EXHIBIT 99.1
BOSTON PROPERTIES, INC.
Supplemental Operating and Financial Data
for the Quarter Ended September 30, 2001
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
INDEX
Page Page
Company Background 3 Office/Technical Properties - Lease Expiration Roll Out 25
Investor Information 4-5 Industrial Properties - Lease Expiration Roll Out 26
Financial Highlights 6 Retail Properties - Lease Expiration Roll Out 27
Consolidated Balance Sheets 7 Grand Total - Office, Office/Technical, Industrial
Consolidated Income Statements 8 and Retail Properties 28
Boston Area Lease Expiration Roll Out 29
Funds From Operations 9 Washington DC Area Lease Expiration Roll Out 30
Financial Ratios 10 San Francisco Area Lease Expiration Roll Out 31
Capital Structure 11 New York Area Lease Expiration Roll Out 32
Debt Analysis 12-14 Princeton Area Lease Expiration Roll Out 33
Joint Ventures 15 Other Area Lease Expiration Roll Out 34
Portfolio Overview - Square Footage 16 Hotel Performance 35
Property Listing 17-20 Same Property Performance 36
Top 20 Tenants 21 "In-Service" Property Performance 37
Portfolio Overview - FFO 22 Capital Expenditures 38
Occupancy Analysis 23 Value Creation Pipeline - Acquisitions/Dispositions 39
Office Properties - Lease Expiration
Roll Out 24 Value Creation Pipeline - Development 40
Value Creation Pipeline - Land Parcels 41
2
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
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 Class A office properties in the United States,
concentrated in four core markets - Boston, Midtown Manhattan,
Washington DC, and 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. On October 31, 2000, Boston Properties successfully
completed an additional public offering resulting in 17,110,000 shares
(including the underwriters' over-allotment) being sold at $39.0625 per
share for a total offering of $668,359,000.
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, office/technical and industrial properties, and hotels in
its primary markets of Greater Boston, Greater Washington, DC, and
midtown Manhattan.
Since the Company's initial offering in June 1997, the Company has
acquired 47 properties adding approximately 17.7 million square feet to
its portfolio, representing an investment of approximately $4.7 billion,
and the Company has delivered 28 development properties adding
approximately 4.2 million square feet to its portfolio, representing an
investment of approximately $597.7 million. In addition, the Company is
constructing 13 office properties for a total anticipated investment of
approximately $1.9 billion. The Company owns or controls land where it
can develop an additional 9.2 million square feet.
3
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
INVESTOR INFORMATION
111 Huntington Avenue
Boston, MA 02199-7610
(617) 236-3300
(617) 236-3311 (fax)
Key Employees:
Mortimer B. Zuckerman Chairman of the Board
Edward H. Linde President, CEO and Director
Robert E. Burke Executive Vice President, Operations
Douglas T. Linde Senior Vice President, CFO and Treasurer
TIMING
Quarterly results for 2001 will be announced according to the following
anticipated schedule:
Year End Early February
4
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
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 2nd Quarter 1st Quarter 4th Quarter
2001 2001 2001 2000
----------- ----------- ----------- -----------
High Price $41.2600 $41.0600 $43.3125 $44.7500
Low Price $36.2000 $36.4700 $37.9200 $38.8750
Closing Price $38.1300 $40.9000 $38.4500 $43.5000
Dividends per share - annualized $2.32 $2.32 $2.12 $2.12
Closing dividend yield - annualized 6.08% 5.67% 5.51% 4.87%
Closing shares, common units and preferred
units (if converted) outstanding (thousands) 124,644 124,644 124,240 124,138
Closing market value of shares and units
outstanding (thousands) $4,752,676 $5,097,940 $4,777,028 $5,400,003
=============================================================================================================================
5
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
FINANCIAL HIGHLIGHTS
(unaudited and in thousands)
==================================================================================================================================
Three Months Ended
---------------------------------------------------------
September 30, June 30, March 31, December 31,
2001 2001 2001 2000
------------- -------- --------- ------------
INCOME ITEMS:
Revenue $264,714 $256,269 $233,456 $228,527
Net straight line rent $ 6,400 $ 6,487 $ 5,978 $ 2,608
Lease termination fees $ 4,857 $ 2,458 $ 1,163 $ 916
Capitalized interest $ 14,740 $ 15,800 $ 16,098 $ 12,812
Net Income available to common shareholders before
net derivative losses (SFAS No.133) $ 54,923 $ 52,887 $ 48,058 $ 43,235
Funds from Operations (FFO) before net derivative
losses (SFAS No.133) - basic $106,108 $100,124 $ 98,730 $ 93,158
Company's share $ 86,627 $ 81,410 $ 79,201 $ 71,888
FFO before net derivative losses (SFAS 133)
per share - basic $ 0.96 $ 0.90 $ 0.89 $ 0.89
FFO before net derivative losses (SFAS 133)
per share - diluted $ 0.91 $ 0.86 $ 0.85 $ 0.85
Dividends per share $ 0.58 $ 0.58 $ 0.53 $ 0.53
Funds available for distribution (FAD)(1) $ 73,157 $ 80,335 $ 78,835 $ 72,756
RATIOS:
Interest Coverage Ratio (excluding capitalized interest) 2.96 2.98 3.26 3.05
Interest Coverage Ratio (including capitalized interest) 2.37 2.32 2.43 2.43
FFO Payout Ratio 63.74% 67.44% 62.35% 62.35%
FAD Payout Ratio 88.01% 79.95% 74.36% 80.49%
==================================================================================================================================
=================================================================================================================================
September 30, June 30, March 31, December 31,
2001 2001 2001 2000
------------- -------- --------- ------------
CAPITALIZATION:
Total Debt $4,245,433 $4,177,670 $3,450,347 $3,414,891
Total Common Shares Outstanding @ Quarter End 90,720 90,351 89,701 86,630
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 2,625 2,625 2,625
Total Common Units Outstanding @ Quarter End 20,288 20,382 20,903 23,862
Total Preferred Units Outstanding @ Quarter End
(if converted) 11,011 11,011 11,011 11,021
Price @ Quarter End $ 38.1300 $ 40.9000 $ 38.4500 $ 43.5000
Equity Value @ Quarter End $4,752,676 $5,086,692 $4,777,028 $5,400,003
Total Market Capitalization $8,998,109 $9,264,362 $8,227,375 $8,814,894
Debt/Total Market Capitalization 47.18% 45.09% 41.94% 38.74%
=================================================================================================================================
(1) FAD is defined as FFO after adjustments for second generation lease
commissions and tenant improvements, recurring capital expenditures,
straight line rents and nonrecurring charges.
6
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
CONSOLIDATED BALANCE SHEETS
(in thousands)
===================================================================================================================================
September 30, June 30, March 31, December 31,
2001 2001 2001 2000
(unaudited) (unaudited) (unaudited)
------------- ----------- ----------- ------------
ASSETS
Real estate $ 6,147,265 $ 6,090,113 $ 5,280,149 $ 5,188,296
Development in progress 984,962 915,135 881,274 817,478
Land held for future development 165,753 160,729 123,232 107,005
Less accumulated depreciation (683,029) (647,881) (616,620) (586,719)
----------- ----------- ----------- -----------
Total real estate 6,614,951 6,518,096 5,668,035 5,526,060
Cash and cash equivalents 161,011 165,764 241,819 280,957
Escrows 20,901 31,577 29,861 85,561
Investments in securities 4,297 4,297 6,060 7,012
Tenant and other receivables, net 28,642 26,337 24,443 26,852
Accrued rental income, net 110,441 104,304 97,657 91,684
Deferred charges, net 104,370 100,804 76,209 77,319
Prepaid expenses and other assets 46,303 47,962 73,539 41,154
Investments in unconsolidated joint ventures 90,160 94,155 92,456 89,871
----------- ----------- ----------- -----------
Total assets $ 7,181,076 $ 7,093,296 $ 6,310,079 $ 6,226,470
=========== =========== =========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $ 4,245,433 $ 4,177,670 $ 3,450,347 $ 3,414,891
Unsecured Line of Credit -- -- -- --
Accounts payable and accrued expenses 71,716 61,248 58,542 57,338
Dividends and distributions payable 79,005 78,241 71,917 71,274
Interest rate contracts 32,136 19,045 19,774 --
Accrued interest payable 15,679 12,067 8,127 5,599
Other liabilities 52,969 53,365 56,943 51,926
----------- ----------- ----------- -----------
Total liabilities 4,496,938 4,401,636 3,665,650 3,601,028
----------- ----------- ----------- -----------
Commitments and contingencies -- -- -- --
----------- ----------- ----------- -----------
Minority interests 844,957 851,868 821,575 877,715
----------- ----------- ----------- -----------
Series A Convertible Redeemable Preferred Stock, liquidation
preference $50.00 per share, 2,000,000 shares issued
and outstanding 100,000 100,000 100,000 100,000
----------- ----------- ----------- -----------
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,
90,720,477, 90,350,510, 89,701,122 and 86,630,089
issued and outstanding, respectively 907 904 897 866
Additional paid-in capital 1,784,840 1,774,335 1,759,714 1,673,349
Dividends in excess of earnings (30,456) (19,193) (15,829) (13,895)
Unearned compensation (2,242) (2,386) (2,531) (848)
Accumulated other comprehensive loss (13,868) (13,868) (19,397) (11,745)
----------- ----------- ----------- -----------
Total stockholders' equity 1,739,181 1,739,792 1,722,854 1,647,727
----------- ----------- ----------- -----------
Total liabilities and stockholders' equity $ 7,181,076 $ 7,093,296 $ 6,310,079 $ 6,226,470
=========== =========== =========== ===========
===================================================================================================================================
7
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
CONSOLIDATED INCOME STATEMENTS
(in thousands, except for per share amounts)
(unaudited)
=============================================================================================================================
Three Months Ended
-------------------------------------------------
30-Sep-01 30-Jun-01 31-Mar-01 31-Dec-00
---------- --------- ----------- ----------
Revenue:
Rental
Base Rent (1) $ 219,855 $ 208,071 $ 185,691 $ 183,319
Recoveries from tenants 27,473 27,266 26,178 23,736
Parking and other 12,965 13,533 13,746 12,797
--------- --------- --------- ---------
Total rental revenue 260,293 248,870 225,615 219,852
Development and management services 2,805 3,110 3,397 3,405
Interest and other 1,616 4,289 4,444 5,270
--------- --------- --------- ---------
Total revenue 264,714 256,269 233,456 228,527
--------- --------- --------- ---------
Expenses:
Operating 81,475 76,865 70,343 67,335
General and administrative 9,819 9,880 9,950 9,791
Interest (2) 59,936 55,870 47,853 50,854
Depreciation and amortization 38,518 36,675 34,740 36,088
Loss on investments in other companies -- 6,500 -- --
--------- --------- --------- ---------
Total expenses 189,748 185,790 162,886 164,068
--------- --------- --------- ---------
Income before net derivative losses (SFAS No.133), minority
interests and income from unconsolidated joint ventures 74,966 70,479 70,570 64,459
Net derivative losses (SFAS No.133) (16,620) (4,733) (3,055) --
Minority interest in property partnerships 374 510 (255) (250)
Income from unconsolidated joint ventures 997 717 1,127 402
--------- --------- --------- ---------
Income before minority interest in Operating Partnership 59,717 66,973 68,387 64,611
Minority interest in Operating Partnership (3) (16,709) (18,138) (19,024) (19,472)
--------- --------- --------- ---------
Income before gain on sale of real estate 43,008 48,835 49,363 45,139
Gain on sale of real estate, net of minority interest -- 1,851 4,654 73
--------- --------- --------- ---------
Income before cumulative effect of a change in accounting principle 43,008 50,686 54,017 45,212
Cumulative effect of a change in accounting principle,
net of minority interest -- -- (6,767) --
--------- --------- --------- ---------
Income before extraordinary item 43,008 50,686 47,250 45,212
Extraordinary loss, net -- -- -- (334)
--------- --------- --------- ---------
Income before preferred dividend 43,008 50,686 47,250 44,878
Preferred dividend (1,653) (1,648) (1,643) (1,643)
--------- --------- --------- ---------
Net income available to common shareholders $ 41,355 $ 49,038 $ 45,607 $ 43,235
========= ========= ========= =========
INCOME PER SHARE OF COMMON STOCK
Net income available to common shareholders per share - basic $ 0.46 $ 0.54 $ 0.51 $ 0.53
========= ========= ========= =========
Net income available to common shareholders per share - diluted $ 0.45 $ 0.53 $ 0.50 $ 0.52
========= ========= ========= =========
=============================================================================================================================
(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
revenue by $6,400, $6,487, $5,978 and $2,608 for the three months ended
September 30, 2001, June 30, 2001, March 31, 2001 and December 31, 2000,
respectively.
