Reports FFO Per Share of $0.78
BOSTON, April 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the first quarter ended March 31, 2000.
Funds from Operations (FFO) for the quarter ended March 31, 2000 were
$54.6 million, or $0.80 per share basic and $0.78 per share diluted, compared
to FFO of $45.7 million, or $0.72 per share basic and $0.70 per share diluted
for the quarter ended March 31, 1999. This represents 11.4% year to year
increase in diluted FFO per share. The weighted average number of basic and
diluted shares outstanding totaled 67,942,675 and 81,380,969, respectively,
for the quarter ended March 31, 2000 and 63,533,638 and 75,862,001,
respectively, for the same quarter last year.
Revenues were $210.3 million for the quarter ended March 31, 2000,
compared to revenues of $187.6 million for the same period in 1999. Net
income available to common shareholders for the quarter ended March 31, 2000
was $31.0 million, compared to $24.9 million for the same period in 1999. Net
income per share available to common shareholders for the quarter ended
March 31, 2000 was $0.46 per share basic and $0.45 per share diluted, compared
to $0.39 per share basic and 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 ended
March 31, 2000. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of March 31, 2000, the Company's portfolio consisted of 139 properties
comprising more than 36.0 million square feet, including 12 properties under
development totaling 3.6 million square feet. The overall occupancy rate for
the properties in service as of March 31, 2000 was 98.5%.
Additional highlights of the first quarter include:
-- The acquisition of the Company's joint venture partner's 75% interest
in One and Two Reston Overlook in Reston, Virginia on January 12, 2000
for cash of approximately $15.2 million.
-- The closing of construction financing totaling $420.0 million
collateralized by the Five Times Square development project in New York
City. Such financing bears interest at a rate equal to LIBOR + 2.00%
and matures in January 2003.
-- The entering into of three interest rate hedge agreements with a major
financial institution for a total of $450.0 million.
-- The acquisition of three Class A office buildings totaling
approximately 408,000 square feet at Carnegie Center in Princeton, New
Jersey, on March 1, 2000, under terms of the original Carnegie Center
contribution agreement dated June 30, 1998. The properties are located
within the existing Carnegie Center Portfolio. The properties were
acquired from a related party for approximately $66.5 million, which
was funded through the assumption of debt of approximately $49.0
million at a rate of 7.39% and the issuance of 577,817 common units of
partnership interest in the operating partnership valued at
approximately $17.5 million. The acquisition was approved by a vote of
the independent directors of the Company.
-- The closing of construction financing totaling $10.0 million
collateralized by the 302 Carnegie Center development project in
Princeton, New Jersey. Such financing bears interest at a rate equal
to LIBOR + 1.90% and matures in March 2003.
-- The acquisition of an 8.9-acre site in Herndon, Virginia for
approximately $3.2 million on March 23, 2000. The site will support
approximately 135,000 square feet of development.
-- The amendment and restatement of the Company's $500.0 million unsecured
line of credit agreement extending the term to March 2003.
Transactions completed subsequent to March 31, 2000:
-- The refinancing of the mortgage loan on Ten Cambridge Center and the
North Garage which consisted of replacing the $40.0 million mortgage
loan with a $36.0 million loan and removing the North Garage as
collateral. The new financing bears interest at a rate equal to 8.27%
and matures in April 2010.
-- The closing of construction financing totaling $32.0 million
collateralized by the 2600 Tower Oaks Boulevard development project in
Rockville, Maryland. Such financing bears interest at a rate equal to
LIBOR + 1.90% and matures in October 2002.
-- The refinancing of the mortgage loan on Metropolitan Square which
consisted of replacing the $104.0 million mortgage loan with a $140.0
million loan. The new financing bears interest at a rate equal to
8.23% and matures in April 2010.
-- The closing of construction financing totaling $78.0 million
collateralized by the 140 Kendrick Street development project in
Needham, Massachusetts. Such financing matures in July 2002 and
consists of two tranches: $16.4 million bearing interest at a rate of
LIBOR + 1.35% and $61.6 million bearing interest at a rate of
LIBOR + 1.65%.
