Equibles

8-K

BXP, Inc. (BXP)

8-K 2024-01-30 For: 2024-01-30
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): January 30, 2024

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On January 30, 2024, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the fourth quarter and full year ended 2023. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended December 31, 2023.
*99.2 Press release dated January 30, 2024.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: January 30, 2024

Document

Exhibit 99.1

a290300binneya.jpg

bxp-color.gif

Supplemental Operating and Financial Data

for the Quarter Ended December 31, 2023

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“BXP” or the “Company”) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by joint ventures, BXP’s portfolio totals 53.3 million square feet and 188 properties, including 10 properties under construction/redevelopment. BXP’s properties include 167 office properties, 14 retail properties (including two retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned a twelfth consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 56.

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 60.

GENERAL INFORMATION

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

(Cover photos left to right: Renderings of 290 and 300 Binney Street, Cambridge, MA)

Q4 2023
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 5
Consolidated Income Statements 6
Funds From Operations (FFO) 7
Funds Available for Distribution (FAD) 8
Net Operating Income (NOI) 9
Same Property Net Operating Income (NOI) by Reportable Segment 11
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 29
Senior Unsecured Debt Covenant Compliance Ratios 30
Net Debt to EBITDAre 31
Debt Ratios 32
JOINT VENTURES
Consolidated Joint Ventures 33
Unconsolidated Joint Ventures 35
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 38
Boston 39
Los Angeles 41
New York 43
San Francisco 45
Seattle 47
Washington, DC 49
CBD 51
Suburban 53
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 55
Definitions 56
Reconciliations 60
Consolidated Income Statement - Prior Year 68
Q4 2023
--- ---
Company profile

SNAPSHOT

(as of December 31, 2023)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 188
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 53.3 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 175.5 million
Closing Price, at the end of the quarter $70.17 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 5.6%
Consolidated Market Capitalization 2 $28.2 billion
BXP’s Share of Market Capitalization 2, 3 $28.2 billion
Unsecured Senior Debt Ratings 4 BBB+ (S&P); Baa2 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

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

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

MANAGEMENT

Board of Directors
Owen D. Thomas Chairman of the Board Owen D. Thomas Chief Executive Officer
Douglas T. Linde Douglas T. Linde President
Joel I. Klein Lead Independent Director Raymond A. Ritchey Senior Executive Vice President
Kelly A. Ayotte Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan Chair of Compensation Committee Donna D. Garesche Executive Vice President, Chief Human Resources Officer
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 Chair of Audit Committee Hilary Spann Executive Vice President, New York Region
Matthew J. Lustig Chair of Nominating & Corporate Peter V. Otteni Executive Vice President, Co-Head of the Washington, DC
Governance Committee Region
William H. Walton, III John J. Stroman Executive Vice President, Co-Head of the Washington, DC
Derek A. (Tony) West Region
Rodney C. Diehl Senior Vice President, Co-Head of the West Coast Regions
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 56.

4In January 2024, the Company’s S&P credit rating was downgraded to BBB.

Q4 2023
Guidance and assumptions

GUIDANCE

BXP’s guidance for the first quarter 2024 and full year 2024 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on January 30, 2024 and those referenced during the related conference call.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 58. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

First Quarter 2024 Full Year 2024
Low High Low High
Projected EPS (diluted) $ 0.66 $ 0.68 $ 2.26 $ 2.46
Add:
Projected Company share of real estate depreciation and amortization 1 1.20 1.20 4.88 4.88
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments (0.14) (0.14) (0.14) (0.14)
Projected FFO per share (diluted) $ 1.72 $ 1.74 $ 7.00 $ 7.20

ASSUMPTIONS

(dollars in thousands)

Full Year 2024
Low High
Operating property activity:
Average In-service portfolio occupancy 87.20 % 88.60 %
Decrease in BXP’s Share of Same Property net operating income (excluding termination income) (3.00) % (1.00) %
Decrease in BXP’s Share of Same Property net operating income - cash (excluding termination income) (3.00) % (1.00) %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 75,000 $ 82,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (6,000) $ (6,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 110,000 $ 125,000
Termination income $ 5,000 $ 8,000
Other revenue (expense):
Development, management services and other revenue $ 25,000 $ 28,000
General and administrative expense 2 $ (163,000) $ (159,000)
Consolidated net interest expense $ (590,000) $ (570,000)
Unconsolidated joint venture interest expense $ (78,000) $ (72,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (148,000) $ (138,000)

_______________

1 Excludes estimated non-real estate related amortization of $0.01 and $0.05 per share for First Quarter 2024 and Full Year 2024 respectively.

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

Q4 2023
Financial highlights

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

Three Months Ended
31-Dec-23 30-Sep-23
Net income (loss) attributable to Boston Properties, Inc. $ 119,925 $ (111,826)
Net income (loss) attributable to Boston Properties, Inc. per share - diluted $ 0.76 $ (0.71)
FFO attributable to Boston Properties, Inc. 1 $ 286,203 $ 292,822
Diluted FFO per share 1 $ 1.82 $ 1.86
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 224,423 $ 210,044
Selected items:
Revenue $ 828,933 $ 824,283
Recoveries from clients $ 130,296 $ 134,599
Service income from clients $ 2,175 $ 2,870
BXP’s Share of revenue 3 $ 811,157 $ 808,803
BXP’s Share of straight-line rent 3 $ 28,765 $ 16,647
BXP’s Share of fair value lease revenue 3, 4 $ 3,441 $ 3,907
BXP’s Share of termination income 3 $ 10,350 $ 2,935
Ground rent expense $ 3,611 $ 3,589
Capitalized interest $ 9,207 $ 9,676
Capitalized wages $ 2,588 $ 4,416
Income (loss) from unconsolidated joint ventures 5 $ 22,250 $ (247,556)
BXP’s share of FFO from unconsolidated joint ventures 6 $ 16,602 $ 14,957
Net income attributable to noncontrolling interests in property partnerships $ 19,324 $ 20,909
FFO attributable to noncontrolling interests in property partnerships 7 $ 38,608 $ 39,083
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 9,412 $ 3,196
Below-market rents (included within Other Liabilities) $ 36,533 $ 38,049
Accrued rental income liability (included within Other Liabilities) $ 103,530 $ 107,462
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8 2.90 3.00
Interest Coverage Ratio (including capitalized interest) 8 2.70 2.79
Fixed Charge Coverage Ratio 8 2.46 2.53
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 9 7.37 7.28
Change in BXP’s Share of Same Property Net Operating Income (NOI) (excluding termination income) 10 (1.5) % (0.3) %
Change in BXP’s Share of Same Property NOI (excluding termination income) - cash 10 (1.0) % 1.7 %
FAD Payout Ratio 2 76.68 % 81.94 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 62.3 % 62.4 %
Occupancy % of In-Service Properties 11 88.4 % 88.8 %
Leased % of In-Service Properties 12 89.9 % 90.4 %
Capitalization:
Consolidated Debt $ 15,856,297 $ 14,961,715
BXP’s Share of Debt 13 $ 15,917,577 $ 15,120,033
Consolidated Market Capitalization $ 28,172,185 $ 25,401,704
Consolidated Debt/Consolidated Market Capitalization 56.28 % 58.90 %
BXP’s Share of Market Capitalization 13 $ 28,233,465 $ 25,560,022
BXP’s Share of Debt/BXP’s Share of Market Capitalization 13 56.38 % 59.16 %

_____________

1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. and Diluted FFO per share, see page 7.

2For a quantitative reconciliation of FAD, see page 8. 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 56.

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 the three months ended December 31, 2023, includes an approximately $29.9 million gain on the consolidation of Santa Monica Business Park, see page 37. For the three months ended September 30, 2023, includes an impairment charge totaling approximately $272.6 million related to the Company’s investment in four unconsolidated joint ventures, partially offset by a gain of approximately $35.8 million related to the Company’s investment in Metropolitan Square.

6For a quantitative reconciliation for the three months ended December 31, 2023, see page 37.

7For a quantitative reconciliation for the three months ended December 31, 2023, see page 34.

Q4 2023
Financial highlights (continued)

8For a quantitative reconciliation for the three months ended December 31, 2023 and September 30, 2023, see page 32.

9For a quantitative reconciliation for the three months ended December 31, 2023 and September 30, 2023, see page 31.

10For a quantitative reconciliation for the three months ended December 31, 2023 and September 30, 2023, see pages 11, 66 and 67.

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

12Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. Excludes hotel and residential properties.

13For a quantitative reconciliation for December 31, 2023, see page 27.

Q4 2023
Consolidated Balance Sheets

(unaudited and in thousands)

31-Dec-23 30-Sep-23
ASSETS
Real estate $ 25,504,868 $ 24,809,369
Construction in progress 547,280 551,330
Land held for future development 697,061 670,691
Right of use assets - finance leases 1 401,680 237,532
Right of use assets - operating leases 324,298 322,790
Less accumulated depreciation (6,881,728) (6,723,616)
Total real estate 20,593,459 19,868,096
Cash and cash equivalents 1,531,477 882,647
Cash held in escrows 81,090 47,741
Investments in securities 36,337 32,809
Tenant and other receivables, net 122,407 123,138
Note receivable, net 1,714 —
Related party note receivable, net 88,779 88,807
Sales-type lease receivable, net 13,704 13,475
Accrued rental income, net 1,355,212 1,331,796
Deferred charges, net 760,421 692,386
Prepaid expenses and other assets 64,230 121,431
Investments in unconsolidated joint ventures 1,377,319 1,536,822
Total assets $ 26,026,149 $ 24,739,148
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 4,166,379 $ 3,275,974
Unsecured senior notes, net 10,491,617 10,488,568
Unsecured line of credit — —
Unsecured term loan, net 1,198,301 1,197,173
Lease liabilities - finance leases 1 417,961 253,178
Lease liabilities - operating leases 350,391 341,299
Accounts payable and accrued expenses 458,329 462,240
Dividends and distributions payable 171,176 171,916
Accrued interest payable 133,684 128,422
Other liabilities 1 445,947 380,014
Total liabilities 17,833,785 16,698,784
Commitments and contingencies — —
Redeemable deferred stock units 8,383 6,788
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, 157,019,766 and 157,018,080 issued and 156,940,866 and 156,939,180 outstanding at December 31, 2023 and September 30, 2023, respectively 1,569 1,569
Additional paid-in capital 6,715,149 6,568,645
Dividends in excess of earnings (816,152) (782,275)
Treasury common stock at cost, 78,900 shares at December 31, 2023 and September 30, 2023 (2,722) (2,722)
Accumulated other comprehensive income (loss) (21,147) 2,866
Total stockholders’ equity attributable to Boston Properties, Inc. 5,876,697 5,788,083
Noncontrolling interests:
Common units of the Operating Partnership 666,580 656,587
Property partnerships 1,640,704 1,588,906
Total equity 8,183,981 8,033,576
Total liabilities and equity $ 26,026,149 $ 24,739,148

____________

1On December 14, 2023, the Company acquired and consolidated it’s partner’s 45% interest in Santa Monica Business Park and consolidated the Company's investment in the asset. As a result, the Company recorded approximately $164.1 million and $163.1 million of Right of Use Assets – Finance Leases and Lease Liabilities – Finance Leases, respectively, related to the ground lease at Santa Monica Business Park. In accordance with Accounting Standards Codification 805 “Business Combinations”, the Company was required to fair value the ground lease. The fair value adjustment of approximately $46.1 million has been recorded within “Other Liabilities”. For additional details, see page 13.

Q4 2023
Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Dec-23 30-Sep-23
Revenue
Lease $ 768,884 $ 767,181
Parking and other 30,676 29,649
Insurance proceeds 821 779
Hotel revenue 11,803 13,484
Development and management services 12,728 9,284
Direct reimbursements of payroll and related costs from management services contracts 4,021 3,906
Total revenue 828,933 824,283
Expenses
Operating 160,360 159,304
Real estate taxes 140,477 140,368
Restoration expenses related to insurance claims 574 520
Hotel operating 8,373 9,020
General and administrative 1 38,771 31,410
Payroll and related costs from management services contracts 4,021 3,906
Transaction costs 2,343 751
Depreciation and amortization 212,067 207,435
Total expenses 566,986 552,714
Other income (expense)
Income (loss) from unconsolidated joint ventures 2 22,250 (247,556)
Gains on sales of real estate — 517
Gains (losses) from investments in securities 1 3,245 (925)
Losses from interest rate contracts (79) —
Unrealized loss on non-real estate investment (93) (51)
Interest and other income (loss) 20,965 20,715
Interest expense (155,080) (147,812)
Net income (loss) 153,155 (103,543)
Net (income) loss attributable to noncontrolling interests
Noncontrolling interest in property partnerships (19,324) (20,909)
Noncontrolling interest - common units of the Operating Partnership 3 (13,906) 12,626
Net income (loss) attributable to Boston Properties, Inc. $ 119,925 $ (111,826)
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income (loss) attributable to Boston Properties, Inc. per share - basic $ 0.76 $ (0.71)
Net income (loss) attributable to Boston Properties, Inc. per share - diluted $ 0.76 $ (0.71)

_____________

1Includes $3.2 million and $(0.9) million for the three months ended December 31, 2023 and September 30, 2023, respectively, related to the Company’s deferred compensation plan.

2For the three months ended December 31, 2023, includes an approximately $29.9 million gain on the consolidation of Santa Monica Business Park, see page 37. For the three months ended September 30, 2023, includes an impairment charge totaling approximately $272.6 million related to the Company’s investment in four unconsolidated joint ventures, partially offset by a gain of approximately $35.8 million related to the Company’s investment in Metropolitan Square.

3For additional detail, see page 7.

Q4 2023
Funds from operations (FFO) 1

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

Three Months Ended
31-Dec-23 30-Sep-23
Net income (loss) attributable to Boston Properties, Inc. $ 119,925 $ (111,826)
Add:
Noncontrolling interest - common units of the Operating Partnership 13,906 (12,626)
Noncontrolling interests in property partnerships 19,324 20,909
Net income (loss) 153,155 (103,543)
Add:
Depreciation and amortization expense 212,067 207,435
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (19,284) (18,174)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 24,132 25,666
Corporate-related depreciation and amortization (453) (446)
Non-real estate related amortization (1,681) —
Impairment losses included within income (loss) from unconsolidated joint ventures — 272,603
Less:
Gains on sales of real estate — 517
Gain on investment included within income (loss) from unconsolidated joint ventures — 35,756
Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures 3 28,412 —
Gain on sales-type lease included within income (loss) from unconsolidated joint ventures 3 1,368 —
Unrealized loss on non-real estate investment (93) (51)
Noncontrolling interests in property partnerships 19,324 20,909
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 318,925 326,410
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 32,722 33,588
FFO attributable to Boston Properties, Inc. $ 286,203 $ 292,822
Boston Properties, Inc.’s percentage share of Basic FFO 89.74 % 89.71 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.26 % 10.29 %
Basic FFO per share $ 1.82 $ 1.87
Weighted average shares outstanding - basic 156,945 156,880
Diluted FFO per share $ 1.82 $ 1.86
Weighted average shares outstanding - diluted 157,276 157,269

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Dec-23 30-Sep-23
Basic FFO $ 318,925 $ 326,410
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 318,925 326,410
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 32,658 33,522
Boston Properties, Inc.’s share of Diluted FFO $ 286,267 $ 292,888

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Dec-23 30-Sep-23
Shares/units for Basic FFO 174,894 174,882
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 331 389
Shares/units for Diluted FFO 175,225 175,271
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,949 18,002
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,276 157,269
Boston Properties, Inc.’s percentage share of Diluted FFO 89.76 % 89.73 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2023, see page 34.

3For a quantitative reconciliation for the three months ended December 31, 2023, see page 37.

