Equibles

8-K

BXP, Inc. (BXP)

8-K 2020-04-28 For: 2020-04-28
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): April 28, 2020

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><br>of Incorporation) (Commission File Number) (IRS Employer<br><br>Identification No.)
Boston Properties Limited Partnership Delaware 0-50209 04-3372948
(State or Other Jurisdiction<br><br>of Incorporation) (Commission File Number) (IRS Employer<br><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)
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☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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Securities registered pursuant to Section 12(b) of the Act:
Registrant Title of each class Name of each exchange on which registered
Boston Properties, Inc. Common Stock, par value 0.01 per share New York Stock Exchange
Boston Properties, Inc. Depository Shares Each Representing 1/100th of a share New York Stock Exchange
of 5.25% Series B Cumulative Redeemable Preferred Stock, par value 0.01 per share

All values are in US Dollars.

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 April 28, 2020, 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 2020. 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 ended March 31, 2020.
*99.2 Press release dated April 28, 2020.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase 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: April 28, 2020

		Exhibit

Exhibit 99.1

a17fifty.jpg

bxplogosupplementalcovera18.jpg

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2020

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s complete portfolio totals 51.8 million square feet and 196 properties, including 10 properties under construction/redevelopment, and consists of 177 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned eight consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

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 priority allocations, income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 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 Michael E. LaBelle
Boston, MA 02199 Stock Exchange Listing Boston, MA 02199 Executive Vice President, Chief Financial Officer
www.bxp.com New York Stock Exchange investors.bxp.com at 617.236.3352 or
(t) 617.236.3300 investorrelations@bxp.com mlabelle@bxp.com
(f) 617.236.3311 (t) 617.236.3822
(f) 617.236.3311 Sara Buda
Vice President, Investor Relations
at 617.236.3429 or
sbuda@bxp.com

(Cover photo: 17Fifty Presidents Street, Reston, VA)

Q1 2020
Table of contents Page
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OVERVIEW
Company Profile 1
FINANCIAL INFORMATION
Financial Highlights 2
Consolidated Balance Sheets 3
Consolidated Income Statements 4
Funds From Operations (FFO) 5
Funds Available for Distribution (FAD) 6
Net Operating Income (NOI) 7
Same Property Net Operating Income (NOI) by Reportable Segment 9
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 10
Acquisitions and Dispositions 11
DEVELOPMENT ACTIVITY
Construction in Progress 12
Land Parcels and Purchase Options 14
LEASING ACTIVITY
Leasing Activity 15
PROPERTY STATISTICS
Portfolio Overview 16
Residential and Hotel Performance 17
In-Service Property Listing 19
Top 20 Tenants Listing and Portfolio Tenant Diversification 23
Occupancy by Location 24
DEBT AND CAPITALIZATION
Capital Structure 25
Debt Analysis 26
Senior Unsecured Debt Covenant Compliance Ratios 27
Net Debt to EBITDAre 28
Debt Ratios 29
JOINT VENTURES
Consolidated Joint Ventures 30
Unconsolidated Joint Ventures 32
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 62
Q1 2020
Company profile

SNAPSHOT

(as of March 31, 2020)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures) 196
Total Square Feet (includes unconsolidated joint ventures) 51.8 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^ 173.1 million
Closing Price, at the end of the quarter $92.23 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 4.25%
Consolidated Market Capitalization ^1^ $28.2 billion
BXP’s Share of Market Capitalization ^1, 2^ $28.1 billion
Senior Debt Ratings A- (S&P); Baa1 (Moody’s)

STRATEGY

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

• maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC;
• 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;
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• 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;
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• 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;
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• ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make new investments at opportune points in time; and
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• 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.
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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 Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan Chair of Compensation Committee
Karen E. Dykstra Peter D. Johnston Executive Vice President, Washington, DC Region
Carol B. Einiger Bryan J. Koop Executive Vice President, Boston Region
Diane J. Hoskins Robert E. Pester Executive Vice President, San Francisco Region
Matthew J. Lustig Chair of Nominating & Corporate Governance Committee John F. Powers Executive Vice President, New York Region
Frank D. Burt Senior Vice President and Chief Legal Officer
David A. Twardock Chair of Audit Committee Michael R. Walsh Senior Vice President and Chief Accounting Officer
William H. Walton, III

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^1^ For additional detail, see page 25.
^2^ For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
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1

Q1 2020
Financial highlights

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

Three Months Ended
31-Mar-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 140,824
Net income attributable to Boston Properties, Inc. per share - diluted $ 3.20 $ 0.91
FFO attributable to Boston Properties, Inc. common shareholders ^1^ $ 284,062 $ 289,937
Diluted FFO per share ^1^ $ 1.83 $ 1.87
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) ^2^ $ 235,890 $ 185,828
Selected items:
Revenue $ 752,556 $ 757,501
Recoveries from tenants $ 120,942 $ 121,147
Service income from tenants $ 2,972 $ 3,312
BXP’s Share of revenue ^3^ $ 720,387 $ 722,647
BXP’s Share of straight-line rent ^3^ $ 31,262 $ 43,501
BXP’s Share of fair value lease revenue ^3, 4^ $ 3,189 $ 3,298
BXP’s Share of termination income ^3^ $ 2,161 $ 1,397
Ground rent expense $ 3,574 $ 3,602
Capitalized interest $ 14,149 $ 13,658
Capitalized wages $ 2,826 $ 2,327
Income (loss) from unconsolidated joint ventures $ (369 ) $ (936 )
BXP’s share of FFO from unconsolidated joint ventures ^5^ $ 17,963 $ 13,554
Net income attributable to noncontrolling interests in property partnerships $ 19,486 $ 16,338
FFO attributable to noncontrolling interests in property partnerships ^6^ $ 37,113 $ 34,454
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 8,197 $ 9,843
Below-market rents (included within Other Liabilities) $ 34,706 $ 39,343
Accrued rental income liability (included within Other Liabilities) $ 129,567 $ 125,964
Ratios:
Interest Coverage Ratio (excluding capitalized interest) ^7^ 4.22 4.10
Interest Coverage Ratio (including capitalized interest) ^7^ 3.65 3.55
Fixed Charge Coverage Ratio ^7^ 3.03 2.84
BXP’s Share of Net Debt to BXP’s Share of EBITDAre ^8^ 6.59 6.38
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) ^9^ 4.8 % 5.2 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash ^9^ 5.0 % (0.1 )%
FAD Payout Ratio ^2^ 71.92 % 91.12 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 64.2 % 63.3 %
Occupancy of In-Service Properties 92.9 % 93.0 %
Capitalization:
Consolidated Debt $ 12,061,224 $ 11,811,806
BXP’s Share of Debt ^10^ $ 11,890,196 $ 11,592,062
Consolidated Market Capitalization $ 28,224,392 $ 35,819,952
Consolidated Debt/Consolidated Market Capitalization 42.73 % 32.98 %
BXP’s Share of Market Capitalization ^10^ $ 28,053,364 $ 35,600,208
BXP’s Share of Debt/BXP’s Share of Market Capitalization ^10^ 42.38 % 32.56 %

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^1^ For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 5.
^2^ For a quantitative reconciliation of FAD, see page 6. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.
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^3^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
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^4^ Represents 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.^^^^
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^5^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 34.
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^6^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 31.
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^7^ For a quantitative reconciliation for the three months ended March 31, 2020 and December 31, 2019, see page 29.
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^8^ For a quantitative reconciliation for the three months ended March 31, 2020 and December 31, 2019, see page 28.
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^9^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 9.
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^10^ For a quantitative reconciliation for March 31, 2020, see page 25.
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2

Q1 2020
Consolidated Balance Sheets

(unaudited and in thousands)

31-Mar-20 31-Dec-19
ASSETS
Real estate $ 21,273,137 $ 21,458,412
Construction in progress 804,179 789,736
Land held for future development 264,893 254,828
Right of use assets - finance leases 237,394 237,394
Right of use assets - operating leases 148,057 148,640
Less accumulated depreciation (5,209,487 ) (5,266,798 )
Total real estate 17,518,173 17,622,212
Cash and cash equivalents 660,733 644,950
Cash held in escrows 197,845 46,936
Investments in securities 28,101 36,747
Tenant and other receivables, net 89,431 112,807
Related party note receivable, net 78,800 80,000
Note receivable, net 15,794 15,920
Accrued rental income, net 1,059,677 1,038,788
Deferred charges, net 667,076 689,213
Prepaid expenses and other assets 136,730 41,685
Investments in unconsolidated joint ventures 1,377,338 955,647
Total assets $ 21,829,698 $ 21,284,905
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,919,157 $ 2,922,408
Unsecured senior notes, net 8,393,009 8,390,459
Unsecured line of credit 250,000 —
Unsecured term loan, net 499,058 498,939
Lease liabilities- finance leases 227,067 224,042
Lease liabilities - operating leases 200,573 200,180
Accounts payable and accrued expenses 293,831 377,553
Dividends and distributions payable 171,026 170,713
Accrued interest payable 82,388 90,016
Other liabilities 366,852 387,994
Total liabilities 13,402,961 13,262,304
Commitments and contingencies — —
Redeemable deferred stock units 5,854 8,365
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 200,000 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,393,455 and 154,869,198 issued and 155,314,555 and 154,790,298 outstanding at March 31, 2020 and December 31, 2019, respectively 1,553 1,548
Additional paid-in capital 6,321,475 6,294,719
Dividends in excess of earnings (416,740 ) (760,523 )
Treasury common stock at cost, 78,900 shares at March 31, 2020 and December 31, 2019 (2,722 ) (2,722 )
Accumulated other comprehensive loss (55,700 ) (48,335 )
Total stockholders’ equity attributable to Boston Properties, Inc. 6,047,866 5,684,687
Noncontrolling interests:
Common units of the Operating Partnership 636,572 600,860
Property partnerships 1,736,445 1,728,689
Total equity 8,420,883 8,014,236
Total liabilities and equity $ 21,829,698 $ 21,284,905

3

Q1 2020
Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-20 31-Dec-19
Revenue
Lease $ 710,111 $ 706,349
Parking and other 24,504 26,727
Hotel revenue 6,825 11,793
Development and management services 7,879 10,473
Direct reimbursements of payroll and related costs from management services contracts 3,237 2,159
Total revenue 752,556 757,501
Expenses
Operating 127,800 131,246
Real estate taxes 135,019 136,911
Demolition costs 147 762
Hotel operating 6,821 8,318
General and administrative ^1^ 36,454 32,797
Payroll and related costs from management services contracts 3,237 2,159
Transaction costs 615 569
Depreciation and amortization 171,094 169,897
Total expenses 481,187 482,659
Other income (expense)
Income (loss) from unconsolidated joint ventures (369 ) (936 )
Gains (losses) on sales of real estate 410,165 (57 )
Gains (losses) from investments in securities^1^ (5,445 ) 2,177
Interest and other income 3,017 4,393
Losses from early extinguishments of debt — (1,530 )
Interest expense (101,591 ) (102,880 )
Net income 577,146 176,009
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (19,486 ) (16,338 )
Noncontrolling interest - common units of the Operating Partnership ^2^ (57,539 ) (16,222 )
Net income attributable to Boston Properties, Inc. 500,121 143,449
Preferred dividends (2,625 ) (2,625 )
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 140,824
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 3.20 $ 0.91
Net income attributable to Boston Properties, Inc. per share - diluted $ 3.20 $ 0.91

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^1^ General and administrative expense includes $(5.4) million and $2.2 million and Gains (losses) from investments in securities include $(5.4) million and $2.2 million for the three months ended March 31, 2020 and December 31, 2019, respectively, related to the Company’s deferred compensation plan.
^2^ For additional detail, see page 5.
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4

Q1 2020
Funds from operations (FFO) ^1^
(unaudited and dollars in thousands, except per share amounts) Three Months Ended
31-Mar-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 140,824
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539 16,222
Noncontrolling interests in property partnerships 19,486 16,338
Net income 577,146 176,009
Add:
Depreciation and amortization expense 171,094 169,897
Noncontrolling interests in property partnerships' share of depreciation and amortization ^2^ (17,627 ) (18,116 )
BXP's share of depreciation and amortization from unconsolidated joint ventures ^3^ 18,332 14,458
Corporate-related depreciation and amortization (469 ) (477 )
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures — (32 )
Gains (losses) on sales of real estate 410,165 (57 )
Noncontrolling interests in property partnerships 19,486 16,338
Preferred dividends 2,625 2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 316,200 322,897
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 32,138 32,960
FFO attributable to Boston Properties, Inc. common shareholders $ 284,062 $ 289,937
Boston Properties, Inc.’s percentage share of Basic FFO 89.84 % 89.79 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.16 % 10.21 %
Basic FFO per share $ 1.83 $ 1.87
Weighted average shares outstanding - basic 155,011 154,667
Diluted FFO per share $ 1.83 $ 1.87
Weighted average shares outstanding - diluted 155,258 154,992
RECONCILIATION TO DILUTED FFO
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Three Months Ended
31-Mar-20 31-Dec-19
Basic FFO $ 316,200 $ 322,897
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 316,200 322,897
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 32,092 32,898
Boston Properties, Inc.’s share of Diluted FFO $ 284,108 $ 289,999
RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO
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Three Months Ended
31-Mar-20 31-Dec-19
Shares/units for Basic FFO 172,549 172,250
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 247 325
Shares/units for Diluted FFO 172,796 172,575
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,538 17,583
Boston Properties, Inc.’s share of shares/units for Diluted FFO 155,258 154,992
Boston Properties, Inc.’s percentage share of Diluted FFO 89.85 % 89.81 %

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 31.
--- ---
^3^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 34.
--- ---

5

Q1 2020
Funds available for distributions (FAD) ^1^

(dollars in thousands)

Three Months Ended
31-Mar-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 140,824
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539 16,222
Noncontrolling interests in property partnerships 19,486 16,338
Net income 577,146 176,009
Add:
Depreciation and amortization expense 171,094 169,897
Noncontrolling interests in property partnerships’ share of depreciation and amortization ^2^ (17,627 ) (18,116 )
BXP’s share of depreciation and amortization from unconsolidated joint ventures ^3^ 18,332 14,458
Corporate-related depreciation and amortization (469 ) (477 )
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures — (32 )
Gains (losses) on sales of real estate 410,165 (57 )
Noncontrolling interests in property partnerships 19,486 16,338
Preferred dividends 2,625 2,625
Basic FFO 316,200 322,897
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements ^1,^ ^4^ 4,023 9,403
BXP’s Share of hedge amortization ^1^ 1,435 1,435
BXP’s Share of straight-line ground rent expense adjustment ^1, 5^ 1,017 1,056
Stock-based compensation 17,525 7,705
Non-real estate depreciation 469 477
Unearned portion of capitalized fees from consolidated joint ventures ^6^ 56 1,300
Less:
BXP’s Share of straight-line rent ^1^ 31,262 43,501
BXP’s Share of fair value lease revenue ^1, 7^ 3,189 3,298
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) ^1^ — —
BXP’s Share of 2nd generation tenant improvements and leasing commissions ^1^ 49,943 86,041
BXP’s Share of maintenance capital expenditures ^1, 8^ 20,244 25,457
Hotel improvements, equipment upgrades and replacements 197 148
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 235,890 $ 185,828
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 169,652 $ 169,334
FAD Payout Ratio^1^(B÷A) 71.92 % 91.12 %

