Exhibit 99.2
BOSTON PROPERTIES, INC.
800 BOYLSTON STREET, SUITE 400
BOSTON, MA 02199
(NYSE: BXP)
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Elaine Quinlan Marilynn Meek - General Info. (212) 661-8030
Investor Relations Claire Koeneman - Analyst (312) 266-7800
(617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030
BOSTON PROPERTIES, INC. ANNOUNCES
THIRD QUARTER 2000 RESULTS
REPORTS FFO PER SHARE OF $0.85
BOSTON, MA, OCTOBER 16, 2000 - Boston Properties, Inc. (NYSE: BXP) today
reported results for the third quarter ended September 30, 2000.
Funds from Operations (FFO) for the quarter ended September 30, 2000 were $61.5
million, or $0.90 per share basic and $0.85 per share diluted, compared to FFO
of $50.2 million, or $0.74 per share basic and $0.72 per share diluted for the
quarter ended September 30, 1999. This represents an 18.1% year to year increase
in diluted FFO per share. The weighted average number of basic and diluted
shares outstanding totaled 68,751,768 and 83,657,357, respectively, for the
quarter ended September 30, 2000 and 67,900,734 and 81,485,166, respectively,
for the same quarter last year.
FFO for the nine months ended September 30, 2000 was $175.5 million, or $2.56
per share basic and $2.46 per share diluted, compared to FFO of $144.6 million,
or $2.20 per share basic and $2.15 per share diluted for the nine months ended
September 30, 1999. The weighted average number of basic and diluted shares
outstanding totaled 68,568,410 and 82,599,673, respectively, for the nine months
ended September 30, 2000 and 65,672,095 and 76,674,436, respectively, for the
same period last year.
Revenue were $223.3 million for the quarter and $650.8 million for the nine
months ended September 30, 2000, compared to revenue of $202.1 million and
$581.4 million for the same periods in 1999. Net income available to common
shareholders for the quarter and nine months ended September 30, 2000 was $36.5
million and $103.3 million, respectively, compared to $27.4 million and $79.6
million for the same periods in 1999. Net income per share available to common
shareholders for the quarter and nine months ended September 30, 2000 were $0.53
per share basic and $0.50 per share diluted and $1.51 per share basic and $1.48
per share diluted, respectively, compared to $0.40 per share basic and diluted
and $1.21 per share basic and $1.20 per share diluted for the same periods last
year.
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
The reported results are unaudited and there can be no assurance that the
results will not vary from the final information for the quarter ended September
30, 2000. In the opinion of management, all adjustments considered necessary for
a fair presentation of these reported results have been made.
As of September 30, 2000, the Company's portfolio consisted of 145 properties
comprising more than 37.2 million square feet, including 18 properties currently
under development totaling 4.6 million square feet. The overall occupancy rate
for the properties in service as of September 30, 2000 was 98.5%.
Additional highlights of the third quarter include:
- - The closing of construction financing on August 25, 2000 totaling $32.25
million collateralized by the Quorum Office Park development project in
Chelmsford, Massachusetts. Such financing matures in August 2003 and bears
interest at a rate of LIBOR + 1.65%.
- - The acquisition of a 35% interest in 265 Franklin Street, a 326,714 square
foot Class A office building in Boston, Massachusetts, on September 13, 2000
for approximately $34.3 million. The remaining 65% interest is owned by our
joint venture partner, the New York State Common Retirement Fund.
- - On September 18, 2000, the Board of Directors of the Company declared a
dividend of $0.53 per share for the period from July 1, 2000 through
September 30, 2000, payable on October 27, 2000 to shareholders of record on
September 29, 2000.
- - The amendment of our unsecured line of credit on September 20, 2000 with
Fleet National Bank to allow us to borrow up to $605.0 million.
- - The refinancing of mortgage loans on September 28, 2000 which consisted of
replacing $52.3 million collateralized by 202, 212 and 214 Carnegie Center
with $63.0 million of loans collateralized by 202, 206 and 214 Carnegie
Center. Such financing bears interest at a rate equal to 8.13% and matures in
October 2010.
- - The disposition of 910 and 930 Clopper Road in Gaithersburg, Maryland, two
properties supporting both office and technical uses totaling 240,596 square
feet, on September 29, 2000 for approximately $24.1 million.
