EX-99.1 4 a2101304zex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 [LOGO] BOSTON PROPERTIES SUPPLEMENTAL OPERATING AND FINANCIAL DATA FOR THE QUARTER ENDED DECEMBER 31, 2002 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 INDEX
PAGE PAGE -------- -------- Company Background.............................. 3 Retail Properties -- Lease Expiration Roll Out............................................. 28 Investor Information............................ 4-5 Grand Total -- Office, Office/Technical, Industrial and Retail Properties................ 29 Financial Highlights............................ 6 Boston Area Lease Expiration Roll Out........... 30-31 Consolidated Balance Sheets..................... 7 Washington DC Area Lease Expiration Roll Out.... 32-33 Consolidated Income Statements.................. 8 San Francisco Area Lease Expiration Roll Out.... 34-35 Funds From Operations........................... 9 New York Area Lease Expiration Roll Out......... 36-37 Capital Structure............................... 10 Princeton Area Lease Expiration Roll Out........ 38-39 Debt Analysis................................... 11-14 Other Area Lease Expiration Roll Out............ 40-41 Unconsolidated Joint Ventures................... 15-16 CBD/Suburban Lease Expiration Roll Out.......... 42-43 Portfolio Overview -- Square Footage............ 17 Hotel Performance............................... 44 Property Listing................................ 18-21 Same Property Performance....................... 45 Top 20 Tenants.................................. 22 In-Service Property Performance................. 46 Portfolio Overview -- FFO....................... 23 Capital Expenditures............................ 47 Occupancy Analysis.............................. 24 Value Creation Pipeline -- Acquisitions/Dispositions....................... 48 Office Properties -- Lease Expiration Roll Out.. 25 Value Creation Pipeline -- Development.......... 49 Office/Technical Properties -- Lease Expiration Value Creation Pipeline -- Land Parcels......... 50 Roll Out...................................... 26 Industrial Properties -- Lease Expiration Roll Out........................................... 27
2 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 COMPANY BACKGROUND Boston Properties, Inc. (the "Company"), a self-administered and self-managed real estate investment trust, is one of the largest owners, managers and developers of first-class office properties in the United States, with a significant presence in four core markets: Boston, Washington, D.C., Midtown Manhattan and San Francisco. Boston Properties was founded in 1970 in Boston, where it maintains its headquarters. The Company acquires, develops and manages its properties through full-service regional offices in Boston, New York City, Washington, D.C., San Francisco and Princeton, New Jersey. Its property portfolio primarily comprises first-class office space and also includes hotels and industrial buildings. On December 13, 2002, Boston Properties Limited Partnership, the Company's Operating Partnership ("BPLP") closed on an offering of $750 million in aggregate principal amount of its 6.25% senior unsecured notes due 2013. The notes were priced at 99.65% of their face amount to yield 6.296%. In addition, BPLP reopened this offering and closed on an additional $175 million on January 17, 2003. The additional notes were priced at 99.763% of their face amount to yield 6.28%. BPLP's bonds have been rated Baa2, BBB, BBB by Moody's, Standard & Poor's and FitchRatings, respectively. Since the Company's initial offering in June 1997, the Company has acquired 51 properties adding approximately 20.1 million square feet to its portfolio, representing an investment of approximately $5.8 billion, and the Company has delivered 34 development properties adding approximately 6.9 million square feet to its portfolio, representing an investment of approximately $1.5 billion. In addition, the Company is constructing five office properties and one retail property for a total anticipated investment of approximately $934.7 million. The Company owns or controls land where it can develop an additional 8.8 million square feet. 3 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 INVESTOR INFORMATION 111 Huntington Avenue Boston, MA 02199-7610 (617) 236-3300 (617) 236-3311 (fax)
KEY EMPLOYEES: Mortimer B. Zuckerman................................... Chairman of the Board Edward H. Linde......................................... President, CEO and Director Robert E. Burke......................................... Executive Vice President, Operations Douglas T. Linde........................................ Senior Vice President, CFO and Treasurer
TIMING Quarterly results for 2003 will be announced according to the following anticipated schedule: First Quarter........................................... Late April Second Quarter.......................................... Late July Third Quarter........................................... Late October Fourth Quarter.......................................... Late January
4 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 COMMON STOCK DATA (NYSE:BXP) Boston Properties' common stock is traded primarily on the New York Stock Exchange under the symbol: BXP. BXP's common stock has had the following characteristics (based on New York Stock Exchange closing prices):
4TH QUARTER 2002 3RD QUARTER 2002 2ND QUARTER 2002 1ST QUARTER 2002 ---------------- ---------------- ---------------- ---------------- High Price............................... $ 37.4300 $ 39.8700 $ 41.5500 $ 39.8200 Low Price................................ $ 33.9300 $ 34.5600 $ 37.8800 $ 35.9800 Closing Price............................ $ 36.8600 $ 37.2000 $ 39.9500 $ 39.4500 Dividends per share -- annualized (1).... $ 2.44 $ 2.44 $ 2.44 $ 2.32 Closing dividend yield -- annualized..... 6.62% 6.56% 6.11% 5.88% Closing shares, common units and preferred units (if converted) outstanding (thousands)................ 125,038 125,031 125,017 124,761 Closing market value of shares and units outstanding (thousands)................ $4,608,901 $4,651,153 $4,994,429 $4,921,821
(1) Reflects dividend increase from $0.58 per share to $0.61 per share effective Q2 2002. BPLP UNSECURED SENIOR NOTES Settlement Date............................................. 12/13/02 Principal Amount............................................ $750,000,000(1) Yield....................................................... 6.296% Coupon...................................................... 6.250% Discount.................................................... 99.650% Ratings: Moody's................................................... Baa2 (stable) S&P....................................................... BBB (stable) Fitch..................................................... BBB (stable) Maturity Date............................................... 1/15/13
(1) Reopened for an additional issuance of $175 million on 1/17/03 at a yield of 6.28%. 5 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 FINANCIAL HIGHLIGHTS (UNAUDITED AND IN THOUSANDS)
THREE MONTHS ENDED ----------------------------------------------------------------------- DECEMBER 31, 2002 SEPTEMBER 30, 2002 JUNE 30, 2002 MARCH 31, 2002 ----------------- ------------------ ------------- -------------- Income Items: Revenue.................................. $345,953(1) $313,654(1) $295,595 $279,620 Net straight line rent................... $ 11,938 $ 12,244 $ 12,216 $ 14,784 Lease termination fees................... $ 3,724 $ 1,858 $ 1,227 $ 511 Capitalized interest..................... $ 4,719 $ 4,684 $ 5,261 $ 7,847 Operating Margins [(rental revenues -- rental expenses)/rental revenues]...... 69.1%(2) 67.0% 69.9% 68.8% Net income available to common shareholders before net derivative losses (SFAS No.133)................... $261,348 $ 75,886 $ 58,714 $ 55,613 Funds from operations (FFO) before net derivative losses (SFAS No.133) and after early surrender lease payments received -- basic...................... $137,852 $120,358 $120,263 $108,820 Company's share.......................... $113,464 $ 98,980 $ 98,165 $ 88,929 FFO per share before net derivative losses (SFAS 133) and after cash basis early surrender lease income -- basic.................................. $ 1.19 $ 1.04 $ 1.07 $ 0.98 FFO per share before net derivative losses (SFAS 133) and after cash basis early surrender lease income -- diluted................................ $ 1.14 $ 1.00 $ 1.02 $ 0.93 Net income available to common shareholders per share -diluted........ $ 2.70 $ 0.74 $ 0.59 $ 0.60 Dividends per share...................... $ 0.61 $ 0.61 $ 0.61 $ 0.58 Funds available for distribution (FAD) (3).................................... $112,377 $ 95,901 $ 87,470 $ 81,799 Ratios: Interest Coverage Ratio (excluding capitalized interest) -- cash basis (4).................................... 2.87 2.70 2.71 2.57 Interest Coverage Ratio (including capitalized interest) -- cash basis (4).................................... 2.69 2.50 2.51 2.29 FFO Payout Ratio......................... 53.51% 61.00% 59.80% 62.37% FAD Payout Ratio......................... 62.88% 73.44% 78.15% 78.92%
DECEMBER 31, 2002 SEPTEMBER 30, 2002 JUNE 30, 2002 MARCH 31, 2002 ----------------- ------------------ ------------- -------------- Capitalization: Total Debt............................... $5,147,220 $5,466,692 $4,415,724 $4,361,233 Price @ Quarter End...................... $ 36.8600 $ 37.2000 $ 39.9500 $ 39.4500 Equity Value @ Quarter End............... $4,608,901 $4,651,153 $4,994,429 $4,921,821 Total Market Capitalization.............. $9,756,121 $10,117,845 $9,410,153 $9,283,054 Debt/Total Market Capitalization......... 52.76% 54.03% 46.93% 46.98%
(1) Includes gross revenues from hotels of $24,779 and $20,007 for the three months ended December 31, 2002 and September 30, 2002, respectively. (2) Exclusive of the gross up of reimbursable electricity amounts totalling $6,476, $6,329, $6,404 and $5,928 for the quarters ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. (3) FAD is defined as FFO after adjustments for second generation lease commissions and tenant improvements, recurring capital expenditures, straight-line rents, preferred dividends and distributions and other non-cash charges. (4) Amortization of financing costs were $1,436, $1,274, $1,346 and $1,309 for the quarters ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. These amounts were not included in the calculation of interest coverage ratio. 6 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 CONSOLIDATED BALANCE SHEETS (IN THOUSANDS)
DECEMBER 31, 2002 SEPTEMBER 30, 2002 JUNE 30, 2002 MARCH 31, 2002 ----------------- ------------------ ------------- -------------- (UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED) ASSETS Real estate................................ $7,781,684 $8,139,450 $6,972,779 $6,573,532 Development in progress.................... 448,576 412,981 431,288 729,889 Land held for future development........... 215,866 213,769 203,518 209,919 Real estate held for sale.................. 224,585 -- -- -- Less accumulated depreciation........ (822,933) (836,418) (795,852) (755,156) ---------- ---------- ---------- ---------- Total real estate.................... 7,847,778 7,929,782 6,811,733 6,758,184 Cash and cash equivalents.................. 55,275 28,793 81,640 93,031 Escrows.................................... 41,906 28,200 22,776 23,192 Tenant and other receivables, net.......... 20,458 48,716 31,298 36,846 Accrued rental income, net................. 165,321 156,818 146,100 133,885 Deferred charges, net...................... 176,545 148,435 148,239 127,948 Prepaid expenses and other assets.......... 18,015 38,752 16,081 30,235 Investments in unconsolidated joint ventures................................. 101,905 101,819 100,804 98,071 ---------- ---------- ---------- ---------- Total assets......................... $8,427,203 $8,481,315 $7,358,671 $7,301,392 ========== ========== ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Mortgage notes and bonds payable......... $4,267,119 $4,422,692 $4,415,724 $4,361,233 Unsecured senior notes, net of discount............................... 747,375 -- -- -- Unsecured bridge loan.................... 105,683 1,000,000 -- -- Unsecured line of credit................. 27,043 44,000 -- -- Accounts payable and accrued expenses.... 73,846 69,097 52,655 56,125 Dividends and distributions payable...... 81,226 81,329 83,707 79,985 Interest rate contracts.................. 14,514 15,115 11,568 8,635 Accrued interest payable................. 25,141 18,265 17,635 15,032 Other liabilities........................ 81,085 70,292 65,142 75,465 ---------- ---------- ---------- ---------- Total liabilities.................... 5,423,032 5,720,790 4,646,431 4,596,475 ---------- ---------- ---------- ---------- Commitments and contingencies.............. -- -- -- -- ---------- ---------- ---------- ---------- Minority interests......................... 844,581 804,229 825,730 829,687 ---------- ---------- ---------- ---------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 0 issued and outstanding at December 31, 2002 September 30, 2002 and 2,000,000 outstanding at June 30, 2002 and March 31, 2002....................... -- -- 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, 95,362,990, 95,273,202, 91,545,294 and 91,137,874 issued and outstanding, respectively... 954 953 915 911 Additional paid-in capital............... 1,981,833 1,977,560 1,821,762 1,809,836 Earnings in excess of dividends/(dividends in excess of earnings).............................. 199,442 (2,532) (16,152) (15,084) Treasury common stock, at cost........... (2,722) (2,722) (2,722) (2,722) Unearned compensation.................... (2,899) (3,355) (3,598) (3,843) Accumulated other comprehensive loss..... (17,018) (13,608) (13,695) (13,868) ---------- ---------- ---------- ---------- Total stockholders' equity............. 2,159,590 1,956,296 1,786,510 1,775,230 ---------- ---------- ---------- ---------- Total liabilities and stockholders' equity............................. $8,427,203 $8,481,315 $7,358,671 $7,301,392 ========== ========== ========== ==========
7 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 CONSOLIDATED INCOME STATEMENTS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED ---------------------------------------------- 31-DEC-02 30-SEP-02 30-JUN-02 31-MAR-02 --------- --------- --------- ---------- Revenue: Rental Base Rent (1) (2)....................................... $265,559 $241,254 $242,630 $228,939 Recoveries from tenants................................. 38,929 35,544 36,487 33,615 Parking and other....................................... 13,217 13,056 12,458 12,096 -------- -------- -------- -------- Total rental revenue.................................. 317,705 289,854 291,575 274,650 Hotel revenues............................................ 24,779 20,007 -- -- Development and management services....................... 2,769 2,571 1,710 3,698 Interest and other (3).................................... 700 1,222 2,310 1,272 -------- -------- -------- -------- Total revenue......................................... 345,953 313,654 295,595 279,620 -------- -------- -------- -------- Expenses: Operating (4)............................................. 61,428 63,946 57,845 56,584 Taxes..................................................... 41,298 35,629 34,802 33,958 Hotel operating........................................... 17,562 13,524 -- -- General and administrative (5)............................ 12,703 9,956 13,564 11,069 Interest (6).............................................. 72,146 68,425 67,327 63,787 Depreciation and amortization............................. 53,957 45,514 43,779 42,927 Net derivative losses (SFAS No.133)....................... 1,461 5,284 4,826 303 Loss on investments in other companies.................... -- -- -- 4,297 -------- -------- -------- -------- Total expenses........................................ 260,555 242,278 222,143 212,925 -------- -------- -------- -------- Income before minority interests and income from unconsolidated joint ventures............................. 85,398 71,376 73,452 66,695 Minority interest in property partnerships.................. 162 720 712 471 Income from unconsolidated joint ventures................... 2,083 2,530 1,659 1,682 -------- -------- -------- -------- Income before minority interest in Operating Partnership.... 87,643 74,626 75,823 68,848 Minority interest in Operating Partnership (7).............. (20,867) (18,688) (19,555) (18,361) -------- -------- -------- -------- Income before gain on sales, net of minority interest....... 66,776 55,938 56,268 50,487 Gain on sales of real estate, net........................... 187,562 -- -- -- -------- -------- -------- -------- Income before gain on sales of land held for development.... 254,338 55,938 56,268 50,487 Gain on sales of land held for development, net............. -- 3,644 -- -- -------- -------- -------- -------- Income before discontinued operations....................... 254,338 59,582 56,268 50,487 Income from discontinued operations, net of minority interest.................................................. 127 175 150 681 Gain on sales of real estate from discontinued operations, net of minority interest.................................. 7,645 11,910 -- 5,840 -------- -------- -------- -------- Income before extraordinary items and preferred dividend.... 262,110 71,667 56,418 57,008 Extraordinary items......................................... (1,964) -- -- -- -------- -------- -------- -------- Income before preferred dividend............................ 260,146 71,667 56,418 57,008 Preferred dividend.......................................... -- (126) (1,643) (1,643) -------- -------- -------- -------- Net income available to common shareholders................. $260,146 $ 71,541 $ 54,775 $ 55,365 ======== ======== ======== ======== INCOME PER SHARE OF COMMON STOCK (EPS) Net income available to common shareholders per share -- basic................................................... $ 2.73 $ 0.75 $ 0.60 $ 0.61 ======== ======== ======== ======== Net income available to common shareholders per share -- diluted................................................. $ 2.70 $ 0.74 $ 0.59 $ 0.60 ======== ======== ======== ========