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 31.
--- ---
^3^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 34.
--- ---
^4^ Consists 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.
--- ---
^5^ Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 2.
--- ---
^6^ See page 58 for additional information.
--- ---
^7^ Represents 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.^^
--- ---
^8^ Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
--- ---

6

Q1 2020
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-20 31-Mar-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 98,105
Preferred dividends 2,625 2,625
Net income attributable to Boston Properties, Inc. 500,121 100,730
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 57,539 11,599
Noncontrolling interest in property partnerships 19,486 18,830
Net income 577,146 131,159
Add:
Interest expense 101,591 101,009
Impairment loss — 24,038
Depreciation and amortization expense 171,094 164,594
Transaction costs 615 460
Payroll and related costs from management services contracts 3,237 3,395
General and administrative expense 36,454 41,762
Less:
Interest and other income 3,017 3,753
Gains (losses) from investments in securities (5,445 ) 2,969
Gains (losses) on sales of real estate 410,165 (905 )
Income (loss) from unconsolidated joint ventures (369 ) 213
Direct reimbursements of payroll and related costs from management services contracts 3,237 3,395
Development and management services revenue 7,879 9,277
Net Operating Income (NOI) 471,653 447,715
Add:
BXP’s share of NOI from unconsolidated joint ventures ^1^ 28,758 25,349
Less:
Partners’ share of NOI from consolidated joint ventures (after priority allocations and income allocation to private REIT shareholders) ^2^ 47,661 47,085
BXP’s Share of NOI 452,750 425,979
Less:
Termination income 2,399 6,936
BXP’s share of termination income from unconsolidated joint ventures ^1^ — 36
Add:
Partners’ share of termination income from consolidated joint ventures ^2^ 238 118
BXP’s Share of NOI (excluding termination income) $ 450,589 $ 419,125
Net Operating Income (NOI) $ 471,653 $ 447,715
Less:
Termination income 2,399 6,936
NOI from non Same Properties (excluding termination income) ^3^ 16,878 10,046
Same Property NOI (excluding termination income) 452,376 430,733
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after priority allocations and income allocation to private REIT shareholders) ^2^ 47,423 46,967
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after priority allocations and income allocation to private REIT shareholders) ^3^ 136 580
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) ^1^ 28,758 25,313
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) ^3^ 6,214 1,775
BXP’s Share of Same Property NOI (excluding termination income) $ 427,633 $ 407,884

_____________

^1^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 61.
^2^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 58.
--- ---
^3^ Pages 19-22 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, 2020 and therefore are no longer a part of the Company’s property portfolio.
--- ---

7

Q1 2020
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-20 31-Mar-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 98,105
Preferred dividends 2,625 2,625
Net income attributable to Boston Properties, Inc. 500,121 100,730
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 57,539 11,599
Noncontrolling interest in property partnerships 19,486 18,830
Net income 577,146 131,159
Add:
Interest expense 101,591 101,009
Impairment loss — 24,038
Depreciation and amortization expense 171,094 164,594
Transaction costs 615 460
Payroll and related costs from management services contracts 3,237 3,395
General and administrative expense 36,454 41,762
Less:
Interest and other income 3,017 3,753
Gains (losses) from investments in securities (5,445 ) 2,969
Gains (losses) on sales of real estate 410,165 (905 )
Income (loss) from unconsolidated joint ventures (369 ) 213
Direct reimbursements of payroll and related costs from management services contracts 3,237 3,395
Development and management services revenue 7,879 9,277
Net Operating Income (NOI) 471,653 447,715
Less:
Straight-line rent 31,430 22,483
Fair value lease revenue 2,991 6,248
Termination income 2,399 6,936
Add:
Straight-line ground rent expense adjustment ^1^ 811 855
Lease transaction costs that qualify as rent inducements ^2^ 2,399 879
NOI - cash (excluding termination income) 438,043 413,782
Less:
NOI - cash from non Same Properties (excluding termination income) ^3^ 15,415 10,130
Same Property NOI - cash (excluding termination income) 422,628 403,652
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after priority allocations and income allocation to private REIT shareholders) ^4^ 42,050 42,802
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after priority allocations and income allocation to private REIT shareholders) ^3^ 205 641
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) ^5^ 25,020 21,500
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) ^3^ 5,455 1,767
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 400,348 $ 381,224

_____________

^1^ In 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 $165 and $120 for the three months ended March 31, 2020 and 2019, respectively. As of March 31, 2020, the Company has remaining lease payments aggregating approximately $26.0 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.
^2^ Consists 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 6.
--- ---
^3^ Pages 19-22 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, 2020 and therefore are no longer a part of the Company’s property portfolio.^^
--- ---
^4^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 58.
--- ---
^5^ For a quantitative reconciliation for the three months ended March 31, 2020, see page 61.
--- ---

8

Q1 2020
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office ^1^ Hotel & Residential
Three Months Ended % Three Months Ended %
31-Mar-20 31-Mar-19 Change Change 31-Mar-20 31-Mar-19 Change Change
Rental Revenue ^2^ $ 701,098 $ 678,744 $ 16,781 $ 16,653
Less: Termination income 2,399 6,956 — —
Rental revenue (excluding termination income) ^2^ 698,699 671,788 4.0 % 16,781 16,653 0.8 %
Less: Operating expenses and real estate taxes 252,219 246,071 6,148 2.5 % 10,885 11,637 (752 ) (6.5 )%
NOI (excluding termination income) ^2,^ ^3^ $ 446,480 $ 425,717 4.9 % $ 5,896 $ 5,016 17.5 %
Rental revenue (excluding termination income) ^2^ $ 698,699 $ 671,788 4.0 % $ 16,781 $ 16,653 0.8 %
Less: Straight-line rent and fair value lease revenue 33,097 28,924 4,173 14.4 % (139 ) (109 ) (30 ) (27.5 )%
Add: Lease transaction costs that qualify as rent inducements ^4^ 2,399 879 1,520 172.9 % — — — — %
Subtotal 668,001 643,743 24,258 3.8 % 16,920 16,762 158 0.9 %
Less: Operating expenses and real estate taxes 252,219 246,071 6,148 2.5 % 10,885 11,637 (752 ) (6.5 )%
Add: Straight-line ground rent expense ^5^ 811 855 (44 ) (5.1 )% — — — — %
NOI - cash (excluding termination income) ^2,^ ^3^ $ 416,593 $ 398,527 4.5 % $ 6,035 $ 5,125 17.8 %
Consolidated Total ^1^(A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
31-Mar-20 31-Mar-19 Change Change 31-Mar-20 31-Mar-19 Change Change
Rental Revenue ^2^ $ 717,879 $ 695,397 $ 34,891 $ 35,740
Less: Termination income 2,399 6,956 — 25
Rental revenue (excluding termination income) ^2^ 715,480 688,441 3.9 % 34,891 35,715 ) (2.3 )%
Less: Operating expenses and real estate taxes 263,104 257,708 5,396 2.1 % 12,347 12,177 170 1.4 %
NOI (excluding termination income) ^2,^ ^3^ $ 452,376 $ 430,733 5.0 % $ 22,544 $ 23,538 ) (4.2 )%
Rental revenue (excluding termination income) ^2^ $ 715,480 $ 688,441 3.9 % $ 34,891 $ 35,715 ) (2.3 )%
Less: Straight-line rent and fair value lease revenue 32,958 28,815 4,143 14.4 % 3,560 3,978 (418 ) (10.5 )%
Add: Lease transaction costs that qualify as rent inducements ^4^ 2,399 879 1,520 172.9 % 581 173 408 235.8 %
Subtotal $ 684,921 $ 660,505 24,416 3.7 % 31,912 31,910 2 — %
Less: Operating expenses and real estate taxes 263,104 257,708 5,396 2.1 % 12,347 12,177 170 1.4 %
Add: Straight-line ground rent expense ^5^ 811 855 (44 ) (5.1 )% — — — — %
NOI - cash (excluding termination income) ^2,^ ^3^ $ 422,628 $ 403,652 4.7 % $ 19,565 $ 19,733 ) (0.9 )%
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share ^2,^ ^6^
Three Months Ended % Three Months Ended %
31-Mar-20 31-Mar-19 Change Change 31-Mar-20 31-Mar-19 Change Change
Rental Revenue ^2^ $ 77,178 $ 75,306 $ 675,592 $ 655,831
Less: Termination income 238 118 2,161 6,863
Rental revenue (excluding termination income) ^2^ 76,940 75,188 2.3 % 673,431 648,968 3.8 %
Less: Operating expenses and real estate taxes 29,653 28,801 852 3.0 % 245,798 241,084 4,714 2.0 %
NOI (excluding termination income) ^2,^ ^3^ $ 47,287 $ 46,387 1.9 % $ 427,633 $ 407,884 4.8 %
Rental revenue (excluding termination income) ^2^ $ 76,940 $ 75,188 2.3 % $ 673,431 $ 648,968 3.8 %
Less: Straight-line rent and fair value lease revenue 5,668 4,226 1,442 34.1 % 30,850 28,567 2,283 8.0 %
Add: Lease transaction costs that qualify as rent inducements ^4^ 226 — 226 100.0 % 2,754 1,052 1,702 161.8 %
Subtotal 71,498 70,962 536 0.8 % 645,335 621,453 23,882 3.8 %
Less: Operating expenses and real estate taxes 29,653 28,801 852 3.0 % 245,798 241,084 4,714 2.0 %
Add: Straight-line ground rent expense ^5^ — — — — % 811 855 (44 ) (5.1 )%
NOI - cash (excluding termination income) ^2,^ ^3^ $ 41,845 $ 42,161 ) (0.7 )% $ 400,348 $ 381,224 5.0 %

All values are in US Dollars.

___________________

^1^ Includes 100% share of consolidated joint ventures that are a Same Property.
^2^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^3^ For 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 7-8.
--- ---
^4^ Consists 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 6.
--- ---
^5^ Excludes the straight-line impact of approximately $165 and $120 for the three months ended March 31, 2020 and 2019, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 8.
--- ---
^6^ BXP’s Share equals (A) + (B) - (C).
--- ---

9

Q1 2020
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES
Three Months Ended
31-Mar-20 31-Dec-19
Maintenance capital expenditures $ 20,051 $ 25,818
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures ^1^ (1,985 ) 8,141
Hotel improvements, equipment upgrades and replacements 197 148
Subtotal 18,263 34,107
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 319 637
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,742 472
BXP’s share of repositioning capital expenditures from unconsolidated JVs 1,247 2,024
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 126 998
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs ^1^ (802 ) 3,174
BXP’s Share of Capital Expenditures ^2^ $ 22,247 $ 33,068
2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS ^3^
--- --- --- --- ---
Three Months Ended
31-Mar-20 31-Dec-19
Square feet 995,023 1,100,745
Tenant improvements and lease commissions PSF $ 71.96 $ 83.30

___________________

^1^ For the three months ended March 31, 2020, amount includes cost savings for capital expenditures related to repositioning activities at a property in New York City.
^2^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^3^ Includes 100% of unconsolidated joint ventures.
--- ---

10

Q1 2020
Acquisitions and dispositions

For the period from January 1, 2020 through March 31, 2020

(dollars in thousands)

ACQUISITIONS
Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
681, 685 and 701 Gateway (50% nominal ownership interest) ^1^ South San Francisco, CA January 28, 2020 312,828 $ 280,751 $ — $ 280,751 100.0 %
Platform 16 (55% ownership interest) ^2^ San Jose, CA February 20, 2020 N/A 74,113 — 74,113 N/A
Total Acquisitions 312,828 $ 354,864 $ — $ 354,864 100.0 %
DISPOSITIONS
--- --- --- --- --- --- --- --- --- ---
Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain ^3^
601, 611 and 651 Gateway (50% ownership interest) ^1^ South San Francisco, CA January 28, 2020 768,236 $ 350,000 $ — $ 217,744
New Dominion Technology Park Herndon, VA February 20, 2020 492,601 256,000 253,966 192,292
Total Dispositions 1,260,837 $ 606,000 $ 253,966 $ 410,036

________________

^1^ On January 28, 2020, the Company entered into a joint venture with a third party to own, operate and develop properties at its Gateway Commons complex located in South San Francisco, California. The Company contributed its 601, 611 and 651 Gateway properties and development rights with an agreed upon value aggregating approximately $350.0 million for its 50% interest in the joint venture. The partner contributed three properties (including one property under construction) and development rights with an agreed upon value aggregating approximately $280.8 million at closing and will contribute cash totaling approximately $69.2 million in the future for its 50% ownership interest in the joint venture. As a result of the partner’s deferred contribution, the Company has an initial approximately 55% interest in the joint venture. The Company recognized a gain on the retained and sold interest in the real estate contributed to the joint venture totaling approximately $217.7 million during the three months ended March 31, 2020, as the fair value of the real estate exceeded its carrying value.
^2^ On February 20, 2020, a joint venture in which the Company has a 55% interest acquired the land underlying the ground lease at its Platform 16 project located in San Jose, California for a purchase price totaling approximately $134.8 million. The joint venture had previously made a deposit totaling $15.0 million, which deposit was credited against the purchase price. Platform 16 consists of a parcel of land totaling approximately 5.6 acres that is expected to support the development of approximately 1.1 million square feet of commercial office space.
--- ---
^3^ Excludes approximately $0.1 million of gains on sales of real estate recognized during the three months ended March 31, 2020 related to gain amounts from sales of real estate occurring in the prior year.
--- ---

11

Q1 2020
Construction in progress

as of March 31, 2020

(dollars in thousands)

