Equibles

8-K

BXP, Inc. (BXP)

8-K 2021-07-27 For: 2021-07-27
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 27, 2021

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

Boston Properties, Inc. Delaware 1-13087 04-2473675
(State or Other Jurisdiction<br>of Incorporation) (Commission File Number) (IRS Employer<br>Identification No.)
Boston Properties Limited Partnership Delaware 0-50209 04-3372948
(State or Other Jurisdiction<br>of Incorporation) (Commission File Number) (IRS Employer<br>Identification No.)

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrants under any of the following provisions (see General Instruction A.2. below):

☐    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐    Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐    Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐    Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Registrant Title of each class Trading Symbol(s) Name of each exchange on which registered
Boston Properties, Inc. Common Stock, par value $0.01 per share BXP New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

The information in this Item 2.02 - “Results of Operations and Financial Condition” is being furnished. Such information, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

On July 27, 2021, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the second quarter of 2021. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter endedJune30, 2021.
*99.2 Press release datedJuly27, 2021.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

BOSTON PROPERTIES, INC.
By: /s/    MICHAEL E. LABELLE
Michael E. LaBelle
Executive Vice President, Chief Financial Officer
and Treasurer
BOSTON PROPERTIES LIMITED PARTNERSHIP
By: Boston Properties, Inc., its General Partner
By: /s/    MICHAEL E. LABELLE
Michael E. LaBelle
Executive Vice President, Chief Financial Officer
and Treasurer

Date: July 27, 2021

Document

Exhibit 99.1

imagea.jpg

image31.jpg

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2021

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s complete portfolio totals 51.5 million square feet and 197 properties, including nine properties under construction/redevelopment, and it consists of 178 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned nine consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; the speed, effectiveness and distribution of vaccines, whether new or existing actions or measures continue to impact the ability of our residential tenants to generate sufficient income to pay, or make them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; and the effectiveness or lack of effectiveness of government relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 53.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 57.

GENERAL INFORMATION

Corporate Headquarters Trading Symbol Investor Relations Inquiries
800 Boylston Street BXP Boston Properties, Inc. Inquiries should be directed to
Suite 1900 800 Boylston Street, Suite 1900 Sara Buda
Boston, MA 02199 Stock Exchange Listing Boston, MA 02199 Vice President, Investor Relations
www.bxp.com New York Stock Exchange investors.bxp.com at 617.236.3429 or
(t) 617.236.3300 investorrelations@bxp.com sbuda@bxp.com
(f) 617.236.3311 (t) 617.236.3429
Michael E. LaBelle
Executive Vice President, Chief Financial Officer
at 617.236.3352 or
mlabelle@bxp.com

(Cover photo: Colorado Center, Santa Monica, CA)

Q2 2021
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 4
Consolidated Income Statements 5
Funds From Operations (FFO) 6
Funds Available for Distribution (FAD) 7
Net Operating Income (NOI) 8
Same Property Net Operating Income (NOI) by Reportable Segment 10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 12
Acquisitions and Dispositions 13
DEVELOPMENT ACTIVITY
Construction in Progress 14
Land Parcels and Purchase Options 15
LEASING ACTIVITY
Leasing Activity 16
PROPERTY STATISTICS
Portfolio Overview 17
Residential and Hotel Performance 18
In-Service Property Listing 20
Top 20 Tenants Listing and Portfolio Tenant Diversification 24
Occupancy by Location 25
DEBT AND CAPITALIZATION
Capital Structure 26
Debt Analysis 27
Senior Unsecured Debt Covenant Compliance Ratios 28
Net Debt to EBITDAre 29
Debt Ratios 30
JOINT VENTURES
Consolidated Joint Ventures 31
Unconsolidated Joint Ventures 34
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 37
Boston 38
Los Angeles 40
New York 42
San Francisco 44
Washington, DC 46
CBD 48
Suburban 50
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 52
Definitions 53
Reconciliations 57
Consolidated Income Statement - Prior Year 65
Funds From Operations (FFO) - Prior Year 66
Q2 2021
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Company profile

SNAPSHOT

(as of June 30, 2021)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 197
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 51.5 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 173.7 million
Closing Price, at the end of the quarter $114.59 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 3.4%
Consolidated Market Capitalization 2 $32.4 billion
BXP’s Share of Market Capitalization 2, 3 $32.4 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the key tenets of our business strategy are to:

•maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC, and the expected addition of Seattle in the third quarter of 2021;

•invest in the highest quality buildings (primarily office) with unique amenities and desirable locations that are able to maintain high occupancy rates and achieve premium rental rates through economic cycles;

•maintain scale and a full-service real estate capability (leasing, development, construction and property management) in our markets to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle, (3) provide superior service to our tenants and (4) develop and manage our assets in the most sustainable manner possible;

•be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing new properties in times of growth and selling assets at attractive prices, resulting in continuous portfolio refreshment;

•ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make new investments at opportune points in time; and

•foster a culture and reputation of integrity, excellence and purposefulness, making us the employer of choice for talented real estate professionals, the landlord and developer of choice for our customers, as well as the counterparty of choice for real estate industry participants.

MANAGEMENT

Board of Directors Management
Joel I. Klein Chairman of the Board Owen D. Thomas Chief Executive Officer
Owen D. Thomas Chief Executive Officer Douglas T. Linde President
Douglas T. Linde President Raymond A. Ritchey Senior Executive Vice President
Kelly A. Ayotte Chair of Compensation Committee Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan Bryan J. Koop Executive Vice President, Boston Region
Karen E. Dykstra John F. Powers Executive Vice President, New York Region
Carol B. Einiger Robert E. Pester Executive Vice President, San Francisco Region
Diane J. Hoskins Chair of Sustainability Committee Jonathan D. Lange Senior Vice President, Los Angeles Region
Matthew J. Lustig Chair of Nominating & Corporate Governance Committee Peter V. Otteni Senior Vice President, Co-Head of the Washington, DC Region
John J. Stroman Senior Vice President, Co-Head of the Washington, DC Region
David A. Twardock Chair of Audit Committee Frank D. Burt Senior Vice President and Chief Legal Officer
William H. Walton, III Donna D. Garesche Senior Vice President and Chief Human Resources Officer
Michael R. Walsh Senior Vice President and Chief Accounting Officer
James J. Whalen Senior Vice President and Chief Information & Technology Officer

____________________

1Common units and LTIP units are units of limited partnership interest in Boston Properties Limited Partnership, the entity through which the Company conducts substantially all of its business.

2For additional detail, see page 26.

3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

Q2 2021
Guidance

The Company’s guidance for the third quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on July 27, 2021 and those referenced during the Company’s conference call scheduled for July 28, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatement of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains and losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 55. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Third Quarter 2021
Low High
Projected EPS (diluted) $ 1.28 — $ 1.30
Add:
Projected Company share of real estate depreciation and amortization 1.05 — 1.05
Projected Company share of (gains)/losses on sales of real estate (0.65) — (0.65)
Projected FFO per share (diluted) $ 1.68 — $ 1.70
Q2 2021
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Financial highlights

(unaudited and in thousands, except ratios and per share amounts)

Three Months Ended
30-Jun-21 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.71 $ 0.59
FFO attributable to Boston Properties, Inc. common shareholders 1 $ 268,642 $ 243,803
Diluted FFO per share 1 $ 1.72 $ 1.56
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 178,341 $ 181,922
Selected items:
Revenue $ 713,807 $ 713,695
Recoveries from tenants $ 100,433 $ 105,866
Service income from tenants $ 1,516 $ 1,037
BXP’s Share of revenue 3 $ 683,273 $ 680,822
BXP’s Share of straight-line rent 3, 4 $ 30,855 $ 13,601
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3 $ (582) $ (693)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3 $ (319) $ 200
BXP’s Share of fair value lease revenue 3, 5 $ 1,193 $ 1,206
BXP’s Share of termination income 3 $ 6,067 $ 4,275
Ground rent expense $ 3,261 $ 3,449
Capitalized interest $ 13,014 $ 12,032
Capitalized wages $ 3,459 $ 3,307
Income (loss) from unconsolidated joint ventures $ (1,373) $ 5,225
BXP’s share of FFO from unconsolidated joint ventures 6 $ 13,977 $ 13,380
Net income attributable to noncontrolling interests in property partnerships $ 17,164 $ 16,467
FFO attributable to noncontrolling interests in property partnerships 7 $ 34,277 $ 32,924
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 2,207 $ 3,156
Below-market rents (included within Other Liabilities) $ 26,271 $ 25,539
Accrued rental income liability (included within Other Liabilities) $ 136,085 $ 138,761
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8 3.84 3.95
Interest Coverage Ratio (including capitalized interest) 8 3.37 3.52
Fixed Charge Coverage Ratio 8 2.83 2.75
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 9 7.44 7.62
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10 8.9 % (5.6) %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10 7.5 % (3.9) %
FAD Payout Ratio 2 95.47 % 93.58 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 64.6 % 63.4 %
Occupancy of In-Service Properties 88.6 % 88.7 %
Capitalization:
Consolidated Debt $ 12,536,065 $ 12,536,264
BXP’s Share of Debt 11 $ 12,534,659 $ 12,508,876
Consolidated Market Capitalization $ 32,436,223 $ 30,120,367
Consolidated Debt/Consolidated Market Capitalization 38.65 % 41.62 %
BXP’s Share of Market Capitalization 11 $ 32,434,817 $ 30,092,979
BXP’s Share of Debt/BXP’s Share of Market Capitalization 11 38.65 % 41.57 %

_____________

1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 6.

2For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4For the three months ended March 31, 2021, includes the straight-line impact of approximately $9,354 related to deferred revenue from a tenant.

5Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

6For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.

7For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.

8For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see page 30.

9For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see page 29.

10For a quantitative reconciliation for the three months ended June 30, 2021 and March 31, 2021, see pages 10, 63 and 64.

11For a quantitative reconciliation for June 30, 2021, see page 26.

Q2 2021
Consolidated Balance Sheets

(unaudited and in thousands)

30-Jun-21 31-Mar-21
ASSETS
Real estate $ 22,012,095 $ 21,941,536
Construction in progress 908,061 794,039
Land held for future development 497,019 421,349
Right of use assets - finance leases 237,765 237,017
Right of use assets - operating leases 170,331 144,143
Less accumulated depreciation (5,752,818) (5,665,061)
Total real estate 18,072,453 17,873,023
Cash and cash equivalents 557,307 697,369
Cash held in escrows 1 79,973 251,814
Investments in securities 41,476 39,002
Tenant and other receivables, net 58,624 51,271
Related party note receivable, net 77,872 77,640
Notes receivable, net 19,087 18,891
Accrued rental income, net 1,172,411 1,145,066
Deferred charges, net 627,338 622,649
Prepaid expenses and other assets 46,946 129,102
Investments in unconsolidated joint ventures 1,305,589 1,307,725
Total assets $ 22,059,076 $ 22,213,552
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,901,709 $ 2,904,672
Unsecured senior notes, net 9,634,356 9,631,592
Unsecured line of credit — —
Lease liabilities- finance leases 243,381 239,361
Lease liabilities - operating leases 226,594 200,383
Accounts payable and accrued expenses 305,969 260,875
Dividends and distributions payable 169,718 171,003
Accrued interest payable 107,386 76,675
Preferred stock redemption liability 1 — 200,000
Other liabilities 370,990 399,965
Total liabilities 13,960,103 14,084,526
Commitments and contingencies — —
Redeemable deferred stock units 8,980 7,679
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, No shares issued and outstanding at June 30, 2021 and March 31, 20211 — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,214,859 and 156,153,100 issued and 156,135,959 and 156,074,200 outstanding at June 30, 2021 and March 31, 2021, respectively 1,561 1,561
Additional paid-in capital 6,405,916 6,392,923
Dividends in excess of earnings (612,247) (570,982)
Treasury common stock at cost, 78,900 shares at June 30, 2021 and March 31, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (43,166) (45,139)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,749,342 5,775,641
Noncontrolling interests:
Common units of the Operating Partnership 615,308 620,106
Property partnerships 1,725,343 1,725,600
Total equity 8,089,993 8,121,347
Total liabilities and equity $ 22,059,076 $ 22,213,552

_____________

1On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.

Q2 2021
Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Jun-21 31-Mar-21
Revenue
Lease $ 684,025 $ 685,817
Parking and other 17,864 14,494
Insurance proceeds 1 418 2,444
Hotel revenue 1,561 632
Development and management services 7,284 6,803
Direct reimbursements of payroll and related costs from management services contracts 2,655 3,505
Total revenue 713,807 713,695
Expenses
Operating 117,769 118,516
Real estate taxes 130,440 136,395
Demolition costs 92 18
Restoration expenses related to insurance claim 1 402 2,460
Hotel operating 1,996 2,051
General and administrative 2 38,405 44,959
Payroll and related costs from management services contracts 2,655 3,505
Transaction costs 751 331
Depreciation and amortization 183,838 176,565
Total expenses 476,348 484,800
Other income (expense)
Income (loss) from unconsolidated joint ventures (1,373) 5,225
Gains on sales of real estate 7,756 —
Gains from investments in securities 2 2,275 1,659
Interest and other income (loss) 1,452 1,168
Losses from early extinguishments of debt — (898)
Interest expense (106,319) (107,902)
Net income 141,250 128,147
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (17,164) (16,467)
Noncontrolling interest - common units of the Operating Partnership 3 (12,383) (11,084)
Net income attributable to Boston Properties, Inc. 111,703 100,596
Preferred dividends 4 — (2,560)
Preferred stock redemption charge 4 — (6,412)
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.72 $ 0.59
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.71 $ 0.59

_____________

1 Amounts relate to damage at one of the Company’s properties in New York City due to a water main break.

2General and administrative expense includes $2.3 million and $1.7 million and Gains from investments in securities include $2.3 million and $1.7 million for the three months ended June 30, 2021 and March 31, 2021, respectively, related to the Company’s deferred compensation plan.

3For additional detail, see page 6.

4On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.

Q2 2021
Funds from operations (FFO) 1

(unaudited and dollars in thousands, except per share amounts)

Three Months Ended
30-Jun-21 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
Add:
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Noncontrolling interest - common units of the Operating Partnership 12,383 11,084
Noncontrolling interests in property partnerships 17,164 16,467
Net income 141,250 128,147
Add:
Depreciation and amortization expense 183,838 176,565
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,113) (16,457)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 15,350 18,412
Corporate-related depreciation and amortization (444) (440)
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures — 10,257
Gains on sales of real estate 7,756 —
Noncontrolling interests in property partnerships 17,164 16,467
Preferred dividends — 2,560
Preferred stock redemption charge — 6,412
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 297,961 270,531
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 29,319 26,728
FFO attributable to Boston Properties, Inc. common shareholders $ 268,642 $ 243,803
Boston Properties, Inc.’s percentage share of Basic FFO 90.16 % 90.12 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 9.84 % 9.88 %
Basic FFO per share $ 1.72 $ 1.56
Weighted average shares outstanding - basic 156,107 155,928
Diluted FFO per share $ 1.72 $ 1.56
Weighted average shares outstanding - diluted 156,519 156,099

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Jun-21 31-Mar-21
Basic FFO $ 297,961 $ 270,531
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 297,961 270,531
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 29,259 26,693
Boston Properties, Inc.’s share of Diluted FFO $ 268,702 $ 243,838

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Jun-21 31-Mar-21
Shares/units for Basic FFO 173,150 173,017
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 412 171
Shares/units for Diluted FFO 173,562 173,188
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,043 17,089
Boston Properties, Inc.’s share of shares/units for Diluted FFO 156,519 156,099
Boston Properties, Inc.’s percentage share of Diluted FFO 90.18 % 90.13 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.

