Attached files

file filename
8-K - FORM 8-K - BOSTON PROPERTIES INCd475594d8k.htm
EX-99.1 - SUPPLEMENTAL OPERATING & FINANCIAL DATA - BOSTON PROPERTIES INCd475594dex991.htm

Exhibit 99.2

 

LOGO

 

LOGO

800 Boylston Street

Boston, MA 02199

AT THE COMPANY

Michael Walsh

Senior Vice President, Finance

(617) 236-3410

Arista Joyner

Investor Relations Manager

(617) 236-3343

BOSTON PROPERTIES ANNOUNCES

FOURTH QUARTER 2012 RESULTS

Reports diluted FFO per share of $1.27 Reports diluted EPS of $0.43

BOSTON, MA, 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.

 

1


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.

 

2


   

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.

 

3


   

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

 

4


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 Amortization

     0.81 – 0.81         3.25 – 3.25   

Less:

     

Projected Company Share of Gains on Sales of Real Estate

     0.00 – 0.00         0.09 – 0.09   
  

 

 

    

 

 

 

Projected FFO per Share (diluted)

   $ 1.19 – $1.21       $ 5.06 – $5.18   
  

 

 

    

 

 

 

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

 

5


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.

 

6


BOSTON PROPERTIES, INC.

CONSOLIDATED BALANCE SHEETS

 

     December 31,
2012
    December 31,
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 of $1,960 and $1,766, respectively

     69,555        79,838   

Related party notes receivable

     282,491        280,442   

Interest receivable from related party notes receivable

     104,816        89,854   

Accrued rental income, net of allowance of $1,571 and $2,515, respectively

     598,199        522,675   

Deferred charges, net

     588,235        445,403   

Prepaid expenses and other assets

     90,610        75,458   

Investments in unconsolidated joint ventures

     659,916        669,722   
  

 

 

   

 

 

 

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 discount

     4,639,528        3,865,186   

Unsecured exchangeable senior notes, net of discount

     1,170,356        1,715,685   

Unsecured line of credit

     —          —     

Accounts payable and accrued expenses

     199,102        155,139   

Dividends and distributions payable

     110,488        91,901   

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 the Operating Partnership

     110,876        55,652   
  

 

 

   

 

 

 

Redeemable interest in property partnership

     97,558        —     
  

 

 

   

 

 

 

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

     5,222,059        4,936,457   

Dividends in excess of earnings

     (109,971     (53,080

Treasury common stock, at cost

     (2,722     (2,722

Accumulated other comprehensive loss

     (13,817     (16,138
  

 

 

   

 

 

 

Total stockholders’ equity attributable to Boston Properties, Inc.

     5,097,065        4,865,998   

Noncontrolling interests:

    

Common units of the Operating Partnership

     539,753        548,581   

Property partnerships

     (1,964     (1,063
  

 

 

   

 

 

 

Total equity

     5,634,854        5,413,516   
  

 

 

   

 

 

 

Total liabilities and equity

   $ 15,462,321      $ 14,782,966   
  

 

 

   

 

 

 


BOSTON PROPERTIES, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

     Three months ended
December 31,
    Year ended
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 tenants

     59,825        51,929        229,107        198,703   

Parking and other

     22,612        21,217        91,635        83,069   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total rental revenue

     465,371        430,170        1,804,275        1,683,366   

Hotel revenue

     11,691        11,632        37,915        34,529   

Development and management services

     8,343        8,726        34,077        33,425   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total revenue

     485,405        450,528        1,876,267        1,751,320   
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses

        

Operating

        

Rental

     169,133        152,994        657,363        590,224   

Hotel

     8,519        8,076        28,120        26,128   

General and administrative

     15,940        19,329        82,382        79,610   

Transaction costs

     401        80        3,653        1,987   

Depreciation and amortization

     120,550        108,511        453,068        436,612   
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses

     314,543        288,990        1,224,586        1,134,561   
  

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

     170,862        161,538        651,681        616,759   

Other income (expense)

        

