Equibles

8-K

BXP, Inc. (BXP)

8-K 2021-04-27 For: 2021-04-27
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 27, 2021

BOSTON PROPERTIES, INC.

BOSTON PROPERTIES LIMITED PARTNERSHIP

(Exact Name of Registrants As Specified in its Charter)

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

800 Boylston Street, Suite 1900, Boston, Massachusetts 02199

(Address of Principal Executive Offices) (Zip Code)

(617) 236-3300

(Registrants’ telephone number, including area code)

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

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

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

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

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

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

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

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

Boston Properties, Inc.:

Emerging growth company ☐

Boston Properties Limited Partnership:

Emerging growth company ☐

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

Boston Properties, Inc. ☐         Boston Properties Limited Partnership ☐

Item 2.02.    Results of Operations and Financial Condition.

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

On April 27, 2021, 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 2021. That press release referred to certain supplemental information that is available on the Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits.

Exhibit No. Description
*99.1 Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter endedMarch31, 2021.
*99.2 Press release dated April 27, 2021.
*101.SCH Inline XBRL Taxonomy Extension Schema Document.
*101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase 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 27, 2021

Document

Exhibit 99.1

image1a.jpg

bxplogosupplementalcovera1.jpg

Supplemental Operating and Financial Data

for the Quarter Ended March 31, 2021

THE COMPANY

Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s complete portfolio totals 51.6 million square feet and 196 properties, including nine properties under construction/redevelopment, and it consists of 177 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned nine consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.

FORWARD-LOOKING STATEMENTS

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

NON-GAAP FINANCIAL MEASURES

This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 57.

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 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 61.

GENERAL INFORMATION

Corporate Headquarters Trading Symbol Investor Relations Inquiries
800 Boylston Street BXP Boston Properties, Inc. Inquiries should be directed to
Suite 1900 800 Boylston Street, Suite 1900 Sara Buda
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 sbuda@bxp.com
(f) 617.236.3311 (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 One Five Nine East 53rd Street, New York, NY)

Q1 2021
Table of contents Page
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OVERVIEW
Company Profile 1
Guidance 2
FINANCIAL INFORMATION
COVID-19 Impact 3
Financial Highlights 4
Consolidated Balance Sheets 6
Consolidated Income Statements 7
Funds From Operations (FFO) 8
Funds Available for Distribution (FAD) 10
Net Operating Income (NOI) 11
Same Property Net Operating Income (NOI) by Reportable Segment 13
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions 15
Acquisitions and Dispositions 16
DEVELOPMENT ACTIVITY
Construction in Progress 17
Land Parcels and Purchase Options 18
LEASING ACTIVITY
Leasing Activity 19
PROPERTY STATISTICS
Portfolio Overview 20
Residential and Hotel Performance 21
In-Service Property Listing 23
Top 20 Tenants Listing and Portfolio Tenant Diversification 27
Occupancy by Location 28
DEBT AND CAPITALIZATION
Capital Structure 29
Debt Analysis 30
Senior Unsecured Debt Covenant Compliance Ratios 31
Net Debt to EBITDAre 32
Debt Ratios 33
JOINT VENTURES
Consolidated Joint Ventures 34
Unconsolidated Joint Ventures 37
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties 41
Boston 42
Los Angeles 44
New York 46
San Francisco 48
Washington, DC 50
CBD 52
Suburban 54
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage 56
Definitions 57
Reconciliations 61
Consolidated Income Statement - Prior Year 67
Funds From Operations (FFO) - Prior Year 68
Funds Available for Distribution (FAD) - Prior Year 69
Q1 2021
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Company profile

SNAPSHOT

(as of March 31, 2021)

Fiscal Year-End December 31
Total Properties (includes unconsolidated joint ventures and properties under development/redevelopment) 196
Total Square Feet (includes unconsolidated joint ventures and properties under development/redevelopment) 51.6 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1, 2 173.7 million
Closing Price, at the end of the quarter $101.26 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield 3.9%
Consolidated Market Capitalization 2 $30.1 billion
BXP’s Share of Market Capitalization 2, 3 $30.1 billion
Senior Debt Ratings BBB+ (S&P); Baa1 (Moody’s)

STRATEGY

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

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

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

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

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

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

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

MANAGEMENT

Board of Directors Management
Joel I. Klein Chairman of the Board Owen D. Thomas Chief Executive Officer
Owen D. Thomas Chief Executive Officer Douglas T. Linde President
Douglas T. Linde President Raymond A. Ritchey Senior Executive Vice President
Kelly A. Ayotte Chair of Compensation Committee Michael E. LaBelle Executive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan
Karen E. Dykstra Peter D. Johnston Executive Vice President, Washington, DC Region
Carol B. Einiger Bryan J. Koop Executive Vice President, Boston Region
Diane J. Hoskins Chair of Sustainability Committee Robert E. Pester Executive Vice President, San Francisco Region
Matthew J. Lustig Chair of Nominating & Corporate Governance Committee John F. Powers Executive Vice President, New York Region
Frank D. Burt Senior Vice President and Chief Legal Officer
David A. Twardock Chair of Audit Committee Donna D. Garesche Senior Vice President and Chief Human Resources Officer
William H. Walton, III
Michael R. Walsh Senior Vice President and Chief Accounting Officer
James J. Whalen Senior Vice President and 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 29.

3For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

Q1 2021
Guidance

The Company’s guidance for the second quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below.  Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on April 27, 2021 and those referenced during the Company’s conference call scheduled for April 28, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), (3) possible future write-offs of accounts receivable and accrued rent balances or (4) possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 59. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Second Quarter 2021
Low High
Projected EPS (diluted) $ 0.54 $ 0.56
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05
Projected FFO per share (diluted) $ 1.59 $ 1.61
Q1 2021
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COVID-19 Impact

Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. Set forth below are the details related to the effects of the COVID-19 pandemic to the Company’s operations for the three months ended March 31, 2021.

(unaudited and dollars in thousands)

For the first quarter of 2021, Revenue was $713,695 and Net income attributable to Boston Properties, Inc. common shareholders was $91,624.

For the first quarter of 2020, Revenue was $752,556 and Net income attributable to Boston Properties, Inc. common shareholders was $497,496.

•Net income attributable to Boston Properties, Inc. common shareholders included approximately $410.2 million of gains on sales of real estate.

BXP’s Share of Revenue1 for the first quarter of 2021 was $680,822, marking a decrease of $39,565 from $720,387 for Q1 2020. Included in BXP’s Share for Q1 2021 is an aggregate of $18,308 of primarily COVID-19 related decreases consisting of:

•$693 of write-offs associated with accrued rent, net (all of which was included within straight-line rent)2,

•$(200) of write-offs associated with accounts receivable, net2,

•$11,622 decrease in parking and other revenue2, and

•$6,193 decrease due to limited occupancy at our only hotel.

Funds from Operations (“FFO”) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)1, 3 for Q1 2021 was $270,531, marking a decrease of $45,669 from $316,200 for Q1 2020. Included in Q1 2021 is an aggregate of $13,538 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$693 of write-offs associated with accrued rent, net (all of which was included within straight-line rent)2,

•$(200) of write-offs associated with accounts receivable, net2,

•$11,622 decrease in parking and other revenue2, and

•$1,423 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income)1, 4 was $409,090, marking a decrease of $24,185 from $433,275 for Q1 2020. Included in Q1 2021 is an aggregate of $13,131 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$693 of write-offs associated with accrued rent, net (all of which was included within straight-line rent)2,

•$(200) of write-offs associated with accounts receivable, net2,

•$11,215 decrease in parking and other revenue2, and

•$1,423 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income) - cash1, 4 was $388,703, marking a decrease of $15,614 from $404,317 for Q1 2020. Included in Q1 2021 is an aggregate of $21,573 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$9,135 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$(200) of write-offs associated with accounts receivable, net2,

•$11,215 decrease in parking and other revenue2, and

•$1,423 decrease in NOI due to limited occupancy at our only hotel.

Funds Available for Distribution (“FAD”)1, 5 was $181,922 for Q1 2021, a decrease of $53,968 from $235,890 for Q1 2020. The distributions to common shareholders and unitholders (excluding any special distributions) were $170,240 for Q1 2021. Included in Q1 2021 is an aggregate of $21,980 of BXP’s Share of primarily COVID-19 related decreases consisting of:

•$9,135 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,

•$(200) of write-offs associated with accounts receivable, net2,

•$11,622 decrease in parking and other revenue2, and

•$1,423 decrease in NOI due to limited occupancy at our only hotel.

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2For additional information, see page 61.

3For quantitative reconciliations of FFO to Net Income attributable to Boston Properties, Inc. common shareholders for the three months ended March 31, 2021 and March 31, 2020, see pages 8 and 68, respectively.

4For a quantitative reconciliation of BXP’s Share of Same Property NOI (excluding termination income) to Net income attributable to Boston Properties, Inc. common shareholders and BXP’s Share of Same Property NOI (excluding termination income) - cash to Net income attributable to Boston Properties, Inc. common shareholders for the three months ended March 31, 2021 and March 31, 2020, see pages 11 and 12.

5For quantitative reconciliations of FAD for the three months ended March 31, 2021 and March 31, 2020, see pages 10 and 69, respectively.

Q1 2021
Financial highlights

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

Three Months Ended
31-Mar-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.59 $ 0.05
FFO attributable to Boston Properties, Inc. common shareholders 1 $ 243,803 $ 213,108
Diluted FFO per share 1 $ 1.56 $ 1.37
Dividends per common share $ 0.98 $ 0.98
Funds available for distribution to common shareholders and common unitholders (FAD) 2 $ 181,922 $ 161,274
Selected items:
Revenue $ 713,695 $ 665,089
Recoveries from tenants $ 105,866 $ 99,562
Service income from tenants $ 1,037 $ 1,061
BXP’s Share of revenue 3 $ 680,822 $ 625,972
BXP’s Share of straight-line rent 3, 4 $ 13,601 $ (465)
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3 $ (693) $ (39,741)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3 $ 200 $ (333)
BXP’s Share of fair value lease revenue 3, 5 $ 1,206 $ 1,598
BXP’s Share of termination income 3 $ 4,275 $ 1,227
Ground rent expense $ 3,449 $ 3,451
Capitalized interest $ 12,032 $ 12,552
Capitalized wages $ 3,307 $ 3,303
Income (loss) from unconsolidated joint ventures 6 $ 5,225 $ (79,700)
BXP’s share of FFO from unconsolidated joint ventures 7 $ 13,380 $ 1,980
Net income attributable to noncontrolling interests in property partnerships $ 16,467 $ 13,980
FFO attributable to noncontrolling interests in property partnerships 8 $ 32,924 $ 29,890
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets) $ 3,156 $ 4,365
Below-market rents (included within Other Liabilities) $ 25,539 $ 27,401
Accrued rental income liability (included within Other Liabilities) $ 138,761 $ 125,610
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 9 3.95 3.38
Interest Coverage Ratio (including capitalized interest) 9 3.52 3.04
Fixed Charge Coverage Ratio 9 2.75 2.44
BXP’s Share of Net Debt to BXP’s Share of EBITDAre 10 7.62 8.07
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 11 (5.6) % (15.1) %
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 11 (3.9) % (7.2) %
FAD Payout Ratio 2 93.58 % 105.24 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 63.4 % 60.9 %
Occupancy of In-Service Properties 88.7 % 90.1 %
Capitalization:
Consolidated Debt $ 12,536,264 $ 13,047,758
BXP’s Share of Debt 12 $ 12,508,876 $ 13,006,767
Consolidated Market Capitalization $ 30,120,367 $ 29,610,145
Consolidated Debt/Consolidated Market Capitalization 41.62 % 44.07 %
BXP’s Share of Market Capitalization 12 $ 30,092,979 $ 29,569,154
BXP’s Share of Debt/BXP’s Share of Market Capitalization 12 41.57 % 43.99 %

_____________

1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 8.

2For a quantitative reconciliation of FAD, see page 10. 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 57.

4For the three months ended March 31, 2021, includes the straight-line impact of approximately $9,354 related to deferred revenue from a tenant.

5Represents 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.

6For the three months ended December 31, 2020, includes a $60,524 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. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

7For a quantitative reconciliation for the three months ended March 31, 2021, see page 39.

8For a quantitative reconciliation for the three months ended March 31, 2021, see page 35.

Q1 2021
Financial highlights (continued)

9For a quantitative reconciliation for the three months ended March 31, 2021 and December 31, 2020, see page 33.

10For the three months ended December 31, 2020, includes $158,964 (or $39,741 annualized) of write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x for the three months ended December 31, 2020. For additional information and a quantitative reconciliation for the three months ended March 31, 2021 and December 31, 2020, see page 32.

11For a quantitative reconciliation for the three months ended March 31, 2021, see page 13.

12For a quantitative reconciliation for March 31, 2021, see page 29.

Q1 2021
Consolidated Balance Sheets

(unaudited and in thousands)

31-Mar-21 31-Dec-20
ASSETS
Real estate $ 21,955,916 $ 21,649,383
Construction in progress 794,039 868,773
Land held for future development 421,349 450,954
Right of use assets - finance leases 237,017 237,393
Right of use assets - operating leases 144,143 146,406
Less accumulated depreciation (5,679,441) (5,534,102)
Total real estate 17,873,023 17,818,807
Cash and cash equivalents 697,369 1,668,742
Cash held in escrows 1 251,814 50,587
Investments in securities 39,002 39,457
Tenant and other receivables, net 51,271 77,411
Related party note receivable, net 77,640 77,552
Notes receivable, net 18,891 18,729
Accrued rental income, net 1,145,066 1,122,502
Deferred charges, net 622,649 640,085
Prepaid expenses and other assets 129,102 33,840
Investments in unconsolidated joint ventures 1,307,725 1,310,478
Total assets $ 22,213,552 $ 22,858,190
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,904,672 $ 2,909,081
Unsecured senior notes, net 9,631,592 9,639,287
Unsecured line of credit — —
Unsecured term loan, net — 499,390
Lease liabilities- finance leases 239,361 236,492
Lease liabilities - operating leases 200,383 201,713
Accounts payable and accrued expenses 260,875 336,264
Dividends and distributions payable 171,003 171,082
Accrued interest payable 76,675 106,288
Preferred stock redemption liability 1 200,000 —
Other liabilities 399,965 412,084
Total liabilities 14,084,526 14,511,681
Commitments and contingencies — —
Redeemable deferred stock units 7,679 6,897
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 20201 — 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,153,100 and 155,797,725 issued and 156,074,200 and 155,718,825 outstanding at March 31, 2021 and December 31, 2020, respectively 1,561 1,557
Additional paid-in capital 6,392,923 6,356,791
Dividends in excess of earnings (570,982) (509,653)
Treasury common stock at cost, 78,900 shares at March 31, 2021 and December 31, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (45,139) (49,890)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,775,641 5,996,083
Noncontrolling interests:
Common units of the Operating Partnership 620,106 616,596
Property partnerships 1,725,600 1,726,933
Total equity 8,121,347 8,339,612
Total liabilities and equity $ 22,213,552 $ 22,858,190

_____________

1On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.

Q1 2021
Consolidated Income Statements 1

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-21 31-Dec-20
Revenue
Lease $ 685,817 $ 639,357
Parking and other 14,494 15,903
Insurance proceeds 2 2,444 —
Hotel revenue 632 464
Development and management services 6,803 6,356
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,009
Total revenue 713,695 665,089
Expenses
Operating 118,516 117,891
Real estate taxes 136,395 138,308
Demolition costs 18 (5)
Restoration expenses related to insurance claim 2 2,460 —
Hotel operating 2,051 1,178
General and administrative 3 44,959 31,053
Payroll and related costs from management services contracts 3,505 3,009
Transaction costs 331 277
Depreciation and amortization 176,565 168,013
Total expenses 484,800 459,724
Other income (expense)
Income (loss) from unconsolidated joint ventures 4 5,225 (79,700)
Gains on sales of real estate — 5,259
Gains from investments in securities 3 1,659 4,296
Interest and other income (loss) 1,168 1,676
Losses from early extinguishments of debt (898) —
Interest expense (107,902) (111,991)
Net income 128,147 24,905
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (16,467) (13,980)
Noncontrolling interest - common units of the Operating Partnership 5 (11,084) (990)
Net income attributable to Boston Properties, Inc. 100,596 9,935
Preferred dividends 6 (2,560) (2,625)
Preferred stock redemption charge 6 (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 0.59 $ 0.05
Net income attributable to Boston Properties, Inc. per share - diluted $ 0.59 $ 0.05

_____________

1For information relating to the impact of COVID-19 on the Company’s performance, see pages 3 and 61.

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

3General and administrative expense includes $1.7 million and $4.3 million and Gains from investments in securities include $1.7 million and $4.3 million for the three months ended March 31, 2021 and December 31, 2020, respectively, related to the Company’s deferred compensation plan.

4For the three months ended December 31, 2020, includes a $60,524 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. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.

5For additional detail, see page 8.

6On March 2, 2021, Boston Properties, Inc. issued a redemption notice for the Series B Cumulative Redeemable Preferred Stock and recorded it as a liability. On March 31, 2021, Boston Properties transferred the full redemption price to the redemption agent and recorded the amount within Cash held in escrows. On April 1, 2021, the redemption agent paid the redemption price to the holders of the Series B Preferred Stock and completed the redemption.

