Equibles

8-K

BXP, Inc. (BXP)

8-K 2023-04-25 For: 2023-04-25
View Original
Added on April 08, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 25, 2023

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On April 25, 2023, Boston Properties, Inc. (the “Company”), the general partner of Boston Properties Limited Partnership, issued a press release announcing its financial results for the first quarter of 2023. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 2023.
*99.2 Press release dated April 25, 2023.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document.
*101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document.
*101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document.
*104 Cover Page Interactive Data File (formatted as Inline XBRL with applicable taxonomy extension information contained in Exhibits 101.*).

______________

* Filed herewith.

SIGNATURES

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

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

Date: April 25, 2023

Document

Exhibit 99.1

a290binney.jpg

bxp-colorb.gif

Supplemental Operating and Financial Data

for the Quarter Ended March 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 54.5 million square feet and 192 properties, including 15 properties under construction/redevelopment. BXP’s properties include 171 office properties, 14 retail properties (including 2 retail properties under construction/redevelopment), six residential properties (including one residential property under construction) and one hotel. BXP is well-known for its in-house building management expertise and responsiveness to clients’ needs. BXP holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy clients. BXP actively works to promote its growth and operations in a sustainable and responsible manner.  BXP has earned an eleventh consecutive GRESB “Green Star” recognition and the highest GRESB 5-star Rating. BXP, an S&P 500 company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increasing interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, including the ongoing war in Ukraine, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease, such as the COVID-19 global pandemic on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. BXP does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as otherwise required by law.

NON-GAAP FINANCIAL MEASURES

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

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

GENERAL INFORMATION

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

(Cover photo: Rendering of 290 Binney Street, Cambridge, MA)

Q1 2023
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance and assumptions 2
FINANCIAL INFORMATION
Financial Highlights 3
Consolidated Balance Sheets 4
Consolidated Income Statements 5
Funds From Operations (FFO) 6
Funds Available for Distribution (FAD) 7
Net Operating Income (NOI) 8
Same Property Net Operating Income (NOI) by Reportable Segment 10
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 11
Acquisitions and Dispositions 12
DEVELOPMENT ACTIVITY
Construction in Progress 13
Land Parcels and Purchase Options 15
LEASING ACTIVITY
Leasing Activity 16
PROPERTY STATISTICS
Portfolio Overview 17
Residential and Hotel Performance 18
In-Service Property Listing 20
Top 20 Clients Listing and Portfolio Client Diversification 24
Occupancy by Location 25
DEBT AND CAPITALIZATION
Capital Structure 26
Debt Analysis 27
Senior Unsecured Debt Covenant Compliance Ratios 28
Net Debt to EBITDAre 29
Debt Ratios 30
JOINT VENTURES
Consolidated Joint Ventures 31
Unconsolidated Joint Ventures 33
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 36
Boston 37
Los Angeles 39
New York 41
San Francisco 43
Seattle 45
Washington, DC 47
CBD 49
Suburban 51
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 53
Definitions 54
Reconciliations 58
Consolidated Income Statement - Prior Year 66
Q1 2023
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Company profile

SNAPSHOT

(as of March 31, 2023)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 192
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 54.5 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 175.5 million
Closing Price, at the end of the quarter $54.12 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 7.2%
Consolidated Market Capitalization 2 $24.2 billion
BXP’s Share of Market Capitalization 2, 3 $24.5 billion
Unsecured Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

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

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

MANAGEMENT

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

___________________

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

2For additional detail, see page 26.

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

Q1 2023
Guidance and assumptions

GUIDANCE

BXP’s guidance for the second quarter 2023 and full year 2023 for diluted earnings per common share attributable to Boston Properties, Inc. (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, interest rates, the timing of the lease-up of available space, the timing of development cost outlays and development deliveries, and the earnings impact of the events referenced in the Company’s earnings release issued on April 25, 2023 and those referenced during the related conference call.  The estimates do not include (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) the impacts of any other capital markets activity, (3) future write-offs or reinstatements of accounts receivable and accrued rent balances, or (4) future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate, and any gains or losses associated with disposition activity. BXP is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate, or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 56. There can be no assurance that BXP’s actual results will not differ materially from the estimates set forth below.

Second Quarter 2023 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 0.59 $ 0.61 $ 2.30 $ 2.36
Add:
Projected Company share of real estate depreciation and amortization 1.20 1.20 4.84 4.84
Projected FFO per share (diluted) $ 1.79 $ 1.81 $ 7.14 $ 7.20

ASSUMPTIONS

(dollars in thousands)

Full Year 2023
Low High
Operating property activity:
Average In-service portfolio occupancy 88.00 % 89.50 %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) (0.50) % 0.50 %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) 1.00 % 2.50 %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year (excluding asset sales) $ 100,000 $ 108,000
BXP’s Share of incremental net operating income related to asset sales over prior year $ (30,000) $ (28,000)
BXP’s Share of straight-line rent and fair value lease revenue (non-cash revenue) $ 110,000 $ 125,000
Termination income $ 3,000 $ 5,000
Other revenue (expense):
Development, management services and other revenue $ 32,000 $ 36,000
General and administrative expense 1 $ (164,000) $ (157,000)
Consolidated net interest expense 2 $ (525,000) $ (515,000)
Noncontrolling interest:
Noncontrolling interest in property partnerships’ share of FFO $ (153,000) $ (148,000)

_______________

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

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

Q1 2023
Financial highlights

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

Three Months Ended
31-Mar-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 121,790
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.50 $ 0.78
FFO attributable to Boston Properties, Inc. 1 $ 271,951 $ 292,940
Diluted FFO per share 1 $ 1.73 $ 1.86
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 245,861 $ 236,218
Selected items:
Revenue $ 803,200 $ 789,824
Recoveries from clients $ 134,010 $ 121,750
Service income from clients $ 2,227 $ 3,044
BXP’s Share of revenue 3 $ 789,411 $ 772,897
BXP’s Share of straight-line rent 3 $ 23,863 $ 31,029
BXP’s Share of fair value lease revenue 3, 4 $ 4,579 $ 3,841
BXP’s Share of termination income 3 $ 900 $ 2,320
Ground rent expense $ 3,810 $ 2,794
Capitalized interest $ 10,589 $ 12,082
Capitalized wages $ 4,491 $ 4,054
Loss from unconsolidated joint ventures $ (7,569) $ (58,451)
BXP’s share of FFO from unconsolidated joint ventures 5 $ 18,076 $ 16,880
Net income attributable to noncontrolling interests in property partnerships $ 18,660 $ 19,961
FFO attributable to noncontrolling interests in property partnerships 6 $ 36,371 $ 37,396
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 3,844 $ 4,182
Below-market rents (included within Other Liabilities) $ 48,694 $ 52,628
Accrued rental income liability (included within Other Liabilities) $ 127,005 $ 124,436
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 7 3.27 3.57
Interest Coverage Ratio (including capitalized interest) 7 3.00 3.22
Fixed Charge Coverage Ratio 7 2.67 2.77
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) 8 7.78 7.56
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 9 0.4 % 0.1 %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 9 4.8 % 2.6 %
FAD Payout Ratio 2 69.98 % 72.62 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 62.7 % 63.2 %
Occupancy % of In-Service Properties 10 88.6 % 88.6 %
Leased % of In-Service Properties 11 91.0 % 91.5 %
Capitalization:
Consolidated Debt $ 14,709,436 $ 14,240,336
BXP’s Share of Debt 12 $ 14,955,407 $ 14,482,308
Consolidated Market Capitalization $ 24,206,901 $ 26,064,674
Consolidated Debt/Consolidated Market Capitalization 60.77 % 54.63 %
BXP’s Share of Market Capitalization 12 $ 24,452,872 $ 26,306,646
BXP’s Share of Debt/BXP’s Share of Market Capitalization 12 61.16 % 55.05 %

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

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

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

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

5For a quantitative reconciliation for the three months ended March 31, 2023, see page 35.

6For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

7For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see page 30.

8For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see page 29.

9For a quantitative reconciliation for the three months ended March 31, 2023 and December 31, 2022, see pages 10, 64 and 65.

10Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

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

12For a quantitative reconciliation for March 31, 2023, see page 26.

Q1 2023
Consolidated Balance Sheets

(unaudited and in thousands)

31-Mar-23 31-Dec-22
ASSETS
Real estate $ 24,314,813 $ 24,261,588
Construction in progress 618,770 406,574
Land held for future development 626,137 721,501
Right of use assets - finance leases 237,503 237,510
Right of use assets - operating leases 166,699 167,351
Less accumulated depreciation (6,424,547) (6,298,082)
Total real estate 19,539,375 19,496,442
Cash and cash equivalents 918,952 690,333
Cash held in escrows 45,330 46,479
Investments in securities 32,099 32,277
Tenant and other receivables, net 85,603 81,389
Related party note receivable, net 78,544 78,576
Sales-type lease receivable, net 13,028 12,811
Accrued rental income, net 1,297,767 1,276,580
Deferred charges, net 720,174 733,282
Prepaid expenses and other assets 141,933 43,589
Investments in unconsolidated joint ventures 1,752,617 1,715,911
Total assets $ 24,625,422 $ 24,207,669
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,273,553 $ 3,272,368
Unsecured senior notes, net 10,240,967 10,237,968
Unsecured line of credit — —
Unsecured term loan, net 1,194,916 730,000
Lease liabilities - finance leases 250,567 249,335
Lease liabilities - operating leases 204,435 204,686
Accounts payable and accrued expenses 397,798 417,545
Dividends and distributions payable 171,427 170,643
Accrued interest payable 114,400 103,774
Other liabilities 465,276 450,918
Total liabilities 16,313,339 15,837,237
Commitments and contingencies — —
Redeemable deferred stock units 5,599 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 — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,908,693 and 156,836,767 issued and 156,829,793 and 156,757,867 outstanding at March 31, 2023 and December 31, 2022, respectively 1,568 1,568
Additional paid-in capital 6,549,314 6,539,147
Dividends in excess of earnings (467,159) (391,356)
Treasury common stock at cost, 78,900 shares at March 31, 2023 and December 31, 2022 (2,722) (2,722)
Accumulated other comprehensive loss (18,214) (13,718)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,062,787 6,132,919
Noncontrolling interests:
Common units of the Operating Partnership 691,627 683,583
Property partnerships 1,552,070 1,547,317
Total equity 8,306,484 8,363,819
Total liabilities and equity $ 24,625,422 $ 24,207,669
Q1 2023
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Consolidated Income Statements

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-23 31-Dec-22
Revenue
Lease $ 756,875 $ 739,094
Parking and other 23,064 26,088
Insurance proceeds 945 903
Hotel revenue 8,101 11,087
Development and management services 8,980 8,406
Direct reimbursements of payroll and related costs from management services contracts 5,235 4,246
Total revenue 803,200 789,824
Expenses
Operating 147,182 144,668
Real estate taxes 139,432 135,529
Demolition costs 2,275 203
Restoration expenses related to insurance claims 2,419 1,865
Hotel operating 6,671 7,646
General and administrative 1 55,802 36,000
Payroll and related costs from management services contracts 5,235 4,246
Transaction costs 911 759
Depreciation and amortization 208,734 198,330
Total expenses 568,661 529,246
Other income (expense)
Loss from unconsolidated joint ventures 2 (7,569) (58,451)
Gains on sales of real estate — 55,726
Gain on sales-type lease 3 — 10,058
Gains from investments in securities 1 1,665 2,096
Unrealized gain (loss) on non-real estate investment 259 (150)
Interest and other income (loss) 10,941 5,789
Interest expense (134,207) (119,923)
Net income 105,628 155,723
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (18,660) (19,961)
Noncontrolling interest - common units of the Operating Partnership 4 (9,078) (13,972)
Net income attributable to Boston Properties, Inc. $ 77,890 $ 121,790
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.50 $ 0.78
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.50 $ 0.78

_____________

1General and administrative expense includes $1.7 million and $2.1 million and Gains from investments in securities include $1.7 million and $2.1 million for the three months ended March 31, 2023 and December 31, 2022, respectively, related to the Company’s deferred compensation plan.

2For the three months ended December 31, 2022, includes a $50.7 million non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest.

3The Company amended and modified a ground lease with a hotel developer that originally was classified and accounted for as an operating lease due to certain termination provisions. Upon modification, the 99-year ground lease, of which approximately 97 years remain, was reclassified as a sales-type lease. As a result, during the three months ended December 31, 2022, the Company derecognized the underlying asset resulting in a gain on sales-type lease of approximately $10.1 million. The hotel developer intends to construct a 267-room hotel on the land.

4For additional detail, see page 6.

Q1 2023
Funds from operations (FFO) 1

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

Three Months Ended
31-Mar-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 121,790
Add:
Noncontrolling interest - common units of the Operating Partnership 9,078 13,972
Noncontrolling interests in property partnerships 18,660 19,961
Net income 105,628 155,723
Add:
Depreciation and amortization expense 208,734 198,330
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (17,711) (17,435)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 25,645 24,626
Corporate-related depreciation and amortization (469) (431)
Impairment loss included within loss from unconsolidated joint ventures — 50,705
Less:
Gains on sales of real estate — 55,726
Gain on sales-type lease — 10,058
Unrealized gain (loss) on non-real estate investment 259 (150)
Noncontrolling interests in property partnerships 18,660 19,961
FFO attributable to the Operating Partnership (including Boston Properties, Inc.) (Basic FFO) 302,908 325,923
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 30,957 32,983
FFO attributable to Boston Properties, Inc. $ 271,951 $ 292,940
Boston Properties, Inc.’s percentage share of Basic FFO 89.78 % 89.88 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.22 % 10.12 %
Basic FFO per share $ 1.73 $ 1.87
Weighted average shares outstanding - basic 156,803 156,773
Diluted FFO per share $ 1.73 $ 1.86
Weighted average shares outstanding - diluted 157,043 157,112

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Mar-23 31-Dec-22
Basic FFO $ 302,908 $ 325,923
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 302,908 325,923
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 30,927 33,687
Boston Properties, Inc.’s share of Diluted FFO $ 271,981 $ 292,236

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Mar-23 31-Dec-22
Shares/units for Basic FFO 174,652 174,423
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 240 339
Shares/units for Diluted FFO 174,892 174,762
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,849 17,650
Boston Properties, Inc.’s share of shares/units for Diluted FFO 157,043 157,112
Boston Properties, Inc.’s percentage share of Diluted FFO 89.79 % 89.90 %

_____________

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

2For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2023, see page 35.

