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): October 25, 2016

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))	

 

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 October 25, 2016, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the third quarter of 2016. 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 September 30, 2016.	
 	 	
*99.2	  	Press release dated October 25, 2016.	
 
*	Filed herewith.	
 
2

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: October 25, 2016
 
3

EXHIBIT INDEX

Exhibit No.	  	Description	
 	 	
*99.1	  	Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2016.	
 	 	
*99.2	  	Press release dated October 25, 2016.	
 
*	Filed herewith.	
 
4

Exhibit 99.1

 

Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2016

THIRD QUARTER 2016
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 to Same Property Performance and Net Income	  	 	21-23	  	
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,” “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 hereof 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 photo: Renderings of Dock72, Brooklyn, NY)
 
2

THIRD QUARTER 2016
 
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 first-class 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. The Company acquires, develops and manages its properties through full-service regional offices. Its property portfolio is comprised primarily of Class A office properties, five retail properties, four residential properties (including two 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 30 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 carefully 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) 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 and (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;	
 
 	•	 	be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing into economic growth and selectively selling assets to either take advantage of the demand for our premier properties or pare from the portfolio properties that we believe have slower future growth potential, 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.	

Snapshot
(as of September 30, 2016)	  	 	
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)	  	174	
Total Square Feet (includes unconsolidated joint ventures)	  	47.7 million	
Common shares outstanding, plus common units and LTIP units (including Outperformance Plan Units and 2013 Multi-Year Long-Term Incentive Program (“MYLTIP”) Units when earned) on an as-converted basis (excludes 2014, 2015 and 2016 MYLTIP Units because not yet earned) (1)	  	171.8 million	
Dividend - Quarter/Annualized	  	$0.65/$2.60	
Dividend Yield	  	1.91%	
Consolidated Market Capitalization	  	$33.4 billion	
BXP’s Share of Combined Market Capitalization (2)	  	$32.6 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 Combined Market Capitalization and related disclosures, see page 47. For a quantitative reconciliation of Consolidated Market Capitalization to BXP’s Share of Combined Market Capitalization, see page 14.	
 
3

THIRD QUARTER 2016
 
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 & Corporate Governance Committee	  	Senior Executive Vice President	  	Executive Vice President,	 	
 	  	 	  	 	  	New York Region	 	 	
Owen D. Thomas	  	 	  	Michael E. LaBelle	  	 	 	 	
Chief Executive Officer and Director	  	Matthew J. Lustig	  	Executive Vice President, Chief Financial Officer and Treasurer	  	Frank D. Burt	 	 	
 	  	Director	  	 	  	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 Committee	  	 	  	 	 	 	 	
Carol B. Einiger	  	 	  	Robert E. Pester	  	 	 	 	 	 	
Director, Chair of Compensation Committee	  	 	  	Executive Vice President,	  	 	 	 	 	 	
 	  	 	  	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):

 	  	Q3 2016	 	 	Q2 2016	 	 	Q1 2016	 	 	Q4 2015	 	 	Q3 2015	 	
High Closing Price	  	$	143.61	  	 	$	133.13	  	 	$	127.26	  	 	$	130.15	  	 	$	126.32	  	
Low Closing Price	  	$	130.03	  	 	$	123.71	  	 	$	108.18	  	 	$	118.62	  	 	$	108.65	  	
Average Closing Price	  	$	138.78	  	 	$	128.38	  	 	$	118.69	  	 	$	124.47	  	 	$	119.54	  	
Closing Price, at the end of the quarter	  	$	136.29	  	 	$	131.90	  	 	$	127.08	  	 	$	127.54	  	 	$	118.40	  	
Dividends per share	  	$	0.65	  	 	$	0.65	  	 	$	0.65	  	 	$	0.65	  	 	$	0.65	  	
Special dividends per share	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	1.25	  	 	$	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total dividends	  	$	0.65	  	 	$	0.65	  	 	$	0.65	  	 	$	1.90	  	 	$	0.65	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Closing dividend yield - annualized	  	 	1.91	% 	 	 	1.97	% 	 	 	2.05	% 	 	 	3.02	%(1) 	 	 	2.20	% 	
Closing common shares outstanding, plus common units and LTIP units (including Outperformance Plan Units and 2013 MYLTIP Units when earned) on an as-converted basis (excludes 2014, 2015 and 2016 MYLTIP Units because not yet earned) (thousands) (2)	  	 	171,775	  	 	 	171,772	  	 	 	171,763	  	 	 	171,509	  	 	 	171,509	  	
Closing market value of outstanding shares and units (thousands)	  	$	23,611,215	  	 	$	22,856,727	  	 	$	22,027,642	  	 	$	22,074,258	  	 	$	20,506,666	  	
 
(1)	Includes the special dividend of $1.25 per share paid on January 28, 2016 to shareholders of record as of the close of business on December 31, 2015.	
(2)	For additional detail, see page 14.	

Timing	
Quarterly results for the next four quarters will be announced according to the following schedule:	
 	 	 	
Fourth Quarter, 2016	  	Tentatively January 31, 2017	  	 	
First Quarter, 2017	  	Tentatively April 25, 2017	  	 	
Second Quarter, 2017	  	Tentatively August 1, 2017	  	 	
Third Quarter, 2017	  	Tentatively November 1, 2017	  	 	
 
4

THIRD QUARTER 2016
 
RESEARCH COVERAGE

Equity Research Coverage	  	Debt Research Coverage	  	Rating Agencies	
Jacob Kilstein	  	Anthony Paolone	  	Andrew Mollay	  	Stephen Boyd	
Argus Research Company	  	J.P. Morgan Securities	  	Bank of America Merrill Lynch	  	Fitch Ratings	
646.747.5447	  	212.622.6682	  	646.855.6435	  	212.908.9153	
 	 	 	 	
Jeffrey Spector / Jamie Feldman	  	Craig Mailman / Jordan Sadler	  	Peter Troisi	  	Ranjini Venkatesan	
Bank of America Merrill Lynch	  	KeyBanc Capital Markets	  	Barclays	  	Moody’s Investors Service	
646.855.1363 / 646.855.5808	  	917.368.2316 / 917.368.2280	  	212.412.3695	  	212.553.3828	
 	 	 	 	
Ross Smotrich / Peter Siciliano	  	Richard Anderson	  	Thomas Cook	  	Anita Ogbara	
Barclays Capital	  	Mizuho Securities	  	Citi Investment Research	  	Standard & Poor’s	
212.526.2306 / 212.526.3098	  	212.205.8445	  	212.723.1112	  	212.438.5077	
 	 	 	 	
John Kim	  	Sumit Sharma / Vikram Malhotra	  	John Giordano	  	 	
BMO Capital	  	Morgan Stanley	  	Credit Suisse Securities	  	 	
212.885.4115	  	212.761.7567 / 212.761.7064	  	212.538.4935	  	 	
 	 	 	 	
Thomas Lesnick / Tom Catherwood	  	Mike Carroll	  	Ron Perrotta	  	 	
Capital One Securities	  	RBC Capital Markets	  	Goldman Sachs	  	 	
571.633.8191	  	440.715.2649	  	212.702.7885	  	 	
 	 	 	 	
Michael Bilerman / Emmanuel Korchman	  	David Rodgers / Richard Schiller	  	Mark Streeter	  	 	
Citigroup Global Markets	  	RW Baird	  	J.P. Morgan Securities	  	 	
212.816.1383 / 212.816.1382	  	216.737.7341 / 312.609.5485	  	212.834.5086	  	 	
 	 	 	 	
Barry Oxford	  	Alexander Goldfarb / Daniel Santos	  	Thierry Perrein / Jason Jones	  	 	
D.A. Davidson & Co.	  	Sandler O’Neill & Partners	  	Wells Fargo	  	 	
212.240.9871	  	212.466.7937 / 212.466.7927	  	704.715.8455 / 704.715.7932	  	 	
 	 	 	 	
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	  	 	  	 	
 	 	 	 	
Brad Burke	  	Nick Yulico	  	 	  	 	
Goldman Sachs	  	UBS Securities	  	 	  	 	
917.343.2082	  	212.713.3402	  	 	  	 	
 	 	 	 	
Jed Reagan / Tyler Grant	  	Blaine Heck	  	 	  	 	
Green Street Advisors	  	Wells Fargo Securities	  	 	  	 	
949.640.8780	  	443.263.6529	  	 	  	 	
 	 	 	 	
Jonathan Petersen / Omotayo Okusanya	  	 	  	 	  	 	
Jefferies & Co.	  	 	  	 	  	 	
212.284.1705 / 212.336.7076	  	 	  	 	  	 	
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

THIRD QUARTER 2016
 
GUIDANCE
 
The Company’s guidance for the full year 2016 and 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 and the earnings impact of the events referenced in the earnings release issued on October 25, 2016 and otherwise referenced during the Company’s conference call scheduled for October 26, 2016. 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.

 	  	Full Year 2016	 	  	Full Year 2017	 	
 	  	Low	 	 	 	 	  	High	 	  	Low	 	 	 	 	  	High	 	
Projected EPS (diluted)	  	$	2.98	  	 	 	-	  	  	$	3.00	  	  	$	2.58	  	 	 	-	  	  	$	2.76	  	
Add:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected Company share of real estate depreciation and amortization	  	 	3.46	  	 	 	-	  	  	 	3.46	  	  	 	3.47	  	 	 	-	  	  	 	3.47	  	
Less:	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected Company share of gains on sales of real estate	  	 	0.47	  	 	 	-	  	  	 	0.47	  	  	 	—  	  	 	 	-	  	  	 	—  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Projected FFO per share (diluted)	  	$	5.97	  	 	 	-	  	  	$	5.99	  	  	$	6.05	  	 	 	-	  	  	$	6.23	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
ASSUMPTIONS
(dollars in thousands)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Full Year 2016	 	 	Full Year 2017	 	
 	  	Low	 	 	 	 	  	High	 	 	Low	 	 	 	 	  	High	 	
Operating property activity:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Average In-service portfolio occupancy	  	 	89.0	% 	 	 	-	  	  	 	90.0	% 	 	 	90.0	% 	 	 	-	  	  	 	91.0	% 	
Increase (decrease) in BXP’s Share of Combined Same Property net operating income (1)	  	 	1.25	% 	 	 	-	  	  	 	1.75	% 	 	 	2.00	% 	 	 	-	  	  	 	3.50	% 	
Increase (decrease) in BXP’s Share of Combined Same Property net operating income — cash basis (1)	  	 	3.50	% 	 	 	-	  	  	 	4.00	% 	 	 	2.00	% 	 	 	-	  	  	 	4.00	% 	
BXP’s Share of Combined Non Same Properties’ incremental contribution over prior year	  	$	40,000	  	 	 	-	  	  	$	43,000	  	 	$	18,000	  	 	 	-	  	  	$	30,000	  	
BXP’s Share of Combined Straight-line rent and fair value lease revenue (non-cash revenue)	  	$	60,000	  	 	 	-	  	  	$	64,000	  	 	$	50,000	  	 	 	-	  	  	$	70,000	  	
Hotel net operating income	  	$	13,000	  	 	 	-	  	  	$	14,000	  	 	$	13,000	  	 	 	-	  	  	$	15,000	  	
Lease termination fees	  	$	58,000	  	 	 	-	  	  	$	59,000	  	 	$	4,000	  	 	 	-	  	  	$	5,000	  	
Other income (expense):	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Development and management services income	  	$	24,000	  	 	 	-	  	  	$	25,000	  	 	$	24,000	  	 	 	-	  	  	$	28,000	  	
General and administrative expense	  	$	(107,000	) 	 	 	-	  	  	$	(104,000	) 	 	$	(114,000	) 	 	 	-	  	  	$	(108,000	) 	
Net interest expense	  	$	(407,000	) 	 	 	-	  	  	$	(403,000	) 	 	$	(391,000	) 	 	 	-	  	  	$	(378,000	) 	
Noncontrolling interest:	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Noncontrolling interest in property partnerships’ share of FFO	  	$	(102,000	) 	 	 	-	  	  	$	(104,000	) 	 	$	(105,000	) 	 	 	-	  	  	$	(90,000	) 	
 
(1)	Increase (decrease) in Combined Same Property Net Operating Income and Combined Same Property Net Operating Income – cash basis is assumed to be 0.25%-0.75% and 2.50%-3.00%, respectively. Full year 2016 and 2017 percentages are assumed changes from 2015 and 2016, respectively.	
 
6

THIRD QUARTER 2016
 
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 the non-GAAP financial measures the Company presents 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 can be found on pages 47-48.

 	  	Three Months Ended	 	
 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	96,597	  	 	$	181,747	  	 	$	137,851	  	 	$	184,082	  	
Net income attributable to Boston Properties, Inc. per share - basic	  	$	0.50	  	 	$	0.63	  	 	$	1.18	  	 	$	0.90	  	 	$	1.20	  	
Net income attributable to Boston Properties, Inc. per share - diluted	  	$	0.50	  	 	$	0.63	  	 	$	1.18	  	 	$	0.90	  	 	$	1.20	  	
FFO attributable to Boston Properties, Inc. (1)	  	$	219,564	  	 	$	220,595	  	 	$	250,688	  	 	$	197,339	  	 	$	217,261	  	
FFO per share - diluted (1)	  	$	1.42	  	 	$	1.43	  	 	$	1.63	  	 	$	1.28	  	 	$	1.41	  	
Dividends per common share	  	$	0.65	  	 	$	0.65	  	 	$	0.65	  	 	$	1.90	(2) 	 	$	0.65	  	
Funds available for distribution to common shareholders and common unitholders (FAD) (1) (3)	  	$	149,725	  	 	$	160,948	  	 	$	188,204	  	 	$	138,872	  	 	$	142,301	  	
Ratios:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (excluding capitalized interest) (4)	  	 	3.49	  	 	 	3.63	  	 	 	3.79	  	 	 	3.20	  	 	 	3.28	  	
Interest Coverage Ratio (including capitalized interest) (4)	  	 	3.17	  	 	 	3.28	  	 	 	3.45	  	 	 	2.95	  	 	 	3.00	  	
FFO Payout Ratio (3)	  	 	45.77	% 	 	 	45.45	% 	 	 	39.88	% 	 	 	50.78	% 	 	 	46.10	% 	
FAD Payout Ratio (3)	  	 	74.63	% 	 	 	69.42	% 	 	 	59.35	% 	 	 	80.33	% 	 	 	78.39	% 	
Selected Items (5):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Revenue	  	$	625,228	  	 	$	623,546	  	 	$	665,985	  	 	$	624,240	  	 	$	629,884	  	
Partners’ share of revenue from consolidated joint ventures	  	 	(69,391	) 	 	 	(69,609	) 	 	 	(73,667	) 	 	 	(73,697	) 	 	 	(83,117	) 	
BXP’s share of revenue from unconsolidated joint ventures	  	 	25,271	  	 	 	18,825	  	 	 	18,447	  	 	 	18,672	  	 	 	18,745	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined revenue	  	$	581,108	  	 	$	572,762	  	 	$	610,765	  	 	$	569,215	  	 	$	565,512	  	
Straight-line rent	  	$	11,107	  	 	$	(6,503	)(6) 	 	$	14,424	  	 	$	19,623	  	 	$	15,992	  	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	(707	) 	 	 	(718	)(6) 	 	 	(1,696	) 	 	 	(2,605	) 	 	 	(3,204	) 	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	3,285	  	 	 	1,787	  	 	 	1,064	  	 	 	1,131	  	 	 	(158	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined straight-line rent	  	$	13,685	  	 	$	(5,434	) 	 	$	13,792	  	 	$	18,149	  	 	$	12,630	  	
Fair value lease revenue (7)	  	$	6,547	  	 	$	8,808	  	 	$	8,186	  	 	$	7,450	  	 	$	8,838	  	
Partners’ share of fair value lease revenue from consolidated joint ventures (7)	  	 	(2,084	) 	 	 	(3,031	) 	 	 	(2,810	) 	 	 	(2,483	) 	 	 	(2,889	) 	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (7)	  	 	511	  	 	 	(1	) 	 	 	(1	) 	 	 	(1	) 	 	 	(12	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined fair value lease revenue	  	$	4,974	  	 	$	5,776	  	 	$	5,375	  	 	$	4,966	  	 	$	5,937	  	
Lease termination fees (8)	  	$	(170	) 	 	$	7,654	  	 	$	51,306	  	 	$	7,701	  	 	$	9,589	  	
Partners’ share of lease termination fees from consolidated joint ventures	  	 	421	  	 	 	(44	) 	 	 	(1,852	) 	 	 	(2,113	) 	 	 	(1,829	) 	
BXP’s share of lease termination fees from unconsolidated joint ventures	  	 	8	  	 	 	4	  	 	 	(9	) 	 	 	17	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined lease termination fees	  	$	259	  	 	$	7,614	  	 	$	49,445	  	 	$	5,605	  	 	$	7,760	  	
Fair value interest adjustment	  	$	10,378	  	 	$	11,272	  	 	$	12,321	  	 	$	13,076	  	 	$	13,204	  	
Partners’ share of fair value interest adjustment from consolidated joint ventures	  	 	(4,569	) 	 	 	(4,540	) 	 	 	(4,511	) 	 	 	(4,483	) 	 	 	(5,142	) 	
BXP’s share of fair value interest adjustment from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined fair value interest adjustment	  	$	5,809	  	 	$	6,732	  	 	$	7,810	  	 	$	8,593	  	 	$	8,062	  	
Ground rent expense (9)	  	$	3,471	  	 	$	3,469	  	 	$	3,471	  	 	$	3,463	  	 	$	3,534	  	
Losses from early extinguishments of debt	  	$	(371	) 	 	$	—  	  	 	$	—  	  	 	$	(22,040	) 	 	$	—  	  	
Capitalized interest	  	$	9,788	  	 	$	9,899	  	 	$	9,269	  	 	$	8,298	  	 	$	9,100	  	
Capitalized wages	  	$	4,155	  	 	$	4,467	  	 	$	4,344	  	 	$	4,130	  	 	$	4,111	  	
Operating margins [(rental revenue—rental expense)/rental revenue]	  	 	62.3	% 	 	 	64.0	% 	 	 	66.3	% 	 	 	64.3	% 	 	 	64.0	% 	
Income from unconsolidated joint ventures	  	$	1,464	  	 	$	2,234	  	 	$	1,791	  	 	$	2,211	  	 	$	2,647	  	
BXP’s share of funds from operations (FFO) from unconsolidated joint ventures	  	$	10,592	(10) 	 	$	6,852	  	 	$	6,287	  	 	$	6,205	  	 	$	6,455	  	
Net income attributable to noncontrolling interests in property partnerships	  	$	(17,225	) 	 	$	6,814	  	 	$	10,464	  	 	$	10,143	  	 	$	115,240	  	
FFO attributable to noncontrolling interests in property partnerships	  	$	23,682	(11) 	 	$	26,183	  	 	$	30,019	  	 	$	30,828	  	 	$	35,527	  	
Income before gains on sales of real estate	  	$	58,521	  	 	$	117,357	  	 	$	148,599	  	 	$	85,406	  	 	$	123,792	  	
 
(1)	For the Company’s definitions and related disclosures, see pages 47-48.	
(2)	For the three months ended December 31, 2015, dividends per common share includes the $1.25 per common share special dividend paid on January 28, 2016 to shareholders of record as of the close of business on December 31, 2015.	
(3)	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.	
(4)	For a quantitative reconciliation and related disclosures, see page 13.	
(5)	Partners’ share and BXP’s share of line items below are based upon percentage ownership interests in the applicable joint ventures.	
(6)	During the three months ended June 30, 2016, the Company recognized an aggregate of approximately $15.4 million of lump sum rental income amounts from three tenants that will be straight-lined through each tenant’s lease term. These amounts are in addition to the tenants’ monthly rental payments.	
(7)	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.	
(8)	For the three months ended March 31, 2016, includes approximately $45.0 million received from a tenant that terminated its lease for approximately 85,000 square feet at the Company’s 250 West 55th Street property located in New York City. For the three months ended June 30, 2016 and September 30, 2015, includes distributions received by the Company from its unsecured creditor claim against Lehman Brothers, Inc. of approximately $1.4 million and $3.6 million, respectively.	
(9)	Includes non-cash straight-line adjustments to ground rent. See page 13 for the straight-line adjustments to the ground rent expense.	
(10)	For additional detail, see page 18.	
(11)	For additional detail, see page 20.	
 
7

THIRD QUARTER 2016
 
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. 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 the non-GAAP financial measures the Company presents 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 can be found on pages 47-48.

 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Balance Sheet Items:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Above-market rents (included within Prepaid Expenses and Other Assets)	  	$	40,346	  	 	$	43,780	  	 	$	47,388	  	 	$	51,397	  	 	$	55,434	  	
Below-market rents (included within Other Liabilities)	  	$	142,595	  	 	$	152,576	  	 	$	160,504	  	 	$	172,670	  	 	$	184,154	  	
Accrued ground rent expense, net (included within Prepaid Expenses and Other Assets and Other Liabilities)	  	$	41,718	  	 	$	40,687	  	 	$	39,752	  	 	$	38,765	  	 	$	42,962	  	
Outside members’ notes payable (1)	  	$	180,000	  	 	$	180,000	  	 	$	180,000	  	 	$	180,000	  	 	$	180,000	  	
Accrued interest payable on outside members’ notes payable (included within Accrued Interest Payable) (1)	  	$	144,825	  	 	$	136,131	  	 	$	127,670	  	 	$	119,436	  	 	$	111,422	  	
Capitalization:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common Stock Price @ Quarter End	  	$	136.29	  	 	$	131.90	  	 	$	127.08	  	 	$	127.54	  	 	$	118.40	  	
Equity Value @ Quarter End	  	$	23,611,215	  	 	$	22,856,727	  	 	$	22,027,642	  	 	$	22,074,258	  	 	$	20,506,666	  	
Consolidated Debt	  	$	9,808,922	  	 	$	9,934,084	  	 	$	10,160,366	  	 	$	9,188,543	  	 	$	9,879,187	  	
BXP’s share of Unconsolidated Joint Venture Debt (2)	  	 	350,225	  	 	 	350,831	  	 	 	351,394	  	 	 	351,926	  	 	 	351,340	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Combined Debt (3)(4)	  	 	10,159,147	  	 	 	10,284,915	  	 	 	10,511,760	  	 	 	9,540,469	  	 	 	10,230,527	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of Consolidated Debt (5)	  	 	1,150,462	  	 	 	1,156,399	  	 	 	1,162,292	  	 	 	1,168,142	  	 	 	1,173,988	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s Share of Combined Debt (3)(4)	  	$	9,008,685	  	 	$	9,128,516	  	 	$	9,349,468	  	 	$	8,372,327	  	 	$	9,056,539	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Market Capitalization	  	$	33,420,137	  	 	$	32,790,811	  	 	$	32,188,008	  	 	$	31,262,801	  	 	$	30,385,853	  	
Consolidated Debt/Consolidated Market Capitalization (3)	  	 	29.35	% 	 	 	30.30	% 	 	 	31.57	% 	 	 	29.39	% 	 	 	32.51	% 	
BXP’s Share of Combined Market Capitalization (3)(4)	  	$	32,619,900	(6) 	 	$	31,985,243	  	 	$	31,377,110	  	 	$	30,446,585	  	 	$	29,563,205	  	
BXP’s Share of Combined Debt/BXP’s Share of Combined Market Capitalization (3)(4)	  	 	27.62	%(6) 	 	 	28.54	% 	 	 	29.80	% 	 	 	27.50	% 	 	 	30.63	% 	
 
(1)	Amount is allocated to the Company’s 767 Fifth Avenue (The GM Building) partners through noncontrolling interests in property partnerships.	
(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)	The Company notes that the ownership percentages used in calculating “Combined” amounts and “BXP’s Share” of any Combined amounts may not completely and accurately depict the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For additional detail, see page 47.	
  	Management also uses these measures to evaluate regional decisions about resource allocations.	
(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

THIRD QUARTER 2016
 
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)

 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
ASSETS	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate	  	$	18,704,856	  	 	$	18,690,403	  	 	$	18,424,542	  	 	$	18,465,405	  	 	$	18,412,086	  	
Construction in progress (1)	  	 	954,013	  	 	 	865,359	  	 	 	857,578	  	 	 	763,935	  	 	 	725,601	  	
Land held for future development (2)	  	 	243,887	  	 	 	241,106	  	 	 	256,952	  	 	 	252,195	  	 	 	264,598	  	
Less accumulated depreciation	  	 	(4,113,553	) 	 	 	(4,056,716	) 	 	 	(3,969,648	) 	 	 	(3,925,894	) 	 	 	(3,833,277	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total real estate	  	 	15,789,203	  	 	 	15,740,152	  	 	 	15,569,424	  	 	 	15,555,641	  	 	 	15,569,008	  	
Cash and cash equivalents	  	 	419,323	  	 	 	1,180,044	  	 	 	1,605,678	  	 	 	723,718	  	 	 	1,387,007	  	
Cash held in escrows	  	 	63,980	  	 	 	65,654	  	 	 	71,349	  	 	 	73,790	  	 	 	90,379	  	
Investments in securities	  	 	23,022	  	 	 	21,775	  	 	 	21,077	  	 	 	20,380	  	 	 	19,645	  	
Tenant and other receivables, net	  	 	76,258	  	 	 	84,861	  	 	 	73,759	  	 	 	97,865	  	 	 	66,446	  	
Accrued rental income, net	  	 	785,569	  	 	 	776,816	  	 	 	767,864	  	 	 	754,883	  	 	 	737,145	  	
Deferred charges, net (3)	  	 	680,192	  	 	 	697,823	  	 	 	693,976	  	 	 	704,867	  	 	 	719,019	  	
Prepaid expenses and other assets	  	 	176,693	  	 	 	144,222	  	 	 	136,799	  	 	 	185,118	  	 	 	143,476	  	
Investments in unconsolidated joint ventures	  	 	775,659	  	 	 	252,618	  	 	 	235,904	  	 	 	235,224	  	 	 	217,529	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	18,789,899	  	 	$	18,963,965	  	 	$	19,175,830	  	 	$	18,351,486	  	 	$	18,949,654	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage notes payable, net (3)	  	$	2,077,707	  	 	$	3,189,013	  	 	$	3,416,622	  	 	$	3,435,242	  	 	$	4,127,007	  	
Unsecured senior notes, net (3)	  	 	7,243,767	  	 	 	6,257,274	  	 	 	6,255,602	  	 	 	5,264,819	  	 	 	5,263,363	  	
Unsecured line of credit	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Mezzanine notes payable	  	 	307,448	  	 	 	307,797	  	 	 	308,142	  	 	 	308,482	  	 	 	308,817	  	
Outside members’ notes payable	  	 	180,000	  	 	 	180,000	  	 	 	180,000	  	 	 	180,000	  	 	 	180,000	  	
Accounts payable and accrued expenses	  	 	312,979	  	 	 	287,464	  	 	 	252,727	  	 	 	274,709	  	 	 	245,200	  	
Dividends and distributions payable	  	 	113,038	  	 	 	113,071	  	 	 	113,079	  	 	 	327,320	  	 	 	112,912	  	
Accrued interest payable	  	 	234,628	  	 	 	222,175	  	 	 	221,578	  	 	 	190,386	  	 	 	200,916	  	
Other liabilities	  	 	461,079	  	 	 	508,952	  	 	 	498,290	  	 	 	483,601	  	 	 	448,680	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	10,930,646	  	 	 	11,065,746	  	 	 	11,246,040	  	 	 	10,464,559	  	 	 	10,886,895	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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, 153,773,012, 153,674,930, 153,604,966, 153,579,966 and 153,574,600 outstanding, respectively	  	 	1,538	  	 	 	1,537	  	 	 	1,536	  	 	 	1,536	  	 	 	1,536	  	
Additional paid-in capital	  	 	6,326,580	  	 	 	6,316,191	  	 	 	6,306,723	  	 	 	6,305,687	  	 	 	6,300,780	  	
Dividends in excess of earnings	  	 	(725,522	) 	 	 	(702,361	) 	 	 	(699,048	) 	 	 	(780,952	) 	 	 	(627,054	) 	
Treasury common stock, at cost	  	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	 	 	(2,722	) 	
Accumulated other comprehensive loss	  	 	(73,943	) 	 	 	(79,748	) 	 	 	(56,706	) 	 	 	(14,114	) 	 	 	(20,625	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Boston Properties, Inc.	  	 	5,725,931	  	 	 	5,732,897	  	 	 	5,749,783	  	 	 	5,709,435	  	 	 	5,851,915	  	
Noncontrolling interests:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Common units of the Operating Partnership	  	 	608,280	  	 	 	612,385	  	 	 	616,095	  	 	 	603,092	  	 	 	620,036	  	
Property partnerships	  	 	1,525,042	  	 	 	1,552,937	  	 	 	1,563,912	  	 	 	1,574,400	  	 	 	1,590,808	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	7,859,253	  	 	 	7,898,219	  	 	 	7,929,790	  	 	 	7,886,927	  	 	 	8,062,759	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	18,789,899	  	 	$	18,963,965	  	 	$	19,175,830	  	 	$	18,351,486	  	 	$	18,949,654	  	

(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 January 1, 2016, the Company adopted Accounting Standards Update 2015-03, “Simplifying the Presentation of Debt Issuance Costs,” which requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company retrospectively adopted the guidance resulting in the presentation of deferred financing costs, net (previously included within Deferred Charges, Net) as a reduction to Mortgage Notes Payable, Net and Unsecured Senior Notes, Net for all periods presented. The recognition and measurement guidance for debt issuance costs was not affected.	
 
