EX-99.1 2 d404487dex991.htm EX-99.1

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Exhibit 99.1

Supplemental Operating and Financial Data

for the Quarter Ended June 30, 2017

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SECOND QUARTER 2017

Table of Contents

|  | Page |
Company Profile |  |  | 3 |
Investor Information |  |  | 4 |
Research Coverage |  |  | 5 |
Guidance and Assumptions |  |  | 6 |
Financial Highlights |  |  | 7-8 |
Consolidated Balance Sheets |  |  | 9 |
Consolidated Income Statements |  |  | 10 |
Funds From Operations |  |  | 11 |
Funds Available for Distribution |  |  | 12 |
Interest Coverage Ratios |  |  | 13 |
Capital Structure |  |  | 14 |
Debt Analysis |  |  | 15-16 |
Unconsolidated Joint Ventures |  |  | 17-18 |
Consolidated Joint Ventures |  |  | 19-20 |
Reconciliation of Net Income Attributable to Boston Properties, Inc. Common Shareholders to Same Property Performance |  |  | 21-22 |
Same Property Net Operating Income by Reportable Segment |  |  | 23 |
Residential and Hotel Performance |  |  | 24 |
Capital Expenditures, Tenant Improvements and Leasing Commissions |  |  | 25 |
Portfolio Overview |  |  | 26 |
In-Service Property Listing |  |  | 27-29 |
Occupancy by Location |  |  | 30 |
Top 20 Tenants and Tenant Diversification |  |  | 31 |
Aggregate Lease Expiration Roll Out |  |  | 32 |
Boston Lease Expiration Roll Out |  |  | 33-34 |
New York Lease Expiration Roll Out |  |  | 35-36 |
San Francisco and Los Angeles Lease Expiration Roll Out |  |  | 37-38 |
Washington, DC Lease Expiration Roll Out |  |  | 39-40 |
CBD/Suburban Lease Expiration Roll Out |  |  | 41-42 |
Leasing Activity |  |  | 43 |
Acquisitions/Dispositions |  |  | 44 |
Value Creation Pipeline - Construction in Progress |  |  | 45 |
Value Creation Pipeline - Land Parcels and Purchase Options |  |  | 46 |
Definitions |  |  | 47-48 |

This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. You can identify these statements by our use of the words “assumes,” “believes,” “budgeted,” “estimates,” “expects,” “guidance,” “intends,” “may,” “might,” “plans,” “projects,” “should,” “will” and similar expressions that do not relate to historical matters. You should exercise caution in interpreting and relying on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that 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, acquisition and disposition activity, the ability to effectively integrate acquisitions, the uncertainties of investing in new markets, the ability of our joint venture partners to satisfy their obligations, the costs and availability of financing, the effectiveness of our interest rate hedging programs, the effects of local, national and international economic and market conditions, the effects of acquisitions, dispositions and possible impairment charges on our operating results, the impact of newly adopted accounting principles on the Company’s accounting policies and on period-to-period comparisons of financial results, regulatory changes and other risks and uncertainties detailed from time to time in the Company’s filings with the Securities and Exchange Commission. These forward-looking statements speak only as of the date of issuance of this report and are not guarantees of future results, performance or achievements. Boston Properties does not undertake a duty to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

(Cover photos: Salesforce Tower (left), interior of 680 Folsom Street (top right) and 690 Folsom Street (bottom right), San Francisco, CA)

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SECOND QUARTER 2017

COMPANY PROFILE

The Company

Boston Properties, Inc. (“Boston Properties,” “BXP” or the “Company”), a self-administered and self-managed real estate investment trust (REIT), is one of the largest owners, managers, and developers of Class A office properties in the United States, with a significant presence in five markets: Boston, Los Angeles, New York, San Francisco and Washington, DC. The Company was founded in 1970 by Mortimer B. Zuckerman and Edward H. Linde in Boston, where it maintains its headquarters. Boston Properties became a public company in June 1997. Boston Properties is a fully integrated real estate investment trust that develops, redevelops, acquires, manages, operates and owns a diverse portfolio of primarily Class A office space totaling 48.4 million square feet and consisting of 164 office properties (including six properties under construction/redevelopment), five retail properties, five residential properties (including three properties under construction) and one hotel. Boston Properties is well-known for its in-house building management expertise and responsiveness to tenants’ needs. The Company holds a superior track record in developing premium Central Business District (CBD) office buildings, successful mixed-use complexes, suburban office centers and build-to-suit projects for the U.S. government and a diverse array of creditworthy tenants.

Management

Boston Properties’ senior management team is among the most respected and accomplished in the REIT industry. Our deep and talented team of 35 individuals averages 31 years of real estate experience and 19 years with Boston Properties. We believe that our size, management depth, financial strength, reputation, and relationships of key personnel provide a competitive advantage to realize growth through property development and acquisitions. Boston Properties benefits from the reputation and relationships of key personnel, including Owen D. Thomas, Chief Executive Officer; Douglas T. Linde, President; Raymond A. Ritchey, Senior Executive Vice President; and Michael E. LaBelle, Executive Vice President, Chief Financial Officer and Treasurer. Our senior management team’s national reputation helps us attract business and investment opportunities. In addition, our other executive officers that serve as Regional Managers have strong reputations that assist in identifying and closing on new opportunities, having opportunities brought to us, and in negotiating with tenants and build-to-suit prospects. Additionally, Boston Properties’ Board of Directors consists of 11 distinguished members, the majority of whom are Independent Directors.

Strategy

Boston Properties’ primary business objective is to maximize return on investment in an effort to provide its investors with the greatest possible total return in all points of the economic cycle. To achieve this objective, the Company maintains consistent strategies that include the following:

| • |  | concentrating on select targeted markets characterized by high barriers to the creation of new supply and strong real estate fundamentals where tenants have demonstrated a preference for high-quality office buildings and other facilities—currently Boston, Los Angeles, New York, San Francisco and Washington, DC;

| • |  | investing in the highest quality buildings (primarily office) with unique amenities and locations that are able to maintain high occupancy and achieve premium rental rates through economic cycles;

| • |  | in our core markets, maintaining scale and a full-service real estate capability (leasing, development, construction and property management) to ensure we (1) see all relevant investment deal flow, (2) maintain an ability to execute on all types of real estate opportunities, such as acquisitions, dispositions, repositioning and development, throughout the real estate investment cycle and (3) provide superior service to our tenants;

| • |  | be astute in market timing for investment decisions by acquiring properties in times of opportunity, developing into economic growth and selectively selling assets at attractive prices, resulting in continuous portfolio refreshment;

| • |  | taking on complex, technically challenging development projects that leverage the skills of our management team to successfully develop, acquire, and reposition properties;

| • |  | exploring joint-venture opportunities with partners who seek to benefit from our depth of development and management expertise;

| • |  | ensuring a strong balance sheet to maintain consistent access to capital and the resultant ability to make opportunistic investments; and

| • |  | fostering a culture and reputation of integrity and fair dealing, making us the counterparty of choice for tenants and real estate industry participants and employer of choice for talented real estate professionals.

Snapshot

(as of June 30, 2017)

Corporate Headquarters |  | Boston, Massachusetts
Markets |  | Boston, Los Angeles, New York, San Francisco and Washington, DC
Fiscal Year-End |  | December 31
Total Properties (includes unconsolidated joint ventures) |  | 175
Total Square Feet (includes unconsolidated joint ventures) |  | 48.4 million
Common shares outstanding, plus common units and LTIP units (other than unearned Multi-Year Long-Term Incentive Program (“MYLTIP”) Units) on an as-converted basis (1) |  | 171.9 million
Dividend - Quarter/Annualized |  | $0.75/$3.00
Dividend Yield |  | 2.44%
Consolidated Market Capitalization |  | $31.6 billion
BXP’s Share of Market Capitalization (2) |  | $30.7 billion
Senior Debt Ratings |  | A- (S&P); BBB+ (Fitch); Baa2 (Moody’s)

(1) | For additional detail, see page 14.

(2) | For the Company’s definition of BXP’s Share of Market Capitalization and related disclosures, see page 47. For a reconciliation of Consolidated Market Capitalization to BXP’s Share of Market Capitalization, see page 14.

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SECOND QUARTER 2017

INVESTOR INFORMATION

Board of Directors |  | Management
Joel I. Klein |  | Dr. Jacob A. Frenkel |  | Raymond A. Ritchey |  | John F. Powers
Lead Independent Director |  | Director, Chair of Nominating & |  | Senior Executive Vice President |  | Executive Vice President,
|  | Corporate Governance Committee |  |  |  | New York Region
Owen D. Thomas |  |  |  | Michael E. LaBelle |  |
Chief Executive Officer and Director |  | Matthew J. Lustig |  | Executive Vice President, Chief Financial |  | Frank D. Burt
|  | Director |  | Officer and Treasurer |  | Senior Vice President, General Counsel
Douglas T. Linde |  |  |  |  |  |
President and Director |  | Alan J. Patricof |  | Peter D. Johnston |  | Michael R. Walsh
|  | Director |  | Executive Vice President, |  | Senior Vice President, Chief Accounting Officer
Bruce W. Duncan |  |  |  | Washington, DC Region |  |
Director |  | Martin Turchin |  |  |  |
|  | Director |  | Bryan J. Koop |  |
Karen E. Dykstra |  |  |  | Executive Vice President, |  |
Director |  | David A. Twardock |  | Boston Region |  |
|  | Director, Chair of Audit |  |  |  |
Carol B. Einiger |  | Committee |  | Robert E. Pester |  |
Director, Chair of Compensation |  |  |  | Executive Vice President, |  |
Committee |  |  |  | San Francisco Region |  |
Chairman Emeritus |  |  |  |  |  |
Mortimer B. Zuckerman |  |  |  |  |  |
Company Information
Corporate Headquarters |  | Trading Symbol |  | Investor Relations |  | Inquires
800 Boylston Street |  | BXP |  | Boston Properties, Inc. |  | Inquiries should be directed to
Suite 1900 |  |  |  | 800 Boylston Street, Suite 1900 |  | Michael E. LaBelle
Boston, MA 02199 |  | Stock Exchange Listing |  | Boston, MA 02199 |  | Executive Vice President, Chief Financial Officer
(t) 617.236.3300 |  | New York Stock Exchange |  | (t) 617.236.3322 |  | and Treasurer
(f) 617.236.3311 |  |  |  | (f) 617.236.3311 |  | at 617.236.3352 or
|  |  |  | www.bostonproperties.com |  | mlabelle@bostonproperties.com
|  |  |  |  |  | Arista Joyner, Investor Relations Manager
|  |  |  |  |  | at 617.236.3343 or
|  |  |  |  |  | ajoyner@bostonproperties.com

Common Stock Data (NYSE: BXP)

Boston Properties’ common stock has the following characteristics (based on information reported by the New York Stock Exchange):

|  | Q2 2017 |  |  | Q1 2017 |  |  | Q4 2016 |  |  | Q3 2016 |  |  | Q2 2016 |
High Closing Price |  | $ | 136.87 |  |  | $ | 139.88 |  |  | $ | 133.39 |  |  | $ | 143.61 |  |  | $ | 133.13 |
Low Closing Price |  | $ | 120.27 |  |  | $ | 127.00 |  |  | $ | 114.07 |  |  | $ | 130.03 |  |  | $ | 123.71 |
Average Closing Price |  | $ | 126.45 |  |  | $ | 132.59 |  |  | $ | 124.31 |  |  | $ | 138.78 |  |  | $ | 128.38 |
Closing Price, at the end of the quarter |  | $ | 123.02 |  |  | $ | 132.41 |  |  | $ | 125.78 |  |  | $ | 136.29 |  |  | $ | 131.90 |
Dividends per share |  | $ | 0.75 |  |  | $ | 0.75 |  |  | $ | 0.75 |  |  | $ | 0.65 |  |  | $ | 0.65 |
Closing dividend yield—annualized |  |  | 2.44 | % |  |  | 2.27 | % |  |  | 2.39 | % |  |  | 1.91 | % |  |  | 1.97 | %
Closing common shares outstanding, plus common units and LTIP units (other than unearned MYLTIP Units) on an as-converted basis (thousands) (1) |  |  | 171,949 |  |  |  | 171,938 |  |  |  | 171,774 |  |  |  | 171,775 |  |  |  | 171,772 |
Closing market value of outstanding shares and units (thousands) |  | $ | 21,353,166 |  |  | $ | 22,966,310 |  |  | $ | 21,805,734 |  |  | $ | 23,611,215 |  |  | $ | 22,856,727 |

(1) | For additional detail, see page 14.

Timing

Quarterly results for the next four quarters will be announced according to the following schedule:

Third Quarter, 2017 |  | Tentatively November 1, 2017 |  |  |  |
Fourth Quarter, 2017 |  | Tentatively January 30, 2018 |  |  |  |
First Quarter, 2018 |  | Tentatively April 24, 2018 |  |  |  |
Second Quarter, 2018 |  | Tentatively July 31, 2018 |  |  |  |

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SECOND QUARTER 2017

RESEARCH COVERAGE

Equity Research Coverage |  | Debt Research Coverage |  | Rating Agencies
Jacob Kilstein |  | Craig Mailman / Jordan Sadler |  | Andrew Mollay |  | Stephen Boyd
Argus Research Company |  | KeyBanc Capital Markets |  | Bank of America Merrill Lynch |  | Fitch Ratings
646.747.5447 |  | 917.368.2316 / 917.368.2280 |  | 646.855.6435 |  | 212.908.9153
Jeffrey Spector / Jamie Feldman |  | Richard Anderson |  | Peter Troisi |  | Ranjini Venkatesan
Bank of America Merrill Lynch |  | Mizuho Securities |  | Barclays |  | Moody’s Investors Service
646.855.1363 / 646.855.5808 |  | 212.205.8445 |  | 212.412.3695 |  | 212.553.3828
Ross Smotrich |  | Vikram Malhotra |  | Thomas Cook |  | Anita Ogbara
Barclays Capital |  | Morgan Stanley |  | Citi Investment Research |  | Standard & Poor’s
212.526.2306 |  | 212.761.7064 |  | 212.723.1112 |  | 212.438.5077
John Kim |  | Brad Schwer |  | Mark Streeter |  |
BMO Capital |  | Morningstar |  | J.P. Morgan Securities |  |
212.885.4115 |  | 312.244.7061 |  | 212.834.5086 |  |
Tom Catherwood |  | Mike Carroll |  | Thierry Perrein / Jason Jones |  |
BTIG |  | RBC Capital Markets |  | Wells Fargo |  |
212.593.7510 |  | 440.715.2649 |  | 704.715.8455 / 704.715.7932 |  |
Michael Bilerman / Emmanuel Korchman |  | David Rodgers / Richard Schiller |  |  |  |
Citigroup Global Markets |  | RW Baird |  |  |  |
212.816.1383 / 212.816.1382 |  | 216.737.7341 / 312.609.5485 |  |  |  |
Barry Oxford |  | Alexander Goldfarb / Daniel Santos |  |  |  |
D.A. Davidson & Co. |  | Sandler O’Neill & Partners |  |  |  |
212.240.9871 |  | 212.466.7937 / 212.466.7927 |  |  |  |
Vincent Chao / Mike Husseini |  | John Guinee / Erin Aslakson |  |  |  |
Deutsche Bank Securities |  | Stifel, Nicolaus & Company |  |  |  |
212.250.6799 / 212.250.7703 |  | 443.224.1307 / 443.224.1350 |  |  |  |
Steve Sakwa / Robert Simone |  | Michael Lewis |  |  |  |
Evercore ISI |  | SunTrust Robinson Humphrey |  |  |  |
212.446.9462 / 212.446.9459 |  | 212.319.5659 |  |  |  |
Jed Reagan |  | Nick Yulico |  |  |  |
Green Street Advisors |  | UBS Securities |  |  |  |
949.640.8780 |  | 212.713.3402 |  |  |  |
Jonathan Petersen / Omotayo Okusanya |  | Blaine Heck |  |  |  |
Jefferies & Co. |  | Wells Fargo Securities |  |  |  |
212.284.1705 / 212.336.7076 |  | 443.263.6529 |  |  |  |
Anthony Paolone |  |  |  |  |  |
J.P. Morgan Securities 212.622.6682 |  |  |  |  |  |

With the exception of Green Street Advisors, an independent research firm, the equity analysts listed above are those analysts that, according to First Call Corporation, have published research material on the Company and are listed as covering the Company. Please note that any opinions, estimates or forecasts regarding Boston Properties’ performance made by the analysts listed above do not represent the opinions, estimates or forecasts of Boston Properties or its management. Boston Properties does not by its reference above imply its endorsement of or concurrence with any information, conclusions or recommendations made by any of such analysts.

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SECOND QUARTER 2017

GUIDANCE

The Company’s guidance for the third quarter 2017 and full year 2017 for diluted earnings per common share attributable to Boston Properties, Inc. common shareholders (“EPS”) and diluted funds from operations (“FFO”) per common share attributable to Boston Properties, Inc. common shareholders is set forth and reconciled below. Except as described below, the estimates reflect management’s view of current and future market conditions, including assumptions with respect to rental rates, occupancy levels, the timing of the lease-up of available space and development deliveries and the earnings impact of the events referenced in the earnings release issued on August 1, 2017 and otherwise referenced during the Company’s conference call scheduled for August 2, 2017. The estimates do not include possible future gains or losses or the impact on operating results from other possible future property acquisitions or dispositions, other possible capital markets activity or possible future impairment charges. EPS estimates may be subject to fluctuations as a result of several factors, including changes in the recognition of depreciation and amortization expense and any gains or losses associated with disposition activity. The Company is not able to assess at this time the potential impact of these factors on projected EPS. By definition, FFO does not include real estate-related depreciation and amortization, impairment losses on depreciable real estate or gains or losses associated with disposition activities. For a complete definition of FFO and statements of the reasons why management believes it provides useful information to investors, see page 48. There can be no assurance that the Company’s actual results will not differ materially from the estimates set forth below.

|  | Third Quarter 2017 |  |  | Full Year 2017 |
|  | Low |  |  |  |  |  | High |  |  | Low |  |  |  |  |  | High |
Projected EPS (diluted) |  | $ | 0.65 |  |  |  | - |  |  | $ | 0.67 |  |  | $ | 2.72 |  |  |  | - |  |  | $ | 2.77 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected Company share of real estate depreciation and amortization |  |  | 0.87 |  |  |  | - |  |  |  | 0.87 |  |  |  | 3.50 |  |  |  | - |  |  |  | 3.50 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Projected Company share of gains on sales of real estate |  |  | — |  |  |  | - |  |  |  | — |  |  |  | 0.02 |  |  |  | - |  |  |  | 0.02 |
Projected FFO per share (diluted) |  | $ | 1.52 |  |  |  | - |  |  | $ | 1.54 |  |  | $ | 6.20 |  |  |  | - |  |  | $ | 6.25 |

ASSUMPTIONS

(dollars in thousands)

|  | Full Year 2017 |
|  | Low |  |  |  |  |  | High |
Operating property activity: |  |  |  |  |  |  |  |  |  |  |  |
Average In-service portfolio occupancy |  |  | 90.0 | % |  |  | - |  |  |  | 91.0 | %
Increase in BXP’s Share of Same Property net operating income (excluding termination income) |  |  | 2.00 | % |  |  | - |  |  |  | 3.00 | %
Increase in BXP’s Share of Same Property net operating income - cash (excluding termination income) |  |  | 1.00 | % |  |  | - |  |  |  | 3.00 | %
BXP’s Share of Non Same Properties’ incremental contribution to net operating income over prior year |  | $ | 17,000 |  |  |  | - |  |  | $ | 23,000 |
BXP’s Share of Straight-line rent and fair value lease revenue (non-cash revenue) |  | $ | 75,000 |  |  |  | - |  |  | $ | 85,000 |
Hotel net operating income |  | $ | 13,000 |  |  |  | - |  |  | $ | 15,000 |
Termination income |  | $ | 21,000 |  |  |  | - |  |  | $ | 25,000 |
Other income (expense): |  |  |  |  |  |  |  |  |  |  |  |
Development and management services income |  | $ | 30,000 |  |  |  | - |  |  | $ | 33,000 |
General and administrative expense |  | $ | (115,000 | ) |  |  | - |  |  | $ | (110,000 | )
Net interest expense |  | $ | (368,000 | ) |  |  | - |  |  | $ | (355,000 | )
Noncontrolling interest: |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interest in property partnerships’ share of FFO |  | $ | (132,000 | ) |  |  | - |  |  | $ | (117,000 | )

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SECOND QUARTER 2017

FINANCIAL HIGHLIGHTS

(unaudited and in thousands, except ratios and per share amounts)

This section includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Quantitative reconciliations of the differences between the most directly comparable GAAP financial measures and the non-GAAP financial measures presented are shown on pages 11-13. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations, and, if applicable, the other purposes for which management uses the measures, can be found on pages 47-48.

|  | Three Months Ended |
|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 97,083 |  |  | $ | 147,214 |  |  | $ | 76,753 |  |  | $ | 96,597 |
Net income attributable to Boston Properties, Inc. per share - basic |  | $ | 0.87 |  |  | $ | 0.63 |  |  | $ | 0.96 |  |  | $ | 0.50 |  |  | $ | 0.63 |
Net income attributable to Boston Properties, Inc. per share - diluted |  | $ | 0.87 |  |  | $ | 0.63 |  |  | $ | 0.96 |  |  | $ | 0.50 |  |  | $ | 0.63 |
FFO attributable to Boston Properties, Inc. (1) |  | $ | 257,881 |  |  | $ | 228,383 |  |  | $ | 236,898 |  |  | $ | 219,564 |  |  | $ | 220,595 |
Diluted FFO per share (1) |  | $ | 1.67 |  |  | $ | 1.48 |  |  | $ | 1.54 |  |  | $ | 1.42 |  |  | $ | 1.43 |
Dividends per common share |  | $ | 0.75 |  |  | $ | 0.75 |  |  | $ | 0.75 |  |  | $ | 0.65 |  |  | $ | 0.65 |
Funds available for distribution to common shareholders and common unitholders (FAD) (1) (2) |  | $ | 172,723 |  |  | $ | 178,002 |  |  | $ | 151,183 |  |  | $ | 149,725 |  |  | $ | 160,948 |
Ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest Coverage Ratio (excluding capitalized interest) (3) |  |  | 4.28 |  |  |  | 3.88 |  |  |  | 3.86 |  |  |  | 3.49 |  |  |  | 3.63 |
Interest Coverage Ratio (including capitalized interest) (3) |  |  | 3.67 |  |  |  | 3.40 |  |  |  | 3.46 |  |  |  | 3.17 |  |  |  | 3.28 |
FFO Payout Ratio (2) |  |  | 44.91 | % |  |  | 50.68 | % |  |  | 48.70 | % |  |  | 45.77 | % |  |  | 45.45 | %
FAD Payout Ratio (2) |  |  | 74.72 | % |  |  | 72.49 | % |  |  | 85.28 | % |  |  | 74.63 | % |  |  | 69.42 | %
Selected Items (4): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  | $ | 656,907 |  |  | $ | 632,228 |  |  | $ | 636,061 |  |  | $ | 625,228 |  |  | $ | 623,546 |
Partners’ share of revenue from consolidated joint ventures |  |  | (73,027 | ) |  |  | (70,178 | ) |  |  | (69,766 | ) |  |  | (69,391 | ) |  |  | (69,609 | )
BXP’s share of revenue from unconsolidated joint ventures |  |  | 26,174 |  |  |  | 25,650 |  |  |  | 24,828 |  |  |  | 25,271 |  |  |  | 18,825 |
BXP’s Share of revenue |  | $ | 610,054 |  |  | $ | 587,700 |  |  | $ | 591,123 |  |  | $ | 581,108 |  |  | $ | 572,762 |
Straight-line rent |  | $ | 3,060 |  |  | $ | 12,023 |  |  | $ | 14,711 |  |  | $ | 11,107 |  |  | $ | (6,503 | )
Partners’ share of straight-line rent from consolidated joint ventures |  |  | 3,326 |  |  |  | (590 | ) |  |  | (1,103 | ) |  |  | (707 | ) |  |  | (718 | )
BXP’s share of straight-line rent from unconsolidated joint ventures |  |  | 2,435 |  |  |  | 3,563 |  |  |  | 3,696 |  |  |  | 3,285 |  |  |  | 1,787 |
BXP’s Share of straight-line rent |  | $ | 8,821 |  |  | $ | 14,996 |  |  | $ | 17,304 |  |  | $ | 13,685 |  |  | $ | (5,434 | )
Fair value lease revenue (5) |  | $ | 5,464 |  |  | $ | 5,390 |  |  | $ | 6,840 |  |  | $ | 6,547 |  |  | $ | 8,808 |
Partners’ share of fair value lease revenue from consolidated joint ventures (5) |  |  | (1,580 | ) |  |  | (1,575 | ) |  |  | (2,194 | ) |  |  | (2,084 | ) |  |  | (3,031 | )
BXP’s share of fair value lease revenue from unconsolidated joint ventures (5) |  |  | 492 |  |  |  | 493 |  |  |  | 494 |  |  |  | 511 |  |  |  | (1 | )
BXP’s Share of fair value lease revenue |  | $ | 4,376 |  |  | $ | 4,308 |  |  | $ | 5,140 |  |  | $ | 4,974 |  |  | $ | 5,776 |
Lease termination fees |  | $ | 13,601 |  |  | $ | 3,918 |  |  | $ | 504 |  |  | $ | (170 | ) |  | $ | 7,654 |
Partners’ share of lease termination fees from consolidated joint ventures |  |  | (2,506 | ) |  |  | (1,310 | ) |  |  | (31 | ) |  |  | 421 |  |  |  | (44 | )
BXP’s share of termination income from unconsolidated joint ventures |  |  | 404 |  |  |  | 316 |  |  |  | 13 |  |  |  | 8 |  |  |  | 4 |
BXP’s Share of termination income |  | $ | 11,499 |  |  | $ | 2,924 |  |  | $ | 486 |  |  | $ | 259 |  |  | $ | 7,614 |
Fair value interest adjustment and hedge amortization |  | $ | 7,319 |  |  | $ | 10,323 |  |  | $ | 10,145 |  |  | $ | 10,378 |  |  | $ | 11,272 |
Partners’ share of fair value interest adjustment and hedge amortization from consolidated joint ventures |  |  | (3,464 | ) |  |  | (4,627 | ) |  |  | (4,598 | ) |  |  | (4,569 | ) |  |  | (4,540 | )
BXP’s share of fair value interest adjustment and hedge amortization from unconsolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s Share of fair value interest adjustment |  | $ | 3,855 |  |  | $ | 5,696 |  |  | $ | 5,547 |  |  | $ | 5,809 |  |  | $ | 6,732 |
Ground rent expense (6) |  | $ | 3,462 |  |  | $ | 3,459 |  |  | $ | 3,460 |  |  | $ | 3,471 |  |  | $ | 3,469 |
Gains (losses) from early extinguishments of debt |  | $ | 14,354 |  |  | $ | — |  |  | $ | — |  |  | $ | (371 | ) |  | $ | — |
Capitalized interest |  | $ | 14,283 |  |  | $ | 12,345 |  |  | $ | 10,281 |  |  | $ | 9,788 |  |  | $ | 9,899 |
Capitalized wages |  | $ | 4,930 |  |  | $ | 3,947 |  |  | $ | 5,376 |  |  | $ | 4,155 |  |  | $ | 4,467 |
Operating margins [(rental revenue—rental expense)/rental revenue] |  |  | 63.8 | % |  |  | 63.1 | % |  |  | 63.6 | % |  |  | 62.3 | % |  |  | 64.0 | %
Income from unconsolidated joint ventures |  | $ | 3,108 |  |  | $ | 3,084 |  |  | $ | 2,585 |  |  | $ | 1,464 |  |  | $ | 2,234 |
BXP’s share of funds from operations (FFO) from unconsolidated joint ventures |  | $ | 12,737 | (7) |  | $ | 12,125 |  |  | $ | 11,277 |  |  | $ | 10,592 |  |  | $ | 6,852 |
Net income attributable to noncontrolling interests in property partnerships |  | $ | 15,203 |  |  | $ | 4,424 |  |  | $ | (2,121 | ) |  | $ | (17,225 | ) |  | $ | 6,814 |
FFO attributable to noncontrolling interests in property partnerships |  | $ | 34,530 | (8) |  | $ | 25,839 |  |  | $ | 25,135 |  |  | $ | 23,682 |  |  | $ | 26,183 |

(1) | For the Company’s definitions and related disclosures, see pages 47-48.