Q4 2023
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Dec-23 30-Sep-23
Net income (loss) attributable to Boston Properties, Inc. $ 119,925 $ (111,826)
Add:
Noncontrolling interest - common units of the Operating Partnership 13,906 (12,626)
Noncontrolling interests in property partnerships 19,324 20,909
Net income (loss) 153,155 (103,543)
Add:
Depreciation and amortization expense 212,067 207,435
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (19,284) (18,174)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 24,132 25,666
Corporate-related depreciation and amortization (453) (446)
Non-real estate related amortization (1,681) —
Impairment losses included within loss from unconsolidated joint ventures — 272,603
Less:
Gains on sales of real estate — 517
Gain on investment included within loss from unconsolidated joint ventures — 35,756
Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures 3 28,412 —
Gain on sales-type lease included within income (loss) from unconsolidated joint ventures 3 1,368 —
Unrealized loss on non-real estate investment (93) (51)
Noncontrolling interests in property partnerships 19,324 20,909
Basic FFO 318,925 326,410
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 1,314 (5,963)
BXP’s Share of hedge amortization, net of costs 1 2,030 (473)
BXP’s share of fair value interest adjustment 1 639 499
BXP’s Share of straight-line ground rent expense adjustment 1, 5 174 854
Stock-based compensation 4,469 4,843
Non-real estate depreciation and amortization 2,134 446
Unearned portion of capitalized fees from consolidated joint ventures 6 561 1,283
Less:
BXP’s Share of straight-line rent 1 28,765 16,647
BXP’s Share of fair value lease revenue 1, 7 3,441 3,907
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 53,709 79,932
BXP’s Share of maintenance capital expenditures 1, 8 16,165 16,995
BXP’s Share of amortization and accretion related to sales type lease 1 256 233
Hotel improvements, equipment upgrades and replacements 358 141
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 224,423 $ 210,044
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 172,095 $ 172,101
FAD Payout Ratio1 (B÷A) 76.68 % 81.94 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation for the three months ended December 31, 2023, see page 34.

3 For additional information for the three months ended December 31, 2023, see page 37.

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

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2025 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 3.

6See page 62 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.

Q4 2023
Reconciliation of net income (loss) attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
31-Dec-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 119,925 $ 121,790
Net income attributable to noncontrolling interests
Noncontrolling interest - common units of the Operating Partnership 13,906 13,972
Noncontrolling interest in property partnerships 19,324 19,961
Net income 153,155 155,723
Add:
Interest expense 155,080 119,923
Unrealized loss on non-real estate investment 93 150
Losses from interest rate contracts 79 —
Depreciation and amortization expense 212,067 198,330
Transaction costs 2,343 759
Payroll and related costs from management services contracts 4,021 4,246
General and administrative expense 38,771 36,000
Less:
Interest and other income (loss) 20,965 5,789
Gains from investments in securities 3,245 2,096
Gain on sales-type lease — 10,058
Gains on sales of real estate — 55,726
Income (loss) from unconsolidated joint ventures 22,250 (58,451)
Direct reimbursements of payroll and related costs from management services contracts 4,021 4,246
Development and management services revenue 12,728 8,406
Net Operating Income (NOI) 502,400 487,261
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 38,520 37,734
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 49,263 48,589
BXP’s Share of NOI 491,657 476,406
Less:
Termination income 10,485 1,723
BXP’s share of termination income from unconsolidated joint ventures 1 — 803
Add:
Partners’ share of termination income from consolidated joint ventures 2 135 206
BXP’s Share of NOI (excluding termination income) $ 481,307 $ 474,086
Net Operating Income (NOI) $ 502,400 $ 487,261
Less:
Termination income 10,485 1,723
NOI from non Same Properties (excluding termination income) 3 23,045 9,117
Same Property NOI (excluding termination income) 468,870 476,421
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 49,128 48,383
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 38,520 36,931
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 10,005 9,667
BXP’s Share of Same Property NOI (excluding termination income) $ 448,257 $ 455,302

_____________

1For a quantitative reconciliation for the three months ended December 31, 2023, see page 65.

2For a quantitative reconciliation for the three months ended December 31, 2023, see pages 62-63.

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 December 31, 2023 and therefore are no longer a part of the Company’s property portfolio.

Q4 2023
Reconciliation of net income (loss) attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
31-Dec-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 119,925 $ 121,790
Net loss attributable to noncontrolling interests
Noncontrolling interest - common units of the Operating Partnership 13,906 13,972
Noncontrolling interest in property partnerships 19,324 19,961
Net income 153,155 155,723
Add:
Interest expense 155,080 119,923
Unrealized loss on non-real estate investment 93 150
Losses from interest rate contracts 79 —
Depreciation and amortization expense 212,067 198,330
Transaction costs 2,343 759
Payroll and related costs from management services contracts 4,021 4,246
General and administrative expense 38,771 36,000
Less:
Interest and other income (loss) 20,965 5,789
Gains from investments in securities 3,245 2,096
Gain on sales-type lease — 10,058
Gains on sales of real estate — 55,726
Income (loss) from unconsolidated joint ventures 22,250 (58,451)
Direct reimbursements of payroll and related costs from management services contracts 4,021 4,246
Development and management services revenue 12,728 8,406
Net Operating Income (NOI) 502,400 487,261
Less:
Straight-line rent 29,235 32,038
Fair value lease revenue 2,518 3,088
Amortization and accretion related to sales type lease 238 —
Termination income 10,485 1,723
Add:
Straight-line ground rent expense adjustment 1 578 631
Lease transaction costs that qualify as rent inducements 2 1,276 11,212
NOI - cash (excluding termination income) 461,778 462,255
Less:
NOI - cash from non Same Properties (excluding termination income) 3 13,308 8,649
Same Property NOI - cash (excluding termination income) 448,470 453,606
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4 44,606 43,709
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 33,704 33,154
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 7,368 8,657
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 430,200 $ 434,394

_____________

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 $(543) and $(369) for the three months ended December 31, 2023 and 2022, respectively. As of December 31, 2023, the Company has remaining lease payments aggregating approximately $24.3 million, all of which it expects to incur by the end of 2025 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2025 may vary significantly.

2Consist of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 8.

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 December 31, 2023 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended December 31, 2023, see page 63.

5For a quantitative reconciliation for the three months ended December 31, 2023, see page 65.

Q4 2023
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Dec-23 31-Dec-22 Change Change 31-Dec-23 31-Dec-22 Change Change
Rental Revenue 2 $ 753,990 $ 737,064 $ 23,627 $ 22,569
Less: Termination income 10,485 1,723 — —
Rental revenue (excluding termination income) 2 743,505 735,341 1.1 % 23,627 22,569 4.7 %
Less: Operating expenses and real estate taxes 283,623 268,178 15,445 5.8 % 14,639 13,311 1,328 10.0 %
NOI (excluding termination income) 2, 3 $ 459,882 $ 467,163 (1.6) % $ 8,988 $ 9,258 (2.9) %
Rental revenue (excluding termination income) 2 $ 743,505 $ 735,341 1.1 % $ 23,627 $ 22,569 4.7 %
Less: Straight-line rent and fair value lease revenue 22,046 34,512 (12,466) (36.1) % 148 22 126 572.7 %
Add: Lease transaction costs that qualify as rent inducements 4 1,216 11,088 (9,872) (89.0) % — — — — %
Subtotal 722,675 711,917 10,758 1.5 % 23,479 22,547 932 4.1 %
Less: Operating expenses and real estate taxes 283,623 268,178 15,445 5.8 % 14,639 13,311 1,328 10.0 %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 439,630 $ 444,370 (1.1) % $ 8,840 $ 9,236 (4.3) %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
31-Dec-23 31-Dec-22 Change Change 31-Dec-23 31-Dec-22 Change Change
Rental Revenue 2 $ 777,617 $ 759,633 $ 47,080 $ 46,282
Less: Termination income 10,485 1,723 — 802
Rental revenue (excluding termination income) 2 767,132 757,910 1.2 % 47,080 45,480 3.5 %
Less: Operating expenses and real estate taxes 298,262 281,489 16,773 6.0 % 18,565 18,216 349 1.9 %
NOI (excluding termination income) 2, 3 $ 468,870 $ 476,421 (1.6) % $ 28,515 $ 27,264 4.6 %
Rental revenue (excluding termination income) 2 $ 767,132 $ 757,910 1.2 % $ 47,080 $ 45,480 3.5 %
Less: Straight-line rent and fair value lease revenue 22,194 34,534 (12,340) (35.7) % 2,193 2,741 (548) (20.0) %
Add: Lease transaction costs that qualify as rent inducements 4 1,216 11,088 (9,872) (89.0) % (125) (168) 43 25.6 %
Subtotal 746,154 734,464 11,690 1.6 % 44,762 42,571 2,191 5.1 %
Less: Operating expenses and real estate taxes 298,262 281,489 16,773 6.0 % 18,565 18,216 349 1.9 %
Add: Straight-line ground rent expense 5 578 631 (53) (8.4) % 139 142 (3) (2.1) %
NOI - cash (excluding termination income) 2, 3 $ 448,470 $ 453,606 (1.1) % $ 26,336 $ 24,497 7.5 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 2, 6
Three Months Ended % Three Months Ended %
31-Dec-23 31-Dec-22 Change Change 31-Dec-23 31-Dec-22 Change Change
Rental Revenue 2 $ 81,441 $ 78,912 $ 743,256 $ 727,003
Less: Termination income 135 206 10,350 2,319
Rental revenue (excluding termination income) 2 81,306 78,706 3.3 % 732,906 724,684 1.1 %
Less: Operating expenses and real estate taxes 32,178 30,323 1,855 6.1 % 284,649 269,382 15,267 5.7 %
NOI (excluding termination income) 2, 3 $ 49,128 $ 48,383 1.5 % $ 448,257 $ 455,302 (1.5) %
Rental revenue (excluding termination income) 2 $ 81,306 $ 78,706 3.3 % $ 732,906 $ 724,684 1.1 %
Less: Straight-line rent and fair value lease revenue 4,686 4,775 (89) (1.9) % 19,701 32,500 (12,799) (39.4) %
Add: Lease transaction costs that qualify as rent inducements 4 164 101 63 62.4 % 927 10,819 (9,892) (91.4) %
Subtotal 76,784 74,032 2,752 3.7 % 714,132 703,003 11,129 1.6 %
Less: Operating expenses and real estate taxes 32,178 30,323 1,855 6.1 % 284,649 269,382 15,267 5.7 %
Add: Straight-line ground rent expense 5 — — — — % 717 773 (56) (7.2) %
NOI - cash (excluding termination income) 2, 3 $ 44,606 $ 43,709 2.1 % $ 430,200 $ 434,394 (1.0) %

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 56.

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 9-10.

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 8.

5Excludes the straight-line impact of approximately $(543) and $(369) for the three months ended December 31, 2023 and 2022, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station.

6BXP’s Share equals (A) + (B) - (C).

Q4 2023
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Dec-23 30-Sep-23
Maintenance capital expenditures $ 18,302 $ 19,599
Planned capital expenditures associated with acquisition properties 73 32
Repositioning capital expenditures 10,919 10,575
Hotel improvements, equipment upgrades and replacements 358 141
Subtotal 29,652 30,347
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 781 91
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,237 2,908
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 2,918 2,695
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 1,627 622
BXP’s Share of Capital Expenditures 1 $ 27,125 $ 30,029

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Dec-23 30-Sep-23
Square feet 823,176 1,184,449
Tenant improvements and lease commissions PSF $ 83.39 $ 89.81

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2Includes 100% of unconsolidated joint ventures.

Q4 2023
Acquisitions and dispositions

For the period from January 1, 2023 through December 31, 2023

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
13100 and 13150 Worldgate Drive (50% ownership) 1 Herndon, VA January 31, 2023 N/A $ 17,000 $ — $ 17,000 N/A
Santa Monica Business Park (45% ownership) 2 West Los Angeles CA December 14, 2023 1,182,605 38,000 — 38,000 84.1 %
360 Park Avenue South (29% ownership) 3 New York, NY December 14, 2023 450,000 (25,436) 70,820 45,384 N/A
Total Acquisitions 1,632,605 $ 29,564 70,820 $ 100,384 84.1 %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain (Loss) 4
Metropolitan Square (20% ownership) 5 Washington, DC October 2, 2023 654,000 N/A N/A $ (1,491)
300 Binney Street (45% ownership) 6 Cambridge, MA November 13, 2023 236,000 $ 473,114 $ 212,900 N/A
Total Dispositions 890,000 $ 473,114 $ 212,900 $ (1,491)

___________________

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

2The Company acquired its joint venture partner’s 45% ownership interest in Santa Monica Business Park located in Santa Monica, California. The Company also assumed the partner’s share of the outstanding $300.0 million mortgage debt. Subsequent to closing, the Company extended the 467,000 square foot lease with anchor client, Snap Inc., through 2036. Santa Monica Business Park is a 47-acre office park consisting of 21 buildings. Approximately 70% of the square footage is subject to a ground lease with approximately 75 years remaining, inclusive of renewal periods, subject to certain conditions.

3The Company acquired of one of its joint venture partner’s approximately 29% ownership interest in 360 Park Avenue South increasing the Company’s ownership interest in the asset to approximately 71%. The Company also assumed the partner’s share of the joint venture’s cash and working capital aggregating approximately $25 million, as well as the partner’s share of the outstanding $220.0 million mortgage debt. 360 Park Avenue South is currently under re-development.

4Excludes approximately $0.5 million of gains on sales of real estate recognized during the year ended December 31, 2023 related to gain amounts from sales of real estate occurring in prior periods.

5A joint venture in which the Company owned a 20% equity interest (with an institutional investor owning the remaining 80%) completed a restructuring of the ownership in Metropolitan Square, which resulted in (i) an affiliate of the existing mezzanine lender purchasing the property, and (ii) the Company becoming a co-lender of up to $20.0 million under a new $100.0 million mezzanine loan. Upon the sale of the property, the Company recognized a loss related to transaction costs. This loss was recorded within income (loss) from unconsolidated joint ventures in the Company’s Operating Statement.

6The Company entered into agreements to sell a 45% interest in both 290 Binney Street and 300 Binney Street, two life sciences development projects located in Kendall Square in Cambridge, Massachusetts, to Norges Bank Investment Management (“NBIM”). The properties total approximately 810,000 square feet and each is 100% pre-leased. The Company will retain a 55% ownership interest in each joint venture and will provide development, property management, and leasing services for the ventures. NBIM funded approximately $212.9 million at closing for its investment in 300 Binney Street. 300 Binney is currently under redevelopment and the above gross sales price includes all cash and deemed contributions by the partners. The Company will fund all remaining costs for 300 Binney Street. Refer to page 14. 300 Binney did not qualify as a sale of real estate for financial reporting purposes as the Company continues to effectively control the property and thus will continue to account for the property on a consolidated basis in its financial statements. The 290 Binney Street joint venture has not closed.

Q4 2023
Construction in progress

as of December 31, 2023

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 12/31/2023 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
360 Park Avenue South (71% ownership) 6 Q3 2024 Q4 2025 New York, NY 450,000 $ 325,070 $ 418,300 $ 156,470 $ 156,470 $ 93,230 18 % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 39,201 61,000 — — 21,799 — % — % N/A
Total Office Properties under Construction 540,000 364,271 479,300 156,470 156,470 115,029 15 % — % —
Lab/Life Sciences
103 CityPoint Q4 2024 Q3 2025 Waltham, MA 113,000 88,084 115,100 — — 27,016 — % 4 % $ (70)
180 CityPoint Q4 2023 Q3 2025 Waltham, MA 329,000 217,911 290,500 — — 72,589 43 % 46 % 1,177
300 Binney Street (Redevelopment) (55% ownership) 7 Q1 2025 Q1 2025 Cambridge, MA 236,000 (24,497) 112,915 — — 137,412 100 % — % N/A
651 Gateway (50% ownership) Q1 2024 Q4 2025 South San Francisco, CA 327,000 107,582 167,100 — — 59,518 21 % — % N/A
290 Binney Street 8 Q2 2026 Q2 2026 Cambridge, MA 566,000 265,462 1,116,300 — — 850,838 100 % — % N/A
Total Lab/Life Sciences Properties under Construction 1,571,000 654,542 1,801,915 — — 1,147,373 64 % 10 % 1,107
Residential
Skymark - Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 33,081 47,700 28,000 14,734 1,353 — % — % N/A
Total Residential Property under Construction 417,000 33,081 47,700 28,000 14,734 1,353 — % — % N/A
Retail
760 Boylston Street (Redevelopment) Q2 2024 Q2 2024 Boston, MA 118,000 31,490 43,800 — — 12,310 100 % — % N/A
Reston Next Retail Q2 2025 Q4 2025 Reston, VA 33,000 22,366 26,600 — — 4,234 — % — % N/A
Total Retail Properties under Construction 151,000 53,856 70,400 — — 16,544 78 % — N/A
Total Properties Under Construction 2,679,000 $ 1,105,750 $ 2,399,315 $ 184,470 $ 171,204 $ 1,280,299 53 % 9 6 % $ 1,107

PROJECTS FULLY PLACED IN-SERVICE DURING 2023

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 12/31/2023 Estimated Future Equity Requirement 2 Net Operating Income 5 (BXP’s share)
Initial Occupancy Stabilization Date Investment to Date 2 Total Financing Percentage Leased 3
Location Square Feet
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 475,849 $ 381,132 $ 394,900 $ — $ — $ 13,768 95 % $ 3,198
View Boston observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 63,000 180,819 182,300 — — 1,481 N/A N/A 10
140 Kendrick - Building A (Redevelopment) Q3 2023 Q3 2023 Needham, MA 104,166 21,159 21,900 — — 741 100 % 1,435
751 Gateway (49% ownership) Q3 2023 Q3 2023 South San Francisco, CA 230,592 117,827 127,600 — — 9,773 100 % 2,142
Total Projects Fully Placed In-Service 873,607 $ 700,937 $ 726,700 $ — $ — $ 25,763 97 % 11 $ 6,775
Q4 2023
--- ---
Construction in progress (continued)

________________

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

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

3Represents percentage leased as of January 26, 2024, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2023. For partially owned properties, amount represents BXP’s share based on its ownership percentage. See the Definitions and Reconciliations sections of this supplemental package starting on page 56.

