Equibles

8-K

BXP, Inc. (BXP)

8-K 2021-10-26 For: 2021-10-26
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): October 26, 2021

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

Registrant 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 October 26, 2021, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the third quarter of 2021. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter endedSeptember30, 2021.
*99.2 Press release datedOctober 26, 2021.
*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: October 26, 2021

Document

Exhibit 99.1

safecoplazab.jpg

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Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2021

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s complete portfolio totals 52.5 million square feet and 202 properties, including nine properties under construction/redevelopment. The Company’s properties include 183 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned a tenth consecutive Global Real Estate Sustainability Benchmark (GRESB) “Green Star” recognition and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

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

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

GENERAL INFORMATION

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

(Cover photo: Safeco Plaza, Seattle, WA)

Q3 2021
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 4
Consolidated Income Statements 5
Funds From Operations (FFO) 6
Funds Available for Distribution (FAD) 7
Net Operating Income (NOI) 8
Same Property Net Operating Income (NOI) by Reportable Segment 10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 12
Acquisitions and Dispositions 13
DEVELOPMENT ACTIVITY
Construction in Progress 14
Land Parcels and Purchase Options 15
LEASING ACTIVITY
Leasing Activity 16
PROPERTY STATISTICS
Portfolio Overview 17
Residential and Hotel Performance 18
In-Service Property Listing 20
Top 20 Tenants Listing and Portfolio Tenant Diversification 24
Occupancy by Location 25
DEBT AND CAPITALIZATION
Capital Structure 26
Debt Analysis 27
Senior Unsecured Debt Covenant Compliance Ratios 28
Net Debt to EBITDAre 29
Debt Ratios 30
JOINT VENTURES
Consolidated Joint Ventures 31
Unconsolidated Joint Ventures 33
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 36
Boston 37
Los Angeles 39
New York 41
San Francisco 43
Washington, DC 45
CBD 47
Suburban 49
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 51
Definitions 52
Reconciliations 56
Consolidated Income Statement - Prior Year 64
Q3 2021
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Company profile

SNAPSHOT

(as of September 30, 2021)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 202
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 52.5 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 173.7 million
Closing Price, at the end of the quarter $108.35 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 3.6%
Consolidated Market Capitalization 2 $32.2 billion
BXP’s Share of Market Capitalization 2, 3 $32.3 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

MANAGEMENT

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

____________________

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

2For additional detail, see page 26.

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

Q3 2021
Guidance and assumptions

GUIDANCE

The Company’s guidance for the full year 2021 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 October 26, 2021 and those referenced during the Company’s conference call scheduled for October 27, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatement of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains and losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 54. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Full Year 2021 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 3.11 $ 3.13 $ 2.97 $ 3.17
Add:
Projected Company share of real estate depreciation and amortization 4.14 4.14 4.28 4.28
Projected Company share of (gains)/losses on sales of real estate (0.75) (0.75) — —
Projected FFO per share (diluted) $ 6.50 $ 6.52 $ 7.25 $ 7.45

ASSUMPTIONS

(dollars in thousands)

Full Year 2021 Full Year 2022
Low High Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 89.00 % 88.00 % 90.00 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) 5.00 % 6.00 % 2.00 % 3.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 4.00 % 5.00 % 5.50 % 6.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 26,000 $ 28,000 $ 72,000 $ 80,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (15,000) $ (13,000) $ (11,000) $ (9,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 115,000 $ 120,000 $ 90,000 $ 115,000
Termination income $ 12,000 $ 13,000 $ — $ 4,000
Other revenue (expense):
Development and management services revenue $ 25,000 $ 26,000 $ 22,000 $ 28,000
General and administrative expense 1 $ (148,000) $ (147,000) $ (157,000) $ (151,000)
Net interest expense 2 $ (469,000) $ (466,000) $ (415,000) $ (405,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (141,000) $ (139,000) $ (147,000) $ (143,000)

________________

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

2 2021 Net interest expense assumption includes the charge of approximately $43 million related to the early extinguishment of debt in connection with the early redemption on October 15, 2021 of the Company’s $1.0 billion aggregate principal amount of 3.85% unsecured senior notes that was scheduled to mature in February 2023.

Q3 2021
Financial highlights

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

Three Months Ended
30-Sep-21 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 108,297 $ 111,703
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.69 $ 0.71
FFO attributable to Boston Properties, Inc. 1 $ 270,477 $ 268,642
Diluted FFO per share 1 $ 1.73 $ 1.72
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 236,608 $ 178,341
Selected items:
Revenue $ 730,056 $ 713,807
Recoveries from tenants $ 107,766 $ 100,433
Service income from tenants $ 1,874 $ 1,516
BXP’s Share of revenue 3 $ 696,313 $ 683,273
BXP’s Share of straight-line rent 3 $ 35,811 $ 30,855
BXP’s Share of fair value lease revenue 3, 4 $ 1,793 $ 1,193
BXP’s Share of termination income 3 $ 1,847 $ 6,067
Ground rent expense $ 3,249 $ 3,261
Capitalized interest $ 11,586 $ 13,014
Capitalized wages $ 3,366 $ 3,459
Loss from unconsolidated joint ventures $ (5,597) $ (1,373)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 12,206 $ 13,977
Net income attributable to noncontrolling interests in property partnerships $ 18,971 $ 17,164
FFO attributable to noncontrolling interests in property partnerships 6 $ 35,744 $ 34,277
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 1,906 $ 2,207
Below-market rents (included within Other Liabilities) $ 24,823 $ 26,271
Accrued rental income liability (included within Other Liabilities) $ 132,580 $ 136,085
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 3.79 3.84
Interest Coverage Ratio (including capitalized interest) 7 3.37 3.37
Fixed Charge Coverage Ratio 7 2.94 2.83
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.70 7.44
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 7.4 % 8.9 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 9.2 % 7.5 %
FAD Payout Ratio 2 71.97 % 95.47 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.9 % 64.6 %
Occupancy of In-Service Properties 88.4 % 88.6 %
Capitalization:
Consolidated Debt $ 13,378,350 $ 12,536,065
BXP’s Share of Debt 10 $ 13,477,453 $ 12,534,659
Consolidated Market Capitalization $ 32,196,903 $ 32,436,223
Consolidated Debt/Consolidated Market Capitalization 41.55 % 38.65 %
BXP’s Share of Market Capitalization 10 $ 32,296,006 $ 32,434,817
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 41.73 % 38.65 %

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

2For a quantitative reconciliation of FAD, see page 7. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

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

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

5For a quantitative reconciliation for the three months ended September 30, 2021, see page 35.

6For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.

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

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

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

10For a quantitative reconciliation for September 30, 2021, see page 26.

Q3 2021
Consolidated Balance Sheets

(unaudited and in thousands)

30-Sep-21 30-Jun-21
ASSETS
Real estate $ 22,088,835 $ 22,012,095
Construction in progress 1,054,531 908,061
Land held for future development 568,034 497,019
Right of use assets - finance leases 237,845 237,765
Right of use assets - operating leases 170,085 170,331
Less accumulated depreciation (5,850,397) (5,752,818)
Total real estate 18,268,933 18,072,453
Cash and cash equivalents 1,002,728 557,307
Cash held in escrows 79,193 79,973
Investments in securities 41,517 41,476
Tenant and other receivables, net 61,269 58,624
Related party note receivable, net 78,144 77,872
Notes receivable, net 19,297 19,087
Accrued rental income, net 1,203,840 1,172,411
Deferred charges, net 622,807 627,338
Prepaid expenses and other assets 97,560 46,946
Investments in unconsolidated joint ventures 1,373,522 1,305,589
Total assets $ 22,848,810 $ 22,059,076
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,898,699 $ 2,901,709
Unsecured senior notes, net 10,479,651 9,634,356
Unsecured line of credit — —
Lease liabilities - finance leases 243,562 243,381
Lease liabilities - operating leases 204,137 226,594
Accounts payable and accrued expenses 331,687 305,969
Dividends and distributions payable 169,739 169,718
Accrued interest payable 87,408 107,386
Other liabilities 370,403 370,990
Total liabilities 14,785,286 13,960,103
Commitments and contingencies — —
Redeemable deferred stock units 8,775 8,980
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, 156,285,391 and 156,214,859 issued and 156,206,491 and 156,135,959 outstanding at September 30, 2021 and June 30, 2021, respectively 1,562 1,561
Additional paid-in capital 6,415,802 6,405,916
Dividends in excess of earnings (657,021) (612,247)
Treasury common stock at cost, 78,900 shares at September 30, 2021 and June 30, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (40,803) (43,166)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,716,818 5,749,342
Noncontrolling interests:
Common units of the Operating Partnership 609,830 615,308
Property partnerships 1,728,101 1,725,343
Total equity 8,054,749 8,089,993
Total liabilities and equity $ 22,848,810 $ 22,059,076
Q3 2021
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Sep-21 30-Jun-21
Revenue
Lease $ 692,260 $ 684,025
Parking and other 21,266 17,864
Insurance proceeds 1 2,241 418
Hotel revenue 5,189 1,561
Development and management services 6,094 7,284
Direct reimbursements of payroll and related costs from management services contracts 3,006 2,655
Total revenue 730,056 713,807
Expenses
Operating 124,153 117,769
Real estate taxes 131,718 130,440
Demolition costs 169 92
Restoration expenses related to insurance claim 1 2,241 402
Hotel operating 3,946 1,996
General and administrative 2 34,560 38,405
Payroll and related costs from management services contracts 3,006 2,655
Transaction costs 1,888 751
Depreciation and amortization 179,412 183,838
Total expenses 481,093 476,348
Other income (expense)
Loss from unconsolidated joint ventures (5,597) (1,373)
Gains on sales of real estate 348 7,756
Gains (losses) from investments in securities 2 (190) 2,275
Interest and other income (loss) 1,520 1,452
Interest expense (105,794) (106,319)
Net income 139,250 141,250
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,971) (17,164)
Noncontrolling interest - common units of the Operating Partnership 3 (11,982) (12,383)
Net income attributable to Boston Properties, Inc. $ 108,297 $ 111,703
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.69 $ 0.72
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.69 $ 0.71

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

2General and administrative expense includes $(0.2) million and $2.3 million and Gains (losses) from investments in securities include $(0.2) million and $2.3 million for the three months ended September 30, 2021 and June 30, 2021, respectively, related to the Company’s deferred compensation plan.

3For additional detail, see page 6.

Q3 2021
Funds from operations (FFO) 1

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

Three Months Ended
30-Sep-21 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 108,297 $ 111,703
Add:
Noncontrolling interest - common units of the Operating Partnership 11,982 12,383
Noncontrolling interests in property partnerships 18,971 17,164
Net income 139,250 141,250
Add:
Depreciation and amortization expense 179,412 183,838
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (16,773) (17,113)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 17,803 15,350
Corporate-related depreciation and amortization (443) (444)
Less:
Gains on sales of real estate 348 7,756
Noncontrolling interests in property partnerships 18,971 17,164
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 299,930 297,961
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 29,453 29,319
FFO attributable to Boston Properties, Inc. $ 270,477 $ 268,642
Boston Properties, Inc.’s percentage share of Basic FFO 90.18 % 90.16 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 9.82 % 9.84 %
Basic FFO per share $ 1.73 $ 1.72
Weighted average shares outstanding - basic 156,183 156,107
Diluted FFO per share $ 1.73 $ 1.72
Weighted average shares outstanding - diluted 156,598 156,519

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Sep-21 30-Jun-21
Basic FFO $ 299,930 $ 297,961
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 299,930 297,961
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 29,393 29,259
Boston Properties, Inc.’s share of Diluted FFO $ 270,537 $ 268,702

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Sep-21 30-Jun-21
Shares/units for Basic FFO 173,194 173,150
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 415 412
Shares/units for Diluted FFO 173,609 173,562
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,011 17,043
Boston Properties, Inc.’s share of shares/units for Diluted FFO 156,598 156,519
Boston Properties, Inc.’s percentage share of Diluted FFO 90.20 % 90.18 %

_____________

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

2For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.

3For a quantitative reconciliation for the three months ended September 30, 2021, see page 35.

