Exhibit 99.1
BOSTON PROPERTIES, INC.
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDED DECEMBER 31, 2001
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
INDEX
PAGE
----
COMPANY BACKGROUND 3
INVESTOR INFORMATION 4-5
FINANCIAL HIGHLIGHTS 6
CONSOLIDATED BALANCE SHEETS 7
CONSOLIDATED INCOME STATEMENTS 8
FUNDS FROM OPERATIONS 9
FINANCIAL RATIOS 10
CAPITAL STRUCTURE 11
DEBT ANALYSIS 12-14
JOINT VENTURES 15
PORTFOLIO OVERVIEW - SQUARE FOOTAGE 16
PROPERTY LISTING 17-20
TOP 20 TENANTS 21
PORTFOLIO OVERVIEW - FFO 22
OCCUPANCY ANALYSIS 23
OFFICE PROPERTIES - LEASE EXPIRATION ROLL OUT 24
OFFICE/TECHNICAL PROPERTIES - LEASE EXPIRATION ROLL OUT 25
INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 26
RETAIL PROPERTIES - LEASE EXPIRATION ROLL OUT 27
GRAND TOTAL - OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND RETAIL PROPERTIES 28
BOSTON AREA LEASE EXPIRATION ROLL OUT 29
WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 30
SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 31
NEW YORK AREA LEASE EXPIRATION ROLL OUT 32
PRINCETON AREA LEASE EXPIRATION ROLL OUT 33
OTHER AREA LEASE EXPIRATION ROLL OUT 34
HOTEL PERFORMANCE 35
SAME PROPERTY PERFORMANCE 36
IN-SERVICE PROPERTY PERFORMANCE 37
CAPITAL EXPENDITURES 38
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 39
VALUE CREATION PIPELINE - DEVELOPMENT 40
VALUE CREATION PIPELINE - LAND PARCELS 41
2
BOSTON PROPERTIES, INC.
FOURTH 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 29 development properties adding approximately 4.3 million square feet
to its portfolio, representing an investment of approximately $568.5 million. In
addition, the Company is constructing 12 office properties for a total
anticipated investment of approximately $1.8 billion. The Company owns or
controls land where it can develop an additional 9.7 million square feet.
3
BOSTON PROPERTIES, INC.
FOURTH 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 2002 WILL BE ANNOUNCED ACCORDING TO THE FOLLOWING
ANTICIPATED SCHEDULE:
FIRST QUARTER LATE APRIL
SECOND QUARTER LATE JULY
THIRD QUARTER LATE OCTOBER
FOURTH QUARTER LATE JANUARY
4
BOSTON PROPERTIES, INC.
FOURTH 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):
4TH QUARTER 2001 3RD QUARTER 2001 2ND QUARTER 2001 1ST QUARTER 2001
HIGH PRICE $ 38.4100 $ 41.2600 $ 41.0600 $ 43.3125
LOW PRICE $ 34.3300 $ 36.2000 $ 36.4700 $ 37.9200
CLOSING PRICE $ 38.0000 $ 38.1300 $ 40.9000 $ 38.4500
DIVIDENDS PER SHARE - ANNUALIZED $ 2.32 $ 2.32 $ 2.32 $ 2.12
CLOSING DIVIDEND YIELD - ANNUALIZED 6.11% 6.08% 5.67% 5.51%
CLOSING SHARES, COMMON UNITS AND PREFERRED UNITS
(IF CONVERTED) OUTSTANDING (THOUSANDS) 124,630 124,644 124,369 124,240
CLOSING MARKET VALUE OF SHARES AND UNITS
OUTSTANDING (THOUSANDS) $4,735,940 $4,752,676 $5,086,692 $4,777,028
5
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
FINANCIAL HIGHLIGHTS
(UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED
---------------------------------------------------------------------------
DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001
----------------- ------------------ ------------- --------------
INCOME ITEMS:
Revenue $ 266,094 $ 277,159 (1) $ 256,269 $ 233,456
Net straight line rent $ 9,215 $ 6,400 $ 6,487 $ 5,978
Lease termination fees $ 397 $ 4,857 $ 2,458 $ 1,163
Capitalized interest $ 12,739 $ 14,740 $ 15,800 $ 16,098
Net income available to common shareholders before
net derivative losses (SFAS No.133) $ 56,980 $ 65,083 $ 52,887 $ 48,058
Funds from operations (FFO) before net derivative losses
(SFAS No.133) and early surrender lease income - basic $ 110,942 $ 106,108 $ 100,124 $ 98,730
Company's share $ 90,704 $ 86,627 $ 81,410 $ 79,201
FFO before net derivative losses (SFAS 133) and after
early surrender lease income per share - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89
FFO before net derivative losses (SFAS 133) and after
early surrender lease income per share - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85
Dividends per share $ 0.58 $ 0.58 $ 0.58 $ 0.53
Funds available for distribution (FAD) (2) $ 93,123 $ 73,157 $ 80,335 $ 78,835
RATIOS:
Interest Coverage Ratio (excluding capitalized interest) 2.98 3.17 2.98 3.26
Interest Coverage Ratio (including capitalized interest) 2.45 2.53 2.32 2.43
FFO Payout Ratio 61.05% 63.74% 67.44% 62.35%
FAD Payout Ratio 69.13% 88.01% 79.95% 74.36%
DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001
----------------- ------------------ ------------- --------------
CAPITALIZATION:
Total Debt $4,314,942 $4,245,433 $4,177,670 $3,450,347
Total Common Shares Outstanding @ Quarter End 90,781 90,720 90,351 89,701
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 2,625 2,625 2,625
Total Common Units Outstanding @ Quarter End 20,213 20,288 20,382 20,903
Total Preferred Units Outstanding @ Quarter End
(if converted) 11,011 11,011 11,011 11,011
Price @ Quarter End $ 38.0000 $ 38.1300 $ 40.9000 $ 38.4500
Equity Value @ Quarter End $4,735,940 $4,752,676 $5,086,692 $4,777,028
Total Market Capitalization $9,050,882 $8,998,109 $9,264,362 $8,227,375
Debt/Total Market Capitalization 47.67% 47.18% 45.09% 41.94%
(1) Includes non-cash early surrender lease income of $12,445.
(2) FAD is defined as FFO after adjustments for second generation lease
commissions and tenant improvements, recurring capital expenditures,
straight line rents, preferred dividends and distributions and
nonrecurring charges.