(1) Base Rent is reported on a straight-line basis over the terms of the respective leases. The impact of the straight-line rent adjustment increased revenue by $11,938, $12,244, $12,216 and $14,784 for the three months ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. (2) Includes hotel lease payments of $8,023 and $4,322 for the three months ended June 30, 2002 and March 31, 2002, respectively. (3) Includes a refund of $1,300 related to prior years' tax matter for the three months ended June 30, 2002. (4) Includes hotel expenses of $1,844 and $1,327 for the three months ended June 30, 2002 and March 31, 2002, respectively. (5) Includes a $2.8 million write-off of leasing costs related to the termination of the lease with Arthur Andersen for the three months ended June 30, 2002. (6) Interest expense is reported net of capitalized interest of $4,719, $4,684, $5,261 and $7,847 for the three months ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. (7) Equals minority interest percent of 17.69%, 17.76%, 18.37% and 18.28%, respectively of income before minority interest in Operating Partnership after deduction for preferred dividends and distributions for the three months ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. (8) Certain prior period amounts have been reclassified to conform to current period presentation. 8 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 FUNDS FROM OPERATIONS (IN THOUSANDS, EXCEPT FOR PER SHARE AMOUNTS) (UNAUDITED)
THREE MONTHS ENDED ---------------------------------------------- 31-DEC-02 30-SEP-02 30-JUN-02 31-MAR-02 --------- --------- --------- ---------- Income from operations before net derivative losses (SFAS No.133), minority interests and income from unconsolidated joint ventures............................................ $ 85,398 $ 71,376 $ 73,452 $ 66,695 Add: Real estate depreciation and amortization (1)........... 56,072 46,971 45,032 44,499 Income from discontinued operations..................... 154 213 184 833 Income from unconsolidated joint ventures............... 2,083 2,530 1,659 1,682 Less: Minority property partnership's share of funds from operations............................................ 1,390 521 593 719 Preferred dividends and distributions................... 5,926 6,162 8,223 8,400 -------- -------- -------- -------- Funds from operations (FFO)................................. 136,391 114,407 111,511 104,590 Add (subtract): Net derivative losses (SFAS No.133)..................... 1,461 5,284 4,826 303 Early surrender lease payments received -- contractual basis................................................. -- 667 3,926 3,927 FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received................... $137,852 $120,358 $120,263 $108,820 -------- -------- -------- -------- FFO available to common shareholders before net derivative losses (SFAS No. 133) and after early surrender lease payments received (3)..................................... $113,464 $ 98,980 $ 98,165 $ 88,929 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after cash basis early surrender lease income -- basic.... $ 1.19 $ 1.04 $ 1.07 $ 0.98 ======== ======== ======== ======== Weighted average shares outstanding -- basic................ 95,313 94,904 91,357 90,932 ======== ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received -- diluted................................................... $ 1.14 $ 1.00 $ 1.02 $ 0.93 ======== ======== ======== ======== FFO per share after net derivative losses (SFAS No.133) and before early surrender lease payments received -- diluted................................................... $ 1.13 $ 0.95 $ 0.95 $ 0.90 ======== ======== ======== ======== Weighted average shares outstanding -- diluted.............. 105,631 105,725 105,982 105,768 ======== ======== ======== ========
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
DECEMBER 31, 2002 SEPTEMBER 30, 2002 JUNE 30, 2002 ------------------------------- ------------------------------- ------------------------------- INCOME SHARES INCOME SHARES INCOME SHARES (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR) (NUMERATOR) (DENOMINATOR) ------------- --------------- ------------- --------------- ------------- --------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income............. $137,852 115,800 $120,358 115,402 $120,263 111,923 Effect of Dilutive Securities Convertible Preferred Units............ 5,926 9,236 6,036 9,344 6,580 10,342 Convertible Preferred Stock............ -- -- 126 200 1,643 2,625 Stock Options and other............ -- 1,082 -- 1,276 -- 1,659 -------- ------- -------- ------- -------- ------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received........... $143,778 126,118 $126,520 126,222 $128,486 126,549 ======== ======= ======== ======= ======== ======= Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received (2)................ $120,422 105,631 $105,974 105,725 $107,605 105,982 ======== ======= ======== ======= ======== ======= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received -- basic.............. $ 1.19 $ 1.04 $ 1.07 ======== ======== ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received -- diluted............ $ 1.14 $ 1.00 $ 1.02 ======== ======== ======== MARCH 31, 2002 ------------------------------- INCOME SHARES (NUMERATOR) (DENOMINATOR) ------------- --------------- Basic FFO before net derivative losses (SFAS No.133) and after early surrender lease income............. $108,820 111,272 Effect of Dilutive Securities Convertible Preferred Units............ 6,757 10,823 Convertible Preferred Stock............ 1,643 2,625 Stock Options and other............ -- 1,387 -------- ------- Diluted FFO before net derivative losses (SFAS No.133) and after early surrender lease payments received........... $117,220 126,107 ======== ======= Company's share of diluted FFO before net derivative losses (SFAS 133) and after early surrender lease payments received (2)................ $ 98,314 105,768 ======== ======= FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received -- basic.............. $ 0.98 ======== FFO per share before net derivative losses (SFAS No.133) and after early surrender lease payments received -- diluted............ $ 0.93 ========
(1) Real estate depreciation includes the Company's share of joint venture real estate depreciation of $2,848, $2,170, $1,947 and $2,187 less corporate related depreciation of $733, $733, $711 and $632 for the three months ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002, respectively. (2) Based on weighted average shares for the quarter. Company's share for the quarter ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002 was 82.31%, 82.24%, 81.63% and 81.72%, respectively. (3) Based on weighted average diluted shares for the quarter. Company's share for the quarter ended December 31, 2002, September 30, 2002, June 30, 2002 and March 31, 2002 was 83.76%, 83.76%, 83.75% and 83.87%, respectively. 9 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 CAPITAL STRUCTURE DEBT (IN THOUSANDS)
AGGREGATE PRINCIPAL DECEMBER 31, 2002 ------------------- Mortgage Notes and Bonds Payable(1)......................... $4,267,119 Unsecured Senior Notes, net of discount..................... 747,375 Unsecured Bridge Loan....................................... 105,683 Unsecured Line of Credit.................................... 27,043 ---------- Total Debt (2).............................................. $5,147,220 ==========
(1) Includes $146.9 million drawn on the unsecured line of credit that is secured by 875 Third Avenue. (2) Does not include joint venture debt outstanding. See page 15 for detailed joint venture information. EQUITY (IN THOUSANDS)
COMMON SHARES & UNITS STOCK OUTSTANDING EQUIVALENTS EQUIVALENT (1) -------------- ----------- -------------- Common Stock................................................ 95,363 95,363 $3,515,080 Operating Partnership Units................................. 20,474 20,474 754,672 Preferred Operating Partnership Units Series One................................................ 2,378 2,114 77,922 Series Two................................................ 5,401 7,087 261,227 ---------- ---------- Total Equity................................................ 125,038 $4,608,901 ========== ========== Total Market Capitalization................................. $9,756,121 ==========
(1) Value based on December 31, 2002 closing price of $36.86 10 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 DEBT ANALYSIS DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS)
2003 2004 2005 2006 2007 THEREAFTER TOTAL ---------- -------- -------- -------- -------- ---------- ---------- Amount......................................... $1,064,222 $411,855 $285,387 $284,458 $182,632 $2,918,666 $5,147,220 Weighted Average Rate.......................... 3.38% 4.43% 6.93% 7.79% 6.59% 6.92% 6.03%
UNSECURED DEBT UNSECURED LINE OF CREDIT -- MATURES MARCH 31, 2003 (1) (IN THOUSANDS)
OUTSTANDING LETTERS OF REMAINING FACILITY @12/31/02 CREDIT CAPACITY --------------------- ----------- ---------- ---------- 605,00$0....... $27,043 $1,854 $429,201(2)
(1) The maturity date has been extended to Janury 17, 2006. (2) $146.9 million drawn on the unsecured line of credit is secured by 875 Third Avenue. UNSECURED BRIDGE LOAN -- MATURES SEPTEMBER 2003 (IN THOUSANDS) OUTSTANDING @12/31/02 --------------------- $105,683 UNSECURED SENIOR NOTES, NET -- MATURE JANUARY 15, 2013 (IN THOUSANDS) OUTSTANDING @12/31/02 --------------------- $747,375 UNSECURED AND SECURED DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Unsecured Debt.............................................. 17.10% 5.72% 8.6 years Secured Debt................................................ 82.90% 6.09% 4.7 years ------ ---- --------- Total Debt.................................................. 100.00% 6.03% 5.4 years ====== ==== =========
FLOATING AND FIXED RATE DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE % OF DEBT AVERAGE RATE MATURITY --------- ------------ ---------------- Floating Rate Debt.......................................... 24.42% 3.04% 0.7 years Fixed Rate Debt............................................. 75.58% 7.17% 6.2 years ------ ---- --------- Total Debt.................................................. 100.00% 6.03% 5.4 years ====== ==== =========
11 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 SENIOR UNSECURED DEBT COVENANT COMPLIANCE RATIOS (IN THOUSANDS)
DECEMBER 31, 2002 ----------------- Capitalized Property Value.................................. $10,597,030 Cash and Cash Equivalents................................... 55,275 Undeveloped Land, at Cost................................... 215,866 Development in Process, at Cost (including Joint Venture %)................................................ 501,431 ----------- Total Assets................................................ $11,369,602 =========== Unencumbered Assets......................................... $ 2,813,601 ----------- Secured Debt (Fixed and Variable) (1)....................... $ 4,261,315 Joint Venture Debt.......................................... 236,807 Contingent Liabilities & Letters of Credit.................. 41,679 Unsecured Debt (2).......................................... 882,726 ----------- Total Outstanding Debt...................................... $ 5,422,527 =========== Consolidated EBITDA......................................... $ 216,853 ----------- Interest Expense............................................ $ 72,204 -----------
COVENANT RATIOS TEST ACTUAL --------------- ------------------ -------- Total Outstanding Debt/Total Assets......................... Less than 60% 47.7% Secured Debt/Total Assets................................... Less than 50% 39.6% Interest Coverage (Annualized Consolidated EBITDA to Greater than 1.50x Annualized Interest Expense).............................. 3.00 Unencumbered Assets/Unsecured Debt.......................... Greater than 150% 318.7% ------- Unencumbered GAAP NOI....................................... $54,389 ------- % of unencumbered NOI to Total NOI.......................... 25.1% ------- # of unencumbered properties................................ 57 -------
---------------------------------------- (1) Excludes Fair Value Adjustment of $5.8 million. (2) Excludes Debt Discount of $2.6 million. 12 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS)
PROPERTY 2003 2004 2005 2006 2007 THEREAFTER TOTAL -------- -------- -------- -------- -------- -------- ---------- -------- Citigroup Center................................... $ 5,763 $ 6,191 $ 6,651 $ 7,145 $ 7,676 $483,253 $516,679 5 Times Square 372,905 -- -- -- -- -- 372,905 Embarcadero Center One, Two and Federal Reserve.... 4,498 4,809 5,141 5,496 5,877 278,913 304,734 Prudential Center.................................. 4,299 4,591 4,919 5,256 5,619 259,705 284,389 280 Park Avenue.................................... 2,800 3,022 3,261 3,519 3,798 248,794 265,194 599 Lexington Avenue............................... -- -- 225,000 -- -- -- 225,000 Times Square Tower................................. -- 222,196 -- -- -- -- 222,196 111 Huntington Avenue.............................. 203,000 -- -- -- -- -- 203,000 Embarcadero Center Four............................ 3,315 3,544 3,797 4,061 4,346 129,711 148,774 875 Third Avenue (1)............................... 146,902 -- -- -- -- -- 146,902 Embarcadero Center Three........................... 2,206 2,351 2,506 2,671 132,726 -- 142,460 Riverfront Plaza................................... 2,720 2,905 3,104 3,314 3,540 95,327 110,910 Democracy Center................................... 1,828 1,961 2,103 2,257 2,421 93,728 104,298 Embarcadero Center West Tower...................... 1,449 1,546 1,649 90,415 -- -- 95,059 100 East Pratt Street.............................. 1,836 1,964 2,100 2,246 2,401 78,105 88,652 601 and 651 Gateway Boulevard...................... 826 899 977 1,062 1,155 83,566 88,485 Reservoir Place.................................... 2,859 3,061 3,279 60,065 -- -- 69,264 One & Two Reston Overlook.......................... 818 65,908 -- -- -- -- 66,726 2300 N Street...................................... 66,000 -- -- -- -- -- 66,000 202, 206 & 214 Carnegie Center..................... 610 663 719 780 845 58,217 61,834 New Dominion Technology Park, Building One......... 102 91 654 1,282 1,378 54,042 57,549 Capital Gallery.................................... 1,293 1,404 1,524 50,651 -- -- 54,872 504, 506 & 508 Carnegie Center..................... 979 1,052 1,136 1,221 1,314 40,915 46,617 Waltham Weston Corporate Center.................... -- 44,840 -- -- -- -- 44,840
---------------------------------------- (1) Secured by draw on unsecured line of credit. Maturity date extended to Januray 17, 2006 subsequest to December 31, 2002. 13 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS)
PROPERTY 2003 2004 2005 2006 2007 THEREAFTER TOTAL -------- ---------- -------- -------- -------- -------- ---------- ---------- 10 & 20 Burlington Mall Rd & 91 Hartwell....... 589 688 741 795 855 35,589 39,257 10 Cambridge Center............................ 514 607 659 715 777 31,436 34,708 1301 New York Avenue........................... 1,217 1,315 1,417 1,531 1,651 23,409 30,540 2600 Tower Oaks Boulevard...................... -- 30,218 -- -- -- -- 30,218 Sumner Square.................................. 481 518 557 599 645 26,936 29,736 Quorum Office Park............................. 28,818(1) -- -- -- -- -- 28,818 Eight Cambridge Center......................... 495 557 601 649 702 24,486 27,490 510 Carnegie Center............................ 547 588 635 683 735 23,519 26,707 Lockheed Martin Building....................... 601 641 685 732 782 21,799 25,240 University Place............................... 655 702 752 806 864 20,338 24,117 Reston Corporate Center........................ 574 612 654 698 745 20,523 23,806 Orbital Sciences -- Phase II................... 23,611(1) -- -- -- -- -- 23,611 191 & 201 Spring Street........................ 376 443 482 20,773 -- -- 22,074 Shaws Supermarket.............................. 20,717 -- -- -- -- -- 20,717 NIMA Building.................................. 497 530 566 604 644 17,785 20,626 Bedford Business Park.......................... 583 690 751 818 890 16,859 20,591 40 Shattuck Road............................... 15,939 -- -- -- -- -- 15,939 101 Carnegie Center............................ 348 375 406 6,622 -- -- 7,751 302 Carnegie Center............................ 7,594(1) -- -- -- -- -- 7,594 New Dominion Technology Park, Bldg. 2.......... -- -- 7,558 -- -- -- 7,558 Montvale Center................................ 160 173 189 6,762 -- -- 7,284 Hilltop Business Center........................ 172 200 214 230 246 4,336 5,398 ---------- -------- -------- -------- -------- ---------- ---------- 931,496 411,855 285,387 284,458 182,632 2,171,291 4,267,119 ---------- -------- -------- -------- -------- ---------- ---------- Unsecured Senior Notes......................... -- -- -- -- -- 747,375 747,375 Unsecured Line of Credit....................... 27,043(1)(2) -- -- -- -- -- 27,043 Unsecured Bridge Loan.......................... 105,683(1) -- -- -- -- -- 105,683 ---------- -------- -------- -------- -------- ---------- ---------- $1,064,222 $411,855 $285,387 $284,458 $182,632 $2,918,666 $5,147,220 ========== ======== ======== ======== ======== ========== ==========
---------------------------------------- (1) Outstanding balances were repaid in full on January 17, 2003 with proceeds from the offering of the $175 million senior unsecured notes and cash. (2) Maturity date extended to January 17, 2006 subsequent to December 31, 2002. 14 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 UNCONSOLIDATED JOINT VENTURES MISCELLANEOUS BALANCE SHEET INFORMATION (unaudited and in thousands) as of December 31, 2002
ONE MARKET 140 265 TWO 901 FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY FREEDOM NEW YORK SQUARE NORTH SQUARE STREET STREET SQUARE SQUARE (2) AVENUE (2) -------- -------- ------------ -------- -------- --------- ---------- ---------- Total Equity (1)................... $ 387 $13,261 $31,662 $ 5,450 $22,216 $ 7,376 $ 8,095 $13,458 ======= ======= ======= ======= ======= ======= ======= ======= Mortgage/Construction loans payable (1).............................. $18,940 $48,637 $69,827 $14,061 $18,897 $30,949 $32,853 $ 2,643 ======= ======= ======= ======= ======= ======= ======= ======= BXP's nominal ownership percentage....................... 25.00% 50.00% 51.00% 25.00% 35.00% 50.00% 50.00% 25.00% ======= ======= ======= ======= ======= ======= ======= ======= COMBINED --------- Total Equity (1)................... $101,905 ======== Mortgage/Construction loans payable (1).............................. $236,807 ======== BXP's nominal ownership percentage.......................