Q1 2021
Funds from operations (FFO) 1

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

Three Months Ended
31-Mar-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
Add:
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Noncontrolling interest - common units of the Operating Partnership 11,084 990
Noncontrolling interests in property partnerships 16,467 13,980
Net income 128,147 24,905
Add:
Depreciation and amortization expense 176,565 168,013
Noncontrolling interests in property partnerships' share of depreciation and amortization 2 (16,457) (15,910)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3 18,412 21,168
Corporate-related depreciation and amortization (440) (441)
Impairment loss on investment in unconsolidated joint venture — 60,524
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures 10,257 12
Gains on sales of real estate — 5,259
Noncontrolling interests in property partnerships 16,467 13,980
Preferred dividends 2,560 2,625
Preferred stock redemption charge 6,412 —
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 4 270,531 236,383
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 26,728 23,275
FFO attributable to Boston Properties, Inc. common shareholders $ 243,803 $ 213,108
Boston Properties, Inc.’s percentage share of Basic FFO 90.12 % 90.15 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 9.88 % 9.85 %
Basic FFO per share $ 1.56 $ 1.37
Weighted average shares outstanding - basic 155,928 155,682
Diluted FFO per share $ 1.56 $ 1.37
Weighted average shares outstanding - diluted 156,099 155,731

RECONCILIATION TO DILUTED FFO

Three Months Ended
31-Mar-21 31-Dec-20
Basic FFO $ 270,531 $ 236,383
Add:
Effect of dilutive securities - stock-based compensation — —
Diluted FFO 270,531 236,383
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO 26,693 23,268
Boston Properties, Inc.’s share of Diluted FFO $ 243,838 $ 213,115

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO

Three Months Ended
31-Mar-21 31-Dec-20
Shares/units for Basic FFO 173,017 172,685
Add:
Effect of dilutive securities - stock-based compensation (shares/units) 171 49
Shares/units for Diluted FFO 173,188 172,734
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) 17,089 17,003
Boston Properties, Inc.’s share of shares/units for Diluted FFO 156,099 155,731
Boston Properties, Inc.’s percentage share of Diluted FFO 90.13 % 90.16 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2For a quantitative reconciliation for the three months ended March 31, 2021, see page 35.

Q1 2021
Funds from operations (FFO) (continued) 1

3For a quantitative reconciliation for the three months ended March 31, 2021, see page 39.

4Basic FFO for Q1 2021 decreased by $45,669 from $316,200 for Q1 2020. For a reconciliation of Basic FFO to Net income attributable to Boston Properties, Inc. common shareholders for Q1 2020, see page 68. Included in the Q1 2021 amounts are BXP’s Share of: $693 of write-offs associated with accrued rent, net (all of which was included within straight-line rent), $(200) of write-offs associated with accounts receivable, net, a $11,622 decrease in parking and other revenue and a $1,423 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q1 2021 Basic FFO by $13,538. For additional information, see page 61.

Q1 2021
Funds available for distributions (FAD) 1

(dollars in thousands)

Three Months Ended
31-Mar-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
Add:
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Noncontrolling interest - common units of the Operating Partnership 11,084 990
Noncontrolling interests in property partnerships 16,467 13,980
Net income 128,147 24,905
Add:
Depreciation and amortization expense 176,565 168,013
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2 (16,457) (15,910)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3 18,412 21,168
Corporate-related depreciation and amortization (440) (441)
Impairment loss on investment in unconsolidated joint venture — 60,524
Less:
Gain on sale of investment included within income (loss) from unconsolidated joint ventures 10,257 12
Gains on sales of real estate — 5,259
Noncontrolling interests in property partnerships 16,467 13,980
Preferred dividends 2,560 2,625
Preferred stock redemption charge 6,412 —
Basic FFO 270,531 236,383
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4 3,026 2,580
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of straight-line ground rent expense adjustment 1, 5 1,166 1,216
Stock-based compensation 19,806 7,990
Non-real estate depreciation 440 441
Unearned portion of capitalized fees from consolidated joint ventures 6 311 704
Non-cash losses from early extinguishments of debt 898 —
Preferred stock redemption charge 6,412 —
Less:
BXP’s Share of straight-line rent 1 13,601 (465)
BXP’s Share of fair value lease revenue 1, 7 1,206 1,598
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 — (11)
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 77,681 61,601
BXP’s Share of maintenance capital expenditures 1, 8 29,595 26,730
Hotel improvements, equipment upgrades and replacements 31 33
Funds available for distribution to common shareholders and common unitholders (FAD) 9 (A) $ 181,922 $ 161,274
Distributions to common shareholders and unitholders (excluding any special distributions) (B) $ 170,240 $ 169,719
FAD Payout Ratio1 (B÷A) 93.58 % 105.24 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2For a quantitative reconciliation for the three months ended March 31, 2021, see page 35.

3For a quantitative reconciliation for the three months ended March 31, 2021, see page 39.

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

5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 4.

6See page 63 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.

9FAD for Q1 2021 decreased by $53,968 from $235,890 for Q1 2020. For a reconciliation of FAD to Net income attributable to Boston Properties, Inc. common shareholders for Q1 2020, see page 69. Included in the Q1 2021 amounts are BXP’s Share of: $(200) of write-offs associated with accounts receivable, net, a $9,135 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, a $11,622 decrease in parking and other revenue and a $1,423 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q1 2021 FAD by $21,980. For additional information, see page 61.

Q1 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)

(in thousands)

Three Months Ended
31-Mar-21 31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Net income attributable to Boston Properties, Inc. 100,596 500,121
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,084 57,539
Noncontrolling interest in property partnerships 16,467 19,486
Net income 128,147 577,146
Add:
Interest expense 107,902 101,591
Losses from early extinguishments of debt 898 —
Depreciation and amortization expense 176,565 171,094
Transaction costs 331 615
Payroll and related costs from management services contracts 3,505 3,237
General and administrative expense 44,959 36,454
Less:
Interest and other income (loss) 1,168 3,017
Gains (losses) from investments in securities 1,659 (5,445)
Gains on sales of real estate — 410,165
Income (loss) from unconsolidated joint ventures 5,225 (369)
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,237
Development and management services revenue 6,803 7,879
Net Operating Income (NOI) 443,947 471,653
Add:
BXP’s share of NOI from unconsolidated joint ventures 1 24,795 28,758
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2 44,376 47,661
BXP’s Share of NOI 424,366 452,750
Less:
Termination income 4,269 2,399
BXP’s share of termination income from unconsolidated joint ventures 1 — —
Add:
Partners’ share of termination income from consolidated joint ventures 2 (6) 238
BXP’s Share of NOI (excluding termination income) $ 420,091 $ 450,589
Net Operating Income (NOI) $ 443,947 $ 471,653
Less:
Termination income 4,269 2,399
NOI from non Same Properties (excluding termination income) 3 8,307 12,955
Same Property NOI (excluding termination income) 431,371 456,299
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2 44,382 47,423
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3 880 136
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1 24,795 28,758
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3 3,574 4,495
BXP’s Share of Same Property NOI (excluding termination income) $ 409,090 $ 433,275

_____________

1For a quantitative reconciliation for the three months ended March 31, 2021, see page 66.

2For a quantitative reconciliation for the three months ended March 31, 2021, see pages 63-64.

3Pages 23-26 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, 2021 and therefore are no longer a part of the Company’s property portfolio.

Q1 2021
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)

Three Months Ended
31-Mar-21 31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Net income attributable to Boston Properties, Inc. 100,596 500,121
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership 11,084 57,539
Noncontrolling interest in property partnerships 16,467 19,486
Net income 128,147 577,146
Add:
Interest expense 107,902 101,591
Losses from early extinguishments of debt 898 —
Depreciation and amortization expense 176,565 171,094
Transaction costs 331 615
Payroll and related costs from management services contracts 3,505 3,237
General and administrative expense 44,959 36,454
Less:
Interest and other income (loss) 1,168 3,017
Gains (losses) from investments in securities 1,659 (5,445)
Gains on sales of real estate — 410,165
Income (loss) from unconsolidated joint ventures 5,225 (369)
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,237
Development and management services revenue 6,803 7,879
Net Operating Income (NOI) 443,947 471,653
Less:
Straight-line rent 1 7,730 31,430
Fair value lease revenue 653 2,991
Termination income 4,269 2,399
Add:
Straight-line ground rent expense adjustment 2 765 811
Lease transaction costs that qualify as rent inducements 3 1,859 2,399
NOI - cash (excluding termination income) 433,919 438,043
Less:
NOI - cash from non Same Properties (excluding termination income) 4 24,220 12,995
Same Property NOI - cash (excluding termination income) 409,699 425,048
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 5 49,973 42,050
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) 4 8,517 205
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 6 25,363 25,020
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 4 4,903 3,906
BXP’s Share of Same Property NOI - cash (excluding termination income) $ 388,703 $ 404,317

_____________

1For the three months ended March 31, 2021, includes the straight-line impact of approximately $17,007 related to deferred revenue from a tenant.

2In 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 $167 and $165 for the three months ended March 31, 2021 and 2020, respectively. As of March 31, 2021, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.

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 Company’s FAD calculation on page 10.

4Pages 23-26 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, 2021 and therefore are no longer a part of the Company’s property portfolio.

5For a quantitative reconciliation for the three months ended March 31, 2021, see page 64.

6For a quantitative reconciliation for the three months ended March 31, 2021, see page 66.

Q1 2021
Same property net operating income (NOI) by reportable segment

(dollars in thousands)

Office 1 Hotel & Residential
Three Months Ended % Three Months Ended %
31-Mar-21 31-Mar-20 Change Change 31-Mar-21 31-Mar-20 Change Change
Rental Revenue 2 $ 678,526 $ 703,451 $ 9,486 $ 16,781
Less: Termination income 4,269 2,385 — —
Rental revenue (excluding termination income) 2 674,257 701,066 (3.8) % 9,486 16,781 (43.5) %
Less: Operating expenses and real estate taxes 245,880 250,663 (4,783) (1.9) % 6,492 10,885 (4,393) (40.4) %
NOI (excluding termination income) 2, 3 $ 428,377 $ 450,403 (4.9) % $ 2,994 $ 5,896 (49.2) %
Rental revenue (excluding termination income) 2 $ 674,257 $ 701,066 (3.8) % $ 9,486 $ 16,781 (43.5) %
Less: Straight-line rent and fair value lease revenue 24,264 34,459 (10,195) (29.6) % 33 (139) 172 123.7 %
Add: Lease transaction costs that qualify as rent inducements 4 1,859 2,258 (399) (17.7) % — — — — %
Subtotal 651,852 668,865 (17,013) (2.5) % 9,453 16,920 (7,467) (44.1) %
Less: Operating expenses and real estate taxes 245,880 250,663 (4,783) (1.9) % 6,492 10,885 (4,393) (40.4) %
Add: Straight-line ground rent expense 5 766 811 (45) (5.5) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 406,738 $ 419,013 (2.9) % $ 2,961 $ 6,035 (50.9) %
Consolidated Total 1, 6 (A) BXP’s share of Unconsolidated Joint Ventures 6 (B)
Three Months Ended % Three Months Ended %
31-Mar-21 31-Mar-20 Change Change 31-Mar-21 31-Mar-20 Change Change
Rental Revenue 2 $ 688,012 $ 720,232 $ 33,346 $ 37,319
Less: Termination income 4,269 2,385 — —
Rental revenue (excluding termination income) 2 683,743 717,847 (4.8) % 33,346 37,319 (10.6) %
Less: Operating expenses and real estate taxes 252,372 261,548 (9,176) (3.5) % 12,125 13,056 (931) (7.1) %
NOI (excluding termination income) 2, 3 $ 431,371 $ 456,299 (5.5) % $ 21,221 $ 24,263 (12.5) %
Rental revenue (excluding termination income) 2 $ 683,743 $ 717,847 (4.8) % $ 33,346 $ 37,319 (10.6) %
Less: Straight-line rent and fair value lease revenue 24,297 34,320 (10,023) (29.2) % 1,031 3,991 (2,960) (74.2) %
Add: Lease transaction costs that qualify as rent inducements 4 1,859 2,258 (399) (17.7) % 270 842 (572) (67.9) %
Subtotal $ 661,305 $ 685,785 (24,480) (3.6) % 32,585 34,170 (1,585) (4.6) %
Less: Operating expenses and real estate taxes 252,372 261,548 (9,176) (3.5) % 12,125 13,056 (931) (7.1) %
Add: Straight-line ground rent expense 5 766 811 (45) (5.5) % — — — — %
NOI - cash (excluding termination income) 2, 3 $ 409,699 $ 425,048 (3.6) % $ 20,460 $ 21,114 (3.1) %
Partners’ share of Consolidated Joint Ventures 6 (C) BXP’s Share 3, 6, 7, 8, 9
Three Months Ended % Three Months Ended %
31-Mar-21 31-Mar-20 Change Change 31-Mar-21 31-Mar-20 Change Change
Rental Revenue 2 $ 74,072 $ 77,178 $ 647,286 $ 680,373
Less: Termination income (6) 238 4,275 2,147
Rental revenue (excluding termination income) 2 74,078 76,940 (3.7) % 643,011 678,226 (5.2) %
Less: Operating expenses and real estate taxes 30,576 29,653 923 3.1 % 233,921 244,951 (11,030) (4.5) %
NOI (excluding termination income) 2, 3 $ 43,502 $ 47,287 (8.0) % $ 409,090 $ 433,275 (5.6) %
Rental revenue (excluding termination income) 2 $ 74,078 $ 76,940 (3.7) % $ 643,011 $ 678,226 (5.2) %
Less: Straight-line rent and fair value lease revenue 2,297 5,668 (3,371) (59.5) % 23,031 32,643 (9,612) (29.4) %
Add: Lease transaction costs that qualify as rent inducements 4 251 226 25 11.1 % 1,878 2,874 (996) (34.7) %
Subtotal 72,032 71,498 534 0.7 % 621,858 648,457 (26,599) (4.1) %
Less: Operating expenses and real estate taxes 30,576 29,653 923 3.1 % 233,921 244,951 (11,030) (4.5) %
Add: Straight-line ground rent expense 5 — — — — % 766 811 (45) (5.5) %
NOI - cash (excluding termination income) 2, 3 $ 41,456 $ 41,845 (0.9) % $ 388,703 $ 404,317 (3.9) %

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 57.

3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 11-12.

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 Company’s FAD calculation on page 10.

5Excludes the straight-line impact of approximately $167 and $165 for the three months ended March 31, 2021 and 2020, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 12.

Q1 2021
Same property net operating income (NOI) by reportable segment (continued)

6For the three months ended March 31, 2021, includes write-offs associated with accounts receivable, net of approximately $(208) for Consolidated Total, $1 for Partners’ share of Consolidated Joint Ventures, $7 for BXP’s share of Unconsolidated Joint Ventures and $(200) for BXP’s Share, primarily related to COVID-19. For the three months ended March 31, 2021, includes write-offs associated with straight-line rent, net of approximately $586 for Consolidated Total, $31 for Partners’ share of Consolidated Joint Ventures, $138 for BXP’s share of Unconsolidated Joint Ventures and $693 for BXP’s Share, primarily related to COVID-19. For additional information, see page 61.

7BXP’s Share equals (A) + (B) - (C).

8BXP’s Share of Same Store NOI (excluding termination income) was $24,185 less, compared to Q1 2020. Included in Q1 2021 are BXP’s Share of $693 of write-offs associated with accrued rent, net, $(200) of write-offs associated with accounts receivable, net, $11,215 decrease in parking and other revenue and a $1,423 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI (excluding termination income) by $13,131. For additional information, see page 61.

9BXP’s Share of Same Store NOI-cash (excluding termination income) was $15,614 less, compared to Q1 2020. Included in Q1 2021 are BXP’s Share of $(200) of write-offs associated with accounts receivable, net, $9,135 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, $11,215 decrease in parking and other revenue and a $1,423 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI-cash (excluding termination income) by $21,573. For additional information, see page 61.

Q1 2021
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)

CAPITAL EXPENDITURES

Three Months Ended
31-Mar-21 31-Dec-20
Maintenance capital expenditures $ 30,789 $ 27,253
Planned capital expenditures associated with acquisition properties — —
Repositioning capital expenditures 11 86
Hotel improvements, equipment upgrades and replacements 31 33
Subtotal 30,831 27,372
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs) 323 36
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs 1,551 1,411
BXP’s share of repositioning capital expenditures from unconsolidated JVs — 322
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs 1,517 559
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs — —
Partners’ share of repositioning capital expenditures from consolidated JVs — (26)
BXP’s Share of Capital Expenditures 1 $ 31,188 $ 28,608

2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2

Three Months Ended
31-Mar-21 31-Dec-20
Square feet 1,095,513 935,144
Tenant improvements and lease commissions PSF $ 82.44 $ 68.87

___________________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2Includes 100% of unconsolidated joint ventures.

Q1 2021
Acquisitions and dispositions

For the period from January 1, 2021 through March 31, 2021

(dollars in thousands)

ACQUISITIONS

Investment
Property Location Date Acquired Square Feet Initial Anticipated Future Total In-service Leased (%)
N/A — $ — $ — $ — N/A
Total Acquisitions — $ — $ — $ — — %

DISPOSITIONS

Property Location Date Disposed Square Feet Gross Sales Price Net Cash Proceeds Book Gain
Annapolis Junction Buildings Six and Seven 1 Annapolis, MD March 30, 2021 246,568 $ 65,948 $ 17,600 $ 10,257
Total Dispositions 246,568 $ 65,948 $ 17,600 $ 10,257

________________

1Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million. With the sale of Annapolis Junction Buildings Six and Seven, the Company no longer has any assets in Annapolis, Maryland.