Q3 2021
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Sep-21 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 108,297 $ 111,703
Add:
Noncontrolling interest - common units of the Operating Partnership 11,982 12,383
Noncontrolling interests in property partnerships 18,971 17,164
Net income 139,250 141,250
Add:
Depreciation and amortization expense 179,412 183,838
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (16,773) (17,113)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 17,803 15,350
Corporate-related depreciation and amortization (443) (444)
Less:
Gains on sales of real estate 348 7,756
Noncontrolling interests in property partnerships 18,971 17,164
Basic FFO 299,930 297,961
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 3,379 (132)
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 996 698
Stock-based compensation 8,440 13,993
Non-real estate depreciation 443 444
Unearned portion of capitalized fees from consolidated joint ventures 6 2,207 603
Less:
BXP’s Share of straight-line rent 1 35,811 30,855
BXP’s Share of fair value lease revenue 1, 7 1,793 1,193
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 25,826 82,476
BXP’s Share of maintenance capital expenditures 1, 8 16,800 22,145
Hotel improvements, equipment upgrades and replacements 3 3
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 236,608 $ 178,341
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 170,286 $ 170,266
FAD Payout Ratio1 (B÷A) 71.97 % 95.47 %

_____________

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

2For a quantitative reconciliation for the three months ended September 30, 2021, see page 32.

3For a quantitative reconciliation for the three months ended September 30, 2021, see page 35.

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

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

6See page 58 for additional information.

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

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

Q3 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)

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

_____________

1For a quantitative reconciliation for the three months ended September 30, 2021, see page 61.

2For a quantitative reconciliation for the three months ended September 30, 2021, see pages 58-59.

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to September 30, 2021 and therefore are no longer a part of the Company’s property portfolio.

Q3 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

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

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $40 and $98 for the three months ended September 30, 2021 and 2020, respectively. As of September 30, 2021, the Company has remaining lease payments aggregating approximately $25.4 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

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

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to September 30, 2021 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended September 30, 2021, see page 59.

5For a quantitative reconciliation for the three months ended September 30, 2021, see page 61.

Q3 2021
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Sep-21 30-Sep-20 Change Change 30-Sep-21 30-Sep-20 Change Change
Rental Revenue 2 $ 696,372 $ 668,369 $ 15,276 $ 9,784
Less: Termination income 1,874 2,715 — 691
Rental revenue (excluding termination income) 2 694,498 665,654 4.3 % 15,276 9,093 68.0 %
Less: Operating expenses and real estate taxes 249,844 250,951 (1,107) (0.4) % 8,302 7,378 924 12.5 %
NOI (excluding termination income) 2, 3 $ 444,654 $ 414,703 7.2 % $ 6,974 $ 1,715 306.6 %
Rental revenue (excluding termination income) 2 $ 694,498 $ 665,654 4.3 % $ 15,276 $ 9,093 68.0 %
Less: Straight-line rent and fair value lease revenue 36,596 45,598 (9,002) (19.7) % (8) 153 (161) (105.2) %
Add: Lease transaction costs that qualify as rent inducements 4 4,042 3,966 76 1.9 % 48 — 48 100.0 %
Subtotal 661,944 624,022 37,922 6.1 % 15,332 8,940 6,392 71.5 %
Less: Operating expenses and real estate taxes 249,844 250,951 (1,107) (0.4) % 8,302 7,378 924 12.5 %
Add: Straight-line ground rent expense 5 748 799 (51) (6.4) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 412,848 $ 373,870 10.4 % $ 7,030 $ 1,562 350.1 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Sep-21 30-Sep-20 Change Change 30-Sep-21 30-Sep-20 Change Change
Rental Revenue 2 $ 711,648 $ 678,153 $ 37,933 $ 39,390
Less: Termination income 1,874 3,406 (17) —
Rental revenue (excluding termination income) 2 709,774 674,747 5.2 % 37,950 39,390 (3.7) %
Less: Operating expenses and real estate taxes 258,146 258,329 (183) (0.1) % 15,494 15,846 (352) (2.2) %
NOI (excluding termination income) 2, 3 $ 451,628 $ 416,418 8.5 % $ 22,456 $ 23,544 (4.6) %
Rental revenue (excluding termination income) 2 $ 709,774 $ 674,747 5.2 % $ 37,950 $ 39,390 (3.7) %
Less: Straight-line rent and fair value lease revenue 36,588 45,751 (9,163) (20.0) % 2,838 1,004 1,834 182.7 %
Add: Lease transaction costs that qualify as rent inducements 4 4,090 3,966 124 3.1 % 367 (128) 495 386.7 %
Subtotal $ 677,276 $ 632,962 44,314 7.0 % 35,479 38,258 (2,779) (7.3) %
Less: Operating expenses and real estate taxes 258,146 258,329 (183) (0.1) % 15,494 15,846 (352) (2.2) %
Add: Straight-line ground rent expense 5 748 799 (51) (6.4) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 419,878 $ 375,432 11.8 % $ 19,985 $ 22,412 (10.8) %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7, 8
Three Months Ended % Three Months Ended %
30-Sep-21 30-Sep-20 Change Change 30-Sep-21 30-Sep-20 Change Change
Rental Revenue 2 $ 75,191 $ 71,395 $ 674,390 $ 646,148
Less: Termination income 10 556 1,847 2,850
Rental revenue (excluding termination income) 2 75,181 70,839 6.1 % 672,543 643,298 4.5 %
Less: Operating expenses and real estate taxes 28,893 29,165 (272) (0.9) % 244,747 245,010 (263) (0.1) %
NOI (excluding termination income) 2, 3 $ 46,288 $ 41,674 11.1 % $ 427,796 $ 398,288 7.4 %
Rental revenue (excluding termination income) 2 $ 75,181 $ 70,839 6.1 % $ 672,543 $ 643,298 4.5 %
Less: Straight-line rent and fair value lease revenue 3,291 7,165 (3,874) (54.1) % 36,135 39,590 (3,455) (8.7) %
Add: Lease transaction costs that qualify as rent inducements 4 1,078 873 205 23.5 % 3,379 2,965 414 14.0 %
Subtotal 72,968 64,547 8,421 13.0 % 639,787 606,673 33,114 5.5 %
Less: Operating expenses and real estate taxes 28,893 29,165 (272) (0.9) % 244,747 245,010 (263) (0.1) %
Add: Straight-line ground rent expense 5 — — — — % 748 799 (51) (6.4) %
NOI - cash (excluding termination income) 2, 3 $ 44,075 $ 35,382 24.6 % $ 395,788 $ 362,462 9.2 %

All values are in US Dollars.

___________________

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

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

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

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

5Excludes the straight-line impact of approximately $40 and $98 for the three months ended September 30, 2021 and 2020, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

Q3 2021
Same property net operating income (NOI) by reportable segment (continued)

6BXP’s Share equals (A) + (B) - (C).

7BXP’s Share of Same Store NOI (excluding termination income) increased $29,508 compared to Q3 2020. Included in the Q3 2020 comparison are BXP’s Share of $5,931 in write-offs associated with accrued rent, net and $3,790 in write-offs associated with accounts receivable, net. These items increased BXP’s Share of Same Store NOI (excluding termination income) by $9,721.

8BXP’s Share of Same Store NOI-cash (excluding termination income) increased $33,326 compared to Q3 2020. Included in the Q3 2020 comparison is BXP’s Share of $3,790 in write-offs associated with accounts receivable, net. Cash rent abatements and deferrals primarily related to COVID-19 decreased approximately $8,812 in Q3 2021 compared to Q3 2020. These items increased BXP’s Share of Same Store NOI-cash (excluding termination income) by $12,602. For additional information, see page 56.

Q3 2021
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Sep-21 30-Jun-21
Maintenance capital expenditures $ 17,779 $ 23,851
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures — (10)
Hotel improvements, equipment upgrades and replacements 3 3
Subtotal 17,782 23,844
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 192 380
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 786 1,156
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 1,171 2,086
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs — —
BXP’s Share of Capital Expenditures 1 $ 17,589 $ 23,294

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Sep-21 30-Jun-21
Square feet 718,572 1,354,986
Tenant improvements and lease commissions PSF $ 43.95 $ 74.26

___________________

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

2Includes 100% of unconsolidated joint ventures.

Q3 2021
Acquisitions and dispositions

For the period from January 1, 2021 through September 30, 2021

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
153 & 211 Second Avenue Waltham, MA June 2, 2021 136,882 $ 100,176 $ 5,000 $ 105,176 100.0 %
Shady Grove Bio+Tech Campus 1 Rockville, MD August 2, 2021 233,452 116,500 — 116,500 64.4 %
Safeco Plaza 2 Seattle, WA September 1, 2021 765,139 465,000 40,000 505,000 90.9 %
Total Acquisitions 1,135,473 $ 681,676 $ 45,000 $ 726,676 86.6 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain
Annapolis Junction Buildings Six and Seven 3 Annapolis, MD March 30, 2021 246,568 $ 65,948 $ 17,600 $ 10,257
6595 Springfield Center Drive 4 Springfield, VA December 13, 2018 N/A N/A N/A 8,104
Total Dispositions 246,568 $ 65,948 $ 17,600 $ 18,361

________________

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

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

3Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million. With the sale of Annapolis Junction Buildings Six and Seven, the Company no longer has any assets in Annapolis, Maryland.

4The Company sold its 6595 Springfield Center Drive development project located in Springfield, Virginia. Concurrently with the sale, the Company agreed to act as development manager and guaranteed the completion of the project. The Company earned a development fee of approximately $7.9 million during the development of this building. Upon completion of the project, the total cost of development was determined to be below the estimated total investment at the time of sale. As a result, the Company recognized a gain on sale of real estate of approximately $8.1 million during the nine months ended September 30, 2021, of which approximately $0.3 million occurred during the three months ended September 30, 2021.

Q3 2021
Construction in progress

as of September 30, 2021

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 9/30/2021 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 $ 283,920 $ 418,400 $ — $ — $ 134,480 90 % — % N/A
100 Causeway Street (50% ownership) Q3 2021 Q3 2022 Boston, MA 632,000 229,627 267,300 200,000 148,603 — 95 % 79 % $ 47
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q1 2022 Q1 2022 Bethesda, MD 734,000 168,945 198,900 127,500 104,036 6,491 100 % — % N/A
Reston Next 6 Q4 2021 Q4 2023 Reston, VA 1,062,000 507,726 715,300 — — 207,574 85 % — % N/A
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 209,193 356,100 — — 146,907 56 % — % N/A
Total Office Properties under Construction 3,328,000 1,399,411 1,956,000 327,500 252,639 495,452 87 % 15 % 47
Lab/Life Sciences
200 West Street (Redevelopment) 7 Q4 2021 Q4 2021 Waltham, MA 138,000 29,340 47,800 — — $ 18,460 100 % — % N/A
880 Winter Street (Redevelopment) Q1 2023 Q2 2024 Waltham, MA 224,000 6,964 108,000 — — 101,036 17 % — % N/A
751 Gateway (49% ownership) Q1 2023 Q3 2024 South San Francisco, CA 229,000 28,723 127,600 — — 98,877 — % — % N/A
180 CityPoint Q1 2024 Q4 2024 Waltham, MA 329,000 41,442 274,700 — — 233,258 — % — % N/A
Total Lab/Life Sciences Properties under Construction 920,000 106,469 558,100 — — 451,631 19 % — % —
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 45,158 182,300 — — 137,142 N/A — % N/A
Total Properties Under Construction 4,307,000 $ 1,551,038 $ 2,696,400 $ 327,500 $ 252,639 $ 1,084,225 72 % 8 12 % $ 47

PROJECTS FULLY PLACED IN-SERVICE DURING 2021

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 9/30/2021 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
One Five Nine East 53rd (55% Ownership) Q1 2021 Q1 2021 New York, NY 220,000 $ 144,402 $ 150,000 $ — $ — $ 5,598 96 % $ 3,261
Total Projects Fully Placed In-Service 220,000 $ 144,402 $ 150,000 $ — $ — $ 5,598 96 % $ 3,261

_____________

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

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

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

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

5Amounts represent Net Operating Income (Loss) for the three months ended September 30, 2021. See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

6On October 19, 2021, approximately 285,000 square feet of the project was placed in-service.

7Represents a portion of the property under redevelopment for conversion to laboratory space.

8Total percentage leased excludes Other.

Q3 2021
Land parcels and purchase options

as of September 30, 2021

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,938,000
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% Ownership) 1,078,000
San Francisco, CA 850,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
South San Francisco, CA (50% Ownership) 411,000
Waltham, MA 396,000
Dulles, VA 310,000
El Segundo, CA (50% Ownership) 275,000
Rockville, MD 3, 4 202,000
Total 13,883,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

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

__________________

1Represents 100% of consolidated and unconsolidated projects.

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

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 22.

4On August 2, 2021, the Company acquired the Shady Grove Bio+Tech Campus in Rockville, Maryland, which includes three buildings that are currently vacant, totaling 202,000 square feet. The Company intends to reposition these three vacant buildings to support life sciences 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.

