Equibles

8-K

BXP, Inc. (BXP)

8-K 2021-01-26 For: 2021-01-26
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): January 26, 2021

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

Registrant Trading Symbol(s) Name of each exchange on which registered
Boston Properties, Inc. BXP New York Stock Exchange
Boston Properties, Inc. BXP PRB 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 January 26, 2021, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the fourth 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 endedDecember31, 2020.
*99.2 Press release datedJanuary26, 2021.
*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: January 26, 2021

Document

Exhibit 99.1

image1a.jpg

image141.jpg

Supplemental Operating and Financial Data

for the Quarter Ended December 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 51.2 million square feet and 196 properties, including six properties under construction/redevelopment, and it 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 nine consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “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 and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; 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 Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 56.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 60.

GENERAL INFORMATION

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

(Cover photo: 10 and 20 CityPoint, Waltham, MA)

Q4 2020
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance 2
FINANCIAL INFORMATION
COVID-19 Impact 3
Financial Highlights 4
Consolidated Balance Sheets 6
Consolidated Income Statements 7
Funds From Operations (FFO) 8
Funds Available for Distribution (FAD) 10
Net Operating Income (NOI) 11
Same Property Net Operating Income (NOI) by Reportable Segment 13
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 15
Acquisitions and Dispositions 16
DEVELOPMENT ACTIVITY
Construction in Progress 17
Land Parcels and Purchase Options 18
LEASING ACTIVITY
Leasing Activity 19
PROPERTY STATISTICS
Portfolio Overview 20
Residential and Hotel Performance 21
In-Service Property Listing 23
Top 20 Tenants Listing and Portfolio Tenant Diversification 27
Occupancy by Location 28
DEBT AND CAPITALIZATION
Capital Structure 29
Debt Analysis 30
Senior Unsecured Debt Covenant Compliance Ratios 31
Net Debt to EBITDAre 32
Debt Ratios 33
JOINT VENTURES
Consolidated Joint Ventures 34
Unconsolidated Joint Ventures 36
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 40
Boston 41
Los Angeles 43
New York 45
San Francisco 47
Washington, DC 49
CBD 51
Suburban 53
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 55
Definitions 56
Reconciliations 60
Consolidated Income Statement - Prior Year 66
Funds From Operations (FFO) - Prior Year 67
Funds Available for Distribution (FAD) - Prior Year 68
Q4 2020
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Company profile

SNAPSHOT

(as of December 31, 2020)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures) 196
Total Square Feet (includes unconsolidated joint ventures) 51.2 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 $94.53 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 4.1%
Consolidated Market Capitalization 1 $29.6 billion
BXP’s Share of Market Capitalization 1, 2 $29.6 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

MANAGEMENT

Board of Directors Management
Joel I. Klein Chairman of the Board Owen D. Thomas Chief Executive Officer
Owen D. Thomas Chief Executive Officer Douglas T. Linde President
Douglas T. Linde President Raymond A. Ritchey Senior Executive Vice President
Kelly A. Ayotte Chair of the Compensation Committee Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan
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 Donna D. Garesche Senior Vice President and Chief Human Resources Officer
William H. Walton, III
Michael R. Walsh Senior Vice President and Chief Accounting Officer
James J. Whalen Senior Vice President and Chief Information & Technology Officer

____________________

1For additional detail, see page 29.

2For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

Q4 2020
Guidance

The Company’s guidance for the first quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on January 26, 2021 and otherwise referenced during the Company’s conference call scheduled for January 27, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) other possible capital markets activity, (3) possible future write-offs of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 58. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

First Quarter 2021
Low High
Projected EPS (diluted) $ 0.53 $ 0.57
Add:
Projected Company share of real estate depreciation and amortization 1.00 1.00
Projected FFO per share (diluted) $ 1.53 $ 1.57
Q4 2020
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COVID-19 Impact

Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. Set forth below are the details related to the effects of the COVID-19 pandemic to the Company’s operations for the three months ended December 31, 2020.

(unaudited and dollars in thousands)

For the fourth quarter of 2020, Revenue was $665,089 and Net income attributable to Boston Properties, Inc. common shareholders was $7,310. Included in Net income attributable to Boston Properties, Inc. common shareholders for Q4 2020 is:

•a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

For the fourth quarter of 2019, Revenue was $757,501 and Net income attributable to Boston Properties, Inc. common shareholders was $140,824.

BXP’s Share of Revenue1 for the fourth quarter of 2020 was $625,972, marking a decrease of $96,675 from $722,647 for Q4 2019. Included in BXP’s Share for Q4 2020 is an aggregate of $63,601 of primarily COVID-19 related decreases consisting of:

•$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$11,329 decrease due to limited occupancy at our only hotel.

Funds from Operations (“FFO”) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)1, 3 for Q4 2020 was $236,383, marking a decrease of $86,514 from $322,897 for Q4 2019. Included in Q4 2020 is an aggregate of $56,461 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income)1, 4 was $357,713, marking a decrease of $63,741 from $421,454 for Q4 2019. Included in Q4 2020 is an aggregate of $47,850 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,

•$292 of write-offs associated with accounts receivable2,

•$11,832 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income) - cash1, 4 was $355,284, marking a decrease of $27,517 from $382,801 for Q4 2019. Included in Q4 2020 is an aggregate of $32,714 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$292 of write-offs associated with accounts receivable2,

•$11,832 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

Funds Available for Distribution (“FAD”)1, 5 was $161,274 for Q4 2020, a decrease of $24,554 from $185,828 for Q4 2019. The distributions to common shareholders and unitholders (excluding any special distributions) were $169,719 for Q4 2020. Included in Q4 2020 is an aggregate of $35,871 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$333 of write-offs associated with accounts receivable2,

•$12,198 decrease in parking and other revenue2, and

•$4,189 decrease in NOI due to limited occupancy at our only hotel.

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For additional information, see page 60.

3For quantitative reconciliations of FFO for the three months ended December 31, 2020 and December 31, 2019, see pages 8 and 67, respectively.

4For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.

5For quantitative reconciliations of FAD for the three months ended December 31, 2020 and December 31, 2019, see pages 10 and 68, respectively.

Q4 2020
Financial highlights

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

Three Months Ended
31-Dec-20 30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 89,854
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.05 $ 0.58
FFO attributable to Boston Properties, Inc. common shareholders 1 $ 213,108 $ 243,978
Diluted FFO per share 1 $ 1.37 $ 1.57
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 161,274 $ 153,481
Selected items:
Revenue $ 665,089 $ 693,268
Recoveries from tenants $ 99,562 $ 105,682
Service income from tenants $ 1,061 $ 967
BXP’s Share of revenue 3 $ 625,972 $ 664,711
BXP’s Share of straight-line rent 3 $ (465) $ 40,478
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3 $ (39,741) $ (5,931)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3 $ (333) $ (3,790)
BXP’s Share of fair value lease revenue 3, 4 $ 1,598 $ 979
BXP’s Share of termination income 3 $ 1,227 $ 2,850
Ground rent expense $ 3,451 $ 3,455
Capitalized interest $ 12,552 $ 13,463
Capitalized wages $ 3,303 $ 3,409
Loss from unconsolidated joint ventures 5 $ (79,700) $ (6,873)
BXP’s share of FFO from unconsolidated joint ventures 6 $ 1,980 $ 13,540
Net income attributable to noncontrolling interests in property partnerships $ 13,980 $ 15,561
FFO attributable to noncontrolling interests in property partnerships 7 $ 29,890 $ 31,394
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 4,365 $ 5,640
Below-market rents (included within Other Liabilities) $ 27,401 $ 29,272
Accrued rental income liability (included within Other Liabilities) $ 125,610 $ 125,442
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8 3.38 3.34
Interest Coverage Ratio (including capitalized interest) 8 3.04 2.97
Fixed Charge Coverage Ratio 8 2.44 2.47
BXP’s Share of Net Debt to BXP’s Share of EBITDAre 9 8.07 7.32
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10 (15.1) % (8.9) %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10 (7.2) % (12.5) %
FAD Payout Ratio 2 105.24 % 110.57 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 60.9 % 62.2 %
Occupancy of In-Service Properties 90.1 % 91.1 %
Capitalization:
Consolidated Debt $ 13,047,758 $ 13,048,161
BXP’s Share of Debt 11 $ 13,006,767 $ 12,966,235
Consolidated Market Capitalization $ 29,610,145 $ 27,147,609
Consolidated Debt/Consolidated Market Capitalization 44.07 % 48.06 %
BXP’s Share of Market Capitalization 11 $ 29,569,154 $ 27,065,683
BXP’s Share of Debt/BXP’s Share of Market Capitalization 11 43.99 % 47.91 %

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1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 8.

2For a quantitative reconciliation of FAD, see page 10. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

4Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

5Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

6For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.

7For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

8For a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 33.

Q4 2020
Financial highlights (continued)

9Includes write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x and 7.21x for the three months ended December 31, 2020 and September 30, 2020, respectively. For additional information and a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 32.

10For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.

11For a quantitative reconciliation for December 31, 2020, see page 29.

Q4 2020
Consolidated Balance Sheets

(unaudited and in thousands)

31-Dec-20 30-Sep-20
ASSETS
Real estate 21,649,383 $ 21,554,453
Construction in progress 868,773 769,846
Land held for future development 450,954 446,392
Right of use assets - finance leases 237,393 237,382
Right of use assets - operating leases 146,406 146,973
Less accumulated depreciation (5,534,102) (5,413,709)
Total real estate 17,818,807 17,741,337
Cash and cash equivalents 1,668,742 1,714,783
Cash held in escrows 50,587 50,006
Investments in securities 39,457 34,934
Tenant and other receivables, net 77,411 76,330
Related party note receivable, net 77,552 77,592
Notes receivable, net 18,729 25,304
Accrued rental income, net 1,122,502 1,111,078
Deferred charges, net 640,085 644,036
Prepaid expenses and other assets 33,840 106,524
Investments in unconsolidated joint ventures 1,310,478 1,377,291
Total assets $ 22,858,190 $ 22,959,215
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,909,081 $ 2,912,494
Unsecured senior notes, net 9,639,287 9,636,397
Unsecured line of credit — —
Unsecured term loan, net 499,390 499,270
Lease liabilities- finance leases 236,492 233,288
Lease liabilities - operating leases 201,713 201,337
Accounts payable and accrued expenses 336,264 345,959
Dividends and distributions payable 171,082 171,070
Accrued interest payable 106,288 88,826
Other liabilities 412,084 369,932
Total liabilities 14,511,681 14,458,573
Commitments and contingencies — —
Redeemable deferred stock units 6,897 5,604
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 and September 30, 2020 200,000 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,797,725 and 155,715,200 issued and 155,718,825 and 155,636,300 outstanding at December 31, 2020 and September 30, 2020, respectively 1,557 1,556
Additional paid-in capital 6,356,791 6,348,076
Dividends in excess of earnings (509,653) (364,720)
Treasury common stock at cost, 78,900 shares at December 31, 2020 and September 30, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (49,890) (52,622)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,996,083 6,129,568
Noncontrolling interests:
Common units of the Operating Partnership 616,596 634,796
Property partnerships 1,726,933 1,730,674
Total equity 8,339,612 8,495,038
Total liabilities and equity $ 22,858,190 $ 22,959,215
Q4 2020
--- ---
Consolidated Income Statements 1

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Dec-20 30-Sep-20
Revenue
Lease $ 639,357 $ 666,674
Parking and other 15,903 16,327
Hotel revenue 464 90
Development and management services 6,356 7,281
Direct reimbursements of payroll and related costs from management services contracts 3,009 2,896
Total revenue 665,089 693,268
Expenses
Operating 117,891 120,833
Real estate taxes 138,308 137,222
Demolition costs (5) 206
Hotel operating 1,178 3,164
General and administrative 2 31,053 27,862
Payroll and related costs from management services contracts 3,009 2,896
Transaction costs 277 307
Depreciation and amortization 168,013 166,456
Total expenses 459,724 458,946
Other income (expense)
Loss from unconsolidated joint ventures 3 (79,700) (6,873)
Gains (losses) on sales of real estate 5,259 (209)
Gains from investments in securities 2 4,296 1,858
Interest and other income (loss) 1,676 (45)
Interest expense (111,991) (110,993)
Net income 24,905 118,060
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (13,980) (15,561)
Noncontrolling interest - common units of the Operating Partnership 4 (990) (10,020)
Net income attributable to Boston Properties, Inc. 9,935 92,479
Preferred dividends (2,625) (2,625)
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 89,854
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.05 $ 0.58
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.05 $ 0.58

_____________

1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 60.

2General and administrative expense includes $4.3 million and $1.9 million and Gains from investments in securities include $4.3 million and $1.9 million for the three months ended December 31, 2020 and September 30, 2020, respectively, related to the Company’s deferred compensation plan.

3Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

4For additional detail, see page 8.

Q4 2020
Funds from operations (FFO) 1

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

Three Months Ended
31-Dec-20 30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 89,854
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 990 10,020
Noncontrolling interests in property partnerships 13,980 15,561
Net income 24,905 118,060
Add:
Depreciation and amortization expense 168,013 166,456
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (15,910) (15,833)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 21,168 20,413
Corporate-related depreciation and amortization (441) (444)
Impairment loss on investment in unconsolidated joint venture 60,524 —
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures 12 —
Gains (losses) on sales of real estate 5,259 (209)
Noncontrolling interests in property partnerships 13,980 15,561
Preferred dividends 2,625 2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 4 236,383 270,675
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 23,275 26,697
FFO attributable to Boston Properties, Inc. common shareholders $ 213,108 $ 243,978
Boston Properties, Inc.’s percentage share of Basic FFO 90.15 % 90.14 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 9.85 % 9.86 %
Basic FFO per share $ 1.37 $ 1.57
Weighted average shares outstanding - basic 155,682 155,645
Diluted FFO per share $ 1.37 $ 1.57
Weighted average shares outstanding - diluted 155,731 155,670

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Dec-20 30-Sep-20
Basic FFO $ 236,383 $ 270,675
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 236,383 270,675
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 23,268 26,693
Boston Properties, Inc.’s share of Diluted FFO $ 213,115 $ 243,982

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Dec-20 30-Sep-20
Shares/units for Basic FFO 172,685 172,677
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 49 25
Shares/units for Diluted FFO 172,734 172,702
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,003 17,032
Boston Properties, Inc.’s share of shares/units for Diluted FFO 155,731 155,670
Boston Properties, Inc.’s percentage share of Diluted FFO 90.16 % 90.14 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.

Q4 2020
Funds from operations (FFO) 1 (continued)

4Basic FFO for Q4 2020 decreased by $86,514 from $322,897 for Q4 2019. For a reconciliation of Basic FFO to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 67. Included in the Q4 2020 amounts are BXP’s Share of: $39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent), $333 of write-offs associated with accounts receivable, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 Basic FFO by $56,461. For additional information, see page 60.