Q1 2021
Construction in progress

as of March 31, 2021

(dollars in thousands)

CONSTRUCTION IN PROGRESS 1

Actual/Estimated BXP’s share
Initial Occupancy Stabilization Date Square Feet Investment to Date 2 Estimated Total Investment 2 Total Financing Amount Drawn at 3/31/2021 Estimated Future Equity Requirement 2 Percentage Leased 3 Percentage placed in-service 4 Net Operating Income (Loss) 5 (BXP’s share)
Construction Properties Location
Office
325 Main Street Q3 2022 Q3 2022 Cambridge, MA 420,000 $ 217,456 $ 418,400 $ — $ — $ 200,944 90 % — % N/A
100 Causeway Street (50% ownership) Q3 2021 Q3 2022 Boston, MA 632,000 202,068 267,300 200,000 125,306 — 94 % — % N/A
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership) Q2 2022 Q2 2022 Bethesda, MD 734,000 159,250 198,900 127,500 90,229 2,379 100 % — % N/A
Reston Next Q1 2022 Q4 2023 Reston, VA 1,062,000 422,881 715,300 — — 292,419 85 % — % N/A
2100 Pennsylvania Avenue Q3 2022 Q3 2024 Washington, DC 480,000 157,235 356,100 — — 198,865 56 % — % N/A
Total Office Properties under Construction 3,328,000 1,158,890 1,956,000 327,500 215,535 694,607 86 % — % —
Lab/Life Sciences
200 West Street (Redevelopment) 6 Q4 2021 Q4 2021 Waltham, MA 138,000 18,116 47,800 — — 29,684 100 % — % N/A
880 Winter Street (Redevelopment) Q3 2023 Q2 2024 Waltham, MA 224,000 1,634 108,000 — — 106,366 — % — % N/A
751 Gateway (49% ownership) Q1 2023 Q3 2024 South San Francisco, CA 229,000 15,420 127,600 — — 112,180 — % — % N/A
180 CityPoint Q1 2024 Q4 2024 Waltham, MA 329,000 20,382 274,700 — — 254,318 — % — % N/A
Total Lab/Life Sciences Properties under Construction 920,000 55,552 558,100 — — 502,548 15 % — % —
Other
The Prudential Center Observatory (Redevelopment) Q2 2023 N/A Boston, MA 59,000 25,018 182,300 — — 157,282 N/A — %
Total Properties Under Construction 4,307,000 $ 1,239,460 $ 2,696,400 $ 327,500 $ 215,535 $ 1,354,437 71 % 7 — % —

PROJECTS FULLY PLACED IN-SERVICE DURING 2021

Actual/Estimated BXP’s share
Estimated Total Investment 2 Amount Drawn at 3/31/2021 Estimated Future Equity Requirement 2 Net Operating Income (Loss) 5
Initial Occupancy Stabilization Date Square feet Investment to Date 2 Total Financing Percentage Leased 3
Location
One Five Nine East 53rd (55% Ownership) Q1 2021 Q1 2021 New York, NY 220,000 $ 139,480 $ 150,000 $ — $ — $ 10,520 96 % $ 1,957
Total Projects Fully Placed In-Service 220,000 $ 139,480 $ 150,000 $ — $ — $ 10,520 96 % $ 1,957

_____________

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 23, 2021, including leases with future commencement dates.

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

5Amounts represent Net Operating Income (Loss) for the three months ended March 31, 2021. See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

6Represents a portion of the property under redevelopment for conversion to laboratory space.

7 Total percentage leased excludes Other.

Q1 2021
Land parcels and purchase options

as of March 31, 2021

OWNED LAND PARCELS

Location Approximate Developable Square Feet 1
Reston, VA 2 2,938,000
San Jose, CA 3 2,199,000
New York, NY (25% Ownership) 2,000,000
Princeton, NJ 1,650,000
San Jose, CA (55% Ownership) 1,078,000
San Francisco, CA 850,000
Washington, DC (50% ownership) 520,000
Springfield, VA 422,000
South San Francisco, CA (50% Ownership) 411,000
Santa Clara, CA 3 414,000
Dulles, VA 310,000
Waltham, MA 276,000
El Segundo, CA (50% Ownership) 275,000
Total 13,343,000

VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS

Location Approximate Developable Square Feet 1
Cambridge, MA 4 1,400,000
Boston, MA 1,300,000
Waltham, MA 5 1,200,000
Total 3,900,000

__________________

1Represents 100%.

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

3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 25.

4 Represents development rights secured in exchange for developing a utility substation in Kendall Square.

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

Q1 2021
Leasing activity

for the three months ended March 31, 2021

ALL IN-SERVICE PROPERTIES

Net (increase)/decrease in available space (SF) Total
Vacant space available at the beginning of the period 4,517,385
Less:
Property dispositions/properties taken out of service 1 104,613
Add:
Properties placed (and partially placed) in-service 2 227,276
Leases expiring or terminated during the period 1,788,666
Total space available for lease 6,428,714
1st generation leases 201,402
2nd generation leases with new tenants 602,497
2nd generation lease renewals 493,016
Total space leased 1,296,915
Vacant space available for lease at the end of the period 5,131,799
Net (increase)/decrease in available space (614,414)
Second generation leasing information: 3
Leases commencing during the period (SF) 1,095,513
Weighted average lease term (months) 84
Weighted average free rent period (days) 137
Total transaction costs per square foot 4 82.44
Increase (decrease) in gross rents 5 9.47
Increase (decrease) in net rents 6 14.67

All values are in US Dollars.

All leases (SF) Incr (decr) in 2nd generation cash rents 6 Total square feet of leases executed in the quarter 8, 9
1st generation 2nd generation total 7 gross 5 net 6
Boston 6,076 251,939 258,015 25.12 % 42.76 % 164,734
Los Angeles — 42,936 42,936 14.37 % 24.33 % 83,080
New York 195,326 194,688 390,014 (0.05) % (0.09) % 50,438
San Francisco — 40,131 40,131 13.46 % 18.32 % 167,276
Washington, DC — 565,819 565,819 2.74 % 4.03 % 126,287
Total / Weighted Average 201,402 1,095,513 1,296,915 9.47 % 14.67 % 591,815

_____________

1Total square feet of property disposition in Q1 2021 consists of 29,595 square feet due to sale of Annapolis Junction Building Six. Total square feet of properties taken out of service in Q1 2021 consists of 34,290 square feet at 880 Winter Street and 40,728 square feet at 800 Boylston Street - Prudential Center, both due to redevelopment.

2Total square feet of properties placed (and partially placed) in-service in Q1 2021 consists of 195,326 square feet of office and 31,950 square feet of retail at One Five Nine East 53rd in New York City.

3Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,095,513 square feet of second generation leases that commenced in Q1 2021, leases for 1,011,835 square feet were signed in prior periods.

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

5Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 735,432 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

6Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 735,432 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

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

8Amounts shown in this column exclude COVID-19 related lease modifications covering an aggregate of approximately 208,000 square feet that were executed in the first quarter of 2021 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $3.3 million (BXP’s Share) in the first quarter. Of these lease modifications, the lease terms associated with 67,387 square feet were extended for a period of 12 or more months. In addition, COVID-19 related lease modifications from the second through fourth quarters of 2020 provide cash rent and/or abatement in the aggregate amount of approximately $6.9 million (BXP’s Share) in the first quarter representing BXP’s Share. For additional information, see page 61.

9Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 86,652.

Q1 2021
Portfolio overview

for the three months ended March 31, 2021

(dollars in thousands)

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

Office Retail Residential Hotel Total
Boston 13,570,286 1,064,888 550,114 330,000 15,515,288
Los Angeles 2,180,692 124,932 — — 2,305,624
New York 11,355,478 418,738 — — 11,774,216
San Francisco 7,498,378 343,810 318,171 — 8,160,359
Washington, DC 8,060,317 661,581 822,436 — 9,544,334
Total 42,665,151 2,613,949 1,690,721 330,000 47,299,821
% of Total 90.20 % 5.53 % 3.57 % 0.70 % 100.00 %

Rental revenue of in-service properties by unit type 1

Office Retail 3 Residential Hotel 4 Total
Consolidated $ 637,504 $ 56,843 $ 8,486 $ 554 $ 703,387
Less:
Partners’ share from consolidated joint ventures 5 66,915 8,361 — — 75,276
Add:
BXP’s share from unconsolidated joint ventures 6 38,562 2,588 1,139 — 42,289
BXP’s Share of Rental revenue 1 $ 609,151 $ 51,070 $ 9,625 $ 554 $ 670,400
% of Total 90.86 % 7.62 % 1.44 % 0.08 % 100.00 %

Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 7

CBD Suburban Total
Boston 25.57 % 7.53 % 33.10 %
Los Angeles 3.38 % — % 3.38 %
New York 25.19 % 2.36 % 27.55 %
San Francisco 18.89 % 3.06 % 21.95 %
Washington, DC 5.06 % 8.96 % 14.02 %
Total 78.09 % 21.91 % 100.00 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

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 23-26.

3Includes the impact of write-offs associated with accounts receivable, net of approximately $(208), $1, $7 and $(200) for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent, net of approximately $586, $31, $138 and $693 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.

4Excludes approximately $78 of revenue from retail tenants that is included in Retail.

5See page 64 for additional information.

6See page 66 for additional information.

7BXP’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. common shareholders to BXP’s Share of NOI (excluding termination income), see page 11.

Q1 2021
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS

Residential 1 Hotel 2
Three Months Ended Three Months Ended
31-Mar-21 31-Dec-20 31-Mar-21 31-Dec-20
Rental Revenue 3 $ 9,175 $ 9,069 $ 632 $ 464
Less: Operating expenses and real estate taxes 6,127 5,754 2,051 1,178
Net Operating Income (Loss) (NOI) 3 3,048 3,315 (1,419) (714)
Add: BXP’s share of NOI from unconsolidated joint ventures 40 449 N/A N/A
BXP’s Share of NOI 3 $ 3,088 $ 3,764 $ (1,419) $ (714)
Rental Revenue 3 $ 9,175 $ 9,069 $ 632 $ 464
Less: Straight line rent and fair value lease revenue 38 248 (5) (6)
Subtotal 9,137 8,821 637 470
Less: Operating expenses and real estate taxes 6,127 5,754 2,051 1,178
NOI - cash basis 3 3,010 3,067 (1,414) (708)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures 40 449 N/A N/A
BXP’s Share of NOI - cash basis 3 $ 3,050 $ 3,516 $ (1,414) $ (708)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-21 31-Mar-20
BOSTON
Hub50House (50% ownership), Boston, MA 3, 4 440
Average Monthly Rental Rate $ 3,260 $ 3,219 1.27 %
Average Rental Rate Per Occupied Square Foot $ 4.52 $ 5.39 (16.14) %
Average Physical Occupancy 56.82 % 27.80 % 104.39 %
Average Economic Occupancy 49.78 % 21.60 % 130.46 %
Proto Kendall Square, Cambridge, MA 3, 5 280
Average Monthly Rental Rate $ 2,585 $ 3,027 (14.60) %
Average Rental Rate Per Occupied Square Foot $ 4.78 $ 5.56 (14.03) %
Average Physical Occupancy 90.36 % 95.48 % (5.36) %
Average Economic Occupancy 88.81 % 95.15 % (6.66) %
The Lofts at Atlantic Wharf, Boston, MA 3, 5 86
Average Monthly Rental Rate $ 3,474 $ 4,510 (22.97) %
Average Rental Rate Per Occupied Square Foot $ 3.99 $ 5.04 (20.83) %
Average Physical Occupancy 87.60 % 94.96 % (7.75) %
Average Economic Occupancy 84.00 % 94.27 % (10.89) %
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5 N/A
Average Occupancy 10.90 % 59.60 % (81.71) %
Average Daily Rate $ 123.11 $ 211.35 (41.75) %
Revenue Per Available Room $ 13.43 $ 126.00 (89.34) %
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 6 402
Average Monthly Rental Rate $ 2,953 N/A N/A
Average Rental Rate Per Occupied Square Foot $ 3.55 N/A N/A
Average Physical Occupancy 15.84 % N/A N/A
Average Economic Occupancy 9.08 % N/A N/A
Q1 2021
--- ---
Residential and hotel performance (continued)

RENTAL RATES AND OCCUPANCY - Year-over-Year

Residential Units Three Months Ended Percent Change
31-Mar-21 31-Mar-20
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 5 508
Average Monthly Rental Rate $ 2,265 $ 2,342 (3.29) %
Average Rental Rate Per Occupied Square Foot $ 2.36 $ 2.51 (5.98) %
Average Physical Occupancy 80.05 % 82.22 % (2.64) %
Average Economic Occupancy 75.56 % 76.90 % (1.74) %
The Avant at Reston Town Center, Reston, VA 3, 5 359
Average Monthly Rental Rate $ 2,287 $ 2,419 (5.46) %
Average Rental Rate Per Occupied Square Foot $ 2.51 $ 2.67 (5.99) %
Average Physical Occupancy 91.36 % 91.46 % (0.11) %
Average Economic Occupancy 90.17 % 90.30 % (0.14) %
Total In-Service Residential Units 2,075

_____________

1Includes retail space.

2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and did not re-open until October 2, 2020 and continues to operate with limited occupancy.

3See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

4This property was completed and fully placed in-service on July 24, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.

5Excludes retail space.

6This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.

