Breaking News

Zillow Buys Trulia for $3.5 Billion in Stock
Tweet TWEET

Boston Properties Announces Fourth Quarter 2012 Results

  Boston Properties Announces Fourth Quarter 2012 Results

                    Reports diluted FFO per share of $1.27

                         Reports diluted EPS of $0.43

Business Wire

BOSTON -- January 29, 2013

Boston Properties, Inc. (NYSE: BXP), a real estate investment trust, reported
results today for the fourth quarter ended December 31, 2012.

Results for the quarter ended December 31, 2012

Funds from Operations (FFO) for the quarter ended December 31, 2012 were
$192.5 million, or $1.27 per share basic and $1.27 per share diluted. This
compares to FFO for the quarter ended December 31, 2011 of $179.3 million, or
$1.21 per share basic and $1.21 per share diluted. The weighted average number
of basic and diluted shares outstanding totaled 151,005,547 and 152,708,254,
respectively, for the quarter ended December 31, 2012 and 147,732,138 and
149,435,490, respectively, for the quarter ended December 31, 2011.

The Company’s reported FFO of $1.27 per share diluted exceeded the guidance
previously provided of $1.22-$1.24 per share. The Company’s reported FFO
included the following items, among others, that were not reflected in the
guidance: $0.02 per share of improvements in portfolio operations, $0.01 per
share of greater than expected interest and other income and development and
management services revenue, and $0.01 per share of less than expected general
and administrative expenses.

Net income available to common shareholders was $65.4 million for the quarter
ended December 31, 2012, compared to $101.6 million for the quarter ended
December 31, 2011. Net income available to common shareholders per share (EPS)
for the quarter ended December 31, 2012 was $0.43 basic and $0.43 on a diluted
basis. This compares to EPS for the fourth quarter of 2011 of $0.69 basic and
$0.69 on a diluted basis.

Results for the year ended December 31, 2012

FFO for the year ended December 31, 2012 was $741.4 million, or $4.94 per
share basic and $4.90 per share diluted. This compares to FFO for the year
ended December 31, 2011 of $711.0 million, or $4.88 per share basic and $4.84
per share diluted. The weighted average number of basic and diluted shares
outstanding totaled 150,119,947 and 152,055,620, respectively, for the year
ended December 31, 2012 and 145,693,488 and 147,679,439, respectively, for the
year ended December 31, 2011.

Net income available to common shareholders was $289.7 million for the year
ended December 31, 2012, compared to $272.7 million for the year ended
December 31, 2011. Net income available to common shareholders per share (EPS)
for the year ended December 31, 2012 was $1.93 basic and $1.92 on a diluted
basis. This compares to EPS for the year ended December 31, 2011 of $1.87
basic and $1.86 on a diluted basis.

The reported results are unaudited and there can be no assurance that the
results will not vary from the final information for the quarter and year
ended December 31, 2012. In the opinion of management, all adjustments
considered necessary for a fair presentation of these reported results have
been made.

As of December 31, 2012, the Company’s portfolio consisted of 157 properties,
comprised primarily of Class A office space, one hotel, three residential
properties and four retail properties, aggregating approximately 44.4 million
square feet, including nine properties under construction totaling 2.8 million
square feet. In addition, the Company has structured parking for vehicles
containing approximately 15.9 million square feet. The overall percentage of
leased space for the 145 properties in service (excluding the two in-service
residential properties and the hotel) as of December 31, 2012 was 91.4%.

