Equibles

8-K

BXP, Inc. (BXP)

8-K 2023-08-01 For: 2023-08-01
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): August 1, 2023

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

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

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

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

______________

* Filed herewith.

SIGNATURES

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

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

Date: August 1, 2023

Document

Exhibit 99.1

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Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2023

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP’s portfolio totals 54.1 million square feet and 191 properties, including 13 properties under construction/redevelopment. BXP’s properties include 170 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned an eleventh consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 54.

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 58.

GENERAL INFORMATION

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

(Cover photo: Rendering of 2100 Pennsylvania Avenue, Washington, DC)

Q2 2023
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 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 11
Acquisitions and Dispositions 12
DEVELOPMENT ACTIVITY
Construction in Progress 13
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 Clients Listing and Portfolio Client 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
Seattle 45
Washington, DC 47
CBD 49
Suburban 51
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 53
Definitions 54
Reconciliations 58
Consolidated Income Statement - Prior Year 66
Q2 2023
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Company profile

SNAPSHOT

(as of June 30, 2023)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 191
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 54.1 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 175.5 million
Closing Price, at the end of the quarter $57.59 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 6.8%
Consolidated Market Capitalization 2 $25.6 billion
BXP’s Share of Market Capitalization 2, 3 $25.8 billion
Unsecured Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

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

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

MANAGEMENT

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

___________________

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

2For additional detail, see page 26.

3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

Q2 2023
Guidance and assumptions

GUIDANCE

BXP’s guidance for the third quarter 2023 and full year 2023 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on August 1, 2023 and those referenced during the related conference call.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 56. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Third Quarter 2023 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 0.63 $ 0.65 $ 2.42 $ 2.47
Add:
Projected Company share of real estate depreciation and amortization 1.20 1.20 4.82 4.82
Projected FFO per share (diluted) $ 1.83 $ 1.85 $ 7.24 $ 7.29

ASSUMPTIONS

(dollars in thousands)

Full Year 2023
Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 89.50 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) — % 0.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 1.50 % 2.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 100,000 $ 105,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (30,000) $ (28,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 115,000 $ 125,000
Termination income $ 4,000 $ 5,000
Other revenue (expense):
Development, management services and other revenue $ 35,000 $ 37,000
General and administrative expense 1 $ (164,000) $ (157,000)
Consolidated net interest expense 2 $ (515,000) $ (505,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (154,000) $ (151,000)

_______________

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

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

Q2 2023
Financial highlights

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

Three Months Ended
30-Jun-23 31-Mar-23
Net income attributable to Boston Properties, Inc. $ 104,299 $ 77,890
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.66 $ 0.50
FFO attributable to Boston Properties, Inc. 1 $ 292,844 $ 271,951
Diluted FFO per share 1 $ 1.86 $ 1.73
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 248,588 $ 245,861
Selected items:
Revenue $ 817,153 $ 803,200
Recoveries from clients $ 129,528 $ 134,010
Service income from clients $ 2,846 $ 2,227
BXP’s Share of revenue 3 $ 805,187 $ 789,411
BXP’s Share of straight-line rent 3 $ 24,927 $ 23,863
BXP’s Share of fair value lease revenue 3, 4 $ 6,776 $ 4,579
BXP’s Share of termination income 3 $ 3,225 $ 900
Ground rent expense $ 3,441 $ 3,810
Capitalized interest $ 10,564 $ 10,589
Capitalized wages $ 4,580 $ 4,491
Loss from unconsolidated joint ventures $ (6,668) $ (7,569)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 19,088 $ 18,076
Net income attributable to noncontrolling interests in property partnerships $ 19,768 $ 18,660
FFO attributable to noncontrolling interests in property partnerships 6 $ 37,626 $ 36,371
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 3,516 $ 3,844
Below-market rents (included within Other Liabilities) $ 42,516 $ 48,694
Accrued rental income liability (included within Other Liabilities) $ 123,212 $ 127,005
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 3.18 3.27
Interest Coverage Ratio (including capitalized interest) 7 2.93 3.00
Fixed Charge Coverage Ratio 7 2.54 2.67
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.31 7.78
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 0.0 % 0.4 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 2.2 % 4.8 %
FAD Payout Ratio 2 69.23 % 69.98 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.1 % 62.7 %
Occupancy % of In-Service Properties 10 88.3 % 88.6 %
Leased % of In-Service Properties 11 90.4 % 91.0 %
Capitalization:
Consolidated Debt $ 15,456,205 $ 14,709,436
BXP’s Share of Debt 12 $ 15,706,496 $ 14,955,407
Consolidated Market Capitalization $ 25,563,883 $ 24,206,901
Consolidated Debt/Consolidated Market Capitalization 60.46 % 60.77 %
BXP’s Share of Market Capitalization 12 $ 25,814,174 $ 24,452,872
BXP’s Share of Debt/BXP’s Share of Market Capitalization 12 60.84 % 61.16 %

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

2For 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 54.

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 June 30, 2023, see page 35.

6For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

7For a quantitative reconciliation for the three months ended June 30, 2023 and March 31, 2023, see page 30.

8For a quantitative reconciliation for the three months ended June 30, 2023 and March 31, 2023, see page 29.

9For a quantitative reconciliation for the three months ended June 30, 2023 and March 31, 2023, see pages 10, 64 and 65.

10Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Excludes hotel and residential properties.

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

12For a quantitative reconciliation for June 30, 2023, see page 26.

Q2 2023
Consolidated Balance Sheets

(unaudited and in thousands)

30-Jun-23 31-Mar-23
ASSETS
Real estate $ 24,642,681 $ 24,314,813
Construction in progress 482,850 618,770
Land held for future development 637,191 626,137
Right of use assets - finance leases 237,526 237,503
Right of use assets - operating leases 166,421 166,699
Less accumulated depreciation (6,568,568) (6,424,547)
Total real estate 19,598,101 19,539,375
Cash and cash equivalents 1,581,575 918,952
Cash held in escrows 46,915 45,330
Investments in securities 33,481 32,099
Tenant and other receivables, net 91,968 85,603
Related party note receivable, net 88,834 78,544
Sales-type lease receivable, net 13,250 13,028
Accrued rental income, net 1,318,320 1,297,767
Deferred charges, net 710,820 720,174
Prepaid expenses and other assets 77,457 141,933
Investments in unconsolidated joint ventures 1,780,959 1,752,617
Total assets $ 25,341,680 $ 24,625,422
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,274,764 $ 3,273,553
Unsecured senior notes, net 10,985,395 10,240,967
Unsecured line of credit — —
Unsecured term loan, net 1,196,046 1,194,916
Lease liabilities - finance leases 251,874 250,567
Lease liabilities - operating leases 204,826 204,435
Accounts payable and accrued expenses 434,574 397,798
Dividends and distributions payable 171,465 171,427
Accrued interest payable 111,088 114,400
Other liabilities 418,813 465,276
Total liabilities 17,048,845 16,313,339
Commitments and contingencies — —
Redeemable deferred stock units 6,292 5,599
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, 156,932,300 and 156,908,693 issued and 156,853,400 and 156,829,793 outstanding at June 30, 2023 and March 31, 2023, respectively 1,569 1,568
Additional paid-in capital 6,561,161 6,549,314
Dividends in excess of earnings (516,550) (467,159)
Treasury common stock at cost, 78,900 shares at June 30, 2023 and March 31, 2023 (2,722) (2,722)
Accumulated other comprehensive loss (3,406) (18,214)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,040,052 6,062,787
Noncontrolling interests:
Common units of the Operating Partnership 689,123 691,627
Property partnerships 1,557,368 1,552,070
Total equity 8,286,543 8,306,484
Total liabilities and equity $ 25,341,680 $ 24,625,422
Q2 2023
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Jun-23 31-Mar-23
Revenue
Lease $ 761,733 $ 756,875
Parking and other 26,054 23,064
Insurance proceeds 930 945
Hotel revenue 13,969 8,101
Development and management services 9,858 8,980
Direct reimbursements of payroll and related costs from management services contracts 4,609 5,235
Total revenue 817,153 803,200
Expenses
Operating 150,735 147,182
Real estate taxes 137,566 139,432
Demolition costs 738 2,275
Restoration expenses related to insurance claims 1,997 2,419
Hotel operating 8,161 6,671
General and administrative 1 44,175 55,802
Payroll and related costs from management services contracts 4,609 5,235
Transaction costs 308 911
Depreciation and amortization 202,577 208,734
Total expenses 550,866 568,661
Other income (expense)
Loss from unconsolidated joint ventures (6,668) (7,569)
Gains from investments in securities 1 1,571 1,665
Unrealized gain on non-real estate investment 124 259
Interest and other income (loss) 17,343 10,941
Interest expense (142,473) (134,207)
Net income 136,184 105,628
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (19,768) (18,660)
Noncontrolling interest - common units of the Operating Partnership 2 (12,117) (9,078)
Net income attributable to Boston Properties, Inc. $ 104,299 $ 77,890
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.67 $ 0.50
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.66 $ 0.50

_____________

1General and administrative expense includes $1.6 million and $1.7 million and Gains from investments in securities include $1.6 million and $1.7 million for the three months ended June 30, 2023 and March 31, 2023, respectively, related to the Company’s deferred compensation plan.

2For additional detail, see page 6.

Q2 2023
Funds from operations (FFO) 1

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

Three Months Ended
30-Jun-23 31-Mar-23
Net income attributable to Boston Properties, Inc. $ 104,299 $ 77,890
Add:
Noncontrolling interest - common units of the Operating Partnership 12,117 9,078
Noncontrolling interests in property partnerships 19,768 18,660
Net income 136,184 105,628
Add:
Depreciation and amortization expense 202,577 208,734
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,858) (17,711)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 25,756 25,645
Corporate-related depreciation and amortization (442) (469)
Less:
Unrealized gain on non-real estate investment 124 259
Noncontrolling interests in property partnerships 19,768 18,660
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 326,325 302,908
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 33,481 30,957
FFO attributable to Boston Properties, Inc. $ 292,844 $ 271,951
Boston Properties, Inc.’s percentage share of Basic FFO 89.74 % 89.78 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.26 % 10.22 %
Basic FFO per share $ 1.87 $ 1.73
Weighted average shares outstanding - basic 156,826 156,803
Diluted FFO per share $ 1.86 $ 1.73
Weighted average shares outstanding - diluted 157,218 157,043

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Jun-23 31-Mar-23
Basic FFO $ 326,325 $ 302,908
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 326,325 302,908
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 33,383 30,927
Boston Properties, Inc.’s share of Diluted FFO $ 292,942 $ 271,981

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Jun-23 31-Mar-23
Shares/units for Basic FFO 174,748 174,652
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 392 240
Shares/units for Diluted FFO 175,140 174,892
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,922 17,849
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,218 157,043
Boston Properties, Inc.’s percentage share of Diluted FFO 89.77 % 89.79 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 2023, see page 35.

Q2 2023
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Jun-23 31-Mar-23
Net income attributable to Boston Properties, Inc. $ 104,299 $ 77,890
Add:
Noncontrolling interest - common units of the Operating Partnership 12,117 9,078
Noncontrolling interests in property partnerships 19,768 18,660
Net income 136,184 105,628
Add:
Depreciation and amortization expense 202,577 208,734
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,858) (17,711)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 25,756 25,645
Corporate-related depreciation and amortization (442) (469)
Less:
Unrealized gain on non-real estate investment 124 259
Noncontrolling interests in property partnerships 19,768 18,660
Basic FFO 326,325 302,908
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 3,231 5,519
BXP’s Share of hedge amortization, net of costs 1 1,750 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of straight-line ground rent expense adjustment 1, 5 811 543
Stock-based compensation 14,935 25,935
Non-real estate depreciation 442 469
Unearned portion of capitalized fees from consolidated joint ventures 6 957 622
Less:
BXP’s Share of straight-line rent 1 24,927 23,863
BXP’s Share of fair value lease revenue 1, 7 6,776 4,579
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 43,992 45,155
BXP’s Share of maintenance capital expenditures 1, 8 24,132 18,508
Amortization and accretion related to sales type lease 229 226
Hotel improvements, equipment upgrades and replacements 306 53
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 248,588 $ 245,861
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 172,092 $ 172,054
FAD Payout Ratio1 (B÷A) 69.23 % 69.98 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2For a quantitative reconciliation for the three months ended June 30, 2023, see page 32.

3For a quantitative reconciliation for the three months ended June 30, 2023, 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 2025 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

6See page 60 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.

Q2 2023
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
30-Jun-23 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 104,299 $ 222,989
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,117 25,708
Noncontrolling interest in property partnerships 19,768 18,546
Net income 136,184 267,243
Add:
Interest expense 142,473 104,142
Depreciation and amortization expense 202,577 183,146
Transaction costs 308 496
Payroll and related costs from management services contracts 4,609 3,239
General and administrative expense 44,175 34,665
Less:
Other income - assignment fee — 6,624
Interest and other income (loss) 17,343 1,195
Unrealized gain on non-real estate investment 124 —
Gains (losses) from investments in securities 1,571 (4,716)
Loss from unconsolidated joint ventures (6,668) (54)
Gains on sales of real estate — 96,247
Direct reimbursements of payroll and related costs from management services contracts 4,609 3,239
Development and management services revenue 9,858 6,354
Net Operating Income (NOI) 503,489 484,042
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 42,254 35,710
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 47,958 47,862
BXP’s Share of NOI 497,785 471,890
Less:
Termination income (164) 1,922
BXP’s share of termination income from unconsolidated joint ventures 1 3,113 (1)
Add:
Partners’ share of termination income from consolidated joint ventures 2 (276) 641
BXP’s Share of NOI (excluding termination income) $ 494,560 $ 470,610
Net Operating Income (NOI) $ 503,489 $ 484,042
Less:
Termination income (164) 1,922
NOI from non Same Properties (excluding termination income) 3 47,480 26,993
Same Property NOI (excluding termination income) 456,173 455,127
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 48,234 47,221
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 39,141 35,711
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 3,681 248
BXP’s Share of Same Property NOI (excluding termination income) $ 443,399 $ 443,369

_____________

1For a quantitative reconciliation for the three months ended June 30, 2023, see page 63.

2For a quantitative reconciliation for the three months ended June 30, 2023, see pages 60-61.

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 June 30, 2023 and therefore are no longer a part of the Company’s property portfolio.

