EXHIBIT 99.2
[LOGO] RE: BOSTON PROPERTIES, INC.
800 BOYLSTON STREET, SUITE 400
BOSTON, MA 02199
(NYSE: BXP)
FOR FURTHER INFORMATION:
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Elaine Quinlan Marianne Stewart - General Info. (212) 661-8030
Investor Relations Claire Koeneman - Analyst (312) 266-7800
(617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030
BOSTON PROPERTIES, INC. ANNOUNCES
FOURTH QUARTER AND YEAR END 1999 RESULTS
REPORTS FFO PER SHARE OF $0.74
BOSTON, MA, JANUARY 25, 2000 - Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and year ended December 31, 1999.
Funds from Operations (FFO) for the quarter ended December 31, 1999 were $51.6
million, or $0.76 per share basic and $0.74 per share diluted, compared to FFO
of $43.6 million, or $0.69 per share basic and $0.68 per share diluted for the
quarter ended December 31, 1998. This represents 8.8% year to year increase in
diluted FFO per share. The weighted average number of basic and diluted shares
outstanding totaled 67,906,320 and 81,248,871, respectively, for the quarter
ended December 31, 1999 and 63,527,666 and 68,432,476, respectively, for the
same quarter last year. FFO for the year ended December 31, 1999 were $196.1
million, or $2.96 per share basic and $2.89 per share diluted, compared to FFO
of $153.0 million, or $2.52 per share basic and $2.50 per share diluted for the
year ended December 31, 1998. This represents a 15.6% year to year increase in
diluted FFO per share. The weighted average number of basic and diluted shares
outstanding totaled 66,235,417 and 79,473,337, respectively, for the year ended
December 31, 1999 and 60,776,038 and, 62,443,463, respectively, for the same
period last year.
Revenues were $205.1 million for the quarter and $786.6 million for the year
ended December 31, 1999, compared to revenues of $170.0 million and $513.8
million for the same periods in 1998. Net income available to common
shareholders for the quarter was $34.4 million and $113.9 million for the year
ended December 31, 1999, compared to $18.2 million and $93.1 million for the
same periods in 1998. Income before gain on sale and extraordinary loss per
share for the quarter ended December 31, 1999 was $0.41 per share basic and
diluted and $0.43 per share basic and $0.40 per share diluted for the quarter
ended December 31, 1998. Income before gain on sale and extraordinary loss per
share for the year ended December 31, 1999 was $1.62 per share basic and $1.61
per share diluted, compared to $1.62 per share basic and $1.61 per share diluted
for the same period last year.
-MORE-
The reported results are unaudited and there can be no assurance that the
results will not vary from the final information for the quarter and year ended
December 31, 1999. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of December 31, 1999, the Company's portfolio consisted of 136 properties
comprising more than 35.6 million square feet, including twelve properties under
development totaling 3.6 million square feet. The overall occupancy rate for the
properties in service as of December 31, 1999 was 97.1%.
Additional highlights of the fourth quarter include:
- - Disposition of 8 Arlington Street, a 30,526 square foot office building in
Boston, Massachusetts, on December 14, 1999, for gross cash proceeds of
approximately $10.25 million.
- - Acquisition of a 14.3-acre site and ongoing development of a three
building, 381,000 square foot Class A office complex in Needham,
Massachusetts for approximately $31.0 million on December 14, 1999. The
office complex will be fully leased to Parametric Technology Corporation
under a 12-year lease.
- - Acquisition of a 11.9-acre site in Dulles, Virginia for approximately $2.9
million on December 1, 1999. A 160,502 square foot Class A office building
is currently under development.
- - Closing of a construction loan secured by the New Dominion Technology
development project in the amount of $48.6 million at a rate of LIBOR +
1.60% and maturing in August 2000.
- - Signing of an agreement with Allied Riser Communications Corporation
("Allied") for Allied to provide broadband data, video and voice
communications services over fiber-optic networks to 77 Class A office
buildings comprising more than 20.6 million square feet. The agreement
provides for Boston Properties to participate in any revenues Allied
generates resulting from Boston Properties' buildings and for Boston
Properties to receive 404,438 warrants for shares of common stock in
Allied.
- - Signing an agreement with Cypress Communications ("Cypress") for Cypress to
provide server-based voice, video and data transmission services to 40
Class A office buildings comprising more than 15.3 million square feet. In
return, the agreement provides for Boston Properties to participate in any
revenues Cypress generates resulting from Boston Properties' buildings and
for Boston Properties to receive 231,681 warrants for shares of common
stock in Cypress.
