Equibles

8-K

BXP, Inc. (BXP)

8-K 2022-10-26 For: 2022-10-25
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

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

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

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

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter endedSeptember30, 2022.
*99.2 Press release datedOctober25, 2022.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: October 25, 2022

Document

Exhibit 99.1

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Supplemental Operating and Financial Data

for the Quarter Ended September 30, 2022

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT), with more than 50 years of experience developing, owning, managing, and acquiring exceptional properties in dynamic gateway markets. Including properties owned by joint ventures, BXP’s portfolio totals 53.5 million square feet and 193 properties, including fourteen properties under construction/redevelopment. BXP’s properties include 173 office properties, 12 retail properties (including 1 retail property under redevelopment), seven residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned an eleventh consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, uncertainties and risks related to the impact of (1) the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, (2) the impact of geopolitical conflicts, including the ongoing war in Ukraine, and (3) the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply chain disruptions, labor market disruptions, rising inflation, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and client behavior, as well as possible future governmental responses; risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets; risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets; BXP’s ability to enter into new leases or renew leases on favorable terms, dependence on clients’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as may be required by law.

NON-GAAP FINANCIAL MEASURES

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

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

GENERAL INFORMATION

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

(Cover photo: 125 Broadway, Cambridge, MA)

Q3 2022
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 16
LEASING ACTIVITY
Leasing Activity 17
PROPERTY STATISTICS
Portfolio Overview 18
Residential and Hotel Performance 19
In-Service Property Listing 21
Top 20 Clients Listing and Portfolio Client Diversification 25
Occupancy by Location 26
DEBT AND CAPITALIZATION
Capital Structure 27
Debt Analysis 28
Senior Unsecured Debt Covenant Compliance Ratios 29
Net Debt to EBITDAre 30
Debt Ratios 31
JOINT VENTURES
Consolidated Joint Ventures 32
Unconsolidated Joint Ventures 34
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 37
Boston 38
Los Angeles 40
New York 42
San Francisco 44
Seattle 46
Washington, DC 48
CBD 50
Suburban 52
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 54
Definitions 55
Reconciliations 59
Consolidated Income Statement - Prior Year 67
Q3 2022
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Company profile

SNAPSHOT

(as of September 30, 2022)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 193
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 53.5 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 175.0 million
Closing Price, at the end of the quarter $74.97 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 5.2%
Consolidated Market Capitalization 2 $27.0 billion
BXP’s Share of Market Capitalization 2, 3 $27.0 billion
Unsecured Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

MANAGEMENT

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

____________________

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

2For additional detail, see page 27.

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

Q3 2022
Guidance and assumptions

GUIDANCE

BXP’s guidance for the full year 2022 and full year 2023 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on October 25, 2022 and those referenced during the Company’s conference call scheduled for October 26, 2022.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to more fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 57. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Full Year 2022 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 5.55 $ 5.57 $ 2.27 $ 2.42
Add:
Projected Company share of real estate depreciation and amortization 4.39 4.39 4.88 4.88
Projected Company share of (gains)/losses on sales of real estate (2.43) (2.43) — —
Projected FFO per share (diluted) $ 7.51 $ 7.53 $ 7.15 $ 7.30

ASSUMPTIONS

(dollars in thousands)

Full Year 2022 Full Year 2023
Low High Low High
Operating property activity:
Average In-service portfolio occupancy 88.50 % 89.50 % 88.00 % 89.50 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) 3.50 % 4.00 % (0.50) % 0.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 5.75 % 6.25 % 1.00 % 2.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 107,000 $ 112,000 $ 100,000 $ 115,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (27,000) $ (25,000) $ (30,000) $ (28,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 140,000 $ 145,000 $ 95,000 $ 115,000
Termination income $ 5,000 $ 7,000 $ 3,000 $ 5,000
Other revenue (expense):
Development, management services and other revenue $ 33,000 $ 36,000 $ 28,000 $ 33,000
General and administrative expense 1 $ (155,000) $ (150,000) $ (164,000) $ (157,000)
Consolidated net interest expense 2 $ (430,000) $ (420,000) $ (520,000) $ (510,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (146,000) $ (144,000) $ (150,000) $ (145,000)

_______________

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

2 Excludes $(66M) - $(64M) for full year 2022 and $(100M) - $(95M) for full year 2023 of BXP’s share of projected interest expense from unconsolidated joint ventures.

Q3 2022
Financial highlights

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

Three Months Ended
30-Sep-22 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
Net income attributable to Boston Properties, Inc. per share - diluted $ 2.29 $ 1.42
FFO attributable to Boston Properties, Inc. 1 $ 299,751 $ 304,560
Diluted FFO per share 1 $ 1.91 $ 1.94
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 127,771 $ 222,114
Selected items:
Revenue $ 790,523 $ 773,927
Recoveries from clients $ 123,665 $ 116,666
Service income from clients $ 2,933 $ 2,452
BXP’s Share of revenue 3 $ 771,125 $ 753,433
BXP’s Share of straight-line rent 3 $ 33,817 $ 30,401
BXP’s Share of fair value lease revenue 3, 4 $ 2,933 $ 2,411
BXP’s Share of termination income 3 $ 2,424 $ 1,280
Ground rent expense $ 3,309 $ 3,442
Capitalized interest $ 12,230 $ 14,079
Capitalized wages $ 3,921 $ 4,061
Loss from unconsolidated joint ventures $ (3,524) $ (54)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 17,961 $ 21,066
Net income attributable to noncontrolling interests in property partnerships $ 18,801 $ 18,546
FFO attributable to noncontrolling interests in property partnerships 6 $ 36,507 $ 35,960
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 4,524 $ 4,868
Below-market rents (included within Other Liabilities) $ 56,058 $ 42,119
Accrued rental income liability (included within Other Liabilities) $ 119,839 $ 123,137
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 3.82 4.30
Interest Coverage Ratio (including capitalized interest) 7 3.41 3.75
Fixed Charge Coverage Ratio 7 3.04 3.30
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.49 7.46
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 3.2 % 6.1 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 6.7 % 9.5 %
FAD Payout Ratio 2 134.26 % 77.23 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.3 % 63.6 %
Occupancy of In-Service Properties 88.9 % 89.5 %
Capitalization:
Consolidated Debt $ 13,832,871 $ 13,652,773
BXP’s Share of Debt 10 $ 13,925,599 $ 13,741,991
Consolidated Market Capitalization $ 26,950,372 $ 29,219,913
Consolidated Debt/Consolidated Market Capitalization 51.33 % 46.72 %
BXP’s Share of Market Capitalization 10 $ 27,043,100 $ 29,309,131
BXP’s Share of Debt/BXP’s Share of Market Capitalization 10 51.49 % 46.89 %

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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 55.

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

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

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

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

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

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

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

Q3 2022
Consolidated Balance Sheets

(unaudited and in thousands)

30-Sep-22 30-Jun-22
ASSETS
Real estate $ 23,920,533 $ 23,522,913
Construction in progress 670,167 593,958
Land held for future development 601,676 583,700
Right of use assets - finance leases 237,505 237,488
Right of use assets - operating leases 167,935 168,370
Less accumulated depreciation (6,170,472) (6,077,270)
Total real estate 19,427,344 19,029,159
Cash and cash equivalents 375,774 456,491
Cash held in escrows 73,112 46,359
Investments in securities 30,040 31,457
Tenant and other receivables, net 69,633 64,607
Related party note receivable, net 78,592 78,576
Accrued rental income, net 1,250,176 1,265,480
Deferred charges, net 720,648 684,078
Prepaid expenses and other assets 107,538 55,232
Investments in unconsolidated joint ventures 1,593,834 1,554,994
Total assets $ 23,726,691 $ 23,266,433
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,271,157 $ 3,269,948
Unsecured senior notes, net 9,491,714 9,489,030
Unsecured line of credit 340,000 165,000
Unsecured term loan, net 730,000 728,795
Lease liabilities - finance leases 248,092 246,832
Lease liabilities - operating leases 205,008 204,643
Accounts payable and accrued expenses 360,572 342,467
Dividends and distributions payable 170,952 170,937
Accrued interest payable 91,885 96,821
Other liabilities 417,255 401,360
Total liabilities 15,326,635 15,115,833
Commitments and contingencies — —
Redeemable deferred stock units 6,985 7,931
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, 156,833,612 and 156,805,330 issued and 156,754,712 and 156,726,430 outstanding at September 30, 2022 and June 30, 2022, respectively 1,568 1,567
Additional paid-in capital 6,532,299 6,524,997
Dividends in excess of earnings (359,536) (567,016)
Treasury common stock at cost, 78,900 shares at September 30, 2022 and June 30, 2022 (2,722) (2,722)
Accumulated other comprehensive loss (15,991) (27,077)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,155,618 5,929,749
Noncontrolling interests:
Common units of the Operating Partnership 685,952 660,214
Property partnerships 1,551,501 1,552,706
Total equity 8,393,071 8,142,669
Total liabilities and equity $ 23,726,691 $ 23,266,433
Q3 2022
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
30-Sep-22 30-Jun-22
Revenue
Lease $ 739,255 $ 721,899
Parking and other 26,259 26,474
Insurance proceeds 1,895 3,872
Hotel revenue 11,749 12,089
Development and management services 7,465 6,354
Direct reimbursements of payroll and related costs from management services contracts 3,900 3,239
Total revenue 790,523 773,927
Expenses
Operating 145,083 137,531
Real estate taxes 135,670 132,056
Demolition costs — —
Restoration expenses related to insurance claims 949 4,261
Hotel operating 8,548 6,444
General and administrative 1 32,519 34,665
Payroll and related costs from management services contracts 3,900 3,239
Transaction costs 1,650 496
Depreciation and amortization 190,675 183,146
Total expenses 518,994 501,838
Other income (expense)
Loss from unconsolidated joint ventures (3,524) (54)
Gains on sales of real estate 262,345 96,247
Losses from investments in securities 1 (1,571) (4,716)
Interest and other income (loss) 3,728 1,195
Other income - assignment fee 2 — 6,624
Interest expense (111,846) (104,142)
Net income 420,661 267,243
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,801) (18,546)
Noncontrolling interest - common units of the Operating Partnership 3 (40,883) (25,708)
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 2.30 $ 1.42
Net income attributable to Boston Properties, Inc. per share - diluted $ 2.29 $ 1.42

_____________

1General and administrative expense includes $(1.6) million and $(4.7) million and Losses from investments in securities include $(1.6) million and $(4.7) million for the three months ended September 30, 2022 and June 30, 2022, respectively, related to the Company’s deferred compensation plan.

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

3For additional detail, see page 6.

Q3 2022
Funds from operations (FFO) 1

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

Three Months Ended
30-Sep-22 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
Add:
Noncontrolling interest - common units of the Operating Partnership 40,883 25,708
Noncontrolling interests in property partnerships 18,801 18,546
Net income 420,661 267,243
Add:
Depreciation and amortization expense 190,675 183,146
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,706) (17,414)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 21,485 21,120
Corporate-related depreciation and amortization (431) (413)
Less:
Gains on sales of real estate 262,345 96,247
Noncontrolling interests in property partnerships 18,801 18,546
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 333,538 338,889
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 33,787 34,329
FFO attributable to Boston Properties, Inc. $ 299,751 $ 304,560
Boston Properties, Inc.’s percentage share of Basic FFO 89.87 % 89.87 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.13 % 10.13 %
Basic FFO per share $ 1.91 $ 1.94
Weighted average shares outstanding - basic 156,754 156,720
Diluted FFO per share $ 1.91 $ 1.94
Weighted average shares outstanding - diluted 157,133 157,192

RECONCILIATION TO DILUTED FFO

Three Months Ended
30-Sep-22 30-Jun-22
Basic FFO $ 333,538 $ 338,889
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 333,538 338,889
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 33,687 34,262
Boston Properties, Inc.’s share of Diluted FFO $ 299,851 $ 304,627

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
30-Sep-22 30-Jun-22
Shares/units for Basic FFO 174,416 174,392
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 379 472
Shares/units for Diluted FFO 174,795 174,864
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,662 17,672
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,133 157,192
Boston Properties, Inc.’s percentage share of Diluted FFO 89.90 % 89.89 %

_____________

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

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

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

Q3 2022
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
30-Sep-22 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
Add:
Noncontrolling interest - common units of the Operating Partnership 40,883 25,708
Noncontrolling interests in property partnerships 18,801 18,546
Net income 420,661 267,243
Add:
Depreciation and amortization expense 190,675 183,146
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,706) (17,414)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 21,485 21,120
Corporate-related depreciation and amortization (431) (413)
Less:
Gains on sales of real estate 262,345 96,247
Noncontrolling interests in property partnerships 18,801 18,546
Basic FFO 333,538 338,889
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 6,047 4,539
BXP’s Share of hedge amortization, net of costs 1 200 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 944 891
Stock-based compensation 7,695 14,630
Non-real estate depreciation 431 413
Unearned portion of capitalized fees from consolidated joint ventures 6 1,093 1,013
Less:
BXP’s Share of straight-line rent 1 33,817 30,401
BXP’s Share of fair value lease revenue 1, 7 2,933 2,411
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 169,759 90,989
BXP’s Share of maintenance capital expenditures 1, 8 15,520 15,818
Hotel improvements, equipment upgrades and replacements 148 88
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 127,771 $ 222,114
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 171,550 $ 171,531
FAD Payout Ratio1 (B÷A) 134.26 % 77.23 %

_____________

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

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

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

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

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2024 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

6See page 61 for additional information.

