UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of
report (Date of earliest event reported): April 27, 2015
BOSTON
PROPERTIES, INC.
(Exact Name of Registrant As Specified in Charter)
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| Delaware |
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1-13087 |
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04-2473675 |
| (State or Other Jurisdiction
of Incorporation) |
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(Commission
File Number) |
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(IRS Employer
Identification No.) |
800 Boylston Street, Suite 1900, Boston, Massachusetts 02199
(Address of Principal Executive Offices) (Zip Code)
(617) 236-3300
(Registrant’s telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2. below):
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¨ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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¨ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. |
Results of Operations and Financial Condition. |
The information in this Item 2.02 - “Results
of Operations and Financial Condition” is being furnished. Such information, including Exhibits 99.1 and 99.2 hereto, shall not be deemed “filed” for any purpose, including for the purposes of Section 18 of the Securities
Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information in this Item 2.02, including Exhibits 99.1 and 99.2, shall not be deemed incorporated by reference into
any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.
On
April 27, 2015, Boston Properties, Inc. (the “Company”) issued a press release announcing its financial results for the first quarter of 2015. That press release referred to certain supplemental information that is available on the
Company’s website. The text of the supplemental information and the press release are attached hereto as Exhibits 99.1 and 99.2, respectively, and are incorporated by reference herein.
| Item 9.01. |
Financial Statements and Exhibits. |
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| Exhibit
No. |
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Description |
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| *99.1 |
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Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 2015. |
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| *99.2 |
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Press release dated April 27, 2015. |
1
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
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BOSTON PROPERTIES, INC. |
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| Date: April 27, 2015 |
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By: |
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/s/ Michael E. LaBelle |
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Michael E. LaBelle |
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Senior Vice President, Chief Financial Officer |
EXHIBIT INDEX
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| Exhibit
No. |
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Description |
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| *99.1 |
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Boston Properties, Inc. Supplemental Operating and Financial Data for the quarter ended March 31, 2015. |
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| *99.2 |
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Press release dated April 27, 2015. |
Exhibit 99.1
Supplemental Operating and Financial Data
for the Quarter Ended March 31, 2015
Boston Properties, Inc.
First Quarter 2015
Table of Contents
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Page |
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| Company Profile |
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3 |
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| Investor Information |
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4 |
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| Research Coverage |
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5 |
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| Financial Highlights |
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6 |
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| Consolidated Balance Sheets |
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7 |
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| Consolidated Income Statements |
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8 |
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| Funds From Operations |
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9 |
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| Reconciliation to Diluted Funds From Operations |
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10 |
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| Funds Available for Distribution and Interest Coverage Ratios |
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11 |
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| Capital Structure |
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12 |
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| Debt Analysis |
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13-15 |
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| Unconsolidated Joint Ventures |
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16-17 |
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| Consolidated Joint Ventures |
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18 |
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| Portfolio Overview-Square Footage |
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19 |
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| In-Service Property Listing |
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20-22 |
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| Top 20 Tenants and Tenant Diversification |
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23 |
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| Office Properties-Lease Expiration Roll Out |
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24 |
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| Office/Technical Properties-Lease Expiration Roll Out |
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25 |
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| Retail Properties - Lease Expiration Roll Out |
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26 |
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| Grand Total - Office, Office/Technical and Retail Properties |
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27 |
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| Boston Lease Expiration Roll Out |
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28-29 |
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| New York Lease Expiration Roll Out |
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30-31 |
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| San Francisco Lease Expiration Roll Out |
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32-33 |
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| Washington, DC Lease Expiration Roll Out |
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34-35 |
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| CBD/Suburban Lease Expiration Roll Out |
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36-37 |
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| Hotel and Residential Performance |
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38 |
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| Same Property Occupancy Analysis |
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39 |
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| Same Property Performance |
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40 |
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| Reconciliation to Same Property Performance and Net Income |
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41-42 |
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| Leasing Activity |
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43 |
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| Capital Expenditures, Tenant Improvements and Leasing Commissions |
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44 |
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| Acquisitions/Dispositions |
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45 |
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| Value Creation Pipeline - Construction in Progress |
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46 |
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| Value Creation Pipeline - Land Parcels and Purchase Options |
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47 |
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| Definitions |
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48-50 |
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This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can
identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,”
“projects,” “should,” “will” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown
risks, uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new
leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of
investing in new markets, the ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effectiveness of our interest rate hedging programs, the effects of local, national and international
economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period
comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty to update or
revise any forward-looking statement, whether as a result of new information, future events or otherwise.
(Cover photo: Atlantic Wharf Office, Boston,
MA)
2
Boston Properties, Inc.
First Quarter 2015
COMPANY PROFILE
The Company
Boston Properties, Inc. (the “Company”), a self-administered and self-managed real estate investment trust (REIT), is one of the largest owners,
managers, and developers of first-class office properties in the United States, with a significant presence in four markets: Boston, New York, San Francisco, and Washington, DC. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H.
Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997. The Company acquires, develops and manages its properties through full-service regional offices. Its property portfolio is comprised
primarily of first-class office space, one hotel, three residential properties and five retail properties. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a
superior track record in developing premium Central Business District (CBD) office buildings, successful mixed use complexes, suburban office centers and build-to-suit projects for the U.S. government and a diverse array of creditworthy tenants.
Management
Boston
Properties’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of 30 individuals averages 31 years of real estate experience and eighteen years with Boston Properties. We believe
that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and
relationships of key personnel, including Owen D. Thomas, Chief Executive Officer; Douglas T. Linde, President; Raymond A. Ritchey, Executive Vice President, National Director of Acquisitions and Development; and Michael E. LaBelle, Senior Vice
President, Chief Financial Officer. Our senior management team’s national reputation helps us attract business and investment opportunities. In addition, our other senior officers that serve as Regional Managers have strong reputations that
assist in identifying and closing on new opportunities, having opportunities brought to us, and in negotiating with tenants and build-to-suit prospects. Additionally, Boston Properties’ Board of Directors consists of eleven distinguished
members, the majority of whom are Independent Directors.
Strategy
Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total
return in all points of the economic cycle. To achieve this objective, the Company maintains consistent strategies that include the following:
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concentrating on carefully targeted markets characterized by high barriers to the creation of new supply and strong real estate fundamentals where tenants have demonstrated a preference for high-quality office buildings
and other facilities; |
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selectively acquiring assets which increase its penetration in these targeted markets; |
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taking on complex, technically-challenging development projects that leverage the skills of its management team to successfully develop, acquire, and reposition properties; |
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exploring joint-venture opportunities with partners who seek to benefit from the Company’s depth of development and management expertise; |
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pursuing on a selective basis the sale of properties or interests therein to either take advantage of the demand for the Company’s premier properties or pare from the portfolio properties that we believe have
slower future growth potential; and |
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continuing to enhance the Company’s balanced capital structure through its access to a variety of capital sources. |
Snapshot
(as of
March 31, 2015)
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| Corporate Headquarters |
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Boston, Massachusetts |
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| Markets |
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Boston, New York, San Francisco and Washington, DC |
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| Fiscal Year-End |
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December 31 |
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| Total Properties (includes unconsolidated joint ventures) |
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168 |
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| Total Square Feet (includes unconsolidated joint ventures and structured parking) |
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60.2 million |
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| Common shares outstanding, plus common, preferred and LTIP units on an as-converted basis (but excluding Outperformance Plan and Multi-Year Long-Term Incentive Program Units) |
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171.5 million |
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| Dividend - Quarter/Annualized |
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$0.65/$2.60 (excludes special dividend) |
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| Dividend Yield |
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1.85% (excludes special dividend) |
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| Total Adjusted Market Capitalization (1) |
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$33.4 billion |
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| Senior Debt Ratings |
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Baa2 (Moody’s); BBB+ (Fitch); A- (S&P) |
| (1) |
For disclosures relating to our definition of Total Adjusted Market Capitalization, see page 48. |
3
Boston Properties, Inc.
First Quarter 2015
INVESTOR INFORMATION
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| Board of Directors |
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Management |
| Mortimer B. Zuckerman Chairman of the Board
Owen D. Thomas
Chief Executive Officer and Director
Douglas T. Linde President and Director
Carol B. Einiger
Director
Dr. Jacob A. Frenkel Director, Chair of
Nominating & Corporate Governance Committee Joel I. Klein
Director |
|
Matthew J. Lustig Director
Alan J. Patricof
Director, Chair of Audit Committee
Ivan G. Seidenberg Lead Independent Director
Martin Turchin
Director
David A. Twardock Director, Chair of Compensation
Committee |
|
Raymond A. Ritchey Executive Vice President,
National Director of Acquisitions & Development Michael E. LaBelle
Senior Vice President, Chief Financial Officer
Peter D. Johnston Senior Vice President and Regional Manager of
Washington, DC Bryan J. Koop
Senior Vice President and Regional Manager of Boston
Robert E. Pester Senior Vice President and Regional Manager of
San Francisco |
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John F. Powers Senior Vice President and
Regional Manager of New York Frank D. Burt
Senior Vice President, General Counsel
Lori W. Silverstein Vice President, Controller |
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| Company Information |
| Corporate Headquarters |
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Trading Symbol |
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Investor Relations |
|
Inquires |
| 800 Boylston Street Suite 1900
Boston, MA 02199 (t) 617.236.3300
(f) 617.236.3311 |
|
BXP
Stock Exchange Listing New York Stock Exchange |
|
Boston Properties, Inc. 800 Boylston Street,
Suite 1900 Boston, MA 02199 (t) 617.236.3322
(f) 617.236.3311 www.bostonproperties.com |
|
Inquiries should be directed to Michael E. LaBelle
Senior Vice President, Chief Financial Officer at 617.236.3352 or
mlabelle@bostonproperties.com
Arista Joyner, Investor Relations Manager at 617.236.3343 or
ajoyner@bostonproperties.com |
|
| Common Stock Data (NYSE: BXP) |
| Boston Properties’ common stock has the following characteristics (based on information reported by the New York Stock Exchange): |
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Q1 2015 |
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Q4 2014 |
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Q3 2014 |
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Q2 2014 |
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Q1 2014 |
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| High Closing Price |
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$ |
144.74 |
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|
$ |
136.28 |
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|
$ |
123.41 |
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$ |
121.95 |
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$ |
114.53 |
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| Low Closing Price |
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$ |
131.26 |
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$ |
115.10 |
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$ |
113.66 |
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$ |
114.45 |
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$ |
100.39 |
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| Average Closing Price |
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$ |
139.56 |
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$ |
126.63 |
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$ |
119.60 |
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$ |
118.07 |
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$ |
109.07 |
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| Closing Price, at the end of the quarter |
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$ |
140.48 |
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$ |
128.69 |
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$ |
115.76 |
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$ |
118.18 |
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$ |
114.53 |
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| Dividends per share |
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$ |
0.65 |
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$ |
0.65 |
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$ |
0.65 |
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$ |
0.65 |
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$ |
0.65 |
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| Special dividends per share |
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$ |
— |
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$ |
4.50 |
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$ |
— |
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$ |
— |
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$ |
— |
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| Total dividends |
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$ |
0.65 |
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$ |
5.15 |
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$ |
0.65 |
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$ |
0.65 |
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$ |
0.65 |
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| Closing dividend yield - annualized (1) |
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1.85 |
% |
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2.02 |
% |
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2.25 |
% |
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2.20 |
% |
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2.27 |
% |
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| Closing common shares outstanding, plus preferred shares and common, preferred and LTIP units on an as-converted basis (but
excluding Outperformance Plan and Multi-Year Long-Term Incentive Program Units) (thousands) (2) |
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171,490 |
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171,064 |
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171,062 |
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171,063 |
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171,029 |
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| Closing market value of outstanding shares and units (thousands) |
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$ |
24,291,548 |
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$ |
22,214,860 |
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$ |
20,004,159 |
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$ |
20,434,232 |
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$ |
19,805,957 |
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| (1) |
Excludes the special dividend of $4.50 per share paid on January 28, 2015 to shareholders of record as of the close of business on December 31, 2014. |
| (2) |
For additional detail, see page 12. |
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| Timing |
| Quarterly results for the next three quarters will be announced according to the following schedule: |
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| Second Quarter, 2015 |
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Tentatively July 29, 2015 |
| Third Quarter, 2015 |
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Tentatively October 29, 2015 |
| Fourth Quarter, 2015 |
|
Tentatively January 26, 2016 |
4
Boston Properties, Inc.
First Quarter 2015
RESEARCH COVERAGE
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| Equity Research Coverage |
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Debt Research Coverage |
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Rating Agencies |
| Lucy Moore Argus Research
Company 646.747.5456
Jeffrey Spector / Jamie Feldman Bank of America Merrill
Lynch 212.449.6329 / 212.449.6339
Ross Smotrich Barclays Capital
212.526.2306
Evan Smith Cantor Fitzgerald
215.915.1220
Thomas Lesnick Capital One Securities
504.528.9174
Michael Bilerman / Emmanuel Korchman Citigroup
Global Markets 212.816.1383 / 212.816.1382
James Sullivan / Tom Catherwood Cowen and Company
646.562.1380 / 646.562.1382
Ian Weissman / George Auerbach Credit Suisse
212.538.6889 / 212.538.8082
Barry Oxford D.A. Davidson & Co.
212.240.9871
Vincent Chao / Venkat Kommineni Deutsche Bank
Securities 212.250.6799 / 212.250.6090
Steve Sakwa / Gabe Hilmoe Evercore ISI
212.446.9462 / 212.446.9459
Brad Burke Goldman Sachs
917.343.2082
Jed Reagan / Katherine Corwith Green Street Advisors
949.640.8780 |
|
Omotayo Okusanya / Charles Croson
Jefferies & Co. 212.336.7076 / 917.421.1943
Anthony Paolone
J.P. Morgan Securities 212.622.6682
Jordan Sadler / Austin Wurschmidt
KeyBanc Capital Markets 917.368.2280 / 917.368.2311
Richard Anderson
Mizuho Securities 212.205.8487
Vance Edelson
Morgan Stanley 212.761.0078
Rich Moore / Mike Carroll
RBC Capital Markets 440.715.2646 / 440.715.2649
David Rodgers / Matthew Spencer
RW Baird 216.737.7341 / 414.298.5053
Alexander Goldfarb / Andrew Schaffer
Sandler O’Neill & Partners 212.466.7937 /
212.466.8062 John Guinee / Erin Aslakson
Stifel, Nicolaus & Company 443.224.1307 /
443.224.1350 Michael Lewis
SunTrust Robinson Humphrey 212.319.5659
Ross Nussbaum / Nick Yulico
UBS Securities 212.713.2484 / 212.713.3402
Brendan Maiorana
Wells Fargo Securities 804.649.2311 |
|
Scott Frost
Bank of America Merrill Lynch
646.855.8078
Thomas Cook Citi Investment Research
212.723.1112
John Giordano Credit Suisse Securities
212.538.4935
Ron Perotta Goldman Sachs
212.702.7885
Mark Streeter J.P. Morgan Securities
212.834.5086
Thierry Perrein / Jason Jones Wells Fargo
704.715.8455 / 704.715.7932 |
|
Stephen Boyd Fitch
Ratings 212.908.9153
Ranjini Venkatesan
Moody’s Investors Service 212.553.3828
Anita Ogbara
Standard & Poor’s 212.438.5077 |
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With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those
analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties’ performance made by
the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or
recommendations made by any of such analysts.
5
Boston Properties, Inc.
First Quarter 2015
FINANCIAL HIGHLIGHTS
(unaudited and in thousands, except per share amounts)
This section includes non-GAAP financial measures,
which are accompanied by what we consider the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the non-GAAP financial measures presented and the
most directly comparable GAAP financial measures are shown on pages 9-11. A description of the non-GAAP financial measures we present and a statement of the reasons why management believes the non-GAAP measures provide useful information to
investors about the Company’s financial condition and results of operations can be found on pages 48-50.
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Three Months Ended |
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31-Mar-15 |
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31-Dec-14 |
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30-Sep-14 |
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30-Jun-14 |
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31-Mar-14 |
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| Selected Items: |
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| Revenue |
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$ |
618,476 |
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$ |
613,707 |
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$ |
618,803 |
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|
$ |
589,794 |
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$ |
574,694 |
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| Straight-line rent (1) |
|
$ |
23,164 |
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|
$ |
18,639 |
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|
$ |
18,281 |
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|
$ |
10,672 |
|
|
$ |
8,140 |
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| Fair value lease revenue (1) (2) |
|
$ |
7,081 |
|
|
$ |
12,236 |
|
|
$ |
9,207 |
|
|
$ |
7,425 |
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$ |
7,501 |
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| Revenue from residential properties |
|
$ |
6,854 |
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|
$ |
7,195 |
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|
$ |
7,018 |
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|
$ |
6,298 |
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|
$ |
5,682 |
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| Company share of funds from operations from unconsolidated joint ventures |
|
$ |
9,702 |
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|
$ |
7,282 |
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|
$ |
9,518 |
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|
$ |
7,820 |
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|
$ |
7,400 |
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| Lease termination fees (1) (3) |
|
$ |
14,086 |
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|
$ |
1,117 |
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|
$ |
9,878 |
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|
$ |
1,027 |
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|
$ |
1,119 |
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| Ground rent expense (4) |
|
$ |
4,404 |
|
|
$ |
4,990 |
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|
$ |
4,986 |
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|
$ |
4,984 |
|
|
$ |
4,986 |
|
| ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
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|
$ |
2,438 |
|
| Fair value interest adjustment (1) |
|
$ |
7,796 |
|
|
$ |
7,737 |
|
|
$ |
7,694 |
|
|
$ |
7,630 |
|
|
$ |
7,583 |
|
| Capitalized interest |
|
$ |
7,965 |
|
|
$ |
7,667 |
|
|
$ |
12,223 |
|
|
$ |
14,877 |
|
|
$ |
17,709 |
|
| Capitalized wages |
|
$ |
3,626 |
|
|
$ |
3,483 |
|
|
$ |
3,403 |
|
|
$ |
4,103 |
|
|
$ |
3,547 |
|
| Operating Margins [(rental revenue - rental expense)/rental revenue] (5) |
|
|
65.3 |
% |
|
|
66.5 |
% |
|
|
66.2 |
% |
|
|
66.5 |
% |
|
|
65.1 |
% |
| Gains (losses) from early extinguishments of debt |
|
$ |
— |
|
|
$ |
(10,633 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Income before gains on sales of real estate |
|
$ |
114,086 |
|
|
$ |
85,323 |
|
|
$ |
109,038 |
|
|
$ |
95,901 |
|
|
$ |
67,756 |
|
| Net income attributable to Boston Properties, Inc. common shareholders |
|
$ |
171,182 |
|
|
$ |
174,510 |
|
|
$ |
127,724 |
|
|
$ |
76,527 |
|
|
$ |
54,034 |
|
| Funds from operations (FFO) attributable to Boston Properties, Inc. |
|
$ |
200,385 |
|
|
$ |
193,186 |
|
|
$ |
223,403 |
|
|
$ |
207,010 |
|
|
$ |
183,844 |
|
| FFO per share - diluted |
|
$ |
1.30 |
|
|
$ |
1.26 |
|
|
$ |
1.46 |
|
|
$ |
1.35 |
|
|
$ |
1.20 |
|
| Net income attributable to Boston Properties, Inc. per share - basic |
|
$ |
1.12 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
| Net income attributable to Boston Properties, Inc. per share - diluted |
|
$ |
1.11 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
| Dividends per common share (6) |
|
$ |
0.65 |
|
|
$ |
5.15 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
|
$ |
0.65 |
|
| Funds available for distribution to common shareholders and common unitholders (FAD) (7) |
|
$ |
147,135 |
|
|
$ |
162,630 |
|
|
$ |
170,801 |
|
|
$ |
184,660 |
|
|
$ |
167,752 |
|
|
|
|
|
|
|
| Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Coverage Ratio (excluding capitalized interest) - cash basis (7) |
|
|
3.11 |
|
|
|
2.83 |
|
|
|
3.07 |
|
|
|
3.06 |
|
|
|
2.90 |
|
| Interest Coverage Ratio (including capitalized interest) - cash basis (7) |
|
|
2.91 |
|
|
|
2.66 |
|
|
|
2.79 |
|
|
|
2.72 |
|
|
|
2.53 |
|
| FFO Payout Ratio (8) |
|
|
50.00 |
% |
|
|
51.59 |
% |
|
|
44.52 |
% |
|
|
48.15 |
% |
|
|
54.17 |
% |
| FAD Payout Ratio (8) |
|
|
75.72 |
% |
|
|
68.42 |
% |
|
|
65.14 |
% |
|
|
60.09 |
% |
|
|
65.98 |
% |
|
|
|
|
|
|
| Balance Sheet Items: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Above-market rents (included within Prepaid Expenses and Other Assets) |
|
$ |
75,063 |
|
|
$ |
80,864 |
|
|
$ |
86,609 |
|
|
$ |
92,598 |
|
|
$ |
98,555 |
|
| Below-market rents (included within Other Liabilities) |
|
$ |
227,651 |
|
|
$ |
243,395 |
|
|
$ |
266,681 |
|
|
$ |
284,726 |
|
|
$ |
300,292 |
|
| Accrued ground rent expense (included within Other Liabilities) |
|
$ |
40,751 |
|
|
$ |
56,117 |
|
|
$ |
54,448 |
|
|
$ |
52,779 |
|
|
$ |
51,071 |
|
| Accrued interest payable on outside members’ notes payable (included within Accrued Interest Payable) |
|
$ |
96,028 |
|
|
$ |
88,643 |
|
|
$ |
81,372 |
|
|
$ |
78,270 |
|
|
$ |
77,304 |
|
|
|
|
|
|
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
| Capitalization: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common Stock Price @ Quarter End |
|
$ |
140.48 |
|
|
$ |
128.69 |
|
|
$ |
115.76 |
|
|
$ |
118.18 |
|
|
$ |
114.53 |
|
| Equity Value @ Quarter End |
|
$ |
24,291,548 |
|
|
$ |
22,214,860 |
|
|
$ |
20,004,159 |
|
|
$ |
20,434,232 |
|
|
$ |
19,805,957 |
|
| Total Consolidated Debt |
|
$ |
9,886,696 |
|
|
$ |
9,906,984 |
|
|
$ |
10,475,750 |
|
|
$ |
10,558,609 |
|
|
$ |
10,577,135 |
|
| Total Consolidated Market Capitalization |
|
$ |
34,178,244 |
|
|
$ |
32,121,844 |
|
|
$ |
30,479,909 |
|
|
$ |
30,992,841 |
|
|
$ |
30,383,092 |
|
| Total Consolidated Debt/Total Consolidated Market Capitalization (9) |
|
|
28.93 |
% |
|
|
30.84 |
% |
|
|
34.37 |
% |
|
|
34.07 |
% |
|
|
34.81 |
% |
|
|
|
|
|
|
| BXP’s Share of Unconsolidated Joint Venture Debt |
|
$ |
351,977 |
|
|
$ |
351,500 |
|
|
$ |
331,765 |
|
|
$ |
328,711 |
|
|
$ |
328,869 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Partners’ Share of Consolidated Debt |
|
$ |
1,174,948 |
|
|
$ |
1,181,797 |
|
|
$ |
867,377 |
|
|
$ |
872,839 |
|
|
$ |
878,265 |
|
| Total Adjusted Debt |
|
$ |
9,063,725 |
|
|
$ |
9,076,687 |
|
|
$ |
9,940,138 |
|
|
$ |
10,014,481 |
|
|
$ |
10,027,739 |
|
| Total Adjusted Market Capitalization (10) |
|
$ |
33,355,273 |
|
|
$ |
31,291,547 |
|
|
$ |
29,944,297 |
|
|
$ |
30,448,713 |
|
|
$ |
29,833,696 |
|
| Total Adjusted Debt/Total Adjusted Market Capitalization (9) (10) |
|
|
27.17 |
% |
|
|
29.01 |
% |
|
|
33.20 |
% |
|
|
32.89 |
% |
|
|
33.61 |
% |
| (1) |
Includes the Company’s share of consolidated and unconsolidated joint ventures amounts. |
| (2) |
Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates. |
| (3) |
For the three months ended March 31, 2015 and September 30, 2014, includes distributions received by the Company from its unsecured creditor claim against Lehman Brothers, Inc. totaling approximately $4.5
million and $7.7 million, respectively. |
| (4) |
Includes non-cash straight-line adjustments to ground rent. See page 11 for the straight-line adjustments to the ground rent expense. |
| (5) |
Rental expense consists of operating expenses, real estate taxes and ground rent expense. Amounts are exclusive of the gross up of reimbursable electricity and other amounts totaling $17,867, $17,218, $18,172, $17,003
and $15,996 for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
| (6) |
For the three months ended December 31, 2014, dividends per share includes the $4.50 per common share special dividend paid on January 28, 2015 to shareholders of record as of the close of business on December
31, 2014. |
| (7) |
The Company believes that the presentation of its interest coverage ratios provides investors with useful information about the Company’s financial performance as it relates to its cash interest expense
obligations, which may assist investors in evaluating the Company’s ability to service its existing debt obligations. For a quantitative reconciliation, see page 11. |
| (8) |
FFO Payout Ratio is defined as dividends per share to common shareholders divided by FFO per share. FAD Payout Ratio is defined as distributions to common shareholders and unitholders divided by FAD. For the three
months ended December 31, 2014, excludes the $4.50 per share special dividend paid on January 28, 2015 to shareholders of record as of the close of business on December 31, 2014. |
| (9) |
For disclosures related to our definitions, see page 48. |
| (10) |
For additional detail, see page 12. |
6
Boston Properties, Inc.
First Quarter 2015
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate |
|
$ |
18,153,816 |
|
|
$ |
18,231,978 |
|
|
$ |
18,362,993 |
|
|
$ |
17,680,555 |
|
|
$ |
17,258,665 |
|
| Construction in progress (1) |
|
|
797,148 |
|
|
|
736,311 |
|
|
|
715,609 |
|
|
|
1,309,781 |
|
|
|
1,564,821 |
|
| Land held for future development |
|
|
271,327 |
|
|
|
268,114 |
|
|
|
276,804 |
|
|
|
273,587 |
|
|
|
300,498 |
|
| Less accumulated depreciation |
|
|
(3,646,853 |
) |
|
|
(3,547,659 |
) |
|
|
(3,469,130 |
) |
|
|
(3,368,974 |
) |
|
|
(3,263,208 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total real estate |
|
|
15,575,438 |
|
|
|
15,688,744 |
|
|
|
15,886,276 |
|
|
|
15,894,949 |
|
|
|
15,860,776 |
|
| Cash and cash equivalents |
|
|
1,064,396 |
|
|
|
1,763,079 |
|
|
|
846,664 |
|
|
|
1,036,576 |
|
|
|
1,179,573 |
|
| Cash held in escrows (2) |
|
|
588,218 |
|
|
|
487,321 |
|
|
|
153,161 |
|
|
|
59,248 |
|
|
|
54,240 |
|
| Marketable securities |
|
|
20,736 |
|
|
|
19,459 |
|
|
|
18,834 |
|
|
|
18,927 |
|
|
|
18,026 |
|
| Tenant and other receivables, net |
|
|
47,768 |
|
|
|
46,595 |
|
|
|
43,210 |
|
|
|
51,348 |
|
|
|
37,812 |
|
| Accrued rental income, net |
|
|
713,874 |
|
|
|
691,999 |
|
|
|
689,885 |
|
|
|
673,587 |
|
|
|
661,730 |
|
| Deferred charges, net |
|
|
806,468 |
|
|
|
831,744 |
|
|
|
837,907 |
|
|
|
853,924 |
|
|
|
861,567 |
|
| Prepaid expenses and other assets |
|
|
165,985 |
|
|
|
164,432 |
|
|
|
219,074 |
|
|
|
133,035 |
|
|
|
178,488 |
|
| Investments in unconsolidated joint ventures |
|
|
196,188 |
|
|
|
193,394 |
|
|
|
191,593 |
|
|
|
188,887 |
|
|
|
140,533 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
19,179,071 |
|
|
$ |
19,886,767 |
|
|
$ |
18,886,604 |
|
|
$ |
18,910,481 |
|
|
$ |
18,992,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage notes payable |
|
$ |
4,289,120 |
|
|
$ |
4,309,484 |
|
|
$ |
4,328,464 |
|
|
$ |
4,411,453 |
|
|
$ |
4,430,110 |
|
| Unsecured senior notes, net of discount |
|
|
5,288,101 |
|
|
|
5,287,704 |
|
|
|
5,837,172 |
|
|
|
5,836,729 |
|
|
|
5,836,290 |
|
| Unsecured line of credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Mezzanine notes payable |
|
|
309,475 |
|
|
|
309,796 |
|
|
|
310,114 |
|
|
|
310,427 |
|
|
|
310,735 |
|
| Outside members’ notes payable |
|
|
180,000 |
|
|
|
180,000 |
|
|
|
180,000 |
|
|
|
180,000 |
|
|
|
180,000 |
|
| Accounts payable and accrued expenses |
|
|
224,086 |
|
|
|
243,263 |
|
|
|
253,600 |
|
|
|
216,080 |
|
|
|
218,028 |
|
| Dividends and distributions payable |
|
|
112,796 |
|
|
|
882,472 |
|
|
|
112,708 |
|
|
|
112,420 |
|
|
|
114,799 |
|
| Accrued interest payable |
|
|
186,630 |
|
|
|
163,532 |
|
|
|
181,954 |
|
|
|
156,024 |
|
|
|
178,651 |
|
| Other liabilities |
|
|
483,762 |
|
|
|
502,255 |
|
|
|
528,872 |
|
|
|
551,664 |
|
|
|
569,949 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
11,073,970 |
|
|
|
11,878,506 |
|
|
|
11,732,884 |
|
|
|
11,774,797 |
|
|
|
11,838,562 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commitments and contingencies |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Redeemable preferred units of the Operating Partnership |
|
|
633 |
|
|
|
633 |
|
|
|
2,022 |
|
|
|
18,006 |
|
|
|
51,312 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Redeemable interest in property partnership |
|
|
105,520 |
|
|
|
104,692 |
|
|
|
104,105 |
|
|
|
103,778 |
|
|
|
100,327 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Stockholders’ equity attributable to Boston Properties, Inc.: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value,
liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding |
|
|
200,000 |
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
200,000 |
|
|
|
200,000 |
|
| Common stock, $0.01 par value, 250,000,000 shares authorized, 153,402,107, 153,113,945, 153,099,786, 153,092,574 and 153,017,311
outstanding, respectively |
|
|
1,534 |
|
|
|
1,531 |
|
|
|
1,531 |
|
|
|
1,531 |
|
|
|
1,530 |
|
| Additional paid-in capital |
|
|
6,286,260 |
|
|
|
6,270,257 |
|
|
|
5,684,649 |
|
|
|
5,679,578 |
|
|
|
5,668,230 |
|
| Dividends in excess of earnings |
|
|
(690,993 |
) |
|
|
(762,464 |
) |
|
|
(148,566 |
) |
|
|
(176,929 |
) |
|
|
(153,979 |
) |
| Treasury common stock, at cost |
|
|
(2,722 |
) |
|
|
(2,722 |
) |
|
|
(2,722 |
) |
|
|
(2,722 |
) |
|
|
(2,722 |
) |
| Accumulated other comprehensive loss |
|
|
(11,907 |
) |
|
|
(9,304 |
) |
|
|
(9,866 |
) |
|
|
(10,429 |
) |
|
|
(10,989 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total stockholders’ equity attributable to Boston Properties, Inc. |
|
|
5,782,172 |
|
|
|
5,697,298 |
|
|
|
5,725,026 |
|
|
|
5,691,029 |
|
|
|
5,702,070 |
|
|
|
|
|
|
|
| Noncontrolling interests: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common units of the Operating Partnership |
|
|
617,274 |
|
|
|
603,171 |
|
|
|
606,002 |
|
|
|
601,775 |
|
|
|
575,381 |
|
| Property partnerships |
|
|
1,599,502 |
|
|
|
1,602,467 |
|
|
|
716,565 |
|
|
|
721,096 |
|
|
|
725,093 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
7,998,948 |
|
|
|
7,902,936 |
|
|
|
7,047,593 |
|
|
|
7,013,900 |
|
|
|
7,002,544 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
19,179,071 |
|
|
$ |
19,886,767 |
|
|
$ |
18,886,604 |
|
|
$ |
18,910,481 |
|
|
$ |
18,992,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Represents the portion of the Company’s consolidated development projects that qualifies for interest capitalization. Such portion generally excludes intangible assets. |
| (2) |
At March 31, 2015, approximately $534.2 million was held by a qualified intermediary for possible investment in a like-kind exchange in accordance with Section 1031 of the Internal Revenue Code in connection
with the sales of the Company’s Patriots Park, 130 Third Avenue, Washingtonian North and Residences on The Avenue properties. Approximately $99.9 million from the sale of the Company’s Mountain View and Broad Run properties was
released from escrow during the three months ended March 31, 2015. At December 31, 2014, approximately $433.6 million was held by a qualified intermediary for possible investment in a like-kind exchange in connection with the sales of the
Company’s Mountain View, Broad Run, Patriots Park and 130 Third Avenue properties. |
7
Boston Properties, Inc.