Q1 2023
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Mar-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 121,790
Add:
Noncontrolling interest - common units of the Operating Partnership 9,078 13,972
Noncontrolling interests in property partnerships 18,660 19,961
Net income 105,628 155,723
Add:
Depreciation and amortization expense 208,734 198,330
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (17,711) (17,435)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 25,645 24,626
Corporate-related depreciation and amortization (469) (431)
Impairment loss included within loss from unconsolidated joint ventures — 50,705
Less:
Gains on sales of real estate — 55,726
Gain on sales-type lease — 10,058
Unrealized gain (loss) on non-real estate investment 259 (150)
Noncontrolling interests in property partnerships 18,660 19,961
Basic FFO 302,908 325,923
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 5,519 11,711
BXP’s Share of hedge amortization, net of costs 1 1,750 1,751
BXP’s share of fair value interest adjustment 1 499 250
BXP’s Share of straight-line ground rent expense adjustment 1, 5 543 404
Stock-based compensation 25,935 7,496
Non-real estate depreciation 469 431
Unearned portion of capitalized fees from consolidated joint ventures 6 622 1,135
Less:
BXP’s Share of straight-line rent 1 23,863 31,029
BXP’s Share of fair value lease revenue 1, 7 4,579 3,841
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 45,155 55,613
BXP’s Share of maintenance capital expenditures 1, 8 18,508 22,229
Amortization and accretion related to sales type lease 226 —
Hotel improvements, equipment upgrades and replacements 53 171
Funds available for distribution to common shareholders and common unitholders (FAD) (A) $ 245,861 $ 236,218
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 172,054 $ 171,548
FAD Payout Ratio1 (B÷A) 69.98 % 72.62 %

_____________

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

2For a quantitative reconciliation for the three months ended March 31, 2023, see page 32.

3For a quantitative reconciliation for the three months ended March 31, 2023, see page 35.

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

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

6See page 60 for additional information.

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

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

Q1 2023
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI)

(in thousands)

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

_____________

1For a quantitative reconciliation for the three months ended March 31, 2023, see page 63.

2For a quantitative reconciliation for the three months ended March 31, 2023, see pages 60-61.

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to March 31, 2023 and therefore are no longer a part of the Company’s property portfolio.

Q1 2023
Reconciliation of net income attributable to Boston Properties, Inc. to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

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

_____________

1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $(190) and $168 for the three months ended March 31, 2023 and 2022, respectively. As of March 31, 2023, the Company has remaining lease payments aggregating approximately $24.7 million, all of which it expects to incur by the end of 2024 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2024 may vary significantly.

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

3Pages 20-23 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to March 31, 2023 and therefore are no longer a part of the Company’s property portfolio.

4For a quantitative reconciliation for the three months ended March 31, 2023, see page 61.

5For a quantitative reconciliation for the three months ended March 31, 2023, see page 63.

Q1 2023
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Mar-23 31-Mar-22 Change Change 31-Mar-23 31-Mar-22 Change Change
Rental Revenue 2 $ 710,263 $ 698,322 $ 19,827 $ 14,585
Less: Termination income 195 2,078 — —
Rental revenue (excluding termination income) 2 710,068 696,244 2.0 % 19,827 14,585 35.9 %
Less: Operating expenses and real estate taxes 269,871 255,164 14,707 5.8 % 12,134 10,025 2,109 21.0 %
NOI (excluding termination income) 2, 3 $ 440,197 $ 441,080 (0.2) % $ 7,693 $ 4,560 68.7 %
Rental revenue (excluding termination income) 2 $ 710,068 $ 696,244 2.0 % $ 19,827 $ 14,585 35.9 %
Less: Straight-line rent and fair value lease revenue 17,455 15,475 1,980 12.8 % 12 16 (4) (25.0) %
Add: Lease transaction costs that qualify as rent inducements 4 4,031 (4,604) 8,635 187.6 % — — — — %
Subtotal 696,644 676,165 20,479 3.0 % 19,815 14,569 5,246 36.0 %
Less: Operating expenses and real estate taxes 269,871 255,164 14,707 5.8 % 12,134 10,025 2,109 21.0 %
Add: Straight-line ground rent expense 5 591 576 15 2.6 % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 427,364 $ 421,577 1.4 % $ 7,681 $ 4,544 69.0 %
Consolidated Total 1 (A) BXP’s share of Unconsolidated Joint Ventures (B)
Three Months Ended % Three Months Ended %
31-Mar-23 31-Mar-22 Change Change 31-Mar-23 31-Mar-22 Change Change
Rental Revenue 2 $ 730,090 $ 712,907 $ 59,108 $ 57,363
Less: Termination income 195 2,078 866 606
Rental revenue (excluding termination income) 2 729,895 710,829 2.7 % 58,242 56,757 2.6 %
Less: Operating expenses and real estate taxes 282,005 265,189 16,816 6.3 % 22,212 20,490 1,722 8.4 %
NOI (excluding termination income) 2, 3 $ 447,890 $ 445,640 0.5 % $ 36,030 $ 36,267 (0.7) %
Rental revenue (excluding termination income) 2 $ 729,895 $ 710,829 2.7 % $ 58,242 $ 56,757 2.6 %
Less: Straight-line rent and fair value lease revenue 17,467 15,491 1,976 12.8 % 3,047 13,780 (10,733) (77.9) %
Add: Lease transaction costs that qualify as rent inducements 4 4,031 (4,604) 8,635 187.6 % 318 370 (52) (14.1) %
Subtotal $ 716,459 $ 690,734 25,725 3.7 % 55,513 43,347 12,166 28.1 %
Less: Operating expenses and real estate taxes 282,005 265,189 16,816 6.3 % 22,212 20,490 1,722 8.4 %
Add: Straight-line ground rent expense 5 591 576 15 2.6 % 142 145 (3) (2.1) %
NOI - cash (excluding termination income) 2, 3 $ 435,045 $ 426,121 2.1 % $ 33,443 $ 23,002 45.4 %
Partners’ share of Consolidated Joint Ventures (C) BXP’s Share 2, 6
Three Months Ended % Three Months Ended %
31-Mar-23 31-Mar-22 Change Change 31-Mar-23 31-Mar-22 Change Change
Rental Revenue 2 $ 79,243 $ 77,149 $ 709,955 $ 693,121
Less: Termination income 172 221 889 2,463
Rental revenue (excluding termination income) 2 79,071 76,928 2.8 % 709,066 690,658 2.7 %
Less: Operating expenses and real estate taxes 32,146 30,094 2,052 6.8 % 272,071 255,585 16,486 6.5 %
NOI (excluding termination income) 2, 3 $ 46,925 $ 46,834 0.2 % $ 436,995 $ 435,073 0.4 %
Rental revenue (excluding termination income) 2 $ 79,071 $ 76,928 2.8 % $ 709,066 $ 690,658 2.7 %
Less: Straight-line rent and fair value lease revenue 3,789 1,025 2,764 269.7 % 16,725 28,246 (11,521) (40.8) %
Add: Lease transaction costs that qualify as rent inducements 4 185 (2,443) 2,628 107.6 % 4,164 (1,791) 5,955 332.5 %
Subtotal 75,467 73,460 2,007 2.7 % 696,505 660,621 35,884 5.4 %
Less: Operating expenses and real estate taxes 32,146 30,094 2,052 6.8 % 272,071 255,585 16,486 6.5 %
Add: Straight-line ground rent expense 5 — — — — % 733 721 12 1.7 %
NOI - cash (excluding termination income) 2, 3 $ 43,321 $ 43,366 (0.1) % $ 425,167 $ 405,757 4.8 %

All values are in US Dollars.

___________________

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

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

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

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

5Excludes the straight-line impact of approximately $(190) and $168 for the three months ended March 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).

Q1 2023
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Mar-23 31-Dec-22
Maintenance capital expenditures $ 21,455 $ 25,813
Planned capital expenditures associated with acquisition properties 38 —
Repositioning capital expenditures 3,455 6,127
Hotel improvements, equipment upgrades and replacements 53 171
Subtotal 25,001 32,111
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 269 784
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,718 444
BXP’s share of repositioning capital expenditures from unconsolidated JVs — —
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 3,216 4,368
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs 301 1,688
BXP’s Share of Capital Expenditures 1 $ 23,471 $ 27,283

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Mar-23 31-Dec-22
Square feet 775,445 1,038,282
Tenant improvements and lease commissions PSF $ 72.81 $ 82.25

___________________

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

2Includes 100% of unconsolidated joint ventures.

Q1 2023
Acquisitions and dispositions

For the period from January 1, 2023 through March 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
Total Acquisitions — $ 17,000 $ — $ 17,000 — %

DISPOSITIONS

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

________________

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

Q1 2023
Construction in progress

as of March 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 3/31/2023 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
140 Kendrick - Building A Q3 2023 Q3 2023 Needham, MA 104,000 $ 19,133 $ 26,600 $ — $ — $ 7,467 100 % — % N/A
2100 Pennsylvania Avenue Q2 2022 Q3 2024 Washington, DC 480,000 334,638 375,900 — — 41,262 84 % 64 % $ 3,414
360 Park Avenue South (42% ownership) 6 Q1 2024 Q4 2025 New York, NY 450,000 206,950 248,000 92,774 89,677 37,953 — % — % N/A
Reston Next Office Phase II Q2 2024 Q2 2025 Reston, VA 90,000 29,578 61,000 — — 31,422 — % — % N/A
Platform16 Building A (55% ownership) 7 Q2 2025 Q4 2026 San Jose, CA 389,500 93,161 231,900 — — 138,739 — % — % N/A
Total Office Properties under Construction 1,513,500 683,460 943,400 92,774 89,677 256,843 34 % 20 % 3,414
Lab/Life Sciences
751 Gateway (49% ownership) Q2 2024 Q2 2024 South San Francisco, CA 231,000 95,636 127,600 — — 31,964 100 % — % N/A
103 CityPoint Q1 2024 Q3 2024 Waltham, MA 113,000 60,312 115,100 — — 54,788 — % — % N/A
180 CityPoint Q1 2024 Q4 2024 Waltham, MA 329,000 168,668 274,700 — — 106,032 43 % — % N/A
300 Binney Street Q1 2025 Q1 2025 Cambridge, MA 236,000 14,914 210,200 — — 195,286 100 % — % N/A
105 Carnegie Center Redevelopment Q4 2024 Q2 2025 Princeton, NJ 73,000 1,030 40,600 — — 39,570 — % — % N/A
651 Gateway (50% ownership) Q1 2024 Q4 2025 South San Francisco, CA 327,000 46,074 146,500 — — 100,426 7 % — % N/A
290 Binney Street Q2 2026 Q2 2026 Cambridge, MA 566,000 124,026 1,185,200 — — 1,061,174 100 % — % N/A
Total Lab/Life Sciences Properties under Construction 1,875,000 510,660 2,099,900 — — 1,589,240 64 % — % N/A
Residential
Reston Next Residential (508 units) (20% ownership) Q2 2024 Q2 2026 Reston, VA 417,000 11,509 47,700 28,000 5,045 13,236 — % — % N/A
Total Residential Property under Construction 417,000 11,509 47,700 28,000 5,045 13,236 — % — % N/A
Retail
760 Boylston Street (Redevelopment) Q2 2024 Q2 2024 Boston, MA 118,000 4,047 43,800 — — 39,753 100 % — % N/A
Reston Next Retail Q2 2025 Q4 2025 Reston, VA 33,000 18,495 26,600 — — 8,105 — % — % N/A
Total Retail Property under Construction 151,000 22,542 70,400 — — 47,858 78 % — N/A
Other
View Boston Observatory at The Prudential Center (Redevelopment) Q2 2023 N/A Boston, MA 59,000 161,945 182,300 — — 20,355 N/A — % N/A
Total Properties Under Construction 4,015,500 $ 1,390,116 $ 3,343,700 $ 120,774 $ 94,722 $ 1,927,532 52 % 8 7 % $ 3,414 Q1 2023
--- ---
Construction in progress (continued)

PROJECTS FULLY PLACED IN-SERVICE DURING 2023

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 3/31/2023 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5 (BXP’s share)
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
N/A — $ — $ — $ — $ — $ — — % N/A
Total Projects Fully Placed In-Service — $ — $ — $ — $ — $ — — % $ —

________________

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 April 21, 2023, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended March 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 54.

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

7Estimated total investment represents the costs to complete Building A, a 389,500 square foot building, and Building A’s proportionate share of land and garage costs. In conjunction with the construction of Building A, garage and site work will be completed for Phase II, which will support approximately 700,000 square feet of development in two office buildings, budgeted to be an incremental $118 million remaining to spend.

8Total percentage leased excludes Residential and Other.

Q1 2023
Land parcels and purchase options

as of March 31, 2023

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 1 2,229,000
San Jose, CA 2 2,199,000
New York, NY (25% ownership) 2,000,000
Princeton, NJ 1,650,000
San Francisco, CA 850,000
San Jose, CA (55% ownership) 698,000
Santa Clara, CA 632,000
Washington, DC (50% ownership) 520,000
South San Francisco, CA (50% ownership) 451,000
Springfield, VA 422,000
Waltham, MA 365,000
Herndon, VA (50% ownership) 3 350,000
El Segundo, CA (50% ownership) 275,000
Lexington, MA 2 259,000
Rockville, MD 2 252,000
Dulles, VA 150,000
Total 13,302,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 4 887,000
Boston, MA 1,300,000
Waltham, MA 5 1,200,000
Total 3,387,000

__________________

1Represents 100% of consolidated and unconsolidated projects.

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

3On January 31, 2023, The Company acquired a 50% share of available land that consists 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. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.

4In January 2023, the Company commenced the development of 290 Binney Street, an approximately 566,000 net rentable square feet laboratory/life sciences project in Cambridge, Massachusetts. 290 Binney Street is 100% pre-leased to AstraZeneca.