9

THIRD QUARTER 2016
 
CONSOLIDATED INCOME STATEMENTS
(unaudited and in thousands, except for per share amounts)

 	  	Three Months Ended	 	
 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Revenue	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rent	  	$	489,312	  	 	$	493,386	  	 	$	536,128	  	 	$	493,141	  	 	$	494,300	  	
Recoveries from tenants	  	 	92,560	  	 	 	85,706	  	 	 	89,586	  	 	 	88,576	  	 	 	91,544	  	
Parking and other	  	 	24,638	  	 	 	26,113	  	 	 	24,825	  	 	 	25,132	  	 	 	25,509	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total rental revenue	  	 	606,510	  	 	 	605,205	  	 	 	650,539	  	 	 	606,849	  	 	 	611,353	  	
Hotel revenue	  	 	12,354	  	 	 	12,808	  	 	 	8,757	  	 	 	10,939	  	 	 	12,619	  	
Development and management services	  	 	6,364	  	 	 	5,533	  	 	 	6,689	  	 	 	6,452	  	 	 	5,912	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	625,228	  	 	 	623,546	  	 	 	665,985	  	 	 	624,240	  	 	 	629,884	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	117,728	  	 	 	113,212	  	 	 	114,467	  	 	 	112,846	  	 	 	113,962	  	
Real estate taxes	  	 	109,480	  	 	 	104,726	  	 	 	104,705	  	 	 	103,796	  	 	 	105,834	  	
Demolition costs	  	 	1,352	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Hotel operating	  	 	8,118	  	 	 	7,978	  	 	 	7,634	  	 	 	7,888	  	 	 	8,125	  	
General and administrative (1)	  	 	25,165	  	 	 	25,418	  	 	 	29,353	  	 	 	24,300	  	 	 	20,944	  	
Transaction costs	  	 	249	  	 	 	913	  	 	 	25	  	 	 	470	  	 	 	254	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Depreciation and amortization	  	 	203,748	(2) 	 	 	153,175	  	 	 	159,448	  	 	 	164,460	  	 	 	153,015	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	467,623	  	 	 	405,422	  	 	 	415,632	  	 	 	413,760	  	 	 	402,134	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	157,605	  	 	 	218,124	  	 	 	250,353	  	 	 	210,480	  	 	 	227,750	  	
Other income (expense)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from unconsolidated joint ventures	  	 	1,464	  	 	 	2,234	  	 	 	1,791	  	 	 	2,211	  	 	 	2,647	  	
Interest and other income	  	 	3,628	  	 	 	1,524	  	 	 	1,505	  	 	 	440	  	 	 	3,637	  	
Gains (losses) from investments in securities (1)	  	 	976	  	 	 	478	  	 	 	259	  	 	 	493	  	 	 	(1,515	) 	
Interest expense (3)	  	 	(104,641	) 	 	 	(105,003	) 	 	 	(105,309	) 	 	 	(106,178	) 	 	 	(108,727	) 	
Losses from early extinguishments of debt	  	 	(371	) 	 	 	—  	  	 	 	—  	  	 	 	(22,040	) 	 	 	—  	  	
Losses from interest rate contracts	  	 	(140	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	117,357	  	 	 	148,599	  	 	 	85,406	  	 	 	123,792	  	
Gains on sales of real estate (4)	  	 	12,983	  	 	 	—  	  	 	 	67,623	  	 	 	81,332	  	 	 	199,479	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	71,504	  	 	 	117,357	  	 	 	216,222	  	 	 	166,738	  	 	 	323,271	  	
Net income attributable to noncontrolling interests	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest in property partnerships	  	 	17,225	  	 	 	(6,814	) 	 	 	(10,464	) 	 	 	(10,143	) 	 	 	(115,240	)(5) 	
Noncontrolling interest - common units of the Operating Partnership (6)	  	 	(9,387	) 	 	 	(11,357	) 	 	 	(21,393	) 	 	 	(16,098	) 	 	 	(21,302	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	79,342	  	 	 	99,186	  	 	 	184,365	  	 	 	140,497	  	 	 	186,729	  	
Preferred dividends	  	 	(2,589	) 	 	 	(2,589	) 	 	 	(2,618	) 	 	 	(2,646	) 	 	 	(2,647	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	96,597	  	 	$	181,747	  	 	$	137,851	  	 	$	184,082	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
INCOME PER SHARE OF COMMON STOCK (EPS)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. per share - basic	  	$	0.50	  	 	$	0.63	  	 	$	1.18	  	 	$	0.90	  	 	$	1.20	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. per share - diluted	  	$	0.50	  	 	$	0.63	  	 	$	1.18	  	 	$	0.90	  	 	$	1.20	  	

(1)	General and administrative expense includes $(976), $(478), $(259), $(493) and $1,515 and gains (losses) from investments in securities include $976, $478, $259, $493 and $(1,515) for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively, related to the Company’s deferred compensation plan.	
(2)	For the three months ended September 30, 2016, includes approximately $50.8 million (including approximately $3.2 million related to an allocation of corporate real estate step-up assets) of accelerated depreciation expense related to the redevelopment of the Company’s 601 Lexington Avenue property.	
(3)	For the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, interest expense includes $8,694, $8,461, $8,234, $8,014 and $7,800, 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.	
(4)	See page 44 for additional information.	
(5)	For the three months ended September 30, 2015, noncontrolling interest in property partnerships includes approximately $101.1 million consisting of the allocation of the gain on sale of real estate to the outside partners in the consolidated entity that sold 505 9th Street, N.W. located in Washington, DC.	
(6)	Equals noncontrolling interest—common units of the Operating Partnership’s share of 10.28%, 10.33%, 10.32%, 10.26% and 10.26% of income before net income attributable to noncontrolling interests in Operating Partnership after deduction for preferred distributions for the three months ended September 30, 2016, June 30, 2016, March 31, 2016, December 31, 2015 and September 30, 2015, respectively.	
 
10

THIRD QUARTER 2016
 
FUNDS FROM OPERATIONS (FFO)
(unaudited and in thousands, except for per share amounts)

 	  	Three Months Ended	 	
 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	96,597	  	 	$	181,747	  	 	$	137,851	  	 	$	184,082	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,589	  	 	 	2,589	  	 	 	2,618	  	 	 	2,646	  	 	 	2,647	  	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	11,357	  	 	 	21,393	  	 	 	16,098	  	 	 	21,302	  	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	6,814	  	 	 	10,464	  	 	 	10,143	  	 	 	115,240	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	12,983	  	 	 	—  	  	 	 	67,623	  	 	 	81,332	  	 	 	199,479	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	117,357	  	 	 	148,599	  	 	 	85,406	  	 	 	123,792	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	203,748	  	 	 	153,175	  	 	 	159,448	  	 	 	164,460	  	 	 	153,015	  	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(40,907	) 	 	 	(19,369	) 	 	 	(19,555	) 	 	 	(20,685	) 	 	 	(21,405	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,128	  	 	 	4,618	  	 	 	4,496	  	 	 	3,994	  	 	 	3,808	  	
Corporate-related depreciation and amortization	  	 	(393	) 	 	 	(362	) 	 	 	(364	) 	 	 	(486	) 	 	 	(334	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	6,814	  	 	 	10,464	  	 	 	10,143	  	 	 	14,122	(1) 	
Preferred dividends	  	 	2,589	  	 	 	2,589	  	 	 	2,618	  	 	 	2,646	  	 	 	2,647	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (“Basic FFO”)	  	 	244,733	  	 	 	246,016	  	 	 	279,542	  	 	 	219,900	  	 	 	242,107	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of FFO	  	 	25,169	  	 	 	25,421	  	 	 	28,854	  	 	 	22,561	  	 	 	24,846	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO attributable to Boston Properties, Inc. common shareholders	  	$	219,564	  	 	$	220,595	  	 	$	250,688	  	 	$	197,339	  	 	$	217,261	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of FFO - basic	  	 	89.72	% 	 	 	89.67	% 	 	 	89.68	% 	 	 	89.74	% 	 	 	89.74	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share - basic	  	$	1.43	  	 	$	1.44	  	 	$	1.63	  	 	$	1.28	  	 	$	1.41	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - basic	  	 	153,754	  	 	 	153,662	  	 	 	153,626	  	 	 	153,602	  	 	 	153,595	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share - diluted	  	$	1.42	  	 	$	1.43	  	 	$	1.63	  	 	$	1.28	  	 	$	1.41	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - diluted	  	 	154,136	  	 	 	153,860	  	 	 	153,917	  	 	 	153,897	  	 	 	153,786	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation to Diluted FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic FFO	  	$	244,733	  	 	$	246,016	  	 	$	279,542	  	 	$	219,900	  	 	$	242,107	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of dilutive securities - stock-based compensation	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted FFO	  	 	244,733	  	 	 	246,016	  	 	 	279,542	  	 	 	219,900	  	 	 	242,107	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO	  	 	25,113	  	 	 	25,391	  	 	 	28,805	  	 	 	22,522	  	 	 	24,818	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s share of diluted FFO	  	$	219,620	  	 	$	220,625	  	 	$	250,737	  	 	$	197,378	  	 	$	217,289	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Shares/Units for Diluted FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares/units for Basic FFO	  	 	171,379	  	 	 	171,370	  	 	 	171,309	  	 	 	171,162	  	 	 	171,160	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Effect of dilutive securities - stock-based compensation (shares/units)	  	 	382	  	 	 	198	  	 	 	291	  	 	 	295	  	 	 	191	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Shares/units for Diluted FFO	  	 	171,761	  	 	 	171,568	  	 	 	171,600	  	 	 	171,457	  	 	 	171,351	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO (shares/units)	  	 	17,625	  	 	 	17,708	  	 	 	17,683	  	 	 	17,560	  	 	 	17,565	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s share of shares/units for diluted FFO	  	 	154,136	  	 	 	153,860	  	 	 	153,917	  	 	 	153,897	  	 	 	153,786	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of FFO - diluted	  	 	89.74	% 	 	 	89.68	% 	 	 	89.70	% 	 	 	89.76	% 	 	 	89.75	% 	

(1)	For the three months ended September 30, 2015, excludes the noncontrolling interests in property partnerships’ share of a gain on sale of real estate totaling approximately $101.1 million.	
 
11

THIRD QUARTER 2016
 
FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
(in thousands, except for ratio amounts)

 	  	Three Months Ended	 	
 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	96,597	  	 	$	181,747	  	 	$	137,851	  	 	$	184,082	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,589	  	 	 	2,589	  	 	 	2,618	  	 	 	2,646	  	 	 	2,647	  	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	11,357	  	 	 	21,393	  	 	 	16,098	  	 	 	21,302	  	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	6,814	  	 	 	10,464	  	 	 	10,143	  	 	 	115,240	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	12,983	  	 	 	—  	  	 	 	67,623	  	 	 	81,332	  	 	 	199,479	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	117,357	  	 	 	148,599	  	 	 	85,406	  	 	 	123,792	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	203,748	  	 	 	153,175	  	 	 	159,448	  	 	 	164,460	  	 	 	153,015	  	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(40,907	) 	 	 	(19,369	) 	 	 	(19,555	) 	 	 	(20,685	) 	 	 	(21,405	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,128	  	 	 	4,618	  	 	 	4,496	  	 	 	3,994	  	 	 	3,808	  	
Corporate-related depreciation and amortization	  	 	(393	) 	 	 	(362	) 	 	 	(364	) 	 	 	(486	) 	 	 	(334	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	6,814	  	 	 	10,464	  	 	 	10,143	  	 	 	14,122	(1) 	
Preferred dividends	  	 	2,589	  	 	 	2,589	  	 	 	2,618	  	 	 	2,646	  	 	 	2,647	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic FFO	  	 	244,733	  	 	 	246,016	  	 	 	279,542	  	 	 	219,900	  	 	 	242,107	  	
Straight-line rent	  	 	(11,107	) 	 	 	6,503	(2) 	 	 	(14,424	) 	 	 	(19,623	) 	 	 	(15,992	) 	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	707	  	 	 	718	(2) 	 	 	1,696	  	 	 	2,605	  	 	 	3,204	  	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	(3,285	) 	 	 	(1,787	) 	 	 	(1,064	) 	 	 	(1,131	) 	 	 	158	  	
Lease transaction costs that qualify as rent inducements (3)	  	 	861	  	 	 	2,200	  	 	 	5,305	  	 	 	1,939	  	 	 	1,911	  	
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (3)	  	 	—  	  	 	 	—  	  	 	 	(17	) 	 	 	(18	) 	 	 	(412	) 	
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (3)	  	 	15	  	 	 	—  	  	 	 	—  	  	 	 	24	  	 	 	147	  	
Fair value lease revenue (4)	  	 	(6,547	) 	 	 	(8,808	) 	 	 	(8,186	) 	 	 	(7,450	) 	 	 	(8,838	) 	
Partners’ share of fair value lease revenue from consolidated joint ventures (4)	  	 	2,084	  	 	 	3,031	  	 	 	2,810	  	 	 	2,483	  	 	 	2,889	  	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (4)	  	 	(511	) 	 	 	1	  	 	 	1	  	 	 	1	  	 	 	12	  	
Non-cash losses (gains) from early extinguishments of debt	  	 	371	  	 	 	—  	  	 	 	—  	  	 	 	(3,604	) 	 	 	—  	  	
Non-cash termination income adjustment (fair value lease amounts)	  	 	—  	  	 	 	141	  	 	 	29	  	 	 	3	  	 	 	(1,389	) 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures	  	 	—  	  	 	 	(41	) 	 	 	—  	  	 	 	—  	  	 	 	555	  	
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Straight-line ground rent expense adjustment (5)	  	 	1,031	  	 	 	935	  	 	 	987	  	 	 	(3,983	) 	 	 	891	  	
Stock-based compensation	  	 	7,643	  	 	 	7,578	  	 	 	10,069	  	 	 	6,358	  	 	 	6,345	  	
Non-real estate depreciation	  	 	393	  	 	 	362	  	 	 	364	  	 	 	486	  	 	 	334	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Fair value interest adjustment	  	 	(10,378	) 	 	 	(11,272	) 	 	 	(12,321	) 	 	 	(13,076	) 	 	 	(13,204	) 	
Partners’ share of fair value interest adjustment from consolidated joint ventures	  	 	4,569	  	 	 	4,540	  	 	 	4,511	  	 	 	4,483	  	 	 	5,142	  	
BXP’s share of fair value interest adjustment from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
2nd generation tenant improvements and leasing commissions	  	 	(69,742	) 	 	 	(74,719	) 	 	 	(58,100	) 	 	 	(34,206	) 	 	 	(53,268	) 	
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated joint ventures	  	 	805	  	 	 	1,247	  	 	 	2,525	  	 	 	2,075	  	 	 	742	  	
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated joint ventures	  	 	(18	) 	 	 	(8,616	) 	 	 	(4,769	) 	 	 	(207	) 	 	 	(12,279	) 	
Unearned portion of capitalized fees	  	 	250	  	 	 	2,697	  	 	 	1,191	  	 	 	451	  	 	 	616	  	
Maintenance capital expenditures (6)	  	 	(11,889	) 	 	 	(9,654	) 	 	 	(21,961	) 	 	 	(18,963	) 	 	 	(17,148	) 	
Partners’ share of maintenance capital expenditures from consolidated joint ventures (6)	  	 	377	  	 	 	422	  	 	 	573	  	 	 	2,134	  	 	 	886	  	
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (6)	  	 	(283	) 	 	 	(112	) 	 	 	(197	) 	 	 	(578	) 	 	 	(672	) 	
Hotel improvements, equipment upgrades and replacements	  	 	(2,137	) 	 	 	(434	) 	 	 	(360	) 	 	 	(1,231	) 	 	 	(436	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds available for distribution to common shareholders and common unitholders (FAD) (A)	  	$	149,725	  	 	$	160,948	  	 	$	188,204	  	 	$	138,872	  	 	$	142,301	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Distributions to common shareholders and unitholders (excluding any special distributions) (B)	  	$	111,739	  	 	$	111,737	  	 	$	111,708	  	 	$	111,556	  	 	$	111,552	  	
FAD Payout Ratio (B÷A)	  	 	74.63	% 	 	 	69.42	% 	 	 	59.35	% 	 	 	80.33	% 	 	 	78.39	% 	

(1)	For the three months ended September 30, 2015, excludes the noncontrolling interests in property partnerships’ share of a gain on sale of real estate totaling approximately $101.1 million.	
(2)	During the three months ended June 30, 2016, the Company recognized an aggregate of approximately $15.4 million of lump sum rental income amounts from three tenants that will be straight-lined through each tenant’s lease term. These amounts are in addition to the tenants’ monthly rental payments.	
(3)	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.	
(4)	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.	
(5)	For the three months ended September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 200 Clarendon Street property’s adjacent 100 Clarendon Street garage and Back Bay Station concourse level. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur over the next three years 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. For additional information, see page 7.	
(6)	Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures – see page 25 for additional detail.	
 
12

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

 	  	Three Months Ended	 	
 	  	30-Sep-16	 	 	30-Jun-16	 	 	31-Mar-16	 	 	31-Dec-15	 	 	30-Sep-15	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	96,597	  	 	$	181,747	  	 	$	137,851	  	 	$	184,082	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,589	  	 	 	2,589	  	 	 	2,618	  	 	 	2,646	  	 	 	2,647	  	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	11,357	  	 	 	21,393	  	 	 	16,098	  	 	 	21,302	  	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	6,814	  	 	 	10,464	  	 	 	10,143	  	 	 	115,240	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	12,983	  	 	 	—  	  	 	 	67,623	  	 	 	81,332	  	 	 	199,479	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	117,357	  	 	 	148,599	  	 	 	85,406	  	 	 	123,792	  	
Noncontrolling interests in property partnerships	  	 	17,225	  	 	 	(6,814	) 	 	 	(10,464	) 	 	 	(10,143	) 	 	 	(14,122	)(1) 	
Interest expense	  	 	104,641	  	 	 	105,003	  	 	 	105,309	  	 	 	106,178	  	 	 	108,727	  	
Partners’ share of interest expense from consolidated joint ventures	  	 	(17,460	) 	 	 	(17,177	) 	 	 	(16,988	) 	 	 	(16,928	) 	 	 	(18,339	) 	
BXP’s share of interest expense from unconsolidated joint ventures	  	 	4,025	  	 	 	4,010	  	 	 	4,015	  	 	 	3,908	  	 	 	3,830	  	
Depreciation and amortization expense	  	 	203,748	  	 	 	153,175	  	 	 	159,448	  	 	 	164,460	  	 	 	153,015	  	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(40,907	) 	 	 	(19,369	) 	 	 	(19,555	) 	 	 	(20,685	) 	 	 	(21,405	) 	
BXP’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,128	  	 	 	4,618	  	 	 	4,496	  	 	 	3,994	  	 	 	3,808	  	
Losses from early extinguishments of debt	  	 	371	  	 	 	—  	  	 	 	—  	  	 	 	22,040	  	 	 	—  	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Non-cash termination income adjustment (fair value lease amounts)	  	 	—  	  	 	 	141	  	 	 	29	  	 	 	3	  	 	 	(1,389	) 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures	  	 	—  	  	 	 	(41	) 	 	 	—  	  	 	 	—  	  	 	 	555	  	
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Stock-based compensation	  	 	7,643	  	 	 	7,578	  	 	 	10,069	  	 	 	6,358	  	 	 	6,345	  	
Straight-line ground rent expense adjustment (2)	  	 	1,031	  	 	 	935	  	 	 	987	  	 	 	(3,983	) 	 	 	891	  	
Straight-line rent	  	 	(11,107	) 	 	 	6,503	(3) 	 	 	(14,424	) 	 	 	(19,623	) 	 	 	(15,992	) 	
Partners’ share of straight-line rent from consolidated joint ventures	  	 	707	  	 	 	718	(3) 	 	 	1,696	  	 	 	2,605	  	 	 	3,204	  	
BXP’s share of straight-line rent from unconsolidated joint ventures	  	 	(3,285	) 	 	 	(1,787	) 	 	 	(1,064	) 	 	 	(1,131	) 	 	 	158	  	
Lease transaction costs that qualify as rent inducements (4)	  	 	861	  	 	 	2,200	  	 	 	5,305	  	 	 	1,939	  	 	 	1,911	  	
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (4)	  	 	—  	  	 	 	—  	  	 	 	(17	) 	 	 	(18	) 	 	 	(412	) 	
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (4)	  	 	15	  	 	 	—  	  	 	 	—  	  	 	 	24	  	 	 	147	  	
Fair value lease revenue (5)	  	 	(6,547	) 	 	 	(8,808	) 	 	 	(8,186	) 	 	 	(7,450	) 	 	 	(8,838	) 	
Partners’ share of fair value lease revenue from consolidated joint ventures (5)	  	 	2,084	  	 	 	3,031	  	 	 	2,810	  	 	 	2,483	  	 	 	2,889	  	
BXP’s share of fair value lease revenue from unconsolidated joint ventures (5)	  	 	(511	) 	 	 	1	  	 	 	1	  	 	 	1	  	 	 	12	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal (A)	  	$	331,966	  	 	$	351,274	  	 	$	372,066	  	 	$	319,438	  	 	$	328,787	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Divided by:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest expense	  	$	104,641	  	 	$	105,003	  	 	$	105,309	  	 	$	106,178	  	 	$	108,727	  	
Partners’ share of interest expense from consolidated joint ventures	  	 	(17,460	) 	 	 	(17,177	) 	 	 	(16,988	) 	 	 	(16,928	) 	 	 	(18,339	) 	
BXP’s share of interest expense from unconsolidated joint ventures	  	 	4,025	  	 	 	4,010	  	 	 	4,015	  	 	 	3,908	  	 	 	3,830	  	
Fair value interest adjustment	  	 	10,378	  	 	 	11,272	  	 	 	12,321	  	 	 	13,076	  	 	 	13,204	  	
Partners’ share of fair value interest adjustment from consolidated joint ventures	  	 	(4,569	) 	 	 	(4,540	) 	 	 	(4,511	) 	 	 	(4,483	) 	 	 	(5,142	) 	
BXP’s share of fair value interest adjustment from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Amortization of financing costs	  	 	(1,889	) 	 	 	(1,704	) 	 	 	(1,829	) 	 	 	(1,921	) 	 	 	(1,935	) 	
Partners’ share of amortization of financing costs from consolidated joint ventures	  	 	38	  	 	 	38	  	 	 	38	  	 	 	39	  	 	 	64	  	
BXP’s share of amortization of financing costs from unconsolidated joint ventures	  	 	(113	) 	 	 	(112	) 	 	 	(120	) 	 	 	(113	) 	 	 	(102	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted interest expense excluding capitalized interest (B)	  	 	95,051	  	 	 	96,790	  	 	 	98,235	  	 	 	99,756	  	 	 	100,307	  	
Capitalized interest	  	 	9,788	  	 	 	10,222	  	 	 	9,525	  	 	 	8,380	  	 	 	9,223	  	
Partners’ share of capitalized interest from consolidated joint ventures	  	 	(21	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
BXP’s share of capitalized interest from unconsolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	50	  	 	 	123	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted interest expense including capitalized interest (C)	  	$	104,818	  	 	$	107,012	  	 	$	107,760	  	 	$	108,186	  	 	$	109,653	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (excluding capitalized interest) (A ÷ B) (6)	  	 	3.49	  	 	 	3.63	  	 	 	3.79	  	 	 	3.20	  	 	 	3.28	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Coverage Ratio (including capitalized interest) (A ÷ C) (6)	  	 	3.17	  	 	 	3.28	  	 	 	3.45	  	 	 	2.95	  	 	 	3.00	  	

(1)	For the three months ended September 30, 2015, excludes the noncontrolling interests in property partnerships’ share of a gain on sale of real estate totaling approximately $101.1 million.	
(2)	For the three months ended September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, 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 Station concourse level, which are adjacent to the the Company’s 200 Clarendon Street property. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur over the next three years 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. For additional information, see page 7.	
(3)	During the three months ended June 30, 2016, the Company recognized an aggregate of approximately $15.4 million of lump sum rental income amounts from three tenants that will be straight-lined through each tenant's lease term. These amounts are in addition to the tenants’ monthly rental payments.	
(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.	
(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)	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 worsening. The ratios may also be used to compare the ability of different companies to meet their interest expense obligations, 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.	
 
13

THIRD QUARTER 2016
 
CAPITAL STRUCTURE
(in thousands, except percentages)
Consolidated Debt

 	 	 	 	 	
 	  	Aggregate Principal	 	
 	  	September 30, 2016	 	
Mortgage Notes Payable	  	$	2,035,195	  	
Mezzanine Notes Payable	  	 	306,000	  	
Unsecured Line of Credit	  	 	—  	  	
Unsecured Senior Notes, at face value	  	 	7,300,000	  	
Outside Members’ Notes Payable	  	 	180,000	  	
 	  	 	 	 	
Subtotal	  	 	9,821,195	  	
Fair Value Interest Adjustment on Mortgage Notes Payable	  	 	44,970	  	
Fair Value Interest Adjustment on Mezzanine Notes Payable	  	 	1,448	  	
Discount on Unsecured Senior Notes	  	 	(19,429	) 	
Deferred Financing Costs, Net	  	 	(39,262	) 	
 	  	 	 	 	
Consolidated Debt	  	$	9,808,922	  	
 	  	 	 	 	
Boston Properties Limited Partnership Unsecured Senior Notes (1) 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Settlement Date	  	Maturity Date	 	  	Principal	 	  	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) 	 	 	2.750	% 	 	 	99.271	% 	 	$	7,242	  	  	$	8,093	  	  	$	984,665	  	
1/20/2016	  	 	2/1/2026	  	  	 	1,000,000	  	  	 	3.766	% 	 	 	3.650	% 	 	 	99.708	% 	 	 	2,756	  	  	 	7,598	  	  	 	989,646	  	
6/27/2013	  	 	2/1/2024	  	  	 	700,000	  	  	 	3.916	% 	 	 	3.800	% 	 	 	99.694	% 	 	 	1,553	  	  	 	4,124	  	  	 	694,323	  	
4/11/2013	  	 	9/1/2023	  	  	 	500,000	  	  	 	3.279	% 	 	 	3.125	% 	 	 	99.379	% 	 	 	2,184	  	  	 	2,781	  	  	 	495,035	  	
6/11/2012	  	 	2/1/2023	  	  	 	1,000,000	  	  	 	3.954	% 	 	 	3.850	% 	 	 	99.779	% 	 	 	1,410	  	  	 	4,951	  	  	 	993,639	  	
11/10/2011	  	 	11/15/2018	  	  	 	850,000	  	  	 	3.853	% 	 	 	3.700	% 	 	 	99.767	% 	 	 	652	  	  	 	2,100	  	  	 	847,248	  	
11/18/2010	  	 	5/15/2021	  	  	 	850,000	  	  	 	4.289	% 	 	 	4.125	% 	 	 	99.260	% 	 	 	3,104	  	  	 	3,116	  	  	 	843,780	  	
4/19/2010	  	 	11/15/2020	  	  	 	700,000	  	  	 	5.708	% 	 	 	5.625	% 	 	 	99.891	% 	 	 	348	  	  	 	2,316	  	  	 	697,336	  	
10/9/2009	  	 	10/15/2019	  	  	 	700,000	  	  	 	5.967	% 	 	 	5.875	% 	 	 	99.931	% 	 	 	180	  	  	 	1,725	  	  	 	698,095	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	 	 	  	$	7,300,000	  	  	 	 	 	 	 	 	 	 	 	 	 	 	$	19,429	  	  	$	36,804	  	  	$	7,243,767	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Equity

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Shares/Units	 	  	 	 	 	 	 	
 	  	Outstanding	 	  	Common Stock	 	 	Equivalent	 	
 	  	as of 9/30/2016	 	  	Equivalents	 	 	Value (3)	 	
Common Stock	  	 	153,773	  	  	 	153,773	(4) 	 	$	20,957,722	  	
Common Operating Partnership Units	  	 	18,002	  	  	 	18,002	(5) 	 	 	2,453,493	  	
5.25% Series B Cumulative Redeemable Preferred Stock	  	 	80	  	  	 	—  	  	 	 	200,000	(6) 	
 	  	 	 	 	  	 	 	 	 	 	 	 	
Total Equity	  	 	 	 	  	 	171,775	  	 	$	23,611,215	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	
Consolidated Debt	  	 	 	 	  	 	 	 	 	$	9,808,922	  	
Add:	  	 	 	 	  	 	 	 	 	 	 	 	
BXP’s share of unconsolidated joint venture debt (7)	  	 	 	 	  	 	 	 	 	 	350,225	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	
Combined Debt (8)	  	 	 	 	  	 	 	 	 	 	10,159,147	  	
Less:	  	 	 	 	  	 	 	 	 	 	 	 	
Partners’ share of consolidated debt (9)	  	 	 	 	  	 	 	 	 	 	1,150,462	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined Debt (8)	  	 	 	 	  	 	 	 	 	$	9,008,685	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	
Consolidated Market Capitalization	  	 	 	 	  	 	 	 	 	$	33,420,137	  	
 	  	 	 	 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined Market Capitalization (8)	  	 	 	 	  	 	 	 	 	$	32,619,900	  	

(1)	All unsecured senior notes are rated A- (stable), BBB+ (stable) and Baa2 (positive) by S&P, Fitch and Moody’s, respectively.	
(2)	Includes the impact of the cash settlement of certain forward-starting interest rate swap contracts that fixed the 10-year swap rate at a weighted-average rate of approximately 2.423% per annum on notional amounts aggregating $550.0 million.	
(3)	Values based on September 30, 2016 closing price of $136.29 per share of common stock, except the shares of Series B Cumulative Redeemable Preferred Stock have been valued at the liquidation preference of $2,500.00 per share (see Note 6 below).	
(4)	Includes 59,777 shares of restricted stock.	
(5)	Includes 905,494 long-term incentive plan units (including 166,629 Outperformance Plan Units and 93,928 2013 MYLTIP Units), but excludes an aggregate of 1,314,993 2014, 2015 and 2016 MYLTIP Units because the performance periods for these MYLTIP Units have not ended and therefore none of such units have been earned.	
(6)	On or after March 27, 2018, the Company, at its option, may redeem the Series B Preferred Stock for a cash redemption price of $2,500.00 per share ($25.00 per depositary share), plus all accrued and unpaid dividends. The Series B Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into or exchangeable for any other security of the Company or any of its affiliates.	
(7)	Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 17.	
(8)	For the Company’s definitions, see pages 47-48.	
(9)	Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 19.	
 