RESULTS OF OPERATIONS for the three months ended December 31, 2002
ONE ONE MARKET 140 265 TWO 901 FREEDOM FREEDOM SQUARE METROPOLITAN KENDRICK FRANKLIN DISCOVERY FREEDOM NEW YORK SQUARE SQUARE NORTH SQUARE STREET STREET SQUARE SQUARE (2) AVENUE (2) ----------------------------------- -------- -------- ------------ -------- -------- --------- ---------- ---------- REVENUE Total revenue...................... $3,596 $ 5,017 $ 6,162 $ 2,800 $ 3,500 $ 2,638 $ 2,318 $ -- ------ ------- ------- ------- ------- ------- ------- ------- EXPENSES Operating.......................... 884 1,514 1,950 511 1,211 434 679 -- ------ ------- ------- ------- ------- ------- ------- ------- NET OPERATING INCOME............... 2,712 3,503 4,212 2,289 2,289 2,204 1,639 -- Interest........................... 1,475 1,888 2,844 1,062 409 510 286 -- Depreciation and amortization...... 747 1,318 1,203 352 757 437 483 -- ------ ------- ------- ------- ------- ------- ------- ------- NET INCOME......................... $ 490 $ 297 $ 165 $ 875 $ 1,123 $ 1,257 $ 870 $ -- ====== ======= ======= ======= ======= ======= ======= ======= BXP's share of net income.......... $ 123 $ 149 $ 84 $ 271(4) $ 393 $ 628 $ 435 $ -- ====== ======= ======= ======= ======= ======= ======= ======= BXP's share of Funds from Operations....................... $ 619(4) $ 808 $ 698 $ 613(4) $ 658 $ 847 $ 676 $ -- ====== ======= ======= ======= ======= ======= ======= ======= ONE FREEDOM SQUARE COMBINED ----------------------------------- --------- REVENUE Total revenue...................... $ 26,031(3) -------- EXPENSES Operating.......................... 7,183 -------- NET OPERATING INCOME............... 18,848 Interest........................... 8,474 Depreciation and amortization...... 5,297 -------- NET INCOME......................... $ 5,077 ======== BXP's share of net income.......... $ 2,083 ======== BXP's share of Funds from Operations....................... $ 4,919 ========
---------------------------------------- (1) Represents the Company's share. (2) Property is currently under development. (3) The impact of the straight-line rent adjustment increased revenue by $2,194 for the three months ended December 31, 2002. (4) Reflects the changes in the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreements. 15 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*) DEBT MATURITIES AND PRINCIPAL PAYMENTS (IN THOUSANDS)
2003 2004 2005 2006 2007 THEREAFTER TOTAL -------- -------- -------- -------- -------- ---------- -------- Amount............................................. $51,696 $34,855 $4,807 $2,342 $2,534 $140,573 $236,807 Weighted Average Rate.............................. 3.09% 3.51% 5.25% 7.89% 7.90% 7.94% 6.17%
FLOATING AND FIXED RATE DEBT ANALYSIS
WEIGHTED WEIGHTED AVERAGE AVERAGE % OF DEBT RATE MATURITY --------- -------- --------- Floating Rate Debt.......................................... 36.04% 3.04% 1.2 years Fixed Rate Debt............................................. 63.96% 7.93% 8.1 years ------ ---- --------- Total Debt.................................................. 100.00% 6.17% 5.6 years ====== ==== =========
DEBT MATURITIES AND PRINCIPAL PAYMENTS BY PROPERTY (IN THOUSANDS)
PROPERTY 2003 2004 2005 2006 2007 THEREAFTER TOTAL -------- -------- -------- -------- -------- -------- ---------- -------- Metropolitan Square (1)............................ $ 704 $ 764 $ 830 $ 901 $ 978 $ 65,650 $ 69,827 Market Square North (2)............................ 795 860 926 1,001 1,080 43,975 48,637 Two Freedom Square (2)............................. -- 32,853 -- -- -- -- 32,853 Discovery Square (2)............................... 30,949 -- -- -- -- -- 30,949 One Freedom Square (3)............................. 205 221 239 258 279 17,738 18,940 265 Franklin Street (4)............................ 18,897 -- -- -- -- -- 18,897 140 Kendrick Street (3)............................ 146 157 169 182 197 13,210 14,061 901 New York Avenue (3)............................ -- -- 2,643 -- -- -- 2,643 ------- ------- ------ ------ ------ -------- -------- $51,696 $34,855 $4,807 $2,342 $2,534 $140,573 $236,807 ======= ======= ====== ====== ====== ======== ========
---------------------------------------- (*) All amounts represent the Company's share. (1) Boston Properties has a 51% interest in this property. (2) Boston Properties has a 50% interest in this property. (3) Boston Properties has a 25% interest in this property. (4) Boston Properties has a 35% interest in this property. 16 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 PORTFOLIO OVERVIEW--SQUARE FOOTAGE RENTABLE SQUARE FEET OF IN-SERVICE PROPERTIES BY LOCATION AND TYPE OF PROPERTY
GEOGRAPHIC AREA OFFICE (1) OFFICE/TECHNICAL INDUSTRIAL TOTAL % OF TOTAL --------------- ---------- ---------------- ---------- ---------- ---------- Greater Boston............................................. 7,463,442(2) 545,206 152,009 8,160,657 25.54% Greater Washington......................................... 6,116,483(3) 971,045 -- 7,087,528 22.18% Greater San Francisco...................................... 4,701,539 144,366 60,000 4,905,905 15.35% Midtown Manhattan.......................................... 7,255,976 -- -- 7,255,976 22.71% Princeton/East Brunswick, NJ............................... 2,308,181 -- -- 2,308,181 7.22% Baltimore, MD.............................................. 1,176,029 -- -- 1,176,029 3.68% Richmond, VA............................................... 899,586 -- -- 899,586 2.82% Bucks County, PA........................................... -- -- 161,000 161,000 0.50% ---------- --------- ------- ---------- ------ 29,921,236 1,660,617 373,009 31,954,862 100.00% ========== ========= ======= ========== ====== % of Total................................................. 93.64% 5.20% 1.17% 100.00%
HOTEL PROPERTIES
HOTEL PROPERTIES ------------------------------------------------------------------------ NUMBER OF SQUARE ROOMS FEET ---------- -------- Long Wharf Marriott, Boston, MA............................. 402 420,000 Cambridge Center Marriott, Cambridge, MA.................... 431 330,400 Residence Inn by Marriott, Cambridge, MA.................... 221 187,474 ----- ------- Total Hotel Properties...................................... 1,054 937,874 ===== =======
STRUCTURED PARKING
NUMBER OF SQUARE SPACES FEET ---------- --------- Total Structured Parking.................................... 20,710 6,719,991 ====== =========
---------------------------------------- (1) Includes retail square footage of approximately 1,200,000. (2) Includes 343,913 square feet at 265 Franklin Street which is 35% owned by Boston Properties and 380,987 square feet at 140 Kendrick Street which is 25% owned by Boston Properties. (3) Includes 410,308 square feet at One Freedom Square which is 25% owned by Boston Properties, 587,217 square feet at Metropolitan Square which is 51% owned by Boston Properties, 401,279 square feet at Market Square North which is 50% owned by Boston Properties and 181,019 square feet at Discovery Square which is 50% owned by Boston Properties. 17 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PROPERTY LISTING AS OF DECEMBER 31, 2002
ANNUALIZED REVENUE NUMBER OF PER ENCUMBERED GREATER BOSTON SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF (Y/N) -------------- --------------------------- ---------- ----------- ----------- ------------ ----------- Office 800 Boylston Street -- The Prudential Center........... CBD Boston MA 1 1,175,218 92.2% $37.75 Y (1)111 Huntington Avenue -- The Prudential Center....... CBD Boston MA 1 854,129 98.2% 45.62 Y 101 Huntington Avenue -- The Prudential Center........... CBD Boston MA 1 510,983 80.9% 40.40 Y (2)The Shops at the Prudential Center...................... CBD Boston MA 1 557,946 97.6% 45.78 Y 265 Franklin Street (35% ownership).................. CBD Boston MA 1 343,913 67.9% 55.52 Y One Cambridge Center.......... East Cambridge MA 1 215,385 94.0% 44.24 N Three Cambridge Center........ East Cambridge MA 1 107,484 100.0% 28.80 N Eight Cambridge Center........ East Cambridge MA 1 177,226 100.0% 30.96 Y Ten Cambridge Center.......... East Cambridge MA 1 152,664 100.0% 34.32 Y Eleven Cambridge Center....... East Cambridge MA 1 79,616 100.0% 41.87 N University Place.............. Mid-Cambridge MA 1 195,282 100.0% 34.65 Y Reservoir Place............... Route 128 Mass Turnpike MA 1 522,760 84.7% 35.43 Y 204 Second Avenue............. Route 128 Mass Turnpike MA 1 40,974 100.0% 27.56 N 140 Kendrick Street (25% ownership).................. Route 128 Mass Turnpike MA 3 380,987 100.0% 27.95 Y 170 Tracer Lane............... Route 128 Mass Turnpike MA 1 73,258 55.0% 34.57 N Waltham Office Center......... Route 128 Mass Turnpike MA 3 130,209 84.8% 29.67 N 195 West Street............... Route 128 Mass Turnpike MA 1 63,500 100.0% 46.35 N 200 West Street............... Route 128 Mass Turnpike MA 1 248,048 100.0% 34.74 N 10 & 20 Burlington Mall Road Route 128 Northwest MA 2 156,416 88.7% 28.48 Y Bedford Business Park......... Route 128 Northwest MA 1 90,000 100.0% 20.59 Y 32 Hartwell Avenue............ Route 128 Northwest MA 1 69,154 100.0% 28.88 N 91 Hartwell Avenue............ Route 128 Northwest MA 1 121,215 91.3% 34.26 Y 92 Hayden Avenue.............. Route 128 Northwest MA 1 31,100 100.0% 51.71 N 100 Hayden Avenue............. Route 128 Northwest MA 1 55,924 100.0% 32.90 N 33 Hayden Avenue.............. Route 128 Northwest MA 1 75,216 100.0% 38.58 N Lexington Office Park......... Route 128 Northwest MA 2 167,293 78.6% 30.12 N 191 Spring Street............. Route 128 Northwest MA 1 162,700 100.0% 30.79 Y 181 Spring Street............. Route 128 Northwest MA 1 53,595 41.2% 34.91 Y 201 Spring Street............. Route 128 Northwest MA 1 102,500 100.0% 32.33 Y 40 Shattuck Road.............. Route 128 Northwest MA 1 120,000 92.2% 25.87 Y Quorum Office Park............ Route 128 Northwest MA 2 259,918 100.0% 17.61 Y(3) Newport Office Park........... Route 128 South MA 1 168,829 44.6% 25.10 N -- --------- ----- ------ 39 7,463,442 91.0% $36.91 -- --------- ----- ------ Office/Technical Fourteen Cambridge Center..... East Cambridge MA 0 67,362 100.0% 21.78 N Bedford Business Park......... Route 128 Northwest MA 2 383,704 100.0% 14.87 Y 17 Hartwell Avenue............ Route 128 Northwest MA 1 30,000 100.0% 11.00 N 164 Lexington Road............ Route 128 Northwest MA 1 64,140 100.0% 10.27 N -- --------- ----- ------ 5 545,206 100.0% $14.97 -- --------- ----- ------ Industrial 40-46 Harvard Street.......... Route 128 Southwest MA 0 152,009 100.0% $7.65 N -- --------- ----- ------ Total Greater Boston: 45 8,160,657 91.8% $34.72 == ========= ===== ======
---------------------------------------- (1) Not included in same property analysis (2) 93,935 square feet of space added in Q2 2002 is not included in the same property analysis. (3) Amount repaid on January 17, 2003 with proceeds from the offering of the $175 million senior unsecured notes. 18 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PROPERTY LISTING AS OF DECEMBER 31, 2002
ANNUALIZED REVENUE NUMBER OF PER ENCUMBERED GREATER WASHINGTON, DC SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF (Y/N) ---------------------- ------------------------ ---------- ----------- ----------- ------------ ----------- Office 2300 N Street.................... West End Washington DC 1 289,243 98.8% $54.81 Y Capital Gallery.................. Southwest Washington DC 1 396,894 100.0% 36.77 Y 500 E Street, N. W. ............. Southwest Washington DC 1 242,769 100.0% 32.55 N Metropolitan Square (51% ownership)..................... East End Washington DC 1 585,220 97.6% 38.46 Y 1301 New York Avenue............. East End Washington DC 1 188,358 100.0% 30.34 Y Market Square North (50% ownership)..................... East End Washington DC 1 401,279 100.0% 44.53 Y Sumner Square.................... CBD Washington DC 1 207,620 100.0% 34.59 Y Decoverly Two.................... Montgomery County MD 1 77,747 100.0% 24.14 N Decoverly Three.................. Montgomery County MD 1 77,040 100.0% 25.66 N Democracy Center................. Montgomery County MD 3 680,854 94.0% 28.86 Y Montvale Center.................. Montgomery County MD 1 120,823 84.2% 23.70 Y 2600 Tower Oaks Boulevard Montgomery County MD 1 178,887 100.0% 32.01 Y (2)Orbital Sciences 1&3.......... Loudoun County 2 176,726 100.0% 23.59 N Orbital Sciences 2............... Loudoun County 1 160,502 100.0% 22.84 Y(3) The Arboretum.................... Fairfax County VA 1 95,584 0 25.71 N One Freedom Square (25% ownership)..................... Fairfax County VA 1 410,308 100.0% 33.61 Y One Reston Overlook.............. Fairfax County VA 1 312,685 100.0% 22.15 Y Two Reston Overlook.............. Fairfax County VA 1 131,594 82.2% 32.07 Y (1)One Discovery Square (50% ownership)..................... Fairfax County VA 1 181,019 100.0% 36.31 Y (1)Two Discovery Square (50% ownership)..................... Fairfax County VA 1 185,970 81.9% 32.10 Y New Dominion Technology Park..... Fairfax County VA 1 235,201 100.0% 26.80 Y Reston Corporate Center.......... Fairfax County VA 2 261,046 100.0% 31.09 Y Lockheed Martin Building......... Fairfax County VA 1 255,244 100.0% 29.63 Y NIMA Building.................... Fairfax County VA 1 263,870 100.0% 45.57 Y -- --------- ----- ------ 28 6,116,483 97.8% $33.61 -- --------- ----- ------ Office/Technical (1)Broad Run Business Park....... Loudoun County 1 127,226 54.7% 23.00 N Sugarland Business Park, Building One............................ Fairfax County VA 1 52,797 22.8% 21.99 N Sugarland Business Park, Building Two............................ Fairfax County VA 1 59,215 65.9% 20.09 N 7435 Boston Boulevard............ Fairfax County VA 1 103,557 82.3% 14.89 N 7451 Boston Boulevard............ Fairfax County VA 1 47,001 66.1% 15.39 N 7450 Boston Boulevard............ Fairfax County VA 1 62,402 100.0% 20.48 N 7374 Boston Boulevard............ Fairfax County VA 1 57,321 100.0% 13.59 N 8000 Grainger Court.............. Fairfax County VA 1 90,645 100.0% 14.82 N 7500 Boston Boulevard............ Fairfax County VA 1 79,971 100.0% 14.60 N 7501 Boston Boulevard............ Fairfax County VA 1 75,756 100.0% 23.31 N 7601 Boston Boulevard............ Fairfax County VA 1 103,750 100.0% 14.23 N 7375 Boston Boulevard............ Fairfax County VA 1 26,865 100.0% 17.52 N 8000 Corporate Court............. Fairfax County VA 1 52,539 100.0% 10.03 N (1)7300 Boston Boulevard......... Fairfax County VA 1 32,000 100.0% 20.25 -- --------- ----- ------ N 14 971,045 84.3% $16.93 -- --------- ----- ------ Total Greater Washington: 42 7,087,528 95.9% $31.60 == ========= ===== ======
---------------------------------------- (1) Not included in same property analysis (2) One of three buildings totaling 160,502 square feet is not included in the same property analysis (3) Amount repaid on January 17, 2003 with proceeds from the offering of the $175 million senior unsecured notes. 19 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PROPERTY LISTING AS OF DECEMBER 31, 2002
ANNUALIZED REVENUE NUMBER OF PER ENCUMBERED MIDTOWN MANHATTAN SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF (Y/N) ----------------- --------------------------- ---------- ----------- ----------- ------------ ----------- Office 599 Lexington Avenue.......... Park Avenue NY 1 1,019,772 95.9% $60.71 Y 280 Park Avenue............... Park Avenue NY 1 1,166,777 97.6% 54.15 Y Citigroup Center.............. Park Avenue NY 1 1,576,803 99.9% 56.97 Y (1)399 Park Avenue............ Park Avenue NY 1 1,677,433 100.0% 68.70 N (1)5 Times Square............. Times Square NY 1 1,103,290 98.8% 51.25 Y 875 Third Avenue.............. East Side NY 1 711,901 95.2% 56.73 Y -- --------- ----- ------ Total Midtown Manhattan: 6 7,255,976 98.4% $58.89 == ========= ===== ====== Princeton/East Brunswick, NJ Office 101 Carnegie Center........... Princeton NJ 1 119,652 100.0% $28.37 Y 104 Carnegie Center........... Princeton NJ 1 102,830 85.2% 31.77 N 105 Carnegie Center........... Princeton NJ 1 69,648 100.0% 28.80 N 201 Carnegie Center........... Princeton NJ -- 6,500 100.0% 24.04 N 202 Carnegie Center........... Princeton NJ 1 128,705 100.0% 29.73 Y 210 Carnegie Center........... Princeton NJ 1 161,112 100.0% 29.95 N 211 Carnegie Center........... Princeton NJ 1 47,025 100.0% 24.32 N 212 Carnegie Center........... Princeton NJ 1 146,518 100.0% 31.47 N 214 Carnegie Center........... Princeton NJ 1 148,584 94.8% 30.96 Y 206 Carnegie Center........... Princeton NJ 1 161,763 100.0% 28.10 Y 302 Carnegie Center........... Princeton NJ 1 65,135 95.5% 30.31 Y(2) 502 Carnegie Center........... Princeton NJ 1 116,374 95.3% 30.69 N 510 Carnegie Center........... Princeton NJ 1 234,160 100.0% 25.32 Y 504 Carnegie Center........... Princeton NJ 1 121,990 100.0% 26.94 Y 506 Carnegie Center........... Princeton NJ 1 136,213 56.2% 30.30 Y 508 Carnegie Center........... Princeton NJ 1 131,085 100.0% 25.29 Y One Tower Center.............. East Brunswick NJ 1 410,887 84.4% 32.62 N -- --------- ----- ------ Total Princeton/East Brunswick, NJ: 16 2,308,181 93.3% $29.31 == ========= ===== ====== Greater San Francisco Office Embarcadero Center One........ CBD San Francisco CA 1 833,727 97.8% $43.36 Y Embarcadero Center Two........ CBD San Francisco CA 1 780,441 88.3% 47.66 Y Embarcadero Center Three...... CBD San Francisco CA 1 773,632 89.1% 42.79 Y Embarcadero Center Four....... CBD San Francisco CA 1 935,821 93.1% 61.98 Y Federal Reserve............... CBD San Francisco CA 1 149,592 99.8% 49.44 Y West Tower.................... CBD San Francisco CA 1 467,781 96.1% 47.90 Y (1)611 Gateway................ South San Francisco CA 1 250,825 0.0% -- N 601 and 651 Gateway........... South San Francisco CA 2 509,720 86.1% 37.39 Y -- --------- ----- ------ 9 4,701,539 87.3% $48.02 -- --------- ----- ------ Office/Technical Hilltop Office Center......... South San Francisco CA 9 144,366 87.5% $14.97 -- --------- ----- ------ Industrial 560 Forbes Blvd............... South San Francisco CA 1 40,000 100.0% 10.54 N 430 Rozzi Place............... South San Francisco CA 1 20,000 100.0% 11.66 N -- --------- ----- ------ 2 60,000 100.0% $10.91 -- --------- ----- ------ Total Greater San Francisco: 20 4,905,905 87.4% $46.53 == ========= ===== ======
---------------------------------------- (1) Not included in same property analysis (2) Amount repaid on January 17, 2003 with proceeds from the offering of the $175 million senior unsecured notes. 20 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PROPERTY LISTING AS OF DECEMBER 31, 2002
ANNUALIZED REVENUE NUMBER OF PER ENCUMBERED BALTIMORE, MD SUB MARKET BUILDINGS SQUARE FEET OCCUPIED % OCCUPIED SF (Y/N) ------------- --------------------------- ---------- ----------- ----------- ------------ ----------- Office Candler Building.............. Baltimore MD 1 540,706 97.0% $19.18 N 100 East Pratt Street......... Baltimore MD 1 635,323 98.2% 31.69 Y -- --------- ----- ------ Total Baltimore, MD: 2 1,176,029 97.6% $25.98 == ========= ===== ====== Richmond, VA Office Riverfront Plaza.............. Richmond VA 1 899,586 91.8% $23.74 Y == ========= ===== ====== Bucks County, PA Industrial 38 Cabot Boulevard............ Bucks County PA 1 161,000 100.0% $4.79 N == ========= ===== ====== Total In-Service Properties: 133 31,954,862 93.9% == ========= =====
