Reports Diluted FFO Per Share Of $0.95
BOSTON, Jan. 22 /PRNewswire-FirstCall/ -- Boston Properties, Inc.
(NYSE: BXP) today reported results for the fourth quarter ended December 31,
2001.
Funds from operations (FFO) for the quarter ended December 31, 2001 were
$90.7 million, or $1.00 per share basic and $0.95 per share diluted before an
accounting charge related to the application of SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" and net of early surrender
lease income recognized and payments received.
FFO for the fourth quarter of 2001 compares to FFO of $71.9 million, or
$0.89 per share basic and $0.85 per share diluted for the quarter ended
December 31, 2000. This represents an 11.8% quarter to quarter increase in
diluted FFO per share. The weighted average number of basic and diluted
shares outstanding totaled 90,736,578 and 105,577,393, respectively, for the
quarter ended December 31, 2001 and 80,885,230 and 96,008,217, respectively,
for the same quarter last year.
FFO, as adjusted above, for the year ended December 31, 2001 were
$337.8 million, or $3.75 per share basic and $3.57 per share diluted. FFO for
the year ended 2001 compares to FFO of $247.4 million, or $3.46 per share
basic and $3.31 per share diluted for the year ended December 31, 2000. This
represents an 7.9% year to year increase in diluted FFO per share. The
weighted average number of basic and diluted shares outstanding totaled
90,001,534 and 105,185,427, respectively, for the year ended December 31, 2001
and 71,424,207 and 85,723,101, respectively, for last year.
Net income before the charge related to SFAS No. 133, gain on the sale of
real estate, extraordinary item and cumulative effect of a change in
accounting principle totaled $54.4 million or $0.59 per share diluted in the
fourth quarter of 2001 as compared to $43.5 million or $0.52 per share diluted
for the same period in 2000. This represents a 13.5% per share increase in
diluted net income quarter over quarter.
Net income, as adjusted per the preceding paragraph, totaled $220.6
million or $2.40 per share diluted for the year ended 2001 as compared to
$147.0 million or $2.02 per share diluted for the same period in 2000. This
represents a 18.8% per share increase in diluted net income year over year.
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, 2001. In the opinion of management, all adjustments
considered necessary for a fair presentation of these reported results have
been made.
As of December 31, 2001, the Company's portfolio consisted of 147
properties comprising more than 40.7 million square feet, including 12
properties under development totaling 4.9 million square feet. The overall
occupancy rate for the properties in service as of December 31, 2001 was
95.3%.
Additional highlights of the fourth quarter include:
-- The refinancing of the mortgage loan collateralized by 10 & 20
Burlington Mall Road and 91 Hartwell Avenue on October 1, 2001. The
new financing totaling $40.0 million bears interest at a fixed rate of
7.25% and matures in October 2011.
-- The completion of Building Two in the Quorum Office Park development
project, an approximately 130,000 square foot office building in
Chelmsford, Massachusetts. This project is 100% leased.
-- The repurchase of 78,900 shares of the Company's Common Stock at a cost
of $2.7 million, with an average price per share of $34.46.
-- The acquisition of a 74-acre parcel of land in Weston, Massachusetts in
December 2001 for approximately $18 million, which includes a deposit
made in 2000 of approximately $9 million. This site will support an
approximately 350,000 square foot Class A office building.
-- The acquisition of an approximately 22-acre parcel of land in Reston
Virginia in November 2001 for approximately $8.6 million. This site
will support an approximately 358,000 square foot Class A office
building.
-- The disposition of a parcel of land known as the Belvedere
Condominium/Retail Project located at the Prudential Center in Boston,
Massachusetts for net proceeds of approximately $11 million.
Boston Properties will conduct a conference call tomorrow, January 23,
2002 at 10:00 AM (Eastern Time) to discuss the results of this year's fourth
quarter. The number to call for this interactive teleconference is
(888) 413-4411. A replay of the conference call will be available through
January 30, 2002 by dialing (888) 266-2086 and entering the passcode 5744949.
Additionally, a copy of Boston Properties' fourth quarter 2001
"Supplemental Operating and Financial Data" will be available on the Investor
section of the company's website at http://www.bostonproperties.com . These
materials are also available by contacting Investor Relations at 617-236-3300
or by written request to:
Investor Relations
Boston Properties, Inc.
111 Huntington Avenue
Boston, MA 02199
Boston Properties is a fully integrated, self-administered and self-
managed real estate investment trust that develops, redevelops, acquires,
manages, operates and owns a diverse portfolio of Class A office, industrial
and hotel properties. The Company is one of the largest owners and developers
of Class A office properties in the United States, concentrated in four core
markets -- Boston, Midtown Manhattan, Washington, DC and San Francisco.