(2) | FFO Payout Ratio equals dividends per common share (excluding any special dividends) divided by FFO per share-diluted. For a quantitative reconciliation of FFO, see page 11. FAD Payout Ratio equals distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD. For a quantitative reconciliation of FAD, see page 12.

(3) | For a quantitative reconciliation and related disclosures, see page 13.

(4) | Partners’ share and BXP’s share of line items below are based upon percentage ownership interests in the applicable joint ventures. For additional details, see page 47.

(5) | Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

(6) | Includes non-cash straight-line adjustments to ground rent expense. See page 13 for the straight-line adjustments to the ground rent expense.

(7) | For additional detail, see page 18.

(8) | For additional detail, see page 20.

7

##### Table of Contents

SECOND QUARTER 2017

FINANCIAL HIGHLIGHTS (continued)

(unaudited and in thousands, except ratios and per share amounts)

This section includes non-GAAP financial measures, which are accompanied by what the Company considers the most directly comparable financial measures calculated and presented in accordance with GAAP. Definitions of these non-GAAP financial measures and statements of the reasons why management believes the non-GAAP measures provide useful information to investors about the Company’s financial condition and results of operations and, if applicable, the other purposes for which management uses the measures, can be found on pages 47-48.

|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Balance Sheet Items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Above-market rents (included within Prepaid Expenses and Other Assets) |  | $ | 30,810 |  |  | $ | 33,923 |  |  | $ | 37,079 |  |  | $ | 40,346 |  |  | $ | 43,780 |
Below-market rents (included within Other Liabilities) |  | $ | 115,869 |  |  | $ | 123,545 |  |  | $ | 132,495 |  |  | $ | 142,595 |  |  | $ | 152,576 |
Accrued ground rent expense, net liability (included within Prepaid Expenses and Other Assets and Other Liabilities) |  | $ | 43,753 |  |  | $ | 43,356 |  |  | $ | 42,717 |  |  | $ | 41,718 |  |  | $ | 40,687 |
Outside members’ notes payable (1) |  | $ | — |  |  | $ | 180,000 |  |  | $ | 180,000 |  |  | $ | 180,000 |  |  | $ | 180,000 |
Accrued interest payable on outside members’ notes payable (included within Accrued Interest Payable) (1) |  | $ | — |  |  | $ | 162,936 |  |  | $ | 153,758 |  |  | $ | 144,825 |  |  | $ | 136,131 |
Capitalization: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Stock Price @ Quarter End |  | $ | 123.02 |  |  | $ | 132.41 |  |  | $ | 125.78 |  |  | $ | 136.29 |  |  | $ | 131.90 |
Equity Value @ Quarter End |  | $ | 21,353,166 |  |  | $ | 22,966,310 |  |  | $ | 21,805,734 |  |  | $ | 23,611,215 |  |  | $ | 22,856,727 |
Consolidated Debt |  | $ | 10,236,639 |  |  | $ | 9,886,845 |  |  | $ | 9,796,133 |  |  | $ | 9,808,922 |  |  | $ | 9,934,084 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of Unconsolidated Joint Venture Debt (2) |  |  | 317,724 |  |  |  | 317,719 |  |  |  | 318,193 |  |  |  | 350,225 |  |  |  | 350,831 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Partners’ share of Consolidated Debt (5) |  |  | 1,211,485 |  |  |  | 1,138,446 |  |  |  | 1,144,473 |  |  |  | 1,150,462 |  |  |  | 1,156,399 |
BXP’s Share of Debt (3)(4) |  | $ | 9,342,878 |  |  | $ | 9,066,118 |  |  | $ | 8,969,853 |  |  | $ | 9,008,685 |  |  | $ | 9,128,516 |
Consolidated Market Capitalization |  | $ | 31,589,805 |  |  | $ | 32,853,155 |  |  | $ | 31,601,867 |  |  | $ | 33,420,137 |  |  | $ | 32,790,811 |
Consolidated Debt/Consolidated Market Capitalization (3) |  |  | 32.40 | % |  |  | 30.09 | % |  |  | 31.00 | % |  |  | 29.35 | % |  |  | 30.30 | %
BXP’s Share of Market Capitalization (3)(4) |  | $ | 30,696,044 | (6) |  | $ | 32,032,428 |  |  | $ | 30,775,587 |  |  | $ | 32,619,900 |  |  | $ | 31,985,243 |
BXP’s Share of Debt/BXP’s Share of Market Capitalization (3)(4) |  |  | 30.44 | % (6) |  |  | 28.30 | % |  |  | 29.15 | % |  |  | 27.62 | % |  |  | 28.54 | %

(1) | On June 7, 2017, the Company’s consolidated entity in which it has a 60% interest and that owns 767 Fifth Avenue (the General Motors Building) in New York City completed the refinancing of the indebtedness that had been secured by direct and indirect interests in the property. For further information, reference the Company’s 2nd quarter earnings press release.

(2) | Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 17.

(3) | For the Company’s definitions, see pages 47-48.

(4) | Partners’ share and BXP’s share of line items are based upon percentage ownership interests in the applicable joint ventures. For additional details, see page 47.

(5) | Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 19.

(6) | For additional detail, see page 14.

8

##### Table of Contents

SECOND QUARTER 2017

CONSOLIDATED BALANCE SHEETS

(unaudited and in thousands)

|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate |  | $ | 19,015,077 |  |  | $ | 18,931,136 |  |  | $ | 18,862,648 |  |  | $ | 18,704,856 |  |  | $ | 18,690,403 |
Construction in progress (1) |  |  | 1,348,838 |  |  |  | 1,211,324 |  |  |  | 1,037,959 |  |  |  | 954,013 |  |  |  | 865,359 |
Land held for future development (2) |  |  | 250,451 |  |  |  | 249,800 |  |  |  | 246,656 |  |  |  | 243,887 |  |  |  | 241,106 |
Less accumulated depreciation |  |  | (4,379,446 | ) |  |  | (4,302,283 | ) |  |  | (4,222,235 | ) |  |  | (4,113,553 | ) |  |  | (4,056,716 | )
Total real estate |  |  | 16,234,920 |  |  |  | 16,089,977 |  |  |  | 15,925,028 |  |  |  | 15,789,203 |  |  |  | 15,740,152 |
Cash and cash equivalents |  |  | 492,435 |  |  |  | 302,939 |  |  |  | 356,914 |  |  |  | 419,323 |  |  |  | 1,180,044 |
Cash held in escrows |  |  | 47,345 |  |  |  | 51,244 |  |  |  | 63,174 |  |  |  | 63,980 |  |  |  | 65,654 |
Investments in securities |  |  | 26,781 |  |  |  | 25,817 |  |  |  | 23,814 |  |  |  | 23,022 |  |  |  | 21,775 |
Tenant and other receivables, net |  |  | 88,687 |  |  |  | 73,012 |  |  |  | 92,548 |  |  |  | 76,258 |  |  |  | 84,861 |
Accrued rental income, net |  |  | 820,022 |  |  |  | 812,124 |  |  |  | 799,138 |  |  |  | 785,569 |  |  |  | 776,816 |
Deferred charges, net |  |  | 658,219 |  |  |  | 666,677 |  |  |  | 686,163 |  |  |  | 680,192 |  |  |  | 697,823 |
Prepaid expenses and other assets |  |  | 93,985 |  |  |  | 150,905 |  |  |  | 129,666 |  |  |  | 176,693 |  |  |  | 144,222 |
Investments in unconsolidated joint ventures |  |  | 819,368 |  |  |  | 793,932 |  |  |  | 775,198 |  |  |  | 775,659 |  |  |  | 252,618 |
Total assets |  | $ | 19,281,762 |  |  | $ | 18,966,627 |  |  | $ | 18,851,643 |  |  | $ | 18,789,899 |  |  | $ | 18,963,965 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage notes payable, net |  | $ | 2,986,283 |  |  | $ | 2,046,959 |  |  | $ | 2,063,087 |  |  | $ | 2,077,707 |  |  | $ | 3,189,013 |
Unsecured senior notes, net |  |  | 7,250,356 |  |  |  | 7,248,152 |  |  |  | 7,245,953 |  |  |  | 7,243,767 |  |  |  | 6,257,274 |
Unsecured line of credit (3) |  |  | — |  |  |  | 105,000 |  |  |  | — |  |  |  | — |  |  |  | — |
Unsecured term loan (3) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mezzanine notes payable |  |  | — |  |  |  | 306,734 |  |  |  | 307,093 |  |  |  | 307,448 |  |  |  | 307,797 |
Outside members’ notes payable |  |  | — |  |  |  | 180,000 |  |  |  | 180,000 |  |  |  | 180,000 |  |  |  | 180,000 |
Accounts payable and accrued expenses |  |  | 303,559 |  |  |  | 313,723 |  |  |  | 298,524 |  |  |  | 312,979 |  |  |  | 287,464 |
Dividends and distributions payable |  |  | 130,432 |  |  |  | 130,418 |  |  |  | 130,308 |  |  |  | 113,038 |  |  |  | 113,071 |
Accrued interest payable |  |  | 85,172 |  |  |  | 266,714 |  |  |  | 243,933 |  |  |  | 234,628 |  |  |  | 222,175 |
Other liabilities |  |  | 452,608 |  |  |  | 446,489 |  |  |  | 450,821 |  |  |  | 461,079 |  |  |  | 508,952 |
Total liabilities |  |  | 11,208,410 |  |  |  | 11,044,189 |  |  |  | 10,919,719 |  |  |  | 10,930,646 |  |  |  | 11,065,746 |
Commitments and contingencies |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Stockholders’ equity attributable to Boston Properties, Inc.: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Excess stock, $0.01 par value, 150,000,000 shares authorized, none issued or outstanding |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Preferred stock, $0.01 par value, 50,000,000 shares authorized; 5.25% Series B cumulative redeemable preferred stock, $0.01 par value, liquidation preference $2,500 per share, 92,000 shares authorized, 80,000 shares issued and outstanding |  |  | 200,000 |  |  |  | 200,000 |  |  |  | 200,000 |  |  |  | 200,000 |  |  |  | 200,000 |
Common stock, $0.01 par value, 250,000,000 shares authorized, 154,307,529, 153,849,231, 153,790,175, 153,773,012 and 153,674,930 outstanding, respectively |  |  | 1,543 |  |  |  | 1,538 |  |  |  | 1,538 |  |  |  | 1,538 |  |  |  | 1,537 |
Additional paid-in capital |  |  | 6,363,034 |  |  |  | 6,339,970 |  |  |  | 6,333,424 |  |  |  | 6,326,580 |  |  |  | 6,316,191 |
Dividends in excess of earnings |  |  | (694,320 | ) |  |  | (712,270 | ) |  |  | (693,694 | ) |  |  | (725,522 | ) |  |  | (702,361 | )
Treasury common stock, at cost |  |  | (2,722 | ) |  |  | (2,722 | ) |  |  | (2,722 | ) |  |  | (2,722 | ) |  |  | (2,722 | )
Accumulated other comprehensive loss |  |  | (53,161 | ) |  |  | (50,983 | ) |  |  | (52,251 | ) |  |  | (73,943 | ) |  |  | (79,748 | )
Total stockholders’ equity attributable to Boston Properties, Inc. |  |  | 5,814,374 |  |  |  | 5,775,533 |  |  |  | 5,786,295 |  |  |  | 5,725,931 |  |  |  | 5,732,897 |
Noncontrolling interests: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common units of the Operating Partnership |  |  | 604,997 |  |  |  | 617,252 |  |  |  | 614,982 |  |  |  | 608,280 |  |  |  | 612,385 |
Property partnerships |  |  | 1,653,981 |  |  |  | 1,529,653 |  |  |  | 1,530,647 |  |  |  | 1,525,042 |  |  |  | 1,552,937 |
Total equity |  |  | 8,073,352 |  |  |  | 7,922,438 |  |  |  | 7,931,924 |  |  |  | 7,859,253 |  |  |  | 7,898,219 |
Total liabilities and equity |  | $ | 19,281,762 |  |  | $ | 18,966,627 |  |  | $ | 18,851,643 |  |  | $ | 18,789,899 |  |  | $ | 18,963,965 |

(1) | Represents the portion of the Company’s consolidated development projects that qualifies for interest capitalization. Such portion generally excludes intangible assets.

(2) | Includes land held for future development and pre-development costs.

(3) | On April 24, 2017, the Company amended and restated its revolving credit agreement. Among other things, the agreement (1) increased the total commitment of the revolving line of credit from $1.0 billion to $1.5 billion, (2) extended the maturity date to April 24, 2022, (3) reduced the per annum variable interest rates, and (4) added a $500.0 million Unsecured Term Loan that permits the Company to draw funds until April 24, 2018.

9

##### Table of Contents

SECOND QUARTER 2017

CONSOLIDATED INCOME STATEMENTS

(unaudited and in thousands, except for per share amounts)

|  | Three Months Ended |
|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Base rent |  | $ | 520,542 |  |  | $ | 503,562 |  |  | $ | 498,941 |  |  | $ | 489,312 |  |  | $ | 493,386 |
Recoveries from tenants |  |  | 89,163 |  |  |  | 89,164 |  |  |  | 91,123 |  |  |  | 92,560 |  |  |  | 85,706 |
Parking and other |  |  | 26,462 |  |  |  | 25,610 |  |  |  | 25,334 |  |  |  | 24,638 |  |  |  | 26,113 |
Total rental revenue |  |  | 636,167 |  |  |  | 618,336 |  |  |  | 615,398 |  |  |  | 606,510 |  |  |  | 605,205 |
Hotel revenue |  |  | 13,375 |  |  |  | 7,420 |  |  |  | 10,965 |  |  |  | 12,354 |  |  |  | 12,808 |
Development and management services |  |  | 7,365 |  |  |  | 6,472 |  |  |  | 9,698 |  |  |  | 6,364 |  |  |  | 5,533 |
Total revenue |  |  | 656,907 |  |  |  | 632,228 |  |  |  | 636,061 |  |  |  | 625,228 |  |  |  | 623,546 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating |  |  | 116,415 |  |  |  | 116,415 |  |  |  | 113,669 |  |  |  | 117,728 |  |  |  | 113,212 |
Real estate taxes |  |  | 109,509 |  |  |  | 109,435 |  |  |  | 108,556 |  |  |  | 109,480 |  |  |  | 104,726 |
Demolition costs |  |  | 4,530 |  |  |  | 2,437 |  |  |  | 1,873 |  |  |  | 1,352 |  |  |  | — |
Hotel operating |  |  | 8,404 |  |  |  | 7,091 |  |  |  | 7,736 |  |  |  | 8,118 |  |  |  | 7,978 |
General and administrative (1) |  |  | 27,141 |  |  |  | 31,386 |  |  |  | 25,293 |  |  |  | 25,165 |  |  |  | 25,418 |
Transaction costs |  |  | 299 |  |  |  | 34 |  |  |  | 1,200 |  |  |  | 249 |  |  |  | 913 |
Impairment loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,783 |  |  |  | — |
Depreciation and amortization |  |  | 151,919 |  |  |  | 159,205 |  |  |  | 178,032 |  |  |  | 203,748 |  |  |  | 153,175 |
Total expenses |  |  | 418,217 |  |  |  | 426,003 |  |  |  | 436,359 |  |  |  | 467,623 |  |  |  | 405,422 |
Operating income |  |  | 238,690 |  |  |  | 206,225 |  |  |  | 199,702 |  |  |  | 157,605 |  |  |  | 218,124 |
Other income (expense) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Income from unconsolidated joint ventures |  |  | 3,108 |  |  |  | 3,084 |  |  |  | 2,585 |  |  |  | 1,464 |  |  |  | 2,234 |
Gain on sale of investment in unconsolidated joint venture |  |  | — |  |  |  | — |  |  |  | 59,370 |  |  |  | — |  |  |  | — |
Interest and other income |  |  | 1,504 |  |  |  | 614 |  |  |  | 573 |  |  |  | 3,628 |  |  |  | 1,524 |
Gains from investments in securities (1) |  |  | 730 |  |  |  | 1,042 |  |  |  | 560 |  |  |  | 976 |  |  |  | 478 |
Interest expense (2) |  |  | (95,143 | ) |  |  | (95,534 | ) |  |  | (97,896 | ) |  |  | (104,641 | ) |  |  | (105,003 | )
Gains (losses) from early extinguishments of debt |  |  | 14,354 |  |  |  | — |  |  |  | — |  |  |  | (371 | ) |  |  | — |
Losses from interest rate contracts |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (140 | ) |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 115,431 |  |  |  | 164,894 |  |  |  | 58,521 |  |  |  | 117,357 |
Gains on sales of real estate |  |  | 3,767 |  |  |  | 133 |  |  |  | — |  |  |  | 12,983 |  |  |  | — |
Net income |  |  | 167,010 |  |  |  | 115,564 |  |  |  | 164,894 |  |  |  | 71,504 |  |  |  | 117,357 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interest in property partnerships |  |  | (15,203 | ) |  |  | (4,424 | ) |  |  | 2,121 |  |  |  | 17,225 |  |  |  | (6,814 | )
Noncontrolling interest—common units of the Operating Partnership (3) |  |  | (15,473 | ) |  |  | (11,432 | ) |  |  | (17,097 | ) |  |  | (9,387 | ) |  |  | (11,357 | )
Net income attributable to Boston Properties, Inc. |  |  | 136,334 |  |  |  | 99,708 |  |  |  | 149,918 |  |  |  | 79,342 |  |  |  | 99,186 |
Preferred dividends |  |  | (2,625 | ) |  |  | (2,625 | ) |  |  | (2,704 | ) |  |  | (2,589 | ) |  |  | (2,589 | )
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 97,083 |  |  | $ | 147,214 |  |  | $ | 76,753 |  |  | $ | 96,597 |
INCOME PER SHARE OF COMMON STOCK (EPS) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to Boston Properties, Inc. per share - basic |  | $ | 0.87 |  |  | $ | 0.63 |  |  | $ | 0.96 |  |  | $ | 0.50 |  |  | $ | 0.63 |
Net income attributable to Boston Properties, Inc. per share - diluted |  | $ | 0.87 |  |  | $ | 0.63 |  |  | $ | 0.96 |  |  | $ | 0.50 |  |  | $ | 0.63 |

(1) | General and administrative expense includes $(730), $(1,042), $(560), $(976) and $(478) and gains from investments in securities include $730, $1,042, $560, $976 and $478 for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively, related to the Company’s deferred compensation plan.

(2) | For the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, interest expense includes $7,078, $9,178, $8,933, $8,694 and $8,461, respectively, consisting of the interest expense on the partner loans for the 767 Fifth Avenue (The GM Building) consolidated joint venture, which amount is allocated to the partners within noncontrolling interests in property partnerships. The Company’s share of the interest expense on its loan to the joint venture eliminates in consolidation. For additional detail see page 8.

(3) | Equals noncontrolling interest—common units of the Operating Partnership’s share of 10.19%, 10.33%, 10.25%, 10.28% and 10.33% of income before net income attributable to noncontrolling interests in Operating Partnership after deduction for preferred distributions for the three months ended June 30, 2017, March 31, 2017, December 31, 2016, September 30, 2016 and June 30, 2016, respectively.

10

##### Table of Contents

SECOND QUARTER 2017

FUNDS FROM OPERATIONS (FFO)

(unaudited and in thousands, except for per share amounts)

|  | Three Months Ended |
|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 97,083 |  |  | $ | 147,214 |  |  | $ | 76,753 |  |  | $ | 96,597 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred dividends |  |  | 2,625 |  |  |  | 2,625 |  |  |  | 2,704 |  |  |  | 2,589 |  |  |  | 2,589 |
Noncontrolling interest - common units of the Operating Partnership |  |  | 15,473 |  |  |  | 11,432 |  |  |  | 17,097 |  |  |  | 9,387 |  |  |  | 11,357 |
Noncontrolling interests in property partnerships |  |  | 15,203 |  |  |  | 4,424 |  |  |  | (2,121 | ) |  |  | (17,225 | ) |  |  | 6,814 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on sales of real estate |  |  | 3,767 |  |  |  | 133 |  |  |  | — |  |  |  | 12,983 |  |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 115,431 |  |  |  | 164,894 |  |  |  | 58,521 |  |  |  | 117,357 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 151,919 |  |  |  | 159,205 |  |  |  | 178,032 |  |  |  | 203,748 |  |  |  | 153,175 |
Noncontrolling interests in property partnerships’ share of depreciation and amortization |  |  | (19,327 | ) |  |  | (21,415 | ) |  |  | (27,256 | ) |  |  | (40,907 | ) |  |  | (19,369 | )
BXP’s share of depreciation and amortization from unconsolidated joint ventures |  |  | 9,629 |  |  |  | 9,041 |  |  |  | 8,692 |  |  |  | 9,128 |  |  |  | 4,618 |
Corporate-related depreciation and amortization |  |  | (486 | ) |  |  | (525 | ) |  |  | (449 | ) |  |  | (393 | ) |  |  | (362 | )
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of investment in unconsolidated joint venture |  |  | — |  |  |  | — |  |  |  | 59,370 |  |  |  | — |  |  |  | — |
Noncontrolling interests in property partnerships |  |  | 15,203 |  |  |  | 4,424 |  |  |  | (2,121 | ) |  |  | (17,225 | ) |  |  | 6,814 |
Preferred dividends |  |  | 2,625 |  |  |  | 2,625 |  |  |  | 2,704 |  |  |  | 2,589 |  |  |  | 2,589 |
FFO attributable to the Operating Partnership common unitholders (including Boston Properties, Inc.) (“Basic FFO”) |  |  | 287,150 |  |  |  | 254,688 |  |  |  | 263,960 |  |  |  | 244,733 |  |  |  | 246,016 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interest - common units of the Operating Partnership’s share of FFO |  |  | 29,269 |  |  |  | 26,305 |  |  |  | 27,062 |  |  |  | 25,169 |  |  |  | 25,421 |
FFO attributable to Boston Properties, Inc. common shareholders |  | $ | 257,881 |  |  | $ | 228,383 |  |  | $ | 236,898 |  |  | $ | 219,564 |  |  | $ | 220,595 |
Boston Properties, Inc.’s percentage share of Basic FFO |  |  | 89.81 | % |  |  | 89.67 | % |  |  | 89.75 | % |  |  | 89.72 | % |  |  | 89.67 | %
Basic FFO per share |  | $ | 1.67 |  |  | $ | 1.48 |  |  | $ | 1.54 |  |  | $ | 1.43 |  |  | $ | 1.44 |
Weighted average shares outstanding - basic |  |  | 154,177 |  |  |  | 153,860 |  |  |  | 153,814 |  |  |  | 153,754 |  |  |  | 153,662 |
Diluted FFO per share |  | $ | 1.67 |  |  | $ | 1.48 |  |  | $ | 1.54 |  |  | $ | 1.42 |  |  | $ | 1.43 |
Weighted average shares outstanding - diluted |  |  | 154,331 |  |  |  | 154,214 |  |  |  | 153,991 |  |  |  | 154,136 |  |  |  | 153,860 |
Reconciliation to Diluted FFO: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic FFO |  | $ | 287,150 |  |  | $ | 254,688 |  |  | $ | 263,960 |  |  | $ | 244,733 |  |  | $ | 246,016 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Effect of dilutive securities - stock-based compensation |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Diluted FFO |  |  | 287,150 |  |  |  | 254,688 |  |  |  | 263,960 |  |  |  | 244,733 |  |  |  | 246,016 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interest - common units of the Operating Partnership’s share of diluted |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FFO |  |  | 29,243 |  |  |  | 26,251 |  |  |  | 27,034 |  |  |  | 25,113 |  |  |  | 25,391 |
Boston Properties, Inc.’s share of Diluted FFO |  | $ | 257,907 |  |  | $ | 228,437 |  |  | $ | 236,926 |  |  | $ | 219,620 |  |  | $ | 220,625 |
Reconciliation of Shares/Units for Diluted FFO: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Shares/units for Basic FFO |  |  | 171,675 |  |  |  | 171,581 |  |  |  | 171,385 |  |  |  | 171,379 |  |  |  | 171,370 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Effect of dilutive securities - stock-based compensation (shares/units) |  |  | 154 |  |  |  | 354 |  |  |  | 177 |  |  |  | 382 |  |  |  | 198 |
Shares/units for Diluted FFO |  |  | 171,829 |  |  |  | 171,935 |  |  |  | 171,562 |  |  |  | 171,761 |  |  |  | 171,568 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Noncontrolling interest - common units of the Operating Partnership’s share of Diluted FFO (shares/units) |  |  | 17,498 |  |  |  | 17,721 |  |  |  | 17,571 |  |  |  | 17,625 |  |  |  | 17,708 |
Boston Properties, Inc.’s share of shares/units for Diluted FFO |  |  | 154,331 |  |  |  | 154,214 |  |  |  | 153,991 |  |  |  | 154,136 |  |  |  | 153,860 |
Boston Properties, Inc.’s percentage share of Diluted FFO |  |  | 89.82 | % |  |  | 89.69 | % |  |  | 89.76 | % |  |  | 89.74 | % |  |  | 89.68 | %

11

##### Table of Contents

SECOND QUARTER 2017

FUNDS AVAILABLE FOR DISTRIBUTION (FAD)