6
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001
----------------- ------------------ ------------- --------------
(unaudited) (unaudited) (unaudited) (unaudited)
ASSETS
Real estate $6,165,932 $6,147,265 $6,090,113 $5,280,149
Development in progress 1,109,302 984,962 915,135 881,274
Land held for future development 182,672 165,753 160,729 123,232
Less accumulated depreciation (719,854) (683,029) (647,881) (616,620)
---------- ---------- ---------- ----------
Total real estate 6,738,052 6,614,951 6,518,096 5,668,035
Cash and cash equivalents 98,067 161,011 165,764 241,819
Escrows 23,000 20,901 31,577 29,861
Investments in securities 4,297 4,297 4,297 6,060
Tenant and other receivables, net 43,546 41,087 26,337 24,443
Accrued rental income, net 119,494 110,441 104,304 97,657
Deferred charges, net 107,573 104,370 100,804 76,209
Prepaid expenses and other assets 20,996 46,303 47,962 73,539
Investments in unconsolidated joint ventures 98,485 90,160 94,155 92,456
---------- ---------- ---------- ----------
Total assets $7,253,510 $7,193,521 $7,093,296 $6,310,079
========== ========== ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $4,314,942 $4,245,433 $4,177,670 $3,450,347
Unsecured Line of Credit - - - -
Accounts payable and accrued expenses 81,108 71,716 61,248 58,542
Dividends and distributions payable 79,561 79,005 78,241 71,917
Interest rate contracts 11,147 32,136 19,045 19,774
Accrued interest payable 9,080 15,679 12,067 8,127
Other liabilities 58,859 52,969 53,365 56,943
---------- ---------- ---------- ----------
Total liabilities 4,554,697 4,496,938 4,401,636 3,665,650
---------- ---------- ---------- ----------
Commitments and contingencies - - - -
---------- ---------- ---------- ----------
Minority interests 844,740 847,232 851,868 821,575
---------- ---------- ---------- ----------
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, 90,780,591,
90,720,477, 90,350,510, and 89,701,122
issued and outstanding, respectively 908 907 904 897
Additional paid-in capital 1,789,521 1,784,850 1,774,335 1,759,714
Dividends in excess of earnings (17,669) (20,296) (19,193) (15,829)
Treasury stock, at cost (2,722) - - -
Unearned compensation (2,097) (2,242) (2,386) (2,531)
Accumulated other comprehensive loss (13,868) (13,868) (13,868) (19,397)
---------- ---------- ---------- ----------
Total stockholders' equity 1,754,073 1,749,351 1,739,792 1,722,854
---------- ---------- ---------- ----------
Total liabilities and
stockholders' equity $7,253,510 $7,193,521 $7,093,296 $6,310,079
========== ========== ========== ==========
7
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
CONSOLIDATED INCOME STATEMENTS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
-------------------------------------------------------------
31-DEC-01 30-SEP-01 30-JUN-01 31-MAR-01
--------- --------- --------- ---------
Revenue:
Rental
Base Rent (1) $221,664 $232,300 $208,071 $185,691
Recoveries from tenants 26,966 27,473 27,266 26,178
Parking and other 11,757 12,965 13,533 13,746
-------- -------- -------- --------
Total rental revenue 260,387 272,738 248,870 225,615
Development and management services 3,878 2,805 3,110 3,397
Interest and other 1,829 1,616 4,289 4,444
-------- -------- -------- --------
Total revenue 266,094 277,159 256,269 233,456
-------- -------- -------- --------
Expenses:
Operating 83,611 81,475 76,865 70,343
General and administrative 8,663 9,819 9,880 9,950
Interest (2) 59,730 59,936 55,870 47,853
Depreciation and amortization 40,230 38,518 36,675 34,740
Loss on investments in other companies - - 6,500 -
-------- -------- -------- --------
Total expenses 192,234 189,748 185,790 162,886
-------- -------- -------- --------
Income before net derivative losses (SFAS No.133),
minority interests and income from unconsolidated
joint ventures 73,860 87,411 70,479 70,570
Net derivative losses (SFAS No.133) (2,080) (16,620) (4,733) (3,055)
Minority interest in property partnerships 456 374 510 (255)
Income from unconsolidated joint ventures 1,345 997 717 1,127
-------- -------- -------- --------
Income before minority interest in Operating Partnership 73,581 72,162 66,973 68,387
Minority interest in Operating Partnership (3) (19,237) (18,994) (18,138) (19,024)
-------- -------- -------- --------
Income before gain on sale of real estate 54,344 53,168 48,835 49,363
Gain on sale of real estate, net of minority interest 2,584 - 1,851 4,654
-------- -------- -------- --------
Income before cumulative effect of a change in accounting
principle 56,928 53,168 50,686 54,017
Cumulative effect of a change in accounting principle,
net of minority interest - - - (6,767)
-------- -------- -------- --------
Income before preferred dividend 56,928 53,168 50,686 47,250
Preferred dividend (1,648) (1,653) (1,648) (1,643)
-------- -------- -------- --------
Net income available to common shareholders $ 55,280 $ 51,515 $ 49,038 $ 45,607
======== ======== ======== ========
INCOME PER SHARE OF COMMON STOCK
Net income available to common shareholders per share - basic $ 0.61 $ 0.57 $ 0.54 $ 0.51
======== ======== ======== ========
Net income available to common shareholders per share - diluted $ 0.60 $ 0.56 $ 0.53 $ 0.50
======== ======== ======== ========
(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 $9,215, $6,400, $6,487 and $5,978 for the three
months ended December 31, 2001, September 30, 2001, June 30, 2001 and
March 31, 2001, respectively.
(2) Excludes capitalized interest of $12,739, $14,740, $15,800 and $16,098
for the three months ended December 31, 2001, September 30, 2001, June
30, 2001 and March 31, 2001, respectively.
(3) Equals minority interest percent of 18.24%, 18.36%, 18.69% and 19.78%,
respectively of income before minority interest in Operating
Partnership after deduction for preferred dividends and distributions
for the three months ended December 31, 2001, September 30, 2001, June
30, 2001 and March 31, 2001, respectively.
8
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
FUNDS FROM OPERATIONS
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
THREE MONTHS ENDED
---------------------------------------------------------------------
31-DEC-01 30-SEP-01 30-JUN-01 31-MAR-01
--------- --------- --------- ---------
Income from operations before net derivative
losses (SFAS No.133), minority interests
and income from unconsolidated joint ventures $ 73,860 $ 87,411 $ 70,479 $70,570
Add:
Real estate depreciation and amortization (1) 41,034 39,360 37,599 35,557
Income from unconsolidated joint ventures 1,345 997 717 1,127
Less:
Net derivative losses (SFAS No.133) 2,080 16,620 4,733 3,055
Minority property partnership's share of funds
from operations 776 832 411 303
Preferred dividends and distributions 8,448 8,383 8,260 8,221
-------- -------- -------- -------
Funds from operations (FFO) 104,935 101,933 95,391 95,675
Add (subtract):
Net derivative losses (SFAS No.133) 2,080 16,620 4,733 3,055
Early surrender lease payments received -
contractual basis 3,927 (12,445) - -
-------- -------- -------- -------
FFO before net derivative losses (SFAS No.133) and
after early surrender lease payments received $110,942 $106,108 $100,124 $98,730
======== ======== ======== =======
FFO available to common shareholders before net
derivative losses (SFAS No. 133) and after early
surrender lease payments received (3) $ 90,704 $ 86,627 $ 81,410 $79,201
======== ======== ======== =======
FFO per share before net derivative losses (SFAS No.133)
and after cash basis early surrender lease
income - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89
======== ======== ======== =======
Weighted average shares outstanding - basic 90,737 90,519 89,990 88,688
======== ======== ======== =======
FFO per share before net derivative losses (SFAS No.133)
and after early surrender lease payments
received - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85
======== ======== ======== =======
FFO per share after net derivative losses (SFAS No.133)
and before early surrender lease payments
received - diluted $ 0.90 $ 0.87 $ 0.82 $ 0.83
======== ======== ======== =======
Weighted average shares outstanding - diluted 105,577 105,812 105,259 104,160
======== ======== ======== =======
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
DECEMBER 31, 2001 SEPTEMBER 30, 2001 JUNE 30, 2001 MARCH 31, 2001
----------------- ------------------ ------------- --------------
INCOME SHARES INCOME SHARES INCOME SHARES INCOME SHARES
(NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR)(NUMERATOR)(DENOMINATOR)(NUMERATOR)(DENOMINATOR)
----------- ------------- ----------- ------------ ----------- ------------ ---------- -----------
Basic FFO before net derivative
losses (SFAS No.133) and after
early surrender lease income $110,942 110,982 $106,108 110,876 $100,124 110,676 $98,730 110,556
Effect of Dilutive Securities
Convertible Preferred Units 6,800 11,011 6,730 11,011 6,612 11,011 6,578 11,011
Convertible Preferred Stock 1,648 2,625 1,653 2,625 1,648 2,625 1,643 2,625
Stock Options and other - 1,205 - 1,657 - 1,633 - 1,837
-------- ------- -------- ------- -------- ------- -------- -------
Diluted FFO before net derivative
losses (SFAS No.133) and after
early surrender lease payments
received $119,390 125,823 $114,491 126,169 $108,384 125,945 $106,951 126,029
======== ======= ======== ======= ======== ======= ======== =======
Company's share of diluted FFO
before net derivative losses
(SFAS 133) and after early
surrender lease payments
received (2) $100,179 105,577 $96,017 105,812 $90,581 105,259 $88,379 104,160
======== ======= ======== ======= ======== ======= ======== =======
FFO per share before net
derivative losses
(SFAS No.133) and after early
surrender lease payments
received - basic $ 1.00 $ 0.96 $ 0.90 $ 0.89
======== ======== ======== ========
FFO per share before net derivative
losses (SFAS No.133) and after
early surrender lease payments
received - diluted $ 0.95 $ 0.91 $ 0.86 $ 0.85
======== ======== ======== ========
(1) Real estate depreciation includes the Company's share of joint venture
real estate depreciation of $1,380, $1,394, $1,376 and $1,260, less
corporate related depreciation of $576, $552, $452 and $443 , for the
three months ended December 31, 2001, September 30, 2001, June 30, 2001
and March 31, 2001,respectively.
(2) Based on weighted average shares for the quarter. Company's share for
the quarter ended December 31, 2001, September 30, 2001, June 30,
2001and March 31, 2001 was 81.79%, 81.64%, 81.31%and 80.22%,
respectively.
(3) Based on weighted average diluted shares for the quarter. Company's
share for the quarter ended December 31, 2001, September 30, 2001, June
30, 2001and March 31, 2001 was 83.91%, 83.87%, 83.58% and 82.65%,
respectively.