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

Q1 2023
Leasing activity

for the three months ended March 31, 2023

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 5,610,777
Less:
Property dispositions/properties taken out of service 1 333,277
Add:
Leases expiring or terminated during the period 1,067,880
Total space available for lease 6,345,380
1st generation leases —
2nd generation leases with new clients 432,003
2nd generation lease renewals 343,442
Total space leased 775,445
Vacant space available for lease at the end of the period 5,569,935
Net (increase)/decrease in available space 40,842
Second generation leasing information: 2
Leases commencing during the period (SF) 775,445
Weighted average lease term (months) 90
Weighted average free rent period (days) 175
Total transaction costs per square foot 3 72.81
Increase (decrease) in gross rents 4 0.60
Increase (decrease) in net rents 5 0.81

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 4, 6 net 5, 6
Boston — 289,565 289,565 20.53 % 36.22 % 182,039
Los Angeles — 55,042 55,042 11.73 % 19.18 % 25,910
New York — 249,331 249,331 (5.04) % (8.63) % 120,109
San Francisco — 61,348 61,348 5.09 % 6.38 % 83,684
Seattle — 2,214 2,214 10.79 % 16.32 % —
Washington, DC — 117,945 117,945 (34.11) % (46.58) % 248,738
Total / Weighted Average — 775,445 775,445 0.60 % 0.81 % 660,480

_____________

1Total vacant square feet of properties taken out of service in Q1 2023 consists of 195,191 at 300 Binney Street, 55,852 at 420 Bedford Street, 57,045 at 430 Bedford Street and 25,189 at 2098 Gaither Road.

2Second generation leases are defined as leases for space that has previously been leased. Of the 775,445 square feet of second generation leases that commenced in Q1 2023, leases for 588,547 square feet were signed in prior periods.

3Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.

4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 505,482 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the client is not expected to occupy the space on a long-term basis.

5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 505,482 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.

6Includes the renewal of a 68,950 square foot theater client. Excluding this renewal, the increase/(decrease) in second generation gross and net rent is (6.17)% and (8.82)% for Washington, DC and 3.87% and 6.37% for the total portfolio, respectively.

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 186,898.

Q1 2023
Portfolio overview

for the three months ended March 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 14,563,494 968,604 550,114 330,000 16,412,212
Los Angeles 2,186,700 126,377 — — 2,313,077
New York 12,107,184 486,390 — — 12,593,574
San Francisco 6,997,935 356,406 318,171 — 7,672,512
Seattle 1,507,450 26,472 — — 1,533,922
Washington, DC 8,780,164 664,676 493,241 — 9,938,081
Total 46,142,927 2,628,925 1,361,526 330,000 50,463,378
% of Total 91.44 % 5.21 % 2.70 % 0.65 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail Residential Hotel 3 Total
Consolidated $ 716,948 $ 52,910 $ 11,126 $ 8,001 $ 788,985
Less:
Partners’ share from consolidated joint ventures 4 69,797 9,446 — — 79,243
Add:
BXP’s share from unconsolidated joint ventures 5 59,686 2,943 2,631 — 65,260
BXP’s Share of Rental revenue 1 $ 706,837 $ 46,407 $ 13,757 $ 8,001 $ 775,002
% of Total 91.20 % 5.99 % 1.78 % 1.03 % 100.00 %

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

CBD Suburban Total
Boston 28.32 % 7.20 % 35.52 %
Los Angeles 2.73 % — % 2.73 %
New York 23.18 % 2.03 % 25.21 %
San Francisco 17.10 % 2.53 % 19.63 %
Seattle 2.72 % — % 2.72 %
Washington, DC 3.86 % 10.33 % 14.19 %
Total 77.91 % 22.09 % 100.00 %

_____________

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

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

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

4See page 61 for additional information.

5See page 63 for additional information.

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

Q1 2023
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel
Three Months Ended Three Months Ended
31-Mar-23 31-Dec-22 31-Mar-23 31-Dec-22
Rental Revenue 2 $ 11,726 $ 12,963 $ 8,101 $ 11,087
Less: Operating expenses and real estate taxes 5,463 6,309 6,671 7,646
Net Operating Income (NOI) 2 6,263 6,654 1,430 3,441
Add: BXP’s share of NOI from unconsolidated joint ventures 1,751 1,648 N/A N/A
BXP’s Share of NOI 2 $ 8,014 $ 8,302 $ 1,430 $ 3,441
Rental Revenue 2 $ 11,726 $ 12,963 $ 8,101 $ 11,087
Less: Straight line rent and fair value lease revenue 15 11 (2) (2)
Add: Lease transaction costs that qualify as rent inducements — — — —
Subtotal 11,711 12,952 8,103 11,089
Less: Operating expenses and real estate taxes 5,463 6,309 6,671 7,646
NOI - cash basis 2 6,248 6,643 1,432 3,443
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 1,751 1,648 N/A N/A
BXP’s Share of NOI - cash basis 2 $ 7,999 $ 8,291 $ 1,432 $ 3,443

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-23 31-Mar-22
BOSTON
Hub50House (50% ownership), Boston, MA 2 440
Average Monthly Rental Rate $ 4,168 $ 3,890 7.15 %
Average Rental Rate Per Occupied Square Foot $ 5.73 $ 5.42 5.72 %
Average Physical Occupancy 94.24 % 94.09 % 0.16 %
Average Economic Occupancy 94.04 % 92.20 % 2.00 %
Proto Kendall Square, Cambridge, MA 2, 3 280
Average Monthly Rental Rate $ 3,002 $ 2,743 9.44 %
Average Rental Rate Per Occupied Square Foot $ 5.52 $ 5.04 9.52 %
Average Physical Occupancy 95.36 % 93.57 % 1.91 %
Average Economic Occupancy 94.84 % 93.14 % 1.83 %
The Lofts at Atlantic Wharf, Boston, MA 2, 3 86
Average Monthly Rental Rate $ 4,428 $ 3,933 12.59 %
Average Rental Rate Per Occupied Square Foot $ 4.91 $ 4.36 12.61 %
Average Physical Occupancy 95.35 % 96.12 % (0.80) %
Average Economic Occupancy 95.37 % 95.61 % (0.25) %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 3 N/A
Average Occupancy 61.30 % 40.40 % 51.73 %
Average Daily Rate $ 261.52 $ 266.10 (1.72) %
Revenue Per Available Room $ 160.41 $ 91.38 75.54 %
SAN FRANCISCO
The Skylyne, Oakland, CA 2, 3 402
Average Monthly Rental Rate $ 3,445 $ 3,342 3.08 %
Average Rental Rate Per Occupied Square Foot $ 4.38 $ 4.03 8.68 %
Average Physical Occupancy 91.46 % 71.48 % 27.95 %
Average Economic Occupancy 89.34 % 68.59 % 30.25 %
Q1 2023
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-23 31-Mar-22
WASHINGTON, DC
Signature at Reston, Reston, VA 2, 3 508
Average Monthly Rental Rate $ 2,677 $ 2,580 3.76 %
Average Rental Rate Per Occupied Square Foot $ 2.77 $ 2.66 4.14 %
Average Physical Occupancy 93.70 % 94.16 % (0.49) %
Average Economic Occupancy 93.12 % 93.50 % (0.41) %
Total In-Service Residential Units 1,716

_____________

1Includes retail space.

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

3Excludes retail space.

Q1 2023
In-service property listing as of March 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 1,768,496 93.4 % 96.1 % $ 79.17
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,821 86.4 % 94.7 % 75.05
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,197,798 93.7 % 94.1 % 69.71
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,446 95.2 % 100.0 % 75.52
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,819 99.8 % 99.8 % 87.81
100 Causeway Street (50% ownership) 4 CBD Boston MA 1 633,819 94.6 % 94.6 % 77.93
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 99.2 % 99.8 % 59.57
Prudential Center (retail shops) 5 CBD Boston MA — 479,498 95.9 % 97.2 % 98.99
The Hub on Causeway - Podium (50% ownership) 4 CBD Boston MA 1 382,497 94.0 % 94.0 % 61.85
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 100.0 % 81.58
Star Market at the Prudential Center 5 CBD Boston MA 1 57,236 100.0 % 100.0 % 61.64
Subtotal 10 8,282,226 94.2 % 96.6 % $ 76.82
145 Broadway East Cambridge MA 1 490,086 99.6 % 99.6 % $ 90.01
325 Main Street 6 East Cambridge MA 1 414,565 91.4 % 91.4 % 109.87
125 Broadway 6 East Cambridge MA 1 271,000 100.0 % 100.0 % 137.87
355 Main Street East Cambridge MA 1 259,640 99.3 % 99.3 % 80.99
90 Broadway East Cambridge MA 1 223,771 98.1 % 98.1 % 77.22
255 Main Street East Cambridge MA 1 215,394 97.5 % 97.5 % 102.20
150 Broadway East Cambridge MA 1 177,226 100.0 % 100.0 % 86.86
105 Broadway East Cambridge MA 1 152,664 100.0 % 100.0 % 73.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 100.0 % 49.70
University Place Mid-Cambridge MA 1 195,282 100.0 % 100.0 % 56.02
Subtotal 10 2,466,990 98.0 % 98.0 % $ 92.31
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 997,574 56.5 % 57.6 % $ 48.93
Reservoir Place Route 128 Mass Turnpike MA 1 527,029 57.3 % 57.3 % 49.63
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 100.0 % 58.00
140 Kendrick Street Route 128 Mass Turnpike MA 2 306,323 85.9 % 85.9 % 51.97
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 92.1 % 92.1 % 44.02
230 CityPoint Route 128 Mass Turnpike MA 1 296,720 97.4 % 97.4 % 46.86
200 West Street Route 128 Mass Turnpike MA 1 273,365 83.9 % 97.7 % 75.85
880 Winter Street 6 Route 128 Mass Turnpike MA 1 243,618 85.4 % 97.2 % 99.37
10 CityPoint Route 128 Mass Turnpike MA 1 236,570 95.8 % 95.8 % 56.40
20 CityPoint Route 128 Mass Turnpike MA 1 211,476 98.9 % 98.9 % 56.05
77 CityPoint Route 128 Mass Turnpike MA 1 209,711 96.1 % 97.8 % 54.40
890 Winter Street Route 128 Mass Turnpike MA 1 179,312 54.0 % 54.0 % 49.00
153 & 211 Second Avenue Route 128 Mass Turnpike MA 2 136,882 100.0 % 100.0 % 80.06
1265 Main Street (50% ownership) 4 Route 128 Mass Turnpike MA 1 120,681 100.0 % 100.0 % 52.93
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 100.0 % 53.10
The Point 5 Route 128 Mass Turnpike MA 1 16,300 100.0 % 100.0 % 60.37
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 100.0 % 73.06
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 100.0 % 28.87
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 100.0 % 66.02
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 100.0 % 47.83
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 100.0 % 54.66
Subtotal 26 4,754,479 80.7 % 82.4 % $ 56.81
Boston Office Total: 46 15,503,695 90.7 % 92.5 % $ 74.01
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 Q1 2023
--- ---
In-service property listing (continued) as of March 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: 50 16,412,212
LOS ANGELES
Office
Colorado Center (50% ownership) 4 West Los Angeles CA 6 1,131,511 87.7 % 87.7 % $ 74.37
Santa Monica Business Park (55% ownership) 4 West Los Angeles CA 14 1,107,162 84.1 % 84.5 % 70.49
Santa Monica Business Park Retail (55% ownership) 4, 5 West Los Angeles CA 7 74,404 90.1 % 90.1 % 71.13
Subtotal 27 2,313,077 86.0 % 86.2 % $ 72.45
Los Angeles Total: 27 2,313,077 86.0 % 86.2 % $ 72.45
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) Plaza District NY 1 1,965,003 89.7 % 93.0 % $ 165.25
601 Lexington Avenue (55% ownership) Park Avenue NY 1 1,670,790 98.9 % 99.4 % 95.42
399 Park Avenue Park Avenue NY 1 1,577,544 99.2 % 100.0 % 98.87
599 Lexington Avenue Park Avenue NY 1 1,106,351 85.4 % 90.1 % 89.02
Times Square Tower (55% ownership) Times Square NY 1 1,236,995 84.7 % 96.5 % 81.06
250 West 55th Street Times Square / West Side NY 1 966,976 99.4 % 100.0 % 96.54
200 Fifth Avenue (26.69% ownership) 4, 6 Flatiron District NY 1 854,737 92.3 % 92.3 % 98.39
Dock 72 (50% ownership) 4 Brooklyn NY 1 668,625 25.5 % 42.4 % 49.10
510 Madison Avenue Fifth/Madison Avenue NY 1 355,089 97.1 % 97.1 % 134.06
Subtotal 9 10,402,110 88.8 % 92.7 % $ 108.01
510 Carnegie Center Princeton NJ 1 234,160 33.5 % 33.5 % $ 41.33
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 100.0 % 35.46
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 79.2 % 37.75
212 Carnegie Center Princeton NJ 1 148,942 40.6 % 40.6 % 39.15
214 Carnegie Center Princeton NJ 1 146,799 67.4 % 69.5 % 36.86
506 Carnegie Center Princeton NJ 1 139,050 68.2 % 82.1 % 40.19
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 % 40.74
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 100.0 % 41.26
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 100.0 % 35.47
101 Carnegie Center Princeton NJ 1 121,619 100.0 % 100.0 % 38.87
502 Carnegie Center Princeton NJ 1 121,460 96.2 % 96.2 % 39.91
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 100.0 % 42.41
104 Carnegie Center Princeton NJ 1 102,930 71.4 % 77.0 % 33.09
103 Carnegie Center Princeton NJ 1 96,331 77.7 % 84.1 % 36.63
302 Carnegie Center Princeton NJ 1 64,926 100.0 % 100.0 % 36.06
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 100.0 % 37.32
201 Carnegie Center Princeton NJ — 6,500 100.0 % 100.0 % 36.59
Subtotal 17 2,191,464 79.7 % 81.3 % $ 38.66
New York Total: 26 12,593,574 87.2 % 90.7 % $ 97.00
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % 100.0 % $ 110.97
Embarcadero Center Four CBD San Francisco CA 1 941,677 94.5 % 94.8 % 93.52
Embarcadero Center One CBD San Francisco CA 1 837,306 68.6 % 74.7 % 88.93
Embarcadero Center Two CBD San Francisco CA 1 802,879 87.2 % 87.3 % 90.13
Embarcadero Center Three CBD San Francisco CA 1 787,377 81.4 % 81.4 % 91.23 Q1 2023
--- ---
In-service property listing (continued) as of March 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 % 74.29
535 Mission Street CBD San Francisco CA 1 307,235 87.6 % 90.8 % 96.81
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 100.0 % 105.99
Subtotal 9 5,648,029 89.2 % 90.4 % $ 95.44
Gateway Commons (50% ownership) 4 South San Francisco CA 5 788,178 86.8 % 86.8 % $ 65.43
Mountain View Research Park Mountain View CA 15 542,264 79.2 % 79.2 % 70.62
2440 West El Camino Real Mountain View CA 1 142,789 100.0 % 100.0 % 92.32
453 Ravendale Drive Mountain View CA 1 29,620 100.0 % 100.0 % 51.82
North First Business Park 7 San Jose CA 5 190,636 87.6 % 87.6 % 24.27
Subtotal 27 1,693,487 85.8 % 85.8 % $ 64.63
San Francisco Office Total: 36 7,341,516 88.4 % 89.3 % $ 88.52
Residential
The Skylyne (402 units) CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 37 7,672,512
SEATTLE
Office
Safeco Plaza (33.67% ownership) 4 CBD Seattle WA 1 778,934 82.8 % 88.0 % $ 44.54
Madison Centre 6 CBD Seattle WA 1 754,988 93.1 % 93.1 % 62.49
Subtotal 2 1,533,922 87.9 % 90.5 % $ 53.89
Seattle Total: 2 1,533,922 87.9 % 90.5 % $ 53.89
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 4 East End Washington DC 1 657,580 85.7 % 90.1 % $ 72.78
901 New York Avenue (25% ownership) 4 East End Washington DC 1 544,256 83.1 % 83.1 % 66.61
Market Square North (50% ownership) 4 East End Washington DC 1 418,539 74.6 % 74.6 % 71.37
2200 Pennsylvania Avenue CBD Washington DC 1 459,745 93.6 % 94.9 % 97.78
1330 Connecticut Avenue CBD Washington DC 1 253,579 82.5 % 87.4 % 71.64
Sumner Square CBD Washington DC 1 209,707 98.0 % 98.0 % 55.57
500 North Capitol Street, N.W. (30% ownership) 4 Capitol Hill Washington DC 1 230,900 100.0 % 100.0 % 82.33
Capital Gallery Southwest Washington DC 1 176,809 92.7 % 92.7 % 54.99
Subtotal 8 2,951,115 87.0 % 88.6 % $ 73.75
Reston Next 6 Reston VA 2 1,063,236 69.0 % 90.6 % $ 58.87
South of Market Reston VA 3 623,250 99.6 % 99.6 % 54.97
Fountain Square Reston VA 2 524,580 83.7 % 85.0 % 53.01
One Freedom Square Reston VA 1 427,956 87.0 % 87.0 % 52.28
Two Freedom Square Reston VA 1 423,222 100.0 % 100.0 % 51.02
One and Two Discovery Square Reston VA 2 366,989 99.0 % 99.0 % 49.86
One Reston Overlook Reston VA 1 319,519 89.7 % 89.7 % 47.08
17Fifty Presidents Street Reston VA 1 275,809 100.0 % 100.0 % 70.30
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 % 65.17
Fountain Square Retail 5 Reston VA 1 198,172 80.3 % 87.0 % 51.98
Two Reston Overlook Reston VA 1 134,615 100.0 % 100.0 % 52.31
Avant Retail 5, 6 Reston VA 1 26,179 100.0 % 100.0 % 57.91
Subtotal 19 4,904,014 88.8 % 93.9 % $ 54.94
7750 Wisconsin Avenue (50% ownership) 4 Bethesda/Chevy Chase MD 1 735,573 100.0 % 100.0 % $ 38.00
Wisconsin Place Office Montgomery County MD 1 299,428 88.9 % 88.9 % 58.42 Q1 2023
--- ---
In-service property listing (continued) as of March 31, 2023
--- --- --- --- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Occupied % 1 Leased % 2 Annualized Rental Obligations Per Occupied SF 3
WASHINGTON, DC (continued)
Shady Grove Innovation District 8 North Rockville MD 2 132,474 82.3 % 82.3 % 16.89
Kingstowne Two Springfield VA 1 156,005 83.7 % 87.2 % 39.87
Kingstowne One Springfield VA 1 153,401 33.8 % 44.1 % 40.58
Kingstowne Retail 5 Springfield VA 1 88,288 96.8 % 96.8 % 30.58
Subtotal 7 1,565,169 88.1 % 89.5 % $ 40.09
Washington, DC Office Total: 34 9,420,298 88.1 % 91.5 % $ 58.25
Residential
Signature at Reston (508 units) Reston VA 1 517,783
Washington, DC Residential Total: 1 517,783
Washington, DC Total: 35 9,938,081
Total In-Service Properties: 177 50,463,378 88.6 % 9 91.0 % 9 $ 78.31 9
BXP’s Share of Total In-Service Properties: 3 89.0 % 9 91.2 % 9

