Equibles

8-K

BXP, Inc. (BXP)

8-K 2022-01-26 For: 2022-01-25
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 25, 2022

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On January 25, 2022, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the fourth quarter of 2021. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended December 31, 2021.
*99.2 Press release dated January 25, 2022.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: January 25, 2022

Document

Exhibit 99.1

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Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2021

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s complete portfolio totals 52.8 million square feet and 201 properties, including nine properties under construction/redevelopment. The Company’s properties include 182 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned a tenth consecutive Global Real Estate Sustainability Benchmark (GRESB) “Green Star” recognition and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 52.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 56.

GENERAL INFORMATION

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

(Cover photo: Rendering of 360 Park Avenue South, New York, NY)

Q4 2021
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 4
Consolidated Income Statements 5
Funds From Operations (FFO) 6
Funds Available for Distribution (FAD) 7
Net Operating Income (NOI) 8
Same Property Net Operating Income (NOI) by Reportable Segment 10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 12
Acquisitions and Dispositions 13
DEVELOPMENT ACTIVITY
Construction in Progress 14
Land Parcels and Purchase Options 15
LEASING ACTIVITY
Leasing Activity 16
PROPERTY STATISTICS
Portfolio Overview 17
Residential and Hotel Performance 18
In-Service Property Listing 20
Top 20 Tenants Listing and Portfolio Tenant Diversification 24
Occupancy by Location 25
DEBT AND CAPITALIZATION
Capital Structure 26
Debt Analysis 27
Senior Unsecured Debt Covenant Compliance Ratios 28
Net Debt to EBITDAre 29
Debt Ratios 30
JOINT VENTURES
Consolidated Joint Ventures 31
Unconsolidated Joint Ventures 33
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 36
Boston 37
Los Angeles 39
New York 41
San Francisco 43
Washington, DC 45
CBD 47
Suburban 49
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 51
Definitions 52
Reconciliations 56
Consolidated Income Statement - Prior Year 64
Q4 2021
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Company profile

SNAPSHOT

(as of December 31, 2021)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 201
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 52.8 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 174.6 million
Closing Price, at the end of the quarter $115.18 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 3.4%
Consolidated Market Capitalization 2 $33.0 billion
BXP’s Share of Market Capitalization 2, 3 $33.0 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

MANAGEMENT

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

____________________

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

2For additional detail, see page 26.

3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

Q4 2021
Guidance and assumptions

GUIDANCE

The Company’s guidance for the first quarter 2022 and full year 2022 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on January 25, 2022 and those referenced during the Company’s conference call scheduled for January 26, 2022.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatement of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains and losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 54. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

First Quarter 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.67 $ 0.69 $ 3.00 $ 3.15
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05 4.30 4.30
Projected FFO per share (diluted) $ 1.72 $ 1.74 $ 7.30 $ 7.45

ASSUMPTIONS

(dollars in thousands)

Full Year 2022
Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 90.00 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) 2.00 % 3.00 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 5.00 % 6.00 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 70,000 $ 80,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (9,000) $ (8,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 100,000 $ 120,000
Termination income $ 2,000 $ 4,000
Other revenue (expense):
Development, management services and other revenue $ 24,000 $ 30,000
General and administrative expense 1 $ (157,000) $ (151,000)
Net interest expense $ (415,000) $ (405,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (144,000) $ (140,000)

_______________

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

Q4 2021
Financial highlights

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

Three Months Ended
31-Dec-21 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 184,537 $ 108,297
Net income attributable to Boston Properties, Inc. per share - diluted $ 1.18 $ 0.69
FFO attributable to Boston Properties, Inc. 1 $ 242,963 $ 270,477
Diluted FFO per share 1 $ 1.55 $ 1.73
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 143,195 $ 236,608
Selected items:
Revenue $ 731,063 $ 730,056
Recoveries from tenants $ 104,194 $ 107,766
Service income from tenants $ 2,428 $ 1,874
BXP’s Share of revenue 3 $ 708,519 $ 696,313
BXP’s Share of straight-line rent 3 $ 30,129 $ 35,811
BXP’s Share of fair value lease revenue 3, 4 $ 2,058 $ 1,793
BXP’s Share of termination income 3 $ 76 $ 1,847
Losses from early extinguishments of debt $ (44,284) $ —
Ground rent expense $ 3,192 $ 3,249
Capitalized interest $ 13,839 $ 11,586
Capitalized wages $ 3,594 $ 3,366
Loss from unconsolidated joint ventures $ (825) $ (5,597)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 19,576 $ 12,206
Net income attributable to noncontrolling interests in property partnerships $ 18,204 $ 18,971
FFO attributable to noncontrolling interests in property partnerships 6 $ 35,686 $ 35,744
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 1,457 $ 1,906
Below-market rents (included within Other Liabilities) $ 22,962 $ 24,823
Accrued rental income liability (included within Other Liabilities) $ 129,390 $ 132,580
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 4.00 3.79
Interest Coverage Ratio (including capitalized interest) 7 3.50 3.37
Fixed Charge Coverage Ratio 8 2.81 2.94
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.46 7.70
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 17.9 % 7.4 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 10.2 % 9.2 %
FAD Payout Ratio 2 119.06 % 71.97 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 64.0 % 63.9 %
Occupancy of In-Service Properties 88.8 % 88.4 %
Capitalization:
Consolidated Debt $ 12,896,609 $ 13,378,350
BXP’s Share of Debt 10 $ 12,923,917 $ 13,477,453
Consolidated Market Capitalization $ 33,006,115 $ 32,196,903
Consolidated Debt/Consolidated Market Capitalization 39.07 % 41.55 %
BXP’s Share of Market Capitalization 10 $ 33,033,423 $ 32,296,006
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 39.12 % 41.73 %

_____________

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

2For the three months ended December 31, 2021, includes approximately $42.9 million of cash losses related to the early extinguishment of debt in connection with the early redemption of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that were scheduled to mature in February 2023. For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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

5For a quantitative reconciliation for the three months ended December 31, 2021, see page 35.

6For a quantitative reconciliation for the three months ended December 31, 2021, see page 32.

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

8For a quantitative reconciliation for the three months ended December 31, 2021 and September 30, 2021, see page 29.

9For a quantitative reconciliation for the three months ended December 31, 2021 and September 30, 2021, see pages 10, 62 and 63.

10For a quantitative reconciliation for December 31, 2021, see page 26.

Q4 2021
Consolidated Balance Sheets

(unaudited and in thousands)

31-Dec-21 30-Sep-21
ASSETS
Real estate $ 22,298,103 $ 22,088,835
Construction in progress 894,172 1,054,531
Land held for future development 560,355 568,034
Right of use assets - finance leases 237,507 237,845
Right of use assets - operating leases 169,778 170,085
Less accumulated depreciation (5,883,961) (5,850,397)
Total real estate 18,275,954 18,268,933
Cash and cash equivalents 452,692 1,002,728
Cash held in escrows 48,466 79,193
Investments in securities 43,632 41,517
Tenant and other receivables, net 60,513 61,269
Related party note receivable, net 78,336 78,144
Notes receivable, net 9,641 19,297
Accrued rental income, net 1,226,745 1,203,840
Deferred charges, net 618,798 622,807
Prepaid expenses and other assets 57,811 97,560
Investments in unconsolidated joint ventures 1,482,997 1,373,522
Total assets $ 22,355,585 $ 22,848,810
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,267,914 $ 2,898,699
Unsecured senior notes, net 9,483,695 10,479,651
Unsecured line of credit 145,000 —
Lease liabilities - finance leases 244,421 243,562
Lease liabilities - operating leases 204,561 204,137
Accounts payable and accrued expenses 312,125 331,687
Dividends and distributions payable 169,859 169,739
Accrued interest payable 94,796 87,408
Other liabilities 390,418 370,403
Total liabilities 14,312,789 14,785,286
Commitments and contingencies — —
Redeemable deferred stock units 9,568 8,775
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,623,749 and 156,285,391 issued and 156,544,849 and 156,206,491 outstanding at December 31, 2021 and September 30, 2021, respectively 1,565 1,562
Additional paid-in capital 6,497,750 6,415,802
Dividends in excess of earnings (625,911) (657,021)
Treasury common stock at cost, 78,900 shares at December 31, 2021 and September 30, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (36,662) (40,803)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,834,020 5,716,818
Noncontrolling interests:
Common units of the Operating Partnership 642,655 609,830
Property partnerships 1,556,553 1,728,101
Total equity 8,033,228 8,054,749
Total liabilities and equity $ 22,355,585 $ 22,848,810
Q4 2021
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Dec-21 30-Sep-21
Revenue
Lease $ 690,912 $ 692,260
Parking and other 22,940 21,266
Insurance proceeds 1 147 2,241
Hotel revenue 6,227 5,189
Development and management services 7,516 6,094
Direct reimbursements of payroll and related costs from management services contracts 3,321 3,006
Total revenue 731,063 730,056
Expenses
Operating 129,335 124,153
Real estate taxes 127,125 131,718
Demolition costs 38 169
Restoration expenses related to insurance claim 1 280 2,241
Hotel operating 5,005 3,946
General and administrative 2 33,649 34,560
Payroll and related costs from management services contracts 3,321 3,006
Transaction costs 2,066 1,888
Depreciation and amortization 177,521 179,412
Total expenses 478,340 481,093
Other income (expense)
Loss from unconsolidated joint ventures (825) (5,597)
Gains on sales of real estate 115,556 348
Gains (losses) from investments in securities 2 1,882 (190)
Interest and other income (loss) 1,564 1,520
Losses from early extinguishments of debt (44,284) —
Interest expense (103,331) (105,794)
Net income 223,285 139,250
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,204) (18,971)
Noncontrolling interest - common units of the Operating Partnership 3 (20,544) (11,982)
Net income attributable to Boston Properties, Inc. $ 184,537 $ 108,297
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 1.18 $ 0.69
Net income attributable to Boston Properties, Inc. per share - diluted $ 1.18 $ 0.69

_____________

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

2General and administrative expense includes $1.9 million and $(0.2) million and Gains (losses) from investments in securities include $1.9 million and $(0.2) million for the three months ended December 31, 2021 and September 30, 2021, respectively, related to the Company’s deferred compensation plan.

3For additional detail, see page 6.

Q4 2021
Funds from operations (FFO) 1

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

Three Months Ended
31-Dec-21 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 184,537 $ 108,297
Add:
Noncontrolling interest - common units of the Operating Partnership 20,544 11,982
Noncontrolling interests in property partnerships 18,204 18,971
Net income 223,285 139,250
Add:
Depreciation and amortization expense 177,521 179,412
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,482) (16,773)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 20,401 17,803
Corporate-related depreciation and amortization (426) (443)
Less:
Gains on sales of real estate 115,556 348
Noncontrolling interests in property partnerships 18,204 18,971
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 269,539 299,930
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 26,576 29,453
FFO attributable to Boston Properties, Inc. $ 242,963 $ 270,477
Boston Properties, Inc.’s percentage share of Basic FFO 90.14 % 90.18 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 9.86 % 9.82 %
Basic FFO per share $ 1.55 $ 1.73
Weighted average shares outstanding - basic 156,297 156,183
Diluted FFO per share $ 1.55 $ 1.73
Weighted average shares outstanding - diluted 156,654 156,598

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Dec-21 30-Sep-21
Basic FFO $ 269,539 $ 299,930
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 269,539 299,930
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 29,389 29,393
Boston Properties, Inc.’s share of Diluted FFO $ 240,150 $ 270,537

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Dec-21 30-Sep-21
Shares/units for Basic FFO 173,390 173,194
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 357 415
Shares/units for Diluted FFO 173,747 173,609
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,093 17,011
Boston Properties, Inc.’s share of shares/units for Diluted FFO 156,654 156,598
Boston Properties, Inc.’s percentage share of Diluted FFO 90.16 % 90.20 %

_____________

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

2For a quantitative reconciliation for the three months ended December 31, 2021, see page 32.

3For a quantitative reconciliation for the three months ended December 31, 2021, see page 35.

Q4 2021
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Dec-21 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 184,537 $ 108,297
Add:
Noncontrolling interest - common units of the Operating Partnership 20,544 11,982
Noncontrolling interests in property partnerships 18,204 18,971
Net income 223,285 139,250
Add:
Depreciation and amortization expense 177,521 179,412
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,482) (16,773)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 20,401 17,803
Corporate-related depreciation and amortization (426) (443)
Less:
Gains on sales of real estate 115,556 348
Noncontrolling interests in property partnerships 18,204 18,971
Basic FFO 269,539 299,930
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 3,408 3,379
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 877 996
Stock-based compensation 7,466 8,440
Non-real estate depreciation 426 443
Unearned portion of capitalized fees from consolidated joint ventures 6 1,598 2,207
Non-cash losses from early extinguishments of debt 1,433 —
Less:
BXP’s Share of straight-line rent 1 30,129 35,811
BXP’s Share of fair value lease revenue 1, 7 2,058 1,793
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 83,011 25,826
BXP’s Share of maintenance capital expenditures 1, 8 27,743 16,800
Hotel improvements, equipment upgrades and replacements 57 3
Funds available for distribution to common shareholders and common unitholders (FAD) (A) 9 $ 143,195 $ 236,608
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 170,492 $ 170,286
FAD Payout Ratio1 (B÷A) 119.06 % 71.97 %

_____________

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

2For a quantitative reconciliation for the three months ended December 31, 2021, see page 32.

3For a quantitative reconciliation for the three months ended December 31, 2021, see page 35.

