<PAGE>
Exhibit 99.2
BOSTON PROPERTIES, INC.
800 BOYLSTON STREET, SUITE 400
BOSTON, MA 02199
(NYSE: BXP)
AT THE COMPANY AT THE FINANCIAL RELATIONS BOARD
Elaine Quinlan Marilynn Meek - General Info. (212) 661-8030
Investor Relations Claire Koeneman - Analyst (312) 266-7800
(617) 236-3300 Judith Sylk-Siegel - Media (212) 661-8030
BOSTON PROPERTIES, INC. ANNOUNCES
SECOND QUARTER 2000 RESULTS
REPORTS FFO PER SHARE OF $0.83
BOSTON, MA, JULY 25, 2000 - Boston Properties, Inc. (NYSE: BXP) today reported
results for the second quarter ended June 30, 2000.
Funds from Operations (FFO) for the quarter ended June 30, 2000 were $59.3
million, or $0.87 per share basic and $0.83 per share diluted, compared to FFO
of $48.7 million, or $0.74 per share basic and $0.72 per share diluted for the
quarter ended June 30, 1999. This represents a 15.3% year to year increase in
diluted FFO per share. The weighted average number of basic and diluted shares
outstanding totaled 67,991,227 and 82,582,547, respectively, for the quarter
ended June 30, 2000 and 65,533,924 and 79,329,377, respectively, for the same
quarter last year.
FFO for the six months ended June 30, 2000 were $113.8 million, or $1.67 per
share basic and $1.61 per share diluted, compared to FFO of $94.3 million, or
$1.46 per share basic and $1.42 per share diluted for the six months ended June
30, 1999. The weighted average number of basic and diluted shares outstanding
totaled 67,972,726 and 81,870,560, respectively, for the six months ended June
30, 2000 and 64,539,307 and 77,562,965, respectively, for the same period last
year.
Revenues were $217.3 million for the quarter and $427.5 million for the six
months ended June 30, 2000, compared to revenues of $191.6 million and $379.3
million for the same periods in 1999. Net income available to common
shareholders for the quarter and six months ended June 30, 2000 was $34.9
million and $65.9 million, respectively, compared to $27.2 million and $52.2
million for the same periods in 1999. Net income per share available to common
shareholders for the quarter and six months ended June 30, 2000 was $0.51 per
share basic and $0.50 per share diluted and $0.97 per share basic and $0.96 per
share diluted, respectively, compared to $0.42 per share basic and $0.41 per
share diluted and $0.81 per share basic and $0.80 per share diluted for the same
periods last year.
-MORE-
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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 June 30,
2000. In the opinion of management, all adjustments considered necessary for a
fair presentation of these reported results have been made.
As of June 30, 2000, the Company's portfolio consisted of 142 properties
comprising more than 36.3 million square feet, including thirteen properties
under development totaling 3.8 million square feet. The overall occupancy rate
for the properties in service as of June 30, 2000 was 98.5%.
Additional highlights of the second quarter include:
- The refinancing of the mortgage loan on Ten Cambridge Center and the
Cambridge Center North Garage on April 6, 2000 which consisted of replacing
the $40.0 million mortgage loan with a $36.0 million loan and removing the
Cambridge Center North Garage as collateral. The new financing bears
interest at a rate equal to 8.27% and matures in April 2010.
- The closing of construction financing totaling $32.0 million collateralized
by the 2600 Tower Oaks Boulevard development project in Rockville, Maryland
on April 13, 2000. Such financing bears interest at a rate equal to LIBOR +
1.90% and matures in October 2002.
- The refinancing of the mortgage loan on Metropolitan Square on April 20,
2000 which consisted of replacing the $104.0 million mortgage loan with a
$140.0 million loan. The new financing bears interest at a rate equal to
8.23% and matures in April 2010.
- The closing of construction financing totaling $78.0 million
collateralized by the 140 Kendrick Street development project in Needham,
Massachusetts on April 24, 2000. Such financing matures in July 2002 and
consists of two tranches: $16.4 million bearing interest at a rate of
LIBOR + 1.35% and $61.6 million bearing interest at a rate of LIBOR +
1.65%.
