Exhibit 99.1
================================================================================
BOSTON PROPERTIES, INC.
Supplemental Operating and Financial Data
for the Quarter Ended June 30, 2001
================================================================================
Boston Properties, Inc.
Second 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 Grand Total - Office, Office/Technical and Industrial Properties 27
Consolidated Balance Sheets 7 Boston Area Lease Expiration Roll Out 28
Consolidated Income Statements 8 Washington DC Area Lease Expiration Roll Out 29
Funds From Operations 9 San Francisco Area Lease Expiration Roll Out 30
Financial Ratios 10 New York Area Lease Expiration Roll Out 31
Capital Structure 11 Princeton Area Lease Expiration Roll Out 32
Debt Analysis 12-14 Other Area Lease Expiration Roll Out 33
Joint Ventures 15 Hotel Performance 34
Portfolio Overview-Square Footage 16 Same Property Performance 35
Property Listing 17-20 "In-Service" Property Performance 36
Top 20 Tenants 21 Capital Expenditures 37
Portfolio Overview-FFO 22 Value Creation Pipeline - Acquisitions/Dispositions 38
Occupancy Analysis 23 Value Creation Pipeline - Development 39
Office Properties-Lease Expiration Roll Out 24 Value Creation Pipeline - Land Parcels 40
Acquisition Property Profile 41
====================================================================================================================================
2
Boston Properties, Inc.
Second 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, R&D 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 26 development properties adding approximately
3.9 million square feet to its portfolio, representing an investment of
approximately $552.5 million. In addition, the Company is constructing 13
office properties for a total anticipated investment of approximately $1.8
billion. The Company owns or controls land where it can develop an
additional 9.6 million square feet.
3
Boston Properties, Inc.
Second Quarter 2001
INVESTOR INFORMATION
--------------------
Address:
800 Boylston Street 111 Huntington Avenue
Boston, MA 02199 Boston, MA 02199-7610
(617) 236-3300 (617) 236-3300
(617) 536-5087 (fax) (617) 536-5087 (fax)
(After September 1, 2001)
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
Elaine M. Sellmayer Director of Investor Relations
TIMING
------
Quarterly results for 2001 will be announced according to the following
anticipated schedule:
Third Quarter Early November
Year End Early February
4
Boston Properties, Inc.
Second 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):
====================================================================================================================================
2nd Quarter 2001 2nd Quarter 2000
---------------- ----------------
High Price $ 41.0600 $ 38.9688
Low Price $ 36.4700 $ 31.7500
Closing Price $ 40.9000 $ 38.6250
Dividends per share - annualized $ 2.32 $ 2.12
Closing dividend yield - annualized 5.67% 5.49%
Closing shares, common units and preferred units (if converted) outstanding (thousands) 124,369 105,493
Closing market value of shares and units outstanding (thousands) $ 5,086,692 $ 4,074,667
====================================================================================================================================
5
Boston Properties, Inc.
Second Quarter 2001
FINANCIAL HIGHLIGHTS
(unaudited and in thousands)
===============================================================================================================================
Three Months Ended
----------------------------------------------------
June 30, 2001 June 30, 2000 % Change
------------- ------------- --------
Income Items:
------------
Revenue $ 256,269 $ 217,259 17.96%
Net straight line rent $ 6,487 $ 3,807
Lease termination fees $ 2,458 $ 259
Capitalized interest $ 15,800 $ 8,575
Net Income available to common shareholders $ 49,038 $ 34,880 40.59%
Funds from Operations (FFO) before net derivative
losses (SFAS No.133) - basic $ 100,124 $ 80,640 18.29%
Company's share (81.31% and 73.60%, respectively) $ 81,410 $ 59,347 37.18%
FFO before net derivative losses (SFAS 133)
per share - basic $ 0.90 $ 0.87 3.64%
FFO before net derivative losses (SFAS 133)
per share - diluted $ 0.86 $ 0.83 3.68%
Dividends per share $ 0.58 $ 0.53 9.43%
Funds available for distribution (FAD)(1) $ 80,335 $ 67,439 15.06%
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 2.96 2.60 13.86%
Interest Coverage Ratio (including capitalized interest) 2.30 2.25 2.34%
FFO Payout Ratio 67.40% 63.56% 6.04%
FAD Payout Ratio 82.20% 81.65% 0.67%
===============================================================================================================================
===============================================================================================================================
June 30, 2001 December 31, 2000 % Change
------------- ----------------- --------
Capitalization:
--------------
Total Debt $ 4,177,670 $ 3,414,891 22.34%
Total Common Shares Outstanding @ Quarter End 90,351 86,630 4.30%
Total Preferred Shares Outstanding @ Quarter End
(if converted) 2,625 2,625 -0.04%
Total Common Units Outstanding @ Quarter End 20,382 23,862 -14.58%
Total Preferred Units Outstanding @ Quarter End
(if converted) 11,011 11,021 -0.09%
Price @ Quarter End $ 40.9000 $ 43.5000 -5.98%
Equity Value @ Quarter End $ 5,086,692 $ 5,400,003 -5.80%
Total Market Capitalization $ 9,264,362 $ 8,814,894 5.10%
Debt/Total Market Capitalization 45.09% 38.74% 16.40%
===============================================================================================================================
(1) FAD is defined as FFO after adjustments for second generation lease
commissions and TIs, recurring capital expenditures, straight line rents
and nonrecurring charges.
6
Boston Properties, Inc.
Second Quarter 2001
CONSOLIDATED BALANCE SHEETS
(in thousands)
==================================================================================================================================
June 30, 2001 December 31, 2000
---------------------- ----------------------
ASSETS (unaudited)
------
Real estate $ 6,090,113 $ 5,188,296
Development in progress 915,135 817,478
Land held for future development 160,729 107,005
Less accumulated depreciation (647,881) (586,719)
----------- ------------
Total real estate 6,518,096 5,526,060
Cash and cash equivalents 165,764 280,957
Escrows 31,577 85,561
Investments in securities 4,297 7,012
Tenant and other receivables, net 26,337 26,852
Accrued rental income, net 104,304 91,684
Deferred charges, net 100,804 77,319
Prepaid expenses and other assets 47,962 41,154
Investments in unconsolidated joint ventures 94,155 89,871
------------ ------------
Total assets $ 7,093,296 $ 6,226,470
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Mortgage notes and bonds payable 4,177,670 $ 3,414,891
Unsecured Line of Credit - -
Accounts payable and accrued expenses 42,203 57,338
Dividends and distributions payable 78,241 71,274
Interest rate contracts 19,045 -
Accrued interest payable 12,067 5,599
Other liabilities 72,410 51,926
------------ ------------
Total liabilities 4,401,636 3,601,028
------------ ------------
Commitments and contingencies - -
------------ ------------
Minority interests 851,868 877,715
------------ ------------
Series A Convertible Redeemable Preferred Stock, liquidation preference
$50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000
------------ ------------
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,
90,350,510 and 86,630,089 issued and outstanding, respectively 904 866
Additional paid-in capital 1,774,335 1,673,349
Dividends in excess of earnings (19,193) (13,895)
Deferred compensation (2,386) (848)
Accumulated other comprehensive loss (13,868) (11,745)
------------ ------------
Total stockholders' equity 1,739,792 1,647,727
------------ ------------
Total liabilities and stockholders' equity $ 7,093,296 $ 6,226,470
============ ============
==================================================================================================================================
7
Boston Properties, Inc.