21 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 TOP 20 TENANTS BY SQUARE FEET LEASED
% OF TENANT SQ. FT. PORTFOLIO ------ --------- --------- 1 U.S. Government 1,408,595 4.41% 2 Citibank, N.A. 1,217,423 3.81% 3 Ernst and Young 1,064,939 3.33% 4 Lockheed Martin Corporation 676,414 2.12% 5 Shearman & Sterling 588,226 1.84% 6 Gillette Company 488,177 1.53% 7 Lehman Brothers 436,723 1.37% 8 Parametric Technology Corp. (1) 380,987 1.19% 9 Washington Group International 365,245 1.14% 10 Deutsche Bank 346,617 1.08% 11 Orbital Sciences Corporation 337,228 1.06% 12 Wachovia 319,966 1.00% 13 TRW, Inc. 318,963 1.00% 14 T. Rowe Price Associates, Inc. 304,129 0.95% 15 Hunton & Williams 301,081 0.94% 16 Digitas 279,182 0.87% 17 Accenture (1) 265,622 0.83% 18 Kirkland & Ellis 263,216 0.82% 19 Marsh USA Inc. 261,145 0.82% 20 Tellabs Operations, Inc. 259,918 0.81% Total % of Portfolio Square Feet 30.93% Total % of Portfolio Revenue 32.74%
MAJOR SIGNED DEALS FOR FUTURE DEVELOPMENT
TENANT SQ. FT. ------ -------- Finnegan Henderson Farabow Garrett & Dunner, LLP (2)........ 348,542 U.S. Government............................................. 257,400
---------------------------------------- (1) These tenants occupy space in a property in which Boston Properties has a 25% interest. (2) Includes 97,205 sf of space in a property in which Boston Properties has a 50% interest and the remainder in a property in which Boston Properties has a 25% interest. 22 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 PORTFOLIO OVERVIEW--FFO Percentage of Property Funds from Operations (1) for In-Service Properties by Location and Type of Property for the Quarter Ended December 31, 2002
OFFICE/ GEOGRAPHIC AREA OFFICE (2) TECHNICAL INDUSTRIAL HOTEL TOTAL --------------- ---------- --------- ---------- -------- -------- Greater Boston.............................................. 20.0% 0.6% 0.1% 6.5% 27.2% Greater Washington.......................................... 16.7% 1.1% -- -- 17.8% Greater San Francisco....................................... 13.6% 0.2% 0.1% -- 13.9% Midtown Manhattan........................................... 32.8% -- -- -- 32.8% Princeton/East Brunswick, NJ................................ 4.4% -- 4.4% Baltimore, MD............................................... 2.2% -- 2.2% Richmond, VA................................................ 1.6% -- 1.6% Bucks County, PA............................................ 0.1% -- 0.1% ---- --- --- --- ----- Total....................................................... 91.3% 1.9% 0.3% 6.5% 100.0% ==== === === === =====
GEOGRAPHIC AREA CBD SUBURBAN TOTAL --------------- -------- -------- -------- Greater Boston.............................................. 20.3% 6.9% 27.2% Greater Washington.......................................... 5.3% 12.5% 17.8% Greater San Francisco....................................... 12.3% 1.6% 13.9% Midtown Manhattan........................................... 32.8% -- 32.8% Princeton/East Brunswick, NJ................................ -- 4.4% 4.4% Baltimore, MD............................................... 2.2% -- 2.2% Richmond, VA................................................ 1.6% -- 1.6% Bucks County, PA............................................ -- 0.1% 0.1% ---- ---- ----- Total....................................................... 74.5% 25.5% 100.0% ==== ==== =====
------------------------ (1) For this table, Property Funds from Operations is equal to GAAP basis property NOI which includes the effect of straight-line rent and excludes any deduction for interest expense. (2) Includes Retail Center FFO (Prudential Center and Embarcadero Center). 23 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 OCCUPANCY ANALYSIS SAME PROPERTY OCCUPANCY -- BY LOCATION
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Greater Boston............................................ 90.8% 91.1% 91.1% 93.4% 91.0% 92.3% Greater Washington........................................ 99.2% 99.0% 95.8% 94.5% 97.0% 97.5% Midtown Manhattan......................................... 97.7% 99.8% -- -- 97.7% 99.8% Baltimore, MD............................................. 97.6% 99.2% -- -- 97.6% 99.2% Princeton/East Brunswick, NJ.............................. -- -- 93.3% 88.6% 93.3% 88.6% Richmond, VA.............................................. 91.8% 98.4% -- -- 91.8% 98.4% Greater San Francisco..................................... 93.0% 95.0% 87.6% 91.6% 92.1% 94.5% Bucks County, PA.......................................... -- -- 100.0% 100.0% 100.0% 100.0% ---- ---- ----- ----- ----- ----- Total Portfolio........................................... 95.0% 96.5% 93.2% 92.9% 94.3% 95.0% ==== ==== ===== ===== ===== =====
SAME PROPERTY -- BY TYPE OF PROPERTY
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Total Office Portfolio.................................... 94.9% 96.5% 93.2% 93.0% 94.3% 95.2% Total Office/Technical Portfolio.......................... 100.0% 100.0% 92.1% 91.8% 92.5% 92.1% Total Industrial Portfolio................................ -- -- 100.0% 95.6% 100.0% 95.6% ----- ----- ----- ----- ----- ----- Total Portfolio........................................... 95.0% 96.5% 93.2% 92.9% 94.3% 95.0% ===== ===== ===== ===== ===== =====
24 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE OFFICE PROPERTIES LEASE EXPIRATIONS
CURRENT ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS -------------------------------------------- ------------------ ------------------ ------------------ -------------------- 2003........................................ 1,250,690 $ 41,584,084 $33.25 $ 41,732,745 2004........................................ 2,147,159 82,814,278 38.57 83,284,879 2005........................................ 2,449,146 91,432,763 37.33 94,151,454 2006........................................ 3,202,446 131,628,890 41.10 136,114,210 2007........................................ 2,269,650 86,115,272 37.94 89,898,779 2008........................................ 1,387,399 57,428,683 41.39 57,062,763 2009........................................ 2,433,279 89,372,226 36.73 98,293,229 2010........................................ 1,306,664 59,464,648 45.51 67,466,508 2011........................................ 2,667,183 106,196,363 39.82 122,348,692 2012........................................ 1,997,499 88,602,164 44.36 97,188,030 Thereafter.................................. 5,629,350 282,751,210 50.23 341,714,099 ANNUALIZED REVENUES UNDER EXPIRING YEAR OF LEASE LEASES WITH FUTURE PERCENTAGE OF EXPIRATION STEP-UPS--P.S.F. TOTAL SQUARE FEET -------------------------------------------- -------------------- ----------------- 2003........................................ $33.37 4.39% 2004........................................ 38.79 7.54% 2005........................................ 38.44 8.60% 2006........................................ 42.50 11.25% 2007........................................ 39.61 7.97% 2008........................................ 41.13 4.87% 2009........................................ 40.40 8.55% 2010........................................ 51.63 4.59% 2011........................................ 45.87 9.37% 2012........................................ 48.65 7.02% Thereafter.................................. 60.70 19.78%
OCCUPANCY BY LOCATION
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Greater Boston............................................ 92.2% 90.9% 89.3% 92.6% 91.0% 91.7% Greater Washington........................................ 99.2% 99.3% 96.9% 96.5% 97.8% 97.9% Midtown Manhattan......................................... 98.4% 99.8% -- -- 98.4% 99.8% Baltimore, MD............................................. 97.6% 99.2% -- -- 97.6% 99.2% Princeton/East Brunswick, NJ.............................. -- -- 93.3% 88.6% 93.3% 88.6% Richmond, VA.............................................. 91.8% 98.4% -- -- 91.8% 98.4% Greater San Francisco..................................... 93.0% 95.0% 57.7% 91.3% 87.3% 94.6% Bucks County, PA.......................................... n/a n/a n/a n/a n/a n/a ----- ----- ----- ----- ----- ----- Total Portfolio......................................... 95.7%* 96.7%* 90.7% 93.0% 94.1% 95.4% ===== ===== ===== ===== ===== =====
* Includes approximately 1,500,000 of retail square footage. 25 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE OFFICE/TECHNICAL PROPERTIES LEASE EXPIRATIONS
CURRENT ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS -------------------------------------------- ------------------ ------------------ ------------------ -------------------- 2003........................................ 144,687 $2,194,368 $15.17 $2,207,461 2004........................................ 82,291 1,432,462 17.41 1,468,857 2005........................................ 147,214 2,101,781 14.28 2,202,490 2006........................................ 295,604 3,989,038 13.49 4,376,135 2007........................................ 317,912 5,388,665 16.95 5,869,019 2008........................................ -- -- -- -- 2009........................................ -- -- -- -- 2010........................................ 79,971 1,167,906 14.60 1,167,906 2011........................................ 137,321 2,358,833 17.18 2,558,833 2012........................................ 67,362 1,466,955 21.78 1,618,519 Thereafter.................................. 135,750 2,123,844 15.65 2,372,805 ANNUALIZED REVENUES UNDER EXPIRING YEAR OF LEASE LEASES WITH FUTURE PERCENTAGE OF EXPIRATION STEP-UPS--P.S.F. TOTAL SQUARE FEET -------------------------------------------- -------------------- ----------------- 2003........................................ $15.26 8.71% 2004........................................ 17.85 4.96% 2005........................................ 14.96 8.87% 2006........................................ 14.80 17.80% 2007........................................ 18.46 19.14% 2008........................................ -- -- 2009........................................ -- -- 2010........................................ 14.60 4.82% 2011........................................ 18.63 8.27% 2012........................................ 24.03 4.06% Thereafter.................................. 17.48 8.17%
OCCUPANCY BY LOCATION
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Greater Boston............................................ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Greater Washington........................................ -- -- 84.3% 88.7% 84.3% 88.7% Midtown Manhattan......................................... n/a n/a n/a n/a n/a 89.0% Baltimore, MD............................................. n/a n/a n/a n/a n/a n/a Princeton/East Brunswick, NJ.............................. n/a n/a n/a n/a n/a n/a Richmond, VA.............................................. n/a n/a n/a n/a n/a n/a Greater San Francisco..................................... -- -- 87.5% 89.0% 87.5% Bucks County, PA.......................................... n/a n/a n/a n/a n/a n/a ----- ----- ----- ----- ----- ----- Total Portfolio......................................... 100.0% 100.0% 89.3% 91.8% 89.7% 92.1% ===== ===== ===== ===== ===== =====
26 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE INDUSTRIAL PROPERTIES LEASE EXPIRATIONS
CURRENT ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS -------------------------------------------- ------------------ ------------------ ------------------ -------------------- 2003........................................ 152,009 $1,163,535 $ 7.65 $1,244,211 2004........................................ 201,000 1,192,524 5.93 1,202,124 2005........................................ -- -- -- -- 2006........................................ -- -- -- -- 2007........................................ 20,000 233,256 11.66 258,183 2008........................................ -- -- -- -- 2009........................................ -- -- -- -- 2010........................................ -- -- -- -- 2011........................................ -- -- -- -- 2012........................................ -- -- -- -- Thereafter.................................. -- -- -- -- ANNUALIZED REVENUES UNDER EXPIRING YEAR OF LEASE LEASES WITH FUTURE PERCENTAGE OF EXPIRATION STEP-UPS--P.S.F. TOTAL SQUARE FEET -------------------------------------------- -------------------- ----------------- 2003........................................ $ 8.19 40.75% 2004........................................ 5.98 53.89% 2005........................................ -- -- 2006........................................ -- -- 2007........................................ 12.91 5.36% 2008........................................ -- -- 2009........................................ -- -- 2010........................................ -- -- 2011........................................ -- -- 2012........................................ -- -- Thereafter.................................. -- --
OCCUPANCY BY LOCATION
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Greater Boston............................................ -- -- 100.0% 89.8% 100.0% 89.8% Greater Washington........................................ n/a n/a n/a n/a n/a n/a Midtown Manhattan......................................... n/a n/a n/a n/a n/a n/a Baltimore, MD............................................. n/a n/a n/a n/a n/a n/a Princeton/East Brunswick, NJ.............................. n/a n/a n/a n/a n/a n/a Richmond, VA.............................................. n/a n/a n/a n/a n/a n/a Greater San Francisco..................................... -- -- 100.0% 78.6% 100.0% 78.6% Bucks County, PA.......................................... -- -- 100.0% 100.0% 100.0% 100.0% ----- ----- ----- ----- ----- ----- Total Portfolio......................................... -- -- 100.0% 87.3% 100.0% 87.3% ===== ===== ===== ===== ===== =====
27 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE RETAIL PROPERTIES ]LEASE EXPIRATIONS
CURRENT ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS -------------------------------------------- ------------------ ------------------ ------------------ -------------------- 2003........................................ 97,088 $ 7,902,768 $81.40(1) $ 7,910,522 2004........................................ 128,654 7,354,337 57.16 7,410,145 2005........................................ 94,366 4,367,574 46.28 4,551,725 2006........................................ 64,382 3,249,972 50.48 3,286,112 2007........................................ 63,857 2,977,620 46.63 3,185,655 2008........................................ 49,973 2,420,242 48.43 2,585,405 2009........................................ 35,048 1,575,948 44.97 1,681,298 2010........................................ 89,369 3,611,613 40.41 4,022,404 2011........................................ 41,689 2,606,290 62.52 3,012,288 2012........................................ 121,878 6,666,356 54.70 7,515,302 Thereafter.................................. 499,780 20,290,577 40.60 28,515,040 ANNUALIZED REVENUES UNDER EXPIRING YEAR OF LEASE LEASES WITH FUTURE PERCENTAGE OF EXPIRATION STEP-UPS--P.S.F. TOTAL SQUARE FEET -------------------------------------------- -------------------- ----------------- 2003........................................ $81.48 6.66% 2004........................................ 57.60 8.83% 2005........................................ 48.23 6.48% 2006........................................ 51.04 4.42% 2007........................................ 49.89 4.38% 2008........................................ 51.74 3.43% 2009........................................ 47.97 2.41% 2010........................................ 45.01 6.13% 2011........................................ 72.26 2.86% 2012........................................ 61.66 8.37% Thereafter.................................. 57.06 34.31%
(1) Includes $2,318,616 of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 28 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 GRAND TOTAL OF ALL IN-SERVICE PROPERTIES LEASE EXPIRATIONS
CURRENT ANNUALIZED ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES EXPIRING LEASES EXPIRATION EXPIRING LEASES EXPIRING LEASES P.S.F. WITH FUTURE STEP-UPS -------------------------------------------- ------------------ ------------------ ------------------ -------------------- 2003........................................ 1,644,474 $ 52,844,755 $32.13 $ 53,094,939 2004........................................ 2,559,104 92,793,601 36.26 93,366,005 2005........................................ 2,690,726 97,902,119 36.39 100,905,670 2006........................................ 3,562,432 138,867,900 38.98 143,776,456 2007........................................ 2,671,419 94,714,813 35.45 99,211,635 2008........................................ 1,437,372 59,848,925 41.64 59,648,168 2009........................................ 2,468,327 90,948,175 36.85 99,974,527 2010........................................ 1,476,004 64,244,167 43.53 72,656,818 2011........................................ 2,846,193 111,161,486 39.06 127,919,813 2012........................................ 2,186,739 96,735,475 44.24 106,321,851 Thereafter.................................. 6,264,880 305,165,632 48.71 372,601,943 ANNUALIZED REVENUES UNDER EXPIRING YEAR OF LEASE LEASES WITH FUTURE PERCENTAGE OF EXPIRATION STEP-UPS--P.S.F. TOTAL SQUARE FEET -------------------------------------------- -------------------- ----------------- 2003........................................ $32.29 5.15% 2004........................................ 36.48 8.01% 2005........................................ 37.50 8.42% 2006........................................ 40.36 11.15% 2007........................................ 37.14 8.36% 2008........................................ 41.50 4.50% 2009........................................ 40.50 7.72% 2010........................................ 49.23 4.62% 2011........................................ 44.94 8.91% 2012........................................ 48.62 6.84% Thereafter.................................. 59.47 19.61%
OCCUPANCY BY LOCATION
CBD SUBURBAN TOTAL --------------------- --------------------- --------------------- LOCATION 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 31-DEC-02 31-DEC-01 -------- --------- --------- --------- --------- --------- --------- Greater Boston............................................ 92.3% 91.1% 91.1% 93.4% 91.8% 92.3% Greater Washington........................................ 99.2% 99.3% 94.3% 94.5% 95.9% 97.8% Midtown Manhattan......................................... 98.4% 99.8% -- -- 98.4% 99.8% Baltimore, MD............................................. 97.6% 99.2% -- -- 97.6% 99.2% Princeton/East Brunswick, NJ.............................. -- -- 93.3% 88.6% 93.3% 88.6% Richmond, VA.............................................. 91.8% 98.4% -- -- 91.8% 98.4% Greater San Francisco..................................... 93.0% 95.0% 64.8% 87.1% 87.4% 93.5% Bucks County, PA.......................................... -- -- 100.0% 100.0% 100.0% 100.0% ----- ----- ----- ----- ----- ----- Total Portfolio......................................... 95.7% 96.7% 90.8% 92.5% 93.9% 95.0% ===== ===== ===== ===== ===== =====