CONSTRUCTION IN PROGRESS ^1^
Actual/Estimated BXP’s share
Estimated Total Investment ^2^ Amount Drawn at Estimated Future Equity Requirement ^2^ Percentage placed in-service ^4^ Net Operating Income (Loss) ^5^(BXP’s share)
Initial Occupancy Stabilization Date Square Feet Investment to Date ^2^ Total Financing Percentage Leased ^3^
Construction Properties Location 3/31/20
Office and Retail
20 CityPoint Q3 2019 Q1 2021 Waltham, MA 211,000 $ 77,622 $ 97,000 $ — $ — $ 19,378 63 % 65 % 1,261
Dock 72 (50% ownership) Q4 2019 Q3 2021 Brooklyn, NY 670,000 201,569 243,150 125,000 90,578 7,159 33 % 34 % 756
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 110,493 418,400 — — 307,907 90 % — % N/A
100 Causeway Street (50% ownership) Q2 2021 Q3 2022 Boston, MA 632,000 136,514 267,300 200,000 — 61,218 — 94 % — % N/A
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q3 2022 Q3 2022 Bethesda, MD 734,000 103,848 198,900 127,500 40,768 8,320 100 % — % N/A
Reston Gateway Q4 2022 Q4 2023 Reston, VA 1,062,000 207,516 715,300 — — 507,784 72 % — % N/A
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 469,000 76,983 356,100 — — 279,117 61 % — % N/A
Total Office Properties under Construction 4,198,000 914,545 2,296,150 452,500 192,564 1,129,665 74 % 13 % $ 2,017
Residential
Hub50House (440 units) (50% ownership) Q4 2019 Q1 2022 Boston, MA 320,000 139,938 153,500 90,000 77,685 1,247 41 % 81 % (35 )
The Skylyne (402 units) ^6^ Q3 2020 Q1 2022 Oakland, CA 324,000 221,806 263,600 — — 41,794 — — % N/A
Total Residential Properties under Construction 644,000 361,744 417,100 90,000 77,685 43,041 41 % 31 % $ (35 )
Redevelopment Properties
One Five Nine East 53rd (55% ownership) Q3 2020 Q4 2020 New York, NY 220,000 131,712 150,000 — — 18,288 96 % — % N/A
200 West Street ^7^ Q1 2021 Q4 2021 Waltham, MA 126,000 5,120 47,800 — — 42,680 — % — % N/A
Total Redevelopment Properties under Construction 346,000 136,832 197,800 — — 60,968 61 % — % N/A
Total Properties Under Construction and Redevelopment 5,188,000 $ 1,413,121 $ 2,911,050 $ 542,500 $ 270,249 $ 1,233,674 73 % ^8^ 16 % $ 1,982

12

Q1 2020
Construction in progress (continued)
PROJECTS FULLY PLACED IN-SERVICE DURING 2020
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Actual/Estimated BXP’s share
Estimated Total Investment ^2^ Amount Drawn at Estimated Future Equity Requirement ^2^ Net Operating Income (Loss) ^5^(BXP’s share)
Initial Occupancy Stabilization Date Square feet Investment to Date ^2^ Total Financing Percentage Leased ^3^
Location 3/31/20
17Fifty Presidents Street Q1 2020 Q1 2020 Reston, VA 275,809 $ 128,659 $ 142,900 $ — $ — $ 14,241 100 % $ 365
Total Projects Fully Placed In-Service 275,809 $ 128,659 $ 142,900 $ — $ — $ 14,241 100 % $ 365

_____________

^1^ A 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.
^2^ Includes income (loss) and interest carry on debt and equity investment.
--- ---
^3^ Represents percentage leased as of April 24, 2020, including leases with future commencement dates.
--- ---
^4^ Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.
--- ---
^5^ Amounts represent Net Operating Income (Loss) for the three months ended March 31, 2020. See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^6^ This development is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.
--- ---
^7^ Represents a portion of the property under redevelopment for conversion to laboratory space.
--- ---
^8^ Excludes residential units.
--- ---

13

Q1 2020
Land parcels and purchase options

as of March 31, 2020

OWNED LAND PARCELS
Location Approximate Developable Square Feet ^1^
Reston, VA 3,137,000
San Jose, CA ^2^ 2,199,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% ownership) 1,078,000
San Francisco, CA (50% Ownership) 640,000
Waltham, MA 605,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
Santa Clara, CA ^2^ 414,000
Marlborough, MA 400,000
Dulles, VA 310,000
Annapolis, MD (50% ownership) 300,000
Total 13,675,000
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
--- --- ---
Location Approximate Developable Square Feet ^1^
Boston, MA 1,300,000
San Francisco, CA 820,000
Cambridge, MA 330,000
Total 2,450,000

__________________

^1^ Represents 100%.
^2^ Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 21.
--- ---

14

Q1 2020
Leasing activity

for the three months ended March 31, 2020

ALL IN-SERVICE PROPERTIES
Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 3,135,170
Add:
Properties placed (and partially placed) in-service ^1^ 280,965
Leases expiring or terminated during the period 1,085,416
Total space available for lease 4,501,551
1st generation leases 321,456
2nd generation leases with new tenants 566,136
2nd generation lease renewals 428,887
Total space leased 1,316,479
Vacant space available for lease at the end of the period 3,185,072
Net (increase)/decrease in available space (49,902
Second generation leasing information: ^2^
Leases commencing during the period (SF) 995,023
Weighted average lease term (months) 99
Weighted average free rent period (days) 108
Total transaction costs per square foot ^3^ 71.96
Increase (decrease) in gross rents ^4^ 62.08
Increase (decrease) in net rents ^5^ 93.22

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents^8^ Total square feet of leases executed in the quarter ^7^
1st generation 2nd generation total ^6^ gross ^4^ net ^5^
Boston 52,399 215,065 267,464 26.03 % 43.35 % 93,454
Los Angeles — 17,804 17,804 6.97 % 9.78 % 34,480
New York — 263,225 263,225 142.91 % 204.67 % 131,079
San Francisco 9,469 159,409 168,878 35.99 % 49.62 % 79,176
Washington, DC 259,588 339,520 599,108 8.12 % 12.91 % 363,541
Total / Weighted Average 321,456 995,023 1,316,479 62.08 % 93.22 % 701,730

_____________

^1^ Total square feet of properties placed (and partially placed) in-service in Q1 2020 consists of 5,156 at 145 Broadway and 275,809 at 17Fifty Presidents Street.
^2^ Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 995,023 square feet of second generation leases that commenced in Q1 2020, leases for 756,159 square feet were signed in prior periods.
--- ---
^3^ Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.
--- ---
^4^ Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 727,342 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).
--- ---
^5^ Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 727,342 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).
--- ---
^6^ Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.
--- ---
^7^ Represents 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 244,020.
--- ---
^8^ Increase in 2nd generation gross and net rents includes the commencement of a retail lease in the New York region that had a significant impact on gross and net rents. Excluding this lease, the increase in second generation gross and net rents for the remaining leases was 3.2% and 3.9% for New York and 16.5% and 25.0% for Total, respectively.
--- ---

15

Q1 2020
Portfolio overview

for the three months ended March 31, 2020

(dollars in thousands)

Rentable square footage of in-service properties by location and unit type ^1, 2^
Office Retail Residential Hotel Total
Boston 13,578,012 1,102,400 229,670 330,000 15,240,082
Los Angeles 2,181,318 124,932 — — 2,306,250
New York 10,471,810 393,397 — — 10,865,207
San Francisco 7,484,751 321,266 — — 7,806,017
Washington, DC 8,875,082 667,808 822,436 — 10,365,326
Total 42,590,973 2,609,803 1,052,106 330,000 46,582,882
% of Total 91.43 % 5.60 % 2.26 % 0.71 % 100.00 %
Rental revenue of in-service properties by unit type ^1^
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Office Retail Residential Hotel ^3^ Total
Consolidated $ 671,154 $ 54,320 $ 9,229 $ 6,737 $ 741,440
Less:
Partners’ share from consolidated joint ventures ^4^ 69,792 7,785 — — 77,577
Add:
BXP’s share from unconsolidated joint ventures ^5^ 42,308 2,498 600 — 45,406
BXP’s Share of Rental revenue ^1^ $ 643,670 $ 49,033 $ 9,829 $ 6,737 $ 709,269
% of Total 90.75 % 6.91 % 1.39 % 0.95 % 100.00 %
Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location ^1,^ ^6^
--- --- --- --- --- --- ---
CBD Suburban Total
Boston 26.31 % 7.23 % 33.54 %
Los Angeles 3.54 % — % 3.54 %
New York 23.91 % 2.45 % 26.36 %
San Francisco 18.45 % 3.15 % 21.60 %
Washington, DC 6.15 % 8.81 % 14.96 %
Total 78.36 % 21.64 % 100.00 %

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ Includes 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 19-22.
--- ---
^3^ Excludes approximately $88 of revenue from retail tenants that is included in Retail.
--- ---
^4^ See page 58 for additional information.
--- ---
^5^ See page 61 for additional information.
--- ---
^6^ BXP’s Share of NOI (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of NOI (excluding termination income), see page 7.
--- ---

16

Q1 2020
Residential and hotel performance

(dollars in thousands)

RESULTS OF OPERATIONS
Residential ^1^ Hotel ^2^
Three Months Ended Three Months Ended
31-Mar-20 31-Dec-19 31-Mar-20 31-Dec-19
Rental Revenue ^3^ $ 9,956 $ 10,203 $ 6,825 $ 11,793
Less: Operating expenses and real estate taxes 4,064 4,078 6,821 8,318
Net Operating Income (NOI) ^3^ 5,892 6,125 4 3,475
Add: BXP’s share of NOI from unconsolidated joint ventures (35 ) (114 ) N/A N/A
BXP’s Share of NOI ^3^ $ 5,857 $ 6,011 $ 4 $ 3,475
Rental Revenue ^3^ $ 9,956 $ 10,203 $ 6,825 $ 11,793
Less: Straight line rent and fair value lease revenue (133 ) 153 (6 ) (6 )
Subtotal 10,089 10,050 6,831 11,799
Less: Operating expenses and real estate taxes 4,064 4,078 6,821 8,318
NOI - cash basis ^3^ 6,025 5,972 10 3,481
Add: BXP’s share of NOI-cash from unconsolidated joint ventures (35 ) (114 ) N/A N/A
BXP’s Share of NOI - cash basis ^3^ $ 5,990 $ 5,858 $ 10 $ 3,481
RENTAL RATES AND OCCUPANCY - Year-over-Year
--- --- --- --- --- --- --- --- ---
Three Months Ended Percent
31-Mar-20 31-Mar-19 Change
The Avant at Reston Town Center (359 units), Reston, VA ^3, 4^
Average Monthly Rental Rate $ 2,419 $ 2,352 2.85 %
Average Rental Rate Per Occupied Square Foot $ 2.67 $ 2.57 3.89 %
Average Physical Occupancy 91.46 % 90.25 % 1.34 %
Average Economic Occupancy 90.30 % 89.30 % 1.12 %
The Lofts at Atlantic Wharf (86 units), Boston, MA ^3, 4^
Average Monthly Rental Rate $ 4,510 $ 4,433 1.74 %
Average Rental Rate Per Occupied Square Foot $ 5.04 $ 4.86 3.70 %
Average Physical Occupancy 94.96 % 94.57 % 0.41 %
Average Economic Occupancy 94.27 % 94.96 % (0.73 )%
Signature at Reston (508 units), Reston, VA ^3, 4, 5^
Average Monthly Rental Rate $ 2,342 $ 2,260 3.63 %
Average Rental Rate Per Occupied Square Foot $ 2.51 $ 2.47 1.62 %
Average Physical Occupancy 82.22 % 53.28 % 54.32 %
Average Economic Occupancy 76.90 % 46.35 % 65.91 %
Proto Kendall Square (280 units), Cambridge, MA ^3, 4^
Average Monthly Rental Rate $ 3,027 $ 2,705 11.90 %
Average Rental Rate Per Occupied Square Foot $ 5.56 $ 5.07 9.66 %
Average Physical Occupancy 95.48 % 63.45 % 50.48 %
Average Economic Occupancy 95.15 % 58.21 % 63.46 %
Hub50House (440 units) (50% ownership), Boston, MA ^3, 6^
Average Monthly Rental Rate $ 3,219 N/A N/A
Average Rental Rate Per Occupied Square Foot $ 5.39 N/A N/A
Average Physical Occupancy 27.80 % N/A N/A
Average Economic Occupancy 21.60 % N/A N/A
Boston Marriott Cambridge (437 rooms), Cambridge, MA^2, 4^
Average Occupancy 59.60 % 80.20 % (25.69 )%
Average Daily Rate $ 211.35 $ 221.39 (4.53 )%
Revenue Per Available Room $ 126.00 $ 177.63 (29.07 )%

17

Q1 2020
Residential and hotel performance (continued)

_____________

^1^ Includes retail space.
^2^ As a result of COVID-19, the Boston Marriott Cambridge was closed in March 2020.^^
--- ---
^3^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^4^ Excludes retail space.
--- ---
^5^ This property was completed and fully placed in-service on June 7, 2018 and is in its initial lease-up period with expected stabilization in the fourth quarter of 2020.
--- ---
^6^ This property was 81% placed in-service at March 31, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.
--- ---

18

Q1 2020
In-service property listing

as of March 31, 2020

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 1,766,534 98.4 % $ 69.88
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 99.5 % 64.52
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,235,538 97.4 % 64.05
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,455 100.0 % 68.78
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 100.0 % 72.98
Prudential Center (retail shops) ^3^ CBD Boston MA 1 595,021 98.1 % 91.58
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 52.86
The Hub on Causeway - Podium (50% ownership) ^4, 5^ CBD Boston MA 1 382,497 99.4 % 65.14
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 76.70
Star Market at the Prudential Center ^3^ CBD Boston MA 1 57,235 100.0 % 60.84
Subtotal 10 7,799,360 99.0 % $ 68.92
145 Broadway ^5^ East Cambridge MA 1 488,862 98.5 % $ 80.66
355 Main Street East Cambridge MA 1 259,640 99.0 % 75.63
90 Broadway East Cambridge MA 1 223,771 100.0 % 70.27
255 Main Street East Cambridge MA 1 215,394 100.0 % 81.25
300 Binney Street East Cambridge MA 1 195,191 100.0 % 58.54
150 Broadway East Cambridge MA 1 177,226 100.0 % 80.69
105 Broadway East Cambridge MA 1 152,664 100.0 % 69.57
250 Binney Street East Cambridge MA 1 67,362 100.0 % 46.44
University Place Mid-Cambridge MA 1 195,282 100.0 % 52.78
Subtotal 9 1,975,392 99.5 % $ 71.88
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,136 86.5 % $ 45.19
Reservoir Place Route 128 Mass Turnpike MA 1 526,985 89.3 % 37.46
880 & 890 Winter Street ^5^ Route 128 Mass Turnpike MA 2 392,568 84.4 % 41.65
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,987 100.0 % 36.28
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 53.07
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,607 91.6 % 40.26
230 CityPoint Route 128 Mass Turnpike MA 1 296,212 96.6 % 41.08
10 CityPoint Route 128 Mass Turnpike MA 1 241,199 98.1 % 51.37
77 CityPoint Route 128 Mass Turnpike MA 1 209,708 93.8 % 50.20
200 West Street ^5, 6^ Route 128 Mass Turnpike MA 1 134,917 100.0 % 39.68
1265 Main Street (50% ownership) ^4^ Route 128 Mass Turnpike MA 1 114,969 100.0 % 45.05
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 44.91
195 West Street Route 128 Mass Turnpike MA 1 63,500 — % —
The Point ^3^ Route 128 Mass Turnpike MA 1 16,300 84.7 % 56.39
191 Spring Street Route 128 Northwest MA 1 170,997 100.0 % 45.36
Lexington Office Park Route 128 Northwest MA 2 166,775 72.7 % 31.32
201 Spring Street Route 128 Northwest MA 1 106,300 100.0 % 44.95
33 Hayden Avenue Route 128 Northwest MA 1 80,872 100.0 % 65.47
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.59
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 44.48
181 Spring Street Route 128 Northwest MA 1 55,793 100.0 % 43.87
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 43.66
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 46.71
Subtotal 30 4,877,256 91.4 % $ 43.54
Boston Office Total: 49 14,652,008 96.5 % $ 61.28
Residential
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Boston Residential Total: 2 253,814
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260

