EX-99.1 2 q42020supplemental.htm EX-99.1 Document


                                                    Exhibit 99.1


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Supplemental Operating and Financial Data
for the Quarter Ended December 31, 2020



THE COMPANY
Boston Properties, Inc. (NYSE: BXP) (“Boston Properties,” “BXP” or the “Company”) is the largest publicly-traded developer, owner and manager of Class A office properties in the United States, concentrated in five markets -  Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company is a fully integrated real estate company, organized as a real estate investment trust (REIT), that develops, manages, operates, acquires and owns a diverse portfolio of primarily Class A office space. The Company’s complete portfolio totals 51.2 million square feet and 196 properties, including six properties under construction/redevelopment, and it consists of 177 office properties, 12 retail properties, six residential properties and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record of developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for a diverse array of creditworthy tenants. Boston Properties actively works to promote its growth and operations in a sustainable and responsible manner.  The Company has earned nine consecutive Global Real Estate Sustainability Benchmark (GRESB) Green Stars and the highest GRESB 5-star Rating. Boston Properties, an S&P 500 Company, was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde and became a public company in 1997.


FORWARD-LOOKING STATEMENTS
This Supplemental package contains “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. You can identify these statements by our use of the words “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. These statements are based on our current expectations of future events. 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. If our underlying assumptions prove inaccurate, or known or unknown risks or uncertainties materialize, actual results could differ materially from those expressed or implied by the forward-looking statement. These factors include, without limitation, uncertainties and risks related to the impact of the COVID-19 global pandemic, including the duration, scope and severity of the pandemic domestically and internationally; federal, state and local government actions and restrictive measures implemented in response to COVID-19, the effectiveness of such measures and the direct and indirect impact of such measures on our and our tenants' businesses, financial condition, results of operation, cash flows, liquidity and performance, and the U.S. and international economy and economic activity generally; whether new or existing actions/or measures continue to result in increasing unemployment that impact the ability of our residential tenants to generate sufficient income to pay, or make them unwilling to pay, rent in full or at all in a timely manner; the health, continued service and availability of our personnel, including our key personnel and property management teams; the effectiveness or lack of effectiveness of government relief in providing assistance to individuals and large and small businesses, including our tenants, that have suffered significant adverse effects from COVID-19; and the extent of construction delays on our development/redevelopment projects due to work-stoppage orders or disruptions in the supply of materials which could result in our failure to meet the development milestones set forth in any applicable lease agreement, delay the commencement or completion of construction and our anticipated lease-up plans for a development/redevelopment project or our overall development pipeline that may cause returns on investment to be less than projected, and/or increase the costs of construction of new or existing projects. In addition to the risks specific to COVID-19, other 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. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. 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, except as may be required by law.


NON-GAAP FINANCIAL MEASURES
This Supplemental package includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are provided within this Supplemental package. Definitions of these non-GAAP financial measures and statements 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, and, if applicable, the other purposes for which management uses the measures, can be found in the Definitions section of this Supplemental starting on page 56.

The Company also presents “BXP’s Share” of certain of these measures, which are non-GAAP financial measures that are calculated as the consolidated amount calculated in accordance with GAAP, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest and, in some cases, after priority allocations), minus the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ percentage ownership interests and, in some cases, after income allocation to private REIT shareholders and their share of fees due to the Company).  Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because the Company has several significant joint ventures and, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, management believes that presenting BXP Share of various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its true economic interest in these joint ventures.  The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, financings and guarantees, liquidations and other matters. As a result, presentations of “BXP’s Share” of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP. Unless noted otherwise, reconciliations of “BXP’s Share” of these financial measures can be found in the Reconciliations section of this Supplemental package starting on page 60.




GENERAL INFORMATION
Corporate HeadquartersTrading SymbolInvestor RelationsInquiries
800 Boylston StreetBXPBoston Properties, Inc.Inquiries should be directed to
Suite 1900800 Boylston Street, Suite 1900Sara Buda
Boston, MA 02199Stock Exchange ListingBoston, MA 02199Vice President, Investor Relations
www.bxp.comNew York Stock Exchangeinvestors.bxp.comat 617.236.3429 or
(t) 617.236.3300investorrelations@bxp.comsbuda@bxp.com
(f) 617.236.3311(t) 617.236.3429
Michael E. LaBelle
Executive Vice President, Chief Financial Officer
at 617.236.3352 or
mlabelle@bxp.com
(Cover photo: 10 and 20 CityPoint, Waltham, MA)




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Q4 2020
Table of contents
Page
OVERVIEW
Company Profile
Guidance
FINANCIAL INFORMATION
COVID-19 Impact
Financial Highlights
Consolidated Balance Sheets
Consolidated Income Statements
Funds From Operations (FFO)
Funds Available for Distribution (FAD)
Net Operating Income (NOI)
Same Property Net Operating Income (NOI) by Reportable Segment
Capital Expenditures, Tenant Improvement Costs and Leasing Commissions
Acquisitions and Dispositions
DEVELOPMENT ACTIVITY
Construction in Progress
Land Parcels and Purchase Options
LEASING ACTIVITY
Leasing Activity
PROPERTY STATISTICS
Portfolio Overview
Residential and Hotel Performance
In-Service Property Listing
Top 20 Tenants Listing and Portfolio Tenant Diversification
Occupancy by Location
DEBT AND CAPITALIZATION
Capital Structure
Debt Analysis
Senior Unsecured Debt Covenant Compliance Ratios
Net Debt to EBITDAre
Debt Ratios
JOINT VENTURES
Consolidated Joint Ventures
Unconsolidated Joint Ventures
LEASE EXPIRATION ROLL-OUT
Total In-Service Properties
Boston
Los Angeles
New York
San Francisco
Washington, DC
CBD
Suburban
RESEARCH COVERAGE, DEFINITIONS AND RECONCILIATIONS
Research Coverage
Definitions
Reconciliations
Consolidated Income Statement - Prior Year
Funds From Operations (FFO) - Prior Year
Funds Available for Distribution (FAD) - Prior Year






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Q4 2020
Company profile


SNAPSHOT
(as of December 31, 2020)
Fiscal Year-EndDecember 31
Total Properties (includes unconsolidated joint ventures)196
Total Square Feet (includes unconsolidated joint ventures)51.2 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (MYLTIP) Units) on an as-converted basis 1
173.1 million
Closing Price, at the end of the quarter$94.53 per share
Dividend - Quarter/Annualized $0.98/$3.92 per share
Dividend Yield4.1%
Consolidated Market Capitalization 1
$29.6 billion
BXP’s Share of Market Capitalization 1, 2
$29.6 billion
Senior Debt RatingsBBB+ (S&P); Baa1 (Moody’s)
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 key tenets of our business strategy are to:
maintain a keen focus on select markets that exhibit the strongest economic growth and investment characteristics over time - currently Boston, Los Angeles, New York, San Francisco and Washington, DC;
invest in the highest quality buildings (primarily office) with unique amenities and desirable locations that are able to maintain high occupancy rates and achieve premium rental rates through economic cycles;
maintain scale and a full-service real estate capability (leasing, development, construction and property management) in our markets to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle, (3) provide superior service to our tenants and (4) develop and manage our assets in the most sustainable manner possible;
be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing new properties in times of growth and selling assets at attractive prices, resulting in continuous portfolio refreshment;
ensure a strong balance sheet to maintain consistent access to capital and the resultant ability to make new investments at opportune points in time; and
foster a culture and reputation of integrity, excellence and purposefulness, making us the employer of choice for talented real estate professionals, the landlord and developer of choice for our customers, as well as the counterparty of choice for real estate industry participants.
MANAGEMENT
Board of DirectorsManagement
Joel I. KleinChairman of the BoardOwen D. ThomasChief Executive Officer
Owen D. ThomasChief Executive OfficerDouglas T. LindePresident
Douglas T. LindePresidentRaymond A. RitcheySenior Executive Vice President
Kelly A. AyotteChair of the Compensation CommitteeMichael E. LaBelleExecutive Vice President, Chief Financial Officer and Treasurer
Bruce W. Duncan
Karen E. DykstraPeter D. JohnstonExecutive Vice President, Washington, DC Region
Carol B. EinigerBryan J. KoopExecutive Vice President, Boston Region
Diane J. HoskinsRobert E. PesterExecutive Vice President, San Francisco Region
Matthew J. LustigChair of Nominating & Corporate Governance CommitteeJohn F. PowersExecutive Vice President, New York Region
Frank D. BurtSenior Vice President and Chief Legal Officer
David A. TwardockChair of Audit CommitteeDonna D. GarescheSenior Vice President and Chief Human Resources Officer
William H. Walton, III
Michael R. WalshSenior Vice President and Chief Accounting Officer
James J. Whalen
Senior Vice President and Chief Information & Technology Officer