14

THIRD QUARTER 2016
 
DEBT ANALYSIS (1)
as of September 30, 2016
(dollars in thousands)
Debt Maturities and Principal Payments

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	2016	 	 	2017	 	 	2018	 	 	2019	 	 	2020	 	 	Thereafter	 	 	Total	 	
Floating Rate Debt:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
Unsecured Line of Credit	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Floating Rate Debt	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Fixed Rate Debt:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
767 Fifth Avenue (The GM Building) (60% ownership)	  	$	—  	  	 	$	1,300,000	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	1,300,000	(2) 	
601 Lexington Avenue (55% ownership)	  	 	3,167	  	 	 	13,051	  	 	 	13,684	  	 	 	14,349	  	 	 	15,045	  	 	 	630,486	  	 	 	689,782	  	
New Dominion Technology Park, Building One	  	 	—  	  	 	 	2,878	  	 	 	3,100	  	 	 	3,340	  	 	 	3,598	  	 	 	22,906	  	 	 	35,822	  	
University Place	  	 	413	  	 	 	1,725	  	 	 	1,849	  	 	 	1,981	  	 	 	2,123	  	 	 	1,500	  	 	 	9,591	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable	  	 	3,580	  	 	 	1,317,654	  	 	 	18,633	  	 	 	19,670	  	 	 	20,766	  	 	 	654,892	  	 	 	2,035,195	  	
Fair Value Interest Adjustment	  	 	11,140	  	 	 	33,830	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	44,970	  	
Deferred Financing Costs, Net	  	 	(109	) 	 	 	(629	) 	 	 	(431	) 	 	 	(431	) 	 	 	(431	) 	 	 	(427	) 	 	 	(2,458	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage Notes Payable, Net	  	$	14,611	  	 	$	1,350,855	  	 	$	18,202	  	 	$	19,239	  	 	$	20,335	  	 	$	654,465	  	 	$	2,077,707	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mezzanine Notes Payable	  	$	—  	  	 	$	306,000	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	306,000	  	
Fair Value Interest Adjustment	  	 	355	  	 	 	1,093	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	1,448	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mezzanine Notes Payable	  	$	355	  	 	$	307,093	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	307,448	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Senior Notes, Face Amount	  	$	—  	  	 	$	—  	  	 	$	850,000	  	 	$	700,000	  	 	$	700,000	  	 	$	5,050,000	  	 	$	7,300,000	  	
Discount Amortization	  	 	(645	) 	 	 	(2,643	) 	 	 	(2,696	) 	 	 	(2,503	) 	 	 	(2,528	) 	 	 	(8,414	) 	 	 	(19,429	) 	
Deferred Financing Costs, Net	  	 	(1,547	) 	 	 	(6,187	) 	 	 	(6,019	) 	 	 	(5,036	) 	 	 	(4,510	) 	 	 	(13,505	) 	 	 	(36,804	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Senior Notes, Net	  	$	(2,192	) 	 	$	(8,830	) 	 	$	841,285	  	 	$	692,461	  	 	$	692,962	  	 	$	5,028,081	  	 	$	7,243,767	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Outside Members’ Notes Payable	  	$	—  	  	 	$	180,000	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	180,000	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Fixed Rate Debt	  	$	12,774	  	 	$	1,829,118	  	 	$	859,487	  	 	$	711,700	  	 	$	713,297	  	 	$	5,682,546	  	 	$	9,808,922	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	$	12,774	  	 	$	1,829,118	  	 	$	859,487	  	 	$	711,700	  	 	$	713,297	  	 	$	5,682,546	  	 	$	9,808,922	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% of Consolidated Debt	  	 	0.13	% 	 	 	18.65	% 	 	 	8.76	% 	 	 	7.26	% 	 	 	7.27	% 	 	 	57.93	% 	 	 	100.00	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Balloon Payments	  	$	—  	  	 	$	1,786,000	  	 	$	850,000	  	 	$	700,000	  	 	$	700,000	  	 	$	5,683,554	  	 	$	9,719,554	  	
Scheduled Principal Amortization	  	$	3,580	  	 	$	17,654	  	 	$	18,633	  	 	$	19,670	  	 	$	20,766	  	 	$	21,338	  	 	$	101,641	  	
GAAP Weighted Average Floating Rate Debt (3) (4)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Weighted Average Fixed Rate Debt (3) (4)	  	 	5.03	% 	 	 	3.04	% 	 	 	3.89	% 	 	 	5.96	% 	 	 	5.70	% 	 	 	3.94	% 	 	 	4.06	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total GAAP Weighted Average Rate (3) (4)	  	 	5.03	% 	 	 	3.04	% 	 	 	3.89	% 	 	 	5.96	% 	 	 	5.70	% 	 	 	3.94	% 	 	 	4.06	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Stated Weighted Average Rate (4)	  	 	4.99	% 	 	 	5.96	% 	 	 	3.77	% 	 	 	5.87	% 	 	 	5.63	% 	 	 	3.86	% 	 	 	4.50	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unsecured Line of Credit - Matures July 26, 2018

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Outstanding	 	  	Letters of	 	  	Remaining Capacity	 	
Facility	  	at 9/30/2016	 	  	Credit	 	  	at 9/30/2016	 	
$ 1,000,000	  	$	—  	  	  	$	6,716	  	  	$	993,284	  	
Unsecured and Secured Debt Analysis (4) 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	Stated Weighted	 	 	GAAP Weighted	 	 	Weighted Average	 	
 	  	% of Total Debt	 	 	Average Rate	 	 	Average Rate	 	 	Maturity (years)	 	
Unsecured Debt	  	 	75.23	% 	 	 	4.12	% 	 	 	4.21	% 	 	 	6.2	  	
Secured Debt	  	 	24.77	% 	 	 	5.64	% 	 	 	3.61	% 	 	 	2.4	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	 	100.00	% 	 	 	4.50	% 	 	 	4.06	% 	 	 	5.2	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Floating and Fixed Rate Debt Analysis (4) 

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	Stated Weighted	 	 	GAAP Weighted	 	 	Weighted Average	 	
 	  	% of Total Debt	 	 	Average Rate	 	 	Average Rate	 	 	Maturity (years)	 	
Floating Rate Debt	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
Fixed Rate Debt	  	 	100.00	% 	 	 	4.50	% 	 	 	4.06	% 	 	 	5.2	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Debt	  	 	100.00	% 	 	 	4.50	% 	 	 	4.06	% 	 	 	5.2	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Interest Rate Hedging Instruments

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	Weighted-Average	 	 	 	 	  	 	 	
 	  	Notional Amount	 	  	10-Year Swap Rate	 	 	Effective Date	 	  	Termination Date	 	
Forward-starting interest rate swaps (5)	  	 	450,000	  	  	 	2.619	% 	 	 	June 1, 2017	  	  	 	June 1, 2027	  	
 
(1)	Excludes unconsolidated joint ventures. For information on BXP’s unconsolidated joint venture debt, see page 17.	
(2)	This property has a fair value interest adjustment that is shown on the Fair Value Interest Adjustment line.	
(3)	The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, effects of hedging transactions and adjustments required to reflect loans at their fair values upon acquisition or consolidation.	
(4)	Percentage of total debt, weighted average rates and weighted average maturities exclude the Outside Members’ Notes Payable because they are allocated to the Company’s partners through noncontrolling interests in property partnerships.	
(5)	Represents forward interest rate swap contracts entered into by the Company’s 767 Fifth Partners LLC consolidated entity (the entity in which the Company has a 60% interest and that owns 767 Fifth Avenue (the GM Building) in New York City).	
 
15

THIRD QUARTER 2016
 
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 September 30, 2016 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.

 	  	 	 	 	Senior Notes	 	 	Senior Notes	 	
 	  	 	 	 	Issued Prior to	 	 	Issued On or After	 	
 	  	 	 	 	October 9, 2009	 	 	October 9, 2009	 	
 	  	 	 	 	September 30, 2016	 	
Total Assets:	  	 	 	 	 	 	 	 	 	 	 	 	
Capitalized Property Value (1)	  	 	 	 	 	$	22,985,995	  	 	$	23,424,925	  	
Cash and Cash Equivalents	  	 	 	 	 	 	419,323	  	 	 	419,323	  	
Investments in Securities	  	 	 	 	 	 	23,022	  	 	 	23,022	  	
Undeveloped Land, at Cost (including Joint Venture %)	  	 	 	 	 	 	290,594	  	 	 	290,594	  	
Development in Process, at Cost (including Joint Venture %)	  	 	 	 	 	 	1,080,398	  	 	 	1,080,398	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total Assets	  	 	 	 	 	$	24,799,332	  	 	$	25,238,262	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Unencumbered Assets	  	 	 	 	 	$	19,440,151	  	 	$	19,860,307	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Consolidated Secured Debt (Fixed and Variable) (2)	  	 	 	 	 	$	2,035,195	  	 	$	2,035,195	  	
Mezzanine Notes Payable (3)	  	 	 	 	 	 	306,000	  	 	 	306,000	  	
Unconsolidated Joint Venture Debt (4)	  	 	 	 	 	 	351,397	  	 	 	351,397	  	
Outside Members’ Notes Payable	  	 	 	 	 	 	180,000	  	 	 	180,000	  	
Contingent Liabilities & Letters of Credit	  	 	 	 	 	 	14,032	  	 	 	14,032	  	
Unsecured Debt (5)	  	 	 	 	 	 	7,300,000	  	 	 	7,300,000	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Total Outstanding Debt	  	 	 	 	 	$	10,186,624	  	 	$	10,186,624	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Consolidated EBITDA:	  	 	 	 	 	 	 	 	 	 	 	 	
Income before Gains on Sales of Real Estate (per Consolidated Income Statement)	  	 	 	 	 	$	58,521	  	 	$	58,521	  	
Subtract: Income from Unconsolidated Joint Ventures (per Consolidated Income Statement)	   	 	 	(1,464	) 	 	 	(1,464	) 	
Subtract: Gains from Investments in Securities (per Consolidated Income Statement)	  	 	 	 	 	 	(976	) 	 	 	(976	) 	
Add: Losses from Interest Rate Contracts (per Consolidated Income Statement)	  	 	 	 	 	 	140	  	 	 	140	  	
Add: Losses from Early Extinguishments of Debt (per Consolidated Income Statement)	  	 	 	 	 	 	371	  	 	 	371	  	
Add: Interest Expense (per Consolidated Income Statement)	  	 	 	 	 	 	104,641	  	 	 	104,641	  	
Add: Depreciation and Amortization (per Consolidated Income Statement)	  	 	 	 	 	 	203,748	  	 	 	203,748	  	
Add: Impairment Loss (per Consolidated Income Statement)	  	 	 	 	 	 	1,783	  	 	 	1,783	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
EBITDA	  	 	 	 	 	 	366,764	  	 	 	366,764	  	
Add: BXP’s share of unconsolidated joint venture EBITDA	  	 	 	 	 	 	14,436	  	 	 	14,436	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Consolidated EBITDA	  	 	 	 	 	$	381,200	  	 	$	381,200	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Interest Expense:	  	 	 	 	 	 	 	 	 	 	 	 	
Interest Expense (per Consolidated Income Statement)	  	 	 	 	 	$	104,641	  	 	$	104,641	  	
Add: BXP’s share of unconsolidated joint venture interest expense	  	 	 	 	 	 	4,025	  	 	 	4,025	  	
Less: Amortization of financing costs (including BXP’s share of unconsolidated joint ventures)	   	 	 	(2,002	) 	 	 	(2,002	) 	
Less: Interest expense funded by construction loan draws	  	 	 	 	 	 	(75	) 	 	 	(75	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Adjusted Interest Expense	  	 	 	 	 	$	106,589	  	 	$	106,589	  	

 	  	Test	 	 	Actual	 	 	Actual	 	
Covenant Ratios and Related Data	  	 	 	 	 	 	 	 	 	 	 	 	
Total Outstanding Debt/Total Assets	  	 	Less than 60%	  	 	 	41.1	% 	 	 	40.4	% 	
Secured Debt/Total Assets	  	 	Less than 50%	  	 	 	10.9	% 	 	 	10.7	% 	
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	  	 	Greater than 1.50x	  	 	 	3.58	  	 	 	3.58	  	
Unencumbered Assets/ Unsecured Debt	  	 	Greater than 150%	  	 	 	266.3	% 	 	 	272.1	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Unencumbered Consolidated Property EBITDA (6)	  	 	 	 	 	$	323,398	  	 	$	323,398	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
Unencumbered Interest Coverage (Unencumbered Consolidated Property EBITDA to Unsecured Interest Expense)	  	 	 	 	 	 	4.59	  	 	 	4.59	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	
% of Unencumbered Consolidated Property EBITDA to Consolidated EBITDA	  	 	 	 	 	 	84.8	% 	 	 	84.8	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	
# of in-service unencumbered properties	  	 	 	 	 	 	153	  	 	 	153	  	

(1)	For senior notes issued prior to October 9, 2009, Capitalized Property Value is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.5% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized Property Value for senior notes issued on or after October 9, 2009 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)	Excludes aggregate fair value interest adjustment of $44,970 and deferred financing costs, net of $2,458.	
(3)	Excludes aggregate fair value interest adjustment of $1,448.	
(4)	Excludes aggregate deferred financing costs, net of $1,172.	
(5)	Excludes aggregate debt discount of $19,429 and deferred financing costs, net of $36,804.	
(6)	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 September 30, 2016, these excluded amounts were approximately $(17,072), $74,375, $(1,637) and $2,136, respectively.	

16

THIRD QUARTER 2016
 
UNCONSOLIDATED JOINT VENTURES (1)
as of September 30, 2016
(dollars in thousands)
Balance Sheet Information

 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	 	 	  	Mortgage/	 	
 	  	 	 	 	 	 	  	Construction	 	
 	  	BXP’s Nominal	 	 	 	 	  	Loans	 	
Property	  	Ownership	 	 	Net Equity (2)	 	  	Payable, Net	 	
540 Madison Avenue	  	 	60.00	% 	 	$	69,602	  	  	$	71,796	  	
Market Square North	  	 	50.00	% 	 	 	(8,483	) 	  	 	61,820	  	
Metropolitan Square	  	 	51.00	% 	 	 	9,552	  	  	 	84,965	  	
901 New York Avenue	  	 	25.00	% 	 	 	(10,898	) 	  	 	55,882	  	
Wisconsin Place (3)	  	 	33.33	% 	 	 	42,073	  	  	 	—  	  	
Annapolis Junction (4)	  	 	50.00	% 	 	 	21,075	  	  	 	44,380	  	
500 North Capitol Street, N.W.	  	 	30.00	% 	 	 	(3,395	) 	  	 	31,382	  	
Colorado Center	  	 	49.80	% 	 	 	507,259	  	  	 	—  	  	
The Hub on Causeway (Phase 1)	  	 	50.00	% 	 	 	33,820	  	  	 	—  	  	
1001 6th Street	  	 	50.00	% 	 	 	42,541	  	  	 	—  	  	
Dock72	  	 	50.00	% 	 	 	25,980	  	  	 	—  	  	
1265 Main Street	  	 	50.00	% 	 	 	23,757	  	  	 	—  	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	 	 	 	$	752,883	  	  	$	350,225	  	
 	  	 	 	 	 	 	 	 	  	 	 	 	
Debt Maturities and Principal Payments by Property

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Property	  	2016	 	 	2017	 	 	2018	 	 	2019	 	 	2020	 	 	Thereafter	 	 	Total	 	
Metropolitan Square (51%)	  	$	340	  	 	$	1,410	  	 	$	1,493	  	 	$	1,582	  	 	$	80,327	  	 	$	—  	  	 	$	85,152	  	
540 Madison Avenue (60%)	  	 	—  	  	 	 	—  	  	 	 	72,000	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	72,000	  	
Market Square North (50%)	  	 	279	  	 	 	1,148	  	 	 	1,205	  	 	 	1,265	  	 	 	58,091	  	 	 	—  	  	 	 	61,988	  	
901 New York Avenue (25%)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	955	  	 	 	55,295	  	 	 	56,250	  	
500 North Capitol Street, N.W. (30%)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	31,500	  	 	 	31,500	  	
Annapolis Junction Building One (50%)	  	 	70	  	 	 	279	  	 	 	19,519	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	19,868	(5) 	
Annapolis Junction Building Six (50%)	  	 	6,477	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	6,477	  	
Annapolis Junction Building Seven (50%)	  	 	—  	  	 	 	10,797	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	10,797	(6) 	
Annapolis Junction Building Eight (50%)	  	 	—  	  	 	 	7,365	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	7,365	(7) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	7,166	  	 	 	20,999	  	 	 	94,217	  	 	 	2,847	  	 	 	139,373	  	 	 	86,795	  	 	 	351,397	  	
Deferred Financing Costs, Net	  	 	(106	) 	 	 	(359	) 	 	 	(219	) 	 	 	(156	) 	 	 	(111	) 	 	 	(221	) 	 	 	(1,172	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage/Construction Loans Payable, Net	  	$	7,060	  	 	$	20,640	  	 	$	93,998	  	 	$	2,691	  	 	$	139,262	  	 	$	86,574	  	 	$	350,225	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
GAAP Weighted Average Rate	  	 	3.07	% 	 	 	2.84	% 	 	 	2.30	% 	 	 	5.15	% 	 	 	5.42	% 	 	 	3.87	% 	 	 	4.00	% 	
% of Total Debt	  	 	2.02	% 	 	 	5.89	% 	 	 	26.84	% 	 	 	0.77	% 	 	 	39.76	% 	 	 	24.72	% 	 	 	100.00	% 	
Balloon Payments	  	$	6,477	  	 	$	18,162	  	 	$	91,472	  	 	$	—  	  	 	$	136,880	  	 	$	81,932	  	 	$	334,923	  	
Scheduled Amortization	  	$	689	  	 	$	2,837	  	 	$	2,745	  	 	$	2,847	  	 	$	2,493	  	 	$	4,863	  	 	$	16,474	  	
Floating and Fixed Rate Debt Analysis

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	Stated Weighted	 	 	GAAP Weighted	 	 	Weighted Average	 	
 	  	% of Total Debt	 	 	Average Rate	 	 	Average Rate	 	 	Maturity (years)	 	
Floating Rate Debt	  	 	33.17	% 	 	 	2.09	% 	 	 	2.28	% 	 	 	1.4	  	
Fixed Rate Debt	  	 	66.83	% 	 	 	4.79	% 	 	 	4.85	% 	 	 	5.2	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Debt	  	 	100.00	% 	 	 	3.89	% 	 	 	4.00	% 	 	 	4.0	  	

(1)	Amounts represent the Company’s share based on its ownership percentage.	
(2)	As of September 30, 2016, certain investments with deficit balances aggregating ($22,776) have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheet.	
(3)	Represents the Company’s interest in the joint venture entity that owns the land, parking garage and infrastructure. The Company’s entity that owns 100% of the office component of the project is consolidated within the accounts of the Company.	
(4)	Annapolis Junction includes four in-service properties and two undeveloped land parcels.	
(5)	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. The loan has one, three-year extension option, subject to certain conditions including that no event of default exists or is ongoing.	
(6)	Loan has one, one-year extension option, subject to certain conditions.	
(7)	Loan has two, one-year extension options, subject to certain conditions.	

17

THIRD QUARTER 2016
 
UNCONSOLIDATED JOINT VENTURES (continued)
(unaudited and dollars in thousands)
 
Results of Operations
for the three months ended September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	500 North	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Total	 	
 	 	540 Madison	 	 	Market Square	 	 	Metropolitan	 	 	901 New York	 	 	Wisconsin	 	 	Annapolis	 	 	Capitol	 	 	Colorado	 	 	The Hub on Causeway	 	 	1001	 	 	 	 	 	1265 Main	 	 	Unconsolidated	 	
 	 	Avenue	 	 	North	 	 	Square	 	 	Avenue	 	 	Place (1)	 	 	Junction (2)	 	 	Street, N.W.	 	 	Center	 	 	(Phase 1)	 	 	6th Street	 	 	Dock72	 	 	Street	 	 	Joint Ventures	 	
REVENUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental (3)	 	$	6,531	  	 	$	3,798	  	 	$	4,499	  	 	$	6,356	  	 	$	982	  	 	$	2,023	  	 	$	2,738	  	 	$	9,736	  	 	$	—  	  	 	$	241	  	 	$	—  	  	 	$	—  	  	 	$	36,904	  	
Operating recoveries	 	 	965	  	 	 	842	  	 	 	1,357	  	 	 	1,173	  	 	 	352	  	 	 	513	  	 	 	1,142	  	 	 	418	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	6,762	  	
Straight-line rent	 	 	(56	) 	 	 	1,085	  	 	 	1,986	  	 	 	509	  	 	 	—  	  	 	 	41	  	 	 	311	  	 	 	1,354	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	5,230	  	
Fair value lease revenue	 	 	(2	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	96	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	94	  	
Lease termination fees	 	 	22	  	 	 	—  	  	 	 	(10	) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	12	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	 	 	7,460	  	 	 	5,725	  	 	 	7,832	  	 	 	8,038	  	 	 	1,334	  	 	 	2,577	  	 	 	4,191	  	 	 	11,604	  	 	 	—  	  	 	 	241	  	 	 	—  	  	 	 	—  	  	 	 	49,002	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	 	 	3,680	  	 	 	2,298	  	 	 	3,639	  	 	 	3,304	  	 	 	575	  	 	 	1,658	  	 	 	1,365	  	 	 	4,907	  	 	 	—  	  	 	 	327	  	 	 	—  	  	 	 	—  	  	 	 	21,753	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET OPERATING INCOME/(LOSS)	 	 	3,780	  	 	 	3,427	  	 	 	4,193	  	 	 	4,734	  	 	 	759	  	 	 	919	  	 	 	2,826	  	 	 	6,697	  	 	 	—  	  	 	 	(86	) 	 	 	—  	  	 	 	—  	  	 	 	27,249	  	
Interest	 	 	676	  	 	 	1,526	  	 	 	2,428	  	 	 	2,075	  	 	 	—  	  	 	 	577	  	 	 	1,118	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	8,400	  	
Depreciation and amortization	 	 	1,891	  	 	 	975	  	 	 	1,707	  	 	 	1,386	  	 	 	1,383	  	 	 	1,044	  	 	 	911	  	 	 	2,741	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	12,038	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUBTOTAL	 	 	2,567	  	 	 	2,501	  	 	 	4,135	  	 	 	3,461	  	 	 	1,383	  	 	 	1,621	  	 	 	2,029	  	 	 	2,741	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	20,438	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/(LOSS)	 	$	1,213	  	 	$	926	  	 	$	58	  	 	$	1,273	  	 	$	(624	) 	 	$	(702	) 	 	$	797	  	 	$	3,956	  	 	$	—  	  	 	$	(86	) 	 	$	—  	  	 	$	—  	  	 	$	6,811	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s nominal ownership percentage	 	 	60.00	% 	 	 	50.00	% 	 	 	51.00	% 	 	 	25.00	% 	 	 	33.33	% 	 	 	50.00	% 	 	 	30.00	% 	 	 	49.80	% 	 	 	50.00	% 	 	 	50.00	% 	 	 	50.00	% 	 	 	50.00	% 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net income/(loss)	 	$	728	  	 	$	463	  	 	$	30	  	 	$	350	(4) 	 	$	(207	) 	 	$	(351	) 	 	$	239	  	 	$	1,970	  	 	$	—  	  	 	$	(43	) 	 	$	—  	  	 	$	—  	  	 	$	3,179	  	
Basis differential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight-line rent	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	732	(5) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	732	  	
Fair value lease revenue	 	 	1	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	462	(5) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	463	  	
Depreciation and amortization	 	 	171	  	 	 	(7	) 	 	 	17	  	 	 	(5	) 	 	 	(7	) 	 	 	(7	) 	 	 	(25	) 	 	 	(3,047	)(5) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(2,910	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total basis differential (6)	 	 	172	  	 	 	(7	) 	 	 	17	  	 	 	(5	) 	 	 	(7	) 	 	 	(7	) 	 	 	(25	) 	 	 	(1,853	)(5) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(1,715	) 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income/(loss) from unconsolidated joint ventures	 	$	900	  	 	$	456	  	 	$	47	  	 	$	345	(4) 	 	$	(214	) 	 	$	(358	) 	 	$	214	  	 	$	117	  	 	$	—  	  	 	$	(43	) 	 	$	—  	  	 	$	—  	  	 	$	1,464	  	
BXP’s share of depreciation & amortization	 	 	1,024	  	 	 	499	  	 	 	882	  	 	 	1,003	(4) 	 	 	466	  	 	 	533	  	 	 	308	  	 	 	4,413	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	9,128	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of Funds from Operations (FFO)	 	$	1,924	  	 	$	955	  	 	$	929	  	 	$	1,348	  	 	$	252	  	 	$	175	  	 	$	522	  	 	$	4,530	  	 	$	—  	  	 	$	(43	) 	 	$	—  	  	 	$	—  	  	 	$	10,592	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of interest expense	 	$	406	  	 	$	763	  	 	$	1,238	  	 	$	994	(4) 	 	$	—  	  	 	$	289	  	 	$	335	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	4,025	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of fair value interest adjustment	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of amortization of financing costs	 	$	31	  	 	$	11	  	 	$	13	  	 	$	21	  	 	$	—  	  	 	$	33	  	 	$	4	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	113	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of capitalized interest	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	172	  	 	$	—  	  	 	$	119	  	 	$	125	  	 	$	416	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of non-cash termination income adjustment (fair value lease amounts)	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of revenue (7) (8)	 	$	4,476	  	 	$	2,863	  	 	$	3,994	  	 	$	3,852	(4) 	 	$	445	  	 	$	1,289	  	 	$	1,257	  	 	$	6,974	  	 	$	—  	  	 	$	121	  	 	$	—  	  	 	$	—  	  	 	$	25,271	  	
BXP’s share of operating expenses	 	 	2,208	  	 	 	1,149	  	 	 	1,856	  	 	 	1,583	(4) 	 	 	192	  	 	 	829	  	 	 	410	  	 	 	2,444	  	 	 	 	 	 	 	164	  	 	 	 	 	 	 	 	 	 	 	10,835	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net operating income/(loss) (7) (8)	 	 	2,268	  	 	 	1,714	  	 	 	2,138	  	 	 	2,269	(4) 	 	 	253	  	 	 	460	  	 	 	847	  	 	 	4,530	  	 	 	—  	  	 	 	(43	) 	 	 	—  	  	 	 	—  	  	 	 	14,436	  	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of lease termination fees	 	 	13	  	 	 	—  	  	 	 	(5	) 	 	 	—  	(4) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	8	  	
BXP’s share of straight-line rent	 	 	(34	) 	 	 	543	  	 	 	1,013	  	 	 	244	(4) 	 	 	—  	  	 	 	21	  	 	 	93	  	 	 	1,405	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	3,285	  	
BXP’s share of fair value lease revenue	 	 	(1	) 	 	 	—  	  	 	 	—  	  	 	 	—  	(4) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	512	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	511	  	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of lease transaction costs that qualify as rent inducements	 	 	—  	  	 	 	—  	  	 	 	15	  	 	 	—  	(4) 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	15	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net operating income/(loss) (excluding lease termination fees) - cash basis (7) (8)	 	$	2,290	  	 	$	1,171	  	 	$	1,145	  	 	$	2,025	(4) 	 	$	253	  	 	$	439	  	 	$	754	  	 	$	2,613	  	 	$	—  	  	 	$	(43	) 	 	$	—  	  	 	$	—  	  	 	$	10,647	  	

(1)	Represents the Company’s interest in the joint venture entity that owns the land, parking garage and infrastructure. The Company’s entity that owns 100% of the office component of the project is consolidated within the accounts of the Company.	
(2)	Annapolis Junction includes four properties in service and two undeveloped land parcels.	
(3)	Includes approximately $61 of management services income and approximately $34 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 $3,179 of operating recoveries.	
(8)	Includes the Company’s share of approximately $36 of management services income and approximately $16 of interest and other income.	
 
18

THIRD QUARTER 2016
 
CONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
Balance Sheets
as of September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s ownership percentage	  	 	60.00	% 	 	 	55.00	% 	 	 	95.00	% 	 	 	 	 	

 	  	 	 	 	Norges Joint Ventures	 	 	 	 	 	 	 	
 	  	767 Fifth Avenue
(The GM Building)	 	 	Times Square Tower
601 Lexington Avenue
100 Federal Street
Atlantic Wharf Office	 	 	Salesforce Tower	 	 	Total
Consolidated
Joint Ventures	 	
ASSETS	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate, net	  	$	3,436,843	  	 	$	2,154,339	(1) 	 	$	668,376	  	 	$	6,259,558	  	
Cash and cash held in escrows	  	 	82,671	  	 	 	138,898	  	 	 	27,446	  	 	 	249,015	  	
Other assets	  	 	123,083	  	 	 	191,954	  	 	 	344	  	 	 	315,381	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total assets	  	$	3,642,597	  	 	$	2,485,191	  	 	$	696,166	  	 	$	6,823,954	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Mortgage notes payable, net	  	$	1,344,772	  	 	$	687,942	  	 	$	—  	  	 	$	2,032,714	  	
Mezzanine notes payable	  	 	307,448	  	 	 	—  	  	 	 	—  	  	 	 	307,448	  	
Outside members’ notes payable	  	 	180,000	  	 	 	—  	  	 	 	—  	  	 	 	180,000	  	
Accrued interest on related party notes	  	 	144,825	  	 	 	—  	  	 	 	—  	  	 	 	144,825	  	
Other liabilities	  	 	183,641	  	 	 	60,628	  	 	 	90,328	  	 	 	334,597	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities	  	 	2,160,686	  	 	 	748,570	  	 	 	90,328	  	 	 	2,999,584	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Equity:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.	  	 	1,084,393	(2) 	 	 	634,079	  	 	 	582,146	  	 	 	2,300,618	  	
Noncontrolling interests	  	 	397,518	  	 	 	1,102,542	  	 	 	23,692	  	 	 	1,523,752	(3) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total equity	  	 	1,481,911	  	 	 	1,736,621	  	 	 	605,838	  	 	 	3,824,370	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	3,642,597	  	 	$	2,485,191	  	 	$	696,166	  	 	$	6,823,954	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of mortgage notes payable, net	  	$	537,909	  	 	$	309,574	  	 	$	—  	  	 	$	847,483	  	
Partners’ share of mezzanine notes payable	  	 	122,979	  	 	 	—  	  	 	 	—  	  	 	 	122,979	  	
Outside members’ notes payable	  	 	180,000	  	 	 	—  	  	 	 	—  	  	 	 	180,000	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of consolidated debt	  	$	840,888	  	 	$	309,574	  	 	$	—  	  	 	$	1,150,462	  	

(1)	During the three months ended September 30, 2016, the consolidated entity recognized approximately $47.6 million of depreciation expense associated with the acceleration of depreciation on the assets being removed from service as part of the redevelopment of the low-rise portion of 601 Lexington Avenue.	
(2)	Amount is adjusted for related party notes and accrued interest that are allocated to BXP’s partners through noncontrolling interests in property partnerships.	
(3)	Amount excludes preferred shareholders’ capital of approximately $0.1 million.	

19

THIRD QUARTER 2016
 
CONSOLIDATED JOINT VENTURES (continued)
(unaudited and in thousands)
Income Statements
for the three months ended September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	 	Norges Joint Ventures	 	 	 	 	 	 	 	
 	  	767 Fifth Avenue
(The GM Building)	 	 	Times Square Tower
601 Lexington Avenue
100 Federal Street
Atlantic Wharf Office	 	 	Salesforce Tower	 	 	Total
Consolidated
Joint Ventures	 	
REVENUE	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	$	68,619	  	 	$	85,969	  	 	$	—  	  	 	$	154,588	  	
Straight-line rent	  	 	1,717	  	 	 	44	  	 	 	—  	  	 	 	1,761	  	
Fair value lease revenue	  	 	3,466	  	 	 	1,552	  	 	 	—  	  	 	 	5,018	  	
Termination income	  	 	—  	  	 	 	(935	) 	 	 	—  	  	 	 	(935	) 	
Parking and other	  	 	624	  	 	 	1,417	  	 	 	—  	  	 	 	2,041	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	74,426	  	 	 	88,047	  	 	 	—  	  	 	 	162,473	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
EXPENSES	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	29,212	  	 	 	34,302	(1) 	 	 	—  	  	 	 	63,514	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET OPERATING INCOME	  	 	45,214	  	 	 	53,745	  	 	 	—  	  	 	 	98,959	  	
Management services income	  	 	(375	) 	 	 	(651	) 	 	 	—  	  	 	 	(1,026	) 	
Interest and other income	  	 	(90	) 	 	 	(168	) 	 	 	—  	  	 	 	(258	) 	
Interest expense	  	 	24,156	  	 	 	8,243	  	 	 	—  	  	 	 	32,399	  	
Interest expense - outside members’ notes	  	 	8,694	  	 	 	—  	  	 	 	—  	  	 	 	8,694	  	
Fair value interest adjustment	  	 	(11,422	) 	 	 	—  	  	 	 	—  	  	 	 	(11,422	) 	
Depreciation and amortization	  	 	24,571	  	 	 	69,173	(1) 	 	 	—  	  	 	 	93,744	  	
Other	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
SUBTOTAL	  	 	45,534	  	 	 	76,597	  	 	 	—  	  	 	 	122,131	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NET INCOME/(LOSS)	  	$	(320	) 	 	$	(22,852	) 	 	$	—  	  	 	$	(23,172	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s ownership percentage	  	 	60.00	% 	 	 	55.00	% 	 	 	95.00	% 	 	 	 	 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of NOI (2)	  	$	18,086	  	 	$	24,185	  	 	$	—  	  	 	$	42,271	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of NOI	  	$	27,128	  	 	$	29,560	  	 	$	—  	  	 	$	56,688	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Unearned portion of capitalized fees (3)	  	$	189	  	 	$	61	  	 	$	—  	  	 	$	250	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of partners’ noncontrolling interest (NCI):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	  	$	(320	) 	 	$	(22,852	) 	 	$	—  	  	 	$	(23,172	) 	
Add depreciation & amortization - BXP’s basis difference	  	 	83	  	 	 	35	  	 	 	—  	  	 	 	118	  	
Special allocation - BXP’s basis	  	 	—  	  	 	 	(482	) 	 	 	—  	  	 	 	(482	) 	
Add partners’ share of outside members’ loan interest	  	 	8,694	  	 	 	—  	  	 	 	—  	  	 	 	8,694	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss) before interest allocation	  	$	8,457	  	 	$	(23,299	) 	 	$	—  	  	 	$	(14,842	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of net income before interest allocation (2)	  	$	3,383	  	 	$	(10,485	) 	 	$	—  	  	 	$	(7,102	) 	
Partners’ share of outside members’ loan interest (2)	  	 	(8,694	) 	 	 	—  	  	 	 	—  	  	 	 	(8,694	) 	
Allocation of management and other fees to non-controlling partners (2)	  	 	(625	) 	 	 	(801	) 	 	 	—  	  	 	 	(1,426	) 	
Accretion and adjustments (2)	  	 	—  	  	 	 	—  	  	 	 	(3	) 	 	 	(3	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ NCI (2)	  	$	(5,936	) 	 	$	(11,286	) 	 	$	(3	) 	 	$	(17,225	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of partners’ share of FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income/(loss)	  	$	(320	) 	 	$	(22,852	) 	 	$	—  	  	 	$	(23,172	) 	
Add depreciation & amortization	  	 	24,571	  	 	 	69,173	  	 	 	—  	  	 	 	93,744	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Entity FFO	  	$	24,251	  	 	$	46,321	  	 	$	—  	  	 	$	70,572	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ NCI (2)	  	$	(5,936	) 	 	$	(11,286	) 	 	$	(3	) 	 	$	(17,225	) 	
Partners’ share of depreciation and amortization after BXP’s basis differential (2)	  	 	9,795	  	 	 	31,112	  	 	 	—  	  	 	 	40,907	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share FFO (2)	  	$	3,859	  	 	$	19,826	  	 	$	(3	) 	 	$	23,682	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of BXP’s share of FFO:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of net income/(loss) adjusted for partners’ NCI	  	$	5,616	  	 	$	(11,566	) 	 	$	3	  	 	$	(5,947	) 	
Depreciation & amortization - BXP’s basis difference	  	 	83	  	 	 	35	  	 	 	—  	  	 	 	118	  	
BXP’s share of depreciation & amortization	  	 	14,693	  	 	 	38,026	  	 	 	—  	  	 	 	52,719	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
BXP’s share of FFO	  	$	20,392	  	 	$	26,495	  	 	$	3	  	 	$	46,890	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of select items:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of revenue (2)	  	$	29,770	  	 	$	39,621	  	 	$	—  	  	 	$	69,391	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of interest expense (2)	  	$	18,356	  	 	$	3,673	  	 	$	—  	  	 	$	22,029	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of fair value interest adjustment (2)	  	$	(4,569	) 	 	$	—  	  	 	$	—  	  	 	$	(4,569	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of amortization of financing costs (2)	  	$	2	  	 	$	36	  	 	$	—  	  	 	$	38	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of capitalized interest (2)	  	$	—  	  	 	$	21	  	 	$	—  	  	 	$	21	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Partners’ share of non-cash termination income adjustment (fair value lease amounts) (2)	  	$	—  	  	 	$	—  	  	 	$	—  	  	 	$	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of Partners’ share of NOI (2):	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue	  	$	29,770	  	 	$	39,621	  	 	$	—  	  	 	$	69,391	  	
Less: Lease termination fees	  	 	—  	  	 	 	(421	) 	 	 	—  	  	 	 	(421	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees)	  	 	29,770	  	 	 	40,042	  	 	 	—  	  	 	 	69,812	  	
Operating expenses	  	 	11,684	  	 	 	15,436	  	 	 	—  	  	 	 	27,120	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees)	  	$	18,086	  	 	$	24,606	  	 	$	—  	  	 	$	42,692	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees)	  	$	29,770	  	 	$	40,042	  	 	 	—  	  	 	$	69,812	  	
Less: Straight-line rent	  	 	687	  	 	 	20	  	 	 	—  	  	 	 	707	  	
          Fair value lease revenue	  	 	1,386	  	 	 	698	  	 	 	—  	  	 	 	2,084	  	
Add: Lease transaction costs that qualify as rent inducements (4)	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	  	 	27,697	  	 	 	39,324	  	 	 	—  	  	 	 	67,021	  	
Less: Operating expenses	  	 	11,684	  	 	 	15,436	  	 	 	—  	  	 	 	27,120	  	
Straight-line ground rent expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) - cash basis	  	$	16,013	  	 	$	23,888	  	 	$	—  	  	 	$	39,901	  	

(1)	During the three months ended September 30, 2016, the consolidated entity recognized approximately $0.8 million of demolition costs and approximately $47.6 million of depreciation expense associated with the acceleration of depreciation on the assets being removed from service as part of the redevelopment of the low-rise portion of 601 Lexington Avenue.	
(2)	Amounts represent the partners’ share based on their respective ownership percentage.	
(3)	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.	
(4)	Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Leasing transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 12.	
 