(2) Excludes capitalized interest of $14,740, $15,800, $16,098 and $12,812 for
the three months ended September 30, 2001, June 30, 2001, March 31, 2001 and
December 31, 2000, respectively.
(3) Equals minority interest percent of 18.36%, 18.69%, 19.78% and 22.83%,
respectively of income before minority interest in Operating Partnership
after deduction for preferred dividends and distributions.
8
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
===================================================================================================================================
Three months ended
-------------------------------------------------
30-Sep-01 30-Jun-01 31-Mar-01 31-Dec-00
--------- --------- --------- ---------
Income from operations before net derivative losses (SFAS No.133),
minority interests and income from unconsolidated joint ventures $ 74,966 $ 70,479 $ 70,570 $ 64,459
Add:
Real estate depreciation and amortization (1) 39,360 37,599 35,557 36,830
Income from unconsolidated joint ventures 997 717 1,127 402
Less:
Net derivative losses (SFAS No.133) 16,620 4,733 3,055 --
Minority property partnership's share of funds from operations 832 411 303 287
Preferred dividends and distributions 8,383 8,260 8,221 8,246
-------- -------- -------- --------
Funds from Operations (FFO) 89,488 95,391 95,675 93,158
Add:
Net derivative losses (SFAS No.133) 16,620 4,733 3,055 --
-------- -------- -------- --------
FFO before net derivative losses (SFAS No.133) $106,108 $100,124 $ 98,730 $ 93,158
======== ======== ======== ========
FFO available to common shareholders before net derivative
losses (SFAS No. 133) (2) $ 86,627 $ 81,410 $ 79,201 $ 71,888
======== ======== ======== ========
FFO per share before net derivative losses (SFAS No.133) - basic $ 0.96 $ 0.90 $ 0.89 $ 0.89
======== ======== ======== ========
Weighted average shares outstanding - basic 90,519 89,990 88,688 80,885
======== ======== ======== ========
FFO per share before net derivative losses (SFAS No.133) - diluted $ 0.91 $ 0.86 $ 0.85 $ 0.85
======== ======== ======== ========
FFO per share after net derivative losses (SFAS No.133) - diluted $ 0.78 $ 0.82 $ 0.83 $ 0.85
======== ======== ======== ========
Weighted average shares outstanding - diluted 105,812 105,259 104,160 96,008
======== ======== ======== ========
===================================================================================================================================
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
================================================================================================================================
September 30, 2001 June 30, 2001
------------------------------- ----------------------------
Income Shares Income Shares
(Numerator) (Denominator) (Numerator) (Denominator)
---------- ------------ ---------- ------------
Basic FFO before net derivative losses (SFAS No.133) $106,108 110,876 $100,124 110,676
Effect of Dilutive Securities
Convertible Preferred Units 6,730 11,011 6,612 11,011
Convertible Preferred Stock 1,653 2,625 1,648 2,625
Stock Options and other -- 1,657 -- 1,633
--------- -------- --------- --------
Diluted FFO before net derivative losses (SFAS No.133) $114,491 126,169 $108,384 125,945
========= ======== ========= ========
Company's share of diluted FFO before net derivative losses
(SFAS No.133) (3) $ 96,017 105,812 $ 90,581 105,259
========= ======== ========= ========
FFO per share before net derivative losses (SFAS No.133) - basic $ 0.96 $ 0.90
========= =========
FFO per share before net derivative losses (SFAS No.133) - diluted $ 0.91 $ 0.86
========= =========
================================================================================================================================
=================================================================================================================================
March 31, 2001 December 31, 2000
---------------------------- ----------------------------
Income Shares Income Shares
(Numerator) (Denominator) (Numerator) (Denominator)
---------- ------------ ---------- -------------
Basic FFO before net derivative losses (SFAS No.133) $ 98,730 110,556 $ 93,158 104,818
Effect of Dilutive Securities
Convertible Preferred Units 6,578 11,011 6,603 10,370
Convertible Preferred Stock 1,643 2,625 1,643 2,625
Stock Options and other -- 1,837 -- 2,128
---------- --------- -------- ---------
Diluted FFO before net derivative losses (SFAS No.133) $106,951 126,029 $101,404 119,941
========== ========= ======== =========
Company's share of diluted FFO before net derivative losses
(SFAS No.133) (3) $ 88,379 104,160 $ 81,169 96,008
========== ========= ======== =========
FFO per share before net derivative losses (SFAS No.133) - basic $ 0.89 $ 0.89
========== ========
FFO per share before net derivative losses (SFAS No.133) - diluted $ 0.85 $ 0.85
========== ========
=================================================================================================================================
(1) Real estate depreciation includes the Company's share of joint venture real
estate depreciation of $1,394, $1,376, $1,260 and $1,189, less corporate
related depreciation of $552, $452, $443 and $447, for the three months
ended September 30, 2001, June 30, 2001, March 31, 2001, and December 31,
2000, respectively.
(2) Based on weighted average shares for the quarter. Company's share for the
quarter ended September 30, 2001, June 30, 2001, March 31, 2001, and
December 31, 2000 was 81.64%, 81.31%, 80.22% and 77.17%, respectively.
(3) Based on weighted average diluted shares for the quarter. Company's share
for the quarter ended September 30, 2001, June 30, 2001, March 31, 2001 and
December 31, 2000 was 83.87%, 83.58%, 82.65% and 80.05%, respectively.
9
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
FINANCIAL RATIOS
==============================================================================================================================
Three months ended
-----------------------------------------------
9/30/2001 6/30/2001 3/31/2001 12/31/2000
--------- --------- --------- ----------
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1)
Debt Service Coverage Ratio 2.54 2.54 2.74 2.56
(EBITDA + Income from Unconsolidated Joint Ventures)/
(Interest + Principal)
Interest Coverage Ratio (excluding capitalized interest) 2.96 2.98 3.26 3.05
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Interest Coverage Ratio (including capitalized interest) 2.37 2.32 2.43 2.43
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Return on Shareholder's Equity 16.89% 16.06% 15.99% 17.50%
(EBITDA/Average Equity (book value)) (%)
Return on Real Estate Investments 10.56% 10.70% 10.95% 11.26%
(EBITDA/Average Real Estate Investments (book value)) (%)
Dividend Payout Ratio 63.74% 67.44% 62.35% 62.35%
(Dividends Declared/FFO) (%)
==============================================================================================================================
(1) EBITDA is equal to earnings before interest, taxes, depreciation and
amortization.
10
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
CAPITAL STRUCTURE
DEBT
(in thousands)
=========================================================================
AGGREGATE PRINCIPAL
SEPTEMBER 30, 2001
-------------------
Mortgage Loans $4,245,433
Unsecured Line of Credit --
----------
Total Debt $4,245,433
==========
==========================================================================
EQUITY
(in thousands)
===================================================================================================
Common
Shares & Units Stock $ Value
Outstanding Equivalents Equivalent (1)
-------------- ----------- --------------
Common Stock 90,720 90,720 $3,459,154
Preferred Stock 2,000 2,625 100,091
Operating Partnership Units 20,288 20,288 773,581
Preferred Operating Partnership Units 9,346 11,011 419,849
------- ----------
Total Equity 124,644 $4,752,676
======= ==========
Total Market Capitalization $8,998,109
==========
===================================================================================================
(1) Value based on September 30, 2001 closing price of $38.13.
