BOSTON, July 28 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the second quarter and the six months ended June 30,
1998.
Fund from Operations (FFO) for the quarter ended June 30, 1998 were
approximately $38.9 million, or $0.63 per share basic and diluted, compared to
FFO on a pro forma basis of approximately $19.9 million, or $0.51 per share
basic and diluted for the quarter ended June 30, 1997. The weighted average
number of basic and diluted shares outstanding totaled 61,694,041 and
62,284,095, respectively, for the quarter ended June 30, 1998 and 38,693,541
and 38,830,779, respectively, for the same quarter last year on a pro forma
basis. FFO for the six months ended June 30, 1998 were approximately $68.3
million, or $1.17 per share basic and $1.16 per share diluted, compared to FFO
on a pro forma basis of approximately $35.8 million, or $0.93 per share basic
and $0.92 per share diluted, for the six months ended June 30, 1997.
Revenues were approximately $108.0 million for the quarter and
$203.6 million for the six months ended June 30, 1998, compared to pro forma
revenues of $60.6 million and $114.8 million for the same periods in 1997.
Net income for the quarter was approximately $29.9 million and $49.6 million
for the six months ended June 30, 1998, compared to $13.5 million and $22.7
million, respectively, on a pro forma basis for the same periods in 1997. Net
income per share for the quarter was $0.48 per share basic and diluted,
compared to $0.35 per share on a pro forma basis last year, and was $0.85 per
share basic and diluted for the six months ended June 30, 1998, compared to
$0.59 per share on a pro forma basis last year.
The reported results are unaudited and there can be no assurance that the
results will not vary from the final audited information for the year ending
December 31, 1998. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
Pro forma results are presented as if the Company's initial public offering of
common stock and related formation transactions (which was completed on
June 23, 1997) had occurred at the beginning of the relevant period. As of
June 30, 1998, the Company's portfolio consisted of 108 properties comprising
more than 20 million square feet, including 10 properties under development
totaling approximately 2 million square feet. The overall occupancy rate for
the properties in service as of June 30, 1998 was 98.5%.
The Company completed the following transactions during the second quarter
that will enhance its development pipeline in the respective markets.
-- Acquisition of land known as Tower Oaks in Rockville, Md., that can
support approximately 1.1 million square feet of office space, for
approximately $24.0 million on May 28, 1998.
-- Acquisition of land known as New Dominion Park in Herndon, Va., that
can support approximately 450,000 square feet of office space, for
approximately $6.7 million on June 30, 1998.
Additional highlights of the second quarter, as previously announced,
include:
-- Letter of intent to acquire the six-building portfolio known as
Embarcadero Center in San Francisco, Calif., consisting of 3.76 million
square feet in six Class A buildings, for $1.22 billion on May 8, 1998.
-- Acquisition of Decoverly III, a 77,040-square-foot Class A office
building in Rockville, Md., in the same office park with another recent
acquisition, on June 1, 1998 for approximately $11.1 million.
-- Acquisition of 7450 Boston Boulevard, a 60,537-square-foot Class A
office building in Springfield, Va., site of an office park in which
the Company owns 12 buildings, on June 16, 1998 for approximately
$5.8 million.
-- Acquisition of the leasehold interest of University Place, a
196,000-square-foot Class A office building located near Harvard Square
in Cambridge, Mass., for approximately $37.0 million on June 25, 1998.
-- Acquisition of a portfolio of Class A office buildings, known as
Carnegie Center and Tower One, totaling approximately 1.37 million
square feet located in Princeton and East Brunswick, N.J.,
respectively, plus the right to act as exclusive developer for more
than 2 million square feet to be built in Carnegie Center and the
option to acquire additional sites for approximately $284.0 million,
including $8.0 million in deposits relating to two additional buildings
to be acquired upon completion in the fall, on June 30, 1998.
Transactions announced since the quarter ended June 30, 1998 include:
-- Completion of the acquisition of the Prudential Center Complex
in Boston, Mass., for $519.0 million for the commercial property and
$27.0 million for the development rights on July 2, 1998.
-- Acquisition of Metropolitan Square, a Class A, fully leased
585,000-square-foot office complex in midtown Washington, D.C., for
approximately $175.0 million on July 10, 1998.
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; Baltimore, Md.; Princeton/East
Brunswick, N.J.; and Richmond, Va., 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 or reasons, including a failure to reach agreement
with the selling party regarding the acquisition price or other terms of a
contribution or acquisition agreement.