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

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

Q3 2022
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
30-Sep-22 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 360,977 $ 108,297
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 40,883 11,982
Noncontrolling interest in property partnerships 18,801 18,971
Net income 420,661 139,250
Add:
Interest expense 111,846 105,794
Losses from investments in securities 1,571 190
Loss from unconsolidated joint ventures 3,524 5,597
Depreciation and amortization expense 190,675 179,412
Transaction costs 1,650 1,888
Payroll and related costs from management services contracts 3,900 3,006
General and administrative expense 32,519 34,560
Less:
Interest and other income (loss) 3,728 1,520
Gains on sales of real estate 262,345 348
Direct reimbursements of payroll and related costs from management services contracts 3,900 3,006
Development and management services revenue 7,465 6,094
Net Operating Income (NOI) 488,908 458,729
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 35,316 24,266
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 48,306 47,800
BXP’s Share of NOI 475,918 435,195
Less:
Termination income 1,981 1,874
BXP’s share of termination income from unconsolidated joint ventures 1 500 (17)
Add:
Partners’ share of termination income from consolidated joint ventures 2 57 10
BXP’s Share of NOI (excluding termination income) $ 473,494 $ 433,348
Net Operating Income (NOI) $ 488,908 $ 458,729
Less:
Termination income 1,981 1,874
NOI from non Same Properties (excluding termination income) 3 33,576 14,697
Same Property NOI (excluding termination income) 453,351 442,158
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 48,249 47,790
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 34,816 24,283
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 9,648 1,669
BXP’s Share of Same Property NOI (excluding termination income) $ 430,270 $ 416,982

_____________

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

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

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

Q3 2022
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
30-Sep-22 30-Sep-21
Net income attributable to Boston Properties, Inc. $ 360,977 $ 108,297
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 40,883 11,982
Noncontrolling interest in property partnerships 18,801 18,971
Net income 420,661 139,250
Add:
Interest expense 111,846 105,794
Losses from investments in securities 1,571 190
Loss from unconsolidated joint ventures 3,524 5,597
Depreciation and amortization expense 190,675 179,412
Transaction costs 1,650 1,888
Payroll and related costs from management services contracts 3,900 3,006
General and administrative expense 32,519 34,560
Less:
Interest and other income (loss) 3,728 1,520
Gains on sales of real estate 262,345 348
Direct reimbursements of payroll and related costs from management services contracts 3,900 3,006
Development and management services revenue 7,465 6,094
Net Operating Income (NOI) 488,908 458,729
Less:
Straight-line rent 32,140 36,675
Fair value lease revenue 2,442 1,408
Termination income 1,981 1,874
Add:
Straight-line ground rent expense adjustment 1 631 748
Lease transaction costs that qualify as rent inducements 2 4,667 4,090
NOI - cash (excluding termination income) 457,643 423,610
Less:
NOI - cash from non Same Properties (excluding termination income) 3 23,983 13,308
Same Property NOI - cash (excluding termination income) 433,660 410,302
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 45,046 45,150
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 — —
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5 30,969 21,619
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 8,181 1,248
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 411,402 $ 385,523

_____________

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 $169 and $40 for the three months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, the Company has remaining lease payments aggregating approximately $25.3 million, all of which it expects to incur by the end of 2024 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2024 may vary significantly. For the three months ended September 30, 2021, amount excludes $(23.0) million of prepaid ground rent expense in connection with the ground lease at Sumner Square located in Washington, DC.

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

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

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

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

Q3 2022
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
30-Sep-22 30-Sep-21 Change Change 30-Sep-22 30-Sep-21 Change Change
Rental Revenue 2 $ 706,621 $ 682,223 $ 26,089 $ 16,082
Less: Termination income 1,711 1,874 — —
Rental revenue (excluding termination income) 2 704,910 680,349 3.6 % 26,089 16,082 62.2 %
Less: Operating expenses and real estate taxes 262,076 244,283 17,793 7.3 % 15,572 9,990 5,582 55.9 %
NOI (excluding termination income) 2, 3 $ 442,834 $ 436,066 1.6 % $ 10,517 $ 6,092 72.6 %
Rental revenue (excluding termination income) 2 $ 704,910 $ 680,349 3.6 % $ 26,089 $ 16,082 62.2 %
Less: Straight-line rent and fair value lease revenue 23,504 36,702 (13,198) (36.0) % 21 (8) 29 362.5 %
Add: Lease transaction costs that qualify as rent inducements 4 3,203 4,042 (839) (20.8) % — 48 (48) (100.0) %
Subtotal 684,609 647,689 36,920 5.7 % 26,068 16,138 9,930 61.5 %
Less: Operating expenses and real estate taxes 262,076 244,283 17,793 7.3 % 15,572 9,990 5,582 55.9 %
Add: Straight-line ground rent expense 5 631 748 (117) (15.6) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 423,164 $ 404,154 4.7 % $ 10,496 $ 6,148 70.7 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
30-Sep-22 30-Sep-21 Change Change 30-Sep-22 30-Sep-21 Change Change
Rental Revenue 2 $ 732,710 $ 698,305 $ 45,210 $ 40,420
Less: Termination income 1,711 1,874 500 (17)
Rental revenue (excluding termination income) 2 730,999 696,431 5.0 % 44,710 40,437 10.6 %
Less: Operating expenses and real estate taxes 277,648 254,273 23,375 9.2 % 19,542 17,823 1,719 9.6 %
NOI (excluding termination income) 2, 3 $ 453,351 $ 442,158 2.5 % $ 25,168 $ 22,614 11.3 %
Rental revenue (excluding termination income) 2 $ 730,999 $ 696,431 5.0 % $ 44,710 $ 40,437 10.6 %
Less: Straight-line rent and fair value lease revenue 23,525 36,694 (13,169) (35.9) % 3,904 2,818 1,086 38.5 %
Add: Lease transaction costs that qualify as rent inducements 4 3,203 4,090 (887) (21.7) % 1,380 367 1,013 276.0 %
Subtotal $ 710,677 $ 663,827 46,850 7.1 % 42,186 37,986 4,200 11.1 %
Less: Operating expenses and real estate taxes 277,648 254,273 23,375 9.2 % 19,542 17,823 1,719 9.6 %
Add: Straight-line ground rent expense 5 631 748 (117) (15.6) % 144 208 (64) (30.8) %
NOI - cash (excluding termination income) 2, 3 $ 433,660 $ 410,302 5.7 % $ 22,788 $ 20,371 11.9 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 3, 6, 7
Three Months Ended % Three Months Ended %
30-Sep-22 30-Sep-21 Change Change 30-Sep-22 30-Sep-21 Change Change
Rental Revenue 2 $ 79,336 $ 76,951 $ 698,584 $ 661,774
Less: Termination income 57 10 2,154 1,847
Rental revenue (excluding termination income) 2 79,279 76,941 3.0 % 696,430 659,927 5.5 %
Less: Operating expenses and real estate taxes 31,030 29,151 1,879 6.4 % 266,160 242,945 23,215 9.6 %
NOI (excluding termination income) 2, 3 $ 48,249 $ 47,790 1.0 % $ 430,270 $ 416,982 3.2 %
Rental revenue (excluding termination income) 2 $ 79,279 $ 76,941 3.0 % $ 696,430 $ 659,927 5.5 %
Less: Straight-line rent and fair value lease revenue 3,203 3,718 (515) (13.9) % 24,226 35,794 (11,568) (32.3) %
Add: Lease transaction costs that qualify as rent inducements 4 — 1,078 (1,078) (100.0) % 4,583 3,379 1,204 35.6 %
Subtotal 76,076 74,301 1,775 2.4 % 676,787 627,512 49,275 7.9 %
Less: Operating expenses and real estate taxes 31,030 29,151 1,879 6.4 % 266,160 242,945 23,215 9.6 %
Add: Straight-line ground rent expense 5 — — — — % 775 956 (181) (18.9) %
NOI - cash (excluding termination income) 2, 3 $ 45,046 $ 45,150 (0.2) % $ 411,402 $ 385,523 6.7 %

All values are in US Dollars.

___________________

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

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

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

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

5Excludes the straight-line impact of approximately $169 and $40 for the three months ended September 30, 2022 and 2021, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

Q3 2022
Same property net operating income (NOI) by reportable segment (continued)

6BXP’s Share equals (A) + (B) - (C).

7BXP’s Share of Same Store NOI-cash (excluding termination income) increased $25,879, compared to Q3 2021. Included in Q3 2021 is BXP’s Share of $8,063 of cash rent abatements and deferrals primarily related to COVID-19.

Q3 2022
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
30-Sep-22 30-Jun-22
Maintenance capital expenditures $ 16,808 $ 16,256
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures 8,969 17,779
Hotel improvements, equipment upgrades and replacements 148 88
Subtotal 25,925 34,123
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 601 1,022
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 462 425
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 1,889 1,460
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 2,372 6,438
BXP’s Share of Capital Expenditures 1 $ 22,727 $ 27,672

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
30-Sep-22 30-Jun-22
Square feet 1,680,341 1,932,249
Tenant improvements and lease commissions PSF $ 116.42 $ 71.73

___________________

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

2Includes 100% of unconsolidated joint ventures.

Q3 2022
Acquisitions and dispositions

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

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
Madison Centre Seattle, WA May 17, 2022 754,988 $ 730,000 $ — $ 730,000 92.7 %
125 Broadway Cambridge, MA September 16, 2022 271,000 592,438 2,500 594,938 100.0 %
Total Acquisitions 1,025,988 $ 1,322,438 $ 2,500 $ 1,324,938 94.6 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain 1
195 West Street Waltham, MA March 31, 2022 63,500 $ 37,700 $ 35,397 $ 22,701
Virginia 95 Office Park Springfield, VA June 15, 2022 733,421 127,500 121,948 96,160
601 Massachusetts Avenue Washington, DC August 30, 2022 478,667 531,000 514,506 237,433
Broadrun Land Parcel Loudoun County, VA September 15, 2022 N/A 27,000 26,865 24,380
Total Dispositions 1,275,588 $ 723,200 $ 698,716 $ 380,674

___________________

1 Excludes approximately $0.6 million of gains on sales of real estate recognized during the nine months ended September 30, 2022 related to gain amounts from sales of real estate occurring in prior periods.

Q3 2022
Construction in progress

as of September 30, 2022

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 9/30/2022 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
140 Kendrick - Building A Q3 2023 Q3 2023 Needham, MA 104,000 $ 4,163 $ 26,600 $ — $ — $ 22,437 100 % — % N/A
Reston Next Q4 2021 Q4 2023 Reston, VA 1,062,000 560,445 715,300 — — 154,855 87 % 69 % 6,221
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 480,000 301,118 356,100 — — 54,982 61 % 6 % (128)
360 Park Avenue South (42% ownership) 6 Q4 2023 Q1 2025 New York, NY 450,000 200,474 219,000 92,774 87,299 13,051 — % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 15,321 61,000 — — 45,679 — % — % N/A
Platform16 Building A (55% ownership) 7 Q2 2025 Q4 2026 San Jose, CA 389,500 78,343 231,900 — — 153,557 — % — % N/A
Total Office Properties under Construction 2,575,500 1,159,864 1,609,900 92,774 87,299 444,561 51 % 30 % 6,093
Lab/Life Sciences
880 Winter Street (Redevelopment) Q3 2022 Q1 2023 Waltham, MA 244,000 100,112 108,000 — — 7,888 97 % 25 % 308
751 Gateway (49% ownership) Q2 2024 Q2 2024 South San Francisco, CA 231,000 81,235 127,600 — — 46,365 100 % — % N/A
103 CityPoint Q4 2023 Q3 2024 Waltham, MA 113,000 33,288 115,100 — — 81,812 — % — % N/A
180 CityPoint Q4 2023 Q4 2024 Waltham, MA 329,000 119,190 274,700 — — 155,510 43 % — % N/A
651 Gateway (50% ownership) (Redevelopment) Q4 2023 Q4 2025 South San Francisco, CA 327,000 33,738 146,500 — — 112,762 — % — % N/A
Total Lab/Life Sciences Properties under Construction 1,244,000 367,563 771,900 — — 404,337 49 % 5 % 308
Residential
Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 11,394 47,700 28,000 4,116 12,422 — % — % N/A
Total Residential Property under Construction 417,000 11,394 47,700 28,000 4,116 12,422 — % — % N/A
Retail
760 Boylston Street (Redevelopment) Q2 2024 Q2 2024 Boston, MA 118,000 2,355 43,800 — — 41,445 100 % — % N/A
Total Retail Property under Construction 118,000 2,355 43,800 — — 41,445 100 % — % —
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 136,896 182,300 — — 45,404 N/A — % N/A
Total Properties Under Construction 8 4,413,500 $ 1,678,072 $ 2,655,600 $ 120,774 $ 91,415 $ 948,169 52 % 9 18 % $ 6,401

PROJECTS FULLY PLACED IN-SERVICE DURING 2022

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 9/30/2022 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5 (BXP’s Share)
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
325 Main Street Q2 2022 Q2 2022 Cambridge, MA 414,008 $ 350,770 $ 418,400 $ — $ — $ 67,630 92 % $ 9,262
Total Projects Fully Placed In-Service 414,008 $ 350,770 $ 418,400 $ — $ — $ 67,630 92 % $ 9,262
Q3 2022
--- ---
Construction in progress (continued)

________________

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

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

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

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

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

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

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

8Estimated total investment excludes approximately $210 million related to the redevelopment of 300 Binney Street which is currently in-service. The Company and Biogen terminated their existing lease agreement at 300 Binney Street to facilitate the conversion and expansion of the property, which is expected to begin in early 2023. Biogen will be vacating the property in phases through early 2023. The redeveloped property is 100% pre-leased. The commencement of construction are subject to various conditions. There can be no assurance that the Company will commence the redevelopment on the terms and schedule currently contemplated or at all.