11
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)
===================================================================================================================================
YEAR 2001 (1) 2002 2003 2004 2005 THEREAFTER TOTAL
---- -------- ---- ---- ---- ---- ---------- -----
Amount $47,033 $257,712 $773,655 $288,723 $277,155 $2,601,155 $4,245,433
===================================================================================================================================
(1) Represents the period from October 1, 2001 through December 31, 2001.
UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003
(in thousands)
============================================================================================================
OUTSTANDING LETTERS OF REMAINING
FACILITY @ 9/30/01 CREDIT CAPACITY
-------- ----------- ---------- ---------
$605,000 $ -- $4,270 $600,730
============================================================================================================
UNSECURED AND SECURED DEBT ANALYSIS
============================================================================================================
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Unsecured Debt 0.00% 0.00% 1.5 years
Secured Debt 100.00% 6.81% 5.9 years
------ ---- ---------
Total Debt 100.00% 6.81% 5.9 years
====== ==== =========
============================================================================================================
FLOATING AND FIXED RATE DEBT ANALYSIS
==========================================================================================================
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Floating Rate Debt 18.50% 4.73% 1.7 years
Fixed Rate Debt 81.50% 7.28% 6.9 years
------ ---- ---------
Total Debt 100.00% 6.81% 5.9 years
====== ==== =========
==========================================================================================================
12
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS
(in thousands)
===================================================================================================================================
Property 2001 (1) 2002 2003 2004 2005 Thereafter Total
------------------------------------------------ ---------- --------- -------- -------- -------- ----------- -------
Citigroup Center $ 1,283 $ 5,365 $ 5,763 $ 6,191 $ 6,651 $498,073 $523,326
Embarcadero Center One, Two and Federal Reserve 1,009 4,207 4,498 4,809 5,141 290,286 309,950
Prudential Center 635 4,020 4,299 4,591 4,919 270,580 289,044
280 Park Avenue 618 2,595 2,800 3,022 3,261 256,111 268,407
5 Times Square -- -- 257,009 -- -- -- 257,009
599 Lexington Avenue -- -- -- -- 225,000 -- 225,000
111 Huntington Avenue -- 159,673 -- -- -- -- 159,673
Embarcadero Center Four 748 3,098 3,315 3,544 3,797 138,118 152,620
875 Third Avenue 555 2,132 146,766 -- -- -- 149,453
Embarcadero Center Three 496 2,069 2,206 2,351 2,506 135,397 145,025
Times Square Tower -- -- -- 135,820 -- -- 135,820
Two Independence Square 321 1,285 113,808 -- -- -- 115,414
Riverfront Plaza 614 2,560 2,735 2,921 3,120 101,914 113,864
Democracy Center 407 1,703 1,828 1,961 2,103 98,407 106,409
Embarcadero Center West Tower 325 1,358 1,449 1,546 1,649 90,416 96,743
100 East Pratt Street 276 1,717 1,836 1,964 2,100 82,757 90,650
601 and 651 Gateway Boulevard 181 760 826 899 977 85,783 89,426
One Independence Square -- -- 75,000 -- -- -- 75,000
Reservoir Place 485 2,669 2,859 3,061 3,279 60,067 72,420
One & Two Reston Overlook 181 759 818 65,908 -- -- 67,666
2300 N Street -- -- 66,000 -- -- -- 66,000
202, 206 & 214 Carnegie Center 135 564 610 663 719 59,841 62,532
New Dominion Technology Park, Building 1 -- 61 102 91 654 56,702 57,610
Capital Gallery 283 1,191 1,293 1,404 1,524 50,651 56,346
504,506 & 508 Carnegie Center 143 910 979 1,052 1,136 43,450 47,670
===================================================================================================================================
(1) Represents the period from October 1, 2001 through December 31, 2001.
13
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS (CONTINUED)
(in thousands)
===================================================================================================================================
PROPERTY 2001 (1) 2002 2003 2004 2005 THEREAFTER TOTAL
------------------------------------ ---------- -------- -------- --------- -------- ------------- --------
Waltham Weston Corporate Center $ -- $ -- $ -- $ 38,926 $ -- -- $ 38,926
10 and 20 Burlington Mall Road 37,000 (2) -- -- -- -- -- 37,000
10 Cambridge Center 81 514 559 607 659 32,929 35,349
1301 New York Avenue 269 1,129 1,217 1,315 1,417 26,591 31,938
Sumner Square 107 447 481 518 557 28,180 30,290
Eight Cambridge Center 95 477 516 557 601 25,837 28,083
510 Carnegie Center 80 508 547 588 635 24,938 27,296
2600 Tower Oaks Boulevard -- 26,481 -- -- -- -- 26,481
Lockheed Martin Building 90 562 601 641 685 23,313 25,892
Orbital Sciences - Phase 1 70 25,644 -- -- -- -- 25,714
Quorum Office Park -- -- 25,615 -- -- -- 25,615
University Place 97 611 655 702 752 22,009 24,826
Reston Corporate Center 86 537 574 612 654 21,966 24,429
Orbital Sciences - Phase 2 -- -- 22,654 -- -- -- 22,654
191 Spring Street 61 374 407 443 482 20,773 22,540
Bedford Business Park 92 583 634 690 751 18,567 21,317
NIMA Building 74 465 497 530 566 19,034 21,166
Andover Office Park, Building One -- -- 14,191 -- -- -- 14,191
101 Carnegie Center 52 322 348 375 406 6,622 8,125
Montvale Center 35 146 160 173 189 6,762 7,465
302 Carnegie Center -- -- 6,969 -- -- -- 6,969
Hilltop Business Center 42 175 187 200 214 4,812 5,630
201 Carnegie Center 7 41 44 48 51 269 460
------- -------- -------- -------- -------- ---------- ----------
$47,033 $257,712 $773,655 $288,723 $277,155 $2,601,155 $4,245,433
======= ======== ======== ======== ======== ========== ==========
(1) Represents the period from October 1, 2001 through December 31, 2001.
(2) This loan was refinanced on October 1, 2001 with a new loan amount of $40.0
million maturing in 2011.
14
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
JOINT VENTURES
(unaudited and in thousands)
as of September 30, 2001
====================================================================================================================
One Market 140 265 901
Freedom Square Metropolitan Kendrick Franklin Discovery
Square North Square Street Street Square (2)
-------- --------- ------------ -------- -------- -----------
Total Equity (1) $ 1,458 $ 14,334 $ 33,059 $ 5,888 $ 11,923 $ 6,401
Mortgage/Construction loans payable (1) $ 19,175 $ 49,548 $ 70,630 $ 14,229 $ 24,500 $ 18,686
BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00%
====================================================================================================================
Two Two
New York Freedom
Avenue (2) Square (2) Combined
---------- ----------- ---------
Total Equity (1) $ 11,966 $ 5,131 $ 90,160
Mortgage/Construction loans payable (1) $ -- $ 15,540 $212,308
BXP's ownership percentage 25.00% 50.00%
====================================================================================================================
RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES
for the three months ended september 30, 2001
==================================================================================================================================
One Market 140 265
Freedom Square Metropolitan Kendrick Franklin Discovery
Square North Square Street Street (4) Square (2)
------- ------ ------------ -------- ---------- ----------
REVENUE
Total revenue $ 3,913 $ 4,839 $ 5,744 $ 2,672 $ 2,660 $ --
------- ------- ------- ------- ------- ------
EXPENSES
Operating 910 1,624 1,729 441 926 --
Interest 1,493 1,910 2,876 1,080 328 --
Depreciation and amortization 652 629 1,325 395 405 --
------- ------- ------- ------- ------- ------
Total expenses 3,055 4,163 5,930 1,916 1,659 --
------- ------- ------- ------- ------- ------
Net income $ 858 $ 676 $ (186) $ 756 $ 1,001 $ --
======= ======= ======= ======= ======= ======
BXP's ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00%
======= ======= ======= ======= ======= ======
BXP's share of net income $ 215 $ 338 $ (95) $ 189 $ 350 $ --
======= ======= ======= ======= ======= ======
BXP's share of Funds from Operations $ 378 $ 653 $ 580 $ 288 $ 492 $ --
======= ======= ======= ======= ======= ======
==================================================================================================================================
===================================================================================================================================
901 Two
New York Freedom
Avenue (2) Square (2) Combined
---------- ---------- --------
REVENUE
Total revenue $ -- $ -- $ 19,828 (3)
------ ----- ---------
EXPENSES
Operating -- -- 5,630
Interest -- -- 7,687
Depreciation and amortization -- -- 3,406
------ ----- ---------
Total expenses -- -- 16,723
------ ----- ---------
Net income $ -- $ -- $ 3,105
====== ====== =========
BXP's ownership percentage 25.00% 50.00%
====== ====== =========
BXP's share of net income $ -- $ -- $ 997
====== ====== =========
BXP's share of Funds from Operations $ -- $ -- $ 2,391
====== ====== =========
==================================================================================================================================
(1) Represents the Company's share.
(2) Property is currently under development.
(3) The impact of the straight-line rent adjustment increased revenue by $1,231
for the three months ended September 30, 2001.
(4) The Company is currently repositioning this property.
15
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
PORTFOLIO OVERVIEW - SQUARE FOOTAGE
RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES
BY LOCATION AND TYPE OF PROPERTY
==================================================================================================================================
GEOGRAPHIC AREA OFFICE (1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL
--------------- ---------- ---------------- ---------- ----- ----------
Greater Boston 6,382,608 (2) 545,206 169,273 7,097,087 24.65%
Greater Washington 6,657,124 (3) 1,143,148 -- 7,800,272 27.09%
Greater San Francisco 4,461,472 144,366 280,213 4,886,051 16.97%
Midtown Manhattan 4,449,977 -- -- 4,449,977 15.45%
Princeton/East Brunswick, NJ 2,325,093 -- -- 2,325,093 8.08%
Baltimore, MD 1,174,629 -- -- 1,174,629 4.08%
Richmond, VA 899,604 -- -- 899,604 3.12%
Bucks County, PA -- -- 161,000 161,000 0.56%
---------- --------- ------- ---------- ------
26,350,507 1,832,720 610,486 28,793,713 100.00%
========== ========= ======= ========== ======
% of Total 91.51% 6.37% 2.12% 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 17,645 6,017,423
======= =========
=================================================================================================================================
(1) Includes retail square footage of approximately 1,000,000.