Q2 2021
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Jun-21 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
Add:
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Noncontrolling interest - common units of the Operating Partnership 12,383 11,084
Noncontrolling interests in property partnerships 17,164 16,467
Net income 141,250 128,147
Add:
Depreciation and amortization expense 183,838 176,565
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,113) (16,457)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 15,350 18,412
Corporate-related depreciation and amortization (444) (440)
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures — 10,257
Gains on sales of real estate 7,756 —
Noncontrolling interests in property partnerships 17,164 16,467
Preferred dividends — 2,560
Preferred stock redemption charge — 6,412
Basic FFO 297,961 270,531
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 (132) 3,026
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 698 1,166
Stock-based compensation 13,993 19,806
Non-real estate depreciation 444 440
Unearned portion of capitalized fees from consolidated joint ventures 6 603 311
Non-cash losses from early extinguishments of debt — 898
Preferred stock redemption charge — 6,412
Less:
BXP’s Share of straight-line rent 1 30,855 13,601
BXP’s Share of fair value lease revenue 1, 7 1,193 1,206
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 — —
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 82,476 77,681
BXP’s Share of maintenance capital expenditures 1, 8 22,145 29,595
Hotel improvements, equipment upgrades and replacements 3 31
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 178,341 $ 181,922
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 170,266 $ 170,240
FAD Payout Ratio1 (B÷A) 95.47 % 93.58 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2For a quantitative reconciliation for the three months ended June 30, 2021, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 2021, see page 36.

4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

6See page 59 for additional information.

7Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

8Maintenance capital expenditures do not include capital expenditures that are planned at the time of acquisition or capital expenditures incurred in connection with repositioning activities.

Q2 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
30-Jun-21 30-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 111,703 269,150
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,383 30,197
Noncontrolling interest in property partnerships 17,164 (767)
Net income 141,250 298,580
Add:
Interest expense 106,319 107,142
Depreciation and amortization expense 183,838 178,188
Transaction costs 751 332
Payroll and related costs from management services contracts 2,655 2,484
General and administrative expense 38,405 37,743
Less:
Interest and other income (loss) 1,452 1,305
Gains from investments in securities 2,275 4,552
Gains on sales of real estate 7,756 203,767
Income (loss) from unconsolidated joint ventures (1,373) 1,832
Direct reimbursements of payroll and related costs from management services contracts 2,655 2,484
Development and management services revenue 7,284 8,125
Net Operating Income (NOI) 453,169 402,404
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 25,417 27,911
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 46,287 32,427
BXP’s Share of NOI 432,299 397,888
Less:
Termination income 5,355 3,309
BXP’s share of termination income from unconsolidated joint ventures 1 709 —
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2 (3) 321
BXP’s Share of NOI (excluding termination income) $ 426,232 $ 394,900
Net Operating Income (NOI) $ 453,169 $ 402,404
Less:
Termination income 5,355 3,309
NOI from non Same Properties (excluding termination income) 3 7,268 6,624
Same Property NOI (excluding termination income) 440,546 392,471
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 46,290 32,106
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 1,463 (1,150)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 24,708 27,911
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 592 1,445
BXP’s Share of Same Property NOI (excluding termination income) $ 419,835 $ 385,681

_____________

1For a quantitative reconciliation for the three months ended June 30, 2021, see page 62.

2For a quantitative reconciliation for the three months ended June 30, 2021, see pages 59-60.

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to June 30, 2021 and therefore are no longer a part of the Company’s property portfolio.

Q2 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
30-Jun-21 30-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 111,703 269,150
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,383 30,197
Noncontrolling interest in property partnerships 17,164 (767)
Net income 141,250 298,580
Add:
Interest expense 106,319 107,142
Depreciation and amortization expense 183,838 178,188
Transaction costs 751 332
Payroll and related costs from management services contracts 2,655 2,484
General and administrative expense 38,405 37,743
Less:
Interest and other income (loss) 1,452 1,305
Gains from investments in securities 2,275 4,552
Gains on sales of real estate 7,756 203,767
Income (loss) from unconsolidated joint ventures (1,373) 1,832
Direct reimbursements of payroll and related costs from management services contracts 2,655 2,484
Development and management services revenue 7,284 8,125
Net Operating Income (NOI) 453,169 402,404
Less:
Straight-line rent 31,267 17,024
Fair value lease revenue 731 2,159
Termination income 5,355 3,309
Add:
Straight-line ground rent expense adjustment 1 567 799
Lease transaction costs that qualify as rent inducements 2 826 1,616
NOI - cash (excluding termination income) 417,209 382,327
Less:
NOI - cash from non Same Properties (excluding termination income) 3 5,444 9,324
Same Property NOI - cash (excluding termination income) 411,765 373,003
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 43,833 33,522
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 1,023 (166)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5 21,477 22,949
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 781 (76)
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 389,651 $ 362,340

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $(103) and $152 for the three months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the Company has remaining lease payments aggregating approximately $25.6 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 7.

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to June 30, 2021 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended June 30, 2021, see page 60.

5For a quantitative reconciliation for the three months ended June 30, 2021, see page 62.

Q2 2021
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Jun-21 30-Jun-20 Change Change 30-Jun-21 30-Jun-20 Change Change
Rental Revenue 2 $ 679,570 $ 621,857 $ 10,634 $ 9,501
Less: Termination income 5,355 3,264 — —
Rental revenue (excluding termination income) 2 674,215 618,593 9.0 % 10,634 9,501 11.9 %
Less: Operating expenses and real estate taxes 237,923 229,685 8,238 3.6 % 6,380 5,938 442 7.4 %
NOI (excluding termination income) 2, 3 $ 436,292 $ 388,908 12.2 % $ 4,254 $ 3,563 19.4 %
Rental revenue (excluding termination income) 2 $ 674,215 $ 618,593 9.0 % $ 10,634 $ 9,501 11.9 %
Less: Straight-line rent and fair value lease revenue 30,207 21,955 8,252 37.6 % 20 (76) 96 126.3 %
Add: Lease transaction costs that qualify as rent inducements 4 879 1,612 (733) (45.5) % — — — — %
Subtotal 644,887 598,250 46,637 7.8 % 10,614 9,577 1,037 10.8 %
Less: Operating expenses and real estate taxes 237,923 229,685 8,238 3.6 % 6,380 5,938 442 7.4 %
Add: Straight-line ground rent expense 5 567 799 (232) (29.0) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 407,531 $ 369,364 10.3 % $ 4,234 $ 3,639 16.4 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Jun-21 30-Jun-20 Change Change 30-Jun-21 30-Jun-20 Change Change
Rental Revenue 2 $ 690,204 $ 631,358 $ 39,638 $ 40,588
Less: Termination income 5,355 3,264 709 —
Rental revenue (excluding termination income) 2 684,849 628,094 9.0 % 38,929 40,588 (4.1) %
Less: Operating expenses and real estate taxes 244,303 235,623 8,680 3.7 % 14,813 14,122 691 4.9 %
NOI (excluding termination income) 2, 3 $ 440,546 $ 392,471 12.2 % $ 24,116 $ 26,466 (8.9) %
Rental revenue (excluding termination income) 2 $ 684,849 $ 628,094 9.0 % $ 38,929 $ 40,588 (4.1) %
Less: Straight-line rent and fair value lease revenue 30,227 21,879 8,348 38.2 % 2,716 3,254 (538) (16.5) %
Add: Lease transaction costs that qualify as rent inducements 4 879 1,612 (733) (45.5) % (704) (187) (517) 276.5 %
Subtotal $ 655,501 $ 607,827 47,674 7.8 % 35,509 37,147 (1,638) (4.4) %
Less: Operating expenses and real estate taxes 244,303 235,623 8,680 3.7 % 14,813 14,122 691 4.9 %
Add: Straight-line ground rent expense 5 567 799 (232) (29.0) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 411,765 $ 373,003 10.4 % $ 20,696 $ 23,025 (10.1) %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7, 8
Three Months Ended % Three Months Ended %
30-Jun-21 30-Jun-20 Change Change 30-Jun-21 30-Jun-20 Change Change
Rental Revenue 2 $ 71,666 $ 61,192 $ 658,176 $ 610,754
Less: Termination income (3) 321 6,067 2,943
Rental revenue (excluding termination income) 2 71,669 60,871 17.7 % 652,109 607,811 7.3 %
Less: Operating expenses and real estate taxes 26,842 27,615 (773) (2.8) % 232,274 222,130 10,144 4.6 %
NOI (excluding termination income) 2, 3 $ 44,827 $ 33,256 34.8 % $ 419,835 $ 385,681 8.9 %
Rental revenue (excluding termination income) 2 $ 71,669 $ 60,871 17.7 % $ 652,109 $ 607,811 7.3 %
Less: Straight-line rent and fair value lease revenue 2,344 (312) 2,656 851.3 % 30,599 25,445 5,154 20.3 %
Add: Lease transaction costs that qualify as rent inducements 4 327 120 207 172.5 % (152) 1,305 (1,457) (111.6) %
Subtotal 69,652 61,303 8,349 13.6 % 621,358 583,671 37,687 6.5 %
Less: Operating expenses and real estate taxes 26,842 27,615 (773) (2.8) % 232,274 222,130 10,144 4.6 %
Add: Straight-line ground rent expense 5 — — — — % 567 799 (232) (29.0) %
NOI - cash (excluding termination income) 2, 3 $ 42,810 $ 33,688 27.1 % $ 389,651 $ 362,340 7.5 %

All values are in US Dollars.

___________________

1Includes 100% share of consolidated joint ventures that are a Same Property.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 8-9.

4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 7.

5Excludes the straight-line impact of approximately $(103) and $152 for the three months ended June 30, 2021 and 2020, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 9.

Q2 2021
Same property net operating income (NOI) by reportable segment (continued)

6BXP’s Share equals (A) + (B) - (C).

7BXP’s Share of Same Store NOI (excluding termination income) increased $34,154 compared to Q2 2020. Included in the Q2 2021 comparison are BXP’s Share of $24,421 decrease in write-offs associated with accrued rent, net, $14,045 decrease in write-offs associated with accounts receivable, net, $3,070 increase in parking and other revenue and a $1,439 increase in NOI at our only hotel. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $42,975. For additional information, see page 57.

8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $27,311 compared to Q2 2020. Included in the Q2 2021 comparison are BXP’s Share of $14,045 decrease in write-offs associated with accounts receivable, net, $6,964 increase in lease revenue related to primarily related to lower COVID-19 cash rent abatements and deferrals, $3,070 increase in parking and other revenue and a $1,439 increase in NOI at our only hotel. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $25,518. For additional information, see page 57.

Q2 2021
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Jun-21 31-Mar-21
Maintenance capital expenditures $ 23,851 $ 30,789
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures (10) 11
Hotel improvements, equipment upgrades and replacements 3 31
Subtotal 23,844 30,831
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 380 323
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,156 1,551
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 2,086 1,517
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs — —
BXP’s Share of Capital Expenditures 1 $ 23,294 $ 31,188

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Jun-21 31-Mar-21
Square feet 1,354,986 1,095,513
Tenant improvements and lease commissions PSF $ 74.26 $ 82.44

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2Includes 100% of unconsolidated joint ventures.

Q2 2021
Acquisitions and dispositions

For the period from January 1, 2021 through June 30, 2021

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
153 & 211 Second Avenue Waltham, MA June 2, 2021 136,882 $ 100,176 $ 5,000 $ 105,176 100.0 %
Total Acquisitions 136,882 $ 100,176 $ 5,000 $ 105,176 100.0 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain
Annapolis Junction Buildings Six and Seven 1 Annapolis, MD March 30, 2021 246,568 $ 65,948 $ 17,600 $ 10,257
6595 Springfield Center Drive 2 Springfield, VA December 13, 2018 N/A N/A N/A 7,756
Total Dispositions 246,568 $ 65,948 $ 17,600 $ 18,013

________________

1Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million. With the sale of Annapolis Junction Buildings Six and Seven, the Company no longer has any assets in Annapolis, Maryland.

2The Company sold its 6595 Springfield Center Drive development project located in Springfield, Virginia. Concurrently with the sale, the Company agreed to act as development manager and guaranteed the completion of the project. The Company earned a development fee of approximately $7.9 million during the development of this building. Upon completion of the project, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, the Company recognized a gain on sale of real estate of approximately $7.8 million during the three months ended June 30, 2021.

Q2 2021
Construction in progress

as of June 30, 2021

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Maddie145@ Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 6/30/2021 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 $ 251,146 $ 418,400 $ — $ — $ 167,254 90 % — % N/A
100 Causeway Street (50% ownership) Q4 2021 Q3 2022 Boston, MA 632,000 217,179 267,300 200,000 137,894 — 95 % 2 % $ (20)
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q1 2022 Q2 2022 Bethesda, MD 734,000 165,438 198,900 127,500 99,426 5,388 100 % — % N/A
Reston Next Q1 2022 Q4 2023 Reston, VA 1,062,000 461,282 715,300 — — 254,018 85 % — % N/A
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 184,957 356,100 — — 171,143 56 % — % N/A
Total Office Properties under Construction 3,328,000 1,280,002 1,956,000 327,500 237,320 597,803 87 % — % (20)
Lab/Life Sciences
200 West Street (Redevelopment) 6 Q4 2021 Q4 2021 Waltham, MA 138,000 19,300 47,800 — — 28,500 100 % — % N/A
880 Winter Street (Redevelopment) Q3 2023 Q2 2024 Waltham, MA 224,000 2,079 108,000 — — 105,921 — % — % N/A
751 Gateway (49% ownership) Q1 2023 Q3 2024 South San Francisco, CA 229,000 22,852 127,600 — — 104,748 — % — % N/A
180 CityPoint Q1 2024 Q4 2024 Waltham, MA 329,000 27,291 274,700 — — 247,409 — % — % N/A
Total Lab/Life Sciences Properties under Construction 920,000 71,522 558,100 — — 486,578 15 % — % —
Other
The Prudential Center Observatory (Redevelopment) Q2 2023 N/A Boston, MA 59,000 31,409 182,300 — — 150,891 N/A — % N/A
Total Properties Under Construction 4,307,000 $ 1,382,933 $ 2,696,400 $ 327,500 $ 237,320 $ 1,235,272 71 % 7 — % $ (20)

PROJECTS FULLY PLACED IN-SERVICE DURING 2021

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 6/30/2021 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
One Five Nine East 53rd (55% Ownership) Q1 2021 Q1 2021 New York, NY 220,000 $ 141,717 $ 150,000 $ — $ — $ 8,283 96 % $ 3,336
Total Projects Fully Placed In-Service 220,000 $ 141,717 $ 150,000 $ — $ — $ 8,283 96 % $ 3,336

_____________

1A project is classified as Construction in Progress when (1) construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and (2) capitalized interest has commenced.

2Includes income (loss) and interest carry on debt and equity investment.

3Represents percentage leased as of July 23, 2021, including leases with future commencement dates.

4Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.

5Amounts represent Net Operating Income (Loss) for the three months ended June 30, 2021. See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

6Represents a portion of the property under redevelopment for conversion to laboratory space.

7 Total percentage leased excludes Other.

Q2 2021
Land parcels and purchase options

as of June 30, 2021

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,938,000
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% Ownership) 1,078,000
San Francisco, CA 850,000
Santa Clara, CA 4 632,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
South San Francisco, CA (50% Ownership) 411,000
Waltham, MA 5 396,000
Dulles, VA 310,000
El Segundo, CA (50% Ownership) 275,000
Total 13,681,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 1,400,000
Boston, MA 1,300,000
Waltham, MA 6 1,200,000
Total 3,900,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

2During the fourth quarter of 2020, a ground lease commenced with a hotel developer to lease approximately 200,000 square feet from the Company. Construction is contingent on the developer’s ability to obtain construction financing.

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 22.