Second Quarter 2001
CONSOLIDATED INCOME STATEMENTS
(unaudited and in thousands)
====================================================================================================================================
Three Months Ended
-------------------------------------
30-Jun-01 30-Jun-00 % Change
---------- ---------- ---------
Revenue:
Rental
Base Rent (1) $ 208,071 $ 177,953 16.92%
Recoveries from tenants 27,266 22,734 19.93%
Parking and other 13,533 12,289 10.12%
--------- --------- --------
Total rental revenue 248,870 212,976 16.85%
Development and management services 3,110 2,876 8.14%
Interest and other 4,289 1,407 204.83%
--------- --------- --------
Total revenue 256,269 217,259 17.96%
--------- --------- --------
Expenses:
Operating 76,865 64,035 20.04%
General and administrative 9,880 8,589 15.03%
Interest (2) 55,870 56,243 -0.66%
Depreciation and amortization 36,675 32,395 13.21%
Loss on investments in other companies 6,500 - -
--------- --------- --------
Total expenses 185,790 161,262 15.21%
--------- --------- --------
Income before net derivative losses (SFAS No.133), minority interests and income
from unconsolidated joint ventures 70,479 55,997 25.86%
Net derivative losses (SFAS No.133) (4,733) - -
Minority interest in property partnerships 510 (240) -312.50%
Income from unconsolidated joint ventures 717 662 8.31%
--------- --------- --------
Income before minority interest in Operating Partnership 66,973 56,419 18.71%
Minority interest in Operating Partnership (3) (18,138) (20,193) -10.18%
--------- --------- --------
Income before gain on sale of real estate 48,835 36,226 34.81%
Gain on sale of real estate, net of minority interest 1,851 297 523.23%
--------- --------- --------
Income before preferred dividend 50,686 36,523 38.78%
Preferred dividend (1,648) (1,643) 0.30%
--------- --------- --------
Net income available to common shareholders $ 49,038 $ 34,880 40.59%
========= ========= ========
INCOME PER SHARE OF COMMON STOCK
Net income available to common shareholders per share - basic $ 0.54 $ 0.51 5.88%
========= ========= ========
Net income available to common shareholders per share - diluted $ 0.53 $ 0.50 6.00%
========= ========= ========
====================================================================================================================================
(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 $6,487 and $3,807 for the three months ended June
30, 2001 and 2000, respectively.
(2)Excludes capitalized interest of $15,800 and $8,575 for the three months
ended June 30, 2001 and 2000, respectively.
(3)Equals minority interest
percent of 18.69% and 26.40%, respectively of income before minority
interest in Operating Partnership after deduction for preferred
dividends and distributions.
8
Boston Properties, Inc.
Second Quarter 2001
FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
==================================================================================================================================
Three Months Ended
-------------------------------------------
30-Jun-01 30-Jun-00 % Change
--------- --------- --------
Income from operations before net derivative losses (SFAS No.133),
minority interests and income from unconsolidated joint ventures $ 70,479 $ 55,997 25.86%
Add:
Real estate depreciation and amortization (1) 37,599 32,497 15.70%
Income from unconsolidated joint ventures 717 662 8.31%
Less:
Net derivative losses (SFAS No.133) 4,733 - -
Minority property partnership's share of funds from operations 411 266 54.51%
Preferred dividends and distributions 8,260 8,250 0.12%
---------- ---------- --------
Funds from Operations 95,391 80,640 18.29%
Add:
Net derivative losses (SFAS No.133) 4,733 - -
---------- ---------- --------
Funds from Operations before net derivative losses (SFAS No.133) $ 100,124 $ 80,640 24.16%
========== ========== ========
Funds from Operations available to common shareholders before net
derivative losses (SFAS No. 133)(2) $ 81,410 $ 59,347 37.18%
========== ========== ========
Funds from Operations per share before net derivative losses (SFAS No.133)
- basic $ 0.90 $ 0.87 3.64%
========== ========== ========
Weighted average shares outstanding - basic 89,990 67,991 32.36%
========== ========== ========
Funds from Operations per share before net derivative losses (SFAS No.133)
- diluted $ 0.86 $ 0.83 3.61%
========== ========== ========
Funds from Operations per share after net derivative losses (SFAS No.133)
- diluted $ 0.82 $ 0.83 -1.20%
========== ========== ========
Weighted average shares outstanding - diluted 105,259 82,583 27.46%
========== ========== ========
==================================================================================================================================
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
==================================================================================================================================
For the Three Months Ended June 30, 2001 For the Three Months Ended June 30, 2000
----------------------------------------- ------------------------------------------
Income Shares Per Share Income Shares Per Share
(Numerator) (Denominator) Amount (Numerator) (Denominator) Amount
--------- ------------ ------ ---------- ----------- ------
Basic Funds from Operations before net
derivative losses (SFAS No.133) $ 100,124 110,676 $ 0.90 $ 80,640 92,385 $ 0.87
Effect of Dilutive Securities
Convertible Preferred Units 6,612 11,011 (0.02) 6,607 10,376 (0.02)
Convertible Preferred Stock 1,648 2,625 (0.01) 1,643 2,625 (0.01)
Stock Options and other - 1,633 (0.01) 316.00 1,590 (0.01)
--------- -------- -------- ---------- -------- -----------
Diluted Funds from Operations before net
derivative losses (SFAS No.133) $ 108,384 125,945 $ 0.86 $ 89,206 106,976 $ 0.83
========= ======== ======== ========== ======== ===========
Company's share of Diluted Funds from
Operations before net derivative losses
(SFAS No.133) (3) $ 90,581 105,259 $ 0.86 $ 68,864 82,583 $ 0.83
========= ======== ======== ========== ========= =========
==================================================================================================================================
(1) Real estate depreciation includes the Company's share of joint venture
real estate depreciation of $1,376 and $549, less corporate related
depreciation of $452 and $447, for the three months ended June 30,
2001 and 2000, respectively.
(2) Based on weighted average shares for the quarter. Company's share for
the quarter ended June 30, 2001 and 2000 was 81.31% and 73.60%,
respectively.
(3) Based on weighted average diluted shares for the quarter. Company's
share for the quarter ended June 30, 2001 and 2000 was 83.58% and
77.20%, respectively.
9
Boston Properties, Inc.
Second Quarter 2001
FINANCIAL RATIOS
==================================================================================================================
Three months ended
June 30, 2001
--------------------
RATIOS COMPUTED FOR INDUSTRY COMPARISONS:
OPERATIONAL RATIOS (1)
Debt Service Coverage Ratio 2.52
(EBITDA + Income from Unconsolidated Joint Ventures)/(Interest+Principal)
Interest Coverage Ratio (excluding capitalized interest) 2.96
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Interest Coverage Ratio (including capitalized interest) 2.30
(EBITDA + Income from Unconsolidated Joint Venture)/Interest
Return on Shareholder's Equity 16.13%
(EBITDA/Average Equity (book value)) (%)
Return on Real Estate Investments 10.83%
(EBITDA/Average Real Estate Investments (book value)) (%)
Dividend Payout Ratio 67.40%
(Dividends Declared/FFO) (%)
==================================================================================================================
(1) EBITDA is equal to earnings before interest, taxes, depreciation and
amortization.
10
Boston Properties, Inc.
Second Quarter 2001
CAPITAL STRUCTURE
Debt
(in thousands)
========================================================================================================
Aggregate Principal
June 30, 2001
-------------
Mortgage Loans $ 4,177,670
Unsecured Line of Credit -
--------------------
Total Debt $ 4,177,670
====================
========================================================================================================
Equity
(in thousands)
========================================================================================================
Common
Shares & Units Stock $ Value
Outstanding Equivalents Equivalent (1)
----------- ----------- --------------
Common Stock 90,351 90,351 $ 3,695,356
Preferred Stock 2,000 2,625 107,363
Operating Partnership Units 20,382 20,382 833,624
Preferred Operating Partnership Units 9,346 11,011 450,350
------------- -------------------
Total Equity 124,369 $ 5,086,692
============= ===================
Total Market Capitalization $ 9,264,362
===================
========================================================================================================
(1) Value based on June 30, 2001 closing price of $40.90.
11
Boston Properties, Inc.
Second Quarter 2001
DEBT ANALYSIS
Debt Maturities and Principal Payments
(in thousands)
================================================================================================================
Year 2001 (1) 2002 2003 2004 2005 Thereafter Total
---- -------- ---- ---- ---- ---- ---------- -----
Amount $ 131,077 $ 398,718 $ 519,816 $278,564 $276,605 $ 2,572,890 $4,177,670
================================================================================================================
(1) Represents the period from July 1, 2001 through December 31,
2001.