(2) Includes 326,128 square feet at 265 Franklin Street which is 35% owned by
Boston Properties and 380,987 square feet at 140 Kendrick Street which is
25% owned by Boston Properties.
(3) Includes 410,308 square feet at One Freedom Square which is 25% owned by
Boston Properties, 587,217 square feet at Metropolitan Square which is 51%
owned by Boston Properties, and 401,279 square feet at Market Square North
which is 50% owned by Boston Properties.
16
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
PROPERTY LISTING
AS OF SEPTEMBER 30, 2001
===========================================================================================================================
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED %
---------- --------- ----------- ---------
GREATER BOSTON
Office
The Prudential Center CBD Boston MA 3 2,152,129 94.1%
265 Franklin Street
(35% ownership) CBD Boston MA 1 326,128 49.0
One Cambridge Center East Cambridge MA 1 215,385 98.1
Three Cambridge Center East Cambridge MA 1 107,484 100.0
Eight Cambridge Center East Cambridge MA 1 177,226 100.0
Ten Cambridge Center East Cambridge MA 1 152,664 100.0
Eleven Cambridge Center East Cambridge MA 1 79,616 100.0
University Place Mid-Cambridge MA 1 195,282 100.0
Reservoir Place Route 128 Mass Turnpike MA 1 529,835 83.4
204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 100.0
140 Kendrick Street
(25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0
170 Tracer Lane Route 128 Mass Turnpike MA 1 73,203 61.4
Waltham Office Center Route 128 Mass Turnpike MA 3 131,479 92.1
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0
200 West Street Route 128 Mass Turnpike MA 1 248,048 92.5
10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 85.7
Bedford Business Park Route 128 Northwest MA 1 90,000 100.0
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0
91 Hartwell Avenue Route 128 Northwest MA 1 122,135 100.0
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0
33 Hayden Avenue Route 128 Northwest MA 1 79,564 100.0
Lexington Office Park Route 128 Northwest MA 2 167,293 100.0
191 Spring Street Route 128 Northwest MA 1 162,700 100.0
181 Spring Street Route 128 Northwest MA 1 53,595 100.0
201 Spring Street Route 128 Northwest MA 1 102,500 100.0
40 Shattuck Road Route 128 Northwest MA 1 119,499 83.3
Quorum Office Park Route 128 Northwest MA 1 129,959 100.0
Newport Office Park Route 128 South MA 1 168,829 100.0
----------- ----------------------------
37 6,382,608 92.4
----------- ----------------------------
Office/Technical
Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0
Bedford Business Park Route 128 Northwest MA 2 383,704 100.0
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0
164 Lexington Road Route 128 Northwest MA 1 64,140 100.0
----------- ----------------------------
5 545,206 100.0
----------- ----------------------------
Industrial
40-46 Harvard Street Route 128 Southwest MA 1 169,273 89.8
----------- ----------------------------
Total Greater Boston: 43 7,097,087 92.9%
=========================================
=============================================================================================================================
=============================================================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED SF
-----------
GREATER BOSTON
Office
The Prudential Center $ 37.62
265 Franklin Street (35% ownership) 56.79
One Cambridge Center 41.21
Three Cambridge Center 26.66
Eight Cambridge Center 29.77
Ten Cambridge Center 31.74
Eleven Cambridge Center 40.71
University Place 32.17
Reservoir Place 34.65
204 Second Avenue 26.46
140 Kendrick Street (25% ownership) 27.20
170 Tracer Lane 39.88
Waltham Office Center 28.54
195 West Street 46.01
200 West Street 31.97
10 & 20 Burlington Mall Road 31.52
Bedford Business Park 21.39
32 Hartwell Avenue 16.34
91 Hartwell Avenue 31.76
92 Hayden Avenue 21.78
100 Hayden Avenue 32.20
33 Hayden Avenue 24.89
Lexington Office Park 30.40
191 Spring Street 30.34
181 Spring Street 35.47
201 Spring Street 32.10
40 Shattuck Road 25.23
Quorum Office Park 18.65
Newport Office Park 23.87
------------
$ 33.66
------------
Office/Technical
Fourteen Cambridge Center 19.32
Bedford Business Park 14.40
17 Hartwell Avenue 10.25
164 Lexington Road 9.31
------------
$ 14.18
------------
Industrial
40-46 Harvard Street $ 7.49
------------
=============================================================================================================================
17
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
PROPERTY LISTING
AS OF SEPTEMBER 30, 2001
===================================================================================================================================
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED %
---------- --------- ----------- ----------
GREATER WASHINGTON, DC
Office
2300 N Street West End Washington DC 1 276,930 100.0%
One Independence Square Southwest Washington DC 1 337,794 100.0
Two Independence Square Southwest Washington DC 1 579,665 100.0
Capital Gallery Southwest Washington DC 1 396,894 100.0
500 E Street, N. W. Southwest Washington DC 1 242,769 100.0
Metropolitan Square
(51% ownership) East End Washington DC 1 587,217 97.7
1301 New York Avenue East End Washington DC 1 188,358 100.0
Market Square North
(50% ownership) East End Washington DC 1 401,279 100.0
Sumner Square CBD Washington DC 1 207,620 99.8
Decoverly Two Montgomery County MD 1 77,747 100.0
Decoverly Three Montgomery County MD 1 77,040 100.0
Democracy Center Montgomery County MD 3 681,329 90.1
Montvale Center Montgomery County MD 1 120,823 100.0
2600 Tower Oaks Boulevard Montgomery County MD 1 178,899 70.3
Orbital Sciences Campus Loudoun County 3 337,228 100.0
The Arboretum Fairfax County VA 1 95,584 100.0
One Freedom Square
(25% ownership) Fairfax County VA 1 410,308 100.0
One Reston Overlook Fairfax County VA 1 312,685 100.0
Two Reston Overlook Fairfax County VA 1 131,594 100.0
New Dominion Technology Park Fairfax County VA 1 235,201 100.0
Reston Corporate Center Fairfax County VA 2 261,046 100.0
Lockheed Martin Building Fairfax County VA 1 255,244 100.0
NIMA Building Fairfax County VA 1 263,870 100.0
-------------------------------------------
28 6,657,124 98.0
-------------------------------------------
Office/Technical
Fullerton Square Fairfax County VA 2 179,453 81.9
Sugarland Business Park,
Building One Fairfax County VA 1 52,797 100.0
Sugarland Business Park,
Building Two Fairfax County VA 1 59,215 100.0
7435 Boston Boulevard Fairfax County VA 1 103,557 100.0
7451 Boston Boulevard Fairfax County VA 1 47,001 100.0
7450 Boston Boulevard Fairfax County VA 1 62,402 100.0
7374 Boston Boulevard Fairfax County VA 1 57,321 100.0
8000 Grainger Court Fairfax County VA 1 90,465 100.0
7500 Boston Boulevard Fairfax County VA 1 79,971 100.0
7501 Boston Boulevard Fairfax County VA 1 75,756 100.0
7601 Boston Boulevard Fairfax County VA 1 103,750 100.0
7600 Boston Boulevard Fairfax County VA 1 69,832 100.0
7375 Boston Boulevard Fairfax County VA 1 26,865 93.4
8000 Corporate Court Fairfax County VA 1 52,539 100.0
7700 Boston Boulevard Fairfax County VA 1 82,224 100.0
-------------------------------------------
16 1,143,148 97.0
-------------------------------------------
Total Greater Washington: 44 7,800,272 97.8%
===========================================
===================================================================================================================================
===================================================================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED SF
-----------
GREATER WASHINGTON, DC
Office
2300 N Street $ 49.41
One Independence Square 40.34
Two Independence Square 37.56
Capital Gallery 34.83
500 E Street, N. W. 31.69
Metropolitan Square (51% ownership) 35.35
1301 New York Avenue 30.30
Market Square North (50% ownership) 41.94
Sumner Square 32.49
Decoverly Two 23.15
Decoverly Three 24.39
Democracy Center 28.03
Montvale Center 22.02
2600 Tower Oaks Boulevard 30.88
Orbital Sciences Campus 22.72
The Arboretum 25.95
One Freedom Square (25% ownership) 32.82
One Reston Overlook 21.55
Two Reston Overlook 32.31
New Dominion Technology Park 26.70
Reston Corporate Center 31.09
Lockheed Martin Building 41.67
NIMA Building 45.57
-----------------
$ 33.61
-----------------
Office/Technical
Fullerton Square 11.92
Sugarland Business Park, Building One 22.19
Sugarland Business Park, Building Two 21.87
7435 Boston Boulevard 14.07
7451 Boston Boulevard 15.29
7450 Boston Boulevard 16.55
7374 Boston Boulevard 13.90
8000 Grainger Court 12.73
7500 Boston Boulevard 14.16
7501 Boston Boulevard 23.33
7601 Boston Boulevard 14.20
7600 Boston Boulevard 14.75
7375 Boston Boulevard 15.66
8000 Corporate Court 9.49
7700 Boston Boulevard 21.49
-----------------
$ 15.72
-----------------
===================================================================================================================================
18
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
PROPERTY LISTING
AS OF SEPTEMBER 30, 2001
NUMBER OF
SUB MARKET BUILDINGS SQUARE FEET
---------- --------- -----------
MIDTOWN MANHATTAN
Office
599 Lexington Avenue Park Avenue NY 1 1,000,497
280 Park Avenue Park Avenue NY 1 1,166,079
Citigroup Center Park Avenue NY 1 1,578,623
875 Third Avenue East Side NY 1 704,778
-----------------------------------
Total Midtown Manhattan: 4 4,449,977
===================================
Princeton/East Brunswick, NJ
Office