9
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
FINANCIAL RATIOS
THREE MONTHS ENDED
------------------------------------------------------------------
12/31/2001 9/30/2001 6/30/2001 3/31/2001
---------- --------- --------- ---------
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1)
Debt Service Coverage Ratio 2.51 2.72 (2) 2.54 2.74
(EBITDA + Income from Unconsolidated Joint Ventures)/
(Interest+Principal)
Interest Coverage Ratio (excluding capitalized int 2.98 3.17 (2) 2.98 3.26
(EBITDA + Income from Unconsolidated Joint Venture)/
Interest
Interest Coverage Ratio (including capitalized interest) 2.45 2.53 (2) 2.32 2.43
(EBITDA + Income from Unconsolidated Joint Venture)/
Interest
Return on Shareholder's Equity 16.92% 18.74% (2) 16.06% 15.99%
(EBITDA/Average Equity (book value)) (%)
Return on Real Estate Investments 10.41% 11.32% (2) 10.70% 10.95%
(EBITDA/Average Real Estate Investments
(book value)) (%)
Dividend Payout Ratio 61.05% 63.74% 67.44% 62.35%
(Dividends Declared/FFO) (%)
(1) EBITDA is equal to earnings before interest, taxes, depreciation and
amortization.
(2) Includes non-cash early surrender lease income of $12,445.
10
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
CAPITAL STRUCTURE
DEBT
(IN THOUSANDS)
AGGREGATE PRINCIPAL
DECEMBER 31, 2001
-------------------
Mortgage Loans $4,314,942
Unsecured Line of Credit -
----------
Total Debt $4,314,942
==========
EQUITY
(IN THOUSANDS)
COMMON
SHARES & UNITS STOCK
OUTSTANDING EQUIVALENTS EQUIVALENT (1)
-------------- ----------- -------------
Common Stock 90,781 90,781 $3,449,678
Preferred Stock 2,000 2,625 99,750
Operating Partnership Units 20,213 20,213 768,094
Preferred Operating Partnership Units 9,346 11,011 418,418
-------- ----------
Total Equity 124,630 $4,735,940
======== ==========
Total Market Capitalization $9,050,882
==========
(1) Value based on December 31, 2001 closing price of $38.00.
11
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
YEAR 2002 2003 2004 2005 2006 THEREAFTER TOTAL
- ------ ----- ---- ---- ----- ------ ---------- -----
Amount $282,139 $809,695 $306,567 $277,880 $284,516 $2,354,145 $4,314,942
UNSECURED LINE OF CREDIT - DUE MARCH 31, 2003
(IN THOUSANDS)
OUTSTANDING LETTERS OF REMAINING
FACILITY @12/31/01 CREDIT CAPACITY
-------- ----------- ---------- ----------
$605,000 $- $3,470 $601,530
UNSECURED AND SECURED DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Unsecured Debt 0.00% 0.00% 1.2 years
Secured Debt 100.00% 6.57% 5.7 years
------ ---- ---
Total Debt 100.00% 6.57% 5.7 years
====== ==== ===
FLOATING AND FIXED RATE DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Floating Rate Debt 20.07% 3.77% 1.4 years
Fixed Rate Debt 79.93% 7.27% 6.7 years
------ ---- ---
Total Debt 100.00% 6.57% 5.7 years
====== ==== ===
12
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS
(IN THOUSANDS)
PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL
-------- ---- ---- ---- ---- ---- ---------- -----
Citigroup Center $ 5,366 $ 5,763 $ 6,191 $ 6,651 $ 7,145 $490,928 $522,044
Embarcadero Center One, Two
and Federal Reserve 4,207 4,498 4,809 5,141 5,496 284,789 308,940
5 Times Square - 289,179 - - - - 289,179
Prudential Center 3,726 4,299 4,591 4,919 5,256 265,325 288,116
280 Park Avenue 2,595 2,800 3,022 3,261 3,519 252,592 267,789
599 Lexington Avenue - - - 225,000 - - 225,000
111 Huntington Avenue 184,307 - - - - - 184,307
Embarcadero Center Four 2,863 3,315 3,544 3,797 4,061 134,058 151,638
875 Third Avenue 2,030 146,766 - - - - 148,796
Times Square Tower - - 145,472 - - - 145,472
Embarcadero Center Three 1,900 2,206 2,351 2,506 2,671 132,726 144,360
Two Independence Square 1,285 113,808 - - - - 115,093
Riverfront Plaza 2,340 2,720 2,905 3,104 3,314 98,867 113,250
Democracy Center 1,703 1,828 1,961 2,103 2,257 96,150 106,002
Embarcadero Center West Tower 1,247 1,449 1,546 1,649 90,416 - 96,307
100 East Pratt Street 1,718 1,836 1,964 2,100 2,246 80,511 90,375
601 and 651 Gateway Boulevard 699 826 899 977 1,062 84,721 89,184
One Independence Square - 75,000 - - - - 75,000
Reservoir Place 2,669 2,859 3,061 3,279 60,067 - 71,935
One & Two Reston Overlook 759 818 65,908 - - - 67,485
2300 N Street - 66,000 - - - - 66,000
202, 206 & 214 Carnegie Center 564 610 663 719 780 59,061 62,397
New Dominion Technology Park,
Building One 61 102 91 654 1,282 55,420 57,610
Capital Gallery 1,192 1,293 1,404 1,524 50,651 - 56,064
504,506 & 508 Carnegie Center 842 979 1,052 1,136 1,221 42,229 47,459
13
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
DEBT ANALYSIS
DEBT MATURITIES AND PRINCIPAL PAYMENTS (CONTINUED)
(IN THOUSANDS)
PROPERTY 2002 2003 2004 2005 2006 THEREAFTER TOTAL
-------- ---- ---- ---- ---- ---- ---------- -----
Waltham Weston Corporate
Center - - 46,446 - - - 46,446
10 & 20 Burlington Mall Road 548 641 688 741 795 36,444 39,857
10 Cambridge Center 473 559 607 659 715 32,213 35,226
1301 New York Avenue 1,128 1,217 1,315 1,417 1,531 25,061 31,669
Sumner Square 447 481 518 557 599 27,581 30,183
Eight Cambridge Center 477 516 557 601 649 25,188 27,988
2600 Tower Oaks Boulevard 27,318 - - - - - 27,318
Quorum Office Park - 27,295 - - - - 27,295
510 Carnegie Center 470 547 588 635 683 24,255 27,178
Lockheed Martin Building 519 601 641 685 732 22,581 25,759
Orbital Sciences - Phase I 25,644 - - - - - 25,644
University Place 561 655 702 752 806 21,203 24,679
Reston Corporate Center 497 574 612 654 698 21,268 24,303
Orbital Sciences - Phase II - 23,587 - - - - 23,587
191 Spring Street 375 407 443 482 20,773 - 22,480
Bedford Business Park 536 634 690 751 818 17,749 21,178
NIMA Building 429 497 530 566 604 18,430 21,056
40 Shattuck Road - 14,822 - - - - 14,822
101 Carnegie Center 296 348 375 406 6,622 - 8,047
Montvale Center 134 160 173 189 6,762 - 7,418
302 Carnegie Center - 6,969 - - - - 6,969
Hilltop Business Center 176 187 200 214 230 4,581 5,588
201 Carnegie Center 38 44 48 51 55 214 450
-------- -------- -------- -------- -------- ---------- ----------
$282,139 $809,695 $306,567 $277,880 $284,516 $2,354,145 $4,314,942
======== ======== ======== ======== ======== ========== ==========
14
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
JOINT VENTURES
(UNAUDITED AND IN THOUSANDS)
AS OF DECEMBER 31, 2001
ONE MARKET 140 265 901 TWO
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY NEW YORK FREEDOM
SQUARE NORTH SQUARE STREET STREET SQUARE AVENUE (2) SQUARE (2) COMBINED
-------- ------- ------------- --------- -------- --------- ---------- ---------- --------
Total Equity (1) $ 1,253 $14,774 $32,379 $ 5,377 $18,911 $ 6,660 $12,321 $ 6,810 $ 98,485
======= ======= ======= ======= ======= ======= ======= ======= ========
Mortgage/Construction
loans payable (1) $19,130 $49,373 $70,476 $14,197 $18,900 $23,048 $ - $21,058 $216,182
======= ======= ======= ======= ======= ======= ======= ======= ========
BXP's ownership
percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 25.00% 50.00%
======= ======= ======= ======= ======= ======= ======= ======= ========
RESULTS OF OPERATIONS FOR THE UNCONSOLIDATED JOINT VENTURES
FOR THE THREE MONTHS ENDED DECEMBER 31, 2001
ONE MARKET 140 265 901 TWO
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY NEW YORK FREEDOM
SQUARE NORTH SQUARE STREET STREET (4) SQUARE (5) AVENUE (2) SQUARE (2) COMBINED
-------- ------- ------------ -------- ---------- ---------- ---------- ---------- --------
REVENUE
Total revenue $3,727 $4,905 $6,271 $3,091 $2,465 $566 $ - $ - $21,025(3)
------- ------ ------ ------- ------- ------ ------- ------- -------
EXPENSES
Operating 1,029 1,491 1,939 478 963 40 - - 5,940
Interest 1,489 1,903 2,870 1,063 513 79 - - 7,917
Depreciation and
amortization 799 630 1,182 281 506 102 - - 3,500
------- ------ ------ ------- ------- ------ ------- ------- -------
Total expenses 3,317 4,024 5,991 1,822 1,982 221 - - 17,357
------- ------ ------ ------- ------- ------ ------- ------- -------
Net income $ 410 $ 881 $ 280 $1,269 $ 483 $345 $ - $ - $ 3,668
======= ====== ====== ====== ====== ==== ======= ======= =======
BXP's ownership
percentage 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 25.00% 50.00%
======= ====== ====== ====== ====== ==== ======= =======
BXP's share of net
income $ 102 $ 441 $ 143 $ 317 $ 169 $173 $ - $ - $ 1,345
======= ====== ====== ====== ====== ==== ======= ======= =======
BXP's share of Funds from
Operations $ 300 $ 756 $ 733 $ 389 $ 323 $224 $ - $ - $ 2,725
======= ====== ====== ====== ====== ==== ======= ======= =======
(1) Represents the Company's share.
