Equibles

8-K

BXP, Inc. (BXP)

8-K 2023-11-01 For: 2023-11-01
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): November 1, 2023

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On November 1, 2023, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the third quarter of 2023. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended September 30, 2023.
*99.2 Press release dated November 1, 2023.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: November 1, 2023

Document

Exhibit 99.1

a751gatewaya.jpg

bxp-color.gif

Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2023

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP’s portfolio totals 53.5 million square feet and 190 properties, including 11 properties under construction/redevelopment. BXP’s properties include 169 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP 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 clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned a twelfth consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increasing interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise 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 55.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 59.

GENERAL INFORMATION

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

(Cover photo: 751 Gateway, South San Francisco, CA)

Q3 2023
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 5
Consolidated Income Statements 6
Funds From Operations (FFO) 7
Funds Available for Distribution (FAD) 8
Net Operating Income (NOI) 9
Same Property Net Operating Income (NOI) by Reportable Segment 11
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 12
Acquisitions and Dispositions 13
DEVELOPMENT ACTIVITY
Construction in Progress 14
Land Parcels and Purchase Options 16
LEASING ACTIVITY
Leasing Activity 17
PROPERTY STATISTICS
Portfolio Overview 18
Residential and Hotel Performance 19
In-Service Property Listing 21
Top 20 Clients Listing and Portfolio Client Diversification 25
Occupancy by Location 26
DEBT AND CAPITALIZATION
Capital Structure 27
Debt Analysis 28
Senior Unsecured Debt Covenant Compliance Ratios 29
Net Debt to EBITDAre 30
Debt Ratios 31
JOINT VENTURES
Consolidated Joint Ventures 32
Unconsolidated Joint Ventures 34
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 37
Boston 38
Los Angeles 40
New York 42
San Francisco 44
Seattle 46
Washington, DC 48
CBD 50
Suburban 52
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 54
Definitions 55
Reconciliations 59
Consolidated Income Statement - Prior Year 67
Q3 2023
--- ---
Company profile

SNAPSHOT

(as of September 30, 2023)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 190
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 53.5 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 175.5 million
Closing Price, at the end of the quarter $59.48 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 6.6%
Consolidated Market Capitalization 2 $25.4 billion
BXP’s Share of Market Capitalization 2, 3 $25.6 billion
Unsecured Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

•continue to embrace our leadership position in the premier workplace segment and leverage our strength in portfolio quality, client relationships, development skills, market penetration, and sustainability to profitably build market share;

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

•invest in the highest quality buildings (primarily premier workplaces) 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, marketing, legal, 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 clients and (4) develop and manage our assets in the most sustainable manner possible;

•pursue attractive asset class adjacencies where we have a track record of success, such as life sciences and residential development;

•maintain a leadership position in sustainability innovation to minimize emissions from BXP’s development and in-service portfolio, as well as to provide clients sustainable solutions for their space use needs;

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

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

MANAGEMENT

Board of Directors
Owen D. Thomas Chairman of the Board Owen D. Thomas Chief Executive Officer
Douglas T. Linde Douglas T. Linde President
Joel I. Klein Lead Independent Director Raymond A. Ritchey Senior Executive Vice President
Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Kelly A. Ayotte Donna D. Garesche Executive Vice President, Chief Human Resources Officer
Bruce W. Duncan Chair of Compensation Committee Bryan J. Koop Executive Vice President, Boston Region
Carol B. Einiger Robert E. Pester Executive Vice President, San Francisco Region
Diane J. Hoskins Chair of Sustainability Committee Hilary Spann Executive Vice President, New York Region
Mary E. Kipp Chair of Audit Committee Peter V. Otteni Executive Vice President, Co-Head of the Washington, DC
Matthew J. Lustig Chair of Nominating & Corporate Region
Governance Committee John J. Stroman Executive Vice President, Co-Head of the Washington, DC
William H. Walton, III Region
Derek A. (Tony) West Rodney C. Diehl Senior Vice President, Co-Head of the West Coast Regions
Eric G. Kevorkian Senior Vice President, Chief Legal Officer and Secretary
Michael R. Walsh Senior Vice President, Chief Accounting Officer
James J. Whalen Senior Vice President, Chief Information & Technology Officer

___________________

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

2For additional detail, see page 27.

3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

Q3 2023
Guidance and assumptions

GUIDANCE

BXP’s guidance for the full year 2023 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on November 1, 2023 and those referenced during the related conference call.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 57. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Full Year 2023
Low High
Projected EPS (diluted) $ 1.05 $ 1.07
Add:
Projected Company share of real estate depreciation and amortization 4.85 4.85
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments 1.35 1.35
Projected FFO per share (diluted) $ 7.25 $ 7.27

ASSUMPTIONS

(dollars in thousands)

Full Year 2023
Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 89.00 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) — % 0.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 1.50 % 2.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 100,000 $ 105,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (30,000) $ (28,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 115,000 $ 125,000
Termination income $ 9,000 $ 11,000
Other revenue (expense):
Development, management services and other revenue $ 36,000 $ 38,000
General and administrative expense 1 $ (164,000) $ (157,000)
Consolidated net interest expense 2 $ (520,000) $ (510,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (154,000) $ (151,000)

_______________

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

2 Excludes $(97M) - $(94M) for full year 2023 of BXP’s share of projected interest expense from unconsolidated joint ventures.

Q3 2023
Financial highlights

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

Three Months Ended
30-Sep-23 30-Jun-23
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 104,299
Net income (loss) attributable to Boston Properties, Inc. per share - diluted $ (0.71) $ 0.66
FFO attributable to Boston Properties, Inc. 1 $ 292,822 $ 292,844
Diluted FFO per share 1 $ 1.86 $ 1.86
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 210,044 $ 248,588
Selected items:
Revenue $ 824,283 $ 817,153
Recoveries from clients $ 134,599 $ 129,528
Service income from clients $ 2,870 $ 2,846
BXP’s Share of revenue 3 $ 808,803 $ 805,187
BXP’s Share of straight-line rent 3 $ 16,647 $ 24,927
BXP’s Share of fair value lease revenue 3, 4 $ 3,907 $ 6,776
BXP’s Share of termination income 3 $ 2,935 $ 3,225
Ground rent expense $ 3,589 $ 3,441
Capitalized interest $ 9,676 $ 10,564
Capitalized wages $ 4,416 $ 4,580
Loss from unconsolidated joint ventures 5 $ (247,556) $ (6,668)
BXP’s share of FFO from unconsolidated joint ventures 6 $ 14,957 $ 19,088
Net income attributable to noncontrolling interests in property partnerships $ 20,909 $ 19,768
FFO attributable to noncontrolling interests in property partnerships 7 $ 39,083 $ 37,626
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 3,196 $ 3,516
Below-market rents (included within Other Liabilities) $ 38,049 $ 42,516
Accrued rental income liability (included within Other Liabilities) $ 107,462 $ 123,212
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8 3.00 3.18
Interest Coverage Ratio (including capitalized interest) 8 2.79 2.93
Fixed Charge Coverage Ratio 8 2.53 2.54
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 9 7.28 7.31
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10 (0.3) % 0.0 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10 1.7 % 2.2 %
FAD Payout Ratio 2 81.94 % 69.23 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 62.4 % 63.1 %
Occupancy % of In-Service Properties 11 88.8 % 88.3 %
Leased % of In-Service Properties 12 90.4 % 90.4 %
Capitalization:
Consolidated Debt $ 14,961,715 $ 15,456,205
BXP’s Share of Debt 13 $ 15,120,033 $ 15,706,496
Consolidated Market Capitalization $ 25,401,704 $ 25,563,883
Consolidated Debt/Consolidated Market Capitalization 58.90 % 60.46 %
BXP’s Share of Market Capitalization 13 $ 25,560,022 $ 25,814,174
BXP’s Share of Debt/BXP’s Share of Market Capitalization 13 59.16 % 60.84 %

_____________

1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. and Diluted FFO per share, see page 7.

2For a quantitative reconciliation of FAD, see page 8. 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 55.

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

5For the three months ended September 30, 2023, includes an impairment charge totaling approximately $272.6 million related to the Company’s investment in four unconsolidated joint ventures, partially offset by a gain of approximately $35.8 million related to the Company’s investment in Metropolitan Square, see page 34.

6For a quantitative reconciliation for the three months ended September 30, 2023, see page 36.

7For a quantitative reconciliation for the three months ended September 30, 2023, see page 33.

8For a quantitative reconciliation for the three months ended September 30, 2023 and June 30, 2023, see page 31.

Q3 2023
Financial highlights (continued)

9For a quantitative reconciliation for the three months ended September 30, 2023 and June 30, 2023, see page 30.

10For a quantitative reconciliation for the three months ended September 30, 2023 and June 30, 2023, see pages 11, 65 and 66.

11Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Excludes hotel and residential properties.

12Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. Excludes hotel and residential properties.

13For a quantitative reconciliation for September 30, 2023, see page 27.

Q3 2023
Consolidated Balance Sheets

(unaudited and in thousands)

30-Sep-23 30-Jun-23
ASSETS
Real estate $ 24,809,369 $ 24,642,681
Construction in progress 551,330 482,850
Land held for future development 670,691 637,191
Right of use assets - finance leases 237,532 237,526
Right of use assets - operating leases 1 322,790 166,421
Less accumulated depreciation (6,723,616) (6,568,568)
Total real estate 19,868,096 19,598,101
Cash and cash equivalents 882,647 1,581,575
Cash held in escrows 47,741 46,915
Investments in securities 32,809 33,481
Tenant and other receivables, net 123,138 91,968
Related party note receivable, net 88,807 88,834
Sales-type lease receivable, net 13,475 13,250
Accrued rental income, net 1,331,796 1,318,320
Deferred charges, net 692,386 710,820
Prepaid expenses and other assets 121,431 77,457
Investments in unconsolidated joint ventures 1,536,822 1,780,959
Total assets $ 24,739,148 $ 25,341,680
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,275,974 $ 3,274,764
Unsecured senior notes, net 10,488,568 10,985,395
Unsecured line of credit — —
Unsecured term loan, net 1,197,173 1,196,046
Lease liabilities - finance leases 253,178 251,874
Lease liabilities - operating leases 1 341,299 204,826
Accounts payable and accrued expenses 462,240 434,574
Dividends and distributions payable 171,916 171,465
Accrued interest payable 128,422 111,088
Other liabilities 380,014 418,813
Total liabilities 16,698,784 17,048,845
Commitments and contingencies — —
Redeemable deferred stock units 6,788 6,292
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 157,018,080 and 156,932,300 issued and 156,939,180 and 156,853,400 outstanding at September 30, 2023 and June 30, 2023, respectively 1,569 1,569
Additional paid-in capital 6,568,645 6,561,161
Dividends in excess of earnings (782,275) (516,550)
Treasury common stock at cost, 78,900 shares at September 30, 2023 and June 30, 2023 (2,722) (2,722)
Accumulated other comprehensive income (loss) 2,866 (3,406)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,788,083 6,040,052
Noncontrolling interests:
Common units of the Operating Partnership 656,587 689,123
Property partnerships 1,588,906 1,557,368
Total equity 8,033,576 8,286,543
Total liabilities and equity $ 24,739,148 $ 25,341,680

_____________

1On August 1, 2023, the Company recorded approximately $160.1 million and $134.5 million of Right of Use Assets – Operating Leases and Lease Liabilities – Operating Leases, respectively, related to the 99-year ground lease in New York City with the Metropolitan Square Transportation Authority. For additional details, see page 16.

Q3 2023
Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Sep-23 30-Jun-23
Revenue
Lease $ 767,181 $ 761,733
Parking and other 29,649 26,054
Insurance proceeds 779 930
Hotel revenue 13,484 13,969
Development and management services 9,284 9,858
Direct reimbursements of payroll and related costs from management services contracts 3,906 4,609
Total revenue 824,283 817,153
Expenses
Operating 159,923 150,735
Real estate taxes 140,368 137,566
Demolition costs (619) 738
Restoration expenses related to insurance claims 520 1,997
Hotel operating 9,020 8,161
General and administrative 1 31,410 44,175
Payroll and related costs from management services contracts 3,906 4,609
Transaction costs 751 308
Depreciation and amortization 207,435 202,577
Total expenses 552,714 550,866
Other income (expense)
Loss from unconsolidated joint ventures 2 (247,556) (6,668)
Gains on sales of real estate 517 —
Gains (losses) from investments in securities 1 (925) 1,571
Unrealized gain (loss) on non-real estate investment (51) 124
Interest and other income (loss) 20,715 17,343
Interest expense (147,812) (142,473)
Net income (loss) (103,543) 136,184
Net (income) loss attributable to noncontrolling interests
Noncontrolling interest in property partnerships (20,909) (19,768)
Noncontrolling interest - common units of the Operating Partnership 3 12,626 (12,117)
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 104,299
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income (loss) attributable to Boston Properties, Inc. per share - basic $ (0.71) $ 0.67
Net income (loss) attributable to Boston Properties, Inc. per share - diluted $ (0.71) $ 0.66

_____________

1Includes $(0.9) million and $1.6 million for the three months ended September 30, 2023 and June 30, 2023, respectively, related to the Company’s deferred compensation plan.

2For the three months ended September 30, 2023, includes an impairment charge totaling approximately $272.6 million related to the Company’s investment in four unconsolidated joint ventures, partially offset by a gain of approximately $35.8 million related to the Company’s investment in Metropolitan Square, see page 34.

3For additional detail, see page 7.

Q3 2023
Funds from operations (FFO) 1

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

Three Months Ended
30-Sep-23 30-Jun-23
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 104,299
Add:
Noncontrolling interest - common units of the Operating Partnership (12,626) 12,117
Noncontrolling interests in property partnerships 20,909 19,768
Net income (loss) (103,543) 136,184
Add:
Depreciation and amortization expense 207,435 202,577
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (18,174) (17,858)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 25,666 25,756
Corporate-related depreciation and amortization (446) (442)
Impairment losses included within loss from unconsolidated joint ventures 4 272,603 —
Less:
Gains on sales of real estate 517 —
Gain on investment included within loss from unconsolidated joint ventures 4 35,756 —
Unrealized gain (loss) on non-real estate investment (51) 124
Noncontrolling interests in property partnerships 20,909 19,768
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 326,410 326,325
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 33,588 33,481
FFO attributable to Boston Properties, Inc. $ 292,822 $ 292,844
Boston Properties, Inc.’s percentage share of Basic FFO 89.71 % 89.74 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.29 % 10.26 %
Basic FFO per share $ 1.87 $ 1.87
Weighted average shares outstanding - basic 156,880 156,826
Diluted FFO per share $ 1.86 $ 1.86
Weighted average shares outstanding - diluted 157,269 157,218

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Sep-23 30-Jun-23
Basic FFO $ 326,410 $ 326,325
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 326,410 326,325
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 33,522 33,383
Boston Properties, Inc.’s share of Diluted FFO $ 292,888 $ 292,942

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Sep-23 30-Jun-23
Shares/units for Basic FFO 174,882 174,748
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 389 392
Shares/units for Diluted FFO 175,271 175,140
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 18,002 17,922
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,269 157,218
Boston Properties, Inc.’s percentage share of Diluted FFO 89.73 % 89.77 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

2For a quantitative reconciliation for the three months ended September 30, 2023, see page 33.

3For a quantitative reconciliation for the three months ended September 30, 2023, see page 36.

4For additional information for the three months ended September 30, 2023, see page 34.

