EX-99.2 3 ex-99_2.txt EX-99.2 Exhibit 99.2 BOSTON PROPERTIES, INC. 800 BOYLSTON STREET, SUITE 400 BOSTON, MA 02199 (NYSE: BXP) AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD Elaine Quinlan Marilynn Meek - General Info. (212) 661-8030 Investor Relations Claire Koeneman - Analyst (312) 266-7800 (617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030 BOSTON PROPERTIES, INC. ANNOUNCES SECOND QUARTER 2000 RESULTS REPORTS FFO PER SHARE OF $0.83 BOSTON, MA, JULY 25, 2000 - Boston Properties, Inc. (NYSE: BXP) today reported results for the second quarter ended June 30, 2000. Funds from Operations (FFO) for the quarter ended June 30, 2000 were $59.3 million, or $0.87 per share basic and $0.83 per share diluted, compared to FFO of $48.7 million, or $0.74 per share basic and $0.72 per share diluted for the quarter ended June 30, 1999. This represents a 15.3% year to year increase in diluted FFO per share. The weighted average number of basic and diluted shares outstanding totaled 67,991,227 and 82,582,547, respectively, for the quarter ended June 30, 2000 and 65,533,924 and 79,329,377, respectively, for the same quarter last year. FFO for the six months ended June 30, 2000 were $113.8 million, or $1.67 per share basic and $1.61 per share diluted, compared to FFO of $94.3 million, or $1.46 per share basic and $1.42 per share diluted for the six months ended June 30, 1999. The weighted average number of basic and diluted shares outstanding totaled 67,972,726 and 81,870,560, respectively, for the six months ended June 30, 2000 and 64,539,307 and 77,562,965, respectively, for the same period last year. Revenues were $217.3 million for the quarter and $427.5 million for the six months ended June 30, 2000, compared to revenues of $191.6 million and $379.3 million for the same periods in 1999. Net income available to common shareholders for the quarter and six months ended June 30, 2000 was $34.9 million and $65.9 million, respectively, compared to $27.2 million and $52.2 million for the same periods in 1999. Net income per share available to common shareholders for the quarter and six months ended June 30, 2000 was $0.51 per share basic and $0.50 per share diluted and $0.97 per share basic and $0.96 per share diluted, respectively, compared to $0.42 per share basic and $0.41 per share diluted and $0.81 per share basic and $0.80 per share diluted for the same periods last year. -MORE- The reported results are unaudited and there can be no assurance that the results will not vary from the final information for the quarter ended June 30, 2000. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. As of June 30, 2000, the Company's portfolio consisted of 142 properties comprising more than 36.3 million square feet, including thirteen properties under development totaling 3.8 million square feet. The overall occupancy rate for the properties in service as of June 30, 2000 was 98.5%. Additional highlights of the second quarter include: - The refinancing of the mortgage loan on Ten Cambridge Center and the Cambridge Center North Garage on April 6, 2000 which consisted of replacing the $40.0 million mortgage loan with a $36.0 million loan and removing the Cambridge Center North Garage as collateral. The new financing bears interest at a rate equal to 8.27% and matures in April 2010. - The closing of construction financing totaling $32.0 million collateralized by the 2600 Tower Oaks Boulevard development project in Rockville, Maryland on April 13, 2000. Such financing bears interest at a rate equal to LIBOR + 1.90% and matures in October 2002. - The refinancing of the mortgage loan on Metropolitan Square on April 20, 2000 which consisted of replacing the $104.0 million mortgage loan with a $140.0 million loan. The new financing bears interest at a rate equal to 8.23% and matures in April 2010. - The closing of construction financing totaling $78.0 million collateralized by the 140 Kendrick Street development project in Needham, Massachusetts on April 24, 2000. Such financing matures in July 2002 and consists of