Reports Diluted FFO per share of $0.85
BOSTON, Jan. 23 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and year ended December 31, 2000.
Funds from Operations (FFO) for the quarter ended December 31, 2000 were
$71.9 million, or $0.89 per share basic and $0.85 per share diluted, compared
to FFO of $51.6 million, or $0.76 per share basic and $0.74 per share diluted
for the quarter ended December 31, 1999. This represents a 14.9% year to year
increase in diluted FFO per share. The weighted average number of basic and
diluted shares outstanding totaled 80,885,230 and 96,008,217, respectively,
for the quarter ended December 31, 2000 and 67,906,320 and 81,248,871,
respectively, for the same quarter last year.
FFO for the year ended December 31, 2000 was $247.4 million, or $3.46 per
share basic and $3.31 per share diluted, compared to FFO of $196.1 million, or
$2.96 per share basic and $2.89 per share diluted for the year ended December
31, 1999. The weighted average number of basic and diluted shares outstanding
totaled 71,424,207 and 85,723,101, respectively, for the year ended December
31, 2000 and 66,235,417 and 79,473,337, respectively, for the same period last
year.
Revenues were $228.5 million and $879.4 million for the quarter and year
ended
December 31, 2000, respectively, compared to revenues of $205.1 million and
$786.6 million for the same periods in 1999. Net income available to common
shareholders for the quarter and year ended December 31, 2000 was $43.2
million and $146.4 million, respectively, compared to $34.4 million and $113.9
million for the same periods in 1999. Net income per share available to
common shareholders for the quarter and year ended December 31, 2000 was
$0.53 per share basic and $0.52 per share diluted and $2.05 per share basic
and $2.01 per share diluted, respectively, compared to $0.51 per share basic
and $0.50 per share diluted and $1.72 per share basic and $1.71 per share
diluted for the same periods last 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, 2000. In the opinion of management, all adjustments
considered necessary for a fair presentation of these reported results have
been made.
As of December 31, 2000, the Company's portfolio consisted of 144
properties comprising more than 37.6 million square feet, including 15
properties currently under construction totaling 4.5 million square feet. The
overall occupancy rate for the properties in service as of December 31, 2000
was 98.9%.
Additional highlights of the fourth quarter include:
-- The disposition of 1950 Stanford Court, a single story industrial
building totaling 53,250 square feet, and an adjacent parcel of land
totaling approximately 2 acres in Landover, MD, on October 13, 2000
for approximately $2.2 million.
-- The refinancing of the mortgage loan secured by 601 and 651 Gateway
which consisted of replacing the $75.0 million mortgage loan with a
$90.0 million loan. The new financing bears interest at a rate equal
to 8.40% and matures in October 2010.
-- The closing on October 6, 2000 of a joint venture with an affiliate of
Westbrook, in which Boston Properties has a 50% interest, which was
formed to develop One and Two Discovery Square, two Class A office
buildings in Reston, Virginia totaling 362,868 square feet.
-- The closing of bond financing on October 12, 2000 totaling
$57.61 million collateralized by the New Dominion Tech Park, Building
One development project in Herndon, Virginia. Such financing matures
in October 2020 and bears interest at a rate of 7.58%. The proceeds
of $57.61 million were used to fund an escrow and will be held until
the New Dominion Tech Park, Building One is completed, which is
estimated to be in First Quarter 2001. At that time, it is
anticipated that the current construction loan will be paid off and
the remaining proceeds will be available to Boston Properties.
-- The closing of a public offering on October 31, 2000 of 17,110,000
shares of Common Stock at a price per share of $39.0625 (including
2,110,000 shares issued as a result of the exercise of an
overallotment option by the underwriters on November 2, 2000)
resulting in net proceeds of approximately $634.1 million.
-- The acquisition of the leasehold interest and ground rent credits at
One Times Square, future site of Times Square Tower in midtown
Manhattan, for approximately $165.1 million on December 1, 2000. This
development will consist of a 47-floor, 1.2 million square foot office
tower. The office space has been 53% pre-leased to Arthur Andersen.