Q2 2023
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

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

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $91 and $115 for the three months ended June 30, 2023 and 2022, respectively. As of June 30, 2023, the Company has remaining lease payments aggregating approximately $24.4 million, all of which it expects to incur by the end of 2025 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2025 may vary significantly.

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 June 30, 2023 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended June 30, 2023, see page 61.

5For a quantitative reconciliation for the three months ended June 30, 2023, see page 63.

Q2 2023
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Jun-23 30-Jun-22 Change Change 30-Jun-23 30-Jun-22 Change Change
Rental Revenue 2 $ 713,880 $ 699,101 $ 26,222 $ 25,912
Less: Termination income (164) 1,789 — —
Rental revenue (excluding termination income) 2 714,044 697,312 2.4 % 26,222 25,912 1.2 %
Less: Operating expenses and real estate taxes 270,149 253,044 17,105 6.8 % 13,944 15,053 (1,109) (7.4) %
NOI (excluding termination income) 2, 3 $ 443,895 $ 444,268 (0.1) % $ 12,278 $ 10,859 13.1 %
Rental revenue (excluding termination income) 2 $ 714,044 $ 697,312 2.4 % $ 26,222 $ 25,912 1.2 %
Less: Straight-line rent and fair value lease revenue 19,187 18,933 254 1.3 % 7 104 (97) (93.3) %
Add: Lease transaction costs that qualify as rent inducements 4 3,402 4,493 (1,091) (24.3) % — (41) 41 100.0 %
Subtotal 698,259 682,872 15,387 2.3 % 26,215 25,767 448 1.7 %
Less: Operating expenses and real estate taxes 270,149 253,044 17,105 6.8 % 13,944 15,053 (1,109) (7.4) %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 428,688 $ 430,459 (0.4) % $ 12,271 $ 10,714 14.5 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Jun-23 30-Jun-22 Change Change 30-Jun-23 30-Jun-22 Change Change
Rental Revenue 2 $ 740,102 $ 725,013 $ 61,871 $ 56,360
Less: Termination income (164) 1,789 3,113 (1)
Rental revenue (excluding termination income) 2 740,266 723,224 2.4 % 58,758 56,361 4.3 %
Less: Operating expenses and real estate taxes 284,093 268,097 15,996 6.0 % 23,298 20,898 2,400 11.5 %
NOI (excluding termination income) 2, 3 $ 456,173 $ 455,127 0.2 % $ 35,460 $ 35,463 — %
Rental revenue (excluding termination income) 2 $ 740,266 $ 723,224 2.4 % $ 58,758 $ 56,361 4.3 %
Less: Straight-line rent and fair value lease revenue 19,194 19,037 157 0.8 % 3,292 9,517 (6,225) (65.4) %
Add: Lease transaction costs that qualify as rent inducements 4 3,402 4,452 (1,050) (23.6) % 108 87 21 24.1 %
Subtotal 724,474 708,639 15,835 2.2 % 55,574 46,931 8,643 18.4 %
Less: Operating expenses and real estate taxes 284,093 268,097 15,996 6.0 % 23,298 20,898 2,400 11.5 %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % 142 145 (3) (2.1) %
NOI - cash (excluding termination income) 2, 3 $ 440,959 $ 441,173 — % $ 32,418 $ 26,178 23.8 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 2, 6
Three Months Ended % Three Months Ended %
30-Jun-23 30-Jun-22 Change Change 30-Jun-23 30-Jun-22 Change Change
Rental Revenue 2 $ 80,105 $ 77,142 $ 721,868 $ 704,231
Less: Termination income (276) 641 3,225 1,147
Rental revenue (excluding termination income) 2 80,381 76,501 5.1 % 718,643 703,084 2.2 %
Less: Operating expenses and real estate taxes 32,147 29,280 2,867 9.8 % 275,244 259,715 15,529 6.0 %
NOI (excluding termination income) 2, 3 $ 48,234 $ 47,221 2.1 % $ 443,399 $ 443,369 — %
Rental revenue (excluding termination income) 2 $ 80,381 $ 76,501 5.1 % $ 718,643 $ 703,084 2.2 %
Less: Straight-line rent and fair value lease revenue 4,781 225 4,556 2,024.9 % 17,705 28,329 (10,624) (37.5) %
Add: Lease transaction costs that qualify as rent inducements 4 279 — 279 100.0 % 3,231 4,539 (1,308) (28.8) %
Subtotal 75,879 76,276 (397) (0.5) % 704,169 679,294 24,875 3.7 %
Less: Operating expenses and real estate taxes 32,147 29,280 2,867 9.8 % 275,244 259,715 15,529 6.0 %
Add: Straight-line ground rent expense 5 — — — — % 720 776 (56) (7.2) %
NOI - cash (excluding termination income) 2, 3 $ 43,732 $ 46,996 (6.9) % $ 429,645 $ 420,355 2.2 %

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 54.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. 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 $91 and $115 for the three months ended June 30, 2023 and 2022, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

6BXP’s Share equals (A) + (B) - (C).

Q2 2023
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Jun-23 31-Mar-23
Maintenance capital expenditures $ 29,015 $ 21,455
Planned capital expenditures associated with acquisition properties 33 38
Repositioning capital expenditures 7,252 3,455
Hotel improvements, equipment upgrades and replacements 306 53
Subtotal 36,606 25,001
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 338 269
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,498 1,718
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 5,221 3,216
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 925 301
BXP’s Share of Capital Expenditures 1 $ 32,296 $ 23,471

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Jun-23 31-Mar-23
Square feet 891,347 775,445
Tenant improvements and lease commissions PSF $ 60.70 $ 72.81

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2Includes 100% of unconsolidated joint ventures.

Q2 2023
Acquisitions and dispositions

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

(dollars in thousands)

ACQUISITIONS

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

DISPOSITIONS

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

___________________

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

Q2 2023
Construction in progress

20as of June 30, 2023

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 6/30/2023 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
140 Kendrick - Building A (Redevelopment) 6 Q3 2023 Q3 2023 Needham, MA 104,000 $ 21,392 $ 26,600 $ — $ — $ 5,208 100 % — % N/A
360 Park Avenue South (42% ownership) 7 Q1 2024 Q4 2025 New York, NY 450,000 204,056 248,000 92,774 91,371 42,541 2 % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 35,535 61,000 — — 25,465 — % — % N/A
Total Office Properties under Construction 644,000 260,983 335,600 92,774 91,371 73,214 18 % — % —
Lab/Life Sciences
751 Gateway (49% ownership) Q4 2023 Q4 2023 South San Francisco, CA 231,000 103,738 127,600 — — 23,862 100 % — % N/A
103 CityPoint Q1 2024 Q3 2024 Waltham, MA 113,000 75,251 115,100 — — 39,849 — % — % N/A
180 CityPoint Q1 2024 Q4 2024 Waltham, MA 329,000 191,337 274,700 — — 83,363 43 % — % N/A
300 Binney Street (Redevelopment) Q1 2025 Q1 2025 Cambridge, MA 236,000 22,359 210,200 — — 187,841 100 % — % N/A
105 Carnegie Center (Redevelopment) Q4 2024 Q2 2025 Princeton, NJ 73,000 1,868 40,600 — — 38,732 — % — % N/A
651 Gateway (50% ownership) Q1 2024 Q4 2025 South San Francisco, CA 327,000 76,106 146,500 — — 70,394 14 % — % N/A
290 Binney Street Q2 2026 Q2 2026 Cambridge, MA 566,000 152,817 1,185,200 — — 1,032,383 100 % — % N/A
Total Lab/Life Sciences Properties under Construction 1,875,000 623,476 2,099,900 — — 1,476,424 65 % — % N/A
Residential
Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 23,324 47,700 28,000 7,913 4,289 — % — % N/A
Total Residential Property under Construction 417,000 23,324 47,700 28,000 7,913 4,289 — % — % N/A
Retail
760 Boylston Street (Redevelopment) Q2 2024 Q2 2024 Boston, MA 118,000 9,643 43,800 — — 34,157 100 % — % N/A
Reston Next Retail Q2 2025 Q4 2025 Reston, VA 33,000 20,610 26,600 — — 5,990 — % — % N/A
Total Retail Properties under Construction 151,000 30,253 70,400 — — 40,147 78 % — N/A
Total Properties Under Construction 3,087,000 $ 938,036 $ 2,553,600 $ 120,774 $ 99,284 $ 1,594,074 54 % 8 — % $ —

PROJECTS FULLY PLACED IN-SERVICE DURING 2023

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 6/30/2023 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5 (BXP’s share)
Initial Occupancy Stabilization Date Investment to Date 2 Total Financing Percentage Leased 3
Location Square Feet
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 475,849 $ 344,256 $ 375,900 $ — $ — $ 31,644 91 % $ 3,007
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 63,000 174,000 182,300 — — 8,300 N/A N/A 9
Total Projects Fully Placed In-Service 538,849 $ 518,256 $ 558,200 $ — $ — $ 39,944 91 % 10 $ 3,007
Q2 2023
--- ---
Construction in progress (continued)

________________

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

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

3Represents percentage leased as of July 28, 2023, including leases with future commencement dates.

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

5Amounts represent Net Operating Income for the three months ended June 30, 2023. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 54.

6On July 20, 2023, the project was fully placed into service.

7Investment to Date includes all related costs incurred prior to the contribution of the property by the Company to the joint venture on December 15, 2021 totaling approximately $107 million and the Company’s proportionate share of the loan. The Company’s joint venture partners will fund required capital until their aggregate investment is approximately 58% of all capital contributions; thereafter, the joint venture partners will fund required capital according to their percentage interests.

8Total percentage leased excludes Residential.

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

10Total percentage leased excludes View Boston Observatory at The Prudential Center.

Q2 2023
Land parcels and purchase options

as of June 30, 2023

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 1 2,229,000
San Jose, CA 2 2,199,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% ownership) 3 1,088,000
San Francisco, CA 850,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% ownership) 451,000
Springfield, VA 422,000
Waltham, MA 365,000
Herndon, VA (50% ownership) 350,000
El Segundo, CA (50% ownership) 275,000
Lexington, MA 2 259,000
Rockville, MD 2 252,000
Dulles, VA 150,000
Total 13,692,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 887,000
Boston, MA 1,300,000
Waltham, MA 4 1,200,000
Total 3,387,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

2Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 20-23.

3The number of square feet increased by 390,000 square feet from the previous quarter because, in the second quarter of 2023, a joint venture in which BXP has a 55% interest elected to pause further construction on Platform 16 in San Jose, CA. Platform 16 was planned to be constructed in phases to best accommodate market demand. The Company expects this joint venture will complete the underground parking garage and building foundation elements over the next several months to ensure that the project is positioned to mobilize quickly as demand improves. Our share of the estimated cost to complete the garage and foundation is approximately $45.8 million.

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

Q2 2023
Leasing activity

for the three months ended June 30, 2023

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,569,935
Less:
Property dispositions/properties taken out of service —
Add:
Properties placed (and partially placed) in-service 1 181,597
Leases expiring or terminated during the period 1,093,663
Total space available for lease 6,845,195
1st generation leases 151,087
2nd generation leases with new clients 556,310
2nd generation lease renewals 335,037
Total space leased 1,042,434
Vacant space available for lease at the end of the period 5,802,761
Net (increase)/decrease in available space (232,826)
Second generation leasing information: 2
Leases commencing during the period (SF) 891,347
Weighted average lease term (months) 88
Weighted average free rent period (days) 186
Total transaction costs per square foot 3 60.70
Increase (decrease) in gross rents 4 6.31
Increase (decrease) in net rents 5 10.02

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 7 gross 4, 6 net 5, 6
Boston 30,669 260,659 291,328 12.19 % 19.82 % 319,999
Los Angeles — 1,088 1,088 — % — % 615
New York 120,418 203,049 323,467 31.20 % 63.76 % 279,731
San Francisco — 75,625 75,625 8.84 % 13.25 % 101,201
Seattle — — — — % — % —
Washington, DC — 350,926 350,926 (5.63) % (8.45) % 235,990
Total / Weighted Average 151,087 891,347 1,042,434 6.31 % 10.02 % 937,536

_____________

1Total square feet of properties placed in service in Q2 2023 consists of 181,597 at 2100 Pennsylvania Avenue.

2Second generation leases are defined as leases for space that has previously been leased. Of the 891,347 square feet of second generation leases that commenced in Q2 2023, leases for 776,928 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 554,458 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 554,458 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

6Represents 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 116,230.

Q2 2023
Portfolio overview

for the three months ended June 30, 2023

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,567,137 1,047,962 550,114 330,000 16,495,213
Los Angeles 2,186,718 126,377 — — 2,313,095
New York 12,107,206 486,390 — — 12,593,596
San Francisco 6,998,093 353,708 318,171 — 7,669,972
Seattle 1,507,450 26,472 — — 1,533,922
Washington, DC 9,245,077 692,186 493,241 — 10,430,504
Total 46,611,681 2,733,095 1,361,526 330,000 51,036,302
% of Total 91.33 % 5.36 % 2.67 % 0.64 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 721,161 $ 55,968 $ 11,688 $ 13,869 $ 802,686
Less:
Partners’ share from consolidated joint ventures 4 70,663 9,442 — — 80,105
Add:
BXP’s share from unconsolidated joint ventures 5 62,236 3,216 2,682 — 68,134
BXP’s Share of Rental revenue 1 $ 712,734 $ 49,742 $ 14,370 $ 13,869 $ 790,715
% of Total 90.14 % 6.29 % 1.82 % 1.75 % 100.00 %

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

CBD Suburban Total
Boston 29.35 % 6.97 % 36.32 %
Los Angeles 2.58 % — % 2.58 %
New York 23.70 % 1.98 % 25.68 %
San Francisco 16.45 % 2.29 % 18.74 %
Seattle 3.21 % — % 3.21 %
Washington, DC 3.49 % 9.98 % 13.47 %
Total 78.78 % 21.22 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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

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

4See page 61 for additional information.

5See page 63 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.