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited and in thousands, except per share amounts)
Three months ended Six months ended
June 30, June 30,
1998 1997 1998 1997
(pro forma) (pro forma)
REVENUE
Rental:
Base rent $87,806 $50,605 $167,075 $96,960
Recoveries from
tenants 9,805 5,306 19,362 10,856
Parking and other 1,595 2,079 2,706 2,519
Total rental
revenue 99,206 57,990 189,143 110,335
Development and
management services 4,383 1,754 6,159 3,333
Interest and other 4,452 891 8,341 1,163
Total revenue 108,041 60,635 203,643 114,831
EXPENSES
Rental:
Operating 13,794 7,128 26,793 14,279
Real estate taxes 13,609 7,889 27,140 15,512
General and
administrative 5,800 2,915 10,621 5,791
Interest 23,814 14,278 48,743 28,078
Depreciation and
amortization 16,594 9,232 29,689 18,246
Total expenses 73,611 41,442 142,986 81,906
Income before minority
interests 34,430 19,193 60,657 32,925
Minority interest in
property partnership (106) (117) (229) (243)
Income before minority
interest in Operating
Partnership 34,324 19,076 60,428 32,682
Minority interest in
Operating Partnership (7,967) (5,597) (14,440) (9,965)
Income before
extraordinary gain 26,357 13,479 45,988 22,717
Extraordinary gain on
early debt
extinguishments, net 3,564 -- 3,564 --
Net income $29,921 $13,479 $49,552 $22,717
Basic earnings per share:
Income before
extraordinary gain $0.42 $0.35 $0.79 $0.59
Extraordinary gain, net 0.06 -- 0.06 --
Net income $0.48 $0.35 $0.85 $0.59
Weighted average number
of common shares
outstanding 61,694 38,694 58,009 38,694
Diluted earnings per share:
Income before
extraordinary gain $0.42 $0.35 $0.79 $0.59
Extraordinary gain, net 0.06 -- 0.06 --
Net income $0.48 $0.35 $0.85 $0.59
Weighted average number
of common shares
outstanding 62,284 38,831 58,613 38,831
BOSTON PROPERTIES, INC.
CONSOLIDATED AND COMBINED BALANCE SHEETS
(unaudited and in thousands)
June 30, 1998 Dec. 31, 1997
ASSETS
Real estate: $2,675,418 $1,796,500
Less: accumulated
depreciation (319,414) (294,218)
Total real estate 2,356,004 1,502,282
Cash and cash equivalents 108,962 17,560
Escrows 17,833 14,178
Tenant and other
receivables, net 24,767 24,458
Accrued rental income, net 62,773 55,190
Deferred charges, net 36,949 35,485
Prepaid expenses and
other assets 22,921 20,225
Investment in joint ventures 7,674 3,143
Total assets $2,637,883 $1,672,521
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable 1,327,575 1,099,253
Unsecured line of credit -- 233,000
Accounts payable
and accrued expenses 62,120 23,822
Dividends payable -- 22,539
Accrued interest payable 3,276 6,581
Other liabilities 17,395 11,642
Total liabilities 1,410,366 1,396,837
Commitments and contingencies -- --
Minority interest in
Operating Partnership 352,790 100,636
Stockholders' equity:
Preferred stock, $.01 par value,
50,000,000 shares authorized,
none issued or outstanding -- --
Excess stock, $.01 par value,
150,000,000 shares authorized,
none issued or outstanding -- --
Common stock, $.01 par value,
250,000,000 shares authorized,
61,694,041 issued and
outstanding 617 387
Additional paid-in capital 847,090 172,347
Earnings in excess of dividends 27,020 2,314
Total stockholders' equity 874,727 175,048
Total liabilities and
stockholders' equity $2,637,883 $1,672,521
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(Unaudited)
Three Months Ended
Actual Pro forma
June 30, June 30, % Change
1998 1997
Income from operations
before minority interests $34,430 $19,193 79.39%
Add:
Real estate depreciation
and amortization 16,415 9,104 80.31%
Less:
Minority property
partnership's share of
Funds from Operations (138) (103) 3.98%
Funds from Operations $50,707 $28,194 79.85%
Company's share (1) $38,938 $19,922 95.45%
Funds from Operations per
share - basic $0.63 $0.51 22.59%
Weighted average shares
outstanding - basic 61,694 38,694 59.44%
Funds from Operations per
share - diluted $0.63 $0.51 21.86%
Weighted average shares
outstanding - diluted 62,284 38,831 60.40%
(1) Based on weighted average shares for the quarter. Company's share
for the quarter ended 6/30/98 was 76.79% and 70.66% for the pro
forma quarter ended 6/30/97.
Six Months Ended
Actual Pro forma
June 30, June 30, % Change
1998 1997
Income from operations
before minority interests $60,657 $32,925 84.23%
Add:
Real estate depreciation
and amortization 29,359 17,989 63.21%
Less:
Minority property
partnership's share of
Funds from Operations (282) (251) 12.35%
Funds from Operations $89,734 $50,663 77.12%
Company's share $68,287 $35,798 90.75%
Funds from Operations per
share - basic $1.17 $0.93 26.46%
Weighted average shares
outstanding - basic 58,137 38,694 50.25%
Funds from Operations
per share - diluted $1.16 $0.92 26.10%
Weighted average shares
outstanding - diluted 58,741 38,831 51.27%
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
(Unaudited)
Occupancy by Location
June 30, 1998 Dec. 31, 1997
Greater Boston, MA 98.49% 98.32%
Greater Washington, DC 98.56% 97.34%
Midtown Manhattan, NY 97.76% 95.23%
Baltimore, MD 99.67% 98.04%
Richmond, VA 97.38% n/a
Princeton/East Brunswick, NJ 100.00% n/a
Greater San Francisco, CA 98.75% 98.37%
Bucks County, PA 100.00% 100.00%
Total Portfolio 98.52% 97.20%
Occupancy by Type
Class A Office Portfolio 98.90% 97.60%
R&D Portfolio 98.20% 97.30%
Industrial Portfolio 95.00% 78.20%
Total Portfolio 98.52% 97.20%
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 Marianne Stewart, General Info., 212-661-8030,
Claire Koeneman, Analyst, 312-266-7800, or Judith Sylk-Siegel,
Media, 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.
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