Q4 2020
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Dec-20 30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 89,854
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 990 10,020
Noncontrolling interests in property partnerships 13,980 15,561
Net income 24,905 118,060
Add:
Depreciation and amortization expense 168,013 166,456
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (15,910) (15,833)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 21,168 20,413
Corporate-related depreciation and amortization (441) (444)
Impairment loss on investment in unconsolidated joint venture 60,524 —
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures 12 —
Gains (losses) on sales of real estate 5,259 (209)
Noncontrolling interests in property partnerships 13,980 15,561
Preferred dividends 2,625 2,625
Basic FFO 236,383 270,675
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 2,580 2,965
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 1,216 940
Stock-based compensation 7,990 8,253
Non-real estate depreciation 441 444
Unearned portion of capitalized fees from consolidated joint ventures 6 704 660
Less:
BXP’s Share of straight-line rent 1 (465) 40,478
BXP’s Share of fair value lease revenue 1, 7 1,598 979
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 (11) 828
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 61,601 67,826
BXP’s Share of maintenance capital expenditures 1, 8 26,730 21,722
Hotel improvements, equipment upgrades and replacements 33 69
Funds available for distribution to common shareholders and common unitholders (FAD) 9 (A) $ 161,274 $ 153,481
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 169,719 $ 169,701
FAD Payout Ratio1 (B÷A) 105.24 % 110.57 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.

3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.

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

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 4.

6See page 62 for additional information.

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

8Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

9FAD for Q4 2020 decreased by $24,554 from $185,828 for Q4 2019. For a reconciliation of FAD to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 68. Included in the Q4 2020 amounts are BXP’s Share of: $333 of write-offs associated with accounts receivable, a $19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 FAD by $35,871. For additional information, see page 60.

Q4 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-Dec-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 140,824
Preferred dividends 2,625 2,625
Net income attributable to Boston Properties, Inc. 9,935 143,449
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 990 16,222
Noncontrolling interest in property partnerships 13,980 16,338
Net income 24,905 176,009
Add:
Interest expense 111,991 102,880
Loss from early extinguishments of debt — 1,530
Depreciation and amortization expense 168,013 169,897
Transaction costs 277 569
Payroll and related costs from management services contracts 3,009 2,159
General and administrative expense 31,053 32,797
Less:
Interest and other income (loss) 1,676 4,393
Gains from investments in securities 4,296 2,177
Gains (losses) on sales of real estate 5,259 (57)
Loss from unconsolidated joint ventures (79,700) (936)
Direct reimbursements of payroll and related costs from management services contracts 3,009 2,159
Development and management services revenue 6,356 10,473
Net Operating Income (NOI) 398,352 467,632
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 13,336 24,587
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 40,639 45,093
BXP’s Share of NOI 371,049 447,126
Less:
Termination income 551 1,397
BXP’s share of termination income from unconsolidated joint ventures 1 771 —
Add:
Partners’ share of termination income from consolidated joint ventures 2 95 —
BXP’s Share of NOI (excluding termination income) $ 369,822 $ 445,729
Net Operating Income (NOI) $ 398,352 $ 467,632
Less:
Termination income 551 1,397
NOI from non Same Properties (excluding termination income) 3 14,225 22,349
Same Property NOI (excluding termination income) 383,576 443,886
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 40,544 45,093
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 (76) 206
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 12,565 24,587
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 (2,192) 2,132
BXP’s Share of Same Property NOI (excluding termination income) $ 357,713 $ 421,454

_____________

1For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.

2For a quantitative reconciliation for the three months ended December 31, 2020, see pages 62-63.

3Pages 23-26 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 December 31, 2020 and therefore are no longer a part of the Company’s property portfolio.

Q4 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-Dec-20 31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 140,824
Preferred dividends 2,625 2,625
Net income attributable to Boston Properties, Inc. 9,935 143,449
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 990 16,222
Noncontrolling interest in property partnerships 13,980 16,338
Net income 24,905 176,009
Add:
Interest expense 111,991 102,880
Loss from early extinguishments of debt — 1,530
Depreciation and amortization expense 168,013 169,897
Transaction costs 277 569
Payroll and related costs from management services contracts 3,009 2,159
General and administrative expense 31,053 32,797
Less:
Interest and other income (loss) 1,676 4,393
Gains from investments in securities 4,296 2,177
Gains (losses) on sales of real estate 5,259 (57)
Loss from unconsolidated joint ventures (79,700) (936)
Direct reimbursements of payroll and related costs from management services contracts 3,009 2,159
Development and management services revenue 6,356 10,473
Net Operating Income (NOI) 398,352 467,632
Less:
Straight-line rent 13,187 40,460
Fair value lease revenue 614 2,965
Termination income 551 1,397
Add:
Straight-line ground rent expense adjustment 1 799 843
Lease transaction costs that qualify as rent inducements 2 1,333 2,170
NOI - cash (excluding termination income) 386,132 425,823
Less:
NOI - cash from non Same Properties (excluding termination income) 3 12,702 21,688
Same Property NOI - cash (excluding termination income) 373,430 404,135
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 34,966 41,197
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3, 4 (111) 273
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5 21,175 24,590
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3, 5 4,244 5,000
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 355,284 $ 382,801

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $144 and $173 for the three months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 10.

3Pages 23-26 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 December 31, 2020 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended December 31, 2020, see page 63.

5For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.

Q4 2020
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Dec-20 31-Dec-19 Change Change 31-Dec-20 31-Dec-19 Change Change
Rental Revenue 2 $ 624,363 $ 689,251 $ 9,402 $ 21,996
Less: Termination income 551 1,397 — —
Rental revenue (excluding termination income) 2 623,812 687,854 (9.3) % 9,402 21,996 (57.3) %
Less: Operating expenses and real estate taxes 244,227 253,568 (9,341) (3.7) % 5,411 12,396 (6,985) (56.3) %
NOI (excluding termination income) 2, 3 $ 379,585 $ 434,286 (12.6) % $ 3,991 $ 9,600 (58.4) %
Rental revenue (excluding termination income) 2 $ 623,812 $ 687,854 (9.3) % $ 9,402 $ 21,996 (57.3) %
Less: Straight-line rent and fair value lease revenue 12,037 41,924 (29,887) (71.3) % 241 147 94 63.9 %
Add: Lease transaction costs that qualify as rent inducements 4 1,333 1,477 (144) (9.7) % — — — — %
Subtotal 613,108 647,407 (34,299) (5.3) % 9,161 21,849 (12,688) (58.1) %
Less: Operating expenses and real estate taxes 244,227 253,568 (9,341) (3.7) % 5,411 12,396 (6,985) (56.3) %
Add: Straight-line ground rent expense 5 799 843 (44) (5.2) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 369,680 $ 394,682 (6.3) % $ 3,750 $ 9,453 (60.3) %
Consolidated Total 1, 6 (A) BXP’s share of Unconsolidated Joint Ventures 6 (B)
Three Months Ended % Three Months Ended %
31-Dec-20 31-Dec-19 Change Change 31-Dec-20 31-Dec-19 Change Change
Rental Revenue 2 $ 633,765 $ 711,247 $ 27,364 $ 35,721
Less: Termination income 551 1,397 771 —
Rental revenue (excluding termination income) 2 633,214 709,850 (10.8) % 26,593 35,721 (25.6) %
Less: Operating expenses and real estate taxes 249,638 265,964 (16,326) (6.1) % 11,836 13,266 (1,430) (10.8) %
NOI (excluding termination income) 2, 3 $ 383,576 $ 443,886 (13.6) % $ 14,757 $ 22,455 (34.3) %
Rental revenue (excluding termination income) 2 $ 633,214 $ 709,850 (10.8) % $ 26,593 $ 35,721 (25.6) %
Less: Straight-line rent and fair value lease revenue 12,278 42,071 (29,793) (70.8) % (1,806) 5,361 (7,167) (133.7) %
Add: Lease transaction costs that qualify as rent inducements 4 1,333 1,477 (144) (9.7) % 368 2,496 (2,128) (85.3) %
Subtotal $ 622,269 $ 669,256 (46,987) (7.0) % 28,767 32,856 (4,089) (12.4) %
Less: Operating expenses and real estate taxes 249,638 265,964 (16,326) (6.1) % 11,836 13,266 (1,430) (10.8) %
Add: Straight-line ground rent expense 5 799 843 (44) (5.2) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 373,430 $ 404,135 (7.6) % $ 16,931 $ 19,590 (13.6) %
Partners’ share of Consolidated Joint Ventures 6 (C) BXP’s Share 3, 6, 7, 8, 9
Three Months Ended % Three Months Ended %
31-Dec-20 31-Dec-19 Change Change 31-Dec-20 31-Dec-19 Change Change
Rental Revenue 2 $ 70,452 $ 74,548 $ 590,677 $ 672,420
Less: Termination income 95 — 1,227 1,397
Rental revenue (excluding termination income) 2 70,357 74,548 (5.6) % 589,450 671,023 (12.2) %
Less: Operating expenses and real estate taxes 29,737 29,661 76 0.3 % 231,737 249,569 (17,832) (7.1) %
NOI (excluding termination income) 2, 3 $ 40,620 $ 44,887 (9.5) % $ 357,713 $ 421,454 (15.1) %
Rental revenue (excluding termination income) 2 $ 70,357 $ 74,548 (5.6) % $ 589,450 $ 671,023 (12.2) %
Less: Straight-line rent and fair value lease revenue 5,555 4,131 1,424 34.5 % 4,917 43,301 (38,384) (88.6) %
Add: Lease transaction costs that qualify as rent inducements 4 12 168 (156) (92.9) % 1,689 3,805 (2,116) (55.6) %
Subtotal 64,814 70,585 (5,771) (8.2) % 586,222 631,527 (45,305) (7.2) %
Less: Operating expenses and real estate taxes 29,737 29,661 76 0.3 % 231,737 249,569 (17,832) (7.1) %
Add: Straight-line ground rent expense 5 — — — — % 799 843 (44) (5.2) %
NOI - cash (excluding termination income) 2, 3 $ 35,077 $ 40,924 (14.3) % $ 355,284 $ 382,801 (7.2) %

All values are in US Dollars.

___________________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 11-12.

4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 10.

5Excludes the straight-line impact of approximately $144 and $173 for the three months ended December 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 12.

Q4 2020
Same property net operating income (NOI) by reportable segment (continued)

6For the three months ended December 31, 2020, includes write-offs associated with accounts receivable of approximately $294 for Consolidated Total, $2 for Partners’ share of Consolidated Joint Ventures, $0 for BXP’s share of Unconsolidated Joint Ventures and $292 for BXP’s Share, primarily related to COVID-19. For the three months ended December 31, 2020, includes write-offs associated with straight-line rent of approximately $26,168 for Consolidated Total, $46 for Partners’ share of Consolidated Joint Ventures, $5,415 for BXP’s share of Unconsolidated Joint Ventures and $31,537 for BXP’s Share, primarily related to COVID-19. For additional information, see page 60.

7BXP’s Share equals (A) + (B) - (C).

8BXP’s Share of Same Store NOI (excluding termination income) was $63,741 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent), $292 of write-offs associated with accounts receivable, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI (excluding termination income) by $47,850. For additional information, see page 60.

9BXP’s Share of Same Store NOI-cash (excluding termination income) was $27,517 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $292 of write-offs associated with accounts receivable, $16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI-cash (excluding termination income) by $32,714. For additional information, see page 60.

Q4 2020
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Dec-20 30-Sep-20
Maintenance capital expenditures $ 27,253 $ 22,003
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures 86 (121)
Hotel improvements, equipment upgrades and replacements 33 69
Subtotal 27,372 21,951
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 36 178
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,411 1,793
BXP’s share of repositioning capital expenditures from unconsolidated JVs 322 (203)
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 559 459
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs (26) (77)
BXP’s Share of Capital Expenditures 1 $ 28,608 $ 23,337

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Dec-20 30-Sep-20
Square feet 935,144 1,188,471
Tenant improvements and lease commissions PSF $ 68.87 $ 66.57

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2Includes 100% of unconsolidated joint ventures.

Q4 2020
Acquisitions and dispositions

For the period from January 1, 2020 through December 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
Fourth + Harrison San Francisco, CA June 26, 2020 N/A 140,147 — 140,147 N/A
Beach Cities Media Center (50% ownership interest) El Segundo, CA July 23, 2020 N/A 21,226 — 21,226 N/A
759 Harrison Street San Francisco, CA July 31, 2020 and December 15, 2020 N/A 4,500 — 4,500 N/A
Total Acquisitions 312,828 $ 520,737 $ — $ 520,737 100.0 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain 5
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 492,601 256,000 254,015 192,341
Annapolis Junction Building Eight and two land parcels (50% ownership interest) 3 Annapolis, MD June 25, 2020 125,685 47,000 22,895 5,829
Capital Gallery 4 Washington, DC June 25, 2020 455,000 253,675 246,582 203,524
Crane Meadow (land parcel) Marlborough, MA December 16, 2020 N/A 14,250 14,177 5,248
Total Dispositions 1,841,522 $ 920,925 $ 537,669 $ 624,686

________________

1On 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 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.

2On 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.

3Net cash proceeds totaled approximately $45.8 million, of which the Company’s share was approximately $22.9 million. The joint venture distributed approximately $36.8 million, of which the Company’s share totaled approximately $18.4 million, of available cash and the net proceeds from the sale after the pay down of the mortgage loan. The Company’s share of the gain on sale of real estate totaling approximately $5.8 million is included in Income from Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations.

4On June 25, 2020, the Company sold a portion of its Capital Gallery property located in Washington, DC for a gross sale price of approximately $253.7 million. The portion sold was comprised of approximately 455,000 net rentable square feet of commercial office space. The Company continues to own the land, underground parking garage and remaining commercial office and retail space containing approximately 176,000 net rentable square feet at the property.

5Excludes approximately $0.2 million of gains on sales of real estate recognized during the year ended December 31, 2020 related to gain amounts from sales of real estate occurring in the prior year.

Q4 2020
Construction in progress

as of December 31, 2020

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 12/31/2020 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office and Retail
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 $ 181,917 $ 418,400 $ — $ 236,483 90 % — % N/A
100 Causeway Street (50% ownership) Q2 2021 Q3 2022 Boston, MA 632,000 189,528 267,300 200,000 108,287 — 94 % — % N/A
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q3 2022 Q3 2022 Bethesda, MD 734,000 148,452 198,900 127,500 81,932 4,880 100 % — % N/A
Reston Next (formerly Reston Gateway) Q4 2022 Q4 2023 Reston, VA 1,062,000 372,788 715,300 — — 342,512 85 % — % N/A
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 134,071 356,100 — — 222,029 62 % — % N/A
Total Office Properties under Construction 3,328,000 1,026,756 1,956,000 327,500 190,219 805,904 87 % — % —
Redevelopment Properties
One Five Nine East 53rd (55% ownership) Q2 2021 Q2 2021 New York, NY 220,000 137,964 150,000 — — 12,036 96 % — % N/A
200 West Street 6 Q4 2021 Q4 2021 Waltham, MA 138,000 17,028 47,800 — — 30,772 100 % — % N/A
Total Redevelopment Properties under Construction 358,000 154,992 197,800 — — 42,808 98 % — % N/A
Total Properties Under Construction and Redevelopment 3,686,000 $ 1,181,748 $ 2,153,800 $ 327,500 $ 190,219 $ 848,712 88 % — % —

PROJECTS FULLY PLACED IN-SERVICE DURING 2020

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 12/31/2020 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
17Fifty Presidents Street Q1 2020 Q1 2020 Reston, VA 275,809 $ 132,273 $ 132,320 $ — $ — $ 47 100 % $ 3,143
20 CityPoint Q3 2019 Q3 2021 Waltham, MA 211,476 77,238 99,090 — — 21,852 100 % 1,031
Hub50House (440 units) (50% ownership) Q4 2019 Q1 2022 Boston, MA 320,444 147,641 153,520 90,000 85,624 1,503 61 % 449
The Skylyne (402 units) 7 Q3 2020 Q3 2022 Oakland, CA 318,171 248,460 263,600 — — 15,140 18 % (1,390)
Skylyne Retail 12,825 N/A N/A — — — — % —
Dock 72 (50% ownership) Q4 2019 Q4 2023 Brooklyn, NY 668,625 215,830 260,000 125,000 98,206 17,376 33 % (7,438)
Total Projects Fully Placed In-Service 1,807,350 $ 821,442 $ 908,530 $ 215,000 $ 183,830 $ 55,918 61 % 8 $ (4,205)

_____________

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

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

3Represents percentage leased as of January 22, 2021, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2020. See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

7This property is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.