Q3 2023
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Sep-23 30-Jun-23
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 104,299
Add:
Noncontrolling interest - common units of the Operating Partnership (12,626) 12,117
Noncontrolling interests in property partnerships 20,909 19,768
Net income (loss) (103,543) 136,184
Add:
Depreciation and amortization expense 207,435 202,577
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (18,174) (17,858)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 25,666 25,756
Corporate-related depreciation and amortization (446) (442)
Impairment losses included within loss from unconsolidated joint ventures 4 272,603 —
Less:
Gains on sales of real estate 517 —
Gain on investment included within loss from unconsolidated joint ventures 4 35,756 —
Unrealized gain (loss) on non-real estate investment (51) 124
Noncontrolling interests in property partnerships 20,909 19,768
Basic FFO 326,410 326,325
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 5 (5,963) 3,231
BXP’s Share of hedge amortization, net of costs 1 (473) 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of straight-line ground rent expense adjustment 1, 6 854 811
Stock-based compensation 4,843 14,935
Non-real estate depreciation 446 442
Unearned portion of capitalized fees from consolidated joint ventures 7 1,283 957
Less:
BXP’s Share of straight-line rent 1 16,647 24,927
BXP’s Share of fair value lease revenue 1, 8 3,907 6,776
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 79,932 43,992
BXP’s Share of maintenance capital expenditures 1, 9 16,995 24,132
Amortization and accretion related to sales type lease 233 229
Hotel improvements, equipment upgrades and replacements 141 306
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 210,044 $ 248,588
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 172,101 $ 172,092
FAD Payout Ratio1 (B÷A) 81.94 % 69.23 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

2For a quantitative reconciliation for the three months ended September 30, 2023, see page 33.

3For a quantitative reconciliation for the three months ended September 30, 2023, see page 36.

4 For additional information for the three months ended September 30, 2023, see page 34.

5Consists 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.

6Includes 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 2025 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

7See page 61 for additional information.

8Represents 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.

9Maintenance capital expenditures do not include capital expenditures that are planned at the time of acquisition or capital expenditures incurred in connection with repositioning activities.

Q3 2023
Reconciliation of net income (loss) attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
30-Sep-23 30-Sep-22
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977
Net (income) loss attributable to noncontrolling interests
Noncontrolling interest - common units of the Operating Partnership (12,626) 40,883
Noncontrolling interest in property partnerships 20,909 18,801
Net income (loss) (103,543) 420,661
Add:
Interest expense 147,812 111,846
Losses from investments in securities 925 1,571
Loss from unconsolidated joint ventures 247,556 3,524
Depreciation and amortization expense 207,435 190,675
Transaction costs 751 1,650
Payroll and related costs from management services contracts 3,906 3,900
General and administrative expense 31,410 32,519
Less:
Interest and other income (loss) 20,715 3,728
Unrealized loss on non-real estate investment (51) —
Gains on sales of real estate 517 262,345
Direct reimbursements of payroll and related costs from management services contracts 3,906 3,900
Development and management services revenue 9,284 7,465
Net Operating Income (NOI) 501,881 488,908
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 39,165 35,316
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 50,047 48,306
BXP’s Share of NOI 490,999 475,918
Less:
Termination income 2,564 1,980
BXP’s share of termination income from unconsolidated joint ventures 1 500 500
Add:
Partners’ share of termination income from consolidated joint ventures 2 129 57
BXP’s Share of NOI (excluding termination income) $ 488,064 $ 473,495
Net Operating Income (NOI) $ 501,881 $ 488,908
Less:
Termination income 2,564 1,980
NOI from non Same Properties (excluding termination income) 3 26,144 14,621
Same Property NOI (excluding termination income) 473,173 472,307
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 49,918 48,249
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 — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 38,665 34,816
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 5,094 796
BXP’s Share of Same Property NOI (excluding termination income) $ 456,826 $ 458,078

_____________

1For a quantitative reconciliation for the three months ended September 30, 2023, see page 64.

2For a quantitative reconciliation for the three months ended September 30, 2023, see pages 61-62.

3Pages 21-24 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude Metropolitan Square and properties that were sold prior to September 30, 2023 and therefore are no longer a part of the Company’s property portfolio. For details related to Metropolitan Square, see page 34.

Q3 2023
Reconciliation of net income (loss) attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
30-Sep-23 30-Sep-22
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977
Net (income) loss attributable to noncontrolling interests
Noncontrolling interest - common units of the Operating Partnership (12,626) 40,883
Noncontrolling interest in property partnerships 20,909 18,801
Net income (loss) (103,543) 420,661
Add:
Interest expense 147,812 111,846
Losses from investments in securities 925 1,571
Loss from unconsolidated joint ventures 247,556 3,524
Depreciation and amortization expense 207,435 190,675
Transaction costs 751 1,650
Payroll and related costs from management services contracts 3,906 3,900
General and administrative expense 31,410 32,519
Less:
Interest and other income (loss) 20,715 3,728
Unrealized loss on non-real estate investment (51) —
Gains on sales of real estate 517 262,345
Direct reimbursements of payroll and related costs from management services contracts 3,906 3,900
Development and management services revenue 9,284 7,465
Net Operating Income (NOI) 501,881 488,908
Less:
Straight-line rent 19,139 32,140
Fair value lease revenue 2,981 2,442
Amortization and accretion related to sales type lease 233 —
Termination income 2,564 1,980
Add:
Straight-line ground rent expense adjustment 1 578 631
Lease transaction costs that qualify as rent inducements 2 (5,943) 4,667
NOI - cash (excluding termination income) 471,599 457,644
Less:
NOI - cash from non Same Properties (excluding termination income) 3 18,721 9,868
Same Property NOI - cash (excluding termination income) 452,878 447,776
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 44,090 45,046
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 — —
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5 34,524 30,969
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 3,175 730
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 440,137 $ 432,969

_____________

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 $135 and $169 for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the Company has remaining lease payments aggregating approximately $24.3 million, all of which it expects to incur by the end of 2025 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 2025 may vary significantly.

2Consist of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 8.

3Pages 21-24 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude Metropolitan Square and properties that were sold prior to September 30, 2023 and therefore are no longer a part of the Company’s property portfolio. For details related to Metropolitan Square, see page 34.

4For a quantitative reconciliation for the three months ended September 30, 2023, see page 62.

5For a quantitative reconciliation for the three months ended September 30, 2023, see page 64.

Q3 2023
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Sep-23 30-Sep-22 Change Change 30-Sep-23 30-Sep-22 Change Change
Rental Revenue 2 $ 749,488 $ 732,126 $ 25,273 $ 23,016
Less: Termination income 2,347 1,980 — —
Rental revenue (excluding termination income) 2 747,141 730,146 2.3 % 25,273 23,016 9.8 %
Less: Operating expenses and real estate taxes 284,483 266,517 17,966 6.7 % 14,758 14,338 420 2.9 %
NOI (excluding termination income) 2, 3 $ 462,658 $ 463,629 (0.2) % $ 10,515 $ 8,678 21.2 %
Rental revenue (excluding termination income) 2 $ 747,141 $ 730,146 2.3 % $ 25,273 $ 23,016 9.8 %
Less: Straight-line rent and fair value lease revenue 14,862 28,305 (13,443) (47.5) % 68 60 8 13.3 %
Add: Lease transaction costs that qualify as rent inducements 4 (5,943) 3,203 (9,146) (285.5) % — — — — %
Subtotal 726,336 705,044 21,292 3.0 % 25,205 22,956 2,249 9.8 %
Less: Operating expenses and real estate taxes 284,483 266,517 17,966 6.7 % 14,758 14,338 420 2.9 %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 442,431 $ 439,158 0.7 % $ 10,447 $ 8,618 21.2 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Sep-23 30-Sep-22 Change Change 30-Sep-23 30-Sep-22 Change Change
Rental Revenue 2 $ 774,761 $ 755,142 $ 59,104 $ 58,027
Less: Termination income 2,347 1,980 500 500
Rental revenue (excluding termination income) 2 772,414 753,162 2.6 % 58,604 57,527 1.9 %
Less: Operating expenses and real estate taxes 299,241 280,855 18,386 6.5 % 25,033 23,507 1,526 6.5 %
NOI (excluding termination income) 2, 3 $ 473,173 $ 472,307 0.2 % $ 33,571 $ 34,020 (1.3) %
Rental revenue (excluding termination income) 2 $ 772,414 $ 753,162 2.6 % $ 58,604 $ 57,527 1.9 %
Less: Straight-line rent and fair value lease revenue 14,930 28,365 (13,435) (47.4) % 2,553 5,293 (2,740) (51.8) %
Add: Lease transaction costs that qualify as rent inducements 4 (5,943) 3,203 (9,146) (285.5) % 190 1,368 (1,178) (86.1) %
Subtotal 751,541 728,000 23,541 3.2 % 56,241 53,602 2,639 4.9 %
Less: Operating expenses and real estate taxes 299,241 280,855 18,386 6.5 % 25,033 23,507 1,526 6.5 %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % 141 144 (3) (2.1) %
NOI - cash (excluding termination income) 2, 3 $ 452,878 $ 447,776 1.1 % $ 31,349 $ 30,239 3.7 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 2, 6
Three Months Ended % Three Months Ended %
30-Sep-23 30-Sep-22 Change Change 30-Sep-23 30-Sep-22 Change Change
Rental Revenue 2 $ 83,203 $ 79,336 $ 750,662 $ 733,833
Less: Termination income 129 57 2,718 2,423
Rental revenue (excluding termination income) 2 83,074 79,279 4.8 % 747,944 731,410 2.3 %
Less: Operating expenses and real estate taxes 33,156 31,030 2,126 6.9 % 291,118 273,332 17,786 6.5 %
NOI (excluding termination income) 2, 3 $ 49,918 $ 48,249 3.5 % $ 456,826 $ 458,078 (0.3) %
Rental revenue (excluding termination income) 2 $ 83,074 $ 79,279 4.8 % $ 747,944 $ 731,410 2.3 %
Less: Straight-line rent and fair value lease revenue 6,131 3,203 2,928 91.4 % 11,352 30,455 (19,103) (62.7) %
Add: Lease transaction costs that qualify as rent inducements 4 303 — 303 100.0 % (6,056) 4,571 (10,627) (232.5) %
Subtotal 77,246 76,076 1,170 1.5 % 730,536 705,526 25,010 3.5 %
Less: Operating expenses and real estate taxes 33,156 31,030 2,126 6.9 % 291,118 273,332 17,786 6.5 %
Add: Straight-line ground rent expense 5 — — — — % 719 775 (56) (7.2) %
NOI - cash (excluding termination income) 2, 3 $ 44,090 $ 45,046 (2.1) % $ 440,137 $ 432,969 1.7 %

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 55.

3For a quantitative reconciliation of net income (loss) attributable to Boston Properties, Inc. to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 9-10.

4Consist of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 8.

5Excludes the straight-line impact of approximately $135 and $169 for the three months ended September 30, 2023 and 2022, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

6BXP’s Share equals (A) + (B) - (C).

Q3 2023
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Sep-23 30-Jun-23
Maintenance capital expenditures $ 19,599 $ 29,015
Planned capital expenditures associated with acquisition properties 32 33
Repositioning capital expenditures 10,575 7,252
Hotel improvements, equipment upgrades and replacements 141 306
Subtotal 30,347 36,606
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 91 338
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 2,908 1,498
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 2,695 5,221
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 622 925
BXP’s Share of Capital Expenditures 1 $ 30,029 $ 32,296

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Sep-23 30-Jun-23
Square feet 1,184,449 891,347
Tenant improvements and lease commissions PSF $ 89.81 $ 60.70

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

2Includes 100% of unconsolidated joint ventures.

Q3 2023
Acquisitions and dispositions

For the period from January 1, 2023 through September 30, 2023

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
13100 and 13150 Worldgate Drive (50% ownership) 1 Herndon, VA January 31, 2023 N/A $ 17,000 $ — $ 17,000 N/A
Total Acquisitions — $ 17,000 $ — $ 17,000 — %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain 2
N/A — $ — $ — $ —
Total Dispositions — $ — $ — $ —

___________________

1Consists of two vacant office buildings aggregating approximately 350,000 rentable square feet and a 1,200-space structured parking deck situated on a 10-acre site. The joint venture intends to redevelop the property for residential use and the vacant properties are not reflected in the Company’s in-service property listing. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.

2Excludes approximately $0.5 million of gains on sales of real estate recognized during the nine months ended September 30, 2023 related to gain amounts from sales of real estate occurring in prior periods.

Q3 2023
Construction in progress

as of September 30, 2023

(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 9/30/2023 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income 5 (BXP’s share)
Construction Properties Location
Office
360 Park Avenue South (42% ownership) 6 Q3 2024 Q4 2025 New York, NY 450,000 $ 207,253 $ 248,000 $ 92,774 $ 92,768 $ 40,741 18 % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 38,910 61,000 — — 22,090 — % — % N/A
Total Office Properties under Construction 540,000 246,163 309,000 92,774 92,768 62,831 15 % — % —
Lab/Life Sciences
103 CityPoint Q4 2024 Q3 2025 Waltham, MA 113,000 84,873 115,100 — — 30,227 — % — % N/A
180 CityPoint Q1 2024 Q3 2025 Waltham, MA 329,000 207,941 290,500 — — 82,559 43 % 5 % $ —
300 Binney Street (Redevelopment) Q1 2025 Q1 2025 Cambridge, MA 236,000 39,049 205,300 — — 166,251 100 % — % N/A
105 Carnegie Center (Redevelopment) Q4 2024 Q2 2025 Princeton, NJ 73,000 2,062 40,600 — — 38,538 — % — % N/A
651 Gateway (50% ownership) Q1 2024 Q4 2025 South San Francisco, CA 327,000 94,241 167,100 — — 72,859 21 % — % N/A
290 Binney Street Q2 2026 Q2 2026 Cambridge, MA 566,000 210,885 1,116,300 — — 905,415 100 % — % N/A
Total Lab/Life Sciences Properties under Construction 1,644,000 639,051 1,934,900 — — 1,295,849 62 % 1 % —
Residential
Skymark - Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 28,815 47,700 28,000 10,733 1,618 — % — % N/A
Total Residential Property under Construction 417,000 28,815 47,700 28,000 10,733 1,618 — % — % N/A
Retail
760 Boylston Street (Redevelopment) Q2 2024 Q2 2024 Boston, MA 118,000 14,742 43,800 — — 29,058 100 % — % N/A
Reston Next Retail Q2 2025 Q4 2025 Reston, VA 33,000 21,978 26,600 — — 4,622 — % — % N/A
Total Retail Properties under Construction 151,000 36,720 70,400 — — 33,680 78 % — N/A
Total Properties Under Construction 2,752,000 $ 950,749 $ 2,362,000 $ 120,774 $ 103,501 $ 1,393,978 52 % 7 1 % $ —

PROJECTS FULLY PLACED IN-SERVICE DURING 2023

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 9/30/2023 Estimated Future Equity Requirement 2 Net Operating Income 5 (BXP’s share)
Initial Occupancy Stabilization Date Investment to Date 2 Total Financing Percentage Leased 3
Location Square Feet
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 475,849 $ 360,136 $ 375,900 $ — $ — $ 15,764 93 % $ 2,738
View Boston observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 63,000 178,182 182,300 — — 4,118 N/A N/A 8
140 Kendrick - Building A (Redevelopment) Q3 2023 Q3 2023 Needham, MA 104,166 22,189 26,600 — — 4,411 100 % 960
751 Gateway (49% ownership) Q3 2023 Q3 2023 South San Francisco, CA 230,592 117,098 127,600 — — 10,502 100 % 716
Total Projects Fully Placed In-Service 873,607 $ 677,605 $ 712,400 $ — $ — $ 34,795 96 % 9 $ 4,414
Q3 2023
--- ---
Construction in progress (continued)

________________

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 October 30, 2023, 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 for the three months ended September 30, 2023. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 55.

6Investment to Date includes all related costs incurred prior to the contribution of the property by the Company to the joint venture on December 15, 2021 totaling approximately $107 million and the Company’s proportionate share of the loan. The Company’s joint venture partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the joint venture partners will fund required capital according to their percentage interests. Investment to date excludes approximately $54 million of an impairment charge.

7Total percentage leased excludes Residential.

8 Result of operations from the View Boston observatory is included within the result of operations from 800 Boylston Street - The Prudential Center.

9Total percentage leased excludes View Boston observatory at The Prudential Center.

