Equibles

8-K

BXP, Inc. (BXP)

8-K 2022-07-26 For: 2022-07-26
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): July 26, 2022

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On July 26, 2022, 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 2022. 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 endedJune30, 2022.
*99.2 Press release datedJuly26, 2022.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: July 26, 2022

Document

Exhibit 99.1

madisoncentreexterior11375.jpg

bxp-colora.gif

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2022

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s complete portfolio totals 53.7 million square feet and 193 properties, including twelve properties under construction/redevelopment. The Company’s properties include 173 office properties, 12 retail properties, seven 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. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned a tenth 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 statement. These factors include, without limitation, uncertainties and risks related to the impact of (1) the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, (2) the impact of geopolitical conflicts, including the ongoing war in Ukraine, and (3) the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, increasing interest rates, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and client behavior, as well as possible future governmental responses; risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets; risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets; BXP’s ability to enter into new leases or renew leases on favorable terms, dependence on clients’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. 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 may be required by law.

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 55.

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

GENERAL INFORMATION

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

(Cover photo: Madison Centre, Seattle, WA)

Q2 2022
Table of contents Page
--- ---
OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 4
Consolidated Income Statements 5
Funds From Operations (FFO) 6
Funds Available for Distribution (FAD) 7
Net Operating Income (NOI) 8
Same Property Net Operating Income (NOI) by Reportable Segment 10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 12
Acquisitions and Dispositions 13
DEVELOPMENT ACTIVITY
Construction in Progress 14
Land Parcels and Purchase Options 16
LEASING ACTIVITY
Leasing Activity 17
PROPERTY STATISTICS
Portfolio Overview 18
Residential and Hotel Performance 19
In-Service Property Listing 21
Top 20 Clients Listing and Portfolio Client Diversification 25
Occupancy by Location 26
DEBT AND CAPITALIZATION
Capital Structure 27
Debt Analysis 28
Senior Unsecured Debt Covenant Compliance Ratios 29
Net Debt to EBITDAre 30
Debt Ratios 31
JOINT VENTURES
Consolidated Joint Ventures 32
Unconsolidated Joint Ventures 34
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 37
Boston 38
Los Angeles 40
New York 42
San Francisco 44
Seattle 46
Washington, DC 48
CBD 50
Suburban 52
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 54
Definitions 55
Reconciliations 59
Consolidated Income Statement - Prior Year 67
Q2 2022
--- ---
Company profile

SNAPSHOT

(as of June 30, 2022)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 193
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 53.7 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, 2 175.0 million
Closing Price, at the end of the quarter $88.98 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 4.4%
Consolidated Market Capitalization 2 $29.2 billion
BXP’s Share of Market Capitalization 2, 3 $29.3 billion
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:

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

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

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

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

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

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

MANAGEMENT

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

____________________

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

2For additional detail, see page 27.

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

Q2 2022
Guidance and assumptions

GUIDANCE

BXP’s guidance for the third quarter and full year 2022 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on July 26, 2022 and those referenced during the Company’s conference call scheduled for July 27, 2022.  Except as otherwise publicly disclosed, the estimates do not include the impacts of any potential (1) capital markets activity, (2) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (3) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 57. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Third Quarter 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.74 $ 0.76 $ 5.40 $ 5.45
Add:
Projected Company share of real estate depreciation and amortization 1.12 1.12 4.37 4.37
Projected Company share of (gains)/losses on sales of real estate — — (2.29) (2.29)
Projected FFO per share (diluted) $ 1.86 $ 1.88 $ 7.48 $ 7.53

ASSUMPTIONS

(dollars in thousands)

Full Year 2022
Low High
Operating property activity:
Average In-service portfolio occupancy 88.50 % 89.50 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) 3.50 % 4.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 5.50 % 6.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 100,000 $ 107,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (30,000) $ (25,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 130,000 $ 140,000
Termination income $ 4,000 $ 6,000
Other revenue (expense):
Development, management services and other revenue $ 28,000 $ 34,000
General and administrative expense 1 $ (155,000) $ (150,000)
Net interest expense $ (425,000) $ (415,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (146,000) $ (142,000)

_______________

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

Q2 2022
Financial highlights

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

Three Months Ended
30-Jun-22 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 222,989 $ 143,047
Net income attributable to Boston Properties, Inc. per share - diluted $ 1.42 $ 0.91
FFO attributable to Boston Properties, Inc. 1 $ 304,560 $ 286,136
Diluted FFO per share 1 $ 1.94 $ 1.82
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 222,114 $ 248,032
Selected items:
Revenue $ 773,927 $ 754,307
Recoveries from clients $ 116,666 $ 115,910
Service income from clients $ 2,452 $ 1,787
BXP’s Share of revenue 3 $ 753,433 $ 735,572
BXP’s Share of straight-line rent 3 $ 30,401 $ 35,103
BXP’s Share of fair value lease revenue 3, 4 $ 2,411 $ 2,185
BXP’s Share of termination income 3 $ 1,280 $ 2,463
Ground rent expense $ 3,442 $ 3,155
Capitalized interest $ 14,079 $ 13,740
Capitalized wages $ 4,061 $ 4,050
Income (loss) from unconsolidated joint ventures $ (54) $ 2,189
BXP’s share of FFO from unconsolidated joint ventures 5 $ 21,066 $ 24,233
Net income attributable to noncontrolling interests in property partnerships $ 18,546 $ 17,549
FFO attributable to noncontrolling interests in property partnerships 6 $ 35,960 $ 35,202
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 4,868 $ 1,245
Below-market rents (included within Other Liabilities) $ 42,119 $ 21,095
Accrued rental income liability (included within Other Liabilities) $ 123,137 $ 118,460
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 4.30 4.16
Interest Coverage Ratio (including capitalized interest) 7 3.75 3.60
Fixed Charge Coverage Ratio 7 3.30 3.31
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.46 7.50
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 6.1 % 5.5 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 9.5 % 4.8 %
FAD Payout Ratio 2 77.23 % 69.14 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.6 % 63.5 %
Occupancy of In-Service Properties 89.5 % 89.1 %
Capitalization:
Consolidated Debt $ 13,652,773 $ 13,010,124
BXP’s Share of Debt 10 $ 13,741,991 $ 13,078,509
Consolidated Market Capitalization $ 29,219,913 $ 35,542,525
Consolidated Debt/Consolidated Market Capitalization 46.72 % 36.60 %
BXP’s Share of Market Capitalization 10 $ 29,309,131 $ 35,610,910
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 46.89 % 36.73 %

_____________

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 55.

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

5For a quantitative reconciliation for the three months ended June 30, 2022, see page 36.

6For a quantitative reconciliation for the three months ended June 30, 2022, see page 33.

7For a quantitative reconciliation for the three months ended June 30, 2022 and March 31, 2022, see page 31.

8For a quantitative reconciliation for the three months ended June 30, 2022 and March 31, 2022, see page 30.

9For a quantitative reconciliation for the three months ended June 30, 2022 and March 31, 2022, see pages 10, 65 and 66.

10For a quantitative reconciliation for June 30, 2022, see page 27.

Q2 2022
Consolidated Balance Sheets

(unaudited and in thousands)

30-Jun-22 31-Mar-22
ASSETS
Real estate $ 23,522,913 $ 22,472,940
Construction in progress 593,958 846,775
Land held for future development 583,700 582,511
Right of use assets - finance leases 237,488 237,501
Right of use assets - operating leases 168,370 169,248
Less accumulated depreciation (6,077,270) (5,995,760)
Total real estate 19,029,159 18,313,215
Cash and cash equivalents 456,491 436,271
Cash held in escrows 46,359 46,072
Investments in securities 31,457 36,032
Tenant and other receivables, net 64,607 56,132
Related party note receivable, net 78,576 78,544
Notes receivable, net — 9,674
Accrued rental income, net 1,265,480 1,243,395
Deferred charges, net 684,078 609,205
Prepaid expenses and other assets 55,232 128,472
Investments in unconsolidated joint ventures 1,554,994 1,518,622
Total assets $ 23,266,433 $ 22,475,634
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,269,948 $ 3,268,745
Unsecured senior notes, net 9,489,030 9,486,379
Unsecured line of credit 165,000 255,000
Unsecured term loan, net 728,795 —
Lease liabilities - finance leases 246,832 245,554
Lease liabilities - operating leases 204,643 204,677
Accounts payable and accrued expenses 342,467 304,576
Dividends and distributions payable 170,937 170,869
Accrued interest payable 96,821 90,861
Other liabilities 401,360 396,283
Total liabilities 15,115,833 14,422,944
Commitments and contingencies — —
Redeemable deferred stock units 7,931 11,031
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, 156,805,330 and 156,790,614 issued and 156,726,430 and 156,711,714 outstanding at June 30, 2022 and March 31, 2022, respectively 1,567 1,567
Additional paid-in capital 6,524,997 6,509,663
Dividends in excess of earnings (567,016) (636,421)
Treasury common stock at cost, 78,900 shares at June 30, 2022 and March 31, 2022 (2,722) (2,722)
Accumulated other comprehensive loss (27,077) (28,485)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,929,749 5,843,602
Noncontrolling interests:
Common units of the Operating Partnership 660,214 649,602
Property partnerships 1,552,706 1,548,455
Total equity 8,142,669 8,041,659
Total liabilities and equity $ 23,266,433 $ 22,475,634
Q2 2022
--- ---
Consolidated Income Statements

(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 claims 4,261 1,635
Hotel operating 6,444 4,840
General and administrative 1 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 1 (4,716) (2,262)
Interest and other income (loss) 1,195 1,228
Other income - assignment fee 2 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 3 (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

_____________

1General and administrative expense includes $(4.7) million and $(2.3) million and Losses from investments in securities include $(4.7) million and $(2.3) million for the three months ended June 30, 2022 and March 31, 2022, respectively, related to the Company’s deferred compensation plan.

2On April 7, 2022, the Company executed an agreement to assign its right to acquire 11251 Roger Bacon Drive to a third party for an assignment fee.

3For additional detail, see page 6.

Q2 2022
Funds from operations (FFO) 1

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

Three Months Ended
30-Jun-22 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 222,989 $ 143,047
Add:
Noncontrolling interest - common units of the Operating Partnership 25,708 16,361
Noncontrolling interests in property partnerships 18,546 17,549
Net income 267,243 176,957
Add:
Depreciation and amortization expense 183,146 177,624
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,414) (17,653)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 21,120 22,044
Corporate-related depreciation and amortization (413) (404)
Less:
Gains on sales of real estate 96,247 22,701
Noncontrolling interests in property partnerships 18,546 17,549
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 338,889 318,318
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 34,329 32,182
FFO attributable to Boston Properties, Inc. $ 304,560 $ 286,136
Boston Properties, Inc.’s percentage share of Basic FFO 89.87 % 89.89 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.13 % 10.11 %
Basic FFO per share $ 1.94 $ 1.83
Weighted average shares outstanding - basic 156,720 156,650
Diluted FFO per share $ 1.94 $ 1.82
Weighted average shares outstanding - diluted 157,192 157,004

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Jun-22 31-Mar-22
Basic FFO $ 338,889 $ 318,318
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 338,889 318,318
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 34,262 32,118
Boston Properties, Inc.’s share of Diluted FFO $ 304,627 $ 286,200

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Jun-22 31-Mar-22
Shares/units for Basic FFO 174,392 174,276
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 472 354
Shares/units for Diluted FFO 174,864 174,630
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,672 17,626
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,192 157,004
Boston Properties, Inc.’s percentage share of Diluted FFO 89.89 % 89.91 %

_____________

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

2For a quantitative reconciliation for the three months ended June 30, 2022, see page 33.

3For a quantitative reconciliation for the three months ended June 30, 2022, see page 36.

Q2 2022
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Jun-22 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 222,989 $ 143,047
Add:
Noncontrolling interest - common units of the Operating Partnership 25,708 16,361
Noncontrolling interests in property partnerships 18,546 17,549
Net income 267,243 176,957
Add:
Depreciation and amortization expense 183,146 177,624
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,414) (17,653)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 21,120 22,044
Corporate-related depreciation and amortization (413) (404)
Less:
Gains on sales of real estate 96,247 22,701
Noncontrolling interests in property partnerships 18,546 17,549
Basic FFO 338,889 318,318
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 4,539 (1,769)
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 891 889
Stock-based compensation 14,630 20,914
Non-real estate depreciation 413 404
Unearned portion of capitalized fees from consolidated joint ventures 6 1,013 593
Less:
BXP’s Share of straight-line rent 1 30,401 35,103
BXP’s Share of fair value lease revenue 1, 7 2,411 2,185
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 90,989 45,591
BXP’s Share of maintenance capital expenditures 1, 8 15,818 9,848
Hotel improvements, equipment upgrades and replacements 88 36
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 222,114 $ 248,032
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 171,531 $ 171,497
FAD Payout Ratio1 (B÷A) 77.23 % 69.14 %

_____________

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

2For a quantitative reconciliation for the three months ended June 30, 2022, see page 33.

3For a quantitative reconciliation for the three months ended June 30, 2022, see page 36.