Income from unconsolidated joint ventures

     6,949        57,712        49,078        85,896   

Interest and other income

     2,062        1,179        10,091        5,358   

Gains (losses) from investments in securities

     187        38        1,389        (443

Losses from early extinguishments of debt

     —          (1,494     (4,453     (1,494

Interest expense

     (103,452     (103,967     (413,564     (394,131
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     76,608        115,006        294,222        311,945   

Discontinued operations

        

Income from discontinued operations

     —          437        1,040        1,881   

Gain on sale of real estate from discontinued operations

     —          —          36,877        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

     76,608        115,443        332,139        313,826   

Net income attributable to noncontrolling interests

        

Noncontrolling interests in property partnerships

     (2,331     (440     (3,792     (1,558

Noncontrolling interest - redeemable preferred units of the Operating Partnership

     (1,057     (842     (3,497     (3,339

Noncontrolling interest - common units of the Operating Partnership

     (7,820     (12,470     (31,046     (36,035

Noncontrolling interest in discontinued operations - common units of the Operating Partnership

     —          (47     (4,154     (215
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income attributable to Boston Properties, Inc.

   $ 65,400      $ 101,644      $ 289,650      $ 272,679   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Income from continuing operations

   $ 0.43      $ 0.69      $ 1.71      $ 1.86   

Discontinued operations

     —          —          0.22        0.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

Net income

   $ 0.43      $ 0.69      $ 1.93      $ 1.87   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of common shares outstanding

     151,006        147,732        150,120        145,693   
  

 

 

   

 

 

   

 

 

   

 

 

 

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

        

Income from continuing operations

   $ 0.43      $ 0.69      $ 1.70      $ 1.85   

Discontinued operations

     —          —          0.22        0.01   
  

 

 

   

 

 

   

 

 

   

 

 

 

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
December 31,
    Year ended
December 31,
 
     2012     2011     2012     2011  
     (in thousands, except for per share amounts)  

Net income attributable to Boston Properties, Inc.

   $ 65,400      $ 101,644      $ 289,650      $ 272,679   

Add:

        

Noncontrolling interest in discontinued operations - common units of the Operating Partnership

     —          47        4,154        215   

Noncontrolling interest - common units of the Operating Partnership

     7,820        12,470        31,046        36,035   

Noncontrolling interest - redeemable preferred units of the Operating Partnership

     1,057        842        3,497        3,339   

Noncontrolling interests in property partnerships

     2,331        440        3,792        1,558   

Less:

        

Income from discontinued operations

     —          437        1,040        1,881   

Gain on sale of real estate from discontinued operations

     —          —          36,877        —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Income from continuing operations

     76,608        115,006        294,222        311,945   

Add:

        

Real estate depreciation and amortization (2)

     142,029        133,415        542,753        541,791   

Income from discontinued operations

     —          437        1,040        1,881   

Less:

        

Gain on sale of real estate included within income from unconsolidated joint ventures (3)

     —          46,166        248        46,166   

Noncontrolling interests in property partnership’s share of funds from operations

     2,795        904        5,684        3,412   

Noncontrolling interest - redeemable preferred units of the Operating Partnership

     1,057        842        3,497        3,339   
  

 

 

   

 

 

   

 

 

   

 

 

 

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 from operations

     22,323        21,648        87,167        91,709   
  

 

 

   

 

 

   

 

 

   

 

 

 

Funds from operations attributable to Boston Properties, Inc.

   $ 192,462      $ 179,298      $ 741,419      $ 710,991   
  

 

 

   

 

 

   

 

 

   

 

 

 

Boston Properties, Inc.’s percentage share of funds from operations - basic

     89.61     89.23     89.48     88.57
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding - basic

     151,006        147,732        150,120        145,693   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO per share basic

   $ 1.27      $ 1.21      $ 4.94      $ 4.88   
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average shares outstanding - diluted

     152,708        149,435        152,056        147,679   
  

 

 

   

 

 

   

 

 

   

 

 

 

FFO per share diluted

   $ 1.27      $ 1.21      $ 4.90      $ 4.84   
  

 

 

   

 

 

   

 

 

   

 

 

 


(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