8Excludes residential units.

Q4 2020
Land parcels and purchase options

as of December 31, 2020

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,938,000
San Jose, CA 3 2,199,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% ownership) 1,078,000
San Francisco, CA 850,000
South San Francisco, CA (50% ownership) 640,000
Waltham, MA 605,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
Santa Clara, CA 3 414,000
Dulles, VA 310,000
El Segundo, CA (50% ownership) 275,000
Total 13,901,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Boston, MA 1,300,000
Waltham, MA 4 1,200,000
Cambridge, MA 330,000
Total 2,830,000

__________________

1Represents 100%.

2During the fourth quarter, a ground lease commenced with a hotel developer for approximately 200,000 square feet. Construction is contingent on their ability to obtain construction financing.

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 25.

4The Company expects to be a 50% partner in the future development of these sites.

Q4 2020
Leasing activity

for the three months ended December 31, 2020

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 3,992,407
Add:
Properties placed (and partially placed) in-service 1 447,018
Leases expiring or terminated during the period 1,013,104
Total space available for lease 5,452,529
1st generation leases —
2nd generation leases with new tenants 363,930
2nd generation lease renewals 571,214
Total space leased 935,144
Vacant space available for lease at the end of the period 4,517,385
Net (increase)/decrease in available space (524,978)
Second generation leasing information: 2
Leases commencing during the period (SF) 935,144
Weighted average lease term (months) 82
Weighted average free rent period (days) 160
Total transaction costs per square foot 3 68.87
Increase (decrease) in gross rents 4 6.89
Increase (decrease) in net rents 5 10.87

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents 6 Total square feet of leases executed in the quarter 7, 8
1st generation 2nd generation total 6 gross 4 net 5
Boston — 171,165 171,165 34.57 % 53.96 % 450,838
Los Angeles — 221,089 221,089 2.86 % 4.01 % —
New York — 264,326 264,326 6.42 % 12.27 % 92,889
San Francisco — 49,882 49,882 16.23 % 21.69 % 67,333
Washington, DC — 228,682 228,682 (6.10) % (8.92) % 547,376
Total / Weighted Average — 935,144 935,144 6.89 % 10.87 % 1,158,436

_____________

1Total square feet of properties placed (and partially placed) in-service in Q4 2020 consists of 447,018 square feet of office at Dock 72.

2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 935,144 square feet of second generation leases that commenced in Q4 2020, leases for 857,379 square feet were signed in prior periods.

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

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 869,418 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 869,418 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”).

6Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

7Amounts shown in this column exclude COVID-19 related lease modifications covering an aggregate of approximately 921,000 square feet that were executed in the fourth quarter of 2020 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $11.5 million in the fourth quarter representing BXP’s Share. Of these lease modifications, the lease terms associated with 163,937 square feet were extended for a period of 12 or more months. In addition, COVID-19 related lease modifications from the second and third quarters of 2020 provide cash rent and/or abatement in the aggregate amount of approximately $7.7 million in the fourth quarter representing BXP’s Share. For additional information, see page 60.

8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 77,765.

Q4 2020
Portfolio overview

for the three months ended December 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 13,787,158 1,106,146 550,114 330,000 15,773,418
Los Angeles 2,180,794 124,932 — — 2,305,726
New York 11,150,990 386,788 — — 11,537,778
San Francisco 7,498,326 334,801 318,171 — 8,151,298
Washington, DC 8,297,967 664,327 822,436 — 9,784,730
Total 42,915,235 2,616,994 1,690,721 330,000 47,552,950
% of Total 90.25 % 5.50 % 3.56 % 0.69 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office 3 Retail 4 Residential Hotel 5 Total
Consolidated $ 599,898 $ 46,769 $ 8,681 $ 376 $ 655,724
Less:
Partners’ share from consolidated joint ventures 6 62,606 7,933 — — 70,539
Add:
BXP’s share from unconsolidated joint ventures 7 28,424 1,715 1,118 — 31,257
BXP’s Share of Rental revenue 1 $ 565,716 $ 40,551 $ 9,799 $ 376 $ 616,442
% of Total 91.77 % 6.58 % 1.59 % 0.06 % 100.00 %

Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 8

CBD Suburban Total
Boston 26.53 % 8.32 % 34.85 %
Los Angeles 3.85 % — % 3.85 %
New York 24.49 % 2.44 % 26.93 %
San Francisco 17.38 % 3.54 % 20.92 %
Washington, DC 4.15 % 9.30 % 13.45 %
Total 76.40 % 23.60 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 23-26.

3Includes the impact of write-offs associated with accounts receivable of approximately $205, $0, $0 and $205 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $25,501, $0, $13,010 and $38,511 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.

4Includes the impact of write-offs associated with accounts receivable of approximately $89, $2, $41 and $128 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $667, $46, $609 and $1,230 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.

5Excludes approximately $88 of revenue from retail tenants that is included in Retail.

6See page 63 for additional information.

7See page 65 for additional information.

8BXP’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 11.

Q4 2020
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel 2
Three Months Ended Three Months Ended
31-Dec-20 30-Sep-20 31-Dec-20 30-Sep-20
Rental Revenue 3 $ 9,069 $ 9,718 $ 464 $ 90
Less: Operating expenses and real estate taxes 5,754 4,955 1,178 3,164
Net Operating Income (Loss) (NOI) 3 3,315 4,763 (714) (3,074)
Add: BXP’s share of NOI from unconsolidated joint ventures 449 233 N/A N/A
BXP’s Share of NOI 3 $ 3,764 $ 4,996 $ (714) $ (3,074)
Rental Revenue 3 $ 9,069 $ 9,718 $ 464 $ 90
Less: Straight line rent and fair value lease revenue 248 159 (6) (6)
Subtotal 8,821 9,559 470 96
Less: Operating expenses and real estate taxes 5,754 4,955 1,178 3,164
NOI - cash basis 3 3,067 4,604 (708) (3,068)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 449 233 N/A N/A
BXP’s Share of NOI - cash basis 3 $ 3,516 $ 4,837 $ (708) $ (3,068)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-20 31-Dec-19
BOSTON
Hub50House (50% ownership), Boston, MA 3, 4 440
Average Monthly Rental Rate $ 3,499 $ 3,101 12.83 %
Average Rental Rate Per Occupied Square Foot $ 5.09 $ 5.21 (2.30) %
Average Physical Occupancy 51.89 % 17.35 % 199.08 %
Average Economic Occupancy 45.58 % 12.95 % 251.97 %
Proto Kendall Square, Cambridge, MA 3, 5 280
Average Monthly Rental Rate $ 2,645 $ 3,013 (12.21) %
Average Rental Rate Per Occupied Square Foot $ 4.88 $ 5.54 (11.91) %
Average Physical Occupancy 89.88 % 97.50 % (7.82) %
Average Economic Occupancy 87.80 % 97.50 % (9.95) %
The Lofts at Atlantic Wharf, Boston, MA 3, 5 86
Average Monthly Rental Rate $ 3,803 $ 4,516 (15.79) %
Average Rental Rate Per Occupied Square Foot $ 4.26 $ 5.02 (15.14) %
Average Physical Occupancy 86.43 % 95.35 % (9.36) %
Average Economic Occupancy 85.06 % 95.12 % (10.58) %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5 N/A
Average Occupancy 6.30 % 75.20 % (91.62) %
Average Daily Rate $ 138.88 $ 284.40 (51.17) %
Revenue Per Available Room $ 9.11 $ 290.09 (96.86) %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 6 402
Average Monthly Rental Rate $ 2,873 N/A N/A
Average Rental Rate Per Occupied Square Foot $ 3.41 N/A N/A
Average Physical Occupancy 6.22 % N/A N/A
Average Economic Occupancy 3.23 % N/A N/A
Q4 2020
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-20 31-Dec-19
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 5 508
Average Monthly Rental Rate $ 2,335 $ 2,372 (1.56) %
Average Rental Rate Per Occupied Square Foot $ 2.42 $ 2.56 (5.47) %
Average Physical Occupancy 80.58 % 77.30 % 4.24 %
Average Economic Occupancy 77.09 % 71.52 % 7.79 %
The Avant at Reston Town Center, Reston, VA 3, 5 359
Average Monthly Rental Rate $ 2,203 $ 2,465 (10.63) %
Average Rental Rate Per Occupied Square Foot $ 2.42 $ 2.70 (10.37) %
Average Physical Occupancy 90.53 % 90.71 % (0.20) %
Average Economic Occupancy 88.71 % 91.19 % (2.72) %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and did not re-open until October 2, 2020.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

5Excludes retail space.

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

Q4 2020
In-service property listing

as of December 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 1,768,163 98.0 % $ 70.81
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 98.2 % 64.61
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,235,538 93.0 % 64.77
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,455 100.0 % 69.01
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 99.8 % 72.97
Prudential Center (retail shops) 3, 4 CBD Boston MA 1 594,771 97.3 % 86.08
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 55.17
The Hub on Causeway - Podium (50% ownership) 4, 5, 6 CBD Boston MA 1 382,497 98.3 % 61.14
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 78.14
Star Market at the Prudential Center 3 CBD Boston MA 1 57,236 100.0 % 59.77
Subtotal 10 7,800,740 97.8 % $ 68.90
145 Broadway 6 East Cambridge MA 1 488,862 98.5 % $ 85.82
355 Main Street East Cambridge MA 1 259,640 99.0 % 76.16
90 Broadway East Cambridge MA 1 223,771 100.0 % 72.44
255 Main Street East Cambridge MA 1 215,394 92.9 % 85.10
300 Binney Street East Cambridge MA 1 195,191 100.0 % 59.02
150 Broadway East Cambridge MA 1 177,226 100.0 % 82.09
105 Broadway East Cambridge MA 1 152,664 100.0 % 69.36
250 Binney Street East Cambridge MA 1 67,362 100.0 % 47.44
University Place Mid-Cambridge MA 1 195,282 100.0 % 54.12
Subtotal 9 1,975,392 98.7 % $ 74.12
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,136 81.0 % $ 44.64
Reservoir Place Route 128 Mass Turnpike MA 1 526,985 90.1 % 38.21
880 & 890 Winter Street Route 128 Mass Turnpike MA 2 392,576 78.5 % 41.71
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,991 99.4 % 51.63
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 57.10
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 92.7 % 40.47
230 CityPoint Route 128 Mass Turnpike MA 1 296,212 93.9 % 41.74
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 51.73
20 CityPoint 6 Route 128 Mass Turnpike MA 1 211,476 62.4 % 51.60
77 CityPoint Route 128 Mass Turnpike MA 1 209,712 95.4 % 50.16
200 West Street 6, 7 Route 128 Mass Turnpike MA 1 134,921 100.0 % 39.65
1265 Main Street (50% ownership) 5 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.87
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 45.05
195 West Street Route 128 Mass Turnpike MA 1 63,500 — % —
The Point 3 Route 128 Mass Turnpike MA 1 16,300 84.7 % 45.33
191 Spring Street Route 128 Northwest MA 1 170,997 100.0 % 45.46
Lexington Office Park Route 128 Northwest MA 2 166,779 67.4 % 31.59
201 Spring Street Route 128 Northwest MA 1 106,300 100.0 % 45.06
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 63.81
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.71
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 45.81
181 Spring Street Route 128 Northwest MA 1 55,793 100.0 % 44.01
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 44.99
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 48.17
Subtotal 31 5,088,768 88.6 % $ 45.45
Boston Office Total: 50 14,864,900 94.8 % $ 62.08
Residential
Hub50House (440 units) (50% ownership) 5, 6 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,258
Q4 2020
--- ---
In-service property listing (continued)

as of December 31, 2020

Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 54 15,773,418
LOS ANGELES
Office
Colorado Center (50% ownership) 5 West Los Angeles CA 6 1,128,600 93.6 % $ 71.26
Santa Monica Business Park (55% ownership) 5 West Los Angeles CA 14 1,102,722 93.7 % 60.56
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 81.72
Subtotal 27 2,305,726 93.5 % $ 66.47
Los Angeles Total: 27 2,305,726 93.5 % $ 66.47
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) 4 Plaza District NY 1 1,957,768 89.3 % $ 161.94
399 Park Avenue Park Avenue NY 1 1,576,437 90.4 % 103.43
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,445,155 97.6 % 102.13
599 Lexington Avenue Park Avenue NY 1 1,062,708 99.3 % 92.96
Times Square Tower (55% ownership) Times Square NY 1 1,241,443 94.7 % 77.27
250 West 55th Street Times Square / West Side NY 1 966,979 99.4 % 96.59
Dock 72 (50% ownership) 5, 6 Brooklyn NY 1 668,625 33.1 % 48.50
510 Madison Avenue Fifth/Madison Avenue NY 1 355,083 98.4 % 142.10
Subtotal 8 9,274,198 90.0 % $ 109.83
510 Carnegie Center Princeton NJ 1 234,160 — % $ —
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 35.17
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.31
212 Carnegie Center Princeton NJ 1 151,355 76.6 % 36.37
214 Carnegie Center Princeton NJ 1 146,979 43.2 % 46.25
506 Carnegie Center Princeton NJ 1 138,616 80.5 % 36.89
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 41.37
202 Carnegie Center Princeton NJ 1 134,068 91.2 % 40.63
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 39.63
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 33.57
101 Carnegie Center Princeton NJ 1 121,620 100.0 % 38.23
502 Carnegie Center Princeton NJ 1 121,460 100.0 % 37.55
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 42.81
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 38.75
103 Carnegie Center Princeton NJ 1 96,332 68.5 % 32.73
105 Carnegie Center Princeton NJ 1 69,955 56.3 % 35.52
302 Carnegie Center Princeton NJ 1 64,926 89.3 % 35.47
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 38.06
201 Carnegie Center Princeton NJ — 6,500 100.0 % 38.84
Subtotal 18 2,263,580 76.6 % $ 38.07
New York Total: 26 11,537,778 87.4 % $ 97.49
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 102.74
Embarcadero Center Four CBD San Francisco CA 1 941,138 96.2 % 80.63
Embarcadero Center One CBD San Francisco CA 1 822,264 89.4 % 76.68
Embarcadero Center Two CBD San Francisco CA 1 799,366 90.7 % 78.79
Embarcadero Center Three CBD San Francisco CA 1 786,078 91.5 % 76.19
Q4 2020
--- ---
In-service property listing (continued)

