Reports FFO of $0.72 per Share
BOSTON, Oct. 25 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the third quarter and nine months ended
September 30, 1999.
Funds from Operations (FFO) for the quarter ended September 30, 1999 were
$50.2 million, or $0.74 per share basic and $0.72 per share diluted, compared
to FFO of $41.1 million, or $0.65 per share basic and $0.64 per share diluted,
for the quarter ended September 30, 1998. This represents a 12.5%
year-to-year increase in diluted FFO per share. The weighted average number
of basic and diluted shares outstanding totaled 67,900,734 and 81,485,166,
respectively, for the quarter ended September 30, 1999 and 63,467,722 and
63,991,255, respectively, for the same quarter last year.
FFO for the nine months ended September 30, 1999 were $144.6 million, or
$2.20 per share basic and $2.15 per share diluted, compared to FFO of
$109.5 million, or $1.82 per share basic and $1.80 per share diluted, for the
nine months ended September 30, 1998. This represents a 19.4% year-to-year
increase in diluted FFO per share. The weighted average number of basic and
diluted shares outstanding totaled 65,672,095 and 76,674,436, respectively,
for the nine months ended September 30, 1999 and 60,101,500 and, 60,743,896,
respectively, for the same period last year.
Revenues were $202.2 million for the quarter and $581.5 million for the
nine months ended September 30, 1999, compared to revenues of $140.2 million
and $343.8 million for the same periods in 1998. Net income available to
common shareholders was $27.4 million for the quarter and $79.6 million for
the nine months ended September 30, 1999, compared to $25.3 million and
$74.9 million for the same periods in 1998. Net income per share available to
common shareholders for the quarter ended September 30, 1999 and 1998 was
$0.40 per share basic and diluted. Income per share before extraordinary gain
for the nine months ended September 30, 1999 was $1.21 per share basic and
$1.20 per share diluted, compared to $1.19 per share basic and $1.17 per share
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
September 30, 1999. In the opinion of management, all adjustments considered
necessary for a fair presentation of these reported results have been made.
As of September 30, 1999, the Company's portfolio consisted of 132
properties comprised of more than 35.3 million square feet, including 10
properties under development totaling 3.5 million square feet. The overall
occupancy rate for the properties in service as of September 30, 1999 was
97.8%.
Additional highlights of the third quarter include:
-- Acquisition of 206 Carnegie Center, a 161,763 net rentable square foot
Class A office building in Princeton, New Jersey for $27.0 million on
July 9, 1999. The property is currently 100% leased.
-- Acquisition of the leasehold interest and ground rent credits at 5
Times Square in New York, New York for approximately $152.5 million.
The development will consist of a 37-floor, 1.1 million square foot
office tower that has been 100% pre-leased to Ernst & Young.
-- Acquisition of The Gateway, two Class A office buildings with 487,453
net rentable square feet and two development sites for approximately
$117.6 million on August 31, 1999, in South San Francisco, California.
The two office buildings are currently 96.0% leased.
-- Closing of mortgage financing secured by Eight Cambridge Center in the
amount of $29.0 million at a rate of 7.73% and maturing in July 2010.
-- Closing of mortgage financing secured by The Gateway in the amount of
$75.0 million at a rate of LIBOR + 1.60% and maturing in September
2000.
-- Closing of a construction loan secured by the 111 Huntington Avenue
development in the amount of $203.0 million at a rate of LIBOR + 2.00%
and maturing in September 2002.
-- Closing of a construction loan secured by the Orbital Sciences Phase I
development in the amount of $27.0 million at a rate of LIBOR + 1.65%
and maturing in August 2002.
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 . Also visit
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.
