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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K/A

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 21, 2003

Boston Properties Limited Partnership
(Exact name of Registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)	 	0-50209
(Commission
File Number)	 	04-3372948
(I.R.S. employer
Identification No.)	

111 Huntington Avenue
Boston, Massachusetts 02199
(Address of principal executive offices and zip code)	
Registrant's telephone number, including area code:
(617) 236-3300

ITEM 7.    Financial Statements, Pro Forma Financial Information and Exhibits.

(c)
Exhibits. The following exhibits are being furnished herewith:
Exhibit No.

	 	 
	
99.1	 	Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2003.	
99.2	 	Press release dated November 6, 2003.	

ITEM 12.    Results of Operations and Financial Condition.

        This Current Report on Form 8-K/A amends the Current Report on Form 8-K furnished by Boston Properties Limited Partnership to the Securities and Exchange Commission on October 22, 2003. The information in this Current Report on Form 8-K/A is furnished under Item 12—"Results of Operations and Financial Condition." Such information, including the exhibits attached 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 Current Report on Form 8-K/A 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 21, 2003, 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 2003, which included recognition of a non-cash charge of $9.8 million under paragraphs 9 and 10 of SFAS No. 150 "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity." Those provisions of SFAS No. 150 required that for the period ended September 30, 2003 certain financial instruments (e.g., minority interests in equity of consolidated joint ventures) be reclassified from either equity or mezzanine presentation to liabilities on the parent company's financial statements measured at fair value. One of the Company's consolidated joint ventures fell within the scope of SFAS No. 150, which required the Company to record a $9.8 million non-cash charge to account for the cumulative effect of adjusting the joint venture partner's outside minority interest to fair value. The press release also referred to certain supplemental information that was made available on the Company's website. Both the press release and the supplemental information were included as exhibits to Boston Properties Limited Partnership's Current Report on Form 8-K that was furnished to the Securities and Exchange Commission on October 22, 2003.

        On October 29, 2003, the Financial Accounting Standards Board (FASB) deferred the July 1, 2003 effective date for paragraphs 9 and 10 of SFAS No. 150. Accordingly, on November 6, 2003 the Company reissued its press release and made available certain supplemental information on its website reflecting the impact of the deferral of SFAS No. 150. The text of the November 6, 2003 press release and the related supplemental information are attached hereto as Exhibits 99.1 and 99.2 and are incorporated by reference herein.

SIGNATURES

        Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: November 6, 2003	 	BOSTON PROPERTIES LIMITED PARTNERSHIP	

 	
By: Boston Properties, Inc., its General Partner	

 	
/s/  DOUGLAS T. LINDE      

	

 	
By:	
Douglas T. Linde
Chief Financial Officer

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ITEM 7. Financial Statements, Pro Forma Financial Information and Exhibits.
ITEM 12. Results of Operations and Financial Condition.
SIGNATURES

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Exhibit 99.1

Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2003

Boston Properties, Inc.
Third Quarter 2003
INDEX
 
	 	Page

	
Company Background	 	3	
Investor Information	 	4-5	
Financial Highlights	 	6	
Consolidated Balance Sheets	 	7	
Consolidated Income Statements	 	8	
Funds From Operations	 	9	
Funds Available for Distribution and Ratios	 	10	
Capital Structure	 	11	
Debt Analysis	 	12-15	
Unconsolidated Joint Ventures	 	16-17	
Portfolio Overview—Square Footage	 	18	
Property Listing	 	19-22	
Top 20 Tenants	 	23	
Portfolio Overview	 	24	
Occupancy Analysis	 	25	
Office Properties—Lease Expiration Roll Out	 	26	
Office/Technical Properties—Lease Expiration Roll Out	 	27	
Industrial Properties—Lease Expiration Roll Out	 	28	
Retail Properties—Lease Expiration Roll Out	 	29	
Grand Total—Office, Office/Technical, Industrial and Retail Properties	 	30	
Boston Area Lease Expiration Roll Out	 	31-32	
Washington DC Area Lease Expiration Roll Out	 	33-34	
San Francisco Area Lease Expiration Roll Out	 	35-36	
New York Area Lease Expiration Roll Out	 	37-38	
Princeton Area Lease Expiration Roll Out	 	39-40	
Other Area Lease Expiration Roll Out	 	41-42	
CBD/Suburban Lease Expiration Roll Out	 	43-44	
Hotel Performance	 	45	
Same Property Performance	 	46	
Reconciliation to Same Property Performance	 	47	
In-Service Property Performance	 	48	
Capital Expenditures, Tenant Improvements and Leasing Commissions	 	49	
Value Creation Pipeline—Acquisitions/Dispositions	 	50	
Value Creation Pipeline—Development	 	51	
Value Creation Pipeline—Land Parcels and Purchase Options	 	52	
Definitions	 	53	
        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 "expects," "plans," "estimates," "projects," "intends," "believes" 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 ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, the impact of newly adopted accounting principles 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. The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the fourth quarter of 2003 and the full year of 2004.

2

COMPANY BACKGROUND

        Boston Properties, Inc. (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 four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. Boston Properties was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. The Company acquires, develops and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco and Princeton, New Jersey. Its property portfolio primarily comprises first-class office space and also includes hotels and industrial buildings. Boston Properties is well known for its in-house building management expertise and responsiveness to tenants' needs.

        The Boston Properties Management Team is among the most distinguished in the REIT industry. This deep and talented team of twenty-eight individuals average twenty-four years of real estate experience and fifteen years with Boston Properties. Chairman Mortimer Zuckerman is nationally known, serving as Chairman and Editor-in-Chief of U.S. News and World Report and Chairman and Publisher of the New York Daily News. He holds an undergraduate degree from McGill University, a law degree from Harvard University and an MBA from the Wharton School, University of Pennsylvania. President and CEO Edward Linde serves on a number of corporate and philanthropic boards, including John Hancock Financial Services, Inc. the Boston Symphony Orchestra, National Association of Real Estate Investment Trusts (NAREIT) and The Real Estate Roundtable. He holds a B.S. Civil Engineering degree from MIT and an MBA with high distinction as a Baker Scholar from Harvard Graduate School of Business Administration.

        Boston Properties' primary business objective is to maximize return on investment in an effort to provide its stockholders with the greatest possible total return. The Company's targeted markets are 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. Boston Properties' business strategy includes selectively acquiring assets which increase its penetration in the markets in which it has chosen to concentrate while exploring the sale of properties to take advantage of its value creation and the demand for its premier properties, which often results in high sale prices. The Company continues to enhance its balanced capital structure through its access to a variety of sources of capital. Additionally, Boston Properties is an investment grade rated company maintaining current senior unsecured debt ratings of BBB from Standard & Poor's, Baa2 from Moody's Investor Services and BBB from Fitch Ratings.

3

INVESTOR INFORMATION
Corporate Headquarters
111 Huntington Avenue
Boston, MA 02199-7610
(617) 236-3300
(617) 236-3311 (fax)
www.bostonproperties.com	 	Stock Exchange Listing
New York Stock Exchange
Trading Symbol
BXP	 	Information Requests
To request a standard Investor package or to be added to our quarterly distribution list:
617-236-3322
Investor_relations@bostonproperties.com	

Key Management:	 	 	
Mortimer B. Zuckerman	 	Chairman of the Board	
Edward H. Linde	 	President, CEO and Director	
Robert E. Burke	 	Executive Vice President, Operations	
Douglas T. Linde	 	Senior Vice President, CFO and Treasurer	
Raymond A. Ritchey	 	Executive Vice President, National Director of Acquisitions and Development	
RESEARCH COVERAGE

	
EQUITY

	 	DEBT

	
A.G. Edwards & Sons, Inc.	 	David AuBuchon	 	(314) 955-5452	 	Rating Agencies:	 	 	 	 	
Banc of America Securities LLC	 	Lee Schalop	 	(212) 847-5677	 	Fitch Ratings	 	William Travers	 	(212) 908-0304	
Bear Stearns & Company, Inc.	 	Ross Smotrich	 	(212) 272-8046	 	Moody's Investor Services	 	Lesia Bates Moss	 	(212) 553-4705	
Credit Suisse First Boston, Inc.	 	Jay Habermann	 	(212) 538-5250	 	Standard & Poor's	 	James Fielding	 	(212) 438-2452	
Deutsche Bank	 	Louis Taylor	 	(212) 250-4912	 	 	 	 	 	 	
Friedman, Billings, Ramsey	 	David Loeb	 	(703) 469-1289	 	Analysts:	 	 	 	 	
Goldman Sachs & Company	 	Carey Callaghan	 	(212) 902-4351	 	Banc of America Securities LLC	 	Chris Brown	 	(704) 386-2524	
Green Street Advisors, Inc.	 	Jim Sullivan	 	(949) 640-8780	 	Bear, Stearns & Co., Inc.	 	Susan Berliner	 	(212) 272-2000	
J.P. Morgan Securities, Inc.	 	Anthony Paolone	 	(212) 622-6682	 	BNP Paribas	 	Erich Marriott	 	(212) 841-3186	
Lehman Brothers	 	David Shulman	 	(212) 526-3413	 	Credit Suisse First Boston, Inc.	 	Thierry Perrein	 	(212) 538-8618	
McDonald Investments, Inc.	 	Anatole Pevnev	 	(216) 263-4783	 	Deutsche Bank Securities, Inc.	 	Scott O'Shea	 	(212) 250-7190	
Merrill Lynch & Company, Inc.	 	Steve Sakwa	 	(212) 449-0335	 	J.P. Morgan Securities, Inc.	 	Mark Streeter	 	(212) 834-5086	
Morgan Stanley & Co., Inc.	 	Greg Whyte	 	(212) 761-6331	 	Merrill Lynch & Company, Inc.	 	John Forrey	 	(212) 449-1812	
Prudential Equity Group, Inc.	 	James Sullivan	 	(212) 778-2515	 	Smith Barney Citigroup	 	Thomas Cook	 	(212) 816-6000	
RBC Capital Markets (US)	 	Jay Leupp	 	(415) 633-8588	 	U.S. Bancorp Piper Jaffray	 	Andrew Rosivach	 	(212) 284-9304	
Smith Barney Citigroup	 	Jonathan Litt	 	(212) 816-0231	 	 	 	 	 	 	
UBS Securities, LLC	 	Keith Mills	 	(212) 713-3098	 	 	 	 	 	 	
        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 or 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.

TIMING

        Results for the fourth quarter 2003 will be announced in late January 2004.

4

Boston Properties, Inc.
Third Quarter 2003

COMMON STOCK DATA (NYSE:BXP)

        Boston Properties' common stock is traded primarily on the New York Stock Exchange under the symbol "BXP." BXP's common stock has had the following characteristics (based on information reported by the New York Stock Exchange):
 
	 	3rd Quarter 2003

	 	2nd Quarter 2003

	 	1st Quarter 2003

	 	4th Quarter 2002

	 	3rd Quarter 2002

	 	
High Price	 	$	45.50	 	$	44.51	 	$	39.29	 	$	37.43	 	$	39.87	 	
Low Price	 	$	41.55	 	$	38.65	 	$	34.99	 	$	33.93	 	$	34.56	 	
Average Price	 	$	43.35	 	$	41.36	 	$	36.58	 	$	36.50	 	$	37.64	 	
Closing Price, at the end of the quarter	 	$	43.47	 	$	43.80	 	$	37.90	 	$	36.86	 	$	37.20	 	
Dividends per share—annualized (1)	 	$	2.52	 	$	2.52	 	$	2.44	 	$	2.44	 	$	2.44	 	
Closing dividend yield—annualized	 	 	5.80	%	 	5.75	%	 	6.44	%	 	6.62	%	 	6.56	%	
Closing common shares outstanding, plus common units and preferred units on an as-converted basis (thousands)	 	 	127,037	 	 	126,605	 	 	125,597	 	 	125,038	 	 	125,031	 	
Closing market value of shares and units outstanding (thousands)	 	$	5,522,298	 	$	5,545,299	 	$	4,760,126	 	$	4,608,901	 	$	4,651,153	 	

(1)
Reflects dividend increase from $0.61 per share to $0.63 per share effective Q2 2003.

BPLP UNSECURED SENIOR NOTES

	 	5/22/2003

	 	3/18/2003

	 	1/17/2003

	 	12/13/2002

	 	
Settlement Date	 	 	5/22/03	 	 	3/18/03	 	 	1/17/03	 	 	12/13/02	 	
Principal Amount	 	$	250,000,000	 	$	300,000,000	 	$	175,000,000	 	$	750,000,000	 	
Yield (on issue date)	 	 	5.075	%	 	5.636	%	 	6.280	%	 	6.296	%	
Coupon	 	 	5.000	%	 	5.625	%	 	6.250	%	 	6.250	%	
Discount	 	 	99.329	%	 	99.898	%	 	99.763	%	 	99.650	%	

Ratings:	

 	

 	

 	

 	

 	
 	Moody's	 	 	Baa2 (stable	)	 	Baa2 (stable	)	 	Baa2 (stable	)	 	Baa2 (stable	)	
 	S&P	 	 	BBB (stable	)	 	BBB (stable	)	 	BBB (stable	)	 	BBB (stable	)	
 	Fitch	 	 	BBB (stable	)	 	BBB (stable	)	 	BBB (stable	)	 	BBB (stable	)	
Maturity Date	 	 	6/1/2015	 	 	4/15/2015	 	 	1/15/2013	 	 	1/15/2013	 	
5

Boston Properties, Inc.
Third Quarter 2003

FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)

        This section includes non-GAAP financial measures, which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the most directly comparable GAAP financial measures are shown on pages 9 and 10. A description of the non-GAAP financial measures we present and a statement 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 page 53.
 
	 	Three Months Ended

	 	
 
	 	September 30, 2003

	 	June 30,
2003

	 	March 31, 2003

	 	December 31, 2002

	 	September 30, 2002

	 	
Income Items:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Revenue	 	$	331,169(1	)	$	323,370(1	)	$	319,680	(1)	$	333,597	(1)	$	301,193	(1)	
 	Straight line rent (SFAS 13)	 	$	12,144	 	$	10,687	 	$	10,866	 	$	11,938	 	$	12,244	 	
 	Fair value lease revenue (SFAS 141)(2)	 	$	(577	)	$	(167	)	$	—	 	$	—	 	$	—	 	
 	Lease termination fees (included in revenues)	 	$	1,735	 	$	1,419	 	$	1,761	 	$	3,724	 	$	1,858	 	
 	Capitalized interest	 	$	4,954	 	$	4,601	 	$	4,453	 	$	4,719	 	$	4,684	 	
 	Capitalized wages	 	$	1,288	 	$	1,325	 	$	1,172	 	$	1,057	 	$	1,562	 	
 	Operating Margins [(rental revenue—rental expenses)/rental revenue] (3)	 	 	67.1	%	 	70.1	%	 	68.3	%	 	69.0	%	 	67.0	%	
 	Net income available to common shareholders	 	$	56,970	 	$	63,236	 	$	185,045	 	$	260,146	 	$	71,541	 	
 	
Funds from operations (FFO) available to common shareholders before net derivative gains/losses and after cash basis early surrender lease income (4)	
 	
$	
99,057	
 	
$	
103,360	
 	
$	
102,735	
 	
$	
113,464	
 	
$	
98,980	
 	
 	FFO per share before net derivative gains/losses and after cash basis early surrender lease income—diluted (4)	 	$	0.98	 	$	1.03	 	$	1.03	 	$	1.14	 	$	1.00	 	
 	Net income available to common shareholders per share—basic	 	$	0.59	 	$	0.66	 	$	1.93	 	$	2.73	 	$	0.75	 	
 	Net income available to common shareholders per share—diluted	 	$	0.57	 	$	0.64	 	$	1.91	 	$	2.70	 	$	0.74	 	
 	Dividends per share	 	$	0.63	 	$	0.63	 	$	0.61	 	$	0.61	 	$	0.61	 	
 	Funds available for distribution (FAD) (5)	 	$	100,645	 	$	103,611	 	$	107,962	 	$	112,377	 	$	95,901	 	

Ratios:	

 	

 	

 	

 	

 	
 	
 	Interest Coverage Ratio (excluding capitalized interest)—cash basis (6)	 	 	2.55	 	 	2.64	 	 	2.65	 	 	2.87	 	 	2.70	 	
 	Interest Coverage Ratio (including capitalized interest)—cash basis (6)	 	 	2.39	 	 	2.48	 	 	2.50	 	 	2.69	 	 	2.52	 	
 	FFO Payout Ratio (7)	 	 	64.29	%	 	61.17	%	 	59.22	%	 	53.51	%	 	61.00	%	
 	FAD Payout Ratio (8)	 	 	74.48	%	 	71.39	%	 	65.77	%	 	62.88	%	 	73.44	%	
 
	 	September 30, 2003

	 	June 30,
2003

	 	March 31, 2003

	 	December 31, 2002

	 	September 30, 2002

	 	

Capitalization:	

 	

 	

 	

 	

 	
 	
 	Total Debt	 	$	4,920,343	 	$	4,819,282	 	$	4,980,113	 	$	5,147,220	 	$	5,466,692	 	
 	Price @ Quarter End	 	$	43.4700	 	$	43.8000	 	$	37.9000	 	$	36.8600	 	$	37.2000	 	
 	Equity Value @ Quarter End	 	$	5,522,298	 	$	5,545,299	 	$	4,760,126	 	$	4,608,901	 	$	4,651,153	 	
 	Total Market Capitalization (9)	 	$	10,442,641	 	$	10,364,581	 	$	9,740,239	 	$	9,756,121	 	$	10,117,845	 	
 	Debt/Total Market Capitalization (9)	 	 	47.12	%	 	46.50	%	 	51.13	%	 	52.76	%	 	54.03	%	

(1)
Includes gross revenues from hotels of $17,542, $17,213, $13,246, $24,779 and $20,007 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002, and September 30, 2002, respectively.

(2)
Represents the net adjustment for above and below market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

(3)
Rental Expenses include operating expenses and real estate taxes. Amounts are exclusive of the gross up of reimbursable electricity amounts totaling $8,742, $6,459, $5,391, $6,476 and $6,329 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(4)
For a quantitative reconciliation of the differences between FFO and net income available to common shareholders, see page 9.

(5)
For a quantitative reconciliation of the differences between FAD and FFO before net derivative gains/losses and after cash basis early surrender lease income, see page 10.

(6)
For additional detail, see page 10.

(7)
Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FFO per share before net derivative gains/losses and after cash basis early surrender lease income—diluted.

(8)
Gross dividends to common shareholders plus distributions to common Operating Partnership unitholders (other than the Company) divided by FAD.

(9)
For additional detail, see page 53.

6

Boston Properties, Inc.
Third Quarter 2003

CONSOLIDATED BALANCE SHEETS
(in thousands)
 
	 	September 30, 2003

	 	June 30,
2003

	 	March 31,
2003

	 	December 31, 2002

	 	September 30, 2002

	 	
 
	 	(unaudited)

	 	(unaudited)

	 	(unaudited)

	 	(unaudited)

ASSETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Real estate	 	$	8,060,525	 	$	7,863,035	 	$	7,745,475	 	$	7,781,684	 	$	8,139,450	 	
Development in progress	 	 	481,571	 	 	445,003	 	 	418,798	 	 	448,576	 	 	412,981	 	
Land held for future development	 	 	232,361	 	 	218,045	 	 	216,537	 	 	215,866	 	 	213,769	 	
Real estate held for sale	 	 	—	 	 	—	 	 	—	 	 	224,585	 	 	—	 	
 	Less accumulated depreciation	 	 	(952,754	)	 	(893,246	)	 	(846,002	)	 	(822,933	)	 	(836,418	)	

	 	

	 	

	 	

	 	

	 	
 	Total real estate	 	 	7,821,703	 	 	7,632,837	 	 	7,534,808	 	 	7,847,778	 	 	7,929,782	 	
Cash and cash equivalents	 	 	37,621	 	 	158,587	 	 	384,418	 	 	55,275	 	 	28,793	 	
Escrows	 	 	27,992	 	 	18,187	 	 	20,804	 	 	41,906	 	 	28,200	 	
Tenant and other receivables, net	 	 	21,813	 	 	21,185	 	 	23,193	 	 	20,458	 	 	48,716	 	
Accrued rental income, net	 	 	175,063	 	 	160,586	 	 	148,034	 	 	165,321	 	 	156,818	 	
Deferred charges, net	 	 	178,819	 	 	168,833	 	 	165,559	 	 	176,545	 	 	148,435	 	
Prepaid expenses and other assets	 	 	57,012	 	 	22,090	 	 	30,144	 	 	18,015	 	 	38,752	 	
Investments in unconsolidated joint ventures	 	 	88,632	 	 	93,904	 	 	101,794	 	 	101,905	 	 	101,819	 	

	 	

	 	

	 	

	 	

	 	
 	 	Total assets	 	$	8,408,655	 	$	8,276,209	 	$	8,408,754	 	$	8,427,203	 	$	8,481,315	 	

	 	

	 	

	 	

	 	

	 	

LIABILITIES AND STOCKHOLDERS' EQUITY	

 	

 	

 	

 	

 	
 	
Liabilities:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Mortgage notes payable	 	$	3,450,112	 	$	3,349,134	 	$	3,758,406	 	$	4,267,119	 	$	4,422,692	 	
 	Unsecured senior notes, net of discount	 	 	1,470,231	 	 	1,470,148	 	 	1,221,707	 	 	747,375	 	 	—	 	
 	Unsecured bridge loan	 	 	—	 	 	—	 	 	—	 	 	105,683	 	 	1,000,000	 	
 	Unsecured line of credit	 	 	—	 	 	—	 	 	—	 	 	27,043	 	 	44,000	 	
 	Accounts payable and accrued expenses	 	 	69,940	 	 	49,299	 	 	63,319	 	 	73,846	 	 	69,097	 	
 	Dividends and distributions payable	 	 	83,972	 	 	84,030	 	 	81,128	 	 	81,226	 	 	81,329	 	
 	Interest rate contracts	 	 	9,875	 	 	12,677	 	 	13,663	 	 	14,514	 	 	15,115	 	
 	Accrued interest payable	 	 	44,010	 	 	56,088	 	 	37,534	 	 	25,141	 	 	18,265	 	
 	Other liabilities	 	 	69,242	 	 	63,771	 	 	63,992	 	 	81,085	 	 	70,292	 	

	 	

	 	

	 	

	 	

	 	
 	 	Total liabilities	 	 	5,197,382	 	 	5,085,147	 	 	5,239,749	 	 	5,423,032	 	 	5,720,790	 	

	 	

	 	

	 	

	 	

	 	
Commitments and contingencies	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	

	 	

	 	

	 	

	 	

	 	
Minority interests	 	 	829,779	 	 	857,058	 	 	860,182	 	 	844,581	 	 	804,229	 	

	 	

	 	

	 	

	 	

	 	
Stockholders' Equity:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	
 	Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	
Common stock, $.01 par value, 250,000,000 shares authorized, 97,577,665, 97,028,911, 95,928,738, 95,362,990, and 95,273,202 outstanding, respectively	 	 	976	 	 	970	 	 	959	 	 	954	 	 	953	 	
 	Additional paid-in capital	 	 	2,084,490	 	 	2,032,952	 	 	2,010,764	 	 	1,982,689	 	 	1,977,560	 	
 	Earnings in excess of dividends/(dividends in excess of earnings)	 	 	322,530	 	 	327,222	 	 	325,114	 	 	198,586	 	 	(2,532	)	
 	Treasury common stock, at cost	 	 	(2,722	)	 	(2,722	)	 	(2,722	)	 	(2,722	)	 	(2,722	)	
 	Unearned compensation	 	 	(7,271	)	 	(7,734	)	 	(8,448	)	 	(2,899	)	 	(3,355	)	
 	Accumulated other comprehensive loss	 	 	(16,509	)	 	(16,684	)	 	(16,844	)	 	(17,018	)	 	(13,608	)	

	 	

	 	

	 	

	 	

	 	
 	 	Total stockholders' equity	 	 	2,381,494	 	 	2,334,004	 	 	2,308,823	 	 	2,159,590	 	 	1,956,296	 	

	 	

	 	

	 	

	 	

	 	
 	 	 	Total liabilities and stockholders' equity	 	$	8,408,655	 	$	8,276,209	 	$	8,408,754	 	$	8,427,203	 	$	8,481,315	 	

	 	

	 	

	 	

	 	

	 	
7

Boston Properties, Inc.
Third Quarter 2003

CONSOLIDATED INCOME STATEMENTS
(in thousands, except for per share amounts)
(unaudited)
 
	 	Three Months Ended

	 	
 