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

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

6See page 58 for additional information.

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

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

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

Q4 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
31-Dec-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 184,537 $ 7,310
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 184,537 9,935
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 20,544 990
Noncontrolling interest in property partnerships 18,204 13,980
Net income 223,285 24,905
Add:
Interest expense 103,331 111,991
Losses from early extinguishments of debt 44,284 —
Loss from unconsolidated joint ventures 825 79,700
Depreciation and amortization expense 177,521 168,013
Transaction costs 2,066 277
Payroll and related costs from management services contracts 3,321 3,009
General and administrative expense 33,649 31,053
Less:
Interest and other income (loss) 1,564 1,676
Gains from investments in securities 1,882 4,296
Gains on sales of real estate 115,556 5,259
Direct reimbursements of payroll and related costs from management services contracts 3,321 3,009
Development and management services revenue 7,516 6,356
Net Operating Income (NOI) 458,443 398,352
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 33,278 13,336
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 47,841 40,639
BXP’s Share of NOI 443,880 371,049
Less:
Termination income (16) 551
BXP’s share of termination income from unconsolidated joint ventures 1 88 771
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2 (4) 95
BXP’s Share of NOI (excluding termination income) $ 443,804 $ 369,822
Net Operating Income (NOI) $ 458,443 $ 398,352
Less:
Termination income (16) 551
NOI from non Same Properties (excluding termination income) 3 8,587 5,187
Same Property NOI (excluding termination income) 449,872 392,614
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 47,845 40,544
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 1,591 (76)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 33,190 12,565
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 7,696 649
BXP’s Share of Same Property NOI (excluding termination income) $ 429,112 $ 363,910

_____________

1For a quantitative reconciliation for the three months ended December 31, 2021, see page 61.

2For a quantitative reconciliation for the three months ended December 31, 2021, see pages 58-59.

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2021 and therefore are no longer a part of the Company’s property portfolio.

Q4 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

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

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $52 and $144 for the three months ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

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

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2021 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended December 31, 2021, see page 59.

5For a quantitative reconciliation for the three months ended December 31, 2021, see page 61.

Q4 2021
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Dec-21 31-Dec-20 Change Change 31-Dec-21 31-Dec-20 Change Change
Rental Revenue 2 $ 688,717 $ 637,648 $ 19,064 $ 9,533
Less: Termination income (16) 551 — —
Rental revenue (excluding termination income) 2 688,733 637,097 8.1 % 19,064 9,533 100.0 %
Less: Operating expenses and real estate taxes 246,576 247,084 (508) (0.2) % 11,349 6,932 4,417 63.7 %
NOI (excluding termination income) 2, 3 $ 442,157 $ 390,013 13.4 % $ 7,715 $ 2,601 196.6 %
Rental revenue (excluding termination income) 2 $ 688,733 $ 637,097 8.1 % $ 19,064 $ 9,533 100.0 %
Less: Straight-line rent and fair value lease revenue 28,563 13,122 15,441 117.7 % (21) 241 (262) (108.7) %
Add: Lease transaction costs that qualify as rent inducements 4 3,731 1,333 2,398 179.9 % — — — — %
Subtotal 663,901 625,308 38,593 6.2 % 19,085 9,292 9,793 105.4 %
Less: Operating expenses and real estate taxes 246,576 247,084 (508) (0.2) % 11,349 6,932 4,417 63.7 %
Add: Straight-line ground rent expense 5 680 799 (119) (14.9) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 418,005 $ 379,023 10.3 % $ 7,736 $ 2,360 227.8 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
31-Dec-21 31-Dec-20 Change Change 31-Dec-21 31-Dec-20 Change Change
Rental Revenue 2 $ 707,781 $ 647,181 $ 43,430 $ 30,266
Less: Termination income (16) 551 88 771
Rental revenue (excluding termination income) 2 707,797 646,630 9.5 % 43,342 29,495 46.9 %
Less: Operating expenses and real estate taxes 257,925 254,016 3,909 1.5 % 17,848 17,579 269 1.5 %
NOI (excluding termination income) 2, 3 $ 449,872 $ 392,614 14.6 % $ 25,494 $ 11,916 113.9 %
Rental revenue (excluding termination income) 2 $ 707,797 $ 646,630 9.5 % $ 43,342 $ 29,495 46.9 %
Less: Straight-line rent and fair value lease revenue 28,542 13,363 15,179 113.6 % 3,298 (7,097) 10,395 146.5 %
Add: Lease transaction costs that qualify as rent inducements 4 3,731 1,333 2,398 179.9 % 547 1,260 (713) (56.6) %
Subtotal $ 682,986 $ 634,600 48,386 7.6 % 40,591 37,852 2,739 7.2 %
Less: Operating expenses and real estate taxes 257,925 254,016 3,909 1.5 % 17,848 17,579 269 1.5 %
Add: Straight-line ground rent expense 5 680 799 (119) (14.9) % 145 273 (128) (46.9) %
NOI - cash (excluding termination income) 2, 3 $ 425,741 $ 381,383 11.6 % $ 22,888 $ 20,546 11.4 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7, 8
Three Months Ended % Three Months Ended %
31-Dec-21 31-Dec-20 Change Change 31-Dec-21 31-Dec-20 Change Change
Rental Revenue 2 $ 74,709 $ 70,452 $ 676,502 $ 606,995
Less: Termination income (4) 95 76 1,227
Rental revenue (excluding termination income) 2 74,713 70,357 6.2 % 676,426 605,768 11.7 %
Less: Operating expenses and real estate taxes 28,459 29,737 (1,278) (4.3) % 247,314 241,858 5,456 2.3 %
NOI (excluding termination income) 2, 3 $ 46,254 $ 40,620 13.9 % $ 429,112 $ 363,910 17.9 %
Rental revenue (excluding termination income) 2 $ 74,713 $ 70,357 6.2 % $ 676,426 $ 605,768 11.7 %
Less: Straight-line rent and fair value lease revenue 2,908 5,555 (2,647) (47.7) % 28,932 711 28,221 3,969.2 %
Add: Lease transaction costs that qualify as rent inducements 4 892 12 880 7,333.3 % 3,386 2,581 805 31.2 %
Subtotal 72,697 64,814 7,883 12.2 % 650,880 607,638 43,242 7.1 %
Less: Operating expenses and real estate taxes 28,459 29,737 (1,278) (4.3) % 247,314 241,858 5,456 2.3 %
Add: Straight-line ground rent expense 5 — — — — % 825 1,072 (247) (23.0) %
NOI - cash (excluding termination income) 2, 3 $ 44,238 $ 35,077 26.1 % $ 404,391 $ 366,852 10.2 %

All values are in US Dollars.

___________________

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

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

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

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

5Excludes the straight-line impact of approximately $52 and $144 for the three months ended December 31, 2021 and 2020, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

Q4 2021
Same property net operating income (NOI) by reportable segment (continued)

6BXP’s Share equals (A) + (B) - (C).

7BXP’s Share of Same Store NOI (excluding termination income) increased $65,202 compared to Q4 2020. Included in the Q4 2020 comparison are BXP’s Share of $39,741 in write-offs associated with accrued rent, net and $333 in write-offs associated with accounts receivable, net. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $40,074.

8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $37,539 compared to Q4 2020. Included in the Q4 2020 comparison is BXP’s Share of $333 in write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $11,926 in Q4 2021 compared to Q4 2020. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $12,259. For additional information, see page 56.

Q4 2021
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Dec-21 30-Sep-21
Maintenance capital expenditures $ 33,919 $ 17,779
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures — —
Hotel improvements, equipment upgrades and replacements 57 3
Subtotal 33,976 17,782
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 180 192
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,023 786
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 6,356 1,171
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs — —
BXP’s Share of Capital Expenditures 1 $ 28,823 $ 17,589

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Dec-21 30-Sep-21
Square feet 1,422,236 718,572
Tenant improvements and lease commissions PSF $ 75.03 $ 43.95

___________________

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

2Includes 100% of unconsolidated joint ventures.

Q4 2021
Acquisitions and dispositions

For the period from January 1, 2021 through December 31, 2021

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
153 & 211 Second Avenue Waltham, MA June 2, 2021 136,882 $ 100,176 $ 5,000 $ 105,176 100.0 %
Shady Grove Bio+Tech Campus 1 Rockville, MD August 2, 2021 233,452 116,500 — 116,500 64.4 %
Safeco Plaza 2 Seattle, WA September 1, 2021 765,139 465,000 40,000 505,000 90.9 %
360 Park Avenue South 3 New York, NY December 14, 2021 450,000 300,000 219,286 519,286 N/A
Total Acquisitions 1,585,473 $ 981,676 $ 264,286 $ 1,245,962 86.6 % 4

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain
Annapolis Junction Buildings Six and Seven 5 Annapolis, MD March 30, 2021 246,568 $ 65,948 $ 17,600 $ 10,257
6595 Springfield Center Drive 6 Springfield, VA December 13, 2018 N/A N/A N/A 8,104
181, 191 and 201 Spring Street Waltham, MA October 25, 2021 333,000 191,500 179,887 115,572
Total Dispositions 579,568 $ 257,448 $ 197,487 $ 133,933

________________

1Shady Grove Bio+Tech Campus is an approximately 435,000 net rentable square foot, seven-building office park situated on an approximately 31-acre site. The Company intends to reposition three of the buildings, which are currently vacant, to support life sciences uses. These three buildings are not part of the Company’s in-service portfolio and are included within Land Held for Future Development on the Company’s Consolidated Balance Sheet. The Company anticipates it will redevelop or convert the remaining four buildings to lab or life sciences-related uses as each becomes vacant.

2The acquisition was completed through a newly formed joint venture with two institutional partners. Each partner owns approximately one-third of the joint venture. Each of the institutional partners invested approximately $71.9 million of cash for its ownership interest in the joint venture. The Company invested approximately $72.6 million in the joint venture and is providing customary operating, property management and leasing services to the venture. The purchase price was funded with cash and proceeds from a new mortgage loan secured by the property.

3On December 14, 2021, the Company acquired 360 Park Avenue South. The gross purchase price was approximately $300.7 million (including $0.7 million of net closing costs), consisting of (1) the assumption of approximately $200.3 million of mortgage debt collateralized by the property and (2) the issuance of 866,503 common units of limited partnership interest in Boston Properties Limited Partnership (“OPUs”), the Company’s operating partnership. The OPUs issued totaled approximately $99.7 million based on the average closing price per share of BXP common stock for the five trading days immediately preceding the closing date (approximately $115 per share). Following the acquisition, on December 14, 2021, the Company refinanced the mortgage loan with a new lender totaling $220.0 million. On December 15, 2021, the Company entered into a joint venture with two institutional partners as part of the Company’s Strategic Capital Program and contributed the property to the joint venture for its aggregate 42% ownership interest. There was no gain on sale of real estate associated with the contribution of the property to the joint venture. The joint venture has commenced redevelopment activity, including modernizing building systems and creating amenities, collaborative spaces, and client spaces.

4Total percentage leased excludes 360 Park Avenue South, which is in redevelopment.

5Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million. With the sale of Annapolis Junction Buildings Six and Seven, the Company no longer has any assets in Annapolis, Maryland.

6The Company sold its 6595 Springfield Center Drive development project located in Springfield, Virginia on December 13, 2018. Concurrently with the sale, the Company agreed to act as development manager and guaranteed the completion of the project. The Company earned a development fee of approximately $7.9 million to develop this building. Upon completion of the project in 2021, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, the Company recognized a gain on sale of real estate of approximately $8.1 million during the year ended December 31, 2021.

Q4 2021
Construction in progress

as of December 31, 2021

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 12/31/2021 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 $ 308,403 $ 418,400 $ — $ — $ 109,997 90 % — % N/A
Reston Next Q4 2021 Q4 2023 Reston, VA 1,062,000 534,847 715,300 — — 180,453 85 % 28 % $ 1,537
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 229,749 356,100 — — 126,351 58 % — % N/A
360 Park Avenue South (42% ownership) 6 Q3 2023 Q1 2025 New York, NY 450,000 192,058 219,000 92,774 84,925 19,093 — % — % N/A
Total Office Properties under Construction 2,412,000 1,265,057 1,708,800 92,774 84,925 435,894 65 % 12 % $ 1,537
Lab/Life Sciences
880 Winter Street (Redevelopment) Q4 2022 Q1 2023 Waltham, MA 224,000 20,345 108,000 — — 87,655 74 % — % N/A
751 Gateway (49% ownership) Q2 2024 Q2 2024 South San Francisco, CA 230,592 41,337 127,600 — — 86,263 100 % — % N/A
103 CityPoint Q4 2023 Q3 2024 Waltham, MA 113,000 14,663 115,100 — — 100,437 — % — % N/A
180 CityPoint Q4 2023 Q4 2024 Waltham, MA 329,000 50,776 274,700 — — 223,924 — % — % N/A
Total Lab/Life Sciences Properties under Construction 896,592 127,121 625,400 — — 498,279 44 % — % —
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 59,699 182,300 — — 122,601 N/A — % N/A
Total Properties Under Construction 3,367,592 $ 1,451,877 $ 2,516,500 $ 92,774 $ 84,925 $ 1,056,774 59 % 7 9 % $ 1,537

PROJECTS FULLY PLACED IN-SERVICE DURING 2021

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 12/31/2021 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5 (BXP’s Share)
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
One Five Nine East 53rd (55% Ownership) Q1 2021 Q1 2021 New York, NY 220,000 $ 146,734 $ 150,000 $ — $ — $ 3,266 96 % $ 3,536
100 Causeway Street (50% ownership) Q3 2021 Q2 2022 Boston, MA 633,819 229,303 243,700 200,000 154,717 — 95 % 3,180
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q4 2021 Q4 2021 Bethesda, MD 733,483 172,528 172,600 127,500 107,384 — 100 % 2,697
200 West Street (Redevelopment) 8 Q1 2022 Q1 2022 Waltham, MA 138,444 35,672 46,100 — — 10,428 100 % 699
Total Projects Fully Placed In-Service 1,725,746 $ 584,237 $ 612,400 $ 327,500 $ 262,101 $ 13,694 98 % $ 10,112

________________

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

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

3Represents percentage leased as of January 21, 2022, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2021. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 52.

