Reports Diluted FFO Per Share of $0.91 Before Accounting Charge Related To
SFAS No. 133
BOSTON, Oct. 23 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the third quarter ended September 30, 2001.
Funds from Operations (FFO) for the quarter ended September 30, 2001 were
$86.6 million, or $0.96 per share basic and $0.91 per share diluted before an
accounting charge related to the application of SFAS No. 133, "Accounting for
Derivative Instruments and Hedging Activities" for the quarter ended
September 30, 2001.
FFO for the third quarter of 2001 compares to FFO of $61.5 million, or
$0.90 per share basic and $0.85 per share diluted for the quarter ended
September 30, 2000. Excluding the charge related to SFAS No. 133, this
represents a 7.1% year to year increase in diluted FFO per share. The
weighted average number of basic and diluted shares outstanding totaled
90,518,618 and 105,812,336, respectively, for the quarter ended September 30,
2001 and 68,751,768 and 83,657,357, respectively, for the same quarter last
year.
Net income before the charge related to SFAS No. 133 and gain (loss) on
the sale of real estate, totaled $54.9 million or $0.59 per share diluted in
the third quarter of 2001 as compared to $37.1 million or $0.53 per share
diluted for the same period in 2000. Excluding the charge related to SFAS
No. 133 and gain (loss) on the sale of real estate, this represents an 11.3%
per share increase in diluted net income year over 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, 2001. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of September 30, 2001, the Company's portfolio consisted of 147
properties comprising more than 40.9 million square feet, including 13
properties under development totaling 5.0 million square feet. The overall
occupancy rate for the properties in service as of September 30, 2001 was
96.1 %.
Additional highlights of the third quarter include:
-- The refinancing of the mortgage loan collateralized by Sumner Square
on August 8, 2001. The new financing totaling $30.3 million bears
interest at a fixed rate of 7.35% and matures in September 2013.
-- The refinancing of the mortgage loan collateralized by One
Independence Square on August 22, 2001. The new financing totaling
$75.0 million bears interest at a rate equal to LIBOR + 1.60% and
matures in August 2003.
-- The refinancing of the mortgage loan collateralized by 10 & 20
Burlington Mall Road and 91 Hartwell Avenue on October 1, 2001. The
new financing totaling $40.0 million bears interest at a fixed rate of
7.25% and matures in October 2011.
-- The completion of two development projects consisting of Orbital
Sciences Phase II, an approximately 160,000 square foot office
building in Dulles, Virginia and an approximately 130,000 square foot
office building at Quorum Office Park in Chelmsford, Massachusetts.
These projects are 100% leased.
Boston Properties will conduct a conference call tomorrow, October 24,
2001 at 10:00 AM (Eastern Time) to discuss the results of this year's third
quarter. The number to call for this interactive teleconference is
(888) 413-4411. A replay of the conference call will be available through
November 1, 2001 by dialing (888) 266-2086 and entering the passcode 5568450.
Additionally, a copy of Boston Properties' third quarter 2001
"Supplemental Operating and Financial Data" will be available on the Investor
section of the company's website at http://www.bostonproperties.com . These
materials are also available by contacting Investor Relations at 617-236-3300
or by written request to:
Investor Relations
Boston Properties, Inc.
111 Huntington Avenue
Boston, MA 02199
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 four core
markets -- Boston, Midtown Manhattan, Washington, DC and San Francisco.
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 Nine months ended
September 30, September 30,
2001 2000 2001 2000
(unaudited and in thousands, except for
per share amounts)
Revenue
Rental:
Base rent $219,855 $183,749 $613,617 $532,039
Recoveries from tenants 27,473 22,886 80,917 68,956
Parking and other 12,965 12,798 40,244 38,095
Total rental revenue 260,293 219,433 734,778 639,090
Development and management
services 2,805 2,693 9,312 8,432
Interest and other 1,616 1,187 10,349 3,304
Total revenue 264,714 223,313 754,439 650,826
Expenses
Operating 81,475 68,154 228,683 197,366
General and administrative 9,819 9,871 29,649 25,868
Interest 59,936 54,752 163,659 166,210
Depreciation and amortization 38,518 32,436 109,933 97,062
Loss on investments in
securities - - 6,500 -
Total expenses 189,748 165,213 538,424 486,506
Income before net derivative
losses, minority interests and
income from unconsolidated
joint ventures 74,966 58,100 216,015 164,320
Net derivative losses (16,620) - (24,408) -
Minority interests in property
partnerships 374 (245) 629 (681)
Income from unconsolidated
joint ventures 997 549 2,841 1,356
Income before minority interest
in Operating Partnership 59,717 58,404 195,077 164,995
Minority interest in Operating
Partnership (16,709) (19,627) (53,871) (56,505)
Income before gain (loss) on
sale of real estate 43,008 38,777 141,206 108,490
Gain (loss) on sale of real
estate, net of minority
interest - (604) 6,505 (307)
Income before cumulative
effect of a change in
accounting principle 43,008 38,173 147,711 108,183