	 	30-Sep-03

	 	30-Jun-03

	 	31-Mar-03

	 	31-Dec-02

	 	30-Sep-02

	 	
Revenue:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Rental	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Base Rent	 	$	253,594	 	$	248,848	 	$	247,353	 	$	253,948	 	$	229,453	 	
 	 	Recoveries from tenants	 	 	42,079	 	 	37,262	 	 	39,881	 	 	38,184	 	 	34,884	 	
 	 	Parking and other	 	 	13,249	 	 	13,955	 	 	14,195	 	 	13,217	 	 	13,056	 	

	 	

	 	

	 	

	 	

	 	
 	 	 	Total rental revenue	 	 	308,922	 	 	300,065	 	 	301,429	 	 	305,349	 	 	277,393	 	
 	Hotel revenues	 	 	17,542	 	 	17,213	 	 	13,246	 	 	24,779	 	 	20,007	 	
 	Development and management services	 	 	3,616	 	 	5,429	 	 	4,590	 	 	2,769	 	 	2,571	 	
 	Interest and other	 	 	1,089	 	 	663	 	 	415	 	 	700	 	 	1,222	 	

	 	

	 	

	 	

	 	

	 	
 	 	 	Total revenue	 	 	331,169	 	 	323,370	 	 	319,680	 	 	333,597	 	 	301,193	 	

	 	

	 	

	 	

	 	

	 	

Expenses:	

 	

 	

 	

 	

 	
 	
 	Operating	 	 	66,526	 	 	57,909	 	 	61,188	 	 	59,328	 	 	61,553	 	
 	Real estate taxes	 	 	40,878	 	 	37,780	 	 	37,914	 	 	38,969	 	 	33,565	 	
 	Hotel operating	 	 	12,829	 	 	12,258	 	 	11,171	 	 	17,562	 	 	13,524	 	
 	General and administrative	 	 	11,183	 	 	11,028	 	 	11,399	 	 	12,703	 	 	9,956	 	
 	Interest (1)	 	 	75,343	 	 	75,447	 	 	73,645	 	 	71,337	 	 	65,476	 	
 	Depreciation and amortization	 	 	53,455	 	 	50,742	 	 	49,824	 	 	52,188	 	 	43,933	 	
 	Net derivative (gains)/losses	 	 	(885	)	 	991	 	 	932	 	 	1,461	 	 	5,284	 	
 	Loss from early extinguishment of debt	 	 	—	 	 	—	 	 	1,474	 	 	2,386	 	 	—	 	

	 	

	 	

	 	

	 	

	 	
 	 	 	Total expenses	 	 	259,329	 	 	246,155	 	 	247,547	 	 	255,934	 	 	233,291	 	

	 	

	 	

	 	

	 	

	 	
Income before minority interests and income from unconsolidated joint ventures	 	 	71,840	 	 	77,215	 	 	72,133	 	 	77,663	 	 	67,902	 	
Minority interest in property partnerships	 	 	563	 	 	245	 	 	397	 	 	162	 	 	720	 	
Income from unconsolidated joint ventures	 	 	1,343	 	 	1,353	 	 	2,658	 	 	2,083	 	 	2,530	 	

	 	

	 	

	 	

	 	

	 	
Income before minority interest in Operating Partnership	 	 	73,746	 	 	78,813	 	 	75,188	 	 	79,908	 	 	71,152	 	
Minority interest in Operating Partnership (2)	 	 	(18,117	)	 	(19,123	)	 	(18,523	)	 	(19,498	)	 	(18,071	)	

	 	

	 	

	 	

	 	

	 	
Income before gains on sales of real estate and other assets	 	 	55,629	 	 	59,690	 	 	56,665	 	 	60,410	 	 	53,081	 	
Gains on sales of real estate and other assets, net of minority interest	 	 	1,341	 	 	3,546	 	 	52,912	 	 	187,562	 	 	—	 	

	 	

	 	

	 	

	 	

	 	
Income before gain on sales of land held for development	 	 	56,970	 	 	63,236	 	 	109,577	 	 	247,972	 	 	53,081	 	
Gain on sales of land held for development, net of minority interest	 	 	—	 	 	—	 	 	—	 	 	—	 	 	3,644	 	

	 	

	 	

	 	

	 	

	 	
Income before discontinued operations	 	 	56,970	 	 	63,236	 	 	109,577	 	 	247,972	 	 	56,725	 	
Income from discontinued operations, net of minority interest	 	 	—	 	 	—	 	 	1,940	 	 	4,529	 	 	3,032	 	
Gains on sales of real estate from discontinued operations, net of minority interest	 	 	—	 	 	—	 	 	73,528	 	 	7,645	 	 	11,910	 	

	 	

	 	

	 	

	 	

	 	
Income before preferred dividend	 	 	56,970	 	 	63,236	 	 	185,045	 	 	260,146	 	 	71,667	 	
Preferred dividend	 	 	—	 	 	—	 	 	—	 	 	—	 	 	(126	)	

	 	

	 	

	 	

	 	

	 	
Net income available to common shareholders	 	$	56,970	 	$	63,236	 	$	185,045	 	$	260,146	 	$	71,541	 	

	 	

	 	

	 	

	 	

	 	
INCOME PER SHARE OF COMMON STOCK (EPS)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net income available to common shareholders per share—basic	 	$	0.59	 	$	0.66	 	$	1.93	 	$	2.73	 	$	0.75	 	

	 	

	 	

	 	

	 	

	 	
 	Net income available to common shareholders per share—diluted	 	$	0.57	 	$	0.64	 	$	1.91	 	$	2.70	 	$	0.74	 	

	 	

	 	

	 	

	 	

	 	

(1)
Interest expense is reported net of capitalized interest of $4,954, $4,601, $4,453, $4,719 and $4,684 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.
(2)
Equals minority interest share of 18.08%, 17.45%, 17.62%, 17.69%, and 17.76% of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

        Certain prior period amounts have been reclassified to conform to current period presentation.

8

Boston Properties, Inc.
Third Quarter 2003

FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
 
	 	Three Months Ended

	
 
	 	30-Sep-03

	 	30-Jun-03

	 	31-Mar-03

	 	31-Dec-02

	 	30-Sep-02

	
Net income available to common shareholders	 	$	56,970	 	$	63,236	 	$	185,045	 	$	260,146	 	$	71,541	
 	Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Preferred dividend	 	 	—	 	 	—	 	 	—	 	 	—	 	 	126	
 	 	Minority interest in Operating Partnership	 	 	18,117	 	 	19,123	 	 	18,523	 	 	19,498	 	 	18,071	
 	Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Minority interest in property partnerships	 	 	563	 	 	245	 	 	397	 	 	162	 	 	720	
 	 	Income from unconsolidated joint ventures	 	 	1,343	 	 	1,353	 	 	2,658	 	 	2,083	 	 	2,530	
 	 	Gain on sales of real estate and other assets, net of minority interest	 	 	1,341	 	 	3,546	 	 	52,912	 	 	187,562	 	 	—	
 	 	Gain on sales of land held for development, net of minority interest	 	 	—	 	 	—	 	 	—	 	 	—	 	 	3,644	
 	 	Income from discontinued operations, net of minority interest	 	 	—	 	 	—	 	 	1,940	 	 	4,529	 	 	3,032	
 	 	Gain on sales of real estate from discontinued operations, net of minority interest	 	 	—	 	 	—	 	 	73,528	 	 	7,645	 	 	11,910	

	 	

	 	

	 	

	 	

	
Income before minority interests and income from unconsolidated joint ventures	 	 	71,840	 	 	77,215	 	 	72,133	 	 	77,663	 	 	67,902	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Real estate depreciation and amortization (1)	 	 	54,606	 	 	52,338	 	 	51,791	 	 	56,072	 	 	46,971	
 	 	Income from discontinued operations	 	 	—	 	 	—	 	 	2,355	 	 	5,503	 	 	3,687	
 	 	Income from unconsolidated joint ventures	 	 	1,343	 	 	1,353	 	 	2,658	 	 	2,083	 	 	2,530	
 	 	Loss from early extinguishment of debt associated with the sale of properties	 	 	—	 	 	—	 	 	1,474	 	 	2,386	 	 	—	
 	Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Minority property partnership's share of funds from operations	 	 	805	 	 	842	 	 	866	 	 	1,390	 	 	521	
 	 	Preferred dividends and distributions	 	 	5,183	 	 	5,852	 	 	5,771	 	 	5,926	 	 	6,162	

	 	

	 	

	 	

	 	

	
Funds from operations (FFO)	 	 	121,801	 	 	124,212	 	 	123,774	 	 	136,391	 	 	114,407	
 	Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Net derivative losses	 	 	(885	)	 	991	 	 	932	 	 	1,461	 	 	5,284	
 	 	Early surrender lease payments received — contractual basis	 	 	—	 	 	—	 	 	—	 	 	—	 	 	667	

	 	

	 	

	 	

	 	

	
FFO before net derivative gains/losses and after early surrender lease payments received	 	$	120,916	 	$	125,203	 	$	124,706	 	$	137,852	 	$	120,358	

	 	

	 	

	 	

	 	

	
FFO available to common shareholders before net derivative gains/losses and after early surrender lease payments received (2)	 	$	99,057	 	$	103,360	 	$	102,735	 	$	113,464	 	$	98,980	

	 	

	 	

	 	

	 	

	
FFO per share before net derivative gains/losses and after cash basis early surrender lease income — basic	 	$	1.02	 	$	1.07	 	$	1.07	 	$	1.19	 	$	1.04	

	 	

	 	

	 	

	 	

	
Weighted average shares outstanding — basic	 	 	97,360	 	 	96,531	 	 	95,733	 	 	95,313	 	 	94,904	

	 	

	 	

	 	

	 	

	
FFO per share before net derivative gains/losses and after early surrender lease payments received — diluted	 	$	0.98	 	$	1.03	 	$	1.03	 	$	1.14	 	$	1.00	

	 	

	 	

	 	

	 	

	
FFO per share after net derivative gains/losses and before early surrender lease payments received — diluted	 	$	0.99	 	$	1.02	 	$	1.02	 	$	1.13	 	$	0.95	

	 	

	 	

	 	

	 	

	
Weighted average shares outstanding — diluted	 	 	107,231	 	 	107,408	 	 	105,955	 	 	105,631	 	 	105,725	

	 	

	 	

	 	

	 	

	

RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
 
	 	September 30, 2003

	 	June 30, 2003

	 	March 31, 2003

	 	December 31, 2002

	 	September 30, 2002

	
 
	 	Income
(Numerator)

	 	Shares
(Denominator)

	 	Income
(Numerator)

	 	Shares
(Denominator)

	 	Income
(Numerator)

	 	Shares
(Denominator)

	 	Income
(Numerator)

	 	Shares
(Denominator)

	 	Income
(Numerator)

	 	Shares
(Denominator)

	
Basic FFO before net derivative gains/losses and after early surrender	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
lease income	 	$	120,916	 	118,846	 	$	125,203	 	116,931	 	$	124,706	 	116,207	 	$	137,852	 	115,800	 	$	120,358	 	115,402	
Effect of Dilutive Securities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Convertible Preferred Units	 	 	5,183	 	8,047	 	 	5,852	 	9,195	 	 	5,771	 	9,199	 	 	5,926	 	9,236	 	 	6,036	 	9,344	
Convertible Preferred Stock	 	 	—	 	—	 	 	—	 	—	 	 	—	 	—	 	 	—	 	—	 	 	126	 	200	
Stock Options and other	 	 	—	 	1,823	 	 	—	 	1,682	 	 	—	 	1,022	 	 	—	 	1,082	 	 	—	 	1,276	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Diluted FFO before net derivative gains/losses and after early surrender lease payments received	 	$	126,099	 	128,716	 	$	131,055	 	127,808	 	$	130,477	 	126,428	 	$	143,778	 	126,118	 	$	126,520	 	126,222	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Company's share of diluted FFO before net derivative gains/losses and after early surrender lease payments received (3)	 	$	105,051	 	107,231	 	$	110,137	 	107,408	 	$	109,348	 	105,955	 	$	120,422	 	105,631	 	$	105,974	 	105,725	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
FFO per share before net derivative gains/losses and after early surrender lease payments received — basic	 	$	1.02	 	 	 	$	1.07	 	 	 	$	1.07	 	 	 	$	1.19	 	 	 	$	1.04	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	
FFO per share before net derivative gains/losses and after early surrender lease payments received — diluted	 	$	0.98	 	 	 	$	1.03	 	 	 	$	1.03	 	 	 	$	1.14	 	 	 	$	1.00	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	 	

	 	 	

(1)
Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,821, $2,266, $2,514, $2,848 and $2,170 less corporate related depreciation of $670, $670, $674, $733 and $733 for the three months ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)
Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 81.92%, 82.55%, 82.38%, 82.31%, and 82.24%, respectively.

(3)
Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002 was 83.31%, 84.04%, 83.81%, 83.76% and 83.76%, respectively.

9

Boston Properties, Inc.
Third Quarter 2003

Funds Available for Distribution (FAD)
(in thousands)
 
	 	Three Months Ended

	 	
 
	 	September 30, 2003

	 	June 30, 2003

	 	March 31, 2003

	 	December 31, 2002

	 	September 30, 2002

	 	
Funds from operations (FFO) before net derivative gains/losses and after cash basis early surrender lease income (see page 9)	 	$	120,916	 	$	125,203	 	$	124,706	 	$	137,852	 	$	120,358	 	
Add: Non real estate depreciation	 	 	670	 	 	670	 	 	674	 	 	733	 	 	733	 	
 	Fair value lease revenue (SFAS 141)	 	 	577	 	 	167	 	 	—	 	 	—	 	 	—	 	
 	Less: Straight-line rent	 	 	(12,144	)	 	(10,687	)	 	(10,866	)	 	(11,938	)	 	(12,244	)	
 	Recurring capital expenditures	 	 	(3,415	)	 	(4,726	)	 	(1,960	)	 	(5,909	)	 	(4,266	)	
 	Hotel improvements, equipment upgrades and replacements	 	 	(353	)	 	(911	)	 	(405	)	 	(188	)	 	(394	)	
 	2nd generation tenant improvements and leasing commissions	 	 	(5,606	)	 	(6,105	)	 	(4,187	)	 	(8,173	)	 	(8,286	)	

	 	

	 	

	 	

	 	

	 	
Funds available for distribution (FAD)	 	$	100,645	 	$	103,611	 	$	107,962	 	$	112,377	 	$	95,901	 	

	 	

	 	

	 	

	 	

	 	

Interest Coverage Ratios
(in thousands, except for ratio amounts)
 
	 	Three Months Ended

	 	
 
	 	September 30, 2003

	 	June 30, 2003

	 	March 31, 2003

	 	December 31, 2002

	 	September 30, 2002

	 	
Excluding Capitalized Interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before minority interests and income from unconsolidated joint ventures	 	$	71,840	 	$	77,215	 	$	72,133	 	$	77,663	 	$	67,902	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Discontinued operations	 	 	—	 	 	—	 	 	2,355	 	 	5,503	 	 	3,687	 	
 	Interest expense	 	 	75,343	 	 	75,447	 	 	73,645	 	 	71,337	 	 	65,476	 	
 	Depreciation	 	 	53,455	 	 	50,742	 	 	49,824	 	 	52,188	 	 	43,933	 	
 	Net derivative (gains)/losses	 	 	(885	)	 	991	 	 	932	 	 	1,461	 	 	5,284	 	
 	Prepayment penalty	 	 	—	 	 	—	 	 	1,474	 	 	2,386	 	 	—	 	
 	Income from unconsolidated joint ventures	 	 	1,343	 	 	1,353	 	 	2,658	 	 	2,083	 	 	2,530	 	
 	Discontinued Operations — depreciation	 	 	—	 	 	—	 	 	127	 	 	1,781	 	 	1,601	 	
 	Discontinued Operations — interest expense	 	 	—	 	 	—	 	 	296	 	 	809	 	 	2,949	 	
 	Fair value lease revenue (SFAS 141)	 	 	577	 	 	167	 	 	—	 	 	—	 	 	—	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Straight-line rent	 	 	(12,144	)	 	(10,687	)	 	(10,866	)	 	(11,938	)	 	(12,244	)	

	 	

	 	

	 	

	 	

	 	
Subtotal	 	 	189,529	 	 	195,228	 	 	192,578	 	 	203,273	 	 	181,118	 	
Divided by:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest expense (1)	 	 	74,214	 	 	74,077	 	 	72,352	 	 	69,901	 	 	64,202	 	
 	Interest expense — discontinued operations	 	 	—	 	 	—	 	 	296	 	 	809	 	 	2,949	 	

	 	

	 	

	 	

	 	

	 	
Total interest expense	 	 	74,214	 	 	74,077	 	 	72,648	 	 	70,710	 	 	67,151	 	
Interest Coverage Ratio	 	 	2.55	 	 	2.64	 	 	2.65	 	 	2.87	 	 	2.70	 	

	 	

	 	

	 	

	 	

	 	
Including Capitalized Interest	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Income before minority interests and income from unconsolidated joint ventures	 	$	71,840	 	$	77,215	 	$	72,133	 	$	77,663	 	$	67,902	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Discontinued operations	 	 	—	 	 	—	 	 	2,355	 	 	5,503	 	 	3,687	 	
 	Interest expense	 	 	75,343	 	 	75,447	 	 	73,645	 	 	71,337	 	 	65,476	 	
 	Depreciation	 	 	53,455	 	 	50,742	 	 	49,824	 	 	52,188	 	 	43,933	 	
 	Net derivative (gains)/losses	 	 	(885	)	 	991	 	 	932	 	 	1,461	 	 	5,284	 	
 	Prepayment penantly	 	 	—	 	 	—	 	 	1,474	 	 	2,386	 	 	—	 	
 	Income from unconsolidated joint ventures	 	 	1,343	 	 	1,353	 	 	2,658	 	 	2,083	 	 	2,530	 	
 	Discontinued Operations — depreciation	 	 	—	 	 	—	 	 	127	 	 	1,781	 	 	1,601	 	
 	Discontinued Operations — interest expense	 	 	—	 	 	—	 	 	296	 	 	809	 	 	2,949	 	
 	Fair value lease revenue (SFAS 141)	 	 	577	 	 	167	 	 	—	 	 	—	 	 	—	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Straight-line rent	 	 	(12,144	)	 	(10,687	)	 	(10,866	)	 	(11,938	)	 	(12,244	)	

	 	

	 	

	 	

	 	

	 	
Subtotal	 	 	189,529	 	 	195,228	 	 	192,578	 	 	203,273	 	 	181,118	 	
Divided by:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Interest expense (1) (2)	 	 	79,168	 	 	78,678	 	 	76,805	 	 	74,763	 	 	68,867	 	
 	Interest expense — discontinued operations	 	 	—	 	 	—	 	 	296	 	 	809	 	 	2,949	 	

	 	

	 	

	 	

	 	

	 	
 	 	Total interest expense	 	 	79,168	 	 	78,678	 	 	77,101	 	 	75,572	 	 	71,816	 	

	 	

	 	

	 	

	 	

	 	
Interest Coverage Ratio	 	 	2.39	 	 	2.48	 	 	2.50	 	 	2.69	 	 	2.52	 	

	 	

	 	

	 	

	 	

	 	

(1)
Excludes amortization of financing costs of $1,129, $1,370, $1,293, $1,436 and $1,274 for the quarters ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 30, 2002, respectively.

(2)
Includes capitalized interest of $4,954, $4,601, $4,453, $4,719 and $4,684 for the quarters ended September 30, 2003, June 30, 2003, March 31, 2003, December 31, 2002 and September 31, 2002, respectively.

10

Boston Properties, Inc.
Third Quarter 2003

CAPITAL STRUCTURE

Debt
(in thousands)
 
	 	Aggregate Principal
September 30, 2003

	
Mortgage Notes Payable	 	$	3,450,112	
Unsecured Senior Notes, net of discount	 	 	1,470,231	
Unsecured Line of Credit	 	 	—	

	
Total Debt	 	$	4,920,343	

	

Equity
(in thousands)
 
	 	Shares & Units
Outstanding

	 	Common
Stock
Equivalents

	 	Equivalent (1)

	
Common Stock	 	97,578	 	97,578	 	$	4,241,716	
Operating Partnership Units	 	22,372	 	22,372	 	 	972,511	
Preferred Operating Partnership Units	 	 	 	 	 	 	 	
Series Two	 	5,401	 	7,087	 	 	308,071	

	 	

	
Total Equity	 	 	 	127,037	 	$	5,522,298	

	 	

	
Total Market Capitalization	 	 	 	 	 	$	10,442,641	

	

(1)
Value based on September 30, 2003 closing price of $43.47 per share of common stock.

11

Boston Properties, Inc.
Third Quarter 2003

DEBT ANALYSIS

Debt Maturities and Principal Payments
(in thousands)
 
	 	2003 (1)

	 	2004

	 	2005

	 	2006

	 	2007

	 	Thereafter

	 	Total

	 	
Amount	 	$	11,589	 	$	424,116	 	$	308,384	 	$	306,983	 	$	185,171	 	$	3,684,100	 	$	4,920,343	 	
Weighted Average Rate	 	 	7.07	%	 	4.20	%	 	6.56	%	 	6.27	%	 	6.59	%	 	6.66	%	 	6.41	%	

(1)
Consists of remaining portion of 2003.
Unsecured Debt
Unsecured Line of Credit — Matures January 17, 2006
(in thousands)

Facility

	 	Outstanding
@9/30/03

	 	Letters of
Credit

	 	Remaining
Capacity
@9/30/03

	
$	605,000	 	$	—	 	$	6,670	 	$	598,330	

Unsecured Senior Notes
(in thousands)

Face Amount
@9/30/03

	 	Amount net of discount
@9/30/03

	
$	1,475,000	 	$	1,470,231	

Unsecured and Secured Debt Analysis
 
	 	% of Total Debt

	 	Weighted
Average Rate

	 	Weighted Average
Maturity

	
Unsecured Debt	 	29.88	%	5.95	%	10.2 years	
Secured Debt	 	70.12	%	6.61	%	5.2 years	

	 	

	 	

	
Total Debt	 	100.00	%	6.41	%	6.7 years	

	 	

	 	

	

Floating and Fixed Rate Debt Analysis
 
	 	% of Total Debt

	 	Weighted
Average Rate

	 	Weighted Average
Maturity

	
Floating Rate Debt	 	6.95	%	3.02	%	1.3 years	
Fixed Rate Debt	 	93.05	%	6.67	%	7.1 years	

	 	

	 	

	
Total Debt	 	100.00	%	6.41	%	6.7 years	

	 	

	 	

	
12

Boston Properties, Inc.
Third Quarter 2003

Senior Unsecured Debt Covenant Compliance Ratios
(in thousands)

        In the fourth quarter of 2002 the Company's operating 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, as trustee, as supplemented, 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, 2003 to show that the Company's operating partnership was in compliance with the terms of the indenture, as amended, 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.
 
	 	September 30, 2003

	 	
Total Assets:	 	 	 	 	
 	Capitalized Property Value	 	$	10,134,625	 	
 	Cash and Cash Equivalents	 	 	37,621	 	
 	Undeveloped Land, at Cost	 	 	232,361	 	
 	Development in Process, at Cost (including Joint Venture %)	 	 	501,530	 	

	 	
Total Assets	 	$	10,906,137	 	

	 	
Unencumbered Assets	 	$	4,332,181	 	

	 	
 	Secured Debt (Fixed and Variable) (1)	 	$	3,438,204	 	
 	Joint Venture Debt	 	 	158,682	 	
 	Contingent Liabilities & Letters of Credit	 	 	19,740	 	
 	Unsecured Debt (2)	 	 	1,475,000	 	

	 	
Total Outstanding Debt	 	$	5,091,626	 	

	 	
Consolidated EBITDA:	 	 	 	 	
Income before minority interests and income from unconsolidated joint ventures (per Consolidated Income Statement)	 	$	71,840	 	
 	Add: Interest Expense (per Consolidated Income Statement)	 	 	75,343	 	
 	Add: Depreciation and Amortization (per Consolidated Income Statement)	 	 	53,455	 	
 	Less: Net derivative gains/losses (SFAS No. 133) (per Consolidated Income Statement)	 	 	(885	)	

	 	
EBITDA	 	 	199,753	 	
 	Add: Company share of unconsolidated joint venture EBITDA	 	 	7,510	 	

	 	
 	Consolidated EBITDA	 	$	207,263	 	
Adjusted Interest Expense:	 	 	 	 	
 	Interest Expense (per Consolidated Income Statement)	 	$	75,343	 	
 	Add: Company share of unconsolidated joint venture interest expense	 	 	3,552	 	
 	Less: amortization of financing costs	 	 	(1,129	)	

	 	
Adjusted Interest Expense	 	$	77,766	 	

	 	
Covenant Ratios

	 	Test

	 	Actual

	 	
Total Outstanding Debt/Total Assets	 	Less than 60%	 	 	46.7	%	
Secured Debt/Total Assets	 	Less than 50%	 	 	33.0	%	
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense)	 	Greater than 1.50x	 	 	2.67	 	
Unencumbered Assets/ Unsecured Debt	 	Greater than 150%	 	 	293.7	%	

	 	
Unencumbered Consolidated EBITDA	 	 	 	$	83,504	 	

	 	
Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense)	 	 	 	 	3.76	 	

	 	
% of unencumbered Consolidated EBITDA to Consolidated EBITDA	 	 	 	 	40.3	%	

	 	
# of unencumbered properties	 	 	 	 	71	 	

	 	
(1)
Excludes Fair Value Adjustment of $11.9 million.
(2)
Excludes Debt Discount of $4.8 million.