4On April 16, 2021, the Company removed 3625-3635 Peterson Way from its in-service portfolio following the lease expiration of the last tenant on April 15, 2021. The Company intends to demolish the building and redevelop the site at a future date.

5On June 2, 2021, the Company acquired 153 and 211 Second Avenue, including an additional 120,000 square feet of potential development.

6The Company expects to be a 50% partner in the future development of these sites.

Q2 2021
Land parcels and purchase options

for the three months ended June 30, 2021

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,131,799
Add:
Properties placed (and partially placed) in-service 1 2,154
Leases expiring or terminated during the period 1,410,005
Total space available for lease 6,543,958
1st generation leases 2,154
2nd generation leases with new tenants 814,522
2nd generation lease renewals 540,464
Total space leased 1,357,140
Vacant space available for lease at the end of the period 5,186,818
Net (increase)/decrease in available space (55,019)
Second generation leasing information: 2
Leases commencing during the period (SF) 1,354,986
Weighted average lease term (months) 90
Weighted average free rent period (days) 194
Total transaction costs per square foot 3 74.26
Increase (decrease) in gross rents total 4 (0.13)
Increase (decrease) in net rents total 4 (0.28)
Increase (decrease) in gross rents Office (excluding retail) 9 14.14
Increase (decrease) in net rents Office (excluding retail) 9 21.03

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents 4 Total square feet of leases executed in the quarter 6, 7
1st generation 2nd generation total 5 gross net
Boston 2,154 419,894 422,048 34.46 % 56.14 % 193,720
Los Angeles — 204,352 204,352 (3.15) % (5.35) % 490,742
New York 8 — 193,791 193,791 (37.87) % (43.79) % 152,366
San Francisco — 220,112 220,112 32.17 % 47.11 % 119,751
Washington, DC — 316,837 316,837 (5.95) % (8.11) % 282,639
Total / Weighted Average 2,154 1,354,986 1,357,140 (0.13) % (0.28) % 1,239,218
Total / Weighted Average Office (excluding retail) 9 2,154 1,277,244 1,279,398 14.14 % 21.03 %

_____________

1Total square feet of properties partially placed in-service in Q2 2021 consists of 2,154 square feet of office space at 100 Causeway Street.

2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,354,986 square feet of second generation leases that commenced in Q2 2021, leases for 1,029,714 square feet were signed in prior periods.

3Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) or net rent (gross rent less operating expenses) on the new vs. expired leases on the 975,749 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

5Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

6Amounts shown in this column exclude COVID-19 related lease modifications executed in the second quarter of 2021 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $1.4 million (BXP’s Share) in the second quarter. In addition, COVID-19 related lease modifications from the second quarter of 2020 through the first quarter of 2021 provide cash rent and/or abatement in the aggregate amount of approximately $6.4 million (BXP’s Share) in the second quarter 2021. For additional information, see page 57.

7Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 327,426.

8New York increase (decrease) in 2nd generation cash rents, gross and net include 33,289 square feet related to retail leases. Excluding those retail leases, New York 2nd generation cash rents increased 5.52% gross and 8.44% net, respectively.

9Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) or net rent (gross rent less operating expenses) on the new vs. expired leases on the 928,977 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”) and excludes retail leases.

Q2 2021
Portfolio overview

for the three months ended June 30, 2021

(dollars in thousands)

Rentable square footage of in-service properties by location and unit type 1, 2

Office Retail Residential Hotel Total
Boston 13,717,839 1,058,719 550,114 330,000 15,656,672
Los Angeles 2,181,579 124,932 — — 2,306,511
New York 11,359,823 417,849 — — 11,777,672
San Francisco 7,284,889 343,803 318,171 — 7,946,863
Washington, DC 8,059,374 661,537 822,436 — 9,543,347
Total 42,603,504 2,606,840 1,690,721 330,000 47,231,065
% of Total 90.20 % 5.52 % 3.58 % 0.70 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 645,470 $ 47,769 $ 9,161 $ 1,468 $ 703,868
Less:
Partners’ share from consolidated joint ventures 4 65,290 8,183 — — 73,473
Add:
BXP’s share from unconsolidated joint ventures 5 38,736 2,667 1,402 — 42,805
BXP’s Share of Rental revenue 1 $ 618,916 $ 42,253 $ 10,563 $ 1,468 $ 673,200
% of Total 91.93 % 6.28 % 1.57 % 0.22 % 100.00 %

Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 6

CBD Suburban Total
Boston 26.22 % 7.79 % 34.01 %
Los Angeles 2.88 % — % 2.88 %
New York 25.97 % 2.07 % 28.04 %
San Francisco 17.78 % 2.84 % 20.62 %
Washington, DC 5.20 % 9.25 % 14.45 %
Total 78.05 % 21.95 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 20-23.

3Excludes approximately $93 of revenue from retail tenants that is included in Retail.

4See page 60 for additional information.

5See page 62 for additional information.

6BXP’s Share of NOI (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of NOI (excluding termination income), see page 8.

Q2 2021
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel 2
Three Months Ended Three Months Ended
30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21
Rental Revenue 3 $ 9,763 $ 9,175 $ 1,561 $ 632
Less: Operating expenses and real estate taxes 5,928 6,127 1,996 2,051
Net Operating Income (Loss) (NOI) 3 3,835 3,048 (435) (1,419)
Add: BXP’s share of NOI from unconsolidated joint ventures 449 40 N/A N/A
BXP’s Share of NOI 3 $ 4,284 $ 3,088 $ (435) $ (1,419)
Rental Revenue 3 $ 9,763 $ 9,175 $ 1,561 $ 632
Less: Straight line rent and fair value lease revenue 21 38 (5) (5)
Subtotal 9,742 9,137 1,566 637
Less: Operating expenses and real estate taxes 5,928 6,127 1,996 2,051
NOI - cash basis 3 3,814 3,010 (430) (1,414)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 449 40 N/A N/A
BXP’s Share of NOI - cash basis 3 $ 4,263 $ 3,050 $ (430) $ (1,414)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-21 30-Jun-20
BOSTON
Hub50House (50% ownership), Boston, MA 3, 4 440
Average Monthly Rental Rate $ 3,039 $ 3,360 (9.55) %
Average Rental Rate Per Occupied Square Foot $ 4.25 $ 5.26 (19.20) %
Average Physical Occupancy 71.74 % 35.38 % 102.77 %
Average Economic Occupancy 63.50 % 28.97 % 119.19 %
Proto Kendall Square, Cambridge, MA 3, 5 280
Average Monthly Rental Rate $ 2,504 $ 2,891 (13.39) %
Average Rental Rate Per Occupied Square Foot $ 4.60 $ 5.31 (13.37) %
Average Physical Occupancy 91.67 % 92.50 % (0.90) %
Average Economic Occupancy 90.21 % 91.86 % (1.80) %
The Lofts at Atlantic Wharf, Boston, MA 3, 5 86
Average Monthly Rental Rate $ 3,156 $ 4,530 (30.33) %
Average Rental Rate Per Occupied Square Foot $ 3.51 $ 5.01 (29.94) %
Average Physical Occupancy 96.12 % 91.86 % 4.64 %
Average Economic Occupancy 93.67 % 91.71 % 2.14 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5 N/A
Average Occupancy 21.70 % — % 100.00 %
Average Daily Rate $ 160.96 $ — 100.00 %
Revenue Per Available Room $ 34.86 $ — 100.00 %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 6 402
Average Monthly Rental Rate $ 3,183 N/A N/A
Average Rental Rate Per Occupied Square Foot $ 3.79 N/A N/A
Average Physical Occupancy 26.53 % N/A N/A
Average Economic Occupancy 18.71 % N/A N/A
Q2 2021
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-21 30-Jun-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 5 508
Average Monthly Rental Rate $ 2,143 $ 2,320 (7.63) %
Average Rental Rate Per Occupied Square Foot $ 2.22 $ 2.45 (9.39) %
Average Physical Occupancy 87.20 % 81.50 % 6.99 %
Average Economic Occupancy 83.13 % 76.72 % 8.36 %
The Avant at Reston Town Center, Reston, VA 3, 5 359
Average Monthly Rental Rate $ 2,180 $ 2,371 (8.06) %
Average Rental Rate Per Occupied Square Foot $ 2.38 $ 2.60 (8.46) %
Average Physical Occupancy 94.99 % 89.51 % 6.12 %
Average Economic Occupancy 94.26 % 88.37 % 6.67 %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and re-opened on October 2, 2020. The hotel continues to operate at a diminished occupancy due to the continued impact of COVID-19 on business and leisure travel.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4This property was completed and fully placed in-service on July 24, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.

5Excludes retail space.

6This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.

Q2 2021
In-service property listing as of June 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,768,163 96.6 % $ 73.00
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 97.6 % 64.23
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,195,570 96.3 % 65.75
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,455 92.4 % 70.02
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 99.8 % 79.44
Prudential Center (retail shops) 3, 4 CBD Boston MA 1 597,992 75.6 % 90.20
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 99.0 % 56.41
The Hub on Causeway - Podium (50% ownership) 5 CBD Boston MA 1 382,497 81.4 % 64.59
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 77.30
Star Market at the Prudential Center 3 CBD Boston MA 1 57,236 100.0 % 61.07
Subtotal 10 7,763,993 94.5 % $ 70.54
145 Broadway East Cambridge MA 1 490,086 99.1 % $ 85.43
355 Main Street East Cambridge MA 1 259,640 99.0 % 76.58
90 Broadway East Cambridge MA 1 223,771 100.0 % 71.80
255 Main Street East Cambridge MA 1 215,394 97.5 % 85.45
300 Binney Street East Cambridge MA 1 195,191 100.0 % 59.07
150 Broadway East Cambridge MA 1 177,226 100.0 % 80.94
105 Broadway East Cambridge MA 1 152,664 100.0 % 68.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 47.46
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.54
Subtotal 9 1,976,616 99.4 % $ 74.12
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,136 80.1 % $ 45.00
Reservoir Place Route 128 Mass Turnpike MA 1 526,985 79.6 % 38.48
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,991 99.4 % 42.45
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 56.68
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 96.1 % 38.82
230 CityPoint Route 128 Mass Turnpike MA 1 296,212 93.9 % 41.48
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 57.55
20 CityPoint 6 Route 128 Mass Turnpike MA 1 211,476 63.2 % 51.24
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 95.8 % 48.50
890 Winter Street Route 128 Mass Turnpike MA 1 174,472 48.1 % 45.65
153 & 211 Second Avenue 6 Route 128 Mass Turnpike MA 2 136,882 100.0 % 53.97
200 West Street 6, 7 Route 128 Mass Turnpike MA 1 134,921 81.5 % 51.24
1265 Main Street (50% ownership) 5 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.89
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 44.50
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0 % 42.00
The Point 3 Route 128 Mass Turnpike MA 1 16,300 84.7 % 45.33
191 Spring Street Route 128 Northwest MA 1 170,997 100.0 % 44.66
Lexington Office Park Route 128 Northwest MA 2 166,779 64.0 % 30.40
201 Spring Street Route 128 Northwest MA 1 106,300 100.0 % 45.29
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 65.22
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.18
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 45.81
181 Spring Street Route 128 Northwest MA 1 55,793 100.0 % 43.99
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 44.27
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 49.46
Subtotal 32 5,007,545 87.8 % $ 45.68
Boston Office Total: 51 14,748,154 92.9 % $ 63.03
Residential
Hub50House (440 units) (50% ownership) 5, 6 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,258 Q2 2021
--- ---
In-service property listing (continued) as of June 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 55 15,656,672
LOS ANGELES
Office
Colorado Center (50% ownership) 5 West Los Angeles CA 6 1,129,739 90.3 % $ 69.21
Santa Monica Business Park (55% ownership) 5 West Los Angeles CA 14 1,102,368 76.9 % 64.70
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 72.02
Subtotal 27 2,306,511 83.9 % $ 67.34
Los Angeles Total: 27 2,306,511 83.9 % $ 67.34
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) 4 Plaza District NY 1 1,957,284 91.5 % $ 163.18
601 Lexington Avenue (55% ownership) 6 Park Avenue NY 1 1,671,590 95.8 % 100.04
399 Park Avenue Park Avenue NY 1 1,576,874 96.8 % 102.61
599 Lexington Avenue Park Avenue NY 1 1,062,708 98.6 % 92.74
Times Square Tower (55% ownership) Times Square NY 1 1,254,943 81.7 % 78.52
250 West 55th Street Times Square / West Side NY 1 966,979 99.4 % 98.23
Dock 72 (50% ownership) 5, 6 Brooklyn NY 1 668,625 33.1 % 60.58
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 100.0 % 142.00
Subtotal 8 9,514,092 89.7 % $ 110.80
510 Carnegie Center Princeton NJ 1 234,160 — % $ —
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 36.00
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.46
212 Carnegie Center Princeton NJ 1 151,355 76.6 % 37.99
214 Carnegie Center Princeton NJ 1 146,979 49.0 % 43.23
506 Carnegie Center Princeton NJ 1 138,616 82.1 % 37.90
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 42.23
202 Carnegie Center Princeton NJ 1 134,068 91.2 % 41.35
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.31
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.28
101 Carnegie Center Princeton NJ 1 121,620 100.0 % 39.22
502 Carnegie Center Princeton NJ 1 121,460 100.0 % 39.38
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.14
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 39.13
103 Carnegie Center Princeton NJ 1 96,332 59.8 % 32.67
105 Carnegie Center Princeton NJ 1 69,955 56.6 % 32.65
302 Carnegie Center Princeton NJ 1 64,926 89.3 % 36.21
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 37.87
201 Carnegie Center Princeton NJ — 6,500 100.0 % 37.26
Subtotal 18 2,263,580 76.7 % $ 38.75
New York Total: 26 11,777,672 87.2 % $ 98.61
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 104.59
Embarcadero Center Four CBD San Francisco CA 1 941,166 94.0 % 83.49
Embarcadero Center One CBD San Francisco CA 1 831,450 81.9 % 78.29
Embarcadero Center Two CBD San Francisco CA 1 800,978 87.5 % 79.05 Q2 2021
--- ---
In-service property listing (continued) as of June 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
Embarcadero Center Three CBD San Francisco CA 1 786,078 88.3 % 81.51
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 70.57
535 Mission Street CBD San Francisco CA 1 307,235 94.3 % 85.79
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 66.16
Subtotal 9 5,638,462 92.5 % $ 86.47
Gateway Commons (54% ownership) 5, 6 South San Francisco CA 6 1,072,096 70.4 % $ 58.95
Mountain View Research Park Mountain View CA 15 542,264 76.3 % 72.73
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 82.86
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 39.68
North First Business Park 8 San Jose CA 5 190,636 61.9 % 27.34
Subtotal 28 1,977,405 73.4 % $ 62.42
San Francisco Office Total: 37 7,615,867 87.6 % $ 81.22
Residential
The Skylyne (402 units) 6 CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 38 7,946,863
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 5 East End Washington DC 1 657,481 62.2 % $ 65.58
901 New York Avenue (25% ownership) 5 East End Washington DC 1 541,795 73.3 % 66.27
601 Massachusetts Avenue East End Washington DC 1 478,818 97.3 % 97.17
Market Square North (50% ownership) 5 East End Washington DC 1 417,979 79.5 % 69.90
2200 Pennsylvania Avenue CBD Washington DC 1 458,831 96.3 % 90.88
1330 Connecticut Avenue CBD Washington DC 1 253,941 89.4 % 72.58
Sumner Square CBD Washington DC 1 209,556 93.7 % 55.03
500 North Capitol Street, N.W. (30% ownership) 5 Capitol Hill Washington DC 1 230,900 98.5 % 80.88
Capital Gallery 6 Southwest Washington DC 1 176,809 95.3 % 56.44
Subtotal 9 3,426,110 83.6 % $ 75.61
South of Market Reston VA 3 623,250 82.3 % $ 53.07
Fountain Square Reston VA 2 505,458 75.5 % 54.66
One Freedom Square Reston VA 1 430,640 69.6 % 51.91
Two Freedom Square Reston VA 1 423,222 100.0 % 47.40
One and Two Discovery Square Reston VA 2 366,989 100.0 % 50.87
One Reston Overlook Reston VA 1 319,519 100.0 % 45.91
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 64.96
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.45
Democracy Tower Reston VA 1 259,441 97.7 % 59.13
Fountain Square Retail 3 Reston VA 1 216,591 86.0 % 39.14
Two Reston Overlook Reston VA 1 134,615 100.0 % 48.00
Subtotal 16 3,816,580 89.5 % $ 51.55
Wisconsin Place Office Montgomery County MD 1 299,217 82.3 % $ 61.62
Kingstowne Two Springfield VA 1 155,995 87.2 % 38.07
Kingstowne One Springfield VA 1 150,957 59.5 % 38.80
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 33.94
7435 Boston Boulevard Springfield VA 1 103,557 65.7 % 22.40
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail 3 Springfield VA 1 88,244 94.3 % 42.12
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.38
7501 Boston Boulevard Springfield VA 1 75,756 100.0 % 37.28
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 18.17 Q2 2021
--- ---
In-service property listing (continued) as of June 30, 2021
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 19.52
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.27
7451 Boston Boulevard Springfield VA 1 45,615 32.5 % 26.28
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 24.00
7375 Boston Boulevard Springfield VA 1 26,865 31.5 % 24.77
Subtotal 15 1,427,500 78.1 % $ 37.16
Washington, DC Office Total: 40 8,670,190 85.3 % $ 58.66
Residential
Signature at Reston (508 units) Reston VA 1 517,783
The Avant at Reston Town Center (359 units) Reston VA 1 355,374
Washington, DC Residential Total: 2 873,157
Washington, DC Total: 42 9,543,347
Total In-Service Properties: 188 47,231,065 88.6 % 9 $ 74.62 9

_____________

1Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

3This is a retail property.

