EXHIBIT 99.1
================================================================================
BOSTON PROPERTIES, INC.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2000
================================================================================
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
====================================================================================================================================
INDEX
PAGE PAGE
COMPANY BACKGROUND 3 R&D PROPERTIES - LEASE EXPIRATION ROLL OUT 25
INVESTOR INFORMATION 4-5 INDUSTRIAL PROPERTIES - LEASE EXPIRATION ROLL OUT 26
FINANCIAL HIGHLIGHTS 6 GRAND TOTAL - OFFICE, R&D AND INDUSTRIAL PROPERTIES 27
CONSOLIDATED BALANCE SHEETS 7 BOSTON AREA LEASE EXPIRATION ROLL OUT 28
CONSOLIDATED INCOME STATEMENTS 8 WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 29
FUNDS FROM OPERATIONS 9 SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 30
FINANCIAL RATIOS 10 NEW YORK AREA LEASE EXPIRATION ROLL OUT 31
CAPITAL STRUCTURE 11 PRINCETON AREA LEASE EXPIRATION ROLL OUT 32
DEBT ANALYSIS 12-14 OTHER AREA LEASE EXPIRATION ROLL OUT 33
JOINT VENTURES 15 HOTEL PERFORMANCE 34
PORTFOLIO OVERVIEW - SQUARE FOOTAGE 16 SAME PROPERTY PERFORMANCE 35
PROPERTY LISTING 17-20 "IN-SERVICE" PROPERTY PERFORMANCE 36
TOP 20 TENANTS 21 CAPITAL EXPENDITURES 37
PORTFOLIO OVERVIEW - FFO 22 VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 38
OCCUPANCY ANALYSIS 23 VALUE CREATION PIPELINE - DEVELOPMENT 39
OFFICE PROPERTIES - LEASE EXPIRATION ROLL OUT 24 VALUE CREATION PIPELINE - LAND PARCELS 40
ACQUISITION PROPERTY PROFILE 41
====================================================================================================================================
2
BOSTON PROPERTIES, INC.
THIRD 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
46 properties adding approximately 16.1 million square feet to its
portfolio, representing an investment of approximately $3.9 billion, and the
Company has delivered 17 development properties adding approximately 2.5
million square feet to its portfolio, representing an investment of
approximately $307.9 million. In addition, the Company is developing
eighteen office properties for a total anticipated investment of
approximately $1.3 billion. The Company owns or controls land where it can
develop an additional 13.6 million square feet.
3
BOSTON PROPERTIES, INC.
THIRD 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, Chief Financial
Officer and Treasurer
Elaine M. Quinlan Director of Investor Relations
TIMING
QUARTERLY RESULTS FOR 2000 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING
ANTICIPATED SCHEDULE:
YEAR END 2000 WEEK OF JANUARY 22-26
4
BOSTON PROPERTIES, INC.
THIRD 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 (BASED ON NEW YORK STOCK EXCHANGE CLOSING PRICES):
==================================================================================================================================
3RD QUARTER 2000 3RD QUARTER 1999
---------------- ----------------
HIGH PRICE $ 43.2500 $ 35.6250
LOW PRICE $ 37.5625 $ 30.3125
CLOSING PRICE $ 42.9375 $ 30.6875
DIVIDENDS PER SHARE - ANNUALIZED $ 2.12 $ 1.80
CLOSING DIVIDEND YIELD - ANNUALIZED 4.94% 5.87%
CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 106,278 104,721
CLOSING MARKET VALUE OF SHARES AND UNITS OUTSTANDING (THOUSANDS) $ 4,563,312 $ 3,213,626
==================================================================================================================================
5
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
FINANCIAL HIGHLIGHTS
(UNAUDITED AND IN THOUSANDS)
=====================================================================================================
THREE MONTHS ENDED
---------------------------------------------------
SEPTEMBER 30, 2000 SEPTEMBER 30, 1999 % CHANGE
------------------ ------------------ ---------
INCOME ITEMS:
Revenues $ 223,313 $ 202,137 10.48%
Net Income available to common shareholders $ 36,530 $ 27,418 33.23%
Funds from Operations $ 83,124 $ 67,817 22.57%
Company's share (74.04% and 74.03%) $ 61,543 $ 50,207 22.58%
Funds from Operations per share - basic $ 0.90 $ 0.74 21.62%
Funds from Operations per share - diluted $ 0.85 $ 0.72 17.76%
Dividends per share $ 0.53 $ 0.45 17.78%
RATIOS:
Interest Coverage Ratio 2.68 2.50 7.33%
Dividend Payout Ratio 62.51% 62.25% 0.42%
=====================================================================================================
=====================================================================================================
SEPTEMBER 30, 2000 DECEMBER 31, 1999 % CHANGE
------------------ ----------------- ---------
CAPITALIZATION:
Total Debt $3,453,135 $3,321,584 3.96%
Total Common Shares Outstanding @ Quarter End 69,318 67,910 2.07%
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 2,625 0.00%
Total Common Units Outstanding @ Quarter End 23,965 23,810 0.65%
Total Preferred Units Outstanding @ Quarter End
(if converted) 10,370 10,376 -0.06%
Price @ Quarter End $ 42.9375 $ 31.1250 37.95%
Equity Value @ Quarter End $4,563,312 $3,259,441 40.00%
Total Market Capitalization $8,016,447 $6,581,025 21.81%
Debt/Total Market Capitalization 43.08% 50.47% -14.65%
=====================================================================================================
6
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
===========================================================================================
SEPTEMBER 30, 2000 DECEMBER 31, 1999
------------------ -----------------
ASSETS (unaudited)
Real estate and equipment $ 5,166,892 $ 5,150,341
Development in progress 508,745 332,149
Land held for future development 107,324 126,934
Less accumulated depreciation (554,339) (470,591)
----------- -----------
Total real estate and equipment 5,228,622 5,138,833
Cash and cash equivalents 12,430 12,035
Escrows 29,509 40,254
Investments in securities 14,065 14,460
Tenant and other receivables, net 40,039 28,362
Accrued rental income, net 89,072 82,228
Deferred charges, net 74,743 53,733
Prepaid expenses and other assets 49,519 28,452
Investments in joint ventures 73,118 36,415
----------- -----------
TOTAL ASSETS $ 5,611,117 $ 5,434,772
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $ 3,218,135 $ 2,955,584
Unsecured line of credit 235,000 366,000
Accounts payable and accrued expenses 59,542 66,780
Dividends payable 61,217 50,114
Accrued interest payable 5,951 8,486
Other liabilities 60,831 48,282
----------- -----------
Total liabilities 3,640,676 3,495,246
----------- -----------
Commitments and contingencies -- --
----------- -----------
Minority interests 774,365 781,962
----------- -----------
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, 69,317,999 and 67,910,434 issued
and outstanding, respectively 693 679
Additional paid-in capital 1,112,855 1,067,778
Dividends in excess of earnings (11,879) (10,893)
Deferred compensation (901) --
Accumulated other comprehensive loss (4,692) --
----------- -----------
Total stockholders' equity 1,096,076 1,057,564
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 5,611,117 $ 5,434,772
=========== ===========
===========================================================================================
7
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
CONSOLIDATED INCOME STATEMENTS
(UNAUDITED AND IN THOUSANDS)
=========================================================================================================================
THREE MONTHS ENDED
-------------------------------------------
30-SEP-00 30-SEP-99 % CHANGE
--------- --------- ----------
Revenue:
Rental
Base Rent (1) $ 183,749 $ 166,582 10.31%
Recoveries from tenants 22,886 19,212 19.12%
Parking and other 12,798 11,261 13.65%
--------- --------- ---------
Total rental revenue 219,433 197,055 11.36%
Development and management services 2,693 3,706 -27.33%
Interest and other 1,187 1,376 -13.74%
--------- --------- ---------
Total revenue 223,313 202,137 10.48%
--------- --------- ---------
Expenses:
Rental expenses 68,154 66,665 2.23%
General and administrative 9,871 7,383 33.70%
Interest (2) 54,752 51,768 5.76%
Depreciation and amortization 32,436 31,078 4.37%
--------- --------- ---------
Total expenses 165,213 156,894 5.30%
--------- --------- ---------
Income before minority interests and before income
from unconsolidated joint ventures 58,100 45,243 28.42%
Minority interest in property partnership (245) (179) 36.87%
Income from unconsolidated joint ventures 549 206 166.50%
--------- --------- ---------
Income before preferred distribution and minority
interest in Operating Partnership 58,404 45,270 29.01%
Preferred distribution (6,605) (6,649) -0.66%
Minority interest in Operating Partnership (3) (13,022) (9,599) 35.66%
--------- --------- ---------
Income before gain (loss) on sales of real estate 38,777 29,022 33.61%
Gain (loss) on sales of real estate, net (604) 50 -1308.00%
--------- --------- ---------
Net income before preferred dividend 38,173 29,072 31.31%
Preferred dividend (1,643) (1,654) -0.67%
--------- --------- ---------
Net income available to common shareholders $ 36,530 $ 27,418 33.23%
========= ========= =========
INCOME PER SHARE OF COMMON STOCK
Net income available to common shareholders per share - basic $ 0.53 $ 0.40 32.50%
========= ========= =========
Net income available to common shareholders per share - diluted $ 0.50 $ 0.40 25.00%
========= ========= =========
=========================================================================================================================
(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 $3,587 and $5,296 for the
three months ended September 30, 2000 and 1999, respectively.
