Reports diluted FFO per share of
$1.28
Reports diluted EPS of $0.90
Boston Properties, Inc. (NYSE: BXP), a real estate
investment trust, reported results today for the fourth quarter
ended December 31, 2015.
Results for the quarter ended December 31, 2015
Funds from Operations (FFO) for the quarter ended
December 31, 2015 were $197.3 million, or $1.28 per share
basic and $1.28 per share diluted. This compares to FFO for the
quarter ended December 31, 2014 of $193.2 million, or $1.26
per share basic and $1.26 per share diluted. The weighted average
number of basic and diluted shares outstanding totaled
approximately 153,602,000 and 153,897,000, respectively, for the
quarter ended December 31, 2015 and 153,128,000 and
153,550,000, respectively, for the quarter ended December 31,
2014.
The Company’s reported FFO of $1.28 per share diluted was less
than the guidance previously provided of $1.39-$1.41 per share
diluted primarily due to the loss from early extinguishment of
debt of $0.13 per share associated with the defeasance of the
mortgage loan collateralized by 100 & 200 Clarendon Street
offset by better than expected portfolio operations of $0.01 per
share.
Net income available to common shareholders was $137.9 million
for the quarter ended December 31, 2015, compared to $174.5
million for the quarter ended December 31, 2014. Net income
available to common shareholders per share (EPS) for the quarter
ended December 31, 2015 was $0.90 basic and $0.90 on a diluted
basis. This compares to EPS for the quarter ended December 31,
2014 of $1.14 basic and $1.14 on a diluted basis. Net income
available to common shareholders for the quarter ended December 31,
2015 includes gains on sales of real estate aggregating
approximately $81.3 million, or $0.48 per share basic and $0.48 per
share on a diluted basis, compared to $126.1 million, or $0.73 per
share basic and $0.73 per share on a diluted basis, for the quarter
ended December 31, 2014.
Results for the year ended December 31, 2015
FFO for the year ended December 31, 2015 was $823.7
million, or $5.37 per share basic and $5.36 per share diluted. This
compares to FFO for the year ended December 31, 2014 of $807.5
million, or $5.27 per share basic and $5.26 per share diluted. The
weighted average number of basic and diluted shares outstanding
totaled 153,471,000 and 153,844,000, respectively, for the year
ended December 31, 2015 and 153,089,000 and 153,620,000,
respectively, for the year ended December 31, 2014.
Net income available to common shareholders was $572.6 million
for the year ended December 31, 2015, compared to $433.1
million for the year ended December 31, 2014. EPS for the year
ended December 31, 2015 was $3.73 basic and $3.72 on a diluted
basis. This compares to EPS for the year ended December 31,
2014 of $2.83 basic and $2.83 on a diluted basis.
The reported results are unaudited and there can be no assurance
that these reported results will not vary from the final
information for the quarter and year ended December 31, 2015.
In the opinion of management, all adjustments considered necessary
for a fair presentation of these reported results have been
made.
As of December 31, 2015, the Company’s portfolio consisted
of 168 properties aggregating approximately 46.5 million square
feet, including 11 properties under construction/redevelopment
totaling approximately 4.6 million square feet. The overall
percentage of leased space for the 154 properties in service
(excluding the Company’s two residential properties and hotel) as
of December 31, 2015 was 91.4%.
Significant events during the fourth quarter included:
- The Company entered into a
forward-starting interest rate swap contract, which fixed the
ten-year swap rate on a notional amount of $25.0 million. The
Company has now entered into forward-starting interest rate swap
contracts which fix the ten-year swap rate at a weighted-average
rate of approximately 2.423% per annum on notional amounts
aggregating $550.0 million. The interest rate swap contracts were
entered into in advance of a financing with a target commencement
date in September 2016 and maturity in September 2026.767 Fifth
Partners LLC [the consolidated entity in which the Company has a
60% interest and that owns 767 Fifth Avenue (the General Motors
Building) in New York City] entered into forward-starting interest
rate swap contracts, including two contracts entered into
subsequent to December 31, 2015, which fix the ten-year swap rate
on notional amounts aggregating $200.0 million. 767 Fifth Partners
LLC has now entered into forward-starting interest rate swap
contracts which fix the 10-year swap rate at a weighted-average
rate of approximately 2.619% per annum on notional amounts
aggregating $450.0 million. These interest rate swap contracts were
entered into in advance of a financing with a target commencement
date in June 2017 and maturity in June 2027.
