BOSTON, Jan. 26 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the fourth quarter and the year ended December 31, 1998.
Funds from Operations (FFO) for the quarter ended December 31, 1998 were
approximately $43.6 million, or $0.69 per share basic and $0.68 per share
diluted, compared to FFO of approximately $20.4 million, or $0.53 per share
basic and $0.52 per share diluted for the quarter ended December 31, 1997.
The weighted average number of basic and diluted shares outstanding totaled
63,527,666 and 68,432,476, respectively, for the quarter ended December 31,
1998 and 38,693,930 and 39,107,768, respectively, for the same quarter last
year. FFO for the year ended December 31, 1998 were approximately
$153.0 million, or $2.52 per share basic and $2.50 per share diluted, compared
to FFO on a pro forma basis of approximately $76.5 million, or $1.98 per share
basic and $1.96 per share diluted, for the year ended December 31, 1997.
Revenues were approximately $170.0 million for the quarter and
$513.8 million for the year ended December 31, 1998, compared to revenues of
approximately $77.3 million and $255.1 million (pro forma) for the same
periods in 1997. Income before extraordinary items was approximately
$27.3 million for the quarter and $98.6 million for the year ended
December 31, 1998, compared to $12.4 million and $48.9 million (pro forma),
respectively, for the same periods in 1997. Income before extraordinary items
per share for the quarter was $0.43 basic and diluted, compared to $0.32 basic
and diluted last year, and for the year ended December 31, 1998 was $1.62
basic and diluted, compared to $1.26 basic and $1.25 diluted on a pro forma
basis last year.
The reported results are unaudited and there can be no assurance that the
results will not vary from the final audited information for the year ended
December 31, 1998. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
Pro forma results are presented as if the Company's initial public offering of
common stock and related formation transactions (which were completed on June
23, 1997) had occurred at the beginning of the relevant period.
As of December 31, 1998, the Company's portfolio consisted of 122
properties comprising more than 31.0 million square feet, including nine
properties under development totaling approximately 2.0 million square feet.
The overall occupancy rate for the properties in service as of December 31,
1998 was 98.4%.
Additional highlights of the fourth quarter, as previously announced,
include:
-- Closing of the first phase of Embarcadero Center, an approximately
3.7 million-square-foot mixed-use urban center located in San
Francisco, Calif., on November 12, 1998 for approximately
$1.2 billion.
-- Acquisition of Reservoir Place, a 529,992-square-foot Class A office
building in Waltham, Massachusetts, on November 3, 1998 for
approximately $96.0 million.
Transactions announced since the quarter ended December 31, 1998 include:
-- Signing of a binding agreement to acquire, between now and January
2001, the leasehold interest in the remaining two development sites in
New York City's Times Square for a total purchase price of
$312.25 million. Prudential Insurance Company of America, the seller,
will also retain the right to become a 33.33% equity participant in the
development ventures by contributing, upon an election to participate,
its proportionate share of the total project equity.
Boston Properties, Inc. is a fully integrated, self-administered and
self-managed real estate investment trust (REIT) that develops, redevelops,
acquires, manages, operates and owns a diverse portfolio of office,
industrial, and hotel properties located predominantly in the Greater Boston;
Greater Washington, D.C.; midtown Manhattan; Greater San Francisco;
Baltimore, Maryland; Princeton/East Brunswick, New Jersey; and Richmond,
Virginia markets. The Company is one of the largest owners and developers of
office properties in the United States.
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
(unaudited and in thousands, except per share data)
Three months ended Year ended
December 31, December 31,
1998 1997 1998 1997
REVENUE (Pro forma)
Rental:
Base rent $140,109 $68,509 $426,874 $218,902
Recoveries from tenants 15,671 6,421 48,543 22,933
Parking and other 6,280 458 12,160 3,139
Total rental revenue 162,060 75,388 487,577 244,974
Development and management
services 3,517 1,591 12,411 7,029
Interest and other 4,449 309 13,859 3,105
Total revenue 170,026 77,288 513,847 255,108
EXPENSES
Rental:
Operating 30,451 10,764 80,894 33,114
Real estate taxes 22,852 11,437 69,596 35,401
General and administrative 5,753 3,525 22,504 12,233
Interest 42,934 22,214 124,860 65,011
Depreciation and
amortization 24,205 11,565 75,418 39,079
Total expenses 126,195 59,505 373,272 184,838
Income before minority
interests 43,831 17,783 140,575 70,270
Minority interest in property
partnerships (2,163) (146) (2,555) (449)
Income before minority interest
in Operating Partnership 41,668 17,637 138,020 69,821
Minority interest in