Cumulative effect of a change
in accounting principle,
net of minority interest - - (6,767) -
Net income before preferred
dividend 43,008 38,173 140,944 108,183
Preferred dividend (1,653) (1,643) (4,944) (4,929)
Net income available
to common shareholders $41,355 $36,530 $136,000 $103,254
Basic earnings per share:
Income before gain (loss)
on sale of real estate
and cumulative effect of
a change in accounting
principle $0.46 $0.54 $1.52 $1.51
Gain (loss) on sale of real
estate, net of minority
interest - (0.01) 0.07 -
Cumulative effect of a
change in accounting
principle, net of
minority interest - - (0.07) -
Net income available to
common shareholders $0.46 $0.53 $1.52 $1.51
Weighted average number of
common shares outstanding 90,519 68,752 89,753 68,568
Diluted earnings per share:
Income before gain (loss)
on sale of real estate
and cumulative effect of
a change in accounting
principle $0.45 $0.53 $1.48 $1.49
Gain (loss) on sale of
real estate, net of
minority interest - (0.01) 0.07 (0.01)
Cumulative effect of a
change in accounting
principle, net of
minority interest - - (0.07) -
Net income available to
common shareholders $0.45 $0.52 $1.48 $1.48
Weighted average number of
common and common
equivalent shares
outstanding 92,828 70,661 92,004 69,600
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2001 2000
(unaudited)
(in thousands, except for share
amounts)
ASSETS
Real estate: $7,297,980 $6,112,779
Less: accumulated depreciation (683,029) (586,719)
Total real estate 6,614,951 5,526,060
Cash and cash equivalents 161,011 280,957
Escrows 20,901 85,561
Investments in securities 4,297 7,012
Tenant and other receivables 28,642 26,852
Accrued rental income 110,441 91,684
Deferred charges, net 104,370 77,319
Prepaid expenses and other assets 46,303 41,154
Investments in unconsolidated joint
ventures 90,160 89,871
Total assets $7,181,076 $6,226,470
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes and bonds payable $4,245,433 $3,414,891
Accounts payable and accrued
expenses 71,716 57,338
Dividends and distributions
payable 79,005 71,274
Interest rate contracts 32,136 -
Accrued interest payable 15,679 5,599
Other liabilities 52,969 51,926
Total liabilities 4,496,938 3,601,028
Commitments and contingencies - -
Minority interests 844,957 877,715
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,
90,720,477 and 86,630,089 issued
and outstanding in 2001 and 2000,
respectively 907 866
Additional paid-in capital 1,784,840 1,673,349
Dividends in excess of earnings (30,456) (13,895)
Unearned compensation (2,242) (848)
Accumulated other comprehensive loss (13,868) (11,745)
Total stockholders' equity 1,739,181 1,647,727
Total liabilities and
stockholders' equity $7,181,076 $6,226,470
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(unaudited and in thousands)
Three months ended Nine months ended
September 30, September 30,
2001 2000 2001 2000
Income before net derivative
losses (SFAS No. 133), minority
interests and income from
unconsolidated joint ventures $74,966 $58,100 $216,015 $164,320
Add:
Real estate depreciation and
amortization 39,360 33,007 112,516 97,556
Income from unconsolidated
joint ventures 997 549 2,841 1,356
Less:
Net derivative losses
(SFAS No. 133) (16,620) - (24,408) -
Minority property partnerships'
share of funds from operations (832) (284) (1,546) (774)
Preferred dividends and
distributions (8,383) (8,248) (24,864) (24,748)
Funds from operations $89,488 $83,124 $280,554 $237,710
Add:
Net derivative losses
(SFAS No. 133) 16,620 - 24,408 -
Funds from operations before
net derivative losses
(SFAS No. 133) $106,108 $83,124 $304,962 $237,710
Funds from operations
available to common
shareholders before net
derivative losses
(SFAS No. 133) $86,627 $61,543 $247,210 $175,526
Weighted average shares
outstanding - basic 90,519 68,752 89,753 68,568
FFO per share basic before net
derivative losses
(SFAS No. 133) $0.96 $0.90 $2.76 $2.56
FFO per share basic after
net derivative losses
(SFAS No. 133) $0.81 $0.90 $2.54 $2.56
Weighted average shares
outstanding - diluted 105,812 83,657 104,991 82,600
FFO per share diluted before
net derivative losses
(SFAS No. 133) $0.91 $0.85 $2.62 $2.46
FFO per share diluted after
net derivative losses
(SFAS No. 133) $0.78 $0.85 $2.43 $2.46
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
Occupancy by Location
September 30, December 31,
2001 2000
Greater Boston 92.9% 99.3%
Greater Washington, D.C. 97.8% 98.5%
Midtown Manhattan 99.9% 99.9%
Baltimore, MD 99.6% 99.8%
Richmond, VA 98.6% 100.0%
Princeton/East Brunswick, NJ 92.8% 98.7%
Greater San Francisco 94.5% 97.9%
Bucks County, PA 100.0% 100.0%
Total Portfolio 96.1% 98.9%
Occupancy by Type
September 30, December 31,
2001 2000
Class A Office Portfolio 96.2% 99.0%
Office/Technical Portfolio 97.3% 98.0%
Industrial Portfolio 87.3% 95.9%
Total Portfolio 96.1% 98.9%
SOURCE Boston Properties, Inc.
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Related links:
http://www.bostonproperties.com
CONTACT:
Douglas T. Linde, Chief Financial Officer of
Boston Properties, Inc., +1-617-236-3300, or General Info.,
Marilynn Meek, +1-212-445-8431, Analysts, Claire Koeneman,
+1-312-266-7800, or Media, Judith Sylk-Siegel, +1-212-445-8431,
all of FRB Weber Shandwick
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