13

Boston Properties, Inc.
Third Quarter 2003

DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)
Property

	 	2003

	 	2004

	 	2005

	 	2006

	 	2007

	 	Thereafter

	 	Total

	
Citigroup Center	 	$	1,480	 	$	6,191	 	$	6,651	 	$	7,145	 	$	7,676	 	$	483,253	 	$	512,396	
Times Square Tower	 	 	—	 	 	310,362	 	 	—	 	 	—	 	 	—	 	 	—	 	 	310,362	
Embarcadero Center One, Two and Federal Reserve	 	 	1,152	 	 	4,809	 	 	5,141	 	 	5,496	 	 	5,877	 	 	278,913	 	 	301,388	
Prudential Center	 	 	1,115	 	 	4,591	 	 	4,919	 	 	5,256	 	 	5,619	 	 	259,705	 	 	281,205	
280 Park Avenue	 	 	720	 	 	3,022	 	 	3,261	 	 	3,519	 	 	3,798	 	 	248,794	 	 	263,114	
599 Lexington Avenue	 	 	—	 	 	—	 	 	225,000	 	 	—	 	 	—	 	 	—	 	 	225,000	
Embarcadero Center Four	 	 	856	 	 	3,544	 	 	3,797	 	 	4,061	 	 	4,346	 	 	129,711	 	 	146,315	
Embarcadero Center Three	 	 	565	 	 	2,351	 	 	2,506	 	 	2,671	 	 	132,726	 	 	—	 	 	140,819	
Riverfront Plaza	 	 	697	 	 	2,905	 	 	3,104	 	 	3,314	 	 	3,540	 	 	95,327	 	 	108,887	
Democracy Center	 	 	470	 	 	1,961	 	 	2,103	 	 	2,257	 	 	2,421	 	 	93,728	 	 	102,940	
Embarcadero Center West Tower	 	 	372	 	 	1,546	 	 	1,649	 	 	90,415	 	 	—	 	 	—	 	 	93,982	
100 East Pratt Street	 	 	462	 	 	1,964	 	 	2,100	 	 	2,246	 	 	2,401	 	 	78,105	 	 	87,278	
One Freedom Square	 	 	432	 	 	1,792	 	 	1,896	 	 	2,005	 	 	2,122	 	 	75,886	 	 	84,133	
601 and 651 Gateway Boulevard	 	 	—	 	 	—	 	 	—	 	 	82,163	 	 	—	 	 	—	 	 	82,163	
One & Two Reston Overlook	 	 	210	 	 	65,908	 	 	—	 	 	—	 	 	—	 	 	—	 	 	66,118	
202, 206 & 214 Carnegie Center	 	 	156	 	 	663	 	 	719	 	 	780	 	 	845	 	 	58,217	 	 	61,380	
New Dominion Technology Park, Building One	 	 	—	 	 	91	 	 	654	 	 	1,282	 	 	1,378	 	 	54,042	 	 	57,447	
Reservoir Place	 	 	385	 	 	1,321	 	 	1,400	 	 	1,484	 	 	1,572	 	 	50,258	 	 	56,420	
Capital Gallery	 	 	333	 	 	1,404	 	 	1,524	 	 	50,651	 	 	—	 	 	—	 	 	53,912	
504, 506 & 508 Carnegie Center	 	 	257	 	 	1,052	 	 	1,136	 	 	1,221	 	 	1,314	 	 	40,915	 	 	45,895	
14

Boston Properties, Inc.
Third Quarter 2003
DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)
Property

	 	2003

	 	2004

	 	2005

	 	2006

	 	2007

	 	Thereafter

	 	Total

	
10 & 20 Burlington Mall Rd & 91 Hartwell	 	 	110	 	 	688	 	 	741	 	 	795	 	 	855	 	 	35,589	 	 	38,778	
10 Cambridge Center	 	 	144	 	 	607	 	 	659	 	 	715	 	 	777	 	 	31,436	 	 	34,338	
New Dominion Technology Park, Bldg. 2	 	 	—	 	 	—	 	 	31,515	 	 	—	 	 	—	 	 	—	 	 	31,515	
1301 New York Avenue	 	 	313	 	 	1,315	 	 	1,417	 	 	1,531	 	 	1,651	 	 	23,409	 	 	29,636	
Sumner Square	 	 	124	 	 	518	 	 	557	 	 	599	 	 	645	 	 	26,936	 	 	29,379	
Eight Cambridge Center	 	 	133	 	 	557	 	 	601	 	 	649	 	 	702	 	 	24,486	 	 	27,128	
510 Carnegie Center	 	 	142	 	 	588	 	 	635	 	 	683	 	 	735	 	 	23,519	 	 	26,302	
Lockheed Martin Building	 	 	155	 	 	641	 	 	685	 	 	732	 	 	782	 	 	21,799	 	 	24,794	
University Place	 	 	168	 	 	702	 	 	752	 	 	806	 	 	864	 	 	20,338	 	 	23,630	
Reston Corporate Center	 	 	149	 	 	612	 	 	654	 	 	698	 	 	745	 	 	20,523	 	 	23,381	
NIMA Building	 	 	128	 	 	530	 	 	566	 	 	604	 	 	644	 	 	17,785	 	 	20,257	
Bedford Business Park	 	 	163	 	 	690	 	 	751	 	 	818	 	 	890	 	 	16,859	 	 	20,171	
191 Spring Street	 	 	34	 	 	443	 	 	482	 	 	18,773	 	 	—	 	 	—	 	 	19,732	
101 Carnegie Center	 	 	90	 	 	375	 	 	406	 	 	6,622	 	 	—	 	 	—	 	 	7,493	
Montvale Center	 	 	42	 	 	173	 	 	189	 	 	6,762	 	 	—	 	 	—	 	 	7,166	
Hilltop Business Center	 	 	32	 	 	200	 	 	214	 	 	230	 	 	246	 	 	4,336	 	 	5,258	

	 	

	 	

	 	

	 	

	 	

	 	

	
 	 	 	11,589	 	 	424,116	 	 	308,384	 	 	306,983	 	 	185,171	 	 	2,213,869	 	 	3,450,112	

	 	

	 	

	 	

	 	

	 	

	 	

	
Unsecured Senior Notes	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	1,470,231	 	 	1,470,231	
Unsecured Line of Credit	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	
 	 	$	11,589	 	$	424,116	 	$	308,384	 	$	306,983	 	$	185,171	 	$	3,684,100	 	$	4,920,343	

	 	

	 	

	 	

	 	

	 	

	 	

	
15

Boston Properties, Inc.
Third Quarter 2003
UNCONSOLIDATED JOINT VENTURES
Miscellaneous Balance Sheet Information
(unaudited and in thousands)
as of September 30, 2003
 
	 	Market
Square
North

	 	Metropolitan
Square

	 	140
Kendrick
Street

	 	265
Franklin
Street

	 	901
New York
Avenue (1)

	 	801
New Jersey
Avenue (1)

	 	Combined

	
Total Equity (2)	 	$	10,818	 	$	32,085	 	$	5,446	 	$	23,113	 	$	14,170	 	$	3,000	 	$	88,632	

	 	

	 	

	 	

	 	

	 	

	 	

	
Mortgage/Construction loans payable (2)	 	$	48,046	 	$	69,305	 	$	13,953	 	$	18,897	 	$	8,481	 	$	—	 	$	158,682	

	 	

	 	

	 	

	 	

	 	

	 	

	
BXP's nominal ownership percentage	 	 	50.00	%	 	51.00	%	 	25.00	%	 	35.00	%	 	25.00	%	 	50.00	%	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	

Results of Operations
(unaudited and in thousands)
for the three months ended September 30, 2003
 
	 	One
Freedom
Square (3)

	 	Market
Square
North

	 	Metropolitan
Square

	 	140
Kendrick
Street

	 	265
Franklin
Street

	 	Two
Freedom
Square (3)

	 	901
New York
Avenue (1)

	 	801
New Jersey
Avenue (1)

	 	Combined

	 	
REVENUE	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total revenue	 	$	1,393	 	$	5,133	 	$	6,287	 	$	2,805	 	$	3,540	 	$	1,477	 	$	—	 	$	—	 	$	20,635	(4)	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
EXPENSES	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating	 	 	236	 	 	1,519	 	 	2,142	 	 	474	 	 	1,850	 	 	219	 	 	—	 	 	—	 	 	6,440	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
SUBTOTAL	 	 	1,157	 	 	3,614	 	 	4,145	 	 	2,331	 	 	1,690	 	 	1,258	 	 	—	 	 	—	 	 	14,195	 	
Interest	 	 	551	 	 	1,861	 	 	2,824	 	 	1,054	 	 	348	 	 	245	 	 	—	 	 	—	 	 	6,883	 	
Depreciation and amortization	 	 	281	 	 	1,348	 	 	1,162	 	 	350	 	 	693	 	 	206	 	 	—	 	 	—	 	 	4,040	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
NET INCOME	 	$	325	 	$	405	 	$	159	 	$	927	 	$	649	 	$	807	 	$	—	 	$	—	 	$	3,272	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
BXP's share of net income	 	$	81	 	$	203	 	$	81	 	$	347	(5)	$	227	 	$	404	 	$	—	 	$	—	 	$	1,343	 	
BXP's share of depreciation & amortization	 	 	70	 	 	674	 	 	593	 	 	138	 	 	243	 	 	103	 	 	—	 	 	—	 	 	1,821	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
BXP's share of Funds from Operations (FFO)	 	$	151	 	$	877	 	$	674	 	$	485	(5)	$	470	 	$	507	 	$	—	 	$	—	 	$	3,164	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
(1)
Property is currently not in operation (i.e., under construction or undeveloped land).

(2)
Represents the Company's share.

(3)
The Company acquired the remaining outside interests in these joint ventures on August 5, 2003.

(4)
The impact of the straight-line rent adjustment increased revenue by $1,140 for the three months ended September 30, 2003.

(5)
Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.

16

Boston Properties, Inc.
Third Quarter 2003
UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)

Debt Maturities and Principal Payments
(in thousands)
 
	 	2003

	 	2004

	 	2005

	 	2006

	 	2007

	 	Thereafter

	 	Total

	 	
Amount	 	$	423	 	$	20,678	 	$	10,406	 	$	2,085	 	$	2,255	 	$	122,835	 	$	158,682	 	
Weighted Average Rate	 	 	7.91	%	 	2.89	%	 	3.73	%	 	7.91	%	 	7.91	%	 	7.96	%	 	7.02	%	

Floating and Fixed Rate Debt Analysis
 
	 	% of Total Debt

	 	Weighted
Average Rate

	 	Weighted Average
Maturity

	 	 
	
Floating Rate Debt	 	17.25	%	2.53	%	1.4	 	years	
Fixed Rate Debt	 	82.75	%	7.96	%	7.2	 	years	

	 	

	 	

	 	

	
Total Debt	 	100.00	%	7.02	%	6.2	 	years	

	 	

	 	

	 	

	

Debt Maturities and Principal Payments by Property
(in thousands)
Property

	 	2003

	 	2004

	 	2005

	 	2006

	 	2007

	 	Thereafter

	 	Total

	
Metropolitan Square (51%)*	 	$	182	 	$	764	 	$	830	 	$	901	 	$	978	 	$	65,650	 	$	69,305	
Market Square North (50%)*	 	 	204	 	 	860	 	 	926	 	 	1,001	 	 	1,080	 	 	43,975	 	 	48,046	
265 Franklin Street (35%)*	 	 	—	 	 	18,897	 	 	—	 	 	—	 	 	—	 	 	—	 	 	18,897	
140 Kendrick Street (25%)*	 	 	37	 	 	157	 	 	169	 	 	183	 	 	197	 	 	13,210	 	 	13,953	
901 New York Avenue (25%)*	 	 	—	 	 	—	 	 	8,481	 	 	—	 	 	—	 	 	—	 	 	8,481	

	 	

	 	

	 	

	 	

	 	

	 	

	
 	 	$	423	 	$	20,678	 	$	10,406	 	$	2,085	 	$	2,255	 	$	122,835	 	$	158,682	

	 	

	 	

	 	

	 	

	 	

	 	

	
(*)
All amounts represent the Company's share.

17

Boston Properties, Inc.
Third Quarter 2003

PORTFOLIO OVERVIEW — SQUARE FOOTAGE
Rentable Square Footage of In-Service Properties by Location and Type of Property
Geographic Area

	 	Office (1)

	 	Office/Technical

	 	Industrial

	 	Total

	 	% of Total

	 	
Greater Boston	 	7,804,587	(2)	545,206	 	169,273	 	8,519,066	 	27.29	%	
Greater Washington	 	6,249,534	(3)	970,865	 	—	 	7,220,399	 	23.13	%	
Greater San Francisco	 	4,715,032	 	144,366	 	60,000	 	4,919,398	 	15.76	%	
Midtown Manhattan	 	6,546,093	 	—	 	—	 	6,546,093	 	20.97	%	
Princeton/East Brunswick, NJ	 	2,316,023	 	—	 	—	 	2,316,023	 	7.42	%	
Baltimore, MD	 	635,223	 	—	 	—	 	635,223	 	2.03	%	
Richmond, VA	 	900,137	 	—	 	—	 	900,137	 	2.88	%	
Bucks County, PA	 	—	 	—	 	161,000	 	161,000	 	0.52	%	

	 	

	 	

	 	

	 	

	 	
 	 	29,166,629	 	1,660,437	 	390,273	 	31,217,339	 	100.00	%	

	 	

	 	

	 	

	 	

	 	
% of Total	 	93.43	%	5.32	%	1.25	%	100.00	%	 	 	

Hotel Properties
Hotel Properties

	 	Number of
Rooms

	 	Square
Feet

	
 	Long Wharf Marriott, Boston, MA	 	402	 	420,000	
 	Cambridge Center Marriott, Cambridge, MA	 	431	 	330,400	
 	Residence Inn by Marriott, Cambridge, MA	 	221	 	187,474	

	 	

	
Total Hotel Properties	 	1,054	 	937,874	

	 	

	

Structured Parking
 
	 	Number of
Spaces

	 	Square
Feet

	
Total Structured Parking	 	30,812	 	9,318,846	

	 	

	
(1)
Includes approximately 1,300,000 square feet of retail space.

(2)
Includes 344,126 square feet at 265 Franklin Street which is 35% owned by Boston Properties and 380,987 square feet at 140 Kendrick Street which is 25% owned by Boston Properties.

(3)
Includes 585,220 square feet at Metropolitan Square which is 51% owned by Boston Properties and 401,279 square feet at Market Square North which is 50% owned by Boston Properties.

18

Boston Properties, Inc.
Third Quarter 2003

In-Service Property Listing
as of September 30, 2003
Greater Boston

	 	Sub Market

	 	Number of
Buildings

	 	Square Feet

	 	Leased %

	 	Annualized
Revenue
Per
Leased SF

	 	Encumbered
with secured
debt
(Y/N)

	 	Central
Business
District (CBD) or
Suburban (S)

	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	800 Boylston Street—The Prudential Center	 	CBD Boston MA	 	1	 	1,175,739	 	90.8	%	$	38.07	 	Y	 	CBD	
 	 	111 Huntington Avenue—The Prudential Center	 	CBD Boston MA	 	1	 	853,672	 	99.0	%	 	49.12	 	N	 	CBD	
 	 	101 Huntington Avenue—The Prudential Center	 	CBD Boston MA	 	1	 	504,488	 	80.1	%	 	39.69	 	Y	 	CBD	
(1)	 	The Shops at the Prudential Center	 	CBD Boston MA	 	1	 	535,755	 	95.7	%	 	50.47	 	Y	 	CBD	
(2)	 	Shaws Supermarket at the Prudential Center	 	CBD Boston MA	 	1	 	57,235	 	100.0	%	 	44.79	 	N	 	CBD	
 	 	265 Franklin Street (35% ownership)	 	CBD Boston MA	 	1	 	344,126	 	74.6	%	 	54.88	 	Y	 	CBD	
 	 	One Cambridge Center	 	East Cambridge MA	 	1	 	215,385	 	93.5	%	 	44.20	 	N	 	CBD	
 	 	Three Cambridge Center	 	East Cambridge MA	 	1	 	107,484	 	100.0	%	 	31.56	 	N	 	CBD	
 	 	Eight Cambridge Center	 	East Cambridge MA	 	1	 	177,226	 	100.0	%	 	31.87	 	Y	 	CBD	
 	 	Ten Cambridge Center	 	East Cambridge MA	 	1	 	152,664	 	100.0	%	 	32.39	 	Y	 	CBD	
 	 	Eleven Cambridge Center	 	East Cambridge MA	 	1	 	79,616	 	100.0	%	 	43.49	 	N	 	CBD	
 	 	University Place	 	Mid-Cambridge MA	 	1	 	195,282	 	100.0	%	 	36.76	 	Y	 	CBD	
 	 	Reservoir Place	 	Route 128 Mass Turnpike MA	 	1	 	526,165	 	80.0	%	 	32.48	 	Y	 	S	
 	 	204 Second Avenue	 	Route 128 Mass Turnpike MA	 	1	 	40,974	 	52.7	%	 	36.56	 	N	 	S	
 	 	140 Kendrick Street (25% ownership)	 	Route 128 Mass Turnpike MA	 	3	 	380,987	 	100.0	%	 	27.53	 	Y	 	S	
 	 	170 Tracer Lane	 	Route 128 Mass Turnpike MA	 	1	 	75,073	 	56.0	%	 	25.50	 	N	 	S	
 	 	Waltham Office Center	 	Route 128 Mass Turnpike MA	 	3	 	129,041	 	85.1	%	 	29.98	 	N	 	S	
 	 	195 West Street	 	Route 128 Mass Turnpike MA	 	1	 	63,500	 	100.0	%	 	47.17	 	N	 	S	
 	 	200 West Street	 	Route 128 Mass Turnpike MA	 	1	 	248,048	 	100.0	%	 	35.15	 	N	 	S	
(2)	 	Waltham Weston Corporate Center	 	Route 128 Mass Turnpike MA	 	1	 	306,354	 	56.3	%	 	28.40	 	N	 	S	
 	 	10 & 20 Burlington Mall Road	 	Route 128 Northwest MA	 	2	 	152,960	 	89.3	%	 	28.94	 	Y	 	S	
 	 	Bedford Business Park	 	Route 128 Northwest MA	 	1	 	90,000	 	100.0	%	 	20.70	 	Y	 	S	
 	 	32 Hartwell Avenue	 	Route 128 Northwest MA	 	1	 	69,154	 	100.0	%	 	29.38	 	N	 	S	
 	 	91 Hartwell Avenue	 	Route 128 Northwest MA	 	1	 	121,486	 	79.6	%	 	34.43	 	Y	 	S	
 	 	92 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	31,100	 	100.0	%	 	51.99	 	N	 	S	
 	 	100 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	55,924	 	100.0	%	 	8.92	 	N	 	S	
 	 	33 Hayden Avenue	 	Route 128 Northwest MA	 	1	 	80,872	 	43.3	%	 	30.46	 	N	 	S	
 	 	Lexington Office Park	 	Route 128 Northwest MA	 	2	 	166,735	 	83.0	%	 	29.62	 	N	 	S	
 	 	191 Spring Street	 	Route 128 Northwest MA	 	1	 	162,700	 	100.0	%	 	30.04	 	Y	 	S	
 	 	181 Spring Street	 	Route 128 Northwest MA	 	1	 	53,595	 	41.2	%	 	35.95	 	N	 	S	
 	 	201 Spring Street	 	Route 128 Northwest MA	 	1	 	102,500	 	100.0	%	 	32.91	 	N	 	S	
 	 	40 Shattuck Road	 	Route 128 Northwest MA	 	1	 	120,000	 	95.6	%	 	27.45	 	N	 	S	
 	 	Quorum Office Park	 	Route 128 Northwest MA	 	2	 	259,918	 	100.0	%	 	19.33	 	N	 	S	
 	 	Newport Office Park	 	Route 128 South MA	 	1	 	168,829	 	44.6	%	 	25.38	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	 	41	 	7,804,587	 	88.5	%	$	37.32	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Office/Technical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Fourteen Cambridge Center	 	East Cambridge MA	 	1	 	67,362	 	100.0	%	 	22.00	 	N	 	CBD	
 	 	Bedford Business Park	 	Route 128 Northwest MA	 	2	 	383,704	 	100.0	%	 	15.95	 	Y	 	S	
 	 	17 Hartwell Avenue	 	Route 128 Northwest MA	 	1	 	30,000	 	100.0	%	 	12.00	 	N	 	S	
 	 	164 Lexington Road	 	Route 128 Northwest MA	 	1	 	64,140	 	100.0	%	 	10.55	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	 	5	 	545,206	 	100.0	%	$	15.84	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Industrial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	40-46 Harvard Street	 	Route 128 Southwest MA	 	1	 	169,273	 	0.0	%	 	—	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	Total Greater Boston:	 	47	 	8,519,066	 	87.5	%	 	 	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	

(1)
93,856 square feet of space is unencumbered.