Q3 2021
Leasing activity

for the three months ended September 30, 2021

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,186,818
Add:
Properties acquired vacant space 1 143,848
Properties placed (and partially placed) in-service 2 503,024
Leases expiring or terminated during the period 862,505
Total space available for lease 6,696,195
1st generation leases 585,933
2nd generation leases with new tenants 407,240
2nd generation lease renewals 311,332
Total space leased 1,304,505
Vacant space available for lease at the end of the period 5,391,690
Net (increase)/decrease in available space (204,872)
Second generation leasing information: 3
Leases commencing during the period (SF) 718,572
Weighted average lease term (months) 58
Weighted average free rent period (days) 124
Total transaction costs per square foot 4 43.95
Increase (decrease) in gross rents 5 (9.42)
Increase (decrease) in net rents 6 (14.23)

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents Total square feet of leases executed in the quarter 8
1st generation 2nd generation total 7 gross 5 net 6
Boston 571,766 209,872 781,638 11.09 % 16.59 % 769,093
Los Angeles — 8,973 8,973 (8.00) % (11.16) % 7,180
New York 14,167 245,097 259,264 (17.65) % (27.06) % 168,990
San Francisco — 91,359 91,359 7.19 % 9.44 % 185,253
Seattle — — — — — —
Washington, DC — 163,271 163,271 (14.64) % (21.87) % 301,301
Total / Weighted Average 585,933 718,572 1,304,505 (9.42) % (14.23) % 1,431,817

_____________

1Total square feet of properties acquired vacant space in Q3 2021 consists of 69,581 square feet at Safeco Plaza and 74,267 square feet at Shady Grove Bio+Tech Campus, which excludes three vacant properties included within Owned Land Parcels on page 15.

2Total square feet of properties partially placed in-service in Q3 2021 consists of 6,709 square feet at 685 Gateway and 496,315 square feet at 100 Causeway Street.

3Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 718,572 square feet of second generation leases that commenced in Q3 2021, leases for 397,853 square feet were signed in prior periods.

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

5Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 507,899 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 507,899 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

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

8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 320,719.

Q3 2021
Portfolio overview

for the three months ended September 30, 2021

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 13,720,696 1,058,690 550,114 330,000 15,659,500
Los Angeles 2,181,670 124,932 — — 2,306,602
New York 11,328,824 417,849 — — 11,746,673
San Francisco 7,291,388 351,186 318,171 — 7,960,745
Seattle 749,110 16,029 — — 765,139
Washington, DC 8,274,757 682,131 822,436 — 9,779,324
Total 43,546,445 2,650,817 1,690,721 330,000 48,217,983
% of Total 90.31 % 5.50 % 3.51 % 0.68 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 655,238 $ 50,402 $ 10,227 $ 5,089 $ 720,956
Less:
Partners’ share from consolidated joint ventures 4 68,008 8,943 — — 76,951
Add:
BXP’s share from unconsolidated joint ventures 5 38,933 2,185 1,923 — 43,041
BXP’s Share of Rental revenue 1 $ 626,163 $ 43,644 $ 12,150 $ 5,089 $ 687,046
% of Total 91.14 % 6.35 % 1.77 % 0.74 % 100.00 %

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

CBD Suburban Total
Boston 26.66 % 7.78 % 34.44 %
Los Angeles 2.79 % — % 2.79 %
New York 26.71 % 2.05 % 28.76 %
San Francisco 16.65 % 2.83 % 19.48 %
Seattle 0.15 % — % 0.15 %
Washington, DC 4.89 % 9.49 % 14.38 %
Total 77.85 % 22.15 % 100.00 %

_____________

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

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

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

4See page 59 for additional information.

5See page 61 for additional information.

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

Q3 2021
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel 2
Three Months Ended Three Months Ended
30-Sep-21 30-Jun-21 30-Sep-21 30-Jun-21
Rental Revenue 3 $ 10,894 $ 9,763 $ 5,189 $ 1,561
Less: Operating expenses and real estate taxes 6,045 5,928 3,946 1,996
Net Operating Income (Loss) (NOI) 3 4,849 3,835 1,243 (435)
Add: BXP’s share of NOI from unconsolidated joint ventures 882 449 N/A N/A
BXP’s Share of NOI 3 $ 5,731 $ 4,284 $ 1,243 $ (435)
Rental Revenue 3 $ 10,894 $ 9,763 $ 5,189 $ 1,561
Less: Straight line rent and fair value lease revenue (13) 21 5 (5)
Add: Lease transaction costs that qualify as rent inducements 48 — — —
Subtotal 10,955 9,742 5,184 1,566
Less: Operating expenses and real estate taxes 6,045 5,928 3,946 1,996
NOI - cash basis 3 4,910 3,814 1,238 (430)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 882 449 N/A N/A
BXP’s Share of NOI - cash basis 3 $ 5,792 $ 4,263 $ 1,238 $ (430)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-21 30-Sep-20
BOSTON
Hub50House (50% ownership), Boston, MA 3 440
Average Monthly Rental Rate $ 3,360 $ 3,571 (5.91) %
Average Rental Rate Per Occupied Square Foot $ 4.69 $ 5.32 (11.84) %
Average Physical Occupancy 87.50 % 45.08 % 94.10 %
Average Economic Occupancy 82.92 % 39.31 % 110.94 %
Proto Kendall Square, Cambridge, MA 3, 4 280
Average Monthly Rental Rate $ 2,642 $ 2,676 (1.27) %
Average Rental Rate Per Occupied Square Foot $ 4.82 $ 4.91 (1.83) %
Average Physical Occupancy 94.52 % 85.71 % 10.28 %
Average Economic Occupancy 93.90 % 83.13 % 12.96 %
The Lofts at Atlantic Wharf, Boston, MA 3, 4 86
Average Monthly Rental Rate $ 3,747 $ 4,231 (11.44) %
Average Rental Rate Per Occupied Square Foot $ 4.17 $ 4.62 (9.74) %
Average Physical Occupancy 96.51 % 80.23 % 20.29 %
Average Economic Occupancy 95.38 % 80.74 % 18.13 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 4 N/A
Average Occupancy 49.40 % — % 100.00 %
Average Daily Rate $ 222.31 $ — 100.00 %
Revenue Per Available Room $ 109.86 $ — 100.00 %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 5 402
Average Monthly Rental Rate $ 3,307 $ 3,887 (14.92) %
Average Rental Rate Per Occupied Square Foot $ 3.92 $ 4.97 (21.13) %
Average Physical Occupancy 48.34 % 2.27 % 2,029.52 %
Average Economic Occupancy 41.03 % 1.70 % 2,313.53 %
Q3 2021
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-21 30-Sep-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 4 508
Average Monthly Rental Rate $ 2,429 $ 2,319 4.74 %
Average Rental Rate Per Occupied Square Foot $ 2.51 $ 2.42 3.72 %
Average Physical Occupancy 93.24 % 82.22 % 13.40 %
Average Economic Occupancy 92.03 % 78.20 % 17.69 %
The Avant at Reston Town Center, Reston, VA 3, 4 359
Average Monthly Rental Rate $ 2,299 $ 2,352 (2.25) %
Average Rental Rate Per Occupied Square Foot $ 2.50 $ 2.57 (2.72) %
Average Physical Occupancy 96.29 % 89.69 % 7.36 %
Average Economic Occupancy 96.25 % 88.90 % 8.27 %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

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

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

4Excludes retail space.

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

Q3 2021
In-service property listing as of September 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,768,799 96.9 % $ 73.56
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 97.6 % 65.07
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,746 89.7 % 67.29
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,456 92.4 % 70.60
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 99.8 % 80.37
Prudential Center (retail shops) 3, 4 CBD Boston MA 1 597,963 74.5 % 99.10
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 56.89
The Hub on Causeway - Podium (50% ownership) 5 CBD Boston MA 1 382,497 80.3 % 69.51
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 77.83
Star Market at the Prudential Center 3 CBD Boston MA 1 57,236 100.0 % 61.07
Subtotal 10 7,766,777 93.5 % $ 72.05
145 Broadway East Cambridge MA 1 490,086 99.1 % $ 86.14
355 Main Street East Cambridge MA 1 259,640 99.3 % 77.15
90 Broadway East Cambridge MA 1 223,771 100.0 % 73.42
255 Main Street East Cambridge MA 1 215,394 97.5 % 87.11
300 Binney Street East Cambridge MA 1 195,191 100.0 % 59.87
150 Broadway East Cambridge MA 1 177,226 100.0 % 81.70
105 Broadway East Cambridge MA 1 152,664 100.0 % 69.78
250 Binney Street East Cambridge MA 1 67,362 100.0 % 47.46
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.54
Subtotal 9 1,976,616 99.4 % $ 74.96
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,136 74.6 % $ 44.45
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 81.5 % 37.67
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,991 99.4 % 42.53
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 56.63
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 84.8 % 40.30
230 CityPoint Route 128 Mass Turnpike MA 1 296,212 93.9 % 41.24
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 59.57
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 46.85
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 100.0 % 49.29
890 Winter Street Route 128 Mass Turnpike MA 1 174,472 50.1 % 45.82
153 & 211 Second Avenue 6 Route 128 Mass Turnpike MA 2 136,882 100.0 % 53.97
200 West Street 6, 7 Route 128 Mass Turnpike MA 1 134,921 70.3 % 55.39
1265 Main Street (50% ownership) 5 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.62
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 45.70
195 West Street Route 128 Mass Turnpike MA 1 63,500 100.0 % 42.00
The Point 3 Route 128 Mass Turnpike MA 1 16,300 84.7 % 57.26
191 Spring Street 8 Route 128 Northwest MA 1 170,997 100.0 % 44.69
Lexington Office Park Route 128 Northwest MA 2 166,779 61.3 % 30.71
201 Spring Street 8 Route 128 Northwest MA 1 106,300 100.0 % 45.32
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 65.88
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.21
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 50.00
181 Spring Street 8 Route 128 Northwest MA 1 55,793 100.0 % 44.03
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 44.37
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 49.69
Subtotal 32 5,007,589 87.6 % $ 45.88
Boston Office Total: 51 14,750,982 92.3 % $ 63.99
Residential
Hub50House (440 units) (50% ownership) 5, 6 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,258 Q3 2021
--- ---
In-service property listing (continued) as of September 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 55 15,659,500
LOS ANGELES
Office
Colorado Center (50% ownership) 5 West Los Angeles CA 6 1,129,730 89.6 % $ 70.07
Santa Monica Business Park (55% ownership) 5 West Los Angeles CA 14 1,102,468 76.7 % 65.98
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 72.24
Subtotal 27 2,306,602 83.4 % $ 68.36
Los Angeles Total: 27 2,306,602 83.4 % $ 68.36
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,957,284 91.3 % $ 163.54
601 Lexington Avenue (55% ownership) 6 Park Avenue NY 1 1,671,590 95.7 % 99.89
399 Park Avenue Park Avenue NY 1 1,576,874 96.7 % 101.24
599 Lexington Avenue Park Avenue NY 1 1,062,708 99.0 % 92.93
Times Square Tower (55% ownership) Times Square NY 1 1,225,413 84.6 % 79.39
250 West 55th Street Times Square / West Side NY 1 966,979 98.7 % 98.94
Dock 72 (50% ownership) 5, 6 Brooklyn NY 1 668,625 33.1 % 60.58
510 Madison Avenue Fifth/Madison Avenue NY 1 353,800 99.0 % 140.44
Subtotal 8 9,483,273 89.9 % $ 110.66
510 Carnegie Center Princeton NJ 1 234,160 — % $ —
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 36.00
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.46
212 Carnegie Center Princeton NJ 1 151,355 74.9 % 38.96
214 Carnegie Center Princeton NJ 1 146,799 51.6 % 35.27
506 Carnegie Center Princeton NJ 1 138,616 82.1 % 37.90
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 42.23
202 Carnegie Center Princeton NJ 1 134,068 91.2 % 41.44
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.31
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.28
101 Carnegie Center Princeton NJ 1 121,620 100.0 % 39.22
502 Carnegie Center Princeton NJ 1 121,460 97.6 % 39.47
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.14
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 39.25
103 Carnegie Center Princeton NJ 1 96,332 64.1 % 33.42
105 Carnegie Center Princeton NJ 1 69,955 56.6 % 32.65
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 36.06
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 38.37
201 Carnegie Center Princeton NJ — 6,500 100.0 % 37.26
Subtotal 18 2,263,400 77.1 % $ 38.50
New York Total: 26 11,746,673 87.5 % $ 98.40
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 104.67
Embarcadero Center Four CBD San Francisco CA 1 941,166 93.4 % 84.87
Embarcadero Center One CBD San Francisco CA 1 831,603 81.9 % 79.01
Embarcadero Center Two CBD San Francisco CA 1 801,378 87.2 % 79.96 Q3 2021
--- ---
In-service property listing (continued) as of September 30, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
Embarcadero Center Three CBD San Francisco CA 1 786,752 87.7 % 81.52
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 70.70
535 Mission Street CBD San Francisco CA 1 307,235 90.0 % 85.56
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 67.65
Subtotal 9 5,639,689 92.1 % $ 86.95
Gateway Commons (52% ownership) 5 South San Francisco CA 6 1,080,751 69.7 % $ 59.31
Mountain View Research Park Mountain View CA 15 542,264 82.0 % 69.98
2440 West El Camino Real Mountain View CA 1 146,789 100.0 % 83.36
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 39.96
North First Business Park 9 San Jose CA 5 190,636 55.2 % 27.35
Subtotal 28 1,990,060 74.0 % $ 62.40
San Francisco Office Total: 37 7,629,749 87.3 % $ 81.52
Residential
The Skylyne (402 units) 6 CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 38 7,960,745
SEATTLE
Office
Safeco Plaza (33.67% ownership) 5, 6 CBD Seattle WA 1 765,139 90.9 % $ 43.63
Subtotal 1 765,139 90.9 % $ 43.63
Seattle Total: 1 765,139 90.9 % $ 43.63
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 5 East End Washington DC 1 657,481 65.2 % $ 68.60
901 New York Avenue (25% ownership) 5 East End Washington DC 1 541,743 74.4 % 68.93
601 Massachusetts Avenue East End Washington DC 1 478,818 97.3 % 87.44
Market Square North (50% ownership) 5 East End Washington DC 1 417,989 77.9 % 70.40
2200 Pennsylvania Avenue CBD Washington DC 1 458,831 96.3 % 91.30
1330 Connecticut Avenue CBD Washington DC 1 253,941 89.9 % 72.56
Sumner Square CBD Washington DC 1 209,556 93.7 % 55.47
500 North Capitol Street, N.W. (30% ownership) 5 Capitol Hill Washington DC 1 230,900 98.5 % 80.75
Capital Gallery Southwest Washington DC 1 176,809 97.1 % 57.10
Subtotal 9 3,426,068 84.3 % $ 74.92
South of Market Reston VA 3 623,250 82.3 % $ 54.91
Fountain Square Reston VA 2 505,333 76.2 % 54.84
One Freedom Square Reston VA 1 430,523 71.8 % 50.78
Two Freedom Square Reston VA 1 423,222 100.0 % 47.40
One and Two Discovery Square Reston VA 2 366,989 100.0 % 51.28
One Reston Overlook Reston VA 1 319,519 100.0 % 46.51
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 64.96
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.45
Democracy Tower Reston VA 1 259,441 97.7 % 59.89
Fountain Square Retail 3 Reston VA 1 216,591 80.6 % 40.43
Two Reston Overlook Reston VA 1 134,615 100.0 % 48.00
Subtotal 16 3,816,338 89.5 % $ 52.01
Wisconsin Place Office Montgomery County MD 1 299,248 85.6 % $ 60.20
Shady Grove Bio+Tech Campus 6, 9 North Rockville MD 4 233,452 64.4 % 18.23
Kingstowne Two Springfield VA 1 155,995 87.2 % 37.91 Q3 2021
--- ---
In-service property listing (continued) as of September 30, 2021
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
Kingstowne One Springfield VA 1 153,401 58.5 % 39.02
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 33.94
7435 Boston Boulevard Springfield VA 1 103,557 43.7 % 22.90
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail 3 Springfield VA 1 88,244 94.3 % 42.17
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.60
7501 Boston Boulevard Springfield VA 1 75,756 100.0 % 37.28
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 18.17
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 19.52
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.62
7451 Boston Boulevard Springfield VA 1 45,949 65.3 % 19.06
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 24.00
7375 Boston Boulevard Springfield VA 1 26,865 44.5 % 23.90
Subtotal 19 1,663,761 76.4 % $ 34.79
Washington, DC Office Total: 44 8,906,167 85.1 % $ 57.82
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: 46 9,779,324
Total In-Service Properties: 193 48,217,983 88.4 % 10 $ 74.25 10

