UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): August 1, 2017

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).
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 August 1, 2017, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the second quarter of 2017. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
 
Item 9.01.	Financial Statements and Exhibits.	
(d) Exhibits.

Exhibit No.	  	Description	
 	 	
*99.1	  	Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2017.	
 	 	
*99.2	  	Press release dated August 1, 2017.	
 
*	Filed herewith.	
 
3

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

BOSTON PROPERTIES, INC.	
 	 	
By:	 	/s/ Michael E. LaBelle	
 	 	Michael E. LaBelle	
 	 	Executive Vice President, Chief Financial Officer
and Treasurer	
 	
BOSTON PROPERTIES LIMITED PARTNERSHIP
By: Boston Properties, Inc., its General Partner	
 	 	
By:	 	/s/ Michael E. LaBelle	
 	 	Michael E. LaBelle	
 	 	Executive Vice President, Chief Financial Officer
and Treasurer	
Date: August 1, 2017
 
4

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
*99.1	  	Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended June 30, 2017.	
 	 	
*99.2	  	Press release dated August 1, 2017.	
 
*	Filed herewith.	
 
5

Table of Contents
Exhibit 99.1

 

Supplemental Operating and Financial Data
for the Quarter Ended June 30, 2017

Table of Contents

SECOND QUARTER 2017
 
Table of Contents

 	  	Page	 	
Company Profile	  	 	3	 	
Investor Information	  	 	4	 	
Research Coverage	  	 	5	 	
Guidance and Assumptions	  	 	6	 	
Financial Highlights	  	 	7-8	 	
Consolidated Balance Sheets	  	 	9	 	
Consolidated Income Statements	  	 	10	 	
Funds From Operations	  	 	11	 	
Funds Available for Distribution	  	 	12	 	
Interest Coverage Ratios	  	 	13	 	
Capital Structure	  	 	14	 	
Debt Analysis	  	 	15-16	 	
Unconsolidated Joint Ventures	  	 	17-18	 	
Consolidated Joint Ventures	  	 	19-20	 	
Reconciliation of Net Income Attributable to Boston Properties, Inc. Common Shareholders to Same Property Performance	  	 	21-22	 	
Same Property Net Operating Income by Reportable Segment	  	 	23	 	
Residential and Hotel Performance	  	 	24	 	
Capital Expenditures, Tenant Improvements and Leasing Commissions	  	 	25	 	
Portfolio Overview	  	 	26	 	
In-Service Property Listing	  	 	27-29	 	
Occupancy by Location	  	 	30	 	
Top 20 Tenants and Tenant Diversification	  	 	31	 	
Aggregate Lease Expiration Roll Out	  	 	32	 	
Boston Lease Expiration Roll Out	  	 	33-34	 	
New York Lease Expiration Roll Out	  	 	35-36	 	
San Francisco and Los Angeles Lease Expiration Roll Out	  	 	37-38	 	
Washington, DC Lease Expiration Roll Out	  	 	39-40	 	
CBD/Suburban Lease Expiration Roll Out	  	 	41-42	 	
Leasing Activity	  	 	43	 	
Acquisitions/Dispositions	  	 	44	 	
Value Creation Pipeline - Construction in Progress	  	 	45	 	
Value Creation Pipeline - Land Parcels and Purchase Options	  	 	46	 	
Definitions	  	 	47-48	 	
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.
(Cover photos: Salesforce Tower (left), interior of 680 Folsom Street (top right) and 690 Folsom Street (bottom right), San Francisco, CA)
 
2

Table of Contents

SECOND QUARTER 2017
 
COMPANY PROFILE
The Company
Boston Properties, Inc. (“Boston Properties,” “BXP” or the “Company”), a self-administered and self-managed real estate investment trust (REIT), is one of the largest owners, managers, and developers of Class A office properties in the United States, with a significant presence in five markets: Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997. Boston Properties is a fully integrated real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of primarily Class A office space totaling 48.4 million square feet and consisting of 164 office properties (including six properties under construction/redevelopment), five retail properties, five residential properties (including three properties under construction) 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 in developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for the U.S. government and a diverse array of creditworthy tenants.
Management
Boston Properties’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of 35 individuals averages 31 years of real estate experience and 19 years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Owen D. Thomas, Chief Executive Officer; Douglas T. Linde, President; Raymond A. Ritchey, Senior Executive Vice President; and Michael E. LaBelle, Executive Vice President, Chief Financial Officer and Treasurer. Our senior management team’s national reputation helps us attract business and investment opportunities. In addition, our other executive officers that serve as Regional Managers have strong reputations that assist in identifying and closing on new opportunities, having opportunities brought to us, and in negotiating with tenants and build-to-suit prospects. Additionally, Boston Properties’ Board of Directors consists of 11 distinguished members, the majority of whom are Independent Directors.
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:
 
 	•	 	concentrating on select targeted markets characterized by high barriers to the creation of new supply and strong real estate fundamentals where tenants have demonstrated a preference for high-quality office buildings and other facilities—currently Boston, Los Angeles, New York, San Francisco and Washington, DC;	
 
 	•	 	investing in the highest quality buildings (primarily office) with unique amenities and locations that are able to maintain high occupancy and achieve premium rental rates through economic cycles;	
 
 	•	 	in our core markets, maintaining scale and a full-service real estate capability (leasing, development, construction 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 acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle and (3) provide superior service to our tenants;	
 
 	•	 	be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing into economic growth and selectively selling assets at attractive prices, resulting in continuous portfolio refreshment;	
 
 	•	 	taking on complex, technically challenging development projects that leverage the skills of our management team to successfully develop, acquire, and reposition properties;	
 
 	•	 	exploring joint-venture opportunities with partners who seek to benefit from our depth of development and management expertise;	
 
 	•	 	ensuring a strong balance sheet to maintain consistent access to capital and the resultant ability to make opportunistic investments; and	
 
 	•	 	fostering a culture and reputation of integrity and fair dealing, making us the counterparty of choice for tenants and real estate industry participants and employer of choice for talented real estate professionals.	
Snapshot
(as of June 30, 2017)

Corporate Headquarters	 	Boston, Massachusetts	
Markets	 	Boston, Los Angeles, New York, San Francisco and Washington, DC	
Fiscal Year-End	 	December 31	
Total Properties (includes unconsolidated joint ventures)	 	175	
Total Square Feet (includes unconsolidated joint ventures)	 	48.4 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)	 	171.9 million	
Dividend - Quarter/Annualized	 	$0.75/$3.00	
Dividend Yield	 	2.44%	
Consolidated Market Capitalization	 	$31.6 billion	
BXP’s Share of Market Capitalization (2)	 	$30.7 billion	
Senior Debt Ratings	 	A- (S&P); BBB+ (Fitch); Baa2 (Moody’s)	
 
(1)	For additional detail, see page 14.	
(2)	For the Company’s definition of BXP’s Share of Market Capitalization and related disclosures, see page 47. For a reconciliation of Consolidated Market Capitalization to BXP’s Share of Market Capitalization, see page 14.	
 
3

Table of Contents

SECOND QUARTER 2017
 
INVESTOR INFORMATION

Board of Directors	 	Management	
Joel I. Klein	 	Dr. Jacob A. Frenkel	 	Raymond A. Ritchey	 	John F. Powers	
Lead Independent Director	 	Director, Chair of Nominating &	 	Senior Executive Vice President	 	Executive Vice President,	
 	 	Corporate Governance Committee	 	 	 	New York Region	
Owen D. Thomas	 	 	 	Michael E. LaBelle	 	 	
Chief Executive Officer and Director	 	Matthew J. Lustig	 	Executive Vice President, Chief Financial	 	Frank D. Burt	
 	 	Director	 	Officer and Treasurer	 	Senior Vice President, General Counsel	
Douglas T. Linde	 	 	 	 	 	 	
President and Director	 	Alan J. Patricof	 	Peter D. Johnston	 	Michael R. Walsh	
 	 	Director	 	Executive Vice President,	 	Senior Vice President, Chief Accounting Officer	
Bruce W. Duncan	 	 	 	Washington, DC Region	 	 	
Director	 	Martin Turchin	 	 	 	 	
 	 	Director	 	Bryan J. Koop	 	 	
Karen E. Dykstra	 	 	 	Executive Vice President,	 	 	
Director	 	David A. Twardock	 	Boston Region	 	 	
 	 	Director, Chair of Audit	 	 	 	 	
Carol B. Einiger	 	Committee	 	Robert E. Pester	 	 	
Director, Chair of Compensation	 	 	 	Executive Vice President,	 	 	
Committee	 	 	 	San Francisco Region	 	 	
 	 	 	 	
Chairman Emeritus	 	 	 	 	 	 	
Mortimer B. Zuckerman	 	 	 	 	 	 	
 	
Company 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) 617.236.3322	 	and Treasurer	
(f) 617.236.3311	 	 	 	(f) 617.236.3311	 	at 617.236.3352 or	
 	 	 	 	www.bostonproperties.com	 	mlabelle@bostonproperties.com	
 	 	 	 	
 	 	 	 	 	 	Arista Joyner, Investor Relations Manager	
 	 	 	 	 	 	at 617.236.3343 or	
 	 	 	 	 	 	ajoyner@bostonproperties.com	
Common Stock Data (NYSE: BXP)
Boston Properties’ common stock has the following characteristics (based on information reported by the New York Stock Exchange):

 	  	Q2 2017	 	 	Q1 2017	 	 	Q4 2016	 	 	Q3 2016	 	 	Q2 2016	 	
High Closing Price	  	$	136.87	 	 	$	139.88	 	 	$	133.39	 	 	$	143.61	 	 	$	133.13	 	
Low Closing Price	  	$	120.27	 	 	$	127.00	 	 	$	114.07	 	 	$	130.03	 	 	$	123.71	 	
Average Closing Price	  	$	126.45	 	 	$	132.59	 	 	$	124.31	 	 	$	138.78	 	 	$	128.38	 	
Closing Price, at the end of the quarter	  	$	123.02	 	 	$	132.41	 	 	$	125.78	 	 	$	136.29	 	 	$	131.90	 	
Dividends per share	  	$	0.75	 	 	$	0.75	 	 	$	0.75	 	 	$	0.65	 	 	$	0.65	 	
Closing dividend yield—annualized	  	 	2.44	% 	 	 	2.27	% 	 	 	2.39	% 	 	 	1.91	% 	 	 	1.97	% 	
Closing common shares outstanding, plus common units and LTIP units (other than unearned MYLTIP Units) on an as-converted basis (thousands) (1)	  	 	171,949	 	 	 	171,938	 	 	 	171,774	 	 	 	171,775	 	 	 	171,772	 	
Closing market value of outstanding shares and units (thousands)	  	$	21,353,166	 	 	$	22,966,310	 	 	$	21,805,734	 	 	$	23,611,215	 	 	$	22,856,727	 	
 
(1)	For additional detail, see page 14.	
Timing
Quarterly results for the next four quarters will be announced according to the following schedule:

Third Quarter, 2017	  	Tentatively November 1, 2017	  	 	  	 	
Fourth Quarter, 2017	  	Tentatively January 30, 2018	  	 	  	 	
First Quarter, 2018	  	Tentatively April 24, 2018	  	 	  	 	
Second Quarter, 2018	  	Tentatively July 31, 2018	  	 	  	 	
 
4

Table of Contents

SECOND QUARTER 2017
 
RESEARCH COVERAGE

Equity Research Coverage	  	Debt Research Coverage	  	Rating Agencies	
Jacob Kilstein	  	Craig Mailman / Jordan Sadler	  	Andrew Mollay	  	Stephen Boyd	
Argus Research Company	  	KeyBanc Capital Markets	  	Bank of America Merrill Lynch	  	Fitch Ratings	
646.747.5447	  	917.368.2316 / 917.368.2280	  	646.855.6435	  	212.908.9153	
 	 	 	 	
Jeffrey Spector / Jamie Feldman	  	Richard Anderson	  	Peter Troisi	  	Ranjini Venkatesan	
Bank of America Merrill Lynch	  	Mizuho Securities	  	Barclays	  	Moody’s Investors Service	
646.855.1363 / 646.855.5808	  	212.205.8445	  	212.412.3695	  	212.553.3828	
 	 	 	 	
Ross Smotrich	  	Vikram Malhotra	  	Thomas Cook	  	Anita Ogbara	
Barclays Capital	  	Morgan Stanley	  	Citi Investment Research	  	Standard & Poor’s	
212.526.2306	  	212.761.7064	  	212.723.1112	  	212.438.5077	
 	 	 	 	
John Kim	  	Brad Schwer	  	Mark Streeter	  	 	
BMO Capital	  	Morningstar	  	J.P. Morgan Securities	  	 	
212.885.4115	  	312.244.7061	  	212.834.5086	  	 	
 	 	 	 	
Tom Catherwood	  	Mike Carroll	  	Thierry Perrein / Jason Jones	  	 	
BTIG	  	RBC Capital Markets	  	Wells Fargo	  	 	
212.593.7510	  	440.715.2649	  	704.715.8455 / 704.715.7932	  	 	
 	 	 	 	
Michael Bilerman / Emmanuel Korchman	  	David Rodgers / Richard Schiller	  	 	  	 	
Citigroup Global Markets	  	RW Baird	  	 	  	 	
212.816.1383 / 212.816.1382	  	216.737.7341 / 312.609.5485	  	 	  	 	
 	 	 	 	
Barry Oxford	  	Alexander Goldfarb / Daniel Santos	  	 	  	 	
D.A. Davidson & Co.	  	Sandler O’Neill & Partners	  	 	  	 	
212.240.9871	  	212.466.7937 / 212.466.7927	  	 	  	 	
 	 	 	 	
Vincent Chao / Mike Husseini	  	John Guinee / Erin Aslakson	  	 	  	 	
Deutsche Bank Securities	  	Stifel, Nicolaus & Company	  	 	  	 	
212.250.6799 / 212.250.7703	  	443.224.1307 / 443.224.1350	  	 	  	 	
 	 	 	 	
Steve Sakwa / Robert Simone	  	Michael Lewis	  	 	  	 	
Evercore ISI	  	SunTrust Robinson Humphrey	  	 	  	 	
212.446.9462 / 212.446.9459	  	212.319.5659	  	 	  	 	
 	 	 	 	
Jed Reagan	  	Nick Yulico	  	 	  	 	
Green Street Advisors	  	UBS Securities	  	 	  	 	
949.640.8780	  	212.713.3402	  	 	  	 	
 	 	 	 	
Jonathan Petersen / Omotayo Okusanya	  	Blaine Heck	  	 	  	 	
Jefferies & Co.	  	Wells Fargo Securities	  	 	  	 	
212.284.1705 / 212.336.7076	  	443.263.6529	  	 	  	 	
 	 	 	 	
Anthony Paolone	  	 	  	 	  	 	
J.P. Morgan Securities
212.622.6682	  	 	  	 	  	 	
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.
 
5

Table of Contents

SECOND QUARTER 2017
 
GUIDANCE
The Company’s guidance for the third quarter 2017 and full year 2017 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 August 1, 2017 and otherwise referenced during the Company’s conference call scheduled for August 2, 2017. 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 48. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

 	  	Third Quarter 2017	 	  	Full Year 2017	 	
 	  	Low	 	 	 	 	  	High	 	  	Low	 	 	 	 	  	High	 	
Projected EPS (diluted)	  	$	0.65	 	 	 	-	 	  	$	0.67	 	  	$	2.72	 	 	 	-	 	  	$	2.77	 	
Add:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected Company share of real estate depreciation and amortization	  	 	0.87	 	 	 	-	 	  	 	0.87	 	  	 	3.50	 	 	 	-	 	  	 	3.50	 	
Less:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected Company share of gains on sales of real estate	  	 	—  	 	 	 	-	 	  	 	—  	 	  	 	0.02	 	 	 	-	 	  	 	0.02	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected FFO per share (diluted)	  	$	1.52	 	 	 	-	 	  	$	1.54	 	  	$	6.20	 	 	 	-	 	  	$	6.25	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
ASSUMPTIONS
(dollars in thousands)

 	  	Full Year 2017	 	
 	  	Low	 	 	 	 	  	High	 	
Operating property activity:	  	 	 	 	 	 	 	 	  	 	 	 	
Average In-service portfolio occupancy	  	 	90.0	% 	 	 	-	 	  	 	91.0	% 	
Increase in BXP’s Share of Same Property net operating income (excluding termination income)	  	 	2.00	% 	 	 	-	 	  	 	3.00	% 	
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income)	  	 	1.00	% 	 	 	-	 	  	 	3.00	% 	
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year	  	$	17,000	 	 	 	-	 	  	$	23,000	 	
BXP’s Share of Straight-line rent and fair value lease revenue (non-cash revenue)	  	$	75,000	 	 	 	-	 	  	$	85,000	 	
Hotel net operating income	  	$	13,000	 	 	 	-	 	  	$	15,000	 	
Termination income	  	$	21,000	 	 	 	-	 	  	$	25,000	 	
Other income (expense):	  	 	 	 	 	 	 	 	  	 	 	 	
Development and management services income	  	$	30,000	 	 	 	-	 	  	$	33,000	 	
General and administrative expense	  	$	(115,000	) 	 	 	-	 	  	$	(110,000	) 	
Net interest expense	  	$	(368,000	) 	 	 	-	 	  	$	(355,000	) 	
Noncontrolling interest:	  	 	 	 	 	 	 	 	  	 	 	 	
Noncontrolling interest in property partnerships’ share of FFO	  	$	(132,000	) 	 	 	-	 	  	$	(117,000	) 	
 
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Table of Contents

SECOND QUARTER 2017
 
FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except ratios and per share amounts)
This section 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 shown on pages 11-13. 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 on pages 47-48.

 	  	Three Months Ended	 	
 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	97,083	 	 	$	147,214	 	 	$	76,753	 	 	$	96,597	 	
Net income attributable to Boston Properties, Inc. per share - basic	  	$	0.87	 	 	$	0.63	 	 	$	0.96	 	 	$	0.50	 	 	$	0.63	 	
Net income attributable to Boston Properties, Inc. per share - diluted	  	$	0.87	 	 	$	0.63	 	 	$	0.96	 	 	$	0.50	 	 	$	0.63	 	
FFO attributable to Boston Properties, Inc. (1)	  	$	257,881	 	 	$	228,383	 	 	$	236,898	 	 	$	219,564	 	 	$	220,595	 	
Diluted FFO per share (1)	  	$	1.67	 	 	$	1.48	 	 	$	1.54	 	 	$	1.42	 	 	$	1.43	 	
Dividends per common share	  	$	0.75	 	 	$	0.75	 	 	$	0.75	 	 	$	0.65	 	 	$	0.65	 	
Funds available for distribution to common shareholders and common unitholders (FAD) (1) (2)	  	$	172,723	 	 	$	178,002	 	 	$	151,183	 	 	$	149,725	 	 	$	160,948	 	
Ratios:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (excluding capitalized interest) (3)	  	 	4.28	 	 	 	3.88	 	 	 	3.86	 	 	 	3.49	 	 	 	3.63	 	
Interest Coverage Ratio (including capitalized interest) (3)	  	 	3.67	 	 	 	3.40	 	 	 	3.46	 	 	 	3.17	 	 	 	3.28	 	
FFO Payout Ratio (2)	  	 	44.91	% 	 	 	50.68	% 	 	 	48.70	% 	 	 	45.77	% 	 	 	45.45	% 	
FAD Payout Ratio (2)	  	 	74.72	% 	 	 	72.49	% 	 	 	85.28	% 	 	 	74.63	% 	 	 	69.42	% 	
Selected Items (4):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	  	$	656,907	 	 	$	632,228	 	 	$	636,061	 	 	$	625,228	 	 	$	623,546	 	
Partners’ share of revenue from consolidated joint ventures	  	 	(73,027	) 	 	 	(70,178	) 	 	 	(69,766	) 	 	 	(69,391	) 	 	 	(69,609	) 	
BXP’s share of revenue from unconsolidated joint ventures	  	 	26,174	 	 	 	25,650	 	 	 	24,828	 	 	 	25,271	 	 	 	18,825	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of revenue	  	$	610,054	 	 	$	587,700	 	 	$	591,123	 	 	$	581,108	 	 	$	572,762	 	
Straight-line rent	  	$	3,060	 	 	$	12,023	 	 	$	14,711	 	 	$	11,107	 	 	$	(6,503	) 	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	3,326	 	 	 	(590	) 	 	 	(1,103	) 	 	 	(707	) 	 	 	(718	) 	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	2,435	 	 	 	3,563	 	 	 	3,696	 	 	 	3,285	 	 	 	1,787	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of straight-line rent	  	$	8,821	 	 	$	14,996	 	 	$	17,304	 	 	$	13,685	 	 	$	(5,434	) 	
Fair value lease revenue (5)	  	$	5,464	 	 	$	5,390	 	 	$	6,840	 	 	$	6,547	 	 	$	8,808	 	
Partners’ share of fair value lease revenue from consolidated joint ventures (5)	  	 	(1,580	) 	 	 	(1,575	) 	 	 	(2,194	) 	 	 	(2,084	) 	 	 	(3,031	) 	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (5)	  	 	492	 	 	 	493	 	 	 	494	 	 	 	511	 	 	 	(1	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of fair value lease revenue	  	$	4,376	 	 	$	4,308	 	 	$	5,140	 	 	$	4,974	 	 	$	5,776	 	
Lease termination fees	  	$	13,601	 	 	$	3,918	 	 	$	504	 	 	$	(170	) 	 	$	7,654	 	
Partners’ share of lease termination fees from consolidated joint ventures	  	 	(2,506	) 	 	 	(1,310	) 	 	 	(31	) 	 	 	421	 	 	 	(44	) 	
BXP’s share of termination income from unconsolidated joint ventures	  	 	404	 	 	 	316	 	 	 	13	 	 	 	8	 	 	 	4	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of termination income	  	$	11,499	 	 	$	2,924	 	 	$	486	 	 	$	259	 	 	$	7,614	 	
Fair value interest adjustment and hedge amortization	  	$	7,319	 	 	$	10,323	 	 	$	10,145	 	 	$	10,378	 	 	$	11,272	 	
Partners’ share of fair value interest adjustment and hedge amortization from consolidated joint ventures	  	 	(3,464	) 	 	 	(4,627	) 	 	 	(4,598	) 	 	 	(4,569	) 	 	 	(4,540	) 	
BXP’s share of fair value interest adjustment and hedge amortization from unconsolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of fair value interest adjustment	  	$	3,855	 	 	$	5,696	 	 	$	5,547	 	 	$	5,809	 	 	$	6,732	 	
Ground rent expense (6)	  	$	3,462	 	 	$	3,459	 	 	$	3,460	 	 	$	3,471	 	 	$	3,469	 	
Gains (losses) from early extinguishments of debt	  	$	14,354	 	 	$	—  	 	 	$	—  	 	 	$	(371	) 	 	$	—  	 	
Capitalized interest	  	$	14,283	 	 	$	12,345	 	 	$	10,281	 	 	$	9,788	 	 	$	9,899	 	
Capitalized wages	  	$	4,930	 	 	$	3,947	 	 	$	5,376	 	 	$	4,155	 	 	$	4,467	 	
Operating margins [(rental revenue—rental expense)/rental revenue]	  	 	63.8	% 	 	 	63.1	% 	 	 	63.6	% 	 	 	62.3	% 	 	 	64.0	% 	
Income from unconsolidated joint ventures	  	$	3,108	 	 	$	3,084	 	 	$	2,585	 	 	$	1,464	 	 	$	2,234	 	
BXP’s share of funds from operations (FFO) from unconsolidated joint ventures	  	$	12,737	(7) 	 	$	12,125	 	 	$	11,277	 	 	$	10,592	 	 	$	6,852	 	
Net income attributable to noncontrolling interests in property partnerships	  	$	15,203	 	 	$	4,424	 	 	$	(2,121	) 	 	$	(17,225	) 	 	$	6,814	 	
FFO attributable to noncontrolling interests in property partnerships	  	$	34,530	(8) 	 	$	25,839	 	 	$	25,135	 	 	$	23,682	 	 	$	26,183	 	
 
(1)	For the Company’s definitions and related disclosures, see pages 47-48.	
(2)	FFO Payout Ratio equals dividends per common share (excluding any special dividends) divided by FFO per share-diluted. For a quantitative reconciliation of FFO, see page 11. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD. For a quantitative reconciliation of FAD, see page 12.	
(3)	For a quantitative reconciliation and related disclosures, see page 13.	
(4)	Partners’ share and BXP’s share of line items below are based upon percentage ownership interests in the applicable joint ventures. For additional details, see page 47.	
(5)	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.	
(6)	Includes non-cash straight-line adjustments to ground rent expense. See page 13 for the straight-line adjustments to the ground rent expense.	
(7)	For additional detail, see page 18.	
(8)	For additional detail, see page 20.	
 
7

Table of Contents

SECOND QUARTER 2017
FINANCIAL HIGHLIGHTS (continued)
(unaudited and in thousands, except ratios and per share amounts)
 
This section 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. 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 on pages 47-48.

 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Balance Sheet Items:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Above-market rents (included within Prepaid Expenses and Other Assets)	  	$	30,810	 	 	$	33,923	 	 	$	37,079	 	 	$	40,346	 	 	$	43,780	 	
Below-market rents (included within Other Liabilities)	  	$	115,869	 	 	$	123,545	 	 	$	132,495	 	 	$	142,595	 	 	$	152,576	 	
Accrued ground rent expense, net liability (included within Prepaid Expenses and Other Assets and Other Liabilities)	  	$	43,753	 	 	$	43,356	 	 	$	42,717	 	 	$	41,718	 	 	$	40,687	 	
Outside members’ notes payable (1)	  	$	—  	 	 	$	180,000	 	 	$	180,000	 	 	$	180,000	 	 	$	180,000	 	
Accrued interest payable on outside members’ notes payable (included within Accrued Interest Payable) (1)	  	$	—  	 	 	$	162,936	 	 	$	153,758	 	 	$	144,825	 	 	$	136,131	 	
Capitalization:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Price @ Quarter End	  	$	123.02	 	 	$	132.41	 	 	$	125.78	 	 	$	136.29	 	 	$	131.90	 	
Equity Value @ Quarter End	  	$	21,353,166	 	 	$	22,966,310	 	 	$	21,805,734	 	 	$	23,611,215	 	 	$	22,856,727	 	
Consolidated Debt	  	$	10,236,639	 	 	$	9,886,845	 	 	$	9,796,133	 	 	$	9,808,922	 	 	$	9,934,084	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of Unconsolidated Joint Venture Debt (2)	  	 	317,724	 	 	 	317,719	 	 	 	318,193	 	 	 	350,225	 	 	 	350,831	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of Consolidated Debt (5)	  	 	1,211,485	 	 	 	1,138,446	 	 	 	1,144,473	 	 	 	1,150,462	 	 	 	1,156,399	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Debt (3)(4)	  	$	9,342,878	 	 	$	9,066,118	 	 	$	8,969,853	 	 	$	9,008,685	 	 	$	9,128,516	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Market Capitalization	  	$	31,589,805	 	 	$	32,853,155	 	 	$	31,601,867	 	 	$	33,420,137	 	 	$	32,790,811	 	
Consolidated Debt/Consolidated Market Capitalization (3)	  	 	32.40	% 	 	 	30.09	% 	 	 	31.00	% 	 	 	29.35	% 	 	 	30.30	% 	
BXP’s Share of Market Capitalization (3)(4)	  	$	30,696,044	(6) 	 	$	32,032,428	 	 	$	30,775,587	 	 	$	32,619,900	 	 	$	31,985,243	 	
BXP’s Share of Debt/BXP’s Share of Market Capitalization (3)(4)	  	 	30.44	% (6) 	 	 	28.30	% 	 	 	29.15	% 	 	 	27.62	% 	 	 	28.54	% 	
 
(1)	On June 7, 2017, the Company’s consolidated entity in which it has a 60% interest and that owns 767 Fifth Avenue (the General Motors Building) in New York City completed the refinancing of the indebtedness that had been secured by direct and indirect interests in the property. For further information, reference the Company’s 2nd quarter earnings press release.	
(2)	Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 17.	
(3)	For the Company’s definitions, see pages 47-48.	
(4)	Partners’ share and BXP’s share of line items are based upon percentage ownership interests in the applicable joint ventures. For additional details, see page 47.	
(5)	Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 19.	
(6)	For additional detail, see page 14.	
 
8

Table of Contents

SECOND QUARTER 2017
 
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
    ASSETS	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate	  	$	19,015,077	 	 	$	18,931,136	 	 	$	18,862,648	 	 	$	18,704,856	 	 	$	18,690,403	 	
Construction in progress (1)	  	 	1,348,838	 	 	 	1,211,324	 	 	 	1,037,959	 	 	 	954,013	 	 	 	865,359	 	
Land held for future development (2)	  	 	250,451	 	 	 	249,800	 	 	 	246,656	 	 	 	243,887	 	 	 	241,106	 	
Less accumulated depreciation	  	 	(4,379,446	) 	 	 	(4,302,283	) 	 	 	(4,222,235	) 	 	 	(4,113,553	) 	 	 	(4,056,716	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate	  	 	16,234,920	 	 	 	16,089,977	 	 	 	15,925,028	 	 	 	15,789,203	 	 	 	15,740,152	 	
Cash and cash equivalents	  	 	492,435	 	 	 	302,939	 	 	 	356,914	 	 	 	419,323	 	 	 	1,180,044	 	
Cash held in escrows	  	 	47,345	 	 	 	51,244	 	 	 	63,174	 	 	 	63,980	 	 	 	65,654	 	
Investments in securities	  	 	26,781	 	 	 	25,817	 	 	 	23,814	 	 	 	23,022	 	 	 	21,775	 	
Tenant and other receivables, net	  	 	88,687	 	 	 	73,012	 	 	 	92,548	 	 	 	76,258	 	 	 	84,861	 	
Accrued rental income, net	  	 	820,022	 	 	 	812,124	 	 	 	799,138	 	 	 	785,569	 	 	 	776,816	 	
Deferred charges, net	  	 	658,219	 	 	 	666,677	 	 	 	686,163	 	 	 	680,192	 	 	 	697,823	 	
Prepaid expenses and other assets	  	 	93,985	 	 	 	150,905	 	 	 	129,666	 	 	 	176,693	 	 	 	144,222	 	
Investments in unconsolidated joint ventures	  	 	819,368	 	 	 	793,932	 	 	 	775,198	 	 	 	775,659	 	 	 	252,618	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	19,281,762	 	 	$	18,966,627	 	 	$	18,851,643	 	 	$	18,789,899	 	 	$	18,963,965	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
    LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage notes payable, net	  	$	2,986,283	 	 	$	2,046,959	 	 	$	2,063,087	 	 	$	2,077,707	 	 	$	3,189,013	 	
Unsecured senior notes, net	  	 	7,250,356	 	 	 	7,248,152	 	 	 	7,245,953	 	 	 	7,243,767	 	 	 	6,257,274	 	
Unsecured line of credit (3)	  	 	—  	 	 	 	105,000	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Unsecured term loan (3)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Mezzanine notes payable	  	 	—  	 	 	 	306,734	 	 	 	307,093	 	 	 	307,448	 	 	 	307,797	 	
Outside members’ notes payable	  	 	—  	 	 	 	180,000	 	 	 	180,000	 	 	 	180,000	 	 	 	180,000	 	
Accounts payable and accrued expenses	  	 	303,559	 	 	 	313,723	 	 	 	298,524	 	 	 	312,979	 	 	 	287,464	 	
Dividends and distributions payable	  	 	130,432	 	 	 	130,418	 	 	 	130,308	 	 	 	113,038	 	 	 	113,071	 	
Accrued interest payable	  	 	85,172	 	 	 	266,714	 	 	 	243,933	 	 	 	234,628	 	 	 	222,175	 	
Other liabilities	  	 	452,608	 	 	 	446,489	 	 	 	450,821	 	 	 	461,079	 	 	 	508,952	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	11,208,410	 	 	 	11,044,189	 	 	 	10,919,719	 	 	 	10,930,646	 	 	 	11,065,746	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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	  	 	200,000	 	 	 	200,000	 	 	 	200,000	 	 	 	200,000	 	 	 	200,000	 	
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,307,529, 153,849,231, 153,790,175, 153,773,012 and 153,674,930 outstanding, respectively	  	 	1,543	 	 	 	1,538	 	 	 	1,538	 	 	 	1,538	 	 	 	1,537	 	
Additional paid-in capital	  	 	6,363,034	 	 	 	6,339,970	 	 	 	6,333,424	 	 	 	6,326,580	 	 	 	6,316,191	 	
Dividends in excess of earnings	  	 	(694,320	) 	 	 	(712,270	) 	 	 	(693,694	) 	 	 	(725,522	) 	 	 	(702,361	) 	
Treasury common stock, at cost	  	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	
Accumulated other comprehensive loss	  	 	(53,161	) 	 	 	(50,983	) 	 	 	(52,251	) 	 	 	(73,943	) 	 	 	(79,748	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Boston Properties, Inc.	  	 	5,814,374	 	 	 	5,775,533	 	 	 	5,786,295	 	 	 	5,725,931	 	 	 	5,732,897	 	
Noncontrolling interests:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common units of the Operating Partnership	  	 	604,997	 	 	 	617,252	 	 	 	614,982	 	 	 	608,280	 	 	 	612,385	 	
Property partnerships	  	 	1,653,981	 	 	 	1,529,653	 	 	 	1,530,647	 	 	 	1,525,042	 	 	 	1,552,937	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	8,073,352	 	 	 	7,922,438	 	 	 	7,931,924	 	 	 	7,859,253	 	 	 	7,898,219	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	19,281,762	 	 	$	18,966,627	 	 	$	18,851,643	 	 	$	18,789,899	 	 	$	18,963,965	 	

(1)	Represents the portion of the Company’s consolidated development projects that qualifies for interest capitalization. Such portion generally excludes intangible assets.	
(2)	Includes land held for future development and pre-development costs.	
(3)	On April 24, 2017, the Company amended and restated its revolving credit agreement. Among other things, the agreement (1) increased the total commitment of the revolving line of credit from $1.0 billion to $1.5 billion, (2) extended the maturity date to April 24, 2022, (3) reduced the per annum variable interest rates, and (4) added a $500.0 million Unsecured Term Loan that permits the Company to draw funds until April 24, 2018.	
 