9Total percentage leased excludes Residential and Other.

Q3 2022
Land parcels and purchase options

as of September 30, 2022

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,229,400
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Francisco, CA 850,000
San Jose, CA (55% Ownership) 698,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% Ownership) 451,000
Springfield, VA 422,000
Waltham, MA 365,000
El Segundo, CA (50% Ownership) 275,000
Lexington, MA 3 259,000
Rockville, MD 3 202,000
Dulles, VA 4 150,000
Total 12,902,400

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

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

__________________

1Represents 100% of consolidated and unconsolidated projects.

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

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

4On September 15, 2022, the Company completed the sale of a parcel of land within its Broad Run Business Park property located in Loudoun County, Virginia for a gross sale price of $27.0 million, resulting in a gain on sale of real estate totaling approximately $24.4 million.

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

Q3 2022
Leasing activity

for the three months ended September 30, 2022

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,019,936
Less:
Property dispositions/properties taken out of service 1 5,270
Add:
Properties placed (and partially placed) in-service 2 62,933
Leases expiring or terminated during the period 1,920,658
Total space available for lease 6,998,257
1st generation leases 67,007
2nd generation leases with new clients 595,133
2nd generation lease renewals 1,085,208
Total space leased 1,747,348
Vacant space available for lease at the end of the period 5,250,909
Net (increase)/decrease in available space (230,973)
Second generation leasing information: 3
Leases commencing during the period (SF) 1,680,341
Weighted average lease term (months) 114
Weighted average free rent period (days) 77
Total transaction costs per square foot 4 116.42
Increase (decrease) in gross rents 5 1.41
Increase (decrease) in net rents 6 0.21

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 5
Boston 51,195 186,422 237,617 18.89 % 28.17 % 799,713
Los Angeles — — — — % — % 28,602
New York 4,074 699,947 704,021 0.45 % (3.68) % 289,692
San Francisco — 270,657 270,657 2.67 % 3.19 % 165,345
Seattle — 8,961 8,961 — % — % —
Washington, DC 11,738 514,354 526,092 (6.26) % (8.78) % 162,932
Total / Weighted Average 67,007 1,680,341 1,747,348 1.41 % 0.21 % 1,446,284

_____________

1Total vacant square feet of properties taken out of service in Q3 2022 consists of 5,270 at 601 Massachusetts Avenue.

2Total square feet of properties placed (and partially placed) in-service in Q3 2022 consists of 4,207 at 2100 Pennsylvania Avenue, 7,531 at Reston Next and 51,195 at 880 Winter Street.

3Second generation leases are defined as leases for space that have previously been leased. Of the 1,680,341 square feet of second generation leases that commenced in Q3 2022, leases for 1,498,628 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 1,382,469 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,382,469 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

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

8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 193,318.

Q3 2022
Portfolio overview

for the three months ended September 30, 2022

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,663,662 967,152 550,114 330,000 16,510,928
Los Angeles 2,186,511 126,377 — — 2,312,888
New York 11,370,884 417,849 — — 11,788,733
San Francisco 6,996,895 355,928 318,171 — 7,670,994
Seattle 1,506,632 26,472 — — 1,533,104
Washington, DC 7,832,515 648,564 822,436 — 9,303,515
Total 44,557,099 2,542,342 1,690,721 330,000 49,120,162
% of Total 90.71 % 5.18 % 3.44 % 0.67 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 699,331 $ 54,537 $ 13,639 $ 11,651 $ 779,158
Less:
Partners’ share from consolidated joint ventures 4 69,847 9,489 — — 79,336
Add:
BXP’s share from unconsolidated joint ventures 5 54,823 2,267 2,531 — 59,621
BXP’s Share of Rental revenue 1 $ 684,307 $ 47,315 $ 16,170 $ 11,651 $ 759,443
% of Total 90.11 % 6.23 % 2.13 % 1.53 % 100.00 %

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

CBD Suburban Total
Boston 28.77 % 6.38 % 35.15 %
Los Angeles 2.68 % — % 2.68 %
New York 24.10 % 2.00 % 26.10 %
San Francisco 16.93 % 2.32 % 19.25 %
Seattle 2.30 % — % 2.30 %
Washington, DC 4.10 % 10.42 % 14.52 %
Total 78.88 % 21.12 % 100.00 %

_____________

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

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

3Excludes approximately $98 of revenue from retail clients that is included in Retail.

4See page 62 for additional information.

5See page 64 for additional information.

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

Q3 2022
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
30-Sep-22 30-Jun-22 30-Sep-22 30-Jun-22
Rental Revenue 2 $ 14,340 $ 16,912 $ 11,749 $ 12,089
Less: Operating expenses and real estate taxes 7,024 9,818 8,548 6,444
Net Operating Income (NOI) 2 7,316 7,094 3,201 5,645
Add: BXP’s share of NOI from unconsolidated joint ventures 1,539 1,590 N/A N/A
BXP’s Share of NOI 2 $ 8,855 $ 8,684 $ 3,201 $ 5,645
Rental Revenue 2 $ 14,340 $ 16,912 $ 11,749 $ 12,089
Less: Straight line rent and fair value lease revenue 24 59 (2) 2
Add: Lease transaction costs that qualify as rent inducements — (41) — —
Subtotal 14,316 16,812 11,751 12,087
Less: Operating expenses and real estate taxes 7,024 9,818 8,548 6,444
NOI - cash basis 2 7,292 6,994 3,203 5,643
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,539 1,590 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 8,831 $ 8,584 $ 3,203 $ 5,643

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-22 30-Sep-21
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 4,102 $ 3,360 22.08 %
Average Rental Rate Per Occupied Square Foot $ 5.64 $ 4.69 20.26 %
Average Physical Occupancy 95.45 % 87.50 % 9.09 %
Average Economic Occupancy 95.23 % 82.92 % 14.85 %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 2,895 $ 2,642 9.58 %
Average Rental Rate Per Occupied Square Foot $ 5.32 $ 4.82 10.37 %
Average Physical Occupancy 95.60 % 94.52 % 1.14 %
Average Economic Occupancy 94.90 % 93.90 % 1.06 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,238 $ 3,747 13.10 %
Average Rental Rate Per Occupied Square Foot $ 4.71 $ 4.17 12.95 %
Average Physical Occupancy 99.61 % 96.51 % 3.21 %
Average Economic Occupancy 99.28 % 95.38 % 4.09 %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 75.80 % 49.40 % 53.44 %
Average Daily Rate $ 328.40 $ 222.31 47.72 %
Revenue Per Available Room $ 249.06 $ 109.86 126.71 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 3 402
Average Monthly Rental Rate $ 3,400 $ 3,307 2.81 %
Average Rental Rate Per Occupied Square Foot $ 4.27 $ 3.92 8.93 %
Average Physical Occupancy 92.79 % 48.34 % 91.95 %
Average Economic Occupancy 90.17 % 41.03 % 119.77 %
Q3 2022
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
30-Sep-22 30-Sep-21
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,671 $ 2,429 9.96 %
Average Rental Rate Per Occupied Square Foot $ 2.75 $ 2.51 9.56 %
Average Physical Occupancy 96.26 % 93.24 % 3.24 %
Average Economic Occupancy 95.93 % 92.03 % 4.24 %
The Avant at Reston Town Center, Reston, VA 2, 3 359
Average Monthly Rental Rate $ 2,450 $ 2,299 6.57 %
Average Rental Rate Per Occupied Square Foot $ 2.67 $ 2.50 6.80 %
Average Physical Occupancy 95.36 % 96.29 % (0.97) %
Average Economic Occupancy 95.32 % 96.25 % (0.97) %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

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

3Excludes retail space.

Q3 2022
In-service property listing as of September 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,769,077 94.0 % $ 77.82
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,821 97.1 % 72.93
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,798 91.2 % 68.62
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,446 95.2 % 73.56
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,819 99.8 % 82.74
100 Causeway Street (50% ownership) 3, 4 CBD Boston MA 1 633,819 94.6 % 75.17
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 100.0 % 57.59
Prudential Center (retail shops) 5, 6 CBD Boston MA — 475,756 94.3 % 96.93
The Hub on Causeway - Podium (50% ownership) 3 CBD Boston MA 1 382,497 74.7 % 70.16
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 78.68
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 61.36
Subtotal 10 8,279,065 94.6 % $ 75.14
145 Broadway East Cambridge MA 1 490,086 99.8 % $ 87.66
325 Main Street 4 East Cambridge MA 1 414,008 91.6 % 98.42
125 Broadway 4 East Cambridge MA 1 271,000 100.0 % 137.96
355 Main Street East Cambridge MA 1 259,640 99.3 % 79.69
90 Broadway East Cambridge MA 1 223,771 98.1 % 75.90
255 Main Street East Cambridge MA 1 215,394 97.5 % 99.43
300 Binney Street 7 East Cambridge MA 1 195,191 64.2 % —
150 Broadway East Cambridge MA 1 177,226 100.0 % 84.43
105 Broadway East Cambridge MA 1 152,664 100.0 % 71.85
250 Binney Street East Cambridge MA 1 67,362 100.0 % 48.55
University Place Mid-Cambridge MA 1 195,282 100.0 % 55.47
Subtotal 11 2,661,624 95.6 % $ 84.77
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 989,548 63.6 % $ 45.28
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 76.9 % 39.87
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 57.56
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 89.1 % 39.23
140 Kendrick Street 6 Route 128 Mass Turnpike MA 2 298,431 100.0 % 47.42
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 95.6 % 45.05
200 West Street 4 Route 128 Mass Turnpike MA 1 273,365 83.9 % 67.97
10 CityPoint Route 128 Mass Turnpike MA 1 236,570 100.0 % 52.94
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 55.46
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 96.0 % 45.42
890 Winter Street Route 128 Mass Turnpike MA 1 179,312 43.5 % 47.95
153 & 211 Second Avenue Route 128 Mass Turnpike MA 2 136,882 100.0 % 55.56
1265 Main Street (50% ownership) 3 Route 128 Mass Turnpike MA 1 120,681 100.0 % 51.48
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 46.18
The Point 5 Route 128 Mass Turnpike MA 1 16,300 100.0 % 60.43
Lexington Office Park 8 Route 128 Northwest MA 2 166,779 46.8 % 28.96
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 69.80
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.49
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 60.18
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 46.38
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 52.01
Subtotal 27 4,661,722 83.4 % $ 48.80
Boston Office Total: 48 15,602,411 91.4 % $ 69.65
Residential
Hub50House (440 units) (50% ownership) 3 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,096
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,257 Q3 2022
--- ---
In-service property listing (continued) as of September 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 52 16,510,928
LOS ANGELES
Office
Colorado Center (50% ownership) 3 West Los Angeles CA 6 1,131,511 89.5 % $ 70.04
Santa Monica Business Park (55% ownership) 3 West Los Angeles CA 14 1,106,973 90.5 % 68.58
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 73.79
Subtotal 27 2,312,888 90.0 % $ 69.46
Los Angeles Total: 27 2,312,888 90.0 % $ 69.46
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,965,003 86.8 % $ 162.19
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,670,790 98.0 % 98.84
399 Park Avenue Park Avenue NY 1 1,577,544 99.2 % 98.72
599 Lexington Avenue Park Avenue NY 1 1,095,398 91.3 % 87.40
Times Square Tower (55% ownership) Times Square NY 1 1,225,472 84.8 % 80.00
250 West 55th Street Times Square / West Side NY 1 966,979 100.0 % 94.62
Dock 72 (50% ownership) 3 Brooklyn NY 1 668,625 33.8 % 60.61
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 95.1 % 137.65
Subtotal 8 9,524,900 89.0 % $ 107.97
510 Carnegie Center Princeton NJ 1 234,160 33.5 % $ 37.53
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 35.33
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.74
212 Carnegie Center Princeton NJ 1 151,355 41.9 % 38.68
214 Carnegie Center Princeton NJ 1 146,799 65.9 % 36.61
506 Carnegie Center Princeton NJ 1 139,050 68.2 % 38.18
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 41.39
202 Carnegie Center Princeton NJ 1 134,068 83.1 % 39.29
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 41.19
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.32
101 Carnegie Center Princeton NJ 1 121,620 95.3 % 38.61
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 39.17
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.27
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 39.05
103 Carnegie Center Princeton NJ 1 96,331 78.3 % 35.34
105 Carnegie Center Princeton NJ 1 69,955 50.2 % 35.42
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 35.37
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 37.46
201 Carnegie Center Princeton NJ — 6,500 100.0 % 33.44
Subtotal 18 2,263,833 78.0 % $ 38.21
New York Total: 26 11,788,733 86.9 % $ 95.94
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 107.89
Embarcadero Center Four CBD San Francisco CA 1 941,018 93.2 % 89.80
Embarcadero Center One CBD San Francisco CA 1 837,051 68.9 % 86.57
Embarcadero Center Two CBD San Francisco CA 1 802,472 86.6 % 84.43
Embarcadero Center Three CBD San Francisco CA 1 787,377 82.8 % 87.72 Q3 2022
--- ---
In-service property listing (continued) as of September 30, 2022
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 98.7 % 72.53
535 Mission Street CBD San Francisco CA 1 307,235 90.1 % 90.10
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 104.03
Subtotal 9 5,646,708 89.3 % $ 91.85
Gateway Commons (50% ownership) 3 South San Francisco CA 5 787,981 84.1 % $ 61.69
Mountain View Research Park Mountain View CA 15 542,264 74.0 % 69.68
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 89.60
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 51.69
North First Business Park 8 San Jose CA 5 190,636 71.1 % 24.46
Subtotal 27 1,693,290 80.6 % $ 63.13
San Francisco Office Total: 36 7,339,998 87.3 % $ 85.71
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 37 7,670,994
SEATTLE
Office
Safeco Plaza (33.67% ownership) 3, 4 CBD Seattle WA 1 778,116 85.2 % $ 44.36
Madison Centre 4 CBD Seattle WA 1 754,988 93.1 % 59.27
Subtotal 2 1,533,104 89.1 % $ 52.03
Seattle Total: 2 1,533,104 89.1 % $ 52.03
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 3 East End Washington DC 1 657,580 67.8 % $ 69.79
901 New York Avenue (25% ownership) 3 East End Washington DC 1 544,256 78.4 % 66.12
Market Square North (50% ownership) 3 East End Washington DC 1 417,982 76.1 % 71.25
2200 Pennsylvania Avenue CBD Washington DC 1 459,667 97.3 % 97.11
1330 Connecticut Avenue CBD Washington DC 1 253,579 92.1 % 71.04
Sumner Square CBD Washington DC 1 209,556 98.1 % 55.93
500 North Capitol Street, N.W. (30% ownership) 3 Capitol Hill Washington DC 1 230,900 98.5 % 81.05
Capital Gallery Southwest Washington DC 1 176,809 97.1 % 54.92
Subtotal 8 2,950,329 83.9 % $ 73.03
South of Market Reston VA 3 623,250 99.6 % $ 54.23
Fountain Square Reston VA 2 524,797 84.4 % 49.90
One Freedom Square Reston VA 1 428,400 76.7 % 50.83
Two Freedom Square Reston VA 1 423,222 100.0 % 49.25
One and Two Discovery Square Reston VA 2 366,989 99.0 % 50.55
One Reston Overlook Reston VA 1 319,519 80.3 % 46.50
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 68.27
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.20
Democracy Tower Reston VA 1 259,441 99.3 % 62.61
Fountain Square Retail 5 Reston VA 1 198,158 79.4 % 48.62
Two Reston Overlook Reston VA 1 134,615 100.0 % 49.84
Subtotal 16 3,815,246 92.3 % $ 52.60
7750 Wisconsin Avenue (50% ownership) 3, 4 Bethesda/Chevy Chase MD 1 735,573 100.0 % $ 38.00
Wisconsin Place Office Montgomery County MD 1 299,248 89.9 % 60.35
Shady Grove Innovation District 4, 8 North Rockville MD 4 232,278 65.2 % 18.17
Kingstowne Two Springfield VA 1 155,995 83.7 % 39.21 Q3 2022
--- ---
In-service property listing (continued) as of September 30, 2022
--- --- --- --- --- --- --- --- --- --- ---
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 36.9 % 40.47
Kingstowne Retail 5 Springfield VA 1 88,288 96.8 % 46.84
Subtotal 9 1,664,783 85.8 % $ 40.84
Washington, DC Office Total: 33 8,430,358 88.1 % $ 57.10
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: 35 9,303,515
Total In-Service Properties: 179 49,120,162 88.9 % 9 $ 75.74 9

