EXHIBIT 99.1
BOSTON PROPERTIES, INC.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDED MARCH 31, 2000
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
INDEX
PAGE
COMPANY BACKGROUND 2
INVESTOR INFORMATION 3-4
FINANCIAL HIGHLIGHTS 5
CONSOLIDATED BALANCE SHEETS 6
CONSOLIDATED INCOME STATEMENTS 7
FUNDS FROM OPERATIONS 8
FINANCIAL RATIOS 9
CAPITAL STRUCTURE 10
DEBT ANALYSIS 11-13
JOINT VENTURES 14
PORTFOLIO OVERVIEW-SQUARE FOOTAGE 15
TOP 20 TENANTS 16
PORTFOLIO OVERVIEW-FFO 17
OCCUPANCY ANALYSIS 18
OFFICE PROPERTIES-LEASE EXPIRATION ROLL OUT 19
R&D PROPERTIES-LEASE EXPIRATION ROLL OUT 20
INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 21
GRAND TOTAL - OFFICE, R&D AND INDUSTRIAL PROPERTIES 22
BOSTON AREA LEASE EXPIRATION ROLL OUT 23
WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 24
SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 25
NEW YORK AREA LEASE EXPIRATION ROLL OUT 26
NEW JERSEY AREA LEASE EXPIRATION ROLL OUT 27
OTHER AREA LEASE EXPIRATION ROLL OUT 28
HOTEL PERFORMANCE 29
SAME PROPERTY PERFORMANCE 30
"IN-SERVICE" PROPERTY PERFORMANCE 31
CAPITAL EXPENDITURES 32
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 33
VALUE CREATION PIPELINE - DEVELOPMENT 34
VALUE CREATION PIPELINE - LAND PARCELS 35
ACQUISITION PROPERTY PROFILES 36-37
1
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
COMPANY BACKGROUND
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 office, industrial and hotel properties. The
Company is one of the largest owners and developers of office properties in the
United States, concentrated in the Northeast Corridor from Virginia to Greater
Boston and in greater San Francisco.
On June 23, 1997, Boston Properties successfully completed its initial public
offering. The offering and the underwriters over-allotment option closed on the
same date resulting in 36,110,000 shares being sold at $25.00 per share for a
total offering of $902,750,000. On January 30,1998, the Company closed a
follow-on offering of 23,000,000 shares (including the underwriters'
over-allotment) at $35.125 per share for a total offering of $807,875,000. On
May 20, 1999, the Company raised an additional $141,002,500, net of issuance
costs, through the issuance of 4,000,000 shares.
Through its predecessor company founded by Mortimer B. Zuckerman and Edward H.
Linde in 1970, the Company grew through the seventies, eighties, and nineties by
developing and redeveloping Class A office properties, R&D and industrial
properties, and hotels in its primary markets of greater Boston, greater
Washington, DC, and midtown Manhattan.
Since the Company's Initial Offering in June 1997, the Company has acquired 47
properties adding approximately 16.0 million square feet to its portfolio,
representing an investment of approximately $3.9 billion. In addition, the
Company is developing twelve Class A Office Buildings for a total anticipated
investment of approximately $1.1 billion. The Company owns or controls land
where it can develop an additional 10.5 million square feet.
2
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
INVESTOR INFORMATION
800 Boylston Street
Boston, MA 02199
(617) 236-3300
(617) 536-5087 (fax)
Mortimer B. Zuckerman Chairman of the Board
Edward H. Linde President, Chief Executive Officer and Director
Robert E. Burke Executive Vice President, Operations
Douglas T. Linde Senior Vice President, Financial and Capital Markets
David G. Gaw Senior Vice President, Chief Financial Officer
Elaine M. Quinlan Director of Investor Relations
TIMING
QUARTERLY RESULTS FOR 2000 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING
ANTICIPATED SCHEDULE:
SECOND QUARTER 2000 WEEK OF JULY 24-28
THIRD QUARTER 2000 WEEK OF OCTOBER 23-27
YEAR END 2000 WEEK OF JANUARY 22-26
3
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
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:
1ST QUARTER 2000 1ST QUARTER 1999
---------------- ----------------
HIGH PRICE $ 32.3750 $ 34.6875
LOW PRICE $ 29.8125 $ 30.3125
CLOSING PRICE $ 31.8125 $ 31.6250
DIVIDENDS PER SHARE - ANNUALIZED $ 1.80 $ 1.70
CLOSING DIVIDEND YIELD - ANNUALIZED 5.66% 5.38%
CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 105,341 100,290
CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $ 3,351,161 $ 3,171,671
4
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
FINANCIAL HIGHLIGHTS
(UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED
------------------------------------------------------------
MARCH 31, 2000 MARCH 31, 1999 % CHANGE
-------------- -------------- --------
INCOME ITEMS:
Revenues $ 210,254 $ 187,640 12.05%
Net Income available to common shareholders $ 30,977 $ 24,934 24.24%
Funds from Operations $ 73,946 $ 62,814 17.72%
Company's share (73.89% and 72.75%) $ 54,641 $ 45,697 19.57%
Funds from Operations per share - basic $ 0.80 $ 0.72 11.81%
Funds from Operations per share - diluted $ 0.78 $ 0.70 11.42%
Dividends per share $ 0.45 $ 0.425 5.88%
RATIOS:
Interest Coverage Ratio 2.53 2.47 2.40%
Dividend Payout Ratio 57.70% 60.71% -4.96%
MARCH 31, 2000 DECEMBER 31, 1999 % CHANGE
-------------- ----------------- --------
CAPITALIZATION:
Total Debt $ 3,530,399 $ 3,321,584 6.29%
Total Common Shares Outstanding @ Quarter End 67,954 67,910 0.06%
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 2,625 0.00%
Total Common Units Outstanding @ Quarter End 24,386 23,810 2.42%
Total Preferred Units Outstanding @ Quarter End
(if converted) 10,376 10,376 0.00%
Price @ Quarter End $ 31.8125 $ 31.1250 2.21%
Equity Value @ Quarter End $ 3,351,161 $ 3,259,441 2.81%
Total Market Capitalization $ 6,881,560 $ 6,581,025 4.57%
Debt/Total Market Capitalization 51.30% 50.47% 1.64%
5
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
CONSOLIDATED BALANCE SHEETS
(UNAUDITED AND IN THOUSANDS)
MARCH 31, 2000 DECEMBER 31, 1999
-------------- ------------------
ASSETS
Real estate and equipment $ 5,316,084 $ 5,150,341
Development in progress 417,429 334,983
Land held for future development 114,628 126,934
Less accumulated depreciation (501,554) (470,591)
----------- -----------
Total real estate and equipment 5,346,587 5,141,667
Cash 18,335 12,035
Escrows 30,085 40,254
Investments in securities 73,023 14,460
Tenant and other receivables 34,539 28,362
Accrued rental income 85,089 82,228
Deferred charges, net 67,711 50,899
Prepaid expenses and other assets 24,407 28,452
Investment in joint ventures 36,541 36,415
----------- -----------
TOTAL ASSETS $ 5,716,317 $ 5,434,772
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $ 3,186,399 $ 2,955,584
Unsecured line of credit 344,000 366,000
