BOSTON, Mass., July 27 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP)
today reported results for the second quarter ended June 30, 1999.
Funds from Operations (FFO) for the quarter ended June 30, 1999 were
approximately $48.7 million, or $0.74 per share basic and $0.72 per share
diluted, compared to FFO of approximately $38.9 million, or $0.63 per share
basic and diluted, for the quarter ended June 30, 1998. The weighted average
number of basic and diluted shares outstanding totaled 65,533,924 and
79,329,377, respectively, for the quarter ended June 30, 1999 and
61,694,041 and 62,284,095, respectively, for the same quarter last year.
FFO for the six months ended June 30, 1999 were approximately
$94.3 million, or $1.46 per share basic and $1.42 per share diluted, compared
to FFO of approximately $68.3 million, or $1.18 per share basic and $1.16 per
share diluted, for the six months ended June 30, 1998. The weighted average
number of basic and diluted shares outstanding totaled 64,539,307 and
77,562,965, respectively, for the six months ended June 30, 1999 and
58,009,458, and 58,613,375, respectively, for the same period last year.
Revenues were approximately $191.6 million for the quarter and
$379.3 million for the six months ended June 30, 1999, compared to revenues of
approximately $108.0 million and $203.6 million for the same periods in
1998. Net income available to common shareholders for the quarter was
approximately $27.2 million and $52.2 million for the six months ended June
30, 1999, compared to $29.9 million and $49.6 million for the same periods in
1998. Income before extraordinary gain per share for the quarter was
$0.42 per share basic and $0.41 per share diluted, compared to $0.42 per share
basic and diluted last year. Income before extraordinary gain per share for
the six months ended June 30, 1999 was $0.81 per share basic and $0.80 per
share diluted, compared to $0.79 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 June
30, 1999. In the opinion of management, all adjustments considered necessary
for a fair presentation of these reported results have been made.
As of June 30, 1999, the Company's portfolio consisted of 127 properties
comprising more than 33.4 million square feet, including eight properties
under development totaling approximately 2.3 million square feet. The overall
occupancy rate for the properties in service as of June 30, 1999 was
97.6%.
Properties under development which were placed in service during the
second quarter include:
-- The Arboretum, a 95,584-square-foot Class A office building located in
Reston, Va., which is currently 100% leased.
-- Eight Cambridge Center, a 177,226-square-foot Class A office building
located in Cambridge, Mass., which is currently 100% leased.
-- 200 West Street, a 248,341-square-foot office building located in
Waltham, Mass., which is currently 95% leased.
Additional highlights of the second quarter include:
-- Acquisition of 510 Carnegie Center, a 234,160-square-foot Class A
office building in Princeton, N. J., for approximately $48.0 million,
on April 30, 1999.
-- Issuance of 4,000,000 shares of the Company's Common Stock resulting in
net proceeds of approximately $141.0 million, on May 20, 1999.
-- Acquisition of the remaining 50% interest in the development rights
associated with 111 Huntington Avenue, a parcel of land located at the
Prudential Center in Boston, Mass., which will support an 890,000-
square-foot Class A office building, on May 24, 1999. Construction
commenced on April 27, 1999.
Transactions completed since the quarter ended June 30, 1999 include:
-- Closing of mortgage financing secured by Eight Cambridge Center in
Cambridge, Mass., in the amount of $29.0 million at a rate of 7.73%,
maturing in July 2010, on July 7, 1999.
-- Acquisition of 206 Carnegie Center, a 161,763-square-foot Class A
office building in Princeton, N. J., for approximately $27.0 million,
on July 9, 1999.
-- Closing of mortgage financing secured by University Place in Cambridge,
Mass., in the amount of $26.0 million at a rate of 6.94%, maturing in
August 2021, on July 26, 1999.
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 office, industrial and hotel
properties. The Company is one of the largest owners and developers of office
properties in the United States, concentrated in the Northeast Corridor from
Virginia to Greater Boston and in downtown 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 . Also see
http://www.frbinc.com .