_____________

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

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

3This is a retail property.

4Includes 145,849 square feet at Prudential Center (retail shops) of leases terminated by the Company where the tenant is still occupying the space.

5This is an unconsolidated joint venture property.

6Not included in the Same Property analysis. The Company’s One Five Nine East 53rd Street development project, the low-rise portion of 601 Lexington Avenue, was fully placed in-service in February 2021 and excluded from the Company’s Same Property analysis.

7A portion of this property is under redevelopment. For additional detail, see page 14.

8The property was sold on October 25, 2021.

9Property held for redevelopment.

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

Q3 2021
Top 20 tenants listing and portfolio tenant diversification

as of September 30, 2021

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.56 % 10.3
2 Arnold & Porter Kaye Scholer 2.70 % 12.6
3 Akamai Technologies 2.21 % 13.1
4 Biogen 1.79 % 5.1
5 Shearman & Sterling 1.60 % 12.2
6 Ropes & Gray 1.52 % 8.6
7 Kirkland & Ellis 1.51 % 15.8
8 Google 1.38 % 15.9
9 WeWork 1.36 % 12.0
10 Microsoft 1.33 % 10.4
11 Millennium Management 1.23 % 9.3
12 Weil Gotshal & Manges 1.22 % 12.6
13 Wellington Management 1.15 % 11.6
14 Aramis (Estee Lauder) 1.07 % 15.9
15 US Government 0.96 % 4.8
16 Morrison & Foerster 0.92 % 9.0
17 O'Melveny & Myers 0.88 % 3.2
18 Bank of America 0.84 % 13.7
19 Mass Financial Services 0.83 % 6.4
20 Hunton Andrews Kurth 0.80 % 4.8
BXP’s Share of Annualized Rental Obligations 28.86 %
BXP’s Share of Square Feet 1 23.08 %
Weighted Average Remaining Lease Term (years) 10.8

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
Marriott International 7750 Wisconsin Avenue 734,000
Fannie Mae Reston Next 703,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Volkswagen Group of America Reston Next 196,000
Translate Bio 200 West Street 138,000

TENANT DIVERSIFICATION 2

chart-5cbb36c8f7b648d3a1cb.jpg

_____________

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

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

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

Q3 2021
Occupancy by location

as of September 30, 2021

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

CBD Suburban Total
Location 30-Sep-21 30-Jun-21 30-Sep-21 30-Jun-21 30-Sep-21 30-Jun-21
Boston 94.7 % 95.5 % 87.6 % 87.8 % 92.3 % 92.9 %
Los Angeles 83.4 % 83.9 % — % — % 83.4 % 83.9 %
New York 89.9 % 89.7 % 77.1 % 76.7 % 87.5 % 87.2 %
San Francisco 92.1 % 92.5 % 74.0 % 73.4 % 87.3 % 87.6 %
Seattle 2 90.9 % N/A — % N/A 90.9 % N/A
Washington, DC 84.3 % 83.6 % 85.5 % 86.4 % 85.1 % 85.3 %
Total Portfolio 90.7 % 90.9 % 83.4 % 83.6 % 88.4 % 88.6 %

chart-cac031d9a7dc4ed2a43b.jpg

SAME PROPERTY OFFICE PROPERTIES 1, 3 - Year-over-Year

CBD Suburban Total
Location 30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20 30-Sep-21 30-Sep-20
Boston 94.7 % 98.7 % 87.3 % 87.5 % 92.2 % 95.0 %
Los Angeles 83.4 % 96.7 % — % — % 83.4 % 96.7 %
New York 94.3 % 94.2 % 77.1 % 76.5 % 90.7 % 90.5 %
San Francisco 92.1 % 95.8 % 74.0 % 78.7 % 87.3 % 91.4 %
Seattle 2 — % N/A — % N/A — % N/A
Washington, DC 84.3 % 84.6 % 86.5 % 83.9 % 85.6 % 84.2 %
Total Portfolio 92.0 % 95.1 % 83.5 % 83.3 % 89.2 % 91.2 %

chart-8259649146c744e6854b.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.

2The Company entered the Seattle market on September 1, 2021. Therefore, there is no occupancy information provided for prior periods.

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

Q3 2021
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 2,918,725
Unsecured Line of Credit —
Unsecured Senior Notes, at face value 10,550,000
Outstanding Principal 13,468,725
Discount on Unsecured Senior Notes (17,581)
Deferred Financing Costs, Net (72,794)
Consolidated Debt $ 13,378,350

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
601 Lexington Avenue (55% ownership) April 10, 2022 4.79% 4.75% $ 618,725
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 2,918,725

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
11 Year Unsecured Senior Notes 2 February 1, 2023 3.95% 3.85% $ 1,000,000
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
$ 10,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 3
Common Stock 156,206 156,206 $ 16,924,920
Common Operating Partnership Units 17,477 17,477 1,893,633
Total Equity 173,683 $ 18,818,553
Consolidated Debt (A) $ 13,378,350
Add: BXP’s share of unconsolidated joint venture debt 4 1,289,582
Less: Partners’ share of consolidated debt 5 1,190,479
BXP’s Share of Debt 6 (B) $ 13,477,453
Consolidated Market Capitalization (C) $ 32,196,903
BXP’s Share of Market Capitalization 6 (D) $ 32,296,006
Consolidated Debt/Consolidated Market Capitalization (A÷C) 41.55 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 6 (B÷D) 41.73 %

_____________

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

2On October 15, 2021, the Company redeemed these bonds in full at par plus accrued and unpaid interest and an early redemption premium.

3Values are based on the September 30, 2021 closing price of $108.35 per share of BXP common stock.

4Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 33.

5Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 31.

6See the Definitions and Reconciliations sections of this Supplemental package starting on page 52.

Q3 2021
Debt analysis 1

as of September 30, 2021

(dollars in thousands)

chart-e6a26ddb697b4a7ab51b.jpg

2021 2022 2023 2 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at September 30, 2021 Letters of Credit Remaining Capacity at September 30, 2021
Unsecured Line of Credit $ 1,500,000 $ — $ 6,348 $ 1,493,652

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 3 Maturity (years)
Unsecured Debt 78.33 % 3.40 % 3.48 % 6.3
Secured Debt 21.67 % 3.71 % 3.89 % 4.6
Consolidated Debt 100.00 % 3.47 % 3.57 % 5.9

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 3 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 100.00 % 3.47 % 3.57 % 5.9
Consolidated Debt 100.00 % 3.47 % 3.57 % 5.9

_____________

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

2On October 15, 2021, the Company redeemed $1.0 billion of its 3.85% unsecured senior notes, which were scheduled to mature in February 2023, at par plus accrued and unpaid interest and an early redemption premium.

3The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.

Q3 2021
Senior unsecured debt covenant compliance ratios

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

This section presents such ratios as of September 30, 2021 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 47.0 % 43.7 %
Secured Debt/Total Assets Less than 50% 13.8 % 12.8 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.00 4.00
Unencumbered Assets/ Unsecured Debt Greater than 150% 229.8 % 250.9 %

_____________

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

Q3 2021
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
30-Sep-21 30-Jun-21
Net income attributable to Boston Properties, Inc. $ 108,297 $ 111,703
Add:
Noncontrolling interest - common units of the Operating Partnership 11,982 12,383
Noncontrolling interest in property partnerships 18,971 17,164
Net income 139,250 141,250
Add:
Interest expense 105,794 106,319
Depreciation and amortization expense 179,412 183,838
Less:
Gains on sales of real estate 348 7,756
Loss from unconsolidated joint ventures (5,597) (1,373)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 24,121 25,375
EBITDAre 1 453,826 450,399
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 47,740 46,222
BXP’s Share of EBITDAre 1 (A) 406,086 404,177
Add:
Stock-based compensation expense 8,440 13,993
BXP’s Share of straight-line ground rent expense adjustment 1 996 698
BXP’s Share of lease transaction costs that qualify as rent inducements 1 3,379 (132)
Less:
BXP’s Share of straight-line rent 1 35,811 30,855
BXP’s Share of fair value lease revenue 1 1,793 1,193
BXP’s Share of EBITDAre – cash 1 $ 381,297 $ 386,688
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,624,344 $ 1,616,708

Reconciliation of BXP’s Share of Net Debt 1

30-Sep-21 30-Jun-21
Consolidated debt $ 13,378,350 $ 12,536,065
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 1,002,728 557,307
Cash held in escrow for 1031 exchange — —
Net debt 1 12,375,622 11,978,758
Add:
BXP’s share of unconsolidated joint venture debt 2 1,289,582 1,190,473
Partners’ share of cash and cash equivalents from consolidated joint ventures 123,115 143,868
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 95,224 90,535
Partners’ share of consolidated joint venture debt 3 1,190,479 1,191,879
BXP’s Share of Net Debt 1 (B) $ 12,502,616 $ 12,030,685
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.70 7.44

_____________

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

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended September 30, 2021, see pages 33 and 60.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended September 30, 2021, see pages 31 and 58.