(in thousands, except for ratio amounts)

|  | Three Months Ended |
|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 97,083 |  |  | $ | 147,214 |  |  | $ | 76,753 |  |  | $ | 96,597 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred dividends |  |  | 2,625 |  |  |  | 2,625 |  |  |  | 2,704 |  |  |  | 2,589 |  |  |  | 2,589 |
Noncontrolling interest - common units of the Operating Partnership |  |  | 15,473 |  |  |  | 11,432 |  |  |  | 17,097 |  |  |  | 9,387 |  |  |  | 11,357 |
Noncontrolling interests in property partnerships |  |  | 15,203 |  |  |  | 4,424 |  |  |  | (2,121 | ) |  |  | (17,225 | ) |  |  | 6,814 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on sales of real estate |  |  | 3,767 |  |  |  | 133 |  |  |  | — |  |  |  | 12,983 |  |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 115,431 |  |  |  | 164,894 |  |  |  | 58,521 |  |  |  | 117,357 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  |  | 151,919 |  |  |  | 159,205 |  |  |  | 178,032 |  |  |  | 203,748 |  |  |  | 153,175 |
Noncontrolling interests in property partnerships’ share of depreciation and amortization |  |  | (19,327 | ) |  |  | (21,415 | ) |  |  | (27,256 | ) |  |  | (40,907 | ) |  |  | (19,369 | )
BXP’s share of depreciation and amortization from unconsolidated joint ventures |  |  | 9,629 |  |  |  | 9,041 |  |  |  | 8,692 |  |  |  | 9,128 |  |  |  | 4,618 |
Corporate-related depreciation and amortization |  |  | (486 | ) |  |  | (525 | ) |  |  | (449 | ) |  |  | (393 | ) |  |  | (362 | )
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gain on sale of investment in unconsolidated joint venture |  |  | — |  |  |  | — |  |  |  | 59,370 |  |  |  | — |  |  |  | — |
Noncontrolling interests in property partnerships |  |  | 15,203 |  |  |  | 4,424 |  |  |  | (2,121 | ) |  |  | (17,225 | ) |  |  | 6,814 |
Preferred dividends |  |  | 2,625 |  |  |  | 2,625 |  |  |  | 2,704 |  |  |  | 2,589 |  |  |  | 2,589 |
Basic FFO |  |  | 287,150 |  |  |  | 254,688 |  |  |  | 263,960 |  |  |  | 244,733 |  |  |  | 246,016 |
Straight-line rent |  |  | (3,060 | ) |  |  | (12,023 | ) |  |  | (14,711 | ) |  |  | (11,107 | ) |  |  | 6,503 |
Partners’ share of straight-line rent from consolidated joint ventures |  |  | (3,326 | ) |  |  | 590 |  |  |  | 1,103 |  |  |  | 707 |  |  |  | 718 |
BXP’s share of straight-line rent from unconsolidated joint ventures |  |  | (2,435 | ) |  |  | (3,563 | ) |  |  | (3,696 | ) |  |  | (3,285 | ) |  |  | (1,787 | )
Lease transaction costs that qualify as rent inducements (1) |  |  | 115 |  |  |  | 682 |  |  |  | 487 |  |  |  | 861 |  |  |  | 2,200 |
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (1) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (1) |  |  | 223 |  |  |  | 132 |  |  |  | 43 |  |  |  | 15 |  |  |  | — |
Fair value lease revenue (2) |  |  | (5,464 | ) |  |  | (5,390 | ) |  |  | (6,840 | ) |  |  | (6,547 | ) |  |  | (8,808 | )
Partners’ share of fair value lease revenue from consolidated joint ventures (2) |  |  | 1,580 |  |  |  | 1,575 |  |  |  | 2,194 |  |  |  | 2,084 |  |  |  | 3,031 |
BXP’s share of fair value lease revenue from unconsolidated joint ventures (2) |  |  | (492 | ) |  |  | (493 | ) |  |  | (494 | ) |  |  | (511 | ) |  |  | 1 |
Non-cash losses (gains) from early extinguishments of debt |  |  | (14,444 | ) |  |  | — |  |  |  | — |  |  |  | 371 |  |  |  | — |
Partners’ share of non-cash losses (gains) from early extinguishments of debt from consolidated joint ventures |  |  | 5,878 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s share of non-cash losses (gains) from early extinguishments of debt from unconsolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Non-cash termination income adjustment (fair value lease amounts) |  |  | (525 | ) |  |  | (403 | ) |  |  | 7 |  |  |  | — |  |  |  | 141 |
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures |  |  | 210 |  |  |  | 161 |  |  |  | (3 | ) |  |  | — |  |  |  | (41 | )
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures |  |  | (214 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Straight-line ground rent expense adjustment (3) |  |  | 398 |  |  |  | 639 |  |  |  | 998 |  |  |  | 1,031 |  |  |  | 935 |
Stock-based compensation |  |  | 8,435 |  |  |  | 10,802 |  |  |  | 7,621 |  |  |  | 7,643 |  |  |  | 7,578 |
Non-real estate depreciation |  |  | 486 |  |  |  | 525 |  |  |  | 449 |  |  |  | 393 |  |  |  | 362 |
Impairment loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,783 |  |  |  | — |
Fair value interest adjustment and hedge amortization |  |  | (7,319 | ) |  |  | (10,323 | ) |  |  | (10,145 | ) |  |  | (10,378 | ) |  |  | (11,272 | )
Partners’ share of fair value interest adjustment and hedge amortization from consolidated joint ventures |  |  | 3,464 |  |  |  | 4,627 |  |  |  | 4,598 |  |  |  | 4,569 |  |  |  | 4,540 |
BXP’s share of fair value interest adjustment and hedge amortization from unconsolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2nd generation tenant improvements and leasing commissions |  |  | (85,427 | ) |  |  | (48,730 | ) |  |  | (75,708 | ) |  |  | (69,742 | ) |  |  | (74,719 | )
Partners’ share of 2nd generation tenant improvements and leasing commissions from consolidated joint ventures |  |  | 200 |  |  |  | 123 |  |  |  | 449 |  |  |  | 805 |  |  |  | 1,247 |
BXP’s share of 2nd generation tenant improvements and leasing commissions from unconsolidated joint ventures |  |  | (159 | ) |  |  | (1,164 | ) |  |  | (1,472 | ) |  |  | (18 | ) |  |  | (8,616 | )
Unearned portion of capitalized fees from consolidated joint ventures |  |  | 607 |  |  |  | 537 |  |  |  | 1,787 |  |  |  | 250 |  |  |  | 2,697 |
Maintenance capital expenditures (4) |  |  | (11,643 | ) |  |  | (10,677 | ) |  |  | (16,334 | ) |  |  | (11,889 | ) |  |  | (9,654 | )
Partners’ share of maintenance capital expenditures from consolidated joint ventures (4) |  |  | 1,004 |  |  |  | 2,129 |  |  |  | 1,197 |  |  |  | 377 |  |  |  | 422 |
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures (4) |  |  | (17 | ) |  |  | (211 | ) |  |  | (437 | ) |  |  | (283 | ) |  |  | (112 | )
Hotel improvements, equipment upgrades and replacements |  |  | (2,502 | ) |  |  | (6,231 | ) |  |  | (3,870 | ) |  |  | (2,137 | ) |  |  | (434 | )
Funds available for distribution to common shareholders and common unitholders (FAD) (A) |  | $ | 172,723 |  |  | $ | 178,002 |  |  | $ | 151,183 |  |  | $ | 149,725 |  |  | $ | 160,948 |
Distributions to common shareholders and unitholders (excluding any special distributions) (B) |  | $ | 129,055 |  |  | $ | 129,040 |  |  | $ | 128,930 |  |  | $ | 111,739 |  |  | $ | 111,737 |
FAD Payout Ratio (B÷A) |  |  | 74.72 | % |  |  | 72.49 | % |  |  | 85.28 | % |  |  | 74.63 | % |  |  | 69.42 | %

(1) | Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the period the lease commences.

(2) | Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

(3) | Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the Company’s 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2020 with no payments thereafter. The Company is recognizing these amounts on a straight-line basis over the 99-year term of the ground and air rights lease. See page 7.

(4) | Maintenance capital expenditures do not include planned capital expenditures related to acquisitions and repositioning capital expenditures. See page 25 for additional detail.

12

##### Table of Contents

SECOND QUARTER 2017

INTEREST COVERAGE RATIOS

(in thousands, except for ratio amounts)

|  | Three Months Ended |
|  | 30-Jun-17 |  |  | 31-Mar-17 |  |  | 31-Dec-16 |  |  | 30-Sep-16 |  |  | 30-Jun-16 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 97,083 |  |  | $ | 147,214 |  |  | $ | 76,753 |  |  | $ | 96,597 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred dividends |  |  | 2,625 |  |  |  | 2,625 |  |  |  | 2,704 |  |  |  | 2,589 |  |  |  | 2,589 |
Noncontrolling interest - common units of the Operating Partnership |  |  | 15,473 |  |  |  | 11,432 |  |  |  | 17,097 |  |  |  | 9,387 |  |  |  | 11,357 |
Noncontrolling interests in property partnerships |  |  | 15,203 |  |  |  | 4,424 |  |  |  | (2,121 | ) |  |  | (17,225 | ) |  |  | 6,814 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Gains on sales of real estate |  |  | 3,767 |  |  |  | 133 |  |  |  | — |  |  |  | 12,983 |  |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 115,431 |  |  |  | 164,894 |  |  |  | 58,521 |  |  |  | 117,357 |
Noncontrolling interests in property partnerships |  |  | (15,203 | ) |  |  | (4,424 | ) |  |  | 2,121 |  |  |  | 17,225 |  |  |  | (6,814 | )
Interest expense |  |  | 95,143 |  |  |  | 95,534 |  |  |  | 97,896 |  |  |  | 104,641 |  |  |  | 105,003 |
Partners’ share of interest expense from consolidated joint ventures |  |  | (16,401 | ) |  |  | (17,259 | ) |  |  | (17,579 | ) |  |  | (17,460 | ) |  |  | (17,177 | )
BXP’s share of interest expense from unconsolidated joint ventures |  |  | 3,822 |  |  |  | 3,749 |  |  |  | 3,654 |  |  |  | 4,025 |  |  |  | 4,010 |
Depreciation and amortization expense |  |  | 151,919 |  |  |  | 159,205 |  |  |  | 178,032 |  |  |  | 203,748 |  |  |  | 153,175 |
Noncontrolling interests in property partnerships’ share of depreciation and amortization |  |  | (19,327 | ) |  |  | (21,415 | ) |  |  | (27,256 | ) |  |  | (40,907 | ) |  |  | (19,369 | )
BXP’s share of depreciation and amortization from unconsolidated joint ventures |  |  | 9,629 |  |  |  | 9,041 |  |  |  | 8,692 |  |  |  | 9,128 |  |  |  | 4,618 |
Gain on sale of investment in unconsolidated joint venture |  |  | — |  |  |  | — |  |  |  | (59,370 | ) |  |  | — |  |  |  | — |
Non-cash losses (gains) from early extinguishments of debt |  |  | (14,444 | ) |  |  | — |  |  |  | — |  |  |  | 371 |  |  |  | — |
Partners’ share of non-cash losses (gains) from early extinguishments of debt from consolidated joint ventures |  |  | 5,878 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s share of non-cash losses (gains) from early extinguishments of debt from unconsolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Impairment loss |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,783 |  |  |  | — |
Non-cash termination income adjustment (fair value lease amounts) |  |  | (525 | ) |  |  | (403 | ) |  |  | 7 |  |  |  | — |  |  |  | 141 |
Partners’ share of non-cash termination income adjustment (fair value lease amounts) from consolidated joint ventures |  |  | 210 |  |  |  | 161 |  |  |  | (3 | ) |  |  | — |  |  |  | (41 | )
BXP’s share of non-cash termination income adjustment (fair value lease amounts) from unconsolidated joint ventures |  |  | (214 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Stock-based compensation |  |  | 8,435 |  |  |  | 10,802 |  |  |  | 7,621 |  |  |  | 7,643 |  |  |  | 7,578 |
Straight-line ground rent expense adjustment (1) |  |  | 398 |  |  |  | 639 |  |  |  | 998 |  |  |  | 1,031 |  |  |  | 935 |
Straight-line rent |  |  | (3,060 | ) |  |  | (12,023 | ) |  |  | (14,711 | ) |  |  | (11,107 | ) |  |  | 6,503 |
Partners’ share of straight-line rent from consolidated joint ventures |  |  | (3,326 | ) |  |  | 590 |  |  |  | 1,103 |  |  |  | 707 |  |  |  | 718 |
BXP’s share of straight-line rent from unconsolidated joint ventures |  |  | (2,435 | ) |  |  | (3,563 | ) |  |  | (3,696 | ) |  |  | (3,285 | ) |  |  | (1,787 | )
Lease transaction costs that qualify as rent inducements (2) |  |  | 115 |  |  |  | 682 |  |  |  | 487 |  |  |  | 861 |  |  |  | 2,200 |
Partners’ share of lease transaction costs that qualify as rent inducements from consolidated joint ventures (2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s share of lease transaction costs that qualify as rent inducements from unconsolidated joint ventures (2) |  |  | 223 |  |  |  | 132 |  |  |  | 43 |  |  |  | 15 |  |  |  | — |
Fair value lease revenue (3) |  |  | (5,464 | ) |  |  | (5,390 | ) |  |  | (6,840 | ) |  |  | (6,547 | ) |  |  | (8,808 | )
Partners’ share of fair value lease revenue from consolidated joint ventures (3) |  |  | 1,580 |  |  |  | 1,575 |  |  |  | 2,194 |  |  |  | 2,084 |  |  |  | 3,031 |
BXP’s share of fair value lease revenue from unconsolidated joint ventures (3) |  |  | (492 | ) |  |  | (493 | ) |  |  | (494 | ) |  |  | (511 | ) |  |  | 1 |
Subtotal (A) |  | $ | 359,704 |  |  | $ | 332,571 |  |  | $ | 337,793 |  |  | $ | 331,966 |  |  | $ | 351,274 |
Divided by: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | $ | 95,143 |  |  | $ | 95,534 |  |  | $ | 97,896 |  |  | $ | 104,641 |  |  | $ | 105,003 |
Partners’ share of interest expense from consolidated joint ventures |  |  | (16,401 | ) |  |  | (17,259 | ) |  |  | (17,579 | ) |  |  | (17,460 | ) |  |  | (17,177 | )
BXP’s share of interest expense from unconsolidated joint ventures |  |  | 3,822 |  |  |  | 3,749 |  |  |  | 3,654 |  |  |  | 4,025 |  |  |  | 4,010 |
Fair value interest adjustment |  |  | 7,319 |  |  |  | 10,323 |  |  |  | 10,145 |  |  |  | 10,378 |  |  |  | 11,272 |
Partners’ share of fair value interest adjustment from consolidated joint ventures |  |  | (3,464 | ) |  |  | (4,627 | ) |  |  | (4,598 | ) |  |  | (4,569 | ) |  |  | (4,540 | )
BXP’s share of fair value interest adjustment from unconsolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Amortization of financing costs |  |  | (2,442 | ) |  |  | (1,967 | ) |  |  | (1,964 | ) |  |  | (1,889 | ) |  |  | (1,704 | )
Partners’ share of amortization of financing costs from consolidated joint ventures |  |  | 206 |  |  |  | 9 |  |  |  | 39 |  |  |  | 38 |  |  |  | 38 |
BXP’s share of amortization of financing costs from unconsolidated joint ventures |  |  | (102 | ) |  |  | (100 | ) |  |  | (100 | ) |  |  | (113 | ) |  |  | (112 | )
Adjusted interest expense excluding capitalized interest (B) |  |  | 84,081 |  |  |  | 85,662 |  |  |  | 87,493 |  |  |  | 95,051 |  |  |  | 96,790 |
Capitalized interest |  |  | 14,283 |  |  |  | 12,345 |  |  |  | 10,281 |  |  |  | 9,788 |  |  |  | 10,222 |
Partners’ share of capitalized interest from consolidated joint ventures |  |  | (238 | ) |  |  | (251 | ) |  |  | (203 | ) |  |  | (21 | ) |  |  | — |
BXP’s share of capitalized interest from unconsolidated joint ventures |  |  | (6 | ) |  |  | (6 | ) |  |  | — |  |  |  | — |  |  |  | — |
Adjusted interest expense including capitalized interest (C) |  | $ | 98,120 |  |  | $ | 97,750 |  |  | $ | 97,571 |  |  | $ | 104,818 |  |  | $ | 107,012 |
Interest Coverage Ratio (excluding capitalized interest) (A÷B) (4) |  |  | 4.28 |  |  |  | 3.88 |  |  |  | 3.86 |  |  |  | 3.49 |  |  |  | 3.63 |
Interest Coverage Ratio (including capitalized interest) (A÷C) (4) |  |  | 3.67 |  |  |  | 3.40 |  |  |  | 3.46 |  |  |  | 3.17 |  |  |  | 3.28 |

(1) | Includes the straight-line impact of the Company’s 99-year ground and air rights lease related to the 100 Clarendon Street garage and Back Bay Transit Station. The Company has allocated contractual ground lease payments aggregating approximately $34.4 million, which it expects to incur by the end of 2020 with no payments thereafter. The Company is recognizing these amounts on a straight-line basis over the 99-year term of the ground and air rights lease. See page 7.

(2) | Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions.

(3) | Represents the net adjustment for above- and below-market leases that are being amortized over the terms of the respective leases in place at the property acquisition dates.

(4) | The Company believes that the presentation of its Interest Coverage Ratio provides investors with useful information about the Company’s financial condition because it measures the margin it has for paying interest expense as of a certain date. In addition, by analyzing interest coverage ratios over a period of time, trends may emerge that provide investors a better sense of whether a company’s financial condition is improving or declining. The ratios may also be used to compare the financial condition of different companies, which can help when making an investment decision. The Company presents its Interest Coverage Ratio in two ways—including capitalized interest and excluding capitalized interest. GAAP requires the capitalization of interest expense during development. Therefore, for a company like Boston Properties, Inc. that is an active developer of real estate, presenting the Interest Coverage Ratio (excluding capitalized interest) provides an alternative measure of financial condition that may be more indicative of the Company’s ability to meet its interest expense obligations and therefore its overall financial condition.

13

##### Table of Contents

SECOND QUARTER 2017

CAPITAL STRUCTURE

(in thousands, except percentages)

Consolidated Debt

|  | Aggregate Principal June 30, 2017 |
Mortgage Notes Payable |  | $ | 3,022,907 |
Unsecured Line of Credit |  |  | — |
Delayed Draw Term Loan |  |  | — |
Unsecured Senior Notes, at face value |  |  | 7,300,000 |
Subtotal |  |  | 10,322,907 |
Discount on Unsecured Senior Notes |  |  | (17,474 | )
Deferred Financing Costs, Net |  |  | (68,794 | )
Consolidated Debt |  | $ | 10,236,639 |

Boston Properties Limited Partnership Unsecured Senior Notes (1)

Settlement Date |  | Maturity Date |  |  | Principal |  |  | Effective Yield (on issue date) |  |  | Coupon |  |  | Public Offering Price |  |  | Discount |  |  | Deferred Financing Costs, Net |  |  | Unsecured Senior Notes, Net |
8/17/2016 |  |  | 10/1/2026 |  |  | $ | 1,000,000 |  |  |  | 3.495 | % |  |  | 2.750 | % |  |  | 99.271 | % |  | $ | 6,765 |  |  | $ | 7,489 |  |  | $ | 985,746 |
1/20/2016 |  |  | 2/1/2026 |  |  |  | 1,000,000 |  |  |  | 3.766 | % |  |  | 3.650 | % |  |  | 99.708 | % |  |  | 2,568 |  |  |  | 6,991 |  |  |  | 990,441 |
6/27/2013 |  |  | 2/1/2024 |  |  |  | 700,000 |  |  |  | 3.916 | % |  |  | 3.800 | % |  |  | 99.694 | % |  |  | 1,413 |  |  |  | 3,702 |  |  |  | 694,885 |
4/11/2013 |  |  | 9/1/2023 |  |  |  | 500,000 |  |  |  | 3.279 | % |  |  | 3.125 | % |  |  | 99.379 | % |  |  | 1,972 |  |  |  | 2,479 |  |  |  | 495,549 |
6/11/2012 |  |  | 2/1/2023 |  |  |  | 1,000,000 |  |  |  | 3.954 | % |  |  | 3.850 | % |  |  | 99.779 | % |  |  | 1,261 |  |  |  | 4,365 |  |  |  | 994,374 |
11/10/2011 |  |  | 11/15/2018 |  |  |  | 850,000 |  |  |  | 3.853 | % |  |  | 3.700 | % |  |  | 99.767 | % |  |  | 426 |  |  |  | 2,616 |  |  |  | 846,958 |
11/18/2010 |  |  | 5/15/2021 |  |  |  | 850,000 |  |  |  | 4.289 | % |  |  | 4.125 | % |  |  | 99.260 | % |  |  | 2,640 |  |  |  | 1,891 |  |  |  | 845,469 |
4/19/2010 |  |  | 11/15/2020 |  |  |  | 700,000 |  |  |  | 5.708 | % |  |  | 5.625 | % |  |  | 99.891 | % |  |  | 290 |  |  |  | 1,293 |  |  |  | 698,417 |
10/9/2009 |  |  | 10/15/2019 |  |  |  | 700,000 |  |  |  | 5.967 | % |  |  | 5.875 | % |  |  | 99.931 | % |  |  | 139 |  |  |  | 1,344 |  |  |  | 698,517 |
|  |  |  |  |  | $ | 7,300,000 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 17,474 |  |  | $ | 32,170 |  |  | $ | 7,250,356 |

Equity

|  | Shares/Units Outstanding as of 6/30/2017 |  |  | Common Stock Equivalents |  |  | Equivalent Value (2) |
Common Stock |  |  | 154,308 |  |  |  | 154,308 |  |  | $ | 18,982,970 |
Common Operating Partnership Units |  |  | 17,641 |  |  |  | 17,641 |  |  |  | 2,170,196 |
5.25% Series B Cumulative Redeemable Preferred Stock (non-callable through March 27, 2018) |  |  | 80 |  |  |  | — |  |  |  | 200,000 |
Total Equity |  |  |  |  |  |  | 171,949 |  |  | $ | 21,353,166 |
Consolidated Debt |  |  |  |  |  |  |  |  |  | $ | 10,236,639 |
Add: |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of unconsolidated joint venture debt (3) |  |  |  |  |  |  |  |  |  |  | 317,724 |
Less: |  |  |  |  |  |  |  |  |  |  |  |
Partners’ share of consolidated debt (4) |  |  |  |  |  |  |  |  |  |  | 1,211,485 |
BXP’s Share of Debt (5) |  |  |  |  |  |  |  |  |  | $ | 9,342,878 |
Consolidated Market Capitalization |  |  |  |  |  |  |  |  |  | $ | 31,589,805 |
BXP’s Share of Market Capitalization (5) |  |  |  |  |  |  |  |  |  | $ | 30,696,044 |

(1) | All unsecured senior notes are rated A- (stable), BBB+ (stable) and Baa2 (positive) by S&P, Fitch and Moody’s, respectively.

(2) | Values based on June 30, 2017 closing price of $123.02 per share of common stock, except the Series B Preferred Stock is valued at its fixed liquidation preference.

(3) | Amount is calculated based on the Company’s percentage ownership interest in the unconsolidated joint venture entities. For additional detail, see page 17.

(4) | Amount is calculated based on the outside partners’ percentage ownership interest in the consolidated joint venture entities. For additional detail, see page 19.

(5) | For the Company’s definitions, see pages 47-48.

14

##### Table of Contents

SECOND QUARTER 2017

DEBT ANALYSIS (1)

as of June 30, 2017

(dollars in thousands)

Debt Maturities and Principal Payments

|  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | Thereafter |  |  | Total |
Floating Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage Notes Payable |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Unsecured Line of Credit |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Unsecured Term Loan |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total Floating Rate Debt |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Fixed Rate Debt: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
767 Fifth Avenue (The GM Building) (60% ownership) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 2,300,000 |  |  | $ | 2,300,000 |
601 Lexington Avenue (55% ownership) |  |  | 6,603 |  |  |  | 13,684 |  |  |  | 14,349 |  |  |  | 15,045 |  |  |  | 15,776 |  |  |  | 614,710 |  |  |  | 680,167 |
New Dominion Technology Park, Building One |  |  | 1,465 |  |  |  | 3,100 |  |  |  | 3,340 |  |  |  | 3,598 |  |  |  | 22,906 |  |  |  | — |  |  |  | 34,409 |
University Place |  |  | 878 |  |  |  | 1,849 |  |  |  | 1,981 |  |  |  | 2,123 |  |  |  | 1,500 |  |  |  | — |  |  |  | 8,331 |
Mortgage Notes Payable |  |  | 8,946 |  |  |  | 18,633 |  |  |  | 19,670 |  |  |  | 20,766 |  |  |  | 40,182 |  |  |  | 2,914,710 |  |  |  | 3,022,907 |
Deferred Financing Costs, Net |  |  | (1,964 | ) |  |  | (3,930 | ) |  |  | (3,930 | ) |  |  | (3,930 | ) |  |  | (3,840 | ) |  |  | (19,030 | ) |  |  | (36,624 | )
Mortgage Notes Payable, Net |  | $ | 6,982 |  |  | $ | 14,703 |  |  | $ | 15,740 |  |  | $ | 16,836 |  |  | $ | 36,342 |  |  | $ | 2,895,680 |  |  | $ | 2,986,283 |
Unsecured Senior Notes, Face Amount |  | $ | — |  |  | $ | 850,000 |  |  | $ | 700,000 |  |  | $ | 700,000 |  |  | $ | 850,000 |  |  | $ | 4,200,000 |  |  | $ | 7,300,000 |
Discount Amortization |  |  | (1,334 | ) |  |  | (2,696 | ) |  |  | (2,503 | ) |  |  | (2,528 | ) |  |  | (2,063 | ) |  |  | (6,350 | ) |  |  | (17,474 | )
Deferred Financing Costs, Net |  |  | (3,093 | ) |  |  | (6,019 | ) |  |  | (5,036 | ) |  |  | (4,510 | ) |  |  | (3,648 | ) |  |  | (9,864 | ) |  |  | (32,170 | )
Unsecured Senior Notes, Net |  | $ | (4,427 | ) |  | $ | 841,285 |  |  | $ | 692,461 |  |  | $ | 692,962 |  |  | $ | 844,289 |  |  | $ | 4,183,786 |  |  | $ | 7,250,356 |
Total Fixed Rate Debt |  | $ | 2,555 |  |  | $ | 855,988 |  |  | $ | 708,201 |  |  | $ | 709,798 |  |  | $ | 880,631 |  |  | $ | 7,079,466 |  |  | $ | 10,236,639 |
Consolidated Debt |  | $ | 2,555 |  |  | $ | 855,988 |  |  | $ | 708,201 |  |  | $ | 709,798 |  |  | $ | 880,631 |  |  | $ | 7,079,466 |  |  | $ | 10,236,639 |
% of Consolidated Debt |  |  | 0.03 | % |  |  | 8.36 | % |  |  | 6.92 | % |  |  | 6.93 | % |  |  | 8.60 | % |  |  | 69.16 | % |  |  | 100.00 | %
Balloon Payments |  | $ | — |  |  | $ | 850,000 |  |  | $ | 700,000 |  |  | $ | 700,000 |  |  | $ | 872,906 |  |  | $ | 7,110,648 |  |  | $ | 10,233,554 |
Scheduled Principal Amortization |  | $ | 8,946 |  |  | $ | 18,633 |  |  | $ | 19,670 |  |  | $ | 20,766 |  |  | $ | 17,276 |  |  | $ | 4,062 |  |  | $ | 89,353 |
GAAP Weighted Average Floating Rate Debt (2) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
GAAP Weighted Average Fixed Rate Debt (2) |  |  | 5.51 | % |  |  | 3.89 | % |  |  | 5.96 | % |  |  | 5.70 | % |  |  | 4.39 | % |  |  | 3.78 | % |  |  | 4.13 | %
Total GAAP Weighted Average Rate (2) |  |  | 5.51 | % |  |  | 3.89 | % |  |  | 5.96 | % |  |  | 5.70 | % |  |  | 4.39 | % |  |  | 3.78 | % |  |  | 4.13 | %
Total Stated Weighted Average Rate |  |  | 5.44 | % |  |  | 3.77 | % |  |  | 5.87 | % |  |  | 5.63 | % |  |  | 4.32 | % |  |  | 3.67 | % |  |  | 4.03 | %

Unsecured Credit Facility—Matures April 24, 2022

|  | Facility |  |  | Outstanding at 6/30/2017 |  |  | Letters of Credit |  |  | Remaining Capacity at 6/30/2017 |
Unsecured Line of Credit |  | $ | 1,500,000 |  |  | $ | — |  |  | $ | 1,530 |  |  | $ | 1,498,470 |
Unsecured Term Loan |  | $ | 500,000 |  |  | $ | — |  |  |  | N/A |  |  | $ | 500,000 |
Unsecured and Secured Debt Analysis |  |  |  |  |  |  |  |  |  |  |  |
|  | % of Total Debt |  |  | Stated Weighted Average Rate |  |  | GAAP Weighted Average Rate |  |  | Weighted Average Maturity (years) |
Unsecured Debt |  |  | 70.83 | % |  |  | 4.12 | % |  |  | 4.21 | % |  |  | 5.4 |
Secured Debt |  |  | 29.17 | % |  |  | 3.79 | % |  |  | 3.96 | % |  |  | 8.7 |
Consolidated Debt |  |  | 100.00 | % |  |  | 4.03 | % |  |  | 4.13 | % |  |  | 6.4 |

Floating and Fixed Rate Debt Analysis

|  | % of Total Debt |  |  | Stated Weighted Average Rate |  |  | GAAP Weighted Average Rate |  |  | Weighted Average Maturity (years) |
Floating Rate Debt |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Fixed Rate Debt |  |  | 100.00 | % |  |  | 4.03 | % |  |  | 4.13 | % |  |  | 6.4 |
Consolidated Debt |  |  | 100.00 | % |  |  | 4.03 | % |  |  | 4.13 | % |  |  | 6.4 |

(1) | Excludes unconsolidated joint ventures. For information on BXP’s share of unconsolidated joint venture debt, see page 17.