-- The closing of a construction loan secured by the 40 Shattuck Road
development in Andover Office Park, in the amount of $16.0 million at
a rate of LIBOR + 1.75% and maturing in December 2003.
-- The closing of a construction loan secured by the Discovery Square
development in the amount of $75.0 million at a rate of LIBOR + 1.70%
and maturing in December 2003. Discovery Square is a joint venture
with an affiliate of Westbrook, in which Boston Properties has a 50%
interest. This development is 43% pre-leased.
-- The closing of a joint venture with The New York State Common
Retirement Fund, in which Boston Properties has a 25% interest, to
develop 901 New York Avenue, a Class A office building in Washington
D.C. totaling 550,000 square feet on December 8, 2000.
-- The closing of a joint venture with an affiliate of Westbrook, in
which Boston Properties has a 50% interest, which was formed to
develop Two Freedom Square, a Class A office building in Reston,
Virginia totaling 417,113 square feet on December 29, 2000. This
development is 44% pre-leased with an additional 17% committed.
-- The refinancing of a mortgage loan secured by 280 Park Avenue which
consisted of replacing the $220.0 million loan with a $270.0 million
loan. The new financing bears interest at a rate of 7.65% and matures
in December 2011.
-- The closing of permanent mortgage financing secured by Market Square
North, a property owned 50% by Boston Properties, in the amount of
$100.0 million at a rate of 7.70% and maturing in December 2010.
-- The acquisition of a 50 acre site known as Crane Meadow in
Marlborough, Massachusetts for approximately $7.2 million on December
21, 2000. The site is expected to support a development of 400,000
square feet.
-- The acquisition of a 3.7 acre site known as Almaden in San Jose,
California for approximately $26.2 million on December 11, 2000. The
site is expected to support a development of 841,000 square feet.
Boston Properties will conduct a conference call tomorrow, January 24,
2001 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
February 1, 2001 by dialing (888) 266-2086 and entering the passcode 4892527.
Additionally, a copy of Boston Properties' fourth quarter 2000
"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
800 Boylston Street
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 the
Northeast Corridor from Virginia to Greater Boston and in Greater San
Francisco.
To receive Boston Properties' latest news and corporate developments via
fax at no cost, please call 1-800-PRO-INFO; use Company code BXP. Visit the
Company's web site at http://www.bostonproperties.com .
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.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Year ended
December 31, December 31,
2000 1999 2000 1999
(unaudited and in thousands, except for
per share amounts)
Revenue
Rental:
Base rent $183,319 $170,663 $715,358 $646,924
Recoveries from tenants 23,736 18,864 92,692 72,742
Parking and other 12,797 11,479 50,892 45,751
Total rental revenue 219,852 201,006 858,942 765,417
Development and management
services 3,405 3,344 11,837 14,708
Interest and other 5,270 797 8,574 6,439
Total revenue 228,527 205,147 879,353 786,564
Expenses
Operating 67,335 64,947 264,701 249,268
General and administrative 9,791 8,110 35,659 29,455
Interest 50,854 53,964 217,064 205,410
Depreciation and amortization 36,088 31,744 133,150 120,059
Total expenses 164,068 158,765 650,574 604,192
Income before minority interests
and joint venture income 64,459 46,382 228,779 182,372
Minority interest in property
partnerships (250) (141) (932) (4,614)
Income (loss) from unconsolidated
joint ventures 402 (180) 1,758 468
Income before minority interest
in Operating Partnership 64,611 46,061 229,605 178,226
Minority interest in Operating
Partnership (19,472) (16,452) (76,039) (64,917)
Income before gain (loss) on
sales of real estate 45,139 29,609 153,566 113,309
Gain (loss) on sales of real
estate, net 73 6,417 (234) 6,467
Income before extraordinary