19

Q1 2020
In-service property listing (continued)

as of March 31, 2020

Sub Market Number of Buildings Square Feet Leased % ^1^ Annualized Rental Obligations Per Leased SF ^2^
BOSTON (continued)
Boston Total: 52 15,240,082
LOS ANGELES
Office
Colorado Center (50% ownership) ^4^ West Los Angeles CA 6 1,128,600 100.0 % $ 69.81
Santa Monica Business Park (55% ownership) ^4^ West Los Angeles CA 14 1,103,246 91.8 % 58.58
Santa Monica Business Park Retail (55% ownership) ^3, 4^ West Los Angeles CA 7 74,404 92.3 % 62.85
Subtotal 27 2,306,250 95.9 % $ 64.48
Los Angeles Total: 27 2,306,250 95.9 % $ 64.48
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,944,155 96.7 % $ 160.85
399 Park Avenue Park Avenue NY 1 1,575,809 89.0 % 100.55
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,445,155 100.0 % 100.88
599 Lexington Avenue Park Avenue NY 1 1,062,708 97.7 % 96.99
Times Square Tower (55% ownership) Times Square NY 1 1,249,864 96.4 % 81.52
250 West 55th Street Times Square / West Side NY 1 966,965 98.6 % 96.23
510 Madison Avenue Fifth/Madison Avenue NY 1 355,083 96.4 % 143.71
Subtotal 7 8,599,739 96.1 % $ 112.38
510 Carnegie Center Princeton NJ 1 234,160 100.0 % $ 37.08
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 35.17
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.04
212 Carnegie Center Princeton NJ 1 151,547 67.5 % 34.84
214 Carnegie Center Princeton NJ 1 146,979 43.2 % 46.32
506 Carnegie Center Princeton NJ 1 140,312 79.5 % 36.82
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 41.37
202 Carnegie Center Princeton NJ 1 134,068 96.2 % 40.30
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 39.63
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 33.52
101 Carnegie Center Princeton NJ 1 121,620 100.0 % 38.04
502 Carnegie Center Princeton NJ 1 121,460 100.0 % 37.70
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 42.81
104 Carnegie Center Princeton NJ 1 102,930 55.0 % 37.08
103 Carnegie Center Princeton NJ 1 96,332 68.5 % 32.67
105 Carnegie Center Princeton NJ 1 69,955 56.3 % 36.27
302 Carnegie Center Princeton NJ 1 64,926 89.3 % 36.95
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 37.56
201 Carnegie Center Princeton NJ — 6,500 100.0 % 38.15
Subtotal 18 2,265,468 86.2 % $ 37.84
New York Total: 25 10,865,207 94.1 % $ 98.13
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 102.05
Embarcadero Center Four CBD San Francisco CA 1 940,890 97.5 % 80.60
Embarcadero Center One CBD San Francisco CA 1 821,755 93.6 % 76.62
Embarcadero Center Two CBD San Francisco CA 1 792,696 96.4 % 77.74
Embarcadero Center Three CBD San Francisco CA 1 783,681 98.4 % 71.90
680 Folsom Street CBD San Francisco CA 2 524,793 100.0 % 68.24
535 Mission Street CBD San Francisco CA 1 307,235 100.0 % 84.51
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 79.10
Subtotal 9 5,617,812 97.9 % $ 83.01

20

Q1 2020
In-service property listing (continued)

as of March 31, 2020

Sub Market Number of Buildings Square Feet Leased % ^1^ Annualized Rental Obligations Per Leased SF ^2^
SAN FRANCISCO (continued)
Gateway Commons (55% ownership) ^4, 5, 7^ South San Francisco CA 5 1,065,902 81.6 % $ 52.55
Mountain View Research Park Mountain View CA 15 542,289 79.3 % 65.48
2440 West El Camino Real Mountain View CA 1 141,392 87.2 % 80.45
453 Ravendale Drive Mountain View CA 1 29,620 85.8 % 48.03
3625-3635 Peterson Way ^8^ Santa Clara CA 1 218,366 100.0 % 24.17
North First Business Park ^8^ San Jose CA 5 190,636 81.1 % 25.60
Subtotal 28 2,188,205 83.2 % $ 51.74
San Francisco Total: 37 7,806,017 93.8 % $ 75.22
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) ^4^ East End Washington DC 1 654,145 57.9 % $ 68.12
901 New York Avenue (25% ownership) ^4^ East End Washington DC 1 539,817 71.6 % 67.21
601 Massachusetts Avenue East End Washington DC 1 478,818 98.9 % 84.77
Market Square North (50% ownership) ^4^ East End Washington DC 1 417,979 79.5 % 69.50
Capital Gallery Southwest Washington DC 1 631,131 94.6 % 64.82
2200 Pennsylvania Avenue CBD Washington DC 1 458,831 100.0 % 98.40
1330 Connecticut Avenue CBD Washington DC 1 253,941 90.1 % 71.70
Sumner Square CBD Washington DC 1 208,892 91.8 % 54.80
500 North Capitol Street, N.W. (30% ownership) ^4^ Capitol Hill Washington DC 1 230,860 98.5 % 79.36
Subtotal 9 3,874,414 84.5 % $ 74.28
South of Market Reston VA 3 623,271 76.4 % $ 57.58
Fountain Square Reston VA 2 505,745 71.3 % 54.44
One Freedom Square Reston VA 1 432,585 87.3 % 54.90
Two Freedom Square Reston VA 1 421,757 84.6 % 53.71
One and Two Discovery Square Reston VA 2 366,990 98.2 % 49.93
One Reston Overlook Reston VA 1 319,519 100.0 % 44.21
17Fifty Presidents Street ^5^ Reston VA 1 275,809 94.1 % 42.73
Reston Corporate Center Reston VA 2 261,046 100.0 % 44.17
Democracy Tower Reston VA 1 259,441 98.4 % 58.78
Fountain Square Retail ^3^ Reston VA 1 216,591 91.5 % 53.50
Two Reston Overlook Reston VA 1 134,615 75.3 % 42.97
Subtotal 16 3,817,369 87.1 % $ 51.58
Wisconsin Place Office Montgomery County MD 1 299,186 93.0 % $ 57.56
Kingstowne One Springfield VA 1 151,483 96.0 % 38.84
Kingstowne Two Springfield VA 1 156,089 67.6 % 37.49
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 32.77
7435 Boston Boulevard Springfield VA 1 103,557 83.4 % 24.84
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail ^3^ Springfield VA 1 88,288 94.3 % 37.32
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 16.79
7501 Boston Boulevard Springfield VA 1 75,756 100.0 % 29.64
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 17.31
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 18.29
8000 Corporate Court Springfield VA 1 52,539 100.0 % 15.80
7451 Boston Boulevard Springfield VA 1 45,615 67.4 % 27.52
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 22.67
7375 Boston Boulevard Springfield VA 1 26,865 100.0 % 28.24
Annapolis Junction Building Seven (50% ownership) ^4^ Anne Arundel County MD 1 127,229 100.0 % 35.84
Annapolis Junction Building Eight (50% ownership) ^4^ Anne Arundel County MD 1 125,685 — % —
Annapolis Junction Building Six (50% ownership) ^4^ Anne Arundel County MD 1 119,339 75.2 % 31.82
Subtotal 18 1,800,386 80.1 % $ 35.19
Washington, DC Office Total: 43 9,492,169 84.7 % $ 57.85

21

Q1 2020
In-service property listing (continued)

as of March 31, 2020

Sub Market Number of Buildings Square Feet Leased % ^1^ Annualized Rental Obligations Per Leased SF ^2^
WASHINGTON, DC (continued)
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: 45 10,365,326
Total In-Service Properties: 186 46,582,882 92.9 % ^9^ $ 72.22 ^9^

_____________

^1^ Represents signed leases for which revenue recognition has commenced in accordance with GAAP.
^2^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^3^ This is a retail property.
--- ---
^4^ This is an unconsolidated joint venture property.
--- ---
^5^ Not included in the Same Property analysis.
--- ---
^6^ During the three months ended September 30, 2019, the Company commenced the redevelopment of a portion of 200 West Street. For additional detail, see page 12.
--- ---
^7^ For additional detail, see page 11.
--- ---
^8^ Property held for redevelopment.
--- ---
^9^ Excludes Hotel and Residential properties. For additional detail, see page 17.
--- ---

22

Q1 2020
Top 20 tenants listing and portfolio tenant diversification

as of March 31, 2020

TOP 20 TENANTS
No. Tenant BXP’s Share of Annualized Rental Obligations ^1^
1 salesforce.com 3.40 %
2 Arnold & Porter Kaye Scholer 2.63 %
3 Akamai Technologies 2.08 %
4 Biogen 1.71 %
5 Shearman & Sterling 1.58 %
6 Kirkland & Ellis 1.49 %
7 Google 1.43 %
8 Ropes & Gray 1.36 %
9 WeWork 1.27 %
10 Weil Gotshal & Manges 1.23 %
11 US Government 1.11 %
12 O’Melveny & Myers 1.10 %
13 Wellington Management 1.06 %
14 Aramis (Estee Lauder) 1.04 %
15 Bank of America 0.96 %
16 Morrison & Foerster 0.94 %
17 Leidos 0.89 %
18 Millennium Management 0.89 %
19 Mass Financial Services 0.82 %
20 Starr Indemnity & Liability Co. 0.80 %
BXP’s Share of Annualized Rental Obligations 27.79 %
BXP’s Share of Square Feet ^1^ 23.71 % NOTABLE SIGNED DEALS ^2^
--- --- ---
Tenant Property Square Feet
Fannie Mae Reston Gateway 761,000
Marriott International 7750 Wisconsin Avenue 734,000
Verizon 100 Causeway Street 440,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 287,000 TENANT DIVERSIFICATION ^1^
---

chart-1a97235a11135d758eb.jpg

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ Represents leases signed with occupancy commencing in the future. The number of square feet is an estimate.
--- ---

23

Q1 2020
Occupancy by location

as of March 31, 2020

TOTAL IN-SERVICE OFFICE PROPERTIES ^1^- Quarter-over-Quarter
CBD Suburban Total
Location 31-Mar-20 31-Dec-19 31-Mar-20 31-Dec-19 31-Mar-20 31-Dec-19
Boston 99.1 % 98.4 % 91.4 % 90.8 % 96.5 % 95.9 %
Los Angeles 95.9 % 96.7 % — % — % 95.9 % 96.7 %
New York 96.1 % 94.4 % 86.2 % 87.0 % 94.1 % 92.9 %
San Francisco 97.9 % 97.2 % 83.2 % 83.3 % 93.8 % 93.7 %
Washington, DC 84.5 % 85.4 % 84.9 % 89.1 % 84.7 % 87.6 %
Total Portfolio 95.9 % 95.2 % 87.0 % 88.6 % 92.9 % 93.0 %

chart-7b498fdbbb9d5c2c8f1.jpg

SAME PROPERTY OFFICE PROPERTIES ^1, 2^- Year-over-Year
CBD Suburban Total
Location 31-Mar-20 31-Mar-19 31-Mar-20 31-Mar-19 31-Mar-20 31-Mar-19
Boston 99.1 % 98.5 % 92.0 % 95.6 % 96.7 % 97.5 %
Los Angeles 95.9 % 96.0 % — % — % 95.9 % 96.0 %
New York 96.1 % 94.9 % 86.2 % 84.3 % 94.1 % 92.7 %
San Francisco 97.9 % 91.8 % 84.8 % 93.6 % 95.7 % 92.1 %
Washington, DC 84.5 % 92.8 % 84.4 % 89.9 % 84.5 % 91.1 %
Total Portfolio 95.8 % 95.2 % 87.3 % 91.2 % 93.2 % 94.0 %

chart-824c7a54d8f75979a9a.jpg

_____________

^1^ Represents 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.
^2^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---

24

Q1 2020
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT
Aggregate Principal
Mortgage Notes Payable $ 2,944,942
Unsecured Line of Credit 250,000
Unsecured Term Loan 500,000
Unsecured Senior Notes, at face value 8,450,000
Outstanding Principal 12,144,942
Discount on Unsecured Senior Notes (16,663 )
Deferred Financing Costs, Net (67,055 )
Consolidated Debt $ 12,061,224 MORTGAGE NOTES PAYABLE
--- --- --- --- --- ---
Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
University Place August 1, 2021 6.99% 6.94% $ 3,106
601 Lexington Avenue (55% ownership) April 10, 2022 4.79% 4.75% 641,836
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 2,944,942 BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES ^1^
--- --- --- --- --- ---
Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10 Year Unsecured Senior Notes May 15, 2021 4.29% 4.13% $ 850,000
11 Year Unsecured Senior Notes February 1, 2023 3.95% 3.85% 1,000,000
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
$ 8,450,000 CAPITALIZATION
--- --- --- --- --- ---
Shares/Units Common Stock Equivalent
Outstanding Equivalents Value ^2^
Common Stock 155,315 155,315 $ 14,324,702
Common Operating Partnership Units 17,765 17,765 1,638,466
5.25% Series B Cumulative Redeemable Preferred Stock (callable on or after March 27, 2018) 80 — 200,000
Total Equity 173,080 $ 16,163,168
Consolidated Debt (A) $ 12,061,224
Add: BXP’s share of unconsolidated joint venture debt ^3^ 1,027,547
Less: Partners’ share of consolidated debt ^4^ 1,198,575
BXP’s Share of Debt ^5^ (B) $ 11,890,196
Consolidated Market Capitalization (C) $ 28,224,392
BXP’s Share of Market Capitalization ^5^(D) $ 28,053,364
Consolidated Debt/Consolidated Market Capitalization (A÷C) 42.73 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization ^5^(B÷D) 42.38 %

_____________

^1^ All unsecured senior notes are rated A- (negative), and Baa1 (stable) by S&P and Moody’s, respectively.
^2^ Values based on March 31, 2020 closing price of $92.23 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.
--- ---
^3^ Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 32.
--- ---
^4^ Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 30.
--- ---
^5^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---

25

Q1 2020
Debt analysis ^1^

as of March 31, 2020

(dollars in thousands)

chart-d03c3b3b648b50539c6.jpg

UNSECURED CREDIT FACILITY - MATURES APRIL 24, 2022
Facility Outstanding at March 31, 2020 Letters of Credit Remaining Capacity at March 31, 2020
Unsecured Line of Credit $ 1,500,000 $ 250,000 $ 2,457 $ 1,247,543
Unsecured Term Loan $ 500,000 $ 500,000 N/A $ —
UNSECURED AND SECURED DEBT ANALYSIS
--- --- --- --- --- --- --- ---
Weighted Average
% of Total Debt Stated Rates GAAP Rates ^2^ Maturity (years)
Unsecured Debt 75.80 % 3.55 % 3.63 % 5.4
Secured Debt 24.20 % 3.72 % 3.90 % 6.1
Consolidated Debt 100.00 % 3.59 % 3.70 % 5.6
FLOATING AND FIXED RATE DEBT ANALYSIS
--- --- --- --- --- --- --- ---
Weighted Average
% of Total Debt Stated Rates GAAP Rates ^2^ Maturity (years)
Floating Rate Debt 6.21 % 2.07 % 2.16 % 2.1
Fixed Rate Debt 93.79 % 3.69 % 3.80 % 5.8
Consolidated Debt 100.00 % 3.59 % 3.70 % 5.6

_____________

^1^ Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 32.
^2^ The 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.
--- ---

26

Q1 2020
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, 2020 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% 43.2 % 39.4 %
Secured Debt/Total Assets Less than 50% 13.6 % 12.4 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.48 4.48
Unencumbered Assets/ Unsecured Debt Greater than 150% 253.4 % 287.4 %

_____________

^1^ Capitalized 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.