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 2024 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 61 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 2022
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
30-Jun-22 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 222,989 $ 111,703
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 25,708 12,383
Noncontrolling interest in property partnerships 18,546 17,164
Net income 267,243 141,250
Add:
Interest expense 104,142 106,319
Depreciation and amortization expense 183,146 183,838
Transaction costs 496 751
Payroll and related costs from management services contracts 3,239 2,655
General and administrative expense 34,665 38,405
Less:
Other income - assignment fee 6,624 —
Interest and other income (loss) 1,195 1,452
Gains (losses) from investments in securities (4,716) 2,275
Gains on sales of real estate 96,247 7,756
Loss from unconsolidated joint ventures (54) (1,373)
Direct reimbursements of payroll and related costs from management services contracts 3,239 2,655
Development and management services revenue 6,354 7,284
Net Operating Income (NOI) 484,042 453,169
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 35,710 25,417
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 47,862 46,287
BXP’s Share of NOI 471,890 432,299
Less:
Termination income 1,922 5,355
BXP’s share of termination income from unconsolidated joint ventures 1 (1) 709
Add:
Partners’ share of termination income (loss) from consolidated joint ventures 2 641 (3)
BXP’s Share of NOI (excluding termination income) $ 470,610 $ 426,232
Net Operating Income (NOI) $ 484,042 $ 453,169
Less:
Termination income 1,922 5,355
NOI from non Same Properties (excluding termination income) 3 17,390 7,539
Same Property NOI (excluding termination income) 464,730 440,275
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 47,221 46,290
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 35,711 24,708
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 10,015 901
BXP’s Share of Same Property NOI (excluding termination income) $ 443,205 $ 417,792

_____________

1For a quantitative reconciliation for the three months ended June 30, 2022, see page 64.

2For a quantitative reconciliation for the three months ended June 30, 2022, see pages 61-62.

3Pages 21-24 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to June 30, 2022 and therefore are no longer a part of the Company’s property portfolio.

Q2 2022
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
30-Jun-22 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 222,989 $ 111,703
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 25,708 12,383
Noncontrolling interest in property partnerships 18,546 17,164
Net income 267,243 141,250
Add:
Interest expense 104,142 106,319
Depreciation and amortization expense 183,146 183,838
Transaction costs 496 751
Payroll and related costs from management services contracts 3,239 2,655
General and administrative expense 34,665 38,405
Less:
Other income - assignment fee 6,624 —
Interest and other income (loss) 1,195 1,452
Gains (losses) from investments in securities (4,716) 2,275
Gains on sales of real estate 96,247 7,756
Loss from unconsolidated joint ventures (54) (1,373)
Direct reimbursements of payroll and related costs from management services contracts 3,239 2,655
Development and management services revenue 6,354 7,284
Net Operating Income (NOI) 484,042 453,169
Less:
Straight-line rent 21,601 31,267
Fair value lease revenue 1,919 731
Termination income 1,922 5,355
Add:
Straight-line ground rent expense adjustment 1 631 567
Lease transaction costs that qualify as rent inducements 2 4,452 826
NOI - cash (excluding termination income) 463,683 417,209
Less:
NOI - cash from non Same Properties (excluding termination income) 3 12,800 7,134
Same Property NOI - cash (excluding termination income) 450,883 410,075
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 46,996 43,833
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 26,426 21,477
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 6,666 799
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 423,647 $ 386,920

_____________

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 $115 and $(103) for the three months ended June 30, 2022 and 2021, respectively. As of June 30, 2022, the Company has remaining lease payments aggregating approximately $25.3 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.

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 21-24 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, 2022 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended June 30, 2022, see page 62.

5For a quantitative reconciliation for the three months ended June 30, 2022, see page 64.

Q2 2022
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Jun-22 30-Jun-21 Change Change 30-Jun-22 30-Jun-21 Change Change
Rental Revenue 2 $ 710,306 $ 680,990 $ 29,001 $ 11,324
Less: Termination income 1,789 5,355 — —
Rental revenue (excluding termination income) 2 708,517 675,635 4.9 % 29,001 11,324 156.1 %
Less: Operating expenses and real estate taxes 256,526 238,760 17,766 7.4 % 16,262 7,924 8,338 105.2 %
NOI (excluding termination income) 2, 3 $ 451,991 $ 436,875 3.5 % $ 12,739 $ 3,400 274.7 %
Rental revenue (excluding termination income) 2 $ 708,517 $ 675,635 4.9 % $ 29,001 $ 11,324 156.1 %
Less: Straight-line rent and fair value lease revenue 18,869 31,573 (12,704) (40.2) % 61 20 41 205.0 %
Add: Lease transaction costs that qualify as rent inducements 4 4,493 826 3,667 443.9 % (41) — (41) (100.0) %
Subtotal 694,141 644,888 49,253 7.6 % 28,899 11,304 17,595 155.7 %
Less: Operating expenses and real estate taxes 256,526 238,760 17,766 7.4 % 16,262 7,924 8,338 105.2 %
Add: Straight-line ground rent expense 5 631 567 64 11.3 % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 438,246 $ 406,695 7.8 % $ 12,637 $ 3,380 273.9 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Jun-22 30-Jun-21 Change Change 30-Jun-22 30-Jun-21 Change Change
Rental Revenue 2 $ 739,307 $ 692,314 $ 43,647 $ 41,517
Less: Termination income 1,789 5,355 — 709
Rental revenue (excluding termination income) 2 737,518 686,959 7.4 % 43,647 40,808 7.0 %
Less: Operating expenses and real estate taxes 272,788 246,684 26,104 10.6 % 17,951 17,001 950 5.6 %
NOI (excluding termination income) 2, 3 $ 464,730 $ 440,275 5.6 % $ 25,696 $ 23,807 7.9 %
Rental revenue (excluding termination income) 2 $ 737,518 $ 686,959 7.4 % $ 43,647 $ 40,808 7.0 %
Less: Straight-line rent and fair value lease revenue 18,930 31,593 (12,663) (40.1) % 6,202 2,732 3,470 127.0 %
Add: Lease transaction costs that qualify as rent inducements 4 4,452 826 3,626 439.0 % 121 (631) 752 119.2 %
Subtotal $ 723,040 $ 656,192 66,848 10.2 % 37,566 37,445 121 0.3 %
Less: Operating expenses and real estate taxes 272,788 246,684 26,104 10.6 % 17,951 17,001 950 5.6 %
Add: Straight-line ground rent expense 5 631 567 64 11.3 % 145 234 (89) (38.0) %
NOI - cash (excluding termination income) 2, 3 $ 450,883 $ 410,075 10.0 % $ 19,760 $ 20,678 (4.4) %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7
Three Months Ended % Three Months Ended %
30-Jun-22 30-Jun-21 Change Change 30-Jun-22 30-Jun-21 Change Change
Rental Revenue 2 $ 77,142 $ 73,473 $ 705,812 $ 660,358
Less: Termination income 641 (3) 1,148 6,067
Rental revenue (excluding termination income) 2 76,501 73,476 4.1 % 704,664 654,291 7.7 %
Less: Operating expenses and real estate taxes 29,280 27,186 2,094 7.7 % 261,459 236,499 24,960 10.6 %
NOI (excluding termination income) 2, 3 $ 47,221 $ 46,290 2.0 % $ 443,205 $ 417,792 6.1 %
Rental revenue (excluding termination income) 2 $ 76,501 $ 73,476 4.1 % $ 704,664 $ 654,291 7.7 %
Less: Straight-line rent and fair value lease revenue 225 2,784 (2,559) (91.9) % 24,907 31,541 (6,634) (21.0) %
Add: Lease transaction costs that qualify as rent inducements 4 — 327 (327) (100.0) % 4,573 (132) 4,705 3,564.4 %
Subtotal 76,276 71,019 5,257 7.4 % 684,330 622,618 61,712 9.9 %
Less: Operating expenses and real estate taxes 29,280 27,186 2,094 7.7 % 261,459 236,499 24,960 10.6 %
Add: Straight-line ground rent expense 5 — — — — % 776 801 (25) (3.1) %
NOI - cash (excluding termination income) 2, 3 $ 46,996 $ 43,833 7.2 % $ 423,647 $ 386,920 9.5 %

All values are in US Dollars.

___________________

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

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

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

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

5Excludes the straight-line impact of approximately $115 and $(103) for the three months ended June 30, 2022 and 2021, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

Q2 2022
Same property net operating income (NOI) by reportable segment (continued)

6BXP’s Share equals (A) + (B) - (C).

7BXP’s Share of Same Store NOI-cash (excluding termination income) increased $36,727, compared to Q2 2021. Included in Q2 2021 is BXP’s Share of $319 of write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $6,116 in Q2 2022 compared to Q2 2021. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $6,435.

Q2 2022
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Jun-22 31-Mar-22
Maintenance capital expenditures $ 16,256 $ 10,652
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures 17,779 6,243
Hotel improvements, equipment upgrades and replacements 88 36
Subtotal 34,123 16,931
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 1,022 719
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 425 —
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 1,460 1,523
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 6,438 2,223
BXP’s Share of Capital Expenditures 1 $ 27,672 $ 13,904

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Jun-22 31-Mar-22
Square feet 1,932,249 1,057,074
Tenant improvements and lease commissions PSF $ 71.73 $ 54.99

___________________

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

2Includes 100% of unconsolidated joint ventures.

Q2 2022
Acquisitions and dispositions

For the period from January 1, 2022 through June 30, 2022

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
Madison Centre Seattle, WA May 17, 2022 754,988 $ 730,000 $ — $ 730,000 92.7 %
Total Acquisitions 754,988 $ 730,000 $ — $ 730,000 92.7 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain 1
195 West Street Waltham, MA March 31, 2022 63,500 $ 37,700 $ 35,397 $ 22,701
Virginia 95 Office Park Springfield, VA June 15, 2022 733,421 127,000 121,948 96,160
Total Dispositions 796,921 $ 164,700 $ 157,345 $ 118,861

___________________

1Excludes approximately $0.1 million of gains on sales of real estate recognized during the six months ended June 30, 2022 related to gain amounts from sales of real estate occurring in prior periods.

Q2 2022
Construction in progress

as of June 30, 2022

(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 6/30/2022 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
Reston Next Q4 2021 Q4 2023 Reston, VA 1,062,000 $ 554,408 $ 715,300 $ — $ — $ 160,892 87 % 69 % $ 5,171
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 480,000 273,011 356,100 — — 83,089 61 % 4 % (8)
360 Park Avenue South (42% ownership) 6 Q3 2023 Q1 2025 New York, NY 450,000 197,862 219,000 92,774 86,245 14,609 — % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 7,185 61,000 — — 53,815 — % — % N/A
Platform16 Building A (55% ownership) 7 Q2 2025 Q4 2026 San Jose, CA 389,500 71,672 231,900 — — 160,228 — % — % N/A
Total Office Properties under Construction 2,471,500 1,104,138 1,583,300 92,774 86,245 472,633 49 % 30 % 5,163
Lab/Life Sciences
880 Winter Street (Redevelopment) Q4 2022 Q1 2023 Waltham, MA 244,000 78,560 108,000 — — 29,440 97 % — % N/A
751 Gateway (49% ownership) Q2 2024 Q2 2024 South San Francisco, CA 231,000 67,168 127,600 — — 60,432 100 % — % N/A
103 CityPoint Q4 2023 Q3 2024 Waltham, MA 113,000 21,588 115,100 — — 93,512 — % — % N/A
180 CityPoint Q4 2023 Q4 2024 Waltham, MA 329,000 91,255 274,700 — — 183,445 43 % — % N/A
651 Gateway (50% ownership) (Redevelopment) Q4 2023 Q4 2025 South San Francisco, CA 327,000 12,782 146,500 — — 133,718 — % — % N/A
Total Lab/Life Sciences Properties under Construction 1,244,000 271,353 771,900 — — 500,547 49 % — % —
Residential
Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 11,368 47,700 28,000 — 8,332 — % — % N/A
Total Residential Property under Construction 417,000 11,368 47,700 28,000 — 8,332 — % — % N/A
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 109,624 182,300 — — 72,676 N/A — % N/A
Total Properties Under Construction 4,191,500 $ 1,496,483 $ 2,585,200 $ 120,774 $ 86,245 $ 1,054,188 49 % 8 18 % $ 5,163

PROJECTS FULLY PLACED IN-SERVICE DURING 2022

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 6/30/2022 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5 (BXP’s Share)
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
325 Main Street Q2 2022 Q2 2022 Cambridge, MA 414,008 $ 343,587 $ 418,400 $ — $ — $ 74,813 92 % $ 203
Total Projects Fully Placed In-Service 414,008 $ 343,587 $ 418,400 $ — $ — $ 74,813 92 % $ 203

________________

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 22, 2022, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended June 30, 2022. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 55.

Q2 2022
Construction in progress (continued)

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

7Estimated total investment represents the costs to complete Building A, a 389,500 square foot building, and Building A’s proportionate share of land and garage costs. In conjunction with the construction of Building A, garage and site work will be completed for Phase II, which will support approximately 700,000 square feet of development in two office buildings, budgeted to be an incremental $141 million.

8Total percentage leased excludes Residential and Other.

Q2 2022
Land parcels and purchase options

as of June 30, 2022

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,229,400
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Francisco, CA 850,000
San Jose, CA (55% Ownership) 698,000
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
Dulles, VA 310,000
El Segundo, CA (50% Ownership) 275,000
Lexington, MA 3 259,000
Rockville, MD 3, 4 202,000
Total 13,062,400

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

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

__________________

1Represents 100% of consolidated and unconsolidated projects.