Unsecured Line of Credit - Due March 31, 2003
(in thousands)
================================================================================================================
Outstanding Letters of Remaining
Facility 06/30/2001 Credit Capacity
-------- ---------- ------ --------
$ 605,000 $ - 888 $ 604,113
================================================================================================================
Unsecured and Secured Debt Analysis
================================================================================================================
Weighted Weighted Average
% of Debt Average Rate Maturity
----------- ------------- --------
Unsecured Debt 0.00% 0.00% 1.8 years
Secured Debt 100.00% 7.04% 6.1 years
----------- ------------- ----------------
Total Debt 100.00% 7.04% 6.1 years
=========== ============= ================
================================================================================================================
Floating and Fixed Rate Debt Analysis
================================================================================================================
Weighted Weighted Average
% of Debt Average Rate Maturity
----------- ------------- ----------------
Floating Rate Debt 15.96% 5.76% 2.0 years
Fixed Rate Debt 84.04% 7.29% 6.8 years
----------- ------------- ----------------
Total Debt 100.00% 7.04% 6.1 years
=========== ============= ================
================================================================================================================
12
Boston Properties, Inc.
Second Quarter 2001
DEBT ANALYSIS
Debt Maturities and Principal Payments
(in thousands)
===================================================================================================================================
Property 2001 (1) 2002 2003 2004 2005 Thereafter Total
----------------------------------------------- -------- --------- --------- --------- --------- ---------- ---------
Citigroup Center $ 2,543 $ 5,365 $ 5,763 $ 6,191 $ 6,651 $ 498,073 $ 524,586
Embarcadero Center One, Two and Federal Reserve 2,001 4,207 4,498 4,809 5,141 290,286 310,942
Prudential Center 1,548 4,020 4,299 4,591 4,919 270,580 289,957
280 Park Avenue 1,225 2,595 2,800 3,022 3,261 256,111 269,014
5 Times Square - - 233,029 - - - 233,029
599 Lexington Avenue - - - - 225,000 - 225,000
Embarcadero Center Four 1,203 3,098 3,315 3,544 3,797 138,118 153,075
875 Third Avenue 1,378 148,618 - - - - 149,996
Embarcadero Center Three 823 2,069 2,206 2,351 2,506 135,397 145,352
Times Square Tower - - - 135,820 - - 135,820
111 Huntington Avenue - 126,963 - - - - 126,963
Two Independence Square 391 1,500 113,844 - - - 115,735
Riverfront Plaza 1,218 2,560 2,735 2,921 3,120 101,914 114,468
Democracy Center 808 1,703 1,828 1,961 2,103 98,407 106,810
Embarcadero Center West Tower 539 1,358 1,449 1,546 1,649 90,416 96,957
100 East Pratt Street 683 1,717 1,836 1,964 2,100 82,757 91,057
601 and 651 Gateway Boulevard 359 766 832 905 984 85,698 89,544
One Independence Square 73,857 - - - - - 73,857
Reservoir Place 972 2,669 2,859 3,061 3,279 60,067 72,907
One & Two Reston Overlook 363 764 823 65,894 - - 67,844
2300 N Street - - 66,000 - - - 66,000
202, 206 & 214 Carnegie Center 265 564 610 663 719 59,841 62,662
New Dominion Technology Park, Building 1 - 61 102 91 654 56,702 57,610
Capital Gallery 561 1,191 1,293 1,404 1,524 50,651 56,624
504, 506 & 508 Carnegie Center 350 910 979 1,052 1,136 43,450 47,877
===================================================================================================================================
(1)Represents the period from July 1, 2001 through December 31, 2001.
13
Boston Properties, Inc.
Second Quarter 2001
DEBT ANALYSIS
Debt Maturities and Principal Payments (continued)
(in thousands)
====================================================================================================================================
Property 2001 (1) 2002 2003 2004 2005 Thereafter Total
--------------------------------- ----------- -------- ------- ------- -------- ---------- ----------
10 and 20 Burlington Mall Road 37,000 - - - - - 37,000
10 Cambridge Center 202 514 559 607 659 32,929 35,470
1301 New York Avenue 489 1,129 1,217 1,315 1,417 26,591 32,158
Waltham Weston Corporate Center - - - 29,293 - - 29,293
Sumner Square 244 28,655 - - - - 28,899
Eight Cambridge Center 207 477 516 557 601 25,837 28,195
510 Carnegie Center 196 508 547 588 635 24,938 27,412
Lockheed Martin Building 266 562 601 641 685 23,313 26,068
Orbital Sciences - Phase 1 - 25,761 - - - - 25,761
2600 Tower Oaks Boulevard - 25,160 - - - - 25,160
University Place 242 611 655 702 752 22,009 24,971
Reston Corporate Center 254 537 574 612 654 21,966 24,597
191 Spring Street 148 374 407 443 482 20,773 22,627
Quorum Office Park - - 22,019 - - - 22,019
Bedford Business Park 228 583 634 690 751 18,567 21,453
NIMA Building 219 465 497 530 566 19,034 21,311
Orbital Sciences - Phase 2 - - 19,127 - - - 19,127
Andover Office Park, Building One - - 13,655 - - - 13,655
101 Carnegie Center 127 322 348 375 406 6,622 8,200
Montvale Center 69 146 160 173 189 6,762 7,499
302 Carnegie Center - - 6,969 - - - 6,969
Hilltop Business Center 83 175 187 200 214 4,812 5,671
201 Carnegie Center 16 41 44 48 51 269 469
--------- -------- -------- -------- -------- ---------- ----------
$131,077 $398,718 $519,816 $278,564 $276,605 $2,572,890 $4,177,670
========= ======== ======== ======== ======== ========== ==========
====================================================================================================================================
(1) Represents the period from July 1, 2001 through December 31, 2001.
14
Boston Properties, Inc.
Second Quarter 2001
JOINT VENTURES
(unaudited and in thousands)
as of June 30, 2001
====================================================================================================================================
One Market 140 265 901 Two
Freedom Square Metropolitan Kendrick Franklin Discovery New York Freedom
Square North Square Street Street Square (2) Avenue (2) Square (2) Combined
--------- --------- ------------ --------- --------- ---------- ----------- --------- --------
Total Equity (1) $ 1,386 $ 13,996 $ 31,639 $ 5,865 $ 10,692 $ 6,280 $ 11,695 $ 12,602 $ 94,155
========= ========= ============ ========= ========= ========== =========== ========= ========
Mortgage/Construction
loans payable (1) $ 19,217 $ 49,720 $ 70,781 $ 14,250 $ 23,800 $ 13,729 $ - $ 1,669 $193,166
========= ========= ============ ========= ========= ========== =========== ========= ========
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 June 30, 2001
====================================================================================================================================
One Market 140 265 901 Two
Freedom Square Metropolitan Kendrick Franklin Discovery New York Freedom
Square North Square Street Street Square (2) Avenue (2) Square (2) Combined
--------- --------- ------------ --------- --------- ---------- ----------- --------- --------
REVENUE
Total revenue $ 3,284 $ 4,986 $ 5,506 $ 2,747 $ 2,959 $ - $ - $ - $19,482(3)
-------- --------- ---------- --------- --------- ---------- ----------- --------- --------
EXPENSES
Operating 1,028 1,317 1,854 426 1,067 - - - 5,692
Interest 1,496 1,916 2,858 876 1,145 - - - 8,291
Depreciation and
amortization 866 626 1,090 343 587 - - - 3,512
-------- --------- ---------- --------- --------- ---------- ----------- --------- --------
Total expenses 3,390 3,859 5,802 1,645 2,799 - - - 17,495
-------- --------- ---------- --------- --------- ---------- ----------- --------- --------
Net income $ (106) $ 1,127 $ (296) $ 1,102 $ 160 $ - $ - $ - $ 1,987
======== ========= ========== ======== ========= ========== =========== ========= ========
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 $ (27) $ 563 $ (151) $ 276 $ 56 $ - $ - $ - $ 717
======== ========= ========== ======== ========= ========== =========== ========= ========
====================================================================================================================================
(1) Represents the Company's share.