6On December 14, 2023, the Company acquired an additional 29% ownership interest in the property, which has increased its total ownership to 71%. Investment to Date excludes approximately $54 million of an impairment charge.

7On November 13, 2023, the Company entered into a Joint Venture with Norges Bank Investment Management (NBIM). NBIM funded approximately $212.9 million at closing for its investment in 300 Binney Street. The Company withdrew approximately $212.9 million at closing and will fund all future costs of the project.

8Upon closing of its investments in 290 Binney Street, NBIM’s investment will reduce the Company’s share of estimated future equity requirements by approximately $533.5 million.

9Total percentage leased excludes Residential.

10Result of operations from the View Boston observatory is included within the result of operations from 800 Boylston Street - The Prudential Center.

11Total percentage leased excludes View Boston observatory at The Prudential Center.

Q4 2023
Land parcels and purchase options

as of December 31, 2023

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2,229,000
San Jose, CA 2 2,830,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,723,000
San Jose, CA (55% ownership) 1,088,000
New York, NY (55% ownership) 895,000
San Francisco, CA 850,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% ownership) 451,000
Springfield, VA 422,000
Lexington, MA 420,000
Waltham, MA 365,000
Herndon, VA (50% ownership) 350,000
Rockville, MD 2 356,000
El Segundo, CA (50% ownership) 275,000
Dulles, VA 150,000
Total 15,556,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

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

__________________

1Represents 100% of consolidated and unconsolidated projects.

2Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on pages 21-24.

3The Company expects to be a 50% partner in the future development of these sites.

Q4 2023
Leasing activity

for the three months ended December 31, 2023

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,488,950
Less:
Property dispositions/properties taken out of service 1 22,673
Add:
Properties placed (and partially placed) in-service 2 152,317
Leases expiring or terminated during the period 1,253,660
Total space available for lease 6,872,254
1st generation leases 353,071
2nd generation leases with new clients 486,471
2nd generation lease renewals 336,705
Total space leased 1,176,247
Vacant space available for lease at the end of the period 5,696,007
Net (increase)/decrease in available space (207,057)
Second generation leasing information: 3
Leases commencing during the period (SF) 823,176
Weighted average lease term (months) 100
Weighted average free rent period (days) 171
Total transaction costs per square foot 4 83.39
Increase (decrease) in gross rents 5 0.12
Increase (decrease) in net rents 6 0.13

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, 7 net 6, 7
Boston 145,181 247,381 392,562 19.27 % 30.44 % 153,436
Los Angeles — 3,739 3,739 — % — % 467,539
New York 1,794 141,188 142,982 (7.45) % (15.40) % 567,279
San Francisco — 170,598 170,598 (2.44) % (3.45) % 198,686
Seattle — 122,817 122,817 (9.52) % (13.10) % —
Washington, DC 206,096 137,453 343,549 (9.15) % (13.40) % 140,662
Total / Weighted Average 353,071 823,176 1,176,247 0.12 % 0.13 % 1,527,602

_____________

1Total square feet of property taken out of service in Q4 2023 consists of 22,673 at 2092 Gaither Road.

2 Total square feet of properties placed in service in Q4 2023 consists of 142,147 at 180 CityPoint and 10,170 at RTC Next-Tower B.

3Second generation leases are defined as leases for space that has previously been leased. Of the 823,176 square feet of second generation leases that commenced in Q4 2023, leases for 728,242 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 593,811 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 593,811 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 108,138.

Q4 2023
Portfolio overview

for the three months ended December 31, 2023

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 14,640,071 1,049,688 550,114 330,000 16,569,873
Los Angeles 2,187,739 126,377 — — 2,314,116
New York 12,109,995 486,712 — — 12,596,707
San Francisco 7,230,391 354,225 318,171 — 7,902,787
Seattle 1,508,292 26,472 — — 1,534,764
Washington, DC 8,564,622 662,679 493,241 — 9,720,542
Total 46,241,110 2,706,153 1,361,526 330,000 50,638,789
% of Total 91.32 % 5.34 % 2.69 % 0.65 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 729,738 $ 59,570 $ 11,173 $ 11,703 $ 812,184
Less:
Partners’ share from consolidated joint ventures 4 71,879 9,562 — — 81,441
Add:
BXP’s share from unconsolidated joint ventures 5 57,851 2,928 2,756 — 63,535
BXP’s Share of Rental revenue 1 $ 715,710 $ 52,936 $ 13,929 $ 11,703 $ 794,278
% of Total 90.12 % 6.66 % 1.75 % 1.47 % 100.00 %

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

CBD Suburban Total
Boston 30.85 % 6.69 % 37.54 %
Los Angeles 2.65 % — % 2.65 %
New York 24.15 % 2.14 % 26.29 %
San Francisco 15.73 % 2.45 % 18.18 %
Seattle 1.78 % — % 1.78 %
Washington, DC 3.29 % 10.27 % 13.56 %
Total 78.45 % 21.55 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

4See page 63 for additional information.

5See page 65 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 9.

Q4 2023
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
31-Dec-23 30-Sep-23 31-Dec-23 30-Sep-23
Rental Revenue 2 $ 11,824 $ 11,789 $ 11,803 $ 13,484
Less: Operating expenses and real estate taxes 6,266 5,738 8,373 9,020
Net Operating Income (NOI) 2 5,558 6,051 3,430 4,464
Add: BXP’s share of NOI from unconsolidated joint ventures 1,755 1,715 N/A N/A
BXP’s Share of NOI 2 $ 7,313 $ 7,766 $ 3,430 $ 4,464
Rental Revenue 2 $ 11,824 $ 11,789 $ 11,803 $ 13,484
Less: Straight line rent and fair value lease revenue 150 70 (2) (2)
Add: Lease transaction costs that qualify as rent inducements — — — —
Subtotal 11,674 11,719 11,805 13,486
Less: Operating expenses and real estate taxes 6,266 5,738 8,373 9,020
NOI - cash basis 2 5,408 5,981 3,432 4,466
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,755 1,715 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 7,163 $ 7,696 $ 3,432 $ 4,466

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-23 31-Dec-22
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 4,331 $ 4,182 3.56 %
Average Rental Rate Per Occupied Square Foot $ 5.94 $ 5.76 3.13 %
Average Physical Occupancy 94.92 % 94.39 % 0.56 %
Average Economic Occupancy 94.82 % 93.93 % 0.95 %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 3,125 $ 2,964 5.43 %
Average Rental Rate Per Occupied Square Foot $ 5.74 $ 5.47 4.94 %
Average Physical Occupancy 95.60 % 95.24 % 0.38 %
Average Economic Occupancy 94.91 % 94.39 % 0.55 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,400 $ 4,381 0.43 %
Average Rental Rate Per Occupied Square Foot $ 4.85 $ 4.85 — %
Average Physical Occupancy 93.80 % 97.67 % (3.96) %
Average Economic Occupancy 93.87 % 97.54 % (3.76) %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 70.80 % 68.20 % 3.81 %
Average Daily Rate $ 326.03 $ 316.40 3.04 %
Revenue Per Available Room $ 285.45 $ 273.13 4.51 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 3 402
Average Monthly Rental Rate $ 3,519 $ 3,432 2.53 %
Average Rental Rate Per Occupied Square Foot $ 4.44 $ 4.35 2.07 %
Average Physical Occupancy 87.56 % 90.96 % (3.74) %
Average Economic Occupancy 85.93 % 88.76 % (3.19) %
Q4 2023
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Dec-23 31-Dec-22
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,697 $ 2,679 0.67 %
Average Rental Rate Per Occupied Square Foot $ 2.78 $ 2.76 0.72 %
Average Physical Occupancy 95.54 % 93.90 % 1.75 %
Average Economic Occupancy 95.37 % 93.65 % 1.84 %
Total In-Service Residential Units 1,716

_____________

1Includes retail space.

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

3Excludes retail space.

Q4 2023
In-service property listing as of December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,734,949 96.8 % 97.9 % 80.91
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,275,253 91.2 % 92.9 % 72.45
100 Federal Street (55% ownership) CBD Boston MA 1 1,233,537 90.6 % 90.9 % 75.83
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,446 100.0 % 100.0 % 75.90
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 790,165 99.8 % 99.8 % 88.02
100 Causeway Street (50% ownership) 4 CBD Boston MA 1 634,535 94.5 % 94.5 % 74.46
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 98.7 % 99.8 % 60.03
Prudential Center (retail shops) 5 CBD Boston MA — 485,211 95.5 % 95.5 % 97.19
The Hub on Causeway - Podium (50% ownership) 4 CBD Boston MA 1 382,988 93.8 % 94.6 % 64.39
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 100.0 % 81.94
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 100.0 % 60.28
Subtotal 10 8,324,116 95.5 % 96.1 % $ 77.48
145 Broadway East Cambridge MA 1 490,086 99.6 % 99.6 % $ 91.01
325 Main Street East Cambridge MA 1 414,565 91.4 % 91.4 % 110.87
125 Broadway East Cambridge MA 1 271,000 100.0 % 100.0 % 142.12
355 Main Street East Cambridge MA 1 259,640 99.3 % 99.3 % 81.72
90 Broadway East Cambridge MA 1 223,771 98.1 % 98.1 % 77.69
255 Main Street East Cambridge MA 1 215,394 87.9 % 87.9 % 105.27
150 Broadway East Cambridge MA 1 177,226 100.0 % 100.0 % 87.86
105 Broadway East Cambridge MA 1 152,664 100.0 % 100.0 % 74.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 100.0 % 50.70
University Place Mid-Cambridge MA 1 195,282 100.0 % 100.0 % 56.23
Subtotal 10 2,466,990 97.2 % 97.2 % $ 93.61
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,068 53.6 % 53.6 % $ 50.35
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 43.8 % 43.8 % 47.69
140 Kendrick Street 6 Route 128 Mass Turnpike MA 3 418,600 84.4 % 84.4 % 53.72
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 100.0 % 58.00
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 82.4 % 82.4 % 44.34
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 94.6 % 97.0 % 45.79
200 West Street Route 128 Mass Turnpike MA 1 273,365 94.5 % 94.5 % 79.19
880 Winter Street 7 Route 128 Mass Turnpike MA 1 243,618 98.5 % 98.5 % 101.86
10 CityPoint Route 128 Mass Turnpike MA 1 236,570 100.0 % 100.0 % 55.80
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.1 % 98.1 % 56.99
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 97.8 % 97.8 % 54.81
890 Winter Street Route 128 Mass Turnpike MA 1 179,312 56.6 % 56.6 % 47.84
153 & 211 Second Avenue Route 128 Mass Turnpike MA 2 136,882 — % — % —
1265 Main Street (50% ownership) 4 Route 128 Mass Turnpike MA 1 120,681 100.0 % 100.0 % 53.93
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 100.0 % 53.10
The Point 5 Route 128 Mass Turnpike MA 1 16,300 100.0 % 100.0 % 57.21
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 100.0 % 74.65
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 100.0 % 28.87
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 100.0 % 67.57
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 100.0 % 47.83
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 100.0 % 71.66
Subtotal 27 4,870,250 76.6 % 76.7 % $ 57.49
Boston Office Total: 47 15,661,356 89.9 % 90.3 % $ 74.94
Residential
Hub50House (440 units) (50% ownership) 4 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 Q4 2023
--- ---
In-service property listing (continued) as of December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 51 16,569,873
LOS ANGELES
Office
Colorado Center (50% ownership) 4 West Los Angeles CA 6 1,131,511 87.8 % 87.8 % $ 75.69
Santa Monica Business Park 7 West Los Angeles CA 14 1,108,201 83.8 % 88.4 % 72.63
Santa Monica Business Park Retail 5, 7 West Los Angeles CA 7 74,404 88.4 % 88.4 % 73.01
Subtotal 27 2,314,116 85.9 % 88.1 % $ 74.18
Los Angeles Total: 27 2,314,116 85.9 % 88.1 % $ 74.18
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,966,490 91.6 % 95.6 % $ 161.52
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,670,790 95.9 % 95.9 % 96.31
399 Park Avenue Park Avenue NY 1 1,577,544 98.4 % 100.0 % 101.67
599 Lexington Avenue Park Avenue NY 1 1,106,313 92.4 % 96.3 % 87.59
Times Square Tower (55% ownership) Times Square NY 1 1,238,461 95.6 % 95.6 % 80.57
250 West 55th Street Times Square / West Side NY 1 966,976 100.0 % 100.0 % 93.83
200 Fifth Avenue (26.69% ownership) 4, 7 Flatiron District NY 1 855,059 92.5 % 100.0 % 99.47
Dock 72 (50% ownership) 4 Brooklyn NY 1 668,521 42.4 % 51.8 % 50.60
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 98.7 % 98.7 % 133.44
Subtotal 9 10,405,243 91.8 % 94.4 % $ 106.62
510 Carnegie Center Princeton NJ 1 234,160 33.5 % 33.5 % $ 41.83
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 100.0 % 35.46
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 79.2 % 38.01
212 Carnegie Center Princeton NJ 1 148,942 69.2 % 74.7 % 37.11
214 Carnegie Center Princeton NJ 1 146,799 65.9 % 65.9 % 37.27
506 Carnegie Center Princeton NJ 1 139,050 82.1 % 82.1 % 39.75
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 100.0 % 41.87
202 Carnegie Center Princeton NJ 1 134,068 84.9 % 84.9 % 40.98
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 100.0 % 41.26
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 100.0 % 35.51
101 Carnegie Center Princeton NJ 1 121,619 100.0 % 100.0 % 39.05
502 Carnegie Center Princeton NJ 1 121,460 94.4 % 96.8 % 39.75
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 100.0 % 42.41
104 Carnegie Center Princeton NJ 1 102,930 63.8 % 63.8 % 39.81
103 Carnegie Center Princeton NJ 1 96,331 73.5 % 73.5 % 37.05
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 100.0 % 36.35
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 100.0 % 37.82
201 Carnegie Center Princeton NJ — 6,500 100.0 % 100.0 % 36.59
Subtotal 17 2,191,464 81.8 % 82.3 % $ 38.95
New York Total: 26 12,596,707 90.1 % 92.4 % $ 95.95
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 99.0 % 99.0 % $ 111.51
Embarcadero Center Four CBD San Francisco CA 1 942,084 93.9 % 95.4 % 94.73
Embarcadero Center One CBD San Francisco CA 1 837,386 72.8 % 72.8 % 92.38
Embarcadero Center Two CBD San Francisco CA 1 801,840 84.5 % 84.5 % 87.84
Embarcadero Center Three CBD San Francisco CA 1 787,642 77.1 % 77.7 % 91.74 Q4 2023
--- ---
In-service property listing (continued) as of December 31, 2023
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 98.7 % 98.7 % 76.47
535 Mission Street CBD San Francisco CA 1 307,235 67.9 % 72.0 % 81.31
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 100.0 % 107.58
Subtotal 9 5,647,742 87.4 % 88.0 % $ 95.50
Gateway Commons (50% ownership) 4 South San Francisco CA 5 788,148 79.7 % 81.9 % $ 67.47
751 Gateway (49% ownership) 4, 7 South San Francisco CA 1 230,592 100.0 % 100.0 % 93.51
Mountain View Research Park Mountain View CA 15 542,264 60.7 % 60.7 % 71.44
2440 West El Camino Real Mountain View CA 1 142,789 71.5 % 71.5 % 97.37
453 Ravendale Drive Mountain View CA 1 29,620 100.0 % 100.0 % 51.64
North First Business Park 9 San Jose CA 5 190,636 87.6 % 87.6 % 24.34
Subtotal 28 1,924,049 77.3 % 78.2 % $ 69.32
San Francisco Office Total: 37 7,571,791 84.9 % 85.5 % $ 89.42
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 38 7,902,787
SEATTLE
Office
Safeco Plaza (33.67% ownership) 4 CBD Seattle WA 1 779,776 85.3 % 87.9 % $ 45.29
Madison Centre CBD Seattle WA 1 754,988 78.2 % 78.2 % 62.95
Subtotal 2 1,534,764 81.8 % 83.1 % $ 53.58
Seattle Total: 2 1,534,764 81.8 % 83.1 % $ 53.58
WASHINGTON, DC
Office
901 New York Avenue (25% ownership) 4, 8 East End Washington DC 1 548,425 83.2 % 84.0 % $ 67.45
Market Square North (50% ownership) 4 East End Washington DC 1 418,549 77.0 % 81.5 % 70.73
2100 Pennsylvania Avenue 7 CBD Washington DC 1 475,849 65.3 % 94.9 % 83.89
2200 Pennsylvania Avenue CBD Washington DC 1 459,811 94.9 % 94.9 % 86.34
1330 Connecticut Avenue CBD Washington DC 1 253,579 87.4 % 87.4 % 72.04
Sumner Square CBD Washington DC 1 219,412 90.7 % 90.7 % 48.36
500 North Capitol Street, N.W. (30% ownership) 4 Capitol Hill Washington DC 1 230,900 98.5 % 98.5 % 83.77
Capital Gallery Southwest Washington DC 1 176,809 80.8 % 80.8 % 55.64
Subtotal 8 2,783,334 83.2 % 89.1 % $ 73.21
Reston Next 7 Reston VA 2 1,063,296 88.4 % 91.6 % $ 60.26
South of Market Reston VA 3 623,250 98.7 % 99.7 % 55.52
Fountain Square Reston VA 2 524,638 87.0 % 93.6 % 53.62
One Freedom Square Reston VA 1 427,956 82.8 % 87.9 % 53.88
Two Freedom Square Reston VA 1 423,222 100.0 % 100.0 % 52.12
One and Two Discovery Square Reston VA 2 366,989 89.7 % 89.7 % 52.08
One Reston Overlook Reston VA 1 319,519 89.7 % 89.7 % 48.12
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 100.0 % 71.42
Reston Corporate Center Reston VA 2 261,046 100.0 % 100.0 % 49.28
Democracy Tower Reston VA 1 259,441 99.3 % 99.3 % 65.30
Fountain Square Retail 5 Reston VA 1 198,225 87.6 % 89.6 % 53.02
Two Reston Overlook Reston VA 1 134,615 100.0 % 100.0 % 52.31
Avant Retail 5, 7 Reston VA 1 26,179 100.0 % 100.0 % 59.76
Subtotal 19 4,904,185 92.4 % 94.4 % $ 56.15 Q4 2023
--- ---
In-service property listing (continued) as of December 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
WASHINGTON, DC (continued)
7750 Wisconsin Avenue (50% ownership) 4 Bethesda/Chevy Chase MD 1 735,573 100.0 % 100.0 % $ 38.49
Wisconsin Place Office Montgomery County MD 1 302,858 64.2 % 65.5 % 42.85
Kingstowne Two Springfield VA 1 156,005 77.4 % 77.4 % 39.83
Kingstowne One Springfield VA 1 153,601 34.2 % 34.2 % 38.00
Kingstowne Retail 5 Springfield VA 1 88,288 100.0 % 100.0 % 31.73
Shady Grove Innovation District North Rockville MD 1 78,915 75.9 % 75.9 % 15.45
Subtotal 6 1,515,240 82.6 % 83.2 % $ 37.70
Washington, DC Office Total: 33 9,202,759 88.0 % 91.0 % $ 58.14
Residential
Signature at Reston (508 units) Reston VA 1 517,783
Washington, DC Residential Total: 1 517,783
Washington, DC Total: 34 9,720,542
Total In-Service Properties: 178 50,638,789 88.4 % 10 89.9 % 10 $ 78.81 10
BXP’s Share of Total In-Service Properties: 3 88.2 % 10 89.7 % 10