Q1 2021
In-service property listing as of March 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon Street CBD Boston MA 1 1,768,163 96.3 % $ 72.63
100 Federal Street (55% ownership) CBD Boston MA 1 1,238,461 98.2 % 63.99
800 Boylston Street - The Prudential Center CBD Boston MA 1 1,194,810 95.9 % 65.75
111 Huntington Avenue - The Prudential Center CBD Boston MA 1 860,455 92.4 % 69.96
Atlantic Wharf Office (55% ownership) CBD Boston MA 1 793,823 99.8 % 77.65
Prudential Center (retail shops) 3, 4 CBD Boston MA 1 594,771 74.0 % 97.81
101 Huntington Avenue - The Prudential Center CBD Boston MA 1 506,476 99.0 % 56.37
The Hub on Causeway - Podium (50% ownership) 4, 5 CBD Boston MA 1 382,497 98.3 % 61.30
888 Boylston Street - The Prudential Center CBD Boston MA 1 363,320 100.0 % 77.26
Star Market at the Prudential Center 3 CBD Boston MA 1 57,236 100.0 % 59.82
Subtotal 10 7,760,012 95.2 % $ 70.40
145 Broadway East Cambridge MA 1 490,086 99.1 % $ 85.39
355 Main Street East Cambridge MA 1 259,640 99.0 % 76.17
90 Broadway East Cambridge MA 1 223,771 100.0 % 71.37
255 Main Street East Cambridge MA 1 215,394 97.5 % 85.08
300 Binney Street East Cambridge MA 1 195,191 100.0 % 59.07
150 Broadway East Cambridge MA 1 177,226 100.0 % 80.94
105 Broadway East Cambridge MA 1 152,664 100.0 % 68.77
250 Binney Street East Cambridge MA 1 67,362 100.0 % 47.46
University Place Mid-Cambridge MA 1 195,282 100.0 % 54.95
Subtotal 9 1,976,616 99.4 % $ 73.91
Bay Colony Corporate Center Route 128 Mass Turnpike MA 4 1,001,136 80.5 % $ 43.61
Reservoir Place Route 128 Mass Turnpike MA 1 526,985 80.2 % 38.39
140 Kendrick Street Route 128 Mass Turnpike MA 3 380,991 99.4 % 52.82
Weston Corporate Center Route 128 Mass Turnpike MA 1 356,995 100.0 % 56.68
Waltham Weston Corporate Center Route 128 Mass Turnpike MA 1 301,611 92.7 % 40.13
230 CityPoint Route 128 Mass Turnpike MA 1 296,212 93.9 % 41.18
10 CityPoint Route 128 Mass Turnpike MA 1 241,203 98.1 % 57.46
20 CityPoint 6 Route 128 Mass Turnpike MA 1 211,476 63.2 % 51.24
77 CityPoint Route 128 Mass Turnpike MA 1 209,712 95.8 % 48.50
890 Winter Street Route 128 Mass Turnpike MA 1 173,950 64.5 % 42.59
200 West Street 6, 7 Route 128 Mass Turnpike MA 1 134,921 97.9 % 36.33
1265 Main Street (50% ownership) 5 Route 128 Mass Turnpike MA 1 114,969 100.0 % 44.89
Reservoir Place North Route 128 Mass Turnpike MA 1 73,258 100.0 % 43.64
195 West Street Route 128 Mass Turnpike MA 1 63,500 — % —
The Point 3 Route 128 Mass Turnpike MA 1 16,300 84.7 % 45.33
191 Spring Street Route 128 Northwest MA 1 170,997 100.0 % 44.66
Lexington Office Park Route 128 Northwest MA 2 166,779 66.1 % 30.40
201 Spring Street Route 128 Northwest MA 1 106,300 100.0 % 45.29
33 Hayden Avenue Route 128 Northwest MA 1 80,876 100.0 % 65.22
32 Hartwell Avenue Route 128 Northwest MA 1 69,154 100.0 % 28.18
100 Hayden Avenue Route 128 Northwest MA 1 55,924 100.0 % 45.81
181 Spring Street Route 128 Northwest MA 1 55,793 100.0 % 43.99
92 Hayden Avenue Route 128 Northwest MA 1 31,100 100.0 % 44.27
17 Hartwell Avenue Route 128 Northwest MA 1 30,000 100.0 % 48.46
Subtotal 30 4,870,142 87.3 % $ 45.64
Boston Office Total: 49 14,606,770 93.1 % $ 63.13
Residential
Hub50House (440 units) (50% ownership) 5, 6 CBD Boston MA 1 320,444
The Lofts at Atlantic Wharf (86 units) CBD Boston MA 1 87,097
Proto Kendall Square (280 units) East Cambridge MA 1 166,717
Boston Residential Total: 3 574,258 Q1 2021
--- ---
In-service property listing (continued) as of March 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
BOSTON (continued)
Hotel
Boston Marriott Cambridge (437 rooms) East Cambridge MA 1 334,260
Boston Hotel Total: 1 334,260
Boston Total: 53 15,515,288
LOS ANGELES
Office
Colorado Center (50% ownership) 5 West Los Angeles CA 6 1,128,568 88.1 % $ 72.53
Santa Monica Business Park (55% ownership) 5 West Los Angeles CA 14 1,102,652 75.5 % 64.54
Santa Monica Business Park Retail (55% ownership) 3, 5 West Los Angeles CA 7 74,404 90.1 % 72.02
Subtotal 27 2,305,624 82.2 % $ 69.02
Los Angeles Total: 27 2,305,624 82.2 % $ 69.02
NEW YORK
Office
767 Fifth Avenue (The GM Building) (60% ownership) 4 Plaza District NY 1 1,957,768 90.9 % $ 166.75
601 Lexington Avenue (55% ownership) 6 Park Avenue NY 1 1,672,431 96.0 % 100.17
399 Park Avenue Park Avenue NY 1 1,576,437 95.1 % 102.04
599 Lexington Avenue Park Avenue NY 1 1,062,708 99.4 % 92.29
Times Square Tower (55% ownership) Times Square NY 1 1,250,605 82.3 % 78.32
250 West 55th Street Times Square / West Side NY 1 966,979 99.4 % 97.86
Dock 72 (50% ownership) 5, 6 Brooklyn NY 1 668,625 33.1 % 60.58
510 Madison Avenue Fifth/Madison Avenue NY 1 355,083 98.4 % 143.62
Subtotal 8 9,510,636 89.4 % $ 111.31
510 Carnegie Center Princeton NJ 1 234,160 — % $ —
206 Carnegie Center Princeton NJ 1 161,763 100.0 % 36.00
210 Carnegie Center Princeton NJ 1 159,468 79.2 % 37.46
212 Carnegie Center Princeton NJ 1 151,355 76.6 % 37.64
214 Carnegie Center Princeton NJ 1 146,979 38.9 % 50.50
506 Carnegie Center Princeton NJ 1 138,616 82.1 % 38.05
508 Carnegie Center Princeton NJ 1 134,433 100.0 % 42.23
202 Carnegie Center Princeton NJ 1 134,068 91.2 % 41.20
804 Carnegie Center Princeton NJ 1 130,000 100.0 % 39.56
504 Carnegie Center Princeton NJ 1 121,990 100.0 % 34.28
101 Carnegie Center Princeton NJ 1 121,620 100.0 % 39.15
502 Carnegie Center Princeton NJ 1 121,460 100.0 % 39.32
701 Carnegie Center Princeton NJ 1 120,000 100.0 % 43.14
104 Carnegie Center Princeton NJ 1 102,930 63.6 % 38.97
103 Carnegie Center Princeton NJ 1 96,332 58.8 % 32.55
105 Carnegie Center Princeton NJ 1 69,955 50.2 % 36.56
302 Carnegie Center Princeton NJ 1 64,926 89.3 % 36.21
211 Carnegie Center Princeton NJ 1 47,025 100.0 % 37.87
201 Carnegie Center Princeton NJ — 6,500 100.0 % 37.26
Subtotal 18 2,263,580 75.8 % $ 38.87
New York Total: 26 11,774,216 86.8 % $ 99.14
SAN FRANCISCO
Office
Salesforce Tower CBD San Francisco CA 1 1,420,682 100.0 % $ 104.45
Embarcadero Center Four CBD San Francisco CA 1 941,326 93.8 % 82.25
Embarcadero Center One CBD San Francisco CA 1 831,298 83.1 % 78.05
Embarcadero Center Two CBD San Francisco CA 1 799,366 87.6 % 78.36
Embarcadero Center Three CBD San Francisco CA 1 786,078 89.8 % 77.62 Q1 2021
--- ---
In-service property listing (continued) as of March 31, 2021
--- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
SAN FRANCISCO (continued)
680 Folsom Street CBD San Francisco CA 2 524,793 99.1 % 70.21
535 Mission Street CBD San Francisco CA 1 307,235 95.7 % 85.72
690 Folsom Street CBD San Francisco CA 1 26,080 100.0 % 66.16
Subtotal 9 5,636,858 93.0 % $ 85.51
Gateway Commons (54% ownership) 5, 6 South San Francisco CA 6 1,070,227 75.7 % $ 57.71
Mountain View Research Park Mountain View CA 15 542,264 76.3 % 69.74
2440 West El Camino Real Mountain View CA 1 141,392 87.2 % 86.00
453 Ravendale Drive Mountain View CA 1 29,620 75.0 % 39.02
3625-3635 Peterson Way 8 Santa Clara CA 1 218,366 100.0 % 24.51
North First Business Park 8 San Jose CA 5 190,636 61.9 % 27.34
Subtotal 29 2,192,505 77.8 % $ 56.11
San Francisco Office Total: 38 7,829,363 88.7 % $ 78.27
Residential
The Skylyne (402 units) 6 CBD Oakland CA 1 330,996
San Francisco Residential Total: 1 330,996
San Francisco Total: 39 8,160,359
WASHINGTON, DC
Office
Metropolitan Square (20% ownership) 5 East End Washington DC 1 657,481 61.5 % $ 66.89
901 New York Avenue (25% ownership) 5 East End Washington DC 1 541,990 74.1 % 68.09
601 Massachusetts Avenue East End Washington DC 1 478,818 97.3 % 97.12
Market Square North (50% ownership) 5 East End Washington DC 1 417,979 79.5 % 71.65
2200 Pennsylvania Avenue CBD Washington DC 1 458,831 96.7 % 91.15
1330 Connecticut Avenue CBD Washington DC 1 253,941 89.4 % 72.53
Sumner Square CBD Washington DC 1 209,556 93.7 % 55.33
500 North Capitol Street, N.W. (30% ownership) 5 Capitol Hill Washington DC 1 230,900 98.5 % 80.61
Capital Gallery 6 Southwest Washington DC 1 176,809 89.1 % 56.60
Subtotal 9 3,426,305 83.4 % $ 76.38
South of Market Reston VA 3 623,250 74.9 % $ 54.25
Fountain Square Reston VA 2 505,458 74.8 % 53.89
One Freedom Square Reston VA 1 430,640 66.2 % 51.94
Two Freedom Square Reston VA 1 423,970 100.0 % 47.83
One and Two Discovery Square Reston VA 2 366,989 100.0 % 50.33
One Reston Overlook Reston VA 1 319,519 100.0 % 45.51
17Fifty Presidents Street 6 Reston VA 1 275,809 100.0 % 63.89
Reston Corporate Center Reston VA 2 261,046 100.0 % 47.45
Democracy Tower Reston VA 1 259,441 98.4 % 59.37
Fountain Square Retail 3 Reston VA 1 216,591 86.0 % 39.71
Two Reston Overlook Reston VA 1 134,615 100.0 % 48.00
Subtotal 16 3,817,328 87.9 % $ 51.53
Wisconsin Place Office Montgomery County MD 1 299,217 82.3 % $ 60.84
Kingstowne Two Springfield VA 1 155,995 87.2 % 37.92
Kingstowne One Springfield VA 1 150,957 93.0 % 39.51
7601 Boston Boulevard Springfield VA 1 108,286 100.0 % 33.94
7435 Boston Boulevard Springfield VA 1 103,557 83.4 % 25.45
8000 Grainger Court Springfield VA 1 88,775 — % —
Kingstowne Retail 3 Springfield VA 1 88,288 94.3 % 41.62
7500 Boston Boulevard Springfield VA 1 79,971 100.0 % 19.38
7501 Boston Boulevard Springfield VA 1 75,756 100.0 % 37.28
7450 Boston Boulevard Springfield VA 1 62,402 100.0 % 17.84 Q1 2021
--- ---
In-service property listing (continued) as of March 31, 2021
--- --- --- --- --- --- --- --- --- --- ---
Sub Market Number of Buildings Square Feet Leased % 1 Annualized Rental Obligations Per Leased SF 2
WASHINGTON, DC (continued)
7374 Boston Boulevard Springfield VA 1 57,321 100.0 % 18.48
8000 Corporate Court Springfield VA 1 52,539 100.0 % 16.27
7451 Boston Boulevard Springfield VA 1 45,615 67.4 % 31.69
7300 Boston Boulevard Springfield VA 1 32,000 100.0 % 23.48
7375 Boston Boulevard Springfield VA 1 26,865 100.0 % 34.20
Subtotal 15 1,427,544 85.3 % $ 37.01
Washington, DC Office Total: 40 8,671,177 85.7 % $ 58.66
Residential
Signature at Reston (508 units) Reston VA 1 517,783
The Avant at Reston Town Center (359 units) Reston VA 1 355,374
Washington, DC Residential Total: 2 873,157
Washington, DC Total: 42 9,544,334
Total In-Service Properties: 187 47,299,821 88.7 % 9 $ 74.40 9

_____________

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

2See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

3This is a retail property.

4Includes 145,849 square feet at Prudential Center (retail shops), 66,806 square feet at The Hub on Causeway - Podium and 30,094 square feet at 767 Fifth Avenue (The GM building) of leases terminated by the Company where the tenant is still occupying the space.

5This is an unconsolidated joint venture property.

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

7A portion of this property is under redevelopment. For additional detail, see page 17.

8Property held for redevelopment.

9Excludes Hotel and Residential properties. For additional detail, see pages 21-22.

Q1 2021
Top 20 tenants listing and portfolio tenant diversification

as of March 31, 2021

TOP 20 TENANTS

No. Tenant BXP’s Share of Annualized Rental Obligations 1 Weighted Average Remaining Lease Term (years) 2
1 salesforce.com 3.62 % 10.8
2 Arnold & Porter Kaye Scholer 3.04 % 13.2
3 Akamai Technologies 2.23 % 13.6
4 Biogen 1.81 % 5.6
5 Shearman & Sterling 1.62 % 12.6
6 Kirkland & Ellis 1.55 % 16.2
7 Ropes & Gray 1.46 % 9.3
8 WeWork 1.39 % 12.4
9 Google 1.38 % 16.4
10 Weil Gotshal & Manges 1.23 % 13.1
11 Microsoft 1.19 % 10.7
12 Wellington Management 1.16 % 6.2
13 Millennium Management 1.16 % 9.8
14 US Government 1.13 % 4.6
15 Aramis (Estee Lauder) 1.08 % 16.3
16 Morrison & Foerster 0.93 % 9.4
17 O’Melveny & Myers 0.88 % 3.7
18 Bank of America 0.85 % 14.7
19 Mass Financial Services 0.84 % 6.9
20 Under Armour 0.81 % 13.0
BXP’s Share of Annualized Rental Obligations 29.37 %
BXP’s Share of Square Feet 1 23.24 %
Weighted Average Remaining Lease Term (years) 11.2

NOTABLE SIGNED DEALS 3

Tenant Property Square Feet
Marriott International 7750 Wisconsin Avenue 734,000
Fannie Mae Reston Next 703,000
Verizon 100 Causeway Street 440,000
Google 325 Main Street 379,000
Wilmer Cutler Pickering Hale 2100 Pennsylvania Avenue 268,000
Volkswagen Group of America Reston Next 196,000
Translate Bio 200 West Street 138,000

TENANT DIVERSIFICATION 2

chart-24f14cc12edf4cf7a961a.jpg

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

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.

Q1 2021
Occupancy by location

as of March 31, 2021

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

CBD Suburban Total
Location 31-Mar-21 31-Dec-20 31-Mar-21 31-Dec-20 31-Mar-21 31-Dec-20
Boston 96.1 % 98.0 % 87.3 % 88.6 % 93.1 % 94.8 %
Los Angeles 82.2 % 93.5 % — % — % 82.2 % 93.5 %
New York 89.4 % 90.0 % 75.8 % 76.6 % 86.8 % 87.4 %
San Francisco 93.0 % 95.0 % 77.8 % 80.7 % 88.7 % 91.0 %
Washington, DC 83.4 % 83.7 % 87.2 % 84.8 % 85.7 % 84.4 %
Total Portfolio 91.0 % 93.1 % 84.0 % 84.2 % 88.7 % 90.1 %

chart-190529fcccdf45b8bdb1a.jpg

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

CBD Suburban Total
Location 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20 31-Mar-21 31-Mar-20
Boston 96.1 % 99.1 % 88.4 % 91.2 % 93.6 % 96.5 %
Los Angeles 82.2 % 95.9 % — % — % 82.2 % 95.9 %
New York 93.8 % 96.1 % 75.8 % 86.2 % 90.1 % 94.1 %
San Francisco 93.0 % 97.9 % 79.8 % 84.8 % 90.8 % 95.7 %
Washington, DC 83.0 % 82.6 % 86.5 % 86.4 % 85.1 % 84.9 %
Total Portfolio 92.3 % 95.9 % 84.7 % 87.9 % 90.0 % 93.5 %

chart-96db2836a06849888db1a.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 57.

Q1 2021
Capital structure

(in thousands, except percentages)

CONSOLIDATED DEBT

Aggregate Principal
Mortgage Notes Payable $ 2,926,612
Unsecured Line of Credit —
Unsecured Senior Notes, at face value 9,700,000
Outstanding Principal 12,626,612
Discount on Unsecured Senior Notes (18,736)
Deferred Financing Costs, Net (71,612)
Consolidated Debt $ 12,536,264

MORTGAGE NOTES PAYABLE

Interest Rate
Property Maturity Date GAAP Stated Outstanding Principal
601 Lexington Avenue (55% ownership) April 10, 2022 4.79% 4.75% $ 626,612
767 Fifth Avenue (The GM Building) (60% ownership) June 9, 2027 3.64% 3.43% 2,300,000
Total $ 2,926,612

BOSTON PROPERTIES LIMITED PARTNERSHIP UNSECURED SENIOR NOTES 1

Maturity Date Effective Yield (on issue date) Coupon Outstanding Principal
11 Year Unsecured Senior Notes February 1, 2023 3.95% 3.85% $ 1,000,000
10.5 Year Unsecured Senior Notes September 1, 2023 3.28% 3.13% 500,000
10.5 Year Unsecured Senior Notes February 1, 2024 3.92% 3.80% 700,000
7 Year Unsecured Senior Notes January 15, 2025 3.35% 3.20% 850,000
10 Year Unsecured Senior Notes February 1, 2026 3.77% 3.65% 1,000,000
10 Year Unsecured Senior Notes October 1, 2026 3.50% 2.75% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) December 1, 2028 4.63% 4.50% 1,000,000
10 Year Unsecured Senior Notes (“green bonds”) June 21, 2029 3.51% 3.40% 850,000
10.5 Year Unsecured Senior Notes March 15, 2030 2.98% 2.90% 700,000
10.75 Year Unsecured Senior Notes January 30, 2031 3.34% 3.25% 1,250,000
11 Year Unsecured Senior Notes (“green bonds”) April 1, 2032 2.67% 2.55% 850,000
$ 9,700,000

CAPITALIZATION

Shares/Units Common Stock
Outstanding Equivalents Equivalent Value 2
Common Stock 156,074 156,074 $ 15,804,053
Common Operating Partnership Units 17,579 17,579 1,780,050
Total Equity 173,653 $ 17,584,103
Consolidated Debt (A) $ 12,536,264
Add: BXP’s share of unconsolidated joint venture debt 3 1,165,872
Less: Partners’ share of consolidated debt 4 1,193,260
BXP’s Share of Debt 5 (B) $ 12,508,876
Consolidated Market Capitalization (C) $ 30,120,367
BXP’s Share of Market Capitalization 5 (D) $ 30,092,979
Consolidated Debt/Consolidated Market Capitalization (A÷C) 41.62 %
BXP’s Share of Debt/BXP’s Share of Market Capitalization 5 (B÷D) 41.57 %

_____________

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

2Values are based on the March 31, 2021 closing price of $101.26 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 37.

4Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 34.

