Equibles

8-K

BXP, Inc. (BXP)

8-K 2022-05-02 For: 2022-05-02
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): May 2, 2022

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 May 2, 2022, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the first quarter of 2022. 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 endedMarch31, 2022.
*99.2 Press release datedMay2, 2022.
*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: May 2, 2022

Document

Exhibit 99.1

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Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2022

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, 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 53.1 million square feet and 201 properties, including eleven properties under construction/redevelopment. The Company’s properties include 182 office properties, 12 retail properties, six residential properties and one hotel. BXP 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. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned a tenth consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, 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 BXP’s 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 (1) the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, (2) the impact of geopolitical conflicts, including the ongoing war in Ukraine, and (3) the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, increasing interest rates, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and tenant behavior, as well as possible future governmental responses; risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets; risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets; 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 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. BXP 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 52.

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’s 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 56.

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 Helen Han
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 hhan@bxp.com
(t) 617.236.3429
Michael E. LaBelle
Executive Vice President, Chief Financial Officer
at 617.236.3352 or
mlabelle@bxp.com

(Cover photo: Rendering of Platform 16, San Jose, CA)

Q1 2022
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 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 33
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 36
Boston 37
Los Angeles 39
New York 41
San Francisco 43
Washington, DC 45
CBD 47
Suburban 49
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 51
Definitions 52
Reconciliations 56
Consolidated Income Statement - Prior Year 64
Q1 2022
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Company profile

SNAPSHOT

(as of March 31, 2022)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 201
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 53.1 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, 2 174.9 million
Closing Price, at the end of the quarter $128.80 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 3.0%
Consolidated Market Capitalization 2 $35.5 billion
BXP’s Share of Market Capitalization 2, 3 $35.6 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

BXP’s 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, Seattle, and Washington, DC;

•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 ability to make new investments at opportune times; 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
Carol B. Einiger Robert E. Pester Executive Vice President, San Francisco Region
Diane J. Hoskins Chair of Sustainability Committee Hilary Spann Executive Vice President, New York Region
Mary E. Kipp Peter V. Otteni Executive Vice President, Co-Head of the Washington, DC Region
Matthew J. Lustig Chair of Nominating & Corporate Governance Committee John J. Stroman Executive Vice President, Co-Head of the Washington, DC Region
David A. Twardock Chair of Audit Committee Jonathan D. Lange Senior Vice President, Los Angeles Region
William H. Walton, III Frank D. Burt Senior Vice President, Chief Legal Officer
Donna D. Garesche Senior Vice President, Chief Human Resources Officer
Michael R. Walsh Senior Vice President, Chief Accounting Officer
James J. Whalen Senior Vice President, 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 52.

Q1 2022
Guidance and assumptions

GUIDANCE

The Company’s guidance for the second quarter and full year 2022 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. 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 May 2, 2022 and those referenced during the Company’s conference call scheduled for May 3, 2022.  Except as otherwise publicly disclosed, the estimates do not include the impacts of any potential (1) capital markets activity, (2) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (3) 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 or 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 54. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Second Quarter 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.79 $ 0.81 $ 5.32 $ 5.42
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05 4.30 4.30
Projected Company share of (gains)/losses on sales of real estate — — (2.22) (2.22)
Projected FFO per share (diluted) $ 1.84 $ 1.86 $ 7.40 $ 7.50

ASSUMPTIONS

(dollars in thousands)

Full Year 2022
Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 90.00 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) 2.75 % 3.75 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 5.00 % 6.00 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 95,000 $ 105,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (33,000) $ (27,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 120,000 $ 135,000
Termination income $ 3,000 $ 5,000
Other revenue (expense):
Development, management services and other revenue $ 26,000 $ 33,000
General and administrative expense 1 $ (157,000) $ (151,000)
Net interest expense $ (420,000) $ (410,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (144,000) $ (140,000)

_______________

1 Excludes estimated changes in the market value of the Company’s deferred compensation plan and gains (losses) from investments in securities.

Q1 2022
Financial highlights

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

Three Months Ended
31-Mar-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.91 $ 1.18
FFO attributable to Boston Properties, Inc. 1 $ 286,136 $ 242,963
Diluted FFO per share 1 $ 1.82 $ 1.55
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 248,032 $ 143,195
Selected items:
Revenue $ 754,307 $ 731,063
Recoveries from tenants $ 115,910 $ 104,194
Service income from tenants $ 1,787 $ 2,428
BXP’s Share of revenue 3 $ 735,572 $ 708,519
BXP’s Share of straight-line rent 3 $ 35,103 $ 30,129
BXP’s Share of fair value lease revenue 3, 4 $ 2,185 $ 2,058
BXP’s Share of termination income 3 $ 2,463 $ 76
Losses from early extinguishments of debt $ — $ (44,284)
Ground rent expense $ 3,155 $ 3,192
Capitalized interest $ 13,740 $ 13,839
Capitalized wages $ 4,050 $ 3,594
Income (loss) from unconsolidated joint ventures $ 2,189 $ (825)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 24,233 $ 19,576
Net income attributable to noncontrolling interests in property partnerships $ 17,549 $ 18,204
FFO attributable to noncontrolling interests in property partnerships 6 $ 35,202 $ 35,686
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 1,245 $ 1,457
Below-market rents (included within Other Liabilities) $ 21,095 $ 22,962
Accrued rental income liability (included within Other Liabilities) $ 118,460 $ 129,390
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 4.16 4.00
Interest Coverage Ratio (including capitalized interest) 7 3.60 3.50
Fixed Charge Coverage Ratio 8 3.31 2.81
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.50 7.46
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 5.5 % 17.9 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 4.8 % 10.2 %
FAD Payout Ratio 2 69.14 % 119.06 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.5 % 64.0 %
Occupancy of In-Service Properties 89.1 % 88.8 %
Capitalization:
Consolidated Debt $ 13,010,124 $ 12,896,609
BXP’s Share of Debt 10 $ 13,078,509 $ 12,923,917
Consolidated Market Capitalization $ 35,542,525 $ 33,006,115
Consolidated Debt/Consolidated Market Capitalization 36.60 % 39.07 %
BXP’s Share of Market Capitalization 10 $ 35,610,910 $ 33,033,423
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 36.73 % 39.12 %

_____________

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

2For the three months ended December 31, 2021, includes approximately $42.9 million of cash losses related to the early extinguishment of debt in connection with the early redemption of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that were scheduled to mature in February 2023. For 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 52.

4Represents 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.

5For a quantitative reconciliation for the three months ended March 31, 2022, see page 35.

6For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

7For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see page 30.

8For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see page 29.

9For a quantitative reconciliation for the three months ended March 31, 2022 and December 31, 2021, see pages 10, 62 and 63.

10For a quantitative reconciliation for March 31, 2022, see page 26.

Q1 2022
Consolidated Balance Sheets

(unaudited and in thousands)

31-Mar-22 31-Dec-21
ASSETS
Real estate $ 22,472,940 $ 22,298,103
Construction in progress 846,775 894,172
Land held for future development 582,511 560,355
Right of use assets - finance leases 237,501 237,507
Right of use assets - operating leases 169,248 169,778
Less accumulated depreciation (5,995,760) (5,883,961)
Total real estate 18,313,215 18,275,954
Cash and cash equivalents 436,271 452,692
Cash held in escrows 46,072 48,466
Investments in securities 36,032 43,632
Tenant and other receivables, net 56,132 70,186
Related party note receivable, net 78,544 78,336
Notes receivable, net 9,674 9,641
Accrued rental income, net 1,243,395 1,226,745
Deferred charges, net 609,205 618,798
Prepaid expenses and other assets 128,472 57,811
Investments in unconsolidated joint ventures 1,518,622 1,482,997
Total assets $ 22,475,634 $ 22,365,258
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,268,745 $ 3,267,914
Unsecured senior notes, net 9,486,379 9,483,695
Unsecured line of credit 255,000 145,000
Lease liabilities - finance leases 245,554 244,421
Lease liabilities - operating leases 204,677 204,561
Accounts payable and accrued expenses 304,576 320,775
Dividends and distributions payable 170,869 169,859
Accrued interest payable 90,861 94,796
Other liabilities 396,283 391,441
Total liabilities 14,422,944 14,322,462
Commitments and contingencies — —
Redeemable deferred stock units 11,031 9,568
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,790,614 and 156,623,749 issued and 156,711,714 and 156,544,849 outstanding at March 31, 2022 and December 31, 2021, respectively 1,567 1,565
Additional paid-in capital 6,509,663 6,497,730
Dividends in excess of earnings (636,421) (625,891)
Treasury common stock at cost, 78,900 shares at March 31, 2022 and December 31, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (28,485) (36,662)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,843,602 5,834,020
Noncontrolling interests:
Common units of the Operating Partnership 649,602 642,655
Property partnerships 1,548,455 1,556,553
Total equity 8,041,659 8,033,228
Total liabilities and equity $ 22,475,634 $ 22,365,258
Q1 2022
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-22 31-Dec-21
Revenue
Lease $ 718,120 $ 690,912
Parking and other 21,734 23,087
Hotel revenue 4,557 6,227
Development and management services 5,831 7,516
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,321
Total revenue 754,307 731,063
Expenses
Operating 138,723 129,615
Real estate taxes 131,527 127,125
Demolition costs 5 38
Hotel operating 4,840 5,005
General and administrative 1 43,194 33,649
Payroll and related costs from management services contracts 4,065 3,321
Transaction costs — 2,066
Depreciation and amortization 177,624 177,521
Total expenses 499,978 478,340
Other income (expense)
Income (loss) from unconsolidated joint ventures 2,189 (825)
Gains on sales of real estate 22,701 115,556
Gains (losses) from investments in securities 1 (2,262) 1,882
Interest and other income (loss) 1,228 1,564
Losses from early extinguishments of debt — (44,284)
Interest expense (101,228) (103,331)
Net income 176,957 223,285
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (17,549) (18,204)
Noncontrolling interest - common units of the Operating Partnership 2 (16,361) (20,544)
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.91 $ 1.18
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.91 $ 1.18

_____________

1General and administrative expense includes $(2.3) million and $1.9 million and Gains (losses) from investments in securities include $(2.3) million and $1.9 million for the three months ended March 31, 2022 and December 31, 2021, respectively, related to the Company’s deferred compensation plan.

2For additional detail, see page 6.

Q1 2022
Funds from operations (FFO) 1

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

Three Months Ended
31-Mar-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
Add:
Noncontrolling interest - common units of the Operating Partnership 16,361 20,544
Noncontrolling interests in property partnerships 17,549 18,204
Net income 176,957 223,285
Add:
Depreciation and amortization expense 177,624 177,521
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,653) (17,482)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 22,044 20,401
Corporate-related depreciation and amortization (404) (426)
Less:
Gains on sales of real estate 22,701 115,556
Noncontrolling interests in property partnerships 17,549 18,204
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 318,318 269,539
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 32,182 26,576
FFO attributable to Boston Properties, Inc. $ 286,136 $ 242,963
Boston Properties, Inc.’s percentage share of Basic FFO 89.89 % 90.14 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.11 % 9.86 %
Basic FFO per share $ 1.83 $ 1.55
Weighted average shares outstanding - basic 156,650 156,297
Diluted FFO per share $ 1.82 $ 1.55
Weighted average shares outstanding - diluted 157,004 156,654

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Mar-22 31-Dec-21
Basic FFO $ 318,318 $ 269,539
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 318,318 269,539
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 32,118 29,389
Boston Properties, Inc.’s share of Diluted FFO $ 286,200 $ 240,150

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Mar-22 31-Dec-21
Shares/units for Basic FFO 174,276 173,390
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 354 357
Shares/units for Diluted FFO 174,630 173,747
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,626 17,093
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,004 156,654
Boston Properties, Inc.’s percentage share of Diluted FFO 89.91 % 90.16 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2022, see page 35.

Q1 2022
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Mar-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
Add:
Noncontrolling interest - common units of the Operating Partnership 16,361 20,544
Noncontrolling interests in property partnerships 17,549 18,204
Net income 176,957 223,285
Add:
Depreciation and amortization expense 177,624 177,521
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,653) (17,482)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 22,044 20,401
Corporate-related depreciation and amortization (404) (426)
Less:
Gains on sales of real estate 22,701 115,556
Noncontrolling interests in property partnerships 17,549 18,204
Basic FFO 318,318 269,539
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 (1,769) 3,408
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 889 877
Stock-based compensation 20,914 7,466
Non-real estate depreciation 404 426
Unearned portion of capitalized fees from consolidated joint ventures 6 593 1,598
Non-cash losses from early extinguishments of debt — 1,433
Less:
BXP’s Share of straight-line rent 1 35,103 30,129
BXP’s Share of fair value lease revenue 1, 7 2,185 2,058
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 45,591 83,011
BXP’s Share of maintenance capital expenditures 1, 8 9,848 27,743
Hotel improvements, equipment upgrades and replacements 36 57
Funds available for distribution to common shareholders and common unitholders (FAD) (A) 9 $ 248,032 $ 143,195
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 171,497 $ 170,492
FAD Payout Ratio1 (B÷A) 69.14 % 119.06 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2For a quantitative reconciliation for the three months ended March 31, 2022, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2022, see page 35.

