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
FOURTH QUARTER 2000 RESULTS
REPORTS DILUTED FFO PER SHARE OF $0.85
BOSTON, MA, JANUARY 23, 2001 - Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and year ended December 31, 2000.
Funds from Operations (FFO) for the quarter ended December 31, 2000 were $71.9
million, or $0.89 per share basic and $0.85 per share diluted, compared to FFO
of $51.6 million, or $0.76 per share basic and $0.74 per share diluted for the
quarter ended December 31, 1999. This represents a 14.9% year to year increase
in diluted FFO per share. The weighted average number of basic and diluted
shares outstanding totaled 80,885,230 and 96,008,217, respectively, for the
quarter ended December 31, 2000 and 67,906,320 and 81,248,871, respectively, for
the same quarter last year.
FFO for the year ended December 31, 2000 was $247.4 million, or $3.46 per share
basic and $3.31 per share diluted, compared to FFO of $196.1 million, or $2.96
per share basic and $2.89 per share diluted for the year ended December 31,
1999. The weighted average number of basic and diluted shares outstanding
totaled 71,424,207 and 85,723,101, respectively, for the year ended December 31,
2000 and 66,235,417 and 79,473,337, respectively, for the same period last year.
Revenues were $228.5 million and $879.4 million for the quarter and year ended
December 31, 2000, respectively, compared to revenues of $205.1 million and
$786.6 million for the same periods in 1999. Net income available to common
shareholders for the quarter and year ended December 31, 2000 was $43.2 million
and $146.4 million, respectively, compared to $34.4 million and $113.9 million
for the same periods in 1999. Net income per share available to common
shareholders for the quarter and year ended December 31, 2000 was $0.53 per
share basic and $0.52 per share diluted and $2.05 per share basic and $2.01 per
share diluted, respectively, compared to $0.51 per share basic and $0.50 per
share diluted and $1.72 per share basic and $1.71 per share diluted for the same
periods last year.
-MORE-
The reported results are unaudited and there can be no assurance that the
results will not vary from the final information for the quarter and year ended
December 31, 2000. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of December 31, 2000, the Company's portfolio consisted of 144 properties
comprising more than 37.6 million square feet, including 15 properties currently
under construction totaling 4.5 million square feet. The overall occupancy rate
for the properties in service as of December 31, 2000 was 98.9%.
Additional highlights of the fourth quarter include:
- - 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.
- - The refinancing of the mortgage loan secured by 601 and 651 Gateway 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.
- - The closing on October 6, 2000 of a joint venture with an affiliate of
Westbrook, in which Boston Properties has a 50% interest, which was formed
to develop One and Two Discovery Square, two Class A office buildings in
Reston, Virginia totaling 362,868 square feet.
- - 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 were used
to fund an escrow and will be held until the New Dominion Tech Park,
Building One is completed, which is estimated to be in First Quarter 2001.
At that time, it is anticipated that the current construction loan will be
paid off and the remaining proceeds will be available to Boston Properties.
- - The closing of a public offering on October 31, 2000 of 17,110,000 shares
of Common Stock at a price per share of $39.0625 (including 2,110,000
shares issued as a result of the exercise of an overallotment option by the
underwriters on November 2, 2000) resulting in net proceeds of
approximately $634.1 million.
- - The acquisition of the leasehold interest and ground rent credits at One
Times Square, future site of Times Square Tower in midtown Manhattan, for
approximately $165.1 million on December 1, 2000. This development will
consist of a 47-floor, 1.2 million square foot office tower. The office
space has been 53% pre-leased to Arthur Andersen.
- - The closing of a construction loan secured by the 40 Shattuck Road
development in Andover Office Park, in the amount of $16.0 million at a
rate of LIBOR + 1.75% and maturing in December 2003.
- - The closing of a construction loan secured by the Discovery Square
development in the amount of $75.0 million at a rate of LIBOR + 1.70% and
maturing in December 2003. Discovery Square is a joint venture with an
affiliate of Westbrook, in which Boston Properties has a 50% interest. This
development is 43% pre-leased.
- - The closing of a joint venture with The New York State Common Retirement
Fund, in which Boston Properties has a 25% interest, to develop 901 New
York Avenue, a Class A office building in Washington D.C. totaling 550,000
square feet on December 8, 2000.
- - The closing of a joint venture with an affiliate of Westbrook, in which
Boston Properties has a 50% interest, which was formed to develop Two
Freedom Square, a Class A office building in Reston, Virginia totaling
417,113 square feet on December 29, 2000. This development is 44%
pre-leased with an additional 17% committed.