5See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

Q1 2021
Debt analysis 1

as of March 31, 2021

(dollars in thousands)

chart-3610c2920ac34e9196c1a.jpg

UNSECURED CREDIT FACILITY - MATURES APRIL 24, 2022

Facility Outstanding at March 31, 2021 Letters of Credit Remaining Capacity at March 31, 2021
Unsecured Line of Credit $ 1,500,000 $ — $ 2,348 $ 1,497,652

UNSECURED AND SECURED DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Unsecured Debt 76.83 % 3.48 % 3.57 % 6.3
Secured Debt 23.17 % 3.71 % 3.89 % 5.1
Consolidated Debt 100.00 % 3.54 % 3.64 % 6.0

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rates GAAP Rates 2 Maturity (years)
Floating Rate Debt — % — % — % —
Fixed Rate Debt 100.00 % 3.54 % 3.64 % 6.0
Consolidated Debt 100.00 % 3.54 % 3.64 % 6.0

_____________

1Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 37.

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

Q1 2021
Senior unsecured debt covenant compliance ratios

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

This section presents such ratios as of March 31, 2021 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture.

COVENANT RATIOS AND RELATED DATA

Senior Notes Issued Prior to December 4, 2017 Senior Notes Issued On or After December 4, 2017
Test Actual
Total Outstanding Debt/Total Assets 1 Less than 60% 45.7 % 42.6 %
Secured Debt/Total Assets Less than 50% 14.2 % 13.2 %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) Greater than 1.50x 3.78 3.78
Unencumbered Assets/ Unsecured Debt Greater than 150% 242.3 % 264.7 %

_____________

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 2021
Net Debt to EBITDAre

(dollars in thousands)

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

Three Months Ended
31-Mar-21 31-Dec-20
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 7,310
Add:
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Noncontrolling interest - common units of the Operating Partnership 11,084 990
Noncontrolling interest in property partnerships 16,467 13,980
Net income 128,147 24,905
Add:
Interest expense 107,902 111,991
Losses from early extinguishments of debt 898 —
Depreciation and amortization expense 176,565 168,013
Less:
Gains on sales of real estate — 5,259
Income (loss) from unconsolidated joint ventures 5,225 (79,700)
Add:
BXP’s share of EBITDAre from unconsolidated joint ventures 2 24,737 13,900
EBITDAre 1 433,024 393,250
Less:
Partners’ share of EBITDAre from consolidated joint ventures 3 44,344 40,591
BXP’s Share of EBITDAre 1 (A) 388,680 352,659
Add:
Stock-based compensation expense 19,806 7,990
Non-cash losses from early extinguishments of debt 898 —
Preferred stock redemption charge 6,412 —
BXP’s Share of straight-line ground rent expense adjustment 1 1,166 1,216
BXP’s Share of lease transaction costs that qualify as rent inducements 1 3,026 2,580
Less:
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1 — (11)
BXP’s Share of straight-line rent 1, 4 13,601 (465)
BXP’s Share of fair value lease revenue 1 1,206 1,598
BXP’s Share of EBITDAre – cash 1 $ 405,181 $ 363,323
BXP’s Share of EBITDAre (Annualized) 5, 6 (A x 4) $ 1,554,720 $ 1,410,636

Reconciliation of BXP’s Share of Net Debt 1

31-Mar-21 31-Dec-20
Consolidated debt $ 12,536,264 $ 13,047,758
Less:
Cash and cash equivalents 697,369 1,668,742
Net debt 1 11,838,895 11,379,016
Add:
BXP’s share of unconsolidated joint venture debt 2 1,165,872 1,153,628
Partners’ share of cash and cash equivalents from consolidated joint ventures 124,957 146,234
Less:
BXP’s share of cash and cash equivalents from unconsolidated joint ventures 94,796 94,361
Partners’ share of consolidated joint venture debt 3 1,193,260 1,194,619
BXP’s Share of Net Debt 1 (B) $ 11,841,668 $ 11,389,898
BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) [B ÷ (A x 4)] 6 7.62 8.07

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures for the three months ended March 31, 2021, see pages 37 and 65.

3For disclosures related to the calculation of Partners’ share from consolidated joint ventures for the three months ended March 31, 2021, see pages 34 and 63.

4For the three months ended March 31, 2021, includes the straight-line impact of approximately $9,354 related to deferred revenue from a tenant.

5BXP’s Share of EBITDAre (Annualized) is calculated as the product of such amount for the quarter multiplied by four (4).

6For the three months ended December 31, 2020, includes $158,964 (or $39,741 annualized) of write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x for the three months ended December 31, 2020.

Q1 2021
Debt ratios

(in thousands, except for ratio amounts)

INTEREST COVERAGE RATIO 1

Three Months Ended
31-Mar-21 31-Dec-20
BXP’s Share of interest expense 1 $ 107,839 $ 113,210
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,725 4,212
Adjusted interest expense excluding capitalized interest (A) 102,668 107,552
Add:
BXP’s Share of capitalized interest 1 12,528 12,052
Adjusted interest expense including capitalized interest (B) $ 115,196 $ 119,604
BXP’s Share of EBITDAre – cash 1, 2 (C) $ 405,181 $ 363,323
Interest Coverage Ratio (excluding capitalized interest) (C÷A) 3.95 3.38
Interest Coverage Ratio (including capitalized interest) (C÷B) 3.52 3.04

FIXED CHARGE COVERAGE RATIO 1

Three Months Ended
31-Mar-21 31-Dec-20
BXP’s Share of interest expense 1 $ 107,839 $ 113,210
Less:
BXP’s Share of hedge amortization 1 1,446 1,446
BXP’s Share of amortization of financing costs 1 3,725 4,212
Add:
BXP’s Share of capitalized interest 1 12,528 12,052
BXP’s Share of maintenance capital expenditures 1 29,595 26,730
Hotel improvements, equipment upgrades and replacements 31 33
Preferred dividends/distributions 2,560 2,625
Total Fixed Charges (A) $ 147,382 $ 148,992
BXP’s Share of EBITDAre – cash 1, 2 (B) $ 405,181 $ 363,323
Fixed Charge Coverage Ratio (B÷A) 2.75 2.44

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2For a qualitative reconciliation of BXP’s Share of EBITDAre – cash, see page 32.

Q1 2021
Consolidated joint ventures

d

as of March 31, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

Norges Joint Ventures 1
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
ASSETS (The GM Building) 1 Atlantic Wharf Office Joint Ventures
Real estate, net $ 3,203,832 $ 2,265,616 $ 5,469,448
Cash and cash equivalents 108,491 181,246 289,737
Other assets 304,746 339,613 644,359
Total assets $ 3,617,069 $ 2,786,475 $ 6,403,544
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,278,360 $ 626,277 $ 2,904,637
Other liabilities 101,493 83,999 185,492
Total liabilities 2,379,853 710,276 3,090,129
Equity:
Boston Properties, Inc. 743,875 843,824 1,587,699
Noncontrolling interests 493,341 1,232,375 1,725,716 2
Total equity 1,237,216 2,076,199 3,313,415
Total liabilities and equity $ 3,617,069 $ 2,786,475 $ 6,403,544
BXP’s nominal ownership percentage 60% 55%
Partners’ share of cash and cash equivalents 3 $ 43,396 $ 81,561 $ 124,957
Partners’ share of consolidated debt 3, 4 $ 911,435 $ 281,825 $ 1,193,260

_____________

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.

4Amounts adjusted for basis differentials.

Q1 2021
Consolidated joint ventures (continued)

for the three months ended March 31, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1

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 2 $ 73,873 $ 110,215 3 $ 184,088
Write-offs associated with accounts receivable, net — 3 3
Straight-line rent 2,661 (13,555) 3 (10,894)
Write-offs associated with straight-line rent, net — (68) (68)
Fair value lease revenue (804) 109 (695)
Termination income (5) (8) (13)
Total lease revenue 75,725 96,696 172,421
Parking and other — 829 829
Insurance proceeds — 2,444 4 2,444
Total rental revenue 5 75,725 99,969 175,694
Expenses
Operating 30,897 35,383 66,280
Restoration expenses related to insurance claim — 2,460 4 2,460
Total expenses 30,897 37,843 68,740
Net Operating Income (NOI) 44,828 62,126 106,954
Other income (expense)
Development and management services revenue — (4) (4)
Interest and other income 1 (54) (53)
Interest expense (20,959) (6,756) (27,715)
Depreciation and amortization expense (15,737) (21,618) (37,355)
General and administrative expense (7) (63) (70)
Total other income (expense) (36,702) (28,495) (65,197)
Net income $ 8,126 $ 33,631 $ 41,757

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 $ 8,126 $ 33,631 $ 41,757
Add: Depreciation and amortization expense 15,737 21,618 37,355
Entity FFO $ 23,863 $ 55,249 $ 79,112
Partners’ NCI 6 $ 2,295 $ 14,172 $ 16,467
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6 6,600 9,857 16,457
Partners’ share FFO 6 $ 8,895 $ 24,029 $ 32,924
Reconciliation of BXP’s share of FFO
BXP’s share of net income adjusted for partners’ NCI $ 5,831 $ 19,459 $ 25,290
Depreciation and amortization expense - BXP’s basis difference 41 398 439
BXP’s share of depreciation and amortization expense 9,096 11,363 20,459
BXP’s share of FFO $ 14,968 $ 31,220 $ 46,188
Q1 2021
--- ---
Consolidated joint ventures (continued)

_____________

1For information relating to the impact of COVID-19 on the Company’s performance, see pages 3 and 61.

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

3 Lease revenue and straight-line rent includes approximately $19,435 and $17,007, respectively, related to deferred revenue from a tenant.

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

5 See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

6 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 2021
Unconsolidated joint ventures 1

as of March 31, 2021

(unaudited and dollars in thousands)

BALANCE SHEET INFORMATION

BXP’s Nominal Ownership Mortgage/Construction Loans Payable, Net Interest Rate
Property Net Equity Maturity Date Stated GAAP 2
Boston
The Hub on Causeway 50.00 % $ — $ — — — % — %
100 Causeway Street 50.00 % 56,458 124,282 September 5, 2023 1.63 % 1.84 %
Hub50House 50.00 % 49,520 86,900 April 19, 2022 2.12 % 2.40 %
Podium 50.00 % 48,398 86,948 September 6, 2021 2.36 % 2.86 %
Hotel Air Rights 50.00 % 11,032 — — — % — %
1265 Main Street 50.00 % 3,899 18,412 January 1, 2032 3.77 % 3.84 %
Los Angeles
Santa Monica Business Park 55.00 % 159,545 163,755 July 19, 2025 4.06 % 4.24 %
Colorado Center 50.00 % 229,094 274,673 August 9, 2027 3.56 % 3.58 %
Beach Cities Media Center 50.00 % 27,162 — — — % — %
New York
Dock 72 3 50.00 % 29,608 97,467 December 18, 2023 3.10 % 3.32 %
3 Hudson Boulevard 4 25.00 % 115,869 19,964 July 13, 2023 3.62 % 3.70 %
San Francisco
Platform 16 55.00 % 108,358 — — — % — %
Gateway Commons 50.00 % 332,591 — — — % — %
Washington, DC
7750 Wisconsin Avenue (Marriott International Headquarters) 50.00 % 58,697 88,779 April 26, 2023 1.37 % 1.91 %
1001 6th Street 50.00 % 42,607 — — — % — %
Market Square North 50.00 % (3,293) 62,025 November 10, 2025 2.80 % 2.96 %
Wisconsin Place Parking Facility 33.33 % 34,887 — — — % — %
500 North Capitol Street, N.W. 30.00 % (7,187) 31,462 June 6, 2023 4.15 % 4.20 %
901 New York Avenue 25.00 % (12,198) 54,843 January 5, 2025 3.61 % 3.69 %
Metropolitan Square 20.00 % (12,971) 56,362 July 7, 2022 5.40 % 6.90 %
1,272,076
Investments with deficit balances reflected within Other Liabilities 35,649
Investment in Joint Ventures $ 1,307,725
Mortgage/Construction Loans Payable, Net $ 1,165,872

chart-3605afd9475c471da701a.jpg

FLOATING AND FIXED RATE DEBT ANALYSIS

Weighted Average
% of Total Debt Stated Rate GAAP Rate 2 Maturity (years)
Floating Rate Debt 53.41 % 2.51 % 2.93 % 2.1
Fixed Rate Debt 46.59 % 3.76 % 3.83 % 5.4
Total Debt 100.00 % 3.09 % 3.35 % 3.6
Q1 2021
--- ---
Unconsolidated joint ventures (continued) 1

_____________

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

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

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

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

Q1 2021
Unconsolidated joint ventures (continued)

for the three months ended March 31, 2021

(unaudited and dollars in thousands)

RESULTS OF OPERATIONS 1, 2

Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 3 $ 8,520 $ 36,263 $ 1,144 $ 11,278 $ 25,242 $ 82,447
Write-offs associated with accounts receivable, net — (13) — — — (13)
Straight-line rent 809 (1,149) 232 230 1,210 1,332
Write-offs associated with straight-line rent, net — (81) — — (186) (267)
Fair value lease revenue — 289 — 45 334
Termination income — — — — — —
Total lease revenue 9,329 35,309 1,376 11,553 26,266 83,833
Parking and other 3 2,429 — 1 768 3,201
Total rental revenue 4 9,332 37,738 1,376 11,554 27,034 87,034
Expenses
Operating 4,773 12,124 2,969 4,687 12,174 36,727
Net operating income/(loss) 4,559 25,614 (1,593) 6,867 14,860 50,307
Other income/(expense)
Development and management services revenue — — 224 — 1 225
Interest and other income — 5 — 2 — 7
Interest expense (2,688) (11,775) (1,642) (4) (9,447) (25,556)
Transaction costs — — — — (7) (7)
Depreciation and amortization expense (4,778) (12,438) (2,535) (5,939) (8,413) (34,103)
General and administrative expense (15) (169) (83) (6) (134) (407)
Gain on sale of real estate — — — — — —
Total other income/(expense) (7,481) (24,377) (4,036) (5,947) (18,000) (59,841)
Net income/(loss) $ (2,922) $ 1,237 $ (5,629) $ 920 $ (3,140) $ (9,534)
Reconciliation of BXP’s share of Funds from Operations (FFO)
BXP’s share of net income/(loss) $ (1,461) $ 499 $ (2,812) $ 493 $ (359) 5 $ (3,640)
Basis differential
Straight-line rent $ — $ 383 6 $ — $ 8 7 $ — $ 391
Write-offs associated with straight-line rent — 75 6 — — — 75
Fair value lease revenue — 334 6 — (237) 7 — 97
Termination income — — — — — —
Depreciation and amortization expense (43) (1,152) 6 347 (1,043) 7 (64) (1,955)
Gain on sale of real estate — — — — — —
Gain on sale of investment — — — — 10,257 10,257
Total basis differential 8 (43) (360) 6 347 (1,272) 7 10,193 8,865
Income/(loss) from unconsolidated joint ventures (1,504) 139 (2,465) (779) 9,834 5 5,225
Add:
BXP’s share of depreciation and amortization expense 2,432 7,737 920 4,253 3,070 5 18,412
Less:
BXP’s share of gain on sale of investment — — — — 10,257 9 10,257
BXP’s share of gain on sale of real estate — — — — — —
BXP’s share of FFO $ 928 $ 7,876 $ (1,545) $ 3,474 $ 2,647 $ 13,380
Q1 2021
--- ---
Unconsolidated joint ventures (continued)

_____________

1For information relating to the impact of COVID-19 on the Company’s performance, see pages 3 and 61.

2 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 23 - 26.

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

4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

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

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

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

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

9 On March 30, 2021, the Company completed the sale of its 50% ownership interest in Annapolis Junction. For more information, see page 16.

Q1 2021
Lease expirations - All in-service properties1, 2, 3

as of March 31, 2021

OFFICE
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 2,048,593 96,582,848 56.26 4.61 % 4
2022 2,553,432 142,407,282 64.39 5.94 %
2023 2,138,433 132,830,850 70.54 5.06 %
2024 3,701,824 208,137,529 62.71 8.91 %
2025 2,552,189 154,163,702 65.53 6.32 %
2026 3,671,778 214,619,722 74.67 7.72 %
2027 2,112,596 125,258,396 66.57 5.05 %
2028 2,334,613 153,237,886 72.17 5.70 %
2029 2,300,853 147,322,268 69.01 5.73 %
2030 2,275,973 160,860,216 73.41 5.88 %
Thereafter 12,010,868 795,520,961 80.30 26.61 %

All values are in US Dollars.

RETAIL
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 264,130 9,008,426 39.59 10.34 % 4
2022 188,128 12,921,690 73.17 8.03 %
2023 141,390 7,626,775 54.21 6.39 %
2024 139,131 13,556,651 103.22 5.97 %
2025 100,386 6,299,159 72.16 3.97 %
2026 113,217 20,364,649 196.85 4.70 %
2027 80,979 11,056,790 143.82 3.49 %
2028 114,402 7,616,234 67.20 5.15 %
2029 120,777 9,699,076 99.09 4.45 %
2030 193,686 9,252,357 58.96 7.13 %
Thereafter 517,745 54,558,689 142.52 17.40 %

All values are in US Dollars.