_____________

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

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

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

4This is an unconsolidated joint venture property.

5This is a retail property.

6Not included in the Same Property analysis.

7Property held for redevelopment.

8Excludes 2098 Gaither Road. The Company is no longer actively leasing 2098 Gaither Road and intends to redevelop the property. 2098 Gaither Road consists of approximately 50,000 net rentable square feet.

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

Q1 2023
Top 20 clients listing and portfolio client diversification

as of March 31, 2023

TOP 20 CLIENTS

No. Client BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 Salesforce 3.43 % 8.8
2 Google 2.81 % 14.3
3 Biogen 2.61 % 4.1
4 Akamai Technologies 2.11 % 11.6
5 WeWork 1.54 % 8.3
6 Fannie Mae 1.50 % 14.4
7 Kirkland & Ellis 1.46 % 14.6
8 Ropes & Gray 1.43 % 7.1
9 Microsoft 1.28 % 9.2
10 Millennium Management 1.24 % 7.8
11 Arnold & Porter Kaye Scholer 1.15 % 8.8
12 Weil Gotshal & Manges 1.11 % 11.1
13 Shearman & Sterling 1.06 % 17.3
14 Wellington Management 1.03 % 12.2
15 Bank of America 0.90 % 12.0
16 Morrison & Foerster 0.87 % 7.5
17 Snap 0.85 % 3.0
18 Aramis (Estee Lauder) 0.83 % 17.0
19 O'Melveny & Myers 0.83 % 1.7
20 Leidos 0.83 % 10.1
BXP’s Share of Annualized Rental Obligations 28.87 %
BXP’s Share of Square Feet 1 22.93 %
Weighted Average Remaining Lease Term (years) 10.0

NOTABLE SIGNED DEALS 3

Client Property Square Feet
AstraZeneca 290 Binney Street 4 566,000
Genentech 751 Gateway 229,000
The Broad Institute 300 Binney Street 225,000
Volkswagen Group of America Reston Next 200,000

CLIENT DIVERSIFICATION 2

chart-f8b1103646984a48a72.jpg

_____________

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

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

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

4290 Binney Street is a 566,000 square foot lab development in Cambridge, MA that commenced development in the first quarter of 2023.

Q1 2023
Occupancy by location

as of March 31, 2023

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

CBD Suburban Total
Location 31-Mar-23 31-Dec-22 31-Mar-23 31-Dec-22 31-Mar-23 31-Dec-22
Boston 95.0 % 94.2 % 80.7 % 81.2 % 90.7 % 90.2 %
Los Angeles 86.0 % 88.3 % — % — % 86.0 % 88.3 %
New York 88.8 % 88.3 % 79.7 % 79.7 % 87.2 % 86.8 %
San Francisco 89.2 % 89.1 % 85.8 % 86.7 % 88.4 % 88.5 %
Seattle 87.9 % 88.3 % — % — % 87.9 % 88.3 %
Washington, DC 87.0 % 88.3 % 88.6 % 88.9 % 88.1 % 88.7 %
Total Portfolio 90.5 % 90.3 % 84.5 % 84.9 % 88.6 % 88.6 %

chart-39d3b93c7b774131ab0.jpg

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

CBD Suburban Total
Location 31-Mar-23 31-Mar-22 31-Mar-23 31-Mar-22 31-Mar-23 31-Mar-22
Boston 95.1 % 95.8 % 80.5 % 86.4 % 90.5 % 92.9 %
Los Angeles 86.0 % 88.4 % — % — % 86.0 % 88.4 %
New York 88.5 % 89.7 % 79.7 % 79.1 % 86.8 % 87.7 %
San Francisco 89.2 % 91.2 % 85.8 % 76.4 % 88.4 % 87.8 %
Seattle 82.8 % 87.7 % — % — % 82.8 % 87.7 %
Washington, DC 87.0 % 82.2 % 92.4 % 93.1 % 90.5 % 89.2 %
Total Portfolio 90.3 % 91.1 % 85.7 % 86.6 % 88.9 % 89.7 %

chart-272e11c737a8419ea86.jpg

_____________

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

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

Q1 2023
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 3,300,000
Unsecured Line of Credit —
Unsecured Term Loan 1,200,000
Unsecured Senior Notes, at face value 10,300,000
Outstanding Principal 14,800,000
Discount on Unsecured Senior Notes (13,339)
Deferred Financing Costs, Net (77,225)
Consolidated Debt $ 14,709,436

MORTGAGE NOTES PAYABLE

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

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% $ 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
5 Year Unsecured Senior Notes (“green bonds”) December 1, 2027 6.92% 6.75% 750,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
12 Year Unsecured Senior Notes (“green bonds”) October 1, 2033 2.52% 2.45% 850,000
$ 10,300,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,830 156,830 $ 8,487,640
Common Operating Partnership Units 18,659 18,659 1,009,825
Total Equity 175,489 $ 9,497,465
Consolidated Debt (A) $ 14,709,436
Add: BXP’s share of unconsolidated joint venture debt 3 1,604,852
Less: Partners’ share of consolidated debt 4 1,358,881
BXP’s Share of Debt 5 (B) $ 14,955,407
Consolidated Market Capitalization (C) $ 24,206,901
BXP’s Share of Market Capitalization 5 (D) $ 24,452,872
Consolidated Debt/Consolidated Market Capitalization (A÷C) 60.77 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 61.16 %

_____________

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

2Values are based on the March 31, 2023 closing price of $54.12 per share of BXP common stock.

3Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 33.

4Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 31.

5See the Definitions and Reconciliations sections of this Supplemental package starting on page 54.

Q1 2023
Debt analysis 1

as of March 31, 2023

(dollars in thousands)

chart-7520248f767b46da99f.jpg

UNSECURED CREDIT FACILITY - MATURES JUNE 15, 2026

Facility Outstanding at March 31, 2023 Letters of Credit Remaining Capacity at March 31, 2023
Unsecured Line of Credit $ 1,500,000 $ — $ 6,425 $ 1,493,575

UNSECURED TERM LOAN - MATURES MAY 16, 2024 2

Facility Outstanding at March 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 3 Maturity (years)
Unsecured Debt 77.75 % 3.80 % 3.91 % 4.8
Secured Debt 22.25 % 3.24 % 3.42 % 5.6
Consolidated Debt 100.00 % 3.67 % 3.81 % 5.0

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 3 Maturity (years)
Floating Rate Debt 8.12 % 5.49 % 5.87 % 1.1
Fixed Rate Debt 91.88 % 3.51 % 3.62 % 5.4
Consolidated Debt 100.00 % 3.67 % 3.81 % 5.0

_____________

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

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

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

Q1 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 March 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% 47.6 % 44.2 %
Secured Debt/Total Assets Less than 50% 14.8 % 13.7 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.25 3.25
Unencumbered Assets/ Unsecured Debt Greater than 150% 233.4 % 254.8 %

_____________

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

Q1 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-Mar-23 31-Dec-22
Net income attributable to Boston Properties, Inc. $ 77,890 $ 121,790
Add:
Noncontrolling interest - common units of the Operating Partnership 9,078 13,972
Noncontrolling interest in property partnerships 18,660 19,961
Net income 105,628 155,723
Add:
Interest expense 134,207 119,923
Depreciation and amortization expense 208,734 198,330
Less:
Gains on sales of real estate — 55,726
Gain on sales-type lease — 10,058
Loss from unconsolidated joint ventures (7,569) (58,451)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 41,777 38,315
EBITDAre 1 497,915 504,958
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 48,132 49,350
BXP’s Share of EBITDAre 1 (A) 449,783 455,608
Add:
Stock-based compensation expense 25,935 7,496
BXP’s Share of straight-line ground rent expense adjustment 1 543 404
BXP’s Share of lease transaction costs that qualify as rent inducements 1 5,519 11,711
Less:
BXP’s Share of straight-line rent 1 23,863 31,029
BXP’s Share of fair value lease revenue 1 4,579 3,841
Amortization and accretion related to sales type lease 226 —
BXP’s Share of EBITDAre – cash 1 $ 453,112 $ 440,349
BXP’s Share of EBITDAre (Annualized) 4 (A x 4) $ 1,799,132 $ 1,822,432

Reconciliation of BXP’s Share of Net Debt 1

31-Mar-23 31-Dec-22
Consolidated debt $ 14,709,436 $ 14,240,336
Add:
Special dividend payable — —
Less:
Cash and cash equivalents 918,952 690,333
Cash held in escrow for 1031 exchange — —
Net debt 1 13,790,484 13,550,003
Add:
BXP’s share of unconsolidated joint venture debt 2 1,604,852 1,600,367
Partners’ share of cash and cash equivalents from consolidated joint ventures 99,873 111,116
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 112,426 106,389
Partners’ share of consolidated joint venture debt 3 1,358,881 1,358,395
BXP’s share of related party note receivable 20,000 20,000
BXP’s Share of Net Debt 1 (B) $ 14,003,902 $ 13,776,702
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 7.78 7.56

_____________

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

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended March 31, 2023, see pages 33 and 62.