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1For additional detail, see page 29.
2For the Company’s definitions and related disclosures, see the Definitions and Reconciliations sections of this Supplemental package starting on page 56.

1


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Q4 2020
Guidance

The Company’s guidance for the first quarter 2021 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (EPS) and diluted funds from operations (FFO) per common share attributable to Boston Properties, Inc. common shareholders 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, the timing of the lease-up of available space and the earnings impact of the events referenced in the Company’s earnings release issued on January 26, 2021 and otherwise referenced during the Company’s conference call scheduled for January 27, 2021.  Except as otherwise publicly disclosed, the estimates do not include any material (1) possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, (2) other possible capital markets activity, (3) possible future write-offs of accounts receivable and accrued rent balances or (4) 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, impairment losses on depreciable real estate 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 on depreciable real estate or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 58. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.
First Quarter 2021
LowHigh
Projected EPS (diluted)$0.53 $0.57 
Add:
Projected Company share of real estate depreciation and amortization1.00 1.00 
Projected FFO per share (diluted)$1.53 $1.57 




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Q4 2020
COVID-19 Impact

Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. Set forth below are the details related to the effects of the COVID-19 pandemic to the Company’s operations for the three months ended December 31, 2020.
(unaudited and dollars in thousands)
For the fourth quarter of 2020, Revenue was $665,089 and Net income attributable to Boston Properties, Inc. common shareholders was $7,310. Included in Net income attributable to Boston Properties, Inc. common shareholders for Q4 2020 is:
a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.
For the fourth quarter of 2019, Revenue was $757,501 and Net income attributable to Boston Properties, Inc. common shareholders was $140,824.

BXP’s Share of Revenue1 for the fourth quarter of 2020 was $625,972, marking a decrease of $96,675 from $722,647 for Q4 2019. Included in BXP’s Share for Q4 2020 is an aggregate of $63,601 of primarily COVID-19 related decreases consisting of:
$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,
$333 of write-offs associated with accounts receivable2,
$12,198 decrease in parking and other revenue2, and
$11,329 decrease due to limited occupancy at our only hotel.

Funds from Operations (“FFO”) attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO)1, 3 for Q4 2020 was $236,383, marking a decrease of $86,514 from $322,897 for Q4 2019. Included in Q4 2020 is an aggregate of $56,461 of BXP’s Share of primarily COVID-19 related decreases consisting of:
$39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,
$333 of write-offs associated with accounts receivable2,
$12,198 decrease in parking and other revenue2, and
$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income)1, 4 was $357,713, marking a decrease of $63,741 from $421,454 for Q4 2019. Included in Q4 2020 is an aggregate of $47,850 of BXP’s Share of primarily COVID-19 related decreases consisting of:
$31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent)2,
$292 of write-offs associated with accounts receivable2,
$11,832 decrease in parking and other revenue2, and
$4,189 decrease in NOI due to limited occupancy at our only hotel.

BXP’s Share of Same Property NOI (excluding termination income) - cash1, 4 was $355,284, marking a decrease of $27,517 from $382,801 for Q4 2019. Included in Q4 2020 is an aggregate of $32,714 of BXP’s Share of primarily COVID-19 related decreases consisting of:
$16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,
$292 of write-offs associated with accounts receivable2,
$11,832 decrease in parking and other revenue2, and
$4,189 decrease in NOI due to limited occupancy at our only hotel.

Funds Available for Distribution (“FAD”)1, 5 was $161,274 for Q4 2020, a decrease of $24,554 from $185,828 for Q4 2019. The distributions to common shareholders and unitholders (excluding any special distributions) were $169,719 for Q4 2020. Included in Q4 2020 is an aggregate of $35,871 of BXP’s Share of primarily COVID-19 related decreases consisting of:
$19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals2,
$333 of write-offs associated with accounts receivable2,
$12,198 decrease in parking and other revenue2, and
$4,189 decrease in NOI due to limited occupancy at our only hotel.
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1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
2For additional information, see page 60.
3For quantitative reconciliations of FFO for the three months ended December 31, 2020 and December 31, 2019, see pages 8 and 67, respectively.
4For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.
5For quantitative reconciliations of FAD for the three months ended December 31, 2020 and December 31, 2019, see pages 10 and 68, respectively.
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Q4 2020
Financial highlights

(unaudited and in thousands, except ratios and per share amounts)
Three Months Ended
31-Dec-2030-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $89,854 
Net income attributable to Boston Properties, Inc. per share - diluted$0.05 $0.58 
FFO attributable to Boston Properties, Inc. common shareholders 1
$213,108 $243,978 
Diluted FFO per share 1
$1.37 $1.57 
Dividends per common share$0.98 $0.98 
Funds available for distribution to common shareholders and common unitholders (FAD) 2
$161,274 $153,481 
Selected items:
Revenue$665,089 $693,268 
Recoveries from tenants$99,562 $105,682 
Service income from tenants$1,061 $967 
BXP’s Share of revenue 3
$625,972 $664,711 
BXP’s Share of straight-line rent 3
$(465)$40,478 
BXP’s Share of write-offs associated with accrued rent (all of which was included within straight-line rent) 3
$(39,741)$(5,931)
BXP’s Share of write-offs associated with accounts receivable (all of which was included within lease revenue) 3
$(333)$(3,790)
BXP’s Share of fair value lease revenue 3, 4
$1,598 $979 
BXP’s Share of termination income 3
$1,227 $2,850 
Ground rent expense$3,451 $3,455 
Capitalized interest$12,552 $13,463 
Capitalized wages$3,303 $3,409 
Loss from unconsolidated joint ventures 5
$(79,700)$(6,873)
BXP’s share of FFO from unconsolidated joint ventures 6
$1,980 $13,540 
Net income attributable to noncontrolling interests in property partnerships$13,980 $15,561 
FFO attributable to noncontrolling interests in property partnerships 7
$29,890 $31,394 
Balance Sheet items:
Above-market rents (included within Prepaid Expenses and Other Assets)$4,365 $5,640 
Below-market rents (included within Other Liabilities)$27,401 $29,272 
Accrued rental income liability (included within Other Liabilities)$125,610 $125,442 
Ratios:
Interest Coverage Ratio (excluding capitalized interest) 8
3.38 3.34 
Interest Coverage Ratio (including capitalized interest) 8
3.04 2.97 
Fixed Charge Coverage Ratio 8
2.44 2.47 
BXP’s Share of Net Debt to BXP’s Share of EBITDAre 9
8.07 7.32 
Change in BXP’s Share of Same Store Net Operating Income (NOI) (excluding termination income) 10
(15.1)%(8.9)%
Change in BXP’s Share of Same Store NOI (excluding termination income) - cash 10
(7.2)%(12.5)%
FAD Payout Ratio 2
105.24 %110.57 %
Operating Margins [(rental revenue - rental expense)/rental revenue] 60.9 %62.2 %
Occupancy of In-Service Properties90.1 %91.1 %
Capitalization:
Consolidated Debt$13,047,758 $13,048,161 
BXP’s Share of Debt 11
$13,006,767 $12,966,235 
Consolidated Market Capitalization$29,610,145 $27,147,609 
Consolidated Debt/Consolidated Market Capitalization44.07 %48.06 %
BXP’s Share of Market Capitalization 11
$29,569,154 $27,065,683 
BXP’s Share of Debt/BXP’s Share of Market Capitalization 11
43.99 %47.91 %
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1For a quantitative reconciliation of FFO attributable to Boston Properties, Inc. common shareholders and Diluted FFO per share, see page 8.
2For a quantitative reconciliation of FAD, see page 10. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
4Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.
5Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.
6For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.
7For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.
8For a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 33.
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Q4 2020
Financial highlights (continued)