Q2 2023
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
30-Jun-23 31-Mar-23 30-Jun-23 31-Mar-23
Rental Revenue 2 $ 12,253 $ 11,726 $ 13,969 $ 8,101
Less: Operating expenses and real estate taxes 5,783 5,463 8,161 6,671
Net Operating Income (NOI) 2 6,470 6,263 5,808 1,430
Add: BXP’s share of NOI from unconsolidated joint ventures 1,722 1,751 N/A N/A
BXP’s Share of NOI 2 $ 8,192 $ 8,014 $ 5,808 $ 1,430
Rental Revenue 2 $ 12,253 $ 11,726 $ 13,969 $ 8,101
Less: Straight line rent and fair value lease revenue 9 15 (2) (2)
Add: Lease transaction costs that qualify as rent inducements — — — —
Subtotal 12,244 11,711 13,971 8,103
Less: Operating expenses and real estate taxes 5,783 5,463 8,161 6,671
NOI - cash basis 2 6,461 6,248 5,810 1,432
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,722 1,751 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 8,183 $ 7,999 $ 5,810 $ 1,432

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-23 30-Jun-22
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 4,221 $ 3,957 6.67 %
Average Rental Rate Per Occupied Square Foot $ 5.78 $ 5.45 6.06 %
Average Physical Occupancy 94.32 % 95.61 % (1.35) %
Average Economic Occupancy 94.03 % 94.81 % (0.82) %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 3,065 $ 2,774 10.49 %
Average Rental Rate Per Occupied Square Foot $ 5.62 $ 5.11 9.98 %
Average Physical Occupancy 95.83 % 95.24 % 0.62 %
Average Economic Occupancy 95.81 % 94.28 % 1.62 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,440 $ 4,097 8.37 %
Average Rental Rate Per Occupied Square Foot $ 4.91 $ 4.57 7.44 %
Average Physical Occupancy 96.51 % 97.67 % (1.19) %
Average Economic Occupancy 97.48 % 97.10 % 0.39 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 77.20 % 73.50 % 5.03 %
Average Daily Rate $ 371.58 $ 349.99 6.17 %
Revenue Per Available Room $ 286.79 $ 257.32 11.45 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 3 402
Average Monthly Rental Rate $ 3,447 $ 3,391 1.65 %
Average Rental Rate Per Occupied Square Foot $ 4.39 $ 4.15 5.78 %
Average Physical Occupancy 92.37 % 83.83 % 10.19 %
Average Economic Occupancy 89.93 % 81.73 % 10.03 %
Q2 2023
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-23 30-Jun-22
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,663 $ 2,683 (0.75) %
Average Rental Rate Per Occupied Square Foot $ 2.77 $ 2.77 — %
Average Physical Occupancy 94.62 % 95.14 % (0.55) %
Average Economic Occupancy 93.59 % 94.78 % (1.26) %
Total In-Service Residential Units 1,716

_____________

1Includes retail space.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

3Excludes retail space.

Q2 2023
In-service property listing as of June 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,764,777 93.5 % 96.4 % $ 80.90
800 Boylston Street - The Prudential Center 4 CBD Boston MA 1 1,274,915 95.0 % 95.5 % 71.13
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,821 92.9 % 95.6 % 74.80
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,446 93.5 % 100.0 % 75.26
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 789,375 99.8 % 99.8 % 88.01
100 Causeway Street (50% ownership) 5 CBD Boston MA 1 633,819 94.6 % 94.6 % 74.27
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 98.7 % 98.7 % 59.62
Prudential Center (retail shops) 6 CBD Boston MA — 484,626 96.1 % 96.3 % 102.11
The Hub on Causeway - Podium (50% ownership) 5 CBD Boston MA 1 382,988 93.8 % 93.8 % 64.46
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 100.0 % 81.62
Star Market at the Prudential Center 6 CBD Boston MA 1 57,236 100.0 % 100.0 % 61.64
Subtotal 10 8,356,799 95.1 % 96.9 % $ 77.29
145 Broadway East Cambridge MA 1 490,086 99.6 % 99.6 % $ 90.02
325 Main Street 7 East Cambridge MA 1 414,565 91.4 % 91.4 % 110.87
125 Broadway 7 East Cambridge MA 1 271,000 100.0 % 100.0 % 137.87
355 Main Street East Cambridge MA 1 259,640 99.3 % 99.3 % 81.72
90 Broadway East Cambridge MA 1 223,771 98.1 % 98.1 % 77.60
255 Main Street East Cambridge MA 1 215,394 87.9 % 87.9 % 104.33
150 Broadway East Cambridge MA 1 177,226 100.0 % 100.0 % 86.86
105 Broadway East Cambridge MA 1 152,664 100.0 % 100.0 % 73.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 100.0 % 49.70
University Place Mid-Cambridge MA 1 195,282 100.0 % 100.0 % 56.02
Subtotal 10 2,466,990 97.2 % 97.2 % $ 92.66
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 997,574 55.7 % 56.5 % $ 48.83
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 51.7 % 51.7 % 47.09
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 100.0 % 58.00
140 Kendrick Street Route 128 Mass Turnpike MA 2 314,434 79.2 % 79.2 % 52.15
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 90.8 % 90.8 % 44.08
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 90.5 % 90.5 % 46.82
200 West Street Route 128 Mass Turnpike MA 1 273,682 83.8 % 97.5 % 77.56
880 Winter Street 7 Route 128 Mass Turnpike MA 1 243,618 97.2 % 97.2 % 94.94
10 CityPoint Route 128 Mass Turnpike MA 1 236,570 90.9 % 95.6 % 56.28
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.1 % 98.1 % 56.52
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 100.0 % 100.0 % 53.73
890 Winter Street Route 128 Mass Turnpike MA 1 179,312 56.2 % 58.6 % 47.19
153 & 211 Second Avenue Route 128 Mass Turnpike MA 2 136,882 100.0 % 100.0 % 83.16
1265 Main Street (50% ownership) 5 Route 128 Mass Turnpike MA 1 120,681 100.0 % 100.0 % 52.93
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 100.0 % 53.10
The Point 6 Route 128 Mass Turnpike MA 1 16,300 100.0 % 100.0 % 60.53
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 100.0 % 73.06
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 100.0 % 28.87
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 100.0 % 66.02
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 100.0 % 47.83
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 100.0 % 71.66
Subtotal 26 4,762,907 79.6 % 80.9 % $ 57.10
Boston Office Total: 46 15,586,696 90.7 % 92.1 % $ 74.47
Residential
Hub50House (440 units) (50% ownership) 5 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,096
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,257 Q2 2023
--- ---
In-service property listing (continued) as of June 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 50 16,495,213
LOS ANGELES
Office
Colorado Center (50% ownership) 5 West Los Angeles CA 6 1,131,511 87.7 % 87.7 % $ 74.37
Santa Monica Business Park (55% ownership) 5 West Los Angeles CA 14 1,107,180 84.1 % 84.1 % 71.09
Santa Monica Business Park Retail (55% ownership) 5, 6 West Los Angeles CA 7 74,404 88.4 % 92.0 % 72.47
Subtotal 27 2,313,095 86.0 % 86.2 % $ 72.78
Los Angeles Total: 27 2,313,095 86.0 % 86.2 % $ 72.78
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,965,003 91.0 % 94.2 % $ 162.33
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,670,790 95.8 % 95.8 % 94.43
399 Park Avenue Park Avenue NY 1 1,577,544 99.2 % 100.0 % 100.68
599 Lexington Avenue Park Avenue NY 1 1,106,373 88.3 % 93.0 % 87.92
Times Square Tower (55% ownership) Times Square NY 1 1,236,995 87.5 % 97.1 % 80.57
250 West 55th Street Times Square / West Side NY 1 966,976 100.0 % 100.0 % 95.17
200 Fifth Avenue (26.69% ownership) 5, 7 Flatiron District NY 1 854,737 92.3 % 92.3 % 98.72
Dock 72 (50% ownership) 5 Brooklyn NY 1 668,625 42.4 % 42.4 % 50.46
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 97.1 % 97.1 % 133.82
Subtotal 9 10,402,132 90.3 % 92.7 % $ 106.69
510 Carnegie Center Princeton NJ 1 234,160 33.5 % 33.5 % $ 41.83
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 100.0 % 35.46
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 79.2 % 37.75
212 Carnegie Center Princeton NJ 1 148,942 40.6 % 49.6 % 39.15
214 Carnegie Center Princeton NJ 1 146,799 67.4 % 69.5 % 36.96
506 Carnegie Center Princeton NJ 1 139,050 82.1 % 82.1 % 39.58
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 100.0 % 41.87
202 Carnegie Center Princeton NJ 1 134,068 84.9 % 84.9 % 40.84
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 100.0 % 41.26
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 100.0 % 35.47
101 Carnegie Center Princeton NJ 1 121,619 100.0 % 100.0 % 38.93
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 96.2 % 39.96
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 100.0 % 42.41
104 Carnegie Center Princeton NJ 1 102,930 61.5 % 65.3 % 39.76
103 Carnegie Center Princeton NJ 1 96,331 72.1 % 74.7 % 36.89
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 100.0 % 36.06
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 100.0 % 37.32
201 Carnegie Center Princeton NJ — 6,500 100.0 % 100.0 % 36.59
Subtotal 17 2,191,464 79.9 % 80.9 % $ 38.97
New York Total: 26 12,593,596 88.5 % 90.6 % $ 96.07
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % 100.0 % $ 111.33
Embarcadero Center Four CBD San Francisco CA 1 941,641 95.3 % 95.3 % 93.61
Embarcadero Center One CBD San Francisco CA 1 837,261 66.5 % 73.3 % 91.12
Embarcadero Center Two CBD San Francisco CA 1 801,766 87.1 % 87.1 % 87.23
Embarcadero Center Three CBD San Francisco CA 1 786,031 79.5 % 79.5 % 91.82 Q2 2023
--- ---
In-service property listing (continued) as of June 30, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 98.7 % 98.7 % 74.26
535 Mission Street CBD San Francisco CA 1 307,235 93.4 % 97.7 % 86.56
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 100.0 % 105.99
Subtotal 9 5,645,489 89.1 % 90.3 % $ 94.92
Gateway Commons (50% ownership) 5 South San Francisco CA 5 788,178 85.6 % 85.6 % $ 65.68
Mountain View Research Park Mountain View CA 15 542,264 79.2 % 79.2 % 70.88
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 100.0 % 92.32
453 Ravendale Drive Mountain View CA 1 29,620 100.0 % 100.0 % 52.15
North First Business Park 8 San Jose CA 5 190,636 87.6 % 87.6 % 24.27
Subtotal 27 1,693,487 85.2 % 85.2 % $ 64.82
San Francisco Office Total: 36 7,338,976 88.2 % 89.1 % $ 88.18
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 37 7,669,972
SEATTLE
Office
Safeco Plaza (33.67% ownership) 5 CBD Seattle WA 1 778,934 82.8 % 88.0 % $ 44.63
Madison Centre 7 CBD Seattle WA 1 754,988 93.1 % 93.1 % 62.63
Subtotal 2 1,533,922 87.9 % 90.5 % $ 54.00
Seattle Total: 2 1,533,922 87.9 % 90.5 % $ 54.00
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 5 East End Washington DC 1 656,546 56.0 % 58.0 % $ 68.52
901 New York Avenue (25% ownership) 5 East End Washington DC 1 544,256 83.1 % 83.9 % 66.52
2100 Pennsylvania Avenue 7 CBD Washington DC 1 475,849 61.8 % 90.5 % 62.14
2200 Pennsylvania Avenue CBD Washington DC 1 459,811 94.9 % 94.9 % 85.47
Market Square North (50% ownership) 5 East End Washington DC 1 418,539 74.6 % 74.6 % 71.72
1330 Connecticut Avenue CBD Washington DC 1 253,579 87.4 % 87.4 % 70.63
500 North Capitol Street, N.W. (30% ownership) 5 Capitol Hill Washington DC 1 230,900 98.5 % 98.5 % 82.58
Sumner Square CBD Washington DC 1 226,102 100.0 % 100.0 % 51.53
Capital Gallery Southwest Washington DC 1 176,809 92.7 % 92.7 % 54.99
Subtotal 9 3,442,391 78.5 % 83.0 % $ 69.58
Reston Next 7 Reston VA 2 1,063,236 69.0 % 90.6 % $ 58.87
South of Market Reston VA 3 623,250 99.6 % 99.6 % 55.40
Fountain Square Reston VA 2 524,510 85.9 % 87.1 % 53.33
One Freedom Square Reston VA 1 427,956 85.1 % 85.1 % 56.00
Two Freedom Square Reston VA 1 423,222 100.0 % 100.0 % 52.11
One and Two Discovery Square Reston VA 2 366,989 89.7 % 89.7 % 52.13
One Reston Overlook Reston VA 1 319,519 89.7 % 89.7 % 47.08
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 100.0 % 71.42
Reston Corporate Center Reston VA 2 261,046 100.0 % 100.0 % 49.28
Democracy Tower Reston VA 1 259,441 99.3 % 99.3 % 65.18
Fountain Square Retail 6 Reston VA 1 198,172 80.3 % 87.0 % 51.66
Two Reston Overlook Reston VA 1 134,615 100.0 % 100.0 % 52.31
Avant Retail 6, 7 Reston VA 1 26,179 100.0 % 100.0 % 59.04
Subtotal 19 4,903,944 88.2 % 93.4 % $ 55.73 Q2 2023
--- ---
In-service property listing (continued) as of June 30, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
WASHINGTON, DC (continued)
7750 Wisconsin Avenue (50% ownership) 5 Bethesda/Chevy Chase MD 1 735,573 100.0 % 100.0 % $ 38.49
Wisconsin Place Office Montgomery County MD 1 299,468 86.3 % 87.0 % 49.26
Shady Grove Innovation District North Rockville MD 2 133,651 81.6 % 81.6 % 16.91
Kingstowne Two Springfield VA 1 156,005 87.2 % 90.6 % 39.81
Kingstowne One Springfield VA 1 153,401 44.1 % 44.1 % 39.19
Kingstowne Retail 6 Springfield VA 1 88,288 96.8 % 100.0 % 30.58
Subtotal 7 1,566,386 88.9 % 89.5 % $ 38.48
Washington, DC Office Total: 35 9,912,721 84.9 % 89.2 % $ 57.29
Residential
Signature at Reston (508 units) Reston VA 1 517,783
Washington, DC Residential Total: 1 517,783
Washington, DC Total: 36 10,430,504
Total In-Service Properties: 178 51,036,302 88.3 % 9 90.4 % 9 $ 78.01 9
BXP’s Share of Total In-Service Properties: 3 88.7 % 9 90.9 % 9

_____________

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

2Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. For additional detail, see pages 36-52.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

4On June 1, 2023, the Company completed and fully placed in-service its View Boston Observatory, a redevelopment of the top three floors of the property consisting of approximately 63,000 net rentable square feet of retail and observation space.