Q3 2023
Land parcels and purchase options

as of September 30, 2023

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2,229,000
San Jose, CA 2 2,199,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% ownership) 1,088,000
New York, NY (55% ownership) 3 895,000
San Francisco, CA 850,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% ownership) 451,000
Springfield, VA 422,000
Lexington, MA 420,000
Waltham, MA 365,000
Herndon, VA (50% ownership) 350,000
Rockville, MD 2 302,000
El Segundo, CA (50% ownership) 275,000
Dulles, VA 150,000
Total 14,798,000

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 887,000
Total 3,387,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

2Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 21-24.

3On July 28, 2023, BXP entered into a joint venture agreement with an institutional investor for the future development of 343 Madison Avenue. Subsequently, on August 1, 2023, the joint venture executed a 99-year ground lease with the Metropolitan Transportation Authority for the approximately 25,000 square foot site. The ground lease requires the joint venture to construct the direct access to Grand Central Madison as Phase 1 of the development project.

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

Q3 2023
Leasing activity

for the three months ended September 30, 2023

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,802,761
Less:
Property dispositions/properties taken out of service 1 289,204
Add:
Properties placed (and partially placed) in-service 2 334,758
Leases expiring or terminated during the period 1,205,603
Total space available for lease 7,053,918
1st generation leases 380,519
2nd generation leases with new clients 632,026
2nd generation lease renewals 552,423
Total space leased 1,564,968
Vacant space available for lease at the end of the period 5,488,950
Net (increase)/decrease in available space 313,811
Second generation leasing information: 3
Leases commencing during the period (SF) 1,184,449
Weighted average lease term (months) 81
Weighted average free rent period (days) 190
Total transaction costs per square foot 4 89.81
Increase (decrease) in gross rents 5 (3.34)
Increase (decrease) in net rents 6 (5.61)

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents Total square feet of leases executed in the quarter 8
1st generation 2nd generation total 7 gross 5, 7 net 6, 7
Boston 104,166 261,261 365,427 8.32 % 13.90 % 438,634
Los Angeles — 69,751 69,751 0.93 % 1.47 % 99,553
New York — 373,555 373,555 (5.15) % (10.83) % 239,591
San Francisco 230,592 175,618 406,210 (1.67) % (2.19) % 51,570
Seattle — — — — % — % 126,637
Washington, DC 45,761 304,264 350,025 (10.43) % (15.75) % 99,796
Total / Weighted Average 380,519 1,184,449 1,564,968 (3.34) % (5.61) % 1,055,781

_____________

1Total square feet of property taken out of service in Q3 2023 consists of 289,204 at Metropolitan Square, see page 34.

2 Total square feet of properties placed in service in Q3 2023 consists of 230,592 at 751 Gateway and 104,166 at 140 Kendrick Street.

3Second generation leases are defined as leases for space that has previously been leased. Of the 1,184,449 square feet of second generation leases that commenced in Q3 2023, leases for 1,024,020 square feet were signed in prior periods.

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

5Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 789,077 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 789,077 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

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

8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 189,541.

Q3 2023
Portfolio overview

for the three months ended September 30, 2023

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,670,294 1,049,100 550,114 330,000 16,599,508
Los Angeles 2,186,794 126,377 — — 2,313,171
New York 12,108,672 486,844 — — 12,595,516
San Francisco 7,228,758 354,110 318,171 — 7,901,039
Seattle 1,507,450 26,472 — — 1,533,922
Washington, DC 8,617,333 662,626 493,241 — 9,773,200
Total 46,319,301 2,705,529 1,361,526 330,000 50,716,356
% of Total 91.33 % 5.33 % 2.68 % 0.66 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 728,440 $ 58,064 $ 11,205 $ 13,384 $ 811,093
Less:
Partners’ share from consolidated joint ventures 4 72,940 10,263 — — 83,203
Add:
BXP’s share from unconsolidated joint ventures 5 61,453 3,231 2,741 — 67,425
BXP’s Share of Rental revenue 1 $ 716,953 $ 51,032 $ 13,946 $ 13,384 $ 795,315
% of Total 90.15 % 6.42 % 1.75 % 1.68 % 100.00 %

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

CBD Suburban Total
Boston 30.19 % 7.05 % 37.24 %
Los Angeles 2.46 % — % 2.46 %
New York 24.06 % 1.91 % 25.97 %
San Francisco 16.32 % 2.18 % 18.50 %
Seattle 2.36 % — % 2.36 %
Washington, DC 3.42 % 10.05 % 13.47 %
Total 78.81 % 21.19 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

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 21-24.

3Excludes approximately $100 of revenue from retail clients that is included in Retail.

4See page 62 for additional information.

5See page 64 for additional information.

6BXP’s Share of NOI (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of NOI (excluding termination income), see page 9.

Q3 2023
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
30-Sep-23 30-Jun-23 30-Sep-23 30-Jun-23
Rental Revenue 2 $ 11,789 $ 12,253 $ 13,484 $ 13,969
Less: Operating expenses and real estate taxes 5,738 5,783 9,020 8,161
Net Operating Income (NOI) 2 6,051 6,470 4,464 5,808
Add: BXP’s share of NOI from unconsolidated joint ventures 1,715 1,722 N/A N/A
BXP’s Share of NOI 2 $ 7,766 $ 8,192 $ 4,464 $ 5,808
Rental Revenue 2 $ 11,789 $ 12,253 $ 13,484 $ 13,969
Less: Straight line rent and fair value lease revenue 70 9 (2) (2)
Add: Lease transaction costs that qualify as rent inducements — — — —
Subtotal 11,719 12,244 13,486 13,971
Less: Operating expenses and real estate taxes 5,738 5,783 9,020 8,161
NOI - cash basis 2 5,981 6,461 4,466 5,810
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,715 1,722 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 7,696 $ 8,183 $ 4,466 $ 5,810

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-23 30-Sep-22
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 4,293 $ 4,102 4.66 %
Average Rental Rate Per Occupied Square Foot $ 5.89 $ 5.64 4.43 %
Average Physical Occupancy 95.23 % 95.45 % (0.23) %
Average Economic Occupancy 94.97 % 95.22 % (0.26) %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 3,113 $ 2,895 7.53 %
Average Rental Rate Per Occupied Square Foot $ 5.71 $ 5.32 7.33 %
Average Physical Occupancy 95.24 % 95.60 % (0.38) %
Average Economic Occupancy 94.66 % 94.86 % (0.21) %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,462 $ 4,237 5.31 %
Average Rental Rate Per Occupied Square Foot $ 4.95 $ 4.71 5.10 %
Average Physical Occupancy 96.90 % 99.61 % (2.72) %
Average Economic Occupancy 96.55 % 99.28 % (2.75) %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 81.60 % 75.80 % 7.65 %
Average Daily Rate $ 331.37 $ 328.40 0.90 %
Revenue Per Available Room $ 270.50 $ 249.06 8.61 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 3 402
Average Monthly Rental Rate $ 3,509 $ 3,400 3.21 %
Average Rental Rate Per Occupied Square Foot $ 4.45 $ 4.27 4.22 %
Average Physical Occupancy 93.12 % 92.79 % 0.36 %
Average Economic Occupancy 91.28 % 90.17 % 1.23 %
Q3 2023
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-23 30-Sep-22
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,726 $ 2,671 2.06 %
Average Rental Rate Per Occupied Square Foot $ 2.82 $ 2.75 2.55 %
Average Physical Occupancy 95.54 % 96.26 % (0.75) %
Average Economic Occupancy 94.94 % 95.93 % (1.03) %
Total In-Service Residential Units 1,716

_____________

1Includes retail space.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

3Excludes retail space.

Q3 2023
In-service property listing as of September 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,765,911 95.2 % 97.3 % $ 80.80
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,274,980 94.6 % 95.1 % 71.16
100 Federal Street (55% ownership) CBD Boston MA 1 1,233,537 94.5 % 94.9 % 75.38
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,446 93.5 % 95.2 % 75.47
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 789,375 99.8 % 99.8 % 88.01
100 Causeway Street (50% ownership) 4 CBD Boston MA 1 634,535 94.5 % 94.5 % 74.39
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 98.7 % 98.7 % 59.88
Prudential Center (retail shops) 5 CBD Boston MA — 484,626 95.5 % 95.5 % 104.11
The Hub on Causeway - Podium (50% ownership) 4 CBD Boston MA 1 382,988 93.8 % 93.8 % 64.65
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 100.0 % 81.63
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 100.0 % 61.64
Subtotal 10 8,353,430 95.6 % 96.4 % $ 77.54
145 Broadway East Cambridge MA 1 490,086 99.6 % 99.6 % $ 90.02
325 Main Street East Cambridge MA 1 414,565 91.4 % 91.4 % 110.87
125 Broadway 6 East Cambridge MA 1 271,000 100.0 % 100.0 % 138.52
355 Main Street East Cambridge MA 1 259,640 99.3 % 99.3 % 81.72
90 Broadway East Cambridge MA 1 223,771 98.1 % 98.1 % 77.69
255 Main Street East Cambridge MA 1 215,394 87.9 % 87.9 % 105.27
150 Broadway East Cambridge MA 1 177,226 100.0 % 100.0 % 86.86
105 Broadway East Cambridge MA 1 152,664 100.0 % 100.0 % 73.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 100.0 % 49.70
University Place Mid-Cambridge MA 1 195,282 100.0 % 100.0 % 56.23
Subtotal 10 2,466,990 97.2 % 97.2 % $ 92.83
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,068 54.4 % 54.4 % $ 50.30
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 50.7 % 50.7 % 46.72
140 Kendrick Street 7 Route 128 Mass Turnpike MA 3 418,604 84.4 % 84.4 % 52.82
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 100.0 % 58.00
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 90.8 % 90.8 % 44.24
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 85.6 % 85.6 % 45.78
200 West Street Route 128 Mass Turnpike MA 1 273,682 83.8 % 97.5 % 77.56
880 Winter Street 6 Route 128 Mass Turnpike MA 1 243,618 97.2 % 97.2 % 101.98
10 CityPoint Route 128 Mass Turnpike MA 1 236,570 90.9 % 90.9 % 56.35
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.1 % 98.1 % 56.63
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 97.8 % 97.8 % 54.46
890 Winter Street Route 128 Mass Turnpike MA 1 179,312 56.2 % 60.8 % 46.35
153 & 211 Second Avenue Route 128 Mass Turnpike MA 2 136,882 100.0 % 100.0 % 82.79
1265 Main Street (50% ownership) 4 Route 128 Mass Turnpike MA 1 120,681 100.0 % 100.0 % 53.93
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 100.0 % 53.10
The Point 6 Route 128 Mass Turnpike MA 1 16,300 100.0 % 100.0 % 60.53
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 100.0 % 73.06
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 100.0 % 28.87
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 100.0 % 67.57
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 100.0 % 47.83
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 100.0 % 71.66
Subtotal 27 4,870,571 79.2 % 80.2 % $ 57.74
Boston Office Total: 47 15,690,991 90.8 % 91.5 % $ 74.73
Residential
Hub50House (440 units) (50% ownership) 4 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,096
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,257 Q3 2023
--- ---
In-service property listing (continued) as of September 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 51 16,599,508
LOS ANGELES
Office
Colorado Center (50% ownership) 4 West Los Angeles CA 6 1,131,511 87.8 % 87.8 % $ 73.94
Santa Monica Business Park (55% ownership) 4 West Los Angeles CA 14 1,107,256 83.9 % 87.1 % 72.61
Santa Monica Business Park Retail (55% ownership) 4, 5 West Los Angeles CA 7 74,404 88.4 % 91.7 % 72.72
Subtotal 27 2,313,171 85.9 % 87.6 % $ 73.28
Los Angeles Total: 27 2,313,171 85.9 % 87.6 % $ 73.28
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,965,003 92.0 % 95.7 % $ 162.81
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,670,790 95.8 % 95.8 % 93.51
399 Park Avenue Park Avenue NY 1 1,577,544 99.9 % 100.0 % 101.81
599 Lexington Avenue Park Avenue NY 1 1,106,373 92.3 % 92.4 % 87.47
Times Square Tower (55% ownership) Times Square NY 1 1,238,461 95.6 % 95.6 % 80.54
250 West 55th Street Times Square / West Side NY 1 966,976 100.0 % 100.0 % 93.80
200 Fifth Avenue (26.69% ownership) 4, 6 Flatiron District NY 1 855,191 92.5 % 92.5 % 99.47
Dock 72 (50% ownership) 4 Brooklyn NY 1 668,625 42.4 % 42.4 % 50.46
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 98.7 % 98.7 % 133.44
Subtotal 9 10,404,052 92.1 % 92.8 % $ 106.42
510 Carnegie Center Princeton NJ 1 234,160 33.5 % 33.5 % $ 41.83
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 100.0 % 35.46
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 79.2 % 38.01
212 Carnegie Center Princeton NJ 1 148,942 61.8 % 71.8 % 38.05
214 Carnegie Center Princeton NJ 1 146,799 65.9 % 65.9 % 37.24
506 Carnegie Center Princeton NJ 1 139,050 82.1 % 82.1 % 39.58
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 100.0 % 41.87
202 Carnegie Center Princeton NJ 1 134,068 84.9 % 84.9 % 40.96
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 100.0 % 41.26
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 100.0 % 35.47
101 Carnegie Center Princeton NJ 1 121,619 100.0 % 100.0 % 38.93
502 Carnegie Center Princeton NJ 1 121,460 91.0 % 91.0 % 39.85
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 100.0 % 42.41
104 Carnegie Center Princeton NJ 1 102,930 63.8 % 63.8 % 39.59
103 Carnegie Center Princeton NJ 1 96,331 73.5 % 73.5 % 36.92
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 100.0 % 36.06
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 100.0 % 37.82
201 Carnegie Center Princeton NJ — 6,500 100.0 % 100.0 % 36.59
Subtotal 17 2,191,464 81.1 % 81.8 % $ 38.96
New York Total: 26 12,595,516 90.2 % 90.9 % $ 95.88
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % 100.0 % $ 112.41
Embarcadero Center Four CBD San Francisco CA 1 942,043 95.5 % 95.5 % 93.70
Embarcadero Center One CBD San Francisco CA 1 837,261 67.0 % 73.3 % 91.19
Embarcadero Center Two CBD San Francisco CA 1 801,766 86.9 % 86.9 % 87.74
Embarcadero Center Three CBD San Francisco CA 1 786,031 78.7 % 78.9 % 91.80 Q3 2023
--- ---
In-service property listing (continued) as of September 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 98.7 % 98.7 % 74.53
535 Mission Street CBD San Francisco CA 1 307,235 97.9 % 97.9 % 82.97
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 100.0 % 107.58
Subtotal 9 5,645,891 89.3 % 90.3 % $ 95.11
Gateway Commons (50% ownership) 4 South San Francisco CA 5 788,251 84.6 % 85.6 % $ 66.73
751 Gateway (49% ownership) 4, 6 South San Francisco CA 1 230,592 100.0 % 100.0 % 78.00
Mountain View Research Park Mountain View CA 15 542,264 65.4 % 65.4 % 70.91
2440 West El Camino Real Mountain View CA 1 142,789 71.5 % 71.5 % 97.00
453 Ravendale Drive Mountain View CA 1 29,620 100.0 % 100.0 % 51.50
North First Business Park 8 San Jose CA 5 190,636 87.6 % 87.6 % 24.07
Subtotal 28 1,924,152 80.6 % 81.0 % $ 66.50
San Francisco Office Total: 37 7,570,043 87.1 % 87.9 % $ 88.36
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 38 7,901,039
SEATTLE
Office
Safeco Plaza (33.67% ownership) 4 CBD Seattle WA 1 778,934 82.8 % 88.0 % $ 44.66
Madison Centre CBD Seattle WA 1 754,988 86.6 % 87.1 % 63.13
Subtotal 2 1,533,922 84.7 % 87.6 % $ 53.94
Seattle Total: 2 1,533,922 84.7 % 87.6 % $ 53.94
WASHINGTON, DC 9
Office
901 New York Avenue (25% ownership) 4 East End Washington DC 1 548,346 82.5 % 83.3 % $ 67.10
Market Square North (50% ownership) 4 East End Washington DC 1 418,549 77.0 % 79.2 % 70.25
2100 Pennsylvania Avenue 6 CBD Washington DC 1 475,849 65.3 % 93.0 % 61.64
2200 Pennsylvania Avenue CBD Washington DC 1 459,811 94.9 % 94.9 % 86.05
1330 Connecticut Avenue CBD Washington DC 1 253,579 87.4 % 87.4 % 70.66
Sumner Square CBD Washington DC 1 219,412 90.7 % 90.7 % 48.82
500 North Capitol Street, N.W. (30% ownership) 4 Capitol Hill Washington DC 1 230,900 98.5 % 98.5 % 82.65
Capital Gallery Southwest Washington DC 1 176,809 92.7 % 92.7 % 55.36
Subtotal 8 2,783,255 83.8 % 89.1 % $ 69.66
Reston Next 6 Reston VA 2 1,063,296 71.8 % 93.7 % $ 59.18
South of Market Reston VA 3 623,250 99.6 % 99.6 % 55.33
Fountain Square Reston VA 2 524,423 84.1 % 88.1 % 53.65
One Freedom Square Reston VA 1 427,956 85.1 % 85.1 % 54.95
Two Freedom Square Reston VA 1 423,222 100.0 % 100.0 % 52.11
One and Two Discovery Square Reston VA 2 366,989 89.7 % 89.7 % 52.08
One Reston Overlook Reston VA 1 319,519 89.7 % 89.7 % 48.12
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 100.0 % 71.42
Reston Corporate Center Reston VA 2 261,046 100.0 % 100.0 % 49.28
Democracy Tower Reston VA 1 259,441 99.3 % 99.3 % 65.18
Fountain Square Retail 5 Reston VA 1 198,172 82.5 % 86.7 % 52.10
Two Reston Overlook Reston VA 1 134,615 100.0 % 100.0 % 52.31
Avant Retail 5, 6 Reston VA 1 26,179 100.0 % 100.0 % 59.76
Subtotal 19 4,903,917 88.6 % 94.0 % $ 55.83 Q3 2023
--- ---
In-service property listing (continued) as of September 30, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
WASHINGTON, DC (continued)
7750 Wisconsin Avenue (50% ownership) 4 Bethesda/Chevy Chase MD 1 735,573 100.0 % 100.0 % $ 38.49
Wisconsin Place Office Montgomery County MD 1 301,327 67.1 % 67.8 % 42.85
Kingstowne Two Springfield VA 1 156,005 85.5 % 85.5 % 39.92
Kingstowne One Springfield VA 1 153,401 44.1 % 44.1 % 39.34
Kingstowne Retail 5 Springfield VA 1 88,288 100.0 % 100.0 % 31.36
Shady Grove Innovation District 8 North Rockville MD 2 133,651 72.2 % 72.2 % 18.00
Subtotal 7 1,568,245 84.4 % 84.5 % $ 37.37
Washington, DC Office Total: 34 9,255,417 86.5 % 90.9 % $ 56.77
Residential
Signature at Reston (508 units) Reston VA 1 517,783
Washington, DC Residential Total: 1 517,783
Washington, DC Total: 35 9,773,200
Total In-Service Properties: 9 179 50,716,356 88.8 % 10 90.4 % 10 $ 78.33 10
BXP’s Share of Total In-Service Properties: 3, 9 88.7 % 10 90.4 % 10

