EX-99.2 3 dex992.txt PRESS RELEASE DATED 4/24/2001 EXHIBIT 99.2 NEWS BULLETIN FROM: RE: Boston Properties, Inc. 800 Boylston Street, Suite 400 [LETTERHEAD OF BSMG WORLDWIDE] Boston, Ma 02199 (NYSE: BXP) -------------------------------------------------------------------------------- AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD -------------- -------------------------------- Elaine Quinlan Marilynn Meek- General Info. (212) 661-8030 Investor Relations Claire Koeneman - Analyst (312) 266-7800 (617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030 BOSTON PROPERTIES, INC. ANNOUNCES --------------------------------- FIRST QUARTER 2001 RESULTS -------------------------- Reports diluted FFO per share of $0.85 before non-cash accounting charge related to FAS 133 of ($0.02) per share BOSTON, MA, April 24, 2001 - Boston Properties, Inc. (NYSE: BXP) today reported results for the first quarter ended March 31, 2001. Funds from Operations (FFO) for the quarter ended March 31, 2001 were $79.2 million, or $0.89 per share basic and $0.85 per share diluted before a non-cash accounting charge of approximately ($0.02) per share on a diluted basis related to the application of FAS 133, "Accounting for Derivative Instruments and Hedging Activities" for the quarter ended March 31, 2001. The FAS 133 charge relates to the change in fair value during the quarter for certain interest rate protection contracts and other derivatives. This compares to FFO of $54.6 million, or $0.80 per share basic and $0.78 per share diluted for the quarter ended March 31, 2000. This represents a 9.0% year to year increase in diluted FFO per share excluding the charge related to FAS 133. FFO including the charge for the application of FAS 133 was $0.87 per share basic and $0.83 per share diluted for the quarter ended March 31, 2001. The weighted average amount of basic and diluted shares outstanding totaled 88,687,900 and 104,160,181, respectively, for the quarter ended March 31, 2001 and 67,942,675 and 81,380,969, respectively, for the same quarter last year. Revenues were $233.5 million for the quarter ended March 31, 2001, compared to revenues of $210.3 million for the same period in 2000. Net income available to common shareholders for the quarter ended March 31, 2001 was $45.6 million, compared to $31.0 million for the same period in 2000. Income before gain on sale and cumulative effect of a change in accounting principle (related to the adoption of FAS 133) for the quarter ended March 31, 2001 was $0.54 per share basic and $0.52 per share diluted, compared to $0.46 per share basic and $0.45 per share diluted for the same period last year. The reported results are unaudited and there can be no assurance that the results will not vary from the final information submitted on Form 10-Q for the quarter ended March 31, 2001. In the opinion of management, all adjustments considered necessary for a fair presentation of these reported results have been made. As of March 31, 2001, the Company's portfolio consisted of 146 properties comprising more than 39.2 million square feet, including 15 properties under construction totaling 5.4 million square feet. The overall occupancy rate for the properties in service as of March 31, 2001 was 98.4%. Additional highlights of the first quarter included: . The acquisition of a significant interest in Skyline Holdings LLC. Skyline signed a contract on February 7, 2001 to acquire Citigroup Center in New York City from Dai-Ichi Life Investment Properties, Inc. The acquisition of Citigroup Center, a 1.6 million square foot building in Midtown Manhattan, is expected to close on April 25, 2001. . The acquisition of a 4.3 acre site known as 77 Fourth Avenue in Waltham, Massachusetts for approximately $13.0 million on February 13, 2001. The site is expected to support a development of 202,000 square feet. . The disposition of 25-33 Dartmouth Street, an industrial building totaling 78,045 square feet, on March 30, 2001 for net proceeds of approximately $6.6 million. The property was sold using a like-kind exchange technique with the acquisition of a parcel of land known as Crane Meadow in 2000. . The closing of a construction loan secured by the Waltham Weston Corporate Center development in the amount of $70.0 million at a rate of LIBOR + 1.70% and maturing in February 2004. Boston Properties will conduct a conference call tomorrow, April 25, 2001 at 9:30 AM (Eastern Time) to discuss