- On October 1, 2015, the Company used
available cash to repay the mortgage loan collateralized by its
Kingstowne Two and Kingstowne Retail properties located in
Alexandria, Virginia totaling approximately $29.8 million. The
mortgage loan bore interest at a fixed rate of 5.99% per annum and
was scheduled to mature on January 1, 2016. There was no prepayment
penalty.
- On October 1, 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 approximately $13.3 million. Net cash proceeds, which
included reimbursements for certain infrastructure costs, totaled
approximately $13.8 million, resulting in a gain on sale of real
estate totaling approximately $2.0 million. The parcel sold
consisted of approximately 5.8 acres of the Company's approximately
18.3 acre property.
- On October 22, 2015, a joint venture in
which the Company has a 50% interest commenced construction of the
Hub on Causeway at North Station containing approximately 385,000
net rentable square feet of retail and office space located in
Boston, Massachusetts.
- On October 26, 2015, the Company
entered into an agreement to sell its Reston Eastgate property
located in Reston, Virginia. Reston Eastgate is a parcel of land
containing approximately 21.7 acres located at 11011 Sunset Hills
Road. The Company also entered into a development management
agreement with the buyer to develop the site into a Class A office
property totaling approximately 190,000 net rentable square feet
and associated parking garage. The Company expects that the sale
will close by the end of the fourth quarter of 2017. However, the
sale is subject to final zoning approvals and the satisfaction of
customary closing conditions and there can be no assurance that the
sale will be consummated on the terms currently contemplated or at
all. Pending the completion of the sale, the Company has agreed
with the buyer not to disclose the purchase price and other
monetary terms of the transaction.
- On November 1, 2015, the Company
completed and fully placed in-service 535 Mission Street, a Class A
office project with approximately 307,000 net rentable square feet
located in San Francisco, California. The property is 99%
leased.
- On November 1, 2015, the Company
completed and fully placed in-service The Point (formerly 99 Third
Avenue), a retail project with approximately 16,000 net rentable
square feet located in Waltham, Massachusetts. The property is 85%
leased.
- On December 2, 2015, the Company
completed and fully placed in-service 690 Folsom Street, an office
and retail project with approximately 26,000 net rentable square
feet located in San Francisco, California. The property is 100%
leased.
- On December 15, 2015, the Company
legally defeased the mortgage loan collateralized by its 100 &
200 Clarendon Street (formerly known as the John Hancock Tower and
Garage) properties located in Boston, Massachusetts. The mortgage
loan had an outstanding principal balance of $640.5 million, bore
interest at a fixed rate of 5.68% per annum and was scheduled to
mature on January 6, 2017. The cash required for the defeasance was
approximately $667.3 million. As a result of the defeasance, the
Company recognized a loss from early extinguishment of debt of
approximately $22.0 million, consisting of approximately $26.8
million, which is the difference between the purchase price for the
U.S. government securities acquired for the defeasance and the
outstanding principal balance of the mortgage loan, and
approximately $1.4 million of unamortized deferred financing costs,
offset by approximately $4.8 million from the acceleration of the
remaining balance of the historical fair value debt adjustment and
approximately $1.4 million of accrued interest expense through the
effective date of the defeasance.
- On December 17, 2015, the Company
completed the sale of its Innovation Place property for a gross
sale price of $207.0 million. Net cash proceeds totaled
approximately $199.3 million, resulting in a gain on sale of real
estate totaling approximately $79.1 million. Innovation Place,
located in San Jose, California, is a 26-acre site with one
occupied and three vacant existing office buildings and a total of
approximately 574,000 square feet (approximately 463,000 square
feet of which are vacant) located at 3100-3130 Zanker Road. The
remainder of the site is currently used for 1,699 surface parking
spaces, but the land supports an additional 537,000 square feet of
office/R&D development and two parking structures with a total
of approximately 3,000 parking spaces.
- On December 17, 2015, the Company
announced that its Board of Directors declared a special cash
dividend of $1.25 per common share, in addition to the Company's
regular quarterly dividend of $0.65 per common share, which was
paid on January 28, 2016 to shareholders of record as of the close
of business on December 31, 2015. The decision to declare a special
dividend was primarily a result of the sale of approximately $584
million of assets in 2015. The Board of Directors did not make any
change to the Company's policy with respect to regular quarterly
dividends. The payment of the regular quarterly dividend of $0.65
per share plus the special dividend of $1.25 per share resulted in
a total payment of $1.90 per share on January 28, 2016. Holders of
common units of limited partnership interest in Boston Properties
Limited Partnership, the Company's Operating Partnership, as of the
close of business on December 31, 2015 received the same total
distribution per unit on January 28, 2016.
