BOSTON, April 27 /PRNewswire/ -- Boston Properties, Inc.
(NYSE: BXP) today reported results for the first quarter ended March 31, 1999.
Funds from Operations (FFO) for the quarter ended March 31, 1999 were
approximately $45.7 million, or $0.72 per share basic and $0.70 per share
diluted, compared to FFO of approximately $29.3 million, or $0.54 per share
basic and $0.53 per share diluted for the quarter ended March 31, 1998. The
weighted average number of basic and diluted shares outstanding totaled
63,533,638 and 75,862,001 for the quarter ended March 31, 1999, and 54,282,930
and 54,901,575, respectively, for the same quarter last year.
Revenues were approximately $187.6 million for the quarter, compared to
revenue of $95.6 million for the same period in 1998. Net income available to
common shareholders for the quarter was approximately $24.9 million, compared
to $19.6 million for the same period in 1998. Net income per share available
to common shareholders for the quarter was $0.39 per share basic and diluted,
compared to $0.36 per share basic and diluted 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, 1999. In the opinion of management, all adjustments considered necessary
for a fair presentation of these reported results have been made.
As of March 31, 1999, the Company's portfolio consisted of 124 properties
comprising more than 32.0 million square feet, including eight properties
under development totaling approximately 1.6 million square feet. The overall
occupancy rate for the properties in service as of March 31, 1999 was 98.2%.
Properties under development which were placed in service during the first
quarter include:
-- One and Two Reston Overlook, an approximately 444,000-square-foot Class
A office complex located in Reston, Va. Building I is a 12-story,
323,000-square-foot building built-to-suit TRW, a multinational
information technology company, on January 15, 1999. Building II is a
six-story, 133,000-square-foot building that is 100% leased and 65%
occupied with the remaining tenants to take occupancy by June 1, 1999.
The Company has a 25% interest in these properties.
-- The Residence Inn at Cambridge Center Six, an approximately 187,500-
square-foot hotel with 221 suites located in Cambridge, Mass., on
February 1, 1999. The Residence Inn is managed by Marriott and is
targeted toward extended hotel stays.
-- 1301 New York Avenue, an approximately 178,000-square-foot Class A
office building in Washington, D.C., on February 13, 1999. The
property was acquired on August 14, 1998 and has undergone extensive
renovations. The building is currently 100% leased to the General
Services Administration.
Additional highlights of the first quarter include:
-- Signed binding agreement giving the Company the right to acquire,
between now and January 2001, the leasehold interest in the remaining
two office development sites in New York City's Times Square for a
total purchase price of $312.25 million. Affiliates of the Prudential
Insurance Company of America, the sellers, will retain the right to
become 33.33% equity participants in the development ventures by
contributing, upon an election to participate, their proportionate
share of the total project equity.
-- Completion of the acquisition of Embarcadero Center, an approximately
4.0 million-square-foot mixed-use urban center located in San
Francisco, Calif., on February 10, 1999. The total acquisition
price was approximately $1.2 billion.
-- Issuance of 2,000,000 shares of the Company's Series A Convertible
Redeemable Preferred Stock for $100.0 million on February 10, 1999 in
connection with the acquisition of Embarcadero Center.
-- Acquisition of Sumner Square, an approximately 204,000-square-foot
office-complex located in Washington, D.C., on March 26, 1999 for
approximately $32.6 million, from related parties.
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 for per share amounts)
Three months ended
March 31,
1999 1998
Revenue
Rental:
Base rent $151,609 $79,270
Recoveries from tenants 17,414 9,557
Parking and other 10,924 1,111
Total rental revenue 179,947 89,938
Development and management services 4,047 1,776
Interest and other 3,646 3,889
Total revenue 187,640 95,603
Expenses
Rental:
Operating 33,576 12,999
Real estate taxes 23,774 13,531
General and administrative 6,610 4,821
Interest 50,459 24,929
Depreciation and amortization 27,794 13,095
Total expenses 142,213 69,375
Income before minority interests and
joint venture income 45,427 26,228
Minority interest in property partnership (4,155) (123)
Income from unconsolidated joint venture 213 --
Income before minority interest in
Operating Partnership 41,485 26,105
Minority interest in Operating Partnership (15,712) (6,474)
Net income 25,773 19,631
Preferred dividend (839) --
Net income available to common shareholders $24,934 $19,631
Basic earnings per share:
Net income available to common shareholders $0.39 $0.36
Weighted average number of common
shares outstanding 63,534 54,283
Diluted earnings per share:
Net income $0.39 $0.36
Weighted average number of common and common
equivalent shares outstanding 64,078 54,902
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts)
March 31, December 31,
1999 1998
ASSETS (unaudited)
Real estate: $5,018,949 $4,917,193
Less: accumulated depreciation (383,779) (357,384)
Total real estate 4,635,170 4,559,809
Cash and cash equivalents 33,597 12,166
Notes receivable -- 420,143
Escrows 23,365 19,014
Tenant and other receivables, net 42,188 40,830
Accrued rental income, net 68,615 64,251
Deferred charges, net 47,893 46,029
Prepaid expenses and other assets 25,166 26,058
Investments in joint ventures 59,664 46,787
Total assets $4,935,658 $5,235,087
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,758,755 $2,653,581
Notes payable -- 420,143
Unsecured line of credit 252,000 15,000
Accounts payable and accrued expenses 51,282 33,638
Dividends payable 43,342 40,494
Accrued interest payable 12,028 7,307
Other liabilities 22,688 37,209
Total liabilities 3,140,095 3,207,372
Commitments and contingencies -- --
Minority interests 768,119 1,079,234
Preferred stock, $.01 par value, 50,000,000 shares
authorized, 2,000,000 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, 63,540,106 and 63,527,819 issued and
outstanding, respectively 635 635
Additional paid-in capital 936,745 955,711
Dividends in excess of earnings (9,936) (7,865)
Total stockholders' equity 927,444 948,481
Total liabilities and stockholders' equity $4,935,658 $5,235,087
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended
March 31,
1999 1998
Income before minority interests $45,427 $26,228
Add:
Real estate depreciation and amortization 27,549 12,944
Income from unconsolidated joint venture 213 --
Less:
Minority property partnership's share
of Funds from Operations (3,163) (144)
Preferred dividends and distributions (7,212) --
Funds from operations $62,814 $39,028
Funds from operations available to common
shareholders $45,697 $29,349
Weighted average shares outstanding - basic 63,534 54,283
Per share - basic $0.72 $0.54
Weighted average shares outstanding - diluted 75,862 54,902
Per share - diluted $0.70 $0.53
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
March 31, December 31,
1999 1998
Greater Boston 98.4% 97.0%
Greater Washington, D.C. 97.7% 98.5%
Midtown Manhattan 99.9% 99.9%
Baltimore, MD 100.0% 99.8%
Richmond, VA 99.1% 98.8%
Princeton/East Brunswick, NJ 99.5% 98.7%
Greater San Francisco 96.5% 98.5%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.2% 98.4%
Occupancy by Type
March 31, December 31,
1999 1998
Class A Office Portfolio 98.5% 98.8%
R&D Portfolio 99.1% 99.2%
Industrial Portfolio 89.3% 89.3%
Total Portfolio 98.2% 98.4%
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, Inc.,
617-859-2600; or General Info., Marianne Stewart, 212-661-8030,
Analysts, Claire Koeneman, 312-266-7800, or Media, Judith
Sylk-Siegel, 212-661-8030, 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. Also see
http://www.frbinc.com
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