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 2024 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 58 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.

9For the three months ended December 31, 2021, includes approximately $42.9 million of cash losses related to the early extinguishment of debt in connection with the early redemption of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that were scheduled to mature in February 2023.

Q1 2022
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
31-Mar-22 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Net income attributable to Boston Properties, Inc. 143,047 100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 16,361 11,084
Noncontrolling interest in property partnerships 17,549 16,467
Net income 176,957 128,147
Add:
Interest expense 101,228 107,902
Losses from early extinguishments of debt — 898
Depreciation and amortization expense 177,624 176,565
Transaction costs — 331
Payroll and related costs from management services contracts 4,065 3,505
General and administrative expense 43,194 44,959
Less:
Interest and other income (loss) 1,228 1,168
Gains (losses) from investments in securities (2,262) 1,659
Gains on sales of real estate 22,701 —
Income from unconsolidated joint ventures 2,189 5,225
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505
Development and management services revenue 5,831 6,803
Net Operating Income (NOI) 469,316 443,947
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 37,321 24,795
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 47,055 44,376
BXP’s Share of NOI 459,582 424,366
Less:
Termination income 2,078 4,269
BXP’s share of termination income from unconsolidated joint ventures 1 606 —
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2 221 (6)
BXP’s Share of NOI (excluding termination income) $ 457,119 $ 420,091
Net Operating Income (NOI) $ 469,316 $ 443,947
Less:
Termination income 2,078 4,269
NOI from non Same Properties (excluding termination income) 3 13,396 7,273
Same Property NOI (excluding termination income) 453,842 432,405
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 46,834 44,382
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 1,590 880
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 36,715 24,795
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 10,155 1,173
BXP’s Share of Same Property NOI (excluding termination income) $ 435,158 $ 412,525

_____________

1For a quantitative reconciliation for the three months ended March 31, 2022, see page 61.

2For a quantitative reconciliation for the three months ended March 31, 2022, see pages 58-59.

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 March 31, 2022 and therefore are no longer a part of the Company’s property portfolio.

Q1 2022
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
31-Mar-22 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Net income attributable to Boston Properties, Inc. 143,047 100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 16,361 11,084
Noncontrolling interest in property partnerships 17,549 16,467
Net income 176,957 128,147
Add:
Interest expense 101,228 107,902
Losses from early extinguishments of debt — 898
Depreciation and amortization expense 177,624 176,565
Transaction costs — 331
Payroll and related costs from management services contracts 4,065 3,505
General and administrative expense 43,194 44,959
Less:
Interest and other income (loss) 1,228 1,168
Gains (losses) from investments in securities (2,262) 1,659
Gains on sales of real estate 22,701 —
Income from unconsolidated joint ventures 2,189 5,225
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505
Development and management services revenue 5,831 6,803
Net Operating Income (NOI) 469,316 443,947
Less:
Straight-line rent 22,186 7,730
Fair value lease revenue 1,655 653
Termination income 2,078 4,269
Add:
Straight-line ground rent expense adjustment 1 576 765
Lease transaction costs that qualify as rent inducements 2 (4,583) 1,859
NOI - cash (excluding termination income) 439,390 433,919
Less:
NOI - cash from non Same Properties (excluding termination income) 3 5,827 23,829
Same Property NOI - cash (excluding termination income) 433,563 410,090
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 43,366 49,973
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 1,161 8,517
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5 22,759 25,363
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 2,227 1,121
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 411,890 $ 392,876

_____________

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 $168 and $167 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2024 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 2024 may vary significantly.

2Consist 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 March 31, 2022 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended March 31, 2022, see page 59.

5For a quantitative reconciliation for the three months ended March 31, 2022, see page 61.

Q1 2022
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Mar-22 31-Mar-21 Change Change 31-Mar-22 31-Mar-21 Change Change
Rental Revenue 2 $ 708,288 $ 682,889 $ 17,523 $ 9,807
Less: Termination income 2,078 4,269 — —
Rental revenue (excluding termination income) 2 706,210 678,620 4.1 % 17,523 9,807 78.7 %
Less: Operating expenses and real estate taxes 258,619 247,844 10,775 4.3 % 11,272 8,178 3,094 37.8 %
NOI (excluding termination income) 2, 3 $ 447,591 $ 430,776 3.9 % $ 6,251 $ 1,629 283.7 %
Rental revenue (excluding termination income) 2 $ 706,210 $ 678,620 4.1 % $ 17,523 $ 9,807 78.7 %
Less: Straight-line rent and fair value lease revenue 16,216 24,907 (8,691) (34.9) % 56 33 23 69.7 %
Add: Lease transaction costs that qualify as rent inducements 4 (4,583) 1,859 (6,442) (346.5) % — — — — %
Subtotal 685,411 655,572 29,839 4.6 % 17,467 9,774 7,693 78.7 %
Less: Operating expenses and real estate taxes 258,619 247,844 10,775 4.3 % 11,272 8,178 3,094 37.8 %
Add: Straight-line ground rent expense 5 576 766 (190) (24.8) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 427,368 $ 408,494 4.6 % $ 6,195 $ 1,596 288.2 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
31-Mar-22 31-Mar-21 Change Change 31-Mar-22 31-Mar-21 Change Change
Rental Revenue 2 $ 725,811 $ 692,696 $ 44,541 $ 39,985
Less: Termination income 2,078 4,269 606 —
Rental revenue (excluding termination income) 2 723,733 688,427 5.1 % 43,935 39,985 9.9 %
Less: Operating expenses and real estate taxes 269,891 256,022 13,869 5.4 % 17,375 16,363 1,012 6.2 %
NOI (excluding termination income) 2, 3 $ 453,842 $ 432,405 5.0 % $ 26,560 $ 23,622 12.4 %
Rental revenue (excluding termination income) 2 $ 723,733 $ 688,427 5.1 % $ 43,935 $ 39,985 9.9 %
Less: Straight-line rent and fair value lease revenue 16,272 24,940 (8,668) (34.8) % 6,531 1,033 5,498 532.2 %
Add: Lease transaction costs that qualify as rent inducements 4 (4,583) 1,859 (6,442) (346.5) % 358 1,419 (1,061) (74.8) %
Subtotal $ 702,878 $ 665,346 37,532 5.6 % 37,762 40,371 (2,609) (6.5) %
Less: Operating expenses and real estate taxes 269,891 256,022 13,869 5.4 % 17,375 16,363 1,012 6.2 %
Add: Straight-line ground rent expense 5 576 766 (190) (24.8) % 145 234 (89) (38.0) %
NOI - cash (excluding termination income) 2, 3 $ 433,563 $ 410,090 5.7 % $ 20,532 $ 24,242 (15.3) %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7, 8
Three Months Ended % Three Months Ended %
31-Mar-22 31-Mar-21 Change Change 31-Mar-22 31-Mar-21 Change Change
Rental Revenue 2 $ 75,130 $ 74,072 $ 695,222 $ 658,609
Less: Termination income 221 (6) 2,463 4,275
Rental revenue (excluding termination income) 2 74,909 74,078 1.1 % 692,759 654,334 5.9 %
Less: Operating expenses and real estate taxes 29,665 30,576 (911) (3.0) % 257,601 241,809 15,792 6.5 %
NOI (excluding termination income) 2, 3 $ 45,244 $ 43,502 4.0 % $ 435,158 $ 412,525 5.5 %
Rental revenue (excluding termination income) 2 $ 74,909 $ 74,078 1.1 % $ 692,759 $ 654,334 5.9 %
Less: Straight-line rent and fair value lease revenue 596 2,297 (1,701) (74.1) % 22,207 23,676 (1,469) (6.2) %
Add: Lease transaction costs that qualify as rent inducements 4 (2,443) 251 (2,694) (1,073.3) % (1,782) 3,027 (4,809) (158.9) %
Subtotal 71,870 72,032 (162) (0.2) % 668,770 633,685 35,085 5.5 %
Less: Operating expenses and real estate taxes 29,665 30,576 (911) (3.0) % 257,601 241,809 15,792 6.5 %
Add: Straight-line ground rent expense 5 — — — — % 721 1,000 (279) (27.9) %
NOI - cash (excluding termination income) 2, 3 $ 42,205 $ 41,456 1.8 % $ 411,890 $ 392,876 4.8 %

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 52.

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.

4Consist 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 $168 and $167 for the three months ended March 31, 2022 and 2021, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

Q1 2022
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 $22,633, compared to Q1 2021. Included in Q1 2022 is BXP’s Share of approximately $2,249 associated with the reinstatement of accrued rent balances that the Company determined were probable of collection. Included in the Q1 2021 comparison are approximately $693 in write-offs associated with accrued rent, net and $(200) in write-offs associated with associated with accounts receivable, net. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $2,742. For additional information, see page 56.

8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $19,014, compared to Q1 2021. Included in Q1 2021 is BXP’s Share of $(200) of write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $7,489 in Q1 2022 compared to Q1 2021. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $7,289. For additional information, see page 56.

Q1 2022
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Mar-22 31-Dec-21
Maintenance capital expenditures $ 10,652 $ 33,919
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures 6,243 —
Hotel improvements, equipment upgrades and replacements 36 57
Subtotal 16,931 33,976
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 719 180
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs — 1,023
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 1,523 6,356
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 2,223 —
BXP’s Share of Capital Expenditures 1 $ 13,904 $ 28,823

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Mar-22 31-Dec-21
Square feet 1,057,074 1,422,236
Tenant improvements and lease commissions PSF $ 54.99 $ 75.03

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2Includes 100% of unconsolidated joint ventures.

Q1 2022
Acquisitions and dispositions

For the period from January 1, 2022 through March 31, 2022

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
N/A — $ — $ — $ — — %
Total Acquisitions — $ — $ — $ — — %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain
195 West Street Waltham, MA March 31, 2022 63,500 $ 37,700 $ 35,397 $ 22,701
Total Dispositions 63,500 $ 37,700 $ 35,397 $ 22,701
Q1 2022
--- ---
Construction in progress

as of March 31, 2022

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 3/31/2022 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 $ 328,547 $ 418,400 $ — $ — $ 89,853 90 % — % N/A
Reston Next Q4 2021 Q4 2023 Reston, VA 1,062,000 538,075 715,300 — — 177,225 87 % 67 % $ 4,776
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 252,049 356,100 — — 104,051 61 % — % N/A
360 Park Avenue South (42% ownership) 6 Q3 2023 Q1 2025 New York, NY 450,000 195,333 219,000 92,774 85,588 16,481 — % — % N/A
Platform16 Building A (55% ownership) 7 Q2 2025 Q4 2026 San Jose, CA 389,500 65,199 231,900 — — 166,701 — % — % N/A
Total Office Properties under Construction 2,801,500 1,379,203 1,940,700 92,774 85,588 554,311 57 % 25 % $ 4,776
Lab/Life Sciences
880 Winter Street (Redevelopment) Q4 2022 Q1 2023 Waltham, MA 244,000 47,522 108,000 — — 60,478 85 % — % N/A
751 Gateway (49% ownership) Q2 2024 Q2 2024 South San Francisco, CA 231,000 55,892 127,600 — — 71,708 100 % — % N/A
103 CityPoint Q4 2023 Q3 2024 Waltham, MA 113,000 16,156 115,100 — — 98,944 — % — % N/A
180 CityPoint Q4 2023 Q4 2024 Waltham, MA 329,000 66,272 274,700 — — 208,428 43 % — % N/A
651 Gateway (50% ownership) Q4 2023 Q4 2025 South San Francisco, CA 327,000 5,227 146,500 — — 141,273 — % — % N/A
Total Lab/Life Sciences Properties under Construction 1,244,000 191,069 771,900 — — 580,831 47 % — % —
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 81,617 182,300 — — 100,683 N/A — % N/A
Total Properties Under Construction 4,104,500 $ 1,651,889 $ 2,894,900 $ 92,774 $ 85,588 $ 1,235,825 54 % 8 17 % $ 4,776

________________

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 April 29, 2022, 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 March 31, 2022. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 52.

6Investment to Date includes all related costs incurred prior to the contribution of the property by the Company to the joint venture on December 15, 2021 totaling approximately $107 million and the Company’s proportionate share of the loan. The Company’s joint venture partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the joint venture partners will fund required capital according to their percentage interests.