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

Q3 2021
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Sep-21 30-Jun-21
BXP’s Share of interest expense 1 $ 105,713 $ 105,772
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,587 3,673
Adjusted interest expense excluding capitalized interest (A) 100,680 100,653
Add:
BXP’s Share of capitalized interest 1 12,375 14,066
Adjusted interest expense including capitalized interest (B) $ 113,055 $ 114,719
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 381,297 $ 386,688
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.79 3.84
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.37 3.37

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Sep-21 30-Jun-21
BXP’s Share of interest expense 1 $ 105,713 $ 105,772
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,587 3,673
Add:
BXP’s Share of capitalized interest 1 12,375 14,066
BXP’s Share of maintenance capital expenditures 1 16,800 22,145
Hotel improvements, equipment upgrades and replacements 3 3
Total Fixed Charges (A) $ 129,858 $ 136,867
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 381,297 $ 386,688
Fixed Charge Coverage Ratio (B÷A) 2.94 2.83

_____________

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

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

Q3 2021
Consolidated joint ventures

d

as of September 30, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,194,362 $ 2,271,290 $ 5,465,652
Cash and cash equivalents 131,645 156,570 288,215
Other assets 298,996 355,626 654,622
Total assets $ 3,625,003 $ 2,783,486 $ 6,408,489
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,280,110 $ 618,556 $ 2,898,666
Other liabilities 90,500 98,792 189,292
Total liabilities 2,370,610 717,348 3,087,958
Equity:
Boston Properties, Inc. 754,187 838,127 1,592,314
Noncontrolling interests 500,206 1,228,011 1,728,217 2
Total equity 1,254,393 2,066,138 3,320,531
Total liabilities and equity $ 3,625,003 $ 2,783,486 $ 6,408,489
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 52,658 $ 70,457 $ 123,115
Partners’ share of consolidated debt 3 $ 912,128 4 $ 278,351 $ 1,190,479

_____________

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.

Q3 2021
Consolidated joint ventures (continued)

for the three months ended September 30, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,286 $ 92,357 $ 167,643
Straight-line rent 1,864 6,549 8,413
Fair value lease revenue (28) 81 53
Termination income — 22 22
Total lease revenue 77,122 99,009 176,131
Parking and other — 1,198 1,198
Insurance proceeds — 2,241 2 2,241
Total rental revenue 3 77,122 102,448 179,570
Expenses
Operating 29,107 33,569 62,676
Restoration expenses related to insurance claim — 2,241 2 2,241
Total expenses 29,107 35,810 64,917
Net Operating Income (NOI) 48,015 66,638 114,653
Other income (expense)
Development and management services revenue — 4 4
Interest and other income — 90 90
Interest expense (21,324) (7,712) (29,036)
Depreciation and amortization expense (15,751) (22,246) (37,997)
General and administrative expense (89) (61) (150)
Total other income (expense) (37,164) (29,925) (67,089)
Net income $ 10,851 $ 36,713 $ 47,564

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 $ 10,851 $ 36,713 $ 47,564
Add: Depreciation and amortization expense 15,751 22,246 37,997
Entity FFO $ 26,602 $ 58,959 $ 85,561
Partners’ NCI 4 $ 3,406 $ 15,565 $ 18,971
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 6,595 10,178 16,773
Partners’ share FFO 4 $ 10,001 $ 25,743 $ 35,744
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,445 $ 21,148 $ 28,593
Depreciation and amortization expense - BXP’s basis difference 60 389 449
BXP’s share of depreciation and amortization expense 9,096 11,679 20,775
BXP’s share of FFO $ 16,601 $ 33,216 $ 49,817

_____________

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

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

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

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

Q3 2021
Unconsolidated joint ventures 1

as of September 30, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 56,714 147,791 September 5, 2023 1.59 % 1.81 %
Podium 50.00 % 48,970 86,884 September 6, 2023 2.34 % 2.50 %
Hub50House 50.00 % 47,934 88,085 April 19, 2022 2.08 % 2.37 %
Hotel Air Rights 50.00 % 11,402 — — — % — %
1265 Main Street 50.00 % 3,855 18,204 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 155,679 163,899 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 230,535 274,699 August 9, 2027 3.56 % 3.58 %
Beach Cities Media Center 50.00 % 27,124 — — — % — %
New York
Dock 72 3 50.00 % 29,230 97,617 December 18, 2023 3.10 % 3.32 %
3 Hudson Boulevard 4 25.00 % 116,537 19,972 July 13, 2023 3.59 % 3.67 %
San Francisco
Platform 16 55.00 % 108,098 — — — % — %
Gateway Commons 5 50.00 % 328,367 — — — % — %
Seattle
Safeco Plaza 33.67 % 72,570 83,570 September 1, 2026 2.35 % 2.50 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 59,734 102,933 April 26, 2023 1.34 % 1.88 %
1001 6th Street 50.00 % 42,669 — — — % — %
Market Square North 50.00 % (1,917) 62,076 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 34,104 — — — % — %
500 North Capitol Street, N.W. 30.00 % (7,700) 31,470 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,390) 54,318 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (14,568) 58,064 July 7, 2022 5.40 % 6.90 %
1,336,947
Investments with deficit balances reflected within Other Liabilities 36,575
Investments in Unconsolidated Joint Ventures $ 1,373,522
Mortgage/Construction Loans Payable, Net $ 1,289,582

chart-e1e88db759494463976b.jpg

Q3 2021
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 57.93 % 2.43 % 2.78 % 2.2
Fixed Rate Debt 42.07 % 3.76 % 3.84 % 4.9
Total Debt 100.00 % 2.99 % 3.22 % 3.3

_____________

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

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

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

4 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.

5 As a result of the partner’s deferred contribution, the Company owned an approximately 52% interest in the joint venture at September 30, 2021. Future development projects will be owned 49% by the Company and 51% by its partner.

Q3 2021
Unconsolidated joint ventures (continued)

for the three months ended September 30, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 11,786 $ 28,191 $ 3,621 $ 11,869 $ 2,336 $ 21,656 $ 79,459
Straight-line rent 763 4,375 181 376 188 (420) 5,463
Fair value lease revenue — 337 — 40 385 — 762
Termination income — (34) — — — — (34)
Total lease revenue 12,549 32,869 3,802 12,285 2,909 21,236 85,650
Parking and other 12 2,438 — 1 127 1,436 4,014
Total rental revenue 3 12,561 35,307 3,802 12,286 3,036 22,672 89,664
Expenses
Operating 5,632 12,847 3,897 5,084 1,042 11,666 40,168
Net operating income/(loss) 6,929 22,460 (95) 7,202 1,994 11,006 49,496
Other income/(expense)
Development and management services revenue — — 338 — — — 338
Interest and other income — 5 — 2 — — 7
Interest expense (2,699) (12,002) (2,926) (3) (516) (9,373) (27,519)
Depreciation and amortization expense (5,001) (12,596) (2,744) (5,852) (1,690) (8,153) (36,036)
General and administrative expense (19) (113) — (2) — (76) (210)
Total other income/(expense) (7,719) (24,706) (5,332) (5,855) (2,206) (17,602) (63,420)
Net income/(loss) $ (790) $ (2,246) $ (5,427) $ 1,347 $ (212) $ (6,596) $ (13,924)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (395) $ (1,395) $ (2,263) $ 684 $ (71) $ (1,051) 4 $ (4,491)
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 7 6 $ — $ — $ 98
Fair value lease revenue — 301 5 — (227) 6 — — 74
Termination income — — — — — — —
Depreciation and amortization expense (23) (1,035) 5 376 (525) 6 — (71) (1,278)
Total basis differential 7 (23) (643) 5 376 (745) 6 — (71) (1,106)
Income/(loss) from unconsolidated joint ventures (418) (2,038) (1,887) (61) (71) (1,122) 4 (5,597)
Add:
BXP’s share of depreciation and amortization expense 2,523 7,712 996 3,347 569 2,656 4 17,803
BXP’s share of FFO $ 2,105 $ 5,674 $ (891) $ 3,286 $ 498 $ 1,534 $ 12,206

_____________

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

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

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

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

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

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

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

Q3 2021
Lease expirations - All in-service properties1, 2, 3

as of September 30, 2021

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 450,816 22,943,525 54.86 1.10 % 4
2022 2,748,107 146,299,839 62.87 6.14 %
2023 2,333,407 138,278,012 68.12 5.35 %
2024 3,764,669 211,659,459 63.18 8.83 %
2025 2,616,276 158,057,663 65.94 6.32 %
2026 3,252,170 200,026,843 74.86 7.05 %
2027 2,280,559 134,318,623 65.54 5.40 %
2028 2,974,055 167,809,820 69.47 6.37 %
2029 2,726,136 166,333,504 69.90 6.28 %
2030 2,307,411 164,034,467 73.80 5.86 %
Thereafter 13,303,609 859,738,518 80.08 28.31 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 165,332 5,225,208 31.78 7.17 %
2022 141,001 11,142,985 80.89 6.01 %
2023 145,164 8,521,067 59.18 6.28 %
2024 160,598 15,059,685 99.00 6.64 %
2025 99,599 6,731,072 77.81 3.77 %
2026 116,327 17,584,089 168.57 4.55 %
2027 118,989 13,326,199 122.74 4.74 %
2028 64,504 7,891,133 128.88 2.67 %
2029 131,892 10,615,121 97.75 4.74 %
2030 196,925 11,260,483 70.80 6.94 %
Thereafter 616,949 58,475,282 125.25 20.37 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 616,148 28,168,733 48.35 1.45 % 4
2022 2,889,108 157,442,824 63.87 6.13 %
2023 2,478,571 146,799,079 67.52 5.41 %
2024 3,925,267 226,719,144 64.74 8.71 %
2025 2,715,875 164,788,735 66.35 6.18 %
2026 3,368,497 217,610,932 78.39 6.90 %
2027 2,399,548 147,644,822 68.42 5.37 %
2028 3,038,559 175,700,953 70.94 6.16 %
2029 2,858,028 176,948,625 71.12 6.19 %
2030 2,504,336 175,294,950 73.60 5.92 %
Thereafter 13,920,558 918,213,800 81.97 27.86 %

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 87,080 77,994 4
2022 978,601 919,950
2023 886,699 793,584
2024 924,148 893,885
2025 1,090,656 1,071,543
2026 830,183 798,872
2027 699,412 691,612
2028 1,153,153 1,153,153
2029 739,810 643,831
2030 1,273,120 1,266,447
Thereafter 4,433,965 3,543,617

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 147,826 147,824
2022 28,581 28,266
2023 44,835 44,835
2024 81,404 81,404
2025 38,874 38,874
2026 25,338 25,338
2027 73,941 67,627
2028 45,230 45,230
2029 56,791 55,441
2030 88,800 54,405
Thereafter 149,758 109,648

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 234,906 225,818 4
2022 1,007,182 948,216
2023 931,534 838,419
2024 1,005,552 975,289
2025 1,129,530 1,110,417
2026 855,521 824,210
2027 773,353 759,239
2028 1,198,383 1,198,383
2029 796,601 699,272
2030 1,361,920 1,320,852
Thereafter 4,583,723 3,653,265

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 13,017 13,017 4
Q4 2021 74,063 64,977
Total 2021 87,080 77,994
Q1 2022 132,698 125,909
Q2 2022 145,683 145,652
Q3 2022 157,250 154,518
Q4 2022 542,970 493,872
Total 2022 978,601 919,950

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 147,826 147,824
Total 2021 147,826 147,824
Q1 2022 7,783 7,468
Q2 2022 9,287 9,287
Q3 2022 11,511 11,511
Q4 2022 — —
Total 2022 28,581 28,266

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 13,017 13,017 4
Q4 2021 221,889 212,801
Total 2021 234,906 225,818
Q1 2022 140,481 133,377
Q2 2022 154,970 154,939
Q3 2022 168,761 166,029
Q4 2022 542,970 493,872
Total 2022 1,007,182 948,216

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 48,415 26,343
2023 94,066 51,736
2024 132,131 72,672
2025 11,419 6,280
2026 449,690 247,330
2027 — —
2028 301,388 155,984
2029 350,483 175,242
2030 — —
Thereafter 418,223 209,112

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 — —
2023 1,405 703
2024 4,333 2,283
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
Thereafter 17,993 8,997

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 48,415 26,343
2023 95,471 52,439
2024 136,464 74,955
2025 28,637 15,661
2026 455,517 250,535
2027 — —
2028 301,388 155,984
2029 388,601 196,207
2030 5,283 2,906
Thereafter 436,216 218,109

All values are in US Dollars.