- On December 22, 2015, a joint venture
in which the Company has a 50% interest completed and fully placed
in-service Annapolis Junction Building Eight, a Class A office
project with approximately 126,000 net rentable square feet located
in Annapolis, Maryland. The property is 0% leased.
Transactions completed subsequent to December 31, 2015:
- On January 20, 2016, the Company’s
Operating Partnership completed a public offering of $1.0 billion
in aggregate principal amount of its 3.650% senior unsecured notes
due 2026. The notes were priced at 99.708% of the principal amount
to yield an effective rate (including financing fees) of 3.766% to
maturity. The notes will mature on February 1, 2026, unless earlier
redeemed. The aggregate net proceeds from the offering were
approximately $988.9 million after deducting underwriting discounts
and estimated transaction expenses.
- On January 25, 2016, the Company’s
Compensation Committee approved the 2016 Multi-Year, Long-Term
Incentive Program (the “2016 MYLTIP”) as a performance-based
component of the Company’s overall compensation program. The
Company currently expects that under the Financial Accounting
Standards Board’s Accounting Standards Codification (“ASC”) 718
“Compensation - Stock Compensation,” the 2016 MYLTIP will have an
aggregate value of approximately $17.3 million, which amount will
generally be amortized into earnings over the four-year plan period
under the graded vesting method and has been reflected in the 2016
guidance below.
- On February 1, 2016, the Company
completed the sale of its 415 Main Street property (formerly Seven
Cambridge Center) located in Cambridge, Massachusetts to MIT for a
gross sale price of approximately $105.4 million. As part of its
lease signed on July 14, 2004, MIT was granted a fixed price option
to purchase the building at the beginning of the 11th lease year,
which option was exercised by MIT on October 22, 2014. 415 Main
Street is an office/technical property with approximately 231,000
net rentable square feet occupied by the Broad Institute.
- On February 3, 2016, the Company
entered into a lease termination agreement with a tenant for an
approximately 85,000 square foot lease at its 250 West 55th Street
property located in New York City. The lease was scheduled to
expire on February 28, 2035. In consideration for the termination
of the lease, the tenant paid the Company approximately $45.0
million, which will be recognized in the first quarter of 2016. The
termination income and the corresponding reduction in rental
revenue in future quarters are reflected in the 2016 guidance
below.
EPS and FFO per Share Guidance:
The Company’s guidance for the first quarter and full year 2016
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 the full year 2016 to $5.78 - $5.93 per share
from $5.50 - $5.70 per share. The updated guidance reflects, when
compared to the Company’s prior guidance, an increase in net
operating income from the Company’s property portfolio of $0.05 per
share and an increase from termination income, net of a reduction
in rental income, from a tenant at 250 West 55th Street of $0.21
per share.
First Quarter 2016 Full
Year 2016 Low - High Low - High
Projected EPS (diluted) $
1.05
- $
1.07
$ 2.68 - $ 2.83 Add:
Projected Company Share of Real
EstateDepreciation and Amortization
0.89 - 0.89 3.45 - 3.45 Less:
Projected Company Share of Gains on Sales
ofReal Estate
0.35 - 0.35 0.35 - 0.35 Projected FFO per
Share (diluted) $
1.59
- $
1.61
$ 5.78 - $ 5.93
Boston Properties will host a conference call on Thursday,
February 4, 2016 at 10:00 AM Eastern Time, open to the general
public, to discuss the fourth quarter and full year 2015 results,
the 2016 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) 706-4503 (Domestic) or
(281) 913-8731 (International) and entering the passcode 23619190.
A replay of the conference call will be available through February
19, 2016, by dialing (855) 859-2056 (Domestic) or (404) 537-3406
(International) and entering the passcode 23619190. 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’ fourth 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 A office space, one hotel, four 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 satisfy the closing
conditions to the pending transactions described above, 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 first quarter and full fiscal year 2016, whether as a result of
new information, future events or otherwise.
Financial tables follow.
