BOSTON, Oct. 26 /PRNewswire/ -- Boston Properties, Inc. (NYSE: BXP) today
reported results for the third quarter and the nine months ended September 30,
1998.
Funds from Operations (FFO) for the quarter ended September 30, 1998 were
approximately $41.1 million, or $0.65 per share basic and $0.64 per share
diluted, compared to FFO of approximately $20.2 million, or $0.52 per share
basic and diluted for the quarter ended September 30, 1997. The weighted
average number of basic and diluted shares outstanding totaled 63,467,722 and
63,991,255, respectively, for the quarter ended September 30, 1998 and
38,693,541 and 38,998,244, respectively, for the same quarter last year. FFO
for the nine months ended September 30, 1998 were approximately
$109.5 million, or $1.82 per share basic and $1.80 per share diluted, compared
to FFO on a pro forma basis of approximately $56.0 million, or $1.45 per share
basic and $1.44 per share diluted, for the nine months ended September 30,
1997.
Revenues were approximately $140.2 million for the quarter and
$343.8 million for the nine months ended September 30, 1998, compared to
revenues of $63.0 million and $177.8 million (pro forma) for the same periods
in 1997. Net income for the quarter was approximately $25.3 million and
$74.9 million for the nine months ended September 30, 1998, compared to
$13.7 million and $36.5 million (pro forma), respectively, for the same
periods in 1997. Net income per share for the quarter was $0.40 per share
basic and diluted, compared to $0.36 per share basic and $0.35 per share
diluted last year, and was $1.25 per share basic and $1.23 per share diluted
for the nine months ended September 30, 1998, compared to $0.94 per share
basic and diluted 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 September 30, 1998, the Company's portfolio consisted of
114 properties comprising more than 25.5 million square feet, including
9 properties under development totaling approximately 1.9 million square feet.
The overall occupancy rate for the properties in service as of September 30,
1998 was 98.5%.
Additional highlights of the third quarter include:
-- Acquisition of the Prudential Center, a 2.2-million-square-foot
mixed-use urban center located in Boston, Mass., on July 2, 1998 for
approximately $519.0 million for the commercial property and
$27.0 million for development rights.
-- Acquisition of Metropolitan Square, a 583,685-square-foot Class A
office complex in Washington, D.C., on July 10, 1998 for approximately
$175.0 million.
-- Acquisition of the Candler Building, a 518,954-square-foot Class A
office building in Baltimore, Md., on July 21, 1998 for approximately
$61.0 million.
-- Entry into a binding agreement to acquire the portfolio known as
Embarcadero Center in San Francisco, Calif., on September 28, 1998,
consisting of approximately 3.76 million square feet in six Class A
buildings, for approximately $1.22 billion.
Also in the third quarter, on August 18, 1998, the Company acquired 1301
New York Avenue, N.W., a 12-story 185,000-square-foot Class A office building
located three blocks from the White House in Washington, D.C., for
approximately $28.0 million, in the form of Operating Partnership Units in
Boston Properties Limited Partnership and mortgage financing. The Company is
in the process of renovating this property, which will be 100% occupied by the
General Services Administration.
Since September 30, 1998 the Company has obtained mortgage financing
totaling $95.0 million secured by 100 East Pratt Street in Baltimore, Md. The
proceeds were used to pay down a portion of the Company's unsecured line of
credit.
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 predominantly located in Greater Boston; Greater
Washington, D.C.; Midtown Manhattan; Baltimore, Md.; Richmond, Va. and
Princeton/East Brunswick, N.J. The Company is one of the largest owners and
developers of office properties in the United States.
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 per share data)
Three months ended Nine months ended
September 30, September 30,
1998 1997 1998 1997
(pro forma)
Revenue
Rental:
Base rent $119,535 $53,433 $286,610 $150,393
Recoveries from tenants 13,665 5,656 33,027 16,512
Parking and other 3,174 162 5,880 2,681
Total rental revenue 136,374 59,251 325,517 169,586
Development and management
services 2,734 2,105 8,893 5,438
Interest and other 1,069 1,633 9,410 2,796
Total revenue 140,177 62,989 343,820 177,820
Expenses
Rental:
Operating 23,651 8,071 50,444 22,350
Real estate taxes 19,604 8,452 46,744 23,964
General and administrative 6,129 2,917 16,750 8,708
Interest 33,183 14,719 81,926 42,797
Depreciation and amortization 21,523 9,268 51,212 27,514
Total expenses 104,090 43,427 247,076 125,333
Income before minority interests 36,087 19,562 96,744 52,487
Minority interest in
property partnership (161) (60) (390) (303)
Income before minority
interest in Operating
Partnership 35,926 19,502 96,354 52,184
Minority interest in
Operating Partnership (10,585) (5,722) (25,025) (15,687)
Income before extraordinary items 25,341 13,780 71,329 36,497
Extraordinary gain (loss) on
early debt extinguishments, net -- (58) 3,564 --
Net income $25,341 $13,722 $74,893 $36,497
Basic earnings per share:
Income before extraordinary items $0.40 $0.36 $1.19 $0.94
Extraordinary gain (loss), net -- -- 0.06 --
Net income $0.40 $0.36 $1.25 $0.94
Weighted average number of
common shares outstanding 63,468 38,694 60,101 38,694
Diluted earnings per share:
Income before extraordinary items $0.40 $0.35 $1.17 $0.94
Extraordinary gain (loss), net -- -- 0.06 --
Net income $0.40 $0.35 $1.23 $0.94
Weighted average number of
common shares outstanding 63,991 38,998 60,744 38,979
BOSTON PROPERTIES, INC.