4Includes 145,849 square feet at Prudential Center (retail shops) and 30,094 square feet at 767 Fifth Avenue (The GM building) of leases terminated by the Company where the tenant is still occupying the space.

5This is an unconsolidated joint venture property.

6Not included in the Same Property analysis. 685 Gateway was fully placed in-service in June 2020 and excluded from the Company’s same Property analysis. The Company’s One Five Nine East 53rd Street development project, the low-rise portion of 601 Lexington Avenue, was fully placed in-service in February 2021 and excluded from the Company’s Same Property analysis.

7A portion of this property is under redevelopment. For additional detail, see page 14.

8Property held for redevelopment.

9Excludes Hotel and Residential properties. For additional detail, see pages 18-19.

Q2 2021
Top 20 tenants listing and portfolio tenant diversification

as of June 30, 2021

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.62 % 10.6
2 Arnold & Porter Kaye Scholer 2.93 % 12.9
3 Akamai Technologies 2.22 % 13.3
4 Biogen 1.81 % 5.4
5 Shearman & Sterling 1.62 % 12.4
6 Kirkland & Ellis 1.55 % 15.9
7 Ropes & Gray 1.53 % 8.9
8 Google 1.38 % 16.2
9 WeWork 1.38 % 12.2
10 Microsoft 1.34 % 10.6
11 Weil Gotshal & Manges 1.23 % 12.9
12 Wellington Management 1.16 % 6.0
13 Millennium Management 1.16 % 9.5
14 Aramis (Estee Lauder) 1.08 % 16.0
15 US Government 0.97 % 5.1
16 Morrison & Foerster 0.93 % 9.2
17 O'Melveny & Myers 0.88 % 3.4
18 Bank of America 0.84 % 14.4
19 Mass Financial Services 0.84 % 6.7
20 Under Armour Retail 0.81 % 12.8
BXP’s Share of Annualized Rental Obligations 29.29 %
BXP’s Share of Square Feet 1 23.08 %
Weighted Average Remaining Lease Term (years) 11.0

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
Marriott International 7750 Wisconsin Avenue 734,000
Fannie Mae Reston Next 703,000
Verizon 100 Causeway Street 440,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Volkswagen Group of America Reston Next 196,000
Translate Bio 200 West Street 138,000

TENANT DIVERSIFICATION 2

chart-6ba7500661614fbc976a.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2Based on BXP’s Share of Annualized Rental Obligations.

3Represents leases signed with occupancy commencing in the future. The number of square feet is an estimate.

Q2 2021
Occupancy by location

as of June 30, 2021

TOTAL IN-SERVICE OFFICE PROPERTIES 1 - Quarter-over-Quarter

CBD Suburban Total
Location 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21 30-Jun-21 31-Mar-21
Boston 95.5 % 96.1 % 87.8 % 87.3 % 92.9 % 93.1 %
Los Angeles 83.9 % 82.2 % — % — % 83.9 % 82.2 %
New York 89.7 % 89.4 % 76.7 % 75.8 % 87.2 % 86.8 %
San Francisco 92.5 % 93.0 % 73.4 % 77.8 % 87.6 % 88.7 %
Washington, DC 83.6 % 83.4 % 86.4 % 87.2 % 85.3 % 85.7 %
Total Portfolio 90.9 % 91.0 % 83.6 % 84.0 % 88.6 % 88.7 %

chart-020b3cd3de03477b808a.jpg

SAME PROPERTY OFFICE PROPERTIES 1, 2 - Year-over-Year

CBD Suburban Total
Location 30-Jun-21 30-Jun-20 30-Jun-21 30-Jun-20 30-Jun-21 30-Jun-20
Boston 95.5 % 99.1 % 88.6 % 88.6 % 93.3 % 95.7 %
Los Angeles 83.9 % 95.9 % — % — % 83.9 % 95.9 %
New York 94.1 % 94.2 % 76.7 % 86.2 % 90.5 % 92.6 %
San Francisco 92.5 % 97.4 % 73.3 % 80.4 % 87.6 % 93.0 %
Washington, DC 83.0 % 83.1 % 86.4 % 85.6 % 85.1 % 84.6 %
Total Portfolio 92.3 % 95.3 % 83.7 % 86.0 % 89.5 % 92.3 %

chart-82fb158128254fcd958a.jpg

_____________

1Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Includes 100% of joint venture properties. Does not include residential units and hotel.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

Q2 2021
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 2,922,691
Unsecured Line of Credit —
Unsecured Senior Notes, at face value 9,700,000
Outstanding Principal 12,622,691
Discount on Unsecured Senior Notes (17,988)
Deferred Financing Costs, Net (68,638)
Consolidated Debt $ 12,536,065

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
601 Lexington Avenue (55% ownership) April 10, 2022 4.79% 4.75% $ 622,691
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 2,922,691

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
11 Year Unsecured Senior Notes February 1, 2023 3.95% 3.85% $ 1,000,000
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
$ 9,700,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,136 156,136 $ 17,891,624
Common Operating Partnership Units 17,528 17,528 2,008,534
Total Equity 173,664 $ 19,900,158
Consolidated Debt (A) $ 12,536,065
Add: BXP’s share of unconsolidated joint venture debt 3 1,190,473
Less: Partners’ share of consolidated debt 4 1,191,879
BXP’s Share of Debt 5 (B) $ 12,534,659
Consolidated Market Capitalization (C) $ 32,436,223
BXP’s Share of Market Capitalization 5 (D) $ 32,434,817
Consolidated Debt/Consolidated Market Capitalization (A÷C) 38.65 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 38.65 %

_____________

1All unsecured senior notes are rated BBB+ (stable), and Baa1 (stable) by S&P and Moody’s, respectively.

2Values are based on the June 30, 2021 closing price of $114.59 per share of BXP common stock.

3Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 34.

4Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 31.

5See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

Q2 2021
Debt analysis 1

as of June 30, 2021

(dollars in thousands)

chart-01fbe3f6c99c4c56baca.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at June 30, 2021 Letters of Credit Remaining Capacity at June 30, 2021
Unsecured Line of Credit $ 1,500,000 $ — $ 6,348 $ 1,493,652

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 76.85 % 3.48 % 3.57 % 6.1
Secured Debt 23.15 % 3.71 % 3.89 % 4.8
Consolidated Debt 100.00 % 3.54 % 3.64 % 5.8

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 100.00 % 3.54 % 3.64 % 5.8
Consolidated Debt 100.00 % 3.54 % 3.64 % 5.8

_____________

1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 34.

2The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.

Q2 2021
Senior unsecured debt covenant compliance ratios

In the fourth quarter of 2002, the Company’s Operating Partnership (Boston Properties Limited 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 Mellon Trust Company, N.A., as trustee, as supplemented from time to time (the “Indenture”), 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 meanings of which are 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 June 30, 2021 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios 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.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 45.7 % 42.4 %
Secured Debt/Total Assets Less than 50% 14.2 % 13.2 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.97 3.97
Unencumbered Assets/ Unsecured Debt Greater than 150% 242.1 % 265.3 %

_____________

1Capitalized Property Value for senior notes issued prior to December 4, 2017 is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized property value for senior notes issued on or after December 4, 2017 is determined for each property and is the greater of (x) annualized EBITDA capitalized at 7.0% and (y) the undepreciated book value as determined under GAAP.

Q2 2021
Net Debt to EBITDAre

(dollars in thousands)

Reconciliation of BXP’s Share of EBITDAre and BXP’s Share of EBITDAre – cash 1

Three Months Ended
30-Jun-21 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
Add:
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Noncontrolling interest - common units of the Operating Partnership 12,383 11,084
Noncontrolling interest in property partnerships 17,164 16,467
Net income 141,250 128,147
Add:
Interest expense 106,319 107,902
Losses from early extinguishments of debt — 898
Depreciation and amortization expense 183,838 176,565
Less:
Gains on sales of real estate 7,756 —
Income (loss) from unconsolidated joint ventures (1,373) 5,225
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 25,375 24,737
EBITDAre 1 450,399 433,024
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 46,222 44,344
BXP’s Share of EBITDAre 1 (A) 404,177 388,680
Add:
Stock-based compensation expense 13,993 19,806
Non-cash losses from early extinguishments of debt — 898
Preferred stock redemption charge — 6,412
BXP’s Share of straight-line ground rent expense adjustment 1 698 1,166
BXP’s Share of lease transaction costs that qualify as rent inducements 1 (132) 3,026
Less:
BXP’s Share of straight-line rent 1, 4 30,855 13,601
BXP’s Share of fair value lease revenue 1 1,193 1,206
BXP’s Share of EBITDAre – cash 1 $ 386,688 $ 405,181
BXP’s Share of EBITDAre (Annualized) 5 (A x 4) $ 1,616,708 $ 1,554,720

Reconciliation of BXP’s Share of Net Debt 1

30-Jun-21 31-Mar-21
Consolidated debt $ 12,536,065 $ 12,536,264
Less:
Cash and cash equivalents 557,307 697,369
Net debt 1 11,978,758 11,838,895
Add:
BXP’s share of unconsolidated joint venture debt 2 1,190,473 1,165,872
Partners’ share of cash and cash equivalents from consolidated joint ventures 143,868 124,957
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 90,535 94,796
Partners’ share of consolidated joint venture debt 3 1,191,879 1,193,260
BXP’s Share of Net Debt 1 (B) $ 12,030,685 $ 11,841,668
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.44 7.62

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended June 30, 2021, see pages 34 and 61.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended June 30, 2021, see pages 31 and 59.

4For the three months ended March 31, 2021, includes the straight-line impact of approximately $9,354 related to deferred revenue from a tenant.

5BXP’s Share of EBITDAre (Annualized) is calculated as the product of such amount for the quarter multiplied by four (4).

Q2 2021
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Jun-21 31-Mar-21
BXP’s Share of interest expense 1 $ 105,772 $ 107,839
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,673 3,725
Adjusted interest expense excluding capitalized interest (A) 100,653 102,668
Add:
BXP’s Share of capitalized interest 1 14,066 12,528
Adjusted interest expense including capitalized interest (B) $ 114,719 $ 115,196
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 386,688 $ 405,181
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.84 3.95
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.37 3.52

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Jun-21 31-Mar-21
BXP’s Share of interest expense 1 $ 105,772 $ 107,839
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,673 3,725
Add:
BXP’s Share of capitalized interest 1 14,066 12,528
BXP’s Share of maintenance capital expenditures 1 22,145 29,595
Hotel improvements, equipment upgrades and replacements 3 31
Preferred dividends/distributions — 2,560
Total Fixed Charges (A) $ 136,867 $ 147,382
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 386,688 $ 405,181
Fixed Charge Coverage Ratio (B÷A) 2.83 2.75

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

2For a qualitative reconciliation of BXP’s Share of EBITDAre – cash, see page 29.

Q2 2021
Consolidated joint ventures

d

as of June 30, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,206,816 $ 2,265,291 $ 5,472,107
Cash and cash equivalents 145,182 190,655 335,837
Other assets 276,984 327,672 604,656
Total assets $ 3,628,982 $ 2,783,618 $ 6,412,600
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,279,235 $ 622,440 $ 2,901,675
Other liabilities 104,232 93,078 197,310
Total liabilities 2,383,467 715,518 3,098,985
Equity:
Boston Properties, Inc. 748,858 839,298 1,588,156
Noncontrolling interests 496,657 1,228,802 1,725,459 2
Total equity 1,245,515 2,068,100 3,313,615
Total liabilities and equity $ 3,628,982 $ 2,783,618 $ 6,412,600
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 58,073 $ 85,795 $ 143,868
Partners’ share of consolidated debt 3 $ 911,781 4 $ 280,098 $ 1,191,879

_____________

1Certain balances contain amounts that eliminate in consolidation.

2Amount excludes preferred shareholders’ capital of approximately $0.1 million.

3Amounts represent the partners’ share based on their respective ownership percentages.

4Amount adjusted for basis differentials.

Q2 2021
Consolidated joint ventures (continued)

for the three months ended June 30, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 69,877 $ 93,559 $ 163,436
Write-offs associated with accounts receivable, net — — —
Straight-line rent 2,238 4,752 6,990
Write-offs associated with straight-line rent, net — (149) (149)
Fair value lease revenue (545) 81 (464)
Termination income — (6) (6)
Total lease revenue 71,570 98,237 169,807
Parking and other — 1,001 1,001
Insurance proceeds — 418 2 418
Total rental revenue 3 71,570 99,656 171,226
Expenses
Operating 24,503 34,857 59,360
Restoration expenses related to insurance claim — 402 2 402
Total expenses 24,503 35,259 59,762
Net Operating Income (NOI) 47,067 64,397 111,464
Other income (expense)
Interest and other income — 89 89
Interest expense (21,143) (7,758) (28,901)
Depreciation and amortization expense (15,683) (23,040) (38,723)
General and administrative expense (63) (95) (158)
Total other income (expense) (36,889) (30,804) (67,693)
Net income $ 10,178 $ 33,593 $ 43,771

FUNDS FROM OPERATIONS (FFO)

BXP’s nominal ownership percentage 60% 55%
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of FFO (The GM Building) Atlantic Wharf Office Joint Ventures
Net income $ 10,178 $ 33,593 $ 43,771
Add: Depreciation and amortization expense 15,683 23,040 38,723
Entity FFO $ 25,861 $ 56,633 $ 82,494
Partners’ NCI 4 $ 3,171 $ 13,993 $ 17,164
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 6,569 10,544 17,113
Partners’ share FFO 4 $ 9,740 $ 24,537 $ 34,277
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,007 $ 19,600 $ 26,607
Depreciation and amortization expense - BXP’s basis difference 42 389 431
BXP’s share of depreciation and amortization expense 9,072 12,107 21,179
BXP’s share of FFO $ 16,121 $ 32,096 $ 48,217
Q2 2021
--- ---
Consolidated joint ventures (continued)

_____________

1 Lease revenue includes recoveries from tenants and service income from tenants.

2 Amounts relate to damage at one of the Company’s properties in New York City due to a water main break.

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4 Amounts represent the partners’ share based on their respective ownership percentages and are adjusted for basis differentials and the allocations of management and other fees and depreciation and amortization related to capitalized fees.