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

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

Q1 2023
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Mar-23 31-Dec-22
BXP’s Share of interest expense 1 $ 146,147 $ 129,404
Less:
BXP’s Share of hedge amortization, net of costs 1 1,750 1,751
BXP’s share of fair value interest adjustment 1 499 250
BXP’s Share of amortization of financing costs 1 5,216 3,978
Adjusted interest expense excluding capitalized interest (A) 138,682 123,425
Add:
BXP’s Share of capitalized interest 1 12,189 13,404
Adjusted interest expense including capitalized interest (B) $ 150,871 $ 136,829
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 453,112 $ 440,349
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.27 3.57
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.00 3.22

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Mar-23 31-Dec-22
BXP’s Share of interest expense 1 $ 146,147 $ 129,404
Less:
BXP’s Share of hedge amortization, net of costs 1 1,750 1,751
BXP’s share of fair value interest adjustment 1 499 250
BXP’s Share of amortization of financing costs 1 5,216 3,978
Add:
BXP’s Share of capitalized interest 1 12,189 13,404
BXP’s Share of maintenance capital expenditures 1 18,508 22,229
Hotel improvements, equipment upgrades and replacements 53 171
Total Fixed Charges (A) $ 169,432 $ 159,229
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 453,112 $ 440,349
Fixed Charge Coverage Ratio (B÷A) 2.67 2.77

_____________

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

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

Q1 2023
Consolidated joint ventures

d

as of March 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
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,215,252 $ 2,259,144 $ 5,474,396
Cash and cash equivalents 108,369 125,612 233,981
Other assets 294,541 380,395 674,936
Total assets $ 3,618,162 $ 2,765,151 $ 6,383,313
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,285,359 $ 988,169 $ 3,273,528
Other liabilities 93,174 90,528 183,702
Total liabilities 2,378,533 1,078,697 3,457,230
Equity:
Boston Properties, Inc. 745,403 628,482 1,373,885
Noncontrolling interests 494,226 1,057,972 1,552,198 2
Total equity 1,239,629 1,686,454 2,926,083
Total liabilities and equity $ 3,618,162 $ 2,765,151 $ 6,383,313
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 43,348 $ 56,525 $ 99,873
Partners’ share of consolidated debt 3 $ 914,205 4 $ 444,676 $ 1,358,881

_____________

1Certain balances contain amounts that eliminate in consolidation.

2Amount excludes preferred shareholders’ capital of approximately $0.1 million.

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

4Amount adjusted for basis differentials.

Q1 2023
Consolidated joint ventures (continued)

for the three months ended March 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
767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,036 $ 99,273 $ 174,309
Straight-line rent 1,140 7,096 8,236
Fair value lease revenue 327 21 348
Termination income — 383 383
Total lease revenue 76,503 106,773 183,276
Parking and other — 1,321 1,321
Total rental revenue 2 76,503 108,094 184,597
Expenses
Operating 31,431 39,683 71,114
Net Operating Income (NOI) 45,072 68,411 113,483
Other income (expense)
Development and management services revenue — 456 456
Interest and other income 968 1,113 2,081
Interest expense (20,882) (7,583) (28,465)
Depreciation and amortization expense (16,593) (23,230) (39,823)
General and administrative expense (32) (39) (71)
Total other income (expense) (36,539) (29,283) (65,822)
Net income $ 8,533 $ 39,128 $ 47,661

FUNDS FROM OPERATIONS (FFO)

BXP’s nominal ownership percentage 60% 55%
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of FFO (The GM Building) Atlantic Wharf Office Joint Ventures
Net income $ 8,533 $ 39,128 $ 47,661
Add: Depreciation and amortization expense 16,593 23,230 39,823
Entity FFO $ 25,126 $ 62,358 $ 87,484
Noncontrolling interest in property partnerships (Partners’ NCI) 3 $ 2,403 $ 16,257 $ 18,660
Partners’ share of depreciation and amortization expense after BXP’s basis differential 3 6,983 10,728 17,711
Partners’ share FFO 3 $ 9,386 $ 26,985 $ 36,371
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 6,130 $ 22,871 $ 29,001
Depreciation and amortization expense - BXP’s basis difference 51 395 446
BXP’s share of depreciation and amortization expense 9,559 12,107 21,666
BXP’s share of FFO $ 15,740 $ 35,373 $ 51,113

_____________

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

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

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

Q1 2023
Unconsolidated joint ventures 1

as of March 31, 2023

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Mezzanine/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 59,811 168,621 September 5, 2023 6.03 % 6.24 %
Podium 50.00 % 45,622 87,097 September 6, 2023 6.89 % 7.06 %
Hub50House 50.00 % 42,046 91,871 June 17, 2032 4.43 % 4.51 %
Hotel Air Rights 50.00 % 12,582 — — — % — %
1265 Main Street 50.00 % 3,605 17,557 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 161,786 164,327 July 19, 2025 4.06 % 4.23 %
Colorado Center 50.00 % 234,635 274,610 August 9, 2027 3.56 % 3.59 %
Beach Cities Media Center 50.00 % 26,987 — — — % — %
New York
Dock 72 50.00 % (15,362) 98,555 December 18, 2025 7.13 % 7.39 %
360 Park Avenue South 3 42.21 % 116,828 89,047 December 14, 2024 7.11 % 7.56 %
200 Fifth Avenue 26.69 % 114,919 149,196 November 24, 2028 4.34 % 5.60 %
3 Hudson Boulevard 4 25.00 % 115,966 19,996 July 13, 2023 8.06 % 8.14 %
San Francisco
Platform 16 55.00 % 171,010 — — — % — %
Gateway Commons 50.00 % 337,535 — — — % — %
751 Gateway 49.00 % 85,430 — — — % — %
Seattle
Safeco Plaza 5 33.67 % 68,196 83,784 September 1, 2026 4.82 % 4.96 %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 6 50.00 % 51,549 125,713 April 26, 2023 5.77 % 6.32 %
1001 6th Street 50.00 % 43,661 — — — % — %
13100 & 13150 Worldgate Drive 50.00 % 17,295 — — — % — %
Market Square North 50.00 % (6,097) 62,202 November 10, 2025 6.92 % 7.10 %
Wisconsin Place Parking Facility 33.33 % 31,723 — — — % — %
500 North Capitol Street, N.W. 30.00 % (8,941) 31,497 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,311) 52,682 January 5, 2025 3.61 % 3.69 %
Reston Next Residential 7 20.00 % 11,431 4,765 May 13, 2026 6.55 % 6.87 %
Metropolitan Square 5 20.00 % (38,782) 83,332 April 9, 2024 7.25 % 8.03 %
1,671,124
Investments with deficit balances reflected within Other Liabilities 81,493
Investments in Unconsolidated Joint Ventures $ 1,752,617
Mortgage/Mezzanine/Construction Loans Payable, Net $ 1,604,852

chart-bd127e0e102e47e18c9.jpg

Q1 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 51.29 % 6.45 % 6.78 % 1.3
Fixed Rate Debt 48.71 % 3.95 % 4.25 % 7.5
Total Debt 100.00 % 5.23 % 5.55 % 4.3

_____________

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

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

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

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

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

6 On April 21, 2023, the joint venture extended the loan maturity to April 26, 2024.

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

Q1 2023
Unconsolidated joint ventures (continued)

for the three months ended March 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 $ 22,370 $ 35,225 $ 22,296 $ 11,399 $ 6,886 $ 33,590 $ 131,766
Straight-line rent 1,568 (333) 249 468 545 3,819 6,316
Fair value lease revenue — 229 1,538 23 1,134 — 2,924
Termination income — — 1,358 — — 116 1,474
Total lease revenue 23,938 35,121 25,441 11,890 8,565 37,525 142,480
Parking and other 10 3,652 262 165 481 2,013 6,583
Total rental revenue 3 23,948 38,773 25,703 12,055 9,046 39,538 149,063
Expenses
Operating 6,796 14,207 13,762 4,717 3,566 14,046 57,094
Net operating income/(loss) 17,152 24,566 11,941 7,338 5,480 25,492 91,969
Other income/(expense)
Development and management services revenue — — 749 — — 118 867
Interest and other income 398 371 57 (7) 70 604 1,493
Interest expense (10,660) (11,794) (12,404) — (4,405) (17,987) (57,250)
Unrealized loss on derivative instruments — — (10,610) — — — (10,610)
Transaction costs (9) (61) — — — (4) (74)
Depreciation and amortization expense (8,435) (12,997) (8,301) (4,780) (5,156) (10,309) (49,978)
General and administrative expense (9) (3) (81) (1) (5) (13) (112)
Total other income/(expense) (18,715) (24,484) (30,590) (4,788) (9,496) (27,591) (115,664)
Net income/(loss) $ (1,563) $ 82 $ (18,649) $ 2,550 $ (4,016) $ (2,099) $ (23,695)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (782) $ (103) $ (6,237) $ 1,281 $ (1,351) $ 290 4 $ (6,902)
Basis differential
Straight-line rent $ — $ 91 5 $ 223 $ 7 5 $ — $ — $ 321
Fair value lease revenue — 301 5 111 (219) 5 — — 193
Termination income — — 95 — — — 95
Fair value interest adjustment — — (499) — — — (499)
Amortization of financing costs — — 113 — — — 113
Unrealized loss on derivative instruments — — 2,832 — — — 2,832
Depreciation and amortization expense (5) (1,081) 5 (2,041) (492) 5 8 (111) (3,722)
Total basis differential 6 (5) (689) 5 834 (704) 5 8 (111) (667)
Income/(loss) from unconsolidated joint ventures (787) (792) (5,403) 577 (1,343) 179 4 (7,569)
Add:
BXP’s share of depreciation and amortization expense 4,223 7,929 4,918 2,883 1,728 3,964 4 25,645
BXP’s share of FFO $ 3,436 $ 7,137 $ (485) $ 3,460 $ 385 $ 4,143 $ 18,076

_____________

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

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

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

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

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

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

Q1 2023
Lease expirations - All in-service properties1, 2, 3

as of March 31, 2023

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2023 2,000,925 106,471,454 65.90 4.14 % 4
2024 3,279,044 185,751,384 64.48 7.38 %
2025 3,003,460 176,676,925 70.09 6.46 %
2026 3,346,092 207,165,558 76.69 6.92 %
2027 2,406,237 157,410,341 72.40 5.57 %
2028 3,512,387 229,493,418 82.98 7.09 %
2029 3,175,444 204,732,935 73.31 7.16 %
2030 2,898,867 199,133,965 72.05 7.08 %
2031 1,985,459 151,963,206 82.83 4.70 %
2032 2,316,246 151,483,262 79.36 4.89 %
Thereafter 13,295,997 845,402,061 80.78 26.82 %

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 210,070 7,641,759 36.60 9.21 % 4
2024 83,325 5,363,216 67.54 3.50 %
2025 121,466 7,954,848 75.81 4.63 %
2026 103,086 21,748,834 246.88 3.89 %
2027 124,437 13,381,518 117.36 5.03 %
2028 127,106 11,996,953 98.29 5.39 %
2029 134,879 12,187,796 113.19 4.75 %
2030 186,758 11,206,729 94.91 5.21 %
2031 53,698 4,057,484 89.33 2.00 %
2032 100,317 6,859,306 69.56 4.35 %
Thereafter 779,924 66,282,815 110.28 26.53 %

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 2,210,995 114,113,213 62.55 4.42 % 4
2024 3,362,369 191,114,600 64.56 7.17 %
2025 3,124,926 184,631,773 70.32 6.36 %
2026 3,449,178 228,914,392 82.06 6.76 %
2027 2,530,674 170,791,859 74.64 5.54 %
2028 3,639,493 241,490,371 83.63 6.99 %
2029 3,310,323 216,920,731 74.79 7.02 %
2030 3,085,625 210,340,694 72.98 6.98 %
2031 2,039,157 156,020,690 82.99 4.55 %
2032 2,416,563 158,342,568 78.88 4.86 %
Thereafter 14,075,921 911,684,876 82.38 26.80 %

All values are in US Dollars.

_____________

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

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

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

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

Q1 2023
Lease expirations - Boston region in-service properties 1, 2, 3

as of March 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 645,237 572,633 4
2024 816,629 771,177
2025 999,032 979,888
2026 794,464 763,153
2027 667,605 659,805
2028 1,146,444 1,141,098
2029 1,115,101 981,891
2030 1,575,752 1,569,079
2031 568,598 501,162
2032 527,583 527,583
Thereafter 4,396,356 3,525,420

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 141,955 141,955
2024 20,942 20,942
2025 41,903 41,588
2026 26,512 26,512
2027 67,909 61,595
2028 75,560 75,560
2029 64,164 62,814
2030 91,335 56,940
2031 4,266 4,266
2032 65,011 64,420
Thereafter 267,084 193,184

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 787,192 714,588 4
2024 837,571 792,119
2025 1,040,935 1,021,476
2026 820,976 789,665
2027 735,514 721,400
2028 1,222,004 1,216,658
2029 1,179,265 1,044,705
2030 1,667,087 1,626,019
2031 572,864 505,428
2032 592,594 592,003
Thereafter 4,663,440 3,718,604

All values are in US Dollars.

_____________

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

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

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

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

Q1 2023
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of March 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 27,388 22,016 4
Q2 2023 150,347 138,729
Q3 2023 217,588 200,693
Q4 2023 249,914 211,195
Total 2023 645,237 572,633
Q1 2024 121,747 110,385
Q2 2024 338,667 308,897
Q3 2024 147,716 143,395
Q4 2024 208,499 208,499
Total 2024 816,629 771,177

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 125,494 125,494
Q3 2023 2,443 2,443
Q4 2023 14,018 14,018
Total 2023 141,955 141,955
Q1 2024 2,901 2,901
Q2 2024 — —
Q3 2024 4,341 4,341
Q4 2024 13,700 13,700
Total 2024 20,942 20,942

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 27,388 22,016 4
Q2 2023 275,841 264,223
Q3 2023 220,031 203,136
Q4 2023 263,932 225,213
Total 2023 787,192 714,588
Q1 2024 124,648 113,286
Q2 2024 338,667 308,897
Q3 2024 152,057 147,736
Q4 2024 222,199 222,199
Total 2024 837,571 792,119

All values are in US Dollars.