Transactions completed subsequent to December 31, 1999:
- - Acquisition of the Company's joint venture partner's interest in One and
Two Reston Overlook in Reston, Virginia on January 12, 2000 for
approximately $15.2 million.
-MORE-
Boston Properties is a fully integrated, self-administered and self-managed real
estate investment trust that develops, redevelops, acquires, manages, operates
and owns a diverse portfolio of Class A office, industrial and hotel properties.
The Company is one of the largest owners and developers of Class A office
properties in the United States, concentrated in the Northeast Corridor from
Virginia to Greater Boston and in Greater San Francisco.
To receive Boston Properties' latest news and corporate developments via fax at
no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the Company's
web site at http://www.bostonproperties.com.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
FEDERAL SECURITIES LAWS. FORWARD-LOOKING STATEMENTS ARE INHERENTLY SUBJECT TO
RISKS AND UNCERTAINTIES, MANY OF WHICH CANNOT BE PREDICTED WITH ACCURACY.
ACQUISITIONS THAT ARE PURSUED BY BOSTON PROPERTIES MAY NOT BE CONSUMMATED FOR A
VARIETY OF REASONS, INCLUDING A FAILURE TO REACH AGREEMENT WITH THE SELLING
PARTY REGARDING THE ACQUISITION PRICE OR OTHER TERMS OF A CONTRIBUTION OR
ACQUISITION AGREEMENT. AGREEMENTS THAT THE COMPANY ENTERS INTO MAY BE TERMINATED
FOR A VARIETY OF REASONS, INCLUDING A FAILURE BY THE COMPANY OR THE OTHER PARTY
TO FULFILL ALL CONDITIONS REQUIRED FOR CONSUMMATION OF THE AGREEMENTS.
Financial tables follow.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
( IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
Three months ended Year ended
December 31, December 31,
----------------------------------- --------------------------------------
1999 1998 1999 1998
----------------- ---------------- ------------------ ------------------
(unaudited) (unaudited)
Revenue
Rental:
Base rent $ 170,663 $ 140,109 $ 646,924 $ 419,756
Recoveries from tenants 18,864 15,671 72,742 48,718
Parking and other 11,479 6,280 45,751 19,103
--------- --------- --------- ---------
Total rental revenue 201,006 162,060 765,417 487,577
Development and management services 3,344 3,517 14,708 12,411
Interest and other 797 4,449 6,439 13,859
--------- --------- --------- ---------
Total revenue 205,147 170,026 786,564 513,847-
--------- --------- --------- ---------
Expenses
Operating 64,947 53,303 249,268 150,490
General and administrative 8,110 5,753 29,455 22,504
Interest 53,964 42,934 205,410 124,860
Depreciation and amortization 31,744 24,205 120,059 75,418
--------- --------- --------- ---------
Total expenses 158,765 126,195 604,192 373,272
--------- --------- --------- ---------
Income before minority interests and
joint venture income 46,382 43,831 182,372 140,575
Minority interests in property partnerships (141) (2,163) (4,614) (2,554)
Income (loss) from unconsolidated joint
ventures (180) -- 468 --
--------- --------- --------- ---------
Income before minority interest in Operating
Partnership 46,061 41,668 178,226 138,021
Minority interest in Operating Partnership (16,452) (14,397) (64,917) (39,428)
--------- --------- --------- ---------
Income before gain on sale and extraordinary
item 29,609 27,271 113,309 98,593
Gain on sale of real estate, net of minority
interest 6,417 - 6,467 -
Extraordinary loss, net of minority interest - (9,045) - (5,481)
--------- --------- --------- ---------
Net income before preferred dividend 36,026 18,226 119,776 93,112
Preferred dividend (1,654) - (5,829) -
--------- --------- --------- ---------
Net income available to common shareholders $ 34,372 $ 18,226 $ 113,947 $ 93,112
========= ========= ========= ========
Basic earnings per share:
Income before gain on sale and
extraordinary loss $ 0.41 $ 0.43 $ 1.62 $ 1.62
Gain on sale, net 0.10 - 0.10 -
Extraordinary loss, net - (0.14) - (0.09)
--------- --------- --------- ---------
Net income available to common shareholders $ 0.51 $ 0.29 $ 1.72 $ 1.53
========= ========= ========= ========
Weighted average number of common shares
outstanding 67,906 63,528 66,235 60,776
========= ========= ========= ========
Diluted earnings per share:
Income before gain on sale and extraordinary
loss $ 0.41 $ 0.40 $ 1.61 $ 1.61
Gain on sale, net 0.09 - 0.10 -