101 Carnegie Center Princeton NJ 1 123,659
104 Carnegie Center Princeton NJ 1 102,830
105 Carnegie Center Princeton NJ 1 69,648
201 Carnegie Center Princeton NJ -- 6,500
202 Carnegie Center Princeton NJ 1 128,705
210 Carnegie Center Princeton NJ 1 161,112
211 Carnegie Center Princeton NJ 1 47,025
212 Carnegie Center Princeton NJ 1 148,045
214 Carnegie Center Princeton NJ 1 152,214
206 Carnegie Center Princeton NJ 1 161,763
302 Carnegie Center Princeton NJ 1 65,063
502 Carnegie Center Princeton NJ 1 116,374
510 Carnegie Center Princeton NJ 1 234,160
504 Carnegie Center Princeton NJ 1 121,990
506 Carnegie Center Princeton NJ 1 146,362
508 Carnegie Center Princeton NJ 1 131,085
One Tower Center East Brunswick NJ 1 408,558
-----------------------------------
Total Princeton/East Brunswick, NJ: 16 2,325,093
===================================
GREATER SAN FRANCISCO
Office
Embarcadero Center One CBD San Francisco CA 1 827,480
Embarcadero Center Two CBD San Francisco CA 1 779,386
Embarcadero Center Three CBD San Francisco CA 1 773,516
Embarcadero Center Four CBD San Francisco CA 1 949,806
Federal Reserve CBD San Francisco CA 1 149,592
West Tower CBD San Francisco CA 1 475,488
The Gateway South San Francisco CA 2 506,204
-----------------------------------
8 4,461,472
===================================
Office/Technical
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: 20 4,886,051
===================================
=================================================================================================================================
ANNUALIZED
REVENUE
PER
OCCUPIED % OCCUPIED SF
---------- -----------
MIDTOWN MANHATTAN
Office
599 Lexington Avenue 100.0 $ 56.19
280 Park Avenue 100.0 46.64
Citigroup Center 99.9 53.37
875 Third Avenue 99.7 49.61
------------------------------------------------
Total Midtown Manhattan: 99.9% $ 51.65
================================================
Princeton/East Brunswick, NJ
Office
101 Carnegie Center 100.0% 26.91
104 Carnegie Center 100.0 30.35
105 Carnegie Center 100.0 28.19
201 Carnegie Center 100.0 23.79
202 Carnegie Center 100.0 28.91
210 Carnegie Center 100.0 29.32
211 Carnegie Center 100.0 24.09
212 Carnegie Center 78.3 29.89
214 Carnegie Center 100.0 28.38
206 Carnegie Center 100.0 27.51
302 Carnegie Center 70.9 32.77
502 Carnegie Center 100.0 28.19
510 Carnegie Center 100.0 25.82
504 Carnegie Center 100.0 28.28
506 Carnegie Center 100.0 28.27
508 Carnegie Center 100.0 26.74
One Tower Center 71.8 30.88
------------------------------------------------
Total Princeton/East Brunswick, NJ: 92.8% $ 28.43
================================================
GREATER SAN FRANCISCO
Office
Embarcadero Center One 97.1% 40.74
Embarcadero Center Two 90.4 45.35
Embarcadero Center Three 97.2 40.82
Embarcadero Center Four 96.6 54.40
Federal Reserve 100.0 47.11
West Tower 98.9 48.84
The Gateway 92.6 35.77
------------------------------------------------
95.6% $ 45.02
================================================
Office/Technical
Hilltop Office Center 90.0% $ 14.64
------------------------------------------------
Industrial
560 Forbes Blvd 100.0% 9.95
430 Rozzi Place 100.0 11.38
2391 West Winton 72.8 4.72
------------------------------------------------
78.6% $ 6.27
------------------------------------------------
94.5%
================================================
=================================================================================================================================
19
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
PROPERTY LISTING
AS OF SEPTEMBER 30, 2001
ANNUALIZED
REVENUE
NUMBER OF PER
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF
---------- --------- ----------- ---------- -----------
BALTIMORE, MD
Office
Candler Building Baltimore MD 1 539,306 99.5% $17.98
100 East Pratt Street Baltimore MD 1 635,323 99.7% 29.85
--------------------------------------------------
Total Baltimore, MD: 2 1,174,629 99.6% $24.40
==================================================
RICHMOND, VA
Office
Riverfront Plaza Richmond VA 1 899,604 98.6% $23.17
==================================================
BUCKS COUNTY, PA
Industrial
38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $4.49
==================================================
Total In-Service Properties: 131 28,793,713 96.1%
==================================================
===============================================================================================================================
20
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
TOP 20 TENANTS BY SQUARE FEET LEASED
===============================================================================
TENANT SQ. FT. % OF PORTFOLIO
------ ------- --------------
1 U.S. Government 2,294,441 7.97%
2 Lockheed Martin Corporation 716,653 2.49%
3 Citibank, N.A. 639,971 2.22%
4 Gillette Company 488,177 1.70%
5 Shearman & Sterling 436,358 1.52%
6 Parametric Technology Corp. (1) 380,987 1.32%
7 Washington Group International 365,245 1.27%
8 Orbital Sciences Corporation 337,228 1.17%
9 First Union 325,396 1.13%
10 Hunton & Williams 322,829 1.12%
11 TRW, Inc. 317,921 1.10%
12 T. Rowe Price Associates, Inc. 304,129 1.06%
13 Marsh & McLennan, Inc. 302,842 1.05%
14 Digitas 279,182 0.97%
15 Deutsche Bank 270,528 0.94%
16 Accenture (1) 265,622 0.92%
17 Credit Suisse First Boston Group 260,363 0.90%
18 Covance, Inc. 258,831 0.90%
19 John Hancock Advisors 233,516 0.81%
20 Kirkland & Ellis (2) 229,832 0.80%
===============================================================================
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
===============================================================================
TENANT SQ. FT.
------ -------
Ernst & Young 1,062,203
Andersen 620,947
Tellabs 259,918
Palmer & Dodge 204,412
===============================================================================
(1) These tenants occupy space in properties in which Boston Properties has a
25% interest.
(2) Includes 144,222 sf of space in a property in which Boston Properties has
a 51% interest.
21
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
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, 2001
==============================================================================================================================
Office/
Geographic Area Office (2) Technical Industrial Hotel Total
--------------- ---------- --------- ---------- ----- -----
Greater Boston 16.4% 1.0% 0.1% 4.2% 21.7%
Greater Washington 19.9% 2.3% -- -- 22.2%
Greater San Francisco 20.6% 0.3% 0.2% -- 21.1%
Midtown Manhattan 23.3% -- -- -- 23.3%
Princeton/East Brunswick, NJ 5.8% -- -- -- 5.8%
Baltimore, MD 3.2% -- -- -- 3.2%
Richmond, VA 2.6% -- -- -- 2.6%
Bucks County, PA -- -- 0.1% -- 0.1%
---- --- --- --- -----
Total 91.8% 3.6% 0.4% 4.2% 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 and Embarcadero Center).
22
BOSTON PROPERTIES, INC.
THIRD QUARTER
OCCUPANCY ANALYSIS
SAME PROPERTY OCCUPANCY - BY LOCATION
==============================================================================================
LOCATION 30-SEP-01 30-SEP-00
-------- --------- ---------
Greater Boston 94.9% 97.9%
Greater Washington 98.3% 98.9%
Midtown Manhattan 99.9% 99.2%
Baltimore, MD 99.6% 100.0%
Princeton/East Brunswick, NJ 93.5% 99.4%
Richmond, VA 98.6% 100.0%
Greater San Francisco 94.5% 98.5%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 96.6% 98.8%
===== =====
==============================================================================================
SAME PROPERTY - BY TYPE OF PROPERTY
===============================================================================
30-SEP-01 30-SEP-00
--------- ---------
Total Office Portfolio 96.7% 99.2%
Total Office/Technical Portfolio 97.3% 93.4%
Total Industrial Portfolio 87.3% 96.9%
---- ----
Total Portfolio 96.6% 98.8%
==== ====
===============================================================================
23
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE OFFICE PROPERTIES
LEASE EXPIRATIONS
<Table>
<Caption>
=======================================================================================================
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
------------- ------------------ ------------------ -------------------- --------------------
2001 117,085 $ 4,206,533 $ 4,206,533 0.48%
2002 1,258,270 44,594,470 45,328,144 5.19%
2003 1,706,060 58,143,805 59,798,971 7.04%
2004 2,526,342 92,276,978 94,032,631 10.42%
2005 2,406,414 84,901,761 89,076,095 9.93%
2006 3,541,391 137,129,655 146,193,521 14.60%
2007 1,511,598 60,263,241 60,690,482 6.24%
2008 1,243,045 47,591,921 48,570,003 5.13%
2009 2,126,134 75,810,906 85,391,872 8.77%
2010 1,117,789 49,563,476 56,731,066 4.61%
Thereafter 6,683,635 256,803,962 308,799,560 27.58%
=======================================================================================================
</Table>
OCCUPANCY BY LOCATION
<Table>
<Caption>
===================================================================================
30-SEP-01 30-SEP-00
--------- ---------
Greater Boston 92.4% 99.4%
Greater Washington 98.0% 99.3%
Midtown Manhattan 99.9% 99.2%
Baltimore, MD 99.6% 100.0%
Richmond, VA 98.6% 100.0%
Princeton/East Brunswick, NJ 92.8% 99.4%
Greater San Francisco 95.6% 98.5%
Bucks County, PA n/a n/a
---- ----
Total Office Portfolio 96.2%* 99.2%*
==== ====
===================================================================================
</Table>
* Includes approximately 1,000,000 of retail square footage.