Significant events during the fourth quarter included:

  *On October 1, 2012, a joint venture in which the Company has a 30%
    interest partially placed in-service 500 North Capitol Street, NW, a Class
    A office redevelopment project with approximately 232,000 net rentable
    square feet located in Washington, DC. The property is currently 82%
    leased.
  *On October 4, 2012, the Company completed the formation of a joint venture
    which owns and operates Fountain Square located in Reston, Virginia,
    adjacent to the Company’s other Reston properties. Fountain Square is an
    office and retail complex aggregating approximately 758,000 net rentable
    square feet, comprised of approximately 521,000 net rentable square feet
    of Class A office space and approximately 237,000 net rentable square feet
    of retail space. The joint venture partner contributed the property valued
    at approximately $385.0 million and related mortgage indebtedness totaling
    approximately $211.3 million for a 50% interest in the joint venture. The
    Company contributed cash totaling approximately $87.0 million for its 50%
    interest, which cash was distributed to the joint venture partner. The
    Company is consolidating this joint venture. The mortgage loan bears
    interest at a fixed rate of 5.71% per annum and matures on October 11,
    2016. Pursuant to the joint venture agreement (i) the Company has rights
    to acquire the partner’s 50% interest and (ii) the partner has the right
    to cause the Company to acquire the partner’s interest on January 4, 2016,
    in each case at a fixed price totaling approximately $102.0 million in
    cash. The fixed price option rights expire on January 31, 2016.
  *On October 19, 2012, the Company formed a joint venture with an affiliate
    of Hines to pursue the acquisition of land in San Francisco, California
    which could support a 61-story, 1.4 million square foot office tower known
    as Transbay Tower. The purchase price is approximately $190.0 million, and
    the acquisition is expected to close in the first quarter of 2013. The
    Company has a 50% interest in the joint venture. The Company has provided
    a non-refundable deposit for the land purchase in the form of a letter of
    credit totaling $5.0 million. There can be no assurance that the
    acquisition of the land will be consummated on the terms currently
    contemplated or at all.
  *On November 8, 2012, the Company declared a dividend of $0.65 per share of
    common stock for the period from October 1, 2012 to December 31, 2012,
    payable on January 29, 2013 to shareholders of record as of the close of
    business on December 31, 2012. This represents an increase of
    approximately 18% over the prior quarterly cash dividend of $0.55 per
    share.
  *On November 20, 2012, the Company’s partner in its Annapolis Junction
    joint venture contributed a parcel of land and improvements and the
    Company contributed cash of approximately $5.4 million. The Company has a
    50% interest in this joint venture. The venture has commenced construction
    of Annapolis Junction Building Seven, which when completed will consist of
    a Class A office property with approximately 125,000 net rentable square
    feet located in Annapolis, Maryland.
  *On December 14, 2012, the Company signed a 20-year lease with a law firm
    for approximately 246,000 net rentable square feet at 250 West 55th
    Street. 250 West 55th Street is an approximately 989,000 net rentable
    square foot office building under construction in midtown Manhattan. The
    Company expects that the law firm will move into the completed building in
    the second quarter of 2014. The property is currently approximately 46%
    leased.
  *On December 18, 2012, the Company terminated the construction loan
    facility collateralized by its 680 Folsom Street development project
    located in San Francisco, California totaling $170.0 million. The
    construction loan facility bore interest at a variable rate equal to LIBOR
    plus 3.70% per annum and was scheduled to mature on May 30, 2015 with two,
    one-year extension options, subject to certain conditions. The Company had
    not drawn any amounts under the facility.
  *On December 21, 2012, the Company signed a 20-year lease with a law firm
    for approximately 376,000 net rentable square feet at 601 Massachusetts
    Avenue, the Company’s planned approximately 478,000 net rentable square
    foot development project located in Washington, DC. Construction of the
    project is scheduled to commence in the second quarter of 2013, and the
    law firm expects to move into the completed building in the fourth quarter
    of 2015. The property is currently approximately 79% leased.
  *The servicer of the non-recourse mortgage loan in the amount of $25.0
    million collateralized by the Company’s Montvale Center property located
    in Gaithersburg, Maryland foreclosed on the property on January 31, 2012.
    As a result of the foreclosure, the Company recognized a gain on
    forgiveness of debt during the first quarter of 2012 totaling
    approximately $15.8 million, net of noncontrolling interests’ share of
    approximately $2.0 million. Due to a procedural error of the trustee, the
    foreclosure sale was subsequently dismissed by the applicable court prior
    to ratification. As a result, the Company has revised its financial
    statements to reflect the property and related mortgage debt on its
    consolidated balance sheet at December 31, 2012 and has reversed the gain
    on forgiveness of debt and recognized the operating activity from the
    property within its consolidated statement of operations for the year
    ended December 31, 2012. A subsequent foreclosure sale occurred on
    December 21, 2012, and ratification by the applicable court is pending.
    Once ratified, the Company will recognize a gain on forgiveness of debt.
    These events have no impact on the cash flows of the Company.