29 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES LEASE EXPIRATIONS--GREATER BOSTON
OFFICE/TECHNICAL ------------------ OFFICE -------------------------------------------------------------- ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 272,245 $ 7,922,160 $ 7,982,167 -- 2004.......................................... 646,994 24,267,597 24,610,085 -- 2005.......................................... 859,312 33,919,465 34,509,418 -- 2006.......................................... 572,608 20,896,210 21,296,025 253,704 2007.......................................... 386,122 16,282,558 17,012,796 144,140 2008.......................................... 125,579 4,043,043 4,160,919 -- 2009.......................................... 944,472 33,860,325 37,315,155 -- 2010.......................................... 170,346 6,781,620 7,702,342 -- 2011.......................................... 762,735 26,625,094 31,762,240 80,000 2012.......................................... 606,807 21,031,156 24,146,350 67,362 Thereafter.................................... 679,652 26,348,739 33,804,339 -- OFFICE/TECHNICAL --------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER REVENUES UNDER EXPIRING LEASES YEAR OF LEASE EXPIRING LEASES WITH FUTURE STEP- EXPIRATION P.S.F. UPS--P.S.F. ---------------------------------------------- ------------------ ------------------ 2003.......................................... $ -- $ -- 2004.......................................... -- -- 2005.......................................... -- -- 2006.......................................... 3,328,641 3,663,288 2007.......................................... 1,784,982 2,208,262 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... -- -- 2011.......................................... 1,579,750 1,779,750 2012.......................................... 1,466,955 1,618,519 Thereafter.................................... -- --
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 152,009 $1,163,535 $1,244,211 55,534 2004.......................................... -- -- -- 87,456 2005.......................................... -- -- -- 58,554 2006.......................................... -- -- -- 15,154 2007.......................................... -- -- -- 432 2008.......................................... -- -- -- 5,466 2009.......................................... -- -- -- -- 2010.......................................... -- -- -- 37,110 2011.......................................... -- -- -- 11,599 2012.......................................... -- -- -- 55,076 Thereafter.................................... -- -- -- 337,648 RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $5,842,381 $ 5,878,681 2004.......................................... 5,429,030 5,454,530 2005.......................................... 2,465,639 2,581,631 2006.......................................... 1,057,710 1,064,390 2007.......................................... 55,923 63,300 2008.......................................... 427,825 427,825 2009.......................................... -- -- 2010.......................................... 1,418,251 1,492,471 2011.......................................... 619,611 668,111 2012.......................................... 1,917,359 2,005,503 Thereafter.................................... 8,342,871 12,762,671
(1) Includes $2,318,616 of annual revenue from the Prudential Center retail kiosks for which there is zero square footage assigned. 30 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER BOSTON PROPERTIES QUARTERLY LEASE EXPIRATIONS--GREATER BOSTON
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... 70,176 $ 2,829,846 $ 2,829,846 $ -- Q2 2003....................................... 60,385 1,899,622 1,956,491 -- Q3 2003....................................... 103,329 2,101,683 2,101,683 -- Q4 2003....................................... 38,355 1,091,009 1,094,147 -- ----------- ------------ ----------- ----------- Total 2003.................................... 272,245 7,922,160 7,982,167 -- =========== ============ =========== =========== Q1 2004....................................... 57,562 1,929,723 1,936,617 -- Q2 2004....................................... 102,197 3,602,344 3,658,491 -- Q3 2004....................................... 344,874 13,930,379 14,182,581 -- Q4 2004....................................... 142,361 4,805,151 4,832,396 -- ----------- ------------ ----------- ----------- Total 2004.................................... 646,994 24,267,596 24,610,085 -- =========== ============ =========== =========== OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... -- -- Q4 2003....................................... -- -- ----------- ----------- Total 2003.................................... -- -- =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... -- -- Q3 2004....................................... -- -- Q4 2004....................................... -- -- ----------- ----------- Total 2004.................................... -- -- =========== ===========
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... 23,904 $ 210,852 $ 291,528 20,747 Q2 2003....................................... -- -- -- 4,000 Q3 2003....................................... 128,105 952,684 952,684 1,075 Q4 2003....................................... -- -- -- 29,712 ----------- ------------ ----------- ----------- Total 2003.................................... 152,009 $ 1,163,535 $ 1,244,211 55,534 =========== ============ =========== =========== Q1 2004....................................... -- -- -- 59,704 Q2 2004....................................... -- -- -- 9,669 Q3 2004....................................... -- -- -- 3,187 Q4 2004....................................... -- -- -- 14,896 ----------- ------------ ----------- ----------- Total 2004.................................... -- -- -- 87,456 =========== ============ =========== =========== RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ 908,811 $ 1,029,411 Q2 2003....................................... 1,079,826 796,026 Q3 2003....................................... 163,000 139,000 Q4 2003....................................... 3,690,744 3,914,244 ----------- ----------- Total 2003.................................... $ 5,842,381 $ 5,878,681 =========== =========== Q1 2004....................................... 3,822,537 3,822,537 Q2 2004....................................... 851,927 851,927 Q3 2004....................................... 292,533 292,533 Q4 2004....................................... 462,033 487,533 ----------- ----------- Total 2004.................................... $ 5,429,030 $ 5,454,530 =========== ===========
31 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER WASHINGTON PROPERTIES LEASE EXPIRATIONS--GREATER WASHINGTON
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 121,576 $ 3,671,295 $ 3,690,565 100,912 2004.......................................... 223,328 8,129,248 8,352,697 67,791 2005.......................................... 490,525 17,267,678 18,406,164 101,345 2006.......................................... 425,184 12,162,224 13,013,019 33,400 2007.......................................... 654,110 20,935,582 21,602,057 163,422 2008.......................................... 424,056 17,008,484 13,655,805 -- 2009.......................................... 694,507 23,052,385 24,542,810 -- 2010.......................................... 518,240 20,036,460 23,720,277 79,971 2011.......................................... 1,062,026 31,858,178 38,081,807 57,321 2012.......................................... 309,951 10,472,201 13,052,257 -- Thereafter.................................... 1,013,679 32,241,696 38,449,678 135,750 OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ 1,463,566 $ 1,476,660 2004.......................................... 1,196,458 1,226,493 2005.......................................... 1,446,746 1,518,966 2006.......................................... 522,025 563,495 2007.......................................... 3,472,883 3,500,437 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... 1,167,906 1,167,906 2011.......................................... 779,083 779,083 2012.......................................... -- -- Thereafter.................................... 2,123,844 2,372,805
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... -- $ -- $ -- 810 2004.......................................... -- -- -- 5,209 2005.......................................... -- -- -- 9,570 2006.......................................... -- -- -- 6,645 2007.......................................... -- -- -- 23,248 2008.......................................... -- -- -- 16,338 2009.......................................... -- -- -- -- 2010.......................................... -- -- -- 10,277 2011.......................................... -- -- -- 11,221 2012.......................................... -- -- -- 7,519 Thereafter.................................... -- -- -- 23,685 RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ 27,770 $ 27,770 2004.......................................... 209,969 212,995 2005.......................................... 390,327 407,080 2006.......................................... 277,533 277,898 2007.......................................... 676,112 699,382 2008.......................................... 583,620 670,555 2009.......................................... -- -- 2010.......................................... 370,157 430,861 2011.......................................... 468,529 528,386 2012.......................................... 149,731 185,933 Thereafter.................................... 789,615 1,109,914
32 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER WASHINGTON PROPERTIES QUARTERLY LEASE EXPIRATIONS--GREATER WASHINGTON
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... -- $ -- $ -- 25,384 Q2 2003....................................... 76,266 2,220,628 2,221,903 36,847 Q3 2003....................................... 23,624 850,289 859,500 31,681 Q4 2003....................................... 21,686 600,378 609,161 7,000 ----------- ------------ ----------- ----------- Total 2003.................................... 121,576 3,671,295 3,690,565 100,912 =========== ============ =========== =========== Q1 2004....................................... 50,565 1,625,490 1,671,762 14,338 Q2 2004....................................... 46,308 1,448,442 1,480,457 43,101 Q3 2004....................................... 94,622 3,833,272 3,954,805 -- Q4 2004....................................... 31,833 1,222,044 1,245,673 10,352 ----------- ------------ ----------- ----------- Total 2004.................................... 223,328 8,129,248 8,352,697 67,791 =========== ============ =========== =========== OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ 385,950 $ 385,950 Q2 2003....................................... 544,335 557,429 Q3 2003....................................... 435,281 435,281 Q4 2003....................................... 98,000.04 98,000.04 ----------- ----------- Total 2003.................................... 1,463,566 1,476,660 =========== =========== Q1 2004....................................... 231,585 237,562 Q2 2004....................................... 742,853 760,424 Q3 2004....................................... -- -- Q4 2004....................................... 222,020 228,507 ----------- ----------- Total 2004.................................... 1,196,458 1,226,493 =========== ===========
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... -- $ -- $ -- -- Q2 2003....................................... -- -- -- -- Q3 2003....................................... -- -- -- -- Q4 2003....................................... -- -- -- 810 ----------- ------------ ----------- ----------- Total 2003.................................... -- -- -- 810 =========== ============ =========== =========== Q1 2004....................................... -- -- -- 2,183 Q2 2004....................................... -- -- -- 3,026 Q3 2004....................................... -- -- -- -- Q4 2004....................................... -- -- -- -- ----------- ------------ ----------- ----------- Total 2004.................................... -- -- -- 5,209 =========== ============ =========== =========== RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... -- -- Q4 2003....................................... 27,770 27,770 ----------- ----------- Total 2003.................................... 27,770 27,770 =========== =========== Q1 2004....................................... 72,212 72,212 Q2 2004....................................... 137,756 140,782 Q3 2004....................................... -- -- Q4 2004....................................... -- -- ----------- ----------- Total 2004.................................... 209,969 212,995 =========== ===========
33 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES LEASE EXPIRATIONS--GREATER SAN FRANCISCO
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 471,805 $ 18,082,335 $18,134,589 43,775 2004.......................................... 574,955 26,274,912 26,081,285 14,500 2005.......................................... 355,723 16,143,321 16,612,141 45,869 2006.......................................... 910,348 44,825,519 46,596,967 8,500 2007.......................................... 427,809 20,237,351 21,176,850 10,350 2008.......................................... 167,410 6,748,689 7,064,266 -- 2009.......................................... 254,262 11,012,778 11,694,736 -- 2010.......................................... 180,943 10,771,710 12,645,530 -- 2011.......................................... 192,689 17,971,253 18,463,847 -- 2012.......................................... 127,682 5,184,464 5,699,105 -- Thereafter.................................... 144,115 6,219,404 6,604,054 -- OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ 730,802 $ 730,802 2004.......................................... 236,004 242,364 2005.......................................... 655,035 683,525 2006.......................................... 138,372 149,352 2007.......................................... 130,800 160,320 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... -- -- 2011.......................................... -- -- 2012.......................................... -- -- Thereafter.................................... -- --
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... -- $ -- $ -- 38,429 2004.......................................... 40,000 421,476 431,076 29,285 2005.......................................... -- -- -- 23,012 2006.......................................... -- -- -- 18,043 2007.......................................... 20,000 233,256 258,183 20,891 2008.......................................... -- -- -- 24,937 2009.......................................... -- -- -- 35,048 2010.......................................... -- -- -- 30,749 2011.......................................... -- -- -- 3,474 2012.......................................... -- -- -- 35,018 Thereafter.................................... -- -- -- 7,690 RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ 1,708,645 $ 1,680,098 2004.......................................... 1,405,724 1,423,453 2005.......................................... 1,136,754 1,157,770 2006.......................................... 901,480 908,608 2007.......................................... 1,345,300 1,427,788 2008.......................................... 1,256,211 1,317,897 2009.......................................... 1,575,948 1,681,298 2010.......................................... 1,285,287 1,464,401 2011.......................................... 196,298 229,226 2012.......................................... 2,090,812 2,405,158 Thereafter.................................... 523,973 577,532
34 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE GREATER SAN FRANCISCO PROPERTIES QUARTERLY LEASE EXPIRATIONS--GREATER SAN FRANCISCO
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... 81,123 $ 3,212,565 $ 3,229,053 5,255 Q2 2003....................................... 65,402 2,840,569 2,840,569 19,001 Q3 2003....................................... 18,428 575,311 575,311 10,547 Q4 2003....................................... 306,852 11,453,890 11,489,656 8,972 ----------- ------------ ----------- ----------- Total 2003.................................... 471,805 18,082,335 18,134,589 43,775 =========== ============ =========== =========== Q1 2004....................................... 28,229 1,618,998 1,636,807 -- Q2 2004....................................... 157,863 6,709,593 6,712,965 5,000 Q3 2004....................................... 230,631 10,718,107 10,725,554 5,500 Q4 2004....................................... 158,232 7,228,215 7,005,959 4,000 ----------- ------------ ----------- ----------- Total 2004.................................... 574,955 26,274,912 26,081,285 14,500 =========== ============ =========== =========== OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ 97,683 $ 97,683 Q2 2003....................................... 300,673 300,673 Q3 2003....................................... 171,048 171,048 Q4 2003....................................... 161,398 161,398 ----------- ----------- Total 2003.................................... 730,802 730,802 =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... 79,548 81,648 Q3 2004....................................... 98,628 101,268 Q4 2004....................................... 57,828 59,448 ----------- ----------- Total 2004.................................... 236,004 242,364 =========== ===========
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... -- $ -- $ -- 5,807 Q2 2003....................................... -- -- -- 7,412 Q3 2003....................................... -- -- -- -- Q4 2003....................................... -- -- -- 25,210 ----------- ------------ ----------- ----------- Total 2003.................................... -- -- -- 38,429 =========== ============ =========== =========== Q1 2004....................................... -- -- -- 16,598 Q2 2004....................................... -- -- -- -- Q3 2004....................................... -- -- -- 4,982 Q4 2004....................................... 40,000 421,476 431,076 7,705 ----------- ------------ ----------- ----------- Total 2004.................................... 40,000 421,476 431,076 29,285 =========== ============ =========== =========== RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ 141,189 $ 105,700 Q2 2003....................................... 536,354 536,354 Q3 2003....................................... -- -- Q4 2003....................................... 1,031,102 1,038,044 ----------- ----------- Total 2003.................................... 1,708,645 1,680,098 =========== =========== Q1 2004....................................... 696,786 714,515 Q2 2004....................................... -- -- Q3 2004....................................... 285,245 285,245 Q4 2004....................................... 423,693 423,693 ----------- ----------- Total 2004.................................... 1,405,724 1,423,453 =========== ===========