Q2 2021
Unconsolidated joint ventures 1

as of June 30, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 56,589 136,976 September 5, 2023 1.61 % 1.82 %
Podium 50.00 % 49,006 87,077 September 6, 2021 2.35 % 2.84 %
Hub50House 50.00 % 48,520 88,021 April 19, 2022 2.10 % 2.39 %
Hotel Air Rights 50.00 % 11,316 — — — % — %
1265 Main Street 50.00 % 3,757 18,309 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 157,593 163,827 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 229,564 274,686 August 9, 2027 3.56 % 3.58 %
Beach Cities Media Center 50.00 % 27,145 — — — % — %
New York
Dock 72 3 50.00 % 29,413 97,542 December 18, 2023 3.10 % 3.32 %
3 Hudson Boulevard 4 25.00 % 116,848 19,968 July 13, 2023 3.60 % 3.68 %
San Francisco
Platform 16 55.00 % 108,241 — — — % — %
Gateway Commons 5 50.00 % 331,389 — — — % — %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 59,208 98,150 April 26, 2023 1.35 % 1.89 %
1001 6th Street 50.00 % 42,495 — — — % — %
Market Square North 50.00 % (2,606) 62,050 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 34,505 — — — % — %
500 North Capitol Street, N.W. 30.00 % (7,467) 31,466 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,191) 54,581 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (13,223) 57,820 July 7, 2022 5.40 % 6.90 %
1,270,102
Investments with deficit balances reflected within Other Liabilities 35,487
Investments in Unconsolidated Joint Ventures $ 1,305,589
Mortgage/Construction Loans Payable, Net $ 1,190,473

chart-059c0679bc5a4bac987a.jpg

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 54.40 % 2.47 % 2.89 % 1.8
Fixed Rate Debt 45.60 % 3.76 % 3.84 % 5.1
Total Debt 100.00 % 3.06 % 3.32 % 3.3
Q2 2021
--- ---
Unconsolidated joint ventures (continued) 1

_____________

1Amounts represent BXP’s share based on its ownership percentage.

2The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees.

3 The property includes net equity balances from the amenity joint venture.

4 The Company has provided $80.0 million of mortgage financing to the joint venture. The loan has been reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.

5 As a result of the partner’s deferred contribution, the Company owned an approximately 53% interest in the joint venture at June 30, 2021. Future development projects will be owned 49% by the Company and 51% by its partner.

Q2 2021
Unconsolidated joint ventures (continued)

for the three months ended June 30, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 10,365 $ 29,371 $ 3,213 $ 11,030 $ 26,436 $ 80,415
Write-offs associated with accounts receivable, net — — — — — —
Straight-line rent 1,365 2,487 233 396 597 5,078
Write-offs associated with straight-line rent, net — — — — — —
Fair value lease revenue — 342 — 45 — 387
Termination income 1,417 — — — — 1,417
Total lease revenue 13,147 32,200 3,446 11,471 27,033 87,297
Parking and other 13 2,614 — 1 1,028 3,656
Total rental revenue 3 13,160 34,814 3,446 11,472 28,061 90,953
Expenses
Operating 5,913 12,060 3,196 4,307 11,187 36,663
Net operating income/(loss) 7,247 22,754 250 7,165 16,874 54,290
Other income/(expense)
Development and management services revenue — — 259 5 2 266
Interest and other income — 5 — 2 — 7
Interest expense (2,787) (11,922) (1,703) 4 (9,228) (25,636)
Depreciation and amortization expense (4,793) (12,550) (2,701) (5,511) (8,072) (33,627)
General and administrative expense (9) (74) 11 12 (64) (124)
Total other income/(expense) (7,589) (24,541) (4,134) (5,488) (17,362) (59,114)
Net income/(loss) $ (342) $ (1,787) $ (3,884) $ 1,677 $ (488) $ (4,824)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (171) $ (1,131) $ (1,898) $ 882 $ 181 4 $ (2,137)
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 8 6 $ — $ 99
Write-offs associated with straight-line rent — — — — — —
Fair value lease revenue — 301 5 — (233) 6 — 68
Termination income — — — — — —
Depreciation and amortization expense (36) (1,052) 5 372 1,379 6 (66) 597
Total basis differential 7 (36) (660) 5 372 1,154 6 (66) 764
Income/(loss) from unconsolidated joint ventures (207) (1,791) (1,526) 2,036 115 4 (1,373)
Add:
BXP’s share of depreciation and amortization expense 2,431 7,709 979 1,437 2,794 4 15,350
BXP’s share of FFO $ 2,224 $ 5,918 $ (547) $ 3,473 $ 2,909 $ 13,977

_____________

1 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 20-23.

2 Lease revenue includes recoveries from tenants and service income from tenants.

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4 Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement of 901 New York Avenue.

5 The Company’s purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this region.

6 The Company’s purchase price allocation under ASC 805 for Gateway Commons differs from the historical basis of the venture resulting in the majority of the basis differential for this region.

7 Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.

Q2 2021
Lease expirations - All in-service properties1, 2, 3

as of June 30, 2021

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 957,021 50,590,335 56.87 2.37 % 4
2022 2,691,562 145,109,907 61.70 6.27 %
2023 2,089,178 129,594,747 70.96 4.87 %
2024 3,716,449 210,962,317 63.33 8.88 %
2025 2,579,071 156,114,597 65.68 6.34 %
2026 3,686,655 221,205,067 76.35 7.73 %
2027 2,151,438 129,294,050 67.32 5.12 %
2028 2,396,637 156,691,522 72.01 5.80 %
2029 2,679,015 162,579,904 69.54 6.24 %
2030 2,224,415 158,174,992 73.92 5.71 %
Thereafter 12,361,200 819,394,961 80.24 27.23 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 178,733 5,566,143 31.95 9.30 % 4
2022 163,674 13,894,082 91.04 8.14 %
2023 149,302 8,312,063 56.12 7.90 %
2024 144,838 14,190,076 103.54 7.31 %
2025 97,919 6,010,612 70.86 4.53 %
2026 110,515 16,980,322 168.21 5.39 %
2027 94,759 11,314,413 124.80 4.84 %
2028 113,254 8,073,289 71.96 5.99 %
2029 127,447 10,235,129 98.28 5.56 %
2030 196,925 9,830,889 61.82 8.49 %
Thereafter 498,804 52,965,410 146.73 19.26 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 1,135,754 56,156,478 52.79 2.70 % 4
2022 2,855,236 159,003,989 63.49 6.36 %
2023 2,238,480 137,906,810 69.85 5.02 %
2024 3,861,287 225,152,393 64.92 8.81 %
2025 2,676,990 162,125,209 65.86 6.25 %
2026 3,797,170 238,185,389 79.44 7.62 %
2027 2,246,197 140,608,463 69.92 5.11 %
2028 2,509,891 164,764,811 72.01 5.81 %
2029 2,806,462 172,815,033 70.77 6.20 %
2030 2,421,340 168,005,881 73.08 5.84 %
Thereafter 12,860,004 872,360,371 82.51 26.85 %

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units and hotel.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 343,927 334,841 4
2022 948,578 913,750
2023 770,169 705,317
2024 921,447 891,184
2025 1,084,470 1,065,357
2026 1,282,231 1,043,172
2027 682,387 674,587
2028 1,135,432 1,135,432
2029 722,793 626,814
2030 1,213,815 1,207,142
Thereafter 3,643,611 3,128,338

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 156,883 156,881 4
2022 41,032 35,114
2023 44,835 44,835
2024 81,404 81,404
2025 38,874 38,874
2026 24,494 24,494
2027 59,909 59,909
2028 45,230 45,230
2029 56,791 55,441
2030 88,800 54,405
Thereafter 110,165 70,055

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 500,810 491,722 4
2022 989,610 948,864
2023 815,004 750,152
2024 1,002,851 972,588
2025 1,123,344 1,104,231
2026 1,306,725 1,067,666
2027 742,296 734,496
2028 1,180,662 1,180,662
2029 779,584 682,255
2030 1,302,615 1,261,547
Thereafter 3,753,776 3,198,393

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units and hotel.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 179,636 179,636 4
Q3 2021 69,768 69,768
Q4 2021 94,523 85,437
Total 2021 343,927 334,841
Q1 2022 205,822 187,484
Q2 2022 132,105 132,074
Q3 2022 177,530 163,690
Q4 2022 433,121 430,503
Total 2022 948,578 913,750

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 1,725 1,725 4
Q3 2021 153,181 153,181
Q4 2021 1,977 1,975
Total 2021 156,883 156,881
Q1 2022 7,782 7,467
Q2 2022 9,287 9,287
Q3 2022 23,963 18,360
Q4 2022 — —
Total 2022 41,032 35,114

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 181,361 181,361 4
Q3 2021 222,949 222,949
Q4 2021 96,500 87,412
Total 2021 500,810 491,722
Q1 2022 213,604 194,951
Q2 2022 141,392 141,361
Q3 2022 201,493 182,050
Q4 2022 433,121 430,503
Total 2022 989,610 948,864

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units and hotel.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,997 3,298 4
2022 48,415 26,343
2023 94,066 51,736
2024 129,895 71,442
2025 6,475 3,561
2026 452,741 249,008
2027 — —
2028 301,388 155,984
2029 350,492 175,246
2030 — —
Thereafter 418,223 209,112

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 7,576 3,788
2022 — —
2023 1,405 703
2024 4,333 2,283
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
Thereafter 17,993 8,997

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 13,573 7,086 4
2022 48,415 26,343
2023 95,471 52,439
2024 134,228 73,725
2025 23,693 12,942
2026 458,568 252,213
2027 — —
2028 301,388 155,984
2029 388,610 196,211
2030 5,283 2,906
Thereafter 436,216 218,109

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 1,177 647 4
Q3 2021 — —
Q4 2021 4,820 2,651
Total 2021 5,997 3,298
Q1 2022 1,809 995
Q2 2022 18,031 9,917
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 48,415 26,343

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 7,576 3,788
Q4 2021 — —
Total 2021 7,576 3,788
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 1,177 647 4
Q3 2021 7,576 3,788
Q4 2021 4,820 2,651
Total 2021 13,573 7,086
Q1 2022 1,809 995
Q2 2022 18,031 9,917
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 48,415 26,343

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 176,997 134,254 4
2022 634,069 531,568
2023 380,197 292,013
2024 1,300,663 1,056,650
2025 583,774 519,878
2026 726,316 532,789
2027 483,817 400,264
2028 273,412 251,366
2029 630,080 603,713
2030 597,658 564,401
Thereafter 4,036,102 3,018,761

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 2,562 1,823
2022 27,093 27,022
2023 — —
2024 11,244 8,623
2025 — —
2026 22,954 19,030
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
Thereafter 264,979 190,433

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 179,559 136,077 4
2022 661,162 558,590
2023 380,197 292,013
2024 1,311,907 1,065,273
2025 583,774 519,878
2026 749,270 551,819
2027 483,817 400,264
2028 273,412 251,366
2029 633,215 606,848
2030 600,553 566,454
Thereafter 4,301,081 3,209,194

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 9,298 9,298 4
Q3 2021 112,448 69,705
Q4 2021 55,251 55,251
Total 2021 176,997 134,254
Q1 2022 85,970 70,322
Q2 2022 76,098 60,452
Q3 2022 363,940 292,733
Q4 2022 108,061 108,061
Total 2022 634,069 531,568

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 2,562 1,823
Q4 2021 — —
Total 2021 2,562 1,823
Q1 2022 — —
Q2 2022 178 107
Q3 2022 26,915 26,915
Q4 2022 — —
Total 2022 27,093 27,022

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 9,298 9,298 4
Q3 2021 115,010 71,528
Q4 2021 55,251 55,251
Total 2021 179,559 136,077
Q1 2022 85,970 70,322
Q2 2022 76,276 60,559
Q3 2022 390,855 319,648
Q4 2022 108,061 108,061
Total 2022 661,162 558,590

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 223,867 217,078
2022 676,135 546,269
2023 624,126 566,949
2024 706,203 670,335
2025 493,849 484,105
2026 665,003 577,554
2027 406,253 402,930
2028 499,859 487,603
2029 259,888 241,604
2030 269,363 267,319
Thereafter 1,541,606 1,527,284

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,196 5,196
2022 31,823 31,823
2023 39,017 39,017
2024 3,704 3,704
2025 24,889 24,889
2026 12,444 12,444
2027 9,260 9,260
2028 9,722 9,722
2029 9,944 9,944
2030 4,590 4,590
Thereafter 45,578 45,578

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 229,063 222,274 66.51
2022 707,958 578,092
2023 663,143 605,966
2024 709,907 674,039
2025 518,738 508,994
2026 677,447 589,998
2027 415,513 412,190
2028 509,581 497,325
2029 269,832 251,548
2030 273,953 271,909
Thereafter 1,587,184 1,572,862

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q2 2021
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 80,054 77,990
Q4 2021 143,813 139,088
Total 2021 223,867 217,078
Q1 2022 111,137 110,108
Q2 2022 315,457 202,800
Q3 2022 164,700 154,220
Q4 2022 84,841 79,141
Total 2022 676,135 546,269

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 821 821
Q4 2021 4,375 4,375
Total 2021 5,196 5,196
Q1 2022 4,816 4,816
Q2 2022 — —
Q3 2022 3,783 3,783
Q4 2022 23,224 23,224
Total 2022 31,823 31,823

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 80,875 78,811
Q4 2021 148,188 143,463
Total 2021 229,063 222,274
Q1 2022 115,953 114,924
Q2 2022 315,457 202,800
Q3 2022 168,483 158,003
Q4 2022 108,065 102,365
Total 2022 707,958 578,092

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q2 2021
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 206,233 200,111
2022 384,365 334,023
2023 220,620 210,315
2024 658,241 641,649
2025 410,503 303,968
2026 560,364 494,703
2027 578,981 442,666
2028 186,546 145,599
2029 715,762 690,431
2030 143,579 100,907
Thereafter 2,721,658 2,327,809

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 6,516 6,516
2022 63,726 58,656
2023 64,045 63,569
2024 44,153 41,032
2025 16,938 11,679
2026 44,796 41,772
2027 25,590 21,488
2028 58,302 57,235
2029 19,459 14,662
2030 95,357 95,082
Thereafter 60,089 45,905

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 212,749 206,627
2022 448,091 392,679
2023 284,665 273,884
2024 702,394 682,681
2025 427,441 315,647
2026 605,160 536,475
2027 604,571 464,154
2028 244,848 202,834
2029 735,221 705,093
2030 238,936 195,989
Thereafter 2,781,747 2,373,714

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q2 2021
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 101,436 95,314
Q4 2021 104,797 104,797
Total 2021 206,233 200,111
Q1 2022 70,300 44,141
Q2 2022 163,343 163,343
Q3 2022 86,598 62,415
Q4 2022 64,124 64,124
Total 2022 384,365 334,023

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 619 619
Q4 2021 5,897 5,897
Total 2021 6,516 6,516
Q1 2022 12,411 12,411
Q2 2022 28,399 26,172
Q3 2022 2,816 2,816
Q4 2022 20,100 17,258
Total 2022 63,726 58,656

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 102,055 95,933
Q4 2021 110,694 110,694
Total 2021 212,749 206,627
Q1 2022 82,711 56,552
Q2 2022 191,742 189,515
Q3 2022 89,414 65,231
Q4 2022 84,224 81,382
Total 2022 448,091 392,679

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q2 2021
Lease expirations - CBD properties 1, 2, 3

as of June 30, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 311,798 302,710 4
2022 266,959 226,212
2023 481,149 416,297
2024 456,683 426,420
2025 350,215 331,102
2026 1,082,658 843,599
2027 402,769 394,969
2028 941,075 941,075
2029 489,012 391,683
2030 1,280,982 1,239,914
Thereafter 3,067,270 2,569,372

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 13,573 7,086 4
2022 48,415 26,343
2023 95,471 52,439
2024 134,228 73,725
2025 23,693 12,943
2026 458,568 252,212
2027 — —
2028 301,388 155,984
2029 388,610 196,211
2030 5,283 2,906
Thereafter 436,216 218,108

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 129,671 86,189 4
2022 548,211 445,639
2023 332,530 244,346
2024 812,650 566,016
2025 360,347 296,451
2026 520,274 322,823
2027 264,311 180,758
2028 216,656 194,610
2029 586,449 560,082
2030 553,379 519,280
Thereafter 4,103,750 3,011,863

All values are in US Dollars.