- - The refinancing of a mortgage loan secured by 280 Park Avenue which
consisted of replacing the $220.0 million loan with a $270.0 million loan.
The new financing bears interest at a rate of 7.65% and matures in December
2011.
- - The closing of permanent mortgage financing secured by Market Square North,
a property owned 50% by Boston Properties, in the amount of $100.0 million
at a rate of 7.70% and maturing in December 2010.
- - The acquisition of a 50 acre site known as Crane Meadow in Marlborough,
Massachusetts for approximately $7.2 million on December 21, 2000. The site
is expected to support a development of 400,000 square feet.
- - The acquisition of a 3.7 acre site known as Almaden in San Jose, California
for approximately $26.2 million on December 11, 2000. The site is expected
to support a development of 841,000 square feet.
Boston Properties will conduct a conference call tomorrow, January 24, 2001 at
10:00 AM (Eastern Time) to discuss the results of this year's fourth quarter.
The number to call for this interactive teleconference is (888) 413-4411. A
replay of the conference call will be available through February 1, 2001 by
dialing (888) 266-2086 and entering the passcode 4892527.
Additionally, a copy of Boston Properties' fourth quarter 2000 "Supplemental
Operating and Financial Data" will be available on the Investor section of the
company's website at http://www.bostonproperties.com. These materials are also
available by contacting Investor Relations at 617-236-3300 or by written request
to:
Investor Relations
Boston Properties
800 Boylston Street
Boston, MA 02199
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.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------ ------------------
2000 1999 2000 1999
------ ------ ------ ------
(UNAUDITED)
-------------------------------
Revenue
Rental:
Base rent.............................................. 183,319 170,663 $ 715,358 $ 646,924
Recoveries from tenants................................ 23,736 18,864 92,692 72,742
Parking and other...................................... 12,797 11,479 50,892 45,751
--------- --------- -------- ----------
Total rental revenue................................. 219,852 201,006 858,942 765,417
Development and management services...................... 3,405 3,344 11,837 14,708
Interest and other....................................... 5,270 797 8,574 6,439
--------- --------- -------- ----------
Total revenue........................................ 228,527 205,147 879,353 786,564
--------- --------- -------- ----------
Expenses
Operating................................................ 67,335 64,947 264,701 249,268
General and administrative............................... 9,791 8,110 35,659 29,455
Interest................................................. 50,854 53,964 217,064 205,410
Depreciation and amortization............................ 36,088 31,744 133,150 120,059
--------- --------- -------- ----------
Total expenses....................................... 164,068 158,765 650,574 604,192
--------- --------- -------- ----------
Income before minority interests and joint venture income.. 64,459 46,382 228,779 182,372
Minority interest in property partnerships................. (250) (141) (932) (4,614)
Income (loss) from unconsolidated joint ventures........... 402 (180) 1,758 468
--------- --------- -------- ----------
Income before minority interest in Operating Partnership... 64,611 46,061 229,605 178,226
Minority interest in Operating Partnership................. (19,472) (16,452) (76,039) (64,917)
--------- --------- -------- ----------
Income before gain (loss) on sales of real estate.......... 45,139 29,609 153,566 113,309
Gain (loss) on sales of real estate, net................... 73 6,417 (234) 6,467
--------- --------- -------- ----------
Income before extraordinary item........................... 45,212 36,026 153,332 119,776
Extraordinary loss, net.................................... (334) - (334) -
--------- --------- -------- ----------
Net income before preferred dividend....................... 44,878 36,026 152,998 119,776
Preferred dividend......................................... (1,643) (1,654) (6,572) (5,829)
--------- --------- -------- ----------
Net income available to common shareholders................$ 43,235 $ 34,372 $146,426 $ 113,947
--------- --------- -------- ----------
--------- --------- -------- ----------
Basic earnings per share:
Income before extraordinary item.........................$ 0.54 $ 0.51 $ 2.05 $ 1.72
Extraordinary loss, net.................................. (0.01) - - -
--------- --------- -------- ----------
Net income available to common shareholders..............$ 0.53 $ 0.51 $ 2.05 $ 1.72
--------- --------- -------- ----------
--------- --------- -------- ----------
Weighted average number of common shares outstanding..... 80,885 67,906 71,424 66,235
--------- --------- -------- ----------
--------- --------- -------- ----------
Diluted earnings per share:
Income before extraordinary item.........................$ 0.52 $ 0.50 $ 2.01 $ 1.71
Extraordinary loss, net.................................. - - - -
--------- --------- -------- ----------
Net income available to common shareholders..............$ 0.52 $ 0.50 $ 2.01 $ 1.71
--------- --------- -------- ----------
--------- --------- -------- ----------
Weighted average number of common and common
equivalent shares outstanding.......................... 83,013 68,247 72,741 66,776
--------- --------- -------- ----------