(2) | The GAAP interest rate differs from the stated interest rate due to the inclusion of the amortization of financing charges and the effects of hedging transactions.

15

##### Table of Contents

SECOND QUARTER 2017

SENIOR UNSECURED DEBT COVENANT COMPLIANCE RATIOS

(dollars in thousands)

In the fourth quarter of 2002, the Company’s Operating Partnership (Boston Properties Limited Partnership) received investment grade ratings on its senior unsecured debt securities and thereafter issued unsecured notes. The notes were issued under an indenture, dated as of December 13, 2002, by and between Boston Properties Limited Partnership and The Bank of New York Mellon Trust Company, N.A., as trustee, as supplemented from time to time (the “Indenture”), which, among other things, requires us to comply with the following limitations on incurrence of debt: Limitation on Outstanding Debt; Limitation on Secured Debt; Ratio of Annualized Consolidated EBITDA to Annualized Interest Expense; and Maintenance of Unencumbered Assets. Compliance with these restrictive covenants requires us to apply specialized terms the meanings of which are described in detail in our filings with the SEC, and to calculate ratios in the manner prescribed by the Indenture.

This section presents such ratios as of June 30, 2017 to show that the Company’s Operating Partnership was in compliance with the terms of the Indenture, which has been filed with the SEC. Management is not presenting these ratios and the related calculations for any other purpose or for any other period, and is not intending for these measures to otherwise provide information to investors about the Company’s financial condition or results of operations. Investors should not rely on these measures other than for purposes of testing our compliance with the Indenture. This section also presents certain other indenture-related data that we believe assists investors in evaluating the Company’s unsecured debt securities.

|  |  |  |  | June 30, 2017 |
Total Assets: |  |  |  |  |  |  |  |
Capitalized Property Value (1) |  |  |  |  |  | $ | 23,896,187 |
Cash and Cash Equivalents |  |  |  |  |  |  | 492,435 |
Investments in Securities |  |  |  |  |  |  | 26,781 |
Undeveloped Land, at Cost (including BXP’s share of unconsolidated joint ventures) |  |  |  |  |  |  | 296,456 |
Development in Process, at Cost (including BXP’s share of unconsolidated joint ventures) |  |  |  |  |  |  | 1,611,719 |
Total Assets |  |  |  |  |  | $ | 26,323,578 |
Unencumbered Assets |  |  |  |  |  | $ | 20,866,098 |
Consolidated Secured Debt (Fixed and Variable) (2) |  |  |  |  |  | $ | 3,073,830 |
Unconsolidated Joint Venture Debt (3) |  |  |  |  |  |  | 318,857 |
Contingent Liabilities & Letters of Credit |  |  |  |  |  |  | 7,379 |
Unsecured Debt (4) |  |  |  |  |  |  | 7,300,000 |
Total Outstanding Debt |  |  |  |  |  | $ | 10,700,066 |
Consolidated EBITDA: |  |  |  |  |  |  |  |
Income before Gains on Sales of Real Estate (per Consolidated Income Statement) |  |  |  |  |  | $ | 163,243 |
Subtract: Income from Unconsolidated Joint Ventures (per Consolidated Income Statement) |  |  |  |  |  |  | (3,108 | )
Subtract: Gains from Investments in Securities (per Consolidated Income Statement) |  |  |  |  |  |  | (730 | )
Subtract: Gains from Early Extinguishments of Debt (per Consolidated Income Statement) |  |  |  |  |  |  | (14,354 | )
Add: Interest Expense (per Consolidated Income Statement) |  |  |  |  |  |  | 95,143 |
Add: Depreciation and Amortization (per Consolidated Income Statement) |  |  |  |  |  |  | 151,919 |
EBITDA |  |  |  |  |  |  | 392,113 |
Add: BXP’s share of unconsolidated joint venture EBITDA |  |  |  |  |  |  | 16,290 |
Consolidated EBITDA |  |  |  |  |  | $ | 408,403 |
Adjusted Interest Expense: |  |  |  |  |  |  |  |
Interest Expense (per Consolidated Income Statement) |  |  |  |  |  | $ | 95,143 |
Add: BXP’s share of unconsolidated joint venture interest expense |  |  |  |  |  |  | 3,822 |
Less: Amortization of financing costs (including BXP’s share of unconsolidated joint ventures) |  |  |  |  |  |  | (2,544 | )
Less: Interest expense funded by construction loan draws |  |  |  |  |  |  | — |
Adjusted Interest Expense |  |  |  |  |  | $ | 96,421 |
|  | Test |  |  | Actual |
Covenant Ratios and Related Data |  |  |  |  |  |  |  |
Total Outstanding Debt/Total Assets |  |  | Less than 60% |  |  |  | 40.6 | %
Secured Debt/Total Assets |  |  | Less than 50% |  |  |  | 12.9 | %
Interest Coverage (Annualized Consolidated EBITDA to Annualized Interest Expense) |  |  | Greater than 1.50x |  |  |  | 4.24 |
Unencumbered Assets/ Unsecured Debt |  |  | Greater than 150% |  |  |  | 285.8 | %
Unencumbered Consolidated Property EBITDA (5) |  |  |  |  |  | $ | 338,436 |
Unencumbered Interest Coverage (Unencumbered Consolidated Property EBITDA to Unsecured Interest Expense) |  |  |  |  |  |  | 4.50 |
% of Unencumbered Consolidated Property EBITDA to Consolidated EBITDA |  |  |  |  |  |  | 82.9 | %
# of in-service unencumbered properties |  |  |  |  |  |  | 152 |

(1) | Capitalized Property Value is determined for each property and is the greater of (A) annualized EBITDA capitalized at an 8.0% rate for CBD properties and a 9.0% rate for non-CBD properties, and (B) the undepreciated book value as determined under GAAP.

(2) | Includes capital lease obligations of $50,923 and deferred financing costs, net of $36,624.

(3) | Excludes aggregate deferred financing costs, net of $1,133.

(4) | Excludes aggregate debt discount of $17,474 and deferred financing costs, net of $32,170.

(5) | Unencumbered Consolidated Property EBITDA is a non-GAAP financial measure equal to Consolidated EBITDA excluding corporate revenue and expenses, encumbered consolidated Property EBITDA, EBITDA from land and properties that have either been disposed of or not fully placed in-service and items that, in the Company’s view, are not representative of a property’s standard ongoing performance, such as termination income and other similar items. For the three months ended June 30, 2017, these excluded amounts were approximately $(18,728), $76,490, $(2,038) and $14,243, respectively.

16

##### Table of Contents

SECOND QUARTER 2017

UNCONSOLIDATED JOINT VENTURES (1)

as of June 30, 2017

(dollars in thousands)

Balance Sheet Information

Property |  | BXP’s Nominal Ownership |  |  | Net Equity |  |  | Mortgage/ Construction Loans Payable, Net |
540 Madison Avenue |  |  | 60.00 | % |  | $ | 68,325 |  |  | $ | 71,888 |
Market Square North |  |  | 50.00 | % |  |  | (7,490 | ) |  |  | 61,006 |
Metropolitan Square |  |  | 20.00 | % |  |  | 2,496 |  |  |  | 32,929 |
901 New York Avenue |  |  | 25.00 | % |  |  | (9,719 | ) |  |  | 55,915 |
Wisconsin Place Parking Facility |  |  | 33.33 | % |  |  | 40,704 |  |  |  | — |
Annapolis Junction (2) |  |  | 50.00 | % |  |  | 19,392 |  |  |  | 44,745 |
500 North Capitol Street, N.W. |  |  | 30.00 | % |  |  | (3,396 | ) |  |  | 31,395 |
Colorado Center |  |  | 49.80 | % |  |  | 514,747 |  |  |  | — |
The Hub on Causeway—Podium |  |  | 50.00 | % |  |  | 45,616 |  |  |  | — |
The Hub on Causeway—Hotel |  |  | 50.00 | % |  |  | 1,561 |  |  |  | — |
The Hub on Causeway—Residential |  |  | 50.00 | % |  |  | 23,799 |  |  |  | — |
1001 6th Street |  |  | 50.00 | % |  |  | 42,428 |  |  |  | — |
Dock 72 |  |  | 50.00 | % |  |  | 55,646 |  |  |  | — |
1265 Main Street |  |  | 50.00 | % |  |  | 4,654 |  |  |  | 19,846 |
|  |  |  |  |  |  | 798,763 |  |  |  |  |
Investments with deficit balances reflected within Other Liabilities |  |  |  | 20,605 |  |  |  |  |
Investment in Joint Ventures |  |  |  |  |  | $ | 819,368 |  |  | $ | 317,724 |

Debt Maturities and Principal Payments by Property

Property |  | 2017 |  |  | 2018 |  |  | 2019 |  |  | 2020 |  |  | 2021 |  |  | Thereafter |  |  | Total |
540 Madison Avenue (60%) |  | $ | — |  |  | $ | 72,000 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 72,000 |
Market Square North (50%) |  |  | 582 |  |  |  | 1,205 |  |  |  | 1,265 |  |  |  | 58,091 |  |  |  | — |  |  |  | — |  |  |  | 61,143 |
901 New York Avenue (25%) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 970 |  |  |  | 1,095 |  |  |  | 54,185 |  |  |  | 56,250 |
Metropolitan Square (20%) |  |  | 280 |  |  |  | 586 |  |  |  | 620 |  |  |  | 31,501 |  |  |  |  |  |  |  | — |  |  |  | 32,987 |
500 North Capitol Street, N.W. (30%) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 31,500 |  |  |  | 31,500 |
1265 Main Street (50%) |  |  | 186 |  |  |  | 383 |  |  |  | 398 |  |  |  | 413 |  |  |  | 429 |  |  |  | 18,238 |  |  |  | 20,047 |
Annapolis Junction Building One (50%) |  |  | 256 |  |  |  | 19,519 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 19,775 | (3)
Annapolis Junction Buildings Seven & Eight (50%) |  |  | 163 |  |  |  | 326 |  |  |  | 17,723 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 18,212 |
Annapolis Junction Building Six (50%) |  |  | 135 |  |  |  | 6,808 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 6,943 |
Dock 72 (50%) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  |  | 1,602 |  |  |  | 100,827 |  |  |  | 20,006 |  |  |  | 90,975 |  |  |  | 1,524 |  |  |  | 103,923 |  |  |  | 318,857 |
Deferred Financing Costs, Net |  |  | (188 | ) |  |  | (268 | ) |  |  | (186 | ) |  |  | (115 | ) |  |  | (77 | ) |  |  | (299 | ) |  |  | (1,133 | )
Mortgage/Construction Loans Payable, Net |  | $ | 1,414 |  |  | $ | 100,559 |  |  | $ | 19,820 |  |  | $ | 90,860 |  |  | $ | 1,447 |  |  | $ | 103,624 |  |  | $ | 317,724 |
GAAP Weighted Average Rate |  |  | 4.55 | % |  |  | 3.60 | % |  |  | 3.75 | % |  |  | 5.20 | % |  |  | 3.54 | % |  |  | 3.86 | % |  |  | 4.17 | %
% of Total Mortgage/Construction Loans Payable, Net |  |  | 0.45 | % |  |  | 31.65 | % |  |  | 6.24 | % |  |  | 28.60 | % |  |  | 0.46 | % |  |  | 32.60 | % |  |  | 100.00 | %
Balloon Payments |  | $ | — |  |  | $ | 98,032 |  |  | $ | 17,397 |  |  | $ | 88,387 |  |  | $ | — |  |  | $ | 95,437 |  |  | $ | 299,253 |
Scheduled Amortization |  | $ | 1,602 |  |  | $ | 2,795 |  |  | $ | 2,609 |  |  | $ | 2,588 |  |  | $ | 1,524 |  |  | $ | 8,486 |  |  | $ | 19,604 |

Floating and Fixed Rate Debt Analysis

|  | % of Total Debt |  |  | Stated Weighted Average Rate |  |  | GAAP Weighted Average Rate |  |  | Weighted Average Maturity (years) |
Floating Rate Debt |  |  | 36.71 | % |  |  | 3.41 | % |  |  | 3.60 | % |  |  | 1.2 |
Fixed Rate Debt |  |  | 63.29 | % |  |  | 4.44 | % |  |  | 4.50 | % |  |  | 5.9 |
Total Debt |  |  | 100.00 | % |  |  | 4.06 | % |  |  | 4.17 | % |  |  | 4.2 |

(1) | Amounts represent the Company’s share based on its ownership percentage. For additional details, see page 47.

(2) | Annapolis Junction includes four in-service properties and two undeveloped land parcels.

(3) | On April 11, 2016, a notice of event of default was received from the lender because the loan to value ratio is not in compliance with the applicable covenant in the loan agreement. On October 17, 2016, the lender notified the joint venture that it has elected to charge the default rate on the loan. The default rate is defined as LIBOR plus 5.75% per annum. Subsequently, the cash flows generated from the property have become insufficient to fund debt service payments and capital improvements necessary to lease and operate the property and the joint venture is not prepared to fund additional cash shortfalls at this time. Consequently, the joint venture is not current on making debt service payments and remains in default. The loan has one, three-year extension option, subject to certain conditions including that no event of default exists or is ongoing.

17

##### Table of Contents

SECOND QUARTER 2017

UNCONSOLIDATED JOINT VENTURES (continued)

(unaudited and dollars in thousands)

Results of Operations

for the three months ended June 30, 2017

|  | 540 Madison Avenue |  |  | Market Square North |  |  | Metropolitan Square |  |  | 901 New York Avenue |  |  | Wisconsin Place Parking Facility |  |  | Annapolis Junction (1) |  |  | 500 North Capitol Street, N.W. |  |  | Colorado Center |  |  | 1265 Main Street |  |  | Other Joint Ventures (2) |  |  | Total Unconsolidated Joint Ventures |
REVENUE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental (3) |  | $ | 7,044 |  |  | $ | 3,424 |  |  | $ | 4,695 |  |  | $ | 6,900 |  |  | $ | 1,011 |  |  | $ | 1,888 |  |  | $ | 2,905 |  |  | $ | 14,572 |  |  | $ | 994 |  |  | $ | 282 |  |  | $ | 43,715 |
Operating recoveries |  |  | 696 |  |  |  | 863 |  |  |  | 1,367 |  |  |  | 1,246 |  |  |  | 255 |  |  |  | 566 |  |  |  | 1,243 |  |  |  | 500 |  |  |  | 194 |  |  |  | — |  |  |  | 6,930 |
Straight-line rent |  |  | (635 | ) |  |  | 1,121 |  |  |  | 1,746 |  |  |  | 518 |  |  |  | — |  |  |  | 212 |  |  |  | 88 |  |  |  | 1,282 |  |  |  | — |  |  |  | — |  |  |  | 4,332 |
Fair value lease revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 96 |  |  |  | — |  |  |  | — |  |  |  | 96 |
Termination income |  |  | — |  |  |  | — |  |  |  | (13 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (13 | )
Total revenue |  |  | 7,105 |  |  |  | 5,408 |  |  |  | 7,795 |  |  |  | 8,664 |  |  |  | 1,266 |  |  |  | 2,666 |  |  |  | 4,236 |  |  |  | 16,450 |  |  |  | 1,188 |  |  |  | 282 |  |  |  | 55,060 |
EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating |  |  | 3,483 |  |  |  | 2,363 |  |  |  | 3,593 |  |  |  | 3,405 |  |  |  | 480 |  |  |  | 1,561 |  |  |  | 1,403 |  |  |  | 5,217 |  |  |  | 215 |  |  |  | 383 |  |  |  | 22,103 |
NET OPERATING INCOME/(LOSS) |  |  | 3,622 |  |  |  | 3,045 |  |  |  | 4,202 |  |  |  | 5,259 |  |  |  | 786 |  |  |  | 1,105 |  |  |  | 2,833 |  |  |  | 11,233 |  |  |  | 973 |  |  |  | (101 | ) |  |  | 32,957 |
Interest |  |  | 813 |  |  |  | 1,506 |  |  |  | 2,369 |  |  |  | 2,075 |  |  |  | — |  |  |  | 1,163 |  |  |  | 1,116 |  |  |  | — |  |  |  | 385 |  |  |  | — |  |  |  | 9,427 |
Depreciation and amortization |  |  | 1,881 |  |  |  | 1,001 |  |  |  | 1,953 |  |  |  | 1,489 |  |  |  | 1,383 |  |  |  | 1,070 |  |  |  | 954 |  |  |  | 4,088 |  |  |  | 405 |  |  |  | — |  |  |  | 14,224 |
SUBTOTAL |  |  | 2,694 |  |  |  | 2,507 |  |  |  | 4,322 |  |  |  | 3,564 |  |  |  | 1,383 |  |  |  | 2,233 |  |  |  | 2,070 |  |  |  | 4,088 |  |  |  | 790 |  |  |  | — |  |  |  | 23,651 |
NET INCOME/(LOSS) |  | $ | 928 |  |  | $ | 538 |  |  | $ | (120 | ) |  | $ | 1,695 |  |  | $ | (597 | ) |  | $ | (1,128 | ) |  | $ | 763 |  |  | $ | 7,145 |  |  | $ | 183 |  |  | $ | (101 | ) |  | $ | 9,306 |
BXP’s nominal ownership percentage |  |  | 60.00 | % |  |  | 50.00 | % |  |  | 20.00 | % |  |  | 25.00 | % |  |  | 33.33 | % |  |  | 50.00 | % |  |  | 30.00 | % |  |  | 49.80 | % |  |  | 50.00 | % |  |  | 50.00 | % |  |  |  |
BXP’s share of net income/(loss) |  | $ | 556 |  |  | $ | 269 |  |  | $ | (24 | ) |  | $ | 449 | (4) |  | $ | (169 | ) |  | $ | (564 | ) |  | $ | 229 |  |  | $ | 3,558 |  |  | $ | 91 |  |  | $ | (51 | ) |  | $ | 4,344 |
Basis differential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (208 | ) |  | $ | — |  |  | $ | — |  |  | $ | (208 | )
Straight-line rent |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 888 | (5) |  |  | — |  |  |  | — |  |  |  | 888 |
Fair value lease revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 444 | (5) |  |  | — |  |  |  | — |  |  |  | 444 |
Termination income |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 407 |  |  |  | — |  |  |  | — |  |  |  | 407 |
Depreciation and amortization |  |  | 173 |  |  |  | (2 | ) |  |  | (5 | ) |  |  | (6 | ) |  |  | (7 | ) |  |  | (4 | ) |  |  | 5 |  |  |  | (2,917 | )(5) |  |  | (4 | ) |  |  | — |  |  |  | (2,767 | )
Total basis differential (6) |  |  | 173 |  |  |  | (2 | ) |  |  | (5 | ) |  |  | (6 | ) |  |  | (7 | ) |  |  | (4 | ) |  |  | 5 |  |  |  | (1,386 | )(5) |  |  | (4 | ) |  |  | — |  |  |  | (1,236 | )
Income/(loss) from unconsolidated joint ventures |  | $ | 729 |  |  | $ | 267 |  |  | $ | (29 | ) |  | $ | 443 | (4) |  | $ | (176 | ) |  | $ | (568 | ) |  | $ | 234 |  |  | $ | 2,172 |  |  | $ | 87 |  |  | $ | (51 | ) |  | $ | 3,108 |
Gain on investment |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
BXP’s share of depreciation & amortization |  |  | 1,026 |  |  |  | 521 |  |  |  | 425 |  |  |  | 1,151 | (4) |  |  | 474 |  |  |  | 559 |  |  |  | 302 |  |  |  | 4,957 |  |  |  | 214 |  |  |  | — |  |  |  | 9,629 |
BXP’s share of Funds from Operations (FFO) |  | $ | 1,755 |  |  | $ | 788 |  |  | $ | 396 |  |  | $ | 1,594 |  |  | $ | 298 |  |  | $ | (9 | ) |  | $ | 536 |  |  | $ | 7,129 |  |  | $ | 301 |  |  | $ | (51 | ) |  | $ | 12,737 |
BXP’s share of interest expense |  | $ | 488 |  |  | $ | 753 |  |  | $ | 474 |  |  | $ | 997 | (4) |  | $ | — |  |  | $ | 582 |  |  | $ | 335 |  |  | $ | — |  |  | $ | 193 |  |  | $ | — |  |  | $ | 3,822 |
BXP’s share of amortization of financing costs |  | $ | 31 |  |  | $ | 10 |  |  | $ | 5 |  |  | $ | 21 |  |  | $ | — |  |  | $ | 28 |  |  | $ | 4 |  |  | $ | — |  |  | $ | 3 |  |  | $ | — |  |  | $ | 102 |
BXP’s share of capitalized interest |  | $ | — |  |  | $ | — |  |  | $ | (6 | ) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | (6 | )
BXP’s share of non-cash termination income adjustment |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(fair value lease amounts) |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 214 |  |  | $ | — |  |  | $ | — |  |  | $ | 214 |
BXP’s share of revenue (7) |  | $ | 4,263 |  |  | $ | 2,704 |  |  | $ | 1,559 |  |  | $ | 4,163 | (4) |  | $ | 422 |  |  | $ | 1,333 |  |  | $ | 1,271 |  |  | $ | 9,724 |  |  | $ | 594 |  |  | $ | 141 |  |  | $ | 26,174 |
BXP’s share of operating expenses |  |  | 2,090 |  |  |  | 1,181 |  |  |  | 719 |  |  |  | 1,636 | (4) |  |  | 160 |  |  |  | 781 |  |  |  | 421 |  |  |  | 2,598 |  |  |  | 107 |  |  |  | 191 |  |  |  | 9,884 |
BXP’s share of net operating income/(loss) (7) |  |  | 2,173 |  |  |  | 1,523 |  |  |  | 840 |  |  |  | 2,527 | (4) |  |  | 262 |  |  |  | 552 |  |  |  | 850 |  |  |  | 7,126 |  |  |  | 487 |  |  |  | (50 | ) |  |  | 16,290 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of termination income |  |  | — |  |  |  | — |  |  |  | (3 | ) |  |  | — | (4) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 407 |  |  |  | — |  |  |  | — |  |  |  | 404 |
BXP’s share of net operating income/(loss) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(excluding termination income) (7) |  |  | 2,173 |  |  |  | 1,523 |  |  |  | 843 |  |  |  | 2,527 | (4) |  |  | 262 |  |  |  | 552 |  |  |  | 850 |  |  |  | 6,719 |  |  |  | 487 |  |  |  | (50 | ) |  |  | 15,886 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of straight-line rent |  |  | (381 | ) |  |  | 560 |  |  |  | 349 |  |  |  | 249 | (4) |  |  | — |  |  |  | 106 |  |  |  | 26 |  |  |  | 1,526 |  |  |  | — |  |  |  | — |  |  |  | 2,435 |
BXP’s share of fair value lease revenue |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — | (4) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 492 |  |  |  | — |  |  |  | — |  |  |  | 492 |
Add: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of lease transaction costs that qualify as rent inducements |  |  | — |  |  |  | 194 |  |  |  | — |  |  |  | 9 | (4) |  |  | — |  |  |  | 20 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 223 |
BXP’s share of net operating income/(loss) - cash (excluding termination income) (7) |  | $ | 2,554 |  |  | $ | 1,157 |  |  | $ | 494 |  |  | $ | 2,287 | (4) |  | $ | 262 |  |  | $ | 466 |  |  | $ | 824 |  |  | $ | 4,701 |  |  | $ | 487 |  |  | $ | (50 | ) |  | $ | 13,182 |

(1) | Annapolis Junction includes four properties in service and two undeveloped land parcels.

(2) | Includes The Hub on Causeway, 1001 6th Street and Dock 72.

(3) | Includes approximately $68 of management services income and approximately $81 of interest and other income.

(4) | Reflects the allocation percentages pursuant to the achievement of specified investment return thresholds as provided for in the joint venture agreement.

(5) | The Company’s purchase price allocation under ASC 805 for Colorado Center differs from the historical basis of the venture resulting in the majority of the basis differential for this venture.

(6) | Represents adjustments related to the carrying values and depreciation of certain of the Company’s investment in unconsolidated joint ventures.

(7) | Includes the Company’s share of approximately $39 of management services income and approximately $38 of interest and other income.

18

##### Table of Contents

SECOND QUARTER 2017

CONSOLIDATED JOINT VENTURES

(unaudited and in thousands)

Balance Sheets

as of June 30, 2017

BXP’s ownership percentage |  |  | 60.00% |  |  |  | 55.00% |  |  |  | 95.00% |  |  |  |  |
|  |  |  |  | Norges Joint Ventures |  |  |  |  |  |  |
|  | 767 Fifth Avenue (The GM Building)(1) |  |  | Times Square Tower 601 Lexington Avenue 100 Federal Street Atlantic Wharf Office(1) |  |  | Salesforce Tower(1) |  |  | Total Consolidated Joint Ventures |
ASSETS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate, net |  | $ | 3,394,075 |  |  | $ | 2,212,147 |  |  | $ | 920,658 |  |  | $ | 6,526,880 |
Cash and cash held in escrows |  |  | 164,469 |  |  |  | 160,221 |  |  |  | 2,245 |  |  |  | 326,935 |
Other assets |  |  | 103,167 |  |  |  | 179,628 |  |  |  | 2,711 |  |  |  | 285,506 |
Total assets |  | $ | 3,661,711 |  |  | $ | 2,551,996 |  |  | $ | 925,614 |  |  | $ | 7,139,321 |
LIABILITIES AND EQUITY |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage notes payable, net |  | $ | 2,265,255 | (2) |  | $ | 678,577 |  |  | $ | — |  |  | $ | 2,943,832 |
Other liabilities |  |  | 130,049 |  |  |  | 89,497 |  |  |  | 67,113 |  |  |  | 286,659 |
Total liabilities |  |  | 2,395,304 |  |  |  | 768,074 |  |  |  | 67,113 |  |  |  | 3,230,491 |
Equity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Boston Properties, Inc. |  |  | 760,735 |  |  |  | 660,696 |  |  |  | 833,340 |  |  |  | 2,254,771 |
Noncontrolling interests |  |  | 505,672 |  |  |  | 1,123,226 |  |  |  | 25,161 |  |  |  | 1,654,059 | (3)
Total equity |  |  | 1,266,407 |  |  |  | 1,783,922 |  |  |  | 858,501 |  |  |  | 3,908,830 |
Total liabilities and equity |  | $ | 3,661,711 |  |  | $ | 2,551,996 |  |  | $ | 925,614 |  |  | $ | 7,139,321 |
Partners’ share of consolidated debt |  | $ | 906,125 |  |  | $ | 305,360 |  |  | $ | — |  |  | $ | 1,211,485 |

(1) | Certain balances contain amounts that eliminate in consolidation.