5This is an unconsolidated joint venture property.

6This is a retail property.

7Not included in the Same Property analysis.

8Property held for redevelopment.

9Excludes hotel and residential properties. For additional detail, see pages 18-19.

Q2 2023
Top 20 clients listing and portfolio client diversification

as of June 30, 2023

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 Salesforce 3.44 % 8.6
2 Google 2.75 % 14.0
3 Biogen 2.61 % 3.9
4 Akamai Technologies 2.11 % 11.3
5 Fannie Mae 1.51 % 14.2
6 Kirkland & Ellis 1.46 % 14.3
7 Ropes & Gray 1.44 % 6.8
8 Microsoft 1.29 % 9.3
9 WeWork 1.28 % 8.8
10 Millennium Management 1.24 % 7.5
11 Arnold & Porter Kaye Scholer 1.16 % 8.6
12 Weil Gotshal & Manges 1.11 % 10.9
13 Shearman & Sterling 1.06 % 17.0
14 Wellington Management 1.02 % 12.2
15 Bank of America 0.91 % 11.7
16 Morrison & Foerster 0.87 % 7.2
17 Snap 0.86 % 2.8
18 Leidos 0.85 % 9.9
19 Aramis (Estee Lauder) 0.83 % 16.8
20 O'Melveny & Myers 0.83 % 2.0
BXP’s Share of Annualized Rental Obligations 28.64 %
BXP’s Share of Square Feet 1 22.69 %
Weighted Average Remaining Lease Term (years) 9.9

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 290 Binney Street 566,000
Genentech 751 Gateway 229,000
The Broad Institute 300 Binney Street 225,000
Volkswagen Group of America Reston Next 200,000

CLIENT DIVERSIFICATION 2

chart-6d419e0086e84a26a06.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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.

Q2 2023
Occupancy by location

as of June 30, 2023

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

CBD Suburban Total
Location 30-Jun-23 31-Mar-23 30-Jun-23 31-Mar-23 30-Jun-23 31-Mar-23
Boston 95.6 % 95.0 % 79.6 % 80.7 % 90.7 % 90.7 %
Los Angeles 86.0 % 86.0 % — % — % 86.0 % 86.0 %
New York 90.3 % 88.8 % 79.9 % 79.7 % 88.5 % 87.2 %
San Francisco 89.1 % 89.2 % 85.2 % 85.8 % 88.2 % 88.4 %
Seattle 87.9 % 87.9 % — % — % 87.9 % 87.9 %
Washington, DC 78.5 % 87.0 % 88.3 % 88.6 % 84.9 % 88.1 %
Total Portfolio 90.2 % 90.5 % 84.0 % 84.5 % 88.3 % 88.6 %

chart-81801b70f5de44e4805.jpg

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

CBD Suburban Total
Location 30-Jun-23 30-Jun-22 30-Jun-23 30-Jun-22 30-Jun-23 30-Jun-22
Boston 95.6 % 95.8 % 78.6 % 85.4 % 90.3 % 92.6 %
Los Angeles 86.0 % 93.4 % — % — % 86.0 % 93.4 %
New York 90.2 % 90.0 % 79.9 % 79.4 % 88.2 % 88.0 %
San Francisco 89.1 % 89.9 % 85.2 % 76.7 % 88.2 % 86.9 %
Seattle 82.8 % 85.6 % — % — % 82.8 % 85.6 %
Washington, DC 81.2 % 83.1 % 92.1 % 93.0 % 88.2 % 89.5 %
Total Portfolio 90.4 % 91.3 % 84.9 % 86.4 % 88.7 % 89.8 %

chart-2c34ed92aa4f4652888.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 54.

Q2 2023
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit —
Unsecured Term Loan 1,200,000
Unsecured Senior Notes, at face value 11,050,000
Outstanding Principal 15,550,000
Discount on Unsecured Senior Notes (14,831)
Deferred Financing Costs, Net (78,964)
Consolidated Debt $ 15,456,205

MORTGAGE NOTES PAYABLE

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

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% $ 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
5 Year Unsecured Senior Notes (“green bonds”) December 1, 2027 6.92% 6.75% 750,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
10.7 Year Unsecured Senior Notes (“green bonds”) January 15, 2034 6.62% 6.50% 750,000
$ 11,050,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,853 156,853 $ 9,033,164
Common Operating Partnership Units 18,658 18,658 1,074,514
Total Equity 175,511 $ 10,107,678
Consolidated Debt (A) $ 15,456,205
Add: BXP’s share of unconsolidated joint venture debt 3 1,609,671
Less: Partners’ share of consolidated debt 4 1,359,380
BXP’s Share of Debt 5 (B) $ 15,706,496
Consolidated Market Capitalization (C) $ 25,563,883
BXP’s Share of Market Capitalization 5 (D) $ 25,814,174
Consolidated Debt/Consolidated Market Capitalization (A÷C) 60.46 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 60.84 %

_____________

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

2Values are based on the June 30, 2023 closing price of $57.59 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 54.

Q2 2023
Debt analysis 1

as of June 30, 2023

(dollars in thousands)

chart-1468e740f637411d9d6.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at June 30, 2023 Letters of Credit Remaining Capacity at June 30, 2023
Unsecured Line of Credit $ 1,500,000 $ — $ 6,727 $ 1,493,273

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

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

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 4 Maturity (years)
Unsecured Debt 3 78.81 % 3.98 % 4.10 % 5.0
Secured Debt 21.19 % 3.24 % 3.42 % 5.3
Consolidated Debt 100.00 % 3.82 % 3.95 % 5.0

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 4 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 3 100.00 % 3.82 % 3.95 % 5.0
Consolidated Debt 100.00 % 3.82 % 3.95 % 5.0

_____________

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

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

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

4The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.

Q2 2023
Senior unsecured debt covenant compliance ratios

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

This section presents such ratios as of June 30, 2023 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 48.6 % 45.3 %
Secured Debt/Total Assets Less than 50% 14.5 % 13.5 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.26 3.26
Unencumbered Assets/ Unsecured Debt Greater than 150% 225.5 % 245.5 %

_____________

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

Q2 2023
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
30-Jun-23 31-Mar-23
Net income attributable to Boston Properties, Inc. $ 104,299 $ 77,890
Add:
Noncontrolling interest - common units of the Operating Partnership 12,117 9,078
Noncontrolling interest in property partnerships 19,768 18,660
Net income 136,184 105,628
Add:
Interest expense 142,473 134,207
Depreciation and amortization expense 202,577 208,734
Less:
Loss from unconsolidated joint ventures (6,668) (7,569)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 43,491 41,777
EBITDAre 1 531,393 497,915
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 49,497 48,132
BXP’s Share of EBITDAre 1 (A) 481,896 449,783
Add:
Stock-based compensation expense 14,935 25,935
BXP’s Share of straight-line ground rent expense adjustment 1 811 543
BXP’s Share of lease transaction costs that qualify as rent inducements 1 3,231 5,519
Less:
BXP’s Share of straight-line rent 1 24,927 23,863
BXP’s Share of fair value lease revenue 1 6,776 4,579
Amortization and accretion related to sales type lease 229 226
BXP’s Share of EBITDAre – cash 1 $ 468,941 $ 453,112
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,927,584 $ 1,799,132

Reconciliation of BXP’s Share of Net Debt 1

30-Jun-23 31-Mar-23
Consolidated debt $ 15,456,205 $ 14,709,436
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 1,581,575 918,952
Cash held in escrow for 1031 exchange — —
Net debt 1 13,874,630 13,790,484
Add:
BXP’s share of unconsolidated joint venture debt 2 1,609,671 1,604,852
Partners’ share of cash and cash equivalents from consolidated joint ventures 109,668 99,873
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 122,784 112,426
Partners’ share of consolidated joint venture debt 3 1,359,380 1,358,881
BXP’s share of related party note receivable 30,500 20,000
BXP’s Share of Net Debt 1 (B) $ 14,081,305 $ 14,003,902
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.31 7.78

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended June 30, 2023, see pages 33 and 62.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended June 30, 2023, see pages 31 and 60.

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

Q2 2023
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Jun-23 31-Mar-23
BXP’s Share of interest expense 1 $ 155,004 $ 146,147
Less:
BXP’s Share of hedge amortization, net of costs 1 1,750 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of amortization of financing costs 1 5,274 5,216
Adjusted interest expense excluding capitalized interest (A) 147,481 138,682
Add:
BXP’s Share of capitalized interest 1 12,387 12,189
Adjusted interest expense including capitalized interest (B) $ 159,868 $ 150,871
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 468,941 $ 453,112
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.18 3.27
Interest Coverage Ratio (including capitalized interest) (C÷B) 2.93 3.00

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Jun-23 31-Mar-23
BXP’s Share of interest expense 1 $ 155,004 $ 146,147
Less:
BXP’s Share of hedge amortization, net of costs 1 1,750 1,750
BXP’s share of fair value interest adjustment 1 499 499
BXP’s Share of amortization of financing costs 1 5,274 5,216
Add:
BXP’s Share of capitalized interest 1 12,387 12,189
BXP’s Share of maintenance capital expenditures 1 24,132 18,508
Hotel improvements, equipment upgrades and replacements 306 53
Total Fixed Charges (A) $ 184,306 $ 169,432
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 468,941 $ 453,112
Fixed Charge Coverage Ratio (B÷A) 2.54 2.67

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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

Q2 2023
Consolidated joint ventures

d

as of June 30, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,224,594 $ 2,259,055 $ 5,483,649
Cash and cash equivalents 112,451 143,750 256,201
Other assets 278,350 377,504 655,854
Total assets $ 3,615,395 $ 2,780,309 $ 6,395,704
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,286,234 $ 988,507 $ 3,274,741
Other liabilities 89,721 93,596 183,317
Total liabilities 2,375,955 1,082,103 3,458,058
Equity:
Boston Properties, Inc. 745,293 634,858 1,380,151
Noncontrolling interests 494,147 1,063,348 1,557,495 2
Total equity 1,239,440 1,698,206 2,937,646
Total liabilities and equity $ 3,615,395 $ 2,780,309 $ 6,395,704
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 44,980 $ 64,688 $ 109,668
Partners’ share of consolidated debt 3 $ 914,552 4 $ 444,828 $ 1,359,380

_____________

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.

Q2 2023
Consolidated joint ventures (continued)

for the three months ended June 30, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,742 $ 100,008 $ 175,750
Straight-line rent 5,723 5,227 10,950
Fair value lease revenue 327 21 348
Termination income — (613) (613)
Total lease revenue 81,792 104,643 186,435
Parking and other 9 656 665
Total rental revenue 2 81,801 105,299 187,100
Expenses
Operating 32,825 38,904 71,729
Net Operating Income (NOI) 48,976 66,395 115,371
Other income (expense)
Development and management services revenue 20 599 619
Interest and other income 1,459 1,912 3,371
Interest expense (21,072) (7,658) (28,730)
Depreciation and amortization expense (17,310) (22,977) (40,287)
General and administrative expense (74) (42) (116)
Total other income (expense) (36,977) (28,166) (65,143)
Net income $ 11,999 $ 38,229 $ 50,228

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 $ 11,999 $ 38,229 $ 50,228
Add: Depreciation and amortization expense 17,310 22,977 40,287
Entity FFO $ 29,309 $ 61,206 $ 90,515
Noncontrolling interest in property partnerships (Partners’ NCI) 3 $ 3,778 $ 15,990 $ 19,768
Partners’ share of depreciation and amortization expense after BXP’s basis differential 3 7,274 10,584 17,858
Partners’ share FFO 3 $ 11,052 $ 26,574 $ 37,626
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 8,221 $ 22,239 $ 30,460
Depreciation and amortization expense - BXP’s basis difference 61 388 449
BXP’s share of depreciation and amortization expense 9,975 12,005 21,980
BXP’s share of FFO $ 18,257 $ 34,632 $ 52,889

_____________

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

2 See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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

Q2 2023
Unconsolidated joint ventures 1

as of June 30, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Mezzanine/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street3 50.00 % 59,550 168,729 September 5, 2023 6.76 % 6.97 %
Podium 50.00 % 44,542 87,136 September 6, 2023 7.51 % 7.68 %
Hub50House 50.00 % 44,214 91,889 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 12,750 — — — % — %
1265 Main Street 50.00 % 3,583 17,446 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 161,368 164,400 July 19, 2025 4.06 % 4.23 %
Colorado Center 50.00 % 235,846 274,632 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 27,013 — — — % — %
New York
Dock 72 50.00 % (13,511) 98,621 December 18, 2025 7.59 % 7.85 %
360 Park Avenue South 4 42.21 % 112,219 90,849 December 14, 2024 7.65 % 8.10 %
200 Fifth Avenue 26.69 % 116,335 149,694 November 24, 2028 4.34 % 5.60 %
3 Hudson Boulevard 5 25.00 % 115,878 20,000 August 13, 2023 8.68 % 8.68 %
San Francisco
Platform 16 55.00 % 184,642 — — — % — %
Gateway Commons 50.00 % 349,055 — — — % — %
751 Gateway 49.00 % 89,025 — — — % — %
Seattle
Safeco Plaza 6 33.67 % 70,331 83,812 September 1, 2026 4.82 % 4.96 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 50,789 125,613 April 26, 2024 6.51 % 6.66 %
1001 6th Street 50.00 % 43,443 — — — % — %
13100 & 13150 Worldgate Drive 50.00 % 17,182 — — — % — %
Market Square North 50.00 % (6,053) 62,230 November 10, 2025 7.56 % 7.74 %
Wisconsin Place Parking Facility 33.33 % 31,398 — — — % — %
500 North Capitol Street, N.W. 7 30.00 % (8,559) 31,069 June 5, 2026 6.83 % 7.16 %
901 New York Avenue 25.00 % (12,150) 52,400 January 5, 2025 3.61 % 3.69 %
Reston Next Residential 20.00 % 11,796 7,656 May 13, 2026 7.15 % 7.47 %
Metropolitan Square 6 20.00 % (37,654) 83,495 April 9, 2024 7.25 % 8.03 %
1,703,032
Investments with deficit balances reflected within Other Liabilities 77,927
Investments in Unconsolidated Joint Ventures $ 1,780,959
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,609,671

chart-b18633da01844699973.jpg

Q2 2023
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 51.45 % 6.82 % 7.10 % 1.2
Fixed Rate Debt 48.55 % 3.98 % 4.30 % 7.2
Total Debt 100.00 % 5.45 % 5.74 % 4.1

_____________

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

2The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees and the effects of hedging transactions (if any).