This press release contains forward-looking statements within the meaning
of the Federal securities laws. You should exercise caution in interpreting
and relying on forward-looking statements because they involve known and
unknown risks, uncertainties and other factors which are, in some cases,
beyond Boston Properties' control and could materially affect actual results,
performance or achievements. These factors include, without limitation, the
ability to enter into new leases or renew leases on favorable terms,
dependence on tenants' financial condition, the uncertainties of real estate
development and acquisition activity, the ability to effectively integrate
acquisitions, the costs and availability of financing, the effects of local
economic and market conditions, regulatory changes and other risks and
uncertainties detailed from time to time in the Company's filings with the
Securities and Exchange Commission.
Financial tables follow.
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
2001 2000
(in thousands, except for share amounts)
ASSETS
Real estate: $7,457,906 $6,112,779
Less: accumulated depreciation (719,854) (586,719)
Total real estate 6,738,052 5,526,060
Cash and cash equivalents 98,067 280,957
Escrows 23,000 85,561
Investments in securities 4,297 7,012
Tenant and other receivables 43,546 26,852
Accrued rental income 119,494 91,684
Deferred charges, net 107,573 77,319
Prepaid expenses and other assets 20,996 41,154
Investments in unconsolidated joint
ventures 98,485 89,871
Total assets $7,253,510 $6,226,470
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $4,314,942 $3,414,891
Accounts payable and accrued
expenses 81,108 57,338
Dividends and distributions
payable 79,561 71,274
Interest rate contracts 11,147 --
Accrued interest payable 9,080 5,599
Other liabilities 58,859 51,926
Total liabilities 4,554,697 3,601,028
Commitments and contingencies -- --
Minority interests 844,740 877,715
Series A Convertible Redeemable
Preferred Stock, liquidation
preference $50.00 per share,
2,000,000 shares issued
and outstanding 100,000 100,000
Stockholders' equity:
Excess stock, $.01 par value,
150,000,000 shares
authorized, none issued or
outstanding -- --
Common stock, $.01 par value,
250,000,000 shares
authorized, 90,780,591 and
86,630,089 issued and
outstanding in 2001 and 2000,
respectively 908 866
Additional paid-in capital 1,789,521 1,673,349
Dividends in excess of earnings (17,669) (13,895)
Treasury Common Stock, at cost (2,722) -
Unearned compensation (2,097) (848)
Accumulated other comprehensive
loss (13,868) (11,745)
Total stockholders' equity 1,754,073 1,647,727
Total liabilities and
stockholders' equity $7,253,510 $6,226,470
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
(unaudited and in (unaudited and in
thousands, thousands,
except for per share except for per share
amounts) amounts)
Revenue
Rental:
Base rent $221,664 $183,319 $847,726 $715,358
Recoveries from tenants 26,966 23,736 107,883 92,692
Parking and other 11,757 12,797 52,001 50,892
Total rental revenue 260,387 219,852 1,007,610 858,942
Development and management
services 3,878 3,405 13,190 11,837
Interest and other 1,829 5,270 12,178 8,574
Total revenue 266,094 228,527 1,032,978 879,353
Expenses
Operating 83,611 67,335 312,294 264,701
General and administrative 8,663 9,791 38,312 35,659
Interest 59,730 50,854 223,389 217,064
Depreciation and amortization 40,230 36,088 150,163 133,150
Loss on investments in
securities -- -- 6,500 --
Total expenses 192,234 164,068 730,658 650,574
Income before net derivative
losses, minority interests and
income from unconsolidated
joint ventures 73,860 64,459 302,320 228,779
Net derivative losses (2,080) -- (26,488) --
Minority interests in property
partnerships 456 (250) 1,085 (932)
Income from unconsolidated
joint ventures 1,345 402 4,186 1,758
Income before minority interest
in Operating Partnership 73,581 64,611 281,103 229,605
Minority interest in Operating
Partnership (19,237) (19,472) (75,393) (76,039)
Income before gain (loss) on
sales of real estate 54,344 45,139 205,710 153,566
Gain (loss) on sales of real
estate, net of minority
interest 2,584 73 9,089 (234)
Income before extraordinary
loss 56,928 45,212 214,799 153,332
Extraordinary loss, net of
minority interest -- (334) -- (334)
Income before cumulative effect