(2) Property is currently under development.
(3) The impact of the straight-line rent adjustment increased revenue by
$1,875 for the three months ended December 31, 2001.
(4) The Company is currently repositioning this property.
(5) This property had an initial occupancy in December 2001.
15
BOSTON PROPERTIES, INC.
FOURTH 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 6,523,103 (2) 545,206 169,273 7,237,582 25.03%
Greater Washington 6,657,222 (3) 1,143,148 - 7,800,370 26.98%
Greater San Francisco 4,451,797 144,366 280,213 4,876,376 16.87%
Midtown Manhattan 4,454,264 - - 4,454,264 15.41%
Princeton/
East Brunswick, NJ 2,308,822 - - 2,308,822 7.99%
Baltimore, MD 1,174,629 - - 1,174,629 4.06%
Richmond, VA 899,604 - - 899,604 3.11%
Bucks County, PA - - 161,000 161,000 0.56%
---------- --------- -------- ----------- -------
26,469,441 1,832,720 610,486 28,912,647 100.00%
========== ========= ======== =========== =======
% of Total 91.55% 6.34% 2.11% 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 344,119 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.
FOURTH QUARTER 2001
PROPERTY LISTING
AS OF DECEMBER 31, 2001
ANNUALIZED
REVENUE
NUMBER OF PER
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF
---------- ---------- ----------- ---------- -----------
GREATER BOSTON
Office
The Prudential Center CBD Boston MA 3 2,152,059 94.5% $37.60
265 Franklin Street
(35% ownership) CBD Boston MA 1 344,119 46.5% 56.82
One Cambridge Center East Cambridge MA 1 215,385 96.5% 42.05
Three Cambridge Center East Cambridge MA 1 107,484 100.0% 25.65
Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 29.77
Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 33.87
Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 40.71
University Place Mid-Cambridge MA 1 195,282 100.0% 32.78
Reservoir Place Route 128 Mass Turnpike MA 1 522,450 85.0% 34.19
204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 100.0% 28.13
140 Kendrick Street
(25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 27.20
170 Tracer Lane Route 128 Mass Turnpike MA 1 73,203 55.1% 34.60
Waltham Office Center Route 128 Mass Turnpike MA 3 131,479 90.4% 29.92
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 46.01
200 West Street Route 128 Mass Turnpike MA 1 248,048 92.5% 31.97
10 & 20 Burlington Mall
Road Route 128 Northwest MA 2 156,416 81.9% 32.02
Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 21.39
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 28.94
91 Hartwell Avenue Route 128 Northwest MA 1 122,135 76.2% 33.86
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0% 21.74
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 32.20
33 Hayden Avenue Route 128 Northwest MA 1 79,564 100.0% 24.89
Lexington Office Park Route 128 Northwest MA 2 167,293 93.5% 30.97
191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 32.32
181 Spring Street Route 128 Northwest MA 1 53,595 100.0% 35.47
201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 32.10
40 Shattuck Road Route 128 Northwest MA 1 119,499 83.3% 25.23
Quorum Office Park Route 128 Northwest MA 2 259,918 100.0% 16.98
Newport Office Park Route 128 South MA 1 168,829 100.0% 23.87
---------------------------------------------------------------
38 6,523,103 91.7% $33.59
---------------------------------------------------------------
Office/Technical
Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0% 19.32
Bedford Business Park Route 128 Northwest MA 2 383,704 100.0% 13.18
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 10.25
164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 9.31
---------------------------------------------------------------
5 545,206 100.0% $13.32
---------------------------------------------------------------
Industrial
40-46 Harvard Street Route 128 Southwest MA 1 169,273 89.8% $7.49
---------------------------------------------------------------
Total Greater Boston: 44 7,237,582 92.3%
============================================
17
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
PROPERTY LISTING
AS OF DECEMBER 31, 2001
ANNUALIZED
REVENUE
NUMBER OF PER
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF
---------- ---------- ----------- ---------- -----------
GREATER WASHINGTON, DC
Office
2300 N Street West End Washington DC 1 276,930 98.7% $52.45
One Independence Square Southwest Washington DC 1 337,794 100.0% 40.51
Two Independence Square Southwest Washington DC 1 579,665 100.0% 37.96
Capital Gallery Southwest Washington DC 1 396,894 100.0% 35.28
500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 32.10
Metropolitan Square
(51% ownership) East End Washington DC 1 587,217 96.9% 35.34
1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.30
Market Square North
(50% ownership) East End Washington DC 1 401,279 100.0% 42.23
Sumner Square CBD Washington DC 1 207,620 99.8% 32.69
Decoverly Two Montgomery County MD 1 77,747 100.0% 23.15
Decoverly Three Montgomery County MD 1 77,040 100.0% 24.53
Democracy Center Montgomery County MD 3 681,427 88.8% 27.53
Montvale Center Montgomery County MD 1 120,823 100.0% 22.21
2600 Tower Oaks Boulevard Montgomery County MD 1 178,899 70.3% 30.82
Orbital Sciences Campus Loudoun County 3 337,228 100.0% 22.71
The Arboretum Fairfax County VA 1 95,584 100.0% 25.95
One Freedom Square
(25% ownership) Fairfax County VA 1 410,308 100.0% 33.05
One Reston Overlook Fairfax County VA 1 312,685 100.0% 21.44
Two Reston Overlook Fairfax County VA 1 131,594 100.0% 32.31
New Dominion Technology
Park Fairfax County VA 1 235,201 100.0% 27.12
Reston Corporate Center Fairfax County VA 2 261,046 100.0% 31.09
Lockheed Martin Building Fairfax County VA 1 255,244 100.0% 41.67
NIMA Building Fairfax County VA 1 263,870 100.0% 45.57
-----------------------------------------------------------------
28 6,657,222 97.7% $33.83
---------------------------------------------------------------
Office/Technical
Fullerton Square Fairfax County VA 2 179,453 95.5% $13.41
Sugarland Business Park,
Building One Fairfax County VA 1 52,797 100.0% 22.53
Sugarland Business Park,
Building Two Fairfax County VA 1 59,215 100.0% 21.87
7435 Boston Boulevard Fairfax County VA 1 103,557 100.0% 14.99
7451 Boston Boulevard Fairfax County VA 1 47,001 76.7% 12.67
7450 Boston Boulevard Fairfax County VA 1 62,402 100.0% 16.77
7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.90
8000 Grainger Court Fairfax County VA 1 90,465 100.0% 13.67
7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.21
7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 23.49
7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 14.28
7600 Boston Boulevard Fairfax County VA 1 69,832 100.0% 15.53
7375 Boston Boulevard Fairfax County VA 1 26,865 87.1% 15.73
8000 Corporate Court Fairfax County VA 1 52,539 100.0% 9.49
7700 Boston Boulevard Fairfax County VA 1 82,224 100.0% 19.98
-----------------------------------------------------------------
16 1,143,148 98.0% $16.06
-----------------------------------------------------------------
----------------------------------------------
Total Greater Washington: 44 7,800,370 97.8%
==============================================
18
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
PROPERTY LISTING
AS OF DECEMBER 31, 2001
ANNUALIZED
REVENUE
NUMBER OF PER
SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF
---------- ---------- ----------- ---------- -----------