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

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 21-24.

4Includes three buildings that are currently vacant at Shady Grove Innovation District in Rockville, Maryland. The Company intends to reposition these three vacant buildings, totaling 202,000 square feet, to support life science uses. These three buildings are not included in the Company’s in-service portfolio.

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

Q2 2022
Leasing activity

for the three months ended June 30, 2022

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,143,538
Less:
Property dispositions/properties taken out of service 1 185,298
Add:
Properties acquired vacant space 2 77,581
Properties placed (and partially placed) in-service 3 420,553
Leases expiring or terminated during the period 1,918,961
Total space available for lease 7,375,335
1st generation leases 423,150
2nd generation leases with new clients 887,859
2nd generation lease renewals 1,044,390
Total space leased 2,355,399
Vacant space available for lease at the end of the period 5,019,936
Net (increase)/decrease in available space 123,602
Second generation leasing information: 4
Leases commencing during the period (SF) 1,932,249
Weighted average lease term (months) 111
Weighted average free rent period (days) 92
Total transaction costs per square foot 5 71.73
Increase (decrease) in gross rents 6 9.62
Increase (decrease) in net rents 7 14.73

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 9
1st generation 2nd generation total 8 gross 6 net 6
Boston 416,605 1,160,847 1,577,452 14.59 % 23.70 % 1,310,383
Los Angeles — 113,758 113,758 24.83 % 24.89 % 5,599
New York — 165,627 165,627 (11.48) % (17.26) % 293,590
San Francisco — 136,226 136,226 14.93 % 21.05 % 175,340
Seattle — 66,324 66,324 41.84 % 53.73 % 66,483
Washington, DC 6,545 289,467 296,012 (11.05) % (16.03) % 81,484
Total / Weighted Average 423,150 1,932,249 2,355,399 9.62 % 14.73 % 1,932,879

_____________

1Total vacant square feet of properties taken out of service in Q2 2022 consists of 185,298 at Virginia 95 Office Park.

2Total vacant square feet of properties acquired in Q2 2022 consists of 77,581 at Madison Centre.

3Total square feet of properties placed (and partially placed) in-service in Q2 2022 consists of 6,545 at 2100 Pennsylvania Avenue and 414,008 at 325 Main Street.

4Second generation leases are defined as leases for space that have previously been leased. Of the 1,932,249 square feet of second generation leases that commenced in Q2 2022, leases for 1,689,245 square feet were signed in prior periods.

5Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.

6Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 1,565,183 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

7Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,565,183 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.

8Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.

9Represents 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 243,004.

Q2 2022
Portfolio overview

for the three months ended June 30, 2022

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,480,717 1,093,512 550,114 330,000 16,454,343
Los Angeles 2,186,511 126,377 — — 2,312,888
New York 11,336,578 417,849 — — 11,754,427
San Francisco 6,995,157 351,284 318,171 — 7,664,612
Seattle 1,506,503 26,472 — — 1,532,975
Washington, DC 8,292,309 666,375 822,436 — 9,781,120
Total 44,797,775 2,681,869 1,690,721 330,000 49,500,365
% of Total 90.50 % 5.42 % 3.41 % 0.67 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 682,686 $ 53,474 $ 16,178 $ 11,996 $ 764,334
Less:
Partners’ share from consolidated joint ventures 4 67,854 9,288 — — 77,142
Add:
BXP’s share from unconsolidated joint ventures 5 51,659 2,205 2,496 — 56,360
BXP’s Share of Rental revenue 1 $ 666,491 $ 46,391 $ 18,674 $ 11,996 $ 743,552
% of Total 89.64 % 6.24 % 2.51 % 1.61 % 100.00 %

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

CBD Suburban Total
Boston 27.91 % 6.62 % 34.53 %
Los Angeles 2.81 % — % 2.81 %
New York 23.72 % 2.08 % 25.80 %
San Francisco 17.31 % 2.32 % 19.63 %
Seattle 1.40 % — % 1.40 %
Washington, DC 4.82 % 11.01 % 15.83 %
Total 77.97 % 22.03 % 100.00 %

_____________

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

2Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 21-24.

3Excludes approximately $93 of revenue from retail clients that is included in Retail.

4See page 62 for additional information.

5See page 64 for additional information.

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

Q2 2022
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
30-Jun-22 31-Mar-22 30-Jun-22 31-Mar-22
Rental Revenue 2 $ 16,912 $ 12,966 $ 12,089 $ 4,557
Less: Operating expenses and real estate taxes 9,818 6,432 6,444 4,840
Net Operating Income (NOI) 2 7,094 6,534 5,645 (283)
Add: BXP’s share of NOI from unconsolidated joint ventures 1,590 1,647 N/A N/A
BXP’s Share of NOI 2 $ 8,684 $ 8,181 $ 5,645 $ (283)
Rental Revenue 2 $ 16,912 $ 12,966 $ 12,089 $ 4,557
Less: Straight line rent and fair value lease revenue 59 54 2 2
Add: Lease transaction costs that qualify as rent inducements (41) — — —
Subtotal 16,812 12,912 12,087 4,555
Less: Operating expenses and real estate taxes 9,818 6,432 6,444 4,840
NOI - cash basis 2 6,994 6,480 5,643 (285)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,590 1,647 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 8,584 $ 8,127 $ 5,643 $ (285)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-22 30-Jun-21
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 3,957 $ 3,039 30.21 %
Average Rental Rate Per Occupied Square Foot $ 5.45 $ 4.25 28.24 %
Average Physical Occupancy 95.61 % 71.74 % 33.27 %
Average Economic Occupancy 94.81 % 63.50 % 49.31 %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 2,774 $ 2,504 10.78 %
Average Rental Rate Per Occupied Square Foot $ 5.11 $ 4.60 11.09 %
Average Physical Occupancy 95.24 % 91.67 % 3.89 %
Average Economic Occupancy 94.28 % 90.21 % 4.51 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,097 $ 3,156 29.82 %
Average Rental Rate Per Occupied Square Foot $ 4.57 $ 3.51 30.20 %
Average Physical Occupancy 97.67 % 96.12 % 1.61 %
Average Economic Occupancy 97.10 % 93.67 % 3.66 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 69.60 % 21.70 % 220.74 %
Average Daily Rate $ 368.52 $ 160.96 128.95 %
Revenue Per Available Room $ 256.47 $ 34.86 635.71 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 4 402
Average Monthly Rental Rate $ 3,391 $ 3,183 6.53 %
Average Rental Rate Per Occupied Square Foot $ 4.15 $ 3.79 9.50 %
Average Physical Occupancy 83.83 % 26.53 % 215.98 %
Average Economic Occupancy 81.73 % 18.71 % 336.83 %
Q2 2022
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Jun-22 30-Jun-21
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,683 $ 2,143 25.20 %
Average Rental Rate Per Occupied Square Foot $ 2.77 $ 2.22 24.77 %
Average Physical Occupancy 95.14 % 87.20 % 9.11 %
Average Economic Occupancy 94.78 % 83.13 % 14.01 %
The Avant at Reston Town Center, Reston, VA 2, 3 359
Average Monthly Rental Rate $ 2,411 $ 2,180 10.60 %
Average Rental Rate Per Occupied Square Foot $ 2.61 $ 2.38 9.66 %
Average Physical Occupancy 96.01 % 94.99 % 1.07 %
Average Economic Occupancy 96.40 % 94.26 % 2.27 %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

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

3Excludes retail space.

4This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.

Q2 2022
In-service property listing as of June 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,768,775 94.8 % $ 78.21
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,821 97.1 % 73.20
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,798 90.6 % 70.30
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,456 95.2 % 74.22
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,819 99.8 % 82.71
100 Causeway Street (50% ownership) 3, 4 CBD Boston MA 1 633,819 94.6 % 75.05
Prudential Center (retail shops) 5, 6 CBD Boston MA 1 597,478 76.3 % 98.32
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 58.13
The Hub on Causeway - Podium (50% ownership) 3 CBD Boston MA 1 382,497 80.8 % 72.88
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 78.95
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 61.36
Subtotal 11 8,400,495 93.7 % $ 75.79
145 Broadway East Cambridge MA 1 490,086 99.8 % $ 87.82
325 Main Street 4 East Cambridge MA 1 414,008 91.6 % 101.40
355 Main Street East Cambridge MA 1 259,640 99.3 % 79.85
90 Broadway East Cambridge MA 1 223,771 98.1 % 75.72
255 Main Street East Cambridge MA 1 215,394 97.5 % 91.56
300 Binney Street East Cambridge MA 1 195,191 100.0 % 60.03
150 Broadway East Cambridge MA 1 177,226 100.0 % 84.14
105 Broadway East Cambridge MA 1 152,664 100.0 % 71.33
250 Binney Street East Cambridge MA 1 67,362 100.0 % 48.55
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.47
Subtotal 10 2,390,624 98.0 % $ 80.85
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 989,548 65.7 % $ 44.65
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 79.1 % 39.75
140 Kendrick Street Route 128 Mass Turnpike MA 3 388,193 99.4 % 45.27
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 57.64
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 86.7 % 38.83
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 95.6 % 43.88
200 West Street 4 Route 128 Mass Turnpike MA 1 273,365 83.9 % 67.89
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 53.48
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 54.64
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 98.3 % 45.62
890 Winter Street Route 128 Mass Turnpike MA 1 177,902 43.8 % 45.84
153 & 211 Second Avenue 4 Route 128 Mass Turnpike MA 2 136,882 100.0 % 55.56
1265 Main Street (50% ownership) 3 Route 128 Mass Turnpike MA 1 120,681 100.0 % 40.00
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 46.12
The Point 5 Route 128 Mass Turnpike MA 1 16,300 100.0 % 57.18
Lexington Office Park 7 Route 128 Northwest MA 2 166,779 50.6 % 29.42
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 67.45
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.71
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 63.75
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 46.46
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 51.30
Subtotal 28 4,754,707 84.4 % $ 47.89
Boston Office Total: 49 15,545,826 91.5 % $ 68.71
Residential
Hub50House (440 units) (50% ownership) 3 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,096
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,257 Q2 2022
--- ---
In-service property listing (continued) as of June 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 53 16,454,343
LOS ANGELES
Office
Colorado Center (50% ownership) 3 West Los Angeles CA 6 1,131,511 89.5 % $ 68.54
Santa Monica Business Park (55% ownership) 3 West Los Angeles CA 14 1,106,973 97.2 % 63.72
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 97.7 % 69.20
Subtotal 27 2,312,888 93.4 % $ 66.17
Los Angeles Total: 27 2,312,888 93.4 % $ 66.17
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,962,886 90.9 % $ 160.19
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,671,749 95.8 % 98.52
399 Park Avenue Park Avenue NY 1 1,577,544 96.8 % 98.54
599 Lexington Avenue Park Avenue NY 1 1,062,708 99.8 % 93.51
Times Square Tower (55% ownership) Times Square NY 1 1,225,448 85.7 % 80.00
250 West 55th Street Times Square / West Side NY 1 966,979 100.0 % 100.61
Dock 72 (50% ownership) 3 Brooklyn NY 1 668,625 33.1 % 60.83
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 91.9 % 137.27
Subtotal 8 9,491,028 90.0 % $ 109.25
510 Carnegie Center Princeton NJ 1 234,160 33.5 % $ 37.53
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 35.33
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.74
212 Carnegie Center Princeton NJ 1 151,355 41.9 % 38.52
214 Carnegie Center Princeton NJ 1 146,799 65.9 % 36.28
506 Carnegie Center Princeton NJ 1 138,616 68.4 % 38.18
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 41.39
202 Carnegie Center Princeton NJ 1 134,068 91.2 % 39.29
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.19
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.32
101 Carnegie Center Princeton NJ 1 121,620 95.3 % 38.61
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 39.11
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.27
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 39.03
103 Carnegie Center Princeton NJ 1 96,331 78.3 % 35.28
105 Carnegie Center Princeton NJ 1 69,955 50.2 % 35.42
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 35.37
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 36.96
201 Carnegie Center Princeton NJ — 6,500 100.0 % 33.44
Subtotal 18 2,263,399 78.5 % $ 38.18
New York Total: 26 11,754,427 87.8 % $ 97.00
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 107.81
Embarcadero Center Four CBD San Francisco CA 1 940,874 92.7 % 86.46
Embarcadero Center One CBD San Francisco CA 1 832,420 70.1 % 86.01
Embarcadero Center Two CBD San Francisco CA 1 801,378 87.0 % 82.48
Embarcadero Center Three CBD San Francisco CA 1 786,864 85.8 % 85.98
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 72.36 Q2 2022
--- ---
In-service property listing (continued) as of June 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
535 Mission Street CBD San Francisco CA 1 307,235 90.1 % 90.02
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 66.89
Subtotal 9 5,640,326 89.9 % $ 90.45
Gateway Commons (50% ownership) 3 South San Francisco CA 5 787,981 78.8 % $ 62.88
Mountain View Research Park Mountain View CA 15 542,264 74.0 % 70.59
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 88.49
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 51.69
North First Business Park 7 San Jose CA 5 190,636 58.3 % 24.14
Subtotal 27 1,693,290 76.7 % $ 64.60
San Francisco Office Total: 36 7,333,616 86.9 % $ 85.17
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 37 7,664,612
SEATTLE
Office
Safeco Plaza (33.67% ownership) 3, 4 CBD Seattle WA 1 777,987 85.6 % $ 42.99
Madison Centre 4 CBD Seattle WA 1 754,988 92.7 % 59.23
Subtotal 2 1,532,975 89.1 % $ 51.33
Seattle Total: 2 1,532,975 89.1 % $ 51.33
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 3 East End Washington DC 1 657,481 67.8 % $ 69.25
901 New York Avenue (25% ownership) 3 East End Washington DC 1 543,017 73.7 % 68.04
601 Massachusetts Avenue East End Washington DC 1 478,667 98.9 % 85.85
Market Square North (50% ownership) 3 East End Washington DC 1 417,982 76.1 % 71.18
2200 Pennsylvania Avenue CBD Washington DC 1 459,667 97.3 % 95.93
1330 Connecticut Avenue CBD Washington DC 1 253,579 92.1 % 71.02
Sumner Square CBD Washington DC 1 209,556 98.1 % 55.41
500 North Capitol Street, N.W. (30% ownership) 3 Capitol Hill Washington DC 1 230,900 98.5 % 80.97
Capital Gallery Southwest Washington DC 1 176,809 97.1 % 54.74
Subtotal 9 3,427,658 85.3 % $ 75.13
South of Market Reston VA 3 623,250 99.6 % $ 54.97
Fountain Square Reston VA 2 525,073 88.7 % 49.73
One Freedom Square Reston VA 1 428,400 80.2 % 45.89
Two Freedom Square Reston VA 1 423,222 100.0 % 49.25
One and Two Discovery Square Reston VA 2 366,989 99.0 % 50.12
One Reston Overlook Reston VA 1 319,519 97.8 % 47.19
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 68.27
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.20
Democracy Tower Reston VA 1 259,441 99.3 % 62.61
Fountain Square Retail 5 Reston VA 1 198,158 79.4 % 44.86
Two Reston Overlook Reston VA 1 134,615 100.0 % 49.84
Subtotal 16 3,815,522 94.8 % $ 51.97
7750 Wisconsin Avenue (50% ownership) 3, 4 Bethesda/Chevy Chase MD 1 735,573 100.0 % $ 38.00
Wisconsin Place Office Montgomery County MD 1 299,248 89.9 % 60.11
Shady Grove Innovation District 4, 7 North Rockville MD 4 232,278 65.2 % 18.11
Kingstowne Two Springfield VA 1 155,995 83.7 % 39.00
Kingstowne One Springfield VA 1 153,401 36.9 % 40.31 Q2 2022
--- ---
In-service property listing (continued) as of June 30, 2022
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
Kingstowne Retail 5 Springfield VA 1 88,288 96.8 % 46.68
Subtotal 9 1,664,783 85.8 % $ 40.76
Washington, DC Office Total: 34 8,907,963 89.4 % $ 58.41
Residential
Signature at Reston (508 units) Reston VA 1 517,783
The Avant at Reston Town Center (359 units) Reston VA 1 355,374
Washington, DC Residential Total: 2 873,157
Washington, DC Total: 36 9,781,120
Total In-Service Properties: 181 49,500,365 89.5 % 8 $ 75.44 8