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

7Total percentage leased excludes Other.

8Represents a portion of the property redeveloped for conversion to laboratory space.

Q4 2021
Land parcels and purchase options

as of December 31, 2021

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,938,000
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% Ownership) 1,078,000
San Francisco, CA 850,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
South San Francisco, CA (50% Ownership) 411,000
Dulles, VA 310,000
Waltham, MA 283,000
El Segundo, CA (50% Ownership) 275,000
Rockville, MD 3, 4 202,000
Total 13,770,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 1,400,000
Boston, MA 1,300,000
Waltham, MA 5 1,200,000
Total 3,900,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

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

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 20-23.

4On August 2, 2021, the Company acquired the Shady Grove Bio+Tech Campus in Rockville, Maryland, which includes three buildings that are currently vacant, totaling 202,000 square feet. The Company intends to reposition these three vacant buildings to support life science uses. These three buildings are not included in the Company’s in-service portfolio.

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

Q4 2021
Leasing activity

for the three months ended December 31, 2021

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,391,690
Add:
Properties placed (and partially placed) in-service 1 1,302,783
Leases expiring or terminated during the period 1,174,899
Total space available for lease 7,869,372
1st generation leases 1,107,107
2nd generation leases with new tenants 768,346
2nd generation lease renewals 653,890
Total space leased 2,529,343
Vacant space available for lease at the end of the period 5,340,029
Net (increase)/decrease in available space 51,661
Second generation leasing information: 2
Leases commencing during the period (SF) 1,422,236
Weighted average lease term (months) 89
Weighted average free rent period (days) 197
Total transaction costs per square foot 3 75.03
Increase (decrease) in gross rents 4 (0.46)
Increase (decrease) in net rents 5 (0.77)

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 7
1st generation 2nd generation total 6 gross 4 net 5
Boston 67,214 206,868 274,082 18.55 % 33.57 % 414,986
Los Angeles — 407,745 407,745 0.06 % 0.14 % —
New York — 221,790 221,790 (11.22) % (17.78) % 594,292
San Francisco 6,709 184,674 191,383 0.71 % 0.82 % 405,167
Seattle — — — — — —
Washington, DC 1,033,184 401,159 1,434,343 (11.56) % (18.06) % 379,015
Total / Weighted Average 1,107,107 1,422,236 2,529,343 (0.46) % (0.77) % 1,793,460

_____________

1Total square feet of properties placed (and partially placed) in-service in Q4 2021 consists of 135,350 at 100 Causeway Street, 733,483 at 7750 Wisconsin Avenue, 295,506 at Reston Next and 138,444 at 200 West Street.

2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,422,236 square feet of second generation leases that commenced in Q4 2021, leases for 417,566 square feet were signed in prior periods.

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

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 1,066,642 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,066,642 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

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

7Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 421,761.

Q4 2021
Portfolio overview

for the three months ended December 31, 2021

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,155,295 1,058,249 550,114 330,000 16,093,658
Los Angeles 2,181,224 126,377 — — 2,307,601
New York 11,331,449 417,849 — — 11,749,298
San Francisco 7,287,533 351,186 318,171 — 7,956,890
Seattle 746,105 18,761 — — 764,866
Washington, DC 9,005,248 684,709 822,436 — 10,512,393
Total 44,706,854 2,657,131 1,690,721 330,000 49,384,706
% of Total 90.53 % 5.38 % 3.42 % 0.67 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 652,267 $ 49,816 $ 12,015 $ 6,128 $ 720,226
Less:
Partners’ share from consolidated joint ventures 4 67,709 8,750 — — 76,459
Add:
BXP’s share from unconsolidated joint ventures 5 48,911 2,352 2,316 — 53,579
BXP’s Share of Rental revenue 1 $ 633,469 $ 43,418 $ 14,331 $ 6,128 $ 697,346
% of Total 90.84 % 6.22 % 2.06 % 0.88 % 100.00 %

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

CBD Suburban Total
Boston 27.27 % 6.97 % 34.24 %
Los Angeles 2.95 % — % 2.95 %
New York 25.59 % 2.13 % 27.72 %
San Francisco 16.71 % 2.91 % 19.62 %
Seattle 0.41 % — % 0.41 %
Washington, DC 4.88 % 10.18 % 15.06 %
Total 77.81 % 22.19 % 100.00 %

_____________

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

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

3Excludes approximately $99 of revenue from retail tenants that is included in Retail.

4See page 59 for additional information.

5See page 61 for additional information.

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

Q4 2021
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel 2
Three Months Ended Three Months Ended
31-Dec-21 30-Sep-21 31-Dec-21 30-Sep-21
Rental Revenue 3 $ 12,836 $ 10,894 $ 6,227 $ 5,189
Less: Operating expenses and real estate taxes 6,344 6,045 5,005 3,946
Net Operating Income (NOI) 3 6,492 4,849 1,222 1,243
Add: BXP’s share of NOI from unconsolidated joint ventures 1,288 882 N/A N/A
BXP’s Share of NOI 3 $ 7,780 $ 5,731 $ 1,222 $ 1,243
Rental Revenue 3 $ 12,836 $ 10,894 $ 6,227 $ 5,189
Less: Straight line rent and fair value lease revenue (26) (13) 5 5
Add: Lease transaction costs that qualify as rent inducements — 48 — —
Subtotal 12,862 10,955 6,222 5,184
Less: Operating expenses and real estate taxes 6,344 6,045 5,005 3,946
NOI - cash basis 3 6,518 4,910 1,217 1,238
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,288 882 N/A N/A
BXP’s Share of NOI - cash basis 3 $ 7,806 $ 5,792 $ 1,217 $ 1,238

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-21 31-Dec-20
BOSTON
Hub50House (50% ownership), Boston, MA 3 440
Average Monthly Rental Rate $ 3,809 $ 3,499 8.86 %
Average Rental Rate Per Occupied Square Foot $ 5.31 $ 5.09 4.32 %
Average Physical Occupancy 92.42 % 51.89 % 78.11 %
Average Economic Occupancy 90.17 % 45.58 % 97.83 %
Proto Kendall Square, Cambridge, MA 3, 4 280
Average Monthly Rental Rate $ 2,728 $ 2,645 3.14 %
Average Rental Rate Per Occupied Square Foot $ 5.01 $ 4.88 2.66 %
Average Physical Occupancy 95.48 % 89.88 % 6.23 %
Average Economic Occupancy 95.22 % 87.80 % 8.45 %
The Lofts at Atlantic Wharf, Boston, MA 3, 4 86
Average Monthly Rental Rate $ 3,855 $ 3,803 1.37 %
Average Rental Rate Per Occupied Square Foot $ 4.29 $ 4.26 0.70 %
Average Physical Occupancy 96.51 % 86.43 % 11.66 %
Average Economic Occupancy 95.58 % 85.06 % 12.37 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 4 N/A
Average Occupancy 51.10 % 6.30 % 711.11 %
Average Daily Rate $ 241.14 $ 138.88 73.63 %
Revenue Per Available Room $ 152.71 $ 9.11 1,576.29 %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 5 402
Average Monthly Rental Rate $ 3,387 $ 2,873 17.89 %
Average Rental Rate Per Occupied Square Foot $ 4.07 $ 3.41 19.35 %
Average Physical Occupancy 60.61 % 6.22 % 874.44 %
Average Economic Occupancy 58.42 % 3.23 % 1,708.67 %
Q4 2021
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-21 31-Dec-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 4 508
Average Monthly Rental Rate $ 2,596 $ 2,335 11.18 %
Average Rental Rate Per Occupied Square Foot $ 2.68 $ 2.42 10.74 %
Average Physical Occupancy 93.83 % 80.58 % 16.44 %
Average Economic Occupancy 93.22 % 77.09 % 20.92 %
The Avant at Reston Town Center, Reston, VA 3, 4 359
Average Monthly Rental Rate $ 2,340 $ 2,203 6.22 %
Average Rental Rate Per Occupied Square Foot $ 2.55 $ 2.42 5.37 %
Average Physical Occupancy 94.15 % 90.53 % 4.00 %
Average Economic Occupancy 93.84 % 88.71 % 5.78 %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

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

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

4Excludes retail space.

5This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.