_____________

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

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

3This is an unconsolidated joint venture property.

4Not included in the Same Property analysis.

5This is a retail property.

6Excludes a portion of the property that was placed in redevelopment during the three months ended September 30, 2022, including 760 Boylston Street, the stand-alone building consisting of approximately 118,000 square feet at Prudential Center (retail shops), and one building consisting of approximately 90,000 square feet at 140 Kendrick Street. For additional detail, see page 14.

7This property is held for redevelopment which is expected to commence upon the last lease expiration in 2023. To facilitate the redevelopment of the property, there is no rental obligation from the client.

8Property held for redevelopment.

9Excludes Hotel and Residential properties. For additional detail, see pages 19-20.

.

Q3 2022
Top 20 clients listing and portfolio client diversification

as of September 30, 2022

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 Salesforce 3.49 % 9.3
2 Google 2.76 % 14.8
3 Biogen 2.53 % 4.6
4 Akamai Technologies 2.15 % 12.1
5 WeWork 1.54 % 10.0
6 Fannie Mae 1.53 % 14.9
7 Kirkland & Ellis 1.53 % 15.1
8 Ropes & Gray 1.46 % 7.6
9 Microsoft 1.30 % 9.6
10 Millennium Management 1.29 % 8.3
11 Shearman & Sterling 1.23 % 16.1
12 Arnold & Porter Kaye Scholer 1.20 % 10.0
13 Wellington Management 1.19 % 11.0
14 Weil Gotshal & Manges 1.14 % 11.6
15 Bank of America 0.95 % 12.8
16 Morrison & Foerster 0.88 % 8.0
17 Snap 0.88 % 3.5
18 O'Melveny & Myers 0.85 % 2.2
19 Aramis (Estee Lauder) 0.84 % 17.5
20 Mass Financial Services 0.83 % 5.4
BXP’s Share of Annualized Rental Obligations 29.55 %
BXP’s Share of Square Feet 1 24.47 %
Weighted Average Remaining Lease Term (years) 10.4

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 4 290 Binney Street 4 570,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Genentech 751 Gateway 229,000
The Broad Institute 300 Binney Street 225,000
Volkswagen Group of America Reston Next 196,000

CLIENT DIVERSIFICATION 2

chart-bfeb49f53137458b9ab.jpg

_____________

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

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

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

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

Q3 2022
Occupancy by location

as of September 30, 2022

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

CBD Suburban Total
Location 30-Sep-22 30-Jun-22 30-Sep-22 30-Jun-22 30-Sep-22 30-Jun-22
Boston 94.8 % 94.6 % 83.4 % 84.4 % 91.4 % 91.5 %
Los Angeles 90.0 % 93.4 % — % — % 90.0 % 93.4 %
New York 89.0 % 90.0 % 78.0 % 78.5 % 86.9 % 87.8 %
San Francisco 89.3 % 89.9 % 80.6 % 76.7 % 87.3 % 86.9 %
Seattle 89.1 % 89.1 % — % — % 89.1 % 89.1 %
Washington, DC 83.9 % 85.3 % 90.3 % 92.0 % 88.1 % 89.4 %
Total Portfolio 90.6 % 91.2 % 84.9 % 85.5 % 88.9 % 89.5 %

chart-75aad8a2bbca4499baf.jpg

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

CBD Suburban Total
Location 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21 30-Sep-22 30-Sep-21
Boston 94.8 % 95.9 % 82.9 % 86.4 % 91.0 % 92.8 %
Los Angeles 90.0 % 83.4 % — % — % 90.0 % 83.4 %
New York 89.0 % 89.9 % 78.0 % 77.1 % 86.9 % 87.5 %
San Francisco 89.3 % 92.1 % 80.6 % 75.1 % 87.3 % 88.1 %
Seattle — % — % — % — % — % — %
Washington, DC 83.9 % 82.2 % 90.1 % 88.2 % 87.6 % 85.8 %
Total Portfolio 90.5 % 91.0 % 84.2 % 83.9 % 88.6 % 88.8 %

chart-88c136ef52f14c83b3a.jpg

_____________

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

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

Q3 2022
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit 340,000
Unsecured Term Loan 730,000
Unsecured Senior Notes, at face value 9,550,000
Outstanding Principal 13,920,000
Discount on Unsecured Senior Notes (14,391)
Deferred Financing Costs, Net (72,738)
Consolidated Debt $ 13,832,871

MORTGAGE NOTES PAYABLE

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

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

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

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,755 156,755 $ 11,751,922
Common Operating Partnership Units 18,215 18,215 1,365,579
Total Equity 174,970 $ 13,117,501
Consolidated Debt (A) $ 13,832,871
Add: BXP’s share of unconsolidated joint venture debt 3 1,450,624
Less: Partners’ share of consolidated debt 4 1,357,896
BXP’s Share of Debt 5 (B) $ 13,925,599
Consolidated Market Capitalization (C) $ 26,950,372
BXP’s Share of Market Capitalization 5 (D) $ 27,043,100
Consolidated Debt/Consolidated Market Capitalization (A÷C) 51.33 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 51.49 %

_____________

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

2Values are based on the September 30, 2022 closing price of $74.97 per share of BXP common stock.

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

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

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

Q3 2022
Debt analysis 1

as of September 30, 2022

(dollars in thousands)

chart-02e7f9d06fe24ab9b2f.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at September 30, 2022 Letters of Credit Remaining Capacity at September 30, 2022
Unsecured Line of Credit $ 1,500,000 $ 340,000 $ 6,425 $ 1,153,575

UNSECURED TERM LOAN - MATURES MAY 16, 2023

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

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 76.35 % 3.36 % 3.43 % 5.4
Secured Debt 23.65 % 3.24 % 3.42 % 6.1
Consolidated Debt 100.00 % 3.33 % 3.43 % 5.6

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt 7.74 % 3.40 % 3.43 % 1.6
Fixed Rate Debt 92.26 % 3.32 % 3.43 % 5.9
Consolidated Debt 100.00 % 3.33 % 3.43 % 5.6

_____________

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

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

Q3 2022
Senior unsecured debt covenant compliance ratios

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

This section presents such ratios as of September 30, 2022 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 46.5 % 43.2 %
Secured Debt/Total Assets Less than 50% 14.9 % 13.9 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 4.04 4.04
Unencumbered Assets/ Unsecured Debt Greater than 150% 243.1 % 265.4 %

_____________

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 2022
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
30-Sep-22 30-Jun-22
Net income attributable to Boston Properties, Inc. $ 360,977 $ 222,989
Add:
Noncontrolling interest - common units of the Operating Partnership 40,883 25,708
Noncontrolling interest in property partnerships 18,801 18,546
Net income 420,661 267,243
Add:
Interest expense 111,846 104,142
Losses from early extinguishments of debt — —
Depreciation and amortization expense 190,675 183,146
Less:
Gains on sales of real estate 262,345 96,247
Loss from unconsolidated joint ventures (3,524) (54)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 35,709 35,401
EBITDAre 1 500,070 493,739
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 48,478 47,810
BXP’s Share of EBITDAre 1 (A) 451,592 445,929
Add:
Stock-based compensation expense 7,695 14,630
BXP’s Share of straight-line ground rent expense adjustment 1 944 891
BXP’s Share of lease transaction costs that qualify as rent inducements 1 6,047 4,539
Less:
BXP’s Share of straight-line rent 1 33,817 30,401
BXP’s Share of fair value lease revenue 1 2,933 2,411
Non-cash losses from early extinguishments of debt — —
BXP’s Share of EBITDAre – cash 1 $ 429,528 $ 433,177
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,806,368 $ 1,783,716

Reconciliation of BXP’s Share of Net Debt 1

30-Sep-22 30-Jun-22
Consolidated debt $ 13,832,871 $ 13,652,773
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 375,774 456,491
Cash held in escrow for 1031 exchange 26,729 —
Net debt 1 13,430,368 13,196,282
Add:
BXP’s share of unconsolidated joint venture debt 2 1,450,624 1,446,617
Partners’ share of cash and cash equivalents from consolidated joint ventures 107,080 126,387
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 99,081 110,006
Partners’ share of consolidated joint venture debt 3 1,357,896 1,357,399
BXP’s Share of Net Debt 1 (B) $ 13,531,095 $ 13,301,881
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.49 7.46

_____________

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

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

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

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

Q3 2022
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
30-Sep-22 30-Jun-22
BXP’s Share of interest expense 1 $ 117,623 $ 106,627
Less:
BXP’s Share of hedge amortization, net of costs 1 200 1,446
BXP’s Share of amortization of financing costs 1 5,028 4,419
Adjusted interest expense excluding capitalized interest (A) 112,395 100,762
Add:
BXP’s Share of capitalized interest 1 13,404 14,679
Adjusted interest expense including capitalized interest (B) $ 125,799 $ 115,441
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 429,528 $ 433,177
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.82 4.30
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.41 3.75

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
30-Sep-22 30-Jun-22
BXP’s Share of interest expense 1 $ 117,623 $ 106,627
Less:
BXP’s Share of hedge amortization, net of costs 1 200 1,446
BXP’s Share of amortization of financing costs 1 5,028 4,419
Add:
BXP’s Share of capitalized interest 1 13,404 14,679
BXP’s Share of maintenance capital expenditures 1 15,520 15,818
Hotel improvements, equipment upgrades and replacements 148 88
Total Fixed Charges (A) $ 141,467 $ 131,347
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 429,528 $ 433,177
Fixed Charge Coverage Ratio (B÷A) 3.04 3.30