(2) Property is currently under development.
(3) The impact of the straight-line rent adjustment increased revenue by $988
for the three months ended June 30, 2001.
15
Boston Properties
Second 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 6,253,819 (2) 545,206 169,273 6,968,298 24.46%
Greater Washington 6,494,087 (3) 1,140,414 - 7,634,501 26.80%
Greater San Francisco 4,454,689 144,366 280,213 4,879,268 17.13%
Midtown Manhattan 4,432,890 - - 4,432,890 15.56%
Princeton/East Brunswick, NJ 2,336,960 - - 2,336,960 8.20%
Baltimore, MD 1,174,629 - - 1,174,629 4.12%
Richmond, VA 900,637 - - 900,637 3.16%
Bucks County, PA - - 161,000 161,000 0.57%
------------- ------------ ------------ ------------- ------------
26,047,711 1,829,986 610,486 28,488,183 100.00%
============= ============ ============ ============= ============
% of Total 91.43% 6.2% 2.14% 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, 584,682 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.
Second Quarter 2001
Property Listing
as of June 30, 2001
====================================================================================================================================
Annualized
Revenue
Number of Per
---------
Sub Market Buildings Square Feet Occupied % Occupied SF
---------- ---------- ----------- ---------- -----------
Greater Boston
Office
The Prudential Center CBD Boston MA 3 2,150,828 96.6% $ 36.15
265 Franklin Street (35% ownership) CBD Boston MA 1 326,128 56.7% 53.90
One Cambridge Center East Cambridge MA 1 215,385 100.0% 39.21
Three Cambridge Center East Cambridge MA 1 107,484 100.0% 27.07
Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 29.77
Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 31.56
Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 39.64
University Place Mid-Cambridge MA 1 195,282 100.0% 31.66
Reservoir Place Route 128 Mass Turnpike MA 1 529,991 90.7% 32.84
204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 100.0% 26.46
140 Kendrick Street (25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 29.63
170 Tracer Lane Route 128 Mass Turnpike MA 1 73,258 100.0% 41.00
Waltham Office Center Route 128 Mass Turnpike MA 3 131,479 91.3% 29.36
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 26.84
200 West Street Route 128 Mass Turnpike MA 1 248,048 92.5% 31.54
10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 86.0% 29.90
Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 21.10
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 16.13
91 Hartwell Avenue Route 128 Northwest MA 1 122,135 100.0% 31.76
92 Hayden Avenue Route 128 Northwest MA 1 32,859 100.0% 34.01
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 34.06
33 Hayden Avenue Route 128 Northwest MA 1 79,564 100.0% 24.89
Lexington Office Park Route 128 Northwest MA 2 167,293 100.0% 29.69
191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 28.33
181 Spring Street Route 128 Northwest MA 1 53,595 100.0% 34.82
201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 31.63
40 Shattuck Road Route 128 Northwest MA 1 120,000 66.2% 22.87
Newport Office Park Route 128 South MA 1 168,829 100.0% 23.55
----- ------------------------------------
36 6,253,819 94.3% $ 33.22
----- ------------------------------------
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% 13.73
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 10.00
164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 9.31
----- ------------------------------------
5 545,206 100.0% $ 13.69
----- ------------------------------------
Industrial
40-46 Harvard Street Route 128 Southwest MA 1 169,273 89.8% 7.07
----- ------------------------------------
Total Greater Boston: 42 6,968,298 94.6%
===== =====================
====================================================================================================================================
17
Boston Properties, Inc.
Second Quarter 2001
Property Listing
as of June 30, 2001
====================================================================================================================================
Annualized
Number of Revenue
--------- Per
Sub Market Buildings Square Feet Occupied % Occupied SF
---------- ---------- ----------- --------- -----------
Greater Washington, DC
Office
2300 N Street West End Washington DC 1 276,930 100.0% $ 49.31
One Independence Square Southwest Washington DC 1 337,794 100.0% 40.12
Two Independence Square Southwest Washington DC 1 579,665 100.0% 37.50
Capital Gallery Southwest Washington DC 1 396,894 98.1% 34.72
500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 31.76
Metropolitan Square (51% ownership) East End Washington DC 1 584,682 99.7% 36.40
1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.14
Market Square North (50% ownership) East End Washington DC 1 401,279 100.0% 41.48
Sumner Square CBD Washington DC 1 207,620 99.8% 32.26
Decoverly Two Montgomery County MD 1 77,747 98.7% 22.80
Decoverly Three Montgomery County MD 1 77,040 100.0% 22.62
Democracy Center Montgomery County MD 3 681,329 90.1% 27.82
Montvale Center Montgomery County MD 1 120,823 100.0% 21.77
2600 Tower Oaks Boulevard Montgomery County MD 1 178,899 70.3% 30.88
Orbital Sciences, Buildings One and Three Loudoun County 2 176,726 100.0% 23.03
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% 33.14
One Reston Overlook Fairfax County VA 1 312,685 100.0% 21.58
Two Reston Overlook Fairfax County VA 1 131,594 100.0% 32.09
New Dominion Technology Park Fairfax County VA 1 235,201 100.0% 26.70
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
-------------------------------------------------
27 6,494,087 98.0% $ 33.89
-------------------------------------------------
Office/Technical
Fullerton Square Fairfax County VA 2 178,294 87.0% 11.78
Sugarland Business Park, Building One Fairfax County VA 1 52,797 100.0% 22.19
Sugarland Business Park, Building Two Fairfax County VA 1 59,215 100.0% 21.45
7435 Boston Boulevard Fairfax County VA 1 103,557 100.0% 14.02
7451 Boston Boulevard Fairfax County VA 1 47,001 100.0% 15.29
7450 Boston Boulevard Fairfax County VA 1 60,827 100.0% 16.98
7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.82
8000 Grainger Court Fairfax County VA 1 90,465 100.0% 11.34
7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.16
7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 23.47
7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 14.29
7600 Boston Boulevard Fairfax County VA 1 69,832 100.0% 14.60
7375 Boston Boulevard Fairfax County VA 1 26,865 100.0% 15.44
8000 Corporate Court Fairfax County VA 1 52,539 100.0% 9.27
7700 Boston Boulevard Fairfax County VA 1 82,224 100.0% 21.49
-------------------------------------------------
16 1,140,414 98.0% $ 15.55
-------------------------------------------------
-----------------------------------
Total Greater Washington: 43 7,634,501 98.0%
===================================
====================================================================================================================================
18
Boston Properties, Inc.