7Estimated total investment represents the costs to complete Building A, a 389,500 square foot building, and Building A’s proportionate share of land and garage costs. In conjunction with the construction of Building A, garage and site work will be completed for Phase II, which will support approximately 700,000 square feet of development in two office buildings, budgeted to be an incremental $141 million.

8Total percentage leased excludes Other.

Q1 2022
Land parcels and purchase options

as of March 31, 2022

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 Francisco, CA 850,000
San Jose, CA (55% Ownership) 698,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% Ownership) 451,000
Springfield, VA 422,000
Waltham, MA 365,000
Dulles, VA 310,000
El Segundo, CA (50% Ownership) 275,000
Rockville, MD 3, 4 202,000
Total 13,512,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 1,400,000
Boston, MA 1,300,000
Waltham, MA 5 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 pages 20-23.

4Includes three buildings that are currently vacant at Shady Grove Innovation District in Rockville, Maryland. The Company intends to reposition these three vacant buildings, totaling 202,000 square feet, to support life science uses. These three buildings are not included in the Company’s in-service portfolio.

5The Company expects to be a 50% partner in the future development of these sites.

Q1 2022
Leasing activity

for the three months ended March 31, 2022

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,340,029
Less:
Property dispositions/properties taken out of service 1 95,180
Add:
Properties placed (and partially placed) in-service 2 410,690
Leases expiring or terminated during the period 1,097,803
Total space available for lease 6,753,342
1st generation leases 552,730
2nd generation leases with new tenants 687,656
2nd generation lease renewals 369,418
Total space leased 1,609,804
Vacant space available for lease at the end of the period 5,143,538
Net (increase)/decrease in available space 196,491
Second generation leasing information: 3
Leases commencing during the period (SF) 1,057,074
Weighted average lease term (months) 71
Weighted average free rent period (days) 135
Total transaction costs per square foot 4 54.99
Increase (decrease) in gross rents 5 (2.36)
Increase (decrease) in net rents 6 (4.34)

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents Total square feet of leases executed in the quarter 8
1st generation 2nd generation total 7 gross 5 net 6
Boston 140,944 227,829 368,773 5.53 % 7.72 % 350,767
Los Angeles — 79,996 79,996 0.69 % 1.04 % 12,306
New York — 267,169 267,169 (10.14) % (20.12) % 434,340
San Francisco — 181,943 181,943 6.07 % 8.18 % 199,268
Seattle — 3,397 3,397 — — —
Washington, DC 411,786 296,740 708,526 (1.98) % (2.19) % 182,911
Total / Weighted Average 552,730 1,057,074 1,609,804 (2.36) % (4.34) % 1,179,592

_____________

1Total square feet of properties taken out of service in Q1 2022 consists of 95,180 at 651 Gateway.

2Total square feet of properties placed (and partially placed) in-service in Q1 2022 consists of 410,690 at Reston Next.

3Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,057,074 square feet of second generation leases that commenced in Q1 2022, leases for 735,157 square feet were signed in prior periods.

4Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.

5Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 734,025 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.

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 734,025 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.

7Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

8Represents 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 321,917.

Q1 2022
Portfolio overview

for the three months ended March 31, 2022

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,099,481 1,056,365 550,114 330,000 16,035,960
Los Angeles 2,183,318 126,377 — — 2,309,695
New York 11,334,521 417,849 — — 11,752,370
San Francisco 6,994,229 351,284 318,171 — 7,663,684
Seattle 748,462 18,761 — — 767,223
Washington, DC 9,016,767 672,330 822,436 — 10,511,533
Total 44,376,778 2,642,966 1,690,721 330,000 49,040,465
% of Total 90.49 % 5.39 % 3.45 % 0.67 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 674,058 $ 53,573 $ 12,323 $ 4,457 $ 744,411
Less:
Partners’ share from consolidated joint ventures 4 68,293 8,856 — — 77,149
Add:
BXP’s share from unconsolidated joint ventures 5 52,200 3,410 2,444 — 58,054
BXP’s Share of Rental revenue 1 $ 657,965 $ 48,127 $ 14,767 $ 4,457 $ 725,316
% of Total 90.71 % 6.64 % 2.04 % 0.61 % 100.00 %

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

CBD Suburban Total
Boston 25.90 % 7.06 % 32.96 %
Los Angeles 3.00 % — % 3.00 %
New York 24.99 % 2.24 % 27.23 %
San Francisco 17.79 % 2.33 % 20.12 %
Seattle 0.43 % — % 0.43 %
Washington, DC 4.81 % 11.45 % 16.26 %
Total 76.92 % 23.08 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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 $100 of revenue from retail tenants that is included in Retail.

4See page 59 for additional information.

5See page 61 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. to BXP’s Share of NOI (excluding termination income), see page 8.

Q1 2022
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
31-Mar-22 31-Dec-21 31-Mar-22 31-Dec-21
Rental Revenue 2 $ 12,966 $ 12,836 $ 4,557 $ 6,227
Less: Operating expenses and real estate taxes 6,432 6,344 4,840 5,005
Net Operating Income (NOI) 2 6,534 6,492 (283) 1,222
Add: BXP’s share of NOI from unconsolidated joint ventures 1,647 1,288 N/A N/A
BXP’s Share of NOI 2 $ 8,181 $ 7,780 $ (283) $ 1,222
Rental Revenue 2 $ 12,966 $ 12,836 $ 4,557 $ 6,227
Less: Straight line rent and fair value lease revenue 54 (26) 2 5
Add: Lease transaction costs that qualify as rent inducements — — — —
Subtotal 12,912 12,862 4,555 6,222
Less: Operating expenses and real estate taxes 6,432 6,344 4,840 5,005
NOI - cash basis 2 6,480 6,518 (285) 1,217
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,647 1,288 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 8,127 $ 7,806 $ (285) $ 1,217

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-22 31-Mar-21
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 3,890 $ 3,260 19.33 %
Average Rental Rate Per Occupied Square Foot $ 5.42 $ 4.52 19.91 %
Average Physical Occupancy 94.09 % 56.82 % 65.59 %
Average Economic Occupancy 92.20 % 49.78 % 85.21 %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 2,743 $ 2,585 6.11 %
Average Rental Rate Per Occupied Square Foot $ 5.04 $ 4.78 5.44 %
Average Physical Occupancy 93.57 % 90.36 % 3.55 %
Average Economic Occupancy 93.14 % 88.81 % 4.88 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 3,933 $ 3,474 13.21 %
Average Rental Rate Per Occupied Square Foot $ 4.36 $ 3.99 9.27 %
Average Physical Occupancy 96.12 % 87.60 % 9.73 %
Average Economic Occupancy 95.61 % 84.00 % 13.82 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 40.40 % 10.90 % 270.64 %
Average Daily Rate $ 266.10 $ 123.11 116.15 %
Revenue Per Available Room $ 91.38 $ 13.43 580.42 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 4 402
Average Monthly Rental Rate $ 3,342 $ 2,953 13.17 %
Average Rental Rate Per Occupied Square Foot $ 4.03 $ 3.55 13.52 %
Average Physical Occupancy 71.48 % 15.84 % 351.26 %
Average Economic Occupancy 68.59 % 9.08 % 655.40 %
Q1 2022
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-22 31-Mar-21
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,580 $ 2,265 13.91 %
Average Rental Rate Per Occupied Square Foot $ 2.66 $ 2.36 12.71 %
Average Physical Occupancy 94.16 % 80.05 % 17.63 %
Average Economic Occupancy 93.50 % 75.56 % 23.74 %
The Avant at Reston Town Center, Reston, VA 2, 3 359
Average Monthly Rental Rate $ 2,340 $ 2,287 2.32 %
Average Rental Rate Per Occupied Square Foot $ 2.55 $ 2.51 1.59 %
Average Physical Occupancy 94.15 % 91.36 % 3.05 %
Average Economic Occupancy 94.02 % 90.17 % 4.27 %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3Excludes retail space.

4This 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.