27

Q1 2020
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-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 140,824
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539 16,222
Noncontrolling interest in property partnerships 19,486 16,338
Net income 577,146 176,009
Add:
Interest expense 101,591 102,880
Losses from early extinguishments of debt — 1,530
Depreciation and amortization expense 171,094 169,897
Less:
Gains (losses) on sales of real estate 410,165 (57 )
Income (loss) from unconsolidated joint ventures (369 ) (936 )
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures ^2^ 28,886 24,328
EBITDAre ^1^ 468,921 475,637
Less:
Partners’ share of EBITDAre from consolidated joint ventures ^3^ 47,889 45,356
BXP’s Share of EBITDAre ^1^ (A) 421,032 430,281
Add:
Stock-based compensation expense 17,525 7,705
BXP’s Share of straight-line ground rent expense adjustment ^1^ 1,017 1,056
BXP’s Share of lease transaction costs that qualify as rent inducements ^1^ 4,023 9,403
Less:
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) ^1^ — —
BXP’s Share of straight-line rent ^1^ 31,262 43,501
BXP’s Share of fair value lease revenue ^1^ 3,189 3,298
BXP’s Share of EBITDAre – cash ^1^ $ 409,146 $ 401,646
BXP’s Share of EBITDAre (Annualized) ^4^ (A x 4) $ 1,684,128 $ 1,721,124
Reconciliation of BXP’s Share of Net Debt^1^
--- --- --- --- ---
31-Mar-20 31-Dec-19
Consolidated debt $ 12,061,224 $ 11,811,806
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 660,733 644,950
Cash held in escrow for 1031 exchange 151,277 —
Net debt ^1^ 11,249,214 11,166,856
Add:
BXP’s share of unconsolidated joint venture debt ^2^ 1,027,547 980,110
Partners’ share of cash and cash equivalents from consolidated joint ventures 115,520 120,791
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 93,811 90,206
Partners’ share of consolidated joint venture debt ^3^ 1,198,575 1,199,854
BXP’s Share of Net Debt ^1^ (B) $ 11,099,895 $ 10,977,697
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 6.59 6.38

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended March 31, 2020, see pages 32 and 60.
--- ---
^3^ For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended March 31, 2020, see pages 30 and 58.
--- ---
^4^ BXP’s Share of EBITDAre is annualized and calculated as the product of such amount for the quarter multiplied by four (4).
--- ---

28

Q1 2020
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO ^1^

Three Months Ended
31-Mar-20 31-Dec-19
BXP’s Share of interest expense ^1^ $ 101,738 $ 102,752
Less:
BXP’s Share of hedge amortization ^1^ 1,435 1,435
BXP’s Share of amortization of financing costs ^1^ 3,349 3,341
Adjusted interest expense excluding capitalized interest (A) 96,954 97,976
Add:
BXP’s Share of capitalized interest ^1^ 15,204 15,014
Adjusted interest expense including capitalized interest (B) $ 112,158 $ 112,990
BXP’s Share of EBITDAre – cash ^1, 2^(C) $ 409,146 $ 401,646
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 4.22 4.10
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.65 3.55

FIXED CHARGE COVERAGE RATIO ^1^

Three Months Ended
31-Mar-20 31-Dec-19
BXP’s Share of interest expense ^1^ $ 101,738 $ 102,752
Less:
BXP’s Share of hedge amortization ^1^ 1,435 1,435
BXP’s Share of amortization of financing costs ^1^ 3,349 3,341
Add:
BXP’s Share of capitalized interest ^1^ 15,204 15,014
BXP’s Share of maintenance capital expenditures ^1^ 20,244 25,457
Hotel improvements, equipment upgrades and replacements 197 148
Preferred dividends/distributions 2,625 2,625
Total Fixed Charges (A) $ 135,224 $ 141,220
BXP’s Share of EBITDAre – cash ^1, 2^ (B) $ 409,146 $ 401,646
Fixed Charge Coverage Ratio (B÷A) 3.03 2.84

_____________

^1^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
^2^ For a qualitative reconciliation of BXP’s Share of EBITDAre – cash, see page 28.
--- ---

29

Q1 2020
Consolidated joint ventures

as of March 31, 2020

(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 $ 3,217,461 $ 2,306,892 $ 5,524,353
Cash and cash equivalents 105,345 163,070 268,415
Other assets 288,090 373,696 661,786
Total assets $ 3,610,896 $ 2,843,658 $ 6,454,554
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,274,860 $ 641,167 $ 2,916,027
Other liabilities 114,212 85,354 199,566
Total liabilities 2,389,072 726,521 3,115,593
Equity:
Boston Properties, Inc. 734,647 867,759 1,602,406
Noncontrolling interests 487,177 1,249,378 1,736,555 ^2^
Total equity 1,221,824 2,117,137 3,338,961
Total liabilities and equity $ 3,610,896 $ 2,843,658 $ 6,454,554
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents ^3^ $ 42,138 $ 73,382 $ 115,520
Partners’ share of consolidated debt ^3, 4^ $ 910,050 $ 288,525 $ 1,198,575

_____________

^1^ Certain balances contain amounts that eliminate in consolidation.
^2^ Amount excludes preferred shareholders’ capital of approximately $0.1 million.
--- ---
^3^ Amounts represent the partners’ share based on their respective ownership percentages.
--- ---
^4^ Amounts adjusted for basis differentials.
--- ---

30

Q1 2020
Consolidated joint ventures (continued)

for the three months ended March 31, 2020

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease ^1^ $ 69,133 $ 96,613 $ 165,746
Straight-line rent 6,927 4,888 11,815
Fair value lease revenue 1,448 109 1,557
Termination income 474 106 580
Total lease revenue 77,982 101,716 179,698
Parking and other 2 1,357 1,359
Total rental revenue ^2^ 77,984 103,073 181,057
Expenses
Operating 30,700 35,716 66,416
Net Operating Income (NOI) 47,284 67,357 114,641
Other income (expense)
Interest and other income 341 385 726
Interest expense (21,175 ) (5,130 ) (26,305 )
Depreciation and amortization expense (19,799 ) (20,613 ) (40,412 )
General and administrative expense (21 ) (81 ) (102 )
Total other income (expense) (40,654 ) (25,439 ) (66,093 )
Net income $ 6,630 $ 41,918 $ 48,548

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 $ 6,630 $ 41,918 $ 48,548
Add: Depreciation and amortization expense 19,799 20,613 40,412
Entity FFO $ 26,429 $ 62,531 $ 88,960
Partners’ NCI ^3^ $ 1,660 $ 17,826 $ 19,486
Partners’ share of depreciation and amortization expense after BXP’s basis differential ^3^ 8,236 9,391 17,627
Partners’ share FFO ^3^ $ 9,896 $ 27,217 $ 37,113
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 4,970 $ 24,092 $ 29,062
Depreciation and amortization expense - BXP’s basis difference 72 408 480
BXP’s share of depreciation and amortization expense 11,491 10,814 22,305
BXP’s share of FFO $ 16,533 $ 35,314 $ 51,847

_____________

^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 percentage and is adjusted for basis differentials and the allocations of management and other fees and depreciation and amortization related to capitalized fees.^^
--- ---

31

Q1 2020
Unconsolidated joint ventures ^1^

as of March 31, 2020

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP ^2^
540 Madison Avenue ^3^ 60.00 % $ 2,961 $ — — — % — %
Santa Monica Business Park 55.00 % 151,997 163,468 July 19, 2025 4.06 % 4.24 %
Platform 16 55.00 % 93,991 — — — % — %
Gateway Commons 50.00 % 348,143 — — — % — %
Colorado Center 50.00 % 251,146 274,622 August 9, 2027 3.56 % 3.58 %
Dock 72 50.00 % 95,362 89,290 December 18, 2020 3.65 % 4.79 %
The Hub on Causeway 50.00 % — — — — % — %
Podium 50.00 % 49,605 85,974 September 6, 2021 3.59 % 4.08 %
Hub50House 50.00 % 54,414 77,154 April 19, 2022 3.35 % 3.63 %
100 Causeway Street 50.00 % 57,079 59,770 September 5, 2023 3.15 % 3.36 %
Hotel Air Rights 50.00 % 9,889 — — — % — %
1001 6th Street 50.00 % 42,774 — — — % — %
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 57,003 38,621 April 26, 2023 2.69 % 3.24 %
Annapolis Junction 50.00 % 25,461 — — — % — %
Annapolis Junction Building Six 50.00 % — 6,193 November 17, 2020 3.41 % 3.56 %
Annapolis Junction Building Seven and Eight 50.00 % — 17,302 June 30, 2020 4.02 % 4.17 %
1265 Main Street 50.00 % 3,636 18,815 January 1, 2032 3.77 % 3.84 %
Market Square North 50.00 % (4,469 ) 57,743 October 1, 2020 4.85 % 4.91 %
Wisconsin Place Parking Facility 33.33 % 36,446 — — — % — %
500 North Capitol Street, N.W. 30.00 % (5,688 ) 31,444 June 6, 2023 4.15 % 4.20 %
3 Hudson Boulevard ^4^ 25.00 % 84,301 19,948 July 13, 2023 4.97 % 5.05 %
901 New York Avenue 25.00 % (12,069 ) 55,864 January 5, 2025 3.61 % 3.69 %
Metropolitan Square^5^ 20.00 % 13,130 31,339 May 5, 2020 5.75 % 5.81 %
1,355,112
Investments with deficit balances reflected within Other Liabilities 22,226
Investment in Joint Ventures $ 1,377,338
Mortgage/Construction Loans Payable, Net $ 1,027,547

chart-9e6edf7203915e00b3e.jpg

FLOATING AND FIXED RATE DEBT ANALYSIS
Weighted Average
% of Total Debt Stated Rate GAAP Rate ^2^ Maturity (years)
Floating Rate Debt 38.37 % 3.49 % 4.00 % 1.9
Fixed Rate Debt 61.63 % 3.96 % 4.03 % 5.5
Total Debt 100.00 % 3.78 % 4.02 % 4.1

32

Q1 2020
Unconsolidated joint ventures (continued) ^1^

_____________

^1^ Amounts represent BXP’s share based on its ownership percentage.
^2^ The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees.
--- ---
^3^ The property was sold on June 27, 2019.
--- ---
^4^ The Company has provided $80.0 million of mortgage financing to the joint venture. The loan has been reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.
--- ---
^5^ On April 22, 2020, the joint venture extended the loan maturity to August 5, 2020.
--- ---

33

Q1 2020
Unconsolidated joint ventures (continued)

for the three months ended March 31, 2020

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS
Market Square North Metropolitan<br> Square 901 New York Avenue Annapolis Junction ^1^ 500 North Capitol Street, N.W. Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons ^2^ Other Joint Ventures ^3^ Total Unconsolidated Joint Ventures
Revenue
Lease ^4^ $ 5,281 $ 4,360 $ 6,187 $ 1,938 $ 4,334 $ 19,113 $ 15,409 $ 7,550 $ 8,467 $ 2,058 $ 74,697
Straight-line rent 397 2,086 270 52 (19 ) 984 1,254 1,359 406 2,874 9,663
Fair value lease revenue 9 908 40 — 957
Termination income — — — — — — — — — — —
Total lease revenue 5,678 6,446 6,457 1,990 4,315 20,106 17,571 8,909 8,913 4,932 85,317
Parking and other 209 480 330 — 123 2,767 2,177 95 1 1,137 7,319
Total rental revenue ^5^ 5,887 6,926 6,787 1,990 4,438 22,873 19,748 9,004 8,914 6,069 92,636
Expenses
Operating 2,484 3,325 3,112 756 1,806 6,251 7,497 3,797 3,066 3,043 35,137
Net operating income 3,403 3,601 3,675 1,234 2,632 16,622 12,251 5,207 5,848 3,026 57,499
Other income/(expense)
Development and management services revenue — — — (1 ) — — — — 6 — 5
Interest and other income 56 — 98 51 18 172 1 49 — 117 562
Interest expense (1,424 ) (1,653 ) (2,072 ) (473 ) (1,116 ) (4,979 ) (6,972 ) (2,655 ) — (1,239 ) (22,583 )
Depreciation and amortization expense (1,139 ) (1,776 ) (1,410 ) (663 ) (872 ) (5,188 ) (8,969 ) (3,537 ) (5,737 ) (2,744 ) (32,035 )
General and administrative expense — (14 ) — — — (26 ) (152 ) (56 ) (14 ) (2 ) (264 )
Total other income/(expense) (2,507 ) (3,443 ) (3,384 ) (1,086 ) (1,970 ) (10,021 ) (16,092 ) (6,199 ) (5,745 ) (3,868 ) (54,315 )
Net income/(loss) $ 896 $ 158 $ 291 $ 148 $ 662 $ 6,601 $ (3,841 ) $ (992 ) $ 103 $ (842 ) $ 3,184
BXP’s economic ownership percentage 50 % 20 % 25 % 50 % 30 % 50 % 55 % 50 % 55 %
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ 448 $ 32 $ 73 ^6^ $ 74 $ 199 $ 3,301 $ (2,113 ) $ (496 ) $ 57 $ (323 ) $ 1,252
Basis differential
Straight-line rent $ — $ — $ — $ — $ — $ 444 ^7^ $ — $ — $ 65 $ — $ 509
Fair value lease revenue — — — — — 437 ^7^ — — (137 ) — 300
Depreciation and amortization expense (46 ) 3 (26 ) (4 ) 2 (1,894 ) 5 (19 ) (436 ) (15 ) (2,430 )
Total basis differential ^8^ (46 ) 3 (26 ) (4 ) 2 (1,013 ) ^7^ 5 (19 ) (508 ) (15 ) (1,621 )
Income/(loss) from unconsolidated joint ventures 402 35 47 ^6^ 70 201 2,288 (2,108 ) (515 ) (451 ) (338 ) (369 )
Add:
BXP’s share of depreciation and amortization expense 615 352 803 ^6^ 335 259 4,488 4,928 1,788 3,606 1,158 18,332
BXP’s share of FFO $ 1,017 $ 387 $ 850 $ 405 $ 460 $ 6,776 $ 2,820 $ 1,273 $ 3,155 $ 820 $ 17,963