(2) Excludes capitalized interest of $9,869 and $4,499 for the
three months ended September 30, 2000 and 1999, respectively.
(3) Equals minority interest percent (25.96% and 25,97%,
respectively) of income before minority interest in Operating
Partnership after deduction for preferred dividends and
distributions.
8
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
==================================================================================================================================
THREE MONTHS ENDED
-----------------------------------------------
30-SEP-00 30-SEP-99 % CHANGE
-----------------------------------------------
Income from operations before minority interests and before income from
unconsolidated joint ventures $ 58,100 $ 45,243 28.42%
Add:
Real estate depreciation and amortization (1) 33,007 30,882 6.88%
Income from unconsolidated joint ventures 549 206 166.50%
Less:
Minority property partnership's share of funds from operations (284) (211) 34.60%
Preferred dividends and distributions (8,248) (8,303) -0.66%
-------- -------- ------
Funds from Operations $ 83,124 $ 67,817 22.57%
======== ======== ======
Funds from Operations available to common shareholders (2) $ 61,543 $ 50,207 22.58%
======== ======== ======
Funds from Operations per share - basic $ 0.90 $ 0.74 21.72%
======== ======== ======
Weighted average shares outstanding - basic 68,752 67,901 1.25%
======== ======== ======
Funds from Operations per share - diluted $ 0.85 $ 0.72 18.06%
======== ======== ======
Weighted average shares outstanding - diluted 83,657 81,485 2.67%
======== ======== ======
==================================================================================================================================
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
====================================================================================================================================
For the Three Months Ended For the Three Months Ended
September 30, 2000 September 30, 1999
------------------------------------- -----------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
---------- ------------- --------- ----------- ------------- ---------
Basic Funds from Operations $83,124 92,860 $ 0.90 $67,817 91,718 $ 0.74
Effect of Dilutive Securities
Convertible Preferred Units 6,605 10,370 (0.02) 6,649 10,377 (0.01)
Convertible Preferred Stock 1,643 2,625 (0.01) 1,654 2,625 --
Stock Options -- 1,909 (0.02) -- 583 (0.01)
------- ------- -------- ------- ------- --------
Dilutive Funds from Operations (3) $91,372 107,764 $ 0.85 $76,120 105,303 $ 0.72
======= ======= ======== ======= ======= ========
Company's share of Diluted Funds from Operations $70,931 83,657 $ 0.85 $58,902 81,485 $ 0.72
======= ======= ======== ======= ======= ========
====================================================================================================================================
(1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $1,018 and $255, less
corporate related depreciation of $447 and $451, for the three months ended September 30, 2000 and 1999, respectively.
(2) Based on weighted average shares for the quarter. Company's share for the quarter ended September 30, 2000 and 1999,
respectively was 74.04% and 74.03%.
(3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended September 30, 2000 and
1999 was 77.63% and 77.38%, respectively.
9
FINANCIAL RATIOS
======================================================================================================
THREE MONTHS ENDED
SEPTEMBER 30, 2000
------------------
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1)(2)
Debt Service Coverage Ratio 2.30
(EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal)
Interest Coverage Ratio 2.68
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Return on Shareholder's Equity 17.97%
(EBITDA - Interest)/Average Equity (book value) (%)
Return on Real Estate Investments 10.91%
(EBITDA/Average Real Estate Investments (book value)) (%)
FFO Payout Ratio 62.35%
(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.
10
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
CAPITAL STRUCTURE
DEBT
(IN THOUSANDS)
===================================================================================================
AGGREGATE PRINCIPAL
SEPTEMBER 30, 2000
-------------------
Mortgage Loans $3,218,135
Unsecured Line of Credit 235,000
----------
Total Debt $3,453,135
==========
===================================================================================================
EQUITY
(IN THOUSANDS)
===================================================================================================
COMMON
SHARES & UNITS STOCK $ VALUE
OUTSTANDING EQUIVALENTS EQUIVALENT(1)
-------------- ----------- --------------
Common Stock 69,318 69,318 $2,976,342
Preferred Stock 2,000 2,625 112,711
Operating Partnership Units 23,965 23,965 1,028,997
Preferred Operating Partnership Units 8,707 10,370 445,262
---------- ----------
Total Equity 106,278 $4,563,312
========== ==========
Total Market Capitalization $8,016,447
==========
===================================================================================================
(1) Value based on September 30, 2000 closing price of $ 42.9375
11
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
===============================================================================================================
YEAR 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL
---- -------- ---- ---- ---- ---- ---------- -----
Amount $ 84,715 $ 191,673 $ 481,321 $625,689 $129,979 $ 1,939,758 $3,453,135
===============================================================================================================
(1) For the period from October 1, 2000 through December 31, 2000.
UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003
(IN THOUSANDS)
===================================================================================================
OUTSTANDING LETTERS OF REMAINING
FACILITY @ 9/30/2000 CREDIT CAPACITY
-------- ----------- ---------- ----------
$ 605,000 235,000 45,826 $ 324,174
===================================================================================================
UNSECURED AND SECURED DEBT ANALYSIS
===================================================================================================
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
------------ ------------ ---------------
Unsecured Debt 6.81% 7.64% 2.5 years
Secured Debt 93.19% 7.27% 5.5 years
------------ ------------ ---------------
Total Debt 100.00% 7.30% 5.3 years
============ ============ ===============
===================================================================================================
FLOATING AND FIXED RATE DEBT ANALYSIS
===================================================================================================
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
------------ ------------ ---------------
Floating Rate Debt 18.52% 8.14% 2.0 years
Fixed Rate Debt 81.48% 7.11% 6.1 years
------------ ------------ ---------------
Total Debt 100.00% 7.30% 5.3 years
============ ============ ===============
===================================================================================================
12
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
====================================================================================================================================
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL
- ----------------------------------------------- ----------- -------- -------- -------- -------- ---------- --------
Embarcadero Center One, Two and Federal Reserve $ 944 $ 3,936 $ 4,208 $ 4,498 $ 4,808 $295,425 $313,819
Prudential Center 850 3,777 4,039 4,319 4,564 275,226 292,775
The Unsecured Line of Credit -- -- -- 235,000 -- -- 235,000
599 Lexington Avenue -- -- -- -- -- 225,000 225,000
280 Park Avenue 1,467 8,800 209,000 -- -- -- 219,267
5 Times Square -- -- -- 161,199 -- -- 161,199
Embarcadero Center Four 711 2,894 3,097 3,314 3,546 141,663 155,225
875 Third Avenue 598 2,341 148,534 -- -- -- 151,473
Embarcadero Center Three 464 1,941 2,069 2,206 2,351 137,751 146,782
Two Independence Square 489 1,036 1,500 113,840 -- -- 116,865
Riverfront Plaza 575 2,397 2,560 2,735 2,921 105,034 116,222
Democracy Center 254 1,588 1,703 1,828 1,961 100,509 107,843
Embarcadero Center West Tower 304 1,272 1,358 1,449 1,546 91,965 97,894
100 East Pratt Street 387 1,615 1,727 1,847 1,975 84,687 92,238
601 and 651 Gateway Boulevard(2) 75,000 -- -- -- -- -- 75,000
One Independence Square 315 74,114 -- -- -- -- 74,429
Reservoir Place 465 1,978 2,669 2,859 3,062 63,288 74,321
One & Two Reston Overlook 169 709 764 823 65,837 -- 68,302
2300 N Street -- -- -- 66,000 -- -- 66,000
Capital Gallery 175 1,097 1,191 1,293 1,404 52,176 57,336
111 Huntington Avenue -- -- 52,533 -- -- -- 52,533
504,506,508 Carnegie Center 135 846 909 979 1,053 44,585 48,507
10 and 20 Burlington Mall Road -- 37,000 -- -- -- -- 37,000
10 Cambridge Center 113 477 518 563 611 33,534 35,816
1301 New York Avenue 158 1,046 1,129 1,403 1,314 27,783 32,833
====================================================================================================================================
(1) For the period from October 1, 2000 through December 31, 2000.
(2) Subsequent to September 30, 2000, refinanced with $90.0 million loan
maturing in October 2010 and bearing interest at a rate equal to 8.40%.