IN-SERVICE PROPERTIES
Rentable Square Footage Subject to Expiring Leases Current Annualized Rental Obligations Under Expiring Leases
Year of Lease Expiration
/PSF /PSF
2021 2,312,723 105,591,274 54.31 4.93 % 4
2022 2,741,560 155,328,972 65.04 6.06 %
2023 2,279,823 140,457,625 69.41 5.13 %
2024 3,840,955 221,694,180 64.25 8.75 %
2025 2,652,575 160,462,861 65.77 6.19 %
2026 3,784,995 234,984,371 78.92 7.55 %
2027 2,193,575 136,315,186 69.60 4.97 %
2028 2,449,015 160,854,120 71.92 5.67 %
2029 2,421,630 157,021,344 70.33 5.66 %
2030 2,469,659 170,112,573 72.44 5.95 %
Thereafter 12,528,613 850,079,650 82.61 26.09 %

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 57.

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

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

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

Q1 2021
Lease expirations - Boston region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 444,762 432,406 4
2022 787,938 744,877
2023 793,826 734,425
2024 929,562 899,299
2025 1,078,095 1,061,580
2026 1,297,892 1,058,833
2027 675,153 667,353
2028 1,094,092 1,094,092
2029 722,793 626,814
2030 1,213,815 1,207,142
Thereafter 3,571,366 3,056,093

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 228,296 196,356
2022 54,987 49,069
2023 44,311 44,311
2024 80,177 80,177
2025 38,874 38,874
2026 22,754 22,754
2027 51,535 51,535
2028 43,452 43,452
2029 49,777 49,102
2030 88,800 54,405
Thereafter 149,758 109,648

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 673,058 628,762 4
2022 842,925 793,946
2023 838,137 778,736
2024 1,009,739 979,476
2025 1,116,969 1,100,454
2026 1,320,646 1,081,587
2027 726,688 718,888
2028 1,137,544 1,137,544
2029 772,570 675,916
2030 1,302,615 1,261,547
Thereafter 3,721,124 3,165,741

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 57.

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

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

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

Q1 2021
Quarterly lease expirations - Boston region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 87,924 84,654 4
Q2 2021 201,047 201,047
Q3 2021 40,057 40,057
Q4 2021 115,734 106,648
Total 2021 444,762 432,406
Q1 2022 218,948 194,974
Q2 2022 135,242 132,613
Q3 2022 142,796 128,956
Q4 2022 290,952 288,334
Total 2022 787,938 744,877

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 224,779 192,841
Q3 2021 1,540 1,540
Q4 2021 1,977 1,975
Total 2021 228,296 196,356
Q1 2022 7,782 7,467
Q2 2022 17,843 17,843
Q3 2022 23,848 18,245
Q4 2022 5,514 5,514
Total 2022 54,987 49,069

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 87,924 84,654 4
Q2 2021 425,826 393,888
Q3 2021 41,597 41,597
Q4 2021 117,711 108,623
Total 2021 673,058 628,762
Q1 2022 226,730 202,441
Q2 2022 153,085 150,456
Q3 2022 166,644 147,201
Q4 2022 296,466 293,848
Total 2022 842,925 793,946

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 57.

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

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

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

Q1 2021
Lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 409,270 205,383 4
2022 33,151 17,810
2023 94,066 51,736
2024 128,891 70,890
2025 6,475 3,561
2026 470,927 259,010
2027 — —
2028 280,704 144,608
2029 — —
2030 — —
Thereafter 346,204 173,102

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 7,576 3,788
2022 — —
2023 1,405 703
2024 4,333 2,283
2025 17,218 9,381
2026 5,827 3,205
2027 — —
2028 — —
2029 38,118 20,965
2030 5,283 2,906
Thereafter 17,993 8,997

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 416,846 209,171 4
2022 33,151 17,810
2023 95,471 52,439
2024 133,224 73,173
2025 23,693 12,942
2026 476,754 262,215
2027 — —
2028 280,704 144,608
2029 38,118 20,965
2030 5,283 2,906
Thereafter 364,197 182,099

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 57.

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

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

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

Q1 2021
Quarterly lease expirations - Los Angeles region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 133,447 66,982 4
Q2 2021 4,964 2,730
Q3 2021 — —
Q4 2021 270,859 135,671
Total 2021 409,270 205,383
Q1 2022 1,809 995
Q2 2022 2,767 1,384
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 33,151 17,810

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 — —
Q3 2021 7,576 3,788
Q4 2021 — —
Total 2021 7,576 3,788
Q1 2022 — —
Q2 2022 — —
Q3 2022 — —
Q4 2022 — —
Total 2022 — —

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 133,447 66,982 4
Q2 2021 4,964 2,730
Q3 2021 7,576 3,788
Q4 2021 270,859 135,671
Total 2021 416,846 209,171
Q1 2022 1,809 995
Q2 2022 2,767 1,384
Q3 2022 5,698 2,849
Q4 2022 22,877 12,582
Total 2022 33,151 17,810

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 57.

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

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

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

Q1 2021
Lease expirations - New York region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 305,019 245,359
2022 632,407 531,354
2023 399,060 312,800
2024 1,286,918 1,042,905
2025 583,774 519,878
2026 710,978 517,451
2027 478,454 394,901
2028 273,412 251,366
2029 630,080 603,713
2030 597,658 564,401
Thereafter 3,929,060 2,911,719

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 2,805 1,969
2022 27,093 27,022
2023 — —
2024 11,244 8,623
2025 — —
2026 23,438 19,320
2027 — —
2028 — —
2029 3,135 3,135
2030 — —
Thereafter 236,719 173,996

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 307,824 247,328
2022 659,500 558,376
2023 399,060 312,800
2024 1,298,162 1,051,528
2025 583,774 519,878
2026 734,416 536,771
2027 478,454 394,901
2028 273,412 251,366
2029 633,215 606,848
2030 597,658 564,401
Thereafter 4,165,779 3,085,715

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 57.

2Includes partially placed in-service leased space.

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

Q1 2021
Quarterly lease expirations - New York region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 132,806 105,376
Q3 2021 112,757 80,528
Q4 2021 59,456 59,456
Total 2021 305,019 245,359
Q1 2022 232,119 151,584
Q2 2022 76,098 60,452
Q3 2022 216,129 211,256
Q4 2022 108,061 108,061
Total 2022 632,407 531,354

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 2,805 1,969
Q3 2021 — —
Q4 2021 — —
Total 2021 2,805 1,969
Q1 2022 — —
Q2 2022 178 107
Q3 2022 26,915 26,915
Q4 2022 — —
Total 2022 27,093 27,022

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 — —
Q2 2021 135,611 107,345
Q3 2021 112,757 80,528
Q4 2021 59,456 59,456
Total 2021 307,824 247,328
Q1 2022 232,119 151,584
Q2 2022 76,276 60,559
Q3 2022 243,044 238,171
Q4 2022 108,061 108,061
Total 2022 659,500 558,376

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 57.

2Includes partially placed in-service leased space.

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

Q1 2021
Lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 567,491 532,561 4
2022 719,521 587,537
2023 608,126 550,949
2024 701,966 668,216
2025 473,342 463,598
2026 633,725 546,276
2027 380,008 376,685
2028 499,859 487,603
2029 259,888 241,604
2030 269,363 267,319
Thereafter 1,531,493 1,517,171

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 9,408 9,408 4
2022 31,823 31,823
2023 35,548 35,548
2024 3,704 3,704
2025 26,975 26,975
2026 10,972 10,972
2027 9,260 9,260
2028 9,722 9,722
2029 9,944 9,944
2030 4,590 4,590
Thereafter 48,375 46,977

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 576,899 541,969 47.76 4
2022 751,344 619,360
2023 643,674 586,497
2024 705,670 671,920
2025 500,317 490,573
2026 644,697 557,248
2027 389,268 385,945
2028 509,581 497,325
2029 269,832 251,548
2030 273,953 271,909
Thereafter 1,579,868 1,564,148

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 57.

2Includes partially placed in-service leased space.

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

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

Q1 2021
Quarterly lease expirations - San Francisco region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 66,070 37,930 4
Q2 2021 274,193 274,193
Q3 2021 89,044 86,980
Q4 2021 138,184 133,459
Total 2021 567,491 532,561
Q1 2022 135,881 132,734
Q2 2022 341,702 229,045
Q3 2022 164,700 154,220
Q4 2022 77,238 71,538
Total 2022 719,521 587,537

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 1,743 1,743 4
Q2 2021 1,964 1,964
Q3 2021 821 821
Q4 2021 4,880 4,880
Total 2021 9,408 9,408
Q1 2022 4,816 4,816
Q2 2022 — —
Q3 2022 3,783 3,783
Q4 2022 23,224 23,224
Total 2022 31,823 31,823

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 67,813 39,673 4
Q2 2021 276,157 276,157
Q3 2021 89,865 87,801
Q4 2021 143,064 138,339
Total 2021 576,899 541,969
Q1 2022 140,697 137,550
Q2 2022 341,702 229,045
Q3 2022 168,483 158,003
Q4 2022 100,462 94,762
Total 2022 751,344 619,360

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 57.

2Includes partially placed in-service leased space.

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

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

Q1 2021
Lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 322,051 301,009 4
2022 380,415 330,073
2023 243,355 233,050
2024 654,487 637,895
2025 410,503 303,968
2026 558,256 492,595
2027 578,981 442,666
2028 186,546 145,599
2029 688,092 662,761
2030 195,137 152,465
Thereafter 2,632,745 2,248,756

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 16,045 16,045 4
2022 74,225 68,679
2023 60,126 60,126
2024 39,673 36,552
2025 17,319 12,060
2026 50,226 47,202
2027 20,184 16,082
2028 61,228 60,161
2029 19,803 14,731
2030 95,013 95,013
Thereafter 64,900 43,208

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 338,096 317,054 4
2022 454,640 398,752
2023 303,481 293,176
2024 694,160 674,447
2025 427,822 316,028
2026 608,482 539,797
2027 599,165 458,748
2028 247,774 205,760
2029 707,895 677,492
2030 290,150 247,478
Thereafter 2,697,645 2,291,964

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 57.

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

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

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

Q1 2021
Quarterly lease expirations - Washington, DC region in-service properties 1, 2, 3

as of March 31, 2021

OFFICE

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 8,521 8,521 4
Q2 2021 117,379 99,586
Q3 2021 72,954 69,706
Q4 2021 123,197 123,197
Total 2021 322,051 301,009
Q1 2022 70,300 44,141
Q2 2022 163,343 163,343
Q3 2022 86,598 62,415
Q4 2022 60,174 60,174
Total 2022 380,415 330,073

All values are in US Dollars.

RETAIL

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 2,250 2,250 4
Q2 2021 6,481 6,481
Q3 2021 1,417 1,417
Q4 2021 5,897 5,897
Total 2021 16,045 16,045
Q1 2022 12,411 12,411
Q2 2022 27,879 25,018
Q3 2022 2,816 2,816
Q4 2022 31,119 28,434
Total 2022 74,225 68,679

All values are in US Dollars.

TOTAL PROPERTY TYPES

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Lease Expiration
by Quarter /PSF /PSF
Q1 2021 10,771 10,771 4
Q2 2021 123,860 106,067
Q3 2021 74,371 71,123
Q4 2021 129,094 129,094
Total 2021 338,096 317,054
Q1 2022 82,711 56,552
Q2 2022 191,222 188,361
Q3 2022 89,414 65,231
Q4 2022 91,293 88,608
Total 2022 454,640 398,752

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 57.

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

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

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

Q1 2021
Lease expirations - CBD properties 1, 2, 3

as of March 31, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 401,900 357,604 4
2022 287,492 238,513
2023 468,513 409,112
2024 467,268 437,005
2025 344,443 327,928
2026 1,080,918 841,859
2027 387,161 379,361
2028 933,726 933,726
2029 481,998 385,344
2030 1,280,982 1,239,914
Thereafter 3,098,118 2,600,220

All values are in US Dollars.

Los Angeles

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 416,846 209,171 4
2022 33,151 17,810
2023 95,471 52,439
2024 133,224 73,173
2025 23,693 12,943
2026 476,754 262,215
2027 — —
2028 280,704 144,608
2029 38,118 20,965
2030 5,283 2,906
Thereafter 364,197 182,099

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 238,050 177,554
2022 546,549 445,424
2023 351,393 265,133
2024 815,873 569,239
2025 360,347 296,451
2026 515,021 317,376
2027 258,948 175,395
2028 216,656 194,610
2029 586,449 560,082
2030 550,484 517,227
Thereafter 3,985,436 2,905,372

All values are in US Dollars.

Q1 2021
Lease expirations - CBD properties (continued) 1, 2, 3

as of March 31, 2021

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 139,452 139,452 4
2022 417,797 417,797
2023 387,641 387,641
2024 531,382 531,382
2025 310,526 310,526
2026 469,798 469,798
2027 350,361 350,361
2028 485,069 485,069
2029 233,264 233,264
2030 269,865 269,865
Thereafter 1,548,426 1,548,426

All values are in US Dollars.

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 37,950 16,908 4
2022 147,793 91,905
2023 46,757 36,452
2024 184,083 164,370
2025 168,844 57,050
2026 354,193 285,508
2027 212,935 72,518
2028 167,042 125,027
2029 59,730 29,327
2030 65,491 22,819
Thereafter 1,386,512 980,830

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 57.

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

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

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

Q1 2021
Lease expirations - Suburban properties 1, 2, 3

as of March 31, 2021

Boston

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 271,158 271,158 4
2022 555,433 555,433
2023 369,624 369,624
2024 542,471 542,471
2025 772,526 772,526
2026 239,728 239,728
2027 339,527 339,527
2028 203,818 203,818
2029 290,572 290,572
2030 21,633 21,633
Thereafter 623,006 565,522

All values are in US Dollars.

New York

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 69,774 69,774
2022 112,951 112,951
2023 47,667 47,667
2024 482,289 482,289
2025 223,427 223,427
2026 219,395 219,395
2027 219,506 219,506
2028 56,756 56,756
2029 46,766 46,766
2030 47,174 47,174
Thereafter 180,343 180,343

All values are in US Dollars.

San Francisco

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 437,447 402,517 4
2022 333,547 201,563
2023 256,033 198,856
2024 174,288 140,538
2025 189,791 180,047
2026 174,899 87,450
2027 38,907 35,584
2028 24,512 12,256
2029 36,568 18,284
2030 4,088 2,044
Thereafter 31,442 15,721

All values are in US Dollars.

Q1 2021
Lease expirations - Suburban properties (continued) 1, 2, 3

as of March 31, 2021

Washington, DC

BXP’s Share
Rentable Square Footage Subject to Expiring Leases Rentable Square Footage Subject to Expiring Leases
Year of Lease
Expiration /PSF /PSF
2021 300,146 300,146 4
2022 306,847 306,847
2023 256,724 256,724
2024 510,077 510,077
2025 258,978 258,978
2026 254,289 254,289
2027 386,230 386,230
2028 80,732 80,732
2029 648,165 648,165
2030 224,659 224,659
Thereafter 1,311,133 1,311,133

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 57.

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

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

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

Q1 2021
Research coverage

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

Equity Research Coverage
Argus Research Company Jacob Kilstein 646.747.5447
Bank of America Merrill Lynch Jeffrey Spector / Jamie Feldman 646.855.1363 / 646.855.5808
BMO Capital John Kim 212.885.4115
BTIG Tom Catherwood 212.738.6140
Citi Michael Bilerman / Emmanuel Korchman 212.816.1383 / 212.816.1382
Deutsche Bank Securities Derek Johnston 212.250.5683
Evercore ISI Steve Sakwa 212.446.9462
Goldman Sachs & Company, Inc. Richard Skidmore 801.741.5459
Green Street Advisors Daniel Ismail 949.640.8780
Jefferies & Co. Peter Abramowitz 212.284.1705 / 212.336.7076
J.P. Morgan Securities Anthony Paolone 212.622.6682
KeyBanc Capital Markets Craig Mailman / Jordan Sadler 917.368.2316 / 917.368.2280
Mizuho Securities Omotayo Okusanya 212.205.7855
Morgan Stanley Vikram Malhotra 212.761.7064
Morningstar Michael Wong 312.384.5404
Piper Sandler Companies Alexander Goldfarb / Daniel Santos 212.466.7937 / 212.466.7927
RW Baird David Rodgers 216.737.7341
Scotiabank GBM Nicholas Yulico 212.225.6904
SMBC Nikko Securities Inc. Richard Anderson 646.521.2351
Truist Securities Michael Lewis 212.319.5659
UBS US Equity Research Brent Dilts 212.713.1841
Wells Fargo Securities Blaine Heck 443.263.6529 Debt Research Coverage
--- --- ---
Bank of America Merrill Lynch Andrew Molloy 646.855.6435
Barclays Peter Troisi 212.412.3695
J.P. Morgan Securities Mark Streeter 212.834.5086
US Bank Bill Stafford 877.558.2605
Wells Fargo Kevin McClure 704.715.8455 / 704.410.3252 Rating Agencies
--- --- ---
Moody’s Investors Service Ranjini Venkatesan 212.553.3828
Standard & Poor’s Michael Souers 212.438.2508
Q1 2021
--- ---
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 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 61.