Q1 2022
In-service property listing as of March 31, 2022
--- --- --- --- --- --- --- --- ---
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 1,768,775 97.2 % $ 76.50
100 Federal Street (55% ownership) CBD Boston MA 1 1,236,649 98.1 % 68.12
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,745 90.9 % 69.44
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,456 93.4 % 74.25
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,819 99.8 % 83.02
100 Causeway Street (50% ownership) 3, 4 CBD Boston MA 1 633,819 89.2 % 70.69
Prudential Center (retail shops) 5, 6 CBD Boston MA 1 597,478 76.3 % 98.49
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 58.09
The Hub on Causeway - Podium (50% ownership) 3 CBD Boston MA 1 382,497 80.3 % 72.56
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 78.90
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 61.36
Subtotal 11 8,398,270 93.7 % $ 74.23
145 Broadway East Cambridge MA 1 490,086 99.1 % $ 87.81
355 Main Street East Cambridge MA 1 259,640 99.3 % 79.85
90 Broadway East Cambridge MA 1 223,771 98.1 % 75.34
255 Main Street East Cambridge MA 1 215,394 97.5 % 91.35
300 Binney Street East Cambridge MA 1 195,191 100.0 % 60.03
150 Broadway East Cambridge MA 1 177,226 100.0 % 84.14
105 Broadway East Cambridge MA 1 152,664 100.0 % 71.33
250 Binney Street East Cambridge MA 1 67,362 100.0 % 48.55
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.47
Subtotal 9 1,976,616 99.2 % $ 76.79
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 993,110 72.0 % $ 45.53
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 79.1 % 39.31
140 Kendrick Street Route 128 Mass Turnpike MA 3 388,193 87.9 % 43.89
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 57.64
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 88.1 % 40.28
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 95.6 % 43.73
200 West Street 4 Route 128 Mass Turnpike MA 1 273,365 84.1 % 67.49
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 53.39
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 54.64
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 98.3 % 54.72
890 Winter Street Route 128 Mass Turnpike MA 1 177,902 58.0 % 45.68
153 & 211 Second Avenue 4 Route 128 Mass Turnpike MA 2 136,882 100.0 % 55.56
1265 Main Street (50% ownership) 3 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.52
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 46.12
The Point 5 Route 128 Mass Turnpike MA 1 16,300 100.0 % 57.18
Lexington Office Park 7 Route 128 Northwest MA 2 166,779 51.9 % 29.49
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 67.45
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.71
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 63.75
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 46.46
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 50.30
Subtotal 28 4,752,557 85.4 % $ 48.48
Boston Office Total: 48 15,127,443 91.8 % $ 67.03
Residential
Hub50House (440 units) (50% ownership) 3 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,096
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,257 Q1 2022
--- ---
In-service property listing (continued) as of March 31, 2022
--- --- --- --- --- --- --- --- ---
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: 52 16,035,960
LOS ANGELES
Office
Colorado Center (50% ownership) 3 West Los Angeles CA 6 1,130,605 87.8 % $ 69.81
Santa Monica Business Park (55% ownership) 3 West Los Angeles CA 14 1,104,686 89.0 % 67.36
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 73.56
Subtotal 27 2,309,695 88.4 % $ 68.76
Los Angeles Total: 27 2,309,695 88.4 % $ 68.76
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,962,118 90.0 % $ 159.81
601 Lexington Avenue (55% ownership) 4 Park Avenue NY 1 1,671,749 95.8 % 100.23
399 Park Avenue Park Avenue NY 1 1,577,544 96.8 % 98.62
599 Lexington Avenue Park Avenue NY 1 1,062,708 100.0 % 93.37
Times Square Tower (55% ownership) Times Square NY 1 1,225,448 85.7 % 80.02
250 West 55th Street Times Square / West Side NY 1 966,979 98.7 % 101.13
Dock 72 (50% ownership) 3 Brooklyn NY 1 668,625 33.1 % 60.83
510 Madison Avenue Fifth/Madison Avenue NY 1 353,800 93.8 % 135.92
Subtotal 8 9,488,971 89.7 % $ 109.42
510 Carnegie Center Princeton NJ 1 234,160 10.2 % $ 37.53
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 35.33
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.74
212 Carnegie Center Princeton NJ 1 151,355 78.0 % 39.30
214 Carnegie Center Princeton NJ 1 146,799 65.9 % 36.36
506 Carnegie Center Princeton NJ 1 138,616 68.4 % 38.12
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 41.39
202 Carnegie Center Princeton NJ 1 134,068 88.5 % 40.66
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.19
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.32
101 Carnegie Center Princeton NJ 1 121,620 95.3 % 38.54
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 39.06
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.27
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 38.89
103 Carnegie Center Princeton NJ 1 96,331 73.5 % 35.27
105 Carnegie Center Princeton NJ 1 69,955 50.2 % 35.42
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 35.37
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 36.96
201 Carnegie Center Princeton NJ — 6,500 100.0 % 33.44
Subtotal 18 2,263,399 78.2 % $ 38.34
New York Total: 26 11,752,370 87.5 % $ 97.19
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 107.67
Embarcadero Center Four CBD San Francisco CA 1 940,667 91.8 % 87.16
Embarcadero Center One CBD San Francisco CA 1 831,925 79.4 % 83.30
Embarcadero Center Two CBD San Francisco CA 1 801,378 87.0 % 81.86
Embarcadero Center Three CBD San Francisco CA 1 786,864 86.6 % 85.66
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 72.97 Q1 2022
--- ---
In-service property listing (continued) as of March 31, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
535 Mission Street CBD San Francisco CA 1 307,235 90.1 % 89.78
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 66.89
Subtotal 9 5,639,624 91.2 % $ 90.04
Gateway Commons (50% ownership) 3, 8 South San Francisco CA 5 787,755 80.2 % $ 61.35
Mountain View Research Park Mountain View CA 15 542,264 71.0 % 70.34
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 88.49
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 49.66
North First Business Park 7 San Jose CA 5 190,636 58.3 % 22.68
Subtotal 27 1,693,064 76.4 % $ 63.54
San Francisco Office Total: 36 7,332,688 87.8 % $ 84.70
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 37 7,663,684
SEATTLE
Office
Safeco Plaza (33.67% ownership) 3, 4 CBD Seattle WA 1 767,223 87.7 % $ 44.15
Subtotal 1 767,223 87.7 % $ 44.15
Seattle Total: 1 767,223 87.7 % $ 44.15
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 3 East End Washington DC 1 657,481 65.6 % $ 69.05
901 New York Avenue (25% ownership) 3 East End Washington DC 1 541,743 73.5 % 68.15
601 Massachusetts Avenue East End Washington DC 1 478,667 98.9 % 85.83
Market Square North (50% ownership) 3 East End Washington DC 1 417,982 76.1 % 70.85
2200 Pennsylvania Avenue CBD Washington DC 1 459,667 97.3 % 95.55
1330 Connecticut Avenue CBD Washington DC 1 253,579 91.5 % 71.01
Sumner Square CBD Washington DC 1 209,556 94.8 % 55.54
500 North Capitol Street, N.W. (30% ownership) 3 Capitol Hill Washington DC 1 230,900 98.5 % 81.25
Capital Gallery Southwest Washington DC 1 176,809 97.1 % 53.26
Subtotal 9 3,426,384 84.6 % $ 75.05
South of Market Reston VA 3 623,250 99.6 % $ 54.60
Fountain Square Reston VA 2 525,073 83.6 % 49.89
One Freedom Square Reston VA 1 428,401 83.8 % 45.15
Two Freedom Square Reston VA 1 423,222 100.0 % 48.15
One and Two Discovery Square Reston VA 2 366,989 99.0 % 52.49
One Reston Overlook Reston VA 1 319,519 97.8 % 46.76
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 67.18
Reston Corporate Center Reston VA 1 261,046 100.0 % 47.20
Democracy Tower Reston VA 2 259,441 97.7 % 63.07
Fountain Square Retail 5 Reston VA 1 198,573 79.5 % 45.10
Two Reston Overlook Reston VA 1 134,615 100.0 % 49.84
Subtotal 16 3,815,938 94.3 % $ 51.86
7750 Wisconsin Avenue (50% ownership) 3, 4 Bethesda/Chevy Chase MD 1 733,483 100.0 % $ 38.00
Wisconsin Place Office Montgomery County MD 1 299,248 87.6 % 57.95
Shady Grove Innovation District 4, 7 North Rockville MD 4 232,278 65.2 % 18.07
Kingstowne Two Springfield VA 1 155,995 83.7 % 39.08
Kingstowne One Springfield VA 1 153,401 53.5 % 39.11
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 33.15 Q1 2022
--- ---
In-service property listing (continued) as of March 31, 2022
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
7435 Boston Boulevard Springfield VA 1 103,557 43.7 % 22.93
8000 Grainger Court Springfield VA 1 88,775 81.0 % 13.25
Kingstowne Retail 5 Springfield VA 1 88,228 96.9 % 47.17
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.08
7501 Boston Boulevard Springfield VA 1 75,756 — % —
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 18.33
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 19.00
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.87
7451 Boston Boulevard Springfield VA 1 45,949 65.3 % 21.60
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 24.14
7375 Boston Boulevard Springfield VA 1 26,865 31.5 % 25.20
Subtotal 20 2,396,054 83.2 % $ 35.13
Washington, DC Office Total: 45 9,638,376 88.1 % $ 55.80
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: 47 10,511,533
Total In-Service Properties: 190 49,040,465 89.1 % 9 $ 74.61 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 52.

3This is an unconsolidated joint venture property.

4Not included in the 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.

5This is a retail property.

6Includes 145,849 square feet at Prudential Center (retail shops) of leases terminated by the Company where the tenant still occupies the space.

7Property held for redevelopment.

8In January 2022, 651 Gateway was taken out of service and placed in redevelopment. For additional detail, see page 14.

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

Q1 2022
Top 20 tenants listing and portfolio tenant diversification

as of March 31, 2022

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.56 % 9.8
2 Arnold & Porter Kaye Scholer 2.55 % 12.1
3 Akamai Technologies 2.19 % 12.6
4 Biogen 1.77 % 4.6
5 Shearman & Sterling 1.57 % 11.7
6 Kirkland & Ellis 1.52 % 15.6
7 Ropes & Gray 1.51 % 8.1
8 Google 1.38 % 15.4
9 WeWork 1.38 % 11.4
10 Microsoft 1.30 % 10.0
11 Millennium Management 1.20 % 8.8
12 Weil Gotshal & Manges 1.16 % 12.1
13 Wellington Management 1.14 % 11.0
14 Aramis (Estee Lauder) 1.00 % 15.4
15 Fannie Mae 0.98 % 15.4
16 Morrison & Foerster 0.90 % 8.5
17 Snap 0.86 % 3.8
18 O'Melveny & Myers 0.86 % 2.7
19 Mass Financial Services 0.86 % 5.9
20 Bank of America 0.86 % 13.3
BXP’s Share of Annualized Rental Obligations 28.56 %
BXP’s Share of Square Feet 1 23.18 %
Weighted Average Remaining Lease Term (years) 10.6

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
AstraZeneca 4 290 Binney Street 4 570,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Genentech 751 Gateway 229,000
Volkswagen Group of America Reston Next 196,000

TENANT DIVERSIFICATION 2

chart-b457c9b03f7b4d4ea8f.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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.

4As of April 27, 2022. 290 Binney Street is a future development project in Cambridge, MA. The lease and the commencement of development are subject to various conditions, some of which are not within BXP’s control.

Q1 2022
Occupancy by location

as of March 31, 2022

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

CBD Suburban Total
Location 31-Mar-22 31-Dec-21 31-Mar-22 31-Dec-21 31-Mar-22 31-Dec-21
Boston 94.8 % 94.7 % 85.4 % 84.1 % 91.8 % 91.4 %
Los Angeles 88.4 % 88.8 % — % — % 88.4 % 88.8 %
New York 89.7 % 89.9 % 78.2 % 78.1 % 87.5 % 87.6 %
San Francisco 91.2 % 92.1 % 76.4 % 73.5 % 87.8 % 87.3 %
Seattle 87.7 % 90.9 % — % — % 87.7 % 90.9 %
Washington, DC 84.6 % 84.8 % 90.0 % 88.5 % 88.1 % 87.2 %
Total Portfolio 90.9 % 91.2 % 85.2 % 83.6 % 89.1 % 88.8 %

chart-66a70bb7f5ca40b6a63.jpg

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

CBD Suburban Total
Location 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21 31-Mar-22 31-Mar-21
Boston 95.1 % 96.1 % 84.5 % 87.6 % 91.8 % 93.4 %
Los Angeles 88.4 % 82.2 % — % — % 88.4 % 82.2 %
New York 89.7 % 89.5 % 78.2 % 75.8 % 87.4 % 86.8 %
San Francisco 91.2 % 93.0 % 76.4 % 76.7 % 87.8 % 89.2 %
Seattle — % — % — % — % — % — %
Washington, DC 84.6 % 83.4 % 89.8 % 87.2 % 87.7 % 85.7 %
Total Portfolio 91.0 % 91.0 % 84.5 % 84.1 % 89.0 % 88.9 %

chart-6aba57c2482c43e681f.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 52.

Q1 2022
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit 255,000
Unsecured Senior Notes, at face value 9,550,000
Outstanding Principal 13,105,000
Discount on Unsecured Senior Notes (15,835)
Deferred Financing Costs, Net (79,041)
Consolidated Debt $ 13,010,124

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
601 Lexington Avenue (55% ownership) January 9, 2032 2.93% 2.79% $ 1,000,000
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 3,300,000

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
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
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
$ 9,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,712 156,712 $ 20,184,506
Common Operating Partnership Units 18,229 18,229 2,347,895
Total Equity 174,941 $ 22,532,401
Consolidated Debt (A) $ 13,010,124
Add: BXP’s share of unconsolidated joint venture debt 3 1,425,290
Less: Partners’ share of consolidated debt 4 1,356,905
BXP’s Share of Debt 5 (B) $ 13,078,509
Consolidated Market Capitalization (C) $ 35,542,525
BXP’s Share of Market Capitalization 5 (D) $ 35,610,910
Consolidated Debt/Consolidated Market Capitalization (A÷C) 36.60 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 36.73 %

_____________

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

2Values are based on the March 31, 2022 closing price of $128.80 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 33.

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 52.

Q1 2022
Debt analysis 1

as of March 31, 2022

(dollars in thousands)

chart-6aae2786bc3848ceb0e.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at March 31, 2022 Letters of Credit Remaining Capacity at March 31, 2022
Unsecured Line of Credit $ 1,500,000 $ 255,000 $ 6,348 $ 1,238,652

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 74.88 % 3.29 % 3.37 % 6.3
Secured Debt 25.12 % 3.24 % 3.42 % 6.6
Consolidated Debt 100.00 % 3.28 % 3.39 % 6.3

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt 1.96 % 1.02 % 1.13 % 4.2
Fixed Rate Debt 98.04 % 3.32 % 3.43 % 6.4
Consolidated Debt 100.00 % 3.28 % 3.39 % 6.3

_____________

1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 33.

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.

Q1 2022
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 March 31, 2022 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% 46.3 % 43.0 %
Secured Debt/Total Assets Less than 50% 15.6 % 14.5 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.35 4.35
Unencumbered Assets/ Unsecured Debt Greater than 150% 247.4 % 271.4 %

_____________

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.

Q1 2022
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
31-Mar-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
Add:
Noncontrolling interest - common units of the Operating Partnership 16,361 20,544
Noncontrolling interest in property partnerships 17,549 18,204
Net income 176,957 223,285
Add:
Interest expense 101,228 103,331
Losses from early extinguishments of debt — 44,284
Depreciation and amortization expense 177,624 177,521
Less:
Gains on sales of real estate 22,701 115,556
Income (loss) from unconsolidated joint ventures 2,189 (825)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 37,744 32,724
EBITDAre 1 468,663 466,414
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 46,946 47,673
BXP’s Share of EBITDAre 1 (A) 421,717 418,741
Add:
Stock-based compensation expense 20,914 7,466
BXP’s Share of straight-line ground rent expense adjustment 1 889 877
BXP’s Share of lease transaction costs that qualify as rent inducements 1 (1,769) 3,408
Less:
BXP’s Share of straight-line rent 1 35,103 30,129
BXP’s Share of fair value lease revenue 1 2,185 2,058
Non-cash losses from early extinguishments of debt — 1,433
BXP’s Share of EBITDAre – cash 1 $ 404,463 $ 396,872
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,686,868 $ 1,674,964

Reconciliation of BXP’s Share of Net Debt 1

31-Mar-22 31-Dec-21
Consolidated debt $ 13,010,124 $ 12,896,609
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 436,271 452,692
Cash held in escrow for 1031 exchange — —
Net debt 1 12,573,853 12,443,917
Add:
BXP’s share of unconsolidated joint venture debt 2 1,425,290 1,383,887
Partners’ share of cash and cash equivalents from consolidated joint ventures 113,172 127,413
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 99,379 102,942
Partners’ share of consolidated joint venture debt 3 1,356,905 1,356,579
BXP’s Share of Net Debt 1 (B) $ 12,656,031 $ 12,495,696
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.50 7.46

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended March 31, 2022, see pages 33 and 60.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended March 31, 2022, see pages 31 and 58.