_____________

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

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

Q3 2022
Consolidated joint ventures

d

as of September 30, 2022

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,200,942 $ 2,245,392 $ 5,446,334
Cash and cash equivalents 100,501 148,623 249,124
Other assets 303,891 366,359 670,250
Total assets $ 3,605,334 $ 2,760,374 $ 6,365,708
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,283,609 $ 987,520 $ 3,271,129
Other liabilities 85,659 84,013 169,672
Total liabilities 2,369,268 1,071,533 3,440,801
Equity:
Boston Properties, Inc. 743,224 630,060 1,373,284
Noncontrolling interests 492,842 1,058,781 1,551,623 2
Total equity 1,236,066 1,688,841 2,924,907
Total liabilities and equity $ 3,605,334 $ 2,760,374 $ 6,365,708
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 40,200 $ 66,880 $ 107,080
Partners’ share of consolidated debt 3 $ 913,512 4 $ 444,384 $ 1,357,896

_____________

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 2022
Consolidated joint ventures (continued)

for the three months ended September 30, 2022

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 74,210 $ 101,562 $ 175,772
Straight-line rent 4,715 2,616 7,331
Fair value lease revenue 327 21 348
Termination income — 127 127
Total lease revenue 79,252 104,326 183,578
Parking and other — 1,529 1,529
Total rental revenue 2 79,252 105,855 185,107
Expenses
Operating 30,562 38,432 68,994
Net Operating Income (NOI) 48,690 67,423 116,113
Other income (expense)
Interest and other income 295 392 687
Interest expense (21,234) (7,733) (28,967)
Depreciation and amortization expense (16,888) (22,762) (39,650)
General and administrative expense (43) (123) (166)
Total other income (expense) (37,870) (30,226) (68,096)
Net income $ 10,820 $ 37,197 $ 48,017

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 $ 10,820 $ 37,197 $ 48,017
Add: Depreciation and amortization expense 16,888 22,762 39,650
Entity FFO $ 27,708 $ 59,959 $ 87,667
Partners’ NCI 3 $ 3,289 $ 15,512 $ 18,801
Partners’ share of depreciation and amortization expense after BXP’s basis differential 3 7,156 10,550 17,706
Partners’ share FFO 3 $ 10,445 $ 26,062 $ 36,507
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,531 $ 21,685 $ 29,216
Depreciation and amortization expense - BXP’s basis difference 44 397 441
BXP’s share of depreciation and amortization expense 9,688 11,815 21,503
BXP’s share of FFO $ 17,263 $ 33,897 $ 51,160

_____________

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

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

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

Q3 2022
Unconsolidated joint ventures 1

as of September 30, 2022

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Mezzanine/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 59,379 168,414 September 5, 2023 3.72 % 3.93 %
Podium 50.00 % 48,571 87,030 September 6, 2023 4.78 % 4.94 %
Hub50House 50.00 % 45,662 91,837 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 12,165 — — — % — %
1265 Main Street 50.00 % 3,358 17,777 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 166,302 164,186 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 234,271 274,565 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 27,017 — — — % — %
New York
Dock 72 3 50.00 % 27,772 98,864 December 18, 2023 5.45 % 5.72 %
360 Park Avenue South 4 42.21 % 112,772 86,456 December 14, 2024 4.87 % 5.33 %
3 Hudson Boulevard 5 25.00 % 116,678 19,988 July 13, 2023 5.80 % 5.88 %
San Francisco
Platform 16 55.00 % 143,558 — — — % — %
Gateway Commons 50.00 % 314,137 — — — % — %
751 Gateway 49.00 % 71,820 — — — % — %
Seattle
Safeco Plaza 6 33.67 % 70,889 83,727 September 1, 2026 4.41 % 4.55 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 52,656 126,538 April 26, 2023 3.39 % 3.93 %
1001 6th Street 50.00 % 42,922 — — — % — %
Market Square North 50.00 % (5,759) 62,179 November 10, 2025 4.64 % 4.80 %
Wisconsin Place Parking Facility 33.33 % 32,638 — — — % — %
500 North Capitol Street, N.W. 30.00 % (9,432) 31,488 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,506) 53,237 January 5, 2025 3.61 % 3.69 %
Reston Next Residential 7 20.00 % 11,267 1,333 May 13, 2026 4.75 % 5.06 %
Metropolitan Square 6 20.00 % (39,318) 83,005 April 9, 2024 5.12 % 5.90 %
1,526,819
Investments with deficit balances reflected within Other Liabilities 67,015
Investments in Unconsolidated Joint Ventures $ 1,593,834
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,450,624

chart-3a97cf6f66bf4922b1d.jpg

Q3 2022
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 56.36 % 4.45 % 4.78 % 1.6
Fixed Rate Debt 43.64 % 3.86 % 3.94 % 4.7
Total Debt 100.00 % 4.19 % 4.41 % 3.0

_____________

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

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

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

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

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

6 Safeco Plaza and Metropolitan Square entered into interest rate cap agreements which capped SOFR to 2.50% and 4.50% per annum, respectively.

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

Q3 2022
Unconsolidated joint ventures (continued)

for the three months ended September 30, 2022

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,872 $ 28,447 $ 3,731 $ 11,152 $ 6,821 $ 33,938 $ 108,961
Straight-line rent 1,097 5,782 60 114 870 1,635 9,558
Fair value lease revenue — 270 — 23 1,153 — 1,446
Termination income — 1,000 — — — — 1,000
Total lease revenue 25,969 35,499 3,791 11,289 8,844 35,573 120,965
Parking and other 17 3,534 47 195 578 1,802 6,173
Total rental revenue 3 25,986 39,033 3,838 11,484 9,422 37,375 127,138
Expenses
Operating 9,645 14,564 4,964 4,595 3,546 15,484 52,798
Net operating income/(loss) 16,341 24,469 (1,126) 6,889 5,876 21,891 74,340
Other income/(expense)
Development and management services revenue — — 606 — — 27 633
Interest and other income 48 5 5 3 37 127 225
Interest expense (7,983) (11,984) (4,227) (6) (3,078) (13,400) (40,678)
Transaction costs (139) (4) — 325 (42) (75) 65
Depreciation and amortization expense (8,279) (12,681) (2,776) (4,677) (6,029) (9,690) (44,132)
General and administrative expense (24) 20 (26) (8) (16) (34) (88)
Total other income/(expense) (16,377) (24,644) (6,418) (4,363) (9,128) (23,045) (83,975)
Net income/(loss) $ (36) $ (175) $ (7,544) $ 2,526 $ (3,252) $ (1,154) $ (9,635)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (18) $ (292) $ (3,087) $ 1,262 $ (1,095) $ 979 4 $ (2,251)
Basis differential
Straight-line rent $ — $ 91 5 $ — $ 7 5 $ — $ — $ 98
Fair value lease revenue — 301 5 — (219) 5 — — 82
Transaction costs — — — (161) 5 — — (161)
Depreciation and amortization expense (13) (1,071) 5 373 (506) 5 42 (117) (1,292)
Total basis differential 6 (13) (679) 5 373 (879) 5 42 (117) (1,273)
Income/(loss) from unconsolidated joint ventures (31) (971) (2,714) 383 (1,053) 862 4 (3,524)
Add:
BXP’s share of depreciation and amortization expense 4,152 7,784 1,015 2,830 1,988 3,716 4 21,485
BXP’s share of FFO $ 4,121 $ 6,813 $ (1,699) $ 3,213 $ 935 $ 4,578 $ 17,961

_____________

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

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

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

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

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

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

Q3 2022
Lease expirations - All in-service properties1, 2, 3

as of September 30, 2022

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2022 895,939 41,319,867 50.76 2.18 % 4
2023 2,060,425 115,228,614 66.76 4.62 %
2024 3,534,119 193,481,165 62.44 8.29 %
2025 2,621,713 164,157,727 68.12 6.45 %
2026 3,080,103 194,766,561 76.41 6.82 %
2027 2,363,864 149,717,614 70.41 5.69 %
2028 3,428,708 217,856,595 80.17 7.27 %
2029 3,026,377 189,532,401 71.52 7.09 %
2030 2,668,678 189,432,655 74.34 6.82 %
2031 1,969,342 146,447,543 80.07 4.89 %
Thereafter 14,500,143 900,820,022 78.65 30.65 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2022 149,879 2,986,197 20.02 6.85 %
2023 71,462 5,664,856 81.83 3.18 %
2024 116,418 11,806,197 108.48 4.99 %
2025 135,311 8,351,686 76.27 5.02 %
2026 91,365 15,443,844 191.93 3.69 %
2027 122,437 13,102,667 116.97 5.14 %
2028 121,234 11,473,899 97.27 5.41 %
2029 116,382 10,620,691 114.10 4.27 %
2030 200,137 11,685,006 72.02 7.45 %
2031 56,698 4,174,250 88.97 2.15 %
Thereafter 724,851 65,334,505 114.36 26.22 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2022 1,045,818 44,306,064 46.00 2.44 % 4
2023 2,131,887 120,893,470 67.34 4.54 %
2024 3,650,537 205,287,362 64.01 8.11 %
2025 2,757,024 172,509,413 68.47 6.37 %
2026 3,171,468 210,210,405 79.95 6.65 %
2027 2,486,301 162,820,281 72.74 5.66 %
2028 3,549,942 229,330,494 80.88 7.17 %
2029 3,142,759 200,153,092 72.97 6.94 %
2030 2,868,815 201,117,661 74.20 6.85 %
2031 2,026,040 150,621,793 80.29 4.74 %
Thereafter 15,224,994 966,154,527 80.34 30.41 %

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 378,699 378,699 4
2023 767,732 638,814
2024 826,238 779,758
2025 1,043,152 1,024,008
2026 777,131 745,820
2027 632,755 624,955
2028 1,128,725 1,128,725
2029 1,039,275 909,689
2030 1,365,682 1,359,009
2031 558,878 491,442
Thereafter 4,708,184 3,834,745

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 125,853 125,853
2023 18,553 18,238
2024 33,306 33,306
2025 41,202 41,202
2026 26,512 26,512
2027 67,909 61,595
2028 75,560 75,560
2029 51,277 49,927
2030 91,335 56,940
2031 4,266 4,266
Thereafter 254,190 213,102

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 504,552 504,552 4
2023 786,285 657,052
2024 859,544 813,064
2025 1,084,354 1,065,210
2026 803,643 772,332
2027 700,664 686,550
2028 1,204,285 1,204,285
2029 1,090,552 959,616
2030 1,457,017 1,415,949
2031 563,144 495,708
Thereafter 4,962,374 4,047,847

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 108,236 108,236 4
Q4 2022 270,463 270,463
Total 2022 378,699 378,699
Q1 2023 220,511 157,909
Q2 2023 179,202 172,102
Q3 2023 109,939 94,788
Q4 2023 258,080 214,014
Total 2023 767,732 638,814

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 125,853 125,853
Total 2022 125,853 125,853
Q1 2023 4,457 4,142
Q2 2023 5,486 5,486
Q3 2023 2,443 2,443
Q4 2023 6,167 6,167
Total 2023 18,553 18,238

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 108,236 108,236 4
Q4 2022 396,316 396,316
Total 2022 504,552 504,552
Q1 2023 224,968 162,051
Q2 2023 184,688 177,588
Q3 2023 112,382 97,231
Q4 2023 264,247 220,181
Total 2023 786,285 657,052

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 40,631 22,347
2023 67,927 37,360
2024 132,131 72,672
2025 12,255 6,740
2026 602,745 331,510
2027 27,999 15,399
2028 303,413 157,097
2029 349,913 174,957
2030 — —
2031 — —
Thereafter 428,566 214,470

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 — —
2023 1,405 703
2024 4,333 2,283
2025 36,406 18,975
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
2031 — —
Thereafter 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
2022 40,631 22,347
2023 69,332 38,063
2024 136,464 74,955
2025 48,661 25,715
2026 608,572 334,715
2027 27,999 15,399
2028 303,413 157,097
2029 388,031 195,922
2030 5,283 2,906
2031 — —
Thereafter 446,559 223,467

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

Q3 2022
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 40,631 22,347
Total 2022 40,631 22,347
Q1 2023 63,925 35,159
Q2 2023 — —
Q3 2023 4,002 2,201
Q4 2023 — —
Total 2023 67,927 37,360

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —
Q1 2023 1,405 703
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 1,405 703

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 40,631 22,347
Total 2022 40,631 22,347
Q1 2023 65,330 35,862
Q2 2023 — —
Q3 2023 4,002 2,201
Q4 2023 — —
Total 2023 69,332 38,063

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

Q3 2022
Lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 250,824 220,943 4
2023 293,180 193,371
2024 1,303,758 1,059,745
2025 566,908 522,148
2026 476,509 400,981
2027 441,268 383,603
2028 589,079 415,176
2029 663,129 636,762
2030 726,239 683,697
2031 376,287 340,492
Thereafter 4,219,431 3,133,902

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
2022 178 107
2023 2,562 1,823
2024 11,244 8,623
2025 4,179 4,179
2026 20,470 17,664
2027 — —
2028 — —
2029 3,135 3,135
2030 2,895 2,053
2031 13,633 10,123
Thereafter 252,900 169,638