(2)
Not included in same property analysis

19

Boston Properties, Inc.
Third Quarter 2003

In-Service Property Listing
as of September 30, 2003
Greater Washington, DC

	 	Sub Market

	 	Number of
Buildings

	 	Square Feet

	 	Leased %

	 	Annualized
Revenue
Per
Leased SF

	 	Encumbered
with secured
debt
(Y/N)

	 	Central
Business
District (CBD) or
Suburban (S)

	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Capital Gallery	 	Southwest Washington DC	 	1	 	396,894	 	100.0	%	$	37.68	 	Y	 	CBD	
 	 	500 E Street, N.W.	 	Southwest Washington DC	 	1	 	242,769	 	100.0	%	 	33.65	 	N	 	CBD	
 	 	Metropolitan Square (51% ownership)	 	East End Washington DC	 	1	 	585,220	 	98.2	%	 	40.01	 	Y	 	CBD	
 	 	1301 New York Avenue	 	East End Washington DC	 	1	 	188,358	 	100.0	%	 	30.49	 	Y	 	CBD	
 	 	Market Square North (50% ownership)	 	East End Washington DC	 	1	 	401,279	 	100.0	%	 	45.07	 	Y	 	CBD	
 	 	Sumner Square	 	CBD Washington DC	 	1	 	207,620	 	100.0	%	 	35.15	 	Y	 	CBD	
 	 	Decoverly Two	 	Montgomery County MD	 	1	 	77,747	 	100.0	%	 	24.79	 	N	 	S	
 	 	Decoverly Three	 	Montgomery County MD	 	1	 	77,040	 	93.1	%	 	25.92	 	N	 	S	
 	 	Democracy Center	 	Montgomery County MD	 	3	 	680,644	 	87.0	%	 	30.45	 	Y	 	S	
 	 	Montvale Center	 	Montgomery County MD	 	1	 	120,823	 	85.8	%	 	24.45	 	Y	 	S	
 	 	2600 Tower Oaks Boulevard	 	Montgomery County MD	 	1	 	178,887	 	100.0	%	 	33.10	 	N	 	S	
 	 	Orbital Sciences 1&3	 	Loudoun County	 	2	 	176,726	 	100.0	%	 	23.67	 	N	 	S	
 	 	Orbital Sciences 2	 	Loudoun County	 	1	 	160,502	 	100.0	%	 	24.01	 	N	 	S	
 	 	The Arboretum	 	Fairfax County VA	 	1	 	95,584	 	100.0	%	 	26.34	 	N	 	S	
(1)	 	One Freedom Square	 	Fairfax County VA	 	1	 	410,308	 	100.0	%	 	34.34	 	Y	 	S	
(1)	 	Two Freedom Square	 	Fairfax County VA	 	1	 	422,504	 	99.6	%	 	34.13	 	N	 	S	
 	 	One Reston Overlook	 	Fairfax County VA	 	1	 	312,685	 	100.0	%	 	24.46	 	Y	 	S	
 	 	Two Reston Overlook	 	Fairfax County VA	 	1	 	131,594	 	82.2	%	 	32.91	 	Y	 	S	
(1)	 	One Discovery Square	 	Fairfax County VA	 	1	 	181,019	 	100.0	%	 	36.68	 	N	 	S	
(1)	 	Two Discovery Square	 	Fairfax County VA	 	1	 	185,970	 	92.8	%	 	32.21	 	N	 	S	
 	 	New Dominion Technology Park	 	Fairfax County VA	 	1	 	235,201	 	100.0	%	 	26.86	 	Y	 	S	
 	 	Reston Corporate Center	 	Fairfax County VA	 	2	 	261,046	 	100.0	%	 	32.56	 	Y	 	S	
 	 	Lockheed Martin Building	 	Fairfax County VA	 	1	 	255,244	 	100.0	%	 	30.59	 	Y	 	S	
 	 	NIMA Building	 	Fairfax County VA	 	1	 	263,870	 	100.0	%	 	29.44	 	Y	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	 	28	 	6,249,534	 	97.4	%	$	32.90	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Office/Technical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
(1)	 	Broad Run Business Park	 	Loudoun County	 	1	 	127,226	 	54.7	%	 	22.18	 	N	 	S	
 	 	Sugarland Business Park, Building One	 	Fairfax County VA	 	1	 	52,797	 	22.8	%	 	22.67	 	N	 	S	
 	 	Sugarland Business Park, Building Two	 	Fairfax County VA	 	1	 	59,215	 	65.9	%	 	20.69	 	N	 	S	
 	 	7435 Boston Boulevard	 	Fairfax County VA	 	1	 	103,557	 	82.3	%	 	15.59	 	N	 	S	
 	 	7451 Boston Boulevard	 	Fairfax County VA	 	1	 	47,001	 	100.0	%	 	20.97	 	N	 	S	
 	 	7450 Boston Boulevard	 	Fairfax County VA	 	1	 	62,402	 	100.0	%	 	20.43	 	N	 	S	
 	 	7374 Boston Boulevard	 	Fairfax County VA	 	1	 	57,321	 	100.0	%	 	13.88	 	N	 	S	
 	 	8000 Grainger Court	 	Fairfax County VA	 	1	 	90,465	 	36.9	%	 	16.20	 	N	 	S	
 	 	7500 Boston Boulevard	 	Fairfax County VA	 	1	 	79,971	 	100.0	%	 	14.63	 	N	 	S	
 	 	7501 Boston Boulevard	 	Fairfax County VA	 	1	 	75,756	 	100.0	%	 	23.52	 	N	 	S	
 	 	7601 Boston Boulevard	 	Fairfax County VA	 	1	 	103,750	 	100.0	%	 	14.17	 	N	 	S	
 	 	7375 Boston Boulevard	 	Fairfax County VA	 	1	 	26,865	 	100.0	%	 	17.82	 	N	 	S	
 	 	8000 Corporate Court	 	Fairfax County VA	 	1	 	52,539	 	100.0	%	 	10.51	 	N	 	S	
 	 	7300 Boston Boulevard	 	Fairfax County VA	 	1	 	32,000	 	100.0	%	 	20.86	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	 	14	 	970,865	 	80.0	%	$	17.60	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	Total Greater Washington:	 	42	 	7,220,399	 	95.1	%	 	 	 	 	 	 	

	 	

	 	

	 	 	 	 	 	 	 	

(1)
Not included in same property analysis

20

Boston Properties, Inc.
Third Quarter 2003

In-Service Property Listing
as of September 30, 2003
Midtown Manhattan

	 	Sub Market

	 	Number of
Buildings

	 	Square Feet

	 	Leased %

	 	Annualized
Revenue
Per
Leased SF

	 	Encumbered
with secured
debt
(Y/N)

	 	Central
Business
District (CBD) or
Suburban (S)

	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	599 Lexington Avenue	 	Park Avenue NY	 	1	 	1,019,341	 	95.4	%	$	64.14	 	Y	 	CBD	
 	280 Park Avenue	 	Park Avenue NY	 	1	 	1,170,080	 	98.5	%	 	57.28	 	Y	 	CBD	
 	Citigroup Center	 	Park Avenue NY	 	1	 	1,576,803	 	99.9	%	 	60.62	 	Y	 	CBD	
(1)	399 Park Avenue	 	Park Avenue NY	 	1	 	1,678,090	 	99.5	%	 	70.36	 	N	 	CBD	
 	5 Times Square	 	Times Square NY	 	1	 	1,101,779	 	100.0	%	 	53.22	 	N	 	CBD	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	Total Midtown Manhattan:	 	5	 	6,546,093	 	98.9	%	$	61.81	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Princeton/East Brunswick, NJ	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	101 Carnegie Center	 	Princeton NJ	 	1	 	123,659	 	100.0	%	$	28.19	 	Y	 	S	
 	104 Carnegie Center	 	Princeton NJ	 	1	 	102,830	 	85.2	%	 	33.07	 	N	 	S	
 	105 Carnegie Center	 	Princeton NJ	 	1	 	69,648	 	100.0	%	 	29.39	 	N	 	S	
 	201 Carnegie Center	 	Princeton NJ	 	—	 	6,500	 	100.0	%	 	27.42	 	N	 	S	
 	202 Carnegie Center	 	Princeton NJ	 	1	 	128,730	 	97.6	%	 	30.78	 	Y	 	S	
 	206 Carnegie Center	 	Princeton NJ	 	1	 	161,763	 	100.0	%	 	28.98	 	Y	 	S	
 	210 Carnegie Center	 	Princeton NJ	 	1	 	161,112	 	100.0	%	 	30.82	 	N	 	S	
 	211 Carnegie Center	 	Princeton NJ	 	1	 	47,025	 	100.0	%	 	25.51	 	N	 	S	
 	212 Carnegie Center	 	Princeton NJ	 	1	 	148,233	 	98.5	%	 	32.47	 	N	 	S	
 	214 Carnegie Center	 	Princeton NJ	 	1	 	150,416	 	95.4	%	 	29.38	 	Y	 	S	
 	302 Carnegie Center	 	Princeton NJ	 	1	 	65,135	 	95.5	%	 	31.65	 	N	 	S	
 	502 Carnegie Center	 	Princeton NJ	 	1	 	116,374	 	95.3	%	 	32.64	 	N	 	S	
 	504 Carnegie Center	 	Princeton NJ	 	1	 	121,990	 	100.0	%	 	27.67	 	Y	 	S	
 	506 Carnegie Center	 	Princeton NJ	 	1	 	136,213	 	88.3	%	 	29.82	 	Y	 	S	
 	508 Carnegie Center	 	Princeton NJ	 	1	 	131,085	 	100.0	%	 	27.73	 	Y	 	S	
 	510 Carnegie Center	 	Princeton NJ	 	1	 	234,160	 	100.0	%	 	27.30	 	Y	 	S	
 	One Tower Center	 	East Brunswick NJ	 	1	 	411,150	 	84.3	%	 	34.09	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	Total Princeton/East Brunswick, NJ:	 	16	 	2,316,023	 	95.0	%	$	30.31	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Greater San Francisco	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Embarcadero Center One	 	CBD San Francisco CA	 	1	 	836,584	 	96.2	%	$	42.81	 	Y	 	CBD	
 	Embarcadero Center Two	 	CBD San Francisco CA	 	1	 	779,219	 	86.9	%	 	47.06	 	Y	 	CBD	
 	Embarcadero Center Three	 	CBD San Francisco CA	 	1	 	773,693	 	86.3	%	 	42.04	 	Y	 	CBD	
 	Embarcadero Center Four	 	CBD San Francisco CA	 	1	 	936,432	 	91.1	%	 	62.78	 	Y	 	CBD	
 	Federal Reserve	 	CBD San Francisco CA	 	1	 	149,592	 	99.8	%	 	49.19	 	Y	 	CBD	
 	West Tower	 	CBD San Francisco CA	 	1	 	473,774	 	98.6	%	 	44.22	 	Y	 	CBD	
(1)	611 Gateway	 	South San Francisco CA	 	1	 	250,825	 	0.0	%	 	—	 	N	 	S	
 	601 and 651 Gateway	 	South San Francisco CA	 	2	 	514,913	 	81.8	%	 	34.76	 	Y	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	9	 	4,715,032	 	85.7	%	$	47.17	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
Office/Technical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
 	Hilltop Office Center	 	South San Francisco CA	 	9	 	144,366	 	74.9	%	$	14.10	 	Y	 	S	

	 	

	 	

	 	

	 	 	 	 	
Industrial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	560 Forbes Blvd	 	South San Francisco CA	 	1	 	40,000	 	100.0	%	 	10.62	 	N	 	S	
 	430 Rozzi Place	 	South San Francisco CA	 	1	 	20,000	 	100.0	%	 	12.09	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	 	 	2	 	60,000	 	100.0	%	$	11.11	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	Total Greater San Francisco:	 	20	 	4,919,398	 	85.5	%	 	 	 	 	 	 	

	 	

	 	

	 	 	 	 	 	 	 	

(1)
Not included in same property analysis

21

Boston Properties, Inc.
Third Quarter 2003

In-Service Property Listing
as of September 30, 2003

	 	Sub Market

	 	Number of
Buildings

	 	Square Feet

	 	Leased %

	 	Annualized
Revenue
Per
Leased SF

	 	Encumbered
with secured
debt
(Y/N)

	 	Central
Business
District (CBD) or
Suburban (S)

	
Baltimore, MD	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	 	 	 	
 	100 East Pratt Street	 	Baltimore MD	 	1	 	635,223	 	98.5	%	$	30.70	 	Y	 	CBD	

	 	

	 	

	 	

	 	 	 	 	
Richmond, VA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Riverfront Plaza	 	Richmond VA	 	1	 	900,137	 	88.9	%	$	24.84	 	Y	 	CBD	

	 	

	 	

	 	

	 	 	 	 	
Bucks County, PA	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Industrial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	38 Cabot Boulevard	 	Bucks County PA	 	1	 	161,000	 	100.0	%	$	4.81	 	N	 	S	

	 	

	 	

	 	

	 	 	 	 	
 	 	 	Total In-Service Properties:	 	133	 	31,217,339	 	92.2	%	 	 	 	 	 	 	

	 	

	 	

	 	 	 	 	 	 	 	
22

Boston Properties, Inc.
Third Quarter 2003

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS BY SQUARE FEET LEASED
 
	 	Tenant

	 	Sq. Ft.

	 	% of
Portfolio

	 	
1	 	U.S. Government	 	1,397,980	 	4.48	%	
2	 	Citibank, N.A.	 	1,231,068	 	3.94	%	
3	 	Ernst and Young	 	1,064,939	 	3.41	%	
4	 	Shearman & Sterling	 	585,808	 	1.88	%	
5	 	Lockheed Martin Corporation	 	570,314	 	1.83	%	
6	 	Gillette Company	 	485,932	 	1.56	%	
7	 	Parametric Technology Corp.	 	470,987	(1)	1.51	%	
8	 	Wachovia	 	456,533	 	1.46	%	
9	 	Lehman Brothers	 	436,723	 	1.40	%	
10	 	Washington Group International	 	365,245	 	1.17	%	
11	 	Deutsche Bank Trust	 	346,617	 	1.11	%	
12	 	Orbital Sciences Corporation	 	337,228	 	1.08	%	
13	 	TRW, Inc.	 	309,689	 	0.99	%	
14	 	T. Rowe Price Associates, Inc.	 	304,129	 	0.97	%	
15	 	Hunton & Williams	 	296,671	 	0.95	%	
16	 	Kirkland & Ellis	 	294,821	 	0.94	%	
17	 	Digitas	 	279,182	 	0.89	%	
18	 	Bingham McCutchen	 	267,905	 	0.86	%	
19	 	Accenture	 	265,622	 	0.85	%	
20	 	Tellabs Operations	 	259,918	 	0.83	%	

 	
Total % of Portfolio Square Feet	

 	
32.12	
%	

 	
Total % of Portfolio Revenue	

 	
35.18	
%	

Major Signed Deals for Future Development
Tenant

	 	Property

	 	Sq. Ft.

	
U.S. Government	 	New Dominion Tech.	 	257,400	
Finnegan Henderson Farabow Garrett & Dunner, LLP	 	901 New York Ave.	 	251,337	
O'Melveny & Myers	 	Times Square Tower	 	220,887	

(1)
Includes 380,987 square feet of space in a property in which Boston Properties has a 25% interest.

TENANT DIVERSIFICATION (GROSS RENT) *

*
The classification of the Company's tenants is based on the U.S. Government's North American Industry Classification System (NAICS), which has replaced the Standard Industrial Classification (SIC) system.

23

Boston Properties, Inc.
Third Quarter 2003

PORTFOLIO OVERVIEW

Percentage of Rental Revenues Less Operating Expenses and Real Estate Taxes for In-Service Properties by Location and Type of Property for the Quarter Ended September 30, 2003
Geographic Area

	 	Office (1)

	 	Office/
Technical

	 	Industrial

	 	Hotel

	 	Total

	 	
Greater Boston	 	20.8	%	0.8	%	—	 	2.3	%	23.9	%	
Greater Washington	 	16.0	%	1.1	%	—	 	—	 	17.0	%	
Greater San Francisco	 	15.3	%	—	 	0.1	%	—	 	15.4	%	
Midtown Manhattan	 	35.0	%	—	 	—	 	—	 	35.0	%	
Princeton/East Brunswick, NJ	 	5.0	%	—	 	0.1	%	—	 	5.1	%	
Baltimore, MD	 	1.8	%	—	 	—	 	—	 	1.8	%	
Richmond, VA	 	1.8	%	—	 	—	 	—	 	1.8	%	
Bucks County, PA	 	—	 	—	 	—	 	—	 	—	 	

	 	

	 	

	 	

	 	

	 	
 	Total	 	95.6	%	1.9	%	0.2	%	2.3	%	100.0	%	

	 	

	 	

	 	

	 	

	 	
Geographic Area

	 	CBD

	 	Suburban

	 	Total

	 	
Greater Boston	 	17.0	%	6.9	%	23.9	%	
Greater Washington	 	5.0	%	12.0	%	17.0	%	
Greater San Francisco	 	13.6	%	1.7	%	15.3	%	
Midtown Manhattan	 	35.0	%	—	 	35.0	%	
Princeton/East Brunswick, NJ	 	—	 	5.1	%	5.1	%	
Baltimore, MD	 	1.8	%	—	 	1.8	%	
Richmond, VA	 	1.8	%	—	 	1.8	%	
Bucks County, PA	 	—	 	0.1	%	0.1	%	

	 	

	 	

	 	
Total	 	74.2	%	25.8	%	100.0	%	

	 	

	 	

	 	
(1) Includes retail space at Prudential Center and Embarcadero Center.

24

Boston Properties, Inc.
Third Quarter 2003

OCCUPANCY ANALYSIS

Same Property Occupancy—By Location

	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	
Location

	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	 	
Greater Boston	 	92.3%	 	93.1%	 	84.2%	 	95.1%	 	88.6%	 	94.0%	 	 	
Greater Washington	 	99.5%	 	99.6%	 	92.9%	 	96.5%	 	95.2%	 	97.6%	 	 	
Midtown Manhattan	 	98.6%	 	98.6%	 	—	 	—	 	98.6%	 	98.6%	 	 	
Baltimore, MD	 	98.5%	 	98.2%	 	—	 	—	 	98.5%	 	98.2%	 	 	
Princeton/East Brunswick, NJ	 	—	 	—	 	95.0%	 	93.0%	 	95.0%	 	93.0%	 	 	
Richmond, VA	 	88.9%	 	92.0%	 	—	 	—	 	88.9%	 	92.0%	 	 	
Greater San Francisco	 	91.6%	 	93.8%	 	60.7%	 	64.4%	 	85.5%	 	88.1%	 	 	
Bucks County, PA	 	—	 	—	 	100.0%	 	100.0%	 	100.0%	 	100.0%	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	
 	Total Portfolio	 	94.9%	 	95.8%	 	87.7%	 	92.5%	 	92.0%	 	94.5%	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	
Same Property—By Type of Property

	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	
Location

	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	
Total Office Portfolio	 	94.9%	 	95.8%	 	88.9%	 	91.9%	 	92.8%	 	94.4%	 	
Total Office/Technical Portfolio	 	100.0%	 	100.0%	 	88.0%	 	94.7%	 	88.5%	 	95.0%	 	
Total Industrial Portfolio	 	—	 	—	 	56.6%	 	100.0%	 	56.6%	 	100.0%	 	

	 	

	 	

	 	

	 	

	 	

	 	
Total Portfolio	 	94.9%	 	95.8%	 	87.7%	 	92.5%	 	92.0%	 	94.5%	 	

	 	

	 	

	 	

	 	

	 	

	 	
25

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE OFFICE PROPERTIES

Lease Expirations

	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases p.s.f.

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Annualized Revenues Under Expiring Leases with future step-ups p.s.f.

	 	Percentage of Total Square Feet

	
2003	 	460,096	 	$	15,611,328	 	$	33.93	 	$	15,611,328	 	$	33.93	 	1.65%	
2004	 	1,863,303	 	 	75,138,566	 	 	40.33	 	 	75,269,801	 	 	40.40	 	6.69%	
2005	 	2,271,106	 	 	84,369,599	 	 	37.15	 	 	85,730,089	 	 	37.75	 	8.15%	
2006	 	2,910,482	 	 	120,169,346	 	 	41.29	 	 	123,415,280	 	 	42.40	 	10.44%	
2007	 	2,035,274	 	 	79,252,003	 	 	38.94	 	 	82,675,081	 	 	40.62	 	7.30%	
2008	 	1,448,094	 	 	62,313,825	 	 	43.03	 	 	64,790,712	 	 	44.74	 	5.20%	
2009	 	2,758,876	 	 	104,958,044	 	 	38.04	 	 	112,754,890	 	 	40.87	 	9.90%	
2010	 	1,631,917	 	 	71,394,248	 	 	43.75	 	 	78,967,016	 	 	48.39	 	5.86%	
2011	 	2,673,009	 	 	109,370,521	 	 	40.92	 	 	125,287,261	 	 	46.87	 	9.59%	
2012	 	2,093,045	 	 	97,010,634	 	 	46.35	 	 	105,087,278	 	 	50.21	 	7.51%	
Thereafter	 	5,672,395	 	 	273,074,052	 	 	48.14	 	 	327,484,728	 	 	57.73	 	20.35%	
Occupancy By Location*

	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	
Location

	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	 	
Greater Boston	 	92.2%	 	92.7%	 	83.7%	 	94.4%	 	88.5%	 	93.5%	 	 	
Greater Washington	 	99.5%	 	99.6%	 	96.5%	 	97.9%	 	97.4%	 	98.7%	 	 	
Midtown Manhattan	 	98.9%	 	98.2%	 	—	 	—	 	98.9%	 	98.2%	 	 	
Baltimore, MD	 	98.5%	 	97.2%	 	—	 	—	 	98.5%	 	97.2%	 	 	
Princeton/East Brunswick, NJ	 	—	 	—	 	95.0%	 	93.0%	 	95.0%	 	93.0%	 	 	
Richmond, VA	 	88.9%	 	92.0%	 	—	 	—	 	88.9%	 	92.0%	 	 	
Greater San Francisco	 	91.6%	 	93.8%	 	55.0%	 	57.2%	 	85.7%	 	87.9%	 	 	
Bucks County, PA	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	
 	Total Portfolio	 	95.3%	 	96.2%	 	89.1%	 	92.5%	 	93.0%	 	95.0%	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	

*
Includes approximately 1,300,000 square feet of retail space.

26

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE OFFICE/TECHNICAL PROPERTIES

	 	
Lease Expirations

	 	
Year of Lease
Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases p.s.f.

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.

	 	Percentage of Total Square Feet

	 	
2003	 	14,100	 	$	239,599	 	$	16.99	 	$	239,599	 	$	16.99	 	0.85	%	
2004	 	98,546	 	 	1,787,360	 	 	18.14	 	 	1,795,467	 	 	18.22	 	5.93	%	
2005	 	156,284	 	 	2,235,477	 	 	14.30	 	 	2,294,794	 	 	14.68	 	9.41	%	
2006	 	300,104	 	 	4,369,484	 	 	14.56	 	 	4,408,037	 	 	14.69	 	18.07	%	
2007	 	317,912	 	 	5,566,352	 	 	17.51	 	 	5,915,503	 	 	18.61	 	19.15	%	
2008	 	61,338	 	 	1,351,067	 	 	22.03	 	 	1,387,593	 	 	22.62	 	3.69	%	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2010	 	79,971	 	 	1,169,716	 	 	14.63	 	 	1,171,896	 	 	14.65	 	4.82	%	
2011	 	137,321	 	 	2,378,584	 	 	17.32	 	 	2,578,584	 	 	18.78	 	8.27	%	
2012	 	72,362	 	 	1,635,627	 	 	22.60	 	 	1,817,191	 	 	25.11	 	4.36	%	
Thereafter	 	205,304	 	 	3,680,039	 	 	17.92	 	 	4,291,374	 	 	20.90	 	12.36	%	
Occupancy By Location

	 	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	 	
Location

	 	 	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	
Greater Boston	 	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	 	 	 	
Greater Washington	 	—	 	—	 	80.0	%	93.1	%	80.0	%	93.1	%	 	 	 	
Midtown Manhattan	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Baltimore, MD	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Princeton/East Brunswick, NJ	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Richmond, VA	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Greater San Francisco	 	—	 	—	 	74.9	%	87.5	%	74.9	%	87.5	%	 	 	 	
Bucks County, PA	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
 	Total Portfolio	 	100.0	%	100.0	%	85.5	%	94.8	%	86.1	%	95.0	%	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
27

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE INDUSTRIAL PROPERTIES

	 	
Lease Expirations

	 	
Year of Lease
Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases p.s.f.

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.

	 	Percentage of Total Square Feet

	 	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	
2004	 	201,000	 	 	1,199,258	 	 	5.97	 	 	1,208,858	 	 	6.01	 	51.50	%	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2007	 	20,000	 	 	241,890	 	 	12.09	 	 	260,859	 	 	13.04	 	5.12	%	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	
Occupancy By Location

	 	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	 	
Location

	 	 	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	
Greater Boston	 	—	 	—	 	0.0	%	100.0	%	0.0	%	100.0	%	 	 	 	
Greater Washington	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Midtown Manhattan	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Baltimore, MD	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Princeton/East Brunswick, NJ	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Richmond, VA	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	n/a	 	 	 	 	
Greater San Francisco	 	—	 	—	 	100.0	%	100.0	%	100.0	%	100.0	%	 	 	 	
Bucks County, PA	 	—	 	—	 	100.0	%	100.0	%	100.0	%	100.0	%	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
 	Total Portfolio	 	—	 	—	 	56.6	%	100.0	%	56.6	%	100.0	%	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
28

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE RETAIL PROPERTIES

	 	
Lease Expirations

	 	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases p.s.f.

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.

	 	Percentage of Total Square Feet

	 	
2003	 	30,940	 	$	2,208,541	 	$	71.38	 	$	2,213,059	 	$	71.53	 	2.38	%	
2004	 	76,004	 	 	5,920,231	 	 	77.89	 	 	5,809,735	 	 	76.44	 	5.85	%	
2005	 	106,602	 	 	4,786,977	 	 	44.91	 	 	4,828,942	 	 	45.30	 	8.21	%	
2006	 	58,475	 	 	3,031,003	 	 	51.83	 	 	3,053,572	 	 	52.22	 	4.50	%	
2007	 	44,722	 	 	2,208,770	 	 	49.39	 	 	2,329,564	 	 	52.09	 	3.44	%	
2008	 	80,995	 	 	3,927,609	 	 	48.49	 	 	4,079,165	 	 	50.36	 	6.24	%	
2009	 	40,371	 	 	1,882,762	 	 	46.64	 	 	1,961,945	 	 	48.60	 	3.11	%	
2010	 	83,166	 	 	3,400,687	 	 	40.89	 	 	3,827,111	 	 	46.02	 	6.40	%	
2011	 	42,241	 	 	2,642,233	 	 	62.55	 	 	3,059,400	 	 	72.43	 	3.25	%	
2012	 	103,652	 	 	4,936,019	 	 	47.62	 	 	5,577,803	 	 	53.81	 	7.98	%	
Thereafter	 	631,547	 	 	32,323,002	 	 	51.18	 	 	39,959,231	 	 	63.27	 	48.63	%	
29

Boston Properties, Inc.
Third Quarter 2003
GRAND TOTAL OF ALL IN-SERVICE PROPERTIES

	 	
Lease Expiration

	 	
Year of Lease
Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases p.s.f.

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Annualized Revenues Under Expiring Leases with future step-ups – p.s.f.