Extraordinary loss, net - (0.13) - (0.09)
--------- --------- --------- ---------
Net income available to common shareholders $ 0.50 $ 0.27 $ 1.71 $ 1.52
========= ========= ========= ========
Weighted average number of common and common
equivalent shares outstanding 68,247 68,432 66,776 61,308
========= ========= ========= ========
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
December 31, December 31,
1999 1998
----------------------- ---------------------
(unaudited)
ASSETS
Real estate: $ 5,612,258 $ 4,917,193
Less: accumulated depreciation (470,591) (357,384)
----------- -----------
Total real estate 5,141,667 4,559,809
Cash and cash equivalents 12,035 12,166
Notes receivable - 420,143
Escrows 40,254 19,014
Tenant and other receivables, net 28,362 40,830
Accrued rental income, net 82,228 64,251
Deferred charges, net 50,899 46,029
Prepaid expenses and other assets 42,912 26,058
Investments in joint ventures 36,415 46,787
----------- -----------
Total assets $ 5,434,772 $ 5,235,087
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $ 2,955,584 $ 2,653,581
Notes payable - 420,143
Unsecured line of credit 366,000 15,000
Accounts payable and accrued expenses 66,780 42,897
Dividends payable 50,114 40,494
Accrued interest payable 8,486 7,307
Other liabilities 48,282 27,950
----------- -----------
Total liabilities 3,495,246 3,207,372
----------- -----------
Commitments and contingencies - -
----------- -----------
Minority interests 781,962 1,079,234
----------- -----------
Series A Convertible Redeemable Preferred Stock, liquidation
preference $50.00 per share, 2,000,000 shares issued
and outstanding 100,000 -
----------- -----------
Stockholders' equity:
Excess stock, $.01 par value, 150,000,000 shares
authorized, none issued or outstanding - -
Common stock, $.01 par value, 250,000,000 shares
authorized, 67,910,434 and 63,527,819 issued and
outstanding in 1999 and 1998, respectively 679 635
Additional paid-in capital 1,067,778 955,711
Dividends in excess of earnings (10,893) (7,865)
----------- -----------
Total stockholders' equity 1,057,564 948,481
----------- -----------
Total liabilities and stockholders' equity $ 5,434,772 $ 5,235,087
=========== ===========
BOSTON PROPERTIES, INC.
Funds from Operations
(UNAUDITED AND IN THOUSANDS)
Three months ended December 31, Year ended December 31,
--------------------------------- ----------------------------------
1999 1998 1999 1998
---------------- -------------- --------------- ----------------
Income before minority interests and joint
venture income (loss) $ 46,382 $ 43,831 $ 182,372 $ 140,575
Add:
Real estate depreciation and amortization 31,914 23,930 119,583 74,649
Income (loss) from unconsolidated joint
ventures (180) - 468 -
Less:
Minority property partnership's share
of Funds from Operations 179 3,725 3,681 4,185
Preferred dividends and distributions 8,303 4,325 32,111 5,830
------------ ---------- ----------- ------------
Funds from operations $ 69,634 $ 59,711 $ 266,631 $ 205,209
============ ========== =========== ============
Funds from operations available to common
shareholders $ 51,555 $ 43,607 $ 196,101 $ 153,045
============ ========== =========== ============
Weighted average shares outstanding - basic 67,906 63,528 66,235 60,776
============ ========== =========== ============
Per share - basic $ 0.76 $ 0.69 $ 2.96 $ 2.52
============ ========== =========== ============
Weighted average shares outstanding - diluted 81,249 68,432 79,473 62,443
============ ========== =========== ============
Per share - diluted $ 0.74 $ 0.68 $ 2.89 $ 2.50
============ ========== =========== ============
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
December 31, 1999 December 31, 1998
----------------- -----------------
Greater Boston 96.7% 97.0%
Greater Washington, D.C. 96.4% 98.5%
Midtown Manhattan 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Richmond, VA 98.0% 98.8%
Princeton/East Brunswick, NJ 98.9% 98.7%
Greater San Francisco 96.4% 98.5%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 97.1% 98.4%
===== =====
Occupancy by Type
December 31, 1999 December 31, 1998
----------------- -----------------
Class A Office Portfolio 97.7% 98.8%
R&D Portfolio 93.0% 99.2%
Industrial Portfolio 90.4% 89.3%
---- ----
Total Portfolio 97.1% 98.4%
==== ====