24
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE OFFICE/TECHNICAL PROPERTIES
LEASE EXPIRATIONS
<Table>
<Caption>
=====================================================================================================================
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
------------- ------------------ ------------------ -------------------- --------------------
2001 78,643 $1,129,190 $1,129,190 4.37%
2002 368,257 5,153,897 5,259,179 20.46%
2003 89,758 1,387,875 1,473,948 4.99%
2004 84,867 1,315,644 1,432,369 4.72%
2005 162,809 2,105,327 2,281,670 9.05%
2006 320,098 4,209,720 4,443,462 17.79%
2007 157,895 3,073,693 3,313,849 8.77%
2008 -- -- -- --
2009 -- -- -- --
2010 79,971 1,132,318 1,135,499 4.44%
Thereafter 457,379 8,032,342 9,174,849 25.41%
=====================================================================================================================
</Table>
OCCUPANCY BY LOCATION
<Table>
<Caption>
===================================================================================
30-SEP-01 30-SEP-00
--------- ---------
Greater Boston 100.0% 85.3%
Greater Washington 97.0% 96.9%
Midtown Manhattan 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 90.0% 97.1%
Bucks County, PA n/a n/a
----- ----
Total Office/Technical Portfolio 97.3% 93.4%
===== ====
===================================================================================
</Table>
25
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE INDUSTRIAL PROPERTIES
LEASE EXPIRATIONS
<Table>
<Caption>
========================================================================================================================
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
------------- ------------------ ------------------ -------------------- --------------------
2001 -- $ -- $ -- --
2002 184,904 931,346 931,346 34.68%
2003 128,105 930,042 930,042 24.02%
2004 200,213 1,026,461 1,093,712 37.55%
2005 -- -- -- --
2006 -- -- -- --
2007 20,000 227,568 258,279 3.76%
2008 -- -- -- --
2009 -- -- -- --
2010 -- -- -- --
Thereafter -- -- -- --
========================================================================================================================
</Table>
OCCUPANCY BY LOCATION
<Table>
<Caption>
====================================================================================
30-SEP-01 30-SEP-00
--------- ---------
Greater Boston 89.8% 93.0%
Greater Washington n/a 66.7%
Midtown Manhattan 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 78.6% 100.0%
Bucks County, PA 100.0% 100.0%
----- -----
Total Industrial Portfolio 87.3% 89.6%
===== =====
====================================================================================
</Table>
26
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE RETAIL PROPERTIES
LEASE EXPIRATIONS
<Table>
<Caption>
=====================================================================================================================
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
------------- ------------------ ------------------ -------------------- --------------------
2001 39,505 $ 3,629,908 $ 3,629,908 3.53%
2002 48,561 3,214,876 3,380,135 4.34%
2003 197,229 6,121,475 6,180,887 17.64%
2004 129,011 7,269,207 7,431,689 11.54%
2005 94,290 3,562,087 3,672,787 8.43%
2006 87,263 3,856,093 4,010,630 7.80%
2007 57,870 2,656,066 2,870,388 5.18%
2008 44,581 2,408,165 2,584,715 3.99%
2009 38,007 1,539,203 1,667,803 3.40%
2010 101,681 2,788,413 3,908,641 9.10%
Thereafter 279,901 8,924,687 10,621,351 25.04%
=====================================================================================================================
</Table>
27
BOSTON PROPERTIES
THIRD QUARTER 2001
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
LEASE EXPIRATION
<Table>
<Caption>
==================================================================================================================
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
------------- ------------------ ------------------ -------------------- --------------------
2001 235,233 $ 8,965,631 $ 8,965,631 0.85%
2002 1,859,992 53,894,589 54,898,804 6.72%
2003 2,121,152 66,583,196 68,383,848 7.66%
2004 2,940,433 101,888,291 103,990,401 10.62%
2005 2,663,513 90,569,175 95,030,553 9.62%
2006 3,948,752 145,195,468 154,647,612 14.26%
2007 1,747,363 66,220,567 67,132,998 6.31%
2008 1,287,626 50,000,086 51,154,718 4.65%
2009 2,164,141 77,350,109 87,059,675 7.82%
2010 1,299,441 53,484,207 61,775,205 4.69%
Thereafter 7,420,915 273,760,990 328,595,760 26.80%
==================================================================================================================
</Table>
OCCUPANCY BY LOCATION
<Table>
<Caption>
===================================================================================
30-SEP-01 30-SEP-00
Greater Boston 92.9% 98.0%
Greater Washington 97.8% 97.8%
Midtown Manhattan 99.9% 99.2%
Baltimore, MD 99.6% 100.0%
Richmond, VA 98.6% 100.0%
Princeton/East Brunswick, NJ 92.8% 99.4%
Greater San Francisco 94.5% 98.5%
Bucks County, PA 100.0% 100.0%
----- -----
Total Portfolio 96.1% 98.5%
===== =====
===================================================================================
</Table>
28
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE GREATER BOSTON PROPERTIES
LEASE EXPIRATIONS
GREATER BOSTON
<Table>
<Caption>
==============================================================================
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
------------- ------------------ ------------------ --------------------
2001 50,182 $ 1,481,857 $ 1,481,858
2002 341,320 10,538,671 10,770,900
2003 498,356 15,511,932 16,671,429
2004 589,989 21,141,131 21,973,246
2005 938,026 35,053,255 36,300,176
2006 601,175 20,911,277 22,212,955
2007 247,367 8,574,736 10,042,621
2008 80,965 2,294,220 2,489,103
2009 924,497 32,076,139 36,080,490
2010 145,404 5,501,382 6,246,107
Thereafter 918,507 26,143,257 31,061,455
<Caption>
OFFICE/TECHNICAL
---------------------------------------------------------------------------------
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
------------- ------------------ ------------------ --------------------
2001 -- $ -- $ --
2002 94,140 904,444 904,444
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 253,704 3,203,655 3,316,155
2007 50,000 753,141 953,141
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter 147,362 2,870,602 3,377,099
==================================================================================
</Table>
<Table>
<Caption>
=============================================================================
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 23,904 208,316 208,316
2003 128,105 930,042 930,042
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
<Caption>
RETAIL
------------------------------------------------------------
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
------------- ------------------ ----------------- --------------------
2001 25,667 $2,958,436 $2,958,436
2002 3,062 1,258,377(1) 1,402,101(1)
2003 165,438 4,261,921 4,279,962
2004 80,579 5,579,590 5,694,313
2005 58,554 1,842,031 1,868,286
2006 31,957 1,589,990 1,626,765
2007 -- -- --
2008 5,466 472,814 472,814
2009 -- -- --
2010 43,859 715,563 1,494,873
Thereafter 162,475 3,427,296 3,438,139
==============================================================================
</Table>
(1) Includes $928,000 (current) and $1,072,000 (at expiration) of annual
revenue from Prudential Center retail kiosks for which there is zero
square footage assigned.
29
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE GREATER WASHINGTON PROPERTIES
LEASE EXPIRATIONS
GREATER WASHINGTON
<Table>
<Caption>
====================================================================================
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
------------- ------------------ ------------------ --------------------
2001 11,859 $ 364,750 $ 364,750
2002 207,933 5,857,781 5,966,286
2003 137,100 3,501,055 3,668,982
2004 505,276 16,668,929 17,143,250
2005 464,298 15,692,326 17,193,913
2006 929,647 36,390,530 39,536,045
2007 536,956 19,636,895 16,836,300
2008 399,355 15,993,036 12,695,840
2009 433,461 14,426,364 16,173,691
2010 441,849 16,478,467 19,903,064
Thereafter 2,330,290 71,449,848 84,275,176
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------
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
------------- ------------------ ------------------ --------------------
2001 67,043 $ 968,170 $ 968,170
2002 234,631 3,723,163 3,822,924
2003 54,894 832,518 901,098
2004 74,667 1,142,316 1,217,161
2005 131,290 1,654,110 1,785,894
2006 64,394 970,789 1,088,191
2007 107,895 2,320,551 2,360,708
2008 -- -- --
2009 -- -- --
2010 79,971 1,132,318 1,135,499
Thereafter 310,017 5,161,740 5,797,750
================================================================================
</Table>
<Table>
<Caption>
=============================================================================
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
<Caption>
RETAIL
------------------------------------------------------------
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
------------- ------------------ ----------------- --------------------
2001 5,485 $ 259,260 $ 259,260
2002 6,549 260,145 264,286
2003 622 21,148 21,782
2004 9,960 237,259 248,402
2005 3,998 123,365 127,687
2006 4,111 152,247 158,482
2007 18,191 288,508 299,309
2008 16,338 553,099 656,226
2009 2,996 33,600 33,600
2010 16,553 359,064 429,747
Thereafter 28,959 1,044,166 1,399,950
=============================================================================
</Table>
30
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
LEASE EXPIRATIONS
GREATER SAN FRANCISCO
<Table>
<Caption>
==============================================================================
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
------------- ------------------ ------------------ --------------------
2001 40,578 $ 1,800,880 $ 1,800,880
2002 244,451 9,189,421 9,208,855
2003 629,550 26,207,357 26,487,236
2004 745,026 31,570,149 31,750,201
2005 297,568 13,659,762 14,364,676
2006 922,628 42,893,999 45,172,210
2007 418,305 18,081,927 19,148,723
2008 153,762 6,329,494 6,619,534
2009 234,997 9,935,847 10,544,558
2010 121,282 7,798,953 9,149,037
Thereafter 208,274 13,199,489 19,739,789
<Caption>
OFFICE/TECHNICAL
-------------------------------------------------------------
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
------------- ------------------- ------------------ --------------------
2001 11,600 $161,020 $161,020
2002 39,486 526,289 531,810
2003 34,864 555,357 572,850
2004 10,200 173,328 215,208
2005 31,519 451,217 495,777
2006 2,000 35,276 39,116
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
==============================================================================
</Table>
<Table>
<Caption>
=============================================================================
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 200,213 1,026,461 1,093,712
2005 -- -- --
2006 -- -- --
2007 20,000 227,568 258,279
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
<Caption>
RETAIL
-----------------------------------------------------------
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
------------- ------------------ ----------------- --------------------
2001 7,971 $ 395,106 $ 395,106
2002 31,916 1,552,651 1,568,515
2003 21,978 1,161,029 1,172,941
