Reports Diluted FFO Per Share of $0.85 Before Non-Cash Accounting
Charge Related to FAS 133 of ($0.02) Per Share
BOSTON, April 24 /PRNewswire Interactive News Release/ -- Boston
Properties, Inc. (NYSE: BXP) today reported results for the first quarter
ended March 31, 2001.
Funds from Operations (FFO) for the quarter ended March 31, 2001 were
$79.2 million, or $0.89 per share basic and $0.85 per share diluted before a
non-cash accounting charge of approximately ($0.02) per share on a diluted
basis related to the application of FAS 133, "Accounting for Derivative
Instruments and Hedging Activities" for the quarter ended March 31, 2001. The
FAS 133 charge relates to the change in fair value during the quarter for
certain interest rate protection contracts and other derivatives. This
compares to FFO of $54.6 million, or $0.80 per share basic and $0.78 per share
diluted for the quarter ended March 31, 2000. This represents a 9.0% year to
year increase in diluted FFO per share excluding the charge related to FAS
133. FFO including the charge for the application of FAS 133 was $0.87 per
share basic and $0.83 per share diluted for the quarter ended March 31, 2001.
The weighted average amount of basic and diluted shares outstanding totaled
88,687,900 and 104,160,181, respectively, for the quarter ended March 31, 2001
and 67,942,675 and 81,380,969, respectively, for the same quarter last year.
Revenues were $233.5 million for the quarter ended March 31, 2001,
compared to revenues of $210.3 million for the same period in 2000. Net
income available to common shareholders for the quarter ended March 31, 2001
was $45.6 million, compared to $31.0 million for the same period in 2000.
Income before gain on sale and cumulative effect of a change in accounting
principle (related to the adoption of FAS 133) for the quarter ended March 31,
2001 was $0.54 per share basic and $0.52 per share diluted, compared to $0.46
per share basic and $0.45 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 submitted on F Form 10-Q for
the quarter ended March 31, 2001. In the opinion of management, all
adjustments considered necessary for a fair presentation of these reported
results have been made.
As of March 31, 2001, the Company's portfolio consisted of 146 properties
comprising more than 39.2 million square feet, including 15 properties under
construction totaling 5.4 million square feet. The overall occupancy rate for
the properties in service as of March 31, 2001 was 98.4%.
Additional highlights of the first quarter included:
-- The acquisition of a significant interest in Skyline Holdings LLC.
Skyline signed a contract on February 7, 2001 to acquire Citigroup
Center in New York City from Dai-Ichi Life Investment Properties, Inc.
The acquisition of Citigroup Center, a 1.6 million square foot building
in Midtown Manhattan, is expected to close on April 25, 2001.
-- The acquisition of a 4.3 acre site known as 77 Fourth Avenue in
Waltham, Massachusetts for approximately $13.0 million on February 13,
2001. The site is expected to support a development of 202,000 square
feet.
-- The disposition of 25-33 Dartmouth Street, an industrial building
totaling 78,045 square feet, on March 30, 2001 for net proceeds of
approximately $6.6 million. The property was sold using a like-kind
exchange technique with the acquisition of a parcel of land known as
Crane Meadow in 2001.
-- The closing of a construction loan secured by the Waltham Weston
Corporate Center development in the amount of $70.0 million at a rate
of LIBOR + 1.70% and maturing in February 2004.
Boston Properties will conduct a conference call tomorrow, April 25, 2001
at 9:30 a.m. (Eastern Time) to discuss the results of this year's first
quarter. The number to call for this interactive teleconference is
(888) 747-3510. A replay of the conference call will be available through May
1, 2001 by dialing (888) 266-2086 and entering the passcode 5103224.
