<Page>
Exhibit 99.1
[BOSTON PROPERTIES LOGO]
SUPPLEMENTAL OPERATING AND FINANCIAL DATA
FOR THE QUARTER ENDED MARCH 31, 2003
<Page>
BOSTON PROPERTIES, INC.
FIRST QUARTER 2003
<Table>
<Caption>
INDEX
- -------------------------------------------------------------------------------
PAGE
COMPANY BACKGROUND 3
INVESTOR INFORMATION 4-5
FINANCIAL HIGHLIGHTS 6
CONSOLIDATED BALANCE SHEETS 7
CONSOLIDATED INCOME STATEMENTS 8
FUNDS FROM OPERATIONS 9
FUNDS AVAILABLE FOR DISTIBUTION AND RATIOS 10
CAPITAL STRUCTURE 11
DEBT ANALYSIS 12-15
UNCONSOLIDATED JOINT VENTURES 16-17
PORTFOLIO OVERVIEW-SQUARE FOOTAGE 18
PROPERTY LISTING 19-22
TOP 20 TENANTS 23
PORTFOLIO OVERVIEW-FFO 24
OCCUPANCY ANALYSIS 25
OFFICE PROPERTIES-LEASE EXPIRATION ROLL OUT 26
OFFICE/TECHNICAL PROPERTIES-LEASE EXPIRATION ROLL OUT 27
INDUSTRIAL PROPERTIES-LEASE EXPIRATION ROLL OUT 28
RETAIL PROPERTIES - LEASE EXPIRATION ROLL OUT 29
GRAND TOTAL - OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND RETAIL
PROPERTIES 30
BOSTON AREA LEASE EXPIRATION ROLL OUT 31-32
WASHINGTON DC AREA LEASE EXPIRATION ROLL OUT 33-34
SAN FRANCISCO AREA LEASE EXPIRATION ROLL OUT 35-36
NEW YORK AREA LEASE EXPIRATION ROLL OUT 37-38
PRINCETON AREA LEASE EXPIRATION ROLL OUT 39-40
OTHER AREA LEASE EXPIRATION ROLL OUT 41-42
CBD/SUBURBAN LEASE EXPIRATION ROLL OUT 43-44
HOTEL PERFORMANCE 45
SAME PROPERTY PERFORMANCE 46
RECONCILIATION TO SAME PROPERTY PERFORMANCE 47
IN-SERVICE PROPERTY PERFORMANCE 48
CAPITAL EXPENDITURES 49
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS 50
VALUE CREATION PIPELINE - DEVELOPMENT 51
VALUE CREATION PIPELINE - LAND PARCELS 52
DEFINITIONS 53
</Table>
2
<Page>
BOSTON PROPERTIES, INC.
FIRST QUARTER 2003
COMPANY BACKGROUND
- -------------------------------------------------------------------------------
Boston Properties, Inc. (the "Company"), a self-administered and self-managed
real estate investment trust, is one of the largest owners, managers and
developers of first-class office properties in the United States, with a
significant presence in four core markets: Boston, Washington, D.C., Midtown
Manhattan and San Francisco. Boston Properties was founded in 1970 in Boston,
where it maintains its headquarters. The Company acquires, develops and manages
its properties through full-service regional offices in Boston, New York City,
Washington, D.C., San Francisco and Princeton, New Jersey. Its property
portfolio primarily comprises first-class office space and also includes hotels
and industrial buildings.
On March 18, 2003, Boston Properties Limited Partnership, the Company's
Operating Partnership ("BPLP") closed on an offering of $300 million in
aggregate principal amount of its 5.625% senior unsecured notes due 2015. The
notes were priced at 99.898% of their face amount to yield 5.636%. BPLP's bonds
have been rated Baa2, BBB and BBB by Moody's, Standard & Poor's and
FitchRatings, respectively.
Since the Company's initial offering in June 1997, the Company has acquired 51
properties adding approximately 20.1 million square feet to its portfolio,
representing an investment of approximately $5.8 billion, and the Company has
delivered 35 development properties adding approximately 7.2 million square feet
to its portfolio, representing an investment of approximately $1.6 billion. In
addition, the Company is constructing four office properties and one retail
property for a total anticipated investment of approximately $839.2 million. The
Company owns or controls land where it can develop an additional 8.8 million
square feet.
3
<Page>
BOSTON PROPERTIES, INC.
FIRST QUARTER 2003
INVESTOR INFORMATION
- -------------------------------------------------------------------------------
111 Huntington Avenue
Boston, MA 02199-7610
(617) 236-3300
(617) 236-3311 (fax)
KEY MANAGEMENT:
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
RESEARCH COVERAGE
- -------------------------------------------------------------------------------
EQUITY
- -------------------------------------------------------------------------------
A.G. Edwards & Sons, Inc. David AuBuchon (314) 955-5452
Banc of America Securities Int'l Lee Schalop (212) 847-5677
Bear Stearns Ross Smotrich (212) 272-8046
Credit Suisse First Boston Lawrence D. Raiman (212) 538-2380
Deutsche Bank Louis Taylor (212) 469-4912
Friedman, Billings & Ramsey David Loeb (703) 469-1289
Goldman Sachs David Kostin (212) 902-6781
Green Street Advisors Jim Sullivan (949) 640-8780
J.P. Morgan Anthony Paolone (212) 622-6682
Lehman Brothers Stuart Axelrod (212) 526-3410
McDonald Investments, Inc. Anatole Pevnev (216) 263-4783
Merrill Lynch Steve Sakwa (212) 449-0335
Morgan Stanley Greg Whyte (212) 761-6331
Prudential Securities James Sullivan (212) 778-2515
RBC Capital Markets Jay Leupp (415) 633-8588
Citigroup Smith Barney Jonathan Litt (212) 816-0231
The Penobscot Group Fred Carr (617) 649-9600
UBS Warburg Keith Mills (212) 713-3098
DEBT
- -------------------------------------------------------------------------------
RATING AGENCIES:
Fitch Ratings William Travers (212) 908-0304
Moody's Investor Services Lisa Bates Moss (212) 553-4705
Standard & Poors James Fielding (212) 438-2452
ANALYSTS:
Banc of America Securities Chris Brown (704) 386-2524
Bear Stearns Susan Berliner (212) 272-0217
BNP Paribas Erich Marriott (212) 841-3186
Credit Suisse First Boston Thierry Perrein (212) 538-8618
Deutsche Bank Scott O'Shea (212) 469-7190
J.P. Morgan Mark Streeter (212) 834-5086
Merrill Lynch John Forrey (212) 449-1812
Citigroup Smith Barney Thomas Cook (212) 723-1112
U.S. Bancorp Piper Jaffray Stephen Manaker (212) 284-9457
TIMING
- -------------------------------------------------------------------------------
Quarterly results for 2003 will be announced according to the following
anticipated schedule:
Second Quarter Late July
Third Quarter Late October
Fourth Quarter Late January
4
<Page>
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):
<Table>
<Caption>
1ST QUARTER 2003 4TH QUARTER 2002 3RD QUARTER 2002 2ND QUARTER 2002
---------------- ---------------- ---------------- ----------------
HIGH PRICE $ 39.2900 $ 37.4300 $ 39.8700 $ 41.5500
LOW PRICE $ 34.9900 $ 33.9300 $ 34.5600 $ 37.8800
CLOSING PRICE $ 37.9000 $ 36.8600 $ 37.2000 $ 39.9500
DIVIDENDS PER SHARE - ANNUALIZED (1) $ 2.44 $ 2.44 $ 2.44 $ 2.44
CLOSING DIVIDEND YIELD - ANNUALIZED 6.44% 6.62% 6.56% 6.11%
CLOSING SHARES, COMMON UNITS AND PREFERRED
UNITS (IF CONVERTED) OUTSTANDING (THOUSANDS) 125,597 125,038 125,031 125,017
CLOSING MARKET VALUE OF SHARES AND UNITS
OUTSTANDING (THOUSANDS) $ 4,760,126 $ 4,608,901 $ 4,651,153 $ 4,994,429
</Table>
(1) REFLECTS DIVIDEND INCREASE FROM $0.58 PER SHARE TO $0.61 PER SHARE
EFFECTIVE Q2 2002.
BPLP UNSECURED SENIOR NOTES
- -------------------------------------------------------------------------------
<Table>
<Caption>
SETTLEMENT DATE 12/13/2002 1/17/2003 3/18/2003
PRINCIPAL AMOUNT $750,000,000 $175,000,000 $300,000,000
YIELD 6.296% 6.280% 5.636%
COUPON 6.250% 6.250% 5.625%
DISCOUNT 99.650% 99.763% 99.898%
RATINGS:
MOODY'S Baa2 (stable) Baa2 (stable) Baa2 (stable)
S&P BBB (stable) BBB (stable) BBB (stable)
FITCH BBB (stable) BBB (stable) BBB (stable)
MATURITY DATE 1/15/2013 1/15/2013 4/15/2015
</Table>
5
<Page>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------
(UNAUDITED AND IN THOUSANDS, except per share data)
This section includes non-GAAP financial measures, which are accompanied by
what we consider the most directly comparable financial measures calculated and
presented in accordance with GAAP. Quantitative reconciliations of the
differences between the non-GAAP financial measures presented and the most
directly comparable GAAP financial measures are shown on pages 9 and 10. A
description of the non-GAAP financial measures we present and a statement of the
reasons why management believes the non-GAAP measures provide useful information
to investors about the company's financial condition or results of operations
can be found on page 53.
<Table>
<Caption>
THREE MONTHS ENDED
---------------------------------------------------
MARCH 31, 2003 DECEMBER 31, 2002
-------------- -----------------
INCOME ITEMS:
Revenue $ 319,680 (1) $ 333,597 (1)
Straight line rent (FASB 13) $ 10,866 $ 11,938
Lease termination fees (included in revenues) $ 1,761 $ 3,724
Capitalized interest $ 4,453 $ 4,719
Capitalized wages $ 1,172 $ 1,057
Operating Margins [(rental revenue - rental
expenses)/rental revenue] 68.3%(2) 69.0%(2)
Net income available to common shareholders $ 185,045 $ 260,146
Funds from operations (FFO) available to
common shareholders before net derivative
losses and after cash basis early surrender
lease income (3) $ 102,735 $ 113,464
FFO per share before net derivative losses and after
cash basis early surrender lease income - diluted (3) $ 1.03 $ 1.14
Net income available to common shareholders per share - basic $ 1.93 $ 2.73
Net income available to common shareholders per share -diluted $ 1.91 $ 2.70
Dividends per share $ 0.61 $ 0.61
Funds available for distribution (FAD) (4) $ 107,962 $ 112,377
RATIOS:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (5) 2.65 2.87
Interest Coverage Ratio (including capitalized interest) - cash basis (5) 2.50 2.69
FFO Payout Ratio (6) 59.22% 53.51%
FAD Payout Ratio (7) 65.77% 62.88%
<Caption>
MARCH 31, 2003 DECEMBER 31, 2002
-------------- -----------------
CAPITALIZATION:
Total Debt $ 4,980,113 $ 5,147,220
Price @ Quarter End $ 37.9000 $ 36.8600
Equity Value @ Quarter End $ 4,760,126 $ 4,608,901
Total Market Capitalization $ 9,740,239 $ 9,756,121
Debt/Total Market Capitalization (8) 51.13% 52.76%
</Table>
<Table>
<Caption>
THREE MONTHS ENDED
----------------------------------------------------
SEPTEMBER 30, 2002 JUNE 30, 2002
------------------ -------------
INCOME ITEMS:
Revenue $ 301,193 (1) $ 283,323
Straight line rent (FASB 13) $ 12,244 $ 12,216
Lease termination fees (included in revenues) $ 1,858 $ 1,227
Capitalized interest $ 4,684 $ 5,261
Capitalized wages $ 1,562 $ 1,185
Operating Margins [(rental revenue - rental
expenses)/rental revenue] 67.0%(2) 69.6%(2)
Net income available to common shareholders $ 71,541 $ 54,775
Funds from operations (FFO) available to
common shareholders before net derivative
losses and after cash basis early surrender
lease income (3) $ 98,980 $ 98,165
FFO per share before net derivative losses and after
cash basis early surrender lease income - diluted (3) $ 1.00 $ 1.02
Net income available to common shareholders per share - basic $ 0.75 $ 0.60
Net income available to common shareholders per share -diluted $ 0.74 $ 0.59
Dividends per share $ 0.61 $ 0.61
Funds available for distribution (FAD) (4) $ 95,901 $ 87,470
RATIOS:
Interest Coverage Ratio (excluding capitalized interest) - cash basis (5) 2.70 2.71
Interest Coverage Ratio (including capitalized interest) - cash basis (5) 2.52 2.51
FFO Payout Ratio (6) 61.00% 59.80%
FAD Payout Ratio (7) 73.44% 78.15%
<Caption>
SEPTEMBER 30, 2002 JUNE 30, 2002
------------------ -------------
CAPITALIZATION:
Total Debt $ 5,466,692 $ 4,415,724
Price @ Quarter End $ 37.2000 $ 39.9500
Equity Value @ Quarter End $ 4,651,153 $ 4,994,429
Total Market Capitalization $ 10,117,845 $ 9,410,153
Debt/Total Market Capitalization (8) 54.03% 46.93%
</Table>
(1) Includes gross revenues from hotels of $13,246, $24,779 and $20,007 for the
three months ended March 31, 2003, December 31, 2002 and September 30,
2002, respectively.
(2) Exclusive of the gross up of reimbursable electricity amounts totaling
$5,391, $6,476, $6,329 and $6,404 for the quarters ended March 31, 2003,
December 31, 2002, September 30, 2002 and June 30, 2002 and March 31, 2002,
respectively.
(3) For a quantitative reconciliation of the differences between FFO and Income
from operations before minority interests and income from unconsolidated
joint ventures as the most comparable GAAP financial measure, see page 9.
(4) For a quantitative reconciliation of the differences between funds
available for distribution and funds from operations before net
derivative losses and after cash basis early surrender lease income,
see page 10.
(5) For additional detail, see page 10.
(6) Gross dividend to common shareholders plus distributions to common
operating partnership holders divided by FFO per share before net
derivative losses and after cash basis early surrender lease income -
diluted
(7) Gross dividends to common shareholders plus distributions to common
Operating Partnership holders divided by funds available for distributions.
(8) For additional detail, see page 53.