_____________

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

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

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

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

Q1 2023
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 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 7,532 4,143
2024 153,749 84,562
2025 12,255 6,740
2026 605,957 333,276
2027 27,999 15,399
2028 305,816 158,419
2029 352,443 176,348
2030 — —
2031 — —
2032 241,672 121,023
Thereafter 186,894 93,447

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 7,532 4,143
2024 155,749 85,562
2025 29,473 16,121
2026 611,784 336,481
2027 27,999 15,399
2028 305,816 158,419
2029 390,561 197,313
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

Q1 2023
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 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 2,864 1,575
Q3 2023 2,205 1,213
Q4 2023 2,463 1,355
Total 2023 7,532 4,143
Q1 2024 106,189 58,404
Q2 2024 — —
Q3 2024 25,347 13,941
Q4 2024 22,213 12,217
Total 2024 153,749 84,562

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
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 2,864 1,575
Q3 2023 2,205 1,213
Q4 2023 2,463 1,355
Total 2023 7,532 4,143
Q1 2024 106,189 58,404
Q2 2024 — —
Q3 2024 27,347 14,941
Q4 2024 22,213 12,217
Total 2024 155,749 85,562

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

Q1 2023
Lease expirations - New York region in-service properties 1, 2, 3

as of March 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 275,320 194,160 4
2024 1,190,849 993,080
2025 923,828 616,839
2026 685,091 499,885
2027 440,033 382,368
2028 619,011 422,985
2029 665,717 639,350
2030 736,441 685,999
2031 371,321 337,512
2032 147,795 107,124
Thereafter 4,503,638 3,226,036

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 12,858 12,048
2024 3,342 3,342
2025 4,179 4,179
2026 29,032 22,131
2027 — —
2028 2,424 647
2029 8,463 4,557
2030 44,899 13,263
2031 13,633 10,123
2032 11,246 10,128
Thereafter 234,190 158,421

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 288,178 206,208 4
2024 1,194,191 996,422
2025 928,007 621,018
2026 714,123 522,016
2027 440,033 382,368
2028 621,435 423,632
2029 674,180 643,907
2030 781,340 699,262
2031 384,954 347,635
2032 159,041 117,252
Thereafter 4,737,828 3,384,457

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q1 2023
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of March 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 66,325 39,355 4
Q2 2023 86,739 69,947
Q3 2023 69,345 52,898
Q4 2023 52,911 31,959
Total 2023 275,320 194,160
Q1 2024 377,215 359,399
Q2 2024 319,431 178,788
Q3 2024 280,155 255,575
Q4 2024 214,048 199,318
Total 2024 1,190,849 993,080

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 11,011 10,940
Q3 2023 — —
Q4 2023 1,847 1,108
Total 2023 12,858 12,048
Q1 2024 425 425
Q2 2024 — —
Q3 2024 2,917 2,917
Q4 2024 — —
Total 2024 3,342 3,342

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 66,325 39,355 4
Q2 2023 97,750 80,887
Q3 2023 69,345 52,898
Q4 2023 54,758 33,067
Total 2023 288,178 206,208
Q1 2024 377,640 359,824
Q2 2024 319,431 178,788
Q3 2024 283,072 258,492
Q4 2024 214,048 199,318
Total 2024 1,194,191 996,422

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q1 2023
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 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 430,128 390,431 4
2024 682,699 631,136
2025 723,015 694,063
2026 699,814 610,840
2027 522,695 511,731
2028 603,745 573,758
2029 303,177 284,893
2030 350,234 338,621
2031 841,263 814,557
2032 303,153 272,636
Thereafter 749,906 749,906

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 33,255 33,255 4
2024 4,231 4,231
2025 32,289 32,289
2026 6,955 6,955
2027 12,951 12,951
2028 14,965 14,965
2029 6,216 6,216
2030 14,389 14,389
2031 6,709 3,355
2032 6,357 6,357
Thereafter 27,050 27,050

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 463,383 423,686 79.93 4
2024 686,930 635,367
2025 755,304 726,352
2026 706,769 617,795
2027 535,646 524,682
2028 618,710 588,723
2029 309,393 291,109
2030 364,623 353,010
2031 847,972 817,912
2032 309,510 278,993
Thereafter 776,956 776,956

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q1 2023
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 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 6,510 6,510 4
Q2 2023 50,538 42,160
Q3 2023 251,391 249,302
Q4 2023 121,689 92,460
Total 2023 430,128 390,431
Q1 2024 54,590 34,640
Q2 2024 320,073 302,397
Q3 2024 59,738 49,066
Q4 2024 248,298 245,034
Total 2024 682,699 631,136

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 3,389 3,389 4
Q2 2023 6,141 6,141
Q3 2023 13,194 13,194
Q4 2023 10,531 10,531
Total 2023 33,255 33,255
Q1 2024 3,811 3,811
Q2 2024 — —
Q3 2024 420 420
Q4 2024 — —
Total 2024 4,231 4,231

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 9,899 9,899 4
Q2 2023 56,679 48,301
Q3 2023 264,585 262,496
Q4 2023 132,220 102,991
Total 2023 463,383 423,686
Q1 2024 58,401 38,451
Q2 2024 320,073 302,397
Q3 2024 60,158 49,486
Q4 2024 248,298 245,034
Total 2024 686,930 635,367

All values are in US Dollars.

_____________

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

2Includes partially placed in-service leased space.

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

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

Q1 2023
Lease expirations - Seattle region in-service properties 1, 2, 3

as of March 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 94,089 81,969
2024 31,366 12,134
2025 24,247 8,164
2026 34,510 33,642
2027 189,746 186,827
2028 646,975 310,444
2029 113,708 112,239
2030 55,243 55,243
2031 49,743 46,598
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 97,807 85,687
2024 32,406 12,484
2025 24,247 8,164
2026 38,196 34,883
2027 189,746 186,827
2028 647,920 311,389
2029 113,708 112,239
2030 55,243 55,243
2031 52,791 49,646
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

_____________

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

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

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

Q1 2023
Quarterly lease expirations - Seattle region in-service properties 1, 2, 3

as of March 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 45,001 45,001
Q3 2023 49,088 36,968
Q4 2023 — —
Total 2023 94,089 81,969
Q1 2024 — —
Q2 2024 28,026 9,436
Q3 2024 — —
Q4 2024 3,340 2,698
Total 2024 31,366 12,134

All values are in US Dollars.

RETAIL

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

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2023 — —
Q2 2023 45,001 45,001
Q3 2023 52,806 40,686
Q4 2023 — —
Total 2023 97,807 85,687
Q1 2024 — —
Q2 2024 28,026 9,436
Q3 2024 1,040 350
Q4 2024 3,340 2,698
Total 2024 32,406 12,484

All values are in US Dollars.

_____________

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

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

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

Q1 2023
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 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 548,619 372,290
2024 403,752 388,888
2025 321,083 215,124
2026 526,256 460,595
2027 558,159 417,979
2028 190,396 158,827
2029 625,298 598,024
2030 181,197 115,072
2031 154,534 134,849
2032 1,031,306 829,000
Thereafter 3,438,906 2,864,097

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 18,284 17,808
2024 51,770 49,543
2025 25,877 17,497
2026 31,074 28,050
2027 43,577 39,475
2028 33,212 29,936
2029 17,918 13,121
2030 30,852 30,577
2031 26,042 24,627
2032 17,703 17,703
Thereafter 233,607 213,415

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 566,903 390,098
2024 455,522 438,431
2025 346,960 232,621
2026 557,330 488,645
2027 601,736 457,454
2028 223,608 188,763
2029 643,216 611,145
2030 212,049 145,649
2031 180,576 159,476
2032 1,049,009 846,703
Thereafter 3,672,513 3,077,512

All values are in US Dollars.

_____________

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

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

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

Q1 2023
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 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 323,819 148,960
Q3 2023 143,508 143,508
Q4 2023 81,292 79,821
Total 2023 548,619 372,290
Q1 2024 20,034 14,435
Q2 2024 66,303 66,303
Q3 2024 26,476 20,980
Q4 2024 290,939 287,170
Total 2024 403,752 388,888

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 2,029 2,029
Q3 2023 6,655 6,655
Q4 2023 9,600 9,124
Total 2023 18,284 17,808
Q1 2024 13,537 13,537
Q2 2024 22,477 20,250
Q3 2024 3,441 3,441
Q4 2024 12,315 12,315
Total 2024 51,770 49,543

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 325,848 150,989
Q3 2023 150,163 150,163
Q4 2023 90,892 88,945
Total 2023 566,903 390,098
Q1 2024 33,571 27,972
Q2 2024 88,780 86,553
Q3 2024 29,917 24,421
Q4 2024 303,254 299,485
Total 2024 455,522 438,431

All values are in US Dollars.

_____________

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

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

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

Q1 2023
Lease expirations - CBD properties 1, 2, 3

as of March 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 416,566 343,962 4
2024 302,576 257,124
2025 317,803 298,344
2026 575,275 543,964
2027 525,273 511,158
2028 1,092,936 1,087,590
2029 726,476 591,916
2030 1,501,073 1,460,005
2031 38,499 31,403
2032 439,405 438,814
Thereafter 4,350,751 3,405,916

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 7,532 4,143
2024 155,749 85,562
2025 29,473 16,122
2026 611,784 336,481
2027 27,999 15,399
2028 305,816 158,419
2029 390,561 197,313
2030 5,283 2,906
2031 — —
2032 241,672 121,023
Thereafter 204,887 102,444

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 206,231 124,261 4
2024 695,418 497,649
2025 679,400 372,411
2026 471,575 279,468
2027 197,448 139,783
2028 579,222 381,419
2029 605,865 575,592
2030 734,166 652,088
2031 223,678 186,359
2032 103,731 61,943
Thereafter 4,648,407 3,295,036

All values are in US Dollars.

Q1 2023
Lease expirations - CBD properties (continued) 1, 2, 3

as of March 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 242,457 242,457 4
2024 518,874 518,874
2025 336,988 336,988
2026 493,225 493,225
2027 431,377 431,377
2028 530,666 530,666
2029 272,825 272,825
2030 288,868 288,868
2031 787,850 787,850
2032 248,475 248,475
Thereafter 776,956 776,956

All values are in US Dollars.

Seattle, WA

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 97,807 85,687
2024 32,406 12,484
2025 24,247 8,164
2026 38,196 34,883
2027 189,746 186,827
2028 647,920 311,389
2029 113,708 112,239
2030 55,243 55,243
2031 52,791 49,646
2032 64,737 51,388
Thereafter 20,297 6,834

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2023 249,976 73,170
2024 67,013 49,922
2025 173,879 59,540
2026 338,009 269,324
2027 220,521 76,239
2028 133,921 99,076
2029 83,123 51,052
2030 107,898 41,498
2031 86,621 65,520
2032 552,493 350,187
Thereafter 815,187 587,972

All values are in US Dollars.

_____________

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

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

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

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

Q1 2023
Lease expirations - Suburban properties 1, 2, 3

as of March 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 370,626 370,626 4
2024 534,995 534,995
2025 723,132 723,132
2026 245,701 245,701
2027 210,241 210,241
2028 129,068 129,068
2029 452,789 452,789
2030 166,014 166,014
2031 534,365 474,025
2032 153,189 153,189
Thereafter 312,689 312,689

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 81,947 81,947 4
2024 498,773 498,773
2025 248,607 248,607
2026 242,548 242,548
2027 242,585 242,585
2028 42,213 42,213
2029 68,315 68,315
2030 47,174 47,174
2031 161,276 161,276
2032 55,310 55,310
Thereafter 89,421 89,421

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 220,926 181,229
2024 168,056 116,493
2025 418,316 389,364
2026 213,544 124,570
2027 104,269 93,305
2028 88,044 58,057
2029 36,568 18,284
2030 75,755 64,142
2031 60,122 30,061
2032 61,035 30,518
Thereafter — —

All values are in US Dollars.

Q1 2023
Lease expirations - Suburban properties (continued) 1, 2, 3

as of March 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 316,927 316,927
2024 388,509 388,509
2025 173,081 173,081
2026 219,321 219,321
2027 381,215 381,215
2028 89,687 89,687
2029 560,093 560,093
2030 104,151 104,151
2031 93,955 93,955
2032 496,516 496,516
Thereafter 2,857,326 2,489,540

All values are in US Dollars.