the results of this year's first quarter. The number to call for this interactive teleconference is (888) 747-3510. A replay of the conference call will be available through May 1, 2001 by dialing (888) 266-2086 and entering the passcode 5103224. Additionally, a copy of Boston Properties' first quarter 2001 "Supplemental Operating and Financial Data" will be available on the Investor section of the company's website at http://www.bostonproperties.com. These materials are also ------------------------------- available by contacting Investor Relations at 617-236-3300 or by written request to: Investor Relations Boston Properties 800 Boylston Street Boston, MA 02199 Boston Properties is a fully integrated, self-administered and self-managed real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of Class-A office, industrial and hotel properties. The Company is one of the largest owners and developers of Class-A office properties in the United States, concentrated in four core markets - Boston, Midtown Manhattan, Washington, DC and San Francisco This press release contains forward-looking statements within the meaning of the Federal securities laws. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond Boston Properties control and could materially affect actual results, performance or achievements. These factors include, without limitation, the ability to enter into new leases or renew leases on favorable terms, dependence on tenants' financial condition, the uncertainties of real estate development and acquisition activity, the ability to effectively integrate acquisitions, the costs and availability of financing, the effects of local economic and market conditions, regulatory changes and other risks and uncertainties detailed from time to time in the Company's filings with the Securities and Exchange Commission. Financial tables follow BOSTON PROPERTIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended March 31, -------------------------------- 2001 2000 ----------- ---------- (unaudited and in thousands, except for per share amounts) Revenue Rental: Base rent $ 185,691 $ 170,337 Recoveries from tenants 26,178 23,336 Parking and other 13,746 13,008 ----------- ----------- Total rental revenue 225,615 206,681 Development and management services 3,397 2,863 Interest and other 4,444 710 ----------- ----------- Total revenue 233,456 210,254 ----------- ----------- Expenses Operating 70,343 65,177 General and administrative 9,950 7,408 Interest 47,853 55,215 Depreciation and amortization 34,740 32,231 ----------- ----------- Total expenses 162,886 160,031 ----------- ----------- Income before net derivative losses (SFAS No. 133), minority interests and joint venture income 70,570 50,223 Net derivative losses (SFAS No. 133) (3,055) - Minority interest in property partnership (255) (196) Income from unconsolidated joint ventures 1,127 145 ----------- ----------- Income before minority interest in Operating Partnership 68,387 50,172 Minority interest in Operating Partnership (19,024) (17,552) ----------- ----------- Income before gain on sale of real estate 49,363 32,620 Gain on sale of real estate, net of minority interest 4,654 - ----------- ----------- Income before cumulative effect of a change in accounting principle 54,017 32,620 Cumulative effect of a change in accounting principle, net of minority interest (6,767) - ----------- ----------- Net income before preferred dividend 47,250 32,620 Preferred dividend (1,643) (1,643) ----------- ----------- Net income available to common shareholders $ 45,607 $ 30,977 =========== =========== Basic earnings per share: Income before gain on sale and cumulative effect of a change in accounting principle $ 0.54 $ 0.46 Gain on sale, net of minority interest 0.05 - Cumulative effect of a change in accounting principle, net of minority interest (0.08) - ----------- ----------- Net income available to common shareholders $ 0.51 $ 0.46 =========== =========== Weighted average number of common shares outstanding 88,688 67,943 =========== =========== Diluted earnings per share: Income before gain on sale and cumulative effect of a change in accounting principle $ 0.52 $ 0.45 Gain on sale, net of minority interest 0.05 - Cumulative effect of a change in accounting principle, net of minority interest (0.07) - ----------- ----------- Net income available to common shareholders $ 0.50 $ 0.45 =========== =========== Weighted average number of common and common equivalent shares outstanding 91,171 68,380 =========== ===========