Transactions completed subsequent to December 31, 2012:

  *On January 7, 2013, the Company signed a 20-year lease with the General
    Services Administration for 100% of its approximately 182,000 net rentable
    square foot currently vacant Three Patriots Park property located in
    Reston, Virginia.
  *On January 28, 2013, the Company’s Compensation Committee approved a new
    equity-based, multi-year, long-term incentive program (the “2013 MYLTIP”)
    in lieu of a 2013 Outperformance Plan 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 2013
    MYLTIP will have an aggregate value of approximately $8.1 million, which
    amount will generally be amortized into earnings over the five-year plan
    period under the graded vesting method and has been reflected in the 2013
    guidance below.

EPS and FFO per Share Guidance:

The Company’s guidance for the first quarter and full year 2013 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.

                                                       
                                   First Quarter 2013      Full Year 2013
                                   Low     -  High       Low     -  High
Projected EPS (diluted)            $ 0.38  -  $ 0.40     $ 1.90  -  $ 2.02
                                                                        
Add:
Projected Company Share of Real
Estate Depreciation and              0.81   -     0.81       3.25   -     3.25
Amortization
Less:
Projected Company Share of Gains    0.00  -   0.00      0.09  -   0.09
on Sales of Real Estate
Projected FFO per Share            $ 1.19  -  $ 1.21     $ 5.06  -  $ 5.18
(diluted)
                                                                          

Boston Properties will host a conference call on Wednesday, January 30, 2013
at 10:00 AM Eastern Time, open to the general public, to discuss the fourth
quarter and full year 2012 results, the 2013 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
87254079. A replay of the conference call will be available through February
13, 2013, by dialing (855) 859-2056 (Domestic) or (404) 537-3406
(International) and entering the passcode 87254079. 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 2012 “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,
three residential properties and four retail properties. The Company is one of
the largest owners and developers of Class A office properties in the United
States, concentrated in five markets – Boston, New York, Princeton, 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 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 (including the impact of the European sovereign debt
issues), 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 2013, whether as a result of new
information, future events or otherwise.

                           Financial tables follow.


BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
                                                       
                                      December 31,           December 31,
                                         2012                2011        
                                                             
                                      (in thousands, except for share amounts)
                                      (unaudited)
ASSETS
                                                             
Real estate                           $   13,581,454         $  12,303,965
Construction in progress                  1,036,780             818,685
Land held for future development          275,094               266,822
    Less: accumulated depreciation       (2,934,160   )       (2,642,986  )
    Total real estate                     11,959,168            10,746,486
                                                             
Cash and cash equivalents                 1,041,978             1,823,208
Cash held in escrows                      55,181                40,332
Investments in securities                 12,172                9,548
Tenant and other receivables, net
of allowance for doubtful accounts        69,555                79,838
of $1,960 and $1,766, respectively
Related party notes receivable            282,491               280,442
Interest receivable from related          104,816               89,854
party notes receivable
Accrued rental income, net of
allowance of $1,571 and $2,515,           598,199               522,675
respectively
Deferred charges, net                     588,235               445,403
Prepaid expenses and other assets         90,610                75,458
Investments in unconsolidated joint      659,916             669,722     
ventures
        Total assets                  $   15,462,321        $  14,782,966  
                                                             