9

Table of Contents

SECOND QUARTER 2017
 
CONSOLIDATED INCOME STATEMENTS
(unaudited and in thousands, except for per share amounts)

 	  	Three Months Ended	 	
 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Revenue	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rent	  	$	520,542	 	 	$	503,562	 	 	$	498,941	 	 	$	489,312	 	 	$	493,386	 	
Recoveries from tenants	  	 	89,163	 	 	 	89,164	 	 	 	91,123	 	 	 	92,560	 	 	 	85,706	 	
Parking and other	  	 	26,462	 	 	 	25,610	 	 	 	25,334	 	 	 	24,638	 	 	 	26,113	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total rental revenue	  	 	636,167	 	 	 	618,336	 	 	 	615,398	 	 	 	606,510	 	 	 	605,205	 	
Hotel revenue	  	 	13,375	 	 	 	7,420	 	 	 	10,965	 	 	 	12,354	 	 	 	12,808	 	
Development and management services	  	 	7,365	 	 	 	6,472	 	 	 	9,698	 	 	 	6,364	 	 	 	5,533	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	656,907	 	 	 	632,228	 	 	 	636,061	 	 	 	625,228	 	 	 	623,546	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	116,415	 	 	 	116,415	 	 	 	113,669	 	 	 	117,728	 	 	 	113,212	 	
Real estate taxes	  	 	109,509	 	 	 	109,435	 	 	 	108,556	 	 	 	109,480	 	 	 	104,726	 	
Demolition costs	  	 	4,530	 	 	 	2,437	 	 	 	1,873	 	 	 	1,352	 	 	 	—  	 	
Hotel operating	  	 	8,404	 	 	 	7,091	 	 	 	7,736	 	 	 	8,118	 	 	 	7,978	 	
General and administrative (1)	  	 	27,141	 	 	 	31,386	 	 	 	25,293	 	 	 	25,165	 	 	 	25,418	 	
Transaction costs	  	 	299	 	 	 	34	 	 	 	1,200	 	 	 	249	 	 	 	913	 	
Impairment loss	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,783	 	 	 	—  	 	
Depreciation and amortization	  	 	151,919	 	 	 	159,205	 	 	 	178,032	 	 	 	203,748	 	 	 	153,175	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	418,217	 	 	 	426,003	 	 	 	436,359	 	 	 	467,623	 	 	 	405,422	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	238,690	 	 	 	206,225	 	 	 	199,702	 	 	 	157,605	 	 	 	218,124	 	
Other income (expense)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from unconsolidated joint ventures	  	 	3,108	 	 	 	3,084	 	 	 	2,585	 	 	 	1,464	 	 	 	2,234	 	
Gain on sale of investment in unconsolidated joint venture	  	 	—  	 	 	 	—  	 	 	 	59,370	 	 	 	—  	 	 	 	—  	 	
Interest and other income	  	 	1,504	 	 	 	614	 	 	 	573	 	 	 	3,628	 	 	 	1,524	 	
Gains from investments in securities (1)	  	 	730	 	 	 	1,042	 	 	 	560	 	 	 	976	 	 	 	478	 	
Interest expense (2)	  	 	(95,143	) 	 	 	(95,534	) 	 	 	(97,896	) 	 	 	(104,641	) 	 	 	(105,003	) 	
Gains (losses) from early extinguishments of debt	  	 	14,354	 	 	 	—  	 	 	 	—  	 	 	 	(371	) 	 	 	—  	 	
Losses from interest rate contracts	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(140	) 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	115,431	 	 	 	164,894	 	 	 	58,521	 	 	 	117,357	 	
Gains on sales of real estate	  	 	3,767	 	 	 	133	 	 	 	—  	 	 	 	12,983	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	167,010	 	 	 	115,564	 	 	 	164,894	 	 	 	71,504	 	 	 	117,357	 	
Net income attributable to noncontrolling interests	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest in property partnerships	  	 	(15,203	) 	 	 	(4,424	) 	 	 	2,121	 	 	 	17,225	 	 	 	(6,814	) 	
Noncontrolling interest—common units of the Operating Partnership (3)	  	 	(15,473	) 	 	 	(11,432	) 	 	 	(17,097	) 	 	 	(9,387	) 	 	 	(11,357	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	136,334	 	 	 	99,708	 	 	 	149,918	 	 	 	79,342	 	 	 	99,186	 	
Preferred dividends	  	 	(2,625	) 	 	 	(2,625	) 	 	 	(2,704	) 	 	 	(2,589	) 	 	 	(2,589	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	97,083	 	 	$	147,214	 	 	$	76,753	 	 	$	96,597	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME PER SHARE OF COMMON STOCK (EPS)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. per share - basic	  	$	0.87	 	 	$	0.63	 	 	$	0.96	 	 	$	0.50	 	 	$	0.63	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. per share - diluted	  	$	0.87	 	 	$	0.63	 	 	$	0.96	 	 	$	0.50	 	 	$	0.63	 	

(1)	General and administrative expense includes $(730), $(1,042), $(560), $(976) and $(478) and gains from investments in securities include $730, $1,042, $560, $976 and $478 for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively, related to the Company’s deferred compensation plan.	
(2)	For the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, interest expense includes $7,078, $9,178, $8,933, $8,694 and $8,461, respectively, consisting of the interest expense on the partner loans for the 767 Fifth Avenue (The GM Building) consolidated joint venture, which amount is allocated to the partners within noncontrolling interests in property partnerships. The Company’s share of the interest expense on its loan to the joint venture eliminates in consolidation. For additional detail see page 8.	
(3)	Equals noncontrolling interest—common units of the Operating Partnership’s share of 10.19%, 10.33%, 10.25%, 10.28% and 10.33% of income before net income attributable to noncontrolling interests in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.    	
 
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Table of Contents

SECOND QUARTER 2017
 
FUNDS FROM OPERATIONS (FFO)
(unaudited and in thousands, except for per share amounts)

 	  	Three Months Ended	 	
 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	97,083	 	 	$	147,214	 	 	$	76,753	 	 	$	96,597	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,625	 	 	 	2,625	 	 	 	2,704	 	 	 	2,589	 	 	 	2,589	 	
Noncontrolling interest - common units of the Operating Partnership	  	 	15,473	 	 	 	11,432	 	 	 	17,097	 	 	 	9,387	 	 	 	11,357	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	4,424	 	 	 	(2,121	) 	 	 	(17,225	) 	 	 	6,814	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	3,767	 	 	 	133	 	 	 	—  	 	 	 	12,983	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	115,431	 	 	 	164,894	 	 	 	58,521	 	 	 	117,357	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	151,919	 	 	 	159,205	 	 	 	178,032	 	 	 	203,748	 	 	 	153,175	 	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(19,327	) 	 	 	(21,415	) 	 	 	(27,256	) 	 	 	(40,907	) 	 	 	(19,369	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,629	 	 	 	9,041	 	 	 	8,692	 	 	 	9,128	 	 	 	4,618	 	
Corporate-related depreciation and amortization	  	 	(486	) 	 	 	(525	) 	 	 	(449	) 	 	 	(393	) 	 	 	(362	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on sale of investment in unconsolidated joint venture	  	 	—  	 	 	 	—  	 	 	 	59,370	 	 	 	—  	 	 	 	—  	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	4,424	 	 	 	(2,121	) 	 	 	(17,225	) 	 	 	6,814	 	
Preferred dividends	  	 	2,625	 	 	 	2,625	 	 	 	2,704	 	 	 	2,589	 	 	 	2,589	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (“Basic FFO”)	  	 	287,150	 	 	 	254,688	 	 	 	263,960	 	 	 	244,733	 	 	 	246,016	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	  	 	29,269	 	 	 	26,305	 	 	 	27,062	 	 	 	25,169	 	 	 	25,421	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO attributable to Boston Properties, Inc. common shareholders	  	$	257,881	 	 	$	228,383	 	 	$	236,898	 	 	$	219,564	 	 	$	220,595	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of Basic FFO	  	 	89.81	% 	 	 	89.67	% 	 	 	89.75	% 	 	 	89.72	% 	 	 	89.67	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic FFO per share	  	$	1.67	 	 	$	1.48	 	 	$	1.54	 	 	$	1.43	 	 	$	1.44	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - basic	  	 	154,177	 	 	 	153,860	 	 	 	153,814	 	 	 	153,754	 	 	 	153,662	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted FFO per share	  	$	1.67	 	 	$	1.48	 	 	$	1.54	 	 	$	1.42	 	 	$	1.43	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - diluted	  	 	154,331	 	 	 	154,214	 	 	 	153,991	 	 	 	154,136	 	 	 	153,860	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation to Diluted FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic FFO	  	$	287,150	 	 	$	254,688	 	 	$	263,960	 	 	$	244,733	 	 	$	246,016	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of dilutive securities - stock-based compensation	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted FFO	  	 	287,150	 	 	 	254,688	 	 	 	263,960	 	 	 	244,733	 	 	 	246,016	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of diluted	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO	  	 	29,243	 	 	 	26,251	 	 	 	27,034	 	 	 	25,113	 	 	 	25,391	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s share of Diluted FFO	  	$	257,907	 	 	$	228,437	 	 	$	236,926	 	 	$	219,620	 	 	$	220,625	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Shares/Units for Diluted FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares/units for Basic FFO	  	 	171,675	 	 	 	171,581	 	 	 	171,385	 	 	 	171,379	 	 	 	171,370	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of dilutive securities - stock-based compensation (shares/units)	  	 	154	 	 	 	354	 	 	 	177	 	 	 	382	 	 	 	198	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares/units for Diluted FFO	  	 	171,829	 	 	 	171,935	 	 	 	171,562	 	 	 	171,761	 	 	 	171,568	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)	  	 	17,498	 	 	 	17,721	 	 	 	17,571	 	 	 	17,625	 	 	 	17,708	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s share of shares/units for Diluted FFO	  	 	154,331	 	 	 	154,214	 	 	 	153,991	 	 	 	154,136	 	 	 	153,860	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of Diluted FFO	  	 	89.82	% 	 	 	89.69	% 	 	 	89.76	% 	 	 	89.74	% 	 	 	89.68	% 	

11

Table of Contents

SECOND QUARTER 2017
 
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
(in thousands, except for ratio amounts)

 	  	Three Months Ended	 	
 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	97,083	 	 	$	147,214	 	 	$	76,753	 	 	$	96,597	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,625	 	 	 	2,625	 	 	 	2,704	 	 	 	2,589	 	 	 	2,589	 	
Noncontrolling interest - common units of the Operating Partnership	  	 	15,473	 	 	 	11,432	 	 	 	17,097	 	 	 	9,387	 	 	 	11,357	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	4,424	 	 	 	(2,121	) 	 	 	(17,225	) 	 	 	6,814	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	3,767	 	 	 	133	 	 	 	—  	 	 	 	12,983	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	115,431	 	 	 	164,894	 	 	 	58,521	 	 	 	117,357	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	151,919	 	 	 	159,205	 	 	 	178,032	 	 	 	203,748	 	 	 	153,175	 	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(19,327	) 	 	 	(21,415	) 	 	 	(27,256	) 	 	 	(40,907	) 	 	 	(19,369	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,629	 	 	 	9,041	 	 	 	8,692	 	 	 	9,128	 	 	 	4,618	 	
Corporate-related depreciation and amortization	  	 	(486	) 	 	 	(525	) 	 	 	(449	) 	 	 	(393	) 	 	 	(362	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gain on sale of investment in unconsolidated joint venture	  	 	—  	 	 	 	—  	 	 	 	59,370	 	 	 	—  	 	 	 	—  	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	4,424	 	 	 	(2,121	) 	 	 	(17,225	) 	 	 	6,814	 	
Preferred dividends	  	 	2,625	 	 	 	2,625	 	 	 	2,704	 	 	 	2,589	 	 	 	2,589	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic FFO	  	 	287,150	 	 	 	254,688	 	 	 	263,960	 	 	 	244,733	 	 	 	246,016	 	
Straight-line rent	  	 	(3,060	) 	 	 	(12,023	) 	 	 	(14,711	) 	 	 	(11,107	) 	 	 	6,503	 	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	(3,326	) 	 	 	590	 	 	 	1,103	 	 	 	707	 	 	 	718	 	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	(2,435	) 	 	 	(3,563	) 	 	 	(3,696	) 	 	 	(3,285	) 	 	 	(1,787	) 	
Lease transaction costs that qualify as rent inducements (1)	  	 	115	 	 	 	682	 	 	 	487	 	 	 	861	 	 	 	2,200	 	
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (1)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (1)	  	 	223	 	 	 	132	 	 	 	43	 	 	 	15	 	 	 	—  	 	
Fair value lease revenue (2)	  	 	(5,464	) 	 	 	(5,390	) 	 	 	(6,840	) 	 	 	(6,547	) 	 	 	(8,808	) 	
Partners’ share of fair value lease revenue from consolidated joint ventures (2)	  	 	1,580	 	 	 	1,575	 	 	 	2,194	 	 	 	2,084	 	 	 	3,031	 	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (2)	  	 	(492	) 	 	 	(493	) 	 	 	(494	) 	 	 	(511	) 	 	 	1	 	
Non-cash losses (gains) from early extinguishments of debt	  	 	(14,444	) 	 	 	—  	 	 	 	—  	 	 	 	371	 	 	 	—  	 	
Partners’ share of non-cash losses (gains) from early extinguishments of debt from consolidated joint ventures	  	 	5,878	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
BXP’s share of non-cash losses (gains) from early extinguishments of debt from unconsolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Non-cash termination income adjustment (fair value lease amounts)	  	 	(525	) 	 	 	(403	) 	 	 	7	 	 	 	—  	 	 	 	141	 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures	  	 	210	 	 	 	161	 	 	 	(3	) 	 	 	—  	 	 	 	(41	) 	
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures	  	 	(214	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Straight-line ground rent expense adjustment (3)	  	 	398	 	 	 	639	 	 	 	998	 	 	 	1,031	 	 	 	935	 	
Stock-based compensation	  	 	8,435	 	 	 	10,802	 	 	 	7,621	 	 	 	7,643	 	 	 	7,578	 	
Non-real estate depreciation	  	 	486	 	 	 	525	 	 	 	449	 	 	 	393	 	 	 	362	 	
Impairment loss	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,783	 	 	 	—  	 	
Fair value interest adjustment and hedge amortization	  	 	(7,319	) 	 	 	(10,323	) 	 	 	(10,145	) 	 	 	(10,378	) 	 	 	(11,272	) 	
Partners’ share of fair value interest adjustment and hedge amortization from consolidated joint ventures	  	 	3,464	 	 	 	4,627	 	 	 	4,598	 	 	 	4,569	 	 	 	4,540	 	
BXP’s share of fair value interest adjustment and hedge amortization from unconsolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
2nd generation tenant improvements and leasing commissions	  	 	(85,427	) 	 	 	(48,730	) 	 	 	(75,708	) 	 	 	(69,742	) 	 	 	(74,719	) 	
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated joint ventures	  	 	200	 	 	 	123	 	 	 	449	 	 	 	805	 	 	 	1,247	 	
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated joint ventures	  	 	(159	) 	 	 	(1,164	) 	 	 	(1,472	) 	 	 	(18	) 	 	 	(8,616	) 	
Unearned portion of capitalized fees from consolidated joint ventures	  	 	607	 	 	 	537	 	 	 	1,787	 	 	 	250	 	 	 	2,697	 	
Maintenance capital expenditures (4)	  	 	(11,643	) 	 	 	(10,677	) 	 	 	(16,334	) 	 	 	(11,889	) 	 	 	(9,654	) 	
Partners’ share of maintenance capital expenditures from consolidated joint ventures (4)	  	 	1,004	 	 	 	2,129	 	 	 	1,197	 	 	 	377	 	 	 	422	 	
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (4)	  	 	(17	) 	 	 	(211	) 	 	 	(437	) 	 	 	(283	) 	 	 	(112	) 	
Hotel improvements, equipment upgrades and replacements	  	 	(2,502	) 	 	 	(6,231	) 	 	 	(3,870	) 	 	 	(2,137	) 	 	 	(434	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds available for distribution to common shareholders and common unitholders (FAD)  (A)	  	$	172,723	 	 	$	178,002	 	 	$	151,183	 	 	$	149,725	 	 	$	160,948	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Distributions to common shareholders and unitholders (excluding any special distributions)  (B)	  	$	129,055	 	 	$	129,040	 	 	$	128,930	 	 	$	111,739	 	 	$	111,737	 	
FAD Payout Ratio (B÷A)	  	 	74.72	% 	 	 	72.49	% 	 	 	85.28	% 	 	 	74.63	% 	 	 	69.42	% 	

(1)	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.	
(2)	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.	
(3)	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 2020 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 7.	
(4)	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures. See page 25 for additional detail.	
 
12

Table of Contents

SECOND QUARTER 2017
 
INTEREST COVERAGE RATIOS
(in thousands, except for ratio amounts)

 	  	Three Months Ended	 	
 	  	30-Jun-17	 	 	31-Mar-17	 	 	31-Dec-16	 	 	30-Sep-16	 	 	30-Jun-16	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	97,083	 	 	$	147,214	 	 	$	76,753	 	 	$	96,597	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,625	 	 	 	2,625	 	 	 	2,704	 	 	 	2,589	 	 	 	2,589	 	
Noncontrolling interest - common units of the Operating Partnership	  	 	15,473	 	 	 	11,432	 	 	 	17,097	 	 	 	9,387	 	 	 	11,357	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	4,424	 	 	 	(2,121	) 	 	 	(17,225	) 	 	 	6,814	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	3,767	 	 	 	133	 	 	 	—  	 	 	 	12,983	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	115,431	 	 	 	164,894	 	 	 	58,521	 	 	 	117,357	 	
Noncontrolling interests in property partnerships	  	 	(15,203	) 	 	 	(4,424	) 	 	 	2,121	 	 	 	17,225	 	 	 	(6,814	) 	
Interest expense	  	 	95,143	 	 	 	95,534	 	 	 	97,896	 	 	 	104,641	 	 	 	105,003	 	
Partners’ share of interest expense from consolidated joint ventures	  	 	(16,401	) 	 	 	(17,259	) 	 	 	(17,579	) 	 	 	(17,460	) 	 	 	(17,177	) 	
BXP’s share of interest expense from unconsolidated joint ventures	  	 	3,822	 	 	 	3,749	 	 	 	3,654	 	 	 	4,025	 	 	 	4,010	 	
Depreciation and amortization expense	  	 	151,919	 	 	 	159,205	 	 	 	178,032	 	 	 	203,748	 	 	 	153,175	 	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(19,327	) 	 	 	(21,415	) 	 	 	(27,256	) 	 	 	(40,907	) 	 	 	(19,369	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,629	 	 	 	9,041	 	 	 	8,692	 	 	 	9,128	 	 	 	4,618	 	
Gain on sale of investment in unconsolidated joint venture	  	 	—  	 	 	 	—  	 	 	 	(59,370	) 	 	 	—  	 	 	 	—  	 	
Non-cash losses (gains) from early extinguishments of debt	  	 	(14,444	) 	 	 	—  	 	 	 	—  	 	 	 	371	 	 	 	—  	 	
Partners’ share of non-cash losses (gains) from early extinguishments of debt from consolidated joint ventures	  	 	5,878	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
BXP’s share of non-cash losses (gains) from early extinguishments of debt from unconsolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Impairment loss	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	1,783	 	 	 	—  	 	
Non-cash termination income adjustment (fair value lease amounts)	  	 	(525	) 	 	 	(403	) 	 	 	7	 	 	 	—  	 	 	 	141	 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures	  	 	210	 	 	 	161	 	 	 	(3	) 	 	 	—  	 	 	 	(41	) 	
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures	  	 	(214	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Stock-based compensation	  	 	8,435	 	 	 	10,802	 	 	 	7,621	 	 	 	7,643	 	 	 	7,578	 	
Straight-line ground rent expense adjustment (1)	  	 	398	 	 	 	639	 	 	 	998	 	 	 	1,031	 	 	 	935	 	
Straight-line rent	  	 	(3,060	) 	 	 	(12,023	) 	 	 	(14,711	) 	 	 	(11,107	) 	 	 	6,503	 	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	(3,326	) 	 	 	590	 	 	 	1,103	 	 	 	707	 	 	 	718	 	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	(2,435	) 	 	 	(3,563	) 	 	 	(3,696	) 	 	 	(3,285	) 	 	 	(1,787	) 	
Lease transaction costs that qualify as rent inducements (2)	  	 	115	 	 	 	682	 	 	 	487	 	 	 	861	 	 	 	2,200	 	
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (2)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (2)	  	 	223	 	 	 	132	 	 	 	43	 	 	 	15	 	 	 	—  	 	
Fair value lease revenue (3)	  	 	(5,464	) 	 	 	(5,390	) 	 	 	(6,840	) 	 	 	(6,547	) 	 	 	(8,808	) 	
Partners’ share of fair value lease revenue from consolidated joint ventures (3)	  	 	1,580	 	 	 	1,575	 	 	 	2,194	 	 	 	2,084	 	 	 	3,031	 	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (3)	  	 	(492	) 	 	 	(493	) 	 	 	(494	) 	 	 	(511	) 	 	 	1	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal (A)	  	$	359,704	 	 	$	332,571	 	 	$	337,793	 	 	$	331,966	 	 	$	351,274	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Divided by:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	$	95,143	 	 	$	95,534	 	 	$	97,896	 	 	$	104,641	 	 	$	105,003	 	
Partners’ share of interest expense from consolidated joint ventures	  	 	(16,401	) 	 	 	(17,259	) 	 	 	(17,579	) 	 	 	(17,460	) 	 	 	(17,177	) 	
BXP’s share of interest expense from unconsolidated joint ventures	  	 	3,822	 	 	 	3,749	 	 	 	3,654	 	 	 	4,025	 	 	 	4,010	 	
Fair value interest adjustment	  	 	7,319	 	 	 	10,323	 	 	 	10,145	 	 	 	10,378	 	 	 	11,272	 	
Partners’ share of fair value interest adjustment from consolidated joint ventures	  	 	(3,464	) 	 	 	(4,627	) 	 	 	(4,598	) 	 	 	(4,569	) 	 	 	(4,540	) 	
BXP’s share of fair value interest adjustment from unconsolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Amortization of financing costs	  	 	(2,442	) 	 	 	(1,967	) 	 	 	(1,964	) 	 	 	(1,889	) 	 	 	(1,704	) 	
Partners’ share of amortization of financing costs from consolidated joint ventures	  	 	206	 	 	 	9	 	 	 	39	 	 	 	38	 	 	 	38	 	
BXP’s share of amortization of financing costs from unconsolidated joint ventures	  	 	(102	) 	 	 	(100	) 	 	 	(100	) 	 	 	(113	) 	 	 	(112	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted interest expense excluding capitalized interest  (B)	  	 	84,081	 	 	 	85,662	 	 	 	87,493	 	 	 	95,051	 	 	 	96,790	 	
Capitalized interest	  	 	14,283	 	 	 	12,345	 	 	 	10,281	 	 	 	9,788	 	 	 	10,222	 	
Partners’ share of capitalized interest from consolidated joint ventures	  	 	(238	) 	 	 	(251	) 	 	 	(203	) 	 	 	(21	) 	 	 	—  	 	
BXP’s share of capitalized interest from unconsolidated joint ventures	  	 	(6	) 	 	 	(6	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted interest expense including capitalized interest  (C)	  	$	98,120	 	 	$	97,750	 	 	$	97,571	 	 	$	104,818	 	 	$	107,012	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (excluding capitalized interest)  (A÷B)  (4)	  	 	4.28	 	 	 	3.88	 	 	 	3.86	 	 	 	3.49	 	 	 	3.63	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (including capitalized interest)  (A÷C)  (4)	  	 	3.67	 	 	 	3.40	 	 	 	3.46	 	 	 	3.17	 	 	 	3.28	 	

(1)	Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the 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 2020 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 7.	
(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.	
(3)	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.	
(4)	The Company believes that the presentation of its Interest Coverage Ratio provides investors with useful information about the Company’s financial condition because it measures the margin it has for paying interest expense as of a certain date. 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.	
 
13

Table of Contents

SECOND QUARTER 2017
 
CAPITAL STRUCTURE
(in thousands, except percentages)
Consolidated Debt

 	  	Aggregate Principal
June 30, 2017	 	
Mortgage Notes Payable	  	$	3,022,907	 	
Unsecured Line of Credit	  	 	—  	 	
Delayed Draw Term Loan	  	 	—  	 	
Unsecured Senior Notes, at face value	  	 	7,300,000	 	
 	  	 	 	 	
Subtotal	  	 	10,322,907	 	
Discount on Unsecured Senior Notes	  	 	(17,474	) 	
Deferred Financing Costs, Net	  	 	(68,794	) 	
 	  	 	 	 	
Consolidated Debt	  	$	10,236,639	 	
 	  	 	 	 	
Boston Properties Limited Partnership Unsecured Senior Notes (1)

Settlement Date	  	Maturity Date	 	  	Principal	 	  	Effective Yield
(on issue
date)	 	 	Coupon	 	 	Public Offering
Price	 	 	Discount	 	  	Deferred Financing
Costs, Net	 	  	Unsecured Senior
Notes, Net	 	
8/17/2016	  	 	10/1/2026	 	  	$	1,000,000	 	  	 	3.495	% 	 	 	2.750	% 	 	 	99.271	% 	 	$	6,765	 	  	$	7,489	 	  	$	985,746	 	
1/20/2016	  	 	2/1/2026	 	  	 	1,000,000	 	  	 	3.766	% 	 	 	3.650	% 	 	 	99.708	% 	 	 	2,568	 	  	 	6,991	 	  	 	990,441	 	
6/27/2013	  	 	2/1/2024	 	  	 	700,000	 	  	 	3.916	% 	 	 	3.800	% 	 	 	99.694	% 	 	 	1,413	 	  	 	3,702	 	  	 	694,885	 	
4/11/2013	  	 	9/1/2023	 	  	 	500,000	 	  	 	3.279	% 	 	 	3.125	% 	 	 	99.379	% 	 	 	1,972	 	  	 	2,479	 	  	 	495,549	 	
6/11/2012	  	 	2/1/2023	 	  	 	1,000,000	 	  	 	3.954	% 	 	 	3.850	% 	 	 	99.779	% 	 	 	1,261	 	  	 	4,365	 	  	 	994,374	 	
11/10/2011	  	 	11/15/2018	 	  	 	850,000	 	  	 	3.853	% 	 	 	3.700	% 	 	 	99.767	% 	 	 	426	 	  	 	2,616	 	  	 	846,958	 	
11/18/2010	  	 	5/15/2021	 	  	 	850,000	 	  	 	4.289	% 	 	 	4.125	% 	 	 	99.260	% 	 	 	2,640	 	  	 	1,891	 	  	 	845,469	 	
4/19/2010	  	 	11/15/2020	 	  	 	700,000	 	  	 	5.708	% 	 	 	5.625	% 	 	 	99.891	% 	 	 	290	 	  	 	1,293	 	  	 	698,417	 	
10/9/2009	  	 	10/15/2019	 	  	 	700,000	 	  	 	5.967	% 	 	 	5.875	% 	 	 	99.931	% 	 	 	139	 	  	 	1,344	 	  	 	698,517	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	 	 	  	$	7,300,000	 	  	 	 	 	 	 	 	 	 	 	 	 	 	$	17,474	 	  	$	32,170	 	  	$	7,250,356	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Equity

 	  	Shares/Units
Outstanding
as of 6/30/2017	 	  	Common Stock
Equivalents	 	  	Equivalent
Value (2)	 	
Common Stock	  	 	154,308	 	  	 	154,308	 	  	$	18,982,970	 	
Common Operating Partnership Units	  	 	17,641	 	  	 	17,641	 	  	 	2,170,196	 	
5.25% Series B Cumulative Redeemable Preferred Stock (non-callable through March 27, 2018)	  	 	80	 	  	 	—  	 	  	 	200,000	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Equity	  	 	 	 	  	 	171,949	 	  	$	21,353,166	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Consolidated Debt	  	 	 	 	  	 	 	 	  	$	10,236,639	 	
Add:	  	 	 	 	  	 	 	 	  	 	 	 	
BXP’s share of unconsolidated joint venture debt (3)	  	 	 	 	  	 	 	 	  	 	317,724	 	
Less:	  	 	 	 	  	 	 	 	  	 	 	 	
Partners’ share of consolidated debt (4)	  	 	 	 	  	 	 	 	  	 	1,211,485	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
BXP’s Share of Debt (5)	  	 	 	 	  	 	 	 	  	$	9,342,878	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
Consolidated Market Capitalization	  	 	 	 	  	 	 	 	  	$	31,589,805	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	
BXP’s Share of Market Capitalization (5)	  	 	 	 	  	 	 	 	  	$	30,696,044	 	

(1)	All unsecured senior notes are rated A- (stable), BBB+ (stable) and Baa2 (positive) by S&P, Fitch and Moody’s, respectively.	
(2)	Values based on June 30, 2017 closing price of $123.02 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 17.	
(4)	Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 19.	
(5)	For the Company’s definitions, see pages 47-48.	
 