3On July 28, 2023 the joint venture extended the loan maturity to September 5, 2024. the interest rate was reduced from Term SOFR plus 1.60% to Term SOFR plus 1.48% per annum.

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 is reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.

6 Safeco Plaza and Metropolitan Square entered into interest rate cap agreements during Q3 2022 that capped SOFR at 2.50% and 4.50% per annum, respectively.

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

Q2 2023
Unconsolidated joint ventures (continued)

for the three months ended June 30, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,680 $ 34,242 $ 23,399 $ 11,635 $ 6,693 $ 29,163 $ 129,812
Straight-line rent 1,682 (132) 556 (51) 531 4,326 6,912
Fair value lease revenue — 116 1,538 21 1,134 — 2,809
Termination income — 21 — — — 15,507 15,528
Total lease revenue 26,362 34,247 25,493 11,605 8,358 48,996 155,061
Parking and other 1 4,044 88 203 484 1,977 6,797
Total rental revenue 3 26,363 38,291 25,581 11,808 8,842 50,973 161,858
Expenses
Operating 8,822 14,540 15,261 4,719 3,262 14,258 60,862
Net operating income/(loss) 17,541 23,751 10,320 7,089 5,580 36,715 100,996
Other income/(expense)
Development and management services revenue — — 561 — — 11 572
Interest and other income 448 540 286 8 117 942 2,341
Interest expense (11,486) (11,870) (13,024) — (3,546) (18,873) (58,799)
Unrealized gain on derivative instruments — — 14,457 — — — 14,457
Transaction costs (6) — — — (3) (18) (27)
Depreciation and amortization expense (8,416) (12,546) (8,459) (4,749) (5,168) (11,895) (51,233)
General and administrative expense (1) (23) (118) (5) (5) (9) (161)
Loss from early extinguishment of debt — — — — — (3) (3)
Total other income/(expense) (19,461) (23,899) (6,297) (4,746) (8,605) (29,845) (92,853)
Net income/(loss) $ (1,920) $ (148) $ 4,023 $ 2,343 $ (3,025) $ 6,870 $ 8,143
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (960) $ (286) $ (148) $ 1,168 $ (1,032) $ 1,897 4 $ 639
Basis differential
Straight-line rent $ — $ 91 5 $ 323 $ 7 5 $ — $ — $ 421
Fair value lease revenue — 301 5 117 (219) 5 — — 199
Fair value interest adjustment — — (499) — — — (499)
Amortization of financing costs — — 113 — — — 113
Unrealized gain on derivative instruments — — (3,859) — — — (3,859)
Depreciation and amortization expense (4) (1,086) 5 (2,019) (506) 5 — (67) (3,682)
Total basis differential 6 (4) (694) 5 (5,824) (718) 5 — (67) (7,307)
Income/(loss) from unconsolidated joint ventures (964) (980) (5,972) 450 (1,032) 1,830 4 (6,668)
Add:
BXP’s share of depreciation and amortization expense 4,212 7,719 4,968 2,880 1,739 4,238 4 25,756
BXP’s share of FFO $ 3,248 $ 6,739 $ (1,004) $ 3,330 $ 707 $ 6,068 $ 19,088

_____________

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 clients and service income from clients.

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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

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

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

Q2 2023
Lease expirations - All in-service properties1, 2, 3

as of June 30, 2023

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 1,225,668 71,867,655 65.11 2.80 % 4
2024 2,894,231 165,839,732 64.73 6.50 %
2025 3,063,162 182,705,294 71.08 6.52 %
2026 3,262,124 193,623,103 74.51 6.59 %
2027 2,426,834 162,447,085 74.07 5.56 %
2028 3,593,544 236,094,868 82.88 7.23 %
2029 3,388,018 214,156,125 71.73 7.57 %
2030 2,753,383 199,865,582 76.39 6.64 %
2031 2,037,390 155,507,877 83.15 4.74 %
2032 2,316,246 149,657,597 78.41 4.84 %
Thereafter 13,888,894 873,431,981 80.11 27.66 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 87,121 6,830,377 79.51 3.63 % 4
2024 57,606 3,938,261 73.35 2.27 %
2025 128,009 8,449,548 75.80 4.70 %
2026 103,119 20,990,712 238.19 3.72 %
2027 125,280 13,103,550 114.08 4.85 %
2028 125,328 12,125,860 100.82 5.08 %
2029 140,926 12,674,490 111.45 4.80 %
2030 180,747 10,503,771 94.49 4.69 %
2031 61,245 4,555,977 86.02 2.24 %
2032 101,253 7,079,215 71.42 4.18 %
Thereafter 935,283 76,795,993 102.00 31.77 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 1,312,789 78,698,032 66.15 2.85 % 4
2024 2,951,837 169,777,993 64.91 6.26 %
2025 3,191,171 191,154,842 71.27 6.42 %
2026 3,365,243 214,613,815 79.88 6.43 %
2027 2,552,114 175,550,635 76.06 5.52 %
2028 3,718,872 248,220,728 83.60 7.11 %
2029 3,528,944 226,830,615 73.19 7.42 %
2030 2,934,130 210,369,353 77.13 6.53 %
2031 2,098,635 160,063,854 83.23 4.60 %
2032 2,417,499 156,736,812 78.06 4.80 %
Thereafter 14,824,177 950,227,974 81.52 27.89 %

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 54.

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

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

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

Q2 2023
Lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 420,627 373,018 4
2024 632,661 608,762
2025 1,017,031 987,887
2026 799,920 768,609
2027 731,509 723,709
2028 1,237,981 1,232,635
2029 1,122,150 988,940
2030 1,425,054 1,418,381
2031 568,598 501,162
2032 527,583 527,583
Thereafter 4,586,708 3,651,470

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 26,893 26,893 4
2024 8,603 8,603
2025 41,902 41,587
2026 26,513 26,513
2027 67,909 61,595
2028 73,782 73,782
2029 64,164 62,814
2030 93,146 57,846
2031 4,266 4,266
2032 65,011 64,420
Thereafter 481,644 407,744

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 447,520 399,911 4
2024 641,264 617,365
2025 1,058,933 1,029,474
2026 826,433 795,122
2027 799,418 785,304
2028 1,311,763 1,306,417
2029 1,186,314 1,051,754
2030 1,518,200 1,476,227
2031 572,864 505,428
2032 592,594 592,003
Thereafter 5,068,352 4,059,214

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 54.

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

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

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

Q2 2023
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 4,667 4,667 4
Q3 2023 200,793 191,904
Q4 2023 215,167 176,448
Total 2023 420,627 373,018
Q1 2024 113,729 102,367
Q2 2024 250,634 249,574
Q3 2024 60,223 48,746
Q4 2024 208,075 208,075
Total 2024 632,661 608,762

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 1,725 1,725 4
Q3 2023 11,706 11,706
Q4 2023 13,462 13,462
Total 2023 26,893 26,893
Q1 2024 2,901 2,901
Q2 2024 — —
Q3 2024 182 182
Q4 2024 5,520 5,520
Total 2024 8,603 8,603

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 6,392 6,392 4
Q3 2023 212,499 203,610
Q4 2023 228,629 189,910
Total 2023 447,520 399,911
Q1 2024 116,630 105,268
Q2 2024 250,634 249,574
Q3 2024 60,405 48,928
Q4 2024 213,595 213,595
Total 2024 641,264 617,365

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 54.

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

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

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

Q2 2023
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 6,485 3,567
2024 154,753 85,114
2025 12,255 6,740
2026 604,542 332,498
2027 28,614 15,738
2028 305,816 158,419
2029 352,443 176,348
2030 — —
2031 — —
2032 241,672 121,023
Thereafter 186,894 93,447

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 2,000 1,000
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
2031 — —
2032 — —
Thereafter 17,993 8,997

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 6,485 3,567
2024 156,753 86,114
2025 29,473 16,121
2026 610,369 335,703
2027 28,614 15,738
2028 305,816 158,419
2029 390,561 197,313
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 54.

2Includes partially placed in-service leased space.

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

Q2 2023
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 4,022 2,212
Q4 2023 2,463 1,355
Total 2023 6,485 3,567
Q1 2024 107,193 58,956
Q2 2024 — —
Q3 2024 25,347 13,941
Q4 2024 22,213 12,217
Total 2024 154,753 85,114

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 — —
Q2 2024 — —
Q3 2024 2,000 1,000
Q4 2024 — —
Total 2024 2,000 1,000

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 4,022 2,212
Q4 2023 2,463 1,355
Total 2023 6,485 3,567
Q1 2024 107,193 58,956
Q2 2024 — —
Q3 2024 27,347 14,941
Q4 2024 22,213 12,217
Total 2024 156,753 86,114

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 54.

2Includes partially placed in-service leased space.

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

Q2 2023
Lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 82,392 59,502 4
2024 1,041,404 871,155
2025 927,228 620,239
2026 755,144 552,558
2027 396,111 337,205
2028 623,628 427,602
2029 806,384 778,810
2030 735,705 683,064
2031 418,818 368,699
2032 147,795 107,124
Thereafter 4,669,215 3,312,388

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 12,680 11,941
2024 3,342 3,342
2025 4,179 4,179
2026 29,032 22,131
2027 — —
2028 2,424 647
2029 8,463 4,557
2030 44,899 13,263
2031 13,633 10,123
2032 12,182 10,643
Thereafter 226,500 147,209

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 95,072 71,443 4
2024 1,044,746 874,497
2025 931,407 624,418
2026 784,176 574,689
2027 396,111 337,205
2028 626,052 428,249
2029 814,847 783,367
2030 780,604 696,327
2031 432,451 378,822
2032 159,977 117,767
Thereafter 4,895,715 3,459,597

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 54.

2Includes partially placed in-service leased space.

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

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

Q2 2023
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 19,595 11,496 4
Q3 2023 23,577 23,577
Q4 2023 39,220 24,429
Total 2023 82,392 59,502
Q1 2024 365,644 347,828
Q2 2024 265,921 149,358
Q3 2024 195,791 174,651
Q4 2024 214,048 199,318
Total 2024 1,041,404 871,155

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 10,833 10,833
Q4 2023 1,847 1,108
Total 2023 12,680 11,941
Q1 2024 425 425
Q2 2024 — —
Q3 2024 2,917 2,917
Q4 2024 — —
Total 2024 3,342 3,342

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 19,595 11,496 4
Q3 2023 34,410 34,410
Q4 2023 41,067 25,537
Total 2023 95,072 71,443
Q1 2024 366,069 348,253
Q2 2024 265,921 149,358
Q3 2024 198,708 177,568
Q4 2024 214,048 199,318
Total 2024 1,044,746 874,497

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 54.

2Includes partially placed in-service leased space.

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

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

Q2 2023
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 364,520 329,651
2024 649,267 599,823
2025 723,015 694,063
2026 704,051 612,959
2027 522,695 511,731
2028 605,219 577,331
2029 340,009 321,725
2030 350,234 338,621
2031 841,263 814,557
2032 303,153 272,636
Thereafter 777,461 777,461

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 25,546 25,546
2024 7,044 7,044
2025 33,239 33,239
2026 6,572 6,572
2027 13,794 13,794
2028 14,965 14,965
2029 3,403 3,403
2030 6,567 6,567
2031 14,256 10,902
2032 6,357 6,357
Thereafter 27,050 27,050

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 390,066 355,197 81.32
2024 656,311 606,867
2025 756,254 727,302
2026 710,623 619,531
2027 536,489 525,525
2028 620,184 592,296
2029 343,412 325,128
2030 356,801 345,188
2031 855,519 825,459
2032 309,510 278,993
Thereafter 804,511 804,511

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 54.

2Includes partially placed in-service leased space.

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

Q2 2023
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 219,148 219,148
Q4 2023 145,372 110,503
Total 2023 364,520 329,651
Q1 2024 50,353 32,521
Q2 2024 290,878 273,202
Q3 2024 59,738 49,066
Q4 2024 248,298 245,034
Total 2024 649,267 599,823

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 13,194 13,194
Q4 2023 12,352 12,352
Total 2023 25,546 25,546
Q1 2024 6,624 6,624
Q2 2024 — —
Q3 2024 420 420
Q4 2024 — —
Total 2024 7,044 7,044

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 232,342 232,342
Q4 2023 157,724 122,855
Total 2023 390,066 355,197
Q1 2024 56,977 39,145
Q2 2024 290,878 273,202
Q3 2024 60,158 49,486
Q4 2024 248,298 245,034
Total 2024 656,311 606,867

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 54.

2Includes partially placed in-service leased space.

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

Q2 2023
Lease expirations - Seattle region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 94,089 81,969 4
2024 3,340 2,698
2025 24,247 8,164
2026 34,510 33,642
2027 189,746 186,827
2028 646,975 310,444
2029 141,734 121,676
2030 55,243 55,243
2031 49,743 46,598
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 3,718 3,718
2024 1,040 350
2025 — —
2026 3,686 1,241
2027 — —
2028 945 945
2029 — —
2030 — —
2031 3,048 3,048
2032 — —
Thereafter — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 97,807 85,687 4
2024 4,380 3,048
2025 24,247 8,164
2026 38,196 34,883
2027 189,746 186,827
2028 647,920 311,389
2029 141,734 121,676
2030 55,243 55,243
2031 52,791 49,646
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

_____________

1For the Company’s definitions and related disclosures, see the Definitions section of this Supplemental package starting on page 54.

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

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

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

Q2 2023
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 45,001 45,001 4
Q3 2023 — —
Q4 2023 49,088 36,968
Total 2023 94,089 81,969
Q1 2024 — —
Q2 2024 — —
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 3,340 2,698

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 3,718 3,718
Q4 2023 — —
Total 2023 3,718 3,718
Q1 2024 — —
Q2 2024 — —
Q3 2024 1,040 350
Q4 2024 — —
Total 2024 1,040 350

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 45,001 45,001 4
Q3 2023 3,718 3,718
Q4 2023 49,088 36,968
Total 2023 97,807 85,687
Q1 2024 — —
Q2 2024 — —
Q3 2024 1,040 350
Q4 2024 3,340 2,698
Total 2024 4,380 3,048

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 54.