6
<Page>
CONSOLIDATED BALANCE SHEETS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
MARCH 31, 2003 DECEMBER 31, 2002
---------------------- -----------------------
(unaudited)
ASSETS
Real estate $ 7,745,475 $ 7,781,684
Development in progress 418,798 448,576
Land held for future development 216,537 215,866
Real estate held for sale - 224,585
Less accumulated depreciation (846,002) (822,933)
---------------------- -----------------------
Total real estate 7,534,808 7,847,778
Cash and cash equivalents 384,418 55,275
Escrows 20,804 41,906
Tenant and other receivables, net 23,193 20,458
Accrued rental income, net 148,034 165,321
Deferred charges, net 165,559 176,545
Prepaid expenses and other assets 30,144 18,015
Investments in unconsolidated joint ventures 101,794 101,905
---------------------- -----------------------
TOTAL ASSETS $ 8,408,754 $ 8,427,203
====================== =======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $ 3,758,406 $ 4,267,119
Unsecured senior notes, net of discount 1,221,707 747,375
Unsecured bridge loan - 105,683
Unsecured line of credit - 27,043
Accounts payable and accrued expenses 63,319 73,846
Dividends and distributions payable 81,128 81,226
Interest rate contracts 13,663 14,514
Accrued interest payable 37,534 25,141
Other liabilities 63,992 81,085
---------------------- -----------------------
Total liabilities 5,239,749 5,423,032
---------------------- -----------------------
Commitments and contingencies - -
---------------------- -----------------------
Minority interests 860,182 844,581
---------------------- -----------------------
Series A Convertible Redeemable Preferred Stock, liquidation preference
$50.00 per share, 0 issued and outstanding at March 31, 2003,
December 31, 2002 and September 30, 2002 and 2,000,000
outstanding at June 30, 2002 - -
---------------------- -----------------------
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,
95,928,738, 95,362,990, 95,273,202 and 91,545,294
outstanding, respectively 959 954
Additional paid-in capital 2,010,764 1,982,689
Earnings in excess of dividends/(dividends in excess of earnings) 325,114 198,586
Treasury common stock, at cost (2,722) (2,722)
Unearned compensation (8,448) (2,899)
Accumulated other comprehensive loss (16,844) (17,018)
---------------------- -----------------------
Total stockholders' equity 2,308,823 2,159,590
---------------------- -----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,408,754 $ 8,427,203
====================== =======================
</Table>
<Table>
<Caption>
SEPTEMBER 30, 2002 JUNE 30, 2002
---------------------- ----------------------
(unaudited) (unaudited)
ASSETS
Real estate $ 8,139,450 $ 6,972,779
Development in progress 412,981 431,288
Land held for future development 213,769 203,518
Real estate held for sale - -
Less accumulated depreciation (836,418) (795,852)
---------------------- ----------------------
Total real estate 7,929,782 6,811,733
Cash and cash equivalents 28,793 81,640
Escrows 28,200 22,776
Tenant and other receivables, net 48,716 31,298
Accrued rental income, net 156,818 146,100
Deferred charges, net 148,435 148,239
Prepaid expenses and other assets 38,752 16,081
Investments in unconsolidated joint ventures 101,819 100,804
---------------------- ----------------------
TOTAL ASSETS $ 8,481,315 $ 7,358,671
====================== ======================
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $ 4,422,692 $ 4,415,724
Unsecured senior notes, net of discount - -
Unsecured bridge loan 1,000,000 -
Unsecured line of credit 44,000 -
Accounts payable and accrued expenses 69,097 52,655
Dividends and distributions payable 81,329 83,707
Interest rate contracts 15,115 11,568
Accrued interest payable 18,265 17,635
Other liabilities 70,292 65,142
---------------------- ----------------------
Total liabilities 5,720,790 4,646,431
---------------------- ----------------------
Commitments and contingencies - -
---------------------- ----------------------
Minority interests 804,229 825,730
---------------------- ----------------------
Series A Convertible Redeemable Preferred Stock, liquidation preference
$50.00 per share, 0 issued and outstanding at March 31, 2003,
December 31, 2002 and September 30, 2002 and 2,000,000
outstanding at June 30, 2002 - 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,
95,928,738, 95,362,990, 95,273,202 and 91,545,294
outstanding, respectively 953 915
Additional paid-in capital 1,977,560 1,821,762
Earnings in excess of dividends/(dividends in excess of earnings) (2,532) (16,152)
Treasury common stock, at cost (2,722) (2,722)
Unearned compensation (3,355) (3,598)
Accumulated other comprehensive loss (13,608) (13,695)
---------------------- ----------------------
Total stockholders' equity 1,956,296 1,786,510
---------------------- ----------------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 8,481,315 $ 7,358,671
====================== ======================
</Table>
7
<Page>
CONSOLIDATED INCOME STATEMENTS
------------------------------------------------------------------------------
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED
------------------------------------------------------
31-MAR-03 31-DEC-02 30-SEP-02 30-JUN-02
--------- --------- --------- ---------
Revenue:
Rental
Base Rent (1) (2) $ 247,353 $ 253,948 $ 229,453 $ 231,296
Recoveries from tenants 39,881 38,184 34,884 35,549
Parking and other 14,195 13,217 13,056 12,458
------------ ------------ ------------ ------------
Total rental revenue 301,429 305,349 277,393 279,303
Hotel revenues 13,246 24,779 20,007 -
Development and management services 4,590 2,769 2,571 1,710
Interest and other (3) 415 700 1,222 2,310
------------ ------------ ------------ ------------
Total revenue 319,680 333,597 301,193 283,323
------------ ------------ ------------ ------------
Expenses:
Operating (4) 61,188 59,328 61,553 55,539
Taxes 37,914 38,969 33,565 32,985
Hotel operating 11,171 17,562 13,524 -
General and administrative (5) 11,399 12,703 9,956 13,564
Interest (6) 73,645 71,337 65,476 64,366
Depreciation and amortization 49,824 52,188 43,933 42,336
Net derivative losses 932 1,461 5,284 4,826
Loss from early extinguishment of debt 1,474 - - -
Loss on investments in other companies - - - -
------------ ------------ ------------ ------------
Total expenses 247,547 253,548 233,291 213,616
------------ ------------ ------------ ------------
Income before minority interests and income
from unconsolidated joint ventures 72,133 80,049 67,902 69,707
Minority interest in property partnerships 397 162 720 712
Income from unconsolidated joint ventures 2,658 2,083 2,530 1,659
------------ ------------ ------------ ------------
Income before minority interest in Operating Partnership 75,188 82,294 71,152 72,078
Minority interest in Operating Partnership (7) (18,523) (19,920) (18,071) (18,867)
------------ ------------ ------------ ------------
Income before gain on sales, net of minority interest 56,665 62,374 53,081 53,211
Gain on sales of real estate, net 52,912 187,562 - -
------------ ------------ ------------ ------------
Income before gain on sales of land held for development 109,577 249,936 53,081 53,211
Gain on sales of land held for development, net - - 3,644 -
------------ ------------ ------------ ------------
Income before discontinued operations 109,577 249,936 56,725 53,211
Income from discontinued operations, net of minority interest 1,940 4,529 3,032 3,207
Gain on sales of real estate from discontinued operations,
net of minority interest 73,528 7,645 11,910 -
------------ ------------ ------------ ------------
Income before extraordinary items and preferred dividend 185,045 262,110 71,667 56,418
extraordinary items - (1,964) - -
------------ ------------ ------------ ------------
Income before preferred dividend 185,045 260,146 71,667 56,418
Preferred dividend - - (126) (1,643)
------------ ------------ ------------ ------------
Net income available to common shareholders $ 185,045 $ 260,146 $ 71,541 $ 54,775
============ ============ ============ ============
INCOME PER SHARE OF COMMON STOCK (EPS)
- -----------------------------------------------------------------------
Net income available to common shareholders per share - basic $ 1.93 $ 2.73 $ 0.75 $ 0.60
============ ============ ============ ============
Net income available to common shareholders per share - diluted $ 1.91 $ 2.70 $ 0.74 $ 0.59
============ ============ ============ ============
</Table>
(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 $10,866, $11,938, $12,244 and $12,216 for the three
months ended March 31, 2003, December 31, 2002, September 30, 2002 and June
30, 2002, respectively.
(2) Includes hotel lease payments of $8,023 for the three months ended June 30,
2002.
(3) Includes a refund of $1,300 related to prior years' tax matter for the
three months ended June 30, 2002.
(4) Includes hotel expenses of $1,844 for the three months ended June 30, 2002.
(5) Includes a $2.8 million write-off of leasing costs related to the
termination of the lease with Arthur Andersen for the three months ended
June 30, 2002.
(6) Interest expense is reported net of capitalized interest of $4,453, $4,719,
$4,684 and $5,261 for the three months ended March 31, 2003, December 31,
2002, September 30, 2002 and June 30, 2002 and March 31, 2002,
respectively.
(7) Equals minority interest percent of 17.62%, 17.69%, 17.76% and 18.37%,
respectively of income before minority interest in Operating Partnership
after deduction for preferred dividends and distributions for the three
months ended March 31, 2003, December 31, 2002, September 30, 2002 and June
30, 2002, respectively.
Certain prior period amounts have been reclassified to conform to current
period presentation.
8
<Page>
FUNDS FROM OPERATIONS
- ------------------------------------------------------------------------------
(IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS)
(UNAUDITED)
<Table>
<Caption>
THREE MONTHS ENDED
-------------------------------------
31-MAR-03 31-DEC-02
--------- ---------
Income before minority interests and income from
unconsolidated joint ventures $ 72,133 $ 80,049
Add:
Real estate depreciation and amortization (1) 51,791 56,072
Income from discontinued operations 2,355 5,503
Income from unconsolidated joint ventures 2,658 2,083
Loss from early extinguishment of debt associated with the sale
of 2300 N Street 1,474 -
Less:
Minority property partnership's share of funds from operations 866 1,390
Preferred dividends and distributions 5,771 5,926
--------------- ---------------
Funds from operations (FFO) 123,774 136,391
Add (subtract):
Net derivative losses 932 1,461
Early surrender lease payments received - contractual basis - -
--------------- ---------------
FFO before net derivative losses and after early surrender lease payments
received $ 124,706 $ 137,852
=============== ===============
FFO available to common shareholders before net derivative losses and
after early surrender lease payments received (2) $ 102,735 $ 113,464
=============== ===============
FFO per share before net derivative losses and after cash basis early
surrender lease income - basic $ 1.07 $ 1.19
=============== ===============
Weighted average shares outstanding - basic 95,733 95,313
=============== ===============
FFO per share before net derivative losses and after early
surrender lease payments received - diluted $ 1.03 $ 1.14
=============== ===============
FFO per share after net derivative losses and before early
surrender lease payments received - diluted $ 1.02 $ 1.13
=============== ===============
Weighted average shares outstanding - diluted 105,955 105,631
=============== ===============
</Table>
<Table>
<Caption>
THREE MONTHS ENDED
---------------------------------
30-SEP-02 30-JUN-02
--------- ---------
Income before minority interests and income from
unconsolidated joint ventures $ 67,902 $ 69,707
Add:
Real estate depreciation and amortization (1) 46,971 45,032
Income from discontinued operations 3,687 3,929
Income from unconsolidated joint ventures 2,530 1,659
Loss from early extinguishment of debt associated with the sale
of 2300 N Street - -
Less:
Minority property partnership's share of funds from operations 521 593
Preferred dividends and distributions 6,162 8,223
--------------- ---------------
Funds from operations (FFO) 114,407 111,511
Add (subtract):
Net derivative losses 5,284 4,826
Early surrender lease payments received - contractual basis 667 3,926
--------------- ---------------
FFO before net derivative losses and after early surrender lease payments
received $ 120,358 $ 120,263
=============== ===============
FFO available to common shareholders before net derivative losses and
after early surrender lease payments received (2) $ 98,980 $ 98,165
=============== ===============
FFO per share before net derivative losses and after cash basis early
surrender lease income - basic $ 1.04 $ 1.07
=============== ===============
Weighted average shares outstanding - basic 94,904 91,357
=============== ===============
FFO per share before net derivative losses and after early
surrender lease payments received - diluted $ 1.00 $ 1.02
=============== ===============
FFO per share after net derivative losses and before early
surrender lease payments received - diluted $ 0.95 $ 0.95
=============== ===============
Weighted average shares outstanding - diluted 105,725 105,982
=============== ===============
</Table>
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
- -------------------------------------------------------------------------------
(in thousands, except per share amounts)
(unaudited)
<Table>
<Caption>
MARCH 31, 2003 DECEMBER 31, 2002
----------------------------------- -----------------------------
INCOME SHARES INCOME SHARES
(NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR)
----------- ------------- ----------- -------------
Basic FFO before net derivative losses and
after early surrender
lease income $ 124,706 116,207 $ 137,852 115,800
Effect of Dilutive Securities
Convertible Preferred Units 5,771 9,199 5,926 9,236
Convertible Preferred Stock - - - -
Stock Options and other - 1,022 - 1,082
----------------- --------------- ------------ -------------
Diluted FFO before net derivative losses
and after early surrender lease payments
received $ 130,477 126,428 $ 143,778 126,118
================= =============== ============ =============
Company's share of diluted FFO before net
derivative losses and after early surrender
lease payments received (3) $ 109,348 105,955 $ 120,422 105,631
================= =============== ============ =============
FFO per share before net derivative losses
and after early surrender lease payments
received - basic $ 1.07 $ 1.19
================= ============
FFO per share before net derivative losses
and after early surrender lease payments
received - diluted $ 1.03 $ 1.14
================= ============
</Table>
<Table>
<Caption>
SEPTEMBER 30, 2002 JUNE 30, 2002
---------------------------------- ----------------------------------
INCOME SHARES INCOME SHARES
(NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR)
----------- ------------- ----------- -------------
Basic FFO before net derivative losses and
after early surrender
lease income $ 120,358 115,402 $ 120,263 111,923
Effect of Dilutive Securities
Convertible Preferred Units 6,036 9,344 6,580 10,342
Convertible Preferred Stock 126 200 1,643 2,625
Stock Options and other - 1,276 - 1,659
--------------- --------------- ---------------- ---------------
Diluted FFO before net derivative losses
and after early surrender lease payments
received $ 126,520 126,222 $ 128,486 126,549
=============== =============== ================ ===============
Company's share of diluted FFO before net
derivative losses and after early surrender
lease payments received (3) $ 105,974 105,725 $ 107,605 105,982
=============== =============== ================ ===============
FFO per share before net derivative losses
and after early surrender lease payments
received - basic $ 1.04 $ 1.07
=============== ================
FFO per share before net derivative losses
and after early surrender lease payments
received - diluted $ 1.00 $ 1.02
=============== ================
</Table>
(1) Real estate depreciation includes the Company's share of joint venture real
estate depreciation of $2,514, $2,848, $2,170 and $1,947 less corporate
related depreciation of $674, $733, $733 and $711 for the three months
ended March 31, 2003, December 31, 2002, September 30, 2002 and June 30,
2002, respectively.
(2) Based on weighted average shares for the quarter. Company's share for the
quarter ended March 31, 2003, December 31, 2002, September 30, 2002 and
June 30, 2002 was 82.38%, 82.31%, 82.24% and 81.63%, respectively.
(3) Based on weighted average diluted shares for the quarter. Company's share
for the quarter ended March 31, 2003, December 31, 2002, September 30, 2002
and June 30, 2002 was 83.81%, 83.76%, 83.76% and 83.75%, respectively.
9
<Page>
FUNDS AVAILABLE FOR DISTRIBUTION (FAD):
- -------------------------------------------------------------------------------
(in thousands)
<Table>
<Caption>
Three Months Ended
----------------------------------------------------
MARCH 31, 2003 DECEMBER 31, 2002
-------------- -----------------
Funds from operations (FFO) before net derivative
losses and after cash basis early surrender lease income (see page 9) $ 124,706 $ 137,852
Add: Non real estate depreciation 674 733
Less: Straight-line rent (10,866) (11,938)
Recurring capital expenditures (1,960) (5,909)
Hotel improvements, equipment upgrades and replacements (405) (188)
2nd generation tenant improvements and leasing commissions (4,187) (8,173)
---------------------- ----------------------
Funds available for distribution (FAD) $ 107,962 $ 112,377
====================== ======================
</Table>
<Table>
INTEREST COVERAGE RATIOS
- ---------------------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts)
THREE MONTHS ENDED
----------------------------------------------------
MARCH 31, 2003 DECEMBER 31, 2002
-------------- -----------------
EXCLUDING CAPITALIZED INTEREST
Income before minority interests and income from
unconsolidated joint ventures $ 72,133 $ 80,049
Add:
Discontinued operations 2,355 5,503
Interest expense 73,645 71,337
Depreciation 49,824 52,188
Net derivative losses 932 1,461
Prepayment penalty 1,474 -
Income from unconsolidated joint ventures 2,658 2,083
Discontinued Operations - depreciation 127 1,781
Discontinued Operations - interest expense 296 809
Less:
Straight line rent (10,866) (11,938)
---------------------- ----------------------
Subtotal 192,578 203,273
Divided by:
Interest expense (1) 72,352 69,901
Interest expense - discontinued operations 296 809
---------------------- ----------------------
Total interest expense 72,648 70,710
Interest Coverate Ratio 2.65 2.87
====================== ======================
INCLUDING CAPITALIZED INTEREST
Income before minority interests and
income from unconsolidated joint ventures $ 72,133 $ 80,049
Add:
Discontinued operations 2,355 5,503
Interest expense 73,645 71,337
Depreciation 49,824 52,188
Net derivative losses 932 1,461
Prepayment penantly 1,474 -
Income from unconsolidated joint ventures 2,658 2,083
Discontinued Operations - depreciation 127 1,781
Discontinued Operations - interest expense 296 809
Less:
Straight line rent (10,866) (11,938)
---------------------- ----------------------
Subtotal 192,578 203,273
Divided by:
Interest expense (1) (2) 76,805 74,763
Interest expense - discontinued operations 296 809
---------------------- ----------------------
Total interest expense 77,101 75,572
Interest Coverate Ratio 2.50 2.69
====================== ======================
</Table>
<Table>
<Caption>
FUNDS AVAILABLE FOR DISTRIBUTION (FAD):
- ------------------------------------------------------------------------------------------------------------------------------
(in thousands)
Three Months Ended
------------------------------------------------
SEPTEMBER 30, 2002 JUNE 30, 2002
------------------ -------------
Funds from operations (FFO) before net derivative
losses and after cash basis early surrender lease income(see page 9) $120,358 $120,263
Add: Non real estate depreciation 733 711
Less: Straight-line rent (12,244) (12,216)
Recurring capital expenditures (4,266) (3,553)
Hotel improvements, equipment upgrades and replacements (394) (852)
2nd generation tenant improvements and leasing commissions (8,286) (16,883)
---------------------- ---------------------
Funds available for distribution (FAD) $ 95,901 $ 87,470
====================== =====================
</Table>
<Table>
<Caption>
INTEREST COVERAGE RATIOS
- -----------------------------------------------------------------------------------------------------------------------------
(in thousands, except per share amounts)
Three Months Ended
------------------------------------------------
SEPTEMBER 30, 2002 JUNE 30, 2002
------------------ -------------
EXCLUDING CAPITALIZED INTEREST
Income before minority interests and income from
unconsolidated joint ventures $ 67,902 $ 69,707
Add:
Discontinued operations 3,687 3,929
Interest expense 65,476 64,366
Depreciation 43,933 42,336
Net derivative losses 5,284 4,826
Prepayment penalty - -
Income from unconsolidated joint ventures 2,530 1,659
Discontinued Operations - depreciation 1,601 1,466
Discontinued Operations - interest expense 2,949 2,961
Less:
Straight line rent (12,244) (12,216)
---------------------- ---------------------
Subtotal 181,118 179,034
Divided by:
Interest expense (1) 64,202 63,020
Interest expense - discontinued operations 2,949 2,961
---------------------- ---------------------
Total interest expense 67,151 65,981
Interest Coverate Ratio 2.70 2.71
====================== =====================
INCLUDING CAPITALIZED INTEREST
Income before minority interests and
income from unconsolidated joint ventures $ 67,902 $ 69,707
Add:
Discontinued operations 3,687 3,929
Interest expense 65,476 64,366
Depreciation 43,933 42,336
Net derivative losses 5,284 4,826
Prepayment penantly - -
Income from unconsolidated joint ventures 2,530 1,659
Discontinued Operations - depreciation 1,601 1,466
Discontinued Operations - interest expense 2,949 2,961
Less:
Straight line rent (12,244) (12,216)
---------------------- ---------------------
Subtotal 181,118 179,034
Divided by:
Interest expense (1) (2) 68,867 68,334
Interest expense - discontinued operations 2,949 2,961
---------------------- ---------------------
Total interest expense 71,816 71,295
Interest Coverate Ratio 2.52 2.51
====================== =====================
</Table>
(1) Excludes amortization of financing costs were $1,293, $1,436,
$1,274 and $1,346 for the quarters ended March 31, 2003,
December 31, 2002, September 30, 2002 and June 30, 2000,
respectively.
(2) Includes capitalized interest of $4,453, $4,719, $4,684 and
$5,261 for the quarters ended March 31, 2003, December 31,
2002, September 31, 2002 and June 30, 2002, respectively.