34

Q1 2020
Unconsolidated joint ventures (continued)

_____________

^1^ Annapolis Junction includes three in-service properties and two undeveloped land parcels.^^
^2^ For additional detail see, page 11.
--- ---
^3^ Includes 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility, 3 Hudson Boulevard, 540 Madison Avenue and Platform 16.
--- ---
^4^ Lease revenue includes recoveries from tenants and service income from tenants.^^
--- ---
^5^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^6^ Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.^^
--- ---
^7^ 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 venture.^^
--- ---
^8^ Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.
--- ---

35

Q1 2020
Lease expirations^^- All in-service properties^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease Percentage of
Expiration /PSF /PSF Total Square Feet
2020 2,259,552 1,912,073 5.19 % ^4^
2021 3,094,722 2,772,576 7.52 %
2022 2,698,688 2,304,783 6.25 %
2023 2,022,466 1,775,531 4.82 %
2024 3,589,893 3,246,827 8.81 %
2025 2,624,204 2,362,568 6.41 %
2026 3,324,528 2,552,719 6.93 %
2027 2,040,197 1,798,355 4.88 %
2028 2,391,850 2,210,021 6.00 %
2029 2,380,164 2,232,847 6.06 %
Thereafter 13,211,017 11,082,096 30.07 %

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 Percentage of
Expiration /PSF /PSF Total Square Feet
2020 136,254 129,591 6.12 % ^4^
2021 118,383 109,840 5.19 %
2022 213,172 186,695 8.82 %
2023 227,632 220,449 10.42 %
2024 122,167 113,041 5.34 %
2025 169,237 165,659 7.83 %
2026 128,299 107,114 5.06 %
2027 108,135 102,868 4.86 %
2028 259,987 244,178 11.54 %
2029 148,698 109,506 5.17 %
Thereafter 764,465 601,750 28.43 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease Percentage of
Expiration /PSF /PSF Total Square Feet
2020 2,395,806 2,041,664 5.24 % ^4^
2021 3,213,105 2,882,416 7.40 %
2022 2,911,860 2,491,478 6.39 %
2023 2,250,098 1,995,980 5.12 %
2024 3,712,060 3,359,868 8.62 %
2025 2,793,441 2,528,227 6.49 %
2026 3,452,827 2,659,833 6.82 %
2027 2,148,332 1,901,223 4.88 %
2028 2,651,837 2,454,199 6.30 %
2029 2,528,862 2,342,353 6.01 %
Thereafter 13,975,482 11,683,846 29.98 %

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units and hotel.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter. ^^
--- ---

36

Q1 2020
Lease expirations - Boston region in-service properties ^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 305,199 297,708
2021 822,319 764,070
2022 901,919 836,940
2023 691,857 632,456
2024 915,904 886,701
2025 1,070,186 1,053,671
2026 1,269,257 1,030,198
2027 645,041 645,041
2028 1,079,209 1,079,209
2029 681,361 604,026
Thereafter 4,722,798 4,237,885

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
2020 62,399 62,399
2021 28,293 21,977
2022 58,415 58,100
2023 76,955 76,955
2024 70,982 70,982
2025 48,974 48,974
2026 20,123 19,258
2027 63,536 63,536
2028 168,757 167,407
2029 110,741 76,346
Thereafter 336,964 264,915

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
2020 367,598 360,107
2021 850,612 786,047
2022 960,334 895,040
2023 768,812 709,411
2024 986,886 957,683
2025 1,119,160 1,102,645
2026 1,289,380 1,049,456
2027 708,577 708,577
2028 1,247,966 1,246,616
2029 792,102 680,372
Thereafter 5,059,762 4,502,800

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units and hotel.
--- ---
^3^ Does 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.
--- ---

37

Q1 2020
Quarterly lease expirations - Boston region in-service properties ^1, 2, 3^

as of March 31, 2020

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 2020 — —
Q2 2020 46,428 46,428
Q3 2020 41,174 41,174
Q4 2020 217,597 210,106
Total 2020 305,199 297,708
Q1 2021 224,576 220,246
Q2 2021 247,821 247,821
Q3 2021 107,227 107,227
Q4 2021 242,695 188,776
Total 2021 822,319 764,070

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 2020 — —
Q2 2020 44,942 44,942
Q3 2020 15,980 15,980
Q4 2020 1,477 1,477
Total 2020 62,399 62,399
Q1 2021 4,264 4,264
Q2 2021 1,725 1,725
Q3 2021 15,547 9,233
Q4 2021 6,757 6,755
Total 2021 28,293 21,977

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 2020 — —
Q2 2020 91,370 91,370
Q3 2020 57,154 57,154
Q4 2020 219,074 211,583
Total 2020 367,598 360,107
Q1 2021 228,840 224,510
Q2 2021 249,546 249,546
Q3 2021 122,774 116,460
Q4 2021 249,452 195,531
Total 2021 850,612 786,047

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units and hotel.
--- ---
^3^ Does 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.
--- ---

38

Q1 2020
Lease expirations - Los Angeles region in-service properties ^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 355,170 188,719
2021 329,467 166,471
2022 43,921 22,274
2023 163,555 86,354
2024 128,688 70,778
2025 6,450 3,548
2026 430,949 237,022
2027 13,937 7,665
2028 262,161 134,409
2029 — —
Thereafter 346,204 173,102

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
2020 11,663 6,415
2021 — —
2022 39,888 21,850
2023 1,405 703
2024 4,333 2,283
2025 6,081 3,345
2026 5,827 3,205
2027 — —
2028 — —
2029 — —
Thereafter 23,276 11,902

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
2020 366,833 195,134
2021 329,467 166,471
2022 83,809 44,124
2023 164,960 87,057
2024 133,021 73,061
2025 12,531 6,893
2026 436,776 240,227
2027 13,937 7,665
2028 262,161 134,409
2029 — —
Thereafter 369,480 185,004

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.
--- ---
^3^ Does 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.
--- ---

39

Q1 2020
Quarterly lease expirations - Los Angeles region in-service properties ^1, 2, 3^

as of March 31, 2020

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 2020 — —
Q2 2020 3,496 1,923
Q3 2020 16,483 9,066
Q4 2020 335,191 177,731
Total 2020 355,170 188,719
Q1 2021 52,279 27,109
Q2 2021 4,964 2,730
Q3 2021 5,581 3,070
Q4 2021 266,643 133,563
Total 2021 329,467 166,471

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 2020 — —
Q2 2020 9,367 5,152
Q3 2020 2,296 1,263
Q4 2020 — —
Total 2020 11,663 6,415
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —

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 2020 — —
Q2 2020 12,863 7,075
Q3 2020 18,779 10,329
Q4 2020 335,191 177,731
Total 2020 366,833 195,134
Q1 2021 52,279 27,109
Q2 2021 4,964 2,730
Q3 2021 5,581 3,070
Q4 2021 266,643 133,563
Total 2021 329,467 166,471

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. The Company owns 50% of Colorado Center and 55% of Santa Monica Business Park.
--- ---
^3^ Does 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.
--- ---

40

Q1 2020
Lease expirations - New York region in-service properties ^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 511,786 427,012 ^4^
2021 331,418 268,925
2022 806,712 646,862
2023 241,134 194,655
2024 1,149,064 972,435
2025 578,197 503,787
2026 696,709 499,779
2027 465,919 382,366
2028 260,250 238,204
2029 630,080 603,713
Thereafter 4,325,673 3,304,766

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
2020 1,600 1,600 ^4^
2021 10,925 10,925
2022 37,612 32,807
2023 8,399 5,039
2024 3,075 3,075
2025 1,872 1,030
2026 40,723 24,232
2027 243 146
2028 — —
2029 3,135 3,135
Thereafter 269,783 197,897

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
2020 513,386 428,612 ^4^
2021 342,343 279,850
2022 844,324 679,669
2023 249,533 199,694
2024 1,152,139 975,510
2025 580,069 504,817
2026 737,432 524,011
2027 466,162 382,512
2028 260,250 238,204
2029 633,215 606,848
Thereafter 4,595,456 3,502,663

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

41

Q1 2020
Quarterly lease expirations - New York region in-service properties ^1, 2, 3^

as of March 31, 2020

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 2020 145,835 87,241 ^4^
Q2 2020 14,116 11,675
Q3 2020 276,858 276,858
Q4 2020 74,977 51,238
Total 2020 511,786 427,012
Q1 2021 85,849 67,018
Q2 2021 28,797 25,375
Q3 2021 161,703 121,462
Q4 2021 55,069 55,069
Total 2021 331,418 268,925

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 2020 1,600 1,600 ^4^
Q2 2020 — —
Q3 2020 — —
Q4 2020 — —
Total 2020 1,600 1,600
Q1 2021 715 715
Q2 2021 — —
Q3 2021 10,210 10,210
Q4 2021 — —
Total 2021 10,925 10,925

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 2020 147,435 88,841 ^4^
Q2 2020 14,116 11,675
Q3 2020 276,858 276,858
Q4 2020 74,977 51,238
Total 2020 513,386 428,612
Q1 2021 86,564 67,733
Q2 2021 28,797 25,375
Q3 2021 171,913 131,672
Q4 2021 55,069 55,069
Total 2021 342,343 279,850

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

42

Q1 2020
Lease expirations - San Francisco region in-service properties ^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 339,551 281,831 ^4^
2021 880,173 849,903
2022 693,687 570,441
2023 591,799 538,250
2024 662,866 629,116
2025 446,458 440,291
2026 503,249 420,216
2027 367,033 367,033
2028 480,059 467,803
2029 259,888 241,604
Thereafter 1,770,942 1,754,576

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
2020 16,351 16,351 ^4^
2021 24,366 24,366
2022 38,819 38,819
2023 51,072 51,072
2024 10,225 10,225
2025 31,493 31,493
2026 25,598 25,598
2027 5,056 5,056
2028 15,811 15,811
2029 8,341 8,341
Thereafter 62,200 60,802

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
2020 355,902 298,182 65.52 ^4^
2021 904,539 874,269
2022 732,506 609,260
2023 642,871 589,322
2024 673,091 639,341
2025 477,951 471,784
2026 528,847 445,814
2027 372,089 372,089
2028 495,870 483,614
2029 268,229 249,945
Thereafter 1,833,142 1,815,378

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

43

Q1 2020
Lease expirations - San Francisco region in-service properties ^1, 2, 3^

as of March 31, 2020

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 2020 16,120 16,120 ^4^
Q2 2020 78,366 72,380
Q3 2020 171,568 124,808
Q4 2020 73,497 68,524
Total 2020 339,551 281,831
Q1 2021 395,402 389,546
Q2 2021 166,032 158,177
Q3 2021 140,232 131,934
Q4 2021 178,507 170,248
Total 2021 880,173 849,903

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 2020 2,482 2,482 ^4^
Q2 2020 3,944 3,944
Q3 2020 8,137 8,137
Q4 2020 1,788 1,788
Total 2020 16,351 16,351
Q1 2021 1,964 1,964
Q2 2021 14,833 14,833
Q3 2021 3,751 3,751
Q4 2021 3,818 3,818
Total 2021 24,366 24,366

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 2020 18,602 18,602 ^4^
Q2 2020 82,310 76,324
Q3 2020 179,705 132,945
Q4 2020 75,285 70,312
Total 2020 355,902 298,182
Q1 2021 397,366 391,510
Q2 2021 180,865 173,010
Q3 2021 143,983 135,685
Q4 2021 182,325 174,066
Total 2021 904,539 874,269

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

44

Q1 2020
Lease expirations - Washington, DC region in-service properties ^1, 2, 3^

as of March 31, 2020

OFFICE
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 747,846 716,803 ^4^
2021 731,345 723,207
2022 252,449 228,266
2023 334,121 323,816
2024 733,371 687,797
2025 522,913 361,271
2026 424,364 365,504
2027 548,267 396,250
2028 310,171 290,396
2029 808,835 783,504
Thereafter 2,045,400 1,611,767

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
2020 44,241 42,826
2021 54,799 52,572
2022 38,438 35,119
2023 89,801 86,680
2024 33,552 26,476
2025 80,817 80,817
2026 36,028 34,821
2027 39,300 34,130
2028 75,419 60,960
2029 26,481 21,684
Thereafter 72,242 66,234

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
2020 792,087 759,629 ^4^
2021 786,144 775,779
2022 290,887 263,385
2023 423,922 410,496
2024 766,923 714,273
2025 603,730 442,088
2026 460,392 400,325
2027 587,567 430,380
2028 385,590 351,356
2029 835,316 805,188
Thereafter 2,117,642 1,678,001

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

45

Q1 2020
Quarterly lease expirations - Washington, DC region in-service properties ^1, 2, 3^

^^

as of March 31, 2020

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 2020 40,594 40,594 ^4^
Q2 2020 314,759 312,972
Q3 2020 56,615 49,246
Q4 2020 335,878 313,992
Total 2020 747,846 716,803
Q1 2021 116,205 116,205
Q2 2021 408,569 403,680
Q3 2021 139,329 136,081
Q4 2021 67,242 67,242
Total 2021 731,345 723,207

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 2020 — —
Q2 2020 2,734 2,734
Q3 2020 15,366 13,951
Q4 2020 26,141 26,141
Total 2020 44,241 42,826
Q1 2021 23,743 23,743
Q2 2021 17,002 17,002
Q3 2021 4,491 4,491
Q4 2021 9,563 7,336
Total 2021 54,799 52,572

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 2020 40,594 40,594 ^4^
Q2 2020 317,493 315,706
Q3 2020 71,981 63,197
Q4 2020 362,019 340,133
Total 2020 792,087 759,629
Q1 2021 139,948 139,948
Q2 2021 425,571 420,682
Q3 2021 143,820 140,572
Q4 2021 76,805 74,578
Total 2021 786,144 775,779

All values are in US Dollars. _____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

46

Q1 2020
Lease expirations - CBD properties ^1, 2, 3^

^^

as of March 31, 2020

Boston
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 221,853 214,362
2021 326,412 261,847
2022 324,400 259,106
2023 494,838 435,437
2024 454,266 425,063
2025 340,497 323,982
2026 1,072,733 832,809
2027 378,086 378,086
2028 1,044,148 1,042,798
2029 501,530 389,800
Thereafter 4,415,123 3,915,645

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
2020 366,833 195,134
2021 329,467 166,471
2022 83,809 44,124
2023 164,960 87,057
2024 133,021 73,062
2025 12,531 6,892
2026 436,776 240,227
2027 13,937 7,665
2028 262,161 134,409
2029 — —
Thereafter 369,480 185,004

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
2020 243,669 158,895 ^4^
2021 273,913 211,420
2022 732,865 568,210
2023 196,242 146,404
2024 666,351 489,722
2025 375,300 300,048
2026 522,508 309,087
2027 248,521 164,871
2028 216,656 194,610
2029 586,449 560,082
Thereafter 4,374,849 3,282,056

All values are in US Dollars.