First Quarter 2015
CONSOLIDATED INCOME STATEMENTS
(in thousands, except for per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
| Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Base Rent |
|
$ |
490,682 |
|
|
$ |
484,011 |
|
|
$ |
484,071 |
|
|
$ |
463,239 |
|
|
$ |
455,018 |
|
| Recoveries from tenants |
|
|
88,593 |
|
|
|
85,946 |
|
|
|
90,103 |
|
|
|
81,382 |
|
|
|
81,934 |
|
| Parking and other |
|
|
24,788 |
|
|
|
25,724 |
|
|
|
26,236 |
|
|
|
26,300 |
|
|
|
24,333 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total rental revenue |
|
|
604,063 |
|
|
|
595,681 |
|
|
|
600,410 |
|
|
|
570,921 |
|
|
|
561,285 |
|
| Hotel revenue |
|
|
9,085 |
|
|
|
10,907 |
|
|
|
11,918 |
|
|
|
12,367 |
|
|
|
8,193 |
|
| Development and management services |
|
|
5,328 |
|
|
|
7,119 |
|
|
|
6,475 |
|
|
|
6,506 |
|
|
|
5,216 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
618,476 |
|
|
|
613,707 |
|
|
|
618,803 |
|
|
|
589,794 |
|
|
|
574,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
120,954 |
|
|
|
111,342 |
|
|
|
114,116 |
|
|
|
110,239 |
|
|
|
114,455 |
|
| Real estate taxes |
|
|
100,396 |
|
|
|
99,735 |
|
|
|
101,063 |
|
|
|
92,407 |
|
|
|
91,933 |
|
| Hotel operating |
|
|
7,576 |
|
|
|
7,539 |
|
|
|
7,585 |
|
|
|
7,315 |
|
|
|
6,797 |
|
| General and administrative (1) |
|
|
28,791 |
|
|
|
23,172 |
|
|
|
22,589 |
|
|
|
23,271 |
|
|
|
29,905 |
|
| Transaction costs |
|
|
327 |
|
|
|
640 |
|
|
|
1,402 |
|
|
|
661 |
|
|
|
437 |
|
| Depreciation and amortization |
|
|
154,223 |
|
|
|
162,430 |
|
|
|
157,245 |
|
|
|
154,628 |
|
|
|
154,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total expenses |
|
|
412,267 |
|
|
|
404,858 |
|
|
|
404,000 |
|
|
|
388,521 |
|
|
|
397,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
206,209 |
|
|
|
208,849 |
|
|
|
214,803 |
|
|
|
201,273 |
|
|
|
176,897 |
|
| Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income from unconsolidated joint ventures |
|
|
14,834 |
|
|
|
2,700 |
|
|
|
4,419 |
|
|
|
2,834 |
|
|
|
2,816 |
|
| Interest and other income |
|
|
1,407 |
|
|
|
1,924 |
|
|
|
3,421 |
|
|
|
2,109 |
|
|
|
1,311 |
|
| Gains (losses) from investments in securities (1) |
|
|
393 |
|
|
|
387 |
|
|
|
(297 |
) |
|
|
662 |
|
|
|
286 |
|
| Interest expense (2) |
|
|
(108,757 |
) |
|
|
(117,904 |
) |
|
|
(113,308 |
) |
|
|
(110,977 |
) |
|
|
(113,554 |
) |
| Losses from early extinguishments of debt |
|
|
— |
|
|
|
(10,633 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
|
114,086 |
|
|
|
85,323 |
|
|
|
109,038 |
|
|
|
95,901 |
|
|
|
67,756 |
|
| Gains on sales of real estate (3) |
|
|
95,084 |
|
|
|
126,102 |
|
|
|
41,937 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
209,170 |
|
|
|
211,425 |
|
|
|
150,975 |
|
|
|
95,901 |
|
|
|
67,756 |
|
| Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interest in property partnerships |
|
|
(15,208 |
) |
|
|
(13,088 |
) |
|
|
(5,566 |
) |
|
|
(7,553 |
) |
|
|
(4,354 |
) |
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
(3 |
) |
|
|
(9 |
) |
|
|
(75 |
) |
|
|
(320 |
) |
|
|
(619 |
) |
| Noncontrolling interest - common units of the Operating Partnership (4) |
|
|
(20,188 |
) |
|
|
(21,172 |
) |
|
|
(14,963 |
) |
|
|
(8,883 |
) |
|
|
(6,160 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. |
|
|
173,771 |
|
|
|
177,156 |
|
|
|
130,371 |
|
|
|
79,145 |
|
|
|
56,623 |
|
| Preferred dividends |
|
|
(2,589 |
) |
|
|
(2,646 |
) |
|
|
(2,647 |
) |
|
|
(2,618 |
) |
|
|
(2,589 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. common shareholders |
|
$ |
171,182 |
|
|
$ |
174,510 |
|
|
$ |
127,724 |
|
|
$ |
76,527 |
|
|
$ |
54,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| INCOME PER SHARE OF COMMON STOCK (EPS) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. per share - basic |
|
$ |
1.12 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. per share - diluted |
|
$ |
1.11 |
|
|
$ |
1.14 |
|
|
$ |
0.83 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Gains (losses) from investments in securities includes $393, $387, $(297), $662 and $286 and general and administrative expense includes $(393), $(387), $297, $(662) and $(286) for the three months ended March 31,
2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively, related to the Company’s deferred compensation plan. |
| (2) |
For the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, interest expense includes $7,385, $7,271, $7,102, $6,965 and
$6,940, respectively, consisting of the interest expense on the partner loans for the 767 Fifth Avenue consolidated joint venture, which amount is allocated to the partners within noncontrolling interests in property partnerships. The Company’s
share of the interest expense on its loan to the joint venture eliminates in consolidation. |
| (3) |
See page 45 for additional information. |
| (4) |
Equals noncontrolling interest - common units of the Operating Partnership’s share of 10.44%, 10.34%, 10.34%, 10.16% and 9.90% of income before net income attributable to noncontrolling interests in Operating
Partnership after deduction for preferred distributions for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
| Note: |
Certain prior period amounts have been reclassified to conform to the current period presentation. |
8
Boston Properties, Inc.
First Quarter 2015
FUNDS FROM OPERATIONS (FFO)
(in thousands, except for per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. common shareholders |
|
$ |
171,182 |
|
|
$ |
174,510 |
|
|
$ |
127,724 |
|
|
$ |
76,527 |
|
|
$ |
54,034 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
|
2,589 |
|
|
|
2,646 |
|
|
|
2,647 |
|
|
|
2,618 |
|
|
|
2,589 |
|
| Noncontrolling interest - common units of the Operating Partnership |
|
|
20,188 |
|
|
|
21,172 |
|
|
|
14,963 |
|
|
|
8,883 |
|
|
|
6,160 |
|
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
3 |
|
|
|
9 |
|
|
|
75 |
|
|
|
320 |
|
|
|
619 |
|
| Noncontrolling interests in property partnerships |
|
|
15,208 |
|
|
|
13,088 |
|
|
|
5,566 |
|
|
|
7,553 |
|
|
|
4,354 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gains on sales of real estate |
|
|
95,084 |
|
|
|
126,102 |
|
|
|
41,937 |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
|
114,086 |
|
|
|
85,323 |
|
|
|
109,038 |
|
|
|
95,901 |
|
|
|
67,756 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate depreciation and amortization (1) |
|
|
148,754 |
|
|
|
166,665 |
|
|
|
162,012 |
|
|
|
159,272 |
|
|
|
158,514 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interests in property partnerships’ share of funds from operations |
|
|
36,515 |
|
|
|
33,866 |
|
|
|
19,150 |
|
|
|
21,825 |
|
|
|
19,023 |
|
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
3 |
|
|
|
9 |
|
|
|
75 |
|
|
|
320 |
|
|
|
619 |
|
| Preferred dividends |
|
|
2,589 |
|
|
|
2,646 |
|
|
|
2,647 |
|
|
|
2,618 |
|
|
|
2,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds from operations (FFO) attributable to the Operating Partnership |
|
|
223,733 |
|
|
|
215,467 |
|
|
|
249,178 |
|
|
|
230,410 |
|
|
|
204,039 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interest - common units of the Operating Partnership’s share of funds from operations |
|
|
23,348 |
|
|
|
22,281 |
|
|
|
25,775 |
|
|
|
23,400 |
|
|
|
20,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO attributable to Boston Properties, Inc. (2) |
|
$ |
200,385 |
|
|
$ |
193,186 |
|
|
$ |
223,403 |
|
|
$ |
207,010 |
|
|
$ |
183,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share - basic |
|
$ |
1.31 |
|
|
$ |
1.26 |
|
|
$ |
1.46 |
|
|
$ |
1.35 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding - basic |
|
|
153,230 |
|
|
|
153,128 |
|
|
|
153,120 |
|
|
|
153,078 |
|
|
|
153,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share - diluted |
|
$ |
1.30 |
|
|
$ |
1.26 |
|
|
$ |
1.46 |
|
|
$ |
1.35 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding - diluted |
|
|
153,873 |
|
|
|
153,550 |
|
|
|
153,273 |
|
|
|
153,623 |
|
|
|
154,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Real estate depreciation and amortization consists of depreciation and amortization from the consolidated statements of operations of $154,223, $162,430, $157,245, $154,628 and $154,270 and our share of unconsolidated
joint venture real estate depreciation and amortization of $(5,132), $4,582, $5,099, $4,986 and $4,584, less corporate related depreciation of $337, $347, $332, $342 and $340 for the three months ended March 31, 2015, December 31,
2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
| (2) |
Based on weighted average basic shares for the quarter. The Company’s share for the quarter ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and
March 31, 2014 was 89.56%, 89.66%, 89.66%, 89.84% and 90.10%, respectively. |
9
Boston Properties, Inc.
First Quarter 2015
RECONCILIATION TO DILUTED FUNDS FROM OPERATIONS
(in thousands, except for per share amounts)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
March 31, 2015 |
|
|
December 31, 2014 |
|
|
September 30, 2014 |
|
|
June 30, 2014 |
|
|
March 31, 2014 |
|
| |
|
Income
(Numerator) |
|
|
Shares/Units
(Denominator) |
|
|
Income
(Numerator) |
|
|
Shares/Units
(Denominator) |
|
|
Income
(Numerator) |
|
|
Shares/Units
(Denominator) |
|
|
Income
(Numerator) |
|
|
Shares/Units
(Denominator) |
|
|
Income
(Numerator) |
|
|
Shares/Units
(Denominator) |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic FFO |
|
$ |
223,733 |
|
|
|
171,084 |
|
|
$ |
215,467 |
|
|
|
170,789 |
|
|
$ |
249,178 |
|
|
|
170,785 |
|
|
$ |
230,410 |
|
|
|
170,382 |
|
|
$ |
204,039 |
|
|
|
169,841 |
|
| Effect of Dilutive Securities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Convertible Preferred Units |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
230 |
|
|
|
385 |
|
|
|
530 |
|
|
|
874 |
|
| Stock based compensation |
|
|
— |
|
|
|
643 |
|
|
|
— |
|
|
|
422 |
|
|
|
— |
|
|
|
153 |
|
|
|
— |
|
|
|
160 |
|
|
|
— |
|
|
|
139 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted FFO |
|
$ |
223,733 |
|
|
|
171,727 |
|
|
$ |
215,467 |
|
|
|
171,211 |
|
|
$ |
249,178 |
|
|
|
170,938 |
|
|
$ |
230,640 |
|
|
|
170,927 |
|
|
$ |
204,569 |
|
|
|
170,854 |
|
|
|
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interest - common units of the Operating Partnership’s share of diluted funds from operations |
|
|
23,261 |
|
|
|
17,854 |
|
|
|
22,226 |
|
|
|
17,661 |
|
|
|
25,751 |
|
|
|
17,665 |
|
|
|
23,349 |
|
|
|
17,304 |
|
|
|
20,128 |
|
|
|
16,811 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Company’s share of diluted FFO (1) |
|
$ |
200,472 |
|
|
|
153,873 |
|
|
$ |
193,241 |
|
|
|
153,550 |
|
|
$ |
223,427 |
|
|
|
153,273 |
|
|
$ |
207,291 |
|
|
|
153,623 |
|
|
$ |
184,441 |
|
|
|
154,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share - basic |
|
$ |
1.31 |
|
|
|
|
|
|
$ |
1.26 |
|
|
|
|
|
|
$ |
1.46 |
|
|
|
|
|
|
$ |
1.35 |
|
|
|
|
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share - diluted |
|
$ |
1.30 |
|
|
|
|
|
|
$ |
1.26 |
|
|
|
|
|
|
$ |
1.46 |
|
|
|
|
|
|
$ |
1.35 |
|
|
|
|
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Based on weighted average diluted shares for the quarter. The Company’s share for the quarter ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and
March 31, 2014 was 89.60%, 89.68%, 89.67%, 89.88% and 90.16%, respectively. |
10
Boston Properties, Inc.
First Quarter 2015
Funds Available for Distribution (FAD)
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended |
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
| Basic FFO (see page 9) |
|
$ |
223,733 |
|
|
$ |
215,467 |
|
|
$ |
249,178 |
|
|
$ |
230,410 |
|
|
$ |
204,039 |
|
| 2nd generation tenant improvements and leasing commissions |
|
|
(55,121 |
) |
|
|
(20,824 |
) |
|
|
(47,649 |
) |
|
|
(22,690 |
) |
|
|
(25,336 |
) |
| Straight-line rent (1) |
|
|
(23,164 |
) |
|
|
(18,639 |
) |
|
|
(18,281 |
) |
|
|
(10,672 |
) |
|
|
(8,140 |
) |
| Lease transaction costs which qualify as rent inducements (1) (2) |
|
|
5,929 |
|
|
|
3,533 |
|
|
|
1,516 |
|
|
|
1,605 |
|
|
|
2,849 |
|
| Recurring capital expenditures |
|
|
(8,763 |
) |
|
|
(12,571 |
) |
|
|
(12,691 |
) |
|
|
(9,654 |
) |
|
|
(7,694 |
) |
| Fair value interest adjustment (1) |
|
|
(7,796 |
) |
|
|
(7,737 |
) |
|
|
(7,694 |
) |
|
|
(7,630 |
) |
|
|
(7,583 |
) |
| ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,438 |
|
| Fair value lease revenue (1) (3) |
|
|
(7,081 |
) |
|
|
(12,236 |
) |
|
|
(9,207 |
) |
|
|
(7,425 |
) |
|
|
(7,501 |
) |
| Hotel improvements, equipment upgrades and replacements |
|
|
(491 |
) |
|
|
(328 |
) |
|
|
(514 |
) |
|
|
(495 |
) |
|
|
(1,557 |
) |
| Straight-line ground rent expense adjustment (4) |
|
|
1,196 |
|
|
|
1,669 |
|
|
|
1,669 |
|
|
|
1,708 |
|
|
|
1,747 |
|
| Non-real estate depreciation |
|
|
337 |
|
|
|
347 |
|
|
|
332 |
|
|
|
342 |
|
|
|
340 |
|
| Stock-based compensation |
|
|
11,011 |
|
|
|
5,391 |
|
|
|
5,809 |
|
|
|
6,519 |
|
|
|
10,380 |
|
| Non-cash losses from early extinguishments of debt |
|
|
— |
|
|
|
96 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Partners’ share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing
commissions |
|
|
1,511 |
|
|
|
652 |
|
|
|
6,593 |
|
|
|
804 |
|
|
|
2,800 |
|
| Unearned portion of capitalized fees |
|
|
5,834 |
|
|
|
7,810 |
|
|
|
1,740 |
|
|
|
1,838 |
|
|
|
970 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds available for distribution to common shareholders and common unitholders (FAD) |
|
$ |
147,135 |
|
|
$ |
162,630 |
|
|
$ |
170,801 |
|
|
$ |
184,660 |
|
|
$ |
167,752 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest Coverage Ratios |
|
| (in thousands, except for ratio amounts) |
|
|
|
| |
|
Three Months Ended |
|
| |
|
31-Mar-15 |
|
|
31-Dec-14 |
|
|
30-Sep-14 |
|
|
30-Jun-14 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
$ |
114,086 |
|
|
$ |
85,323 |
|
|
$ |
109,038 |
|
|
$ |
95,901 |
|
|
$ |
67,756 |
|
| Interest expense |
|
|
108,757 |
|
|
|
117,904 |
|
|
|
113,308 |
|
|
|
110,977 |
|
|
|
113,554 |
|
| Interest expense from unconsolidated joint ventures |
|
|
4,977 |
|
|
|
3,248 |
|
|
|
3,254 |
|
|
|
3,270 |
|
|
|
3,284 |
|
| Depreciation and amortization expense |
|
|
154,223 |
|
|
|
162,430 |
|
|
|
157,245 |
|
|
|
154,628 |
|
|
|
154,270 |
|
| Depreciation and amortization expense from unconsolidated joint ventures |
|
|
(5,132 |
) |
|
|
4,582 |
|
|
|
5,099 |
|
|
|
4,986 |
|
|
|
4,584 |
|
| Non-cash losses from early extinguishments of debt |
|
|
— |
|
|
|
96 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Stock-based compensation |
|
|
11,011 |
|
|
|
5,391 |
|
|
|
5,809 |
|
|
|
6,519 |
|
|
|
10,380 |
|
| Straight-line ground rent expense adjustment (4) |
|
|
1,196 |
|
|
|
1,669 |
|
|
|
1,669 |
|
|
|
1,708 |
|
|
|
1,747 |
|
| Straight-line rent (1) |
|
|
(23,164 |
) |
|
|
(18,639 |
) |
|
|
(18,281 |
) |
|
|
(10,672 |
) |
|
|
(8,140 |
) |
| Lease transaction costs which qualify as rent inducements (1) (2) |
|
|
5,929 |
|
|
|
3,533 |
|
|
|
1,516 |
|
|
|
1,605 |
|
|
|
2,849 |
|
| Fair value lease revenue (1) (3) |
|
|
(7,081 |
) |
|
|
(12,236 |
) |
|
|
(9,207 |
) |
|
|
(7,425 |
) |
|
|
(7,501 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Subtotal |
|
|
364,802 |
|
|
|
353,301 |
|
|
|
369,450 |
|
|
|
361,497 |
|
|
|
342,783 |
|
|
|
|
|
|
|
| Excluding Capitalized Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divided by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted interest expense (5) (6) (7) (8) |
|
|
117,410 |
|
|
|
124,819 |
|
|
|
120,322 |
|
|
|
118,043 |
|
|
|
118,029 |
|
|
|
|
|
|
|
| Interest Coverage Ratio |
|
|
3.11 |
|
|
|
2.83 |
|
|
|
3.07 |
|
|
|
3.06 |
|
|
|
2.90 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Including Capitalized Interest |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Divided by: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted interest expense (5) (6) (7) (8) (9) |
|
|
125,488 |
|
|
|
132,584 |
|
|
|
132,641 |
|
|
|
132,982 |
|
|
|
135,738 |
|
|
|
|
|
|
|
| Interest Coverage Ratio |
|
|
2.91 |
|
|
|
2.66 |
|
|
|
2.79 |
|
|
|
2.72 |
|
|
|
2.53 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes the Company’s share of consolidated and unconsolidated joint venture amounts. |
| (2) |
Consists of lease transaction costs which qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions.
|
| (3) |
Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates. |
| (4) |
For additional information, see page 6. |
| (5) |
Excludes the impact of the ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment of $0, $0, $0, $0 and $2,438 for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30,
2014 and March 31, 2014, respectively. |
| (6) |
Excludes consolidated and the Company’s share of unconsolidated joint venture amortization of financing costs of $1,956, $1,987, $1,987, $1,992 and $2,105 for the three months ended March 31, 2015, December 31,
2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively. |
| (7) |
Excludes interest expense of $7,385, $7,271, $7,102, $6,965 and $6,940 for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively, consisting of the
interest expense on the partner loans for the 767 Fifth Avenue (the GM Building) consolidated joint venture, which amount is allocated to the partners within noncontrolling interests in property partnerships. The Company’s share of the interest
expense on its loan to the joint venture eliminates in consolidation. |
| (8) |
Excludes consolidated fair value interest adjustment of $13,017, $12,925, $12,849, $12,753 and $12,674 for the three months ended March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014,
respectively. |
| (9) |
Includes consolidated and the Company’s share of unconsolidated joint venture capitalized interest of $8,078, $7,765, $12,319, $14,939 and $17,709 for the three months ended March 31, 2015, December 31, 2014,
September 30, 2014, June 30, 2014, and March 31, 2014, respectively. |
11
Boston Properties, Inc.
First Quarter 2015
CAPITAL STRUCTURE
Consolidated Debt
(in thousands)
|
|
|
|
|
| |
|
Aggregate Principal
March 31, 2015 |
|
|
|
| Mortgage Notes Payable |
|
$ |
4,163,749 |
|
| Mezzanine Notes Payable |
|
|
306,000 |
|
| Unsecured Line of Credit |
|
|
— |
|
| Unsecured Senior Notes, at face value |
|
|
5,300,000 |
|
|
|
|
|
|
| Total Debt |
|
|
9,769,749 |
|
| Fair Value Adjustment on Mortgage Notes Payable |
|
|
125,371 |
|
| Fair Value Adjustment on Mezzanine Notes Payable |
|
|
3,475 |
|
| Discount on Unsecured Senior Notes |
|
|
(11,899 |
) |
|
|
|
|
|
| Total Consolidated Debt |
|
$ |
9,886,696 |
|
|
|
|
|
|
Boston Properties Limited Partnership Unsecured Senior Notes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Settlement Date |
|
|
6/27/2013 |
|
|
|
4/11/2013 |
|
|
|
6/11/2012 |
|
|
|
11/10/2011 |
|
|
|
11/18/2010 |
|
|
|
4/19/2010 |
|
|
|
10/9/2009 |
|
|
|
Total/Average |
|
| Original Principal Amount |
|
$ |
700,000 |
|
|
$ |
500,000 |
|
|
$ |
1,000,000 |
|
|
$ |
850,000 |
|
|
$ |
850,000 |
|
|
$ |
700,000 |
|
|
$ |
700,000 |
|
|
$ |
5,300,000 |
|
| Principal Amount at Quarter End |
|
$ |
700,000 |
|
|
$ |
500,000 |
|
|
$ |
1,000,000 |
|
|
$ |
850,000 |
|
|
$ |
850,000 |
|
|
$ |
700,000 |
|
|
$ |
700,000 |
|
|
$ |
5,300,000 |
|
| Yield (on issue date) |
|
|
3.916 |
% |
|
|
3.279 |
% |
|
|
3.954 |
% |
|
|
3.853 |
% |
|
|
4.289 |
% |
|
|
5.708 |
% |
|
|
5.967 |
% |
|
|
4.42 |
% |
| Coupon |
|
|
3.800 |
% |
|
|
3.125 |
% |
|
|
3.850 |
% |
|
|
3.700 |
% |
|
|
4.125 |
% |
|
|
5.625 |
% |
|
|
5.875 |
% |
|
|
4.30 |
% |
| Public Offering Price |
|
|
99.694 |
% |
|
|
99.379 |
% |
|
|
99.779 |
% |
|
|
99.767 |
% |
|
|
99.260 |
% |
|
|
99.891 |
% |
|
|
99.931 |
% |
|
|
99.68 |
% |
| Ratings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Moody’s |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
Baa2 (stable |
) |
|
|
|
|
| S&P |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
A- (stable |
) |
|
|
|
|
| Fitch |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
BBB+ (stable |
) |
|
|
|
|
| Maturity Date |
|
|
2/1/2024 |
|
|
|
9/1/2023 |
|
|
|
2/1/2023 |
|
|
|
11/15/2018 |
|
|
|
5/15/2021 |
|
|
|
11/15/2020 |
|
|
|
10/15/2019 |
|
|
|
|
|
| Discount |
|
$ |
1,821 |
|
|
$ |
2,591 |
|
|
$ |
1,697 |
|
|
$ |
1,085 |
|
|
$ |
3,993 |
|
|
$ |
456 |
|
|
$ |
256 |
|
|
$ |
11,899 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Senior Notes, net of discount |
|
$ |
698,179 |
|
|
$ |
497,409 |
|
|
$ |
998,303 |
|
|
$ |
848,915 |
|
|
$ |
846,007 |
|
|
$ |
699,544 |
|
|
$ |
699,744 |
|
|
$ |
5,288,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shares/Units
Outstanding
as of 3/31/2015 |
|
|
Common
Stock
Equivalents |
|
|
Equivalent
Value (1) |
|
| Common Stock |
|
|
153,402 |
|
|
|
153,402 |
(2) |
|
$ |
21,549,913 |
|
| Common Operating Partnership Units |
|
|
18,088 |
|
|
|
18,088 |
(3) |
|
|
2,541,002 |
|
| Series Four Preferred Operating Partnership Units |
|
|
13 |
|
|
|
— |
|
|
|
633 |
(4) |
| 5.25% Series B Cumulative Redeemable Preferred Stock |
|
|
80 |
|
|
|
— |
|
|
|
200,000 |
(5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Equity |
|
|
|
|
|
|
171,490 |
|
|
$ |
24,291,548 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Consolidated Debt |
|
|
|
|
|
|
|
|
|
$ |
9,886,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Consolidated Market Capitalization |
|
|
|
|
|
|
|
|
|
$ |
34,178,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s share of Unconsolidated Joint Venture Debt |
|
|
|
|
|
|
|
|
|
$ |
351,977 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
| Partners’ Share of Consolidated Debt |
|
|
|
|
|
|
|
|
|
$ |
1,174,948 |
|
| Total Adjusted Debt (6) |
|
|
|
|
|
|
|
|
|
$ |
9,063,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Adjusted Market Capitalization (6) |
|
|
|
|
|
|
|
|
|
$ |
33,355,273 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Values based on March 31, 2015 closing price of $140.48 per share of common stock, except for the Series Four Preferred Operating Partnership Units which have been valued at the liquidation preference of $50.00 per
unit (see Note 4 below) and the shares of Series B Cumulative Redeemable Preferred Stock which have been valued at the liquidation preference of $2,500.00 per share (see Note 5 below). |
| (2) |
Includes 67,010 shares of restricted stock. |
| (3) |
Includes 1,845,626 long-term incentive plan units, but excludes an aggregate of 1,154,553 Multi-Year Long-Term Incentive Program Units. |
| (4) |
The Series Four Preferred Units are not convertible into or exchangeable for any common equity of the Company or Operating Partnership, have a per unit liquidation preference of $50.00 and are entitled to receive
quarterly distributions of $0.25 per unit (or an annual rate of 2%). |
| (5) |
On or after March 27, 2018, the Company, at its option, may redeem the Series B Preferred Stock for a cash redemption price of $2,500.00 per share ($25.00 per depositary share), plus all accrued and unpaid
dividends. The Series B Preferred Stock is not redeemable by the holders, has no maturity date and is not convertible into or exchangeable for any other security of the Company or its affiliates. |
| (6) |
For disclosures relating to our definition of Total Adjusted Debt and Total Adjusted Market Capitalization, see page 48. |
12
Boston Properties, Inc.
First Quarter 2015
DEBT ANALYSIS (1)
as of March 31, 2015
Debt Maturities and Principal
Payments
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
2015 |
|
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
Thereafter |
|
|
Total |
|
| Floating Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage Notes Payable |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Unsecured Line of Credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Floating Debt |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
| Fixed Rate Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage Notes Payable |
|
$ |
19,160 |
|
|
$ |
608,879 |
|
|
$ |
2,821,750 |
|
|
$ |
18,633 |
|
|
$ |
19,670 |
|
|
$ |
675,657 |
|
|
$ |
4,163,749 |
|
| Fair Value Adjustment |
|
|
40,547 |
|
|
|
50,632 |
|
|
|
34,192 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
125,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage Notes Payable |
|
|
59,707 |
|
|
|
659,511 |
|
|
|
2,855,942 |
|
|
|
18,633 |
|
|
|
19,670 |
|
|
|
675,657 |
|
|
|
4,289,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mezzanine Notes Payable |
|
|
— |
|
|
|
— |
|
|
|
306,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
306,000 |
|
| Fair Value Adjustment |
|
|
993 |
|
|
|
1,389 |
|
|
|
1,093 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
993 |
|
|
|
1,389 |
|
|
|
307,093 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
309,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Senior Notes, Face Amount |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
850,000 |
|
|
|
700,000 |
|
|
|
3,750,000 |
|
|
|
5,300,000 |
|
| Discount Amortization |
|
|
(1,247 |
) |
|
|
(1,681 |
) |
|
|
(1,749 |
) |
|
|
(1,774 |
) |
|
|
(1,553 |
) |
|
|
(3,895 |
) |
|
|
(11,899 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Senior Notes |
|
|
(1,247 |
) |
|
|
(1,681 |
) |
|
|
(1,749 |
) |
|
|
848,226 |
|
|
|
698,447 |
|
|
|
3,746,105 |
|
|
|
5,288,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Fixed Debt |
|
$ |
59,453 |
|
|
$ |
659,219 |
|
|
$ |
3,161,286 |
|
|
$ |
866,859 |
|
|
$ |
718,117 |
|
|
$ |
4,421,762 |
|
|
$ |
9,886,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Consolidated Debt |
|
$ |
59,453 |
|
|
$ |
659,219 |
|
|
$ |
3,161,286 |
|
|
$ |
866,859 |
|
|
$ |
718,117 |
|
|
$ |
4,421,762 |
|
|
$ |
9,886,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Weighted Average Floating Rate Debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| GAAP Weighted Average Fixed Rate Debt |
|
|
5.80 |
% |
|
|
5.32 |
% |
|
|
4.07 |
% |
|
|
3.89 |
% |
|
|
5.96 |
% |
|
|
4.36 |
% |
|
|
4.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total GAAP Weighted Average Rate |
|
|
5.80 |
% |
|
|
5.32 |
% |
|
|
4.07 |
% |
|
|
3.89 |
% |
|
|
5.96 |
% |
|
|
4.36 |
% |
|
|
4.40 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Stated Weighted Average Rate |
|
|
5.78 |
% |
|
|
6.43 |
% |
|
|
5.76 |
% |
|
|
3.77 |
% |
|
|
5.87 |
% |
|
|
4.29 |
% |
|
|
4.98 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unsecured Debt
Unsecured Line of Credit -
Matures July 26, 2018
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Facility |
|
|
Outstanding
at 3/31/2015 |
|
|
Letters of
Credit |
|
|
Remaining
Capacity
at 3/31/2015 |
|
|
|
|
|
| $ |
1,000,000 |
|
|
$ |
— |
|
|
$ |
16,503 |
|
|
$ |
983,497 |
|
Unsecured and Secured Debt Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
% of Total Debt |
|
|
Stated Weighted
Average Rate |
|
|
GAAP Weighted
Average Rate |
|
|
Weighted Average
Maturity |
|
|
|
|
|
|
| Unsecured Debt |
|
|
53.49 |
% |
|
|
4.34 |
% |
|
|
4.42 |
% |
|
|
6.4 years |
|
| Secured Debt |
|
|
46.51 |
% |
|
|
5.72 |
% |
|
|
4.39 |
% |
|
|
2.9 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Consolidated Debt |
|
|
100.00 |
% |
|
|
4.98 |
% |
|
|
4.40 |
% |
|
|
4.8 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Floating and Fixed Rate Debt Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
% of Total Debt |
|
|
Stated Weighted
Average Rate |
|
|
GAAP Weighted
Average Rate |
|
|
Weighted Average
Maturity |
|
|
|
|
|
|
| Floating Rate Debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— years |
|
| Fixed Rate Debt |
|
|
100.00 |
% |
|
|
4.98 |
% |
|
|
4.40 |
% |
|
|
4.8 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Consolidated Debt |
|
|
100.00 |
% |
|
|
4.98 |
% |
|
|
4.40 |
% |
|
|
4.8 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest Rate Hedging Instruments (2)
(dollars in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Notional Amount |
|
|
Weighted-Average
Ten-Year Swap Rate |
|
|
Effective Date |
|
|
Termination Date |
|
| Forward-starting interest rate swaps |
|
$ |
250,000 |
|
|
|
2.49 |
% |
|
|
September 1, 2016 |
|
|
|
September 1, 2026 |
|
| (1) |
Excludes unconsolidated joint ventures. The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges, effects of hedging transactions and adjustments
required to reflect loans at their fair values upon acquisition or consolidation. |
| (2) |
On February 19, 2015, the Company commenced a planned interest rate hedging program in contemplation of a financing with a target commencement date in September 2016 and maturity in September 2026. During the three
months ended March 31, 2015, the Company entered into five forward-starting interest rate swap contracts, which fixed the ten-year swap rate at a weighted-average rate of approximately 2.49% per annum on notional amounts aggregating $250.0
million. Subsequent to March 31, 2015, the Company entered into two additional contracts with notional amounts aggregating $50.0 million, resulting in a current weighted-average ten-year swap rate for the program of approximately 2.45% per
annum on notional amounts aggregating $300.0 million. |
13
Boston Properties, Inc.
First Quarter 2015
DEBT MATURITIES AND PRINCIPAL PAYMENTS (1)
as of March 31, 2015
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property |
|
2015 |
|
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
Thereafter |
|
|
Total |
|
| 767 Fifth Avenue (The General Motors Building) (60% ownership) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,300,000 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
1,300,000 |
(2) |
| 599 Lexington Avenue |
|
|
— |
|
|
|
— |
|
|
|
750,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
750,000 |
|
| 601 Lexington Avenue (55% ownership) |
|
|
8,955 |
|
|
|
12,447 |
|
|
|
13,051 |
|
|
|
13,684 |
|
|
|
14,349 |
|
|
|
645,531 |
|
|
|
708,017 |
|
| John Hancock Tower and Garage |
|
|
— |
|
|
|
— |
|
|
|
640,500 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
640,500 |
(2) |
| Embarcadero Center Four |
|
|
4,378 |
|
|
|
348,886 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
353,264 |
|
| Fountain Square (50% ownership) |
|
|
— |
|
|
|
211,250 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
211,250 |
(2) |
| 505 9th Street (50% ownership) |
|
|
1,953 |
|
|
|
2,737 |
|
|
|
113,596 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
118,286 |
|
| New Dominion Technology Park, Building One |
|
|
1,264 |
|
|
|
2,672 |
|
|
|
2,878 |
|
|
|
3,100 |
|
|
|
3,340 |
|
|
|
26,503 |
|
|
|
39,757 |
|
| Kingstowne Two and Retail |
|
|
1,474 |
|
|
|
29,277 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
30,751 |
(2) |
| University Place |
|
|
1,136 |
|
|
|
1,610 |
|
|
|
1,725 |
|
|
|
1,849 |
|
|
|
1,981 |
|
|
|
3,623 |
|
|
|
11,924 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19,160 |
|
|
|
608,879 |
|
|
|
2,821,750 |
|
|
|
18,633 |
|
|
|
19,670 |
|
|
|
675,657 |
|
|
|
4,163,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Aggregate Fair Value Adjustments |
|
|
40,547 |
|
|
|
50,632 |
|
|
|
34,192 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
125,371 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
59,707 |
|
|
|
659,511 |
|
|
|
2,855,942 |
|
|
|
18,633 |
|
|
|
19,670 |
|
|
|
675,657 |
|
|
|
4,289,120 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mezzanine Notes Payable (associated with 767 Fifth Avenue (The General Motors Building))(60% ownership) |
|
|
— |
|
|
|
— |
|
|
|
306,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
306,000 |
|
| Fair Value Adjustment |
|
|
993 |
|
|
|
1,389 |
|
|
|
1,093 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
993 |
|
|
|
1,389 |
|
|
|
307,093 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
309,475 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Senior Notes, Face Amount |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
850,000 |
|
|
|
700,000 |
|
|
|
3,750,000 |
|
|
|
5,300,000 |
|
| Aggregate Discount Amortization |
|
|
(1,247 |
) |
|
|
(1,681 |
) |
|
|
(1,749 |
) |
|
|
(1,774 |
) |
|
|
(1,553 |
) |
|
|
(3,895 |
) |
|
|
(11,899 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1,247 |
) |
|
|
(1,681 |
) |
|
|
(1,749 |
) |
|
|
848,226 |
|
|
|
698,447 |
|
|
|
3,746,105 |
|
|
|
5,288,101 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unsecured Line of Credit |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
59,453 |
|
|
$ |
659,219 |
|
|
$ |
3,161,286 |
|
|
$ |
866,859 |
|
|
$ |
718,117 |
|
|
$ |
4,421,762 |
|
|
$ |
9,886,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % of Total Consolidated Debt |
|
|
0.60 |
% |
|
|
6.67 |
% |
|
|
31.98 |
% |
|
|
8.77 |
% |
|
|
7.26 |
% |
|
|
44.72 |
% |
|
|
100.00 |
% |
| Balloon Payments |
|
$ |
— |
|
|
$ |
583,782 |
|
|
$ |
3,107,619 |
|
|
$ |
850,000 |
|
|
$ |
700,000 |
|
|
$ |
4,383,554 |
|
|
$ |
9,624,955 |
|
| Scheduled Principal Amortization |
|
$ |
19,160 |
|
|
$ |
25,097 |
|
|
$ |
20,131 |
|
|
$ |
18,633 |
|
|
$ |
19,670 |
|
|
$ |
42,103 |
|
|
$ |
144,794 |
|
| (1) |
Excludes unconsolidated joint ventures. For information on our unconsolidated joint venture debt, see page 16. |
| (2) |
This property has a fair value adjustment which is aggregated on the Aggregate Fair Value Adjustments line. |
14
Boston Properties, Inc.
First Quarter 2015
Senior Unsecured Debt Covenant Compliance Ratios
(in thousands)
In the fourth quarter of 2002, the Company’s operating partnership (Boston Properties Limited Partnership) received investment grade ratings on its
senior unsecured debt securities and thereafter issued unsecured notes. The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York Mellon Trust Company,
N.A., as trustee, as supplemented, which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to
Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate
ratios in the manner prescribed by the indenture.