13
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
DEBT ANALYSIS
LONG-TERM DEBT MATURITIES AND PRINCIPAL PAYMENTS (CONTINUED)
(IN THOUSANDS)
====================================================================================================================================
PROPERTY 2000 (1) 2001 2002 2003 2004 THEREAFTER TOTAL
- ---------------------------------------- ----------- ---------- ---------- ---------- ---------- ----------- -----------
New Dominion Technology Park, Building 1 -- 31,883 -- -- -- -- 31,883
Eight Cambridge Center 104 442 477 515 557 26,388 28,483
510 Carnegie Center 65 475 511 550 587 25,576 27,764
Sumner Square -- -- -- -- 26,825 -- 26,825
Lockheed Martin Building 122 529 565 604 640 23,954 26,414
University Place 137 573 615 659 706 22,700 25,390
Orbital Sciences - Phase 1 -- -- 25,207 -- -- -- 25,207
Reston Corporate Center 116 506 540 577 612 22,577 24,928
206 Carnegie Center 30 190 206 223 242 22,109 23,000
191 Spring Street 81 344 374 407 443 21,230 22,879
Bedford Business Park 128 539 587 639 695 19,257 21,845
NIMA Building 101 438 468 499 529 19,563 21,598
214 Carnegie Center 28 173 188 204 221 20,186 21,000
202 Carnegie Center 25 157 170 184 200 18,264 19,000
2600 Tower Oaks Boulevard -- -- 11,218 -- -- -- 11,218
101 Carnegie Center 47 299 322 348 345 7,058 8,419
Montvale Center 22 135 147 160 175 6,947 7,586
Newport Office Park 78 5,923 -- -- -- -- 6,001
Hilltop Business Center 52 164 176 188 201 5,009 5,790
302 Carnegie Center -- -- -- 5,033 -- -- 5,033
Quorum Office Park -- -- -- 4,456 -- -- 4,456
Orbital Sciences - Phase 2 -- -- -- 4,243 -- -- 4,243
201 Carnegie Center 6 39 42 45 48 314 494
---------- ---------- ---------- ---------- ---------- ---------- ----------
$ 84,715 $ 191,673 $ 481,321 $ 625,689 $ 129,979 $1,939,758 $3,453,135
========== ========== ========== ========== ========== ========== ==========
====================================================================================================================================
(1) For the period from October 1, 2000 through December 31, 2000.
14
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
JOINT VENTURES
(UNAUDITED AND IN THOUSANDS)
AS OF SEPTEMBER 30, 2000
====================================================================================================================================
ONE MARKET 140 265
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN
SQUARE NORTH SQUARE STREET STREET COMBINED
--------- --------- --------- --------- -------- --------
Total Equity (1) $ 1,015 $ 24,430 $ 31,362 $ 5,771 $ 10,540 $ 73,118
========= ========= ========= ======== ======== ========
Mortgage/Construction loans payable (1) $ 19,348 $ 34,420 $ 71,168 $ 12,540 $ 23,800 $161,276
========= ========= ========= ======== ======== ========
BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00%
========= ========= ========= ======== ========
====================================================================================================================================
RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000
====================================================================================================================================
ONE MARKET 140 265
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN
SQUARE NORTH(2) SQUARE STREET(3) STREET(4) COMBINED
-------- -------- --------- --------- -------- --------
REVENUE
Total revenue $ 3,806 $ 3,199 $ 5,750 -- $ 585 $13,340
------- ------- ------- ------- ------- -------
EXPENSES
Operating 967 747 1,852 -- 230 3,796
Interest 1,676 964 2,875 -- 285 5,800
Depreciation and amortization 1,045 407 1,039 -- 110 2,601
------- ------- ------- ------- ------- -------
Total expenses 3,688 2,118 5,766 -- 625 12,197
------- ------- ------- ------- ------- -------
Net income(loss) $ 118 $ 1,081 $ (16) -- $ (40) $ 1,143
======= ======= ======= ======= ======= =======
BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00%
======= ======= ======= ======= =======
BXP's share of net income(loss) $ 30 $ 541 $ (8) -- $ (14) $ 549
======= ======= ======= ======= ======= =======
====================================================================================================================================
(1) Represents the Company's share.
(2) Includes the residential component of the joint venture for the period
from July 1, 2000 through August 16,2000 (disposition date).
(3) Property is currently under development.
(4) Represents the operations for the period from September 13, 2000
(acquisition date) through September 30, 2000.
15
BOSTON PROPERTIES, INC.
THIRD 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 5,750,181(2) 545,206 247,318 6,542,705 25.38%
Greater Washington, D.C 5,655,380(3) 1,142,329 237,195 7,034,904 27.28%
Greater San Francisco 4,431,743 144,366 280,213 4,856,322 18.84%
Midtown Manhattan 2,844,534 -- -- 2,844,534 11.03%
Princeton/East Brunswick, NJ 2,278,235 -- -- 2,278,235 8.84%
Baltimore, MD 1,171,599 -- -- 1,171,599 4.54%
Richmond, VA 894,015 -- -- 894,015 3.47%
Bucks County, PA -- -- 161,000 161,000 0.62%
---------- ---------- ---------- ---------- ----------
23,025,687 1,831,901 925,726 25,783,314 100.00%
========== ========== ========== ========== ==========
% of Total 89.30% 7.10% 3.60% 100.00%
==================================================================================================================
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
======= =======
==================================================================================================================
STRUCTURED PARKING
==================================================================================================================
NUMBER OF SQUARE
SPACES FEET
---------- -------
TOTAL STRUCTURED PARKING 16,854 5,889,221
====== =========
==================================================================================================================
(1) Includes retail square footage of approximately 1,000,000.
(2) Includes 326,714 square feet at 265 Franklin Street which is 35% owned by Boston Properties.
(3) Includes 414,296 square feet at One Freedom Square which is 25% owned by Boston Properties and
578,340 square feet at Metropolitan Square which is 51% owned by Boston Properties.
16
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
PROPERTY LISTING
as of September 30, 2000
====================================================================================================================================
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET
---------- --------- -----------
GREATER BOSTON
OFFICE
THE PRUDENTIAL CENTER CBD Boston MA 3 2,149,232
265 FRANKLIN STREET (35% OWNERSHIP) CBD Boston MA 1 326,714
ONE CAMBRIDGE CENTER East Cambridge MA 1 215,385
THREE CAMBRIDGE CENTER East Cambridge MA 1 107,484
EIGHT CAMBRIDGE CENTER East Cambridge MA 1 177,226
TEN CAMBRIDGE CENTER East Cambridge MA 1 152,664
ELEVEN CAMBRIDGE CENTER East Cambridge MA 1 79,616
UNIVERSITY PLACE Mid-Cambridge MA 1 195,282
RESERVOIR PLACE Route 128 Mass Turnpike MA 1 529,991
204 SECOND AVENUE Route 128 Mass Turnpike MA 1 40,974
170 TRACER LANE Route 128 Mass Turnpike MA 1 73,203
WALTHAM OFFICE CENTER Route 128 Mass Turnpike MA 3 131,479
195 WEST STREET Route 128 Mass Turnpike MA 1 63,500
200 WEST STREET Route 128 Mass Turnpike MA 1 248,341
10 & 20 BURLINGTON MALL ROAD Route 128 Northwest MA 2 156,416
BEDFORD BUSINESS PARK Route 128 Northwest MA 1 90,000
32 HARTWELL AVENUE Route 128 Northwest MA 1 69,154
91 HARTWELL AVENUE Route 128 Northwest MA 1 122,135
92 HAYDEN AVENUE Route 128 Northwest MA 1 30,980
100 HAYDEN AVENUE Route 128 Northwest MA 1 55,924
33 HAYDEN AVENUE Route 128 Northwest MA 1 79,564
LEXINGTON OFFICE PARK Route 128 Northwest MA 2 167,293
191 SPRING STREET Route 128 Northwest MA 1 162,700
181 SPRING STREET Route 128 Northwest MA 1 53,595
201 SPRING STREET Route 128 Northwest MA 1 102,500
NEWPORT OFFICE PARK Route 128 South MA 1 168,829
------------------- ---------------------
32 5,750,181
------------------- ---------------------
RESEARCH & DEVELOPMENT
FOURTEEN CAMBRIDGE CENTER East Cambridge MA 1 67,362
BEDFORD BUSINESS PARK Route 128 Northwest MA 2 383,704
17 HARTWELL AVENUE Route 128 Northwest MA 1 30,000
164 LEXINGTON ROAD Route 128 Northwest MA 1 64,140
------------------- ---------------------
5 545,206
------------------- ---------------------
INDUSTRIAL
25-33 DARTMOUTH ROAD Route 128 Southwest MA 1 78,045
40-46 HARVARD STREET Route 128 Southwest MA 1 169,273
------------------- ---------------------
2 247,318
------------------- ---------------------
TOTAL GREATER BOSTON, MA AREA: 39 6,542,705
====================================================================================================================================
==========================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED % OCCUPIED SF
---------- -----------
GREATER BOSTON
OFFICE
THE PRUDENTIAL CENTER 99.8% $ 32.94
265 FRANKLIN STREET (35% OWNERSHIP) 100.0% 32.82
ONE CAMBRIDGE CENTER 100.0% 37.86
THREE CAMBRIDGE CENTER 100.0% 28.47
EIGHT CAMBRIDGE CENTER 100.0% 26.87
TEN CAMBRIDGE CENTER 100.0% 33.25
ELEVEN CAMBRIDGE CENTER 100.0% 37.73
UNIVERSITY PLACE 100.0% 31.31
RESERVOIR PLACE 96.1% 31.07
204 SECOND AVENUE 100.0% 26.24
170 TRACER LANE 100.0% 38.32
WALTHAM OFFICE CENTER 100.0% 28.17
195 WEST STREET 100.0% 26.97
200 WEST STREET 98.0% 31.66
10 & 20 BURLINGTON MALL ROAD 99.0% 27.18
BEDFORD BUSINESS PARK 100.0% 20.78
32 HARTWELL AVENUE 100.0% 15.42
91 HARTWELL AVENUE 100.0% 25.23
92 HAYDEN AVENUE 93.1% 26.10
100 HAYDEN AVENUE 100.0% 30.00
33 HAYDEN AVENUE 100.0% 24.47
LEXINGTON OFFICE PARK 100.0% 27.30
191 SPRING STREET 100.0% 27.55
181 SPRING STREET 100.0% 33.03
201 SPRING STREET 100.0% 28.58
NEWPORT OFFICE PARK 100.0% 23.27
----------------------------------
99.4% $ 30.91
----------------------------------
RESEARCH & DEVELOPMENT
FOURTEEN CAMBRIDGE CENTER 100.0% 19.23
BEDFORD BUSINESS PARK 79.2% 11.73
17 HARTWELL AVENUE 100.0% 10.00
164 LEXINGTON ROAD 100.0% 9.12
----------------------------------
85.3% $ 12.34
----------------------------------
INDUSTRIAL
25-33 DARTMOUTH ROAD 100.0% 9.84
40-46 HARVARD STREET 89.8% 7.03
----------------------------------
93.0% $ 7.98
----------------------------------
98.0%
==========================================================================================
17
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
PROPERTY LISTING
AS OF SEPTEMBER 30, 2000
====================================================================================================================================
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET
---------- --------- -----------
GREATER WASHINGTON, D.C.