Accounts payable and accrued expenses 57,098 66,780
Dividends payable 51,205 50,114
Accrued interest payable 5,154 8,486
Other liabilities 55,553 48,282
----------- -----------
Total liabilities 3,699,409 3,495,246
----------- -----------
Commitments and contingencies - -
----------- -----------
Minority interests 808,826 781,962
----------- -----------
Series A Convertible Redeemable Preferred Stock, liquidation preference
$50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000
----------- -----------
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,
67,954,225 and 67,910,434 issued and outstanding, respectively 680 679
Additional paid-in capital 1,060,341 1,067,778
Dividend in excess of earnings (10,495) (10,893)
Deferred compensation (1,007) -
Accumulated other comprehensive income 58,563 -
----------- -----------
Total stockholders' equity 1,108,082 1,057,564
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,716,317 $ 5,434,772
=========== ===========
6
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED
----------------------------------------
31-MAR-00 31-MAR-99 % CHANGE
--------- --------- --------
Revenue:
Rental
Base Rent (1) $ 170,337 $151,609 12.35%
Recoveries from tenants 23,336 17,414 34.01%
Parking and other 13,008 10,924 19.08%
--------- -------- -----
Total rental revenue 206,681 179,947 14.86%
Development and management services 2,863 4,047 -29.26%
Interest and other 710 3,646 -80.53%
--------- -------- -----
Total revenue 210,254 187,640 12.05%
--------- -------- -----
Expenses:
Rental expenses 65,177 57,350 13.65%
General and administrative 7,408 6,610 12.07%
Interest (2) 55,215 50,459 9.43%
Depreciation and amortization 32,231 27,794 15.96%
--------- -------- -----
Total expenses 160,031 142,213 12.53%
--------- -------- -----
Income before minority interests and before income from unconsolidated joint ventures 50,223 45,427 10.56%
Minority interest in property partnerships (196) (4,155) -95.28%
Income from unconsolidated joint ventures 145 213 -31.92%
--------- -------- -----
Income before preferred distribution and minority interest in Operating Partnership 50,172 41,485 20.94%
Preferred distribution (6,607) (6,373) 3.67%
Minority interest in Operating Partnership (3) (10,945) (9,339) 17.20%
--------- -------- -----
Net income before preferred dividend 32,620 25,773 26.57%
Preferred dividend (1,643) (839) 95.83%
--------- -------- -----
Net income available to common shareholders $ 30,977 $ 24,934 24.24%
========= ======== =====
INCOME PER SHARE OF COMMON STOCK
Net income available to common shareholders per share - basic $ 0.46 $ 0.39 17.95%
========= ======== =====
Net income available to common shareholders per share - diluted $ 0.45 $ 0.39 15.38%
========= ======== =====
(1) Base Rent is reported on a straight-line basis over the terms of the
respective leases. The impact of the straight-line rent adjustment
increased revenues by $2,841 and $4,264 for the three months ended March
31, 2000 and 1999, respectively.
(2) Excludes capitalized interest of $8,464 and $2,985 for the three months
ended March 31, 2000 and 1999, respectively.
(3) Equals minority interest percent (26.11% and 27.25%, respectively) of
income before minority interest in Operating Partnership after deduction
for preferred dividends and distributions.
7
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
--------------------------------------------
31-MAR-00 31-MAR-99 % CHANGE
--------- --------- --------
Income from operations before minority interests and before income from $ 50,223 $ 45,427 10.56%
unconsolidated joint ventures
Add:
Real estate depreciation and amortization (1) 32,052 27,549 16.35%
Income from unconsolidated joint ventures 145 213 -31.92%
Less:
Minority property partnerships' share of funds from operations 224 3,163 -92.92%
Preferred dividends and distributions 8,250 7,212 14.39%
-------- -------- ------
Funds from Operations $ 73,946 $ 62,814 17.72%
======== ======== ======
Funds from Operations available to common shareholders (2) $ 54,641 $ 45,697 19.57%
======== ======== ======
Funds from Operations per share - basic $ 0.80 $ 0.72 11.81%
======== ======== ======
Weighted average shares outstanding - basic 67,943 63,534 6.94%
======== ======== ======
Funds from Operations per share - diluted $ 0.78 $ 0.70 11.43%
======== ======== ======
Weighted average shares outstanding - diluted 81,381 75,862 7.28%
======== ======== ======
(1) Real estate depreciation includes the Company's share of joint venture real
estate depreciation of $259 and $0, less corporate related depreciation of
$438 and $245, for the three months ended March 31, 2000 and 1999,
respectively.
(2) Based on weighted average shares for the quarter. Company's share for the
quarter ended March 31, 2000 was 73.89% and 72.75% for the quarter ended
March 31, 1999.
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
For the Three Months Ended March 31, 2000 For the Three Months Ended March 31, 1999
----------------------------------------- --------------------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
Basic Funds from Operations $ 73,946 91,948 $ 0.80 $ 62,814 87,330 $ 0.72
Effect of Dilutive Securities
Convertible Preferred Units 6,607 10,376 (0.01) 6,373 10,325 (0.01)
Convertible Preferred Stock 1,643 2,625 - 839 1,458 -
Stock Options - 438 (0.01) - 545 (0.01)
-------- ------- ------- -------- ------ ------
Dilutive Funds from Operations (1) $ 82,196 105,387 $ 0.78 $ 70,026 99,658 $ 0.70
======== ======= ======= ======== ====== ======
Company's share of Diluted Funds
from Operations $ 63,473 81,381 $ 0.78 $ 53,306 75,862 $ 0.70
======== ======= ======= ======== ====== ======
(1) Based on weighted average diluted shares for the quarter. Company's share
for the quarter ended March 31, 2000 was 77.22% and 76.12% for the quarter
ended March 31, 1999.
8
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
FINANCIAL RATIOS
THREE MONTHS ENDED
MARCH 31, 2000
------------------
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1)(2)
Debt Service Coverage Ratio 2.25
(EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal)
Interest Coverage Ratio 2.53
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Return on Shareholder's Equity 16.52%
(EBITDA - Interest)/Average Equity (book value) (%)
Return on Real Estate Investments 10.40%
(EBITDA/Average Real Estate Investments (book value)) (%)
FFO Payout Ratio 57.70%
(Dividends Declared/FFO) (%)
(1) EBITDA is equal to earnings before interest, taxes, depreciation and
amortization.
