Reports FFO per share of $0.83
BOSTON, July 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the second quarter ended June 30, 2000.
Funds from Operations (FFO) for the quarter ended June 30, 2000 were
$59.3 million, or $0.87 per share basic and $0.83 per share diluted, compared
to FFO of $48.7 million, or $0.74 per share basic and $0.72 per share diluted
for the quarter ended June 30, 1999. This represents a 15.3% year to year
increase in diluted FFO per share. The weighted average number of basic and
diluted shares outstanding totaled 67,991,227 and 82,582,547, respectively,
for the quarter ended June 30, 2000 and 65,533,924 and 79,329,377,
respectively, for the same quarter last year.
FFO for the six months ended June 30, 2000 were $113.8 million, or
$1.67 per share basic and $1.61 per share diluted, compared to FFO of
$94.3 million, or $1.46 per share basic and $1.42 per share diluted for the
six months ended June 30, 1999. The weighted average number of basic and
diluted shares outstanding totaled 67,972,726 and 81,870,560, respectively,
for the six months ended June 30, 2000 and 64,539,307 and 77,562,965,
respectively, for the same period last year.
Revenues were $217.3 million for the quarter and $427.5 million for the
six months ended June 30, 2000, compared to revenues of $191.6 million and
$379.3 million for the same periods in 1999. Net income available to common
shareholders for the quarter and six months ended June 30, 2000 was $34.9
million and $65.9 million, respectively, compared to $27.2 million and $52.2
million for the same periods in 1999. Net income per share available to
common shareholders for the quarter and six months ended June 30, 2000 was
$0.51 per share basic and $0.50 per share diluted and $0.97 per share basic
and $0.96 per share diluted, respectively, compared to $0.42 per share basic
and $0.41 per share diluted and $0.81 per share basic and $0.80 per share
diluted for the same periods 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
June 30, 2000. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of June 30, 2000, the Company's portfolio consisted of 142 properties
comprising more than 36.3 million square feet, including thirteen properties
under development totaling 3.8 million square feet. The overall occupancy
rate for the properties in service as of June 30, 2000 was 98.5%.
Additional highlights of the second quarter include:
-- The refinancing of the mortgage loan on Ten Cambridge Center and the
Cambridge Center North Garage on April 6, 2000 which consisted of
replacing the $40.0 million mortgage loan with a $36.0 million loan and
removing the Cambridge Center 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 on April 13, 2000. 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 on April
20, 2000 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 on April 24, 2000. 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%.
-- On May 3, 2000, the Board of Directors of the Company declared a second
quarter common dividend of $0.53 per share, a 17.8% increase from the
previous quarter.
-- The acquisition of a 49% interest in Metropolitan Square, a 582,194
square foot Class A office building in Washington, D.C., and a 75%
interest in 140 Kendrick Street, a 381,000 square foot build-to-suit
development property in Needham, Massachusetts, by the New York State
Common Retirement Fund on May 12, 2000 for approximately $46.7 million
and the assumption of $88.2 million of debt. These properties were
previously 100% owned by Boston Properties.
-- Signing of an agreement with Captivate Network, Inc. ("Captivate") in
which Captivate will provide a network of video displays in building
elevators which will deliver subscriber messaging, commercial
advertising, news and other information to at least 26 Class A office
buildings comprising more than 14.4 million square feet. The agreement
provides for Boston Properties to participate in any revenues Captivate
generates resulting from Boston Properties' buildings and for Boston
Properties to receive 605,555 warrants for shares of common stock in
Captivate.
