On July 1, 2010, the Company used available cash to repay the mortgage loans collateralized by its 202, 206 & 214 Carnegie Center properties located in Princeton, New Jersey totaling approximately $55.8 million. The mortgage loans bore interest at a fixed rate of 8.13% per annum and were scheduled to mature on October 1, 2010. There was no prepayment penalty.

On July 1, 2010, the Company acquired the mortgage loan collateralized by a land parcel located in Reston, Virginia for approximately $20.3 million. In connection with the acquisition of the loan, the Company entered into a forbearance agreement pursuant to which it obtained the fee interest in the land by deed in lieu of foreclosure.

On July 23, 2010, an unconsolidated joint venture in which the Company has a 60% interest modified its mortgage loan collateralized by 125 West 55th Street located in New York City. The mortgage loan totaling $207.0 million bears interest at a fixed rate of 6.09% per annum and was scheduled to mature on March 10, 2015. The modification extended the maturity date of the loan to March 10, 2020. All other terms of the mortgage loan remain unchanged.

On August 1, 2010, the Company modified the mortgage loan collateralized by its Reservoir Place property located in Waltham, Massachusetts. The mortgage loan totaling $50.0 million bore interest at a variable rate equal to LIBOR plus 3.85% per annum and matures on July 30, 2014. The modification reduced the interest rate to a variable rate equal to Eurodollar plus 2.20% per annum. All other terms of the mortgage loan remain unchanged.

On August 3, 2010, the maturity date under the Company’s Operating Partnership’s $1.0 billion unsecured revolving credit facility was extended to August 3, 2011. All other terms of the unsecured revolving credit facility remain unchanged.

On September 12, 2010, an unconsolidated joint venture in which the Company has a 50% interest exercised its right to extend the maturity date of its mortgage loan collateralized by Annapolis Junction located in Annapolis, Maryland. The mortgage loan totaling $42.7 million now matures on September 12, 2011 and bears interest at a variable rate equal to LIBOR plus 1.00% per annum. The mortgage loan includes an additional one-year extension option, subject to certain conditions. All other terms of the mortgage loan remain unchanged.

On September 14, 2010, the Company executed an approximately 523,000 square foot, 20-year lease with the Defense Intelligence Agency for the Company’s 12300 & 12310 Sunrise Valley Drive properties located in Reston, Virginia, which are currently 100% leased. The Company will redevelop the properties and expects to complete 12310 Sunrise Valley Drive during the first quarter of 2012 and 12300 Sunrise Valley Drive during the second quarter of 2013.

On September 20, 2010, an unconsolidated joint venture in which the Company has a 50% interest refinanced its mortgage loan collateralized by Market Square North located in Washington, DC. The previous mortgage loan totaling approximately $81.1 million bore

interest at a fixed rate of 7.70% per annum and was scheduled to mature on December 19, 2010. The new mortgage loan totaling $130.0 million bears interest at a fixed rate of 4.85% per annum and matures on October 1, 2020. On October 22, 2010, the joint venture distributed to the partners excess loan proceeds totaling approximately $40.8 million, of which the Company’s share was approximately $20.4 million.

On September 24, 2010, the Company acquired fee title to 510 Madison Avenue in New York City for a purchase price of approximately $287.0 million. The Company also incurred approximately $1.5 million of closing costs that were expensed in the third quarter of 2010. Previously, on August 10, 2010, the Company had acquired the junior mezzanine loan that was secured by a pledge of a subordinate ownership interest in the property for a purchase price of approximately $22.5 million. 510 Madison Avenue is a newly-constructed, approximately 347,000 square foot Class A office tower located in the highly desirable Plaza District of midtown Manhattan. During October 2010, the Company partially placed the property in-service. The property is approximately 1% leased.