9Includes write-offs associated with accrued rent (all of which was included within rental revenue) due to the COVID-19 pandemic. Because annualizing the amount of the write-offs distorts the ratio in such a way that makes period-to-period (including quarterly to annual) comparisons of our leverage more difficult, management believes that annualizing the write-offs is inappropriate in light of the purposes for which it presents these ratios. Excluding these write-offs, BXP’s Share of Net Debt to BXP’s Share of EBITDAre (Annualized) would have been 7.26x and 7.21x for the three months ended December 31, 2020 and September 30, 2020, respectively. For additional information and a quantitative reconciliation for the three months ended December 31, 2020 and September 30, 2020, see page 32.
10For a quantitative reconciliation for the three months ended December 31, 2020, see page 13.
11For a quantitative reconciliation for December 31, 2020, see page 29.
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Q4 2020
Consolidated Balance Sheets

(unaudited and in thousands)
31-Dec-2030-Sep-20
ASSETS
Real estate 21,649,383 $21,554,453 
Construction in progress 868,773 769,846 
Land held for future development 450,954 446,392 
Right of use assets - finance leases 237,393 237,382 
Right of use assets - operating leases146,406 146,973 
Less accumulated depreciation(5,534,102)(5,413,709)
Total real estate17,818,807 17,741,337 
Cash and cash equivalents1,668,742 1,714,783 
Cash held in escrows50,587 50,006 
Investments in securities39,457 34,934 
Tenant and other receivables, net77,411 76,330 
Related party note receivable, net77,552 77,592 
Notes receivable, net18,729 25,304 
Accrued rental income, net1,122,502 1,111,078 
Deferred charges, net640,085 644,036 
Prepaid expenses and other assets33,840 106,524 
Investments in unconsolidated joint ventures1,310,478 1,377,291 
Total assets$22,858,190 $22,959,215 
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable, net$2,909,081 $2,912,494 
Unsecured senior notes, net9,639,287 9,636,397 
Unsecured line of credit— — 
Unsecured term loan, net499,390 499,270 
Lease liabilities- finance leases 236,492 233,288 
Lease liabilities - operating leases201,713 201,337 
Accounts payable and accrued expenses336,264 345,959 
Dividends and distributions payable171,082 171,070 
Accrued interest payable106,288 88,826 
Other liabilities 412,084 369,932 
Total liabilities14,511,681 14,458,573 
Commitments and contingencies— — 
Redeemable deferred stock units6,897 5,604 
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 December 31, 2020 and September 30, 2020
200,000 200,000 
Common stock, $0.01 par value, 250,000,000 shares authorized, 155,797,725 and 155,715,200 issued and 155,718,825 and 155,636,300 outstanding at December 31, 2020 and September 30, 2020, respectively
1,557 1,556 
Additional paid-in capital6,356,791 6,348,076 
Dividends in excess of earnings(509,653)(364,720)
Treasury common stock at cost, 78,900 shares at December 31, 2020 and September 30, 2020
(2,722)(2,722)
Accumulated other comprehensive loss(49,890)(52,622)
Total stockholders’ equity attributable to Boston Properties, Inc.5,996,083 6,129,568 
Noncontrolling interests:
Common units of the Operating Partnership616,596 634,796 
Property partnerships1,726,933 1,730,674 
Total equity8,339,612 8,495,038 
Total liabilities and equity$22,858,190 $22,959,215 
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Q4 2020
Consolidated Income Statements 1

(unaudited and in thousands, except per share amounts)
Three Months Ended
31-Dec-2030-Sep-20
Revenue
Lease$639,357 $666,674 
Parking and other15,903 16,327 
Hotel revenue464 90 
Development and management services 6,356 7,281 
Direct reimbursements of payroll and related costs from management services contracts3,009 2,896 
Total revenue665,089 693,268 
Expenses
Operating117,891 120,833 
Real estate taxes138,308 137,222 
Demolition costs(5)206 
Hotel operating1,178 3,164 
General and administrative 2
31,053 27,862 
Payroll and related costs from management services contracts3,009 2,896 
Transaction costs277 307 
Depreciation and amortization168,013 166,456 
Total expenses459,724 458,946 
Other income (expense)
Loss from unconsolidated joint ventures 3
(79,700)(6,873)
Gains (losses) on sales of real estate5,259 (209)
Gains from investments in securities 2
4,296 1,858 
Interest and other income (loss)1,676 (45)
Interest expense(111,991)(110,993)
Net income24,905 118,060 
Net income attributable to noncontrolling interests
Noncontrolling interest in property partnerships(13,980)(15,561)
Noncontrolling interest - common units of the Operating Partnership 4
(990)(10,020)
Net income attributable to Boston Properties, Inc.9,935 92,479 
Preferred dividends(2,625)(2,625)
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $89,854 
INCOME PER SHARE OF COMMON STOCK (EPS)
Net income attributable to Boston Properties, Inc. per share - basic$0.05 $0.58 
Net income attributable to Boston Properties, Inc. per share - diluted$0.05 $0.58 














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1Commencing in March 2020, the COVID-19 pandemic began to negatively impact the United States economy and the Company, and it continues to do so. For additional detail, see page 60.
2General and administrative expense includes $4.3 million and $1.9 million and Gains from investments in securities include $4.3 million and $1.9 million for the three months ended December 31, 2020 and September 30, 2020, respectively, related to the Company’s deferred compensation plan.
3Includes a $60,524 non-cash impairment charge related to the Company’s investment in Dock 72, an unconsolidated joint venture property in Brooklyn, New York in which the Company has a 50% interest. The charge is the result of an increase in costs and an extension of the projected period to fully lease the property due to the COVID-19 pandemic, resulting in a lower current fair value.
4For additional detail, see page 8.
7


 image141.jpg
Q4 2020
Funds from operations (FFO) 1

(unaudited and dollars in thousands, except per share amounts)
Three Months Ended
31-Dec-2030-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $89,854 
Add:
Preferred dividends2,625 2,625 
Noncontrolling interest - common units of the Operating Partnership990 10,020 
Noncontrolling interests in property partnerships13,980 15,561 
Net income24,905 118,060 
Add:
Depreciation and amortization expense168,013 166,456 
Noncontrolling interests in property partnerships' share of depreciation and amortization 2
(15,910)(15,833)
BXP's share of depreciation and amortization from unconsolidated joint ventures 3
21,168 20,413 
Corporate-related depreciation and amortization(441)(444)
Impairment loss on investment in unconsolidated joint venture60,524 — 
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures12 — 
Gains (losses) on sales of real estate5,259 (209)
Noncontrolling interests in property partnerships13,980 15,561 
Preferred dividends2,625 2,625 
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (Basic FFO) 4
236,383 270,675 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of FFO23,275 26,697 
FFO attributable to Boston Properties, Inc. common shareholders$213,108 $243,978 
Boston Properties, Inc.’s percentage share of Basic FFO 90.15 %90.14 %
Noncontrolling interest’s - common unitholders percentage share of Basic FFO9.85 %9.86 %
Basic FFO per share$1.37 $1.57 
Weighted average shares outstanding - basic155,682 155,645 
Diluted FFO per share$1.37 $1.57 
Weighted average shares outstanding - diluted155,731 155,670 