(2) FFO is calculated based on the NAREIT White Paper.
9
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
CAPITAL STRUCTURE
DEBT
(in thousands)
AGGREGATE PRINCIPAL
MARCH 31, 2000
--------------
Mortgage Loans $ 3,186,399
Unsecured Line of Credit 344,000
------------
Total Debt $ 3,530,399
============
EQUITY
(in thousands)
COMMON
SHARES & UNITS STOCK $ VALUE
OUTSTANDING EQUIVALENTS EQUIVALENT (1)
----------- ----------- --------------
Common Stock 67,954 67,954 $ 2,161,787
Preferred Stock 2,000 2,625 83,508
Operating Partnership Units 24,386 24,386 775,780
Preferred Operating Partnership Units 8,713 10,376 330,087
------ -----------
Total Equity 105,341 $ 3,351,161
======= ===========
Total Market Capitalization $ 6,881,560
===========
(1) Value based on March 31, 2000 closing price of $31.8125.
10
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
YEAR 2000 2001 2002 2003 2004 THEREAFTER TOTAL
---- ---- ---- ---- ---- ---- ---------- -----
Amount $ 259,955 $ 158,784 $ 444,983 $696,767 $124,593 $ 1,845,317 $ 3,530,399
UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003
(IN THOUSANDS)
OUTSTANDING LETTERS OF REMAINING
FACILITY @ 3/31/2000 CREDIT CAPACITY
- -------- ----------- ------ --------
$ 500,000 0 344,000 32,542 $123,458
UNSECURED AND SECURED DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ --------
Unsecured Debt 9.74% 7.64% 3.0 years
Secured Debt 90.26% 7.03% 5.7 years
------ ---- ---------
Total Debt 100.00% 7.09% 5.5 years
====== ==== =========
FLOATING AND FIXED RATE DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Floating Rate Debt 18.14% 7.77% 2.4 years
Fixed Rate Debt 81.86% 7.06% 6.1 years
------ ---- ---------
Total Debt 100.00% 7.09% 5.5 years
====== ==== =========
11
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL
- ------------------------------ --------- -------- -------- -------- ------- ---------- --------
The Unsecured Line of Credit $ - $ - $ - $344,000 $ - $ - $344,000
Prudential Center 2,590 3,777 4,039 4,319 4,564 275,253 294,542
599 Lexington Avenue - - - - - 225,000 225,000
280 Park Avenue 2,933 8,800 208,267 - - - 220,000
Embarcadero Center One 1,392 1,968 2,104 2,249 2,404 147,713 157,830
Embarcadero Center Two 1,392 1,968 2,104 2,249 2,404 147,713 157,830
Embarcadero Center Four 1,804 2,894 3,097 3,314 3,546 141,916 156,571
875 Third Avenue 1,938 2,341 148,454 - - - 152,733
Embarcadero Center Three 1,227 1,941 2,069 2,206 2,351 137,903 147,697
5 Times Square - - - 137,170 - - 137,170
Two Independence Square 1,465 1,032 1,500 113,845 - - 117,842
Riverfront Plaza 1,699 2,397 2,560 2,735 2,921 105,034 117,346
Democracy Center 1,119 1,588 1,703 1,828 1,961 100,510 108,709
Metropolitan Square 104,528 - - - - - 104,528
Embarcadero Center West Tower 803 1,272 1,358 1,449 1,546 92,065 98,493
100 East Pratt Street 1,142 1,615 1,727 1,847 1,975 84,687 92,993
Reservoir Place 1,312 1,978 2,669 2,859 3,062 63,345 75,225
One Independence Square 1,003 74,114 - - - - 75,117
The Gateway 75,000 - - - - - 75,000
One & Two Reston Overlook 442 705 759 818 65,907 - 68,631
2300 N Street - - - 66,000 - - 66,000
Capital Gallery 766 1,097 1,191 1,293 1,404 52,176 57,927
504,506,508 Carnegie Center 530 845 910 978 1,054 44,585 48,902
10 and 20 Burlington Mall Road - 37,000 - - - - 37,000
1301 New York Avenue 641 1,046 1,129 1,403 1,314 27,823 33,356
(1) For the period from April 1, 2000 through December 31, 2000.
12
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL
- ------------------------------ -------- -------- -------- -------- -------- ---------- ----------
Eight Cambridge Center 292 442 477 515 567 26,429 28,722
510 Carnegie Center 326 475 511 550 587 25,536 27,985
Lockheed Martin Building 367 529 565 604 640 23,956 26,661
University Place 404 573 615 659 706 22,700 25,657
Reston Corporate Center 351 506 540 577 1,620 21,571 25,165
111 Huntington Avenue - - 24,663 - - - 24,663
191 Spring Street 240 344 374 407 443 21,256 23,064
Bedford Business Park 372 539 587 639 695 19,260 22,092
NIMA Building 305 438 468 499 529 19,565 21,804
Sumner Square - - - - 21,624 - 21,624
212 Carnegie Center 20,548 - - - - - 20,548
202 Carnegie Center 19,106 - - - - - 19,106
Orbital Sciences - - 15,659 - - - 15,659
New Dominion Technology Park - - 14,197 - - - 14,197
214 Carnegie Center 13,269 - - - - - 13,269
101 Carnegie Center 187 299 322 348 345 7,058 8,559
Montvale Center 94 135 147 160 175 6,937 7,648
Newport Office Park 227 5,923 - - - - 6,150
Hilltop Business Center 116 164 176 188 201 5,009 5,854
302 Carnegie Center - - - 1,014 - - 1,014
201 Carnegie Center 25 39 42 45 48 317 516
-------- -------- -------- -------- -------- ---------- ----------
$259,955 $158,784 $444,983 $696,767 $124,593 $1,845,317 $3,530,399
======== ======== ======== ======== ======== ========== ==========
For the period from April 1, 2000 through December 31, 2000.
13
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
JOINT VENTURES
(UNAUDITED AND IN THOUSANDS)
AS OF MARCH 31, 2000
ONE MARKET
FREEDOM SQUARE
SQUARE NORTH (2) COMBINED
------- --------- --------
Total Equity (1) $ 5,644 $ 30,897 $ 36,541
======= ======== ========
Mortgage/Construction loans payable (1) $13,179 $ 27,425 $ 40,604
======= ======== ========
BXP's ownership percentage 25.00% 50.00%
======= ========
(1) Represents the Company's share.