_____________

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

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

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

Q3 2021
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 1,809 995
Q2 2022 18,031 9,917
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 48,415 26,343

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 — —
Total 2021 — —
Q1 2022 1,809 995
Q2 2022 18,031 9,917
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 48,415 26,343

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 52.

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

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

Q3 2021
Lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 87,527 77,013 4
2022 661,152 539,011
2023 378,593 290,409
2024 1,306,941 1,062,928
2025 589,995 524,535
2026 734,286 540,759
2027 476,235 396,094
2028 273,412 251,366
2029 654,531 624,752
2030 621,349 588,092
Thereafter 4,053,343 3,029,902

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 2,562 1,823
2022 27,093 27,022
2023 — —
2024 11,244 8,623
2025 — —
2026 22,954 19,030
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
Thereafter 285,969 206,690

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 90,089 78,836 4
2022 688,245 566,033
2023 378,593 290,409
2024 1,318,185 1,071,551
2025 589,995 524,535
2026 757,240 559,789
2027 476,235 396,094
2028 273,412 251,366
2029 657,666 627,887
2030 624,244 590,145
Thereafter 4,339,312 3,236,592

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2021
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 5,394 5,394 4
Q4 2021 82,133 71,619
Total 2021 87,527 77,013
Q1 2022 85,426 69,778
Q2 2022 75,077 59,431
Q3 2022 360,550 269,703
Q4 2022 140,099 140,099
Total 2022 661,152 539,011

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 2,562 1,823
Total 2021 2,562 1,823
Q1 2022 — —
Q2 2022 178 107
Q3 2022 26,915 26,915
Q4 2022 — —
Total 2022 27,093 27,022

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 5,394 5,394 4
Q4 2021 84,695 73,442
Total 2021 90,089 78,836
Q1 2022 85,426 69,778
Q2 2022 75,255 59,538
Q3 2022 387,465 296,618
Q4 2022 140,099 140,099
Total 2022 688,245 566,033

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2021
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 125,377 120,652 4
2022 621,750 498,856
2023 651,916 594,739
2024 703,489 660,649
2025 493,849 484,105
2026 645,462 558,013
2027 456,486 453,163
2028 524,953 512,697
2029 259,888 241,604
2030 269,363 267,319
Thereafter 1,607,052 1,592,730

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,515 5,515
2022 29,454 29,454
2023 34,090 34,090
2024 7,175 7,175
2025 26,569 26,569
2026 12,928 12,928
2027 11,209 11,209
2028 9,722 9,722
2029 9,944 9,944
2030 4,590 4,590
Thereafter 45,578 45,578

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 130,892 126,167 64.42 4
2022 651,204 528,310
2023 686,006 628,829
2024 710,664 667,824
2025 520,418 510,674
2026 658,390 570,941
2027 467,695 464,372
2028 534,675 522,419
2029 269,832 251,548
2030 273,953 271,909
Thereafter 1,652,630 1,638,308

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2021
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 1,885 1,885 4
Q4 2021 123,492 118,767
Total 2021 125,377 120,652
Q1 2022 89,738 88,709
Q2 2022 315,457 202,800
Q3 2022 130,583 127,075
Q4 2022 85,972 80,272
Total 2022 621,750 498,856

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 5,515 5,515
Total 2021 5,515 5,515
Q1 2022 4,816 4,816
Q2 2022 — —
Q3 2022 1,834 1,834
Q4 2022 22,804 22,804
Total 2022 29,454 29,454

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 1,885 1,885 4
Q4 2021 129,007 124,282
Total 2021 130,892 126,167
Q1 2022 94,554 93,525
Q2 2022 315,457 202,800
Q3 2022 132,417 128,909
Q4 2022 108,776 103,076
Total 2022 651,204 528,310

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2021
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 142,730 139,857 4
2022 370,574 320,232
2023 301,647 292,646
2024 662,957 648,093
2025 410,503 303,968
2026 592,549 526,888
2027 648,426 508,590
2028 213,790 171,534
2029 721,424 694,150
2030 143,579 100,907
Thereafter 2,766,159 2,351,818

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 9,155 9,155
2022 55,873 53,012
2023 64,834 64,358
2024 55,402 52,281
2025 16,938 11,679
2026 45,594 42,570
2027 33,839 29,737
2028 9,552 6,276
2029 23,904 19,107
2030 95,357 95,082
Thereafter 117,651 95,959

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 151,885 149,012 4
2022 426,447 373,244
2023 366,481 357,004
2024 718,359 700,374
2025 427,441 315,647
2026 638,143 569,458
2027 682,265 538,327
2028 223,342 177,810
2029 745,328 713,257
2030 238,936 195,989
Thereafter 2,883,810 2,447,777

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 81,340 81,340 4
Q4 2021 61,390 58,517
Total 2021 142,730 139,857
Q1 2022 75,705 49,546
Q2 2022 100,941 100,941
Q3 2022 84,529 60,346
Q4 2022 109,399 109,399
Total 2022 370,574 320,232

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 — —
Q4 2021 9,155 9,155
Total 2021 9,155 9,155
Q1 2022 11,519 11,519
Q2 2022 18,737 16,510
Q3 2022 2,816 2,816
Q4 2022 22,801 22,167
Total 2022 55,873 53,012

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 81,340 81,340 4
Q4 2021 70,545 67,672
Total 2021 151,885 149,012
Q1 2022 87,224 61,065
Q2 2022 119,678 117,451
Q3 2022 87,345 63,162
Q4 2022 132,200 131,566
Total 2022 426,447 373,244

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Lease expirations - CBD properties 1, 2, 3

as of September 30, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 187,478 178,390 4
2022 310,178 251,212
2023 573,793 480,678
2024 459,384 429,121
2025 341,017 321,904
2026 621,839 590,528
2027 416,801 402,686
2028 942,650 942,650
2029 506,029 408,700
2030 1,280,982 1,239,914
Thereafter 3,897,217 3,024,243

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 — —
2022 48,415 26,343
2023 95,471 52,439
2024 136,464 74,955
2025 28,637 15,662
2026 455,517 250,534
2027 — —
2028 301,388 155,984
2029 388,601 196,206
2030 5,283 2,906
Thereafter 436,216 218,108

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 46,237 34,985 4
2022 575,054 452,842
2023 332,074 243,890
2024 825,580 578,946
2025 364,256 298,796
2026 520,274 322,823
2027 256,729 176,588
2028 216,656 194,610
2029 601,873 572,094
2030 577,070 542,971
Thereafter 4,138,296 3,035,576

All values are in US Dollars.

Q3 2021
Lease expirations - CBD properties (continued) 1, 2, 3

as of September 30, 2021

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 29,600 29,600 4
2022 354,840 354,840
2023 386,183 386,183
2024 518,196 518,196
2025 306,704 306,704
2026 483,491 483,491
2027 378,708 378,708
2028 510,163 510,163
2029 233,264 233,264
2030 269,865 269,865
Thereafter 1,623,985 1,623,985

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 5,747 2,874 4
2022 173,925 120,722
2023 44,785 35,307
2024 179,282 161,297
2025 168,844 57,050
2026 354,193 285,508
2027 218,459 74,520
2028 169,494 123,962
2029 84,769 52,698
2030 65,835 22,888
Thereafter 1,396,531 960,498

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Lease expirations - Suburban properties 1, 2, 3

as of September 30, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 47,428 47,428 4
2022 697,004 697,004
2023 357,741 357,741
2024 546,168 546,168
2025 788,513 788,513
2026 233,682 233,682
2027 356,552 356,552
2028 255,733 255,733
2029 290,572 290,572
2030 80,938 80,938
Thereafter 686,506 629,022

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 43,852 43,852 4
2022 113,191 113,191
2023 46,519 46,519
2024 492,605 492,605
2025 225,739 225,739
2026 236,966 236,966
2027 219,506 219,506
2028 56,756 56,756
2029 55,793 55,793
2030 47,174 47,174
Thereafter 201,016 201,016

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 101,292 96,567 4
2022 296,364 173,470
2023 299,823 242,646
2024 192,468 149,628
2025 213,714 203,970
2026 174,899 87,450
2027 88,987 85,664
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
Thereafter 28,645 14,323

All values are in US Dollars.

Q3 2021
Lease expirations - Suburban properties (continued) 1, 2, 3

as of September 30, 2021

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 146,138 146,138 4
2022 252,522 252,522
2023 321,696 321,696
2024 539,077 539,077
2025 258,597 258,597
2026 283,950 283,950
2027 463,806 463,806
2028 53,848 53,848
2029 660,559 660,559
2030 173,101 173,101
Thereafter 1,487,279 1,487,279

All values are in US Dollars.

_____________

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

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

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

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

Q3 2021
Research coverage

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

Equity Research Coverage
Argus Research Company Angus Kelleher 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs & Company, Inc. Caitlin Burrows 801.741.5459
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Peter Abramowitz / Jonathan Peterson 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Craig Mailman / Jordan Sadler 917.368.2316 / 917.368.2280
Mizuho Securities Haendel St. Juste 212.205.7860
Morgan Stanley Ronald Kamden 212.296.8319
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb / Daniel Santos 212.466.7937 / 212.466.7927
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 Brent Dilts 212.713.1841
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
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Bank of America Merrill Lynch Andrew Molloy 646.855.6435
Barclays Peter Troisi 212.412.3695
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.715.8455 / 704.410.3252 Rating Agencies
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Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q3 2021
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Definitions

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

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

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q3 2021
Definitions (continued)

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q3 2021
Definitions (continued)

Funds from Operations (FFO)

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

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

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q3 2021
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q3 2021
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Sep-21 30-Jun-21
Revenue $ 730,056 $ 713,807
Partners’ share of revenue from consolidated joint ventures (JVs) (76,953) (73,473)
BXP’s share of revenue from unconsolidated JVs 43,210 42,939
BXP’s Share of revenue $ 696,313 $ 683,273
Straight-line rent $ 36,675 $ 31,267
Partners’ share of straight-line rent from consolidated JVs (3,693) (2,966)
BXP’s share of straight-line rent from unconsolidated JVs 2,829 2,554
BXP’s Share of straight-line rent $ 35,811 $ 30,855
Fair value lease revenue 1 $ 1,408 $ 731
Partners’ share of fair value lease revenue from consolidated JVs 1 (25) 182
BXP’s share of fair value lease revenue from unconsolidated JVs 1 410 280
BXP’s Share of fair value lease revenue 1 $ 1,793 $ 1,193
Lease termination income $ 1,874 $ 5,355
Partners’ share of termination income from consolidated JVs (10) 3
BXP’s share of termination income from unconsolidated JVs (17) 709
BXP’s Share of termination income $ 1,847 $ 6,067
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 $ 21,266 $ 17,864
Partners’ share of parking and other revenue from consolidated JVs (539) (450)
BXP’s share of parking and other revenue from unconsolidated JVs 1,831 1,751
BXP’s Share of parking and other revenue $ 22,558 $ 19,165
Cash rent abatements and deferrals related to COVID-19 $ 8,042 $ 7,754
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs 27 (653)
BXP’s share of cash rent abatements and deferrals related to COVID-19 from unconsolidated JVs (6) 765
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 8,063 $ 7,866
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446
Straight-line ground rent expense adjustment 2 $ 788 $ 464
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 208 234
BXP’s Share of straight-line ground rent expense adjustment $ 996 $ 698
Depreciation and amortization $ 179,412 $ 183,838
Noncontrolling interests in property partnerships’ share of depreciation and amortization (16,773) (17,113)
BXP’s share of depreciation and amortization from unconsolidated JVs 17,803 15,350
BXP’s Share of depreciation and amortization $ 180,442 $ 182,075 Q3 2021
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
30-Sep-21 30-Jun-21
Lease transaction costs that qualify as rent inducements 3 $ 4,090 $ 826
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (1,078) (327)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 367 (631)
BXP’s Share of lease transaction costs that qualify as rent inducements 2 $ 3,379 $ (132)
2nd generation tenant improvements and leasing commissions $ 28,253 $ 75,305
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (3,356) (4,541)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 929 11,712
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 25,826 $ 82,476 Maintenance capital expenditures 4 $ 17,779 $ 23,851
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (1,171) (2,086)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 192 380
BXP’s Share of maintenance capital expenditures 3 $ 16,800 $ 22,145
Interest expense $ 105,794 $ 106,319
Partners’ share of interest expense from consolidated JVs (11,996) (11,945)
BXP’s share of interest expense from unconsolidated JVs 11,915 11,398
BXP’s Share of interest expense $ 105,713 $ 105,772
Capitalized interest $ 11,586 $ 13,014
Partners’ share of capitalized interest from consolidated JVs (28) (13)
BXP’s share of capitalized interest from unconsolidated JVs 817 1,065
BXP’s Share of capitalized interest $ 12,375 $ 14,066
Amortization of financing costs $ 3,365 $ 3,368
Partners’ share of amortization of financing costs from consolidated JVs (382) (382)
BXP’s share of amortization of financing costs from unconsolidated JVs 604 687
BXP’s Share of amortization of financing costs $ 3,587 $ 3,673

_____________

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

2Excludes $(23.0) million of prepaid ground rent expense in connection with the ground lease at Sumner Square located in Washington, DC.