_____________

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

2Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. For additional detail, see pages 37-53.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

4This is an unconsolidated joint venture property.

5This is a retail property.

6 Not included in the Same Property analysis.

7On July 20, 2023, the Company completed and fully placed in-service 140 Kendrick Street - Building A, redevelopment project with approximately 104,000 net rentable square feet in Needham, Massachusetts. 140 Kendrick Street - Building A is not included in the Same Property analysis.

8Property held for redevelopment.

9Excludes Metropolitan Square located in Washington, DC. For details related to Metropolitan Square, see page 34.

10Excludes hotel and residential properties. For additional detail, see pages 19-20.

Q3 2023
Top 20 clients listing and portfolio client diversification

as of September 30, 2023

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 Salesforce 3.40 % 8.3
2 Google 2.81 % 13.6
3 Biogen 2.59 % 3.9
4 Akamai Technologies 2.09 % 11.1
5 Fannie Mae 1.52 % 13.9
6 Kirkland & Ellis 1.45 % 14.1
7 Ropes & Gray 1.43 % 6.6
8 Millennium Management 1.23 % 7.3
9 Wellington Management 1.22 % 12.4
10 WeWork 1.17 % 8.6
11 Microsoft 1.16 % 10.0
12 Weil Gotshal & Manges 1.10 % 10.6
13 Arnold & Porter Kaye Scholer 1.09 % 8.8
14 Shearman & Sterling 1.05 % 16.8
15 Bank of America 0.90 % 11.7
16 Snap 0.87 % 2.5
17 Morrison & Foerster 0.86 % 7.0
18 Leidos 0.84 % 9.6
19 Aramis (Estee Lauder) 0.82 % 16.5
20 Mass Financial Services 0.81 % 14.4
BXP’s Share of Annualized Rental Obligations 28.43 %
BXP’s Share of Square Feet 1 22.76 %
Weighted Average Remaining Lease Term (years) 10.1

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 290 Binney Street 566,000
The Broad Institute 300 Binney Street 225,000
Volkswagen Group of America Reston Next 200,000

CLIENT DIVERSIFICATION 2

chart-747cd986d10443908fda.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

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.

Q3 2023
Occupancy by location

as of September 30, 2023

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

CBD Suburban Total
Location 30-Sep-23 30-Jun-23 30-Sep-23 30-Jun-23 30-Sep-23 30-Jun-23
Boston 96.0 % 95.6 % 79.2 % 79.6 % 90.8 % 90.7 %
Los Angeles 85.9 % 86.0 % — % — % 85.9 % 86.0 %
New York 92.1 % 90.3 % 81.1 % 79.9 % 90.2 % 88.5 %
San Francisco 89.3 % 89.1 % 80.6 % 85.2 % 87.1 % 88.2 %
Seattle 84.7 % 87.9 % — % — % 84.7 % 87.9 %
Washington, DC 83.8 % 78.5 % 87.6 % 88.3 % 86.5 % 84.9 %
Total Portfolio 91.4 % 90.2 % 83.2 % 84.0 % 88.8 % 88.3 %

chart-7a2fe1931817407ca26a.jpg

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

CBD Suburban Total
Location 30-Sep-23 30-Sep-22 30-Sep-23 30-Sep-22 30-Sep-23 30-Sep-22
Boston 95.9 % 95.3 % 77.8 % 84.8 % 90.4 % 92.1 %
Los Angeles 85.9 % 90.0 % — % — % 85.9 % 90.0 %
New York 92.0 % 89.0 % 81.1 % 78.9 % 90.0 % 87.1 %
San Francisco 89.3 % 89.3 % 78.0 % 80.6 % 86.7 % 87.3 %
Seattle 84.7 % 89.1 % — % — % 84.7 % 89.1 %
Washington, DC 87.7 % 88.6 % 90.7 % 91.3 % 89.8 % 90.5 %
Total Portfolio 91.7 % 91.2 % 83.4 % 85.9 % 89.2 % 89.6 %

chart-face094e395546a9bb1a.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 55.

Q3 2023
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit —
Unsecured Term Loan 1,200,000
Unsecured Senior Notes, at face value 10,550,000
Outstanding Principal 15,050,000
Discount on Unsecured Senior Notes (14,027)
Deferred Financing Costs, Net (74,258)
Consolidated Debt $ 14,961,715

MORTGAGE NOTES PAYABLE

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

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10.5 Year Unsecured Senior Notes 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
5 Year Unsecured Senior Notes (“green bonds”) December 1, 2027 6.92% 6.75% 750,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
10.7 Year Unsecured Senior Notes (“green bonds”) January 15, 2034 6.62% 6.50% 750,000
$ 10,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,939 156,939 $ 9,334,732
Common Operating Partnership Units 18,582 18,582 1,105,257
Total Equity 175,521 $ 10,439,989
Consolidated Debt (A) $ 14,961,715
Add: BXP’s share of unconsolidated joint venture debt 3 1,518,195
Less: Partners’ share of consolidated debt 4 1,359,877
BXP’s Share of Debt 5 (B) $ 15,120,033
Consolidated Market Capitalization (C) $ 25,401,704
BXP’s Share of Market Capitalization 5 (D) $ 25,560,022
Consolidated Debt/Consolidated Market Capitalization (A÷C) 58.90 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 59.16 %

_____________

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

2Values are based on the September 29, 2023 closing price of $59.48 per share of BXP common stock.

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

4Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 32.

5See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

Q3 2023
Debt analysis 1

as of September 30, 2023

(dollars in thousands)

chart-8dca68f865614b5c89ea.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at September 30, 2023 Letters of Credit Remaining Capacity at September 30, 2023
Unsecured Line of Credit $ 1,815,000 $ — $ 6,727 $ 1,808,273

UNSECURED TERM LOAN - MATURES MAY 16, 2024 2, 3

Facility Outstanding at September 30, 2023
Unsecured Term Loan $ 1,200,000 $ 1,200,000

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 4 Maturity (years)
Unsecured Debt 3 78.10 % 4.01 % 4.12 % 4.9
Secured Debt 21.90 % 3.24 % 3.42 % 5.1
Consolidated Debt 100.00 % 3.84 % 3.97 % 4.9

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 4 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 3 100.00 % 3.84 % 3.97 % 4.9
Consolidated Debt 100.00 % 3.84 % 3.97 % 4.9

_____________

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

2The Unsecured Term Loan matures on May 16, 2024, with one, 12-month extension option, subject to customary conditions.

3On May 2, 2023, the Company entered into four interest rate swap contracts with notional amounts aggregating $1.2 billion to effectively fix Term SOFR, the reference rate for the Unsecured Term Loan, at a weighted-average rate of 4.6420% for the period commencing on May 4, 2023 and ending on May 16, 2024.

4The 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.

Q3 2023
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 September 30, 2023 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% 47.8 % 44.4 %
Secured Debt/Total Assets Less than 50% 14.4 % 13.4 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.22 3.22
Unencumbered Assets/ Unsecured Debt Greater than 150% 231.2 % 252.5 %

_____________

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.

Q3 2023
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
30-Sep-23 30-Jun-23
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 104,299
Add:
Noncontrolling interest - common units of the Operating Partnership (12,626) 12,117
Noncontrolling interest in property partnerships 20,909 19,768
Net income (loss) (103,543) 136,184
Add:
Interest expense 147,812 142,473
Depreciation and amortization expense 207,435 202,577
Less:
Gains on sales of real estate 517 —
Loss from unconsolidated joint ventures (247,556) (6,668)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 40,202 43,491
EBITDAre 1 538,945 531,393
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 51,102 49,497
BXP’s Share of EBITDAre 1 (A) 487,843 481,896
Add:
Stock-based compensation expense 4,843 14,935
BXP’s Share of straight-line ground rent expense adjustment 1 854 811
BXP’s Share of lease transaction costs that qualify as rent inducements 1 (5,963) 3,231
Less:
BXP’s Share of straight-line rent 1 16,647 24,927
BXP’s Share of fair value lease revenue 1 3,907 6,776
Amortization and accretion related to sales type lease 233 229
BXP’s Share of EBITDAre – cash 1 $ 466,790 $ 468,941
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,951,372 $ 1,927,584

Reconciliation of BXP’s Share of Net Debt 1

30-Sep-23 30-Jun-23
Consolidated debt $ 14,961,715 $ 15,456,205
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 882,647 1,581,575
Cash held in escrow for 1031 exchange — —
Net debt 1 14,079,068 13,874,630
Add:
BXP’s share of unconsolidated joint venture debt 2 1,518,195 1,609,671
Partners’ share of cash and cash equivalents from consolidated joint ventures 103,492 109,668
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 104,383 122,784
Partners’ share of consolidated joint venture debt 3 1,359,877 1,359,380
BXP’s share of related party note receivable 30,500 30,500
BXP’s Share of Net Debt 1 (B) $ 14,205,995 $ 14,081,305
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.28 7.31

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended September 30, 2023, see pages 34 and 63.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended September 30, 2023, see pages 32 and 61.

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

Q3 2023
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Sep-23 30-Jun-23
BXP’s Share of interest expense 1 $ 161,038 $ 155,004
Less:
BXP’s Share of hedge amortization, net of costs 1 (473) 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of amortization of financing costs 1 5,264 5,274
Adjusted interest expense excluding capitalized interest (A) 155,748 147,481
Add:
BXP’s Share of capitalized interest 1 11,582 12,387
Adjusted interest expense including capitalized interest (B) $ 167,330 $ 159,868
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 466,790 $ 468,941
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.00 3.18
Interest Coverage Ratio (including capitalized interest) (C÷B) 2.79 2.93

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Sep-23 30-Jun-23
BXP’s Share of interest expense 1 $ 161,038 $ 155,004
Less:
BXP’s Share of hedge amortization, net of costs 1 (473) 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of amortization of financing costs 1 5,264 5,274
Add:
BXP’s Share of capitalized interest 1 11,582 12,387
BXP’s Share of maintenance capital expenditures 1 16,995 24,132
Hotel improvements, equipment upgrades and replacements 141 306
Total Fixed Charges (A) $ 184,466 $ 184,306
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 466,790 $ 468,941
Fixed Charge Coverage Ratio (B÷A) 2.53 2.54

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

2For a quantitative reconciliation of BXP’s Share of EBITDAre – cash, see page 30.

Q3 2023
Consolidated joint ventures

d

as of September 30, 2023

(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
100 Federal Street
767 Fifth Avenue Atlantic Wharf Office Total Consolidated
ASSETS (The GM Building) 1 343 Madison Avenue 2 Joint Ventures
Real estate, net 3 $ 3,204,276 $ 2,440,518 $ 5,644,794
Cash and cash equivalents 99,919 141,164 241,083
Other assets 314,667 406,973 721,640
Total assets $ 3,618,862 $ 2,988,655 $ 6,607,517
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,287,109 $ 988,843 $ 3,275,952
Other liabilities 3 82,959 235,743 318,702
Total liabilities 2,370,068 1,224,586 3,594,654
Equity:
Boston Properties, Inc. 750,914 672,916 1,423,830
Noncontrolling interests 497,880 1,091,153 1,589,033 4
Total equity 1,248,794 1,764,069 3,012,863
Total liabilities and equity $ 3,618,862 $ 2,988,655 $ 6,607,517
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 5 $ 39,968 $ 63,524 $ 103,492
Partners’ share of consolidated debt 5 $ 914,898 6 $ 444,979 $ 1,359,877

_____________

1Certain balances contain amounts that eliminate in consolidation.

2See Land Parcels and Purchase Options section of this Supplemental package on page 16.

3On August 1, 2023, the Company recorded approximately $160.1 million and $134.5 million of Right of Use Assets – Operating Leases and Lease Liabilities – Operating Leases, respectively, related to the 99-year ground lease in New York City with the Metropolitan Square Transportation Authority. For additional details, see page 16.

4Amount excludes preferred shareholders’ capital of approximately $0.1 million.

5Amounts represent the partners’ share based on their respective ownership percentages.

6Amount adjusted for basis differentials.