14

Table of Contents

SECOND QUARTER 2017
 
DEBT ANALYSIS (1)
as of June 30, 2017
(dollars in thousands)
Debt Maturities and Principal Payments

 	  	2017	 	 	2018	 	 	2019	 	 	2020	 	 	2021	 	 	Thereafter	 	 	Total	 	
Floating Rate Debt:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
Unsecured Line of Credit	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Unsecured Term Loan	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Floating Rate Debt	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Rate Debt:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
767 Fifth Avenue (The GM Building) (60% ownership)	  	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	2,300,000	 	 	$	2,300,000	 	
601 Lexington Avenue (55% ownership)	  	 	6,603	 	 	 	13,684	 	 	 	14,349	 	 	 	15,045	 	 	 	15,776	 	 	 	614,710	 	 	 	680,167	 	
New Dominion Technology Park, Building One	  	 	1,465	 	 	 	3,100	 	 	 	3,340	 	 	 	3,598	 	 	 	22,906	 	 	 	—  	 	 	 	34,409	 	
University Place	  	 	878	 	 	 	1,849	 	 	 	1,981	 	 	 	2,123	 	 	 	1,500	 	 	 	—  	 	 	 	8,331	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable	  	 	8,946	 	 	 	18,633	 	 	 	19,670	 	 	 	20,766	 	 	 	40,182	 	 	 	2,914,710	 	 	 	3,022,907	 	
Deferred Financing Costs, Net	  	 	(1,964	) 	 	 	(3,930	) 	 	 	(3,930	) 	 	 	(3,930	) 	 	 	(3,840	) 	 	 	(19,030	) 	 	 	(36,624	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable, Net	  	$	6,982	 	 	$	14,703	 	 	$	15,740	 	 	$	16,836	 	 	$	36,342	 	 	$	2,895,680	 	 	$	2,986,283	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Senior Notes, Face Amount	  	$	—  	 	 	$	850,000	 	 	$	700,000	 	 	$	700,000	 	 	$	850,000	 	 	$	4,200,000	 	 	$	7,300,000	 	
Discount Amortization	  	 	(1,334	) 	 	 	(2,696	) 	 	 	(2,503	) 	 	 	(2,528	) 	 	 	(2,063	) 	 	 	(6,350	) 	 	 	(17,474	) 	
Deferred Financing Costs, Net	  	 	(3,093	) 	 	 	(6,019	) 	 	 	(5,036	) 	 	 	(4,510	) 	 	 	(3,648	) 	 	 	(9,864	) 	 	 	(32,170	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Senior Notes, Net	  	$	(4,427	) 	 	$	841,285	 	 	$	692,461	 	 	$	692,962	 	 	$	844,289	 	 	$	4,183,786	 	 	$	7,250,356	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Fixed Rate Debt	  	$	2,555	 	 	$	855,988	 	 	$	708,201	 	 	$	709,798	 	 	$	880,631	 	 	$	7,079,466	 	 	$	10,236,639	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	$	2,555	 	 	$	855,988	 	 	$	708,201	 	 	$	709,798	 	 	$	880,631	 	 	$	7,079,466	 	 	$	10,236,639	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% of Consolidated Debt	  	 	0.03	% 	 	 	8.36	% 	 	 	6.92	% 	 	 	6.93	% 	 	 	8.60	% 	 	 	69.16	% 	 	 	100.00	% 	
Balloon Payments	  	$	—  	 	 	$	850,000	 	 	$	700,000	 	 	$	700,000	 	 	$	872,906	 	 	$	7,110,648	 	 	$	10,233,554	 	
Scheduled Principal Amortization	  	$	8,946	 	 	$	18,633	 	 	$	19,670	 	 	$	20,766	 	 	$	17,276	 	 	$	4,062	 	 	$	89,353	 	
GAAP Weighted Average Floating Rate Debt (2)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Weighted Average Fixed Rate Debt (2)	  	 	5.51	% 	 	 	3.89	% 	 	 	5.96	% 	 	 	5.70	% 	 	 	4.39	% 	 	 	3.78	% 	 	 	4.13	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total GAAP Weighted Average Rate (2)	  	 	5.51	% 	 	 	3.89	% 	 	 	5.96	% 	 	 	5.70	% 	 	 	4.39	% 	 	 	3.78	% 	 	 	4.13	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Stated Weighted Average Rate	  	 	5.44	% 	 	 	3.77	% 	 	 	5.87	% 	 	 	5.63	% 	 	 	4.32	% 	 	 	3.67	% 	 	 	4.03	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Credit Facility—Matures April 24, 2022

 	  	Facility	 	 	Outstanding at
6/30/2017	 	 	Letters of Credit	 	 	Remaining Capacity
at 6/30/2017	 	
Unsecured Line of Credit	  	$	1,500,000	 	 	$	—  	 	 	$	1,530	 	 	$	1,498,470	 	
Unsecured Term Loan	  	$	500,000	 	 	$	—  	 	 	 	N/A	 	 	$	500,000	 	
 	 	 	 	 	
Unsecured and Secured Debt Analysis	  	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	
 	  	% of Total Debt	 	 	Stated Weighted
Average Rate	 	 	GAAP Weighted
Average Rate	 	 	Weighted Average
Maturity (years)	 	
Unsecured Debt	  	 	70.83	% 	 	 	4.12	% 	 	 	4.21	% 	 	 	5.4	 	
Secured Debt	  	 	29.17	% 	 	 	3.79	% 	 	 	3.96	% 	 	 	8.7	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	 	100.00	% 	 	 	4.03	% 	 	 	4.13	% 	 	 	6.4	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Floating and Fixed Rate Debt Analysis

 	  	% of Total Debt	 	 	Stated Weighted
Average Rate	 	 	GAAP Weighted
Average Rate	 	 	Weighted Average
Maturity (years)	 	
Floating Rate Debt	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Fixed Rate Debt	  	 	100.00	% 	 	 	4.03	% 	 	 	4.13	% 	 	 	6.4	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	 	100.00	% 	 	 	4.03	% 	 	 	4.13	% 	 	 	6.4	 	

(1)	Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 17.	
(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.	
 
15

Table of Contents

SECOND QUARTER 2017
 
SENIOR UNSECURED DEBT COVENANT COMPLIANCE RATIOS
(dollars in thousands)
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 June 30, 2017 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 and the related calculations 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. This section also presents certain other indenture-related data that we believe assists investors in evaluating the Company’s unsecured debt securities.

 	  	 	 	 	June 30, 2017	 	
Total Assets:	  	 	 	 	 	 	 	 	
Capitalized Property Value (1)	  	 	 	 	 	$	23,896,187	 	
Cash and Cash Equivalents	  	 	 	 	 	 	492,435	 	
Investments in Securities	  	 	 	 	 	 	26,781	 	
Undeveloped Land, at Cost (including BXP’s share of unconsolidated joint ventures)	  	 	 	 	 	 	296,456	 	
Development in Process, at Cost (including BXP’s share of unconsolidated joint ventures)	  	 	 	 	 	 	1,611,719	 	
 	  	 	 	 	 	 	 	 	
Total Assets	  	 	 	 	 	$	26,323,578	 	

Unencumbered Assets	  	 	 	 	 	$	20,866,098	 	
 	  	 	 	 	 	 	 	 	
Consolidated Secured Debt (Fixed and Variable) (2)	  	 	 	 	 	$	3,073,830	 	
Unconsolidated Joint Venture Debt (3)	  	 	 	 	 	 	318,857	 	
Contingent Liabilities & Letters of Credit	  	 	 	 	 	 	7,379	 	
Unsecured Debt (4)	  	 	 	 	 	 	7,300,000	 	
 	  	 	 	 	 	 	 	 	
Total Outstanding Debt	  	 	 	 	 	$	10,700,066	 	
 	  	 	 	 	 	 	 	 	
Consolidated EBITDA:	  	 	 	 	 	 	 	 	
Income before Gains on Sales of Real Estate (per Consolidated Income Statement)	  	 	 	 	 	$	163,243	 	
Subtract: Income from Unconsolidated Joint Ventures (per Consolidated Income Statement)	  	 	 	 	 	 	(3,108	) 	
Subtract: Gains from Investments in Securities (per Consolidated Income Statement)	  	 	 	 	 	 	(730	) 	
Subtract: Gains from Early Extinguishments of Debt (per Consolidated Income Statement)	  	 	 	 	 	 	(14,354	) 	
Add: Interest Expense (per Consolidated Income Statement)	  	 	 	 	 	 	95,143	 	
Add: Depreciation and Amortization (per Consolidated Income Statement)	  	 	 	 	 	 	151,919	 	
 	  	 	 	 	 	 	 	 	
EBITDA	  	 	 	 	 	 	392,113	 	
Add: BXP’s share of unconsolidated joint venture EBITDA	  	 	 	 	 	 	16,290	 	
 	  	 	 	 	 	 	 	 	
Consolidated EBITDA	  	 	 	 	 	$	408,403	 	
 	  	 	 	 	 	 	 	 	
Adjusted Interest Expense:	  	 	 	 	 	 	 	 	
Interest Expense (per Consolidated Income Statement)	  	 	 	 	 	$	95,143	 	
Add: BXP’s share of unconsolidated joint venture interest expense	  	 	 	 	 	 	3,822	 	
Less: Amortization of financing costs (including BXP’s share of unconsolidated joint ventures)	  	 	 	 	 	 	(2,544	) 	
Less: Interest expense funded by construction loan draws	  	 	 	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	
Adjusted Interest Expense	  	 	 	 	 	$	96,421	 	
 	  	 	 	 	 	 	 	 	
 	  	Test	 	 	Actual	 	
Covenant Ratios and Related Data	  	 	 	 	 	 	 	 	
Total Outstanding Debt/Total Assets	  	 	Less than 60%	 	 	 	40.6	% 	
Secured Debt/Total Assets	  	 	Less than 50%	 	 	 	12.9	% 	
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	  	 	Greater than 1.50x	 	 	 	4.24	 	
Unencumbered Assets/ Unsecured Debt	  	 	Greater than 150%	 	 	 	285.8	% 	
 	  	 	 	 	 	 	 	 	
Unencumbered Consolidated Property EBITDA (5)	  	 	 	 	 	$	338,436	 	
 	  	 	 	 	 	 	 	 	
Unencumbered Interest Coverage (Unencumbered Consolidated Property EBITDA to Unsecured Interest Expense)	  	 	 	 	 	 	4.50	 	
 	  	 	 	 	 	 	 	 	
% of Unencumbered Consolidated Property EBITDA to Consolidated EBITDA	  	 	 	 	 	 	82.9	% 	
 	  	 	 	 	 	 	 	 	
# of in-service unencumbered properties	  	 	 	 	 	 	152	 	

(1)	Capitalized Property Value 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.	
(2)	Includes capital lease obligations of $50,923 and deferred financing costs, net of $36,624.	
(3)	Excludes aggregate deferred financing costs, net of $1,133.	
(4)	Excludes aggregate debt discount of $17,474 and deferred financing costs, net of $32,170.	
(5)	Unencumbered Consolidated Property EBITDA is a non-GAAP financial measure equal to Consolidated EBITDA excluding corporate revenue and expenses, encumbered consolidated Property EBITDA, EBITDA from land and properties that have either been disposed of or not fully placed in-service and items that, in the Company’s view, are not representative of a property’s standard ongoing performance, such as termination income and other similar items. For the three months ended June 30, 2017, these excluded amounts were approximately $(18,728), $76,490, $(2,038) and $14,243, respectively.	
 
16

Table of Contents

SECOND QUARTER 2017
 
UNCONSOLIDATED JOINT VENTURES (1)
as of June 30, 2017
(dollars in thousands)
Balance Sheet Information

Property	  	BXP’s Nominal
Ownership	 	 	Net Equity	 	  	Mortgage/
Construction
Loans
Payable, Net	 	
540 Madison Avenue	  	 	60.00	% 	 	$	68,325	 	  	$	71,888	 	
Market Square North	  	 	50.00	% 	 	 	(7,490	) 	  	 	61,006	 	
Metropolitan Square	  	 	20.00	% 	 	 	2,496	 	  	 	32,929	 	
901 New York Avenue	  	 	25.00	% 	 	 	(9,719	) 	  	 	55,915	 	
Wisconsin Place Parking Facility	  	 	33.33	% 	 	 	40,704	 	  	 	—  	 	
Annapolis Junction (2)	  	 	50.00	% 	 	 	19,392	 	  	 	44,745	 	
500 North Capitol Street, N.W.	  	 	30.00	% 	 	 	(3,396	) 	  	 	31,395	 	
Colorado Center	  	 	49.80	% 	 	 	514,747	 	  	 	—  	 	
The Hub on Causeway—Podium	  	 	50.00	% 	 	 	45,616	 	  	 	—  	 	
The Hub on Causeway—Hotel	  	 	50.00	% 	 	 	1,561	 	  	 	—  	 	
The Hub on Causeway—Residential	  	 	50.00	% 	 	 	23,799	 	  	 	—  	 	
1001 6th Street	  	 	50.00	% 	 	 	42,428	 	  	 	—  	 	
Dock 72	  	 	50.00	% 	 	 	55,646	 	  	 	—  	 	
1265 Main Street	  	 	50.00	% 	 	 	4,654	 	  	 	19,846	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	 	 	 	 	798,763	 	  	 	 	 	
Investments with deficit balances reflected within Other Liabilities	 	 	 	20,605	 	  	 	 	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	
Investment in Joint Ventures	  	 	 	 	 	$	819,368	 	  	$	317,724	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	
Debt Maturities and Principal Payments by Property

Property	  	2017	 	 	2018	 	 	2019	 	 	2020	 	 	2021	 	 	Thereafter	 	 	Total	 	
540 Madison Avenue (60%)	  	$	—  	 	 	$	72,000	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	72,000	 	
Market Square North (50%)	  	 	582	 	 	 	1,205	 	 	 	1,265	 	 	 	58,091	 	 	 	—  	 	 	 	—  	 	 	 	61,143	 	
901 New York Avenue (25%)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	970	 	 	 	1,095	 	 	 	54,185	 	 	 	56,250	 	
Metropolitan Square (20%)	  	 	280	 	 	 	586	 	 	 	620	 	 	 	31,501	 	 	 	 	 	 	 	—  	 	 	 	32,987	 	
500 North Capitol Street, N.W. (30%)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	31,500	 	 	 	31,500	 	
1265 Main Street (50%)	  	 	186	 	 	 	383	 	 	 	398	 	 	 	413	 	 	 	429	 	 	 	18,238	 	 	 	20,047	 	
Annapolis Junction Building One (50%)	  	 	256	 	 	 	19,519	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	19,775	(3) 	
Annapolis Junction Buildings Seven & Eight (50%)	  	 	163	 	 	 	326	 	 	 	17,723	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	18,212	 	
Annapolis Junction Building Six (50%)	  	 	135	 	 	 	6,808	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	6,943	 	
Dock 72 (50%)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	1,602	 	 	 	100,827	 	 	 	20,006	 	 	 	90,975	 	 	 	1,524	 	 	 	103,923	 	 	 	318,857	 	
Deferred Financing Costs, Net	  	 	(188	) 	 	 	(268	) 	 	 	(186	) 	 	 	(115	) 	 	 	(77	) 	 	 	(299	) 	 	 	(1,133	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage/Construction Loans Payable, Net	  	$	1,414	 	 	$	100,559	 	 	$	19,820	 	 	$	90,860	 	 	$	1,447	 	 	$	103,624	 	 	$	317,724	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Weighted Average Rate	  	 	4.55	% 	 	 	3.60	% 	 	 	3.75	% 	 	 	5.20	% 	 	 	3.54	% 	 	 	3.86	% 	 	 	4.17	% 	
% of Total Mortgage/Construction Loans Payable, Net	  	 	0.45	% 	 	 	31.65	% 	 	 	6.24	% 	 	 	28.60	% 	 	 	0.46	% 	 	 	32.60	% 	 	 	100.00	% 	
Balloon Payments	  	$	—  	 	 	$	98,032	 	 	$	17,397	 	 	$	88,387	 	 	$	—  	 	 	$	95,437	 	 	$	299,253	 	
Scheduled Amortization	  	$	1,602	 	 	$	2,795	 	 	$	2,609	 	 	$	2,588	 	 	$	1,524	 	 	$	8,486	 	 	$	19,604	 	
Floating and Fixed Rate Debt Analysis

 	  	% of Total Debt	 	 	Stated Weighted
Average Rate	 	 	GAAP Weighted
Average Rate	 	 	Weighted Average
Maturity (years)	 	
Floating Rate Debt	  	 	36.71	% 	 	 	3.41	% 	 	 	3.60	% 	 	 	1.2	 	
Fixed Rate Debt	  	 	63.29	% 	 	 	4.44	% 	 	 	4.50	% 	 	 	5.9	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Debt	  	 	100.00	% 	 	 	4.06	% 	 	 	4.17	% 	 	 	4.2	 	

(1)	Amounts represent the Company’s share based on its ownership percentage. For additional details, see page 47.	
(2)	Annapolis Junction includes four in-service properties and two undeveloped land parcels.	
(3)	On April 11, 2016, a notice of event of default was received from the lender because the loan to value ratio is not in compliance with the applicable covenant in the loan agreement. On October 17, 2016, the lender notified the joint venture that it has elected to charge the default rate on the loan. The default rate is defined as LIBOR plus 5.75% per annum. Subsequently, the cash flows generated from the property have become insufficient to fund debt service payments and capital improvements necessary to lease and operate the property and the joint venture is not prepared to fund additional cash shortfalls at this time. Consequently, the joint venture is not current on making debt service payments and remains in default. The loan has one, three-year extension option, subject to certain conditions including that no event of default exists or is ongoing.	
 
17

Table of Contents

SECOND QUARTER 2017
 
UNCONSOLIDATED JOINT VENTURES (continued)
(unaudited and dollars in thousands)
Results of Operations
for the three months ended June 30, 2017

 	 	540 Madison
Avenue	 	 	Market Square
North	 	 	Metropolitan
Square	 	 	901 New York
Avenue	 	 	Wisconsin Place
Parking Facility	 	 	Annapolis
Junction (1)	 	 	500 North Capitol
Street, N.W.	 	 	Colorado
Center	 	 	1265 Main
Street	 	 	Other Joint
Ventures (2)	 	 	Total
Unconsolidated
Joint Ventures	 	
REVENUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental (3)	 	$	7,044	 	 	$	3,424	 	 	$	4,695	 	 	$	6,900	 	 	$	1,011	 	 	$	1,888	 	 	$	2,905	 	 	$	14,572	 	 	$	994	 	 	$	282	 	 	$	43,715	 	
Operating recoveries	 	 	696	 	 	 	863	 	 	 	1,367	 	 	 	1,246	 	 	 	255	 	 	 	566	 	 	 	1,243	 	 	 	500	 	 	 	194	 	 	 	—  	 	 	 	6,930	 	
Straight-line rent	 	 	(635	) 	 	 	1,121	 	 	 	1,746	 	 	 	518	 	 	 	—  	 	 	 	212	 	 	 	88	 	 	 	1,282	 	 	 	—  	 	 	 	—  	 	 	 	4,332	 	
Fair value lease revenue	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	96	 	 	 	—  	 	 	 	—  	 	 	 	96	 	
Termination income	 	 	—  	 	 	 	—  	 	 	 	(13	) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(13	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	 	 	7,105	 	 	 	5,408	 	 	 	7,795	 	 	 	8,664	 	 	 	1,266	 	 	 	2,666	 	 	 	4,236	 	 	 	16,450	 	 	 	1,188	 	 	 	282	 	 	 	55,060	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	 	 	3,483	 	 	 	2,363	 	 	 	3,593	 	 	 	3,405	 	 	 	480	 	 	 	1,561	 	 	 	1,403	 	 	 	5,217	 	 	 	215	 	 	 	383	 	 	 	22,103	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET OPERATING INCOME/(LOSS)	 	 	3,622	 	 	 	3,045	 	 	 	4,202	 	 	 	5,259	 	 	 	786	 	 	 	1,105	 	 	 	2,833	 	 	 	11,233	 	 	 	973	 	 	 	(101	) 	 	 	32,957	 	
Interest	 	 	813	 	 	 	1,506	 	 	 	2,369	 	 	 	2,075	 	 	 	—  	 	 	 	1,163	 	 	 	1,116	 	 	 	—  	 	 	 	385	 	 	 	—  	 	 	 	9,427	 	
Depreciation and amortization	 	 	1,881	 	 	 	1,001	 	 	 	1,953	 	 	 	1,489	 	 	 	1,383	 	 	 	1,070	 	 	 	954	 	 	 	4,088	 	 	 	405	 	 	 	—  	 	 	 	14,224	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUBTOTAL	 	 	2,694	 	 	 	2,507	 	 	 	4,322	 	 	 	3,564	 	 	 	1,383	 	 	 	2,233	 	 	 	2,070	 	 	 	4,088	 	 	 	790	 	 	 	—  	 	 	 	23,651	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/(LOSS)	 	$	928	 	 	$	538	 	 	$	(120	) 	 	$	1,695	 	 	$	(597	) 	 	$	(1,128	) 	 	$	763	 	 	$	7,145	 	 	$	183	 	 	$	(101	) 	 	$	9,306	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s nominal ownership percentage	 	 	60.00	% 	 	 	50.00	% 	 	 	20.00	% 	 	 	25.00	% 	 	 	33.33	% 	 	 	50.00	% 	 	 	30.00	% 	 	 	49.80	% 	 	 	50.00	% 	 	 	50.00	% 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net income/(loss)	 	$	556	 	 	$	269	 	 	$	(24	) 	 	$	449	(4) 	 	$	(169	) 	 	$	(564	) 	 	$	229	 	 	$	3,558	 	 	$	91	 	 	$	(51	) 	 	$	4,344	 	
Basis differential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	(208	) 	 	$	—  	 	 	$	—  	 	 	$	(208	) 	
Straight-line rent	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	888	(5) 	 	 	—  	 	 	 	—  	 	 	 	888	 	
Fair value lease revenue	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	444	(5) 	 	 	—  	 	 	 	—  	 	 	 	444	 	
Termination income	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	407	 	 	 	—  	 	 	 	—  	 	 	 	407	 	
Depreciation and amortization	 	 	173	 	 	 	(2	) 	 	 	(5	) 	 	 	(6	) 	 	 	(7	) 	 	 	(4	) 	 	 	5	 	 	 	(2,917	)(5) 	 	 	(4	) 	 	 	—  	 	 	 	(2,767	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total basis differential (6)	 	 	173	 	 	 	(2	) 	 	 	(5	) 	 	 	(6	) 	 	 	(7	) 	 	 	(4	) 	 	 	5	 	 	 	(1,386	)(5) 	 	 	(4	) 	 	 	—  	 	 	 	(1,236	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income/(loss) from unconsolidated joint ventures	 	$	729	 	 	$	267	 	 	$	(29	) 	 	$	443	(4) 	 	$	(176	) 	 	$	(568	) 	 	$	234	 	 	$	2,172	 	 	$	87	 	 	$	(51	) 	 	$	3,108	 	
Gain on investment	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
BXP’s share of depreciation & amortization	 	 	1,026	 	 	 	521	 	 	 	425	 	 	 	1,151	(4) 	 	 	474	 	 	 	559	 	 	 	302	 	 	 	4,957	 	 	 	214	 	 	 	—  	 	 	 	9,629	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of Funds from Operations (FFO)	 	$	1,755	 	 	$	788	 	 	$	396	 	 	$	1,594	 	 	$	298	 	 	$	(9	) 	 	$	536	 	 	$	7,129	 	 	$	301	 	 	$	(51	) 	 	$	12,737	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of interest expense	 	$	488	 	 	$	753	 	 	$	474	 	 	$	997	(4) 	 	$	—  	 	 	$	582	 	 	$	335	 	 	$	—  	 	 	$	193	 	 	$	—  	 	 	$	3,822	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of amortization of financing costs	 	$	31	 	 	$	10	 	 	$	5	 	 	$	21	 	 	$	—  	 	 	$	28	 	 	$	4	 	 	$	—  	 	 	$	3	 	 	$	—  	 	 	$	102	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of capitalized interest	 	$	—  	 	 	$	—  	 	 	$	(6	) 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	(6	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of non-cash termination income adjustment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(fair value lease amounts)	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	—  	 	 	$	214	 	 	$	—  	 	 	$	—  	 	 	$	214	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of revenue (7)	 	$	4,263	 	 	$	2,704	 	 	$	1,559	 	 	$	4,163	(4) 	 	$	422	 	 	$	1,333	 	 	$	1,271	 	 	$	9,724	 	 	$	594	 	 	$	141	 	 	$	26,174	 	
BXP’s share of operating expenses	 	 	2,090	 	 	 	1,181	 	 	 	719	 	 	 	1,636	(4) 	 	 	160	 	 	 	781	 	 	 	421	 	 	 	2,598	 	 	 	107	 	 	 	191	 	 	 	9,884	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net operating income/(loss) (7)	 	 	2,173	 	 	 	1,523	 	 	 	840	 	 	 	2,527	(4) 	 	 	262	 	 	 	552	 	 	 	850	 	 	 	7,126	 	 	 	487	 	 	 	(50	) 	 	 	16,290	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of termination income	 	 	—  	 	 	 	—  	 	 	 	(3	) 	 	 	—  	(4) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	407	 	 	 	—  	 	 	 	—  	 	 	 	404	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net operating income/(loss)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(excluding termination income) (7)	 	 	2,173	 	 	 	1,523	 	 	 	843	 	 	 	2,527	(4) 	 	 	262	 	 	 	552	 	 	 	850	 	 	 	6,719	 	 	 	487	 	 	 	(50	) 	 	 	15,886	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of straight-line rent	 	 	(381	) 	 	 	560	 	 	 	349	 	 	 	249	(4) 	 	 	—  	 	 	 	106	 	 	 	26	 	 	 	1,526	 	 	 	—  	 	 	 	—  	 	 	 	2,435	 	
BXP’s share of fair value lease revenue	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	(4) 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	492	 	 	 	—  	 	 	 	—  	 	 	 	492	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of lease transaction costs that qualify as rent inducements	 	 	—  	 	 	 	194	 	 	 	—  	 	 	 	9	(4) 	 	 	—  	 	 	 	20	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	223	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net operating income/(loss) - cash (excluding termination income) (7)	 	$	2,554	 	 	$	1,157	 	 	$	494	 	 	$	2,287	(4) 	 	$	262	 	 	$	466	 	 	$	824	 	 	$	4,701	 	 	$	487	 	 	$	(50	) 	 	$	13,182	 	

(1)	Annapolis Junction includes four properties in service and two undeveloped land parcels.	
(2)	Includes The Hub on Causeway, 1001 6th Street and Dock 72.	
(3)	Includes approximately $68 of management services income and approximately $81 of interest and other income.	
(4)	Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.	
(5)	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.	
(6)	Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.	
(7)	Includes the Company’s share of approximately $39 of management services income and approximately $38 of interest and other income.	
 
18

Table of Contents

SECOND QUARTER 2017
 
CONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
Balance Sheets
as of June 30, 2017

BXP’s ownership percentage	  	 	60.00%	 	 	 	55.00%	 	  	 	95.00%	 	  	 	 	 	

 	  	 	 	 	Norges Joint Ventures	 	  	 	 	  	 	 	
 	  	767 Fifth Avenue
(The GM Building)(1)	 	 	Times Square Tower
601 Lexington Avenue
100 Federal Street
Atlantic Wharf Office(1)	 	  	Salesforce
Tower(1)	 	  	Total
Consolidated
Joint
Ventures	 	
ASSETS	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Real estate, net	  	$	3,394,075	 	 	$	2,212,147	 	  	$	920,658	 	  	$	6,526,880	 	
Cash and cash held in escrows	  	 	164,469	 	 	 	160,221	 	  	 	2,245	 	  	 	326,935	 	
Other assets	  	 	103,167	 	 	 	179,628	 	  	 	2,711	 	  	 	285,506	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total assets	  	$	3,661,711	 	 	$	2,551,996	 	  	$	925,614	 	  	$	7,139,321	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Mortgage notes payable, net	  	$	2,265,255	(2) 	 	$	678,577	 	  	$	—  	 	  	$	2,943,832	 	
Other liabilities	  	 	130,049	 	 	 	89,497	 	  	 	67,113	 	  	 	286,659	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total liabilities	  	 	2,395,304	 	 	 	768,074	 	  	 	67,113	 	  	 	3,230,491	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Equity:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Boston Properties, Inc.	  	 	760,735	 	 	 	660,696	 	  	 	833,340	 	  	 	2,254,771	 	
Noncontrolling interests	  	 	505,672	 	 	 	1,123,226	 	  	 	25,161	 	  	 	1,654,059	(3) 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total equity	  	 	1,266,407	 	 	 	1,783,922	 	  	 	858,501	 	  	 	3,908,830	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total liabilities and equity	  	$	3,661,711	 	 	$	2,551,996	 	  	$	925,614	 	  	$	7,139,321	 	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Partners’ share of consolidated debt	  	$	906,125	 	 	$	305,360	 	  	$	—  	 	  	$	1,211,485	 	

(1)	Certain balances contain amounts that eliminate in consolidation.	
(2)	See footnote 1 on page 8.	
(3)	Amount excludes preferred shareholders’ capital of approximately $0.1 million.	
 