This section presents such ratios as of March 31, 2015 to show that the Company’s Operating
Partnership was in compliance with the terms of the indenture, as amended, which has been filed with the SEC. This section also presents certain other indenture-related data which we believe assists investors in the Company’s unsecured debt
securities. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s
financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the indenture.
|
|
|
|
|
|
|
|
|
| |
|
Senior Notes
Issued Prior to
October 9, 2009 |
|
|
Senior Notes
Issued On or After
October 9, 2009 |
|
| |
|
March 31, 2015 |
|
| Total Assets: |
|
|
|
|
|
|
|
|
| Capitalized Property Value (1) |
|
$ |
21,778,547 |
|
|
$ |
22,255,495 |
|
| Cash and Cash Equivalents |
|
|
1,064,396 |
|
|
|
1,064,396 |
|
| Investments in Marketable Securities |
|
|
20,736 |
|
|
|
20,736 |
|
| Undeveloped Land, at Cost (including Joint Venture %) |
|
|
324,469 |
|
|
|
324,469 |
|
| Development in Process, at Cost (including Joint Venture %) |
|
|
941,513 |
|
|
|
941,513 |
|
|
|
|
|
|
|
|
|
|
| Total Assets |
|
$ |
24,129,661 |
|
|
$ |
24,606,609 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unencumbered Assets |
|
$ |
15,485,478 |
|
|
$ |
15,775,615 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Secured Debt (Fixed and Variable) (2) |
|
$ |
4,163,749 |
|
|
$ |
4,163,749 |
|
| Mezzanine Notes Payable (3) |
|
|
306,000 |
|
|
|
306,000 |
|
| Joint Venture Debt |
|
|
351,977 |
|
|
|
351,977 |
|
| Related Party Notes Payable |
|
|
180,000 |
|
|
|
180,000 |
|
| Contingent Liabilities & Letters of Credit |
|
|
21,593 |
|
|
|
21,593 |
|
| Unsecured Debt (4) |
|
|
5,300,000 |
|
|
|
5,300,000 |
|
|
|
|
|
|
|
|
|
|
| Total Outstanding Debt |
|
$ |
10,323,319 |
|
|
$ |
10,323,319 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Consolidated EBITDA: |
|
|
|
|
|
|
|
|
| Income Before Gains on Sales of Real Estate (per Consolidated Income Statement) |
|
$ |
114,086 |
|
|
$ |
114,086 |
|
| Subtract: Income from Unconsolidated Joint Ventures (per Consolidated Income Statement) |
|
|
(14,834 |
) |
|
|
(14,834 |
) |
| Subtract: Gains from Investments in Securities (per Consolidated Income Statement) |
|
|
(393 |
) |
|
|
(393 |
) |
| Add: Interest Expense (per Consolidated Income Statement) |
|
|
108,757 |
|
|
|
108,757 |
|
| Add: Depreciation and Amortization (per Consolidated Income Statement) |
|
|
154,223 |
|
|
|
154,223 |
|
|
|
|
|
|
|
|
|
|
| EBITDA |
|
|
361,839 |
|
|
|
361,839 |
|
| Add: Company share of unconsolidated joint venture EBITDA |
|
|
14,586 |
|
|
|
14,586 |
|
|
|
|
|
|
|
|
|
|
| Consolidated EBITDA |
|
$ |
376,425 |
|
|
$ |
376,425 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Adjusted Interest Expense: |
|
|
|
|
|
|
|
|
| Interest Expense (per Consolidated Income Statement) |
|
$ |
108,757 |
|
|
$ |
108,757 |
|
| Add: Company share of unconsolidated joint venture interest expense |
|
|
4,977 |
|
|
|
4,977 |
|
| Less: Amortization of financing costs |
|
|
(1,956 |
) |
|
|
(1,956 |
) |
| Less: Interest expense funded by construction loan draws |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Adjusted Interest Expense |
|
$ |
111,778 |
|
|
$ |
111,778 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Covenant Ratios and Related Data |
|
Test |
|
Actual |
|
|
Actual |
|
| Total Outstanding Debt/Total Assets |
|
Less than 60% |
|
|
42.8 |
% |
|
|
42.0 |
% |
| Secured Debt/Total Assets |
|
Less than 50% |
|
|
20.0 |
% |
|
|
19.6 |
% |
| Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) |
|
Greater than 1.50x |
|
|
3.37 |
|
|
|
3.37 |
|
| Unencumbered Assets/ Unsecured Debt |
|
Greater than 150% |
|
|
292.2 |
% |
|
|
297.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
| Unencumbered Consolidated EBITDA |
|
|
|
$ |
241,830 |
|
|
$ |
241,830 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unencumbered Interest Coverage (Unencumbered Consolidated EBITDA to Unsecured Interest Expense) |
|
|
|
|
4.19 |
|
|
|
4.19 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % of Unencumbered Consolidated EBITDA to Consolidated EBITDA |
|
|
|
|
64.2 |
% |
|
|
64.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| # of unencumbered properties |
|
|
|
|
138 |
|
|
|
138 |
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For senior notes issued prior to October 9, 2009, Capitalized Property Value is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.5% rate for CBD properties and a
9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. Capitalized Property Value for senior notes issued on or after October 9, 2009 is determined for each property and is the greater of
(A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP. |
| (2) |
Excludes aggregate fair value adjustment of $125,371. |
| (3) |
Excludes aggregate fair value adjustment of $3,475. |
| (4) |
Excludes aggregate debt discount of $11,899. |
15
Boston Properties, Inc.
First Quarter 2015
UNCONSOLIDATED JOINT VENTURE DEBT ANALYSIS (*)
Debt Maturities and Principal
Payments by Property
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property |
|
2015 |
|
|
2016 |
|
|
2017 |
|
|
2018 |
|
|
2019 |
|
|
Thereafter |
|
|
Total |
|
|
|
|
|
|
|
|
|
| Metropolitan Square (51%) |
|
$ |
949 |
|
|
$ |
1,332 |
|
|
$ |
1,410 |
|
|
$ |
1,493 |
|
|
$ |
1,582 |
|
|
$ |
80,327 |
|
|
$ |
87,093 |
|
| 540 Madison Avenue (60%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
72,000 |
|
|
|
— |
|
|
|
— |
|
|
|
72,000 |
|
| Market Square North (50%) |
|
|
788 |
|
|
|
1,094 |
|
|
|
1,148 |
|
|
|
1,205 |
|
|
|
1,265 |
|
|
|
58,090 |
|
|
|
63,590 |
|
| 901 New York Avenue (25%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
56,250 |
|
|
|
56,250 |
|
| 500 North Capitol Street, N.W. (30%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,500 |
|
|
|
31,500 |
|
| Annapolis Junction Building One (50%) |
|
|
210 |
|
|
|
279 |
|
|
|
279 |
|
|
|
19,519 |
|
|
|
— |
|
|
|
— |
|
|
|
20,287 |
(1) |
| Annapolis Junction Building Six (50%) |
|
|
6,837 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,837 |
|
| Annapolis Junction Building Seven (50%) |
|
|
— |
|
|
|
7,600 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,600 |
(2) |
| Annapolis Junction Building Eight (50%) |
|
|
— |
|
|
|
— |
|
|
|
6,820 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,820 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
8,784 |
|
|
$ |
10,305 |
|
|
$ |
9,657 |
|
|
$ |
94,217 |
|
|
$ |
2,847 |
|
|
$ |
226,167 |
|
|
$ |
351,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP Weighted Average Rate |
|
|
3.12 |
% |
|
|
3.08 |
% |
|
|
2.98 |
% |
|
|
1.99 |
% |
|
|
5.41 |
% |
|
|
4.82 |
% |
|
|
3.93 |
% |
|
|
|
|
|
|
|
|
| % of Total Debt |
|
|
2.49 |
% |
|
|
2.93 |
% |
|
|
2.74 |
% |
|
|
26.77 |
% |
|
|
0.81 |
% |
|
|
64.26 |
% |
|
|
100.00 |
% |
|
|
|
|
|
|
|
|
| Balloon Payments |
|
$ |
6,837 |
|
|
$ |
7,600 |
|
|
$ |
6,820 |
|
|
$ |
91,519 |
|
|
$ |
— |
|
|
$ |
221,044 |
|
|
$ |
333,820 |
|
| Scheduled Amortization |
|
$ |
1,947 |
|
|
$ |
2,705 |
|
|
$ |
2,837 |
|
|
$ |
2,698 |
|
|
$ |
2,847 |
|
|
$ |
5,123 |
|
|
$ |
18,157 |
|
Floating and Fixed Rate Debt Analysis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
% of Total Debt |
|
|
Stated
Weighted
Average Rate |
|
|
GAAP
Weighted
Average Rate |
|
|
Weighted Average
Maturity |
|
|
|
|
|
|
| Floating Rate Debt |
|
|
32.26 |
% |
|
|
1.77 |
% |
|
|
1.98 |
% |
|
|
2.8 years |
|
| Fixed Rate Debt |
|
|
67.74 |
% |
|
|
4.79 |
% |
|
|
4.85 |
% |
|
|
6.7 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Debt |
|
|
100.00 |
% |
|
|
3.82 |
% |
|
|
3.93 |
% |
|
|
5.5 years |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (*) |
All amounts represent the Company’s share. |
| (1) |
Loan has one, three-year extension option, subject to certain conditions. |
| (2) |
Loan has two, one-year extension options, subject to certain conditions. |
16
Boston Properties, Inc.
First Quarter 2015
UNCONSOLIDATED JOINT VENTURES
Balance Sheet Information
(unaudited and in
thousands)
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
540 Madison
Avenue |
|
|
Market
Square
North |
|
|
Metropolitan
Square |
|
|
901 New York
Avenue |
|
|
Wisconsin
Place (1) |
|
|
Annapolis
Junction (2) |
|
|
500 North
Capitol
Street,
N.W. |
|
|
North Station
(Phase 1 -
Air Rights) |
|
|
1001 6th Street
(formerly
501 K Street) |
|
|
Total
Unconsolidated
Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Equity (3) (4) |
|
$ |
67,809 |
|
|
$ |
(7,345 |
) |
|
$ |
8,850 |
|
|
$ |
(12,907 |
) |
|
$ |
45,283 |
|
|
$ |
25,935 |
|
|
$ |
(2,493 |
) |
|
$ |
5,576 |
|
|
$ |
42,735 |
|
|
$ |
173,443 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage/Construction loans payable (3) |
|
$ |
72,000 |
|
|
$ |
63,590 |
|
|
$ |
87,093 |
|
|
$ |
56,250 |
|
|
$ |
— |
|
|
$ |
41,544 |
|
|
$ |
31,500 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
351,977 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s nominal ownership percentage |
|
|
60.00 |
% |
|
|
50.00 |
% |
|
|
51.00 |
% |
|
|
25.00 |
% |
|
|
33.33 |
% |
|
|
50.00 |
% |
|
|
30.00 |
% |
|
|
50.00 |
% |
|
|
50.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Results of Operations
(unaudited and in thousands)
for the three months ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
540 Madison
Avenue |
|
|
Market
Square
North |
|
|
Metropolitan
Square |
|
|
901 New York
Avenue |
|
|
Wisconsin
Place (1) |
|
|
Annapolis
Junction (2) |
|
|
500 North
Capitol
Street,
N.W. |
|
|
North Station
(Phase 1 -
Air Rights) |
|
|
1001 6th Street
(formerly
501 K Street) |
|
|
Total
Unconsolidated
Joint Ventures |
|
| REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental (5) |
|
$ |
6,995 |
|
|
$ |
6,069 |
|
|
$ |
8,278 |
|
|
$ |
7,673 |
|
|
$ |
1,338 |
|
|
$ |
3,844 |
|
|
$ |
3,645 |
|
|
$ |
— |
|
|
$ |
134 |
|
|
$ |
37,976 |
|
| Straight-line rent |
|
|
14 |
|
|
|
(78 |
) |
|
|
(55 |
) |
|
|
1,538 |
|
|
|
— |
|
|
|
(18 |
) |
|
|
226 |
|
|
|
— |
|
|
|
— |
|
|
|
1,627 |
|
| Fair value lease revenue |
|
|
(71 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(71 |
) |
| Termination Income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
6,938 |
|
|
|
5,991 |
|
|
|
8,223 |
|
|
|
9,211 |
|
|
|
1,338 |
|
|
|
3,826 |
|
|
|
3,871 |
|
|
|
— |
|
|
|
134 |
|
|
|
39,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
3,524 |
|
|
|
2,372 |
|
|
|
3,433 |
|
|
|
3,316 |
|
|
|
630 |
|
|
|
1,463 |
|
|
|
1,224 |
|
|
|
— |
|
|
|
313 |
|
|
|
16,275 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME |
|
|
3,414 |
|
|
|
3,619 |
|
|
|
4,790 |
|
|
|
5,895 |
|
|
|
708 |
|
|
|
2,363 |
|
|
|
2,647 |
|
|
|
— |
|
|
|
(179 |
) |
|
|
23,257 |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest |
|
|
552 |
|
|
|
1,565 |
|
|
|
2,483 |
|
|
|
2,076 |
|
|
|
— |
|
|
|
200 |
|
|
|
1,104 |
|
|
|
— |
|
|
|
— |
|
|
|
7,980 |
|
| Depreciation and amortization |
|
|
1,869 |
|
|
|
924 |
|
|
|
1,838 |
|
|
|
1,422 |
|
|
|
1,383 |
|
|
|
765 |
|
|
|
870 |
|
|
|
— |
|
|
|
— |
|
|
|
9,071 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SUBTOTAL |
|
|
2,421 |
|
|
|
2,489 |
|
|
|
4,321 |
|
|
|
3,498 |
|
|
|
1,383 |
|
|
|
965 |
|
|
|
1,974 |
|
|
|
— |
|
|
|
— |
|
|
|
17,051 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME/(LOSS) |
|
$ |
993 |
|
|
$ |
1,130 |
|
|
$ |
469 |
|
|
$ |
2,397 |
|
|
$ |
(675 |
) |
|
$ |
1,398 |
|
|
$ |
673 |
|
|
$ |
— |
|
|
$ |
(179 |
) |
|
$ |
6,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s share of net income/(loss) |
|
$ |
596 |
|
|
$ |
565 |
|
|
$ |
239 |
|
|
$ |
12,656 |
(6) |
|
$ |
(225 |
) |
|
$ |
699 |
|
|
$ |
202 |
|
|
$ |
— |
|
|
$ |
(90 |
) |
|
|
14,642 |
|
|
|
|
|
|
|
|
|
|
|
|
| Basis differential (7) |
|
|
182 |
|
|
|
(2 |
) |
|
|
17 |
|
|
|
(6 |
) |
|
|
(7 |
) |
|
|
(1 |
) |
|
|
9 |
|
|
|
— |
|
|
|
— |
|
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income/(loss) from unconsolidated joint ventures |
|
$ |
778 |
|
|
$ |
563 |
|
|
$ |
256 |
|
|
$ |
12,650 |
(6) |
|
$ |
(232 |
) |
|
$ |
698 |
|
|
$ |
211 |
|
|
$ |
— |
|
|
$ |
(90 |
) |
|
$ |
14,834 |
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s share of depreciation & amortization |
|
|
996 |
|
|
|
469 |
|
|
|
948 |
|
|
|
(8,661 |
) (6) |
|
|
466 |
|
|
|
387 |
|
|
|
263 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,132 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s share of Funds from Operations (FFO) |
|
$ |
1,774 |
|
|
$ |
1,032 |
|
|
$ |
1,204 |
|
|
$ |
3,989 |
|
|
$ |
234 |
|
|
$ |
1,085 |
|
|
$ |
474 |
|
|
$ |
— |
|
|
$ |
(90 |
) |
|
$ |
9,702 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s share of net operating income/(loss) (5) |
|
$ |
2,056 |
|
|
$ |
1,810 |
|
|
$ |
2,443 |
|
|
$ |
6,155 |
(6) |
|
$ |
236 |
|
|
$ |
1,182 |
|
|
$ |
794 |
|
|
$ |
— |
|
|
$ |
(90 |
) |
|
$ |
14,586 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Represents the Company’s interest in the joint venture entity that owns the land, parking garage and infrastructure. The Company’s entity that owns 100% of the office component of the project is consolidated
within the accounts of the Company. |
| (2) |
Annapolis Junction includes two properties in service, two properties in development and two undeveloped land parcels. |
| (3) |
Represents the Company’s share. |
| (4) |
As of December 31, 2014, certain investments with deficit balances aggregating ($22,745) have been reflected within Other Liabilities on the Company’s Consolidated Balance Sheet. |
| (5) |
Includes management services income. |
| (6) |
Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement. On December 17, 2014, 901 New York Avenue’s $170.0
million mortgage loan was refinanced with a new 10-year mortgage loan totaling $225.0 million (the Company’s share being 25%). As a result of the achievement of preferred returns, the Company was distributed $24.5 million or 49% of the excess
loan proceeds in Q1 2015. |
| (7) |
Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures. |
17
Boston Properties, Inc.
First Quarter 2015
CONSOLIDATED JOINT VENTURES
(unaudited and in thousands)
Balance Sheets
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s nominal ownership percentage |
|
|
60.00 |
% |
|
|
55.00 |
% |
|
|
95.00 |
% |
|
|
50.00 |
% |
|
|
50.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Norges Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
767 Fifth Avenue
(The GM Building) |
|
|
Times Square Tower
601 Lexington Avenue
100 Federal Street
Atlantic Wharf Office |
|
|
Salesforce
Tower |
|
|
Fountain
Square |
|
|
505 9th
Street |
|
|
Total
Consolidated
Joint Ventures |
|
|
|
|
|
|
|
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Real estate, net |
|
$ |
3,531,726 |
|
|
$ |
2,277,196 |
|
|
$ |
382,128 |
|
|
$ |
364,180 |
|
|
$ |
106,939 |
|
|
$ |
6,662,169 |
|
| Cash and cash held in escrows |
|
|
77,924 |
|
|
|
138,821 |
|
|
|
8,986 |
|
|
|
17,598 |
|
|
|
4,028 |
|
|
|
247,357 |
|
| Other assets |
|
|
117,616 |
|
|
|
168,257 |
|
|
|
— |
|
|
|
9,444 |
|
|
|
9,092 |
|
|
|
304,409 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
3,727,266 |
|
|
$ |
2,584,274 |
|
|
$ |
391,114 |
|
|
$ |
391,222 |
|
|
$ |
120,059 |
|
|
$ |
7,213,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgage notes payable |
|
$ |
1,410,406 |
|
|
$ |
708,017 |
|
|
$ |
— |
|
|
$ |
218,490 |
|
|
$ |
118,286 |
|
|
$ |
2,455,199 |
|
| Mezzanine notes payable |
|
|
309,474 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
309,474 |
|
| Related party notes payable |
|
|
180,000 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
180,000 |
|
| Accrued interest on related party notes |
|
|
96,029 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
96,029 |
|
| Other liabilities |
|
|
192,873 |
|
|
|
67,317 |
|
|
|
32,155 |
|
|
|
10,212 |
|
|
|
5,496 |
|
|
|
308,053 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
2,188,782 |
|
|
|
775,334 |
|
|
|
32,155 |
|
|
|
228,702 |
|
|
|
123,782 |
|
|
|
3,348,755 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Boston Properties |
|
|
1,088,932 |
(1) |
|
|
672,241 |
|
|
|
342,384 |
|
|
|
57,000 |
|
|
|
(322 |
) |
|
|
2,160,235 |
|
| Redeemable interest in property partnership |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
105,520 |
|
|
|
— |
|
|
|
105,520 |
|
| Noncontrolling interests |
|
|
449,552 |
|
|
|
1,136,699 |
|
|
|
16,575 |
|
|
|
— |
|
|
|
(3,401 |
) |
|
|
1,599,425 |
(2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
1,538,484 |
|
|
|
1,808,940 |
|
|
|
358,959 |
|
|
|
162,520 |
|
|
|
(3,723 |
) |
|
|
3,865,180 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
3,727,266 |
|
|
$ |
2,584,274 |
|
|
$ |
391,114 |
|
|
$ |
391,222 |
|
|
$ |
120,059 |
|
|
$ |
7,213,935 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Statements
for the three months ended
March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP’s nominal ownership percentage |
|
|
60.00 |
% |
|
|
55.00 |
% |
|
|
95.00 |
% |
|
|
50.00 |
% |
|
|
50.00 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
Norges Joint Ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
767 Fifth Avenue
(The GM Building) |
|
|
Times Square Tower
601 Lexington Avenue
100 Federal Street
Atlantic Wharf Office |
|
|
Salesforce
Tower |
|
|
Fountain
Square |
|
|
505 9th
Street |
|
|
Total
Consolidated
Joint Ventures |
|
| REVENUE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental |
|
$ |
64,472 |
|
|
$ |
92,330 |
|
|
$ |
— |
|
|
$ |
9,144 |
|
|
$ |
5,964 |
|
|
$ |
171,910 |
|
| Straight-line rent |
|
|
7,691 |
|
|
|
1,887 |
|
|
|
— |
|
|
|
448 |
|
|
|
(44 |
) |
|
|
9,982 |
|
| Fair value lease revenue |
|
|
6,112 |
|
|
|
954 |
|
|
|
— |
|
|
|
(56 |
) |
|
|
— |
|
|
|
7,010 |
|
| Parking and other |
|
|
925 |
|
|
|
1,414 |
|
|
|
— |
|
|
|
42 |
|
|
|
605 |
|
|
|
2,986 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
79,200 |
|
|
|
96,585 |
|
|
|
— |
|
|
|
9,578 |
|
|
|
6,525 |
|
|
|
191,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating |
|
|
25,293 |
|
|
|
32,513 |
|
|
|
— |
|
|
|
3,110 |
|
|
|
2,400 |
|
|
|
63,316 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET OPERATING INCOME |
|
|
53,907 |
|
|
|
64,072 |
|
|
|
— |
|
|
|
6,468 |
|
|
|
4,125 |
|
|
|
128,572 |
|
|
|
|
|
|
|
|
| Management services income |
|
|
(341 |
) |
|
|
(437 |
) |
|
|
— |
|
|
|
(2 |
) |
|
|
— |
|
|
|
(780 |
) |
| Interest and other income |
|
|
(11 |
) |
|
|
(277 |
) |
|
|
— |
|
|
|
(1 |
) |
|
|
— |
|
|
|
(289 |
) |
| Interest expense |
|
|
23,535 |
|
|
|
8,504 |
|
|
|
— |
|
|
|
3,053 |
|
|
|
1,745 |
|
|
|
36,837 |
|
| Interest expense - partner notes |
|
|
7,385 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,385 |
|
| Fair value adjustment to interest expense |
|
|
(10,998 |
) |
|
|
— |
|
|
|
— |
|
|
|
(1,643 |
) |
|
|
— |
|
|
|
(12,641 |
) |
| Depreciation and amortization |
|
|
28,782 |
|
|
|
20,856 |
|
|
|
— |
|
|
|
4,708 |
|
|
|
874 |
|
|
|
55,220 |
|
| Other |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| SUBTOTAL |
|
|
48,352 |
|
|
|
28,646 |
|
|
|
— |
|
|
|
6,115 |
|
|
|
2,619 |
|
|
|
85,732 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NET INCOME/(LOSS) |
|
$ |
5,555 |
|
|
$ |
35,426 |
|
|
$ |
— |
|
|
$ |
353 |
|
|
$ |
1,506 |
|
|
$ |
42,840 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of partners’ noncontrolling interest (NCI): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add back depreciation & amortization - BXP basis difference |
|
$ |
8 |
|
|
$ |
23 |
|
|
$ |
— |
|
|
$ |
27 |
|
|
$ |
30 |
|
|
$ |
88 |
|
| Special allocation - BXP basis |
|
|
— |
|
|
|
(101 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(101 |
) |
| Add back partners’ share of partner loan interest |
|
|
7,385 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
7,385 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Partners’ net income/(loss) before interest allocation |
|
|
12,948 |
|
|
|
35,348 |
|
|
|
— |
|
|
|
380 |
|
|
|
1,536 |
|
|
|
50,212 |
|
|
|
|
|
|
|
|
| Partners’ NCI share of net income before interest allocation |
|
|
5,179 |
|
|
|
15,906 |
|
|
|
— |
|
|
|
190 |
|
|
|
768 |
|
|
|
22,043 |
|
| Partners’ share of partner loan interest |
|
|
(7,385 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(7,385 |
) |
| Allocation of management and other fees to non-controlling partner |
|
|
(580 |
) |
|
|
(808 |
) |
|
|
— |
|
|
|
(115 |
) |
|
|
(100 |
) |
|
|
(1,603 |
) |
| Accretion and adjustments |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,153 |
(3) |
|
|
— |
|
|
|
2,153 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Partners’ NCI |
|
$ |
(2,786 |
) |
|
$ |
15,098 |
|
|
$ |
— |
|
|
$ |
2,228 |
|
|
$ |
668 |
|
|
$ |
15,208 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of partners’ share of FFO: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net income/(loss) |
|
$ |
5,555 |
|
|
$ |
35,426 |
|
|
$ |
— |
|
|
$ |
353 |
|
|
$ |
1,506 |
|
|
$ |
42,840 |
|
| Special allocation - BXP basis |
|
|
— |
|
|
|
(101 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(101 |
) |
| Add back depreciation & amortization |
|
|
28,782 |
|
|
|
20,856 |
|
|
|
— |
|
|
|
4,708 |
|
|
|
874 |
|
|
|
55,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Entity FFO |
|
|
34,337 |
|
|
|
56,181 |
|
|
|
— |
|
|
|
5,061 |
|
|
|
2,380 |
|
|
|
97,959 |
|
|
|
|
|
|
|
|
| Partners’ share of net income/(loss) |
|
|
2,223 |
|
|
|
15,941 |
|
|
|
— |
|
|
|
190 |
|
|
|
753 |
|
|
|
19,107 |
|
| Partners’ share of partner loan interest not in partner’s share of entity FFO |
|
|
(4,432 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(4,432 |
) |
| Allocation of management and other fees to non-controlling partner |
|
|
(580 |
) |
|
|
(808 |
) |
|
|
— |
|
|
|
(115 |
) |
|
|
(100 |
) |
|
|
(1,603 |
) |
| Partners’ share of depreciation and amortization |
|
|
11,513 |
|
|
|
9,385 |
|
|
|
— |
|
|
|
— |
|
|
|
437 |
|
|
|
21,335 |
|
| Accretion and adjustments |
|
|
— |
|
|
|
(45 |
) |
|
|
— |
|
|
|
2,153 |
(3) |
|
|
— |
|
|
|
2,108 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Partners’ share FFO |
|
$ |
8,724 |
|
|
$ |
24,473 |
|
|
$ |
— |
|
|
$ |
2,228 |
|
|
$ |
1,090 |
|
|
$ |
36,515 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Reconciliation of BXP share of FFO |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP share of net income/(loss) adjusted for partners’ NCI |
|
|
8,341 |
|
|
|
20,328 |
|
|
|
— |
|
|
|
(1,875 |
) (3) |
|
|
839 |
|
|
|
27,632 |
|
| Depreciation & amortization - BXP basis difference |
|
|
8 |
|
|
|
23 |
|
|
|
— |
|
|
|
27 |
|
|
|
30 |
|
|
|
88 |
|
| Other adjustment (4) |
|
|
91 |
|
|
|
18 |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
|
|
117 |
|
| BXP share of depreciation & amortization |
|
|
17,264 |
|
|
|
11,458 |
|
|
|
— |
|
|
|
4,681 |
(3) |
|
|
422 |
|
|
|
33,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| BXP share of FFO |
|
$ |
25,704 |
|
|
$ |
31,827 |
|
|
$ |
— |
|
|
$ |
2,841 |
|
|
$ |
1,291 |
|
|
$ |
61,662 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Unearned portion of capitalized fees (4) |
|
$ |
268 |
|
|
$ |
5,561 |
|
|
$ |
— |
|
|
$ |
5 |
|
|
$ |
— |
|
|
$ |
5,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
BXP equity adjusted for related party notes and accrued interest that are allocated to our partners through NCI. |
| (2) |
Amount excludes preferred shareholders capital of approximately $0.1 million. |
| (3) |
The allocation of net income and FFO to the NCI partner reflects the accretion to their redemption value, which redemption is scheduled to occur in Q1 2016. |
| (4) |
Capitalized fees are eliminated in consolidation and recognized in FFO over the life of the asset as depreciation and amortization are added back to the Company’s net income. |
18
Boston Properties, Inc.
First Quarter 2015
PORTFOLIO OVERVIEW
Rentable Square Footage and
Percentage of Combined Net Operating Income of In-Service Properties by Location and Type of Property for the Quarter Ended March 31, 2015 (1) (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Geographic Area |
|
Square Feet
Office (3) |
|
|
% of NOI
Office (4) |
|
|
Square Feet
Office/
Technical |
|
|
% of NOI
Office/
Technical (4) |
|
|
Square Feet
Total (3) |
|
|
Square Feet
% of Total |
|
|
% of NOI
Residential (4) |
|
|
% of NOI
Hotel (4) |
|
|
% of NOI
Total (4) |
|
|
|
|
|
|
|
|
|
|
|
| Boston |
|
|
13,267,352 |
(5) |
|
|
24.8 |
% |
|
|
392,530 |
|
|
|
1.1 |
% |
|
|
13,659,882 |
(5) |
|
|
33.0 |
% |
|
|
0.2 |
% |
|
|
0.4 |
% |
|
|
26.5 |
% |
| New York |
|
|
11,562,583 |
(5) |
|
|
40.9 |
% |
|
|
— |
|
|
|
— |
|
|
|
11,562,583 |
(5) |
|
|
27.9 |
% |
|
|
— |
|
|
|
— |
|
|
|
40.9 |
% |
| San Francisco |
|
|
5,487,302 |
|
|
|
11.2 |
% |
|
|
570,053 |
|
|
|
1.2 |
% |
|
|
6,057,355 |
|
|
|
14.6 |
% |
|
|
— |
|
|
|
— |
|
|
|
12.4 |
% |
| Washington, DC |
|
|
9,386,768 |
(5) |
|
|
19.0 |
% |
|
|
738,829 |
|
|
|
0.5 |
% |
|
|
10,125,597 |
(5) |
|
|
24.5 |
% |
|
|
0.7 |
% |
|
|
— |
|
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
39,704,005 |
|
|
|
95.9 |
% |
|
|
1,701,412 |
|
|
|
2.8 |
% |
|
|
41,405,417 |
|
|
|
100.0 |
% |
|
|
0.9 |
% |
|
|
0.4 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| % of Total |
|
|
95.9 |
% |
|
|
|
|
|
|
4.1 |
% |
|
|
|
|
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of Combined Net Operating Income of In-Service Properties by Location and Type
of Property (2) (4)
|
|
|
|
|
|
|
|
|
|
|
|
|
| Geographic Area |
|
CBD |
|
|
Suburban |
|
|
Total |
|
|
|
|
|
| Boston |
|
|
21.1 |
% |
|
|
5.4 |
% |
|
|
26.5 |
% |
| New York |
|
|
38.6 |
% |
|
|
2.3 |
% |
|
|
40.9 |
% |
| San Francisco |
|
|
9.5 |
% |
|
|
2.9 |
% |
|
|
12.4 |
% |
| Washington, DC |
|
|
9.3 |
% |
|
|
10.9 |
% |
|
|
20.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total |
|
|
78.5 |
% |
|
|
21.5 |
% |
|
|
100.0 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Properties
|
|
|
|
|
|
|
|
|
| Hotel Properties |
|
Number of
Rooms |
|
|
Square
Feet (6) |
|
| Boston Marriott Cambridge, Cambridge, MA |
|
|
433 |
|
|
|
334,260 |
|
|
|
|
|
|
|
|
|
|
| Total Hotel Properties |
|
|
433 |
|
|
|
334,260 |
|
|
|
|
|
|
|
|
|
|
Residential Properties
|
|
|
|
|
|
|
|
|
| Residential Properties |
|
Number of
Units |
|
|
Square
Feet |
|
| The Avant at Reston Town Center, Reston, VA |
|
|
359 |
|
|
|
355,347 |
(7) |
| The Lofts at Atlantic Wharf, Boston, MA |
|
|
86 |
|
|
|
87,097 |
(8) |
|
|
|
|
|
|
|
|
|
| Total Residential Properties |
|
|
445 |
|
|
|
442,444 |
|
|
|
|
|
|
|
|
|
|
Structured Parking
|
|
|
|
|
|
|
|
|
| |
|
Number of
Spaces |
|
|
Square
Feet |
|
|
|
|
| Total Structured Parking |
|
|
43,341 |
|
|
|
14,723,366 |
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of In-Service Properties, see page 49. |
| (2) |
Combined Net Operating Income is a non-GAAP financial measure. For a quantitative reconciliation of Combined NOI to net income available to common shareholders, see page 41. For disclosures relating to our use of
Combined NOI see page 49. |
| (3) |
Includes approximately 2,200,000 square feet of retail space. |
| (4) |
The calculation for percentage of Combined Net Operating Income excludes termination income. |
| (5) |
Includes 100% of the rentable square footage of our In-Service Properties. For disclosures relating to our In-Service Properties, see pages 20-22. |
| (6) |
Includes 4,260 square feet of retail space. |
| (7) |
Includes 26,179 square feet of retail space. |
| (8) |
Includes 9,617 square feet of retail space. |
19
Boston Properties, Inc.