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 251,002 221,050 4
2023 295,742 195,194
2024 1,315,002 1,068,368
2025 571,087 526,327
2026 496,979 418,645
2027 441,268 383,603
2028 589,079 415,176
2029 666,264 639,897
2030 729,134 685,750
2031 389,920 350,615
Thereafter 4,472,331 3,303,540

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2022
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 59,762 29,881 4
Q4 2022 191,062 191,062
Total 2022 250,824 220,943
Q1 2023 71,318 44,348
Q2 2023 43,145 26,353
Q3 2023 111,063 77,929
Q4 2023 67,654 44,741
Total 2023 293,180 193,371

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 178 107
Total 2022 178 107
Q1 2023 715 715
Q2 2023 — —
Q3 2023 — —
Q4 2023 1,847 1,108
Total 2023 2,562 1,823

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 59,762 29,881 4
Q4 2022 191,240 191,169
Total 2022 251,002 221,050
Q1 2023 72,033 45,063
Q2 2023 43,145 26,353
Q3 2023 111,063 77,929
Q4 2023 69,501 45,849
Total 2023 295,742 195,194

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2022
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 61,043 46,798 4
2023 598,062 547,818
2024 660,615 609,052
2025 650,777 628,441
2026 661,169 573,720
2027 504,462 493,498
2028 525,954 513,698
2029 276,575 258,291
2030 353,507 339,079
2031 816,495 802,173
Thereafter 1,010,147 979,630

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 3,050 3,050
2023 26,647 26,647
2024 7,516 7,516
2025 27,647 27,647
2026 6,955 6,955
2027 12,951 12,951
2028 13,314 13,314
2029 6,216 6,216
2030 5,267 5,267
2031 6,709 3,355
Thereafter 39,591 39,591

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 64,093 49,848 71.43 4
2023 624,709 574,465
2024 668,131 616,568
2025 678,424 656,088
2026 668,124 580,675
2027 517,413 506,449
2028 539,268 527,012
2029 282,791 264,507
2030 358,774 344,346
2031 823,204 805,528
Thereafter 1,049,738 1,019,221

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2022
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 9,505 9,505 4
Q4 2022 51,538 37,293
Total 2022 61,043 46,798
Q1 2023 80,513 76,872
Q2 2023 33,584 19,107
Q3 2023 342,077 339,988
Q4 2023 141,888 111,852
Total 2023 598,062 547,818

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 3,050 3,050
Total 2022 3,050 3,050
Q1 2023 5,392 5,392
Q2 2023 1,218 1,218
Q3 2023 12,345 12,345
Q4 2023 7,692 7,692
Total 2023 26,647 26,647

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 9,505 9,505 4
Q4 2022 54,588 40,343
Total 2022 64,093 49,848
Q1 2023 85,905 82,264
Q2 2023 34,802 20,325
Q3 2023 354,422 352,333
Q4 2023 149,580 119,544
Total 2023 624,709 574,465

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q3 2022
Lease expirations - Seattle region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 25,028 10,045 4
2023 29,198 15,610
2024 31,366 12,134
2025 21,163 7,126
2026 33,201 33,201
2027 189,746 186,827
2028 669,079 332,548
2029 111,494 111,494
2030 55,243 55,243
2031 94,744 91,599
Thereafter 85,034 58,222

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 — —
2023 — —
2024 1,040 350
2025 — —
2026 3,686 1,241
2027 — —
2028 4,663 4,663
2029 — —
2030 — —
2031 3,048 3,048
Thereafter — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 25,028 10,045 4
2023 29,198 15,610
2024 32,406 12,484
2025 21,163 7,126
2026 36,887 34,442
2027 189,746 186,827
2028 673,742 337,211
2029 111,494 111,494
2030 55,243 55,243
2031 97,792 94,647
Thereafter 85,034 58,222

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 12,838 4,323 4
Q4 2022 12,190 5,722
Total 2022 25,028 10,045
Q1 2023 2,214 745
Q2 2023 — —
Q3 2023 — —
Q4 2023 26,984 14,864
Total 2023 29,198 15,610

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 12,838 4,323 4
Q4 2022 12,190 5,722
Total 2022 25,028 10,045
Q1 2023 2,214 745
Q2 2023 — —
Q3 2023 — —
Q4 2023 26,984 14,864
Total 2023 29,198 15,610

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 139,714 135,226 4
2023 304,326 292,964
2024 580,011 565,147
2025 327,458 221,499
2026 529,348 463,687
2027 567,634 422,230
2028 212,458 170,202
2029 585,991 558,717
2030 168,007 111,115
2031 122,938 103,253
Thereafter 4,048,781 3,233,046

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 20,798 20,164
2023 22,295 21,819
2024 58,979 56,752
2025 25,877 17,497
2026 27,915 24,891
2027 41,577 37,475
2028 27,697 24,421
2029 17,636 12,839
2030 95,357 95,082
2031 29,042 26,127
Thereafter 160,177 139,985

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 160,512 155,390 4
2023 326,621 314,783
2024 638,990 621,899
2025 353,335 238,996
2026 557,263 488,578
2027 609,211 459,705
2028 240,155 194,623
2029 603,627 571,556
2030 263,364 206,197
2031 151,980 129,380
Thereafter 4,208,958 3,373,031

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of September 30, 2022

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 34,269 34,269 4
Q4 2022 105,445 100,957
Total 2022 139,714 135,226
Q1 2023 48,461 48,461
Q2 2023 43,687 41,327
Q3 2023 148,010 140,479
Q4 2023 64,168 62,697
Total 2023 304,326 292,964

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 20,798 20,164
Total 2022 20,798 20,164
Q1 2023 7,775 7,775
Q2 2023 4,373 4,373
Q3 2023 6,655 6,655
Q4 2023 3,492 3,016
Total 2023 22,295 21,819

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2022 — —
Q2 2022 — —
Q3 2022 34,269 34,269 4
Q4 2022 126,243 121,121
Total 2022 160,512 155,390
Q1 2023 56,236 56,236
Q2 2023 48,060 45,700
Q3 2023 154,665 147,134
Q4 2023 67,660 65,713
Total 2023 326,621 314,783

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Lease expirations - CBD properties 1, 2, 3

as of September 30, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 142,848 142,848 4
2023 526,302 397,069
2024 332,978 286,498
2025 334,993 315,849
2026 560,622 529,311
2027 521,924 507,809
2028 1,069,454 1,069,454
2029 698,152 567,216
2030 1,300,996 1,259,928
2031 28,779 21,683
Thereafter 4,623,367 3,708,840

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 40,631 22,347
2023 69,332 38,062
2024 136,464 74,955
2025 48,661 25,716
2026 608,572 334,715
2027 27,999 15,399
2028 303,413 157,097
2029 388,031 195,921
2030 5,283 2,906
2031 — —
Thereafter 446,559 223,466

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 140,499 110,547 4
2023 253,657 153,109
2024 815,979 569,345
2025 326,653 281,893
2026 255,579 177,244
2027 197,448 139,783
2028 569,107 395,204
2029 597,949 571,582
2030 681,960 638,576
2031 228,644 189,339
Thereafter 4,338,557 3,169,766

All values are in US Dollars.

Q3 2022
Lease expirations - CBD properties (continued) 1, 2, 3

as of September 30, 2022

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 32,852 32,852 4
2023 329,633 329,633
2024 500,075 500,075
2025 332,346 332,346
2026 493,225 493,225
2027 413,144 413,144
2028 514,756 514,756
2029 246,223 246,223
2030 277,390 277,390
2031 787,850 787,850
Thereafter 988,703 988,703

All values are in US Dollars.

Seattle, WA

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 25,028 10,045 4
2023 29,198 15,610
2024 32,406 12,484
2025 21,163 7,126
2026 36,887 34,442
2027 189,746 186,827
2028 673,742 337,211
2029 111,494 111,494
2030 55,243 55,243
2031 97,792 94,647
Thereafter 85,034 58,222

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 81,474 76,352 4
2023 57,041 45,203
2024 119,185 102,094
2025 173,879 59,540
2026 338,009 269,324
2027 229,996 80,490
2028 150,372 104,840
2029 86,288 54,217
2030 90,263 33,096
2031 80,737 58,136
Thereafter 1,053,090 584,949

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Lease expirations - Suburban properties 1, 2, 3

as of September 30, 2022

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 361,704 361,704 4
2023 259,983 259,983
2024 526,566 526,566
2025 749,361 749,361
2026 243,021 243,021
2027 178,740 178,740
2028 134,831 134,831
2029 392,400 392,400
2030 156,021 156,021
2031 534,365 474,025
Thereafter 339,007 339,007

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 110,503 110,503
2023 42,085 42,085
2024 499,023 499,023
2025 244,434 244,434
2026 241,400 241,400
2027 243,820 243,820
2028 19,972 19,972
2029 68,315 68,315
2030 47,174 47,174
2031 161,276 161,276
Thereafter 133,774 133,774

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 31,241 16,996
2023 295,076 244,832
2024 168,056 116,493
2025 346,078 323,742
2026 174,899 87,450
2027 104,269 93,305
2028 24,512 12,256
2029 36,568 18,284
2030 81,384 66,956
2031 35,354 17,677
Thereafter 61,035 30,518

All values are in US Dollars.

Q3 2022
Lease expirations - Suburban properties (continued) 1, 2, 3

as of September 30, 2022

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2022 79,038 79,038 4
2023 269,580 269,580
2024 519,805 519,805
2025 179,456 179,456
2026 219,254 219,254
2027 379,215 379,215
2028 89,783 89,783
2029 517,339 517,339
2030 173,101 173,101
2031 71,243 71,243
Thereafter 3,155,868 2,788,082

All values are in US Dollars.

_____________

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

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

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

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

Q3 2022
Research coverage

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

Equity Research Coverage
Argus Research Company Marie Ferguson 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Camille Bonnel 646.855.1363 / 416.369.2140
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Nicholas Joseph / Michael Griffin 212.816.1909 / 212.816.5871
Credit Suisse Tayo Okusanya 212.325.1402
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Jonathan Peterson 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Todd Thomas 917.368.2286
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
RW Baird & Co., Inc. David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
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Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605 Rating Agencies
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Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q3 2022
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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 59.

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q3 2022
Definitions (continued)

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q3 2022
Definitions (continued)

Funds from Operations (FFO)

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

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

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q3 2022
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q3 2022
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
30-Sep-22 30-Jun-22
Revenue $ 790,523 $ 773,927
Partners’ share of revenue from consolidated joint ventures (JVs) (79,336) (77,142)
BXP’s share of revenue from unconsolidated JVs 59,938 56,648
BXP’s Share of revenue $ 771,125 $ 753,433
Straight-line rent $ 32,140 $ 21,601
Partners’ share of straight-line rent from consolidated JVs (3,063) (83)
BXP’s share of straight-line rent from unconsolidated JVs 4,740 8,883
BXP’s Share of straight-line rent $ 33,817 $ 30,401
Reinstatements associated with accrued rent (all of which was included within straight-line rent) 1 $ — $ 483
Partners’ share of reinstatements associated with accrued rent from consolidated JVs (all of which was included within straight-line rent) 1 — —
BXP’s share of reinstatements associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent) 1 — —
BXP’s Share of reinstatements associated with accrued rent (all of which was included within straight-line rent), net 1 $ — $ 483
Fair value lease revenue 2 $ 2,442 $ 1,919
Partners’ share of fair value lease revenue from consolidated JVs 2 (140) (142)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 631 634
BXP’s Share of fair value lease revenue 2 $ 2,933 $ 2,411
Lease termination income $ 1,981 $ 1,922
Partners’ share of termination income from consolidated JVs (57) (641)
BXP’s share of termination income from unconsolidated JVs 500 (1)
BXP’s Share of termination income $ 2,424 $ 1,280
Non-cash termination income adjustment (fair value lease amounts) $ — $ —
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs — —
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs — —
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) $ — $ —
Parking and other revenue $ 26,259 $ 26,474
Partners’ share of parking and other revenue from consolidated JVs (688) (621)
BXP’s share of parking and other revenue from unconsolidated JVs 2,789 2,026
BXP’s Share of parking and other revenue $ 28,360 $ 27,879
Hedge amortization, net of costs $ 1,590 $ 1,590
Partners’ share of hedge amortization, net of costs from consolidated JVs (144) (144)
BXP’s share of hedge amortization, net of costs from unconsolidated JVs (1,246) —
BXP’s Share of hedge amortization, net of costs $ 200 $ 1,446
Straight-line ground rent expense adjustment $ 800 $ 746
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 144 145
BXP’s Share of straight-line ground rent expense adjustment $ 944 $ 891
Depreciation and amortization $ 190,675 $ 183,146
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,706) (17,414)
BXP’s share of depreciation and amortization from unconsolidated JVs 21,485 21,120
BXP’s Share of depreciation and amortization $ 194,454 $ 186,852 Q3 2022
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
30-Sep-22 30-Jun-22
Lease transaction costs that qualify as rent inducements 3 $ 4,667 $ 4,452
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 — —
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 1,380 87
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 6,047 $ 4,539
2nd generation tenant improvements and leasing commissions $ 184,826 $ 128,465
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (18,615) (41,402)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 3,548 3,926
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 169,759 $ 90,989 Maintenance capital expenditures 4 $ 16,808 $ 16,256
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (1,889) (1,460)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 601 1,022
BXP’s Share of maintenance capital expenditures 4 $ 15,520 $ 15,818
Interest expense $ 111,846 $ 104,142
Partners’ share of interest expense from consolidated JVs (11,971) (11,850)
BXP’s share of interest expense from unconsolidated JVs 17,748 14,335
BXP’s Share of interest expense $ 117,623 $ 106,627
Capitalized interest $ 12,230 $ 14,079
Partners’ share of capitalized interest from consolidated JVs (64) (63)
BXP’s share of capitalized interest from unconsolidated JVs 1,238 663
BXP’s Share of capitalized interest $ 13,404 $ 14,679
Amortization of financing costs $ 4,772 $ 4,169
Partners’ share of amortization of financing costs from consolidated JVs (497) (499)
BXP’s share of amortization of financing costs from unconsolidated JVs 753 749
BXP’s Share of amortization of financing costs $ 5,028 $ 4,419