_____________

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

2Represents signed leases for which revenue recognition has commenced in accordance with GAAP and signed leases for vacant space with future commencement dates. For additional detail, see pages 38-54.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

4This is an unconsolidated joint venture property.

5This is a retail property.

6 On July 20, 2023, the Company completed and fully placed in-service 140 Kendrick Street - Building A, a redevelopment project with approximately 104,000 net rentable square feet in Needham, Massachusetts. 140 Kendrick Street - Building A is not included in the Same Property analysis.

7Not included in the Same Property analysis.

8On January 8, 2024, the Company's joint venture partner in 901 New York Avenue transferred all of its ownership interest in the joint venture to the Company for a gross purchase price of $10.0 million.

9Property held for redevelopment.

10 Excludes hotel and residential properties. For additional detail, see pages 19-20.

Q4 2023
Top 20 clients listing and portfolio client diversification

as of December 31, 2023

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 Salesforce 3.31 % 8.2
2 Google 2.77 % 13.3
3 Biogen 2.60 % 3.6
4 Akamai Technologies 2.08 % 10.8
5 Snap 1.57 % 9.6
6 Fannie Mae 1.50 % 13.7
7 Kirkland & Ellis 1.48 % 13.5
8 Ropes & Gray 1.41 % 6.3
9 Wellington Management 1.21 % 12.2
10 Millennium Management 1.21 % 7.0
11 Microsoft 1.11 % 9.7
12 Weil Gotshal & Manges 1.09 % 10.4
13 Arnold & Porter Kaye Scholer 1.07 % 8.4
14 WeWork 1.07 % 9.1
15 Shearman & Sterling 1.04 % 17.6
16 Bank of America 0.90 % 11.2
17 Morrison & Foerster 0.85 % 6.7
18 Leidos 0.83 % 9.4
19 Wilmer Cutler Pickering Hale 0.83 % 14.9
20 Aramis (Estee Lauder) 0.81 % 16.3
BXP’s Share of Annualized Rental Obligations 28.74 %
BXP’s Share of Square Feet 1 22.80 %
Weighted Average Remaining Lease Term (years) 10.2

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 290 Binney Street 566,000
The Broad Institute 300 Binney Street 225,000

CLIENT DIVERSIFICATION 2

chart-560db75ae6204adc87fa.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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.

Q4 2023
Occupancy by location

as of December 31, 2023

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

CBD Suburban Total
Location 31-Dec-23 30-Sep-23 31-Dec-23 30-Sep-23 31-Dec-23 30-Sep-23
Boston 95.9 % 96.0 % 76.6 % 79.2 % 89.9 % 90.8 %
Los Angeles 85.9 % 85.9 % — % — % 85.9 % 85.9 %
New York 91.8 % 92.1 % 81.8 % 81.1 % 90.1 % 90.2 %
San Francisco 87.4 % 89.3 % 77.3 % 80.6 % 84.9 % 87.1 %
Seattle 81.8 % 84.7 % — % — % 81.8 % 84.7 %
Washington, DC 83.2 % 83.8 % 90.1 % 87.6 % 88.0 % 86.5 %
Total Portfolio 90.8 % 91.4 % 83.1 % 83.2 % 88.4 % 88.8 %

chart-edadd2ff61b24f93bf9a.jpg

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

CBD Suburban Total
Location 31-Dec-23 31-Dec-22 31-Dec-23 31-Dec-22 31-Dec-23 31-Dec-22
Boston 95.9 % 94.8 % 74.9 % 82.4 % 89.7 % 91.1 %
Los Angeles 87.8 % 89.5 % — % — % 87.8 % 89.5 %
New York 91.8 % 87.9 % 81.8 % 79.7 % 89.9 % 86.3 %
San Francisco 87.4 % 89.1 % 74.2 % 86.7 % 84.4 % 88.5 %
Seattle 81.8 % 88.3 % — % — % 81.8 % 88.3 %
Washington, DC 86.9 % 89.1 % 90.4 % 91.3 % 89.4 % 91.9 %
Total Portfolio 91.4 % 90.7 % 81.9 % 86.7 % 88.5 % 89.4 %

chart-0858ce3da0744b8aa56a.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 56.

Q4 2023
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 4,200,000
Unsecured Line of Credit —
Unsecured Term Loan 1,200,000
Unsecured Senior Notes, at face value 10,550,000
Outstanding Principal 15,950,000
Discount on Unsecured Senior Notes (13,302)
Deferred Financing Costs, Net (76,050)
Fair Value Debt Adjustment (4,351)
Consolidated Debt $ 15,856,297

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP 1 Stated Outstanding Principal
Santa Monica Business Park July 19, 2025 5.00% 4.06% $ 300,000
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
90 Broadway, 325 Main Street, 355 Main Street and Kendall Center Green Garage October 26, 2028 6.26% 6.04% 600,000
601 Lexington Avenue (55% ownership) January 9, 2032 2.93% 2.79% 1,000,000
Total $ 4,200,000

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 2

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% $ 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
5 Year Unsecured Senior Notes (“green bonds”) December 1, 2027 6.92% 6.75% 750,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
10.7 Year Unsecured Senior Notes (“green bonds”) January 15, 2034 6.62% 6.50% 750,000
$ 10,550,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 3
Common Stock 156,941 156,941 $ 11,012,550
Common Operating Partnership Units 18,574 18,574 1,303,338
Total Equity 175,515 $ 12,315,888
Consolidated Debt (A) $ 15,856,297
Add: BXP’s share of unconsolidated joint venture debt 4 1,421,655
Less: Partners’ share of consolidated debt 5 1,360,375
BXP’s Share of Debt 6 (B) $ 15,917,577
Consolidated Market Capitalization (C) $ 28,172,185
BXP’s Share of Market Capitalization 6 (D) $ 28,233,465
Consolidated Debt/Consolidated Market Capitalization (A÷C) 56.28 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 6 (B÷D) 56.38 %

_____________

1The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions and adjustments required to reflect loans at their fair values upon consolidation.

2All unsecured senior notes are rated BBB+ (negative), and Baa2 (stable) by S&P and Moody’s, respectively. In January 2024, the Company’s S&P credit rating was downgraded to BBB (negative).

Q4 2023
Capital structure

3Values are based on the December 29, 2023 closing price of $70.17 per share of BXP common stock.

4Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 35.

5Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 33.

6See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

Q4 2023
Debt analysis 1

as of December 31, 2023

(dollars in thousands)

chart-7a938e5709bf4ec5a5ba.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at December 31, 2023 Letters of Credit Remaining Capacity at December 31, 2023
Unsecured Line of Credit $ 1,815,000 $ — $ 6,727 $ 1,808,273

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

Facility Outstanding at December 31, 2023
Unsecured Term Loan $ 1,200,000 $ 1,200,000

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 5 Maturity (years)
Unsecured Debt 3 73.72 % 4.01 % 4.12 % 4.7
Secured Debt 4 26.28 % 3.84 % 4.09 % 4.6
Consolidated Debt 100.00 % 3.96 % 4.11 % 4.6

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 5 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 3, 4 100.00 % 3.96 % 4.11 % 4.6
Consolidated Debt 100.00 % 3.96 % 4.11 % 4.6

_____________

1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 35.

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

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

4On December 7, 2023, the Company entered into interest rate swap contracts with notional amounts aggregating $600.0 million to effectively fix Daily Compounded SOFR, the reference rate for the mortgage secured by 90 Broadway, 325 Main Street, 355 Main Street and Kendall Center Green Garage, at a weighted-average fixed interest rate of 3.7925% for the period commencing on December 15, 2023 and ending on October 26, 2028 for an all-in fixed rate of 6.04% per annum.

5The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, the effects of hedging transactions and adjustments required to reflect loans at their fair values upon consolidation.

Q4 2023
Senior unsecured debt covenant compliance ratios

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

This section presents such ratios as of December 31, 2023 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 48.5 % 45.3 %
Secured Debt/Total Assets Less than 50% 16.0 % 14.9 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.10 3.10
Unencumbered Assets/ Unsecured Debt Greater than 150% 229.5 % 249.2 %

_____________

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

Q4 2023
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
31-Dec-23 30-Sep-23
Net income (loss) attributable to Boston Properties, Inc. $ 119,925 $ (111,826)
Add:
Noncontrolling interest - common units of the Operating Partnership 13,906 (12,626)
Noncontrolling interest in property partnerships 19,324 20,909
Net income (loss) 153,155 (103,543)
Add:
Interest expense 155,080 147,812
Depreciation and amortization expense 212,067 207,435
Less:
Gains on sales of real estate — 517
Income (loss) from unconsolidated joint ventures 22,250 (247,556)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 39,320 40,202
EBITDAre 1 537,372 538,945
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 50,621 51,102
BXP’s Share of EBITDAre 1 (A) 486,751 487,843
Add:
Stock-based compensation expense 4,469 4,843
BXP’s Share of straight-line ground rent expense adjustment 1 174 854
BXP’s Share of lease transaction costs that qualify as rent inducements 1 1,314 (5,963)
Less:
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 3,129 —
BXP’s Share of straight-line rent 1 28,765 16,647
BXP’s Share of fair value lease revenue 1 3,441 3,907
BXP’s Share of amortization and accretion related to sales type lease 1 256 233
BXP’s Share of EBITDAre – cash 1 $ 457,117 $ 466,790
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,947,004 $ 1,951,372

Reconciliation of BXP’s Share of Net Debt 1

31-Dec-23 30-Sep-23
Consolidated debt $ 15,856,297 $ 14,961,715
Less:
Cash and cash equivalents 1,531,477 882,647
Net debt 1 14,324,820 14,079,068
Add:
BXP’s share of unconsolidated joint venture debt 2 1,421,655 1,518,195
Partners’ share of cash and cash equivalents from consolidated joint ventures 106,790 103,492
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 108,430 104,383
Partners’ share of consolidated joint venture debt 3 1,360,375 1,359,877
BXP’s share of related party note receivable 30,500 30,500
BXP’s Share of Net Debt 1 (B) $ 14,353,960 $ 14,205,995
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.37 7.28

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended December 31, 2023, see pages 35 and 64.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended December 31, 2023, see pages 33 and 62.

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

Q4 2023
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Dec-23 30-Sep-23
BXP’s Share of interest expense 1 $ 165,785 $ 161,038
Less:
BXP’s Share of hedge amortization, net of costs 1 2,030 (473)
BXP’s share of fair value interest adjustment 1 639 499
BXP’s Share of amortization of financing costs 1 5,410 5,264
Adjusted interest expense excluding capitalized interest (A) 157,706 155,748
Add:
BXP’s Share of capitalized interest 1 11,478 11,582
Adjusted interest expense including capitalized interest (B) $ 169,184 $ 167,330
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 457,117 $ 466,790
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 2.90 3.00
Interest Coverage Ratio (including capitalized interest) (C÷B) 2.70 2.79

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Dec-23 30-Sep-23
BXP’s Share of interest expense 1 $ 165,785 $ 161,038
Less:
BXP’s Share of hedge amortization, net of costs 1 2,030 (473)
BXP’s share of fair value interest adjustment 1 639 499
BXP’s Share of amortization of financing costs 1 5,410 5,264
Add:
BXP’s Share of capitalized interest 1 11,478 11,582
BXP’s Share of maintenance capital expenditures 1 16,165 16,995
Hotel improvements, equipment upgrades and replacements 358 141
Total Fixed Charges (A) $ 185,707 $ 184,466
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 457,117 $ 466,790
Fixed Charge Coverage Ratio (B÷A) 2.46 2.53

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

2For a quantitative reconciliation of BXP’s Share of EBITDAre – cash, see page 31.