MIDTOWN MANHATTAN
Office
599 Lexington Avenue Park Avenue NY 1 1,000,995 100.0% $56.18
280 Park Avenue Park Avenue NY 1 1,166,777 100.0% 49.82
Citigroup Center Park Avenue NY 1 1,577,564 99.5% 53.73
875 Third Avenue East Side NY 1 708,928 99.7% 50.19
-----------------------------------------------------------------
Total Midtown Manhattan: 4 4,454,264 99.8% $52.69
=================================================================
PRINCETON/EAST BRUNSWICK, NJ
Office
101 Carnegie Center Princeton NJ 1 123,659 100.0% $26.76
104 Carnegie Center Princeton NJ 1 102,830 100.0% 30.35
105 Carnegie Center Princeton NJ 1 69,648 100.0% 28.19
201 Carnegie Center Princeton NJ - 6,500 100.0% 23.79
202 Carnegie Center Princeton NJ 1 128,705 100.0% 29.03
210 Carnegie Center Princeton NJ 1 161,112 100.0% 29.24
211 Carnegie Center Princeton NJ 1 47,025 100.0% 24.09
212 Carnegie Center Princeton NJ 1 144,105 84.5% 30.86
214 Carnegie Center Princeton NJ 1 152,214 93.4% 28.56
206 Carnegie Center Princeton NJ 1 161,763 100.0% 27.51
302 Carnegie Center Princeton NJ 1 64,677 76.8% 32.88
502 Carnegie Center Princeton NJ 1 116,374 95.3% 28.04
510 Carnegie Center Princeton NJ 1 234,160 100.0% 24.81
504 Carnegie Center Princeton NJ 1 121,990 100.0% 28.28
506 Carnegie Center Princeton NJ 1 133,160 30.1% 29.08
508 Carnegie Center Princeton NJ 1 131,085 100.0% 24.78
One Tower Center East Brunswick NJ 1 409,815 71.6% 30.88
-----------------------------------------------------------------
Total Princeton/East Brunswick, NJ: 16 2,308,822 88.6% $28.28
=================================================================
GREATER SAN FRANCISCO
Office
Embarcadero Center One CBD San Francisco CA 1 833,721 95.4% $41.14
Embarcadero Center Two CBD San Francisco CA 1 779,281 89.4% 45.18
Embarcadero Center Three CBD San Francisco CA 1 773,516 97.3% 41.18
Embarcadero Center Four CBD San Francisco CA 1 935,745 94.9% 60.50
Federal Reserve CBD San Francisco CA 1 149,592 100.0% 47.14
West Tower CBD San Francisco CA 1 473,738 98.9% 49.22
The Gateway South San Francisco CA 2 506,204 91.3% 36.67
-----------------------------------------------------------------
8 4,451,797 94.6% $46.51
-----------------------------------------------------------------
Office/Technical
-----------------------------------------------------------------
Hilltop Office Center South San Francisco CA 9 144,366 89.0% $15.14
-----------------------------------------------------------------
Industrial
560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 10.19
430 Rozzi Place South San Francisco CA 1 20,000 100.0% 11.38
2391 West Winton Hayward CA 1 220,213 72.8% 4.72
-----------------------------------------------------------------
3 280,213 78.6% $6.32
-----------------------------------------------------------------
Total Greater San Francisco: 20 4,876,376 93.5%
==============================================
19
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
PROPERTY LISTING
AS OF DECEMBER 31, 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% $18.40
100 East Pratt Street Baltimore MD 1 635,323 98.9% 31.39
-----------------------------------------------------------------
Total Baltimore, MD: 2 1,174,629 99.2% $25.41
=================================================================
RICHMOND, VA
Office
Riverfront Plaza Richmond VA 1 899,604 98.4% $23.32
=================================================================
BUCKS COUNTY, PA
Industrial
38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $4.32
=================================================================
Total In-Service Properties: 132 28,912,647 95.3%
================================================
20
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
TOP 20 TENANTS BY SQUARE FEET LEASED
TENANT SQ. FT. % OF PORTFOLIO
- ------------------------------------ ---------- ------------------
1 U.S. Government 2,294,441 7.94%
2 Lockheed Martin Corporation 716,653 2.48%
3 Citigroup 639,971 2.21%
4 Gillette Company 488,177 1.69%
5 Shearman & Sterling 436,358 1.51%
6 Parametric Technology Corp. (1) 380,987 1.32%
7 Washington Group International 365,245 1.26%
8 Deutsche Bank 346,617 1.20%
9 Orbital Sciences Corporation 337,228 1.17%
10 First Union 325,396 1.13%
11 Hunton & Williams 322,829 1.12%
12 TRW, Inc. 317,921 1.10%
13 T. Rowe Price Associates, Inc. 304,129 1.05%
14 Marsh USA Inc. 299,236 1.03%
15 Digitas 279,182 0.97%
16 Accenture (1) 265,622 0.92%
17 Tellabs Operations, Inc. 259,918 0.90%
18 Covance, Inc. 258,831 0.90%
19 John Hancock Advisors 233,516 0.81%
20 Kirkland & Ellis (2) 229,832 0.79%
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
TENANT SQ. FT.
- ------------------------------------ ----------
Ernst & Young 1,062,203
Andersen 620,947
(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.
FOURTH 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 DECEMBER 31, 2001
Office/
Geographic Area Office (2) Technical Industrial Hotel Total
- --------------- ---------- --------- ---------- ----- -----
Greater Boston 20.5% 0.9% 0.1% 3.2% 24.7%
Greater Washington 20.9% 1.9% - - 22.8%
Greater San Francisco 18.9% 0.2% 0.2% - 19.3%
Midtown Manhattan 22.6% - - - 22.6%
Princeton/East Brunswick, NJ 5.3% - - - 5.3%
Baltimore, MD 3.1% - - - 3.1%
Richmond, VA 2.2% - - - 2.2%
Bucks County, PA - - 0.1% - 0.1%
---- --- --- --- -----
Total 93.5% 3.0% 0.4% 3.2% 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
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
OCCUPANCY ANALYSIS
SAME PROPERTY OCCUPANCY - BY LOCATION
Location 31-Dec-01 31-Dec-00
- -------- --------- ---------
Greater Boston 94.2% 99.2%
Greater Washington 98.2% 98.6%
Midtown Manhattan 99.9% 99.9%
Baltimore, MD 99.2% 99.8%
Princeton/East Brunswick, NJ 89.0% 98.7%
Richmond, VA 98.4% 100.0%
Greater San Francisco 93.5% 97.9%
Bucks County, PA 100.0% 100.0%
--------- ---------
Total Portfolio 95.8% 98.9%
========= =========
SAME PROPERTY - BY TYPE OF PROPERTY
31-Dec-01 31-Dec-00
--------- ---------
Total Office Portfolio 95.8% 99.0%
Total Office/Technical Portfolio 97.9% 98.0%
Total Industrial Portfolio 87.3% 96.9%
--------- ---------
Total Portfolio 95.8% 98.9%
========= =========
23
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE OFFICE PROPERTIES
LEASE EXPIRATIONS
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet
- ------------- ------------------ ------------------ -------------------- --------------------
2002 1,036,565 $38,537,952 $38,537,952 4.09%
2003 1,706,651 57,997,025 59,350,625 6.74%
2004 2,617,925 97,079,137 98,858,839 10.34%
2005 2,410,523 84,992,402 88,940,211 9.52%
2006 3,542,412 139,495,488 146,830,082 13.99%
2007 1,950,711 72,358,386 73,762,026 7.70%
2008 1,273,596 51,013,523 51,681,142 5.03%
2009 2,117,841 76,219,088 85,690,403 8.36%
2010 1,090,480 48,309,101 55,249,102 4.31%
2011 2,154,657 79,478,468 93,243,476 8.51%
Thereafter 4,180,317 171,383,106 203,747,454 16.51%
OCCUPANCY BY LOCATION
31-Dec-01 31-Dec-00
--------- ---------
Greater Boston 91.7% 99.2%
Greater Washington 97.7% 99.0%
Midtown Manhattan 99.8% 99.9%
Baltimore, MD 99.2% 99.6%
Richmond, VA 98.4% 100.0%
Princeton/East Brunswick, NJ 88.6% 98.5%
Greater San Francisco 94.6% 98.4%
Bucks County, PA n/a n/a
--------- ---------
Total Office Portfolio 95.4%* 99.1%*
========= =========
* Includes approximately 1,000,000 of retail square footage.