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

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

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

Q2 2023
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 257,555 256,084 4
2024 412,806 394,421
2025 359,386 253,427
2026 363,957 298,296
2027 558,159 417,979
2028 173,925 142,356
2029 625,298 598,024
2030 187,147 121,022
2031 158,968 139,283
2032 1,031,306 829,000
Thereafter 3,648,319 3,061,452

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 18,284 17,808
2024 35,577 33,350
2025 31,471 23,091
2026 31,489 28,465
2027 43,577 39,475
2028 33,212 29,936
2029 26,778 21,981
2030 30,852 30,577
2031 26,042 24,627
2032 17,703 17,703
Thereafter 182,096 161,904

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 275,839 273,892 4
2024 448,383 427,771
2025 390,857 276,518
2026 395,446 326,761
2027 601,736 457,454
2028 207,137 172,292
2029 652,076 620,005
2030 217,999 151,599
2031 185,010 163,910
2032 1,049,009 846,703
Thereafter 3,830,415 3,223,356

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 54.

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

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

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

Q2 2023
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 35,066 35,066 4
Q3 2023 137,558 137,558
Q4 2023 84,931 83,460
Total 2023 257,555 256,084
Q1 2024 26,686 21,087
Q2 2024 68,086 68,086
Q3 2024 33,519 24,501
Q4 2024 284,515 280,746
Total 2024 412,806 394,421

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 5,616 5,616
Q4 2023 12,668 12,192
Total 2023 18,284 17,808
Q1 2024 1,237 1,237
Q2 2024 22,477 20,250
Q3 2024 1,702 1,702
Q4 2024 10,161 10,161
Total 2024 35,577 33,350

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 35,066 35,066 4
Q3 2023 143,174 143,174
Q4 2023 97,599 95,652
Total 2023 275,839 273,892
Q1 2024 27,923 22,324
Q2 2024 90,563 88,336
Q3 2024 35,221 26,203
Q4 2024 294,676 290,907
Total 2024 448,383 427,771

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 54.

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

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

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

Q2 2023
Lease expirations - CBD properties 1, 2, 3

as of June 30, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 176,946 129,337 4
2024 225,412 201,513
2025 335,801 306,342
2026 575,332 544,021
2027 529,495 515,380
2028 1,109,853 1,104,507
2029 726,476 591,916
2030 1,338,193 1,296,220
2031 38,499 31,403
2032 439,405 438,814
Thereafter 4,726,805 3,717,667

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 6,485 3,567
2024 156,753 86,114
2025 29,473 16,122
2026 610,369 335,703
2027 28,614 15,738
2028 305,816 158,419
2029 390,561 197,313
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 73,662 50,034 4
2024 645,019 474,770
2025 679,400 372,411
2026 510,198 300,711
2027 200,551 141,645
2028 579,222 381,419
2029 626,532 595,052
2030 733,430 649,154
2031 271,175 217,546
2032 104,667 62,457
Thereafter 4,797,820 3,361,702

All values are in US Dollars.

Q2 2023
Lease expirations - CBD properties (continued) 1, 2, 3

as of June 30, 2023

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 178,796 178,796
2024 521,687 521,687
2025 337,938 337,938
2026 492,842 492,842
2027 432,220 432,220
2028 536,339 536,339
2029 277,649 277,649
2030 281,046 281,046
2031 795,397 795,397
2032 248,475 248,475
Thereafter 804,511 804,511

All values are in US Dollars.

Seattle, WA

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 97,807 85,687 4
2024 4,380 3,048
2025 24,247 8,164
2026 38,196 34,883
2027 189,746 186,827
2028 647,920 311,389
2029 141,734 121,676
2030 55,243 55,243
2031 52,791 49,646
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 49,328 47,381 4
2024 44,107 23,494
2025 224,808 110,469
2026 171,924 103,239
2027 220,521 76,239
2028 112,933 78,088
2029 83,123 51,052
2030 107,898 41,498
2031 91,055 69,954
2032 552,493 350,187
Thereafter 995,794 756,521

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 54.

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

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

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

Q2 2023
Lease expirations - Suburban properties 1, 2, 3

as of June 30, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 270,574 270,574 4
2024 415,852 415,852
2025 723,132 723,132
2026 251,101 251,101
2027 269,923 269,923
2028 201,910 201,910
2029 459,838 459,838
2030 180,007 180,007
2031 534,365 474,025
2032 153,189 153,189
Thereafter 341,547 341,547

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 21,410 21,410 4
2024 399,727 399,727
2025 252,007 252,007
2026 273,978 273,978
2027 195,560 195,560
2028 46,830 46,830
2029 188,315 188,315
2030 47,174 47,174
2031 161,276 161,276
2032 55,310 55,310
Thereafter 97,895 97,895

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 211,270 176,401
2024 134,624 85,180
2025 418,316 389,364
2026 217,781 126,689
2027 104,269 93,305
2028 83,845 55,957
2029 65,763 47,479
2030 75,755 64,142
2031 60,122 30,061
2032 61,035 30,518
Thereafter — —

All values are in US Dollars.

Q2 2023
Lease expirations - Suburban properties (continued) 1, 2, 3

as of June 30, 2023

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 226,511 226,511 4
2024 404,276 404,276
2025 166,049 166,049
2026 223,522 223,522
2027 381,215 381,215
2028 94,204 94,204
2029 568,953 568,953
2030 110,101 110,101
2031 93,955 93,955
2032 496,516 496,516
Thereafter 2,834,621 2,466,835

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 54.

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

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

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

Q2 2023
Research coverage

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

Equity Research Coverage
Argus Research Company Marie Ferguson 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Camille Bonnel 646.855.1363 / 416.369.2140
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Nicholas Joseph / Michael Griffin 212.816.1909 / 212.816.5871
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs Caitlin Burrows 212.902.4736
Green Street Advisors Dylan Burzinski 949.640.8780
Jefferies & Co. Jonathan Peterson 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
Scotiabank GBM Nicholas Yulico 212.225.6904
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
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Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.410.1100 Rating Agencies
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Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q2 2023
--- ---
Definitions

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

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 58.

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

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q2 2023
Definitions (continued)

evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of the Company’s outstanding indebtedness.

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

Pursuant to the definition of Earnings Before Interest, Taxes, Depreciation and Amortization for Real Estate adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), the Company calculates EBITDAre as net income attributable to Boston Properties, Inc, the most directly comparable GAAP financial measure, plus net income attributable to noncontrolling interests, interest expense, losses (gains) from early extinguishments of debt, depreciation and amortization expense, impairment loss and adjustments to reflect the Company’s share of EBITDAre from unconsolidated joint ventures less gains (losses) on sales of real estate and sales-type leases. EBITDAre is a non-GAAP financial measure. The Company uses EBITDAre internally as a performance measure and believes EBITDAre provides useful information to investors regarding its financial condition and results of operations at the corporate level because, when compared across periods, EBITDAre reflects the impact on operations from trends in occupancy rates, rental rates, operating costs, general and administrative expenses and acquisition and development activities on an unleveraged basis, providing perspective not immediately apparent from net (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 client), fair value lease revenue, amortization and accretion of sales type lease receivable, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense (excluding prepaid ground rent expense), stock-based compensation expense and lease transaction costs that qualify as rent inducements, and (B) Annualized EBITDAre, which is EBITDAre for the applicable fiscal quarter ended multiplied by four (4). Presenting BXP’s Share of EBITDAre – cash allows investors to compare EBITDAre across periods without taking into account the effect of certain non-cash rental revenues, ground rent expense and stock based compensation expense. Similar to depreciation and amortization, because of historical cost accounting, fair value lease revenue may distort operating performance measures at the property level. Additionally, presenting EBITDAre excluding the impact of straight-line rent provides investors with an alternative view of operating performance at the property level that more closely reflects rental revenue generated at the property level without regard to future contractual increases in rental rates. In addition, the Company’s management believes that the presentation of Annualized EBITDAre provides useful information to investors regarding the Company’s results of operations because it enables investors to more easily compare quarterly EBITDAre to EBITDAre from full fiscal years.

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

Q2 2023
Definitions (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, 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. A property will no longer be considered “in-service” when the occupied percentage is below 50% and the Company is no longer actively leasing the property in anticipation of a future development/redevelopment.

Interest Coverage Ratio

Interest Coverage Ratio, calculated including and excluding capitalized interest, is a non-GAAP financial measure equal to BXP’s Share of EBITDAre – cash divided by Adjusted interest expense. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a client), fair value lease revenue, amortization and accretion related to sales type lease receivable, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense (excluding prepaid ground rent expense), stock-based compensation expense and lease transaction costs that qualify as rent inducements. Adjusted interest expense excluding capitalized interest is equal to BXP’s Share of interest expense less (1) BXP’s Share of hedge amortization, (2) BXP’s Share of fair value interest adjustment and (3) BXP’s Share of amortization of financing costs. Adjusted interest expense including capitalized interest is calculated in the same manner but adds back BXP’s Share of capitalized interest. The Company believes that the presentation of its Interest Coverage Ratio provides useful information about the Company’s financial condition because it provides investors additional information on the Company’s ability to meet its debt obligations and incur additional indebtedness. In addition, by analyzing interest coverage ratios over a period of time, trends may emerge that provide investors a better sense of whether a company’s financial condition is improving or declining. The ratios may also be used to compare the financial condition of different companies, which can help when making an investment decision. The Company presents its Interest Coverage Ratio in two ways - including capitalized interest and excluding capitalized interest. GAAP requires the capitalization of interest expense during development. Therefore, for a company like Boston Properties, Inc. that is an active developer of real estate, presenting the Interest Coverage Ratio (excluding capitalized interest) provides an alternative measure of financial condition that may be more indicative of the Company’s ability to meet its interest expense obligations and therefore its overall financial condition. For clarification purposes, this ratio does not include gains (losses) from early extinguishments of debt.

Market Rents

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

Net Debt

Net Debt is equal to (A) the Company’s consolidated debt plus special dividends payable (if any) less (B) cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s). The Company believes that the presentation of Net Debt provides useful information to investors because the Company reviews Net Debt as part of the management of its overall financial flexibility, capital structure and leverage. In particular, Net Debt is an important component of the Company’s ratio of BXP’s Share of Net Debt to BXP’s Share of EBITDAre.  BXP’s Share of Net Debt is calculated in a similar manner to Net Debt, except that (1) BXP’s Share of Debt is utilized instead of the Company’s consolidated debt after eliminating BXP’s Share of the related party note receivable and (2) BXP’s Share of cash is utilized instead of consolidated cash. The Company believes BXP’s Share of Net Debt to BXP’s Share of EBITDAre is useful to investors because it provides an alternative measure of the Company’s financial flexibility, capital structure and leverage based on its percentage ownership interest in all of its assets. Furthermore, certain debt rating agencies, creditors and credit analysts monitor the Company’s Net Debt as part of their assessments of its business. The Company may utilize a considerable portion of its cash and cash equivalents at any given time for purposes other than debt reduction. In addition, cash and cash equivalents and cash held in escrow for potential Section 1031 like kind exchange(s) may not be solely controlled by the Company. The deduction of these items from consolidated debt in the calculation of Net Debt therefore should not be understood to mean that these items are available exclusively for debt reduction at any given time.

Q2 2023
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., the most directly comparable GAAP financial measure, plus (1) net income attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, depreciation and amortization expense, losses from early extinguishments of debt, interest expense, less (2) development and management services revenue, direct reimbursements of payroll and related costs from management services contracts, income (loss) from unconsolidated joint ventures, gains (losses) on sales of real estate, gains (losses) from investments in securities, unrealized gain (loss) on non-real estate investment, interest and other income (loss), gain on sales-type lease and other income - assignment fee. In some cases, the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a client), fair value lease revenue, amortization and accretion related to sales type lease, straight-line ground rent expense adjustment (excluding prepaid ground rent), prepaid ground rent expense and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q2 2023
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Jun-23 31-Mar-23
Revenue $ 817,153 $ 803,200
Partners’ share of revenue from consolidated joint ventures (JVs) (80,383) (79,448)
BXP’s share of revenue from unconsolidated JVs 68,417 65,659
BXP’s Share of revenue $ 805,187 $ 789,411
Straight-line rent $ 26,493 $ 24,806
Partners’ share of straight-line rent from consolidated JVs (4,641) (3,649)
BXP’s share of straight-line rent from unconsolidated JVs 3,075 2,706
BXP’s Share of straight-line rent $ 24,927 $ 23,863
Fair value lease revenue 2 $ 5,850 $ 3,596
Partners’ share of fair value lease revenue from consolidated JVs 2 (140) (140)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 1,066 1,123
BXP’s Share of fair value lease revenue 2 $ 6,776 $ 4,579
Lease termination income $ (164) $ 195
Partners’ share of termination income from consolidated JVs 276 (172)
BXP’s share of termination income from unconsolidated JVs 3,113 877
BXP’s Share of termination income $ 3,225 $ 900
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 $ 26,054 $ 23,064
Partners’ share of parking and other revenue from consolidated JVs (299) (594)
BXP’s share of parking and other revenue from unconsolidated JVs 3,077 2,925
BXP’s Share of parking and other revenue $ 28,832 $ 25,395
Hedge amortization, net of costs $ 1,590 $ 1,590
Partners’ share of hedge amortization, net of costs from consolidated JVs (144) (144)
BXP’s share of hedge amortization, net of costs from unconsolidated JVs 304 304
BXP’s Share of hedge amortization, net of costs $ 1,750 $ 1,750
Straight-line ground rent expense adjustment $ 669 $ 401
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 142 142
BXP’s Share of straight-line ground rent expense adjustment $ 811 $ 543
Depreciation and amortization $ 202,577 $ 208,734
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,858) (17,711)
BXP’s share of depreciation and amortization from unconsolidated JVs 25,756 25,645
BXP’s Share of depreciation and amortization $ 210,475 $ 216,668
Lease transaction costs that qualify as rent inducements 3 $ 3,402 $ 5,386
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (279) (185)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 108 318
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 3,231 $ 5,519
2nd generation tenant improvements and leasing commissions $ 49,500 $ 53,656
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (6,546) (9,904)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 1,038 1,403
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 43,992 $ 45,155 Q2 2023
--- ---
Reconciliations (continued) Maintenance capital expenditures 4 $ 29,015 $ 21,455
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (5,221) (3,216)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 338 269
BXP’s Share of maintenance capital expenditures 4 $ 24,132 $ 18,508
Interest expense $ 142,473 $ 134,207
Partners’ share of interest expense from consolidated JVs (11,871) (11,761)
BXP’s share of interest expense from unconsolidated JVs 24,402 23,701
BXP’s Share of interest expense $ 155,004 $ 146,147
Capitalized interest $ 10,564 $ 10,589
Partners’ share of capitalized interest from consolidated JVs (41) (30)
BXP’s share of capitalized interest from unconsolidated JVs 1,864 1,630
BXP’s Share of capitalized interest $ 12,387 $ 12,189
Amortization of financing costs $ 5,096 $ 4,955
Partners’ share of amortization of financing costs from consolidated JVs (498) (499)
BXP’s share of amortization of financing costs from unconsolidated JVs 676 760
BXP’s Share of amortization of financing costs $ 5,274 $ 5,216
Fair value interest adjustment $ — $ —
Partners’ share of fair value of interest adjustment from consolidated JVs — —
BXP’s share off fair value interest adjustment from unconsolidated JVs 499 499
BXP’s Share of fair value interest adjustment $ 499 $ 499