_____________

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

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

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

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

Q1 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
Credit Suisse Tayo Okusanya 212.325.1402
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs Caitlin Burrows 212.902.4736
Green Street Advisors Dylan Burzinski 949.640.8780
Jefferies & Co. Jonathan Peterson 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Todd Thomas 917.368.2286
Mizuho Securities Vikram Malhotra 212.209.9300
Morgan Stanley Ronald Kamdem 212.296.8319
Piper Sandler Companies Alexander Goldfarb 212.466.7937
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Michael Goldsmith 212.713.2951
Wells Fargo Securities Blaine Heck 443.263.6529
Wolfe Research Andrew Rosivach 646.582.9250 Debt Research Coverage
--- --- ---
Barclays Srinjoy Banerjee 212.526.3521
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.410.1100 Rating Agencies
--- --- ---
Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q1 2023
--- ---
Definitions

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

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

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

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q1 2023
Definitions (continued)

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

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

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

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

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

Fixed Charge Coverage Ratio

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

Funds Available for Distribution (FAD) and FAD Payout Ratio

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

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

Q1 2023
Definitions (continued)

Funds from Operations (FFO)

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

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

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q1 2023
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

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

Q1 2023
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Mar-23 31-Dec-22
Revenue $ 803,200 $ 789,824
Partners’ share of revenue from consolidated joint ventures (JVs) (79,448) (78,915)
BXP’s share of revenue from unconsolidated JVs 65,659 61,988
BXP’s Share of revenue $ 789,411 $ 772,897
Straight-line rent $ 24,806 $ 32,038
Partners’ share of straight-line rent from consolidated JVs (3,649) (4,635)
BXP’s share of straight-line rent from unconsolidated JVs 2,706 3,626
BXP’s Share of straight-line rent $ 23,863 $ 31,029
Fair value lease revenue 2 $ 3,596 $ 3,088
Partners’ share of fair value lease revenue from consolidated JVs 2 (140) (140)
BXP’s share of fair value lease revenue from unconsolidated JVs 2 1,123 893
BXP’s Share of fair value lease revenue 2 $ 4,579 $ 3,841
Lease termination income $ 195 $ 1,723
Partners’ share of termination income from consolidated JVs (172) (206)
BXP’s share of termination income from unconsolidated JVs 877 803
BXP’s Share of termination income $ 900 $ 2,320
Non-cash termination income adjustment (fair value lease amounts) $ — $ —
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs — —
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated JVs — —
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) $ — $ —
Parking and other revenue $ 23,064 $ 26,088
Partners’ share of parking and other revenue from consolidated JVs (594) (738)
BXP’s share of parking and other revenue from unconsolidated JVs 2,925 2,834
BXP’s Share of parking and other revenue $ 25,395 $ 28,184
Hedge amortization, net of costs $ 1,590 $ 1,590
Partners’ share of hedge amortization, net of costs from consolidated JVs (144) (144)
BXP’s share of hedge amortization, net of costs from unconsolidated JVs 304 305
BXP’s Share of hedge amortization, net of costs $ 1,750 $ 1,751
Straight-line ground rent expense adjustment $ 401 $ 262
Partners’ share of straight-line ground rent expense adjustment from consolidated JVs — —
BXP’s share of straight-line ground rent expense adjustment from unconsolidated JVs 142 142
BXP’s Share of straight-line ground rent expense adjustment $ 543 $ 404
Depreciation and amortization $ 208,734 $ 198,330
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,711) (17,435)
BXP’s share of depreciation and amortization from unconsolidated JVs 25,645 24,626
BXP’s Share of depreciation and amortization $ 216,668 $ 205,521
Lease transaction costs that qualify as rent inducements 3 $ 5,386 $ 11,212
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (185) (101)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 318 600
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 5,519 $ 11,711
2nd generation tenant improvements and leasing commissions $ 53,656 $ 50,638
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (9,904) (3,733)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 1,403 8,708
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 45,155 $ 55,613 Q1 2023
--- ---
Reconciliations (continued) Maintenance capital expenditures 4 $ 21,455 $ 25,813
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (3,216) (4,368)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 269 784
BXP’s Share of maintenance capital expenditures 4 $ 18,508 $ 22,229
Interest expense $ 134,207 $ 119,923
Partners’ share of interest expense from consolidated JVs (11,761) (11,954)
BXP’s share of interest expense from unconsolidated JVs 23,701 21,435
BXP’s Share of interest expense $ 146,147 $ 129,404
Capitalized interest $ 10,589 $ 12,082
Partners’ share of capitalized interest from consolidated JVs (30) (80)
BXP’s share of capitalized interest from unconsolidated JVs 1,630 1,402
BXP’s Share of capitalized interest $ 12,189 $ 13,404
Amortization of financing costs $ 4,955 $ 3,716
Partners’ share of amortization of financing costs from consolidated JVs (499) (497)
BXP’s share of amortization of financing costs from unconsolidated JVs 760 759
BXP’s Share of amortization of financing costs $ 5,216 $ 3,978
Fair value interest adjustment $ — $ —
Partners’ share of fair value of interest adjustment from consolidated JVs — —
BXP’s share off fair value interest adjustment from unconsolidated JVs 499 250
BXP’s Share of fair value interest adjustment $ 499 $ 250

_____________

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.

Q1 2023
Reconciliations (continued)

for the three months ended March 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 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 75,036 $ 99,273 $ 174,309
Straight-line rent 1,140 7,096 8,236
Fair value lease revenue 327 21 348
Termination income — 383 383
Total lease revenue 76,503 106,773 183,276
Parking and other — 1,321 1,321
Total rental revenue 2 76,503 108,094 184,597
Expenses
Operating 31,431 39,683 71,114
Net Operating Income (NOI) 45,072 68,411 113,483
Other income (expense)
Development and management services revenue — 456 456
Interest and other income 968 1,113 2,081
Interest expense (20,882) (7,583) (28,465)
Depreciation and amortization expense (16,593) (23,230) (39,823)
General and administrative expense (32) (39) (71)
Total other income (expense) (36,539) (29,283) (65,822)
Net income $ 8,533 $ 39,128 $ 47,661
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 17,364 $ 29,733 $ 47,097
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 27,708 $ 38,678 $ 66,386
Unearned portion of capitalized fees 4 $ 257 $ 365 $ 622
Partners’ share of select items 3
Partners’ share of parking and other revenue $ — $ 594 $ 594
Partners’ share of hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 153 $ 499
Partners’ share of depreciation and amortization related to capitalized fees $ 366 $ 452 $ 818
Partners’ share of capitalized interest $ 30 $ — $ 30
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (185) $ (185)
Partners’ share of management and other fees $ 668 $ 1,053 $ 1,721
Partners’ share of basis differential depreciation and amortization expense $ (20) $ (178) $ (198)
Partners’ share of basis differential interest and other adjustments $ (4) $ 23 $ 19
Reconciliation of Partners’ share of EBITDAre 5
Partners’ NCI $ 2,403 $ 16,257 $ 18,660
Add:
Partners’ share of interest expense after BXP’s basis differential 8,349 3,412 11,761
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,983 10,728 17,711
Partners’ share of EBITDAre $ 17,735 $ 30,397 $ 48,132
Q1 2023
--- ---
Reconciliations (continued)

for the three months ended March 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
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 3 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 2 $ 30,601 $ 48,642 $ 79,243
Less: Termination income — 172 172
Rental revenue (excluding termination income) 2 30,601 48,470 79,071
Less: Operating expenses (including partners’ share of management and other fees) 13,237 18,909 32,146
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 17,364 $ 29,561 $ 46,925
Rental revenue (excluding termination income) 2 $ 30,601 $ 48,470 $ 79,071
Less: Straight-line rent 456 3,193 2 3,649
Fair value lease revenue 131 9 140
Add: Lease transaction costs that qualify as rent inducements — 185 185
Subtotal 30,014 45,453 75,467
Less: Operating expenses (including partners’ share of management and other fees) 13,237 18,909 32,146
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,777 $ 26,544 $ 43,321
Reconciliation of Partners’ share of Revenue 3
Rental revenue 2 $ 30,601 $ 48,642 $ 79,243
Add: Development and management services revenue — 205 205
Revenue $ 30,601 $ 48,847 $ 79,448

_________

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

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

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

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

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

Q1 2023
Reconciliations (continued)

for the three months ended March 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 $ 22,370 $ 35,225 $ 22,296 $ 11,399 $ 6,886 $ 33,590 $ 131,766
Straight-line rent 1,568 (333) 249 468 545 3,819 6,316
Fair value lease revenue — 229 1,538 23 1,134 — 2,924
Termination income — — 1,358 — — 116 1,474
Total lease revenue 23,938 35,121 25,441 11,890 8,565 37,525 142,480
Parking and other 10 3,652 262 165 481 2,013 6,583
Total rental revenue 3 23,948 38,773 25,703 12,055 9,046 39,538 149,063
Expenses
Operating 6,796 14,207 13,762 4 4,717 3,566 14,046 57,094
Net operating income/(loss) 17,152 24,566 11,941 7,338 5,480 25,492 91,969
Other income/(expense)
Development and management services revenue — — 749 — — 118 867
Interest and other income 398 371 57 (7) 70 604 1,493
Interest expense (10,660) (11,794) (12,404) — (4,405) (17,987) (57,250)
Unrealized loss on derivative instruments — — (10,610) — — — (10,610)
Transaction costs (9) (61) — — — (4) (74)
Depreciation and amortization expense (8,435) (12,997) (8,301) (4,780) (5,156) (10,309) (49,978)
General and administrative expense (9) (3) (81) (1) (5) (13) (112)
Total other income/(expense) (18,715) (24,484) (30,590) (4,788) (9,496) (27,591) (115,664)
Net income/(loss) $ (1,563) $ 82 $ (18,649) $ 2,550 $ (4,016) $ (2,099) $ (23,695)
BXP’s share of select items:
BXP’s share of parking and other revenue $ 5 $ 1,913 $ 81 $ 83 $ 162 $ 681 5 $ 2,925
BXP’s share of amortization of financing costs $ 168 $ 102 $ 69 $ — $ 29 $ 392 5 $ 760
BXP’s share of hedge amortization, net of costs $ — $ — $ — $ — $ 252 $ 52 $ 304
BXP’s share of fair value interest adjustment $ — $ — $ 499 $ — $ — $ — $ 499
BXP’s share of capitalized interest $ — $ — $ 1,570 $ — $ — $ 60 5 $ 1,630
Reconciliation of BXP’s share of EBITDAre
Income/(loss) from unconsolidated joint ventures $ (787) $ (792) $ (5,403) $ 577 $ (1,343) $ 179 5 $ (7,569)
Add:
BXP’s share of interest expense 5,331 6,240 4,498 — 1,483 6,149 5 23,701
BXP’s share of depreciation and amortization expense 4,223 7,929 6 4,918 2,883 6 1,728 3,964 5 25,645
BXP’s share of EBITDAre $ 8,767 $ 13,377 6 $ 4,013 $ 3,460 6 $ 1,868 $ 10,292 5 $ 41,777 Q1 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 $ 11,975 $ 20,706 6 $ 8,281 $ 5,816 6 $ 3,045 $ 15,437 5 $ 65,260
BXP’s share of operating expenses 3,398 7,481 4,631 2,352 1,199 5,443 5 24,504
BXP’s share of net operating income/(loss) 8,577 13,225 6 3,650 3,464 6 1,846 9,994 5 40,756
Less:
BXP’s share of termination income — — 847 — — 30 877
BXP’s share of net operating income/(loss) (excluding termination income) 8,577 13,225 2,803 3,464 1,846 9,964 5 39,879
Less:
BXP’s share of straight-line rent 783 (96) 6 315 240 6 184 1,280 5 2,706
BXP’s share of fair value lease revenue — 427 6 521 (207) 6 382 — 1,123
Add:
BXP’s share of straight-line ground rent expense adjustment — — 142 — — — 142
BXP’s share of lease transaction costs that qualify as rent inducements — 233 — — — 85 5 318
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 7,794 $ 13,127 6 $ 2,109 $ 3,431 6 $ 1,280 $ 8,769 5 $ 36,510
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 3 $ 11,975 $ 20,706 6 $ 8,281 $ 5,816 6 $ 3,045 $ 15,437 5 $ 65,260
Add:
BXP’s share of development and management services revenue — — 375 — — 24 399
BXP’s share of revenue $ 11,975 $ 20,706 6 $ 8,656 $ 5,816 6 $ 3,045 $ 15,461 5 $ 65,659

_____________

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

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

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

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

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

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

Q1 2023
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Dec-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 121,790 $ 184,537
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 13,972 20,544
Noncontrolling interest in property partnerships 19,961 18,204
Net income 155,723 223,285
Add:
Interest expense 119,923 103,331
Losses from early extinguishments of debt — 44,284
Unrealized loss on non-real estate investment 150 —
Loss from unconsolidated joint ventures 58,451 825
Depreciation and amortization expense 198,330 177,521
Transaction costs 759 2,066
Payroll and related costs from management services contracts 4,246 3,321
General and administrative expense 36,000 33,649
Less:
Gains from investments in securities 2,096 1,882
Interest and other income (loss) 5,789 1,564
Gains on sales-type lease 10,058 —
Gains on sales of real estate 55,726 115,556
Direct reimbursements of payroll and related costs from management services contracts 4,246 3,321
Development and management services revenue 8,406 7,516
Net Operating Income (NOI) 487,261 458,443
Add:
BXP’s share of NOI from unconsolidated joint ventures 37,734 33,278
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 48,589 47,841
BXP’s Share of NOI 476,406 443,880
Less:
Termination income 1,723 (16)
BXP’s share of termination income from unconsolidated joint ventures 803 88
Add:
Partners’ share of termination income from consolidated joint ventures 206 (4)
BXP’s Share of NOI (excluding termination income) $ 474,086 $ 443,804
Net Operating Income (NOI) $ 487,261 $ 458,443
Less:
Termination income 1,723 (16)
NOI from non Same Properties (excluding termination income) 41,487 14,845
Same Property NOI (excluding termination income) 444,051 443,614
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 48,383 47,845
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) 36,931 33,190
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 10,220 6,828
BXP’s Share of Same Property NOI (excluding termination income) $ 422,379 $ 422,131
Change in BXP’s Share of Same Property NOI (excluding termination income) $ 248
Change in BXP’s Share of Same Property NOI (excluding termination income) 0.1 %
Q1 2023
--- ---
Reconciliations (continued)

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

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

(dollars in thousands)

Three Months Ended
31-Dec-22 31-Dec-21
Net income attributable to Boston Properties, Inc. $ 121,790 $ 184,537
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 13,972 20,544
Noncontrolling interest in property partnerships 19,961 18,204
Net income 155,723 223,285
Add:
Interest expense 119,923 103,331
Losses from early extinguishments of debt — 44,284
Unrealized loss on non-real estate investment 150 —
Loss from unconsolidated joint ventures 58,451 825
Depreciation and amortization expense 198,330 177,521
Transaction costs 759 2,066
Payroll and related costs from management services contracts 4,246 3,321
General and administrative expense 36,000 33,649
Less:
Gains from investments in securities 2,096 1,882
Interest and other income (loss) 5,789 1,564
Gains on sales-type lease 10,058 —
Gains on sales of real estate 55,726 115,556
Direct reimbursements of payroll and related costs from management services contracts 4,246 3,321
Development and management services revenue 8,406 7,516
Net Operating Income (NOI) 487,261 458,443
Less:
Straight-line rent 32,038 30,619
Fair value lease revenue 3,088 1,412
Termination income 1,723 (16)
Add:
Straight-line ground rent expense adjustment 1 631 680
Lease transaction costs that qualify as rent inducements 2 11,212 3,731
NOI - cash (excluding termination income) 462,255 430,839
Less:
NOI - cash from non Same Properties (excluding termination income) 34,311 10,745
Same Property NOI - cash (excluding termination income) 427,944 420,094
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 43,709 45,401
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) 33,154 30,412
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 9,021 7,158
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 408,368 $ 397,947
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) $ 10,421
Change in BXP’s Share of Same Property NOI - cash (excluding termination income) 2.6 %

_____________

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 $(369) and $52 for the three months ended December 31, 2022 and 2021, respectively. As of December 31, 2022, the Company has remaining lease payments aggregating approximately $25.3 million, all of which it expects to incur by the end of 2024 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2024 may vary significantly.