--------- --------- -------- ----------
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(UNAUDITED AND IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
------------------ ----------------
2000 1999 2000 1999
------ ------- ------ ------
Income before minority interests and joint venture income.... $64,459 $46,382 $228,779 $ 182,372
Add:
Real estate depreciation and amortization.................. 36,830 31,914 134,386 119,583
Income (loss) from unconsolidated joint ventures........... 402 (180) 1,758 468
Less:
Minority property partnership's share
of Funds from Operations................................. (287) (179) (1,061) (3,681)
Preferred dividends and distributions...................... (8,246) (8,303) (32,994) (32,111)
------- ------- -------- --------
Funds from operations........................................ $93,158 $69,634 $330,868 $266,631
------- ------- -------- --------
------- ------- -------- --------
Funds from operations available to common shareholders....... $71,888 $51,555 $247,371 $196,101
------- ------- -------- --------
------- ------- -------- --------
Weighted average shares outstanding - basic.................. 80,885 67,906 71,424 66,235
------- ------- -------- --------
------- ------- -------- --------
Per share - basic.......................................... $ 0.89 $ 0.76 $ 3.46 $ 2.96
------- ------- -------- --------
------- ------- -------- --------
Weighted average shares outstanding - diluted................ 96,008 81,248 85,723 79,473
------- ------- -------- --------
------- ------- -------- --------
Per share - diluted........................................ $ 0.85 $ 0.74 $ 3.31 $ 2.89
------- ------- -------- --------
------- ------- -------- --------
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
DECEMBER 31,
-------------------------
2000 1999
----------- ----------
(UNAUDITED)
ASSETS
Real estate: $6,112,779 $5,609,424
Less: accumulated depreciation................................. (586,719) (470,591)
----------- ----------
Total real estate............................................ 5,526,060 5,138,833
Cash and cash equivalents........................................ 280,957 12,035
Escrows ......................................................... 85,561 40,254
Investments in securities........................................ 7,012 14,460
Tenant and other receivables, net................................ 26,852 28,259
Accrued rental income, net....................................... 91,684 82,228
Deferred charges, net............................................ 77,319 53,733
Prepaid expenses and other assets................................ 41,154 28,452
Investments in joint ventures.................................... 89,871 36,518
----------- ----------
Total assets................................................. $6,226,470 $5,434,772
----------- ----------
----------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable......................................... $3,357,281 $2,955,584
Unsecured line of credit....................................... - 366,000
Note payable................................................... 57,610 -
Accounts payable and accrued expenses.......................... 57,338 66,780
Dividends and distributions payable............................ 71,274 50,114
Accrued interest payable....................................... 5,599 8,486
Other liabilities.............................................. 51,926 48,282
----------- ----------
Total liabilities............................................ 3,601,028 3,495,246
----------- ----------
Commitments and contingencies.................................... - -
----------- ----------
Minority interests............................................... 877,715 781,962
----------- ----------
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, 86,630,089 and 67,910,434 issued and
outstanding in 2000 and 1999, respectively................... 866 679
Additional paid-in capital..................................... 1,674,013 1,067,778
Dividends in excess of earnings................................ (14,559) (10,893)
Unearned compensation.......................................... (848) -
Accumulated other comprehensive loss........................... (11,745) -
----------- ----------
Total stockholders' equity................................... 1,647,727 1,057,564
----------- ----------
Total liabilities and stockholders' equity................. $6,226,470 $5,434,772
----------- ----------
----------- ----------
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
Occupancy by Location
December 31, 2000 December 31, 1999
----------------- -----------------
Greater Boston................... 99.3% 96.7%
Greater Washington, D.C.......... 98.5% 96.4%
Midtown Manhattan................ 99.9% 97.8%
Baltimore, MD.................... 99.8% 99.7%
Richmond, VA..................... 100.0% 98.0%
Princeton/East Brunswick, NJ..... 98.7% 98.9%
Greater San Francisco............ 97.9% 96.4%
Bucks County, PA................. 100.0% 100.0%
----------------- -----------------
Total Portfolio................ 98.9% 97.1%
----------------- -----------------
----------------- -----------------
Occupancy by Type
December 31, 2000 December 31, 1999
----------------- -----------------
Class A Office Portfolio......... 99.0% 97.7%
R&D Portfolio.................... 98.0% 93.0%
Industrial Portfolio............. 95.9% 90.4%
----------------- -----------------
Total Portfolio................ 98.9% 97.1%
----------------- -----------------
----------------- -----------------