(2) Includes the residential component of the joint venture.
RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES
FOR THE THREE MONTHS ENDED MARCH 31, 2000
ONE MARKET ONE AND TWO
FREEDOM SQUARE RESTON
SQUARE NORTH OVERLOOK (1) COMBINED
--------------- ------------- ------------- ------------
REVENUE
Total rental revenue $ 2,444 $ 1,134 $ 385 $ 3,963
Interest and other - 19 - 19
------- ------- ----- -------
Total revenue 2,444 1,153 385 3,982
------- ------- ----- -------
EXPENSES
Operating 820 548 85 1,453
Interest 672 374 152 1,198
Depreciation and amortization 575 174 82 831
------- ------- ----- -------
Total expenses 2,067 1,096 319 3,482
------- ------- ----- -------
Net income $ 377 $ 57 $ 66 $ 500
======= ======= ===== =======
(1) Represents the operations for the period from January 1, 2000 through
January 11, 2000, prior to the Company's acquisition of their joint venture
partner's 75% interest.
14
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
PORTFOLIO OVERVIEW- SQUARE FOOTAGE
RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY
GEOGRAPHIC AREA OFFICE (1) R&D INDUSTRIAL TOTAL % OF TOTAL
--------------- ---------- --- ---------- ----- ----------
Greater Boston 5,422,542 545,206 247,318 6,215,066 24.31%
Greater Washington, D.C. 5,486,054(2) 1,382,925 237,195 7,106,174 27.79%
Greater San Francisco 4,439,355 144,366 280,213 4,863,934 19.02%
Midtown Manhattan 2,875,966 - - 2,875,966 11.25%
Princeton/East Brunswick, NJ 2,279,865 - - 2,279,865 8.92%
Baltimore, MD 1,175,488 - - 1,175,488 4.60%
Richmond, VA 892,094 - - 892,094 3.49%
Bucks County, PA - - 161,000 161,000 0.63%
---------- --------- ------- --------- ------
22,571,364 2,072,497 925,726 25,569,587 100.00%
========== ========= ======= ========== ======
% of Total 88.27% 8.11% 3.62% 100.00%
(1) Includes retail square footage of approximately 1,000,000.
(2) Includes 414,296 square feet at One Freedom Square which is 25% owned by
Boston Properties.
HOTEL PROPERTIES
NUMBER OF SQUARE
HOTEL PROPERTIES ROOMS 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
============ ===========
GARAGE PROPERTY AND STRUCTURED PARKING
NUMBER OF SQUARE
SPACES FEET
------------ -----------
GARAGE PROPERTIES
Cambridge Center North Garage 1,170 332,442
STRUCTURED PARKING 15,556 5,518,779
------------ -----------
TOTAL GARAGE PROPERTY AND STRUCTURED PARKING 16,726 5,851,221
============ ===========
15
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
TOP 20 TENANTS BY SQUARE FEET LEASED
TENANT SQ. FT. % OF PORTFOLIO
---------------------------------------------- ------------------- --------------
1 General Services Administration 1,973,603 7.7%
2 Lockheed Martin Corporation 716,653 2.8%
3 Gillette Company 492,000 1.9%
4 Raytheon 485,000 1.8%
5 Shearman & Sterling 427,707 1.7%
6 AT&T 420,006 1.6%
7 Marsh & McLennan, Inc. 369,558 1.4%
8 TRW 337,187 1.3%
9 Covance, Inc. 321,261 1.3%
10 Hunton & Williams 311,299 1.2%
11 Debevoise & Plimpton 307,125 1.2%
12 T. Rowe Price Associates, Inc. 270,942 1.1%
13 First Union 254,214 1.0%
14 Andersen Consulting 248,620 1.0%
15 Bankers Trust 243,722 0.9%
16 John Hancock Advisors 233,516 0.9%
17 Parexel International Corp. 228,903 0.9%
18 Orrick, Herrington & Sutcliffe 216,300 0.8%
19 National Football League 205,145 0.8%
20 Shaw Pittman Potts & Trowbridge 204,154 0.8%
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
TENANT SQ. FT.
- ---------------------------------------------- -------------------
Ernst & Young, LLP 1,062,203
16
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
PORTFOLIO OVERVIEW - FFO
PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS* FOR IN-SERVICE PROPERTIES BY
LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED MARCH 31, 2000
GEOGRAPHIC AREA OFFICE (1) R&D INDUSTRIAL HOTEL GARAGE TOTAL
--------------- --------- --- ---------- ----- ------ -----
Greater Boston 17.1% 0.8% 0.2% 3.8% 0.3% 22.2%
Greater Washington, D.C. 22.8% 2.8% 0.2% n/a n/a 25.8%
Greater San Francisco 20.8% 0.3% 0.2% n/a n/a 21.3%
Midtown Manhattan 16.8% n/a n/a n/a n/a 16.8%
Baltimore, MD 3.9% n/a n/a n/a n/a 3.9%
Richmond, VA 3.0% n/a n/a n/a n/a 3.0%
Princeton/East Brunswick, NJ 6.9% n/a n/a n/a n/a 6.9%
Bucks County, PA n/a n/a 0.1% n/a n/a 0.1%
--------- ------- -------- -------- -------- --------
Total 91.3% 3.9% 0.7% 3.8% 0.3% 100.0%
========= ======= ======== ======== ======== ========
(1) Includes Retail Center FFO (Prudential Center Boston and Embarcadero
Center).
* For this table, Property Funds from Operations is equal to GAAP basis
property NOI which includes the effect of straight-line rent and excludes
any deduction for interest expense.