- On May 3, 2000, the Board of Directors of the Company declared a second
quarter common dividend of $0.53 per share, a 17.8% increase from the
previous quarter.
- The acquisition of a 49% interest in Metropolitan Square, a 582,194 square
foot Class A office building in Washington, D.C., and a 75% interest in
140 Kendrick Street, a 381,000 square foot build-to-suit development
property in Needham, Massachusetts, by the New York State Common
Retirement Fund on May 12, 2000 for approximately $46.7 million and the
assumption of $88.2 million of debt. These properties were previously 100%
owned by Boston Properties.
- Signing of an agreement with Captivate Network, Inc. ("Captivate") in which
Captivate will provide a network of video displays in building elevators
which will
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deliver subscriber messaging, commercial advertising, news and other
information to at least 26 Class A office buildings comprising more than
14.4 million square feet. The agreement provides for Boston Properties to
participate in any revenues Captivate generates resulting from Boston
Properties' buildings and for Boston Properties to receive 605,555 warrants
for shares of common stock in Captivate.
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.
Financial tables follow.
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BOSTON PROPERTIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
2000 1999 2000 1999
------ ------ ------ ------
(UNAUDITED AND IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
<S> <C> <C> <C> <C>
Revenue
Rental:
Base rent $177,953 $158,070 $348,290 $309,679
Recoveries from tenants 22,734 17,252 46,070 34,666
Parking and other 12,289 12,087 25,297 23,011
-------- -------- -------- --------
Total rental revenue 212,976 187,409 419,657 367,356
Development and management services 2,876 3,611 5,739 7,658
Interest and other 1,407 620 2,117 4,266
-------- -------- -------- --------
Total revenue 217,259 191,640 427,513 379,280
-------- -------- -------- --------
Expenses
Operating 64,035 60,306 129,212 117,656
General and administrative 8,589 7,352 15,997 13,962
Interest 56,243 49,219 111,458 99,678
Depreciation and amortization 32,395 29,443 64,626 57,237
-------- -------- -------- --------
Total expenses 161,262 146,320 321,293 288,533
-------- -------- -------- --------
Income before minority interests and joint venture income 55,997 45,320 106,220 90,747
Minority interests in property partnerships (240) (136) (436) (4,294)
Income from unconsolidated joint ventures 662 229 807 442
-------- -------- -------- --------
Income before minority interest in Operating Partnership 56,419 45,410 106,591 86,895
Minority interest in Operating Partnership (20,193) (16,505) (37,745) (32,217)
-------- -------- -------- --------
Income before gain on sale of real estate 36,226 28,905 68,846 54,678
Gain on sale of real estate, net 297 -- 297 --
-------- -------- -------- --------
Net income before preferred dividend 36,523 28,905 69,143 54,678
Preferred dividend (1,643) (1,682) (3,286) (2,521)
-------- -------- -------- --------
Net income available to common shareholders $ 34,880 $ 27,223 $ 65,857 $ 52,157
======== ======== ======== ========
Basic earnings per share:
Net income available to common shareholders $ 0.51 $ 0.42 $ 0.97 $ 0.81
======== ======== ======== ========
Weighted average number of common shares outstanding 67,991 65,534 67,973 64,539
======== ======== ======== ========
Diluted earnings per share:
Net income available to common shareholders $ 0.50 $ 0.41 $ 0.96 $ 0.80
======== ======== ======== ========
Weighted average number of common and common
equivalent shares outstanding 69,582 66,337 69,157 65,161
======== ======== ======== ========
</TABLE>
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BOSTON PROPERTIES, INC.