First Quarter 2015
In-Service Property Listing
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sub Market |
|
Number of
Buildings |
|
Square Feet |
|
|
Leased % |
|
|
Annualized
Revenue
Per
Leased SF (1) |
|
|
Encumbered
with secured
debt
(Y/N) |
|
Central
Business
District (CBD) or
Suburban (S) |
| Boston |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| John Hancock Tower |
|
CBD Boston MA |
|
1 |
|
|
1,730,102 |
|
|
|
77.0 |
% |
|
$ |
60.88 |
|
|
Y |
|
CBD |
| 100 Federal Street (55% ownership) |
|
CBD Boston MA |
|
1 |
|
|
1,265,411 |
|
|
|
85.6 |
% |
|
|
50.63 |
|
|
N |
|
CBD |
| 800 Boylston Street - The Prudential Center |
|
CBD Boston MA |
|
1 |
|
|
1,227,964 |
|
|
|
92.8 |
% |
|
|
55.52 |
|
|
N |
|
CBD |
| 111 Huntington Avenue - The Prudential Center |
|
CBD Boston MA |
|
1 |
|
|
860,455 |
|
|
|
97.2 |
% |
|
|
61.23 |
|
|
N |
|
CBD |
| Atlantic Wharf Office (55% ownership) |
|
CBD Boston MA |
|
1 |
|
|
793,827 |
|
|
|
100.0 |
% |
|
|
63.16 |
|
|
N |
|
CBD |
| 101 Huntington Avenue - The Prudential Center |
|
CBD Boston MA |
|
1 |
|
|
505,249 |
|
|
|
32.6 |
% |
|
|
47.22 |
|
|
N |
|
CBD |
| The Shops at the Prudential Center |
|
CBD Boston MA |
|
1 |
|
|
501,593 |
|
|
|
94.9 |
% |
|
|
79.12 |
|
|
N |
|
CBD |
| Star Market at the Prudential Center |
|
CBD Boston MA |
|
1 |
|
|
57,235 |
|
|
|
100.0 |
% |
|
|
54.33 |
|
|
N |
|
CBD |
| 255 Main Street (formerly One Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
215,629 |
|
|
|
100.0 |
% |
|
|
54.04 |
|
|
N |
|
CBD |
| 325 Main Street (formerly Three Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
115,061 |
|
|
|
100.0 |
% |
|
|
43.75 |
|
|
N |
|
CBD |
| 90 Broadway (formerly Four Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
222,656 |
|
|
|
97.1 |
% |
|
|
49.59 |
|
|
N |
|
CBD |
| 355 Main Street (formerly Five Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
264,708 |
|
|
|
100.0 |
% |
|
|
61.50 |
|
|
N |
|
CBD |
| 150 Broadway (formerly Eight Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
177,226 |
|
|
|
100.0 |
% |
|
|
46.78 |
|
|
N |
|
CBD |
| 105 Broadway (formerly Ten Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
152,664 |
|
|
|
100.0 |
% |
|
|
45.26 |
|
|
N |
|
CBD |
| 145 Broadway (formerly Eleven Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
79,616 |
|
|
|
100.0 |
% |
|
|
59.29 |
|
|
N |
|
CBD |
| 300 Binney Street (formerly Seventeen Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
195,191 |
|
|
|
100.0 |
% |
|
|
51.38 |
|
|
N |
|
CBD |
| University Place |
|
Mid-Cambridge MA |
|
1 |
|
|
195,282 |
|
|
|
100.0 |
% |
|
|
44.20 |
|
|
Y |
|
CBD |
| Bay Colony Corporate Center |
|
Route 128 Mass Turnpike MA |
|
4 |
|
|
996,317 |
|
|
|
80.5 |
% |
|
|
34.42 |
|
|
N |
|
S |
| Reservoir Place |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
528,885 |
|
|
|
97.6 |
% |
|
|
34.92 |
|
|
N |
|
S |
| Reservoir Place North |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
73,258 |
|
|
|
100.0 |
% |
|
|
31.47 |
|
|
N |
|
S |
| 140 Kendrick Street |
|
Route 128 Mass Turnpike MA |
|
3 |
|
|
380,987 |
|
|
|
99.5 |
% |
|
|
36.60 |
|
|
N |
|
S |
| 230 CityPoint |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
300,573 |
|
|
|
96.9 |
% |
|
|
33.16 |
|
|
N |
|
S |
| 77 CityPoint |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
209,707 |
|
|
|
100.0 |
% |
|
|
45.50 |
|
|
N |
|
S |
| 195 West Street |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
63,500 |
|
|
|
100.0 |
% |
|
|
39.43 |
|
|
N |
|
S |
| 200 West Street |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
256,245 |
|
|
|
96.2 |
% |
|
|
33.25 |
|
|
N |
|
S |
| Weston Corporate Center |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
356,995 |
|
|
|
100.0 |
% |
|
|
48.45 |
|
|
N |
|
S |
| Waltham Weston Corporate Center |
|
Route 128 Mass Turnpike MA |
|
1 |
|
|
306,687 |
|
|
|
79.6 |
% |
|
|
32.94 |
|
|
N |
|
S |
| 32 Hartwell Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
69,154 |
|
|
|
100.0 |
% |
|
|
24.15 |
|
|
N |
|
S |
| 91 Hartwell Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
120,458 |
|
|
|
73.2 |
% |
|
|
25.71 |
|
|
N |
|
S |
| 92 Hayden Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
31,100 |
|
|
|
100.0 |
% |
|
|
40.43 |
|
|
N |
|
S |
| 100 Hayden Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
55,924 |
|
|
|
100.0 |
% |
|
|
40.59 |
|
|
N |
|
S |
| 33 Hayden Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
80,872 |
|
|
|
100.0 |
% |
|
|
41.16 |
|
|
N |
|
S |
| Lexington Office Park |
|
Route 128 Northwest MA |
|
2 |
|
|
166,759 |
|
|
|
84.6 |
% |
|
|
26.90 |
|
|
N |
|
S |
| 191 Spring Street |
|
Route 128 Northwest MA |
|
1 |
|
|
158,900 |
|
|
|
100.0 |
% |
|
|
31.67 |
|
|
N |
|
S |
| 181 Spring Street |
|
Route 128 Northwest MA |
|
1 |
|
|
55,793 |
|
|
|
100.0 |
% |
|
|
30.64 |
|
|
N |
|
S |
| 201 Spring Street |
|
Route 128 Northwest MA |
|
1 |
|
|
106,300 |
|
|
|
100.0 |
% |
|
|
35.70 |
|
|
N |
|
S |
| 40 Shattuck Road |
|
Route 128 Northwest MA |
|
1 |
|
|
121,542 |
|
|
|
73.3 |
% |
|
|
22.70 |
|
|
N |
|
S |
| Quorum Office Park |
|
Route 128 Northwest MA |
|
2 |
|
|
267,527 |
|
|
|
90.0 |
% |
|
|
17.75 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
45 |
|
|
13,267,352 |
|
|
|
88.9 |
% |
|
$ |
49.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office/Technical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 415 Main Street (formerly Seven Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
231,028 |
|
|
|
100.0 |
% |
|
$ |
91.61 |
|
|
N |
|
CBD |
| 250 Binney Street (formerly Fourteen Cambridge Center) |
|
East Cambridge MA |
|
1 |
|
|
67,362 |
|
|
|
100.0 |
% |
|
|
41.40 |
|
|
N |
|
CBD |
| 17 Hartwell Avenue |
|
Route 128 Northwest MA |
|
1 |
|
|
30,000 |
|
|
|
0.0 |
% |
|
|
— |
|
|
N |
|
S |
| 164 Lexington Road |
|
Route 128 Northwest MA |
|
1 |
|
|
64,140 |
|
|
|
0.0 |
% |
|
|
— |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
392,530 |
|
|
|
76.0 |
% |
|
$ |
80.28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Boston: |
|
|
|
49 |
|
|
13,659,882 |
|
|
|
88.5 |
% |
|
$ |
49.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
20
Boston Properties, Inc.
First Quarter 2015
In-Service Property Listing (continued)
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
Sub Market |
|
Number of
Buildings |
|
|
Square Feet |
|
|
Leased % |
|
|
Annualized
Revenue Per
Leased SF (1) |
|
|
Encumbered
with secured
debt (Y/N) |
|
Central
Business
District (CBD) or
Suburban (S) |
|
|
|
|
|
|
|
|
| New York |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
599 Lexington Avenue |
|
Park Avenue NY |
|
|
1 |
|
|
|
1,055,421 |
|
|
|
92.1 |
% |
|
$ |
84.16 |
|
|
Y |
|
CBD |
|
|
601 Lexington Avenue (55% ownership) |
|
Park Avenue NY |
|
|
1 |
|
|
|
1,632,073 |
|
|
|
97.9 |
% |
|
|
93.74 |
|
|
Y |
|
CBD |
|
|
399 Park Avenue |
|
Park Avenue NY |
|
|
1 |
|
|
|
1,710,383 |
|
|
|
98.9 |
% |
|
|
86.59 |
|
|
N |
|
CBD |
|
|
Times Square Tower (55% ownership) |
|
Times Square NY |
|
|
1 |
|
|
|
1,247,454 |
|
|
|
100.0 |
% |
|
|
73.71 |
|
|
N |
|
CBD |
| (2) |
|
250 West 55th Street |
|
Times Square / West Side NY |
|
|
1 |
|
|
|
988,309 |
|
|
|
64.1 |
% |
|
|
84.69 |
|
|
N |
|
CBD |
|
|
767 Fifth Avenue (The GM Building) (60% ownership) |
|
Plaza District NY |
|
|
1 |
|
|
|
1,818,472 |
|
|
|
96.7 |
% |
|
|
147.15 |
|
|
Y |
|
CBD |
|
|
510 Madison Avenue |
|
Fifth/Madison Avenue NY |
|
|
1 |
|
|
|
355,598 |
|
|
|
89.1 |
% |
|
|
116.02 |
|
|
N |
|
CBD |
|
|
540 Madison Avenue (60% ownership) |
|
Fifth/Madison Avenue NY |
|
|
1 |
|
|
|
283,695 |
|
|
|
87.1 |
% |
|
|
105.63 |
|
|
Y |
|
CBD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8 |
|
|
|
9,091,405 |
|
|
|
93.1 |
% |
|
$ |
99.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
101 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
125,468 |
|
|
|
83.9 |
% |
|
$ |
31.44 |
|
|
N |
|
S |
|
|
104 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
102,830 |
|
|
|
87.1 |
% |
|
|
33.23 |
|
|
N |
|
S |
|
|
105 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
69,955 |
|
|
|
62.7 |
% |
|
|
31.65 |
|
|
N |
|
S |
|
|
201 Carnegie Center |
|
Princeton NJ |
|
|
— |
|
|
|
6,500 |
|
|
|
100.0 |
% |
|
|
31.93 |
|
|
N |
|
S |
|
|
202 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
134,068 |
|
|
|
57.1 |
% |
|
|
36.12 |
|
|
N |
|
S |
|
|
206 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
161,763 |
|
|
|
100.0 |
% |
|
|
31.23 |
|
|
N |
|
S |
|
|
210 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
162,372 |
|
|
|
79.3 |
% |
|
|
34.82 |
|
|
N |
|
S |
|
|
211 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
47,025 |
|
|
|
100.0 |
% |
|
|
33.59 |
|
|
N |
|
S |
|
|
212 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
151,547 |
|
|
|
86.1 |
% |
|
|
36.00 |
|
|
N |
|
S |
|
|
214 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
150,774 |
|
|
|
81.3 |
% |
|
|
33.01 |
|
|
N |
|
S |
|
|
302 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
64,926 |
|
|
|
100.0 |
% |
|
|
35.25 |
|
|
N |
|
S |
|
|
502 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
121,460 |
|
|
|
90.0 |
% |
|
|
35.62 |
|
|
N |
|
S |
|
|
504 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
121,990 |
|
|
|
100.0 |
% |
|
|
32.59 |
|
|
N |
|
S |
|
|
506 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
149,110 |
|
|
|
100.0 |
% |
|
|
33.44 |
|
|
N |
|
S |
|
|
508 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
134,433 |
|
|
|
100.0 |
% |
|
|
33.10 |
|
|
N |
|
S |
|
|
510 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
234,160 |
|
|
|
100.0 |
% |
|
|
33.29 |
|
|
N |
|
S |
|
|
701 Carnegie Center |
|
Princeton NJ |
|
|
1 |
|
|
|
120,000 |
|
|
|
100.0 |
% |
|
|
39.04 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
|
|
2,058,381 |
|
|
|
89.7 |
% |
|
$ |
33.89 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One Tower Center |
|
East Brunswick NJ |
|
|
1 |
|
|
|
412,797 |
|
|
|
34.7 |
% |
|
$ |
30.94 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 |
|
|
|
412,797 |
|
|
|
34.7 |
% |
|
$ |
30.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total New York: |
|
|
25 |
|
|
|
11,562,583 |
|
|
|
90.4 |
% |
|
$ |
87.29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| San Francisco |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Embarcadero Center One |
|
CBD San Francisco CA |
|
|
1 |
|
|
|
830,776 |
|
|
|
94.0 |
% |
|
$ |
51.80 |
|
|
N |
|
CBD |
|
|
Embarcadero Center Two |
|
CBD San Francisco CA |
|
|
1 |
|
|
|
779,800 |
|
|
|
95.1 |
% |
|
|
55.57 |
|
|
N |
|
CBD |
|
|
Embarcadero Center Three |
|
CBD San Francisco CA |
|
|
1 |
|
|
|
774,981 |
|
|
|
98.0 |
% |
|
|
47.70 |
|
|
N |
|
CBD |
|
|
Embarcadero Center Four |
|
CBD San Francisco CA |
|
|
1 |
|
|
|
934,407 |
|
|
|
92.0 |
% |
|
|
59.08 |
|
|
Y |
|
CBD |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4 |
|
|
|
3,319,964 |
|
|
|
94.6 |
% |
|
$ |
53.65 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (2) |
|
680 Folsom Street |
|
CBD San Francisco CA |
|
|
2 |
|
|
|
524,793 |
|
|
|
91.8 |
% |
|
$ |
55.28 |
|
|
N |
|
CBD |
|
|
611 Gateway |
|
South San Francisco CA |
|
|
1 |
|
|
|
260,337 |
|
|
|
81.2 |
% |
|
|
37.42 |
|
|
N |
|
S |
|
|
601 and 651 Gateway |
|
South San Francisco CA |
|
|
2 |
|
|
|
506,280 |
|
|
|
99.6 |
% |
|
|
37.49 |
|
|
N |
|
S |
| (3) |
|
North First Business Park |
|
San Jose CA |
|
|
5 |
|
|
|
190,636 |
|
|
|
100.0 |
% |
|
|
15.94 |
|
|
N |
|
S |
|
|
3100-3130 Zanker Road (formerly 3200 Zanker Road) |
|
San Jose CA |
|
|
4 |
|
|
|
543,900 |
|
|
|
19.5 |
% |
|
|
20.55 |
|
|
N |
|
S |
|
|
2440 West El Camino Real |
|
Mountain View CA |
|
|
1 |
|
|
|
141,392 |
|
|
|
100.0 |
% |
|
|
52.29 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15 |
|
|
|
2,167,338 |
|
|
|
75.5 |
% |
|
$ |
40.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office/Technical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mountain View Research Park |
|
Mountain View CA |
|
|
15 |
|
|
|
540,433 |
|
|
|
100.0 |
% |
|
$ |
36.52 |
|
|
N |
|
S |
|
|
453 Ravendale Drive |
|
Mountain View CA |
|
|
1 |
|
|
|
29,620 |
|
|
|
100.0 |
% |
|
|
24.41 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
16 |
|
|
|
570,053 |
|
|
|
100.0 |
% |
|
$ |
35.96 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total San Francisco: |
|
|
|
|
35 |
|
|
|
6,057,355 |
|
|
|
88.3 |
% |
|
$ |
47.68 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Not included in Same Property analysis. |
| (3) |
Property held for redevelopment. |
21
Boston Properties, Inc.
First Quarter 2015
In-Service Property Listing (continued)
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sub Market |
|
Number of
Buildings |
|
|
Square Feet |
|
|
Leased % |
|
|
Annualized
Revenue
Per
Leased SF (1) |
|
|
Encumbered
with secured
debt
(Y/N) |
|
Central
Business
District (CBD) or
Suburban (S) |
|
|
|
|
|
|
|
|
| Washington, DC |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital Gallery |
|
Southwest Washington DC |
|
|
1 |
|
|
|
631,029 |
|
|
|
96.9 |
% |
|
$ |
56.58 |
|
|
N |
|
CBD |
| 500 E Street, S.W. |
|
Southwest Washington DC |
|
|
1 |
|
|
|
251,994 |
|
|
|
100.0 |
% |
|
|
45.55 |
|
|
N |
|
CBD |
| Metropolitan Square (51% ownership) |
|
East End Washington DC |
|
|
1 |
|
|
|
589,288 |
|
|
|
88.6 |
% |
|
|
56.03 |
|
|
Y |
|
CBD |
| Market Square North (50% ownership) |
|
East End Washington DC |
|
|
1 |
|
|
|
406,960 |
|
|
|
94.8 |
% |
|
|
61.43 |
|
|
Y |
|
CBD |
| 505 9th Street, N.W. (50% ownership) |
|
East End Washington DC |
|
|
1 |
|
|
|
321,943 |
|
|
|
100.0 |
% |
|
|
73.88 |
|
|
Y |
|
CBD |
| 901 New York Avenue (25% ownership) |
|
East End Washington DC |
|
|
1 |
|
|
|
539,679 |
|
|
|
100.0 |
% |
|
|
66.53 |
|
|
Y |
|
CBD |
| 2200 Pennsylvania Avenue |
|
CBD Washington DC |
|
|
1 |
|
|
|
458,831 |
|
|
|
98.1 |
% |
|
|
84.98 |
|
|
N |
|
CBD |
| 1333 New Hampshire Avenue |
|
CBD Washington DC |
|
|
1 |
|
|
|
315,371 |
|
|
|
93.1 |
% |
|
|
53.82 |
|
|
N |
|
CBD |
| 1330 Connecticut Avenue |
|
CBD Washington DC |
|
|
1 |
|
|
|
252,136 |
|
|
|
100.0 |
% |
|
|
59.87 |
|
|
N |
|
CBD |
| Sumner Square |
|
CBD Washington DC |
|
|
1 |
|
|
|
208,892 |
|
|
|
98.5 |
% |
|
|
48.25 |
|
|
N |
|
CBD |
| 500 North Capitol Street, N.W. (30% ownership) |
|
Capitol Hill Washington DC |
|
|
1 |
|
|
|
230,859 |
|
|
|
91.1 |
% |
|
|
65.40 |
|
|
Y |
|
CBD |
| Annapolis Junction Building One (50% ownership) |
|
Anne Arundel County MD |
|
|
1 |
|
|
|
117,599 |
|
|
|
70.7 |
% |
|
|
144.25 |
|
|
Y |
|
S |
| Annapolis Junction Building Six (50% ownership) |
|
Anne Arundel County MD |
|
|
1 |
|
|
|
119,339 |
|
|
|
48.9 |
% |
|
|
29.02 |
|
|
Y |
|
S |
| 2600 Tower Oaks Boulevard |
|
Montgomery County MD |
|
|
1 |
|
|
|
179,369 |
|
|
|
63.2 |
% |
|
|
37.04 |
|
|
N |
|
S |
| Wisconsin Place Office |
|
Montgomery County MD |
|
|
1 |
|
|
|
299,186 |
|
|
|
100.0 |
% |
|
|
52.57 |
|
|
N |
|
S |
| Fountain Square (50% ownership) |
|
Fairfax County VA |
|
|
2 |
|
|
|
521,707 |
|
|
|
97.8 |
% |
|
|
45.24 |
|
|
Y |
|
S |
| Fountain Square Retail (50% ownership) |
|
Fairfax County VA |
|
|
1 |
|
|
|
234,349 |
|
|
|
95.4 |
% |
|
|
54.70 |
|
|
Y |
|
S |
| Democracy Tower |
|
Fairfax County VA |
|
|
1 |
|
|
|
259,441 |
|
|
|
100.0 |
% |
|
|
56.58 |
|
|
N |
|
S |
| Kingstowne One |
|
Fairfax County VA |
|
|
1 |
|
|
|
151,483 |
|
|
|
88.6 |
% |
|
|
39.86 |
|
|
N |
|
S |
| Kingstowne Two |
|
Fairfax County VA |
|
|
1 |
|
|
|
156,251 |
|
|
|
85.6 |
% |
|
|
41.14 |
|
|
Y |
|
S |
| Kingstowne Retail |
|
Fairfax County VA |
|
|
1 |
|
|
|
88,288 |
|
|
|
100.0 |
% |
|
|
33.86 |
|
|
Y |
|
S |
| One Freedom Square |
|
Fairfax County VA |
|
|
1 |
|
|
|
432,581 |
|
|
|
99.6 |
% |
|
|
45.44 |
|
|
N |
|
S |
| Two Freedom Square |
|
Fairfax County VA |
|
|
1 |
|
|
|
421,757 |
|
|
|
98.8 |
% |
|
|
43.82 |
|
|
N |
|
S |
| One Reston Overlook |
|
Fairfax County VA |
|
|
1 |
|
|
|
319,519 |
|
|
|
100.0 |
% |
|
|
36.68 |
|
|
N |
|
S |
| Two Reston Overlook |
|
Fairfax County VA |
|
|
1 |
|
|
|
134,615 |
|
|
|
100.0 |
% |
|
|
34.84 |
|
|
N |
|
S |
| One and Two Discovery Square |
|
Fairfax County VA |
|
|
2 |
|
|
|
366,990 |
|
|
|
100.0 |
% |
|
|
42.40 |
|
|
N |
|
S |
| New Dominion Technology Park - Building One |
|
Fairfax County VA |
|
|
1 |
|
|
|
235,201 |
|
|
|
100.0 |
% |
|
|
32.95 |
|
|
Y |
|
S |
| New Dominion Technology Park - Building Two |
|
Fairfax County VA |
|
|
1 |
|
|
|
257,400 |
|
|
|
100.0 |
% |
|
|
39.37 |
|
|
N |
|
S |
| Reston Corporate Center |
|
Fairfax County VA |
|
|
2 |
|
|
|
261,046 |
|
|
|
100.0 |
% |
|
|
38.82 |
|
|
N |
|
S |
| South of Market |
|
Fairfax County VA |
|
|
3 |
|
|
|
623,665 |
|
|
|
89.3 |
% |
|
|
51.89 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35 |
|
|
|
9,386,768 |
|
|
|
95.1 |
% |
|
$ |
53.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office/Technical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 7435 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
103,557 |
|
|
|
67.1 |
% |
|
$ |
22.64 |
|
|
N |
|
S |
| 7451 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
45,615 |
|
|
|
67.4 |
% |
|
|
25.56 |
|
|
N |
|
S |
| 7450 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
62,402 |
|
|
|
0.0 |
% |
|
|
— |
|
|
N |
|
S |
| 7374 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
57,321 |
|
|
|
100.0 |
% |
|
|
17.58 |
|
|
N |
|
S |
| 8000 Grainger Court |
|
Fairfax County VA |
|
|
1 |
|
|
|
88,775 |
|
|
|
37.6 |
% |
|
|
23.02 |
|
|
N |
|
S |
| 7500 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
79,971 |
|
|
|
100.0 |
% |
|
|
16.14 |
|
|
N |
|
S |
| 7501 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
75,756 |
|
|
|
100.0 |
% |
|
|
28.14 |
|
|
N |
|
S |
| 7601 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
114,028 |
|
|
|
100.0 |
% |
|
|
18.39 |
|
|
N |
|
S |
| 7375 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
26,865 |
|
|
|
100.0 |
% |
|
|
24.16 |
|
|
N |
|
S |
| 8000 Corporate Court |
|
Fairfax County VA |
|
|
1 |
|
|
|
52,539 |
|
|
|
100.0 |
% |
|
|
13.12 |
|
|
N |
|
S |
| 7300 Boston Boulevard |
|
Fairfax County VA |
|
|
1 |
|
|
|
32,000 |
|
|
|
100.0 |
% |
|
|
20.60 |
|
|
N |
|
S |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11 |
|
|
|
738,829 |
|
|
|
77.4 |
% |
|
$ |
20.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Washington, DC: |
|
|
|
|
46 |
|
|
|
10,125,597 |
|
|
|
93.8 |
% |
|
$ |
51.23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total In-Service Properties: |
|
|
|
|
155 |
|
|
|
41,405,417 |
|
|
|
90.3 |
% |
|
$ |
60.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
22
Boston Properties, Inc.
First Quarter 2015
TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION
TOP 20 TENANTS BY SQUARE FEET LEASED
|
|
|
|
|
|
|
|
|
|
|
| |
|
Tenant |
|
Sq. Ft. |
|
|
% of
Portfolio |
|
|
|
|
|
| 1 |
|
US Government |
|
|
1,679,405 |
(1) |
|
|
4.06 |
% |
| 2 |
|
Citibank |
|
|
984,692 |
(2) |
|
|
2.38 |
% |
| 3 |
|
Biogen |
|
|
772,212 |
|
|
|
1.87 |
% |
| 4 |
|
Bank of America |
|
|
758,995 |
(3) |
|
|
1.83 |
% |
| 5 |
|
Wellington Management |
|
|
707,568 |
(4) |
|
|
1.71 |
% |
| 6 |
|
Kirkland & Ellis |
|
|
612,769 |
(5) |
|
|
1.48 |
% |
| 7 |
|
Genentech |
|
|
570,770 |
|
|
|
1.38 |
% |
| 8 |
|
Ropes & Gray |
|
|
528,931 |
|
|
|
1.28 |
% |
| 9 |
|
O’Melveny & Myers |
|
|
504,902 |
(6) |
|
|
1.22 |
% |
| 10 |
|
Shearman & Sterling |
|
|
450,258 |
|
|
|
1.09 |
% |
| 11 |
|
Weil Gotshal Manges |
|
|
448,351 |
(7) |
|
|
1.08 |
% |
| 12 |
|
Microsoft |
|
|
382,532 |
|
|
|
0.92 |
% |
| 13 |
|
Finnegan Henderson Farabow |
|
|
362,405 |
(8) |
|
|
0.88 |
% |
| 14 |
|
Ann Inc. (fka Ann Taylor Corp.) |
|
|
351,026 |
(9) |
|
|
0.85 |
% |
| 15 |
|
Morgan Lewis Bockius |
|
|
348,151 |
|
|
|
0.84 |
% |
| 16 |
|
Google |
|
|
330,313 |
|
|
|
0.80 |
% |
| 17 |
|
PTC |
|
|
320,655 |
|
|
|
0.78 |
% |
| 18 |
|
Mass Financial Services |
|
|
301,668 |
|
|
|
0.73 |
% |
| 19 |
|
Aramis (Estee Lauder) |
|
|
295,610 |
(10) |
|
|
0.71 |
% |
| 20 |
|
Manufacturers Investment (Manulife) |
|
|
284,640 |
|
|
|
0.69 |
% |
|
|
|
|
|
|
Total % of Portfolio Square Feet |
|
|
|
|
|
|
26.58 |
% |
|
|
Total % of Portfolio Revenue |
|
|
|
|
|
|
30.02 |
% |
|
|
Total % of Boston Properties’ Share of Portfolio Revenue |
|
|
|
|
|
|
27.52 |
% |
Notable Signed Deals (11)
|
|
|
|
|
| Tenant |
|
Property |
|
Sq. Ft. |
| salesforce.com |
|
Salesforce Tower |
|
714,000 |
| Arnold & Porter |
|
601 Massachusetts Avenue |
|
376,000 |
| Blue Cross and Blue Shield of Massachusetts |
|
101 Huntington Avenue |
|
308,000 |
| (1) |
Includes 92,620 & 104,874 square feet of space in properties in which Boston Properties has a 51% & 50% interest, respectively. |
| (2) |
Includes 443,141, 10,080 & 2,761 square feet of space in properties in which Boston Properties has a 55%, 60%, and 51% interest, respectively. |
| (3) |
Includes 690,908 & 50,887 square feet of space in properties in which Boston Properties has a 55% & 60% interest, respectively. |
| (4) |
Includes 696,809 square feet of space in properties in which Boston Properties has a 55% interest. |
| (5) |
Includes 391,662 & 221,107 square feet of space in properties in which Boston Properties has a 55% & 51% interest, respectively. |
| (6) |
Includes 325,750 square feet of space in a property in which Boston Properties has a 55% interest. |
| (7) |
Includes 420,204 & 28,147 square feet of space in properties in which Boston Properties has a 60% & 55% interest, respectively. |
| (8) |
Includes 292,548 square feet of space in a property in which Boston Properties has a 25% interest. |
| (9) |
Includes 331,209 square feet of space in a property in which Boston Properties has a 55% interest. |
| (10) |
Includes 295,610 square feet of space in a property in which Boston Properties has a 60% interest. |
| (11) |
Represents leases signed with occupancy commencing in the future.
|
TENANT DIVERSIFICATION (GROSS RENT)
23
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE OFFICE PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases p.s.f. |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Annualized
Revenues Under
Expiring Leases
with
future step-ups - p.s.f. |
|
|
Percentage of
Total Square Feet |
|
|
|
|
|
|
|
|
| 2015 |
|
|
1,763,658 |
|
|
$ |
83,437,361 |
|
|
$ |
47.31 |
|
|
$ |
84,223,139 |
|
|
$ |
47.75 |
|
|
|
4.68 |
% (4) |
| 2016 |
|
|
2,749,193 |
|
|
|
143,590,097 |
|
|
|
52.23 |
|
|
|
145,700,745 |
|
|
|
53.00 |
|
|
|
7.29 |
% |
| 2017 |
|
|
3,291,800 |
|
|
|
203,303,179 |
|
|
|
61.76 |
|
|
|
206,826,765 |
|
|
|
62.83 |
|
|
|
8.73 |
% |
| 2018 |
|
|
1,637,816 |
|
|
|
97,587,999 |
|
|
|
59.58 |
|
|
|
100,646,566 |
|
|
|
61.45 |
|
|
|
4.35 |
% |
| 2019 |
|
|
3,014,394 |
|
|
|
163,746,306 |
|
|
|
54.32 |
|
|
|
170,149,226 |
|
|
|
56.45 |
|
|
|
8.00 |
% |
| 2020 |
|
|
3,744,843 |
|
|
|
231,821,967 |
|
|
|
61.90 |
|
|
|
246,848,621 |
|
|
|
65.92 |
|
|
|
9.94 |
% |
| 2021 |
|
|
2,347,891 |
|
|
|
129,748,123 |
|
|
|
55.26 |
|
|
|
145,071,528 |
|
|
|
61.79 |
|
|
|
6.23 |
% |
| 2022 |
|
|
3,761,991 |
|
|
|
207,997,323 |
|
|
|
55.29 |
|
|
|
230,819,520 |
|
|
|
61.36 |
|
|
|
9.98 |
% |
| 2023 |
|
|
966,276 |
|
|
|
52,750,364 |
|
|
|
54.59 |
|
|
|
61,339,434 |
|
|
|
63.48 |
|
|
|
2.56 |
% |
| 2024 |
|
|
2,401,916 |
|
|
|
137,837,308 |
|
|
|
57.39 |
|
|
|
154,643,090 |
|
|
|
64.38 |
|
|
|
6.37 |
% |
| Thereafter |
|
|
8,624,772 |
|
|
|
596,076,227 |
|
|
|
69.11 |
|
|
|
774,846,567 |
|
|
|
89.84 |
|
|
|
22.88 |
% |
Occupancy By Location (2) (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CBD |
|
|
Suburban |
|
|
Total |
|
| Location |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
|
| Boston |
|
|
87.6 |
% |
|
|
95.3 |
% |
|
|
91.3 |
% |
|
|
87.6 |
% |
|
|
88.9 |
% |
|
|
92.6 |
% |
| New York |
|
|
93.1 |
% |
|
|
97.5 |
% |
|
|
80.5 |
% |
|
|
79.8 |
% |
|
|
90.4 |
% |
|
|
93.3 |
% |
| San Francisco |
|
|
94.2 |
% |
|
|
94.4 |
% |
|
|
70.3 |
% |
|
|
68.8 |
% |
|
|
87.1 |
% |
|
|
85.9 |
% |
| Washington, DC |
|
|
96.1 |
% |
|
|
94.7 |
% |
|
|
94.3 |
% |
|
|
96.1 |
% |
|
|
95.1 |
% |
|
|
95.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
91.9 |
% |
|
|
95.8 |
% |
|
|
88.0 |
% |
|
|
87.6 |
% |
|
|
90.6 |
% |
|
|
92.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes approximately 2,200,000 square feet of retail space. |
24
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE OFFICE/TECHNICAL PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases p.s.f. |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Annualized
Revenues Under
Expiring Leases
with
future step-ups - p.s.f. |
|
|
Percentage of
Total Square Feet |
|
|
|
|
|
|
|
|
| 2015 |
|
|
159,885 |
|
|
$ |
4,362,755 |
|
|
$ |
27.29 |
|
|
$ |
4,362,755 |
|
|
$ |
27.29 |
|
|
|
9.40 |
% |
| 2016 |
|
|
317,784 |
|
|
|
23,544,223 |
|
|
|
74.09 |
|
|
|
23,683,512 |
|
|
|
74.53 |
|
|
|
18.68 |
% |
| 2017 |
|
|
132,163 |
|
|
|
4,762,327 |
|
|
|
36.03 |
|
|
|
4,927,900 |
|
|
|
37.29 |
|
|
|
7.77 |
% |
| 2018 |
|
|
28,364 |
|
|
|
1,047,596 |
|
|
|
36.93 |
|
|
|
1,258,001 |
|
|
|
44.35 |
|
|
|
1.67 |
% |
| 2019 |
|
|
455,206 |
|
|
|
13,702,466 |
|
|
|
30.10 |
|
|
|
15,367,408 |
|
|
|
33.76 |
|
|
|
26.75 |
% |
| 2020 |
|
|
114,375 |
|
|
|
2,738,940 |
|
|
|
23.95 |
|
|
|
2,889,207 |
|
|
|
25.26 |
|
|
|
6.72 |
% |
| 2021 |
|
|
109,860 |
|
|
|
1,697,118 |
|
|
|
15.45 |
|
|
|
1,817,892 |
|
|
|
16.55 |
|
|
|
6.46 |
% |
| 2022 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
% |
| 2023 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
% |
| 2024 |
|
|
82,188 |
|
|
|
3,122,840 |
|
|
|
38.00 |
|
|
|
3,781,137 |
|
|
|
46.01 |
|
|
|
4.83 |
% |
| Thereafter |
|
|
23,439 |
|
|
|
452,293 |
|
|
|
19.30 |
|
|
|
540,892 |
|
|
|
23.08 |
|
|
|
1.38 |
% |
Occupancy By Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CBD |
|
|
Suburban |
|
|
Total |
|
| Location |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
|
| Boston |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
0.0 |
% |
|
|
0.0 |
% |
|
|
76.0 |
% |
|
|
76.0 |
% |
| New York |
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
| San Francisco |
|
|
N/A |
|
|
|
N/A |
|
|
|
100.0 |
% |
|
|
87.1 |
% |
|
|
100.0 |
% |
|
|
87.1 |
% |
| Washington, DC |
|
|
N/A |
|
|
|
N/A |
|
|
|
77.4 |
% |
|
|
89.7 |
% |
|
|
77.4 |
% |
|
|
89.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
81.4 |
% |
|
|
83.1 |
% |
|
|
84.7 |
% |
|
|
85.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
25
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE RETAIL PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases p.s.f. |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Annualized
Revenues Under
Expiring Leases
with
future step-ups - p.s.f. |
|
|
Percentage of
Total Square Feet |
|
|
|
|
|
|
|
|
| 2015 |
|
|
90,094 |
|
|
$ |
10,684,797 |
|
|
$ |
118.60 |
|
|
$ |
10,807,765 |
|
|
$ |
119.96 |
|
|
|
4.48 |
% (4) |
| 2016 |
|
|
201,600 |
|
|
|
16,634,353 |
|
|
|
82.51 |
|
|
|
16,656,433 |
|
|
|
82.62 |
|
|
|
10.02 |
% |
| 2017 |
|
|
209,851 |
|
|
|
29,673,761 |
|
|
|
141.40 |
|
|
|
30,613,087 |
|
|
|
145.88 |
|
|
|
10.43 |
% |
| 2018 |
|
|
242,424 |
|
|
|
20,719,658 |
|
|
|
85.47 |
|
|
|
22,061,567 |
|
|
|
91.00 |
|
|
|
12.05 |
% |
| 2019 |
|
|
86,370 |
|
|
|
6,598,592 |
|
|
|
76.40 |
|
|
|
6,823,709 |
|
|
|
79.01 |
|
|
|
4.29 |
% |
| 2020 |
|
|
159,616 |
|
|
|
8,254,465 |
|
|
|
51.71 |
|
|
|
10,681,227 |
|
|
|
66.92 |
|
|
|
7.93 |
% |
| 2021 |
|
|
114,129 |
|
|
|
7,212,224 |
|
|
|
63.19 |
|
|
|
7,893,791 |
|
|
|
69.17 |
|
|
|
5.67 |
% |
| 2022 |
|
|
235,624 |
|
|
|
18,171,666 |
|
|
|
77.12 |
|
|
|
20,300,380 |
|
|
|
86.16 |
|
|
|
11.71 |
% |
| 2023 |
|
|
194,535 |
|
|
|
17,492,706 |
|
|
|
89.92 |
|
|
|
20,044,816 |
|
|
|
103.04 |
|
|
|
9.67 |
% |
| 2024 |
|
|
99,261 |
|
|
|
9,095,490 |
|
|
|
91.63 |
|
|
|
10,814,682 |
|
|
|
108.95 |
|
|
|
4.93 |
% |
| Thereafter |
|
|
378,183 |
|
|
|
26,689,422 |
|
|
|
70.57 |
|
|
|
36,908,202 |
|
|
|
97.59 |
|
|
|
18.80 |
% |
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
26
Boston Properties, Inc.