20

THIRD QUARTER 2016
 
RECONCILIATION OF NET INCOME TO NET OPERATING INCOME (NOI)
(in thousands)

 	  	For the three months ended	 	
 	  	September 30, 2016	 	 	September 30, 2015	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	184,082	  	
Preferred dividends	  	 	2,589	  	 	 	2,647	  	
 	  	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	79,342	  	 	 	186,729	  	
Net income attributable to noncontrolling interests:	  	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	21,302	  	
Noncontrolling interest in property partnerships (1)	  	 	(17,225	) 	 	 	115,240	  	
 	  	 	 	 	 	 	 	 	
Net income	  	 	71,504	  	 	 	323,271	  	
Gains on sales of real estate	  	 	(12,983	) 	 	 	(199,479	) 	
 	  	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	123,792	  	
Add:	  	 	 	 	 	 	 	 	
Losses from interest rate contracts	  	 	140	  	 	 	—  	  	
Losses from early extinguishments of debt	  	 	371	  	 	 	—  	  	
Interest expense	  	 	104,641	  	 	 	108,727	  	
Depreciation and amortization	  	 	203,748	  	 	 	153,015	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	
Transaction costs	  	 	249	  	 	 	254	  	
General and administrative expense	  	 	25,165	  	 	 	20,944	  	
Subtract:	  	 	 	 	 	 	 	 	
Gains (losses) from investments in securities	  	 	(976	) 	 	 	1,515	  	
Interest and other income	  	 	(3,628	) 	 	 	(3,637	) 	
Income from unconsolidated joint ventures	  	 	(1,464	) 	 	 	(2,647	) 	
Development and management services income	  	 	(6,364	) 	 	 	(5,912	) 	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	 	382,186	  	 	 	396,051	  	
Add:	  	 	 	 	 	 	 	 	
BXP’s share of NOI from unconsolidated joint ventures	  	 	14,436	(2) 	 	 	10,827	  	
 	  	 	 	 	 	 	 	 	
Combined NOI	  	 	396,622	  	 	 	406,878	  	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI from consolidated joint ventures	  	 	(42,271	)(3) 	 	 	(55,450	) 	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined NOI	  	 	354,351	  	 	 	351,428	  	
Subtract:	  	 	 	 	 	 	 	 	
Lease termination fees	  	 	170	  	 	 	(9,589	) 	
BXP’s share of lease termination fees from unconsolidated joint ventures	  	 	(8	)(2) 	 	 	—  	  	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of lease termination fees from consolidated joint ventures	  	 	(421	)(3) 	 	 	1,829	  	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined NOI (excluding lease termination fees)	  	$	354,092	  	 	$	343,668	  	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	$	382,186	  	 	$	396,051	  	
Subtract:	  	 	 	 	 	 	 	 	
NOI from non Same Properties (excluding lease termination fees) (4)(5)	  	 	(14,312	) 	 	 	(15,562	) 	
Lease termination fees	  	 	170	  	 	 	(9,589	) 	
 	  	 	 	 	 	 	 	 	
Same Property NOI (excluding lease termination fees)	  	 	368,044	  	 	 	370,900	  	
Add:	  	 	 	 	 	 	 	 	
BXP’s share of NOI from unconsolidated joint ventures	  	 	14,436	(2) 	 	 	10,827	  	
Subtract:	  	 	 	 	 	 	 	 	
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (4)	  	 	(4,862	) 	 	 	(95	) 	
BXP’s share of lease termination fees from unconsolidated joint ventures	  	 	(8	)(2) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Combined Same Property NOI (excluding lease termination fees)	  	 	377,610	  	 	 	381,632	  	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI from consolidated joint ventures	  	 	(42,271	)(3) 	 	 	(55,450	) 	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of lease termination fees from consolidated joint ventures	  	 	(421	)(3) 	 	 	1,829	  	
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding lease termination fees) (4)(5)	  	 	(460	)(3) 	 	 	5,323	  	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined Same Property NOI (excluding lease termination fees)	  	$	334,458	  	 	$	333,334	  	

(1)	These partnerships include 505 9th Street, N.W. in Washington, DC, which was sold on September 18, 2015, Fountain Square in Reston, VA, of which the Company acquired the remaining 50% interest on September 15, 2015, 767 Fifth Avenue (The GM Building), 601 Lexington Avenue and Times Square Tower in New York City, Salesforce Tower in San Francisco, CA and 100 Federal Street and Atlantic Wharf Office Building in Boston, MA. For additional information, refer to page 10.	
(2)	For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.	
(3)	For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.	
(4)	Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. Non Same Properties include properties that were sold prior to September 30, 2016 and therefore are no longer a part of the Company’s property portfolio.	
(5)	During the three months ended September 30, 2016, approximately 13% of 601 Lexington Avenue complex was removed from the in-service portfolio as part of a planned redevelopment. As a result, the partners’ share of NOI for the three months ended September 30, 2015, related to the planned redevelopment at 601 Lexington Avenue, is included in Partners’ share of NOI from non Same Properties from consolidated joint ventures.	
 
21

THIRD QUARTER 2016
 
RECONCILIATION OF NET INCOME TO NET OPERATING INCOME (NOI) - CASH BASIS
(in thousands)

 	  	For the three months ended	 	
 	  	September 30, 2016	 	 	September 30, 2015	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	184,082	  	
Preferred dividends	  	 	2,589	  	 	 	2,647	  	
 	  	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	79,342	  	 	 	186,729	  	
Net income attributable to noncontrolling interests:	  	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	21,302	  	
Noncontrolling interest in property partnerships (1)	  	 	(17,225	) 	 	 	115,240	  	
 	  	 	 	 	 	 	 	 	
Net income	  	 	71,504	  	 	 	323,271	  	
Gains on sales of real estate	  	 	(12,983	) 	 	 	(199,479	) 	
 	  	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	123,792	  	
Add:	  	 	 	 	 	 	 	 	
Losses from interest rate contracts	  	 	140	  	 	 	—  	  	
Losses from early extinguishments of debt	  	 	371	  	 	 	—  	  	
Interest expense	  	 	104,641	  	 	 	108,727	  	
Depreciation and amortization	  	 	203,748	  	 	 	153,015	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	
Transaction costs	  	 	249	  	 	 	254	  	
General and administrative expense	  	 	25,165	  	 	 	20,944	  	
Subtract:	  	 	 	 	 	 	 	 	
Gains (losses) from investments in securities	  	 	(976	) 	 	 	1,515	  	
Interest and other income	  	 	(3,628	) 	 	 	(3,637	) 	
Income from unconsolidated joint ventures	  	 	(1,464	) 	 	 	(2,647	) 	
Development and management services income	  	 	(6,364	) 	 	 	(5,912	) 	
 	  	 	 	 	 	 	 	 	
Net Operating Income (NOI)	  	 	382,186	  	 	 	396,051	  	
Subtract:	  	 	 	 	 	 	 	 	
Straight-line rent	  	 	(11,107	) 	 	 	(15,992	) 	
Fair value lease revenue	  	 	(6,547	) 	 	 	(8,838	) 	
Add:	  	 	 	 	 	 	 	 	
Straight-line ground rent expense adjustment (2)	  	 	1,031	  	 	 	891	  	
Lease transaction costs that qualify as rent inducements (3)	  	 	861	  	 	 	1,911	  	
 	  	 	 	 	 	 	 	 	
NOI - cash basis	  	 	366,424	  	 	$	374,023	  	
Subtract:	  	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) - cash basis from non Same Properties (4)(7)	  	 	(12,000	) 	 	 	(13,240	) 	
Lease termination fees	  	 	170	  	 	 	(9,589	) 	
 	  	 	 	 	 	 	 	 	
Same Property NOI (excluding lease termination fees) - cash basis	  	 	354,594	  	 	 	351,194	  	
Add:	  	 	 	 	 	 	 	 	
BXP’s share of NOI - cash basis from unconsolidated joint ventures	  	 	10,655	(5) 	 	 	11,145	  	
Subtract:	  	 	 	 	 	 	 	 	
BXP’s share of NOI (excluding lease termination fees) - cash basis from non Same Properties from unconsolidated joint ventures (4)	  	 	(2,924	) 	 	 	(899	) 	
BXP’s share of lease termination fees from unconsolidated joint ventures	  	 	(8	)(5) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	
Combined Same Property NOI (excluding lease termination fees) - cash basis	  	 	362,317	  	 	 	361,440	  	
Subtract:	  	 	 	 	 	 	 	 	
Partners’ share of NOI - cash basis from consolidated joint ventures	  	 	(39,480	)(6) 	 	 	(49,726	) 	
Add:	  	 	 	 	 	 	 	 	
Partners’ share of lease termination fees from consolidated joint ventures	  	 	(421	)(6) 	 	 	1,829	  	
Partners’ share of NOI (excluding lease termination fees) - cash basis from non Same Properties from consolidated joint ventures (4)(7)	  	 	(231	)(6) 	 	 	5,290	  	
 	  	 	 	 	 	 	 	 	
BXP’s Share of Combined Same Property NOI (excluding lease termination fees) - cash basis	  	$	322,185	  	 	$	318,833	  	

(1)	These partnerships include 505 9th Street, N.W. in Washington, DC, which was sold on September 18, 2015, Fountain Square in Reston, VA, of which the Company acquired the remaining 50% interest on September 15, 2015, 767 Fifth Avenue (The GM Building), 601 Lexington Avenue and Times Square Tower in New York City, Salesforce Tower in San Francisco, CA and 100 Federal Street and Atlantic Wharf Office Building in Boston, MA. For additional information, refer to page 10.	
(2)	For additional information, refer to page 13.	
(3)	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.	
(4)	Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. Non Same Properties include dispositions that occurred prior to September 30, 2016 and therefore are no longer a part of the Company’s property portfolio.	
(5)	For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.	
(6)	For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.	
(7)	During the three months ended September 30, 2016, approximately 13% of 601 Lexington Avenue complex was removed from the in-service portfolio as part of a planned redevelopment. As a result, the partners’s share of NOI—cash basis for the three months ended September 30, 2015, related to the planned redevelopment at 601 Lexington Avenue, is included in NOI—cash basis from non Same Properties from Partners’ share of consolidated joint ventures.	
 
22

THIRD QUARTER 2016
 
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-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	 	30-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	
Rental Revenue	 	$	580,778	  	 	$	585,352	  	 	 	 	 	 	 	 	 	 	$	16,726	  	 	$	16,730	  	 	 	 	 	 	 	 	 	
Less: Lease termination fees	 	 	836	  	 	 	10,133	  	 	 	 	 	 	 	 	 	 	 	—  	  	 	 	—  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees) (2)	 	 	579,942	  	 	 	575,219	  	 	$	4,723	  	 	 	0.8	% 	 	 	16,726	  	 	 	16,730	  	 	$	(4	) 	 	 	(0.0	)% 	
Less: Operating expenses and real estate taxes	 	 	218,906	  	 	 	211,390	  	 	 	7,516	  	 	 	3.6	% 	 	 	9,718	  	 	 	9,659	  	 	 	59	  	 	 	0.6	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) (3)	 	$	361,036	  	 	$	363,829	  	 	$	(2,793	) 	 	 	(0.8	)% 	 	$	7,008	  	 	$	7,071	  	 	$	(63	) 	 	 	(0.9	)% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees)	 	$	579,942	  	 	$	575,219	  	 	 	 	 	 	 	 	 	 	$	16,726	  	 	$	16,730	  	 	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	 	 	15,160	  	 	 	21,946	  	 	 	(6,786	) 	 	 	(30.9	)% 	 	 	15	  	 	 	20	  	 	 	(5	) 	 	 	(25.0	)% 	
Add: Lease transaction costs that qualify as rent inducements (4)	 	 	694	  	 	 	1,369	  	 	 	(675	) 	 	 	(49.3	)% 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	565,476	  	 	 	554,642	  	 	 	10,834	  	 	 	2.0	% 	 	 	16,711	  	 	 	16,710	  	 	 	1	  	 	 	0.0	% 	
Less: Operating expenses and real estate taxes	 	 	218,906	  	 	 	211,390	  	 	 	7,516	  	 	 	3.6	% 	 	 	9,718	  	 	 	9,659	  	 	 	59	  	 	 	0.6	% 	
Add: Straight-line ground rent expense (5)	 	 	1,031	  	 	 	891	  	 	 	140	  	 	 	15.7	% 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) - cash basis	 	$	347,601	  	 	$	344,143	  	 	$	3,458	  	 	 	1.0	% 	 	$	6,993	  	 	$	7,051	  	 	$	(58	) 	 	 	(0.8	)% 	

 	 	Consolidated Total (1)	 	 	Unconsolidated Joint Ventures (BXP’s Share)	 	
 	 	For the three months ended	 	 	 	 	 	 	 	 	For the three months ended	 	 	 	 	 	 	 	
 	 	30-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	 	30-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	
Rental Revenue	 	$	597,504	  	 	$	602,082	  	 	 	 	 	 	 	 	 	 	$	17,720	  	 	$	18,563	  	 	 	 	 	 	 	 	 	
Less: Lease termination fees	 	 	836	  	 	 	10,133	  	 	 	 	 	 	 	 	 	 	 	8	  	 	 	—  	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees) (2)	 	 	596,668	  	 	 	591,949	  	 	$	4,719	  	 	 	0.8	% 	 	 	17,712	  	 	 	18,563	  	 	$	(851	) 	 	 	(4.6	)% 	
Less: Operating expenses and real estate taxes	 	 	228,624	  	 	 	221,049	  	 	 	7,575	  	 	 	3.4	% 	 	 	8,146	  	 	 	7,831	  	 	 	315	  	 	 	4.0	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) (3)	 	$	368,044	  	 	$	370,900	  	 	$	(2,856	) 	 	 	(0.8	)% 	 	$	9,566	  	 	$	10,732	  	 	$	(1,166	) 	 	 	(10.9	)% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees)	 	$	596,668	  	 	$	591,949	  	 	 	 	 	 	 	 	 	 	$	17,712	  	 	$	18,563	  	 	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	 	 	15,175	  	 	 	21,966	  	 	 	(6,791	) 	 	 	(30.9	)% 	 	 	1,858	  	 	 	633	  	 	 	1,225	  	 	 	193.5	% 	
Add: Lease transaction costs that qualify as rent inducements (4)	 	 	694	  	 	 	1,369	  	 	 	(675	) 	 	 	(49.3	)% 	 	 	15	  	 	 	147	  	 	 	(132	) 	 	 	(89.8	)% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	582,187	  	 	 	571,352	  	 	 	10,835	  	 	 	1.9	% 	 	 	15,869	  	 	 	18,077	  	 	 	(2,208	) 	 	 	(12.2	)% 	
Less: Operating expenses and real estate taxes	 	 	228,624	  	 	 	221,049	  	 	 	7,575	  	 	 	3.4	% 	 	 	8,146	  	 	 	7,831	  	 	 	315	  	 	 	4.0	% 	
Add: Straight-line ground rent expense (5)	 	 	1,031	  	 	 	891	  	 	 	140	  	 	 	15.7	% 	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) - cash basis	 	$	354,594	(6) 	 	$	351,194	(6) 	 	$	3,400	  	 	 	1.0	% 	 	$	7,723	  	 	$	10,246	  	 	$	(2,523	) 	 	 	(24.6	)% 	

 	 	Combined	 	 	BXP’s Share of Combined (7)	 	
 	 	For the three months ended	 	 	 	 	 	 	 	 	For the three months ended	 	 	 	 	 	 	 	
 	 	30-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	 	30-Sep-16	 	 	30-Sep-15	 	 	$ Change	 	 	% Change	 	
Rental Revenue	 	$	615,224	  	 	$	620,645	  	 	 	 	 	 	 	 	 	 	$	545,881	  	 	$	544,508	  	 	 	 	 	 	 	 	 	
Less: Lease termination fees	 	 	844	  	 	 	10,133	  	 	 	 	 	 	 	 	 	 	 	812	  	 	 	8,549	  	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees) (2)	 	 	614,380	  	 	 	610,512	  	 	$	3,868	  	 	 	0.6	% 	 	 	545,069	  	 	 	535,959	  	 	$	9,110	  	 	 	1.7	% 	
Less: Operating expenses and real estate taxes	 	 	236,770	  	 	 	228,880	  	 	 	7,890	  	 	 	3.4	% 	 	 	210,611	  	 	 	202,625	  	 	 	7,986	  	 	 	3.9	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) (3)	 	$	377,610	  	 	$	381,632	  	 	$	(4,022	) 	 	 	(1.1	)% 	 	$	334,458	  	 	$	333,334	  	 	$	1,124	  	 	 	0.3	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue (excluding lease termination fees)	 	$	614,380	  	 	$	610,512	  	 	 	 	 	 	 	 	 	 	$	545,069	  	 	$	535,959	  	 	 	 	 	 	 	 	 	
Less: Straight-line rent and fair value lease revenue	 	 	17,033	  	 	$	22,599	  	 	 	(5,566	) 	 	 	(24.6	)% 	 	 	14,013	  	 	 	16,494	  	 	 	(2,481	) 	 	 	(15.0	)% 	
Add: Lease transaction costs that qualify as rent inducements (4)	 	 	709	  	 	$	1,516	  	 	 	(807	) 	 	 	(53.2	)% 	 	 	709	  	 	 	1,103	  	 	 	(394	) 	 	 	(35.7	)% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Subtotal	 	 	598,056	  	 	$	589,429	  	 	 	8,627	  	 	 	1.5	% 	 	 	531,765	  	 	 	520,568	  	 	 	11,197	  	 	 	2.2	% 	
Less: Operating expenses and real estate taxes	 	 	236,770	  	 	$	228,880	  	 	 	7,890	  	 	 	3.4	% 	 	 	210,611	  	 	 	202,625	  	 	 	7,986	  	 	 	3.9	% 	
Add: Straight-line ground rent expense (5)	 	 	1,031	  	 	$	891	  	 	 	140	  	 	 	15.7	% 	 	 	1,031	  	 	 	890	  	 	 	141	  	 	 	15.8	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
NOI (excluding lease termination fees) - cash basis (6)	 	$	362,317	  	 	$	361,440	  	 	$	877	  	 	 	0.2	% 	 	$	322,185	  	 	$	318,833	  	 	$	3,352	  	 	 	1.1	% 	

(1)	Includes 100% share of consolidated joint ventures. Same Property consolidated joint venture properties includes Fountain Square in Reston, VA, of which the Company acquired the remaining 50% interest on September 15, 2015, 767 Fifth Avenue (The GM Building), 601 Lexington Avenue (excluding the low-rise portion that is under redevelopment) and Times Square Tower in New York City and 100 Federal Street and Atlantic Wharf Office Building in Boston, MA.	
(2)	Rental Revenue (excluding lease termination fees) 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 lease termination fees, 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 lease termination fees), 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)	For additional information, see page 13.	
(6)	For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to NOI (excluding lease termination fees)—cash basis, see page 22. For disclosures relating to the Company’s use of NOI, see page 48.	
(7)	See page 20 for the partners’ share of each line item.	
 
23

THIRD QUARTER 2016
 
RESIDENTIAL and HOTEL PERFORMANCE
Rental Rates and Occupancy

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Third Quarter	 	 	Percent	 	 	YTD	 	 	Percent	 	
 	  	2016	 	 	2015	 	 	Change	 	 	2016	 	 	2015	 	 	Change	 	
The Avant at Reston Town Center (359 units)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reston, VA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Monthly Rental Rate (1)	  	$	2,429	  	 	$	2,264	  	 	 	7.3	% 	 	$	2,375	  	 	$	2,257	  	 	 	5.2	% 	
Average Rental Rate Per Occupied Square Foot (1)	  	$	2.68	  	 	$	2.45	  	 	 	9.4	% 	 	$	2.61	  	 	$	2.44	  	 	 	7.0	% 	
Average Physical Occupancy (1) (2)	  	 	95.6	% 	 	 	94.4	% 	 	 	1.3	% 	 	 	94.2	% 	 	 	89.5	% 	 	 	5.3	% 	
Average Economic Occupancy (2)	  	 	95.6	% 	 	 	93.9	% 	 	 	1.8	% 	 	 	94.1	% 	 	 	87.6	% 	 	 	7.4	% 	
The Lofts at Atlantic Wharf (86 units)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston, MA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Monthly Rental Rate (3)	  	$	4,146	  	 	$	4,054	  	 	 	2.3	% 	 	$	4,150	  	 	$	4,027	  	 	 	3.1	% 	
Average Rental Rate Per Occupied Square Foot (3)	  	$	4.63	  	 	$	4.53	  	 	 	2.2	% 	 	$	4.59	  	 	$	4.49	  	 	 	2.2	% 	
Average Physical Occupancy (2) (3)	  	 	97.3	% 	 	 	95.4	% 	 	 	2.0	% 	 	 	96.3	% 	 	 	96.8	% 	 	 	(0.5	)% 	
Average Economic Occupancy (2)	  	 	97.7	% 	 	 	97.1	% 	 	 	0.6	% 	 	 	97.3	% 	 	 	97.6	% 	 	 	(0.3	)% 	
Boston Marriott Cambridge (433 rooms)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cambridge, MA	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Average Occupancy	  	 	87.2	% 	 	 	86.8	% 	 	 	0.5	% 	 	 	82.2	% 	 	 	84.1	% 	 	 	(2.3	)% 	
Average Daily Rate	  	$	279.03	  	 	$	288.43	  	 	 	(3.3	)% 	 	$	269.10	  	 	$	271.88	  	 	 	(1.0	)% 	
Revenue per available room	  	$	243.19	  	 	$	250.41	  	 	 	(2.9	)% 	 	$	221.28	  	 	$	294.63	  	 	 	(24.9	)% 	
Net Operating Income (dollars in thousands) (4)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Residential	 	 	Hotel	 	
 	  	Third Quarter	 	 	Percent	 	 	Third Quarter	 	  	Percent	 	
 	  	2016	 	 	2015	 	 	Change	 	 	2016	 	  	2015	 	  	Change	 	
Rental Revenue	  	$	4,372	(5) 	 	$	4,111	(5) 	 	 	6.3	% 	 	$	12,354	  	  	$	12,619	  	  	 	(2.1	)% 	
Less: Operating expenses and real estate taxes	  	 	2,223	(6) 	 	 	1,534	  	 	 	44.9	% 	 	 	8,118	  	  	 	8,125	  	  	 	(0.1	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Net Operating Income	  	$	2,149	(5) 	 	$	2,577	(5) 	 	 	(16.6	)% 	 	$	4,236	  	  	$	4,494	  	  	 	(5.7	)% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Rental Revenue	  	$	4,372	(5) 	 	$	4,111	(5) 	 	 	 	 	 	$	12,354	  	  	$	12,619	  	  	 	 	 	
Less: Straight-line rent and fair value lease revenue	  	 	14	  	 	 	19	  	 	 	(26.3	)% 	 	 	1	  	  	 	1	  	  	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Subtotal	  	 	4,358	  	 	 	4,092	  	 	 	6.5	% 	 	 	12,353	  	  	 	12,618	  	  	 	(2.1	)% 	
Less: Operating expenses and real estate taxes	  	 	2,223	(6) 	 	 	1,534	  	 	 	44.9	% 	 	 	8,118	  	  	 	8,125	  	  	 	(0.1	)% 	
Add: Straight-line ground rent expense	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Net Operating Income - cash basis	  	$	2,135	(5) 	 	$	2,558	(5) 	 	 	(16.5	)% 	 	$	4,235	  	  	$	4,493	  	  	 	(5.7	)% 	

 
(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 and Average Economic Occupancy, see page 47.	
(3)	Excludes 9,617 square feet of retail space which is 100% leased.	
(4)	For disclosures related to the Company’s definition of Net Operating Income, see page 48.	
(5)	Includes 35,796 square feet of retail space, which had revenue of approximately $672 and $618 for the three months ended September 30, 2016 and September 30, 2015, respectively.	
(6)	Includes approximately $623 of demolition costs related to the Cambridge Residential / 88 Ames Street development project.	
 
24

THIRD QUARTER 2016
 
HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS and LEASING COMMISSIONS
(dollars in thousands, except PSF amounts)
Historical Capital Expenditures

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Q3 2016	 	 	Q2 2016	 	 	Q1 2016	 	 	2015	 	 	2014	 	 	2013	 	
Maintenance capital expenditures	  	$	11,889	  	 	$	9,654	  	 	$	21,961	  	 	$	56,383	  	 	$	45,618	  	 	$	48,353	  	
Partners’ share of maintenance capital expenditures from consolidated joint ventures	  	 	(377	) 	 	 	(422	) 	 	 	(573	) 	 	 	(5,565	) 	 	 	(4,377	) 	 	 	(766	) 	
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures	  	 	283	  	 	 	112	  	 	 	197	  	 	 	1,653	  	 	 	1,369	  	 	 	3,439	  	
Hotel improvements, equipment upgrades and replacements	  	 	2,137	  	 	 	434	  	 	 	360	  	 	 	2,430	  	 	 	2,894	  	 	 	2,070	  	
Planned capital expenditures associated with acquisition properties	  	 	—  	  	 	 	—  	  	 	 	87	  	 	 	6,914	  	 	 	14,652	  	 	 	21,041	  	
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(845	) 	 	 	(1,565	) 	 	 	(535	) 	
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated joint ventures	  	 	92	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	0	  	
Repositioning capital expenditures	  	 	7,932	(1) 	 	 	12,461	(1) 	 	 	13,007	(1) 	 	 	9,744	  	 	 	—  	  	 	 	—  	  	
Partners’ share of repositioning capital expenditures from consolidated joint ventures	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
BXP’s share of repositioning capital expenditures from unconsolidated joint ventures	  	 	216	(2) 	 	 	14	(2) 	 	 	8	(2) 	 	 	76	  	 	 	—  	  	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	$	22,172	  	 	$	22,253	  	 	$	35,047	  	 	$	70,790	  	 	$	58,591	  	 	$	73,602	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
2nd Generation Tenant Improvements and Leasing Commissions (3)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Q3 2016	 	  	Q2 2016	 	  	Q1 2016	 	  	2015	 	  	2014	 	  	2013	 	
Square feet	  	 	1,177,378	  	  	 	1,304,751	  	  	 	1,376,563	  	  	 	5,204,123	  	  	 	3,936,046	  	  	 	3,610,088	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Tenant improvements and lease commissions PSF	  	$	59.26	  	  	$	70.13	  	  	$	48.87	  	  	$	45.40	  	  	$	29.60	  	  	$	36.99	  	

(1)	Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at 1330 Connecticut Avenue in Washington, DC, Prudential Center Retail Improvements in Boston, MA, and 399 Park Avenue in New York City.	
(2)	Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at Metropolitan Square in Washington, DC.	
(3)	Includes 100% of unconsolidated joint ventures.	
 