RECONCILIATION TO DILUTED FFO
Three Months Ended
31-Dec-2030-Sep-20
Basic FFO$236,383 $270,675 
Add:
Effect of dilutive securities - stock-based compensation— — 
Diluted FFO236,383 270,675 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of diluted FFO23,268 26,693 
Boston Properties, Inc.’s share of Diluted FFO$213,115 $243,982 

RECONCILIATION OF SHARES/UNITS FOR DILUTED FFO
Three Months Ended
31-Dec-2030-Sep-20
Shares/units for Basic FFO172,685 172,677 
Add:
Effect of dilutive securities - stock-based compensation (shares/units)49 25 
Shares/units for Diluted FFO172,734 172,702 
Less:
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units)17,003 17,032 
Boston Properties, Inc.’s share of shares/units for Diluted FFO155,731 155,670 
Boston Properties, Inc.’s percentage share of Diluted FFO90.16 %90.14 %

_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.
3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.
8


 image141.jpg
Q4 2020
Funds from operations (FFO) 1 (continued)


4Basic FFO for Q4 2020 decreased by $86,514 from $322,897 for Q4 2019. For a reconciliation of Basic FFO to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 67. Included in the Q4 2020 amounts are BXP’s Share of: $39,741 of write-offs associated with accrued rent (all of which was included within straight-line rent), $333 of write-offs associated with accounts receivable, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 Basic FFO by $56,461. For additional information, see page 60.
9


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Q4 2020
Funds available for distributions (FAD) 1

(dollars in thousands)
Three Months Ended
31-Dec-2030-Sep-20
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $89,854 
Add:
Preferred dividends2,625 2,625 
Noncontrolling interest - common units of the Operating Partnership990 10,020 
Noncontrolling interests in property partnerships13,980 15,561 
Net income24,905 118,060 
Add:
Depreciation and amortization expense168,013 166,456 
Noncontrolling interests in property partnerships’ share of depreciation and amortization 2
(15,910)(15,833)
BXP’s share of depreciation and amortization from unconsolidated joint ventures 3
21,168 20,413 
Corporate-related depreciation and amortization(441)(444)
Impairment loss on investment in unconsolidated joint venture60,524 — 
Less:
Gain on sale of real estate included within loss from unconsolidated joint ventures12 — 
Gains (losses) on sales of real estate5,259 (209)
Noncontrolling interests in property partnerships13,980 15,561 
Preferred dividends2,625 2,625 
Basic FFO236,383 270,675 
Add:
BXP’s Share of lease transaction costs that qualify as rent inducements 1, 4
2,580 2,965 
BXP’s Share of hedge amortization 1
1,446 1,446 
BXP’s Share of straight-line ground rent expense adjustment 1, 5
1,216 940 
Stock-based compensation7,990 8,253 
Non-real estate depreciation441 444 
Unearned portion of capitalized fees from consolidated joint ventures 6
704 660 
Less:
BXP’s Share of straight-line rent 1
(465)40,478 
BXP’s Share of fair value lease revenue 1, 7
1,598 979 
BXP’s Share of non-cash termination income adjustment (fair value lease amounts) 1
(11)828 
BXP’s Share of 2nd generation tenant improvements and leasing commissions 1
61,601 67,826 
BXP’s Share of maintenance capital expenditures 1, 8
26,730 21,722 
Hotel improvements, equipment upgrades and replacements33 69 
Funds available for distribution to common shareholders and common unitholders (FAD) 9 (A)
$161,274 $153,481 
Distributions to common shareholders and unitholders (excluding any special distributions) (B)
$169,719 $169,701 
FAD Payout Ratio1 (B÷A)
105.24 %110.57 %

_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
2For a quantitative reconciliation for the three months ended December 31, 2020, see page 35.
3For a quantitative reconciliation for the three months ended December 31, 2020, see page 39.
4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.
5Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2023 with no payments thereafter. The Company is recognizing this expense on a straight-line basis over the 99-year term of the ground and air rights lease, see page 4.
6See page 62 for additional information.
7Represents the net adjustment for above- and below-market leases that are amortized over the terms of the respective leases in place at the property acquisition dates.
8Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures.
9FAD for Q4 2020 decreased by $24,554 from $185,828 for Q4 2019. For a reconciliation of FAD to Net income attributable to Boston Properties, Inc. common shareholders for Q4 2019, see page 68. Included in the Q4 2020 amounts are BXP’s Share of: $333 of write-offs associated with accounts receivable, a $19,151 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, a $12,198 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased Q4 2020 FAD by $35,871. For additional information, see page 60.
10



 image141.jpg
Q4 2020
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI)
(in thousands)
Three Months Ended
31-Dec-2031-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $140,824 
Preferred dividends2,625 2,625 
Net income attributable to Boston Properties, Inc.9,935 143,449 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership990 16,222 
Noncontrolling interest in property partnerships13,980 16,338 
Net income24,905 176,009 
Add:
Interest expense111,991 102,880 
Loss from early extinguishments of debt— 1,530 
Depreciation and amortization expense168,013 169,897 
Transaction costs277 569 
Payroll and related costs from management services contracts3,009 2,159 
General and administrative expense31,053 32,797 
Less:
Interest and other income (loss)1,676 4,393 
Gains from investments in securities4,296 2,177 
Gains (losses) on sales of real estate5,259 (57)
Loss from unconsolidated joint ventures(79,700)(936)
Direct reimbursements of payroll and related costs from management services contracts3,009 2,159 
Development and management services revenue 6,356 10,473 
Net Operating Income (NOI)398,352 467,632 
Add:
BXP’s share of NOI from unconsolidated joint ventures 1
13,336 24,587 
Less:
Partners’ share of NOI from consolidated joint ventures (after income allocation to private REIT shareholders) 2
40,639 45,093 
BXP’s Share of NOI 371,049 447,126 
Less:
Termination income551 1,397 
BXP’s share of termination income from unconsolidated joint ventures 1
771 — 
Add:
Partners’ share of termination income from consolidated joint ventures 2
95 — 
BXP’s Share of NOI (excluding termination income) $369,822 $445,729 
Net Operating Income (NOI)$398,352 $467,632 
Less:
Termination income551 1,397 
NOI from non Same Properties (excluding termination income) 3
14,225 22,349 
Same Property NOI (excluding termination income)383,576 443,886 
Less:
Partners’ share of NOI from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 2
40,544 45,093 
Add:
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3
(76)206 
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) 1
12,565 24,587 
Less:
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) 3
(2,192)2,132 
BXP’s Share of Same Property NOI (excluding termination income)$357,713 $421,454 
_____________
1For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.
2For a quantitative reconciliation for the three months ended December 31, 2020, see pages 62-63.
3Pages 23-26 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2020 and therefore are no longer a part of the Company’s property portfolio.
11


 image141.jpg
Q4 2020
Reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of same property net operating income (NOI) - cash