OFFICE
2300 N STREET West End Washington DC 1 276,930
ONE INDEPENDENCE SQUARE Southwest Washington DC 1 337,794
TWO INDEPENDENCE SQUARE Southwest Washington DC 1 579,665
CAPITAL GALLERY Southwest Washington DC 1 396,776
500 E STREET, N. W. Southwest Washington DC 1 242,769
METROPOLITAN SQUARE (51% OWNERSHIP) East End Washington DC 1 578,340
1301 NEW YORK AVENUE East End Washington DC 1 168,371
SUMNER SQUARE CBD Washington DC 1 209,507
DECOVERLY TWO Montgomery County MD 1 77,747
DECOVERLY THREE Montgomery County MD 1 77,040
DEMOCRACY CENTER Montgomery County MD 3 680,475
MONTVALE CENTER Montgomery County MD 1 120,815
ORBITAL SCIENCES, BUILDINGS ONE AND THREE Loudoun County 2 174,832
THE ARBORETUM Fairfax County VA 1 95,584
ONE FREEDOM SQUARE (25% OWNERSHIP) Fairfax County VA 1 414,296
ONE RESTON OVERLOOK Fairfax County VA 1 312,685
TWO RESTON OVERLOOK Fairfax County VA 1 131,594
RESTON CORPORATE CENTER Fairfax County VA 2 261,046
LOCKHEED MARTIN BUILDING Fairfax County VA 1 255,244
NIMA BUILDING Fairfax County VA 1 263,870
--------------------------------------
24 5,655,380
--------------------------------------
RESEARCH & DEVELOPMENT
FULLERTON SQUARE Fairfax County VA 2 178,294
SUGARLAND BUSINESS PARK, BUILDING ONE Fairfax County VA 1 52,797
SUGARLAND BUSINESS PARK, BUILDING TWO Fairfax County VA 1 59,215
7435 BOSTON BOULEVARD Fairfax County VA 1 103,557
7451 BOSTON BOULEVARD Fairfax County VA 1 47,001
7450 BOSTON BOULEVARD Fairfax County VA 1 60,827
7374 BOSTON BOULEVARD Fairfax County VA 1 57,321
8000 GRAINGER COURT Fairfax County VA 1 90,465
7500 BOSTON BOULEVARD Fairfax County VA 1 79,971
7501 BOSTON BOULEVARD Fairfax County VA 1 75,756
7601 BOSTON BOULEVARD Fairfax County VA 1 103,750
7600 BOSTON BOULEVARD Fairfax County VA 1 69,832
7375 BOSTON BOULEVARD Fairfax County VA 1 28,780
8000 CORPORATE COURT Fairfax County VA 1 52,539
7700 BOSTON BOULEVARD Fairfax County VA 1 82,224
--------------------------------------
16 1,142,329
--------------------------------------
INDUSTRIAL
1950 STANFORD COURT Prince Georges County MD 1 53,250
6201 COLUMBIA PARK ROAD Prince Georges County MD 1 100,337
2000 SOUTH CLUB DRIVE Prince Georges County MD 1 83,608
--------------------------------------
3 237,195
--------------------------------------
TOTAL GREATER WASHINGTON, DC AREA: 43 7,034,904
====================================================================================================================================
==========================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED % OCCUPIED SF
---------- -----------
GREATER WASHINGTON, D.C.
OFFICE
2300 N STREET 100.0% $ 48.35
ONE INDEPENDENCE SQUARE 100.0% 38.41
TWO INDEPENDENCE SQUARE 100.0% 37.50
CAPITAL GALLERY 100.0% 34.00
500 E STREET, N. W. 100.0% 31.29
METROPOLITAN SQUARE (51% OWNERSHIP) 99.5% 35.21
1301 NEW YORK AVENUE 100.0% 33.54
SUMNER SQUARE 95.3% 31.54
DECOVERLY TWO 100.0% 21.92
DECOVERLY THREE 100.0% 21.30
DEMOCRACY CENTER 99.8% 26.41
MONTVALE CENTER 95.5% 20.89
ORBITAL SCIENCES, BUILDINGS ONE AND THREE 100.0% 22.93
THE ARBORETUM 100.0% 24.76
ONE FREEDOM SQUARE (25% OWNERSHIP) 95.6% 31.21
ONE RESTON OVERLOOK 100.0% 20.72
TWO RESTON OVERLOOK 100.0% 30.83
RESTON CORPORATE CENTER 100.0% 31.09
LOCKHEED MARTIN BUILDING 100.0% 41.67
NIMA BUILDING 100.0% 45.57
----------------------------
99.3% $ 32.96
----------------------------
RESEARCH & DEVELOPMENT
FULLERTON SQUARE 81.9% 10.35
SUGARLAND BUSINESS PARK, BUILDING ONE 100.0% 21.72
SUGARLAND BUSINESS PARK, BUILDING TWO 100.0% 20.79
7435 BOSTON BOULEVARD 100.0% 13.33
7451 BOSTON BOULEVARD 100.0% 14.76
7450 BOSTON BOULEVARD 100.0% 15.96
7374 BOSTON BOULEVARD 100.0% 11.30
8000 GRAINGER COURT 100.0% 10.82
7500 BOSTON BOULEVARD 100.0% 10.95
7501 BOSTON BOULEVARD 100.0% 24.25
7601 BOSTON BOULEVARD 100.0% 14.99
7600 BOSTON BOULEVARD 100.0% 13.96
7375 BOSTON BOULEVARD 87.8% 17.13
8000 CORPORATE COURT 100.0% 7.50
7700 BOSTON BOULEVARD 100.0% 20.88
----------------------------
96.9% $ 14.77
----------------------------
INDUSTRIAL
1950 STANFORD COURT 38.5% 6.27
6201 COLUMBIA PARK ROAD 53.9% 8.81
2000 SOUTH CLUB DRIVE 100.0% 8.88
----------------------------
66.7% $ 8.52
----------------------------
97.8%
==========================================================================================
18
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
PROPERTY LISTING
AS OF SEPTEMBER 30, 2000
====================================================================================================================================
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET
---------- --------- -----------
MIDTOWN MANHATTAN, NY
OFFICE
599 LEXINGTON AVENUE Park Avenue NY 1 1,000,497
280 PARK AVENUE Park Avenue NY 1 1,156,161
875 THIRD AVENUE East Side NY 1 687,876
--------------------------------------
TOTAL MIDTOWN MANHATTAN, NY AREA: 3 2,844,534
--------------------------------------
PRINCETON/EAST BRUNSWICK, NJ
OFFICE
101 CARNEGIE CENTER Princeton NJ 1 124,049
104 CARNEGIE CENTER Princeton NJ 1 102,758
105 CARNEGIE CENTER Princeton NJ 1 69,648
201 CARNEGIE CENTER Princeton NJ - 6,500
202 CARNEGIE CENTER Princeton NJ 1 128,885
210 CARNEGIE CENTER Princeton NJ 1 159,498
211 CARNEGIE CENTER Princeton NJ 1 47,025
212 CARNEGIE CENTER Princeton NJ 1 150,069
214 CARNEGIE CENTER Princeton NJ 1 152,214
206 CARNEGIE CENTER Princeton NJ 1 161,763
502 CARNEGIE CENTER Princeton NJ 1 116,374
510 CARNEGIE CENTER Princeton NJ 1 234,160
504 CARNEGIE CENTER Princeton NJ 1 126,190
506 CARNEGIE CENTER Princeton NJ 1 150,888
508 CARNEGIE CENTER Princeton NJ 1 131,085
ONE TOWER CENTER East Brunswick NJ 1 417,129
--------------------------------------
--------------------------------------
TOTAL PRINCETON/EAST BRUNSWICK, NJ 15 2,278,235
--------------------------------------
--------------------------------------
GREATER SAN FRANCISCO, CA
OFFICE
EMBARCADERO CENTER ONE CBD San Francisco CA 1 820,817
EMBARCADERO CENTER TWO CBD San Francisco CA 1 777,896
EMBARCADERO CENTER THREE CBD San Francisco CA 1 766,404
EMBARCADERO CENTER FOUR CBD San Francisco CA 1 935,519
FEDERAL RESERVE CBD San Francisco CA 1 149,592
WEST TOWER CBD San Francisco CA 1 475,120
THE GATEWAY South San Francisco CA 2 506,395
--------------------------------------
8 4,431,743