_____________

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

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

3This is an unconsolidated joint venture property.

4Not included in the Same Property analysis.

5This is a retail property.

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

7Property held for redevelopment.

8Excludes Hotel and Residential properties. For additional detail, see pages 19-20.

Q2 2022
Top 20 clients listing and portfolio client diversification

as of June 30, 2022

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.46 % 9.6
2 Google 2.77 % 15.0
3 Arnold & Porter Kaye Scholer 2.48 % 11.8
4 Akamai Technologies 2.13 % 12.3
5 Biogen 1.72 % 4.4
6 Shearman & Sterling 1.53 % 11.4
7 WeWork 1.53 % 11.0
8 Kirkland & Ellis 1.48 % 15.4
9 Ropes & Gray 1.47 % 7.9
10 Microsoft 1.28 % 9.8
11 Millennium Management 1.16 % 8.5
12 Wellington Management 1.15 % 10.9
13 Weil Gotshal & Manges 1.13 % 11.9
14 Aramis (Estee Lauder) 0.98 % 15.2
15 Fannie Mae 0.95 % 15.2
16 Bank of America 0.94 % 13.6
17 Morrison & Foerster 0.88 % 8.2
18 Snap 0.88 % 3.6
19 O'Melveny & Myers 0.84 % 2.4
20 Mass Financial Services 0.84 % 5.7
BXP’s Share of Annualized Rental Obligations 29.61 %
BXP’s Share of Square Feet 1 24.65 %
Weighted Average Remaining Lease Term (years) 10.6

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 4 290 Binney Street 4 570,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Genentech 751 Gateway 229,000
Volkswagen Group of America Reston Next 196,000

CLIENT DIVERSIFICATION 2

chart-60ace2d1f32148869d0.jpg

_____________

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

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

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

4290 Binney Street is a future development project in Cambridge, MA. The lease and the commencement of development are subject to various conditions, some of which are not within BXP’s control.

Q2 2022
Occupancy by location

as of June 30, 2022

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

CBD Suburban Total
Location 30-Jun-22 31-Mar-22 30-Jun-22 31-Mar-22 30-Jun-22 31-Mar-22
Boston 94.6 % 94.8 % 84.4 % 85.4 % 91.5 % 91.8 %
Los Angeles 93.4 % 88.4 % — % — % 93.4 % 88.4 %
New York 90.0 % 89.7 % 78.5 % 78.2 % 87.8 % 87.5 %
San Francisco 89.9 % 91.2 % 76.7 % 76.4 % 86.9 % 87.8 %
Seattle 89.1 % 87.7 % — % — % 89.1 % 87.7 %
Washington, DC 85.3 % 84.6 % 92.0 % 90.0 % 89.4 % 88.1 %
Total Portfolio 91.2 % 90.9 % 85.5 % 85.2 % 89.5 % 89.1 %

chart-ce0e50fb0511448c894.jpg

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

CBD Suburban Total
Location 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21 30-Jun-22 30-Jun-21
Boston 94.8 % 95.5 % 83.4 % 86.4 % 91.2 % 92.6 %
Los Angeles 93.4 % 83.9 % — % — % 93.4 % 83.9 %
New York 90.0 % 89.7 % 78.5 % 76.7 % 87.8 % 87.2 %
San Francisco 89.9 % 92.5 % 76.7 % 74.4 % 86.9 % 88.4 %
Seattle — % — % — % — % — % — %
Washington, DC 85.3 % 83.6 % 92.1 % 88.0 % 89.2 % 86.1 %
Total Portfolio 91.2 % 90.9 % 84.7 % 83.7 % 89.3 % 88.8 %

chart-3f4e5c8deaf94bb8b73.jpg

_____________

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

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

Q2 2022
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit 165,000
Unsecured Term Loan 730,000
Unsecured Senior Notes, at face value 9,550,000
Outstanding Principal 13,745,000
Discount on Unsecured Senior Notes (15,116)
Deferred Financing Costs, Net (77,111)
Consolidated Debt $ 13,652,773

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
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
$ 9,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,726 156,726 $ 13,945,479
Common Operating Partnership Units 18,225 18,225 1,621,661
Total Equity 174,951 $ 15,567,140
Consolidated Debt (A) $ 13,652,773
Add: BXP’s share of unconsolidated joint venture debt 3 1,446,617
Less: Partners’ share of consolidated debt 4 1,357,399
BXP’s Share of Debt 5 (B) $ 13,741,991
Consolidated Market Capitalization (C) $ 29,219,913
BXP’s Share of Market Capitalization 5 (D) $ 29,309,131
Consolidated Debt/Consolidated Market Capitalization (A÷C) 46.72 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 46.89 %

_____________

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

2Values are based on the June 30, 2022 closing price of $88.98 per share of BXP common stock.

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

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

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

Q2 2022
Debt analysis 1

as of June 30, 2022

(dollars in thousands)

chart-c26449c876d5432ab80.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at June 30, 2022 Letters of Credit Remaining Capacity at June 30, 2022
Unsecured Line of Credit $ 1,500,000 $ 165,000 $ 6,348 $ 1,328,652

UNSECURED TERM LOAN - MATURES MAY 16, 2023

Facility Outstanding at June 30, 2022
Unsecured Term Loan $ 730,000 $ 730,000

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 76.05 % 3.23 % 3.36 % 5.7
Secured Debt 23.95 % 3.24 % 3.42 % 6.3
Consolidated Debt 100.00 % 3.23 % 3.37 % 5.8

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt 6.55 % 1.96 % 2.53 % 1.4
Fixed Rate Debt 93.45 % 3.32 % 3.43 % 6.1
Consolidated Debt 100.00 % 3.23 % 3.37 % 5.8

_____________

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

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

Q2 2022
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, 2022 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 46.5 % 42.9 %
Secured Debt/Total Assets Less than 50% 15.1 % 13.9 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.38 4.38
Unencumbered Assets/ Unsecured Debt Greater than 150% 244.2 % 268.8 %

_____________

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 2022
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-22 31-Mar-22
Net income attributable to Boston Properties, Inc. $ 222,989 $ 143,047
Add:
Noncontrolling interest - common units of the Operating Partnership 25,708 16,361
Noncontrolling interest in property partnerships 18,546 17,549
Net income 267,243 176,957
Add:
Interest expense 104,142 101,228
Losses from early extinguishments of debt — —
Depreciation and amortization expense 183,146 177,624
Less:
Gains on sales of real estate 96,247 22,701
Income (loss) from unconsolidated joint ventures (54) 2,189
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 35,401 37,744
EBITDAre 1 493,739 468,663
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 47,810 46,946
BXP’s Share of EBITDAre 1 (A) 445,929 421,717
Add:
Stock-based compensation expense 14,630 20,914
BXP’s Share of straight-line ground rent expense adjustment 1 891 889
BXP’s Share of lease transaction costs that qualify as rent inducements 1 4,539 (1,769)
Less:
BXP’s Share of straight-line rent 1 30,401 35,103
BXP’s Share of fair value lease revenue 1 2,411 2,185
Non-cash losses from early extinguishments of debt — —
BXP’s Share of EBITDAre – cash 1 $ 433,177 $ 404,463
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,783,716 $ 1,686,868

Reconciliation of BXP’s Share of Net Debt 1

30-Jun-22 31-Mar-22
Consolidated debt $ 13,652,773 $ 13,010,124
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 456,491 436,271
Cash held in escrow for 1031 exchange — —
Net debt 1 13,196,282 12,573,853
Add:
BXP’s share of unconsolidated joint venture debt 2 1,446,617 1,425,290
Partners’ share of cash and cash equivalents from consolidated joint ventures 126,387 113,172
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 110,006 99,379
Partners’ share of consolidated joint venture debt 3 1,357,399 1,356,905
BXP’s Share of Net Debt 1 (B) $ 13,301,881 $ 12,656,031
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.46 7.50

_____________

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

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended June 30, 2022, see pages 34 and 63.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended June 30, 2022, see pages 32 and 61.

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

Q2 2022
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Jun-22 31-Mar-22
BXP’s Share of interest expense 1 $ 106,627 $ 102,730
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 4,419 3,952
Adjusted interest expense excluding capitalized interest (A) 100,762 97,332
Add:
BXP’s Share of capitalized interest 1 14,679 15,009
Adjusted interest expense including capitalized interest (B) $ 115,441 $ 112,341
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 433,177 $ 404,463
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 4.30 4.16
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.75 3.60

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Jun-22 31-Mar-22
BXP’s Share of interest expense 1 $ 106,627 $ 102,730
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 4,419 3,952
Add:
BXP’s Share of capitalized interest 1 14,679 15,009
BXP’s Share of maintenance capital expenditures 1 15,818 9,848
Hotel improvements, equipment upgrades and replacements 88 36
Total Fixed Charges (A) $ 131,347 $ 122,225
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 433,177 $ 404,463
Fixed Charge Coverage Ratio (B÷A) 3.30 3.31

_____________

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

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

Q2 2022
Consolidated joint ventures

d

as of June 30, 2022

(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 $ 3,199,396 $ 2,253,376 $ 5,452,772
Cash and cash equivalents 150,735 146,873 297,608
Other assets 279,264 353,226 632,490
Total assets $ 3,629,395 $ 2,753,475 $ 6,382,870
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,282,734 $ 987,185 $ 3,269,919
Other liabilities 99,207 84,608 183,815
Total liabilities 2,381,941 1,071,793 3,453,734
Equity:
Boston Properties, Inc. 750,046 626,263 1,376,309
Noncontrolling interests 497,408 1,055,419 1,552,827 2
Total equity 1,247,454 1,681,682 2,929,136
Total liabilities and equity $ 3,629,395 $ 2,753,475 $ 6,382,870
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 60,294 $ 66,093 $ 126,387
Partners’ share of consolidated debt 3 $ 913,166 4 $ 444,233 $ 1,357,399

_____________

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 2022
Consolidated joint ventures (continued)

for the three months ended June 30, 2022

(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 $ 75,997 $ 100,569 $ 176,566
Straight-line rent (1,875) 1,852 (23)
Fair value lease revenue 327 24 351
Termination income 1,603 — 1,603
Total lease revenue 76,052 102,445 178,497
Parking and other — 1,380 1,380
Total rental revenue 2 76,052 103,825 179,877
Expenses
Operating 28,837 36,044 64,881
Net Operating Income (NOI) 47,215 67,781 114,996
Other income (expense)
Interest and other income 22 (91) (69)
Interest expense (21,018) (7,658) (28,676)
Depreciation and amortization expense (16,057) (22,998) (39,055)
General and administrative expense (34) (119) (153)
Total other income (expense) (37,087) (30,866) (67,953)
Net income $ 10,128 $ 36,915 $ 47,043

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 $ 10,128 $ 36,915 $ 47,043
Add: Depreciation and amortization expense 16,057 22,998 39,055
Entity FFO $ 26,185 $ 59,913 $ 86,098
Partners’ NCI 3 $ 3,011 $ 15,535 $ 18,546
Partners’ share of depreciation and amortization expense after BXP’s basis differential 3 6,771 10,643 17,414
Partners’ share FFO 3 $ 9,782 $ 26,178 $ 35,960
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,117 $ 21,380 $ 28,497
Depreciation and amortization expense - BXP’s basis difference 42 394 436
BXP’s share of depreciation and amortization expense 9,244 11,961 21,205
BXP’s share of FFO $ 16,403 $ 33,735 $ 50,138

_____________

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 55.