2004 23,479 1,130,516 1,145,926
2005 26,823 1,175,900 1,211,900
2006 28,363 1,266,021 1,292,664
2007 17,990 962,872 1,044,866
2008 19,545 1,233,730 1,287,431
2009 35,011 1,505,603 1,634,203
2010 30,749 1,259,632 1,416,260
Thereafter 20,287 954,543 1,096,683
=============================================================================
</Table>
31
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
LEASE EXPIRATIONS
MIDTOWN MANHATTAN
<Table>
<Caption>
==============================================================================
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
------------- ------------------ ------------------ --------------------
2001 7,091 $ 352,018 $ 352,018
2002 251,993 14,061,877 14,248,378
2003 141,831 5,681,664 5,681,664
2004 162,695 8,761,442 8,837,594
2005 82,289 4,093,507 4,132,331
2006 274,256 14,821,267 15,123,297
2007 177,449 9,568,032 9,952,151
2008 401,004 19,300,195 22,244,391
2009 237,304 12,079,832 13,886,588
2010 250,022 15,044,867 16,278,696
Thereafter 2,325,130 121,320,212 146,586,237
<Caption>
OFFICE/TECHNICAL
-------------------------------------------------------------
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
==============================================================================
</Table>
<Table>
<Caption>
=============================================================================
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
<Caption>
RETAIL
-------------------------------------------------------------
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
------------- ------------------ ----------------- --------------------
2001 -- $ -- $ --
2002 1,010 40,760 42,289
2003 5,215 591,162 617,082
2004 3,800 245,514 266,293
2005 2,819 329,901 365,763
2006 15,992 624,800 709,684
2007 14,989 1,158,582 1,265,108
2008 3,232 148,523 168,244
2009 -- -- --
2010 9,895 439,659 548,883
Thereafter 68,180 3,498,682 4,686,579
=============================================================================
</Table>
32
BOSTON PROPERTIES
THIRD QUARTER 2001
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
LEASE EXPIRATIONS
PRINCETON/EAST BRUNSWICK
<Table>
<Caption>
==============================================================================
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
------------- ------------------ ------------------ --------------------
2001 7,375 $ 207,027 $ 207,027
2002 31,228 726,497 726,497
2003 116,898 3,184,048 3,184,048
2004 400,103 11,489,219 11,545,320
2005 229,378 6,774,182 6,867,526
2006 84,989 2,621,410 2,771,048
2007 81,983 2,505,514 2,776,017
2008 -- -- --
2009 170,255 5,022,635 5,801,021
2010 145,675 4,588,490 5,002,844
Thereafter 890,056 24,437,106 26,806,218
<Caption>
OFFICE/TECHNICAL
-------------------------------------------------------------
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
==============================================================================
</Table>
<Table>
<Caption>
=============================================================================
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
------------- ------------------- ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
<Caption>
RETAIL
-----------------------------------------------------------
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
------------- ------------------ ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
=============================================================================
</Table>
33
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
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 XPIRING LEASES WITH FUTURE STEP-UPS
------------- ------------------ ------------------ --------------------
2001 -- $ -- $ --
2002 181,345 4,220,223 4,407,229
2003 182,325 4,057,748 4,105,613
2004 123,253 2,646,108 2,783,020
2005 394,855 9,628,729 10,217,475
2006 728,696 19,491,172 21,377,965
2007 49,538 1,896,137 1,934,671
2008 207,959 3,674,976 4,521,135
2009 125,620 2,270,089 2,905,525
2010 13,557 151,318 151,318
Thereafter 11,378 254,050 330,685
=====================================================================================
=============================================================================================
OFFICE/TECHNICAL
---------------------------------------------------------------------------
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
------------- ------------------ ------------------ --------------------
2001 -- $ -- $ --
2002 -- -- --
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
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
------------- ------------------ ------------------ --------------------
2001 -- $ -- $ --
2002 161,000 723,030 723,030
2003 -- -- --
2004 -- -- --
2005 -- -- --
2006 -- -- --
2007 -- -- --
2008 -- -- --
2009 -- -- --
2010 -- -- --
Thereafter -- -- --
======================================================================================
=========================================================================================
RETAIL
-------------------------------------------------------------------------
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
------------- ------------------ ------------------ --------------------
2001 382 $ 17,106 $ 17,106
2002 6,024 102,944 102,944
2003 3,976 86,215 89,120
2004 11,193 76,329 76,756
2005 2,096 90,890 99,151
2006 6,840 223,036 223,036
2007 6,700 246,104 261,104
2008 -- -- --
2009 -- -- --
2010 625 14,496 18,877
Thereafter -- -- --
========================================================================================
34
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
Long Wharf Marriott - Boston
==================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2001 2000 CHANGE 2001 2000 CHANGE
---- ---- ------ ---- ---- -------
Occupancy 91.5% 93.4% -2.0% 81.9% (1) 91.2% -10.2%
Average Daily Rate $ 243.68 $ 284.84 -14.5% $ 240.69 $ 250.61 -4.0%
REVPAR $ 222.97 $ 266.04 -16.2% $ 197.13 $ 228.56 -13.8%
==================================================================================================================================
Cambridge Center Marriott
===================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2001 2000 CHANGE 2001 2000 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 83.3% 91.6% -9.1% 81.6% 87.7% -7.0%
Average Daily Rate $185.35 $214.35 -13.5% $194.92 $202.18 -3.6%
REVPAR $154.46 $196.34 -21.3% $159.05 $177.31 -10.3%
===================================================================================================================================
Residence Inn by Marriott
===================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2001 2000 CHANGE 2001 2000 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 91.6% 97.6% -6.1% 88.9% 92.9% -4.3%
Average Daily Rate $162.81 $177.56 -8.3% $162.71 $168.94 -3.7%
REVPAR $149.19 $173.30 -13.9% $144.65 $156.95 -7.8%
===================================================================================================================================
Total Same Property Hotel Performance
===================================================================================================================================
THIRD QUARTER THIRD QUARTER PERCENT YTD YTD PERCENT
2001 2000 CHANGE 2001 2000 CHANGE
---- ---- ------ ---- ---- ------
Occupancy 88.2% 93.5% -5.7% 83.2% 90.1% -7.7%
Average Daily Rate $202.87 $233.52 -13.1% $205.62 $213.68 -3.8%
REVPAR $179.49 $218.09 -17.7% $170.55 $195.59 -12.8%
===================================================================================================================================
(1) Rooms renovation project was underway.
35
BOSTON PROPERTIES,INC.
THIRD QUARTER 2001
SAME PROPERTY PERFORMANCE
OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES
===================================================================================================================================
OFFICE OFFICE/TECHNICAL INDUSTRIAL HOTEL TOTAL
------ ---------------- ---------- ----- -----
Number of Properties 84 30 5 3 122
Square feet 22,774,236 1,832,720 610,486 937,874 26,155,316
Percent of in-service properties 86.4% 100.0% 100.0% 100.0% 88.0%
Occupancy @ 9/30/00 99.2% 93.4% 96.9% -- 98.8%
Occupancy @ 9/30/01 96.7% 97.3% 87.3% -- 96.6%
Percent change from 3rd quarter 2001
over 3rd quarter 2000
Revenue 6.0% 31.5% -6.8% -8.7% 5.9%
Expense 7.0% -7.9% -3.0% -4.8% 6.5%
Net Operating Income 5.5% 43.1% -7.5% -9.4% 5.6%
===================================================================================================================================
SAME PROPERTY LEASE ANALYSIS - SEPTEMBER 30, 2001
===================================================================================================================================
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL
------ ---------------- ---------- -----
Vacant space available @ 07/01/01 (sf) 516,660 27,536 77,264 621,460
Square footage of leases expiring or
terminated 07/01/01-09/30/01 1,064,279 133,002 -- 1,197,281
---------- ---------- ---------- ----------
Total space for lease (sf) 1,580,939 160,538 77,264 1,818,741
========== ========== ========== ==========
New tenants (sf) 793,941 3,100 -- 797,041
Renewals (sf) 39,019 108,815 -- 147,834
---------- ---------- ---------- ----------
Total space leased (sf) 832,960 111,915 -- 944,875
========== ========== ========== ==========
Space available @ 9/30/01 (sf) 747,979 48,623 77,264 873,866
========== ========== ========== ==========
Net increase (decrease) in leased space (sf) (231,319) (21,087) -- (252,406)
Average lease term (months) 96 25 -- 90
2nd generation TI/Comm PSF $ 28.15 $ 2.30 $ -- $ 25.09
Increase in 2nd generation net rents (1) 39.4% 22.8% -- 38.7%
===================================================================================================================================
(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 2001
ALL "IN-SERVICE" PROPERTIES - QUARTER ENDED SEPTEMBER 30, 2001
==================================================================================================================================
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL
------ ---------------- ---------- -----
Vacant space available @ 07/01/01 (sf) 1,060,919 27,536 77,264 1,165,719
Square footage of leases expiring or
terminated 07/01/01-09/30/01 1,101,707 133,002 -- 1,234,709
---------- ------------ ------- ----------
Total space for lease (sf) 2,162,626 160,538 77,264 2,400,428
========== ============ ======= ==========
New tenants (sf) 1,120,896 3,100 -- 1,123,996
Renewals (sf) 39,019 108,815 -- 147,834
---------- ------------ ------- ----------
Total space leased (sf) 1,159,915 111,915 -- 1,271,830 (2)
========== ============ ======= ==========
Space available @ 09/30/01 (sf) 1,002,711 48,623 77,264 1,128,598
========== ============ ======= ==========
Net increase/(decrease) in leased space (sf) 58,208 (21,087) -- 37,121
Average lease term (months) 96 25 -- 90
2nd generation TI/Comm PSF $ 28.15 $ 2.30 $ -- $ 25.09
Increase in 2nd generation net rents (1) 39.4% 22.8% -- 38.7%
==================================================================================================================================
(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).
(2) Total space leased of 1,271,830 sf equals 326,955 sf 1st generation and
944,875 sf 2nd generation.