(2) | See footnote 1 on page 8.

(3) | Amount excludes preferred shareholders’ capital of approximately $0.1 million.

19

##### Table of Contents

SECOND QUARTER 2017

CONSOLIDATED JOINT VENTURES (continued)

(unaudited and in thousands)

Income Statements

for the three months ended June 30, 2017

|  |  |  |  | Norges Joint Ventures |  |  |  |  |  |  |
|  |  |  |  | Times Square Tower |  |  |  |  |  |  |
|  |  |  |  | 601 Lexington Avenue |  |  |  |  |  | Total |
|  | 767 Fifth Avenue |  |  | 100 Federal Street |  |  |  |  |  | Consolidated |
|  | (The GM Building) |  |  | Atlantic Wharf Office |  |  | Salesforce Tower |  |  | Joint Ventures |
REVENUE |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental |  | $ | 70,224 |  |  | $ | 96,883 |  |  | $ | — |  |  | $ | 167,107 |
Straight-line rent |  |  | 853 |  |  |  | (8,148 | ) |  |  | — |  |  |  | (7,295 | )
Fair value lease revenue |  |  | 3,686 |  |  |  | 236 |  |  |  | — |  |  |  | 3,922 |
Termination income |  |  | 6,264 |  |  |  | — |  |  |  | — |  |  |  | 6,264 |
Parking and other |  |  | — |  |  |  | 1,287 |  |  |  | — |  |  |  | 1,287 |
Total revenue |  |  | 81,027 |  |  |  | 90,258 |  |  |  | — |  |  |  | 171,285 |
EXPENSES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating |  |  | 28,814 |  |  |  | 34,282 |  |  |  | — |  |  |  | 63,096 |
NET OPERATING INCOME |  |  | 52,213 |  |  |  | 55,976 |  |  |  | — |  |  |  | 108,189 |
Management services income |  |  | (558 | ) |  |  | (710 | ) |  |  | — |  |  |  | (1,268 | )
Interest and other income |  |  | (59 | ) |  |  | (334 | ) |  |  | (8 | ) |  |  | (401 | )
Interest expense |  |  | 23,321 |  |  |  | 7,686 |  |  |  | — |  |  |  | 31,007 |
Interest expense—outside members’ notes |  |  | 7,078 |  |  |  | — |  |  |  | — |  |  |  | 7,078 |
Fair value interest adjustment |  |  | (8,660 | ) |  |  | — |  |  |  | — |  |  |  | (8,660 | )
Depreciation and amortization |  |  | 25,189 |  |  |  | 20,590 |  |  |  | — |  |  |  | 45,779 |
Gain from early extinguishment of debt |  |  | (14,606 | ) |  |  |  |  |  |  |  |  |  |  | (14,606 | )
Other |  |  | — |  |  |  | 39 |  |  |  | — |  |  |  | 39 |
SUBTOTAL |  |  | 31,705 |  |  |  | 27,271 |  |  |  | (8 | ) |  |  | 58,968 |
NET INCOME/(LOSS) |  | $ | 20,508 |  |  | $ | 28,705 |  |  | $ | 8 |  |  | $ | 49,221 |
BXP’s ownership percentage |  |  | 60.00 | % |  |  | 55.00 | % |  |  | 95.00 | % |  |  |  |
Partners’ share of NOI (1) |  | $ | 20,885 |  |  | $ | 25,189 |  |  | $ | — |  |  | $ | 46,074 |
BXP’s share of NOI |  | $ | 31,328 |  |  | $ | 30,787 |  |  | $ | — |  |  | $ | 62,115 |
Unearned portion of capitalized fees (2) |  | $ | 108 |  |  | $ | 494 |  |  | $ | 5 |  |  | $ | 607 |
Reconciliation of partners’ noncontrolling interest (NCI): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | 20,508 |  |  | $ | 28,705 |  |  | $ | 8 |  |  | $ | 49,221 |
Add depreciation & amortization—BXP’s basis difference |  |  | 30 |  |  |  | 43 |  |  |  | — |  |  |  | 73 |
Special allocation—BXP’s basis |  |  | — |  |  |  | (89 | ) |  |  | — |  |  |  | (89 | )
Add partners’ share of outside members’ loan interest |  |  | 7,078 |  |  |  | — |  |  |  | — |  |  |  | 7,078 |
Net income/(loss) before interest allocation |  | $ | 27,616 |  |  | $ | 28,659 |  |  | $ | 8 |  |  | $ | 56,283 |
Partners’ share of net income before interest allocation (1) |  | $ | 11,046 |  |  | $ | 12,896 |  |  | $ | — |  |  | $ | 23,942 |
Partners’ share of outside members’ loan interest (1) |  |  | (7,078 | ) |  |  | — |  |  |  | — |  |  |  | (7,078 | )
Allocation of management and other fees to non-controlling partners (1) |  |  | (762 | ) |  |  | (769 | ) |  |  | — |  |  |  | (1,531 | )
Accretion and adjustments (1) |  |  | — |  |  |  | — |  |  |  | (130 | ) |  |  | (130 | )
Partners’ NCI (1) |  | $ | 3,206 |  |  | $ | 12,127 |  |  | $ | (130 | ) |  | $ | 15,203 |
Reconciliation of partners’ share of FFO: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income/(loss) |  | $ | 20,508 |  |  | $ | 28,705 |  |  | $ | 8 |  |  | $ | 49,221 |
Add depreciation & amortization |  |  | 25,189 |  |  |  | 20,590 |  |  |  | — |  |  |  | 45,779 |
Entity FFO |  | $ | 45,697 |  |  | $ | 49,295 |  |  | $ | 8 |  |  | $ | 95,000 |
Partners’ NCI (1) |  | $ | 3,206 |  |  | $ | 12,127 |  |  | $ | (130 | ) |  | $ | 15,203 |
Partners’ share of depreciation and amortization after BXP’s basis differential (1) |  |  | 10,063 |  |  |  | 9,264 |  |  |  | — |  |  |  | 19,327 |
Partners’ share FFO (1) |  | $ | 13,269 |  |  | $ | 21,391 |  |  | $ | (130 | ) |  | $ | 34,530 |
Reconciliation of BXP’s share of FFO: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
BXP’s share of net income/(loss) adjusted for partners’ NCI |  | $ | 17,302 |  |  | $ | 16,578 |  |  | $ | 138 |  |  | $ | 34,018 |
Depreciation & amortization—BXP’s basis difference |  |  | 30 |  |  |  | 43 |  |  |  | — |  |  |  | 73 |
BXP’s share of depreciation & amortization |  |  | 15,095 |  |  |  | 11,283 |  |  |  | — |  |  |  | 26,378 |
BXP’s share of FFO |  | $ | 32,427 |  |  | $ | 27,904 |  |  | $ | 138 |  |  | $ | 60,469 |
Partners’ share of select items (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Partners’ share of revenue |  | $ | 32,411 |  |  | $ | 40,616 |  |  | $ | — |  |  | $ | 73,027 |
Partners’ share of interest expense |  | $ | 12,942 |  |  | $ | 3,459 |  |  | $ | — |  |  | $ | 16,401 |
Partners’ share of fair value interest adjustment |  | $ | (3,464 | ) |  | $ | — |  |  | $ | — |  |  | $ | (3,464 | )
Partners’ share of amortization of financing costs |  | $ | 170 |  |  | $ | 36 |  |  | $ | — |  |  | $ | 206 |
Partners’ share of capitalized interest |  | $ | 18 |  |  | $ | 220 |  |  | $ | — |  |  | $ | 238 |
Partners’ share of non-cash termination income adjustment (fair value lease amounts) |  | $ | (210 | ) |  | $ | — |  |  | $ | — |  |  | $ | (210 | )
Partners’ share of non-cash gain on extinguishment of debt |  | $ | 5,878 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,878 |
Reconciliation of Partners’ share of NOI (1): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenue |  | $ | 32,411 |  |  | $ | 40,616 |  |  | $ | — |  |  | $ | 73,027 |
Less: Termination income |  |  | 2,506 |  |  |  | — |  |  |  | — |  |  |  | 2,506 |
Rental revenue (excluding termination income) |  |  | 29,905 |  |  |  | 40,616 |  |  |  | — |  |  |  | 70,521 |
Operating expenses |  |  | 11,526 |  |  |  | 15,427 |  |  |  | — |  |  |  | 26,953 |
NOI (excluding termination income) |  | $ | 18,379 |  |  | $ | 25,189 |  |  | $ | — |  |  | $ | 43,568 |
Rental revenue (excluding termination income) |  | $ | 29,905 |  |  | $ | 40,616 |  |  |  | — |  |  | $ | 70,521 |
Less: Straight-line rent |  |  | 341 |  |  |  | (3,667 | ) |  |  | — |  |  |  | (3,326 | )
Fair value lease revenue |  |  | 1,474 |  |  |  | 106 |  |  |  | — |  |  |  | 1,580 |
Subtotal |  |  | 28,090 |  |  |  | 44,177 |  |  |  | — |  |  |  | 72,267 |
Less: Operating expenses |  |  | 11,526 |  |  |  | 15,427 |  |  |  | — |  |  |  | 26,953 |
NOI—cash (excluding termination income) |  | $ | 16,564 |  |  | $ | 28,750 |  |  | $ | — |  |  | $ | 45,314 |

(1) | Amounts represent the partners’ share based on their respective ownership percentage.

(2) | Capitalized fees are eliminated in consolidation and recognized over the life of the asset as depreciation and amortization are added back to the Company’s net income.

20

##### Table of Contents

SECOND QUARTER 2017

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO BOSTON PROPERTIES, INC. COMMON SHAREHOLDERS TO NET OPERATING INCOME (NOI)

(in thousands)

|  | For the three months ended |
|  | June 30, 2017 |  |  | June 30, 2016 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 96,597 |
Preferred dividends |  |  | 2,625 |  |  |  | 2,589 |
Net income attributable to Boston Properties, Inc. |  |  | 136,334 |  |  |  | 99,186 |
Net income attributable to noncontrolling interests: |  |  |  |  |  |  |  |
Noncontrolling interest—common units of the Operating Partnership |  |  | 15,473 |  |  |  | 11,357 |
Noncontrolling interest in property partnerships |  |  | 15,203 |  |  |  | 6,814 |
Net income |  |  | 167,010 |  |  |  | 117,357 |
Gains on sales of real estate |  |  | (3,767 | ) |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 117,357 |
Add: |  |  |  |  |  |  |  |
Interest expense |  |  | 95,143 |  |  |  | 105,003 |
Depreciation and amortization |  |  | 151,919 |  |  |  | 153,175 |
Transaction costs |  |  | 299 |  |  |  | 913 |
General and administrative expense |  |  | 27,141 |  |  |  | 25,418 |
Subtract: |  |  |  |  |  |  |  |
Gains from early extinguishments of debt |  |  | (14,354 | ) |  |  | — |
Gains from investments in securities |  |  | (730 | ) |  |  | (478 | )
Interest and other income |  |  | (1,504 | ) |  |  | (1,524 | )
Income from unconsolidated joint ventures |  |  | (3,108 | ) |  |  | (2,234 | )
Development and management services income |  |  | (7,365 | ) |  |  | (5,533 | )
Net Operating Income (NOI) |  |  | 410,684 |  |  |  | 392,097 |
Add: |  |  |  |  |  |  |  |
BXP’s share of NOI from unconsolidated joint ventures |  |  | 16,290 | (1) |  |  | 10,672 |
Subtract: |  |  |  |  |  |  |  |
Partners’ share of NOI from consolidated joint ventures |  |  | (46,074 | )(2) |  |  | (44,208 | )
BXP’s Share of NOI |  |  | 380,900 |  |  |  | 358,561 |
Subtract: |  |  |  |  |  |  |  |
Termination income |  |  | (13,601 | ) |  |  | (7,654 | )
BXP’s share of termination income from unconsolidated joint ventures |  |  | (404 | )(1) |  |  | (4 | )
Add: |  |  |  |  |  |  |  |
Partners’ share of termination income from consolidated joint ventures |  |  | 2,506 | (2) |  |  | 44 |
BXP’s Share of NOI (excluding termination income) |  | $ | 369,401 |  |  | $ | 350,947 |
Net Operating Income (NOI) |  | $ | 410,684 |  |  | $ | 392,097 |
Subtract: |  |  |  |  |  |  |  |
Termination income |  |  | (13,601 | ) |  |  | (7,654 | )
NOI from non Same Properties (excluding termination income) (3) |  |  | (9,282 | ) |  |  | (12,292 | )
Same Property NOI (excluding termination income) |  |  | 387,801 |  |  |  | 372,151 |
Subtract: |  |  |  |  |  |  |  |
Partners’ share of NOI from consolidated joint ventures (excluding termination income) |  |  | (43,568 | )(2) |  |  | (44,164 | )
Add: |  |  |  |  |  |  |  |
Partners’ share of NOI from non Same Properties from consolidated joint ventures (excluding termination income) (3) |  |  | (886 | ) |  |  | 1,367 |
BXP’s share of NOI from unconsolidated joint ventures (excluding termination income) |  |  | 15,886 | (1) |  |  | 10,668 |
Subtract: |  |  |  |  |  |  |  |
BXP’s share of NOI from non Same Properties from unconsolidated joint ventures (excluding termination income) (3) |  |  | (7,206 | ) |  |  | (1,331 | )
BXP’s Share of Same Property NOI (excluding termination income) |  | $ | 352,027 |  |  | $ | 338,691 |

(1) | For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.

(2) | For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.

(3) | Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, non Same Properties include properties that were sold prior to June 30, 2017 and therefore are no longer a part of the Company’s property portfolio.

21

##### Table of Contents

SECOND QUARTER 2017

RECONCILIATION OF NET INCOME ATTRIBUTABLE TO BOSTON PROPERTIES, INC. COMMON SHAREHOLDERS TO NET OPERATING INCOME (NOI) - CASH

(in thousands)

|  | For the three months ended |
|  | June 30, 2017 |  |  | June 30, 2016 |
Net income attributable to Boston Properties, Inc. common shareholders |  | $ | 133,709 |  |  | $ | 96,597 |
Preferred dividends |  |  | 2,625 |  |  |  | 2,589 |
Net income attributable to Boston Properties, Inc. |  |  | 136,334 |  |  |  | 99,186 |
Net income attributable to noncontrolling interests: |  |  |  |  |  |  |  |
Noncontrolling interest—common units of the Operating Partnership |  |  | 15,473 |  |  |  | 11,357 |
Noncontrolling interest in property partnerships |  |  | 15,203 |  |  |  | 6,814 |
Net income |  |  | 167,010 |  |  |  | 117,357 |
Gains on sales of real estate |  |  | (3,767 | ) |  |  | — |
Income before gains on sales of real estate |  |  | 163,243 |  |  |  | 117,357 |
Add: |  |  |  |  |  |  |  |
Interest expense |  |  | 95,143 |  |  |  | 105,003 |
Depreciation and amortization |  |  | 151,919 |  |  |  | 153,175 |
Transaction costs |  |  | 299 |  |  |  | 913 |
General and administrative expense |  |  | 27,141 |  |  |  | 25,418 |
Subtract: |  |  |  |  |  |  |  |
Gains from early extinguishments of debt |  |  | (14,354 | ) |  |  | — |
Gains from investments in securities |  |  | (730 | ) |  |  | (478 | )
Interest and other income |  |  | (1,504 | ) |  |  | (1,524 | )
Income from unconsolidated joint ventures |  |  | (3,108 | ) |  |  | (2,234 | )
Development and management services income |  |  | (7,365 | ) |  |  | (5,533 | )
Net Operating Income (NOI) |  |  | 410,684 |  |  |  | 392,097 |
Subtract: |  |  |  |  |  |  |  |
Straight-line rent |  |  | (3,060 | ) |  |  | 6,503 |
Fair value lease revenue |  |  | (5,464 | ) |  |  | (8,808 | )
Termination income |  |  | (13,601 | ) |  |  | (7,654 | )
Add: |  |  |  |  |  |  |  |
Straight-line ground rent expense adjustment (1) |  |  | 929 |  |  |  | 971 |
Lease transaction costs that qualify as rent inducements (2) |  |  | 115 |  |  |  | 2,200 |
NOI—cash (excluding termination income) |  |  | 389,603 |  |  |  | 385,309 |
Subtract: |  |  |  |  |  |  |  |
NOI—cash from non Same Properties (excluding termination income) (3) |  |  | (6,818 | ) |  |  | (19,492 | )
Same Property NOI—cash (excluding termination income) |  |  | 382,785 |  |  |  | 365,817 |
Subtract: |  |  |  |  |  |  |  |
Partners’ share of NOI—cash from consolidated joint ventures (excluding termination income) |  |  | (45,314 | ) (4) |  |  | (40,415 | )
Add: |  |  |  |  |  |  |  |
Partners’ share of NOI—cash from non Same Properties from consolidated joint ventures (excluding termination income) (3) |  |  | (882 | ) |  |  | 1,577 |
BXP’s share of NOI—cash from unconsolidated joint ventures (excluding termination income) |  |  | 13,182 | (5) |  |  | 8,881 |
Subtract: |  |  |  |  |  |  |  |
BXP’s share of NOI—cash from non Same Properties from unconsolidated joint ventures (excluding termination income) (3) |  |  | (5,188 | ) |  |  | (689 | )
BXP’s Share of Same Property NOI—cash (excluding termination income) |  | $ | 344,583 |  |  | $ | 335,171 |

(1) | In light of the front-ended, uneven rental payments required by the Company’s 99-year ground and air rights lease for the 100 Clarendon Street garage and Back Bay Transit Station in Boston, MA, and to make period-to-period comparisons more meaningful to investors, the adjustment does not include the straight-line impact of approximately $(531) and $(36) for the three months ended June 30, 2017 and 2016, respectively. As of June 30, 2017, the Company has remaining lease payments aggregating approximately $27.1 million, all of which it expects to incur by the end of 2020 with no payments thereafter. Under GAAP, the Company is recognizing expense of $(87) per quarter on a straight-line basis over the term of the lease. However, unlike more traditional ground and air rights leases, the timing and amounts of the rental payments by the Company correlate to the uneven timing and funding by the Company of capital expenditures related to improvements at Back Bay Transit Station. As a result, the amounts excluded from the adjustment each quarter through 2020 may vary significantly.

(2) | Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 12.

(3) | Pages 27-29 indicate by footnote the properties that are not included as part of Same Property NOI. In addition, non Same Properties include dispositions that occurred prior to June 30, 2017 and therefore are no longer a part of the Company’s property portfolio.

(4) | For disclosures related to the calculation of Partners’ share from consolidated joint ventures, see page 20.

(5) | For disclosures related to the calculation of BXP’s share from unconsolidated joint ventures, see page 18.

22

##### Table of Contents

SECOND QUARTER 2017

SAME PROPERTY NET OPERATING INCOME (NOI) BY REPORTABLE SEGMENT

(dollars in thousands)

|  | Office (1) |  |  | Hotel & Residential |
|  | For the three months ended |  |  |  |  |  |  |  |  | For the three months ended |  |  |  |  |  |  |
|  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |  |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |
Rental Revenue |  | $ | 612,298 |  |  | $ | 582,547 |  |  |  |  |  |  |  |  |  |  | $ | 17,585 |  |  | $ | 16,896 |  |  |  |  |  |  |  |  |
Less: Termination income |  |  | 13,601 |  |  |  | 7,540 |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  |  |  |  |  |  |
Rental revenue (excluding termination income) (2) |  |  | 598,697 |  |  |  | 575,007 |  |  | $ | 23,690 |  |  |  | 4.1 | % |  |  | 17,585 |  |  |  | 16,896 |  |  | $ | 689 |  |  |  | 4.1 | %
Less: Operating expenses and real estate taxes |  |  | 218,442 |  |  |  | 210,168 |  |  |  | 8,274 |  |  |  | 3.9 | % |  |  | 10,039 |  |  |  | 9,584 |  |  |  | 455 |  |  |  | 4.7 | %
NOI (excluding termination income) (3) |  | $ | 380,255 |  |  | $ | 364,839 |  |  | $ | 15,416 |  |  |  | 4.2 | % |  | $ | 7,546 |  |  | $ | 7,312 |  |  | $ | 234 |  |  |  | 3.2 | %
Rental revenue (excluding termination income) (2) |  | $ | 598,697 |  |  | $ | 575,007 |  |  |  |  |  |  |  |  |  |  | $ | 17,585 |  |  | $ | 16,896 |  |  |  |  |  |  |  |  |
Less: Straight-line rent and fair value lease revenue |  |  | 6,050 |  |  |  | 7,663 |  |  |  | (1,613 | ) |  |  | (21.0 | )% |  |  | 10 |  |  |  | 19 |  |  |  | (9 | ) |  |  | (47.4 | )%
Add: Lease transaction costs that qualify as rent inducements (4) |  |  | 115 |  |  |  | 377 |  |  |  | (262 | ) |  |  | (69.5 | )% |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Subtotal |  |  | 592,762 |  |  |  | 567,721 |  |  |  | 25,041 |  |  |  | 4.4 | % |  |  | 17,575 |  |  |  | 16,877 |  |  |  | 698 |  |  |  | 4.1 | %
Less: Operating expenses and real estate taxes |  |  | 218,442 |  |  |  | 210,168 |  |  |  | 8,274 |  |  |  | 3.9 | % |  |  | 10,039 |  |  |  | 9,584 |  |  |  | 455 |  |  |  | 4.7 | %
Add: Straight-line ground rent expense (5) |  |  | 929 |  |  |  | 971 |  |  |  | (42 | ) |  |  | (4.3 | )% |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
NOI (excluding termination income)—cash |  | $ | 375,249 |  |  | $ | 358,524 |  |  | $ | 16,725 |  |  |  | 4.7 | % |  | $ | 7,536 |  |  | $ | 7,293 |  |  | $ | 243 |  |  |  | 3.3 | %
|  | Consolidated Total (1) |  |  | Unconsolidated Joint Ventures (BXP’s share) |
|  | For the three months ended |  |  |  |  |  |  |  |  | For the three months ended |  |  |  |  |  |  |
|  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |  |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |
Rental Revenue |  | $ | 629,883 |  |  | $ | 599,443 |  |  |  |  |  |  |  |  |  |  | $ | 15,856 |  |  | $ | 16,428 |  |  |  |  |  |  |  |  |
Less: Termination income |  |  | 13,601 |  |  |  | 7,540 |  |  |  |  |  |  |  |  |  |  |  | (3 | ) |  |  | 4 |  |  |  |  |  |  |  |  |
Rental revenue (excluding termination income) (2) |  |  | 616,282 |  |  |  | 591,903 |  |  | $ | 24,379 |  |  |  | 4.1 | % |  |  | 15,859 |  |  |  | 16,424 |  |  | $ | (565 | ) |  |  | (3.4 | )%
Less: Operating expenses and real estate taxes |  |  | 228,481 |  |  |  | 219,752 |  |  |  | 8,729 |  |  |  | 4.0 | % |  |  | 7,179 |  |  |  | 7,087 |  |  |  | 92 |  |  |  | 1.3 | %
NOI (excluding termination income) (3) |  | $ | 387,801 |  |  | $ | 372,151 |  |  | $ | 15,650 |  |  |  | 4.2 | % |  | $ | 8,680 |  |  | $ | 9,337 |  |  | $ | (657 | ) |  |  | (7.0 | )%
Rental revenue (excluding termination income) (2) |  | $ | 616,282 |  |  | $ | 591,903 |  |  |  |  |  |  |  |  |  |  | $ | 15,859 |  |  | $ | 16,424 |  |  |  |  |  |  |  |  |
Less: Straight-line rent and fair value lease revenue |  |  | 6,060 |  |  |  | 7,682 |  |  |  | (1,622 | ) |  |  | (21.1 | )% |  |  | 909 |  |  |  | 1,144 |  |  |  | (235 | ) |  |  | (20.5 | )%
Add: Lease transaction costs that qualify as rent inducements (4) |  |  | 115 |  |  |  | 377 |  |  |  | (262 | ) |  |  | (69.5 | )% |  |  | 223 |  |  |  | — |  |  |  | 223 |  |  |  | 100.0 | %
Subtotal |  |  | 610,337 |  |  |  | 584,598 |  |  |  | 25,739 |  |  |  | 4.4 | % |  |  | 15,173 |  |  |  | 15,280 |  |  |  | (107 | ) |  |  | (0.7 | )%
Less: Operating expenses and real estate taxes |  |  | 228,481 |  |  |  | 219,752 |  |  |  | 8,729 |  |  |  | 4.0 | % |  |  | 7,179 |  |  |  | 7,087 |  |  |  | 92 |  |  |  | 1.3 | %
Add: Straight-line ground rent expense (5) |  |  | 929 |  |  |  | 971 |  |  |  | (42 | ) |  |  | (4.3 | )% |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
NOI (excluding termination income)—cash (6) |  | $ | 382,785 |  |  | $ | 365,817 |  |  | $ | 16,968 |  |  |  | 4.6 | % |  | $ | 7,994 |  |  | $ | 8,193 |  |  | $ | (199 | ) |  |  | (2.4 | )%
|  | Partners’ share of Consolidated Joint Ventures |  |  | BXP’s Share (7) |
|  | For the three months ended |  |  |  |  |  |  |  |  | For the three months ended |  |  |  |  |  |  |
|  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |  |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | $ Change |  |  | % Change |
Rental Revenue |  | $ | 72,637 |  |  | $ | 67,276 |  |  |  |  |  |  |  |  |  |  | $ | 573,102 |  |  | $ | 548,595 |  |  |  |  |  |  |  |  |
Less: Termination income |  |  | 2,506 |  |  |  | (7 | ) |  |  |  |  |  |  |  |  |  |  | 11,092 |  |  |  | 7,551 |  |  |  |  |  |  |  |  |
Rental revenue (excluding termination income) (2) |  |  | 70,131 |  |  |  | 67,283 |  |  | $ | 2,848 |  |  |  | 4.2 | % |  |  | 562,010 |  |  |  | 541,044 |  |  | $ | 20,966 |  |  |  | 3.9 | %
Less: Operating expenses and real estate taxes |  |  | 25,677 |  |  |  | 24,486 |  |  |  | 1,191 |  |  |  | 4.9 | % |  |  | 209,983 |  |  |  | 202,353 |  |  |  | 7,630 |  |  |  | 3.8 | %
NOI (excluding termination income) (3) |  | $ | 44,454 |  |  | $ | 42,797 |  |  | $ | 1,657 |  |  |  | 3.9 | % |  | $ | 352,027 |  |  | $ | 338,691 |  |  | $ | 13,336 |  |  |  | 3.9 | %
Rental revenue (excluding termination income) (2) |  | $ | 70,131 |  |  | $ | 67,283 |  |  |  |  |  |  |  |  |  |  | $ | 562,010 |  |  | $ | 541,044 |  |  |  |  |  |  |  |  |
Less: Straight-line rent and fair value lease revenue |  |  | (1,742 | ) |  |  | 3,958 |  |  |  | (5,700 | ) |  |  | (144.0 | )% |  |  | 8,711 |  |  |  | 4,868 |  |  |  | 3,843 |  |  |  | 78.9 | %
Add: Lease transaction costs that qualify as rent inducements (4) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 338 |  |  |  | 377 |  |  |  | (39 | ) |  |  | (10.3 | )%
Subtotal |  |  | 71,873 |  |  |  | 63,325 |  |  |  | 8,548 |  |  |  | 13.5 | % |  |  | 553,637 |  |  |  | 536,553 |  |  |  | 17,084 |  |  |  | 3.2 | %
Less: Operating expenses and real estate taxes |  |  | 25,677 |  |  |  | 24,486 |  |  |  | 1,191 |  |  |  | 4.9 | % |  |  | 209,983 |  |  |  | 202,353 |  |  |  | 7,630 |  |  |  | 3.8 | %
Add: Straight-line ground rent expense (5) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 929 |  |  |  | 971 |  |  |  | (42 | ) |  |  | (4.3 | )%
NOI (excluding termination income)—cash (6) |  | $ | 46,196 |  |  | $ | 38,839 |  |  | $ | 7,357 |  |  |  | 18.9 | % |  | $ | 344,583 |  |  | $ | 335,171 |  |  | $ | 9,412 |  |  |  | 2.8 | %

(1) | Includes 100% share of consolidated joint ventures. Same Property consolidated joint venture properties includes (a) 767 Fifth Avenue (The GM Building), 601 Lexington Avenue (excluding the portion removed from the complex as part of a planned redevelopment) and Times Square Tower in New York City and (b) 100 Federal Street and Atlantic Wharf Office Building in Boston, MA.