	 	Percentage of Total Square Feet

	 	
2003	 	505,136	 	$	18,059,468	 	$	35.75	 	$	18,063,986	 	$	35.76	 	1.6	%	
2004	 	2,238,853	 	 	84,045,414	 	 	37.54	 	 	84,083,861	 	 	37.56	 	7.2	%	
2005	 	2,533,992	 	 	91,392,053	 	 	36.07	 	 	92,853,825	 	 	36.64	 	8.1	%	
2006	 	3,269,061	 	 	127,569,833	 	 	39.02	 	 	130,876,889	 	 	40.04	 	10.5	%	
2007	 	2,417,908	 	 	87,269,016	 	 	36.09	 	 	91,181,006	 	 	37.71	 	7.7	%	
2008	 	1,590,427	 	 	67,592,500	 	 	42.50	 	 	70,257,471	 	 	44.18	 	5.1	%	
2009	 	2,799,247	 	 	106,840,806	 	 	38.17	 	 	114,716,836	 	 	40.98	 	9.0	%	
2010	 	1,795,054	 	 	75,964,652	 	 	42.32	 	 	83,966,023	 	 	46.78	 	5.8	%	
2011	 	2,852,571	 	 	114,391,338	 	 	40.10	 	 	130,925,245	 	 	45.90	 	9.1	%	
2012	 	2,269,059	 	 	103,582,279	 	 	45.65	 	 	112,482,271	 	 	49.57	 	7.3	%	
Thereafter	 	6,439,692	 	 	307,534,238	 	 	47.76	 	 	369,810,584	 	 	57.43	 	20.6	%	
Occupancy By Location

	 	 	
 
	 	CBD

	 	Suburban

	 	Total

	 	 	
Location

	 	 	 	 	 	 	 	 	 	
 	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	
Greater Boston	 	92.4	%	92.8	%	82.1	%	95.3	%	87.5	%	94.0	%	 	 	 	
Greater Washington	 	99.5	%	99.6	%	93.4	%	97.0	%	95.1	%	98.1	%	 	 	 	
Midtown Manhattan	 	98.9	%	98.2	%	—	 	—	 	98.9	%	98.2	%	 	 	 	
Baltimore, MD	 	98.5	%	97.2	%	—	 	—	 	98.5	%	97.2	%	 	 	 	
Princeton/East Brunswick, NJ	 	—	 	—	 	95.0	%	93.0	%	95.0	%	93.0	%	 	 	 	
Richmond, VA	 	88.9	%	92.0	%	—	 	—	 	88.9	%	92.0	%	 	 	 	
Greater San Francisco	 	91.6	%	93.8	%	60.7	%	71.0	%	85.5	%	88.6	%	 	 	 	
Bucks County, PA	 	—	 	—	 	100.0	%	100.0	%	100.0	%	100.0	%	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
 	Total Portfolio	 	95.3	%	96.2	%	87.7	%	93.2	%	92.2	%	95.1	%	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	
30

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE GREATER BOSTON PROPERTIES

	
Lease Expirations—Greater Boston

	
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
 	2003	 	24,416	 	$	1,022,730	 	$	41.89	 	$	1,022,731	 	$	41.89	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
 	2004	 	359,728	 	 	12,537,257	 	 	34.85	 	 	12,568,411	 	 	34.94	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	2005	 	808,839	 	 	32,148,679	 	 	39.75	 	 	32,505,102	 	 	40.19	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	2006	 	526,783	 	 	18,583,562	 	 	35.28	 	 	18,683,040	 	 	35.47	 	253,704	 	 	3,631,745	 	 	14.31	 	 	3,631,745	 	 	14.31	
 	2007	 	464,403	 	 	17,829,480	 	 	38.39	 	 	19,124,694	 	 	41.18	 	144,140	 	 	1,940,579	 	 	13.46	 	 	2,233,859	 	 	15.50	
 	2008	 	472,742	 	 	15,036,715	 	 	31.81	 	 	16,041,522	 	 	33.93	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	2009	 	1,017,325	 	 	37,142,146	 	 	36.51	 	 	40,100,431	 	 	39.42	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	2010	 	197,403	 	 	6,814,517	 	 	34.52	 	 	7,629,593	 	 	38.65	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	2011	 	788,262	 	 	28,926,068	 	 	36.70	 	 	34,249,680	 	 	43.45	 	80,000	 	 	1,582,874	 	 	19.79	 	 	1,782,874	 	 	22.29	
 	2012	 	608,127	 	 	22,200,272	 	 	36.51	 	 	24,567,759	 	 	40.40	 	72,362	 	 	1,635,627	 	 	22.60	 	 	1,817,191	 	 	25.11	
Thereafter	 	882,608	 	 	36,104,692	 	 	40.91	 	 	42,246,129	 	 	47.87	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
 	2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	9,777	 	$	1,229,150	 	$	125.72	 	$	1,216,598	 	$	124.43	
 	2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	41,820	 	 	4,214,114	 	 	100.77	 	 	4,103,618	 	 	98.13	
 	2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	68,221	 	 	2,760,122	 	 	40.46	 	 	2,760,818	 	 	40.47	
 	2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	14,999	 	 	1,023,580	 	 	68.24	 	 	1,024,745	 	 	68.32	
 	2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	2,307	 	 	188,738	 	 	81.81	 	 	183,589	 	 	79.58	
 	2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	13,965	 	 	1,089,231	 	 	78.00	 	 	1,071,231	 	 	76.71	
 	2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	8,408	 	 	477,863	 	 	56.83	 	 	488,453	 	 	58.09	
 	2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	37,110	 	 	1,384,737	 	 	37.31	 	 	1,458,957	 	 	39.31	
 	2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	12,551	 	 	649,793	 	 	51.77	 	 	705,433	 	 	56.21	
 	2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	52,949	 	 	1,882,831	 	 	35.56	 	 	1,975,930	 	 	37.32	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	416,081	 	 	16,378,814	 	 	39.36	 	 	19,284,009	 	 	46.35	
31

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE GREATER BOSTON PROPERTIES

	
Quarterly Lease Expirations—Greater Boston

	
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized Revenues Under
Expiring Leases with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
 	Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
 	Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q4 2003	 	24,416	 	 	1,022,731	 	 	41.89	 	 	1,022,731	 	 	41.89	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	24,416	 	$	1,022,731	 	$	41.89	 	$	1,022,731	 	$	41.89	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 	Q1 2004	 	14,495	 	$	718,726	 	$	49.58	 	$	718,726	 	$	49.58	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
 	Q2 2004	 	85,089	 	 	2,814,542	 	 	33.08	 	 	2,814,542	 	 	33.08	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q3 2004	 	154,311	 	 	5,414,278	 	 	35.09	 	 	5,418,187	 	 	35.11	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q4 2004	 	105,833	 	 	3,589,711	 	 	33.92	 	 	3,616,956	 	 	34.18	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	359,728	 	$	12,537,257	 	$	34.85	 	$	12,568,411	 	$	34.94	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under Expiring Leases with future step-ups

	 	Per
Square
Foot

	
 	Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
 	Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 	Q4 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	9,777	 	 	1,229,150	 	 	125.72	 	 	1,216,598	 	 	124.43	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	—	 	 	—	 	$	—	 	$	—	 	$	—	 	 	9,777	 	$	1,229,150	 	$	125.72	 	$	1,216,598	 	$	124.43	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 	Q1 2004	 	—	 	$	—	 	$	—	 	 	—	 	$	—	 	 	21,339	 	$	1,748,559	 	$	81.94	 	$	1,693,059	 	$	79.34	
 	Q2 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	10,579	 	 	1,279,419	 	 	120.94	 	 	1,222,419	 	 	115.55	
 	Q3 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	3,347	 	 	526,920	 	 	157.43	 	 	502,920	 	 	150.26	
 	Q4 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	6,555	 	 	659,216	 	 	100.57	 	 	685,220	 	 	104.53	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	$	41,820	 	$	4,214,114	 	$	100.77	 	$	4,103,618	 	$	98.13	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
32

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE GREATER WASHINGTON PROPERTIES

	
Lease Expirations—Greater Washington

	
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	36,005	 	$	1,018,244	 	$	28.28	 	$	1,018,244	 	$	28.28	 	7,000	 	$	119,551	 	$	17.08	 	$	119,551	 	$	17.08	
2004	 	203,124	 	 	7,824,752	 	 	38.52	 	 	7,870,542	 	 	38.75	 	81,199	 	 	1,500,596	 	 	18.48	 	 	1,507,083	 	 	18.56	
2005	 	353,472	 	 	12,358,560	 	 	34.96	 	 	12,772,956	 	 	36.14	 	101,345	 	 	1,482,016	 	 	14.62	 	 	1,518,693	 	 	14.99	
2006	 	420,928	 	 	12,258,118	 	 	29.12	 	 	12,885,408	 	 	30.61	 	33,400	 	 	541,107	 	 	16.20	 	 	569,160	 	 	17.04	
2007	 	370,671	 	 	12,646,805	 	 	34.12	 	 	13,091,452	 	 	35.32	 	163,422	 	 	3,490,594	 	 	21.36	 	 	3,523,244	 	 	21.56	
2008	 	199,439	 	 	6,228,669	 	 	31.23	 	 	6,971,891	 	 	34.96	 	57,730	 	 	1,298,372	 	 	22.49	 	 	1,336,615	 	 	23.15	
2009	 	980,947	 	 	32,412,133	 	 	33.04	 	 	33,809,067	 	 	34.47	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	773,484	 	 	28,201,626	 	 	36.46	 	 	31,610,890	 	 	40.87	 	79,971	 	 	1,169,716	 	 	14.63	 	 	1,171,896	 	 	14.65	
2011	 	1,065,677	 	 	33,191,364	 	 	31.15	 	 	39,155,901	 	 	36.74	 	57,321	 	 	795,710	 	 	13.88	 	 	795,710	 	 	13.88	
2012	 	435,506	 	 	15,678,599	 	 	36.00	 	 	19,553,783	 	 	44.90	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	1,131,096	 	 	34,790,156	 	 	30.76	 	 	43,160,957	 	 	38.16	 	205,304	 	 	3,680,039	 	 	17.92	 	 	4,291,374	 	 	20.90	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	2,151	 	 	103,154	 	 	47.96	 	 	103,154	 	 	47.96	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	4,274	 	 	141,964	 	 	33.22	 	 	143,882	 	 	33.66	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	3,309	 	 	114,577	 	 	34.63	 	 	114,942	 	 	34.74	
2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	16,548	 	 	425,319	 	 	25.70	 	 	448,025	 	 	27.07	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	16,338	 	 	598,212	 	 	36.61	 	 	685,147	 	 	41.94	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	875	 	 	41,744	 	 	47.71	 	 	42,211	 	 	48.24	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	10,277	 	 	373,278	 	 	36.32	 	 	433,983	 	 	42.23	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	11,221	 	 	475,957	 	 	42.42	 	 	535,392	 	 	47.71	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	10,046	 	 	265,496	 	 	26.43	 	 	324,961	 	 	32.35	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	36,415	 	 	1,459,883	 	 	40.09	 	 	1,891,343	 	 	51.94	
33

Boston Properties, Inc.
Third Quarter 2003
IN-SERVICE GREATER WASHINGTON PROPERTIES

	
Quarterly Lease Expirations—Greater Washington

	
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	36,005	 	 	1,018,244	 	 	28.28	 	 	1,018,244	 	 	28.28	 	7,000	 	 	119,551	 	 	17.08	 	 	119,551	 	 	17.08	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	36,005	 	$	1,018,244	 	$	28.28	 	$	1,018,244	 	$	28.28	 	7,000	 	$	119,551	 	$	17.08	 	$	119,551	 	$	17.08	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	25,923	 	$	901,498	 	$	34.78	 	 	901,498	 	$	34.78	 	14,338	 	$	239,826	 	$	16.73	 	 	239,826	 	$	16.73	
Q2 2004	 	40,483	 	 	1,309,243	 	 	32.34	 	 	1,311,547	 	 	32.40	 	43,101	 	 	811,781	 	 	18.83	 	 	811,781	 	 	18.83	
Q3 2004	 	101,853	 	 	4,252,199	 	 	41.75	 	 	4,265,228	 	 	41.88	 	13,408	 	 	223,687	 	 	16.68	 	 	223,687	 	 	16.68	
Q4 2004	 	34,865	 	 	1,361,812	 	 	39.06	 	 	1,392,269	 	 	39.93	 	10,352	 	 	225,301	 	 	21.76	 	 	231,788	 	 	22.39	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	203,124	 	$	7,824,752	 	$	38.52	 	$	7,870,542	 	$	38.75	 	81,199	 	$	1,500,596	 	$	18.48	 	$	1,507,083	 	$	18.56	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	$	 	 	$	 	 	$	—	 	$	 	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	2,151	 	 	103,154	 	 	47.96	 	 	103,154	 	 	47.96	
Q3 2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	2,151	 	$	103,154	 	$	47.96	 	$	103,154	 	$	47.96	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
34

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
Lease Expirations—Greater San Francisco

	
 
	 	Office

	 	Office/Technical

	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	
2003	 	265,910	 	$	9,716,308	 	$	36.54	 	$	9,716,308	 	$	36.54	 	7,100	 	$	120,048	 	$	16.91	 	$	120,048	 	$	16.91	
2004	 	573,602	 	 	24,934,804	 	 	43.47	 	 	24,973,263	 	 	43.54	 	17,347	 	 	286,764	 	 	16.53	 	 	288,384	 	 	16.62	
2005	 	346,740	 	 	14,444,829	 	 	41.66	 	 	14,502,756	 	 	41.83	 	54,939	 	 	753,461	 	 	13.71	 	 	776,101	 	 	14.13	
2006	 	900,797	 	 	43,848,950	 	 	48.68	 	 	45,480,307	 	 	50.49	 	13,000	 	 	196,632	 	 	15.13	 	 	207,132	 	 	15.93	
2007	 	427,561	 	 	20,640,869	 	 	48.28	 	 	21,135,718	 	 	49.43	 	10,350	 	 	135,180	 	 	13.06	 	 	158,400	 	 	15.30	
2008	 	279,148	 	 	11,096,605	 	 	39.75	 	 	11,112,843	 	 	39.81	 	3,608	 	 	52,695	 	 	14.61	 	 	50,978	 	 	14.13	
2009	 	260,477	 	 	11,378,537	 	 	43.68	 	 	12,048,578	 	 	46.26	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	189,499	 	 	11,293,163	 	 	59.59	 	 	12,997,658	 	 	68.59	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	192,689	 	 	17,992,769	 	 	93.38	 	 	18,485,363	 	 	95.93	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	127,771	 	 	5,464,124	 	 	42.76	 	 	5,978,786	 	 	46.79	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	214,823	 	 	8,355,682	 	 	38.90	 	 	9,015,540	 	 	41.97	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	Industrial

	 	Retail

	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	20,363	 	$	714,163	 	$	35.07	 	$	731,233	 	$	35.91	
2004	 	40,000	 	 	424,836	 	 	10.62	 	 	434,436	 	 	10.86	 	25,296	 	 	1,294,816	 	 	51.19	 	 	1,294,816	 	 	51.19	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	27,297	 	 	1,337,997	 	 	49.02	 	 	1,359,013	 	 	49.79	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	21,606	 	 	1,062,027	 	 	49.15	 	 	1,068,446	 	 	49.45	
2007	 	20,000	 	 	241,890	 	 	12.09	 	 	260,859	 	 	13.04	 	18,341	 	 	1,146,998	 	 	62.54	 	 	1,234,003	 	 	67.28	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	43,899	 	 	1,999,873	 	 	45.56	 	 	2,062,957	 	 	46.99	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	31,088	 	 	1,363,155	 	 	43.85	 	 	1,431,281	 	 	46.04	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	30,749	 	 	1,306,176	 	 	42.48	 	 	1,520,176	 	 	49.44	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	3,474	 	 	192,311	 	 	55.36	 	 	234,550	 	 	67.52	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	35,018	 	 	2,165,851	 	 	61.85	 	 	2,458,101	 	 	70.20	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	12,417	 	 	892,256	 	 	71.86	 	 	997,893	 	 	80.37	
35

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
Quarterly Lease Expirations—Greater San Francisco

	
 
	 	Office

	 	Office/Technical

	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	
Q1 2003	 	—	 	$	 	 	$	 	 	$	 	 	$	 	 	—	 	$	 	 	$	 	 	$	 	 	$	 	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	265,910	 	 	9,716,308	 	 	36.54	 	 	9,716,308	 	 	36.54	 	7,100	 	 	120,048	 	 	16.91	 	 	120,048	 	 	16.91	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	265,910	 	$	9,716,308	 	$	36.54	 	$	9,716,308	 	$	36.54	 	7,100	 	$	120,048	 	$	16.91	 	$	120,048	 	$	16.91	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	35,049	 	 	1,871,822	 	$	53.41	 	 	1,885,947	 	$	53.81	 	—	 	$	—	 	$	—	 	 	—	 	$	—	
Q2 2004	 	148,543	 	 	5,458,941	 	 	36.75	 	 	5,458,941	 	 	36.75	 	6,800	 	 	94,440	 	 	13.89	 	 	94,440	 	 	13.89	
Q3 2004	 	235,794	 	 	10,970,400	 	 	46.53	 	 	10,971,531	 	 	46.53	 	6,547	 	 	135,576	 	 	20.71	 	 	135,576	 	 	20.71	
Q4 2004	 	154,216	 	 	6,633,641	 	 	43.02	 	 	6,656,844	 	 	43.17	 	4,000	 	 	56,748	 	 	14.19	 	 	58,368	 	 	14.59	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	573,602	 	$	24,934,804	 	$	43.47	 	$	24,973,263	 	$	43.54	 	17,347	 	$	286,764	 	$	16.53	 	$	288,384	 	$	16.62	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	Industrial

	 	Retail

	
Year of Lease Expiration

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	 	Rentable Square Footage Subject to Expiring Leases

	 	Current Annualized Revenues Under Expiring Leases

	 	Per Square Foot

	 	Annualized Revenues Under Expiring Leases with future step-ups

	 	Per Square Foot

	
Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	20,363	 	 	714,163	 	 	35.07	 	 	731,233	 	 	35.91	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	20,363	 	$	714,163	 	$	35.07	 	$	731,233	 	$	35.91	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	—	 	 	—	 	$	—	 	 	—	 	$	—	 	13,096	 	$	629,169	 	$	48.04	 	 	629,169	 	$	48.04	
Q2 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	256	 	 	33,231	 	 	129.81	 	 	33,231	 	 	129.81	
Q3 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	4,239	 	 	206,577	 	 	48.73	 	 	206,577	 	 	48.73	
Q4 2004	 	40,000	 	 	424,836	 	 	10.62	 	 	434,436	 	 	10.86	 	7,705	 	 	425,839	 	 	55.27	 	 	425,839	 	 	55.27	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	40,000	 	$	424,836	 	$	10.62	 	$	434,436	 	$	10.86	 	25,296	 	$	1,294,816	 	$	51.19	 	$	1,294,816	 	$	51.19	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
36

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Lease Expirations—Midtown Manhattan
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	3,173	 	$	172,038	 	$	54.22	 	$	172,038	 	$	54.22	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
2004	 	270,619	 	 	16,502,102	 	 	60.98	 	 	16,517,126	 	 	61.03	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2005	 	103,076	 	 	7,151,148	 	 	69.38	 	 	7,190,072	 	 	69.76	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2006	 	343,438	 	 	23,302,477	 	 	67.85	 	 	23,575,649	 	 	68.65	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2007	 	170,306	 	 	10,369,510	 	 	60.89	 	 	10,476,376	 	 	61.52	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2008	 	488,118	 	 	29,729,142	 	 	60.91	 	 	30,416,850	 	 	62.31	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2009	 	291,535	 	 	17,454,402	 	 	59.87	 	 	19,450,436	 	 	66.72	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	287,774	 	 	19,344,027	 	 	67.22	 	 	20,410,804	 	 	70.93	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	363,724	 	 	21,211,117	 	 	58.32	 	 	24,535,846	 	 	67.46	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	891,075	 	 	52,712,451	 	 	59.16	 	 	53,767,672	 	 	60.34	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	3,054,646	 	 	182,832,474	 	 	59.85	 	 	220,556,811	 	 	72.20	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	800	 	$	256,507	 	$	320.63	 	$	256,507	 	$	320.63	
2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	1,650	 	 	187,524	 	 	113.65	 	 	187,524	 	 	113.65	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	1,514	 	 	285,156	 	 	188.35	 	 	296,463	 	 	195.81	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	15,225	 	 	668,437	 	 	43.90	 	 	683,058	 	 	44.86	
2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	826	 	 	184,859	 	 	223.80	 	 	201,091	 	 	243.45	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	3,232	 	 	161,884	 	 	50.09	 	 	169,126	 	 	52.33	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	5,030	 	 	336,496	 	 	66.90	 	 	413,996	 	 	82.31	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	14,995	 	 	1,324,173	 	 	88.31	 	 	1,584,025	 	 	105.64	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	5,639	 	 	621,841	 	 	110.28	 	 	818,811	 	 	145.20	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	152,056	 	 	13,304,994	 	 	87.50	 	 	17,394,565	 	 	114.40	
37

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE MIDTOWN MANHATTAN PROPERTIES

Quarterly Lease Expirations—Midtown Manhattan
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenue Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	3,173	 	 	172,038	 	 	54.22	 	 	172,038	 	 	54.22	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	3,173	 	$	172,038	 	$	54.22	 	$	172,038	 	$	54.22	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	107,924	 	$	6,751,363	 	$	62.56	 	$	6,751,363	 	$	62.56	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	51,445	 	 	4,098,320	 	 	79.66	 	 	4,098,320	 	 	79.66	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	111,250	 	 	5,652,419	 	 	50.81	 	 	5,667,443	 	 	50.94	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	270,619	 	$	16,502,102	 	$	60.98	 	$	16,517,126	 	$	61.03	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenue Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	 	 	$	 	 	$	—	 	$	 	 	$	—	 	 	 	$	 	 	$	 	 	 	 	 	 	 	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Q4 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	800	 	 	256,507	 	 	320.63	 	 	256,507	 	 	320.63	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	800	 	$	256,507	 	$	320.63	 	$	256,507	 	$	320.63	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	350	 	 	50,655	 	 	144.73	 	 	50,655	 	 	144.73	
Q3 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	1,300	 	 	136,869	 	 	105.28	 	 	136,869	 	 	105.28	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	1,650	 	$	187,524	 	$	113.65	 	$	187,524	 	$	113.65	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
38

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES

Lease Expirations — Princeton/East Brunswick
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	80,586	 	$	2,243,192	 	$	27.84	 	$	2,243,192	 	$	27.84	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
2004	 	377,822	 	 	11,490,192	 	 	30.41	 	 	11,490,192	 	 	30.41	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2005	 	228,388	 	 	7,228,354	 	 	31.65	 	 	7,245,104	 	 	31.72	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2006	 	92,041	 	 	3,102,246	 	 	33.71	 	 	3,233,362	 	 	35.13	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2007	 	513,240	 	 	14,888,862	 	 	29.01	 	 	15,923,580	 	 	31.03	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2009	 	177,428	 	 	5,803,810	 	 	32.71	 	 	6,478,870	 	 	36.52	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	154,917	 	 	5,106,368	 	 	32.96	 	 	5,603,900	 	 	36.17	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	258,039	 	 	7,925,105	 	 	30.71	 	 	8,720,857	 	 	33.80	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	319,668	 	 	9,448,193	 	 	29.56	 	 	10,580,541	 	 	33.10	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	$	 	 	$	 	 	$	—	 	$	 	 	$	—	 	$	 	 	$	 	 	$	 	 	 	 	 	
2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	2,904	 	 	48,000	 	 	16.53	 	48,000	 	16.53	
2005	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2006	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2007	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2008	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2009	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2010	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2011	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
2012	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
Thereafter	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	—	
39

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
Quarterly Lease Expirations — Princeton/East Brunswick
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	80,586	 	 	2,243,192	 	 	27.84	 	 	2,243,192	 	 	27.84	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	80,586	 	$	2,243,192	 	$	27.84	 	$	2,243,192	 	$	27.84	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	3,022	 	$	110,910	 	$	36.70	 	$	110,910	 	$	36.70	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	54,636	 	 	1,536,832	 	 	28.13	 	 	1,536,832	 	 	28.13	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2004	 	121,054	 	 	3,715,691	 	 	30.69	 	 	3,715,691	 	 	30.69	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	199,110	 	 	6,126,759	 	 	30.77	 	 	6,126,759	 	 	30.77	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	377,822	 	$	11,490,192	 	$	30.41	 	$	11,490,192	 	$	30.41	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	2,904	 	$	48,000	 	$	16.53	 	$	48,000	 	$	16.53	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	2,904	 	$	48,000	 	$	16.53	 	$	48,000	 	$	16.53	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
40