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
(unaudited and in thousands, except for per share amounts)
Three months ended
March 31,
2000 1999
Revenue
Rental:
Base rent $170,337 $151,609
Recoveries from tenants 23,336 17,414
Parking and other 13,008 10,924
Total rental revenue 206,681 179,947
Development and management services 2,863 4,047
Interest and other 710 3,646
Total revenue 210,254 187,640
Expenses
Operating 65,177 57,350
General and administrative 7,408 6,610
Interest 55,215 50,459
Depreciation and amortization 32,231 27,794
Total expenses 160,031 142,213
Income before minority interests
and joint venture income 50,223 45,427
Minority interests in property partnerships (196) (4,155)
Income from unconsolidated joint ventures 145 213
Income before minority interest
in Operating Partnership 50,172 41,485
Minority interest in Operating Partnership (17,552) (15,712)
Net income before preferred dividend 32,620 25,773
Preferred dividend (1,643) (839)
Net income available to common shareholders $30,977 $24,934
Basic earnings per share:
Net income available to common shareholders $0.46 $0.39
Weighted average number of
common shares outstanding 67,943 63,534
Diluted earnings per share:
Net income available to common shareholders $0.45 $0.39
Weighted average number of common and common
equivalent shares outstanding 68,380 64,078
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, December 31,
2000 1999
(unaudited)
ASSETS
Real estate: $5,848,141 $5,612,258
Less: accumulated depreciation (501,554) (470,591)
Total real estate 5,346,587 5,141,667
Cash and cash equivalents 18,335 12,035
Escrows 30,085 40,254
Investment in securities 73,023 14,460
Tenant and other receivables, net 34,539 28,362
Accrued rental income, net 85,089 82,228
Deferred charges, net 67,711 50,899
Prepaid expenses and other assets 24,407 28,452
Investments in joint ventures 36,541 36,415
Total assets $5,716,317 $5,434,772
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $3,186,399 $2,955,584
Unsecured line of credit 344,000 366,000
Accounts payable and accrued expenses 57,098 66,780
Dividends and distributions payable 51,205 50,114
Accrued interest payable 5,154 8,486
Other liabilities 55,553 48,282
Total liabilities 3,699,409 3,495,246
Commitments and contingencies -- --
Minority interests 808,826 781,962
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, 67,954,225 and
67,910,434 issued and outstanding in
2000 and 1999, respectively 680 679
Additional paid-in capital 1,060,341 1,067,778
Dividends in excess of earnings (10,495) (10,893)
Deferred compensation (1,007) --
Accumulated other comprehensive income 58,563 --
Total stockholders' equity 1,108,082 1,057,564
Total liabilities and stockholders'
equity $5,716,317 $5,434,772
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended
March 31,
2000 1999
Income before minority interests
and joint venture income $50,223 $45,427
Add:
Real estate depreciation and amortization 32,052 27,549
Income from unconsolidated joint ventures 145 213
Less:
Minority property partnership's share
of Funds from Operations (224) (3,163)
Preferred dividends and distributions (8,250) (7,212)
Funds from operations $73,946 $62,814
Funds from operations available
to common shareholders $54,641 $45,697
Weighted average shares outstanding - basic 67,943 63,534
Per share - basic $0.80 $0.72
Weighted average shares outstanding - diluted 81,381 75,862
Per share - diluted $0.78 $0.70
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
Occupancy by Location
March 31, 2000 Dec. 31, 1999
Greater Boston 99.0% 96.7%
Greater Washington, D.C. 96.3% 96.4%
Midtown Manhattan 100.0% 97.8%
Baltimore, MD 99.3% 99.7%
Richmond, VA 99.7% 98.0%
Princeton/East Brunswick, NJ 99.7% 98.9%
Greater San Francisco 99.0% 96.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.5% 97.1%
Occupancy by Type
March 31, 2000 Dec. 31, 1999
Class A Office Portfolio 99.1% 97.7%
R&D Portfolio 94.0% 93.0%
Industrial Portfolio 92.5% 90.4%
Total Portfolio 98.5% 97.1%
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., Marilynn Meek,
212-661-8030, Analysts, Claire Koeneman, 312-266-7800, or Media,
Judith Sylk-Siegel, 212-661-8030, all of The Financial Relations
Board
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