Second Quarter 2001
Property Listing
as of June 30, 2001
====================================================================================================================================
Annualized
Number of Revenue
---------- Per
Sub Market Buildings Square Feet Occupied % Occupied SF
---------- --------- ----------- ---------- -----------
Midtown Manhattan
Office
599 Lexington Avenue Park Avenue NY 1 1,000,497 100.0% $ 56.46
280 Park Avenue Park Avenue NY 1 1,165,010 99.3% 46.88
Citigroup Center Park Avenue NY 1 1,578,901 100.0% 53.28
875 Third Avenue East Side NY 1 688,482 99.7% 48.82
----------------------------------------------------------
Total Midtown Manhattan: 4 4,432,890 99.8% $ 51.63
==========================================================
Princeton/East Brunswick, NJ
Office
101 Carnegie Center Princeton NJ 1 124,049 100.0% 26.06
104 Carnegie Center Princeton NJ 1 102,830 100.0% 30.11
105 Carnegie Center Princeton NJ 1 69,648 100.0% 28.19
201 Carnegie Center Princeton NJ - 6,500 100.0% 21.79
202 Carnegie Center Princeton NJ 1 128,705 100.0% 28.88
210 Carnegie Center Princeton NJ 1 161,112 100.0% 29.32
211 Carnegie Center Princeton NJ 1 47,025 100.0% 24.09
212 Carnegie Center Princeton NJ 1 148,596 69.8% 29.43
214 Carnegie Center Princeton NJ 1 152,214 100.0% 28.35
206 Carnegie Center Princeton NJ 1 161,763 100.0% 27.51
302 Carnegie Center Princeton NJ 1 65,063 70.9% 32.77
502 Carnegie Center Princeton NJ 1 116,374 100.0% 27.99
510 Carnegie Center Princeton NJ 1 234,160 100.0% 25.82
504 Carnegie Center Princeton NJ 1 121,990 100.0% 28.28
506 Carnegie Center Princeton NJ 1 150,888 100.0% 26.49
508 Carnegie Center Princeton NJ 1 131,085 100.0% 26.74
One Tower Center East Brunswick NJ 1 414,958 96.5% 31.25
----------------------------------------------------------
Total Princeton/East Brunswick, NJ 16 2,336,960 96.6% $ 28.38
==========================================================
Greater San Francisco
Office
Embarcadero Center One CBD San Francisco CA 1 833,434 95.5% 40.02
Embarcadero Center Two CBD San Francisco CA 1 779,097 90.3% 44.72
Embarcadero Center Three CBD San Francisco CA 1 772,013 98.3% 40.39
Embarcadero Center Four CBD San Francisco CA 1 939,111 97.5% 45.32
Federal Reserve CBD San Francisco CA 1 149,592 100.0% 47.10
West Tower CBD San Francisco CA 1 475,120 98.9% 48.06
The Gateway South San Francisco CA 2 506,322 95.5% 36.21
----------------------------------------------------------
8 4,454,689 96.0% $ 43.36
----------------------------------------------------------
Office/Technical
----------------------------------------------------------
Hilltop Office Center South San Francisco CA 9 144,366 97.0% $ 14.38
----------------------------------------------------------
Industrial
560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 6.77
430 Rozzi Place South San Francisco CA 1 20,000 100.0% 9.26
2391 West Winton Hayward CA 1 220,213 72.8% 5.92
----------------------------------------------------------
3 280,213 78.6% $ 6.38
----------------------------------------------------------
Total Greater San Francisco: 20 4,879,268 95.0%
===========================================
====================================================================================================================================
19
Boston Properties, Inc.
Second Quarter 2001
Property Listing
as of June 30, 2001
====================================================================================================================================
Annualized
Revenue
Number of Per
---------
Sub Market Buildings Square Feet Occupied % Occupied SF
---------- --------- ----------- ---------- -----------
Baltimore, MD
Office
Candler Building Baltimore MD 1 539,306 100.0% $ 17.84
100 East Pratt Street Baltimore MD 1 635,323 99.7% 29.68
-----------------------------------------------------
Total Baltimore, MD: 2 1,174,629 99.8% $ 24.24
=====================================================
Richmond, VA
Office
Riverfront Plaza Richmond VA 1 900,637 99.6% $ 23.12
=====================================================
Bucks County, PA
Industrial
38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $ 4.49
=====================================================
Total In-Service Properties: 129 28,488,183 97.0%
==========================================
====================================================================================================================================
20
Boston Properties, Inc.
Second Quarter 2001
TOP 20 TENANTS BY SQUARE FEET LEASED
=========================================================================================================
Tenant Sq. Ft. % of Portfolio
----------------------------------------------- ------------------- ----------------
1 U.S. Government 2,292,866 8.05%
2 Lockheed Martin Corporation 716,653 2.52%
3 Citibank, N.A. 639,971 2.25%
4 Gillette Company 488,177 1.71%
5 Washington Group International 473,429 1.66%
6 Shearman & Sterling 435,496 1.53%
7 Parametric Technology Corp. 380,987 1.34%
8 Orbital Sciences Corporation 337,228 1.18%
9 Hunton & Williams 322,829 1.13%
10 TRW, Inc. 317,921 1.12%
11 First Union 311,695 1.09%
12 Debevoise & Plimpton 307,125 1.08%
13 T. Rowe Price Associates, Inc. 304,129 1.07%
14 Marsh & McLennan, Inc. 302,842 1.06%
15 Parexel International LLC 286,050 1.00%
16 Deutsche Bank 270,528 0.95%
17 Accenture 265,622 0.93%
18 Credit Suisse First Boston Group 260,363 0.91%
19 Covance, Inc. 258,831 0.91%
20 Kirkland & Ellis 241,364 0.85%
=========================================================================================================
Major Signed Deals for Future Development
=========================================================================================================
Tenant Sq. Ft.
----------------------------------------------- -------------------
Ernst & Young 1,062,203
Arthur Anderson, LLP 620,947
Tellabs Operations Inc. 259,918
Palmer & Dodge 204,412
=========================================================================================================
21
Boston Properties, Inc.
Second 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 June 30, 2001
======================================================================================================
Office/
Geographic Area Office (2) Technical Industrial Hotel Total
--------------- ---------- --------- ---------- ----- -----
Greater Boston 17.3% 0.9% 0.1% 5.1% 23.4%
Greater Washington 18.7% 2.3% 0.1% n/a 21.1%
Greater San Francisco 21.2% 0.2% 0.2% n/a 21.6%
Midtown Manhattan 21.3% n/a n/a n/a 21.3%
Princeton/East Brunswick, NJ 6.5% n/a n/a n/a 6.5%
Baltimore, MD 3.5% n/a n/a n/a 3.5%
Richmond, VA 2.6% n/a n/a n/a 2.6%
Bucks County, PA n/a n/a 0.1% n/a 0.1%
--------- --------- ------- ------ --------
Total 91.1% 3.4% 0.5% 5.1% 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.
Second Quarter 2001
OCCUPANCY ANALYSIS
Same Property Occupancy - By Location
================================================================================
Location 30-Jun-01 30-Jun-00
-------- --------- ---------
Greater Boston 96.9% 97.8%
Greater Washington 95.8% 98.1%
Midtown Manhattan 99.7% 100.0%
Baltimore, MD 99.8% 99.8%
Princeton/East Brunswick, NJ 97.4% 99.8%
Richmond, VA 99.6% 100.0%
Greater San Francisco 95.1% 99.1%
Bucks County, PA 100.0% 100.0%
--------- ---------
Total Portfolio 97.6% 98.7%
======== ========
================================================================================
Same Property - By Type of Property
================================================================================
30-Jun-01 30-Jun-00
--------- ---------
Total Office Portfolio 97.8% 99.4%
Total Office/Technical Portfolio 98.7% 91.2%
Total Industrial Portfolio 87.3% 97.2%
-------- ----------
Total Portfolio 97.6% 98.7%
======= =========
================================================================================
23
Boston Properties, Inc.
Second 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 Expiring
---------- ---------------- --------------- -------------------- --------------------
2001 622,254 $ 22,669,313 $ 22,712,184 2.45%
2002 1,424,810 63,021,246 63,829,902 5.62%
2003 1,809,641 64,765,698 66,447,617 7.14%
2004 2,691,490 102,153,938 104,648,581 10.62%
2005 2,481,923 87,253,770 92,221,589 9.79%
2006 3,619,539 137,219,165 147,185,469 14.28%
2007 1,554,890 61,772,019 62,748,426 6.13%
2008 1,235,345 46,285,000 48,102,233 4.87%
2009 2,154,718 74,318,901 84,682,771 8.50%
2010 1,237,373 53,327,136 63,517,716 4.88%
Thereafter 6,520,175 235,595,107 286,677,877 25.72%
==============================================================================================================================
Occupancy By Location
==============================================================================================================================
30-Jun-01 30-Jun-00
--------- ---------
Greater Boston 94.3% 99.2%
Greater Washington 98.0% 99.2%
Midtown Manhattan 99.8% 100.0%
Baltimore, MD 99.8% 99.8%
Richmond, VA 99.6% 100.0%
Princeton/East Brunswick, NJ 96.6% 99.8%
Greater San Francisco 96.0% 99.0%
Bucks County, PA n/a n/a
------------- -------------
Total Office Portfolio 97.1% 99.4%
============= =============
==============================================================================================================================
24
Boston Properties, Inc.