19

Table of Contents

SECOND QUARTER 2017
 
CONSOLIDATED JOINT VENTURES (continued)
(unaudited and in thousands)
Income Statements
for the three months ended June 30, 2017

 	  	 	 	 	Norges Joint Ventures	 	 	 	 	 	 	 	
 	  	 	 	 	Times Square Tower	 	 	 	 	 	 	 	
 	  	 	 	 	601 Lexington Avenue	 	 	 	 	 	Total	 	
 	  	767 Fifth Avenue	 	 	100 Federal Street	 	 	 	 	 	Consolidated	 	
 	  	(The GM Building)	 	 	Atlantic Wharf Office	 	 	Salesforce Tower	 	 	Joint Ventures	 	
REVENUE	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	$	70,224	 	 	$	96,883	 	 	$	—  	 	 	$	167,107	 	
Straight-line rent	  	 	853	 	 	 	(8,148	) 	 	 	—  	 	 	 	(7,295	) 	
Fair value lease revenue	  	 	3,686	 	 	 	236	 	 	 	—  	 	 	 	3,922	 	
Termination income	  	 	6,264	 	 	 	—  	 	 	 	—  	 	 	 	6,264	 	
Parking and other	  	 	—  	 	 	 	1,287	 	 	 	—  	 	 	 	1,287	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	81,027	 	 	 	90,258	 	 	 	—  	 	 	 	171,285	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	28,814	 	 	 	34,282	 	 	 	—  	 	 	 	63,096	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET OPERATING INCOME	  	 	52,213	 	 	 	55,976	 	 	 	—  	 	 	 	108,189	 	
Management services income	  	 	(558	) 	 	 	(710	) 	 	 	—  	 	 	 	(1,268	) 	
Interest and other income	  	 	(59	) 	 	 	(334	) 	 	 	(8	) 	 	 	(401	) 	
Interest expense	  	 	23,321	 	 	 	7,686	 	 	 	—  	 	 	 	31,007	 	
Interest expense—outside members’ notes	  	 	7,078	 	 	 	—  	 	 	 	—  	 	 	 	7,078	 	
Fair value interest adjustment	  	 	(8,660	) 	 	 	—  	 	 	 	—  	 	 	 	(8,660	) 	
Depreciation and amortization	  	 	25,189	 	 	 	20,590	 	 	 	—  	 	 	 	45,779	 	
Gain from early extinguishment of debt	  	 	(14,606	) 	 	 	 	 	 	 	 	 	 	 	(14,606	) 	
Other	  	 	—  	 	 	 	39	 	 	 	—  	 	 	 	39	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUBTOTAL	  	 	31,705	 	 	 	27,271	 	 	 	(8	) 	 	 	58,968	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/(LOSS)	  	$	20,508	 	 	$	28,705	 	 	$	8	 	 	$	49,221	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s ownership percentage	  	 	60.00	% 	 	 	55.00	% 	 	 	95.00	% 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of NOI (1)	  	$	20,885	 	 	$	25,189	 	 	$	—  	 	 	$	46,074	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of NOI	  	$	31,328	 	 	$	30,787	 	 	$	—  	 	 	$	62,115	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unearned portion of capitalized fees (2)	  	$	108	 	 	$	494	 	 	$	5	 	 	$	607	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of partners’ noncontrolling interest (NCI):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	  	$	20,508	 	 	$	28,705	 	 	$	8	 	 	$	49,221	 	
Add depreciation & amortization—BXP’s basis difference	  	 	30	 	 	 	43	 	 	 	—  	 	 	 	73	 	
Special allocation—BXP’s basis	  	 	—  	 	 	 	(89	) 	 	 	—  	 	 	 	(89	) 	
Add partners’ share of outside members’ loan interest	  	 	7,078	 	 	 	—  	 	 	 	—  	 	 	 	7,078	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss) before interest allocation	  	$	27,616	 	 	$	28,659	 	 	$	8	 	 	$	56,283	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of net income before interest allocation (1)	  	$	11,046	 	 	$	12,896	 	 	$	—  	 	 	$	23,942	 	
Partners’ share of outside members’ loan interest (1)	  	 	(7,078	) 	 	 	—  	 	 	 	—  	 	 	 	(7,078	) 	
Allocation of management and other fees to non-controlling partners (1)	  	 	(762	) 	 	 	(769	) 	 	 	—  	 	 	 	(1,531	) 	
Accretion and adjustments (1)	  	 	—  	 	 	 	—  	 	 	 	(130	) 	 	 	(130	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ NCI (1)	  	$	3,206	 	 	$	12,127	 	 	$	(130	) 	 	$	15,203	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of partners’ share of FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	  	$	20,508	 	 	$	28,705	 	 	$	8	 	 	$	49,221	 	
Add depreciation & amortization	  	 	25,189	 	 	 	20,590	 	 	 	—  	 	 	 	45,779	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Entity FFO	  	$	45,697	 	 	$	49,295	 	 	$	8	 	 	$	95,000	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ NCI (1)	  	$	3,206	 	 	$	12,127	 	 	$	(130	) 	 	$	15,203	 	
Partners’ share of depreciation and amortization after BXP’s basis differential (1)	  	 	10,063	 	 	 	9,264	 	 	 	—  	 	 	 	19,327	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share FFO (1)	  	$	13,269	 	 	$	21,391	 	 	$	(130	) 	 	$	34,530	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of BXP’s share of FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net income/(loss) adjusted for partners’ NCI	  	$	17,302	 	 	$	16,578	 	 	$	138	 	 	$	34,018	 	
Depreciation & amortization—BXP’s basis difference	  	 	30	 	 	 	43	 	 	 	—  	 	 	 	73	 	
BXP’s share of depreciation & amortization	  	 	15,095	 	 	 	11,283	 	 	 	—  	 	 	 	26,378	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of FFO	  	$	32,427	 	 	$	27,904	 	 	$	138	 	 	$	60,469	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of select items (1):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of revenue	  	$	32,411	 	 	$	40,616	 	 	$	—  	 	 	$	73,027	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of interest expense	  	$	12,942	 	 	$	3,459	 	 	$	—  	 	 	$	16,401	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of fair value interest adjustment	  	$	(3,464	) 	 	$	—  	 	 	$	—  	 	 	$	(3,464	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of amortization of financing costs	  	$	170	 	 	$	36	 	 	$	—  	 	 	$	206	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of capitalized interest	  	$	18	 	 	$	220	 	 	$	—  	 	 	$	238	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts)	  	$	(210	) 	 	$	—  	 	 	$	—  	 	 	$	(210	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of non-cash gain on extinguishment of debt	  	$	5,878	 	 	$	—  	 	 	$	—  	 	 	$	5,878	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Partners’ share of NOI (1):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue	  	$	32,411	 	 	$	40,616	 	 	$	—  	 	 	$	73,027	 	
Less: Termination income	  	 	2,506	 	 	 	—  	 	 	 	—  	 	 	 	2,506	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding termination income)	  	 	29,905	 	 	 	40,616	 	 	 	—  	 	 	 	70,521	 	
Operating expenses	  	 	11,526	 	 	 	15,427	 	 	 	—  	 	 	 	26,953	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding termination income)	  	$	18,379	 	 	$	25,189	 	 	$	—  	 	 	$	43,568	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding termination income)	  	$	29,905	 	 	$	40,616	 	 	 	—  	 	 	$	70,521	 	
Less: Straight-line rent	  	 	341	 	 	 	(3,667	) 	 	 	—  	 	 	 	(3,326	) 	
Fair value lease revenue	  	 	1,474	 	 	 	106	 	 	 	—  	 	 	 	1,580	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	28,090	 	 	 	44,177	 	 	 	—  	 	 	 	72,267	 	
Less: Operating expenses	  	 	11,526	 	 	 	15,427	 	 	 	—  	 	 	 	26,953	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI—cash (excluding termination income)	  	$	16,564	 	 	$	28,750	 	 	$	—  	 	 	$	45,314	 	

(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.	
 
20

Table of Contents

SECOND QUARTER 2017
 
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO BOSTON PROPERTIES, INC. COMMON SHAREHOLDERS TO NET OPERATING INCOME (NOI)
(in thousands)

 	  	For the three months ended	 	
 	  	June 30, 2017	 	 	June 30, 2016	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	96,597	 	
Preferred dividends	  	 	2,625	 	 	 	2,589	 	
 	  	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	136,334	 	 	 	99,186	 	
Net income attributable to noncontrolling interests:	  	 	 	 	 	 	 	 	
Noncontrolling interest—common units of the Operating Partnership	  	 	15,473	 	 	 	11,357	 	
Noncontrolling interest in property partnerships	  	 	15,203	 	 	 	6,814	 	
 	  	 	 	 	 	 	 	 	
Net income	  	 	167,010	 	 	 	117,357	 	
Gains on sales of real estate	  	 	(3,767	) 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	117,357	 	
Add:	  	 	 	 	 	 	 	 	
Interest expense	  	 	95,143	 	 	 	105,003	 	
Depreciation and amortization	  	 	151,919	 	 	 	153,175	 	
Transaction costs	  	 	299	 	 	 	913	 	
General and administrative expense	  	 	27,141	 	 	 	25,418	 	
Subtract:	  	 	 	 	 	 	 	 	
Gains from early extinguishments of debt	  	 	(14,354	) 	 	 	—  	 	
Gains from investments in securities	  	 	(730	) 	 	 	(478	) 	
Interest and other income	  	 	(1,504	) 	 	 	(1,524	) 	
Income from unconsolidated joint ventures	  	 	(3,108	) 	 	 	(2,234	) 	
Development and management services income	  	 	(7,365	) 	 	 	(5,533	) 	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	 	410,684	 	 	 	392,097	 	
Add:	  	 	 	 	 	 	 	 	
BXP’s share of NOI from unconsolidated joint ventures	  	 	16,290	(1) 	 	 	10,672	 	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI from consolidated joint ventures	  	 	(46,074	)(2) 	 	 	(44,208	) 	
 	  	 	 	 	 	 	 	 	
BXP’s Share of NOI	  	 	380,900	 	 	 	358,561	 	
Subtract:	  	 	 	 	 	 	 	 	
Termination income	  	 	(13,601	) 	 	 	(7,654	) 	
BXP’s share of termination income from unconsolidated joint ventures	  	 	(404	)(1) 	 	 	(4	) 	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of termination income from consolidated joint ventures	  	 	2,506	(2) 	 	 	44	 	
 	  	 	 	 	 	 	 	 	
BXP’s Share of NOI (excluding termination income)	  	$	369,401	 	 	$	350,947	 	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	$	410,684	 	 	$	392,097	 	
Subtract:	  	 	 	 	 	 	 	 	
Termination income	  	 	(13,601	) 	 	 	(7,654	) 	
NOI from non Same Properties (excluding termination income) (3)	  	 	(9,282	) 	 	 	(12,292	) 	
 	  	 	 	 	 	 	 	 	
Same Property NOI (excluding termination income)	  	 	387,801	 	 	 	372,151	 	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI from consolidated joint ventures (excluding termination income)	  	 	(43,568	)(2) 	 	 	(44,164	) 	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income) (3)	  	 	(886	) 	 	 	1,367	 	
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income)	  	 	15,886	(1) 	 	 	10,668	 	
Subtract:	  	 	 	 	 	 	 	 	
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) (3)	  	 	(7,206	) 	 	 	(1,331	) 	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Same Property NOI (excluding termination income)	  	$	352,027	 	 	$	338,691	 	

(1)	For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.	
(2)	For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.	
(3)	Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, non Same Properties include properties that were sold prior to June 30, 2017 and therefore are no longer a part of the Company’s property portfolio.	
 
21

Table of Contents

SECOND QUARTER 2017
 
RECONCILIATION OF NET INCOME ATTRIBUTABLE TO BOSTON PROPERTIES, INC. COMMON SHAREHOLDERS TO NET OPERATING INCOME (NOI) - CASH
(in thousands)

 	  	For the three months ended	 	
 	  	June 30, 2017	 	 	June 30, 2016	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	96,597	 	
Preferred dividends	  	 	2,625	 	 	 	2,589	 	
 	  	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	136,334	 	 	 	99,186	 	
Net income attributable to noncontrolling interests:	  	 	 	 	 	 	 	 	
Noncontrolling interest—common units of the Operating Partnership	  	 	15,473	 	 	 	11,357	 	
Noncontrolling interest in property partnerships	  	 	15,203	 	 	 	6,814	 	
 	  	 	 	 	 	 	 	 	
Net income	  	 	167,010	 	 	 	117,357	 	
Gains on sales of real estate	  	 	(3,767	) 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	117,357	 	
Add:	  	 	 	 	 	 	 	 	
Interest expense	  	 	95,143	 	 	 	105,003	 	
Depreciation and amortization	  	 	151,919	 	 	 	153,175	 	
Transaction costs	  	 	299	 	 	 	913	 	
General and administrative expense	  	 	27,141	 	 	 	25,418	 	
Subtract:	  	 	 	 	 	 	 	 	
Gains from early extinguishments of debt	  	 	(14,354	) 	 	 	—  	 	
Gains from investments in securities	  	 	(730	) 	 	 	(478	) 	
Interest and other income	  	 	(1,504	) 	 	 	(1,524	) 	
Income from unconsolidated joint ventures	  	 	(3,108	) 	 	 	(2,234	) 	
Development and management services income	  	 	(7,365	) 	 	 	(5,533	) 	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	 	410,684	 	 	 	392,097	 	
Subtract:	  	 	 	 	 	 	 	 	
Straight-line rent	  	 	(3,060	) 	 	 	6,503	 	
Fair value lease revenue	  	 	(5,464	) 	 	 	(8,808	) 	
Termination income	  	 	(13,601	) 	 	 	(7,654	) 	
Add:	  	 	 	 	 	 	 	 	
Straight-line ground rent expense adjustment (1)	  	 	929	 	 	 	971	 	
Lease transaction costs that qualify as rent inducements (2)	  	 	115	 	 	 	2,200	 	
 	  	 	 	 	 	 	 	 	
NOI—cash (excluding termination income)	  	 	389,603	 	 	 	385,309	 	
Subtract:	  	 	 	 	 	 	 	 	
NOI—cash from non Same Properties (excluding termination income) (3)	  	 	(6,818	) 	 	 	(19,492	) 	
 	  	 	 	 	 	 	 	 	
Same Property NOI—cash (excluding termination income)	  	 	382,785	 	 	 	365,817	 	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI—cash from consolidated joint ventures (excluding termination income)	  	 	(45,314	) (4) 	 	 	(40,415	) 	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of NOI—cash from non Same Properties from consolidated joint ventures (excluding termination income) (3)	  	 	(882	) 	 	 	1,577	 	
BXP’s share of NOI—cash from unconsolidated joint ventures (excluding termination income)	  	 	13,182 	(5) 	 	 	8,881	 	
Subtract:	  	 	 	 	 	 	 	 	
BXP’s share of NOI—cash from non Same Properties from unconsolidated joint ventures (excluding termination income) (3)	  	 	(5,188	) 	 	 	(689	) 	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Same Property NOI—cash (excluding termination income)	  	$	344,583	 	 	$	335,171	 	

(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 $(531) and $(36) for the three months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, the Company has remaining lease payments aggregating approximately $27.1 million, all of which it expects to incur by the end of 2020 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 2020 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 12.	
(3)	Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, non Same Properties include dispositions that occurred prior to June 30, 2017 and therefore are no longer a part of the Company’s property portfolio.	
(4)	For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.	
(5)	For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.	
 
22

Table of Contents

SECOND QUARTER 2017
 
SAME PROPERTY NET OPERATING INCOME (NOI) BY REPORTABLE SEGMENT
(dollars in thousands)

 	  	Office (1)	 	 	Hotel & Residential	 	
 	  	For the three months ended	 	 	 	 	 	 	 	 	For the three months ended	 	  	 	 	 	 	 	
 	  	30-Jun-17	 	 	30-Jun-16	 	 	$ Change	 	 	% Change	 	 	30-Jun-17	 	 	30-Jun-16	 	  	$ Change	 	 	% Change	 	
Rental Revenue	  	$	612,298	 	 	$	582,547	 	 	 	 	 	 	 	 	 	 	$	17,585	 	 	$	16,896	 	  	 	 	 	 	 	 	 	
Less: Termination income	  	 	13,601	 	 	 	7,540	 	 	 	 	 	 	 	 	 	 	 	—  	 	 	 	—  	 	  	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	 	598,697	 	 	 	575,007	 	 	$	23,690	 	 	 	4.1	% 	 	 	17,585	 	 	 	16,896	 	  	$	689	 	 	 	4.1	% 	
Less: Operating expenses and real estate taxes	  	 	218,442	 	 	 	210,168	 	 	 	8,274	 	 	 	3.9	% 	 	 	10,039	 	 	 	9,584	 	  	 	455	 	 	 	4.7	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income) (3)	  	$	380,255	 	 	$	364,839	 	 	$	15,416	 	 	 	4.2	% 	 	$	7,546	 	 	$	7,312	 	  	$	234	 	 	 	3.2	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	$	598,697	 	 	$	575,007	 	 	 	 	 	 	 	 	 	 	$	17,585	 	 	$	16,896	 	  	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	  	 	6,050	 	 	 	7,663	 	 	 	(1,613	) 	 	 	(21.0	)% 	 	 	10	 	 	 	19	 	  	 	(9	) 	 	 	(47.4	)% 	
Add: Lease transaction costs that qualify as rent inducements (4)	  	 	115	 	 	 	377	 	 	 	(262	) 	 	 	(69.5	)% 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Subtotal	  	 	592,762	 	 	 	567,721	 	 	 	25,041	 	 	 	4.4	% 	 	 	17,575	 	 	 	16,877	 	  	 	698	 	 	 	4.1	% 	
Less: Operating expenses and real estate taxes	  	 	218,442	 	 	 	210,168	 	 	 	8,274	 	 	 	3.9	% 	 	 	10,039	 	 	 	9,584	 	  	 	455	 	 	 	4.7	% 	
Add: Straight-line ground rent expense (5)	  	 	929	 	 	 	971	 	 	 	(42	) 	 	 	(4.3	)% 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income)—cash	  	$	375,249	 	 	$	358,524	 	 	$	16,725	 	 	 	4.7	% 	 	$	7,536	 	 	$	7,293	 	  	$	243	 	 	 	3.3	% 	

 	  	Consolidated Total (1)	 	 	Unconsolidated Joint Ventures (BXP’s share)	 	
 	  	For the three months ended	 	 	 	 	 	 	 	 	For the three months ended	 	  	 	 	 	 	 	
 	  	30-Jun-17	 	 	30-Jun-16	 	 	$ Change	 	 	% Change	 	 	30-Jun-17	 	 	30-Jun-16	 	  	$ Change	 	 	% Change	 	
Rental Revenue	  	$	629,883	 	 	$	599,443	 	 	 	 	 	 	 	 	 	 	$	15,856	 	 	$	16,428	 	  	 	 	 	 	 	 	 	
Less: Termination income	  	 	13,601	 	 	 	7,540	 	 	 	 	 	 	 	 	 	 	 	(3	) 	 	 	4	 	  	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	 	616,282	 	 	 	591,903	 	 	$	24,379	 	 	 	4.1	% 	 	 	15,859	 	 	 	16,424	 	  	$	(565	) 	 	 	(3.4	)% 	
Less: Operating expenses and real estate taxes	  	 	228,481	 	 	 	219,752	 	 	 	8,729	 	 	 	4.0	% 	 	 	7,179	 	 	 	7,087	 	  	 	92	 	 	 	1.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income) (3)	  	$	387,801	 	 	$	372,151	 	 	$	15,650	 	 	 	4.2	% 	 	$	8,680	 	 	$	9,337	 	  	$	(657	) 	 	 	(7.0	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	$	616,282	 	 	$	591,903	 	 	 	 	 	 	 	 	 	 	$	15,859	 	 	$	16,424	 	  	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	  	 	6,060	 	 	 	7,682	 	 	 	(1,622	) 	 	 	(21.1	)% 	 	 	909	 	 	 	1,144	 	  	 	(235	) 	 	 	(20.5	)% 	
Add: Lease transaction costs that qualify as rent inducements (4)	  	 	115	 	 	 	377	 	 	 	(262	) 	 	 	(69.5	)% 	 	 	223	 	 	 	—  	 	  	 	223	 	 	 	100.0	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Subtotal	  	 	610,337	 	 	 	584,598	 	 	 	25,739	 	 	 	4.4	% 	 	 	15,173	 	 	 	15,280	 	  	 	(107	) 	 	 	(0.7	)% 	
Less: Operating expenses and real estate taxes	  	 	228,481	 	 	 	219,752	 	 	 	8,729	 	 	 	4.0	% 	 	 	7,179	 	 	 	7,087	 	  	 	92	 	 	 	1.3	% 	
Add: Straight-line ground rent expense (5)	  	 	929	 	 	 	971	 	 	 	(42	) 	 	 	(4.3	)% 	 	 	—  	 	 	 	—  	 	  	 	—  	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income)—cash (6)	  	$	382,785	 	 	$	365,817	 	 	$	16,968	 	 	 	4.6	% 	 	$	7,994	 	 	$	8,193	 	  	$	(199	) 	 	 	(2.4	)% 	

 	  	Partners’ share of Consolidated Joint Ventures	 	 	BXP’s Share (7)	 	
 	  	For the three months ended	 	 	 	 	 	 	 	 	For the three months ended	 	  	 	 	 	 	 	
 	  	30-Jun-17	 	 	30-Jun-16	 	 	$ Change	 	 	% Change	 	 	30-Jun-17	 	 	30-Jun-16	 	  	$ Change	 	 	% Change	 	
Rental Revenue	  	$	72,637	 	 	$	67,276	 	 	 	 	 	 	 	 	 	 	$	573,102	 	 	$	548,595	 	  	 	 	 	 	 	 	 	
Less: Termination income	  	 	2,506	 	 	 	(7	) 	 	 	 	 	 	 	 	 	 	 	11,092	 	 	 	7,551	 	  	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	 	70,131	 	 	 	67,283	 	 	$	2,848	 	 	 	4.2	% 	 	 	562,010	 	 	 	541,044	 	  	$	20,966	 	 	 	3.9	% 	
Less: Operating expenses and real estate taxes	  	 	25,677	 	 	 	24,486	 	 	 	1,191	 	 	 	4.9	% 	 	 	209,983	 	 	 	202,353	 	  	 	7,630	 	 	 	3.8	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income) (3)	  	$	44,454	 	 	$	42,797	 	 	$	1,657	 	 	 	3.9	% 	 	$	352,027	 	 	$	338,691	 	  	$	13,336	 	 	 	3.9	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Rental revenue (excluding termination income) (2)	  	$	70,131	 	 	$	67,283	 	 	 	 	 	 	 	 	 	 	$	562,010	 	 	$	541,044	 	  	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	  	 	(1,742	) 	 	 	3,958	 	 	 	(5,700	) 	 	 	(144.0	)% 	 	 	8,711	 	 	 	4,868	 	  	 	3,843	 	 	 	78.9	% 	
Add: Lease transaction costs that qualify as rent inducements (4)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	338	 	 	 	377	 	  	 	(39	) 	 	 	(10.3	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
Subtotal	  	 	71,873	 	 	 	63,325	 	 	 	8,548	 	 	 	13.5	% 	 	 	553,637	 	 	 	536,553	 	  	 	17,084	 	 	 	3.2	% 	
Less: Operating expenses and real estate taxes	  	 	25,677	 	 	 	24,486	 	 	 	1,191	 	 	 	4.9	% 	 	 	209,983	 	 	 	202,353	 	  	 	7,630	 	 	 	3.8	% 	
Add: Straight-line ground rent expense (5)	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	929	 	 	 	971	 	  	 	(42	) 	 	 	(4.3	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	
NOI (excluding termination income)—cash (6)	  	$	46,196	 	 	$	38,839	 	 	$	7,357	 	 	 	18.9	% 	 	$	344,583	 	 	$	335,171	 	  	$	9,412	 	 	 	2.8	% 	

(1)	Includes 100% share of consolidated joint ventures. Same Property consolidated joint venture properties includes (a) 767 Fifth Avenue (The GM Building), 601 Lexington Avenue (excluding the portion removed from the complex as part of a planned redevelopment) and Times Square Tower in New York City and (b) 100 Federal Street and Atlantic Wharf Office Building in Boston, MA.	
(2)	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.	
(3)	For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income), see page 21. For disclosures relating to the Company’s use of NOI, see page 48.	
(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 13.	
(5)	Excludes the straight-line impact of approximately $(531) and $(36) for the three months ended June 30, 2017 and 2016, 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 22.	
(6)	For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to NOI—cash (excluding termination income), see page 22. For disclosures relating to the Company’s use of NOI, see page 48.	
(7)	BXP’s Share represents consolidated plus the Company’ share of unconsolidated joint ventures less the partners’ share of consolidated joint ventures. For disclosures relating to the Company’s use of BXP’s Share, see page 47.	
 
23

Table of Contents

SECOND QUARTER 2017
 
RESIDENTIAL and HOTEL PERFORMANCE
Rental Rates and Occupancy

 	  	Second Quarter	 	 	Percent
Change	 	 	YTD	 	 	Percent
Change	 	 	
 	  	2017	 	 	 	 	 	2016	 	 	 	 	 	2017	 	 	 	 	 	2016	 	 	 	 	 	 	 	
The Avant at Reston Town Center (359 units)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reston, VA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Monthly Rental Rate (1)	  	$	2,386	 	 	 	 	 	 	$	2,367	 	 	 	0.8	% 	 	$	2,378	 	 	 	 	 	 	$	2,347	 	 	 	1.3	% 	 	 	 	
Average Rental Rate Per Occupied Square Foot (1)	  	$	2.64	 	 	 	 	 	 	$	2.60	 	 	 	1.5	% 	 	$	2.61	 	 	 	 	 	 	$	2.57	 	 	 	1.6	% 	 	 	 	
Average Physical Occupancy (1) (2)	  	 	95.9	% 	 	 	 	 	 	 	94.0	% 	 	 	2.0	% 	 	 	92.9	% 	 	 	 	 	 	 	93.4	% 	 	 	(0.5	)% 	 	 	 	
Average Economic Occupancy (2)	  	 	94.5	% 	 	 	 	 	 	 	93.9	% 	 	 	0.6	% 	 	 	92.2	% 	 	 	 	 	 	 	93.3	% 	 	 	(1.2	)% 	 	 	 	
The Lofts at Atlantic Wharf (86 units)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston, MA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Monthly Rental Rate (3)	  	$	4,280	 	 	 	 	 	 	$	4,150	 	 	 	3.1	% 	 	$	4,224	 	 	 	 	 	 	$	4,153	 	 	 	1.7	% 	 	 	 	
Average Rental Rate Per Occupied Square Foot (3)	  	$	4.71	 	 	 	 	 	 	$	4.59	 	 	 	2.6	% 	 	$	4.69	 	 	 	 	 	 	$	4.57	 	 	 	2.6	% 	 	 	 	
Average Physical Occupancy (2) (3)	  	 	95.4	% 	 	 	 	 	 	 	95.4	% 	 	 	—  	 	 	 	94.6	% 	 	 	 	 	 	 	96.1	% 	 	 	(1.6	)% 	 	 	 	
Average Economic Occupancy (2)	  	 	96.9	% 	 	 	 	 	 	 	96.4	% 	 	 	0.5	% 	 	 	95.3	% 	 	 	 	 	 	 	97.6	% 	 	 	(2.4	)% 	 	 	 	
Boston Marriott Cambridge (433 rooms)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cambridge, MA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Occupancy	  	 	85.9	% 	 	 	(4	) 	 	 	84.3	% 	 	 	1.9	% 	 	 	76.3	% 	 	 	(4	) 	 	 	79.7	% 	 	 	(4.3	)% 	 	 	 	
Average Daily Rate	  	$	304.82	 	 	 	(4	) 	 	$	299.42	 	 	 	1.8	% 	 	$	268.01	 	 	 	(4	) 	 	$	263.61	 	 	 	1.7	% 	 	 	 	
Revenue per available room	  	$	261.98	 	 	 	(4	) 	 	$	252.34	 	 	 	3.8	% 	 	$	204.37	 	 	 	(4	) 	 	$	210.21	 	 	 	(2.8	)% 	 	 	 	
Net Operating Income (dollars in thousands) (5)

 	  	Residential	 	 	Hotel	 	 	
 	  	Second Quarter	 	 	Percent
Change	 	 	Second Quarter	 	  	Percent
Change	 	 	
 	  	2017	 	 	2016	 	 	 	 	 	2017	 	 	2016	 	  	 	 	 	 	 	
Rental Revenue	  	$	4,210	(6) 	 	$	4,088	(6) 	 	 	3.0	% 	 	$	13,375	 	 	$	12,808	 	  	 	4.4	% 	 	 	 	
Less: Operating expenses and real estate taxes	  	 	1,635	 	 	 	1,606	 	 	 	1.8	% 	 	 	8,404	 	 	 	7,978	 	  	 	5.3	% 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Net Operating Income	  	$	2,575	(6) 	 	$	2,482	(6) 	 	 	3.7	% 	 	$	4,971	 	 	$	4,830	 	  	 	2.9	% 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Rental Revenue	  	$	4,210	(6) 	 	$	4,088	(6) 	 	 	 	 	 	$	13,375	 	 	$	12,808	 	  	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	  	 	13	 	 	 	18	 	 	 	(27.8	)% 	 	 	(3	) 	 	 	1	 	  	 	(400.0	)% 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Subtotal	  	 	4,197	 	 	 	4,070	 	 	 	3.1	% 	 	 	13,378	 	 	 	12,807	 	  	 	4.5	% 	 	 	 	
Less: Operating expenses and real estate taxes	  	 	1,635	 	 	 	1,606	 	 	 	1.8	% 	 	 	8,404	 	 	 	7,978	 	  	 	5.3	% 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	 	 	 	
Net Operating Income—cash basis	  	$	2,562	(6) 	 	$	2,464	(6) 	 	 	4.0	% 	 	$	4,974	 	 	$	4,829	 	  	 	3.0	% 	 	 	 	

(1)	Excludes 26,179 square feet of retail space which is 100% leased.	
(2)	For disclosures related to the Company’s definition of Average Physical Occupancy and Average Economic Occupancy, see page 47.	
(3)	Excludes 9,617 square feet of retail space which is 100% leased.	
(4)	The hotel is undergoing a room renovation project, on all of its 433 rooms, which is near substantial completion. For additional information, see page 25.	
(5)	For disclosures related to the Company’s definition of Net Operating Income, see page 48.	
(6)	Includes 35,796 square feet of retail space, which had revenue of approximately $531 and $483 for the three months ended June 30, 2017 and 2016, respectively.	
 
24

Table of Contents

SECOND QUARTER 2017
 
CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS and LEASING COMMISSIONS
(dollars in thousands, except PSF amounts)
Capital Expenditures

 	  	Q2 2017	 	 	Q1 2017	 	 	2016	 	 	2015	 	 	2014	 	
Maintenance capital expenditures	  	$	11,643	 	 	$	10,677	 	 	$	59,838	 	 	$	56,383	 	 	$	45,618	 	
Partners’ share of maintenance capital expenditures from consolidated joint ventures	  	 	(1,004	) 	 	 	(2,129	) 	 	 	(2,569	) 	 	 	(5,565	) 	 	 	(4,377	) 	
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures	  	 	17	 	 	 	211	 	 	 	1,029	 	 	 	1,653	 	 	 	1,369	 	
Hotel improvements, equipment upgrades and replacements (1)	  	 	2,502	 	 	 	6,231	 	 	 	6,801	 	 	 	2,430	 	 	 	2,894	 	
Planned capital expenditures associated with acquisition properties	  	 	—  	 	 	 	—  	 	 	 	87	 	 	 	6,914	 	 	 	14,652	 	
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated joint ventures	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	(845	) 	 	 	(1,565	) 	
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated joint ventures	  	 	396	 	 	 	62	 	 	 	230	 	 	 	—  	 	 	 	—  	 	
Repositioning capital expenditures (2)	  	 	39,582	 	 	 	30,722	 	 	 	58,446	 	 	 	9,744	 	 	 	—  	 	
Partners’ share of repositioning capital expenditures from consolidated joint ventures	  	 	(9,357	) 	 	 	(5,740	) 	 	 	(2,746	) 	 	 	—  	 	 	 	—  	 	
BXP’s share of repositioning capital expenditures from unconsolidated joint ventures (3)	  	 	105	 	 	 	41	 	 	 	494	 	 	 	76	 	 	 	—  	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total BXP’s Share of Capital Expenditures	  	$	43,884	 	 	$	40,075	 	 	$	121,610	 	 	$	70,790	 	 	$	58,591	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2nd Generation Tenant Improvements and Leasing Commissions (4)

 	  	Q2 2017	 	  	Q1 2017	 	  	2016	 	  	2015	 	  	2014	 	
Square feet	  	 	1,340,600	 	  	 	914,880	 	  	 	4,970,991	 	  	 	5,204,123	 	  	 	3,936,046	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Tenant improvements and lease commissions PSF	  	$	63.96	 	  	$	55.92	 	  	$	62.04	 	  	$	45.40	 	  	$	29.60	 	

(1)	Includes capital expenditures related to a room renovation project totaling approximately $2,300 for the quarter ended Q2 2017 and $8,800 in prior periods.	
(2)	Q2 2017 amount includes capital expenditures related to the repositioning activities designed to enhance revenue potential at 1330 Connecticut Avenue in Washington, DC, 100 Federal Street (55% ownership) and Prudential Center Retail Improvements in Boston, MA, and 399 Park Avenue and 767 Fifth Avenue (the GM Building) (60% ownership) in New York City.	
(3)	Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at Metropolitan Square in Washington, DC.	
(4)	Includes 100% of unconsolidated joint ventures.	
 