(2) | Rental Revenue (excluding termination income) is used internally by the Company as a performance measure and provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.

(3) | For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to net operating income (NOI) (excluding termination income), see page 21. For disclosures relating to the Company’s use of NOI, see page 48.

(4) | Consists of lease transaction costs that qualify as rent inducements in accordance with GAAP. Lease transaction costs are generally included in 2nd generation tenant improvements and leasing commissions in the Company’s FAD calculation on page 13.

(5) | Excludes the straight-line impact of approximately $(531) and $(36) for the three months ended June 30, 2017 and 2016, respectively, in connection with the Company’s 99-year ground and air rights lease at 100 Clarendon Street garage and Back Bay Transit Station. For additional information, see page 22.

(6) | For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to NOI—cash (excluding termination income), see page 22. For disclosures relating to the Company’s use of NOI, see page 48.

(7) | BXP’s Share represents consolidated plus the Company’ share of unconsolidated joint ventures less the partners’ share of consolidated joint ventures. For disclosures relating to the Company’s use of BXP’s Share, see page 47.

23

##### Table of Contents

SECOND QUARTER 2017

RESIDENTIAL and HOTEL PERFORMANCE

Rental Rates and Occupancy

|  | Second Quarter |  |  | Percent Change |  |  | YTD |  |  | Percent Change |
|  | 2017 |  |  |  |  |  | 2016 |  |  |  | 2017 |  |  |  |  |  | 2016 |  |
The Avant at Reston Town Center (359 units) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Reston, VA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Monthly Rental Rate (1) |  | $ | 2,386 |  |  |  |  |  |  | $ | 2,367 |  |  |  | 0.8 | % |  | $ | 2,378 |  |  |  |  |  |  | $ | 2,347 |  |  |  | 1.3 | %
Average Rental Rate Per Occupied Square Foot (1) |  | $ | 2.64 |  |  |  |  |  |  | $ | 2.60 |  |  |  | 1.5 | % |  | $ | 2.61 |  |  |  |  |  |  | $ | 2.57 |  |  |  | 1.6 | %
Average Physical Occupancy (1) (2) |  |  | 95.9 | % |  |  |  |  |  |  | 94.0 | % |  |  | 2.0 | % |  |  | 92.9 | % |  |  |  |  |  |  | 93.4 | % |  |  | (0.5 | )%
Average Economic Occupancy (2) |  |  | 94.5 | % |  |  |  |  |  |  | 93.9 | % |  |  | 0.6 | % |  |  | 92.2 | % |  |  |  |  |  |  | 93.3 | % |  |  | (1.2 | )%
The Lofts at Atlantic Wharf (86 units) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Boston, MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Monthly Rental Rate (3) |  | $ | 4,280 |  |  |  |  |  |  | $ | 4,150 |  |  |  | 3.1 | % |  | $ | 4,224 |  |  |  |  |  |  | $ | 4,153 |  |  |  | 1.7 | %
Average Rental Rate Per Occupied Square Foot (3) |  | $ | 4.71 |  |  |  |  |  |  | $ | 4.59 |  |  |  | 2.6 | % |  | $ | 4.69 |  |  |  |  |  |  | $ | 4.57 |  |  |  | 2.6 | %
Average Physical Occupancy (2) (3) |  |  | 95.4 | % |  |  |  |  |  |  | 95.4 | % |  |  | — |  |  |  | 94.6 | % |  |  |  |  |  |  | 96.1 | % |  |  | (1.6 | )%
Average Economic Occupancy (2) |  |  | 96.9 | % |  |  |  |  |  |  | 96.4 | % |  |  | 0.5 | % |  |  | 95.3 | % |  |  |  |  |  |  | 97.6 | % |  |  | (2.4 | )%
Boston Marriott Cambridge (433 rooms) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cambridge, MA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Occupancy |  |  | 85.9 | % |  |  | (4 | ) |  |  | 84.3 | % |  |  | 1.9 | % |  |  | 76.3 | % |  |  | (4 | ) |  |  | 79.7 | % |  |  | (4.3 | )%
Average Daily Rate |  | $ | 304.82 |  |  |  | (4 | ) |  | $ | 299.42 |  |  |  | 1.8 | % |  | $ | 268.01 |  |  |  | (4 | ) |  | $ | 263.61 |  |  |  | 1.7 | %
Revenue per available room |  | $ | 261.98 |  |  |  | (4 | ) |  | $ | 252.34 |  |  |  | 3.8 | % |  | $ | 204.37 |  |  |  | (4 | ) |  | $ | 210.21 |  |  |  | (2.8 | )%

Net Operating Income (dollars in thousands) (5)

|  | Residential |  |  | Hotel |
|  | Second Quarter |  |  | Percent Change |  |  | Second Quarter |  |  | Percent Change |
|  | 2017 |  |  | 2016 |  |  |  | 2017 |  |  | 2016 |  |
Rental Revenue |  | $ | 4,210 | (6) |  | $ | 4,088 | (6) |  |  | 3.0 | % |  | $ | 13,375 |  |  | $ | 12,808 |  |  |  | 4.4 | %
Less: Operating expenses and real estate taxes |  |  | 1,635 |  |  |  | 1,606 |  |  |  | 1.8 | % |  |  | 8,404 |  |  |  | 7,978 |  |  |  | 5.3 | %
Net Operating Income |  | $ | 2,575 | (6) |  | $ | 2,482 | (6) |  |  | 3.7 | % |  | $ | 4,971 |  |  | $ | 4,830 |  |  |  | 2.9 | %
Rental Revenue |  | $ | 4,210 | (6) |  | $ | 4,088 | (6) |  |  |  |  |  | $ | 13,375 |  |  | $ | 12,808 |  |  |  |  |
Less: Straight-line rent and fair value lease revenue |  |  | 13 |  |  |  | 18 |  |  |  | (27.8 | )% |  |  | (3 | ) |  |  | 1 |  |  |  | (400.0 | )%
Subtotal |  |  | 4,197 |  |  |  | 4,070 |  |  |  | 3.1 | % |  |  | 13,378 |  |  |  | 12,807 |  |  |  | 4.5 | %
Less: Operating expenses and real estate taxes |  |  | 1,635 |  |  |  | 1,606 |  |  |  | 1.8 | % |  |  | 8,404 |  |  |  | 7,978 |  |  |  | 5.3 | %
Net Operating Income—cash basis |  | $ | 2,562 | (6) |  | $ | 2,464 | (6) |  |  | 4.0 | % |  | $ | 4,974 |  |  | $ | 4,829 |  |  |  | 3.0 | %

(1) | Excludes 26,179 square feet of retail space which is 100% leased.

(2) | For disclosures related to the Company’s definition of Average Physical Occupancy and Average Economic Occupancy, see page 47.

(3) | Excludes 9,617 square feet of retail space which is 100% leased.

(4) | The hotel is undergoing a room renovation project, on all of its 433 rooms, which is near substantial completion. For additional information, see page 25.

(5) | For disclosures related to the Company’s definition of Net Operating Income, see page 48.

(6) | Includes 35,796 square feet of retail space, which had revenue of approximately $531 and $483 for the three months ended June 30, 2017 and 2016, respectively.

24

##### Table of Contents

SECOND QUARTER 2017

CAPITAL EXPENDITURES, TENANT IMPROVEMENT COSTS and LEASING COMMISSIONS

(dollars in thousands, except PSF amounts)

Capital Expenditures

|  | Q2 2017 |  |  | Q1 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Maintenance capital expenditures |  | $ | 11,643 |  |  | $ | 10,677 |  |  | $ | 59,838 |  |  | $ | 56,383 |  |  | $ | 45,618 |
Partners’ share of maintenance capital expenditures from consolidated joint ventures |  |  | (1,004 | ) |  |  | (2,129 | ) |  |  | (2,569 | ) |  |  | (5,565 | ) |  |  | (4,377 | )
BXP’s share of maintenance capital expenditures from unconsolidated joint ventures |  |  | 17 |  |  |  | 211 |  |  |  | 1,029 |  |  |  | 1,653 |  |  |  | 1,369 |
Hotel improvements, equipment upgrades and replacements (1) |  |  | 2,502 |  |  |  | 6,231 |  |  |  | 6,801 |  |  |  | 2,430 |  |  |  | 2,894 |
Planned capital expenditures associated with acquisition properties |  |  | — |  |  |  | — |  |  |  | 87 |  |  |  | 6,914 |  |  |  | 14,652 |
Partners’ share of planned capital expenditures associated with acquisition properties from consolidated joint ventures |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (845 | ) |  |  | (1,565 | )
BXP’s share of planned capital expenditures associated with acquisition properties from unconsolidated joint ventures |  |  | 396 |  |  |  | 62 |  |  |  | 230 |  |  |  | — |  |  |  | — |
Repositioning capital expenditures (2) |  |  | 39,582 |  |  |  | 30,722 |  |  |  | 58,446 |  |  |  | 9,744 |  |  |  | — |
Partners’ share of repositioning capital expenditures from consolidated joint ventures |  |  | (9,357 | ) |  |  | (5,740 | ) |  |  | (2,746 | ) |  |  | — |  |  |  | — |
BXP’s share of repositioning capital expenditures from unconsolidated joint ventures (3) |  |  | 105 |  |  |  | 41 |  |  |  | 494 |  |  |  | 76 |  |  |  | — |
Total BXP’s Share of Capital Expenditures |  | $ | 43,884 |  |  | $ | 40,075 |  |  | $ | 121,610 |  |  | $ | 70,790 |  |  | $ | 58,591 |

2nd Generation Tenant Improvements and Leasing Commissions (4)

|  | Q2 2017 |  |  | Q1 2017 |  |  | 2016 |  |  | 2015 |  |  | 2014 |
Square feet |  |  | 1,340,600 |  |  |  | 914,880 |  |  |  | 4,970,991 |  |  |  | 5,204,123 |  |  |  | 3,936,046 |
Tenant improvements and lease commissions PSF |  | $ | 63.96 |  |  | $ | 55.92 |  |  | $ | 62.04 |  |  | $ | 45.40 |  |  | $ | 29.60 |

(1) | Includes capital expenditures related to a room renovation project totaling approximately $2,300 for the quarter ended Q2 2017 and $8,800 in prior periods.

(2) | Q2 2017 amount includes capital expenditures related to the repositioning activities designed to enhance revenue potential at 1330 Connecticut Avenue in Washington, DC, 100 Federal Street (55% ownership) and Prudential Center Retail Improvements in Boston, MA, and 399 Park Avenue and 767 Fifth Avenue (the GM Building) (60% ownership) in New York City.

(3) | Includes capital expenditures related to the repositioning activities designed to enhance revenue potential at Metropolitan Square in Washington, DC.

(4) | Includes 100% of unconsolidated joint ventures.

25

##### Table of Contents

SECOND QUARTER 2017

PORTFOLIO OVERVIEW

for the three months ended June 30, 2017

(dollars in thousands)

Rentable Square Footage of In-Service Properties by Location and Unit Type (1) (2)

Geographic Area |  | Office |  |  | Retail |  |  | Residential |  |  | Hotel |  |  | Total |
Boston |  |  | 12,634,737 |  |  |  | 863,587 |  |  |  | 77,480 |  |  |  | 330,000 |  |  |  | 13,905,804 |
New York |  |  | 11,230,735 |  |  |  | 378,910 |  |  |  | — |  |  |  | — |  |  |  | 11,609,645 |
San Francisco and Los Angeles |  |  | 6,847,612 |  |  |  | 354,782 |  |  |  | — |  |  |  | — |  |  |  | 7,202,394 |
Washington, DC |  |  | 9,896,422 |  |  |  | 692,167 |  |  |  | 329,195 |  |  |  | — |  |  |  | 10,917,784 |
Total |  |  | 40,609,506 |  |  |  | 2,289,446 |  |  |  | 406,675 |  |  |  | 330,000 |  |  |  | 43,635,627 |
% of Total |  |  | 93.1 | % |  |  | 5.2 | % |  |  | 0.9 | % |  |  | 0.8 | % |  |  | 100.0 | %

Rentable Square Footage and Rental Revenue of In-Service Properties by Unit Type (1) (2)

|  |  |  |  | Rental Revenue |  |  |  |
Unit Type |  | Square Feet |  |  | Consolidated |  |  |  |  |  | Partners’ share from Consolidated Joint Ventures (3) |  |  | BXP’s share from Unconsolidated Joint Ventures (4) |  |  | Total |  |  | % of Total |
Office |  |  | 40,609,506 |  |  | $ | 556,601 |  |  |  |  |  |  | $ | (65,524 | ) |  | $ | 22,834 |  |  | $ | 513,911 |  |  |  | 85.3 | %
Retail |  |  | 2,289,446 |  |  |  | 49,664 |  |  |  |  |  |  |  | (6,621 | ) |  |  | 950 |  |  |  | 43,993 |  |  |  | 7.3 | %
Residential |  |  | 406,675 |  |  |  | 3,521 |  |  |  |  |  |  |  | — |  |  |  | — |  |  |  | 3,521 |  |  |  | 0.6 | %
Hotel |  |  | 330,000 |  |  |  | 13,294 |  |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | 13,294 |  |  |  | 2.2 | %
Parking and other |  |  | N/A |  |  |  | 26,462 |  |  |  | (6 | ) |  |  | (882 | ) |  |  | 2,313 |  |  |  | 27,893 |  |  |  | 4.6 | %
Total |  |  | 43,635,627 |  |  | $ | 649,542 |  |  |  |  |  |  | $ | (73,027 | ) |  | $ | 26,097 |  |  | $ | 602,612 |  |  |  | 100.0 | %

Rentable Square Footage of In-Service Same Properties by Unit Type (1) (2) (7)

Same Properties |  | Office |  |  | Retail |  |  | Residential |  |  | Hotel |  |  | Total |
Square Feet |  |  | 38,213,530 |  |  |  | 2,214,729 |  |  |  | 406,675 |  |  |  | 330,000 |  |  |  | 41,164,934 |
% of Properties In-Service |  |  | 94.1 | % |  |  | 96.7 | % |  |  | 100.0 | % |  |  | 100.0 | % |  |  | 94.3 | %

Percentage of BXP’s Share of Net Operating Income (excluding termination income) by Location and Type of Property (8)

Geographic Area |  | Office |  |  | Residential |  |  | Hotel |  |  | Total |
Boston |  |  | 29.7 | % |  |  | 0.2 | % |  |  | 1.3 | % |  |  | 31.2 | %
New York |  |  | 30.5 | % |  |  | — |  |  |  | — |  |  |  | 30.5 | %
San Francisco and Los Angeles |  |  | 18.0 | % |  |  | — |  |  |  | — |  |  |  | 18.0 | %
Washington, DC |  |  | 19.8 | % |  |  | 0.5 | % |  |  | — |  |  |  | 20.3 | %
Total |  |  | 98.0 | % |  |  | 0.7 | % |  |  | 1.3 | % |  |  | 100.0 | %

Geographic Area |  | CBD |  |  | Suburban |  |  | Total |
Boston |  |  | 24.6 | % |  |  | 6.6 | % |  |  | 31.2 | %
New York |  |  | 27.8 | % |  |  | 2.7 | % |  |  | 30.5 | %
San Francisco and Los Angeles |  |  | 14.6 | % |  |  | 3.4 | % |  |  | 18.0 | %
Washington, DC |  |  | 8.6 | % |  |  | 11.7 | % |  |  | 20.3 | %
Total |  |  | 75.6 | % |  |  | 24.4 | % |  |  | 100.0 | %

(1) | For the definition of In-Service Properties and related disclosures, see page 48.

(2) | Includes 100% of the rentable square footage of the Company’s In-Service Properties. For additional detail relating to the Company’s In-Service Properties, see pages 27-29.

(3) | For additional information, see page 20.

(4) | For additional information, see page 18.

(5) | Excludes approximately $81 of revenue from retail tenants that is included in Retail above.

(6) | Includes approximately $1,800 of other income.

(7) | Pages 27-29 indicate by footnote the properties that are not included as part of Same Properties.

(8) | BXP’s Share of Net Operating Income (NOI) (excluding termination income) is a non-GAAP financial measure. For a quantitative reconciliation of net income attributable to Boston Properties, Inc. common shareholders to BXP’s Share of NOI (excluding termination income), see page 21. For disclosures relating to the Company’s use of BXP’s Share of NOI (excluding termination income), see pages 47-48.

26

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE PROPERTY LISTING

as of June 30, 2017

|  | Sub Market |  | Number of Buildings |  |  | Square Feet |  |  | Leased % (1) |  |  | Annualized Rental Obligations Per Leased SF (2) |  |  | Encumbered with secured debt (Y/N) |  |  | Central Business District (CBD) or Suburban (S) |
Boston |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Office |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
200 Clarendon Street |  | CBD Boston MA |  |  | 1 |  |  |  | 1,751,028 |  |  |  | 84.0 | % |  | $ | 64.11 |  |  |  | N |  |  |  | CBD |
100 Federal Street (55% ownership) |  | CBD Boston MA |  |  | 1 |  |  |  | 1,241,458 |  |  |  | 93.4 | % |  |  | 53.57 |  |  |  | N |  |  |  | CBD |
800 Boylston Street - The Prudential Center |  | CBD Boston MA |  |  | 1 |  |  |  | 1,235,777 |  |  |  | 97.9 | % |  |  | 59.97 |  |  |  | N |  |  |  | CBD |
111 Huntington Avenue - The Prudential Center |  | CBD Boston MA |  |  | 1 |  |  |  | 860,455 |  |  |  | 97.3 | % |  |  | 63.02 |  |  |  | N |  |  |  | CBD |
Atlantic Wharf Office (55% ownership) |  | CBD Boston MA |  |  | 1 |  |  |  | 793,827 |  |  |  | 100.0 | % |  |  | 68.97 |  |  |  | N |  |  |  | CBD |
(3) Prudential Center (retail shops) |  | CBD Boston MA |  |  | 1 |  |  |  | 547,962 |  |  |  | 95.3 | % |  |  | 81.56 |  |  |  | N |  |  |  | CBD |
101 Huntington Avenue - The Prudential Center |  | CBD Boston MA |  |  | 1 |  |  |  | 505,583 |  |  |  | 91.7 | % |  |  | 48.03 |  |  |  | N |  |  |  | CBD |
(3) Star Market at the Prudential Center |  | CBD Boston MA |  |  | 1 |  |  |  | 57,235 |  |  |  | 100.0 | % |  |  | 54.37 |  |  |  | N |  |  |  | CBD |
|  |  |  |  | 8 |  |  |  | 6,993,325 |  |  |  | 93.2 | % |  | $ | 62.11 |  |  |  |  |  |  |  |  |
355 Main Street |  | East Cambridge MA |  |  | 1 |  |  |  | 265,342 |  |  |  | 100.0 | % |  | $ | 71.70 |  |  |  | N |  |  |  | CBD |
90 Broadway |  | East Cambridge MA |  |  | 1 |  |  |  | 223,771 |  |  |  | 100.0 | % |  |  | 52.85 |  |  |  | N |  |  |  | CBD |
255 Main Street |  | East Cambridge MA |  |  | 1 |  |  |  | 215,629 |  |  |  | 100.0 | % |  |  | 55.60 |  |  |  | N |  |  |  | CBD |
300 Binney Street |  | East Cambridge MA |  |  | 1 |  |  |  | 195,191 |  |  |  | 100.0 | % |  |  | 53.30 |  |  |  | N |  |  |  | CBD |
150 Broadway |  | East Cambridge MA |  |  | 1 |  |  |  | 177,226 |  |  |  | 100.0 | % |  |  | 47.53 |  |  |  | N |  |  |  | CBD |
105 Broadway |  | East Cambridge MA |  |  | 1 |  |  |  | 152,664 |  |  |  | 100.0 | % |  |  | 61.47 |  |  |  | N |  |  |  | CBD |
325 Main Street |  | East Cambridge MA |  |  | 1 |  |  |  | 115,361 |  |  |  | 100.0 | % |  |  | 47.99 |  |  |  | N |  |  |  | CBD |
250 Binney Street |  | East Cambridge MA |  |  | 1 |  |  |  | 67,362 |  |  |  | 100.0 | % |  |  | 43.40 |  |  |  | N |  |  |  | CBD |
University Place |  | Mid-Cambridge MA |  |  | 1 |  |  |  | 195,282 |  |  |  | 100.0 | % |  |  | 47.80 |  |  |  | Y |  |  |  | CBD |
|  |  |  |  | 9 |  |  |  | 1,607,828 |  |  |  | 100.0 | % |  | $ | 55.27 |  |  |  |  |  |  |  |  |
Bay Colony Corporate Center |  | Route 128 Mass Turnpike MA |  |  | 4 |  |  |  | 995,699 |  |  |  | 78.3 | % |  | $ | 39.32 |  |  |  | N |  |  |  | S |
Reservoir Place |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 526,985 |  |  |  | 99.0 | % |  |  | 35.44 |  |  |  | N |  |  |  | S |
140 Kendrick Street |  | Route 128 Mass Turnpike MA |  |  | 3 |  |  |  | 380,987 |  |  |  | 100.0 | % |  |  | 37.95 |  |  |  | N |  |  |  | S |
Weston Corporate Center |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 356,995 |  |  |  | 100.0 | % |  |  | 52.46 |  |  |  | N |  |  |  | S |
Waltham Weston Corporate Center |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 301,667 |  |  |  | 93.4 | % |  |  | 36.72 |  |  |  | N |  |  |  | S |
230 CityPoint |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 298,890 |  |  |  | 85.9 | % |  |  | 36.12 |  |  |  | N |  |  |  | S |
200 West Street |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 256,245 |  |  |  | 99.3 | % |  |  | 36.81 |  |  |  | N |  |  |  | S |
(4) 10 CityPoint |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 241,460 |  |  |  | 96.6 | % |  |  | 47.18 |  |  |  | N |  |  |  | S |
77 CityPoint |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 209,707 |  |  |  | 100.0 | % |  |  | 47.63 |  |  |  | N |  |  |  | S |
(4)(5) 1265 Main Street (50% ownership) |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 114,969 |  |  |  | 100.0 | % |  |  | 43.86 |  |  |  | Y |  |  |  | S |
(4) Reservoir Place North |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 73,258 |  |  |  | 0.0 | % |  |  | — |  |  |  | N |  |  |  | S |
195 West Street |  | Route 128 Mass Turnpike MA |  |  | 1 |  |  |  | 63,500 |  |  |  | 100.0 | % |  |  | 40.81 |  |  |  | N |  |  |  | S |
Quorum Office Park |  | Route 128 Northwest MA |  |  | 2 |  |  |  | 267,527 |  |  |  | 90.0 | % |  |  | 19.47 |  |  |  | N |  |  |  | S |
Lexington Office Park |  | Route 128 Northwest MA |  |  | 2 |  |  |  | 166,606 |  |  |  | 71.2 | % |  |  | 27.03 |  |  |  | N |  |  |  | S |
91 Hartwell Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 119,216 |  |  |  | 93.2 | % |  |  | 27.78 |  |  |  | N |  |  |  | S |
201 Spring Street |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 106,300 |  |  |  | 100.0 | % |  |  | 37.82 |  |  |  | N |  |  |  | S |
33 Hayden Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 80,872 |  |  |  | 100.0 | % |  |  | 43.26 |  |  |  | N |  |  |  | S |
32 Hartwell Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 69,154 |  |  |  | 100.0 | % |  |  | 28.28 |  |  |  | N |  |  |  | S |
164 Lexington Road |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 64,140 |  |  |  | 0.0 | % |  |  | — |  |  |  | N |  |  |  | S |
100 Hayden Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 55,924 |  |  |  | 100.0 | % |  |  | 41.63 |  |  |  | N |  |  |  | S |
181 Spring Street |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 55,793 |  |  |  | 100.0 | % |  |  | 31.13 |  |  |  | N |  |  |  | S |
92 Hayden Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 31,100 |  |  |  | 100.0 | % |  |  | 41.81 |  |  |  | N |  |  |  | S |
17 Hartwell Avenue |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 30,000 |  |  |  | 100.0 | % |  |  | 50.68 |  |  |  | N |  |  |  | S |
(3) The Point |  | Route 128 Northwest MA |  |  | 1 |  |  |  | 16,300 |  |  |  | 84.7 | % |  |  | 52.44 |  |  |  | N |  |  |  | S |
|  |  |  |  | 31 |  |  |  | 4,883,294 |  |  |  | 89.4 | % |  | $ | 38.47 |  |  |  |  |  |  |  |  |
|  | Total Boston Office: |  |  | 48 |  |  |  | 13,484,447 |  |  |  | 92.6 | % |  | $ | 52.91 |  |  |  |  |  |  |  |  |
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Lofts at Atlantic Wharf (86 units) |  | CBD Boston MA |  |  | 1 |  |  |  | 87,097 |  |  |  |  |  |  |  |  |  |  |  | N |  |  |  | CBD |
|  | Total Boston Residential: |  |  | 1 |  |  |  | 87,097 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Hotel |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Boston Marriott Cambridge (433 rooms) |  | East Cambridge MA |  |  | 1 |  |  |  | 334,260 |  |  |  |  |  |  |  |  |  |  |  | N |  |  |  | CBD |
|  | Total Boston Hotel: |  |  | 1 |  |  |  | 334,260 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Total Boston: |  |  | 50 |  |  |  | 13,905,804 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

(1) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

(2) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(3) | This is a retail property.

(4) | Not included in Same Property analysis.

(5) | This is an unconsolidated joint venture property.