LIABILITIES AND EQUITY
                                                             
Liabilities:
    Mortgage notes payable            $   3,102,485          $  3,123,267
    Unsecured senior notes, net of        4,639,528             3,865,186
    discount
    Unsecured exchangeable senior         1,170,356             1,715,685
    notes, net of discount
    Unsecured line of credit              -                     -
    Accounts payable and accrued          199,102               155,139
    expenses
    Dividends and distributions           110,488               91,901
    payable
    Accrued interest payable              72,461                69,105
    Other liabilities                    324,613             293,515     
        Total liabilities                9,619,033           9,313,798   
                                                             
Commitments and contingencies            -                   -           
                                                             
Noncontrolling interest:
    Redeemable preferred units of        110,876             55,652      
    the Operating Partnership
                                                             
    Redeemable interest in property      97,558              -           
    partnership
                                                             
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, none issued or
    outstanding
    Common stock, $.01 par value,
    250,000,000 shares authorized,
    151,680,109 and 148,186,511
    shares
        issued and 151,601,209 and
        148,107,611 shares
        outstanding at December 31,
        2012 and December
        31, 2011, respectively            1,516                 1,481
    Additional paid-in capital            5,222,073             4,936,457
    Dividends in excess of earnings       (109,985     )        (53,080     )
    Treasury common stock, at cost        (2,722       )        (2,722      )
    Accumulated other comprehensive      (13,817      )       (16,138     )
    loss
        Total stockholders' equity
        attributable to Boston            5,097,065             4,865,998
        Properties, Inc.
                                                             
    Noncontrolling interests:
        Common units of the               539,753               548,581
        Operating Partnership
        Property partnerships             (1,964       )        (1,063      )
                                                            
        Total equity                     5,634,854           5,413,516   
                                                            
        Total liabilities and         $   15,462,321        $  14,782,966  
        equity
                                                                            


BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
                                                           
                      Three months ended            Year ended
                      December 31,                  December 31,
                       2012         2011         2012          2011      
                                                                    
                      (in thousands, except for per share amounts)
                                                                    
  Revenue
    Rental
        Base rent     $ 382,934      $ 357,024      $ 1,483,533     $ 1,401,594
        Recoveries
        from            59,825         51,929         229,107         198,703
        tenants
        Parking and    22,612       21,217       91,635        83,069    
        other
           Total
           rental       465,371        430,170        1,804,275       1,683,366
           revenue
    Hotel revenue       11,691         11,632         37,915          34,529
    Development and
    management         8,343        8,726        34,077        33,425    
    services
           Total       485,405      450,528      1,876,267     1,751,320 
           revenue
                                                                    
  Expenses
    Operating
        Rental          169,133        152,994        657,363         590,224
        Hotel           8,519          8,076          28,120          26,128
    General and         15,940         19,329         82,382          79,610
    administrative
    Transaction         401            80             3,653           1,987
    costs
    Depreciation
    and                120,550      108,511      453,068       436,612   
    amortization
           Total       314,543      288,990      1,224,586     1,134,561 
           expenses
                                                                    
  Operating income      170,862        161,538        651,681         616,759
  Other income
  (expense)
    Income from
    unconsolidated      6,949          57,712         49,078          85,896
    joint ventures
    Interest and        2,062          1,179          10,091          5,358
    other income
    Gains (losses)
    from                187            38             1,389           (443      )
    investments in
    securities
    Losses from
    early               -              (1,494   )     (4,453    )     (1,494    )
    extinguishments
    of debt
    Interest           (103,452 )    (103,967 )    (413,564  )    (394,131  )
    expense
  Income from
  continuing            76,608         115,006        294,222         311,945
  operations
  Discontinued
  operations
    Income from
    discontinued        -              437            1,040           1,881
    operations
    Gain on sale of
    real estate
    from               -            -            36,877        -         
    discontinued
    operations
  Net income            76,608         115,443        332,139         313,826
  Net income
  attributable to
  noncontrolling
  interests
    Noncontrolling
    interests in        (2,331   )     (440     )     (3,792    )     (1,558    )
    property
    partnerships
    Noncontrolling
    interest -
    redeemable
    preferred units
    of the
    Operating
        Partnership     (1,057   )     (842     )     (3,497    )     (3,339    )
    Noncontrolling
    interest -
    common units of     (7,820   )     (12,470  )     (31,046   )     (36,035   )
    the Operating
    Partnership
    Noncontrolling
    interest in
    discontinued
    operations -
    common units of
    the
        Operating      -            (47      )    (4,154    )    (215      )
        Partnership
  Net income
  attributable to     $ 65,400      $ 101,644     $ 289,650      $ 272,679   
  Boston
  Properties, Inc.
                                                                    
