Reports FFO per share of $0.85
BOSTON, Oct. 16 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the third quarter ended September 30, 2000.
Funds from Operations (FFO) for the quarter ended September 30, 2000 were
$61.5 million, or $0.90 per share basic and $0.85 per share diluted, compared
to FFO of $50.2 million, or $0.74 per share basic and $0.72 per share diluted
for the quarter ended September 30, 1999. This represents an 18.1% year to
year increase in diluted FFO per share. The weighted average number of basic
and diluted shares outstanding totaled 68,751,768 and 83,657,357,
respectively, for the quarter ended September 30, 2000 and 67,900,734 and
81,485,166, respectively, for the same quarter last year.
FFO for the nine months ended September 30, 2000 was $175.5 million, or
$2.56 per share basic and $2.46 per share diluted, compared to FFO of
$144.6 million, or $2.20 per share basic and $2.15 per share diluted for the
nine months ended September 30, 1999. The weighted average number of basic
and diluted shares outstanding totaled 68,568,410 and 82,599,673,
respectively, for the nine months ended September 30, 2000 and 65,672,095 and
76,674,436, respectively, for the same period last year.
Revenue were $223.3 million for the quarter and $650.8 million for the
nine months ended September 30, 2000, compared to revenue of $202.1 million
and $581.4 million for the same periods in 1999. Net income available to
common shareholders for the quarter and nine months ended September 30, 2000
was $36.5 million and $103.3 million, respectively, compared to $27.4 million
and $79.6 million for the same periods in 1999. Net income per share
available to common shareholders for the quarter and nine months ended
September 30, 2000 were $0.53 per share basic and $0.50 per share diluted and
$1.51 per share basic and $1.48 per share diluted, respectively, compared to
$0.40 per share basic and diluted and $1.21 per share basic and $1.20 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
September 30, 2000. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of September 30, 2000, the Company's portfolio consisted of 145
properties comprising more than 37.2 million square feet, including 18
properties currently under development totaling 4.6 million square feet. The
overall occupancy rate for the properties in service as of September 30, 2000
was 98.5%.
Additional highlights of the third quarter include:
-- The closing of construction financing on August 25, 2000 totaling
$32.25 million collateralized by the Quorum Office Park development
project in Chelmsford, Massachusetts. Such financing matures in August
2003 and bears interest at a rate of LIBOR + 1.65%.
-- The acquisition of a 35% interest in 265 Franklin Street, a 326,714
square foot Class A office building in Boston, Massachusetts, on
September 13, 2000 for approximately $34.3 million. The remaining 65%
interest is owned by our joint venture partner, the New York State
Common Retirement Fund.
-- On September 18, 2000, the Board of Directors of the Company declared a
dividend of $0.53 per share for the period from July 1, 2000 through
September 30, 2000, payable on October 27, 2000 to shareholders of
record on September 29, 2000.
-- The amendment of our unsecured line of credit on September 20, 2000
with Fleet National Bank to allow us to borrow up to $605.0 million.
-- The refinancing of mortgage loans on September 28, 2000 which consisted
of replacing $52.3 million collateralized by 202, 212 and 214 Carnegie
Center with $63.0 million of loans collateralized by 202, 206 and 214
Carnegie Center. Such financing bears interest at a rate equal to
8.13% and matures in October 2010.
-- The disposition of 910 and 930 Clopper Road in Gaithersburg, Maryland,
two properties supporting both office and technical uses totaling
240,596 square feet, on September 29, 2000 for approximately
$24.1 million.
Transactions completed subsequent to September 30, 2000:
-- The refinancing of the mortgage loan on 601 and 651 Gateway Boulevard
on October 2, 2000 which consisted of replacing the $75.0 million
mortgage loan with a $90.0 million loan. The new financing bears
interest at a rate equal to 8.40% and matures in October 2010.
-- The closing on October 6, 2000 of a 50% joint venture with an affiliate
of Westbrook which was formed to develop One and Two Discovery Square,
two Class A office buildings in Reston, Virginia totaling 362,868
square feet.
-- The announcement on October 11, 2000 of a 15,000,000 share public
common stock offering with proceeds to be used to fund development
activities and paydown the unsecured line of credit.
-- The closing of bond financing on October 12, 2000 totaling
$57.61 million collateralized by the New Dominion Tech Park, Building
One development project in Herndon, Virginia. Such financing matures
in October 2020 and bears interest at a rate of 7.58%. The proceeds of
$57.61 million will be funded into an escrow and held until the New
Dominion Tech Park, Building One is completed, which is estimated to be
in December 2000. At that time, the current construction loan will be
paid off and the remaining proceeds will be available to Boston
Properties.
-- The disposition of 1950 Stanford Court, a single story industrial
building totaling 53,250 square feet, and an adjacent parcel of land
totaling approximately 2 acres in Landover, MD, on October 13, 2000 for
approximately $2.2 million.