Boston Properties, Inc.
Third Quarter 2003

IN-SERVICE OTHER PROPERTIES
Lease Expirations
Other Properties (Richmond, VA; Baltimore, MD; Bucks County, PA)
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	50,006	 	$	1,438,815	 	$	28.77	 	$	1,438,815	 	$	28.77	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
2004	 	78,408	 	 	1,849,459	 	 	23.59	 	 	1,850,267	 	 	23.60	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2005	 	430,591	 	 	11,038,029	 	 	25.63	 	 	11,514,099	 	 	26.74	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2006	 	626,495	 	 	19,073,993	 	 	30.45	 	 	19,557,513	 	 	31.22	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2007	 	89,093	 	 	2,876,476	 	 	32.29	 	 	2,923,262	 	 	32.81	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2008	 	8,647	 	 	222,693	 	 	25.75	 	 	247,607	 	 	28.64	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2009	 	31,164	 	 	767,015	 	 	24.61	 	 	867,509	 	 	27.84	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	28,840	 	 	634,548	 	 	22.00	 	 	714,172	 	 	24.76	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	4,618	 	 	124,098	 	 	26.87	 	 	139,614	 	 	30.23	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	30,566	 	 	955,188	 	 	31.25	 	 	1,219,278	 	 	39.89	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	—	 	$	8,721	 	$	—	 	$	8,721	 	$	—	
2004	 	161,000	 	 	774,422	 	 	4.81	 	 	774,422	 	 	4.81	 	2,183	 	 	72,623	 	 	33.27	 	 	72,623	 	 	33.27	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	5,296	 	 	261,738	 	 	49.42	 	 	268,765	 	 	50.75	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	3,336	 	 	162,382	 	 	48.68	 	 	162,382	 	 	48.68	
2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	6,700	 	 	262,854	 	 	39.23	 	 	262,854	 	 	39.23	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	3,561	 	 	78,410	 	 	22.02	 	 	90,705	 	 	25.47	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	14,578	 	 	287,054	 	 	19.69	 	 	391,422	 	 	26.85	
41

IN-SERVICE OTHER PROPERTIES
Quarterly Lease Expirations
Other Properties (Richmond, VA; Baltimore, MD; Bucks County, PA)
 
	 	OFFICE

	 	OFFICE/TECHNICAL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	$	 	 	 	 	 	 	 	
Q2 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	 	50,006	 	 	1,438,815	 	 	28.77	 	 	1,438,815	 	 	28.77	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	 	50,006	 	$	1,438,815	 	$	28.77	 	$	1,438,815	 	$	28.77	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
Q2 2004	 	 	9,483	 	 	305,627	 	 	32.23	 	 	305,627	 	 	32.23	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2004	 	 	66,935	 	 	1,480,564	 	 	22.12	 	 	1,479,528	 	 	22.10	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	 	1,990	 	 	63,268	 	 	31.79	 	 	65,113	 	 	32.72	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	 	78,408	 	$	1,849,459	 	$	23.59	 	$	1,850,267	 	$	23.60	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
 
	 	INDUSTRIAL

	 	RETAIL

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring Leases

	 	Current Annualized
Revenues Under
Expiring Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring Leases
with future step-ups

	 	Per
Square
Foot

	
Q1 2003	 	$	 	 	$	 	 	$	—	 	$	 	 	$	—	 	$	 	 	$	 	 	$	 	 	 	 	 	 	 	
Q2 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2003	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	8,721	 	 	—	 	 	8,721	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2003	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	 	—	 	$	8,721	 	$	—	 	$	8,721	 	$	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Q1 2004	 	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	 	2,183	 	$	72,623	 	$	33.27	 	$	72,623	 	$	33.27	
Q2 2004	 	 	161,000	 	 	774,422	 	 	4.81	 	 	774,422	 	 	4.81	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q3 2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Q4 2004	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	 	—	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
Total 2004	 	 	161,000	 	$	774,422	 	$	4.81	 	$	774,422	 	$	4.81	 	 	2,183	 	$	72,623	 	$	33.27	 	$	72,623	 	$	33.27	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	
42

Boston Properties, Inc.
Third Quarter 2003

CBD PROPERTIES

Lease Expirations
 
	 	Greater Boston

	 	Greater Washington

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003 (1)	 	23,214	 	$	1,978,712	 	$	85.24	 	$	1,966,160	 	$	84.70	 	2,885	 	$	105,863	 	$	36.69	 	$	105,863	 	$	36.69	
2004 (2)	 	116,282	 	 	7,709,730	 	 	66.30	 	 	7,621,437	 	 	65.54	 	153,431	 	 	6,445,412	 	 	42.01	 	 	6,487,857	 	 	42.29	
2005	 	513,589	 	 	23,768,266	 	 	46.28	 	 	24,042,987	 	 	46.81	 	95,801	 	 	3,627,838	 	 	37.87	 	 	3,700,637	 	 	38.63	
2006	 	146,969	 	 	7,039,265	 	 	47.90	 	 	7,117,542	 	 	48.43	 	42,208	 	 	1,596,549	 	 	37.83	 	 	1,695,773	 	 	40.18	
2007	 	153,937	 	 	8,257,485	 	 	53.64	 	 	8,500,773	 	 	55.22	 	275,177	 	 	9,340,538	 	 	33.94	 	 	9,486,357	 	 	34.47	
2008	 	176,705	 	 	7,208,085	 	 	40.79	 	 	7,230,597	 	 	40.92	 	33,613	 	 	1,251,375	 	 	37.23	 	 	1,418,638	 	 	42.21	
2009	 	727,068	 	 	26,510,166	 	 	36.46	 	 	29,013,183	 	 	39.90	 	441,580	 	 	15,709,499	 	 	35.58	 	 	17,088,133	 	 	38.70	
2010	 	150,555	 	 	6,275,624	 	 	41.68	 	 	7,021,609	 	 	46.64	 	213,929	 	 	7,732,575	 	 	36.15	 	 	9,137,485	 	 	42.71	
2011	 	435,943	 	 	21,896,997	 	 	50.23	 	 	26,114,940	 	 	59.90	 	106,022	 	 	3,489,548	 	 	32.91	 	 	4,294,606	 	 	40.51	
2012	 	309,025	 	 	13,972,204	 	 	45.21	 	 	14,907,822	 	 	48.24	 	77,318	 	 	2,876,971	 	 	37.21	 	 	2,952,986	 	 	38.19	
Thereafter	 	1,101,614	 	 	45,379,117	 	 	41.19	 	 	52,915,984	 	 	48.03	 	169,053	 	 	7,209,689	 	 	42.65	 	 	8,448,051	 	 	49.97	
 
	 	New York

	 	San Francisco

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003	 	3,973	 	$	428,545	 	$	107.86	 	$	428,545	 	$	107.86	 	109,899	 	$	4,424,209	 	$	40.26	 	$	4,441,279	 	$	40.41	
2004	 	272,269	 	 	16,689,625	 	 	61.30	 	 	16,704,649	 	 	61.35	 	544,878	 	 	24,180,023	 	 	44.38	 	 	24,195,280	 	 	44.40	
2005	 	104,590	 	 	7,436,304	 	 	71.10	 	 	7,486,536	 	 	71.58	 	323,458	 	 	14,158,550	 	 	43.77	 	 	14,198,100	 	 	43.89	
2006	 	358,663	 	 	23,970,914	 	 	66.83	 	 	24,258,708	 	 	67.64	 	878,417	 	 	42,470,499	 	 	48.35	 	 	43,870,300	 	 	49.94	
2007	 	171,132	 	 	10,554,369	 	 	61.67	 	 	10,677,467	 	 	62.39	 	432,627	 	 	21,278,765	 	 	49.19	 	 	21,846,654	 	 	50.50	
2008	 	491,350	 	 	29,891,026	 	 	60.83	 	 	30,585,976	 	 	62.25	 	258,236	 	 	11,174,626	 	 	43.27	 	 	11,398,483	 	 	44.14	
2009	 	291,535	 	 	17,454,402	 	 	59.87	 	 	19,450,436	 	 	66.72	 	286,309	 	 	12,556,649	 	 	43.86	 	 	13,265,172	 	 	46.33	
2010	 	292,804	 	 	19,680,523	 	 	67.21	 	 	20,824,800	 	 	71.12	 	212,524	 	 	12,431,339	 	 	58.49	 	 	14,286,113	 	 	67.22	
2011	 	378,719	 	 	22,535,290	 	 	59.50	 	 	26,119,872	 	 	68.97	 	196,163	 	 	18,185,080	 	 	92.70	 	 	18,719,913	 	 	95.43	
2012	 	896,714	 	 	53,334,292	 	 	59.48	 	 	54,586,483	 	 	60.87	 	162,789	 	 	7,629,975	 	 	46.87	 	 	8,436,887	 	 	51.83	
Thereafter	 	3,206,702	 	 	196,137,469	 	 	61.16	 	 	237,951,376	 	 	74.20	 	227,240	 	 	9,247,939	 	 	40.70	 	 	10,013,432	 	 	44.07	
 
	 	Princeton/East Brunswick

	 	Other

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	50,006	 	$	1,447,536	 	$	28.95	 	$	1,447,536	 	$	28.95	
2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	80,591	 	 	1,922,082	 	 	23.85	 	 	1,922,890	 	 	23.86	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	435,887	 	 	11,299,767	 	 	25.92	 	 	11,782,865	 	 	27.03	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	629,831	 	 	19,236,374	 	 	30.54	 	 	19,719,895	 	 	31.31	
2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	95,793	 	 	3,139,331	 	 	32.77	 	 	3,186,116	 	 	33.26	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	12,208	 	 	301,103	 	 	24.66	 	 	338,312	 	 	27.71	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	31,164	 	 	767,015	 	 	24.61	 	 	867,509	 	 	27.84	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	28,840	 	 	634,548	 	 	22.00	 	 	714,172	 	 	24.76	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	4,618	 	 	124,098	 	 	26.87	 	 	139,614	 	 	30.23	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	30,566	 	 	955,188	 	 	31.25	 	 	1,219,278	 	 	39.89	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	14,578	 	 	287,054	 	 	19.69	 	 	391,422	 	 	26.85	
(1)
Includes 9,777 square feet of retail space and kiosks at an average current rent on expiring leases of $125.72 per square foot and an average rent on expiring leases with future step-ups of $124.43 per square foot.

(2)
Includes 40,620 square feet of retail space and kiosks at an average current rent on expiring leases of $102.56 per square foot and an average rent on expiring leases with future step-ups of $99.84 per square foot.

43

Boston Properties, Inc.
Third Quarter 2003

SUBURBAN PROPERTIES

Lease Expirations
 
	 	Greater Boston

	 	Greater Washington

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003	 	10,979	 	$	273,168	 	$	24.88	 	$	273,168	 	$	24.88	 	40,120	 	$	1,031,933	 	$	25.72	 	$	1,031,933	 	$	25.72	
2004	 	285,266	 	 	9,041,641	 	 	31.70	 	 	9,050,592	 	 	31.73	 	133,043	 	 	2,983,090	 	 	22.42	 	 	2,992,922	 	 	22.50	
2005	 	363,471	 	 	11,140,535	 	 	30.65	 	 	11,222,932	 	 	30.88	 	363,290	 	 	10,354,702	 	 	28.50	 	 	10,734,894	 	 	29.55	
2006	 	648,517	 	 	16,199,623	 	 	24.98	 	 	16,221,989	 	 	25.01	 	415,429	 	 	11,317,253	 	 	27.24	 	 	11,873,736	 	 	28.58	
2007	 	456,913	 	 	11,701,313	 	 	25.61	 	 	13,041,369	 	 	28.54	 	275,464	 	 	7,222,181	 	 	26.22	 	 	7,576,365	 	 	27.50	
2008	 	310,002	 	 	8,917,861	 	 	28.77	 	 	9,882,156	 	 	31.88	 	239,894	 	 	6,873,877	 	 	28.65	 	 	7,575,015	 	 	31.58	
2009	 	298,665	 	 	11,109,843	 	 	37.20	 	 	11,575,701	 	 	38.76	 	540,242	 	 	16,744,378	 	 	30.99	 	 	16,763,145	 	 	31.03	
2010	 	83,958	 	 	1,923,629	 	 	22.91	 	 	2,066,940	 	 	24.62	 	649,803	 	 	22,012,046	 	 	33.87	 	 	24,079,283	 	 	37.06	
2011	 	444,870	 	 	9,261,738	 	 	20.82	 	 	10,623,047	 	 	23.88	 	1,028,197	 	 	30,973,482	 	 	30.12	 	 	36,192,395	 	 	35.20	
2012	 	424,413	 	 	11,746,526	 	 	27.68	 	 	13,453,057	 	 	31.70	 	368,234	 	 	13,067,124	 	 	35.49	 	 	16,925,759	 	 	45.96	
Thereafter	 	197,075	 	 	7,104,389	 	 	36.05	 	 	8,614,154	 	 	43.71	 	1,203,762	 	 	32,720,389	 	 	27.18	 	 	40,895,623	 	 	33.97	
 
	 	New York

	 	San Francisco

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003	 	—	 	$	—	 	$	—	 	$	—	 	$	—	 	183,474	 	$	6,126,310	 	$	33.39	 	$	6,126,310	 	$	33.39	
2004	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	111,367	 	 	2,761,196	 	 	24.79	 	 	2,795,620	 	 	25.10	
2005	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	105,518	 	 	2,377,737	 	 	22.53	 	 	2,439,770	 	 	23.12	
2006	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	56,986	 	 	2,637,111	 	 	46.28	 	 	2,885,585	 	 	50.64	
2007	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	43,625	 	 	886,172	 	 	20.31	 	 	942,326	 	 	21.60	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	68,419	 	 	1,974,547	 	 	28.86	 	 	1,828,295	 	 	26.72	
2009	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	5,256	 	 	185,043	 	 	35.21	 	 	214,687	 	 	40.85	
2010	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	7,724	 	 	168,000	 	 	21.75	 	 	231,720	 	 	30.00	
2011	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
 
	 	Princeton/East Brunswick

	 	Other

	
Year of Lease
Expiration

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	 	Rentable Square
Footage Subject to
Expiring
Leases

	 	Current Annualized
Revenues Under
Expiring
Leases

	 	Per
Square
Foot

	 	Annualized
Revenues Under
Expiring
Leases
with future
step-ups

	 	Per
Square
Foot

	
2003	 	80,586	 	$	2,243,192	 	$	27.84	 	$	2,243,192	 	$	27.84	 	—	 	$	—	 	$	—	 	$	—	 	$	—	
2004	 	380,726	 	 	11,538,192	 	 	30.31	 	 	11,538,192	 	 	30.31	 	161,000	 	 	774,422	 	 	4.81	 	 	774,422	 	 	4.81	
2005	 	228,388	 	 	7,228,354	 	 	31.65	 	 	7,245,104	 	 	31.72	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2006	 	92,041	 	 	3,102,246	 	 	33.71	 	 	3,233,362	 	 	35.13	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2007	 	513,240	 	 	14,888,862	 	 	29.01	 	 	15,923,580	 	 	31.03	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2008	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2009	 	177,428	 	 	5,803,810	 	 	32.71	 	 	6,478,870	 	 	36.52	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2010	 	154,917	 	 	5,106,368	 	 	32.96	 	 	5,603,900	 	 	36.17	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2011	 	258,039	 	 	7,925,105	 	 	30.71	 	 	8,720,857	 	 	33.80	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
2012	 	—	 	 	—	 	 	—	 	 	—	 	 	—	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
Thereafter	 	319,668	 	 	9,448,193	 	 	29.56	 	 	10,580,541	 	 	33.10	 	—	 	 	—	 	 	—	 	 	—	 	 	—	
44

Boston Properties, Inc.
Third Quarter 2003

HOTEL PERFORMANCE
Long Wharf Marriott—Boston
 
	 	Third Quarter
2003

	 	Third Quarter
2002

	 	Percent
Change

	 	YTD
2003

	 	YTD
2002

	 	Percent
Change

	 	
Occupancy	 	 	90.7	%	 	88.9	%	2.0	%	 	81.4	%	 	84.4	%	-3.6	%	
Average Daily Rate	 	$	212.53	 	$	232.27	 	-8.5	%	$	195.05	 	$	211.03	 	-7.6	%	
Revenue per available room	 	$	192.69	 	$	206.57	 	-6.7	%	$	158.84	 	$	178.13	 	-10.8	%	
Hotel Revenues Less Hotel Operating Expenses (in thousands)	 	$	2,608	 	$	3,446	 	-24.3	%	$	6,005	 	$	7,403	 	-18.9	%	

Cambridge Center Marriott
 
	 	Third Quarter
2003

	 	Third Quarter
2002

	 	Percent
Change

	 	YTD
2003

	 	YTD
2002

	 	Percent
Change

	 	
Occupancy	 	 	81.1	%	 	86.0	%	-5.7	%	 	74.3	%	 	77.6	%	-4.3	%	
Average Daily Rate	 	$	140.82	 	$	164.24	 	-14.3	%	$	151.62	 	$	170.68	 	-11.2	%	
Revenue per available room	 	$	114.16	 	$	141.30	 	-19.2	%	$	112.64	 	$	132.37	 	-14.9	%	
Hotel Revenues Less Hotel Operating Expenses (in thousands)	 	$	1,156	 	$	1,792	 	-35.5	%	$	3,613	 	$	5,388	 	-32.9	%	

Residence Inn by Marriott
 
	 	Third Quarter
2003

	 	Third Quarter
2002

	 	Percent
Change

	 	YTD
2003

	 	YTD
2002

	 	Percent
Change

	 	
Occupancy	 	 	91.3	%	 	90.8	%	0.6	%	 	80.3	%	 	86.2	%	-6.8	%	
Average Daily Rate	 	$	129.20	 	$	148.20	 	-12.8	%	$	125.20	 	$	138.16	 	-9.4	%	
Revenue per available room	 	$	117.96	 	$	134.52	 	-12.3	%	$	100.59	 	$	119.13	 	-15.6	%	
Hotel Revenues Less Hotel Operating Expenses (in thousands)	 	$	949	 	$	1,245	 	-23.8	%	$	2,125	 	$	2,850	 	-25.4	%	

Total Hotel Performance
 
	 	Third Quarter
2003

	 	Third Quarter
2002

	 	Percent
Change

	 	YTD
2003

	 	YTD
2002

	 	Percent
Change

	 	
Occupancy	 	 	86.9	%	 	88.1	%	-1.4	%	 	78.3	%	 	82.0	%	-4.5	%	
Average Daily Rate	 	$	165.73	 	$	186.82	 	-11.3	%	$	162.64	 	$	179.25	 	-9.3	%	
Revenue per available room	 	$	144.91	 	$	164.77	 	-12.1	%	$	127.73	 	$	147.05	 	-13.1	%	
Hotel Revenues Less Hotel Operating Expenses (in thousands)	 	$	4,713	 	$	6,483	 	-27.3	%	$	11,743	 	$	15,641	 	-24.9	%	
45

Boston Properties, Inc.
Third Quarter 2003

SAME PROPERTY PERFORMANCE
 
	 	Office

	 	Office/Technical

	 	Industrial

	 	Hotel (3)

	 	Total

	 	
Number of Properties	 	94	 	26	 	4	 	3	 	127	 	
Square feet	 	25,925,149	 	1,501,211	 	390,273	 	937,874	 	28,754,507	 	
Percent of in-service properties	 	88.9	%	90.4	%	100.0	%	100.0	%	89.4	%	
Occupancy @ 9/30/02	 	94.4	%	95.0	%	100.0	%	—	 	94.5	%	
Occupancy @ 9/30/03	 	92.8	%	88.5	%	56.6	%	—	 	92.0	%	
Percent change from 3rd quarter 2003	 	 	 	 	 	 	 	 	 	 	 	
 	over 3rd quarter 2002 (1):	 	 	 	 	 	 	 	 	 	 	 	
 	Rental revenue	 	0.8	%	-0.1	%	-34.3	%	-12.3	%	-0.2	%	
 	Operating expenses and real estate taxes	 	4.7	%	23.9	%	6.1	%	-5.1	%	3.6	%	
 	Rental revenue less operating expenses and real estate taxes	 	-1.2	%	-6.1	%	-43.1	%	-27.4	%	-2.3	%	
 	Rental revenue less operating expenses and real estate taxes—without hotels	 	 	 	 	 	 	 	 	 	-1.4	%	
 	Rental revenue—cash basis	 	1.5	%	1.0	%	-34.1	%	-12.3	%	0.4	%	
 	Rental revenue less operating expenses and real estate taxes—cash basis	 	-0.2	%	-4.9	%	-42.7	%	-27.4	%	-1.5	%	
 	Rental revenue less operating expenses and real estate taxes—cash basis—without hotels	 	 	 	 	 	 	 	 	 	-0.5	%	

Same Property Lease Analysis—quarter ended September 30, 2003
 
	 	Office

	 	Office/Technical

	 	Industrial

	 	Total

	 	
Vacant space available @ 7/01/03 (sf)	 	 	1,792,900	 	 	152,738	 	 	41,168	 	 	1,986,806	 	
Square footage of leases expiring or terminated 07/01/03-09/30/03	 	 	915,057	 	 	65,136	 	 	128,105	 	 	1,108,298	 	

	 	

	 	

	 	

	 	
Total space for lease (sf)	 	 	2,707,957	 	 	217,874	 	 	169,273	 	 	3,095,104	 	

	 	

	 	

	 	

	 	
New tenants (sf)	 	 	171,014	 	 	26,811	 	 	—	 	 	197,825	 	
Renewals (sf)	 	 	661,296	 	 	18,455	 	 	—	 	 	679,751	 	

	 	

	 	

	 	

	 	
Total space leased (sf)	 	 	832,310	 	 	45,266	 	 	—	 	 	877,576	 	

	 	

	 	

	 	

	 	
Space available @ 9/30/03 (sf)	 	 	1,875,647	 	 	172,608	 	 	169,273	 	 	2,217,528	 	

	 	

	 	

	 	

	 	
Net (increase)/decrease in available space (sf)	 	 	(82,747	)	 	(19,870	)	 	(128,105	)	 	(230,722	)	
Average lease term (months)	 	 	73	 	 	33	 	 	—	 	 	71	 	
2nd generation TI/Comm PSF	 	$	6.43	 	$	8.20	 	$	—	 	$	6.52	 	
Increase (decrease) in 2nd generation net rents (2)	 	 	-14.1	%	 	-1.7	%	 	0	%	 	-13.6	%	

(1)
See page 47 for a quantitative reconciliation.

(2)
Represents increase in net rents on a "cash to cash" basis. (Actual net rent at time of expiration vs. initial net rent of new lease.)

(3)
Includes revenue and expenses from retail tenants at the hotel properties.