(in thousands)
Three Months Ended
31-Dec-2031-Dec-19
Net income attributable to Boston Properties, Inc. common shareholders$7,310 $140,824 
Preferred dividends2,625 2,625 
Net income attributable to Boston Properties, Inc.9,935 143,449 
Net income attributable to noncontrolling interests:
Noncontrolling interest - common units of the Operating Partnership990 16,222 
Noncontrolling interest in property partnerships13,980 16,338 
Net income24,905 176,009 
Add:
Interest expense111,991 102,880 
Loss from early extinguishments of debt— 1,530 
Depreciation and amortization expense168,013 169,897 
Transaction costs277 569 
Payroll and related costs from management services contracts3,009 2,159 
General and administrative expense31,053 32,797 
Less:
Interest and other income (loss)1,676 4,393 
Gains from investments in securities4,296 2,177 
Gains (losses) on sales of real estate5,259 (57)
Loss from unconsolidated joint ventures(79,700)(936)
Direct reimbursements of payroll and related costs from management services contracts3,009 2,159 
Development and management services revenue 6,356 10,473 
Net Operating Income (NOI)398,352 467,632 
Less:
Straight-line rent13,187 40,460 
Fair value lease revenue614 2,965 
Termination income551 1,397 
Add:
Straight-line ground rent expense adjustment 1
799 843 
Lease transaction costs that qualify as rent inducements 2
1,333 2,170 
NOI - cash (excluding termination income)386,132 425,823 
Less:
NOI - cash from non Same Properties (excluding termination income) 3
12,702 21,688 
Same Property NOI - cash (excluding termination income)373,430 404,135 
Less:
Partners’ share of NOI - cash from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 4
34,966 41,197 
Add:
Partners’ share of NOI - cash from non Same Properties from consolidated joint ventures (excluding termination income and after income allocation to private REIT shareholders) 3, 4
(111)273 
BXP’s share of NOI - cash from unconsolidated joint ventures (excluding termination income) 5
21,175 24,590 
Less:
BXP’s share of NOI - cash from non Same Properties from unconsolidated joint ventures (excluding termination income) 3, 5
4,244 5,000 
BXP’s Share of Same Property NOI - cash (excluding termination income)$355,284 $382,801 
_____________
1In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $144 and $173 for the three months ended December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company has remaining lease payments aggregating approximately $25.9 million, all of which it expects to incur by the end of 2023 with no payments thereafter. Under GAAP, the Company recognizes expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2023 may vary significantly.
2Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 10.
3Pages 23-26 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, Same Properties exclude properties that were sold prior to December 31, 2020 and therefore are no longer a part of the Company’s property portfolio.
4For a quantitative reconciliation for the three months ended December 31, 2020, see page 63.
5For a quantitative reconciliation for the three months ended December 31, 2020, see page 65.
12


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Q4 2020
Same property net operating income (NOI) by reportable segment

(dollars in thousands)
Office 1
Hotel & Residential
Three Months Ended$%Three Months Ended$%
31-Dec-2031-Dec-19ChangeChange31-Dec-2031-Dec-19ChangeChange
Rental Revenue 2
$624,363 $689,251 $9,402 $21,996 
Less: Termination income551 1,397 — — 
Rental revenue (excluding termination income) 2
623,812 687,854 $(64,042)(9.3)%9,402 21,996 $(12,594)(57.3)%
Less: Operating expenses and real estate taxes244,227 253,568 (9,341)(3.7)%5,411 12,396 (6,985)(56.3)%
NOI (excluding termination income) 2, 3
$379,585 $434,286 $(54,701)(12.6)%$3,991 $9,600 $(5,609)(58.4)%
Rental revenue (excluding termination income) 2
$623,812 $687,854 $(64,042)(9.3)%$9,402 $21,996 $(12,594)(57.3)%
Less: Straight-line rent and fair value lease revenue12,037 41,924 (29,887)(71.3)%241 147 94 63.9 %
Add: Lease transaction costs that qualify as rent inducements 4
1,333 1,477 (144)(9.7)%— — — — %
Subtotal613,108 647,407 (34,299)(5.3)%9,161 21,849 (12,688)(58.1)%
Less: Operating expenses and real estate taxes244,227 253,568 (9,341)(3.7)%5,411 12,396 (6,985)(56.3)%
Add: Straight-line ground rent expense 5
799 843 (44)(5.2)%— — — — %
NOI - cash (excluding termination income) 2, 3
$369,680 $394,682 $(25,002)(6.3)%$3,750 $9,453 $(5,703)(60.3)%
Consolidated Total 1, 6 (A)
BXP’s share of Unconsolidated Joint Ventures 6 (B)
Three Months Ended$%Three Months Ended$%
31-Dec-2031-Dec-19ChangeChange31-Dec-2031-Dec-19ChangeChange
Rental Revenue 2
$633,765 $711,247 $27,364 $35,721 
Less: Termination income551 1,397 771 — 
Rental revenue (excluding termination income) 2
633,214 709,850 $(76,636)(10.8)%26,593 35,721 $(9,128)(25.6)%
Less: Operating expenses and real estate taxes249,638 265,964 (16,326)(6.1)%11,836 13,266 (1,430)(10.8)%
NOI (excluding termination income) 2, 3
$383,576 $443,886 $(60,310)(13.6)%$14,757 $22,455 $(7,698)(34.3)%
Rental revenue (excluding termination income) 2
$633,214 $709,850 $(76,636)(10.8)%$26,593 $35,721 $(9,128)(25.6)%
Less: Straight-line rent and fair value lease revenue12,278 42,071 (29,793)(70.8)%(1,806)5,361 (7,167)(133.7)%
Add: Lease transaction costs that qualify as rent inducements 4
1,333 1,477 (144)(9.7)%368 2,496 (2,128)(85.3)%
Subtotal$622,269 $669,256 (46,987)(7.0)%28,767 32,856 (4,089)(12.4)%
Less: Operating expenses and real estate taxes249,638 265,964 (16,326)(6.1)%11,836 13,266 (1,430)(10.8)%
Add: Straight-line ground rent expense 5
799 843 (44)(5.2)%— — — — %
NOI - cash (excluding termination income) 2, 3
$373,430 $404,135 $(30,705)(7.6)%$16,931 $19,590 $(2,659)(13.6)%
Partners’ share of Consolidated Joint Ventures 6 (C)
BXP’s Share 3, 6, 7, 8, 9
Three Months Ended$%Three Months Ended$%
31-Dec-2031-Dec-19ChangeChange31-Dec-2031-Dec-19ChangeChange
Rental Revenue 2
$70,452 $74,548 $590,677 $672,420 
Less: Termination income95 — 1,227 1,397 
Rental revenue (excluding termination income) 2
70,357 74,548 $(4,191)(5.6)%589,450 671,023 $(81,573)(12.2)%
Less: Operating expenses and real estate taxes29,737 29,661 76 0.3 %231,737 249,569 (17,832)(7.1)%
NOI (excluding termination income) 2, 3
$40,620 $44,887 $(4,267)(9.5)%$357,713 $421,454 $(63,741)(15.1)%
Rental revenue (excluding termination income) 2
$70,357 $74,548 $(4,191)(5.6)%$589,450 $671,023 $(81,573)(12.2)%
Less: Straight-line rent and fair value lease revenue5,555 4,131 1,424 34.5 %4,917 43,301 (38,384)(88.6)%
Add: Lease transaction costs that qualify as rent inducements 4
12 168 (156)(92.9)%1,689 3,805 (2,116)(55.6)%
Subtotal64,814 70,585 (5,771)(8.2)%586,222 631,527 (45,305)(7.2)%
Less: Operating expenses and real estate taxes29,737 29,661 76 0.3 %231,737 249,569 (17,832)(7.1)%
Add: Straight-line ground rent expense 5
— — — — %799 843 (44)(5.2)%
NOI - cash (excluding termination income) 2, 3
$35,077 $40,924 $(5,847)(14.3)%$355,284 $382,801 $(27,517)(7.2)%
___________________
1Includes 100% share of consolidated joint ventures that are a Same Property.
2See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
3For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income) and NOI - cash (excluding termination income), see pages 11-12.
4Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 10.
5Excludes the straight-line impact of approximately $144 and $173 for the three months ended December 31, 2020 and 2019, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 12.
13