Q4 2023
Consolidated joint ventures

d

as of December 31, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
100 Federal Street
Atlantic Wharf Office
767 Fifth Avenue 343 Madison Avenue Total Consolidated
ASSETS (The GM Building) 1 300 Binney Street 2 Joint Ventures
Real estate, net $ 3,201,755 $ 2,561,812 $ 5,763,567
Cash and cash equivalents 122,033 128,838 250,871
Other assets 304,276 401,399 705,675
Total assets $ 3,628,064 $ 3,092,049 $ 6,720,113
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,287,984 $ 989,181 $ 3,277,165
Other liabilities 92,381 260,409 352,790
Total liabilities 2,380,365 1,249,590 3,629,955
Equity:
Boston Properties, Inc. 750,244 699,195 1,449,439
Noncontrolling interests 497,455 1,143,264 1,640,719 3
Total equity 1,247,699 1,842,459 3,090,158
Total liabilities and equity $ 3,628,064 $ 3,092,049 $ 6,720,113
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 4 $ 48,813 $ 57,977 $ 106,790
Partners’ share of consolidated debt 4 $ 915,244 5 $ 445,131 $ 1,360,375

_____________

1Certain balances contain amounts that eliminate in consolidation.

2See the Acquisitions and Dispositions section of this Supplemental package on page 13.

3Amount excludes preferred shareholders’ capital.

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

5Amount adjusted for basis differentials.

Q4 2023
Consolidated joint ventures (continued)

for the three months ended December 31, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
100 Federal Street
Atlantic Wharf Office
767 Fifth Avenue 343 Madison Avenue Total Consolidated
(The GM Building) 300 Binney Street 1 Joint Ventures
Revenue
Lease 2 $ 72,156 $ 104,283 $ 176,439
Straight-line rent 7,639 3,330 10,969
Fair value lease revenue 327 — 327
Termination income — 300 300
Total lease revenue 80,122 107,913 188,035
Parking and other — 1,846 1,846
Total rental revenue 3 80,122 109,759 189,881
Expenses
Operating 31,732 39,807 71,539
Net Operating Income (NOI) 48,390 69,952 118,342
Other income (expense)
Development and management services revenue — 246 246
Gain from investment in securities — 5 5
Interest and other income 1,468 1,662 3,130
Interest expense (21,395) (7,687) (29,082)
Depreciation and amortization expense (17,454) (25,943) (43,397)
General and administrative expense (4) (86) (90)
Total other income (expense) (37,385) (31,803) (69,188)
Net income $ 11,005 $ 38,149 $ 49,154

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
100 Federal Street
Atlantic Wharf Office
767 Fifth Avenue 343 Madison Avenue Total Consolidated
Reconciliation of Partners’ share of FFO (The GM Building) 300 Binney Street 1 Joint Ventures
Net income $ 11,005 $ 38,149 $ 49,154
Add: Depreciation and amortization expense 17,454 25,943 43,397
Entity FFO $ 28,459 $ 64,092 $ 92,551
Noncontrolling interest in property partnerships (Partners’ NCI) 4 $ 3,432 $ 15,892 $ 19,324
Partners’ share of depreciation and amortization expense after BXP’s basis differential 4 7,325 11,959 19,284
Partners’ share FFO 4 $ 10,757 $ 27,851 $ 38,608
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 7,573 $ 22,257 $ 29,830
Depreciation and amortization expense - BXP’s basis difference 60 389 449
BXP’s share of depreciation and amortization expense 10,069 13,595 23,664
BXP’s share of FFO $ 17,702 $ 36,241 $ 53,943

_____________

1 See the Acquisitions and Dispositions section of this Supplemental package on page 13.

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 56.

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

Q4 2023
Unconsolidated joint ventures 1

as of December 31, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 57,660 166,629 September 5, 2024 6.82 % 6.96 %
Podium 50.00 % 45,201 76,644 September 8, 2025 7.35 % 7.75 %
Hub50House 50.00 % 40,235 91,923 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 13,494 — — — % — %
1265 Main Street 50.00 % 3,585 17,219 January 1, 2032 3.77 % 3.84 %
Los Angeles
Colorado Center 50.00 % 237,815 274,677 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 27,034 — — — % — %
New York
360 Park Avenue South 3 71.11 % 42,988 155,762 December 14, 2024 7.86 % 8.32 %
Dock 72 50.00 % (11,890) 98,751 December 18, 2025 7.86 % 8.11 %
200 Fifth Avenue 26.69 % 75,718 150,692 November 24, 2028 4.34 % 5.60 %
3 Hudson Boulevard 4 25.00 % 115,103 20,000 February 9, 2024 9.07 % 9.07 %
San Francisco
Platform 16 55.00 % 45,564 — — — % — %
Gateway Commons 50.00 % 376,834 — — — % — %
751 Gateway 49.00 % 93,411 — — — % — %
Seattle
Safeco Plaza 5 33.67 % 44,734 83,870 September 1, 2026 4.82 % 4.96 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 50,064 125,709 April 26, 2024 6.70 % 6.84 %
1001 6th Street 50.00 % 44,774 — — — % — %
13100 & 13150 Worldgate Drive 50.00 % 17,546 — — — % — %
Market Square North 50.00 % (5,996) 62,287 November 10, 2025 7.77 % 7.95 %
Wisconsin Place Parking Facility 33.33 % 30,375 — — — % — %
500 North Capitol Street, N.W. 6 30.00 % (10,253) 31,141 June 5, 2026 6.83 % 7.16 %
901 New York Avenue7 25.00 % (11,764) 51,829 January 5, 2025 3.61 % 3.69 %
Skymark - Reston Next Residential 20.00 % 15,184 14,522 May 13, 2026 7.34 % 7.66 %
1,337,416
Investments with deficit balances reflected within Other Liabilities 39,903
Investments in Unconsolidated Joint Ventures $ 1,377,319
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,421,655

chart-f7b164684ac844288b8a.jpg

Q4 2023
Unconsolidated joint ventures (continued) 1

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 51.17 % 7.07 % 7.30 % 1.2
Fixed Rate Debt 48.83 % 4.42 % 4.78 % 7.1
Total Debt 100.00 % 5.78 % 6.07 % 4.1

_____________

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

2The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, which includes mortgage recording fees, the effects of hedging transactions (if any) and adjustments required under Accounting Standards Codification 805 “Business Combinations” to reflect loans at their fair values (if any).

3The Company’s partner will fund required capital until their aggregate investment is approximately 29% of all capital contributions; thereafter, the partners will fund required capital according to their percentage interests. See page 14 for more information.

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

5Safeco Plaza entered into an interest rate cap agreement during Q3 2023 that capped SOFR at 2.50%.

6The indebtedness consists of (x) a $70.0 million mortgage loan payable (Note A) which bears interest at a fixed rate of 6.23% per annum, and (y) a $35.0 million mortgage loan payable (Note B) which bears interest at a fixed rate of 8.03% per annum. The Company provided $10.5 million (or 30%) of the Note B mortgage financing to the joint venture. The loan had been reflected as Related Party Note Receivable, Net on the Company’s Consolidated Balance Sheets.

7 On January 8, 2024, the Company's joint venture partner in 901 New York Avenue transferred all of their interest in the joint venture to the Company for a gross purchase price of $10.0 million.

Q4 2023
Unconsolidated joint ventures (continued)

for the three months ended December 31, 2023

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,991 $ 31,314 $ 23,456 $ 12,120 $ 6,811 $ 26,024 $ 124,716
Straight-line rent 1,354 (680) 935 4,164 726 1,297 7,796
Fair value lease revenue — 96 1,538 17 1,134 — 2,785
Termination income — — — — — — —
Amortization and accretion related to sales type lease 35 — — — — — 35
Total lease revenue 26,380 30,730 25,929 16,301 8,671 27,321 135,332
Parking and other 433 2,562 56 227 555 1,293 5,126
Total rental revenue 3 26,813 33,292 25,985 16,528 9,226 28,614 140,458
Expenses
Operating 8,650 14,087 14,023 5,248 3,598 10,536 56,142
Net operating income/(loss) 18,163 19,205 11,962 11,280 5,628 18,078 84,316
Other income/(expense)
Development and management services revenue — — 453 — — 27 480
Interest and other income (loss) (51) 772 305 6 142 731 1,905
Interest expense (11,516) (10,618) (13,576) — (4,295) (10,746) (50,751)
Unrealized loss on derivative instruments — — (20,671) — — — (20,671)
Transaction costs (122) — — — — — (122)
Depreciation and amortization expense (8,464) (11,241) (8,613) (6,193) (4,471) (7,195) (46,177)
General and administrative expense (3) (229) (181) (5) — (39) (457)
Gain on sales-type lease 2,737 — — — — — 2,737
Total other income/(expense) (17,419) (21,316) (42,283) (6,192) (8,624) (17,222) (113,056)
Net income/(loss) $ 744 $ (2,111) $ (30,321) $ 5,088 $ (2,996) $ 856 $ (28,740)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ 373 $ (1,318) $ (9,894) $ 2,508 $ (1,027) $ 498 4 $ (8,860)
Basis differential
Straight-line rent $ — $ 89 5 $ 284 5 $ 7 5 $ — $ — $ 380
Fair value lease revenue — 301 5 117 5 (219) 5 — — 199
Fair value interest adjustment — — (499) — — — (499)
Amortization of financing costs — — 105 — — — 105
Unrealized loss on derivative instruments — — 5,517 — — — 5,517
Depreciation and amortization expense (8) (1,090) 5 (1,551) 5 (506) 5 284 (133) (3,004)
Gain (loss) on sale / consolidation — 29,903 6 — — — (1,491) 28,412
Total basis differential 7 (8) 29,203 5 3,973 5 (718) 5 284 (1,624) 31,110
Income/(loss) from unconsolidated joint ventures 365 27,885 (5,921) 1,790 (743) (1,126) 4 22,250
Add:
BXP’s share of depreciation and amortization expense 4,240 7,007 4,624 3,590 1,222 3,449 4 24,132
Less:
Gain (loss) on sale / consolidation — 29,903 6 — — — (1,491) 28,412
BXP’s share of gain on sales-type lease 1,368 — — — — — 1,368
BXP’s share of FFO $ 3,237 $ 4,989 $ (1,297) $ 5,380 $ 479 $ 3,814 $ 16,602

_____________

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 56.

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 On December 14, 2023, the Company acquired its joint venture partner’s 45% ownership interest in Santa Monica Business Park located in Santa Monica, California for a purchase price of $38.0 million. The Company recognized a gain of approximately $29.9 million on the consolidation of Santa Monica Business Park.

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

Q4 2023
Lease expirations - All in-service properties1, 2, 3

as of December 31, 2023

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 149,604 8,213,101 63.83 0.33 % 4
2024 2,610,109 151,668,504 63.78 6.03 %
2025 3,025,480 188,932,090 72.89 6.57 %
2026 2,569,264 168,811,392 76.22 5.62 %
2027 2,316,883 157,083,888 75.27 5.29 %
2028 3,326,277 221,309,457 83.85 6.69 %
2029 3,673,929 232,237,160 71.27 8.26 %
2030 2,787,122 206,159,603 76.96 6.79 %
2031 2,254,726 166,707,986 84.49 5.00 %
2032 2,189,306 150,537,919 78.56 4.86 %
Thereafter 15,803,807 1,011,822,770 79.93 32.11 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 10,985 234,916 22.35 0.44 % 4
2024 66,082 5,427,554 83.40 2.75 %
2025 124,926 10,852,789 94.09 4.87 %
2026 112,972 22,338,097 218.84 4.31 %
2027 128,400 13,195,113 111.84 4.99 %
2028 90,900 10,535,201 118.21 3.77 %
2029 145,047 14,881,305 106.98 5.88 %
2030 138,145 9,567,643 93.80 4.31 %
2031 59,173 4,200,745 82.54 2.15 %
2032 101,253 7,405,532 74.39 4.21 %
Thereafter 1,094,745 87,974,070 98.16 37.87 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 160,589 8,448,017 60.70 0.33 % 4
2024 2,676,191 157,096,058 64.31 5.84 %
2025 3,150,406 199,784,879 73.79 6.48 %
2026 2,682,236 191,149,489 82.51 5.54 %
2027 2,445,283 170,279,001 77.23 5.28 %
2028 3,417,177 231,844,658 84.97 6.53 %
2029 3,818,976 247,118,465 72.73 8.13 %
2030 2,925,267 215,727,246 77.58 6.65 %
2031 2,313,899 170,908,731 84.44 4.84 %
2032 2,290,559 157,943,451 78.35 4.82 %
Thereafter 16,898,552 1,099,796,840 81.13 32.43 %

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 56.

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.

Q4 2023
Lease expirations - Boston region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 32,470 32,470 4
2024 530,286 495,772
2025 963,954 934,810
2026 808,220 775,358
2027 698,994 691,194
2028 1,018,286 995,459
2029 1,210,330 1,076,844
2030 1,481,025 1,474,352
2031 611,603 544,766
2032 528,812 528,812
Thereafter 5,251,469 4,312,684

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 28,854 28,854
2025 43,950 43,635
2026 26,513 26,513
2027 67,909 61,595
2028 43,449 43,449
2029 64,171 62,821
2030 92,892 57,592
2031 4,266 4,266
2032 65,011 64,420
Thereafter 483,914 410,014

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 32,470 32,470 4
2024 559,140 524,626
2025 1,007,904 978,445
2026 834,733 801,871
2027 766,903 752,789
2028 1,061,735 1,038,908
2029 1,274,501 1,139,665
2030 1,573,917 1,531,944
2031 615,869 549,032
2032 593,823 593,232
Thereafter 5,735,383 4,722,698

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 56.

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.

Q4 2023
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 32,470 32,470 4
Total 2023 32,470 32,470
Q1 2024 148,190 119,920
Q2 2024 158,766 155,311
Q3 2024 77,579 74,791
Q4 2024 145,751 145,751
Total 2024 530,286 495,772

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 15,418 15,418
Q2 2024 — —
Q3 2024 299 299
Q4 2024 13,137 13,137
Total 2024 28,854 28,854

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 32,470 32,470 4
Total 2023 32,470 32,470
Q1 2024 163,608 135,338
Q2 2024 158,766 155,311
Q3 2024 77,878 75,090
Q4 2024 158,888 158,888
Total 2024 559,140 524,626

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 56.

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.

Q4 2023
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 245,332 245,332
2025 29,821 29,821
2026 4,573 4,573
2027 28,614 28,614
2028 246,857 149,060
2029 415,771 240,815
2030 22,507 22,507
2031 — —
2032 241,672 122,706
Thereafter 647,840 554,393

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 2,000 1,000
2025 17,218 16,333
2026 — —
2027 — —
2028 — —
2029 38,118 38,118
2030 5,283 5,283
2031 — —
2032 — —
Thereafter 23,820 14,824

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 247,332 246,332
2025 47,039 46,154
2026 4,573 4,573
2027 28,614 28,614
2028 246,857 149,060
2029 453,889 278,933
2030 27,790 27,790
2031 — —
2032 241,672 122,706
Thereafter 671,660 569,217

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 56.

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.

Q4 2023
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 43,540 43,540
Q2 2024 — —
Q3 2024 25,347 25,347
Q4 2024 176,445 176,445
Total 2024 245,332 245,332

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 43,540 43,540
Q2 2024 — —
Q3 2024 27,347 26,347
Q4 2024 176,445 176,445
Total 2024 247,332 246,332

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 56.

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.