25

Table of Contents

SECOND QUARTER 2017
 
PORTFOLIO OVERVIEW
for the three months ended June 30, 2017
(dollars in thousands)
Rentable Square Footage of In-Service Properties by Location and Unit Type (1) (2)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Geographic Area	  	Office	 	 	Retail	 	 	Residential	 	 	Hotel	 	 	Total	 	
Boston	  	 	12,634,737	 	 	 	863,587	 	 	 	77,480	 	 	 	330,000	 	 	 	13,905,804	 	
New York	  	 	11,230,735	 	 	 	378,910	 	 	 	—  	 	 	 	—  	 	 	 	11,609,645	 	
San Francisco and Los Angeles	  	 	6,847,612	 	 	 	354,782	 	 	 	—  	 	 	 	—  	 	 	 	7,202,394	 	
Washington, DC	  	 	9,896,422	 	 	 	692,167	 	 	 	329,195	 	 	 	—  	 	 	 	10,917,784	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	40,609,506	 	 	 	2,289,446	 	 	 	406,675	 	 	 	330,000	 	 	 	43,635,627	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% of Total	  	 	93.1	% 	 	 	5.2	% 	 	 	0.9	% 	 	 	0.8	% 	 	 	100.0	% 	
Rentable Square Footage and Rental Revenue of In-Service Properties by Unit Type (1) (2)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	Rental Revenue	 	  	 	 	
Unit Type	  	Square Feet	 	  	Consolidated	 	  	 	 	 	Partners’ share
from Consolidated
Joint Ventures (3)	 	 	BXP’s share
from Unconsolidated
Joint Ventures (4)	 	  	Total	 	  	% of Total	 	
Office	  	 	40,609,506	 	  	$	556,601	 	  	 	 	 	 	$	(65,524	) 	 	$	22,834	 	  	$	513,911	 	  	 	85.3	% 	
Retail	  	 	2,289,446	 	  	 	49,664	 	  	 	 	 	 	 	(6,621	) 	 	 	950	 	  	 	43,993	 	  	 	7.3	% 	
Residential	  	 	406,675	 	  	 	3,521	 	  	 	 	 	 	 	—  	 	 	 	—  	 	  	 	3,521	 	  	 	0.6	% 	
Hotel	  	 	330,000	 	  	 	13,294	 	  	 	(5	) 	 	 	—  	 	 	 	—  	 	  	 	13,294	 	  	 	2.2	% 	
Parking and other	  	 	N/A	 	  	 	26,462	 	  	 	(6	) 	 	 	(882	) 	 	 	2,313	 	  	 	27,893	 	  	 	4.6	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	43,635,627	 	  	$	649,542	 	  	 	 	 	 	$	(73,027	) 	 	$	26,097	 	  	$	602,612	 	  	 	100.0	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Rentable Square Footage of In-Service Same Properties by Unit Type (1) (2) (7)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Properties	  	Office	 	 	Retail	 	 	Residential	 	 	Hotel	 	 	Total	 	
Square Feet	  	 	38,213,530	 	 	 	2,214,729	 	 	 	406,675	 	 	 	330,000	 	 	 	41,164,934	 	
% of Properties In-Service	  	 	94.1	% 	 	 	96.7	% 	 	 	100.0	% 	 	 	100.0	% 	 	 	94.3	% 	
Percentage of BXP’s Share of Net Operating Income (excluding termination income) by Location and Type of Property (8)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Geographic Area	  	Office	 	 	Residential	 	 	Hotel	 	 	Total	 	
Boston	  	 	29.7	% 	 	 	0.2	% 	 	 	1.3	% 	 	 	31.2	% 	
New York	  	 	30.5	% 	 	 	—  	 	 	 	—  	 	 	 	30.5	% 	
San Francisco and Los Angeles	  	 	18.0	% 	 	 	—  	 	 	 	—  	 	 	 	18.0	% 	
Washington, DC	  	 	19.8	% 	 	 	0.5	% 	 	 	—  	 	 	 	20.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	98.0	% 	 	 	0.7	% 	 	 	1.3	% 	 	 	100.0	% 	

 	 	 	 	 	 	 	 	 	 	 	 	 	
Geographic Area	  	CBD	 	 	Suburban	 	 	Total	 	
Boston	  	 	24.6	% 	 	 	6.6	% 	 	 	31.2	% 	
New York	  	 	27.8	% 	 	 	2.7	% 	 	 	30.5	% 	
San Francisco and Los Angeles	  	 	14.6	% 	 	 	3.4	% 	 	 	18.0	% 	
Washington, DC	  	 	8.6	% 	 	 	11.7	% 	 	 	20.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	75.6	% 	 	 	24.4	% 	 	 	100.0	% 	

(1)	For the definition of In-Service Properties and related disclosures, see page 48.	
(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 27-29.	
(3)	For additional information, see page 20.	
(4)	For additional information, see page 18.	
(5)	Excludes approximately $81 of revenue from retail tenants that is included in Retail above.	
(6)	Includes approximately $1,800 of other income.	
(7)	Pages 27-29 indicate by footnote the properties that are not included as part of Same Properties.	
(8)	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 21. For disclosures relating to the Company’s use of BXP’s Share of NOI (excluding termination income), see pages 47-48.	
 
26

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE PROPERTY LISTING
as of June 30, 2017

 	  	Sub Market	  	Number of
Buildings	 	  	Square Feet	 	  	Leased % (1)	 	 	Annualized
Rental Obligations
Per Leased SF (2)	 	  	Encumbered
with secured
debt
(Y/N)	 	  	Central Business
District (CBD) or
Suburban (S)	 	
Boston	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Office	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
200 Clarendon Street	  	CBD Boston MA	  	 	1	 	  	 	1,751,028	 	  	 	84.0	% 	 	$	64.11	 	  	 	N	 	  	 	CBD	 	
100 Federal Street (55% ownership)	  	CBD Boston MA	  	 	1	 	  	 	1,241,458	 	  	 	93.4	% 	 	 	53.57	 	  	 	N	 	  	 	CBD	 	
800 Boylston Street - The Prudential Center	  	CBD Boston MA	  	 	1	 	  	 	1,235,777	 	  	 	97.9	% 	 	 	59.97	 	  	 	N	 	  	 	CBD	 	
111 Huntington Avenue - The Prudential Center	  	CBD Boston MA	  	 	1	 	  	 	860,455	 	  	 	97.3	% 	 	 	63.02	 	  	 	N	 	  	 	CBD	 	
Atlantic Wharf Office (55% ownership)	  	CBD Boston MA	  	 	1	 	  	 	793,827	 	  	 	100.0	% 	 	 	68.97	 	  	 	N	 	  	 	CBD	 	
(3) Prudential Center (retail shops)	  	CBD Boston MA	  	 	1	 	  	 	547,962	 	  	 	95.3	% 	 	 	81.56	 	  	 	N	 	  	 	CBD	 	
101 Huntington Avenue - The Prudential Center	  	CBD Boston MA	  	 	1	 	  	 	505,583	 	  	 	91.7	% 	 	 	48.03	 	  	 	N	 	  	 	CBD	 	
(3) Star Market at the Prudential Center	  	CBD Boston MA	  	 	1	 	  	 	57,235	 	  	 	100.0	% 	 	 	54.37	 	  	 	N	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	8	 	  	 	6,993,325	 	  	 	93.2	% 	 	$	62.11	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
355 Main Street	  	East Cambridge MA	  	 	1	 	  	 	265,342	 	  	 	100.0	% 	 	$	71.70	 	  	 	N	 	  	 	CBD	 	
90 Broadway	  	East Cambridge MA	  	 	1	 	  	 	223,771	 	  	 	100.0	% 	 	 	52.85	 	  	 	N	 	  	 	CBD	 	
255 Main Street	  	East Cambridge MA	  	 	1	 	  	 	215,629	 	  	 	100.0	% 	 	 	55.60	 	  	 	N	 	  	 	CBD	 	
300 Binney Street	  	East Cambridge MA	  	 	1	 	  	 	195,191	 	  	 	100.0	% 	 	 	53.30	 	  	 	N	 	  	 	CBD	 	
150 Broadway	  	East Cambridge MA	  	 	1	 	  	 	177,226	 	  	 	100.0	% 	 	 	47.53	 	  	 	N	 	  	 	CBD	 	
105 Broadway	  	East Cambridge MA	  	 	1	 	  	 	152,664	 	  	 	100.0	% 	 	 	61.47	 	  	 	N	 	  	 	CBD	 	
325 Main Street	  	East Cambridge MA	  	 	1	 	  	 	115,361	 	  	 	100.0	% 	 	 	47.99	 	  	 	N	 	  	 	CBD	 	
250 Binney Street	  	East Cambridge MA	  	 	1	 	  	 	67,362	 	  	 	100.0	% 	 	 	43.40	 	  	 	N	 	  	 	CBD	 	
University Place	  	Mid-Cambridge MA	  	 	1	 	  	 	195,282	 	  	 	100.0	% 	 	 	47.80	 	  	 	Y	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	9	 	  	 	1,607,828	 	  	 	100.0	% 	 	$	55.27	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Bay Colony Corporate Center	  	Route 128 Mass Turnpike MA	  	 	4	 	  	 	995,699	 	  	 	78.3	% 	 	$	39.32	 	  	 	N	 	  	 	S	 	
Reservoir Place	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	526,985	 	  	 	99.0	% 	 	 	35.44	 	  	 	N	 	  	 	S	 	
140 Kendrick Street	  	Route 128 Mass Turnpike MA	  	 	3	 	  	 	380,987	 	  	 	100.0	% 	 	 	37.95	 	  	 	N	 	  	 	S	 	
Weston Corporate Center	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	356,995	 	  	 	100.0	% 	 	 	52.46	 	  	 	N	 	  	 	S	 	
Waltham Weston Corporate Center	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	301,667	 	  	 	93.4	% 	 	 	36.72	 	  	 	N	 	  	 	S	 	
230 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	298,890	 	  	 	85.9	% 	 	 	36.12	 	  	 	N	 	  	 	S	 	
200 West Street	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	256,245	 	  	 	99.3	% 	 	 	36.81	 	  	 	N	 	  	 	S	 	
(4) 10 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	241,460	 	  	 	96.6	% 	 	 	47.18	 	  	 	N	 	  	 	S	 	
77 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	209,707	 	  	 	100.0	% 	 	 	47.63	 	  	 	N	 	  	 	S	 	
(4)(5) 1265 Main Street (50% ownership)	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	114,969	 	  	 	100.0	% 	 	 	43.86	 	  	 	Y	 	  	 	S	 	
(4) Reservoir Place North	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	73,258	 	  	 	0.0	% 	 	 	—  	 	  	 	N	 	  	 	S	 	
195 West Street	  	Route 128 Mass Turnpike MA	  	 	1	 	  	 	63,500	 	  	 	100.0	% 	 	 	40.81	 	  	 	N	 	  	 	S	 	
Quorum Office Park	  	Route 128 Northwest MA	  	 	2	 	  	 	267,527	 	  	 	90.0	% 	 	 	19.47	 	  	 	N	 	  	 	S	 	
Lexington Office Park	  	Route 128 Northwest MA	  	 	2	 	  	 	166,606	 	  	 	71.2	% 	 	 	27.03	 	  	 	N	 	  	 	S	 	
91 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	119,216	 	  	 	93.2	% 	 	 	27.78	 	  	 	N	 	  	 	S	 	
201 Spring Street	  	Route 128 Northwest MA	  	 	1	 	  	 	106,300	 	  	 	100.0	% 	 	 	37.82	 	  	 	N	 	  	 	S	 	
33 Hayden Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	80,872	 	  	 	100.0	% 	 	 	43.26	 	  	 	N	 	  	 	S	 	
32 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	69,154	 	  	 	100.0	% 	 	 	28.28	 	  	 	N	 	  	 	S	 	
164 Lexington Road	  	Route 128 Northwest MA	  	 	1	 	  	 	64,140	 	  	 	0.0	% 	 	 	—  	 	  	 	N	 	  	 	S	 	
100 Hayden Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	55,924	 	  	 	100.0	% 	 	 	41.63	 	  	 	N	 	  	 	S	 	
181 Spring Street	  	Route 128 Northwest MA	  	 	1	 	  	 	55,793	 	  	 	100.0	% 	 	 	31.13	 	  	 	N	 	  	 	S	 	
92 Hayden Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	31,100	 	  	 	100.0	% 	 	 	41.81	 	  	 	N	 	  	 	S	 	
17 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	 	  	 	30,000	 	  	 	100.0	% 	 	 	50.68	 	  	 	N	 	  	 	S	 	
(3) The Point	  	Route 128 Northwest MA	  	 	1	 	  	 	16,300	 	  	 	84.7	% 	 	 	52.44	 	  	 	N	 	  	 	S	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	31	 	  	 	4,883,294	 	  	 	89.4	% 	 	$	38.47	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total Boston Office:	  	 	48	 	  	 	13,484,447	 	  	 	92.6	% 	 	$	52.91	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Residential	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
The Lofts at Atlantic Wharf (86 units)	  	CBD Boston MA	  	 	1	 	  	 	87,097	 	  	 	 	 	 	 	 	 	  	 	N	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total Boston Residential:	  	 	1	 	  	 	87,097	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Hotel	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Boston Marriott Cambridge (433 rooms)	  	East Cambridge MA	  	 	1	 	  	 	334,260	 	  	 	 	 	 	 	 	 	  	 	N	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total Boston Hotel:	  	 	1	 	  	 	334,260	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total Boston:	  	 	50	 	  	 	13,905,804	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	

(1)	Represents signed leases for which revenue recognition has commenced in accordance with GAAP.	
(2)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(3)	This is a retail property.	
(4)	Not included in Same Property analysis.	
(5)	This is an unconsolidated joint venture property.	
 
27

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE PROPERTY LISTING (continued)
as of June 30, 2017

 	  	Sub Market	  	Number of
Buildings	 	  	Square Feet	 	  	Leased % (1)	 	 	Annualized
Rental Obligations
Per Leased SF (2)	 	  	Encumbered
with secured
debt (Y/N)	 	  	Central Business
District (CBD) or
Suburban (S)	 	
New York	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Office	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
767 Fifth Avenue (The GM Building) (60% ownership)	  	Plaza District NY	  	 	1	 	  	 	1,847,237	 	  	 	92.9	% 	 	$	150.17	 	  	 	Y	 	  	 	CBD	 	
399 Park Avenue	  	Park Avenue NY	  	 	1	 	  	 	1,713,251	 	  	 	86.9	% 	 	 	89.34	 	  	 	N	 	  	 	CBD	 	
(3) 601 Lexington Avenue (55% ownership)	  	Park Avenue NY	  	 	1	 	  	 	1,437,044	 	  	 	98.7	% 	 	 	96.14	 	  	 	Y	 	  	 	CBD	 	
599 Lexington Avenue	  	Park Avenue NY	  	 	1	 	  	 	1,059,041	 	  	 	94.3	% 	 	 	88.54	 	  	 	N	 	  	 	CBD	 	
Times Square Tower (55% ownership)	  	Times Square NY	  	 	1	 	  	 	1,252,191	 	  	 	96.2	% 	 	 	78.57	 	  	 	N	 	  	 	CBD	 	
250 West 55th Street	  	Times Square / West Side NY	  	 	1	 	  	 	980,927	 	  	 	86.2	% 	 	 	87.30	 	  	 	N	 	  	 	CBD	 	
510 Madison Avenue	  	Fifth/Madison Avenue NY	  	 	1	 	  	 	355,598	 	  	 	100.0	% 	 	 	124.90	 	  	 	N	 	  	 	CBD	 	
(4) 540 Madison Avenue (60% ownership)	  	Fifth/Madison Avenue NY	  	 	1	 	  	 	283,715	 	  	 	92.6	% 	 	 	101.11	 	  	 	Y	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	8	 	  	 	8,929,004	 	  	 	92.9	% 	 	$	103.14	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
One Tower Center	  	East Brunswick NJ	  	 	1	 	  	 	412,997	 	  	 	21.7	% 	 	$	32.11	 	  	 	N	 	  	 	S	 	
510 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	234,160	 	  	 	100.0	% 	 	 	34.50	 	  	 	N	 	  	 	S	 	
210 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	159,468	 	  	 	100.0	% 	 	 	37.37	 	  	 	N	 	  	 	S	 	
206 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	161,763	 	  	 	100.0	% 	 	 	31.79	 	  	 	N	 	  	 	S	 	
212 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	151,547	 	  	 	86.9	% 	 	 	37.07	 	  	 	N	 	  	 	S	 	
214 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	148,942	 	  	 	61.2	% 	 	 	35.42	 	  	 	N	 	  	 	S	 	
506 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	140,312	 	  	 	27.7	% 	 	 	40.05	 	  	 	N	 	  	 	S	 	
508 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	134,433	 	  	 	100.0	% 	 	 	34.42	 	  	 	N	 	  	 	S	 	
202 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	134,381	 	  	 	82.5	% 	 	 	38.06	 	  	 	N	 	  	 	S	 	
(5) 804 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	130,000	 	  	 	100.0	% 	 	 	37.10	 	  	 	N	 	  	 	S	 	
504 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	121,990	 	  	 	99.4	% 	 	 	30.75	 	  	 	N	 	  	 	S	 	
101 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	121,620	 	  	 	100.0	% 	 	 	36.35	 	  	 	N	 	  	 	S	 	
502 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	121,460	 	  	 	71.8	% 	 	 	35.85	 	  	 	N	 	  	 	S	 	
701 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	120,000	 	  	 	100.0	% 	 	 	39.76	 	  	 	N	 	  	 	S	 	
104 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	102,830	 	  	 	39.2	% 	 	 	36.41	 	  	 	N	 	  	 	S	 	
(5) 103 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	96,332	 	  	 	83.4	% 	 	 	28.90	 	  	 	N	 	  	 	S	 	
105 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	69,955	 	  	 	56.3	% 	 	 	33.04	 	  	 	N	 	  	 	S	 	
302 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	64,926	 	  	 	100.0	% 	 	 	33.70	 	  	 	N	 	  	 	S	 	
211 Carnegie Center	  	Princeton NJ	  	 	1	 	  	 	47,025	 	  	 	100.0	% 	 	 	33.40	 	  	 	N	 	  	 	S	 	
201 Carnegie Center	  	Princeton NJ	  	 	—  	 	  	 	6,500	 	  	 	100.0	% 	 	 	33.72	 	  	 	N	 	  	 	S	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	19	 	  	 	2,680,641	 	  	 	75.0	% 	 	$	35.06	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total New York:	  	 	27	 	  	 	11,609,645	 	  	 	88.7	% 	 	$	89.85	 	  	 	 	 	  	 	 	 	

San Francisco and Los Angeles	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Office	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Embarcadero Center Four	  	CBD San Francisco CA	  	 	1	 	  	 	938,071	 	  	 	88.7	% 	 	$	69.02	 	  	 	N	 	  	 	CBD	 	
Embarcadero Center One	  	CBD San Francisco CA	  	 	1	 	  	 	831,506	 	  	 	94.7	% 	 	 	62.01	 	  	 	N	 	  	 	CBD	 	
Embarcadero Center Two	  	CBD San Francisco CA	  	 	1	 	  	 	788,929	 	  	 	94.8	% 	 	 	67.73	 	  	 	N	 	  	 	CBD	 	
Embarcadero Center Three	  	CBD San Francisco CA	  	 	1	 	  	 	781,160	 	  	 	89.7	% 	 	 	61.09	 	  	 	N	 	  	 	CBD	 	
680 Folsom Street	  	CBD San Francisco CA	  	 	2	 	  	 	524,793	 	  	 	98.9	% 	 	 	60.31	 	  	 	N	 	  	 	CBD	 	
535 Mission Street	  	CBD San Francisco CA	  	 	1	 	  	 	307,235	 	  	 	100.0	% 	 	 	74.60	 	  	 	N	 	  	 	CBD	 	
690 Folsom Street	  	CBD San Francisco CA	  	 	1	 	  	 	26,080	 	  	 	100.0	% 	 	 	72.62	 	  	 	N	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	8	 	  	 	4,197,774	 	  	 	93.4	% 	 	$	65.23	 	  	 	 	 	  	 	 	 	
601 and 651 Gateway	  	South San Francisco CA	  	 	2	 	  	 	506,279	 	  	 	98.0	% 	 	$	41.00	 	  	 	N	 	  	 	S	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
611 Gateway	  	South San Francisco CA	  	 	1	 	  	 	260,337	 	  	 	35.4	% 	 	 	39.14	 	  	 	N	 	  	 	S	 	
Mountain View Research Park	  	Mountain View CA	  	 	15	 	  	 	540,433	 	  	 	100.0	% 	 	 	43.71	 	  	 	N	 	  	 	S	 	
2440 West El Camino Real	  	Mountain View CA	  	 	1	 	  	 	141,392	 	  	 	100.0	% 	 	 	60.92	 	  	 	N	 	  	 	S	 	
453 Ravendale Drive	  	Mountain View CA	  	 	1	 	  	 	29,620	 	  	 	65.7	% 	 	 	32.78	 	  	 	N	 	  	 	S	 	
(5)(6) 3625-3635 Peterson Way	  	Santa Clara CA	  	 	1	 	  	 	218,366	 	  	 	100.0	% 	 	 	22.22	 	  	 	N	 	  	 	S	 	
(6) North First Business Park	  	San Jose CA	  	 	5	 	  	 	190,636	 	  	 	87.2	% 	 	 	23.03	 	  	 	N	 	  	 	S	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	26	 	  	 	1,887,063	 	  	 	88.7	% 	 	$	39.14	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
(4)(5) Colorado Center (49.8% ownership)	  	West Los Angeles CA	  	 	6	 	  	 	1,117,557	 	  	 	82.3	% 	 	$	58.16	 	  	 	N	 	  	 	CBD	 	
 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Total San Francisco and	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Los Angeles:	  	 	40	 	  	 	7,202,394	 	  	 	90.4	% 	 	$	57.53	 	  	 	 	 	  	 	 	 	

(1)	Represents signed leases for which revenue recognition has commenced in accordance with GAAP.	
(2)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(3)	Approximately 13% of this complex was removed from the in-service portfolio upon commencement of construction of the planned redevelopment that occurred during the third quarter of 2016. As a result, the portion related to the planned redevelopment is not included in the Company’s Same Property analysis.	
(4)	This is an unconsolidated joint venture property.	
(5)	Not included in Same Property analysis.	
(6)	Property held for redevelopment.	
 
28

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE PROPERTY LISTING (continued)
as of June 30, 2017

 	  	Sub Market	 	Number of
Buildings	 	 	Square Feet	 	 	Leased % (1)	 	 	Annualized
Rental Obligations
Per Leased SF (2)	 	 	Encumbered
with secured
debt
(Y/N)	 	 	Central
Business
District (CBD) or
Suburban (S)	
Washington, DC	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Capital Gallery	  	Southwest Washington DC	 	 	1	 	 	 	631,029	 	 	 	99.8	% 	 	$	60.67	 	 	 	N	 	 	CBD	
500 E Street, S.W.	  	Southwest Washington DC	 	 	1	 	 	 	251,994	 	 	 	100.0	% 	 	 	49.46	 	 	 	N	 	 	CBD	
(3)(4) Metropolitan Square (20% ownership)	  	East End Washington DC	 	 	1	 	 	 	607,041	 	 	 	72.8	% 	 	 	62.47	 	 	 	Y	 	 	CBD	
    (3)  901 New York Avenue (25% ownership)	  	East End Washington DC	 	 	1	 	 	 	539,680	 	 	 	89.8	% 	 	 	66.23	 	 	 	Y	 	 	CBD	
    (5)  601 Massachusetts Avenue	  	East End Washington DC	 	 	1	 	 	 	478,751	 	 	 	91.8	% 	 	 	73.27	 	 	 	N	 	 	CBD	
    (3)  Market Square North (50% ownership)	  	East End Washington DC	 	 	1	 	 	 	415,756	 	 	 	74.1	% 	 	 	66.80	 	 	 	Y	 	 	CBD	
2200 Pennsylvania Avenue	  	CBD Washington DC	 	 	1	 	 	 	458,831	 	 	 	100.0	% 	 	 	90.58	 	 	 	N	 	 	CBD	
1333 New Hampshire Avenue	  	CBD Washington DC	 	 	1	 	 	 	315,371	 	 	 	99.0	% 	 	 	47.71	 	 	 	N	 	 	CBD	
1330 Connecticut Avenue	  	CBD Washington DC	 	 	1	 	 	 	253,121	 	 	 	98.0	% 	 	 	61.30	 	 	 	N	 	 	CBD	
Sumner Square	  	CBD Washington DC	 	 	1	 	 	 	208,892	 	 	 	98.5	% 	 	 	51.08	 	 	 	N	 	 	CBD	
    (3)  500 North Capitol Street, N.W. (30% ownership)	  	Capitol Hill Washington DC	 	 	1	 	 	 	230,860	 	 	 	100.0	% 	 	 	69.08	 	 	 	Y	 	 	CBD	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	11	 	 	 	4,391,326	 	 	 	91.3	% 	 	$	64.99	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
South of Market	  	Reston VA	 	 	3	 	 	 	623,666	 	 	 	98.9	% 	 	$	56.56	 	 	 	N	 	 	S	
Fountain Square	  	Reston VA	 	 	2	 	 	 	518,345	 	 	 	88.8	% 	 	 	49.65	 	 	 	N	 	 	S	
One Freedom Square	  	Reston VA	 	 	1	 	 	 	432,585	 	 	 	99.7	% 	 	 	48.34	 	 	 	N	 	 	S	
Two Freedom Square	  	Reston VA	 	 	1	 	 	 	421,757	 	 	 	100.0	% 	 	 	47.56	 	 	 	N	 	 	S	
One and Two Discovery Square	  	Reston VA	 	 	2	 	 	 	366,990	 	 	 	87.5	% 	 	 	44.93	 	 	 	N	 	 	S	
One Reston Overlook	  	Reston VA	 	 	1	 	 	 	319,519	 	 	 	100.0	% 	 	 	39.58	 	 	 	N	 	 	S	
Reston Corporate Center	  	Reston VA	 	 	2	 	 	 	261,046	 	 	 	100.0	% 	 	 	40.76	 	 	 	N	 	 	S	
Democracy Tower	  	Reston VA	 	 	1	 	 	 	259,441	 	 	 	100.0	% 	 	 	60.85	 	 	 	N	 	 	S	
    (6)  Fountain Square Retail	  	Reston VA	 	 	1	 	 	 	237,209	 	 	 	97.4	% 	 	 	52.23	 	 	 	N	 	 	S	
Two Reston Overlook	  	Reston VA	 	 	1	 	 	 	134,615	 	 	 	100.0	% 	 	 	38.91	 	 	 	N	 	 	S	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	15	 	 	 	3,575,173	 	 	 	96.7	% 	 	$	49.00	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Wisconsin Place Office	  	Montgomery County MD	 	 	1	 	 	 	299,186	 	 	 	100.0	% 	 	$	50.64	 	 	 	N	 	 	S	
2600 Tower Oaks Boulevard	  	Montgomery County MD	 	 	1	 	 	 	179,421	 	 	 	52.5	% 	 	 	33.03	 	 	 	N	 	 	S	
New Dominion Technology Park - Building Two	  	Herndon VA	 	 	1	 	 	 	257,400	 	 	 	100.0	% 	 	 	42.78	 	 	 	N	 	 	S	
New Dominion Technology Park - Building One	  	Herndon VA	 	 	1	 	 	 	235,201	 	 	 	100.0	% 	 	 	35.42	 	 	 	Y	 	 	S	
Kingstowne Two	  	Springfield VA	 	 	1	 	 	 	156,251	 	 	 	76.6	% 	 	 	41.11	 	 	 	N	 	 	S	
Kingstowne One	  	Springfield VA	 	 	1	 	 	 	151,483	 	 	 	75.6	% 	 	 	41.32	 	 	 	N	 	 	S	
7601 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	114,028	 	 	 	100.0	% 	 	 	18.88	 	 	 	N	 	 	S	
7435 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	103,557	 	 	 	83.4	% 	 	 	22.90	 	 	 	N	 	 	S	
8000 Grainger Court	  	Springfield VA	 	 	1	 	 	 	88,775	 	 	 	100.0	% 	 	 	20.93	 	 	 	N	 	 	S	
    (6)  Kingstowne Retail	  	Springfield VA	 	 	1	 	 	 	88,288	 	 	 	100.0	% 	 	 	36.37	 	 	 	N	 	 	S	
7500 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	79,971	 	 	 	100.0	% 	 	 	16.58	 	 	 	N	 	 	S	
7501 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	75,756	 	 	 	100.0	% 	 	 	28.84	 	 	 	N	 	 	S	
7450 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	62,402	 	 	 	100.0	% 	 	 	17.55	 	 	 	N	 	 	S	
7374 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	57,321	 	 	 	100.0	% 	 	 	18.03	 	 	 	N	 	 	S	
8000 Corporate Court	  	Springfield VA	 	 	1	 	 	 	52,539	 	 	 	100.0	% 	 	 	14.38	 	 	 	N	 	 	S	
7451 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	45,615	 	 	 	67.4	% 	 	 	26.58	 	 	 	N	 	 	S	
7300 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	32,000	 	 	 	0.0	% 	 	 	—  	 	 	 	N	 	 	S	
7375 Boston Boulevard	  	Springfield VA	 	 	1	 	 	 	26,865	 	 	 	79.2	% 	 	 	28.77	 	 	 	N	 	 	S	
    (3)  Annapolis Junction Building Seven (50% ownership)	  	Anne Arundel County MD	 	 	1	 	 	 	127,229	 	 	 	100.0	% 	 	 	31.79	 	 	 	Y	 	 	S	
    (3)  Annapolis Junction Building Eight (50% ownership)	  	Anne Arundel County MD	 	 	1	 	 	 	125,685	 	 	 	0.0	% 	 	 	—  	 	 	 	Y	 	 	S	
    (3)  Annapolis Junction Building Six (50% ownership)	  	Anne Arundel County MD	 	 	1	 	 	 	119,339	 	 	 	75.2	% 	 	 	30.03	 	 	 	Y	 	 	S	
    (3)  Annapolis Junction Building One (50% ownership)	  	Anne Arundel County MD	 	 	1	 	 	 	117,599	 	 	 	31.4	% 	 	 	106.61	 	 	 	Y	 	 	S	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	22	 	 	 	2,595,911	 	 	 	82.1	% 	 	$	35.17	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Total Washington Office:	 	 	48	 	 	 	10,562,410	 	 	 	90.9	% 	 	$	52.61	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Residential	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
The Avant at Reston Town Center (359 units)	  	Reston VA	 	 	1	 	 	 	355,374	 	 	 	 	 	 	 	 	 	 	 	N	 	 	S	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Total Washington Residential:	 	 	1	 	 	 	355,374	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Total Washington, DC:	 	 	49	 	 	 	10,917,784	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Total In-Service Properties:	 	 	166	 	 	 	43,635,627	 	 	 	90.8	%(7) 	 	$	63.39	 	 	 	(7	) 	 	 	

(1)	Represents signed leases for which revenue recognition has commenced in accordance with GAAP.	
(2)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(3)	This is an unconsolidated joint venture property.	
(4)	On October 20, 2016, the Company and its partner in the unconsolidated joint venture that owns Metropolitan Square, completed the sale of an 80% interest in the joint venture. Prior to the sale, the Company owned a 51% interest in the joint venture. Following the sale, the Company continues to own a 20% interest in the joint venture. As a result, 31% of operating activities prior to the sale is not included in the Company’s Same Property analysis.	
(5)	Not included in Same Property analysis.	
(6)	This is a retail property.	
(7)	Excludes Hotel and Residential properties. For disclosures relating to the Company’s Hotel and Residential properties, see page 24.	
 
29

Table of Contents

SECOND QUARTER 2017
 
OCCUPANCY BY LOCATION
Total In-Service Properties (1)

 	  	CBD	 	 	Suburban	 	 	Total	 	
Location	  	30-Jun-17	 	 	30-Jun-16	 	 	30-Jun-17	 	 	30-Jun-16	 	 	30-Jun-17	 	 	30-Jun-16	 	
Boston	  	 	94.4	% 	 	 	92.4	% 	 	 	89.4	% 	 	 	89.4	% 	 	 	92.6	% 	 	 	91.3	% 	
New York	  	 	92.9	% 	 	 	94.3	% 	 	 	75.0	% 	 	 	78.2	% 	 	 	88.7	% 	 	 	90.7	% 	
San Francisco and Los Angeles	  	 	91.0	% 	 	 	91.2	% 	 	 	88.7	% 	 	 	89.1	% 	 	 	90.4	% 	 	 	90.5	% 	
Washington, DC	  	 	91.3	% 	 	 	92.1	% 	 	 	90.6	% 	 	 	89.0	% 	 	 	90.9	% 	 	 	90.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Portfolio	  	 	92.8	% 	 	 	92.8	% 	 	 	87.3	% 	 	 	87.4	% 	 	 	90.8	% 	 	 	90.8	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Property Portfolio (1) (2)

 	  	CBD	 	 	Suburban	 	 	Total	 	
Location	  	30-Jun-17	 	 	30-Jun-16	 	 	30-Jun-17	 	 	30-Jun-16	 	 	30-Jun-17	 	 	30-Jun-16	 	
Boston	  	 	94.4	% 	 	 	92.4	% 	 	 	90.2	% 	 	 	89.4	% 	 	 	93.0	% 	 	 	91.4	% 	
New York	  	 	92.9	% 	 	 	95.2	% 	 	 	73.4	% 	 	 	77.1	% 	 	 	88.7	% 	 	 	91.3	% 	
San Francisco and Los Angeles	  	 	93.4	% 	 	 	91.2	% 	 	 	87.2	% 	 	 	87.7	% 	 	 	91.6	% 	 	 	90.2	% 	
Washington, DC	  	 	91.3	% 	 	 	92.7	% 	 	 	90.6	% 	 	 	89.0	% 	 	 	90.8	% 	 	 	90.5	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Portfolio	  	 	93.2	% 	 	 	93.2	% 	 	 	87.2	% 	 	 	87.0	% 	 	 	91.0	% 	 	 	90.9	% 	

(1)	Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Includes 100% of joint venture properties. Does not include residential and hotel properties.	
(2)	For disclosures related to the Company’s definition of Same Properties, see page 48.	
 