First Quarter 2015
GRAND TOTAL OF ALL
IN-SERVICE PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases p.s.f. |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Annualized
Revenues Under
Expiring Leases
with
future step-ups - p.s.f. |
|
|
Percentage of
Total Square Feet |
|
|
|
|
|
|
|
|
| 2015 |
|
|
2,013,637 |
|
|
$ |
98,484,913 |
|
|
$ |
48.91 |
|
|
$ |
99,393,659 |
|
|
$ |
49.36 |
|
|
|
4.86 |
% (4) |
| 2016 |
|
|
3,268,577 |
|
|
|
183,768,672 |
|
|
|
56.22 |
|
|
|
186,040,690 |
|
|
|
56.92 |
|
|
|
7.89 |
% |
| 2017 |
|
|
3,633,814 |
|
|
|
237,739,267 |
|
|
|
65.42 |
|
|
|
242,367,752 |
|
|
|
66.70 |
|
|
|
8.78 |
% |
| 2018 |
|
|
1,908,604 |
|
|
|
119,355,252 |
|
|
|
62.54 |
|
|
|
123,966,134 |
|
|
|
64.95 |
|
|
|
4.61 |
% |
| 2019 |
|
|
3,555,970 |
|
|
|
184,047,364 |
|
|
|
51.76 |
|
|
|
192,340,343 |
|
|
|
54.09 |
|
|
|
8.59 |
% |
| 2020 |
|
|
4,018,834 |
|
|
|
242,815,373 |
|
|
|
60.42 |
|
|
|
260,419,055 |
|
|
|
64.80 |
|
|
|
9.71 |
% |
| 2021 |
|
|
2,571,880 |
|
|
|
138,657,466 |
|
|
|
53.91 |
|
|
|
154,783,211 |
|
|
|
60.18 |
|
|
|
6.21 |
% |
| 2022 |
|
|
3,997,615 |
|
|
|
226,168,989 |
|
|
|
56.58 |
|
|
|
251,119,900 |
|
|
|
62.82 |
|
|
|
9.65 |
% |
| 2023 |
|
|
1,160,811 |
|
|
|
70,243,070 |
|
|
|
60.51 |
|
|
|
81,384,250 |
|
|
|
70.11 |
|
|
|
2.80 |
% |
| 2024 |
|
|
2,583,365 |
|
|
|
150,055,638 |
|
|
|
58.09 |
|
|
|
169,238,909 |
|
|
|
65.51 |
|
|
|
6.24 |
% |
| Thereafter |
|
|
9,026,394 |
|
|
|
623,217,942 |
|
|
|
69.04 |
|
|
|
812,295,660 |
|
|
|
89.99 |
|
|
|
21.80 |
% |
Occupancy By Location (2) (5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CBD |
|
|
Suburban |
|
|
Total |
|
| Location |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
|
| Boston |
|
|
88.0 |
% |
|
|
95.5 |
% |
|
|
89.5 |
% |
|
|
85.8 |
% |
|
|
88.5 |
% |
|
|
92.1 |
% |
| New York |
|
|
93.1 |
% |
|
|
97.5 |
% |
|
|
80.5 |
% |
|
|
79.8 |
% |
|
|
90.4 |
% |
|
|
93.3 |
% |
| San Francisco |
|
|
94.2 |
% |
|
|
94.4 |
% |
|
|
77.9 |
% |
|
|
74.6 |
% |
|
|
88.3 |
% |
|
|
86.1 |
% |
| Washington, DC |
|
|
96.1 |
% |
|
|
94.7 |
% |
|
|
92.2 |
% |
|
|
95.4 |
% |
|
|
93.8 |
% |
|
|
95.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
92.0 |
% |
|
|
95.9 |
% |
|
|
87.4 |
% |
|
|
87.2 |
% |
|
|
90.3 |
% |
|
|
92.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes approximately 2,200,000 square feet of retail space, excluding our residential and hotel properties. |
27
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE BOSTON REGION PROPERTIES
Lease Expirations - Boston
Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
609,942 |
|
|
$ |
23,506,482 |
|
|
$ |
38.54 |
|
|
$ |
23,641,631 |
|
|
$ |
38.76 |
(4) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| 2016 |
|
|
721,765 |
|
|
|
28,188,038 |
|
|
|
39.05 |
|
|
|
29,482,556 |
|
|
|
40.85 |
|
|
|
225,532 |
|
|
|
20,741,856 |
|
|
|
91.97 |
|
|
|
20,741,856 |
|
|
|
91.97 |
|
| 2017 |
|
|
749,631 |
|
|
|
29,848,287 |
|
|
|
39.82 |
|
|
|
30,428,862 |
|
|
|
40.59 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2018 |
|
|
444,491 |
|
|
|
18,013,092 |
|
|
|
40.53 |
|
|
|
18,638,079 |
|
|
|
41.93 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2019 |
|
|
1,300,992 |
|
|
|
61,174,894 |
|
|
|
47.02 |
|
|
|
62,413,281 |
|
|
|
47.97 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2020 |
|
|
461,006 |
|
|
|
21,511,287 |
|
|
|
46.66 |
|
|
|
23,301,122 |
|
|
|
50.54 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2021 |
|
|
799,108 |
|
|
|
29,880,848 |
|
|
|
37.39 |
|
|
|
31,352,858 |
|
|
|
39.23 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2022 |
|
|
1,564,128 |
|
|
|
73,981,800 |
|
|
|
47.30 |
|
|
|
81,081,048 |
|
|
|
51.84 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2023 |
|
|
290,923 |
|
|
|
17,158,723 |
|
|
|
58.98 |
|
|
|
18,995,725 |
|
|
|
65.29 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2024 |
|
|
398,434 |
|
|
|
18,431,806 |
|
|
|
46.26 |
|
|
|
20,415,401 |
|
|
|
51.24 |
|
|
|
67,362 |
|
|
|
2,788,472 |
|
|
|
41.40 |
|
|
|
3,394,730 |
|
|
|
50.40 |
|
| Thereafter |
|
|
3,727,544 |
|
|
|
209,202,263 |
|
|
|
56.12 |
|
|
|
251,313,509 |
|
|
|
67.42 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
32,583 |
|
|
$ |
7,123,852 |
|
|
$ |
218.64 |
|
|
$ |
7,244,908 |
|
|
$ |
222.35 |
|
|
|
642,525 |
|
|
$ |
30,630,334 |
|
|
$ |
47.67 |
|
|
$ |
30,886,540 |
|
|
$ |
48.07 |
(4) |
| 2016 |
|
|
12,315 |
|
|
|
1,920,508 |
|
|
|
155.95 |
|
|
|
1,924,930 |
|
|
|
156.31 |
|
|
|
959,612 |
|
|
|
50,850,402 |
|
|
|
52.99 |
|
|
|
52,149,342 |
|
|
|
54.34 |
(5) |
| 2017 |
|
|
46,004 |
|
|
|
3,436,935 |
|
|
|
74.71 |
|
|
|
3,449,566 |
|
|
|
74.98 |
|
|
|
795,635 |
|
|
|
33,285,222 |
|
|
|
41.83 |
|
|
|
33,878,428 |
|
|
|
42.58 |
|
| 2018 |
|
|
137,623 |
|
|
|
6,306,719 |
|
|
|
45.83 |
|
|
|
6,417,350 |
|
|
|
46.63 |
|
|
|
582,114 |
|
|
|
24,319,811 |
|
|
|
41.78 |
|
|
|
25,055,429 |
|
|
|
43.04 |
|
| 2019 |
|
|
14,914 |
|
|
|
2,538,846 |
|
|
|
170.23 |
|
|
|
2,612,898 |
|
|
|
175.20 |
|
|
|
1,315,906 |
|
|
|
63,713,740 |
|
|
|
48.42 |
|
|
|
65,026,180 |
|
|
|
49.42 |
|
| 2020 |
|
|
94,768 |
|
|
|
4,440,911 |
|
|
|
46.86 |
|
|
|
6,552,110 |
|
|
|
69.14 |
|
|
|
555,774 |
|
|
|
25,952,199 |
|
|
|
46.70 |
|
|
|
29,853,232 |
|
|
|
53.71 |
|
| 2021 |
|
|
38,642 |
|
|
|
2,603,609 |
|
|
|
67.38 |
|
|
|
2,793,247 |
|
|
|
72.29 |
|
|
|
837,750 |
|
|
|
32,484,457 |
|
|
|
38.78 |
|
|
|
34,146,106 |
|
|
|
40.76 |
|
| 2022 |
|
|
126,196 |
|
|
|
5,847,557 |
|
|
|
46.34 |
|
|
|
6,419,193 |
|
|
|
50.87 |
|
|
|
1,690,324 |
|
|
|
79,829,357 |
|
|
|
47.23 |
|
|
|
87,500,240 |
|
|
|
51.77 |
|
| 2023 |
|
|
77,609 |
|
|
|
6,937,220 |
|
|
|
89.39 |
|
|
|
7,767,044 |
|
|
|
100.08 |
|
|
|
368,532 |
|
|
|
24,095,943 |
|
|
|
65.38 |
|
|
|
26,762,769 |
|
|
|
72.62 |
|
| 2024 |
|
|
70,570 |
|
|
|
4,154,992 |
|
|
|
58.88 |
|
|
|
4,558,268 |
|
|
|
64.59 |
|
|
|
536,366 |
|
|
|
25,375,270 |
|
|
|
47.31 |
|
|
|
28,368,398 |
|
|
|
52.89 |
|
| Thereafter |
|
|
134,353 |
|
|
|
5,781,120 |
|
|
|
43.03 |
|
|
|
6,988,230 |
|
|
|
52.01 |
|
|
|
3,861,897 |
|
|
|
214,983,383 |
|
|
|
55.67 |
|
|
|
258,301,739 |
|
|
|
66.88 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes 225,532 square feet of research/laboratory space. Excluding the research/laboratory space, current and future expiring rents would be $40.75 per square foot and $42.53 per square foot, respectively. This
225,532 square feet of research/laboratory space is subject to a tenant purchase option that was exercised on October 22, 2014 and is expected to close on February 1, 2016. |
28
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE BOSTON REGION PROPERTIES
Quarterly Lease Expirations - Boston Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
77,491 |
|
|
$ |
3,583,891 |
|
|
$ |
46.25 |
|
|
$ |
3,583,891 |
|
|
$ |
46.25 |
(4) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2015 |
|
|
189,958 |
|
|
|
6,501,885 |
|
|
|
34.23 |
|
|
|
6,632,723 |
|
|
|
34.92 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2015 |
|
|
188,837 |
|
|
|
8,839,629 |
|
|
|
46.81 |
|
|
|
8,839,630 |
|
|
|
46.81 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q4 2015 |
|
|
153,656 |
|
|
|
4,581,076 |
|
|
|
29.81 |
|
|
|
4,585,388 |
|
|
|
29.84 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
609,942 |
|
|
$ |
23,506,482 |
|
|
$ |
38.54 |
|
|
$ |
23,641,631 |
|
|
$ |
38.76 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
151,443 |
|
|
$ |
6,445,882 |
|
|
$ |
42.56 |
|
|
$ |
6,523,282 |
|
|
$ |
43.07 |
|
|
|
225,532 |
|
|
$ |
20,741,856 |
|
|
$ |
91.97 |
|
|
$ |
20,741,856 |
|
|
$ |
91.97 |
|
| Q2 2016 |
|
|
21,183 |
|
|
|
873,219 |
|
|
|
41.22 |
|
|
|
880,235 |
|
|
|
41.55 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2016 |
|
|
457,561 |
|
|
|
17,044,676 |
|
|
|
37.25 |
|
|
|
17,324,954 |
|
|
|
37.86 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q4 2016 |
|
|
91,578 |
|
|
|
3,824,261 |
|
|
|
41.76 |
|
|
|
4,754,085 |
|
|
|
51.91 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
721,765 |
|
|
$ |
28,188,038 |
|
|
$ |
39.05 |
|
|
$ |
29,482,556 |
|
|
$ |
40.85 |
|
|
|
225,532 |
|
|
$ |
20,741,856 |
|
|
$ |
91.97 |
|
|
$ |
20,741,856 |
|
|
$ |
91.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
77,491 |
|
|
$ |
3,583,891 |
|
|
$ |
46.25 |
|
|
$ |
3,583,891 |
|
|
$ |
46.25 |
(4) |
| Q2 2015 |
|
|
17,245 |
|
|
|
3,617,752 |
|
|
|
209.79 |
|
|
|
3,623,752 |
|
|
|
210.13 |
|
|
|
207,203 |
|
|
|
10,119,637 |
|
|
|
48.84 |
|
|
|
10,256,475 |
|
|
|
49.50 |
|
| Q3 2015 |
|
|
5,452 |
|
|
|
1,300,840 |
|
|
|
238.60 |
|
|
|
1,399,696 |
|
|
|
256.73 |
|
|
|
194,289 |
|
|
|
10,140,469 |
|
|
|
52.19 |
|
|
|
10,239,326 |
|
|
|
52.70 |
|
| Q4 2015 |
|
|
9,886 |
|
|
|
2,205,260 |
|
|
|
223.07 |
|
|
|
2,221,460 |
|
|
|
224.71 |
|
|
|
163,542 |
|
|
|
6,786,336 |
|
|
|
41.50 |
|
|
|
6,806,848 |
|
|
|
41.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
32,583 |
|
|
$ |
7,123,852 |
|
|
$ |
218.64 |
|
|
$ |
7,244,908 |
|
|
$ |
222.35 |
|
|
|
642,525 |
|
|
$ |
30,630,334 |
|
|
$ |
47.67 |
|
|
$ |
30,886,540 |
|
|
$ |
48.07 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
8,114 |
|
|
$ |
1,156,644 |
|
|
$ |
142.55 |
|
|
$ |
1,157,448 |
|
|
$ |
142.65 |
|
|
|
385,089 |
|
|
$ |
28,344,382 |
|
|
$ |
73.60 |
|
|
$ |
28,422,586 |
|
|
$ |
73.81 |
|
| Q2 2016 |
|
|
145 |
|
|
|
138,738 |
|
|
|
956.82 |
|
|
|
140,738 |
|
|
|
970.61 |
|
|
|
21,328 |
|
|
|
1,011,957 |
|
|
|
47.45 |
|
|
|
1,020,974 |
|
|
|
47.87 |
|
| Q3 2016 |
|
|
2,279 |
|
|
|
341,005 |
|
|
|
149.63 |
|
|
|
341,073 |
|
|
|
149.66 |
|
|
|
459,840 |
|
|
|
17,385,680 |
|
|
|
37.81 |
|
|
|
17,666,027 |
|
|
|
38.42 |
|
| Q4 2016 |
|
|
1,777 |
|
|
|
284,121 |
|
|
|
159.89 |
|
|
|
285,671 |
|
|
|
160.76 |
|
|
|
93,355 |
|
|
|
4,108,383 |
|
|
|
44.01 |
|
|
|
5,039,756 |
|
|
|
53.98 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
12,315 |
|
|
$ |
1,920,508 |
|
|
$ |
155.95 |
|
|
$ |
1,924,930 |
|
|
$ |
156.31 |
|
|
|
959,612 |
|
|
$ |
50,850,402 |
|
|
$ |
52.99 |
|
|
$ |
52,149,342 |
|
|
$ |
54.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
29
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE NEW YORK REGION PROPERTIES
Lease Expirations - New York
Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Year of
Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues
Under Expiring
Leases
with future
step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues
Under Expiring
Leases
with future
step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
286,368 |
|
|
$ |
14,233,309 |
|
|
$ |
49.70 |
|
|
$ |
14,711,865 |
|
|
$ |
51.37 |
(4) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| 2016 |
|
|
629,673 |
|
|
|
49,928,223 |
|
|
|
79.29 |
|
|
|
50,082,180 |
|
|
|
79.54 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2017 |
|
|
1,249,177 |
|
|
|
110,533,832 |
|
|
|
88.49 |
|
|
|
111,578,354 |
|
|
|
89.32 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2018 |
|
|
548,167 |
|
|
|
45,116,195 |
|
|
|
82.30 |
|
|
|
44,868,339 |
|
|
|
81.85 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2019 |
|
|
523,658 |
|
|
|
41,988,709 |
|
|
|
80.18 |
|
|
|
42,723,512 |
|
|
|
81.59 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2020 |
|
|
1,647,142 |
|
|
|
127,010,812 |
|
|
|
77.11 |
|
|
|
133,438,642 |
|
|
|
81.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2021 |
|
|
306,302 |
|
|
|
32,333,114 |
|
|
|
105.56 |
|
|
|
35,821,145 |
|
|
|
116.95 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2022 |
|
|
801,888 |
|
|
|
67,017,288 |
|
|
|
83.57 |
|
|
|
71,961,055 |
|
|
|
89.74 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2023 |
|
|
81,115 |
|
|
|
6,998,760 |
|
|
|
86.28 |
|
|
|
7,658,273 |
|
|
|
94.41 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2024 |
|
|
1,061,714 |
|
|
|
71,324,878 |
|
|
|
67.18 |
|
|
|
78,409,975 |
|
|
|
73.85 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Thereafter |
|
|
3,122,553 |
|
|
|
277,141,098 |
|
|
|
88.75 |
|
|
|
377,559,420 |
|
|
|
120.91 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Year of
Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues
Under Expiring
Leases
with future
step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues
Under Expiring
Leases
with future
step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
1,312 |
|
|
$ |
131,034 |
|
|
$ |
99.87 |
|
|
$ |
131,034 |
|
|
$ |
99.87 |
|
|
|
287,680 |
|
|
$ |
14,364,344 |
|
|
$ |
49.93 |
|
|
$ |
14,842,900 |
|
|
$ |
51.60 |
(4) |
| 2016 |
|
|
83,166 |
|
|
|
8,693,266 |
|
|
|
104.53 |
|
|
|
8,699,279 |
|
|
|
104.60 |
|
|
|
712,839 |
|
|
|
58,621,489 |
|
|
|
82.24 |
|
|
|
58,781,459 |
|
|
|
82.46 |
|
| 2017 |
|
|
79,535 |
|
|
|
20,583,000 |
|
|
|
258.79 |
|
|
|
21,333,000 |
|
|
|
268.22 |
|
|
|
1,328,712 |
|
|
|
131,116,832 |
|
|
|
98.68 |
|
|
|
132,911,354 |
|
|
|
100.03 |
|
| 2018 |
|
|
6,514 |
|
|
|
8,192,044 |
|
|
|
1,257.61 |
|
|
|
9,213,309 |
|
|
|
1,414.39 |
|
|
|
554,681 |
|
|
|
53,308,239 |
|
|
|
96.11 |
|
|
|
54,081,649 |
|
|
|
97.50 |
|
| 2019 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
523,658 |
|
|
|
41,988,709 |
|
|
|
80.18 |
|
|
|
42,723,512 |
|
|
|
81.59 |
|
| 2020 |
|
|
4,195 |
|
|
|
280,785 |
|
|
|
66.93 |
|
|
|
286,163 |
|
|
|
68.22 |
|
|
|
1,651,337 |
|
|
|
127,291,597 |
|
|
|
77.08 |
|
|
|
133,724,805 |
|
|
|
80.98 |
|
| 2021 |
|
|
2,056 |
|
|
|
244,151 |
|
|
|
118.75 |
|
|
|
284,293 |
|
|
|
138.27 |
|
|
|
308,358 |
|
|
|
32,577,265 |
|
|
|
105.65 |
|
|
|
36,105,438 |
|
|
|
117.09 |
|
| 2022 |
|
|
58,093 |
|
|
|
9,643,750 |
|
|
|
166.01 |
|
|
|
10,868,620 |
|
|
|
187.09 |
|
|
|
859,981 |
|
|
|
76,661,038 |
|
|
|
89.14 |
|
|
|
82,829,675 |
|
|
|
96.32 |
|
| 2023 |
|
|
33,292 |
|
|
|
6,554,620 |
|
|
|
196.88 |
|
|
|
7,839,477 |
|
|
|
235.48 |
|
|
|
114,407 |
|
|
|
13,553,380 |
|
|
|
118.47 |
|
|
|
15,497,749 |
|
|
|
135.46 |
|
| 2024 |
|
|
11,395 |
|
|
|
3,919,633 |
|
|
|
343.98 |
|
|
|
5,074,896 |
|
|
|
445.36 |
|
|
|
1,073,109 |
|
|
|
75,244,511 |
|
|
|
70.12 |
|
|
|
83,484,871 |
|
|
|
77.80 |
|
| Thereafter |
|
|
71,391 |
|
|
|
15,019,384 |
|
|
|
210.38 |
|
|
|
22,697,954 |
|
|
|
317.94 |
|
|
|
3,193,944 |
|
|
|
292,160,481 |
|
|
|
91.47 |
|
|
|
400,257,373 |
|
|
|
125.32 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
30
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE NEW YORK REGION PROPERTIES
Quarterly Lease Expirations - New York Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
6,536 |
|
|
$ |
545,452 |
|
|
$ |
83.45 |
|
|
$ |
545,452 |
|
|
$ |
83.45 |
(4) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2015 |
|
|
103,622 |
|
|
|
3,643,594 |
|
|
|
35.16 |
|
|
|
3,643,594 |
|
|
|
35.16 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2015 |
|
|
59,317 |
|
|
|
3,115,573 |
|
|
|
52.52 |
|
|
|
3,594,129 |
|
|
|
60.59 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q4 2015 |
|
|
116,893 |
|
|
|
6,928,690 |
|
|
|
59.27 |
|
|
|
6,928,690 |
|
|
|
59.27 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
286,368 |
|
|
$ |
14,233,309 |
|
|
$ |
49.70 |
|
|
$ |
14,711,865 |
|
|
$ |
51.37 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
213,450 |
|
|
$ |
13,287,318 |
|
|
$ |
62.25 |
|
|
$ |
13,428,393 |
|
|
$ |
62.91 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2016 |
|
|
311,968 |
|
|
|
26,877,236 |
|
|
|
86.15 |
|
|
|
26,870,329 |
|
|
|
86.13 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2016 |
|
|
20,154 |
|
|
|
1,936,433 |
|
|
|
96.08 |
|
|
|
1,940,400 |
|
|
|
96.28 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q4 2016 |
|
|
84,101 |
|
|
|
7,827,235 |
|
|
|
93.07 |
|
|
|
7,843,058 |
|
|
|
93.26 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
629,673 |
|
|
$ |
49,928,223 |
|
|
$ |
79.29 |
|
|
$ |
50,082,180 |
|
|
$ |
79.54 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
6,536 |
|
|
$ |
545,452 |
|
|
$ |
83.45 |
|
|
$ |
545,452 |
|
|
$ |
83.45 |
(4) |
| Q2 2015 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
103,622 |
|
|
|
3,643,594 |
|
|
|
35.16 |
|
|
|
3,643,594 |
|
|
|
35.16 |
|
| Q3 2015 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
59,317 |
|
|
|
3,115,573 |
|
|
|
52.52 |
|
|
|
3,594,129 |
|
|
|
60.59 |
|
| Q4 2015 |
|
|
1,312 |
|
|
|
131,034 |
|
|
|
99.87 |
|
|
|
131,034 |
|
|
|
99.87 |
|
|
|
118,205 |
|
|
|
7,059,724 |
|
|
|
59.72 |
|
|
|
7,059,724 |
|
|
|
59.72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
1,312 |
|
|
$ |
131,034 |
|
|
$ |
99.87 |
|
|
$ |
131,034 |
|
|
$ |
99.87 |
|
|
|
287,680 |
|
|
$ |
14,364,344 |
|
|
$ |
49.93 |
|
|
$ |
14,842,900 |
|
|
$ |
51.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
46,938 |
|
|
$ |
5,147,410 |
|
|
$ |
109.66 |
|
|
$ |
5,148,086 |
|
|
$ |
109.68 |
|
|
|
260,388 |
|
|
$ |
18,434,728 |
|
|
$ |
70.80 |
|
|
$ |
18,576,479 |
|
|
$ |
71.34 |
|
| Q2 2016 |
|
|
16,868 |
|
|
|
1,147,988 |
|
|
|
68.06 |
|
|
|
1,153,325 |
|
|
|
68.37 |
|
|
|
328,836 |
|
|
|
28,025,224 |
|
|
|
85.23 |
|
|
|
28,023,654 |
|
|
|
85.22 |
|
| Q3 2016 |
|
|
10,210 |
|
|
|
1,607,951 |
|
|
|
157.49 |
|
|
|
1,607,951 |
|
|
|
157.49 |
|
|
|
30,364 |
|
|
|
3,544,384 |
|
|
|
116.73 |
|
|
|
3,548,350 |
|
|
|
116.86 |
|
| Q4 2016 |
|
|
9,150 |
|
|
|
789,917 |
|
|
|
86.33 |
|
|
|
789,917 |
|
|
|
86.33 |
|
|
|
93,251 |
|
|
|
8,617,152 |
|
|
|
92.41 |
|
|
|
8,632,975 |
|
|
|
92.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
83,166 |
|
|
$ |
8,693,266 |
|
|
$ |
104.53 |
|
|
$ |
8,699,279 |
|
|
$ |
104.60 |
|
|
|
712,839 |
|
|
$ |
58,621,489 |
|
|
$ |
82.24 |
|
|
$ |
58,781,459 |
|
|
$ |
82.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
31
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE SAN FRANCISCO REGION PROPERTIES
Lease Expirations - San
Francisco Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
369,823 |
|
|
$ |
16,141,107 |
|
|
$ |
43.65 |
|
|
$ |
16,258,390 |
|
|
$ |
43.96 |
|
|
|
17,100 |
|
|
$ |
423,639 |
|
|
$ |
24.77 |
|
|
$ |
423,639 |
|
|
$ |
24.77 |
|
| 2016 |
|
|
973,101 |
|
|
|
41,418,348 |
|
|
|
42.56 |
|
|
|
41,497,678 |
|
|
|
42.64 |
|
|
|
58,852 |
|
|
|
2,033,592 |
|
|
|
34.55 |
|
|
|
2,153,994 |
|
|
|
36.60 |
|
| 2017 |
|
|
535,741 |
|
|
|
23,529,845 |
|
|
|
43.92 |
|
|
|
24,224,665 |
|
|
|
45.22 |
|
|
|
118,755 |
|
|
|
4,475,998 |
|
|
|
37.69 |
|
|
|
4,634,648 |
|
|
|
39.03 |
|
| 2018 |
|
|
178,460 |
|
|
|
9,688,253 |
|
|
|
54.29 |
|
|
|
10,553,273 |
|
|
|
59.14 |
|
|
|
28,364 |
|
|
|
1,047,596 |
|
|
|
36.93 |
|
|
|
1,258,001 |
|
|
|
44.35 |
|
| 2019 |
|
|
287,301 |
|
|
|
15,718,351 |
|
|
|
54.71 |
|
|
|
16,901,765 |
|
|
|
58.83 |
|
|
|
309,178 |
|
|
|
10,946,349 |
|
|
|
35.40 |
|
|
|
12,550,170 |
|
|
|
40.59 |
|
| 2020 |
|
|
559,745 |
|
|
|
33,446,264 |
|
|
|
59.75 |
|
|
|
35,597,773 |
|
|
|
63.60 |
|
|
|
34,404 |
|
|
|
1,447,915 |
|
|
|
42.09 |
|
|
|
1,598,182 |
|
|
|
46.45 |
|
| 2021 |
|
|
227,554 |
|
|
|
11,334,945 |
|
|
|
49.81 |
|
|
|
13,600,193 |
|
|
|
59.77 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2022 |
|
|
466,976 |
|
|
|
19,898,461 |
|
|
|
42.61 |
|
|
|
22,758,614 |
|
|
|
48.74 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2023 |
|
|
195,424 |
|
|
|
10,749,689 |
|
|
|
55.01 |
|
|
|
13,003,307 |
|
|
|
66.54 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2024 |
|
|
335,473 |
|
|
|
18,050,906 |
|
|
|
53.81 |
|
|
|
20,052,509 |
|
|
|
59.77 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Thereafter |
|
|
565,917 |
|
|
|
32,327,388 |
|
|
|
57.12 |
|
|
|
43,683,315 |
|
|
|
77.19 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
9,160 |
|
|
$ |
590,025 |
|
|
$ |
64.41 |
|
|
$ |
590,025 |
|
|
$ |
64.41 |
|
|
|
396,083 |
|
|
$ |
17,154,772 |
|
|
$ |
43.31 |
|
|
$ |
17,272,054 |
|
|
$ |
43.61 |
|
| 2016 |
|
|
39,764 |
|
|
|
2,034,255 |
|
|
|
51.16 |
|
|
|
2,044,498 |
|
|
|
51.42 |
|
|
|
1,071,717 |
|
|
|
45,486,194 |
|
|
|
42.44 |
|
|
|
45,696,171 |
|
|
|
42.64 |
|
| 2017 |
|
|
16,079 |
|
|
|
1,099,263 |
|
|
|
68.37 |
|
|
|
1,126,280 |
|
|
|
70.05 |
|
|
|
670,575 |
|
|
|
29,105,105 |
|
|
|
43.40 |
|
|
|
29,985,593 |
|
|
|
44.72 |
|
| 2018 |
|
|
32,264 |
|
|
|
1,927,931 |
|
|
|
59.75 |
|
|
|
1,987,536 |
|
|
|
61.60 |
|
|
|
239,088 |
|
|
|
12,663,780 |
|
|
|
52.97 |
|
|
|
13,798,810 |
|
|
|
57.71 |
|
| 2019 |
|
|
11,730 |
|
|
|
683,920 |
|
|
|
58.31 |
|
|
|
724,188 |
|
|
|
61.74 |
|
|
|
608,209 |
|
|
|
27,348,620 |
|
|
|
44.97 |
|
|
|
30,176,123 |
|
|
|
49.61 |
|
| 2020 |
|
|
31,420 |
|
|
|
1,746,704 |
|
|
|
55.59 |
|
|
|
1,924,330 |
|
|
|
61.25 |
|
|
|
625,569 |
|
|
|
36,640,883 |
|
|
|
58.57 |
|
|
|
39,120,284 |
|
|
|
62.54 |
|
| 2021 |
|
|
15,458 |
|
|
|
958,551 |
|
|
|
62.01 |
|
|
|
1,010,281 |
|
|
|
65.36 |
|
|
|
243,012 |
|
|
|
12,293,497 |
|
|
|
50.59 |
|
|
|
14,610,474 |
|
|
|
60.12 |
|
| 2022 |
|
|
27,445 |
|
|
|
1,062,751 |
|
|
|
38.72 |
|
|
|
1,146,825 |
|
|
|
41.79 |
|
|
|
494,421 |
|
|
|
20,961,212 |
|
|
|
42.40 |
|
|
|
23,905,438 |
|
|
|
48.35 |
|
| 2023 |
|
|
27,788 |
|
|
|
1,514,963 |
|
|
|
54.52 |
|
|
|
1,613,655 |
|
|
|
58.07 |
|
|
|
223,212 |
|
|
|
12,264,652 |
|
|
|
54.95 |
|
|
|
14,616,963 |
|
|
|
65.48 |
|
| 2024 |
|
|
8,545 |
|
|
|
547,662 |
|
|
|
64.09 |
|
|
|
655,485 |
|
|
|
76.71 |
|
|
|
344,018 |
|
|
|
18,598,568 |
|
|
|
54.06 |
|
|
|
20,707,993 |
|
|
|
60.19 |
|
| Thereafter |
|
|
21,461 |
|
|
|
1,230,924 |
|
|
|
57.36 |
|
|
|
1,505,538 |
|
|
|
70.15 |
|
|
|
587,378 |
|
|
|
33,558,312 |
|
|
|
57.13 |
|
|
|
45,188,853 |
|
|
|
76.93 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
32
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE SAN FRANCISCO REGION PROPERTIES
Quarterly Lease Expirations - San Francisco Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2015 |
|
|
34,731 |
|
|
|
1,550,772 |
|
|
|
44.65 |
|
|
|
1,550,772 |
|
|
|
44.65 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2015 |
|
|
107,789 |
|
|
|
5,890,691 |
|
|
|
54.65 |
|
|
|
5,853,719 |
|
|
|
54.31 |
|
|
|
12,900 |
|
|
|
346,065 |
|
|
|
26.83 |
|
|
|
346,065 |
|
|
|
26.83 |
|
| Q4 2015 |
|
|
227,303 |
|
|
|
8,699,644 |
|
|
|
38.27 |
|
|
|
8,853,898 |
|
|
|
38.95 |
|
|
|
4,200 |
|
|
|
77,575 |
|
|
|
18.47 |
|
|
|
77,575 |
|
|
|
18.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
369,823 |
|
|
$ |
16,141,107 |
|
|
$ |
43.65 |
|
|
$ |
16,258,390 |
|
|
$ |
43.96 |
|
|
|
17,100 |
|
|
$ |
423,639 |
|
|
$ |
24.77 |
|
|
$ |
423,639 |
|
|
$ |
24.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
166,245 |
|
|
$ |
7,359,253 |
|
|
$ |
44.27 |
|
|
$ |
7,363,888 |
|
|
$ |
44.30 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2016 |
|
|
233,901 |
|
|
|
10,369,227 |
|
|
|
44.33 |
|
|
|
10,422,284 |
|
|
|
44.56 |
|
|
|
27,790 |
|
|
|
787,458 |
|
|
|
28.34 |
|
|
|
877,109 |
|
|
|
31.56 |
|
| Q3 2016 |
|
|
212,325 |
|
|
|
10,137,992 |
|
|
|
47.75 |
|
|
|
9,992,757 |
|
|
|
47.06 |
|
|
|
31,062 |
|
|
|
1,246,134 |
|
|
|
40.12 |
|
|
|
1,276,885 |
|
|
|
41.11 |
|
| Q4 2016 |
|
|
360,630 |
|
|
|
13,551,876 |
|
|
|
37.58 |
|
|
|
13,718,748 |
|
|
|
38.04 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
973,101 |
|
|
$ |
41,418,348 |
|
|
$ |
42.56 |
|
|
$ |
41,497,678 |
|
|
$ |
42.64 |
|
|
|
58,852 |
|
|
$ |
2,033,592 |
|
|
$ |
34.55 |
|
|
$ |
2,153,994 |
|
|
$ |
36.60 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2015 |
|
|
2,619 |
|
|
|
176,718 |
|
|
|
67.48 |
|
|
|
176,718 |
|
|
|
67.48 |
|
|
|
37,350 |
|
|
|
1,727,490 |
|
|
|
46.25 |
|
|
|
1,727,490 |
|
|
|
46.25 |
|
| Q3 2015 |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
120,689 |
|
|
|
6,236,756 |
|
|
|
51.68 |
|
|
|
6,199,784 |
|
|
|
51.37 |
|
| Q4 2015 |
|
|
6,541 |
|
|
|
413,307 |
|
|
|
63.19 |
|
|
|
413,307 |
|
|
|
63.19 |
|
|
|
238,044 |
|
|
|
9,190,525 |
|
|
|
38.61 |
|
|
|
9,344,780 |
|
|
|
39.26 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
9,160 |
|
|
$ |
590,025 |
|
|
$ |
64.41 |
|
|
$ |
590,025 |
|
|
$ |
64.41 |
|
|
|
396,083 |
|
|
$ |
17,154,772 |
|
|
$ |
43.31 |
|
|
$ |
17,272,054 |
|
|
$ |
43.61 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
7,093 |
|
|
$ |
488,672 |
|
|
$ |
68.90 |
|
|
$ |
489,907 |
|
|
$ |
69.07 |
|
|
|
173,338 |
|
|
$ |
7,847,925 |
|
|
$ |
45.28 |
|
|
$ |
7,853,795 |
|
|
$ |
45.31 |
|
| Q2 2016 |
|
|
2,236 |
|
|
|
153,999 |
|
|
|
68.87 |
|
|
|
154,554 |
|
|
|
69.12 |
|
|
|
263,927 |
|
|
|
11,310,684 |
|
|
|
42.86 |
|
|
|
11,453,947 |
|
|
|
43.40 |
|
| Q3 2016 |
|
|
9,488 |
|
|
|
513,741 |
|
|
|
54.15 |
|
|
|
514,935 |
|
|
|
54.27 |
|
|
|
252,875 |
|
|
|
11,897,867 |
|
|
|
47.05 |
|
|
|
11,784,577 |
|
|
|
46.60 |
|
| Q4 2016 |
|
|
20,947 |
|
|
|
877,842 |
|
|
|
41.91 |
|
|
|
885,102 |
|
|
|
42.25 |
|
|
|
381,577 |
|
|
|
14,429,718 |
|
|
|
37.82 |
|
|
|
14,603,851 |
|
|
|
38.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
39,764 |
|
|
$ |
2,034,255 |
|
|
$ |
51.16 |
|
|
$ |
2,044,498 |
|
|
$ |
51.42 |
|
|
|
1,071,717 |
|
|
$ |
45,486,194 |
|
|
$ |
42.44 |
|
|
$ |
45,696,171 |
|
|
$ |
42.64 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
33
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE WASHINGTON, DC REGION PROPERTIES
Lease Expirations -
Washington, DC Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
497,525 |
|
|
$ |
29,556,463 |
|
|
$ |
59.41 |
|
|
$ |
29,611,253 |
|
|
$ |
59.52 |
(4) (5) |
|
|
142,785 |
|
|
$ |
3,939,116 |
|
|
$ |
27.59 |
|
|
$ |
3,939,116 |
|
|
$ |
27.59 |
|
| 2016 |
|
|
424,654 |
|
|
|
24,055,488 |
|
|
|
56.65 |
|
|
|
24,638,330 |
|
|
|
58.02 |
(5) |
|
|
33,400 |
|
|
|
768,775 |
|
|
|
23.02 |
|
|
|
787,662 |
|
|
|
23.58 |
|
| 2017 |
|
|
757,251 |
|
|
|
39,391,214 |
|
|
|
52.02 |
|
|
|
40,594,884 |
|
|
|
53.61 |
|
|
|
13,408 |
|
|
|
286,330 |
|
|
|
21.36 |
|
|
|
293,252 |
|
|
|
21.87 |
|
| 2018 |
|
|
466,698 |
|
|
|
24,770,458 |
|
|
|
53.08 |
|
|
|
26,586,874 |
|
|
|
56.97 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2019 |
|
|
902,443 |
|
|
|
44,864,351 |
|
|
|
49.71 |
|
|
|
48,110,668 |
|
|
|
53.31 |
|
|
|
146,028 |
|
|
|
2,756,117 |
|
|
|
18.87 |
|
|
|
2,817,237 |
|
|
|
19.29 |
|
| 2020 |
|
|
1,076,950 |
|
|
|
49,853,604 |
|
|
|
46.29 |
|
|
|
54,511,084 |
|
|
|
50.62 |
|
|
|
79,971 |
|
|
|
1,291,025 |
|
|
|
16.14 |
|
|
|
1,291,025 |
|
|
|
16.14 |
|
| 2021 |
|
|
1,014,927 |
|
|
|
56,199,216 |
|
|
|
55.37 |
|
|
|
64,297,331 |
|
|
|
63.35 |
|
|
|
109,860 |
|
|
|
1,697,118 |
|
|
|
15.45 |
|
|
|
1,817,892 |
|
|
|
16.55 |
|
| 2022 |
|
|
928,999 |
|
|
|
47,099,774 |
|
|
|
50.70 |
|
|
|
55,018,804 |
|
|
|
59.22 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2023 |
|
|
398,814 |
|
|
|
17,843,192 |
|
|
|
44.74 |
|
|
|
21,682,129 |
|
|
|
54.37 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2024 |
|
|
606,295 |
|
|
|
30,029,718 |
|
|
|
49.53 |
|
|
|
35,765,205 |
|
|
|
58.99 |
|
|
|
14,826 |
|
|
|
334,368 |
|
|
|
22.55 |
|
|
|
386,407 |
|
|
|
26.06 |
|
| Thereafter |
|
|
1,208,758 |
|
|
|
77,405,478 |
|
|
|
64.04 |
|
|
|
102,290,322 |
|
|
|
84.62 |
|
|
|
23,439 |
|
|
|
452,293 |
|
|
|
19.30 |
|
|
|
540,892 |
|
|
|
23.08 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
47,039 |
|
|
$ |
2,839,885 |
|
|
$ |
60.37 |
|
|
$ |
2,841,798 |
|
|
$ |
60.41 |
|
|
|
687,349 |
|
|
$ |
36,335,463 |
|
|
$ |
52.86 |
|
|
$ |
36,392,166 |
|
|
$ |
52.95 |
(4) |
| 2016 |
|
|
66,355 |
|
|
|
3,986,324 |
|
|
|
60.08 |
|
|
|
3,987,726 |
|
|
|
60.10 |
|
|
|
524,409 |
|
|
|
28,810,587 |
|
|
|
54.94 |
|
|
|
29,413,718 |
|
|
|
56.09 |
|
| 2017 |
|
|
68,233 |
|
|
|
4,554,563 |
|
|
|
66.75 |
|
|
|
4,704,241 |
|
|
|
68.94 |
|
|
|
838,892 |
|
|
|
44,232,107 |
|
|
|
52.73 |
|
|
|
45,592,377 |
|
|
|
54.35 |
|
| 2018 |
|
|
66,023 |
|
|
|
4,292,963 |
|
|
|
65.02 |
|
|
|
4,443,372 |
|
|
|
67.30 |
|
|
|
532,721 |
|
|
|
29,063,421 |
|
|
|
54.56 |
|
|
|
31,030,246 |
|
|
|
58.25 |
|
| 2019 |
|
|
59,726 |
|
|
|
3,375,826 |
|
|
|
56.52 |
|
|
|
3,486,623 |
|
|
|
58.38 |
|
|
|
1,108,197 |
|
|
|
50,996,295 |
|
|
|
46.02 |
|
|
|
54,414,529 |
|
|
|
49.10 |
|
| 2020 |
|
|
29,233 |
|
|
|
1,786,065 |
|
|
|
61.10 |
|
|
|
1,918,624 |
|
|
|
65.63 |
|
|
|
1,186,154 |
|
|
|
52,930,694 |
|
|
|
44.62 |
|
|
|
57,720,734 |
|
|
|
48.66 |
|
| 2021 |
|
|
57,973 |
|
|
|
3,405,913 |
|
|
|
58.75 |
|
|
|
3,805,970 |
|
|
|
65.65 |
|
|
|
1,182,760 |
|
|
|
61,302,247 |
|
|
|
51.83 |
|
|
|
69,921,193 |
|
|
|
59.12 |
|
| 2022 |
|
|
23,890 |
|
|
|
1,617,607 |
|
|
|
67.71 |
|
|
|
1,865,743 |
|
|
|
78.10 |
|
|
|
952,889 |
|
|
|
48,717,381 |
|
|
|
51.13 |
|
|
|
56,884,547 |
|
|
|
59.70 |
|
| 2023 |
|
|
55,846 |
|
|
|
2,485,903 |
|
|
|
44.51 |
|
|
|
2,824,640 |
|
|
|
50.58 |
|
|
|
454,660 |
|
|
|
20,329,095 |
|
|
|
44.71 |
|
|
|
24,506,769 |
|
|
|
53.90 |
|
| 2024 |
|
|
8,751 |
|
|
|
473,202 |
|
|
|
54.07 |
|
|
|
526,034 |
|
|
|
60.11 |
|
|
|
629,872 |
|
|
|
30,837,288 |
|
|
|
48.96 |
|
|
|
36,677,646 |
|
|
|
58.23 |
|
| Thereafter |
|
|
150,978 |
|
|
|
4,657,995 |
|
|
|
30.85 |
|
|
|
5,716,480 |
|
|
|
37.86 |
|
|
|
1,383,175 |
|
|
|
82,515,766 |
|
|
|
59.66 |
|
|
|
108,547,695 |
|
|
|
78.48 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes 83,136 square feet of Sensitive Compartmented Information Facility (SCIF) space. Excluding the SCIF space from 2015 and 2016, the current and future expiring rental rate would be (i) $47.83 per square foot
and $47.92 per square foot, respectively, for 2015 and (ii) $46.10 per square foot and $47.36 per square foot, respectively, for 2016. |
34
Boston Properties, Inc.