Operating Partnership (14,397) (5,265) (39,427) (20,952)
Income before extraordinary
items 27,271 12,372 98,593 48,869
Extraordinary loss on early debt
extinguishments, net (9,045) -- (5,481) --
Net income $18,226 $12,372 $93,112 $48,869
Basic earnings per share:
Income before extraordinary
items $ 0.43 $0.32 $1.62 $1.26
Extraordinary loss, net (0.14) -- (0.09) --
Net income $0.29 $0.32 $1.53 $1.26
Weighted average number
of common shares
outstanding 63,528 38,694 60,776 38,694
Diluted earnings per share:
Income before extraordinary
items $0.43 $0.32 $1.62 $1.25
Extraordinary loss, net (0.13) -- (0.09) --
Net income $0.30 $0.32 $1.53 $1.25
Weighted average number
of common shares
outstanding 68,432 39,108 62,443 39,108
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands, except share and per share data)
December 31, 1998 December 31, 1997
ASSETS
Real estate: $4,917,193 $1,796,500
Less: accumulated depreciation (357,384) (294,218)
Total real estate 4,559,809 1,502,282
Cash and cash equivalents 12,166 17,560
Escrows 19,014 14,178
Notes receivable 420,143 --
Tenant and other receivables, net 40,830 24,458
Accrued rental income, net 64,251 55,190
Deferred charges, net 46,029 35,485
Prepaid expenses and other assets 26,058 20,225
Investment in joint ventures 46,787 3,143
Total assets $5,235,087 $1,672,521
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,653,581 $1,099,253
Notes payable 420,143 --
Unsecured line of credit 15,000 233,000
Accounts payable and accrued expenses 33,638 23,822
Dividends payable 40,494 22,539
Accrued interest payable 7,307 6,581
Other liabilities 37,209 11,642
Total liabilities 3,207,372 1,396,837
Commitments and contingencies -- --
Minority interests 1,105,864 100,636
Stockholders' equity:
Preferred stock, $.01 par value,
50,000,000 shares authorized,
none issued or outstanding -- --
Excess stock, $.01 par value,
150,000,000 shares authorized, none
issued or outstanding -- --
Common stock, $.01 par value,
250,000,000 shares
authorized, 63,527,552 and 38,694,041 issued
and outstanding, respectively 635 387
Additional paid-in capital 929,081 172,347
Dividends in excess of earnings (7,865) 2,314
Total stockholders' equity 921,851 175,048
Total liabilities and
stockholders' equity $5,235,087 $1,672,521
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(Unaudited and in thousands)
Three Months Ended
Actual Actual
Dec. 31, 1998 Dec. 31, 1997 % Change
Income from operations
before minority interests $43,831 $17,783 146.48%
Add:
Real estate depreciation
and amortization 23,930 11,395 110.00%
Less:
Preferred allocation (4,325) -- --
Minority property partnerships'
share of Funds from
Operations (3,725) (161) 2213.66%
Funds from Operations $59,711 $29,017 105.78%
Company's share (A) $43,607 $20,355 114.23%
Funds from Operations per
share - basic $0.69 $0.53 30.48%
Weighted average shares
outstanding - basic 63,528 38,694 64.18%
Funds from Operations per
share - diluted $0.68 $0.52 30.65%
Weighted average shares
outstanding - diluted 68,432 39,108 74.98%
(A) Based on weighted average shares for the quarter. Company's share
for the quarter ended 12/31/98 was 73.03% and 70.15% for the quarter
ended 12/31/97.
Year Ended
Actual Pro Forma
Dec. 31, 1998 Dec. 31, 1997 % Change
Income from operations before
minority interests $140,575 $70,270 100.05%
Add:
Real estate depreciation
and amortization 74,649 38,527 93.76%
Less:
Preferred allocation (5,830) -- --
Minority property
partnerships' share of
Funds from Operations (4,185) (554) 655.42%
Funds from Operations $205,209 $108,243 89.58%
Company's share (B) $153,045 $76,485 100.10%
Funds from Operations
per share - basic $2.52 $1.98 27.40%
Weighted average shares
outstanding - basic 60,776 38,694 57.07%
Funds from Operations
per share - diluted $2.50 $1.96 27.83%
Weighted average shares
outstanding - diluted 62,443 39,108 59.67%
(B) Based on weighted average shares for the year. Company's share for
the year ended 12/31/98 was 74.58% and 70.66% for the pro forma year
ended 12/31/97.
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
(Unaudited)
Occupancy by Location
December 31, 1998 December 31, 1997
Greater Boston, MA 97.0% 98.3%
Greater Washington, DC 98.5% 97.3%
Midtown Manhattan, NY 99.9% 95.2%
Baltimore, MD 99.8% 98.0%
Richmond, VA 98.8% n/a
Princeton/East Brunswick, NJ 98.7% n/a
Greater San Francisco, CA 98.5% 98.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.4% 97.2%
Occupancy by Type
Class A Office Portfolio 98.8% 97.6%
R&D Portfolio 99.2% 97.3%
Industrial Portfolio 89.3% 93.4%
Total Portfolio 98.4% 97.2%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Edward H. Linde, President, CEO & Director,
or David G. Gaw, SVP & CFO, both of Boston Properties,
617-859-2600; or General Information, Marianne Stewart, Media,
Judith Sylk-Siegel, 212-661-8030, or Analysts, Claire Koeneman,
312-266-7800, all of The Financial Relations Board
NOTE TO EDITORS: 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. Or visit The Financial
Relations Board's web site at http://www.frbinc.com
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