income 45,212 36,026 153,332 119,776
Extraordinary loss, net (334) - (334) -
Net income before preferred
dividend 44,878 36,026 152,998 119,776
Preferred dividend (1,643) (1,654) (6,572) (5,829)
Net income available to common
shareholders $43,235 $34,372 $146,426 $113,947
Basic earnings per share:
Income before extraordinary
item $0.54 $0.51 $2.05 $1.72
Extraordinary loss, net (0.01) - - -
Net income available to common
shareholders $0.53 $0.51 $2.05 $1.72
Weighted average number of
common shares outstanding 80,885 67,906 71,424 66,235
Diluted earnings per share:
Income before extraordinary
item $0.52 $0.50 $2.01 $1.71
Extraordinary loss, net - - - -
Net income available to common
shareholders $0.52 $0.50 $2.01 $1.71
Weighted average number of
common and common
equivalent shares outstanding 83,013 68,247 72,741 66,776
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended Year ended
December 31, December 31,
2000 1999 2000 1999
Income before minority interests and
joint venture income $64,459 $46,382 $228,779 $182,372
Add:
Real estate depreciation and
amortization 36,830 31,914 134,386 119,583
Income (loss) from unconsolidated
joint ventures 402 (180) 1,758 468
Less:
Minority property partnerships'
share of Funds from Operations (287) (179) (1,061) (3,681)
Preferred dividends and
distributions (8,246) (8,303) (32,994) (32,111)
Funds from operations $93,158 $69,634 $330,868 $266,631
Funds from operations available to
common shareholders $71,888 $51,555 $247,371 $196,101
Weighted average shares outstanding
- basic 80,885 67,906 71,424 66,235
Per share - basic $0.89 $0.76 $3.46 $2.96
Weighted average shares outstanding
- diluted 96,008 81,249 85,723 79,473
Per share - diluted $0.85 $0.74 $3.31 $2.89
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
December 31,
2000 1999
(in thousands, except share amounts)
ASSETS
Real estate: $6,112,779 $5,609,424
Less: accumulated depreciation (586,719) (470,591)
Total real estate 5,526,060 5,138,833
Cash and cash equivalents 280,957 12,035
Escrows 85,561 40,254
Investments in securities 7,012 14,460
Tenant and other receivables, net 26,852 28,259
Accrued rental income, net 91,684 82,228
Deferred charges, net 77,319 53,733
Prepaid expenses and other assets 41,154 28,452
Investments in joint ventures 89,871 36,518
Total assets $6,226,470 $5,434,772
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Mortgage notes payable $3,357,281 $2,955,584
Unsecured line of credit - 366,000
Note payable 57,610 -
Accounts payable and accrued
expenses 57,338 66,780
Dividends and distributions
payable 71,274 50,114
Accrued interest payable 5,599 8,486
Other liabilities 51,926 48,282
Total liabilities 3,601,028 3,495,246
Commitments and contingencies - -
Minority interests 877,715 781,962
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, 86,630,089 and
67,910,434 issued and
outstanding in 2000 and 1999,
respectively 866 679
Additional paid-in capital 1,674,013 1,067,778
Dividends in excess of earnings (14,559) (10,893)
Unearned compensation (848) -
Accumulated other comprehensive
loss (11,745) -
Total stockholders' equity 1,647,727 1,057,564
Total liabilities and
stockholders' equity $6,226,470 $5,434,772
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
December 31, 2000 December 31, 1999
Greater Boston 99.3% 96.7%
Greater Washington, D.C. 98.5% 96.4%
Midtown Manhattan 99.9% 97.8%
Baltimore, MD 99.8% 99.7%
Richmond, VA 100.0% 98.0%
Princeton/East Brunswick, NJ 98.7% 98.9%
Greater San Francisco 97.9% 96.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.9% 97.1%
Occupancy by Type
December 31, 2000 December 31, 1999
Class A Office Portfolio 99.0% 97.7%
R&D Portfolio 98.0% 93.0%
Industrial Portfolio 95.9% 90.4%
Total Portfolio 98.9% 97.1%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Investor Relations, Elaine Quinlan of Boston
Properties, 617-236-3300; or General, Marilynn Meek, Media,
Judith Sylk-Siegel, 212-661-8030, Analyst, Claire Koeneman,
312-266-7800, all of The Financial Relations Board
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