10
<Page>
CAPITAL STRUCTURE
- -------------------------------------------------------------------------------
DEBT
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
AGGREGATE PRINCIPAL
MARCH 31, 2003
----------------------
Mortgage Notes Payable $ 3,758,406
Unsecured Senior Notes, net of discount 1,221,707
Unsecured Line of Credit -
----------------------
Total Debt $ 4,980,113
======================
</Table>
EQUITY
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
COMMON
SHARES & UNITS STOCK
OUTSTANDING EQUIVALENTS EQUIVALENT (1)
-------------- ------------ ------------------
Common Stock 95,929 95,929 $ 3,635,709
Operating Partnership Units 20,471 20,471 775,851
Preferred Operating Partnership Units
Series One 2,373 2,110 79,969
Series Two 5,401 7,087 268,597
------------ ------------------
Total Equity 125,597 $ 4,760,126
============ ==================
Total Market Capitalization $ 9,740,239
==================
</Table>
(1) Value based on March 31, 2003 closing price of $37.90
11
<Page>
DEBT ANALYSIS
- -------------------------------------------------------------------------------
DEBT MATURITIES AND PRINCIPAL PAYMENTS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
2003 (1) 2004 2005 2006 2007 THEREAFTER TOTAL
-------- ---- ---- ---- ---- ---------- -----
Amount $ 56,183 $ 776,684 $ 289,158 $ 282,458 $182,632 $ 3,392,998 $ 4,980,113
Weighted Average Rate 5.44% 3.65% 6.88% 7.79% 6.59% 6.79% 6.33%
</Table>
(1) Consists of remaining portion of 2003.
UNSECURED DEBT
- -------------------------------------------------------------------------------
UNSECURED LINE OF CREDIT - MATURES JANUARY 17, 2006
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
OUTSTANDING LETTERS OF REMAINING
FACILITY @3/31/03 CREDIT CAPACITY
-------- ----------- ---------- ---------
$ 605,000 $ - $ 2,781 $ 602,219
</Table>
UNSECURED SENIOR NOTES, NET
- -------------------------------------------------------------------------------
(IN THOUSANDS)
OUTSTANDING
@3/31/03
-----------
$ 1,221,707
UNSECURED AND SECURED DEBT ANALYSIS
- -------------------------------------------------------------------------------
<Table>
<Caption>
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
------------- -------------- ----------------
Unsecured Debt 24.53% 6.13% 9.8 years
Secured Debt 75.47% 6.40% 5.0 years
------------- -------------- ----------------
Total Debt 100.00% 6.33% 6.3 years
============= ============== ================
</Table>
FLOATING AND FIXED RATE ANALYSIS
- ------------------------------------------------------------------------------
<Table>
<Caption>
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
------------- -------------- ----------------
Floating Rate Debt 13.95% 2.99% 0.5 years
Fixed Rate Debt 86.05% 6.88% 6.1 years
------------- -------------- ----------------
Total Debt 100.00% 6.33% 6.3 years
============= ============== ================
</Table>
12
<Page>
SENIOR UNSECURED DEBT COVENANT COMPLIANCE RATIOS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
In the fourth quarter of 2002 the company's operating partnership received
investment grade ratings on its senior unsecured debt securities and thereafter
issued unsecured notes. The notes were issued under an indenture, dated as of
December 13, 2002, by and between Boston Properties Limited Partnership and The
Bank of New York, as trustee, as supplemented, which, among other things,
requires us to comply with the following limitations on incurrence of debt:
Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized
Consolidated EBITDA to Annualized Interest Expense; and Maintenance of
Unencumbered Assets. Compliance with these restrictive covenants requires us to
apply specialized terms the meaning of which is described in detail in our
filings with the SEC, and to calculate ratios in the manner prescribed by the
indenture.
This section presents such ratios as of March 31, 2003 to show that
the company's operating partnership was in compliance with the terms of the
indenture as of such date. Management is not presenting these ratios and the
related calculations for any other purpose or for any other period, and is not
intending for these measures to otherwise provide information to investors about
the company's financial condition or results of operations. Investors should not
rely on these measures other than for purposes of testing our compliance with
the indenture.
<Table>
<Caption>
MARCH 31, 2003
----------------------
Total Assets:
Capitalized Property Value $ 10,146,562
Cash and Cash Equivalents 384,418
Undeveloped Land, at Cost 216,537
Development in Process, at Cost (including Joint Venture %) 475,716
----------------------
Total Assets $ 11,223,233
======================
----------------------
Unencumbered Assets $ 3,679,955
----------------------
Secured Debt (Fixed and Variable) (1) $ 3,752,942
Joint Venture Debt 240,739
Contingent Liabilities & Letters of Credit 21,617
Unsecured Debt (2) 1,225,000
----------------------
Total Outstanding Debt $ 5,240,298
======================
Consolidated EBITDA:
Income before minority interests and income from unconsolidated
joint ventures (per Consolidated Income Statement) $ 72,133
Add: Interest Expense (per Consolidated Income Statement) 73,645
Add: Depreciation and Amortization (per Consolidated Income Statement) 49,824
Add: Net derivative losses (SFAS No. 133 ) (per Consolidated Income Statement) 932
Add: Loss from early extinguishment of debt (per Consolidated Income Statement) 1,474
----------------------
EBITDA 198,008
Add: Company share of unconsolidated joint venture EBITDA 8,310
Less: EBITDA related to sold properties from continuing operations (2,090)
----------------------
Consolidated EBITDA $ 204,228
======================
Adjusted Interest Expense:
Interest Expense (per Consolidated Income Statement) $ 73,645
Add: Company share of unconsolidated joint venture interest expense 3,483
Less: amortization of financing costs (1,293)
Less: interest expense related to sold properties from continuing operations (959)
----------------------
Adjusted Interest Expense $ 74,876
======================
</Table>
<Table>
<Caption>
COVENANT RATIOS TEST ACTUAL
-----------------------------------------------
Total Outstanding Debt/Total Assets Less than 60% 46.7%
Secured Debt/Total Assets Less than 50% 35.6%
Interest Coverage (Annualized Consolidated EBITDA to
Annualized Interest Expense) Greater than 1.50x 2.73
Unencumbered Assets/ Unsecured Debt Greater than 150% 300.4%
----------------------
Unencumbered GAAP NOI $ 59,236
----------------------
----------------------
% of unencumbered NOI to Total NOI 29.0%
----------------------
----------------------
# of unencumbered properties 65
----------------------
</Table>
(1) Excludes Fair Value Adjustment of $5.5 million.
(2) Excludes Debt Discount of $3.3 million.
13
<Page>
DEBT MATURITIES AND PRINCIPAL PAYMENTS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
PROPERTY 2003 2004 2005 2006 2007 THEREAFTER TOTAL
- ----------------------------------- --------- ------------ --------- ------------ -------- ------------ ------------
Citigroup Center $ 4,360 $ 6,191 $ 6,651 $ 7,145 $ 7,676 $ 483,253 $ 515,276
5 Times Square - 376,726 (1) - - - - 376,726
Embarcadero Center One, Two
and Federal Reserve 3,401 4,809 5,141 5,496 5,877 278,913 303,637
Prudential Center 3,187 4,591 4,919 5,256 5,619 259,705 283,277
280 Park Avenue 2,120 3,022 3,261 3,519 3,798 248,794 264,514
Times Square Tower - 254,379 - - - - 254,379
599 Lexington Avenue - - 225,000 - - - 225,000
Embarcadero Center Four 2,473 3,544 3,797 4,061 4,346 129,711 147,932
Embarcadero Center Three 1,667 2,351 2,506 2,671 132,726 - 141,921
Riverfront Plaza 2,056 2,905 3,104 3,314 3,540 95,327 110,246
Democracy Center 1,383 1,961 2,103 2,257 2,421 93,728 103,853
Embarcadero Center West Tower 1,096 1,546 1,649 90,415 - - 94,706
601 and 651 Gateway Boulevard 626 899 977 1,062 1,155 83,566 88,285
100 East Pratt Street 1,385 1,964 2,100 2,246 2,401 78,105 88,201
Reservoir Place 2,163 3,061 3,279 60,065 - - 68,568
One & Two Reston Overlook 619 65,908 - - - - 66,527
202, 206 & 214 Carnegie Center 462 663 719 780 845 58,217 61,686
New Dominion Technology Park,
Building One 43 91 654 1,282 1,378 54,042 57,490
Capital Gallery 980 1,404 1,524 50,651 - - 54,559
504, 506 & 508 Carnegie Center 738 1,052 1,136 1,221 1,314 40,915 46,376
</Table>
(1) This loan was refinanced on April 14, 2003.
14
<Page>
BOSTON PROPERTIES, INC.
FIRST QUARTER 2003
DEBT MATURITIES AND PRINCIPAL PAYMENTS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
PROPERTY 2003 2004 2005 2006
- ----------------------------------------- ------------- ------------ ----------- ------------
10 & 20 Burlington Mall Rd & 91 Hartwell 432 688 741 795
10 Cambridge Center 378 607 659 715
2600 Tower Oaks Boulevard - 30,978 - -
1301 New York Avenue 922 1,315 1,417 1,531
Sumner Square 364 518 557 599
Eight Cambridge Center 369 557 601 649
510 Carnegie Center 408 588 635 683
Lockheed Martin Building 450 641 685 732
University Place 496 702 752 806
Reston Corporate Center 429 612 654 698
Shaws Supermarket 21,539 (1) - - -
NIMA Building 371 530 566 604
Bedford Business Park 480 690 751 818
191 Spring Street 276 443 482 18,773
New Dominion Technology Park, Bldg. 2 - - 11,329 -
101 Carnegie Center 263 375 406 6,622
Montvale Center 121 173 189 6,762
Hilltop Business Center 126 200 214 230
------------- ------------ ----------- ------------
56,183 776,684 289,158 282,458
------------- ------------ ----------- ------------
Unsecured Senior Notes - - - -
Unsecured Line of Credit - - - -
------------- ------------ ----------- ------------
$ 56,183 $ 776,684 $ 289,158 $282,458
============= ============ =========== ============
</Table>
<Table>
<Caption>
PROPERTY 2007 THEREAFTER TOTAL
- ----------------------------------------- ------------- -------------- --------------
10 & 20 Burlington Mall Rd & 91 Hartwell 855 35,589 39,100
10 Cambridge Center 777 31,436 34,572
2600 Tower Oaks Boulevard - - 30,978
1301 New York Avenue 1,651 23,409 30,245
Sumner Square 645 26,936 29,619
Eight Cambridge Center 702 24,486 27,364
510 Carnegie Center 735 23,519 26,568
Lockheed Martin Building 782 21,799 25,089
University Place 864 20,338 23,958
Reston Corporate Center 745 20,523 23,661
Shaws Supermarket - - 21,539
NIMA Building 644 17,785 20,500
Bedford Business Park 890 16,859 20,488
191 Spring Street - - 19,974
New Dominion Technology Park, Bldg. 2 - - 11,329
101 Carnegie Center - - 7,666
Montvale Center - - 7,245
Hilltop Business Center 246 4,336 5,352
------------- -------------- --------------
182,632 2,171,291 3,758,406
------------- -------------- --------------
Unsecured Senior Notes - 1,221,707 1,221,707
Unsecured Line of Credit - - -
------------- -------------- --------------
$ 182,632 $ 3,392,998 $ 4,980,113
============= ============== ==============
</Table>
(1) This loan was repaid on April 1, 2003.
15
<Page>
UNCONSOLIDATED JOINT VENTURES
- -------------------------------------------------------------------------------
MISCELLANEOUS BALANCE SHEET INFORMATION
- -------------------------------------------------------------------------------
(UNAUDITED AND IN THOUSANDS)
AS OF MARCH 31, 2003)
<Table>
<Caption>
ONE MARKET 140 265
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN
SQUARE NORTH SQUARE STREET STREET
------------ ------------- --------------- ------------- --------------
Total Equity (1) $ 347 $ 11,873 $ 31,849 $ 5,568 $ 22,548
============ ============= =============== ============= ==============
Mortgage/Construction loans payable (1) $ 18,891 $ 48,444 $ 69,656 $ 14,026 $ 18,897
============ ============= =============== ============= ==============
BXP's nominal ownership percentage 25.00% 50.00% 51.00% 25.00% 35.00%
============ ============= =============== ============= ==============
</Table>
<Table>
<Caption>
TWO 901
DISCOVERY FREEDOM NEW YORK
SQUARE (2) SQUARE (3) AVENUE (3) COMBINED
------------- ------------ ------------- ------------
Total Equity (1) $ 7,719 $ 8,208 $ 13,682 $101,794
============= ============ ============= ============
Mortgage/Construction loans payable (1) $ 32,351 $ 34,312 $ 4,162 $240,739
============= ============ ============= ============
BXP's nominal ownership percentage 50.00% 50.00% 25.00%
============= ============ =============
</Table>
RESULTS OF OPERATIONS
- -------------------------------------------------------------------------------
FOR THE THREE MONTHS ENDED MARCH 31, 2003
<Table>
<Caption>
ONE MARKET 140 265
FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN
SQUARE NORTH SQUARE STREET STREET
------------ ------------- --------------- ------------- --------------
REVENUE
Total revenue $ 3,492 $ 4,971 $ 6,293 $ 2,875 $ 3,545
------------ ------------- --------------- ------------- --------------
EXPENSES
Operating 1,034 1,228 2,144 530 1,197
------------ ------------- --------------- ------------- --------------
SUBTOTAL 2,458 3,743 4,149 2,345 2,348
Interest 1,471 1,889 2,838 1,059 330
Depreciation and amortization 746 1,297 985 357 693
------------ ------------- --------------- ------------- --------------
NET INCOME $ 241 $ 557 $ 326 $ 929 $ 1,325
============ ============= =============== ============= ==============
BXP's share of net income $ 60 $ 279 $ 166 $ 279 (5) $ 463
BXP's share of depreciation & amortization 433 648 503 141 243
------------ ------------- --------------- ------------- --------------
BXP's share of Funds from Operations (FFO) $ 493 (5) $ 927 $ 669 $ 420 (5) $ 706
============ ============= =============== ============= ==============
</Table>
<Table>
<Caption>
TWO 901
DISCOVERY FREEDOM NEW YORK
SQUARE (2) SQUARE (3) AVENUE (3) COMBINED
------------- ------------ ------------ ------------
REVENUE
Total revenue $ 3,144 $ 2,760 $ - $ 27,080 (4)
------------- ------------ ------------ ------------
EXPENSES
Operating 846 458 - 7,437
------------- ------------ ------------ ------------
SUBTOTAL 2,298 2,302 - 19,643
Interest 360 326 - 8,273
Depreciation and amortization 618 473 - 5,169
------------- ------------ ------------ ------------
NET INCOME $ 1,320 $ 1,503 $ - $ 6,201
============= ============ ============ ============
BXP's share of net income $ 660 $ 751 $ - $ 2,658
BXP's share of depreciation & amortization 309 237 - 2,514
------------- ------------ ------------ ------------
BXP's share of Funds from Operations (FFO) $ 969 $ 988 $ - $ 5,172
============= ============ ============ ============
</Table>
(1) Represents the Company's share.
(2) Boston Properties acquired its joint venture partner's interest and
repaid the mortgage indebtedness on April 1, 2003.
(3) Property is currently under development.
(4) The impact of the straight-line rent adjustment increased revenue by
$2,044 for the three months ended March 31, 2003.
(5) Reflects the changes in the allocation percentages pursuant to the
achievement of specified investment return thresholds as provided for in
the joint venture agreements.
16
<Page>
UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)
- -------------------------------------------------------------------------------
DEBT MATURITIES AND PRINCIPAL PAYMENTS
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
2003 2004 2005 2006 2007 THEREAFTER TOTAL
---- ---- ---- ---- ---- ---------- -----
Amount $ 52,650 $ 36,314 $ 6,326 $ 2,342 $ 2,534 $ 140,573 $ 240,739
Weighted Average Rate 2.93% 3.38% 4.65% 7.89% 7.90% 7.94% 6.07%
</Table>
FLOATING AND FIXED RATE DEBT ANALYSIS
- -------------------------------------------------------------------------------
<Table>
<Caption>
WEIGHTED WEIGHTED AVERAGE
% OF DEBT AVERAGE RATE MATURITY
--------- ------------ ----------------
Floating Rate Debt 37.27% 2.93% 1.0 years
Fixed Rate Debt 62.73% 7.93% 7.9 years
----------- ----------- ----------------
Total Debt 100.00% 6.07% 5.3 years
=========== =========== ================
</Table>
DEBT MATURITIES AND PRINCIPAL PAYMENTS BY PROPERTY
- -------------------------------------------------------------------------------
(IN THOUSANDS)
<Table>
<Caption>
PROPERTY 2003 2004 2005 2006 2007 THEREAFTER TOTAL
-------- ---- ---- ---- ---- ---- ---------- -----
Metropolitan Square (1) $ 533 $ 764 $ 830 $ 901 $ 978 $ 65,650 $ 69,656
Market Square North (2) 602 860 926 1,001 1,080 43,975 48,444
Two Freedom Square (2) - 34,312 - - - - 34,312
Discovery Square (2),(5) 32,351 - - - - - 32,351
One Freedom Square (3) 156 221 239 258 279 17,738 18,891
265 Franklin Street (4) 18,897 - - - - - 18,897
140 Kendrick Street (3) 111 157 169 182 197 13,210 14,026
901 New York Avenue (3) - - 4,162 - - - 4,162
------------ ----------- ------------ ----------- -------------- ---------------- -------------
$ 52,650 $ 36,314 $ 6,326 $ 2,342 $ 2,534 $ 140,573 $ 240,739
============ =========== ============ =========== ============== ================ =============
</Table>
(*) All amounts represent the Company's share.
(1) Boston Properties has a 51% interest in this property.
(2) Boston Properties has a 50% interest in this property.
(3) Boston Properties has a 25% interest in this property.
(4) Boston Properties has a 35% interest in this property.
(5) This loan was repaid on April 1, 2003 in conjunction with the
acquisition by Boston Properties of its joint venture partner's interest.