17
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
OCCUPANCY ANALYSIS
SAME PROPERTY OCCUPANCY - BY LOCATION
LOCATION 31-MAR-00 31-MAR-99
- -------- --------- ---------
Greater Boston, MA 99.0% 98.4%
Greater Washington, D.C. 97.0% 98.5%
Midtown Manhattan, NY 100.0% 99.9%
Baltimore, MD 99.3% 100.0%
Princeton/East Brunswick, NJ 99.6% 99.5%
Richmond, VA 99.7% 99.1%
Greater San Francisco, CA 99.1% 96.5%
Bucks County, PA 100.0% 100.0%
------------- -------------
Total Portfolio 98.7% 98.4%
============= =============
SAME PROPERTY - BY TYPE OF PROPERTY
31-MAR-00 31-MAR-99
--------- ---------
Total Office Portfolio 99.5% 98.8%
Total R&D Portfolio 94.0% 99.1%
Total Industrial Portfolio 92.5% 89.3%
------------- -------------
Total Portfolio 98.7% 98.4%
============= =============
18
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE OFFICE PROPERTIES
LEASE EXPIRATIONS
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING
- ---------- ----------------- --------------- -------------------- --------------------
2000 960,200 $ 27,340,642 $ 27,344,939 5.55%
2001 2,266,364 69,079,420 69,534,189 10.97%
2002 2,073,891 80,185,076 80,878,369 9.90%
2003 1,826,513 56,354,940 57,743,122 8.29%
2004 2,582,784 87,609,676 91,350,786 11.68%
2005 1,722,555 50,446,124 54,128,258 6.64%
2006 2,723,204 88,695,125 97,052,358 12.25%
2007 1,652,453 67,381,684 69,039,788 7.37%
2008 872,797 30,412,206 28,455,992 4.03%
2009 1,720,115 55,628,093 63,663,808 8.25%
Thereafter 3,724,851 113,688,281 136,408,677 15.07%
OCCUPANCY BY LOCATION
31-MAR-00 31-MAR-99
--------- ---------
Greater Boston, MA 99.2% 98.5%
Greater Washington, D.C. 98.4% 98.5%
Midtown Manhattan, NY 100.0% 99.9%
Baltimore, MD 99.3% 100.0%
Richmond, VA 99.7% 99.1%
Princeton/East Brunswick, NJ 99.7% 99.5%
Greater San Francisco, CA 98.9% 96.7%
Bucks County, PA n/a n/a
--------- ---------
Total Office Portfolio 99.1% 98.5%
========= =========
19
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE R&D PROPERTIES
LEASE EXPIRATIONS
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
EAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING
- ---------- ----------------- --------------- -------------------- --------------------
2000 255,262 $ 2,691,224 $ 2,691,224 13.12%
2001 287,074 3,561,337 3,609,481 14.76%
2002 352,246 4,926,617 5,060,689 18.11%
2003 95,307 1,183,957 1,259,539 4.90%
2004 84,881 1,184,285 1,311,777 4.36%
2005 164,149 1,948,603 2,108,130 8.44%
2006 203,000 2,283,339 2,395,839 10.44%
2007 157,895 2,758,770 3,004,946 8.12%
2008 - - - 0.00%
2009 59,838 770,707 981,557 3.08%
Thereafter 285,371 4,896,006 5,841,712 14.67%
OCCUPANCY BY LOCATION
31-MAR-00 31-MAR-99
--------- ---------
Greater Boston, MA 100.0% 100.0%
Greater Washington, D.C. 91.2% 98.8%
Midtown Manhattan, NY n/a n/a
Baltimore, MD n/a n/a
Richmond, VA n/a n/a
Princeton/East Brunswick, NJ n/a n/a
Greater San Francisco, CA 97.6% 99.0%
Bucks County, PA n/a n/a
------- -------
Total R&D Portfolio 94.0% 99.1%
======= =======
20
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE INDUSTRIAL PROPERTIES
LEASE EXPIRATIONS
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING
---------- ----------------- --------------- -------------------- --------------------
2000 255,405 $ 1,424,211 $ 1,424,211 29.82%
2001 70,829 381,905 381,905 8.27%
2002 23,904 207,563 207,563 2.79%
2003 147,305 989,907 1,053,959 17.20%
2004 235,076 1,363,056 1,456,556 27.44%
2005 20,500 125,698 140,832 2.39%
2006 - - - 0.00%
2007 20,000 222,456 258,783 2.33%
2008 83,608 736,586 809,782 9.76%
2009 - - - 0.00%
Thereafter - - - 0.00%
OCCUPANCY BY LOCATION
31-MAR-00 31-MAR-99
--------- ---------
Greater Boston, MA 93.0% 93.0%
Greater Washington, D.C. 78.2% 73.9%
Midtown Manhattan, NY n/a n/a
Baltimore, MD n/a n/a
Richmond, VA n/a n/a
Princeton/East Brunswick, NJ n/a n/a
Greater San Francisco, CA 100.0% 92.9%
Bucks County, PA 100.0% 100.0%
------- -------
Total Industrial Portfolio 92.5% 89.3%
======= =======
21
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
LEASE EXPIRATION
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES PERCENTAGE OF TOTAL
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS SQUARE FEET EXPIRING
---------- ----------------- --------------- -------------------- --------------------
2000 1,470,867 $ 31,456,077 $ 31,460,374 5.90%
2001 2,624,267 73,022,662 73,525,575 10.53%
2002 2,450,041 85,319,256 86,146,621 9.83%
2003 2,069,125 58,528,804 60,056,620 8.30%
2004 2,902,741 90,157,017 94,119,119 11.64%
2005 1,907,204 52,520,425 56,377,220 7.65%
2006 2,926,204 90,978,464 99,448,197 11.74%
2007 1,830,348 70,362,910 72,303,517 7.34%
2008 956,405 31,148,792 29,265,774 3.84%
2009 1,779,953 56,398,800 64,645,365 7.14%
Thereafter 4,010,222 118,584,287 142,250,389 16.09%
OCCUPANCY BY LOCATION
31-MAR-00 31-MAR-99
--------- ---------
Greater Boston, MA 99.0% 98.4%
Greater Washington, D.C. 96.3% 97.7%
Midtown Manhattan, NY 100.0% 99.9%
Baltimore, MD 99.3% 100.0%
Richmond, VA 99.7% 99.1%
Princeton/East Brunswick, NJ 99.7% 99.5%
Greater San Francisco, CA 99.0% 96.5%
Bucks County, PA 100.0% 100.0%
-------- --------
Total Portfolio 98.5% 98.2%
======== ========
22
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
GREATER BOSTON
OFFICE
-----------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ---------------- --------------- --------------------
2000 317,779 $ 8,999,934 $ 8,999,934
2001 711,307 18,087,072 18,363,126
2002 403,250 10,808,348 10,882,128
2003 560,130 14,877,308 15,505,549
2004 756,296 26,274,690 28,573,681
2005 613,078 17,839,888 18,444,436
2006 452,640 13,699,199 15,440,853
2007 159,431 5,057,924 5,644,368
2008 5,466 404,977 404,977
2009 846,776 26,345,748 30,339,370
Thereafter 486,825 10,136,550 13,963,559
R&D
------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 80,000 $ 859,790 $ 859,790
2001 - - -
2002 94,140 877,197 892,197
2003 50,704 581,128 581,128
2004 - - -
2005 - - -
2006 203,000 2,283,339 2,395,839
2007 50,000 475,008 675,000
2008 - - -
2009 - - -
Thereafter 67,362 1,295,391 1,601,888
INDUSTRIAL