_____________

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

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

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

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

Q2 2023
Reconciliations (continued)

for the three months ended June 30, 2023

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,742 $ 100,008 $ 175,750
Straight-line rent 5,723 5,227 10,950
Fair value lease revenue 327 21 348
Termination income — (613) (613)
Total lease revenue 81,792 104,643 186,435
Parking and other 9 656 665
Total rental revenue 2 81,801 105,299 187,100
Expenses
Operating 32,825 38,904 71,729
Net Operating Income (NOI) 48,976 66,395 115,371
Other income (expense)
Development and management services revenue 20 599 619
Interest and other income 1,459 1,912 3,371
Interest expense (21,072) (7,658) (28,730)
Depreciation and amortization expense (17,310) (22,977) (40,287)
General and administrative expense (74) (42) (116)
Total other income (expense) (36,977) (28,166) (65,143)
Net income $ 11,999 $ 38,229 $ 50,228
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 18,916 $ 29,042 $ 47,958
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 30,060 $ 37,353 $ 67,413
Unearned portion of capitalized fees 4 $ 495 $ 462 $ 957
Partners’ share of select items 3
Partners’ share of parking and other revenue $ 4 $ 295 $ 299
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 152 $ 498
Partners’ share of depreciation and amortization related to capitalized fees $ 374 $ 419 $ 793
Partners’ share of capitalized interest $ 41 $ — $ 41
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (279) $ (279)
Partners’ share of management and other fees $ 676 $ 866 $ 1,542
Partners’ share of basis differential depreciation and amortization expense $ (24) $ (175) $ (199)
Partners’ share of basis differential interest and other adjustments $ (4) $ 103 $ 99
Reconciliation of Partners’ share of EBITDAre 5
Partners’ NCI $ 3,778 $ 15,990 $ 19,768
Add:
Partners’ share of interest expense after BXP’s basis differential 8,425 3,446 11,871
Partners’ share of depreciation and amortization expense after BXP’s basis differential 7,274 10,584 17,858
Partners’ share of EBITDAre $ 19,477 $ 30,020 $ 49,497
Q2 2023
--- ---
Reconciliations (continued)

for the three months ended June 30, 2023

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 3 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 2 $ 32,720 $ 47,385 $ 80,105
Less: Termination income — (276) (276)
Rental revenue (excluding termination income) 2 32,720 47,661 80,381
Less: Operating expenses (including partners’ share of management and other fees) 13,804 18,364 32,168
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,916 $ 29,318 $ 48,234
Rental revenue (excluding termination income) 2 $ 32,720 $ 47,661 $ 80,381
Less: Straight-line rent 2,289 2,352 4,641
Fair value lease revenue 131 9 140
Add: Lease transaction costs that qualify as rent inducements — 279 279
Subtotal 30,300 45,579 75,879
Less: Operating expenses (including partners’ share of management and other fees) 13,804 18,364 32,168
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,496 $ 27,236 $ 43,732
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 32,720 $ 47,385 $ 80,105
Add: Development and management services revenue 8 270 278
Revenue $ 32,728 $ 47,655 $ 80,383

_________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

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

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

5Amounts represent the partners’ share based on their respective ownership percentages and are adjusted for basis differentials and the allocations of management and other fees and depreciation and amortization related to capitalized fees.

Q2 2023
Reconciliations (continued)

for the three months ended June 30, 2023

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,680 $ 34,242 $ 23,399 $ 11,635 $ 6,693 $ 29,163 $ 129,812
Straight-line rent 1,682 (132) 556 (51) 531 4,326 6,912
Fair value lease revenue — 116 1,538 21 1,134 — 2,809
Termination income — 21 — — — 15,507 15,528
Total lease revenue 26,362 34,247 25,493 11,605 8,358 48,996 155,061
Parking and other 1 4,044 88 203 484 1,977 6,797
Total rental revenue 3 26,363 38,291 25,581 11,808 8,842 50,973 161,858
Expenses
Operating 8,822 14,540 15,261 4 4,719 3,262 14,258 60,862
Net operating income/(loss) 17,541 23,751 10,320 7,089 5,580 36,715 100,996
Other income/(expense)
Development and management services revenue — — 561 — — 11 572
Interest and other income 448 540 286 8 117 942 2,341
Interest expense (11,486) (11,870) (13,024) — (3,546) (18,873) (58,799)
Unrealized gain on derivative instruments — — 14,457 — — — 14,457
Transaction costs (6) — — — (3) (18) (27)
Depreciation and amortization expense (8,416) (12,546) (8,459) (4,749) (5,168) (11,895) (51,233)
General and administrative expense (1) (23) (118) (5) (5) (9) (161)
Loss from early extinguishment of debt — — — — — (3) (3)
Total other income/(expense) (19,461) (23,899) (6,297) (4,746) (8,605) (29,845) (92,853)
Net income/(loss) $ (1,920) $ (148) $ 4,023 $ 2,343 $ (3,025) $ 6,870 $ 8,143
BXP’s share of select items:
BXP’s share of parking and other revenue $ 1 $ 2,117 $ 35 $ 102 $ 163 $ 659 5 $ 3,077
BXP’s share of amortization of financing costs $ 167 $ 96 $ 69 $ — $ 29 $ 315 5 $ 676
BXP’s share of hedge amortization, net of costs $ — $ — $ — $ — $ 252 $ 52 $ 304
BXP’s share of fair value interest adjustment $ — $ — $ 499 $ — $ — $ — $ 499
BXP’s share of capitalized interest $ — $ — $ 1,757 $ — $ — $ 107 5 $ 1,864
Reconciliation of BXP’s share of EBITDAre
Income/(loss) from unconsolidated joint ventures $ (964) $ (980) $ (5,972) $ 450 $ (1,032) $ 1,830 5 $ (6,668)
Add:
BXP’s share of interest expense 5,744 6,279 4,726 — 1,194 6,459 5 24,402
BXP’s share of depreciation and amortization expense 4,212 7,719 6 4,968 2,880 6 1,739 4,238 5 25,756
BXP’s share of loss from early extinguishment of debt — — — — — 1 1
BXP’s share of EBITDAre $ 8,992 $ 13,018 6 $ 3,722 $ 3,330 6 $ 1,901 $ 12,528 5 $ 43,491 Q2 2023
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 13,182 $ 20,439 6 $ 8,145 $ 5,692 6 $ 2,977 $ 17,699 5 $ 68,134
BXP’s share of operating expenses 4,411 7,671 4,782 2,360 1,099 5,557 5 25,880
BXP’s share of net operating income/(loss) 8,771 12,768 6 3,363 3,332 6 1,878 12,142 5 42,254
Less:
BXP’s share of termination income — 12 — — — 3,101 3,113
BXP’s share of net operating income/(loss) (excluding termination income) 8,771 12,756 3,363 3,332 1,878 9,041 5 39,141
Less:
BXP’s share of straight-line rent 841 23 6 603 (19) 6 179 1,448 5 3,075
BXP’s share of fair value lease revenue — 365 6 527 (208) 6 382 — 1,066
Add:
BXP’s share of straight-line ground rent expense adjustment — — 142 — — — 142
BXP’s share of lease transaction costs that qualify as rent inducements — (110) 87 — — 131 5 108
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 7,930 $ 12,258 6 $ 2,462 $ 3,559 6 $ 1,317 $ 7,724 5 $ 35,250
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 13,182 $ 20,439 6 $ 8,145 $ 5,692 6 $ 2,977 $ 17,699 5 $ 68,134
Add:
BXP’s share of development and management services revenue — — 281 — — 2 283
BXP’s share of revenue $ 13,182 $ 20,439 6 $ 8,426 $ 5,692 6 $ 2,977 $ 17,701 5 $ 68,417

_____________

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 clients and service income from clients.

3 See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

4 Includes approximately $284 of straight-line ground rent expense.

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

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

Q2 2023
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Mar-23 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 143,047
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 9,078 16,361
Noncontrolling interest in property partnerships 18,660 17,549
Net income 105,628 176,957
Add:
Interest expense 134,207 101,228
Depreciation and amortization expense 208,734 177,624
Transaction costs 911 —
Payroll and related costs from management services contracts 5,235 4,065
General and administrative expense 55,802 43,194
Less:
Interest and other income (loss) 10,941 1,228
Unrealized gain on non-real estate investment 259 —
Gains (losses) from investments in securities 1,665 (2,262)
Income (loss) from unconsolidated joint ventures (7,569) 2,189
Gains on sales of real estate — 22,701
Direct reimbursements of payroll and related costs from management services contracts 5,235 4,065
Development and management services revenue 8,980 5,831
Net Operating Income (NOI) 491,006 469,316
Add:
BXP’s share of NOI from unconsolidated joint ventures 40,756 37,321
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,097 47,055
BXP’s Share of NOI 484,665 459,582
Less:
Termination income 195 2,078
BXP’s share of termination income from unconsolidated joint ventures 877 606
Add:
Partners’ share of termination income from consolidated joint ventures 172 221
BXP’s Share of NOI (excluding termination income) $ 483,765 $ 457,119
Net Operating Income (NOI) $ 491,006 $ 469,316
Less:
Termination income 195 2,078
NOI from non Same Properties (excluding termination income) 42,921 21,598
Same Property NOI (excluding termination income) 447,890 445,640
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 46,925 46,834
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 39,879 36,715
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3,849 448
BXP’s Share of Same Property NOI (excluding termination income) $ 436,995 $ 435,073
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 1,922
Change in BXP’s Share of Same Property NOI (excluding termination income) 0.4 %
Q2 2023
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Mar-23 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 143,047
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 9,078 16,361
Noncontrolling interest in property partnerships 18,660 17,549
Net income 105,628 176,957
Add:
Interest expense 134,207 101,228
Depreciation and amortization expense 208,734 177,624
Transaction costs 911 —
Payroll and related costs from management services contracts 5,235 4,065
General and administrative expense 55,802 43,194
Less:
Interest and other income (loss) 10,941 1,228
Unrealized gain on non-real estate investment 259 —
Gains (losses) from investments in securities 1,665 (2,262)
Income (loss) from unconsolidated joint ventures (7,569) 2,189
Gains on sales of real estate — 22,701
Direct reimbursements of payroll and related costs from management services contracts 5,235 4,065
Development and management services revenue 8,980 5,831
Net Operating Income (NOI) 491,006 469,316
Less:
Straight-line rent 24,806 22,186
Fair value lease revenue 3,596 1,655
Amortization and accretion related to sales type lease 226 —
Termination income 195 2,078
Add:
Straight-line ground rent expense adjustment 1 591 576
Lease transaction costs that qualify as rent inducements 2 5,386 (4,583)
NOI - cash (excluding termination income) 468,160 439,390
Less:
NOI - cash from non Same Properties (excluding termination income) 33,115 13,269
Same Property NOI - cash (excluding termination income) 435,045 426,121
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 43,321 43,366
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) — —
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 36,510 22,759
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3,067 (243)
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 425,167 $ 405,757
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 19,410
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 4.8 %

_____________

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 $(190) and $168 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the Company has remaining lease payments aggregating approximately $24.7 million, all of which it expects to incur by the end of 2024 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2024 may vary significantly.

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

Q2 2023
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Jun-22 31-Mar-22
Revenue
Lease $ 721,899 $ 718,120
Parking and other 26,474 20,931
Insurance proceeds 3,872 803
Hotel revenue 12,089 4,557
Development and management services 6,354 5,831
Direct reimbursements of payroll and related costs from management services contracts 3,239 4,065
Total revenue 773,927 754,307
Expenses
Operating 137,531 137,088
Real estate taxes 132,056 131,527
Demolition costs — 5
Restoration expenses related to insurance claim 4,261 1,635
Hotel operating 6,444 4,840
General and administrative 34,665 43,194
Payroll and related costs from management services contracts 3,239 4,065
Transaction costs 496 —
Depreciation and amortization 183,146 177,624
Total expenses 501,838 499,978
Other income (expense)
Income (loss) from unconsolidated joint ventures (54) 2,189
Gains on sales of real estate 96,247 22,701
Losses from investments in securities (4,716) (2,262)
Interest and other income (loss) 1,195 1,228
Other income - assignment fee 6,624 —
Interest expense (104,142) (101,228)
Net income 267,243 176,957
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,546) (17,549)
Noncontrolling interest - common units of the Operating Partnership (25,708) (16,361)
Net income attributable to Boston Properties, Inc. $ 222,989 $ 143,047
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 1.42 $ 0.91
Net income attributable to Boston Properties, Inc. per share - diluted $ 1.42 $ 0.91

66

Document

Exhibit 99.2

bxp-color.gif

BXP ANNOUNCES SECOND QUARTER 2023 RESULTS;

REPORTS Q2 EPS OF $0.66 AND FFO PER SHARE OF $1.86

Exceeded Q2 Guidance for EPS and FFO; Executed Approximately 938,000 SF of Leases in Q2; and Opened the Highly Anticipated View Boston Observation Deck Experience

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

Financial highlights for the second quarter include:

•Revenue increased 5.6% to $817.2 million for the quarter ended June 30, 2023, compared to $773.9 million for the quarter ended June 30, 2022.

•Net income attributable to common shareholders of $104.3 million, or $0.66 per diluted share (EPS), for the quarter ended June 30, 2023, compared to $223.0 million, or $1.42 per diluted share, for the quarter ended June 30, 2022. The decrease compared to Q2 2022 is primarily due to:

◦$96.2 million of higher gains on sales recorded in Q2 2022;

◦greater depreciation and amortization expense of $19.4 million in Q2 2023 primarily due to asset acquisitions in Q2 and Q3 of 2022; and

◦higher interest expenses, net of an increase in interest income, of $22.2 million;

◦offset by higher contributions from portfolio operations of approximately $19.4 million in Q2 2023.