17
<Page>
PORTFOLIO OVERVIEW - SQUARE FOTTAGE
- -------------------------------------------------------------------------------
RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION
AND TYPE OF PROPERTY
- -------------------------------------------------------------------------------
<Table>
<Caption>
GEOGRAPHIC AREA OFFICE (1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL
- ------------------------------ -------------- ------------------ ------------ ------------- -------------
Greater Boston 7,774,526 (2) 545,206 152,009 8,471,741 27.55%
Greater Washington 5,829,472 (3) 970,865 - 6,800,337 22.11%
Greater San Francisco 4,714,072 142,366 60,000 4,916,438 15.99%
Midtown Manhattan 6,542,298 - - 6,542,298 21.27%
Princeton/East Brunswick, NJ 2,317,533 - - 2,317,533 7.54%
Baltimore, MD 641,469 - - 641,469 2.09%
Richmond, VA 901,757 - - 901,757 2.93%
Bucks County, PA - - 161,000 161,000 0.52%
-------------- ------------------ ------------ ------------- -------------
28,721,127 1,658,437 373,009 30,752,573 100.00%
============== ================== ============ ============= =============
% of Total 93.39% 5.39% 1.21% 100.00%
</Table>
HOTEL PROPERTIES
- -------------------------------------------------------------------------------
<Table>
<Caption>
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
============= =============
</Table>
STRUCTURE PARKING
- -------------------------------------------------------------------------------
<Table>
<Caption>
NUMBER OF SQUARE
SPACES FEET
------------- -------------
Total Structured Parking 20,710 6,719,991
============= =============
</Table>
(1) Includes retail square footage of approximately 1,200,000.
(2) Includes 343,913 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, 401,279 square feet at Market Square North
which is 50% owned by Boston Properties and 181,019 square feet at
Discovery Square which is 50% owned by Boston Properties.
18
<Page>
IN-SERVICE PROPERTY LISTING
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
CENTRAL
ANNUALIZED ENCUMBERED BUSINESS
REVENUE WITH DISTRICT
PER SECURED (CBD) OR
NUMBER OF SQUARE LEASED LEASED DEBT SUBURBAN
SUB MARKET BUILDINGS FEET % SF (Y/N) (S)
---------------------- --------- --------- ------ -------- ---------- --------
GREATER BOSTON
Office
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,175,218 91.0% 38.26 Y CBD
(1)111 Huntington Avenue - The Prudential Center CBD Boston MA 1 854,129 98.7% 49.11 N CBD
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 515,984 83.0% 40.47 Y CBD
(2)The Shops at the Prudential Center CBD Boston MA 1 551,724 97.1% 44.22 Y CBD
265 Franklin Street (35% ownership) CBD Boston MA 1 343,913 69.5% 56.19 Y CBD
One Cambridge Center East Cambridge MA 1 215,385 95.9% 44.55 N CBD
Three Cambridge Center East Cambridge MA 1 107,484 100.0% 30.86 N CBD
Eight Cambridge Center East Cambridge MA 1 177,226 100.0% 31.63 Y CBD
Ten Cambridge Center East Cambridge MA 1 152,664 100.0% 32.67 Y CBD
Eleven Cambridge Center East Cambridge MA 1 79,616 100.0% 43.49 N CBD
University Place Mid-Cambridge MA 1 195,282 100.0% 36.59 Y CBD
Reservoir Place Route 128 Mass Turnpike MA 1 521,060 84.9% 33.84 Y S
204 Second Avenue Route 128 Mass Turnpike MA 1 40,974 52.7% 36.81 N S
140 Kendrick Street (25% ownership) Route 128 Mass Turnpike MA 3 380,987 100.0% 27.35 Y S
170 Tracer Lane Route 128 Mass Turnpike MA 1 75,073 91.3% 30.82 N S
Waltham Office Center Route 128 Mass Turnpike MA 3 130,209 87.0% 31.06 N S
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0% 48.20 N S
200 West Street Route 128 Mass Turnpike MA 1 248,048 100.0% 35.62 N S
(1)Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 308,599 43.1% 33.94 N S
10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 88.7% 30.17 Y S
Bedford Business Park Route 128 Northwest MA 1 90,000 100.0% 20.72 Y S
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0% 29.77 N S
91 Hartwell Avenue Route 128 Northwest MA 1 118,486 90.9% 36.01 Y S
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0% 52.49 N S
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0% 19.95 N S
33 Hayden Avenue Route 128 Northwest MA 1 81,536 42.9% 31.32 N S
Lexington Office Park Route 128 Northwest MA 2 167,293 85.7% 30.06 N S
191 Spring Street Route 128 Northwest MA 1 162,700 100.0% 31.12 Y S
181 Spring Street Route 128 Northwest MA 1 53,595 41.2% 36.88 N S
201 Spring Street Route 128 Northwest MA 1 102,500 100.0% 32.87 N S
40 Shattuck Road Route 128 Northwest MA 1 120,000 92.2% 27.54 N S
Quorum Office Park Route 128 Northwest MA 2 259,918 100.0% 19.43 N S
Newport Office Park Route 128 South MA 1 168,829 44.6% 25.32 N S
---- ---------------------------
40 7,774,526 88.9% $33.20
---- ---------------------------
Office/Technical
Fourteen Cambridge Center East Cambridge MA 1 67,362 100.0% 22.00 N CBD
Bedford Business Park Route 128 Northwest MA 2 383,704 100.0% 14.84 Y S
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0% 11.00 N S
164 Lexington Road Route 128 Northwest MA 1 64,140 100.0% 10.57 N S
---- ---------------------------
5 545,206 100.0% $15.01
---- ---------------------------
Industrial
40-46 Harvard Street Route 128 Southwest MA 1 152,009 72.9% $ 7.47 N S
---- ---------------------------
Total Greater Boston: 46 8,471,741 89.3%
==== ===================
</Table>
(1) Not included in same property analysis
(2) 93,935 square feet of space added in Q2 2002 is not included in the same
property analysis.
19
<Page>
IN-SERVICE PROPERTY LISTING
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
CENTRAL
ANNUALIZED ENCUMBERED BUSINESS
REVENUE WITH DISTRICT
PER SECURED (CBD) OR
NUMBER OF SQUARE LEASED LEASED DEBT SUBURBAN
SUB MARKET BUILDINGS FEET % SF (Y/N) (S)
-------------------------- --------- --------- ------ -------- ---------- -------
GREATER WASHINGTON, DC
Office
Capital Gallery Southwest Washington DC 1 396,894 100.0% 38.23 Y CBD
500 E Street, N. W. Southwest Washington DC 1 242,769 100.0% 33.23 N CBD
Metropolitan Square (51% ownership) East End Washington DC 1 585,220 97.9% 39.89 Y CBD
1301 New York Avenue East End Washington DC 1 188,358 100.0% 30.81 Y CBD
Market Square North (50% ownership) East End Washington DC 1 403,721 100.0% 44.45 Y CBD
Sumner Square CBD Washington DC 1 207,620 100.0% 34.28 Y CBD
Decoverly Two Montgomery County MD 1 77,747 100.0% 24.18 N S
Decoverly Three Montgomery County MD 1 77,040 100.0% 26.01 N S
Democracy Center Montgomery County MD 3 680,644 95.8% 29.87 Y S
Montvale Center Montgomery County MD 1 120,823 85.8% 24.04 Y S
2600 Tower Oaks Boulevard Montgomery County MD 1 178,887 100.0% 32.21 Y S
Orbital Sciences 1&3 Loudoun County 2 176,726 100.0% 23.66 N S
Orbital Sciences 2 Loudoun County 1 160,502 100.0% 23.66 N S
The Arboretum Fairfax County VA 1 95,584 100.0% 25.91 N S
One Freedom Square (25% ownership) Fairfax County VA 1 410,308 100.0% 33.95 Y S
One Reston Overlook Fairfax County VA 1 312,685 100.0% 24.70 Y S
Two Reston Overlook Fairfax County VA 1 131,594 82.2% 32.75 Y S
(1)(2)One Discovery Square (50% ownership) Fairfax County VA 1 181,019 100.0% 36.69 Y S
(1)(2)Two Discovery Square (50% ownership) Fairfax County VA 1 185,970 81.9% 30.52 Y S
New Dominion Technology Park Fairfax County VA 1 235,201 100.0% 26.77 Y S
Reston Corporate Center Fairfax County VA 2 261,046 100.0% 26.78 Y S
Lockheed Martin Building Fairfax County VA 1 255,244 100.0% 30.59 Y S
NIMA Building Fairfax County VA 1 263,870 100.0% 29.44 Y S
---------------------------------
27 5,829,472 98.0% $32.27
---------------------------------
Office/Technical
(1)Broad Run Business Park Loudoun County 1 127,226 54.7% 21.72 N S
Sugarland Business Park, Building One Fairfax County VA 1 52,797 22.8% 22.12 N S
Sugarland Business Park, Building Two Fairfax County VA 1 59,215 65.9% 20.25 N S
7435 Boston Boulevard Fairfax County VA 1 103,557 82.3% 15.22 N S
7451 Boston Boulevard Fairfax County VA 1 47,001 66.1% 15.85 N S
7450 Boston Boulevard Fairfax County VA 1 62,402 100.0% 20.36 N S
7374 Boston Boulevard Fairfax County VA 1 57,321 100.0% 13.82 N S
8000 Grainger Court Fairfax County VA 1 90,465 71.9% 13.71 N S
7500 Boston Boulevard Fairfax County VA 1 79,971 100.0% 14.60 N S
7501 Boston Boulevard Fairfax County VA 1 75,756 100.0% 22.89 N S
7601 Boston Boulevard Fairfax County VA 1 103,750 100.0% 13.81 N S
7375 Boston Boulevard Fairfax County VA 1 26,865 100.0% 17.83 N S
8000 Corporate Court Fairfax County VA 1 52,539 100.0% 10.27 N S
(1)7300 Boston Boulevard Fairfax County VA 1 32,000 100.0% 20.86 N S
---------------------------------
14 970,865 81.6% $16.82
---------------------------------
Total Greater Washington: 41 6,800,337 95.7%
========================
</Table>
(1) Not included in same property analysis
(2) We acquired the remaining 50% interest in these assets and repaid all
indebtedness on April 1, 2003.
20
<Page>
IN-SERVICE PROPERTY LISTING
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
CENTRAL
ANNUALIZED ENCUMBERED BUSINESS
REVENUE WITH DISTRICT
PER SECURED (CBD) OR
NUMBER OF SQUARE LEASED LEASED DEBT SUBURBAN
SUB MARKET BUILDINGS FEET % SF (Y/N) (S)
------------------------- --------- --------- ------ -------- ---------- --------
MIDTOWN MANHATTAN
Office
599 Lexington Avenue Park Avenue NY 1 1,017,354 97.1% 64.73 Y CBD
280 Park Avenue Park Avenue NY 1 1,167,773 98.1% 57.09 Y CBD
Citigroup Center Park Avenue NY 1 1,577,959 99.9% 58.38 Y CBD
(1)399 Park Avenue Park Avenue NY 1 1,677,433 100.0% 68.32 N CBD
(1)5 Times Square Times Square NY 1 1,101,779 100.0% 51.36 Y CBD
---- ---------------------------
Total Midtown Manhattan: 5 6,542,298 99.2% $60.49
==== ===========================
Princeton/East Brunswick, NJ
Office
101 Carnegie Center Princeton NJ 1 123,659 100.0% $29.07 Y S
104 Carnegie Center Princeton NJ 1 102,830 85.2% 32.54 N S
105 Carnegie Center Princeton NJ 1 69,648 100.0% 29.39 N S
201 Carnegie Center Princeton NJ - 6,500 100.0% 24.57 N S
202 Carnegie Center Princeton NJ 1 128,705 100.0% 30.77 Y S
210 Carnegie Center Princeton NJ 1 161,112 100.0% 32.19 N S
211 Carnegie Center Princeton NJ 1 47,025 100.0% 25.51 N S
212 Carnegie Center Princeton NJ 1 148,233 100.0% 32.78 N S
214 Carnegie Center Princeton NJ 1 152,214 92.3% 31.15 Y S
206 Carnegie Center Princeton NJ 1 161,763 100.0% 28.98 Y S
302 Carnegie Center Princeton NJ 1 65,135 95.5% 31.65 N S
502 Carnegie Center Princeton NJ 1 116,374 95.3% 31.70 N S
510 Carnegie Center Princeton NJ 1 234,160 100.0% 26.79 Y S
504 Carnegie Center Princeton NJ 1 121,990 100.0% 27.67 Y S
506 Carnegie Center Princeton NJ 1 136,213 88.3% 28.98 Y S
508 Carnegie Center Princeton NJ 1 131,085 100.0% 27.23 Y S
One Tower Center East Brunswick NJ 1 410,887 84.4% 34.23 N S
---- ---------------------------
Total Princeton/East B 16 2,317,533 95.0% $30.42
==== ===========================
GREATER SAN FRANCISCO
Office
Embarcadero Center One CBD San Francisco CA 1 836,256 95.3% 43.00 Y CBD
Embarcadero Center Two CBD San Francisco CA 1 779,519 86.3% 45.79 Y CBD
Embarcadero Center Three CBD San Francisco CA 1 778,752 85.7% 41.14 Y CBD
Embarcadero Center Four CBD San Francisco CA 1 935,821 92.6% 61.29 Y CBD
Federal Reserve CBD San Francisco CA 1 149,592 99.8% 49.59 Y CBD
West Tower CBD San Francisco CA 1 474,048 96.1% 47.59 Y CBD
(1)611 Gateway South San Francisco CA 1 250,825 0.0% - N S
601 and 651 Gateway South San Francisco CA 2 509,259 83.4% 38.02 Y S
---- ---------------------------
9 4,714,072 85.6% $47.33
---- ---------------------------
Office/Technical
---- ---------------------------
Hilltop Office Center South San Francisco CA 9 142,366 83.1% $14.79 Y S
---- ---------------------------
Industrial
560 Forbes Blvd South San Francisco CA 1 40,000 100.0% 10.62 N S
430 Rozzi Place South San Francisco CA 1 20,000 100.0% 11.80 N S
---- ---------------------------
2 60,000 100.0% $10.91
---- ---------------------------
Total Greater San Francisco: 20 4,916,438 85.7%
==== =================
</Table>
(1) Not included in same property analysis
21
<Page>
IN-SERVICE PROPERTY LISTING
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
ANNUALIZED ENCUMBERED
REVENUE WITH CENTRAL
PER SECURED BUSINESS
NUMBER OF SQUARE LEASED LEASED DEBT DISTRICT (CBD)
SUB MARKET BUILDINGS FEET % SF (Y/N) OR SUBURBAN (S)
---------------------- ---------- ---------- ------- ---------- ---------- ---------------
BALTIMORE, MD
Office
----- ------------------------------
100 East Pratt Street Baltimore MD 1 641,469 98.5% $29.62 Y CBD
===== ==============================
RICHMOND, VA
Office
Riverfront Plaza Richmond VA 1 901,757 92.1% $24.85 Y CBD
===== ==============================
BUCKS COUNTY, PA
Industrial
38 Cabot Boulevard Bucks County PA 1 161,000 100.0% $ 4.79 N S
===== ==============================
Total In-Service Properties: 131 30,752,573 93.0%
===== ===================
</Table>
22
<Page>
TOP 20 TENANTS BY SQUARE FEET LEASED
- --------------------------------------------------------------------------------
<Table>
<Caption>
% OF
TENANT SQ. FT. PORTFOLIO
- ----------------------------------------- --------- ---------
1 U.S. Government 1,397,980 4.55%
2 Citibank, N.A. 1,221,602 3.97%
3 Ernst and Young 1,064,939 3.46%
4 Lockheed Martin Corporation 672,627 2.19%
5 Shearman & Sterling 585,808 1.90%
6 Gillette Company 485,932 1.58%
7 Lehman Brothers 436,723 1.42%
8 Parametric Technology Corp. (1) 380,987 1.24%
9 Washington Group International 365,245 1.19%
10 Deutsche Bank 346,617 1.13%
11 Orbital Sciences Corporation 337,228 1.10%
12 Wachovia 319,966 1.04%
13 TRW, Inc. 318,963 1.04%
14 T. Rowe Price Associates, Inc. 304,129 0.99%
15 Hunton & Williams 301,081 0.98%
16 Digitas 279,182 0.91%
17 Accenture (1) 265,622 0.86%
18 Kirkland & Ellis 264,867 0.86%
19 Tellabs Operations, Inc. 259,918 0.85%
20 Covance 258,831 0.84%
Total % of Portfolio Square Feet 32.09%
Total % of Portfolio Revenue 33.35%
</Table>
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
- --------------------------------------------------------------------------------
<Table>
<Caption>
TENANT SQ. FT.
----------------------------------------------------- ---------
Finnegan Henderson Farabow Garrett & Dunner, LLP (2) 348,542
U.S. Government 257,400
O'Melveney & Myers 206,958
</Table>
(1) These tenants occupy space in a property in which Boston Properties has a
25% interest.
(2) Includes 97,205 sf of space in a property in which Boston Properties has a
50% interest and the remainder in a property in which Boston Properties has
a 25% interest.
23
<Page>
PORTFOLIO OVERVIEW
- --------------------------------------------------------------------------------
PERCENTAGE OF RENTAL REVENUES LESS OPERATING AND REAL ESTATE TAXES FOR
IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY
FOR THE QUARTER ENDED MARCH 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE/
GEOGRAPHIC AREA OFFICE (1) TECHNICAL INDUSTRIAL HOTEL TOTAL
- --------------------------------- ------------- ------------- ------------- ------------- --------------
Greater Boston 21.2% 0.8% 0.1% 1.1% 23.2%
Greater Washington 12.9% 1.0% - - 13.9%
Greater San Francisco 16.2% 0.1% 0.2% - 16.5%
Midtown Manhattan 37.3% - - - 37.3%
Princeton/East Brunswick, NJ 5.2% - - - 5.2%
Baltimore, MD 1.9% - - - 1.9%
Richmond, VA 1.9% - - - 1.9%
Bucks County, PA - - 0.1% - 0.1%
------------- ------------- ------------- ------------- --------------
Total 96.6% 1.9% 0.3% 1.1% 100.0%
============= ============= ============= ============= ==============
<Caption>
GEOGRAPHIC AREA CBD SUBURBAN TOTAL
- --------------------------------- ------------- ------------- --------------
Greater Boston 15.7% 7.5% 23.2%
Greater Washington 4.5% 9.4% 13.9%
Greater San Francisco 15.0% 1.6% 16.5%
Midtown Manhattan 37.3% - 37.3%
Princeton/East Brunswick, NJ - 5.2% 5.2%
Baltimore, MD 1.9% - 1.9%
Richmond, VA 1.9% - 1.9%
Bucks County, PA - 0.1% 0.1%
------------- ------------- --------------
Total 76.3% 23.8% 100.0%
============= ============= ==============
</Table>
(1) Includes Retail Center (Prudential Center and Embarcadero Center).