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

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

Q3 2021
Reconciliations (continued)

for the three months ended September 30, 2021

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,286 $ 92,357 $ 167,643
Straight-line rent 1,864 6,549 8,413
Fair value lease revenue (28) 81 53
Termination income — 22 22
Total lease revenue 77,122 99,009 176,131
Parking and other — 1,198 1,198
Insurance proceeds — 2,241 2 2,241
Total rental revenue 3 77,122 102,448 179,570
Expenses
Operating 29,107 33,569 62,676
Restoration expenses related to insurance claim — 2,241 2 2,241
Total expenses 29,107 35,810 64,917
Net Operating Income (NOI) 48,015 66,638 114,653
Other income (expense)
Development and management services revenue — 4 4
Interest and other income — 90 90
Interest expense (21,324) (7,712) (29,036)
Depreciation and amortization expense (15,751) (22,246) (37,997)
General and administrative expense (89) (61) (150)
Total other income (expense) (37,164) (29,925) (67,089)
Net income $ 10,851 $ 36,713 $ 47,564
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 4 $ 18,563 $ 29,237 $ 47,800
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,452 $ 37,401 $ 66,853
Unearned portion of capitalized fees 5 $ 183 $ 2,024 $ 2,207
Partners’ share of select items 4
Partners’ share of parking and other revenue $ — $ 539 $ 539
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 36 $ 382
Partners’ share of depreciation and amortization related to capitalized fees $ 319 $ 342 $ 661
Partners’ share of capitalized interest $ 28 $ — $ 28
Partners’ share of lease transaction costs that qualify as rent inducements $ 118 $ (1,196) $ (1,078)
Partners’ share of management and other fees $ 643 $ 750 $ 1,393
Partners’ share of basis differential depreciation and amortization expense $ (24) $ (175) $ (199)
Partners’ share of basis differential interest and other adjustments $ (4) $ 39 $ 35
Reconciliation of Partners’ share of EBITDAre 6
Partners’ NCI $ 3,406 $ 15,565 $ 18,971
Add:
Partners’ share of interest expense after BXP’s basis differential 8,526 3,470 11,996
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,595 10,178 16,773
Partners’ share of EBITDAre $ 18,527 $ 29,213 $ 47,740
Q3 2021
--- ---
Reconciliations (continued)

for the three months ended September 30, 2021

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 4 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 3 $ 30,849 $ 46,102 $ 76,951
Less: Termination income — 10 10
Rental revenue (excluding termination income) 3 30,849 46,092 76,941
Less: Operating expenses (including partners’ share of management and other fees) 12,286 16,865 29,151
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,563 $ 29,227 $ 47,790
Rental revenue (excluding termination income) 3 $ 30,849 $ 46,092 $ 76,941
Less: Straight-line rent 746 2,947 2 3,693
Fair value lease revenue (11) 36 25
Add: Lease transaction costs that qualify as rent inducements (118) 1,196 1,078
Subtotal 29,996 44,305 74,301
Less: Operating expenses (including partners’ share of management and other fees) 12,286 16,865 29,151
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 17,710 $ 27,440 $ 45,150
Reconciliation of Partners’ share of Revenue 4
Rental revenue 3 $ 30,849 $ 46,102 $ 76,951
Add: Development and management services revenue — 2 2
Revenue $ 30,849 $ 46,104 $ 76,953

_________

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

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

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

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

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

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

Q3 2021
Reconciliations (continued)

for the three months ended September 30, 2021

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 11,786 $ 28,191 $ 3,621 $ 11,869 $ 2,336 $ 21,656 $ 79,459
Straight-line rent 763 4,375 181 376 188 (420) 5,463
Fair value lease revenue — 337 — 40 385 — 762
Termination income — (34) — — — — (34)
Total lease revenue 12,549 32,869 3,802 12,285 2,909 21,236 85,650
Parking and other 12 2,438 — 1 127 1,436 4,014
Total rental revenue 3 12,561 35,307 3,802 12,286 3,036 22,672 89,664
Expenses
Operating 5,632 12,847 3,897 4 5,084 1,042 11,666 40,168
Net operating income/(loss) 6,929 22,460 (95) 7,202 1,994 11,006 49,496
Other income/(expense)
Development and management services revenue — — 338 — — — 338
Interest and other income — 5 — 2 — — 7
Interest expense (2,699) (12,002) (2,926) (3) (516) (9,373) (27,519)
Depreciation and amortization expense (5,001) (12,596) (2,744) (5,852) (1,690) (8,153) (36,036)
General and administrative expense (19) (113) — (2) — (76) (210)
Total other income/(expense) (7,719) (24,706) (5,332) (5,855) (2,206) (17,602) (63,420)
Net income/(loss) $ (790) $ (2,246) $ (5,427) $ 1,347 $ (212) $ (6,596) $ (13,924)
BXP’s share of parking and other revenue $ 6 $ 1,280 $ — $ 1 $ 43 $ 501 5 $ 1,831
BXP’s share of amortization of financing costs $ 138 $ 85 $ 75 $ — $ 9 $ 297 5 $ 604
BXP’s share of capitalized interest $ 544 $ — $ (90) $ — $ — $ 363 5 $ 817
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ (418) $ (2,038) $ (1,887) $ (61) $ (71) $ (1,122) 5 $ (5,597)
Add:
BXP’s share of interest expense 1,350 6,350 1,163 2 174 2,876 5 11,915
BXP’s share of depreciation and amortization expense 2,523 7,712 6 996 3,347 7 569 2,656 5 17,803
BXP’s share of EBITDAre $ 3,455 $ 12,024 6 $ 272 $ 3,288 7 $ 672 $ 4,410 5 $ 24,121 Q3 2021
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 6,280 $ 18,870 6 $ 1,900 $ 6,154 7 $ 1,022 $ 8,815 5 $ 43,041
BXP’s share of operating expenses 2,816 6,792 1,796 2,652 351 4,368 5 18,775
BXP’s share of net operating income/(loss) 3,464 12,078 6 104 3,502 7 671 4,447 5 24,266
Less:
BXP’s share of termination income — (17) — — — — (17)
BXP’s share of net operating income/(loss) (excluding termination income) 3,464 12,095 104 3,502 671 4,447 5 24,283
Less:
BXP’s share of straight-line rent 381 2,352 6 91 202 7 63 (260) 5 2,829
BXP’s share of fair value lease revenue — 486 6 — (206) 7 130 — 410
Add:
BXP’s share of straight-line ground rent expense adjustment — — 208 — — — 208
BXP’s share of lease transaction costs that qualify as rent inducements — 263 — — — 104 5 367
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 3,083 $ 9,520 6 $ 221 $ 3,506 7 $ 478 $ 4,811 5 $ 21,619
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 6,280 $ 18,870 6 $ 1,900 $ 6,154 7 $ 1,022 $ 8,815 5 $ 43,041
Add:
BXP’s share of development and management services revenue — — 169 — — — 169
BXP’s share of revenue $ 6,280 $ 18,870 6 $ 2,069 $ 6,154 7 $ 1,022 $ 8,815 5 $ 43,210

_____________

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

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

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

4 Includes approximately $417 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.

Q3 2021
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Jun-21 30-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 111,703 269,150
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,383 30,197
Noncontrolling interest in property partnerships 17,164 (767)
Net income 141,250 298,580
Add:
Interest expense 106,319 107,142
Depreciation and amortization expense 183,838 178,188
Transaction costs 751 332
Payroll and related costs from management services contracts 2,655 2,484
General and administrative expense 38,405 37,743
Less:
Interest and other income (loss) 1,452 1,305
Gains (losses) from investments in securities 2,275 4,552
Gains on sales of real estate 7,756 203,767
Income (loss) from unconsolidated joint ventures (1,373) 1,832
Direct reimbursements of payroll and related costs from management services contracts 2,655 2,484
Development and management services revenue 7,284 8,125
Net Operating Income (NOI) 453,169 402,404
Add:
BXP’s share of NOI from unconsolidated joint ventures 25,417 27,911
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 46,287 32,427
BXP’s Share of NOI 432,299 397,888
Less:
Termination income 5,355 3,309
BXP’s share of termination income from unconsolidated joint ventures 709 —
Add:
Partners’ share of termination income from consolidated joint ventures (3) 321
BXP’s Share of NOI (excluding termination income) $ 426,232 $ 394,900
Net Operating Income (NOI) $ 453,169 $ 402,404
Less:
Termination income 5,355 3,309
NOI from non Same Properties (excluding termination income) 7,268 6,624
Same Property NOI (excluding termination income) 440,546 392,471
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 46,290 32,106
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 1,463 (1,150)
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 24,708 27,911
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 592 1,445
BXP’s Share of Same Property NOI (excluding termination income) $ 419,835 $ 385,681
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 34,154
Change in BXP’s Share of Same Property NOI (excluding termination income) 8.9 %
Q3 2021
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Jun-21 30-Jun-20
Net income attributable to Boston Properties, Inc. common shareholders $ 111,703 $ 266,525
Preferred dividends — 2,625
Net income attributable to Boston Properties, Inc. 111,703 269,150
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 12,383 30,197
Noncontrolling interest in property partnerships 17,164 (767)
Net income 141,250 298,580
Add:
Interest expense 106,319 107,142
Depreciation and amortization expense 183,838 178,188
Transaction costs 751 332
Payroll and related costs from management services contracts 2,655 2,484
General and administrative expense 38,405 37,743
Less:
Interest and other income (loss) 1,452 1,305
Gains (losses) from investments in securities 2,275 4,552
Gains on sales of real estate 7,756 203,767
Income (loss) from unconsolidated joint ventures (1,373) 1,832
Direct reimbursements of payroll and related costs from management services contracts 2,655 2,484
Development and management services revenue 7,284 8,125
Net Operating Income (NOI) 453,169 402,404
Less:
Straight-line rent 31,267 17,024
Fair value lease revenue 731 2,159
Termination income 5,355 3,309
Add:
Straight-line ground rent expense adjustment 1 567 799
Lease transaction costs that qualify as rent inducements 2 826 1,616
NOI - cash (excluding termination income) 417,209 382,327
Less:
NOI - cash from non Same Properties (excluding termination income) 5,444 9,324
Same Property NOI - cash (excluding termination income) 411,765 373,003
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 43,833 33,522
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) 1,023 (166)
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 21,477 22,949
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 781 (76)
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 389,651 $ 362,340
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 27,311
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 7.5 %

_____________

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 $(103) and $152 for the three months ended June 30, 2021 and 2020, respectively. As of June 30, 2021, the Company has remaining lease payments aggregating approximately $25.6 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

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

Q3 2021
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Sep-20 30-Jun-20
Revenue
Lease $ 666,674 $ 630,119
Parking and other 16,327 13,946
Hotel revenue 90 99
Development and management services 7,281 8,125
Direct reimbursements of payroll and related costs from management services contracts 2,896 2,484
Total revenue 693,268 654,773
Expenses
Operating 120,833 109,448
Real estate taxes 137,222 130,415
Demolition costs 206 (76)
Hotel 3,164 1,973
General and administrative 27,862 37,743
Payroll and related costs from management services contracts 2,896 2,484
Transaction costs 307 332
Depreciation and amortization 166,456 178,188
Total expenses 458,946 460,507
Other income (expense)
Income (loss) from unconsolidated joint ventures (6,873) 1,832
Gains (losses) on sales of real estate (209) 203,767
Gains from investments in securities 1,858 4,552
Interest and other income (loss) (45) 1,305
Interest expense (110,993) (107,142)
Net income 118,060 298,580
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (15,561) 767
Noncontrolling interest - common units of the Operating Partnership (10,020) (30,197)
Net income attributable to Boston Properties, Inc. 92,479 269,150
Preferred dividends (2,625) (2,625)
Net income attributable to Boston Properties, Inc. common shareholders $ 89,854 $ 266,525
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.58 $ 1.71
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.58 $ 1.71

64

Document

Exhibit 99.2

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BOSTON PROPERTIES ANNOUNCES THIRD QUARTER 2021 RESULTS; REPORTS EPS OF $0.69 AND FFO PER SHARE OF $1.73

Provides Full Year 2022 Guidance, Enters Seattle as Sixth Market and Executes 1.4 Million Square Feet of Leases

BOSTON, MA, October 26, 2021 - Boston Properties, Inc. (NYSE: BXP), the largest publicly traded developer, owner, and manager of Class A office properties in the United States, reported results today for the third quarter ended September 30, 2021.