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 2022
Unconsolidated joint ventures 1

as of June 30, 2022

(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 Street 50.00 % 59,425 168,308 September 5, 2023 2.27 % 2.48 %
Podium 50.00 % 49,403 86,991 September 6, 2023 3.28 % 3.44 %
Hub50House 50.00 % 42,019 91,818 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 11,974 — — — % — %
1265 Main Street 50.00 % 3,234 17,885 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 163,888 164,114 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 233,026 274,554 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 27,045 — — — % — %
New York
Dock 72 3 50.00 % 29,795 98,789 December 18, 2023 3.76 % 3.98 %
360 Park Avenue South 4 42.21 % 111,209 85,295 December 14, 2024 3.11 % 3.57 %
3 Hudson Boulevard 5 25.00 % 116,388 19,984 July 13, 2023 4.31 % 4.39 %
San Francisco
Platform 16 55.00 % 132,845 — — — % — %
Gateway Commons 50.00 % 305,236 — — — % — %
751 Gateway 49.00 % 56,477 — — — % — %
Seattle
Safeco Plaza 33.67 % 71,630 83,698 September 1, 2026 2.97 % 3.11 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 54,589 125,191 April 26, 2023 1.96 % 2.51 %
1001 6th Street 50.00 % 42,691 — — — % — %
Market Square North 50.00 % (4,801) 62,153 November 10, 2025 3.15 % 3.31 %
Wisconsin Place Parking Facility 33.33 % 32,980 — — — % — %
500 North Capitol Street, N.W. 30.00 % (9,015) 31,484 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,542) 53,511 January 5, 2025 3.61 % 3.69 %
Reston Next Residential 6, 7 20.00 % 11,140 — May 13, 2026 N/A N/A
Metropolitan Square 20.00 % (38,503) 82,842 April 9, 2024 3.61 % 4.38 %
1,490,133
Investments with deficit balances reflected within Other Liabilities 64,861
Investments in Unconsolidated Joint Ventures $ 1,554,994
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,446,617

chart-e8ac3597e3c44a408af.jpg

Q2 2022
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 56.22 % 2.93 % 3.25 % 1.8
Fixed Rate Debt 43.78 % 3.86 % 3.94 % 5.0
Total Debt 100.00 % 3.33 % 3.55 % 3.2

_____________

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

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

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

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

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

6 The Company’s partner will fund required capital until their aggregate investment is approximately 80% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests.

7 No amounts have been drawn under the $140.0 million construction facility.

Q2 2022
Unconsolidated joint ventures (continued)

for the three months ended June 30, 2022

(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 $ 21,648 $ 25,628 $ 3,680 $ 10,426 $ 6,990 $ 28,120 $ 96,492
Straight-line rent 3,266 9,349 54 235 512 4,338 17,754
Fair value lease revenue — 257 — 28 1,183 — 1,468
Termination income — — — — (5) — (5)
Total lease revenue 24,914 35,234 3,734 10,689 8,680 32,458 115,709
Parking and other — 2,292 69 174 396 1,645 4,576
Total rental revenue 3 24,914 37,526 3,803 10,863 9,076 34,103 120,285
Expenses
Operating 8,644 12,954 4,128 4,071 3,304 11,787 44,888
Net operating income/(loss) 16,270 24,572 (325) 6,792 5,772 22,316 75,397
Other income/(expense)
Development and management services revenue — — 459 55 6 55 575
Interest and other income 3 4 — 3 — — 10
Interest expense (5,339) (11,886) (3,004) (5) (1,964) (10,021) (32,219)
Transaction costs (175) — — (325) — (311) (811)
Depreciation and amortization expense (8,043) (12,626) (2,759) (4,494) (5,826) (9,545) (43,293)
General and administrative expense (21) (105) (231) (14) (63) (31) (465)
Total other income/(expense) (13,575) (24,613) (5,535) (4,780) (7,847) (19,853) (76,203)
Net income/(loss) $ 2,695 $ (41) $ (5,860) $ 2,012 $ (2,075) $ 2,463 $ (806)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ 1,348 $ (167) $ (2,450) $ 1,091 $ (702) $ 1,962 4 $ 1,082
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 7 6 $ — $ — $ 98
Fair value lease revenue — 301 5 — (219) 6 — — 82
Depreciation and amortization expense 16 (1,103) 5 374 (506) 6 15 (112) (1,316)
Total basis differential 7 16 (711) 5 374 (718) 6 15 (112) (1,136)
Income/(loss) from unconsolidated joint ventures 1,364 (878) (2,076) 373 (687) 1,850 4 (54)
Add:
BXP’s share of depreciation and amortization expense 4,006 7,779 1,006 2,739 1,947 3,643 4 21,120
BXP’s share of FFO $ 5,370 $ 6,901 $ (1,070) $ 3,112 $ 1,260 $ 5,493 $ 21,066

_____________

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

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

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

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

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

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

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

Q2 2022
Lease expirations - All in-service properties1, 2, 3

as of June 30, 2022

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2022 1,491,438 77,342,989 57.44 3.56 % 4
2023 2,203,438 121,302,605 65.94 4.87 %
2024 3,678,642 212,406,948 65.05 8.64 %
2025 2,577,909 162,175,450 68.37 6.28 %
2026 3,112,698 195,346,586 76.37 6.77 %
2027 2,305,028 146,414,890 70.31 5.51 %
2028 3,303,078 194,004,320 74.29 6.91 %
2029 2,905,627 179,262,436 70.88 6.69 %
2030 2,517,042 178,184,609 73.97 6.37 %
2031 1,988,282 146,613,523 79.34 4.89 %
Thereafter 14,600,618 902,705,391 77.80 30.70 %

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
2022 178,848 5,556,285 31.65 7.61 % 4
2023 64,960 5,385,927 85.86 2.72 %
2024 175,217 15,168,331 90.49 7.26 %
2025 125,912 7,102,320 70.95 4.34 %
2026 106,965 16,736,965 174.22 4.16 %
2027 122,436 12,934,502 115.47 4.85 %
2028 121,234 11,367,814 96.37 5.11 %
2029 125,624 11,182,170 109.28 4.43 %
2030 196,925 11,743,448 73.84 6.89 %
2031 54,811 4,167,276 89.72 2.01 %
Thereafter 681,293 66,489,475 123.87 23.26 %

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
2022 1,670,286 82,899,274 54.47 3.80 % 4
2023 2,268,398 126,688,532 66.59 4.74 %
2024 3,853,859 227,575,279 66.30 8.56 %
2025 2,703,821 169,277,770 68.48 6.16 %
2026 3,219,663 212,083,551 79.91 6.62 %
2027 2,427,464 159,349,392 72.62 5.47 %
2028 3,424,312 205,372,134 75.25 6.81 %
2029 3,031,251 190,444,606 72.37 6.56 %
2030 2,713,967 189,928,057 73.96 6.40 %
2031 2,043,093 150,780,799 79.60 4.72 %
Thereafter 15,281,911 969,194,866 79.84 30.27 %

All values are in US Dollars.

_____________

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

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

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement 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 2022
Lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 512,914 493,105 4
2023 863,637 726,836
2024 837,407 805,020
2025 1,045,222 1,026,078
2026 772,357 741,046
2027 623,902 616,102
2028 1,038,056 1,038,056
2029 926,773 797,187
2030 1,358,493 1,351,820
2031 558,878 491,442
Thereafter 4,767,373 3,895,827

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
2022 137,319 137,319 4
2023 15,320 15,005
2024 90,541 90,541
2025 37,421 37,421
2026 26,512 26,512
2027 67,908 61,594
2028 75,560 75,560
2029 56,791 55,441
2030 88,800 54,405
2031 4,266 4,266
Thereafter 196,954 155,866

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
2022 650,233 630,424 4
2023 878,957 741,841
2024 927,948 895,561
2025 1,082,643 1,063,499
2026 798,869 767,558
2027 691,810 677,696
2028 1,113,616 1,113,616
2029 983,564 852,628
2030 1,447,293 1,406,225
2031 563,144 495,708
Thereafter 4,964,327 4,051,693

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 28,058 25,440 4
Q3 2022 176,138 172,292
Q4 2022 308,718 295,374
Total 2022 512,914 493,105
Q1 2023 245,878 175,393
Q2 2023 166,836 159,736
Q3 2023 148,173 133,022
Q4 2023 302,750 258,684
Total 2023 863,637 726,836

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 2022 — —
Q2 2022 8,655 8,655 4
Q3 2022 128,424 128,424
Q4 2022 240 240
Total 2022 137,319 137,319
Q1 2023 1,224 909
Q2 2023 5,486 5,486
Q3 2023 2,443 2,443
Q4 2023 6,167 6,167
Total 2023 15,320 15,005

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 2022 — —
Q2 2022 36,713 34,095 4
Q3 2022 304,562 300,716
Q4 2022 308,958 295,614
Total 2022 650,233 630,424
Q1 2023 247,102 176,302
Q2 2023 172,322 165,222
Q3 2023 150,616 135,465
Q4 2023 308,917 264,851
Total 2023 878,957 741,841

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 114,910 63,201 4
2023 94,066 51,736
2024 132,131 72,672
2025 12,255 6,740
2026 602,745 331,510
2027 1,860 1,023
2028 303,413 157,097
2029 349,913 174,957
2030 — —
2031 — —
Thereafter 428,566 214,470

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
2022 5,695 3,132
2023 1,405 703
2024 4,333 2,283
2025 36,406 18,975
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
2031 — —
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
2022 120,605 66,333 4
2023 95,471 52,439
2024 136,464 74,955
2025 48,661 25,715
2026 608,572 334,715
2027 1,860 1,023
2028 303,413 157,097
2029 388,031 195,922
2030 5,283 2,906
2031 — —
Thereafter 428,566 214,470

All values are in US Dollars.

_____________

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

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

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement 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 2022
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 18,785 10,332 4
Q3 2022 70,785 38,932
Q4 2022 25,340 13,937
Total 2022 114,910 63,201
Q1 2023 90,064 49,535
Q2 2023 — —
Q3 2023 4,002 2,201
Q4 2023 — —
Total 2023 94,066 51,736

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 2022 — —
Q2 2022 — —
Q3 2022 5,695 3,132
Q4 2022 — —
Total 2022 5,695 3,132
Q1 2023 1,405 703
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 1,405 703

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 2022 — —
Q2 2022 18,785 10,332 4
Q3 2022 76,480 42,064
Q4 2022 25,340 13,937
Total 2022 120,605 66,333
Q1 2023 91,469 50,238
Q2 2023 — —
Q3 2023 4,002 2,201
Q4 2023 — —
Total 2023 95,471 52,439

All values are in US Dollars.