24
<Page>
OCCUPANCY ANALYSIS
- --------------------------------------------------------------------------------
SAME PROPERTY OCCUPANCY - BY LOCATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
LOCATION 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
- ----------------------------- ------------- ------------- ------------ ----------- ------------ -----------
Greater Boston 90.9% 91.9% 89.4% 93.6% 90.1% 92.8%
Greater Washington 99.4% 99.0% 96.1% 95.4% 97.2% 96.6%
Midtown Manhattan 98.6% 99.8% - - 98.6% 99.8%
Baltimore, MD 98.5% 98.2% - - 98.5% 98.2%
Princeton/East Brunswick, NJ - - 95.0% 89.4% 95.0% 89.4%
Richmond, VA 92.1% 94.4% - - 92.1% 94.4%
Greater San Francisco 91.3% 94.2% 84.7% 87.1% 90.3% 93.1%
Bucks County, PA - - 100.0% 100.0% 100.0% 100.0%
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio 94.5% 95.9% 93.0% 93.1% 93.9% 94.7%
============= ============= ============ =========== ============ ===========
</Table>
SAME PROPERTY - BY TYPE OF PROPERTY
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
------------- ------------- ------------ ----------- ------------ -----------
Total Office Portfolio 94.5% 95.9% 93.3% 92.3% 94.0% 94.5%
Total Office/Technical Portfolio 100.0% 100.0% 91.7% 96.8% 92.0% 97.0%
Total Industrial Portfolio - - 89.0% 100.0% 89.0% 100.0%
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio 94.5% 95.9% 93.0% 93.1% 93.9% 94.7%
============= ============= ============ =========== ============ ===========
</Table>
25
<Page>
IN-SERVICE OFFICE
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS
- --------------------------------------------------------------------------------
<Table>
<Caption>
CURRENT ANNUALIZED ANNUALIZED
RENTABLE CURRENT ANNUALIZED REVENUES REVENUES UNDER
YEAR OF SQUARE FOOTAGE ANNUALIZED REVENUES UNDER EXPIRING EXPIRING LEASES
LEASE SUBJECT TO REVENUES UNDER UNDER EXPIRING LEASES WITH WITH FUTURE PERCENTAGE OF
EXPIRATION EXPIRING LEASES EXPIRING LEASES LEASES P.S.F. FUTURE STEP-UPS STEP-UPS - P.S.F. TOTAL SQUARE FEET
- ---------- --------------- --------------- ------------- --------------- ----------------- -----------------
2003 934,880 $ 31,905,442 $ 34.13 $ 33,080,461 $ 35.38 3.43%
2004 2,021,303 80,659,771 39.90 80,976,323 40.06 7.41%
2005 2,428,800 92,483,117 38.08 94,689,090 38.99 8.91%
2006 3,055,531 127,406,353 41.70 131,682,176 43.10 11.21%
2007 2,319,383 88,737,857 38.26 91,668,427 39.52 8.51%
2008 1,445,992 59,311,164 41.02 62,540,091 43.25 5.30%
2009 2,395,297 91,728,230 38.30 101,168,091 42.24 8.79%
2010 1,354,755 61,963,598 45.74 72,188,331 53.29 4.97%
2011 2,640,733 108,229,193 40.98 124,175,210 47.02 9.69%
2012 1,970,433 93,093,314 47.25 100,105,961 50.80 7.23%
Thereafter 4,928,886 241,135,520 48.92 292,787,451 59.40 18.08%
</Table>
OCCUPANCY BY LOCATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
LOCATION 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
- ----------------------------- ------------- ------------- ------------ ----------- ------------ -----------
Greater Boston 92.3% 91.8% 84.4% 92.4% 88.9% 92.0%
Greater Washington 99.4% 99.3% 97.3% 95.1% 98.0% 97.1%
Midtown Manhattan 99.2% 99.2% - - 98.0% 99.2%
Baltimore, MD 98.5% 98.2% - - 98.5% 98.2%
Princeton/East Brunswick, NJ - - 95.0% 89.4% 95.0% 94.4%
Richmond, VA 92.1% 94.4% - - 92.1% 89.4%
Greater San Francisco 91.3% 94.2% 55.9% 87.0% 85.6% 93.4%
Bucks County, PA n/a n/a n/a n/a n/a n/a
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio 95.5% 96.4% 89.5% 92.4% 93.3% 95.0%
============= ============= ============ =========== ============ ===========
</Table>
* Includes approximately 1,500,000 of retail square footage.
26
<Page>
IN-SERVICE OFFICE/TECHINICAL PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS
- --------------------------------------------------------------------------------
<Table>
<Caption>
CURRENT ANNUALIZED ANNUALIZED
RENTABLE CURRENT ANNUALIZED REVENUES REVENUES UNDER
YEAR OF SQUARE FOOTAGE ANNUALIZED REVENUES UNDER EXPIRING EXPIRING LEASES
LEASE SUBJECT TO REVENUES UNDER UNDER EXPIRING LEASES WITH WITH FUTURE PERCENTAGE OF
EXPIRATION EXPIRING LEASES EXPIRING LEASES LEASES P.S.F. FUTURE STEP-UPS STEP-UPS - P.S.F. TOTAL SQUARE FEET
- ---------- --------------- --------------- ------------- --------------- ----------------- -----------------
2003 108,048 1,601,327 $ 14.82 $ 1,601,327 $ 14.82 6.52%
2004 82,291 1,455,479 17.69 1,481,003 18.00 4.96%
2005 148,414 2,108,360 14.21 2,207,509 14.87 8.95%
2006 297,604 3,994,589 13.42 4,382,165 14.72 17.94%
2007 317,912 5,381,118 16.93 5,941,443 18.69 19.17%
2008 - - - - - -
2009 - - - - - -
2010 79,971 1,167,906 14.60 1,167,906 14.60 4.82%
2011 137,321 2,376,904 17.31 2,576,904 18.77 8.28%
2012 67,362 1,481,908 22.00 1,633,473 24.25 4.06%
Thereafter 135,750 2,100,261 15.47 2,329,700 17.16 8.19%
</Table>
OCCUPANCY BY LOCATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
LOCATION 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
- ----------------------------- ------------- ------------- ------------ ----------- ------------ -----------
Greater Boston 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Greater Washington - - 81.6% 97.7% 81.6% 97.7%
Midtown Manhattan n/a n/a n/a n/a n/a n/a
Baltimore, MD n/a n/a n/a n/a n/a n/a
Princeton/East Brunswick, NJ n/a n/a n/a n/a n/a n/a
Richmond, VA n/a n/a n/a n/a n/a n/a
Greater San Francisco - - 83.1% 82.1% 83.1% 82.1%
Bucks County, PA n/a n/a n/a n/a n/a n/a
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio 100.0% 100.0% 87.3% 96.9% 87.8% 97.0%
============= ============= ============ =========== ============ ===========
</Table>
27
<Page>
IN-SERVICE INDUSTRIAL PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS
- --------------------------------------------------------------------------------
<Table>
<Caption>
CURRENT ANNUALIZED ANNUALIZED
RENTABLE CURRENT ANNUALIZED REVENUES REVENUES UNDER
YEAR OF SQUARE FOOTAGE ANNUALIZED REVENUES UNDER EXPIRING EXPIRING LEASES
LEASE SUBJECT TO REVENUES UNDER UNDER EXPIRING LEASES WITH WITH FUTURE PERCENTAGE OF
EXPIRATION EXPIRING LEASES EXPIRING LEASES LEASES P.S.F. FUTURE STEP-UPS STEP-UPS - P.S.F. TOTAL SQUARE FEET
- ---------- --------------- --------------- ------------- --------------- ----------------- -----------------
2003 128,105 $ 956,761 $ 7.47 $ 956,761 $ 7.47 34.34%
2004 201,000 1,195,884 5.95 1,205,484 6.00 53.89%
2005 - - - - - -
2006 - - - - - -
2007 20,000 235,932 11.80 260,859 13.04 5.36%
2008 - - - - - -
2009 - - - - - -
2010 - - - - - -
2011 - - - - - -
2012 - - - - - -
Thereafter - - - - - -
</Table>
OCCUPANCY BY LOCATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
LOCATION 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
- ----------------------------- ------------- ------------- ------------ ----------- ------------ -----------
Greater Boston - - 72.9% 100.0% 72.9% 100.0%
Greater Washington n/a n/a n/a n/a n/a n/a
Midtown Manhattan n/a n/a n/a n/a n/a n/a
Baltimore, MD n/a n/a n/a n/a n/a n/a
Princeton/East Brunswick, NJ n/a n/a n/a n/a n/a n/a
Richmond, VA n/a n/a n/a n/a n/a n/a
Greater San Francisco - - 100.0% 78.6% 100.0% 78.6%
Bucks County, PA - - 100.0% 100.0% 100.0% 100.0%
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio - - 89.0% 89.9% 89.0% 89.9%
============= ============= ============ =========== ============ ===========
</Table>
28
<Page>
IN-SERVICE RETAIL PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS
- --------------------------------------------------------------------------------
<Table>
<Caption>
CURRENT ANNUALIZED ANNUALIZED
RENTABLE CURRENT ANNUALIZED REVENUES REVENUES UNDER
YEAR OF SQUARE FOOTAGE ANNUALIZED REVENUES UNDER EXPIRING EXPIRING LEASES
LEASE SUBJECT TO REVENUES UNDER UNDER EXPIRING LEASES WITH WITH FUTURE PERCENTAGE OF
EXPIRATION EXPIRING LEASES EXPIRING LEASES LEASES P.S.F. FUTURE STEP-UPS STEP-UPS - P.S.F. TOTAL SQUARE FEET
- ---------- --------------- --------------- ------------- --------------- ----------------- -----------------
2003 76,417 $ 5,019,852 $ 65.69(1) $ 5,429,592 $ 71.05 5.25%
2004 83,788 4,731,191 56.47 4,813,473 57.45 5.75%
2005 93,975 3,606,561 38.38 3,736,052 39.76 6.45%
2006 55,566 2,497,448 44.95 2,527,233 45.48 3.81%
2007 47,479 1,920,637 40.45 2,055,205 43.29 3.26%
2008 61,901 2,500,575 40.40 2,670,280 43.14 4.25%
2009 35,048 1,201,172 34.27 1,287,910 36.75 2.41%
2010 84,321 3,265,547 38.73 3,648,961 43.27 5.79%
2011 41,289 2,497,391 60.49 2,898,528 70.20 2.83%
2012 100,460 4,073,451 40.55 4,645,521 46.24 6.90%
Thereafter 530,046 25,193,664 47.53 31,493,579 59.42 36.39%
</Table>
(1) Includes $1,366,400 of annual revenue from the Prudential Center retail
kiosks for which there is zero square footage assigned.
29
<Page>
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CURRENT ANNUALIZED ANNUALIZED
RENTABLE CURRENT ANNUALIZED REVENUES REVENUES UNDER
YEAR OF SQUARE FOOTAGE ANNUALIZED REVENUES UNDER EXPIRING EXPIRING LEASES
LEASE SUBJECT TO REVENUES UNDER UNDER EXPIRING LEASES WITH WITH FUTURE PERCENTAGE OF
EXPIRATION EXPIRING LEASES EXPIRING LEASES LEASES P.S.F. FUTURE STEP-UPS STEP-UPS - P.S.F. TOTAL SQUARE FEET
- ---------- --------------- --------------- ------------- --------------- ----------------- -----------------
2003 1,247,450 $ 39,483,381 $ 31.65 $ 41,068,141 $ 32.92 4.06%
2004 2,388,382 88,042,325 36.86 88,476,284 37.04 7.77%
2005 2,671,189 98,198,037 36.76 100,632,651 37.67 8.69%
2006 3,408,701 133,898,390 39.28 138,591,575 40.66 11.08%
2007 2,704,774 96,275,545 35.59 99,925,933 36.94 8.80%
2008 1,507,893 61,811,739 40.99 65,210,371 43.25 4.90%
2009 2,430,345 92,929,402 38.24 102,456,001 42.16 7.90%
2010 1,519,047 66,397,050 43.71 77,005,197 50.69 4.94%
2011 2,819,343 113,103,488 40.12 129,650,643 45.99 9.17%
2012 2,138,255 98,648,673 46.14 106,384,954 49.75 6.95%
Thereafter 5,594,682 268,429,444 47.98 326,610,731 58.38 18.19%
</Table>
OCCUPANCY BY LOCATION
- --------------------------------------------------------------------------------
<Table>
<Caption>
CBD SUBURBAN TOTAL
------------------------------ ------------------------ -------------------------
LOCATION 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02 31-MAR-03 31-MAR-02
- ----------------------------- ------------- ------------- ------------ ----------- ------------ -----------
Greater Boston 92.4% 91.9% 85.8% 93.6% 89.3% 92.8%
Greater Washington 99.4% 99.3% 94.1% 95.6% 95.7% 97.2%
Midtown Manhattan 99.2% 99.2% - - 99.2% 99.2%
Baltimore, MD 98.5% 98.2% - - 98.5% 98.2%
Princeton/East Brunswick, NJ - - 95.0% 89.4% 95.0% 94.4%
Richmond, VA 92.1% 94.4% - - 92.1% 89.4%
Greater San Francisco 91.3% 94.2% 62.6% 83.7% 85.7% 92.2%
Bucks County, PA - - 100.0% 100.0% 100.0% 100.0%
------------- ------------- ------------ ----------- ------------ -----------
Total Portfolio 95.5% 96.4% 89.2% 92.8% 93.0% 95.1%
============= ============= ============ =========== ============ ===========
</Table>
30
<Page>
IN-SERVICE GREATER BOSTON PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS - GREATER BOSTON
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 186,178 $ 6,151,291 $ 33.04 $ 7,220,021 $ 38.78
2004 569,330 22,193,188 38.98 22,499,006 39.52
2005 860,062 34,498,142 40.11 35,083,077 40.79
2006 549,149 20,093,990 36.59 20,444,355 37.23
2007 476,404 18,984,677 39.85 19,635,178 41.22
2008 318,472 10,389,164 32.62 10,985,588 34.49
2009 976,179 35,602,391 36.47 39,343,548 40.30
2010 197,524 6,877,307 34.82 7,717,837 39.07
2011 762,735 28,440,889 37.29 33,578,036 44.02
2012 613,127 22,313,579 36.39 24,711,065 40.30
Thereafter 679,652 26,771,786 39.39 34,227,386 50.36
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 253,704 3,303,315 13.02 3,637,962 14.34
2007 144,140 1,813,124 12.58 2,236,404 15.52
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 80,000 1,584,819 19.81 1,784,820 22.31
2012 67,362 1,481,908 22.00 1,633,473 24.25
Thereafter - - - - -
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 128,105 $ 956,761 $ 7.47 $ 956,761 $ 7.47
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 46,336 $ 3,787,977 $ 81.75 $ 4,197,717 $ 90.59
2004 41,351 3,103,457 75.05 3,161,919 76.47
2005 59,879 2,231,245 37.26 2,303,245 38.46
2006 15,653 999,001 63.82 1,005,681 64.25
2007 432 85,923 198.90 93,300 215.97
2008 13,833 720,177 52.06 720,177 52.06
2009 - - - - -
2010 38,265 1,466,557 38.33 1,540,777 40.27
2011 11,599 581,328 50.12 629,829 54.30
2012 52,284 1,719,316 32.88 1,779,540 34.04
Thereafter 345,026 10,533,989 30.53 12,301,530 35.65
</Table>
(1) Includes $1,366,400 of annual revenue from the Prudential Center retail
kiosks for which there is zero square footage assigned.