On September 27, 2010, the Company entered into an agreement to acquire Bay Colony Corporate Center in Waltham, Massachusetts for an aggregate purchase price of approximately $185.0 million. The purchase price consists of approximately $41.1 million of cash and the assumption of approximately $143.9 million of indebtedness. The debt being assumed is a securitized senior mortgage loan that bears interest at a fixed rate of 6.53% per annum and matures on June 11, 2012. The loan requires interest-only payments with a balloon payment due at maturity. The closing is scheduled to occur in the fourth quarter of 2010 and is subject to customary closing conditions and termination rights for transactions of this type. There can be no assurance that the acquisition will be completed on the terms or schedule currently contemplated, or at all. Bay Colony Corporate Center is an approximately 1,000,000 rentable square foot, four-building Class A office park situated on a 58-acre site in Waltham, Massachusetts. The Company projects this property’s 2011 Unleveraged FFO Return to be 4.2% and 2011 Unleveraged Cash Return to be 4.4%. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2011 Returns on Operating Property Acquisitions.” There can be no assurance that actual returns will not differ materially from these projections.

On October 4, 2010, the Company entered into an agreement to acquire the John Hancock Tower and Garage in Boston, Massachusetts for an aggregate purchase price of approximately $930.0 million. The purchase price consists of approximately $289.5 million of cash and the assumption of approximately $640.5 million of indebtedness. The debt being assumed is a securitized senior mortgage loan that bears interest at a fixed rate of 5.68% per annum and matures on January 6, 2017. The Company posted a cash deposit of $50.0 million on October 4, 2010 to secure its obligations under the agreement, which amount will be credited to the Company at closing. The Company expects to incur approximately $2.0 million of acquisition-related costs. The closing is expected to occur in the fourth quarter of 2010 and is subject to customary closing conditions and termination rights for transactions of this type, as well as certain post-closing indemnification and construction completion obligations of the seller that are secured by a guarantee issued by affiliates of the seller. There can be no assurance that the acquisition will be completed on

the terms or schedule currently contemplated, or at all. Under the agreement, the seller has agreed to (1) fund the cost of and complete certain capital projects and (2) fund the cost of certain tenant improvements, both of which are currently underway, totaling approximately $46 million. The John Hancock Tower is an iconic 62-story, approximately 1,700,000 rentable square foot office tower located in the heart of Boston’s Back Bay neighborhood. The garage is an eight-level, 2,013 space parking facility. The Company projects this property’s 2011 Unleveraged FFO Return to be 6.7% and 2011 Unleveraged Cash Return to be 4.3%. The calculation of these returns and related disclosures are presented on the accompanying table entitled “Projected 2011 Returns on Operating Property Acquisitions.” There can be no assurance that actual returns will not differ materially from these projections.

On October 20, 2010, the Company used available cash to repay the mortgage loan collateralized by its South of Market property located in Reston, Virginia totaling approximately $188.0 million. The mortgage loan bore interest at a variable rate equal to LIBOR plus 1.00% per annum and was scheduled to mature on November 21, 2010. There was no prepayment penalty.

On October 20, 2010, the Company used available cash to repay the mortgage loan collateralized by its Democracy Tower property located in Reston, Virginia totaling approximately $60.0 million. The mortgage loan bore interest at a variable rate equal to LIBOR plus 1.75% per annum and was scheduled to mature on December 19, 2010. There was no prepayment penalty.

On October 21, 2010, the Company’s Value-Added Fund conveyed the fee simple title to its One and Two Circle Star Way properties and paid $3.8 million to the lender in satisfaction of its outstanding obligations under the existing mortgage loan. The mortgage loan had an outstanding principal amount of $42.0 million, bore interest at a fixed rate of 6.57% per annum and was scheduled to mature on September 1, 2013. The Value-Added Fund had guaranteed the payment of (1) an aggregate of approximately $5.0 million of unfunded tenant improvement costs and leasing commissions and (2) one year of real estate taxes. The Company had an effective ownership interest of 25% in the One and Two Circle Star Way properties.