47

Q1 2020
Lease expirations - CBD properties (continued) ^1, 2, 3^

^^

as of March 31, 2020

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
2020 208,752 208,752 ^4^
2021 380,293 380,293
2022 429,856 429,856
2023 394,094 394,094
2024 553,063 553,063
2025 295,313 295,313
2026 362,781 362,781
2027 339,829 339,829
2028 471,358 471,358
2029 231,661 231,661
Thereafter 1,797,612 1,797,612

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
2020 128,270 95,812 ^4^
2021 368,650 358,285
2022 116,556 89,054
2023 51,216 37,790
2024 213,162 189,682
2025 154,572 56,545
2026 337,051 276,984
2027 219,914 78,430
2028 159,015 124,780
2029 58,232 28,104
Thereafter 1,435,766 996,125

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units and hotel.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

48

Q1 2020
Lease expirations - Suburban properties ^1, 2, 3^

^^

as of March 31, 2020

Boston
BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 145,745 145,745
2021 524,200 524,200
2022 635,934 635,934
2023 273,974 273,974
2024 532,620 532,620
2025 778,663 778,663
2026 216,647 216,647
2027 330,491 330,491
2028 203,818 203,818
2029 290,572 290,572
Thereafter 644,639 587,155

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
2020 269,717 269,717
2021 68,430 68,430
2022 111,459 111,459
2023 53,291 53,291
2024 485,788 485,788
2025 204,769 204,769
2026 214,924 214,924
2027 217,641 217,641
2028 43,594 43,594
2029 46,766 46,766
Thereafter 220,607 220,607

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
2020 147,150 89,430 ^4^
2021 524,246 493,976
2022 302,650 179,404
2023 248,777 195,228
2024 120,028 86,278
2025 182,638 176,471
2026 166,066 83,033
2027 32,260 32,260
2028 24,512 12,256
2029 36,568 18,284
Thereafter 35,530 17,765

All values are in US Dollars.

49

Q1 2020
Lease expirations - Suburban properties (continued) ^1, 2, 3^

^^

as of March 31, 2020

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
2020 663,817 663,817 ^4^
2021 417,494 417,494
2022 174,331 174,331
2023 372,706 372,706
2024 553,761 524,591
2025 449,158 385,544
2026 123,341 123,341
2027 367,653 351,951
2028 226,575 226,575
2029 777,084 777,084
Thereafter 681,876 681,876

All values are in US Dollars.

_____________

^1^ For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.
^2^ Includes partially placed in-service leased space. Does not include residential units and hotel.
--- ---
^3^ Does 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.
--- ---
^4^ Includes square feet expiring on the last day of the current quarter.
--- ---

50

Q1 2020
Research coverage

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call 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 above do not represent the opinions, estimates or forecasts of the Company or its management. The Company does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

Equity Research Coverage
Argus Research Company Jacob Kilstein 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citigroup Global Markets Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa / Jason Green 212.446.9462
Goldman Sachs & Company, Inc. Richard Skidmore 801.741.5459
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Jonathan Petersen 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Craig Mailman / Jordan Sadler 917.368.2316 / 917.368.2280
Mizuho Securities Zachary Silverberg/Omotayo Okusanya 212.205.7855
Morgan Stanley Vikram Malhotra 212.761.7064
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb / Daniel Santos 212.466.7937 / 212.466.7927
RBC Capital Markets Mike Carroll 440.715.2649
RW Baird David Rodgers 216.737.7341
Scotia Capital Inc. Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Stifel, Nicolaus & Company John Guinee / Aaron Wolf 443.224.1307 / 443.224.1206
SunTrust Robinson Humphrey Michael Lewis 212.319.5659
Wells Fargo Securities Blaine Heck 443.263.6529
Debt Research Coverage
--- --- ---
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 Thierry Perrein / Kevin McClure 704.715.8455 / 704.410.3252
Rating Agencies
--- --- ---
Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508

51

Q1 2020
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 priority allocations, income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 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) on and after February 6, 2015, which was the end of the performance period for 2012 OPP Units and thus the date earned, common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) on and after February 4, 2016, which was the end of the performance period for 2013 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units, (6) on and after February 3, 2017, which was the end of the performance period for 2014 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units, (7) on and after February 4, 2018, which was the end of the performance period for 2015 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2015 MYLTIP Units that were issued in the form of LTIP Units, (8) on and after February 9, 2019, which was the end of the performance period for 2016 MYLTIP Units and and thus the date earned, common units issuable upon conversion of 2016 MYLTIP Units that were issued in the form of LTIP Units and (9) on and after February 6, 2020, which was the end of the performance period for 2017 MYLTIP Units and and thus the date earned, common units issuable upon conversion of 2017 MYLTIP Units that were issued in the form of LTIP Units plus (z) outstanding shares of 5.25% Series B Cumulative Redeemable Preferred Stock multiplied by their fixed liquidation preference of $2,500 per share. 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, 2018, 2019 and 2020 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.

52

Q1 2020
Definitions (continued)

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

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

In some cases the Company also presents (A) BXP’s Share of EBITDAre – cash, which is BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line 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. common shareholders as presented in the Company’s consolidated financial statements. EBITDAre should not be considered a substitute to net income attributable to Boston Properties, Inc. common shareholders in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

Fixed Charge Coverage Ratio

Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) 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, hedge amortization and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.’s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

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

53

Q1 2020
Definitions (continued)

Funds from Operations (FFO)

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

The Company’s computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.  In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

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

Interest Coverage Ratio

Interest Coverage Ratio, calculated including and excluding capitalized interest, is a non-GAAP financial measure equal to BXP’s Share of EBITDAre – cash divided by Adjusted interest expense. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue and non-cash termination income adjustment (fair value lease amounts) and adding straight-line 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.

54

Q1 2020
Definitions (continued)

Net Operating Income (NOI)

Net operating income (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 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. In some cases, the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, straight-line ground rent expense adjustment and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

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

Rental Obligations

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

Rental Revenue

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

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 19 - 22 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

55

Q1 2020
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Mar-20 31-Dec-19
Revenue $ 752,556 $ 757,501
Partners’ share of revenue from consolidated joint ventures (JVs) (77,577 ) (75,000 )
BXP’s share of revenue from unconsolidated JVs 45,408 40,146
BXP’s Share of revenue $ 720,387 $ 722,647
Straight-line rent $ 31,430 $ 40,460
Partners’ share of straight-line rent from consolidated JVs (4,971 ) (3,431 )
BXP’s share of straight-line rent from unconsolidated JVs 4,803 6,472
BXP’s Share of straight-line rent $ 31,262 $ 43,501
Fair value lease revenue ^1^ $ 2,991 $ 2,965
Partners’ share of fair value lease revenue from consolidated JVs ^1^ (628 ) (633 )
BXP’s share of fair value lease revenue from unconsolidated JVs ^1^ 826 966
BXP’s Share of fair value lease revenue ^2^ $ 3,189 $ 3,298
Lease termination income $ 2,399 $ 1,397
Partners’ share of termination income from consolidated JVs (238 ) —
BXP’s share of termination income from unconsolidated JVs — —
BXP’s Share of termination income $ 2,161 $ 1,397
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) $ — $ —
Hedge amortization $ 1,579 $ 1,579
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 $ 1,435 $ 1,435
Straight-line ground rent expense adjustment $ 976 $ 1,016
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 41 40
BXP’s Share of straight-line ground rent expense adjustment $ 1,017 $ 1,056
Depreciation and amortization $ 171,094 $ 169,897
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,627 ) (18,116 )
BXP’s share of depreciation and amortization from unconsolidated JVs 18,332 14,458
BXP’s Share of depreciation and amortization $ 171,799 $ 166,239
Lease transaction costs that qualify as rent inducements ^2^ $ 2,399 $ 2,170
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs ^2^ (226 ) (168 )
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs ^2^ 1,850 7,401
BXP’s Share of lease transaction costs that qualify as rent inducements ^2^ $ 4,023 $ 9,403
2nd generation tenant improvements and leasing commissions $ 70,386 $ 91,627
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (21,113 ) (5,609 )
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 670 23
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 49,943 $ 86,041

56

Q1 2020
Reconciliations (continued)
BXP’s Share of select items (continued)
--- --- --- --- --- --- ---
Three Months Ended
31-Mar-20 31-Dec-19
Maintenance capital expenditures ^3^ $ 20,051 $ 25,818
Partners’ share of maintenance capital expenditures from consolidated JVs ^3^ (126 ) (998 )
BXP’s share of maintenance capital expenditures from unconsolidated JVs ^3^ 319 637
BXP’s Share of maintenance capital expenditures ^3^ $ 20,244 $ 25,457
Interest expense $ 101,591 $ 102,880
Partners’ share of interest expense from consolidated JVs (10,776 ) (10,902 )
BXP’s share of interest expense from unconsolidated JVs 10,923 10,774
BXP’s Share of interest expense $ 101,738 $ 102,752
Capitalized interest $ 14,149 $ 13,658
Partners’ share of capitalized interest from consolidated JVs (1,284 ) (1,264 )
BXP’s share of capitalized interest from unconsolidated JVs 2,339 2,620
BXP’s Share of capitalized interest $ 15,204 $ 15,014
Amortization of financing costs $ 3,279 $ 3,300
Partners’ share of amortization of financing costs from consolidated JVs (382 ) (382 )
BXP’s share of amortization of financing costs from unconsolidated JVs 452 423
BXP’s Share of amortization of financing costs $ 3,349 $ 3,341

_____________

^1^ Represents 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.
^2^ Consists 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.
--- ---
^3^ Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
--- ---

57

Q1 2020
Reconciliations (continued)

for the three months ended March 31, 2020

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease ^1^ $ 69,133 $ 96,613 $ 165,746
Straight-line rent 6,927 4,888 11,815
Fair value lease revenue 1,448 109 1,557
Termination income 474 106 580
Total lease revenue 77,982 101,716 179,698
Parking and other 2 1,357 1,359
Total rental revenue ^2^ 77,984 103,073 181,057
Expenses
Operating 30,700 35,716 66,416
Net Operating Income (NOI) 47,284 67,357 114,641
Other income (expense)
Interest and other income 341 385 726
Interest expense (21,175 ) (5,130 ) (26,305 )
Depreciation and amortization expense (19,799 ) (20,613 ) (40,412 )
General and administrative expense (21 ) (81 ) (102 )
Total other income (expense) (40,654 ) (25,439 ) (66,093 )
Net income $ 6,630 $ 41,918 $ 48,548
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) ^3^ $ 18,236 $ 29,425 $ 47,661
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,048 $ 37,932 $ 66,980
Unearned portion of capitalized fees ^4^ $ (178 ) $ 234 $ 56
Partners’ share of select items ^3^
Partners’ share hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 36 $ 382
Partners’ share of depreciation and amortization related to capitalized fees $ 345 $ 298 $ 643
Partners’ share of capitalized interest $ — $ 1,284 $ 1,284
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ 226 $ 226
Partners’ share of management and other fees $ 678 $ 886 $ 1,564
Partners’ share of basis differential and other adjustments $ (29 ) $ (147 ) $ (176 )
Reconciliation of Partners’ share of EBITDAre ^3^
Partners’ NCI $ 1,660 $ 17,826 $ 19,486
Add:
Partners’ share of interest expense after BXP’s basis differential 8,467 2,309 10,776
Partners’ share of depreciation and amortization expense after BXP’s basis differential 8,236 9,391 17,627
Partners’ share of EBITDAre $ 18,363 $ 29,526 $ 47,889
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) ^3^
Rental revenue ^2^ $ 31,194 $ 46,383 $ 77,577
Less: Termination income 190 48 238
Rental revenue (excluding termination income) ^2^ 31,004 46,335 77,339
Less: Operating expenses (including partners’ share of management and other fees) 12,958 16,958 29,916
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,046 $ 29,377 $ 47,423
Rental revenue (excluding termination income) ^2^ $ 31,004 $ 46,335 $ 77,339
Less: Straight-line rent 2,771 2,200 4,971
Fair value lease revenue 579 49 628
Add: Lease transaction costs that qualify as rent inducements — 226 226
Subtotal 27,654 44,312 71,966
Less: Operating expenses (including partners’ share of management and other fees) 12,958 16,958 29,916
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 14,696 $ 27,354 $ 42,050

58

Q1 2020
Reconciliations (continued)

for the three months ended March 31, 2020

(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 Revenue ^3^ (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue ^2^ $ 31,194 $ 46,383 $ 77,577
Add: Development and management services revenue — — —
Revenue $ 31,194 $ 46,383 $ 77,577

_________

^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 percentage.
--- ---
^4^ Capitalized 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.
--- ---

59

Q1 2020
Reconciliations (continued)

for the three months ended March 31, 2020

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES
Market Square North Metropolitan Square 901 New York Avenue Annapolis Junction ^1^ 500 North Capitol Street, N.W. Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons ^2^ Other Joint Ventures ^3^ Total Unconsolidated Joint Ventures
Revenue
Lease ^4^ $ 5,281 $ 4,360 $ 6,187 $ 1,938 $ 4,334 $ 19,113 $ 15,409 $ 7,550 $ 8,467 $ 2,058 $ 74,697
Straight-line rent 397 2,086 270 52 (19 ) 984 1,254 1,359 406 2,874 9,663
Fair value lease revenue 9 908 40 — 957
Termination income — — — — — — — — — — —
Total lease revenue 5,678 6,446 6,457 1,990 4,315 20,106 17,571 8,909 8,913 4,932 85,317
Parking and other 209 480 330 — 123 2,767 2,177 95 1 1,137 7,319
Total rental revenue ^5^ 5,887 6,926 6,787 1,990 4,438 22,873 19,748 9,004 8,914 6,069 92,636
Expenses
Operating 2,484 3,325 3,112 756 1,806 6,251 7,497 3,797 3,066 3,043 ^6^ 35,137
Net operating income 3,403 3,601 3,675 1,234 2,632 16,622 12,251 5,207 5,848 3,026 57,499
Other income/(expense)
Development and management services revenue — — — (1 ) — — — — 6 — 5
Interest and other income 56 — 98 51 18 172 1 49 — 117 562
Interest expense (1,424 ) (1,653 ) (2,072 ) (473 ) (1,116 ) (4,979 ) (6,972 ) (2,655 ) — (1,239 ) (22,583 )
Depreciation and amortization expense (1,139 ) (1,776 ) (1,410 ) (663 ) (872 ) (5,188 ) (8,969 ) (3,537 ) (5,737 ) (2,744 ) (32,035 )
General and administrative expense — (14 ) — — — (26 ) (152 ) (56 ) (14 ) (2 ) (264 )
Total other income/(expense) (2,507 ) (3,443 ) (3,384 ) (1,086 ) (1,970 ) (10,021 ) (16,092 ) (6,199 ) (5,745 ) (3,868 ) (54,315 )
Net income/(loss) $ 896 $ 158 $ 291 $ 148 $ 662 $ 6,601 $ (3,841 ) $ (992 ) $ 103 $ (842 ) $ 3,184
BXP’s economic ownership percentage 50 % 20 % 25 % 50 % 30 % 50 % 55 % 50 % 55 %
BXP’s share of amortization of financing costs $ 10 $ 5 $ 22 ^7^ $ 8 $ 4 $ 13 $ 72 $ 166 $ — $ 152 $ 452
BXP’s share of capitalized interest $ — $ 126 $ — ^7^ $ — $ — $ — $ — $ 713 $ — $ 1,500 $ 2,339
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — ^7^ $ — $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ 402 $ 35 $ 47 ^7^ $ 70 $ 201 $ 2,288 $ (2,108 ) $ (515 ) $ (451 ) $ (338 ) $ (369 )
Add:
BXP’s share of interest expense 712 331 1,036 ^7^ 237 335 2,490 3,835 1,328 — 619 10,923
BXP’s share of depreciation and amortization expense 615 352 803 ^7^ 335 259 4,488 ^8^ 4,928 1,788 3,606 1,158 18,332
BXP’s share of EBITDAre $ 1,729 $ 718 $ 1,886 ^7^ $ 642 $ 795 $ 9,266 $ 6,655 $ 2,601 $ 3,155 $ 1,439 $ 28,886