31
<Page>
IN-SERVICE GREATER BOSTON PROPERTIES
- --------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS - GREATER BOSTON
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 79,346 2,506,322 31.59 2,650,365 33.40
Q3 2003 68,477 2,519,880 36.80 3,449,830 50.38
Q4 2003 38,355 1,125,088 29.33 1,119,826 29.20
--------- ------------- ------- ------------- -------
Total 2003 186,178 $ 6,151,291 $ 33.04 $ 7,220,021 $ 38.78
========= ============= ======= ============= =======
Q1 2004 57,562 $ 1,991,543 34.60 $ 1,998,437 34.72
Q2 2004 78,637 2,789,802 35.48 2,813,403 35.78
Q3 2004 334,637 13,779,717 41.18 14,027,794 41.92
Q4 2004 98,494 3,632,126 36.88 3,659,371 37.15
--------- ------------- ------- ------------- -------
Total 2004 569,330 $22,193,188 $ 38.98 $22,499,006 $ 39.52
========= ============= ======= ============= =======
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
--------- ------------- ------- ------------- -------
Total 2003 - $ - $ - $ - $ -
========= ============= ======= ============= =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
--------- ------------- ------- ------------- -------
Total 2004 - $ - $ - $ - $ -
========= ============= ======= ============= =======
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 128,105 956,761 7.47 956,761 7.47
Q4 2003 - - - - -
--------- ------------- ------- -------------- -------
Total 2003 128,105 $ 956,761 $ 7.47 $ 956,761 $ 7.47
========= ============= ======= ============== =======
Q1 2004 - $ - $ - - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
--------- ------------- ------- -------------- -------
Total 2004 - $ - $ - $ - $ -
========= ============= ======= ============== =======
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 18,000 1,181,414 65.63 1,436,006 79.78
Q3 2003 1,075 115,000 106.98 139,000 129.30
Q4 2003 27,261 2,491,563 91.40 2,622,711 96.21
--------- ------------- ------- ------------- -------
Total 2003 46,336 $ 3,787,977 $ 81.75 $ 4,197,717 $ 90.59
========= ============= ======= ============= =======
Q1 2004 23,776 $ 1,911,075 80.38 $ 1,969,537 $ 82.84
Q2 2004 9,669 682,665 70.60 682,665 70.60
Q3 2004 3,187 270,095 84.75 270,095 84.75
Q4 2004 4,719 239,622 50.78 239,622 50.78
--------- ------------- ------- ------------- -------
Total 2004 41,351 $ 3,103,457 $ 75.05 $ 3,161,919 $ 76.47
========= ============= ======= ============= =======
</Table>
32
<Page>
IN-SERVICE GREATER WASHINGTON PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS - GREATER WASHINGTON
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 115,118 $ 3,477,168 $ 30.21 $ 3,488,347 $ 30.30
2004 223,328 8,295,901 37.15 8,400,122 37.61
2005 468,812 16,822,847 35.88 17,781,855 37.93
2006 428,211 12,284,660 28.69 13,408,968 31.31
2007 627,655 20,679,207 32.95 20,933,830 33.35
2008 453,474 13,655,652 30.11 14,416,923 31.79
2009 712,625 24,512,874 34.40 26,232,419 36.81
2010 501,777 19,400,336 38.66 25,228,577 50.28
2011 1,062,026 32,702,140 30.79 38,792,015 36.53
2012 312,983 10,540,351 33.68 13,316,440 42.55
Thereafter 773,480 21,634,176 27.97 27,483,620 35.53
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 75,528 $ 1,049,148 $ 13.89 $ 1,049,148 $ 13.89
2004 67,791 1,217,855 17.96 1,237,019 18.25
2005 101,345 1,446,473 14.27 1,518,693 14.99
2006 33,400 527,690 15.80 569,160 17.04
2007 163,422 3,439,114 21.04 3,546,639 21.70
2008 - - - - -
2009 - - - - -
2010 79,971 1,167,906 14.60 1,167,906 14.60
2011 57,321 792,084 13.82 792,084 13.82
2012 - - - - -
Thereafter 135,750 2,100,261 15.47 2,329,700 17.16
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 810 $ 25,880 $ 31.95 $ 25,880 $31.95
2004 3,026 141,873 46.88 144,898 47.88
2005 4,274 141,615 33.13 144,134 33.72
2006 3,309 114,577 34.63 114,942 34.74
2007 16,548 426,048 25.75 452,000 27.31
2008 16,338 598,212 36.61 685,147 41.94
2009 - - - - -
2010 10,277 379,567 36.93 440,272 42.84
2011 11,221 475,535 42.38 535,392 47.71
2012 7,519 154,829 20.59 189,058 25.14
Thereafter 17,153 551,814 32.17 870,684 50.76
</Table>
33
<Page>
IN-SERVICE GREATER WASHINGTON PROPERTIES
- --------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS - GREATER WASHINGTON
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 72,840 2,122,428 29.14 2,122,428 29.14
Q3 2003 23,624 858,856 36.36 868,067 36.75
Q4 2003 18,654 495,884 26.58 497,851 26.69
--------- ------------- ------- ------------- -------
Total 2003 115,118 $ 3,477,168 $ 30.21 $ 3,488,347 $ 30.30
========= ============= ======= ============= =======
Q1 2004 50,565 $ 1,684,144 $ 33 1,690,445 33.43
Q2 2004 46,308 1,469,143 31.73 1,501,158 32.42
Q3 2004 94,622 3,946,573 41.71 3,988,849 42.16
Q4 2004 31,833 1,196,041 37.57 1,219,669 38.31
--------- ------------- ------- ------------- -------
Total 2004 223,328 $ 8,295,901 $ 37.15 $ 8,400,122 $ 37.61
========= ============= ======= ============= =======
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 23,439 354,985 15.15 354,985 15.15
Q3 2003 45,089 574,611 12.74 574,611 12.74
Q4 2003 7,000 119,551.32 17.08 119,551.32 17.08
--------- ------------- ------- ------------- -------
Total 2003 75,528 $ 1,049,148 $ 13.89 $ 1,049,148 $ 13.89
========= ============= ======= ============= =======
Q1 2004 14,338 $ 233,850 16.31 239,826 16.73
Q2 2004 43,101 758,705 17.60 765,405 17.76
Q3 2004 - - - - -
Q4 2004 10,352 225,301 21.76 231,788 22.39
--------- ------------- ------- ------------- -------
Total 2004 67,791 $ 1,217,855 $ 17.96 $ 1,237,019 $ 18.25
========= ============= ======= ============= =======
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
--------- ------------- ------- ------------- -------
Total 2003 - $ - $ - - -
========= ============= ======= ============= =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
--------- ------------- ------- ------------- -------
Total 2004 - $ - $ - $ - $ -
========= ============= ======= ============= =======
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 810 25,880 31.95 25,880 31.95
--------- ------------- ------- ------------- -------
Total 2003 810 $ 25,880 $ 31.95 $ 25,880 $ 31.95
========= ============= ======= ============= =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 3,026 141,873 46.88 144,898 47.88
Q3 2004 - - - - -
Q4 2004 - - - - -
--------- ------------- ------- ------------- -------
Total 2004 3,026 $ 141,873 $ 46.88 $ 144,898 $ 47.88
========= ============= ======= ============= =======
</Table>
34
<Page>
IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
- --------------------------------------------------------------------------------
LEASE EXPIRATIONS - GREATER SAN FRANCISCO
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 353,717 $ 13,079,585 $ 36.98 $ 13,158,200 $ 37.20
2004 565,173 25,769,922 45.60 25,623,068 45.34
2005 362,763 16,511,396 45.52 16,724,043 46.10
2006 885,615 43,334,697 48.93 45,065,058 50.89
2007 439,671 20,864,579 47.45 21,544,272 49.00
2008 206,253 8,165,192 39.59 8,612,229 41.76
2009 254,262 11,159,278 43.89 11,836,192 46.55
2010 183,923 11,046,074 60.06 12,919,894 70.25
2011 192,689 17,982,929 93.33 18,475,523 95.88
2012 122,682 5,240,737 42.72 5,755,399 46.91
Thereafter 187,954 7,690,557 40.92 8,059,952 42.88
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 32,520 $ 552,179 $ 16.98 $ 552,179 $ 16.98
2004 14,500 237,624 16.39 243,984 16.83
2005 47,069 661,887 14.06 688,817 14.63
2006 10,500 163,584 15.58 175,044 16.67
2007 10,350 128,880 12.45 158,400 15.30
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 - $ - $ - $ - $ -
2004 40,000 424,836 10.62 434,436 10.86
2005 - - - - -
2006 - - - - -
2007 20,000 235,932 11.80 260,859 13.04
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
2003 26,144 $ 936,065 $ 35.80 $ 936,065 $ 35.80
2004 32,674 1,190,976 36.45 1,208,976 37.00
2005 23,012 722,948 31.42 743,964 32.33
2006 18,043 588,446 32.61 595,575 33.01
2007 22,973 992,584 43.21 1,077,591 46.91
2008 24,937 955,173 38.30 1,008,375 40.44
2009 35,048 1,201,172 34.27 1,287,910 36.75
2010 30,749 1,090,426 35.46 1,261,416 41.02
2011 3,474 135,096 38.89 168,024 48.37
2012 35,018 1,577,977 45.06 1,858,625 53.08
Thereafter 9,279 567,998 61.21 662,484 71.40
</Table>
35
<Page>
IN-SERVICE GREATER SAN FRANCISCO PROPERTIES
- --------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS - GREATER SAN FRANCISCO
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 48,331 1,596,821 33.04 1,669,945 34.55
Q3 2003 22,043 719,111 32.62 719,111 32.62
Q4 2003 283,343 10,763,653 37.99 10,769,144 38.01
--------- ------------- ------- -------------- -------
Total 2003 353,717 $ 13,079,585 $ 36.98 $ 13,158,200 37.20
========= ============= ======= ============== =======
Q1 2004 35,049 1,868,897 53.32 1,885,155 53.79
Q2 2004 147,317 6,265,281 42.53 6,268,653 42.55
Q3 2004 240,734 11,354,635 47.17 11,164,947 46.38
Q4 2004 142,073 6,281,110 44.21 6,304,313 44.37
--------- ------------- ------- -------------- -------
Total 2004 565,173 $ 25,769,922 $ 45.60 $ 25,623,068 $ 45.34
========= ============= ======= ============== =======
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 9,265 183,068 19.76 183,068 19.76
Q3 2003 17,047 258,408 15.16 258,408 15.16
Q4 2003 6,208 110,703 17.83 110,703 17.83
--------- ------------- ------- -------------- -------
Total 2003 32,520 $ 552,179 $ 16.98 $ 552,179 $ 16.98
========= ============= ======= ============== =======
Q1 2004 - $ - $ - - $ -
Q2 2004 5,000 77,940 15.59 80,040 16.01
Q3 2004 5,500 102,936 18.72 105,576 19.20
Q4 2004 4,000 56,748 14.19 58,368 14.59
--------- ------------- ------- -------------- -------
Total 2004 14,500 $ 237,624 $ 16.39 $ 243,984 $ 16.83
========= ============= ======= ============== =======
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
--------- ------------- ------- -------------- -------
Total 2003 - $ - $ - $ - -
========= ============= ======= ============== =======
Q1 2004 - - - - -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 40,000 424,836 10.62 434,436 10.86
--------- ------------- ------- -------------- -------
Total 2004 40,000 $ 424,836 $ 10.62 $ 434,436 $ 10.86
========= ============= ======= ============== =======
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 6,304 339,060 53.78 339,060 53.78
Q3 2003 - - - - -
Q4 2003 19,840 597,005 30.09 597,005 30.09
--------- ------------- ------- -------------- -------
Total 2003 26,144 $ 936,065 $ 35.80 $ 936,065 $ 35.80
========= ============= ======= ============== =======
Q1 2004 16,598 $620,294.52 $ 37.37 620,295 $ 37.37
Q2 2004 - - - - -
Q3 2004 4,982 212,304 42.61 212,304 42.61
Q4 2004 11,094 358,378 32.30 376,378 33.93
--------- ------------- ------- -------------- -------
Total 2004 32,674 $ 1,190,976 $ 36.45 $ 1,208,976 $ 37.00
========= ============= ======= ============== =======
</Table>
36
<Page>
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
- -------------------------------------------------------------------------------
LEASE EXPIRATIONS - MIDTOWN MANHATTAN
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- -------
2003 73,300 $ 4,037,832 $ 55.09 $ 4,037,832 $ 55.09
2004 164,723 9,617,761 58.39 9,632,785 58.48
2005 110,791 7,474,863 67.47 7,513,787 67.82
2006 481,316 30,957,905 64.32 31,391,517 65.22
2007 182,649 10,909,717 59.73 11,012,612 60.29
2008 462,395 26,948,656 58.28 28,368,522 61.35
2009 259,553 14,502,653 55.88 17,075,638 65.79
2010 287,774 18,957,973 65.88 20,024,751 69.58
2011 363,724 21,211,117 58.32 24,578,487 67.57
2012 891,075 54,043,460 60.65 55,103,779 61.84
Thereafter 3,006,625 176,622,252 58.74 213,692,730 71.07
<Caption>
OFFICE/TECHNICAL
-------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
<Table>
<Caption>
INDUSTRIAL
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
------------- ------------------ ------------------ ------ -------------------- ------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
----------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ----------------- ------------------ -------- -------------------- --------
2003 1,956 $ 261,210 $ 133.54 $ 261,210 $ 133.54
2004 1,650 184,030 111.53 186,824 113.23
2005 1,514 271,491 179.32 291,602 192.60
2006 15,225 647,835 42.55 663,446 43.58
2007 826 183,205 221.80 199,437 241.45
2008 3,232 149,334 46.20 165,876 51.32
2009 - - - - -
2010 5,030 328,996 65.41 406,496 80.81
2011 14,995 1,305,431 87.06 1,565,284 104.39
2012 5,639 621,329 110.18 818,298 145.11
Thereafter 152,056 13,311,187 87.54 17,415,052 114.53
</Table>
37
<Page>
IN-SERVICE MIDTOWN MANHATTAN PROPERTIES
- -------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS - MIDTOWN MANHATTAN
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
----------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 43,695 2,425,560 55.51 2,425,560 55.51
Q3 2003 4,106 231,903 56.48 231,903 56.48
Q4 2003 25,499 1,380,369 54.13 1,380,369 54.13
------------------ ------------------ -------- -------------------- --------
Total 2003 73,300 $ 4,037,832 $ 55.09 $ 4,037,832 $ 55.09
================== ================== ======== ==================== ========
Q1 2004 - $ - - $ - -
Q2 2004 53,473 4,145,985 77.53 4,145,985 77.53
Q3 2004 - - - - -
Q4 2004 111,250 5,471,776 49.18 5,486,800 49.32
------------------ ------------------ -------- -------------------- --------
Total 2004 164,723 $ 9,617,761 $ 58.39 $ 9,632,785 $ 58.48
================== ================== ======== ==================== ========
<Caption>
OFFICE/TECHNICAL
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
------------------ ------------------ ------ -------------------- ------
Total 2003 - $ - $ - $ - $ -
================== ================== ====== ==================== ======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
------------------ ------------------ ------ -------------------- ------
Total 2004 - $ - $ - $ - $ -
================== ================== ====== ==================== ======
</Table>
<Table>
<Caption>
INDUSTRIAL
-------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- --------------- ------------------- -------------------- -------- ---------------------- ---------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
------------------- -------------------- -------- ---------------------- ---------
Total 2003 - $ - $ - $ - $ -
=================== ==================== ======== ====================== =========
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
------------------- -------------------- -------- ---------------------- ---------
Total 2004 - $ - $ - $ - $ -
=================== ==================== ======== ====================== =========
<Caption>
RETAIL
------------------------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASE EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- -------------- ---------------- ------------------ ------------------ ------------ -------------------- ----------
Q1 2003 - - $ - $ - $ - $ -
Q2 2003 - - - - - -
Q3 2003 - - - - - -
Q4 2003 - 1,956 261,210 133.54 261,210 133.54
---------------- ------------------ ------------------ ------------ -------------------- ----------
Total 2003 - 1,956 $ 261,210 $ 133.54 $ 261,210 $133.54
================ ================== ================== ============ ==================== ==========
Q1 2004 - - $ - $ - $ - $ -
Q2 2004 - 350 47,161 134.75 49,955 142.73
Q3 2004 - - - - - -
Q4 2004 - 1,300 136,869 105.28 136,869 105.28
---------------- ------------------ ------------------ ------------ -------------------- ----------
Total 2004 - 1,650 $ 184,030 $ 111.53 $ 186,824 $113.23
================ ================== ================== ============ ==================== ==========
</Table>
38
<Page>
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
- -------------------------------------------------------------------------------
LEASE EXPIRATIONS - PRINCETON/EAST BRUNSWICK
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 90,814 $ 2,543,625 $ 28.01 $ 2,543,625 $ 28.01
2004 420,341 12,983,843 30.89 12,983,843 30.89
2005 227,213 7,131,373 31.39 7,206,707 31.72
2006 87,691 2,970,070 33.87 3,120,535 35.59
2007 503,911 14,483,270 28.74 15,638,390 31.03
2008 - - - - -
2009 161,514 5,198,541 32.19 5,812,786 35.99
2010 154,917 5,106,368 32.96 5,603,900 36.17
2011 254,941 7,770,051 30.48 8,611,534 33.78
2012 - - - - -
Thereafter 281,175 8,416,748 29.93 9,323,763 33.16
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 - $ - $ - $ - $ -
2004 2,904 48,000 16.53 48,000 16.53
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
39
<Page>
IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES
- -------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS - PRINCETON/EAST BRUNSWICK
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 2,242 62,776 28.00 62,776 28.00
Q3 2003 11,302 315,432 27.91 315,432 27.91