46

Boston Properties, Inc.
Third Quarter 2003

Reconciliation to Same Property Performance
(in thousands)
 
	 	Office

	 	Office/Technical

	 	Industrial

	 	 	
 
	 	For the three months ended

	 	 
	 	 
	 	For the three months ended

	 	 
	 	 
	 	For the three months ended

	 	 

 
	 	 	 	$
Change

	 	%
Change

	 	 	 	$
Change

	 	%
Change

	 	 	 	$
Change

	 	%
Change

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental Revenue	 	$	258,906	 	$	256,435	 	 	 	 	 	 	$	5,675	 	$	5,681	 	 	 	 	 	 	 	$	415	 	$	631	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less Termination Income	 	 	1,735	 	 	1,382	 	 	 	 	 	 	 	—	 	 	—	 	 	 	 	 	 	 	 	—	 	 	—	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—subtotal	 	 	257,171	 	 	255,053	 	 	2,118	 	0.8	%	 	5,675	 	 	5,681	 	 	(6	)	 	-0.1	%	 	415	 	 	631	 	 	(216	)	-34.2	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses and real estate taxes	 	 	89,905	 	 	85,836	 	 	4,069	 	4.7	%	 	1,398	 	 	1,128	 	 	270	 	 	23.9	%	 	121	 	 	114	 	 	7	 	6.1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue less operating expenses and real estate taxes	 	$	167,266	 	$	169,217	 	$	(1,951	)	-1.2	%	$	4,277	 	$	4,553	 	$	(276	)	 	-6.1	%	$	294	 	$	517	 	$	(223	)	-43.1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—subtotal	 	$	257,171	 	$	255,053	 	 	 	 	 	 	$	5,675	 	$	5,681	 	 	 	 	$	 	 	$	415	 	$	631	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less Straight Line Rent	 	 	8,264	 	 	9,905	 	 	(1,641	)	 	 	 	93	 	 	153	 	 	(60	)	 	 	 	 	(12	)	 	(17	)	 	5	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—cash basis	 	 	248,907	 	 	245,148	 	 	3,759	 	1.5	%	 	5,582	 	 	5,528	 	 	54	 	 	1.0	%	 	427	 	 	648	 	 	(221	)	-34.1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses and real estate taxes	 	 	89,905	 	 	85,836	 	 	4,069	 	4.7	%	 	1,398	 	 	1,128	 	 	270	 	 	23.9	%	 	121	 	 	114	 	 	7	 	6.1	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue less operating expenses and real estate taxes—cash basis	 	$	159,002	 	$	159,312	 	$	(310	)	-0.2	%	$	4,184	 	$	4,400	 	$	(216	)	 	-4.9	%	$	306	 	$	534	 	$	(228	)	-42.7	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 
	 	Hotel

	 	Total

	 	 

	 	 

	 	For the three months ended

	 	 
	 	 
	 	For the three months ended

	 	 

	 	 

	 	
 
	 	 	 	$
Change

	 	%
Change

	 	 	 	$
Change

	 	%
Change

	 	 

	 	 

	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	 	30-Sep-03

	 	30-Sep-02

	 	 	 	 	 	 

	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental Revenue	 	$	17,527	 	$	19,993	 	 	 	 	 	 	$	282,523	 	$	282,740	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less Termination Income	 	 	—	 	 	—	 	 	 	 	 	 	 	1,735	 	 	1,382	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—subtotal	 	 	17,527	 	 	19,993	 	$	(2,466	)	-12.3	%	 	280,788	 	 	281,358	 	 	(570	)	-0.2	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses and real estate taxes	 	 	12,829	 	 	13,524	 	 	(695	)	-5.1	%	 	104,253	 	 	100,602	 	 	3,651	 	3.6	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue less operating expenses and real estate taxes	 	$	4,698	 	$	6,469	 	$	(1,771	)	-27.4	%	$	176,535	 	$	180,756	 	$	(4,221	)	-2.3	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—subtotal	 	$	17,527	 	$	19,993	 	 	 	 	 	 	$	280,788	 	$	281,358	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less Straight Line Rent	 	 	3	 	 	—	 	 	3	 	100.0	%	 	8,348	 	 	10,041	 	 	(1,693	)	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue—cash basis	 	 	17,524	 	 	19,993	 	 	(2,469	)	-12.3	%	 	272,440	 	 	271,317	 	 	1,123	 	0.4	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating expenses and real estate taxes	 	 	12,829	 	 	13,524	 	 	(695	)	-5.1	%	 	104,253	 	 	100,602	 	 	3,651	 	3.6	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Rental revenue less operating expenses and real estate taxes—cash basis	 	$	4,695	 	$	6,469	 	$	(1,774	)	-27.4	%	$	168,187	 	$	170,715	 	$	(2,528	)	-1.5	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
47

Boston Properties, Inc.
Third Quarter 2003

PROPERTY PERFORMANCE

All In-Service Properties—quarter ended September 30, 2003
 
	 	Office

	 	Office/Technical

	 	Industrial

	 	Total

	 	
Vacant space available @ 07/01/03 (sf)	 	 	2,051,783	 	 	152,738	 	 	41,168	 	 	2,245,689	 	
Property dispositions	 	 	—	 	 	—	 	 	—	 	 	—	 	
New development completed (sf)	 	 	—	 	 	—	 	 	—	 	 	—	 	
Leases expiring or terminated 07/01/03—09/30/03 (sf)	 	 	918,737	 	 	65,136	 	 	128,105	 	 	1,111,978	 	

	 	

	 	

	 	

	 	
Total space for lease (sf)	 	 	2,970,520	 	 	217,874	 	 	169,273	 	 	3,357,667	 	

	 	

	 	

	 	

	 	
New tenants (sf)	 	 	217,758	 	 	26,811	 	 	—	 	 	244,569	 	
Renewals (sf)	 	 	661,296	 	 	18,455	 	 	679,751	 	 	 	 	

	 	

	 	

	 	

	 	
Total space leased (sf)	 	 	879,054	 	 	45,266	 	 	—	 	 	924,320	 	

	 	

	 	

	 	

	 	
Space available @ 09/30/03 (sf)	 	 	2,091,466	 	 	172,608	 	 	169,273	 	 	2,433,347	 	

	 	

	 	

	 	

	 	
Net (increase)/decrease in available space (sf)	 	 	(39,683	)	 	(19,870	)	 	(128,105	)	 	(187,658	)	
Average lease term (months)	 	 	73	 	 	33	 	 	—	 	 	71	 	
2nd generation TI/Comm PSF	 	$	6.43	 	$	8.20	 	$	—	 	$	6.52	 	
Increase (decrease) in 2nd generation net rents (1)	 	 	-14.05	%	 	-1.68	%	 	0.00	%	 	-13.64	%	

(1)
Represents increase in net rents on a "cash to cash" basis (actual net rent at time of expiration vs. initial net rent of new lease).

(2)
Details of 1st and 2nd generation space:

	 	1st Generation

	 	2nd Generation

	 	Total
Leased

	
Boston	 	64,530	 	159,414	 	223,944	
Washington	 	—	 	576,135	 	576,135	
New York	 	—	 	19,744	 	19,744	
San Francisco	 	—	 	72,905	 	72,905	
Princeton	 	—	 	31,592	 	31,592	

	 	

	 	

	
 	 	64,530	 	859,790	 	924,320	

	 	

	 	

	
48

Boston Properties, Inc.
Third Quarter 2003

HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS

Historical Capital Expenditures
(in thousands)
 
	 	Q3 2003

	 	Q2 2003

	 	Q1 2003

	 	2002

	 	2001

	
Recurring capital expenditures	 	$	3,415	 	$	4,726	 	$	1,960	 	$	16,674	 	$	11,770	
Planned non-recurring capital expenditures associated with acquisition properties (1)	 	 	446	 	 	596	 	 	2,324	 	 	31,908	 	 	45,052	
Hotel improvements, equipment upgrades and replacements	 	 	353	 	 	911	 	 	405	 	 	3,218	 	 	9,230	

	 	

	 	

	 	

	 	

	
 	 	$	4,214	 	$	6,233	 	$	4,689	 	$	51,800	 	$	66,052	

	 	

	 	

	 	

	 	

	

2nd Generation Tenant Improvements and Leasing Commissions(2)
(in thousands, except per share amounts)
 
	 	Q3 2003

	 	Q2 2003

	 	Q1 2003

	 	2002

	 	2001

	
Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Square feet	 	 	814,524	 	 	448,021	 	 	501,547	 	 	2,122,409	 	 	2,394,291	

	 	

	 	

	 	

	 	

	
 	Tenant improvement and lease commissions PSF	 	$	6.43	 	$	13.61	 	$	8.34	 	$	20.17	 	$	17.47	

	 	

	 	

	 	

	 	

	
Office/Technical	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Square feet	 	 	45,266	 	 	47,147	 	 	4,700	 	 	347,321	 	 	348,178	

	 	

	 	

	 	

	 	

	
 	Tenant improvement and lease commissions PSF	 	$	8.20	 	$	0.12	 	$	0.86	 	$	1.42	 	$	3.13	

	 	

	 	

	 	

	 	

	
Industrial	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Square feet	 	 	—	 	 	—	 	 	—	 	 	244,904	 	 	—	

	 	

	 	

	 	

	 	

	
 	Tenant improvement and lease commissions PSF	 	$	—	 	$	—	 	$	—	 	$	0.62	 	$	—	

	 	

	 	

	 	

	 	

	
 	Average tenant improvement and lease commission PSF	 	$	6.52	 	$	12.33	 	$	8.27	 	$	16.01	 	$	15.65	

	 	

	 	

	 	

	 	

	

(1)
Includes budgeted costs associated with previously disclosed acquisitions.

(2)
Based on leases executed during the period.

49

Boston Properties, Inc.
Third Quarter 2003

VALUE CREATION PIPELINE—ACQUISITIONS/DISPOSITIONS
as of September 30, 2003

ACQUISITIONS
For the period from January 1, 2003 through September 30, 2003
Property

	 	Date Acquired

	 	Square Feet

	 	Initial
Investment

	 	Anticipated
Future
Investment

	 	Total
Investment

	 	Current
Leased

	 	
Discovery Square (remaining 50% interest)	 	Apr-03	 	366,989	 	$	18,273,000	 	$	—	 	$	18,273,000	 	96	%	
One Freedom Square (remaining 75% interest)	 	Aug-03	 	410,308	 	 	19,294,397	 	 	—	 	 	19,294,397	 	100	%	
Two Freedom Square (remaining 50% interest)	 	Aug-03	 	422,504	 	 	16,705,603	 	 	18,868,034	 	 	35,573,637	 	100	%	
South of Market—Reston, VA Land	 	Aug-03	 	N/A	 	 	13,522,000	 	 	—	 	 	13,522,000	 	N/A	 	

	 	

	 	

	 	

	 	

	 	
 	Total Value Creation Pipeline—Acquisitions	 	 	 	1,199,801	 	$	67,795,000	 	$	18,868,034	 	$	86,663,034	 	99	%	

	 	

	 	

	 	

	 	

	 	

DISPOSITIONS
For the period from January 1, 2003 through September 30, 2003
Property and other assets

	 	Date Disposed

	 	Square Feet

	 	Gross
Sales Price

	 	Book Gain(Loss)

	 	
The Candler Building	 	Jan-03	 	540,706	 	$	63,067,000	 	$	(292,564	)	
875 Third Avenue	 	Feb-03	 	711,901	 	 	370,100,000	(1)	 	90,020,729	 	
2300 N Street	 	Mar-03	 	289,243	 	 	122,000,000	(2)	 	64,310,972	 	
Prudential Center garage spaces	 	May-03	 	N/A	 	 	1,935,000	 	 	153,000	 	
Transfer of mortgage	 	Various	 	N/A	 	 	5,780,000	 	 	5,780,000	 	

	 	

	 	

	 	
Total Dispositions	 	 	 	1,541,850	 	$	562,882,000	 	$	159,972,137	 	

	 	

	 	

	 	

(1)
Includes $8.8 million of future tenant improvement work credited to buyer at closing.

(2)
Includes $8.0 million of future tenant improvement work credited to buyer at closing.

50

Boston Properties, Inc.
Third Quarter 2003

VALUE CREATION PIPELINE—CONSTRUCTION IN PROGRESS
as of September 30, 2003
Development Properties

	 	Initial Occupancy

	 	Estimated
Stabilization
Date

	 	Location

	 	# of
Buildings

	 	Square feet

	 	Investment
to Date

	 	Estimated
Total
Investment(1)

	 	Total
Construction
Loan

	 	Amount
Drawn at
September 30, 2003

	 	Estimated
Future Equity
Requirement

	 	Percentage
Leased

	 	
New Dominion Tech, Building Two	 	Q3 2004	 	Q3 2004	 	Herndon, VA	 	1	 	257,400	 	$	32,209,172	 	$	67,589,000	 	$	65,000,000	 	$	31,514,521	 	$	1,894,349	 	100	%	
Times Square Tower	 	Q2 2004	 	Q2 2005	 	New York, NY	 	1	 	1,234,272	 	 	462,517,552	 	 	653,500,000	 	 	493,500,000	 	 	310,362,351	 	 	7,844,799	 	23	%	
901 New York Avenue (25% ownership)	 	Q3 2004	 	Q3 2005	 	Washington, D.C.	 	1	 	538,463	 	 	21,744,648	 	 	44,777,000	 	 	30,000,000	 	 	8,481,095	 	 	1,513,447	 	80	%	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
Total Development Properties	 	 	 	 	 	 	 	3	 	2,030,135	 	$	516,471,372	 	$	765,866,000	 	$	588,500,000	 	$	350,357,967	 	$	11,252,395	 	48	%	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

DEVELOPMENTS PLACED-IN-SERVICE DURING 2003
Class A Office Building

	 	Initial
At Service Date

	 	Estimated
Stabilization
Date

	 	Location

	 	# of
Buildings

	 	Square feet

	 	Investment
to Date

	 	Estimated
Total
Investment(1)

	 	Construction
Loan

	 	Drawn at
September 30, 2003

	 	Estimated
Future Equity
Requirement

	 	Percentage
Leased

	 	
Waltham Weston Corporate Center	 	Q1 2002	 	Q4 2003	 	Waltham, MA	 	1	 	306,354	 	$	70,826,568	 	$	85,000,000	 	$	—	 	$	—	 	$	14,173,432	 	65	%	
Two Freedom Square (50% ownership)	 	Q3 2002	 	Q2 2003	 	Reston, VA	 	1	 	422,504	 	 	39,901,983	 	 	49,336,000	 	 	—	 	 	—	 	 	9,434,017	 	100	%	
Shaws Supermarket	 	Q2 2003	 	Q2 2003	 	Boston, MA	 	1	 	57,235	 	 	23,390,659	 	 	24,034,000	 	 	—	 	 	—	 	 	643,341	 	100	%	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	
Total Developments Placed in Service	 	 	 	 	 	 	 	3	 	786,093	 	$	134,119,210	 	$	158,370,000	 	$	—	 	$	—	 	$	24,250,790	 	86	%	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

	 	

(1)
Includes net revenues during lease-up period and cash component of hedge contracts.

51

Boston Properties, Inc.
Third Quarter 2003

VALUE CREATION PIPELINE—OWNED LAND PARCELS
as of September 30, 2003
Location

	 	No. of
Parcels

	 	Acreage

	 	Developable
Square Feet

	
Rockville, MD	 	3	 	72.2	 	1,037,000	
Dulles, VA	 	2	 	76.6	 	945,000	
Gaithersburg, MD	 	4	 	27.0	 	850,000	
San Jose, CA	 	5	 	3.7	 	841,000	
Reston, VA	 	4	 	42.6	 	1,602,000	
Boston, MA	 	2	 	0.5	 	776,000	
Marlborough, MA	 	1	 	50.0	 	400,000	
Weston, MA	 	1	 	74.0	 	350,000	
Waltham, MA	 	1	 	4.3	 	202,000	
Andover, MA	 	1	 	10.0	 	110,000	
Washington, D.C.	 	1	 	0.5	 	170,000	

	 	

	 	

	
 	 	25	 	361.4	 	7,283,000	

	 	

	 	

	

VALUE CREATION PIPELINE—LAND PURCHASE OPTIONS
as of September 30, 2003
Location

	 	No. of
Parcels

	 	Acreage

	 	Developable
Square Feet

	
Princeton, NJ (1)	 	14	 	149.9	 	1,900,000	
Washington, D.C. (2)	 	1	 	3.7	 	1,132,000	
Framingham, MA (2)	 	1	 	21.5	 	300,000	
Cambridge, MA (3)	 	1	 	2.6	 	165,000	

	 	

	 	

	
 	 	17	 	177.7	 	3,497,000	

	 	

	 	

	

(1)
$20.00 per developable square foot plus an earnout calculation.

(2)
Subject to ground lease.

(3)
Prior to January 23, 2004, the cost will be $28.32/SF of land area. Land area is approximately 108,000 SF.

52

Boston Properties, Inc.
Third Quarter 2003

Definitions

        This section contains a brief explanation of certain non-GAAP financial measures we provide in other sections of this document, and a statement of the reasons why management believes these measures provide useful information to investors about the company's financial condition or results of operations. Additional detail can be found in the company's most recent annual report on Form 10-K and other documents filed with the SEC from time to time.

Funds from Operations:

        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) (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP"), including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company's real estate between periods or as compared to different 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 addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after specific supplemental adjustments, including net derivative losses and early surrender lease adjustments. Although our FFO as adjusted clearly differs from NAREIT's definition of FFO, as well as that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.

Funds Available for Distribution (FAD)

        In addition to FFO, we present Funds Available for Distribution (FAD) by (1) adding to FFO non-real estate depreciation, (2) eliminating the effect of straight-line rent, and (3) subtracting: recurring capital expenditures; hotel improvements, equipment upgrades and replacements; and second generation tenant improvement and leasing commissions. In addition, this calculation includes all non-cash compensation expense related to restricted securities. Although our FAD as adjusted differs from that of other real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we believe that to further understand our liquidity, FAD should be compared with our cash flows in accordance with GAAP, as presented in our consolidated financial statements. Our computation of FAD may not be comparable to FAD reported by other REITs or real estate companies and FAD does not represent cash generated from operating activities determined in accordance with GAAP, and should not be considered as an

alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined in accordance with GAAP), or as a measure of our liquidity.

Debt to Total Market Capitalization Ratio

        Debt to total market capitalization ratio, defined as total consolidated debt as a percentage of the market value of our outstanding equity securities plus our total consolidated debt, is a measure of leverage commonly used by analysts in the REIT sector. Total market capitalization is the sum of our total indebtedness outstanding on a consolidated basis (excluding unconsolidated joint venture debt) and the market value of our outstanding equity securities calculated using the closing stock price per share of common stock of the company multiplied by the sum of (1) the actual aggregate number of outstanding common partnership units of our operating partnership (including common partnership units held by the company) and (2) the number of common partnership units issuable upon conversion of preferred partnership units of our operating partnership. We are presenting this ratio because our degree of leverage could affect our ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Investors should understand that our debt to total market capitalization ratio is in part a function of the market price of the common stock of Boston Properties, Inc., and as such will fluctuate with changes in such price and does not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt obligations. However, for a company like ours, whose assets are primarily income-producing real estate, the debt to total market capitalization ratio may provide investors with an alternate indication of leverage, so long as it is 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 our outstanding indebtedness.

        If you would like to receive this document in a different electronic format, please call investor relations at 617-236-3322.

53

QuickLinks
Exhibit 99.1
INDEX
COMPANY BACKGROUND
INVESTOR INFORMATION
FINANCIAL HIGHLIGHTS
CONSOLIDATED BALANCE SHEETS (in thousands)
CONSOLIDATED INCOME STATEMENTS
Interest Coverage Ratios (in thousands, except for ratio amounts)
Boston Properties, Inc. Third Quarter 2003
CAPITAL STRUCTURE
Debt (in thousands)
Equity (in thousands)
Boston Properties, Inc. Third Quarter 2003
DEBT ANALYSIS
Debt Maturities and Principal Payments (in thousands)
Unsecured Debt Unsecured Line of Credit — Matures January 17, 2006 (in thousands)
Unsecured Senior Notes (in thousands)
Unsecured and Secured Debt Analysis
Floating and Fixed Rate Debt Analysis
Senior Unsecured Debt Covenant Compliance Ratios (in thousands)
DEBT MATURITIES AND PRINCIPAL PAYMENTS (in thousands)
DEBT MATURITIES AND PRINCIPAL PAYMENTS (in thousands)
UNCONSOLIDATED JOINT VENTURES Miscellaneous Balance Sheet Information (unaudited and in thousands) as of September 30, 2003
Results of Operations (unaudited and in thousands) for the three months ended September 30, 2003
UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)
Debt Maturities and Principal Payments (in thousands)
Floating and Fixed Rate Debt Analysis
Debt Maturities and Principal Payments by Property (in thousands)
Boston Properties, Inc. Third Quarter 2003
PORTFOLIO OVERVIEW — SQUARE FOOTAGE Rentable Square Footage of In-Service Properties by Location and Type of Property
Hotel Properties
Structured Parking
Boston Properties, Inc. Third Quarter 2003
In-Service Property Listing as of September 30, 2003
Boston Properties, Inc. Third Quarter 2003
In-Service Property Listing as of September 30, 2003
Boston Properties, Inc. Third Quarter 2003
In-Service Property Listing as of September 30, 2003
Boston Properties, Inc. Third Quarter 2003
In-Service Property Listing as of September 30, 2003
Boston Properties, Inc. Third Quarter 2003
TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION
TOP 20 TENANTS BY SQUARE FEET LEASED
Major Signed Deals for Future Development
TENANT DIVERSIFICATION (GROSS RENT)
Boston Properties, Inc. Third Quarter 2003
PORTFOLIO OVERVIEW
Boston Properties, Inc. Third Quarter 2003 OCCUPANCY ANALYSIS
Boston Properties, Inc. Third Quarter 2003 IN-SERVICE OFFICE PROPERTIES
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003
Boston Properties, Inc. Third Quarter 2003 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
Boston Properties, Inc. Third Quarter 2003 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
Boston Properties, Inc. Third Quarter 2003
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
Lease Expirations—Midtown Manhattan
Boston Properties, Inc. Third Quarter 2003
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
Quarterly Lease Expirations—Midtown Manhattan
Boston Properties, Inc. Third Quarter 2003
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
Lease Expirations — Princeton/East Brunswick
Boston Properties, Inc. Third Quarter 2003
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES Quarterly Lease Expirations — Princeton/East Brunswick
Boston Properties, Inc. Third Quarter 2003
IN-SERVICE OTHER PROPERTIES Lease Expirations Other Properties (Richmond, VA; Baltimore, MD; Bucks County, PA)
IN-SERVICE OTHER PROPERTIES Quarterly Lease Expirations Other Properties (Richmond, VA; Baltimore, MD; Bucks County, PA)
Boston Properties, Inc. Third Quarter 2003
HOTEL PERFORMANCE Long Wharf Marriott—Boston
Cambridge Center Marriott
Residence Inn by Marriott
Total Hotel Performance
Boston Properties, Inc. Third Quarter 2003
SAME PROPERTY PERFORMANCE
Same Property Lease Analysis—quarter ended September 30, 2003
Boston Properties, Inc. Third Quarter 2003
Reconciliation to Same Property Performance (in thousands)
Boston Properties, Inc. Third Quarter 2003
PROPERTY PERFORMANCE
All In-Service Properties—quarter ended September 30, 2003
Boston Properties, Inc. Third Quarter 2003
HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
Historical Capital Expenditures (in thousands)
2nd Generation Tenant Improvements and Leasing Commissions(2) (in thousands, except per share amounts)
Boston Properties, Inc. Third Quarter 2003
VALUE CREATION PIPELINE—ACQUISITIONS/DISPOSITIONS as of September 30, 2003
ACQUISITIONS For the period from January 1, 2003 through September 30, 2003
DISPOSITIONS For the period from January 1, 2003 through September 30, 2003
Boston Properties, Inc. Third Quarter 2003
VALUE CREATION PIPELINE—CONSTRUCTION IN PROGRESS as of September 30, 2003
DEVELOPMENTS PLACED-IN-SERVICE DURING 2003
Boston Properties, Inc. Third Quarter 2003
VALUE CREATION PIPELINE—OWNED LAND PARCELS as of September 30, 2003
VALUE CREATION PIPELINE—LAND PURCHASE OPTIONS as of September 30, 2003
Boston Properties, Inc. Third Quarter 2003
Definitions

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Exhibit 99.2
[FRB LOGO]	 	Boston Properties, Inc.
111 Huntington Avenue
Boston, MA 02199
(NYSE: BXP)	

AT THE COMPANY
Investor Relations
(617) 236-3322	
 	
AT FRB/WEBER SHANDWICK
Marilynn Meek—General Info. (212) 445-8431
Suzie Pileggi—Media (212) 445-8170	

FOR IMMEDIATE RELEASE :
November 6, 2003	

BOSTON PROPERTIES, INC. REFLECTS IMPACT OF DEFERRAL
OF SFAS NO. 150 ON THIRD QUARTER 2003 NET INCOME; FFO REMAINS UNCHANGED
Reports diluted FFO per share of $0.98	 	Reports diluted EPS of $0.57	
BOSTON, MA, November 6, 2003—Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, today announced that as a result of the Financial Accounting Standards Board's October 29, 2003 decision to defer paragraphs 9 and 10 of SFAS No. 150, "Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity," as they apply to mandatorily redeemable noncontrolling interests, the Company is not required to recognize a non-cash charge of ($0.10) per share for the cumulative effect of a change in accounting principle in the third quarter of 2003 related to the minority interest in equity of one of the Company's consolidated joint ventures. Accordingly, net income available to common shareholders per share (EPS) for the quarter ended September 30, 2003 was $0.59 basic and $0.57 on a diluted basis. The Company had previously announced on October 21, 2003 that EPS was $0.48 basic and $0.48 on a diluted basis, which included a SFAS No. 150-required non-cash charge of $9.8 million (or ($0.10) per share). The deferral of SFAS No. 150 has no effect on reported Funds from Operations.

The Company is reissuing its third quarter earnings press release in its entirety to reflect the deferral of SFAS No. 150 and to update all applicable disclosures and related financial tables.

Funds from Operations (FFO) for the quarter ended September 30, 2003 were $99.1 million, or $1.02 per share basic and $0.98 per share diluted before the application of SFAS No. 133, "Accounting for Derivative Instruments and Hedging Activities," as amended. This compares to FFO of $99.0 million, or $1.04 per share basic and $1.00 per share diluted for the quarter ended September 30, 2002. The weighted average number of basic and diluted shares outstanding totaled 97,360,498 and 107,231,333, respectively, for the quarter ended September 30, 2003 and 94,903,894 and 105,724,729, respectively, for the same quarter last year.

Net income available to common shareholders per share (EPS) for the quarter ended September 30, 2003 was $0.59 basic and $0.57 on a diluted basis. This compares to EPS for the third quarter of 2002 of $0.75 basic and $0.74 on a diluted basis. EPS for the third quarter of 2003 includes $0.01 related to a gain on sale of real estate and other assets. EPS for the third quarter of 2002 included $0.19 related to gains on sales of real estate and discontinued operations. Excluding the impact of these items, diluted EPS was $0.56 for the quarter ended September 30, 2003 compared to $0.55 for the third quarter of 2002.