Q3 2023
Consolidated joint ventures (continued)

for the three months ended September 30, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
100 Federal Street
767 Fifth Avenue Atlantic Wharf Office Total Consolidated
(The GM Building) 343 Madison Avenue 1 Joint Ventures
Revenue
Lease 2 $ 76,788 $ 100,329 $ 177,117
Straight-line rent 5,379 8,537 13,916
Fair value lease revenue 327 14 341
Termination income — 287 287
Total lease revenue 82,494 109,167 191,661
Parking and other — 2,400 2,400
Total rental revenue 3 82,494 111,567 194,061
Expenses
Operating 33,347 40,449 73,796
Net Operating Income (NOI) 49,147 71,118 120,265
Other income (expense)
Development and management services revenue — — —
Loss from investment in securities — (3) (3)
Interest and other income 1,092 1,651 2,743
Interest expense (21,355) (7,736) (29,091)
Depreciation and amortization expense (17,244) (23,661) (40,905)
General and administrative expense (76) (99) (175)
Total other income (expense) (37,583) (29,848) (67,431)
Net income $ 11,564 $ 41,270 $ 52,834

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
100 Federal Street
767 fifth Avenue Atlantic Wharf Office Total Consolidated
Reconciliation of Partners’ share of FFO (The GM Building) 343 Madison Avenue 1 Joint Ventures
Net income $ 11,564 $ 41,270 $ 52,834
Add: Depreciation and amortization expense 17,244 23,661 40,905
Entity FFO $ 28,808 $ 64,931 $ 93,739
Noncontrolling interest in property partnerships (Partners’ NCI) 4 $ 3,589 $ 17,320 $ 20,909
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 7,259 10,915 18,174
Partners’ share FFO 4 $ 10,848 $ 28,235 $ 39,083
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,975 $ 23,950 $ 31,925
Depreciation and amortization expense - BXP’s basis difference 58 389 447
BXP’s share of depreciation and amortization expense 9,927 12,357 22,284
BXP’s share of FFO $ 17,960 $ 36,696 $ 54,656

_____________

1 See Land Parcels and Purchase Options section of this Supplemental package on page 16.

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

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

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

Q3 2023
Unconsolidated joint ventures 1

as of September 30, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 58,174 166,570 September 5, 2024 6.80 % 6.95 %
Podium 50.00 % 46,811 76,546 September 8, 2025 7.35 % 7.75 %
Hub50House 50.00 % 45,413 91,906 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 12,033 — — — % — %
1265 Main Street 50.00 % 3,564 17,333 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 158,561 164,473 July 19, 2025 4.06 % 4.23 %
Colorado Center 50.00 % 237,286 274,655 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 27,021 — — — % — %
New York
Dock 72 50.00 % (12,195) 98,686 December 18, 2025 7.82 % 8.08 %
360 Park Avenue South 3, 4 42.21 % 59,979 92,353 December 14, 2024 7.83 % 8.28 %
200 Fifth Avenue 4 26.69 % 83,244 150,193 November 24, 2028 4.34 % 5.60 %
3 Hudson Boulevard 5 25.00 % 115,142 20,000 February 9, 2024 9.04 % 9.04 %
San Francisco
Platform 16 4 55.00 % 35,719 — — — % — %
Gateway Commons 50.00 % 362,995 — — — % — %
751 Gateway 49.00 % 90,733 — — — % — %
Seattle
Safeco Plaza 4, 6 33.67 % 42,330 83,841 September 1, 2026 4.82 % 4.96 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 50,442 125,661 April 26, 2024 6.68 % 6.83 %
1001 6th Street 50.00 % 44,506 — — — % — %
13100 & 13150 Worldgate Drive 50.00 % 17,428 — — — % — %
Market Square North 50.00 % (6,020) 62,259 November 10, 2025 7.74 % 7.92 %
Wisconsin Place Parking Facility 33.33 % 30,890 — — — % — %
500 North Capitol Street, N.W. 7 30.00 % (9,815) 31,104 June 5, 2026 6.83 % 7.16 %
901 New York Avenue 25.00 % (11,944) 52,116 January 5, 2025 3.61 % 3.69 %
Skymark - Reston Next Residential 20.00 % 14,551 10,499 May 13, 2026 7.33 % 7.65 %
Metropolitan Square 8 20.00 % — — — — % — %
1,496,848
Investments with deficit balances reflected within Other Liabilities 39,974
Investments in Unconsolidated Joint Ventures $ 1,536,822
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,518,195

chart-59e47d9326bc4df09c9a.jpg

Q3 2023
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 43.46 % 6.95 % 7.15 % 1.5
Fixed Rate Debt 56.54 % 4.35 % 4.67 % 6.4
Total Debt 100.00 % 5.48 % 5.75 % 4.3

_____________

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 and the effects of hedging transactions (if any).

3The Company’s partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests.

4The Company recognized non-cash impairment charges related to its investments in 360 Park Avenue South, 200 Fifth Avenue, Platform 16, and Safeco Plaza of approximately $54.0 million, $33.4 million, $155.2 million, and $29.9 million respectively in Q3 2023.

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

6Safeco Plaza entered into an interest rate cap agreement during Q3 2023 that capped SOFR at 2.50%.

7The indebtedness consists of (x) a $70.0 million mortgage loan payable (Note A) which bears interest at a fixed rate of 6.23% per annum, and (y) a $35.0 million mortgage loan payable (Note B) which bears interest at a fixed rate of 8.03% per annum. The Company provided $10.5 million (or 30%) of the Note B mortgage financing to the joint venture. The loan had been reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.

8A joint venture in which the Company owned a 20% equity interest (with an institutional investor owning the remaining 80%) completed a two-step restructuring of the ownership in Metropolitan Square, which resulted in (i) an affiliate of the existing mezzanine lender purchasing the property and becoming the new property owner, and the Company no longer having an equity interest in the property and (ii) an affiliate of the Company becoming a co-lender of up to $20.0 million under a new $100.0 million mezzanine loan (“New Mezz Loan”). Prior to the restructuring, the property was encumbered by an aggregate of $420.0 million of debt, consisting of a senior loan with an outstanding principal balance of $305.0 million (“Senior Loan”) and the existing $115.0 mezzanine loan (“Existing Mezz Loan”).

a.Step one of the restructuring was completed on September 13, 2023, and resulted in, among other things, (i) the cessation of the Company’s obligation to fund future investments through its then 20% equity interest, which caused the Company to recognize a gain on investment of approximately $35.8 million related to its deficit investment balance, which was primarily due to excess distributions, and (ii) the removal of the property from the Company’s in-service portfolio.

b.Step two of the restructuring was completed on October 2, 2023, and included (i) the sale of the property and assignment of the Senior Loan to the new owner, and (ii) the closing of a New Mezz Loan with a maximum principal amount of $100.0 million that is senior to the Existing Mezz Loan and subordinate only to the Senior Loan. The New Mezz Loan may be drawn upon for future lease-up, operating and other costs on an as needed basis, and amounts borrowed will bear interest at a per annum rate of 12%, compounded monthly. An affiliate of the Company will fund 20%, or up to $20.0 million, of any amounts borrowed under the New Mezz Loan. In addition, the Company will continue to provide property management and leasing services to the property with the potential to earn additional incentive fees. Metropolitan Square is a 657,000 square foot premier workplace located at 655 15th Street, NW in the heart of downtown Washington, DC.

Q3 2023
Unconsolidated joint ventures (continued)

for the three months ended September 30, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,452 $ 35,503 $ 23,703 $ 12,418 $ 6,781 $ 28,949 $ 131,806
Straight-line rent 1,883 (1,147) 1,125 1,274 526 4,002 7,663
Fair value lease revenue — 116 1,538 18 1,134 — 2,806
Termination income — 1,000 — — — — 1,000
Total lease revenue 26,335 35,472 26,366 13,710 8,441 32,951 143,275
Parking and other 1,072 3,771 69 304 467 1,794 7,477
Total rental revenue 3 27,407 39,243 26,435 14,014 8,908 34,745 150,752
Expenses
Operating 11,516 15,923 14,067 5,513 3,343 14,374 64,736
Net operating income/(loss) 15,891 23,320 12,368 8,501 5,565 20,371 86,016
Other income/(expense)
Development and management services revenue — — 596 — — — 596
Interest and other income 343 624 288 (5) 122 831 2,203
Interest expense (11,861) (11,964) (13,517) — (4,171) (19,224) (60,737)
Unrealized gain on derivative instruments — — 10,242 — — — 10,242
Transaction costs (47) — — — (31) — (78)
Depreciation and amortization expense (8,392) (12,294) (8,698) (5,118) (5,312) (10,026) (49,840)
General and administrative expense (130) (126) (120) — — (7) (383)
Total other income/(expense) (20,087) (23,760) (11,209) (5,123) (9,392) (28,426) (97,997)
Net income/(loss) $ (4,196) $ (440) $ 1,159 $ 3,378 $ (3,827) $ (8,055) $ (11,981)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (2,098) $ (460) $ (1,046) $ 1,678 $ (1,293) $ (1,257) 4 $ (4,476)
Basis differential
Straight-line rent $ — $ 90 5 $ 347 5 $ 7 5 $ — $ — $ 444
Fair value lease revenue — 301 5 117 5 (220) 5 — — 198
Fair value interest adjustment — — (499) — — — (499)
Amortization of financing costs — — 113 — — — 113
Unrealized gain on derivative instruments — — (2,734) — — — (2,734)
Depreciation and amortization expense (7) (1,088) 5 (2,019) 5 (506) 5 — (135) (3,755)
Gain on investment — — — — — 35,756 6 35,756
Impairment loss on investment 7 — — (87,436) (155,245) (29,922) — (272,603)
Total basis differential 8 (7) (697) 5 (92,111) 5 (155,964) 5 (29,922) 35,621 (243,080)
Income/(loss) from unconsolidated joint ventures (2,105) (1,157) (93,157) (154,286) (31,215) 34,364 4 (247,556)
Add:
BXP’s share of depreciation and amortization expense 4,203 7,582 5,108 3,061 1,788 3,924 4 25,666
Impairment loss on investment 7 — — 87,436 155,245 29,922 — 272,603
Less:
Gain on investment — — — — — 35,756 6 35,756
BXP’s share of FFO $ 2,098 $ 6,425 $ (613) $ 4,020 $ 495 $ 2,532 $ 14,957

_____________

1 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 21-24.

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

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

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

5 The Company’s purchase price allocation under ASC 805 for certain joint ventures differs from the historical basis of the venture.

6 See page 35 for more information.

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, see page 35.

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

Q3 2023
Lease expirations - All in-service properties1, 2, 3

as of September 30, 2023

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 970,452 54,742,763 63.10 2.20 % 4
2024 2,591,457 149,466,197 64.80 5.84 %
2025 2,937,629 180,425,987 72.10 6.33 %
2026 3,254,939 194,552,038 75.15 6.55 %
2027 2,285,845 154,274,163 75.01 5.21 %
2028 3,364,220 218,882,100 83.07 6.67 %
2029 3,699,494 233,120,992 71.45 8.26 %
2030 2,753,561 203,318,779 76.87 6.69 %
2031 2,190,019 159,654,611 83.39 4.85 %
2032 2,301,188 149,520,287 78.46 4.82 %
Thereafter 14,634,858 930,209,253 79.78 29.51 %

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
2023 93,566 7,209,593 78.07 3.90 % 4
2024 57,120 3,903,444 69.56 2.37 %
2025 121,912 8,271,274 78.49 4.45 %
2026 109,944 21,373,787 221.66 4.08 %
2027 127,249 13,285,522 113.71 4.94 %
2028 90,902 10,565,579 118.55 3.77 %
2029 140,200 13,179,873 112.55 4.95 %
2030 138,145 9,233,013 92.68 4.21 %
2031 61,245 4,531,739 85.56 2.24 %
2032 101,253 7,231,104 72.95 4.19 %
Thereafter 973,120 84,056,691 108.58 32.72 %

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
2023 1,064,018 61,952,356 64.54 2.29 % 4
2024 2,648,577 153,369,641 64.92 5.64 %
2025 3,059,541 188,697,261 72.36 6.23 %
2026 3,364,883 215,925,825 80.41 6.41 %
2027 2,413,094 167,559,685 77.09 5.19 %
2028 3,455,122 229,447,679 84.23 6.51 %
2029 3,839,694 246,300,865 72.87 8.07 %
2030 2,891,706 212,551,792 77.44 6.55 %
2031 2,251,264 164,186,350 83.45 4.70 %
2032 2,402,441 156,751,391 78.19 4.79 %
Thereafter 15,607,978 1,014,265,944 81.58 29.69 %

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 55.

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 clients 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.

Q3 2023
Lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 440,139 410,566 4
2024 517,524 478,249
2025 943,836 921,321
2026 811,480 778,618
2027 699,311 691,511
2028 998,452 982,861
2029 1,189,512 1,056,302
2030 1,473,271 1,466,598
2031 568,599 501,163
2032 527,583 527,583
Thereafter 5,103,197 4,158,383

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
2023 44,900 44,900
2024 16,335 16,335
2025 41,902 41,587
2026 26,513 26,513
2027 67,909 61,595
2028 43,451 43,451
2029 64,164 62,814
2030 92,892 57,592
2031 4,266 4,266
2032 65,011 64,420
Thereafter 454,430 380,107

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
2023 485,039 455,466 4
2024 533,859 494,584
2025 985,738 962,908
2026 837,993 805,131
2027 767,220 753,106
2028 1,041,903 1,026,312
2029 1,253,676 1,119,116
2030 1,566,163 1,524,190
2031 572,865 505,429
2032 592,594 592,003
Thereafter 5,557,627 4,538,490

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 55.

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 clients 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.

Q3 2023
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 181,904 181,904 4
Q4 2023 258,235 228,662
Total 2023 440,139 410,566
Q1 2024 143,914 115,644
Q2 2024 181,668 180,608
Q3 2024 54,451 44,507
Q4 2024 137,491 137,491
Total 2024 517,524 478,249

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 44,900 44,900
Total 2023 44,900 44,900
Q1 2024 2,902 2,902
Q2 2024 — —
Q3 2024 298 298
Q4 2024 13,135 13,135
Total 2024 16,335 16,335

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 2023 — —
Q2 2023 — —
Q3 2023 181,904 181,904 4
Q4 2023 303,135 273,562
Total 2023 485,039 455,466
Q1 2024 146,816 118,546
Q2 2024 181,668 180,608
Q3 2024 54,749 44,805
Q4 2024 150,626 150,626
Total 2024 533,859 494,584

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 55.

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 clients 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.

Q3 2023
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 4,668 2,567
2024 88,895 48,892
2025 12,255 6,740
2026 606,033 333,318
2027 28,614 15,738
2028 305,816 158,419
2029 418,301 212,570
2030 — —
2031 — —
2032 241,672 121,023
Thereafter 186,894 93,447

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
2023 — —
2024 2,000 1,000
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
2031 — —
2032 — —
Thereafter 17,993 8,997

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 4,668 2,567
2024 90,895 49,892
2025 29,473 16,121
2026 611,860 336,523
2027 28,614 15,738
2028 305,816 158,419
2029 456,419 233,535
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

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 55.

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 clients with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q3 2023
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 4,668 2,567
Total 2023 4,668 2,567
Q1 2024 41,335 22,734
Q2 2024 — —
Q3 2024 25,347 13,941
Q4 2024 22,213 12,217
Total 2024 88,895 48,892

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 — —
Q2 2024 — —
Q3 2024 2,000 1,000
Q4 2024 — —
Total 2024 2,000 1,000

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 4,668 2,567
Total 2023 4,668 2,567
Q1 2024 41,335 22,734
Q2 2024 — —
Q3 2024 27,347 14,941
Q4 2024 22,213 12,217
Total 2024 90,895 49,892

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 55.

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 clients with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q3 2023
Lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 58,300 35,587
2024 955,686 808,971
2025 937,759 627,062
2026 763,374 558,863
2027 398,606 339,700
2028 634,922 438,896
2029 836,817 804,359
2030 744,480 692,715
2031 397,288 347,169
2032 147,795 107,124
Thereafter 5,026,683 3,566,451

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
2023 11,965 11,226
2024 4,057 4,057
2025 4,179 4,179
2026 27,022 21,595
2027 — —
2028 2,424 647
2029 8,463 4,557
2030 2,895 2,053
2031 13,633 10,123
2032 12,182 10,643
Thereafter 264,893 155,240

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
2023 70,265 46,813
2024 959,743 813,028
2025 941,938 631,241
2026 790,396 580,458
2027 398,606 339,700
2028 637,346 439,543
2029 845,280 808,916
2030 747,375 694,768
2031 410,921 357,292
2032 159,977 117,767
Thereafter 5,291,576 3,721,691

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 55.