two tranches: $16.4 million bearing interest at a rate of LIBOR + 1.35% and $61.6 million bearing interest at a rate of LIBOR + 1.65%. - On May 3, 2000, the Board of Directors of the Company declared a second quarter common dividend of $0.53 per share, a 17.8% increase from the previous quarter. - The acquisition of a 49% interest in Metropolitan Square, a 582,194 square foot Class A office building in Washington, D.C., and a 75% interest in 140 Kendrick Street, a 381,000 square foot build-to-suit development property in Needham, Massachusetts, by the New York State Common Retirement Fund on May 12, 2000 for approximately $46.7 million and the assumption of $88.2 million of debt. These properties were previously 100% owned by Boston Properties. - Signing of an agreement with Captivate Network, Inc. ("Captivate") in which Captivate will provide a network of video displays in building elevators which will deliver subscriber messaging, commercial advertising, news and other information to at least 26 Class A office buildings comprising more than 14.4 million square feet. The agreement provides for Boston Properties to participate in any revenues Captivate generates resulting from Boston Properties' buildings and for Boston Properties to receive 605,555 warrants for shares of common stock in Captivate. Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class A office properties in the United States, concentrated in the Northeast Corridor from Virginia to Greater Boston and in Greater San Francisco. To receive Boston Properties' latest news and corporate developments via fax at no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the Company's web site at http://www.bostonproperties.com. This press release contains forward-looking statements within the meaning of the Federal securities laws. 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 and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. Financial tables follow. BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ---------------------- ---------------------- 2000 1999 2000 1999 ------ ------ ------ ------ (UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Revenue Rental: Base rent $177,953 $158,070 $348,290 $309,679 Recoveries from tenants 22,734 17,252 46,070 34,666 Parking and other 12,289 12,087 25,297 23,011 -------- -------- -------- -------- Total rental revenue 212,976 187,409 419,657 367,356 Development and management services 2,876 3,611 5,739 7,658 Interest and other 1,407 620 2,117 4,266 -------- -------- -------- -------- Total revenue 217,259 191,640 427,513 379,280 -------- -------- -------- -------- Expenses Operating 64,035 60,306 129,212 117,656 General and administrative 8,589 7,352 15,997 13,962 Interest 56,243 49,219 111,458 99,678 Depreciation and amortization 32,395 29,443 64,626 57,237 -------- -------- -------- -------- Total expenses 161,262 146,320 321,293 288,533 -------- -------- -------- -------- Income before minority interests and joint venture income 55,997 45,320 106,220 90,747 Minority interests in property partnerships (240) (136) (436) (4,294) Income from unconsolidated joint ventures 662 229 807 442 -------- -------- -------- -------- Income before minority interest in Operating Partnership 56,419 45,410 106,591 86,895 Minority interest in Operating Partnership (20,193) (16,505) (37,745) (32,217) -------- -------- -------- -------- Income before gain on sale of real estate 36,226 28,905 68,846 54,678 Gain on sale of real estate, net 297 -- 297 -- -------- -------- -------- -------- Net income before preferred dividend 36,523 28,905 69,143 54,678 Preferred dividend (1,643) (1,682) (3,286) (2,521) -------- -------- -------- -------- Net income available to common shareholders $ 34,880 $ 27,223 $ 65,857 $ 52,157 ======== ======== ======== ======== Basic earnings per share: Net income available to common shareholders $ 0.51 $ 0.42 $ 0.97 $ 0.81 ======== ======== ======== ======== Weighted average number of common shares outstanding 67,991 65,534 67,973 64,539 ======== ======== ======== ======== Diluted earnings per share: Net income available to common shareholders $ 0.50 $ 0.41 $ 0.96 $ 0.80 ======== ======== ======== ======== Weighted average number of common and common equivalent shares outstanding 69,582 66,337 69,157 65,161 ======== ======== ======== ========