24
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE OFFICE/TECHNICAL PROPERTIES
LEASE EXPIRATIONS
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet
- ------------- ------------------ ------------------ -------------------- --------------------
2002 351,980 $5,229,210 $5,229,210 19.21%
2003 89,758 1,435,957 1,473,948 4.90%
2004 84,867 1,330,398 1,432,369 4.63%
2005 162,809 2,115,905 2,281,671 8.88%
2006 324,598 4,141,635 4,550,620 17.71%
2007 224,182 3,820,980 4,111,036 12.23%
2008 - - - -
2009 - - - -
2010 79,971 1,136,750 1,136,750 4.36%
2011 137,321 2,366,101 2,566,101 7.49%
Thereafter 320,058 5,560,725 6,465,790 17.46%
OCCUPANCY BY LOCATION
31-Dec-01 31-Dec-00
--------- ---------
Greater Boston 100.0% 100.0%
Greater Washington 98.0% 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 89.0% 99.2%
Bucks County, PA n/a n/a
--------- ---------
Total Office/Technical Portfolio 97.9% 98.0%
========= =========
25
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE INDUSTRIAL PROPERTIES
LEASE EXPIRATIONS
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet
- ------------- ------------------ ------------------ -------------------- --------------------
2002 184,904 $ 904,066 $ 904,066 30.29%
2003 128,105 930,042 930,042 20.98%
2004 200,213 1,163,249 1,220,900 32.80%
2005 - - - -
2006 - - - -
2007 20,000 227,568 258,279 3.28%
2008 - - - -
2009 - - - -
2010 - - - -
2011 - - - -
Thereafter - - - -
OCCUPANCY BY LOCATION
31-Dec-01 31-Dec-00
--------- ---------
Greater Boston 89.8% 93.0%
Greater Washington n/a 90.1%
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% 95.9%
========= =========
26
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE RETAIL PROPERTIES
LEASE EXPIRATIONS
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet
- ------------- ------------------ ------------------ -------------------- --------------------
2002 89,363 $6,630,724 $6,671,265 7.78%
2003 204,733 6,012,458 6,110,981 17.83%
2004 109,693 6,321,854 6,470,830 9.55%
2005 93,042 3,707,638 3,879,005 8.10%
2006 76,708 3,486,109 3,586,972 6.68%
2007 47,118 2,464,627 2,670,199 4.10%
2008 44,581 2,138,967 2,286,522 3.88%
2009 37,312 1,428,832 1,550,484 3.25%
2010 94,932 2,807,570 3,940,051 8.27%
2011 41,124 2,519,991 2,850,451 3.58%
Thereafter 309,786 10,875,748 12,468,678 26.98%
27
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
LEASE EXPIRATION
Annualized
Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Percentage of Total
Expiration Expiring Leases Expiring Leases with future step-ups Square Feet
- ------------- ------------------ ------------------ -------------------- --------------------
2002 1,662,812 $ 51,301,952 $ 51,342,493 5.75%
2003 2,129,247 66,375,482 67,865,596 7.36%
2004 3,012,698 105,894,638 107,982,938 10.42%
2005 2,666,374 90,815,945 95,100,887 9.22%
2006 3,943,718 147,123,232 154,967,674 13.64%
2007 2,242,011 78,871,561 80,801,540 7.75%
2008 1,318,177 53,152,490 53,967,664 4.56%
2009 2,155,153 77,647,920 87,240,887 7.45%
2010 1,265,383 52,253,421 60,325,903 4.38%
2011 2,333,102 84,364,560 98,660,028 8.07%
Thereafter 4,810,161 187,819,579 222,681,922 16.64%
OCCUPANCY BY LOCATION
31-Dec-01 31-Dec-00
--------- ---------
Greater Boston 92.3% 99.0%
Greater Washington 97.8% 98.4%
Midtown Manhattan 99.8% 99.9%
Baltimore, MD 99.2% 99.6%
Richmond, VA 98.4% 100.0%
Princeton/East Brunswick, NJ 88.6% 98.5%
Greater San Francisco 93.5% 98.5%
Bucks County, PA 100.0% 100.0%
--------- ---------
Total Portfolio 95.3% 98.9%
========= =========
28
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE GREATER BOSTON PROPERTIES
LEASE EXPIRATIONS
GREATER BOSTON
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 283,499 $ 9,296,254 $ 9,296,254 64,140 $ 596,944 $ 596,944
2003 506,250 15,349,375 16,479,593 - - -
2004 697,561 25,498,035 26,492,281 - - -
2005 945,631 35,462,680 36,558,473 - - -
2006 589,681 20,533,244 21,926,302 253,704 3,064,298 3,344,121
2007 254,834 9,371,707 10,218,368 80,000 1,060,641 1,283,141
2008 80,965 2,448,596 2,472,218 - - -
2009 924,497 31,793,021 35,740,935 - - -
2010 145,404 5,507,082 6,251,807 - - -
2011 356,358 7,432,786 8,500,125 80,000 1,569,091 1,769,091
Thereafter 616,200 18,573,984 22,593,218 67,362 1,301,511 1,608,008
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 23,904 $208,316 $208,316 39,353 $4,407,642 $4,434,966(1)
2003 128,105 930,042 930,042 165,438 4,079,119 4,091,119
2004 - - - 71,761 4,729,129 4,829,147
2005 - - - 58,116 2,024,800 2,109,425
2006 - - - 32,525 1,627,838 1,670,997
2007 - - - - - -
2008 - - - 5,466 420,253 420,253
2009 - - - - - -
2010 - - - 37,110 715,563 1,494,873
2011 13,349 796,979 845,479
Thereafter - - - 210,978 6,283,962 6,459,261
(1) Includes $1,260,000 (at expiration) of annual revenue from Prudential Center
retail kiosks for which there is zero square footage assigned.