Q4 2021
In-service property listing as of December 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,768,799 97.3 % $ 74.28
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 97.9 % 65.43
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,745 90.1 % 67.76
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,456 93.4 % 71.18
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 99.8 % 81.51
100 Causeway Street (50% ownership) 3, 4 CBD Boston MA 1 633,819 89.2 % 62.28
Prudential Center (retail shops) 5, 6 CBD Boston MA 1 597,522 76.3 % 97.45
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 56.98
The Hub on Causeway - Podium (50% ownership) 3 CBD Boston MA 1 382,497 80.3 % 69.59
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 77.85
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 59.82
Subtotal 11 8,400,154 93.6 % $ 71.72
145 Broadway East Cambridge MA 1 490,086 99.1 % $ 87.13
355 Main Street East Cambridge MA 1 259,640 99.3 % 77.15
90 Broadway East Cambridge MA 1 223,771 100.0 % 73.42
255 Main Street East Cambridge MA 1 215,394 97.5 % 87.11
300 Binney Street East Cambridge MA 1 195,191 100.0 % 59.87
150 Broadway East Cambridge MA 1 177,226 100.0 % 82.70
105 Broadway East Cambridge MA 1 152,664 100.0 % 70.78
250 Binney Street East Cambridge MA 1 67,362 100.0 % 48.46
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.54
Subtotal 9 1,976,616 99.4 % $ 75.41
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 993,110 73.4 % $ 44.43
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 80.3 % 37.77
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,991 99.4 % 42.53
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 56.63
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 88.1 % 38.86
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 93.8 % 41.64
200 West Street 4, 7 Route 128 Mass Turnpike MA 1 273,365 33.4 % 56.22
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 59.57
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 51.95
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 100.0 % 49.29
890 Winter Street Route 128 Mass Turnpike MA 1 177,417 58.2 % 44.56
153 & 211 Second Avenue 4 Route 128 Mass Turnpike MA 2 136,882 100.0 % 55.36
1265 Main Street (50% ownership) 3 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.62
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 45.70
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0 % 42.00
The Point 5 Route 128 Mass Turnpike MA 1 16,300 84.7 % 57.40
Lexington Office Park 8 Route 128 Northwest MA 2 166,779 55.2 % 29.25
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 67.38
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.21
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 62.51
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 45.37
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 49.69
Subtotal 29 4,808,370 84.1 % $ 46.42
Boston Office Total: 49 15,185,140 91.4 % $ 64.83
Residential
Hub50House (440 units) (50% ownership) 3 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,258 Q4 2021
--- ---
In-service property listing (continued) as of December 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 53 16,093,658
LOS ANGELES
Office
Colorado Center (50% ownership) 3 West Los Angeles CA 6 1,130,605 87.8 % $ 70.85
Santa Monica Business Park (55% ownership) 3 West Los Angeles CA 14 1,102,592 89.7 % 65.19
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 72.01
Subtotal 27 2,307,601 88.8 % $ 68.17
Los Angeles Total: 27 2,307,601 88.8 % $ 68.17
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,959,046 90.3 % $ 164.72
601 Lexington Avenue (55% ownership) 4 Park Avenue NY 1 1,671,749 95.7 % 99.06
399 Park Avenue Park Avenue NY 1 1,577,544 96.8 % 98.61
599 Lexington Avenue Park Avenue NY 1 1,062,708 99.4 % 93.15
Times Square Tower (55% ownership) Times Square NY 1 1,225,448 85.3 % 79.49
250 West 55th Street Times Square / West Side NY 1 966,979 99.3 % 99.56
Dock 72 (50% ownership) 3 Brooklyn NY 1 668,625 33.1 % 60.83
510 Madison Avenue Fifth/Madison Avenue NY 1 353,800 99.0 % 139.00
Subtotal 8 9,485,899 89.9 % $ 110.17
510 Carnegie Center Princeton NJ 1 234,160 10.2 % $ 42.37
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 36.00
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.46
212 Carnegie Center Princeton NJ 1 151,355 74.9 % 39.03
214 Carnegie Center Princeton NJ 1 146,799 60.1 % 35.63
506 Carnegie Center Princeton NJ 1 138,616 82.1 % 38.07
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 42.23
202 Carnegie Center Princeton NJ 1 134,068 88.5 % 41.52
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.31
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.33
101 Carnegie Center Princeton NJ 1 121,620 97.5 % 39.35
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 39.37
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.14
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 39.50
103 Carnegie Center Princeton NJ 1 96,331 62.1 % 32.51
105 Carnegie Center Princeton NJ 1 69,955 50.2 % 36.56
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 36.24
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 38.37
201 Carnegie Center Princeton NJ — 6,500 100.0 % 37.26
Subtotal 18 2,263,399 78.1 % $ 38.65
New York Total: 26 11,749,298 87.6 % $ 97.90
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 105.11
Embarcadero Center Four CBD San Francisco CA 1 941,228 92.9 % 85.37
Embarcadero Center One CBD San Francisco CA 1 831,603 84.4 % 80.20
Embarcadero Center Two CBD San Francisco CA 1 801,378 87.0 % 80.33
Embarcadero Center Three CBD San Francisco CA 1 786,864 86.7 % 82.66
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 70.90 Q4 2021
--- ---
In-service property listing (continued) as of December 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
535 Mission Street CBD San Francisco CA 1 307,235 88.7 % 86.08
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 67.65
Subtotal 9 5,639,863 92.1 % $ 87.56
Gateway Commons (50% ownership) 3, 9 South San Francisco CA 6 1,080,722 71.1 % $ 59.29
Mountain View Research Park Mountain View CA 15 542,264 82.0 % 70.47
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 86.67
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 39.96
North First Business Park 8 San Jose CA 5 190,636 42.5 % 23.96
Subtotal 28 1,986,031 73.5 % $ 63.18
San Francisco Office Total: 37 7,625,894 87.3 % $ 82.20
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 38 7,956,890
SEATTLE
Office
Safeco Plaza (33.67% ownership) 3, 4 CBD Seattle WA 1 764,866 90.9 % $ 44.09
Subtotal 1 764,866 90.9 % $ 44.09
Seattle Total: 1 764,866 90.9 % $ 44.09
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 3 East End Washington DC 1 657,481 65.6 % $ 69.18
901 New York Avenue (25% ownership) 3 East End Washington DC 1 541,743 74.4 % 69.05
601 Massachusetts Avenue East End Washington DC 1 478,667 98.7 % 86.83
Market Square North (50% ownership) 3 East End Washington DC 1 417,989 77.9 % 70.33
2200 Pennsylvania Avenue CBD Washington DC 1 459,667 97.3 % 91.04
1330 Connecticut Avenue CBD Washington DC 1 253,941 89.9 % 73.76
Sumner Square CBD Washington DC 1 209,556 94.6 % 55.67
500 North Capitol Street, N.W. (30% ownership) 3 Capitol Hill Washington DC 1 230,900 98.5 % 81.87
Capital Gallery Southwest Washington DC 1 176,809 97.1 % 54.03
Subtotal 9 3,426,753 84.8 % $ 74.94
South of Market Reston VA 3 623,250 99.0 % $ 54.65
Fountain Square Reston VA 2 505,232 76.5 % 53.28
One Freedom Square Reston VA 1 429,541 84.7 % 46.28
Two Freedom Square Reston VA 1 423,222 100.0 % 48.12
One and Two Discovery Square Reston VA 2 366,989 100.0 % 51.31
One Reston Overlook Reston VA 1 319,519 100.0 % 46.54
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 64.96
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.45
Democracy Tower Reston VA 1 259,441 97.7 % 59.90
Fountain Square Retail 5 Reston VA 1 216,591 80.6 % 41.74
Two Reston Overlook Reston VA 1 134,615 100.0 % 48.00
Subtotal 16 3,815,255 93.7 % $ 51.57
7750 Wisconsin Avenue (50% ownership) 3, 4 Bethesda/Chevy Chase MD 1 733,483 100.0 % $ 38.00
Wisconsin Place Office Montgomery County MD 1 299,248 85.6 % 60.20
Shady Grove Bio+Tech Campus 4, 8 North Rockville MD 4 233,452 64.4 % 18.12
Kingstowne Two Springfield VA 1 155,995 87.2 % 38.04
Kingstowne One Springfield VA 1 153,401 53.5 % 38.55
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 34.12 Q4 2021
--- ---
In-service property listing (continued) as of December 31, 2021
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
7435 Boston Boulevard Springfield VA 1 103,557 43.7 % 22.66
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail 5 Springfield VA 1 88,228 96.9 % 42.27
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.60
7501 Boston Boulevard Springfield VA 1 75,756 — % —
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 18.17
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 19.52
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.57
7451 Boston Boulevard Springfield VA 1 45,949 65.3 % 19.06
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 24.00
7375 Boston Boulevard Springfield VA 1 26,865 31.5 % 24.77
Subtotal 20 2,397,228 80.1 % $ 35.92
Washington, DC Office Total: 45 9,639,236 87.2 % $ 56.03
Residential
Signature at Reston (508 units) Reston VA 1 517,783
The Avant at Reston Town Center (359 units) Reston VA 1 355,374
Washington, DC Residential Total: 2 873,157
Washington, DC Total: 47 10,512,393
Total In-Service Properties: 192 49,384,706 88.8 % 10 $ 73.76 10

_____________

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

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

3This is an unconsolidated joint venture property.

4Not included in the Same Property analysis. The Company’s One Five Nine East 53rd Street development project, the low-rise portion of 601 Lexington Avenue, was fully placed in-service in February 2021 and excluded from the Company’s Same Property analysis.

5This is a retail property.

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

7Includes 138,444 square feet of redevelopment that was fully placed in-service in December 2021. For additional detail, see page 14.

8Property held for redevelopment.

9During January 2022, 651 Gateway was taken out of service and placed in redevelopment. 651 Gateway is 292,967 rentable square feet.

10Excludes Hotel and Residential properties. For additional detail, see pages 18-19.

Q4 2021
Top 20 tenants listing and portfolio tenant diversification

as of December 31, 2021

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.53 % 10.1
2 Arnold & Porter Kaye Scholer 2.59 % 12.4
3 Akamai Technologies 2.21 % 12.8
4 Biogen 1.78 % 4.9
5 Shearman & Sterling 1.58 % 11.9
6 Kirkland & Ellis 1.52 % 15.9
7 Ropes & Gray 1.50 % 8.4
8 Google 1.36 % 15.7
9 WeWork 1.35 % 11.7
10 Microsoft 1.31 % 10.2
11 Millennium Management 1.21 % 9.0
12 Weil Gotshal & Manges 1.20 % 12.4
13 Wellington Management 1.14 % 11.3
14 Aramis (Estee Lauder) 1.05 % 15.7
15 Morrison & Foerster 0.91 % 8.7
16 O'Melveny & Myers 0.87 % 2.9
17 Snap 0.85 % 4.0
18 US Government 0.84 % 5.2
19 Bank of America 0.83 % 13.5
20 Mass Financial Services 0.82 % 6.2
BXP’s Share of Annualized Rental Obligations 28.44 %
BXP’s Share of Square Feet 1 23.00 %
Weighted Average Remaining Lease Term (years) 10.6

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
Google 325 Main Street 379,000
Fannie Mae 4 Reston Next 332,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Genentech 751 Gateway 229,000
Volkswagen Group of America Reston Next 196,000
Translate Bio 200 West Street 138,000

TENANT DIVERSIFICATION 2

chart-d18185407dec402988ea.jpg

_____________

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

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

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

4Excludes approximately 371,000 square feet of space for which revenue recognition commenced in the fourth quarter of 2021.

Q4 2021
Occupancy by location

as of December 31, 2021

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

CBD Suburban Total
Location 31-Dec-21 30-Sep-21 31-Dec-21 30-Sep-21 31-Dec-21 30-Sep-21
Boston 94.7 % 94.7 % 84.1 % 87.6 % 91.4 % 92.3 %
Los Angeles 88.8 % 83.4 % — % — % 88.8 % 83.4 %
New York 89.9 % 89.9 % 78.1 % 77.1 % 87.6 % 87.5 %
San Francisco 92.1 % 92.1 % 73.5 % 74.0 % 87.3 % 87.3 %
Seattle 90.9 % 90.9 % — % — % 90.9 % 90.9 %
Washington, DC 84.8 % 84.3 % 88.5 % 85.5 % 87.2 % 85.1 %
Total Portfolio 91.2 % 90.7 % 83.6 % 83.4 % 88.8 % 88.4 %

chart-46377ea7c0e44757bf8a.jpg

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

CBD Suburban Total
Location 31-Dec-21 31-Dec-20 31-Dec-21 31-Dec-20 31-Dec-21 31-Dec-20
Boston 95.1 % 98.4 % 86.2 % 87.9 % 92.3 % 95.1 %
Los Angeles 88.8 % 93.5 % — % — % 88.8 % 93.5 %
New York 89.9 % 90.0 % 78.1 % 76.6 % 87.5 % 87.4 %
San Francisco 92.1 % 95.0 % 73.5 % 78.6 % 87.3 % 90.7 %
Seattle 3 — % N/A — % N/A — % N/A
Washington, DC 84.8 % 83.7 % 87.9 % 84.7 % 86.7 % 84.3 %
Total Portfolio 91.3 % 93.2 % 83.7 % 83.6 % 88.9 % 90.1 %

chart-03bb5e3eb677401c8d5a.jpg

_____________

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

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

3The Company entered the Seattle market on September 1, 2021. Therefore, there is no occupancy information provided for the prior year.

Q4 2021
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit 145,000
Unsecured Senior Notes, at face value 9,550,000
Outstanding Principal 12,995,000
Discount on Unsecured Senior Notes (16,548)
Deferred Financing Costs, Net (81,843)
Consolidated Debt $ 12,896,609

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
601 Lexington Avenue (55% ownership) January 9, 2032 2.92% 2.79% $ 1,000,000
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 3,300,000

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% $ 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
$ 9,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,545 156,545 $ 18,030,853
Common Operating Partnership Units 18,047 18,047 2,078,653
Total Equity 174,592 $ 20,109,506
Consolidated Debt (A) $ 12,896,609
Add: BXP’s share of unconsolidated joint venture debt 3 1,383,887
Less: Partners’ share of consolidated debt 4 1,356,579
BXP’s Share of Debt 5 (B) $ 12,923,917
Consolidated Market Capitalization (C) $ 33,006,115
BXP’s Share of Market Capitalization 5 (D) $ 33,033,423
Consolidated Debt/Consolidated Market Capitalization (A÷C) 39.07 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 39.12 %

_____________

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

2Values are based on the December 31, 2021 closing price of $115.18 per share of BXP common stock.

3Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 33.

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

5See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

Q4 2021
Debt analysis 1

as of December 31, 2021

(dollars in thousands)

chart-fcc897b4e95b4af6b3aa.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at December 31, 2021 Letters of Credit Remaining Capacity at December 31, 2021
Unsecured Line of Credit $ 1,500,000 $ 145,000 $ 6,348 $ 1,348,652

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 74.66 % 3.31 % 3.40 % 6.5
Secured Debt 25.34 % 3.24 % 3.42 % 6.8
Consolidated Debt 100.00 % 3.29 % 3.40 % 6.6

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt 1.12 % 0.87 % 0.98 % 4.5
Fixed Rate Debt 98.88 % 3.32 % 3.43 % 6.6
Consolidated Debt 100.00 % 3.29 % 3.40 % 6.6

_____________

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

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

Q4 2021
Senior unsecured debt covenant compliance ratios

In the fourth quarter of 2002, the Company’s Operating Partnership (Boston Properties Limited Partnership) received investment grade ratings on its senior unsecured debt securities and thereafter issued unsecured notes. The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented from time to time (the “Indenture”), which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the Indenture.

This section presents such ratios as of December 31, 2021 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 46.3 % 42.9 %
Secured Debt/Total Assets Less than 50% 15.6 % 14.5 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.23 4.23
Unencumbered Assets/ Unsecured Debt Greater than 150% 247.1 % 270.6 %

_____________

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

Q4 2021
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
31-Dec-21 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 184,537 $ 108,297
Add:
Noncontrolling interest - common units of the Operating Partnership 20,544 11,982
Noncontrolling interest in property partnerships 18,204 18,971
Net income 223,285 139,250
Add:
Interest expense 103,331 105,794
Losses from early extinguishments of debt 44,284 —
Depreciation and amortization expense 177,521 179,412
Less:
Gains on sales of real estate 115,556 348
Loss from unconsolidated joint ventures (825) (5,597)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 32,724 24,121
EBITDAre 1 466,414 453,826
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 47,673 47,740
BXP’s Share of EBITDAre 1 (A) 418,741 406,086
Add:
Stock-based compensation expense 7,466 8,440
BXP’s Share of straight-line ground rent expense adjustment 1 877 996
BXP’s Share of lease transaction costs that qualify as rent inducements 1 3,408 3,379
Less:
BXP’s Share of straight-line rent 1 30,129 35,811
BXP’s Share of fair value lease revenue 1 2,058 1,793
Non-cash losses from early extinguishments of debt 1,433 —
BXP’s Share of EBITDAre – cash 1 $ 396,872 $ 381,297
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,674,964 $ 1,624,344

Reconciliation of BXP’s Share of Net Debt 1

31-Dec-21 30-Sep-21
Consolidated debt $ 12,896,609 $ 13,378,350
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 452,692 1,002,728
Cash held in escrow for 1031 exchange — —
Net debt 1 12,443,917 12,375,622
Add:
BXP’s share of unconsolidated joint venture debt 2 1,383,887 1,289,582
Partners’ share of cash and cash equivalents from consolidated joint ventures 127,413 123,115
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 102,942 95,224
Partners’ share of consolidated joint venture debt 3 1,356,579 1,190,479
BXP’s Share of Net Debt 1 (B) $ 12,495,696 $ 12,502,616
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.46 7.70

_____________

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

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended December 31, 2021, see pages 33 and 60.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended December 31, 2021, see pages 31 and 58.