25

THIRD QUARTER 2016
 
PORTFOLIO OVERVIEW
for the three months ended September 30, 2016
(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	  	 	12,789,730	  	 	 	869,227	  	 	 	77,480	  	 	 	330,000	  	 	 	14,066,437	  	
New York	  	 	11,184,690	  	 	 	339,936	  	 	 	—  	  	 	 	—  	  	 	 	11,524,626	  	
San Francisco and Los Angeles	  	 	6,847,982	  	 	 	348,946	  	 	 	—  	  	 	 	—  	  	 	 	7,196,928	  	
Washington, DC	  	 	9,898,661	  	 	 	689,563	  	 	 	329,168	  	 	 	—  	  	 	 	10,917,392	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	40,721,063	  	 	 	2,247,672	  	 	 	406,648	  	 	 	330,000	  	 	 	43,705,383	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
% of Total	  	 	93.2	% 	 	 	5.1	% 	 	 	0.9	% 	 	 	0.8	% 	 	 	100.0	% 	
Rentable Square Footage and Rental Revenue of In-Service Properties by Unit Type (1)(2)(3)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	 	 	 	Partners’ Share	 	 	BXP’s Share of	 	  	 	 	  	 	 	
 	  	 	 	  	 	 	 	of Revenue from	 	 	Revenue from	 	  	 	 	  	 	 	
 	  	 	 	  	Consolidated	 	 	Consolidated	 	 	Unconsolidated	 	  	 	 	  	 	 	
Unit Type	  	Square Feet	 	  	Revenue	 	 	Joint Ventures (4)	 	 	Joint Ventures (5)	 	  	Total	 	  	% of Total	 	
Office	  	 	40,721,063	  	  	$	451,606	  	 	$	(51,036	) 	 	$	18,862	  	  	$	419,432	  	  	 	85.4	% 	
Retail	  	 	2,247,672	  	  	 	34,244	  	 	 	(5,067	) 	 	 	909	  	  	 	30,086	  	  	 	6.1	% 	
Residential	  	 	406,648	  	  	 	3,529	  	 	 	—  	  	 	 	—  	  	  	 	3,529	  	  	 	0.7	% 	
Hotel	  	 	330,000	  	  	 	12,262	(6) 	 	 	—  	  	 	 	—  	  	  	 	12,262	  	  	 	2.5	% 	
Parking and other	  	 	N/A	  	  	 	24,638	(7) 	 	 	(887	) 	 	 	2,269	  	  	 	26,020	  	  	 	5.3	% 	
 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Total	  	 	43,705,383	  	  	$	526,279	  	 	$	(56,990	) 	 	$	22,040	  	  	$	491,329	  	  	 	100.0	% 	
 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Rentable Square Footage of In-Service Same Properties by Unit Type (1)(2)(8)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Properties	  	Office	 	 	Retail	 	 	Residential	 	 	Hotel	 	 	Total	 	
Square Feet	  	 	38,039,279	  	 	 	2,141,520	  	 	 	406,648	  	 	 	330,000	  	 	 	40,917,447	  	
% of Properties In-Service	  	 	93.4	% 	 	 	95.3	% 	 	 	100.0	% 	 	 	100.0	% 	 	 	93.6	% 	
Percentage of BXP’s Share of Combined Net Operating Income (excluding lease termination fees) by Location and Type of Property (1) (9)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Geographic Area	  	Office	 	 	Residential	 	 	Hotel	 	 	Total	 	
Boston	  	 	29.3	% 	 	 	0.2	% 	 	 	1.2	% 	 	 	30.7	% 	
New York	  	 	31.2	% 	 	 	—  	  	 	 	—  	  	 	 	31.2	% 	
San Francisco and Los Angeles	  	 	16.5	% 	 	 	—  	  	 	 	—  	  	 	 	16.5	% 	
Washington, DC	  	 	21.0	% 	 	 	0.6	% 	 	 	—  	  	 	 	21.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	98.0	% 	 	 	0.8	% 	 	 	1.2	% 	 	 	100.0	% 	

Geographic Area	  	 	 	 	CBD	 	 	Suburban	 	 	Total	 	
Boston	  	 	 	 	 	 	24.1	% 	 	 	6.6	% 	 	 	30.7	% 	
New York	  	 	 	 	 	 	28.7	% 	 	 	2.5	% 	 	 	31.2	% 	
San Francisco and Los Angeles	  	 	 	 	 	 	13.2	% 	 	 	3.3	% 	 	 	16.5	% 	
Washington, DC	  	 	 	 	 	 	9.4	% 	 	 	12.2	% 	 	 	21.6	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total	  	 	 	 	 	 	75.4	% 	 	 	24.6	% 	 	 	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)	Excludes recoveries from tenants.	
(4)	For additional information, see page 20.	
(5)	Represents the Company’s share. For additional information, see page 18.	
(6)	Excludes approximately $67 of base rent from retail tenants which is included in Retail above and approximately $25 of recoveries from tenants.	
(7)	Includes approximately $1,700 of other income.	
(8)	Pages 27-29 indicate by footnote the properties which are not included as part of Same Properties.	
(9)	BXP’s Share of Combined Net Operating Income (NOI) (excluding lease termination fees) 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 Combined NOI (excluding lease termination fees), see page 21. For disclosures relating to the Company’s use of BXP’s Share of Combined NOI (excluding lease termination fees), see pages 47-48.	
 
26

THIRD QUARTER 2016
 
IN-SERVICE PROPERTY LISTING
as of September 30, 2016

 	  	 	  	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	  	  	 	1,746,151	  	  	 	80.2	% 	 	$	63.94	  	  	 	N	  	  	 	CBD	  	
 	  	100 Federal Street (55% ownership)	  	CBD Boston MA	  	 	1	  	  	 	1,273,968	  	  	 	85.8	% 	 	 	51.57	  	  	 	N	  	  	 	CBD	  	
 	  	800 Boylston Street - The Prudential Center	  	CBD Boston MA	  	 	1	  	  	 	1,229,384	  	  	 	93.1	% 	 	 	59.87	  	  	 	N	  	  	 	CBD	  	
 	  	111 Huntington Avenue - The Prudential Center	  	CBD Boston MA	  	 	1	  	  	 	860,455	  	  	 	97.1	% 	 	 	63.30	  	  	 	N	  	  	 	CBD	  	
 	  	Atlantic Wharf Office (55% ownership)	  	CBD Boston MA	  	 	1	  	  	 	793,827	  	  	 	100.0	% 	 	 	67.94	  	  	 	N	  	  	 	CBD	  	
 	  	101 Huntington Avenue - The Prudential Center	  	CBD Boston MA	  	 	1	  	  	 	505,583	  	  	 	96.9	% 	 	 	48.07	  	  	 	N	  	  	 	CBD	  	
(3)	  	Prudential Center (retail shops)	  	CBD Boston MA	  	 	1	  	  	 	491,399	  	  	 	97.4	% 	 	 	81.61	  	  	 	N	  	  	 	CBD	  	
(3)	  	Star Market at the Prudential Center	  	CBD Boston MA	  	 	1	  	  	 	57,235	  	  	 	100.0	% 	 	 	54.37	  	  	 	N	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	8	  	  	 	6,958,002	  	  	 	90.4	% 	 	$	61.51	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	355 Main Street	  	East Cambridge MA	  	 	1	  	  	 	265,342	  	  	 	99.7	% 	 	$	69.98	  	  	 	N	  	  	 	CBD	  	
 	  	90 Broadway	  	East Cambridge MA	  	 	1	  	  	 	223,771	  	  	 	100.0	% 	 	 	51.40	  	  	 	N	  	  	 	CBD	  	
 	  	255 Main Street	  	East Cambridge MA	  	 	1	  	  	 	215,629	  	  	 	100.0	% 	 	 	55.53	  	  	 	N	  	  	 	CBD	  	
 	  	300 Binney Street	  	East Cambridge MA	  	 	1	  	  	 	195,191	  	  	 	100.0	% 	 	 	53.49	  	  	 	N	  	  	 	CBD	  	
 	  	150 Broadway	  	East Cambridge MA	  	 	1	  	  	 	177,226	  	  	 	100.0	% 	 	 	47.07	  	  	 	N	  	  	 	CBD	  	
 	  	105 Broadway	  	East Cambridge MA	  	 	1	  	  	 	152,664	  	  	 	100.0	% 	 	 	60.71	  	  	 	N	  	  	 	CBD	  	
 	  	325 Main Street	  	East Cambridge MA	  	 	1	  	  	 	115,361	  	  	 	100.0	% 	 	 	46.89	  	  	 	N	  	  	 	CBD	  	
 	  	145 Broadway	  	East Cambridge MA	  	 	1	  	  	 	79,616	  	  	 	100.0	% 	 	 	46.38	  	  	 	N	  	  	 	CBD	  	
 	  	250 Binney Street	  	East Cambridge MA	  	 	1	  	  	 	67,362	  	  	 	100.0	% 	 	 	42.75	  	  	 	N	  	  	 	CBD	  	
 	  	University Place	  	Mid-Cambridge MA	  	 	1	  	  	 	195,282	  	  	 	100.0	% 	 	 	47.26	  	  	 	Y	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	10	  	  	 	1,687,444	  	  	 	99.9	% 	 	$	54.11	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Bay Colony Corporate Center	  	Route 128 Mass Turnpike MA	  	 	4	  	  	 	1,010,113	  	  	 	78.4	% 	 	$	35.61	  	  	 	N	  	  	 	S	  	
 	  	Reservoir Place	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	528,885	  	  	 	98.3	% 	 	 	33.40	  	  	 	N	  	  	 	S	  	
 	  	140 Kendrick Street	  	Route 128 Mass Turnpike MA	  	 	3	  	  	 	380,987	  	  	 	84.2	% 	 	 	37.22	  	  	 	N	  	  	 	S	  	
 	  	Weston Corporate Center	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	356,995	  	  	 	100.0	% 	 	 	52.18	  	  	 	N	  	  	 	S	  	
 	  	Waltham Weston Corporate Center	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	306,687	  	  	 	92.4	% 	 	 	34.65	  	  	 	N	  	  	 	S	  	
 	  	230 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	301,429	  	  	 	84.9	% 	 	 	34.37	  	  	 	N	  	  	 	S	  	
 	  	200 West Street	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	256,245	  	  	 	97.8	% 	 	 	36.84	  	  	 	N	  	  	 	S	  	
(4)	  	10 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	241,460	  	  	 	92.7	% 	 	 	51.29	  	  	 	N	  	  	 	S	  	
 	  	77 CityPoint	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	209,707	  	  	 	100.0	% 	 	 	47.55	  	  	 	N	  	  	 	S	  	
 	  	195 West Street	  	Route 128 Mass Turnpike MA	  	 	1	  	  	 	63,500	  	  	 	100.0	% 	 	 	40.82	  	  	 	N	  	  	 	S	  	
 	  	Quorum Office Park	  	Route 128 Northwest MA	  	 	2	  	  	 	267,527	  	  	 	90.0	% 	 	 	18.92	  	  	 	N	  	  	 	S	  	
 	  	Lexington Office Park	  	Route 128 Northwest MA	  	 	2	  	  	 	166,858	  	  	 	73.8	% 	 	 	26.29	  	  	 	N	  	  	 	S	  	
 	  	191 Spring Street	  	Route 128 Northwest MA	  	 	1	  	  	 	158,900	  	  	 	7.2	% 	 	 	26.41	  	  	 	N	  	  	 	S	  	
 	  	40 Shattuck Road	  	Route 128 Northwest MA	  	 	1	  	  	 	121,542	  	  	 	68.7	% 	 	 	23.08	  	  	 	N	  	  	 	S	  	
 	  	91 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	  	  	 	119,216	  	  	 	100.0	% 	 	 	27.47	  	  	 	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	% 	 	 	43.89	  	  	 	N	  	  	 	S	  	
 	  	32 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	  	  	 	69,154	  	  	 	100.0	% 	 	 	24.48	  	  	 	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	% 	 	 	41.17	  	  	 	N	  	  	 	S	  	
 	  	181 Spring Street	  	Route 128 Northwest MA	  	 	1	  	  	 	55,793	  	  	 	100.0	% 	 	 	31.40	  	  	 	N	  	  	 	S	  	
 	  	92 Hayden Avenue	  	Route 128 Northwest MA	  	 	1	  	  	 	31,100	  	  	 	100.0	% 	 	 	41.80	  	  	 	N	  	  	 	S	  	
 	  	17 Hartwell Avenue	  	Route 128 Northwest MA	  	 	1	  	  	 	30,000	  	  	 	100.0	% 	 	 	33.26	  	  	 	N	  	  	 	S	  	
(3)(4)	  	The Point	  	Route 128 Northwest MA	  	 	1	  	  	 	16,300	  	  	 	84.7	% 	 	 	52.27	  	  	 	N	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	31	  	  	 	4,999,634	  	  	 	85.9	% 	 	$	36.69	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	Total Boston Office:	  	 	49	  	  	 	13,645,080	  	  	 	90.0	% 	 	$	51.74	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
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:	  	 	51	  	  	 	14,066,437	  	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	

(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.	
 
27

THIRD QUARTER 2016
 
IN-SERVICE PROPERTY LISTING (continued)
as of September 30, 2016

 	  	 	  	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	  	  	 	1,839,505	  	  	 	94.5	% 	 	$	146.53	  	  	 	Y	  	  	 	CBD	  	
 	  	399 Park Avenue	  	Park Avenue NY	  	 	1	  	  	 	1,712,880	  	  	 	93.9	% 	 	 	90.49	  	  	 	N	  	  	 	CBD	  	
(3)	  	601 Lexington Avenue (55% ownership)	  	Park Avenue NY	  	 	1	  	  	 	1,436,241	  	  	 	93.8	% 	 	 	95.73	  	  	 	Y	  	  	 	CBD	  	
 	  	599 Lexington Avenue	  	Park Avenue NY	  	 	1	  	  	 	1,058,008	  	  	 	96.0	% 	 	 	87.46	  	  	 	N	  	  	 	CBD	  	
 	  	Times Square Tower (55% ownership)	  	Times Square NY	  	 	1	  	  	 	1,248,521	  	  	 	98.6	% 	 	 	77.92	  	  	 	N	  	  	 	CBD	  	
 	  	250 West 55th Street	  	Times Square / West Side NY	  	 	1	  	  	 	988,326	  	  	 	85.2	% 	 	 	86.03	  	  	 	N	  	  	 	CBD	  	
 	  	510 Madison Avenue	  	Fifth/Madison Avenue NY	  	 	1	  	  	 	355,598	  	  	 	100.0	% 	 	 	120.26	  	  	 	N	  	  	 	CBD	  	
(4)	  	540 Madison Avenue (60% ownership)	  	Fifth/Madison Avenue NY	  	 	1	  	  	 	283,695	  	  	 	92.4	% 	 	 	101.50	  	  	 	Y	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	8	  	  	 	8,922,774	  	  	 	94.2	% 	 	$	101.89	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	One Tower Center	  	East Brunswick NJ	  	 	1	  	  	 	412,797	  	  	 	21.2	% 	 	$	31.57	  	  	 	N	  	  	 	S	  	
 	  	510 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	234,160	  	  	 	100.0	% 	 	 	34.74	  	  	 	N	  	  	 	S	  	
 	  	210 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	162,372	  	  	 	79.3	% 	 	 	33.38	  	  	 	N	  	  	 	S	  	
 	  	206 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	161,763	  	  	 	100.0	% 	 	 	31.87	  	  	 	N	  	  	 	S	  	
 	  	212 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	151,547	  	  	 	86.9	% 	 	 	36.27	  	  	 	N	  	  	 	S	  	
 	  	214 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	150,774	  	  	 	67.6	% 	 	 	33.53	  	  	 	N	  	  	 	S	  	
 	  	506 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	149,312	  	  	 	59.0	% 	 	 	34.60	  	  	 	N	  	  	 	S	  	
 	  	508 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	134,433	  	  	 	100.0	% 	 	 	33.17	  	  	 	N	  	  	 	S	  	
 	  	202 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	134,381	  	  	 	86.3	% 	 	 	37.80	  	  	 	N	  	  	 	S	  	
(5)	  	804 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	130,000	  	  	 	100.0	% 	 	 	36.25	  	  	 	N	  	  	 	S	  	
 	  	101 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	125,627	  	  	 	90.8	% 	 	 	34.01	  	  	 	N	  	  	 	S	  	
 	  	504 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	121,990	  	  	 	100.0	% 	 	 	30.83	  	  	 	N	  	  	 	S	  	
 	  	502 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	121,460	  	  	 	91.3	% 	 	 	36.75	  	  	 	N	  	  	 	S	  	
 	  	701 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	120,000	  	  	 	100.0	% 	 	 	39.28	  	  	 	N	  	  	 	S	  	
 	  	104 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	102,830	  	  	 	40.3	% 	 	 	34.97	  	  	 	N	  	  	 	S	  	
 	  	105 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	69,955	  	  	 	56.3	% 	 	 	32.53	  	  	 	N	  	  	 	S	  	
 	  	302 Carnegie Center	  	Princeton NJ	  	 	1	  	  	 	64,926	  	  	 	100.0	% 	 	 	34.36	  	  	 	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	% 	 	 	33.33	  	  	 	N	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	18	  	  	 	2,601,852	  	  	 	76.1	% 	 	$	34.50	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	Total New York:	  	 	26	  	  	 	11,524,626	  	  	 	90.1	% 	 	$	89.03	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
San Francisco and Los Angeles	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
Office	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	Embarcadero Center Four	  	CBD San Francisco CA	  	 	1	  	  	 	937,954	  	  	 	86.2	% 	 	$	64.77	  	  	 	N	  	  	 	CBD	  	
 	  	Embarcadero Center One	  	CBD San Francisco CA	  	 	1	  	  	 	831,078	  	  	 	97.6	% 	 	 	56.21	  	  	 	N	  	  	 	CBD	  	
 	  	Embarcadero Center Two	  	CBD San Francisco CA	  	 	1	  	  	 	786,709	  	  	 	93.8	% 	 	 	64.43	  	  	 	N	  	  	 	CBD	  	
 	  	Embarcadero Center Three	  	CBD San Francisco CA	  	 	1	  	  	 	779,318	  	  	 	83.4	% 	 	 	54.99	  	  	 	N	  	  	 	CBD	  	
 	  	680 Folsom Street	  	CBD San Francisco CA	  	 	2	  	  	 	524,793	  	  	 	98.4	% 	 	 	58.65	  	  	 	N	  	  	 	CBD	  	
(5)	  	535 Mission Street	  	CBD San Francisco CA	  	 	1	  	  	 	307,235	  	  	 	100.0	% 	 	 	71.94	  	  	 	N	  	  	 	CBD	  	
(5)	  	690 Folsom Street	  	CBD San Francisco CA	  	 	1	  	  	 	26,080	  	  	 	100.0	% 	 	 	69.75	  	  	 	N	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	8	  	  	 	4,193,167	  	  	 	92.0	% 	 	$	61.02	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	601 and 651 Gateway	  	South San Francisco CA	  	 	2	  	  	 	506,279	  	  	 	99.6	% 	 	$	39.33	  	  	 	N	  	  	 	S	  	
 	  	611 Gateway	  	South San Francisco CA	  	 	1	  	  	 	260,337	  	  	 	28.2	% 	 	 	40.77	  	  	 	N	  	  	 	S	  	
 	  	Mountain View Research Park	  	Mountain View CA	  	 	15	  	  	 	540,433	  	  	 	100.0	% 	 	 	41.15	  	  	 	N	  	  	 	S	  	
 	  	2440 West El Camino Real	  	Mountain View CA	  	 	1	  	  	 	141,392	  	  	 	100.0	% 	 	 	57.46	  	  	 	N	  	  	 	S	  	
 	  	453 Ravendale Drive	  	Mountain View CA	  	 	1	  	  	 	29,620	  	  	 	85.8	% 	 	 	36.68	  	  	 	N	  	  	 	S	  	
(5)(6)	  	3625-3635 Peterson Way	  	Santa Clara CA	  	 	1	  	  	 	218,366	  	  	 	100.0	% 	 	 	21.84	  	  	 	N	  	  	 	S	  	
(6)	  	North First Business Park	  	San Jose CA	  	 	5	  	  	 	190,636	  	  	 	100.0	% 	 	 	18.87	  	  	 	N	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	26	  	  	 	1,887,063	  	  	 	89.8	% 	 	$	36.89	  	  	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
(4)(5)(7)	  	Colorado Center	  	West Los Angeles CA	  	 	6	  	  	 	1,116,698	  	  	 	65.5	% 	 	$	54.96	  	  	 	N	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	Total San Francisco and	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	  	 	 	 	
 	  	 	  	Los Angeles:	  	 	40	  	  	 	7,196,928	  	  	 	87.3	% 	 	$	53.81	  	  	 	 	 	  	 	 	 	

(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 this quarter. As a result the portion related to the planned redevelopment is not included in Same Property analysis.	
(4)	This is an unconsolidated joint venture property.	
(5)	Not included in Same Property analysis.	
(6)	Property held for redevelopment.	
(7)	Excludes approximately 59,000 square feet of storage space and 8,000 square feet of remeasurement upon lease expirations.	
 
28

THIRD QUARTER 2016
 
IN-SERVICE PROPERTY LISTING (continued)
as of September 30, 2016

 	  	 	  	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	  	  	 	98.6	% 	 	$	59.16	  	 	 	N	  	  	 	CBD	  	
 	  	500 E Street, S.W.	  	Southwest Washington DC	  	 	1	  	  	 	251,994	  	  	 	100.0	% 	 	 	49.52	  	 	 	N	  	  	 	CBD	  	
(3)	  	Metropolitan Square (51% ownership)	  	East End Washington DC	  	 	1	  	  	 	607,041	  	  	 	74.7	% 	 	 	61.10	  	 	 	Y	  	  	 	CBD	  	
(3)	  	901 New York Avenue (25% ownership)	  	East End Washington DC	  	 	1	  	  	 	539,680	  	  	 	92.4	% 	 	 	59.75	  	 	 	Y	  	  	 	CBD	  	
(4)	  	601 Massachusetts Avenue	  	East End Washington DC	  	 	1	  	  	 	478,883	  	  	 	90.2	% 	 	 	68.96	  	 	 	N	  	  	 	CBD	  	
(3)	  	Market Square North (50% ownership)	  	East End Washington DC	  	 	1	  	  	 	415,246	  	  	 	82.6	% 	 	 	62.83	  	 	 	Y	  	  	 	CBD	  	
 	  	2200 Pennsylvania Avenue	  	CBD Washington DC	  	 	1	  	  	 	458,831	  	  	 	100.0	% 	 	 	87.99	  	 	 	N	  	  	 	CBD	  	
 	  	1333 New Hampshire Avenue	  	CBD Washington DC	  	 	1	  	  	 	315,371	  	  	 	100.0	% 	 	 	47.27	  	 	 	N	  	  	 	CBD	  	
 	  	1330 Connecticut Avenue	  	CBD Washington DC	  	 	1	  	  	 	253,190	  	  	 	98.0	% 	 	 	61.00	  	 	 	N	  	  	 	CBD	  	
 	  	Sumner Square	  	CBD Washington DC	  	 	1	  	  	 	208,892	  	  	 	100.0	% 	 	 	50.54	  	 	 	N	  	  	 	CBD	  	
(3)	  	500 North Capitol Street, N.W. (30% ownership)	  	Capitol Hill Washington DC	  	 	1	  	  	 	230,860	  	  	 	100.0	% 	 	 	66.32	  	 	 	Y	  	  	 	CBD	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	11	  	  	 	4,391,017	  	  	 	92.5	% 	 	$	62.47	  	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	South of Market	  	Reston VA	  	 	3	  	  	 	623,666	  	  	 	93.6	% 	 	$	54.03	  	 	 	N	  	  	 	S	  	
 	  	Fountain Square	  	Reston VA	  	 	2	  	  	 	518,345	  	  	 	93.2	% 	 	 	47.69	  	 	 	N	  	  	 	S	  	
 	  	One Freedom Square	  	Reston VA	  	 	1	  	  	 	432,581	  	  	 	93.0	% 	 	 	47.64	  	 	 	N	  	  	 	S	  	
 	  	Two Freedom Square	  	Reston VA	  	 	1	  	  	 	421,757	  	  	 	98.5	% 	 	 	45.34	  	 	 	N	  	  	 	S	  	
 	  	One and Two Discovery Square	  	Reston VA	  	 	2	  	  	 	366,990	  	  	 	100.0	% 	 	 	44.58	  	 	 	N	  	  	 	S	  	
 	  	One Reston Overlook	  	Reston VA	  	 	1	  	  	 	319,519	  	  	 	100.0	% 	 	 	38.55	  	 	 	N	  	  	 	S	  	
 	  	Reston Corporate Center	  	Reston VA	  	 	2	  	  	 	261,046	  	  	 	100.0	% 	 	 	39.30	  	 	 	N	  	  	 	S	  	
 	  	Democracy Tower	  	Reston VA	  	 	1	  	  	 	259,441	  	  	 	100.0	% 	 	 	59.50	  	 	 	N	  	  	 	S	  	
(5)	  	Fountain Square Retail	  	Reston VA	  	 	1	  	  	 	237,209	  	  	 	96.5	% 	 	 	52.35	  	 	 	N	  	  	 	S	  	
 	  	Two Reston Overlook	  	Reston VA	  	 	1	  	  	 	134,615	  	  	 	97.1	% 	 	 	37.70	  	 	 	N	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	15	  	  	 	3,575,169	  	  	 	96.5	% 	 	$	47.48	  	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	Wisconsin Place Office	  	Montgomery County MD	  	 	1	  	  	 	299,186	  	  	 	96.5	% 	 	$	50.63	  	 	 	N	  	  	 	S	  	
 	  	2600 Tower Oaks Boulevard	  	Montgomery County MD	  	 	1	  	  	 	179,369	  	  	 	48.1	% 	 	 	32.79	  	 	 	N	  	  	 	S	  	
 	  	New Dominion Technology Park - Building Two	  	Herndon VA	  	 	1	  	  	 	257,400	  	  	 	100.0	% 	 	 	39.58	  	 	 	N	  	  	 	S	  	
 	  	New Dominion Technology Park - Building One	  	Herndon VA	  	 	1	  	  	 	235,201	  	  	 	100.0	% 	 	 	33.60	  	 	 	Y	  	  	 	S	  	
 	  	Kingstowne Two	  	Springfield VA	  	 	1	  	  	 	156,251	  	  	 	74.1	% 	 	 	40.97	  	 	 	N	  	  	 	S	  	
 	  	Kingstowne One	  	Springfield VA	  	 	1	  	  	 	151,483	  	  	 	75.6	% 	 	 	40.28	  	 	 	N	  	  	 	S	  	
 	  	7601 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	114,028	  	  	 	100.0	% 	 	 	18.60	  	 	 	N	  	  	 	S	  	
 	  	7435 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	103,557	  	  	 	100.0	% 	 	 	19.06	  	 	 	N	  	  	 	S	  	
 	  	8000 Grainger Court	  	Springfield VA	  	 	1	  	  	 	88,775	  	  	 	37.6	% 	 	 	23.64	  	 	 	N	  	  	 	S	  	
(5)	  	Kingstowne Retail	  	Springfield VA	  	 	1	  	  	 	88,288	  	  	 	100.0	% 	 	 	36.02	  	 	 	N	  	  	 	S	  	
 	  	7500 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	79,971	  	  	 	100.0	% 	 	 	19.66	  	 	 	N	  	  	 	S	  	
 	  	7501 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	75,756	  	  	 	100.0	% 	 	 	28.67	  	 	 	N	  	  	 	S	  	
 	  	7450 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	62,402	  	  	 	0.0	% 	 	 	—  	  	 	 	N	  	  	 	S	  	
 	  	7374 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	57,321	  	  	 	100.0	% 	 	 	17.90	  	 	 	N	  	  	 	S	  	
 	  	8000 Corporate Court	  	Springfield VA	  	 	1	  	  	 	52,539	  	  	 	100.0	% 	 	 	14.10	  	 	 	N	  	  	 	S	  	
 	  	7451 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	45,615	  	  	 	67.4	% 	 	 	26.08	  	 	 	N	  	  	 	S	  	
 	  	7300 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	32,000	  	  	 	100.0	% 	 	 	23.64	  	 	 	N	  	  	 	S	  	
 	  	7375 Boston Boulevard	  	Springfield VA	  	 	1	  	  	 	26,865	  	  	 	79.2	% 	 	 	28.70	  	 	 	N	  	  	 	S	  	
(3)(4)	  	Annapolis Junction Building Seven (50% ownership)	  	Anne Arundel County MD	  	 	1	  	  	 	127,229	  	  	 	100.0	% 	 	 	31.79	  	 	 	Y	  	  	 	S	  	
(3)(4)	  	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	  	  	 	48.9	% 	 	 	30.55	  	 	 	Y	  	  	 	S	  	
(3)	  	Annapolis Junction Building One (50% ownership)	  	Anne Arundel County MD	  	 	1	  	  	 	117,599	  	  	 	21.9	% 	 	 	113.09	  	 	 	Y	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	22	  	  	 	2,595,859	  	  	 	77.0	% 	 	$	34.72	  	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	Total Washington Office:	  	 	48	  	  	 	10,562,045	  	  	 	90.1	% 	 	$	51.20	  	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Residential	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	The Avant at Reston Town Center (359 units)	  	Reston VA	  	 	1	  	  	 	355,347	  	  	 	 	 	 	 	 	 	 	 	N	  	  	 	S	  	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	Total Washington Residential:	  	 	1	  	  	 	355,347	  	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	Total Washington, DC:	  	 	49	  	  	 	10,917,392	  	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
 	  	 	  	Total In-Service Properties:	  	 	166	  	  	 	43,705,383	  	  	 	89.6	%(6) 	 	$	62.02	(6) 	 	 	 	 	  	 	 	 	

(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)	Not included in Same Property analysis.	
(5)	This is a retail property.	
(6)	Excludes Hotel and Residential properties. For disclosures relating to the Company’s Hotel and Residential properties, see page 24.	
 