30

Table of Contents

SECOND QUARTER 2017
 
TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION
TOP 20 TENANTS (1)

 	  	Tenant	  	% of BXP’s Share of
Annualized Rental
Obligations	 	
1.	  	Arnold & Porter Kaye Scholer	  	 	3.22	% 	
2.	  	US Government	  	 	2.75	% 	
3.	  	Biogen	  	 	1.93	% 	
4.	  	Shearman & Sterling	  	 	1.82	% 	
5.	  	Kirkland & Ellis	  	 	1.66	% 	
6.	  	Citibank	  	 	1.60	% 	
7.	  	Ropes & Gray	  	 	1.55	% 	
8.	  	O’Melveny & Myers	  	 	1.29	% 	
9.	  	Wellington Management	  	 	1.21	% 	
10.	  	Bank of America	  	 	1.18	% 	
11.	  	Google	  	 	1.09	% 	
12.	  	Weil Gotshal & Manges	  	 	1.06	% 	
13.	  	Aramis (Estee Lauder)	  	 	1.01	% 	
14.	  	Mass Financial Services	  	 	0.96	% 	
15.	  	Microsoft	  	 	0.85	% 	
16.	  	Morrison & Foerster	  	 	0.85	% 	
17.	  	Morgan Lewis & Bockius	  	 	0.84	% 	
18.	  	Hunton & Williams	  	 	0.84	% 	
19.	  	WeWork	  	 	0.83	% 	
20.	  	Starr Indemnity & Liability Co.	  	 	0.82	% 	
 	  	 	  	 	 	 	
 	  	BXP’s Share of Annualized Rental Obligations	  	 	27.36	% 	
 	  	 	  	 	 	 	
 	  	BXP’s Share of Square Feet	  	 	23.20	% 	
NOTABLE SIGNED DEALS (2)

Tenant	  	Property	  	Square Feet	 	
salesforce.com	  	Salesforce Tower	  	 	881,000	 	
Marriott International	  	7750 Wisconsin Avenue	  	 	720,000	 	
Akamai Technologies	  	145 Broadway	  	 	476,583	 	
TENANT DIVERSIFICATION (1)

 
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations and Rental Obligations, see pages 47-48.	
(2)	Represents leases signed with occupancy commencing in the future.	
 
31

Table of Contents

SECOND QUARTER 2017
 
LEASE EXPIRATIONS (1) (2) (3)
IN-SERVICE OFFICE PROPERTIES

Year of Lease
Expiration	  	Rentable Square
Footage Subject to
Expiring Leases	  	Current Annualized
Rental Obligations Under
Expiring Leases	  	Current Annualized
Rental Obligations Under
Expiring Leases p.s.f.	  	Annualized Rental
Obligations Under
Expiring Leases
with future
step-ups	  	Annualized Rental
Obligations Under
Expiring Leases
with future
step-ups - p.s.f.	  	Percentage of Total
Square Feet	
2017	  	1,460,397	  	$97,212,565	  	$66.57	  	$98,337,821	  	$67.34	  	3.78%(4)	
2018	  	1,427,350	  	87,874,352	  	61.56	  	88,974,265	  	62.34	  	3.70%	
2019	  	3,376,691	  	181,543,962	  	53.76	  	185,268,004	  	54.87	  	8.75%	
2020	  	4,070,475	  	248,399,274	  	61.02	  	254,803,952	  	62.60	  	10.55%	
2021	  	3,756,862	  	198,929,968	  	52.95	  	211,733,582	  	56.36	  	9.74%	
2022	  	4,198,475	  	245,450,664	  	58.46	  	261,532,005	  	62.29	  	10.88%	
2023	  	1,573,598	  	89,943,305	  	57.16	  	103,458,513	  	65.75	  	4.08%	
2024	  	2,741,073	  	162,002,141	  	59.10	  	176,829,852	  	64.51	  	7.10%	
2025	  	2,442,727	  	142,932,967	  	58.51	  	161,180,575	  	65.98	  	6.33%	
2026	  	2,594,637	  	196,597,298	  	75.77	  	216,010,274	  	83.25	  	6.72%	
Thereafter	  	9,027,133	  	617,124,403	  	68.36	  	802,037,453	  	88.85	  	23.39%	
IN-SERVICE RETAIL PROPERTIES

Year of Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases p.s.f.	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	  	Annualized
Rental Obligations
Under Expiring
Leases with
future step-ups -
p.s.f.	 	  	Percentage of
Total Square
Feet	 	
2017	 	 	89,637	 	 	$	6,687,555	 	 	$	74.61	 	 	$	6,703,555	 	  	$	74.79	 	  	 	4.43	%(4) 	
2018	 	 	107,193	 	 	 	17,505,670	 	 	 	163.31	 	 	 	18,055,845	 	  	 	168.44	 	  	 	5.30	% 	
2019	 	 	111,900	 	 	 	7,683,005	 	 	 	68.66	 	 	 	7,777,201	 	  	 	69.50	 	  	 	5.54	% 	
2020	 	 	183,516	 	 	 	11,683,627	 	 	 	63.67	 	 	 	11,978,872	 	  	 	65.27	 	  	 	9.08	% 	
2021	 	 	159,421	 	 	 	21,593,563	 	 	 	135.45	 	 	 	23,229,718	 	  	 	145.71	 	  	 	7.89	% 	
2022	 	 	228,010	 	 	 	20,217,966	 	 	 	88.67	 	 	 	21,939,873	 	  	 	96.22	 	  	 	11.28	% 	
2023	 	 	186,635	 	 	 	15,140,265	 	 	 	81.12	 	 	 	16,499,274	 	  	 	88.40	 	  	 	9.23	% 	
2024	 	 	114,109	 	 	 	10,655,391	 	 	 	93.38	 	 	 	12,137,874	 	  	 	106.37	 	  	 	5.65	% 	
2025	 	 	132,139	 	 	 	8,700,625	 	 	 	65.84	 	 	 	9,623,819	 	  	 	72.83	 	  	 	6.54	% 	
2026	 	 	111,807	 	 	 	13,523,598	 	 	 	120.95	 	 	 	15,867,901	 	  	 	141.92	 	  	 	5.53	% 	
Thereafter	 	 	596,842	 	 	 	50,543,690	 	 	 	84.69	 	 	 	81,566,188	 	  	 	136.66	 	  	 	29.53	% 	
TOTAL IN-SERVICE PROPERTIES

Year of Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations
Under Expiring
Leases	 	 	Current Annualized
Rental Obligations
Under Expiring
Leases p.s.f.	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	  	Annualized
Rental Obligations
Under Expiring
Leases with future
step-ups - p.s.f.	 	  	Percentage of
Total Square Feet	 	
2017	 	 	1,550,034	 	 	$	103,900,120	 	 	$	67.03	 	 	$	105,041,375	 	  	$	67.77	 	  	 	3.82	%(4) 	
2018	 	 	1,534,543	 	 	 	105,380,022	 	 	 	68.67	 	 	 	107,030,110	 	  	 	69.75	 	  	 	3.78	% 	
2019	 	 	3,488,591	 	 	 	189,226,968	 	 	 	54.24	 	 	 	193,045,205	 	  	 	55.34	 	  	 	8.59	% 	
2020	 	 	4,253,991	 	 	 	260,082,901	 	 	 	61.14	 	 	 	266,782,823	 	  	 	62.71	 	  	 	10.48	% 	
2021	 	 	3,916,283	 	 	 	220,523,532	 	 	 	56.31	 	 	 	234,963,301	 	  	 	60.00	 	  	 	9.64	% 	
2022	 	 	4,426,485	 	 	 	265,668,631	 	 	 	60.02	 	 	 	283,471,878	 	  	 	64.04	 	  	 	10.90	% 	
2023	 	 	1,760,233	 	 	 	105,083,570	 	 	 	59.70	 	 	 	119,957,787	 	  	 	68.15	 	  	 	4.33	% 	
2024	 	 	2,855,182	 	 	 	172,657,533	 	 	 	60.47	 	 	 	188,967,726	 	  	 	66.18	 	  	 	7.03	% 	
2025	 	 	2,574,866	 	 	 	151,633,592	 	 	 	58.89	 	 	 	170,804,394	 	  	 	66.34	 	  	 	6.34	% 	
2026	 	 	2,706,444	 	 	 	210,120,896	 	 	 	77.64	 	 	 	231,878,175	 	  	 	85.68	 	  	 	6.66	% 	
Thereafter	 	 	9,623,975	 	 	 	667,668,094	 	 	 	69.38	 	 	 	883,603,641	 	  	 	91.81	 	  	 	23.70	% 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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.	
 
32

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SECOND QUARTER 2017
 
IN-SERVICE BOSTON REGION PROPERTIES
Lease Expirations - Boston Region (1) (2) (3)
OFFICE

Year of Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations
Under Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized
Rental Obligations
Under Expiring
Leases with future
step-ups	 	 	Per
Square
Foot	 	
2017	 	 	288,962	 	 	$	13,778,511	 	 	$	47.68	 	 	$	14,093,403	 	 	$	48.77	(4) 	
2018	 	 	367,243	 	 	 	15,304,738	 	 	 	41.67	 	 	 	15,466,649	 	 	 	42.12	 	
2019	 	 	902,399	 	 	 	43,366,296	 	 	 	48.06	 	 	 	43,777,390	 	 	 	48.51	 	
2020	 	 	468,261	 	 	 	22,214,984	 	 	 	47.44	 	 	 	23,844,071	 	 	 	50.92	 	
2021	 	 	1,071,527	 	 	 	43,464,417	 	 	 	40.56	 	 	 	44,601,602	 	 	 	41.62	 	
2022	 	 	1,640,172	 	 	 	82,301,759	 	 	 	50.18	 	 	 	83,953,741	 	 	 	51.19	 	
2023	 	 	574,911	 	 	 	30,027,171	 	 	 	52.23	 	 	 	34,909,455	 	 	 	60.72	 	
2024	 	 	643,580	 	 	 	31,435,266	 	 	 	48.84	 	 	 	34,322,037	 	 	 	53.33	 	
2025	 	 	1,095,331	 	 	 	63,754,185	 	 	 	58.21	 	 	 	70,600,444	 	 	 	64.46	 	
2026	 	 	1,059,333	 	 	 	70,294,919	 	 	 	66.36	 	 	 	77,426,403	 	 	 	73.09	 	
Thereafter	 	 	3,548,025	 	 	 	186,026,972	 	 	 	52.43	 	 	 	221,397,092	 	 	 	62.40	 	
RETAIL

Year of Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	
2017	 	 	44,248	 	 	$	3,647,179	 	 	$	82.43	 	 	$	3,663,179	 	 	$	82.79	(4) 	
2018	 	 	25,637	 	 	 	3,542,650	 	 	 	138.19	 	 	 	3,545,470	 	 	 	138.30	 	
2019	 	 	11,787	 	 	 	1,917,396	 	 	 	162.67	 	 	 	1,923,992	 	 	 	163.23	 	
2020	 	 	92,460	 	 	 	5,867,657	 	 	 	63.46	 	 	 	5,999,044	 	 	 	64.88	 	
2021	 	 	37,303	 	 	 	2,964,453	 	 	 	79.47	 	 	 	3,106,529	 	 	 	83.28	 	
2022	 	 	81,347	 	 	 	5,017,158	 	 	 	61.68	 	 	 	5,381,182	 	 	 	66.15	 	
2023	 	 	80,257	 	 	 	7,564,831	 	 	 	94.26	 	 	 	8,042,970	 	 	 	100.22	 	
2024	 	 	70,752	 	 	 	4,262,280	 	 	 	60.24	 	 	 	4,651,948	 	 	 	65.75	 	
2025	 	 	30,224	 	 	 	3,621,748	 	 	 	119.83	 	 	 	4,002,652	 	 	 	132.43	 	
2026	 	 	18,912	 	 	 	4,824,385	 	 	 	255.10	 	 	 	5,669,604	 	 	 	299.79	 	
Thereafter	 	 	338,731	 	 	 	19,271,719	 	 	 	56.89	 	 	 	20,119,926	 	 	 	59.40	 	
TOTAL PROPERTY TYPES

Year of Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	
2017	 	 	333,210	 	 	$	17,425,690	 	 	$	52.30	 	 	$	17,756,582	 	 	$	53.29	(4) 	
2018	 	 	392,880	 	 	 	18,847,388	 	 	 	47.97	 	 	 	19,012,119	 	 	 	48.39	 	
2019	 	 	914,186	 	 	 	45,283,692	 	 	 	49.53	 	 	 	45,701,383	 	 	 	49.99	 	
2020	 	 	560,721	 	 	 	28,082,641	 	 	 	50.08	 	 	 	29,843,115	 	 	 	53.22	 	
2021	 	 	1,108,830	 	 	 	46,428,870	 	 	 	41.87	 	 	 	47,708,130	 	 	 	43.03	 	
2022	 	 	1,721,519	 	 	 	87,318,917	 	 	 	50.72	 	 	 	89,334,924	 	 	 	51.89	 	
2023	 	 	655,168	 	 	 	37,592,002	 	 	 	57.38	 	 	 	42,952,425	 	 	 	65.56	 	
2024	 	 	714,332	 	 	 	35,697,546	 	 	 	49.97	 	 	 	38,973,985	 	 	 	54.56	 	
2025	 	 	1,125,555	 	 	 	67,375,932	 	 	 	59.86	 	 	 	74,603,096	 	 	 	66.28	 	
2026	 	 	1,078,245	 	 	 	75,119,304	 	 	 	69.67	 	 	 	83,096,007	 	 	 	77.07	 	
Thereafter	 	 	3,886,756	 	 	 	205,298,691	 	 	 	52.82	 	 	 	241,517,018	 	 	 	62.14	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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.	
 
33

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE BOSTON REGION PROPERTIES
Quarterly Lease Expirations - Boston Region (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	8,550	 	  	 	247,824	 	  	 	28.99	 	  	 	247,824	 	  	 	28.99	(4) 	
Q3 2017	  	 	88,348	 	  	 	3,681,764	 	  	 	41.67	 	  	 	3,935,428	 	  	 	44.54	 	
Q4 2017	  	 	192,064	 	  	 	9,848,924	 	  	 	51.28	 	  	 	9,910,152	 	  	 	51.60	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	288,962	 	  	$	13,778,511	 	  	$	47.68	 	  	$	14,093,403	 	  	$	48.77	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	51,835	 	  	$	2,233,350	 	  	$	43.09	 	  	$	2,233,350	 	  	$	43.09	 	
Q2 2018	  	 	107,291	 	  	 	4,559,462	 	  	 	42.50	 	  	 	4,566,020	 	  	 	42.56	 	
Q3 2018	  	 	32,969	 	  	 	1,406,871	 	  	 	42.67	 	  	 	1,416,879	 	  	 	42.98	 	
Q4 2018	  	 	175,148	 	  	 	7,105,055	 	  	 	40.57	 	  	 	7,250,400	 	  	 	41.40	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	367,243	 	  	$	15,304,738	 	  	$	41.67	 	  	$	15,466,649	 	  	$	42.12	 	

RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	2	 	  	 	112,000	 	  	 	55,999.98	 	  	 	112,000	 	  	 
	55,999.98
	 
(4) 	
Q3 2017	  	 	32,112	 	  	 	2,598,383	 	  	 	80.92	 	  	 	2,614,383	 	  	 	81.41	 	
Q4 2017	  	 	12,134	 	  	 	936,796	 	  	 	77.20	 	  	 	936,796	 	  	 	77.20	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	44,248	 	  	$	3,647,179	 	  	$	82.43	 	  	$	3,663,179	 	  	$	82.79	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	1,974	 	  	$	525,072	 	  	$	265.99	 	  	$	525,072	 	  	$	265.99	 	
Q2 2018	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Q3 2018	  	 	1	 	  	 	52,000	 	  	 	51,999.96	 	  	 	52,000	 	  	 	51,999.96	 	
Q4 2018	  	 	23,662	 	  	 	2,965,578	 	  	 	125.33	 	  	 	2,968,398	 	  	 	125.45	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	25,637	 	  	$	3,542,650	 	  	$	138.19	 	  	$	3,545,470	 	  	$	138.30	 	

TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	8,552	 	  	 	359,824	 	  	 	42.07	 	  	 	359,824	 	  	 	42.07	(4) 	
Q3 2017	  	 	120,460	 	  	 	6,280,147	 	  	 	52.13	 	  	 	6,549,811	 	  	 	54.37	 	
Q4 2017	  	 	204,198	 	  	 	10,785,719	 	  	 	52.82	 	  	 	10,846,947	 	  	 	53.12	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	333,210	 	  	$	17,425,690	 	  	$	52.30	 	  	$	17,756,582	 	  	$	53.29	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	53,809	 	  	$	2,758,422	 	  	$	51.26	 	  	$	2,758,422	 	  	$	51.26	 	
Q2 2018	  	 	107,291	 	  	 	4,559,462	 	  	 	42.50	 	  	 	4,566,020	 	  	 	42.56	 	
Q3 2018	  	 	32,970	 	  	 	1,458,871	 	  	 	44.25	 	  	 	1,468,878	 	  	 	44.55	 	
Q4 2018	  	 	198,810	 	  	 	10,070,633	 	  	 	50.65	 	  	 	10,218,798	 	  	 	51.40	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	392,880	 	  	$	18,847,388	 	  	$	47.97	 	  	$	19,012,119	 	  	$	48.39	 	

(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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 quarter.	
 
34

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE NEW YORK REGION PROPERTIES
Lease Expirations - New York Region (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	633,816	 	  	$	58,561,486	 	  	$	92.40	 	  	$	58,561,486	 	  	$	92.40	(4) 	
2018	  	 	433,367	 	  	 	41,206,868	 	  	 	95.09	 	  	 	41,233,269	 	  	 	95.15	 	
2019	  	 	524,454	 	  	 	41,521,121	 	  	 	79.17	 	  	 	41,740,307	 	  	 	79.59	 	
2020	  	 	1,601,661	 	  	 	122,671,357	 	  	 	76.59	 	  	 	123,553,666	 	  	 	77.14	 	
2021	  	 	414,907	 	  	 	35,373,733	 	  	 	85.26	 	  	 	35,845,200	 	  	 	86.39	 	
2022	  	 	921,341	 	  	 	81,421,204	 	  	 	88.37	 	  	 	85,848,308	 	  	 	93.18	 	
2023	  	 	133,929	 	  	 	10,139,184	 	  	 	75.71	 	  	 	10,915,395	 	  	 	81.50	 	
2024	  	 	1,059,454	 	  	 	73,875,899	 	  	 	69.73	 	  	 	80,606,530	 	  	 	76.08	 	
2025	  	 	564,148	 	  	 	40,397,448	 	  	 	71.61	 	  	 	44,622,152	 	  	 	79.10	 	
2026	  	 	847,674	 	  	 	73,921,297	 	  	 	87.20	 	  	 	76,742,082	 	  	 	90.53	 	
Thereafter	  	 	2,838,166	 	  	 	261,850,420	 	  	 	92.26	 	  	 	357,675,928	 	  	 	126.02	 	
 	 	 	 	 	 	
RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	7,206	 	  	$	1,384,900	 	  	$	192.19	 	  	$	1,384,900	 	  	$	192.19	(4) 	
2018	  	 	8,691	 	  	 	9,232,542	 	  	 	1,062.31	 	  	 	9,758,264	 	  	 	1,122.80	 	
2019	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
2020	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
2021	  	 	26,225	 	  	 	12,515,230	 	  	 	477.23	 	  	 	13,524,391	 	  	 	515.71	 	
2022	  	 	70,721	 	  	 	11,159,435	 	  	 	157.80	 	  	 	12,198,885	 	  	 	172.49	 	
2023	  	 	1,847	 	  	 	1,839,144	 	  	 	995.75	 	  	 	2,256,696	 	  	 	1,221.82	 	
2024	  	 	11,919	 	  	 	4,378,804	 	  	 	367.38	 	  	 	5,225,743	 	  	 	438.44	 	
2025	  	 	1,872	 	  	 	654,764	 	  	 	349.77	 	  	 	730,700	 	  	 	390.33	 	
2026	  	 	34,807	 	  	 	4,665,743	 	  	 	134.05	 	  	 	5,719,108	 	  	 	164.31	 	
Thereafter	  	 	112,174	 	  	 	24,725,414	 	  	 	220.42	 	  	 	53,624,650	 	  	 	478.05	 	
 	 	 	 	
TOTAL PROPERTY TYPES	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	641,022	 	  	$	59,946,387	 	  	$	93.52	 	  	$	59,946,387	 	  	$	93.52	(4) 	
2018	  	 	442,058	 	  	 	50,439,411	 	  	 	114.10	 	  	 	50,991,533	 	  	 	115.35	 	
2019	  	 	524,454	 	  	 	41,521,121	 	  	 	79.17	 	  	 	41,740,307	 	  	 	79.59	 	
2020	  	 	1,601,661	 	  	 	122,671,357	 	  	 	76.59	 	  	 	123,553,666	 	  	 	77.14	 	
2021	  	 	441,132	 	  	 	47,888,963	 	  	 	108.56	 	  	 	49,369,591	 	  	 	111.92	 	
2022	  	 	992,062	 	  	 	92,580,639	 	  	 	93.32	 	  	 	98,047,193	 	  	 	98.83	 	
2023	  	 	135,776	 	  	 	11,978,328	 	  	 	88.22	 	  	 	13,172,091	 	  	 	97.01	 	
2024	  	 	1,071,373	 	  	 	78,254,703	 	  	 	73.04	 	  	 	85,832,273	 	  	 	80.11	 	
2025	  	 	566,020	 	  	 	41,052,212	 	  	 	72.53	 	  	 	45,352,852	 	  	 	80.13	 	
2026	  	 	882,481	 	  	 	78,587,040	 	  	 	89.05	 	  	 	82,461,190	 	  	 	93.44	 	
Thereafter	  	 	2,950,340	 	  	 	286,575,834	 	  	 	97.13	 	  	 	411,300,578	 	  	 	139.41	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties.	
(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 quarter.	
 
35

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE NEW YORK REGION PROPERTIES
Quarterly Lease Expirations - New York Region (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	94,162	 	  	 	11,853,956	 	  	 	125.89	 	  	 	11,853,956	 	  	 	125.89	(4) 	
Q3 2017	  	 	475,078	 	  	 	41,172,496	 	  	 	86.66	 	  	 	41,172,496	 	  	 	86.66	 	
Q4 2017	  	 	64,576	 	  	 	5,535,034	 	  	 	85.71	 	  	 	5,535,034	 	  	 	85.71	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	633,816	 	  	$	58,561,486	 	  	$	92.40	 	  	$	58,561,486	 	  	$	92.40	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	88,939	 	  	$	10,327,130	 	  	$	116.11	 	  	$	10,327,130	 	  	$	116.11	 	
Q2 2018	  	 	98,399	 	  	 	10,122,897	 	  	 	102.88	 	  	 	10,122,897	 	  	 	102.88	 	
Q3 2018	  	 	136,697	 	  	 	12,766,021	 	  	 	93.39	 	  	 	12,766,021	 	  	 	93.39	 	
Q4 2018	  	 	109,332	 	  	 	7,990,820	 	  	 	73.09	 	  	 	8,017,221	 	  	 	73.33	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	433,367	 	  	$	41,206,868	 	  	$	95.09	 	  	$	41,233,269	 	  	$	95.15	 	

RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	4,845	 	  	 	1,006,086	 	  	 	207.65	 	  	 	1,006,086	 	  	 	207.65	(4) 	
Q3 2017	  	 	1,600	 	  	 	327,428	 	  	 	204.64	 	  	 	327,428	 	  	 	204.64	 	
Q4 2017	  	 	761	 	  	 	51,386	 	  	 	67.52	 	  	 	51,386	 	  	 	67.52	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	7,206	 	  	$	1,384,900	 	  	$	192.19	 	  	$	1,384,900	 	  	$	192.19	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2018	  	 	2,177	 	  	 	480,551	 	  	 	220.74	 	  	 	480,551	 	  	 	220.74	 	
Q3 2018	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Q4 2018	  	 	6,514	 	  	 	8,751,991	 	  	 	1,343.57	 	  	 	9,277,713	 	  	 	1,424.27	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	8,691	 	  	$	9,232,542	 	  	$	1,062.31	 	  	$	9,758,264	 	  	$	1,122.80	 	

TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	99,007	 	  	 	12,860,043	 	  	 	129.89	 	  	 	12,860,043	 	  	 	129.89	(4) 	
Q3 2017	  	 	476,678	 	  	 	41,499,924	 	  	 	87.06	 	  	 	41,499,924	 	  	 	87.06	 	
Q4 2017	  	 	65,337	 	  	 	5,586,420	 	  	 	85.50	 	  	 	5,586,420	 	  	 	85.50	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	641,022	 	  	$	59,946,387	 	  	$	93.52	 	  	$	59,946,387	 	  	$	93.52	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	88,939	 	  	$	10,327,130	 	  	$	116.11	 	  	$	10,327,130	 	  	$	116.11	 	
Q2 2018	  	 	100,576	 	  	 	10,603,448	 	  	 	105.43	 	  	 	10,603,448	 	  	 	105.43	 	
Q3 2018	  	 	136,697	 	  	 	12,766,021	 	  	 	93.39	 	  	 	12,766,021	 	  	 	93.39	 	
Q4 2018	  	 	115,846	 	  	 	16,742,812	 	  	 	144.53	 	  	 	17,294,934	 	  	 	149.29	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	442,058	 	  	$	50,439,411	 	  	$	114.10	 	  	$	50,991,533	 	  	$	115.35	 	

(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties.	
(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 quarter.	
 
36

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE SAN FRANCISCO AND LOS ANGELES REGIONS PROPERTIES
Lease Expirations - San Francisco and Los Angeles Regions (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	273,630	 	  	$	12,612,240	 	  	$	46.09	 	  	$	13,413,223	 	  	$	49.02	(4) 	
2018	  	 	177,354	 	  	 	9,434,528	 	  	 	53.20	 	  	 	9,510,286	 	  	 	53.62	 	
2019	  	 	867,205	 	  	 	43,135,273	 	  	 	49.74	 	  	 	44,869,657	 	  	 	51.74	 	
2020	  	 	681,422	 	  	 	43,475,787	 	  	 	63.80	 	  	 	44,653,188	 	  	 	65.53	 	
2021	  	 	1,002,686	 	  	 	50,804,022	 	  	 	50.67	 	  	 	55,957,422	 	  	 	55.81	 	
2022	  	 	825,954	 	  	 	45,271,838	 	  	 	54.81	 	  	 	51,179,881	 	  	 	61.96	 	
2023	  	 	406,783	 	  	 	27,344,765	 	  	 	67.22	 	  	 	31,784,122	 	  	 	78.14	 	
2024	  	 	397,923	 	  	 	23,329,156	 	  	 	58.63	 	  	 	24,045,546	 	  	 	60.43	 	
2025	  	 	314,111	 	  	 	18,169,731	 	  	 	57.84	 	  	 	21,427,421	 	  	 	68.22	 	
2026	  	 	280,908	 	  	 	19,750,400	 	  	 	70.31	 	  	 	23,105,867	 	  	 	82.25	 	
Thereafter	  	 	931,276	 	  	 	62,163,221	 	  	 	66.75	 	  	 	83,871,988	 	  	 	90.06	 	
 	 	 	 	 	 	
RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	27,241	 	  	$	1,000,611	 	  	$	36.73	 	  	$	1,000,611	 	  	$	36.73	 	
2018	  	 	35,502	 	  	 	2,171,246	 	  	 	61.16	 	  	 	2,182,093	 	  	 	61.46	 	
2019	  	 	13,325	 	  	 	708,312	 	  	 	53.16	 	  	 	725,413	 	  	 	54.44	 	
2020	  	 	31,336	 	  	 	1,965,662	 	  	 	62.73	 	  	 	2,047,392	 	  	 	65.34	 	
2021	  	 	22,163	 	  	 	1,451,584	 	  	 	65.50	 	  	 	1,519,725	 	  	 	68.57	 	
2022	  	 	37,586	 	  	 	1,720,921	 	  	 	45.79	 	  	 	1,862,253	 	  	 	49.55	 	
2023	  	 	30,950	 	  	 	1,755,289	 	  	 	56.71	 	  	 	1,840,576	 	  	 	59.47	 	
2024	  	 	9,388	 	  	 	642,493	 	  	 	68.44	 	  	 	730,329	 	  	 	77.79	 	
2025	  	 	22,933	 	  	 	1,477,978	 	  	 	64.45	 	  	 	1,671,315	 	  	 	72.88	 	
2026	  	 	24,494	 	  	 	1,757,902	 	  	 	71.77	 	  	 	1,980,777	 	  	 	80.87	 	
Thereafter	  	 	31,606	 	  	 	1,780,117	 	  	 	56.32	 	  	 	2,203,126	 	  	 	69.71	 	
 	 	 	 	 	 	
TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	300,871	 	  	$	13,612,850	 	  	$	45.24	 	  	$	14,413,834	 	  	$	47.91	(4) 	
2018	  	 	212,856	 	  	 	11,605,774	 	  	 	54.52	 	  	 	11,692,379	 	  	 	54.93	 	
2019	  	 	880,530	 	  	 	43,843,584	 	  	 	49.79	 	  	 	45,595,071	 	  	 	51.78	 	
2020	  	 	712,758	 	  	 	45,441,449	 	  	 	63.75	 	  	 	46,700,580	 	  	 	65.52	 	
2021	  	 	1,024,849	 	  	 	52,255,606	 	  	 	50.99	 	  	 	57,477,146	 	  	 	56.08	 	
2022	  	 	863,540	 	  	 	46,992,759	 	  	 	54.42	 	  	 	53,042,135	 	  	 	61.42	 	
2023	  	 	437,733	 	  	 	29,100,054	 	  	 	66.48	 	  	 	33,624,697	 	  	 	76.82	 	
2024	  	 	407,311	 	  	 	23,971,649	 	  	 	58.85	 	  	 	24,775,875	 	  	 	60.83	 	
2025	  	 	337,044	 	  	 	19,647,708	 	  	 	58.29	 	  	 	23,098,736	 	  	 	68.53	 	
2026	  	 	305,402	 	  	 	21,508,302	 	  	 	70.43	 	  	 	25,086,643	 	  	 	82.14	 	
Thereafter	  	 	962,882	 	  	 	63,943,338	 	  	 	66.41	 	  	 	86,075,114	 	  	 	89.39	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties.	
(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 quarter.	
 