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

Q4 2021
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Dec-21 30-Sep-21
BXP’s Share of interest expense 1 $ 104,492 $ 105,713
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,805 3,587
Adjusted interest expense excluding capitalized interest (A) 99,241 100,680
Add:
BXP’s Share of capitalized interest 1 14,246 12,375
Adjusted interest expense including capitalized interest (B) $ 113,487 $ 113,055
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 396,872 $ 381,297
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 4.00 3.79
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.50 3.37

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Dec-21 30-Sep-21
BXP’s Share of interest expense 1 $ 104,492 $ 105,713
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,805 3,587
Add:
BXP’s Share of capitalized interest 1 14,246 12,375
BXP’s Share of maintenance capital expenditures 1 27,743 16,800
Hotel improvements, equipment upgrades and replacements 57 3
Total Fixed Charges (A) $ 141,287 $ 129,858
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 396,872 $ 381,297
Fixed Charge Coverage Ratio (B÷A) 2.81 2.94

_____________

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

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

Q4 2021
Consolidated joint ventures

d

as of December 31, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,192,735 $ 2,271,059 $ 5,463,794
Cash and cash equivalents 160,177 140,760 300,937
Other assets 269,788 370,067 639,855
Total assets $ 3,622,700 $ 2,781,886 $ 6,404,586
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,280,985 $ 986,898 $ 3,267,883
Other liabilities 110,147 89,978 200,125
Total liabilities 2,391,132 1,076,876 3,468,008
Equity:
Boston Properties, Inc. 740,496 639,407 1,379,903
Noncontrolling interests 491,072 1,065,603 1,556,675 2
Total equity 1,231,568 1,705,010 2,936,578
Total liabilities and equity $ 3,622,700 $ 2,781,886 $ 6,404,586
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 64,071 $ 63,342 $ 127,413
Partners’ share of consolidated debt 3 $ 912,474 4 $ 444,105 $ 1,356,579

_____________

1Certain balances contain amounts that eliminate in consolidation.

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

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

4Amount adjusted for basis differentials.

Q4 2021
Consolidated joint ventures (continued)

for the three months ended December 31, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 71,858 $ 97,254 $ 169,112
Straight-line rent 3,124 4,581 7,705
Fair value lease revenue (28) 81 53
Termination income — (8) (8)
Total lease revenue 74,954 101,908 176,862
Parking and other — 1,227 1,227
Insurance proceeds — 147 2 147
Total rental revenue 3 74,954 103,282 178,236
Expenses
Operating 28,036 35,282 63,318
Restoration expenses related to insurance claim — 232 2 232
Total expenses 28,036 35,514 63,550
Net Operating Income (NOI) 46,918 67,768 114,686
Other income (expense)
Development and management services revenue — 9 9
Interest and other income — 91 91
Loss from early extinguishment of debt — (104) (104)
Interest expense (21,286) (7,725) (29,011)
Depreciation and amortization expense (16,418) (22,999) (39,417)
General and administrative expense (71) (175) (246)
Total other income (expense) (37,775) (30,903) (68,678)
Net income $ 9,143 $ 36,865 $ 46,008

FUNDS FROM OPERATIONS (FFO)

BXP’s nominal ownership percentage 60% 55%
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of FFO (The GM Building) Atlantic Wharf Office Joint Ventures
Net income $ 9,143 $ 36,865 $ 46,008
Add: Depreciation and amortization expense 16,418 22,999 39,417
Entity FFO $ 25,561 $ 59,864 $ 85,425
Partners’ NCI 4 $ 2,721 $ 15,483 $ 18,204
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 6,890 10,592 17,482
Partners’ share FFO 4 $ 9,611 $ 26,075 $ 35,686
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 6,422 $ 21,382 $ 27,804
Depreciation and amortization expense - BXP’s basis difference 41 401 442
BXP’s share of depreciation and amortization expense 9,487 12,006 21,493
BXP’s share of FFO $ 15,950 $ 33,789 $ 49,739

_____________

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

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

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

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.

Q4 2021
Unconsolidated joint ventures 1

as of December 31, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 57,687 154,011 September 5, 2023 1.57 % 1.78 %
Podium 50.00 % 48,980 86,921 September 6, 2023 2.34 % 2.51 %
Hub50House 50.00 % 47,774 88,149 April 19, 2022 2.09 % 2.38 %
Hotel Air Rights 50.00 % 11,505 — — — % — %
1265 Main Street 50.00 % 3,541 18,099 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 156,639 163,970 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 231,479 274,712 August 9, 2027 3.56 % 3.58 %
Beach Cities Media Center 50.00 % 27,106 — — — % — %
New York
Dock 72 3 50.00 % 28,412 98,249 December 18, 2023 3.10 % 3.33 %
360 Park Avenue South 4 42.21 % 106,855 83,767 December 14, 2024 2.55 % 2.79 %
3 Hudson Boulevard 5 25.00 % 116,306 19,976 July 13, 2023 3.59 % 3.67 %
San Francisco
Platform 16 55.00 % 109,086 — — — % — %
Gateway Commons 6 50.00 % 327,148 — — — % — %
Seattle
Safeco Plaza 33.67 % 72,545 83,641 September 1, 2026 2.35 % 2.49 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 61,626 106,456 April 26, 2023 1.34 % 1.88 %
1001 6th Street 50.00 % 42,576 — — — % — %
Market Square North 50.00 % (1,205) 62,102 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 33,732 — — — % — %
500 North Capitol Street, N.W. 30.00 % (7,913) 31,475 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,597) 54,051 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (15,356) 58,308 July 7, 2022 5.40 % 6.90 %
1,445,926
Investments with deficit balances reflected within Other Liabilities 37,071
Investments in Unconsolidated Joint Ventures $ 1,482,997
Mortgage/Construction Loans Payable, Net $ 1,383,887

chart-a547775f4fe6489e850a.jpg

Q4 2021
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 60.81 % 2.43 % 2.77 % 2.0
Fixed Rate Debt 39.19 % 3.76 % 3.84 % 4.6
Total Debt 100.00 % 2.95 % 3.19 % 3.0

_____________

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

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

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

4 The Company’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.

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

6 As a result of the partner’s deferred contribution, the Company owned an approximately 50% interest in the joint venture at December 31, 2021. Future development projects will be owned 49% by the Company and 51% by its partner.

Q4 2021
Unconsolidated joint ventures (continued)

for the three months ended December 31, 2021

(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 $ 24,050 $ 29,195 $ 3,620 $ 11,743 $ 6,652 $ 27,833 $ 103,093
Straight-line rent (1,968) 5,205 54 250 609 1,465 5,615
Fair value lease revenue — 339 — 38 1,141 — 1,518
Termination income 183 (7) — — — — 176
Total lease revenue 22,265 34,732 3,674 12,031 8,402 29,298 110,402
Parking and other 47 2,367 — 1 238 1,407 4,060
Total rental revenue 3 22,312 37,099 3,674 12,032 8,640 30,705 114,462
Expenses
Operating 7,950 12,764 4,247 4,440 3,215 11,406 44,022
Net operating income/(loss) 14,362 24,335 (573) 7,592 5,425 19,299 70,440
Other income/(expense)
Development and management services revenue — — 439 240 — — 679
Interest and other income — 5 — 2 — — 7
Interest expense (3,784) (12,061) (2,598) (3) (1,589) (10,138) (30,173)
Transaction costs — — (463) — — — (463)
Depreciation and amortization expense (7,663) (13,271) (2,758) (5,282) (5,093) (9,288) (43,355)
General and administrative expense — (103) (3) (8) (2) (61) (177)
Total other income/(expense) (11,447) (25,430) (5,383) (5,051) (6,684) (19,487) (73,482)
Net income/(loss) $ 2,915 $ (1,095) $ (5,956) $ 2,541 $ (1,259) $ (188) $ (3,042)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ 1,458 $ (745) $ (2,842) $ 1,270 $ (425) $ 1,298 4 $ 14
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 7 6 $ — $ — $ 98
Fair value lease revenue — 301 5 — (220) 6 — — 81
Termination income — — — — — — —
Depreciation and amortization expense (35) (743) 5 375 (507) 6 — (108) (1,018)
Total basis differential 7 (35) (351) 5 375 (720) 6 — (108) (839)
Income/(loss) from unconsolidated joint ventures 1,423 (1,096) (2,467) 550 (425) 1,190 4 (825)
Add:
BXP’s share of depreciation and amortization expense 3,866 7,763 1,004 3,266 1,715 2,787 4 20,401
BXP’s share of FFO $ 5,289 $ 6,667 $ (1,463) $ 3,816 $ 1,290 $ 3,977 $ 19,576

_____________

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

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

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

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

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

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

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

Q4 2021
Lease expirations - All in-service properties1, 2, 3

as of December 31, 2021

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 235,106 10,331,216 62.94 0.43 % 4
2022 2,527,750 138,299,831 62.68 5.77 %
2023 2,313,572 136,078,536 67.73 5.25 %
2024 3,758,095 211,274,611 63.23 8.73 %
2025 2,637,433 159,530,490 66.18 6.30 %
2026 3,271,914 199,618,440 74.02 7.05 %
2027 2,095,081 127,970,565 69.22 4.83 %
2028 2,857,532 165,683,593 72.07 6.01 %
2029 2,797,381 168,078,272 69.53 6.32 %
2030 2,365,288 168,602,928 73.99 5.95 %
Thereafter 15,001,959 914,395,661 76.57 31.20 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 9,593 737,529 76.88 0.42 % 4
2022 260,025 10,483,940 40.48 11.29 %
2023 121,075 8,889,391 74.60 5.19 %
2024 168,976 15,417,186 97.41 6.90 %
2025 98,762 7,510,411 87.67 3.73 %
2026 119,674 17,413,288 161.74 4.69 %
2027 122,767 13,694,159 121.89 4.90 %
2028 65,419 7,901,902 127.16 2.71 %
2029 133,411 11,025,676 100.13 4.80 %
2030 196,925 11,268,504 70.86 6.93 %
Thereafter 663,245 63,428,641 122.26 22.61 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 244,699 11,068,745 63.71 0.43 % 4
2022 2,787,775 148,783,771 60.34 6.08 %
2023 2,434,647 144,967,927 68.11 5.25 %
2024 3,927,071 226,691,797 64.78 8.63 %
2025 2,736,195 167,040,901 66.92 6.15 %
2026 3,391,588 217,031,728 77.39 6.91 %
2027 2,217,848 141,664,724 72.23 4.83 %
2028 2,922,951 173,585,495 73.52 5.82 %
2029 2,930,792 179,103,948 70.86 6.23 %
2030 2,562,213 179,871,432 73.78 6.01 %
Thereafter 15,665,204 977,824,302 78.47 30.72 %

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Lease expirations - Boston region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 1,008 1,008 4
2022 987,183 919,446
2023 900,307 807,192
2024 928,867 896,480
2025 1,080,247 1,061,134
2026 843,008 811,697
2027 477,653 469,853
2028 1,070,955 1,070,955
2029 807,024 677,438
2030 1,302,646 1,295,973
Thereafter 4,528,011 3,608,919

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 174,668 174,353
2023 44,834 44,834
2024 81,404 81,404
2025 38,874 38,874
2026 26,512 26,512
2027 73,941 67,627
2028 45,230 45,230
2029 56,791 55,441
2030 88,800 54,405
Thereafter 151,064 110,954

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 1,008 1,008 4
2022 1,161,851 1,093,799
2023 945,141 852,026
2024 1,010,271 977,884
2025 1,119,121 1,100,008
2026 869,520 838,209
2027 551,594 537,480
2028 1,116,185 1,116,185
2029 863,815 732,879
2030 1,391,446 1,350,378
Thereafter 4,679,075 3,719,873

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 1,008 1,008 4
Total 2021 1,008 1,008
Q1 2022 136,186 129,397
Q2 2022 131,752 131,721
Q3 2022 161,246 158,514
Q4 2022 557,999 499,814
Total 2022 987,183 919,446

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 153,631 153,316
Q2 2022 9,287 9,287
Q3 2022 11,511 11,511
Q4 2022 239 239
Total 2022 174,668 174,353

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 1,008 1,008 4
Total 2021 1,008 1,008
Q1 2022 289,817 282,713
Q2 2022 141,039 141,008
Q3 2022 172,757 170,025
Q4 2022 558,238 500,053
Total 2022 1,161,851 1,093,799

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 49,169 26,758
2023 94,066 51,736
2024 132,131 72,672
2025 11,419 6,280
2026 588,021 323,412
2027 — —
2028 301,388 155,984
2029 349,913 174,957
2030 — —
Thereafter 418,223 209,112

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 49,169 26,758
2023 95,471 52,439
2024 136,464 74,955
2025 28,637 15,661
2026 593,848 326,617
2027 — —
2028 301,388 155,984
2029 388,031 195,922
2030 5,283 2,906
Thereafter 418,223 209,112

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

Q4 2021
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 1,809 995
Q2 2022 18,785 10,332
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 49,169 26,758

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 1,809 995
Q2 2022 18,785 10,332
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 49,169 26,758

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

Q4 2021
Lease expirations - New York region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,891 5,891 4
2022 696,314 561,314
2023 379,604 291,415
2024 1,304,196 1,060,183
2025 589,995 524,535
2026 584,341 458,289
2027 499,703 404,440
2028 230,144 208,098
2029 654,531 624,752
2030 652,930 616,241
Thereafter 4,256,864 3,189,927

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 5,072 5,001
2023 1,847 1,108
2024 11,244 8,623
2025 — —
2026 22,954 19,030
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
Thereafter 308,705 229,426

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,891 5,891 4
2022 701,386 566,315
2023 381,451 292,523
2024 1,315,440 1,068,806
2025 589,995 524,535
2026 607,295 477,319
2027 499,703 404,440
2028 230,144 208,098
2029 657,666 627,887
2030 655,825 618,294
Thereafter 4,565,569 3,419,353

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2Includes partially placed in-service leased space.