Q4 2003 77,270 2,165,418 28.02 2,165,418 28.02
---------- ------------ ------- ------------ -------
Total 2003 90,814 $ 2,543,625 $ 28.01 $ 2,543,625 $ 28.01
========== ============ ======= ============ =======
Q1 2004 15,570 $ 463,724 $ 29.78 $ 463,724 $ 29.78
Q2 2004 54,636 1,536,832 28.13 1,536,832 28.13
Q3 2004 128,102 3,918,762 30.59 3,918,762 30.59
Q4 2004 222,033 7,064,525 31.82 7,064,525 31.82
---------- ------------ ------- ------------ -------
Total 2004 420,341 $ 12,983,843 $ 30.89 $ 12,983,843 $ 30.89
========== ============ ======= ============ =======
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
---------- ----------- ------- ----------- -------
Total 2003 - $ - $ - $ - $ -
========== =========== ======= =========== =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
---------- ----------- ------- ----------- -------
Total 2004 - $ - $ - $ - $ -
========== =========== ======= =========== =======
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
---------- ------------ ------- ------------ -------
Total 2003 - $ - $ - $ - $ -
========== ============ ======= ============ =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
---------- ------------ ------- ------------ -------
Total 2004 - $ - $ - $ - $ -
========== ============ ======= ============ =======
<Caption>
RETAIL
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- --------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
---------- ----------- ------- ----------- -------
Total 2003 - $ - $ - $ - $ -
========== =========== ======= =========== =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 2,904 48,000 16.53 48,000 16.53
---------- ----------- ------- ----------- -------
Total 2004 2,904 $ 48,000 $ 16.53 $ 48,000 $ 16.53
========== =========== ======= =========== =======
</Table>
40
<Page>
IN-SERVICE OTHER PROPERTIES
- -------------------------------------------------------------------------------
LEASE EXPIRATIONS
OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA)
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 115,753 $ 2,615,940 $ 22.60 $ 2,632,436 $ 22.74
2004 78,408 1,799,155 22.95 1,837,499 23.44
2005 399,159 10,044,496 25.16 10,379,620 26.00
2006 623,549 17,765,031 28.49 18,251,744 29.27
2007 89,093 2,816,407 31.61 2,904,144 32.60
2008 5,398 152,500 28.25 156,830 29.05
2009 31,164 752,492 24.15 867,509 27.84
2010 28,840 575,540 19.96 693,372 24.04
2011 4,618 122,066 26.43 139,614 30.23
2012 30,566 955,188 31.25 1,219,278 39.89
Thereafter - - - - -
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 $ - $ - $ - $ - $ -
2004 161,000 771,048 4.79 771,048 4.79
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
RETAIL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- ---------
2003 1,171 $ 8,721 $ 7.45 $ 8,721 $ 7.45
2004 2,183 62,856 28.79 62,856 28.79
2005 5,296 239,262 45.18 253,107 47.79
2006 3,336 147,589 44.24 147,589 44.24
2007 6,700 232,876 34.76 232,876 34.76
2008 3,561 77,679 21.81 90,705 25.47
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter 6,532 228,676 35.01 243,830 37.33
</Table>
41
<Page>
IN-SERVICE OTHER PROPERTIES
- --------------------------------------------------------------------------------
QUARTERLY LEASE EXPIRATIONS
- --------------------------------------------------------------------------------
OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA)
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- -------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 13,705 324,980 23.71 324,980 23.71
Q3 2003 23,938 517,801 21.63 528,997 22.10
Q4 2003 78,110 1,773,159 22.70 1,778,459 22.77
------------------ ------------------ ------- -------------------- -------
Total 2003 115,753 $ 2,615,940 $ 22.60 $ 2,632,436 $ 22.74
================== ================== ======= ==================== =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 9,483 284,813 30.03 292,859 30.88
Q3 2004 66,935 1,451,075 21.68 1,479,528 22.10
Q4 2004 1,990 63,268 31.79 65,113 32.72
------------------ ------------------ ------- -------------------- -------
Total 2004 78,408 $ 1,799,155 $ 22.95 $ 1,837,499 $ 23.44
================== ================== ======= ==================== =======
<Caption>
OFFICE/TECHNICAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- -------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
------------------ ------------------ ------- -------------------- -------
Total 2003 - $ - $ - $ - $ -
================== ================== ======= ==================== =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
------------------ ------------------ ------- -------------------- -------
Total 2004 - $ - $ - $ - $ -
================== ================== ======= ==================== =======
</Table>
<Table>
<Caption>
INDUSTRIAL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- -------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 - - - - -
------------------ ------------------ ------- -------------------- -------
Total 2003 - $ - $ - $ - $ -
================== ================== ======= ==================== =======
Q1 2004 - $ - $ - $ - $ -
Q2 2004 161,000 771,048 4.79 771,048 4.79
Q3 2004 - - - - -
Q4 2004 - - - - -
------------------ ------------------ ------- -------------------- -------
Total 2004 161,000 $ 771,048 $ 4.79 $ 771,048 $ 4.79
================== ================== ======= ==================== =======
<Caption>
RETAIL
--------------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------- -------------------- -------
Q1 2003 - $ - $ - $ - $ -
Q2 2003 - - - - -
Q3 2003 - - - - -
Q4 2003 1,171 8,721.00 7.45 8,721.00 7.45
------------------ ------------------ ------- -------------------- -------
Total 2003 1,171 $ 8,721.00 $ 7.45 $ 8,721.00 $ 7.45
================== ================== ======= ==================== =======
Q1 2004 2,183 $ 62,855.52 $ 28.79 $ 62,855.52 $ 28.79
Q2 2004 - - - - -
Q3 2004 - - - - -
Q4 2004 - - - - -
------------------ ------------------ ------- -------------------- -------
Total 2004 2,183 $ 62,855.52 $ 28.79 $ 62,855.52 $ 28.79
================== ================== ======= ==================== =======
</Table>
42
<Page>
CBD PROPERTIES
- ------------------------------------------------------------------------------
LEASE EXPIRATIONS
<Table>
<Caption>
GREATER BOSTON
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 60,427 $ 4,533,654 $ 75.03 $ 4,943,394 $ 81.81
2004 305,918 15,391,045 50.31 15,698,065 51.31
2005 600,543 26,663,222 44.40 27,212,539 45.31
2006 175,672 8,600,268 48.96 8,743,987 49.77
2007 168,428 8,779,092 52.12 9,033,905 53.64
2008 73,429 2,755,850 37.53 2,940,735 40.05
2009 692,984 24,850,966 35.86 27,911,999 40.28
2010 151,710 6,379,849 42.05 7,125,834 46.97
2011 434,991 21,828,532 50.18 26,039,335 59.86
2012 308,360 13,808,689 44.78 14,711,433 47.71
Thereafter 830,454 30,159,559 36.32 37,931,263 45.68
<Caption>
GREATER WASHINGTON
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 25,528 $ 926,408 $36.29 $ 937,586 $ 36.73
2004 144,043 6,003,093 41.68 6,078,504 42.20
2005 203,504 8,054,802 39.58 8,508,706 41.81
2006 32,550 1,270,384 39.03 1,341,656 41.22
2007 275,177 9,462,942 34.39 9,349,857 33.98
2008 31,917 1,179,830 36.97 1,356,217 42.49
2009 435,116 15,361,362 35.30 16,952,829 38.96
2010 213,929 7,512,919 35.12 11,351,236 53.06
2011 106,022 3,475,437 32.78 4,294,606 40.51
2012 80,350 3,090,428 38.46 3,010,554 37.47
Thereafter 55,969 2,501,937 44.70 3,398,560 60.72
</Table>
<Table>
<Caption>
NEW YORK
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 75,256 $ 4,299,042 $ 57.13 $ 4,299,042 $ 57.13
2004 166,373 9,801,791 58.91 9,819,609 59.02
2005 112,305 7,746,354 68.98 7,805,390 69.50
2006 496,541 31,605,739 63.65 32,054,963 64.56
2007 183,475 11,092,922 60.46 11,212,050 61.11
2008 465,627 27,097,990 58.20 28,534,398 61.28
2009 259,553 14,502,653 55.88 17,075,638 65.79
2010 292,804 19,286,970 65.87 20,431,247 69.78
2011 378,719 22,516,549 59.45 26,143,771 69.03
2012 896,714 54,664,789 60.96 55,922,077 62.36
Thereafter 3,158,681 189,933,439 60.13 231,107,781 73.17
<Caption>
SAN FRANCISCO
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 149,583 $ 6,227,277 $ 41.63 $ 6,300,401 $ 42.12
2004 555,970 25,266,902 45.45 25,109,340 45.16
2005 326,282 14,400,737 44.14 14,365,058 44.03
2006 864,971 41,640,150 48.14 43,086,373 49.81
2007 450,777 21,381,951 47.43 22,131,579 49.10
2008 206,873 8,474,296 40.96 8,999,593 43.50
2009 284,054 12,175,407 42.86 12,909,415 45.45
2010 206,948 11,968,500 57.83 13,949,589 67.41
2011 196,163 18,118,025 92.36 18,643,547 95.04
2012 157,700 6,818,714 43.24 7,614,024 48.28
Thereafter 197,233 8,258,555 41.87 8,722,435 44.22
</Table>
<Table>
<Caption>
NEW JERSEY
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
OTHER
-----------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------- -------------------- ----------- ---------------------- ---------
2003 116,924 $ 2,624,661 $ 22.45 $ 2,641,157 $ 22.59
2004 80,591 1,862,011 23.10 1,900,355 23.58
2005 404,455 10,283,758 25.43 10,632,726 26.29
2006 626,885 17,912,620 28.57 18,399,333 29.35
2007 95,793 3,049,284 31.83 3,137,020 32.75
2008 8,959 230,179 25.69 247,535 27.63
2009 31,164 752,492 24.15 867,509 27.84
2010 28,840 575,540 19.96 693,372 24.04
2011 4,618 122,066 26.43 139,614 30.23
2012 30,566 955,188 31.25 1,219,278 39.89
Thereafter 6,532 228,676 35.01 243,830 37.33
</Table>
43
<Page>
SUBURBAN PROPERTIES
- ------------------------------------------------------------------------------
LEASE EXPIRATIONS
<Table>
<Caption>
GREATER BOSTON
--------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
2003 300,192 $ 6,362,375 $21.19 $ 7,431,105 $24.75
2004 304,763 9,905,600 32.50 9,962,860 32.69
2005 319,398 10,066,164 31.52 10,173,782 31.85
2006 642,834 15,796,039 24.57 16,344,011 25.42
2007 452,548 12,104,632 26.75 12,930,976 28.57
2008 258,876 8,353,491 32.27 8,765,030 33.86
2009 283,195 10,751,425 37.96 11,431,548 40.37
2010 84,079 1,964,015 23.36 2,132,780 25.37
2011 419,343 8,778,505 20.93 9,953,349 23.74
2012 424,413 11,706,114 27.58 13,412,645 31.60
Thereafter 194,224 7,146,216 36.79 8,597,653 44.27
<Caption>
GREATER WASHINGTON
------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- -------
2003 165,928 $ 3,625,788 $21.85 $ 3,625,788 $21.85
2004 150,102 3,652,536 24.33 3,703,536 24.67
2005 370,927 10,356,133 27.92 10,935,977 29.48
2006 432,370 11,656,543 26.96 12,751,413 29.49
2007 532,448 15,081,428 28.32 15,582,613 29.27
2008 437,895 13,074,033 29.86 13,745,853 31.39
2009 277,509 9,151,512 32.98 9,279,590 33.44
2010 378,096 13,434,890 35.53 15,485,519 40.96
2011 1,024,546 30,494,323 29.76 35,824,885 34.97
2012 240,152 7,604,752 31.67 10,494,944 43.70
Thereafter 870,414 21,784,315 25.03 27,285,444 31.35
</Table>
<Table>
<Caption>
NEW YORK
------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ -------- -------------------- -------
2003 - $ - $ - $ - $ -
2004 - - - - -
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
<Caption>
SAN FRANCISCO
----------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
2003 262,798 $ 8,340,552 $31.74 $ 8,346,043 $31.76
2004 96,377 2,356,456 24.45 2,401,125 24.91
2005 106,562 3,495,494 32.80 3,791,766 35.58
2006 49,187 2,446,577 49.74 2,749,304 55.89
2007 42,217 840,024 19.90 909,544 21.54
2008 24,317 646,069 26.57 621,011 25.54
2009 5,256 185,043 35.21 214,687 40.85
2010 7,724 168,000 21.75 231,720 30.00
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
<Table>
<Caption>
NEW JERSEY
----------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
2003 90,814 $ 2,543,625 $28.01 $ 2,543,625 $28.01
2004 423,245 13,031,843 30.79 13,031,843 30.79
2005 227,213 7,131,373 31.39 7,206,707 31.72
2006 87,691 2,970,070 33.87 3,120,535 35.59
2007 503,911 14,483,270 28.74 15,638,390 31.03
2008 - - - - -
2009 161,514 5,198,541 32.19 5,812,786 35.99
2010 154,917 5,106,368 32.96 5,603,900 36.17
2011 254,941 7,770,051 30.48 8,611,534 33.78
2012 - - - - -
Thereafter 281,175 8,416,748 29.93 9,323,763 33.16
<Caption>
OTHER
------------------------------------------------------------------------------------
ANNUALIZED
RENTABLE SQUARE CURRENT ANNUALIZED PER REVENUES UNDER PER
YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER SQUARE EXPIRING LEASES SQUARE
EXPIRATION EXPIRING LEASES EXPIRING LEASES FOOT WITH FUTURE STEP-UPS FOOT
- ------------- ------------------ ------------------ ------ -------------------- ------
2003 - $ - $ - $ - $ -
2004 161,000 771,048 4.79 771,048 4.79
2005 - - - - -
2006 - - - - -
2007 - - - - -
2008 - - - - -
2009 - - - - -
2010 - - - - -
2011 - - - - -
2012 - - - - -
Thereafter - - - - -
</Table>
44
<Page>
HOTEL PERFORMANCE
- --------------------------------------------------------------------------------
LONG WHARF MARRIOTT - BOSTON
- --------------------------------------------------------------------------------
<Table>
<Caption>
FIRST QUARTER FIRST QUARTER PERCENT
2003 2002 CHANGE
------------- ------------- -------
<s>
Occupancy 71.8% 76.1% -5.7%
Average Daily Rate $166.87 $181.80 -8.2%
REVPAR $119.87 $138.29 -13.3%
Hotel Revenues Less Hotel Operating
Expenses (in thousands) $ 929 $ 1,320 -29.6%
</Table>
CAMBRIDGE CENTER MARRIOTT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FIRST QUARTER FIRST QUARTER PERCENT
2003 2002 CHANGE
------------- ------------- -------
<s>
Occupancy 64.1% 65.7% -2.4%
Average Daily Rate $147.18 $160.43 -8.3%
REVPAR $ 94.39 $105.35 -10.4%
Hotel Revenues Less Hotel Operating
Expenses (in thousands) $ 715 $ 1,150 -37.8%
</Table>
RESIDENCE INN BY MARRIOTT
- --------------------------------------------------------------------------------
<Table>
<Caption>
FIRST QUARTER FIRST QUARTER PERCENT
2003 2002 CHANGE
------------- ------------- -------
<s>
Occupancy 69.5% 80.3% -13.4%
Average Daily Rate $117.25 $125.84 -6.8%
REVPAR $ 81.45 $101.01 -19.4%
Hotel Revenues Less Hotel Operating
Expenses (in thousands) $ 436 $ 582 -25.1%
</Table>
TOTAL HOTEL PERFORMANCE
- --------------------------------------------------------------------------------
<Table>
<Caption>
FIRST QUARTER FIRST QUARTER PERCENT
2003 2002 CHANGE
------------- ------------- -------
<s>
Occupancy 68.2% 72.7% -6.2%
Average Daily Rate $148.41 $161.33 -8.0%
REVPAR $101.39 $117.00 -13.3%
Hotel Revenues Less Hotel Operating
Expenses (in thousands) $ 2,080 $ 3,052 -31.8%
</Table>
45
<Page>
SAME PROPERTY PERFORMANCE
- ------------------------------------------------------------------------------
OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES
- ------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE OFFICE/TECHNICAL INDUSTRIAL HOTEL TOTAL
------------- ------------------- ------------ ----------- ---------------
Number of Properties 92 26 4 3 125
Square feet 24,067,474 1,499,391 373,009 937,874 26,877,748
Percent of in-service properties 83.8% 90.4% 100.0% 100.0% 84.8%
Occupancy @ 3/31/02 94.5% 97.0% 100.0% - 94.7%
Occupancy @ 3/31/03 94.0% 92.0% 89.0% - 93.9%
Percent change from 1st quarter 2003
over 1st quarter 2002:(1)
Rental revenue 3.2% -3.3% 2.4% -24.1% 2.5%
Operating expenses and real
estate taxes 6.9% 39.1% 30.7% -18.4% 6.9%
Rental revenue less operating
expenses and real estate taxes 1.4% -13.7% -6.2% -26.7% 0.3%
Rental revenue less operating
expenses and real estate taxes
- without hotels 0.9%
Rental revenue - cash basis 2.1% -3.1% 3.8% -24.1% 1.5%
Rental revenue less
operating expenses and real estate
taxes - cash basis -0.3% -13.7% -4.1% -26.7% -1.3%
Rental revenue less operating expenses
and real estate taxes - cash basis
- without hotels -0.7%
</Table>
SAME PROPERTY LEASE ANALYSIS - QUARTER ENDED MARCH 31, 2003
- ------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL
------ ---------------- ---------- -----
Vacant space available @1/01/03 (sf) 1,285,555 113,334 - 1,398,889
Square footage of leases expiring or
terminated 01/01/03-03/31/03 518,367 36,139 41,168 595,674
------------- -------------- ------------ -----------
Total space for lease (sf) 1,803,922 149,473 41,168 1,994,563
============= ============== ============ ===========
New tenants (sf) 285,519 2,700 - 288,219
Renewals (sf) 216,028 2,000 218,028
------------- -------------- -----------
Total space leased (sf) 501,547 4,700 - 506,247
============= ============== ============ ===========
Space available @ 3/31/03 (sf) 1,302,375 144,773 41,168 1,488,316
============= ============== ============ ===========
Net (increase)/decrease in
available space (sf) (16,820) (31,439) (41,168) (89,427)
Average lease term (months) 122 33 - 121
2nd generation TI/Comm PSF $ 8.34 $ 0.86 $ - $ 8.27
Increase (decrease) in 2nd
generation net rents (2) 16.4% -14.0% - 16.2%
</Table>
(1) See page 47 for a quantitative reconciliation.
(2) 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.)