Second 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 Expiring
---------- ---------------- --------------- -------------------- --------------------
2001 162,486 $ 2,120,134 $ 2,158,570 9.01%
2002 312,617 4,509,001 4,554,017 17.33%
2003 141,962 2,017,373 2,111,756 7.87%
2004 86,359 1,314,711 1,411,873 4.79%
2005 162,809 2,095,914 2,298,621 9.03%
2006 266,502 3,350,728 3,525,255 14.78%
2007 157,895 3,009,849 3,253,769 8.75%
2008 - - - -
2009 - - - -
2010 79,971 1,132,026 1,132,026 4.43%
Thereafter 433,059 7,391,528 8,548,314 24.01%
==================================================================================================================================
Occupancy By Location
==================================================================================================================================
30-Jun-01 30-Jun-00
--------- ---------
Greater Boston 100.0% 85.3%
Greater Washington 98.0% 93.9%
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 97.0% 99.2%
Bucks County, PA n/a n/a
--------------- ---------------
Total Office/Technical Portfolio 98.5% 92.0%
=============== ===============
==================================================================================================================================
25
Boston Properties, Inc.
Second 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 Expiring
---------- --------------- --------------- -------------------- --------------------
2001 - $ - $ - -
2002 184,904 931,346 931,346 34.68%
2003 128,105 865,990 930,042 24.02%
2004 200,213 1,219,793 1,287,044 37.55%
2005 - - - -
2006 - - - -
2007 20,000 185,244 215,955 3.75%
2008 - - - -
2009 - - - -
2010 - - - -
Thereafter - - - -
===================================================================================================================================
Occupancy By Location
===================================================================================================================================
30-Jun-01 30-Jun-00
--------- ---------
Greater Boston 89.8% 93.0%
Greater Washington n/a 69.3%
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% 90.3%
==================== ==================
===================================================================================================================================
26
Boston Properties, Inc.
Second 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 Expiring
---------- ---------------- --------------- -------------------- --------------------
2001 784,740 $ 24,789,447 $ 24,870,754 2.83%
2002 1,922,331 68,461,593 69,315,265 6.94%
2003 2,079,708 67,649,061 69,489,415 7.51%
2004 2,978,062 104,688,442 107,347,498 10.76%
2005 2,644,732 89,349,684 94,520,210 9.55%
2006 3,886,041 140,569,893 150,710,724 14.03%
2007 1,732,785 64,967,112 66,218,150 6.26%
2008 1,235,345 46,285,000 48,102,233 4.46%
2009 2,154,718 74,318,901 84,682,771 7.78%
2010 1,317,344 54,459,162 64,649,742 4.76%
Thereafter 6,953,234 242,986,635 295,226,191 25.11%
===================================================================================================================================
Occupancy By Location
===================================================================================================================================
30-Jun-01 30-Jun-00
--------- ---------
Greater Boston 94.6% 97.8%
Greater Washington 98.0% 97.2%
Midtown Manhattan 99.8% 100.0%
Baltimore, MD 99.8% 99.8%
Richmond, VA 99.6% 100.0%
Princeton/East Brunswick, NJ 96.6% 99.8%
Greater San Francisco 95.0% 99.1%
Bucks County, PA 100.0% 100.0%
------------ ------------
Total Portfolio 97.0% 98.5%
============ ============
===================================================================================================================================
Boston Properties, Inc.
Second Quarter 2001
IN-SERVICE GREATER BOSTON PROPERTIES
Lease Expirations
Greater Boston
=================================================================================================
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 213,405 $ 8,150,636 $ 8,191,616
2002 313,565 13,852,284 14,430,034
2003 540,991 19,405,370 20,719,510
2004 727,565 28,955,731 30,276,983
2005 942,203 35,224,516 36,888,116
2006 616,731 20,745,619 22,383,079
2007 331,662 11,962,716 13,584,566
2008 74,620 1,895,313 2,812,157
2009 910,738 29,913,843 35,343,065
2010 184,081 6,349,388 7,913,591
Thereafter 981,075 23,726,795 27,839,860
=================================================================================================
=================================================================================================
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 94,140 896,944 904,444
2003 50,704 616,571 616,571
2004 - - -
2005 - - -
2006 203,000 2,513,955 2,626,455
2007 50,000 682,105 882,105
2008 - - -
2009 - - -
2010 - - -
Thereafter 147,387 2,764,049 3,274,464
================================================================================================
================================================================================================
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 128,105 865,990 930,042
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
2010 - - -
Thereafter - - -
============================================================================================
28
Boston Properties, Inc.
Second 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 Revenues Under Expiring Leases
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases with future step-ups
---------- --------------- --------------- -------------------- -------------- --------------- --------------------
2001 46,362 $ 1,512,618 $ 1,514,509 133,989 $ 1,741,194 $ 1,779,630
2002 231,991 6,594,462 6,740,043 175,991 3,057,150 3,087,408
2003 150,306 3,908,462 4,117,731 54,894 832,518 901,098
2004 509,741 16,902,791 17,518,075 83,159 1,236,235 1,328,597
2005 483,599 16,251,473 17,741,476 131,290 1,645,237 1,802,844
2006 936,367 36,245,184 39,537,739 61,502 801,497 859,684
2007 542,102 19,495,491 16,714,303 107,895 2,327,744 2,371,664
2008 403,116 16,112,988 12,833,176 - - -
2009 453,110 14,837,415 16,550,784 - - -
2010 459,706 16,818,713 20,370,501 79,971 1,132,026 1,132,026
Thereafter 2,150,934 67,363,202 78,546,686 285,672 4,627,479 5,273,850
====================================================================================================================================
======================================================================================
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 - - -
======================================================================================
29
Boston Properties, Inc.
Second 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
---------- ---------------- --------------- -------------------- ---------------- -------------- --------------------
2001 134,868 $ 5,057,356 $ 5,057,356 28,497 $ 378,940 $ 378,940
2002 318,037 12,248,063 12,273,686 42,486 554,907 562,165
2003 651,950 26,985,249 27,085,759 36,364 568,284 594,087
2004 732,278 32,664,681 32,909,181 3,200 78,476 83,276
2005 331,761 14,970,546 15,774,341 31,519 450,677 495,777
2006 941,349 42,745,725 45,372,723 2,000 35,276 39,116
2007 408,928 18,161,888 19,453,059 - - -
2008 166,574 6,747,945 7,113,369 - - -
2009 267,149 11,015,469 11,705,617 - - -
2010 169,801 9,964,578 13,245,700 - - -
Thereafter 178,559 6,692,559 15,529,096 - - -
====================================================================================================================================
==================================================================================
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 1,219,793 1,287,044
2005 - - -
2006 - - -
2007 20,000 185,244 215,955
2008 - - -
2009 - - -
2010 - - -
Thereafter - - -
==================================================================================
30
Boston Properties, Inc.
Second Quarter 2001
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
Lease Expirations
Midtown Manhattan
==============================================================================================
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 60,526 $ 3,319,251 $ 3,319,251
2002 348,534 25,320,613 25,364,083
2003 176,188 7,320,323 7,346,243
2004 176,940 9,401,490 9,507,502
2005 85,108 4,306,753 4,495,509
2006 293,819 15,230,864 15,617,777
2007 144,381 7,898,467 8,442,175
2008 381,790 17,869,768 20,833,686
2009 221,675 11,230,981 12,308,596
2010 263,073 15,409,837 16,769,518
Thereafter 2,326,189 114,434,387 138,100,702
==============================================================================================
===================================================================================
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 - - -
2003 - - -
2004 - - -
2005 - - -
2006 - - -
2007 - - -
2008 - - -
2009 - - -
2010 - - -
Thereafter - - -
===================================================================================
31
Boston Properties Inc.