Annualized Rental Obligations

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

Average Economic Occupancy

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

Average Monthly Rental Rates

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

Average Physical Occupancy

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

Debt to Market Capitalization Ratio

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

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

Q1 2021
Definitions (continued)

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

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

In some cases the Company also presents (A) BXP’s Share of EBITDAre – cash, which is BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense, preferred stock redemption charge, 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. common shareholders as presented in the Company’s consolidated financial statements. EBITDAre should not be considered a substitute to net income attributable to Boston Properties, Inc. common shareholders in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

Fixed Charge Coverage Ratio

Fixed Charge Coverage Ratio equals BXP’s Share of EBITDAre – cash divided by Total Fixed Charges. BXP’s Share of EBITDAre – cash is a non-GAAP financial measure equal to BXP’s Share of EBITDAre after eliminating the effects of straight-line rent (excluding the impact related to deferred revenue related to improvements to long-lived assets paid for by a tenant), fair value lease revenue, non-cash termination income adjustment (fair value lease amounts) and non-cash gains (losses) from early extinguishment of debt and adding straight-line ground rent expense, preferred stock redemption charge, 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, preferred stock redemption charge, 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, hedge amortization and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.’s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

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

Q1 2021
Definitions (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of Nareit, the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (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. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

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

Interest Coverage Ratio

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

Market Rents

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

Net Debt

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

Q1 2021
Definitions (continued)

Net Operating Income/(Loss) (NOI)

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

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

Rental Obligations

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

Rental Revenue

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

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 23 - 26 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

Q1 2021
Reconciliations

(unaudited and in thousands)

BXP’s Share of select items
Three Months Ended
31-Mar-21 31-Dec-20
Revenue $ 713,695 $ 665,089
Partners’ share of revenue from consolidated joint ventures (JVs) (75,274) (70,539)
BXP’s share of revenue from unconsolidated JVs 42,401 31,422
BXP’s Share of revenue $ 680,822 $ 625,972
Straight-line rent 1 $ 7,730 $ 13,187
Partners’ share of straight-line rent from consolidated JVs 1 5,067 (5,901)
BXP’s share of straight-line rent from unconsolidated JVs 804 (7,751)
BXP’s Share of straight-line rent 1 $ 13,601 $ (465)
Write-offs associated with accrued rent (all of which was included within straight-line rent), net $ (586) $ (26,168)
Partners’ share of write-offs associated with accrued rent from consolidated JVs (all of which was included within straight-line rent), net 31 46
BXP’s share of write-offs associated with accrued rent from unconsolidated JVs (all of which was included within straight-line rent), net (138) (13,619)
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent), net $ (693) $ (39,741)
Write-offs associated with accounts receivable (all of which was included within lease revenue), net $ 208 $ (294)
Partners’ share of write-offs associated with accounts receivable (all of which was included within lease revenue) from consolidated JVs, net (1) 2
BXP’s share of write-offs associated with accounts receivable (all of which was included within lease revenue) from unconsolidated JVs, net (7) (41)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue), net $ 200 $ (333)
Fair value lease revenue 2 $ 653 $ 614
Partners’ share of fair value lease revenue from consolidated JVs 2 273 311
BXP’s share of fair value lease revenue from unconsolidated JVs 2 280 673
BXP’s Share of fair value lease revenue 2 $ 1,206 $ 1,598
Lease termination income $ 4,269 $ 551
Partners’ share of termination income from consolidated JVs 6 (95)
BXP’s share of termination income from unconsolidated JVs — 771
BXP’s Share of termination income $ 4,275 $ 1,227
Non-cash termination income adjustment (fair value lease amounts) $ — $ (19)
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated JVs — 8
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) $ — $ (11)
Parking and other revenue 14,494 $ 15,903
Partners’ share of parking and other revenue from consolidated JVs (373) (411)
BXP’s share of parking and other revenue from unconsolidated JVs $ 1,546 $ 1,710
BXP’s Share of parking and other revenue $ 15,667 $ 17,202
Cash rent abatements and deferrals related to COVID-19 $ 7,260 $ 17,060
Partners’ share of cash rent abatements and deferrals related to COVID-19 from consolidated JVs (169) (1,027)
BXP’s share of cash rent abatements and deferrals from unconsolidated JVs related to COVID-19 2,044 3,118
BXP’s Share of cash rent abatements and deferrals related to COVID-19 $ 9,135 $ 19,151
Hedge amortization $ 1,590 $ 1,590
Partners’ share of hedge amortization from consolidated JVs (144) (144)
BXP’s share of hedge amortization from unconsolidated JVs — —
BXP’s Share of hedge amortization $ 1,446 $ 1,446 Q1 2021
--- ---
Reconciliations (continued) BXP’s Share of select items
--- --- --- --- ---
Three Months Ended
31-Mar-21 31-Dec-20
Straight-line ground rent expense adjustment $ 932 $ 943
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 234 273
BXP’s Share of straight-line ground rent expense adjustment $ 1,166 $ 1,216
Depreciation and amortization $ 176,565 $ 168,013
Noncontrolling interests in property partnerships’ share of depreciation and amortization (16,457) (15,910)
BXP’s share of depreciation and amortization from unconsolidated JVs 18,412 21,168
BXP’s Share of depreciation and amortization $ 178,520 $ 173,271
Lease transaction costs that qualify as rent inducements 3 $ 1,859 $ 1,333
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated JVs 3 (251) (12)
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated JVs 3 1,418 1,259
BXP’s Share of lease transaction costs that qualify as rent inducements 3 $ 3,026 $ 2,580
2nd generation tenant improvements and leasing commissions $ 89,653 $ 60,390
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated JVs (12,330) (856)
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated JVs 358 2,067
BXP’s Share of 2nd generation tenant improvements and leasing commissions $ 77,681 $ 61,601 Maintenance capital expenditures 4 $ 30,789 $ 27,253
--- --- --- --- ---
Partners’ share of maintenance capital expenditures from consolidated JVs 4 (1,517) (559)
BXP’s share of maintenance capital expenditures from unconsolidated JVs 4 323 36
BXP’s Share of maintenance capital expenditures 4 $ 29,595 $ 26,730
Interest expense $ 107,902 $ 111,991
Partners’ share of interest expense from consolidated JVs (11,420) (10,701)
BXP’s share of interest expense from unconsolidated JVs 11,357 11,920
BXP’s Share of interest expense $ 107,839 $ 113,210
Capitalized interest $ 12,032 $ 12,552
Partners’ share of capitalized interest from consolidated JVs (472) (1,386)
BXP’s share of capitalized interest from unconsolidated JVs 968 886
BXP’s Share of capitalized interest $ 12,528 $ 12,052
Amortization of financing costs $ 3,441 $ 3,551
Partners’ share of amortization of financing costs from consolidated JVs (382) (382)
BXP’s share of amortization of financing costs from unconsolidated JVs 666 1,043
BXP’s Share of amortization of financing costs $ 3,725 $ 4,212
Three Months Ended
31-Mar-20
Revenue $ 752,556
Partners’ share of revenue from consolidated joint ventures (JVs) (77,577)
BXP’s share of revenue from unconsolidated JVs 45,408
BXP’s Share of revenue $ 720,387

_____________

1For the three months ended March 31, 2021, includes approximately $17,007, $7,653 and $9,354 for consolidated, partners share and BXP’s Share, respectively, related to deferred revenue from a tenant.

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 2021
Reconciliations (continued)

for the three months ended March 31, 2021

(unaudited and dollars in thousands)

Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
CONSOLIDATED JOINT VENTURES 767 Fifth Avenue 100 Federal Street Total Consolidated
(The GM Building) Atlantic Wharf Office Joint Ventures
Revenue
Lease 1 $ 73,873 $ 110,215 2 $ 184,088
Write-offs associated with accounts receivable, net — 3 3
Straight-line rent 2,661 (13,555) 2 (10,894)
Write-offs associated with straight-line rent, net — (68) (68)
Fair value lease revenue (804) 109 (695)
Termination income (5) (8) (13)
Total lease revenue 75,725 96,696 172,421
Parking and other — 829 829
Insurance proceeds — 2,444 3 2,444
Total rental revenue 4 75,725 99,969 175,694
Expenses
Operating 30,897 35,383 66,280
Restoration expenses related to insurance claim — 2,460 3 2,460
Total expenses 30,897 37,843 68,740
Net Operating Income (NOI) 44,828 62,126 106,954
Other income (expense)
Development and management services revenue — (4) (4)
Interest and other income 1 (54) (53)
Interest expense (20,959) (6,756) (27,715)
Depreciation and amortization expense (15,737) (21,618) (37,355)
General and administrative expense (7) (63) (70)
Total other income (expense) (36,702) (28,495) (65,197)
Net income $ 8,126 $ 33,631 $ 41,757
BXP’s nominal ownership percentage 60.00% 55.00%
Partners’ share of NOI (after income allocation to private REIT shareholders) 3 $ 17,278 $ 27,098 $ 44,376
BXP’s share of NOI (after income allocation to private REIT shareholders) $ 27,550 $ 35,028 $ 62,578
Unearned portion of capitalized fees 6 $ 115 $ 196 $ 311
Partners’ share of select items 5
Partners’ share of write-offs associated with accounts receivable, net $ — $ (1) $ (1)
Partners’ share of write-offs associated with straight-line rent, net $ — $ 31 $ 31
Partners’ share of parking and other revenue $ — $ 373 $ 373
Partners’ share hedge amortization $ 144 $ — $ 144
Partners’ share of amortization of financing costs $ 346 $ 36 $ 382
Partners’ share of depreciation and amortization related to capitalized fees $ 322 $ 308 $ 630
Partners’ share of capitalized interest $ — $ 472 $ 472
Partners’ share of lease transaction costs that qualify as rent inducements $ — $ (251) $ (251)
Partners’ share of management and other fees $ 653 $ 859 $ 1,512
Partners’ share of basis differential and other adjustments $ (16) $ (205) $ (221)
Reconciliation of Partners’ share of EBITDAre 7
Partners’ NCI $ 2,295 $ 14,172 $ 16,467
Add:
Partners’ share of interest expense after BXP’s basis differential 8,380 3,040 11,420
Partners’ share of depreciation and amortization expense after BXP’s basis differential 6,600 9,857 16,457
Partners’ share of EBITDAre $ 17,275 $ 27,069 $ 44,344
Q1 2021
--- ---
Reconciliations (continued)

for the three months ended March 31, 2021

(unaudited and dollars in thousands)

CONSOLIDATED JOINT VENTURES
Norges Joint Ventures
Times Square Tower
601 Lexington Avenue / <br>One Five Nine East 53rd Street
767 Fifth Avenue 100 Federal Street Total Consolidated
Reconciliation of Partners’ share of Net Operating Income (Loss) (NOI) 5 (The GM Building) Atlantic Wharf Office Joint Ventures
Rental revenue 4 $ 30,290 $ 44,986 $ 75,276
Less: Termination income (2) (4) (6)
Rental revenue (excluding termination income) 4 30,292 44,990 75,282
Less: Operating expenses (including partners’ share of management and other fees) 13,012 17,888 30,900
Income allocation to private REIT shareholders — — —
NOI (excluding termination income and after income allocation to private REIT shareholders) $ 17,280 $ 27,102 $ 44,382
Rental revenue (excluding termination income) 4 $ 30,292 $ 44,990 $ 75,282
Less: Straight-line rent 1,064 (6,131) 2 (5,067)
Fair value lease revenue (322) 49 (273)
Add: Lease transaction costs that qualify as rent inducements — 251 251
Subtotal 29,550 51,323 80,873
Less: Operating expenses (including partners’ share of management and other fees) 13,012 17,888 30,900
Income allocation to private REIT shareholders — — —
NOI - cash (excluding termination income and after income allocation to private REIT shareholders) $ 16,538 $ 33,435 $ 49,973
Reconciliation of Partners’ share of Revenue 5
Rental revenue 4 $ 30,290 $ 44,986 $ 75,276
Add: Development and management services revenue — (2) (2)
Revenue $ 30,290 $ 44,984 $ 75,274

_________

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

2Lease revenue and straight-line rent includes approximately $19,435 and $17,007, respectively, related to deferred revenue from a tenant, of which the Partners’ share of lease revenue and straight-line are approximately $8,746 and $7,653, respectively.

3Amounts relate to damage at one of the Company’s properties in New York City due to a water main break.

4See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

5Amounts represent the partners’ share based on their respective ownership percentage.

6Capitalized 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.

7Amounts 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 2021
Reconciliations (continued)

for the three months ended March 31, 2021

(unaudited and dollars in thousands)

UNCONSOLIDATED JOINT VENTURES 1, 2

Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
Revenue
Lease 3 $ 8,520 $ 36,263 $ 1,144 $ 11,278 $ 25,242 $ 82,447
Write-offs associated with accounts receivable, net — (13) — — — (13)
Straight-line rent 809 (1,149) 232 230 1,210 1,332
Write-offs associated with straight-line rent — (81) — — (186) (267)
Fair value lease revenue — 289 — 45 334
Termination income — — — — — —
Total lease revenue 9,329 35,309 1,376 11,553 26,266 83,833
Parking and other 3 2,429 — 1 768 3,201
Total rental revenue 4 9,332 37,738 1,376 11,554 27,034 87,034
Expenses
Operating 4,773 12,124 2,969 5 4,687 12,174 36,727
Net operating income/(loss) 4,559 25,614 (1,593) 6,867 14,860 50,307
Other income/(expense)
Development and management services revenue — — 224 — 1 225
Interest and other income — 5 — 2 — 7
Transaction costs — — — — (7) (7)
Interest expense (2,688) (11,775) (1,642) (4) (9,447) (25,556)
Depreciation and amortization expense (4,778) (12,438) (2,535) (5,939) (8,413) (34,103)
General and administrative expense (15) (169) (83) (6) (134) (407)
Total other income/(expense) (7,481) (24,377) (4,036) (5,947) (18,000) (59,841)
Net income/(loss) $ (2,922) $ 1,237 $ (5,629) $ 920 $ (3,140) $ (9,534)
BXP’s share of write-offs associated with accounts receivable, net $ — $ 7 $ — $ — $ — $ 7
BXP’s share of write-offs associated with straight-line rent, net $ — $ 45 $ — $ — $ 93 $ 138
BXP’s share of parking and other revenue $ 2 $ 1,273 $ — $ 1 $ 270 6 $ 1,546
BXP’s share of amortization of financing costs $ 194 $ 85 $ 76 $ — $ 311 6 $ 666
BXP’s share of capitalized interest $ 479 $ — $ 203 $ — $ 286 6 $ 968
BXP’s share of non-cash termination income adjustment (fair value lease amounts) $ — $ — $ — $ — $ — $ —
Income/(loss) from unconsolidated joint ventures $ (1,504) $ 139 $ (2,465) $ (779) $ 9,834 6 $ 5,225
Add:
BXP’s share of interest expense 1,345 6,230 821 2 2,959 6 11,357
BXP’s share of depreciation and amortization expense 2,432 7,737 7 920 4,253 8 3,070 6 18,412
Less:
BXP’s share of gain on sale of investment — — — — 10,257 9 10,257
BXP’s share of EBITDAre $ 2,273 $ 14,106 7 $ (724) $ 3,476 8 $ 5,606 6 $ 24,737 Q1 2021
--- ---
Reconciliations (continued) UNCONSOLIDATED JOINT VENTURES 1, 2
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Reconciliation of BXP’s share of Net Operating Income/(Loss) Boston Los Angeles New York San Francisco Washington, DC Total Unconsolidated Joint Ventures
BXP’s share of rental revenue 4 $ 4,667 $ 20,596 7 $ 688 $ 6,016 8 $ 10,322 6 $ 42,289
BXP’s share of operating expenses 2,386 6,404 1,481 2,536 4,687 6 17,494
BXP’s share of net operating income/(loss) 2,281 14,192 7 (793) 3,480 8 5,635 6 24,795
Less:
BXP’s share of termination income — — — — — —
BXP’s share of net operating income/(loss) (excluding termination income) 2,281 14,192 (793) 3,480 5,635 6 24,795
Less:
BXP’s share of straight-line rent 405 (81) 7 116 132 8 232 6 804
BXP’s share of fair value lease revenue — 493 7 — (213) 8 — 280
Add:
BXP’s share of straight-line ground rent expense adjustment — — 234 — — 234
BXP’s share of lease transaction costs that qualify as rent inducements — 59 1,149 — 210 6 1,418
BXP’s share of net operating income/(loss) - cash (excluding termination income) $ 1,876 $ 13,839 7 $ 474 $ 3,561 8 $ 5,613 6 $ 25,363
Reconciliation of BXP’s share of Revenue
BXP’s share of rental revenue 4 $ 4,667 $ 20,596 7 $ 688 $ 6,016 8 $ 10,322 6 $ 42,289
Add:
BXP’s share of development and management services revenue — — 112 — — 112
BXP’s share of revenue $ 4,667 $ 20,596 7 $ 800 $ 6,016 8 $ 10,322 6 $ 42,401

_____________

1For information relating to the impact of COVID-19 on the Company’s performance, see pages 3 and 61.

2 For information on the properties included for each region and the Company’s percentage ownership in each property, see pages 23 - 26.

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

4 See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

5 Includes approximately $468 of straight-line ground rent expense.

6 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.

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

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

9 On March 30, 2021, the Company completed the sale of its 50% ownership interest in Annapolis Junction. For more information, see page 16.