  Basic earnings
  per common share
  attributable to
  Boston
  Properties, Inc.:
    Income from
    continuing        $ 0.43         $ 0.69         $ 1.71          $ 1.86
    operations
    Discontinued       -            -            0.22          0.01      
    operations
    Net income        $ 0.43        $ 0.69        $ 1.93         $ 1.87      
                                                                    
    Weighted
    average number
    of common          151,006      147,732      150,120       145,693   
    shares
    outstanding
                                                                    
  Diluted earnings
  per common share
  attributable to
  Boston
  Properties, Inc.:
    Income from
    continuing        $ 0.43         $ 0.69         $ 1.70          $ 1.85
    operations
    Discontinued       -            -            0.22          0.01      
    operations
    Net income        $ 0.43        $ 0.69        $ 1.92         $ 1.86      
                                                                    
    Weighted
    average number
    of common and
    common
    equivalent
    shares
        outstanding    151,401      147,974      150,711       146,218   
                                                                    


BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS (1)
(Unaudited)
                                                            
                         Three months ended          Year ended
                         December 31,                December 31,
                          2012        2011        2012        2011    
                                                                   
                         (in thousands, except for per share amounts)
                                                                   
Net income
attributable to Boston   $ 65,400      $ 101,644     $ 289,650     $ 272,679
Properties, Inc.
                                                                   
Add:
   Noncontrolling
   interest in
   discontinued
   operations -
      common units of
      the Operating        -             47            4,154         215
      Partnership
   Noncontrolling
   interest - common
   units of the
   Operating
      Partnership          7,820         12,470        31,046        36,035
   Noncontrolling
   interest -
   redeemable
   preferred units of
      the Operating        1,057         842           3,497         3,339
      Partnership
   Noncontrolling
   interests in            2,331         440           3,792         1,558
   property
   partnerships
Less:
   Income from
   discontinued            -             437           1,040         1,881
   operations
   Gain on sale of
   real estate from       -           -           36,877      -       
   discontinued
   operations
                                                                   
Income from continuing     76,608        115,006       294,222       311,945
operations
                                                                   
Add:
   Real estate
   depreciation and        142,029       133,415       542,753       541,791
   amortization (2)
   Income from
   discontinued            -             437           1,040         1,881
   operations
Less:
   Gain on sale of
   real estate
   included within
   income from
      unconsolidated
      joint ventures       -             46,166        248           46,166
      (3)
   Noncontrolling
   interests in
   property
   partnership's share
      of funds from        2,795         904           5,684         3,412
      operations
   Noncontrolling
   interest -
   redeemable
   preferred units of
      the Operating       1,057       842         3,497       3,339   
      Partnership
                                                                   
Funds from operations
(FFO) attributable to
the Operating
   Partnership             214,785       200,946       828,586       802,700
                                                                   
Less:
   Noncontrolling
   interest - common
   units of the
   Operating
      Partnership's
      share of funds      22,323      21,648      87,167      91,709  
      from operations
                                                                   
Funds from operations
attributable to Boston   $ 192,462    $ 179,298    $ 741,419    $ 710,991 
Properties, Inc.
                                                                   
Boston Properties,
Inc.'s percentage
share of funds from
   operations - basic     89.61   %    89.23   %    89.48   %    88.57   %
                                                                   
Weighted average
shares outstanding -      151,006     147,732     150,120     145,693 
basic
                                                                   