as of December 31, 2020

Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 69.26
535 Mission Street CBD San Francisco CA 1 307,235 95.7 % 85.34
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 63.63
Subtotal 9 5,627,636 95.0 % $ 84.20
Gateway Commons (55% ownership) 5, 6, 8 South San Francisco CA 6 1,070,388 82.0 % $ 53.26
Mountain View Research Park Mountain View CA 15 542,264 76.3 % 69.16
2440 West El Camino Real Mountain View CA 1 141,392 87.2 % 84.58
453 Ravendale Drive Mountain View CA 1 29,620 60.8 % 49.68
3625-3635 Peterson Way 9 Santa Clara CA 1 218,366 100.0 % 24.17
North First Business Park 9 San Jose CA 5 190,636 61.9 % 27.15
Subtotal 29 2,192,666 80.7 % $ 53.80
San Francisco Office Total: 38 7,820,302 91.0 % $ 76.63
Residential
The Skylyne (402 units) 6 CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 39 8,151,298
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 5 East End Washington DC 1 654,145 62.2 % $ 68.73
901 New York Avenue (25% ownership) 5 East End Washington DC 1 541,990 74.6 % 68.18
601 Massachusetts Avenue East End Washington DC 1 478,818 97.3 % 85.22
Market Square North (50% ownership) 5 East End Washington DC 1 417,979 78.8 % 69.78
2200 Pennsylvania Avenue CBD Washington DC 1 458,831 97.8 % 97.88
1330 Connecticut Avenue CBD Washington DC 1 253,941 89.4 % 72.44
Sumner Square CBD Washington DC 1 209,556 97.0 % 55.27
500 North Capitol Street, N.W. (30% ownership) 5 Capitol Hill Washington DC 1 230,900 98.5 % 80.22
Capital Gallery 6, 8 Southwest Washington DC 1 176,078 86.7 % 55.43
Subtotal 9 3,422,238 83.7 % $ 75.38
South of Market Reston VA 3 623,250 76.5 % $ 54.94
Fountain Square Reston VA 2 505,458 80.7 % 53.99
One Freedom Square Reston VA 1 430,640 64.1 % 51.78
Two Freedom Square Reston VA 1 421,865 100.0 % 46.72
One and Two Discovery Square Reston VA 2 366,989 100.0 % 50.81
One Reston Overlook Reston VA 1 319,519 100.0 % 44.93
17Fifty Presidents Street 6 Reston VA 1 275,809 100.0 % 59.13
Reston Corporate Center Reston VA 2 261,046 100.0 % 44.17
Democracy Tower Reston VA 1 259,441 98.4 % 58.80
Fountain Square Retail 3 Reston VA 1 216,591 86.0 % 37.37
Two Reston Overlook Reston VA 1 134,615 — % —
Subtotal 16 3,815,223 85.1 % $ 50.81
Wisconsin Place Office Montgomery County MD 1 299,217 82.3 % $ 58.91
Kingstowne Two Springfield VA 1 155,995 70.2 % 37.50
Kingstowne One Springfield VA 1 150,957 93.0 % 39.08
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 32.77
7435 Boston Boulevard Springfield VA 1 103,557 83.4 % 24.46
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail 3 Springfield VA 1 88,288 94.3 % 39.77
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.30
7501 Boston Boulevard Springfield VA 1 75,756 100.0 % 29.96
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 17.64
Q4 2020
--- ---
In-service property listing (continued)

as of December 31, 2020

Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 18.37
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.15
7451 Boston Boulevard Springfield VA 1 45,615 67.4 % 27.98
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 23.18
7375 Boston Boulevard Springfield VA 1 26,865 100.0 % 28.52
Annapolis Junction Building Seven (50% ownership) 5 Anne Arundel County MD 1 127,229 100.0 % 35.84
Annapolis Junction Building Six (50% ownership) 5 Anne Arundel County MD 1 119,339 75.2 % 32.09
Subtotal 17 1,674,112 84.1 % $ 35.29
Washington, DC Office Total: 42 8,911,573 84.4 % $ 57.22
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: 44 9,784,730
Total In-Service Properties: 190 47,552,950 90.1 % 10 $ 72.67 10

_____________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

3This is a retail property.

4Includes 157,961 square feet at Prudential Center (retail shops), 66,806 square feet at The Hub on Causeway - Podium and 30,094 square feet at 767 Fifth Avenue (The GM building) of leases terminated by the Company where the tenant is still occupying the space.

5This is an unconsolidated joint venture property.

6Not included in the Same Property analysis.

7A portion of this property is under redevelopment. For additional detail, see page 17.

8For additional detail, see page 16.

9Property held for redevelopment.

10Excludes Hotel and Residential properties. For additional detail, see pages 21-22.

Q4 2020
Top 20 tenants listing and portfolio tenant diversification

as of December 31, 2020

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.56 % 11.1
2 Arnold & Porter Kaye Scholer 2.83 % 12.9
3 Akamai Technologies 2.24 % 13.8
4 Biogen 1.82 % 5.9
5 Shearman & Sterling 1.62 % 12.9
6 Kirkland & Ellis 1.56 % 16.4
7 Google 1.49 % 15.5
8 Ropes & Gray 1.40 % 9.6
9 WeWork 1.32 % 12.6
10 Weil Gotshal & Manges 1.22 % 13.4
11 US Government 1.15 % 4.9
12 Microsoft 1.13 % 10.1
13 Wellington Management 1.10 % 6.6
14 Aramis (Estee Lauder) 0.98 % 16.8
15 Morrison & Foerster 0.91 % 9.5
16 O’Melveny & Myers 0.88 % 3.9
17 Millennium Management 0.87 % 10.0
18 Bank of America 0.85 % 15.0
19 Mass Financial Services 0.85 % 7.2
20 Under Armour 0.81 % 13.3
BXP’s Share of Annualized Rental Obligations 28.60 %
BXP’s Share of Square Feet 1 23.14 %
Weighted Average Remaining Lease Term (years) 11.4

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
Marriott International 7750 Wisconsin Avenue 734,000
Fannie Mae Reston Next (formerly Reston Gateway) 703,000
Verizon 100 Causeway Street 440,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 287,000
Volkswagen Group of America Reston Next (formerly Reston Gateway) 196,000
Microsoft Two Freedom Square 162,000
Translate Bio 200 West Street 138,000

TENANT DIVERSIFICATION 1

chart-b9c4c0f3ced34324bae1a.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

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

Q4 2020
Occupancy by location

as of December 31, 2020

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

CBD Suburban Total
Location 31-Dec-20 30-Sep-20 31-Dec-20 30-Sep-20 31-Dec-20 30-Sep-20
Boston 98.0 % 98.3 % 88.6 % 87.4 % 94.8 % 94.6 %
Los Angeles 93.5 % 96.7 % — % — % 93.5 % 96.7 %
New York 90.0 % 94.2 % 76.6 % 76.5 % 87.4 % 90.5 %
San Francisco 95.0 % 95.8 % 80.7 % 80.8 % 91.0 % 91.6 %
Washington, DC 83.7 % 84.6 % 84.8 % 84.1 % 84.4 % 84.3 %
Total Portfolio 93.1 % 94.9 % 84.2 % 83.6 % 90.1 % 91.1 %

chart-62b9e788f119406fb951a.jpg

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

CBD Suburban Total
Location 31-Dec-20 31-Dec-19 31-Dec-20 31-Dec-19 31-Dec-20 31-Dec-19
Boston 98.0 % 98.7 % 89.7 % 90.8 % 95.0 % 95.9 %
Los Angeles 93.5 % 96.7 % — % — % 93.5 % 96.7 %
New York 94.4 % 94.4 % 76.6 % 87.0 % 90.7 % 92.9 %
San Francisco 95.0 % 97.2 % 79.4 % 90.0 % 92.4 % 96.0 %
Washington, DC 83.6 % 83.2 % 84.0 % 90.2 % 83.9 % 87.5 %
Total Portfolio 94.3 % 95.2 % 84.4 % 89.9 % 91.2 % 93.5 %

chart-cb5d3079a86d45d9a311a.jpg

_____________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

Q4 2020
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 2,931,986
Unsecured Line of Credit —
Unsecured Term Loan 500,000
Unsecured Senior Notes, at face value 9,700,000
Outstanding Principal 13,131,986
Discount on Unsecured Senior Notes (16,034)
Deferred Financing Costs, Net (68,194)
Consolidated Debt $ 13,047,758

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
University Place August 1, 2021 6.99% 6.94% $ 1,500
601 Lexington Avenue (55% ownership) April 10, 2022 4.79% 4.75% 630,486
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 2,931,986

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10 Year Unsecured Senior Notes 2 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
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
$ 9,700,000

CAPITALIZATION

Shares/Units Common Stock Equivalent
Outstanding Equivalents Value 3
Common Stock 155,719 155,719 $ 14,720,117
Common Operating Partnership Units 17,373 17,373 1,642,270
5.25% Series B Cumulative Redeemable Preferred Stock (callable on or after March 27, 2018) 80 — 200,000
Total Equity 173,092 $ 16,562,387
Consolidated Debt (A) $ 13,047,758
Add: BXP’s share of unconsolidated joint venture debt 4 1,153,628
Less: Partners’ share of consolidated debt 5 1,194,619
BXP’s Share of Debt 6 (B) $ 13,006,767
Consolidated Market Capitalization (C) $ 29,610,145
BXP’s Share of Market Capitalization 6 (D) $ 29,569,154
Consolidated Debt/Consolidated Market Capitalization (A÷C) 44.07 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 6 (B÷D) 43.99 %

_____________

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

2 On January 15, 2021, a redemption notice was issued. These bonds will be redeemed in full at par plus accrued and unpaid interest on February 14, 2021.

3Values based on December 31, 2020 closing price of $94.53 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.

4Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 36.

5Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 34.

6See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

Q4 2020
Debt analysis 1

as of December 31, 2020

(dollars in thousands)

chart-df76323415844a5a9ca1a.jpg

2021 2 2022 2023 2024 2025 2026 2027 2028 2029 Thereafter

UNSECURED CREDIT FACILITY - MATURES APRIL 24, 2022

Facility Outstanding at December 31, 2020 Letters of Credit Remaining Capacity at December 31, 2020
Unsecured Line of Credit $ 1,500,000 $ — $ 2,457 $ 1,497,543
Unsecured Term Loan $ 500,000 $ 500,000 N/A $ —

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 3 Maturity (years)
Unsecured Debt 77.70 % 3.50 % 3.58 % 5.4
Secured Debt 22.30 % 3.72 % 3.89 % 5.3
Consolidated Debt 100.00 % 3.55 % 3.65 % 5.4

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 3 Maturity (years)
Floating Rate Debt 3.83 % 1.10 % 1.19 % 1.3
Fixed Rate Debt 96.17 % 3.65 % 3.75 % 5.5
Consolidated Debt 100.00 % 3.55 % 3.65 % 5.4

_____________

1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 36.

2 On January 15, 2021, a redemption notice was issued. These bonds will be redeemed in full at par plus accrued and unpaid interest on February 14, 2021.

3The 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.

Q4 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 December 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% 46.6 % 43.7 %
Secured Debt/Total Assets Less than 50% 14.0 % 13.1 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.28 3.28
Unencumbered Assets/ Unsecured Debt Greater than 150% 230.7 % 252.7 %

_____________

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

Q4 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-Dec-20 30-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 89,854
Add:
Preferred dividends 2,625 2,625
Noncontrolling interest - common units of the Operating Partnership 990 10,020
Noncontrolling interest in property partnerships 13,980 15,561
Net income 24,905 118,060
Add:
Interest expense 111,991 110,993
Depreciation and amortization expense 168,013 166,456
Less:
Gains (losses) on sales of real estate 5,259 (209)
Loss from unconsolidated joint ventures (79,700) (6,873)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 13,900 24,851
EBITDAre 1 393,250 427,442
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 40,591 42,154
BXP’s Share of EBITDAre 1 (A) 352,659 385,288
Add:
Stock-based compensation expense 7,990 8,253
BXP’s Share of straight-line ground rent expense adjustment 1 1,216 940
BXP’s Share of lease transaction costs that qualify as rent inducements 1 2,580 2,965
Less:
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 (11) 828
BXP’s Share of straight-line rent 1 (465) 40,478
BXP’s Share of fair value lease revenue 1 1,598 979
BXP’s Share of EBITDAre – cash 1 $ 363,323 $ 355,161
BXP’s Share of EBITDAre (Annualized) 4, 5 (A x 4) $ 1,410,636 $ 1,541,152

Reconciliation of BXP’s Share of Net Debt 1

31-Dec-20 30-Sep-20
Consolidated debt $ 13,047,758 $ 13,048,161
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 1,668,742 1,714,783
Cash held in escrow for 1031 exchange — —
Net debt 1 11,379,016 11,333,378
Add:
BXP’s share of unconsolidated joint venture debt 2 1,153,628 1,114,031
Partners’ share of cash and cash equivalents from consolidated joint ventures 146,234 116,295
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 94,361 87,628
Partners’ share of consolidated joint venture debt 3 1,194,619 1,195,957
BXP’s Share of Net Debt 1 (B) $ 11,389,898 $ 11,280,119
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 5 8.07 7.32

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended December 31, 2020, see pages 36 and 64.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended December 31, 2020, see pages 34 and 62.

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

5Includes $158,964 (which is $39,741 annualized) and $23,724 (which is $5,931 annualized) for the three months ended December 31, 2020 and September 30, 2020, respectively, of write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x and 7.21x for the three months ended December 31, 2020 and September 30, 2020, respectively.

Q4 2020
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Dec-20 30-Sep-20
BXP’s Share of interest expense 1 $ 113,210 $ 111,544
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 4,212 3,823
Adjusted interest expense excluding capitalized interest (A) 107,552 106,275
Add:
BXP’s Share of capitalized interest 1 12,052 13,255
Adjusted interest expense including capitalized interest (B) $ 119,604 $ 119,530
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 363,323 $ 355,161
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.38 3.34
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.04 2.97

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Dec-20 30-Sep-20
BXP’s Share of interest expense 1 $ 113,210 $ 111,544
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 4,212 3,823
Add:
BXP’s Share of capitalized interest 1 12,052 13,255
BXP’s Share of maintenance capital expenditures 1 26,730 21,722
Hotel improvements, equipment upgrades and replacements 33 69
Preferred dividends/distributions 2,625 2,625
Total Fixed Charges (A) $ 148,992 $ 143,946
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 363,323 $ 355,161
Fixed Charge Coverage Ratio (B÷A) 2.44 2.47

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a qualitative reconciliation of BXP’s Share of EBITDAre – cash, see page 32.

d

Q4 2020
Consolidated joint ventures

as of December 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 $ 3,201,829 $ 2,274,298 $ 5,476,127
Cash and cash equivalents 141,115 199,528 340,643
Other assets 289,044 329,513 618,557
Total assets $ 3,631,988 $ 2,803,339 $ 6,435,327
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,277,484 $ 630,068 $ 2,907,552
Other liabilities 123,394 88,119 211,513
Total liabilities 2,400,878 718,187 3,119,065
Equity:
Boston Properties, Inc. 740,208 849,004 1,589,212
Noncontrolling interests 490,902 1,236,148 1,727,050 2
Total equity 1,231,110 2,085,152 3,316,262
Total liabilities and equity $ 3,631,988 $ 2,803,339 $ 6,435,327
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 56,446 $ 89,788 $ 146,234
Partners’ share of consolidated debt 3, 4 $ 911,088 $ 283,531 $ 1,194,619

_____________

1Certain balances contain amounts that eliminate in consolidation.