----------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------- --------------- --------------------
2000 67,216 $ 639,711 $ 639,711
2001 10,829 127,969 127,969
2002 23,904 207,563 207,563
2003 128,105 861,075 925,127
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
23
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE GREATER WASHINGTON DC PROPERTIES
LEASE EXPIRATIONS
GREATER WASHINGTON
OFFICE
-----------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ --------------- --------------------
2000 196,310 $ 5,764,195 $ 5,768,492
2001 251,062 7,326,349 7,422,184
2002 241,016 6,444,055 6,756,672
2003 174,564 4,630,544 4,919,122
2004 532,422 17,239,633 18,153,128
2005 339,389 10,513,004 11,943,418
2006 775,418 30,662,583 33,298,107
2007 540,306 19,219,293 16,470,563
2008 371,451 15,014,727 11,647,965
2009 429,596 14,487,052 17,009,560
Thereafter 1,516,601 45,313,605 52,283,790
R&D
----------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 151,062 $ 1,613,506 $ 1,613,506
2001 252,377 3,136,871 3,177,668
2002 215,620 3,526,884 3,624,298
2003 23,439 295,229 347,548
2004 84,881 1,184,285 1,311,777
2005 148,330 1,772,104 1,881,250
2006 - - -
2007 107,895 2,283,762 2,329,946
2008 - - -
2009 59,838 770,707 981,557
Thereafter 218,009 3,600,615 4,239,824
INDUSTRIAL
---------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ----------------- --------------- --------------------
2000 27,189 $ 172,700 $ 172,700
2001 - - -
2002 - - -
2003 19,200 128,832 128,832
2004 34,863 228,725 245,374
2005 20,500 125,698 140,832
2006 - - -
2007 - - -
2008 83,608 736,586 809,782
2009 - - -
Thereafter - - -
24
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
LEASE EXPIRATIONS
GREATER SAN FRANCISCO
OFFICE
------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ ------------------ --------------------
2000 134,270 $ 3,790,904 $ 3,790,904
2001 596,051 21,236,487 21,269,847
2002 317,687 10,887,861 11,008,356
2003 588,506 22,384,350 22,588,714
2004 753,119 30,360,479 30,614,710
2005 271,774 9,788,245 10,298,771
2006 750,087 24,711,142 26,719,310
2007 336,188 12,224,079 12,953,138
2008 173,286 6,418,848 6,450,560
2009 271,610 10,179,704 10,627,356
Thereafter 100,621 4,990,191 5,362,225
R&D
------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ ------------------ --------------------
2000 24,200 $ 217,928 $ 217,928
2001 34,697 424,465 431,813
2002 42,486 522,535 544,194
2003 21,164 307,531 330,863
2004 - - -
2005 15,819 176,499 226,880
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
INDUSTRIAL
------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ ------------------ --------------------
2000 - $ - $ -
2001 60,000 253,936 253,936
2002 - - -
2003 - - -
2004 200,213 1,134,331 1,211,182
2005 - - -
2006 - - -
2007 20,000 222,456 258,783
2008 - - -
2009 - - -
Thereafter - - -
25
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE NEW YORK PROPERTIES
LEASE EXPIRATIONS
MID-TOWN MANHATTAN
OFFICE
----------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 20,947 $ 1,274,083 $ 1,274,083
2001 129,091 6,882,407 6,902,469
2002 900,104 47,158,597 47,271,041
2003 191,631 7,497,312 7,547,672
2004 16,525 895,043 959,076
2005 55,239 2,513,033 2,690,599
2006 25,440 1,071,777 1,175,591
2007 561,948 28,985,091 31,974,155
2008 118,081 5,037,421 5,572,477
2009 39,381 2,250,721 2,595,288
Thereafter 782,338 34,651,743 43,471,137
R&D
-------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ----------------- ------------------ --------------------
2000 - $ - $ -
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
INDUSTRIAL
--------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ----------------- ------------------ --------------------
2000 - $ - $ -
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
26
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE NEW JERSEY PROPERTIES
LEASE EXPIRATIONS
GREATER NEW JERSEY
OFFICE
------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 257,849 $ 6,744,790 $ 6,744,790
2001 422,977 12,014,688 12,016,045
2002 30,959 861,177 847,347
2003 127,634 3,241,417 3,296,203
2004 404,428 10,384,131 10,395,684
2005 123,850 2,708,123 3,087,129
2006 40,381 1,101,122 1,184,124
2007 12,171 365,130 377,301
2008 15,243 407,780 445,887
2009 14,515 371,040 426,065
Thereafter 824,909 18,454,462 21,186,237
R&D
--------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 - $ - $ -
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
INDUSTRIAL
-------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ---------- ------------------ ------------------ --------------------
2000 - $ - $ -
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
27
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
IN-SERVICE OTHER PROPERTIES
LEASE EXPIRATIONS
OTHER PROPERTIES (RICHMOND VA, BALTIMORE MD, BUCKS COUNTY, PA)
OFFICE
---------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ --------------- --------------------
2000 33,045 $ 766,735 $ 766,735
2001 155,876 3,532,417 3,560,519
2002 180,875 4,025,038 4,112,825
2003 184,048 3,724,009 3,885,863
2004 119,994 2,455,700 2,654,508
2005 319,495 7,083,831 7,663,905
2006 679,238 17,449,302 19,234,373
2007 42,409 1,530,167 1,620,245
2008 189,270 3,128,454 3,934,126
2009 118,237 1,993,827 2,666,169
Thereafter 13,557 141,729 141,729
R&D
--------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ ------------------ --------------------
2000 - $ - $ -
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
INDUSTRIAL
-------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES
EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS
- ------------- ------------------ ------------------ --------------------
2000 161,000 $ 611,800 $ 611,800
2001 - - -
2002 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
Thereafter - - -
28
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
LONG WHARF MARRIOTT - BOSTON
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 86.80% 85.60% 1.4% 86.80% 85.60% 1.4%
Average Daily Rate $ 200.95 $ 189.10 6.3% $ 200.95 $ 189.10 6.3%
REVPAR $ 174.42 $ 161.79 7.8% $ 174.42 $ 161.79 7.8%
CAMBRIDGE CENTER MARRIOTT