   FFO per share basic   $ 1.27       $ 1.21       $ 4.94       $ 4.88    
                                                                   
Weighted average
shares outstanding -      152,708     149,435     152,056     147,679 
diluted
                                                                   
   FFO per share         $ 1.27       $ 1.21       $ 4.90       $ 4.84    
   diluted
                                                                             

(1) Pursuant to the revised definition of Funds from Operations adopted by the
Board of Governors of the National Association of Real Estate Investment
Trusts (“NAREIT”), we calculate Funds from Operations, or “FFO,” by adjusting
net income (loss) attributable to Boston Properties, Inc. (computed in
accordance with GAAP, including non-recurring items) for gains (or losses)
from sales of properties, impairment losses on depreciable real estate of
consolidated real estate, impairment losses on investments in unconsolidated
joint ventures driven by a measurable decrease in the fair value of
depreciable real estate held by the unconsolidated joint ventures, real estate
related depreciation and amortization, and after adjustment for unconsolidated
partnerships and joint ventures. FFO is a non-GAAP financial measure. The use
of FFO, combined with the required primary GAAP presentations, has been
fundamentally beneficial in improving the understanding of operating results
of REITs among the investing public and making comparisons of REIT operating
results more meaningful. Management generally considers FFO to be a useful
measure for reviewing our comparative operating and financial performance
because, by excluding gains and losses related to sales of previously
depreciated operating real estate assets, impairment losses and real estate
asset depreciation and amortization (which can vary among owners of identical
assets in similar condition based on historical cost accounting and useful
life estimates), FFO can help one compare the operating performance of a
company's real estate between periods or as compared to different companies.

Our computation of FFO may not be comparable to FFO reported by other REITs or
real estate companies that do not define the term in accordance with the
current NAREIT definition or that interpret the current NAREIT definition
differently.

FFO should not be considered as an alternative to net income attributable to
Boston Properties, Inc. (determined in accordance with GAAP) as an indication
of our performance. FFO does not represent cash generated from operating
activities determined in accordance with GAAP, and is not a measure of
liquidity or an indicator of our ability to make cash distributions. We
believe that to further understand our performance, FFO should be compared
with our reported net income attributable to Boston Properties, Inc. and
considered in addition to cash flows in accordance with GAAP, as presented in
our consolidated financial statements.

(2) Real estate depreciation and amortization consists of depreciation and
amortization from the Consolidated Statements of Operations of $120,550,
$108,511, $453,068 and $436,612, our share of unconsolidated joint venture
real estate depreciation and amortization of $21,778, $24,592, $90,076 and
$103,970, and depreciation and amortization from discontinued operations of
$0, $670, $976 and $2,572, less corporate-related depreciation and
amortization of $299, $358, $1,367 and $1,363 for the three months and year
ended December 31, 2012 and 2011, respectively.

(3) Consists of the portion of income from unconsolidated joint ventures
related to the gain on sale of real estate from (1) the sale of the Company's
Value-Added Fund's 300 Billerica Road property during the year ended December
31, 2012 and (2) the sale of Two Grand Central Tower during the three months
and year ended December 31, 2011.


BOSTON PROPERTIES, INC.
PORTFOLIO LEASING PERCENTAGES
                                             
                                                 
                                                 
                             % Leased by Location
                             December 31, 2012   December 31, 2011
Boston                       90.5%               87.1%
New York                     93.7%               97.8%
Princeton                    78.2%               75.8%
San Francisco                90.1%               87.9%
Washington, DC               94.3%               96.9%
       Total Portfolio       91.4%               91.3%
                                                 
                                                 
                                                 
                                                 
                             % Leased by Type
                             December 31, 2012   December 31, 2011
Class A Office Portfolio     91.4%               91.3%
Office/Technical Portfolio   90.6%               92.6%
       Total Portfolio       91.4%               91.3%

Contact:

Boston Properties, Inc.
Michael Walsh, 617-236-3410
Senior Vice President, Finance
or
Arista Joyner, 617-236-3343
Investor Relations Manager