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

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

Q4 2021
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 5,891 5,891 4
Total 2021 5,891 5,891
Q1 2022 80,521 64,873
Q2 2022 44,588 43,073
Q3 2022 360,553 269,706
Q4 2022 210,652 183,662
Total 2022 696,314 561,314

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 715 715
Q2 2022 178 107
Q3 2022 4,179 4,179
Q4 2022 — —
Total 2022 5,072 5,001

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 5,891 5,891 4
Total 2021 5,891 5,891
Q1 2022 81,236 65,588
Q2 2022 44,766 43,180
Q3 2022 364,732 273,885
Q4 2022 210,652 183,662
Total 2022 701,386 566,315

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2Includes partially placed in-service leased space.

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

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

Q4 2021
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 207,284 138,774 4
2022 385,349 367,741
2023 614,303 556,097
2024 703,601 660,761
2025 518,788 501,280
2026 645,462 558,013
2027 472,905 469,582
2028 524,953 512,697
2029 264,489 246,205
2030 269,363 267,319
Thereafter 1,718,666 1,673,961

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 4,631 4,631 4
2022 30,347 30,347
2023 33,334 33,334
2024 7,175 7,175
2025 25,732 25,732
2026 14,361 14,361
2027 11,209 11,209
2028 9,722 9,722
2029 9,944 9,944
2030 4,590 4,590
Thereafter 52,287 48,933

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 211,915 143,405 63.18 4
2022 415,696 398,088
2023 647,637 589,431
2024 710,776 667,936
2025 544,520 527,012
2026 659,823 572,374
2027 484,114 480,791
2028 534,675 522,419
2029 274,433 256,149
2030 273,953 271,909
Thereafter 1,770,953 1,722,894

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2Includes partially placed in-service leased space.

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

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

Q4 2021
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 207,284 138,774 4
Total 2021 207,284 138,774
Q1 2022 41,107 41,107
Q2 2022 126,424 119,496
Q3 2022 128,903 125,395
Q4 2022 88,915 81,744
Total 2022 385,349 367,741

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 4,631 4,631 4
Total 2021 4,631 4,631
Q1 2022 5,204 5,204
Q2 2022 505 505
Q3 2022 1,834 1,834
Q4 2022 22,804 22,804
Total 2022 30,347 30,347

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 211,915 143,405 4
Total 2021 211,915 143,405
Q1 2022 46,311 46,311
Q2 2022 126,929 120,001
Q3 2022 130,737 127,229
Q4 2022 111,719 104,548
Total 2022 415,696 398,088

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

2Includes partially placed in-service leased space.

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

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

Q4 2021
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 17,214 17,214 4
2022 337,727 307,080
2023 304,806 295,805
2024 654,297 639,433
2025 417,130 310,595
2026 611,082 545,421
2027 644,820 504,984
2028 222,733 180,477
2029 721,424 694,150
2030 140,349 99,292
Thereafter 4,058,603 3,253,337

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 4,962 4,962 4
2022 49,938 49,304
2023 39,655 39,179
2024 63,780 58,432
2025 16,938 11,679
2026 46,334 43,310
2027 37,617 33,515
2028 10,467 7,191
2029 25,423 20,626
2030 95,357 95,082
Thereafter 151,189 129,497

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 22,176 22,176 4
2022 387,665 356,384
2023 344,461 334,984
2024 718,077 697,865
2025 434,068 322,274
2026 657,416 588,731
2027 682,437 538,499
2028 233,200 187,668
2029 746,847 714,776
2030 235,706 194,374
Thereafter 4,209,792 3,382,834

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 52.

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

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

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

Q4 2021
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 17,214 17,214 4
Total 2021 17,214 17,214
Q1 2022 60,446 34,287
Q2 2022 115,604 112,731
Q3 2022 67,048 65,433
Q4 2022 94,629 94,629
Total 2022 337,727 307,080

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 4,962 4,962 4
Total 2021 4,962 4,962
Q1 2022 7,375 7,375
Q2 2022 14,203 14,203
Q3 2022 2,816 2,816
Q4 2022 25,544 24,910
Total 2022 49,938 49,304

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 22,176 22,176 4
Total 2021 22,176 22,176
Q1 2022 67,821 41,662
Q2 2022 129,807 126,934
Q3 2022 69,864 68,249
Q4 2022 120,173 119,539
Total 2022 387,665 356,384

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Lease expirations - CBD properties 1, 2, 3

as of December 31, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 1,008 1,008 4
2022 460,708 392,656
2023 587,400 494,285
2024 464,103 431,716
2025 319,125 300,012
2026 631,273 599,962
2027 416,801 402,686
2028 960,445 960,445
2029 573,243 442,307
2030 1,291,272 1,250,204
Thereafter 3,992,569 3,090,851

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 49,169 26,758
2023 95,471 52,439
2024 136,464 74,955
2025 28,637 15,662
2026 593,848 326,616
2027 — —
2028 301,388 155,984
2029 388,031 195,921
2030 5,283 2,906
Thereafter 418,223 209,112

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,891 5,891 4
2022 568,473 433,402
2023 334,932 246,004
2024 819,817 573,183
2025 364,256 298,796
2026 370,329 240,353
2027 280,197 184,934
2028 227,939 205,893
2029 601,873 572,094
2030 608,651 571,119
Thereafter 4,270,519 3,124,303

All values are in US Dollars.

Q4 2021
Lease expirations - CBD properties (continued) 1, 2, 3

as of December 31, 2021

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 15,643 15,643 4
2022 332,654 332,654
2023 341,556 341,556
2024 518,308 518,308
2025 312,527 312,527
2026 484,924 484,924
2027 395,127 395,127
2028 510,163 510,163
2029 237,865 237,865
2030 269,865 269,865
Thereafter 1,674,833 1,674,833

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 128,934 97,653
2023 44,785 35,307
2024 183,933 163,721
2025 168,844 57,050
2026 357,804 289,119
2027 222,237 78,298
2028 170,409 124,877
2029 86,288 54,217
2030 62,605 21,273
Thereafter 1,449,926 989,710

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Lease expirations - Suburban properties 1, 2, 3

as of December 31, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 701,143 701,143
2023 357,741 357,741
2024 546,168 546,168
2025 799,996 799,996
2026 238,247 238,247
2027 134,793 134,793
2028 155,740 155,740
2029 290,572 290,572
2030 100,174 100,174
Thereafter 686,506 629,022

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 132,913 132,913
2023 46,519 46,519
2024 495,623 495,623
2025 225,739 225,739
2026 236,966 236,966
2027 219,506 219,506
2028 2,205 2,205
2029 55,793 55,793
2030 47,174 47,174
Thereafter 295,050 295,050

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 196,272 127,762 4
2022 83,042 65,434
2023 306,081 247,875
2024 192,468 149,628
2025 231,993 214,485
2026 174,899 87,450
2027 88,987 85,664
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
Thereafter 96,120 48,060

All values are in US Dollars.

Q4 2021
Lease expirations - Suburban properties (continued) 1, 2, 3

as of December 31, 2021

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 22,176 22,176 4
2022 258,731 258,731
2023 299,676 299,676
2024 534,144 534,144
2025 265,224 265,224
2026 299,612 299,612
2027 460,200 460,200
2028 62,791 62,791
2029 660,559 660,559
2030 173,101 173,101
Thereafter 2,759,866 2,393,125

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 52.

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

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

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

Q4 2021
Research coverage

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

Equity Research Coverage
Argus Research Company Angus Kelleher 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs & Company, Inc. Caitlin Burrows 801.741.5459
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Peter Abramowitz / Jonathan Peterson 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Craig Mailman / Jordan Sadler 917.368.2316 / 917.368.2280
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamden 212.296.8319
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb 212.466.7937
RW Baird & Co., Inc. David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
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Bank of America Merrill Lynch Andrew Molloy 646.855.6435
Barclays Peter Troisi 212.412.3695
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.715.8455 / 704.410.3252 Rating Agencies
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Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q4 2021
--- ---
Definitions

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

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 56.

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q4 2021
Definitions (continued)

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q4 2021
Definitions (continued)

Funds from Operations (FFO)

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

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

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q4 2021
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q4 2021
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Dec-21 30-Sep-21
Revenue $ 731,063 $ 730,056
Partners’ share of revenue from consolidated joint ventures (JVs) (76,463) (76,953)
BXP’s share of revenue from unconsolidated JVs 53,919 43,210
BXP’s Share of revenue $ 708,519 $ 696,313
Straight-line rent $ 30,619 $ 36,675
Partners’ share of straight-line rent from consolidated JVs (3,311) (3,693)
BXP’s share of straight-line rent from unconsolidated JVs 2,821 2,829
BXP’s Share of straight-line rent $ 30,129 $ 35,811
Fair value lease revenue 1 $ 1,412 $ 1,408
Partners’ share of fair value lease revenue from consolidated JVs 1 (25) (25)
BXP’s share of fair value lease revenue from unconsolidated JVs 1 671 410
BXP’s Share of fair value lease revenue 1 $ 2,058 $ 1,793
Lease termination income $ (16) $ 1,874
Partners’ share of termination income from consolidated JVs 4 (10)
BXP’s share of termination income from unconsolidated JVs 88 (17)
BXP’s Share of termination income $ 76 $ 1,847
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 $ 22,940 $ 21,266
Partners’ share of parking and other revenue from consolidated JVs (552) (539)
BXP’s share of parking and other revenue from unconsolidated JVs 1,837 1,831
BXP’s Share of parking and other revenue $ 24,225 $ 22,558
Cash rent abatements and deferrals related to COVID-19 $ 7,196 $ 8,042
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs 20 27
BXP’s share of cash rent abatements and deferrals related to COVID-19 from unconsolidated JVs 9 (6)
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 7,225 $ 8,063
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446
Straight-line ground rent expense adjustment 2 $ 732 $ 788
Partners’ share of straight-line ground rent expense adjustment from consolidated JVs — —
BXP’s share of straight-line ground rent expense adjustment from unconsolidated JVs 145 208
BXP’s Share of straight-line ground rent expense adjustment 2 $ 877 $ 996
Depreciation and amortization $ 177,521 $ 179,412
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,482) (16,773)
BXP’s share of depreciation and amortization from unconsolidated JVs 20,401 17,803
BXP’s Share of depreciation and amortization $ 180,440 $ 180,442 Q4 2021
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
31-Dec-21 30-Sep-21
Lease transaction costs that qualify as rent inducements 3 $ 3,731 $ 4,090
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (892) (1,078)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 569 367
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 3,408 $ 3,379
2nd generation tenant improvements and leasing commissions $ 68,989 $ 28,253
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (5,245) (3,356)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 19,267 929
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 83,011 $ 25,826 Maintenance capital expenditures 4 $ 33,919 $ 17,779
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (6,356) (1,171)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 180 192
BXP’s Share of maintenance capital expenditures 4 $ 27,743 $ 16,800
Interest expense $ 103,331 $ 105,794
Partners’ share of interest expense from consolidated JVs (11,987) (11,996)
BXP’s share of interest expense from unconsolidated JVs 13,148 11,915
BXP’s Share of interest expense $ 104,492 $ 105,713
Capitalized interest $ 13,839 $ 11,586
Partners’ share of capitalized interest from consolidated JVs (43) (28)
BXP’s share of capitalized interest from unconsolidated JVs 450 817
BXP’s Share of capitalized interest $ 14,246 $ 12,375
Amortization of financing costs $ 3,399 $ 3,365
Partners’ share of amortization of financing costs from consolidated JVs (408) (382)
BXP’s share of amortization of financing costs from unconsolidated JVs 814 604
BXP’s Share of amortization of financing costs $ 3,805 $ 3,587

_____________

1Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

2For the three months ended September 30, 2021, amount excludes $(23.0) million of prepaid ground rent expense in connection with the ground lease at Sumner Square located in Washington, DC.

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.

