[BOSTON PROPERTIES LOGO]
This presentation may contain forward-looking statements within the
meaning of the Federal securities laws. Forward-looking statements are
inherently subject to risks and uncertainties, many of which cannot be
predicted with accuracy. Acquisitions that are pursued by Boston Properties
may not be consummated for a variety of reasons, including a failure to reach
agreement with the selling party regarding the acquisition price or other
terms of a contribution or acquisition agreement. Information contained in
this presentation regarding current and future market conditions is based on
the Company's assessment of the market and is subject to the uncertainties
inherent in such an assessment. In particular, national and regional economic
conditions and the rate of new construction and rehabilitation in a market
will affect projected rents and the cost of lease renewals.
DISTRIBUTION BASED ON GAAP NOI AND SF (1)
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CBD SUB
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MARKETS SF %SF GAAP NOI % NOI SF %SF GAAP NOI %NOI
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New York NY 8,471,197 20% $78.2 34.4% - 0% - 0.0%
Boston BOS 6,662,812 16% $36.6 16.1% 4,574,990 11% $15.9 7.0%
Washington DC DC 4,695,009 11% $18.2 8.0% 5,975,308 14% $23.0 10.1%
San Francisco SF 5,056,174 12% $32.6 14.3% 1,181,853 3% $3.6 1.6%
Princeton NJ - 0% $0.0 0.0% 2,769,482 6% $9.9 4.3%
Other OTH 3,279,615 8% $9.2 4.1% 161,000 0% $0.2 0.1%
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Total 28,164,807 66% $174.8 77% 14,662,633 34% $52.5 23.1%
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ALL PROPERTIES
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MARKETS SF %SF GAAP NOI %NOI
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New York NY 8,471,197 20% $78.2 34.4%
Boston BOS 11,237,802 26% $52.5 23.1%
Washington DC DC 10,670,317 25% $41.2 18.1%
San Francisco SF 6,238,027 15% $36.1 15.9%
Princeton NJ 2,769,482 6% $9.9 4.3%
Other OTH 3,440,615 8% $9.4 4.1%
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Total 42,827,440 100% $227.3 100%
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(1) NOI based on Q3 2002 actuals and assumes full quarter of operation for
399 Park Ave.
THIRD QUARTER 2002
TOP 20 TENANTS BY SQUARE FEET LEASED
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% OF
TENANT SQ. FT. PORTFOLIO
------ ------- ---------
1 U.S. Government 2,305,973 7.03%
2 Citibank, N.A. 1,331,773 4.06%
3 Ernst and Young 1,062,203 3.24%
4 Lockheed Martin Corporation 676,414 2.06%
5 Shearman & Sterling 494,808 1.51%
6 Gillette Company 488,177 1.49%
7 Lehman Brothers 436,723 1.33%
8 Parametric Technology Corp. (1) 380,987 1.16%
9 Washington Group International 365,245 1.11%
10 Deutsche Bank 346,617 1.06%
11 Orbital Sciences Corporation 337,228 1.03%
12 Wachovia 319,966 0.98%
13 TRW, Inc. 315,675 0.96%
14 Hunton & Williams 311,285 0.95%
15 T. Rowe Price Associates, Inc. 304,129 0.93%
16 Digitas 279,182 0.85%
17 Accenture (1) 265,622 0.81%
18 Marsh USA Inc. 260,362 0.79%
19 Tellabs Operations, Inc. 259,918 0.79%
20 Covance, Inc. 258,831 0.79%
Total % of Portfolio Square Feet 32.95%
Total % of Portfolio Revenue 34.02%
(1) These tenants occupy space in a property in which Boston Properties has
a 25% interest.