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

Q1 2022
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Mar-22 31-Dec-21
BXP’s Share of interest expense 1 $ 102,730 $ 104,492
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,952 3,805
Adjusted interest expense excluding capitalized interest (A) 97,332 99,241
Add:
BXP’s Share of capitalized interest 1 15,009 14,246
Adjusted interest expense including capitalized interest (B) $ 112,341 $ 113,487
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 404,463 $ 396,872
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 4.16 4.00
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.60 3.50

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Mar-22 31-Dec-21
BXP’s Share of interest expense 1 $ 102,730 $ 104,492
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,952 3,805
Add:
BXP’s Share of capitalized interest 1 15,009 14,246
BXP’s Share of maintenance capital expenditures 1 9,848 27,743
Hotel improvements, equipment upgrades and replacements 36 57
Total Fixed Charges (A) $ 122,225 $ 141,287
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 404,463 $ 396,872
Fixed Charge Coverage Ratio (B÷A) 3.31 2.81

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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

Q1 2022
Consolidated joint ventures

d

as of March 31, 2022

(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 $ 3,191,090 $ 2,264,006 $ 5,455,096
Cash and cash equivalents 135,891 130,702 266,593
Other assets 290,297 365,602 655,899
Total assets $ 3,617,278 $ 2,760,310 $ 6,377,588
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,281,859 $ 986,855 $ 3,268,714
Other liabilities 95,889 93,709 189,598
Total liabilities 2,377,748 1,080,564 3,458,312
Equity:
Boston Properties, Inc. 745,277 625,422 1,370,699
Noncontrolling interests 494,253 1,054,324 1,548,577 2
Total equity 1,239,530 1,679,746 2,919,276
Total liabilities and equity $ 3,617,278 $ 2,760,310 $ 6,377,588
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 54,356 $ 58,816 $ 113,172
Partners’ share of consolidated debt 3 $ 912,820 4 $ 444,085 $ 1,356,905

_____________

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.

Q1 2022
Consolidated joint ventures (continued)

for the three months ended March 31, 2022

(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 $ 73,915 $ 101,768 $ 175,683
Straight-line rent 2,619 (315) 2,304
Fair value lease revenue 208 81 289
Termination income — 492 492
Total lease revenue 76,742 102,026 178,768
Parking and other — 1,200 1,200
Total rental revenue 2 76,742 103,226 179,968
Expenses
Operating 28,829 37,888 66,717
Net Operating Income (NOI) 47,913 65,338 113,251
Other income (expense)
Development and management services revenue — 3 3
Interest and other income 1 92 93
Interest expense (20,841) (7,577) (28,418)
Depreciation and amortization expense (16,901) (22,867) (39,768)
General and administrative expense (138) (108) (246)
Total other income (expense) (37,879) (30,457) (68,336)
Net income $ 10,034 $ 34,881 $ 44,915

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 $ 10,034 $ 34,881 $ 44,915
Add: Depreciation and amortization expense 16,901 22,867 39,768
Entity FFO $ 26,935 $ 57,748 $ 84,683
Partners’ NCI 3 $ 3,037 $ 14,512 $ 17,549
Partners’ share of depreciation and amortization expense after BXP’s basis differential 3 7,101 10,552 17,653
Partners’ share FFO 3 $ 10,138 $ 25,064 $ 35,202
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 6,997 $ 20,369 $ 27,366
Depreciation and amortization expense - BXP’s basis difference 43 399 442
BXP’s share of depreciation and amortization expense 9,757 11,916 21,673
BXP’s share of FFO $ 16,797 $ 32,684 $ 49,481

_____________

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

2 See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

3 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.

Q1 2022
Unconsolidated joint ventures 1

as of March 31, 2022

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Mezzanine/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 % 58,908 165,369 September 5, 2023 1.65 % 1.86 %
Podium 50.00 % 49,741 86,957 September 6, 2023 2.49 % 2.65 %
Hub50House 3 50.00 % 47,977 88,213 April 19, 2022 2.22 % 2.51 %
Hotel Air Rights 50.00 % 11,801 — — — % — %
1265 Main Street 50.00 % 3,256 17,993 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 162,987 164,042 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 232,384 274,725 August 9, 2027 3.56 % 3.58 %
Beach Cities Media Center 50.00 % 27,078 — — — % — %
New York
Dock 72 4 50.00 % 26,852 98,715 December 18, 2023 3.17 % 3.39 %
360 Park Avenue South 5 42.21 % 109,318 84,526 December 14, 2024 2.64 % 3.09 %
3 Hudson Boulevard 6 25.00 % 116,059 19,980 July 13, 2023 3.68 % 3.76 %
San Francisco
Platform 16 55.00 % 117,806 — — — % — %
Gateway Commons 50.00 % 342,021 — — — % — %
Seattle
Safeco Plaza 33.67 % 72,362 83,669 September 1, 2026 2.38 % 2.51 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 63,944 111,033 April 26, 2023 1.38 % 1.93 %
1001 6th Street 50.00 % 42,777 — — — % — %
Market Square North 50.00 % (5,514) 62,128 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 33,351 — — — % — %
500 North Capitol Street, N.W. 30.00 % (8,477) 31,479 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,596) 53,782 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (36,485) 82,679 April 9, 2024 3.06 % 3.84 %
1,455,550
Investments with deficit balances reflected within Other Liabilities 63,072
Investments in Unconsolidated Joint Ventures $ 1,518,622
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,425,290

chart-1df893f5511944a8929.jpg

Q1 2022
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 61.97 % 2.35 % 2.67 % 1.9
Fixed Rate Debt 38.03 % 3.76 % 3.84 % 4.4
Total Debt 100.00 % 2.88 % 3.11 % 2.8

_____________

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 On April 18, 2022, the joint venture extended the loan maturity to June 19, 2022.

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

5 The Company’s partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests.

6 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.

Q1 2022
Unconsolidated joint ventures (continued)

for the three months ended March 31, 2022

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 18,986 $ 25,228 $ 3,599 $ 9,599 $ 7,212 $ 24,873 $ 89,497
Straight-line rent 5,826 9,796 54 1,503 550 7,270 24,999
Reinstatement of straight-line rent 2,004 307 — — — 207 2,518
Fair value lease revenue — 289 — 38 1,156 — 1,483
Termination income 1,134 77 — — — — 1,211
Total lease revenue 27,950 35,697 3,653 11,140 8,918 32,350 119,708
Parking and other 29 1,969 — 45 509 1,506 4,058
Total rental revenue 3 27,979 37,666 3,653 11,185 9,427 33,856 123,766
Expenses
Operating 8,595 12,146 4,328 4,399 3,623 12,305 45,396
Net operating income/(loss) 19,384 25,520 (675) 6,786 5,804 21,551 78,370
Other income/(expense)
Development and management services revenue — — 575 145 — — 720
Interest and other income — 5 — — — — 5
Interest expense (4,096) (11,742) (2,558) (3) (1,571) (10,403) (30,373)
Depreciation and amortization expense (9,618) (12,664) (2,756) (5,310) (4,773) (9,543) (44,664)
General and administrative expense (30) (13) (159) (7) (2) (34) (245)
Loss from early extinguishment of debt — — — — — (1,327) (1,327)
Total other income/(expense) (13,744) (24,414) (4,898) (5,175) (6,346) (21,307) (75,884)
Net income/(loss) $ 5,640 $ 1,106 $ (5,573) $ 1,611 $ (542) $ 244 $ 2,486
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ 2,818 $ 446 $ (2,339) $ 904 $ (182) $ 1,747 4 $ 3,394
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 7 6 $ — $ — $ 98
Fair value lease revenue — 301 5 — (219) 6 — — 82
Termination income — — — — — — —
Depreciation and amortization expense (113) (1,076) 5 374 (455) 6 — (115) (1,385)
Total basis differential 7 (113) (684) 5 374 (667) 6 — (115) (1,205)
Income/(loss) from unconsolidated joint ventures 2,705 (238) (1,965) 237 (182) 1,632 4 2,189
Add:
BXP’s share of depreciation and amortization expense 4,922 7,778 1,004 3,145 1,607 3,588 4 22,044
BXP’s share of FFO $ 7,627 $ 7,540 $ (961) $ 3,382 $ 1,425 $ 5,220 $ 24,233

_____________

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 52.

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.

Q1 2022
Lease expirations - All in-service properties1, 2, 3

as of March 31, 2022

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2022 1,978,046 111,170,183 61.04 4.76 % 4
2023 2,311,845 131,079,407 66.75 5.14 %
2024 3,717,469 211,626,490 64.13 8.63 %
2025 2,660,958 161,138,079 65.66 6.42 %
2026 3,210,115 199,061,060 74.67 6.97 %
2027 2,129,266 130,513,509 69.41 4.92 %
2028 3,032,996 179,351,059 75.30 6.23 %
2029 2,902,069 173,286,591 68.61 6.61 %
2030 2,426,366 173,818,214 74.98 6.07 %
2031 1,881,135 141,162,383 80.54 4.59 %
Thereafter 13,833,156 829,177,012 76.31 28.43 %

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
2022 181,508 5,652,231 31.26 7.93 % 4
2023 119,497 8,497,543 72.46 5.14 %
2024 176,009 15,254,922 92.29 7.25 %
2025 104,139 7,163,994 78.69 3.99 %
2026 110,564 17,115,625 171.73 4.37 %
2027 128,469 14,536,120 123.13 5.18 %
2028 71,871 8,440,543 123.05 3.01 %
2029 131,224 11,057,602 102.46 4.73 %
2030 196,925 12,117,567 76.19 6.97 %
2031 51,763 4,138,188 95.35 1.90 %
Thereafter 653,943 62,880,166 121.68 22.66 %

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
2022 2,159,554 116,822,414 58.35 4.94 % 4
2023 2,431,342 139,576,950 67.07 5.14 %
2024 3,893,478 226,881,412 65.47 8.56 %
2025 2,765,097 168,302,073 66.13 6.28 %
2026 3,320,679 216,176,685 78.17 6.83 %
2027 2,257,735 145,049,629 72.59 4.93 %
2028 3,104,867 187,791,602 76.64 6.05 %
2029 3,033,293 184,344,193 70.00 6.50 %
2030 2,623,291 185,935,781 75.06 6.12 %
2031 1,932,898 145,300,571 80.90 4.43 %
Thereafter 14,487,099 892,057,178 78.37 28.10 %

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 52.

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

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.

Q1 2022
Lease expirations - Boston region in-service properties 1, 2, 3

as of March 31, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 742,233 716,718 4
2023 977,069 841,732
2024 855,908 823,521
2025 1,098,557 1,079,444
2026 841,332 810,021
2027 497,620 489,820
2028 1,035,186 1,035,186
2029 906,072 776,486
2030 1,329,605 1,322,932
2031 553,166 488,586
Thereafter 4,129,483 3,274,971

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
2022 138,066 138,066
2023 45,536 45,221
2024 90,541 90,541
2025 38,874 38,874
2026 26,512 26,512
2027 73,941 67,627
2028 45,229 45,229
2029 56,791 55,441
2030 88,800 54,405
2031 4,266 4,266
Thereafter 181,453 141,343

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
2022 880,299 854,784 4
2023 1,022,605 886,953
2024 946,449 914,062
2025 1,137,431 1,118,318
2026 867,844 836,533
2027 571,561 557,447
2028 1,080,415 1,080,415
2029 962,863 831,927
2030 1,418,405 1,377,337
2031 557,432 492,852
Thereafter 4,310,936 3,416,314

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 52.

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.

Q1 2022
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of March 31, 2022

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 2022 84,538 77,749 4
Q2 2022 124,372 124,341
Q3 2022 195,213 192,481
Q4 2022 338,110 322,147
Total 2022 742,233 716,718
Q1 2023 275,468 204,983
Q2 2023 185,461 179,826
Q3 2023 152,791 137,640
Q4 2023 363,349 319,283
Total 2023 977,069 841,732

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 2022 — —
Q2 2022 126,316 126,316
Q3 2022 11,511 11,511
Q4 2022 239 239
Total 2022 138,066 138,066
Q1 2023 1,224 909
Q2 2023 35,817 35,817
Q3 2023 2,328 2,328
Q4 2023 6,167 6,167
Total 2023 45,536 45,221

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 2022 84,538 77,749 4
Q2 2022 250,688 250,657
Q3 2022 206,724 203,992
Q4 2022 338,349 322,386
Total 2022 880,299 854,784
Q1 2023 276,692 205,892
Q2 2023 221,278 215,643
Q3 2023 155,119 139,968
Q4 2023 369,516 325,450
Total 2023 1,022,605 886,953

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 52.

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.

