,625	
 	 	2,625	
 	 	10,500	
 	 	10,500	
 	
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.)	273,479	
 	 	255,973	
 	 	1,084,827	
 	 	1,068,119	
 	
Less:	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations	27,789	
 	 	25,841	
 	 	110,338	
 	 	108,707	
 	
Funds from operations attributable to Boston Properties, Inc. common shareholders	$	245,690	
 	 	$	230,132	
 	 	$	974,489	
 	 	$	959,412	
 	
Boston Properties, Inc.’s percentage share of funds from operations - basic	89.84	%	 	89.90	%	 	89.83	%	 	89.82	%	
Weighted average shares outstanding - basic	154,467	
 	 	154,362	
 	 	154,427	
 	 	154,190	
 	
FFO per share basic	$	1.59	
 	 	$	1.49	
 	 	$	6.31	
 	 	$	6.22	
 	
Weighted average shares outstanding - diluted	154,773	
 	 	154,526	
 	 	154,682	
 	 	154,390	
 	
FFO per share diluted	$	1.59	
 	 	$	1.49	
 	 	$	6.30	
 	 	$	6.22	

–more–

 	 	
(1)	Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company ’ s real estate across reporting periods and to the operating performance of other companies.	
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.
In order to facilitate a clear understanding of the Company's operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company's consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company's financial information prepared in accordance with GAAP.

–more–

BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES

 	 	 	 	
 	% Leased by Location	
 	December 31, 2018	 	December 31, 2017	
Boston	95.9	%	 	94.1	%	
Los Angeles	96.7	%	 	85.6	%	
New York	88.0	%	 	86.9	%	
San Francisco	87.8	%	 	89.9	%	
Washington, DC	90.7	%	 	91.3	%	
Total Portfolio	91.4	%	 	90.7	%	

AT THE COMPANY            
Michael LaBelle            
Executive Vice President,
Chief Financial Officer and Treasurer            
(617) 236-3352    

Sara Buda
Vice President, Investor Relations
(617) 236-3429
sbuda@bostonproperties.com        

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