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 81.40% 82.80% -1.7% 81.40% 82.80% -1.7%
Average Daily Rate $ 174.05 $ 158.79 9.6% $ 174.05 $ 158.79 9.6%
REVPAR $ 141.68 $ 131.48 7.8% $ 141.68 $ 131.48 7.8%
TOTAL SAME PROPERTY HOTEL PERFORMANCE
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 84.00% 84.20% -0.2% 84.00% 84.20% -0.2%
Average Daily Rate $ 187.03 $ 173.37 7.9% $ 187.03 $ 173.37 7.9%
REVPAR $ 157.48 $ 146.11 7.8% $ 157.48 $ 146.11 7.8%
1999 PLACED-IN-SERVICE HOTEL
RESIDENCE INN BY MARRIOTT
FIRST QUARTER FIRST QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 88.70% 67.40% N/A 88.70% 64.70% N/A
Average Daily Rate $ 144.00 $ 134.18 N/A $ 144.00 $ 134.18 N/A
REVPAR $ 127.73 $ 90.44 N/A $ 127.73 $ 90.44 N/A
* Only Operational as of 2/01/99
29
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
SAME PROPERTY PERFORMANCE
OFFICE, R&D, INDUSTRIAL AND HOTEL PROPERTIES
OFFICE R&D INDUSTRIAL HOTEL GARAGE TOTAL
------ --- ---------- ----- ------ -----
Number of Properties 71 32 9 2 1 115
Square feet 19,332,388 2,072,497 925,726 750,400 332,442 23,413,453
Percent of in-service properties 85.7% 100.0% 100.0% 80.0% 100% 87.2%
Occupancy @ 03/31/99 98.8% 99.1% 89.3% - - 98.4%
Occupancy @ 03/31/00 99.5% 94.0% 92.5% - - 98.7%
Percent change from 1st quarter 2000
over 1st quarter 1999:
Revenue 5.3% 2.5% 12.5% 14.0% 28.7% 5.6%
Expense 5.7% -7.0% 16.1% 4.5% 10.7% 5.4%
Net Operating Income 5.1% 5.5% 11.2% 16.8% 38.9% 5.6%
SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED MARCH 31, 2000
OFFICE R&D INDUSTRIAL TOTAL
------ --- ---------- -----
Vacant space available @ 1/01/00 (sf) 360,902 144,545 89,099 594,546
Square footage of leases expiring or
terminated 01/01/00-03/31/00 1,012,850 235,859 - 1,248,709
--------- -------- ------- ---------
Total space for lease (sf) 1,373,752 380,404 89,099 1,843,255
========= ======== ======= =========
New tenants (sf) 772,603 167,459 20,000 960,062
Renewals (sf) 509,930 87,971 - 597,901
--------- ------- ------- ---------
Total space leased (sf) 1,282,533 255,430 20,000 1,557,963
========= ======== ======= =========
Space available @ 3/31/00 (sf) 91,219 124,974 69,099 285,292
========= ======== ======= =========
Net increase (decrease) in leased space (sf) 269,683 19,571 20,000 309,254
Average lease term (months) 93 47 74 85
2nd generation TI/Comm PSF $ 12.12 $ 0.71 $ 11.04 $ 10.23
Increase in 2nd generation net rents (1) 50.6% 6.3% n/a 46.9%
(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.)
30
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED MARCH 31,2000
OFFICE R&D INDUSTRIAL TOTAL
------ --- ---------- -----
Vacant space available @ 1/01/00 (sf) 508,964 144,545 89,099 742,608
Square footage of leases expiring or
terminated 1/01/00-3/31/00 1,070,356 235,859 - 1,306,215
------------ ------------- ------------ ------------
Total space for lease (sf) 1,579,320 380,404 89,099 2,048,823
============ ============= ============ ============
New tenants (sf) 852,455 167,459 20,000 1,039,914
Renewals (sf) 532,149 87,971 - 620,120
------------ ------------- ------------ ------------
Total space leased (sf) 1,384,604 255,430 20,000 1,660,034
============ ============= ============ ============
Space available @ 3/31/00 (sf) 194,716 124,974 69,099 388,789
============ ============= ============ ============
Net increase/(decrease) in leased space (sf) 314,248 19,571 20,000 353,819
Average lease term (months) 92 47 74 78
2nd generation TI/Comm PSF $ 12.38 $ 0.71 $ 11.04 $ 10.57
Increase in 2nd generation net rents (1) 52.2% 6.3% n/a 48.4%
(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).
31
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
(IN THOUSANDS)
HISTORICAL CAPITAL EXPENDITURES
1995 1996 1997 1998 1999 Q1 2000
---- ---- ---- ---- ---- -------
Recurring capital expenditures $ 1,618 $ 1,083 $ 1,125 $ 3,543 $ 11,611 $ 1,995
============ =========== ============ ========== ============ ============
Hotel improvements, equipment upgrades $ 4,420 $ 3,041 $ 2,625 $ 3,872 $ 2,346 $ 789
============ =========== ============ ========== ============ ============
and replacements
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
1995 1996 1997 1998 1999 Q1 2000
---- ---- ---- ---- ---- -------
Office
Square feet 768,459 970,072 1,016,427 648,291 2,115,281 1,384,604
------- ------- --------- ------- --------- ---------
Tenant improvement and lease commissions p.s.f. $ 10.66 $ 11.40 $ 10.83 $ 9.82 $ 10.60 $ 12.38
------- ------- --------- ------- --------- ---------
R&D
Square feet 177,073 337,676 169,878 113,428 167,231 255,430
------- ------- --------- ------- --------- ---------
Tenant improvement and lease commissions p.s.f. $ 6.99 $ 10.45 $ 2.22 $ 3.32 $ 1.94 $ 0.71
------- ------- --------- ------- --------- ---------
Industrial
Square feet 308,388 128,148 258,795 320,608 163,962 20,000
------- ------- --------- ------- --------- ---------
Tenant improvement and lease commissions p.s.f. $ 1.00 $ 1.71 $ 0.99 $ 1.13 $ 0.60 $ 11.04
------- ------- --------- ------- --------- ---------
Average tenant improvement and lease commission p.s.f. $ 7.77 $ 10.31 $ 8.06 $ 6.57 $ 9.34 $ 10.57
======= ======= ========= ======= ========= =========
32
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
AS OF MARCH 31, 2000
ACQUISITIONS
ANTICIPATED
INITIAL FUTURE TOTAL CURRENT
PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY
-------- ------------- ----------- ---------- ---------- ---------- ---------
ACQUISITIONS
CLASS A OFFICE BUILDINGS
One and Two Reston Overlook Jan-00 444,286 $ 15,200,000 $ - $ 15,200,000 (1) 100%
504, 506, 508 Carnegie Center Mar-00 408,163 66,500,000 - 66,500,000 100%
------------- --------------- ------------- -------------- ----------
TOTAL VALUE CREATION PIPELINE - 852,449 $ 81,700,000 $ - $ 81,700,000 100%
ACQUISITIONS ============= =============== ============= ============== ==========
DISPOSITIONS
CLOSING NET
PROPERTY DATE DISPOSED SQUARE FEET SALE PRICE COSTS BOOK VALUE GAIN
- -------- ------------- ----------- ---------- ----- ---------- ----
NO ACTIVITY
(1) Represents the acquisition of the joint venture partner's 75% interest.