27

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE PROPERTY LISTING (continued)

as of June 30, 2017

|  | Sub Market |  | Number of Buildings |  |  | Square Feet |  |  | Leased % (1) |  |  | Annualized Rental Obligations Per Leased SF (2) |  |  | Encumbered with secured debt (Y/N) |  |  | Central Business District (CBD) or Suburban (S) |
New York |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Office |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
767 Fifth Avenue (The GM Building) (60% ownership) |  | Plaza District NY |  |  | 1 |  |  |  | 1,847,237 |  |  |  | 92.9 | % |  | $ | 150.17 |  |  |  | Y |  |  |  | CBD |
399 Park Avenue |  | Park Avenue NY |  |  | 1 |  |  |  | 1,713,251 |  |  |  | 86.9 | % |  |  | 89.34 |  |  |  | N |  |  |  | CBD |
(3) 601 Lexington Avenue (55% ownership) |  | Park Avenue NY |  |  | 1 |  |  |  | 1,437,044 |  |  |  | 98.7 | % |  |  | 96.14 |  |  |  | Y |  |  |  | CBD |
599 Lexington Avenue |  | Park Avenue NY |  |  | 1 |  |  |  | 1,059,041 |  |  |  | 94.3 | % |  |  | 88.54 |  |  |  | N |  |  |  | CBD |
Times Square Tower (55% ownership) |  | Times Square NY |  |  | 1 |  |  |  | 1,252,191 |  |  |  | 96.2 | % |  |  | 78.57 |  |  |  | N |  |  |  | CBD |
250 West 55th Street |  | Times Square / West Side NY |  |  | 1 |  |  |  | 980,927 |  |  |  | 86.2 | % |  |  | 87.30 |  |  |  | N |  |  |  | CBD |
510 Madison Avenue |  | Fifth/Madison Avenue NY |  |  | 1 |  |  |  | 355,598 |  |  |  | 100.0 | % |  |  | 124.90 |  |  |  | N |  |  |  | CBD |
(4) 540 Madison Avenue (60% ownership) |  | Fifth/Madison Avenue NY |  |  | 1 |  |  |  | 283,715 |  |  |  | 92.6 | % |  |  | 101.11 |  |  |  | Y |  |  |  | CBD |
|  |  |  |  | 8 |  |  |  | 8,929,004 |  |  |  | 92.9 | % |  | $ | 103.14 |  |  |  |  |  |  |  |  |
One Tower Center |  | East Brunswick NJ |  |  | 1 |  |  |  | 412,997 |  |  |  | 21.7 | % |  | $ | 32.11 |  |  |  | N |  |  |  | S |
510 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 234,160 |  |  |  | 100.0 | % |  |  | 34.50 |  |  |  | N |  |  |  | S |
210 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 159,468 |  |  |  | 100.0 | % |  |  | 37.37 |  |  |  | N |  |  |  | S |
206 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 161,763 |  |  |  | 100.0 | % |  |  | 31.79 |  |  |  | N |  |  |  | S |
212 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 151,547 |  |  |  | 86.9 | % |  |  | 37.07 |  |  |  | N |  |  |  | S |
214 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 148,942 |  |  |  | 61.2 | % |  |  | 35.42 |  |  |  | N |  |  |  | S |
506 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 140,312 |  |  |  | 27.7 | % |  |  | 40.05 |  |  |  | N |  |  |  | S |
508 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 134,433 |  |  |  | 100.0 | % |  |  | 34.42 |  |  |  | N |  |  |  | S |
202 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 134,381 |  |  |  | 82.5 | % |  |  | 38.06 |  |  |  | N |  |  |  | S |
(5) 804 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 130,000 |  |  |  | 100.0 | % |  |  | 37.10 |  |  |  | N |  |  |  | S |
504 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 121,990 |  |  |  | 99.4 | % |  |  | 30.75 |  |  |  | N |  |  |  | S |
101 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 121,620 |  |  |  | 100.0 | % |  |  | 36.35 |  |  |  | N |  |  |  | S |
502 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 121,460 |  |  |  | 71.8 | % |  |  | 35.85 |  |  |  | N |  |  |  | S |
701 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 120,000 |  |  |  | 100.0 | % |  |  | 39.76 |  |  |  | N |  |  |  | S |
104 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 102,830 |  |  |  | 39.2 | % |  |  | 36.41 |  |  |  | N |  |  |  | S |
(5) 103 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 96,332 |  |  |  | 83.4 | % |  |  | 28.90 |  |  |  | N |  |  |  | S |
105 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 69,955 |  |  |  | 56.3 | % |  |  | 33.04 |  |  |  | N |  |  |  | S |
302 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 64,926 |  |  |  | 100.0 | % |  |  | 33.70 |  |  |  | N |  |  |  | S |
211 Carnegie Center |  | Princeton NJ |  |  | 1 |  |  |  | 47,025 |  |  |  | 100.0 | % |  |  | 33.40 |  |  |  | N |  |  |  | S |
201 Carnegie Center |  | Princeton NJ |  |  | — |  |  |  | 6,500 |  |  |  | 100.0 | % |  |  | 33.72 |  |  |  | N |  |  |  | S |
|  |  |  |  | 19 |  |  |  | 2,680,641 |  |  |  | 75.0 | % |  | $ | 35.06 |  |  |  |  |  |  |  |  |
|  | Total New York: |  |  | 27 |  |  |  | 11,609,645 |  |  |  | 88.7 | % |  | $ | 89.85 |  |  |  |  |  |  |  |  |
San Francisco and Los Angeles |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Office |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Embarcadero Center Four |  | CBD San Francisco CA |  |  | 1 |  |  |  | 938,071 |  |  |  | 88.7 | % |  | $ | 69.02 |  |  |  | N |  |  |  | CBD |
Embarcadero Center One |  | CBD San Francisco CA |  |  | 1 |  |  |  | 831,506 |  |  |  | 94.7 | % |  |  | 62.01 |  |  |  | N |  |  |  | CBD |
Embarcadero Center Two |  | CBD San Francisco CA |  |  | 1 |  |  |  | 788,929 |  |  |  | 94.8 | % |  |  | 67.73 |  |  |  | N |  |  |  | CBD |
Embarcadero Center Three |  | CBD San Francisco CA |  |  | 1 |  |  |  | 781,160 |  |  |  | 89.7 | % |  |  | 61.09 |  |  |  | N |  |  |  | CBD |
680 Folsom Street |  | CBD San Francisco CA |  |  | 2 |  |  |  | 524,793 |  |  |  | 98.9 | % |  |  | 60.31 |  |  |  | N |  |  |  | CBD |
535 Mission Street |  | CBD San Francisco CA |  |  | 1 |  |  |  | 307,235 |  |  |  | 100.0 | % |  |  | 74.60 |  |  |  | N |  |  |  | CBD |
690 Folsom Street |  | CBD San Francisco CA |  |  | 1 |  |  |  | 26,080 |  |  |  | 100.0 | % |  |  | 72.62 |  |  |  | N |  |  |  | CBD |
|  |  |  |  | 8 |  |  |  | 4,197,774 |  |  |  | 93.4 | % |  | $ | 65.23 |  |  |  |  |  |  |  |  |
601 and 651 Gateway |  | South San Francisco CA |  |  | 2 |  |  |  | 506,279 |  |  |  | 98.0 | % |  | $ | 41.00 |  |  |  | N |  |  |  | S |
611 Gateway |  | South San Francisco CA |  |  | 1 |  |  |  | 260,337 |  |  |  | 35.4 | % |  |  | 39.14 |  |  |  | N |  |  |  | S |
Mountain View Research Park |  | Mountain View CA |  |  | 15 |  |  |  | 540,433 |  |  |  | 100.0 | % |  |  | 43.71 |  |  |  | N |  |  |  | S |
2440 West El Camino Real |  | Mountain View CA |  |  | 1 |  |  |  | 141,392 |  |  |  | 100.0 | % |  |  | 60.92 |  |  |  | N |  |  |  | S |
453 Ravendale Drive |  | Mountain View CA |  |  | 1 |  |  |  | 29,620 |  |  |  | 65.7 | % |  |  | 32.78 |  |  |  | N |  |  |  | S |
(5)(6) 3625-3635 Peterson Way |  | Santa Clara CA |  |  | 1 |  |  |  | 218,366 |  |  |  | 100.0 | % |  |  | 22.22 |  |  |  | N |  |  |  | S |
(6) North First Business Park |  | San Jose CA |  |  | 5 |  |  |  | 190,636 |  |  |  | 87.2 | % |  |  | 23.03 |  |  |  | N |  |  |  | S |
|  |  |  |  | 26 |  |  |  | 1,887,063 |  |  |  | 88.7 | % |  | $ | 39.14 |  |  |  |  |  |  |  |  |
(4)(5) Colorado Center (49.8% ownership) |  | West Los Angeles CA |  |  | 6 |  |  |  | 1,117,557 |  |  |  | 82.3 | % |  | $ | 58.16 |  |  |  | N |  |  |  | CBD |
|  | Total San Francisco and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Los Angeles: |  |  | 40 |  |  |  | 7,202,394 |  |  |  | 90.4 | % |  | $ | 57.53 |  |  |  |  |  |  |  |  |

(1) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

(2) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(3) | Approximately 13% of this complex was removed from the in-service portfolio upon commencement of construction of the planned redevelopment that occurred during the third quarter of 2016. As a result, the portion related to the planned redevelopment is not included in the Company’s Same Property analysis.

(4) | This is an unconsolidated joint venture property.

(5) | Not included in Same Property analysis.

(6) | Property held for redevelopment.

28

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE PROPERTY LISTING (continued)

as of June 30, 2017

|  | Sub Market |  | Number of Buildings |  |  | Square Feet |  |  | Leased % (1) |  |  | Annualized Rental Obligations Per Leased SF (2) |  |  | Encumbered with secured debt (Y/N) |  |  | Central Business District (CBD) or Suburban (S)
Washington, DC |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Office |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Capital Gallery |  | Southwest Washington DC |  |  | 1 |  |  |  | 631,029 |  |  |  | 99.8 | % |  | $ | 60.67 |  |  |  | N |  |  | CBD
500 E Street, S.W. |  | Southwest Washington DC |  |  | 1 |  |  |  | 251,994 |  |  |  | 100.0 | % |  |  | 49.46 |  |  |  | N |  |  | CBD
(3)(4) Metropolitan Square (20% ownership) |  | East End Washington DC |  |  | 1 |  |  |  | 607,041 |  |  |  | 72.8 | % |  |  | 62.47 |  |  |  | Y |  |  | CBD
(3) 901 New York Avenue (25% ownership) |  | East End Washington DC |  |  | 1 |  |  |  | 539,680 |  |  |  | 89.8 | % |  |  | 66.23 |  |  |  | Y |  |  | CBD
(5) 601 Massachusetts Avenue |  | East End Washington DC |  |  | 1 |  |  |  | 478,751 |  |  |  | 91.8 | % |  |  | 73.27 |  |  |  | N |  |  | CBD
(3) Market Square North (50% ownership) |  | East End Washington DC |  |  | 1 |  |  |  | 415,756 |  |  |  | 74.1 | % |  |  | 66.80 |  |  |  | Y |  |  | CBD
2200 Pennsylvania Avenue |  | CBD Washington DC |  |  | 1 |  |  |  | 458,831 |  |  |  | 100.0 | % |  |  | 90.58 |  |  |  | N |  |  | CBD
1333 New Hampshire Avenue |  | CBD Washington DC |  |  | 1 |  |  |  | 315,371 |  |  |  | 99.0 | % |  |  | 47.71 |  |  |  | N |  |  | CBD
1330 Connecticut Avenue |  | CBD Washington DC |  |  | 1 |  |  |  | 253,121 |  |  |  | 98.0 | % |  |  | 61.30 |  |  |  | N |  |  | CBD
Sumner Square |  | CBD Washington DC |  |  | 1 |  |  |  | 208,892 |  |  |  | 98.5 | % |  |  | 51.08 |  |  |  | N |  |  | CBD
(3) 500 North Capitol Street, N.W. (30% ownership) |  | Capitol Hill Washington DC |  |  | 1 |  |  |  | 230,860 |  |  |  | 100.0 | % |  |  | 69.08 |  |  |  | Y |  |  | CBD
|  |  |  |  | 11 |  |  |  | 4,391,326 |  |  |  | 91.3 | % |  | $ | 64.99 |  |  |  |  |  |  |
South of Market |  | Reston VA |  |  | 3 |  |  |  | 623,666 |  |  |  | 98.9 | % |  | $ | 56.56 |  |  |  | N |  |  | S
Fountain Square |  | Reston VA |  |  | 2 |  |  |  | 518,345 |  |  |  | 88.8 | % |  |  | 49.65 |  |  |  | N |  |  | S
One Freedom Square |  | Reston VA |  |  | 1 |  |  |  | 432,585 |  |  |  | 99.7 | % |  |  | 48.34 |  |  |  | N |  |  | S
Two Freedom Square |  | Reston VA |  |  | 1 |  |  |  | 421,757 |  |  |  | 100.0 | % |  |  | 47.56 |  |  |  | N |  |  | S
One and Two Discovery Square |  | Reston VA |  |  | 2 |  |  |  | 366,990 |  |  |  | 87.5 | % |  |  | 44.93 |  |  |  | N |  |  | S
One Reston Overlook |  | Reston VA |  |  | 1 |  |  |  | 319,519 |  |  |  | 100.0 | % |  |  | 39.58 |  |  |  | N |  |  | S
Reston Corporate Center |  | Reston VA |  |  | 2 |  |  |  | 261,046 |  |  |  | 100.0 | % |  |  | 40.76 |  |  |  | N |  |  | S
Democracy Tower |  | Reston VA |  |  | 1 |  |  |  | 259,441 |  |  |  | 100.0 | % |  |  | 60.85 |  |  |  | N |  |  | S
(6) Fountain Square Retail |  | Reston VA |  |  | 1 |  |  |  | 237,209 |  |  |  | 97.4 | % |  |  | 52.23 |  |  |  | N |  |  | S
Two Reston Overlook |  | Reston VA |  |  | 1 |  |  |  | 134,615 |  |  |  | 100.0 | % |  |  | 38.91 |  |  |  | N |  |  | S
|  |  |  |  | 15 |  |  |  | 3,575,173 |  |  |  | 96.7 | % |  | $ | 49.00 |  |  |  |  |  |  |
Wisconsin Place Office |  | Montgomery County MD |  |  | 1 |  |  |  | 299,186 |  |  |  | 100.0 | % |  | $ | 50.64 |  |  |  | N |  |  | S
2600 Tower Oaks Boulevard |  | Montgomery County MD |  |  | 1 |  |  |  | 179,421 |  |  |  | 52.5 | % |  |  | 33.03 |  |  |  | N |  |  | S
New Dominion Technology Park - Building Two |  | Herndon VA |  |  | 1 |  |  |  | 257,400 |  |  |  | 100.0 | % |  |  | 42.78 |  |  |  | N |  |  | S
New Dominion Technology Park - Building One |  | Herndon VA |  |  | 1 |  |  |  | 235,201 |  |  |  | 100.0 | % |  |  | 35.42 |  |  |  | Y |  |  | S
Kingstowne Two |  | Springfield VA |  |  | 1 |  |  |  | 156,251 |  |  |  | 76.6 | % |  |  | 41.11 |  |  |  | N |  |  | S
Kingstowne One |  | Springfield VA |  |  | 1 |  |  |  | 151,483 |  |  |  | 75.6 | % |  |  | 41.32 |  |  |  | N |  |  | S
7601 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 114,028 |  |  |  | 100.0 | % |  |  | 18.88 |  |  |  | N |  |  | S
7435 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 103,557 |  |  |  | 83.4 | % |  |  | 22.90 |  |  |  | N |  |  | S
8000 Grainger Court |  | Springfield VA |  |  | 1 |  |  |  | 88,775 |  |  |  | 100.0 | % |  |  | 20.93 |  |  |  | N |  |  | S
(6) Kingstowne Retail |  | Springfield VA |  |  | 1 |  |  |  | 88,288 |  |  |  | 100.0 | % |  |  | 36.37 |  |  |  | N |  |  | S
7500 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 79,971 |  |  |  | 100.0 | % |  |  | 16.58 |  |  |  | N |  |  | S
7501 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 75,756 |  |  |  | 100.0 | % |  |  | 28.84 |  |  |  | N |  |  | S
7450 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 62,402 |  |  |  | 100.0 | % |  |  | 17.55 |  |  |  | N |  |  | S
7374 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 57,321 |  |  |  | 100.0 | % |  |  | 18.03 |  |  |  | N |  |  | S
8000 Corporate Court |  | Springfield VA |  |  | 1 |  |  |  | 52,539 |  |  |  | 100.0 | % |  |  | 14.38 |  |  |  | N |  |  | S
7451 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 45,615 |  |  |  | 67.4 | % |  |  | 26.58 |  |  |  | N |  |  | S
7300 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 32,000 |  |  |  | 0.0 | % |  |  | — |  |  |  | N |  |  | S
7375 Boston Boulevard |  | Springfield VA |  |  | 1 |  |  |  | 26,865 |  |  |  | 79.2 | % |  |  | 28.77 |  |  |  | N |  |  | S
(3) Annapolis Junction Building Seven (50% ownership) |  | Anne Arundel County MD |  |  | 1 |  |  |  | 127,229 |  |  |  | 100.0 | % |  |  | 31.79 |  |  |  | Y |  |  | S
(3) Annapolis Junction Building Eight (50% ownership) |  | Anne Arundel County MD |  |  | 1 |  |  |  | 125,685 |  |  |  | 0.0 | % |  |  | — |  |  |  | Y |  |  | S
(3) Annapolis Junction Building Six (50% ownership) |  | Anne Arundel County MD |  |  | 1 |  |  |  | 119,339 |  |  |  | 75.2 | % |  |  | 30.03 |  |  |  | Y |  |  | S
(3) Annapolis Junction Building One (50% ownership) |  | Anne Arundel County MD |  |  | 1 |  |  |  | 117,599 |  |  |  | 31.4 | % |  |  | 106.61 |  |  |  | Y |  |  | S
|  |  |  |  | 22 |  |  |  | 2,595,911 |  |  |  | 82.1 | % |  | $ | 35.17 |  |  |  |  |  |  |
|  | Total Washington Office: |  |  | 48 |  |  |  | 10,562,410 |  |  |  | 90.9 | % |  | $ | 52.61 |  |  |  |  |  |  |
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
The Avant at Reston Town Center (359 units) |  | Reston VA |  |  | 1 |  |  |  | 355,374 |  |  |  |  |  |  |  |  |  |  |  | N |  |  | S
|  | Total Washington Residential: |  |  | 1 |  |  |  | 355,374 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Total Washington, DC: |  |  | 49 |  |  |  | 10,917,784 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Total In-Service Properties: |  |  | 166 |  |  |  | 43,635,627 |  |  |  | 90.8 | %(7) |  | $ | 63.39 |  |  |  | (7 | ) |  |

(1) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP.

(2) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(3) | This is an unconsolidated joint venture property.

(4) | On October 20, 2016, the Company and its partner in the unconsolidated joint venture that owns Metropolitan Square, completed the sale of an 80% interest in the joint venture. Prior to the sale, the Company owned a 51% interest in the joint venture. Following the sale, the Company continues to own a 20% interest in the joint venture. As a result, 31% of operating activities prior to the sale is not included in the Company’s Same Property analysis.

(5) | Not included in Same Property analysis.

(6) | This is a retail property.

(7) | Excludes Hotel and Residential properties. For disclosures relating to the Company’s Hotel and Residential properties, see page 24.

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SECOND QUARTER 2017

OCCUPANCY BY LOCATION

Total In-Service Properties (1)

|  | CBD |  |  | Suburban |  |  | Total |
Location |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | 30-Jun-17 |  |  | 30-Jun-16 |
Boston |  |  | 94.4 | % |  |  | 92.4 | % |  |  | 89.4 | % |  |  | 89.4 | % |  |  | 92.6 | % |  |  | 91.3 | %
New York |  |  | 92.9 | % |  |  | 94.3 | % |  |  | 75.0 | % |  |  | 78.2 | % |  |  | 88.7 | % |  |  | 90.7 | %
San Francisco and Los Angeles |  |  | 91.0 | % |  |  | 91.2 | % |  |  | 88.7 | % |  |  | 89.1 | % |  |  | 90.4 | % |  |  | 90.5 | %
Washington, DC |  |  | 91.3 | % |  |  | 92.1 | % |  |  | 90.6 | % |  |  | 89.0 | % |  |  | 90.9 | % |  |  | 90.3 | %
Total Portfolio |  |  | 92.8 | % |  |  | 92.8 | % |  |  | 87.3 | % |  |  | 87.4 | % |  |  | 90.8 | % |  |  | 90.8 | %

Same Property Portfolio (1) (2)

|  | CBD |  |  | Suburban |  |  | Total |
Location |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | 30-Jun-17 |  |  | 30-Jun-16 |  |  | 30-Jun-17 |  |  | 30-Jun-16 |
Boston |  |  | 94.4 | % |  |  | 92.4 | % |  |  | 90.2 | % |  |  | 89.4 | % |  |  | 93.0 | % |  |  | 91.4 | %
New York |  |  | 92.9 | % |  |  | 95.2 | % |  |  | 73.4 | % |  |  | 77.1 | % |  |  | 88.7 | % |  |  | 91.3 | %
San Francisco and Los Angeles |  |  | 93.4 | % |  |  | 91.2 | % |  |  | 87.2 | % |  |  | 87.7 | % |  |  | 91.6 | % |  |  | 90.2 | %
Washington, DC |  |  | 91.3 | % |  |  | 92.7 | % |  |  | 90.6 | % |  |  | 89.0 | % |  |  | 90.8 | % |  |  | 90.5 | %
Total Portfolio |  |  | 93.2 | % |  |  | 93.2 | % |  |  | 87.2 | % |  |  | 87.0 | % |  |  | 91.0 | % |  |  | 90.9 | %

(1) | Represents signed leases for which revenue recognition has commenced in accordance with GAAP. Includes 100% of joint venture properties. Does not include residential and hotel properties.

(2) | For disclosures related to the Company’s definition of Same Properties, see page 48.

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SECOND QUARTER 2017

TOP 20 TENANTS LISTING AND PORTFOLIO TENANT DIVERSIFICATION

TOP 20 TENANTS (1)

|  | Tenant |  | % of BXP’s Share of Annualized Rental Obligations |
1. |  | Arnold & Porter Kaye Scholer |  |  | 3.22 | %
2. |  | US Government |  |  | 2.75 | %
3. |  | Biogen |  |  | 1.93 | %
4. |  | Shearman & Sterling |  |  | 1.82 | %
5. |  | Kirkland & Ellis |  |  | 1.66 | %
6. |  | Citibank |  |  | 1.60 | %
7. |  | Ropes & Gray |  |  | 1.55 | %
8. |  | O’Melveny & Myers |  |  | 1.29 | %
9. |  | Wellington Management |  |  | 1.21 | %
10. |  | Bank of America |  |  | 1.18 | %
11. |  | Google |  |  | 1.09 | %
12. |  | Weil Gotshal & Manges |  |  | 1.06 | %
13. |  | Aramis (Estee Lauder) |  |  | 1.01 | %
14. |  | Mass Financial Services |  |  | 0.96 | %
15. |  | Microsoft |  |  | 0.85 | %
16. |  | Morrison & Foerster |  |  | 0.85 | %
17. |  | Morgan Lewis & Bockius |  |  | 0.84 | %
18. |  | Hunton & Williams |  |  | 0.84 | %
19. |  | WeWork |  |  | 0.83 | %
20. |  | Starr Indemnity & Liability Co. |  |  | 0.82 | %
|  | BXP’s Share of Annualized Rental Obligations |  |  | 27.36 | %
|  | BXP’s Share of Square Feet |  |  | 23.20 | %

NOTABLE SIGNED DEALS (2)

Tenant |  | Property |  | Square Feet |
salesforce.com |  | Salesforce Tower |  |  | 881,000 |
Marriott International |  | 7750 Wisconsin Avenue |  |  | 720,000 |
Akamai Technologies |  | 145 Broadway |  |  | 476,583 |

TENANT DIVERSIFICATION (1)

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations and Rental Obligations, see pages 47-48.

(2) | Represents leases signed with occupancy commencing in the future.

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SECOND QUARTER 2017

LEASE EXPIRATIONS (1) (2) (3)

IN-SERVICE OFFICE PROPERTIES

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  | Current Annualized Rental Obligations Under Expiring Leases |  | Current Annualized Rental Obligations Under Expiring Leases p.s.f. |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  | Annualized Rental Obligations Under Expiring Leases with future step-ups - p.s.f. |  | Percentage of Total Square Feet
2017 |  | 1,460,397 |  | $97,212,565 |  | $66.57 |  | $98,337,821 |  | $67.34 |  | 3.78%(4)
2018 |  | 1,427,350 |  | 87,874,352 |  | 61.56 |  | 88,974,265 |  | 62.34 |  | 3.70%
2019 |  | 3,376,691 |  | 181,543,962 |  | 53.76 |  | 185,268,004 |  | 54.87 |  | 8.75%
2020 |  | 4,070,475 |  | 248,399,274 |  | 61.02 |  | 254,803,952 |  | 62.60 |  | 10.55%
2021 |  | 3,756,862 |  | 198,929,968 |  | 52.95 |  | 211,733,582 |  | 56.36 |  | 9.74%
2022 |  | 4,198,475 |  | 245,450,664 |  | 58.46 |  | 261,532,005 |  | 62.29 |  | 10.88%
2023 |  | 1,573,598 |  | 89,943,305 |  | 57.16 |  | 103,458,513 |  | 65.75 |  | 4.08%
2024 |  | 2,741,073 |  | 162,002,141 |  | 59.10 |  | 176,829,852 |  | 64.51 |  | 7.10%
2025 |  | 2,442,727 |  | 142,932,967 |  | 58.51 |  | 161,180,575 |  | 65.98 |  | 6.33%
2026 |  | 2,594,637 |  | 196,597,298 |  | 75.77 |  | 216,010,274 |  | 83.25 |  | 6.72%
Thereafter |  | 9,027,133 |  | 617,124,403 |  | 68.36 |  | 802,037,453 |  | 88.85 |  | 23.39%

IN-SERVICE RETAIL PROPERTIES

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases p.s.f. |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups - p.s.f. |  |  | Percentage of Total Square Feet |
2017 |  |  | 89,637 |  |  | $ | 6,687,555 |  |  | $ | 74.61 |  |  | $ | 6,703,555 |  |  | $ | 74.79 |  |  |  | 4.43 | %(4)
2018 |  |  | 107,193 |  |  |  | 17,505,670 |  |  |  | 163.31 |  |  |  | 18,055,845 |  |  |  | 168.44 |  |  |  | 5.30 | %
2019 |  |  | 111,900 |  |  |  | 7,683,005 |  |  |  | 68.66 |  |  |  | 7,777,201 |  |  |  | 69.50 |  |  |  | 5.54 | %
2020 |  |  | 183,516 |  |  |  | 11,683,627 |  |  |  | 63.67 |  |  |  | 11,978,872 |  |  |  | 65.27 |  |  |  | 9.08 | %
2021 |  |  | 159,421 |  |  |  | 21,593,563 |  |  |  | 135.45 |  |  |  | 23,229,718 |  |  |  | 145.71 |  |  |  | 7.89 | %
2022 |  |  | 228,010 |  |  |  | 20,217,966 |  |  |  | 88.67 |  |  |  | 21,939,873 |  |  |  | 96.22 |  |  |  | 11.28 | %
2023 |  |  | 186,635 |  |  |  | 15,140,265 |  |  |  | 81.12 |  |  |  | 16,499,274 |  |  |  | 88.40 |  |  |  | 9.23 | %
2024 |  |  | 114,109 |  |  |  | 10,655,391 |  |  |  | 93.38 |  |  |  | 12,137,874 |  |  |  | 106.37 |  |  |  | 5.65 | %
2025 |  |  | 132,139 |  |  |  | 8,700,625 |  |  |  | 65.84 |  |  |  | 9,623,819 |  |  |  | 72.83 |  |  |  | 6.54 | %
2026 |  |  | 111,807 |  |  |  | 13,523,598 |  |  |  | 120.95 |  |  |  | 15,867,901 |  |  |  | 141.92 |  |  |  | 5.53 | %
Thereafter |  |  | 596,842 |  |  |  | 50,543,690 |  |  |  | 84.69 |  |  |  | 81,566,188 |  |  |  | 136.66 |  |  |  | 29.53 | %

TOTAL IN-SERVICE PROPERTIES

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases p.s.f. |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups - p.s.f. |  |  | Percentage of Total Square Feet |
2017 |  |  | 1,550,034 |  |  | $ | 103,900,120 |  |  | $ | 67.03 |  |  | $ | 105,041,375 |  |  | $ | 67.77 |  |  |  | 3.82 | %(4)
2018 |  |  | 1,534,543 |  |  |  | 105,380,022 |  |  |  | 68.67 |  |  |  | 107,030,110 |  |  |  | 69.75 |  |  |  | 3.78 | %
2019 |  |  | 3,488,591 |  |  |  | 189,226,968 |  |  |  | 54.24 |  |  |  | 193,045,205 |  |  |  | 55.34 |  |  |  | 8.59 | %
2020 |  |  | 4,253,991 |  |  |  | 260,082,901 |  |  |  | 61.14 |  |  |  | 266,782,823 |  |  |  | 62.71 |  |  |  | 10.48 | %
2021 |  |  | 3,916,283 |  |  |  | 220,523,532 |  |  |  | 56.31 |  |  |  | 234,963,301 |  |  |  | 60.00 |  |  |  | 9.64 | %
2022 |  |  | 4,426,485 |  |  |  | 265,668,631 |  |  |  | 60.02 |  |  |  | 283,471,878 |  |  |  | 64.04 |  |  |  | 10.90 | %
2023 |  |  | 1,760,233 |  |  |  | 105,083,570 |  |  |  | 59.70 |  |  |  | 119,957,787 |  |  |  | 68.15 |  |  |  | 4.33 | %
2024 |  |  | 2,855,182 |  |  |  | 172,657,533 |  |  |  | 60.47 |  |  |  | 188,967,726 |  |  |  | 66.18 |  |  |  | 7.03 | %
2025 |  |  | 2,574,866 |  |  |  | 151,633,592 |  |  |  | 58.89 |  |  |  | 170,804,394 |  |  |  | 66.34 |  |  |  | 6.34 | %
2026 |  |  | 2,706,444 |  |  |  | 210,120,896 |  |  |  | 77.64 |  |  |  | 231,878,175 |  |  |  | 85.68 |  |  |  | 6.66 | %
Thereafter |  |  | 9,623,975 |  |  |  | 667,668,094 |  |  |  | 69.38 |  |  |  | 883,603,641 |  |  |  | 91.81 |  |  |  | 23.70 | %

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units and hotel.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the current quarter.