First Quarter 2015
IN-SERVICE WASHINGTON, DC REGION PROPERTIES
Quarterly Lease Expirations - Washington, DC Region (1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
OFFICE |
|
|
OFFICE/TECHNICAL |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
22,270 |
|
|
$ |
1,209,060 |
|
|
$ |
54.29 |
|
|
$ |
1,209,060 |
|
|
$ |
54.29 |
(4) |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2015 |
|
|
80,710 |
|
|
|
4,767,619 |
|
|
|
59.07 |
|
|
|
4,792,065 |
|
|
|
59.37 |
(5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2015 |
|
|
100,186 |
|
|
|
7,575,878 |
|
|
|
75.62 |
|
|
|
7,601,990 |
|
|
|
75.88 |
(5) |
|
|
14,338 |
|
|
|
317,625 |
|
|
|
22.15 |
|
|
|
317,625 |
|
|
|
22.15 |
|
| Q4 2015 |
|
|
294,359 |
|
|
|
16,003,905 |
|
|
|
54.37 |
|
|
|
16,008,137 |
|
|
|
54.38 |
|
|
|
128,447 |
|
|
|
3,621,491 |
|
|
|
28.19 |
|
|
|
3,621,491 |
|
|
|
28.19 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
497,525 |
|
|
$ |
29,556,463 |
|
|
$ |
59.41 |
|
|
$ |
29,611,253 |
|
|
$ |
59.52 |
|
|
|
142,785 |
|
|
$ |
3,939,116 |
|
|
$ |
27.59 |
|
|
$ |
3,939,116 |
|
|
$ |
27.59 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
101,684 |
|
|
$ |
3,950,092 |
|
|
$ |
38.85 |
|
|
$ |
3,960,751 |
|
|
$ |
38.95 |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
| Q2 2016 |
|
|
240,325 |
|
|
|
16,332,190 |
|
|
|
67.96 |
|
|
|
16,619,305 |
|
|
|
69.15 |
(5) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Q3 2016 |
|
|
32,067 |
|
|
|
1,157,322 |
|
|
|
36.09 |
|
|
|
1,355,521 |
|
|
|
42.27 |
|
|
|
33,400 |
|
|
|
768,775 |
|
|
|
23.02 |
|
|
|
787,662 |
|
|
|
23.58 |
|
| Q4 2016 |
|
|
50,578 |
|
|
|
2,615,885 |
|
|
|
51.72 |
|
|
|
2,702,753 |
|
|
|
53.44 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
424,654 |
|
|
$ |
24,055,488 |
|
|
$ |
56.65 |
|
|
$ |
24,638,330 |
|
|
$ |
58.02 |
|
|
|
33,400 |
|
|
$ |
768,775 |
|
|
$ |
23.02 |
|
|
$ |
787,662 |
|
|
$ |
23.58 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
RETAIL |
|
|
Total Property Types |
|
| Lease Expiration
by Quarter |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2015 |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
22,270 |
|
|
$ |
1,209,060 |
|
|
$ |
54.29 |
|
|
$ |
1,209,060 |
|
|
$ |
54.29 |
(4) |
| Q2 2015 |
|
|
6,550 |
|
|
|
413,364 |
|
|
|
63.11 |
|
|
|
413,364 |
|
|
|
63.11 |
|
|
|
87,260 |
|
|
|
5,180,984 |
|
|
|
59.37 |
|
|
|
5,205,429 |
|
|
|
59.65 |
|
| Q3 2015 |
|
|
26,842 |
|
|
|
1,625,461 |
|
|
|
60.56 |
|
|
|
1,625,461 |
|
|
|
60.56 |
|
|
|
141,366 |
|
|
|
9,518,964 |
|
|
|
67.34 |
|
|
|
9,545,076 |
|
|
|
67.52 |
|
| Q4 2015 |
|
|
13,647 |
|
|
|
801,060 |
|
|
|
58.70 |
|
|
|
802,973 |
|
|
|
58.84 |
|
|
|
436,453 |
|
|
|
20,426,456 |
|
|
|
46.80 |
|
|
|
20,432,601 |
|
|
|
46.82 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2015 |
|
|
47,039 |
|
|
$ |
2,839,885 |
|
|
$ |
60.37 |
|
|
$ |
2,841,798 |
|
|
$ |
60.41 |
|
|
|
687,349 |
|
|
$ |
36,335,463 |
|
|
$ |
52.86 |
|
|
$ |
36,392,166 |
|
|
$ |
52.95 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Q1 2016 |
|
|
21,594 |
|
|
$ |
1,324,145 |
|
|
$ |
61.32 |
|
|
$ |
1,316,775 |
|
|
$ |
60.98 |
|
|
|
123,278 |
|
|
$ |
5,274,236 |
|
|
$ |
42.78 |
|
|
$ |
5,277,526 |
|
|
$ |
42.81 |
|
| Q2 2016 |
|
|
12,408 |
|
|
|
724,913 |
|
|
|
58.42 |
|
|
|
725,331 |
|
|
|
58.46 |
|
|
|
252,733 |
|
|
|
17,057,103 |
|
|
|
67.49 |
|
|
|
17,344,637 |
|
|
|
68.63 |
|
| Q3 2016 |
|
|
6,010 |
|
|
|
345,145 |
|
|
|
57.43 |
|
|
|
349,762 |
|
|
|
58.20 |
|
|
|
71,477 |
|
|
|
2,271,243 |
|
|
|
31.78 |
|
|
|
2,492,945 |
|
|
|
34.88 |
|
| Q4 2016 |
|
|
26,343 |
|
|
|
1,592,120 |
|
|
|
60.44 |
|
|
|
1,595,858 |
|
|
|
60.58 |
|
|
|
76,921 |
|
|
|
4,208,005 |
|
|
|
54.71 |
|
|
|
4,298,611 |
|
|
|
55.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total 2016 |
|
|
66,355 |
|
|
$ |
3,986,324 |
|
|
$ |
60.08 |
|
|
$ |
3,987,726 |
|
|
$ |
60.10 |
|
|
|
524,409 |
|
|
$ |
28,810,587 |
|
|
$ |
54.94 |
|
|
$ |
29,413,718 |
|
|
$ |
56.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes 8,062, 27,967, and 47,107 square feet of Sensitive Compartmented Information Facility (SCIF) space in Q2 2015, Q3 2015, and Q2 2016, respectively. Excluding the SCIF space, the current and future expiring
rental rate would be $50.07 and $50.41, $48.81 and $49.17, and $49.29 and $50.77, respectively. |
35
Boston Properties, Inc.
First Quarter 2015
CBD PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Boston |
|
|
San Francisco |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
290,228 |
|
|
$ |
19,616,437 |
|
|
$ |
67.59 |
|
|
$ |
19,741,805 |
|
|
$ |
68.02 |
(4)(5) |
|
|
170,178 |
|
|
$ |
9,117,299 |
|
|
$ |
53.58 |
|
|
$ |
9,086,046 |
|
|
$ |
53.39 |
(4) |
| 2016 |
|
|
407,331 |
|
|
|
31,624,243 |
|
|
|
77.64 |
|
|
|
32,515,189 |
|
|
|
79.82 |
(6) |
|
|
764,140 |
|
|
|
38,713,493 |
|
|
|
50.66 |
|
|
|
38,673,807 |
|
|
|
50.61 |
|
| 2017 |
|
|
259,269 |
|
|
|
16,002,688 |
|
|
|
61.72 |
|
|
|
16,232,494 |
|
|
|
62.61 |
|
|
|
305,636 |
|
|
|
16,456,979 |
|
|
|
53.85 |
|
|
|
16,752,531 |
|
|
|
54.81 |
|
| 2018 |
|
|
264,749 |
|
|
|
13,994,475 |
|
|
|
52.86 |
|
|
|
14,287,859 |
|
|
|
53.97 |
|
|
|
202,170 |
|
|
|
11,319,915 |
|
|
|
55.99 |
|
|
|
12,215,819 |
|
|
|
60.42 |
|
| 2019 |
|
|
856,857 |
|
|
|
46,402,787 |
|
|
|
54.15 |
|
|
|
47,262,345 |
|
|
|
55.16 |
|
|
|
235,337 |
|
|
|
12,845,592 |
|
|
|
54.58 |
|
|
|
13,600,282 |
|
|
|
57.79 |
|
| 2020 |
|
|
414,619 |
|
|
|
21,618,399 |
|
|
|
52.14 |
|
|
|
25,050,952 |
|
|
|
60.42 |
|
|
|
552,745 |
|
|
|
33,543,723 |
|
|
|
60.69 |
|
|
|
35,676,040 |
|
|
|
64.54 |
|
| 2021 |
|
|
386,106 |
|
|
|
20,855,414 |
|
|
|
54.01 |
|
|
|
21,799,398 |
|
|
|
56.46 |
|
|
|
243,012 |
|
|
|
12,293,497 |
|
|
|
50.59 |
|
|
|
14,610,474 |
|
|
|
60.12 |
|
| 2022 |
|
|
1,066,725 |
|
|
|
56,777,500 |
|
|
|
53.23 |
|
|
|
63,906,861 |
|
|
|
59.91 |
|
|
|
203,973 |
|
|
|
9,894,837 |
|
|
|
48.51 |
|
|
|
11,033,985 |
|
|
|
54.10 |
|
| 2023 |
|
|
345,335 |
|
|
|
23,414,126 |
|
|
|
67.80 |
|
|
|
25,988,165 |
|
|
|
75.25 |
|
|
|
182,555 |
|
|
|
10,216,900 |
|
|
|
55.97 |
|
|
|
11,816,776 |
|
|
|
64.73 |
|
| 2024 |
|
|
272,428 |
|
|
|
15,394,216 |
|
|
|
56.51 |
|
|
|
17,121,048 |
|
|
|
62.85 |
|
|
|
344,018 |
|
|
|
18,598,568 |
|
|
|
54.06 |
|
|
|
20,707,993 |
|
|
|
60.19 |
|
| Thereafter |
|
|
3,338,174 |
|
|
|
192,675,831 |
|
|
|
57.72 |
|
|
|
232,156,577 |
|
|
|
69.55 |
|
|
|
581,736 |
|
|
|
33,372,126 |
|
|
|
57.37 |
|
|
|
44,938,635 |
|
|
|
77.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
New York |
|
|
Washington, DC |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
84,686 |
|
|
$ |
7,494,857 |
|
|
$ |
88.50 |
|
|
$ |
7,973,413 |
|
|
$ |
94.15 |
(4) |
|
|
312,232 |
|
|
$ |
18,080,418 |
|
|
$ |
57.91 |
|
|
$ |
18,108,426 |
|
|
$ |
58.00 |
(4) |
| 2016 |
|
|
509,527 |
|
|
|
51,703,925 |
|
|
|
101.47 |
|
|
|
51,706,559 |
|
|
|
101.48 |
|
|
|
83,843 |
|
|
|
4,700,863 |
|
|
|
56.07 |
|
|
|
4,833,857 |
|
|
|
57.65 |
|
| 2017 |
|
|
1,169,979 |
|
|
|
125,391,473 |
|
|
|
107.17 |
|
|
|
127,132,459 |
|
|
|
108.66 |
|
|
|
587,329 |
|
|
|
31,356,253 |
|
|
|
53.39 |
|
|
|
32,051,515 |
|
|
|
54.57 |
|
| 2018 |
|
|
337,167 |
|
|
|
46,002,537 |
|
|
|
136.44 |
|
|
|
46,573,357 |
|
|
|
138.13 |
|
|
|
168,471 |
|
|
|
10,771,911 |
|
|
|
63.94 |
|
|
|
11,460,524 |
|
|
|
68.03 |
|
| 2019 |
|
|
345,589 |
|
|
|
35,943,244 |
|
|
|
104.01 |
|
|
|
36,250,218 |
|
|
|
104.89 |
|
|
|
420,057 |
|
|
|
25,460,991 |
|
|
|
60.61 |
|
|
|
27,809,522 |
|
|
|
66.20 |
|
| 2020 |
|
|
1,369,170 |
|
|
|
117,765,397 |
|
|
|
86.01 |
|
|
|
123,575,057 |
|
|
|
90.26 |
|
|
|
454,283 |
|
|
|
24,160,108 |
|
|
|
53.18 |
|
|
|
26,685,945 |
|
|
|
58.74 |
|
| 2021 |
|
|
233,365 |
|
|
|
30,130,188 |
|
|
|
129.11 |
|
|
|
33,505,034 |
|
|
|
143.57 |
|
|
|
527,425 |
|
|
|
33,072,779 |
|
|
|
62.71 |
|
|
|
37,885,164 |
|
|
|
71.83 |
|
| 2022 |
|
|
830,244 |
|
|
|
75,719,764 |
|
|
|
91.20 |
|
|
|
81,828,927 |
|
|
|
98.56 |
|
|
|
315,538 |
|
|
|
22,066,287 |
|
|
|
69.93 |
|
|
|
25,018,601 |
|
|
|
79.29 |
|
| 2023 |
|
|
106,108 |
|
|
|
13,287,587 |
|
|
|
125.23 |
|
|
|
15,215,358 |
|
|
|
143.40 |
|
|
|
57,290 |
|
|
|
3,778,274 |
|
|
|
65.95 |
|
|
|
4,591,944 |
|
|
|
80.15 |
|
| 2024 |
|
|
688,707 |
|
|
|
61,895,243 |
|
|
|
89.87 |
|
|
|
69,339,957 |
|
|
|
100.68 |
|
|
|
182,005 |
|
|
|
11,521,116 |
|
|
|
63.30 |
|
|
|
13,835,391 |
|
|
|
76.02 |
|
| Thereafter |
|
|
2,982,339 |
|
|
|
285,186,354 |
|
|
|
95.63 |
|
|
|
393,591,910 |
|
|
|
131.97 |
|
|
|
915,565 |
|
|
|
64,718,073 |
|
|
|
70.69 |
|
|
|
85,925,633 |
|
|
|
93.85 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Excluding retail space current and future expiring rents would be $48.49 per square foot and $48.50 per square foot, respectively, in 2015. |
| (6) |
Includes 225,532 square feet of research/laboratory space. Excluding the research/laboratory space and the retail space, current and future expiring rents would be $52.88 per square foot and $58.11 per square foot,
respectively, in 2016. This 225,532 square feet of research/laboratory space is subject to a tenant purchase option that was exercised on October 22, 2014 and is expected to close on February 1, 2016. |
36
Boston Properties, Inc.
First Quarter 2015
SUBURBAN PROPERTIES
Lease Expirations
(1) (2) (3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Boston |
|
|
San Francisco |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
352,297 |
|
|
$ |
11,013,897 |
|
|
$ |
31.26 |
|
|
$ |
11,144,735 |
|
|
$ |
31.63 |
(4) |
|
|
225,905 |
|
|
$ |
8,037,473 |
|
|
$ |
35.58 |
|
|
$ |
8,186,008 |
|
|
$ |
36.24 |
|
| 2016 |
|
|
552,281 |
|
|
|
19,226,159 |
|
|
|
34.81 |
|
|
|
19,634,154 |
|
|
|
35.55 |
|
|
|
307,577 |
|
|
|
6,772,701 |
|
|
|
22.02 |
|
|
|
7,022,363 |
|
|
|
22.83 |
|
| 2017 |
|
|
536,366 |
|
|
|
17,282,534 |
|
|
|
32.22 |
|
|
|
17,645,934 |
|
|
|
32.90 |
|
|
|
364,939 |
|
|
|
12,648,126 |
|
|
|
34.66 |
|
|
|
13,233,062 |
|
|
|
36.26 |
|
| 2018 |
|
|
317,365 |
|
|
|
10,325,336 |
|
|
|
32.53 |
|
|
|
10,767,570 |
|
|
|
33.93 |
|
|
|
36,918 |
|
|
|
1,343,865 |
|
|
|
36.40 |
|
|
|
1,582,991 |
|
|
|
42.88 |
|
| 2019 |
|
|
459,049 |
|
|
|
17,310,953 |
|
|
|
37.71 |
|
|
|
17,763,834 |
|
|
|
38.70 |
|
|
|
372,872 |
|
|
|
14,503,028 |
|
|
|
38.90 |
|
|
|
16,575,840 |
|
|
|
44.45 |
|
| 2020 |
|
|
141,155 |
|
|
|
4,333,800 |
|
|
|
30.70 |
|
|
|
4,802,280 |
|
|
|
34.02 |
|
|
|
72,824 |
|
|
|
3,097,161 |
|
|
|
42.53 |
|
|
|
3,444,245 |
|
|
|
47.30 |
|
| 2021 |
|
|
451,644 |
|
|
|
11,629,044 |
|
|
|
25.75 |
|
|
|
12,346,708 |
|
|
|
27.34 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| 2022 |
|
|
623,599 |
|
|
|
23,051,857 |
|
|
|
36.97 |
|
|
|
23,593,379 |
|
|
|
37.83 |
|
|
|
290,448 |
|
|
|
11,066,375 |
|
|
|
38.10 |
|
|
|
12,871,454 |
|
|
|
44.32 |
|
| 2023 |
|
|
23,197 |
|
|
|
681,817 |
|
|
|
29.39 |
|
|
|
774,605 |
|
|
|
33.39 |
|
|
|
40,657 |
|
|
|
2,047,752 |
|
|
|
50.37 |
|
|
|
2,800,187 |
|
|
|
68.87 |
|
| 2024 |
|
|
263,938 |
|
|
|
9,981,054 |
|
|
|
37.82 |
|
|
|
11,247,351 |
|
|
|
42.61 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Thereafter |
|
|
523,723 |
|
|
|
22,307,552 |
|
|
|
42.59 |
|
|
|
26,145,163 |
|
|
|
49.92 |
|
|
|
5,642 |
|
|
|
186,186 |
|
|
|
0.36 |
|
|
|
250,218 |
|
|
|
44.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
New York |
|
|
Washington, DC |
|
| Year of Lease
Expiration |
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
Rentable Square
Footage Subject to
Expiring Leases |
|
|
Current Annualized
Revenues Under
Expiring Leases |
|
|
Per
Square
Foot |
|
|
Annualized
Revenues Under
Expiring Leases
with future step-ups |
|
|
Per
Square
Foot |
|
|
|
|
|
|
|
|
|
|
|
|
| 2015 |
|
|
202,994 |
|
|
$ |
6,869,486 |
|
|
$ |
33.84 |
|
|
$ |
6,869,486 |
|
|
$ |
33.84 |
(4) |
|
|
375,117 |
|
|
$ |
18,255,046 |
|
|
$ |
48.66 |
|
|
$ |
18,283,740 |
|
|
$ |
48.74 |
(4)(5) |
| 2016 |
|
|
203,312 |
|
|
|
6,917,564 |
|
|
|
34.02 |
|
|
|
7,074,900 |
|
|
|
34.80 |
|
|
|
440,566 |
|
|
|
24,109,724 |
|
|
|
54.72 |
|
|
|
24,579,861 |
|
|
|
55.79 |
(5) |
| 2017 |
|
|
158,733 |
|
|
|
5,725,359 |
|
|
|
36.07 |
|
|
|
5,778,895 |
|
|
|
36.41 |
|
|
|
251,563 |
|
|
|
12,875,855 |
|
|
|
51.18 |
|
|
|
13,540,863 |
|
|
|
53.83 |
|
| 2018 |
|
|
217,514 |
|
|
|
7,305,702 |
|
|
|
33.59 |
|
|
|
7,508,291 |
|
|
|
34.52 |
|
|
|
364,250 |
|
|
|
18,291,511 |
|
|
|
50.22 |
|
|
|
19,569,722 |
|
|
|
53.73 |
|
| 2019 |
|
|
178,069 |
|
|
|
6,045,465 |
|
|
|
33.95 |
|
|
|
6,473,294 |
|
|
|
36.35 |
|
|
|
688,140 |
|
|
|
25,535,304 |
|
|
|
37.11 |
|
|
|
26,605,006 |
|
|
|
38.66 |
|
| 2020 |
|
|
282,167 |
|
|
|
9,526,200 |
|
|
|
33.76 |
|
|
|
10,149,748 |
|
|
|
35.97 |
|
|
|
731,871 |
|
|
|
28,770,586 |
|
|
|
39.31 |
|
|
|
31,034,788 |
|
|
|
42.40 |
|
| 2021 |
|
|
74,993 |
|
|
|
2,447,077 |
|
|
|
32.63 |
|
|
|
2,600,403 |
|
|
|
34.68 |
|
|
|
655,335 |
|
|
|
28,229,468 |
|
|
|
43.08 |
|
|
|
32,036,030 |
|
|
|
48.88 |
|
| 2022 |
|
|
29,737 |
|
|
|
941,274 |
|
|
|
31.65 |
|
|
|
1,000,747 |
|
|
|
33.65 |
|
|
|
637,351 |
|
|
|
26,651,094 |
|
|
|
41.82 |
|
|
|
31,865,946 |
|
|
|
50.00 |
|
| 2023 |
|
|
8,299 |
|
|
|
265,793 |
|
|
|
32.03 |
|
|
|
282,391 |
|
|
|
34.03 |
|
|
|
397,370 |
|
|
|
16,550,821 |
|
|
|
41.65 |
|
|
|
19,914,825 |
|
|
|
50.12 |
|
| 2024 |
|
|
384,402 |
|
|
|
13,349,268 |
|
|
|
34.73 |
|
|
|
14,144,914 |
|
|
|
36.80 |
|
|
|
447,867 |
|
|
|
19,316,172 |
|
|
|
43.13 |
|
|
|
22,842,255 |
|
|
|
51.00 |
|
| Thereafter |
|
|
211,605 |
|
|
|
6,974,128 |
|
|
|
32.96 |
|
|
|
6,665,464 |
|
|
|
31.50 |
|
|
|
467,610 |
|
|
|
17,797,692 |
|
|
|
38.06 |
|
|
|
22,622,062 |
|
|
|
48.38 |
|
| (1) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (2) |
Includes 100% of joint venture properties. Does not include residential units and hotel. |
| (3) |
Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the
year in which the future lease expires. |
| (4) |
Includes square feet expiring on the last day of the current quarter. |
| (5) |
Includes 83,136 square feet of Sensitive Compartmented Information Facility (SCIF) space. Excluding the SCIF space from 2015 and 2016, the current and future expiring rental rate would be (i) $38.56 per square foot
and $38.64 per square foot, respectively, for 2015 and (ii) $43.97 per square foot and $45.17 per square foot, respectively, for 2016. |
37
Boston Properties, Inc.
First Quarter 2015
RESIDENTIAL and HOTEL PERFORMANCE
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Rates and Occupancy |
|
First Quarter
2015 |
|
|
First Quarter
2014 |
|
|
Percent
Change |
|
| The Avant at Reston Town Center (359 units) (1) |
|
|
|
|
|
|
|
|
|
|
|
|
| Reston, VA |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Monthly Rental Rate (2) |
|
$ |
2,244 |
|
|
$ |
1,875 |
|
|
|
19.7 |
% |
| Average Rental Rate Per Occupied Square Foot (2) |
|
$ |
2.45 |
|
|
$ |
2.04 |
|
|
|
20.1 |
% |
| Average Physical Occupancy (2) (3) |
|
|
80.1 |
% |
|
|
10.5 |
% |
|
|
662.9 |
% |
| Average Economic Occupancy (3) |
|
|
76.9 |
% |
|
|
7.5 |
% |
|
|
925.3 |
% |
|
|
|
|
| The Lofts at Atlantic Wharf (86 units) |
|
|
|
|
|
|
|
|
|
|
|
|
| Boston, MA |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Monthly Rental Rate (4) |
|
$ |
4,012 |
|
|
$ |
3,927 |
|
|
|
2.2 |
% |
| Average Rental Rate Per Occupied Square Foot (4) |
|
$ |
4.44 |
|
|
$ |
4.37 |
|
|
|
1.6 |
% |
| Average Physical Occupancy (3) (4) |
|
|
98.1 |
% |
|
|
96.9 |
% |
|
|
1.2 |
% |
| Average Economic Occupancy (3) |
|
|
98.8 |
% |
|
|
97.7 |
% |
|
|
1.1 |
% |
|
|
|
|
| Boston Marriott Cambridge (433 rooms) |
|
|
|
|
|
|
|
|
|
|
|
|
| Cambridge, MA |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Occupancy |
|
|
78.7 |
% |
|
|
77.7 |
% |
|
|
1.3 |
% |
| Average Daily Rate |
|
$ |
223.34 |
|
|
$ |
199.88 |
|
|
|
11.7 |
% |
| Revenue per available room |
|
$ |
175.86 |
|
|
$ |
155.78 |
|
|
|
12.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (in thousands) |
|
Residential |
|
|
Hotel |
|
| |
|
First Quarter
2015 |
|
|
First Quarter
2014 |
|
|
Percent
Change |
|
|
First Quarter
2015 |
|
|
First Quarter
2014 |
|
|
Percent
Change |
|
| Rental Revenue |
|
$ |
6,854 |
(5) |
|
$ |
5,682 |
(5) |
|
|
20.6 |
% |
|
$ |
9,085 |
|
|
$ |
8,193 |
|
|
|
10.9 |
% |
| Operating expenses and real estate taxes |
|
|
3,546 |
|
|
|
3,762 |
|
|
|
(5.7 |
%) |
|
|
7,576 |
|
|
|
6,797 |
|
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income |
|
$ |
3,308 |
(5) |
|
$ |
1,920 |
(5) |
|
|
72.3 |
% |
|
$ |
1,509 |
|
|
$ |
1,396 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Less: Straight line rent and fair value lease revenue |
|
|
34 |
|
|
|
86 |
|
|
|
(60.5 |
%) |
|
|
1 |
|
|
|
1 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental Revenue - cash basis |
|
|
6,820 |
|
|
|
5,596 |
|
|
|
21.9 |
% |
|
|
9,084 |
|
|
|
8,192 |
|
|
|
10.9 |
% |
| Less: Operating expenses and real estate taxes |
|
|
3,546 |
|
|
|
3,762 |
|
|
|
(5.7 |
%) |
|
|
7,576 |
|
|
|
6,797 |
|
|
|
11.5 |
% |
| Add: Straight line ground rent expense |
|
|
79 |
|
|
|
527 |
|
|
|
(85.0 |
%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income - cash basis |
|
$ |
3,353 |
|
|
$ |
2,361 |
|
|
|
42.0 |
% |
|
$ |
1,508 |
|
|
$ |
1,395 |
|
|
|
8.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Not included in Same Property analysis. Property is a new development and lease up commenced December 2013. |
| (2) |
Excludes 26,179 square feet of retail space which is 100% leased. |
| (3) |
For disclosures related to our definition of Average Physical and Average Economic Occupancy, see page 50. |
| (4) |
Excludes 9,617 square feet of retail space which is 100% leased. |
| (5) |
Includes 85,324 square feet of retail space which had revenue of approximately $1.1 million and $981,000 for the quarter ended March 31, 2015 and March 31, 2014, respectively. |
38
Boston Properties, Inc.