Funds from Operations
Three months Three months Nine months Nine months
ended ended ended ended
Sept. 30, Sept. 30, Sept. 30, Sept. 30,
1999 1998 1999 1998
(unaudited and in thousands)
Income before
minority interests $45,311 $36,087 $136,058 $96,744
Add:
Real estate
depreciation and
amortization 30,882 21,359 87,669 50,718
Income from
unconsolidated
joint venture 206 -- 648 --
Less:
Gain on sale of land (68) - (68) --
Minority property
partnership's share
of Funds from
Operations (211) (178) (3,502) (460)
Preferred
allocation (8,303) (1,505) (23,808) (1,505)
Funds from operations $67,817 $55,763 $196,997 $145,497
Funds from operations
available to common
shareholders $50,207 $41,053 $144,569 $109,472
Weighted average shares
outstanding - basic 67,901 63,468 65,672 60,102
Per share - basic $0.74 $0.65 $2.20 $1.82
Weighted average shares
outstanding
- diluted 81,485 63,991 76,674 60,744
Per share - diluted $0.72 $0.64 $2.15 $1.80
BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended Nine months ended
September 30, September 30,
1999 1998 1999 1998
(unaudited and in thousands, except per share amounts)
Revenue
Rental:
Base rent $166,582 $119,535 $476,261 $286,610
Recoveries
from tenants 19,212 13,665 53,878 33,027
Parking and
other 11,261 3,174 34,272 5,880
Total rental
revenue 197,055 136,374 564,411 325,517
Development and
management services 3,706 2,734 11,364 8,893
Interest and other 1,444 1,069 5,710 9,410
Total
revenue 202,205 140,177 581,485 343,820
Expenses
Operating 66,665 43,255 184,321 97,188
General and
administrative 7,383 6,129 21,345 16,750
Interest 51,768 33,183 151,446 81,926
Depreciation and
amortization 31,078 21,523 88,315 51,212
Total
expenses 156,894 104,090 445,427 247,076
Income before minority
interests and joint
venture income 45,311 36,087 136,058 96,744
Minority interests
in property
partnerships (179) (161) (4,473) (390)
Income from
unconsolidated
joint venture 206 -- 648 --
Income before minority
interest in Operating
Partnership 45,338 35,926 132,233 96,354
Minority interest in
Operating
Partnership (16,266) (10,585) (48,483) (25,025)
Income before
extraordinary item 29,072 25,341 83,750 71,329
Extraordinary gain,
net -- -- -- 3,564
Income before
preferred dividend 29,072 25,341 83,750 74,893
Preferred dividend (1,654) -- (4,175) --
Net income available
to common
shareholders $27,418 $25,341 $79,575 $74,893
Basic earnings per share:
Income before
extraordinary gain $0.40 $0.40 $1.21 $1.19
Extraordinary
gain, net -- -- -- 0.06
Net income available
to common
shareholders $0.40 $0.40 $1.21 $1.25
Weighted average
number of common
shares outstanding 67,901 63,468 65,672 60,101
Diluted earnings per share:
Income before
extraordinary gain $0.40 $0.40 $1.20 $1.17
Extraordinary
gain, net -- -- -- 0.06
Net income
available to
common shareholders $0.40 $0.40 $1.20 $1.23
Weighted average
number of common
and common
equivalent shares
outstanding 68,484 63,991 66,280 60,744
BOSTON PROPERTIES, INC.
CONSOLIDATEDBALANCE SHEETS
September 30, December 31,
1999 1998
(unaudited)
(in thousands, except share amounts)
ASSETS
Real estate: $5,505,625 $4,917,193
Less: accumulated depreciation (441,575) (357,384)
Total real estate 5,064,050 4,559,809
Cash and cash equivalents 50,415 12,166
Notes receivable -- 420,143
Escrows 25,886 19,014
Tenant and other receivables, net 21,420 40,830
Accrued rental income, net 78,413 64,251
Deferred charges, net 49,590 46,029
Prepaid expenses and other assets 29,194 26,058
Investments in joint ventures 35,807 46,787
Total assets $5,354,775 $5,235,087
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $2,943,763 $2,653,581
Notes payable -- 420,143
Unsecured line of credit 334,000 15,000
Accounts payable and accrued expenses 49,070 42,897
Dividends payable 48,483 40,494
Accrued interest payable 9,611 7,307
Other liabilities 34,919 27,950
Total liabilities 3,419,846 3,207,372
Commitments and contingencies -- --
Minority interests 780,910 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, 67,902,967
and 63,527,819 issued and outstanding
in 1999 and 1998, respectively 679 635
Additional paid-in capital 1,068,050 955,711
Dividends in excess of earnings (14,710) (7,865)
Total stockholders' equity 1,054,019 948,481
Total liabilities and
stockholders' equity $5,354,775 $5,235,087
BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
Occupancy by Location
September 30, 1999 December 31, 1998
Greater Boston 97.6% 97.0%
Greater Washington, DC 96.5% 98.5%
Midtown Manhattan 99.9% 99.9%
Baltimore, MD 100.0% 99.8%
Richmond, VA 97.1% 98.8%
Princeton/East Brunswick, NJ 99.1% 98.7%
Greater San Francisco 97.6% 98.5%
Bucks County, PA 100.0% 100.0%
Total Portfolio 97.8% 98.4%
Occupancy by Type
September 30, 1999 December 31, 1998
Class A Office Portfolio 98.3% 98.8%
R&D Portfolio 95.9% 99.2%
Industrial Portfolio 90.4% 89.3%
Total Portfolio 97.8% 98.4%
SOURCE Boston Properties, Inc.
 back to top
Related links:
http://www.bostonproperties.com
CONTACT:
Elaine Quinlan, Investor Relations, of Boston
Properties, Inc., 617-236-3300; or General Info., Marianne
Stewart, 212-661-8030, Analyst, Claire Koeneman, 312-266-7800,
Media, Judith Sylk-Siegel, 212-661-8030, all of The Financial
Relations Board for Boston Properties, Inc.
|