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Q4 2020
Same property net operating income (NOI) by reportable segment (continued)


6For the three months ended December 31, 2020, includes write-offs associated with accounts receivable of approximately $294 for Consolidated Total, $2 for Partners’ share of Consolidated Joint Ventures, $0 for BXP’s share of Unconsolidated Joint Ventures and $292 for BXP’s Share, primarily related to COVID-19. For the three months ended December 31, 2020, includes write-offs associated with straight-line rent of approximately $26,168 for Consolidated Total, $46 for Partners’ share of Consolidated Joint Ventures, $5,415 for BXP’s share of Unconsolidated Joint Ventures and $31,537 for BXP’s Share, primarily related to COVID-19. For additional information, see page 60.
7BXP’s Share equals (A) + (B) - (C).
8BXP’s Share of Same Store NOI (excluding termination income) was $63,741 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $31,537 of write-offs associated with accrued rent (all of which was included within straight-line rent), $292 of write-offs associated with accounts receivable, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI (excluding termination income) by $47,850. For additional information, see page 60.
9BXP’s Share of Same Store NOI-cash (excluding termination income) was $27,517 less, compared to Q4 2019. Included in Q4 2020 are BXP’s Share of $292 of write-offs associated with accounts receivable, $16,401 decrease in lease revenue related to COVID-19 cash rent abatements and deferrals, $11,832 decrease in parking and other revenue and a $4,189 decrease in NOI due to limited occupancy at our only hotel. These items decreased BXP’s Share of Same Store NOI-cash (excluding termination income) by $32,714. For additional information, see page 60.
14


 image141.jpg
Q4 2020
Capital expenditures, tenant improvement costs and leasing commissions

(dollars in thousands, except PSF amounts)


CAPITAL EXPENDITURES
Three Months Ended
31-Dec-2030-Sep-20
Maintenance capital expenditures$27,253 $22,003 
Planned capital expenditures associated with acquisition properties — — 
Repositioning capital expenditures86 (121)
Hotel improvements, equipment upgrades and replacements33 69 
Subtotal27,372 21,951 
Add:
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (JVs)36 178 
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated JVs1,411 1,793 
BXP’s share of repositioning capital expenditures from unconsolidated JVs322 (203)
Less:
Partners’ share of maintenance capital expenditures from consolidated JVs559 459 
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated JVs— — 
Partners’ share of repositioning capital expenditures from consolidated JVs(26)(77)
BXP’s Share of Capital Expenditures 1
$28,608 $23,337 





2nd GENERATION TENANT IMPROVEMENTS AND LEASING COMMISSIONS 2
Three Months Ended
31-Dec-2030-Sep-20
Square feet935,144 1,188,471 
Tenant improvements and lease commissions PSF$68.87 $66.57 





















___________________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
2Includes 100% of unconsolidated joint ventures.

15


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Q4 2020
Acquisitions and dispositions

For the period from January 1, 2020 through December 31, 2020
(dollars in thousands)

ACQUISITIONS
Investment
PropertyLocationDate AcquiredSquare FeetInitialAnticipated FutureTotalIn-service Leased (%)
681, 685 and 701 Gateway (50% nominal ownership interest) 1
South San Francisco, CAJanuary 28, 2020312,828 $280,751 $— $280,751 100.0 %
Platform 16 (55% ownership interest) 2
San Jose, CAFebruary 20, 2020N/A74,113 — 74,113 N/A
Fourth + Harrison
San Francisco, CAJune 26, 2020N/A140,147 — 140,147 N/A
Beach Cities Media Center (50% ownership interest)
El Segundo, CAJuly 23, 2020N/A21,226 — 21,226 N/A
759 Harrison Street San Francisco, CAJuly 31, 2020 and December 15, 2020N/A4,500 — 4,500 N/A
Total Acquisitions312,828 $520,737 $— $520,737 100.0 %

DISPOSITIONS
PropertyLocationDate DisposedSquare FeetGross Sales PriceNet Cash Proceeds
Book Gain 5
601, 611 and 651 Gateway (50% ownership interest) 1
South San Francisco, CAJanuary 28, 2020768,236 $350,000 $— $217,744 
New Dominion Technology Park
Herndon, VAFebruary 20, 2020492,601 256,000 254,015 192,341 
Annapolis Junction Building Eight and two land parcels (50% ownership interest) 3
Annapolis, MDJune 25, 2020125,685 47,000 22,895 5,829 
Capital Gallery 4
Washington, DCJune 25, 2020455,000 253,675 246,582 203,524 
Crane Meadow (land parcel)Marlborough, MADecember 16, 2020N/A14,250 14,177 5,248 
    Total Dispositions1,841,522 $920,925 $537,669 $624,686 



________________
1On January 28, 2020, the Company entered into a joint venture with a third party to own, operate and develop properties at its Gateway Commons complex located in South San Francisco, California. The Company contributed its 601, 611 and 651 Gateway properties and development rights with an agreed upon value aggregating approximately $350.0 million for its 50% interest in the joint venture. The partner contributed three properties and development rights with an agreed upon value aggregating approximately $280.8 million at closing and will contribute cash totaling approximately $69.2 million in the future for its 50% ownership interest in the joint venture. As a result of the partner’s deferred contribution, the Company has an initial approximately 55% interest in the joint venture. The Company recognized a gain on the retained and sold interest in the real estate contributed to the joint venture totaling approximately $217.7 million during the three months ended March 31, 2020, as the fair value of the real estate exceeded its carrying value.
2On February 20, 2020, a joint venture in which the Company has a 55% interest acquired the land underlying the ground lease at its Platform 16 project located in San Jose, California for a purchase price totaling approximately $134.8 million. The joint venture had previously made a deposit totaling $15.0 million, which deposit was credited against the purchase price. Platform 16 consists of a parcel of land totaling approximately 5.6 acres that is expected to support the development of approximately 1.1 million square feet of commercial office space.
3Net cash proceeds totaled approximately $45.8 million, of which the Company’s share was approximately $22.9 million. The joint venture distributed approximately $36.8 million, of which the Company’s share totaled approximately $18.4 million, of available cash and the net proceeds from the sale after the pay down of the mortgage loan. The Company’s share of the gain on sale of real estate totaling approximately $5.8 million is included in Income from Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations.
4On June 25, 2020, the Company sold a portion of its Capital Gallery property located in Washington, DC for a gross sale price of approximately $253.7 million. The portion sold was comprised of approximately 455,000 net rentable square feet of commercial office space. The Company continues to own the land, underground parking garage and remaining commercial office and retail space containing approximately 176,000 net rentable square feet at the property.
5Excludes approximately $0.2 million of gains on sales of real estate recognized during the year ended December 31, 2020 related to gain amounts from sales of real estate occurring in the prior year.