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 Six months ended
June 30, June 30, June 30, June 30,
1999 1998 1999 1998
Revenue
Rental:
Base rent $158,070 $87,806 $309,679 $167,075
Recoveries from
tenants 17,252 9,805 34,666 19,362
Parking and other 12,087 1,595 23,011 2,706
Total rental revenue 187,409 99,206 367,356 189,143
Development and management
services 3,611 4,383 7,658 6,159
Interest and other 620 4,452 4,266 8,341
Total revenue 191,640 108,041 379,280 203,643
Expenses
Operating 60,306 27,403 117,656 53,933
General and administrative 7,352 5,800 13,962 10,621
Interest 49,219 23,814 99,678 48,743
Depreciation and
amortization 29,443 16,594 57,237 29,689
Total expenses 146,320 73,611 288,533 142,986
Income before minority
interests and joint
venture income 45,320 34,430 90,747 60,657
Minority interests in
property partnerships (139) (106) (4,294) (229)
Income from unconsolidated
joint venture 229 -- 442 --
Income before minority
interest in Operating
Partnership 45,410 34,324 86,895 60,428
Minority interest in
Operating Partnership (16,505) (7,967) (32,217) (14,440)
Income before preferred
dividend 28,905 26,357 54,678 45,988
Preferred dividend (1,682) -- (2,521) --
Income before extraordinary
gain 27,223 26,357 52,157 45,988
Extraordinary gain, net -- 3,564 -- 3,564
Net income available to
common shareholders $27,223 $29,921 $52,157 $49,552
Basic earnings per share:
Income before extraordinary
gain $0.42 $0.42 $0.81 $0.79
Extraordinary gain, net -- 0.06 -- 0.06
Net income available to
common shareholders $0.42 $0.48 $0.81 $0.85
Weighted average number
of common shares
outstanding 65,534 61,694 64,539 58,009
Diluted earnings per share:
Income before extraordinary
gain $0.41 $0.42 $0.80 $0.79
Extraordinary gain, net -- 0.06 -- 0.06
Net income available to
common shareholders $0.41 $0.48 $0.80 $0.85
Weighted average number of
common and common
equivalent shares
outstanding 66,337 62,284 65,161 58,613
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
1999 1998
(unaudited)
(in thousands, except share amounts)
ASSETS
Real estate: $5,127,469 $4,917,193
Less: accumulated depreciation (411,705) (357,384)
Total real estate 4,715,764 4,559,809
Cash and cash equivalents 32,225 12,166
Notes receivable -- 420,143
Escrows 24,082 19,014
Tenant and other receivables, net 53,059 40,830
Accrued rental income, net 72,535 64,251
Deferred charges, net 50,946 46,029
Prepaid expenses and other assets 28,142 26,058
Investments in joint ventures 42,077 46,787
Total assets $5,018,830 $5,235,087
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,799,507 $2,653,581
Notes payable -- 420,143
Unsecured line of credit 142,000 15,000
Accounts payable and accrued expenses 61,860 42,897
Dividends payable 45,559 40,494
Accrued interest payable 7,837 7,307
Other liabilities 22,946 27,950
Total liabilities 3,079,709 3,207,372
Commitments and contingencies -- --
Minority interests 781,999 1,079,234
Series A Convertible Redeemable Preferred
Stock, liquidation preference
$50.00 per share, 2,000,000 shares
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,
67,893,386 and 63,527,819 issued and
outstanding in 1999 and 1998,
respectively 678 635
Additional paid-in capital 1,068,016 955,711
Dividends in excess of earnings (11,572) (7,865)
Total stockholders' equity 1,057,122 948,481
Total liabilities and stockholders'
equity $5,018,830 $5,235,087
BOSTON PROPERTIES, INC.
Funds from Operations
(unaudited and in thousands, except for per share amounts)
Three months ended Six months ended
June 30, June 30,
1999 1998 1999 1998
Income before minority
interests $45,320 $34,430 $90,747 $60,657
Add:
Real estate depreciation
and amortization 29,238 16,415 56,787 29,359
Income from unconsolidated
joint venture 229 -- 442 --
Less:
Minority property partnership's
share of Funds from
Operations (128) (138) (3,291) (282)
Preferred dividends and
distributions (8,293) -- (15,505) --
Funds from operations $66,366 $50,707 $129,180 $89,734
Funds from operations
available to common
shareholders $48,673 $38,938 $94,343 $68,287
Weighted average shares
outstanding - basic 65,534 61,694 64,539 58,009
Per share - basic $0.74 $0.63 $1.46 $1.18
Weighted average shares
outstanding - diluted 79,329 62,284 77,563 58,613
Per share - diluted $0.72 $0.63 $1.42 $1.16
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
Occupancy by Location
June 30, 1999 December 31, 1998
Greater Boston 96.9% 97.0%
Greater Washington, D.C. 96.1% 98.5%
Midtown Manhattan 99.9% 99.9%
Baltimore, MD 100.0% 99.8%
Richmond, VA 96.2% 98.8%
Princeton/East Brunswick, NJ 99.8% 98.7%
Greater San Francisco 98.0% 98.5%
Bucks County, PA 100.0% 100.0%
Total Portfolio 97.6% 98.4%
Occupancy by Type
June 30, 1999 December 31, 1998
Class A Office Portfolio 98.0% 98.8%
R&D Portfolio 96.4% 99.2%
Industrial Portfolio 90.4% 89.3%
Total Portfolio 97.6% 98.4%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Elaine M. Quinlan, Director of Investor
Relations of Boston Properties, Inc., 617-236-3300; 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
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