_____________

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

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

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

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

Q3 2022
Reconciliations (continued)

for the three months ended September 30, 2022

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 74,210 $ 101,562 $ 175,772
Straight-line rent 4,715 2,616 7,331
Fair value lease revenue 327 21 348
Termination income — 127 127
Total lease revenue 79,252 104,326 183,578
Parking and other — 1,529 1,529
Total rental revenue 2 79,252 105,855 185,107
Expenses
Operating 30,562 38,432 68,994
Net Operating Income (NOI) 48,690 67,423 116,113
Other income (expense)
Interest and other income 295 392 687
Interest expense (21,234) (7,733) (28,967)
Depreciation and amortization expense (16,888) (22,762) (39,650)
General and administrative expense (43) (123) (166)
Total other income (expense) (37,870) (30,226) (68,096)
Net income $ 10,820 $ 37,197 $ 48,017
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 18,838 $ 29,468 $ 48,306
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,852 $ 37,955 $ 67,807
Unearned portion of capitalized fees 4 $ 317 $ 776 $ 1,093
Partners’ share of select items 3
Partners’ share of parking and other revenue $ — $ 688 $ 688
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 151 $ 497
Partners’ share of depreciation and amortization related to capitalized fees $ 418 $ 486 $ 904
Partners’ share of capitalized interest $ 64 $ — $ 64
Partners’ share of management and other fees $ 642 $ 881 $ 1,523
Partners’ share of basis differential depreciation and amortization expense $ (18) $ (179) $ (197)
Partners’ share of basis differential interest and other adjustments $ (4) $ 39 $ 35
Reconciliation of Partners’ share of EBITDAre 5
Partners’ NCI $ 3,289 $ 15,512 $ 18,801
Add:
Partners’ share of interest expense after BXP’s basis differential 8,491 3,480 11,971
Partners’ share of depreciation and amortization expense after BXP’s basis differential 7,156 10,550 17,706
Partners’ share of EBITDAre $ 18,936 $ 29,542 $ 48,478
Q3 2022
--- ---
Reconciliations (continued)

for the three months ended September 30, 2022

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 3 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 2 $ 31,701 $ 47,635 $ 79,336
Less: Termination income — 57 57
Rental revenue (excluding termination income) 2 31,701 47,578 79,279
Less: Operating expenses (including partners’ share of management and other fees) 12,863 18,167 31,030
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,838 $ 29,411 $ 48,249
Rental revenue (excluding termination income) 2 $ 31,701 $ 47,578 $ 79,279
Less: Straight-line rent 1,886 1,177 2 3,063
Fair value lease revenue 131 9 140
Subtotal 29,684 46,392 76,076
Less: Operating expenses (including partners’ share of management and other fees) 12,863 18,167 31,030
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,821 $ 28,225 $ 45,046
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 31,701 $ 47,635 $ 79,336
Add: Development and management services revenue — — —
Revenue $ 31,701 $ 47,635 $ 79,336

_________

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

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

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

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

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

Q3 2022
Reconciliations (continued)

for the three months ended September 30, 2022

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,872 $ 28,447 $ 3,731 $ 11,152 $ 6,821 $ 33,938 $ 108,961
Straight-line rent 1,097 5,782 60 114 870 1,635 9,558
Fair value lease revenue — 270 — 23 1,153 — 1,446
Termination income — 1,000 — — — — 1,000
Total lease revenue 25,969 35,499 3,791 11,289 8,844 35,573 120,965
Parking and other 17 3,534 47 195 578 1,802 6,173
Total rental revenue 3 25,986 39,033 3,838 11,484 9,422 37,375 127,138
Expenses
Operating 9,645 14,564 4,964 4 4,595 3,546 15,484 52,798
Net operating income/(loss) 16,341 24,469 (1,126) 6,889 5,876 21,891 74,340
Other income/(expense)
Development and management services revenue — — 606 — — 27 633
Interest and other income 48 5 5 3 37 127 225
Interest expense (7,983) (11,984) (4,227) (6) (3,078) (13,400) (40,678)
Transaction costs (139) (4) — 325 (42) (75) 65
Depreciation and amortization expense (8,279) (12,681) (2,776) (4,677) (6,029) (9,690) (44,132)
General and administrative expense (24) 20 (26) (8) (16) (34) (88)
Total other income/(expense) (16,377) (24,644) (6,418) (4,363) (9,128) (23,045) (83,975)
Net income/(loss) $ (36) $ (175) $ (7,544) $ 2,526 $ (3,252) $ (1,154) $ (9,635)
BXP’s share of select items:
BXP’s share of parking and other revenue $ 9 $ 1,853 $ 24 $ 98 $ 195 $ 610 5 $ 2,789
BXP’s share of amortization of financing costs $ 167 $ 90 $ 79 $ — $ 28 $ 389 5 $ 753
BXP’s share of hedge amortization, net of costs $ — $ — $ — $ — $ (928) $ (318) $ (1,246)
BXP’s share of capitalized interest $ — $ — $ 1,234 $ — $ — $ 4 5 $ 1,238
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ (31) $ (971) $ (2,714) $ 383 $ (1,053) $ 862 5 $ (3,524)
Add:
BXP’s share of interest expense 3,992 6,340 1,756 3 1,036 4,621 5 17,748
BXP’s share of depreciation and amortization expense 4,152 7,784 6 1,015 2,830 6 1,988 3,716 5 21,485
BXP’s share of EBITDAre $ 8,113 $ 13,153 6 $ 57 $ 3,216 6 $ 1,971 $ 9,199 5 $ 35,709 Q3 2022
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 12,992 $ 20,817 6 $ 1,919 $ 5,530 6 $ 3,172 $ 15,191 5 $ 59,621
BXP’s share of operating expenses 4,823 7,674 2,178 2,297 1,194 6,139 5 24,305
BXP’s share of net operating income/(loss) 8,169 13,143 6 (259) 3,233 6 1,978 9,052 5 35,316
Less:
BXP’s share of termination income — 500 — — — — 500
BXP’s share of net operating income/(loss) (excluding termination income) 8,169 12,643 (259) 3,233 1,978 9,052 5 34,816
Less:
BXP’s share of straight-line rent 548 3,054 6 30 64 6 293 751 5 4,740
BXP’s share of fair value lease revenue — 450 6 — (207) 6 388 — 631
Add:
BXP’s share of straight-line ground rent expense adjustment — — 144 — — — 144
BXP’s share of lease transaction costs that qualify as rent inducements — 1,350 — — — 30 5 1,380
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 7,621 $ 10,489 6 $ (145) $ 3,376 6 $ 1,297 $ 8,331 5 $ 30,969
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 12,992 $ 20,817 6 $ 1,919 $ 5,530 6 $ 3,172 $ 15,191 5 $ 59,621
Add:
BXP’s share of development and management services revenue — — 303 — — 14 317
BXP’s share of revenue $ 12,992 $ 20,817 6 $ 2,222 $ 5,530 6 $ 3,172 $ 15,205 5 $ 59,938

_____________

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

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

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

4 Includes approximately $288 of straight-line ground rent expense.

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

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

Q3 2022
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-June-22 30-June-21
Net income attributable to Boston Properties, Inc. $ 222,989 $ 111,703
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 25,708 12,383
Noncontrolling interest in property partnerships 18,546 17,164
Net income 267,243 141,250
Add:
Interest expense 104,142 106,319
Depreciation and amortization expense 183,146 183,838
Transaction costs 496 751
Payroll and related costs from management services contracts 3,239 2,655
General and administrative expense 34,665 38,405
Less:
Other income - assignment fee 6,624 —
Interest and other income (loss) 1,195 1,452
Gains (losses) from investments in securities (4,716) 2,275
Gains on sales of real estate 96,247 7,756
Loss from unconsolidated joint ventures (54) (1,373)
Direct reimbursements of payroll and related costs from management services contracts 3,239 2,655
Development and management services revenue 6,354 7,284
Net Operating Income (NOI) 484,042 453,169
Add:
BXP’s share of NOI from unconsolidated joint ventures 35,710 25,417
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 47,862 46,287
BXP’s Share of NOI 471,890 432,299
Less:
Termination income 1,922 5,355
BXP’s share of termination income from unconsolidated joint ventures (1) 709
Add:
Partners’ share of termination income from consolidated joint ventures 641 (3)
BXP’s Share of NOI (excluding termination income) $ 470,610 $ 426,232
Net Operating Income (NOI) $ 484,042 $ 453,169
Less:
Termination income 1,922 5,355
NOI from non Same Properties (excluding termination income) 17,390 7,539
Same Property NOI (excluding termination income) 464,730 440,275
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 47,221 46,290
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) — —
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 35,711 24,708
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 10,015 901
BXP’s Share of Same Property NOI (excluding termination income) $ 443,205 $ 417,792
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 25,413
Change in BXP’s Share of Same Property NOI (excluding termination income) 6.1 %
Q3 2022
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-June-22 30-June-21
Net income attributable to Boston Properties, Inc. $ 222,989 $ 111,703
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 25,708 12,383
Noncontrolling interest in property partnerships 18,546 17,164
Net income 267,243 141,250
Add:
Interest expense 104,142 106,319
Depreciation and amortization expense 183,146 183,838
Transaction costs 496 751
Payroll and related costs from management services contracts 3,239 2,655
General and administrative expense 34,665 38,405
Less:
Other income - assignment fee 6,624 —
Interest and other income (loss) 1,195 1,452
Gains (losses) from investments in securities (4,716) 2,275
Gains on sales of real estate 96,247 7,756
Loss from unconsolidated joint ventures (54) (1,373)
Direct reimbursements of payroll and related costs from management services contracts 3,239 2,655
Development and management services revenue 6,354 7,284
Net Operating Income (NOI) 484,042 453,169
Less:
Straight-line rent 21,601 31,267
Fair value lease revenue 1,919 731
Termination income 1,922 5,355
Add:
Straight-line ground rent expense adjustment 1 631 567
Lease transaction costs that qualify as rent inducements 2 4,452 826
NOI - cash (excluding termination income) 463,683 417,209
Less:
NOI - cash from non Same Properties (excluding termination income) 12,800 7,134
Same Property NOI - cash (excluding termination income) 450,883 410,075
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 46,996 43,833
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) — —
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 26,426 21,477
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 6,666 799
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 423,647 $ 386,920
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 36,727
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 9.5 %

_____________

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 $115 and $(103) for the three months ended June 30, 2022 and 2021, respectively. As of June 31, 2022, the Company has remaining lease payments aggregating approximately $25.3 million, all of which it expects to incur by the end of 2024 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2024 may vary significantly.

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

Q3 2022
Consolidated Income Statement - prior year

(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 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 2,241 402
Hotel operating 3,946 1,996
General and administrative 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 (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 (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

67

Document

Exhibit 99.2

bxp-color.gif

BXP ANNOUNCES 3RD QUARTER 2022 RESULTS; REPORTS Q3 EPS OF $2.29 AND FFO PER SHARE OF $1.91

Exceeds Guidance for EPS and FFO for Q3; Executes 1.4 Million SF of Leases in Q3; and Expands Life Sciences Portfolio in Cambridge, MA

BOSTON, MA, October 25, 2022 - BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the third quarter ended September 30, 2022.

Financial highlights for the third quarter include:

•Revenue increased 8.3% to $790.5 million for the quarter ended September 30, 2022, as compared to $730.1 million for the quarter ended September 30, 2021.

•Net income attributable to common shareholders of $361.0 million, or $2.29 per diluted share (EPS) for the quarter ended September 30, 2022, compared to $108.3 million, or $0.69 per diluted share, for the quarter ended September 30, 2021.

•Funds from Operations (FFO) of $299.8 million, or $1.91 per diluted share for the quarter ended September 30, 2022, compared to FFO of $270.5 million, or $1.73 per diluted share, for the quarter ended September 30, 2021.

•EPS and FFO per share exceeded the mid-points of BXP’s guidance by $1.54 and $0.04 per share, respectively. EPS included a gain on sale of real estate of $1.50 per share, and each of EPS and FFO included $0.04 per share of better-than-projected portfolio performance.

BXP provided guidance for (1) full year 2022 EPS of $5.55 - $5.57 and FFO of $7.51 - $7.53 per diluted share, and (2) full year 2023 EPS of $2.27 - $2.42 and FFO of $7.15 - $7.30 per diluted share. The midpoint of guidance for each of 2023 EPS and FFO per diluted share is projected to be lower than projected full year 2022 EPS and FFO per diluted share, respectively, primarily due to:

•for 2023 EPS, lower anticipated gains on sale of $2.43 per diluted share; and

•for each of 2023 EPS and FFO per diluted share, a decline of $0.30 per diluted share (at the midpoint of our 2023 guidance range) from:

◦$0.69 per diluted share of higher projected interest expense, including $0.30 per diluted share of interest expense related to our new investment activity outlined in this release,

◦$0.16 per diluted share of dilution resulting from our 2022 disposition activity, and

◦$0.07 per diluted share of reduced fee income and increased G&A expense.