CONSOLIDATED BALANCE SHEETS
<TABLE>
<CAPTION>
JUNE 30 DECEMBER 31,
2000 1999
----------- ------------
(UNAUDITED)
(IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<S> <C> <C>
ASSETS
------
Real estate: $5,701,704 $5,609,424
Less: accumulated depreciation (525,201) (470,591)
---------- ----------
Total real estate 5,176,503 5,138,833
Cash and cash equivalents 6,319 12,035
Escrows 33,025 40,254
Investments in securities 28,283 14,460
Tenant and other receivables, net 32,340 28,362
Accrued rental income, net 84,425 82,228
Deferred charges, net 69,599 53,733
Prepaid expenses and other assets 39,074 28,452
Investments in joint ventures 69,486 36,415
---------- ----------
Total assets $5,539,054 $5,434,772
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Liabilities:
Mortgage notes payable $3,157,068 $2,955,584
Unsecured line of credit 238,000 366,000
Accounts payable and accrued expenses 53,922 66,780
Dividends and distributions payable 59,812 50,114
Accrued interest payable 6,127 8,486
Other liabilities 52,497 48,282
---------- ----------
Total liabilities 3,567,426 3,495,246
---------- ----------
Commitments and contingencies -- --
---------- ----------
Minority interests 797,451 781,692
---------- ----------
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, 68,026,798 and 67,910,434 issued and
outstanding in 2000 and 1999, respectively 680 679
Additional paid-in capital 1,076,593 1,067,778
Dividends in excess of earnings (11,670) (10,893)
Unearned compensation (954) --
Accumulated other comprehensive income 9,528 --
---------- ----------
Total stockholders' equity 1,074,177 1,057,564
---------- ----------
Total liabilities and stockholders' equity $5,539,054 $5,434,772
========== ==========
</TABLE>
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FUNDS FROM OPERATIONS
(UNAUDITED AND IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
------------------- -------------------
2000 1999 2000 1999
------ ------ ------ -------
<S> <C> <C> <C> <C>
Income before minority interests and joint venture income $55,997 $45,320 $106,220 $ 90,747
Add:
Real estate depreciation and amortization 32,497 29,238 64,549 56,787
Income from unconsolidated joint ventures 662 229 807 442
Less:
Minority property partnership's share
of Funds from Operations (266) (129) (490) (3,291)
Preferred dividends and distributions (8,250) (8,293) (16,500) (15,505)
------- ------- -------- --------
Funds from operations $80,640 $66,366 $154,586 $129,180
======= ======= ======== ========
Funds from operations available to common shareholders $59,347 $48,673 $113,767 $ 94,343
======= ======= ======== ========
Weighted average shares outstanding - basic 67,991 65,534 67,973 64,539
======= ======= ======== ========
Per share - basic $ 0.87 $ 0.74 $ 1.67 $ 1.46
======= ======= ======== ========
Weighted average shares outstanding - diluted 82,583 79,329 81,871 77,563
======= ======= ======== ========
Per share - diluted $ 0.83 $ 0.72 $ 1.61 $ 1.42
======= ======= ======== ========
</TABLE>
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BOSTON PROPERTIES, INC
PORTFOLIO OCCUPANCY
<TABLE>
<CAPTION>
OCCUPANCY BY LOCATION
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
<S> <C> <C>
Greater Boston 97.8% 96.7%
Greater Washington, D.C. 97.2% 96.4%
Midtown Manhattan 100.0% 97.8%
Baltimore, MD 99.8% 99.7%
Richmond, VA 100.0% 98.0%
Princeton/East Brunswick, NJ 99.8% 98.9%
Greater San Francisco 99.1% 96.4%
Bucks County, PA 100.0% 100.0%
------------- -----------------
Total Portfolio 98.5% 97.1%
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</TABLE>
<TABLE>
<CAPTION>
OCCUPANCY BY TYPE
JUNE 30, 2000 DECEMBER 31, 1999
------------- -----------------
<S> <C> <C>
Class A Office Portfolio 99.4% 97.7%
R&D Portfolio 92.0% 93.0%
Industrial Portfolio 90.3% 90.4%
------------- -----------------
Total Portfolio 98.5% 97.1%
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</TABLE>