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
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
(unaudited and in thousands, except per share amounts)
Revenue
Rental:
Base rent $177,953 $158,070 $348,290 $309,679
Recoveries from
tenants 22,734 17,252 46,070 34,666
Parking and other 12,289 12,087 25,297 23,011
Total rental
revenue 212,976 187,409 419,657 367,356
Development and
management services 2,876 3,611 5,739 7,658
Interest and other 1,407 620 2,117 4,266
Total revenue 217,259 191,640 427,513 379,280
Expenses
Operating 64,035 60,306 129,212 117,656
General and
administrative 8,589 7,352 15,997 13,962
Interest 56,243 49,219 111,458 99,678
Depreciation and
amortization 32,395 29,443 64,626 57,237
Total expenses 161,262 146,320 321,293 288,533
Income before minority
interests and
joint venture income 55,997 45,320 106,220 90,747
Minority interests in
property partnerships (240) (139) (436) (4,294)
Income from
unconsolidated joint
ventures 662 229 807 442
Income before minority
interest in Operating
Partnership 56,419 45,410 106,591 86,895
Minority interest in
Operating
Partnership (20,193) (16,505) (37,745) (32,217)
Income before gain on
sale of real estate 36,226 28,905 68,846 54,678
Gain on sale of real
estate, net 297 - 297 -
Net income before
preferred dividend 36,523 28,905 69,143 54,678
Preferred dividend (1,643) (1,682) (3,286) (2,521)
Net income available
to common
shareholders $34,880 $27,223 $65,857 $52,157
Basic earnings per share:
Net income available to
common shareholders $0.51 $0.42 $0.97 $0.81
Weighted average
number of common
shares outstanding 67,991 65,534 67,973 64,539
Diluted earnings per share:
Net income available
to common
shareholders $0.50 $0.41 $0.96 $0.80
Weighted average number
of common and common
equivalent shares
outstanding 69,582 66,337 69,157 65,161
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
2000 1999
(unaudited)
(in thousands, except share amounts)
ASSETS
Real estate: $5,701,704 $5,609,424
Less: accumulated depreciation (525,201) (470,591)
Total real estate 5,176,503 5,138,833
Cash and cash equivalents 6,319 12,035
Escrows 33,025 40,254
Investments in securities 28,283 14,460
Tenant and other receivables, net 32,340 28,362
Accrued rental income, net 84,425 82,228
Deferred charges, net 69,599 53,733
Prepaid expenses and other assets 39,074 28,452
Investments in joint ventures 69,486 36,415
Total assets $5,539,054 $5,434,772
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $3,157,068 $2,955,584
Unsecured line of credit 238,000 366,000
Accounts payable and accrued expenses 53,922 66,780
Dividends and distributions payable 59,812 50,114
Accrued interest payable 6,127 8,486
Other liabilities 52,497 48,282
Total liabilities 3,567,426 3,495,246
Commitments and contingencies - -
Minority interests 797,451 781,962
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,
68,026,798 and 67,910,434 issued
and outstanding in 2000 and
1999, respectively 680 679
Additional paid-in capital 1,076,593 1,067,778
Dividends in excess of earnings (11,670) (10,893)
Unearned compensation (954) -
Accumulated other comprehensive income 9,528 -
Total stockholders' equity 1,074,177 1,057,564
Total liabilities and
stockholders' equity $5,539,054 $5,434,772
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended Six months ended
June 30, June 30,
2000 1999 2000 1999
Income before minority
interests and joint
venture income $55,997 $45,320 $106,220 $90,747
Add:
Real estate
depreciation and
amortization 32,497 29,238 64,549 56,787
Income from
unconsolidated
joint ventures 662 229 807 442
Less:
Minority property
partnership's share of
Funds from Operations (266) (128) (490) (3,291)
Preferred dividends
and distributions (8,250) (8,293) (16,500) (15,505)
Funds from operations $80,640 $66,366 $154,586 $129,180
Funds from operations
available to common
shareholders $59,347 $48,673 $113,767 $94,343
Weighted average
shares outstanding
- basic 67,991 65,534 67,973 64,539
Per share - basic $0.87 $0.74 $1.67 $1.46
Weighted average
shares outstanding
- diluted 82,583 79,329 81,871 77,563
Per share - diluted $0.83 $0.72 $1.61 $1.42
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
June 30, 2000 December 31, 1999
Greater Boston 97.8% 96.7%
Greater Washington, D.C. 97.2% 96.4%
Midtown Manhattan 100.0% 97.8%
Baltimore, MD 99.8% 99.7%
Richmond, VA 100.0% 98.0%
Princeton/East Brunswick, NJ 99.8% 98.9%
Greater San Francisco 99.1% 96.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.5% 97.1%
Occupancy by Type
June 30, 2000 December 31, 1999
Class A Office Portfolio 99.4% 97.7%
R&D Portfolio 92.0% 93.0%
Industrial Portfolio 90.3% 90.4%
Total Portfolio 98.5% 97.1%
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, or 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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