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

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

4Amounts adjusted for basis differentials.

Q4 2020
Consolidated joint ventures (continued)

for the three months ended December 31, 2020

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS1

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 2 $ 62,671 $ 87,499 $ 150,170
Write-offs associated with accounts receivable — (3) (3)
Straight-line rent 10,941 3,491 14,432
Write-offs associated with straight-line rent — (103) (103)
Fair value lease revenue (899) 109 (790)
Termination income (19) 229 210
Total lease revenue 72,694 91,222 163,916
Parking and other — 913 913
Total rental revenue 3 72,694 92,135 164,829
Expenses
Operating 31,578 35,050 66,628
Net Operating Income (NOI) 41,116 57,085 98,201
Other income (expense)
Interest and other income 2 95 97
Interest expense (21,394) (4,770) (26,164)
Depreciation and amortization expense (15,532) (20,704) (36,236)
General and administrative expense (2) (118) (120)
Total other income (expense) (36,926) (25,497) (62,423)
Net income $ 4,190 $ 31,588 $ 35,778

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 $ 4,190 $ 31,588 $ 35,778
Add: Depreciation and amortization expense 15,532 20,704 36,236
Entity FFO $ 19,722 $ 52,292 $ 72,014
Partners’ NCI 4 $ 749 $ 13,231 $ 13,980
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 6,474 9,436 15,910
Partners’ share FFO 4 $ 7,223 $ 22,667 $ 29,890
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 3,441 $ 18,357 $ 21,798
Depreciation and amortization expense - BXP’s basis difference 43 408 451
BXP’s share of depreciation and amortization expense 9,015 10,860 19,875
BXP’s share of FFO $ 12,499 $ 29,625 $ 42,124

_____________

1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional, detail, see page 60.

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

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

4Amounts 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.

Q4 2020
Unconsolidated joint ventures 1

as of December 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 % $ 122 $ — — — % — %
Santa Monica Business Park 55.00 % 145,761 163,683 July 19, 2025 4.06 % 4.24 %
Platform 16 55.00 % 108,393 — — — % — %
Gateway Commons 50.00 % 336,206 — — — % — %
Colorado Center 50.00 % 227,671 274,660 August 9, 2027 3.56 % 3.58 %
Dock 72 4, 5 50.00 % 31,382 97,391 December 18, 2023 2.63 % 2.85 %
The Hub on Causeway 50.00 % — — — — % — %
Podium 50.00 % 48,818 86,821 September 6, 2021 2.40 % 2.89 %
Hub50House 50.00 % 50,943 85,284 April 19, 2022 2.15 % 2.43 %
100 Causeway Street 50.00 % 56,312 107,158 September 5, 2023 1.65 % 1.86 %
Hotel Air Rights 50.00 % 10,754 — — — % — %
1001 6th Street 50.00 % 42,499 — — — % — %
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 58,112 80,307 April 26, 2023 1.40 % 1.94 %
Beach Cities Media Center 50.00 % 27,184 — — — % — %
Annapolis Junction 50.00 % 13,463 — — — % — %
Annapolis Junction Building Six 50.00 % — 5,972 November 16, 2021 2.71 % 3.12 %
Annapolis Junction Building Seven 50.00 % — 9,203 March 25, 2021 2.60 % 2.95 %
1265 Main Street 50.00 % 3,787 18,514 January 1, 2032 3.77 % 3.84 %
Market Square North 50.00 % (3,766) 61,999 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 35,297 — — — % — %
500 North Capitol Street, N.W. 30.00 % (6,945) 31,457 June 6, 2023 4.15 % 4.20 %
3 Hudson Boulevard 6 25.00 % 113,774 19,960 July 13, 2023 3.64 % 3.72 %
901 New York Avenue 25.00 % (12,264) 55,102 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (13,584) 56,117 July 7, 2022 5.40 % 6.90 %
1,273,919
Investments with deficit balances reflected within Other Liabilities 36,559
Investment in Joint Ventures $ 1,310,478
Mortgage/Construction Loans Payable, Net $ 1,153,628

chart-bbb9a8301a9b4cf38c71a.jpg

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 52.90 % 2.50 % 2.92 % 2.3
Fixed Rate Debt 47.10 % 3.76 % 3.83 % 5.6
Total Debt 100.00 % 3.09 % 3.35 % 3.8
Q4 2020
--- ---
Unconsolidated joint ventures (continued) 1

_____________

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

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

3The property was sold on June 27, 2019.

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

5 The Company recognized a $60.5 million non-cash impairment charge during the fourth quarter of 2020. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

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

Q4 2020
Unconsolidated joint ventures (continued)

for the three months ended December 31, 2020

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Market Square North Metropolitan<br> Square 901 New York Avenue Annapolis Junction Dock 72 Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons Other Joint Ventures 2 Total Unconsolidated Joint Ventures
Revenue
Lease 3 $ 4,913 $ 5,270 $ 6,088 $ 1,962 $ 96 $ 18,472 $ 13,616 $ 6,309 $ 11,460 $ 6,170 $ 74,356
Write-offs associated with accounts receivable — — — — — — — (83) — — (83)
Straight-line rent 374 1,442 520 38 3,389 673 1,846 2,868 393 (125) 11,418
Write-offs associated with straight-line rent — (27,075) — — (15,190) — — (1,217) — — (43,482)
Fair value lease revenue — — — — — 9 824 — 49 — 882
Termination income — — — — — 870 — — — — 870
Total lease revenue 5,287 (20,363) 6,608 2,000 (11,705) 20,024 16,286 7,877 11,902 6,045 43,961
Parking and other 209 167 192 — 8 1,238 1,220 10 1 512 3,557
Total rental revenue 4 5,496 (20,196) 6,800 2,000 (11,697) 21,262 17,506 7,887 11,903 6,557 47,518
Expenses
Operating 2,301 3,227 3,467 706 3,178 5,443 6,788 4,329 4,593 3,449 37,481
Net operating income 3,195 (23,423) 3,333 1,294 (14,875) 15,819 10,718 3,558 7,310 3,108 10,037
Other income/(expense)
Development and management services revenue — (8) 8 14 313 — — — (1) — 326
Interest and other income — — — — — — — 1,219 — 7 1,226
Interest expense (1,094) (5,161) (2,044) (230) (2,188) (5,033) (7,057) (2,391) — (1,483) (26,681)
Transaction costs (621) — — (66) (340) — — — — — (1,027)
Depreciation and amortization expense (1,173) (2,849) (1,553) (546) (2,561) (6,229) (8,491) (4,458) (6,120) (2,638) (36,618)
General and administrative expense (26) (23) (1) — — (39) (20) (14) (66) — (189)
Gain on sale of real estate — — — (8) — — — — — 25 17
Total other income/(expense) (2,914) (8,041) (3,590) (836) (4,776) (11,301) (15,568) (5,644) (6,187) (4,089) (62,946)
Net income/(loss) $ 281 $ (31,464) $ (257) $ 458 $ (19,651) $ 4,518 $ (4,850) $ (2,086) $ 1,123 $ (981) $ (52,909)
BXP’s economic ownership percentage 50 % 20 % 50 % 50 % 50 % 50 % 55 % 50 % 55 %
Q4 2020
--- ---
Unconsolidated joint ventures (continued) Reconciliation of BXP’s share of Funds from Operations (FFO) Market Square North Metropolitan<br> Square 901 New York Avenue Annapolis Junction Dock 72 Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons Other Joint Ventures 2 Total Unconsolidated Joint Ventures
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
BXP’s share of net income/(loss) $ 141 $ (6,295) $ (66) 5 $ 229 $ (9,826) $ 2,259 $ (2,672) $ (1,043) $ 618 $ (455) $ (17,110)
Basis differential
Straight-line rent $ — $ — $ — $ — $ — $ 410 6 $ — $ — $ 8 $ — $ 418
Write-offs associated with straight-line rent — — — — — 39 — — — — 39
Fair value lease revenue — — — — — 429 6 — — (241) — 188
Termination income — — — — — 337 — — — — 337
Depreciation and amortization expense (43) 16 (26) (4) (53) (1,859) 10 (33) (1,043) (13) (3,048)
Gain on sale of real estate — — — — — — — — — — —
Impairment loss on investment 7 — — — — (60,524) — — — — — (60,524)
Total basis differential 8 (43) 16 (26) (4) (48,251) (644) 6 10 (33) (1,276) (13) (50,264)
Income/(loss) from unconsolidated joint ventures 98 (6,279) (92) 5 225 (70,403) 1,615 (2,662) (1,076) (658) (468) (79,700)
Add:
BXP’s share of depreciation and amortization expense 627 548 1,149 5 277 1,333 4,973 4,660 2,262 4,409 930 21,168
BXP’s share of impairment loss on investment — — — — 60,524 — — — — — 60,524
Less:
BXP’s share of gain on sale of real estate — — — (4) — — — — — 16 12
BXP’s share of FFO $ 725 $ (5,731) $ 1,057 $ 506 $ (8,546) $ 6,588 $ 1,998 $ 1,186 $ 3,751 $ 446 $ 1,980

_____________

1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 60.

2 Includes 1001 6th Street (50% ownership), 500 North Capitol Street, N.W. (30% ownership), 7750 Wisconsin Avenue (50% ownership), 1265 Main Street (50% ownership), Wisconsin Place Parking Facility (33% ownership), 3 Hudson Boulevard (25% ownership), 540 Madison Avenue (60% ownership), Platform 16 (55% ownership) and Beach Cities Media Center (50% ownership).

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

4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

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

7 Represents the other-than-temporary decline in the fair values below the carrying values of certain of the Company’s investments in unconsolidated joint ventures.

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

Q4 2020
Lease expirations - All in-service properties1, 2, 3, 5

as of December 31, 2020

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2020 466,850 17,325,050 56.58 0.82 % 4
2021 2,826,133 134,371,149 55.65 6.48 % 5
2022 2,634,739 143,913,266 62.64 6.17 %
2023 2,138,588 131,655,243 69.87 5.06 %
2024 3,624,391 202,224,824 62.87 8.64 %
2025 2,682,655 155,842,909 64.41 6.50 %
2026 3,566,257 205,253,276 73.82 7.47 %
2027 2,135,243 123,738,775 65.52 5.07 %
2028 2,329,649 151,377,211 71.69 5.67 %
2029 2,275,251 145,540,076 69.00 5.66 %
Thereafter 13,759,144 909,040,950 77.85 31.36 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2020 438 98,076 223.92 0.02 % 4
2021 404,959 15,189,254 41.22 16.75 % 5
2022 176,095 11,761,496 71.47 7.48 %
2023 157,289 9,866,398 64.29 6.97 %
2024 144,780 13,903,450 102.95 6.14 %
2025 177,931 9,649,889 58.54 7.49 %
2026 109,873 19,956,016 199.34 4.55 %
2027 85,640 11,538,695 143.56 3.65 %
2028 130,798 7,615,477 65.30 5.30 %
2029 122,277 9,265,623 93.87 4.49 %
Thereafter 601,674 60,078,036 135.52 20.15 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2020 467,288 17,423,126 56.82 0.78 % 4
2021 3,231,092 149,560,403 53.74 7.06 % 5
2022 2,810,834 155,674,762 63.23 6.24 %
2023 2,295,877 141,521,641 69.45 5.17 %
2024 3,769,171 216,128,274 64.48 8.50 %
2025 2,860,586 165,492,798 64.04 6.55 %
2026 3,676,130 225,209,292 78.18 7.30 %
2027 2,220,883 135,277,470 68.71 4.99 %
2028 2,460,447 158,992,688 71.35 5.65 %
2029 2,397,528 154,805,699 70.11 5.60 %
Thereafter 14,360,818 969,118,986 79.96 30.73 %

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021, the Company terminated leases for an aggregate of (A) 26,284 square feet of office space, of which BXP’s Share is 15,770 SF, and (B) 223,685 SF of retail space, of which BXP’s Share is 191,008 SF. BXP’s Share of current and future annualized rental obligations is (A) $2,113,317 for office space and (B) $7,463,887 for retail space for which the Company is not currently recognizing revenue.

Q4 2020
Lease expirations - Boston region in-service properties 1, 2, 3, 5

as of December 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 112,251 112,251 4
2021 695,018 682,662
2022 879,506 836,445
2023 792,744 733,343
2024 855,578 825,315
2025 1,081,332 1,064,817
2026 1,280,262 1,041,203
2027 675,153 667,353
2028 1,084,184 1,084,184
2029 722,793 626,814
Thereafter 4,781,552 4,259,607

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2020 438 438 4
2021 362,537 330,597 5
2022 50,946 45,028
2023 51,092 51,092
2024 80,177 80,177
2025 38,874 38,874
2026 25,508 25,508
2027 54,619 54,619
2028 43,452 43,452
2029 51,277 49,927
Thereafter 234,292 159,787

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 112,689 112,689 4
2021 1,057,555 1,013,259 5
2022 930,452 881,473
2023 843,836 784,435
2024 935,755 905,492
2025 1,120,206 1,103,691
2026 1,305,770 1,066,711
2027 729,772 721,972
2028 1,127,636 1,127,636
2029 774,070 676,741
Thereafter 5,015,844 4,419,394

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021, the Company terminated leases for an aggregate of 221,838 SF, of which BXP’s Share is 189,900 SF. BXP’s Share of current and future annualized rental obligations is $6,216,464 for which the Company is not currently recognizing revenue.

Q4 2020
Quarterly lease expirations - Boston region in-service properties 1, 2, 3, 5

as of December 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 — —
Q3 2020 — —
Q4 2020 112,251 112,251 4
Total 2020 112,251 112,251
Q1 2021 221,699 218,429
Q2 2021 289,726 289,726
Q3 2021 40,057 40,057
Q4 2021 143,536 134,450
Total 2021 695,018 682,662

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 — —
Q3 2020 — —
Q4 2020 438 438 4
Total 2020 438 438
Q1 2021 357,232 325,294 5
Q2 2021 1,725 1,725
Q3 2021 1,540 1,540
Q4 2021 2,040 2,038
Total 2021 362,537 330,597

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 — —
Q3 2020 — —
Q4 2020 112,689 112,689 4
Total 2020 112,689 112,689
Q1 2021 578,931 543,723 5
Q2 2021 291,451 291,451
Q3 2021 41,597 41,597
Q4 2021 145,576 136,488
Total 2021 1,057,555 1,013,259

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021, the Company terminated leases for an aggregate of 221,838 SF, of which BXP’s Share is 189,900 SF. BXP’s Share of current and future annualized rental obligations is $6,216,464 for which the Company is not currently recognizing revenue.