Q4 2023
Lease expirations - New York region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 17,441 10,815 4
2024 811,272 677,906
2025 1,081,400 768,532
2026 717,493 551,852
2027 425,717 354,611
2028 634,922 438,896
2029 817,446 784,988
2030 744,480 692,715
2031 397,288 347,169
2032 256,195 166,744
Thereafter 4,955,870 3,503,809

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 13,330 13,330
2025 4,179 4,179
2026 30,878 25,451
2027 — —
2028 2,424 647
2029 8,463 4,557
2030 2,895 2,053
2031 11,561 8,051
2032 12,182 11,064
Thereafter 269,160 159,507

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 17,441 10,815 4
2024 824,602 691,236
2025 1,085,579 772,711
2026 748,371 577,303
2027 425,717 354,611
2028 637,346 439,543
2029 825,909 789,545
2030 747,375 694,768
2031 408,849 355,220
2032 268,377 177,808
Thereafter 5,225,030 3,663,316

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 56.

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.

Q4 2023
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 17,441 10,815 4
Total 2023 17,441 10,815
Q1 2024 299,672 296,074
Q2 2024 239,129 134,622
Q3 2024 189,364 167,953
Q4 2024 83,107 79,256
Total 2024 811,272 677,906

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 — —
Total 2023 — —
Q1 2024 11,258 11,258
Q2 2024 2,072 2,072
Q3 2024 — —
Q4 2024 — —
Total 2024 13,330 13,330

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 17,441 10,815 4
Total 2023 17,441 10,815
Q1 2024 310,930 307,332
Q2 2024 241,201 136,694
Q3 2024 189,364 167,953
Q4 2024 83,107 79,256
Total 2024 824,602 691,236

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 56.

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.

Q4 2023
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 42,654 40,467 4
2024 565,515 514,390
2025 667,790 637,104
2026 679,126 588,034
2027 528,415 517,451
2028 618,063 588,076
2029 358,898 334,394
2030 359,484 347,871
2031 1,079,820 935,512
2032 307,574 277,057
Thereafter 929,778 929,778

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 792 792 4
2024 4,634 4,634
2025 28,108 28,108
2026 15,810 15,810
2027 14,945 14,945
2028 14,965 14,965
2029 3,403 3,403
2030 6,567 6,567
2031 14,256 10,902
2032 6,357 6,357
Thereafter 36,557 36,557

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 43,446 41,259 105.35 4
2024 570,149 519,024
2025 695,898 665,212
2026 694,936 603,844
2027 543,360 532,396
2028 633,028 603,041
2029 362,301 337,797
2030 366,051 354,438
2031 1,094,076 946,414
2032 313,931 283,414
Thereafter 966,335 966,335

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 56.

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.

Q4 2023
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 42,654 40,467 4
Total 2023 42,654 40,467
Q1 2024 57,889 36,998
Q2 2024 276,834 267,113
Q3 2024 46,972 36,300
Q4 2024 183,820 173,980
Total 2024 565,515 514,390

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 792 792 4
Total 2023 792 792
Q1 2024 2,813 2,813
Q2 2024 1,821 1,821
Q3 2024 — —
Q4 2024 — —
Total 2024 4,634 4,634

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 43,446 41,259 4
Total 2023 43,446 41,259
Q1 2024 60,702 39,811
Q2 2024 278,655 268,934
Q3 2024 46,972 36,300
Q4 2024 183,820 173,980
Total 2024 570,149 519,024

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 56.

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.

Q4 2023
Lease expirations - Seattle region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 18,272 6,152 4
2024 25,444 24,802
2025 32,959 16,876
2026 34,510 33,642
2027 76,817 73,898
2028 646,975 310,444
2029 254,663 234,605
2030 33,054 33,054
2031 4,742 1,597
2032 64,737 51,388
Thereafter 40,529 13,646

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 18,272 6,152 4
2024 25,444 24,802
2025 32,959 16,876
2026 38,196 34,883
2027 76,817 73,898
2028 647,920 311,389
2029 255,703 234,955
2030 33,054 33,054
2031 7,790 4,645
2032 64,737 51,388
Thereafter 44,247 17,364

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 56.

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.

Q4 2023
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 18,272 6,152 4
Total 2023 18,272 6,152
Q1 2024 22,104 22,104
Q2 2024 — —
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 25,444 24,802

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 18,272 6,152 4
Total 2023 18,272 6,152
Q1 2024 22,104 22,104
Q2 2024 — —
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 25,444 24,802

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 56.

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.

Q4 2023
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 38,767 38,767 4
2024 432,260 419,619
2025 249,556 204,875
2026 325,342 261,272
2027 558,326 421,118
2028 161,174 157,429
2029 616,821 586,969
2030 146,572 108,147
2031 161,273 143,988
2032 790,316 769,505
Thereafter 3,978,321 3,345,192

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 10,193 9,717 4
2024 17,264 17,264
2025 31,471 23,091
2026 36,085 33,061
2027 45,546 41,444
2028 29,117 29,117
2029 29,852 29,852
2030 30,508 30,508
2031 26,042 24,627
2032 17,703 17,703
Thereafter 277,576 271,568

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 48,960 48,484 4
2024 449,524 436,883
2025 281,027 227,966
2026 361,427 294,333
2027 603,872 462,562
2028 190,291 186,546
2029 646,673 616,821
2030 177,080 138,655
2031 187,315 168,615
2032 808,019 787,208
Thereafter 4,255,897 3,616,760

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 56.

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.

Q4 2023
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of December 31, 2023

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 38,767 38,767 4
Total 2023 38,767 38,767
Q1 2024 30,429 24,830
Q2 2024 41,509 41,509
Q3 2024 80,518 73,475
Q4 2024 279,804 279,804
Total 2024 432,260 419,619

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 10,193 9,717 4
Total 2023 10,193 9,717
Q1 2024 1,921 1,921
Q2 2024 4,466 4,466
Q3 2024 1,702 1,702
Q4 2024 9,175 9,175
Total 2024 17,264 17,264

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 — —
Q3 2023 — —
Q4 2023 48,960 48,484 4
Total 2023 48,960 48,484
Q1 2024 32,350 26,751
Q2 2024 45,975 45,975
Q3 2024 82,220 75,177
Q4 2024 288,979 288,979
Total 2024 449,524 436,883

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 56.

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.

Q4 2023
Lease expirations - CBD properties 1, 2, 3

as of December 31, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 26,759 26,759 4
2024 210,384 175,870
2025 340,202 310,743
2026 578,632 545,770
2027 497,297 483,182
2028 808,536 785,709
2029 799,837 665,001
2030 1,393,910 1,351,937
2031 43,944 37,448
2032 440,634 440,043
Thereafter 5,068,355 4,055,671

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 247,332 246,332
2025 47,039 46,154
2026 4,573 4,573
2027 28,614 28,614
2028 246,857 149,060
2029 453,889 278,933
2030 27,790 27,790
2031 — —
2032 241,672 122,706
Thereafter 671,660 569,217

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 17,441 10,815 4
2024 429,031 295,665
2025 830,260 517,392
2026 466,237 295,169
2027 227,662 156,556
2028 579,222 381,419
2029 634,613 598,249
2030 700,201 647,594
2031 247,573 193,944
2032 213,067 122,499
Thereafter 5,087,951 3,526,237

All values are in US Dollars.

Q4 2023
Lease expirations - CBD properties (continued) 1, 2, 3

as of December 31, 2023

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 17,987 17,987 4
2024 432,164 432,164
2025 299,631 299,631
2026 477,155 477,155
2027 439,091 439,091
2028 540,064 540,064
2029 284,098 284,098
2030 290,296 290,296
2031 803,362 803,362
2032 252,896 252,896
Thereafter 966,335 966,335

All values are in US Dollars.

Seattle, WA

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 18,272 6,152 4
2024 25,444 24,802
2025 32,959 16,876
2026 38,196 34,883
2027 76,817 73,898
2028 647,920 311,389
2029 255,703 234,955
2030 33,054 33,054
2031 7,790 4,645
2032 64,737 51,388
Thereafter 44,247 17,364

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 635 159 4
2024 37,330 24,689
2025 135,656 82,595
2026 169,935 102,841
2027 216,934 75,623
2028 74,058 70,313
2029 81,807 51,955
2030 72,929 34,504
2031 89,259 70,559
2032 311,503 290,692
Thereafter 1,094,477 823,126

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 56.

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.

Q4 2023
Lease expirations - Suburban properties 1, 2, 3

as of December 31, 2023

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 5,711 5,711 4
2024 348,756 348,756
2025 667,702 667,702
2026 256,101 256,101
2027 269,606 269,606
2028 253,199 253,199
2029 474,664 474,664
2030 180,007 180,007
2031 571,925 511,585
2032 153,189 153,189
Thereafter 667,028 667,028

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 — —
2024 395,571 395,571
2025 255,319 255,319
2026 282,134 282,134
2027 198,055 198,055
2028 58,124 58,124
2029 191,296 191,296
2030 47,174 47,174
2031 161,276 161,276
2032 55,310 55,310
Thereafter 137,079 137,079

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 25,459 23,272 4
2024 137,985 86,860
2025 396,267 365,581
2026 217,781 126,689
2027 104,269 93,305
2028 92,964 62,977
2029 78,203 53,699
2030 75,755 64,142
2031 290,714 143,051
2032 61,035 30,518
Thereafter — —

All values are in US Dollars.

Q4 2023
Lease expirations - Suburban properties (continued) 1, 2, 3

as of December 31, 2023

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 48,325 48,325 4
2024 412,194 412,194
2025 145,371 145,371
2026 191,492 191,492
2027 386,938 386,938
2028 116,233 116,233
2029 564,866 564,866
2030 104,151 104,151
2031 98,056 98,056
2032 496,516 496,516
Thereafter 3,161,420 2,793,634

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 56.

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.

Q4 2023
Research coverage

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

Equity Research Coverage
Argus Research Company Marie Ferguson 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Camille Bonnel 646.855.1363 / 416.369.2140
Barclays Anthony Powell 212.526.8768
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Nicholas Joseph / Michael Griffin 212.816.1909 / 212.816.5871
Compass Point Research & Trading, LLC Floris van Dijkum 646.757.2621
Deutsche Bank Omotayo Okusanya 212.250.9284
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs Caitlin Burrows 212.902.4736
Green Street Advisors Dylan Burzinski 949.640.8780
Jefferies & Co. Peter Abramowitz 212.336.7241
J.P. Morgan Securities Anthony Paolone 212.622.6682
Keybanc Capital Market Todd Thomas/Upal Rana 917.368.2286 / 917.368.2316
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
Scotiabank GBM Nicholas Yulico 212.225.6904
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wedbush Richard Anderson 212.938.9949
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
--- --- ---
Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.410.1100 Rating Agencies
--- --- ---
Moody’s Investors Service Christian Azzi 212.553.7718
Standard & Poor’s Hannah Gray 212.438.0244
Q4 2023
--- ---
Definitions

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

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP’s Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 60.

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

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q4 2023
Definitions (continued)

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

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q4 2023
Definitions (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties or a change in control, 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 or a change in control 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 (loss) 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 (loss) attributable to Boston Properties, Inc. (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

The Company treats a property as being “in-service” upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics, the Company specifies a single date for treating a property as “in-service,” which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In addition, under GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being “in-service,” and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company’s unconsolidated joint ventures. A property will no longer be considered “in-service” when the occupied percentage is below 50% and the Company is no longer actively leasing the property in anticipation of a future development/redevelopment.

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q4 2023
Definitions (continued)

Net Operating Income/(Loss) (NOI)

Net operating income/(loss) (NOI) is a non-GAAP financial measure equal to net income (loss) attributable to Boston Properties, Inc., the most directly comparable GAAP financial measure, plus (1) net (income) loss attributable to noncontrolling interests, corporate general and administrative expense, payroll and related costs from management services contracts, transaction costs, depreciation and amortization expense, losses from interest rate contracts, unrealized loss on non-real estate investment, 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 gain on sales-type lease. In some cases, the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a client), fair value lease revenue, amortization and accretion related to sales type lease, straight-line ground rent expense adjustment (excluding prepaid ground rent), prepaid ground rent expense and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q4 2023
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Dec-23 30-Sep-23
Revenue $ 828,933 $ 824,283
Partners’ share of revenue from consolidated joint ventures (JVs) (81,552) (83,203)
BXP’s share of revenue from unconsolidated JVs 63,776 67,723
BXP’s Share of revenue $ 811,157 $ 808,803
Straight-line rent $ 29,235 $ 19,139
Partners’ share of straight-line rent from consolidated JVs (4,555) (5,994)
BXP’s share of straight-line rent from unconsolidated JVs 4,085 3,502
BXP’s Share of straight-line rent $ 28,765 $ 16,647
Fair value lease revenue 2 $ 2,518 $ 2,981
Partners’ share of fair value lease revenue from consolidated JVs 2 (131) (137)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 1,054 1,063
BXP’s Share of fair value lease revenue 2 $ 3,441 $ 3,907
Lease termination income $ 10,485 $ 2,564
Partners’ share of termination income from consolidated JVs (135) (129)
BXP’s share of termination income from unconsolidated JVs — 500
BXP’s Share of termination income $ 10,350 $ 2,935
Non-cash termination income adjustment (fair value lease amounts) $ 3,129 $ —
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) $ 3,129 $ —
Parking and other revenue $ 30,676 $ 29,649
Partners’ share of parking and other revenue from consolidated JVs (831) (1,080)
BXP’s share of parking and other revenue from unconsolidated JVs 2,407 3,465
BXP’s Share of parking and other revenue $ 32,252 $ 32,034
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 584 (1,919)
BXP’s Share of hedge amortization, net of costs $ 2,030 $ (473)
Straight-line ground rent expense adjustment $ 35 $ 713
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 139 141
BXP’s Share of straight-line ground rent expense adjustment $ 174 $ 854
Depreciation and amortization $ 212,067 $ 207,435
Noncontrolling interests in property partnerships’ share of depreciation and amortization (19,284) (18,174)
BXP’s share of depreciation and amortization from unconsolidated JVs 24,132 25,666
BXP’s Share of depreciation and amortization $ 216,915 $ 214,927
Lease transaction costs that qualify as rent inducements 3 $ 1,276 $ (5,943)
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (164) (303)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 202 283
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 1,314 $ (5,963)
2nd generation tenant improvements and leasing commissions $ 65,117 $ 104,872
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (12,582) (25,715)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 1,174 775
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 53,709 $ 79,932 Q4 2023
--- ---
Reconciliations (continued) Maintenance capital expenditures 4 $ 18,302 $ 19,599
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (2,918) (2,695)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 781 91
BXP’s Share of maintenance capital expenditures 4 $ 16,165 $ 16,995
Interest expense $ 155,080 $ 147,812
Partners’ share of interest expense from consolidated JVs (12,013) (12,019)
BXP’s share of interest expense from unconsolidated JVs 22,718 25,245
BXP’s Share of interest expense $ 165,785 $ 161,038
Capitalized interest $ 9,207 $ 9,676
Partners’ share of capitalized interest from consolidated JVs (24) (16)
BXP’s share of capitalized interest from unconsolidated JVs 2,295 1,922
BXP’s Share of capitalized interest $ 11,478 $ 11,582
Amortization of financing costs $ 5,430 $ 5,121
Partners’ share of amortization of financing costs from consolidated JVs (498) (498)
BXP’s share of amortization of financing costs from unconsolidated JVs 478 641
BXP’s Share of amortization of financing costs $ 5,410 $ 5,264
Fair value interest adjustment $ 140 $ —
Partners’ share of fair value of interest adjustment from consolidated JVs — —
BXP’s share off fair value interest adjustment from unconsolidated JVs 499 499
BXP’s Share of fair value interest adjustment $ 639 $ 499
Amortization and accretion related to sales type lease $ 238 $ 233
Partners’ share of amortization and accretion related to sales type lease from consolidated JVs — —
BXP’s share off amortization and accretion related to sales type lease from unconsolidated JVs 18 —
BXP’s Share of amortization and accretion related to sales type lease $ 256 $ 233

_____________

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.