--------------------------------------
RESEARCH & DEVELOPMENT
--------------------------------------
HILLTOP OFFICE CENTER South San Francisco CA 9 144,366
--------------------------------------
INDUSTRIAL
560 FORBES BLVD South San Francisco CA 1 40,000
430 ROZZI PLACE South San Francisco CA 1 20,000
2391 WEST WINTON Hayward CA 1 220,213
--------------------------------------
3 280,213
--------------------------------------
TOTAL GREATER SAN FRANCISCO, CA: 20 4,856,322
======================================
====================================================================================================================================
==========================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED % OCCUPIED SF
---------- -----------
MIDTOWN MANHATTAN, NY
OFFICE
599 LEXINGTON AVENUE 100.0% $ 54.17
280 PARK AVENUE 98.2% 46.11
875 THIRD AVENUE 99.6% 47.33
---------------------------
99.2% $ 49.26
---------------------------
PRINCETON/EAST BRUNSWICK, NJ
OFFICE
101 CARNEGIE CENTER 100.0% 24.63
104 CARNEGIE CENTER 100.0% 28.25
105 CARNEGIE CENTER 100.0% 27.00
201 CARNEGIE CENTER 100.0% 21.62
202 CARNEGIE CENTER 100.0% 27.91
210 CARNEGIE CENTER 100.0% 27.19
211 CARNEGIE CENTER 100.0% 22.53
212 CARNEGIE CENTER 100.0% 27.86
214 CARNEGIE CENTER 92.4% 27.20
206 CARNEGIE CENTER 100.0% 26.84
502 CARNEGIE CENTER 98.2% 27.26
510 CARNEGIE CENTER 100.0% 24.90
504 CARNEGIE CENTER 100.0% 24.71
506 CARNEGIE CENTER 100.0% 25.80
508 CARNEGIE CENTER 100.0% 25.60
ONE TOWER CENTER 100.0% 31.50
---------------------------
99.4% $ 27.28
---------------------------
GREATER SAN FRANCISCO, CA
OFFICE
EMBARCADERO CENTER ONE 98.7% 34.63
EMBARCADERO CENTER TWO 98.1% 37.02
EMBARCADERO CENTER THREE 98.0% 34.56
EMBARCADERO CENTER FOUR 99.7% 38.40
FEDERAL RESERVE 99.2% 43.80
WEST TOWER 99.0% 43.66
THE GATEWAY 96.8% 33.70
---------------------------
98.5% $ 37.02
---------------------------
RESEARCH & DEVELOPMENT
---------------------------
HILLTOP OFFICE CENTER 97.1% $ 12.92
---------------------------
INDUSTRIAL
560 FORBES BLVD 100.0% 9.72
430 ROZZI PLACE 100.0% 11.12
2391 WEST WINTON 100.0% 4.58
---------------------------
100.0% $ 5.78
---------------------------
98.5%
===========
==========================================================================================
19
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
PROPERTY LISTING
AS OF SEPTEMBER 30, 2000
====================================================================================================================================
ANNUALIZED
REVENUE
NUMBER OF PER
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF
BALTIMORE, MD
OFFICE
CANDLER BUILDING Baltimore MD 1 537,363 100.0% $ 16.88
100 EAST PRATT STREET Baltimore MD 1 634,236 100.0% 27.89
-------------------------------------------------------
TOTAL BALTIMORE MD AREA: 2 1,171,599 100.0% $ 22.84
-------------------------------------------------------
RICHMOND, VA
OFFICE
RIVERFRONT PLAZA Richmond VA 1 894,015 100.0% $ 22.47
-------------------------------------------------------
BUCKS COUNTY, PA
INDUSTRIAL
38 CABOT BOULEVARD Bucks County PA 1 161,000 100.0% $ 4.47
-------------------------------------------------------
TOTAL IN-SERVICE PROPERTIES: 124 25,783,314 98.5%
===========================================
===================================================================================================================================
20
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
TOP 20 TENANTS BY SQUARE FEET LEASED
===============================================================================================
TENANT SQ. FT. % OF PORTFOLIO
-------------------------------------- --------------- -------------
1 U.S. Government 2,026,870 7.60%
2 Lockheed Martin Corporation 716,653 2.69%
3 Gillette Company 488,177 1.83%
4 Washington Group International 473,429 1.78%
5 Shearman & Sterling 433,407 1.63%
6 Marsh & McLennan, Inc. 366,102 1.37%
7 TRW 331,048 1.25%
8 Hunton & Williams 322,829 1.21%
9 Covance, Inc. 321,261 1.21%
10 Debevoise & Plimpton 307,125 1.15%
11 AT & T 300,755 1.13%
12 First Union 276,843 1.04%
13 T. Rowe Price Associates, Inc. 276,665 1.04%
14 Andersen Consulting 265,622 1.00%
15 Parexel International Corp. 265,050 0.99%
16 Deutsche Bank 243,722 0.91%
17 Donaldson, Lufkin and Jenrette 237,896 0.89%
18 John Hancock Advisors 233,516 0.88%
19 Biogen, Inc. 220,026 0.83%
20 Orrick, Herrington & Sutcliffe 210,885 0.79%
===============================================================================================
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
===============================================================================================
TENANT SQ. FT.
-------------------------------------- ---------------
Ernst & Young, LLP 1,062,203
Parametric Technology Corporation 381,000
Tellabs Operations, Inc. 259,918
United States of America 235,201
Palmer & Dodge 204,412
===============================================================================================
21
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
PORTFOLIO OVERVIEW - FFO
PERCENTAGE OF PROPERTY FUNDS FROM OPERATIONS (1) FOR IN-SERVICE PROPERTIES BY
LOCATION AND TYPE OF PROPERTY FOR THE QUARTER ENDED SEPTEMBER 30, 2000
================================================================================================================
GEOGRAPHIC AREA OFFICE (2) R&D INDUSTRIAL HOTEL GARAGE TOTAL
--------------- ---------- --- ---------- ----- ------ -----
Greater Boston 19.9% 0.6% 0.2% 7.3% 0.5% 28.5%
Greater Washington, D.C. 20.0% 2.5% 0.1% n/a n/a 22.6%
Greater San Francisco 20.1% 0.2% 0.3% n/a n/a 20.6%
Midtown Manhattan 15.2% n/a n/a n/a n/a 15.2%
Baltimore, MD 3.5% n/a n/a n/a n/a 3.5%
Richmond, VA 2.8% n/a n/a n/a n/a 2.8%
Princeton/East Brunswick, NJ 6.8% n/a n/a n/a n/a 6.8%
Bucks County, PA n/a n/a 0.1% n/a n/a 0.1%
--------- -------- -------- -------- -------- --------
Total 88.3% 3.3% 0.7% 7.3% 0.5% 100.0%
========= ======== ======== ======== ======== ========
================================================================================================================
(1) 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.
(2) Includes Retail Center FFO (Prudential Center Boston and Center).