First Quarter 2015
OCCUPANCY ANALYSIS
Same Property Occupancy(1) - By Location
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CBD |
|
|
Suburban |
|
|
Total |
|
| Location |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
|
| Boston |
|
|
88.0 |
% |
|
|
95.5 |
% |
|
|
89.5 |
% |
|
|
85.8 |
% |
|
|
88.5 |
% |
|
|
92.1 |
% |
| New York |
|
|
96.6 |
% |
|
|
97.5 |
% |
|
|
80.5 |
% |
|
|
79.8 |
% |
|
|
92.9 |
% |
|
|
93.3 |
% |
| San Francisco |
|
|
94.6 |
% |
|
|
94.4 |
% |
|
|
77.9 |
% |
|
|
72.4 |
% |
|
|
87.9 |
% |
|
|
85.6 |
% |
| Washington, DC |
|
|
96.1 |
% |
|
|
94.7 |
% |
|
|
92.2 |
% |
|
|
94.9 |
% |
|
|
93.8 |
% |
|
|
94.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
93.1 |
% |
|
|
95.9 |
% |
|
|
87.4 |
% |
|
|
86.4 |
% |
|
|
90.9 |
% |
|
|
92.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Same Property Occupancy(1) - By Type of Property
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
CBD |
|
|
Suburban |
|
|
Total |
|
| |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
|
|
|
|
|
|
| Total Office Portfolio |
|
|
93.1 |
% |
|
|
95.8 |
% |
|
|
88.0 |
% |
|
|
87.0 |
% |
|
|
91.2 |
% |
|
|
92.6 |
% |
| Total Office/Technical Portfolio |
|
|
100.0 |
% |
|
|
100.0 |
% |
|
|
81.4 |
% |
|
|
80.7 |
% |
|
|
84.7 |
% |
|
|
84.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
93.1 |
% |
|
|
95.9 |
% |
|
|
87.4 |
% |
|
|
86.4 |
% |
|
|
90.9 |
% |
|
|
92.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
For disclosures related to our definition of Same Property, see page 49. |
39
Boston Properties, Inc.
First Quarter 2015
SAME PROPERTY PERFORMANCE
Office, Office/Technical and
Hotel & Residential Properties
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Office |
|
|
Office/Technical |
|
|
Hotel & Residential (1) |
|
|
Total |
|
| Number of Properties |
|
|
121 |
|
|
|
31 |
|
|
|
2 |
|
|
|
154 |
|
| Square feet |
|
|
38,190,903 |
|
|
|
1,701,412 |
|
|
|
421,357 |
|
|
|
40,313,672 |
|
| Percent of properties in-service |
|
|
96.2 |
% |
|
|
100.0 |
% |
|
|
54.2 |
% |
|
|
95.6 |
% |
| Occupancy @ 3/31/2014 |
|
|
92.6 |
% |
|
|
84.1 |
% |
|
|
N/A |
|
|
|
92.2 |
% |
| Occupancy @ 3/31/2015 |
|
|
91.2 |
% |
|
|
84.7 |
% |
|
|
N/A |
|
|
|
90.9 |
% |
| Percent change from 1st quarter 2015 over 1st quarter 2014 (2): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue |
|
|
2.6 |
% |
|
|
9.2 |
% |
|
|
9.7 |
% |
|
|
|
|
| Operating expenses and real estate taxes |
|
|
5.3 |
% |
|
|
9.1 |
% |
|
|
11.6 |
% |
|
|
|
|
| Consolidated Net Operating Income (3) - excluding hotel & residential |
|
|
0.9 |
% |
|
|
9.3 |
% |
|
|
|
|
|
|
1.2 |
% (2) |
| Consolidated Net Operating Income (3) - Hotel & residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.1 |
% (2) |
| Net Operating Income - BXP’s share of unconsolidated joint ventures (3) (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
34.5 |
% (2) |
| Combined Net Operating Income (3) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.2 |
% |
|
|
|
|
|
| Rental revenue - cash basis |
|
|
1.8 |
% |
|
|
7.5 |
% |
|
|
9.7 |
% |
|
|
|
|
| Consolidated Net Operating Income (3) - cash basis (5) excluding hotel & residential |
|
|
(0.4 |
%) |
|
|
6.8 |
% |
|
|
|
|
|
|
(0.2 |
%) (2) |
| Consolidated Net Operating Income (3) - cash basis (5) - Hotel & residential |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3.2 |
% (2) |
| Net Operating Income - cash basis (5) - BXP’s share of unconsolidated joint ventures |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
40.2 |
% (2) |
| Combined Net Operating Income (3) - cash basis (5) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.1 |
% |
Same Property Lease Analysis - quarter ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Office |
|
|
Office/Technical |
|
|
Total |
|
| Vacant space available @ 1/1/2015 (sf) |
|
|
2,787,350 |
|
|
|
168,385 |
|
|
|
2,955,735 |
|
| Square footage of leases expiring or terminated 1/1/2015-3/31/2015 |
|
|
1,933,294 |
|
|
|
27,639 |
|
|
|
1,960,933 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total space for lease (sf) |
|
|
4,720,644 |
|
|
|
196,024 |
|
|
|
4,916,668 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| New tenants (sf) |
|
|
449,612 |
|
|
|
— |
|
|
|
449,612 |
|
| Renewals (sf) |
|
|
825,348 |
|
|
|
27,639 |
|
|
|
852,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total space leased (sf) |
|
|
1,274,960 |
|
|
|
27,639 |
|
|
|
1,302,599 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Space available @ 3/31/2015 (sf) |
|
|
3,445,684 |
|
|
|
168,385 |
|
|
|
3,614,069 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (increase)/decrease in available space (sf) |
|
|
(658,334 |
) |
|
|
— |
|
|
|
(658,334 |
) |
|
|
|
|
| Second generation leasing information: (6) |
|
|
|
|
|
|
|
|
|
|
|
|
| Leases commencing during the period (sf) |
|
|
1,261,753 |
|
|
|
27,639 |
|
|
|
1,289,392 |
|
| Average lease term (months) |
|
|
105 |
|
|
|
111 |
|
|
|
105 |
|
| Average free rent period (days) |
|
|
42 |
|
|
|
— |
|
|
|
41 |
|
| Total transaction costs per square foot (7) |
|
$ |
43.27 |
|
|
$ |
19.00 |
|
|
$ |
42.75 |
|
| Increase (decrease) in gross rents (8) |
|
|
(2.21 |
%) |
|
|
(4.23 |
%) |
|
|
(2.23 |
%) |
| Increase (decrease) in net rents (9) |
|
|
(4.43 |
%) |
|
|
(5.29 |
%) |
|
|
(4.44 |
%) |
| (1) |
Includes revenue and expenses from retail tenants at the hotel and residential properties. |
| (2) |
See page 42 for a quantitative reconciliation of Same Property Net Operating Income (NOI) by reportable segment. |
| (3) |
For a quantitative reconciliation of NOI to Net income attributable to Boston Properties, Inc., see page 41. For disclosures relating to our use of Combined NOI and Consolidated NOI, see page 49. |
| (4) |
For disclosures related to the calculation of NOI from unconsolidated joint ventures, see page 17. |
| (5) |
For a quantitative reconciliation of NOI to NOI on a cash basis, see page 41. |
| (6) |
Second generation leases are defined as leases for space that had previously been under lease by the Company. Of the 1,289,392 square feet of second generation leases that commenced in Q1 2015, leases for 862,430 square
feet were signed in prior periods. |
| (7) |
Total transaction costs include tenant improvements and leasing commissions and exclude free rent concessions. |
| (8) |
Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 1,119,171 square feet of second generation leases (1) that had been occupied within the
prior 12 months and (2) for which the new lease term is greater than six months. |
| (9) |
Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,119,171 square feet of second generation leases (1) that had been occupied within the prior
12 months and (2) for which the new lease term is greater than six months. |
40
Boston Properties, Inc.
First Quarter 2015
Reconciliation of Net Operating Income to Net Income
|
|
|
|
|
|
|
|
|
| |
|
For the three months ended |
|
| |
|
March 31, 2015 |
|
|
March 31, 2014 |
|
| |
|
(in thousands) |
|
|
|
|
| Net income attributable to Boston Properties, Inc. |
|
$ |
173,771 |
|
|
$ |
56,623 |
|
| Net income attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|
| Noncontrolling interest - common units of the Operating Partnership |
|
|
20,188 |
|
|
|
6,160 |
|
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
3 |
|
|
|
619 |
|
| Noncontrolling interest in property partnerships (1) |
|
|
15,208 |
|
|
|
4,354 |
|
| Gains on sales of real estate |
|
|
(95,084 |
) |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
|
114,086 |
|
|
|
67,756 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
108,757 |
|
|
|
113,554 |
|
| Depreciation and amortization |
|
|
154,223 |
|
|
|
154,270 |
|
| Transaction costs |
|
|
327 |
|
|
|
437 |
|
| General and administrative expense |
|
|
28,791 |
|
|
|
29,905 |
|
|
|
|
| Subtract: |
|
|
|
|
|
|
|
|
| Gains from investments in securities |
|
|
(393 |
) |
|
|
(286 |
) |
| Interest and other income |
|
|
(1,407 |
) |
|
|
(1,311 |
) |
| Income from unconsolidated joint ventures |
|
|
(14,834 |
) |
|
|
(2,816 |
) |
| Development and management services income |
|
|
(5,328 |
) |
|
|
(5,216 |
) |
|
|
|
|
|
|
|
|
|
| Consolidated Net Operating Income |
|
|
384,222 |
|
|
|
356,293 |
|
| Net Operating Income from unconsolidated joint ventures (BXP’s share) (2) |
|
|
14,586 |
|
|
|
10,918 |
|
|
|
|
|
|
|
|
|
|
| Combined Net Operating Income |
|
$ |
398,808 |
|
|
$ |
367,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Same Property Net Operating Income |
|
|
367,901 |
|
|
|
359,963 |
|
| Net Operating Income from non Same Properties (3) |
|
|
15,983 |
|
|
|
6,129 |
|
| Termination income |
|
|
14,924 |
|
|
|
1,119 |
|
|
|
|
|
|
|
|
|
|
| Combined Net Operating Income |
|
$ |
398,808 |
|
|
$ |
367,211 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Same Property Net Operating Income |
|
|
367,901 |
|
|
|
359,963 |
|
| Subtract: |
|
|
|
|
|
|
|
|
| Straight-line rent and fair value lease revenue |
|
|
(26,376 |
) |
|
|
(19,285 |
) |
| Add: |
|
|
|
|
|
|
|
|
| Straight-line ground rent expense |
|
|
1,117 |
|
|
|
1,220 |
|
| Lease transaction costs which qualify as inducements in accordance with GAAP (4) |
|
|
6,452 |
|
|
|
3,357 |
|
|
|
|
|
|
|
|
|
|
| Same Property Net Operating Income - cash basis |
|
$ |
349,094 |
|
|
$ |
345,255 |
|
|
|
|
|
|
|
|
|
|
| (1) |
These partnerships include 505 9th Street in Washington, D.C., Fountain Square in Reston, VA, 767 Fifth Avenue (The GM Building) and Times Square Tower in New York City and, beginning October 30, 2014, 100 Federal
Street and Atlantic Wharf Office Building in Boston, MA and 601 Lexington Avenue in New York City. |
| (2) |
For disclosures related to the calculation of Net Operating Income from unconsolidated joint ventures, see page 17. |
| (3) |
Pages 20-22 & 38 indicate by footnote the properties which are not included as part of Same Property Net Operating Income. |
| (4) |
For additional information, refer to page 42. |
41
Boston Properties, Inc.
First Quarter 2015
Same Property Net Operating Income by Reportable Segment
(in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Office (1) |
|
|
Office/Technical |
|
| |
|
For the three months ended |
|
|
$ |
|
|
% |
|
|
For the three months ended |
|
|
$ |
|
|
% |
|
| |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
| Rental Revenue |
|
$ |
560,603 |
|
|
$ |
533,175 |
|
|
|
|
|
|
|
|
|
|
$ |
14,821 |
|
|
$ |
13,569 |
|
|
|
|
|
|
|
|
|
| Less Termination Income |
|
|
14,924 |
|
|
|
1,110 |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
|
545,679 |
|
|
|
532,065 |
|
|
$ |
13,614 |
|
|
|
2.6 |
% |
|
|
14,821 |
|
|
|
13,569 |
|
|
$ |
1,252 |
|
|
|
9.2 |
% |
| Operating expenses and real estate taxes |
|
|
205,362 |
|
|
|
194,943 |
|
|
|
10,419 |
|
|
|
5.3 |
% |
|
|
4,089 |
|
|
|
3,747 |
|
|
|
342 |
|
|
|
9.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (2) |
|
$ |
340,317 |
|
|
$ |
337,122 |
|
|
$ |
3,195 |
|
|
|
0.9 |
% |
|
$ |
10,732 |
|
|
$ |
9,822 |
|
|
$ |
910 |
|
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
$ |
545,679 |
|
|
$ |
532,065 |
|
|
|
|
|
|
|
|
|
|
$ |
14,821 |
|
|
$ |
13,569 |
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line rent and fair value lease revenue |
|
|
23,281 |
|
|
|
17,913 |
|
|
|
5,368 |
|
|
|
30.0 |
% |
|
|
1,523 |
|
|
|
1,004 |
|
|
|
519 |
|
|
|
51.7 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease transaction costs which qualify as inducements in accordance with GAAP (3) |
|
|
3,868 |
|
|
|
2,756 |
|
|
|
1,112 |
|
|
|
40.3 |
% |
|
|
664 |
|
|
|
427 |
|
|
|
237 |
|
|
|
55.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - cash basis |
|
|
526,266 |
|
|
|
516,908 |
|
|
|
9,358 |
|
|
|
1.8 |
% |
|
|
13,962 |
|
|
|
12,992 |
|
|
|
970 |
|
|
|
7.5 |
% |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses and real estate taxes |
|
|
205,362 |
|
|
|
194,943 |
|
|
|
10,419 |
|
|
|
5.3 |
% |
|
|
4,089 |
|
|
|
3,747 |
|
|
|
342 |
|
|
|
9.1 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line ground rent expense (4) |
|
|
1,117 |
|
|
|
1,220 |
|
|
|
(103 |
) |
|
|
(8.4 |
%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (5) - cash basis |
|
$ |
322,021 |
|
|
$ |
323,185 |
|
|
$ |
(1,164 |
) |
|
|
(0.4 |
%) |
|
$ |
9,873 |
|
|
$ |
9,245 |
|
|
$ |
628 |
|
|
|
6.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sub-Total (1) |
|
|
Hotel & Residential |
|
| |
|
For the three months ended |
|
|
$ |
|
|
% |
|
|
For the three months ended |
|
|
$ |
|
|
% |
|
| |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
| Rental Revenue |
|
$ |
575,424 |
|
|
$ |
546,744 |
|
|
|
|
|
|
|
|
|
|
$ |
10,263 |
|
|
$ |
9,356 |
|
|
|
|
|
|
|
|
|
| Less Termination Income |
|
|
14,924 |
|
|
|
1,110 |
|
|
|
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
|
560,500 |
|
|
|
545,634 |
|
|
$ |
14,866 |
|
|
|
2.7 |
% |
|
|
10,263 |
|
|
|
9,356 |
|
|
$ |
907 |
|
|
|
9.7 |
% |
| Operating expenses and real estate taxes |
|
|
209,451 |
|
|
|
198,690 |
|
|
|
10,761 |
|
|
|
5.4 |
% |
|
|
8,085 |
|
|
|
7,244 |
|
|
|
841 |
|
|
|
11.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (2) |
|
$ |
351,049 |
|
|
$ |
346,944 |
|
|
$ |
4,105 |
|
|
|
1.2 |
% |
|
$ |
2,178 |
|
|
$ |
2,112 |
|
|
$ |
66 |
|
|
|
3.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
$ |
560,500 |
|
|
$ |
545,634 |
|
|
|
|
|
|
|
|
|
|
$ |
10,263 |
|
|
$ |
9,356 |
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line rent and fair value lease revenue |
|
|
24,804 |
|
|
|
18,917 |
|
|
|
5,887 |
|
|
|
31.1 |
% |
|
|
2 |
|
|
|
3 |
|
|
|
(1 |
) |
|
|
(33.3 |
%) |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease transaction costs which qualify as inducements in accordance with GAAP (3) |
|
|
4,532 |
|
|
|
3,183 |
|
|
|
1,349 |
|
|
|
42.4 |
% |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - cash basis |
|
|
540,228 |
|
|
|
529,900 |
|
|
|
10,328 |
|
|
|
1.9 |
% |
|
|
10,261 |
|
|
|
9,353 |
|
|
|
908 |
|
|
|
9.7 |
% |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses and real estate taxes |
|
|
209,451 |
|
|
|
198,690 |
|
|
|
10,761 |
|
|
|
5.4 |
% |
|
|
8,085 |
|
|
|
7,244 |
|
|
|
841 |
|
|
|
11.6 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line ground rent expense (4) |
|
|
1,117 |
|
|
|
1,220 |
|
|
|
(103 |
) |
|
|
(8.4 |
%) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (5) - cash basis |
|
$ |
331,894 |
|
|
$ |
332,430 |
|
|
$ |
(536 |
) |
|
|
(0.2 |
%) |
|
$ |
2,176 |
|
|
$ |
2,109 |
|
|
$ |
67 |
|
|
|
3.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Unconsolidated Joint Ventures |
|
|
Total (1) |
|
| |
|
For the three months ended |
|
|
$ |
|
|
% |
|
|
For the three months ended |
|
|
$ |
|
|
% |
|
| |
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
|
31-Mar-15 |
|
|
31-Mar-14 |
|
|
Change |
|
|
Change |
|
| Rental Revenue |
|
$ |
24,496 |
|
|
$ |
18,488 |
|
|
|
|
|
|
|
|
|
|
$ |
610,183 |
|
|
$ |
574,588 |
|
|
|
|
|
|
|
|
|
| Less Termination Income |
|
|
— |
|
|
|
9 |
|
|
|
|
|
|
|
|
|
|
|
14,924 |
|
|
|
1,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
|
24,496 |
|
|
|
18,479 |
|
|
$ |
6,017 |
|
|
|
32.6 |
% |
|
|
595,259 |
|
|
|
573,469 |
|
|
$ |
21,790 |
|
|
|
3.8 |
% |
| Operating expenses and real estate taxes |
|
|
9,822 |
|
|
|
7,572 |
|
|
|
2,250 |
|
|
|
29.7 |
% |
|
|
227,358 |
|
|
|
213,506 |
|
|
|
13,852 |
|
|
|
6.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (2) |
|
$ |
14,674 |
|
|
$ |
10,907 |
|
|
$ |
3,767 |
|
|
|
34.5 |
% |
|
$ |
367,901 |
|
|
$ |
359,963 |
|
|
$ |
7,938 |
|
|
|
2.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - subtotal |
|
$ |
24,496 |
|
|
$ |
18,479 |
|
|
|
|
|
|
|
|
|
|
$ |
595,259 |
|
|
$ |
573,469 |
|
|
|
|
|
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line rent and fair value lease revenue |
|
|
1,570 |
|
|
|
365 |
|
|
|
1,205 |
|
|
|
330.1 |
% |
|
|
26,376 |
|
|
|
19,285 |
|
|
|
7,091 |
|
|
|
36.8 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Lease transaction costs which qualify as inducements in accordance with GAAP (3) |
|
|
1,920 |
|
|
|
174 |
|
|
|
1,746 |
|
|
|
1,003.4 |
% |
|
|
6,452 |
|
|
|
3,357 |
|
|
|
3,095 |
|
|
|
92.2 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Rental revenue - cash basis |
|
|
24,846 |
|
|
|
18,288 |
|
|
|
6,558 |
|
|
|
35.9 |
% |
|
|
575,335 |
|
|
|
557,541 |
|
|
|
17,794 |
|
|
|
3.2 |
% |
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses and real estate taxes |
|
|
9,822 |
|
|
|
7,572 |
|
|
|
2,250 |
|
|
|
29.7 |
% |
|
|
227,358 |
|
|
|
213,506 |
|
|
|
13,852 |
|
|
|
6.5 |
% |
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Straight-line ground rent expense (4) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,117 |
|
|
|
1,220 |
|
|
|
(103 |
) |
|
|
(8.4 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Operating Income (5) - cash basis |
|
$ |
15,024 |
|
|
$ |
10,716 |
|
|
$ |
4,308 |
|
|
|
40.2 |
% |
|
$ |
349,094 |
|
|
$ |
345,255 |
|
|
$ |
3,839 |
|
|
|
1.1 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Includes 100% share of consolidated joint ventures. Same store consolidated joint venture properties includes 505 9th Street in Washington, D.C., Fountain Square in Reston, VA, 767 Fifth Avenue (The GM Building) and
Times Square Tower in New York City and, beginning October 30, 2014, 100 Federal Street and Atlantic Wharf Office Building in Boston, MA and 601 Lexington Avenue in New York City. |
| (2) |
For a quantitative reconciliation of net operating income (NOI) to net income available to common shareholders, see page 41. For disclosures relating to our use of NOI see page 49. |
| (3) |
Leasing transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 11. For additional information related to second generation
transaction costs, see page 43. |
| (4) |
For additional information, see page 6. |
| (5) |
For a quantitative reconciliation of NOI to NOI on a cash basis see page 41. For disclosures relating to our use of NOI see page 49. |
42
Boston Properties, Inc.
First Quarter 2015
LEASING ACTIVITY
All In-Service Properties -
quarter ended March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Office |
|
|
Office/Technical |
|
|
Total |
|
| Vacant space available @ 1/1/2015 (sf) |
|
|
3,274,083 |
|
|
|
168,385 |
|
|
|
3,442,468 |
|
| Property dispositions/ properties taken out of service (sf) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Properties acquired vacant space (sf) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| Properties placed in-service (sf) |
|
|
32,275 |
(1) |
|
|
— |
|
|
|
32,275 |
|
| Leases expiring or terminated 1/1/2015-3/31/2015 (sf) |
|
|
1,933,803 |
|
|
|
27,639 |
|
|
|
1,961,442 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total space available for lease (sf) |
|
|
5,240,161 |
|
|
|
196,024 |
|
|
|
5,436,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 1st generation leases (sf) |
|
|
135,154 |
|
|
|
— |
|
|
|
135,154 |
|
| 2nd generation leases with new tenants (sf) |
|
|
436,405 |
|
|
|
— |
|
|
|
436,405 |
|
| 2nd generation lease renewals (sf) |
|
|
825,348 |
|
|
|
27,639 |
|
|
|
852,987 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total space leased (sf) |
|
|
1,396,907 |
|
|
|
27,639 |
|
|
|
1,424,546 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Vacant space available for lease @ 3/31/2015 (sf) |
|
|
3,843,254 |
|
|
|
168,385 |
|
|
|
4,011,639 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net (increase)/decrease in available space (sf) |
|
|
(569,171 |
) |
|
|
— |
|
|
|
(569,171 |
) |
|
|
|
|
| Second generation leasing information: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
| Leases commencing during the period (sf) |
|
|
1,261,753 |
|
|
|
27,639 |
|
|
|
1,289,392 |
|
| Average lease term (months) |
|
|
105 |
|
|
|
111 |
|
|
|
105 |
|
| Average free rent period (days) |
|
|
42 |
|
|
|
— |
|
|
|
41 |
|
| Total transaction costs per square foot (3) |
|
$ |
43.27 |
|
|
$ |
19.00 |
|
|
$ |
42.75 |
|
| Increase (decrease) in gross rents (4) |
|
|
(2.21 |
%) |
|
|
(4.23 |
%) |
|
|
(2.23 |
%) |
| Increase (decrease) in net rents (5) |
|
|
(4.43 |
%) |
|
|
(5.29 |
%) |
|
|
(4.44 |
%) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
All leases
1st Generation |
|
|
All leases
2nd Generation |
|
|
Incr (decr)
in 2nd gen.
gross cash rents (4) |
|
|
Incr (decr)
in 2nd gen.
net cash rents (5) |
|
|
Total
Leased (6) |
|
|
Total square feet of leases
executed in the quarter (7) |
|
| Boston |
|
|
— |
|
|
|
280,479 |
|
|
|
8.73 |
% |
|
|
14.67 |
% |
|
|
280,479 |
|
|
|
232,304 |
|
| New York |
|
|
102,879 |
|
|
|
414,283 |
|
|
|
(10.64 |
%) |
|
|
(17.76 |
%) |
|
|
517,162 |
|
|
|
459,869 |
|
| San Francisco |
|
|
32,275 |
|
|
|
126,212 |
|
|
|
22.23 |
% |
|
|
37.11 |
% |
|
|
158,487 |
|
|
|
243,602 |
|
| Washington, DC |
|
|
— |
|
|
|
468,418 |
|
|
|
1.16 |
% |
|
|
1.68 |
% |
|
|
468,418 |
|
|
|
603,534 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
135,154 |
|
|
|
1,289,392 |
|
|
|
(2.23 |
%) |
|
|
(4.44 |
%) |
|
|
1,424,546 |
|
|
|
1,539,309 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
Total square feet of properties placed in service in Q1 2015 consist of 14,400 square feet at 690 Folsom Street and 17,875 square feet at 535 Mission Street. |
| (2) |
Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,289,392 square feet of second generation leases that commenced in Q1 2015, leases for 862,430 square feet
were signed in prior periods. |
| (3) |
Total transaction costs include tenant improvements and leasing commissions and exclude free rent concessions. |
| (4) |
Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 1,119,171 square feet of second generation leases (1) that had been occupied within the
prior 12 months and (2) for which the new lease term is greater than six months. |
| (5) |
Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,119,171 square feet of second generation leases (1) that had been occupied within the prior
12 months and (2) for which the new lease term is greater than six months. |
| (6) |
Represents leases for which rental revenue has commenced in accordance with GAAP during the quarter. |
| (7) |
Represents leases executed in the quarter for which the GAAP impact may be recognized in the current or future quarters, including properties currently under development. The total square feet of leases executed in the
current quarter and recognized in the current quarter is 454,607. |
43
Boston Properties, Inc.
First Quarter 2015
HISTORICALLY GENERATED CAPITAL EXPENDITURES,
TENANT IMPROVEMENT COSTS AND LEASING COMMISSIONS
Historical Capital
Expenditures
(in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1 2015 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
|
|
|
|
|
| Recurring capital expenditures |
|
$ |
8,763 |
|
|
$ |
42,610 |
|
|
$ |
51,026 |
|
|
$ |
23,774 |
|
|
|
|
|
|
| Planned non-recurring capital expenditures associated with acquisition properties |
|
|
972 |
|
|
|
13,087 |
|
|
|
20,506 |
|
|
|
22,287 |
|
|
|
|
|
|
| Hotel improvements, equipment upgrades and replacements |
|
|
491 |
|
|
|
2,894 |
|
|
|
2,070 |
|
|
|
896 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
10,226 |
|
|
$ |
58,591 |
|
|
$ |
73,602 |
|
|
$ |
46,957 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd Generation Tenant Improvements and Leasing Commissions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Q1 2015 |
|
|
2014 |
|
|
2013 |
|
|
2012 |
|
| Office |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Square feet |
|
|
1,261,753 |
|
|
|
3,578,780 |
|
|
|
3,554,632 |
|
|
|
3,572,825 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tenant improvements and lease commissions PSF |
|
$ |
43.27 |
|
|
$ |
30.89 |
|
|
$ |
37.54 |
|
|
$ |
45.31 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Office/Technical |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Square feet |
|
|
27,639 |
|
|
|
357,266 |
|
|
|
55,456 |
|
|
|
59,788 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tenant improvements and lease commissions PSF |
|
$ |
19.00 |
|
|
$ |
16.69 |
|
|
$ |
2.02 |
|
|
$ |
3.94 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average tenant improvements and lease commissions PSF |
|
$ |
42.75 |
|
|
$ |
29.60 |
|
|
$ |
36.99 |
|
|
$ |
44.63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
44
Boston Properties, Inc.
First Quarter 2015
ACQUISITIONS/DISPOSITIONS
as of March 31, 2015
ACQUISITIONS
For the period from
January 1, 2015 through March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property |
|
Date Acquired |
|
Square Feet |
|
|
Initial
Investment |
|
|
Anticipated
Future
Investment |
|
|
Total
Investment |
|
|
Percentage
Leased |
|
|
|
|
|
|
|
|
| Not Applicable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Acquisitions |
|
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DISPOSITIONS
For the period from
January 1, 2015 through March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Property |
|
Date Disposed |
|
Square Feet |
|
|
Gross
Sales Price |
|
|
Net Cash
Proceeds |
|
|
Book Gain |
|
|
|
|
|
|
|
| Washingtonian North (land parcel) |
|
February 19, 2015 |
|
|
N/A |
|
|
$ |
8,700,000 |
|
|
$ |
8,331,000 |
|
|
$ |
3,656,000 |
|
| Residences on The Avenue (335 units) |
|
March 17, 2015 |
|
|
323,050 |
|
|
|
196,000,000 |
|
|
|
192,478,000 |
|
|
|
91,428,000 |
(1) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Dispositions |
|
|
|
|
323,050 |
|
|
$ |
204,700,000 |
|
|
$ |
200,809,000 |
|
|
$ |
95,084,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
The Company has agreed to provide net operating income support to the buyer of up to $6.0 million should the property’s net operating income fail to achieve certain thresholds, which has been recorded as a
reduction to the gain on sale. The Residences on The Avenue is comprised of 335 apartment units and approximately 50,000 net rentable square feet of retail space, subject to a ground lease that expires on February 1, 2068. |
45
Boston Properties, Inc.
First Quarter 2015
VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS (1)
as of March 31, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction
Properties |
|
Initial
Occupancy |
|
Estimated
Stabilization
Date |
|
Location |
|
# of
Buildings |
|
|
Square
feet |
|
|
Investment
to Date (2) |
|
|
Estimated
Total
Investment (2) |
|
|
Total
Construction
Loan (2) |
|
|
Amount
Drawn at
3/31/2015 (2) |
|
|
Estimated
Future Equity
Requirement (2) |
|
|
Percentage
Leased (3) |
|
|
Percentage
Placed in
Service (4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Annapolis Junction Building Seven (50% ownership) |
|
Q3 2015 |
|
Q3 2015 |
|
Annapolis, MD |
|
|
1 |
|
|
|
125,000 |
|
|
$ |
16,830,911 |
|
|
$ |
17,500,000 |
|
|
$ |
11,000,000 |
|
|
$ |
7,600,091 |
|
|
$ |
— |
|
|
|
100 |
% |
|
|
— |
|
| 690 Folsom Street |
|
Q1 2015 |
|
Q4 2015 |
|
San Francisco, CA |
|
|
1 |
|
|
|
26,000 |
|
|
|
14,193,324 |
|
|
|
17,900,000 |
|
|
|
— |
|
|
|
— |
|
|
|
3,706,676 |
|
|
|
55 |
% |
|
|
55 |
% |
| Prudential Retail Expansion |
|
Q3 2015 |
|
Q4 2015 |
|
Boston, MA |
|
|
— |
|
|
|
15,000 |
|
|
|
2,927,546 |
|
|
|
10,330,000 |
|
|
|
— |
|
|
|
— |
|
|
|
7,402,454 |
|
|
|
— |
|
|
|
|
|
| 804 Carnegie Center |
|
Q1 2016 |
|
Q1 2016 |
|
Princeton, NJ |
|
|
1 |
|
|
|
130,000 |
|
|
|
16,196,011 |
|
|
|
47,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
30,803,989 |
|
|
|
100 |
% |
|
|
— |
|
| 99 Third Avenue Retail |
|
Q4 2015 |
|
Q2 2016 |
|
Waltham, MA |
|
|
1 |
|
|
|
16,500 |
|
|
|
11,801,768 |
|
|
|
16,900,000 |
|
|
|
— |
|
|
|
— |
|
|
|
5,098,232 |
|
|
|
84 |
% |
|
|
— |
|
| 535 Mission Street |
|
Q4 2014 |
|
Q3 2016 |
|
San Francisco, CA |
|
|
1 |
|
|
|
307,000 |
|
|
|
179,744,086 |
|
|
|
215,000,000 |
|
|
|
— |
|
|
|
— |
|
|
|
35,255,914 |
|
|
|
70 |
% |
|
|
31 |
% |
| Annapolis Junction Building Eight (50% ownership) |
|
Q1 2016 |
|
Q1 2017 |
|
Annapolis, MD |
|
|
1 |
|
|
|
125,000 |
|
|
|
11,940,243 |
|
|
|
18,500,000 |
|
|
|
13,000,000 |
|
|
|
6,820,453 |
|
|
|
380,210 |
|
|
|
— |
|
|
|
— |
|
| 10 CityPoint |
|
Q3 2016 |
|
Q2 2017 |
|
Waltham, MA |
|
|
1 |
|
|
|
245,000 |
|
|
|
33,210,344 |
|
|
|
100,400,000 |
|
|
|
— |
|
|
|
— |
|
|
|
67,189,656 |
|
|
|
74 |
% |
|
|
— |
|
| 601 Massachusetts Avenue |
|
Q4 2015 |
|
Q4 2017 |
|
Washington, DC |
|
|
1 |
|
|
|
478,000 |
|
|
|
247,909,908 |
|
|
|
360,760,000 |
|
|
|
— |
|
|
|
— |
|
|
|
112,850,092 |
|
|
|
83 |
% |
|
|
— |
|
| 888 Boylston Street |
|
Q3 2016 |
|
Q4 2017 |
|
Boston, MA |
|
|
1 |
|
|
|
425,000 |
|
|
|
50,932,724 |
|
|
|
271,500,000 |
|
|
|
— |
|
|
|
— |
|
|
|
220,567,276 |
|
|
|
55 |
% |
|
|
— |
|
| Salesforce Tower (95% ownership) |
|
Q2 2017 |
|
Q1 2019 |
|
San Francisco, CA |
|
|
1 |
|
|
|
1,400,000 |
|
|
|
365,547,423 |
|
|
|
1,073,500,000 |
|
|
|
— |
|
|
|
— |
|
|
|
707,952,577 |
|
|
|
51 |
% |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Properties under Construction |
|
|
|
|
|
|
|
|
10 |
|
|
|
3,292,500 |
|
|
$ |
951,234,288 |
|
|
$ |
2,149,290,000 |
|
|
$ |
24,000,000 |
|
|
$ |
14,420,544 |
|
|
$ |
1,191,207,076 |
|
|
|
61 |
% |
|
|
7 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PROJECTS PLACED IN-SERVICE DURING 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Initial
In Service Date |
|
Estimated
Stabilization
Date |
|
Location |
|
# of
Buildings |
|
|
Square
feet |
|
|
Investment
to Date (2) |
|
|
Estimated
Total
Investment (2) |
|
|
Debt (2) |
|
|
Amount
Drawn at
3/31/2015 (2) |
|
|
Estimated
Future Equity
Requirement (2) |
|
|
Percentage
Leased (3) |
|
|
Percentage
Placed
in Service (4) |
|
| Not Applicable |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Projects placed In-Service |
|
|
|
|
|
|
|
|
— |
|
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
IN-SERVICE PROPERTIES HELD FOR RE-DEVELOPMENT
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Sub Market |
|
|
# of
Buildings |
|
|
Existing
Square Feet |
|
|
Leased % |
|
|
Annualized
Revenue Per
Leased SF (5) |
|
|
Encumbered
with secured
debt
(Y/N) |
|
Central
Business
District (CBD) or
Suburban (S) |
|
Incremental Future
Square Footage (6) |
|
|
|
|
|
|
|
|
|
|
| North First Business Park |
|
|
San Jose, CA |
|
|
|
5 |
|
|
|
190,636 |
|
|
|
100.0 |
% |
|
$ |
15.94 |
|
|
N |
|
S |
|
|
1,359,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total Properties held for Re-Development |
|
|
|
|
|
|
5 |
|
|
|
190,636 |
|
|
|
100.0 |
% |
|
$ |
15.94 |
|
|
|
|
|
|
|
1,359,364 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (1) |
A project is classified as Construction in Progress when construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed. |
| (2) |
Represents the Company’s share. Includes net revenue and interest carry. |
| (3) |
Represents percentage leased as of April 23, 2015, including leases with future commencement dates and including residential space. |
| (4) |
Represents the portion of the project which no longer qualifies for capitalization of interest in accordance with GAAP. |
| (5) |
For disclosures relating to our definition of Annualized Revenue, see page 49. |
| (6) |
The Incremental Future Square Footage is included in Approximate Developable Square Feet of Value Creation Pipeline - Owned Land Parcels on page 47. |
46
Boston Properties, Inc.