BXP's average lease term is 7.2 years - the industry leader
% of total SF expiring
YEAR OF LEASE PERCENTAGE OF
EXPIRATION TOTAL SQUARE FEET
2002 (2) 1.5%
2003 5.3%
2004 9.4%
2005 8.1%
2006 12.5%
2007 8.0%
2008 4.5%
2009 6.7%
2010 4.2%
2011 8.7%
2012 + 25.4%
Gross Rent of expiring leases (1)
YEAR OF $ (MM) %
EXPIRATION
2002 (2) $17.5 1.4%
2003 52.9 4.3%
2004 106.2 8.6%
2005 95.9 7.7%
2006 163.7 13.2%
2007 92.7 7.5%
2008 58.5 4.7%
2009 82.6 6.7%
2010 60.0 4.8%
2011 111.2 9.0%
2012 + 397.9 32.1%
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Totals $1,239.3 100.0%
(1) Based on currently payable base rent as of September 30, 2002
(2) October 1 - December 31, 2002
SUMMARY OF CURRENT DEVELOPMENT ACTIVITY
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CURRENT
TOTAL PERCENTAGE
DEVELOPMENT PROPERTIES LOCATION SQUARE FEET LEASED
---------------------- -------- ----------- ------
Broad Run Business Park- Building E Dulles, VA 127,226 55%
Two Discovery Square (50% ownership) Reston, VA 184,487 81%
Shaws Supermarket Boston, MA 57,235 100%
Waltham Weston Corporate Center Waltham, MA 304,051 41%
New Dominion Tech, Building Two Herndon, VA 257,400 100%
Two Freedom Square (50% ownership) Reston, VA 405,252 58%
Times Square Tower New York, NY 1,218,511 0%
901 New York Avenue (25% ownership) Washington, D.C. 538,464 60%
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TOTAL DEVELOPMENT PROPERTIES 3,092,625 39%
========= =========
PROJECTED LEFT TO
DEVELOPMENT PROPERTIES COST ($MM) FUND ($MM) STABILIZATION DATE
---------------------- ---------- ---------- ------------------
Broad Run Business Park- Building E $19.9 $3.9 Q2 2003
Two Discovery Square (50% ownership) 22.6 4.9 Q1 2003
Shaws Supermarket 24.0 6.5 Q2 2003
Waltham Weston Corporate Center 95.4 31.2 Q4 2003
New Dominion Tech, Building Two 67.6 61.1 Q2 2004
Two Freedom Square (50% ownership) 49.3 10.5 Q3 2004
Times Square Tower 653.5 326.8 Q4 2004
901 New York Avenue (25% ownership) 44.8 30.9 Q3 2005
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TOTAL DEVELOPMENT PROPERTIES $977.3 $476.0
========= =========
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FAD RATIO
Year FAD ratio
- ----------------------------------------
1998 81.05%
1999 74.52%
2000 75.03%
2001 77.74%
Thru Q3 2002 76.67%
FFO/SHARE (DILUTED)
Year FFO/ share (diluted)
- ----------------------------------------
1998 $2.50
1999 $2.89
2000 $3.31
2001 $3.57
2002 E $4.03
4-yr CAGR 12.70%
Note: Company's initial guidance for 2003 is $3.93 - $4.07
TOTAL MARKET CAPITALIZATION ($ MILLIONS)
CONVERTIBLE
PREFERRED
OPERATING CONVERTIBLE OPERATING FLOATING FIXED
COMMON PARTNERSHIP PREFERRED PARTNERSHIP RATE RATE
YEAR STOCK UNITS STOCK UNITS DEBT DEBT TOTAL
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1997 1,279.3 560.64 0 0 244.7 1,087.6 $3,172.2
1998 1,937.6 725.8 0 318.9 446.6 2,642.1 $6,071.0
1999 2,113.7 741.1 81.7 323.0 500.9 2,820.7 $6,581.1
2000 3,768.4 1,038.00 114.2 479.4 404.1 3,010.8 $8,814.9
2001 3,449.7 768.1 99.8 418.4 866.0 3,448.9 $9,050.9
3Q 2002 3,544.2 762.5 0 344.5 2052.9 3,413.8 $10,117.8
CREDIT RATIOS 1997 1998 1999 2000 2001 3Q 2002
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Debt/total market cap 42.0% 50.9% 50.5% 38.7% 47.7% 54.0%
(Debt + preferred)/ total
market cap 42.0% 50.9% 51.7% 40.0% 48.8% 54.0%
Interest coverage 2.4x 2.4x 2.5x 3.1x 2.8x 2.7x
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BXP's financial strategy matches long-term assets with long-term, fixed rate
debt. Approximately $3.4 billion or 62.45% of BXP's debt is fixed rate as of
9/30/02
Debt maturities as of September 30, 2002
$ millions
VARIABLE RATE FIXED RATE DEBT
YEAR DEBT EXPIRING EXPIRING BRIDGE LOAN LINE OF CREDIT
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2002 $30.2 $9.8 $0.0 $0.0
2003 $729.4 $372.8 $1,000.0 $44.0
2004 $245.3 $114.6 $0.0 $0.0
2005 $0.0 $277.8 $0.0 $0.0
2006 $0.0 $284.5 $0.0 $0.0
2007 + $0.0 $2,354.1 $0.0 $0.0
Note: All variable rate debt is construction loans except for $75 million
expiring in 2003