35 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE MIDTOWN MANHATTAN PROPERTIES LEASE EXPIRATIONS--MIDTOWN MANHATTAN
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 121,520 $ 5,515,989 $ 5,515,989 -- 2004.......................................... 164,723 9,325,127 9,340,151 -- 2005.......................................... 113,291 7,151,927 7,173,577 -- 2006.......................................... 481,316 30,138,998 30,572,610 -- 2007.......................................... 201,557 12,045,052 12,147,947 -- 2008.......................................... 462,395 25,726,448 27,577,804 -- 2009.......................................... 250,804 13,998,636 16,022,270 -- 2010.......................................... 262,620 16,574,296 17,565,611 -- 2011.......................................... 390,174 22,088,621 25,528,549 -- 2012.......................................... 922,493 50,959,155 53,071,040 -- Thereafter.................................... 3,549,815 210,677,445 254,861,719 -- OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ -- $ -- 2004.......................................... -- -- 2005.......................................... -- -- 2006.......................................... -- -- 2007.......................................... -- -- 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... -- -- 2011.......................................... -- -- 2012.......................................... -- -- Thereafter.................................... -- --
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... -- $ -- $ -- 2,315 2004.......................................... -- -- -- 3,800 2005.......................................... -- -- -- 3,230 2006.......................................... -- -- -- 17,700 2007.......................................... -- -- -- 6,876 2008.......................................... -- -- -- 3,232 2009.......................................... -- -- -- -- 2010.......................................... -- -- -- 10,608 2011.......................................... -- -- -- 15,395 2012.......................................... -- -- -- 22,865 Thereafter.................................... -- -- -- 128,242 RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ 323,973 $ 323,973 2004.......................................... 257,239 266,573 2005.......................................... 374,855 405,244 2006.......................................... 784,617 806,582 2007.......................................... 644,793 709,055 2008.......................................... 152,587 169,129 2009.......................................... -- -- 2010.......................................... 523,164 615,535 2011.......................................... 1,321,852 1,586,565 2012.......................................... 2,496,354 2,904,825 Thereafter.................................... 10,577,504 13,997,218
36 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE MIDTOWN MANHATTAN PROPERTIES QUARTERLY LEASE EXPIRATIONS--MIDTOWN MANHATTAN
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... $ -- $ -- $ -- $ -- Q2 2003....................................... 37,005 2,090,493 2,090,493 -- Q3 2003....................................... 59,016 2,071,770 2,071,770 -- Q4 2003....................................... 25,499 1,353,726 1,353,726 -- ----------- ------------ ----------- ----------- Total 2003.................................... 121,520 5,515,989 5,515,989 -- =========== ============ =========== =========== Q1 2004....................................... -- -- -- -- Q2 2004....................................... 53,473 4,109,433 4,109,433 -- Q3 2004....................................... -- -- -- -- Q4 2004....................................... 111,250 5,215,694 5,230,718 -- ----------- ------------ ----------- ----------- Total 2004.................................... 164,723 9,325,127 9,340,151 -- =========== ============ =========== =========== OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... -- -- Q4 2003....................................... -- -- ----------- ----------- Total 2003.................................... -- -- =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... -- -- Q3 2004....................................... -- -- Q4 2004....................................... -- -- ----------- ----------- Total 2004.................................... -- -- =========== ===========
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... -- $ -- $ -- -- Q2 2003....................................... -- -- -- -- Q3 2003....................................... -- -- -- 1,515 Q4 2003....................................... -- -- -- 800 ----------- ------------ ----------- ----------- Total 2003.................................... -- -- -- 2,315 =========== ============ =========== =========== Q1 2004....................................... -- -- -- -- Q2 2004....................................... -- -- -- 350 Q3 2004....................................... -- -- -- -- Q4 2004....................................... -- -- -- 3,450 ----------- ------------ ----------- ----------- Total 2004.................................... -- -- -- 3,800 =========== ============ =========== =========== RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... 64,220 64,220 Q4 2003....................................... 259,753 259,753 ----------- ----------- Total 2003.................................... 323,973 323,973 =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... 47,345 50,139 Q3 2004....................................... -- -- Q4 2004....................................... 209,894 216,434 ----------- ----------- Total 2004.................................... 257,239 266,573 =========== ===========
37 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES LEASE EXPIRATIONS--PRINCETON/EAST BRUNSWICK
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... 97,193 $ 2,788,097 $ 2,788,097 -- 2004.......................................... 410,880 12,085,326 12,108,249 -- 2005.......................................... 237,630 7,261,045 7,350,624 -- 2006.......................................... 87,691 2,845,967 2,998,578 -- 2007.......................................... 510,959 13,820,256 15,047,700 -- 2008.......................................... -- -- -- -- 2009.......................................... 161,514 4,886,156 5,645,940 -- 2010.......................................... 145,675 4,690,766 5,105,120 -- 2011.......................................... 254,941 7,534,086 8,375,570 -- 2012.......................................... -- -- -- -- Thereafter.................................... 237,429 7,160,772 7,849,057 -- OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ -- $ -- 2004.......................................... -- -- 2005.......................................... -- -- 2006.......................................... -- -- 2007.......................................... -- -- 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... -- -- 2011.......................................... -- -- 2012.......................................... -- -- Thereafter.................................... -- --
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ 2003.......................................... -- $ -- $ -- -- 2004.......................................... -- -- -- 2,904 2005.......................................... -- -- -- -- 2006.......................................... -- -- -- -- 2007.......................................... -- -- -- -- 2008.......................................... -- -- -- -- 2009.......................................... -- -- -- -- 2010.......................................... -- -- -- -- 2011.......................................... -- -- -- -- 2012.......................................... -- -- -- -- Thereafter.................................... -- -- -- -- RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- 2003.......................................... $ -- $ -- 2004.......................................... 48,000 48,000 2005.......................................... -- -- 2006.......................................... -- -- 2007.......................................... -- -- 2008.......................................... -- -- 2009.......................................... -- -- 2010.......................................... -- -- 2011.......................................... -- -- 2012.......................................... -- -- Thereafter.................................... -- --
38 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE PRINCETON/EAST BRUNSWICK PROPERTIES QUARTERLY LEASE EXPIRATIONS--PRINCETON/EAST BRUNSWICK
OFFICE OFFICE/TECHNICAL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... 11,952 $ 478,634 $ 478,634 -- Q2 2003....................................... 2,242 70,927 70,927 -- Q3 2003....................................... 11,302 309,629 309,629 -- Q4 2003....................................... 71,697 1,928,908 1,928,908 -- ----------- ------------ ----------- ----------- Total 2003.................................... 97,193 2,788,097 2,788,097 -- =========== ============ =========== =========== Q1 2004....................................... 15,570 452,936 452,936 -- Q2 2004....................................... 54,636 1,507,852 1,507,852 -- Q3 2004....................................... 121,054 3,614,735 3,614,735 -- Q4 2004....................................... 219,620 6,509,804 6,532,727 -- ----------- ------------ ----------- ----------- Total 2004.................................... 410,880 12,085,326 12,108,249 -- =========== ============ =========== =========== OFFICE/TECHNICAL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... -- -- Q4 2003....................................... -- -- ----------- ----------- Total 2003.................................... -- -- =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... -- -- Q3 2004....................................... -- -- Q4 2004....................................... -- -- ----------- ----------- Total 2004.................................... -- -- =========== ===========
INDUSTRIAL RETAIL -------------------------------------------------------------- ------------------ ANNUALIZED RENTABLE SQUARE CURRENT ANNUALIZED REVENUES UNDER RENTABLE SQUARE YEAR OF LEASE FOOTAGE SUBJECT TO REVENUES UNDER EXPIRING LEASES FOOTAGE SUBJECT TO EXPIRATION EXPIRING LEASES EXPIRING LEASES WITH FUTURE STEP-UPS EXPIRING LEASES ---------------------------------------------- ------------------ ------------------ -------------------- ------------------ Q1 2003....................................... -- $ -- $ -- -- Q2 2003....................................... -- -- -- -- Q3 2003....................................... -- -- -- -- Q4 2003....................................... -- -- -- -- ----------- ------------ ----------- ----------- Total 2003.................................... -- -- -- -- =========== ============ =========== =========== Q1 2004....................................... -- -- -- -- Q2 2004....................................... -- -- -- -- Q3 2004....................................... -- -- -- -- Q4 2004....................................... -- -- -- 2,904 ----------- ------------ ----------- ----------- Total 2004.................................... -- -- -- 2,904 =========== ============ =========== =========== RETAIL ----------------------------------------- ANNUALIZED CURRENT ANNUALIZED REVENUES UNDER YEAR OF LEASE REVENUES UNDER EXPIRING LEASES EXPIRATION EXPIRING LEASES WITH FUTURE STEP-UPS ---------------------------------------------- ------------------ -------------------- Q1 2003....................................... $ -- $ -- Q2 2003....................................... -- -- Q3 2003....................................... -- -- Q4 2003....................................... -- -- ----------- ----------- Total 2003.................................... -- -- =========== =========== Q1 2004....................................... -- -- Q2 2004....................................... -- -- Q3 2004....................................... -- -- Q4 2004....................................... 48,000 48,000 ----------- ----------- Total 2004.................................... 48,000 48,000 =========== ===========
39 Exhibit 99.1 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE OTHER PROPERTIES LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA)
OFFICE OFFICE/TECHNICAL -------------------------------------------------------- ---------------- ANNUALIZED CURRENT REVENUES RENTABLE RENTABLE SQUARE ANNUALIZED UNDER SQUARE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE YEAR OF LEASE TO EXPIRING EXPIRING WITH FUTURE SUBJECT TO EXPIRATION LEASES LEASES STEP-UPS EXPIRING LEASES ----------------------------------------------- ----------------- ----------------- ---------------- ---------------- 2003........................................... 166,351 $3,604,208 $3,621,338 -- 2004........................................... 126,279 2,732,068 2,792,412 -- 2005........................................... 392,665 9,689,327 10,099,531 -- 2006........................................... 725,299 20,759,971 21,637,011 -- 2007........................................... 89,093 2,794,473 2,911,429 -- 2008........................................... 207,959 3,902,018 4,603,968 -- 2009........................................... 127,720 2,561,948 3,072,317 -- 2010........................................... 28,840 609,797 727,629 -- 2011........................................... 4,618 119,131 136,679 -- 2012........................................... 30,566 955,188 1,219,278 -- Thereafter..................................... 4,660 103,154 145,251 -- OFFICE/TECHNICAL ------------------------------------- ANNUALIZED REVENUES CURRENT UNDER ANNUALIZED EXPIRING LEASES YEAR OF LEASE REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES STEP-UPS ----------------------------------------------- ------------------ ---------------- 2003........................................... $ -- $ -- 2004........................................... -- -- 2005........................................... -- -- 2006........................................... -- -- 2007........................................... -- -- 2008........................................... -- -- 2009........................................... -- -- 2010........................................... -- -- 2011........................................... -- -- 2012........................................... -- -- Thereafter..................................... -- --
INDUSTRIAL RETAIL -------------------------------------------------------- ---------------- ANNUALIZED CURRENT REVENUES RENTABLE RENTABLE SQUARE ANNUALIZED UNDER SQUARE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE YEAR OF LEASE TO EXPIRING EXPIRING WITH FUTURE SUBJECT TO EXPIRATION LEASES LEASES STEP-UPS EXPIRING LEASES ----------------------------------------------- ----------------- ----------------- ---------------- ---------------- 2003........................................... -- $ -- $ -- -- 2004........................................... 161,000 771,048 771,048 -- 2005........................................... -- -- -- -- 2006........................................... -- -- -- 6,840 2007........................................... -- -- -- 12,410 2008........................................... -- -- -- -- 2009........................................... -- -- -- -- 2010........................................... -- -- -- 625 2011........................................... -- -- -- -- 2012........................................... -- -- -- 1,400 Thereafter..................................... -- -- -- 2,515 RETAIL ------------------------------------- ANNUALIZED REVENUES CURRENT UNDER ANNUALIZED EXPIRING LEASES YEAR OF LEASE REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES STEP-UPS ----------------------------------------------- ------------------ ---------------- 2003........................................... $ -- $ -- 2004........................................... 4,376 4,595 2005........................................... -- -- 2006........................................... 228,633 228,633 2007........................................... 255,491 286,130 2008........................................... -- -- 2009........................................... -- -- 2010........................................... 14,754 19,135 2011........................................... -- -- 2012........................................... 12,100 13,884 Thereafter..................................... 56,613 67,704
40 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 IN-SERVICE OTHER PROPERTIES QUARTERLY LEASE EXPIRATIONS OTHER PROPERTIES (RICHMOND, VA, BALTIMORE, MD, BUCKS COUNTY, PA)
OFFICE OFFICE/TECHNICAL -------------------------------------------------------- ---------------- ANNUALIZED CURRENT REVENUES RENTABLE RENTABLE SQUARE ANNUALIZED UNDER SQUARE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE YEAR OF LEASE TO EXPIRING EXPIRING WITH FUTURE SUBJECT TO EXPIRATION LEASES LEASES STEP-UPS EXPIRING LEASES ----------------------------------------------- ----------------- ----------------- ---------------- ---------------- Q1 2003........................................ 36,777 $ 570,759 $ 570,759 -- Q2 2003........................................ 28,654 675,424 678,180 -- Q3 2003........................................ 22,240 466,368 475,442 -- Q4 2003........................................ 78,680 1,891,657 1,896,957 -- ------- ---------- ---------- ------- Total 2003..................................... 166,351 3,604,208 3,621,338 -- ======= ========== ========== ======= Q1 2004........................................ -- -- -- -- Q2 2004........................................ 12,935 372,623 382,913 -- Q3 2004........................................ 84,197 1,774,732 1,816,633 -- Q4 2004........................................ 29,147 584,713 592,866 -- ------- ---------- ---------- ------- Total 2004..................................... 126,279 2,732,068 2,792,412 -- ======= ========== ========== ======= OFFICE/TECHNICAL ------------------------------------- ANNUALIZED REVENUES CURRENT UNDER ANNUALIZED EXPIRING LEASES YEAR OF LEASE REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES STEP-UPS ----------------------------------------------- ------------------ ---------------- Q1 2003........................................ $ -- $ -- Q2 2003........................................ -- -- Q3 2003........................................ -- -- Q4 2003........................................ -- -- -------- -------- Total 2003..................................... -- -- ======== ======== Q1 2004........................................ -- -- Q2 2004........................................ -- -- Q3 2004........................................ -- -- Q4 2004........................................ -- -- -------- -------- Total 2004..................................... -- -- ======== ========