Projected EPS (diluted)

Add:

Projected Company Share of Real Estate Depreciation and Amortization

Less:

Projected Company Share of Gains on Sales of Real Estate

Projected FFO per Share (diluted)

Revenue

Rental:

Base rent

Recoveries from tenants

Parking and other

Total rental revenue

Hotel revenue

Development and management services

Interest and other

Total revenue

Expenses

Operating:

Rental

Hotel

General and administrative

Acquisition costs

Interest

Depreciation and amortization

Loss (gain) from suspension of development

Losses from early extinguishments of debt

Gains from investments in securities

Total expenses

Income before income from unconsolidated joint ventures, gains on sales of real estate and net income attributable to noncontrolling interests

Income from unconsolidated joint ventures

Gains on sales of real estate

Net income

Net income attributable to noncontrolling interests:

Noncontrolling interests in property partnerships

Noncontrolling interest - common units of the Operating Partnership

Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership

Noncontrolling interest - redeemable preferred units of the Operating Partnership

Net income attributable to Boston Properties, Inc.

Basic earnings per common share attributable to Boston Properties, Inc.:

Net income

Weighted average number of common shares outstanding

Diluted earnings per common share attributable to Boston Properties, Inc.:

Net income

Weighted average number of common and common equivalent shares outstanding

Real estate

Construction in progress

Land held for future development

Less: accumulated depreciation

Total real estate

Cash and cash equivalents

Cash held in escrows

Investments in securities

Tenant and other receivables, net of allowance for doubtful accounts of $1,831 and $4,125, respectively

Related party note receivable

Accrued rental income, net of allowance of $2,987 and $2,645, respectively

Deferred charges, net

Prepaid expenses and other assets

Investments in unconsolidated joint ventures

Total assets

Liabilities:

Mortgage notes payable

Unsecured senior notes, net of discount

Unsecured exchangeable senior notes, net of discount

Unsecured line of credit

Accounts payable and accrued expenses

Dividends and distributions payable

Accrued interest payable

Other liabilities

Total liabilities

Commitments and contingencies

Noncontrolling interest:

Redeemable preferred units of the Operating 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, 140,137,321 and 138,958,910 shares issued and 140,058,421 and 138,880,010 shares outstanding in 2010 and 2009, respectively

Additional paid-in capital

Earnings in excess of dividends

Treasury common stock, at cost

Accumulated other comprehensive loss

Total stockholders’ equity attributable to Boston Properties, Inc.

Noncontrolling interests:

Common units of the Operating Partnership

Property partnerships

Total equity

Total liabilities and equity

Net income attributable to Boston Properties, Inc.

Add:

Noncontrolling interest - redeemable preferred units of the Operating Partnership

Noncontrolling interest in gains on sales of real estate - common units of the Operating Partnership

Noncontrolling interest - common units of the Operating

Partnership

Noncontrolling interests in property partnerships

Less:

Gains on sales of real estate

Income from unconsolidated joint ventures

Income before income from unconsolidated joint ventures, gains on sales of real estate and net income attributable to noncontrolling interests

Add:

Real estate depreciation and amortization (2)

Income from unconsolidated joint ventures

Less:

Noncontrolling interests in property partnerships’ share of funds from operations

Noncontrolling interest - redeemable preferred units of the Operating Partnership

Funds from operations (FFO) attributable to the Operating Partnership

Less:

Noncontrolling interest - common units of the Operating

Partnership’s share of funds from operations

Funds from operations attributable to Boston Properties, Inc.

Our percentage share of funds from operations - basic

Weighted average shares outstanding - basic

FFO per share basic

Weighted average shares outstanding - diluted

FFO per share diluted

Base rent and recoveries from tenants

Straight-line rent

Fair value lease revenue

Parking and other

Total rental revenue

Operating Expenses

Revenue less Operating Expenses

Interest expense

Fair value interest expense

Depreciation and amortization

Net loss

Add:

Interest expense

Fair value interest expense

Depreciation and amortization

Unleveraged FFO (1)

Less:

Straight-line rent

Fair value lease revenue

Unleveraged Cash

Purchase Price

Estimated closing and other costs

Total Unleveraged Investment

Unleveraged FFO Return (1)

Unleveraged Cash Return (2)

Greater Boston

Greater Washington, DC

Midtown Manhattan

Princeton/East Brunswick, NJ

Greater San Francisco

Total Portfolio

Class A Office Portfolio

Office/Technical Portfolio

Total Portfolio