29

THIRD QUARTER 2016
 
OCCUPANCY BY LOCATION
Total In-Service Properties (1)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	CBD	 	 	Suburban	 	 	Total	 	
Location	  	30-Sep-16	 	 	30-Sep-15	 	 	30-Sep-16	 	 	30-Sep-15	 	 	30-Sep-16	 	 	30-Sep-15	 	
Boston	  	 	92.3	% 	 	 	91.2	% 	 	 	85.9	% 	 	 	90.8	% 	 	 	90.0	% 	 	 	91.1	% 	
New York	  	 	94.2	% 	 	 	96.2	% 	 	 	76.1	% 	 	 	73.9	% 	 	 	90.1	% 	 	 	91.5	% 	
San Francisco and Los Angeles	  	 	86.4	% 	 	 	94.4	% 	 	 	89.8	% 	 	 	78.5	% 	 	 	87.3	% 	 	 	88.6	% 	
Washington, DC	  	 	92.5	% 	 	 	93.7	% 	 	 	88.3	% 	 	 	92.4	% 	 	 	90.1	% 	 	 	92.9	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Portfolio	  	 	91.8	% 	 	 	93.9	% 	 	 	85.7	% 	 	 	87.0	% 	 	 	89.6	% 	 	 	91.3	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Same Property Portfolio (1) (2)

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	CBD	 	 	Suburban	 	 	Total	 	
Location	  	30-Sep-16	 	 	30-Sep-15	 	 	30-Sep-16	 	 	30-Sep-15	 	 	30-Sep-16	 	 	30-Sep-15	 	
Boston	  	 	92.3	% 	 	 	91.0	% 	 	 	85.6	% 	 	 	90.8	% 	 	 	89.9	% 	 	 	90.9	% 	
New York	  	 	94.2	% 	 	 	96.2	% 	 	 	74.9	% 	 	 	73.9	% 	 	 	90.0	% 	 	 	91.3	% 	
San Francisco and Los Angeles	  	 	91.3	% 	 	 	94.4	% 	 	 	88.4	% 	 	 	97.7	% 	 	 	90.4	% 	 	 	95.4	% 	
Washington, DC	  	 	92.8	% 	 	 	93.7	% 	 	 	89.9	% 	 	 	92.3	% 	 	 	91.1	% 	 	 	92.8	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Portfolio	  	 	92.9	% 	 	 	93.8	% 	 	 	85.9	% 	 	 	89.3	% 	 	 	90.3	% 	 	 	92.1	% 	

(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

THIRD QUARTER 2016
 
TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION
TOP 20 TENANTS (1)

 	 	 	 	 	 	 	
 	  	Tenant	  	% of BXP’s Share of
Combined
Annualized Rental
Obligations	 	
1.	  	US Government	  	 	2.75	% 	
2.	  	Citibank	  	 	2.51	% 	
3.	  	Arnold & Porter	  	 	2.19	% 	
4.	  	Biogen	  	 	2.01	% 	
5.	  	Shearman & Sterling	  	 	1.88	% 	
6.	  	Ropes & Gray	  	 	1.62	% 	
7.	  	Kirkland & Ellis	  	 	1.47	% 	
8.	  	O’Melveny & Myers	  	 	1.37	% 	
9.	  	Wellington Management	  	 	1.30	% 	
10.	  	Bank of America	  	 	1.27	% 	
11.	  	Google	  	 	1.08	% 	
12.	  	Weil Gotshal Manges	  	 	1.08	% 	
13.	  	Aramis (Estee Lauder)	  	 	1.03	% 	
14.	  	Kaye Scholer	  	 	0.97	% 	
15.	  	Microsoft	  	 	0.94	% 	
16.	  	Mass Financial Services	  	 	0.89	% 	
17.	  	Morgan Lewis Bockius	  	 	0.89	% 	
18.	  	Morrison Foerster	  	 	0.87	% 	
19.	  	Hunton & Williams	  	 	0.87	% 	
20.	  	Smithsonian Institution	  	 	0.81	% 	
 	  	 	  	 	 	 	
 	  	BXP’s Share of Combined Rental Obligations	  	 	27.80	% 	
 	  	 	  	 	 	 	
 	  	BXP’s Share of Combined Square Feet	  	 	22.90	% 	
NOTABLE SIGNED DEALS (2)

 	 	 	 	 	 	 	
Tenant	  	Property	  	Square Feet	 	
salesforce.com	  	Salesforce Tower	  	 	732,000	  	
Putnam Investments	  	100 Federal Street	  	 	249,000	  	
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

THIRD QUARTER 2016
 
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	 	
2016	 	 	505,444	  	 	$	23,099,549	  	 	$	45.70	  	 	$	23,104,069	  	 	$	45.71	  	 	 	1.31	%(4) 	
2017	 	 	2,473,358	  	 	 	144,153,854	  	 	 	58.28	  	 	 	146,241,435	  	 	 	59.13	  	 	 	6.39	% 	
2018	 	 	1,577,970	  	 	 	92,146,939	  	 	 	58.40	  	 	 	93,839,576	  	 	 	59.47	  	 	 	4.08	% 	
2019	 	 	3,484,863	  	 	 	182,917,736	  	 	 	52.49	  	 	 	187,768,836	  	 	 	53.88	  	 	 	9.00	% 	
2020	 	 	4,438,254	  	 	 	280,881,506	  	 	 	63.29	  	 	 	292,110,236	  	 	 	65.82	  	 	 	11.47	% 	
2021	 	 	3,389,711	  	 	 	171,834,706	  	 	 	50.69	  	 	 	186,086,092	  	 	 	54.90	  	 	 	8.76	% 	
2022	 	 	4,013,608	  	 	 	226,223,512	  	 	 	56.36	  	 	 	250,943,010	  	 	 	62.52	  	 	 	10.37	% 	
2023	 	 	1,430,451	  	 	 	78,763,385	  	 	 	55.06	  	 	 	90,923,475	  	 	 	63.56	  	 	 	3.70	% 	
2024	 	 	2,598,539	  	 	 	150,354,200	  	 	 	57.86	  	 	 	166,571,649	  	 	 	64.10	  	 	 	6.71	% 	
2025	 	 	2,315,731	  	 	 	135,423,138	  	 	 	58.48	  	 	 	155,684,974	  	 	 	67.23	  	 	 	5.98	% 	
Thereafter	 	 	9,837,553	  	 	 	701,754,463	  	 	 	71.33	  	 	 	893,329,360	  	 	 	90.81	  	 	 	25.41	% 	
 	 	
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	 	
2016	 	 	117,127	  	 	$	6,445,274	  	 	$	55.03	  	 	$	6,450,074	  	 	$	55.07	  	 	 	5.83	%(4) 	
2017	 	 	148,967	  	 	 	14,975,314	  	 	 	100.53	  	 	 	15,003,734	  	 	 	100.72	  	 	 	7.41	% 	
2018	 	 	234,020	  	 	 	21,316,981	  	 	 	91.09	  	 	 	21,949,618	  	 	 	93.79	  	 	 	11.64	% 	
2019	 	 	92,242	  	 	 	6,381,908	  	 	 	69.19	  	 	 	6,498,477	  	 	 	70.45	  	 	 	4.59	% 	
2020	 	 	184,493	  	 	 	11,574,011	  	 	 	62.73	  	 	 	12,000,588	  	 	 	65.05	  	 	 	9.18	% 	
2021	 	 	162,156	  	 	 	21,668,436	  	 	 	133.63	  	 	 	23,219,617	  	 	 	143.19	  	 	 	8.07	% 	
2022	 	 	200,612	  	 	 	17,688,028	  	 	 	88.17	  	 	 	19,372,402	  	 	 	96.57	  	 	 	9.98	% 	
2023	 	 	171,652	  	 	 	14,948,187	  	 	 	87.08	  	 	 	16,519,437	  	 	 	96.24	  	 	 	8.54	% 	
2024	 	 	113,910	  	 	 	10,252,730	  	 	 	90.01	  	 	 	12,098,072	  	 	 	106.21	  	 	 	5.67	% 	
2025	 	 	130,667	  	 	 	8,576,305	  	 	 	65.63	  	 	 	9,560,636	  	 	 	73.17	  	 	 	6.50	% 	
Thereafter	 	 	453,977	  	 	 	40,129,446	  	 	 	88.40	  	 	 	65,288,607	  	 	 	143.81	  	 	 	22.59	% 	
 	 	
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	 	
2016	 	 	622,571	  	 	$	29,544,823	  	 	$	47.46	  	 	$	29,554,143	  	 	$	47.47	  	 	 	1.53	%(4) 	
2017	 	 	2,622,325	  	 	 	159,129,168	  	 	 	60.68	  	 	 	161,245,170	  	 	 	61.49	  	 	 	6.44	% 	
2018	 	 	1,811,990	  	 	 	113,463,920	  	 	 	62.62	  	 	 	115,789,194	  	 	 	63.90	  	 	 	4.45	% 	
2019	 	 	3,577,105	  	 	 	189,299,643	  	 	 	52.92	  	 	 	194,267,312	  	 	 	54.31	  	 	 	8.78	% 	
2020	 	 	4,622,747	  	 	 	292,455,517	  	 	 	63.26	  	 	 	304,110,823	  	 	 	65.79	  	 	 	11.35	% 	
2021	 	 	3,551,867	  	 	 	193,503,142	  	 	 	54.48	  	 	 	209,305,709	  	 	 	58.93	  	 	 	8.72	% 	
2022	 	 	4,214,220	  	 	 	243,911,540	  	 	 	57.88	  	 	 	270,315,413	  	 	 	64.14	  	 	 	10.35	% 	
2023	 	 	1,602,103	  	 	 	93,711,572	  	 	 	58.49	  	 	 	107,442,912	  	 	 	67.06	  	 	 	3.93	% 	
2024	 	 	2,712,449	  	 	 	160,606,931	  	 	 	59.21	  	 	 	178,669,721	  	 	 	65.87	  	 	 	6.66	% 	
2025	 	 	2,446,398	  	 	 	143,999,443	  	 	 	58.86	  	 	 	165,245,610	  	 	 	67.55	  	 	 	6.01	% 	
Thereafter	 	 	10,291,530	  	 	 	741,883,910	  	 	 	72.09	  	 	 	958,617,966	  	 	 	93.15	  	 	 	25.27	% 	
 
(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

THIRD QUARTER 2016
 
IN-SERVICE BOSTON REGION PROPERTIES
Lease Expirations—Boston Region (1) (2) (3)
OFFICE

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	
Year of	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	
Lease	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	
Expiration	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	
2016	 	 	168,082	  	 	$	7,375,447	  	 	$	43.88	  	 	$	7,375,447	  	 	$	43.88	(4) 	
2017	 	 	619,293	  	 	 	27,868,446	  	 	 	45.00	  	 	 	27,968,875	  	 	 	45.16	  	
2018	 	 	455,604	  	 	 	18,626,029	  	 	 	40.88	  	 	 	19,065,211	  	 	 	41.85	  	
2019	 	 	1,115,519	  	 	 	53,771,678	  	 	 	48.20	  	 	 	54,283,161	  	 	 	48.66	  	
2020	 	 	499,150	  	 	 	22,614,812	  	 	 	45.31	  	 	 	24,218,127	  	 	 	48.52	  	
2021	 	 	1,034,642	  	 	 	41,114,174	  	 	 	39.74	  	 	 	42,633,321	  	 	 	41.21	  	
2022	 	 	1,570,620	  	 	 	75,261,393	  	 	 	47.92	  	 	 	79,264,246	  	 	 	50.47	  	
2023	 	 	528,479	  	 	 	26,992,742	  	 	 	51.08	  	 	 	30,861,300	  	 	 	58.40	  	
2024	 	 	525,842	  	 	 	24,062,805	  	 	 	45.76	  	 	 	27,335,619	  	 	 	51.98	  	
2025	 	 	1,099,603	  	 	 	62,060,293	  	 	 	56.44	  	 	 	70,082,107	  	 	 	63.73	  	
Thereafter	 	 	3,712,044	  	 	 	212,492,056	  	 	 	57.24	  	 	 	243,083,010	  	 	 	65.48	  	
 	
RETAIL	  	
 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	
Year of	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	
Lease	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	
Expiration	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	
2016	 	 	56,362	  	 	$	3,490,514	  	 	$	61.93	  	 	$	3,495,314	  	 	$	62.02	(4) 	
2017	 	 	52,703	  	 	 	4,408,998	  	 	 	83.66	  	 	 	4,413,706	  	 	 	83.75	  	
2018	 	 	140,449	  	 	 	6,527,048	  	 	 	46.47	  	 	 	6,552,408	  	 	 	46.65	  	
2019	 	 	11,787	  	 	 	1,910,167	  	 	 	162.06	  	 	 	1,933,358	  	 	 	164.02	  	
2020	 	 	91,659	  	 	 	5,746,610	  	 	 	62.70	  	 	 	5,919,399	  	 	 	64.58	  	
2021	 	 	37,107	  	 	 	2,712,752	  	 	 	73.11	  	 	 	2,863,976	  	 	 	77.18	  	
2022	 	 	80,640	  	 	 	4,604,889	  	 	 	57.10	  	 	 	5,055,232	  	 	 	62.69	  	
2023	 	 	79,937	  	 	 	7,672,466	  	 	 	95.98	  	 	 	8,221,865	  	 	 	102.85	  	
2024	 	 	70,570	  	 	 	4,183,931	  	 	 	59.29	  	 	 	4,578,284	  	 	 	64.88	  	
2025	 	 	30,224	  	 	 	3,672,537	  	 	 	121.51	  	 	 	4,105,612	  	 	 	135.84	  	
Thereafter	 	 	148,681	  	 	 	10,144,741	  	 	 	68.23	  	 	 	11,276,634	  	 	 	75.84	  	
 	
TOTAL PROPERTY TYPES	  	
 	 	 	 	 	 	
 	 	 	 	 	 	 	 	 	 	 	Annualized	 	 	 	 	
Year of	 	Rentable Square	 	 	Current Annualized	 	 	Per	 	 	Rental Obligations Under	 	 	Per	 	
Lease	 	Footage Subject to	 	 	Rental Obligations Under	 	 	Square	 	 	Expiring Leases	 	 	Square	 	
Expiration	 	Expiring Leases	 	 	Expiring Leases	 	 	Foot	 	 	with future step-ups	 	 	Foot	 	
2016	 	 	224,444	  	 	$	10,865,961	  	 	$	48.41	  	 	$	10,870,761	  	 	$	48.43	(4) 	
2017	 	 	671,996	  	 	 	32,277,445	  	 	 	48.03	  	 	 	32,382,581	  	 	 	48.19	  	
2018	 	 	596,053	  	 	 	25,153,077	  	 	 	42.20	  	 	 	25,617,619	  	 	 	42.98	  	
2019	 	 	1,127,306	  	 	 	55,681,846	  	 	 	49.39	  	 	 	56,216,519	  	 	 	49.87	  	
2020	 	 	590,809	  	 	 	28,361,422	  	 	 	48.00	  	 	 	30,137,527	  	 	 	51.01	  	
2021	 	 	1,071,749	  	 	 	43,826,927	  	 	 	40.89	  	 	 	45,497,297	  	 	 	42.45	  	
2022	 	 	1,651,260	  	 	 	79,866,283	  	 	 	48.37	  	 	 	84,319,478	  	 	 	51.06	  	
2023	 	 	608,416	  	 	 	34,665,208	  	 	 	56.98	  	 	 	39,083,165	  	 	 	64.24	  	
2024	 	 	596,412	  	 	 	28,246,736	  	 	 	47.36	  	 	 	31,913,903	  	 	 	53.51	  	
2025	 	 	1,129,827	  	 	 	65,732,830	  	 	 	58.18	  	 	 	74,187,719	  	 	 	65.66	  	
Thereafter	 	 	3,860,725	  	 	 	222,636,797	  	 	 	57.67	  	 	 	254,359,644	  	 	 	65.88	  	
 
(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

THIRD QUARTER 2016
 
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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	26,907	  	  	 	1,254,896	  	  	 	46.64	  	  	 	1,254,896	  	  	 	46.64	(4) 	
Q4 2016	  	 	141,175	  	  	 	6,120,551	  	  	 	43.35	  	  	 	6,120,551	  	  	 	43.35	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	168,082	  	  	$	7,375,447	  	  	$	43.88	  	  	$	7,375,447	  	  	$	43.88	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	83,540	  	  	$	3,546,914	  	  	$	42.46	  	  	$	3,546,914	  	  	$	42.46	  	
Q2 2017	  	 	102,367	  	  	 	4,990,335	  	  	 	48.75	  	  	 	5,037,129	  	  	 	49.21	  	
Q3 2017	  	 	67,379	  	  	 	3,071,672	  	  	 	45.59	  	  	 	3,087,576	  	  	 	45.82	  	
Q4 2017	  	 	366,007	  	  	 	16,259,525	  	  	 	44.42	  	  	 	16,297,256	  	  	 	44.53	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	619,293	  	  	$	27,868,446	  	  	$	45.00	  	  	$	27,968,875	  	  	$	45.16	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	32,079	  	  	 	96,237	  	  	 	3.00	  	  	 	96,237	  	  	 	3.00	(4) 	
Q4 2016	  	 	24,283	  	  	 	3,394,277	  	  	 	139.78	  	  	 	3,399,077	  	  	 	139.98	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	56,362	  	  	$	3,490,514	  	  	$	61.93	  	  	$	3,495,314	  	  	$	62.02	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	10,549	  	  	$	1,274,865	  	  	$	120.85	  	  	$	1,277,301	  	  	$	121.08	  	
Q2 2017	  	 	28,504	  	  	 	1,940,812	  	  	 	68.09	  	  	 	1,940,812	  	  	 	68.09	  	
Q3 2017	  	 	3,388	  	  	 	526,440	  	  	 	155.38	  	  	 	526,440	  	  	 	155.38	  	
Q4 2017	  	 	10,262	  	  	 	666,880	  	  	 	64.99	  	  	 	669,152	  	  	 	65.21	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	52,703	  	  	$	4,408,998	  	  	$	83.66	  	  	$	4,413,706	  	  	$	83.75	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	58,986	  	  	 	1,351,133	  	  	 	22.91	  	  	 	1,351,133	  	  	 	22.91	(4) 	
Q4 2016	  	 	165,458	  	  	 	9,514,828	  	  	 	57.51	  	  	 	9,519,628	  	  	 	57.54	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	224,444	  	  	$	10,865,961	  	  	$	48.41	  	  	$	10,870,761	  	  	$	48.43	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	94,089	  	  	$	4,821,780	  	  	$	51.25	  	  	$	4,824,216	  	  	$	51.27	  	
Q2 2017	  	 	130,871	  	  	 	6,931,147	  	  	 	52.96	  	  	 	6,977,941	  	  	 	53.32	  	
Q3 2017	  	 	70,767	  	  	 	3,598,113	  	  	 	50.84	  	  	 	3,614,017	  	  	 	51.07	  	
Q4 2017	  	 	376,269	  	  	 	16,926,405	  	  	 	44.98	  	  	 	16,966,408	  	  	 	45.09	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	671,996	  	  	$	32,277,445	  	  	$	48.03	  	  	$	32,382,581	  	  	$	48.19	  	

(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

THIRD QUARTER 2016
 
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	 	
2016	 	 	81,014	  	 	$	5,003,203	  	 	$	61.76	  	 	$	5,003,203	  	 	$	61.76	(4) 	
2017	 	 	781,141	  	 	 	65,057,518	  	 	 	83.29	  	 	 	65,057,518	  	 	 	83.29	  	
2018	 	 	525,434	  	 	 	42,080,919	  	 	 	80.09	  	 	 	42,219,142	  	 	 	80.35	  	
2019	 	 	488,304	  	 	 	38,756,482	  	 	 	79.37	  	 	 	38,942,619	  	 	 	79.75	  	
2020	 	 	1,859,183	  	 	 	152,265,608	  	 	 	81.90	  	 	 	156,383,386	  	 	 	84.11	  	
2021	 	 	388,115	  	 	 	33,826,099	  	 	 	87.15	  	 	 	35,019,730	  	 	 	90.23	  	
2022	 	 	923,972	  	 	 	80,408,965	  	 	 	87.03	  	 	 	86,105,136	  	 	 	93.19	  	
2023	 	 	94,316	  	 	 	8,482,716	  	 	 	89.94	  	 	 	9,382,670	  	 	 	99.48	  	
2024	 	 	1,045,709	  	 	 	72,172,295	  	 	 	69.02	  	 	 	78,762,512	  	 	 	75.32	  	
2025	 	 	442,855	  	 	 	36,613,682	  	 	 	82.68	  	 	 	40,077,558	  	 	 	90.50	  	
Thereafter	 	 	3,348,175	  	 	 	306,639,583	  	 	 	91.58	  	 	 	409,721,723	  	 	 	122.37	  	
 	
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	 	
2016	 	 	5,927	  	 	$	649,793	  	 	$	109.63	  	 	$	649,793	  	 	$	109.63	(4) 	
2017	 	 	36,901	  	 	 	7,015,689	  	 	 	190.12	  	 	 	7,015,689	  	 	 	190.12	  	
2018	 	 	8,114	  	 	 	9,023,731	  	 	 	1,112.12	  	 	 	9,549,453	  	 	 	1,176.91	  	
2019	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	
2020	 	 	3,452	  	 	 	253,056	  	 	 	73.31	  	 	 	253,056	  	 	 	73.31	  	
2021	 	 	26,225	  	 	 	12,586,842	  	 	 	479.96	  	 	 	13,635,533	  	 	 	519.94	  	
2022	 	 	58,093	  	 	 	9,911,629	  	 	 	170.62	  	 	 	10,845,627	  	 	 	186.69	  	
2023	 	 	2,850	  	 	 	2,844,360	  	 	 	998.02	  	 	 	3,455,985	  	 	 	1,212.63	  	
2024	 	 	12,745	  	 	 	4,195,277	  	 	 	329.17	  	 	 	5,380,865	  	 	 	422.19	  	
2025	 	 	1,872	  	 	 	654,764	  	 	 	349.77	  	 	 	730,700	  	 	 	390.33	  	
Thereafter	 	 	144,516	  	 	 	22,220,454	  	 	 	153.76	  	 	 	44,794,342	  	 	 	309.96	  	
 	
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	 	
2016	 	 	86,941	  	 	$	5,652,996	  	 	$	65.02	  	 	$	5,652,996	  	 	$	65.02	(4) 	
2017	 	 	818,042	  	 	 	72,073,207	  	 	 	88.10	  	 	 	72,073,207	  	 	 	88.10	  	
2018	 	 	533,548	  	 	 	51,104,651	  	 	 	95.78	  	 	 	51,768,596	  	 	 	97.03	  	
2019	 	 	488,304	  	 	 	38,756,482	  	 	 	79.37	  	 	 	38,942,619	  	 	 	79.75	  	
2020	 	 	1,862,635	  	 	 	152,518,664	  	 	 	81.88	  	 	 	156,636,442	  	 	 	84.09	  	
2021	 	 	414,340	  	 	 	46,412,941	  	 	 	112.02	  	 	 	48,655,262	  	 	 	117.43	  	
2022	 	 	982,065	  	 	 	90,320,594	  	 	 	91.97	  	 	 	96,950,763	  	 	 	98.72	  	
2023	 	 	97,166	  	 	 	11,327,077	  	 	 	116.57	  	 	 	12,838,655	  	 	 	132.13	  	
2024	 	 	1,058,454	  	 	 	76,367,572	  	 	 	72.15	  	 	 	84,143,377	  	 	 	79.50	  	
2025	 	 	444,727	  	 	 	37,268,446	  	 	 	83.80	  	 	 	40,808,257	  	 	 	91.76	  	
Thereafter	 	 	3,492,691	  	 	 	328,860,037	  	 	 	94.16	  	 	 	454,516,064	  	 	 	130.13	  	
 
(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 current quarter.	
 
35

THIRD QUARTER 2016
 
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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	8,338	  	  	 	1,049,640	  	  	 	125.89	  	  	 	1,049,640	  	  	 	125.89	(4) 	
Q4 2016	  	 	72,676	  	  	 	3,953,563	  	  	 	54.40	  	  	 	3,953,563	  	  	 	54.40	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	81,014	  	  	$	5,003,203	  	  	$	61.76	  	  	$	5,003,203	  	  	$	61.76	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	82,865	  	  	$	5,933,797	  	  	$	71.61	  	  	$	5,933,797	  	  	$	71.61	  	
Q2 2017	  	 	142,222	  	  	 	12,227,116	  	  	 	85.97	  	  	 	12,227,116	  	  	 	85.97	  	
Q3 2017	  	 	518,167	  	  	 	43,805,827	  	  	 	84.54	  	  	 	43,805,827	  	  	 	84.54	  	
Q4 2017	  	 	37,887	  	  	 	3,090,778	  	  	 	81.58	  	  	 	3,090,778	  	  	 	81.58	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	781,141	  	  	$	65,057,518	  	  	$	83.29	  	  	$	65,057,518	  	  	$	83.29	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	2,526	  	  	 	353,715	  	  	 	140.03	  	  	 	353,715	  	  	 	140.03	(4) 	
Q4 2016	  	 	3,401	  	  	 	296,078	  	  	 	87.06	  	  	 	296,078	  	  	 	87.06	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	5,927	  	  	$	649,793	  	  	$	109.63	  	  	$	649,793	  	  	$	109.63	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	10,216	  	  	$	4,439,371	  	  	$	434.55	  	  	$	4,439,371	  	  	$	434.55	  	
Q2 2017	  	 	626	  	  	 	180,160	  	  	 	287.79	  	  	 	180,160	  	  	 	287.79	  	
Q3 2017	  	 	26,059	  	  	 	2,396,159	  	  	 	91.95	  	  	 	2,396,159	  	  	 	91.95	  	
Q4 2017	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	36,901	  	  	$	7,015,689	  	  	$	190.12	  	  	$	7,015,689	  	  	$	190.12	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	10,864	  	  	 	1,403,355	  	  	 	129.17	  	  	 	1,403,355	  	  	 	129.17	(4) 	
Q4 2016	  	 	76,077	  	  	 	4,249,641	  	  	 	55.86	  	  	 	4,249,641	  	  	 	55.86	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	86,941	  	  	$	5,652,996	  	  	$	65.02	  	  	$	5,652,996	  	  	$	65.02	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	93,081	  	  	$	10,373,168	  	  	$	111.44	  	  	$	10,373,168	  	  	$	111.44	  	
Q2 2017	  	 	142,848	  	  	 	12,407,276	  	  	 	86.86	  	  	 	12,407,276	  	  	 	86.86	  	
Q3 2017	  	 	544,226	  	  	 	46,201,986	  	  	 	84.89	  	  	 	46,201,986	  	  	 	84.89	  	
Q4 2017	  	 	37,887	  	  	 	3,090,778	  	  	 	81.58	  	  	 	3,090,778	  	  	 	81.58	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	818,042	  	  	$	72,073,207	  	  	$	88.10	  	  	$	72,073,207	  	  	$	88.10	  	

(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

THIRD QUARTER 2016
 
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	 	
2016	 	 	87,141	  	 	$	3,144,928	  	 	$	36.09	  	 	$	3,146,128	  	 	$	36.10	(4) 	
2017	 	 	508,246	  	 	 	23,186,645	  	 	 	45.62	  	 	 	25,046,505	  	 	 	49.28	  	
2018	 	 	195,064	  	 	 	10,411,063	  	 	 	53.37	  	 	 	10,690,049	  	 	 	54.80	  	
2019	 	 	836,131	  	 	 	41,254,699	  	 	 	49.34	  	 	 	43,724,811	  	 	 	52.29	  	
2020	 	 	787,254	  	 	 	48,976,128	  	 	 	62.21	  	 	 	51,390,887	  	 	 	65.28	  	
2021	 	 	761,906	  	 	 	33,679,606	  	 	 	44.20	  	 	 	38,631,464	  	 	 	50.70	  	
2022	 	 	782,406	  	 	 	37,620,802	  	 	 	48.08	  	 	 	47,994,521	  	 	 	61.34	  	
2023	 	 	301,611	  	 	 	19,529,785	  	 	 	64.75	  	 	 	22,928,272	  	 	 	76.02	  	
2024	 	 	394,472	  	 	 	22,162,314	  	 	 	56.18	  	 	 	23,501,649	  	 	 	59.58	  	
2025	 	 	313,833	  	 	 	17,119,817	  	 	 	54.55	  	 	 	21,828,149	  	 	 	69.55	  	
Thereafter	 	 	967,911	  	 	 	61,950,804	  	 	 	64.00	  	 	 	82,304,682	  	 	 	85.03	  	
 	
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	 	
2016	 	 	41,692	  	 	$	1,456,086	  	 	$	34.92	  	 	$	1,456,086	  	 	$	34.92	  	
2017	 	 	15,277	  	 	 	1,054,806	  	 	 	69.05	  	 	 	1,058,353	  	 	 	69.28	  	
2018	 	 	35,502	  	 	 	2,131,323	  	 	 	60.03	  	 	 	2,165,211	  	 	 	60.99	  	
2019	 	 	14,168	  	 	 	769,355	  	 	 	54.30	  	 	 	793,047	  	 	 	55.97	  	
2020	 	 	35,924	  	 	 	2,218,546	  	 	 	61.76	  	 	 	2,348,273	  	 	 	65.37	  	
2021	 	 	22,132	  	 	 	1,420,869	  	 	 	64.20	  	 	 	1,505,709	  	 	 	68.03	  	
2022	 	 	27,445	  	 	 	1,086,007	  	 	 	39.57	  	 	 	1,161,032	  	 	 	42.30	  	
2023	 	 	29,753	  	 	 	1,661,776	  	 	 	55.85	  	 	 	1,770,434	  	 	 	59.50	  	
2024	 	 	8,545	  	 	 	559,033	  	 	 	65.42	  	 	 	648,935	  	 	 	75.94	  	
2025	 	 	21,461	  	 	 	1,329,773	  	 	 	61.96	  	 	 	1,527,889	  	 	 	71.19	  	
Thereafter	 	 	36,174	  	 	 	2,467,228	  	 	 	68.20	  	 	 	3,014,625	  	 	 	83.34	  	
 	
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	 	
2016	 	 	128,833	  	 	$	4,601,013	  	 	$	35.71	  	 	$	4,602,213	  	 	$	35.72	(4) 	
2017	 	 	523,523	  	 	 	24,241,450	  	 	 	46.30	  	 	 	26,104,857	  	 	 	49.86	  	
2018	 	 	230,566	  	 	 	12,542,386	  	 	 	54.40	  	 	 	12,855,260	  	 	 	55.76	  	
2019	 	 	850,299	  	 	 	42,024,054	  	 	 	49.42	  	 	 	44,517,858	  	 	 	52.36	  	
2020	 	 	823,178	  	 	 	51,194,675	  	 	 	62.19	  	 	 	53,739,160	  	 	 	65.28	  	
2021	 	 	784,038	  	 	 	35,100,475	  	 	 	44.77	  	 	 	40,137,172	  	 	 	51.19	  	
2022	 	 	809,851	  	 	 	38,706,810	  	 	 	47.79	  	 	 	49,155,553	  	 	 	60.70	  	
2023	 	 	331,364	  	 	 	21,191,561	  	 	 	63.95	  	 	 	24,698,706	  	 	 	74.54	  	
2024	 	 	403,017	  	 	 	22,721,347	  	 	 	56.38	  	 	 	24,150,584	  	 	 	59.92	  	
2025	 	 	335,294	  	 	 	18,449,590	  	 	 	55.03	  	 	 	23,356,038	  	 	 	69.66	  	
Thereafter	 	 	1,004,085	  	 	 	64,418,032	  	 	 	64.16	  	 	 	85,319,307	  	 	 	84.97	  	
 
(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

THIRD QUARTER 2016
 
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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	6,692	  	  	 	344,139	  	  	 	51.43	  	  	 	344,139	  	  	 	51.43	(4) 	
Q4 2016	  	 	80,449	  	  	 	2,800,789	  	  	 	34.81	  	  	 	2,801,989	  	  	 	34.83	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	87,141	  	  	$	3,144,928	  	  	$	36.09	  	  	$	3,146,128	  	  	$	36.10	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	92,602	  	  	$	5,014,048	  	  	$	54.15	  	  	$	5,016,186	  	  	$	54.17	  	
Q2 2017	  	 	176,105	  	  	 	6,295,225	  	  	 	35.75	  	  	 	6,514,577	  	  	 	36.99	  	
Q3 2017	  	 	184,296	  	  	 	9,654,704	  	  	 	52.39	  	  	 	11,000,015	  	  	 	59.69	  	
Q4 2017	  	 	55,243	  	  	 	2,222,668	  	  	 	40.23	  	  	 	2,515,727	  	  	 	45.54	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	508,246	  	  	$	23,186,645	  	  	$	45.62	  	  	$	25,046,505	  	  	$	49.28	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q4 2016	  	 	41,692	  	  	 	1,456,086	  	  	 	34.92	  	  	 	1,456,086	  	  	 	34.92	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	41,692	  	  	$	1,456,086	  	  	$	34.92	  	  	$	1,456,086	  	  	$	34.92	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	30	  	  	$	14,400	  	  	$	480.00	  	  	$	14,400	  	  	$	480.00	  	
Q2 2017	  	 	130	  	  	 	26,046	  	  	 	200.35	  	  	 	26,046	  	  	 	200.35	  	
Q3 2017	  	 	8,793	  	  	 	635,152	  	  	 	72.23	  	  	 	636,741	  	  	 	72.41	  	
Q4 2017	  	 	6,324	  	  	 	379,208	  	  	 	59.96	  	  	 	381,166	  	  	 	60.27	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	15,277	  	  	$	1,054,806	  	  	$	69.05	  	  	$	1,058,353	  	  	$	69.28	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	6,692	  	  	 	344,139	  	  	 	51.43	  	  	 	344,139	  	  	 	51.43	(4) 	
Q4 2016	  	 	122,141	  	  	 	4,256,874	  	  	 	34.85	  	  	 	4,258,074	  	  	 	34.86	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	128,833	  	  	$	4,601,013	  	  	$	35.71	  	  	$	4,602,213	  	  	$	35.72	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	92,632	  	  	$	5,028,448	  	  	$	54.28	  	  	$	5,030,586	  	  	$	54.31	  	
Q2 2017	  	 	176,235	  	  	 	6,321,270	  	  	 	35.87	  	  	 	6,540,623	  	  	 	37.11	  	
Q3 2017	  	 	193,089	  	  	 	10,289,857	  	  	 	53.29	  	  	 	11,636,756	  	  	 	60.27	  	
Q4 2017	  	 	61,567	  	  	 	2,601,875	  	  	 	42.26	  	  	 	2,896,893	  	  	 	47.05	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	523,523	  	  	$	24,241,450	  	  	$	46.30	  	  	$	26,104,857	  	  	$	49.86	  	