Q4 2023
Reconciliations (continued)

for the three months ended December 31, 2023

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 100 Federal Street
Atlantic Wharf Office
767 Fifth Avenue 343 Madison Avenue Total Consolidated
(The GM Building) 300 Binney Street 1 Joint Ventures
Revenue
Lease 2 $ 72,156 $ 104,283 $ 176,439
Straight-line rent 7,639 3,330 10,969
Fair value lease revenue 327 — 327
Termination income — 300 300
Total lease revenue 80,122 107,913 188,035
Parking and other — 1,846 1,846
Total rental revenue 3 80,122 109,759 189,881
Expenses
Operating 31,732 39,807 71,539
Net Operating Income (NOI) 48,390 69,952 118,342
Other income (expense)
Development and management services revenue — 246 246
Gain from investment in securities — 5 5
Interest and other income 1,468 1,662 3,130
Interest expense (21,395) (7,687) (29,082)
Depreciation and amortization expense (17,454) (25,943) (43,397)
General and administrative expense (4) (86) (90)
Total other income (expense) (37,385) (31,803) (69,188)
Net income $ 11,005 $ 38,149 $ 49,154
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 4 $ 18,730 $ 30,533 $ 49,263
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 29,660 $ 39,419 $ 69,079
Unearned portion of capitalized fees 5 $ 93 $ 468 $ 561
Partners’ share of select items 4
Partners’ share of parking and other revenue $ — $ 831 $ 831
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 152 $ 498
Partners’ share of depreciation and amortization related to capitalized fees $ 367 $ 460 $ 827
Partners’ share of capitalized interest $ — $ 24 $ 24
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (164) $ (164)
Partners’ share of management and other fees $ 631 $ 972 $ 1,603
Partners’ share of basis differential depreciation and amortization expense $ (24) $ (175) $ (199)
Partners’ share of basis differential interest and other adjustments $ (4) $ 19 $ 15
Reconciliation of Partners’ share of EBITDAre 6
Partners’ NCI $ 3,432 $ 15,892 $ 19,324
Add:
Partners’ share of interest expense after BXP’s basis differential 8,554 3,459 12,013
Partners’ share of depreciation and amortization expense after BXP’s basis differential 7,325 11,959 19,284
Partners’ share of EBITDAre $ 19,311 $ 31,310 $ 50,621
Q4 2023
--- ---
Reconciliations (continued)

for the three months ended December 31, 2023

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
100 Federal Street
Atlantic Wharf Office
767 Fifth Avenue 343 Madison Avenue Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 6 (The GM Building) 300 Binney Street 1 Joint Ventures
Rental revenue 3 $ 32,049 $ 49,392 $ 81,441
Less: Termination income — 135 135
Rental revenue (excluding termination income) 3 32,049 49,257 81,306
Less: Operating expenses (including partners’ share of management and other fees) 13,319 18,880 32,199
Income allocation to private REIT shareholders — (21) (21)
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 18,730 $ 30,398 $ 49,128
Rental revenue (excluding termination income) 3 $ 32,049 $ 49,257 $ 81,306
Less: Straight-line rent 3,056 1,499 4,555
Fair value lease revenue 131 — 131
Add: Lease transaction costs that qualify as rent inducements — 164 164
Subtotal 28,862 47,922 76,784
Less: Operating expenses (including partners’ share of management and other fees) 13,319 18,880 32,199
Income allocation to private REIT shareholders — (21) (21)
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 15,543 $ 29,063 $ 44,606
Reconciliation of Partners’ share of Revenue 4
Rental revenue 3 $ 32,049 $ 49,392 $ 81,441
Add: Development and management services revenue — 111 111
Revenue $ 32,049 $ 49,503 $ 81,552

_________

1See the Acquisitions and Dispositions section of this Supplemental package on page 13.

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

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

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

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

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

Q4 2023
Reconciliations (continued)

for the three months ended December 31, 2023

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1

Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 2 $ 24,991 $ 31,314 $ 23,456 $ 12,120 $ 6,811 $ 26,024 $ 124,716
Straight-line rent 1,354 (680) 935 4,164 726 1,297 7,796
Fair value lease revenue — 96 1,538 17 1,134 — 2,785
Amortization and accretion related to sales type lease 35 — — — — — 35
Total lease revenue 26,380 30,730 25,929 16,301 8,671 27,321 135,332
Parking and other 433 2,562 56 227 555 1,293 5,126
Total rental revenue 3 26,813 33,292 25,985 16,528 9,226 28,614 140,458
Expenses
Operating 8,650 14,087 14,023 4 5,248 3,598 10,536 56,142
Net operating income/(loss) 18,163 19,205 11,962 11,280 5,628 18,078 84,316
Other income/(expense)
Development and management services revenue — — 453 — — 27 480
Interest and other income (loss) (51) 772 305 6 142 731 1,905
Interest expense (11,516) (10,618) (13,576) — (4,295) (10,746) (50,751)
Unrealized loss on derivative instruments — — (20,671) — — — (20,671)
Transaction costs (122) — — — — — (122)
Depreciation and amortization expense (8,464) (11,241) (8,613) (6,193) (4,471) (7,195) (46,177)
General and administrative expense (3) (229) (181) (5) — (39) (457)
Gain on sales-type lease 2,737 — — — — — 2,737
Total other income/(expense) (17,419) (21,316) (42,283) (6,192) (8,624) (17,222) (113,056)
Net income/(loss) $ 744 $ (2,111) $ (30,321) $ 5,088 $ (2,996) $ 856 $ (28,740)
BXP’s share of select items:
BXP’s share of parking and other revenue $ 217 $ 1,305 $ 28 $ 114 $ 187 $ 556 5 $ 2,407
BXP’s share of amortization of financing costs $ 177 $ 82 $ 65 $ — $ 29 $ 125 5 $ 478
BXP’s share of hedge amortization, net of costs $ — $ — $ — $ — $ 584 $ — $ 584
BXP’s share of fair value interest adjustment $ — $ — $ 499 $ — $ — $ — $ 499
BXP’s share of capitalized interest $ — $ — $ 2,065 $ — $ — $ 230 5 $ 2,295
BXP’s share of amortization and accretion related to sales type lease $ 18 $ — $ — $ — $ — $ — $ 18
Reconciliation of BXP’s share of EBITDAre
Income/(loss) from unconsolidated joint ventures $ 365 $ 27,885 $ (5,921) $ 1,790 $ (743) $ (1,126) 5 $ 22,250
Add:
BXP’s share of interest expense 5,758 5,587 4,933 — 1,446 4,994 5 22,718
BXP’s share of depreciation and amortization expense 4,240 7,007 6 4,624 3,590 6 1,222 3,449 5 24,132
Less:
Gain (loss) on sale / consolidation — 29,903 7 — — — (1,491) 28,412
BXP’s share of gain on sales-type lease 1,368 — — — — — 1,368
BXP’s share of EBITDAre $ 8,995 $ 10,576 6 $ 3,636 $ 5,380 6 $ 1,925 $ 8,808 5 $ 39,320 Q4 2023
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Seattle Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 3 $ 13,407 $ 17,704 6 $ 8,009 6 $ 8,008 6 $ 3,106 $ 13,301 5 $ 63,535
BXP’s share of operating expenses 4,325 7,387 4,646 2,624 1,210 4,823 5 25,015
BXP’s share of net operating income/(loss) 9,082 10,317 6 3,363 6 5,384 6 1,896 8,478 5 38,520
Less:
BXP’s share of termination income — — — — — — —
BXP’s share of net operating income/(loss) (excluding termination income) 9,082 10,317 3,363 5,384 1,896 8,478 5 38,520
Less:
BXP’s share of straight-line rent 677 (269) 6 699 6 2,045 6 244 689 5 4,085
BXP’s share of fair value lease revenue — 354 6 528 6 (210) 6 382 — 1,054
BXP’s share of amortization and accretion related to sales type lease 18 — — — — — 18
Add:
BXP’s share of straight-line ground rent expense adjustment — — 139 — — — 139
BXP’s share of lease transaction costs that qualify as rent inducements — 326 (174) — — 50 5 202
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 8,387 $ 10,558 6 $ 2,101 6 $ 3,549 6 $ 1,270 $ 7,839 5 $ 33,704
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 13,407 $ 17,704 6 $ 8,009 6 $ 8,008 6 $ 3,106 $ 13,301 5 $ 63,535
Add:
BXP’s share of development and management services revenue — — 227 — — 14 241
BXP’s share of revenue $ 13,407 $ 17,704 6 $ 8,236 6 $ 8,008 6 $ 3,106 $ 13,315 5 $ 63,776

_____________

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 56.

4 Includes approximately $278 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.

7 On December 14, 2023, the Company acquired its joint venture partner’s 45% ownership interest in Santa Monica Business Park located in Santa Monica, California for a purchase price of $38.0 million. The Company recognized a gain of approximately $29.9 million on the consolidation of Santa Monica Business Park..

Q4 2023
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Sep-23 30-Sep-22
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership (12,626) 40,883
Noncontrolling interest in property partnerships 20,909 18,801
Net income (loss) (103,543) 420,661
Add:
Interest expense 147,812 111,846
Losses from investments in securities 925 1,571
Loss from unconsolidated joint ventures 247,556 3,524
Depreciation and amortization expense 207,435 190,675
Transaction costs 751 1,650
Payroll and related costs from management services contracts 3,906 3,900
General and administrative expense 31,410 32,519
Less:
Interest and other income (loss) 20,715 3,728
Unrealized loss on non-real estate investment (51) —
Gains on sales of real estate 517 262,345
Direct reimbursements of payroll and related costs from management services contracts 3,906 3,900
Development and management services revenue 9,284 7,465
Net Operating Income (NOI) 501,881 488,908
Add:
BXP’s share of NOI from unconsolidated joint ventures 39,165 35,316
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 50,047 48,306
BXP’s Share of NOI 490,999 475,918
Less:
Termination income 2,564 1,980
BXP’s share of termination income from unconsolidated joint ventures 500 500
Add:
Partners’ share of termination income from consolidated joint ventures 129 57
BXP’s Share of NOI (excluding termination income) $ 488,064 $ 473,495
Net Operating Income (NOI) $ 501,881 $ 488,908
Less:
Termination income 2,564 1,980
NOI from non Same Properties (excluding termination income) 26,144 14,621
Same Property NOI (excluding termination income) 473,173 472,307
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 49,918 48,249
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) 38,665 34,816
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 5,094 796
BXP’s Share of Same Property NOI (excluding termination income) $ 456,826 $ 458,078
Change in BXP’s Share of Same Property NOI (excluding termination income) $ (1,252)
Change in BXP’s Share of Same Property NOI (excluding termination income) (0.3) %
Q4 2023
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
30-Sep-23 30-Sep-22
Net income (loss) attributable to Boston Properties, Inc. $ (111,826) $ 360,977
Net (income) loss attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership (12,626) 40,883
Noncontrolling interest in property partnerships 20,909 18,801
Net income (loss) (103,543) 420,661
Add:
Interest expense 147,812 111,846
Losses from investments in securities 925 1,571
Loss from unconsolidated joint ventures 247,556 3,524
Depreciation and amortization expense 207,435 190,675
Transaction costs 751 1,650
Payroll and related costs from management services contracts 3,906 3,900
General and administrative expense 31,410 32,519
Less:
Interest and other income (loss) 20,715 3,728
Unrealized loss on non-real estate investment (51) —
Gains on sales of real estate 517 262,345
Direct reimbursements of payroll and related costs from management services contracts 3,906 3,900
Development and management services revenue 9,284 7,465
Net Operating Income (NOI) 501,881 488,908
Less:
Straight-line rent 19,139 32,140
Fair value lease revenue 2,981 2,442
Amortization and accretion related to sales type lease 233 —
Termination income 2,564 1,980
Add:
Straight-line ground rent expense adjustment 1 578 631
Lease transaction costs that qualify as rent inducements 2 (5,943) 4,667
NOI - cash (excluding termination income) 471,599 457,644
Less:
NOI - cash from non Same Properties (excluding termination income) 18,721 9,868
Same Property NOI - cash (excluding termination income) 452,878 447,776
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 44,090 45,046
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) 34,524 30,969
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3,175 730
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 440,137 $ 432,969
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 7,168
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 1.7 %

_____________

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 $135 and $169 for the three months ended September 30, 2023 and 2022, respectively. As of September 30, 2023, the Company has remaining lease payments aggregating approximately $24.3 million, all of which it expects to incur by the end of 2025 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2025 may vary significantly.

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

Q4 2023
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Dec-22 30-Sep-22
Revenue
Lease $ 739,094 $ 739,255
Parking and other 26,088 26,259
Insurance proceeds 903 1,895
Hotel revenue 11,087 11,749
Development and management services 8,406 7,465
Direct reimbursements of payroll and related costs from management services contracts 4,246 3,900
Total revenue 789,824 790,523
Expenses
Operating 144,668 145,083
Real estate taxes 135,529 135,670
Demolition costs 203 —
Restoration expenses related to insurance claim 1,865 949
Hotel operating 7,646 8,548
General and administrative 36,000 32,519
Payroll and related costs from management services contracts 4,246 3,900
Transaction costs 759 1,650
Depreciation and amortization 198,330 190,675
Total expenses 529,246 518,994
Other income (expense)
Loss from unconsolidated joint ventures (58,451) (3,524)
Gains on sales of real estate 55,726 262,345
Gain on sales-type lease 10,058 —
Gains (losses) from investments in securities 2,096 (1,571)
Interest and other income (loss) 5,789 3,728
Unrealized loss on non-real estate investment (150) —
Interest expense (119,923) (111,846)
Net income 155,723 420,661
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (19,961) (18,801)
Noncontrolling interest - common units of the Operating Partnership (13,972) (40,883)
Net income attributable to Boston Properties, Inc. $ 121,790 $ 360,977
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.78 $ 2.30
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.78 $ 2.29

68

Document

Exhibit 99.2

bxp-colora.gif

BXP ANNOUNCES FOURTH QUARTER AND FULL YEAR 2023 RESULTS

Exceeded Full Year 2023 Guidance for EPS and FFO; Executed More Than 1.5 Million Square Feet of Leases in Q4 and Approximately 4.2 Million Square Feet in 2023

BOSTON, MA, January 30, 2024 - BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the fourth quarter ended December 31, 2023.

Financial highlights for the fourth quarter include:

•Revenue increased 5.0% to $828.9 million for the quarter ended December 31, 2023, compared to $789.8 million for the quarter ended December 31, 2022.

•Net income attributable to Boston Properties, Inc. of $119.9 million, or $0.76 per diluted share (EPS), for the quarter ended December 31, 2023, compared to $121.8 million, or $0.78 per diluted share, for the quarter ended December 31, 2022.

•EPS exceeded the mid-point of BXP’s guidance by $0.15 per diluted share primarily due to:

•better-than-projected income from unconsolidated joint ventures, largely from recording a gain upon consolidation of Santa Monica Business Park of $0.17 per diluted share following BXP’s acquisition of its partner’s 45% interest in the asset, and

•better-than-projected interest income and development and management services income aggregating $0.02 per diluted share;

•offset by higher-than-projected depreciation expense of $0.04 per diluted share.

•Funds from Operations (FFO) of $286.2 million, or $1.82 per diluted share, for the quarter ended December 31, 2023, compared to FFO of $292.9 million, or $1.86 per diluted share, for the quarter ended December 31, 2022.

•FFO per diluted share exceeded the mid-point of BXP’s guidance by $0.02 per diluted share, primarily due to better-than-projected interest income and development and management services income.

BXP also provided guidance for first quarter 2024 EPS of $0.66 - $0.68 and FFO of $1.72 - $1.74 per diluted share, and full year 2024 EPS of $2.26 - $2.46 and FFO of $7.00 - $7.20 per diluted share.

The mid-point of guidance for 2024 EPS is projected to be 95% higher than full year 2023 EPS primarily due to:

•2023 non-cash impairment charges of $1.56 per diluted share offset by $0.23 per diluted share of gains related to BXP’s investments in its unconsolidated joint ventures that are not projected to reoccur in 2024

–more–

The mid-point of guidance for 2024 FFO per diluted share is projected to be 2.5% lower than full year 2023 FFO per diluted share primarily due to:

•higher net interest expense of $0.31 per diluted share,

•lower contributions from same property portfolio performance of $0.26 per diluted share, and

•reduced fee and termination income of $0.14 per diluted share;

•offset by an estimated $0.42 per diluted share of projected contributions from our acquisition and disposition activity and development deliveries.

See “EPS and FFO per Share Guidance” below.