Q1 2021
Consolidated Income Statement - prior year

(unaudited and in thousands, except per share amounts)

Three Months Ended
31-Mar-20
Revenue
Lease $ 710,111
Parking and other 24,504
Hotel revenue 6,825
Development and management services 7,879
Direct reimbursements of payroll and related costs from management services contracts 3,237
Total revenue 752,556
Expenses
Operating 127,800
Real estate taxes 135,019
Demolition costs 147
Hotel 6,821
General and administrative 36,454
Payroll and related costs from management services contracts 3,237
Transaction costs 615
Depreciation and amortization 171,094
Total expenses 481,187
Other income (expense)
Loss from unconsolidated joint ventures (369)
Gains on sales of real estate 410,165
Losses from investments in securities (5,445)
Interest and other income 3,017
Losses from early extinguishments of debt —
Interest expense (101,591)
Net income 577,146
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships (19,486)
Noncontrolling interest - common units of the Operating Partnership (57,539)
Net income attributable to Boston Properties, Inc. 500,121
Preferred dividends (2,625)
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic $ 3.20
Net income attributable to Boston Properties, Inc. per share - diluted $ 3.20
Q1 2021
--- ---
Funds from operations (FFO) 1 - prior year

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

Three Months Ended
31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496
Add:
Preferred dividends 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539
Noncontrolling interests in property partnerships 19,486
Net income 577,146
Add:
Depreciation and amortization expense 171,094
Noncontrolling interests in property partnerships' share of depreciation and amortization (17,627)
BXP's share of depreciation and amortization from unconsolidated joint ventures 18,332
Corporate-related depreciation and amortization (469)
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures —
Gains on sales of real estate 410,165
Noncontrolling interests in property partnerships 19,486
Preferred dividends 2,625
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 316,200
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO 32,138
FFO attributable to Boston Properties, Inc. common shareholders $ 284,062
Boston Properties, Inc.’s percentage share of Basic FFO 89.84 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO 10.16 %
Basic FFO per share $ 1.83
Weighted average shares outstanding - basic 155,011
Diluted FFO per share $ 1.83
Weighted average shares outstanding - diluted 155,258

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

Q1 2021
Funds available for distributions (FAD) 1 - prior year

(unaudited and in thousands)

Three Months Ended
31-Mar-20
Net income attributable to Boston Properties, Inc. common shareholders $ 497,496
Add:
Preferred dividends 2,625
Noncontrolling interest - common units of the Operating Partnership 57,539
Noncontrolling interests in property partnerships 19,486
Net income 577,146
Add:
Depreciation and amortization expense 171,094
Noncontrolling interests in property partnerships’ share of depreciation and amortization (17,627)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 18,332
Corporate-related depreciation and amortization (469)
Less:
Gain on sale of real estate included within income (loss) from unconsolidated joint ventures —
Gains on sales of real estate 410,165
Noncontrolling interests in property partnerships 19,486
Preferred dividends 2,625
Basic FFO 316,200
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 2 4,023
BXP’s Share of hedge amortization 1 1,435
Straight-line ground rent expense adjustment 3 1,017
Stock-based compensation 17,525
Non-real estate depreciation 469
Unearned portion of capitalized fees from consolidated joint ventures 56
Less:
BXP’s Share of straight-line rent 1 31,262
BXP’s Share of fair value lease revenue 1, 4 3,189
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1 49,943
BXP’s Share of maintenance capital expenditures 1, 5 20,244
Hotel improvements, equipment upgrades and replacements 197
Funds available for distribution to common shareholders and common unitholders (FAD) (A) 235,890
Distributions to common shareholders and unitholders (excluding any special distributions) (B) 169,652
FAD Payout Ratio1 (B÷A) 71.92 %

_____________

1See the Definitions and Reconciliations sections of this Supplemental package starting on page 57.

2Consists 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.

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

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.

5Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.

69

Document

Exhibit 99.2

bxplogohorizontalcolorrgbaa.jpg

BOSTON PROPERTIES ANNOUNCES FIRST QUARTER 2021 RESULTS; REPORTS EPS OF $0.59 AND FFO PER SHARE OF $1.56

Sees Recent Uptick in Leasing Activity and Signs Long-Term Leases with Media, Technology and Consulting Companies; Commences New Life Sciences Development Projects in Waltham, MA and South San Francisco CA to Meet Growing Tenant Demand

BOSTON, MA, April 27, 2021 - Boston Properties, Inc. (NYSE: BXP), the largest publicly-traded developer, owner and manager of Class A office properties in the United States, reported results today for the first quarter ended March 31, 2021.

Financial highlights for the first quarter include:

•Net income attributable to common shareholders of $91.6 million, or $0.59 per diluted share (EPS), compared to $497.5 million, or $3.20 per diluted share, for the quarter ended March 31, 2020. The decrease in EPS in the first quarter of 2021 was primarily due to a $2.37 per diluted share gain on asset sales in the first quarter of 2020 that did not reoccur in the first quarter of 2021. EPS in the first quarter of 2021 also included a $0.04 per diluted share write-off related to the redemption of the 5.25% Series B Cumulative Redeemable Preferred Stock (Series B Preferred Stock).

•Funds from Operations (FFO) of $243.8 million, or $1.56 per diluted share, compared to FFO of $284.1 million, or $1.83 per diluted share, for the quarter ended March 31, 2020.

◦FFO of $1.56 per diluted share was $0.01 greater than the mid-point of the Company's first quarter guidance provided on January 26, 2021, due to $0.04 per diluted share better-than-projected portfolio performance and $0.01 per diluted share of higher fee income, partially offset by a $0.04 per diluted share non-cash write-off related to the redemption of the Series B Preferred Stock.

The Company provided guidance for the second quarter 2021 with projected EPS of $0.54 - $0.56 and projected FFO of $1.59 - $1.61 per diluted share. See “EPS and FFO per Share Guidance” below.

First quarter and recent business highlights include:

•Signed approximately 592,000 square feet of leases in the quarter with a weighted-average lease term of 7.6 years. This reflects leasing volume of 84% of the total square feet of leases executed in First Quarter 2020. Notable leases signed this quarter include:

◦a 72,000 square foot, 10-year lease with Roku, a new tenant at Colorado Center in Los Angeles, California. Please see separate press release issued today.

◦a 63,500 square foot, 16-year new lease with a healthcare company at 195 West Street in Waltham, Massachusetts.

◦a 60,000 square foot lease extension with a technology manufacturing company at 200 West Street in Waltham, Massachusetts.

◦a 25,000 square foot, 14-year expansion with a multinational asset management company at 399 Park Avenue in New York, New York, bringing the total space leased by the tenant to 100,000 square feet.

–more–

•In addition, in April the Company signed a 98,000 square foot lease with a new tenant at Metropolitan Square in Washington, DC, and a 72,000 square foot expansion with an existing tenant in Reston, Virginia.

•Completed and fully placed in-service One Five Nine East 53rd Street in New York City. The property includes 195,000 square feet of office space that is 100% leased to NYU for a 30-year term.

•Commenced development and redevelopment of three properties focused on meeting the ongoing demand from tenants in the life sciences sector:

◦180 CityPoint, a 329,000 square foot lab development in Waltham, Massachusetts.

◦880 Winter Street, a 224,000 square foot office property in Waltham, Massachusetts that will be redeveloped and converted into lab space.

◦751 Gateway, a 229,000 square foot lab development in South San Francisco, California. 751 Gateway is the first phase of a multi-phase life sciences campus development. The Company will own 49% of 751 Gateway and future development projects at Gateway Commons upon completion.

•Commenced redevelopment of the top floors of the Prudential Tower in Boston, Massachusetts into a 59,000 square foot, world-class observatory attraction. This will be Boston’s only observatory and will feature a dramatic, 360-degree outdoor viewing deck, 11,000 square feet of outdoor space and two floors of exhibits and public spaces, marking a transformative addition to the City of Boston.

•Fully redeemed $850.0 million of 4.125% unsecured senior notes scheduled to mature in May 2021 and recognized a loss from early extinguishment of debt related to unamortized origination costs of approximately $0.4 million during the first quarter of 2021.

•Completed a green bond offering of $850.0 million 2.550% unsecured senior notes maturing in 2032. The offering marked the Company’s third green bond offering.

•The Company redeemed all $200 million of outstanding shares of its Series B Preferred Stock and the corresponding depositary shares on April 1, 2021. In connection with the redemption, the Company recognized a first quarter $6.4 million, $0.04 per diluted share non-cash write-off related to original issuance costs associated with the Series B Preferred Stock.

•Repaid the Company’s $500 million unsecured term loan. The Company recognized a loss from early extinguishment of debt totaling approximately $0.5 million related to unamortized financing costs.

•Completed the sale of Annapolis Junction Buildings Six and Seven, two Class A office properties in Annapolis, Maryland totaling approximately 247,000 square feet, for a gross sales price of approximately $65.9 million. The Company had a 50% ownership interest in the joint venture that owned the properties. Net cash proceeds to the Company totaled approximately $17.6 million after repayment of the Company's share of debt totaling approximately $15.1 million.

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, 2021. In the opinion of

–more–

management, the Company has made all adjustments considered necessary for a fair statement of these reported results.

EPS and FFO per Share Guidance:

The Company’s guidance for the second quarter 2021 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and the earnings impact of the events referenced in this release and those referenced during the conference call and in the Company’s Supplemental Operating and Financial Data for the quarter ended March 31, 2021. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, possible gains or losses from capital markets activity (including, without limitation, due to the early extinguishment of debt and resulting from hedging activity and derivatives), possible future write-offs of accounts receivable and accrued rent or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense, impairment losses on depreciable real estate and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

Second Quarter 2021
Low High
Projected EPS (diluted) $ 0.54 $ 0.56
Add:
Projected Company share of real estate depreciation and amortization 1.05 1.05
Projected FFO per share (diluted) $ 1.59 $ 1.61

Boston Properties will host a conference call on Wednesday, April 28, 2021 at 10:00 AM Eastern Time, open to the general public, to discuss the first quarter 2021 results, provide a business update pertaining to the current COVID-19 pandemic and discuss other business matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic) or (443) 961-9013 (International) and entering the passcode 8878526. A replay of the conference call will be available by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the passcode 8878526. There will also be a live audio webcast of the call, which may be accessed in the Investor Relations section of the Company’s website at investors.bxp.com. Shortly after the call, a replay of the webcast will be available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.

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

–more–

Boston Properties (NYSE: BXP) is the largest publicly-held developer and owner of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. Including properties owned by joint ventures, the Company’s portfolio totals 51.6 million square feet and 196 properties, including nine properties under construction/redevelopment. For more information about Boston Properties, please visit our website at www.bxp.com or follow us on LinkedIn or Instagram.

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

Financial tables follow.

–more–

BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
March 31, 2021 December 31, 2020
(in thousands, except for share and par value amounts)
ASSETS
Real estate, at cost $ 21,955,916 $ 21,649,383
Construction in progress 794,039 868,773
Land held for future development 421,349 450,954
Right of use assets - finance leases 237,017 237,393
Right of use assets - operating leases 144,143 146,406
Less: accumulated depreciation (5,679,441) (5,534,102)
Total real estate 17,873,023 17,818,807
Cash and cash equivalents 697,369 1,668,742
Cash held in escrows 251,814 50,587
Investments in securities 39,002 39,457
Tenant and other receivables, net 51,271 77,411
Related party note receivable, net 77,640 77,552
Note receivables, net 18,891 18,729
Accrued rental income, net 1,145,066 1,122,502
Deferred charges, net 622,649 640,085
Prepaid expenses and other assets 129,102 33,840
Investments in unconsolidated joint ventures 1,307,725 1,310,478
Total assets $ 22,213,552 $ 22,858,190
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net $ 2,904,672 $ 2,909,081
Unsecured senior notes, net 9,631,592 9,639,287
Unsecured line of credit — —
Unsecured term loan, net — 499,390
Lease liabilities - finance leases 239,361 236,492
Lease liabilities - operating leases 200,383 201,713
Accounts payable and accrued expenses 260,875 336,264
Dividends and distributions payable 171,003 171,082
Accrued interest payable 76,675 106,288
Preferred stock redemption liability 200,000 —
Other liabilities 399,965 412,084
Total liabilities 14,084,526 14,511,681
Commitments and contingencies — —
Redeemable deferred stock units 7,679 6,897
Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding — —
BOSTON PROPERTIES, INC.<br><br>CONSOLIDATED BALANCE SHEETS<br><br>(Unaudited)
--- --- --- --- ---
March 31, 2021 December 31, 2020
(in thousands, except for share and par value amounts)
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at December 31, 2020 — 200,000
Common stock, $0.01 par value, 250,000,000 shares authorized, 156,153,100 and 155,797,725 issued and 156,074,200 and 155,718,825 outstanding at March 31, 2021 and December 31, 2020, respectively 1,561 1,557
Additional paid-in capital 6,392,923 6,356,791
Dividends in excess of earnings (570,982) (509,653)
Treasury common stock at cost, 78,900 shares at March 31, 2021 and December 31, 2020 (2,722) (2,722)
Accumulated other comprehensive loss (45,139) (49,890)
Total stockholders’ equity attributable to Boston Properties, Inc. 5,775,641 5,996,083
Noncontrolling interests:
Common units of the Operating Partnership 620,106 616,596
Property partnerships 1,725,600 1,726,933
Total equity 8,121,347 8,339,612
Total liabilities and equity $ 22,213,552 $ 22,858,190

BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three months ended March 31,
2021 2020
(in thousands, except for per share amounts)
Revenue
Lease $ 685,817 $ 710,111
Parking and other 16,938 24,504
Hotel revenue 632 6,825
Development and management services 6,803 7,879
Direct reimbursements of payroll and related costs from management services contracts 3,505 3,237
Total revenue 713,695 752,556
Expenses
Operating
Rental 257,389 262,966
Hotel 2,051 6,821
General and administrative 44,959 36,454
Payroll and related costs from management services contracts 3,505 3,237
Transaction costs 331 615
Depreciation and amortization 176,565 171,094
Total expenses 484,800 481,187
Other income (expense)
Income (loss) from unconsolidated joint ventures 5,225 (369)
Gains on sales of real estate — 410,165
Interest and other income (loss) 1,168 3,017
Gains (losses) from investments in securities 1,659 (5,445)
Losses from early extinguishment of debt (898) —
Interest expense (107,902) (101,591)
Net income 128,147 577,146
Net income attributable to noncontrolling interests
Noncontrolling interests in property partnerships (16,467) (19,486)
Noncontrolling interest—common units of the Operating Partnership (11,084) (57,539)
Net income attributable to Boston Properties, Inc. 100,596 500,121
Preferred dividends (2,560) (2,625)
Preferred stock redemption charge (6,412) —
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Basic earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.59 $ 3.20
Weighted average number of common shares outstanding 155,928 155,011
Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders:
Net income $ 0.59 $ 3.20
Weighted average number of common and common equivalent shares outstanding 156,099 155,258

BOSTON PROPERTIES, INC.

FUNDS FROM OPERATIONS (1)

(Unaudited)

Three months ended March 31,
2021 2020
(in thousands, except for per share amounts)
Net income attributable to Boston Properties, Inc. common shareholders $ 91,624 $ 497,496
Add:
Preferred stock redemption charge 6,412 —
Preferred dividends 2,560 2,625
Noncontrolling interest - common units of the Operating Partnership 11,084 57,539
Noncontrolling interests in property partnerships 16,467 19,486
Net income 128,147 577,146
Add:
Depreciation and amortization expense 176,565 171,094
Noncontrolling interests in property partnerships’ share of depreciation and amortization (16,457) (17,627)
Company’s share of depreciation and amortization from unconsolidated joint ventures 18,412 18,332
Corporate-related depreciation and amortization (440) (469)
Less:
Gains on sale of investment included within income (loss) from unconsolidated joint ventures 10,257 —
Gains on sales of real estate — 410,165
Noncontrolling interests in property partnerships 16,467 19,486
Preferred dividends 2,560 2,625
Preferred stock redemption charge 6,412 —
Funds from operations (FFO) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) 270,531 316,200
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations 26,728 32,138
Funds from operations attributable to Boston Properties, Inc. common shareholders $ 243,803 $ 284,062
Boston Properties, Inc.’s percentage share of funds from operations - basic 90.12 % 89.84 %
Weighted average shares outstanding - basic 155,928 155,011
FFO per share basic $ 1.56 $ 1.83
Weighted average shares outstanding - diluted 156,099 155,258
FFO per share diluted $ 1.56 $ 1.83

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

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

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

BOSTON PROPERTIES, INC.

PORTFOLIO LEASING PERCENTAGES

% Leased by Location
March 31, 2021 December 31, 2020
Boston 93.1 % 94.8 %
Los Angeles 82.2 % 93.5 %
New York 86.8 % 87.4 %
San Francisco 88.7 % 91.0 %
Washington, DC 85.7 % 84.4 %
Total Portfolio 88.7 % 90.1 %

AT THE COMPANY

Michael LaBelle

Executive Vice President,

Chief Financial Officer and Treasurer

(617) 236-3352

Sara Buda

Vice President, Investor Relations

(617) 236-3429

sbuda@bxp.com

#

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