INDUSTRIAL RETAIL -------------------------------------------------------- ---------------- ANNUALIZED CURRENT REVENUES RENTABLE RENTABLE SQUARE ANNUALIZED UNDER SQUARE FOOTAGE SUBJECT REVENUES UNDER EXPIRING LEASES FOOTAGE YEAR OF LEASE TO EXPIRING EXPIRING WITH FUTURE SUBJECT TO EXPIRATION LEASES LEASES STEP-UPS EXPIRING LEASES ----------------------------------------------- ----------------- ----------------- ---------------- ---------------- Q1 2003........................................ -- $ -- $ -- -- Q2 2003........................................ -- -- -- -- Q3 2003........................................ -- -- -- -- Q4 2003........................................ -- -- -- -- ------- ---------- ---------- ------- Total 2003..................................... -- -- -- -- ======= ========== ========== ======= Q1 2004........................................ -- -- -- -- Q2 2004........................................ 161,000 771,048 771,048 -- Q3 2004........................................ -- -- -- -- Q4 2004........................................ -- -- -- -- ------- ---------- ---------- ------- Total 2004..................................... 161,000 771,048 771,048 -- ======= ========== ========== ======= RETAIL ------------------------------------- ANNUALIZED REVENUES CURRENT UNDER ANNUALIZED EXPIRING LEASES YEAR OF LEASE REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES STEP-UPS ----------------------------------------------- ------------------ ---------------- Q1 2003........................................ $ -- $ -- Q2 2003........................................ -- -- Q3 2003........................................ -- -- Q4 2003........................................ -- -- -------- -------- Total 2003..................................... -- -- ======== ======== Q1 2004........................................ -- -- Q2 2004........................................ -- -- Q3 2004........................................ 4,376 4,595 Q4 2004........................................ -- -- -------- -------- Total 2004..................................... 4,376 4,595 ======== ========
41 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 CBD PROPERTIES LEASE EXPIRATIONS
GREATER BOSTON --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ 95,909 $ 7,500,094 2004........................................................ 370,813 18,435,042 2005........................................................ 600,418 26,621,706 2006........................................................ 168,144 8,290,279 2007........................................................ 153,050 7,901,808 2008........................................................ 48,441 1,942,903 2009........................................................ 661,277 23,458,347 2010........................................................ 150,555 6,295,349 2011........................................................ 434,991 20,675,404 2012........................................................ 311,152 12,716,483 Thereafter.................................................. 823,076 27,925,502 GREATER BOSTON -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ $ 7,593,263 2004........................................................ 18,709,101 2005........................................................ 27,215,015 2006........................................................ 8,370,737 2007........................................................ 8,131,713 2008........................................................ 2,041,423 2009........................................................ 26,233,054 2010........................................................ 7,041,334 2011........................................................ 24,886,207 2012........................................................ 14,402,774 Thereafter.................................................. 38,349,465 GREATER WASHINGTON ----------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ ----------------- --------------- --------------------- 2003........................................................ 28,560 $ 1,031,220 $ 1,049,214 2004........................................................ 146,226 5,960,464 6,121,736 2005........................................................ 244,420 9,657,433 10,282,667 2006........................................................ 46,501 1,756,204 1,843,219 2007........................................................ 323,690 11,025,868 11,363,094 2008........................................................ 31,917 1,163,449 1,339,836 2009........................................................ 433,461 14,935,714 16,426,140 2010........................................................ 390,991 15,283,955 17,863,223 2011........................................................ 190,472 7,178,379 8,594,548 2012........................................................ 77,318 2,849,470 2,868,603 Thereafter.................................................. 387,544 17,122,179 19,654,379
NEW YORK --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ 123,835 $ 5,839,962 2004........................................................ 168,523 9,582,366 2005........................................................ 116,521 7,526,782 2006........................................................ 499,016 30,923,615 2007........................................................ 208,433 12,689,846 2008........................................................ 465,627 25,879,035 2009........................................................ 250,804 13,998,636 2010........................................................ 273,228 17,097,459 2011........................................................ 405,569 23,410,474 2012........................................................ 945,358 53,455,509 Thereafter.................................................. 3,678,057 221,254,950 NEW YORK -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ $ 5,839,962 2004........................................................ 9,606,724 2005........................................................ 7,578,821 2006........................................................ 31,379,193 2007........................................................ 12,857,003 2008........................................................ 27,746,933 2009........................................................ 16,022,270 2010........................................................ 18,181,146 2011........................................................ 27,115,114 2012........................................................ 55,975,865 Thereafter.................................................. 268,858,937 SAN FRANCISCO -------------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ --------------- --------------- -------------------------- 2003........................................................ 244,475 $10,771,621 $10,789,838 2004........................................................ 562,363 26,023,160 25,817,934 2005........................................................ 324,131 14,796,662 14,828,701 2006........................................................ 894,253 43,568,718 45,035,971 2007........................................................ 436,833 21,123,483 22,130,396 2008........................................................ 179,577 7,712,202 8,076,297 2009........................................................ 284,054 12,412,124 13,164,743 2010........................................................ 203,968 11,888,997 13,878,211 2011........................................................ 196,163 18,167,551 18,693,073 2012........................................................ 162,700 7,275,276 8,104,263 Thereafter.................................................. 151,805 6,743,377 7,181,587
NEW JERSEY --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ -- $ -- 2004........................................................ -- -- 2005........................................................ -- -- 2006........................................................ -- -- 2007........................................................ -- -- 2008........................................................ -- -- 2009........................................................ -- -- 2010........................................................ -- -- 2011........................................................ -- -- 2012........................................................ -- -- Thereafter.................................................. -- -- NEW JERSEY -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ $ -- 2004........................................................ -- 2005........................................................ -- 2006........................................................ -- 2007........................................................ -- 2008........................................................ -- 2009........................................................ -- 2010........................................................ -- 2011........................................................ -- 2012........................................................ -- Thereafter.................................................. -- OTHER -------------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ --------------- --------------- -------------------------- 2003........................................................ 166,351 $ 3,612,929 $ 3,630,059 2004........................................................ 126,279 2,736,444 2,797,006 2005........................................................ 392,665 9,689,327 10,099,531 2006........................................................ 732,139 20,988,604 21,865,644 2007........................................................ 101,503 3,049,964 3,197,560 2008........................................................ 209,420 3,922,472 4,630,266 2009........................................................ 127,720 2,561,948 3,072,317 2010........................................................ 29,465 624,551 746,765 2011........................................................ 4,618 119,131 136,679 2012........................................................ 31,966 967,287 1,233,162 Thereafter.................................................. 7,175 159,767 212,955
42 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 SUBURBAN PROPERTIES LEASE EXPIRATIONS
GREATER BOSTON --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ 383,879 $ 7,427,981 2004........................................................ 363,637 11,261,584 2005........................................................ 317,448 9,763,398 2006........................................................ 673,322 16,992,282 2007........................................................ 377,644 10,221,655 2008........................................................ 82,604 2,527,965 2009........................................................ 283,195 10,401,977 2010........................................................ 56,901 1,904,522 2011........................................................ 419,343 8,149,050 2012........................................................ 418,093 11,698,987 Thereafter.................................................. 194,224 6,766,109 GREATER BOSTON -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ $ 7,511,795 2004........................................................ 11,355,514 2005........................................................ 9,876,035 2006........................................................ 17,652,965 2007........................................................ 11,152,644 2008........................................................ 2,547,320 2009........................................................ 11,082,101 2010........................................................ 2,153,479 2011........................................................ 9,323,894 2012........................................................ 13,367,598 Thereafter.................................................. 8,217,545 GREATER WASHINGTON --------------------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ --------------- ------------------------ ------------------------ 2003........................................................ 194,738 $ 4,131,411 $ 4,145,780 2004........................................................ 150,102 3,575,210 3,670,448 2005........................................................ 357,020 9,447,318 10,049,543 2006........................................................ 418,728 11,205,578 12,011,193 2007........................................................ 517,090 14,058,708 14,438,782 2008........................................................ 408,477 16,428,655 12,986,524 2009........................................................ 261,046 8,116,670 8,116,670 2010........................................................ 217,497 6,290,567 7,455,821 2011........................................................ 940,096 25,927,411 30,794,728 2012........................................................ 240,152 7,772,463 10,369,586 Thereafter.................................................. 785,570 18,032,977 22,278,017
NEW YORK --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ -- -- 2004........................................................ -- -- 2005........................................................ -- -- 2006........................................................ -- -- 2007........................................................ -- -- 2008........................................................ -- -- 2009........................................................ -- -- 2010........................................................ -- -- 2011........................................................ -- -- 2012........................................................ -- -- Thereafter.................................................. -- -- NEW YORK -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ -- 2004........................................................ -- 2005........................................................ -- 2006........................................................ -- 2007........................................................ -- 2008........................................................ -- 2009........................................................ -- 2010........................................................ -- 2011........................................................ -- 2012........................................................ -- Thereafter.................................................. -- SAN FRANCISCO --------------------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ ----------------- ----------------------- ----------------------- 2003........................................................ 309,534 $ 9,750,160 $ 9,755,651 2004........................................................ 96,377 2,314,956 2,360,244 2005........................................................ 100,473 3,138,448 3,624,734 2006........................................................ 42,638 2,296,652 2,618,956 2007........................................................ 42,217 823,224 892,744 2008........................................................ 12,770 292,698 305,866 2009........................................................ 5,256 176,602 211,291 2010........................................................ 7,724 168,000 231,720 2011........................................................ -- -- -- 2012........................................................ -- -- -- Thereafter.................................................. -- -- --
NEW JERSEY --------------------------------------------------------- CURRENT RENTABLE SQUARE ANNUALIZED FOOTAGE SUBJECT REVENUES UNDER YEAR OF LEASE TO EXPIRING EXPIRING EXPIRATION LEASES LEASES ------------------------------------------------------------ ---------------------------- -------------------------- 2003........................................................ 97,193 $ 2,788,097 2004........................................................ 413,784 12,133,326 2005........................................................ 237,630 7,261,045 2006........................................................ 87,691 2,845,967 2007........................................................ 510,959 13,820,256 2008........................................................ -- -- 2009........................................................ 161,514 4,886,156 2010........................................................ 145,675 4,690,766 2011........................................................ 254,941 7,534,086 2012........................................................ -- -- Thereafter.................................................. 237,429 7,160,772 NEW JERSEY -------------------------- ANNUALIZED REVENUES UNDER EXPIRING LEASES YEAR OF LEASE WITH FUTURE EXPIRATION STEP-UPS ------------------------------------------------------------ -------------------------- 2003........................................................ $ 2,788,097 2004........................................................ 12,156,249 2005........................................................ 7,350,624 2006........................................................ 2,998,578 2007........................................................ 15,047,700 2008........................................................ -- 2009........................................................ 5,645,940 2010........................................................ 5,105,120 2011........................................................ 8,375,570 2012........................................................ -- Thereafter.................................................. 7,849,057 OTHER -------------------------------------------------------------------- ANNUALIZED RENTABLE REVENUES SQUARE CURRENT UNDER FOOTAGE ANNUALIZED EXPIRING LEASES YEAR OF LEASE SUBJECT TO REVENUES UNDER WITH FUTURE EXPIRATION EXPIRING LEASES EXPIRING LEASES STEP-UPS ------------------------------------------------------------ ------------------ ------------------ -------------------------- 2003........................................................ -- $ -- $ -- 2004........................................................ 161,000 771,048 771,048 2005........................................................ -- -- -- 2006........................................................ -- -- -- 2007........................................................ -- -- -- 2008........................................................ -- -- -- 2009........................................................ -- -- -- 2010........................................................ -- -- -- 2011........................................................ -- -- -- 2012........................................................ -- -- -- Thereafter.................................................. -- -- --