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 clients with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q3 2023
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 58,300 35,587
Total 2023 58,300 35,587
Q1 2024 299,768 297,192
Q2 2024 270,648 152,194
Q3 2024 191,741 172,221
Q4 2024 193,529 187,364
Total 2024 955,686 808,971

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 11,965 11,226
Total 2023 11,965 11,226
Q1 2024 1,140 1,140
Q2 2024 — —
Q3 2024 2,917 2,917
Q4 2024 — —
Total 2024 4,057 4,057

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 70,265 46,813
Total 2023 70,265 46,813
Q1 2024 300,908 298,332
Q2 2024 270,648 152,194
Q3 2024 194,658 175,138
Q4 2024 193,529 187,364
Total 2024 959,743 813,028

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 55.

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 clients with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

Q3 2023
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 227,127 192,258 4
2024 637,576 591,832
2025 719,599 690,647
2026 704,051 612,959
2027 526,211 515,247
2028 618,063 588,076
2029 353,181 334,897
2030 350,234 338,621
2031 1,071,855 927,547
2032 303,153 272,636
Thereafter 777,461 777,461

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
2023 19,506 19,506 4
2024 7,044 7,044
2025 27,142 27,142
2026 15,407 15,407
2027 13,794 13,794
2028 14,965 14,965
2029 3,403 3,403
2030 6,567 6,567
2031 14,256 10,902
2032 6,357 6,357
Thereafter 27,050 27,050

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
2023 246,633 211,764 85.36 4
2024 644,620 598,876
2025 746,741 717,789
2026 719,458 628,366
2027 540,005 529,041
2028 633,028 603,041
2029 356,584 338,300
2030 356,801 345,188
2031 1,086,111 938,449
2032 309,510 278,993
Thereafter 804,511 804,511

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 55.

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 clients 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.

Q3 2023
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 89,786 89,786 4
Q4 2023 137,341 102,472
Total 2023 227,127 192,258
Q1 2024 48,448 30,616
Q2 2024 290,878 273,202
Q3 2024 48,821 41,850
Q4 2024 249,429 246,165
Total 2024 637,576 591,832

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 2023 — —
Q2 2023 — —
Q3 2023 12,345 12,345 4
Q4 2023 7,161 7,161
Total 2023 19,506 19,506
Q1 2024 6,624 6,624
Q2 2024 — —
Q3 2024 — —
Q4 2024 420 420
Total 2024 7,044 7,044

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 2023 — —
Q2 2023 — —
Q3 2023 102,131 102,131 4
Q4 2023 144,502 109,633
Total 2023 246,633 211,764
Q1 2024 55,072 37,240
Q2 2024 290,878 273,202
Q3 2024 48,821 41,850
Q4 2024 249,849 246,585
Total 2024 644,620 598,876

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 55.

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 clients 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.

Q3 2023
Lease expirations - Seattle region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 107,566 95,446 4
2024 3,340 2,698
2025 32,959 16,876
2026 34,510 33,642
2027 76,817 73,898
2028 646,975 310,444
2029 254,663 234,605
2030 33,054 33,054
2031 4,742 1,597
2032 64,737 51,388
Thereafter 20,297 6,834

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
2023 — —
2024 — —
2025 — —
2026 3,686 1,241
2027 — —
2028 945 945
2029 1,040 350
2030 — —
2031 3,048 3,048
2032 — —
Thereafter — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 107,566 95,446 4
2024 3,340 2,698
2025 32,959 16,876
2026 38,196 34,883
2027 76,817 73,898
2028 647,920 311,389
2029 255,703 234,955
2030 33,054 33,054
2031 7,790 4,645
2032 64,737 51,388
Thereafter 20,297 6,834

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 55.

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 clients 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.

Q3 2023
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 22,189 22,189 4
Q4 2023 85,377 73,257
Total 2023 107,566 95,446
Q1 2024 — —
Q2 2024 — —
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 3,340 2,698

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 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 — —
Q2 2024 — —
Q3 2024 — —
Q4 2024 — —
Total 2024 — —

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 2023 — —
Q2 2023 — —
Q3 2023 22,189 22,189 4
Q4 2023 85,377 73,257
Total 2023 107,566 95,446
Q1 2024 — —
Q2 2024 — —
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 3,340 2,698

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 55.

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 clients 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.

Q3 2023
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 132,652 131,181 4
2024 388,436 375,795
2025 291,221 239,794
2026 335,491 271,421
2027 556,286 420,608
2028 159,992 156,247
2029 647,020 620,069
2030 152,522 114,097
2031 147,535 136,996
2032 1,016,248 825,988
Thereafter 3,520,326 3,056,646

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
2023 17,195 16,719 4
2024 27,684 27,684
2025 31,471 23,091
2026 31,489 28,465
2027 45,546 41,444
2028 29,117 29,117
2029 25,012 25,012
2030 30,508 30,508
2031 26,042 24,627
2032 17,703 17,703
Thereafter 208,754 202,746

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
Year of Lease
Expiration /PSF /PSF
2023 149,847 147,900 4
2024 416,120 403,479
2025 322,692 262,885
2026 366,980 299,886
2027 601,832 462,052
2028 189,109 185,364
2029 672,032 645,081
2030 183,030 144,605
2031 173,577 161,623
2032 1,033,951 843,691
Thereafter 3,729,080 3,259,392

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 55.

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 clients 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.

Q3 2023
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2023

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 2023 — —
Q2 2023 — —
Q3 2023 18,605 18,605 4
Q4 2023 114,047 112,576
Total 2023 132,652 131,181
Q1 2024 26,686 21,087
Q2 2024 28,173 28,173
Q3 2024 53,773 46,730
Q4 2024 279,804 279,804
Total 2024 388,436 375,795

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 2023 — —
Q2 2023 — —
Q3 2023 4,527 4,527 4
Q4 2023 12,668 12,192
Total 2023 17,195 16,719
Q1 2024 1,237 1,237
Q2 2024 14,584 14,584
Q3 2024 1,702 1,702
Q4 2024 10,161 10,161
Total 2024 27,684 27,684

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 2023 — —
Q2 2023 — —
Q3 2023 23,132 23,132 4
Q4 2023 126,715 124,768
Total 2023 149,847 147,900
Q1 2024 27,923 22,324
Q2 2024 42,757 42,757
Q3 2024 55,475 48,432
Q4 2024 289,965 289,965
Total 2024 416,120 403,479

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 55.

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 clients 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.

Q3 2023
Lease expirations - CBD properties 1, 2, 3

as of September 30, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 234,978 205,405 4
2024 188,424 149,149
2025 321,070 298,240
2026 586,892 554,030
2027 497,297 483,182
2028 788,704 773,113
2029 793,838 659,278
2030 1,386,156 1,344,183
2031 38,500 31,404
2032 439,405 438,814
Thereafter 5,037,677 4,018,540

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
2023 4,668 2,567
2024 90,895 49,892
2025 29,473 16,122
2026 611,860 336,523
2027 28,614 15,738
2028 305,816 158,419
2029 456,419 233,535
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

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
2023 69,389 45,937
2024 561,502 414,787
2025 688,670 377,973
2026 512,465 302,527
2027 200,551 141,645
2028 579,222 381,419
2029 655,479 619,115
2030 700,201 647,594
2031 249,645 196,016
2032 104,667 62,457
Thereafter 5,165,454 3,595,569

All values are in US Dollars.

Q3 2023
Lease expirations - CBD properties (continued) 1, 2, 3

as of September 30, 2023

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
2023 155,811 155,811 4
2024 517,397 517,397
2025 328,425 328,425
2026 501,677 501,677
2027 435,736 435,736
2028 540,064 540,064
2029 290,821 290,821
2030 281,046 281,046
2031 795,397 795,397
2032 248,475 248,475
Thereafter 804,511 804,511

All values are in US Dollars.

Seattle, WA

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 107,566 95,446 4
2024 3,340 2,698
2025 32,959 16,876
2026 38,196 34,883
2027 76,817 73,898
2028 647,920 311,389
2029 255,703 234,955
2030 33,054 33,054
2031 7,790 4,645
2032 64,737 51,388
Thereafter 20,297 6,834

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
2023 26,771 24,824
2024 34,143 21,502
2025 156,643 96,836
2026 169,935 102,841
2027 214,894 75,113
2028 74,058 70,313
2029 77,939 50,988
2030 72,929 34,504
2031 79,622 67,668
2032 537,435 347,175
Thereafter 857,195 755,293

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 55.

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 clients 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.

Q3 2023
Lease expirations - Suburban properties 1, 2, 3

as of September 30, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 250,061 250,061 4
2024 345,435 345,435
2025 664,668 664,668
2026 251,101 251,101
2027 269,923 269,923
2028 253,199 253,199
2029 459,838 459,838
2030 180,007 180,007
2031 534,365 474,025
2032 153,189 153,189
Thereafter 519,950 519,950

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
2023 876 876
2024 398,241 398,241
2025 253,268 253,268
2026 277,931 277,931
2027 198,055 198,055
2028 58,124 58,124
2029 189,801 189,801
2030 47,174 47,174
2031 161,276 161,276
2032 55,310 55,310
Thereafter 126,122 126,122

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
2023 90,822 55,953
2024 127,223 81,479
2025 418,316 389,364
2026 217,781 126,689
2027 104,269 93,305
2028 92,964 62,977
2029 65,763 47,479
2030 75,755 64,142
2031 290,714 143,051
2032 61,035 30,518
Thereafter — —

All values are in US Dollars.

Q3 2023
Lease expirations - Suburban properties (continued) 1, 2, 3

as of September 30, 2023

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
2023 123,076 123,076 4
2024 381,977 381,977
2025 166,049 166,049
2026 197,045 197,045
2027 386,938 386,938
2028 115,051 115,051
2029 594,093 594,093
2030 110,101 110,101
2031 93,955 93,955
2032 496,516 496,516
Thereafter 2,871,885 2,504,099

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 55.

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 clients 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.

Q3 2023
Research coverage

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

Equity Research Coverage
Argus Research Company Marie Ferguson 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Camille Bonnel 646.855.1363 / 416.369.2140
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Nicholas Joseph / Michael Griffin 212.816.1909 / 212.816.5871
Compass Point Research & Trading, LLC Floris van Dijkum 646.757.2621
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs Caitlin Burrows 212.902.4736
Green Street Advisors Dylan Burzinski 949.640.8780
Jefferies & Co. Jonathan Peterson 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
Keybanc Capital Market Todd Thomas/Upal Rana 917.368.2286 / 917.368.2316
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
Scotiabank GBM Nicholas Yulico 212.225.6904
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wedbush Richard Anderson 212.938.9949
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
--- --- ---
Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.410.1100 Rating Agencies
--- --- ---
Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q3 2023
--- ---
Definitions

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

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 59.

The Company may also present "BXP's Share" of certain operating metrics, such as occupancy and leased percentages based upon square footage. Amounts are calculated based on our consolidated portfolio square feet, plus our share of the square feet from the unconsolidated joint ventures properties (calculated based on our ownership percentage), minus our partners’ share of square feet from our consolidated joint venture properties (calculated based upon the partners’ percentage ownership interests).

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

Consolidated Debt to Consolidated Market Capitalization Ratio is a measure of leverage commonly used by analysts in the REIT sector that equals the quotient of (A) the Company’s Consolidated Debt divided by (B) the Company’s Consolidated Market Capitalization, presented as a percentage. Consolidated Market Capitalization is the sum of (x) the Company’s Consolidated Debt plus (y) the market value of the Company’s outstanding equity securities calculated using the closing price per share of common stock of the Company, as reported by the New York Stock Exchange, multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, (4) common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units, (6) common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units, (7) common units issuable upon conversion of 2015 MYLTIP Units that were issued in the form of LTIP Units, (8) common units issuable upon conversion of 2016 MYLTIP Units that were issued in the form of LTIP Units, (9) on and after February 6, 2020, which was the end of the performance period for 2017 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2017 MYLTIP Units that were issued in the form of LTIP Units, (10) on and after February 5, 2021, which was the end of the performance period for 2018 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2018 MYLTIP Units that were issued in the form of LTIP Units, (11) on and after February 4, 2022, which was the end of the performance period for 2019 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2019 MYLTIP Units and (12) on and after February 3, 2023, which was the end of the performance period for 2020 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2020 MYLTIP Units that were issued in the form of LTIP Units. The calculation of Consolidated Market Capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, 2021, 2022 and 2023 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

Q3 2023
Definitions (continued)

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.

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, the most directly comparable GAAP financial measure, plus net (income) loss 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 and sales-type leases. 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 income (loss) attributable to Boston Properties, Inc.

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

In addition to FFO, which is defined on the following page, the Company presents Funds Available for Distribution to common shareholders and common unitholders (FAD), which is a non-GAAP financial measure that is calculated by (1) adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (gains) from early extinguishments of debt, stock-based compensation expense, partners’ share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences) and unearned portion of capitalized fees, (2) eliminating the effects of straight-line rent, straight-line ground rent expense adjustment (excluding prepaid ground rent expense), hedge amortization, fair value interest adjustment, fair value lease revenue and amortization and accretion related to sales type lease receivable, 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 co determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

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

Q3 2023
Definitions (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties or a change in control, 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 or a change in control 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 (loss) attributable to Boston Properties, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

The Company treats a property as being “in-service” upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics, the Company specifies a single date for treating a property as “in-service,” which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In addition, under GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being “in-service,” and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company’s unconsolidated joint ventures. A property will no longer be considered “in-service” when the occupied percentage is below 50% and the Company is no longer actively leasing the property in anticipation of a future development/redevelopment.

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 client), fair value lease revenue, amortization and accretion related to sales type lease receivable, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense (excluding prepaid ground rent expense), stock-based compensation expense and lease transaction costs that qualify as rent inducements. Adjusted interest expense excluding capitalized interest is equal to BXP’s Share of interest expense less (1) BXP’s Share of hedge amortization, (2) BXP’s Share of fair value interest adjustment and (3) 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 (1) BXP’s Share of Debt is utilized instead of the Company’s consolidated debt after eliminating BXP’s Share of the related party note receivable and (2) BXP’s Share of cash is utilized instead of consolidated cash. 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.