Financial highlights for the third quarter include:

•Revenue grew more than 5% to $730.1 million for the quarter ended September 30, 2021 as compared to $693.3 million for the quarter ended September 30, 2020.

•Net income attributable to common shareholders of $108.3 million, or $0.69 per diluted share (EPS), compared to $89.9 million, or $0.58 per diluted share, for the quarter ended September 30, 2020. The increase in EPS of $0.11 per diluted share primarily related to increased lease revenue and revenue from parking and hotel operations.

◦EPS of $0.69 per diluted share was $0.60 below the mid-point of the Company's third quarter guidance provided on July 27, 2021, primarily due to the deferral of the sale of the Spring Street Portfolio to the fourth quarter of 2021. Excluding the projected $0.65 gain on sales of real estate, EPS would have been $0.05 greater than the mid-point of the Company’s provided guidance.

•Funds from Operations (FFO) of $270.5 million, or $1.73 per diluted share, compared to FFO of $244.0 million, or $1.57 per diluted share, for the quarter ended September 30, 2020.

◦FFO of $1.73 per diluted share was $0.04 greater than the mid-point of the Company's third quarter guidance provided on July 27, 2021, primarily due to better-than- projected results from the Company’s in-service portfolio and improved parking revenue.

The Company provided guidance for full year 2021 with projected EPS of $3.11 - $3.13 and projected FFO of $6.50 - $6.52 per diluted share. Full year 2021 projected EPS and FFO includes an expected charge of $0.25 in the fourth quarter of 2021 related to the early redemption of $1.0 billion of 3.85% unsecured senior notes on October 15, 2021.

The Company provided guidance for full year 2022 with projected EPS of $2.97 - $3.17 and projected FFO of $7.25 - $7.45 per diluted share. See “EPS and FFO per Share Guidance” below.

Third quarter and recent business highlights include:

•Signed approximately 1.4 million square feet of leases in the third quarter with a weighted-average lease term of 9.3 years. Notable leases signed during the third quarter include:

–more–

◦a 524,000 square-foot, ten-year lease extension with Wellington Management at Atlantic Wharf, in Boston, Massachusetts,

◦a 79,000 square-foot new lease with a life sciences company at Bay Colony in Waltham, Massachusetts, and

◦a 39,000 square-foot lease expansion with a financial services company at 399 Park Avenue in New York, New York, which increased its total leased square footage to approximately 373,000 square feet.

•Acquired Safeco Plaza, an approximately 800,000 square-foot Class A office building in Seattle, Washington. This acquisition marks BXP’s initial entry into the Seattle market, one of the most vibrant markets in the U.S. for companies in the technology, life sciences, manufacturing and financial services sectors. Safeco Plaza is approximately 90% leased. The Company closed the acquisition on September 1, 2021, with two joint venture partners for a purchase price of approximately $465 million. Each partner has an approximately one-third ownership interest. The joint venture also obtained a $250 million mortgage loan secured by the property that bears interest at 30-day LIBOR (but not less than 0.15%) plus 2.20% per annum and matures September 1, 2026.

•Acquired Shady Grove Bio+Tech Campus, consisting of seven buildings totaling approximately 435,000 square feet in the Shady Grove area of Rockville, Maryland, a region that is home to more than 400 companies in the biotechnology and life sciences sector. The Company plans to convert the office buildings on the campus to lab to meet current and growing demand in the region from biotechnology companies for new, Class A lab space. The Company closed the acquisition on August 2, 2021 for a purchase price of approximately $116.5 million.

•Completed and delivered 440,000 square feet of space leased to an affiliate of Verizon Communications at 100 Causeway Street in Boston, Massachusetts on September 28, 2021. 100 Causeway is an approximately 632,000 square foot office building that the Company has a 50% ownership interest in.

•Completed and delivered approximately 285,000 square feet at Reston Next, a Class A office project with approximately 1.1 million net rentable square feet located in Reston, Virginia on October 19, 2021. This project is 85% pre-leased.

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

•Completed a green bond offering of $850.0 million of 2.450% unsecured senior notes maturing in 2033. This marks the Company’s fourth green bond offering and represents the lowest coupon ever issued by the Company in the unsecured bond market.

•Redeemed $1.0 billion of 3.85% unsecured senior notes that were scheduled to mature in February 2023. This redemption occurred on October 15, 2021, and the Company expects to recognize a loss from early extinguishment of debt of approximately $0.25 per diluted share in the fourth quarter of 2021 related primarily to the payment of the redemption premium.

–more–

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

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter ended September 30, 2021. In the opinion of management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

The Company’s guidance for the full year 2021 and full year 2022 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in this release and those referenced during the related conference call. Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of and/or refinancing of debt or resulting from hedging activity and derivatives), (3) possible future write-offs or reinstatements of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Full Year 2021 Full Year 2022
Low High Low High
Projected EPS (diluted) $ 3.11 $ 3.13 $ 2.97 $ 3.17
Add:
Projected Company share of real estate depreciation and amortization 4.14 4.14 4.28 4.28
Projected Company share of (gains)/losses on sales of real estate (0.75) (0.75) — —
Projected FFO per share (diluted) $ 6.50 $ 6.52 $ 7.25 $ 7.45

Boston Properties will host a conference call on Wednesday, October 27, 2021 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2021 results, provide a business update and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 1484189. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering

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the passcode 1484189. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

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

Boston Properties (NYSE: BXP) is the largest publicly traded developer, owner, and manager of Class A office properties in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires, and owns a diverse portfolio of primarily Class A office space. Including properties owned by unconsolidated joint ventures, the Company’s portfolio totals 52.5 million square feet and 202 properties, including nine properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

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

Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
September 30, 2021 December 31, 2020
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 22,088,835 $ 21,649,383
Construction in progress 1,054,531 868,773
Land held for future development 568,034 450,954
Right of use assets - finance leases 237,845 237,393
Right of use assets - operating leases 170,085 146,406
Less: accumulated depreciation (5,850,397) (5,534,102)
Total real estate 18,268,933 17,818,807
Cash and cash equivalents 1,002,728 1,668,742
Cash held in escrows 79,193 50,587
Investments in securities 41,517 39,457
Tenant and other receivables, net 61,269 77,411
Related party note receivable, net 78,144 77,552
Note receivables, net 19,297 18,729
Accrued rental income, net 1,203,840 1,122,502
Deferred charges, net 622,807 640,085
Prepaid expenses and other assets 97,560 33,840
Investments in unconsolidated joint ventures 1,373,522 1,310,478
Total assets $ 22,848,810 $ 22,858,190
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,898,699 $ 2,909,081
Unsecured senior notes, net 10,479,651 9,639,287
Unsecured line of credit — —
Unsecured term loan, net — 499,390
Lease liabilities - finance leases 243,562 236,492
Lease liabilities - operating leases 204,137 201,713
Accounts payable and accrued expenses 331,687 336,264
Dividends and distributions payable 169,739 171,082
Accrued interest payable 87,408 106,288
Other liabilities 370,403 412,084
Total liabilities 14,785,286 14,511,681
Commitments and contingencies — —
Redeemable deferred stock units 8,775 6,897
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 — 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,285,391 and 155,797,725 issued and 156,206,491 and 155,718,825 outstanding at September 30, 2021 and December 31, 2020, respectively 1,562 1,557
Additional paid-in capital 6,415,802 6,356,791
Dividends in excess of earnings (657,021) (509,653)
Treasury common stock at cost, 78,900 shares at September 30, 2021 and December 31, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (40,803) (49,890)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,716,818 5,996,083
Noncontrolling interests:
Common units of the Operating Partnership 609,830 616,596
Property partnerships 1,728,101 1,726,933
Total equity 8,054,749 8,339,612
Total liabilities and equity $ 22,848,810 $ 22,858,190

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Revenue
Lease $ 692,260 $ 666,674 $ 2,062,102 $ 2,006,904
Parking and other 23,507 16,327 58,727 54,777
Hotel revenue 5,189 90 7,382 7,014
Development and management services 6,094 7,281 20,181 23,285
Direct reimbursements of payroll and related costs from management services contracts 3,006 2,896 9,166 8,617
Total revenue 730,056 693,268 2,157,558 2,100,597
Expenses
Operating
Rental 258,281 258,261 764,373 761,014
Hotel 3,946 3,164 7,993 11,958
General and administrative 34,560 27,862 117,924 102,059
Payroll and related costs from management services contracts 3,006 2,896 9,166 8,617
Transaction costs 1,888 307 2,970 1,254
Depreciation and amortization 179,412 166,456 539,815 515,738
Total expenses 481,093 458,946 1,442,241 1,400,640
Other income (expense)
Income (loss) from unconsolidated joint ventures (5,597) (6,873) (1,745) (5,410)
Gains (losses) on sales of real estate 348 (209) 8,104 613,723
Interest and other income (loss) 1,520 (45) 4,140 4,277
Gains (losses) from investments in securities (190) 1,858 3,744 965
Losses from early extinguishment of debt — — (898) —
Interest expense (105,794) (110,993) (320,015) (319,726)
Net income 139,250 118,060 408,647 993,786
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (18,971) (15,561) (52,602) (34,280)
Noncontrolling interest—common units of the Operating Partnership (11,982) (10,020) (35,393) (97,090)
Net income attributable to Boston Properties, Inc. 108,297 92,479 320,652 862,416
Preferred dividends — (2,625) (2,560) (7,875)
Preferred stock redemption charge — — (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 108,297 $ 89,854 $ 311,680 $ 854,541
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.69 $ 0.58 $ 2.00 $ 5.49
Weighted average number of common shares outstanding 156,183 155,645 156,062 155,349
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.69 $ 0.58 $ 1.99 $ 5.49
Weighted average number of common and common equivalent shares outstanding 156,598 155,670 156,394 155,447

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2021 2020 2021 2020
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 108,297 $ 89,854 $ 311,680 $ 854,541
Add:
Preferred stock redemption charge — — 6,412 —
Preferred dividends — 2,625 2,560 7,875
Noncontrolling interest - common units of the Operating Partnership 11,982 10,020 35,393 97,090
Noncontrolling interests in property partnerships 18,971 15,561 52,602 34,280
Net income 139,250 118,060 408,647 993,786
Add:
Depreciation and amortization expense 179,412 166,456 539,815 515,738
Noncontrolling interests in property partnerships’ share of depreciation and amortization (16,773) (15,833) (50,343) (55,940)
Company’s share of depreciation and amortization from unconsolidated joint ventures 17,803 20,413 51,565 59,757
Corporate-related depreciation and amortization (443) (444) (1,327) (1,399)
Less:
Gains on sale of investment included within loss from unconsolidated joint ventures — — 10,257 5,946
Gains (losses) on sales of real estate 348 (209) 8,104 613,723
Noncontrolling interests in property partnerships 18,971 15,561 52,602 34,280
Preferred dividends — 2,625 2,560 7,875
Preferred stock redemption charge — — 6,412 —
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 299,930 270,675 868,422 850,118
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 29,453 26,697 85,366 85,095
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 270,477 $ 243,978 $ 783,056 $ 765,023
Boston Properties, Inc.’s percentage share of funds from operations - basic 90.18 % 90.14 % 90.17 % 89.99 %
Weighted average shares outstanding - basic 156,183 155,645 156,062 155,349
FFO per share basic $ 1.73 $ 1.57 $ 5.02 $ 4.92
Weighted average shares outstanding - diluted 156,598 155,670 156,394 155,447
FFO per share diluted $ 1.73 $ 1.57 $ 5.01 $ 4.92

(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
September 30, 2021 December 31, 2020
Boston 92.3 % 94.8 %
Los Angeles 83.4 % 93.5 %
New York 87.5 % 87.4 %
San Francisco 87.3 % 91.0 %
Seattle 1 90.9 % N/A
Washington, DC 85.1 % 84.4 %
Total Portfolio 88.4 % 90.1 %

_____________

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

AT THE COMPANY

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

(617) 236-3352

Laura Sesody

Vice President, Corporate Marketing & Communication

lsesody@bxp.com

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