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Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2003
Boston Properties, Inc.
Third Quarter 2003
| | 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
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
| 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
| | 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 | |
| | 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 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 | 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 | |||
| | 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
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 | % | |||||
| | 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 | % | |||||
| | 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 | % | |||||
| | 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
| | 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
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
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
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