•Funds from Operations (FFO) of $292.8 million, or $1.86 per diluted share, for the quarter ended June 30, 2023, compared to FFO of $304.6 million, or $1.94 per diluted share, for the quarter ended June 30, 2022. The decrease compared to Q2 2022 is primarily due to higher interest expenses, net of an increase in interest income, of $22.2 million, partially offset by higher contributions from portfolio operations of approximately $19.4 million.

•Both EPS and FFO per share exceeded the mid-points of BXP’s guidance by $0.06 per share, as a result of better-than-projected portfolio performance. The portfolio outperformance was partially due to lower-than-projected operating expenses.

BXP also provided updated guidance for third quarter 2023 EPS of $0.63 - $0.65 and FFO of $1.83 - $1.85 per diluted share, and full year 2023 EPS of $2.42 - $2.47 and FFO of $7.24 - $7.29 per diluted share.

See “EPS and FFO per Share Guidance” below.

Second quarter and recent business highlights include:

–more–

•Executed approximately 938,000 square feet of leases with a weighted-average lease term of 8.0 years.

•Opened View Boston, the highly anticipated observation deck encompassing the top three floors of the Prudential Tower in Boston, MA. The 63,000 square-foot experience provides a unique opportunity to enjoy 360-degree panoramic views of the city, bites at the Stratus cocktail bar and The Beacon bistro, and interactive state-of-the-art immersive exhibits that showcase Boston's many neighborhoods and cultural landmarks.

•Completed and fully placed in-service 2100 Pennsylvania Avenue in Washington, D.C., an approximately 476,000 square foot premier workplace that is approximately 62% occupied and approximately 91% leased (including vacant space for which we have signed leases that have not yet commenced in accordance with GAAP).

•A joint venture in which BXP has a 55% interest elected to pause vertical construction on the first phase of Platform 16 in San Jose, CA. Platform 16 was planned to be constructed in phases to best accommodate market demand. Completion of the underground parking garage and building foundation elements will take place over the next several months to ensure that the project is positioned to mobilize quickly as demand improves.

•A joint venture in which BXP has a 50% interest exercised an option to extend by one year the maturity date of its $252.6 million construction loan collateralized by its 7750 Wisconsin Avenue property. The completed 734,000 square foot build-to-suit, premier workplace is located in Bethesda, Maryland and is 100% leased to an affiliate of Marriott International, Inc. The loan bears interest at a variable rate equal to Term SOFR plus 1.35% per annum and now matures on April 26, 2024, with a one-year extension option, subject to certain conditions.

•Boston Properties Limited Partnership (“BPLP”) entered into four interest rate swap contracts with notional amounts aggregating $1.2 billion. BPLP entered into these interest rate swap contracts to reduce its exposure to the variability in future cash flows attributable to changes in the interest rate on its 2023 Unsecured Term Loan. These interest rate swaps were entered into to fix Term SOFR, the reference rate for the Unsecured Term Loan, at a weighted-average rate of 4.6420% for the period commencing on May 4, 2023 and ending on May 16, 2024.

•BPLP completed a public offering of $750.0 million aggregate principal amount of 6.500% unsecured senior notes due 2034. The net proceeds from the offering were approximately $741.3 million after deducting underwriting discounts and estimated transaction expenses.

•A joint venture in which BXP has a 30% interest repaid an outstanding $105.0 million loan collateralized by the property located at 500 North Capitol Street, NW, in Washington, DC with the proceeds of a new loan evidenced by two promissory notes totaling $105.0 million that bears interest at an aggregate, weighted-average fixed rate of 6.83% per annum and matures on June 5, 2026. 500 North Capitol Street, NW is a 231,000 square foot premier workplace in Washington, DC that is 99% leased.

•In July 2023, completed the redevelopment and fully placed in-service 140 Kendrick Street - Building A in Needham, Massachusetts. The property is 100% leased and is the first Net Zero, Carbon Neutral office repositioning of this scale in Massachusetts.

•On July 28, 2023, BXP entered into a joint venture agreement with an institutional investor for the future development of 343 Madison Avenue located on Madison Avenue between 44th

–more–

and 45th Streets in New York City, New York adjacent to Grand Central Station. BXP owns a 55% interest in the venture and its partner owns a 45% interest, and BXP will provide customary development, property management, and leasing services. The 343 Madison Avenue project contemplates the construction of (1) a direct entrance to the Long Island Railroad’s new east side access project (Grand Central Madison) (“Phase 1”) and (2) an approximately 900,000 square foot premier workplace building with ground floor retail (“Phase 2”). Subsequently, on August 1, 2023, the joint venture executed a 99-year ground lease with the Metropolitan Transportation Authority for the approximately 25,000 square foot site. The ground lease requires the joint venture to construct the direct access to Grand Central Madison as Phase 1 of the development project. The joint venture has the option until July 31, 2025 to terminate the ground lease prior to construction of the new building and receive reimbursement for the cost of the construction of access to Grand Central Station. There can be no assurance that Phase 1 will be completed on the terms currently contemplated or that Phase 2 of the development project will commence on the terms currently contemplated or at all.

•On July 28, 2023, a joint venture in which BXP has a 50% interest exercised an option to extend by one year the maturity date of its loan collateralized by 100 Causeway in Boston, Massachusetts. The 634,000 square foot premier workplace is located in Boston, MA and is 95% leased. The modified and extended loan has an outstanding balance of $336.6 million, which included an approximately $4.0 million principal repayment and the interest rate was reduced from Term SOFR plus 1.60% to Term SOFR plus 1.48% per annum. The loan now matures on September 5, 2024, with a one-year extension option, subject to certain conditions.

•After 25 years leading the San Francisco region for BXP, Bob Pester has elected to retire from his position as Executive Vice President in early 2024. Rod Diehl, currently Senior Vice President, Leasing for the San Francisco region, will succeed Mr. Pester upon his retirement. As part of this transition, BXP will reorganize West Coast operations for the San Francisco, Los Angeles, and Seattle regions under one management structure, effective immediately. Messrs. Pester and Diehl will jointly lead West Coast operations with Mr. Pester transitioning duties to Mr. Diehl over the months ahead. BXP will continue to maintain its regional presence in Los Angeles and Seattle.

•Effective July 28, 2023, BXP’s independent directors appointed Joel I. Klein to serve as the lead independent director, replacing Kelly A. Ayotte. Ms. Ayotte stepped down as the lead independent director due to the additional time commitment and responsibilities of that role, and the independent directors determined that it is in the best interests of BXP and its stockholders that Mr. Klein once again assume that role. Ms. Ayotte served as BXP’s lead independent director since May 2022 and will remain on BXP’s Board of Directors. Mr. Klein previously served as BXP’s lead independent director from May 2016 to May 2019 and as its independent Chairman from May 2019 to May 2022.

•Continued BXP’s leadership and ongoing commitment to sustainability and published BXP’s 2022 ESG Report in conjunction with Earth Day in April 2023, which highlights that, among other things, BXP achieved its energy and water reduction targets in 2022 and remains on track to achieve carbon-neutral operations by 2025. In conjunction with the publication, BXP hosted its second annual ESG Investor Update Webcast on May 31, 2023.

–more–

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

EPS and FFO per Share Guidance:

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

Third Quarter 2023 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 0.63 $ 0.65 $ 2.42 $ 2.47
Add:
Projected Company share of real estate depreciation and amortization 1.20 1.20 4.82 4.82
Projected FFO per share (diluted) $ 1.83 $ 1.85 $ 7.24 $ 7.29

BXP will host a conference call on Wednesday, August 2, 2023 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter 2023 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BIac804611f1af4449a41bec3ca33cb641 to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.

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

BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that

–more–

power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 54.1 million square feet and 191 properties, including 13 properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

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

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
June 30, 2023 December 31, 2022
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 24,642,681 $ 24,261,588
Construction in progress 482,850 406,574
Land held for future development 637,191 721,501
Right of use assets - finance leases 237,526 237,510
Right of use assets - operating leases 166,421 167,351
Less: accumulated depreciation (6,568,568) (6,298,082)
Total real estate 19,598,101 19,496,442
Cash and cash equivalents 1,581,575 690,333
Cash held in escrows 46,915 46,479
Investments in securities 33,481 32,277
Tenant and other receivables, net 91,968 81,389
Related party note receivable, net 88,834 78,576
Sales-type lease receivable, net 13,250 12,811
Accrued rental income, net 1,318,320 1,276,580
Deferred charges, net 710,820 733,282
Prepaid expenses and other assets 77,457 43,589
Investments in unconsolidated joint ventures 1,780,959 1,715,911
Total assets $ 25,341,680 $ 24,207,669
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,274,764 $ 3,272,368
Unsecured senior notes, net 10,985,395 10,237,968
Unsecured line of credit — —
Unsecured term loan, net 1,196,046 730,000
Lease liabilities - finance leases 251,874 249,335
Lease liabilities - operating leases 204,826 204,686
Accounts payable and accrued expenses 434,574 417,545
Dividends and distributions payable 171,465 170,643
Accrued interest payable 111,088 103,774
Other liabilities 418,813 450,918
Total liabilities 17,048,845 15,837,237
Commitments and contingencies — —
Redeemable deferred stock units 6,292 6,613
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,932,300 and 156,836,767 issued and 156,853,400 and 156,757,867 outstanding at June 30, 2023 and December 31, 2022, respectively 1,569 1,568
Additional paid-in capital 6,561,161 6,539,147
Dividends in excess of earnings (516,550) (391,356)
Treasury common stock at cost, 78,900 shares at June 30, 2023 and December 31, 2022 (2,722) (2,722)
Accumulated other comprehensive loss (3,406) (13,718)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,040,052 6,132,919
Noncontrolling interests:
Common units of the Operating Partnership 689,123 683,583
Property partnerships 1,557,368 1,547,317
Total equity 8,286,543 8,363,819
Total liabilities and equity $ 25,341,680 $ 24,207,669

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended June 30, Six months ended June 30,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Revenue
Lease $ 761,733 $ 721,899 $ 1,518,608 $ 1,440,019
Parking and other 26,984 30,346 50,993 52,080
Hotel 13,969 12,089 22,070 16,646
Development and management services 9,858 6,354 18,838 12,185
Direct reimbursements of payroll and related costs from management services contracts 4,609 3,239 9,844 7,304
Total revenue 817,153 773,927 1,620,353 1,528,234
Expenses
Operating
Rental 291,036 273,848 582,344 544,103
Hotel 8,161 6,444 14,832 11,284
General and administrative 44,175 34,665 99,977 77,859
Payroll and related costs from management services contracts 4,609 3,239 9,844 7,304
Transaction costs 308 496 1,219 496
Depreciation and amortization 202,577 183,146 411,311 360,770
Total expenses 550,866 501,838 1,119,527 1,001,816
Other income (expense)
Income (loss) from unconsolidated joint ventures (6,668) (54) (14,237) 2,135
Gains on sales of real estate — 96,247 — 118,948
Interest and other income (loss) 17,343 1,195 28,284 2,423
Other income - assignment fee — 6,624 — 6,624
Gains (losses) from investments in securities 1,571 (4,716) 3,236 (6,978)
Unrealized gain on non-real estate investment 124 — 383 —
Interest expense (142,473) (104,142) (276,680) (205,370)
Net income 136,184 267,243 241,812 444,200
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (19,768) (18,546) (38,428) (36,095)
Noncontrolling interest—common units of the Operating Partnership (12,117) (25,708) (21,169) (42,061)
Net income attributable to Boston Properties, Inc. $ 104,299 $ 222,989 $ 182,215 $ 366,044
Basic earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.67 $ 1.42 $ 1.16 $ 2.33
Weighted average number of common shares outstanding 156,826 156,720 156,815 156,685
Diluted earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.66 $ 1.42 $ 1.16 $ 2.33
Weighted average number of common and common equivalent shares outstanding 157,218 157,192 157,131 157,098

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended June 30, Six months ended June 30,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. $ 104,299 $ 222,989 $ 182,215 $ 366,044
Add:
Noncontrolling interest - common units of the Operating Partnership 12,117 25,708 21,169 42,061
Noncontrolling interests in property partnerships 19,768 18,546 38,428 36,095
Net income 136,184 267,243 241,812 444,200
Add:
Depreciation and amortization expense 202,577 183,146 411,311 360,770
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,858) (17,414) (35,569) (35,067)
Company’s share of depreciation and amortization from unconsolidated joint ventures 25,756 21,120 51,401 43,164
Corporate-related depreciation and amortization (442) (413) (911) (817)
Less:
Gains on sales of real estate — 96,247 — 118,948
Unrealized gain on non-real estate investment 124 — 383 —
Noncontrolling interests in property partnerships 19,768 18,546 38,428 36,095
Funds from operations (FFO) attributable to the Operating Partnership (including Boston Properties, Inc.) 326,325 338,889 629,233 657,207
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 33,481 34,329 64,371 66,509
Funds from operations attributable to Boston Properties, Inc. $ 292,844 $ 304,560 $ 564,862 $ 590,698
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.74 % 89.87 % 89.77 % 89.88 %
Weighted average shares outstanding - basic 156,826 156,720 156,815 156,685
FFO per share basic $ 1.87 $ 1.94 $ 3.60 $ 3.77
Weighted average shares outstanding - diluted 157,218 157,192 157,131 157,098
FFO per share diluted $ 1.86 $ 1.94 $ 3.59 $ 3.76

(1)Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, 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 calculation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current Nareit definition or that interpret the current Nareit definition differently.

In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income 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.

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Occupied by Location (1) % Leased by Location (2)
June 30, 2023 December 31, 2022 June 30, 2023 December 31, 2022
Boston 90.7 % 90.2 % 92.1 % 92.7 %
Los Angeles 86.0 % 88.3 % 86.2 % 88.6 %
New York 88.5 % 86.8 % 90.6 % 90.9 %
San Francisco 88.2 % 88.5 % 89.1 % 88.8 %
Seattle 87.9 % 88.3 % 90.5 % 90.9 %
Washington, DC 84.9 % 88.7 % 89.2 % 93.0 %
Total Portfolio 88.3 % 88.6 % 90.4 % 91.5 %

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

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

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

#

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