Additionally, a copy of Boston Properties first quarter 2001 "Supplemental
Operating and Financial Data" will be available on the Investor Section of the
company's web site 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, Inc. 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, D.C. and 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
March 31,
2001 2000
(unaudited and in thousands,
except for per share amounts)
Revenue
Rental:
Base rent $185,691 $170,337
Recoveries from tenants 26,178 23,336
Parking and other 13,746 13,008
Total rental revenue 225,615 206,681
Development and management services 3,397 2,863
Interest and other 4,444 710
Total revenue 233,456 210,254
Expenses
Operating 70,343 65,177
General and administrative 9,950 7,408
Interest 47,853 55,215
Depreciation and amortization 34,740 32,231
Total expenses 162,886 160,031
Income before net derivative losses
(SFAS No. 133), minority interests
and joint venture income 70,570 50,223
Net derivative losses (SFAS No. 133) (3,055) -
Minority interest in property
partnership (255) (196)
Income from unconsolidated joint
ventures 1,127 145
Income before minority interest in
Operating Partnership 68,387 50,172
Minority interest in Operating
Partnership (19,024) (17,552)
Income before gain on sale of real
estate 49,363 32,620
Gain on sale of real estate, net of
minority interest 4,654 -
Income before cumulative effect of a
change in accounting principle 54,017 32,620
Cumulative effect of a change in
accounting principle, net of
minority interest (6,767) -
Net income before preferred dividend 47,250 32,620
Preferred dividend (1,643) (1,643)
Net income available to common
shareholders $45,607 $30,977
Basic earnings per share:
Income before gain on sale and
cumulative effect of a change in
accounting principle $0.54 $0.46
Gain on sale, net of minority
interest 0.05 -
Cumulative effect of a change in
accounting principle, net of
minority interest (0.08) -
Net income available to common
shareholders $0.51 $0.46
Weighted average number of common
shares outstanding 88,688 67,943
Diluted earnings per share:
Income before gain on sale and
cumulative effect of a change in
accounting principle $0.52 $0.45
Gain on sale, net of minority
interest 0.05 -
Cumulative effect of a change in
accounting principle, net of
minority interest (0.07) -
Net income available to common
shareholders $0.50 $0.45
Weighted average number of common
and common equivalent shares outstanding 91,171 68,380
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2001 2000
(unaudited)
(in thousands, except for share amounts)
ASSETS
Real estate: $6,284,655 $6,112,779
Less: accumulated depreciation (616,620) (586,719)
Total real estate 5,668,035 5,526,060
Cash and cash equivalents 241,819 280,957
Escrows 29,861 85,561
Investments in securities 6,060 7,012
Tenant and other receivables, net 24,443 26,852
Accrued rental income, net 97,657 91,684
Deferred charges, net 76,209 77,319
Prepaid expenses and other assets 73,539 41,154
Investments in unconsolidated joint
ventures 92,456 89,871
Total assets $6,310,079 $6,226,470
LIABILITIES AND STOCKHOLDERS'
EQUITY
Liabilities:
Mortgage notes and bonds payable $3,450,347 $3,414,891
Accounts payable and accrued
expenses 58,542 57,338
Dividends and distributions
payable 71,917 71,274
Interest rate contracts 19,774 -
Accrued interest payable 8,127 5,599
Other liabilities 56,943 51,926
Total liabilities 3,665,650 3,601,028
Commitments and contingencies - -
Minority interest in Operating
Partnership 821,575 877,715
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, 89,701,122 and
86,630,089 issued and
outstanding in 2001 and 2000,
respectively 897 866
Additional paid-in capital 1,759,714 1,673,349
Dividends in excess of earnings (15,829) (13,895)
Unearned compensation (2,531) (848)
Accumulated other comprehensive
loss (19,397) (11,745)
Total stockholders' equity 1,722,854 1,647,727
Total liabilities and
stockholders' equity $6,310,079 $6,226,470
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended
March 31,
2001 2000
Income before net derivative losses
(SFAS No. 133), minority interests
and joint venture income $70,570 $50,223
Add:
Real estate depreciation and
amortization 35,557 32,052
Income from unconsolidated joint
ventures 1,127 145
Less:
Net derivative losses
(SFAS No. 133) (3,055) -
Minority property partnership's
share of funds from operations (303) (224)
Preferred dividends and
distributions (8,221) (8,250)
Funds from operations 95,675 73,946
Add:
Net derivative losses (SFAS No.
133) 3,055 -
Funds from operations before net
derivative losses (SFAS No. 133) $98,730 $73,946
Funds from operations available to
common shareholders
before net derivative losses (SFAS
No. 133) $79,201 $54,641
Weighted average shares outstanding -
basic 88,688 67,943
FFO per share basic before net derivative
losses (SFAS No. 133) $0.89 $0.80
Weighted average shares outstanding -
diluted 104,160 81,381
FFO per share diluted before net
derivative losses (SFAS No. 133) $0.85 $0.78
FFO per share diluted after net
derivative losses (SFAS No. 133) $0.83 $0.78
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
Occupancy by Location
March 31, 2001 December 31, 2000
Greater Boston 98.8% 99.3%
Greater Washington 98.7% 98.5%
Midtown Manhattan 99.6% 99.9%
Baltimore, MD 99.5% 99.8%
Richmond, VA 99.6% 100.0%
Princeton/East Brunswick, NJ 98.4% 98.7%
Greater San Francisco 95.9% 97.9%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.4% 98.9%
Occupancy by Type
March 31, 2001 December 31, 2000
Class A Office Portfolio 98.7% 99.0%
Office/Technical Portfolio 98.5% 98.0%
Industrial Portfolio 88.0% 95.9%
Total Portfolio 98.4% 98.9%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Investor Relations, Elaine Quinlan of Boston
Properties, Inc., 617-236-3300; General Info., Marilynn Meek,
212-661-8030, Analysts, Claire Koeneman, 312- 266-7800, Media,
Judith Sylk-Siegel, 212-661-8030, all of The Financial Relations
Board
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