Q1 2022
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 31, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 50,395 27,717
2023 94,806 52,143
2024 132,131 72,672
2025 12,255 6,740
2026 579,440 318,692
2027 — —
2028 303,413 157,097
2029 349,913 174,957
2030 — —
2031 — —
Thereafter 423,921 211,961

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
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
2031 — —
Thereafter — —

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
2022 50,395 27,717
2023 96,211 52,846
2024 136,464 74,955
2025 29,473 16,121
2026 585,267 321,897
2027 — —
2028 303,413 157,097
2029 388,031 195,922
2030 5,283 2,906
2031 — —
Thereafter 423,921 211,961

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 52.

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.

Q1 2022
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 31, 2022

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 2022 — —
Q2 2022 25,055 13,780
Q3 2022 — —
Q4 2022 25,340 13,937
Total 2022 50,395 27,717
Q1 2023 90,064 49,535
Q2 2023 — —
Q3 2023 4,742 2,608
Q4 2023 — —
Total 2023 94,806 52,143

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 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —
Q1 2023 1,405 703
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 1,405 703

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 2022 — —
Q2 2022 25,055 13,780
Q3 2022 — —
Q4 2022 25,340 13,937
Total 2022 50,395 27,717
Q1 2023 91,469 50,238
Q2 2023 — —
Q3 2023 4,742 2,608
Q4 2023 — —
Total 2023 96,211 52,846

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 52.

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.

Q1 2022
Lease expirations - New York region in-service properties 1, 2, 3

as of March 31, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 521,658 468,660
2023 311,671 222,311
2024 1,304,196 1,060,183
2025 545,906 502,661
2026 524,363 425,301
2027 518,572 423,309
2028 437,120 323,177
2029 659,075 632,708
2030 665,936 623,394
2031 376,287 340,492
Thereafter 4,022,894 2,957,869

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
2022 5,072 5,001
2023 1,847 1,108
2024 11,244 8,623
2025 — —
2026 20,470 17,664
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
2031 13,633 10,123
Thereafter 307,618 230,731

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
2022 526,730 473,661
2023 313,518 223,419
2024 1,315,440 1,068,806
2025 545,906 502,661
2026 544,833 442,965
2027 518,572 423,309
2028 437,120 323,177
2029 662,210 635,843
2030 668,831 625,447
2031 389,920 350,615
Thereafter 4,330,512 3,188,600

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 52.

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.

Q1 2022
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of March 31, 2022

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 2022 — —
Q2 2022 47,787 46,272
Q3 2022 272,675 221,193
Q4 2022 201,196 201,196
Total 2022 521,658 468,660
Q1 2023 25,445 23,785
Q2 2023 46,076 44,524
Q3 2023 111,063 77,929
Q4 2023 129,087 76,074
Total 2023 311,671 222,311

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 2022 — —
Q2 2022 — —
Q3 2022 4,894 4,894
Q4 2022 178 107
Total 2022 5,072 5,001
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 1,847 1,108
Total 2023 1,847 1,108

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 2022 — —
Q2 2022 47,787 46,272
Q3 2022 277,569 226,087
Q4 2022 201,374 201,303
Total 2022 526,730 473,661
Q1 2023 25,445 23,785
Q2 2023 46,076 44,524
Q3 2023 111,063 77,929
Q4 2023 130,934 77,182
Total 2023 313,518 223,419

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 52.

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.

Q1 2022
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 31, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 326,084 310,194 4
2023 611,557 553,351
2024 725,300 681,700
2025 563,308 545,800
2026 645,462 558,013
2027 466,122 461,081
2028 524,953 512,697
2029 264,489 246,205
2030 269,363 267,319
2031 816,495 802,173
Thereafter 928,124 897,607

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
2022 3,080 3,080 4
2023 32,507 32,507
2024 7,115 7,115
2025 26,629 26,629
2026 9,230 9,230
2027 12,951 12,951
2028 9,722 9,722
2029 9,944 9,944
2030 4,590 4,590
2031 6,709 3,355
Thereafter 33,898 33,898

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
2022 329,164 313,274 73.22 4
2023 644,064 585,858
2024 732,415 688,815
2025 589,937 572,429
2026 654,692 567,243
2027 479,073 474,032
2028 534,675 522,419
2029 274,433 256,149
2030 273,953 271,909
2031 823,204 805,528
Thereafter 962,022 931,505

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 52.

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.

Q1 2022
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 31, 2022

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 2022 20,178 20,178 4
Q2 2022 107,091 101,881
Q3 2022 128,903 125,395
Q4 2022 69,912 62,741
Total 2022 326,084 310,194
Q1 2023 95,459 85,590
Q2 2023 37,053 20,842
Q3 2023 337,157 335,068
Q4 2023 141,888 111,852
Total 2023 611,557 553,351

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 2022 30 30 4
Q2 2022 — —
Q3 2022 — —
Q4 2022 3,050 3,050
Total 2022 3,080 3,080
Q1 2023 10,957 10,957
Q2 2023 1,218 1,218
Q3 2023 12,640 12,640
Q4 2023 7,692 7,692
Total 2023 32,507 32,507

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 2022 20,208 20,208 4
Q2 2022 107,091 101,881
Q3 2022 128,903 125,395
Q4 2022 72,962 65,791
Total 2022 329,164 313,274
Q1 2023 106,416 96,547
Q2 2023 38,271 22,060
Q3 2023 349,797 347,708
Q4 2023 149,580 119,544
Total 2023 644,064 585,858

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 52.

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.

Q1 2022
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 31, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 284,511 280,023 4
2023 296,256 287,255
2024 664,931 650,067
2025 421,078 312,759
2026 619,518 553,857
2027 646,952 506,050
2028 224,965 182,709
2029 722,520 695,246
2030 161,462 104,570
2031 130,445 119,906
Thereafter 4,311,884 3,517,157

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
2022 35,290 34,656
2023 38,202 37,726
2024 61,736 56,388
2025 21,418 16,159
2026 44,839 41,815
2027 41,577 37,475
2028 16,920 13,644
2029 23,236 18,439
2030 95,357 95,082
2031 27,155 25,655
Thereafter 130,974 110,782

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
2022 319,801 314,679 4
2023 334,458 324,981
2024 726,667 706,455
2025 442,496 328,918
2026 664,357 595,672
2027 688,529 543,525
2028 241,885 196,353
2029 745,756 713,685
2030 256,819 199,652
2031 157,600 145,561
Thereafter 4,442,858 3,627,939

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 52.

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.

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

Q1 2022
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 31, 2022

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 2022 3,203 3,203 4
Q2 2022 111,152 111,152
Q3 2022 69,459 64,971
Q4 2022 100,697 100,697
Total 2022 284,511 280,023
Q1 2023 25,855 25,855
Q2 2023 58,223 58,223
Q3 2023 148,010 140,479
Q4 2023 64,168 62,697
Total 2023 296,256 287,255

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 2022 — —
Q2 2022 10,890 10,890
Q3 2022 — —
Q4 2022 24,400 23,766
Total 2022 35,290 34,656
Q1 2023 7,775 7,775
Q2 2023 5,008 4,532
Q3 2023 12,905 12,905
Q4 2023 12,514 12,514
Total 2023 38,202 37,726

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 2022 3,203 3,203 4
Q2 2022 122,042 122,042
Q3 2022 69,459 64,971
Q4 2022 125,097 124,463
Total 2022 319,801 314,679
Q1 2023 33,630 33,630
Q2 2023 63,231 62,755
Q3 2023 160,915 153,384
Q4 2023 76,682 75,211
Total 2023 334,458 324,981

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 52.

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.

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

Q1 2022
Lease expirations - CBD properties 1, 2, 3

as of March 31, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 287,890 262,375 4
2023 682,811 547,159
2024 473,240 440,853
2025 334,064 314,951
2026 629,597 598,286
2027 429,485 415,370
2028 960,444 960,444
2029 570,463 439,527
2030 1,291,272 1,250,204
2031 28,779 21,683
Thereafter 4,016,732 3,122,110

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
2022 50,395 27,717
2023 96,211 52,846
2024 136,464 74,955
2025 29,473 16,122
2026 585,267 321,897
2027 — —
2028 303,413 157,097
2029 388,031 195,921
2030 5,283 2,906
2031 — —
Thereafter 423,921 211,961

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
2022 371,679 318,610
2023 266,999 176,901
2024 819,817 573,183
2025 312,749 269,504
2026 307,867 205,999
2027 280,197 184,934
2028 434,915 320,972
2029 597,949 571,582
2030 621,657 578,273
2031 228,644 189,339
Thereafter 4,196,738 3,054,826

All values are in US Dollars.

Q1 2022
Lease expirations - CBD properties (continued) 1, 2, 3

as of March 31, 2022

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
2022 249,558 249,558 4
2023 337,983 337,983
2024 538,426 538,426
2025 327,684 327,684
2026 479,793 479,793
2027 386,650 386,650
2028 510,163 510,163
2029 237,865 237,865
2030 269,865 269,865
2031 787,850 787,850
Thereafter 900,987 900,987

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
2022 85,383 80,261
2023 44,785 35,307
2024 183,933 163,721
2025 172,792 59,214
2026 357,804 289,119
2027 224,369 79,364
2028 170,409 124,877
2029 87,384 55,313
2030 83,718 26,551
2031 86,357 74,318
Thereafter 1,371,824 923,647

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 52.

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.

Q1 2022
Lease expirations - Suburban properties 1, 2, 3

as of March 31, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 592,409 592,409 4
2023 339,794 339,794
2024 473,209 473,209
2025 803,367 803,367
2026 238,247 238,247
2027 142,076 142,076
2028 119,971 119,971
2029 392,400 392,400
2030 127,133 127,133
2031 528,653 471,169
Thereafter 294,204 294,204

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
2022 155,051 155,051
2023 46,519 46,519
2024 495,623 495,623
2025 233,157 233,157
2026 236,966 236,966
2027 238,375 238,375
2028 2,205 2,205
2029 64,261 64,261
2030 47,174 47,174
2031 161,276 161,276
Thereafter 133,774 133,774

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
2022 79,606 63,716
2023 306,081 247,875
2024 193,989 150,389
2025 262,253 244,745
2026 174,899 87,450
2027 92,423 87,382
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
2031 35,354 17,677
Thereafter 61,035 30,518

All values are in US Dollars.

Q1 2022
Lease expirations - Suburban properties (continued) 1, 2, 3

as of March 31, 2022

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
2022 234,418 234,418 4
2023 289,673 289,673
2024 542,734 542,734
2025 269,704 269,704
2026 306,553 306,553
2027 464,160 464,160
2028 71,476 71,476
2029 658,372 658,372
2030 173,101 173,101
2031 71,243 71,243
Thereafter 3,071,034 2,704,293

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 52.

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.

Q1 2022
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 Angus Kelleher 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
Barclays Anthony Powell 212.526.8768
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 Todd Thomas 917.368.2286
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamden 212.296.8319
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb 212.466.7937
RW Baird & Co., Inc. 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 Michael Goldsmith 212.713.2951
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
Q1 2022
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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’s 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 56.

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, (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 and (11) on and after February 4, 2022, which was the end of the performance period for 2019 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2019 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, 2020, 2021 and 2022 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.

Q1 2022
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, 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.

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 (excluding prepaid ground rent expense), 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. as presented in the Company’s consolidated financial statements. EBITDAre should not be considered a substitute to net income attributable to Boston Properties, Inc. 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, 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, 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 (excluding prepaid ground rent expense), 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 attributable to Boston Properties, Inc.’s co 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.

Q1 2022
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. (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. 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. (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 (excluding prepaid ground rent expense), 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.

Q1 2022
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 (excluding prepaid ground rent), prepaid ground rent expense 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.”