33
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
AS OF MARCH 31, 2000
# OF
DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION BUILDINGS
- ---------------------- ----------------- ------------------ -------- ---------
CLASS A OFFICE BUILDINGS
Market Square North (50% ownership) Q1 2000 Q4 2000 Washington, DC 1
Orbital Sciences Phase I - Building 1 & 3 Q2 2000 Q2 2000 Dulles, VA 2
New Dominion Tech Park - Building 1 Q4 2000 Q4 2000 Herndon, VA 1
302 Carnegie Center Q4 2000 Q2 2001 Princeton, NJ 1
2600 Tower Oaks Boulevard Q4 2000 Q3 2001 Rockville, MD 1
140 Kendrick Street Q1 2001 Q1 2001 Needham, MA 3
Orbital Sciences Phase II - Building 2 Q2 2001 Q2 2001 Dulles, VA 1
111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1
5 Times Square Q4 2001 Q2 2002 New York, NY 1
--------
TOTAL DEVELOPMENT PROPERTIES 12
========
ANTICIPATED CURRENT
INVESTMENT TOTAL PERCENTAGE
DEVELOPMENT PROPERTIES SQUARE FEET TO DATE INVESTMENT LEASED
- ---------------------- ----------- ------- ---------- ------
CLASS A OFFICE BUILDINGS
Market Square North (50% ownership) 409,843 $ 47,332,951 $ 61,631,239 (1) 87%
Orbital Sciences Phase I - Building 1 & 3 174,832 23,535,844 33,100,000 100%
New Dominion Tech Park - Building 1 235,201 18,656,698 48,800,000 100%
302 Carnegie Center 64,565 4,385,684 12,900,000 0%
2600 Tower Oaks Boulevard 178,216 7,369,012 38,295,000 20%
140 Kendrick Street 381,000 45,416,596 80,856,000 (2) 100%
Orbital Sciences Phase II - Building 2 160,502 3,576,929 28,018,000 100%
111 Huntington Avenue - Prudential Center 890,000 93,395,401 290,000,000 32%
5 Times Square 1,099,154 206,015,236 536,100,000 100%
------------- ------------------ ------------------ -----------
TOTAL DEVELOPMENT PROPERTIES 3,593,313 $ 449,684,351 $ 1,129,700,239 76%
============= ================== ================== ===========
DEVELOPMENTS PLACED-IN-SERVICE DURING 2000
PLACED # OF INVESTMENT
IN SERVICE DATE LOCATION BUILDINGS SQUARE FEET TO DATE
--------------- -------- --------- ----------- -------
NO DEVELOPMENT PROPERTIES PLACED IN SERVICE DURING THIS PERIOD
TOTAL PERCENTAGE
INVESTMENT LEASED
---------- ------
NO DEVELOPMENT PROPERTIES PLACED IN SERVICE DURING THIS PERIOD
(1) Represents 50% of the total anticipated project-level investment. #REF!
(2) Net of tenant work paid by the developer until completion that is estimated
to be $16.4 million.
34
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
VALUE CREATION PIPELINE - OWNED LAND PARCELS
AS OF MARCH 31, 2000
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
- -------- ------- ------- -----------
S. San Francisco, CA 2 3.6 376,425
Andover, MA 2 19.9 230,000
Boston, MA (1) 4 2.5 839,000
Waltham, MA 2 32.0 418,000
Rockville, MD (2) 6 111.5 1,378,216
Dulles, VA 2 91.0 1,061,500
Herndon, VA 2 25.2 370,200
Reston, VA 2 5.5 775,000
Gaithersburg, MD 2 27.0 600,000
Springfield, VA 3 9.4 130,000
---------- ----------- ------------
27 327.6 6,178,341
========== =========== ============
(1) Boston Properties has a 50% ownership interest.
(2) Includes 254,000 square feet of building on a 7.5 acre parcel under a
ground lease to a third party.
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
AS OF MARCH 31, 2000
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
- -------- ------- ------- -----------
Princeton, NJ (1) 14 149.9 1,921,335
Cambridge, MA (2) 1 2.6 165,500
New York, NY (3) 1 0.5 1,194,918
Chelmsford, MA (4) 1 26.0 259,918
San Jose, CA (5) 5 3.7 795,000
---------- ----------- ------------
22 182.7 4,336,671
========== =========== ============
(1) $20.00/FAR plus an earnout calulation.
(2) Prior to January 23, 2001 the cost would be $25.02/ SF of land area then
$25.92/ SF of land area prior to January 23, 2002. Land area is
approximately 108,000 SF.
(3) $159.75 million for both leasehold interest and ESAC credits.
(4) $11.54/RSF plus an earnout calculation. Purchase subject to receiving all
necessary permits and approvals.
(5) $ 26.3 million subject to receiving all necessary permits and approvals.
35
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
ACQUISITION PROPERTY PROFILE
PROPERTY NAME: One and Two Reston Overlook
PRODUCT TYPE: Two Class A Office Buildings
LOCATION: Reston, Virginia
DESCRIPTION: Class A Office Space
SIZE: 444,286 net rentable square feet
YEAR CONSTRUCTED: 1999
PURCHASE PRICE: $15.2 million (1)
CLOSING DATE: January 12, 2000
FUTURE INVESTMENT: $ -
OCCUPANCY LEVEL: 100%
NUMBER OF TENANTS: Eight
FUNDING SOURCE: Cash and assumption of mortgage debt
LARGEST TENANT:
COMPANY: TRW SIZE: 309,689 LEASE EXPIRATION: 01/2011
(1) Represents the acquisition of the joint venture partner's 75% interest.
36
BOSTON PROPERTIES, INC.
FIRST QUARTER 2000
ACQUISITION PROPERTY PROFILE
PROPERTY NAME: 504, 506, 508 Carnegie Center
PRODUCT TYPE: Three Class A Office Buildings
LOCATION: Carnegie Center, Princeton, NJ
DESCRIPTION: Class A Office Space
SIZE: 408,163 net rentable square feet
YEAR CONSTRUCTED: 1991
PURCHASE PRICE: $66.5 million
CLOSING DATE: March 1, 2000
FUTURE INVESTMENT: $ -
OCCUPANCY LEVEL: 100%
NUMBER OF TENANTS: Three
FUNDING SOURCE: Assumption of mortgage debt of $49.0 million and the issuance of 577,817 common units
of the operating partnership
LARGEST TENANT:
COMPANY: Raytheon SIZE: 131,085 LEASE EXPIRATION: 03/2011
Raytheon 108,184 10/2013
37