Q2 2021
Lease expirations - CBD properties (continued) 1, 2, 3

as of June 30, 2021

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 82,263 82,263
2022 402,571 402,571
2023 391,110 391,110
2024 531,382 531,382
2025 305,024 305,024
2026 483,007 483,007
2027 376,606 376,606
2028 485,069 485,069
2029 233,264 233,264
2030 269,865 269,865
Thereafter 1,558,539 1,558,539

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 12,244 6,122
2022 147,158 91,747
2023 47,392 36,611
2024 184,083 164,370
2025 168,844 57,050
2026 354,193 285,508
2027 211,416 70,999
2028 164,116 122,101
2029 74,662 44,534
2030 65,835 22,888
Thereafter 1,387,825 979,792

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units and hotel.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Lease expirations - Suburban properties 1, 2, 3

as of June 30, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 189,012 189,012 4
2022 722,651 722,651
2023 333,855 333,855
2024 546,168 546,168
2025 773,129 773,129
2026 224,067 224,067
2027 339,527 339,527
2028 239,587 239,587
2029 290,572 290,572
2030 21,633 21,633
Thereafter 686,506 629,022

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 49,888 49,888 4
2022 112,951 112,951
2023 47,667 47,667
2024 499,257 499,257
2025 223,427 223,427
2026 228,996 228,996
2027 219,506 219,506
2028 56,756 56,756
2029 46,766 46,766
2030 47,174 47,174
Thereafter 197,331 197,331

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 146,800 140,011
2022 305,387 175,521
2023 272,033 214,856
2024 178,525 142,657
2025 213,714 203,970
2026 194,440 106,991
2027 38,907 35,584
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
Thereafter 28,645 14,323

All values are in US Dollars.

Q2 2021
Lease expirations - Suburban properties (continued) 1, 2, 3

as of June 30, 2021

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 200,505 200,505
2022 300,933 300,933
2023 237,273 237,273
2024 518,311 518,311
2025 258,597 258,597
2026 250,967 250,967
2027 393,155 393,155
2028 80,732 80,732
2029 660,559 660,559
2030 173,101 173,101
Thereafter 1,393,922 1,393,922

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 53.

2Includes partially placed in-service leased space. Does not include residential units and hotel.

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

4Includes square feet expiring on the last day of the current quarter.

Q2 2021
Research coverage

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed below are those analysts that, according to Thomson Reuters Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by the analysts listed below do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference below imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

Equity Research Coverage
Argus Research Company Jacob Kilstein 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs & Company, Inc. Caitlin Burrows 801.741.5459
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Peter Abramowitz / Jonathan Peterson 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Craig Mailman / Jordan Sadler 917.368.2316 / 917.368.2280
Morgan Stanley Vikram Malhotra 212.761.7064
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb / Daniel Santos 212.466.7937 / 212.466.7927
RW Baird David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Brent Dilts 212.713.1841
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
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Bank of America Merrill Lynch Andrew Molloy 646.855.6435
Barclays Peter Troisi 212.412.3695
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.715.8455 / 704.410.3252 Rating Agencies
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Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q2 2021
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Definitions

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this supplemental report and, if applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents the Company files or furnishes to the SEC from time to time.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 57.

Annualized Rental Obligations

Annualized Rental Obligations is defined as monthly Rental Obligations, as of the last day of the reporting period, multiplied by twelve (12).

Average Economic Occupancy

Average Economic Occupancy is defined as (1) total possible revenue less vacancy loss divided by (2) total possible revenue, expressed as a percentage. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue.

Average Monthly Rental Rates

Average Monthly Rental Rates are calculated by the Company as the average of the quotients obtained by dividing (A) rental revenue as determined in accordance with GAAP by (B) the number of occupied units for each month within the applicable fiscal period.

Average Physical Occupancy

Average Physical Occupancy is defined as (1) the average number of occupied units divided by (2) the total number of units, expressed as a percentage.

Debt to Market Capitalization Ratio

Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector that equals the quotient of (A) the Company’s Consolidated Debt divided by (B) the Company’s Consolidated Market Capitalization, presented as a percentage. Consolidated Market Capitalization is the sum of (x) the Company’s Consolidated Debt plus (y) the market value of the Company’s outstanding equity securities calculated using the closing price per share of common stock of the Company, as reported by the New York Stock Exchange, multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, (4) common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units, (6) common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units, (7) common units issuable upon conversion of 2015 MYLTIP Units that were issued in the form of LTIP Units, (8) common units issuable upon conversion of 2016 MYLTIP Units that were issued in the form of LTIP Units and (9) on and after February 6, 2020, which was the end of the performance period for 2017 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2017 MYLTIP Units that were issued in the form of LTIP Units, (10) on and after February 5, 2021, which was the end of the performance period for 2018 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2018 MYLTIP Units that were issued in the form of LTIP Units. The calculation of Consolidated Market Capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, 2019, 2020 and 2021 MYLTIP Units are not included.

The Company also presents BXP’s Share of Market Capitalization, which is calculated in a similar manner, except that BXP’s Share of Debt is utilized instead of the Company’s Consolidated Debt in both the numerator and the denominator. The Company presents these ratios because its degree of leverage could affect its ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of the Company, and as such will fluctuate with changes in such price and do not necessarily reflect the Company’s capacity to incur additional debt to finance its activities or its ability to manage its existing debt obligations. However, for a company like Boston Properties, Inc., whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are 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 the Company’s outstanding indebtedness.

Q2 2021
Definitions (continued)

Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate (EBITDAre)

Pursuant to the definition of Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), the Company calculates EBITDAre as net income (loss) attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus preferred stock redemption charge, net income attributable to noncontrolling interests, interest expense, losses (gains) from early extinguishments of debt, depreciation and amortization expense, impairment loss and adjustments to reflect the Company’s share of EBITDAre from unconsolidated joint ventures less gains (losses) on sales of real estate. EBITDAre is a non-GAAP financial measure. The Company uses EBITDAre internally as a performance measure and believes EBITDAre provides useful information to investors regarding its financial condition and results of operations at the corporate level because, when compared across periods, EBITDAre reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and acquisition and development activities on an unleveraged basis, providing perspective not immediately apparent from net (loss) income attributable to Boston Properties, Inc. common shareholders.

In some cases the Company also presents (A) BXP’s Share of EBITDAre – cash, which is BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense, preferred stock redemption charge, stock-based compensation expense and lease transaction costs that qualify as rent inducements, and (B) Annualized EBITDAre, which is EBITDAre for the applicable fiscal quarter ended multiplied by four (4). Presenting BXP’s Share of EBITDAre – cash allows investors to compare EBITDAre across periods without taking into account the effect of certain non-cash rental revenues, ground rent expense and stock based compensation expense. Similar to depreciation and amortization, because of historical cost accounting, fair value lease revenue may distort operating performance measures at the property level. Additionally, presenting EBITDAre excluding the impact of straight-line rent provides investors with an alternative view of operating performance at the property level that more closely reflects rental revenue generated at the property level without regard to future contractual increases in rental rates. In addition, the Company’s management believes that the presentation of Annualized EBITDAre provides useful information to investors regarding the Company’s results of operations because it enables investors to more easily compare quarterly EBITDAre to EBITDAre from full fiscal years.

The Company’s computation of EBITDAre may not be comparable to EBITDAre 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.  The Company believes that in order to facilitate a clear understanding of its operating results, EBITDAre should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. EBITDAre should not be considered a substitute to net income attributable to Boston Properties, Inc. common shareholders in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

Fixed Charge Coverage Ratio

Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense, preferred stock redemption charge, stock-based compensation expense and lease transaction costs that qualify as rent inducements. Total Fixed Charges is also a non-GAAP financial measure equal to the sum of BXP’s Share of interest expense, capitalized interest, maintenance capital expenditures, hotel improvements, equipment upgrades and replacements and preferred dividends/distributions less hedge amortization and amortization of financing costs. The Company believes that the presentation of its Fixed Charge Coverage Ratio provides investors with useful information about the Company’s financial performance as it relates to overall financial flexibility and balance sheet management. Furthermore, the Company believes that the Fixed Charge Coverage Ratio is frequently used by analysts, rating agencies and other interested parties in the evaluation of the Company’s performance as a REIT and, as a result, by presenting the Fixed Charge Coverage Ratio the Company assists these parties in their evaluations.  The Company’s calculation of its Fixed Charge Coverage Ratio may not be comparable to the ratios reported by other REITs or real estate companies that define the term differently and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.

Funds Available for Distribution (FAD) and FAD Payout Ratio

In addition to FFO, which is defined on the following page, the Company presents Funds Available for Distribution to common shareholders and common unitholders (FAD), which is a non-GAAP financial measure that is calculated by (1) adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (gains) from early extinguishments of debt, preferred stock redemption charge, stock-based compensation expense, partners’ share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences) and unearned portion of capitalized fees, (2) eliminating the effects of straight-line rent, straight-line ground rent expense adjustment, hedge amortization and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.’s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

FAD Payout Ratio is defined as distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

Q2 2021
Definitions (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on the Company’s balance sheet, impairment losses on its investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but the Company believes the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing the Company’s operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

The Company’s 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 order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

The Company treats a property as being “in-service” upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics, the Company specifies a single date for treating a property as “in-service,” which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In addition, under GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being “in-service,” and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company’s unconsolidated joint ventures.

Interest Coverage Ratio

Interest Coverage Ratio, calculated including and excluding capitalized interest, is a non-GAAP financial measure equal to BXP’s Share of EBITDAre – cash divided by Adjusted interest expense. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense, preferred stock redemption charge, stock-based compensation expense and lease transaction costs that qualify as rent inducements. Adjusted interest expense excluding capitalized interest is equal to BXP’s Share of interest expense less (1) BXP’s Share of hedge amortization and (2) BXP’s Share of amortization of financing costs. Adjusted interest expense including capitalized interest is calculated in the same manner but adds back BXP’s Share of capitalized interest. The Company believes that the presentation of its Interest Coverage Ratio provides useful information about the Company’s financial condition because it provides investors additional information on the Company’s ability to meet its debt obligations and incur additional indebtedness. In addition, by analyzing interest coverage ratios over a period of time, trends may emerge that provide investors a better sense of whether a company’s financial condition is improving or declining. The ratios may also be used to compare the financial condition of different companies, which can help when making an investment decision. The Company presents its Interest Coverage Ratio in two ways - including capitalized interest and excluding capitalized interest. GAAP requires the capitalization of interest expense during development. Therefore, for a company like Boston Properties, Inc. that is an active developer of real estate, presenting the Interest Coverage Ratio (excluding capitalized interest) provides an alternative measure of financial condition that may be more indicative of the Company’s ability to meet its interest expense obligations and therefore its overall financial condition. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.

Market Rents

Market Rents used by the Company in calculating Average Economic Occupancy are based on the current market rates set by the managers of the Company’s residential properties based on their experience in renting their residential property’s units and publicly available market data. Trends in market rents for a region as reported by others could therefore vary materially. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Net Debt

Net Debt is equal to (A) the Company’s consolidated debt plus special dividends payable (if any) less (B) cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s). The Company believes that the presentation of Net Debt provides useful information to investors because the Company reviews Net Debt as part of the management of its overall financial flexibility, capital structure and leverage. In particular, Net Debt is an important component of the Company’s ratio of BXP’s Share of Net Debt to BXP’s Share of EBITDAre.  BXP’s Share of Net Debt is calculated in a similar manner to Net Debt, except that BXP’s Share of Debt and BXP’s Share of cash are utilized instead of the Company’s consolidated debt and cash in the calculation. The Company believes BXP’s Share of Net Debt to BXP’s Share of EBITDAre is useful to investors because it provides an alternative measure of the Company’s financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets. Furthermore, certain debt rating agencies, creditors and credit analysts monitor the Company’s Net Debt as part of their assessments of its business. The Company may utilize a considerable portion of its cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s) may not be solely controlled by the Company. The deduction of these items from consolidated debt in the calculation of Net Debt therefore should not be understood to mean that these items are available exclusively for debt reduction at any given time.

Q2 2021
Definitions (continued)

Net Operating Income/(Loss) (NOI)

Net operating income/(loss) (NOI) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus (1) preferred stock redemption charge, preferred dividends, net income attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, impairment losses, depreciation and amortization expense, losses from early extinguishments of debt and interest expense, less (2) development and management services revenue, direct reimbursements of payroll and related costs from management services contracts, income (loss) from unconsolidated joint ventures, gains (losses) on sales of real estate, gains (losses) from investments in securities and interest and other income (loss). In some cases, the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, straight-line ground rent expense adjustment and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

The Company uses these measures internally as performance measures and believes they provide useful information to investors regarding the Company’s results of operations and financial condition because, when compared across periods, they reflect the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. Presenting NOI – cash allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and ground rent expenses. Similar to depreciation and amortization expense, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of the straight-lining of rent provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated at the property level on an unleveraged basis. Presenting NOI measures that exclude termination income provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.

Rental Obligations

Rental Obligations is defined as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from tenants under existing leases. These amounts exclude rent abatements.

Rental Revenue

Rental Revenue is equal to Total revenue, the most directly comparable GAAP financial measure, less development and management services revenue and direct reimbursements of payroll and related costs from management services contracts. The Company uses Rental Revenue internally as a performance measure and in calculating other non-GAAP financial measures (e.g., NOI), which provides investors with information regarding our performance that is not immediately apparent from the comparable non-GAAP measures and allows investors to compare operating performance between periods. The Company also presents Rental Revenue (excluding termination income) because termination income can distort the results for any given period because it generally represents multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and does not reflect the core ongoing operating performance of the Company’s properties.