16


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Q4 2020
Construction in progress

as of December 31, 2020
(dollars in thousands)

CONSTRUCTION IN PROGRESS 1
Actual/EstimatedBXP’s share
Initial OccupancyStabilization DateSquare Feet
Investment to Date 2
Estimated Total Investment 2
Total Financing
Amount Drawn at 12/31/2020
Estimated Future Equity Requirement 2
Percentage Leased 3
Percentage placed in-service 4
Net Operating Income (Loss) 5 (BXP’s share)
Construction PropertiesLocation
Office and Retail
325 Main Street
Q3 2022Q3 2022Cambridge, MA420,000 $181,917 $418,400 $— $236,483 90 %— %N/A
100 Causeway Street (50% ownership)
Q2 2021Q3 2022Boston, MA632,000 189,528 267,300 200,000 108,287 — 94 %— %N/A
7750 Wisconsin Avenue (Marriott International Headquarters) (50% ownership)
Q3 2022Q3 2022Bethesda, MD734,000 148,452 198,900 127,500 81,932 4,880 100 %— %N/A
Reston Next (formerly Reston Gateway)
Q4 2022Q4 2023Reston, VA1,062,000 372,788 715,300 — — 342,512 85 %— %N/A
2100 Pennsylvania Avenue
Q3 2022Q3 2024Washington, DC480,000 134,071 356,100 — — 222,029 62 %— %N/A
Total Office Properties under Construction3,328,0001,026,756 1,956,000 327,500 190,219 805,904 87 %— %— 
Redevelopment Properties
One Five Nine East 53rd (55% ownership)
Q2 2021Q2 2021New York, NY220,000 137,964 150,000 — — 12,036 96 %— %N/A
200 West Street 6
Q4 2021Q4 2021Waltham, MA138,000 17,028 47,800 — — 30,772 100 %— %N/A
Total Redevelopment Properties under Construction358,000 154,992 197,800 — — 42,808 98 %— %N/A
Total Properties Under Construction and Redevelopment 3,686,000 $1,181,748 $2,153,800 $327,500 $190,219 $848,712 88 %

— %— 


PROJECTS FULLY PLACED IN-SERVICE DURING 2020
Actual/EstimatedBXP’s share
Estimated Total Investment 2
Amount Drawn at 12/31/2020
Estimated Future Equity Requirement 2
Net Operating Income (Loss) 5 (BXP’s share)
Initial OccupancyStabilization DateSquare feet
Investment to Date 2
Total Financing
Percentage Leased 3
Location
17Fifty Presidents Street
Q1 2020Q1 2020Reston, VA275,809 $132,273 $132,320 $— $— $47 100 %$3,143 
20 CityPoint
Q3 2019Q3 2021Waltham, MA211,476 77,238 99,090 — — 21,852 100 %1,031 
Hub50House (440 units) (50% ownership)
Q4 2019Q1 2022Boston, MA320,444 147,641 153,520 90,000 85,624 1,503 61 %449 
The Skylyne (402 units) 7
Q3 2020Q3 2022Oakland, CA318,171 248,460 263,600 — — 15,140 18 %(1,390)
Skylyne Retail 12,825 N/AN/A— — — — %— 
Dock 72 (50% ownership)
Q4 2019Q4 2023Brooklyn, NY668,625 215,830 260,000 125,000 98,206 17,376 33 %(7,438)
Total Projects Fully Placed In-Service1,807,350 $821,442 $908,530 $215,000 $183,830 $55,918 61 %
8
$(4,205)
_____________
1A project is classified as Construction in Progress when (1) construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and (2) capitalized interest has commenced.
2Includes income (loss) and interest carry on debt and equity investment.
3Represents percentage leased as of January 22, 2021, including leases with future commencement dates.
4Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.
5Amounts represent Net Operating Income (Loss) for the three months ended December 31, 2020. See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
6Represents a portion of the property under redevelopment for conversion to laboratory space.
7This property is subject to a 99-year ground lease (including extension options) with an option to purchase in the future.
8Excludes residential units.
17


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Q4 2020
Land parcels and purchase options

as of December 31, 2020


OWNED LAND PARCELS
Location
Approximate Developable Square Feet 1
Reston, VA 2
2,938,000 
San Jose, CA 3
2,199,000 
New York, NY (25% ownership)2,000,000 
Princeton, NJ1,650,000 
San Jose, CA (55% ownership) 1,078,000 
San Francisco, CA850,000 
South San Francisco, CA (50% ownership)640,000 
Waltham, MA605,000 
Washington, DC (50% ownership)520,000 
Springfield, VA 422,000 
Santa Clara, CA 3
414,000 
Dulles, VA310,000 
El Segundo, CA (50% ownership) 275,000 
         Total
13,901,000 


VALUE CREATION PIPELINE - LAND PURCHASE OPTIONS
Location
Approximate Developable Square Feet 1
Boston, MA 1,300,000 
Waltham, MA 4
1,200,000 
Cambridge, MA330,000 
         Total2,830,000 


























__________________
1Represents 100%.
2During the fourth quarter, a ground lease commenced with a hotel developer for approximately 200,000 square feet. Construction is contingent on their ability to obtain construction financing.
3Excludes the existing square footage at in-service properties being held for future re-development as listed and noted on page 25.
4The Company expects to be a 50% partner in the future development of these sites.




18


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Q4 2020
Leasing activity

for the three months ended December 31, 2020

ALL IN-SERVICE PROPERTIES
Net (increase)/decrease in available space (SF)Total
Vacant space available at the beginning of the period3,992,407 
Add:
Properties placed (and partially placed) in-service 1
447,018 
Leases expiring or terminated during the period1,013,104 
Total space available for lease5,452,529 
1st generation leases— 
2nd generation leases with new tenants363,930 
2nd generation lease renewals571,214 
Total space leased935,144 
Vacant space available for lease at the end of the period4,517,385 
Net (increase)/decrease in available space(524,978)
Second generation leasing information: 2
Leases commencing during the period (SF)935,144 
Weighted average lease term (months)82 
Weighted average free rent period (days)160 
Total transaction costs per square foot 3
$68.87 
Increase (decrease) in gross rents 4
6.89 %
Increase (decrease) in net rents 5
10.87 %



All leases (SF)
Incr (decr) in 2nd generation cash rents 6
Total square feet of leases executed in the quarter 7, 8
1st generation2nd generation
total 6
gross 4
net 5
Boston— 171,165 171,165 34.57 %53.96 %450,838 
Los Angeles— 221,089 221,089 2.86 %4.01 %— 
New York— 264,326 264,326 6.42 %12.27 %92,889 
San Francisco— 49,882 49,882 16.23 %21.69 %67,333 
Washington, DC— 228,682 228,682 (6.10)%(8.92)%547,376 
Total / Weighted Average— 935,144 935,144 6.89 %10.87 %1,158,436 



_____________
1Total square feet of properties placed (and partially placed) in-service in Q4 2020 consists of 447,018 square feet of office at Dock 72.
2Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 935,144 square feet of second generation leases that commenced in Q4 2020, leases for 857,379 square feet were signed in prior periods.
3Total transaction costs include tenant improvements and leasing commissions, but exclude free rent concessions.
4Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 869,418 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).
5Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 869,418 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).
6Represents leases for which rental revenue recognition commenced in accordance with GAAP during the quarter.
7Amounts shown in this column exclude COVID-19 related lease modifications covering an aggregate of approximately 921,000 square feet that were executed in the fourth quarter of 2020 to provide cash rent deferral and/or abatement in the aggregate amount of approximately $11.5 million in the fourth quarter representing BXP’s Share. Of these lease modifications, the lease terms associated with 163,937 square feet were extended for a period of 12 or more months. In addition, COVID-19 related lease modifications from the second and third quarters of 2020 provide cash rent and/or abatement in the aggregate amount of approximately $7.7 million in the fourth quarter representing BXP’s Share. For additional information, see page 60.
8Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 77,765.
19