22
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
OCCUPANCY ANALYSIS
SAME PROPERTY OCCUPANCY - BY LOCATION
=============================================================
LOCATION 30-SEP-00 30-SEP-99
Greater Boston, MA 97.9% 98.4%
Greater Washington, D.C. 97.7% 96.0%
Midtown Manhattan, NY 99.2% 99.9%
Baltimore, MD 100.0% 100.0%
Princeton/East Brunswick, NJ 99.3% 99.0%
Richmond, VA 100.0% 97.1%
Greater San Francisco, CA 98.7% 97.9%
Bucks County, PA 100.0% 100.0%
----------- -----------
Total Portfolio 98.5% 98.0%
=========== ===========
=============================================================
SAME PROPERTY - BY TYPE OF PROPERTY
=============================================================
30-SEP-00 30-SEP-99
Total Office Portfolio 99.3% 98.6%
Total R&D Portfolio 93.4% 95.6%
Total Industrial Portfolio 89.6% 90.4%
----------- -----------
Total Portfolio 98.5% 98.0%
=========== ===========
=============================================================
23
BOSTON PROPERTIES, INC.
THIRD 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 371,795 $ 13,683,429 $ 14,019,006 1.66%
2001 1,954,763 60,072,716 62,227,620 8.75%
2002 1,951,568 74,790,328 75,982,162 8.73%
2003 1,928,122 62,236,628 66,024,378 8.63%
2004 2,484,088 86,805,941 90,042,638 11.11%
2005 2,182,092 71,061,369 77,175,748 9.76%
2006 2,938,252 96,992,025 107,306,953 13.14%
2007 1,428,857 52,678,632 55,300,569 6.39%
2008 864,909 30,690,476 28,949,226 3.87%
2009 1,843,550 59,584,098 74,022,566 8.25%
Thereafter 4,776,456 168,566,969 201,310,214 21.37%
===============================================================================================================================
OCCUPANCY BY LOCATION
===============================================================================================================================
30-SEP-00 30-SEP-99
Greater Boston, MA 99.4% 97.6%
Greater Washington, D.C. 99.3% 98.0%
Midtown Manhattan, NY 99.2% 99.9%
Baltimore, MD 100.0% 100.0%
Richmond, VA 100.0% 97.1%
Princeton/East Brunswick, NJ 99.4% 99.1%
Greater San Francisco, CA 98.5% 97.9%
Bucks County, PA n/a n/a
--------------------- ----------------------
Total Office Portfolio 99.2% 98.3%
===================== ======================
===============================================================================================================================
24
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
IN-SERVICE R&D 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 162,365 $ 1,811,046 $ 1,811,046 10.44%
2001 265,881 3,307,915 3,381,473 17.10%
2002 312,617 4,401,635 4,472,016 20.11%
2003 102,807 1,348,760 1,391,633 6.61%
2004 62,821 886,369 972,346 4.04%
2005 144,755 1,673,499 1,888,034 9.31%
2006 203,000 2,487,710 2,600,210 13.06%
2007 157,895 2,852,803 3,098,987 10.16%
2008 - - - -
2009 - - - -
Thereafter 304,813 5,109,816 6,292,573 19.61%
===============================================================================================================================
OCCUPANCY BY LOCATION
===============================================================================================================================
30-SEP-00 30-SEP-00
Greater Boston, MA 85.3% 100.0%
Greater Washington, D.C. 96.9% 94.0%
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 97.1% 97.9%
Bucks County, PA n/a n/a
----------------- ----------------------
Total R&D Portfolio 93.4% 95.9%
================= ======================
===============================================================================================================================
25
BOSTON PROPERTIES, INC.
THIRD 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 56,747 $ 540,075 $ 540,075 7.34%
2001 60,000 256,085 256,085 7.77%
2002 184,904 927,039 927,039 23.93%
2003 147,305 989,907 1,053,959 19.06%
2004 235,076 1,369,608 1,463,108 30.42%
2005 20,500 128,548 140,832 2.65%
2006 21,298 227,605 288,432 2.76%
2007 20,000 222,456 258,783 2.59%
2008 83,608 742,152 815,347 10.82%
2009 - - - -
Thereafter - - - -
===============================================================================================================================
OCCUPANCY BY LOCATION
===============================================================================================================================
30-SEP-00 30-SEP-99
Greater Boston, MA 93.0% 93.0%
Greater Washington, D.C. 66.7% 78.2%
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 89.6% 90.4%
=================== ======================
===============================================================================================================================
26
BOSTON PROPERTIES, INC.
THIRD 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 590,907 $ 16,034,550 $ 16,370,127 2.34%
2001 2,280,644 63,636,716 65,865,178 9.02%
2002 2,449,089 80,119,002 81,381,217 9.69%
2003 2,178,234 64,575,295 68,469,970 8.62%
2004 2,781,985 89,061,918 92,478,092 11.01%
2005 2,347,347 72,863,416 79,204,614 9.29%
2006 3,162,550 99,707,340 110,195,595 12.51%
2007 1,606,752 55,753,891 58,658,339 6.36%
2008 948,517 31,432,628 29,764,573 3.75%
2009 1,843,550 59,584,098 74,022,566 7.30%
Thereafter 5,081,269 173,676,785 207,602,787 20.11%
====================================================================================================================================
OCCUPANCY BY LOCATION
====================================================================================================================================
30-SEP-00 30-SEP-99
Greater Boston, MA 98.0% 97.6%
Greater Washington, D.C. 97.8% 96.5%
Midtown Manhattan, NY 99.2% 99.9%
Baltimore, MD 100.0% 100.0%
Richmond, VA 100.0% 97.1%
Princeton/East Brunswick, NJ 99.4% 99.1%
Greater San Francisco, CA 98.5% 97.6%
Bucks County, PA 100.0% 100.0%
-------------------- ---------------------
Total Portfolio 98.5% 97.8%
==================== =====================
====================================================================================================================================
27
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
IN-SERVICE GREATER BOSTON PROPERTIES
LEASE EXPIRATIONS
GREATER BOSTON
======================================================================================
OFFICE
-----------------------------------------------------------------
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 104,668 $ 5,349,734 $ 5,568,170
2001 715,084 19,308,940 20,674,415
2002 413,284 12,610,975 12,796,292
2003 598,366 17,293,463 19,155,467
2004 725,405 26,734,880 28,397,582
2005 814,624 28,115,055 29,663,492
2006 508,357 15,777,230 17,669,256
2007 249,111 8,408,677 9,556,214
2008 5,526 690,634 795,402
2009 932,908 29,158,664 34,886,475
Thereafter 497,190 12,152,678 18,484,240
======================================================================================
=======================================================================================================
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 94,140 884,697 892,197
2003 50,704 599,458 599,458
2004 -- -- --
2005 -- -- --
2006 203,000 2,487,710 2,600,210
2007 50,000 475,000 675,000
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 56,747 $ 540,075 $ 540,075
2001 --
2002 23,904 207,563 207,563
2003 128,105 861,075 925,127
2004 -- -- --
2005 -- -- --
2006 21,298 227,605 288,432
2007 -- -- --
2008 -- -- --
2009 -- -- --
Thereafter -- -- --
=======================================================================================================
28
BOSTON PROPERTIES, INC.
THIRD 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 115,181 $ 3,098,664 $ 3,098,664
2001 262,256 7,888,888 7,951,762
2002 241,406 6,537,171 6,838,122
2003 176,399 4,987,331 5,645,700
2004 489,094 15,999,434 16,754,931
2005 406,638 12,863,168 14,709,966
2006 783,891 30,900,794 33,425,199
2007 532,014 19,006,080 16,295,416
2008 371,709 15,026,962 11,662,637
2009 399,964 13,458,454 20,039,418
Thereafter 1,829,377 56,011,460 65,626,481
==============================================================================================
=======================================================================================
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 159,365 $ 1,775,691 $ 1,775,691
2001 234,184 2,913,118 2,982,309
2002 175,991 2,987,413 3,033,825
2003 23,439 330,438 347,548
2004 62,821 886,369 972,346
2005 110,436 1,264,761 1,407,615
2006 -- -- --
2007 107,895 2,377,803 2,423,987
2008 -- -- --
2009 -- -- --
Thereafter 237,451 3,814,425 4,690,685
=======================================================================================
=======================================================================================
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 19,200 128,832 128,832
2004 34,863 228,725 245,374
2005 20,500 128,548 140,832
2006 -- -- --
2007 -- -- --
2008 83,608 742,152 815,347
2009
Thereafter -- -- --
=======================================================================================
29
BOSTON PROPERTIES, INC.
THIRD 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 59,960 $ 2,425,817 $ 2,476,958
2001 294,343 10,408,123 10,493,241
2002 325,647 10,933,133 11,469,778
2003 652,372 25,170,913 25,679,650
2004 726,150 29,725,794 30,328,979
2005 340,100 13,638,490 15,389,388
2006 882,337 30,523,008 34,478,477
2007 403,989 14,991,067 18,033,192
2008 167,514 6,469,189 6,642,018
2009 267,226 10,387,601 11,136,488
Thereafter 247,655 11,733,887 17,164,068
==============================================================================================
===================================================================================
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 3,000 $ 35,355 $ 35,355
2001 31,697 394,797 399,164
2002 42,486 529,525 545,994
2003 28,664 418,864 444,627
2004 -- -- --
2005 34,319 408,738 480,419
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 60,000 256,085 256,085
2002 -- -- --
2003 -- -- --
2004 200,213 1,140,883 1,217,734
2005 -- -- --
2006 -- -- --
2007 20,000 222,456 258,783
2008 -- -- --
2009 -- -- --
Thereafter -- -- --
======================================================================================
30
BOSTON PROPERTIES, INC.