_____________

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

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

3Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement 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 2022
Lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 429,535 390,162 4
2023 302,118 200,649
2024 1,339,522 1,095,509
2025 560,508 515,748
2026 525,390 426,328
2027 435,823 378,158
2028 547,256 392,828
2029 663,129 636,762
2030 665,936 623,394
2031 376,287 340,492
Thereafter 4,079,277 3,006,338

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
2022 5,072 5,001
2023 1,847 1,108
2024 11,244 8,623
2025 — —
2026 20,470 17,664
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
2031 13,633 10,123
Thereafter 309,267 226,005

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
2022 434,607 395,163 4
2023 303,965 201,757
2024 1,350,766 1,104,132
2025 560,508 515,748
2026 545,860 443,992
2027 435,823 378,158
2028 547,256 392,828
2029 666,264 639,897
2030 668,831 625,447
2031 389,920 350,615
Thereafter 4,388,544 3,232,343

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q2 2022
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 39,385 24,525 4
Q3 2022 208,510 183,997
Q4 2022 181,640 181,640
Total 2022 429,535 390,162
Q1 2023 85,378 56,748
Q2 2023 46,552 29,760
Q3 2023 113,634 80,500
Q4 2023 56,554 33,641
Total 2023 302,118 200,649

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 2022 — —
Q2 2022 — —
Q3 2022 4,894 4,894
Q4 2022 178 107
Total 2022 5,072 5,001
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 1,847 1,108
Total 2023 1,847 1,108

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 2022 — —
Q2 2022 39,385 24,525 4
Q3 2022 213,404 188,891
Q4 2022 181,818 181,747
Total 2022 434,607 395,163
Q1 2023 85,378 56,748
Q2 2023 46,552 29,760
Q3 2023 113,634 80,500
Q4 2023 58,401 34,749
Total 2023 303,965 201,757

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q2 2022
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 157,242 146,562 4
2023 611,557 553,351
2024 691,361 647,761
2025 616,732 599,224
2026 645,462 558,013
2027 502,370 491,406
2028 524,953 512,697
2029 272,084 253,800
2030 269,363 267,319
2031 816,495 802,173
Thereafter 981,079 950,562

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
2022 5,437 5,437
2023 28,620 28,620
2024 9,080 9,080
2025 26,208 26,208
2026 6,955 6,955
2027 12,951 12,951
2028 13,314 13,314
2029 9,944 9,944
2030 4,590 4,590
2031 6,709 3,355
Thereafter 27,911 27,911

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
2022 162,679 151,999 63.08 4
2023 640,177 581,971
2024 700,441 656,841
2025 642,940 625,432
2026 652,417 564,968
2027 515,321 504,357
2028 538,267 526,011
2029 282,028 263,744
2030 273,953 271,909
2031 823,204 805,528
Thereafter 1,008,990 978,473

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q2 2022
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 9,780 9,780 4
Q3 2022 96,279 92,771
Q4 2022 51,183 44,012
Total 2022 157,242 146,562
Q1 2023 95,459 85,590
Q2 2023 37,053 20,842
Q3 2023 337,157 335,068
Q4 2023 141,888 111,852
Total 2023 611,557 553,351

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 2022 — —
Q2 2022 — —
Q3 2022 2,387 2,387
Q4 2022 3,050 3,050
Total 2022 5,437 5,437
Q1 2023 7,365 7,365
Q2 2023 1,218 1,218
Q3 2023 12,345 12,345
Q4 2023 7,692 7,692
Total 2023 28,620 28,620

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 2022 — —
Q2 2022 9,780 9,780 4
Q3 2022 98,666 95,158
Q4 2022 54,233 47,062
Total 2022 162,679 151,999
Q1 2023 102,824 92,955
Q2 2023 38,271 22,060
Q3 2023 349,502 347,413
Q4 2023 149,580 119,544
Total 2023 640,177 581,971

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q2 2022
Lease expirations - Seattle region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 28,598 9,629 4
2023 29,198 15,610
2024 31,366 12,134
2025 19,854 6,685
2026 33,201 33,201
2027 184,533 184,533
2028 669,079 332,548
2029 111,494 111,494
2030 55,243 55,243
2031 94,744 91,599
Thereafter 64,737 51,388

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
2022 — —
2023 — —
2024 1,040 350
2025 — —
2026 3,686 1,241
2027 — —
2028 4,663 4,663
2029 — —
2030 — —
2031 3,048 3,048
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
2022 28,598 9,629 4
2023 29,198 15,610
2024 32,406 12,484
2025 19,854 6,685
2026 36,887 34,442
2027 184,533 184,533
2028 673,742 337,211
2029 111,494 111,494
2030 55,243 55,243
2031 97,792 94,647
Thereafter 64,737 51,388

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 6,009 2,023 4
Q3 2022 17,231 5,802
Q4 2022 5,358 1,804
Total 2022 28,598 9,629
Q1 2023 2,214 745
Q2 2023 — —
Q3 2023 — —
Q4 2023 26,984 14,864
Total 2023 29,198 15,610

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 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —

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 2022 — —
Q2 2022 6,009 2,023 4
Q3 2022 17,231 5,802
Q4 2022 5,358 1,804
Total 2022 28,598 9,629
Q1 2023 2,214 745
Q2 2023 — —
Q3 2023 — —
Q4 2023 26,984 14,864
Total 2023 29,198 15,610

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 248,239 243,751 4
2023 302,862 291,500
2024 646,855 631,991
2025 323,338 217,379
2026 533,543 467,882
2027 556,540 411,136
2028 220,321 178,065
2029 582,234 554,960
2030 168,007 111,115
2031 141,878 122,193
Thereafter 4,279,586 3,483,814

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
2022 25,325 24,691
2023 17,768 17,292
2024 58,979 56,752
2025 25,877 17,497
2026 43,515 40,491
2027 41,577 37,475
2028 27,697 24,421
2029 17,636 12,839
2030 95,357 95,082
2031 27,155 25,655
Thereafter 147,161 126,969

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
2022 273,564 268,442 4
2023 320,630 308,792
2024 705,834 688,743
2025 349,215 234,876
2026 577,058 508,373
2027 598,117 448,611
2028 248,018 202,486
2029 599,870 567,799
2030 263,364 206,197
2031 169,033 147,848
Thereafter 4,426,747 3,610,783

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of June 30, 2022

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 2022 — —
Q2 2022 67,592 67,592 4
Q3 2022 84,179 79,691
Q4 2022 96,468 96,468
Total 2022 248,239 243,751
Q1 2023 48,461 48,461
Q2 2023 38,989 36,629
Q3 2023 151,244 143,713
Q4 2023 64,168 62,697
Total 2023 302,862 291,500

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 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 25,325 24,691
Total 2022 25,325 24,691
Q1 2023 7,775 7,775
Q2 2023 5,008 4,532
Q3 2023 2,128 2,128
Q4 2023 2,857 2,857
Total 2023 17,768 17,292

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 2022 — —
Q2 2022 67,592 67,592 4
Q3 2022 84,179 79,691
Q4 2022 121,793 121,159
Total 2022 273,564 268,442
Q1 2023 56,236 56,236
Q2 2023 43,997 41,161
Q3 2023 153,372 145,841
Q4 2023 67,025 65,554
Total 2023 320,630 308,792

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Lease expirations - CBD properties 1, 2, 3

as of June 30, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 224,007 204,198 4
2023 538,648 401,532
2024 457,306 424,919
2025 333,282 314,138
2026 560,622 529,311
2027 521,923 507,808
2028 993,645 993,645
2029 591,164 460,228
2030 1,291,272 1,250,204
2031 28,779 21,683
Thereafter 4,561,924 3,649,290

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
2022 120,605 66,333 4
2023 95,471 52,439
2024 136,464 74,955
2025 48,661 25,716
2026 608,572 334,715
2027 1,860 1,023
2028 303,413 157,097
2029 388,031 195,921
2030 5,283 2,906
2031 — —
Thereafter 428,566 214,470

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
2022 309,950 270,506 4
2023 255,902 153,694
2024 851,743 605,109
2025 322,474 277,714
2026 307,867 205,999
2027 197,448 139,783
2028 524,882 370,454
2029 597,949 571,582
2030 621,657 578,273
2031 228,644 189,339
Thereafter 4,254,770 3,098,569

All values are in US Dollars.

Q2 2022
Lease expirations - CBD properties (continued) 1, 2, 3

as of June 30, 2022

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
2022 122,979 122,979 4
2023 334,096 334,096
2024 506,452 506,452
2025 330,907 330,907
2026 477,518 477,518
2027 411,052 411,052
2028 513,755 513,755
2029 245,460 245,460
2030 269,865 269,865
2031 787,850 787,850
Thereafter 947,955 947,955

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
2022 28,598 9,629 4
2023 29,198 15,610
2024 32,406 12,484
2025 19,854 6,685
2026 36,887 34,442
2027 184,533 184,533
2028 673,742 337,211
2029 111,494 111,494
2030 55,243 55,243
2031 97,792 94,647
Thereafter 64,737 51,388

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
2022 89,103 83,981
2023 51,391 39,553
2024 181,176 164,085
2025 173,879 59,540
2026 357,804 289,119
2027 229,996 80,490
2028 170,409 124,877
2029 87,384 55,313
2030 90,263 33,096
2031 97,790 76,605
Thereafter 1,371,824 923,647

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
Lease expirations - Suburban properties 1, 2, 3

as of June 30, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 426,226 426,226 4
2023 340,309 340,309
2024 470,642 470,642
2025 749,361 749,361
2026 238,247 238,247
2027 169,887 169,887
2028 119,971 119,971
2029 392,400 392,400
2030 156,021 156,021
2031 534,365 474,025
Thereafter 402,403 402,403

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
2022 124,657 124,657 4
2023 48,063 48,063
2024 499,023 499,023
2025 238,034 238,034
2026 237,993 237,993
2027 238,375 238,375
2028 22,374 22,374
2029 68,315 68,315
2030 47,174 47,174
2031 161,276 161,276
Thereafter 133,774 133,774

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
2022 39,700 29,020
2023 306,081 247,875
2024 193,989 150,389
2025 312,033 294,525
2026 174,899 87,450
2027 104,269 93,305
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
2031 35,354 17,677
Thereafter 61,035 30,518

All values are in US Dollars.

Q2 2022
Lease expirations - Suburban properties (continued) 1, 2, 3

as of June 30, 2022

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
2022 184,461 184,461 4
2023 269,239 269,239
2024 524,658 524,658
2025 175,336 175,336
2026 219,254 219,254
2027 368,121 368,121
2028 77,609 77,609
2029 512,486 512,486
2030 173,101 173,101
2031 71,243 71,243
Thereafter 3,054,923 2,687,137

All values are in US Dollars.

_____________

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

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

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

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

Q2 2022
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 / Jamie Feldman 646.855.1363 / 646.855.5808
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Michael Bilerman / Michael Griffin 212.816.1383 / 212.816.5871
Credit Suisse Tayo Okusanya 212.325.1402
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Peter Abramowitz / Jonathan Peterson 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Todd Thomas 917.368.2286
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
RW Baird & Co., Inc. David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
--- --- ---
Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605 Rating Agencies
--- --- ---
Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q2 2022
--- ---
Definitions

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

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

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 and (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 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, 2020, 2021 and 2022 MYLTIP Units are not included.

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

Q2 2022
Definitions (continued)

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q2 2022
Definitions (continued)

Funds from Operations (FFO)

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

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

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q2 2022
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 21 - 24 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

Q2 2022
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Jun-22 31-Mar-22
Revenue $ 773,927 $ 754,307
Partners’ share of revenue from consolidated joint ventures (JVs) (77,142) (77,150)
BXP’s share of revenue from unconsolidated JVs 56,648 58,415
BXP’s Share of revenue $ 753,433 $ 735,572
Straight-line rent $ 21,601 $ 22,186
Partners’ share of straight-line rent from consolidated JVs (83) (906)
BXP’s share of straight-line rent from unconsolidated JVs 8,883 13,823
BXP’s Share of straight-line rent $ 30,401 $ 35,103
Reinstatements associated with accrued rent (all of which was included within straight-line rent) 1 $ 483 $ 974
Partners’ share of reinstatements associated with accrued rent from consolidated JVs (all of which was included within straight-line rent) 1 — —
BXP’s share of reinstatements associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent) 1 — 1,275
BXP’s Share of reinstatements associated with accrued rent (all of which was included within straight-line rent), net 1 $ 483 $ 2,249
Fair value lease revenue 2 $ 1,919 $ 1,655
Partners’ share of fair value lease revenue from consolidated JVs 2 (142) (119)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 634 649
BXP’s Share of fair value lease revenue 2 $ 2,411 $ 2,185
Lease termination income $ 1,922 $ 2,078
Partners’ share of termination income from consolidated JVs (641) (221)
BXP’s share of termination income from unconsolidated JVs (1) 606
BXP’s Share of termination income $ 1,280 $ 2,463
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 $ 26,474 $ 21,734
Partners’ share of parking and other revenue from consolidated JVs (621) (540)
BXP’s share of parking and other revenue from unconsolidated JVs 2,026 1,766
BXP’s Share of parking and other revenue $ 27,879 $ 22,960
Cash rent abatements and deferrals related to COVID-19 $ 1,682 $ 1,553
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs 97 6
BXP’s share of cash rent abatements and deferrals related to COVID-19 from unconsolidated JVs (39) 87
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 1,740 $ 1,646
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446
Straight-line ground rent expense adjustment $ 746 $ 744
Partners’ share of straight-line ground rent expense adjustment from consolidated JVs — —
BXP’s share of straight-line ground rent expense adjustment from unconsolidated JVs 145 145
BXP’s Share of straight-line ground rent expense adjustment $ 891 $ 889 Q2 2022
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
30-Jun-22 31-Mar-22
Depreciation and amortization $ 183,146 $ 177,624
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,414) (17,653)
BXP’s share of depreciation and amortization from unconsolidated JVs 21,120 22,044
BXP’s Share of depreciation and amortization $ 186,852 $ 182,015
Lease transaction costs that qualify as rent inducements 3 $ 4,452 $ (4,583)
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 — 2,443
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 87 371
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 4,539 $ (1,769)
2nd generation tenant improvements and leasing commissions $ 128,465 $ 36,993
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (41,402) (1,441)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 3,926 10,039
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 90,989 $ 45,591 Maintenance capital expenditures 4 $ 16,256 $ 10,652
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (1,460) (1,523)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 1,022 719
BXP’s Share of maintenance capital expenditures 4 $ 15,818 $ 9,848
Interest expense $ 104,142 $ 101,228
Partners’ share of interest expense from consolidated JVs (11,850) (11,744)
BXP’s share of interest expense from unconsolidated JVs 14,335 13,246
BXP’s Share of interest expense $ 106,627 $ 102,730
Capitalized interest $ 14,079 $ 13,740
Partners’ share of capitalized interest from consolidated JVs (63) (46)
BXP’s share of capitalized interest from unconsolidated JVs 663 1,315
BXP’s Share of capitalized interest $ 14,679 $ 15,009
Amortization of financing costs $ 4,169 $ 3,568
Partners’ share of amortization of financing costs from consolidated JVs (499) (497)
BXP’s share of amortization of financing costs from unconsolidated JVs 749 881
BXP’s Share of amortization of financing costs $ 4,419 $ 3,952