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 20 - 23 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

Q2 2021
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Jun-21 31-Mar-21
Revenue $ 713,807 $ 713,695
Partners’ share of revenue from consolidated joint ventures (JVs) (73,473) (75,274)
BXP’s share of revenue from unconsolidated JVs 42,939 42,401
BXP’s Share of revenue $ 683,273 $ 680,822
Straight-line rent 1 $ 31,267 $ 7,730
Partners’ share of straight-line rent from consolidated JVs 1 (2,966) 5,067
BXP’s share of straight-line rent from unconsolidated JVs 2,554 804
BXP’s Share of straight-line rent 1 $ 30,855 $ 13,601
Write-offs associated with accrued rent (all of which was included within straight-line rent), net $ (649) $ (586)
Partners’ share of write-offs associated with accrued rent from consolidated JVs (all of which was included within straight-line rent), net 67 31
BXP’s share of write-offs associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent), net — (138)
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent), net $ (582) $ (693)
Write-offs associated with accounts receivable (all of which was included within lease revenue), net $ (319) $ 208
Partners’ share of write-offs associated with accounts receivable (all of which was included within lease revenue) from consolidated JVs, net — (1)
BXP’s share of write-offs associated with accounts receivable (all of which was included within lease revenue) from unconsolidated JVs, net — (7)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue), net $ (319) $ 200
Fair value lease revenue 2 $ 731 $ 653
Partners’ share of fair value lease revenue from consolidated JVs 2 182 273
BXP’s share of fair value lease revenue from unconsolidated JVs 2 280 280
BXP’s Share of fair value lease revenue 2 $ 1,193 $ 1,206
Lease termination income $ 5,355 $ 4,269
Partners’ share of termination income from consolidated JVs 3 6
BXP’s share of termination income from unconsolidated JVs 709 —
BXP’s Share of termination income $ 6,067 $ 4,275
Non-cash termination income adjustment (fair value lease amounts) $ — $ —
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs — —
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs — —
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) $ — $ —
Parking and other revenue $ 17,864 $ 14,494
Partners’ share of parking and other revenue from consolidated JVs (450) (373)
BXP’s share of parking and other revenue from unconsolidated JVs 1,751 1,546
BXP’s Share of parking and other revenue $ 19,165 $ 15,667
Cash rent abatements and deferrals related to COVID-19 $ 7,754 $ 7,260
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs (653) (169)
BXP’s share of cash rent abatements and deferrals related to COVID-19 from unconsolidated JVs 765 2,044
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 7,866 $ 9,135
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446 Q2 2021
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
30-Jun-21 31-Mar-21
Straight-line ground rent expense adjustment $ 464 $ 932
Partners’ share of straight-line ground rent expense adjustment from consolidated JVs — —
BXP’s share of straight-line ground rent expense adjustment from unconsolidated JVs 234 234
BXP’s Share of straight-line ground rent expense adjustment $ 698 $ 1,166
Depreciation and amortization $ 183,838 $ 176,565
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,113) (16,457)
BXP’s share of depreciation and amortization from unconsolidated JVs 15,350 18,412
BXP’s Share of depreciation and amortization $ 182,075 $ 178,520
Lease transaction costs that qualify as rent inducements 3 $ 826 $ 1,859
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (327) (251)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 (631) 1,418
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ (132) $ 3,026
2nd generation tenant improvements and leasing commissions $ 75,305 $ 89,653
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (4,541) (12,330)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 11,712 358
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 82,476 $ 77,681 Maintenance capital expenditures 4 $ 23,851 $ 30,789
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (2,086) (1,517)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 380 323
BXP’s Share of maintenance capital expenditures 4 $ 22,145 $ 29,595
Interest expense $ 106,319 $ 107,902
Partners’ share of interest expense from consolidated JVs (11,945) (11,420)
BXP’s share of interest expense from unconsolidated JVs 11,398 11,357
BXP’s Share of interest expense $ 105,772 $ 107,839
Capitalized interest $ 13,014 $ 12,032
Partners’ share of capitalized interest from consolidated JVs (13) (472)
BXP’s share of capitalized interest from unconsolidated JVs 1,065 968
BXP’s Share of capitalized interest $ 14,066 $ 12,528
Amortization of financing costs $ 3,368 $ 3,441
Partners’ share of amortization of financing costs from consolidated JVs (382) (382)
BXP’s share of amortization of financing costs from unconsolidated JVs 687 666
BXP’s Share of amortization of financing costs $ 3,673 $ 3,725

_____________

1For the three months ended March 31, 2021, includes approximately $17,007, $7,653 and $9,354 for consolidated, partners’ share and BXP’s Share, respectively, related to deferred revenue from a tenant.

2Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

3Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

4Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

Q2 2021
Reconciliations (continued)

for the three months ended June 30, 2021

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 69,877 $ 93,559 $ 163,436
Write-offs associated with accounts receivable, net — — —
Straight-line rent 2,238 4,752 6,990
Write-offs associated with straight-line rent, net — (149) (149)
Fair value lease revenue (545) 81 (464)
Termination income — (6) (6)
Total lease revenue 71,570 98,237 169,807
Parking and other — 1,001 1,001
Insurance proceeds — 418 2 418
Total rental revenue 3 71,570 99,656 171,226
Expenses
Operating 24,503 34,857 59,360
Restoration expenses related to insurance claim — 402 2 402
Total expenses 24,503 35,259 59,762
Net Operating Income (NOI) 47,067 64,397 111,464
Other income (expense)
Interest and other income — 89 89
Interest expense (21,143) (7,758) (28,901)
Depreciation and amortization expense (15,683) (23,040) (38,723)
General and administrative expense (63) (95) (158)
Total other income (expense) (36,889) (30,804) (67,693)
Net income $ 10,178 $ 33,593 $ 43,771
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 4 $ 18,219 $ 28,068 $ 46,287
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 28,848 $ 36,329 $ 65,177
Unearned portion of capitalized fees 5 $ 195 $ 408 $ 603
Partners’ share of select items 4
Partners’ share of write-offs associated with accounts receivable, net $ — $ — $ —
Partners’ share of write-offs associated with straight-line rent, net $ — $ 67 $ 67
Partners’ share of parking and other revenue $ — $ 450 $ 450
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 36 $ 382
Partners’ share of depreciation and amortization related to capitalized fees $ 313 $ 351 $ 664
Partners’ share of capitalized interest $ 13 $ — $ 13
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (327) $ (327)
Partners’ share of management and other fees $ 608 $ 931 $ 1,539
Partners’ share of basis differential depreciation and amortization expense $ (17) $ (175) $ (192)
Partners’ share of basis differential interest and other adjustments $ (4) $ 17 $ 13
Reconciliation of Partners’ share of EBITDAre 6
Partners’ NCI $ 3,171 $ 13,993 $ 17,164
Add:
Partners’ share of interest expense after BXP’s basis differential 8,454 3,491 11,945
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,569 10,544 17,113
Partners’ share of EBITDAre $ 18,194 $ 28,028 $ 46,222
Q2 2021
--- ---
Reconciliations (continued)

for the three months ended June 30, 2021

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 4 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 3 $ 28,628 $ 44,845 $ 73,473
Less: Termination income — (3) (3)
Rental revenue (excluding termination income) 3 28,628 44,848 73,476
Less: Operating expenses (including partners’ share of management and other fees) 10,409 16,798 27,207
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,219 $ 28,071 $ 46,290
Rental revenue (excluding termination income) 3 $ 28,628 $ 44,848 $ 73,476
Less: Straight-line rent 895 2,071 2 2,966
Fair value lease revenue (218) 36 (182)
Add: Lease transaction costs that qualify as rent inducements — 327 327
Subtotal 27,951 43,068 71,019
Less: Operating expenses (including partners’ share of management and other fees) 10,409 16,798 27,207
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 17,542 $ 26,291 $ 43,833
Reconciliation of Partners’ share of Revenue 4
Rental revenue 3 $ 28,628 $ 44,845 $ 73,473
Add: Development and management services revenue — — —
Revenue $ 28,628 $ 44,845 $ 73,473

_________

1Lease revenue includes recoveries from tenants and service income from tenants.

2Amounts relate to damage at one of the Company’s properties in New York City due to a water main break.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4Amounts represent the partners’ share based on their respective ownership percentage.

5Capitalized fees are eliminated in consolidation and recognized over the life of the asset as depreciation and amortization are added back to the Company’s net income.

6Amounts represent the partners’ share based on their respective ownership percentages and are adjusted for basis differentials and the allocations of management and other fees and depreciation and amortization related to capitalized fees.

Q2 2021
Reconciliations (continued)

for the three months ended June 30, 2021

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 10,365 $ 29,371 $ 3,213 $ 11,030 $ 26,436 $ 80,415
Write-offs associated with accounts receivable, net — — — — — —
Straight-line rent 1,365 2,487 233 396 597 5,078
Write-offs associated with straight-line rent — — — — — —
Fair value lease revenue — 342 — 45 — 387
Termination income 1,417 — — — — 1,417
Total lease revenue 13,147 32,200 3,446 11,471 27,033 87,297
Parking and other 13 2,614 — 1 1,028 3,656
Total rental revenue 3 13,160 34,814 3,446 11,472 28,061 90,953
Expenses
Operating 5,913 12,060 3,196 4 4,307 11,187 36,663
Net operating income/(loss) 7,247 22,754 250 7,165 16,874 54,290
Other income/(expense)
Development and management services revenue — — 259 5 2 266
Interest and other income — 5 — 2 — 7
Interest expense (2,787) (11,922) (1,703) 4 (9,228) (25,636)
Depreciation and amortization expense (4,793) (12,550) (2,701) (5,511) (8,072) (33,627)
General and administrative expense (9) (74) 11 12 (64) (124)
Total other income/(expense) (7,589) (24,541) (4,134) (5,488) (17,362) (59,114)
Net income/(loss) $ (342) $ (1,787) $ (3,884) $ 1,677 $ (488) $ (4,824)
BXP’s share of write-offs associated with accounts receivable, net $ — $ — $ — $ — $ — $ —
BXP’s share of write-offs associated with straight-line rent, net $ — $ — $ — $ — $ — $ —
BXP’s share of parking and other revenue $ 7 $ 1,379 $ — $ 1 $ 364 5 $ 1,751
BXP’s share of amortization of financing costs $ 231 $ 85 $ 75 $ — $ 296 5 $ 687
BXP’s share of capitalized interest $ 533 $ — $ 206 $ — $ 326 5 $ 1,065
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ (207) $ (1,791) $ (1,526) $ 2,036 $ 115 5 $ (1,373)
Add:
BXP’s share of interest expense 1,394 6,309 852 (2) 2,845 5 11,398
BXP’s share of depreciation and amortization expense 2,431 7,709 6 979 1,437 7 2,794 5 15,350
BXP’s share of EBITDAre $ 3,618 $ 12,227 6 $ 305 $ 3,471 7 $ 5,754 5 $ 25,375 Q2 2021
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 6,581 $ 18,635 6 $ 1,723 $ 5,878 7 $ 9,988 5 $ 42,805
BXP’s share of operating expenses 2,957 6,369 1,551 2,298 4,213 5 17,388
BXP’s share of net operating income/(loss) 3,624 12,266 6 172 3,580 7 5,775 5 25,417
Less:
BXP’s share of termination income 709 — — — — 709
BXP’s share of net operating income/(loss) (excluding termination income) 2,915 12,266 172 3,580 5,775 5 24,708
Less:
BXP’s share of straight-line rent 683 1,351 6 116 219 7 185 5 2,554
BXP’s share of fair value lease revenue — 489 6 — (209) 7 — 280
Add:
BXP’s share of straight-line ground rent expense adjustment — — 234 — — 234
BXP’s share of lease transaction costs that qualify as rent inducements — (98) 73 — (606) 5 (631)
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 2,232 $ 10,328 6 $ 363 $ 3,570 7 $ 4,984 5 $ 21,477
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 6,581 $ 18,635 6 $ 1,723 $ 5,878 7 $ 9,988 5 $ 42,805
Add:
BXP’s share of development and management services revenue — — 130 3 1 134
BXP’s share of revenue $ 6,581 $ 18,635 6 $ 1,853 $ 5,881 7 $ 9,989 5 $ 42,939

_____________

1 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 20-23.

2 Lease revenue includes recoveries from tenants and service income from tenants.

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

4 Includes approximately $468 of straight-line ground rent expense.

5 Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement of 901 New York Avenue.

6 The Company’s purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this region.

7 The Company’s purchase price allocation under ASC 805 for Gateway Commons differs from the historical basis of the venture resulting in the majority of the basis differential for this region.

Q2 2021
Reconciliations (continued)

Reconciliation of Net income attributable to Boston Properties, Inc. common shareholders to

BXP’s Share of same property net operating income (NOI)

(dollars in thousands)

Three Months Ended
31-Mar-21 31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Net income attributable to Boston Properties, Inc. 100,596 500,121
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,084 57,539
Noncontrolling interest in property partnerships 16,467 19,486
Net income 128,147 577,146
Add:
Interest expense 107,902 101,591
Losses from early extinguishments of debt 898 —
Depreciation and amortization expense 176,565 171,094
Transaction costs 331 615
Payroll and related costs from management services contracts 3,505 3,237
General and administrative expense 44,959 36,454
Less:
Interest and other income (loss) 1,168 3,017
Gains (losses) from investments in securities 1,659 (5,445)
Gains on sales of real estate — 410,165
Income (loss) from unconsolidated joint ventures 5,225 (369)
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,237
Development and management services revenue 6,803 7,879
Net Operating Income (NOI) 443,947 471,653
Add:
BXP’s share of NOI from unconsolidated joint ventures 24,795 28,758
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 44,376 47,661
BXP’s Share of NOI 424,366 452,750
Less:
Termination income 4,269 2,399
BXP’s share of termination income from unconsolidated joint ventures — —
Add:
Partners’ share of termination income from consolidated joint ventures (6) 238
BXP’s Share of NOI (excluding termination income) $ 420,091 $ 450,589
Net Operating Income (NOI) $ 443,947 $ 471,653
Less:
Termination income 4,269 2,399
NOI from non Same Properties (excluding termination income) 8,307 12,955
Same Property NOI (excluding termination income) 431,371 456,299
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 44,382 47,423
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 880 136
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 24,795 28,758
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3,574 4,495
BXP’s Share of Same Property NOI (excluding termination income) $ 409,090 $ 433,275
Change in BXP’s Share of Same Property NOI (excluding termination income) $ (24,185)
Change in BXP’s Share of Same Property NOI (excluding termination income) (5.6) %
Q2 2021
--- ---
Reconciliations (continued)

Reconciliation of Net income attributable to Boston Properties, Inc. common shareholders to

BXP’s Share of same property net operating income (NOI) - cash

(dollars in thousands)

Three Months Ended
31-Mar-21 31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Net income attributable to Boston Properties, Inc. 100,596 500,121
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,084 57,539
Noncontrolling interest in property partnerships 16,467 19,486
Net income 128,147 577,146
Add:
Interest expense 107,902 101,591
Losses from early extinguishments of debt 898 —
Depreciation and amortization expense 176,565 171,094
Transaction costs 331 615
Payroll and related costs from management services contracts 3,505 3,237
General and administrative expense 44,959 36,454
Less:
Interest and other income (loss) 1,168 3,017
Gains (losses) from investments in securities 1,659 (5,445)
Gains on sales of real estate — 410,165
Income (loss) from unconsolidated joint ventures 5,225 (369)
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,237
Development and management services revenue 6,803 7,879
Net Operating Income (NOI) 443,947 471,653
Less:
Straight-line rent 1 7,730 31,430
Fair value lease revenue 653 2,991
Termination income 4,269 2,399
Add:
Straight-line ground rent expense adjustment 2 765 811
Lease transaction costs that qualify as rent inducements 3 1,859 2,399
NOI - cash (excluding termination income) 433,919 438,043
Less:
NOI - cash from non Same Properties (excluding termination income) 24,220 12,995
Same Property NOI - cash (excluding termination income) 409,699 425,048
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 49,973 42,050
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 8,517 205
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 25,363 25,020
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 4,903 3,906
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 388,703 $ 404,317
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ (15,614)
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) (3.9) %

_____________

1For the three months ended March 31, 2021, includes the straight-line impact of approximately $17,007 related to deferred revenue from a tenant.

2In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $167 and $165 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

3Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP.