29
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE GREATER WASHINGTON PROPERTIES
LEASE EXPIRATIONS
GREATER WASHINGTON
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 193,617 $ 5,520,688 $ 5,520,688 247,754 $4,079,816 $4,079,816
2003 138,841 3,563,205 3,716,576 54,894 878,650 901,098
2004 505,276 16,693,606 17,048,801 74,667 1,150,230 1,217,161
2005 465,639 15,703,834 17,182,585 131,290 1,657,193 1,785,894
2006 933,035 37,360,999 39,658,594 64,394 970,789 1,088,191
2007 546,997 20,112,394 17,395,697 144,182 2,760,339 2,827,895
2008 399,355 16,055,347 12,695,839 - - -
2009 433,461 14,618,363 16,173,691 - - -
2010 432,556 16,108,103 19,351,631 79,971 1,136,750 1,136,750
2011 955,927 27,462,978 33,200,586 57,321 797,010 797,010
Thereafter 1,404,939 45,934,046 53,451,811 252,696 4,259,214 4,857,782
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 - $- $- 6,009 $239,480 $ 239,480
2003 - - - - - -
2004 - - - 9,960 237,259 248,402
2005 - - - 3,188 96,069 97,409
2006 - - - 3,309 110,487 110,971
2007 - - - 11,439 198,763 204,998
2008 - - - 16,338 561,135 656,226
2009 - - - 2,996 - -
2010 - - - 16,553 368,565 434,332
2011 11,221 446,987 515,650
Thereafter - - - 25,030 659,699 1,023,499
30
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
LEASE EXPIRATIONS
GREATER SAN FRANCISCO
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 231,287 $ 9,216,525 $ 9,216,525 40,086 $552,450 $552,450
2003 627,800 26,316,339 26,338,486 34,864 557,307 572,850
2004 729,037 31,910,253 32,100,473 10,200 180,168 215,208
2005 293,739 13,344,981 14,006,878 31,519 458,712 495,777
2006 926,990 43,336,624 45,503,753 6,500 106,548 118,308
2007 413,359 18,000,397 19,346,493 - - -
2008 155,420 6,515,850 6,712,434 - - -
2009 234,997 9,949,982 10,544,558 - - -
2010 103,266 6,813,543 8,119,831 - - -
2011 192,689 17,377,325 17,869,919
Thereafter 20,178 736,656 1,246,572 - - -
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 - $ - $ - 36,967 $1,814,377 $1,826,065
2003 - - - 31,454 1,428,846 1,487,984
2004 200,213 1,163,249 1,220,900 21,989 1,033,887 1,050,496
2005 - - - 26,823 1,167,095 1,208,373
2006 - - - 18,042 852,955 869,660
2007 20,000 227,568 258,279 17,990 965,108 1,044,866
2008 - - - 19,545 1,005,853 1,041,775
2009 - - - 34,316 1,428,832 1,550,484
2010 - - - 30,749 1,266,291 1,440,089
2011 3,474 179,498 216,021
Thereafter - - - 17,735 1,232,815 1,318,174
31
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
LEASE EXPIRATIONS
MIDTOWN MANHATTAN
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 207,360 $ 11,633,013 $ 11,633,013 - $- $-
2003 141,831 5,692,905 5,692,905 - - -
2004 162,695 8,812,604 8,888,756 - - -
2005 82,289 4,094,276 4,131,285 - - -
2006 274,256 14,911,993 15,214,023 - - -
2007 177,449 9,623,829 10,007,948 - - -
2008 429,897 22,222,426 25,234,559 - - -
2009 253,681 13,232,448 15,410,207 - - -
2010 250,022 15,140,565 16,371,671 - - -
2011 390,124 19,560,314 25,126,599
Thereafter 1,950,251 100,727,163 120,613,677 - - -
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 - $- $- 1,010 $ 57,560 $ 59,089
2003 - - - 3,865 418,278 442,758
2004 - - - 3,800 245,514 266,293
2005 - - - 2,819 329,038 364,900
2006 - - - 15,992 669,169 709,684
2007 - - - 10,989 1,055,463 1,160,042
2008 - - - 3,232 151,726 168,268
2009 - - - - - -
2010 - - - 9,895 442,655 551,880
2011 13,080 1,096,527 1,273,301
Thereafter - - - 56,043 2,699,272 3,667,744
32
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
LEASE EXPIRATIONS
PRINCETON/EAST BRUNSWICK
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 12,427 $ 365,877 $ 365,877 - $- $-
2003 114,485 3,184,048 3,184,048 - - -
2004 400,103 11,476,019 11,532,120 - - -
2005 228,370 6,737,044 6,846,115 - - -
2006 89,754 2,837,120 3,001,737 - - -
2007 477,968 12,487,077 13,853,307 - - -
2008 - - - - - -
2009 143,485 4,210,166 4,827,932 - - -
2010 145,675 4,588,490 5,002,844 - - -
2011 254,941 7,537,877 8,410,197
Thereafter 184,089 5,318,057 5,701,203 - - -
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 - $- $- - $- $-
2003 - - - - - -
2004 - - - - - -
2005 - - - - - -
2006 - - - - - -
2007 - - - - - -
2008 - - - - - -
2009 - - - - - -
2010 - - - - - -
2011
Thereafter - - - - - -
33
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
IN-SERVICE OTHER PROPERTIES
LEASE EXPIRATIONS
OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA)
OFFICE OFFICE/TECHNICAL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 108,375 $ 2,505,595 $ 2,505,595 - $- $-
2003 177,444 3,891,153 3,939,017 - - -
2004 123,253 2,688,620 2,796,408 - - -
2005 394,855 9,649,587 10,214,875 - - -
2006 728,696 20,515,508 21,525,673 - - -
2007 80,104 2,762,982 2,940,213 - - -
2008 207,959 3,771,304 4,566,092 - - -
2009 127,720 2,415,108 2,993,080 - - -
2010 13,557 151,318 151,318 - - -
2011 4,618 107,188 136,050
Thereafter 4,660 93,200 140,973 - - -
INDUSTRIAL RETAIL
---------------------------------------------------------- ----------------------------------------------------------
Annualized Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
- ------------- ------------------ ------------------ -------------------- ------------------ ------------------ --------------------
2002 161,000 $695,750 $695,750 6,024 $111,665 $111,665
2003 - - - 3,976 86,215 89,120
2004 - - - 2,183 76,065 76,492
2005 - - - 2,096 90,636 98,898
2006 - - - 6,840 225,660 225,660
2007 - - - 6,700 245,293 260,293
2008 - - - - - -
2009 - - - - - -
2010 - - - 625 14,496 18,877
2011
Thereafter - - - - - -
34
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
LONG WHARF MARRIOTT - BOSTON
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
-------------- -------------- -------- ------- -------- -------
Occupancy 78.8% 85.2% -7.5% 81.0% 89.3% -9.3%
Average Daily Rate $197.81 $279.79 -29.3% $227.42 $260.39 -12.7%
REVPAR $155.82 $238.24 -34.6% $184.21 $232.53 -20.8%
CAMBRIDGE CENTER MARRIOTT
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
-------------- -------------- ------- ------- ------- -------
Occupancy 65.6% 81.8% -19.8% 76.7% 85.9% -10.7%
Average Daily Rate $182.81 $223.81 -18.3% $191.24 $209.98 -8.9%
REVPAR $119.93 $183.03 -34.5% $146.68 $180.37 -18.7%
RESIDENCE INN BY MARRIOTT
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
-------------- -------------- -------- -------- -------- -------
Occupancy 82.9% 88.7% -6.5% 87.1% 91.6% -4.9%
Average Daily Rate $136.39 $179.29 -23.9% $154.77 $172.56 -10.3%
REVPAR $113.07 $159.08 -28.9% $134.80 $158.06 -14.7%
TOTAL SAME PROPERTY HOTEL PERFORMANCE
Fourth Quarter Fourth Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
-------------- -------------- --------- --------- -------- -------
Occupancy 74.3% 84.5% -12.1% 80.5% 88.4% -8.9%
Average Daily Rate $178.80 $235.83 -24.2% $197.39 $221.36 -10.8%
REVPAR $132.18 $199.07 -33.6% $158.50 $195.59 -19.0%
35
<Page>
BOSTON PROPERTIES, INC.
FOURTH 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 22,746,796 1,832,720 610,486 937,874 26,127,876
Percent of in-service properties 86.6% 96.8% 100.0% 100.0% 89.8%
Occupancy @ 12/31/00 99.0% 98.0% 96.9% - 98.9%
Occupancy @ 12/31/01 95.8% 97.9% 87.3% - 95.8%
Percent change from 4th quarter 2001
over 4th quarter 2000
Revenue 5.2% 10.5% -7.2% -15.8% 4.5%
Expense 8.3% 8.3% 6.4% 11.3% 8.3%
Net Operating Income 3.8% 11.1% -10.8% -20.3% 2.8%
SAME PROPERTY LEASE ANALYSIS - DECEMBER 31, 2001
Office Office/Technical Industrial Total
------ ---------------- ---------- -----
Vacant space available @10/01/01 (sf) 928,843 48,623 77,264 1,054,730
Square footage of leases expiring or
terminated 10/01/01-12/31/01 720,563 181,068 - 901,631
------------ ---------- --------- ------------
Total space for lease (sf) 1,649,406 229,691 77,264 1,956,361
============ ========== ========= ============
New tenants (sf) 273,164 79,549 - 352,713
Renewals (sf) 222,877 111,731 - 334,608
------------ ---------- --------- ------------
Total space leased (sf) 496,041 191,280 - 687,321
============ ========== ========= ============
Space available @ 12/31/01 (sf) 1,153,365 38,411 77,264 1,269,040
============ ========== ========= ============
Net increase (decrease) in leased space (sf) (224,522) 10,212 - (214,310)
Average lease term (months) 67 70 - 68
2nd generation TI/Comm PSF $ 7.97 $ 3.59 $ - $ 6.76
Increase in 2nd generation net rents (1) 55.5% 13.2% - 51.2%
(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
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
ALL IN-SERVICE PROPERTIES - QUARTER ENDED DECEMBER 31, 2001
Office Office/Technical Industrial Total
------ ---------------- ---------- -----
Vacant space available @ 10/01/01 (sf) 1,132,670 48,623 77,264 1,258,557
Square footage of leases expiring or
terminated 10/01/01-12/31/01 727,268 181,068 - 908,336
------------ ---------- --------- ------------
Total space for lease (sf) 1,859,938 229,691 77,264 2,166,893
============ ========== ========= ============
New tenants (sf) 406,995 79,549 - 486,544
Renewals (sf) 222,877 111,731 - 334,608
------------ ---------- --------- ------------
Total space leased (sf) 629,872 191,280 - 821,152(2)
============ ========== ========= ============
Space available @ 12/31/01 (sf) 1,230,066 38,411 77,264 1,345,741
============ ========== ========= ============
Net increase/(decrease) in leased space (sf) (97,396) 10,212 - (87,184)
Average lease term (months) 98 70 - 92
2nd generation TI/Comm PSF $8.14 $3.59 $ - $6.88
Increase in 2nd generation net rents (1) 55.5% 13.2% - 51.2%
(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 821,152 SF equals 129,959 SF 1st generation and
691,183 SF 2nd generation.