The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended September 30, 2003. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.

As of September 30, 2003, the Company's portfolio consisted of 139 properties comprising more than 43.5 million square feet, including three properties under construction totaling 2.0 million square feet.

The overall percentage of leased space for the properties in service as of September 30, 2003 was 92.2%.

Significant events of the third quarter include:

•
On August 5, 2003, the Company acquired the remaining outside interests in its One Freedom Square and Two Freedom Square joint venture properties located in Reston, Virginia for an aggregate of $36.0 million of cash and the assumption of the outside partner's share of the mortgage debt on the properties of approximately $56.4 million and $35.4 million, respectively. Subsequent to the acquisition, the Company repaid in full the mortgage debt on the Two Freedom Square property totaling $70.7 million. For 2004, the Company projects these properties' combined Unleveraged FFO Return to be 10.8% and Unleveraged Cash Return to be 9.8%. The calculation of these returns and related disclosures are presented on the accompanying table entitled "Projected 2004 Returns on Acquisitions." There can be no assurances that actual returns will not differ materially from these projections. Also on August 5, 2003, the Company acquired a 5.2-acre parcel of land in Reston, Virginia for $13.5 million of cash. The site will support approximately 507,000 square feet of commercial development.

•
On August 12, 2003, Boston Properties Limited Partnership, the Company's Operating Partnership, exercised its redemption right and caused all of the outstanding Series One Preferred Units to be converted into common Operating Partnership units.

•
On August 19, 2003, the Company recognized a gain on sale of $1.3 million (net of minority interest in Operating Partnership's share of $0.3 million) related to the transfer of the remaining mortgage on the Five Times Square property in New York City.

•
On September 4, 2003, the Company modified an $87.9 million mortgage loan that is secured by the 601 and 651 Gateway Boulevard properties in South San Francisco, California. The loan bore interest at 8.40% per annum and was scheduled to mature on October 1, 2010. In connection with the modification, the Company repaid $5.7 million of principal. The modified mortgage loan of $82.2 million requires monthly payments equal to the net cash flow from the property which will be allocated first to interest based on a rate of 3.50% per annum with the remainder applied to principal. The modified mortgage loan matures on September 1, 2006.

•
On September 9, 2003, the Company completed registered exchange offers for its 5.625% senior notes due 2015 and 5.00% senior notes due 2015, as required by agreements with the initial purchasers of the notes. The exchanges did not involve any changes in principal amount, interest rate or other terms of the notes.

•
On September 11, 2003, the Company entered into a joint venture with an unaffiliated third party to pursue the development of a Class A office property at 801 New Jersey Avenue in Washington, D.C. that would support approximately 1.1 million square feet of commercial development. The Company made an initial cash contribution of $3.0 million for a 50% interest in the joint venture.

Transactions completed subsequent to September 30, 2003:

•
On October 8, 2003, the Company acquired 1333 New Hampshire Avenue, a 320,000 square foot Class A office property in Washington, D.C. at a purchase price of approximately $111.6 million. The acquisition was financed with borrowings under the Company's unsecured revolving credit facility and available cash. The property is 100% leased. For 2004, the Company projects this property's Unleveraged FFO Return to be 10.6% and Unleveraged Cash Return to be 8.2%. The calculation of these returns and related disclosures are presented on the accompanying table entitled "Projected 2004 Returns on Acquisitions." There can be no assurances that actual returns will not differ materially from these projections.

EPS and FFO Per Share Guidance:

        The Company's guidance for the fourth quarter of 2003 and the full year of 2004 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. The reconciliation of Projected EPS to Projected FFO per share, as provided below, is consistent with the Company's historical computations.
 
	 	Fourth Quarter 2003

	 	Full Year 2004

	
 
	 	Low
	 	–
	 	High
	 	Low
	 	–
	 	High

	 	

	 	

	
Projected EPS (diluted)	 	$	0.59	 	–	 	$	0.61	 	$	2.23	 	–	 	$	2.41	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Projected Company Share of Real Estate Depreciation and Amortization	 	$	0.45	 	–	 	$	0.44	 	$	1.85	 	–	 	$	1.85	
Projected Company Share of Net Derivatives	 	$	0.00	 	–	 	$	0.00	 	$	0.00	 	–	 	$	0.00	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Dilutive Impact of Preferred Securities	 	$	0.04	 	–	 	$	0.04	 	$	0.15	 	–	 	$	0.15	

	 	

	 	

	 	

	 	

	 	

	
Projected FFO per Share (diluted) before net derivatives	 	$	1.00	 	–	 	$	1.01	 	$	3.93	 	–	 	$	4.11	
The foregoing estimates reflect management's view of current and future market conditions, including certain assumptions with respect to rental rates, occupancy levels and earnings impact of the events referenced in this release. There can be no assurance that the Company's actual results will not differ materially from the estimates set forth above.

Boston Properties hosted a conference call on October 22, 2003 to discuss the results of this year's third quarter. An audio-webcast has been archived and may be accessed at  www.bostonproperties.com  in the Investors section under the heading Audio Archive .

Additionally, a copy of Boston Properties' third quarter 2003 "Supplemental Operating and Financial Data" (which now also reflects the impact of the deferral of SFAS No. 150) and this press release are available in the Investors section of the Company's website at  www.bostonproperties.com . These materials are also available by contacting Investor Relations at (617) 236-3322 or by written request to:

Investor Relations
Boston Properties, Inc.
111 Huntington Avenue, Suite 300
Boston, MA 02199-7610

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 Class A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in four core markets—Boston, Midtown Manhattan, Washington, D.C. and San Francisco.

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 "expects," "plans," "estimates," "projects," "intends," "believes" 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 ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, the impact of newly adopted accounting principles 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. The Company does not undertake a duty to update forward-looking statements, including its expected operating results for the fourth quarter of 2003 and the full year of 2004.

Financial tables follow.

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS
 
	 	Three months ended
September 30,

	 	Nine months ended
September 30,

	 	
 
	 	2003

	 	2002

	 	2003

	 	2002

	 	
 
	 	(in thousands, except for per share amounts)
(unaudited)

Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Rental:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Base rent	 	$	253,594	 	$	229,453	 	$	749,795	 	$	678,766	 	
 	 	Recoveries from tenants	 	 	42,079	 	 	34,884	 	 	119,222	 	 	103,409	 	
 	 	Parking and other	 	 	13,249	 	 	13,056	 	 	41,399	 	 	37,610	 	

	 	

	 	

	 	

	 	
 	 	 	Total rental revenue	 	 	308,922	 	 	277,393	 	 	910,416	 	 	819,785	 	
 	Hotel revenue	 	 	17,542	 	 	20,007	 	 	48,001	 	 	20,007	 	
 	Development and management services	 	 	3,616	 	 	2,571	 	 	13,635	 	 	7,979	 	
 	Interest and other	 	 	1,089	 	 	1,222	 	 	2,167	 	 	4,804	 	

	 	

	 	

	 	

	 	
 	 	 	Total revenue	 	 	331,169	 	 	301,193	 	 	974,219	 	 	852,575	 	

	 	

	 	

	 	

	 	
Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Operating:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	 	Rental	 	 	107,404	 	 	95,118	 	 	302,195	 	 	269,940	 	
 	 	Hotel	 	 	12,829	 	 	13,524	 	 	36,258	 	 	13,524	 	
 	General and administrative	 	 	11,183	 	 	9,956	 	 	33,610	 	 	34,589	 	
 	Interest	 	 	75,343	 	 	65,476	 	 	224,435	 	 	190,657	 	
 	Depreciation and amortization	 	 	53,455	 	 	43,933	 	 	154,021	 	 	127,819	 	
 	Net derivative (gains)/losses	 	 	(885	)	 	5,284	 	 	1,038	 	 	10,413	 	
 	Loss from early extinguishment of debt	 	 	—	 	 	—	 	 	1,474	 	 	—	 	
 	Loss on investments in securities	 	 	—	 	 	—	 	 	—	 	 	4,297	 	

	 	

	 	

	 	

	 	
 	 	 	Total expenses	 	 	259,329	 	 	233,291	 	 	753,031	 	 	651,239	 	

	 	

	 	

	 	

	 	
Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and other assets, discontinued operations and preferred dividend	 	 	71,840	 	 	67,902	 	 	221,188	 	 	201,336	 	
Minority interests in property partnerships	 	 	563	 	 	720	 	 	1,205	 	 	1,903	 	
Income from unconsolidated joint ventures	 	 	1,343	 	 	2,530	 	 	5,354	 	 	5,871	 	

	 	

	 	

	 	

	 	
Income before minority interest in Operating Partnership, gains on sales of real estate and other assets, discontinued operations and preferred dividend	 	 	73,746	 	 	71,152	 	 	227,747	 	 	209,110	 	
Minority interest in Operating Partnership	 	 	(18,117	)	 	(18,071	)	 	(55,783	)	 	(54,761	)	

	 	

	 	

	 	

	 	
Income before gains on sales of real estate and other assets, discontinued operations and preferred dividend	 	 	55,629	 	 	53,081	 	 	171,964	 	 	154,349	 	
Gains on sales of real estate and other assets, net of minority interest	 	 	1,341	 	 	3,644	 	 	57,729	 	 	3,644	 	

	 	

	 	

	 	

	 	
Income before discontinued operations and preferred dividend	 	 	56,970	 	 	56,725	 	 	229,693	 	 	157,993	 	
Discontinued Operations:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income from discontinued operations, net of minority interest	 	 	—	 	 	3,032	 	 	1,938	 	 	9,350	 	
 	Gains on sales of real estate from discontinued operations, net of minority interest	 	 	—	 	 	11,910	 	 	73,436	 	 	17,750	 	

	 	

	 	

	 	

	 	
Income before preferred dividend	 	 	56,970	 	 	71,667	 	 	305,067	 	 	185,093	 	
Preferred dividend	 	 	—	 	 	(126	)	 	—	 	 	(3,412	)	

	 	

	 	

	 	

	 	
Net income available to common shareholders	 	$	56,970	 	$	71,541	 	$	305,067	 	$	181,681	 	

	 	

	 	

	 	

	 	
Basic earnings per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income available to common shareholders before discontinued operations	 	$	0.59	 	$	0.59	 	$	2.38	 	$	1.68	 	
 	Discontinued operations, net of minority interest	 	 	—	 	 	0.16	 	 	0.78	 	 	0.29	 	

	 	

	 	

	 	

	 	
 	Net income available to common shareholders	 	$	0.59	 	$	0.75	 	$	3.16	 	$	1.97	 	

	 	

	 	

	 	

	 	
 	Weighted average number of common shares outstanding	 	 	97,360	 	 	94,904	 	 	96,547	 	 	92,413	 	

	 	

	 	

	 	

	 	
Diluted earnings per share:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Income available to common shareholders before discontinued operations	 	$	0.57	 	$	0.59	 	$	2.34	 	$	1.64	 	
 	Discontinued operations, net of minority interest	 	 	—	 	 	0.15	 	 	0.77	 	 	0.29	 	

	 	

	 	

	 	

	 	
 	Net income available to common shareholders	 	$	0.57	 	$	0.74	 	$	3.11	 	$	1.93	 	

	 	

	 	

	 	

	 	
 	Weighted average number of common and common equivalent shares outstanding	 	 	99,183	 	 	96,181	 	 	98,029	 	 	94,026	 	

	 	

	 	

	 	

	 	

BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS
 
	 	September 30,
2003

	 	December 31,
2002

	 	
 
	 	(in thousands, except for share amounts)
(unaudited)

ASSETS	 	 	 	 	 	 	 	
Real estate	 	$	8,060,525	 	$	7,781,684	 	
Development in progress	 	 	481,571	 	 	448,576	 	
Land held for future development	 	 	232,361	 	 	215,866	 	
Real estate held for sale, net	 	 	—	 	 	224,585	 	
 	Less: accumulated depreciation	 	 	(952,754	)	 	(822,933	)	

	 	

	 	
 	 	 	Total real estate	 	 	7,821,703	 	 	7,847,778	 	
Cash and cash equivalents	 	 	37,621	 	 	55,275	 	
Cash held in escrows	 	 	27,992	 	 	41,906	 	
Tenant and other receivables, net	 	 	21,813	 	 	20,458	 	
Accrued rental income, net	 	 	175,063	 	 	165,321	 	
Deferred charges, net	 	 	178,819	 	 	176,545	 	
Prepaid expenses and other assets	 	 	57,012	 	 	18,015	 	
Investments in unconsolidated joint ventures	 	 	88,632	 	 	101,905	 	

	 	

	 	
 	 	 	Total assets	 	$	8,408,655	 	$	8,427,203	 	

	 	

	 	
LIABILITIES AND STOCKHOLDERS' EQUITY	 	 	 	 	 	 	 	
Liabilities:	 	 	 	 	 	 	 	
 	Mortgage notes payable	 	$	3,450,112	 	$	4,267,119	 	
 	Unsecured senior notes, net of discount	 	 	1,470,231	 	 	747,375	 	
 	Unsecured bridge loan	 	 	—	 	 	105,683	 	
 	Unsecured line of credit	 	 	—	 	 	27,043	 	
 	Accounts payable and accrued expenses	 	 	69,940	 	 	73,846	 	
 	Dividends and distributions payable	 	 	83,972	 	 	81,226	 	
 	Interest rate contracts	 	 	9,875	 	 	14,514	 	
 	Accrued interest payable	 	 	44,010	 	 	25,141	 	
 	Other liabilities	 	 	69,242	 	 	81,085	 	

	 	

	 	
 	 	 	Total liabilities	 	 	5,197,382	 	 	5,423,032	 	

	 	

	 	
Commitments and contingencies	 	 	 	 	 	—	 	

	 	

	 	
Minority interests	 	 	829,779	 	 	844,581	 	

	 	

	 	
Stockholders' equity:	 	 	 	 	 	 	 	
 	Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding	 	 	—	 	 	—	 	
 	Preferred stock, $.01 par value, 50,000,000 shares authorized, none issued or outstanding	 	 	—	 	 	—	 	
 	Common stock, $.01 par value, 250,000,000 shares authorized, 97,656,565 and 95,441,890 shares issued and 97,577,665 and 95,362,990 shares outstanding in 2003 and 2002, respectively	 	 	976	 	 	954	 	
 	Additional paid-in capital	 	 	2,084,490	 	 	1,982,689	 	
 	Earnings in excess of dividends	 	 	322,530	 	 	198,586	 	
 	Treasury common stock, at cost	 	 	(2,722	)	 	(2,722	)	
 	Unearned compensation	 	 	(7,271	)	 	(2,899	)	
 	Accumulated other comprehensive loss	 	 	(16,509	)	 	(17,018	)	

	 	

	 	
 	 	 	Total stockholders' equity	 	 	2,381,494	 	 	2,159,590	 	

	 	

	 	
 	 	 	 	Total liabilities and stockholders' equity	 	$	8,408,655	 	$	8,427,203	 	

	 	

	 	

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS(1)
 
	 	Three months ended
September 30,

	 	Nine months ended
September 30,

	 	
 
	 	2003

	 	2002

	 	2003

	 	2002

	 	
 
	 	(in thousands, except for per share amounts)
(unaudited)

Net income available to common shareholders	 	$	56,970	 	$	71,541	 	$	305,067	 	$	181,681	 	
Add:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Preferred dividend	 	 	—	 	 	126	 	 	—	 	 	3,412	 	
 	Minority interest in Operating Partnership	 	 	18,117	 	 	18,071	 	 	55,783	 	 	54,761	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Minority interests in property partnerships	 	 	563	 	 	720	 	 	1,205	 	 	1,903	 	
 	Income from unconsolidated joint ventures	 	 	1,343	 	 	2,530	 	 	5,354	 	 	5,871	 	
 	Gains on sales of real estate and other assets, net of minority interest	 	 	1,341	 	 	3,644	 	 	57,729	 	 	3,644	 	
 	Income from discontinued operations, net of minority interest	 	 	—	 	 	3,032	 	 	1,938	 	 	9,350	 	
 	Gains on sales of real estate from discontinued operations, net of minority interest	 	 	—	 	 	11,910	 	 	73,436	 	 	17,750	 	
Income before minority interests in property partnerships, income from unconsolidated joint ventures, minority interest in Operating Partnership, gains on sales of real estate and other assets, discontinued operations and preferred dividend	 	$	71,840	 	$	67,902	 	$	221,188	 	$	201,336	 	

Add:	

 	

 	

 	

 	
 	
 	Real estate depreciation and amortization	 	 	54,606	 	 	46,971	 	 	158,735	 	 	136,502	 	
 	Income from discontinued operations	 	 	—	 	 	3,687	 	 	2,355	 	 	11,417	 	
 	Income from unconsolidated joint ventures	 	 	1,343	 	 	2,530	 	 	5,354	 	 	5,871	 	
 	Loss from early extinguishment of debt associated with the sale of real estate	 	 	—	 	 	—	 	 	1,474	 	 	—	 	
Less:	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Minority interests in property partnerships' share of funds from operations	 	 	(805	)	 	(521	)	 	(2,513	)	 	(1,833	)	
 	Preferred dividends and distributions	 	 	(5,183	)	 	(6,162	)	 	(16,806	)	 	(22,785	)	

	 	

	 	

	 	

	 	
Funds from operations	 	 	121,801	 	 	114,407	 	 	369,787	 	 	330,508	 	
Add (subtract):	 	 	 	 	 	 	 	 	 	 	 	 	 	
 	Net derivative (gains)/losses (SFAS No. 133)	 	 	(885	)	 	5,284	 	 	1,038	 	 	10,413	 	
 	Early surrender lease adjustment(2)	 	 	—	 	 	667	 	 	—	 	 	8,520	 	

	 	

	 	

	 	

	 	
Funds from operations before net derivative losses (SFAS No. 133) and after early surrender lease adjustment	 	$	120,916	 	$	120,358	 	$	370,825	 	$	349,441	 	

	 	

	 	

	 	

	 	
Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease adjustment	 	$	99,057	 	$	98,980	 	$	305,122	 	$	286,080	 	

	 	

	 	

	 	

	 	
Weighted average shares outstanding—basic	 	 	97,360	 	 	94,904	 	 	96,547	 	 	92,413	 	

	 	

	 	

	 	

	 	
 	FFO per share basic before net derivative losses (SFAS No. 133) and after early surrender adjustment	 	$	1.02	 	$	1.04	 	$	3.16	 	$	3.10	 	

	 	

	 	

	 	

	 	
 	FFO per share basic after net derivative losses (SFAS No. 133) and before early surrender lease adjustment	 	$	1.02	 	$	0.99	 	$	3.15	 	$	2.93	 	

	 	

	 	

	 	

	 	
Weighted average shares outstanding—diluted	 	 	107,231	 	 	105,725	 	 	106,839	 	 	105,870	 	

	 	

	 	

	 	

	 	
 	FFO per share diluted before net derivative losses (SFAS No. 133) and after early surrender lease adjustment	 	$	0.98	 	$	1.00	 	$	3.04	 	$	2.95	 	

	 	

	 	

	 	

	 	
 	FFO per share diluted after net derivative losses (SFAS No. 133) and before early surrender lease adjustment	 	$	0.99	 	$	0.95	 	$	3.03	 	$	2.80	 	

	 	

	 	

	 	

	 	

(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) (computed in accordance with accounting principles generally accepted in the United States of America ("GAAP"), including non-recurring items), for gains (or losses) from sales of properties, real estate related depreciation and amortization, and after adjustment for unconsolidated partnerships and joint ventures.

The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial, improving the understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing the comparative operating and financial performance of the Company because, by excluding gains and losses related to sales of previously depreciated operating real estate assets and excluding real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company's real estate between periods or as compared to different 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 addition to presenting FFO in accordance with the NAREIT definition, we also disclose FFO after specific

supplemental adjustments, including net derivative losses and early surrender lease adjustments. Although our FFO as adjusted clearly differs from NAREIT's definition of FFO, as well as that of other REITs and real estate companies, we believe it provides a meaningful supplemental measure of our operating performance. FFO should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO and FFO as adjusted should be compared with our reported net income and considered in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.(2)
Represents cash received under contractual obligations.

BOSTON PROPERTIES, INC.

PROJECTED 2004 RETURNS ON ACQUISITIONS
 
	 	1333 New
Hampshire
Avenue

	 	One and Two
Freedom Square

	 	
 
	 	(dollars in thousands)

Base rent and recoveries from tenants	 	$	12,600	 	$	27,663	 	
Straight-line rent	 	 	800	 	 	3,467	 	
Fair value lease revenue	 	 	2,000	 	 	(1,393	)	

	 	

	 	
Total rental revenue	 	 	15,400	 	 	29,737	 	
Operating Expenses	 	 	3,300	 	 	6,922	 	

	 	

	 	
Revenue less Operating Expenses	 	 	12,100	 	 	22,815	 	
Interest expense	 	 	—	 	 	(5,178	)	
Depreciation and amortization	 	 	(3,100	)	 	(5,330	)	

	 	

	 	
Net income	 	$	9,000	 	$	12,307	 	
Add:	 	 	 	 	 	 	 	
Interest expense	 	 	—	 	 	5,178	 	
Depreciation and amortization	 	 	3,100	 	 	5,330	 	

	 	

	 	
Unleveraged FFO	 	$	12,100	 	$	22,815	 	
Less:	 	 	 	 	 	 	 	
Straight-line rent	 	 	(800	)	 	(3,467	)	
Fair value lease revenue	 	 	(2,000	)	 	1,393	 	

	 	

	 	
Unleveraged Cash	 	$	9,300	 	$	20,741	(3)	
Cash	 	$	113,800	 	$	36,000	 	
Total debt	 	 	—	 	 	151,500	 	
Existing equity	 	 	—	 	 	6,100	 	
Costs to complete	 	 	—	 	 	18,300	 	

	 	

	 	
Total Investment	 	$	113,800	 	$	211,900	 	
Unleveraged FFO Return (1)	 	 	10.6	%	 	10.8	%	
Unleveraged Cash Return (2)	 	 	8.2	%	 	9.8	%	

(1)
Unleveraged FFO Return is determined by dividing Unleveraged FFO by Total Investment. Other real estate companies may calculate this return differently. Management believes projected Unleveraged FFO Return is a useful measure in the real estate industry when determining the appropriate purchase price for a property or estimating a property's value. When evaluating acquisition opportunities, management considers, among other factors, projected Unleveraged FFO Return because it excludes, among other items, interest expense (which may vary depending on the level of corporate debt or proprety-specific debt), as well as depreciation and amortization expense (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates). In addition, management considers its cost of capital and available financing alternatives in making decisions concerning acquisitions.

(2)
Unleveraged Cash Return is determined by dividing Unleveraged Cash by Total Investment. Other real estate companies may calculate this return differently. Management believes that projected Unleveraged Cash Return is also a useful measure of a property's value when used in addition to Unleveraged FFO Return because it eliminates the effect of straight-lining of rent and the FAS 141 treatment of in-place above and below market leases which over the forecasted period enables an investor to assess the cash on cash return from the property.

(3)
Does not include approximately $1.3 million of free rent granted to a tenant for the first four months of 2004.

Management is presenting these projected returns and related calculations to assist investors in analyzing the Company's recent acquisitions. Management does not intend to present this data for any other purpose, for any other period or for its other properties, and is not intending for these measures to otherwise provide information to investors about the Company's financial condition or results of operations. The Company does not undertake a duty to update any of these projections.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES
 
	 	% Leased by Location

	
 
	 	September 30, 2003

	 	December 31, 2002

	
Greater Boston	 	87.5%	 	91.8%	
Greater Washington, D.C.	 	95.1%	 	95.9%	
Midtown Manhattan	 	98.9%	 	98.4%	
Baltimore, MD	 	98.5%	 	97.6%	
Richmond, VA	 	88.9%	 	91.8%	
Princeton/East Brunswick, NJ	 	95.0%	 	93.3%	
Greater San Francisco	 	85.5%	 	87.4%	
Bucks County, PA	 	100.0%	 	100.0%	

	 	

	
 	Total Portfolio	 	92.2%	 	93.9%	

	 	

	

% Leased by Type

	
 
	 	September 30, 2003

	 	December 31, 2002

	
Class A Office Portfolio	 	93.0%	 	94.1%	
Office/Technical Portfolio	 	86.1%	 	89.7%	
Industrial Portfolio	 	56.6%	 	100.0%	

	 	

	
 	Total Portfolio	 	92.2%	 	93.9%	

	 	

	

QuickLinks
Exhibit 99.2
BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS(1)
BOSTON PROPERTIES, INC. PROJECTED 2004 RETURNS ON ACQUISITIONS
BOSTON PROPERTIES, INC. PORTFOLIO LEASING PERCENTAGES