Q2 2021
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Jun-20 31-Mar-20
Revenue
Lease $ 630,119 $ 710,111
Parking and other 13,946 24,504
Hotel revenue 99 6,825
Development and management services 8,125 7,879
Direct reimbursements of payroll and related costs from management services contracts 2,484 3,237
Total revenue 654,773 752,556
Expenses
Operating 109,448 127,800
Real estate taxes 130,415 135,019
Demolition costs (76) 147
Hotel 1,973 6,821
General and administrative 37,743 36,454
Payroll and related costs from management services contracts 2,484 3,237
Transaction costs 332 615
Depreciation and amortization 178,188 171,094
Total expenses 460,507 481,187
Other income (expense)
Income (loss) from unconsolidated joint ventures 1,832 (369)
Gains on sales of real estate 203,767 410,165
Gains (losses) from investments in securities 4,552 (5,445)
Interest and other income (loss) 1,305 3,017
Interest expense (107,142) (101,591)
Net income 298,580 577,146
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships 767 (19,486)
Noncontrolling interest - common units of the Operating Partnership (30,197) (57,539)
Net income attributable to Boston Properties, Inc. 269,150 500,121
Preferred dividends (2,625) (2,625)
Net income attributable to Boston Properties, Inc. common shareholders $ 266,525 $ 497,496
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 1.71 $ 3.20
Net income attributable to Boston Properties, Inc. per share - diluted $ 1.71 $ 3.20
Q2 2021
--- ---
Funds from operations (FFO) 1 - prior year

(unaudited and dollars in thousands, except per share amounts)

Three Months Ended
30-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders $ 266,525
Add:
Preferred dividends 2,625
Noncontrolling interest - common units of the Operating Partnership 30,197
Noncontrolling interests in property partnerships (767)
Net income 298,580
Add:
Depreciation and amortization expense 178,188
Noncontrolling interests in property partnerships' share of depreciation and amortization (22,480)
BXP's share of depreciation and amortization from unconsolidated joint ventures 21,012
Corporate-related depreciation and amortization (486)
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures 5,946
Gains on sales of real estate 203,767
Noncontrolling interests in property partnerships (767)
Preferred dividends 2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 263,243
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 26,335
FFO attributable to Boston Properties, Inc. common shareholders $ 236,908
Boston Properties, Inc.’s percentage share of Basic FFO 90.00 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.00 %
Basic FFO per share $ 1.52
Weighted average shares outstanding - basic 155,386
Diluted FFO per share $ 1.52
Weighted average shares outstanding - diluted 155,407

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 53.

66

Document

Exhibit 99.2

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BOSTON PROPERTIES ANNOUNCES SECOND QUARTER 2021 RESULTS; REPORTS EPS OF $0.71 AND FFO PER SHARE OF $1.72

Exceeds EPS and FFO Guidance for Q2; Announces Acquisitions to Establish a New Market Presence in Seattle, Broaden its Life Sciences Portfolio and Expand into NYC’s Midtown South Submarket

BOSTON, MA, July 27, 2021 - Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded developer, owner and manager of Class A office properties in the United States, reported results today for the second quarter ended June 30, 2021.

Financial highlights for the second quarter include:

•Net income attributable to common shareholders of $111.7 million, or $0.71 per diluted share (EPS), compared to $266.5 million, or $1.71 per diluted share, for the quarter ended June 30, 2020. The decrease in EPS in the second quarter of 2021 was due to gains on asset sales in the second quarter of 2020 that did not reoccur in 2021.

•Funds from Operations (FFO) of $268.6 million, or $1.72 per diluted share, compared to FFO of $236.9 million, or $1.52 per diluted share, for the quarter ended June 30, 2020.

◦FFO of $1.72 per diluted share was $0.12 greater than the mid-point of the Company's second quarter guidance provided on April 27, 2021, primarily due to improved portfolio performance of $0.06, higher-than-projected parking, hotel and retail income of $0.03 and higher-than-projected termination income of $0.03 in the quarter. The improved portfolio performance in the quarter included approximately $0.03 of lower-than-projected expenses that have been deferred into the third quarter of 2021.

The Company provided guidance for the third of quarter 2021 with projected EPS of $1.28 - $1.30 and projected FFO of $1.68 - $1.70 per diluted share. See “EPS and FFO per Share Guidance” below.

Second quarter and recent business highlights include:

•Signed approximately 1.2 million square feet of leases in the second quarter with a weighted-average lease term of 7.5 years. This reflects leasing volume of more than double the total square feet of leases executed in first quarter of 2021. Notable leases signed during the second quarter include:

◦a 351,000 square-foot, seven-year lease with a leading entertainment company at Colorado Center, in Santa Monica, California.

◦a 140,000 square-foot expansion lease with a technology company at Santa Monica Business Park in Santa Monica, California.

◦a 98,000 square-foot, 12-year lease with a large consulting company at Metropolitan Square in Washington, DC.

◦a 77,000 square-foot lease expansion and extension with a technology security company in Reston, Virginia.

–more–

◦a 36,000 square-foot lease extension with a technology provider in Waltham, Massachusetts.

◦a 26,000 square-foot lease extension with a legal services company at Embarcadero Center in San Francisco, California.

◦a 25,000 square-foot, 11-year lease expansion with a financial services company at 399 Park Avenue in New York, New York.

•Secured several new acquisitions during and subsequent to the quarter including:

◦Safeco Plaza, an 800,000 square-foot Class A office building in Seattle, Washington. The property is approximately 90% leased. This marks BXP’s initial entry into the Seattle market, one of the most vibrant markets in the U.S. for companies in the technology, life sciences, manufacturing and financial services sectors. The Company expects to close the acquisition in September 2021 for a purchase price of approximately $465 million. BXP expects to purchase this in a joint venture and hold up to a 51% ownership in the property.

◦360 Park Avenue South, a 450,000 square-foot 20-story office property located in the Midtown South submarket of Manhattan, New York. The property is fully leased to a single tenant who will be vacating in late 2021 providing BXP with the opportunity to complete extensive upgrades and transform the property into a premier modern building that will attract Class A clients. The Company expects to close the acquisition in December 2021 for a purchase price of approximately $300 million, including the assumption of approximately $202 million of debt and the issuance of approximately $98 million of operating partnership units.

◦Shady Grove Bio+Tech Campus, consisting of seven buildings totaling approximately 435,000 square-feet in the Shady Grove area of Rockville, Maryland, a region that is home to more than 400 companies in the biotechnology and life sciences sector. BXP plans to convert the office buildings on the campus to lab to meet current and growing demand in the region from biotechnology companies for new, Class A lab space. The Company expects to begin reconstruction of three of the buildings, which are currently vacant, promptly after closing. The Company expects to close the acquisition in August 2021 for a purchase price of approximately $116.5 million.

◦153 & 211 Second Avenue, two lab properties comprising 137,000 square-feet in Waltham, Massachusetts, a highly desirable location for leading and emerging companies in the life sciences and biotechnology sector. The Company acquired the two lab buildings in June 2021 for a gross purchase price of approximately $100 million in cash. The properties are 100% leased.

•Entered into an agreement to sell 181,191 and 201 Spring Street, in Lexington, Massachusetts for an aggregate gross sales price of $191.5 million. 181,191 and 201 Spring Street is a three-building, 333,000 square-foot complex that is 100% leased. The Company anticipates closing on the sale in September 2021.

•Established a co-investment program with Canada Pension Plan Investment Board (“CPP Investments”) and GIC for future acquisitions of select office properties in the United States. The partners have targeted an aggregate of $1.0 billion of equity to the program, with BXP and CPP Investments each allocating $250 million and GIC allocating $500 million. The partnership expects to employ leverage allowing for an initial investment capacity of approximately $2.0 billion. With these capital commitments, BXP expects to be able to

–more–

accelerate the pace at which it can pursue acquisition opportunities and extend its investment capacity.

•Amended and restated the Company’s revolving credit agreement (the “2021 Credit Facility”). The 2021 Credit Facility provides for borrowings of up to $1.5 billion through an unsecured revolving credit facility, subject to customary conditions, and expires in June 2026. For additional detail on the terms and conditions of the 2021 Credit Facility, refer to the Company's Form 8-K filed on June 16, 2021.

The pending acquisitions and dispositions described above are subject to customary closing conditions, and there can be no assurance that the Company will complete the transactions on the terms currently contemplated or at all.

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended June 30, 2021. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

The Company’s guidance for the third quarter 2021 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in this release and those referenced during the related conference call. Except as otherwise publicly disclosed, the estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), possible future write-offs or reinstatement of accounts receivable and accrued rent or possible future impairment charges. Actual EPS results may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Third Quarter 2021
Low High
Projected EPS (diluted) $ 1.28 $ 1.30
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05
Projected Company share of (gains)/losses on sales of real estate (0.65) (0.65)
Projected FFO per share (diluted) $ 1.68 $ 1.70

–more–

Boston Properties will host a conference call on Wednesday, July 28, 2021 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter 2021 results, provide a business update and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 3259478. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 3259478. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

Additionally, a copy of Boston Properties’ second quarter 2021 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at investors.bxp.com.

Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s portfolio totals 51.5 million square feet and 197 properties, including nine properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “plans,” “projects” and similar expressions that do not relate to historical matters. These statements are based on our current plans and expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond Boston Properties’ control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions or restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; the speed, effectiveness and distribution of vaccines; whether new or existing actions/or measures continue to impact the ability of our residential tenants to generate sufficient income to pay, or makes them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; and the effectiveness or lack of effectiveness of governmental relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as may be required by law.

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Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
June 30, 2021 December 31, 2020
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 22,012,095 $ 21,649,383
Construction in progress 908,061 868,773
Land held for future development 497,019 450,954
Right of use assets - finance leases 237,765 237,393
Right of use assets - operating leases 170,331 146,406
Less: accumulated depreciation (5,752,818) (5,534,102)
Total real estate 18,072,453 17,818,807
Cash and cash equivalents 557,307 1,668,742
Cash held in escrows 79,973 50,587
Investments in securities 41,476 39,457
Tenant and other receivables, net 58,624 77,411
Related party note receivable, net 77,872 77,552
Note receivables, net 19,087 18,729
Accrued rental income, net 1,172,411 1,122,502
Deferred charges, net 627,338 640,085
Prepaid expenses and other assets 46,946 33,840
Investments in unconsolidated joint ventures 1,305,589 1,310,478
Total assets $ 22,059,076 $ 22,858,190
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,901,709 $ 2,909,081
Unsecured senior notes, net 9,634,356 9,639,287
Unsecured line of credit — —
Unsecured term loan, net — 499,390
Lease liabilities - finance leases 243,381 236,492
Lease liabilities - operating leases 226,594 201,713
Accounts payable and accrued expenses 305,969 336,264
Dividends and distributions payable 169,718 171,082
Accrued interest payable 107,386 106,288
Other liabilities 370,990 412,084
Total liabilities 13,960,103 14,511,681
Commitments and contingencies — —
Redeemable deferred stock units 8,980 6,897
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 — 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,214,859 and 155,797,725 issued and 156,135,959 and 155,718,825 outstanding at June 30, 2021 and December 31, 2020, respectively 1,561 1,557
Additional paid-in capital 6,405,916 6,356,791
Dividends in excess of earnings (612,247) (509,653)
Treasury common stock at cost, 78,900 shares at June 30, 2021 and December 31, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (43,166) (49,890)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,749,342 5,996,083
Noncontrolling interests:
Common units of the Operating Partnership 615,308 616,596
Property partnerships 1,725,343 1,726,933
Total equity 8,089,993 8,339,612
Total liabilities and equity $ 22,059,076 $ 22,858,190

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended June 30, Six months ended June 30,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Revenue
Lease $ 684,025 $ 630,119 $ 1,369,842 $ 1,340,230
Parking and other 18,282 13,946 35,220 38,450
Hotel revenue 1,561 99 2,193 6,924
Development and management services 7,284 8,125 14,087 16,004
Direct reimbursements of payroll and related costs from management services contracts 2,655 2,484 6,160 5,721
Total revenue 713,807 654,773 1,427,502 1,407,329
Expenses
Operating
Rental 248,703 239,787 506,092 502,753
Hotel 1,996 1,973 4,047 8,794
General and administrative 38,405 37,743 83,364 74,197
Payroll and related costs from management services contracts 2,655 2,484 6,160 5,721
Transaction costs 751 332 1,082 947
Depreciation and amortization 183,838 178,188 360,403 349,282
Total expenses 476,348 460,507 961,148 941,694
Other income (expense)
Income (loss) from unconsolidated joint ventures (1,373) 1,832 3,852 1,463
Gains on sales of real estate 7,756 203,767 7,756 613,932
Interest and other income (loss) 1,452 1,305 2,620 4,322
Gains (losses) from investments in securities 2,275 4,552 3,934 (893)
Losses from early extinguishment of debt — — (898) —
Interest expense (106,319) (107,142) (214,221) (208,733)
Net income 141,250 298,580 269,397 875,726
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (17,164) 767 (33,631) (18,719)
Noncontrolling interest—common units of the Operating Partnership (12,383) (30,197) (23,422) (87,525)
Net income attributable to Boston Properties, Inc. 111,703 269,150 212,344 769,482
Preferred dividends — (2,625) (2,560) (5,250)
Preferred stock redemption charge — — (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525 $ 203,372 $ 764,232
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.72 $ 1.71 $ 1.30 $ 4.92
Weighted average number of common shares outstanding 156,107 155,386 156,016 155,199
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.71 $ 1.71 $ 1.30 $ 4.91
Weighted average number of common and common equivalent shares outstanding 156,519 155,407 156,307 155,333

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended June 30, Six months ended June 30,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525 $ 203,372 $ 764,232
Add:
Preferred stock redemption charge — — 6,412 —
Preferred dividends — 2,625 2,560 5,250
Noncontrolling interest - common units of the Operating Partnership 12,383 30,197 23,422 87,525
Noncontrolling interests in property partnerships 17,164 (767) 33,631 18,719
Net income 141,250 298,580 269,397 875,726
Add:
Depreciation and amortization expense 183,838 178,188 360,403 349,282
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,113) (22,480) (33,570) (40,107)
Company’s share of depreciation and amortization from unconsolidated joint ventures 15,350 21,012 33,762 39,344
Corporate-related depreciation and amortization (444) (486) (884) (955)
Less:
Gains on sale of investment included within income (loss) from unconsolidated joint ventures — 5,946 10,257 5,946
Gains on sales of real estate 7,756 203,767 7,756 613,932
Noncontrolling interests in property partnerships 17,164 (767) 33,631 18,719
Preferred dividends — 2,625 2,560 5,250
Preferred stock redemption charge — — 6,412 —
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 297,961 263,243 568,492 579,443
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 29,319 26,335 55,940 58,430
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 268,642 $ 236,908 $ 512,552 $ 521,013
Boston Properties, Inc.’s percentage share of funds from operations - basic 90.16 % 90.00 % 90.16 % 89.92 %
Weighted average shares outstanding - basic 156,107 155,386 156,016 155,199
FFO per share basic $ 1.72 $ 1.52 $ 3.29 $ 3.36
Weighted average shares outstanding - diluted 156,519 155,407 156,307 155,333
FFO per share diluted $ 1.72 $ 1.52 $ 3.28 $ 3.35

(1)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) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on our balance sheet, impairment losses on our investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures and real estate-related depreciation and amortization. FFO is a non-GAAP financial measure, but we believe the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing our operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

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 order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Leased by Location
June 30, 2021 December 31, 2020
Boston 92.9 % 94.8 %
Los Angeles 83.9 % 93.5 %
New York 87.2 % 87.4 %
San Francisco 87.6 % 91.0 %
Washington, DC 85.3 % 84.4 %
Total Portfolio 88.6 % 90.1 %

AT THE COMPANY

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

(617) 236-3352

Sara Buda

Vice President, Investor Relations

(617) 236-3429

sbuda@bxp.com

#

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