Reports FFO per share of $0.74
BOSTON, Jan. 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and year ended December 31, 1999.
Funds from Operations (FFO) for the quarter ended December 31, 1999 were
$51.6 million, or $0.76 per share basic and $0.74 per share diluted, compared
to FFO of $43.6 million, or $0.69 per share basic and $0.68 per share diluted
for the quarter ended December 31, 1998. This represents 8.8% year to year
increase in diluted FFO per share. The weighted average number of basic and
diluted shares outstanding totaled 67,906,320 and 81,248,871, respectively,
for the quarter ended December 31, 1999 and 63,527,666 and 68,432,476,
respectively, for the same quarter last year. FFO for the year ended
December 31, 1999 were $196.1 million, or $2.96 per share basic and $2.89 per
share diluted, compared to FFO of $153.0 million, or $2.52 per share basic and
$2.50 per share diluted for the year ended December 31, 1998. This represents
a 15.6% year to year increase in diluted FFO per share. The weighted average
number of basic and diluted shares outstanding totaled 66,235,417 and
79,473,337, respectively, for the year ended December 31, 1999 and 60,776,038
and, 62,443,463, respectively, for the same period last year.
Revenues were $205.1 million for the quarter and $786.6 million for the
year ended December 31, 1999, compared to revenues of $170.0 million and
$513.8 million for the same periods in 1998. Net income available to common
shareholders for the quarter was $34.4 million and $113.9 million for the year
ended December 31, 1999, compared to $18.2 million and $93.1 million for the
same periods in 1998. Income before gain on sale and extraordinary loss per
share for the quarter ended December 31, 1999 was $0.41 per share basic and
diluted and $0.43 per share basic and $0.40 per share diluted for the quarter
ended December 31, 1998. Income before gain on sale and extraordinary loss
per share for the year ended December 31, 1999 was $1.62 per share basic and
$1.61 per share diluted, compared to $1.62 per share basic and $1.61 per share
diluted for the same period 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, 1999. In the opinion of management, all adjustments
considered necessary for a fair presentation of these reported results have
been made.
As of December 31, 1999, the Company's portfolio consisted of
136 properties comprising more than 35.6 million square feet, including twelve
properties under development totaling 3.6 million square feet. The overall
occupancy rate for the properties in service as of December 31, 1999 was
97.1%.
Additional highlights of the fourth quarter include:
-- Disposition of 8 Arlington Street, a 30,526 square foot office building
in Boston, Massachusetts, on December 14, 1999, for gross cash proceeds
of approximately $10.25 million.
-- Acquisition of a 14.3-acre site and ongoing development of a three
building, 381,000 square foot Class A office complex in Needham,
Massachusetts for approximately $31.0 million on December 14, 1999.
The office complex will be fully leased to Parametric Technology
Corporation under a 12-year lease.
-- Acquisition of a 11.9-acre site in Dulles, Virginia for approximately
$2.9 million on December 1, 1999. A 160,502 square foot Class A office
building is currently under development.
-- Closing of a construction loan secured by the New Dominion Technology
development project in the amount of $48.6 million at a rate of
LIBOR + 1.60% and maturing in August 2000.
-- Signing of an agreement with Allied Riser Communications Corporation
("Allied") for Allied to provide broadband data, video and voice
communications services over fiber-optic networks to 77 Class A office
buildings comprising more than 20.6 million square feet. The agreement
provides for Boston Properties to participate in any revenues Allied
generates resulting from Boston Properties' buildings and for Boston
Properties to receive 404,438 warrants for shares of common stock in
Allied.
-- Signing an agreement with Cypress Communications ("Cypress") for
Cypress to provide server-based voice, video and data transmission
services to 40 Class A office buildings comprising more than
15.3 million square feet. In return, the agreement provides for Boston
Properties to participate in any revenues Cypress generates resulting
from Boston Properties' buildings and for Boston Properties to receive
231,681 warrants for shares of common stock in Cypress.
Transactions completed subsequent to December 31, 1999:
-- Acquisition of the Company's joint venture partner's interest in One
and Two Reston Overlook in Reston, Virginia on January 12, 2000 for
approximately $15.2 million.