of a change in accounting
principle 56,928 44,878 214,799 152,998
Cumulative effect of a change
in accounting principle, net
of minority interest -- -- (6,767) --
Net income before preferred
dividend 56,928 44,878 208,032 152,998
Preferred dividend (1,648) (1,643) (6,592) (6,572)
Net income available to common
shareholders $55,280 $43,235 $201,440 $146,426
Basic earnings per share:
Income before gain on sales of
real estate, extraordinary
item and cumulative effect of
a change in accounting
principle $0.58 $0.53 $2.21 $2.05
Gain on sales of real estate,
net of minority interest 0.03 -- 0.10 --
Extraordinary loss, net of
minority interest -- -- -- --
Cumulative effect of a change
in accounting principle, net
of minority interest -- -- (0.07) --
Net income available to common
shareholders $0.61 $0.53 $2.24 $2.05
Weighted average number of
common shares outstanding 90,737 80,885 90,002 71,424
Diluted earnings per share:
Income before gain on sales of
real estate, extraordinary
item and cumulative effect of
a change in accounting
principle $0.57 $0.52 $2.16 $2.01
Gain on sales of real estate,
net of minority interest 0.03 -- 0.10 --
Extraordinary loss, net of
minority interest -- -- -- --
Cumulative effect of a change
in accounting principle, net
of minority interest -- -- (0.07) --
Net income available to common
shareholders $0.60 $0.52 $2.19 $2.01
Weighted average number of
common and common
equivalent shares outstanding 92,593 83,013 92,200 72,741
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended Year ended
December 31, December 31,
2001 2000 2001 2000
Income before net derivative
losses (SFAS No. 133),
minority interests and
income from unconsolidated
joint ventures $73,860 $64,459 $302,320 $228,779
Add:
Real estate depreciation
and amortization 41,034 36,830 153,550 134,386
Income from unconsolidated
joint ventures 1,345 402 4,186 1,758
Less:
Net derivative losses
(SFAS No. 133) (2,080) -- (26,488) --
Minority property
partnerships' share of
funds from operations (776) (287) (2,322) (1,061)
Preferred dividends and
distributions (8,448) (8,246) (33,312) (32,994)
Funds from operations $104,935 $93,158 $397,934 $330,868
Add (subtract):
Net derivative losses
(SFAS No. 133) 2,080 -- 26,488 --
Early surrender lease
adjustment 3,927 (A) -- (8,518)(B) --
Funds from operations before
net derivative losses
(SFAS No. 133) and after
early surrender lease
adjustment $110,942 $93,158 $415,904 $330,868
Funds from operations
available to common
shareholders before net
derivative losses
(SFAS No. 133) and
after early surrender
lease adjustment $90,704 $71,888 $337,823 $247,371
Weighted average shares
outstanding - basic 90,737 80,885 90,002 71,424
FFO per share basic before
net derivative losses
(SFAS No. 133)
and after early surrender
adjustment $1.00 $0.89 $3.75 $3.46
FFO per share basic after
net derivative losses
(SFAS No. 133)
and before early
surrender lease
adjustment $0.95 $0.89 $3.59 $3.46
Weighted average shares
outstanding - diluted 105,577 96,008 105,185 85,723
FFO per share diluted
before net derivative
losses (SFAS No. 133)
and after early surrender
lease adjustment $0.95 $0.85 $3.57 $3.31
FFO per share diluted after
net derivative losses
(SFAS No. 133)
and before early
surrender lease
adjustment $0.90 $0.85 $3.42 $3.31
(A) Represents cash received under contractual obligations.
(B) Income earned of $12.4 million during Q3 2001 net of cash received.
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
December 31, 2001 December 31, 2000
Greater Boston 92.3% 99.3%
Greater Washington, D.C. 97.8% 98.5%
Midtown Manhattan 99.8% 99.9%
Baltimore, MD 99.2% 99.8%
Richmond, VA 98.4% 100.0%
Princeton/East Brunswick, NJ 88.6% 98.7%
Greater San Francisco 93.5% 97.9%
Bucks County, PA 100.0% 100.0%
Total Portfolio 95.3% 98.9%
Occupancy by Type
December 31, 2001 December 31, 2000
Class A Office Portfolio 95.4% 99.0%
Office/Technical Portfolio 97.9% 98.0%
Industrial Portfolio 87.3% 95.9%
Total Portfolio 95.3% 98.9%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Douglas T. Linde, Chief Financial Officer of
Boston Properties, Inc., +1-617-236-3300, or General, Marilynn
Meek, +1-212-445-8431, Analysts, Claire Koeneman,
+1-617-520-7004, or Media, Judith Sylk-Siegel, +1-212-445-8431,
all of The Financial Relations Board
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