Q4 2021
Reconciliations (continued)

for the three months ended December 31, 2021

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 71,858 $ 97,254 $ 169,112
Straight-line rent 3,124 4,581 7,705
Fair value lease revenue (28) 81 53
Termination income — (8) (8)
Total lease revenue 74,954 101,908 176,862
Parking and other — 1,227 1,227
Insurance proceeds — 147 2 147
Total rental revenue 3 74,954 103,282 178,236
Expenses
Operating 28,036 35,282 63,318
Restoration expenses related to insurance claim — 232 2 232
Total expenses 28,036 35,514 63,550
Net Operating Income (NOI) 46,918 67,768 114,686
Other income (expense)
Development and management services revenue — 9 9
Interest and other income — 91 91
Loss from early extinguishment of debt — (104) (104)
Interest expense (21,286) (7,725) (29,011)
Depreciation and amortization expense (16,418) (22,999) (39,417)
General and administrative expense (71) (175) (246)
Total other income (expense) (37,775) (30,903) (68,678)
Net income $ 9,143 $ 36,865 $ 46,008
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 4 $ 18,153 $ 29,688 $ 47,841
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 28,765 $ 38,080 $ 66,845
Unearned portion of capitalized fees 5 $ 629 $ 969 $ 1,598
Partners’ share of select items 4
Partners’ share of parking and other revenue $ — $ 552 $ 552
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 62 $ 408
Partners’ share of depreciation and amortization related to capitalized fees $ 339 $ 423 $ 762
Partners’ share of capitalized interest $ 43 $ — $ 43
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (892) $ (892)
Partners’ share of management and other fees $ 617 $ 846 $ 1,463
Partners’ share of basis differential depreciation and amortization expense $ (16) $ (180) $ (196)
Partners’ share of basis differential interest and other adjustments $ (4) $ 19 $ 15
Reconciliation of Partners’ share of EBITDAre 6
Partners’ NCI $ 2,721 $ 15,483 $ 18,204
Add:
Partners’ share of interest expense after BXP’s basis differential 8,511 3,476 11,987
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,890 10,592 17,482
Partners’ share of EBITDAre $ 18,122 $ 29,551 $ 47,673
Q4 2021
--- ---
Reconciliations (continued)

for the three months ended December 31, 2021

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 4 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 3 $ 29,982 $ 46,477 $ 76,459
Less: Termination income — (4) (4)
Rental revenue (excluding termination income) 3 29,982 46,481 76,463
Less: Operating expenses (including partners’ share of management and other fees) 11,829 16,810 28,639
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,153 $ 29,692 $ 47,845
Rental revenue (excluding termination income) 3 $ 29,982 $ 46,481 $ 76,463
Less: Straight-line rent 1,250 2,061 2 3,311
Fair value lease revenue (11) 36 25
Add: Lease transaction costs that qualify as rent inducements — 892 892
Subtotal 28,743 45,276 74,019
Less: Operating expenses (including partners’ share of management and other fees) 11,829 16,810 28,639
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,914 $ 28,487 $ 45,401
Reconciliation of Partners’ share of Revenue 4
Rental revenue 3 $ 29,982 $ 46,477 $ 76,459
Add: Development and management services revenue — 4 4
Revenue $ 29,982 $ 46,481 $ 76,463

_________

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

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

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

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.

Q4 2021
Reconciliations (continued)

for the three months ended December 31, 2021

(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 $ 24,050 $ 29,195 $ 3,620 $ 11,743 $ 6,652 $ 27,833 $ 103,093
Straight-line rent (1,968) 5,205 54 250 609 1,465 5,615
Fair value lease revenue — 339 — 38 1,141 — 1,518
Termination income 183 (7) — — — — 176
Total lease revenue 22,265 34,732 3,674 12,031 8,402 29,298 110,402
Parking and other 47 2,367 — 1 238 1,407 4,060
Total rental revenue 3 22,312 37,099 3,674 12,032 8,640 30,705 114,462
Expenses
Operating 7,950 12,764 4,247 4 4,440 3,215 11,406 44,022
Net operating income/(loss) 14,362 24,335 (573) 7,592 5,425 19,299 70,440
Other income/(expense)
Development and management services revenue — — 439 240 — — 679
Interest and other income — 5 — 2 — — 7
Interest expense (3,784) (12,061) (2,598) (3) (1,589) (10,138) (30,173)
Transaction costs — — (463) — — — (463)
Depreciation and amortization expense (7,663) (13,271) (2,758) (5,282) (5,093) (9,288) (43,355)
General and administrative expense — (103) (3) (8) (2) (61) (177)
Total other income/(expense) (11,447) (25,430) (5,383) (5,051) (6,684) (19,487) (73,482)
Net income/(loss) $ 2,915 $ (1,095) $ (5,956) $ 2,541 $ (1,259) $ (188) $ (3,042)
BXP’s share of parking and other revenue $ 24 $ 1,248 $ — $ 1 $ 80 $ 484 5 $ 1,837
BXP’s share of amortization of financing costs $ 195 $ 85 $ 85 $ — $ 29 $ 420 5 $ 814
BXP’s share of capitalized interest $ 84 $ — $ 257 $ — $ — $ 109 5 $ 450
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ 1,423 $ (1,096) $ (2,467) $ 550 $ (425) $ 1,190 5 $ (825)
Add:
BXP’s share of interest expense 1,893 6,382 1,078 2 535 3,258 5 13,148
BXP’s share of depreciation and amortization expense 3,866 7,763 6 1,004 3,266 7 1,715 2,787 5 20,401
BXP’s share of EBITDAre $ 7,182 $ 13,049 6 $ (385) $ 3,818 7 $ 1,825 $ 7,235 5 $ 32,724 Q4 2021
--- ---
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 $ 11,157 $ 19,856 6 $ 1,837 $ 5,814 7 $ 2,909 $ 12,006 5 $ 53,579
BXP’s share of operating expenses 3,975 6,750 1,984 2,224 1,082 4,286 5 20,301
BXP’s share of net operating income/(loss) 7,182 13,106 6 (147) 3,590 7 1,827 7,720 5 33,278
Less:
BXP’s share of termination income 92 (4) — — — — 88
BXP’s share of net operating income/(loss) (excluding termination income) 7,090 13,110 (147) 3,590 1,827 7,720 5 33,190
Less:
BXP’s share of straight-line rent (984) 2,797 6 27 132 7 205 644 5 2,821
BXP’s share of fair value lease revenue — 488 6 — (201) 7 384 — 671
Add:
BXP’s share of straight-line ground rent expense adjustment — — 145 — — — 145
BXP’s share of lease transaction costs that qualify as rent inducements — 341 — — 22 206 5 569
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 8,074 $ 10,166 6 $ (29) $ 3,659 7 $ 1,260 $ 7,282 5 $ 30,412
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 11,157 $ 19,856 6 $ 1,837 $ 5,814 7 $ 2,909 $ 12,006 5 $ 53,579
Add:
BXP’s share of development and management services revenue — — 220 120 — — 340
BXP’s share of revenue $ 11,157 $ 19,856 6 $ 2,057 $ 5,934 7 $ 2,909 $ 12,006 5 $ 53,919

_____________

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

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

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

4 Includes approximately $290 of straight-line ground rent expense.

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

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

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

Q4 2021
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Sept-21 30-Sept-20
Net income attributable to Boston Properties, Inc. common shareholders $ 108,297 $ 89,854
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 108,297 92,479
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,982 10,020
Noncontrolling interest in property partnerships 18,971 15,561
Net income 139,250 118,060
Add:
Interest expense 105,794 110,993
Depreciation and amortization expense 179,412 166,456
Transaction costs 1,888 307
Payroll and related costs from management services contracts 3,006 2,896
General and administrative expense 34,560 27,862
Less:
Interest and other income (loss) 1,520 (45)
Gains (losses) from investments in securities (190) 1,858
Gains (losses) on sales of real estate 348 (209)
Income (loss) from unconsolidated joint ventures (5,597) (6,873)
Direct reimbursements of payroll and related costs from management services contracts 3,006 2,896
Development and management services revenue 6,094 7,281
Net Operating Income (NOI) 458,729 421,666
Add:
BXP’s share of NOI from unconsolidated joint ventures 24,266 24,938
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,800 42,160
BXP’s Share of NOI 435,195 404,444
Less:
Termination income 1,874 3,406
BXP’s share of termination income from unconsolidated joint ventures (17) —
Add:
Partners’ share of termination income from consolidated joint ventures 10 556
BXP’s Share of NOI (excluding termination income) $ 433,348 $ 401,594
Net Operating Income (NOI) $ 458,729 $ 421,666
Less:
Termination income 1,874 3,406
NOI from non Same Properties (excluding termination income) 5,227 1,842
Same Property NOI (excluding termination income) 451,628 416,418
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 47,790 41,604
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,502 (70)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 24,283 24,938
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 1,827 1,394
BXP’s Share of Same Property NOI (excluding termination income) $ 427,796 $ 398,288
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 29,508
Change in BXP’s Share of Same Property NOI (excluding termination income) 7.4 %
Q4 2021
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Sept-21 30-Sept-20
Net income attributable to Boston Properties, Inc. common shareholders $ 108,297 $ 89,854
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 108,297 92,479
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,982 10,020
Noncontrolling interest in property partnerships 18,971 15,561
Net income 139,250 118,060
Add:
Interest expense 105,794 110,993
Depreciation and amortization expense 179,412 166,456
Transaction costs 1,888 307
Payroll and related costs from management services contracts 3,006 2,896
General and administrative expense 34,560 27,862
Less:
Interest and other income (loss) 1,520 (45)
Gains (losses) from investments in securities (190) 1,858
Gains (losses) on sales of real estate 348 (209)
Income (loss) from unconsolidated joint ventures (5,597) (6,873)
Direct reimbursements of payroll and related costs from management services contracts 3,006 2,896
Development and management services revenue 6,094 7,281
Net Operating Income (NOI) 458,729 421,666
Less:
Straight-line rent 36,675 46,713
Fair value lease revenue 1,408 (662)
Termination income 1,874 3,406
Add:
Straight-line ground rent expense adjustment 1 748 799
Lease transaction costs that qualify as rent inducements 2 4,090 3,966
NOI - cash (excluding termination income) 423,610 376,974
Less:
NOI - cash from non Same Properties (excluding termination income) 3,732 1,542
Same Property NOI - cash (excluding termination income) 419,878 375,432
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 45,150 35,318
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,075 (64)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 21,619 22,288
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 1,634 (124)
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 395,788 $ 362,462
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 33,326
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 9.2 %

_____________

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 $40 and $98 for the three months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

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

Q4 2021
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

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

64

Document

Exhibit 99.2

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BOSTON PROPERTIES ANNOUNCES 4TH QUARTER AND FULL YEAR 2021 RESULTS; REPORTS Q4 EPS OF $1.18 AND FFO PER SHARE OF $1.55

Exceeds Full-Year 2021 Guidance for EPS and FFO; Executes 1.8 Million Square Feet of Leases in Q4, and a Total of 5.1 Million Square Feet in 2021

BOSTON, MA, January 25, 2022 - Boston Properties, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of Class A office properties in the United States, reported results today for the fourth quarter and full year ended December 31, 2021.

Financial highlights for the fourth quarter include:

•Revenue grew approximately 10% to $731.1 million for the quarter ended December 31, 2021 as compared to $665.1 million for the quarter ended December 31, 2020.

•Net income attributable to common shareholders of $184.5 million, or $1.18 per diluted share (EPS), compared to $7.3 million, or $0.05 per diluted share, for the quarter ended December 31, 2020.

•Funds from Operations (FFO) of $243.0 million, or $1.55 per diluted share, compared to FFO of $213.1 million, or $1.37 per diluted share, for the quarter ended December 31, 2020.

•The Company exceeded the mid-point of its EPS and FFO guidance for the fourth quarter of 2021 by $0.05 per diluted share, primarily due to improvement in portfolio performance.

The Company provided guidance for the first quarter of 2022 for EPS of $0.67 - $0.69 and FFO of $1.72 - $1.74 per diluted share and full-year 2022 EPS of $3.00 - $3.15 and FFO of $7.30 - $7.45 per diluted share. See “EPS and FFO per Share Guidance” below.

Fourth quarter and recent business highlights include:

•Executed approximately 1.8 million square feet of leases having a weighted-average lease term of 8.6 years.

•Delivered four development projects:

◦Completed and fully placed in-service 100 Causeway Street in Boston, Massachusetts, an approximately 634,000 net rentable square foot Class A office building in which the Company has a 50% ownership interest. Including leases that have not yet commenced, this project is 95% leased.

◦Completed and fully placed in-service 7750 Wisconsin Avenue in Bethesda, Maryland, an approximately 733,000 net rentable square foot Class A office building in which the Company has a 50% ownership interest. This project is 100% leased.

◦Completed and fully placed in-service 200 West Street in Waltham, Massachusetts, an approximately 138,000 net rentable square foot redevelopment to convert a portion of

–more–

the building to laboratory space. Including leases that have not yet commenced, this project is 100% leased.

◦Partially placed in-service Reston Next in Reston, Virginia, a Class A office project with approximately 1.1 million net rentable square feet. Including leases that have not yet commenced, this project is 85% leased.

•Commenced three development projects:

◦Commenced the development of 103 CityPoint in Waltham, Massachusetts. When completed, the project will consist of approximately 113,000 net rentable square feet of life sciences space.

◦Acquired and subsequently commenced the redevelopment of 360 Park Avenue South, in New York City, an approximately 450,000 net rentable square foot office building in which the Company has a 42% interest through a joint venture formed under its Strategic Capital Program (“SCP”). The property is financed with a $220 million, three-year mortgage loan (with two, one-year extension options), which bears interest at a variable rate equal to the Adjusted Term SOFR plus 2.40%.

◦In January 2022, commenced the redevelopment of 651 Gateway in South San Francisco. 651 Gateway is an approximately 300,000 net rentable square foot office building that will be converted to life sciences space. This property is owned by a joint venture in which the Company has a 50% interest.

•Completed the sale of 181,191 and 201 Spring Street, in Lexington, Massachusetts on October 25, 2021 for an aggregate gross sale price of $191.5 million and net cash proceeds of approximately $179.9 million. The Company recognized a gain on sale of approximately $115.6 million. 181,191 and 201 Spring Street is a three-building, 333,000 aggregate square-foot complex that is 100% leased.

•On October 15, 2021, redeemed $1.0 billion of 3.85% unsecured senior notes that were scheduled to mature in February 2023. The Company recognized a loss from early extinguishment of debt of approximately $0.25 per diluted share, which related primarily to the redemption premium.