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited )
December 31, 2015
December 31, 2014 (in thousands, except for share
and par value amounts) ASSETS Real
estate, at cost $ 18,465,405 $ 18,231,978 Construction in progress
763,935 736,311 Land held for future development 252,195 268,114
Less: accumulated depreciation (3,925,894 ) (3,547,659 ) Total real
estate 15,555,641 15,688,744 Cash and cash equivalents 723,718
1,763,079 Cash held in escrows 73,790 487,321 Investments in
securities 20,380 19,459 Tenant and other receivables (net of
allowance for doubtful accounts of $1,197 and $1,142, respectively)
97,865 46,595 Accrued rental income (net of allowance of $2,775 and
$1,499, respectively) 754,883 691,999 Deferred charges, net 732,837
831,744 Prepaid expenses and other assets 185,118 164,432
Investments in unconsolidated joint ventures 235,224 193,394
Total assets $ 18,379,456 $ 19,886,767
LIABILITIES AND EQUITY Liabilities: Mortgage notes payable $
3,438,714 $ 4,309,484 Unsecured senior notes (net of discount of
$10,683 and $12,296, respectively) 5,289,317 5,287,704 Unsecured
line of credit — — Mezzanine notes payable 308,482 309,796 Outside
members' notes payable 180,000 180,000 Accounts payable and accrued
expenses 274,709 243,263 Dividends and distributions payable
327,320 882,472 Accrued interest payable 190,386 163,532 Other
liabilities 483,601 502,255 Total liabilities
10,492,529 11,878,506 Commitments and contingencies —
— Noncontrolling interests: Redeemable preferred
units of the Operating Partnership — 633 Redeemable
interest in property partnership — 104,692 Equity:
Stockholders’ equity attributable to Boston Properties, Inc.:
Excess stock, $.01 par value, 150,000,000 shares authorized, none
issued or outstanding — —
Preferred stock, $.01 par value,
50,000,000 shares authorized; 5.25% Series B cumulative
redeemable preferred stock, $.01 par value, liquidation
preference $2,500 per share, 92,000 shares authorized, 80,000
shares issued and outstanding at December 31, 2015 and December 31,
2014
200,000 200,000
Common stock, $.01 par value, 250,000,000
shares authorized, 153,658,866 and 153,192,845 issued and
153,579,966 and 153,113,945 outstanding at December 31, 2015
and December 31, 2014, respectively
1,536 1,531 Additional paid-in capital 6,305,687 6,270,257
Dividends in excess of earnings (780,952 ) (762,464 )
Treasury common stock at cost, 78,900
shares at December 31, 2015 and December 31, 2014
(2,722 ) (2,722 ) Accumulated other comprehensive loss (14,114 )
(9,304 ) Total stockholders’ equity attributable to Boston
Properties, Inc. 5,709,435 5,697,298 Noncontrolling interests:
Common units of the Operating Partnership 603,092 603,171 Property
partnerships 1,574,400 1,602,467 Total equity
7,886,927 7,902,936 Total liabilities and equity $
18,379,456 $ 19,886,767
BOSTON PROPERTIES,
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Unaudited)
Three months endedDecember
31,
Year ended December 31, 2015
2014 2015 2014
(in thousands, except for per share amounts) Revenue Rental
Base rent $ 493,141 $ 484,011 $ 1,964,732 $ 1,886,339 Recoveries
from tenants 88,576 85,946 355,508 339,365 Parking and other 25,132
25,724 101,981 102,593 Total rental
revenue 606,849 595,681 2,422,221 2,328,297 Hotel revenue 10,939
10,907 46,046 43,385 Development and management services 6,452
7,119 22,554 25,316 Total revenue
624,240 613,707 2,490,821 2,396,998
Expenses Operating Rental 216,642 211,077 872,252 835,290 Hotel
7,888 7,539 32,084 29,236 General and administrative 24,300 23,172
96,319 98,937 Transaction costs 470 640 1,259 3,140 Depreciation
and amortization 164,460 162,430 639,542
628,573 Total expenses 413,760 404,858
1,641,456 1,595,176 Operating income 210,480 208,849
849,365 801,822 Other income (expense) Income from unconsolidated
joint ventures 2,211 2,700 22,770 12,769 Interest and other income
440 1,924 6,777 8,765 Gains (losses) from investments in securities
493 387 (653 ) 1,038 Interest expense (106,178 ) (117,904 )
(432,196 ) (455,743 ) Losses from early extinguishments of debt
(22,040 ) (10,633 ) (22,040 ) (10,633 ) Income before gains on
sales of real estate 85,406 85,323 424,023 358,018 Gains on sales
of real estate 81,332 126,102 375,895 168,039
Net income 166,738 211,425 799,918 526,057 Net income
attributable to noncontrolling interests Noncontrolling interests
in property partnerships (10,143 ) (13,088 ) (149,855 ) (30,561 )
Noncontrolling interest—redeemable preferred units of the Operating
Partnership — (9 ) (6 ) (1,023 ) Noncontrolling interest—common
units of the Operating Partnership (16,098 ) (21,172 ) (66,951 )
(50,862 ) Net income attributable to Boston Properties, Inc.