43 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 HOTEL PERFORMANCE LONG WHARF MARRIOTT--BOSTON
FOURTH QUARTER FOURTH QUARTER PERCENT YTD 2002 2001 CHANGE 2002 --------------------------- --------------------------- -------------- -------- Occupancy.......................... 78.2% 78.8% -0.8% 82.9% Average Daily Rate................. $217.19 $197.81 9.8% $212.57 REVPAR............................. $169.84 $155.82 9.0% $176.13 NOI (in thousands)................. $ 3,512 $ 2,856 23.0% $11,283 YTD PERCENT 2001 CHANGE -------- -------------- Occupancy.......................... 81.0%(1) 2.3% Average Daily Rate................. $227.42 -6.5% REVPAR............................. $184.21 -4.4% NOI (in thousands)................. $12,301 -8.3%
CAMBRIDGE CENTER MARRIOTT
FOURTH QUARTER FOURTH QUARTER PERCENT YTD 2002 2001 CHANGE 2002 --------------------------- --------------------------- -------------- -------- Occupancy.......................... 73.8% 65.6% 12.5% 76.6% Average Daily Rate................. $182.04 $182.81 -0.4% $173.52 REVPAR............................. $134.34 $119.93 12.0% $132.94 NOI (in thousands)................. $ 2,441 $ 1,767 38.1% $ 7,863 YTD PERCENT 2001 CHANGE -------- -------------- Occupancy.......................... 76.7% -0.1% Average Daily Rate................. $191.24 -9.3% REVPAR............................. $146.68 -9.4% NOI (in thousands)................. $9,188 -14.4%
RESIDENCE INN BY MARRIOT
FOURTH QUARTER FOURTH QUARTER PERCENT YTD 2002 2001 CHANGE 2002 --------------------------- --------------------------- -------------- -------- Occupancy.......................... 81.1% 82.9% -2.2% 84.9% Average Daily Rate................. $140.57 $136.39 3.1% $138.77 REVPAR............................. $114.00 $113.07 0.8% $117.87 NOI (in thousands)................. $ 1,374 $ 1,264 8.7% $ 4,238 YTD PERCENT 2001 CHANGE -------- -------------- Occupancy.......................... 87.1% -2.5% Average Daily Rate................. $154.77 -10.3% REVPAR............................. $134.80 -12.6% NOI (in thousands)................. $5,278 -19.7%
TOTAL HOTEL PERFORMANCE
FOURTH QUARTER FOURTH QUARTER PERCENT YTD 2002 2001 CHANGE 2002 --------------------------- --------------------------- -------------- -------- Occupancy.......................... 77.0% 74.3% 3.6% 80.7% Average Daily Rate................. $186.75 $178.80 4.4% $181.13 REVPAR............................. $143.62 $132.18 8.7% $146.25 NOI (in thousands)................. $ 7,326 $ 5,887 24.4% $23,384 YTD PERCENT 2001 CHANGE -------- -------------- Occupancy.......................... 80.5% 0.2% Average Daily Rate................. $197.39 -8.2% REVPAR............................. $158.50 -7.7% NOI (in thousands)................. $26,768 -12.6%
(1) Room renovation project underway during 2001. 44 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 SAME PROPERTY PERFORMANCE OFFICE, OFFICE/TECHNICAL, INDUSTRIAL AND HOTEL PROPERTIES
OFFICE OFFICE/TECHNICAL INDUSTRIAL HOTEL TOTAL ----------- ---------------------------- ------------------ ---------- ---------- Number of Properties.................. 93 26 4 3 126 Square feet........................... 25,563,322 1,501,391 373,009 937,874 28,375,596 Percent of in-service properties...... 85.4% 90.4% 100.0% 100.0% 86.3% Occupancy @ 12/31/01.................. 95.2% 92.1% 95.6% -- 95.0% Occupancy @ 12/31/02.................. 94.3% 92.5% 100.0% -- 94.3% Percent change from 4th quarter 2002 over 4th quarter 2001 Revenue(1).......................... 2.4% -1.1% -1.8% 13.3% 2.6% Expense............................. 4.9% -6.7% -7.4% -14.5% 4.3% Net Operating Income (1)............ 1.2% 0.5% 0.2% 21.8% 1.9% Net Operating Income--without hotels 1.2% (1)............................... Revenue--cash basis (1)............... 3.7% -1.9% -1.1% 13.5% 3.9% Net Operating Income--cash basis (1)............................... 3.1% -0.5% 1.1% 22.0% 3.6% Net Operating Income--without hotels--cash basis (1).............. 3.0%
SAME PROPERTY LEASE ANALYSIS--QUARTER ENDED DECEMBER 31, 2002
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL ----------- ---------------------------- ------------------ ---------- Vacant space available @10/01/02 (sf).............. 1,081,190 76,055 -- 1,157,245 Square footage of leases expiring or terminated 10/01/02-12/31/02............................... 825,132 127,078 23,904 976,114 ---------- ------- ------ --------- Total space for lease (sf)......................... 1,906,322 203,133 23,904 2,133,359 ========== ======= ====== ========= New tenants (sf)................................... 374,366 3,477 -- 377,843 Renewals (sf)...................................... 186,797 86,322 23,904 297,023 ---------- ------- ------ --------- Total space leased (sf)............................ 561,163 89,799 23,904 674,866 ========== ======= ====== ========= Space available @ 12/31/02 (sf).................... 1,345,159 113,334 -- 1,458,493 ========== ======= ====== ========= Net (increase)/decrease in available space (sf).... (263,969) (37,279) -- (301,248) Average lease term (months)........................ 91 115 12 91 2nd generation TI/Comm PSF......................... $ 14.27 $ 0.07 $ -- $ 11.87 Increase (decrease) in 2nd generation net rents (2).............................................. -5.3% 2.0% -- -4.8%
(1) Does not include termination and early surrender income. (2) Represents increase in net rents on a "cash to cash" basis. (Actual net rent at time of expiration vs. initial net rent of new lease.) 45 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 PROPERTY PERFORMANCE ALL IN-SERVICE PROPERTIES--QUARTER ENDED DECEMBER 31, 2002
OFFICE OFFICE/TECHNICAL INDUSTRIAL TOTAL ----------- ---------------------------- ------------------ ---------- Vacant space available @ 10/01/02 (sf)............. 1,537,518 76,055 -- 1,613,573 New development sf completed....................... 91,264 -- -- 91,264 Square footage of leases expiring or terminated 10/01/02-12/31/02................................ 829,992 127,078 23,904 980,974 ---------- ------- ------ --------- Total space for lease (sf)......................... 2,458,774 203,133 23,904 2,685,811 ========== ======= ====== ========= New tenants (sf)................................... 434,048 3,477 -- 437,525 Renewals (sf)...................................... 186,797 86,322 23,904 297,023 ---------- ------- ------ --------- Total space leased (sf)............................ 620,845 89,799 23,904 734,548(2) ========== ======= ====== ========= Space available @ 12/31/02 (sf).................... 1,837,929 113,334 -- 1,951,263 ========== ======= ====== ========= Net (increase)/decrease in available space (sf).... (300,411) (37,279) -- (337,690) Average lease term (months)........................ 92 115 12 92 2nd generation TI/Comm PSF......................... $ 14.43 $ 0.07 $ -- $ 12.02 Increase (decrease) in 2nd generation net rents (1).............................................. -4.5% 2.0% -- -4.0%
(1) Represents increase in net rents on a "cash to cash" basis (actual net rent at time of expiration vs. initial net rent of new lease). (2) Details of 1st and 2nd Generation Space:
1ST 2ND TOTAL GENERATION GENERATION LEASED -------------- -------------- --------- Boston...................................................... 36,384 111,126 147,510 Washington.................................................. 3,945 183,156 187,101 New York.................................................... 14,513 192,676 207,189 San Francisco............................................... -- 174,781 174,781 Princeton................................................... -- 17,967 17,967 ------ ------- ------- 54,842 679,706 734,548 ====== ======= =======
46 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 HISTORICALLY GENERATED CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS HISTORICAL CAPITAL EXPENDITURES (IN THOUSANDS)
Q4 Q3 Q2 Q1 2002 2002 2002 2002 2001 2000 -------- -------- -------- -------- ---------- ---------- Recurring capital expenditures.............................. $ 5,909 $ 4,266 $ 3,553 $ 2,946 $ 11,770 $ 11,201 Planned non-recurring capital expenditures associated with acquisition properties (1)................................ 7,856 5,320 9,777 8,955 45,052 25,782 Hotel improvements, equipment upgrades and replacements..... 188 394 852 1,784 9,230 5,697 -------- -------- -------- -------- ---------- ---------- $ 13,953 $ 9,980 $ 14,182 $ 13,685 $ 66,052 $ 42,680 ======== ======== ======== ======== ========== ==========
2ND GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS (2) (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
Q4 Q3 Q2 Q1 2002 2002 2002 2002 2001 2000 -------- -------- -------- -------- ---------- ---------- Office Square feet............................................... 566,003 433,722 638,750 483,934 2,394,291 2,913,599 -------- -------- -------- -------- ---------- ---------- Tenant improvement and lease commissions p.s.f............ $ 14.43 $ 18.01 $ 26.18 $ 20.95 $ 17.47 $ 13.82 -------- -------- -------- -------- ---------- ---------- Office/Technical Square feet............................................... 89,799 250,261 6,214 1,047 348,178 694,536 -------- -------- -------- -------- ---------- ---------- Tenant improvement and lease commissions p.s.f............ $ 0.07 $ 1.90 $ 1.68 $ 1.02 $ 3.13 $ 2.95 -------- -------- -------- -------- ---------- ---------- Industrial Square feet............................................... 23,904 -- 221,000 -- -- 209,125 -------- -------- -------- -------- ---------- ---------- Tenant improvement and lease commissions p.s.f............ $ -- $ -- $ 0.68 $ -- $ -- $ 1.38 -------- -------- -------- -------- ---------- ---------- Average tenant improvement and lease commission p.s.f..... $ 12.02 $ 12.11 $ 19.50 $ 20.91 $ 15.65 $ 11.16 ======== ======== ======== ======== ========== ==========
(1) Includes budgeted costs associated with the 18.4 million square feet of previously disclosed acquisitions. (2) Based on leases executed during the period. 47 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 VALUE CREATION PIPELINE--ACQUISITIONS/DISPOSITIONS AS OF DECEMBER 31, 2002 ACQUISITIONS
ANTICIPATED DATE SQUARE INITIAL FUTURE PROPERTY ACQUIRED FEET INVESTMENT INVESTMENT -------- --------------- ------------ ------------------- ------------------- 399 Park Avenue.................... Sep-02 1,677,433 $1,064,000,000 $4,000,000 --------- -------------- ---------- TOTAL VALUE CREATION PIPELINE--ACQUISITIONS......... 1,677,433 $1,064,000,000 $4,000,000 ========= ============== ========== TOTAL CURRENT PROPERTY INVESTMENT OCCUPANCY -------- ------------------- ------------------ 399 Park Avenue.................... $1,068,000,000 100% -------------- ---- TOTAL VALUE CREATION PIPELINE--ACQUISITIONS......... $1,068,000,000 100% ============== ====
DISPOSTIONS
DATE GROSS PROPERTY DISPOSED SQUARE FEET SALES PRICE BOOK GAIN -------- --------------- -------------------- ------------------- ----------------- Fullerton Square............................... Mar-02 179,453 $ 22,525,000 $ 7,145,500 7600 Boston Boulevard.......................... Mar-02 69,832 8,627,000 5,597,132(1) 7700 Boston Boulevard.......................... Mar-02 82,224 16,558,000 6,024,563(1) 7702 Boston Boulevard.......................... Mar-02 43,171 8,916,000 2,758,255(1) 681 Gateway--Land.............................. Jul-02 N/A 8,000,000 3,278,659 Herndon Lumber Site--Land...................... Jul-02 N/A 5,200,000 1,152,784 Belvidere garage spaces........................ Sep-02 N/A 1,305,000 103,030 Belvidere garage spaces........................ Oct-02 N/A 1,035,000 81,715 One and Two Independence Square................ Nov-02 917,459 345,000,000 227,791,468 2391 West Winton Avenue........................ Dec-02 220,213 10,800,000 9,288,323 --------- ------------ ------------ TOTAL DISPOSITIONS............................. 1,512,352 $427,966,000 $263,221,429 ========= ============ ============
(1) Gains recognized for accounting purposes during Q3 2002. 48 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 VALUE CREATION PIPELINE--CONSTRUCTION IN PROGRESS AS OF DECEMBER 31, 2002
DEVELOPMENT INITIAL STABILIZATION # OF PROPERTIES OCCUPANCY DATE LOCATION BUILDINGS ----------- --------------- ------------------- ---------------- -------------- Shaws Supermarket.......................... Q2 2003 Q2 2003 Boston, MA 1 Waltham Weston Corporate Center............ Q1 2002 Q4 2003 Waltham, MA 1 New Dominion Tech, Building Two............ Q2 2004 Q2 2004 Herndon, VA 1 Two Freedom Square (50% ownership)......... Q3 2002 Q3 2004 Reston, VA 1 Times Square Tower......................... Q1 2004 Q1 2005 New York, NY 1 901 New York Avenue (25% ownership)........ Q3 2004 Q3 2005 Washington, D.C. 1 --- TOTAL DEVELOPMENT PROPERTIES................. 6 === ANTICIPATED TOTAL DEVELOPMENT SQUARE INVESTMENT TOTAL CONSTRUCTION PROPERTIES FEET TO DATE INVESTMENT(1) LOAN ----------- ---------- ---------------- ------------------- -------------------- Shaws Supermarket.......................... 57,235 21,723,021 24,034,000 24,000,000 Waltham Weston Corporate Center............ 304,050 67,711,099 85,000,000 45,000,000 New Dominion Tech, Building Two............ 257,400 9,434,333 67,589,000 65,000,000 Two Freedom Square (50% ownership)......... 422,930 39,181,217 49,336,000(2) 45,000,000(2) Times Square Tower......................... 1,218,511 366,247,753 653,500,000 493,500,000 901 New York Avenue (25% ownership)........ 538,463 14,004,503 44,777,250 30,000,000 --------- ------------ ------------ ------------ TOTAL DEVELOPMENT PROPERTIES................. 2,798,589 $518,301,926 $924,236,250 $702,500,000 ========= ============ ============ ============ AMOUNT DRAWN AT CURRENT DEVELOPMENT DECEMBER 31, FUTURE EQUITY PERCENTAGE PROPERTIES 2002 REQUIREMENT LEASED ----------- ------------------ -------------------- ----------------- Shaws Supermarket.......................... 20,716,660 -- 100% Waltham Weston Corporate Center............ 44,839,890 17,128,791 42% New Dominion Tech, Building Two............ 7,558,424 713,091 100% Two Freedom Square (50% ownership)......... 32,853,493 -- 65% Times Square Tower......................... 222,196,210 15,948,457 0% 901 New York Avenue (25% ownership)........ 2,642,575 3,415,322 60% ------------ ----------- --- TOTAL DEVELOPMENT PROPERTIES................. $330,807,252 $37,205,661 37% ============ =========== ===
DEVELOPMENTS PLACED-IN-SERVICE DURING 2002
INITIAL IN-SERVICE STABILIZATION # OF DATE DATE LOCATION BUILDINGS --------------- ------------------- ---------------- -------------- CLASS A OFFICE BUILDING One and Two Discovery Square (50% ownership)....... Q1/Q2 2002 Q1 2002/Q1 2003 Reston, VA 2 ITT Educational Services........................... Q1 2002 Q1 2002 Springfield, VA 1 5 Times Square..................................... Q1 2002 Q1 2002 New York, NY 1 111 Huntington Avenue--Prudential Center........... Q3 2001 Q2 2002 Boston, MA 1 111 Huntington Avenue--retail...................... Q3 2001 Q1 2003 Boston, MA -- Broad Run Business Park- Building E................ Q2 2002 Q2 2003 Dulles, VA 1 611 Gateway Boulevard.............................. Q3 2003 Q4 2005 S. San Francisco, CA 1 --- TOTAL DEVELOPMENTS PLACED IN SERVICE................. 7 === SQUARE INVESTMENT TOTAL CONSTRUCTION FEET TO DATE INVESTMENT LOAN ---------- ---------------- ---------------- -------------------- CLASS A OFFICE BUILDING One and Two Discovery Square (50% ownership)....... 366,989 $ 36,437,265 $ 41,204,000 $ 37,500,000 ITT Educational Services........................... 32,000 5,480,445 5,740,000 -- 5 Times Square..................................... 1,103,290 501,644,212 536,115,000 420,000,000 111 Huntington Avenue--Prudential Center........... 854,129 305,014,774 290,000,000 203,000,000 111 Huntington Avenue--retail...................... 92,935 -- n/a -- Broad Run Business Park- Building E................ 127,226 14,395,599 19,946,000 -- 611 Gateway Boulevard.............................. 250,825 60,989,068 81,221,000 -- --------- ------------ ------------ ------------ TOTAL DEVELOPMENTS PLACED IN SERVICE................. 2,827,394 $923,961,363 $974,226,000 $660,500,000 ========= ============ ============ ============ DRAWN AT DECEMBER 31, FUTURE EQUITY PERCENTAGE 2002 REQUIREMENT LEASED ------------------ -------------------- ----------------- CLASS A OFFICE BUILDING One and Two Discovery Square (50% ownership)....... $ 30,949,380 -- 91% ITT Educational Services........................... -- 259,555 100% 5 Times Square..................................... 372,904,665 -- 100% 111 Huntington Avenue--Prudential Center........... 203,000,000 -- 98% 111 Huntington Avenue--retail...................... -- -- 100% Broad Run Business Park- Building E................ -- 5,550,401 55% 611 Gateway Boulevard.............................. -- 20,231,932 0% ------------ ----------- --- TOTAL DEVELOPMENTS PLACED IN SERVICE................. $606,854,045 $26,041,888 87% ============ =========== ===
(1) Includes net revenues during lease-up period and cash component of hedge contracts. (2) Represents 50% of the total anticipated project-level investment and construction loan. 49 BOSTON PROPERTIES, INC. FOURTH QUARTER 2002 VALUE CREATION PIPELINE--OWNED LAND PARCELS AS OF DECEMBER 31, 2002
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET -------- ------------- -------------- --------------------- Rockville, MD............................................... 4 92.3 986,000 Dulles, VA.................................................. 2 76.6 937,000 Gaithersburg, MD............................................ 4 27.0 850,000 San Jose, CA................................................ 5 3.7 841,000 Reston, VA.................................................. 3 26.7 861,000 Boston, MA.................................................. 2 0.5 776,000 Marlborough, MA............................................. 1 50.0 400,000 Weston, MA.................................................. 1 74.0 350,000 Waltham, MA................................................. 1 4.3 202,000 Andover, MA................................................. 1 10.0 110,000 Washington, D.C............................................. 1 0.5 170,000 -- ----- --------- 25 365.6 6,483,000 == ===== =========
VALUE CREATION PIPELINE--LAND PURCHASE OPTIONS AS OF DECEMBER 31, 2002
NO. OF DEVELOPABLE LOCATION PARCELS ACREAGE SQUARE FEET -------- ------------- -------------- --------------------- Princeton, NJ (1)........................................... 14 149.9 1,900,000 Framingham, MA (2).......................................... 1 21.5 300,000 Cambridge, MA (3)........................................... 1 2.6 165,000 -- ----- --------- 16 174.0 2,365,000 == ===== =========
(1) $20.00/FAR plus an earnout calculation. (2) Subject to ground lease. (3) Prior to January 23, 2003 the cost will be $27.72/SF of land area. Land area is approximately 108,000 SF. 50