Q1 2022
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Mar-22 31-Dec-21
Revenue $ 754,307 $ 731,063
Partners’ share of revenue from consolidated joint ventures (JVs) (77,150) (76,463)
BXP’s share of revenue from unconsolidated JVs 58,415 53,919
BXP’s Share of revenue $ 735,572 $ 708,519
Straight-line rent $ 22,186 $ 30,619
Partners’ share of straight-line rent from consolidated JVs (906) (3,311)
BXP’s share of straight-line rent from unconsolidated JVs 13,823 2,821
BXP’s Share of straight-line rent $ 35,103 $ 30,129
Reinstatements associated with accrued rent (all of which was included within straight-line rent) 1 $ 974 $ —
Partners’ share of reinstatements associated with accrued rent from consolidated JVs (all of which was included within straight-line rent) 1 — —
BXP’s share of reinstatements associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent) 1 1,275 —
BXP’s Share of reinstatements associated with accrued rent (all of which was included within straight-line rent), net 1 $ 2,249 $ —
Fair value lease revenue 2 $ 1,655 $ 1,412
Partners’ share of fair value lease revenue from consolidated JVs 2 (119) (25)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 649 671
BXP’s Share of fair value lease revenue 2 $ 2,185 $ 2,058
Lease termination income $ 2,078 $ (16)
Partners’ share of termination income from consolidated JVs (221) 4
BXP’s share of termination income from unconsolidated JVs 606 88
BXP’s Share of termination income $ 2,463 $ 76
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 $ 21,734 $ 23,087
Partners’ share of parking and other revenue from consolidated JVs (540) (552)
BXP’s share of parking and other revenue from unconsolidated JVs 1,766 1,837
BXP’s Share of parking and other revenue $ 22,960 $ 24,372
Cash rent abatements and deferrals related to COVID-19 $ 1,553 $ 7,196
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs 6 20
BXP’s share of cash rent abatements and deferrals related to COVID-19 from unconsolidated JVs 87 9
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 1,646 $ 7,225
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
Straight-line ground rent expense adjustment $ 744 $ 732
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 145 145
BXP’s Share of straight-line ground rent expense adjustment $ 889 $ 877 Q1 2022
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
31-Mar-22 31-Dec-21
Depreciation and amortization $ 177,624 $ 177,521
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,653) (17,482)
BXP’s share of depreciation and amortization from unconsolidated JVs 22,044 20,401
BXP’s Share of depreciation and amortization $ 182,015 $ 180,440
Lease transaction costs that qualify as rent inducements 3 $ (4,583) $ 3,731
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 2,443 (892)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 371 569
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ (1,769) $ 3,408
2nd generation tenant improvements and leasing commissions $ 36,993 $ 68,989
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (1,441) (5,245)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 10,039 19,267
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 45,591 $ 83,011 Maintenance capital expenditures 4 $ 10,652 $ 33,919
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (1,523) (6,356)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 719 180
BXP’s Share of maintenance capital expenditures 4 $ 9,848 $ 27,743
Interest expense $ 101,228 $ 103,331
Partners’ share of interest expense from consolidated JVs (11,744) (11,987)
BXP’s share of interest expense from unconsolidated JVs 13,246 13,148
BXP’s Share of interest expense $ 102,730 $ 104,492
Capitalized interest $ 13,740 $ 13,839
Partners’ share of capitalized interest from consolidated JVs (46) (43)
BXP’s share of capitalized interest from unconsolidated JVs 1,315 450
BXP’s Share of capitalized interest $ 15,009 $ 14,246
Amortization of financing costs $ 3,568 $ 3,399
Partners’ share of amortization of financing costs from consolidated JVs (497) (408)
BXP’s share of amortization of financing costs from unconsolidated JVs 881 814
BXP’s Share of amortization of financing costs $ 3,952 $ 3,805

_____________

1Represents the reinstatement of accrued rent balances related to tenants that the Company determined are now probable of collection.

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.

Q1 2022
Reconciliations (continued)

for the three months ended March 31, 2022

(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 $ 73,915 $ 101,768 $ 175,683
Straight-line rent 2,619 (315) 2,304
Fair value lease revenue 208 81 289
Termination income — 492 492
Total lease revenue 76,742 102,026 178,768
Parking and other — 1,200 1,200
Total rental revenue 2 76,742 103,226 179,968
Expenses
Operating 28,829 37,888 66,717
Net Operating Income (NOI) 47,913 65,338 113,251
Other income (expense)
Development and management services revenue — 3 3
Interest and other income 1 92 93
Interest expense (20,841) (7,577) (28,418)
Depreciation and amortization expense (16,901) (22,867) (39,768)
General and administrative expense (138) (108) (246)
Total other income (expense) (37,879) (30,457) (68,336)
Net income $ 10,034 $ 34,881 $ 44,915
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 18,529 $ 28,526 $ 47,055
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,384 $ 36,812 $ 66,196
Unearned portion of capitalized fees 4 $ (164) $ 757 $ 593
Partners’ share of select items 3
Partners’ share of parking and other revenue $ — $ 540 $ 540
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 151 $ 497
Partners’ share of depreciation and amortization related to capitalized fees $ 358 $ 441 $ 799
Partners’ share of capitalized interest $ 46 $ — $ 46
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ 2,443 $ 2,443
Partners’ share of management and other fees $ 638 $ 883 $ 1,521
Partners’ share of basis differential depreciation and amortization expense $ (17) $ (180) $ (197)
Partners’ share of basis differential interest and other adjustments $ (4) $ 40 $ 36
Reconciliation of Partners’ share of EBITDAre 5
Partners’ NCI $ 3,037 $ 14,512 $ 17,549
Add:
Partners’ share of interest expense after BXP’s basis differential 8,334 3,410 11,744
Partners’ share of depreciation and amortization expense after BXP’s basis differential 7,101 10,552 17,653
Partners’ share of EBITDAre $ 18,472 $ 28,474 $ 46,946
Q1 2022
--- ---
Reconciliations (continued)

for the three months ended March 31, 2022

(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) 3 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 2 $ 30,697 $ 46,452 $ 77,149
Less: Termination income — 221 221
Rental revenue (excluding termination income) 2 30,697 46,231 76,928
Less: Operating expenses (including partners’ share of management and other fees) 12,168 17,926 30,094
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,529 $ 28,305 $ 46,834
Rental revenue (excluding termination income) 2 $ 30,697 $ 46,231 $ 76,928
Less: Straight-line rent 1,048 (142) 2 906
Fair value lease revenue 83 36 119
Add: Lease transaction costs that qualify as rent inducements — (2,443) (2,443)
Subtotal 29,566 43,894 73,460
Less: Operating expenses (including partners’ share of management and other fees) 12,168 17,926 30,094
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 17,398 $ 25,968 $ 43,366
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 30,697 $ 46,452 $ 77,149
Add: Development and management services revenue — 1 1
Revenue $ 30,697 $ 46,453 $ 77,150

_________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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

4Capitalized 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.

5Amounts 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.

Q1 2022
Reconciliations (continued)

for the three months ended March 31, 2022

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 18,986 $ 25,228 $ 3,599 $ 9,599 $ 7,212 $ 24,873 $ 89,497
Straight-line rent 5,826 9,796 54 1,503 550 7,270 24,999
Reinstatement of straight-line rent 2,004 307 — — — 207 2,518
Fair value lease revenue — 289 — 38 1,156 — 1,483
Termination income 1,134 77 — — — — 1,211
Total lease revenue 27,950 35,697 3,653 11,140 8,918 32,350 119,708
Parking and other 29 1,969 — 45 509 1,506 4,058
Total rental revenue 3 27,979 37,666 3,653 11,185 9,427 33,856 123,766
Expenses
Operating 8,595 12,146 4,328 4 4,399 3,623 12,305 45,396
Net operating income/(loss) 19,384 25,520 (675) 6,786 5,804 21,551 78,370
Other income/(expense)
Development and management services revenue — — 575 145 — — 720
Interest and other income — 5 — — — — 5
Interest expense (4,096) (11,742) (2,558) (3) (1,571) (10,403) (30,373)
Depreciation and amortization expense (9,618) (12,664) (2,756) (5,310) (4,773) (9,543) (44,664)
General and administrative expense (30) (13) (159) (7) (2) (34) (245)
Loss from early extinguishment of debt — — — — — (1,327) (1,327)
Total other income/(expense) (13,744) (24,414) (4,898) (5,175) (6,346) (21,307) (75,884)
Net income/(loss) $ 5,640 $ 1,106 $ (5,573) $ 1,611 $ (542) $ 244 $ 2,486
BXP’s share of reinstatement of straight-line rent $ 1,002 $ 169 $ — $ — $ — $ 104 $ 1,275
BXP’s share of parking and other revenue $ 15 $ 1,044 $ — $ 23 $ 171 $ 513 5 $ 1,766
BXP’s share of amortization of financing costs $ 209 $ 85 $ 79 $ — $ 29 $ 479 5 $ 881
BXP’s share of capitalized interest $ — $ — $ 1,315 $ — $ — $ — 5 $ 1,315
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ 2,705 $ (238) $ (1,965) $ 237 $ (182) $ 1,632 5 $ 2,189
Add:
BXP’s share of interest expense 2,049 6,212 1,060 2 529 3,394 5 13,246
BXP’s share of depreciation and amortization expense 4,922 7,778 6 1,004 3,145 7 1,607 3,588 5 22,044
BXP’s share of loss from early extinguishment of debt — — — — — 265 265
BXP’s share of EBITDAre $ 9,676 $ 13,752 6 $ 99 $ 3,384 7 $ 1,954 $ 8,879 5 $ 37,744 Q1 2022
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 13,990 $ 20,172 6 $ 1,827 $ 5,381 7 $ 3,174 $ 13,510 5 $ 58,054
BXP’s share of operating expenses 4,297 6,415 1,983 2,200 1,219 4,619 5 20,733
BXP’s share of net operating income/(loss) 9,693 13,757 6 (156) 3,181 7 1,955 8,891 5 37,321
Less:
BXP’s share of termination income 567 39 — — — — 606
BXP’s share of net operating income/(loss) (excluding termination income) 9,126 13,718 (156) 3,181 1,955 8,891 5 36,715
Less:
BXP’s share of straight-line rent 3,915 5,278 6 27 759 7 184 3,660 5 13,823
BXP’s share of fair value lease revenue — 460 6 — (200) 7 389 — 649
Add:
BXP’s share of straight-line ground rent expense adjustment — — 145 — — — 145
BXP’s share of lease transaction costs that qualify as rent inducements — 185 — — 12 174 5 371
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 5,211 $ 8,165 6 $ (38) $ 2,622 7 $ 1,394 $ 5,405 5 $ 22,759
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 13,990 $ 20,172 6 $ 1,827 $ 5,381 7 $ 3,174 $ 13,510 5 $ 58,054
Add:
BXP’s share of development and management services revenue — — 288 73 — — 361
BXP’s share of revenue $ 13,990 $ 20,172 6 $ 2,115 $ 5,454 7 $ 3,174 $ 13,510 5 $ 58,415

_____________

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 52.

4 Includes approximately $290 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.

Q1 2022
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-Dec-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 184,537 $ 7,310
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 184,537 9,935
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 20,544 990
Noncontrolling interest in property partnerships 18,204 13,980
Net income 223,285 24,905
Add:
Interest expense 103,331 111,991
Losses from early extinguishments of debt 44,284 —
Loss from unconsolidated joint ventures 825 79,700
Depreciation and amortization expense 177,521 168,013
Transaction costs 2,066 277
Payroll and related costs from management services contracts 3,321 3,009
General and administrative expense 33,649 31,053
Less:
Interest and other income (loss) 1,564 1,676
Gains from investments in securities 1,882 4,296
Gains on sales of real estate 115,556 5,259
Direct reimbursements of payroll and related costs from management services contracts 3,321 3,009
Development and management services revenue 7,516 6,356
Net Operating Income (NOI) 458,443 398,352
Add:
BXP’s share of NOI from unconsolidated joint ventures 33,278 13,336
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,841 40,639
BXP’s Share of NOI 443,880 371,049
Less:
Termination income (16) 551
BXP’s share of termination income from unconsolidated joint ventures 88 771
Add:
Partners’ share of termination income from consolidated joint ventures (4) 95
BXP’s Share of NOI (excluding termination income) $ 443,804 $ 369,822
Net Operating Income (NOI) $ 458,443 $ 398,352
Less:
Termination income (16) 551
NOI from non Same Properties (excluding termination income) 8,587 5,187
Same Property NOI (excluding termination income) 449,872 392,614
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 47,845 40,544
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,591 (76)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 33,190 12,565
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 7,696 649
BXP’s Share of Same Property NOI (excluding termination income) $ 429,112 $ 363,910
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 65,202
Change in BXP’s Share of Same Property NOI (excluding termination income) 17.9 %
Q1 2022
--- ---
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-Dec-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 184,537 $ 7,310
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 184,537 9,935
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 20,544 990
Noncontrolling interest in property partnerships 18,204 13,980
Net income 223,285 24,905
Add:
Interest expense 103,331 111,991
Losses from early extinguishments of debt 44,284 —
Loss from unconsolidated joint ventures 825 79,700
Depreciation and amortization expense 177,521 168,013
Transaction costs 2,066 277
Payroll and related costs from management services contracts 3,321 3,009
General and administrative expense 33,649 31,053
Less:
Interest and other income (loss) 1,564 1,676
Gains from investments in securities 1,882 4,296
Gains on sales of real estate 115,556 5,259
Direct reimbursements of payroll and related costs from management services contracts 3,321 3,009
Development and management services revenue 7,516 6,356
Net Operating Income (NOI) 458,443 398,352
Less:
Straight-line rent 30,619 13,187
Fair value lease revenue 1,412 614
Termination income (16) 551
Add:
Straight-line ground rent expense adjustment 1 680 799
Lease transaction costs that qualify as rent inducements 2 3,731 1,333
NOI - cash (excluding termination income) 430,839 386,132
Less:
NOI - cash from non Same Properties (excluding termination income) 5,098 4,749
Same Property NOI - cash (excluding termination income) 425,741 381,383
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 45,401 34,966
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) 1,163 (111)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 30,412 21,175
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 7,524 629
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 404,391 $ 366,852
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 37,539
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 10.2 %

_____________

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 $52 and $144 for the three months ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2024 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 2024 may vary significantly.