THIRD 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 -- $ -- $ --
2001 128,591 7,267,795 7,288,566
2002 761,144 39,789,028 39,887,377
2003 191,231 7,692,826 7,737,240
2004 18,275 1,001,494 1,047,505
2005 55,239 2,745,242 2,893,125
2006 25,440 1,170,140 1,239,494
2007 142,895 7,003,855 8,066,889
2008 114,411 4,909,399 5,421,829
2009 36,802 2,207,096 2,618,182
Thereafter 1,351,986 66,885,432 76,835,526
==================================================================================================
=================================================================================
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 - -- --
=====================================================================================
31
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
LEASE EXPIRATIONS
PRINCETON/EAST BRUNSWICK
==================================================================================================
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 86,595 $ 2,679,051 $ 2,679,051
2001 431,633 12,652,418 12,794,543
2002 30,959 889,142 889,142
2003 121,909 3,168,639 3,338,652
2004 392,763 10,748,152 10,750,714
2005 166,774 4,305,384 4,763,388
2006 39,462 1,109,681 1,186,567
2007 56,720 1,551,749 1,672,441
2008 15,243 428,358 466,465
2009 82,242 2,287,793 2,585,095
Thereafter 835,586 21,618,228 23,020,583
==================================================================================================
=======================================================================================
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 - -- --
=======================================================================================
32
BOSTON PROPERTIES, INC.
THIRD 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 5,391 $ 130,163 $ 196,163
2001 122,856 2,546,552 3,025,093
2002 179,128 4,030,879 4,101,451
2003 187,845 3,923,456 4,467,669
2004 132,401 2,596,187 2,762,927
2005 398,717 9,394,030 9,756,389
2006 698,765 17,511,172 19,307,960
2007 44,128 1,717,204 1,676,417
2008 190,506 3,165,934 3,960,875
2009 124,408 2,084,490 2,756,908
Thereafter 14,662 165,284 179,316
==================================================================================================
=======================================================================================
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 161,000 719,476 719,476
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
Thereafter -- -- --
=======================================================================================
33
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
LONG WHARF MARRIOTT - BOSTON
====================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 93.4% 93.5% -0.1% 91.2% 89.0% 2.5%
Average Daily Rate $ 284.84 $ 249.11 14.3% $ 250.61 $ 228.96 9.5%
REVPAR $ 266.04 $ 232.92 14.2% $ 228.56 $ 203.77 12.2%
====================================================================================================================================
CAMBRIDGE CENTER MARRIOTT
====================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 91.6% 88.2% 3.9% 87.7% 85.5% 2.6%
Average Daily Rate $ 214.35 $ 187.17 14.5% $ 202.18 $ 181.65 11.3%
REVPAR $ 196.34 $ 165.08 18.9% $ 177.31 $ 155.31 14.2%
====================================================================================================================================
RESIDENCE INN BY MARRIOTT
====================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999(1) CHANGE
---- ---- ------ ---- ---- ------
Occupancy 97.6% 91.1% 7.1% 92.9% 82.8% 12.2%
Average Daily Rate $ 177.56 $ 157.08 13.0% $ 168.94 $ 151.14 11.8%
REVPAR $ 173.30 $ 143.10 21.1% $ 156.95 $ 125.14 25.4%
====================================================================================================================================
TOTAL SAME PROPERTY HOTEL PERFORMANCE
====================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2000 1999 CHANGE 2000 1999 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 93.5% 90.8% 3.0% 90.1% 86.3% 4.4%
Average Daily Rate $ 233.52 $ 204.48 14.2% $ 213.68 $ 193.30 10.5%
REVPAR $ 218.09 $ 186.35 17.0% $ 192.59 $ 167.47 15.0%
====================================================================================================================================
(1) Operational as of 2/01/99
34
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
SAME PROPERTY PERFORMANCE
OFFICE, R&D, INDUSTRIAL AND HOTEL PROPERTIES
====================================================================================================================================
OFFICE R&D INDUSTRIAL HOTEL GARAGE TOTAL
------ --- ---------- ----- ------ -----
Number of Properties 70 30 9 3 1 113
Square feet 20,416,860 1,831,901 925,726 937,874 332,442 24,444,803
Percent of in-service properties 88.7% 100.0% 100.0% 100.0% 100% 87.2%
Occupancy @ 09/30/99 98.6% 95.6% 90.4% -- -- 98.0%
Occupancy @ 09/30/00 99.3% 93.4% 89.6% -- -- 98.4%
Percent change from 3rd quarter 2000
over 3rd quarter 1999:
Revenue 5.5% -4.3% 10.4% 21.4% 44.2% 6.2%
Expense 0.0% 8.8% 9.7% 9.2% 23.0% 0.6%
Net Operating Income 8.5% -9.9% 10.6% 23.1% 52.9% 9.1%
====================================================================================================================================
SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED SEPTEMBER 30, 2000
====================================================================================================================================
OFFICE R&D INDUSTRIAL TOTAL
-------- -------- ---------- --------
Vacant space available @ 7/01/00 (sf) 92,042 160,438 90,163 342,643
Square footage of leases expiring or
terminated 07/01/00-09/30/00 389,122 30,148 6,125 425,395
-------- -------- -------- --------
Total space for lease (sf) 481,164 190,586 96,288 768,038
======== ======== ======== ========
New tenants (sf) 271,129 61,087 -- 332,216
Renewals (sf) 77,002 9,500 -- 86,502
-------- -------- -------- --------
Total space leased (sf) 348,131 70,587 -- 418,718
======== ======== ======== ========
Space available @ 9/30/00 (sf) 133,033 119,999 96,288 349,320
======== ======== ======== ========
Net increase (decrease) in leased space (sf) (40,991) 40,439 (6,125) (6,677)
Average lease term (months) 65 55 -- 64
2nd generation TI/Comm PSF $ 14.26 $ 2.20 $ -- $ 12.23
Increase in 2nd generation net rents (1) 74.4% 12.8% -- 70.1%
====================================================================================================================================
(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.)
35
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED SEPTEMBER 30, 2000
===========================================================================================================================
OFFICE R&D INDUSTRIAL TOTAL
------ --- ---------- -----
Vacant space available @ 7/01/00 (sf) 136,087 160,438 90,163 386,688
Square footage of leases expiring or
terminated 7/01/00-9/30/00 430,005 30,148 6,125 466,278
-------- -------- -------- --------
Total space for lease (sf) 566,092 190,586 96,288 852,966
======== ======== ======== ========
New tenants (sf) 314,469 61,087 -- 375,556
Renewals (sf) 77,002 9,500 -- 86,502
-------- -------- -------- --------
Total space leased (sf) 391,471 70,587 -- 462,058
======== ======== ======== ========
Space available @ 9/30/00 (sf) 174,621 119,999 96,288 390,908
======== ======== ======== ========
Net increase/(decrease) in leased space (sf) (38,534) 40,439 (6,125) (4,220)
Average lease term (months) 64 55 -- 63
2nd generation TI/Comm PSF $ 13.60 $ 2.20 $ -- $ 11.86
Increase in 2nd generation net rents (1) 73.8% 12.8% 0.0% 69.9%
===========================================================================================================================
(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).