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
JUNE 30 DECEMBER 31, 2000 1999 ----------- ------------ (UNAUDITED) (IN THOUSANDS, EXCEPT SHARE AMOUNTS) ASSETS ------ Real estate: $5,701,704 $5,609,424 Less: accumulated depreciation (525,201) (470,591) ---------- ---------- Total real estate 5,176,503 5,138,833 Cash and cash equivalents 6,319 12,035 Escrows 33,025 40,254 Investments in securities 28,283 14,460 Tenant and other receivables, net 32,340 28,362 Accrued rental income, net 84,425 82,228 Deferred charges, net 69,599 53,733 Prepaid expenses and other assets 39,074 28,452 Investments in joint ventures 69,486 36,415 ---------- ---------- Total assets $5,539,054 $5,434,772 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Liabilities: Mortgage notes payable $3,157,068 $2,955,584 Unsecured line of credit 238,000 366,000 Accounts payable and accrued expenses 53,922 66,780 Dividends and distributions payable 59,812 50,114 Accrued interest payable 6,127 8,486 Other liabilities 52,497 48,282 ---------- ---------- Total liabilities 3,567,426 3,495,246 ---------- ---------- Commitments and contingencies -- -- ---------- ---------- Minority interests 797,451 781,692 ---------- ---------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 ---------- ---------- Stockholders' equity: Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding -- -- Common stock, $.01 par value, 250,000,000 shares authorized, 68,026,798 and 67,910,434 issued and outstanding in 2000 and 1999, respectively 680 679 Additional paid-in capital 1,076,593 1,067,778 Dividends in excess of earnings (11,670) (10,893) Unearned compensation (954) -- Accumulated other comprehensive income 9,528 -- ---------- ---------- Total stockholders' equity 1,074,177 1,057,564 ---------- ---------- Total liabilities and stockholders' equity $5,539,054 $5,434,772 ========== ==========
FUNDS FROM OPERATIONS (UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, ------------------- ------------------- 2000 1999 2000 1999 ------ ------ ------ ------- Income before minority interests and joint venture income $55,997 $45,320 $106,220 $ 90,747 Add: Real estate depreciation and amortization 32,497 29,238 64,549 56,787 Income from unconsolidated joint ventures 662 229 807 442 Less: Minority property partnership's share of Funds from Operations (266) (129) (490) (3,291) Preferred dividends and distributions (8,250) (8,293) (16,500) (15,505) ------- ------- -------- -------- Funds from operations $80,640 $66,366 $154,586 $129,180 ======= ======= ======== ======== Funds from operations available to common shareholders $59,347 $48,673 $113,767 $ 94,343 ======= ======= ======== ======== Weighted average shares outstanding - basic 67,991 65,534 67,973 64,539 ======= ======= ======== ======== Per share - basic $ 0.87 $ 0.74 $ 1.67 $ 1.46 ======= ======= ======== ======== Weighted average shares outstanding - diluted 82,583 79,329 81,871 77,563 ======= ======= ======== ======== Per share - diluted $ 0.83 $ 0.72 $ 1.61 $ 1.42 ======= ======= ======== ========
BOSTON PROPERTIES, INC PORTFOLIO OCCUPANCY
OCCUPANCY BY LOCATION JUNE 30, 2000 DECEMBER 31, 1999 ------------- ----------------- Greater Boston 97.8% 96.7% Greater Washington, D.C. 97.2% 96.4% Midtown Manhattan 100.0% 97.8% Baltimore, MD 99.8% 99.7% Richmond, VA 100.0% 98.0% Princeton/East Brunswick, NJ 99.8% 98.9% Greater San Francisco 99.1% 96.4% Bucks County, PA 100.0% 100.0% ------------- ----------------- Total Portfolio 98.5% 97.1% ============= =================
OCCUPANCY BY TYPE JUNE 30, 2000 DECEMBER 31, 1999 ------------- ----------------- Class A Office Portfolio 99.4% 97.7% R&D Portfolio 92.0% 93.0% Industrial Portfolio 90.3% 90.4% ------------- ----------------- Total Portfolio 98.5% 97.1% ============= =================