FUNDS FROM OPERATIONS
(Unaudited)
Three Months Ended
September 30,
1998 1997 % Change
(Actual) (Actual)
Income from operations before
minority interests $36,087 $19,562 84.48%
Add:
Real estate depreciation and
amortization 21,359 9,143 133.61%
Less:
Preferred allocation (1,505) -- --
Minority property partnership's
share of Funds from Operations (178) (117) 52.14%
Funds from Operations $55,763 $28,588 95.06%
Company's share (A) $41,053 $20,200 103.23%
Funds from Operations per share - basic $0.65 $0.52 23.90%
Weighted average shares outstanding
- basic 63,468 38,694 64.03%
Funds from Operations per share -
diluted $0.64 $0.52 23.85%
Weighted average shares
outstanding - diluted 63,991 38,998 64.09%
(A) Based on weighted average shares for the quarter. Company's share
for the quarter ended 9/30/98 was 73.62% and 70.66% for the quarter
ended 9/30/97.
Nine Months Ended
September 30,
1998 1997 % Change
(Actual) (Pro forma)
Income from operations before
minority interests $96,744 $52,487 84.32%
Add:
Real estate depreciation and
amortization 50,718 27,132 86.93%
Less:
Preferred allocation (1,505) -- --
Minority property partnership's
share of Funds from Operations (460) (368) 25.00%
Funds from Operations $145,497 $79,251 83.59%
Company's share $109,472 $55,999 95.49%
Funds from Operations per share - basic $1.82 $1.45 25.86%
Weighted average shares outstanding - basic 60,101 38,694 55.32%
Funds from Operations per share - diluted $1.80 $1.44 25.44%
Weighted average shares
outstanding - diluted 60,744 38,979 55.84%
BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited and in thousands)
September 30, December 31,
1998 1997
ASSETS
Real estate: $3,562,645 $1,796,500
Less: accumulated depreciation (335,821) (294,218)
Total real estate 3,226,824 1,502,282
Cash and cash equivalents 15,544 17,560
Escrows 19,668 14,178
Tenant and other receivables, net 33,160 24,458
Accrued rental income, net 67,692 55,190
Deferred charges, net 41,244 35,485
Prepaid expenses and other assets 23,064 20,225
Investment in joint ventures 32,136 3,143
Total assets $3,459,332 $1,672,521
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Mortgage notes payable $1,752,430 $1,099,253
Unsecured line of credit 195,000 233,000
Accounts payable and accrued expenses 41,502 23,822
Dividends payable -- 22,539
Accrued interest payable 4,784 6,581
Other liabilities 26,357 11,642
Total liabilities 2,020,073 1,396,837
Commitments and contingencies -- --
Minority interests 462,015 100,636
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,
63,526,785 issued and outstanding 635 387
Additional paid-in capital 949,972 172,347
Earnings in excess of dividends 26,357 2,314
Total stockholders' equity 977,244 175,048
Total liabilities and stockholders'
equity $3,459,332 $1,672,521
BOSTON PROPERTIES, INC.
PORTFOLIO OCCUPANCY
(Unaudited)
Occupancy by Location
September 30, 1998 December 31, 1997
Greater Boston, MA 99.0% 98.3%
Greater Washington, DC 98.5% 97.3%
Midtown Manhattan, NY 99.6% 95.2%
Baltimore, MD 99.2% 98.0%
Richmond, VA 98.8% n/a
Princeton/East Brunswick, NJ 100.0% n/a
Greater San Francisco, CA 99.7% 98.4%
Bucks County, PA 100.0% 100.0%
Total Portfolio 98.5% 97.2%
Occupancy by Type
Class A Office Portfolio 98.9% 97.6%
R&D Portfolio 98.2% 97.3%
Industrial Portfolio 95.0% 93.4%
Total Portfolio 98.5% 97.2%
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,
617-859-2600; or Marianne Stewart, General Info., 212-661-8030,
Claire Koeneman, Analysts, 312-266-7800, or Judith Sylk-Siegel,
Media, 212-661-8030, all of The Financial Relations Board
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