37
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
HISTORICAL CAPITAL EXPENDITURES
(IN THOUSANDS)
YTD 2001 Q4 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999 1998 1997
-------- ------- ------- ------- ------- ------- ------- ------ ------
Recurring capital expenditures $11,770 $3,298 $2,309 $3,425 $2,738 $11,201 $11,611 $3,543 $1,125
======= ======= ======= ======= ======= ======= ======= ====== ======
Hotel improvements, equipment upgrades
and replacements $ 7,935 $ 496 $1,089 $4,069 $2,281 $ 5,697 $ 2,346 $3,872 $2,625
======= ======= ======= ======= ======= ======= ======= ====== ======
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS
YTD 2001 Q4 2001 Q3 2001 Q2 2001 Q1 2001 2000 1999 1998 1997
-------- ------- ------- ------- ------- ------- ------- ------ ------
Office
Square feet 2,394,291 499,913 832,960 497,756 563,662 2,913,599 2,115,281 648,291 1,016,427
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Tenant improvement and lease
commissions p.s.f. $17.47 $ 8.14 $ 28.15 $ 12.06 $ 14.72 $13.82 $ 10.60 $ 9.82 $ 10.83
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Office/Technical
Square feet 348,178 191,280 111,915 10,696 34,287 694,536 167,231 113,428 169,878
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Tenant improvement and lease
commissions p.s.f. $3.13 $ 3.59 $ 2.30 $ 3.34 $ 3.19 $ 2.95 $ 1.94 $ 3.32 $ 2.22
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Industrial
Square feet - - - - - 209,125 163,962 320,608 258,795
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Tenant improvement and lease
commissions p.s.f. $ - $ - $ - $ - $ - $ 1.38 $ 0.60 $ 1.13 $ 0.99
---------- -------- -------- -------- -------- ---------- ---------- -------- ----------
Average tenant improvement and
lease commission p.s.f. $ 15.65 $ 6.88 $ 25.09 $ 11.88 $ 14.05 $ 11.16 $ 9.34 $ 6.57 $ 8.06
========== ======== ======== ======== ======== ========== ========== ======== ==========
38
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
AS OF DECEMBER 31, 2001
ACQUISITIONS
Anticipated
Initial Future Total Current
Property Date Acquired Square Feet Investment Investment Investment Occupancy
- -------- ------------- ----------- ---------- ------------ ------------ ---------
77 Fourth Avenue - land Feb-01 n/a $ 13,000,000 $ - $ 13,000,000 n/a
Citigroup Center Apr-01 1,577,564 755,000,000 - 755,000,000 99%
Reston Eastgate - land Dec-01 n/a 8,600,000 8,600,000 n/a
Intersection Route 20/128 - land Dec-01 n/a 18,000,000 - 18,000,000 n/a
----------- ------------ ----------- ------------ ---------
TOTAL VALUE CREATION PIPELINE - 1,577,564 $794,600,000 $ - $794,600,000 99%
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
Belvedere Condominium/Retail Land Dec-01 n/a 11,034,319 8,225,829 2,808,490
----------- ------------ ----------- -----------
TOTAL DISPOSITIONS 261,990 $25,221,489 $14,334,449 $10,887,040
=========== ============ =========== ===========
39
<Page>
BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
AS OF DECEMBER 31, 2001
Anticipated Current
Initial Stabilization # of Square Investment Total Percentage
Development Properties Occupancy Date Location Buildings feet to Date Investment(1) Leased
- ---------------------- --------- ---- -------- --------- ---- ------- ---------- ------
111 Huntington Avenue
- Prudential Center Q3 2001 Q4 2002 Boston, MA 1 859,484 $ 276,916,812 $ 290,000,000 95%
111 Huntington Avenue - retail Q3 2001 Q3 2002 Boston, MA - 93,789 n/a n/a 61%
One and Two Discovery Square
(50% ownership) Q4 2001 Q1 2003 Reston, VA 2 363,995 29,644,317 41,204,000(2) 65%
ITT Educational Services Q1 2002 Q1 2002 Springfield, VA 1 32,114 3,785,788 5,740,000 100%
5 Times Square Q1 2002 Q2 2002 New York, NY 1 1,099,154 418,364,009 536,115,000 100%
Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA 1 304,051 56,510,296 95,446,000 19%
Broad Run Business Park
- Building E Q2 2002 Q4 2002 Dulles, VA 1 127,226 11,904,194 19,946,000 55%
7702 Boston Boulevard Q3 2002 Q3 2002 Springfield, VA 1 43,171 1,575,806 7,286,000 100%
Two Freedom Square
(50% ownership) Q3 2002 Q3 2004 Reston, VA 1 401,891 28,251,897 49,336,000(2) 58%
Shaws Supermarket Q2 2003 Q2 2003 Boston, MA 1 57,235 10,419,152 24,034,000 100%
611 Gateway Boulevard Q4 2003 Q1 2004 S.San Francisco, CA 1 249,732 43,491,261 81,221,000 0%
Times Square Tower Q4 2003 Q2 2004 New York, NY 1 1,218,511 250,692,311 653,500,000 51%
-- --------- -------------- -------------- ----
TOTAL DEVELOPMENT PROPERTIES 12 4,850,353 $1,131,555,843 $1,803,828,000 69%
== ========= ============== ============== ====
DEVELOPMENTS PLACED-IN-SERVICE DURING 2001
Placed
In
Service Stabilization # of Square Investment Total Percentage
Date Date Location Buildings feet to Date Investment Leased
------- ------------- -------- --------- ---- ------- ---------- ------
Class A Office Building
302 Carnegie Center Q1 2001 Q3 2002 Princeton, NJ 1 65,063 $ 9,806,104 $13,435,000 86%
New Dominion Tech Park-Building 1 Q1 2001 Q1 2001 Herndon, VA 1 235,201 47,787,089 48,770,000 100%
40 Shattuck Road Q2 2001 Q3 2002 Andover, MA 1 119,499 14,647,729 17,057,000 83%
2600 Tower Oaks Boulevard Q2 2001 Q2 2002 Rockville, MD 1 178,899 33,891,974 38,295,000 80%
Orbital Sciences Phase II-Building 2 Q3 2001 Q3 2001 Dulles, VA 1 160,502 28,308,867 29,900,000 100%
Quorum Office Park-Building 1 Q3 2001 Q3 2001 Chelmsford, MA 1 129,959 16,991,394 19,442,000 100%
Quorum Office Park-Building 2 Q3 2001 Q4 2001 Chelmsford, MA 1 129,959 16,594,736 19,442,000 100%
-- --------- ------------ ------------ -----
TOTAL DEVELOPMENTS PLACED IN SERVICE 7 1,019,082 $168,027,893 $186,341,000 94%
== ========= ============ ============ =====
(1) Includes net revenues during lease-up period and cash component of hedge
contracts.
(2) Represents 50% of the total anticipated project-level investment.
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BOSTON PROPERTIES, INC.
FOURTH QUARTER 2001
VALUE CREATION PIPELINE - OWNED LAND PARCELS
AS OF DECEMBER 31, 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 3 26.7 861,000
Boston, MA 2 0.5 776,000
Washington, DC (1) 1 1.3 550,000
Marlborough, MA 1 50.0 400,000
Weston, MA 1 74.0 350,000
Herndon, VA 2 25.2 383,000
Waltham, MA 1 4.3 202,000
S. San Francisco, CA 1 3.0 121,000
Andover, MA 1 10.0 110,000
-- ----- ---------
28 394.6 7,367,000
== ===== =========
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
AS OF DECEMBER 31, 2001
No. of Developable
Location Parcels Acreage Square Feet
- -------- ------- ------- ------------
Princeton, NJ (2) 14 149.9 1,900,000
Framingham, MA (3) 1 21.5 300,000
Cambridge, MA (4) 1 2.6 165,000
-- ----- ----------
16 174.0 2,365,000
== ===== ==========
(1) 25% interest in land through a joint venture.
(2) $20.00/FAR plus an earnout calculation.
(3) Subject to ground lease.
(4) Prior to January 23, 2002 the cost will be $25.92/ SF of land area. Land
area is approximately 108,000 SF.
41