Second Quarter 2001
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
Lease Expirations
Princeton/East Brunswick
===============================================================================================================================
OFFICE OFFICE/TECHNICAL
--------------------------------------------------------------------- -------------------------------------
Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases
---------- ---------------- --------------- -------------------- ----------------- ----------------
2001 126,868 $ 3,823,584 $ 3,823,584 - $ -
2002 23,591 698,897 698,897 - -
2003 120,920 3,348,614 3,328,054 - -
2004 400,103 11,483,064 11,545,320 - -
2005 240,709 6,871,329 7,076,713 - -
2006 80,213 2,466,191 2,616,837 - -
2007 69,860 2,101,212 2,347,469 - -
2008 - - - - -
2009 170,255 5,003,167 5,794,553 - -
2010 146,050 4,616,406 5,045,811 - -
Thereafter 873,940 23,175,779 26,381,487 - -
===================================================================================================================================
OFFICE/TECHNICAL INDUSTRIAL
----------------------- -----------------------------------------------------------------------
Annualized Annualized
Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration with future step-ups Expiring Leases Expiring Leases with future step-ups
---------- ----------------------- --------------- --------------- --------------------
2001 $ - - $ - $ -
2002 - - - -
2003 - - - -
2004 - - - -
2005 - - - -
2006 - - - -
2007 - - - -
2008 - - - -
2009 - - - -
2010 - - - -
Thereafter - - - -
======================================================================================================================
32
Boston Properties, Inc.
Second Quarter 2001
IN-SERVICE OTHER PROPERTIES
Lease Expirations
Other Properties (Richmond, VA, Baltimore, MD, Bucks County, PA)
===================================================================================================================================
OFFICE OFFICE/TECHNICAL
----------------------------------------------------------------------- -----------------------------------
Annualized
Rentable Square Current Annualized Revenues Under Rentable Square Current Annualized
Year of Lease Footage Subject to Revenues Under Expiring Leases Footage Subject to Revenues Under
Expiration Expiring Leases Expiring Leases with future step-ups Expiring Leases Expiring Leases
---------- ---------------- --------------- -------------------- ----------------- ---------------
2001 40,225 $ 805,868 $ 805,868 - $ -
2002 189,092 4,306,927 4,323,159 - -
2003 169,286 3,797,680 3,850,320 - -
2004 144,863 2,746,181 2,891,520 - -
2005 398,443 9,629,153 10,245,434 - -
2006 751,060 19,785,582 21,657,314 - -
2007 57,957 2,152,245 2,206,854 - -
2008 209,245 3,658,986 4,509,845 - -
2009 131,791 2,318,026 2,980,156 - -
2010 14,662 168,214 172,595 - -
Thereafter 9,478 202,385 280,046 - -
===================================================================================================================================
OFFICE/TECHNICAL INDUSTRIAL
---------------------- --------------------------------------------------------------
Annualized Annualized
Revenues Under Rentable Square Current Annualized Revenues Under
Year of Lease Expiring Leases Footage Subject to Revenues Under Expiring Leases
Expiration with future step-ups 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 - - - -
===========================================================================================================
33
Boston Properties, Inc.
Second Quarter 2001
HOTEL PERFORMANCE
SAME PROPERTY HOTELS
Long Wharf Marriott - Boston
====================================================================================================================================
Second Quarter Second Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
---- ---- ------ ---- ---- ------
Occupancy 83.3% (1) 93.4% -10.8% 77.1% (1) 90.1% -14.4%
Average Daily Rate $ 257.04 $ 262.62 -2.1% $ 238.83 $ 232.84 2.6%
REVPAR $ 214.11 $ 245.29 -12.7% $ 184.14 $ 209.79 -12.2%
====================================================================================================================================
Cambridge Center Marriott
====================================================================================================================================
Second Quarter Second Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
---- ---- ------ ---- ---- ------
Occupancy 84.3% 90.0% -6.3% 80.8% 85.7% -5.7%
Average Daily Rate $ 212.08 $ 215.29 -1.5% $ 198.83 $ 195.57 2.1%
REVPAR $ 178.78 $ 193.76 -7.7% $ 160.65 $ 167.60 -3.7%
====================================================================================================================================
Residence Inn by Marriott
====================================================================================================================================
Second Quarter Second Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
---- ---- ------ ---- ---- ------
Occupancy 88.3% 92.4% -4.4% 87.5% 90.5% -3.3%
Average Daily Rate $ 174.42 $ 183.81 -5.1% $ 162.60 $ 164.29 -1.0%
REVPAR $ 154.01 $ 169.84 -9.3% $ 142.28 $ 148.68 -4.3%
====================================================================================================================================
Total Same Property Hotel Performance
====================================================================================================================================
Second Quarter Second Quarter Percent YTD YTD Percent
2001 2000 Change 2001 2000 Change
---- ---- ------ ---- ---- ------
Occupancy 84.8% 91.8% -7.6% 80.8% 88.4% -8.6%
Average Daily Rate $ 221.33 $ 226.74 -2.4% $ 206.85 $ 203.23 -1.8%
REVPAR $ 187.06 $ 208.40 -10.2% $ 166.05 $ 179.73 -7.6%
====================================================================================================================================
(1) Rooms renovation project underway.
34
Boston Properties, Inc.
Second Quarter 2001
SAME PROPERTY PERFORMANCE
Office, Office/Technical, Industrial and Hotel Properties
====================================================================================================================================
Office Office/Technical Industrial Hotel Total
------ ---------------- ---------- ----- -----
Number of Properties 82 30 5 3 120
Square feet 22,580,791 1,829,986 610,486 937,874 25,959,137
Percent of in-service properties 87.2% 100.0% 100.0% 100.0% 91.2%
Occupancy @ 6/30/00 99.4% 91.2% 97.2% - 98.7%
Occupancy @ 6/30/01 97.8% 98.7% 87.3% - 97.6%
Percent change from 2nd quarter 2001
over 2nd quarter 2000
Revenue 9.4% 18.1% -1.9% -9.4% 8.7%
Expense 8.9% 17.3% 29.9% 11.0% 9.2%
Net Operating Income 9.7% 18.4% -9.1% -12.1% 8.4%
====================================================================================================================================
Same Property Lease Analysis - June 30, 2001
====================================================================================================================================
Office Office/Technical Industrial Total
------ ---------------- ---------- -----
Vacant space available @ 04/01/01 (sf) 294,726 26,699 77,264 398,689
Square footage of leases expiring or
terminated 04/01/01-06/30/01 718,249 11,533 - 729,782
---------- --------- -------- ----------
Total space for lease (sf) 1,012,975 38,232 77,264 1,128,471
========== ========= ======== ==========
New tenants (sf) 364,465 - - 364,465
Renewals (sf) 133,291 10,696 - 143,987
---------- --------- -------- ----------
Total space leased (sf) 497,756 10,696 - 508,452
========== ========= ======== ==========
Space available @ 6/30/01 (sf) 515,219 27,536 77,264 620,019
========== ========= ======== ==========
Net increase (decrease) in leased space (sf) (220,493) (837) - (221,330)
Average lease term (months) 84 12 - 82
2nd generation TI/Comm PSF $ 12.06 $ 3.34 $ - $ 11.88
Increase in 2nd generation net rents (1) 72.9% 48.0% - 72.7%
====================================================================================================================================
(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.)
35
Boston Properties, Inc.
Second Quarter 2001
All "In-Service" Properties - quarter ended June 30, 2001
=====================================================================================================================
Office Office/Technical Industrial Total
------ ---------------- ---------- -----
Vacant space available @ 04/01/01 (sf) 408,881 26,699 77,264 512,844
Square footage of leases expiring or
terminated 04/01/01-06/30/01 859,333 11,533 - 870,866
----------- --------- ---------- ----------
Total space for lease (sf) 1,268,214 38,232 77,264 1,383,710
========== ========= ========== ==========
New tenants (sf) 364,465 - - 364,465
Renewals (sf) 133,291 10,696 - 143,987
---------- --------- ---------- ----------
Total space leased (sf) 497,756 10,696 - 508,452
========== ========= ========== ==========
Space available @ 06/30/01 (sf) 770,458 27,536 77,264 875,258
========== ========= ========== ==========
Net increase/(decrease) in leased space (sf) (361,577) (837) - (362,414)
Average lease term (months) 84 12 - 82
2nd generation TI/Comm PSF $ 12.06 $ 3.34 $ - $ 11.88
Increase in 2nd generation net rents (1) 72.9% 48.0% - 72.7%
=====================================================================================================================
(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.