Q3 2023
Definitions (continued)

Net Operating Income/(Loss) (NOI)

Net operating income/(loss) (NOI) is a non-GAAP financial measure equal to net income (loss) attributable to Boston Properties, Inc., the most directly comparable GAAP financial measure, plus (1) net (income) loss attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, depreciation and amortization expense, losses from early extinguishments of debt, 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, unrealized gain (loss) on non-real estate investment, interest and other income (loss), gain on sales-type lease and other income - assignment fee. 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 client), fair value lease revenue, amortization and accretion related to sales type lease, straight-line ground rent expense adjustment (excluding prepaid ground rent), prepaid ground rent expense and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

The Company uses these measures internally as performance measures and believes they provide useful information to investors regarding the Company’s results of operations and financial condition because, when compared across periods, they reflect the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization expense because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. Presenting NOI – cash allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues, amortization and accretion related to sales type lease receivable 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 and amortization and accretion related to sale type lease receivable 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 client’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the client’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 clients 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 client’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the client’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 21 - 24 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

Q3 2023
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Sep-23 30-Jun-23
Revenue $ 824,283 $ 817,153
Partners’ share of revenue from consolidated joint ventures (JVs) (83,203) (80,383)
BXP’s share of revenue from unconsolidated JVs 67,723 68,417
BXP’s Share of revenue $ 808,803 $ 805,187
Straight-line rent $ 19,139 $ 26,493
Partners’ share of straight-line rent from consolidated JVs (5,994) (4,641)
BXP’s share of straight-line rent from unconsolidated JVs 3,502 3,075
BXP’s Share of straight-line rent $ 16,647 $ 24,927
Fair value lease revenue 2 $ 2,981 $ 5,850
Partners’ share of fair value lease revenue from consolidated JVs 2 (137) (140)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 1,063 1,066
BXP’s Share of fair value lease revenue 2 $ 3,907 $ 6,776
Lease termination income $ 2,564 $ (164)
Partners’ share of termination income from consolidated JVs (129) 276
BXP’s share of termination income from unconsolidated JVs 500 3,113
BXP’s Share of termination income $ 2,935 $ 3,225
Non-cash termination income adjustment (fair value lease amounts) $ — $ —
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs — —
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs — —
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) $ — $ —
Parking and other revenue $ 29,649 $ 26,054
Partners’ share of parking and other revenue from consolidated JVs (1,080) (299)
BXP’s share of parking and other revenue from unconsolidated JVs 3,465 3,077
BXP’s Share of parking and other revenue $ 32,034 $ 28,832
Hedge amortization, net of costs $ 1,590 $ 1,590
Partners’ share of hedge amortization, net of costs from consolidated JVs (144) (144)
BXP’s share of hedge amortization, net of costs from unconsolidated JVs (1,919) 304
BXP’s Share of hedge amortization, net of costs $ (473) $ 1,750
Straight-line ground rent expense adjustment $ 713 $ 669
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 141 142
BXP’s Share of straight-line ground rent expense adjustment $ 854 $ 811
Depreciation and amortization $ 207,435 $ 202,577
Noncontrolling interests in property partnerships’ share of depreciation and amortization (18,174) (17,858)
BXP’s share of depreciation and amortization from unconsolidated JVs 25,666 25,756
BXP’s Share of depreciation and amortization $ 214,927 $ 210,475
Lease transaction costs that qualify as rent inducements 3 $ (5,943) $ 3,402
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (303) (279)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 283 108
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ (5,963) $ 3,231
2nd generation tenant improvements and leasing commissions $ 104,872 $ 49,500
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (25,715) (6,546)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 775 1,038
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 79,932 $ 43,992 Q3 2023
--- ---
Reconciliations (continued) Maintenance capital expenditures 4 $ 19,599 $ 29,015
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (2,695) (5,221)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 91 338
BXP’s Share of maintenance capital expenditures 4 $ 16,995 $ 24,132
Interest expense $ 147,812 $ 142,473
Partners’ share of interest expense from consolidated JVs (12,019) (11,871)
BXP’s share of interest expense from unconsolidated JVs 25,245 24,402
BXP’s Share of interest expense $ 161,038 $ 155,004
Capitalized interest $ 9,676 $ 10,564
Partners’ share of capitalized interest from consolidated JVs (16) (41)
BXP’s share of capitalized interest from unconsolidated JVs 1,922 1,864
BXP’s Share of capitalized interest $ 11,582 $ 12,387
Amortization of financing costs $ 5,121 $ 5,096
Partners’ share of amortization of financing costs from consolidated JVs (498) (498)
BXP’s share of amortization of financing costs from unconsolidated JVs 641 676
BXP’s Share of amortization of financing costs $ 5,264 $ 5,274
Fair value interest adjustment $ — $ —
Partners’ share of fair value of interest adjustment from consolidated JVs — —
BXP’s share off fair value interest adjustment from unconsolidated JVs 499 499
BXP’s Share of fair value interest adjustment $ 499 $ 499

_____________

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

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

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

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

Q3 2023
Reconciliations (continued)

for the three months ended September 30, 2023

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 100 Federal Street
767 Fifth Avenue Atlantic Wharf Office Total Consolidated
(The GM Building) 343 Madison Avenue 1 Joint Ventures
Revenue
Lease 2 $ 76,788 $ 100,329 $ 177,117
Straight-line rent 5,379 8,537 13,916
Fair value lease revenue 327 14 341
Termination income — 287 287
Total lease revenue 82,494 109,167 191,661
Parking and other — 2,400 2,400
Total rental revenue 3 82,494 111,567 194,061
Expenses
Operating 33,347 40,449 73,796
Net Operating Income (NOI) 49,147 71,118 120,265
Other income (expense)
Development and management services revenue — — —
Loss from investment in securities — (3) (3)
Interest and other income 1,092 1,651 2,743
Interest expense (21,355) (7,736) (29,091)
Depreciation and amortization expense (17,244) (23,661) (40,905)
General and administrative expense (76) (99) (175)
Total other income (expense) (37,583) (29,848) (67,431)
Net income $ 11,564 $ 41,270 $ 52,834
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 4 $ 18,983 $ 31,064 $ 50,047
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 30,164 $ 40,054 $ 70,218
Unearned portion of capitalized fees 5 $ 599 $ 684 $ 1,283
Partners’ share of select items 4
Partners’ share of parking and other revenue $ — $ 1,080 $ 1,080
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 152 $ 498
Partners’ share of depreciation and amortization related to capitalized fees $ 385 $ 443 $ 828
Partners’ share of capitalized interest $ 16 $ — $ 16
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (303) $ (303)
Partners’ share of management and other fees $ 678 $ 944 $ 1,622
Partners’ share of basis differential depreciation and amortization expense $ (23) $ (175) $ (198)
Partners’ share of basis differential interest and other adjustments $ (4) $ 40 $ 36
Reconciliation of Partners’ share of EBITDAre 6
Partners’ NCI $ 3,589 $ 17,320 $ 20,909
Add:
Partners’ share of interest expense after BXP’s basis differential 8,538 3,481 12,019
Partners’ share of depreciation and amortization expense after BXP’s basis differential 7,259 10,915 18,174
Partners’ share of EBITDAre $ 19,386 $ 31,716 $ 51,102
Q3 2023
--- ---
Reconciliations (continued)

for the three months ended September 30, 2023

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
100 Federal Street
767 Fifth Avenue Atlantic Wharf Office Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 6 (The GM Building) 343 Madison Avenue 1 Joint Ventures
Rental revenue 3 $ 32,998 $ 50,205 $ 83,203
Less: Termination income — 129 129
Rental revenue (excluding termination income) 3 32,998 50,076 83,074
Less: Operating expenses (including partners’ share of management and other fees) 14,015 19,141 33,156
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,983 $ 30,935 $ 49,918
Rental revenue (excluding termination income) 3 $ 32,998 $ 50,076 $ 83,074
Less: Straight-line rent 2,152 3,842 5,994
Fair value lease revenue 131 6 137
Add: Lease transaction costs that qualify as rent inducements — 303 303
Subtotal 30,715 46,531 77,246
Less: Operating expenses (including partners’ share of management and other fees) 14,015 19,141 33,156
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,700 $ 27,390 $ 44,090
Reconciliation of Partners’ share of Revenue 4
Rental revenue 3 $ 32,998 $ 50,205 $ 83,203
Add: Development and management services revenue — — —
Revenue $ 32,998 $ 50,205 $ 83,203

_________

1See Land Parcels and Purchase Options section of this Supplemental package on page 16.

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

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

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

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

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

Q3 2023
Reconciliations (continued)

for the three months ended September 30, 2023

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,452 $ 35,503 $ 23,703 $ 12,418 $ 6,781 $ 28,949 $ 131,806
Straight-line rent 1,883 (1,147) 1,125 1,274 526 4,002 7,663
Fair value lease revenue — 116 1,538 18 1,134 — 2,806
Termination income — 1,000 — — — — 1,000
Total lease revenue 26,335 35,472 26,366 13,710 8,441 32,951 143,275
Parking and other 1,072 3,771 69 304 467 1,794 7,477
Total rental revenue 3 27,407 39,243 26,435 14,014 8,908 34,745 150,752
Expenses
Operating 11,516 15,923 14,067 4 5,513 3,343 14,374 64,736
Net operating income/(loss) 15,891 23,320 12,368 8,501 5,565 20,371 86,016
Other income/(expense)
Development and management services revenue — — 596 — — — 596
Interest and other income 343 624 288 (5) 122 831 2,203
Interest expense (11,861) (11,964) (13,517) — (4,171) (19,224) (60,737)
Unrealized gain on derivative instruments — — 10,242 — — — 10,242
Transaction costs (47) — — — (31) — (78)
Depreciation and amortization expense (8,392) (12,294) (8,698) (5,118) (5,312) (10,026) (49,840)
General and administrative expense (130) (126) (120) — — (7) (383)
Total other income/(expense) (20,087) (23,760) (11,209) (5,123) (9,392) (28,426) (97,997)
Net income/(loss) $ (4,196) $ (440) $ 1,159 $ 3,378 $ (3,827) $ (8,055) $ (11,981)
BXP’s share of select items:
BXP’s share of parking and other revenue $ 536 $ 1,967 $ 31 $ 152 $ 157 $ 622 5 $ 3,465
BXP’s share of amortization of financing costs $ 163 $ 96 $ 65 $ — $ 28 $ 289 5 $ 641
BXP’s share of hedge amortization, net of costs $ — $ — $ — $ — $ (1,971) $ 52 $ (1,919)
BXP’s share of fair value interest adjustment $ — $ — $ 499 $ — $ — $ — $ 499
BXP’s share of capitalized interest $ — $ — $ 1,753 $ — $ — $ 169 5 $ 1,922
Reconciliation of BXP’s share of EBITDAre
Income/(loss) from unconsolidated joint ventures $ (2,105) $ (1,157) $ (93,157) $ (154,286) $ (31,215) $ 34,364 5 $ (247,556)
Add:
BXP’s share of interest expense 5,931 6,328 4,901 — 1,404 6,681 5 25,245
BXP’s share of depreciation and amortization expense 4,203 7,582 6 5,108 3,061 6 1,788 3,924 5 25,666
Impairment loss on investment 7 — — 87,436 155,245 29,922 — 272,603
Less:
Gain on investment — — — — — 35,756 8 35,756
BXP’s share of EBITDAre $ 8,029 $ 12,753 6 $ 4,288 $ 4,020 6 $ 1,899 $ 9,213 5 $ 40,202 Q3 2023
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 13,704 $ 20,896 6 $ 8,591 6 $ 6,780 6 $ 2,999 $ 14,455 5 $ 67,425
BXP’s share of operating expenses 5,758 8,388 4,653 2,757 1,125 5,579 5 28,260
BXP’s share of net operating income/(loss) 7,946 12,508 6 3,938 6 4,023 6 1,874 8,876 5 39,165
Less:
BXP’s share of termination income — 500 — — — — 500
BXP’s share of net operating income/(loss) (excluding termination income) 7,946 12,008 3,938 4,023 1,874 8,876 5 38,665
Less:
BXP’s share of straight-line rent 942 (531) 6 941 6 629 6 177 1,344 5 3,502
BXP’s share of fair value lease revenue — 365 6 527 6 (211) 6 382 — 1,063
Add:
BXP’s share of straight-line ground rent expense adjustment — — 141 — — — 141
BXP’s share of lease transaction costs that qualify as rent inducements — — 122 — — 161 5 283
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 7,004 $ 12,174 6 $ 2,733 6 $ 3,605 6 $ 1,315 $ 7,693 5 $ 34,524
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 13,704 $ 20,896 6 $ 8,591 6 $ 6,780 6 $ 2,999 $ 14,455 5 $ 67,425
Add:
BXP’s share of development and management services revenue — — 298 — — — 298
BXP’s share of revenue $ 13,704 $ 20,896 6 $ 8,889 6 $ 6,780 6 $ 2,999 $ 14,455 5 $ 67,723

_____________

1 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 21-24.

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

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 55.

4 Includes approximately $282 of straight-line ground rent expense.

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

6 The Company’s purchase price allocation under ASC 805 for certain joint ventures differs from the historical basis of the 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, see page 35.

8 See page 35 for more information.

Q3 2023
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Jun-23 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 104,299 $ 222,989
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,117 25,708
Noncontrolling interest in property partnerships 19,768 18,546
Net income 136,184 267,243
Add:
Interest expense 142,473 104,142
Depreciation and amortization expense 202,577 183,146
Transaction costs 308 496
Payroll and related costs from management services contracts 4,609 3,239
General and administrative expense 44,175 34,665
Less:
Other income - assignment fee — 6,624
Interest and other income (loss) 17,343 1,195
Unrealized gain on non-real estate investment 124 —
Gains (losses) from investments in securities 1,571 (4,716)
Loss from unconsolidated joint ventures (6,668) (54)
Gains on sales of real estate — 96,247
Direct reimbursements of payroll and related costs from management services contracts 4,609 3,239
Development and management services revenue 9,858 6,354
Net Operating Income (NOI) 503,489 484,042
Add:
BXP’s share of NOI from unconsolidated joint ventures 42,254 35,710
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,958 47,862
BXP’s Share of NOI 497,785 471,890
Less:
Termination income (164) 1,922
BXP’s share of termination income from unconsolidated joint ventures 3,113 (1)
Add:
Partners’ share of termination income from consolidated joint ventures (276) 641
BXP’s Share of NOI (excluding termination income) $ 494,560 $ 470,610
Net Operating Income (NOI) $ 503,489 $ 484,042
Less:
Termination income (164) 1,922
NOI from non Same Properties (excluding termination income) 47,480 26,993
Same Property NOI (excluding termination income) 456,173 455,127
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 48,234 47,221
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 39,141 35,711
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3,681 248
BXP’s Share of Same Property NOI (excluding termination income) $ 443,399 $ 443,369
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 30
Change in BXP’s Share of Same Property NOI (excluding termination income) — %
Q3 2023
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Jun-23 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 104,299 $ 222,989
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,117 25,708
Noncontrolling interest in property partnerships 19,768 18,546
Net income 136,184 267,243
Add:
Interest expense 142,473 104,142
Depreciation and amortization expense 202,577 183,146
Transaction costs 308 496
Payroll and related costs from management services contracts 4,609 3,239
General and administrative expense 44,175 34,665
Less:
Other income - assignment fee — 6,624
Interest and other income (loss) 17,343 1,195
Unrealized gain on non-real estate investment 124 —
Gains (losses) from investments in securities 1,571 (4,716)
Loss from unconsolidated joint ventures (6,668) (54)
Gains on sales of real estate — 96,247
Direct reimbursements of payroll and related costs from management services contracts 4,609 3,239
Development and management services revenue 9,858 6,354
Net Operating Income (NOI) 503,489 484,042
Less:
Straight-line rent 26,493 21,601
Fair value lease revenue 5,850 1,919
Amortization and accretion related to sales type lease 229 —
Termination income (164) 1,922
Add:
Straight-line ground rent expense adjustment 1 578 631
Lease transaction costs that qualify as rent inducements 2 3,402 4,452
NOI - cash (excluding termination income) 475,061 463,683
Less:
NOI - cash from non Same Properties (excluding termination income) 34,102 22,510
Same Property NOI - cash (excluding termination income) 440,959 441,173
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 43,732 46,996
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) — —
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 35,250 26,426
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 2,832 248
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 429,645 $ 420,355
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 9,290
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 2.2 %

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $91 and $115 for the three months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company has remaining lease payments aggregating approximately $24.4 million, all of which it expects to incur by the end of 2025 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 2025 may vary significantly.

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

Q3 2023
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Sep-22 30-Jun-22
Revenue
Lease $ 739,255 $ 721,899
Parking and other 26,259 26,474
Insurance proceeds 1,895 3,872
Hotel revenue 11,749 12,089
Development and management services 7,465 6,354
Direct reimbursements of payroll and related costs from management services contracts 3,900 3,239
Total revenue 790,523 773,927
Expenses
Operating 145,083 137,531
Real estate taxes 135,670 132,056
Demolition costs — —
Restoration expenses related to insurance claim 949 4,261
Hotel operating 8,548 6,444
General and administrative 32,519 34,665
Payroll and related costs from management services contracts 3,900 3,239
Transaction costs 1,650 496
Depreciation and amortization 190,675 183,146
Total expenses 518,994 501,838
Other income (expense)
Loss from unconsolidated joint ventures (3,524) (54)
Gains on sales of real estate 262,345 96,247
Losses from investments in securities (1,571) (4,716)
Interest and other income (loss) 3,728 1,195
Other income - assignment fee — 6,624
Interest expense (111,846) (104,142)
Net income 420,661 267,243
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,801) (18,546)
Noncontrolling interest - common units of the Operating Partnership (40,883) (25,708)
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 2.30 $ 1.42
Net income attributable to Boston Properties, Inc. per share - diluted $ 2.29 $ 1.42

67

Document

Exhibit 99.2

bxp-colora.gif

BXP ANNOUNCES THIRD QUARTER 2023 RESULTS

Executed More Than 1.0 Million Square Feet of Leases in Q3 and

Delivered Two Development Properties

BOSTON, MA, November 1, 2023 - BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the third quarter ended September 30, 2023.