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Q4 2020
Portfolio overview

for the three months ended December 31, 2020
(dollars in thousands)


Rentable square footage of in-service properties by location and unit type 1, 2
OfficeRetailResidentialHotelTotal
Boston13,787,158 1,106,146 550,114 330,000 15,773,418 
Los Angeles2,180,794 124,932 — — 2,305,726 
New York11,150,990 386,788 — — 11,537,778 
San Francisco7,498,326 334,801 318,171 — 8,151,298 
Washington, DC8,297,967 664,327 822,436 — 9,784,730 
Total42,915,235 2,616,994 1,690,721 330,000 47,552,950 
% of Total90.25 %5.50 %3.56 %0.69 %100.00 %


Rental revenue of in-service properties by unit type 1
Office 3
Retail 4
Residential
Hotel 5
Total
Consolidated$599,898 $46,769 $8,681 $376 $655,724 
Less:
Partners’ share from consolidated joint ventures 6
62,606 7,933 — — 70,539 
Add:
BXP’s share from unconsolidated joint ventures 7
28,424 1,715 1,118 — 31,257 
BXP’s Share of Rental revenue 1
$565,716 $40,551 $9,799 $376 $616,442 
% of Total91.77 %6.58 %1.59 %0.06 %100.00 %


Percentage of BXP’s Share of net operating income (NOI) (excluding termination income) by location 1, 8
CBDSuburbanTotal
Boston26.53 %8.32 %34.85 %
Los Angeles3.85 %— %3.85 %
New York24.49 %2.44 %26.93 %
San Francisco17.38 %3.54 %20.92 %
Washington, DC4.15 %9.30 %13.45 %
Total76.40 %23.60 %100.00 %










_____________
1See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
2Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 23-26.
3Includes the impact of write-offs associated with accounts receivable of approximately $205, $0, $0 and $205 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $25,501, $0, $13,010 and $38,511 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.
4Includes the impact of write-offs associated with accounts receivable of approximately $89, $2, $41 and $128 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively. Includes the impact of write-offs associated with accrued rent of approximately $667, $46, $609 and $1,230 for Consolidated, Partners’ share from consolidated joint ventures, BXP’s share of unconsolidated joint ventures and BXP’s Share of Rental Revenue, respectively.
5Excludes approximately $88 of revenue from retail tenants that is included in Retail.
6See page 63 for additional information.
7See page 65 for additional information.
8BXP’s Share of NOI (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of NOI (excluding termination income), see page 11.

20


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Q4 2020
Residential and hotel performance

(dollars in thousands, except rental rates)

RESULTS OF OPERATIONS
Residential 1
Hotel 2
Three Months EndedThree Months Ended
31-Dec-2030-Sep-2031-Dec-2030-Sep-20
Rental Revenue 3
$9,069 $9,718 $464 $90 
Less: Operating expenses and real estate taxes5,754 4,955 1,178 3,164 
Net Operating Income (Loss) (NOI) 3
3,315 4,763 (714)(3,074)
Add: BXP’s share of NOI from unconsolidated joint ventures449 233 N/AN/A
BXP’s Share of NOI 3
$3,764 $4,996 $(714)$(3,074)
Rental Revenue 3
$9,069 $9,718 $464 $90 
Less: Straight line rent and fair value lease revenue248 159 (6)(6)
Subtotal8,821 9,559 470 96 
Less: Operating expenses and real estate taxes5,754 4,955 1,178 3,164 
NOI - cash basis 3
3,067 4,604 (708)(3,068)
Add: BXP’s share of NOI-cash from unconsolidated joint ventures449 233 N/AN/A
BXP’s Share of NOI - cash basis 3
$3,516 $4,837 $(708)$(3,068)


RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
31-Dec-2031-Dec-19
BOSTON
Hub50House (50% ownership), Boston, MA 3, 4
440
Average Monthly Rental Rate $3,499 $3,101 12.83 %
Average Rental Rate Per Occupied Square Foot $5.09 $5.21 (2.30)%
Average Physical Occupancy 51.89 %17.35 %199.08 %
Average Economic Occupancy 45.58 %12.95 %251.97 %
Proto Kendall Square, Cambridge, MA 3, 5
280
Average Monthly Rental Rate $2,645 $3,013 (12.21)%
Average Rental Rate Per Occupied Square Foot $4.88 $5.54 (11.91)%
Average Physical Occupancy 89.88 %97.50 %(7.82)%
Average Economic Occupancy 87.80 %97.50 %(9.95)%
The Lofts at Atlantic Wharf, Boston, MA 3, 5
86
Average Monthly Rental Rate $3,803 $4,516 (15.79)%
Average Rental Rate Per Occupied Square Foot $4.26 $5.02 (15.14)%
Average Physical Occupancy 86.43 %95.35 %(9.36)%
Average Economic Occupancy 85.06 %95.12 %(10.58)%
Boston Marriott Cambridge (437 rooms), Cambridge, MA 2, 5
N/A
Average Occupancy6.30 %

75.20 %(91.62)%
Average Daily Rate$138.88 

$284.40 (51.17)%
Revenue Per Available Room$9.11 

$290.09 (96.86)%
SAN FRANCISCO
The Skylyne, Oakland, CA 3, 6
402
Average Monthly Rental Rate$2,873 N/AN/A
Average Rental Rate Per Occupied Square Foot$3.41 N/AN/A
Average Physical Occupancy6.22 %N/AN/A
Average Economic Occupancy3.23 %N/AN/A

21


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Q4 2020
Residential and hotel performance (continued)



RENTAL RATES AND OCCUPANCY - Year-over-Year
Residential UnitsThree Months EndedPercent Change
31-Dec-2031-Dec-19
WASHINGTON, DC
Signature at Reston, Reston, VA 3, 5
508
Average Monthly Rental Rate $2,335 $2,372 (1.56)%
Average Rental Rate Per Occupied Square Foot $2.42 $2.56 (5.47)%
Average Physical Occupancy 80.58 %77.30 %4.24 %
Average Economic Occupancy 77.09 %71.52 %7.79 %
The Avant at Reston Town Center, Reston, VA 3, 5
359
Average Monthly Rental Rate $2,203 $2,465 (10.63)%
Average Rental Rate Per Occupied Square Foot $2.42 $2.70 (10.37)%
Average Physical Occupancy 90.53 %90.71 %(0.20)%
Average Economic Occupancy 88.71 %91.19 %(2.72)%
Total In-Service Residential Units2,075 
































_____________
1Includes retail space.
2As a result of COVID-19, the Boston Marriott Cambridge closed in March 2020 and did not re-open until October 2, 2020.
3See the Definitions and Reconciliations sections of this Supplemental package starting on page 56.
4This property was completed and fully placed in-service on July 24, 2020 and is in its initial lease-up period with expected stabilization in the first quarter of 2022.
5Excludes retail space.
6This property was completed and fully placed in-service on August 15, 2020 and is in its initial lease-up period with expected stabilization in the third quarter of 2022.


22


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Q4 2020
In-service property listing

as of December 31, 2020
Sub MarketNumber of Buildings Square Feet
Leased % 1
Annualized Rental Obligations Per Leased SF 2
BOSTON
Office
200 Clarendon StreetCBD Boston MA11,768,163 98.0 %$70.81 
100 Federal Street (55% ownership)CBD Boston MA11,238,461 98.2 %64.61
800 Boylston Street - The Prudential CenterCBD Boston MA