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
(unaudited and in thousands)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Revenue
Rental:
Base rent $183,749 $166,582 $532,039 $476,261
Recoveries
from tenants 22,886 19,212 68,956 53,878
Parking and other 12,798 11,261 38,095 34,272
Total rental
revenue 219,433 197,055 639,090 564,411
Development and
management services 2,693 3,706 8,432 11,364
Interest and other 1,187 1,376 3,304 5,642
Total revenue 223,313 202,137 650,826 581,417
Expenses
Operating 68,154 66,665 197,366 184,321
General and
administrative 9,871 7,383 25,868 21,345
Interest 54,752 51,768 166,210 151,446
Depreciation and
amortization 32,436 31,078 97,062 88,315
Total expenses 165,213 156,894 486,506 445,427
Income before minority
interests and joint
venture income 58,100 45,243 164,320 135,990
Minority interest
in property
partnership (245) (179) (681) (4,473)
Income from
unconsolidated joint
ventures 549 206 1,356 648
Income before minority
interest in Operating
Partnership 58,404 45,270 164,995 132,165
Minority interest
in Operating
Partnership (19,627) (16,248) (56,505) (48,465)
Income before
gain (loss) on
sales of real estate 38,777 29,022 108,490 83,700
Gain (loss) on
sales of real
estate, net (604) 50 (307) 50
Net income before
preferred dividend 38,173 29,072 108,183 83,750
Preferred dividend (1,643) (1,654) (4,929) (4,175)
Net income available
to common
shareholders $36,530 $27,418 $103,254 $79,575
Basic earnings
per share:
Net income available
to common
shareholders $0.53 $0.40 $1.51 $1.21
Weighted average
number of common
shares outstanding 68,752 67,901 68,568 65,672
Diluted earnings
per share:
Net income available
to common
shareholders $0.50 $0.40 $1.48 $1.20
Weighted average
number of common
and common
equivalent shares
outstanding 72,570 68,484 69,600 66,280
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended Nine months ended
September 30, September 30,
2000 1999 2000 1999
Income before
minority interests
and joint venture
income $58,100 $45,243 $164,320 $135,990
Add:
Real estate
depreciation and
amortization 33,007 30,882 97,556 87,669
Income from
unconsolidated
joint ventures 549 206 1,356 648
Less:
Minority property
partnerships' share
of Funds from
Operations (284) (211) (774) (3,502)
Preferred dividends
and distributions (8,248) (8,303) (24,748) (23,808)
Funds from operations $83,124 $67,817 $237,710 $196,997
Funds from operations
available to common
shareholders $61,543 $50,207 $175,526 $144,569
Weighted average
shares outstanding
- basic 68,752 67,901 68,568 65,672
Per share - basic $ 0.90 $ 0.74 $2.56 $2.20
Weighted average
shares outstanding
- diluted 83,657 81,485 82,600 76,674
Per share - diluted $ 0.85 $ 0.72 $2.46 $2.15
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2000 1999
(unaudited)
(in thousands, except share amounts)
ASSETS
Real estate: $5,782,961 $5,609,424
Less: accumulated depreciation (554,339) (470,591)
Total real estate 5,228,622 5,138,833
Cash and cash equivalents 12,430 12,035
Escrows 29,509 40,254
Investments in securities 14,065 14,460
Tenant and other receivables, net 40,039 28,362
Accrued rental income, net 89,072 82,228
Deferred charges, net 74,743 53,733
Prepaid expenses and other assets 49,519 28,452
Investments in joint ventures 73,118 36,415
Total assets $5,611,117 $5,434,772
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $3,218,135 $2,955,584
Unsecured line of credit 235,000 366,000
Accounts payable and accrued expenses 59,542 66,780
Dividends and distributions payable 61,217 50,114
Accrued interest payable 5,951 8,486
Other liabilities 60,831 48,282
Total liabilities 3,640,676 3,495,246
Commitments and contingencies - -
Minority interests 774,365 781,962
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, 69,317,999 and 67,910,434 issued and
outstanding in 2000 and 1999, respectively 693 679
Additional paid-in capital 1,112,855 1,067,778
Dividends in excess of earnings (11,879) (10,893)
Unearned compensation (901) -
Accumulated other comprehensive loss (4,692) -
Total stockholders' equity 1,096,076 1,057,564
Total liabilities and
stockholders' equity $5,611,117 $5,434,772
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
September 30, 2000 December 31, 1999
Greater Boston 98.0% 96.7%
Greater Washington, D.C. 97.8% 96.4%
Midtown Manhattan 99.2% 97.8%
Baltimore, MD 100.0% 99.7%
Richmond, VA 100.0% 98.0%
Princeton/East Brunswick, NJ 99.4% 98.9%
Greater San Francisco 98.5% 96.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.5% 97.1%
Occupancy by Type
September 30, 2000 December 31, 1999
Class A Office Portfolio 99.2% 97.7%
R&D Portfolio 93.4% 93.0%
Industrial Portfolio 89.6% 90.4%
Total Portfolio 98.5% 97.1%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Elaine Quinlan, Investor Relations for Boston
Properties, Inc., 617-236-3300; or General, Marilynn Meek,
212-661-8030, Analyst, Claire Koeneman, 312-266-7800, or Media,
Judith Sylk-Siegel, 212-661-8030, all of The Financial Relations
Board
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