Financial highlights for the third quarter include:

•Revenue increased 4.3% to $824.3 million for the quarter ended September 30, 2023, compared to $790.5 million for the quarter ended September 30, 2022.

•Net income (loss) attributable to Boston Properties, Inc. of $(111.8) million, or $(0.71) per diluted share (EPS), for the quarter ended September 30, 2023, compared to $361.0 million, or $2.29 per diluted share, for the quarter ended September 30, 2022. The decrease compared to Q3 2022 is primarily due to:

◦recognition of $262.3 million in gains on sales of real estate that occurred in Q3 2022, that did not recur in Q3 2023;

◦recording non-cash net losses from investments in unconsolidated joint ventures of $236.8 million in Q3 2023, due to an impairment charge totaling approximately $272.6 million, partially offset by a gain of $35.8 million;

◦greater depreciation and amortization expense of $16.8 million in Q3 2023 primarily due to asset acquisitions in Q2 and Q3 of 2022; and

◦greater interest expenses, net of an increase in interest income, of $19.0 million;

◦offset by (1) a lower allocation of noncontrolling interest-common units in Boston Properties Limited Partnership, the operating partnership (“BPLP”), of $53.5 million and (2) greater contributions from portfolio operations of approximately $13.0 million in Q3 2023.

•EPS for the third quarter fell short of the mid-point of BXP’s guidance by $1.35 per diluted share primarily due to a $1.56 per diluted share non-cash impairment charge related to BXP’s investments in the unconsolidated joint ventures that own Platform 16, Safeco Plaza, 200 Fifth Avenue and 360 Park Avenue South, partially offset by $0.20 per share gain on the restructuring of BXP’s interest in its Metropolitan Square investment.

•Funds from Operations (FFO) of $292.8 million, or $1.86 per diluted share, for the quarter ended September 30, 2023, compared to FFO of $299.8 million, or $1.91 per diluted share, for the quarter ended September 30, 2022. The decrease compared to Q3 2022 is primarily due to greater interest expenses, net of an increase in interest income, of $19.0 million, partially offset by greater contributions from portfolio operations of approximately $13.0 million.

–more–

•FFO per diluted share exceeded the mid-points of BXP’s guidance by $0.02 per share, as a result of better-than-projected portfolio performance.

BXP also provided updated guidance for full year 2023 EPS of $1.05 - $1.07 and FFO of $7.25 - $7.27 per diluted share. Changes to our prior guidance includes higher projected portfolio NOI offset by higher net interest expense from recent financing activities.

See “EPS and FFO per Share Guidance” below.

Third quarter and recent business highlights include:

•Executed approximately 1.06 million square feet of leases with a weighted-average lease term of 8.2 years.

•Delivered two development projects:

◦Completed and fully placed in-service the redevelopment of 140 Kendrick Street - Building A, a 104,000 square foot property in Needham, Massachusetts. 140 Kendrick is the first Net Zero, Carbon Neutral office repositioning of this scale in Massachusetts. The property is 100% leased.

◦Completed and fully placed in-service 751 Gateway, a 231,000 square foot laboratory/life sciences property in South San Francisco, California in which BXP has a 49% interest. The property is 100% leased.

•Further strengthened BXP’s balance sheet by addressing the remaining 2023 debt maturities, and sourcing additional liquidity in the bank market. Notable transactions include:

◦A joint venture in which BXP has a 50% interest exercised an option to extend by one year the maturity date of its loan collateralized by 100 Causeway in Boston, Massachusetts. The 634,000 square foot premier workplace is 95% leased. After making an approximately $4.0 million principal repayment, the modified and extended loan has an outstanding balance of $336.6 million and the interest rate was reduced from Term SOFR plus 1.60% to Term SOFR plus 1.48% per annum. The loan now matures on September 5, 2024, with a one-year extension option, subject to certain conditions.

◦A joint venture in which BXP has a 50% interest modified the loan collateralized by its Hub on Causeway - Podium property located in Boston, Massachusetts. The modified loan now matures on September 8, 2025, with a one-year extension option, subject to certain conditions. After making an approximately $20.0 million repayment, the modified and extended loan has an outstanding balance of $154.3 million. The interest rate changed from Term SOFR plus 2.35% per annum to Daily Simple SOFR plus 2.50% per annum. The joint venture entered into interest rate swap contracts resulting in a weighted-average fixed rate of approximately 7.35% per annum through September 8, 2025.

◦A joint venture in which BXP has a 25% interest, exercised its second extension option with the lender, an affiliate of BXP, of the land loan collateralized by its land and improvements at its 3 Hudson Boulevard property located in New York, New York. The land loan now matures on February 9, 2024.

◦BPLP completed the repayment of $500.0 million in aggregate principal amount of its 3.125% senior notes due September 1, 2023 using available cash. The repayment

–more–

price was approximately $507.8 million, which included the entire principal amount plus approximately $7.8 million of accrued and unpaid interest.

◦BPLP increased the current maximum borrowing amount of its 2021 Revolving Credit Facility from $1.5 billion to $1.815 billion by adding three new lenders to the Facility. All other terms of the 2021 Credit Facility, including its expiration date of June 15, 2026, remain unchanged. BPLP has no current borrowings under the Facility.

◦A joint venture in which BXP owned a 20% equity interest (with an institutional investor owning the remaining 80%) completed a restructuring of the ownership in Metropolitan Square, which resulted in (i) an affiliate of the existing mezzanine lender purchasing the property, and (ii) BXP becoming a co-lender of up to $20.0 million under a new $100.0 million mezzanine loan. The transaction also resulted in, among other things, (i) the cessation of BXP’s obligation to fund future investments through its then 20% equity interest, which caused BXP to recognize a third quarter gain on investment of approximately $35.8 million related to its deficit investment balance, and (ii) the removal of the property from BXP’s in-service portfolio. Prior to the restructuring, the property was encumbered by an aggregate of $420.0 million of debt, consisting of a senior loan with an outstanding principal balance of $305.0 million (“Senior Loan”) and the existing $115.0 million mezzanine loan. The new mezzanine loan, which is subordinate only to the Senior Loan, may be drawn upon for future lease-up, operating and other costs on an as needed basis, and amounts borrowed will bear interest at a per annum rate of 12%, compounded monthly. In addition, BXP will continue to provide property management and leasing services to the property with the potential to earn additional incentive fees. Metropolitan Square is a 654,000 square foot premier workplace located at 655 15th Street, NW in the heart of downtown Washington, DC.

◦On October 26, 2023, BXP closed on a mortgage loan collateralized by its 325 Main Street, 355 Main Street, and 90 Broadway properties located in Cambridge, Massachusetts. The mortgage loan, totaling $600 million, requires interest-only payments at Daily Simple SOFR plus a 2.25% per annum until maturity on October 26, 2028. BXP intends to use the net proceeds from this financing and available cash to repay the $700 million senior unsecured notes due February 1, 2024.

•BXP entered into a joint venture agreement with an institutional investor for the future development of 343 Madison Avenue located on Madison Avenue between 44th and 45th Streets in New York City, New York adjacent to Grand Central Station. BXP owns a 55% interest in the venture and its partner owns a 45% interest, and BXP will provide customary development, property management, and leasing services. The 343 Madison Avenue project contemplates the construction of (1) a direct entrance to the Long Island Railroad’s new east side access project (“Grand Central Madison”) (“Phase 1”) and (2) an approximately 900,000 square foot premier workplace building with ground floor retail (“Phase 2”). The joint venture executed a 99-year ground lease with the Metropolitan Transportation Authority for the approximately 25,000 square foot site. The ground lease requires the joint venture to construct Phase 1 of the development project. The joint venture has the option until July 31, 2025 to terminate the ground lease prior to construction of the new building and receive reimbursement for the cost of the construction of the east side access to Grand Central Station. There can be no assurance that Phase 1 will be completed on the terms currently contemplated or that Phase 2 of the development project will commence on the terms currently contemplated or at all.

–more–

•Continued BXP’s leadership and ongoing commitment to sustainability and impact and earned a top ESG rating in the 2023 GRESB® assessment. BXP earned its 12th consecutive “Green Star” recognition and the highest GRESB 5-star rating, as well as an “A” level disclosure score. BXP also achieved the highest scores in several categories, including Data Monitoring & Review, Targets, Policies, Reporting, and Stakeholder Engagement. BXP achieved second place within its Development Peer Group, third place in its Standing Investments Peer Group, and fourth overall among U.S. listed participants.

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended September 30, 2023. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

BXP’s guidance for the full year 2023 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, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Full Year 2023
Low High
Projected EPS (diluted) $ 1.05 $ 1.07
Add:
Projected Company share of real estate depreciation and amortization 4.85 4.85
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments 1.35 1.35
Projected FFO per share (diluted) $ 7.25 $ 7.27

BXP will host a conference call on Thursday, November 2, 2023 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2023 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BI258f07a8cd3f4d07bee856df6e1462c2 to receive the dial-in numbers and unique PIN to

–more–

access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.

Additionally, a copy of BXP’s third quarter 2023 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 53.5 million square feet and 190 properties, including 11 properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increasing interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease, on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), 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 BXP’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
September 30, 2023 December 31, 2022
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 24,809,369 $ 24,261,588
Construction in progress 551,330 406,574
Land held for future development 670,691 721,501
Right of use assets - finance leases 237,532 237,510
Right of use assets - operating leases 322,790 167,351
Less: accumulated depreciation (6,723,616) (6,298,082)
Total real estate 19,868,096 19,496,442
Cash and cash equivalents 882,647 690,333
Cash held in escrows 47,741 46,479
Investments in securities 32,809 32,277
Tenant and other receivables, net 123,138 81,389
Related party note receivable, net 88,807 78,576
Sales-type lease receivable, net 13,475 12,811
Accrued rental income, net 1,331,796 1,276,580
Deferred charges, net 692,386 733,282
Prepaid expenses and other assets 121,431 43,589
Investments in unconsolidated joint ventures 1,536,822 1,715,911
Total assets $ 24,739,148 $ 24,207,669
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,275,974 $ 3,272,368
Unsecured senior notes, net 10,488,568 10,237,968
Unsecured line of credit — —
Unsecured term loan, net 1,197,173 730,000
Lease liabilities - finance leases 253,178 249,335
Lease liabilities - operating leases 341,299 204,686
Accounts payable and accrued expenses 462,240 417,545
Dividends and distributions payable 171,916 170,643
Accrued interest payable 128,422 103,774
Other liabilities 380,014 450,918
Total liabilities 16,698,784 15,837,237
Commitments and contingencies — —
Redeemable deferred stock units 6,788 6,613
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 157,018,080 and 156,836,767 issued and 156,939,180 and 156,757,867 outstanding at September 30, 2023 and December 31, 2022, respectively 1,569 1,568
Additional paid-in capital 6,568,645 6,539,147
Dividends in excess of earnings (782,275) (391,356)
Treasury common stock at cost, 78,900 shares at September 30, 2023 and December 31, 2022 (2,722) (2,722)
Accumulated other comprehensive income (loss) 2,866 (13,718)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,788,083 6,132,919
Noncontrolling interests:
Common units of the Operating Partnership 656,587 683,583
Property partnerships 1,588,906 1,547,317
Total equity 8,033,576 8,363,819
Total liabilities and equity $ 24,739,148 $ 24,207,669

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Revenue
Lease $ 767,181 $ 739,255 $ 2,285,789 $ 2,179,274
Parking and other 30,428 28,154 81,421 80,234
Hotel 13,484 11,749 35,554 28,395
Development and management services 9,284 7,465 28,122 19,650
Direct reimbursements of payroll and related costs from management services contracts 3,906 3,900 13,750 11,204
Total revenue 824,283 790,523 2,444,636 2,318,757
Expenses
Operating
Rental 300,192 281,702 882,536 825,805
Hotel 9,020 8,548 23,852 19,832
General and administrative 31,410 32,519 131,387 110,378
Payroll and related costs from management services contracts 3,906 3,900 13,750 11,204
Transaction costs 751 1,650 1,970 2,146
Depreciation and amortization 207,435 190,675 618,746 551,445
Total expenses 552,714 518,994 1,672,241 1,520,810
Other income (expense)
Loss from unconsolidated joint ventures (247,556) (3,524) (261,793) (1,389)
Gains on sales of real estate 517 262,345 517 381,293
Interest and other income (loss) 20,715 3,728 48,999 6,151
Other income - assignment fee — — — 6,624
Gains (losses) from investments in securities (925) (1,571) 2,311 (8,549)
Unrealized gain (loss) on non-real estate investment (51) — 332 —
Interest expense (147,812) (111,846) (424,492) (317,216)
Net income (loss) (103,543) 420,661 138,269 864,861
Net (income) loss attributable to noncontrolling interests
Noncontrolling interests in property partnerships (20,909) (18,801) (59,337) (54,896)
Noncontrolling interest—common units of the Operating Partnership 12,626 (40,883) (8,642) (82,821)
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977 $ 70,290 $ 727,144
Basic earnings per common share attributable to Boston Properties, Inc.
Net income (loss) $ (0.71) $ 2.30 $ 0.45 $ 4.63
Weighted average number of common shares outstanding 156,880 156,754 156,837 156,708
Diluted earnings per common share attributable to Boston Properties, Inc.
Net income (loss) $ (0.71) $ 2.29 $ 0.45 $ 4.62
Weighted average number of common and common equivalent shares outstanding 156,880 157,133 157,177 157,144

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977 $ 70,290 $ 727,144
Add:
Noncontrolling interest - common units of the Operating Partnership (12,626) 40,883 8,642 82,821
Noncontrolling interests in property partnerships 20,909 18,801 59,337 54,896
Net income (loss) (103,543) 420,661 138,269 864,861
Add:
Depreciation and amortization expense 207,435 190,675 618,746 551,445
Noncontrolling interests in property partnerships’ share of depreciation and amortization (18,174) (17,706) (53,743) (52,773)
Company’s share of depreciation and amortization from unconsolidated joint ventures 25,666 21,485 77,067 64,649
Corporate-related depreciation and amortization (446) (431) (1,357) (1,248)
Impairment losses included within loss from unconsolidated joint ventures 272,603 — 272,603 —
Less:
Gains on sales of real estate 517 262,345 517 381,293
Gain on investment included within loss from unconsolidated joint ventures 35,756 — 35,756 —
Unrealized gain (loss) on non-real estate investment (51) — 332 —
Noncontrolling interests in property partnerships 20,909 18,801 59,337 54,896
Funds from operations (FFO) attributable to the Operating Partnership (including Boston Properties, Inc.) 326,410 333,538 955,643 990,745
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 33,588 33,787 98,049 100,164
Funds from operations attributable to Boston Properties, Inc. $ 292,822 $ 299,751 $ 857,594 $ 890,581
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.71 % 89.87 % 89.74 % 89.89 %
Weighted average shares outstanding - basic 156,880 156,754 156,837 156,708
FFO per share basic $ 1.87 $ 1.91 $ 5.47 $ 5.68
Weighted average shares outstanding - diluted 157,269 157,133 157,177 157,144
FFO per share diluted $ 1.86 $ 1.91 $ 5.46 $ 5.67

(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. (computed in accordance with GAAP) for gains (or losses) from sales of properties, including a change in control, 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 or a change in control 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 calculation 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 (loss) attributable to Boston Properties, Inc. as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Occupied by Location (1) % Leased by Location (2)
September 30, 2023 December 31, 2022 September 30, 2023 December 31, 2022
Boston 90.8 % 90.2 % 91.5 % 92.7 %
Los Angeles 85.9 % 88.3 % 87.6 % 88.6 %
New York 90.2 % 86.8 % 90.9 % 90.9 %
San Francisco 87.1 % 88.5 % 87.9 % 88.8 %
Seattle 84.7 % 88.3 % 87.6 % 90.9 %
Washington, DC 86.5 % 88.7 % 90.9 % 93.0 %
Total Portfolio 88.8 % 88.6 % 90.4 % 91.5 %

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

(2)Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates.

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

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