140,497 177,156 583,106 443,611 Preferred dividends (2,646 ) (2,646
) (10,500 ) (10,500 ) Net income attributable to Boston Properties,
Inc. common shareholders $ 137,851 $ 174,510 $
572,606 $ 433,111 Basic earnings per common share
attributable to Boston Properties, Inc. common shareholders: Net
income $ 0.90 $ 1.14 $ 3.73 $ 2.83
Weighted average number of common shares outstanding 153,602
153,128 153,471 153,089 Diluted earnings per
common share attributable to Boston Properties, Inc. common
shareholders: Net income $ 0.90 $ 1.14 $ 3.72
$ 2.83 Weighted average number of common and common
equivalent shares outstanding 153,897 153,550 153,844
153,308
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)
Three months endedDecember
31,
Year ended December 31, 2015
2014 2015 2014
(in thousands, except for per share amounts) Net
income attributable to Boston Properties, Inc. common shareholders
$ 137,851 $ 174,510 $ 572,606 $ 433,111 Add: Preferred dividends
2,646 2,646 10,500 10,500 Noncontrolling interest - common units of
the Operating Partnership 16,098 21,172 66,951 50,862
Noncontrolling interest - redeemable preferred units of the
Operating Partnership — 9 6 1,023 Noncontrolling interests in
property partnerships 10,143 13,088 149,855 30,561 Less: Gains on
sales of real estate 81,332 126,102 375,895
168,039 Income before gains on sales of real estate 85,406
85,323 424,023 358,018 Add: Real estate depreciation and
amortization (2) 167,968 166,665 644,595 646,463 Less:
Noncontrolling interests in property partnerships' share of funds
from operations 30,828 33,866 139,569 93,864 Noncontrolling
interest - redeemable preferred units of the Operating Partnership
— 9 6 1,023 Preferred dividends 2,646 2,646 10,500
10,500 Funds from operations (FFO) attributable to
the Operating Partnership common unitholders (including Boston
Properties, Inc.) 219,900 215,467 918,543 899,094 Less:
Noncontrolling interest - common units of the Operating
Partnership's share of funds from operations 22,561 22,281
94,828 91,588 Funds from operations
attributable to Boston Properties, Inc. common shareholders $
197,339 $ 193,186 $ 823,715 $ 807,506
Boston Properties, Inc.'s percentage share of funds from operations
- basic 89.74 % 89.66 % 89.68 % 89.81 % Weighted average shares
outstanding - basic 153,602 153,128 153,471
153,089 FFO per share basic $ 1.28 $ 1.26 $
5.37 $ 5.27 Weighted average shares outstanding -
diluted 153,897 153,550 153,844 153,620
FFO per share diluted $ 1.28 $ 1.26 $ 5.36 $
5.26
(1) Pursuant to the revised definition of Funds from Operations
adopted by the Board of Governors of the National Association of
Real Estate Investment Trusts (“NAREIT”), we calculate Funds from
Operations, or “FFO,” by adjusting net income (loss) attributable
to Boston Properties, Inc. common shareholders (computed in
accordance with GAAP, 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. common shareholders
(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 $164,460, $162,430, $639,542 and $628,573 and our
share of unconsolidated joint venture real estate depreciation and
amortization of $3,994, $4,582, $6,556 and $19,251, less
corporate-related depreciation and amortization of $486, $347,
$1,503 and $1,361 for the three months and years ended
December 31, 2015 and 2014, respectively.
BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES
% Leased
by Location December 31, 2015 December 31, 2014
Boston 90.6 % 91.4 % New York 91.5 % 90.9 % San Francisco 93.8 %
88.3 % Washington, DC 91.0 % 94.8 % Total Portfolio 91.4 % 91.7 %
% Leased by Type December 31,
2015 December 31, 2014 Class A Office Portfolio 91.7 %
91.8 % Office/Technical Portfolio 84.2 % 87.7 % Total Portfolio
91.4 % 91.7 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160203006632/en/
Boston Properties, Inc.Michael LaBelle,
617-236-3352Executive Vice President, Chief Financial Officer and
TreasurerorArista Joyner, 617-236-3343Investor Relations
Manager
Boston Properties (NYSE:BXP)
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