37

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE SAN FRANCISCO AND LOS ANGELES REGIONS PROPERTIES
Quarterly Lease Expirations - San Francisco and Los Angeles Regions (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	61,656	 	  	 	1,355,054	 	  	 	21.98	 	  	 	1,355,054	 	  	 	21.98	(4) 	
Q3 2017	  	 	90,885	 	  	 	3,470,821	 	  	 	38.19	 	  	 	4,269,557	 	  	 	46.98	 	
Q4 2017	  	 	121,089	 	  	 	7,786,364	 	  	 	64.30	 	  	 	7,788,612	 	  	 	64.32	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	273,630	 	  	$	12,612,240	 	  	$	46.09	 	  	$	13,413,223	 	  	$	49.02	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	66,904	 	  	$	3,681,291	 	  	$	55.02	 	  	$	3,685,914	 	  	$	55.09	 	
Q2 2018	  	 	51,873	 	  	 	3,072,821	 	  	 	59.24	 	  	 	3,080,092	 	  	 	59.38	 	
Q3 2018	  	 	32,200	 	  	 	1,479,516	 	  	 	45.95	 	  	 	1,519,272	 	  	 	47.18	 	
Q4 2018	  	 	26,377	 	  	 	1,200,899	 	  	 	45.53	 	  	 	1,225,008	 	  	 	46.44	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	177,354	 	  	$	9,434,528	 	  	$	53.20	 	  	$	9,510,286	 	  	$	53.62	 	

RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Q3 2017	  	 	2,664	 	  	 	169,548	 	  	 	63.64	 	  	 	169,548	 	  	 	63.64	 	
Q4 2017	  	 	24,577	 	  	 	831,063	 	  	 	33.81	 	  	 	831,063	 	  	 	33.81	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	27,241	 	  	$	1,000,611	 	  	$	36.73	 	  	$	1,000,611	 	  	$	36.73	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	22,835	 	  	$	1,319,247	 	  	$	57.77	 	  	$	1,319,247	 	  	$	57.77	 	
Q2 2018	  	 	2,802	 	  	 	199,741	 	  	 	71.29	 	  	 	199,741	 	  	 	71.29	 	
Q3 2018	  	 	2,771	 	  	 	135,778	 	  	 	49.00	 	  	 	137,352	 	  	 	49.57	 	
Q4 2018	  	 	7,094	 	  	 	516,480	 	  	 	72.81	 	  	 	525,753	 	  	 	74.11	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	35,502	 	  	$	2,171,246	 	  	$	61.16	 	  	$	2,182,093	 	  	$	61.46	 	

TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	61,656	 	  	 	1,355,054	 	  	 	21.98	 	  	 	1,355,054	 	  	 	21.98	(4) 	
Q3 2017	  	 	93,549	 	  	 	3,640,369	 	  	 	38.91	 	  	 	4,439,105	 	  	 	47.45	 	
Q4 2017	  	 	145,666	 	  	 	8,617,426	 	  	 	59.16	 	  	 	8,619,675	 	  	 	59.17	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	300,871	 	  	$	13,612,850	 	  	$	45.24	 	  	$	14,413,834	 	  	$	47.91	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	89,739	 	  	$	5,000,538	 	  	$	55.72	 	  	$	5,005,161	 	  	$	55.77	 	
Q2 2018	  	 	54,675	 	  	 	3,272,562	 	  	 	59.85	 	  	 	3,279,833	 	  	 	59.99	 	
Q3 2018	  	 	34,971	 	  	 	1,615,295	 	  	 	46.19	 	  	 	1,656,624	 	  	 	47.37	 	
Q4 2018	  	 	33,471	 	  	 	1,717,379	 	  	 	51.31	 	  	 	1,750,761	 	  	 	52.31	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	212,856	 	  	$	11,605,774	 	  	$	54.52	 	  	$	11,692,379	 	  	$	54.93	 	

(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties.	
(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 quarter.	
 
38

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE WASHINGTON, DC REGION PROPERTIES
Lease Expirations - Washington, DC Region (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	263,989	 	  	$	12,260,328	 	  	$	46.44	 	  	$	12,269,708	 	  	$	46.48	(4) 	
2018	  	 	449,386	 	  	 	21,928,218	 	  	 	48.80	 	  	 	22,764,062	 	  	 	50.66	 	
2019	  	 	1,082,633	 	  	 	53,521,273	 	  	 	49.44	 	  	 	54,880,649	 	  	 	50.69	 	
2020	  	 	1,319,131	 	  	 	60,037,146	 	  	 	45.51	 	  	 	62,753,028	 	  	 	47.57	 	
2021	  	 	1,267,742	 	  	 	69,287,796	 	  	 	54.65	 	  	 	75,329,359	 	  	 	59.42	 	
2022	  	 	811,008	 	  	 	36,455,864	 	  	 	44.95	 	  	 	40,550,074	 	  	 	50.00	 	
2023	  	 	457,975	 	  	 	22,432,185	 	  	 	48.98	 	  	 	25,849,542	 	  	 	56.44	 	
2024	  	 	640,116	 	  	 	33,361,821	 	  	 	52.12	 	  	 	37,855,740	 	  	 	59.14	 	
2025	  	 	469,137	 	  	 	20,611,603	 	  	 	43.94	 	  	 	24,530,558	 	  	 	52.29	 	
2026	  	 	406,722	 	  	 	32,630,682	 	  	 	80.23	 	  	 	38,735,922	 	  	 	95.24	 	
Thereafter	  	 	1,709,666	 	  	 	107,083,790	 	  	 	62.63	 	  	 	139,092,445	 	  	 	81.36	 	
 	 	 	 	 	 	
RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	10,942	 	  	$	654,865	 	  	$	59.85	 	  	$	654,865	 	  	$	59.85	 	
2018	  	 	37,363	 	  	 	2,559,232	 	  	 	68.50	 	  	 	2,570,018	 	  	 	68.79	 	
2019	  	 	86,788	 	  	 	5,057,298	 	  	 	58.27	 	  	 	5,127,796	 	  	 	59.08	 	
2020	  	 	59,720	 	  	 	3,850,308	 	  	 	64.47	 	  	 	3,932,436	 	  	 	65.85	 	
2021	  	 	73,730	 	  	 	4,662,297	 	  	 	63.23	 	  	 	5,079,074	 	  	 	68.89	 	
2022	  	 	38,356	 	  	 	2,320,452	 	  	 	60.50	 	  	 	2,497,553	 	  	 	65.12	 	
2023	  	 	73,581	 	  	 	3,981,000	 	  	 	54.10	 	  	 	4,359,032	 	  	 	59.24	 	
2024	  	 	22,050	 	  	 	1,371,814	 	  	 	62.21	 	  	 	1,529,854	 	  	 	69.38	 	
2025	  	 	77,110	 	  	 	2,946,135	 	  	 	38.21	 	  	 	3,219,152	 	  	 	41.75	 	
2026	  	 	33,594	 	  	 	2,275,568	 	  	 	67.74	 	  	 	2,498,412	 	  	 	74.37	 	
Thereafter	  	 	114,331	 	  	 	4,766,441	 	  	 	41.69	 	  	 	5,618,487	 	  	 	49.14	 	
 	 	 	 	 	 	
TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Year of Lease	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
Expiration	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
2017	  	 	274,931	 	  	$	12,915,193	 	  	$	46.98	 	  	$	12,924,573	 	  	$	47.01	(4) 	
2018	  	 	486,749	 	  	 	24,487,450	 	  	 	50.31	 	  	 	25,334,079	 	  	 	52.05	 	
2019	  	 	1,169,421	 	  	 	58,578,571	 	  	 	50.09	 	  	 	60,008,445	 	  	 	51.31	 	
2020	  	 	1,378,851	 	  	 	63,887,454	 	  	 	46.33	 	  	 	66,685,463	 	  	 	48.36	 	
2021	  	 	1,341,472	 	  	 	73,950,092	 	  	 	55.13	 	  	 	80,408,433	 	  	 	59.94	 	
2022	  	 	849,364	 	  	 	38,776,316	 	  	 	45.65	 	  	 	43,047,627	 	  	 	50.68	 	
2023	  	 	531,556	 	  	 	26,413,185	 	  	 	49.69	 	  	 	30,208,574	 	  	 	56.83	 	
2024	  	 	662,166	 	  	 	34,733,635	 	  	 	52.45	 	  	 	39,385,593	 	  	 	59.48	 	
2025	  	 	546,247	 	  	 	23,557,739	 	  	 	43.13	 	  	 	27,749,710	 	  	 	50.80	 	
2026	  	 	440,316	 	  	 	34,906,250	 	  	 	79.28	 	  	 	41,234,334	 	  	 	93.65	 	
Thereafter	  	 	1,823,997	 	  	 	111,850,231	 	  	 	61.32	 	  	 	144,710,932	 	  	 	79.34	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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 quarter.	
 
39

Table of Contents

SECOND QUARTER 2017
 
IN-SERVICE WASHINGTON, DC REGION PROPERTIES
Quarterly Lease Expirations - Washington, DC Region (1) (2) (3)
OFFICE

 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	6,873	 	  	 	682,787	 	  	 	99.34	 	  	 	682,787	 	  	 	99.34	(4) 	
Q3 2017	  	 	90,187	 	  	 	4,406,819	 	  	 	48.86	 	  	 	4,416,199	 	  	 	48.97	 	
Q4 2017	  	 	166,929	 	  	 	7,170,722	 	  	 	42.96	 	  	 	7,170,722	 	  	 	42.96	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	263,989	 	  	$	12,260,328	 	  	$	46.44	 	  	$	12,269,708	 	  	$	46.48	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	107,601	 	  	$	3,311,037	 	  	$	30.77	 	  	$	3,311,037	 	  	$	30.77	 	
Q2 2018	  	 	155,761	 	  	 	9,149,702	 	  	 	58.74	 	  	 	9,760,270	 	  	 	62.66	 	
Q3 2018	  	 	113,021	 	  	 	5,132,766	 	  	 	45.41	 	  	 	5,258,831	 	  	 	46.53	 	
Q4 2018	  	 	73,003	 	  	 	4,334,713	 	  	 	59.38	 	  	 	4,433,924	 	  	 	60.74	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	449,386	 	  	$	21,928,218	 	  	$	48.80	 	  	$	22,764,062	 	  	$	50.66	 	

RETAIL	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	  	 	—  	 	
Q3 2017	  	 	6,842	 	  	 	455,172	 	  	 	66.53	 	  	 	455,172	 	  	 	66.53	 	
Q4 2017	  	 	4,100	 	  	 	199,693	 	  	 	48.71	 	  	 	199,693	 	  	 	48.71	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	10,942	 	  	$	654,865	 	  	$	59.85	 	  	$	654,865	 	  	$	59.85	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	7,698	 	  	$	523,569	 	  	$	68.01	 	  	$	523,569	 	  	$	68.01	 	
Q2 2018	  	 	10,176	 	  	 	628,888	 	  	 	61.80	 	  	 	630,283	 	  	 	61.94	 	
Q3 2018	  	 	8,283	 	  	 	577,582	 	  	 	69.73	 	  	 	584,527	 	  	 	70.57	 	
Q4 2018	  	 	11,206	 	  	 	829,193	 	  	 	74.00	 	  	 	831,638	 	  	 	74.21	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	37,363	 	  	$	2,559,232	 	  	$	68.50	 	  	$	2,570,018	 	  	$	68.79	 	

TOTAL PROPERTY TYPES	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	
 	 	 	 	 	 	
 	  	 	 	  	 	 	  	 	 	  	Annualized	 	  	 	 	
 	  	Rentable Square	 	  	Current Annualized	 	  	Per	 	  	Rental Obligations Under	 	  	Per	 	
Lease Expiration	  	Footage Subject to	 	  	Rental Obligations Under	 	  	Square	 	  	Expiring Leases	 	  	Square	 	
by Quarter	  	Expiring Leases	 	  	Expiring Leases	 	  	Foot	 	  	with future step-ups	 	  	Foot	 	
Q1 2017	  	 	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	  	$	—  	 	
Q2 2017	  	 	6,873	 	  	 	682,787	 	  	 	99.34	 	  	 	682,787	 	  	 	99.34	(4) 	
Q3 2017	  	 	97,029	 	  	 	4,861,990	 	  	 	50.11	 	  	 	4,871,370	 	  	 	50.21	 	
Q4 2017	  	 	171,029	 	  	 	7,370,415	 	  	 	43.09	 	  	 	7,370,415	 	  	 	43.09	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	274,931	 	  	$	12,915,193	 	  	$	46.98	 	  	$	12,924,573	 	  	$	47.01	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2018	  	 	115,299	 	  	$	3,834,606	 	  	$	33.26	 	  	$	3,834,606	 	  	$	33.26	 	
Q2 2018	  	 	165,937	 	  	 	9,778,590	 	  	 	58.93	 	  	 	10,390,553	 	  	 	62.62	 	
Q3 2018	  	 	121,304	 	  	 	5,710,347	 	  	 	47.07	 	  	 	5,843,358	 	  	 	48.17	 	
Q4 2018	  	 	84,209	 	  	 	5,163,907	 	  	 	61.32	 	  	 	5,265,562	 	  	 	62.53	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2018	  	 	486,749	 	  	$	24,487,450	 	  	$	50.31	 	  	$	25,334,079	 	  	$	52.05	 	

(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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 quarter.	
 
40

Table of Contents

SECOND QUARTER 2017
 
CBD PROPERTIES
Lease Expirations (1) (2) (3)

 	 	Boston	 	 	San Francisco and Los Angeles	 	
 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	
 	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	
Year of Lease	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	
Expiration	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	
2017	 	 	246,838	 	 	$	14,396,329	 	 	$	58.32	 	 	$	14,727,221	 	 	$	59.66	(4) 	 	 	148,705	 	 	$	9,388,360	 	 	$	63.13	 	 	$	9,799,808	 	 	$	65.90	(4) 	
2018	 	 	129,818	 	 	 	9,534,672	 	 	 	73.45	 	 	 	9,547,449	 	 	 	73.54	 	 	 	143,040	 	 	 	8,944,045	 	 	 	62.53	 	 	 	8,977,472	 	 	 	62.76	 	
2019	 	 	430,549	 	 	 	26,087,750	 	 	 	60.59	 	 	 	26,390,486	 	 	 	61.29	 	 	 	389,041	 	 	 	23,219,682	 	 	 	59.68	 	 	 	23,983,433	 	 	 	61.65	 	
2020	 	 	288,261	 	 	 	17,888,869	 	 	 	62.06	 	 	 	18,481,066	 	 	 	64.11	 	 	 	616,259	 	 	 	41,144,137	 	 	 	66.76	 	 	 	42,070,749	 	 	 	68.27	 	
2021	 	 	428,476	 	 	 	25,041,687	 	 	 	58.44	 	 	 	25,276,454	 	 	 	58.99	 	 	 	679,168	 	 	 	42,668,020	 	 	 	62.82	 	 	 	47,201,340	 	 	 	69.50	 	
2022	 	 	982,491	 	 	 	59,619,631	 	 	 	60.68	 	 	 	61,216,166	 	 	 	62.31	 	 	 	443,035	 	 	 	27,895,654	 	 	 	62.96	 	 	 	30,891,869	 	 	 	69.73	 	
2023	 	 	443,068	 	 	 	29,249,219	 	 	 	66.02	 	 	 	33,626,154	 	 	 	75.89	 	 	 	375,992	 	 	 	25,496,819	 	 	 	67.81	 	 	 	29,140,574	 	 	 	77.50	 	
2024	 	 	343,971	 	 	 	20,580,824	 	 	 	59.83	 	 	 	22,394,696	 	 	 	65.11	 	 	 	382,799	 	 	 	22,987,002	 	 	 	60.05	 	 	 	23,564,883	 	 	 	61.56	 	
2025	 	 	686,806	 	 	 	45,327,780	 	 	 	66.00	 	 	 	50,973,676	 	 	 	74.22	 	 	 	331,402	 	 	 	19,447,040	 	 	 	58.68	 	 	 	22,845,373	 	 	 	68.94	 	
2026	 	 	945,656	 	 	 	70,407,292	 	 	 	74.45	 	 	 	77,670,869	 	 	 	82.13	 	 	 	305,402	 	 	 	21,508,302	 	 	 	70.43	 	 	 	25,086,643	 	 	 	82.14	 	
Thereafter	 	 	3,214,969	 	 	 	178,727,298	 	 	 	55.59	 	 	 	212,086,171	 	 	 	65.97	 	 	 	962,882	 	 	 	63,943,338	 	 	 	66.41	 	 	 	86,075,114	 	 	 	89.39	 	
 	 	 	
 	 	New York	 	 	Washington, DC	 	
 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	
 	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	
Year of Lease	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	
Expiration	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	
2017	 	 	564,834	 	 	$	57,111,288	 	 	$	101.11	 	 	$	57,111,288	 	 	$	101.11	(4) 	 	 	37,165	 	 	$	2,184,185	 	 	$	58.77	 	 	$	2,187,271	 	 	$	58.85	(4) 	
2018	 	 	351,075	 	 	 	47,214,045	 	 	 	134.48	 	 	 	47,739,767	 	 	 	135.98	 	 	 	83,276	 	 	 	4,935,702	 	 	 	59.27	 	 	 	5,027,893	 	 	 	60.38	 	
2019	 	 	349,132	 	 	 	35,111,738	 	 	 	100.57	 	 	 	35,241,671	 	 	 	100.94	 	 	 	466,480	 	 	 	30,184,767	 	 	 	64.71	 	 	 	31,132,458	 	 	 	66.74	 	
2020	 	 	1,279,571	 	 	 	111,526,017	 	 	 	87.16	 	 	 	111,945,796	 	 	 	87.49	 	 	 	463,524	 	 	 	26,292,858	 	 	 	56.72	 	 	 	27,701,430	 	 	 	59.76	 	
2021	 	 	311,243	 	 	 	43,766,447	 	 	 	140.62	 	 	 	45,122,053	 	 	 	144.97	 	 	 	592,007	 	 	 	39,630,036	 	 	 	66.94	 	 	 	43,215,888	 	 	 	73.00	 	
2022	 	 	909,815	 	 	 	89,767,290	 	 	 	98.67	 	 	 	95,012,691	 	 	 	104.43	 	 	 	103,320	 	 	 	6,150,827	 	 	 	59.53	 	 	 	6,702,051	 	 	 	64.87	 	
2023	 	 	91,631	 	 	 	10,526,230	 	 	 	114.88	 	 	 	11,736,080	 	 	 	128.08	 	 	 	48,609	 	 	 	3,075,172	 	 	 	63.26	 	 	 	3,651,470	 	 	 	75.12	 	
2024	 	 	679,827	 	 	 	64,658,492	 	 	 	95.11	 	 	 	71,441,386	 	 	 	105.09	 	 	 	193,400	 	 	 	12,830,587	 	 	 	66.34	 	 	 	14,705,364	 	 	 	76.04	 	
2025	 	 	296,170	 	 	 	31,400,301	 	 	 	106.02	 	 	 	34,368,806	 	 	 	116.04	 	 	 	86,404	 	 	 	4,589,103	 	 	 	53.11	 	 	 	5,497,562	 	 	 	63.63	 	
2026	 	 	717,436	 	 	 	73,255,638	 	 	 	102.11	 	 	 	76,381,952	 	 	 	106.47	 	 	 	354,808	 	 	 	30,584,868	 	 	 	86.20	 	 	 	36,049,549	 	 	 	101.60	 	
Thereafter	 	 	2,696,035	 	 	 	276,919,127	 	 	 	102.71	 	 	 	401,143,700	 	 	 	148.79	 	 	 	1,501,610	 	 	 	98,381,768	 	 	 	65.52	 	 	 	127,485,288	 	 	 	84.90	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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.	
 
41

Table of Contents

SECOND QUARTER 2017
 
SUBURBAN PROPERTIES
Lease Expirations (1) (2) (3)

 	 	Boston	 	 	San Francisco	 	
Year of
Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized
Rental Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	
2017	 	 	86,372	 	 	$	3,029,361	 	 	$	35.07	 	 	$	3,029,361	 	 	$	35.07	(4) 	 	 	152,166	 	 	$	4,224,490	 	 	$	27.76	 	 	$	4,614,026	 	 	$	30.32	(4) 	
2018	 	 	263,062	 	 	 	9,312,716	 	 	 	35.40	 	 	 	9,464,670	 	 	 	35.98	 	 	 	69,816	 	 	 	2,661,729	 	 	 	38.12	 	 	 	2,714,907	 	 	 	38.89	 	
2019	 	 	483,637	 	 	 	19,195,942	 	 	 	39.69	 	 	 	19,310,897	 	 	 	39.93	 	 	 	491,489	 	 	 	20,623,903	 	 	 	41.96	 	 	 	21,611,637	 	 	 	43.97	 	
2020	 	 	272,460	 	 	 	10,193,772	 	 	 	37.41	 	 	 	11,362,049	 	 	 	41.70	 	 	 	96,499	 	 	 	4,297,312	 	 	 	44.53	 	 	 	4,629,830	 	 	 	47.98	 	
2021	 	 	680,354	 	 	 	21,387,183	 	 	 	31.44	 	 	 	22,431,677	 	 	 	32.97	 	 	 	345,681	 	 	 	9,587,586	 	 	 	27.74	 	 	 	10,275,807	 	 	 	29.73	 	
2022	 	 	739,028	 	 	 	27,699,286	 	 	 	37.48	 	 	 	28,118,758	 	 	 	38.05	 	 	 	420,505	 	 	 	19,097,106	 	 	 	45.41	 	 	 	22,150,266	 	 	 	52.68	 	
2023	 	 	212,100	 	 	 	8,342,783	 	 	 	39.33	 	 	 	9,326,271	 	 	 	43.97	 	 	 	61,741	 	 	 	3,603,235	 	 	 	58.36	 	 	 	4,484,124	 	 	 	72.63	 	
2024	 	 	370,361	 	 	 	15,116,722	 	 	 	40.82	 	 	 	16,579,290	 	 	 	44.77	 	 	 	24,512	 	 	 	984,647	 	 	 	40.17	 	 	 	1,210,992	 	 	 	49.40	 	
2025	 	 	438,749	 	 	 	22,048,152	 	 	 	50.25	 	 	 	23,629,420	 	 	 	53.86	 	 	 	5,642	 	 	 	200,669	 	 	 	35.57	 	 	 	253,362	 	 	 	44.91	 	
2026	 	 	132,589	 	 	 	4,712,012	 	 	 	35.54	 	 	 	5,425,138	 	 	 	40.92	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
Thereafter	 	 	671,787	 	 	 	26,571,393	 	 	 	39.55	 	 	 	29,430,846	 	 	 	43.81	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	
 	 	 	
 	 	New York	 	 	Washington, DC	 	
Year of
Lease
Expiration	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized Rental
Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	 	Rentable Square
Footage Subject to
Expiring Leases	 	 	Current Annualized
Rental Obligations Under
Expiring Leases	 	 	Per
Square
Foot	 	 	Annualized Rental
Obligations Under
Expiring Leases with
future step-ups	 	 	Per
Square
Foot	 	
2017	 	 	76,188	 	 	$	2,835,098	 	 	$	37.21	 	 	$	2,835,098	 	 	$	37.21	(4) 	 	 	237,766	 	 	$	10,731,008	 	 	$	45.13	 	 	$	10,737,302	 	 	$	45.16	(4) 	
2018	 	 	90,983	 	 	 	3,225,365	 	 	 	35.45	 	 	 	3,251,766	 	 	 	35.74	 	 	 	403,473	 	 	 	19,551,747	 	 	 	48.46	 	 	 	20,306,186	 	 	 	50.33	 	
2019	 	 	175,322	 	 	 	6,409,383	 	 	 	36.56	 	 	 	6,498,636	 	 	 	37.07	 	 	 	702,941	 	 	 	28,393,803	 	 	 	40.39	 	 	 	28,875,987	 	 	 	41.08	 	
2020	 	 	322,090	 	 	 	11,145,340	 	 	 	34.60	 	 	 	11,607,870	 	 	 	36.04	 	 	 	915,327	 	 	 	37,594,596	 	 	 	41.07	 	 	 	38,984,034	 	 	 	42.59	 	
2021	 	 	129,889	 	 	 	4,122,516	 	 	 	31.74	 	 	 	4,247,539	 	 	 	32.70	 	 	 	749,465	 	 	 	34,320,056	 	 	 	45.79	 	 	 	37,192,545	 	 	 	49.63	 	
2022	 	 	82,247	 	 	 	2,813,349	 	 	 	34.21	 	 	 	3,034,502	 	 	 	36.89	 	 	 	746,044	 	 	 	32,625,488	 	 	 	43.73	 	 	 	36,345,576	 	 	 	48.72	 	
2023	 	 	44,145	 	 	 	1,452,098	 	 	 	32.89	 	 	 	1,436,010	 	 	 	32.53	 	 	 	482,947	 	 	 	23,338,013	 	 	 	48.32	 	 	 	26,557,103	 	 	 	54.99	 	
2024	 	 	391,546	 	 	 	13,596,211	 	 	 	34.72	 	 	 	14,390,887	 	 	 	36.75	 	 	 	468,766	 	 	 	21,903,047	 	 	 	46.72	 	 	 	24,680,230	 	 	 	52.65	 	
2025	 	 	269,850	 	 	 	9,651,912	 	 	 	35.77	 	 	 	10,984,045	 	 	 	40.70	 	 	 	459,843	 	 	 	18,968,636	 	 	 	41.25	 	 	 	22,252,149	 	 	 	48.39	 	
2026	 	 	165,045	 	 	 	5,331,401	 	 	 	32.30	 	 	 	6,079,238	 	 	 	36.83	 	 	 	85,508	 	 	 	4,321,382	 	 	 	50.54	 	 	 	5,184,786	 	 	 	60.64	 	
Thereafter	 	 	254,305	 	 	 	9,656,707	 	 	 	37.97	 	 	 	10,156,878	 	 	 	39.94	 	 	 	322,387	 	 	 	13,468,463	 	 	 	41.78	 	 	 	17,225,644	 	 	 	53.43	 	
 
(1)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(2)	Includes 100% of joint venture properties. 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.	
 
42

Table of Contents

SECOND QUARTER 2017
 
LEASING ACTIVITY
for the three months ended June 30, 2017
All In-Service Properties

 	  	Total	 	
Vacant space available @ 4/1/2017 (sf)	  	 	4,110,657	 	
Property dispositions/ properties taken out of service (sf)	  	 	(115,289	) 	
Properties acquired vacant space (sf)	  	 	15,944	 	
Properties placed in-service (sf) (1)	  	 	73,258	 	
Leases expiring or terminated 4/1/2017-6/30/2017 (sf)	  	 	1,261,949	 	
 	  	 	 	 	
Total space available for lease (sf)	  	 	5,346,519	 	
 	  	 	 	 	
1st generation leases (sf)	  	 	53,588	 	
2nd generation leases with new tenants (sf)	  	 	816,044	 	
2nd generation lease renewals (sf)	  	 	524,556	 	
 	  	 	 	 	
Total space leased (sf)	  	 	1,394,188	 	
 	  	 	 	 	
Vacant space available for lease @ 6/30/2017 (sf)	  	 	3,952,331	 	
 	  	 	 	 	
Net (increase)/decrease in available space (sf)	  	 	158,326	 	
Second generation leasing information: (2)	  	 	 	 	
Leases commencing during the period (sf)	  	 	1,340,600	 	
Weighted average lease term (months)	  	 	103	 	
Weighted average free rent period (days)	  	 	139	 	
Total transaction costs per square foot (3)	  	$	63.96	 	
Increase (decrease) in gross rents (4)	  	 	17.69	% 	
Increase (decrease) in net rents (5)	  	 	28.37	% 	

 	  	All leases
1st Generation (sf)	 	  	All leases
2nd Generation (sf)	 	  	Incr (decr)
in 2nd gen.
gross cash rents (4)	 	 	Incr (decr)
in 2nd gen.
net cash rents (5)	 	 	Total
Leased (sf) (6)	 	  	Total square feet of leases
executed in the quarter (7)	 	
Boston	  	 	18,950	 	  	 	541,163	 	  	 	17.52	% 	 	 	30.41	% 	 	 	560,113	 	  	 	234,750	 	
New York	  	 	—  	 	  	 	319,654	 	  	 	13.82	% 	 	 	22.50	% 	 	 	319,654	 	  	 	77,720	 	
San Francisco and Los Angeles	  	 	—  	 	  	 	254,263	 	  	 	39.64	% 	 	 	60.93	% 	 	 	254,263	 	  	 	407,112	 	
Washington, DC	  	 	34,638	 	  	 	225,520	 	  	 	(3.78	%) 	 	 	(5.22	%) 	 	 	260,158	 	  	 	207,675	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total / Weighted Average	  	 	53,588	 	  	 	1,340,600	 	  	 	17.69	% 	 	 	28.37	% 	 	 	1,394,188	 	  	 	927,257	 	

(1)	Total square feet of properties placed in service in Q2 2017 consist of 73,258 square feet at Reservoir Place North.	
(2)	Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,340,600 square feet of second generation leases that commenced in Q2 2017, leases for 1,070,719 square feet were signed in prior periods.	
(3)	Total transaction costs include tenant improvements and leasing commissions and 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 1,026,480 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 1,026,480 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 has 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 269,881.	
 