46
<Page>
RECONCILIATION TO SAME PROPERTY PERFORMANCE
- -------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE
--------------------------------------------------------
FOR THE THREE MONTHS ENDED
-------------------------- $ %
31-MAR-03 31-DEC-02 CHANGE CHANGE
--------- --------- ------ ------
Rental Revenue 225,675 217,451
Less Termination Income 1,761 487
------- -------
Rental revenue-subtotal 223,914 216,964 6,950 3.2%
Operating expenses and real estate taxes 77,428 72,453 4,975 6.9%
------- ------- ----- ----
Rental revenue less operating expenses
and real estate taxes 146,486 144,511 1,975 1.4%
======= ======= ===== ====
Rental revenue-subtotal 223,914 216,963
Straight Line Rent 4,305 1,878 2,427
------- ------- ----- ----
Rental revenue-cash basis 219,609 215,085 4,524 2.1%
Less:
Operating expenses and real estate taxes 77,428 72,453 4,975 6.9%
------- ------- ----- ----
Rental revenue less operating expenses
and real estate taxes-cash basis 142,181 142,632 (451) -0.3%
======= ======= ===== ====
<Caption>
OFFICE/TECHNICAL
---------------------------------------------------------
FOR THE THREE MONTHS ENDED
-------------------------- $ %
31-MAR-03 31-DEC-02 CHANGE CHANGE
--------- --------- ------ ------
Rental Revenue 5,667 5,862
Less Termination Income -- --
----- -----
Rental revenue-subtotal 5,667 5,862 (195) -3.3%
Operating expenses and real estate taxes 1,597 1,148 449 39.1%
----- ----- --- -----
Rental revenue less operating expenses
and real estate taxes 4,070 4,714 (644) -13.7%
===== ===== === =====
Rental revenue-subtotal 5,667 5,862
Straight Line Rent 110 126 (16)
----- ----- --- -----
Rental revenue-cash basis 5,557 5,736 (179) -3.1%
Less:
Operating expenses and real estate taxes 1,597 1,148 449 39.1%
----- ----- --- -----
Rental revenue less operating expenses
and real estate taxes-cash basis 3,960 4,588 (628) -13.7%
===== ===== === =====
<Caption>
INDUSTRIAL
---------------------------------------------------------------
FOR THE THREE MONTHS ENDED
----------------------------- $ %
31-MAR-03 31-DEC-02 CHANGE CHANGE
--------- --------- ------ ------
Rental Revenue 598 584
Less Termination Income -- --
--- ---
Rental revenue-subtotal 598 584 14 2.4%
Operating expenses and real estate taxes 179 137 42 30.7%
--- --- -- ----
Rental revenue less operating expenses
and real estate taxes 419 447 (28) -6.2%
=== === == ====
Rental revenue-subtotal 598 584
Straight Line Rent (27) (18) (9)
--- --- -- ----
Rental revenue-cash basis 625 602 23 3.8%
Less:
Operating expenses and real estate taxes 179 137 42 30.7%
--- --- -- ----
Rental revenue less operating expenses
and real estate taxes-cash basis 446 465 (19) -4.1%
=== === == ====
</Table>
<Table>
<Caption>
HOTEL
----------------------------------------------------------------
FOR THE THREE MONTHS ENDED
-------------------------------- $ %
31-MAR-03 31-DEC-02 CHANGE CHANGE
--------- --------- ------ ------
Rental Revenue 3,335 4,397
Less Termination Income -- --
----- -----
Rental revenue-subtotal 3,335 4,397 (1,062) -24.1%
Operating expenses and real estate taxes 1,115 1,367 (252) -18.4%
----- ----- ----- -----
Rental revenue less operating expenses
and real estate taxes 2,220 3,030 (810) -26.7%
===== ===== ===== =====
Rental revenue-subtotal 3,335 4,397
Straight Line Rent 6 11 (5)
----- ----- ----- -----
Rental revenue-cash basis 3,329 4,386 (1,057) -24.1%
Less:
Operating expenses and real estate taxes 1,115 1,367 (252) -18.4%
----- ----- ----- -----
Rental revenue less operating expenses
and real estate taxes-cash basis 2,214 3,019 (805) -26.7%
===== ===== ===== =====
<Caption>
TOTAL
---------------------------------------------------------
FOR THE THREE MONTHS ENDED
------------------------------ $ %
31-MAR-03 31-DEC-02 CHANGE CHANGE
--------- --------- ------ ------
Rental Revenue 235,275 228,294
Less Termination Income 1,761 487
------- -------
Rental revenue-subtotal 233,514 227,806 5,708 2.5%
Operating expenses and real estate taxes 80,319 75,105 5,214 6.9%
------- ------- ----- ----
Rental revenue less operating expenses
and real estate taxes 153,195 152,701 494 0.3%
======= ======= ===== ====
Rental revenue-subtotal 233,514 227,806
Straight Line Rent 4,394 1,997 2,397
------- ------- ----- ----
Rental revenue-cash basis 229,120 225,809 3,311 1.5%
Less:
Operating expenses and real estate taxes 80,319 75,105 5,214 6.9%
------- ------- ----- ----
Rental revenue less operating expenses
and real estate taxes-cash basis 148,801 150,704 (1,903) -1.3%
======= ======= ===== ====
</Table>
47
<Page>
PROPERTY PERFORMANCE
ALL IN-SERVICE PROPERTIES - QUARTER ENDED MARCH 31, 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL
---------- ---------------- ---------- ---------
Vacant space available @ 01/01/03 (sf) 1,837,929 113,334 - 1,951,263
Property dispositions (54,141) - - (54,141)
New development sf completed 308,599 - - 308,599
Square footage of leases expiring or
terminated 01/01/03 - 03/31/03 516,856 36,139 41,168 594,163
---------- ---------------- ---------- ---------
Total space for lease (sf) 2,609,243 149,473 41,168 2,799,884
========== ================ ========== =========
New tenants (sf) 439,882 2,700 - 442,582
Renewals (sf) 216,028 2,000 218,028
---------- ---------------- ---------- ---------
Total space leased (sf) 655,910 4,700 - 660,610 (2)
========== ================ ========== =========
Space available @ 03/31/03 (sf) 1,953,333 144,773 41,168 2,139,274
========== ================ ========== =========
Net (increase)/decrease in available space (sf) (115,404) (31,439) (41,168) (188,011)
Average lease term (months) 122 33 - 121
2nd generation TI/Comm PSF $ 8.34 $ 0.86 $ - $ 8.27
Increase (decrease) in 2nd generation net rents (1) 16.4% -14.0% - 16.2%
</Table>
(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) Details of 1st and 2nd Generation Space:
<Table>
<Caption>
TOTAL
1ST GENERATION 2ND GENERATION LEASED
-------------- -------------- --------
Boston 142,763 292,850 435,613
Washington - 43,299 43,299
New York 11,600 18,495 30,095
San Francisco - 99,871 99,871
Princeton - 51,732 51,732
-------------- -------------- --------
154,363 506,247 660,610
============== ============== ========
</Table>
48
<Page>
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
- --------------------------------------------------------------------------------
HISTORICAL CAPITAL EXPENDITURES
(IN THOUSANDS)
<Table>
<Caption>
Q1 2003 2002 2001 2000
-------- --------- ---------- ----------
Recurring capital expenditures $ 1,960 $ 16,674 $ 11,770 $ 11,201
Planned non-recurring capital expenditures
associated with acquisition properties (1) 2,324 31,908 45,052 25,782
Hotel improvements, equipment upgrades
and replacements 405 3,218 9,230 5,697
-------- --------- ---------- ----------
$ 4,689 $ 51,800 $ 66,052 $ 42,680
======== ========= ========== ==========
</Table>
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS (2)
(IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<Table>
<Caption>
Q1 2003 2002 2001 2000
-------- ----------- ---------- ----------
Office
Square feet 501,547 2,122,409 2,394,291 2,913,599
-------- ----------- ---------- ----------
Tenant improvement and lease commissions p.s.f. $ 8.34 $ 20.17 $ 17.47 $ 13.82
-------- ----------- ---------- ----------
Office/Technical
Square feet 4,700 347,321 348,178 694,536
-------- ----------- ---------- ----------
Tenant improvement and lease commissions p.s.f. $ 0.86 $ 1.42 $ 3.13 $ 2.95
-------- ----------- ---------- ----------
Industrial
Square feet - 244,904 - 209,125
-------- ----------- ---------- ----------
Tenant improvement and lease commissions p.s.f. $ - $ 0.62 $ - $ 1.38
-------- ----------- ---------- ----------
Average tenant improvement and lease commission p.s.f. $ 8.27 $ 16.01 $ 15.65 $ 11.16
======== =========== ========== ==========
</Table>
(1) Includes budgeted costs associated with the 18.4 million square feet of
previously disclosed acquisitions.
(2) Based on leases executed during the period.
49
<Page>
VALUE CREATION PIPELINE - ACQUISITIONS/DISPOSITIONS
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
ACQUISITIONS
- --------------------------------------------------------------------------------
<Table>
<Caption>
INITIAL ANTICIPATED
BOOK FUTURE TOTAL CURRENT
PROPERTY DATE ACQUIRED SQUARE FEET INVESTMENT INVESTMENT INVESTMENT LEASED
- -------- ------------- ----------- ---------- ----------- ---------- -------
399 Park Avenue Sep-02 1,677,433 $1,064,000,000 $ 4,000,000 $1,068,000,000 100%
--------- -------------- ----------- -------------- ---
Total Value Creation Pipeline - 1,677,433 $1,064,000,000 $ 4,000,000 $1,068,000,000 100%
Acquisitions ========= ============== =========== ============== ===
</Table>
DISPOSITIONS
- --------------------------------------------------------------------------------
FOR THE PERIOD FROM JANUARY 1, 2002 THROUGH MARCH 31, 2003
<Table>
<Caption>
GROSS
PROPERTY DATE DISPOSED SQUARE FEET SALES PRICE BOOK GAIN(LOSS)
- -------- ------------- ----------- ------------ ---------------
Fullerton Square Mar-02 179,453 $ 22,525,000 $ 7,145,500
7600 Boston Boulevard Mar-02 69,832 8,627,000 5,597,132
7700 Boston Boulevard Mar-02 82,224 16,558,000 6,024,563
7702 Boston Boulevard Mar-02 43,171 8,916,000 2,758,255
681 Gateway - Land Jul-02 N/A 8,000,000 3,278,659
Herndon Lumber Site - Land Jul-02 N/A 5,200,000 1,152,784
Belvidere garage spaces Sep-02 N/A 1,305,000 103,030
Belvidere garage spaces Oct-02 N/A 1,035,000 81,715
One and Two Independence Square Nov-02 917,459 345,000,000 227,791,468
2391 West Winton Avenue Dec-02 220,213 10,800,000 9,288,323
The Candler Building Jan-03 540,706 63,067,000 (292,564)
875 Third Avenue Feb-03 711,901 370,100,000 (1) 90,020,729
2300 N Street Mar-03 289,243 122,000,000 (2) 64,310,972
--------- ------------ ------------
Total Dispositions 3,054,202 $983,133,000 $417,260,566
========= ============ ============
</Table>
(1) Includes $8.8 million of future tenant improvement work credited to buyer at
closing.
(2) Includes $8.0 million of future tenant improvement work credited to
buyer at closing.
50
<Page>
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
INITIAL STABILIZATION # OF INVESTMENT
DEVELOPMENT PROPERTIES OCCUPANCY DATE LOCATION BUILDINGS SQUARE FEET TO DATE
- ---------------------- --------- ------------- -------- --------- ----------- ----------
Shaws Supermarket Q2 2003 Q2 2003 Boston, MA 1 57,235 22,682,556
New Dominion Tech, Building Two Q2 2004 Q2 2004 Herndon, VA 1 257,400 12,454,202
Two Freedom Square (50% ownership) Q3 2002 Q3 2004 Reston, VA 1 423,530 41,427,242
Times Square Tower Q1 2004 Q1 2005 New York, NY 1 1,234,464 399,292,257
901 New York Avenue (25% ownership) Q3 2004 Q3 2005 Washington, D.C. 1 538,463 16,875,314
-- --------- ------------
Total Development Properties 5 2,511,092 $492,731,571
== ========= ============
<Caption>
Anticipated Total Amount Current
Total Construction Drawn at Future Equity Percentage
Development Properties Investment (1) Loan March 31, 2003 Requirement Leased
- ---------------------- -------------- ------------ -------------- ------------- -----------
Shaws Supermarket 24,034,000 24,000,000 21,539,503 -- 100%
New Dominion Tech, Building Two 67,589,000 65,000,000 11,328,662 1,463,460 100%
Two Freedom Square (50% ownership) 49,336,000 (2) 45,000,000 (2) 34,311,649 -- 100%
Times Square Tower 653,500,000 493,500,000 254,378,457 15,086,200 17%
901 New York Avenue (25% ownership) 44,777,000 30,000,000 4,161,878 2,063,564 60%
------------ ------------ ------------ ----------- ---
Total Development Properties $839,236,000 $657,500,000 $325,720,149 $18,613,224 51%
============ ============ ============ =========== ===
</Table>
DEVELOPMENTS PLACED-IN-SERVICE DURING 2003
- --------------------------------------------------------------------------------
<Table>
<Caption>
INITIAL
IN SERVICE STABILIZATION # OF INVESTMENT
CLASS A OFFICE BUILDING DATE DATE LOCATION BUILDINGS SQUARE FEET TO DATE
- ----------------------- ---------- ------------- -------- --------- ----------- ----------
Waltham Weston Corporate Center Q1 2002 Q4 2003 Waltham, MA 1 308,599 69,555,143
-- ------- -----------
Total Developments Placed in Service 1 308,599 $69,555,143
== ======= ===========
<Caption>
TOTAL CONSTRUCTION DRAWN AT FUTURE EQUITY PERCENTAGE
CLASS A OFFICE BUILDING INVESTMENT (1) LOAN MARCH 31, 2003 REQUIREMENT LEASED
- ----------------------- -------------- ------------ -------------- ------------- -----------
Waltham Weston Corporate Center 85,000,000 -- -- 15,444,857 43%
------------ ---- ---- ----------- ---
Total Developments Placed in Service $ 85,000,000 $ -- $ -- $15,444,857 43%
============ ==== ==== =========== ===
</Table>
(1) Includes net revenues during lease-up period and cash component of hedge
contracts.
(2) Represents 50% of the total anticipated project-level investment and
construction loan.
51
<Page>
VALUE CREATION PIPELINE - OWNED LAND PARCELS
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
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
Marlborough, MA 1 50.0 400,000
Weston, MA 1 74.0 350,000
Waltham, MA 1 4.3 202,000
Andover, MA 1 10.0 110,000
Washington, D.C. 1 0.5 170,000
--- ----- ---------
25 365.6 6,483,000
=== ===== =========
</Table>
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
- --------------------------------------------------------------------------------
AS OF MARCH 31, 2003
<Table>
<Caption>
NO. OF DEVELOPABLE
LOCATION PARCELS ACREAGE SQUARE FEET
- -------- ------- ------- ------------
Princeton, NJ (1) 14 149.9 1,900,000
Framingham, MA (2) 1 21.5 300,000
Cambridge, MA (3) 1 2.6 165,000
--- ----- ---------
16 174.0 2,365,000
=== ===== =========
</Table>
(1) $20.00/FAR plus an earnout calculation.
(2) Subject to ground lease.
(3) Prior to January 23, 2004, the cost will be $28.32/SF of land area. Land
area is approximately 108,000 SF.
52
<Page>
DEFINITIONS
- --------------------------------------------------------------------------------
This section contains a brief explanation of certain non-GAAP financial
measures we provide in other sections of this document, and a statement of
the reasons why management believes these measures provide useful information
to investors about the company's financial condition or results of
operations. Additional detail can be found in the company's most recent
annual report on Form 10-K and other documents filed with the SEC from time
to time.
Funds from Operations:
Pursuant to the revised definition of Funds from Operations adopted by the
Board of Governors of the National Association of Real Estate Investment
Trusts ("NAREIT"), we calculate Funds from Operations, or "FFO," by adjusting
net income (loss) (computed in accordance with GAAP), including non-recurring
items), for gains (or losses) from sales of properties, real estate related
depreciation and amortization, and after adjustment for unconsolidated
partnerships and joint ventures. In addition to FFO (as defined by NAREIT),
we also disclose FFO after specific supplemental adjustments. Although our
FFO as adjusted clearly differs from NAREIT's definition of FFO as well that
of other real estate companies, we believe it provides a meaningful
presentation of our operating performance. In addition, we believe that to
further understand our performance, FFO and FFO as adjusted should be
compared with our reported net income and cash flows in accordance with GAAP,
as presented in our consolidated financial statements. Our computation of FFO
may not be comparable to FFO reported by other REITs or real estate companies
that do not define the term in accordance with the current NAREIT definition
or that interpret the current NAREIT definition differently. In addition to
presenting FFO in accordance with the NAREIT definition, we make adjustments
to FFO, as defined by NAREIT, including net derivative losses and early
surrender lease adjustments. FFO does not represent cash generated from
operating activities determined in accordance with GAAP, and should not be
considered as an alternative to net income (determined in accordance with
GAAP) as an indication of our performance, as an alternative to net cash
flows from operating activities (determined in accordance with GAAP), as a
measure of our liquidity, or as an indicator of our ability to make cash
distributions.
Funds Available for Distribution (FAD)
In addition to FFO, we present Funds Available for Distribution (FAD) by (1)
adding to FFO non-real estate depreciation, (2) eliminating the effect of
straight-line rent, and (3) subtracting: recurring capital expenditures;
hotel improvements, equipment upgrades and replacements; and second
generation tenant improvement and leasing commissions. Although our FAD as
adjusted differs from that of other real estate companies, we believe it
provides a meaningful indicator of our ability to fund cash needs and to make
cash distributions to equity owners. In addition, we believe that to further
understand our liquidity, FAD should be compared with our cash flows in
accordance with GAAP, as presented in our consolidated financial statements.
Our computation of FAD may not be comparable to FAD reported by other REITs
or real estate companies and FAD does not represent cash generated from
operating activities determined in accordance with GAAP, and should not be
considered as an alternative to net income (determined in accordance with
GAAP) as an indication of our performance, as an alternative to net cash
flows from operating activities (determined in accordance with GAAP), as a
measure of our liquidity.
Debt to Total Market Capitalization Ratio
Debt to total market capitalization ratio, defined as total consolidated debt
as a percentage of the market value of our outstanding equity securities plus
our total consolidated debt, is a measure of leverage commonly used by
analysts in the REIT sector. Total market capitalization is the sum of our
total indebtedness outstanding on a consolidated basis (excluding
unconsolidated joint venture debt) and the market value of our outstanding
equity securities calculated using the closing stock price per share of
common stock of the company multiplied by the sum of (i) the actual aggregate
number of outstanding common partnership units of our operating partnership
(including common partnership units held by the company) and (ii) the number
of common partnership units issuable upon conversion of preferred partnership
units of our operating partnership. We are presenting this ratio because our
degree of leverage could affect our ability to obtain additional financing
for working capital, capital expenditures, acquisitions, development or other
general corporate purposes. Investors should understand that our debt to
market capitalization ratio is in part a function of the market price of the
common stock of Boston Properties, Inc., and as such will fluctuate with
changes in such price and does not necessarily reflect our capacity to incur
additional debt to finance our activities or our ability to manage our
existing debt obligations. However, for a company like ours, whose assets are
primarily income-producing real estate, the debt to total market
capitalization ratio may provide investors with an alternate indication of
leverage, so long as it is evaluated along with the ratio of indebtedness to
other measures of asset value used by financial analysts and other financial
ratios, as well as the various components of our outstanding indebtedness.
If you would like to receive this document in a different electronic format,
please call investor relations at 617-236-3322.
53