Transactions completed subsequent to September 30, 2000:
- - The refinancing of the mortgage loan on 601 and 651 Gateway Boulevard on
October 2, 2000 which consisted of replacing the $75.0 million mortgage loan
with a $90.0 million loan. The new financing bears interest at a rate equal
to 8.40% and matures in October 2010.
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
- - The closing on October 6, 2000 of a 50% joint venture with an affiliate of
Westbrook which was formed to develop One and Two Discovery Square, two Class
A office buildings in Reston, Virginia totaling 362,868 square feet.
- - The announcement on October 11, 2000 of a 15,000,000 share public common
stock offering with proceeds to be used to fund development activities and
paydown the unsecured line of credit.
- - The closing of bond financing on October 12, 2000 totaling $57.61 million
collateralized by the New Dominion Tech Park, Building One development
project in Herndon, Virginia. Such financing matures in October 2020 and
bears interest at a rate of 7.58%. The proceeds of $57.61 million will be
funded into an escrow and held until the New Dominion Tech Park, Building
One is completed, which is estimated to be in December 2000. At that time,
the current construction loan will be paid off and the remaining proceeds
will be available to Boston Properties.
- - The disposition of 1950 Stanford Court, a single story industrial building
totaling 53,250 square feet, and an adjacent parcel of land totaling
approximately 2 acres in Landover, MD, on October 13, 2000 for approximately
$2.2 million.
Boston Properties is a fully integrated, self-administered and self-managed real
estate investment trust that develops, redevelops, acquires, manages, operates
and owns a diverse portfolio of Class A office, industrial and hotel properties.
The Company is one of the largest owners and developers of Class A office
properties in the United States, concentrated in the Northeast Corridor from
Virginia to Greater Boston and in Greater San Francisco.
To receive Boston Properties' latest news and corporate developments via fax at
no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the Company's
web site at http://www.bostonproperties.com.
THIS PRESS RELEASE CONTAINS FORWARD-LOOKING STATEMENTS WITHIN THE MEANING OF THE
FEDERAL SECURITIES LAWS. YOU SHOULD EXERCISE CAUTION IN INTERPRETING AND RELYING
ON FORWARD-LOOKING STATEMENTS BECAUSE THEY INVOLVE KNOWN AND UNKNOWN RISKS,
UNCERTAINTIES AND OTHER FACTORS WHICH ARE, IN SOME CASES, BEYOND BOSTON
PROPERTIES CONTROL AND COULD MATERIALLY AFFECT ACTUAL RESULTS, PERFORMANCE OR
ACHIEVEMENTS. THESE FACTORS INCLUDE, WITHOUT LIMITATION, THE ABILITY TO ENTER
INTO NEW LEASES OR RENEW LEASES ON FAVORABLE TERMS, DEPENDENCE ON TENANTS'
FINANCIAL CONDITION, THE UNCERTAINTIES OF REAL ESTATE DEVELOPMENT AND
ACQUISITION ACTIVITY, THE ABILITY TO EFFECTIVELY INTEGRATE ACQUISITIONS, THE
COSTS AND AVAILABILITY OF FINANCING, THE EFFECTS OF LOCAL ECONOMIC AND MARKET
CONDITIONS, REGULATORY CHANGES AND OTHER RISKS AND UNCERTAINTIES DETAILED FROM
TIME TO TIME IN THE COMPANY'S FILINGS WITH THE SECURITIES AND EXCHANGE
COMMISSION.
FINANCIAL TABLES FOLLOW.