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Table of Contents

SECOND QUARTER 2017
 
ACQUISITIONS/DISPOSITIONS
as of June 30, 2017
ACQUISITIONS
For the period from January 1, 2017 through June 30, 2017

Property	  	Location	 	  	Date Acquired	 	  	Square Feet	 	  	Initial
Investment	 	  	Anticipated
Future
Investment	 	  	Total
Investment	 	  	Percentage
Leased	 	
103 Carnegie Center	  	 	Princeton, NJ	 	  	 	May 15, 2017	 	  	 	96,332	 	  	$	15,760,000	 	  	$	2,000,000	 	  	$	17,760,000	 	  	 	83	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Acquisitions	  	 	 	 	  	 	 	 	  	 	96,332	 	  	$	15,760,000	 	  	$	2,000,000	 	  	$	17,760,000	 	  	 	83	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
DISPOSITIONS
For the period from January 1, 2017 through June 30, 2017

Property	  	Location	 	  	Date Disposed	 	  	Square Feet	 	  	Gross
Sales Price	 	  	Net Cash
Proceeds	 	  	Book Gain	 	
30 Shattuck Road (land parcel)	  	 	Andover, MA	 	  	 	April 19, 2017	 	  	 	N/A	 	  	$	5,000,000	 	  	$	4,977,000	 	  	$	3,739,000	 	
40 Shattuck Road	  	 	Andover, MA	 	  	 	June 13, 2017	 	  	 	121,542	 	  	 	12,000,000	 	  	 	11,939,000	 	  	 	28,000	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Dispositions of Real Estate	  	 	 	 	  	 	 	 	  	 	121,542	 	  	$	17,000,000	 	  	$	16,916,000	 	  	$	3,767,000	 	

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SECOND QUARTER 2017
 
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS (1)
as of June 30, 2017

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	BXP’s Share	 	 	 	 	 	 	 	
Construction
Properties	 	Actual / Estimated
Initial Occupancy	 	 	Actual / Estimated
Stabilization Date	 	 	Location	 	 	# of
Buildings	 	 	Square
feet	 	 	Investment to
Date (2)	 	 	Estimated
Total
Investment (2)	 	 	Total
Financing	 	 	Amount
Drawn at
June 30,
2017	 	 	Estimated
Future Equity
Requirement
(2)	 	 	Percentage
Leased (3)	 	 	Percentage
Placed
in service (4)	 	
Office and Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
888 Boylston Street	 	 	Q3 2016	 	 	 	Q4 2017	 	 	 	Boston, MA	 	 	 	1	 	 	 	425,000	 	 	$	242,515,880	 	 	$	271,500,000	 	 	$	—  	 	 	$	—  	 	 	$	28,984,120	 	 	 	88	% 	 	 	31	% 	
Salesforce Tower (95% ownership)	 	 	Q1 2018	 	 	 	Q3 2019	 	 	 	San Francisco, CA	 	 	 	1	 	 	 	1,400,000	 	 	 	880,355,295	 	 	 	1,073,500,000	 	 	 	(25,389,074	) (5) 	 	 	(16,020,092	) (5) 	 	 	202,513,687	 	 	 	82	% 	 	 	—  	 	
The Hub on Causeway (50% ownership)	 	 	Q1 2019	 	 	 	Q4 2019	 	 	 	Boston, MA	 	 	 	1	 	 	 	385,000	 	 	 	38,845,919	 	 	 	141,870,000	 	 	 	—  	 	 	 	—  	 	 	 	103,024,081	 	 	 	42	% 	 	 	—  	 	
145 Broadway	 	 	Q4 2019	 	 	 	Q4 2019	 	 	 	Cambridge, MA	 	 	 	1	 	 	 	485,000	 	 	 	27,325,275	 	 	 	375,000,000	 	 	 	—  	 	 	 	—  	 	 	 	347,674,725	 	 	 	98	% 	 	 	 	 	
Dock 72 (50% ownership)	 	 	Q3 2018	 	 	 	Q1 2020	 	 	 	Brooklyn, NY	 	 	 	1	 	 	 	670,000	 	 	 	57,458,109	 	 	 	204,900,000	 	 	 	125,000,000	 	 	 	—  	 	 	 	22,441,891	 	 	 	33	% 	 	 	—  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Office Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5	 	 	 	3,365,000	 	 	$	1,246,500,478	 	 	$	2,066,770,000	 	 	$	99,610,926	 	 	$	(16,020,092	) 	 	$	704,638,504	 	 	 	71	% 	 	 	6	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Residential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Proto at Cambridge (274 units)	 	 	Q2 2018	 	 	 	Q2 2019	 	 	 	Cambridge, MA	 	 	 	1	 	 	 	164,000	 	 	$	45,812,467	 	 	$	140,170,000	 	 	$	—  	 	 	$	—  	 	 	$	94,357,533	 	 	 	N/A	 	 	 	—  	 	
Signature at Reston (508 units)	 	 	Q1 2018	 	 	 	Q2 2020	 	 	 	Reston, VA	 	 	 	1	 	 	 	490,000	 	 	 	144,982,071 	(6) 	 	 	234,854,000	(6) 	 	 	—  	 	 	 	—  	 	 	 	89,871,929	 	 	 	N/A	 	 	 	—  	 	
Signature at Reston—Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	 	 	 	24,600	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	81	% 	 	 	—  	 	
MacArthur Station Residences (402 units) (7)	 	 	Q2 2020	 	 	 	Q4 2021	 	 	 	Oakland, CA	 	 	 	1	 	 	 	324,000	 	 	 	1,841,497	 	 	 	263,600,000	 	 	 	—  	 	 	 	—  	 	 	 	261,758,503	 	 	 	N/A	 	 	 	—  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Residential Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	3	 	 	 	1,002,600	 	 	$	192,636,035	 	 	$	638,624,000	 	 	$	—  	 	 	$	—  	 	 	$	445,987,965	 	 	 	59	% (8) 	 	 	—  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Redevelopment Properties	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
191 Spring Street	 	 	Q4 2017	 	 	 	Q4 2018	 	 	 	Lexington, MA	 	 	 	1	 	 	 	160,000	 	 	$	14,865,547	 	 	$	53,920,000	 	 	$	—  	 	 	$	—  	 	 	$	39,054,453	 	 	 	49	% 	 	 	—  	 	
One Five Nine East 53rd (55% ownership) (9)	 	 	Q4 2018	 	 	 	Q4 2019	 	 	 	New York, NY	 	 	 	—  	 	 	 	220,000	 	 	 	38,677,085	 	 	 	106,000,000	 	 	 	—  	 	 	 	—  	 	 	 	67,322,915	 	 	 	—  	 	 	 	—  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Redevelopment Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	380,000	 	 	$	53,542,632	 	 	$	159,920,000	 	 	$	—  	 	 	$	—  	 	 	$	106,377,368	 	 	 	21	% 	 	 	—  	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Properties Under Construction and Redevelopment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9	 	 	 	4,747,600	 	 	$	1,492,679,145	 	 	$	2,865,314,000	 	 	$	99,610,926	 	 	$	(16,020,092	) 	 	$	1,257,003,837	 	 	 	66	% (8) 	 	 	5	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PROJECTS FULLY PLACED IN-SERVICE DURING 2017

 	  	 	 	  	 	 	  	 	 	  	 	 	  	 	 	  	BXP’s Share	 	
 	  	Actual / Estimated
Initial Occupancy	 	  	Actual / Estimated
Stabilization Date	 	  	Location	 	  	# of
Buildings	 	  	Square
feet	 	  	Investment
to Date (2)	 	  	Estimated
Total
Investment
(2)	 	  	Total
Financing	 	  	Amount
Drawn
at
June 30,
2017	 	  	Estimated
Future
Equity
Requirement
(2)	 	  	Percentage
Leased (3)	 	
Prudential Center Retail Expansion	  	 	Q1 2016	 	  	 	Q3 2017	 	  	 	Boston, MA	 	  	 	—  	 	  	 	15,000	 	  	$	9,589,169	 	  	$	10,760,000	 	  	$	—  	 	  	$	—  	 	  	$	1,170,831	 	  	 	100	% 	
Reservoir Place North	  	 	Q1 2018	 	  	 	Q1 2018	 	  	 	Waltham, MA	 	  	 	1	 	  	 	73,000	 	  	 	16,139,546	 	  	 	24,510,000	 	  	 	—  	 	  	 	—  	 	  	 	8,370,454	 	  	 	—  	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Projects placed In-Service	  	 	 	 	  	 	 	 	  	 	 	 	  	 	1	 	  	 	88,000	 	  	$	25,728,715	 	  	$	35,270,000	 	  	$	—  	 	  	$	—  	 	  	$	9,541,285	 	  	 	17	% 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
IN-SERVICE PROPERTIES HELD FOR REDEVELOPMENT

 	  	Sub Market	 	  	# of
Buildings	 	  	Existing
Square Feet	 	  	Leased
%	 	 	Annualized
Rental Obligations
Per Leased SF (10)	 	  	Encumbered
with secured
debt (Y/N)	 	  	Central Business
District (CBD) or
Suburban (S)	 	  	Incremental Estimated
Future SF (11)	 	
North First Business Park	  	 	San Jose CA	 	  	 	5	 	  	 	190,636	 	  	 	87.2	% 	 	$	23.03	 	  	 	N	 	  	 	S	 	  	 	1,359,364	 	
3625-3635 Peterson Way	  	 	Santa Clara CA	 	  	 	1	 	  	 	218,366	 	  	 	100.0	% 	 	 	22.22	 	  	 	N	 	  	 	S	 	  	 	413,690	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Properties held for Redevelopment	  	 	 	 	  	 	6	 	  	 	409,002	 	  	 	94.0	% 	 	$	22.57	 	  	 	 	 	  	 	 	 	  	 	1,773,054	 	

(1)	A project is classified as Construction in Progress when construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and capitalized interest has commenced.	
(2)	Includes income (loss) and interest carry on debt and equity investment.	
(3)	Represents percentage leased as of July 28, 2017, including leases with future commencement dates and excluding residential units.	
(4)	Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.	
(5)	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, structured as preferred equity. The Company will fund approximately $25.4 million at a rate of LIBOR plus 3.0% per annum and receive priority distributions from all distributions to its partner until the principal and interest are repaid. As of June 30, 2017, the Company has funded $16,020,092.	
(6)	Includes approximately $17 million for overbuilding parking structure to support future development requirements and excludes $10 million of the purchase price for the site that is allocated to rights for future development in Reston Town Center.	
(7)	Project is subject to a 90 year ground lease (including extension options) with an option to purchase in the future.	
(8)	Includes approximately 9,000 square feet of retail space at the Proto at Cambridge residential development, which is 0% leased.	
(9)	The low-rise portion of 601 Lexington Avenue.	
(10)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(11)	Incremental Future Square Footage is included in Approximate Developable Square Feet of Value Creation Pipeline - Owned Land Parcels and Land Purchase Options on page 46.	
 
45

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SECOND QUARTER 2017
 
VALUE CREATION PIPELINE
as of June 30, 2017
Owned Land Parcels

Location	  	Approximate
Developable
Square Feet	 	
San Jose, CA (1)	  	 	2,199,000	 	
Reston, VA	  	 	1,160,000	 	
Waltham, MA	  	 	805,000	 	
Springfield, VA	  	 	800,000	 	
Rockville, MD	  	 	759,000	 	
Washington, DC (50% ownership)	  	 	520,000	 	
Santa Clara, CA (1)	  	 	414,000	 	
Marlborough, MA	  	 	400,000	 	
Boston, MA (50% Ownership)	  	 	320,000	 	
Dulles, VA	  	 	310,000	 	
Annapolis, MD (50% ownership)	  	 	300,000	 	
Gaithersburg, MD	  	 	240,000	 	
 	  	 	 	 	
 	  	 	8,227,000	 	
 	  	 	 	 	
Land Purchase Options

Location	  	Approximate
Developable
Square Feet	 	
Princeton, NJ	  	 	1,650,000	 	
Boston, MA	  	 	1,300,000	 	
Cambridge, MA	  	 	623,000	 	
Brooklyn, NY (50% ownership)	  	 	600,000	 	
Boston, MA (50% ownership)	  	 	525,000	 	
Washington, DC	  	 	482,000	 	
San Francisco, CA	  	 	TBD	 	
 	  	 	 	 	
 	  	 	5,180,000	 	

(1)	Excludes the existing square footage related to in-service properties being held for future re-development included on page 45.	
 
46

Table of Contents

SECOND QUARTER 2017
 
DEFINITIONS
This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this supplemental report and, where 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 filed with or furnished to the SEC from time to time.
The Company also presents “BXP’s Share” of certain of these measures which is defined as the consolidated amount, plus the Company’s share of the amount from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), minus the Company’s partners’ share of the amount from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). 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 it includes the Company’s share of the applicable amount from unconsolidated joint ventures and excludes the Company’s partners’ share from consolidated joint ventures. 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.
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 total possible revenue less vacancy loss as a percentage of total possible revenue. 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 Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted monthly average number of occupied units.
Average Physical Occupancy
Average Physical Occupancy is defined as the average number of occupied units divided by the total number of units, expressed as a percentage.
Debt to Market Capitalization Ratio
Consolidated Debt to Consolidated Market Capitalization Ratio is defined as consolidated debt as a percentage of the market value of the Company’s outstanding equity securities plus the Company’s consolidated debt, and it is a measure of leverage commonly used by analysts in the REIT sector. Consolidated Market Capitalization is the sum of (A) the Company’s consolidated debt plus (B) 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 and (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 plus (C) 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, 2015, 2016 and 2017 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 does 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.
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, fair value interest adjustment 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.
 
47

Table of Contents

SECOND QUARTER 2017
 
DEFINITIONS (continued)
Funds from Operations (FFO)
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”), 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, real estate-related depreciation and amortization, and the Company’s share of income (loss) from unconsolidated partnerships and joint ventures. 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 accordance with 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.
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 vary. 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 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, transaction costs, depreciation and amortization and interest expense, less (2) gains on sales of real estate, development and management services income, income from unconsolidated joint ventures, interest and other income, gains from investments in securities and gains from early extinguishments of debt. In some cases the Company also presents (1)  NOI – cash,  which is NOI after eliminating the effects of straight-lining of rent, fair value lease revenue, ground rent expense and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (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, 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, 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.
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 27-29 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”
 
48

Exhibit 99.2

800 Boylston Street
Boston, MA 02199
BOSTON PROPERTIES ANNOUNCES
SECOND QUARTER 2017 RESULTS
BOSTON, MA, August 1, 2017 - Boston Properties, Inc. (NYSE: BXP), a real estate investment trust and one of the largest owners, managers and developers of Class A office properties in the United States, reported results today for the second quarter ended June 30, 2017.
 
 	•	 	Net income attributable to common shareholders was $133.7 million compared to $96.6 million for the quarter ended June 30, 2016.	
 
 	•	 	Net income attributable to common shareholders per share (EPS) was $0.87 basic and $0.87 on a diluted basis, compared to $0.63 basic and $0.63 on a diluted basis for the quarter ended June 30, 2016.	
 
 	•	 	Funds from Operations (FFO) were $257.9 million, or $1.67 per share basic and $1.67 per share diluted. This compares to FFO of $220.6 million, or $1.44 per share basic and $1.43 per share diluted, for the quarter ended June 30, 2016.	
 
 	•	 	FFO of $1.67 per share diluted was greater than the mid-point of the Company’s guidance previously provided of $1.61—$1.63 per share diluted primarily due to:	
 
 	–	$0.02 per share increase in portfolio revenue;	
 
 	–	$0.02 per share due to the deferral of certain expenses from the second quarter of 2017 to the second half of 2017; and	
 
 	–	$0.01 per share of additional development and management services revenue.	
 
 	•	 	The Company increased its guidance for full year 2017 EPS and FFO per share as follows:	
 
 	•	 	Increased projected EPS (diluted) for 2017 to $2.72—$2.77 per share, an $0.11 per share increase at the midpoint.	
 
 	•	 	Increased projected FFO per share (diluted) for 2017 to $6.20—$6.25 per share, a $0.04 per share increase at the midpoint.	
 
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 	•	 	Weighted-average number of basic and diluted shares outstanding totaled approximately 154,177,000 and 154,331,000, respectively.  This compares with 153,662,000 and 153,860,000 for the quarter ended June 30, 2016.	
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 ended June 30, 2017. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
At June 30, 2017, the Company’s portfolio consisted of 175 properties aggregating approximately 48.4 million square feet, including nine properties under construction/redevelopment totaling approximately 4.7 million square feet. The overall percentage of leased space for the 163 properties in service (excluding the Company’s two residential properties and hotel) as of June 30, 2017 was 90.8%.
Significant events during the second quarter included:
Development activities
 
•	 	On April 6, 2017, the Company commenced the development of 145 Broadway, a build-to-suit Class A office project with approximately 485,000 net rentable square feet located in Cambridge, Massachusetts. The property is 98% leased.	
 
•	 	On May 27, 2017, the Company completed and fully placed in-service Reservoir Place North, a Class A office redevelopment project with approximately 73,000 net rentable square feet located in Waltham, Massachusetts. The property is 0% leased.	
 
•	 	On June 29, 2017, the Company executed a 99-year ground lease (including extension options), with the right to purchase prior to 10 years after stabilization, land adjacent to the MacArthur BART station located in Oakland, California. The Company has commenced development of a 402-unit residential building and supporting retail space on the site.	
 
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Acquisition and disposition activities
 
•	 	On April 19, 2017, the Company completed the sale of an approximately 9.5-acre parcel of land at 30 Shattuck Road located in Andover, Massachusetts for a gross sale price of $5.0 million. Net cash proceeds totaled approximately $5.0 million, resulting in a gain on sale of real estate totaling approximately $3.7 million.	
 
•	 	On May 15, 2017, the Company acquired 103 Carnegie Center located in Princeton, New Jersey for a purchase price of approximately $15.8 million in cash. 103 Carnegie Center is an approximately 96,000 net rentable square foot Class A office property. The property is 83% leased.	
 
•	 	On June 13, 2017, the Company completed the sale of 40 Shattuck Road located in Andover, Massachusetts for a gross sale price of $12.0 million. Net cash proceeds totaled approximately $11.9 million, resulting in a gain on sale of real estate totaling approximately $28,000. 40 Shattuck Road is an approximately 122,000 net rentable square foot Class A office property. The property is 71% leased.	
Capital markets activities
 
•	 	On April 24, 2017, the Company’s Operating Partnership amended and restated its revolving credit agreement (as amended and restated, the “2017 Credit Facility”). Among other things, the amendment and restatement (1) increased the total commitment of the revolving line of credit (the “Revolving Facility”) from $1.0 billion to $1.5 billion, (2) extended the maturity date from July 26, 2018 to April 24, 2022, (3) reduced the per annum variable interest rates, and (4) added a $500.0 million delayed draw term loan facility (the “Delayed Draw Facility”) that permits the Company’s Operating Partnership to draw until the first anniversary of the closing date. Based on the Company’s Operating Partnership’s current credit rating, (1) the applicable Eurocurrency margins for the Revolving Facility and Delayed Draw Facility are 87.5 basis points and 95 basis points, respectively, and (2) the facility fee on the Revolving Facility commitment is 0.15% per annum. The Delayed Draw Facility has a fee on unused commitments equal to 0.15% per annum. For additional detail on the terms and conditions of the 2017 Credit Facility, refer to the Company’s Form 8-K filed on April 25, 2017.	
 
•	 	On June 2, 2017, the Company renewed its “at the market” (“ATM”) stock offering program through which it may sell from time to time up to an aggregate of $600.0 million of its common stock through sales agents over a three-year period. This program replaces the Company’s prior $600.0 million ATM stock offering program that was scheduled to expire on June 3, 2017. The Company intends to use the net proceeds from any offering for general	
 
–more–

 	business purposes, which may include investment opportunities and debt reduction. No shares of common stock have been issued under this ATM stock offering program.	
 
•	 	On June 7, 2017, the Company’s consolidated entity in which it has a 60% interest and that owns 767 Fifth Avenue (the General Motors Building) located in New York City completed the refinancing of approximately $1.6 billion of indebtedness that had been secured by direct and indirect interests in 767 Fifth Avenue. The new mortgage financing has a principal amount of $2.3 billion, bears interest at a fixed interest rate of 3.43% per annum and matures on June 9, 2027. The loan requires interest-only payments during the 10-year term of the loan, with the entire principal amount due at maturity. The extinguished debt bore interest at a weighted-average rate of approximately 5.96% per annum, an effective GAAP interest rate of approximately 3.03% per annum and was scheduled to mature on October 7, 2017. There was no prepayment penalty associated with the repayment of the prior indebtedness. The Company recognized a net gain from early extinguishment of debt totaling approximately $14.6 million primarily consisting of the acceleration of the remaining balance related to the historical fair value debt adjustment. On April 24, 2017, the Company’s consolidated entity entered into an interest rate lock and commitment agreement for the financing. In conjunction with the interest rate lock and commitment agreement, the consolidated entity terminated its forward-starting interest rate swap contracts with notional amounts aggregating $450.0 million and cash-settled the contracts by making cash payments to the counterparties aggregating approximately $14.4 million, which amount will increase the Company’s interest expense over the ten-year term of the financing, resulting in an effective GAAP interest rate on the financing of approximately 3.64% per annum, inclusive of the amortization of financing costs and additional mortgage recording taxes.	
Transactions completed subsequent to June 30, 2017:
 
•	 	On July 28, 2017, a joint venture in which the Company has a 50% interest obtained mortgage financing collateralized by its Colorado Center property totaling $550.0 million. The mortgage financing bears interest at a fixed rate of 3.56% per annum and matures on August 9, 2027. The loan requires interest-only payments during the 10-year term of the loan, with the entire principal amount due at maturity. Colorado Center is a six-building office complex that sits on a 15-acre site and contains an aggregate of approximately 1,184,000 net rentable square feet with an underground parking garage for 3,100 vehicles located in Santa Monica, California.	
 
•	 	On July 26, 2017, a joint venture between the Company and The Bernstein Companies entered into a build-to-suit lease agreement with an affiliate of Marriott International, Inc.	
 
–more–

 	under which Marriott will lease 100% of an approximately 720,000 square foot office building and below-grade parking garage to be constructed by the joint venture at 7750 Wisconsin Avenue in Bethesda, Maryland. The office building will be leased to Marriott for 20 years on a net basis and will serve as Marriott’s world-wide headquarters. The Company and The Bernstein Companies will each own a 50% interest in the joint venture. The Company will serve as development manager for the venture and expects to commence construction in 2018. Marriott has agreed to fund 100% of the related tenant improvement costs and leasing commissions for the office building.	
 
•	 	Since June 30, 2017, the Company has signed leases aggregating approximately 1.3 million square feet, including a 720,000 square foot lease with Marriott and a 220,000 square foot lease renewal with Aramis (Estee Lauder) at 767 Fifth Avenue (the General Motors Building). From January 1, 2017 through July 31, 2017, the Company has leased an aggregate of approximately 2.8 million square feet.	
EPS and FFO per Share Guidance:
The Company’s guidance for the third quarter and full year 2017 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 referred to below. 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. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.
As shown below, the Company has updated its projected EPS (diluted) for the full year 2017 to $2.72—$2.77 per share from $2.60—$2.68 per share. This is an increase of $0.11 per share at the mid-point consisting primarily of lower projected depreciation and amortization expense of $0.07 per share, $0.04 per share improvement in same property net operating income (“NOI”), a $0.01 per share increase in development and management services revenue, offset by a $0.01 decrease from the Company’s recent financing activities.
 
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Additionally, the Company has updated its projected FFO per share (diluted) for the full year 2017 to $6.20—$6.25 per share from $6.15—$6.23 per share. This is an increase of $0.04 per share at the midpoint consisting primarily of a $0.04 per share improvement in same property NOI, a $0.01 per share increase in development and management services revenue, offset by a $0.01 decrease from the Company’s recent financing activities.

 	  	Third Quarter 2017	 	  	Full Year 2017	 	
 	  	Low	 	  	—  	 	  	High	 	  	Low	 	  	—  	 	  	High	 	
Projected EPS (diluted)	  	$	0.65	 	  	 	—  	 	  	$	0.67	 	  	$	2.72	 	  	 	—  	 	  	$	2.77	 	
Add:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Projected Company Share of Real Estate Depreciation and Amortization	  	 	0.87	 	  	 	—  	 	  	 	0.87	 	  	 	3.50	 	  	 	—  	 	  	 	3.50	 	
Less:	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Projected Company Share of Gains on Sales of Real Estate	  	 	—  	 	  	 	—  	 	  	 	—	 	  	 	0.02	 	  	 	—  	 	  	 	0.02	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Projected FFO per Share (diluted)	  	$	1.52	 	  	 	—  	 	  	$	1.54	 	  	$	6.20	 	  	 	—  	 	  	$	6.25	 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Boston Properties will host a conference call on Wednesday, August 2, 2017 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter 2017 results, the 2017 projections and related assumptions, and other related 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 41585284. A replay of the conference call will be available through August 16, 2017, by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 41585284. There will also be a live audio webcast of the call which may be accessed on the Company’s website at www.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.
Additionally, a copy of Boston Properties’ second quarter 2017 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at www.bostonproperties.com .
 
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Boston Properties is a fully integrated real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of primarily Class A office space totaling 48.4 million square feet and consisting of 164 office properties (including six properties under construction), five retail properties, five residential properties (including three properties under construction) and one hotel. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in five markets—Boston, Los Angeles, New York, San Francisco and Washington, DC.
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 third quarter and full fiscal year 2017, 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)

 	  	June 30, 2017	 	 	December 31, 2016	 	
 	  	(in thousands, except for share and par
value amounts)	 	
ASSETS	  	 	 	 	 	 	 	 	
Real estate, at cost	  	$	19,015,077	 	 	$	18,862,648	 	
Construction in progress	  	 	1,348,838	 	 	 	1,037,959	 	
Land held for future development	  	 	250,451	 	 	 	246,656	 	
Less: accumulated depreciation	  	 	(4,379,446	) 	 	 	(4,222,235	) 	
 	  	 	 	 	 	 	 	 	
Total real estate	  	 	16,234,920	 	 	 	15,925,028	 	
Cash and cash equivalents	  	 	492,435	 	 	 	356,914	 	
Cash held in escrows	  	 	47,345	 	 	 	63,174	 	
Investments in securities	  	 	26,781	 	 	 	23,814	 	
Tenant and other receivables, net	  	 	88,687	 	 	 	92,548	 	
Accrued rental income, net	  	 	820,022	 	 	 	799,138	 	
Deferred charges, net	  	 	658,219	 	 	 	686,163	 	
Prepaid expenses and other assets	  	 	93,985	 	 	 	129,666	 	
Investments in unconsolidated joint ventures	  	 	819,368	 	 	 	775,198	 	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	19,281,762	 	 	$	18,851,643	 	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	
Mortgage notes payable, net	  	$	2,986,283	 	 	$	2,063,087	 	
Unsecured senior notes, net	  	 	7,250,356	 	 	 	7,245,953	 	
Unsecured line of credit	  	 	—  	 	 	 	—  	 	
Unsecured term loan	  	 	—  	 	 	 	—  	 	
Mezzanine notes payable	  	 	—  	 	 	 	307,093	 	
Outside members’ notes payable	  	 	—  	 	 	 	180,000	 	
Accounts payable and accrued expenses	  	 	303,559	 	 	 	298,524	 	
Dividends and distributions payable	  	 	130,432	 	 	 	130,308	 	
Accrued interest payable	  	 	85,172	 	 	 	243,933	 	
Other liabilities	  	 	452,608	 	 	 	450,821	 	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	11,208,410	 	 	 	10,919,719	 	
 	  	 	 	 	 	 	 	 	
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 June 30, 2017 and December 31, 2016	  	 	200,000	 	 	 	200,000	 	
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,386,429 and 153,869,075 issued and 154,307,529 and 153,790,175 outstanding at June 30, 2017 and December 31, 2016, respectively	  	 	1,543	 	 	 	1,538	 	
Additional paid-in capital	  	 	6,363,034	 	 	 	6,333,424	 	
Dividends in excess of earnings	  	 	(694,320	) 	 	 	(693,694	) 	
Treasury common stock at cost, 78,900 shares at June 30, 2017 and December 31, 2016	  	 	(2,722	) 	 	 	(2,722	) 	
Accumulated other comprehensive loss	  	 	(53,161	) 	 	 	(52,251	) 	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Boston Properties, Inc.	  	 	5,814,374	 	 	 	5,786,295	 	
Noncontrolling interests:	  	 	 	 	 	 	 	 	
Common units of the Operating Partnership	  	 	604,997	 	 	 	614,982	 	
Property partnerships	  	 	1,653,981	 	 	 	1,530,647	 	
 	  	 	 	 	 	 	 	 	
Total equity	  	 	8,073,352	 	 	 	7,931,924	 	
 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	19,281,762	 	 	$	18,851,643	 	

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

 	  	Three months ended
June 30,	 	 	Six months ended June 30,	 	
 	  	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	  	(in thousands, except for per share amounts)	 	
Revenue	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rent	  	$	520,542	 	 	$	493,386	 	 	$	1,024,104	 	 	$	1,029,514	 	
Recoveries from tenants	  	 	89,163	 	 	 	85,706	 	 	 	178,327	 	 	 	175,292	 	
Parking and other	  	 	26,462	 	 	 	26,113	 	 	 	52,072	 	 	 	50,938	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total rental revenue	  	 	636,167	 	 	 	605,205	 	 	 	1,254,503	 	 	 	1,255,744	 	
Hotel revenue	  	 	13,375	 	 	 	12,808	 	 	 	20,795	 	 	 	21,565	 	
Development and management services	  	 	7,365	 	 	 	5,533	 	 	 	13,837	 	 	 	12,222	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	656,907	 	 	 	623,546	 	 	 	1,289,135	 	 	 	1,289,531	 	

Expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	230,454	 	 	 	217,938	 	 	 	458,741	 	 	 	437,110	 	
Hotel	  	 	8,404	 	 	 	7,978	 	 	 	15,495	 	 	 	15,612	 	
General and administrative	  	 	27,141	 	 	 	25,418	 	 	 	58,527	 	 	 	54,771	 	
Transaction costs	  	 	299	 	 	 	913	 	 	 	333	 	 	 	938	 	
Depreciation and amortization	  	 	151,919	 	 	 	153,175	 	 	 	311,124	 	 	 	312,623	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	418,217	 	 	 	405,422	 	 	 	844,220	 	 	 	821,054	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	238,690	 	 	 	218,124	 	 	 	444,915	 	 	 	468,477	 	
Other income (expense)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from unconsolidated joint ventures	  	 	3,108	 	 	 	2,234	 	 	 	6,192	 	 	 	4,025	 	
Interest and other income	  	 	1,504	 	 	 	1,524	 	 	 	2,118	 	 	 	3,029	 	
Gains from investments in securities	  	 	730	 	 	 	478	 	 	 	1,772	 	 	 	737	 	
Gains from early extinguishments of debt	  	 	14,354	 	 	 	—  	 	 	 	14,354	 	 	 	—  	 	
Interest expense	  	 	(95,143	) 	 	 	(105,003	) 	 	 	(190,677	) 	 	 	(210,312	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	117,357	 	 	 	278,674	 	 	 	265,956	 	
Gains on sales of real estate	  	 	3,767	 	 	 	—  	 	 	 	3,900	 	 	 	67,623	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	167,010	 	 	 	117,357	 	 	 	282,574	 	 	 	333,579	 	
Net income attributable to noncontrolling interests	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	  	 	(15,203	) 	 	 	(6,814	) 	 	 	(19,627	) 	 	 	(17,278	) 	
Noncontrolling interest—common units of the Operating Partnership	  	 	(15,473	) 	 	 	(11,357	) 	 	 	(26,933	) 	 	 	(32,771	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	136,334	 	 	 	99,186	 	 	 	236,014	 	 	 	283,530	 	
Preferred dividends	  	 	(2,625	) 	 	 	(2,589	) 	 	 	(5,250	) 	 	 	(5,207	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	96,597	 	 	$	230,764	 	 	$	278,323	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	0.87	 	 	$	0.63	 	 	$	1.50	 	 	$	1.81	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of common shares outstanding	  	 	154,177	 	 	 	153,662	 	 	 	154,019	 	 	 	153,644	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	0.87	 	 	$	0.63	 	 	$	1.50	 	 	$	1.81	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of common and common equivalent shares outstanding	  	 	154,331	 	 	 	153,860	 	 	 	154,273	 	 	 	153,889	 	

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

 	  	Three months ended
June 30,	 	 	Six months ended
June 30,	 	
 	  	2017	 	 	2016	 	 	2017	 	 	2016	 	
 	  	(in thousands, except for per share amounts)	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	133,709	 	 	$	96,597	 	 	$	230,764	 	 	$	278,323	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,625	 	 	 	2,589	 	 	 	5,250	 	 	 	5,207	 	
Noncontrolling interest—common units of the Operating Partnership	  	 	15,473	 	 	 	11,357	 	 	 	26,933	 	 	 	32,771	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	6,814	 	 	 	19,627	 	 	 	17,278	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	3,767	 	 	 	—	 	 	 	3,900	 	 	 	67,623	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	163,243	 	 	 	117,357	 	 	 	278,674	 	 	 	265,956	 	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	151,919	 	 	 	153,175	 	 	 	311,124	 	 	 	312,623	 	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(19,327	) 	 	 	(19,369	) 	 	 	(40,742	) 	 	 	(38,924	) 	
Company’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,629	 	 	 	4,618	 	 	 	18,670	 	 	 	9,114	 	
Corporate-related depreciation and amortization	  	 	(486	) 	 	 	(362	) 	 	 	(1,011	) 	 	 	(726	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	  	 	15,203	 	 	 	6,814	 	 	 	19,627	 	 	 	17,278	 	
Preferred dividends	  	 	2,625	 	 	 	2,589	 	 	 	5,250	 	 	 	5,207	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.)	  	 	287,150	 	 	 	246,016	 	 	 	541,838	 	 	 	525,558	 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations	  	 	29,269	 	 	 	25,421	 	 	 	55,593	 	 	 	54,277	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations attributable to Boston Properties, Inc. common shareholders	  	$	257,881	 	 	$	220,595	 	 	$	486,245	 	 	$	471,281	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of funds from operations—basic	  	 	89.81	% 	 	 	89.67	% 	 	 	89.74	% 	 	 	89.67	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - basic	  	 	154,177	 	 	 	153,662	 	 	 	154,019	 	 	 	153,644	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share basic	  	$	1.67	 	 	$	1.44	 	 	$	3.16	 	 	$	3.07	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding—diluted	  	 	154,331	 	 	 	153,860	 	 	 	154,273	 	 	 	153,889	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share diluted	  	$	1.67	 	 	$	1.43	 	 	$	3.15	 	 	$	3.06	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(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, real estate-related depreciation and amortization, and our share of income (loss) from unconsolidated partnerships and joint ventures. 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.	
 
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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.
 
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BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES

 	  	% Leased by Location	 	
 	  	June 30, 2017	 	 	December 31, 2016	 	
Boston	  	 	92.6	% 	 	 	90.7	% 	
New York	  	 	88.7	% 	 	 	90.2	% 	
San Francisco and Los Angeles	  	 	90.4	% 	 	 	89.8	% 	
Washington, DC	  	 	90.9	% 	 	 	89.9	% 	
 	  	 	 	 	 	 	 	 	
Total Portfolio	  	 	90.8	% 	 	 	90.2	% 	
 	  	 	 	 	 	 	 	 	
AT THE COMPANY
Michael LaBelle
Executive Vice President,
Chief Financial Officer and Treasurer
(617) 236-3352
Arista Joyner
Investor Relations Manager
(617) 236-3343
 
###