•On December 10, 2021, the consolidated entity in which the Company has a 55% interest refinanced the mortgage loan collateralized by its 601 Lexington Avenue property located in New York City. The mortgage loan, totaling $1.0 billion, requires interest-only payments at a fixed interest rate of 2.79% per annum until maturity on January 9, 2032. The previous mortgage loan had an outstanding balance of approximately $616.1 million, bore interest at a fixed rate of 4.75% per annum and was scheduled to mature on April 10, 2022.

•Earned national recognition as an industry leader and furthered BXP’s commitments to ESG and sustainability performance:

◦Named to Newsweek’s America’s Most Responsible Companies 2022 list. Boston Properties, Inc. ranked #1 in its industry and increased its overall rank to #31 out of the 500 companies included on this year’s list.

◦Named to the inaugural Forbes Green Growth 50 list. Boston Properties, Inc. ranked #4 among the top 50 companies that are reducing greenhouse gas emissions while growing profits.

–more–

◦Committed to reposition 140 Kendrick Street in Needham, Massachusetts, as Net Zero, Carbon Neutral, which is further defined by the LEED Zero Carbon Certification, in partnership with our tenant Wellington Management.

Financial results for the year ended December 31, 2021 include:

•Net income attributable to common shareholders of $496.2 million, or $3.17 per diluted share (EPS), compared to $862.2 million, or $5.54 per diluted share, for the year ended December 31, 2020 due primarily to $495.3 million of higher gains on asset sales in 2020.

•Funds from Operations (FFO) of $1.0 billion, or $6.56 per diluted share, compared to FFO of $978.2 million, or $6.29 per diluted share, for the year ended December 31, 2020.

Full year 2021 business highlights include:

•Executed a total of approximately 5.1 million square feet of leases in 2021 compared to 3.7 million square feet in 2020.

•Placed in-service five development projects and commenced development and redevelopment of seven projects, focused primarily on meeting the ongoing demand from tenants in the life sciences sector. In addition to the projects highlighted in the fourth quarter above, these projects include:

◦Completed and fully placed in-service One Five Nine East 53rd Street in New York City, a Class A office and retail redevelopment of the low-rise portion of 601 Lexington Avenue with approximately 220,000 net rentable square feet located in New York City. The property includes The Hugh, a culinary collective featuring 18 restaurants, including a wine bar and craft beer tap room, and enriched with a collection of art, murals, and greenery, and serves as Midtown East’s newest food destination.

◦Commenced development of 180 CityPoint, a 329,000 square foot lab project in Waltham, Massachusetts.

◦Commenced redevelopment of 880 Winter Street, a 224,000 square foot office property in Waltham, Massachusetts that will be converted into lab space. This project is 74% leased.

◦Commenced development of 751 Gateway, a 229,000 square foot lab project in South San Francisco, California. 751 Gateway is the first phase of a multi-phase life sciences campus development. The Company will own 49% of 751 Gateway and future development projects at Gateway Commons upon completion. This project is 100% leased.

◦Commenced redevelopment of the top floors of the Prudential Tower in Boston, Massachusetts into a 59,000 square foot, world-class observatory attraction. View Boston will be Boston’s only observatory and will feature a dramatic, 360-degree outdoor viewing deck, 11,000 square feet of outdoor space and two floors of exhibits and public spaces, marking a transformative addition to the City of Boston.

•Grew the Company’s life sciences portfolio through the following two acquisitions:

◦153 & 211 Second Avenue, two lab properties comprising approximately 137,000 square-feet in Waltham, Massachusetts, a highly desirable location for leading and emerging companies in the life sciences and biotechnology sector.

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◦Shady Grove Bio+Tech Campus, consisting of seven buildings totaling approximately 435,000 square feet in the Shady Grove area of Rockville, Maryland, a region that is home to more than 400 companies in the biotechnology and life sciences sector. The Company plans to convert the office buildings on the campus to lab to meet current and growing demand in the region from biotechnology companies for new, Class A lab space.

•As part of our broader Strategic Capital Program, established a co-investment program with Canada Pension Plan Investment Board (“CPP Investments”) and GIC for future acquisitions of select office properties in the United States. The partners have targeted an aggregate of $1.0 billion of equity to the program, with BXP and CPP Investments each allocating $250 million and GIC allocating $500 million. The partnership expects to employ leverage allowing for an initial investment capacity of approximately $2.0 billion. With these capital commitments, BXP expects to be able to accelerate the pace at which it can pursue acquisition opportunities and extend its investment capacity.

•Acquired Safeco Plaza, an approximately 800,000 square-foot Class A office building in Seattle, Washington. This acquisition marks BXP’s initial entry into the Seattle market, one of the most vibrant markets in the U.S. for companies in the technology, life sciences, manufacturing, and financial services sectors. Safeco Plaza is approximately 90% leased. The Company closed the acquisition on September 1, 2021, under a joint venture in which the Company has a 33.67% interest.

•Completed two green bond offerings totaling $1.7 billion, including $850 million of 2.55% unsecured senior notes due 2032 and $850 million of 2.45% unsecured senior notes due 2033.

•Earned a top ESG rating in the 2021 Global Real Estate Sustainability Benchmark (GRESB®) assessment. The Company earned its tenth consecutive “Green Star” recognition and the highest GRESB 5-star Rating, as well as an “A” disclosure score. The Company also achieved the highest scores in several categories, including Data Monitoring & Review, Targets, Policies, Reporting, and Leadership.

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter and year ended December 31, 2021. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter and full year 2022 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space, and the earnings impact of the events referenced in this release and those referenced during the related conference call. Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of and/or refinancing of debt or resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in

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the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

First Quarter 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.67 $ 0.69 $ 3.00 $ 3.15
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05 4.30 4.30
Projected FFO per share (diluted) $ 1.72 $ 1.74 $ 7.30 $ 7.45

Boston Properties will host a conference call on Wednesday, January 26, 2022 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2021 results, provide a business update and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 8157421. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 8157421. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

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

Boston Properties (NYSE: BXP) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires, and owns a diverse portfolio of primarily Class A office space. Including properties owned by unconsolidated joint ventures, the Company’s portfolio totals 52.8 million square feet and 201 properties, including nine properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

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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 Boston Properties’ control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the effect of any relaxation or reimplementation of restrictions, and the direct and indirect impact of such measures on the U.S. and international economy and economic activity generally, the demand for office space, and our and our tenants' businesses, financial condition, results of operation, cash flows and liquidity; the emergence and characteristics of new variants, the speed, effectiveness and distribution of vaccines(including effectiveness against variant strains), whether new or existing actions or measures continue to impact the ability of our residential tenants to generate sufficient income to pay, or make them unwilling to pay rent in a timely manner, in full or at all; the health, continued service and availability of our personnel, including our key personnel and property management teams; and the effectiveness or lack of effectiveness of government relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19. In addition to the risks specific to COVID-19, other factors include, without limitation, the Company’s ability to enter into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. Boston Properties does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as may be required by law.

Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
December 31, 2021 December 31, 2020
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 22,298,103 $ 21,649,383
Construction in progress 894,172 868,773
Land held for future development 560,355 450,954
Right of use assets - finance leases 237,507 237,393
Right of use assets - operating leases 169,778 146,406
Less: accumulated depreciation (5,883,961) (5,534,102)
Total real estate 18,275,954 17,818,807
Cash and cash equivalents 452,692 1,668,742
Cash held in escrows 48,466 50,587
Investments in securities 43,632 39,457
Tenant and other receivables, net 60,513 77,411
Related party note receivable, net 78,336 77,552
Note receivables, net 9,641 18,729
Accrued rental income, net 1,226,745 1,122,502
Deferred charges, net 618,798 640,085
Prepaid expenses and other assets 57,811 33,840
Investments in unconsolidated joint ventures 1,482,997 1,310,478
Total assets $ 22,355,585 $ 22,858,190
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,267,914 $ 2,909,081
Unsecured senior notes, net 9,483,695 9,639,287
Unsecured line of credit 145,000 —
Unsecured term loan, net — 499,390
Lease liabilities - finance leases 244,421 236,492
Lease liabilities - operating leases 204,561 201,713
Accounts payable and accrued expenses 312,125 336,264
Dividends and distributions payable 169,859 171,082
Accrued interest payable 94,796 106,288
Other liabilities 390,418 412,084
Total liabilities 14,312,789 14,511,681
Commitments and contingencies — —
Redeemable deferred stock units 9,568 6,897
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 — 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,623,749 and 155,797,725 issued and 156,544,849 and 155,718,825 outstanding at December 31, 2021 and December 31, 2020, respectively 1,565 1,557
Additional paid-in capital 6,497,750 6,356,791
Dividends in excess of earnings (625,911) (509,653)
Treasury common stock at cost, 78,900 shares at December 31, 2021 and December 31, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (36,662) (49,890)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,834,020 5,996,083
Noncontrolling interests:
Common units of the Operating Partnership 642,655 616,596
Property partnerships 1,556,553 1,726,933
Total equity 8,033,228 8,339,612
Total liabilities and equity $ 22,355,585 $ 22,858,190

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended December 31, Year ended December 31,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Revenue
Lease $ 690,912 $ 639,357 $ 2,753,014 $ 2,646,261
Parking and other 23,087 15,903 81,814 70,680
Hotel revenue 6,227 464 13,609 7,478
Development and management services 7,516 6,356 27,697 29,641
Direct reimbursements of payroll and related costs from management services contracts 3,321 3,009 12,487 11,626
Total revenue 731,063 665,089 2,888,621 2,765,686
Expenses
Operating
Rental 256,778 256,194 1,021,151 1,017,208
Hotel 5,005 1,178 12,998 13,136
General and administrative 33,649 31,053 151,573 133,112
Payroll and related costs from management services contracts 3,321 3,009 12,487 11,626
Transaction costs 2,066 277 5,036 1,531
Depreciation and amortization 177,521 168,013 717,336 683,751
Total expenses 478,340 459,724 1,920,581 1,860,364
Other income (expense)
Loss from unconsolidated joint ventures (825) (79,700) (2,570) (85,110)
Gains on sales of real estate 115,556 5,259 123,660 618,982
Interest and other income (loss) 1,564 1,676 5,704 5,953
Gains (losses) from investments in securities 1,882 4,296 5,626 5,261
Losses from early extinguishment of debt (44,284) — (45,182) —
Interest expense (103,331) (111,991) (423,346) (431,717)
Net income 223,285 24,905 631,932 1,018,691
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (18,204) (13,980) (70,806) (48,260)
Noncontrolling interest—common units of the Operating Partnership (20,544) (990) (55,931) (97,704)
Net income attributable to Boston Properties, Inc. 184,537 9,935 505,195 872,727
Preferred dividends — (2,625) (2,560) (10,500)
Preferred stock redemption charge — — (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 184,537 $ 7,310 $ 496,223 $ 862,227
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 1.18 $ 0.05 $ 3.18 $ 5.54
Weighted average number of common shares outstanding 156,297 155,682 156,116 155,432
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 1.18 $ 0.05 $ 3.17 $ 5.54
Weighted average number of common and common equivalent shares outstanding 156,654 155,731 156,376 155,517

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended December 31, Year ended December 31,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 184,537 $ 7,310 $ 496,223 $ 862,227
Add:
Preferred stock redemption charge — — 6,412 —
Preferred dividends — 2,625 2,560 10,500
Noncontrolling interest - common units of the Operating Partnership 20,544 990 55,931 97,704
Noncontrolling interests in property partnerships 18,204 13,980 70,806 48,260
Net income 223,285 24,905 631,932 1,018,691
Add:
Depreciation and amortization expense 177,521 168,013 717,336 683,751
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,482) (15,910) (67,825) (71,850)
Company’s share of depreciation and amortization from unconsolidated joint ventures 20,401 21,168 71,966 80,925
Corporate-related depreciation and amortization (426) (441) (1,753) (1,840)
Impairment loss on investment in unconsolidated joint venture — 60,524 — 60,524
Less:
Gains on sale of investment included within loss from unconsolidated joint ventures — 12 10,257 5,958
Gains on sales of real estate 115,556 5,259 123,660 618,982
Noncontrolling interests in property partnerships 18,204 13,980 70,806 48,260
Preferred dividends — 2,625 2,560 10,500
Preferred stock redemption charge — — 6,412 —
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 269,539 236,383 1,137,961 1,086,501
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 26,576 23,275 111,975 108,310
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 242,963 $ 213,108 $ 1,025,986 $ 978,191
Boston Properties, Inc.’s percentage share of funds from operations - basic 90.14 % 90.15 % 90.16 % 90.03 %
Weighted average shares outstanding - basic 156,297 155,682 156,116 155,432
FFO per share basic $ 1.55 $ 1.37 $ 6.57 $ 6.29
Weighted average shares outstanding - diluted 156,654 155,731 156,376 155,517
FFO per share diluted $ 1.55 $ 1.37 $ 6.56 $ 6.29

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

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

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Leased by Location
December 31, 2021 December 31, 2020
Boston 91.4 % 94.8 %
Los Angeles 88.8 % 93.5 %
New York 87.6 % 87.4 %
San Francisco 87.3 % 91.0 %
Seattle 1 90.9 % N/A
Washington, DC 87.2 % 84.4 %
Total Portfolio 88.8 % 90.1 %

_____________

1The Company entered the Seattle market on September 1, 2021. Therefore, there is no occupancy information provided for December 31, 2020.

AT THE COMPANY

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

(617) 236-3352

Helen Han

Vice President, Investor Relations

hhan@bxp.com

#

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