Second Quarter 2001
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
(in thousands)
Historical Capital Expenditures
=================================================================================================================================
1997 1998 1999 2000 Q1 2001 Q2 2001
---- ---- ---- ---- ------- -------
Recurring capital expenditures $ 1,125 $ 3,543 $ 11,611 $ 11,201 $ 2,738 $ 3,425
=========== ========= =========== =========== ========= ==========
Hotel improvements, equipment upgrades
and replacements $ 2,625 $ 3,872 $ 2,346 $ 5,697 $ 2,281 $ 4,069
=========== ========= =========== =========== ========= ==========
=================================================================================================================================
2nd Generation Tenant Improvements and Leasing Commissions
=================================================================================================================================
1997 1998 1999 2000 Q1 2001 Q2 2001
---- ---- ---- ---- ------- -------
Office
Square feet 1,016,427 648,291 2,115,281 2,913,599 563,662 497,756
----------- --------- ----------- ----------- --------- ----------
Tenant improvement and lease
commissions p.s.f. $ 10.83 $ 9.82 $ 10.60 $ 13.82 $ 14.72 $ 12.06
----------- --------- ----------- ----------- --------- ----------
Office/Technical
Square feet 169,878 113,428 167,231 694,536 34,287 10,696
----------- --------- ----------- ----------- --------- ----------
Tenant improvement and lease
commissions p.s.f. $ 2.22 $ 3.32 $ 1.94 $ 2.95 $ 3.19 $ 3.34
----------- --------- ----------- ----------- --------- ----------
Industrial
Square feet 258,795 320,608 163,962 209,125 - -
----------- --------- ----------- ----------- --------- ----------
Tenant improvement and lease
commissions p.s.f. $ 0.99 $ 1.13 $ 0.60 $ 1.38 $ - $ -
----------- --------- ----------- ----------- --------- ----------
Average tenant improvement and lease
commission p.s.f. $ 8.06 $ 6.57 $ 9.34 $ 11.16 $ 14.05 $ 11.88
=========== ========= =========== =========== ========= ==========
=================================================================================================================================
37
Boston Properties, Inc.
Second Quarter 2001
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
as of June 30, 2001
ACQUISITIONS
====================================================================================================================================
Anticipated
Initial Future Total Current
Property Date Acquired Square Feet Investment Investment Investment Occupancy
-------- ------------- ----------- ---------- ----------- ---------- ---------
Citigroup Center Apr-01 1,578,901 755,000,000 - 755,000,000 100%
----------- ------------- ----------- ------------- ---------
Total Value Creation Pipeline -
Acquisitions 1,578,901 $ 755,000,000 $ - $ 755,000,000 100%
=========== ============= =========== ============= =========
====================================================================================================================================
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
=========== ============= =========== =============
====================================================================================================================================
38
Boston Properties, Inc.
Second Quarter 2001
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
as of June 30, 2001
====================================================================================================================================
# of
Development Properties Initial Occupancy Stabilization Date Location Buildings
---------------------- ----------------- ------------------ -------- ---------
Orbital Sciences Phase II - Building 2 Q3 2001 Q3 2001 Dulles, VA 1
Quorum Office Park Q3 2001 Q4 2001 Chelmsford, MA 2
111 Huntington Avenue - Prudential Center Q3 2001 Q4 2002 Boston, MA 1
Broad Run Business Park- Building E Q4 2001 Q2 2002 Dulles, VA 1
One and Two Discovery Square (50% ownership) Q4 2001 Q4 2002 Reston, VA 2
ITT Educational Services Q4 2001 Q4 2001 Springfield, VA 1
5 Times Square Q1 2002 Q2 2002 New York, NY 1
Waltham Weston Corporate Center Q1 2002 Q1 2003 Waltham, MA 1
611 Gateway Boulevard Q2 2002 Q3 2003 S. San Francisco, CA 1
Two Freedom Square (50% ownership) Q3 2002 Q1 2003 Reston, VA 1
Times Square Tower Q4 2003 Q2 2004 New York, NY 1
-----
Total Development Properties 13
=====
====================================================================================================================================
====================================================================================================================================
Anticipated Current
Investment Total Percentage
Development Properties Square feet to Date Investment Leased
---------------------- ----------- ------- ---------- ------
Orbital Sciences Phase II - Building 2 160,502 25,616,836 27,618,000 100%
Quorum Office Park 259,918 30,815,647 41,747,000 100%
111 Huntington Avenue - Prudential Center 919,229 215,806,587 290,000,000 92%
Broad Run Business Park- Building E 124,650 10,790,206 19,946,000 0%
One and Two Discovery Square (50% ownership) 362,868 19,609,225 42,587,000 (1) 49%
ITT Educational Services 32,114 1,105,464 5,740,000 100%
5 Times Square 1,099,154 352,085,712 536,115,000 100%
Waltham Weston Corporate Center 295,000 38,326,597 95,446,000 17%
611 Gateway Boulevard 249,732 22,510,881 77,523,240 0%
Two Freedom Square (50% ownership) 417,113 14,600,290 49,336,000 (1) 58%
Times Square Tower 1,221,058 203,103,411 653,500,000 51%
------------ ----------------- --------------- -----
Total Development Properties 5,141,338 $ 934,370,856 $ 1,839,558,240 68%
============ ================= =============== =====
====================================================================================================================================
DEVELOPMENTS PLACED-IN-SERVICE DURING 2001
====================================================================================================================================
Placed Stabilization # of
In Service Date Date Location Buildings Square feet
--------------- ---- -------- --------- -----------
Class A Office Building
-----------------------
302 Carnegie Center Q1 2001 Q1 2002 Princeton, NJ 1 64,565
New Dominion Tech Park - Building 1 Q1 2001 Q1 2001 Herndon, VA 1 235,201
Andover Office Park, Building 1 Q2 2001 Q2 2002 Andover, MA 1 120,000
2600 Tower Oaks Boulevard Q2 2001 Q2 2002 Rockville, MD 1 178,216
----- -------------
4 597,982
===== =============
====================================================================================================================================
====================================================================================================================================
Investment Total Percentage
to Date Investment Leased
------- ---------- ------
Class A Office Building
-----------------------
302 Carnegie Center $ 10,548,860 $ 13,435,000 71%
New Dominion Tech Park - Building 1 48,483,148 48,770,000 100%
Andover Office Park, Building 1 13,787,147 $ 17,381,000 76%
2600 Tower Oaks Boulevard 33,096,432 38,295,000 71%
------------- ------------- ----
$ 105,915,587 $ 117,881,000 83%
============ ============= ====
====================================================================================================================================
39
Boston Properties, Inc.
Second Quarter 2001
VALUE CREATION PIPELINE - OWNED LAND PARCELS
as of June 30, 2001
=========================================================================
No. of Developable
Location Parcels Acreage Square Feet
-------- ------- ------- -----------
Rockville, MD 5 96.5 1,006,000
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 4.7 720,000
Boston, MA 4 2.5 699,000
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
Springfield, VA 2 4.2 40,000
------- ------- -----------
31 308.9 6,858,799
======= ======= ===========
=========================================================================
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
as of June 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.
40
Boston Properties, Inc.
Second Quarter 2001
ACQUISITION PROPERTY PROFILE
PROPERTY NAME: Citigroup Center
PRODUCT TYPE: Class A office tower
LOCATION: New York, NY
DESCRIPTION: Class A Office Space
SIZE: 1,578,901 square feet
PURCHASE PRICE: $ 755,000,000
CLOSING DATE: April 25, 2001
FUTURE INVESTMENT: $ -
OCCUPANCY LEVEL: 100%
FUNDING SOURCE: Cash, New Mortgage Financing, Equity Investor
LARGEST TENANT: Citibank
COMPANY: SIZE: LEASE EXPIRATION:
Citibank, NA 639,971 4/30/2016 and 12/31/2004
O'Melveny & Myers LLP 121,576 5/31/06
A.T. Kearney 109,268 12/31/08
41