60

Q1 2020
Reconciliations (continued)
UNCONSOLIDATED JOINT VENTURES
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Market Square North Metropolitan Square 901 New York Avenue Annapolis Junction ^1^ 500 North Capitol Street, N.W. Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons ^2^ Other Joint Ventures ^3^ Total Unconsolidated Joint Ventures
BXP’s share of rental revenue ^5^ $ 2,944 $ 1,385 $ 3,394 ^7^ $ 995 $ 1,331 $ 12,318 ^8^ $ 10,861 $ 4,502 $ 4,853 $ 2,823 $ 45,406
BXP’s share of operating expenses 1,242 665 1,556 ^7^ 378 542 3,126 4,123 1,899 1,694 1,423 16,648
BXP’s share of net operating income/(loss) 1,702 720 1,838 ^7^ 617 789 9,192 6,738 2,603 3,159 1,400 28,758
Less:
BXP’s share of termination income — — — ^7^ — — — — — — — —
BXP’s share of net operating income/(loss) (excluding termination income) 1,702 720 1,838 ^7^ 617 789 9,192 6,738 2,603 3,159 1,400 28,758
Less:
BXP’s share of straight-line rent 199 417 135 ^7^ 26 (6 ) 936 ^8^ 690 680 289 1,437 4,803
BXP’s share of fair value lease revenue — — — ^7^ — — 442 ^8^ 499 — (115 ) — 826
Add:
BXP’s share of straight-line ground rent expense adjustment — — — ^7^ — — — — — — 41 41
BXP’s share of lease transaction costs that qualify as rent inducements — 21 — ^7^ — — 524 37 261 (227 ) 1,234 1,850
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 1,503 $ 324 $ 1,703 ^7^ $ 591 $ 795 $ 8,338 ^8^ $ 5,586 $ 2,184 $ 2,758 $ 1,238 $ 25,020
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue ^5^ $ 2,944 $ 1,385 $ 3,394 ^7^ $ 995 $ 1,331 $ 12,318 ^8^ $ 10,861 $ 4,502 $ 4,853 $ 2,823 $ 45,406
Add:
BXP’s share of development and management services revenue — — — ^7^ (1 ) — — — — 3 — 2
BXP’s share of revenue $ 2,944 $ 1,385 $ 3,394 ^7^ $ 994 $ 1,331 $ 12,318 ^8^ $ 10,861 $ 4,502 $ 4,856 $ 2,823 $ 45,408

_____________

^1^ Annapolis Junction includes three in-service properties and two undeveloped land parcels.
^2^ For additional detail see, page 11.
--- ---
^3^ Includes 1001 6th Street, Dock 72, 7750 Wisconsin Avenue, 1265 Main Street, Wisconsin Place Parking Facility, 3 Hudson Boulevard, 540 Madison Avenue and Platform 16.
--- ---
^4^ Lease revenue includes recoveries from tenants and service income from tenants.^^
--- ---
^5^ See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.
--- ---
^6^ Includes approximately $80 of straight-line ground rent expense.
--- ---
^7^ Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.
--- ---
^8^ 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 venture.
--- ---

61

Q1 2020
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-19
Revenue
Lease $ 679,251
Parking and other 24,906
Hotel revenue 8,938
Development and management services 9,277
Direct reimbursements of payroll and related costs from management services contracts 3,395
Total revenue 725,767
Expenses
Operating 127,857
Real estate taxes 129,660
Demolition costs —
Hotel 7,863
General and administrative 41,762
Payroll and related costs from management services contracts 3,395
Transaction costs 460
Depreciation and amortization 164,594
Total expenses 475,591
Other income (expense)
Income from unconsolidated joint ventures 213
Losses on sales of real estate (905 )
Gains from investments in securities 2,969
Interest and other income 3,753
Impairment losses (24,038 )
Interest expense (101,009 )
Net income 131,159
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,830 )
Noncontrolling interest - common units of the Operating Partnership (11,599 )
Net income attributable to Boston Properties, Inc. 100,730
Preferred dividends (2,625 )
Net income attributable to Boston Properties, Inc. common shareholders $ 98,105
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.63
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.63

62

		Exhibit

Exhibit 99.2

bxplogohorizontalcolorrgba34.jpg

BOSTON PROPERTIES ANNOUNCES FIRST QUARTER 2020 RESULTS; REPORTS EPS OF $3.20 AND FFO PER SHARE OF $1.83

Reports April Office Tenant Collections of 95%

BOSTON, MA, April 28, 2020 - 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, 2020.

Financial highlights for the first quarter include:

• Revenue grew 4% to $752.6 million as compared to revenue of $725.8 million for the first quarter ended March 31, 2019.
• Net income attributable to common shareholders was $497.5 million, or $3.20 per diluted share (EPS), compared to $98.1 million, or $0.63 per diluted share, for the quarter ended March 31, 2019, primarily due to $2.37 per diluted share from gains on asset sales in the first quarter of 2020.
--- ---
• Funds from Operations (FFO) was $284.1 million, or $1.83 per diluted share, reflecting growth of 7% compared to FFO of $266.0 million, or $1.72 per diluted share, for the quarter ended March 31, 2019.
--- ---
◦ FFO in the first quarter of $1.83 per diluted share was $0.02 per share greater than the midpoint of the Company’s first quarter guidance provided on January 28, 2020 due primarily to $0.02 per share of greater-than-projected portfolio performance.
--- ---

The Company provided a business update pertaining to the current COVID-19 pandemic including:

• The safety of Boston Properties’ tenants and employees remains the Company’s highest priority. The Company has formed a Heath and Security Task Force to prepare buildings for re-occupancy and will implement a number of processes, technologies and communications to provide a safe environment at the Company’s properties.
• All office properties throughout the Boston Properties portfolio remain open for tenants, although physical occupancy is low due to shelter-in-place orders.
--- ---
• For the month of April, the Company collected 90% of its total commercial rent payments due April 1 from retail and office tenants. Rent collections from office tenants, excluding retail, were 95% in total.
--- ---
• The Company continues to maintain a strong liquidity position with $2.1 billion of total liquidity as of March 31, 2020 consisting of $661 million of cash, $151 million of cash held in 1031 exchange escrow as well as $1.25 billion available under its unsecured revolving credit facility.
--- ---
• Although the Company’s office rent collections were strong in April, due to the uncertainty of the impacts of the COVID-19 pandemic, including the unknown duration and impact of
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–more–

shelter-in-place requirements and the uncertain economic climate, the Company believes it is prudent to withdraw its guidance for full year 2020 EPS and FFO.

Recent business highlights include:

• Completed and fully placed in-service 17Fifty Presidents Street located in Reston, Virginia on March 26, 2020. 17Fifty Presidents Street is a build-to-suit project with approximately 276,000 net rentable square feet of Class A office space that is 100% leased to an affiliate of Leidos Holdings, Inc.
• Completed the sale of New Dominion Technology Park located in Herndon, Virginia on February 20, 2020, for a gross sale price of $256.0 million, resulting in net proceeds of approximately $254.0 million and reported gain on sale of approximately $192.3 million. New Dominion Technology Park is comprised of two Class A office properties aggregating approximately 493,000 net rentable square feet.
--- ---
• Completed the acquisition of the land underlying the ground lease at Platform 16 located in San Jose, California on February 20, 2020, for a purchase price of approximately $74.0 million at BXP’s Share. Platform 16 is a joint venture in which the Company owns 55%. Platform 16 consists of a parcel of land totaling approximately 5.6 acres that is expected to support the development of approximately 1.1 million square feet of commercial office space.
--- ---
• Entered into a joint venture with Alexandria Real Estate Equities to develop, own and operate approximately 1.1 million square feet of existing office and life science lab properties in South San Francisco, California, with the opportunity for approximately 640,000 square feet of additional future development. The Company contributed three office properties totaling approximately 768,000 square feet and development rights resulting in a non-cash gain on sale of real estate of approximately $217.7 million. Upon completion, the joint venture is expected to own an approximately 1.7 million square foot life science campus including a mix of office and lab buildings.  Boston Properties will have a 50% ownership interest in the joint venture.
--- ---

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, 2020. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

Boston Properties will host a conference call on Wednesday, April 29, 2020 at 10:00 AM Eastern Time, open to the general public, to discuss the first quarter 2020 results, the business update pertaining to the current COVID-19 pandemic and other 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 3398131. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 3398131. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

Additionally, a copy of Boston Properties’ first quarter 2020 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at investors.bxp.com.

–more–

Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s portfolio totals 51.8 million square feet and 196 properties, including 10 properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

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

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
March 31, 2020 December 31, 2019
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 21,273,137 $ 21,458,412
Construction in progress 804,179 789,736
Land held for future development 264,893 254,828
Right of use assets - finance leases 237,394 237,394
Right of use assets - operating leases 148,057 148,640
Less: accumulated depreciation (5,209,487 ) (5,266,798 )
Total real estate 17,518,173 17,622,212
Cash and cash equivalents 660,733 644,950
Cash held in escrows 197,845 46,936
Investments in securities 28,101 36,747
Tenant and other receivables, net 89,431 112,807
Related party note receivable, net 78,800 80,000
Note receivable, net 15,794 15,920
Accrued rental income, net 1,059,677 1,038,788
Deferred charges, net 667,076 689,213
Prepaid expenses and other assets 136,730 41,685
Investments in unconsolidated joint ventures 1,377,338 955,647
Total assets $ 21,829,698 $ 21,284,905
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,919,157 $ 2,922,408
Unsecured senior notes, net 8,393,009 8,390,459
Unsecured line of credit 250,000 —
Unsecured term loan, net 499,058 498,939
Lease liabilities - finance leases 227,067 224,042
Lease liabilities - operating leases 200,573 200,180
Accounts payable and accrued expenses 293,831 377,553
Dividends and distributions payable 171,026 170,713
Accrued interest payable 82,388 90,016
Other liabilities 366,852 387,994
Total liabilities 13,402,961 13,262,304
Commitments and contingencies — —
Redeemable deferred stock units 5,854 8,365
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at March 31, 2020 and December 31, 2019 200,000 200,000

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
March 31, 2020 December 31, 2019
(in thousands, except for share and par value amounts)
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,393,455 and 154,869,198 issued and 155,314,555 and 154,790,298 outstanding at March 31, 2020 and December 31, 2019, respectively 1,553 1,548
Additional paid-in capital 6,321,475 6,294,719
Dividends in excess of earnings (416,740 ) (760,523 )
Treasury common stock at cost, 78,900 shares at March 31, 2020 and December 31, 2019 (2,722 ) (2,722 )
Accumulated other comprehensive loss (55,700 ) (48,335 )
Total stockholders’ equity attributable to Boston Properties, Inc. 6,047,866 5,684,687
Noncontrolling interests:
Common units of the Operating Partnership 636,572 600,860
Property partnerships 1,736,445 1,728,689
Total equity 8,420,883 8,014,236
Total liabilities and equity $ 21,829,698 $ 21,284,905

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED STATEMENTS OF OPERATIONS<br><br>(Unaudited)
Three months ended March 31,
2020 2019
(in thousands, except for per share amounts)
Revenue
Lease $ 710,111 $ 679,251
Parking and other 24,504 24,906
Hotel revenue 6,825 8,938
Development and management services 7,879 9,277
Direct reimbursements of payroll and related costs from management services contracts 3,237 3,395
Total revenue 752,556 725,767
Expenses
Operating
Rental 262,966 257,517
Hotel 6,821 7,863
General and administrative 36,454 41,762
Payroll and related costs from management services contracts 3,237 3,395
Transaction costs 615 460
Depreciation and amortization 171,094 164,594
Total expenses 481,187 475,591
Other income (expense)
Income (loss) from unconsolidated joint ventures (369 ) 213
Gains (losses) on sales of real estate 410,165 (905 )
Interest and other income 3,017 3,753
Gains (losses) from investments in securities (5,445 ) 2,969
Impairment losses — (24,038 )
Interest expense (101,591 ) (101,009 )
Net income 577,146 131,159
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (19,486 ) (18,830 )
Noncontrolling interest—common units of the Operating Partnership (57,539 ) (11,599 )
Net income attributable to Boston Properties, Inc. 500,121 100,730
Preferred dividends (2,625 ) (2,625 )
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 98,105
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 3.20 $ 0.63
Weighted average number of common shares outstanding 155,011 154,525
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 3.20 $ 0.63
Weighted average number of common and common equivalent shares outstanding 155,258 154,844

–more–

BOSTON PROPERTIES, INC.<br><br>FUNDS FROM OPERATIONS (1)<br><br>(Unaudited)
Three months ended March 31,
2020 2019
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496 $ 98,105
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539 11,599
Noncontrolling interests in property partnerships 19,486 18,830
Net income 577,146 131,159
Add:
Depreciation and amortization expense 171,094 164,594
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,627 ) (18,002 )
Company’s share of depreciation and amortization from unconsolidated joint ventures 18,332 15,470
Corporate-related depreciation and amortization (469 ) (395 )
Impairment loss — 24,038
Less:
Gains (losses) on sales of real estate 410,165 (905 )
Noncontrolling interests in property partnerships 19,486 18,830
Preferred dividends 2,625 2,625
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 316,200 296,314
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 32,138 30,307
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 284,062 $ 266,007
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.84 % 89.77 %
Weighted average shares outstanding - basic 155,011 154,525
FFO per share basic $ 1.83 $ 1.72
Weighted average shares outstanding - diluted 155,258 154,844
FFO per share diluted $ 1.83 $ 1.72

–more–

(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.

–more–

BOSTON PROPERTIES, INC.<br><br>PORTFOLIO LEASING PERCENTAGES
% Leased by Location
March 31, 2020 December 31, 2019
Boston 96.5 % 95.9 %
Los Angeles 95.9 % 96.7 %
New York 94.1 % 92.9 %
San Francisco 93.8 % 93.7 %
Washington, DC 84.7 % 87.6 %
Total Portfolio 92.9 % 93.0 %

AT THE COMPANY

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

(617) 236-3352

Sara Buda

Vice President, Investor Relations

(617) 236-3429

sbuda@bxp.com

#

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