Fourth quarter and recent business highlights include:

•Executed more than 1.5 million square feet of leases with a weighted-average lease term of 8.4 years.

•Entered into agreements to sell a 45% interest in each of 290 Binney Street and 300 Binney Street, two life sciences development projects located in Kendall Square in Cambridge, Massachusetts, to Norges Bank Investment Management (“NBIM”) at a gross valuation of approximately $1.66 billion or $2,050 per square foot. The properties total approximately 810,000 square feet and each is 100% pre-leased. BXP will retain a 55% ownership interest in each joint venture and will provide development, property management, and leasing services for the ventures. NBIM funded approximately $212.9 million at closing for its investment in 300 Binney Street and, upon closing of its investment in 290 Binney Street, NBIM’s investment will reduce BXP’s estimated future development spend over time by approximately $533.5 million.

•Closed on a five-year mortgage loan collateralized by a three-building portfolio located in Cambridge, Massachusetts. The mortgage loan, totaling $600 million, requires interest-only payments at Daily Compounded SOFR plus a 2.25% per annum until maturity. Subsequently, BPLP entered into interest rate swap contracts with notional amounts aggregating $600.0 million to fix Daily Compounded SOFR at a weighted-average fixed interest rate of 3.7925% for the period commencing on December 15, 2023 and ending on October 26, 2028 for an all in rate of 6.04% per annum. BXP intends to use the net proceeds from this financing and available cash to repay the $700 million senior unsecured notes due February 1, 2024.

•Completed the acquisition of its joint venture partner’s 45% ownership interest in Santa Monica Business Park located in Santa Monica, California for a purchase price of $38.0 million. BXP also assumed the partner’s share of the joint venture’s cash and working capital aggregating approximately $20.0 million, as well as the partner’s share of the outstanding $300.0 million mortgage debt. Subsequent to closing, BXP extended the approximately 467,000 square foot lease with anchor client, Snap Inc., through 2036. Santa Monica Business Park is a 47-acre office park consisting of 21 buildings totaling approximately 1.2 million net rentable square feet. Approximately 70% of the square footage is subject to a ground lease with approximately 75 years remaining, inclusive of renewal options that are subject to certain conditions.

•Completed the acquisition of one of its joint venture partner’s approximate 29% ownership interest in 360 Park Avenue South located in New York City, New York for a purchase price of $1, increasing BXP’s ownership interest in the asset to approximately 71%. BXP also assumed the partner’s share of the joint venture’s cash and working capital aggregating approximately $25.4 million, as well as the partner’s share of the outstanding $220.0 million mortgage debt. 360 Park Avenue South, a 20-story, approximately 450,000 square foot premier workplace, is currently under re-development.

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•On January 8, 2024, BXP completed the acquisition of its joint venture partner’s 50% economic ownership interest in 901 New York Avenue located in Washington, DC for a purchase price of $10.0 million. BXP also assumed the partner’s share of the outstanding approximately $207.1 million mortgage debt, which bears interest at 3.61% per annum and matures on January 5, 2025. On January 11, 2024, BXP modified the mortgage loan to provide for two loan extension options totaling five years of additional term, each subject to certain conditions. The first loan extension option, for a term of four years, is at a fixed interest rate of 5.0% per annum. Subsequent to closing, BXP extended the 214,000 square foot lease with anchor client, Finnegan Henderson Farabow Garrett & Dunner, L.L.P., through 2042. 901 New York Avenue is a premier workplace consisting of approximately 548,000 net rentable square feet.

Financial highlights for the year ended December 31, 2023 include:

•Net income attributable to Boston Properties, Inc. of $190.2 million, or $1.21 per diluted share (EPS) for the year ended December 31, 2023, compared to $848.9 million, or $5.40 per diluted share, for the year ended December 31, 2022. The year-over-year decrease is primarily due to:

•a 2023 non-cash impairment charge of $272.6 million related to BXP’s investments in four of its unconsolidated joint ventures, and

•gains on sales of real estate of $436.5 million in 2022 that did not reoccur in 2023.

•Funds from Operations (FFO) of $1.1 billion, or $7.28 per diluted share for the year ended December 31, 2023, compared to FFO of $1.2 billion, or $7.53 per diluted share, for the year ended December 31, 2022.

Full year 2023 business highlights include:

•Executed approximately 4.2 million square feet of leases with a weighted-average lease term of 8.2 years.

•Completed and fully placed in-service four development projects: 2100 Pennsylvania Avenue in Washington, DC, 140 Kendrick Street in Needham, Massachusetts, View Boston in Boston, Massachusetts, and 751 Gateway in South San Francisco, California.

•Commenced the development/redevelopment of two fully pre-leased projects totaling 810,000 square feet in Cambridge, Massachusetts: 290 Binney Street and 300 Binney Street.

•Further strengthened BXP’s balance sheet by addressing debt maturities, and sourcing additional liquidity in the bank market. In the aggregate, BXP’s share of 2023 debt market activities totaled approximately $3.3 billion, which includes more than $1 billion of mortgage financing. Notable transactions not mentioned in fourth quarter highlights include:

–more–

•On January 4, 2023, BPLP closed on a $1.2 billion unsecured term loan facility that matures May 16, 2024, with one, twelve-month extension option subject to the satisfaction of customary conditions. As of January 4, 2023, the term loan bore interest at a variable rate equal to adjusted Term SOFR plus 0.85% per annum. Subsequently, on May 2, 2023, BPLP entered into four interest rate swap contracts with notional amounts aggregating $1.2 billion to fix Term SOFR at a weighted-average rate of 4.6420% for the period commencing on May 4, 2023 and ending on May 16, 2024. A portion of the proceeds were used to repay in full BPLP’s $730.0 million term loan that was scheduled to mature in May 2023, resulting in incremental net proceeds of approximately $466.0 million.

•On May 15, 2023, BPLP completed a public offering of $750.0 million aggregate principal amount of 6.500% unsecured senior notes due 2034. The net proceeds from the offering were approximately $741.3 million after deducting underwriting discounts and transaction expenses. BPLP used a portion of the proceeds to repay $500.0 million in aggregate principal amount of its 3.125% senior notes due September 1, 2023.

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

•Named to Newsweek’s List of America’s Most Responsible Companies in 2023 for the third consecutive year, ranking first in the Real Estate & Housing category

•Named to the Dow Jones Sustainability Index (DJSI) North America for the second consecutive year, one of eight real estate companies that qualified and the only office REIT in the index

•Received the 2023 ENERGY STAR Partner of the Year—Sustained Excellence Award from the U.S. Environmental Protection Agency and the U.S. Department of Energy for the third consecutive year

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

•Earned a top ESG rating in the 2023 GRESB® assessment, earned its 12th consecutive “Green Star” recognition and the highest GRESB 5-star rating, as well as an “A” level disclosure score. BXP also achieved the highest scores in several categories, including Data Monitoring & Review, Targets, Policies, Reporting, and Stakeholder Engagement. BXP achieved second place within its Development Peer Group, third place in its Standing Investments Peer Group, and fourth overall among U.S. listed participants.

The reported results are unaudited and there can be no assurance that these reported results will not vary from the final information for the quarter and year ended December 31, 2023. In the opinion of management, BXP has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

BXP’s guidance for the first quarter 2024 and full year 2024 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect

–more–

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

First Quarter 2024 Full Year 2024
Low High Low High
Projected EPS (diluted) $ 0.66 $ 0.68 $ 2.26 $ 2.46
Add:
Projected Company share of real estate depreciation and amortization1 1.20 1.20 4.88 4.88
Projected Company share of (gains)/losses on sales of real estate, gain on investment from unconsolidated joint venture and impairments (0.14) (0.14) (0.14) (0.14)
Projected FFO per share (diluted) $ 1.72 $ 1.74 $ 7.00 $ 7.20

1Excludes estimated non-real estate related amortization of $0.01 and $0.05 per share for First Quarter 2024 and Full Year 2024 respectively.

BXP will host a conference call on Wednesday, January 31, 2024 at 10:00 AM Eastern Time, open to the general public, to discuss the fourth quarter and full year 2023 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BI5e085f4df712444fa9623bfc3ed2c866 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 fourth quarter 2023 “Supplemental Operating and Financial Data” and this press release are available in the Investors section of BXP’s website at investors.bxp.com.

BXP (NYSE: BXP) is the largest publicly traded developer, owner, and manager of premier workplaces in the United States, concentrated in six dynamic gateway markets - Boston, Los Angeles, New York, San Francisco, Seattle, and Washington, DC. BXP has delivered places that power progress for our clients and communities for more than 50 years. BXP is a fully integrated real estate company, organized as a real estate investment trust (REIT). Including properties owned by unconsolidated joint ventures, BXP’s portfolio totals 53.3 million square feet and 188

–more–

properties, including 10 properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

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

Financial tables follow.

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BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
December 31, 2023 December 31, 2022
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 25,504,868 $ 24,261,588
Construction in progress 547,280 406,574
Land held for future development 697,061 721,501
Right of use assets - finance leases 401,680 237,510
Right of use assets - operating leases 324,298 167,351
Less: accumulated depreciation (6,881,728) (6,298,082)
Total real estate 20,593,459 19,496,442
Cash and cash equivalents 1,531,477 690,333
Cash held in escrows 81,090 46,479
Investments in securities 36,337 32,277
Tenant and other receivables, net 122,407 81,389
Note receivable, net 1,714 —
Related party note receivable, net 88,779 78,576
Sales-type lease receivable, net 13,704 12,811
Accrued rental income, net 1,355,212 1,276,580
Deferred charges, net 760,421 733,282
Prepaid expenses and other assets 64,230 43,589
Investments in unconsolidated joint ventures 1,377,319 1,715,911
Total assets $ 26,026,149 $ 24,207,669
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 4,166,379 $ 3,272,368
Unsecured senior notes, net 10,491,617 10,237,968
Unsecured line of credit — —
Unsecured term loan, net 1,198,301 730,000
Lease liabilities - finance leases 417,961 249,335
Lease liabilities - operating leases 350,391 204,686
Accounts payable and accrued expenses 458,329 417,545
Dividends and distributions payable 171,176 170,643
Accrued interest payable 133,684 103,774
Other liabilities 445,947 450,918
Total liabilities 17,833,785 15,837,237
Commitments and contingencies — —
Redeemable deferred stock units 8,383 6,613
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 157,019,766 and 156,836,767 issued and 156,940,866 and 156,757,867 outstanding at December 31, 2023 and December 31, 2022, respectively 1,569 1,568
Additional paid-in capital 6,715,149 6,539,147
Dividends in excess of earnings (816,152) (391,356)
Treasury common stock at cost, 78,900 shares at December 31, 2023 and December 31, 2022 (2,722) (2,722)
Accumulated other comprehensive income (loss) (21,147) (13,718)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,876,697 6,132,919
Noncontrolling interests:
Common units of the Operating Partnership 666,580 683,583
Property partnerships 1,640,704 1,547,317
Total equity 8,183,981 8,363,819
Total liabilities and equity $ 26,026,149 $ 24,207,669

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended December 31, Year ended December 31,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Revenue
Lease $ 768,884 $ 739,094 $ 3,054,673 $ 2,918,368
Parking and other 31,497 26,991 112,918 107,225
Hotel 11,803 11,087 47,357 39,482
Development and management services 12,728 8,406 40,850 28,056
Direct reimbursements of payroll and related costs from management services contracts 4,021 4,246 17,771 15,450
Total revenue 828,933 789,824 3,273,569 3,108,581
Expenses
Operating
Rental 301,411 282,265 1,183,947 1,108,070
Hotel 8,373 7,646 32,225 27,478
General and administrative 38,771 36,000 170,158 146,378
Payroll and related costs from management services contracts 4,021 4,246 17,771 15,450
Transaction costs 2,343 759 4,313 2,905
Depreciation and amortization 212,067 198,330 830,813 749,775
Total expenses 566,986 529,246 2,239,227 2,050,056
Other income (expense)
Income (loss) from unconsolidated joint ventures 22,250 (58,451) (239,543) (59,840)
Gains on sales of real estate — 55,726 517 437,019
Gain on sales-type lease — 10,058 — 10,058
Interest and other income (loss) 20,965 5,789 69,964 11,940
Other income - assignment fee — — — 6,624
Gains (losses) from investments in securities 3,245 2,096 5,556 (6,453)
Losses from interest rate contracts (79) — (79) —
Unrealized gain (loss) on non-real estate investment (93) (150) 239 (150)
Interest expense (155,080) (119,923) (579,572) (437,139)
Net income 153,155 155,723 291,424 1,020,584
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (19,324) (19,961) (78,661) (74,857)
Noncontrolling interest—common units of the Operating Partnership (13,906) (13,972) (22,548) (96,780)
Net income attributable to Boston Properties, Inc. $ 119,925 $ 121,790 $ 190,215 $ 848,947
Basic earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.76 $ 0.78 $ 1.21 $ 5.41
Weighted average number of common shares outstanding 156,945 156,773 156,863 156,726
Diluted earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.76 $ 0.78 $ 1.21 $ 5.40
Weighted average number of common and common equivalent shares outstanding 157,276 157,112 157,201 157,137

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended December 31, Year ended December 31,
2023 2022 2023 2022
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. $ 119,925 $ 121,790 $ 190,215 $ 848,947
Add:
Noncontrolling interest - common units of the Operating Partnership 13,906 13,972 22,548 96,780
Noncontrolling interests in property partnerships 19,324 19,961 78,661 74,857
Net income 153,155 155,723 291,424 1,020,584
Add:
Depreciation and amortization expense 212,067 198,330 830,813 749,775
Noncontrolling interests in property partnerships’ share of depreciation and amortization (19,284) (17,435) (73,027) (70,208)
Company’s share of depreciation and amortization from unconsolidated joint ventures 24,132 24,626 101,199 89,275
Corporate-related depreciation and amortization (453) (431) (1,810) (1,679)
Non-real estate related amortization (1,681) — (1,681) —
Impairment losses included within loss from unconsolidated joint ventures — 50,705 272,603 50,705
Less:
Gains on sales of real estate — 55,726 517 437,019
Gain on sales-type lease — 10,058 — 10,058
Gain on sale / consolidation included within income (loss) from unconsolidated joint ventures 28,412 — 28,412 —
Gain on investment included within income (loss) from unconsolidated joint ventures — — 35,756 —
Gain on sales-type lease included within Income (loss) from unconsolidated joint ventures 1,368 — 1,368 —
Unrealized gain (loss) on non-real estate investment (93) (150) 239 (150)
Noncontrolling interests in property partnerships 19,324 19,961 78,661 74,857
Funds from operations (FFO) attributable to the Operating Partnership (including Boston Properties, Inc.) 318,925 325,923 1,274,568 1,316,668
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 32,722 32,983 130,771 133,115
Funds from operations attributable to Boston Properties, Inc. $ 286,203 $ 292,940 $ 1,143,797 $ 1,183,553
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.74 % 89.88 % 89.74 % 89.89 %
Weighted average shares outstanding - basic 156,945 156,773 156,863 156,726
FFO per share basic $ 1.82 $ 1.87 $ 7.29 $ 7.55
Weighted average shares outstanding - diluted 157,276 157,112 157,201 157,137
FFO per share diluted $ 1.82 $ 1.86 $ 7.28 $ 7.53

(1)Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“Nareit”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP) for gains (or losses) from sales of properties, including a change in control, 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 or a change in control of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

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

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Occupied by Location (1) % Leased by Location (2)
December 31, 2023 December 31, 2022 December 31, 2023 December 31, 2022
Boston 89.9 % 90.2 % 90.3 % 92.7 %
Los Angeles 85.9 % 88.3 % 88.1 % 88.6 %
New York 90.1 % 86.8 % 92.4 % 90.9 %
San Francisco 84.9 % 88.5 % 85.5 % 88.8 %
Seattle 81.8 % 88.3 % 83.1 % 90.9 %
Washington, DC 88.0 % 88.7 % 91.0 % 93.0 %
Total Portfolio 88.4 % 88.6 % 89.9 % 91.5 %

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

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

AT BXP

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

mlabelle@bxp.com

Helen Han

Vice President, Investor Relations

hhan@bxp.com

#

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