37
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
(IN THOUSANDS)
HISTORICAL CAPITAL EXPENDITURES
===================================================================================================================================
YTD 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999 1998 1997
-------- ------- ------- ------- ---- ---- ---- ----
Recurring capital expenditures $ 8,472 $ 2,309 $ 3,425 $ 2,738 $11,201 $11,611 $ 3,543 $ 1,125
======== ======= ======= ======= ======= ======= ======= =======
Hotel improvements, equipment upgrades $ 7,439 $ 1,089 $ 4,069 $ 2,281 $ 5,697 $ 2,346 $ 3,872 $ 2,625
and replacements ======== ======= ======= ======= ======= ======= ======= =======
===================================================================================================================================
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
===================================================================================================================================
YTD 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999
--------- ------- ------- ------- ----
Office
Square feet 1,894,378 832,960 497,756 563,662 2,913,599 2,115,281
--------- ----------- --------- --------- ---------- ----------
Tenant improvement and lease
commissions p.s.f. $ 19.93 $ 28.15 $ 12.06 $ 14.72 $ 13.82 $ 10.60
--------- ----------- --------- --------- ---------- ----------
Office/Technical
Square feet 156,898 111,915 10,696 34,287 694,536 167,231
--------- ----------- --------- --------- ---------- ----------
Tenant improvement and lease
commissions p.s.f. $ 2.56 $ 2.30 $ 3.34 $ 3.19 $ 2.95 $ 1.94
--------- ----------- --------- --------- ---------- ----------
Industrial
Square feet $ -- -- -- -- 209,125 163,962
--------- ----------- --------- --------- ---------- ----------
Tenant improvement and lease
commissions p.s.f. $ -- $ -- $ -- $ -- $ 1.38 $ 0.60
--------- ----------- --------- --------- ---------- ----------
Average tenant improvement and
lease commission p.s.f. $ 18.60 $ 25.09 $ 11.88 $ 14.05 $ 11.16 $ 9.34
========= =========== ========= ========= ========== ==========
===================================================================================================================================
==============================================================================================
1998 1997
---- ----
Office
Square feet 648,291 1,016,427
-------- ----------
Tenant improvement and lease commissions p.s.f. $ 9.82 $ 10.83
-------- ----------
Office/Technical
Square feet 113,428 169,878
-------- ----------
Tenant improvement and lease commissions p.s.f. $ 3.32 $ 2.22
-------- ----------
Industrial
Square feet 320,608 258,795
-------- ----------
Tenant improvement and lease commissions p.s.f. $ 1.13 $ 0.99
-------- ----------
Average tenant improvement and lease commission p.s.f. 6.57 $ 8.06
======== ==========
==============================================================================================
38
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
as of September 30, 2001
ACQUISITIONS
===================================================================================================================================
ANTICIPATED
INITIAL FUTURE TOTAL CURRENT
PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT OCCUPANCY
-------- ------------- ----------- ---------- ------------ ---------- ---------
Citigroup Center Apr-01 1,578,623 755,000,000 -- 755,000,000 100%
----------- ------------ -------- ------------- ----
Total Value Creation Pipeline - 1,578,623 $755,000,000 $ -- $755,000,000 100%
Acquisitions =========== ============ ======== ============= ====
===================================================================================================================================
DISPOSITIONS
===================================================================================================================================
NET
PROPERTY DATE DISPOSED SQUARE FEET NET PROCEEDS BOOK VALUE GAIN
-------- ------------- ----------- ------------ ---------- ----------
25-33 Dartmouth Street Mar-01 78,045 $ 6,612,676 $811,158 $5,801,518
Maryland Industrial Park,
Bldgs. 2&3 Jun-01 183,945 7,574,494 5,297,462 2,277,032
------- ----------- ---------- -----------
Total Dispositions 261,990 $14,187,170 $6,108,620 $8,078,550
======= =========== ========== ===========
==================================================================================================================================
39
BOSTON PROPERTIES, INC.
THIRD QUARTER
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
as of September 30, 2001
==================================================================================================================================
DEVELOPMENT PROPERTIES INITIAL OCCUPANCY STABILIZATION DATE LOCATION
---------------------- ----------------- ------------------ --------
Quorum Office Park Q3 2001 Q4 2001 Chelmsford, MA
111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA
Broad Run Business Park- Building E Q4 2001 Q2 2002 Dulles, VA
One and Two Discovery Square (50% ownership) Q4 2001 Q4 2002 Reston, VA
ITT Educational Services Q4 2001 Q4 2001 Springfield, VA
5 Times Square Q1 2002 Q2 2002 New York, NY
Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA
7702 Boston Boulevard Q1 2002 Q1 2002 Springfield, VA
611 Gateway Boulevard Q2 2002 Q1 2004 S. San Francisco, CA
Two Freedom Square (50% ownership) Q3 2002 Q1 2003 Reston, VA
Shaws Supermarket Q4 2002 Q4 2001 Boston, MA
Times Square Tower Q4 2003 Q2 2004 New York, NY
Total Development Properties
==================================================================================================================================
==================================================================================================================================
ANTICIPATED CURRENT
# OF INVESTMENT TOTAL PERCENTAGE
DEVELOPMENT PROPERTIES BUILDINGS SQUARE FEET TO DATE INVESTMENT LEASED
---------------------- --------- ----------- ---------- ----------- ----------
Quorum Office Park 1 129,959 $ 18,204,772 $ 20,417,204 100%
111 Huntington Avenue - Prudential Center 1 919,229 251,348,425 290,000,000 93%
Broad Run Business Park- Building E 1 124,650 11,192,527 19,946,000 0%
One and Two Discovery Square (50% ownership) 2 362,868 24,504,106 41,204,097 (1) 49%
ITT Educational Services 1 32,114 1,797,980 5,740,000 100%
5 Times Square 1 1,099,154 380,749,116 536,115,000 100%
Waltham Weston Corporate Center 1 295,000 47,894,645 95,446,000 17%
7702 Boston Boulevard 1 43,171 278,318 7,286,409 100%
611 Gateway Boulevard 1 249,732 30,372,778 77,523,240 0%
Two Freedom Square (50% ownership) 1 417,113 21,863,164 79,848,921 (1) 58%
Shaws Supermarket 1 57,235 3,478,239 23,868,520 100%
Times Square Tower 1 1,221,058 217,974,439 653,500,000 51%
------ ---------- --------------- -------------- -------
Total Development Properties 13 4,951,283 $ 1,009,658,509 $1,850,895,391 67%
------ ---------- --------------- -------------- -------
==================================================================================================================================
DEVELOPMENTS PLACED-IN-SERVICE DURING 2001
===================================================================================================================
PLACED STABILIZATION # OF
CLASS A OFFICE BUILDING IN SERVICE DATE DATE LOCATION BUILDINGS
----------------------- --------------- ------------- -------- ---------
302 Carnegie Center Q1 2001 Q1 2002 Princeton, NJ 1
New Dominion Tech Park - Building 1 Q1 2001 Q1 2001 Herndon, VA 1
40 Shattuck Road Q2 2001 Q2 2002 Andover, MA 1
2600 Tower Oaks Boulevard Q2 2001 Q2 2002 Rockville, MD 1
Orbital Sciences Phase II - Building 2 Q3 2001 Q3 2001 Dulles, VA 1
Quorum Office Park Q3 2001 Q3 3001 Chelmsford, MA 1
-----
Total Developments Placed in Service 6
=====
===================================================================================================================
===================================================================================================================
INVESTMENT TOTAL PERCENTAGE
CLASS A OFFICE BUILDING SQUARE FEET TO DATE INVESTMENT LEASED
----------------------- ----------- ---------- ---------- ----------
302 Carnegie Center 65,063 $ 10,614,982 $ 13,435,000 71%
New Dominion Tech Park - Building 1 235,201 47,182,816 48,770,000 100%
40 Shattuck Road 119,499 14,814,750 17,381,000 83%
2600 Tower Oaks Boulevard 178,899 35,119,046 38,295,000 70%
Orbital Sciences Phase II - Building 2 160,502 27,638,249 29,900,000 100%
Quorum Office Park 129,959 17,584,217 20,417,204 100%
-------- ------------ ------------ -----
Total Developments Placed in Service 899,123 $152,954,060 $168,198,204 89%
======== ============ ============ =====
===================================================================================================================
(1) Represents 50% of the total anticipated project-level investment.
40
BOSTON PROPERTIES, INC.
THIRD QUARTER 2001
VALUE CREATION PIPELINE - OWNED LAND PARCELS
as of September 30, 2001
=============================================================================================================================
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
-------- ------- ------- -----------
>
Rockville, MD 4 92.3 986,000
Dulles, VA 2 76.6 937,000
Gaithersburg, MD 4 27.0 850,000
San Jose, CA 5 3.7 841,000
Reston, VA 2 4.7 480,716
Boston, MA 4 2.5 641,765
Washington, DC (1) 1 1.3 550,000
Marlborough, MA 1 50.0 400,000
Herndon, VA 2 25.2 383,000
Waltham, MA 1 4.3 202,000
S. San Francisco, CA 1 3.0 120,799
Andover, MA 1 10.0 110,000
----- ----- ---------
28 300.6 6,502,280
===== ===== =========
=============================================================================================================================
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
as of September 30, 2001
=====================================================================================
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
-------- ------- ------- -----------
Princeton, NJ (2) 14 149.9 1,900,000
Weston, MA (3) 1 74.0 350,000
Framingham, MA (4) 1 21.5 300,000
Cambridge, MA (5) 1 2.6 165,000
---- ----- ---------
17 248.0 2,715,000
==== ===== =========
=====================================================================================
(1) 25% interest in land through a joint venture.
(2) $20.00/FAR plus an earnout calculation.
(3) $18.2 million (of which $9.1 million has already been paid) subject to
receiving all necessary permits and approvals.
(4) Subject to ground lease.
(5) Prior to January 23, 2002 the cost will be $25.92/ SF of land area. Land
area is approximately 108,000 SF.
41