2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP.

Q1 2022
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-21 31-Dec-20
Revenue
Lease $ 685,817 $ 639,357
Parking and other 14,494 15,903
Insurance proceeds 2,444 —
Hotel revenue 632 464
Development and management services 6,803 6,356
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,009
Total revenue 713,695 665,089
Expenses
Operating 118,516 117,891
Real estate taxes 136,395 138,308
Demolition costs 18 (5)
Restoration expenses related to insurance claim 2,460 —
Hotel 2,051 1,178
General and administrative 44,959 31,053
Payroll and related costs from management services contracts 3,505 3,009
Transaction costs 331 277
Depreciation and amortization 176,565 168,013
Total expenses 484,800 459,724
Other income (expense)
Income (loss) from unconsolidated joint ventures 5,225 (79,700)
Gains (losses) on sales of real estate — 5,259
Gains from investments in securities 1,659 4,296
Interest and other income (loss) 1,168 1,676
Losses from early extinguishments of debt (898) —
Interest expense (107,902) (111,991)
Net income 128,147 24,905
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (16,467) (13,980)
Noncontrolling interest - common units of the Operating Partnership (11,084) (990)
Net income attributable to Boston Properties, Inc. 100,596 9,935
Preferred dividends (2,560) (2,625)
Preferred stock redemption charge (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.59 $ 0.05
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.59 $ 0.05

64

Document

Exhibit 99.2

bxp-color.gif

BXP ANNOUNCES 1st QUARTER 2022 RESULTS; REPORTS Q1 EPS OF $0.91 AND FFO PER SHARE OF $1.82

Exceeds Q1 2022 Guidance for EPS and FFO; Executes 1.2 Million SF of Leases in Q1, and Agrees to 2nd Acquisition in Seattle, WA in Q2 2022

BOSTON, MA, May 2, 2022 - 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 first quarter ended March 31, 2022.

Financial highlights for the first quarter include:

•Revenue grew approximately 6% to $754.3 million for the quarter ended March 31, 2022, as compared to $713.7 million for the quarter ended March 31, 2021.

•Net income attributable to common shareholders of $143.0 million, or $0.91 per diluted share (EPS), compared to $91.6 million, or $0.59 per diluted share, for the quarter ended March 31, 2021.

•Funds from Operations (FFO) of $286.1 million, or $1.82 per diluted share for the quarter ended March 31, 2022, compared to FFO of $243.8 million, or $1.56 per diluted share, for the quarter ended March 31, 2021.

•EPS and FFO per share exceeded the mid-point of BXP’s guidance due primarily to $0.07 per share of improvement in portfolio performance, $0.01 per share of the impact of reinstating accrual basis accounting for certain tenants that were previously reclassified to cash basis accounting and $0.01 per share of lower general and administrative expenses. Additionally, Q1 2022 EPS included a gain on sale of $0.13 per share.

BXP provided guidance for (1) second quarter 2022 EPS of $0.79 - $0.81 and FFO of $1.84 - $1.86 per diluted share and (2) full year 2022 EPS of $5.32 - $5.42 and FFO of $7.40 - $7.50 per diluted share. See “EPS and FFO per Share Guidance” below.

First quarter and recent business highlights include:

•Executed approximately 1.2 million square feet of leases in the first quarter having a weighted-average lease term of 7.3 years. Executed leases for the quarter included an approximately 330,000 square foot renewal and expansion with a financial services firm at 601 Lexington Avenue in New York City, NY. The leasing volume achieved in Q1 of 2022 is in line with BXP’s 10-year first quarter leasing average, and double the volume from Q1 2021.

•In April 2022, executed an agreement to purchase Madison Centre, an approximately 760,000 square foot, 37-story Class A office building in Seattle, WA, for a gross purchase price of approximately $730 million. As one of the newest commercial high rises in the city with one of the most generous amenity offerings in the market, Madison Centre will serve as

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a showpiece and foundational asset for BXP’s expansion in the Seattle market. There can be no assurance that this acquisition will occur on the terms currently contemplated or at all.

•In April 2022, signed an approximately 570,000 rentable square foot lease with AstraZeneca to lease the first phase of a future life sciences development at 290 Binney Street in Cambridge, MA. This future development site is located in the heart of Kendall Square, and when complete, will include two buildings totaling approximately 1.1 million rentable square feet of life sciences space as well as an approximately 400,000 square foot residential building. The lease and the commencement of development are subject to various conditions, some of which are not within BXP’s control.

•Commenced two development projects:

•the redevelopment of 651 Gateway in South San Francisco, CA. 651 Gateway is an office building that is being converted to an approximately 327,000 net rentable square foot life sciences space. This property is owned by a joint venture in which BXP has a 50% interest.

•the development of the first phase of Platform 16 in San Jose, CA. Platform 16 is a Class A office project that, after completion of all phases, is expected to be approximately 1.1 million square feet. The first phase is approximately 390,000 net rentable square feet. This property is owned by a joint venture in which BXP has a 55% interest.

•Disposed of 195 West Street, an approximately 63,500 square foot office building in Waltham, MA for a gross sales price of $37.7 million and net proceeds of $35.4 million. BXP recognized a gain on sale of approximately $22.7 million.

•Refinanced the mortgage loan collateralized by Metropolitan Square located in Washington, DC. The new loans aggregate approximately $420.0 million and mature on April 9, 2024. The previous mortgage loan had an outstanding balance of approximately $294.1 million and was scheduled to mature on July 7, 2022. This property is owned by a joint venture in which BXP has a 20% interest.

•In April 2022, released BXP’s 2021 ESG Report, which provides details on BXP’s ESG approach, goals, key performance indicators, leadership, and reporting methodologies related to environmental impact, social impact, and governance.

•Named to Barron’s 10 Most Sustainable REITs in the U.S. BXP improved from 8th place to 3rd place in the 2nd year that Barron’s produced a REIT ranking.

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 March 31, 2022. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

BXP’s guidance for the second quarter and full year 2022 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 the impacts

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of any potential (1) capital markets activity, (2) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (3) 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. BXP 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 BXP’s actual results will not differ materially from the estimates set forth below.

Second Quarter 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.79 $ 0.81 $ 5.32 $ 5.42
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05 4.30 4.30
Projected Company share of (gains)/losses on sales of real estate — — (2.22) (2.22)
Projected FFO per share (diluted) $ 1.84 $ 1.86 $ 7.40 $ 7.50

BXP will host a conference call on Tuesday, May 3, 2022 at 11:00 AM Eastern Time, open to the general public, to discuss the first quarter 2022 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 7770877. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 7770877. There will also be a live audio webcast of the call, which may be accessed in the Investors section of BXP’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investors section of BXP’s website and archived for up to twelve months following the call.

Additionally, a copy of BXP’s first quarter 2022 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

Boston Properties (NYSE: BXP) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP 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 unconsolidated joint ventures, the Company’s portfolio totals 53.1 million square feet and 201 properties, including eleven properties under construction/redevelopment. For more information about BXP, 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,” “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

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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, the risks and uncertainties related to the impact of the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, the impact of geopolitical conflicts, including the ongoing war in Ukraine, and the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, increasing interest rates, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and tenant behavior, as well as possible future governmental responses, risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets, risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets, 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, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in the Company’s filings with the SEC. 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.

Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
March 31, 2022 December 31, 2021
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 22,472,940 $ 22,298,103
Construction in progress 846,775 894,172
Land held for future development 582,511 560,355
Right of use assets - finance leases 237,501 237,507
Right of use assets - operating leases 169,248 169,778
Less: accumulated depreciation (5,995,760) (5,883,961)
Total real estate 18,313,215 18,275,954
Cash and cash equivalents 436,271 452,692
Cash held in escrows 46,072 48,466
Investments in securities 36,032 43,632
Tenant and other receivables, net 56,132 70,186
Related party note receivable, net 78,544 78,336
Note receivables, net 9,674 9,641
Accrued rental income, net 1,243,395 1,226,745
Deferred charges, net 609,205 618,798
Prepaid expenses and other assets 128,472 57,811
Investments in unconsolidated joint ventures 1,518,622 1,482,997
Total assets $ 22,475,634 $ 22,365,258
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,268,745 $ 3,267,914
Unsecured senior notes, net 9,486,379 9,483,695
Unsecured line of credit 255,000 145,000
Unsecured term loan, net — —
Lease liabilities - finance leases 245,554 244,421
Lease liabilities - operating leases 204,677 204,561
Accounts payable and accrued expenses 304,576 320,775
Dividends and distributions payable 170,869 169,859
Accrued interest payable 90,861 94,796
Other liabilities 396,283 391,441
Total liabilities 14,422,944 14,322,462
Commitments and contingencies — —
Redeemable deferred stock units 11,031 9,568
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; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,790,614 and 156,623,749 issued and 156,711,714 and 156,544,849 outstanding at March 31, 2022 and December 31, 2021, respectively 1,567 1,565
Additional paid-in capital 6,509,663 6,497,730
Dividends in excess of earnings (636,421) (625,891)
Treasury common stock at cost, 78,900 shares at March 31, 2022 and December 31, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (28,485) (36,662)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,843,602 5,834,020
Noncontrolling interests:
Common units of the Operating Partnership 649,602 642,655
Property partnerships 1,548,455 1,556,553
Total equity 8,041,659 8,033,228
Total liabilities and equity $ 22,475,634 $ 22,365,258

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31,
2022 2021
(in thousands, except for per share amounts)
Revenue
Lease $ 718,120 $ 685,817
Parking and other 21,734 16,938
Hotel revenue 4,557 632
Development and management services 5,831 6,803
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505
Total revenue 754,307 713,695
Expenses
Operating
Rental 270,255 257,389
Hotel 4,840 2,051
General and administrative 43,194 44,959
Payroll and related costs from management services contracts 4,065 3,505
Transaction costs — 331
Depreciation and amortization 177,624 176,565
Total expenses 499,978 484,800
Other income (expense)
Income from unconsolidated joint ventures 2,189 5,225
Gains on sales of real estate 22,701 —
Interest and other income (loss) 1,228 1,168
Gains (losses) from investments in securities (2,262) 1,659
Losses from early extinguishment of debt — (898)
Interest expense (101,228) (107,902)
Net income 176,957 128,147
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (17,549) (16,467)
Noncontrolling interest—common units of the Operating Partnership (16,361) (11,084)
Net income attributable to Boston Properties, Inc. 143,047 100,596
Preferred dividends — (2,560)
Preferred stock redemption charge — (6,412)
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.91 $ 0.59
Weighted average number of common shares outstanding 156,650 155,928
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.91 $ 0.59
Weighted average number of common and common equivalent shares outstanding 157,004 156,099

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended March 31,
2022 2021
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Add:
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Noncontrolling interest - common units of the Operating Partnership 16,361 11,084
Noncontrolling interests in property partnerships 17,549 16,467
Net income 176,957 128,147
Add:
Depreciation and amortization expense 177,624 176,565
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,653) (16,457)
Company’s share of depreciation and amortization from unconsolidated joint ventures 22,044 18,412
Corporate-related depreciation and amortization (404) (440)
Less:
Gains on sale of investment included within income from unconsolidated joint ventures — 10,257
Gains on sales of real estate 22,701 —
Noncontrolling interests in property partnerships 17,549 16,467
Preferred dividends — 2,560
Preferred stock redemption charge — 6,412
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 318,318 270,531
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 32,182 26,728
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 286,136 $ 243,803
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.89 % 90.12 %
Weighted average shares outstanding - basic 156,650 155,928
FFO per share basic $ 1.83 $ 1.56
Weighted average shares outstanding - diluted 157,004 156,099
FFO per share diluted $ 1.82 $ 1.56

(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
March 31, 2022 December 31, 2021
Boston 91.8 % 91.4 %
Los Angeles 88.4 % 88.8 %
New York 87.5 % 87.6 %
San Francisco 87.8 % 87.3 %
Seattle 87.7 % 90.9 %
Washington, DC 88.1 % 87.2 %
Total Portfolio 89.1 % 88.8 %

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

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