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

Q1 2023
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-22 31-Dec-21
Revenue
Lease $ 718,120 $ 690,912
Parking and other 21,734 23,087
Hotel revenue 4,557 6,227
Development and management services 5,831 7,516
Direct reimbursements of payroll and related costs from management services contracts 4,065 3,321
Total revenue 754,307 731,063
Expenses
Operating 138,723 129,615
Real estate taxes 131,527 127,125
Demolition costs 5 38
Hotel operating 4,840 5,005
General and administrative 43,194 33,649
Payroll and related costs from management services contracts 4,065 3,321
Transaction costs — 2,066
Depreciation and amortization 177,624 177,521
Total expenses 499,978 478,340
Other income (expense)
Income (loss) from unconsolidated joint ventures 2,189 (825)
Gains on sales of real estate 22,701 115,556
Gains (losses) from investments in securities (2,262) 1,882
Interest and other income (loss) 1,228 1,564
Losses from early extinguishments of debt — (44,284)
Interest expense (101,228) (103,331)
Net income 176,957 223,285
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (17,549) (18,204)
Noncontrolling interest - common units of the Operating Partnership (16,361) (20,544)
Net income attributable to Boston Properties, Inc. $ 143,047 $ 184,537
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.91 $ 1.18
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.91 $ 1.18

66

Document

Exhibit 99.2

bxp-colora.gif

BXP ANNOUNCES FIRST QUARTER 2023 RESULTS; REPORTS Q1 EPS OF $0.50 AND FFO PER SHARE OF $1.73

Commenced Development of Two Fully Pre-Leased Life Sciences Projects Totaling More Than 800,000 Square Feet in Cambridge, Massachusetts

BOSTON, MA, April 25, 2023 - BXP (NYSE: BXP), the largest publicly traded developer, owner, and manager of premier workplaces in the United States, reported results today for the first quarter ended March 31, 2023.

Financial highlights for the first quarter include:

•Revenue increased 6.5% to $803.2 million for the quarter ended March 31, 2023, as compared to $754.3 million for the quarter ended March 31, 2022.

•Net income attributable to common shareholders of $77.9 million, or $0.50 per diluted share (EPS), for the quarter ended March 31, 2023, compared to $143.0 million, or $0.91 per diluted share, for the quarter ended March 31, 2022. The decrease compared to Q1 2022 is primarily due to:

◦$22.7 million of higher gains on sales recorded in Q1 2022;

◦greater depreciation expense of $31.1 million in Q1 2023 primarily due to development activities and asset acquisitions; and

◦higher interest expense of $33.0 million partially offset by higher contributions from portfolio operations of approximately $21.7 million in Q1 2023.

•Funds from Operations (FFO) of $272.0 million, or $1.73 per diluted share, for the quarter ended March 31, 2023, compared to FFO of $286.1 million, or $1.82 per diluted share, for the quarter ended March 31, 2022. The decrease from Q1 2022 is primarily due to higher interest expense of $33.0 million, partially offset by higher contributions from portfolio operations of approximately $21.7 million.

•EPS for the first quarter fell short of the mid-point of BXP’s guidance by $0.03 primarily due to accelerated depreciation associated with the redevelopment of 300 Binney Street.

•FFO per diluted share exceeded the mid-point of BXP’s guidance by $0.06 due to portfolio outperformance primarily as a result of lower-than-projected operating expenses.

BXP also provided updated guidance for second quarter 2023 EPS of $0.59 - $0.61 and FFO of $1.79 - $1.81 per diluted share, and full year 2023 EPS of $2.30 - $2.36 and FFO of $7.14 - $7.20 per diluted share.

See “EPS and FFO per Share Guidance” below.

First quarter and recent business highlights include:

–more–

•Executed approximately 660,000 square feet of leases with a weighted-average lease term of 7.7 years.

•Further expanded BXP’s life sciences portfolio in Cambridge, Massachusetts, the largest and most important cluster of life sciences companies and research space in the U.S., by commencing the development/redevelopment of two fully pre-leased projects:

◦290 Binney Street, an approximately 566,000 square foot laboratory/life sciences property, which is 100% pre-leased to AstraZeneca for a lease term of 15 years.

◦300 Binney Street, an approximately 195,000 net rentable square foot premier workplace that is being redeveloped into approximately 236,000 net rentable square feet of laboratory/life sciences space, which is 100% pre-leased to the Broad Institute for a lease term of 15 years.

•Completed the acquisition of a 50% interest in a joint venture that owns 13100 and 13150 Worldgate Drive located in Herndon, Virginia for a gross purchase price of approximately $17.0 million. The acquisition was completed with available cash. The joint venture intends to redevelop the property for residential use. There can be no assurance that the joint venture will commence the development as currently contemplated or at all.

•On January 4, 2023, BPLP closed on a $1.2 billion unsecured term loan facility that matures in May 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. 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 $464.0 million.

•On April 21, 2023, a joint venture in which BXP has a 50% interest exercised an option to extend by one year the maturity date of its $252.6 million construction loan collateralized by its 7750 Wisconsin Avenue property. The completed 734,000 square foot build-to-suit, premier workplace is located in Bethesda, Maryland and is 100% leased to an affiliate of Marriott International, Inc. Effective June 1, 2023, the financing will bear interest at a variable rate equal to Term SOFR plus 1.35% per annum and now matures on April 26, 2024, with a one-year extension option, subject to certain conditions.

•Continued BXP’s leadership and ongoing commitment to ESG and sustainability performance:

◦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

◦published, In April 2023, 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

–more–

publication, BXP announced its second annual ESG Investor Update Webcast to be held on May 31, 2023.

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

Second Quarter 2023 Full Year 2023
Low High Low High
Projected EPS (diluted) $ 0.59 $ 0.61 $ 2.30 $ 2.36
Add:
Projected Company share of real estate depreciation and amortization 1.20 1.20 4.84 4.84
Projected FFO per share (diluted) $ 1.79 $ 1.81 $ 7.14 $ 7.20

BXP will host a conference call on Wednesday, April 26, 2023 at 10:00 AM Eastern Time, open to the general public, to discuss the first quarter 2023 results, provide a business update, and discuss other business matters that may be of interest to investors. Participants who would like to join the call and ask a question may register at https://register.vevent.com/register/BI9b503bc560604b2a83e1db1271fc2c2d 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 first 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.

–more–

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 54.5 million square feet and 192 properties, including 15 properties under construction/redevelopment. For more information about BXP, please visit our website or follow us on LinkedIn or Instagram.

This press release contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “anticipates,” “believes,” “budgeted,” “could,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will,” and similar expressions that do not relate to historical matters. These statements are based on our current plans, expectations, projections and assumptions about future events. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which are, in some cases, beyond BXP’s control. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statements. These factors include, without limitation, the risks and uncertainties related to the impact of changes in general economic and capital market conditions, including continued inflation, increasing interest rates, supply chain disruptions, labor market disruptions, dislocation and volatility in capital markets, potential longer-term changes in consumer and client behavior resulting from the severity and duration of any downturn in the U.S. or global economy, general risks affecting the real estate industry (including, without limitation, the inability to enter into or renew leases on favorable terms, changes in client preferences and space utilization, dependence on clients’ financial condition, and competition from other developers, owners and operators of real estate), the impact of geopolitical conflicts, including the ongoing war in Ukraine, the immediate and long-term impact of the outbreak of a highly infectious or contagious disease, such as the COVID-19 global pandemic on our and our clients’ financial condition, results of operations and cash flows (including the impact of actions taken to contain the outbreak or mitigate its impact, the direct and indirect economic effects of the outbreak and containment measures on our clients, and the ability of our clients to successfully operate their businesses), the uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on BXP’s accounting policies and on period-to-period comparisons of financial results, the uncertainties of costs to comply with regulatory changes (including potential costs to comply with the Securities and Exchange Commission’s proposed rules to standardize climate-related disclosures) and other risks and uncertainties detailed from time to time in BXP’s filings with the SEC. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance, or achievements. BXP does not undertake a duty to update or revise any forward-looking statement whether as a result of new information, future events or otherwise, except as otherwise required by law.

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
March 31, 2023 December 31, 2022
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 24,314,813 $ 24,261,588
Construction in progress 618,770 406,574
Land held for future development 626,137 721,501
Right of use assets - finance leases 237,503 237,510
Right of use assets - operating leases 166,699 167,351
Less: accumulated depreciation (6,424,547) (6,298,082)
Total real estate 19,539,375 19,496,442
Cash and cash equivalents 918,952 690,333
Cash held in escrows 45,330 46,479
Investments in securities 32,099 32,277
Tenant and other receivables, net 85,603 81,389
Related party note receivable, net 78,544 78,576
Sales-type lease receivable, net 13,028 12,811
Accrued rental income, net 1,297,767 1,276,580
Deferred charges, net 720,174 733,282
Prepaid expenses and other assets 141,933 43,589
Investments in unconsolidated joint ventures 1,752,617 1,715,911
Total assets $ 24,625,422 $ 24,207,669
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 3,273,553 $ 3,272,368
Unsecured senior notes, net 10,240,967 10,237,968
Unsecured line of credit — —
Unsecured term loan, net 1,194,916 730,000
Lease liabilities - finance leases 250,567 249,335
Lease liabilities - operating leases 204,435 204,686
Accounts payable and accrued expenses 397,798 417,545
Dividends and distributions payable 171,427 170,643
Accrued interest payable 114,400 103,774
Other liabilities 465,276 450,918
Total liabilities 16,313,339 15,837,237
Commitments and contingencies — —
Redeemable deferred stock units 5,599 6,613
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; none issued or outstanding — —
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,908,693 and 156,836,767 issued and 156,829,793 and 156,757,867 outstanding at March 31, 2023 and December 31, 2022, respectively 1,568 1,568
Additional paid-in capital 6,549,314 6,539,147
Dividends in excess of earnings (467,159) (391,356)
Treasury common stock at cost, 78,900 shares at March 31, 2023 and December 31, 2022 (2,722) (2,722)
Accumulated other comprehensive loss (18,214) (13,718)
Total stockholders’ equity attributable to Boston Properties, Inc. 6,062,787 6,132,919
Noncontrolling interests:
Common units of the Operating Partnership 691,627 683,583
Property partnerships 1,552,070 1,547,317
Total equity 8,306,484 8,363,819
Total liabilities and equity $ 24,625,422 $ 24,207,669

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31,
2023 2022
(in thousands, except for per share amounts)
Revenue
Lease $ 756,875 $ 718,120
Parking and other 24,009 21,734
Hotel revenue 8,101 4,557
Development and management services 8,980 5,831
Direct reimbursements of payroll and related costs from management services contracts 5,235 4,065
Total revenue 803,200 754,307
Expenses
Operating
Rental 291,308 270,255
Hotel 6,671 4,840
General and administrative 55,802 43,194
Payroll and related costs from management services contracts 5,235 4,065
Transaction costs 911 —
Depreciation and amortization 208,734 177,624
Total expenses 568,661 499,978
Other income (expense)
Income (loss) from unconsolidated joint ventures (7,569) 2,189
Gains on sales of real estate — 22,701
Interest and other income (loss) 10,941 1,228
Gains (losses) from investments in securities 1,665 (2,262)
Unrealized gain (loss) on non-real estate investment 259 —
Interest expense (134,207) (101,228)
Net income 105,628 176,957
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (18,660) (17,549)
Noncontrolling interest—common units of the Operating Partnership (9,078) (16,361)
Net income attributable to Boston Properties, Inc. $ 77,890 $ 143,047
Basic earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.50 $ 0.91
Weighted average number of common shares outstanding 156,803 156,650
Diluted earnings per common share attributable to Boston Properties, Inc.
Net income $ 0.50 $ 0.91
Weighted average number of common and common equivalent shares outstanding 157,043 157,004

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended March 31,
2023 2022
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. $ 77,890 $ 143,047
Add:
Noncontrolling interest - common units of the Operating Partnership 9,078 16,361
Noncontrolling interests in property partnerships 18,660 17,549
Net income 105,628 176,957
Add:
Depreciation and amortization expense 208,734 177,624
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,711) (17,653)
Company’s share of depreciation and amortization from unconsolidated joint ventures 25,645 22,044
Corporate-related depreciation and amortization (469) (404)
Less:
Gains on sales of real estate — 22,701
Unrealized gain on non-real estate investment 259 —
Noncontrolling interests in property partnerships 18,660 17,549
Funds from operations (FFO) attributable to the Operating Partnership (including Boston Properties, Inc.) 302,908 318,318
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 30,957 32,182
Funds from operations attributable to Boston Properties, Inc. $ 271,951 $ 286,136
Boston Properties, Inc.’s percentage share of funds from operations - basic 89.78 % 89.89 %
Weighted average shares outstanding - basic 156,803 156,650
FFO per share basic $ 1.73 $ 1.83
Weighted average shares outstanding - diluted 157,043 157,004
FFO per share diluted $ 1.73 $ 1.82

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

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

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Occupied by Location (1) % Leased by Location (2)
March 31, 2023 December 31, 2022 March 31, 2023 December 31, 2022
Boston 90.7 % 90.2 % 92.5 % 92.7 %
Los Angeles 86.0 % 88.3 % 86.2 % 88.6 %
New York 87.2 % 86.8 % 90.7 % 90.9 %
San Francisco 88.4 % 88.5 % 89.3 % 88.8 %
Seattle 87.9 % 88.3 % 90.5 % 90.9 %
Washington, DC 88.1 % 88.7 % 91.5 % 93.0 %
Total Portfolio 88.6 % 88.6 % 91.0 % 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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