_____________

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 2022
Reconciliations (continued)

for the three months ended June 30, 2022

(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 $ 75,997 $ 100,569 $ 176,566
Straight-line rent (1,875) 1,852 (23)
Fair value lease revenue 327 24 351
Termination income 1,603 — 1,603
Total lease revenue 76,052 102,445 178,497
Parking and other — 1,380 1,380
Total rental revenue 2 76,052 103,825 179,877
Expenses
Operating 28,837 36,044 64,881
Net Operating Income (NOI) 47,215 67,781 114,996
Other income (expense)
Interest and other income 22 (91) (69)
Interest expense (21,018) (7,658) (28,676)
Depreciation and amortization expense (16,057) (22,998) (39,055)
General and administrative expense (34) (119) (153)
Total other income (expense) (37,087) (30,866) (67,953)
Net income $ 10,128 $ 36,915 $ 47,043
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 18,196 $ 29,666 $ 47,862
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,019 $ 38,115 $ 67,134
Unearned portion of capitalized fees 4 $ 890 $ 123 $ 1,013
Partners’ share of select items 3
Partners’ share of parking and other revenue $ — $ 621 $ 621
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 153 $ 499
Partners’ share of depreciation and amortization related to capitalized fees $ 365 $ 471 $ 836
Partners’ share of capitalized interest $ 63 $ — $ 63
Partners’ share of management and other fees $ 696 $ 862 $ 1,558
Partners’ share of basis differential depreciation and amortization expense $ (17) $ (177) $ (194)
Partners’ share of basis differential interest and other adjustments $ (4) $ (78) $ (82)
Reconciliation of Partners’ share of EBITDAre 5
Partners’ NCI $ 3,011 $ 15,535 $ 18,546
Add:
Partners’ share of interest expense after BXP’s basis differential 8,404 3,446 11,850
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,771 10,643 17,414
Partners’ share of EBITDAre $ 18,186 $ 29,624 $ 47,810
Q2 2022
--- ---
Reconciliations (continued)

for the three months ended June 30, 2022

(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 $ 30,421 $ 46,721 $ 77,142
Less: Termination income 641 — 641
Rental revenue (excluding termination income) 2 29,780 46,721 76,501
Less: Operating expenses (including partners’ share of management and other fees) 12,225 17,076 29,301
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 17,555 $ 29,666 $ 47,221
Rental revenue (excluding termination income) 2 $ 29,780 $ 46,721 $ 76,501
Less: Straight-line rent (750) 833 2 83
Fair value lease revenue 131 11 142
Subtotal 30,399 45,877 76,276
Less: Operating expenses (including partners’ share of management and other fees) 12,225 17,076 29,301
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 18,174 $ 28,822 $ 46,996
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 30,421 $ 46,721 $ 77,142
Add: Development and management services revenue — — —
Revenue $ 30,421 $ 46,721 $ 77,142

_________

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

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

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 2022
Reconciliations (continued)

for the three months ended June 30, 2022

(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 $ 21,648 $ 25,628 $ 3,680 $ 10,426 $ 6,990 $ 28,120 $ 96,492
Straight-line rent 3,266 9,349 54 235 512 4,338 17,754
Fair value lease revenue — 257 — 28 1,183 — 1,468
Termination income — — — — (5) — (5)
Total lease revenue 24,914 35,234 3,734 10,689 8,680 32,458 115,709
Parking and other — 2,292 69 174 396 1,645 4,576
Total rental revenue 3 24,914 37,526 3,803 10,863 9,076 34,103 120,285
Expenses
Operating 8,644 12,954 4,128 4 4,071 3,304 11,787 44,888
Net operating income/(loss) 16,270 24,572 (325) 6,792 5,772 22,316 75,397
Other income/(expense)
Development and management services revenue — — 459 55 6 55 575
Interest and other income 3 4 — 3 — — 10
Interest expense (5,339) (11,886) (3,004) (5) (1,964) (10,021) (32,219)
Transaction costs (175) — — (325) — (311) (811)
Depreciation and amortization expense (8,043) (12,626) (2,759) (4,494) (5,826) (9,545) (43,293)
General and administrative expense (21) (105) (231) (14) (63) (31) (465)
Total other income/(expense) (13,575) (24,613) (5,535) (4,780) (7,847) (19,853) (76,203)
Net income/(loss) $ 2,695 $ (41) $ (5,860) $ 2,012 $ (2,075) $ 2,463 $ (806)
BXP’s share of parking and other revenue $ 2 $ 1,215 $ 35 $ 87 $ 133 $ 554 5 $ 2,026
BXP’s share of amortization of financing costs $ 167 $ 85 $ 79 $ — $ 29 $ 389 5 $ 749
BXP’s share of capitalized interest $ — $ — $ 663 $ — $ — $ — 5 $ 663
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ 1,364 $ (878) $ (2,076) $ 373 $ (687) $ 1,850 5 $ (54)
Add:
BXP’s share of interest expense 2,670 6,289 1,242 3 661 3,470 5 14,335
BXP’s share of depreciation and amortization expense 4,006 7,779 6 1,006 2,739 7 1,947 3,643 5 21,120
BXP’s share of EBITDAre $ 8,040 $ 13,190 6 $ 172 $ 3,115 7 $ 1,921 $ 8,963 5 $ 35,401 Q2 2022
--- ---
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 $ 12,457 $ 20,096 6 $ 1,902 $ 5,219 7 $ 3,056 $ 13,630 5 $ 56,360
BXP’s share of operating expenses 4,323 6,849 1,884 2,036 1,112 4,446 5 20,650
BXP’s share of net operating income/(loss) 8,134 13,247 6 18 3,183 7 1,944 9,184 5 35,710
Less:
BXP’s share of termination income — — — — (1) — (1)
BXP’s share of net operating income/(loss) (excluding termination income) 8,134 13,247 18 3,183 1,945 9,184 5 35,711
Less:
BXP’s share of straight-line rent 1,632 4,860 6 27 125 7 172 2,067 5 8,883
BXP’s share of fair value lease revenue — 442 6 — (205) 7 397 — 634
Add:
BXP’s share of straight-line ground rent expense adjustment — — 145 — — — 145
BXP’s share of lease transaction costs that qualify as rent inducements — 105 — — (33) 15 5 87
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 6,502 $ 8,050 6 $ 136 $ 3,263 7 $ 1,343 $ 7,132 5 $ 26,426
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 12,457 $ 20,096 6 $ 1,902 $ 5,219 7 $ 3,056 $ 13,630 5 $ 56,360
Add:
BXP’s share of development and management services revenue — — 230 28 2 28 288
BXP’s share of revenue $ 12,457 $ 20,096 6 $ 2,132 $ 5,247 7 $ 3,058 $ 13,658 5 $ 56,648

_____________

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

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

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

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

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

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

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

Q2 2022
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Mar-22 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Net income attributable to Boston Properties, Inc. 143,047 100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 16,361 11,084
Noncontrolling interest in property partnerships 17,549 16,467
Net income 176,957 128,147
Add:
Interest expense 101,228 107,902
Losses from early extinguishments of debt — 898
Depreciation and amortization expense 177,624 176,565
Transaction costs — 331
Payroll and related costs from management services contracts 4,065 3,505
General and administrative expense 43,194 44,959
Less:
Interest and other income (loss) 1,228 1,168
Gains (losses) from investments in securities (2,262) 1,659
Gains on sales of real estate 22,701 —
Income from unconsolidated joint ventures 2,189 5,225
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505
Development and management services revenue 5,831 6,803
Net Operating Income (NOI) 469,316 443,947
Add:
BXP’s share of NOI from unconsolidated joint ventures 37,321 24,795
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,055 44,376
BXP’s Share of NOI 459,582 424,366
Less:
Termination income 2,078 4,269
BXP’s share of termination income from unconsolidated joint ventures 606 —
Add:
Partners’ share of termination income from consolidated joint ventures 221 (6)
BXP’s Share of NOI (excluding termination income) $ 457,119 $ 420,091
Net Operating Income (NOI) $ 469,316 $ 443,947
Less:
Termination income 2,078 4,269
NOI from non Same Properties (excluding termination income) 13,396 7,273
Same Property NOI (excluding termination income) 453,842 432,405
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 46,834 44,382
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,590 880
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 36,715 24,795
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 10,155 1,173
BXP’s Share of Same Property NOI (excluding termination income) $ 435,158 $ 412,525
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 22,633
Change in BXP’s Share of Same Property NOI (excluding termination income) 5.5 %
Q2 2022
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Mar-22 31-Mar-21
Net income attributable to Boston Properties, Inc. common shareholders $ 143,047 $ 91,624
Preferred stock redemption charge — 6,412
Preferred dividends — 2,560
Net income attributable to Boston Properties, Inc. 143,047 100,596
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 16,361 11,084
Noncontrolling interest in property partnerships 17,549 16,467
Net income 176,957 128,147
Add:
Interest expense 101,228 107,902
Losses from early extinguishments of debt — 898
Depreciation and amortization expense 177,624 176,565
Transaction costs — 331
Payroll and related costs from management services contracts 4,065 3,505
General and administrative expense 43,194 44,959
Less:
Interest and other income (loss) 1,228 1,168
Gains (losses) from investments in securities (2,262) 1,659
Gains on sales of real estate 22,701 —
Income from unconsolidated joint ventures 2,189 5,225
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,505
Development and management services revenue 5,831 6,803
Net Operating Income (NOI) 469,316 443,947
Less:
Straight-line rent 22,186 7,730
Fair value lease revenue 1,655 653
Termination income 2,078 4,269
Add:
Straight-line ground rent expense adjustment 1 576 765
Lease transaction costs that qualify as rent inducements 2 (4,583) 1,859
NOI - cash (excluding termination income) 439,390 433,919
Less:
NOI - cash from non Same Properties (excluding termination income) 5,827 23,829
Same Property NOI - cash (excluding termination income) 433,563 410,090
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 43,366 49,973
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,161 8,517
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 22,759 25,363
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 2,227 1,121
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 411,890 $ 392,876
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 19,014
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 $168 and $167 for the three months ended March 31, 2022 and 2021, respectively. As of March 31, 2022, the Company has remaining lease payments aggregating approximately $25.4 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 2022
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Jun-21 31-Mar-21
Revenue
Lease $ 684,025 $ 685,817
Parking and other 17,864 14,494
Insurance proceeds 418 2,444
Hotel revenue 1,561 632
Development and management services 7,284 6,803
Direct reimbursements of payroll and related costs from management services contracts 2,655 3,505
Total revenue 713,807 713,695
Expenses
Operating 117,769 118,516
Real estate taxes 130,440 136,395
Demolition costs 92 18
Restoration expenses related to insurance claim 402 2,460
Hotel operating 1,996 2,051
General and administrative 38,405 44,959
Payroll and related costs from management services contracts 2,655 3,505
Transaction costs 751 331
Depreciation and amortization 183,838 176,565
Total expenses 476,348 484,800
Other income (expense)
Income (loss) from unconsolidated joint ventures (1,373) 5,225
Gains on sales of real estate 7,756 —
Gains from investments in securities 2,275 1,659
Interest and other income (loss) 1,452 1,168
Losses from early extinguishments of debt — (898)
Interest expense (106,319) (107,902)
Net income 141,250 128,147
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (17,164) (16,467)
Noncontrolling interest - common units of the Operating Partnership (12,383) (11,084)
Net income attributable to Boston Properties, Inc. 111,703 100,596
Preferred dividends — (2,560)
Preferred stock redemption charge — (6,412)
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 91,624
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.72 $ 0.59
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.71 $ 0.59

67

Document

Exhibit 99.2

bxp-colorb.gif

BXP ANNOUNCES 2nd QUARTER 2022 RESULTS; REPORTS Q2 EPS OF $1.42 AND FFO PER SHARE OF $1.94

Exceeded Q2 2022 Guidance for EPS and FFO; Increased Full Year 2022 Guidance for EPS and FFO; Executed 1.9 Million SF of Leases in Q2; and Expanded Presence in the Seattle Market

BOSTON, MA, July 26, 2022 - Boston Properties, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of Class A office properties in the United States, reported results today for the second quarter ended June 30, 2022.

Financial highlights for the second quarter include:

•Revenue grew more than 8% to $773.9 million for the quarter ended June 30, 2022, as compared to $713.8 million for the quarter ended June 30, 2021.