Q4 2020
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 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 41,666 21,457 4
2021 645,014 333,398
2022 37,612 20,263
2023 91,536 50,345
2024 128,688 70,778
2025 6,475 3,561
2026 457,294 251,512
2027 — —
2028 280,704 144,608
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 — —
2021 7,576 3,788
2022 — —
2023 1,405 703
2024 4,333 2,283
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
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 41,666 21,457 4
2021 652,590 337,186
2022 37,612 20,263
2023 92,941 51,048
2024 133,021 73,061
2025 23,693 12,942
2026 463,121 254,717
2027 — —
2028 280,704 144,608
2029 38,118 20,965
Thereafter 369,480 185,004

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

Q4 2020
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 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 — —
Q3 2020 — —
Q4 2020 41,666 21,457 4
Total 2020 41,666 21,457
Q1 2021 363,610 191,927
Q2 2021 4,964 2,730
Q3 2021 5,581 3,070
Q4 2021 270,859 135,671
Total 2021 645,014 333,398

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 — —
Q3 2020 — —
Q4 2020 — —
Total 2020 — —
Q1 2021 — —
Q2 2021 — —
Q3 2021 7,576 3,788
Q4 2021 — —
Total 2021 7,576 3,788

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 — —
Q3 2020 — —
Q4 2020 41,666 21,457 4
Total 2020 41,666 21,457
Q1 2021 363,610 191,927
Q2 2021 4,964 2,730
Q3 2021 13,157 6,858
Q4 2021 270,859 135,671
Total 2021 652,590 337,186

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

Q4 2020
Lease expirations - New York region in-service properties 1, 2, 3, 5

as of December 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 211,572 120,829 4, 5
2021 338,492 285,793
2022 626,270 525,217
2023 402,827 316,567
2024 1,279,553 1,039,651
2025 583,774 519,878
2026 707,329 513,802
2027 474,687 391,134
2028 271,207 249,161
2029 630,080 603,713
Thereafter 4,165,060 3,230,959

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 — —
2021 2,562 1,823 5
2022 27,093 27,022
2023 — —
2024 19,567 11,888
2025 — —
2026 23,438 19,320
2027 243 146
2028 — —
2029 3,135 3,135
Thereafter 239,614 176,049

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 211,572 120,829 4, 5
2021 341,054 287,616
2022 653,363 552,239
2023 402,827 316,567
2024 1,299,120 1,051,539
2025 583,774 519,878
2026 730,767 533,122
2027 474,930 391,280
2028 271,207 249,161
2029 633,215 606,848
Thereafter 4,404,674 3,407,008

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

2Includes partially placed in-service leased space.

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021 the Company terminated leases for an aggregate of (A) 26,284 square feet of office space, of which BXP’s Share is 15,770 SF, and (B) 1,847 SF of retail space, of which BXP’s Share is 1,108 SF. BXP’s Share of current and future annualized rental obligations (A) $2,133,317 for office space and (B) $1,247,423 for retail space for which the Company is not currently recognizing revenue.

Q4 2020
Quarterly lease expirations - New York region in-service properties 1, 2, 3, 5

as of December 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 — —
Q3 2020 — —
Q4 2020 211,572 120,829 4
Total 2020 211,572 120,829
Q1 2021 54,013 43,499 5
Q2 2021 106,522 89,605
Q3 2021 108,788 83,520
Q4 2021 69,169 69,169
Total 2021 338,492 285,793

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 — —
Q3 2020 — —
Q4 2020 — —
Total 2020 — —
Q1 2021 1,847 1,108 5
Q2 2021 715 715
Q3 2021 — —
Q4 2021 — —
Total 2021 2,562 1,823

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2020 — —
Q2 2020 — —
Q3 2020 — —
Q4 2020 211,572 120,829 4
Total 2020 211,572 120,829
Q1 2021 55,860 44,607 5
Q2 2021 107,237 90,320
Q3 2021 108,788 83,520
Q4 2021 69,169 69,169
Total 2021 341,054 287,616

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

2Includes partially placed in-service leased space.

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021 the Company terminated leases for an aggregate of (A) 26,284 square feet of office space, of which BXP’s Share is 15,770 SF, and (B) 1,847 SF of retail space, of which BXP’s Share is 1,108 SF. BXP’s Share of current and future annualized rental obligations (A) $2,133,317 for office space and (B) $1,247,423 for retail space for which the Company is not currently recognizing revenue.

Q4 2020
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 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 95,380 47,690 4
2021 749,733 725,906
2022 724,584 592,600
2023 608,126 550,949
2024 647,745 613,995
2025 473,342 463,598
2026 604,753 521,720
2027 380,008 376,685
2028 499,859 487,603
2029 259,888 241,604
Thereafter 1,772,859 1,756,493

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 — —
2021 6,538 6,538
2022 33,796 33,796
2023 38,176 38,176
2024 8,266 8,266
2025 31,271 31,271
2026 12,247 12,247
2027 9,260 9,260
2028 9,722 9,722
2029 9,944 9,944
Thereafter 41,285 39,887

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 95,380 47,690 44.53 4
2021 756,271 732,444
2022 758,380 626,396
2023 646,302 589,125
2024 656,011 622,261
2025 504,613 494,869
2026 617,000 533,967
2027 389,268 385,945
2028 509,581 497,325
2029 269,832 251,548
Thereafter 1,814,144 1,796,380

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

2Includes partially placed in-service leased space.

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

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

Q4 2020
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 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 — —
Q3 2020 — —
Q4 2020 95,380 47,690 4
Total 2020 95,380 47,690
Q1 2021 350,747 344,498
Q2 2021 50,858 49,838
Q3 2021 160,764 152,466
Q4 2021 187,364 179,105
Total 2021 749,733 725,906

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 — —
Q3 2020 — —
Q4 2020 — —
Total 2020 — —
Q1 2021 1,964 1,964
Q2 2021 738 738
Q3 2021 821 821
Q4 2021 3,015 3,015
Total 2021 6,538 6,538

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 — —
Q3 2020 — —
Q4 2020 95,380 47,690 4
Total 2020 95,380 47,690
Q1 2021 352,711 346,462
Q2 2021 51,596 50,576
Q3 2021 161,585 153,287
Q4 2021 190,379 182,120
Total 2021 756,271 732,444

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

2Includes partially placed in-service leased space.

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

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

Q4 2020
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 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 5,981 3,976 4
2021 397,876 386,865
2022 366,767 323,077
2023 243,355 233,050
2024 712,827 667,065
2025 537,732 367,582
2026 516,619 452,253
2027 605,395 453,378
2028 193,695 146,096
2029 662,490 637,159
Thereafter 2,693,469 2,256,777

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 — —
2021 25,746 25,746
2022 64,260 58,714
2023 66,616 63,495
2024 32,437 32,437
2025 90,568 85,309
2026 42,853 39,829
2027 21,518 16,348
2028 77,624 63,440
2029 19,803 14,731
Thereafter 63,207 55,699

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 5,981 3,976 4
2021 423,622 412,611
2022 431,027 381,791
2023 309,971 296,545
2024 745,264 699,502
2025 628,300 452,891
2026 559,472 492,082
2027 626,913 469,726
2028 271,319 209,536
2029 682,293 651,890
Thereafter 2,756,676 2,312,476

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

Q4 2020
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 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 — —
Q3 2020 — —
Q4 2020 5,981 3,976 4
Total 2020 5,981 3,976
Q1 2021 103,330 100,457
Q2 2021 71,788 66,899
Q3 2021 65,270 62,022
Q4 2021 157,488 157,488
Total 2021 397,876 386,865

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 — —
Q3 2020 — —
Q4 2020 — —
Total 2020 — —
Q1 2021 8,681 8,681
Q2 2021 6,677 6,677
Q3 2021 4,491 4,491
Q4 2021 5,897 5,897
Total 2021 25,746 25,746

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 — —
Q3 2020 — —
Q4 2020 5,981 3,976 4
Total 2020 5,981 3,976
Q1 2021 112,011 109,138
Q2 2021 78,465 73,576
Q3 2021 69,761 66,513
Q4 2021 163,385 163,385
Total 2021 423,622 412,611

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

Q4 2020
Lease expirations - CBD properties 1, 2, 3, 5

as of December 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 85,170 85,170 4
2021 577,832 533,536 5
2022 265,005 216,026
2023 475,294 415,893
2024 467,268 437,005
2025 344,443 327,928
2026 1,077,631 838,572
2027 390,245 382,445
2028 923,818 923,818
2029 483,498 386,169
Thereafter 4,371,205 3,832,239

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 41,666 21,457 4
2021 652,590 337,186
2022 37,612 20,263
2023 92,941 51,047
2024 133,021 73,062
2025 23,693 12,943
2026 463,121 254,717
2027 — —
2028 280,704 144,608
2029 38,118 20,965
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 202,755 112,012 4
2021 258,275 204,838 5
2022 540,412 439,287
2023 355,160 268,900
2024 815,061 567,480
2025 360,347 296,451
2026 515,021 317,376
2027 255,424 171,774
2028 216,656 194,610
2029 586,449 560,082
Thereafter 4,177,157 3,179,491

All values are in US Dollars.

Q4 2020
Lease expirations - CBD properties (continued) 1, 2, 3, 5

as of December 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 — —
2021 279,369 279,369
2022 424,833 424,833
2023 390,269 390,269
2024 535,983 535,983
2025 314,822 314,822
2026 450,934 450,934
2027 350,361 350,361
2028 485,069 485,069
2029 233,264 233,264
Thereafter 1,778,614 1,778,614

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 2,674 669 4
2021 33,278 22,267
2022 141,443 92,207
2023 51,216 37,790
2024 179,624 163,032
2025 172,610 60,816
2026 344,762 277,373
2027 209,279 67,795
2028 196,742 134,959
2029 59,730 29,327
Thereafter 1,446,811 1,002,611

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

5Rentable square footage subject to expiring leases include leases terminated by the Company where the tenant is still occupying the space. In 2021, the Company terminated leases for an aggregate of (A) 221,838 square feet of space in Boston, of which BXP’s Share is 189,900 SF and (B) 28,131 SF of space in New York of which BXP’s Share is 16,879 SF. BXP’s Share of current and future annualized rental obligations is (A) $6,216,464 for Boston and (B) $3,380,740 for New York for which the Company is not currently recognizing revenue..

Q4 2020
Lease expirations - Suburban properties 1, 2, 3

as of December 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 27,519 27,519 4
2021 479,723 479,723
2022 665,447 665,447
2023 368,542 368,542
2024 468,487 468,487
2025 775,763 775,763
2026 228,139 228,139
2027 339,527 339,527
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 8,817 8,817 4
2021 82,779 82,779
2022 112,951 112,951
2023 47,667 47,667
2024 484,059 484,059
2025 223,427 223,427
2026 215,746 215,746
2027 219,506 219,506
2028 54,551 54,551
2029 46,766 46,766
Thereafter 227,517 227,517

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 95,380 47,690 4
2021 476,902 453,075
2022 333,547 201,563
2023 256,033 198,856
2024 120,028 86,278
2025 189,791 180,047
2026 166,066 83,033
2027 38,907 35,584
2028 24,512 12,256
2029 36,568 18,284
Thereafter 35,530 17,765

All values are in US Dollars.

Q4 2020
Lease expirations - Suburban properties (continued) 1, 2, 3

as of December 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 3,307 3,307 4
2021 390,344 390,344
2022 289,584 289,584
2023 258,755 258,755
2024 565,640 536,470
2025 455,690 392,076
2026 214,710 214,710
2027 417,634 401,932
2028 74,577 74,577
2029 622,563 622,563
Thereafter 1,309,865 1,309,865

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 56.

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

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

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

Q4 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 Thomson Reuters Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding the Company’s performance made by the analysts listed 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
Citi Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs & Company, Inc. 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 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
RW Baird David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Brent Dilts 212.713.1841
Wells Fargo Securities Blaine Heck 443.263.6529 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
Q4 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 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 60.

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 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 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.

Q4 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 (losses) on sales of real estate. EBITDAre is a non-GAAP financial measure. The Company uses EBITDAre internally as a performance measure and believes EBITDAre provides useful information to investors regarding its financial condition and results of operations at the corporate level because, when compared across periods, EBITDAre reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and acquisition and development activities on an unleveraged basis, providing perspective not immediately apparent from net (loss) income attributable to Boston Properties, Inc. common shareholders.

In some cases the Company also presents (A) BXP’s Share of EBITDAre – cash, which is BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue 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.

Q4 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.

Q4 2020
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 23 - 26 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

Q4 2020
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items

Three Months Ended
31-Dec-20 30-Sep-20
Revenue $ 665,089 $ 693,268
Partners’ share of revenue from consolidated joint ventures (JVs) (70,539) (71,467)
BXP’s share of revenue from unconsolidated JVs 31,422 42,910
BXP’s Share of revenue $ 625,972 $ 664,711
Straight-line rent $ 13,187 $ 46,713
Partners’ share of straight-line rent from consolidated JVs (5,901) (7,982)
BXP’s share of straight-line rent from unconsolidated JVs (7,751) 1,747
BXP’s Share of straight-line rent $ (465) $ 40,478
Write-offs associated with accrued rent (all of which was included within straight-line rent) $ (26,168) $ (4,098)
Partners’ share of write-offs associated with accrued rent from consolidated JVs (all of which was included within straight-line rent) 46 86
BXP’s share of write-offs associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent) (13,619) (1,919)
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) $ (39,741) $ (5,931)
Write-offs associated with accounts receivable (all of which was included within lease revenue) $ (294) $ (3,373)
Partners’ share of write-offs associated with accounts receivable (all of which was included within lease revenue) from consolidated JVs 2 120
BXP’s share of write-offs associated with accounts receivable (all of which was included within lease revenue) from unconsolidated JVs (41) (537)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) $ (333) $ (3,790)
Fair value lease revenue 1 $ 614 $ (662)
Partners’ share of fair value lease revenue from consolidated JVs 1 311 823
BXP’s share of fair value lease revenue from unconsolidated JVs 1 673 818
BXP’s Share of fair value lease revenue 2 $ 1,598 $ 979
Lease termination income $ 551 $ 3,406
Partners’ share of termination income from consolidated JVs (95) (556)
BXP’s share of termination income from unconsolidated JVs 771 —
BXP’s Share of termination income $ 1,227 $ 2,850
Non-cash termination income adjustment (fair value lease amounts) $ (19) $ 1,381
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs 8 (553)
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) $ (11) $ 828
Parking and other revenue $ 15,903 $ 16,327
Partners’ share of parking and other revenue from consolidated JVs (411) (414)
BXP’s share of parking and other revenue from unconsolidated JVs $ 1,710 $ 1,678
BXP’s Share of parking and other revenue $ 17,202 $ 17,591
Cash rent abatements and deferrals related to COVID-19 $ 17,060 $ 17,127
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs (1,027) (808)
BXP’s share of cash rent abatements and deferrals from unconsolidated JVs related to COVID-19 3,118 1,895
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 19,151 $ 18,214
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446
Q4 2020
--- ---
Reconciliations (continued)