First Quarter 2015
VALUE CREATION PIPELINE - OWNED LAND PARCELS
as of March 31, 2015
|
|
|
|
|
|
|
|
|
| Location |
|
Acreage |
|
|
Approximate
Developable
Square Feet |
|
|
|
|
| San Jose, CA (1) |
|
|
44.0 |
|
|
|
2,659,000 |
|
| Reston, VA |
|
|
38.3 |
|
|
|
1,160,000 |
|
| Waltham, MA |
|
|
11.3 |
|
|
|
805,000 |
|
| Springfield, VA |
|
|
17.8 |
|
|
|
800,000 |
|
| Dulles, VA |
|
|
76.6 |
|
|
|
760,000 |
|
| Rockville, MD |
|
|
58.1 |
|
|
|
759,000 |
|
| Gaithersburg, MD (2) |
|
|
19.3 |
|
|
|
550,000 |
|
| Washington, DC (50% ownership) |
|
|
1.3 |
|
|
|
520,000 |
|
| Marlborough, MA |
|
|
50.0 |
|
|
|
400,000 |
|
| Boston, MA (50% ownership) |
|
|
— |
|
|
|
377,000 |
|
| Annapolis, MD (50% ownership) |
|
|
20.0 |
|
|
|
300,000 |
|
| Andover, MA |
|
|
10.0 |
|
|
|
110,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
346.7 |
|
|
|
9,200,000 |
|
|
|
|
|
|
|
|
|
|
VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
as of March 31, 2015
|
|
|
|
|
|
|
|
|
| Location |
|
Acreage |
|
|
Approximate
Developable
Square Feet |
|
|
|
|
| Princeton, NJ (3) |
|
|
134.1 |
|
|
|
1,650,000 |
|
| Boston, MA (50% ownership) |
|
|
— |
|
|
|
1,423,000 |
|
| Cambridge, MA (4) |
|
|
— |
|
|
|
207,500 |
|
| San Francisco, CA |
|
|
2.3 |
|
|
|
TBD |
|
|
|
|
|
|
|
|
|
|
|
|
|
136.4 |
|
|
|
3,280,500 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Excludes the existing square footage related to in-service properties being held for future re-development included on page 46. |
| (2) |
Remaining developable square footage subsequent to the modification of the development plan and the recent sale of a land parcel that accommodates 125,000 square feet. |
| (3) |
Option to purchase at a fixed price of $30.50 per square foot plus annual non-refundable option payments of $125,000. The option expires on January 1, 2018. |
| (4) |
Includes 7,500 square feet of development rights for office / lab space and the option to purchase 200,000 square feet of residential rights. |
47
Boston Properties, Inc.
First Quarter 2015
Definitions
This section contains an explanation of certain
non-GAAP financial measures we provide in other sections of this document, as well as the reasons why management believes these measures provide useful information to investors about the Company’s financial condition or results of operations.
Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.
Funds from Operations
Pursuant to the revised definition
of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to
Boston Properties, Inc. (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of consolidated entities, impairment losses on investments in
unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and amortization, and after adjustment for unconsolidated
partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the understanding of operating results of REITs among the
investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial performance because, by excluding gains and losses
related to asset sales (land and property), impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in similar condition based on historical cost accounting and useful life estimates),
FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do
not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently.
FFO should not be
considered as an alternative to net income attributable to Boston Properties, Inc. (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance
with GAAP, and is not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income attributable to Boston Properties,
Inc. and considered in addition to cash flows determined in accordance with GAAP, as presented in our consolidated financial statements.
Funds
Available for Distribution (FAD)
In addition to FFO, we present Funds Available for Distribution (FAD) by (1) adding to FFO non-real estate
depreciation, fair value interest adjustment, losses from early extinguishments of debt, ASC 470-20 (formerly known as FSP APB 14-1) interest expense adjustment, non-cash stock-based compensation expense, and partners’ share of joint venture
2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), (2) eliminating the effects of straight-line rent and fair value lease revenue, (3) subtracting: recurring capital
expenditures; hotel improvements, equipment upgrades and replacements; and 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences); and (4) subtracting from FFO non-cash termination
adjustment. Although our FAD may not be comparable to that of other REITs and real estate companies, we believe it provides a meaningful indicator of our ability to fund cash needs and to make cash distributions to equity owners. In addition, we
believe that to further understand our liquidity, FAD should be compared with our cash flows determined in accordance with GAAP, as presented in our consolidated financial statements. FAD does not represent cash generated from operating activities
determined in accordance with GAAP, and FAD should not be considered as an alternative to net income (determined in accordance with GAAP) as an indication of our performance, as an alternative to net cash flows from operating activities (determined
in accordance with GAAP), or as a measure of our liquidity.
Total Consolidated Debt to Total Consolidated Market Capitalization Ratio
Total consolidated debt to total consolidated market capitalization ratio, defined as total consolidated debt as a percentage of the market value of our
outstanding equity securities plus our total consolidated debt, is a measure of leverage commonly used by analysts in the REIT sector. Total consolidated market capitalization is the sum of (A) our total consolidated indebtedness outstanding
plus (B) the market value of our outstanding equity securities calculated using the closing price per share of common stock of the Company multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding
common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding Series Two Preferred Units of partnership interest
in Boston Properties Limited Partnership (all of which have been converted as of May 12, 2014) and (4) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the
LTIP Units plus (C) outstanding Series Four Preferred Units of partnership interest in Boston Properties Limited Partnership multiplied by the fixed liquidation preference of $50 per unit plus (D) outstanding shares of 5.25% Series B
Cumulative Redeemable Preferred Stock multiplied by the fixed liquidation preference of $2,500 per share. The calculation of total consolidated market capitalization does not include LTIP Units issued in the form of performance-based awards (OPP
Awards and MYLTIP Awards) because, unlike other LTIP Units, they are not earned until certain performance thresholds are achieved. We are presenting this ratio because our degree of leverage could affect our ability to obtain additional financing
for working capital, capital expenditures, acquisitions, development or other general corporate purposes. Investors should understand that our total consolidated debt to total consolidated market capitalization ratio is in part a function of the
market price of the common stock of the Company, and as such will fluctuate with changes in such price and does not necessarily reflect our capacity to incur additional debt to finance our activities or our ability to manage our existing debt
obligations. However, for a company like ours, whose assets are primarily income-producing real estate, the total consolidated debt to total consolidated market capitalization ratio may provide investors with an alternate indication of leverage, so
long as it is evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of our outstanding indebtedness.
Total Adjusted Debt to Total Adjusted Market Capitalization Ratio
Total adjusted debt to total adjusted market capitalization ratio, defined as total adjusted debt (which equals our total consolidated debt, plus our share of
unconsolidated joint venture debt, minus our joint venture partners’ share of consolidated debt) as a percentage of the market value of our outstanding equity securities plus our total adjusted debt, is an alternative measure of leverage used
by some analysts in the REIT sector. Total adjusted market capitalization is the sum of (A) our total adjusted debt plus (B) the market value of our outstanding equity securities calculated using the closing price per share of common stock
of the Company multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the
Company), (3) common units issuable upon conversion of all outstanding Series Two Preferred Units of partnership interest in Boston Properties Limited Partnership (all of which have been converted as of May 12, 2014) and (4) common
units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units plus (C) outstanding Series Four Preferred Units of partnership interest in Boston Properties Limited
Partnership multiplied by the fixed liquidation preference of $50 per unit plus (D) outstanding shares of 5.25% Series B Cumulative Redeemable Preferred Stock multiplied by the fixed liquidation preference of $2,500 per share. The calculation
of total adjusted market capitalization does not include performance-based awards because, unlike other LTIP Units, they are not earned until certain performance thresholds are achieved.
We present this ratio because, following the consolidation of 767 Venture, LLC (the entity that owns 767 Fifth Avenue (The GM Building)) effective
June 1, 2013, our consolidated debt increased significantly compared to prior periods even though our economic interest in 767 Venture, LLC remained substantially unchanged. We believe the presentation of total adjusted debt may provide
investors with a more complete picture of our share of consolidated and unconsolidated debt. In addition, in light of the difference between our total consolidated debt and our total adjusted debt, we believe that also presenting our total adjusted
debt to total adjusted market capitalization may provide investors with a more complete picture of our leverage in relation to the overall size of our company. Investors should understand that our total adjusted debt to total adjusted market
capitalization ratio is in part a function of the market price of the common stock of the Company, and as such will fluctuate with changes in such price and does not necessarily reflect our capacity to incur additional debt to finance our activities
or our ability to manage our existing debt obligations. The total adjusted debt to total adjusted market capitalization ratio should be evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and
other financial ratios, as well as the various components of our outstanding indebtedness.
48
Boston Properties, Inc.
First Quarter 2015
Definitions
Consolidated Net Operating Income (NOI)
Consolidated NOI is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc., the most directly comparable GAAP financial
measure, plus net income attributable to noncontrolling interests, less gains on sales of real estate, plus corporate general and administrative expense, transaction costs, depreciation and amortization and interest expense, less development and
management services income, income from unconsolidated joint ventures, interest and other income and gains (losses) from investments in securities. In some cases we also present Consolidated NOI on a cash basis, which is Consolidated NOI after
eliminating the effects of straight-lining of rent and fair value lease revenue and lease transaction costs which qualify as inducements in accordance with GAAP. We use Consolidated NOI internally as a performance measure and believe Consolidated
NOI provides useful information to investors regarding our financial condition and results of operations because it reflects only those income and expense items that are incurred at the property level. Therefore, we believe Consolidated NOI is a
useful measure for evaluating the operating performance of our real estate assets. Our management also uses Consolidated NOI to evaluate regional property level performance and to make decisions about resource allocations. Further, we believe
Consolidated NOI is useful to investors as a performance measure because, when compared across periods, Consolidated NOI reflects the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development
activity on an unleveraged basis, providing perspective not immediately apparent from net income. Consolidated NOI excludes certain components from net income in order to provide results that are more closely related to a property’s results of
operations. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. In addition, depreciation and amortization,
because of historical cost accounting and useful life estimates, may distort operating performance at the property level. Consolidated NOI presented by us may not be comparable to Consolidated NOI reported by other REITs that define Consolidated NOI
differently. We believe that in order to facilitate a clear understanding of our operating results, Consolidated NOI should be examined in conjunction with net income as presented in our consolidated financial statements. Consolidated NOI should not
be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.
Combined Net Operating Income (NOI)
Combined NOI is a
non-GAAP financial measure equal to Consolidated NOI plus our share of net operating income from unconsolidated joint ventures. In some cases we also present Combined NOI on a cash basis, which is Combined NOI after eliminating the effects of
straight-lining of rent and fair value lease revenue and lease transaction costs which qualify as inducements in accordance with GAAP. In addition to Consolidated NOI, we use Combined NOI internally as a performance measure and believe Combined NOI
provides useful information to investors regarding our financial condition and results of operations because it includes the impact of our unconsolidated joint ventures, which have become significant. Therefore, we believe Combined NOI is a useful
measure for evaluating the operating performance of all of our real estate assets, including those held by our unconsolidated joint ventures. Our management also uses Combined NOI to evaluate regional property level performance and to make decisions
about resource allocations. Further, like Consolidated NOI, we believe Combined NOI is useful to investors as a performance measure because, when compared across periods, Combined NOI reflects the impact on operations from trends in occupancy rates,
rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. Combined NOI presented by us may not be comparable to Combined NOI reported by other
REITs that define Combined NOI differently. We believe that in order to facilitate a clear understanding of our operating results, Combined NOI should be examined in conjunction with net income as presented in our consolidated financial statements.
Combined NOI should not be considered as an alternative to net income as an indication of our performance or to cash flows as a measure of our liquidity or ability to make distributions.
In-Service Properties
We treat a property as being
“in-service” upon the earlier of (i) lease-up and completion of tenant improvements or (ii) one year after cessation of major construction activity under GAAP. The determination as to when a property should be treated as
“in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics we specify a single date for treating a
property as “in-service” which is generally later than the date the property is partially placed in-service for GAAP. Under GAAP a property may be placed in service in stages as construction is completed and the property is held available
for occupancy. In accordance with GAAP, when a portion of a property has been substantially completed and occupied or held available for occupancy, we cease capitalization on that portion, though we may not treat the property as being
“in-service,” and continue to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by our unconsolidated joint ventures. In-service Office and Office/Technical
properties exclude hotel and residential properties.
Same Properties
In our analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were
in-service and owned by us throughout each period presented. We refer to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by us through the end of the latest period presented as “Same
Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned, or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the
latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 20-22 & 38 indicate by
footnote the “In-Service Properties” which are not included in “Same Properties.” “Same Properties NOI” includes our share of net operating income from unconsolidated joint ventures and 100% of consolidated joint
ventures.
Annualized Revenue
Rental obligations at
the end of the reporting period, including contractual base rents, percentage rent and reimbursements from tenants under existing leases, multiplied by twelve. These annualized amounts exclude rent abatements and non-recurring items.
Future Annualized Revenue
Rental obligations including
the sum of (i) contractual base rents at lease expiration and (ii) percentage rent and reimbursements from tenants at the end of the current reporting period, multiplied by twelve. These annualized amounts exclude rent abatements and
non-recurring items.
49
Boston Properties, Inc.
First Quarter 2015
Definitions
Average Monthly Rental Rates
Average Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted monthly average number of occupied units.
Average Economic Occupancy
Average Economic
Occupancy is defined as total possible revenue less vacancy loss as a percentage of total possible revenue. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy
loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property
have different economic impacts on a residential property’s total possible gross revenue.
Market Rents
Market Rents used by the Company in calculating Average Economic Occupancy are based on the current market rates set by the managers of the Company’s
residential properties based on their experience in renting their residential property’s units and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the
average Market Rents during that period and do not reflect any impact for cash concessions.
Average Physical Occupancy
Average Physical Occupancy is defined as the number of average occupied units divided by the total number of units, expressed as a percentage.
50
Exhibit 99.2
800 Boylston Street
Boston,
MA 02199
AT THE COMPANY
Michael LaBelle
Senior Vice President,
Chief Financial Officer
(617) 236-3352
Arista Joyner
Investor Relations Manager
(617) 236-3343
BOSTON PROPERTIES ANNOUNCES
FIRST QUARTER 2015 RESULTS
Reports diluted FFO per share of $1.30 Reports diluted EPS of $1.11
BOSTON, MA, April 27, 2015 – Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported results today for the first
quarter ended March 31, 2015.
Funds from Operations (FFO) for the quarter ended March 31, 2015 were $200.4 million, or $1.31 per share basic
and $1.30 per share diluted. This compares to FFO for the quarter ended March 31, 2014 of $183.8 million, or $1.20 per share basic and $1.20 per share diluted. The weighted average number of basic and diluted shares outstanding totaled
approximately 153,230,000 and 153,873,000, respectively, for the quarter ended March 31, 2015 and 153,030,000 and 154,043,000, respectively, for the quarter ended March 31, 2014.
The Company’s reported FFO of $1.30 per share diluted was greater than the guidance previously provided of $1.22-$1.24 per share diluted primarily due
to greater lease termination income of $0.07 per share and portfolio operations of $0.01 per share, offset by greater than projected interest expense of $0.01 per share.
Net income available to common shareholders was $171.2 million for the quarter ended March 31, 2015, compared to $54.0 million for the quarter ended
March 31, 2014. Net income available to common shareholders per share (EPS) for the quarter ended March 31, 2015 was $1.12 basic and $1.11 on a diluted basis. This compares to EPS for the quarter ended March 31, 2014 of $0.35 basic
and $0.35 on a diluted basis. Net income available to common shareholders for the quarter ended March 31, 2015 includes gains on sales of real estate aggregating approximately $95.1 million, or $0.56 per share basic and $0.55 per share on a
diluted basis.
The reported results are unaudited and there can be no assurance that the results will not vary from the final unaudited information for
the quarter ended March 31, 2015. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made.
1
As of March 31, 2015, the Company’s portfolio consisted of 168 properties, comprised primarily of
Class A office space, one hotel, two residential properties and five retail properties, aggregating approximately 45.5 million square feet, including ten properties under construction totaling 3.3 million square feet. In addition, the
Company has structured parking for vehicles containing approximately 14.7 million square feet. The overall percentage of leased space for the 155 properties in service (excluding the two residential properties and the hotel) as of
March 31, 2015 was 90.3%.
Significant events during the first quarter included:
| • |
|
On January 21, 2015, the Company’s Compensation Committee approved the 2015 Multi-Year, Long-Term Incentive Program (the “2015 MYLTIP”) as a performance-based component of the Company’s overall
compensation program. Under the Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) 718 “Compensation – Stock Compensation,” the 2015 MYLTIP has an aggregate value of approximately $15.7
million, which will generally be amortized into earnings over the four-year plan period under the graded vesting method and has been reflected in the 2015 guidance below. |
| • |
|
On February 19, 2015, the Company commenced a planned interest rate hedging program in contemplation of a financing with a target commencement date in September 2016 and maturity in September 2026. The Company has
since entered into seven forward-starting interest rate swap contracts, including two contracts entered into subsequent to March 31, 2015, which fix the ten-year swap rate at a weighted-average rate of approximately 2.451% per annum on
notional amounts aggregating $300.0 million. |
| • |
|
On February 19, 2015, the Company completed the sale of a parcel of land within its Washingtonian North property located in Gaithersburg, Maryland for a gross sale price of $8.7 million. Net cash proceeds totaled
approximately $8.3 million, resulting in a gain on sale of real estate totaling approximately $3.7 million. The parcel contains approximately 8.5 acres of the approximately 27 acre property. |
| • |
|
On March 11, 2015, the Company received a second interim distribution from its unsecured creditor claim against Lehman Brothers, Inc. totaling approximately $4.5 million, leaving a remaining claim of approximately
$33.0 million. There can be no assurance as to the timing or amount of additional proceeds, if any, that the Company may ultimately realize on the claim. |
| • |
|
On March 17, 2015, the Company completed the sale of its Residences on The Avenue property located in Washington, DC for a gross sale price of $196.0 million. Net cash proceeds totaled approximately $192.5 million,
resulting in a gain on sale of real estate totaling approximately $91.4 million. The Company has agreed to provide net operating income support of up to $6.0 million should the property’s net operating income fail to achieve certain thresholds,
which has been recorded as a reduction to the gain on sale. The Residences on The Avenue is comprised of 335 apartment units and approximately 50,000 net rentable square feet of retail space, subject to a ground lease that expires on
February 1, 2068. |
2
EPS and FFO per Share Guidance:
The Company’s guidance for the second quarter and full year 2015 for EPS (diluted) and FFO per share (diluted) is set forth and reconciled
below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels and the earnings impact of the events referenced in
this release and otherwise referenced during the conference call referred to below. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or
dispositions, other possible capital markets activity or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense
and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and
amortization, impairment losses or gains or losses associated with disposition activities. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.
As shown below, the Company has updated its guidance for FFO per share (diluted) for full year 2015 to $5.35 - $5.45 per share from $5.28 - $5.43 per share.
The updated guidance reflects, when compared to the Company’s prior guidance, an increase from the first quarter 2015 results of $0.07 per share, an increase in net operating income from the Company’s property portfolio of $0.02 per share,
offset by a decrease in FFO of $0.05 per share from lower capitalized interest.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Second Quarter 2015 |
|
|
|
|
Full Year 2015 |
|
| |
|
Low |
|
|
- |
|
|
High |
|
|
|
|
Low |
|
|
- |
|
|
High |
|
|
|
|
|
|
|
|
|
|
|
|
| Projected EPS (diluted) |
|
$ |
0.43 |
|
|
|
- |
|
|
$ |
0.45 |
|
|
|
|
$ |
2.43 |
|
|
|
- |
|
|
$ |
2.53 |
|
| Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Projected Company Share of Real Estate Depreciation and Amortization |
|
|
0.89 |
|
|
|
- |
|
|
|
0.89 |
|
|
|
|
|
3.47 |
|
|
|
- |
|
|
|
3.47 |
|
| Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Projected Company Share of Gains on Sales of Real Estate |
|
|
0.00 |
|
|
|
- |
|
|
|
0.00 |
|
|
|
|
|
0.55 |
|
|
|
- |
|
|
|
0.55 |
|
|
|
|
|
|
|
|
|
|
|
|
| Projected FFO per Share (diluted) |
|
$ |
1.32 |
|
|
|
- |
|
|
$ |
1.34 |
|
|
|
|
$ |
5.35 |
|
|
|
- |
|
|
$ |
5.45 |
|
|
|
|
|
|
|
|
|
|
|
|
Boston Properties will host a conference call on Tuesday, April 28, 2015 at 10:00 AM Eastern Time, open to the general
public, to discuss the first quarter 2015 results, the 2015 projections and related assumptions, and other related matters that may be of interest to investors. The number to call for this interactive teleconference is (877) 796-3880 (Domestic)
or (281) 913-8731 (International) and entering the passcode 97591714. A replay of the conference call will be available through May 12, 2015, by dialing (855) 859-2056 (Domestic) or (404) 537-3406 (International) and entering the
passcode 97591714. There will also be a live audio webcast of the call which may be accessed on the Company’s website at www.bostonproperties.com in the Investor Relations section. Shortly after the call a replay of the webcast will be
available in the Investor Relations section of the Company’s website and archived for up to twelve months following the call.
Additionally, a copy
of Boston Properties’ first quarter 2015 “Supplemental Operating and Financial Data” and this press release are available in the Investor Relations section of the Company’s website at www.bostonproperties.com.
Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages,
operates and owns a diverse portfolio of Class
3
A office space, one hotel, two residential properties and five retail properties. The Company is one of the largest owners and developers of Class A office properties in the United States,
concentrated in four markets – Boston, New York, San Francisco and Washington, DC.
This press release contains forward-looking statements within
the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “estimates,” “expects,” “guidance,” “intends,”
“plans,” “projects” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond Boston Properties’ control and could materially affect actual results, performance or achievements. These factors include, without limitation, the Company’s ability to enter
into new leases or renew leases on favorable terms, dependence on tenants’ financial condition, the uncertainties of real estate development, acquisition and disposition activity, the ability to effectively integrate acquisitions, the
uncertainties of investing in new markets, the costs and availability of financing, the effectiveness of our interest rate hedging contracts, the ability of our joint venture partners to satisfy their obligations, the effects of local, national and
international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on
period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. Boston Properties does not undertake a duty
to update or revise any forward-looking statement, including its guidance for the second quarter and full fiscal year 2015, whether as a result of new information, future events or otherwise.
Financial tables follow.
4
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
| |
|
March 31,
2015 |
|
|
December 31,
2014 |
|
| |
|
(in thousands, except for share amounts) |
|
| |
|
(unaudited) |
|
| ASSETS |
|
|
|
|
|
|
|
|
|
|
|
| Real estate |
|
$ |
18,153,816 |
|
|
$ |
18,231,978 |
|
| Construction in progress |
|
|
797,148 |
|
|
|
736,311 |
|
| Land held for future development |
|
|
271,327 |
|
|
|
268,114 |
|
| Less: accumulated depreciation |
|
|
(3,646,853 |
) |
|
|
(3,547,659 |
) |
|
|
|
|
|
|
|
|
|
| Total real estate |
|
|
15,575,438 |
|
|
|
15,688,744 |
|
|
|
|
| Cash and cash equivalents |
|
|
1,064,396 |
|
|
|
1,763,079 |
|
| Cash held in escrows |
|
|
588,218 |
|
|
|
487,321 |
|
| Investments in securities |
|
|
20,736 |
|
|
|
19,459 |
|
| Tenant and other receivables, net of allowance for doubtful accounts of $1,099 and $1,142, respectively |
|
|
47,768 |
|
|
|
46,595 |
|
| Accrued rental income, net of allowance of $1,126 and $1,499, respectively |
|
|
713,874 |
|
|
|
691,999 |
|
| Deferred charges, net |
|
|
806,468 |
|
|
|
831,744 |
|
| Prepaid expenses and other assets |
|
|
165,985 |
|
|
|
164,432 |
|
| Investments in unconsolidated joint ventures |
|
|
196,188 |
|
|
|
193,394 |
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
$ |
19,179,071 |
|
|
$ |
19,886,767 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| LIABILITIES AND EQUITY |
|
|
|
|
|
|
|
|
|
|
|
| Liabilities: |
|
|
|
|
|
|
|
|
| Mortgage notes payable |
|
$ |
4,289,120 |
|
|
$ |
4,309,484 |
|
| Unsecured senior notes, net of discount |
|
|
5,288,101 |
|
|
|
5,287,704 |
|
| Unsecured exchangeable senior notes, net of discount |
|
|
— |
|
|
|
— |
|
| Unsecured line of credit |
|
|
— |
|
|
|
— |
|
| Mezzanine notes payable |
|
|
309,475 |
|
|
|
309,796 |
|
| Outside members’ notes payable |
|
|
180,000 |
|
|
|
180,000 |
|
| Accounts payable and accrued expenses |
|
|
224,086 |
|
|
|
243,263 |
|
| Dividends and distributions payable |
|
|
112,796 |
|
|
|
882,472 |
|
| Accrued interest payable |
|
|
186,630 |
|
|
|
163,532 |
|
| Other liabilities |
|
|
483,762 |
|
|
|
502,255 |
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
11,073,970 |
|
|
|
11,878,506 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Commitments and contingencies |
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Noncontrolling interest: |
|
|
|
|
|
|
|
|
| Redeemable preferred units of the Operating Partnership |
|
|
633 |
|
|
|
633 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Redeemable interest in property partnership |
|
|
105,520 |
|
|
|
104,692 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Equity: |
|
|
|
|
|
|
|
|
| Stockholders’ equity attributable to Boston Properties, Inc. |
|
|
|
|
|
|
|
|
| Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding |
|
|
— |
|
|
|
— |
|
| Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value,
liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding at March 31, 2015 and December 31, 2014, respectively |
|
|
200,000 |
|
|
|
200,000 |
|
| Common stock, $0.01 par value, 250,000,000 shares authorized, 153,481,007 and 153,192,845 shares issued and 153,402,107 and 153,113,945
shares outstanding at March 31, 2015 and December 31, 2014, respectively |
|
|
1,534 |
|
|
|
1,531 |
|
| Additional paid-in capital |
|
|
6,286,260 |
|
|
|
6,270,257 |
|
| Dividends in excess of earnings |
|
|
(690,993 |
) |
|
|
(762,464 |
) |
| Treasury common stock, at cost |
|
|
(2,722 |
) |
|
|
(2,722 |
) |
| Accumulated other comprehensive loss |
|
|
(11,907 |
) |
|
|
(9,304 |
) |
|
|
|
|
|
|
|
|
|
| Total stockholders’ equity attributable to Boston Properties, Inc. |
|
|
5,782,172 |
|
|
|
5,697,298 |
|
|
|
|
| Noncontrolling interests: |
|
|
|
|
|
|
|
|
| Common units of the Operating Partnership |
|
|
617,274 |
|
|
|
603,171 |
|
| Property partnerships |
|
|
1,599,502 |
|
|
|
1,602,467 |
|
|
|
|
|
|
|
|
|
|
| Total equity |
|
|
7,998,948 |
|
|
|
7,902,936 |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and equity |
|
$ |
19,179,071 |
|
|
$ |
19,886,767 |
|
|
|
|
|
|
|
|
|
|
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
March 31, |
|
| |
|
2015 |
|
|
2014 |
|
| |
|
(in thousands, except for per share
amounts) |
|
| Revenue |
|
|
|
|
|
|
|
|
| Rental |
|
|
|
|
|
|
|
|
| Base rent |
|
$ |
490,682 |
|
|
$ |
455,018 |
|
| Recoveries from tenants |
|
|
88,593 |
|
|
|
81,934 |
|
| Parking and other |
|
|
24,788 |
|
|
|
24,333 |
|
|
|
|
|
|
|
|
|
|
| Total rental revenue |
|
|
604,063 |
|
|
|
561,285 |
|
| Hotel revenue |
|
|
9,085 |
|
|
|
8,193 |
|
| Development and management services |
|
|
5,328 |
|
|
|
5,216 |
|
|
|
|
|
|
|
|
|
|
| Total revenue |
|
|
618,476 |
|
|
|
574,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Expenses |
|
|
|
|
|
|
|
|
| Operating |
|
|
|
|
|
|
|
|
| Rental |
|
|
221,350 |
|
|
|
206,388 |
|
| Hotel |
|
|
7,576 |
|
|
|
6,797 |
|
| General and administrative |
|
|
28,791 |
|
|
|
29,905 |
|
| Transaction costs |
|
|
327 |
|
|
|
437 |
|
| Depreciation and amortization |
|
|
154,223 |
|
|
|
154,270 |
|
|
|
|
|
|
|
|
|
|
| Total expenses |
|
|
412,267 |
|
|
|
397,797 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating income |
|
|
206,209 |
|
|
|
176,897 |
|
| Other income (expense) |
|
|
|
|
|
|
|
|
| Income from unconsolidated joint ventures |
|
|
14,834 |
|
|
|
2,816 |
|
| Interest and other income |
|
|
1,407 |
|
|
|
1,311 |
|
| Gains from investments in securities |
|
|
393 |
|
|
|
286 |
|
| Interest expense |
|
|
(108,757 |
) |
|
|
(113,554 |
) |
|
|
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
|
114,086 |
|
|
|
67,756 |
|
| Gains on sales of real estate |
|
|
95,084 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
| Net income |
|
|
209,170 |
|
|
|
67,756 |
|
| Net income attributable to noncontrolling interests |
|
|
|
|
|
|
|
|
| Noncontrolling interests in property partnerships |
|
|
(15,208 |
) |
|
|
(4,354 |
) |
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
(3 |
) |
|
|
(619 |
) |
| Noncontrolling interest - common units of the Operating Partnership |
|
|
(20,188 |
) |
|
|
(6,160 |
) |
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. |
|
|
173,771 |
|
|
|
56,623 |
|
| Preferred dividends |
|
|
(2,589 |
) |
|
|
(2,589 |
) |
|
|
|
|
|
|
|
|
|
| Net income attributable to Boston Properties, Inc. common shareholders |
|
$ |
171,182 |
|
|
$ |
54,034 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per common share attributable to Boston Properties, Inc. common shareholders: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
1.12 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common shares outstanding |
|
|
153,230 |
|
|
|
153,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Diluted earnings per common share attributable to Boston Properties, Inc. common shareholders: |
|
|
|
|
|
|
|
|
| Net income |
|
$ |
1.11 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average number of common and common equivalent shares outstanding |
|
|
153,873 |
|
|
|
153,169 |
|
|
|
|
|
|
|
|
|
|
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)
|
|
|
|
|
|
|
|
|
| |
|
Three months ended
March 31, |
|
| |
|
2015 |
|
|
2014 |
|
| |
|
(in thousands, except for per share
amounts) |
|
|
|
|
| Net income attributable to Boston Properties, Inc. common shareholders |
|
$ |
171,182 |
|
|
$ |
54,034 |
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
| Preferred dividends |
|
|
2,589 |
|
|
|
2,589 |
|
| Noncontrolling interest - common units of the Operating Partnership |
|
|
20,188 |
|
|
|
6,160 |
|
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
3 |
|
|
|
619 |
|
| Noncontrolling interests in property partnerships |
|
|
15,208 |
|
|
|
4,354 |
|
| Less: |
|
|
|
|
|
|
|
|
| Gains on sales of real estate |
|
|
95,084 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income before gains on sales of real estate |
|
|
114,086 |
|
|
|
67,756 |
|
|
|
|
| Add: |
|
|
|
|
|
|
|
|
| Real estate depreciation and amortization (2) |
|
|
148,754 |
|
|
|
158,514 |
|
| Less: |
|
|
|
|
|
|
|
|
| Noncontrolling interests in property partnerships’ share of funds from operations |
|
|
36,515 |
|
|
|
19,023 |
|
| Noncontrolling interest - redeemable preferred units of the Operating Partnership |
|
|
3 |
|
|
|
619 |
|
| Preferred dividends |
|
|
2,589 |
|
|
|
2,589 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds from operations (FFO) attributable to the Operating Partnership |
|
|
223,733 |
|
|
|
204,039 |
|
|
|
|
| Less: |
|
|
|
|
|
|
|
|
| Noncontrolling interest - common units of the Operating Partnerships’ share of funds from operations |
|
|
23,348 |
|
|
|
20,195 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Funds from operations attributable to Boston Properties, Inc. |
|
$ |
200,385 |
|
|
$ |
183,844 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Boston Properties, Inc.’s percentage share of funds from operations - basic |
|
|
89.56 |
% |
|
|
90.10 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding - basic |
|
|
153,230 |
|
|
|
153,030 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share basic |
|
$ |
1.31 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted average shares outstanding - diluted |
|
|
153,873 |
|
|
|
154,043 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| FFO per share diluted |
|
$ |
1.30 |
|
|
$ |
1.20 |
|
|
|
|
|
|
|
|
|
|
| (1) |
Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), we calculate Funds from Operations, or
“FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. (computed in accordance with GAAP, including non-recurring items) for gains (or losses) from sales of properties, impairment losses on depreciable real estate of
consolidated real estate, impairment losses on investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate related depreciation and
amortization, and after adjustment for unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure. The use of FFO, combined with the required primary GAAP presentations, has been fundamentally beneficial in improving the
understanding of operating results of REITs among the investing public and making comparisons of REIT operating results more meaningful. Management generally considers FFO to be a useful measure for reviewing our comparative operating and financial
performance because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can vary among owners of identical assets in
similar condition based on historical cost accounting and useful life estimates), FFO can help one compare the operating performance of a company’s real estate between periods or as compared to different companies. |
Our computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance
with the current NAREIT definition or that interpret the current NAREIT definition differently.
FFO should not be considered as an
alternative to net income attributable to Boston Properties, Inc. (determined in accordance with GAAP) as an indication of our performance. FFO does not represent cash generated from operating activities determined in accordance with GAAP, and is
not a measure of liquidity or an indicator of our ability to make cash distributions. We believe that to further understand our performance, FFO should be compared with our reported net income attributable to Boston Properties, Inc. and considered
in addition to cash flows in accordance with GAAP, as presented in our consolidated financial statements.
| (2) |
Real estate depreciation and amortization consists of depreciation and amortization from the Consolidated Statements of Operations of $154,223 and $154,270 and our share of unconsolidated joint venture real estate
depreciation and amortization of $(5,132) and $4,584, less corporate-related depreciation and amortization of $337 and $340 for the three months ended March 31, 2015 and 2014, respectively. |
BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES
|
|
|
|
|
|
|
|
|
| |
|
% Leased by Location |
|
| |
|
March 31, 2015 |
|
|
December 31, 2014 |
|
| Boston |
|
|
88.5 |
% |
|
|
91.4 |
% |
| New York |
|
|
90.4 |
% |
|
|
90.9 |
% |
| San Francisco |
|
|
88.3 |
% |
|
|
88.3 |
% |
| Washington, DC |
|
|
93.8 |
% |
|
|
94.8 |
% |
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
90.3 |
% |
|
|
91.7 |
% |
|
|
|
|
|
|
|
|
|
|
|
| |
|
% Leased by Type |
|
| |
|
March 31, 2015 |
|
|
December 31, 2014 |
|
| Class A Office Portfolio |
|
|
90.6 |
% |
|
|
91.8 |
% |
| Office/Technical Portfolio |
|
|
84.7 |
% |
|
|
87.7 |
% |
|
|
|
|
|
|
|
|
|
| Total Portfolio |
|
|
90.3 |
% |
|
|
91.7 |
% |
|
|
|
|
|
|
|
|
|
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