•Net income attributable to common shareholders of $223.0 million, or $1.42 per diluted share (EPS) for the quarter ended June 30, 2022, compared to $111.7 million, or $0.71 per diluted share, for the quarter ended June 30, 2021.

•Funds from Operations (FFO) of $304.6 million, or $1.94 per diluted share for the quarter ended June 30, 2022, compared to FFO of $268.6 million, or $1.72 per diluted share, for the quarter ended June 30, 2021.

•EPS and FFO per share exceeded the mid-points of BXP’s guidance by $0.62 and $0.09 per share, respectively. EPS included a gain on sale of $0.55 per share, and each of EPS and FFO included $0.09 per share of better-than-projected portfolio performance. The portfolio outperformance was partially due to lower-than-projected operating expenses of $0.05 per share resulting from the deferral of certain maintenance expenses. We expect to recognize a majority of those Q2 expense savings in the second half of 2022.

BXP provided guidance for (1) third quarter 2022 EPS of $0.74 - $0.76 and FFO of $1.86 - $1.88 per diluted share, and (2) full year 2022 EPS of $5.40 - $5.45 and FFO of $7.48 - $7.53 per diluted share. See “EPS and FFO per Share Guidance” below.

Second quarter and recent business highlights include:

•Executed approximately 1.9 million square feet of leases, the strongest leasing quarter since Q3 2019 and approximately 140% of our historical 10-year average for the quarter. Notable leases include:

◦A 570,000 square foot lease for the first phase of a future life sciences development at 290 Binney Street in Cambridge, MA. The lease and the commencement of development are subject to various conditions, some of which are not within BXP’s control

◦A 125,000 square foot lease at 767 Fifth Avenue (The GM Building) in New York City, New York

–more–

◦A 112,000 square foot lease with a life sciences client at 180 CityPoint in Waltham, Massachusetts

◦A 104,000 square foot lease at 140 Kendrick Street in Needham, Massachusetts

•Completed the acquisition of Madison Centre in Seattle, Washington, for a gross purchase price of approximately $730.0 million. Madison Centre is an approximately 755,000 square foot, 37-story, LEED-Platinum certified, Class A office property. Madison Centre was constructed in 2017, is approximately 93% leased, and is considered one of the highest quality buildings in Seattle. The acquisition was completed with a $730.0 million unsecured term loan that matures on May 16, 2023. As of June 30, 2022, the term loan bears interest at a variable rate equal to Term SOFR plus 0.95% per annum.

•Commenced two development projects within Reston Town Center in Reston, Virginia:

◦A residential property that is expected to consist of 508 units across a five-story low-rise building and an iconic 39-story tower, which will be one of the tallest buildings in Northern Virginia. The fifth floor of the tower will serve as a full-floor amenity level with a large co-working space, fitness center, sports bar/game area, communal kitchen, and numerous seating areas. A pool and a collection of fire pit areas will sit above a structured garage. The property is owned by a newly formed joint venture with an institutional partner in which BXP has a 20% interest. The joint venture obtained a $140.0 million construction loan that bears interest at a variable rate equal to SOFR plus 2.00% per annum and matures on May 13, 2026, with two, one-year extension options, subject to certain conditions.

◦Adjacent to the residential property, a Class A office and retail project that, when completed, will consist of approximately 90,000 square feet of boutique commercial space with highly efficient floor plates. Premium amenities will include a large rooftop terrace and indoor amenity space with a catering kitchen.

•In June 2022, completed and fully placed in-service 325 Main Street, a Class A office building with approximately 414,000 square feet of office and retail space located in Cambridge, Massachusetts. The office component, comprising approximately 380,000 square feet, is 100% leased.

•In June 2022, completed the sale of a portfolio of eleven suburban office properties aggregating approximately 733,000 net rentable square feet, located in Springfield, Virginia, for an aggregate gross sales price of $127.0 million. Net cash proceeds totaled approximately $121.9 million, and BXP recognized a gain on sale of real estate totaling approximately $96.2 million.

•In June 2022, refinanced the mortgage loan collateralized by Hub50House located in Boston, Massachusetts. The new mortgage loan has a principal balance of $185.0 million, bears interest at a variable rate equal to SOFR plus 1.35% per annum and matures on June 17, 2032. The property is owned by a joint venture in which BXP has a 50% interest. At closing, the joint venture entered into interest rate swap contracts with notional amounts aggregating $185.0 million effective through April 10, 2032, resulting in a fixed rate of approximately 4.432% per annum through the expiration of the interest rate swap contracts. The previous construction loan had an outstanding balance of approximately $176.7 million and matured in June 2022.

•Continued leadership and ongoing commitment to ESG and sustainability performance:

–more–

◦In April 2022, released BXP’s 2021 ESG Report, which highlights that BXP remains on track to achieve carbon-neutral operations by 2025. Following the report’s release, BXP hosted its first ESG Investor Webcast in June 2022.

◦In May 2022, received the 2022 ENERGY STAR® Partner of the Year - Sustained Excellence Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy for the second consecutive year.

◦In May 2022, BXP’s ESG rating was upgraded from ‘A’ to ‘AA’ by MSCI ESG Research. MSCI is a leading provider of in-depth research, ratings and analysis of environmental, social and governance-related business activities for the global investment community.

•In June 2022, celebrated the 25th Anniversary of BXP’s listing on the New York Stock Exchange. Representatives from BXP across the U.S. rang the closing bell on June 24th in recognition of this milestone.

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, 2022. 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 and full year 2022 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space, and the earnings impact of the events referenced in this release and those referenced during the related conference call. Except as otherwise publicly disclosed, the estimates do not include the impacts of any potential (1) capital markets activity, (2) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (3) 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 2022 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 0.74 $ 0.76 $ 5.40 $ 5.45
Add:
Projected Company share of real estate depreciation and amortization 1.12 1.12 4.37 4.37
Projected Company share of (gains)/losses on sales of real estate — — (2.29) (2.29)
Projected FFO per share (diluted) $ 1.86 $ 1.88 $ 7.48 $ 7.53

–more–

BXP will host a conference call on Wednesday, July 27, 2022 at 10:00 AM Eastern Time, open to the general public, to discuss the second quarter 2022 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/BIb368dd8ce4f440c5b320e7828f6f17f6 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 2022 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

Boston Properties (NYSE: BXP) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires, and owns a diverse portfolio of primarily Class A office space. Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 53.7 million square feet and 193 properties, including twelve properties under construction/redevelopment. For more information about BXP, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “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 statement. These factors include, without limitation, the risks and uncertainties related to the impact of the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, the impact of geopolitical conflicts, including the ongoing war in Ukraine, and the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, increasing interest rates, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and client behavior, as well as possible future governmental responses, risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets, risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets, BXP’s ability to enter into new leases or renew leases on favorable terms, dependence on clients’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on 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 may be required by law.

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
June 30, 2022 December 31, 2021
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 23,522,913 $ 22,298,103
Construction in progress 593,958 894,172
Land held for future development 583,700 560,355
Right of use assets - finance leases 237,488 237,507
Right of use assets - operating leases 168,370 169,778
Less: accumulated depreciation (6,077,270) (5,883,961)
Total real estate 19,029,159 18,275,954
Cash and cash equivalents 456,491 452,692
Cash held in escrows 46,359 48,466
Investments in securities 31,457 43,632
Tenant and other receivables, net 64,607 70,186
Related party note receivable, net 78,576 78,336
Note receivables, net — 9,641
Accrued rental income, net 1,265,480 1,226,745
Deferred charges, net 684,078 618,798
Prepaid expenses and other assets 55,232 57,811
Investments in unconsolidated joint ventures 1,554,994 1,482,997
Total assets $ 23,266,433 $ 22,365,258
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,269,948 $ 3,267,914
Unsecured senior notes, net 9,489,030 9,483,695
Unsecured line of credit 165,000 145,000
Unsecured term loan, net 728,795 —
Lease liabilities - finance leases 246,832 244,421
Lease liabilities - operating leases 204,643 204,561
Accounts payable and accrued expenses 342,467 320,775
Dividends and distributions payable 170,937 169,859
Accrued interest payable 96,821 94,796
Other liabilities 401,360 391,441
Total liabilities 15,115,833 14,322,462
Commitments and contingencies — —
Redeemable deferred stock units 7,931 9,568
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, 156,805,330 and 156,623,749 issued and 156,726,430 and 156,544,849 outstanding at June 30, 2022 and December 31, 2021, respectively 1,567 1,565
Additional paid-in capital 6,524,997 6,497,730
Dividends in excess of earnings (567,016) (625,891)
Treasury common stock at cost, 78,900 shares at June 30, 2022 and December 31, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (27,077) (36,662)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,929,749 5,834,020
Noncontrolling interests:
Common units of the Operating Partnership 660,214 642,655
Property partnerships 1,552,706 1,556,553
Total equity 8,142,669 8,033,228
Total liabilities and equity $ 23,266,433 $ 22,365,258

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended June 30, Six months ended June 30,
2022 2021 2022 2021
(in thousands, except for per share amounts)
Revenue
Lease $ 721,899 $ 684,025 $ 1,440,019 $ 1,369,842
Parking and other 30,346 18,282 52,080 35,220
Hotel revenue 12,089 1,561 16,646 2,193
Development and management services 6,354 7,284 12,185 14,087
Direct reimbursements of payroll and related costs from management services contracts 3,239 2,655 7,304 6,160
Total revenue 773,927 713,807 1,528,234 1,427,502
Expenses
Operating
Rental 273,848 248,703 544,103 506,092
Hotel 6,444 1,996 11,284 4,047
General and administrative 34,665 38,405 77,859 83,364
Payroll and related costs from management services contracts 3,239 2,655 7,304 6,160
Transaction costs 496 751 496 1,082
Depreciation and amortization 183,146 183,838 360,770 360,403
Total expenses 501,838 476,348 1,001,816 961,148
Other income (expense)
Income (loss) from unconsolidated joint ventures (54) (1,373) 2,135 3,852
Gains on sales of real estate 96,247 7,756 118,948 7,756
Interest and other income (loss) 1,195 1,452 2,423 2,620
Other income - assignment fee 6,624 — 6,624 —
Gains (losses) from investments in securities (4,716) 2,275 (6,978) 3,934
Losses from early extinguishment of debt — — — (898)
Interest expense (104,142) (106,319) (205,370) (214,221)
Net income 267,243 141,250 444,200 269,397
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (18,546) (17,164) (36,095) (33,631)
Noncontrolling interest—common units of the Operating Partnership (25,708) (12,383) (42,061) (23,422)
Net income attributable to Boston Properties, Inc. 222,989 111,703 366,044 212,344
Preferred dividends — — — (2,560)
Preferred stock redemption charge — — — (6,412)
Net income attributable to Boston Properties, Inc. common shareholders $ 222,989 $ 111,703 $ 366,044 $ 203,372
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 1.42 $ 0.72 $ 2.33 $ 1.30
Weighted average number of common shares outstanding 156,720 156,107 156,685 156,016
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 1.42 $ 0.71 $ 2.33 $ 1.30
Weighted average number of common and common equivalent shares outstanding 157,192 156,519 157,098 156,307

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended June 30, Six months ended June 30,
2022 2021 2022 2021
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 222,989 $ 111,703 $ 366,044 $ 203,372
Add:
Preferred stock redemption charge — — — 6,412
Preferred dividends — — — 2,560
Noncontrolling interest - common units of the Operating Partnership 25,708 12,383 42,061 23,422
Noncontrolling interests in property partnerships 18,546 17,164 36,095 33,631
Net income 267,243 141,250 444,200 269,397
Add:
Depreciation and amortization expense 183,146 183,838 360,770 360,403
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,414) (17,113) (35,067) (33,570)
Company’s share of depreciation and amortization from unconsolidated joint ventures 21,120 15,350 43,164 33,762
Corporate-related depreciation and amortization (413) (444) (817) (884)
Less:
Gains on sale of investment included within income from unconsolidated joint ventures — — — 10,257
Gains on sales of real estate 96,247 7,756 118,948 7,756
Noncontrolling interests in property partnerships 18,546 17,164 36,095 33,631
Preferred dividends — — — 2,560
Preferred stock redemption charge — — — 6,412
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 338,889 297,961 657,207 568,492
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 34,329 29,319 66,509 55,940
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 304,560 $ 268,642 $ 590,698 $ 512,552
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.87 % 90.16 % 89.88 % 90.16 %
Weighted average shares outstanding - basic 156,720 156,107 156,685 156,016
FFO per share basic $ 1.94 $ 1.72 $ 3.77 $ 3.29
Weighted average shares outstanding - diluted 157,192 156,519 157,098 156,307
FFO per share diluted $ 1.94 $ 1.72 $ 3.76 $ 3.28

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

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

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Leased by Location
June 30, 2022 December 31, 2021
Boston 91.5 % 91.4 %
Los Angeles 93.4 % 88.8 %
New York 87.8 % 87.6 %
San Francisco 86.9 % 87.3 %
Seattle 89.1 % 90.9 %
Washington, DC 89.4 % 87.2 %
Total Portfolio 89.5 % 88.8 %

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

#

Report a Problem

Category
Description
Email (optional, for follow-up)