36
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
(in thousands)
Historical Capital Expenditures
===================================================================================================================================
1995 1996 1997 1998
---- ---- ---- ----
Recurring capital expenditures $ 1,618 $ 1,083 $ 1,125 $ 3,543
========== ========== ========== ==========
Hotel improvements, equipment upgrades $ 4,420 $ 3,041 $ 2,625 $ 3,872
========== ========== ========== ==========
and replacements
===================================================================================================================================
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
===================================================================================================================================
1995 1996 1997 1998
---- ---- ---- ----
Office
Square feet 768,459 970,072 1,016,427 648,291
---------- ---------- ---------- ----------
Tenant improvement and lease commissions p.s.f $ 10.66 $ 11.40 $ 10.83 $ 9.82
---------- ---------- ---------- ----------
R&D
Square feet 177,073 337,676 169,878 113,428
---------- ---------- ---------- ----------
Tenant improvement and lease commissions p.s.f $ 6.99 $ 10.45 $ 2.22 $ 3.32
---------- ---------- ---------- ----------
Industrial
Square feet 308,388 128,148 258,795 320,608
---------- ---------- ---------- ----------
Tenant improvement and lease commissions p.s.f $ 1.00 $ 1.71 $ 0.99 $ 1.13
---------- ---------- ---------- ----------
Average tenant improvement and lease commission p.s.f. $ 7.77 $ 10.31 $ 8.06 $ 6.57
========== ========== ========== ==========
===================================================================================================================================
====================================================================================================
YTD
1999 2000
---- ----
Recurring capital expenditures $ 11,611 $ 7,635
========== ==========
Hotel improvements, equipment upgrades $ 2,346 $ 1,635
========== ==========
and replacements
====================================================================================================
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
====================================================================================================
YTD
1999 2000
---- ----
Office
Square feet 2,115,281 2,332,416
---------- ----------
Tenant improvement and lease commissions p.s.f $ 10.60 $ 13.01
---------- ----------
R&D
Square feet 167,231 467,244
---------- ----------
Tenant improvement and lease commissions p.s.f $ 1.94 $ 0.82
---------- ----------
Industrial
Square feet 163,962 181,000
---------- ----------
Tenant improvement and lease commissions p.s.f $ 0.60 $ 1.22
---------- ----------
Average tenant improvement and lease commission p.s.f. $ 9.34 $ 10.43
========== ==========
====================================================================================================
37
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
AS OF SEPTEMBER 30, 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%
265 Franklin Street (2) Sep-00 326,714 10,500,000 7,980,000 18,480,000 100%
------------ ------------ ------------ ------------ -----------
TOTAL VALUE CREATION PIPELINE - 1,179,163 $ 92,200,000 $ 7,980,000 $100,180,000 100%
============ ============ ============ ============ ===========
ACQUISITIONS
====================================================================================================================================
DISPOSITIONS
====================================================================================================================================
NET
PROPERTY DATE DISPOSED SQUARE FEET PROCEEDS BOOK VALUE GAIN (LOSS)
-------- ------------- ----------- -------- ---------- ----------
140 Kendrick Street (3) May-00 381,000 $ 15,843,000 $ 15,843,000 $ --
Metropolitan Square (4) May-00 582,194 30,870,000 30,467,000 403,000
910 and 930 Clopper Road Sep-00 240,596 24,125,000 24,948,000 (823,000)
------------- ------------- -----------
TOTAL VALUE CREATION PIPELINE $ 70,838,000 $ 71,258,000 $ (420,000)
============= ============= ===========
DISPOSITIONS
====================================================================================================================================
(1) Represents the acquisition of the joint venture partner's 75% interest. Boston Properties now owns 100% of the property.
(2) Represents the acquisition of a 35% interest in this property through a joint venture with NYSCRF.
(3) Represents the disposition of a 75% interest to a joint venture partner. Boston Properties now retains a 25% interest.
(4) Represents the disposition of a 49% interest to a joint venture partner. Boston Properties now retains a 51% interest.
38
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
AS OF SEPTEMBER 30, 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
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 Q2 2001 Q3 2001 Rockville, MD 1
Broad Run Business Park- Building E Q2 2001 Q4 2001 Dulles, VA 1
140 Kendrick Street (25% ownership) Q1 2001 Q1 2001 Needham, MA 3
Orbital Sciences Phase II - Building 2 Q2 2001 Q2 2001 Dulles, VA 1
Quorum Office Park Q3 2001 Q4 2001 Chelmsford, MA 2
111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1
5 Times Square Q4 2001 Q2 2002 New York, NY 1
One and Two Discovery Square Q4 2001 Q4 2002 Reston, VA 2
Waltham Weston Corporate Center Q4 2001 Q4 2002 Waltham, MA 1
Andover Office Park, Building 1 Q2 2001 Q2 2002 Andover, MA 1
--------
TOTAL DEVELOPMENT PROPERTIES 17
========
====================================================================================================================================
DEVELOPMENTS PLACED-IN-SERVICE DURING 2000
====================================================================================================================================
PLACED
IN SERVICE DATE LOCATION
--------------- --------
CLASS A OFFICE BUILDING
Orbital Sciences Phase I - Building 1 & 3 Q2 2000 Dulles, VA
====================================================================================================================================
====================================================================================================================================
ANTICIPATED CURRENT
INVESTMENT TOTAL PERCENTAGE
DEVELOPMENT PROPERTIES SQUARE FEET TO DATE INVESTMENT LEASED
---------------------- ----------- ------- ---------- ------
CLASS A OFFICE BUILDINGS
Market Square North (50% ownership) 409,843 $ 55,247,426 $ 61,631,239(1) 100%
New Dominion Tech Park - Building 1 235,201 37,414,759 48,770,000 100%
302 Carnegie Center 64,565 8,766,658 12,867,000 23%
2600 Tower Oaks Boulevard 178,216 19,603,954 38,295,000 71%
Broad Run Business Park- Building E 124,650 2,928,697 14,696,000 100%
140 Kendrick Street (25% ownership) 381,000 17,765,675 20,214,000(2) 100%
Orbital Sciences Phase II - Building 2 160,502 9,644,970 27,618,000 100%
Quorum Office Park 259,918 8,451,654 41,747,000 100%
111 Huntington Avenue - Prudential Center 890,000 137,613,174 291,637,000 58%
5 Times Square 1,099,154 238,108,084 536,115,000 100%
One and Two Discovery Square 362,868 2,236,418 85,994,000 0%
Waltham Weston Corporate Center 295,000 12,292,054 95,446,000 0%
Andover Office Park, Building 1 120,000 2,220,579 17,381,000 50%
-------------- -------------- -------------- --------
TOTAL DEVELOPMENT PROPERTIES 4,580,917 $ 552,294,102 $1,292,411,239 74%
============== ============== ============== ========
====================================================================================================================================
DEVELOPMENTS PLACED-IN-SERVICE DURING 2000
====================================================================================================================================
# OF INVESTMENT TOTAL PERCENTAGE
BUILDINGS SQUARE FEET TO DATE INVESTMENT LEASED
--------- ----------- ------- ---------- ------
CLASS A OFFICE BUILDING
Orbital Sciences Phase I - Building 1 & 3 2 174,832 $ 30,165,566 $ 32,000,000 100%
======== ============== ================= ================== ===========
====================================================================================================================================
(1) Represents 50% of the total anticipated project-level investment. Represents the office component.
(2) Represents 25% of the total anticipated project-level investment Net of tenant work paid by the developer until
completion that is estimated to be $4.1 million.
39
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
S VALUE CREATION PIPELINE - OWNED LAND PARCELS
AS OF SEPTEMBER 30, 2000
==============================================================
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
Rockville, MD (1) 5 96.5 1,260,000
Dulles, VA 2 76.6 937,000
Gaithersburg, MD 4 27.0 850,000
Reston, VA 2 4.7 720,000
Boston, MA 4 2.5 699,000
Herndon, VA 2 25.2 383,000
S. San Francisco, CA 2 3.6 370,000
Andover, MA 1 10.0 110,000
Springfield, VA 3 9.4 72,000
--------- --------- ----------
25 255.5 5,401,000
========= ========= ==========
==============================================================
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
AS OF SEPTEMBER 30, 2000
==============================================================
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
Dulles, VA (2) 2 82.0 2,500,000
Princeton, NJ (3) 14 149.9 1,900,000
New York, NY (4) 1 0.5 1,200,000
San Jose, CA (5) 5 3.7 841,000
Washington, DC (6) 1 1.3 550,000
Marlborough, MA (7) 1 50.0 400,000
Weston, MA (8) 1 74.0 350,000
Framingham, MA (9) 1 21.5 300,000
Cambridge, MA (10) 1 2.6 165,000
--------- --------- ----------
27 385.4 8,206,000
========= ========= ==========
==============================================================
(1) Includes 254,000 square feet of building on a 7.5 acre parcel under a
ground lease to a third party.
(2) $60.0 million subject to receiving all necessary permits and approvals.
(3) $20.00/FAR plus an earnout calculation.
(4) $159.75 million for both leasehold interest and ESAC credits.
(5) $26.3 million subject to receiving all necessary permits and approvals.
(6) We have an agreement to acquire a 25% equity interest in this site
and to develop it though our joint venture with NYSCRF.
(7) $7.2 million subject to receiving all necessary permits and approvals.
(8) $18.2 million (of which $9.1 million has already been paid) subject to
receiving all necessary permits and approvals.
(9) Subject to ground lease.
(10)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.
40
BOSTON PROPERTIES, INC.
THIRD QUARTER 2000
ACQUISITION PROPERTY PROFILE
PROPERTY NAME: 265 Franklin Street
PRODUCT TYPE: Class A Office Building
LOCATION: Boston, Massachusetts
DESCRIPTION: Class A Office Space
SIZE: 326,714 net rentable square feet
YEAR CONSTRUCTED: 1984
PURCHASE PRICE: $10.5 million (1)
CLOSING DATE: September 13, 2000
FUTURE INVESTMENT: $ 8.0 million (1)
OCCUPANCY LEVEL: 100%
NUMBER OF TENANTS: 15
FUNDING SOURCE: Cash and new mortgage debt
LARGEST TENANT:
COMPANY: SIZE: LEASE EXPIRATION:
Fidelity Properties 172,009 5/31/2001
Paine Webber 70,246 7/31/2005
Goldstein & Manello 40,038 12/31/2010
(1) Represents our 35% interest in this joint venture.
41