(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

THIRD QUARTER 2016
 
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	 	
2016	 	 	169,207	  	 	$	7,575,971	  	 	$	44.77	  	 	$	7,579,291	  	 	$	44.79	(4)(5) 	
2017	 	 	564,678	  	 	 	28,041,245	  	 	 	49.66	  	 	 	28,168,537	  	 	 	49.88	(5) 	
2018	 	 	401,868	  	 	 	21,028,927	  	 	 	52.33	  	 	 	21,865,174	  	 	 	54.41	  	
2019	 	 	1,044,909	  	 	 	49,134,877	  	 	 	47.02	  	 	 	50,818,245	  	 	 	48.63	  	
2020	 	 	1,292,667	  	 	 	57,024,958	  	 	 	44.11	  	 	 	60,117,834	  	 	 	46.51	  	
2021	 	 	1,205,048	  	 	 	63,214,826	  	 	 	52.46	  	 	 	69,801,579	  	 	 	57.92	  	
2022	 	 	736,610	  	 	 	32,932,351	  	 	 	44.71	  	 	 	37,579,107	  	 	 	51.02	  	
2023	 	 	506,045	  	 	 	23,758,141	  	 	 	46.95	  	 	 	27,751,232	  	 	 	54.84	  	
2024	 	 	632,516	  	 	 	31,956,786	  	 	 	50.52	  	 	 	36,971,869	  	 	 	58.45	  	
2025	 	 	459,440	  	 	 	19,629,346	  	 	 	42.72	  	 	 	23,697,161	  	 	 	51.58	  	
Thereafter	 	 	1,809,423	  	 	 	120,672,020	  	 	 	66.69	  	 	 	158,219,946	  	 	 	87.44	  	
 	
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	 	
2016	 	 	13,146	  	 	$	848,881	  	 	$	64.57	  	 	$	848,881	  	 	$	64.57	  	
2017	 	 	44,086	  	 	 	2,495,820	  	 	 	56.61	  	 	 	2,515,987	  	 	 	57.07	  	
2018	 	 	49,955	  	 	 	3,634,879	  	 	 	72.76	  	 	 	3,682,546	  	 	 	73.72	  	
2019	 	 	66,287	  	 	 	3,702,386	  	 	 	55.85	  	 	 	3,772,072	  	 	 	56.91	  	
2020	 	 	53,458	  	 	 	3,355,798	  	 	 	62.77	  	 	 	3,479,860	  	 	 	65.10	  	
2021	 	 	76,692	  	 	 	4,947,973	  	 	 	64.52	  	 	 	5,214,399	  	 	 	67.99	  	
2022	 	 	34,434	  	 	 	2,085,502	  	 	 	60.57	  	 	 	2,310,512	  	 	 	67.10	  	
2023	 	 	59,112	  	 	 	2,769,585	  	 	 	46.85	  	 	 	3,071,154	  	 	 	51.95	  	
2024	 	 	22,050	  	 	 	1,314,490	  	 	 	59.61	  	 	 	1,489,989	  	 	 	67.57	  	
2025	 	 	77,110	  	 	 	2,919,231	  	 	 	37.86	  	 	 	3,196,435	  	 	 	41.45	  	
Thereafter	 	 	124,606	  	 	 	5,297,023	  	 	 	42.51	  	 	 	6,203,006	  	 	 	49.78	  	
 	
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	 	
2016	 	 	182,353	  	 	$	8,424,852	  	 	$	46.20	  	 	$	8,428,172	  	 	$	46.22	(4) 	
2017	 	 	608,764	  	 	 	30,537,065	  	 	 	50.16	  	 	 	30,684,524	  	 	 	50.40	  	
2018	 	 	451,823	  	 	 	24,663,807	  	 	 	54.59	  	 	 	25,547,720	  	 	 	56.54	  	
2019	 	 	1,111,196	  	 	 	52,837,263	  	 	 	47.55	  	 	 	54,590,317	  	 	 	49.13	  	
2020	 	 	1,346,125	  	 	 	60,380,756	  	 	 	44.86	  	 	 	63,597,695	  	 	 	47.25	  	
2021	 	 	1,281,740	  	 	 	68,162,799	  	 	 	53.18	  	 	 	75,015,978	  	 	 	58.53	  	
2022	 	 	771,044	  	 	 	35,017,853	  	 	 	45.42	  	 	 	39,889,619	  	 	 	51.73	  	
2023	 	 	565,157	  	 	 	26,527,726	  	 	 	46.94	  	 	 	30,822,386	  	 	 	54.54	  	
2024	 	 	654,566	  	 	 	33,271,275	  	 	 	50.83	  	 	 	38,461,857	  	 	 	58.76	  	
2025	 	 	536,550	  	 	 	22,548,577	  	 	 	42.03	  	 	 	26,893,596	  	 	 	50.12	  	
Thereafter	 	 	1,934,029	  	 	 	125,969,043	  	 	 	65.13	  	 	 	164,422,951	  	 	 	85.02	  	
 
(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 current quarter.	
(5)	Includes 10,922 and 14,887 square feet of Sensitive Compartmented Information Facility (SCIF) space in 2016 and 2017, respectively. Excluding the SCIF space, the current and future expiring rental rates per square foot would be $40.84 and $40.86 and $47.72 and $47.93, respectively.	
 
39

THIRD QUARTER 2016
 
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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	42,422	  	  	 	1,036,190	  	  	 	24.43	  	  	 	1,036,190	  	  	 	24.43	(4) 	
Q4 2016	  	 	126,785	  	  	 	6,539,781	  	  	 	51.58	  	  	 	6,543,102	  	  	 	51.61	(5) 	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	169,207	  	  	$	7,575,971	  	  	$	44.77	  	  	$	7,579,291	  	  	$	44.79	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	114,048	  	  	$	5,261,529	  	  	$	46.13	  	  	$	5,263,431	  	  	$	46.15	  	
Q2 2017	  	 	87,296	  	  	 	5,413,006	  	  	 	62.01	  	  	 	5,445,204	  	  	 	62.38	(5) 	
Q3 2017	  	 	232,720	  	  	 	11,242,054	  	  	 	48.31	  	  	 	11,265,402	  	  	 	48.41	  	
Q4 2017	  	 	130,614	  	  	 	6,124,656	  	  	 	46.89	  	  	 	6,194,500	  	  	 	47.43	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	564,678	  	  	$	28,041,245	  	  	$	49.66	  	  	$	28,168,537	  	  	$	49.88	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q4 2016	  	 	13,146	  	  	 	848,881	  	  	 	64.57	  	  	 	848,881	  	  	 	64.57	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	13,146	  	  	$	848,881	  	  	$	64.57	  	  	$	848,881	  	  	$	64.57	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	21,273	  	  	$	1,274,401	  	  	$	59.91	  	  	$	1,274,401	  	  	$	59.91	  	
Q2 2017	  	 	5,066	  	  	 	140,592	  	  	 	27.75	  	  	 	140,592	  	  	 	27.75	  	
Q3 2017	  	 	6,842	  	  	 	446,730	  	  	 	65.29	  	  	 	446,730	  	  	 	65.29	  	
Q4 2017	  	 	10,905	  	  	 	634,097	  	  	 	58.15	  	  	 	654,263	  	  	 	60.00	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	44,086	  	  	$	2,495,820	  	  	$	56.61	  	  	$	2,515,987	  	  	$	57.07	  	

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 2016	  	 	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	  	$	—  	  	
Q2 2016	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
Q3 2016	  	 	42,422	  	  	 	1,036,190	  	  	 	24.43	  	  	 	1,036,190	  	  	 	24.43	(4) 	
Q4 2016	  	 	139,931	  	  	 	7,388,662	  	  	 	52.80	  	  	 	7,391,982	  	  	 	52.83	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2016	  	 	182,353	  	  	$	8,424,852	  	  	$	46.20	  	  	$	8,428,172	  	  	$	46.22	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Q1 2017	  	 	135,321	  	  	$	6,535,931	  	  	$	48.30	  	  	$	6,537,833	  	  	$	48.31	  	
Q2 2017	  	 	92,362	  	  	 	5,553,598	  	  	 	60.13	  	  	 	5,585,796	  	  	 	60.48	  	
Q3 2017	  	 	239,562	  	  	 	11,688,783	  	  	 	48.79	  	  	 	11,712,132	  	  	 	48.89	  	
Q4 2017	  	 	141,519	  	  	 	6,758,753	  	  	 	47.76	  	  	 	6,848,763	  	  	 	48.39	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total 2017	  	 	608,764	  	  	$	30,537,065	  	  	$	50.16	  	  	$	30,684,524	  	  	$	50.40	  	

(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 current quarter.	
(5)	Includes 10,922 and 14,887 square feet of Sensitive Compartmented Information Facility (SCIF) space in Q4 2016 and Q2 2017, respectively. Excluding the SCIF space, the current and future expiring rental rates per square foot would be $46.85 and $46.88 and $49.79 and $50.10, respectively.	
 
40

THIRD QUARTER 2016
 
CBD PROPERTIES
Lease Expirations (1) (2) (3)

 	  	Boston	 	 	San Francisco and Los Angeles	 	
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	 	
2016	  	 	127,483	  	  	$	7,621,847	  	  	$	59.79	  	  	$	7,626,647	  	  	$	59.82	(4) 	 	 	84,256	  	  	$	3,215,217	  	  	$	38.16	  	  	$	3,216,417	  	  	$	38.17	(4) 	
2017	  	 	348,617	  	  	 	21,215,474	  	  	 	60.86	  	  	 	21,289,022	  	  	 	61.07	  	 	 	295,474	  	  	 	17,801,141	  	  	 	60.25	  	  	 	19,310,182	  	  	 	65.35	  	
2018	  	 	320,907	  	  	 	15,939,908	  	  	 	49.67	  	  	 	16,204,392	  	  	 	50.50	  	 	 	171,523	  	  	 	10,293,190	  	  	 	60.01	  	  	 	10,525,952	  	  	 	61.37	  	
2019	  	 	650,121	  	  	 	36,945,959	  	  	 	56.83	  	  	 	37,294,412	  	  	 	57.37	  	 	 	380,470	  	  	 	22,315,095	  	  	 	58.65	  	  	 	23,384,286	  	  	 	61.46	  	
2020	  	 	315,699	  	  	 	18,840,650	  	  	 	59.68	  	  	 	19,496,726	  	  	 	61.76	  	 	 	747,531	  	  	 	47,763,200	  	  	 	63.89	  	  	 	50,038,818	  	  	 	66.94	  	
2021	  	 	422,738	  	  	 	23,922,186	  	  	 	56.59	  	  	 	24,619,328	  	  	 	58.24	  	 	 	448,368	  	  	 	26,515,451	  	  	 	59.14	  	  	 	30,375,396	  	  	 	67.75	  	
2022	  	 	955,602	  	  	 	54,345,121	  	  	 	56.87	  	  	 	58,504,105	  	  	 	61.22	  	 	 	405,507	  	  	 	21,793,379	  	  	 	53.74	  	  	 	28,222,940	  	  	 	69.60	  	
2023	  	 	412,150	  	  	 	27,809,272	  	  	 	67.47	  	  	 	30,939,587	  	  	 	75.07	  	 	 	290,707	  	  	 	19,001,813	  	  	 	65.36	  	  	 	21,856,052	  	  	 	75.18	  	
2024	  	 	272,428	  	  	 	15,614,664	  	  	 	57.32	  	  	 	17,233,344	  	  	 	63.26	  	 	 	378,505	  	  	 	21,765,379	  	  	 	57.50	  	  	 	22,939,592	  	  	 	60.61	  	
2025	  	 	689,507	  	  	 	44,618,581	  	  	 	64.71	  	  	 	50,945,581	  	  	 	73.89	  	 	 	329,652	  	  	 	18,255,875	  	  	 	55.38	  	  	 	23,103,875	  	  	 	70.09	  	
Thereafter	  	 	3,358,767	  	  	 	202,968,147	  	  	 	60.43	  	  	 	232,590,417	  	  	 	69.25	  	 	 	1,004,085	  	  	 	64,418,032	  	  	 	64.16	  	  	 	85,319,307	  	  	 	84.97	  	
 	 	 	
 	  	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	 	
2016	  	 	54,418	  	  	$	4,387,989	  	  	$	80.63	  	  	$	4,387,989	  	  	$	80.63	(4) 	 	 	55,237	  	  	$	2,695,440	  	  	$	48.80	  	  	$	2,695,440	  	  	$	48.80	(4) 	
2017	  	 	659,576	  	  	 	66,208,560	  	  	 	100.38	  	  	 	66,208,560	  	  	 	100.38	  	 	 	307,930	  	  	 	16,062,338	  	  	 	52.16	  	  	 	16,080,727	  	  	 	52.22	  	
2018	  	 	320,479	  	  	 	43,877,084	  	  	 	136.91	  	  	 	44,402,806	  	  	 	138.55	  	 	 	116,353	  	  	 	6,864,525	  	  	 	59.00	  	  	 	7,130,559	  	  	 	61.28	  	
2019	  	 	331,971	  	  	 	32,952,800	  	  	 	99.26	  	  	 	33,021,221	  	  	 	99.47	  	 	 	463,931	  	  	 	29,230,779	  	  	 	63.01	  	  	 	30,811,383	  	  	 	66.41	  	
2020	  	 	1,554,040	  	  	 	141,870,013	  	  	 	91.29	  	  	 	145,505,560	  	  	 	93.63	  	 	 	449,101	  	  	 	24,928,827	  	  	 	55.51	  	  	 	26,453,343	  	  	 	58.90	  	
2021	  	 	311,243	  	  	 	42,996,530	  	  	 	138.14	  	  	 	45,054,180	  	  	 	144.76	  	 	 	545,869	  	  	 	35,596,045	  	  	 	65.21	  	  	 	39,291,367	  	  	 	71.98	  	
2022	  	 	915,419	  	  	 	88,137,018	  	  	 	96.28	  	  	 	94,553,309	  	  	 	103.29	  	 	 	100,909	  	  	 	5,812,055	  	  	 	57.60	  	  	 	6,433,114	  	  	 	63.75	  	
2023	  	 	88,867	  	  	 	11,062,880	  	  	 	124.49	  	  	 	12,557,860	  	  	 	141.31	  	 	 	46,648	  	  	 	2,899,372	  	  	 	62.15	  	  	 	3,471,497	  	  	 	74.42	  	
2024	  	 	669,101	  	  	 	62,857,518	  	  	 	93.94	  	  	 	69,837,758	  	  	 	104.38	  	 	 	193,400	  	  	 	12,614,112	  	  	 	65.22	  	  	 	14,658,060	  	  	 	75.79	  	
2025	  	 	310,980	  	  	 	32,436,710	  	  	 	104.30	  	  	 	35,491,958	  	  	 	114.13	  	 	 	82,103	  	  	 	4,228,304	  	  	 	51.50	  	  	 	5,107,216	  	  	 	62.20	  	
Thereafter	  	 	3,154,689	  	  	 	317,328,180	  	  	 	100.59	  	  	 	441,695,914	  	  	 	140.01	  	 	 	1,628,455	  	  	 	113,562,141	  	  	 	69.74	  	  	 	148,326,140	  	  	 	91.08	  	
 
(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

THIRD QUARTER 2016
 
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	 	
2016	  	 	96,961	  	  	$	3,244,115	  	  	$	33.46	  	  	$	3,244,115	  	  	$	33.46	(4) 	 	 	44,577	  	  	$	1,385,796	  	  	$	31.09	  	  	$	1,385,796	  	  	$	31.09	  	
2017	  	 	323,379	  	  	 	11,061,971	  	  	 	34.21	  	  	 	11,093,559	  	  	 	34.31	  	 	 	228,049	  	  	 	6,440,309	  	  	 	28.24	  	  	 	6,794,675	  	  	 	29.79	  	
2018	  	 	275,146	  	  	 	9,213,169	  	  	 	33.48	  	  	 	9,413,226	  	  	 	34.21	  	 	 	59,043	  	  	 	2,249,196	  	  	 	38.09	  	  	 	2,329,308	  	  	 	39.45	  	
2019	  	 	477,185	  	  	 	18,735,887	  	  	 	39.26	  	  	 	18,922,107	  	  	 	39.65	  	 	 	469,829	  	  	 	19,708,959	  	  	 	41.95	  	  	 	21,133,571	  	  	 	44.98	  	
2020	  	 	275,110	  	  	 	9,520,772	  	  	 	34.61	  	  	 	10,640,801	  	  	 	38.68	  	 	 	75,647	  	  	 	3,431,475	  	  	 	45.36	  	  	 	3,700,342	  	  	 	48.92	  	
2021	  	 	649,011	  	  	 	19,904,740	  	  	 	30.67	  	  	 	20,877,969	  	  	 	32.17	  	 	 	335,670	  	  	 	8,585,024	  	  	 	25.58	  	  	 	9,761,777	  	  	 	29.08	  	
2022	  	 	695,658	  	  	 	25,521,161	  	  	 	36.69	  	  	 	25,815,374	  	  	 	37.11	  	 	 	404,344	  	  	 	16,913,430	  	  	 	41.83	  	  	 	20,932,613	  	  	 	51.77	  	
2023	  	 	196,266	  	  	 	6,855,936	  	  	 	34.93	  	  	 	8,143,578	  	  	 	41.49	  	 	 	40,657	  	  	 	2,189,748	  	  	 	53.86	  	  	 	2,842,655	  	  	 	69.92	  	
2024	  	 	323,984	  	  	 	12,632,071	  	  	 	38.99	  	  	 	14,680,559	  	  	 	45.31	  	 	 	24,512	  	  	 	955,968	  	  	 	39.00	  	  	 	1,210,992	  	  	 	49.40	  	
2025	  	 	440,320	  	  	 	21,114,248	  	  	 	47.95	  	  	 	23,242,138	  	  	 	52.78	  	 	 	5,642	  	  	 	193,716	  	  	 	34.33	  	  	 	252,162	  	  	 	44.69	  	
Thereafter	  	 	501,958	  	  	 	19,668,650	  	  	 	39.18	  	  	 	21,769,227	  	  	 	43.37	  	 	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	  	 	—  	  	
 	 	 	
 	  	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	 	
2016	  	 	32,523	  	  	$	1,265,008	  	  	$	38.90	  	  	$	1,265,008	  	  	$	38.90	  	 	 	127,116	  	  	$	5,729,412	  	  	$	45.07	  	  	$	5,732,732	  	  	$	45.10	(4)(5) 	
2017	  	 	158,466	  	  	 	5,864,647	  	  	 	37.01	  	  	 	5,864,647	  	  	 	37.01	  	 	 	300,834	  	  	 	14,474,728	  	  	 	48.12	  	  	 	14,603,797	  	  	 	48.54	(5) 	
2018	  	 	213,069	  	  	 	7,227,566	  	  	 	33.92	  	  	 	7,365,789	  	  	 	34.57	  	 	 	335,470	  	  	 	17,799,281	  	  	 	53.06	  	  	 	18,417,161	  	  	 	54.90	  	
2019	  	 	156,333	  	  	 	5,803,682	  	  	 	37.12	  	  	 	5,921,398	  	  	 	37.88	  	 	 	647,265	  	  	 	23,606,483	  	  	 	36.47	  	  	 	23,778,934	  	  	 	36.74	  	
2020	  	 	308,595	  	  	 	10,648,651	  	  	 	34.51	  	  	 	11,130,882	  	  	 	36.07	  	 	 	897,024	  	  	 	35,451,929	  	  	 	39.52	  	  	 	37,144,351	  	  	 	41.41	  	
2021	  	 	103,097	  	  	 	3,416,411	  	  	 	33.14	  	  	 	3,601,082	  	  	 	34.93	  	 	 	735,871	  	  	 	32,566,754	  	  	 	44.26	  	  	 	35,724,611	  	  	 	48.55	  	
2022	  	 	66,646	  	  	 	2,183,577	  	  	 	32.76	  	  	 	2,397,454	  	  	 	35.97	  	 	 	670,135	  	  	 	29,205,798	  	  	 	43.58	  	  	 	33,456,505	  	  	 	49.93	  	
2023	  	 	8,299	  	  	 	264,197	  	  	 	31.83	  	  	 	280,795	  	  	 	33.83	  	 	 	518,509	  	  	 	23,628,354	  	  	 	45.57	  	  	 	27,350,889	  	  	 	52.75	  	
2024	  	 	389,353	  	  	 	13,510,054	  	  	 	34.70	  	  	 	14,305,618	  	  	 	36.74	  	 	 	461,166	  	  	 	20,657,163	  	  	 	44.79	  	  	 	23,803,798	  	  	 	51.62	  	
2025	  	 	133,747	  	  	 	4,831,735	  	  	 	36.13	  	  	 	5,316,299	  	  	 	39.75	  	 	 	454,447	  	  	 	18,320,273	  	  	 	40.31	  	  	 	21,786,380	  	  	 	47.94	  	
Thereafter	  	 	338,002	  	  	 	11,531,857	  	  	 	34.12	  	  	 	12,820,150	  	  	 	37.93	  	 	 	305,574	  	  	 	12,406,902	  	  	 	40.60	  	  	 	16,096,811	  	  	 	52.68	  	
 
(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.	
(5)	Includes 10,922 and 14,887 square feet of Sensitive Compartmented Information Facility (SCIF) space in 2016 and 2017, respectively. Excluding the SCIF space, the current and future expiring rental rates per square foot would be $39.75 and $39.77 and $44.30 and $44.72, respectively.	
 
42

THIRD QUARTER 2016
 
LEASING ACTIVITY
for the three months ended September 30, 2016
All In-Service Properties

 	 	 	 	 	
 	  	Total	 	
Vacant space available @ 7/1/2016 (sf)	  	 	3,869,290	  	
Property dispositions/ properties taken out of service (sf)	  	 	(211,110	) 	
Properties acquired vacant space (sf)	  	 	511,789	  	
Properties placed in-service (sf) (1)	  	 	52,340	  	
Leases expiring or terminated 7/1/2016-9/30/2016 (sf)	  	 	1,553,284	  	
 	  	 	 	 	
Total space available for lease (sf)	  	 	5,775,593	  	
 	  	 	 	 	
1st generation leases (sf)	  	 	122,885	  	
2nd generation leases with new tenants (sf)	  	 	864,280	  	
2nd generation lease renewals (sf)	  	 	313,098	  	
 	  	 	 	 	
Total space leased (sf)	  	 	1,300,263	  	
 	  	 	 	 	
Vacant space available for lease @ 9/30/2016 (sf)	  	 	4,475,330	  	
 	  	 	 	 	
Net (increase)/decrease in available space (sf)	  	 	(606,040	) 	
Second generation leasing information: (2)	  	 	 	 	
Leases commencing during the period (sf)	  	 	1,177,378	  	
Weighted average lease term (months)	  	 	100	  	
Weighted average free rent period (days)	  	 	129	  	
Total transaction costs per square foot (3)	  	$	59.26	  	
Increase (decrease) in gross rents (4)	  	 	5.95	% 	
Increase (decrease) in net rents (5)	  	 	8.44	% 	

 	  	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	  	 	52,340	  	  	 	339,977	  	  	 	5.15	% 	 	 	7.90	% 	 	 	392,317	  	  	 	240,598	  	
New York	  	 	44,863	  	  	 	247,392	  	  	 	(11.41	%) 	 	 	(16.74	%) 	 	 	292,255	  	  	 	169,494	  	
San Francisco and Los Angeles	  	 	—  	  	  	 	453,771	  	  	 	48.72	% 	 	 	77.86	% 	 	 	453,771	  	  	 	261,320	  	
Washington, DC	  	 	25,682	  	  	 	136,238	  	  	 	(7.23	%) 	 	 	(9.52	%) 	 	 	161,920	  	  	 	222,316	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	 	 	 	 	  	 	 	 	
Total / Weighted Average	  	 	122,885	  	  	 	1,177,378	  	  	 	5.95	% 	 	 	8.44	% 	 	 	1,300,263	  	  	 	893,728	  	

(1)	Total vacant square feet of properties placed in service in Q3 2016 consist of 52,340 square feet of existing vacancy at 888 Boylston Street.	
(2)	Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,177,378 square feet of second generation leases that commenced in Q3 2016, leases for 906,639 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 825,356 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 825,356 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 and recognized in the current quarter is 287,244.	
 
43

THIRD QUARTER 2016
 
ACQUISITIONS/DISPOSITIONS
as of September 30, 2016
ACQUISITIONS
For the period from January 1, 2016 through September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	 	 	 	 	 	  	Anticipated	 	 	 	 	  	 	 	
 	  	 	 	  	 	 	 	Initial	 	  	Future	 	 	Total	 	  	Percentage	 	
Property	  	Date Acquired	 	  	Square Feet	 	 	Investment	 	  	Investment	 	 	Investment	 	  	Leased	 	
3625-3635 Peterson Way	  	 	April 22, 2016	  	  	 	218,366	  	 	$	78,000,000	  	  	$	—  	  	 	$	78,000,000	  	  	 	100	% 	
Colorado Center (49.8% ownership interest)	  	 	July 1, 2016	  	  	 	1,116,698	(1) 	 	 	502,988,000	  	  	 	—  	(2) 	 	 	502,988,000	  	  	 	66	% 	
 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	 	 	 	 	  	 	 	 	
Total Acquisitions	  	 	 	 	  	 	1,335,064	  	 	$	580,988,000	  	  	$	—  	  	 	$	580,988,000	  	  	 	71	% 	

(1)	Excludes approximately 59,000 square feet of storage space and 8,000 square feet of remeasurement upon lease expirations.	
(2)	The venture is reviewing plans to renovate the common areas and will provide a budget upon approval.	
DISPOSITIONS
For the period from January 1, 2016 through September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	 	 	  	 	 	  	Gross	 	  	Net Cash	 	  	 	 	
Property	  	Date Disposed	 	  	Square Feet	 	  	Sales Price	 	  	Proceeds	 	  	Book Gain	 	
415 Main Street	  	 	February 1, 2016	  	  	 	231,028	  	  	$	105,360,000	  	  	$	104,868,000	  	  	$	60,803,000	  	
Broad Run Business Park (land parcel)	  	 	August 16, 2016	  	  	 	N/A	  	  	 	18,019,000	  	  	 	17,934,000	  	  	 	12,983,000	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Dispositions	  	 	 	 	  	 	231,028	  	  	$	123,379,000	  	  	$	122,802,000	  	  	$	73,786,000	(1) 	

(1)	Excludes approximately $6,820,000 of gain on sale of real estate recognized during the three months ended March 31, 2016 related to a previously deferred gain amount from a 2014 sale of real estate.	
 
44

THIRD QUARTER 2016
 
VALUE CREATION PIPELINE—CONSTRUCTION IN PROGRESS (1)
as of September 30, 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
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 (2)	 	 	Amount
Drawn at
9/30/2016 (2)	 	 	Estimated
Future Equity
Requirement (2)	 	 	Percentage
Leased (3)	 	 	Percentage
Placed in
service (4)	 	
Office and Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
1265 Main Street (50% ownership)	 	 	Q4 2016	  	 	 	Q4 2016	  	 	 	Waltham, MA	  	 	 	1	  	 	 	115,000	  	 	$	22,374,119	  	 	$	26,090,000	  	 	$	—  	  	 	$	—  	  	 	$	3,715,881	  	 	 	100	% 	 	 	—  	  	
Prudential Center Retail Expansion	 	 	Q1 2016	  	 	 	Q3 2017	  	 	 	Boston, MA	  	 	 	—  	  	 	 	15,000	  	 	 	9,108,230	  	 	 	10,760,000	  	 	 	—  	  	 	 	—  	  	 	 	1,651,770	  	 	 	100	% 	 	 	39	% 	
888 Boylston Street	 	 	Q3 2016	  	 	 	Q4 2017	  	 	 	Boston, MA	  	 	 	1	  	 	 	425,000	  	 	 	227,871,847	  	 	 	271,500,000	  	 	 	—  	  	 	 	—  	  	 	 	43,628,153	  	 	 	71	% 	 	 	14	% 	
Salesforce Tower (95% ownership)	 	 	Q4 2017	  	 	 	Q1 2019	  	 	 	San Francisco, CA	  	 	 	1	  	 	 	1,400,000	  	 	 	638,148,808	  	 	 	1,073,500,000	  	 	 	(25,389,074	)(5) 	 	 	2,009,206	(5) 	 	 	462,749,472	  	 	 	59	% 	 	 	—  	  	
The Hub on Causeway (50% ownership)	 	 	Q4 2018	  	 	 	Q4 2019	  	 	 	Boston, MA	  	 	 	1	  	 	 	385,000	  	 	 	21,936,753	  	 	 	141,870,000	  	 	 	—  	  	 	 	—  	  	 	 	119,933,247	  	 	 	33	% 	 	 	—  	  	
Dock72 (50% ownership)	 	 	Q2 2018	  	 	 	Q1 2020	  	 	 	Brooklyn, NY	  	 	 	1	  	 	 	670,000	  	 	 	29,723,774	  	 	 	204,900,000	  	 	 	—  	  	 	 	—  	  	 	 	175,176,226	  	 	 	33	% 	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Office Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	5	  	 	 	3,010,000	  	 	$	949,163,531	  	 	$	1,728,620,000	  	 	$	(25,389,074	) 	 	$	2,009,206	  	 	$	806,854,749	  	 	 	54	% 	 	 	4	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Residential	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Cambridge Residential / 88 Ames (274 units)	 	 	Q1 2018	  	 	 	Q1 2019	  	 	 	Cambridge, MA	  	 	 	1	  	 	 	164,000	  	 	$	20,317,513	  	 	$	140,170,000	  	 	$	—  	  	 	$	—  	  	 	$	119,852,487	  	 	 	N/A	  	 	 	—  	  	
Reston Signature Site (508 units)	 	 	Q4 2017	  	 	 	Q2 2020	  	 	 	Reston, VA	  	 	 	1	  	 	 	490,000	  	 	 	62,935,559	(6) 	 	 	234,854,025	(6) 	 	 	—  	  	 	 	—  	  	 	 	171,918,466	  	 	 	N/A	  	 	 	—  	  	
Reston Signature Site - Retail	 	 	 	 	 	 	 	 	 	 	 	 	 	 	—  	  	 	 	24,600	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	81	% 	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Residential Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	2	  	 	 	678,600	  	 	$	83,253,072	  	 	$	375,024,025	  	 	$	—  	  	 	$	—  	  	 	$	291,770,953	  	 	 	59	%(7) 	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Redevelopment Properties	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reservoir Place North	 	 	Q3 2017	  	 	 	Q3 2017	  	 	 	Waltham, MA	  	 	 	1	  	 	 	73,000	  	 	$	14,999,489	  	 	$	24,510,000	  	 	$	—  	  	 	$	—  	  	 	$	9,510,511	  	 	 	—  	  	 	 	4	% 	
159 East 53rd (55% ownership) (8)	 	 	Q2 2018	  	 	 	Q4 2019	  	 	 	New York, NY	  	 	 	—  	  	 	 	220,000	  	 	 	8,245,649	  	 	 	106,000,000	  	 	 	—  	  	 	 	—  	  	 	 	97,754,351	  	 	 	—  	  	 	 	—  	  	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Redevelopment Properties under Construction	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	  	 	 	293,000	  	 	$	23,245,138	  	 	$	130,510,000	  	 	$	—  	  	 	$	—  	  	 	$	107,264,862	  	 	 	—  	  	 	 	3	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total Properties Under Construction and Redevelopment	 	 	 	 	 	 	 	 	 	 	 	 	 	 	8	  	 	 	3,981,600	  	 	$	1,055,661,741	  	 	$	2,234,154,025	  	 	$	(25,389,074	) 	 	$	2,009,206	  	 	$	1,205,890,564	  	 	 	49	%(7) 	 	 	3	% 	
 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
PROJECTS FULLY PLACED IN-SERVICE DURING 2016

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Actual /
Estimated
Initial
Occupancy	  	Actual /
Estimated
Stabilization
Date	  	Location	  	# of
Buildings	 	  	Square
feet	 	  	Investment
to Date (2)	 	  	Estimated
Total
Investment (2)	 	  	Total
Financing (2)	 	  	Amount
Drawn at
9/30/2016 (2)	 	  	Estimated
Future Equity
Requirement (2)	 	  	Percentage
Leased (3)	 	
804 Carnegie Center	  	Q2 2016	  	Q2 2016	  	Princeton, NJ	  	 	1	  	  	 	130,000	  	  	$	45,906,709	  	  	$	47,000,000	  	  	$	—  	  	  	$	—  	  	  	$	1,093,291	  	  	 	100	% 	
601 Massachusetts Avenue	  	Q3 2015	  	Q1 2017	  	Washington, DC	  	 	1	  	  	 	478,883	  	  	 	299,663,325	  	  	 	339,760,000	  	  	 	—  	  	  	 	—  	  	  	 	40,096,675	  	  	 	90	% 	
10 CityPoint	  	Q2 2016	  	Q2 2016	  	Waltham, MA	  	 	1	  	  	 	241,460	  	  	 	89,681,015	  	  	 	100,400,000	  	  	 	—  	  	  	 	—  	  	  	 	10,718,985	  	  	 	97	% 	
 	  	 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
Total Projects placed In-Service	  	 	  	 	  	 	  	 	3	  	  	 	850,343	  	  	$	435,251,049	  	  	$	487,160,000	  	  	$	—  	  	  	$	—  	  	  	$	51,908,951	  	  	 	94	% 	
 	  	 	  	 	  	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	
IN-SERVICE PROPERTIES HELD FOR REDEVELOPMENT

 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	  	Sub Market	 	  	# of
Buildings	 	  	Existing
Square
Feet	 	  	Leased %	 	 	Annualized
Rental
Obligations
Per Leased
SF (9)	 	  	Encumbered
with secured
debt (Y/N)	  	Central
Business
District
(CBD) or
Suburban (S)	  	Incremental
Estimated
Future SF (10)	 	
North First Business Park	  	 	San Jose CA	  	  	 	5	  	  	 	190,636	  	  	 	100.0	% 	 	$	18.87	  	  	N	  	S	  	 	1,359,364	  	
3625-3635 Peterson Way	  	 	Santa Clara CA	  	  	 	1	  	  	 	218,366	  	  	 	100.0	% 	 	 	21.84	  	  	N	  	S	  	 	413,690	  	
 	  	 	 	 	  	 	 	 	  	 	 	 	  	 	 	 	 	 	 	 	  	 	  	 	  	 	 	 	
Total Properties held for Redevelopment	  	 	 	 	  	 	6	  	  	 	409,002	  	  	 	100.0	% 	 	$	20.46	  	  	 	  	 	  	 	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 capitalize interest has commenced.	
(2)	Represents the Company’s share. Includes income (loss) and interest carry.	
(3)	Represents percentage leased as of October 21, 2016, 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 our 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 until the principal and interest are repaid. As of September 30, 2016, the Company has funded $2,009,206.	
(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)	Includes approximately 9,000 square feet of retail space from Cambridge Residential / 88 Ames residential development which is 0% leased.	
(8)	Formerly the low-rise portion of 601 Lexington Avenue.	
(9)	For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.	
(10)	Incremental Future Square Footage is included in Approximate Developable Square Feet of Value Creation Pipeline—Owned Land Parcels on page 46.	
 