The foregoing are offset by $0.62 per diluted share of projected contributions from our acquisitions in 2022 and from our 2022 and 2023 development deliveries.

–more–

See “EPS and FFO per Share Guidance” below.

Third quarter and recent business highlights include:

•Executed approximately 1.4 million square feet of leases, which was the strongest third quarter leasing volume since 2019. Notable leases include:

◦A 15-year lease for approximately 225,000 square feet with a prominent life sciences organization for the planned office-to-lab conversion at 300 Binney Street located in Cambridge, Massachusetts.

◦An 11-year lease for approximately 118,000 square feet with a retail client at the Prudential Center in Boston, Massachusetts.

•Further expanded BXP’s life sciences portfolio in Kendall Square in Cambridge, Massachusetts by completing the acquisition of 125 Broadway for a purchase price, including transaction costs, of approximately $592.4 million. 125 Broadway is a six-story, 271,000 square foot laboratory/life sciences property adjacent to BXP’s existing 2.2 million square foot portfolio in the heart of Kendall Square. Kendall Square is considered to be the largest and most important cluster of life sciences companies and research space in the United States. This property is 100% leased.

•BXP and Biogen Inc. terminated Biogen’s lease at 300 Binney Street in Kendall Square to facilitate the conversion and expansion of the property. 300 Binney Street is currently a 195,000 square foot property that will be redeveloped into an approximately 240,000 square foot laboratory/life sciences space for the new client that has signed a lease for 100% of the laboratory/life sciences space.

•Partially placed in-service 880 Winter Street, an approximately 244,000 square foot laboratory/life sciences project located in Waltham, Massachusetts. The project is currently 97% leased.

•Commenced the redevelopment of:

◦A property located at 140 Kendrick Street in Needham, Massachusetts. When completed, the property will consist of approximately 104,000 square feet and will be the first Net Zero, Carbon Neutral office repositioning of this scale in Massachusetts. The repositioning will include a deep energy retrofit, full electrification of gas-fired systems, HVAC modernization, including advanced heat recovery, and onsite renewable energy generation from a solar photovoltaic system that is designed to exceed annual consumption. This property is 100% leased.

◦760 Boylston Street at the Prudential Center located in Boston, Massachusetts. The redevelopment is a modernization of the space consisting of approximately 118,000 rentable square feet. This property is 100% leased to a single client.

•Completed the disposition of:

◦601 Massachusetts Avenue located in Washington, DC for a gross sale price of $531.0 million. Net cash proceeds totaled approximately $514.5 million resulting in

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a gain on sale of real estate totaling approximately $237.4 million. 601 Massachusetts Avenue is an 11-story, approximately 479,000 square foot premier workplace originally developed by BXP in 2013 and currently 98% leased. BXP will continue to provide property management services to the new owner.

◦Land parcels located in Loudoun County, Virginia for a gross sale price of $27.0 million. Net cash proceeds totaled approximately $26.9 million resulting in a gain on sale of real estate totaling approximately $24.4 million.

•In October 2022, entered into an agreement to acquire an approximate 27% interest in the joint venture that owns 200 Fifth Avenue, a 14-story, approximately 870,000 square-foot, LEED Gold certified, premier workplace located in Manhattan, New York that is approximately 93% leased. The acquisition of the joint venture interest will be BXP’s second investment in the vibrant Midtown South neighborhood in the past twelve months. BXP will serve as the managing member and provide customary leasing and property management services for the joint venture. BXP expects to close the acquisition in the fourth quarter of 2022 for a gross purchase price of approximately $280.2 million, which includes $120.1 million of cash and BXP’s pro rata share of the outstanding loan secured by the property of $160.1 million. The mortgage loan bears interest at 4.34% per annum and matures in November 2028. There can be no assurance that BXP will complete the acquisition on the terms currently contemplated or at all.

•In October 2022, entered into an agreement to sell the residential component of The Avant located in Reston, Virginia. The Avant is a 15-story, approximately 329,000 square foot, 359-unit, luxury multifamily building that is currently 96% occupied. BXP will retain ownership of the 26,000 square foot ground-level retail space. BXP expects to close the transaction in the fourth quarter of 2022 for a gross sale price of approximately $141 million. There can be no assurance that BXP will complete the sale on the terms currently contemplated or at all.

•BXP maintained its leadership and ongoing commitment to ESG and sustainability performance and earned a top ESG rating in the 2022 GRESB® assessment. BXP earned its 11th consecutive “Green Star” recognition and the highest GRESB 5-star rating, as well as an “A” disclosure score. BXP 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, 2022. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

BXP’s guidance for the full year 2022 and full year 2023 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in this release and those referenced during the related conference call. The estimates do not include (1) possible future gains or losses or the impact on operating results

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from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Full Year 2022 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 5.55 $ 5.57 $ 2.27 $ 2.42
Add:
Projected Company share of real estate depreciation and amortization 4.39 4.39 4.88 4.88
Projected Company share of (gains)/losses on sales of real estate (2.43) (2.43) — —
Projected FFO per share (diluted) $ 7.51 $ 7.53 $ 7.15 $ 7.30

BXP will host a conference call on Wednesday, October 26, 2022 at 10:00 AM Eastern Time, open to the general public, to discuss the third quarter 2022 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BIb368dd8ce4f440c5b320e7828f6f17f6 to receive the dial-in numbers and unique PIN to access the call. There will also be a live audio, listen-only webcast of the call, which may be accessed in the Investors section of BXP’s website at https://investors.bxp.com/events-webcasts. Shortly after the call, a replay of the call will be available on BXP’s website at https://investors.bxp.com/events-webcasts for up to twelve months following the call.

Additionally, a copy of BXP’s third quarter 2022 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT), with more than 50 years of experience developing, owning, managing, and acquiring exceptional properties in dynamic gateway markets. Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 53.5 million square feet and 193 properties, including 14 properties under construction/redevelopment. For more information about BXP, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

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This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of the COVID-19 global pandemic, including the emergence of additional variants, the effectiveness, availability and distribution of vaccines, including their efficacy against new variant strains and the willingness of individuals to be vaccinated, the impact of geopolitical conflicts, including the ongoing war in Ukraine, and the severity and duration of the indirect economic impacts of the foregoing, such as recession, supply-chain disruptions, labor market disruptions, rising inflation, dislocation and volatility in capital markets, job losses, potential longer-term changes in consumer and client behavior, as well as possible future governmental responses, risks related to volatile or adverse global economic and geopolitical conditions, health crises and dislocations in the credit markets, risks associated with downturns in the national and local economies, increasing interest rates, and volatility in the securities markets, BXP’s ability to enter into new leases or renew leases on favorable terms, dependence on clients’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as may be required by law.

Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
September 30, 2022 December 31, 2021
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 23,920,533 $ 22,298,103
Construction in progress 670,167 894,172
Land held for future development 601,676 560,355
Right of use assets - finance leases 237,505 237,507
Right of use assets - operating leases 167,935 169,778
Less: accumulated depreciation (6,170,472) (5,883,961)
Total real estate 19,427,344 18,275,954
Cash and cash equivalents 375,774 452,692
Cash held in escrows 73,112 48,466
Investments in securities 30,040 43,632
Tenant and other receivables, net 69,633 70,186
Related party note receivable, net 78,592 78,336
Note receivables, net — 9,641
Accrued rental income, net 1,250,176 1,226,745
Deferred charges, net 720,648 618,798
Prepaid expenses and other assets 107,538 57,811
Investments in unconsolidated joint ventures 1,593,834 1,482,997
Total assets $ 23,726,691 $ 22,365,258
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,271,157 $ 3,267,914
Unsecured senior notes, net 9,491,714 9,483,695
Unsecured line of credit 340,000 145,000
Unsecured term loan, net 730,000 —
Lease liabilities - finance leases 248,092 244,421
Lease liabilities - operating leases 205,008 204,561
Accounts payable and accrued expenses 360,572 320,775
Dividends and distributions payable 170,952 169,859
Accrued interest payable 91,885 94,796
Other liabilities 417,255 391,441
Total liabilities 15,326,635 14,322,462
Commitments and contingencies — —
Redeemable deferred stock units 6,985 9,568
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,833,612 and 156,623,749 issued and 156,754,712 and 156,544,849 outstanding at September 30, 2022 and December 31, 2021, respectively 1,568 1,565
Additional paid-in capital 6,532,299 6,497,730
Dividends in excess of earnings (359,536) (625,891)
Treasury common stock at cost, 78,900 shares at September 30, 2022 and December 31, 2021 (2,722) (2,722)
Accumulated other comprehensive loss (15,991) (36,662)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,155,618 5,834,020
Noncontrolling interests:
Common units of the Operating Partnership 685,952 642,655
Property partnerships 1,551,501 1,556,553
Total equity 8,393,071 8,033,228
Total liabilities and equity $ 23,726,691 $ 22,365,258

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
(in thousands, except for per share amounts)
Revenue
Lease $ 739,255 $ 692,260 $ 2,179,274 $ 2,062,102
Parking and other 28,154 23,507 80,234 58,727
Hotel revenue 11,749 5,189 28,395 7,382
Development and management services 7,465 6,094 19,650 20,181
Direct reimbursements of payroll and related costs from management services contracts 3,900 3,006 11,204 9,166
Total revenue 790,523 730,056 2,318,757 2,157,558
Expenses
Operating
Rental 281,702 258,281 825,805 764,373
Hotel 8,548 3,946 19,832 7,993
General and administrative 32,519 34,560 110,378 117,924
Payroll and related costs from management services contracts 3,900 3,006 11,204 9,166
Transaction costs 1,650 1,888 2,146 2,970
Depreciation and amortization 190,675 179,412 551,445 539,815
Total expenses 518,994 481,093 1,520,810 1,442,241
Other income (expense)
Loss from unconsolidated joint ventures (3,524) (5,597) (1,389) (1,745)
Gains on sales of real estate 262,345 348 381,293 8,104
Interest and other income (loss) 3,728 1,520 6,151 4,140
Other income - assignment fee — — 6,624 —
Gains (losses) from investments in securities (1,571) (190) (8,549) 3,744
Losses from early extinguishment of debt — — — (898)
Interest expense (111,846) (105,794) (317,216) (320,015)
Net income 420,661 139,250 864,861 408,647
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (18,801) (18,971) (54,896) (52,602)
Noncontrolling interest—common units of the Operating Partnership (40,883) (11,982) (82,821) (35,393)
Net income attributable to Boston Properties, Inc. 360,977 108,297 727,144 320,652
Preferred dividends — — — (2,560)
Preferred stock redemption charge — — — (6,412)
Net income attributable to Boston Properties, Inc. common shareholders $ 360,977 $ 108,297 $ 727,144 $ 311,680
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 2.30 $ 0.69 $ 4.63 $ 2.00
Weighted average number of common shares outstanding 156,754 156,183 156,708 156,062
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 2.29 $ 0.69 $ 4.62 $ 1.99
Weighted average number of common and common equivalent shares outstanding 157,133 156,598 157,144 156,394

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended September 30, Nine months ended September 30,
2022 2021 2022 2021
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 360,977 $ 108,297 $ 727,144 $ 311,680
Add:
Preferred stock redemption charge — — — 6,412
Preferred dividends — — — 2,560
Noncontrolling interest - common units of the Operating Partnership 40,883 11,982 82,821 35,393
Noncontrolling interests in property partnerships 18,801 18,971 54,896 52,602
Net income 420,661 139,250 864,861 408,647
Add:
Depreciation and amortization expense 190,675 179,412 551,445 539,815
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,706) (16,773) (52,773) (50,343)
Company’s share of depreciation and amortization from unconsolidated joint ventures 21,485 17,803 64,649 51,565
Corporate-related depreciation and amortization (431) (443) (1,248) (1,327)
Less:
Gains on sale of investment included within loss from unconsolidated joint ventures — — — 10,257
Gains on sales of real estate 262,345 348 381,293 8,104
Noncontrolling interests in property partnerships 18,801 18,971 54,896 52,602
Preferred dividends — — — 2,560
Preferred stock redemption charge — — — 6,412
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 333,538 299,930 990,745 868,422
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 33,787 29,453 100,164 85,366
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 299,751 $ 270,477 $ 890,581 $ 783,056
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.87 % 90.18 % 89.89 % 90.17 %
Weighted average shares outstanding - basic 156,754 156,183 156,708 156,062
FFO per share basic $ 1.91 $ 1.73 $ 5.68 $ 5.02
Weighted average shares outstanding - diluted 157,133 156,598 157,144 156,394
FFO per share diluted $ 1.91 $ 1.73 $ 5.67 $ 5.01

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

In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. 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, 2022 December 31, 2021
Boston 91.4 % 91.4 %
Los Angeles 90.0 % 88.8 %
New York 86.9 % 87.6 %
San Francisco 87.3 % 87.3 %
Seattle 89.1 % 90.9 %
Washington, DC 88.1 % 87.2 %
Total Portfolio 88.9 % 88.8 %

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

#

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