BXP’s Share of select items (continued)

Three Months Ended
31-Dec-20 30-Sep-20
Straight-line ground rent expense adjustment $ 943 $ 897
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 273 43
BXP’s Share of straight-line ground rent expense adjustment $ 1,216 $ 940
Depreciation and amortization $ 168,013 $ 166,456
Noncontrolling interests in property partnerships’ share of depreciation and amortization (15,910) (15,833)
BXP’s share of depreciation and amortization from unconsolidated JVs 21,168 20,413
BXP’s Share of depreciation and amortization $ 173,271 $ 171,036
Lease transaction costs that qualify as rent inducements 2 $ 1,333 $ 3,966
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 2 (12) (873)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 2 1,259 (128)
BXP’s Share of lease transaction costs that qualify as rent inducements 2 $ 2,580 $ 2,965
2nd generation tenant improvements and leasing commissions $ 60,390 $ 67,075
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (856) (3,438)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 2,067 4,189
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 61,601 $ 67,826
Maintenance capital expenditures 3 $ 27,253 $ 22,003
Partners’ share of maintenance capital expenditures from consolidated JVs 3 (559) (459)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 3 36 178
BXP’s Share of maintenance capital expenditures 3 $ 26,730 $ 21,722
Interest expense $ 111,991 $ 110,993
Partners’ share of interest expense from consolidated JVs (10,701) (10,760)
BXP’s share of interest expense from unconsolidated JVs 11,920 11,311
BXP’s Share of interest expense $ 113,210 $ 111,544
Capitalized interest $ 12,552 $ 13,463
Partners’ share of capitalized interest from consolidated JVs (1,386) (1,348)
BXP’s share of capitalized interest from unconsolidated JVs 886 1,140
BXP’s Share of capitalized interest $ 12,052 $ 13,255
Amortization of financing costs $ 3,551 $ 3,485
Partners’ share of amortization of financing costs from consolidated JVs (382) (382)
BXP’s share of amortization of financing costs from unconsolidated JVs 1,043 720
BXP’s Share of amortization of financing costs $ 4,212 $ 3,823
Three Months Ended
31-Dec-19
Revenue $ 757,501
Partners’ share of revenue from consolidated joint ventures (JVs) (75,000)
BXP’s share of revenue from unconsolidated JVs 40,146
BXP’s Share of revenue $ 722,647

_____________

1Represents 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.

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

3Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

Q4 2020
Reconciliations (continued)

for the three months ended December 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 $ 62,671 $ 87,499 $ 150,170
Write-offs associated with accounts receivable — (3) (3)
Straight-line rent 10,941 3,491 14,432
Write-offs associated with straight-line rent — (103) (103)
Fair value lease revenue (899) 109 (790)
Termination income (19) 229 210
Total lease revenue 72,694 91,222 163,916
Parking and other — 913 913
Total rental revenue 2 72,694 92,135 164,829
Expenses
Operating 31,578 35,050 66,628
Net Operating Income (NOI) 41,116 57,085 98,201
Other income (expense)
Interest and other income 2 95 97
Interest expense (21,394) (4,770) (26,164)
Depreciation and amortization expense (15,532) (20,704) (36,236)
General and administrative expense (2) (118) (120)
Total other income (expense) (36,926) (25,497) (62,423)
Net income $ 4,190 $ 31,588 $ 35,778
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 15,778 $ 24,861 $ 40,639
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 25,338 $ 32,224 $ 57,562
Unearned portion of capitalized fees 4 $ 147 $ 557 $ 704
Partners’ share of select items 3
Partners’ share of write-offs associated with accounts receivable $ — $ 1 $ 1
Partners’ share of write-offs associated with straight-line rent $ — $ 46 $ 46
Partners’ share of parking and other revenue $ — $ 411 $ 411
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 $ 279 $ 302 $ 581
Partners’ share of capitalized interest $ — $ 1,386 $ 1,386
Partners’ share of non-cash termination income adjustment (fair value lease amounts) $ (8) $ — $ (8)
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (12) $ (12)
Partners’ share of management and other fees $ 669 $ 848 $ 1,517
Partners’ share of basis differential and other adjustments $ (17) $ (166) $ (183)
Reconciliation of Partners’ share of EBITDAre 3
Partners’ NCI $ 749 $ 13,231 $ 13,980
Add:
Partners’ share of interest expense after BXP’s basis differential 8,554 2,147 10,701
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,474 9,436 15,910
Partners’ share of EBITDAre $ 15,777 $ 24,814 $ 40,591
Q4 2020
--- ---
Reconciliations (continued)

for the three months ended December 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 Net Operating Income (Loss) (NOI) 3 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 2 $ 29,078 $ 41,461 $ 70,539
Less: Termination income (8) 103 95
Rental revenue (excluding termination income) 2 29,086 41,358 70,444
Less: Operating expenses (including partners’ share of management and other fees) 13,300 16,621 29,921
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 15,786 $ 24,758 $ 40,544
Rental revenue (excluding termination income) 2 $ 29,086 $ 41,358 $ 70,444
Less: Straight-line rent 4,376 1,525 5,901
Fair value lease revenue (360) 49 (311)
Add: Lease transaction costs that qualify as rent inducements — 12 12
Subtotal 25,070 39,796 64,866
Less: Operating expenses (including partners’ share of management and other fees) 13,300 16,621 29,921
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 11,770 $ 23,196 $ 34,966
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 29,078 $ 41,461 $ 70,539
Add: Development and management services revenue — — —
Revenue $ 29,078 $ 41,461 $ 70,539

_________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

4Capitalized fees are eliminated in consolidation and recognized over the life of the asset as depreciation and amortization are added back to the Company’s net income.

Q4 2020
Reconciliations (continued)

for the three months ended December 31, 2020

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES1

Market Square North Metropolitan Square 901 New York Avenue Annapolis Junction Dock 72 Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons Other Joint Ventures 2 Total Unconsolidated Joint Ventures
Revenue
Lease 3 $ 4,913 $ 5,270 $ 6,088 $ 1,962 $ 96 $ 18,472 $ 13,616 $ 6,309 $ 11,460 $ 6,170 $ 74,356
Write-offs associated with accounts receivable — — — — — — — (83) — — (83)
Straight-line rent 374 1,442 520 38 3,389 673 1,846 2,868 393 (125) 11,418
Write-offs associated with straight-line rent — (27,075) — — (15,190) — — (1,217) — — (43,482)
Fair value lease revenue — — — — — 9 824 — 49 — 882
Termination income — — — — — 870 — — — — 870
Total lease revenue 5,287 (20,363) 6,608 2,000 (11,705) 20,024 16,286 7,877 11,902 6,045 43,961
Parking and other 209 167 192 — 8 1,238 1,220 10 1 512 3,557
Total rental revenue 4 5,496 (20,196) 6,800 2,000 (11,697) 21,262 17,506 7,887 11,903 6,557 47,518
Expenses
Operating 2,301 3,227 3,467 706 3,178 5 5,443 6,788 4,329 4,593 3,449 37,481
Net operating income 3,195 (23,423) 3,333 1,294 (14,875) 15,819 10,718 3,558 7,310 3,108 10,037
Other income/(expense)
Development and management services revenue — (8) 8 14 313 — — — (1) — 326
Interest and other income — — — — — — — 1,219 — 7 1,226
Interest expense (1,094) (5,161) (2,044) (230) (2,188) (5,033) (7,057) (2,391) — (1,483) (26,681)
Depreciation and amortization expense (1,173) (2,849) (1,553) (546) (2,561) (6,229) (8,491) (4,458) (6,120) (2,638) (36,618)
General and administrative expense (26) (23) (1) — — (39) (20) (14) (66) — (189)
Gain on sale of real estate — — — (8) — — — — — 25 17
Total other income/(expense) (2,914) (8,041) (3,590) (836) (4,776) (11,301) (15,568) (5,644) (6,187) (4,089) (62,946)
Net income/(loss) $ 281 $ (31,464) $ (257) $ 458 $ (19,651) $ 4,518 $ (4,850) $ (2,086) $ 1,123 $ (981) $ (52,909)
BXP’s economic ownership percentage 50 % 20 % 50 % 50 % 50 % 50 % 55 % 50 % 55 %
BXP’s share of write-offs associated with accounts receivable $ — $ — $ — $ — $ — $ — $ — $ 42 $ — $ — $ 42
BXP’s share of write-offs associated with straight-line rent $ — $ 5,415 $ — $ — $ 7,595 $ — $ — $ 609 $ — $ — $ 13,619
BXP’s share of parking and other revenue $ 105 $ 33 $ 96 6 $ — $ 4 $ 619 $ 671 $ 5 $ 1 $ 176 $ 1,710
BXP’s share of amortization of financing costs $ 20 $ 245 $ 22 6 $ 14 $ 7 $ 13 $ 72 $ 193 $ — $ 457 $ 1,043
BXP’s share of capitalized interest $ — $ — $ — 6 $ — $ (4) $ — $ — $ 420 $ — $ 470 $ 886
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — 6 $ — $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ 98 $ (6,279) $ (92) 6 $ 225 $ (70,403) $ 1,615 $ (2,662) $ (1,076) $ (658) $ (468) $ (79,700)
Add:
BXP’s share of interest expense 547 1,032 1,022 6 115 1,094 2,517 3,881 1,196 — 516 11,920
BXP’s share of depreciation and amortization expense 627 548 1,149 6 277 1,333 4,973 7 4,660 2,262 4,409 930 21,168
BXP’s share of impairment loss on investment 8 — — — — 60,524 — — — — — 60,524
Less:
BXP’s share of gain on sale of real estate — — — (4) — — — — — 16 12
BXP’s share of EBITDAre $ 1,272 $ (4,699) $ 2,079 6 $ 621 $ (7,452) $ 9,105 $ 5,879 $ 2,382 $ 3,751 $ 962 $ 13,900
Q4 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 Dock 72 Colorado Center Santa Monica Business Park The Hub on Causeway Gateway Commons Other Joint Ventures 2 Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 4 $ 2,748 $ (4,039) $ 3,400 6 $ 1,000 $ (5,849) $ 11,846 7 $ 9,628 $ 3,944 $ 6,314 $ 2,265 $ 31,257
BXP’s share of operating expenses 1,151 645 1,734 6 353 1,589 2,722 3,733 2,165 2,526 1,303 17,921
BXP’s share of net operating income/(loss) 1,597 (4,684) 1,666 6 647 (7,438) 9,124 5,895 1,779 3,788 962 13,336
Less:
BXP’s share of termination income — — — 6 — — 771 — — — — 771
BXP’s share of net operating income/(loss) (excluding termination income) 1,597 (4,684) 1,666 6 647 (7,438) 8,353 5,895 1,779 3,788 962 12,565
Less:
BXP’s share of straight-line rent 187 (5,127) 260 6 19 (5,901) 786 7 1,015 826 224 (40) (7,751)
BXP’s share of fair value lease revenue — — — 6 — — 434 7 453 — (214) — 673
Add:
BXP’s share of straight-line ground rent expense adjustment — — — 6 — 273 — — — — — 273
BXP’s share of lease transaction costs that qualify as rent inducements 102 221 12 6 — — — 33 — 891 — 1,259
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 1,512 $ 664 $ 1,418 6 $ 628 $ (1,264) $ 7,133 7 $ 4,460 $ 953 $ 4,669 $ 1,002 $ 21,175
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 5 $ 2,748 $ (4,039) $ 3,400 6 $ 1,000 $ (5,849) $ 11,846 7 $ 9,628 $ 3,944 $ 6,314 $ 2,265 $ 31,257
Add:
BXP’s share of development and management services revenue — (2) 4 6 7 157 — — — (1) — 165
BXP’s share of revenue $ 2,748 $ (4,041) $ 3,404 6 $ 1,007 $ (5,692) $ 11,846 7 $ 9,628 $ 3,944 $ 6,313 $ 2,265 $ 31,422

_____________

1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 60.

2 Includes 1001 6th Street (50% ownership), 500 North Capitol Street, N.W. (30% ownership), 7750 Wisconsin Avenue (50% ownership), 1265 Main Street (50% ownership), Wisconsin Place Parking Facility (33% ownership), 3 Hudson Boulevard (25% ownership), 540 Madison Avenue (60% ownership), Platform 16 (55% ownership) and Beach Cities Media Center (50% ownership).

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

4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

5 Includes approximately $545 of straight-line ground rent expense.

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 the other-than-temporary decline in the fair values below the carrying values of certain of the Company’s investments in unconsolidated joint ventures.

Q4 2020
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Dec-19
Revenue
Lease $ 706,349
Parking and other 26,727
Hotel revenue 11,793
Development and management services 10,473
Direct reimbursements of payroll and related costs from management services contracts 2,159
Total revenue 757,501
Expenses
Operating 131,246
Real estate taxes 136,911
Demolition costs 762
Hotel 8,318
General and administrative 32,797
Payroll and related costs from management services contracts 2,159
Transaction costs 569
Depreciation and amortization 169,897
Total expenses 482,659
Other income (expense)
Loss from unconsolidated joint ventures (936)
Losses on sales of real estate (57)
Gains from investments in securities 2,177
Interest and other income 4,393
Losses from early extinguishments of debt (1,530)
Interest expense (102,880)
Net income 176,009
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (16,338)
Noncontrolling interest - common units of the Operating Partnership (16,222)
Net income attributable to Boston Properties, Inc. 143,449
Preferred dividends (2,625)
Net income attributable to Boston Properties, Inc. common shareholders $ 140,824
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.91
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.91
Q4 2020
--- ---
Funds from operations (FFO) 1 - prior year

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

Three Months Ended
31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 140,824
Add:
Preferred dividends 2,625
Noncontrolling interest - common units of the Operating Partnership 16,222
Noncontrolling interests in property partnerships 16,338
Net income 176,009
Add:
Depreciation and amortization expense 169,897
Noncontrolling interests in property partnerships' share of depreciation and amortization (18,116)
BXP's share of depreciation and amortization from unconsolidated joint ventures 14,458
Corporate-related depreciation and amortization (477)
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures (32)
Gains (losses) on sales of real estate (57)
Noncontrolling interests in property partnerships 16,338
Preferred dividends 2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 322,897
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 32,960
FFO attributable to Boston Properties, Inc. common shareholders $ 289,937
Boston Properties, Inc.’s percentage share of Basic FFO 89.79 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.21 %
Basic FFO per share $ 1.87
Weighted average shares outstanding - basic 154,667
Diluted FFO per share $ 1.87
Weighted average shares outstanding - diluted 154,992

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

Q4 2020
Funds available for distributions (FAD) 1 - prior year

(unaudited and in thousands)

Three Months Ended
31-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders $ 140,824
Add:
Preferred dividends 2,625
Noncontrolling interest - common units of the Operating Partnership 16,222
Noncontrolling interests in property partnerships 16,338
Net income 176,009
Add:
Depreciation and amortization expense 169,897
Noncontrolling interests in property partnerships’ share of depreciation and amortization (18,116)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 14,458
Corporate-related depreciation and amortization (477)
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures (32)
Gains (losses) on sales of real estate (57)
Noncontrolling interests in property partnerships 16,338
Preferred dividends 2,625
Basic FFO 322,897
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 2 9,403
BXP’s Share of hedge amortization 1 1,435
Straight-line ground rent expense adjustment 3 1,056
Stock-based compensation 7,705
Non-real estate depreciation 477
Unearned portion of capitalized fees from consolidated joint ventures 1,300
Less:
BXP’s Share of straight-line rent 1 43,501
BXP’s Share of fair value lease revenue 1, 4 3,298
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 86,041
BXP’s Share of maintenance capital expenditures 1, 5 25,457
Hotel improvements, equipment upgrades and replacements 148
Funds available for distribution to common shareholders and common unitholders (FAD) (A) 185,828
Distributions to common shareholders and unitholders (excluding any special distributions) (B) 169,334
FAD Payout Ratio1 (B÷A) 91.12 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

3Includes 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.

4Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.

5Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

68

Document

Exhibit 99.2

bxplogohorizontalcolorrgba.jpg

BOSTON PROPERTIES ANNOUNCES FOURTH QUARTER 2020 RESULTS; REPORTS EPS OF $0.05 AND FFO PER SHARE OF $1.37

Signs 1.2 Million Square Feet of Leases in Q4 With an Average Lease Term of Eight Years

BOSTON, MA, January 26, 2021 - Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded developer, owner and manager of Class A office properties in the United States, reported results today for the fourth quarter and full year ended December 31, 2020.

Financial highlights for the fourth quarter include:

•Net income attributable to common shareholders of $7.3 million, or $0.05 per diluted share (EPS), compared to $140.8 million, or $0.91 per diluted share, for the quarter ended December 31, 2019.

–Net income in the fourth quarter of 2020 included a $0.35 per share non-cash impairment charge related to the Company’s investment in Dock 72, a 670,000 square-foot Class A office property in Brooklyn, New York in which the Company has a 50% interest. The property is 33% leased. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

–Net income in the fourth quarter also included a $0.22 per share non-cash charge to lease revenue related to the write-off of accrued rent of all tenants in the co-working sector. The Company will recognize lease revenue from tenants in the co-working sector on a cash basis commencing in Q1 2021.

•Funds from Operations (FFO) of $213.1 million, or $1.37 per diluted share, compared to FFO of $289.9 million, or $1.87 per diluted share, for the quarter ended December 31, 2019.

–FFO in the fourth quarter of 2020 included a $0.22 per share non-cash charge to lease revenue related to the write-off of accrued rent for all tenants in the co-working sector.

The Company provided guidance for the first quarter 2021 with projected EPS of $0.53 - $0.57 per diluted share and projected FFO of $1.53 - $1.57 per diluted share. See “EPS and FFO per Share Guidance” below.

Fourth quarter and recent business highlights include:

•Completed 1.2 million square feet of new leases and renewals in the fourth quarter with a weighted-average lease term of approximately eight years, marking the strongest leasing quarter since the beginning of the COVID-19 pandemic in the U.S. Notable leases signed in the quarter include:

–A 75,000 square-foot, seven-year new lease with a leading healthcare technology company, at 20 CityPoint in Waltham, Massachusetts. With this lease, the property is 100% leased.

–more–

–A 138,000 square-foot, 10-year lease with Translate Bio, a clinical-stage messenger RNA (mRNA) therapeutics company at 200 West Street in Waltham, Massachusetts, a property that the Company is currently redeveloping into lab space.

–A 20-year, 196,000 square foot lease with the Volkswagen Group of America at the Company’s 1.1 million square foot development in the new phase of Reston Town Center in Reston, Virginia.

•Collected 99.6% of total rent payments from office tenants in the fourth quarter. Rent collections from all commercial tenants, including base rent from retail tenants, were 99.0% in total in Q4.

•Recognized as the highest ranked office REIT on Newsweek’s America’s Most Responsible Companies 2021 list. BXP ranked second among all property companies, and 56th overall out of the 400 companies included on this year’s list.

•Earned a top ESG rating in the 2020 Global Real Estate Sustainability Benchmark (GRESB®) assessment. BXP earned a ninth consecutive “Green Star” recognition and the highest GRESB 5-star Rating, as well as an “A” disclosure score. The Company also achieved the highest scores in several categories, including: Data Monitoring & Review, Targets, Policies, Reporting and Leadership.

•During the quarter, the Company extended three mortgages including:

–A $250.0 million mortgage loan collateralized by Dock 72, a 670,000 square-foot Class A office property in Brooklyn, New York in which the Company has a 50% interest. The new loan matures on December 18, 2023.

–A $125.0 million mortgage loan collateralized by Market Square North, a 418,000 square foot Class A office property in Washington, DC, in which the Company has a 50% interest. The new loan matures on November 10, 2025.

–A $13.2 million mortgage loan collateralized by Annapolis Junction Building Six, a 119,000 square foot Class A office property in Annapolis, Maryland, in which the Company has a 50% interest. The loan matures on November 16, 2021.

Financial results for the year ended December 31, 2020 include:

•Net income attributable to common shareholders of $862.2 million, or $5.54 per diluted share (EPS), compared to $511.0 million, or $3.30 per diluted share, for FY 2019, primarily due to gains on asset sales in 2020.

•FFO of $978.2 million, or $6.29 per diluted share, compared to FFO of $1.1 billion, or $7.01 per diluted share, for the year ended December 31, 2019, primarily due to declines in retail, hotel and parking revenue related to COVID-19 and $0.53 per share related to the write-off of tenant accrued rent and accounts receivable balances.

Full year 2020 business highlights include:

•Signed 3.7 million square feet of leases during the year. In addition to leases highlighted in the fourth quarter, notable signed leases and expansions during the year include:

–Approximately 586,000 square feet of leases with Microsoft Corporation at Reston Town Center in Reston, Virginia.

–A new, 14-year, 82,000 square foot lease with Columbia Threadneedle Investments at Atlantic Wharf in Boston, Massachusetts.

–An expansion of an existing tenant in the social media sector by 80,000 square feet at Santa Monica Business Park in Santa Monica California, bringing the tenant's total to more than 400,000 square feet at the property.

–more–

•Completed and fully placed in-service 17Fifty Presidents Street in Reston, Virginia, a 276,000 square foot, build-to-suit, Class A office project that is 100% leased to an affiliate of Leidos Holdings, Inc.

•Completed and placed in-service 20 CityPoint, a 211,000 square foot, Class A office development in Waltham, Massachusetts that is 100% leased.

•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.

•Completed the acquisition of property at 759 Harrison Street and 777 Harrison Street in San Francisco, California for an aggregate purchase price of approximately $144.6 million. 759 Harrison Street and 777 Harrison Street, known as Fourth + Harrison, is a fully-entitled site that can support the development of approximately 850,000 square feet of primarily office space.

•Acquired a 50% interest in an existing joint venture that owns Beach Cities Media Campus, a 6.4-acre site on the Rosecrans Corridor in the El Segundo submarket of Los Angeles, California. The site is fully entitled to support the future development of approximately 275,000 square feet of Class A creative office space.

•Completed the sale of several properties and land parcels during the year for aggregate net proceeds of $537.7 million, including New Dominion Technology Park in Herndon, Virginia; approximately 455,000 square feet of Capital Gallery, in Washington, DC; Annapolis Junction Building Eight and two parcels of land at Annapolis Junction Business Park in Annapolis, Maryland and a land parcel in Marlborough, Massachusetts.

•Completed a $1.25 billion bond offering of 3.250% unsecured senior notes due 2031 on May 5, 2020.

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 and year ended December 31, 2020. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter 2021 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in this release and otherwise referenced during the conference call and in the Company’s Supplemental Operating and Financial Data for the quarter ended December 31, 2020. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, other possible capital markets activity, future write-offs of accounts receivable and accrued rent or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with

–more–

disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

First Quarter 2021
Low High
Projected EPS (diluted) $ 0.53 $ 0.57
Add:
Projected Company share of real estate depreciation and amortization 1.00 1.00
Projected FFO per share (diluted) $ 1.53 $ 1.57

Boston Properties will host a conference call on Wednesday, January 27, 2021 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2020 results, provide a business update pertaining to the current COVID-19 pandemic and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 2954797. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 2954797. 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’ fourth 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.

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 51.2 million square feet and 196 properties, including six 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 result in increasing unemployment that impacts the ability of our residential tenants to generate

–more–

sufficient income to pay, or makes them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; and the effectiveness or lack of effectiveness of governmental relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as may be required by law.

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
December 31, 2020 December 31, 2019
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 21,649,383 $ 21,458,412
Construction in progress 868,773 789,736
Land held for future development 450,954 254,828
Right of use assets - finance leases 237,393 237,394
Right of use assets - operating leases 146,406 148,640
Less: accumulated depreciation (5,534,102) (5,266,798)
Total real estate 17,818,807 17,622,212
Cash and cash equivalents 1,668,742 644,950
Cash held in escrows 50,587 46,936
Investments in securities 39,457 36,747
Tenant and other receivables, net 77,411 112,807
Related party note receivable, net 77,552 80,000
Note receivables, net 18,729 15,920
Accrued rental income, net 1,122,502 1,038,788
Deferred charges, net 640,085 689,213
Prepaid expenses and other assets 33,840 41,685
Investments in unconsolidated joint ventures 1,310,478 955,647
Total assets $ 22,858,190 $ 21,284,905
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,909,081 $ 2,922,408
Unsecured senior notes, net 9,639,287 8,390,459
Unsecured line of credit — —
Unsecured term loan, net 499,390 498,939
Lease liabilities - finance leases 236,492 224,042
Lease liabilities - operating leases 201,713 200,180
Accounts payable and accrued expenses 336,264 377,553
Dividends and distributions payable 171,082 170,713
Accrued interest payable 106,288 90,016
Other liabilities 412,084 387,994
Total liabilities 14,511,681 13,262,304
Commitments and contingencies — —
Redeemable deferred stock units 6,897 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 December 31, 2020 and December 31, 2019 200,000 200,000
BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
--- --- --- --- ---
December 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, 155,797,725 and 154,869,198 issued and 155,718,825 and 154,790,298 outstanding at December 31, 2020 and December 31, 2019, respectively 1,557 1,548
Additional paid-in capital 6,356,791 6,294,719
Dividends in excess of earnings (509,653) (760,523)
Treasury common stock at cost, 78,900 shares at December 31, 2020 and December 31, 2019 (2,722) (2,722)
Accumulated other comprehensive loss (49,890) (48,335)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,996,083 5,684,687
Noncontrolling interests:
Common units of the Operating Partnership 616,596 600,860
Property partnerships 1,726,933 1,728,689
Total equity 8,339,612 8,014,236
Total liabilities and equity $ 22,858,190 $ 21,284,905

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended December 31, Year ended December 31,
2020 2019 2020 2019
(in thousands, except for per share amounts)
Revenue
Lease $ 639,357 $ 706,349 $ 2,646,261 $ 2,758,014
Parking and other 15,903 26,727 70,680 103,534
Hotel revenue 464 11,793 7,478 48,589
Development and management services 6,356 10,473 29,641 40,039
Direct reimbursements of payroll and related costs from management services contracts 3,009 2,159 11,626 10,386
Total revenue 665,089 757,501 2,765,686 2,960,562
Expenses
Operating
Rental 256,194 268,919 1,017,208 1,050,010
Hotel 1,178 8,318 13,136 34,004
General and administrative 31,053 32,797 133,112 140,777
Payroll and related costs from management services contracts 3,009 2,159 11,626 10,386
Transaction costs 277 569 1,531 1,984
Depreciation and amortization 168,013 169,897 683,751 677,764
Total expenses 459,724 482,659 1,860,364 1,914,925
Other income (expense)
(Loss) income from unconsolidated joint ventures (79,700) (936) (85,110) 46,592
Gains (losses) on sales of real estate 5,259 (57) 618,982 709
Interest and other income (loss) 1,676 4,393 5,953 18,939
Gains from investments in securities 4,296 2,177 5,261 6,417
Loss from early extinguishment of debt — (1,530) — (29,540)
Impairment loss — — — (24,038)
Interest expense (111,991) (102,880) (431,717) (412,717)
Net income 24,905 176,009 1,018,691 651,999
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (13,980) (16,338) (48,260) (71,120)
Noncontrolling interest—common units of the Operating Partnership (990) (16,222) (97,704) (59,345)
Net income attributable to Boston Properties, Inc. 9,935 143,449 872,727 521,534
Preferred dividends (2,625) (2,625) (10,500) (10,500)
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 140,824 $ 862,227 $ 511,034
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.05 $ 0.91 $ 5.54 $ 3.31
Weighted average number of common shares outstanding 155,682 154,667 155,432 154,582
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.05 $ 0.91 $ 5.54 $ 3.30
Weighted average number of common and common equivalent shares outstanding 155,731 154,992 155,517 154,883

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended December 31, Year ended December 31,
2020 2019 2020 2019
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 7,310 $ 140,824 $ 862,227 $ 511,034
Add:
Preferred dividends 2,625 2,625 10,500 10,500
Noncontrolling interest - common units of the Operating Partnership 990 16,222 97,704 59,345
Noncontrolling interests in property partnerships 13,980 16,338 48,260 71,120
Net income 24,905 176,009 1,018,691 651,999
Add:
Depreciation and amortization expense 168,013 169,897 683,751 677,764
Noncontrolling interests in property partnerships’ share of depreciation and amortization (15,910) (18,116) (71,850) (71,389)
Company’s share of depreciation and amortization from unconsolidated joint ventures 21,168 14,458 80,925 58,451
Corporate-related depreciation and amortization (441) (477) (1,840) (1,695)
Impairment loss on investment in unconsolidated joint venture 60,524 — 60,524 —
Impairment loss — — — 24,038
Less:
Gains on sales of real estate included within (loss) income from unconsolidated joint ventures 12 (32) 5,958 47,238
Gains (losses) on sales of real estate 5,259 (57) 618,982 709
Noncontrolling interests in property partnerships 13,980 16,338 48,260 71,120
Preferred dividends 2,625 2,625 10,500 10,500
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 236,383 322,897 1,086,501 1,209,601
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 23,275 32,960 108,310 123,757
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 213,108 $ 289,937 $ 978,191 $ 1,085,844
Boston Properties, Inc.’s percentage share of funds from operations - basic 90.15 % 89.79 % 90.03 % 89.77 %
Weighted average shares outstanding - basic 155,682 154,667 155,432 154,582
FFO per share basic $ 1.37 $ 1.87 $ 6.29 $ 7.02
Weighted average shares outstanding - diluted 155,731 154,992 155,517 154,883
FFO per share diluted $ 1.37 $ 1.87 $ 6.29 $ 7.01

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

Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Leased by Location
December 31, 2020 December 31, 2019
Boston 94.8 % 95.9 %
Los Angeles 93.5 % 96.7 %
New York 87.4 % 92.9 %
San Francisco 91.0 % 93.7 %
Washington, DC 84.4 % 87.6 %
Total Portfolio 90.1 % 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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