45

THIRD QUARTER 2016
 
VALUE CREATION PIPELINE
as of September 30, 2016
Owned Land Parcels

 	 	 	 	 	
 	  	Approximate	 	
 	  	Developable	 	
Location	  	Square Feet	 	
San Jose, CA (1)	  	 	2,199,000	  	
Reston, VA	  	 	1,160,000	  	
Waltham, MA	  	 	805,000	  	
Springfield, VA	  	 	800,000	  	
Dulles, VA (2)	  	 	310,000	  	
Rockville, MD	  	 	759,000	  	
Santa Clara, CA (1)	  	 	414,000	  	
Gaithersburg, MD (3)	  	 	240,000	  	
Washington, DC (50% ownership)	  	 	520,000	  	
Marlborough, MA	  	 	400,000	  	
Annapolis, MD (50% ownership)	  	 	300,000	  	
Andover, MA	  	 	110,000	  	
 	  	 	 	 	
 	  	 	8,017,000	  	
 	  	 	 	 	
Land Purchase Options

 	 	 	 	 	
 	  	Approximate	 	
 	  	Developable	 	
Location	  	Square Feet	 	
Princeton, NJ	  	 	1,650,000	  	
Boston, MA (50% ownership)	  	 	1,415,000	  	
Boston, MA	  	 	1,300,000	  	
Cambridge, MA	  	 	940,000	  	
Brooklyn, NY (50% ownership)	  	 	600,000	  	
San Francisco, CA	  	 	TBD	  	
 	  	 	 	 	
 	  	 	5,905,000	  	

(1)	Excludes the existing square footage related to in-service properties being held for future re-development included on page 45.	
(2)	On August 16, 2016, the Company completed the sale of a parcel of land within its Broad Run Business Park property located in Loudoun County, Virginia for a gross sale price of approximately $18.0 million. Net cash proceeds totaled approximately $17.9 million, resulting in a gain on sale of real estate totaling approximately $13.0 million.	
(3)	On September 27, 2016, the Company executed a letter of intent for the sale of the remaining parcel of land at its Washingtonian North property located in Gaithersburg, Maryland. The letter of intent caused the Company to reevaluate its strategy for the land and based on a shorter than expected hold period, the Company reduced the carrying value of the land to the estimated net sales price and recognized an impairment loss of approximately $1.8 million during the three months ended September 30, 2016.	
 
46

THIRD QUARTER 2016
 
DEFINITIONS
This section contains definitions of certain non-GAAP financial measures and other terms that we use in this supplemental package 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. 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 certain of these measures (1) on a “Combined” basis, which is defined as the consolidated amount, plus the Company’s share of the measure from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), and (2) showing “ BXP’s Share ” of the Combined amount, which is defined as the Combined amount, minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). Management believes that the “Combined” measures provide useful information to investors regarding the Company’s financial condition and/or results of operations because they include the Company’s share of the applicable amount from unconsolidated joint ventures and, for “BXP’s Share” of the Combined amount, exclude the Company’s partners’ share from consolidated joint ventures, in each case presented on the same basis. 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 “Combined” amounts and “BXP’s Share” of any Combined amounts 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, partnership agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, liquidations, etc. As a result, presentations of measures on a Combined basis and showing BXP’s Share of the Combined amount should be considered 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 rental obligations at the end of the reporting period, including contractual base rents (but excluding percentage rent) and budgeted reimbursements from tenants under existing leases, multiplied by twelve (12). These annualized amounts exclude rent abatements.
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 and (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 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 periods have not yet ended, 2014, 2015 and 2016 MYLTIP Units are not included. The Company also presents  BXP’s Share of Combined Market Capitalization , which is calculated in a similar manner, except that BXP’s Share of Combined 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 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 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 FAD is not intended 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 stockholders. 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

THIRD QUARTER 2016
 
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.
FFO presented by the Company 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. The Company believes that in order to facilitate a clear understanding of its 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 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. In-service Office properties exclude hotel and residential properties.
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, impairment loss, depreciation and amortization, interest expense, losses from early extinguishments of debt and losses from interest rate contracts, less (2) gains on sales of real estate, development and management services income, income from unconsolidated joint ventures, interest and other income and gains (losses) from investments in securities. In some cases the Company also presents (1) NOI – cash basis, which is NOI after eliminating the effects of straight-lining of rent, fair value lease revenue and lease transaction costs that qualify as rent inducements in accordance with GAAP and (2) NOI and NOI – cash basis, in each case excluding lease termination fees.
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., 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 basis allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues. 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 lease termination fees provides investors with additional information regarding operating performance at a property level that allow them to compare operating performance between periods without taking into account lease termination fees, 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
AT THE COMPANY    
Michael LaBelle    
Executive Vice President,
Chief Financial Officer and Treasurer    
(617) 236-3352    
Arista Joyner
Investor Relations Manager
(617) 236-3343
BOSTON PROPERTIES ANNOUNCES
THIRD QUARTER 2016 RESULTS
BOSTON, MA, October 25, 2016 - Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the third quarter ended September 30, 2016.
Net income attributable to common shareholders was $76.8 million for the quarter ended September 30, 2016, compared to $184.1 million for the quarter ended September 30, 2015. Net income attributable to common shareholders per share (EPS) for the quarter ended September 30, 2016 was $0.50 basic and $0.50 on a diluted basis. This compares to EPS for the quarter ended September 30, 2015 of $1.20 basic and $1.20 on a diluted basis. Net income attributable to common shareholders for the quarter ended September 30, 2016 includes gains on sales of real estate aggregating approximately $13.0 million, or $0.08 per share basic and $0.08 per share on a diluted basis, compared to $199.5 million, or $0.58 per share basic and $0.58 per share on a diluted basis, for the quarter ended September 30, 2015. In addition, net income attributable to common shareholders for the quarter ended September 30, 2016 includes accelerated depreciation expense of approximately $50.8 million, or $(0.17) per share basic and $(0.17) per share on a diluted basis, related to the redevelopment of the Company’s 601 Lexington Avenue property. The weighted-average number of basic and diluted shares outstanding totaled approximately 153,754,000 and 154,136,000, respectively, for the quarter ended September 30, 2016 and 153,595,000 and 153,786,000, respectively, for the quarter ended September 30, 2015.    
 
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Funds from Operations (FFO) for the quarter ended September 30, 2016 were $219.6 million, or $1.43 per share basic and $1.42 per share diluted. This compares to FFO for the quarter ended September 30, 2015 of $217.3 million, or $1.41 per share basic and $1.41 per share diluted.
The Company’s reported FFO of $1.42 per share diluted was greater than the mid-point of the guidance previously provided of $1.40-$1.42 per share diluted primarily due to better than expected portfolio operations of $0.02 per share, partially offset by a $(0.01) per share impairment loss related to the anticipated sale of the remaining parcel of land at the Company’s Washingtonian North property located in Gaithersburg, Maryland.
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 September 30, 2016. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
As of September 30, 2016, the Company’s portfolio consisted of 174 properties aggregating approximately 47.7 million square feet, including eight properties under construction/redevelopment totaling approximately 4.0 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 September 30, 2016 was 89.6%.
Significant events during the third quarter included:
 
 	•	 	On July 1, 2016, the Company entered the Los Angeles market through its acquisition of a 49.8% interest in an existing joint venture that owns and operates Colorado Center located in Santa Monica, California for a gross purchase price of approximately $511.1 million, or approximately $503.6 million in cash net of credits for free rent, unfunded leasing costs and other adjustments. 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. The property is 66% leased.	
 
 	•	 	On August 16, 2016, the Company completed the sale of a parcel of land within its Broad Run Business Park property located in Loudoun County, Virginia for a gross sale price of approximately $18.0 million. Net cash proceeds totaled approximately $17.9 million, resulting in a gain on sale of real estate totaling approximately $13.0 million.	
 
 	•	 	On August 17, 2016, the Company’s Operating Partnership completed a public offering of $1.0 billion in aggregate principal amount of its 2.750% senior unsecured notes due 2026. The notes were priced at 99.271% of the principal amount to yield an effective rate, including financing fees and the impact of the settlement of certain forward-starting interest rate swap contracts, of approximately 3.495% to maturity. The notes will mature on October 1, 2026, unless earlier redeemed. The aggregate net proceeds from the offering were approximately $984.7 million after deducting underwriting discounts and transaction expenses.	
 
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 	•	 	On August 17, 2016, in conjunction with the Company’s Operating Partnership’s offering of senior unsecured notes, the Company terminated forward-starting interest rate swap contracts which fixed the ten-year swap rate at a weighted-average rate of approximately 2.423% per annum on notional amounts aggregating $550.0 million. The Company cash-settled the contracts and made cash payments to the counterparties aggregating approximately $49.3 million. The Company recognized approximately $0.1 million of losses on interest rate contracts during the three months ended September 30, 2016 related to the partial ineffectiveness of the interest rate contracts. The Company will reclassify into earnings over the ten-year term of the 2.750% senior unsecured notes due 2026 as an increase to interest expense approximately $49.2 million (or approximately $4.9 million per year) of the amounts recorded on the consolidated balance sheets within accumulated other comprehensive loss, which represents the effective portion of the applicable interest rate contracts.	
 
 	•	 	On August 19, 2016, the consolidated entity in which the Company has a 55% interest and that owns 601 Lexington Avenue located in New York City commenced the redevelopment of the six-story low-rise office and retail building component of the complex. The redeveloped portion of the low-rise building will contain approximately 195,000 net rentable square feet of Class A office space and approximately 25,000 net rentable square feet of retail space. The Company recorded approximately $50.8 million of accelerated depreciation expense for the portion of the complex to be demolished.	
 
 	•	 	On September 1, 2016, the Company used a portion of the net proceeds from its Operating Partnership’s offering of senior unsecured notes and available cash to repay the mortgage loan collateralized by its 599 Lexington Avenue property located in New York City totaling $750.0 million. The mortgage loan bore interest at a fixed rate of 5.57% per annum (5.41% per annum GAAP interest rate) and was scheduled to mature on March 1, 2017. There was no prepayment penalty. The Company recognized a gain from early extinguishment of debt totaling approximately $0.4 million consisting of the acceleration of the remaining balance related to the effective portion of a previous interest rate hedging program included within accumulated other comprehensive loss, offset by the write-off of unamortized deferred financing costs.	
 
 	•	 	On September 1, 2016, the Company used a portion of the net proceeds from its Operating Partnership’s offering of senior unsecured notes and available cash to repay the mortgage loan collateralized by its Embarcadero Center Four property located in San Francisco, California totaling approximately $344.8 million. The mortgage loan bore interest at a fixed rate of 6.10% per annum (7.02% per annum GAAP interest rate) and was scheduled to mature on December 1, 2016. There was no prepayment penalty. The Company recognized a loss from early extinguishment of debt totaling approximately $0.7 million consisting of the write-off of unamortized deferred financing costs and the acceleration of the remaining balance related to the effective portion of a previous interest rate hedging program included within accumulated other comprehensive loss.	
 
 	•	 	On September 16, 2016, the Company partially placed in-service 888 Boylston Street, a Class A office project with approximately 425,000 net rentable square feet located in Boston, Massachusetts. The property is 71% leased.	
 
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 	•	 	On September 27, 2016, the Company executed a letter of intent for the sale of the remaining parcel of land at its Washingtonian North property located in Gaithersburg, Maryland. The letter of intent caused the Company to reevaluate its strategy for the land and based on a shorter than expected hold period, the Company reduced the carrying value of the land to the estimated net sales price and recognized an impairment loss of approximately $1.8 million during the three months ended September 30, 2016.	
Transactions completed subsequent to September 30, 2016:
 
 	•	 	On October 1, 2016, a joint venture in which the Company has a 50% interest completed and fully placed in-service 1265 Main Street, a Class A office project with approximately 115,000 net rentable feet located in Waltham, Massachusetts. The property is 100% leased.	
 
 	•	 	On October 20, 2016, the Company and its partner in the unconsolidated joint venture that owns Metropolitan Square located in Washington, DC, completed the sale of an 80% interest in the joint venture for a gross sale price of approximately $288.1 million, including the assumption by the buyer of its pro rata share of the mortgage loan collateralized by the property totaling approximately $133.4 million and certain unfunded leasing costs totaling approximately $5.7 million. Prior to the sale, the Company owned a 51% interest and its partner owned a 49% interest in the joint venture. Following the sale, the Company continues to own a 20% interest in the joint venture with the buyer owning the remaining 80%. Metropolitan Square is an approximately 607,000 net rentable square foot Class A office property.	
EPS and FFO per Share Guidance:
The Company’s guidance for the fourth quarter, full year 2016 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 2016 to $2.98 - $3.00 per share from $3.04 - $3.11 per share. This is a decrease of approximately $0.09 per share at the mid-point of the Company’s guidance consisting of $0.19 per share of greater than budgeted depreciation expense primarily due to the redevelopment of the low-rise portion of 601 Lexington Avenue that commenced during the third quarter of 2016, partially offset by $0.08 per share from the gain on sale of a land parcel
 
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during the third quarter of 2016 and $0.03 per share of reduced interest expense resulting from refinancing activity during the third quarter of 2016. In addition, the Company has updated its projected guidance for FFO per share (diluted) for the full year 2016 to $5.97 - $5.99 per share from $5.92 - $5.99 per share. This is an increase of approximately $0.03 per share at the mid-point of the Company’s guidance primarily consisting of $0.03 per share due to higher portfolio performance.

 	  	Fourth Quarter 2016	 	  	Full Year 2016	 	
 	  	Low	 	  	 	  	High	 	  	Low	 	  	 	  	-High	 	
Projected EPS (diluted)	  	$	0.64	  	  	-	  	$	0.66	  	  	$	2.98	  	  	-	  	$	3.00	  	
Add:	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	
Projected Company Share of Real Estate Depreciation and Amortization	  	 	0.85	  	  	-	  	 	0.85	  	  	 	3.46	  	  	-	  	 	3.46	  	
Less:	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	
Projected Company Share of Gains on Sales of Real Estate	  	 	—	  	  	-	  	 	—	  	  	 	0.47	  	  	-	  	 	0.47	  	
 	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	
Projected FFO per Share (diluted)	  	$	1.49	  	  	-	  	$	1.51	  	  	$	5.97	  	  	-	  	$	5.99	  	
 	  	 	 	 	  	 	  	 	 	 	  	 	 	 	  	 	  	 	 	 	
The Company’s guidance for the full year 2017 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. In addition, the estimates for the full year 2017 when compared to the full year 2016 include, among other assumptions, (1) an increase in the Company’s share of Combined Same Property NOI of 2.0% - 3.5% resulting in an incremental $0.23 per share at the mid-point, (2) an incremental contribution of $0.14 per share at the mid-point from the Company’s development deliveries offset by the impact of removing properties from service for redevelopment and a full-year contribution from 2016 acquisitions, (3) interest expense savings of $0.12 per share at the mid-point due to 2016 refinancing activities and (4) an increase in development and management service income of $0.01 per share. These items are offset by (1) a reduction in Gains on Sales of Real Estate of $0.47 per share with no sales assumed in 2017, (2) a decrease in lease termination fees of approximately $0.31 per share and (3) increased general and administrative expenses of $0.03 per share at the mid-point.

 	  	Full Year 2017	 	
 	  	Low	 	  	 	  	High	 	
Projected EPS (diluted)	  	$	2.58	  	  	-	  	$	2.76	  	
Add:	  	 	 	 	  	 	  	 	 	 	
Projected Company Share of Real Estate Depreciation and Amortization	  	 	3.47	  	  	-	  	 	3.47	  	
Less:	  	 	 	 	  	 	  	 	 	 	
Projected Company Share of Gains on Sales of Real Estate	  	 	—	  	  	-	  	 	—	  	
 	  	 	 	 	  	 	  	 	 	 	
Projected FFO per Share (diluted)	  	$	6.05	  	  	-	  	$	6.23	  	
 	  	 	 	 	  	 	  	 	 	 	
Boston Properties will host a conference call on Wednesday, October 26, 2016 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2016 results, the fourth quarter 2016, full fiscal year 2016 and full fiscal year 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 23629459. A replay of the conference call will be available through November 11, 2016, by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 23629459. 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.
 
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Additionally, a copy of Boston Properties’ third quarter 2016 “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 .
Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of primarily Class A office space, five retail properties, four residential properties (including two 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,” “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 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 fourth quarter 2016, full fiscal year 2016 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)

 	  	September 30, 2016	 	 	December 31, 2015	 	
 	  	(in thousands, except for share and par value
amounts)	 	
ASSETS	  	 	 	 	 	 	 	 	
Real estate, at cost	  	$	18,704,856	  	 	$	18,465,405	  	
Construction in progress	  	 	954,013	  	 	 	763,935	  	
Land held for future development	  	 	243,887	  	 	 	252,195	  	
Less: accumulated depreciation	  	 	(4,113,553	) 	 	 	(3,925,894	) 	
 	  	 	 	 	 	 	 	 	
Total real estate	  	 	15,789,203	  	 	 	15,555,641	  	
Cash and cash equivalents	  	 	419,323	  	 	 	723,718	  	
Cash held in escrows	  	 	63,980	  	 	 	73,790	  	
Investments in securities	  	 	23,022	  	 	 	20,380	  	
Tenant and other receivables, net	  	 	76,258	  	 	 	97,865	  	
Accrued rental income, net	  	 	785,569	  	 	 	754,883	  	
Deferred charges, net	  	 	680,192	  	 	 	704,867	  	
Prepaid expenses and other assets	  	 	176,693	  	 	 	185,118	  	
Investments in unconsolidated joint ventures	  	 	775,659	  	 	 	235,224	  	
 	  	 	 	 	 	 	 	 	
Total assets	  	$	18,789,899	  	 	$	18,351,486	  	
 	  	 	 	 	 	 	 	 	
LIABILITIES AND EQUITY	  	 	 	 	 	 	 	 	
Liabilities:	  	 	 	 	 	 	 	 	
Mortgage notes payable, net	  	$	2,077,707	  	 	$	3,435,242	  	
Unsecured senior notes, net	  	 	7,243,767	  	 	 	5,264,819	  	
Unsecured line of credit	  	 	—  	  	 	 	—  	  	
Mezzanine notes payable	  	 	307,448	  	 	 	308,482	  	
Outside members’ notes payable	  	 	180,000	  	 	 	180,000	  	
Accounts payable and accrued expenses	  	 	312,979	  	 	 	274,709	  	
Dividends and distributions payable	  	 	113,038	  	 	 	327,320	  	
Accrued interest payable	  	 	234,628	  	 	 	190,386	  	
Other liabilities	  	 	461,079	  	 	 	483,601	  	
 	  	 	 	 	 	 	 	 	
Total liabilities	  	 	10,930,646	  	 	 	10,464,559	  	

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 September 30, 2016 and December 31, 2015	  	 	200,000	  	 	 	200,000	  	
Common stock, $0.01 par value, 250,000,000 shares authorized, 153,851,912 and 153,658,866 issued and 153,773,012 and 153,579,966 outstanding at September 30, 2016 and December 31, 2015, respectively	  	 	1,538	  	 	 	1,536	  	
Additional paid-in capital	  	 	6,326,580	  	 	 	6,305,687	  	
Dividends in excess of earnings	  	 	(725,522	) 	 	 	(780,952	) 	
Treasury common stock at cost, 78,900 shares at September 30, 2016 and December 31, 2015	  	 	(2,722	) 	 	 	(2,722	) 	
Accumulated other comprehensive loss	  	 	(73,943	) 	 	 	(14,114	) 	
 	  	 	 	 	 	 	 	 	
Total stockholders’ equity attributable to Boston Properties, Inc.	  	 	5,725,931	  	 	 	5,709,435	  	
Noncontrolling interests:	  	 	 	 	 	 	 	 	
Common units of the Operating Partnership	  	 	608,280	  	 	 	603,092	  	
Property partnerships	  	 	1,525,042	  	 	 	1,574,400	  	
 	  	 	 	 	 	 	 	 	
Total equity	  	 	7,859,253	  	 	 	7,886,927	  	
 	  	 	 	 	 	 	 	 	
Total liabilities and equity	  	$	18,789,899	  	 	$	18,351,486	  	

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

 	  	Three months ended
September 30,	 	 	Nine months ended
September 30,	 	
 	  	2016	 	 	2015	 	 	2016	 	 	2015	 	
 	  	(in thousands, except for per share amounts)	 	
Revenue	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Base rent	  	$	489,312	  	 	$	494,300	  	 	$	1,518,826	  	 	$	1,471,591	  	
Recoveries from tenants	  	 	92,560	  	 	 	91,544	  	 	 	267,852	  	 	 	266,932	  	
Parking and other	  	 	24,638	  	 	 	25,509	  	 	 	75,576	  	 	 	76,849	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total rental revenue	  	 	606,510	  	 	 	611,353	  	 	 	1,862,254	  	 	 	1,815,372	  	
Hotel revenue	  	 	12,354	  	 	 	12,619	  	 	 	33,919	  	 	 	35,107	  	
Development and management services	  	 	6,364	  	 	 	5,912	  	 	 	18,586	  	 	 	16,102	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	  	 	625,228	  	 	 	629,884	  	 	 	1,914,759	  	 	 	1,866,581	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Expenses	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental	  	 	228,560	  	 	 	219,796	  	 	 	665,670	  	 	 	655,610	  	
Hotel	  	 	8,118	  	 	 	8,125	  	 	 	23,730	  	 	 	24,196	  	
General and administrative	  	 	25,165	  	 	 	20,944	  	 	 	79,936	  	 	 	72,019	  	
Transaction costs	  	 	249	  	 	 	254	  	 	 	1,187	  	 	 	789	  	
Impairment loss	  	 	1,783	  	 	 	—  	  	 	 	1,783	  	 	 	—  	  	
Depreciation and amortization	  	 	203,748	  	 	 	153,015	  	 	 	516,371	  	 	 	475,082	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total expenses	  	 	467,623	  	 	 	402,134	  	 	 	1,288,677	  	 	 	1,227,696	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating income	  	 	157,605	  	 	 	227,750	  	 	 	626,082	  	 	 	638,885	  	
Other income (expense)	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income from unconsolidated joint ventures	  	 	1,464	  	 	 	2,647	  	 	 	5,489	  	 	 	20,559	  	
Interest and other income	  	 	3,628	  	 	 	3,637	  	 	 	6,657	  	 	 	6,337	  	
Gains (losses) from investments in securities	  	 	976	  	 	 	(1,515	) 	 	 	1,713	  	 	 	(1,146	) 	
Interest expense	  	 	(104,641	) 	 	 	(108,727	) 	 	 	(314,953	) 	 	 	(326,018	) 	
Losses from early extinguishments of debt	  	 	(371	) 	 	 	—  	  	 	 	(371	) 	 	 	—  	  	
Losses from interest rate contracts	  	 	(140	) 	 	 	—  	  	 	 	(140	) 	 	 	—  	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	123,792	  	 	 	324,477	  	 	 	338,617	  	
Gains on sales of real estate	  	 	12,983	  	 	 	199,479	  	 	 	80,606	  	 	 	294,563	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	 	71,504	  	 	 	323,271	  	 	 	405,083	  	 	 	633,180	  	
Net income attributable to noncontrolling interests	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships	  	 	17,225	  	 	 	(115,240	) 	 	 	(53	) 	 	 	(139,712	) 	
Noncontrolling interest—redeemable preferred units of the Operating Partnership	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	(6	) 	
Noncontrolling interest—common units of the Operating Partnership	  	 	(9,387	) 	 	 	(21,302	) 	 	 	(42,120	) 	 	 	(50,906	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc.	  	 	79,342	  	 	 	186,729	  	 	 	362,910	  	 	 	442,556	  	
Preferred dividends	  	 	(2,589	) 	 	 	(2,647	) 	 	 	(7,796	) 	 	 	(7,854	) 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	184,082	  	 	$	355,114	  	 	$	434,702	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	0.50	  	 	$	1.20	  	 	$	2.31	  	 	$	2.83	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of common shares outstanding	  	 	153,754	  	 	 	153,595	  	 	 	153,681	  	 	 	153,426	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Net income	  	$	0.50	  	 	$	1.20	  	 	$	2.31	  	 	$	2.82	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average number of common and common equivalent shares outstanding	  	 	154,136	  	 	 	153,786	  	 	 	153,971	  	 	 	153,825	  	

–more–

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

 	  	Three months ended
September 30,	 	 	Nine months ended
September 30,	 	
 	  	2016	 	 	2015	 	 	2016	 	 	2015	 	
 	  	(in thousands, except for per share amounts)	 	
Net income attributable to Boston Properties, Inc. common shareholders	  	$	76,753	  	 	$	184,082	  	 	$	355,114	  	 	$	434,702	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Preferred dividends	  	 	2,589	  	 	 	2,647	  	 	 	7,796	  	 	 	7,854	  	
Noncontrolling interest - common units of the Operating Partnership	  	 	9,387	  	 	 	21,302	  	 	 	42,120	  	 	 	50,906	  	
Noncontrolling interest - redeemable preferred units of the Operating Partnership	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	6	  	
Noncontrolling interests in property partnerships	  	 	(17,225	) 	 	 	115,240	  	 	 	53	  	 	 	139,712	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gains on sales of real estate	  	 	12,983	  	 	 	199,479	  	 	 	80,606	  	 	 	294,563	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before gains on sales of real estate	  	 	58,521	  	 	 	123,792	  	 	 	324,477	  	 	 	338,617	  	
Add:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Depreciation and amortization	  	 	203,748	  	 	 	153,015	  	 	 	516,371	  	 	 	475,082	  	
Noncontrolling interests in property partnerships’ share of depreciation and amortization	  	 	(40,907	) 	 	 	(21,405	) 	 	 	(79,831	) 	 	 	(70,147	) 	
Company’s share of depreciation and amortization from unconsolidated joint ventures	  	 	9,128	  	 	 	3,808	  	 	 	18,242	  	 	 	2,562	  	
Corporate-related depreciation and amortization	  	 	(393	) 	 	 	(334	) 	 	 	(1,119	) 	 	 	(1,017	) 	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interests in property partnerships (2)	  	 	(17,225	) 	 	 	14,122	  	 	 	53	  	 	 	38,594	  	
Noncontrolling interest - redeemable preferred units of the Operating Partnership	  	 	—  	  	 	 	—  	  	 	 	—  	  	 	 	6	  	
Preferred dividends	  	 	2,589	  	 	 	2,647	  	 	 	7,796	  	 	 	7,854	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.)	  	 	244,733	  	 	 	242,107	  	 	 	770,291	  	 	 	698,643	  	
Less:	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations	  	 	25,169	  	 	 	24,846	  	 	 	79,440	  	 	 	72,278	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Funds from operations attributable to Boston Properties, Inc. common shareholders	  	$	219,564	  	 	$	217,261	  	 	$	690,851	  	 	$	626,365	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Boston Properties, Inc.’s percentage share of funds from operations - basic	  	 	89.72	% 	 	 	89.74	% 	 	 	89.69	% 	 	 	89.65	% 	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - basic	  	 	153,754	  	 	 	153,595	  	 	 	153,681	  	 	 	153,426	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share basic	  	$	1.43	  	 	$	1.41	  	 	$	4.50	  	 	$	4.08	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Weighted average shares outstanding - diluted	  	 	154,136	  	 	 	153,786	  	 	 	153,971	  	 	 	153,825	  	
 	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
FFO per share diluted	  	$	1.42	  	 	$	1.41	  	 	$	4.49	  	 	$	4.07	  	

–more–

(1)	Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, 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.	
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.
 
(2)	For the three and nine months ended September 30, 2015, excludes the noncontrolling interests in property partnerships’ share of a gain on sale of real estate totaling approximately $101.1 million.	
 
–more–

BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES

 	  	% Leased by Location	 	
 	  	September 30, 2016	 	 	December 31, 2015	 	
Boston	  	 	90.0	% 	 	 	90.6	% 	
New York	  	 	90.1	% 	 	 	91.5	% 	
San Francisco and Los Angeles	  	 	87.3	% 	 	 	93.8	% 	
Washington, DC	  	 	90.1	% 	 	 	91.0	% 	
 	  	 	 	 	 	 	 	 	
Total Portfolio	  	 	89.6	% 	 	 	91.4	% 	

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