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
[INCOME STATEMENT]
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(undaudited and in thousands)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------------------ ------------------------------
2000 1999 2000 1999
------------- --------------- ------------- --------------
Revenue
Rental:
Base rent $ 183,749 $ 166,582 $ 532,039 $ 476,261
Recoveries from tenants 22,886 19,212 68,956 53,878
Parking and other 12,798 11,261 38,095 34,272
------------- --------------- ------------- --------------
Total rental revenue 219,433 197,055 639,090 564,411
Development and management services 2,693 3,706 8,432 11,364
Interest and other 1,187 1,376 3,304 5,642
------------- --------------- ------------- --------------
Total revenue 223,313 202,137 650,826 581,417
------------- --------------- ------------- --------------
Expenses
Operating 68,154 66,665 197,366 184,321
General and administrative 9,871 7,383 25,868 21,345
Interest 54,752 51,768 166,210 151,446
Depreciation and amortization 32,436 31,078 97,062 88,315
------------- --------------- ------------- --------------
Total expenses 165,213 156,894 486,506 445,427
------------- --------------- ------------- --------------
Income before minority interests and joint
venture income 58,100 45,243 164,320 135,990
Minority interest in property partnership (245) (179) (681) (4,473)
Income from unconsolidated joint ventures 549 206 1,356 648
------------- --------------- ------------- --------------
Income before minority interest in Operating
Partnership 58,404 45,270 164,995 132,165
Minority interest in Operating Partnership (19,627) (16,248) (56,505) (48,465)
------------- --------------- ------------- --------------
Income before gain (loss) on sales of real estate 38,777 29,022 108,490 83,700
Gain (loss) on sales of real estate, net (604) 50 (307) 50
------------- --------------- ------------- --------------
Net income before preferred dividend 38,173 29,072 108,183 83,750
Preferred dividend (1,643) (1,654) (4,929) (4,175)
============= =============== ============= ==============
Net income available to common shareholders $ 36,530 $ 27,418 $ 103,254 $ 79,575
============= =============== ============= ==============
Basic earnings per share:
Net income available to common shareholders $ 0.53 $ 0.40 $ 1.51 $ 1.21
============= =============== ============= ==============
Weighted average number of common shares
outstanding 68,752 67,901 68,568 65,672
============= =============== ============= ==============
Diluted earnings per share:
Net income available to common shareholders $ 0.50 $ 0.40 $ 1.48 $ 1.20
============= =============== ============= ==============
Weighted average number of common and common
equivalent shares outstanding 72,570 68,484 69,600 66,280
============= =============== ============= ==============
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
-------------------- ----------------------
2000 1999 2000 1999
--------- -------- --------- ---------
Income before minority interests and joint venture income $ 58,100 $ 45,243 $ 164,320 $ 135,990
Add:
Real estate depreciation and amortization 33,007 30,882 97,556 87,669
Income from unconsolidated joint ventures 549 206 1,356 648
Less:
Minority property partnerships' share
of Funds from Operations (284) (211) (774) (3,502)
Preferred dividends and distributions (8,248) (8,303) (24,748) (23,808)
--------- --------- ---------- ----------
Funds from operations $ 83,124 $ 67,817 $ 237,710 $ 196,997
========= ========= ========== ==========
Funds from operations available to common shareholders $ 61,543 $ 50,207 $ 175,526 $ 144,569
========= ========= ========== ==========
Weighted average shares outstanding - basic 68,752 67,901 68,568 65,672
========= ========= ========== ==========
Per share - basic $ 0.90 $ 0.74 $ 2.56 $ 2.20
========= ========= ========== ==========
Weighted average shares outstanding - diluted 83,657 81,485 82,600 76,674
========= ========= ========== ==========
Per share - diluted $ 0.85 $ 0.72 $ 2.46 $ 2.15
========= ========= ========== ==========
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
[CONSOLIDATED BALANCE SHEET]
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
SEPTEMBER 30, DECEMBER 31,
2000 1999
-------------- ------------
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
ASSETS
Real estate: $ 5,782,961 $ 5,609,424
Less: accumulated depreciation (554,339) (470,591)
------------ ------------
Total real estate 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 and distributions 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 in 2000 and 1999, respectively 693 679
Additional paid-in capital 1,112,855 1,067,778
Dividends in excess of earnings (11,879) (10,893)
Unearned 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
============ ============
-MORE-
Boston Properties, Inc. Announces third Quarter 2000 Results
October 16, 2000
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
September 30, 2000 December 31, 1999
--------------------- ---------------------
Greater Boston 98.0% 96.7%
Greater Washington, D.C. 97.8% 96.4%
Midtown Manhattan 99.2% 97.8%
Baltimore, MD 100.0% 99.7%
Richmond, VA 100.0% 98.0%
Princeton/East Brunswick, NJ 99.4% 98.9%
Greater San Francisco 98.5% 96.4%
Bucks County, PA 100.0% 100.0%
--------------------- ---------------------
Total Portfolio 98.5% 97.1%
===================== =====================
Occupancy by Type
September 30, 2000 December 31, 1999
--------------------- ---------------------
Class A Office Portfolio 99.2% 97.7%
R&D Portfolio 93.4% 93.0%
Industrial Portfolio 89.6% 90.4%
--------------------- ---------------------
Total Portfolio 98.5% 97.1%
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