BOSTON PROPERTIES, INC. CONSOLIDATED BALANCE SHEETS
March 31, December 31, 2001 2000 ----------- -------------- (unaudited) (in thousands, except for share amounts) ASSETS ------ Real estate: $ 6,284,655 $ 6,112,779 Less: accumulated depreciation (616,620) (586,719) -------------- ------------- Total real estate 5,668,035 5,526,060 Cash and cash equivalents 241,819 280,957 Escrows 29,861 85,561 Investments in securities 6,060 7,012 Tenant and other receivables, net 24,443 26,852 Accrued rental income, net 97,657 91,684 Deferred charges, net 76,209 77,319 Prepaid expenses and other assets 73,539 41,154 Investments in unconsolidated joint ventures 92,456 89,871 -------------- ------------- Total assets $ 6,310,079 $ 6,226,470 ============== ============= LIABILITIES AND STOCKHOLDERS' EQUITY ------------------------------------ Liabilities: Mortgage notes and bonds payable $ 3,450,347 $ 3,414,891 Accounts payable and accrued expenses 58,542 57,338 Dividends and distributions payable 71,917 71,274 Interest rate contracts 19,774 - Accrued interest payable 8,127 5,599 Other liabilities 56,943 51,926 -------------- ------------- Total liabilities 3,665,650 3,601,028 -------------- ------------- Commitments and contingencies - - -------------- ------------- Minority interest in Operating Partnership 821,575 877,715 -------------- ------------- Series A Convertible Redeemable Preferred Stock, liquidation preference $50.00 per share, 2,000,000 shares issued and outstanding 100,000 100,000 -------------- ------------- Stockholders' equity: Excess stock, $.01 par value, 150,000,000 shares authorized, none issued or outstanding - - Common stock, $.01 par value, 250,000,000 shares authorized, 89,701,122 and 86,630,089 issued and outstanding in 2001 and 2000, respectively 897 866 Additional paid-in capital 1,759,714 1,673,349 Dividends in excess of earnings (15,829) (13,895) Unearned compensation (2,531) (848) Accumulated other comprehensive loss (19,397) (11,745) -------------- ------------- Total stockholders' equity 1,722,854 1,647,727 -------------- ------------- Total liabilities and stockholders' equity $ 6,310,079 $ 6,226,470 ============== =============
BOSTON PROPERTIES, INC. FUNDS FROM OPERATIONS (unaudited and in thousands)
Three months ended March 31, -------------------------------- 2001 2000 -------------------------------- Income before net derivative losses (SFAS No. 133), minority interests and joint venture income $ 70,570 $ 50,223 Add: Real estate depreciation and amortization 35,557 32,052 Income from unconsolidated joint ventures 1,127 145 Less: Net derivative losses (SFAS No. 133) (3,055) Minority property partnership's share of funds from operations (303) (224) Preferred dividends and distributions (8,221) (8,250) ----------- ----------- Funds from operations 95,675 73,946 Add: Net derivative losses (SFAS No. 133) 3,055 - ----------- ----------- Funds from operations before net derivative losses (SFAS No. 133) $ 98,730 $ 73,946 =========== =========== Funds from operations available to common shareholders before net derivative losses (SFAS No. 133) $ 79,201 $ 54,641 =========== =========== Weighted average shares outstanding - basic 88,688 67,943 =========== =========== FFO per share basic before net derivative losses (SFAS No. 133) $ 0.89 $ 0.80 =========== =========== Weighted average shares outstanding - diluted 104,160 81,381 =========== =========== FFO per share diluted before net derivative losses (SFAS No. 133) $ 0.85 $ 0.78 =========== =========== FFO per share diluted after net derivative losses (SFAS No. 133) $ 0.83 $ 0.78 =========== ===========
BOSTON PROPERTIES, INC PORTFOLIO OCCUPANCY Occupancy by Location March 31, 2001 December 31, 2000 -------------- ----------------- Greater Boston 98.8% 99.3% Greater Washington 98.7% 98.5% Midtown Manhattan 99.6% 99.9% Baltimore, MD 99.5% 99.8% Richmond, VA 99.6% 100.0% Princeton/East Brunswick, NJ 98.4% 98.7% Greater San Francisco 95.9% 97.9% Bucks County, PA 100.0% 100.0% -------------- ----------------- Total Portfolio 98.4% 98.9% ============== ================= Occupancy by Type March 31, 2001 December 31, 2000 -------------- ----------------- Class A Office Portfolio 98.7% 99.0% Office/Technical Portfolio 98.5% 98.0% Industrial Portfolio 88.0% 95.9% -------------- ----------------- Total Portfolio 98.4% 98.9% ============== ================= ###