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. Forward-looking statements are inherently
subject to risks and uncertainties, many of which cannot be predicted with
accuracy. Acquisitions that are pursued by Boston Properties may not be
consummated for a variety of reasons, including a failure to reach agreement
with the selling party regarding the acquisition price or other terms of a
contribution or acquisition agreement. Agreements that the Company enters
into may be terminated for a variety of reasons, including a failure by the
Company or the other party to fulfill all conditions required for consummation
of the agreements.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except for per share amounts)
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
(unaudited) (unaudited)
Revenue
Rental:
Base rent $170,663 $140,109 $646,924 $419,756
Recoveries from
tenants 18,864 15,671 72,742 48,718
Parking and other 11,479 6,280 45,751 19,103
Total rental
revenue 201,006 162,060 765,417 487,577
Development and
management services 3,344 3,517 14,708 12,411
Interest and other 797 4,449 6,439 13,859
Total revenue 205,147 170,026 786,564 513,847
Expenses
Operating 64,947 53,303 249,268 150,490
General and
administrative 8,110 5,753 29,455 22,504
Interest 53,964 42,934 205,410 124,860
Depreciation and
amortization 31,744 24,205 120,059 75,418
Total expenses 158,765 126,195 604,192 373,272
Income before
minority interests
and joint venture
income 46,382 43,831 182,372 140,575
Minority interests in
property partnerships (141) (2,163) (4,614) (2,554)
Income (loss) from
unconsolidated joint
ventures (180) -- 468 --
Income before minority
interest in Operating
Partnership 46,061 41,668 178,226 138,021
Minority interest in
Operating
Partnership (16,452) (14,397) (64,917) (39,428)
Income before gain
on sale and
extraordinary item 29,609 27,271 113,309 98,593
Gain on sale of real
estate, net of
minority interest 6,417 -- 6,467 --
Extraordinary loss,
net of minority
interest -- (9,045) -- (5,481)
Net income before
preferred dividend 36,026 18,226 119,776 93,112
Preferred dividend (1,654) -- (5,829) --
Net income available
to common
shareholders $34,372 $18,226 $113,947 $93,112
Basic earnings per share:
Income before gain on
sale and extraordinary
loss $0.41 $0.43 $1.62 $1.62
Gain on sale, net 0.10 -- 0.10 --
Extraordinary loss, net -- (0.14) -- (0.09)
Net income available to
common shareholders $0.51 $0.29 $1.72 $1.53
Weighted average number
of common shares
outstanding 67,906 63,528 66,235 60,776
Diluted earnings per share:
Income before gain on
sale and extraordinary
loss $0.41 $0.40 $1.61 $1.61
Gain on sale, net 0.09 -- 0.10 --
Extraordinary loss, net -- (0.13) -- (0.09)
Net income available to
common shareholders $0.50 $0.27 $1.71 $1.52
Weighted average number
of common and common
equivalent shares
outstanding 68,247 68,432 66,776 61,308
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
December 31, December 31,
1999 1998
(unaudited)
ASSETS
Real estate: $5,612,258 $4,917,193
Less: accumulated depreciation (470,591) (357,384)
Total real estate 5,141,667 4,559,809
Cash and cash equivalents 12,035 12,166
Notes receivable -- 420,143
Escrows 40,254 19,014
Tenant and other receivables, net 28,362 40,830
Accrued rental income, net 82,228 64,251
Deferred charges, net 50,899 46,029
Prepaid expenses and other assets 42,912 26,058
Investments in joint ventures 36,415 46,787
Total assets $5,434,772 $5,235,087
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,955,584 $2,653,581
Notes payable -- 420,143
Unsecured line of credit 366,000 15,000
Accounts payable and accrued expenses 66,780 42,897
Dividends payable 50,114 40,494
Accrued interest payable 8,486 7,307
Other liabilities 48,282 27,950
Total liabilities 3,495,246 3,207,372
Commitments and contingencies -- --
Minority interests 781,962 1,079,234
Series A Convertible Redeemable
Preferred Stock, liquidation
preference $50.00 per share,
2,000,000 shares issued
and outstanding 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,
67,910,434 and 63,527,819 issued and
outstanding in 1999 and 1998,
respectively 679 635
Additional paid-in capital 1,067,778 955,711
Dividends in excess of earnings (10,893) (7,865)
Total stockholders' equity 1,057,564 948,481
Total liabilities and
stockholders' equity $5,434,772 $5,235,087
BOSTON PROPERTIES, INC.
Funds from Operations
(unaudited and in thousands)
Three months ended Year ended
December 31, December 31,
1999 1998 1999 1998
Income before minority
interests and joint
venture income (loss) $46,382 $43,831 $182,372 $140,575
Add:
Real estate
depreciation and
amortization 31,914 23,930 119,583 74,649
Income (loss) from
unconsolidated joint
ventures (180) -- 468 --
Less:
Minority property
partnership's share
of Funds from Operations 179 3,725 3,681 4,185
Preferred dividends
and distributions 8,303 4,325 32,111 5,830
Funds from operations $69,634 $59,711 $266,631 $205,209
Funds from operations
available to common
shareholders $51,555 $43,607 $196,101 $153,045
Weighted average shares
outstanding - basic 67,906 63,528 66,235 60,776
Per share - basic $0.76 $0.69 $2.96 $2.52
Weighted average shares
outstanding - diluted 81,249 68,432 79,473 62,443
Per share - diluted $0.74 $0.68 $2.89 $2.50
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
December 31, 1999 December 31, 1998
Greater Boston 96.7% 97.0%
Greater Washington, D.C. 96.4% 98.5%
Midtown Manhattan 97.8% 99.9%
Baltimore, MD 99.7% 99.8%
Richmond, VA 98.0% 98.8%
Princeton/East Brunswick, NJ 98.9% 98.7%
Greater San Francisco 96.4% 98.5%
Bucks County, PA 100.0% 100.0%
Total Portfolio 97.1% 98.4%
Occupancy by Type
December 31, 1999 December 31, 1998
Class A Office Portfolio 97.7% 98.8%
R&D Portfolio 93.0% 99.2%
Industrial Portfolio 90.4% 89.3%
Total Portfolio 97.1% 98.4%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Elaine Quinlan, Investor Relations of Boston
Properties, Inc., 617-236-3300, or General Info., Marianne
Stewart, 212-661-8030, Analyst, Claire Koeneman, 312-266-7800, or
Media, Judith Sylk-Siegel, 212-661-8030, all of The Financial
Relations Board
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