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##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE BOSTON REGION PROPERTIES

Lease Expirations - Boston Region (1) (2) (3)

OFFICE

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |
2017 |  |  | 288,962 |  |  | $ | 13,778,511 |  |  | $ | 47.68 |  |  | $ | 14,093,403 |  |  | $ | 48.77 | (4)
2018 |  |  | 367,243 |  |  |  | 15,304,738 |  |  |  | 41.67 |  |  |  | 15,466,649 |  |  |  | 42.12 |
2019 |  |  | 902,399 |  |  |  | 43,366,296 |  |  |  | 48.06 |  |  |  | 43,777,390 |  |  |  | 48.51 |
2020 |  |  | 468,261 |  |  |  | 22,214,984 |  |  |  | 47.44 |  |  |  | 23,844,071 |  |  |  | 50.92 |
2021 |  |  | 1,071,527 |  |  |  | 43,464,417 |  |  |  | 40.56 |  |  |  | 44,601,602 |  |  |  | 41.62 |
2022 |  |  | 1,640,172 |  |  |  | 82,301,759 |  |  |  | 50.18 |  |  |  | 83,953,741 |  |  |  | 51.19 |
2023 |  |  | 574,911 |  |  |  | 30,027,171 |  |  |  | 52.23 |  |  |  | 34,909,455 |  |  |  | 60.72 |
2024 |  |  | 643,580 |  |  |  | 31,435,266 |  |  |  | 48.84 |  |  |  | 34,322,037 |  |  |  | 53.33 |
2025 |  |  | 1,095,331 |  |  |  | 63,754,185 |  |  |  | 58.21 |  |  |  | 70,600,444 |  |  |  | 64.46 |
2026 |  |  | 1,059,333 |  |  |  | 70,294,919 |  |  |  | 66.36 |  |  |  | 77,426,403 |  |  |  | 73.09 |
Thereafter |  |  | 3,548,025 |  |  |  | 186,026,972 |  |  |  | 52.43 |  |  |  | 221,397,092 |  |  |  | 62.40 |

RETAIL

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |
2017 |  |  | 44,248 |  |  | $ | 3,647,179 |  |  | $ | 82.43 |  |  | $ | 3,663,179 |  |  | $ | 82.79 | (4)
2018 |  |  | 25,637 |  |  |  | 3,542,650 |  |  |  | 138.19 |  |  |  | 3,545,470 |  |  |  | 138.30 |
2019 |  |  | 11,787 |  |  |  | 1,917,396 |  |  |  | 162.67 |  |  |  | 1,923,992 |  |  |  | 163.23 |
2020 |  |  | 92,460 |  |  |  | 5,867,657 |  |  |  | 63.46 |  |  |  | 5,999,044 |  |  |  | 64.88 |
2021 |  |  | 37,303 |  |  |  | 2,964,453 |  |  |  | 79.47 |  |  |  | 3,106,529 |  |  |  | 83.28 |
2022 |  |  | 81,347 |  |  |  | 5,017,158 |  |  |  | 61.68 |  |  |  | 5,381,182 |  |  |  | 66.15 |
2023 |  |  | 80,257 |  |  |  | 7,564,831 |  |  |  | 94.26 |  |  |  | 8,042,970 |  |  |  | 100.22 |
2024 |  |  | 70,752 |  |  |  | 4,262,280 |  |  |  | 60.24 |  |  |  | 4,651,948 |  |  |  | 65.75 |
2025 |  |  | 30,224 |  |  |  | 3,621,748 |  |  |  | 119.83 |  |  |  | 4,002,652 |  |  |  | 132.43 |
2026 |  |  | 18,912 |  |  |  | 4,824,385 |  |  |  | 255.10 |  |  |  | 5,669,604 |  |  |  | 299.79 |
Thereafter |  |  | 338,731 |  |  |  | 19,271,719 |  |  |  | 56.89 |  |  |  | 20,119,926 |  |  |  | 59.40 |

TOTAL PROPERTY TYPES

Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |
2017 |  |  | 333,210 |  |  | $ | 17,425,690 |  |  | $ | 52.30 |  |  | $ | 17,756,582 |  |  | $ | 53.29 | (4)
2018 |  |  | 392,880 |  |  |  | 18,847,388 |  |  |  | 47.97 |  |  |  | 19,012,119 |  |  |  | 48.39 |
2019 |  |  | 914,186 |  |  |  | 45,283,692 |  |  |  | 49.53 |  |  |  | 45,701,383 |  |  |  | 49.99 |
2020 |  |  | 560,721 |  |  |  | 28,082,641 |  |  |  | 50.08 |  |  |  | 29,843,115 |  |  |  | 53.22 |
2021 |  |  | 1,108,830 |  |  |  | 46,428,870 |  |  |  | 41.87 |  |  |  | 47,708,130 |  |  |  | 43.03 |
2022 |  |  | 1,721,519 |  |  |  | 87,318,917 |  |  |  | 50.72 |  |  |  | 89,334,924 |  |  |  | 51.89 |
2023 |  |  | 655,168 |  |  |  | 37,592,002 |  |  |  | 57.38 |  |  |  | 42,952,425 |  |  |  | 65.56 |
2024 |  |  | 714,332 |  |  |  | 35,697,546 |  |  |  | 49.97 |  |  |  | 38,973,985 |  |  |  | 54.56 |
2025 |  |  | 1,125,555 |  |  |  | 67,375,932 |  |  |  | 59.86 |  |  |  | 74,603,096 |  |  |  | 66.28 |
2026 |  |  | 1,078,245 |  |  |  | 75,119,304 |  |  |  | 69.67 |  |  |  | 83,096,007 |  |  |  | 77.07 |
Thereafter |  |  | 3,886,756 |  |  |  | 205,298,691 |  |  |  | 52.82 |  |  |  | 241,517,018 |  |  |  | 62.14 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units and hotel.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the current quarter.

33

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE BOSTON REGION PROPERTIES

Quarterly Lease Expirations - Boston Region (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 8,550 |  |  |  | 247,824 |  |  |  | 28.99 |  |  |  | 247,824 |  |  |  | 28.99 | (4)
Q3 2017 |  |  | 88,348 |  |  |  | 3,681,764 |  |  |  | 41.67 |  |  |  | 3,935,428 |  |  |  | 44.54 |
Q4 2017 |  |  | 192,064 |  |  |  | 9,848,924 |  |  |  | 51.28 |  |  |  | 9,910,152 |  |  |  | 51.60 |
Total 2017 |  |  | 288,962 |  |  | $ | 13,778,511 |  |  | $ | 47.68 |  |  | $ | 14,093,403 |  |  | $ | 48.77 |
Q1 2018 |  |  | 51,835 |  |  | $ | 2,233,350 |  |  | $ | 43.09 |  |  | $ | 2,233,350 |  |  | $ | 43.09 |
Q2 2018 |  |  | 107,291 |  |  |  | 4,559,462 |  |  |  | 42.50 |  |  |  | 4,566,020 |  |  |  | 42.56 |
Q3 2018 |  |  | 32,969 |  |  |  | 1,406,871 |  |  |  | 42.67 |  |  |  | 1,416,879 |  |  |  | 42.98 |
Q4 2018 |  |  | 175,148 |  |  |  | 7,105,055 |  |  |  | 40.57 |  |  |  | 7,250,400 |  |  |  | 41.40 |
Total 2018 |  |  | 367,243 |  |  | $ | 15,304,738 |  |  | $ | 41.67 |  |  | $ | 15,466,649 |  |  | $ | 42.12 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 2 |  |  |  | 112,000 |  |  |  | 55,999.98 |  |  |  | 112,000 |  |  |  | 55,999.98 | (4)
Q3 2017 |  |  | 32,112 |  |  |  | 2,598,383 |  |  |  | 80.92 |  |  |  | 2,614,383 |  |  |  | 81.41 |
Q4 2017 |  |  | 12,134 |  |  |  | 936,796 |  |  |  | 77.20 |  |  |  | 936,796 |  |  |  | 77.20 |
Total 2017 |  |  | 44,248 |  |  | $ | 3,647,179 |  |  | $ | 82.43 |  |  | $ | 3,663,179 |  |  | $ | 82.79 |
Q1 2018 |  |  | 1,974 |  |  | $ | 525,072 |  |  | $ | 265.99 |  |  | $ | 525,072 |  |  | $ | 265.99 |
Q2 2018 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Q3 2018 |  |  | 1 |  |  |  | 52,000 |  |  |  | 51,999.96 |  |  |  | 52,000 |  |  |  | 51,999.96 |
Q4 2018 |  |  | 23,662 |  |  |  | 2,965,578 |  |  |  | 125.33 |  |  |  | 2,968,398 |  |  |  | 125.45 |
Total 2018 |  |  | 25,637 |  |  | $ | 3,542,650 |  |  | $ | 138.19 |  |  | $ | 3,545,470 |  |  | $ | 138.30 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 8,552 |  |  |  | 359,824 |  |  |  | 42.07 |  |  |  | 359,824 |  |  |  | 42.07 | (4)
Q3 2017 |  |  | 120,460 |  |  |  | 6,280,147 |  |  |  | 52.13 |  |  |  | 6,549,811 |  |  |  | 54.37 |
Q4 2017 |  |  | 204,198 |  |  |  | 10,785,719 |  |  |  | 52.82 |  |  |  | 10,846,947 |  |  |  | 53.12 |
Total 2017 |  |  | 333,210 |  |  | $ | 17,425,690 |  |  | $ | 52.30 |  |  | $ | 17,756,582 |  |  | $ | 53.29 |
Q1 2018 |  |  | 53,809 |  |  | $ | 2,758,422 |  |  | $ | 51.26 |  |  | $ | 2,758,422 |  |  | $ | 51.26 |
Q2 2018 |  |  | 107,291 |  |  |  | 4,559,462 |  |  |  | 42.50 |  |  |  | 4,566,020 |  |  |  | 42.56 |
Q3 2018 |  |  | 32,970 |  |  |  | 1,458,871 |  |  |  | 44.25 |  |  |  | 1,468,878 |  |  |  | 44.55 |
Q4 2018 |  |  | 198,810 |  |  |  | 10,070,633 |  |  |  | 50.65 |  |  |  | 10,218,798 |  |  |  | 51.40 |
Total 2018 |  |  | 392,880 |  |  | $ | 18,847,388 |  |  | $ | 47.97 |  |  | $ | 19,012,119 |  |  | $ | 48.39 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units and hotel.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

34

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE NEW YORK REGION PROPERTIES

Lease Expirations - New York Region (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 633,816 |  |  | $ | 58,561,486 |  |  | $ | 92.40 |  |  | $ | 58,561,486 |  |  | $ | 92.40 | (4)
2018 |  |  | 433,367 |  |  |  | 41,206,868 |  |  |  | 95.09 |  |  |  | 41,233,269 |  |  |  | 95.15 |
2019 |  |  | 524,454 |  |  |  | 41,521,121 |  |  |  | 79.17 |  |  |  | 41,740,307 |  |  |  | 79.59 |
2020 |  |  | 1,601,661 |  |  |  | 122,671,357 |  |  |  | 76.59 |  |  |  | 123,553,666 |  |  |  | 77.14 |
2021 |  |  | 414,907 |  |  |  | 35,373,733 |  |  |  | 85.26 |  |  |  | 35,845,200 |  |  |  | 86.39 |
2022 |  |  | 921,341 |  |  |  | 81,421,204 |  |  |  | 88.37 |  |  |  | 85,848,308 |  |  |  | 93.18 |
2023 |  |  | 133,929 |  |  |  | 10,139,184 |  |  |  | 75.71 |  |  |  | 10,915,395 |  |  |  | 81.50 |
2024 |  |  | 1,059,454 |  |  |  | 73,875,899 |  |  |  | 69.73 |  |  |  | 80,606,530 |  |  |  | 76.08 |
2025 |  |  | 564,148 |  |  |  | 40,397,448 |  |  |  | 71.61 |  |  |  | 44,622,152 |  |  |  | 79.10 |
2026 |  |  | 847,674 |  |  |  | 73,921,297 |  |  |  | 87.20 |  |  |  | 76,742,082 |  |  |  | 90.53 |
Thereafter |  |  | 2,838,166 |  |  |  | 261,850,420 |  |  |  | 92.26 |  |  |  | 357,675,928 |  |  |  | 126.02 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 7,206 |  |  | $ | 1,384,900 |  |  | $ | 192.19 |  |  | $ | 1,384,900 |  |  | $ | 192.19 | (4)
2018 |  |  | 8,691 |  |  |  | 9,232,542 |  |  |  | 1,062.31 |  |  |  | 9,758,264 |  |  |  | 1,122.80 |
2019 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2020 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
2021 |  |  | 26,225 |  |  |  | 12,515,230 |  |  |  | 477.23 |  |  |  | 13,524,391 |  |  |  | 515.71 |
2022 |  |  | 70,721 |  |  |  | 11,159,435 |  |  |  | 157.80 |  |  |  | 12,198,885 |  |  |  | 172.49 |
2023 |  |  | 1,847 |  |  |  | 1,839,144 |  |  |  | 995.75 |  |  |  | 2,256,696 |  |  |  | 1,221.82 |
2024 |  |  | 11,919 |  |  |  | 4,378,804 |  |  |  | 367.38 |  |  |  | 5,225,743 |  |  |  | 438.44 |
2025 |  |  | 1,872 |  |  |  | 654,764 |  |  |  | 349.77 |  |  |  | 730,700 |  |  |  | 390.33 |
2026 |  |  | 34,807 |  |  |  | 4,665,743 |  |  |  | 134.05 |  |  |  | 5,719,108 |  |  |  | 164.31 |
Thereafter |  |  | 112,174 |  |  |  | 24,725,414 |  |  |  | 220.42 |  |  |  | 53,624,650 |  |  |  | 478.05 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 641,022 |  |  | $ | 59,946,387 |  |  | $ | 93.52 |  |  | $ | 59,946,387 |  |  | $ | 93.52 | (4)
2018 |  |  | 442,058 |  |  |  | 50,439,411 |  |  |  | 114.10 |  |  |  | 50,991,533 |  |  |  | 115.35 |
2019 |  |  | 524,454 |  |  |  | 41,521,121 |  |  |  | 79.17 |  |  |  | 41,740,307 |  |  |  | 79.59 |
2020 |  |  | 1,601,661 |  |  |  | 122,671,357 |  |  |  | 76.59 |  |  |  | 123,553,666 |  |  |  | 77.14 |
2021 |  |  | 441,132 |  |  |  | 47,888,963 |  |  |  | 108.56 |  |  |  | 49,369,591 |  |  |  | 111.92 |
2022 |  |  | 992,062 |  |  |  | 92,580,639 |  |  |  | 93.32 |  |  |  | 98,047,193 |  |  |  | 98.83 |
2023 |  |  | 135,776 |  |  |  | 11,978,328 |  |  |  | 88.22 |  |  |  | 13,172,091 |  |  |  | 97.01 |
2024 |  |  | 1,071,373 |  |  |  | 78,254,703 |  |  |  | 73.04 |  |  |  | 85,832,273 |  |  |  | 80.11 |
2025 |  |  | 566,020 |  |  |  | 41,052,212 |  |  |  | 72.53 |  |  |  | 45,352,852 |  |  |  | 80.13 |
2026 |  |  | 882,481 |  |  |  | 78,587,040 |  |  |  | 89.05 |  |  |  | 82,461,190 |  |  |  | 93.44 |
Thereafter |  |  | 2,950,340 |  |  |  | 286,575,834 |  |  |  | 97.13 |  |  |  | 411,300,578 |  |  |  | 139.41 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

35

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE NEW YORK REGION PROPERTIES

Quarterly Lease Expirations - New York Region (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 94,162 |  |  |  | 11,853,956 |  |  |  | 125.89 |  |  |  | 11,853,956 |  |  |  | 125.89 | (4)
Q3 2017 |  |  | 475,078 |  |  |  | 41,172,496 |  |  |  | 86.66 |  |  |  | 41,172,496 |  |  |  | 86.66 |
Q4 2017 |  |  | 64,576 |  |  |  | 5,535,034 |  |  |  | 85.71 |  |  |  | 5,535,034 |  |  |  | 85.71 |
Total 2017 |  |  | 633,816 |  |  | $ | 58,561,486 |  |  | $ | 92.40 |  |  | $ | 58,561,486 |  |  | $ | 92.40 |
Q1 2018 |  |  | 88,939 |  |  | $ | 10,327,130 |  |  | $ | 116.11 |  |  | $ | 10,327,130 |  |  | $ | 116.11 |
Q2 2018 |  |  | 98,399 |  |  |  | 10,122,897 |  |  |  | 102.88 |  |  |  | 10,122,897 |  |  |  | 102.88 |
Q3 2018 |  |  | 136,697 |  |  |  | 12,766,021 |  |  |  | 93.39 |  |  |  | 12,766,021 |  |  |  | 93.39 |
Q4 2018 |  |  | 109,332 |  |  |  | 7,990,820 |  |  |  | 73.09 |  |  |  | 8,017,221 |  |  |  | 73.33 |
Total 2018 |  |  | 433,367 |  |  | $ | 41,206,868 |  |  | $ | 95.09 |  |  | $ | 41,233,269 |  |  | $ | 95.15 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 4,845 |  |  |  | 1,006,086 |  |  |  | 207.65 |  |  |  | 1,006,086 |  |  |  | 207.65 | (4)
Q3 2017 |  |  | 1,600 |  |  |  | 327,428 |  |  |  | 204.64 |  |  |  | 327,428 |  |  |  | 204.64 |
Q4 2017 |  |  | 761 |  |  |  | 51,386 |  |  |  | 67.52 |  |  |  | 51,386 |  |  |  | 67.52 |
Total 2017 |  |  | 7,206 |  |  | $ | 1,384,900 |  |  | $ | 192.19 |  |  | $ | 1,384,900 |  |  | $ | 192.19 |
Q1 2018 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2018 |  |  | 2,177 |  |  |  | 480,551 |  |  |  | 220.74 |  |  |  | 480,551 |  |  |  | 220.74 |
Q3 2018 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Q4 2018 |  |  | 6,514 |  |  |  | 8,751,991 |  |  |  | 1,343.57 |  |  |  | 9,277,713 |  |  |  | 1,424.27 |
Total 2018 |  |  | 8,691 |  |  | $ | 9,232,542 |  |  | $ | 1,062.31 |  |  | $ | 9,758,264 |  |  | $ | 1,122.80 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 99,007 |  |  |  | 12,860,043 |  |  |  | 129.89 |  |  |  | 12,860,043 |  |  |  | 129.89 | (4)
Q3 2017 |  |  | 476,678 |  |  |  | 41,499,924 |  |  |  | 87.06 |  |  |  | 41,499,924 |  |  |  | 87.06 |
Q4 2017 |  |  | 65,337 |  |  |  | 5,586,420 |  |  |  | 85.50 |  |  |  | 5,586,420 |  |  |  | 85.50 |
Total 2017 |  |  | 641,022 |  |  | $ | 59,946,387 |  |  | $ | 93.52 |  |  | $ | 59,946,387 |  |  | $ | 93.52 |
Q1 2018 |  |  | 88,939 |  |  | $ | 10,327,130 |  |  | $ | 116.11 |  |  | $ | 10,327,130 |  |  | $ | 116.11 |
Q2 2018 |  |  | 100,576 |  |  |  | 10,603,448 |  |  |  | 105.43 |  |  |  | 10,603,448 |  |  |  | 105.43 |
Q3 2018 |  |  | 136,697 |  |  |  | 12,766,021 |  |  |  | 93.39 |  |  |  | 12,766,021 |  |  |  | 93.39 |
Q4 2018 |  |  | 115,846 |  |  |  | 16,742,812 |  |  |  | 144.53 |  |  |  | 17,294,934 |  |  |  | 149.29 |
Total 2018 |  |  | 442,058 |  |  | $ | 50,439,411 |  |  | $ | 114.10 |  |  | $ | 50,991,533 |  |  | $ | 115.35 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

36

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE SAN FRANCISCO AND LOS ANGELES REGIONS PROPERTIES

Lease Expirations - San Francisco and Los Angeles Regions (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 273,630 |  |  | $ | 12,612,240 |  |  | $ | 46.09 |  |  | $ | 13,413,223 |  |  | $ | 49.02 | (4)
2018 |  |  | 177,354 |  |  |  | 9,434,528 |  |  |  | 53.20 |  |  |  | 9,510,286 |  |  |  | 53.62 |
2019 |  |  | 867,205 |  |  |  | 43,135,273 |  |  |  | 49.74 |  |  |  | 44,869,657 |  |  |  | 51.74 |
2020 |  |  | 681,422 |  |  |  | 43,475,787 |  |  |  | 63.80 |  |  |  | 44,653,188 |  |  |  | 65.53 |
2021 |  |  | 1,002,686 |  |  |  | 50,804,022 |  |  |  | 50.67 |  |  |  | 55,957,422 |  |  |  | 55.81 |
2022 |  |  | 825,954 |  |  |  | 45,271,838 |  |  |  | 54.81 |  |  |  | 51,179,881 |  |  |  | 61.96 |
2023 |  |  | 406,783 |  |  |  | 27,344,765 |  |  |  | 67.22 |  |  |  | 31,784,122 |  |  |  | 78.14 |
2024 |  |  | 397,923 |  |  |  | 23,329,156 |  |  |  | 58.63 |  |  |  | 24,045,546 |  |  |  | 60.43 |
2025 |  |  | 314,111 |  |  |  | 18,169,731 |  |  |  | 57.84 |  |  |  | 21,427,421 |  |  |  | 68.22 |
2026 |  |  | 280,908 |  |  |  | 19,750,400 |  |  |  | 70.31 |  |  |  | 23,105,867 |  |  |  | 82.25 |
Thereafter |  |  | 931,276 |  |  |  | 62,163,221 |  |  |  | 66.75 |  |  |  | 83,871,988 |  |  |  | 90.06 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 27,241 |  |  | $ | 1,000,611 |  |  | $ | 36.73 |  |  | $ | 1,000,611 |  |  | $ | 36.73 |
2018 |  |  | 35,502 |  |  |  | 2,171,246 |  |  |  | 61.16 |  |  |  | 2,182,093 |  |  |  | 61.46 |
2019 |  |  | 13,325 |  |  |  | 708,312 |  |  |  | 53.16 |  |  |  | 725,413 |  |  |  | 54.44 |
2020 |  |  | 31,336 |  |  |  | 1,965,662 |  |  |  | 62.73 |  |  |  | 2,047,392 |  |  |  | 65.34 |
2021 |  |  | 22,163 |  |  |  | 1,451,584 |  |  |  | 65.50 |  |  |  | 1,519,725 |  |  |  | 68.57 |
2022 |  |  | 37,586 |  |  |  | 1,720,921 |  |  |  | 45.79 |  |  |  | 1,862,253 |  |  |  | 49.55 |
2023 |  |  | 30,950 |  |  |  | 1,755,289 |  |  |  | 56.71 |  |  |  | 1,840,576 |  |  |  | 59.47 |
2024 |  |  | 9,388 |  |  |  | 642,493 |  |  |  | 68.44 |  |  |  | 730,329 |  |  |  | 77.79 |
2025 |  |  | 22,933 |  |  |  | 1,477,978 |  |  |  | 64.45 |  |  |  | 1,671,315 |  |  |  | 72.88 |
2026 |  |  | 24,494 |  |  |  | 1,757,902 |  |  |  | 71.77 |  |  |  | 1,980,777 |  |  |  | 80.87 |
Thereafter |  |  | 31,606 |  |  |  | 1,780,117 |  |  |  | 56.32 |  |  |  | 2,203,126 |  |  |  | 69.71 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 300,871 |  |  | $ | 13,612,850 |  |  | $ | 45.24 |  |  | $ | 14,413,834 |  |  | $ | 47.91 | (4)
2018 |  |  | 212,856 |  |  |  | 11,605,774 |  |  |  | 54.52 |  |  |  | 11,692,379 |  |  |  | 54.93 |
2019 |  |  | 880,530 |  |  |  | 43,843,584 |  |  |  | 49.79 |  |  |  | 45,595,071 |  |  |  | 51.78 |
2020 |  |  | 712,758 |  |  |  | 45,441,449 |  |  |  | 63.75 |  |  |  | 46,700,580 |  |  |  | 65.52 |
2021 |  |  | 1,024,849 |  |  |  | 52,255,606 |  |  |  | 50.99 |  |  |  | 57,477,146 |  |  |  | 56.08 |
2022 |  |  | 863,540 |  |  |  | 46,992,759 |  |  |  | 54.42 |  |  |  | 53,042,135 |  |  |  | 61.42 |
2023 |  |  | 437,733 |  |  |  | 29,100,054 |  |  |  | 66.48 |  |  |  | 33,624,697 |  |  |  | 76.82 |
2024 |  |  | 407,311 |  |  |  | 23,971,649 |  |  |  | 58.85 |  |  |  | 24,775,875 |  |  |  | 60.83 |
2025 |  |  | 337,044 |  |  |  | 19,647,708 |  |  |  | 58.29 |  |  |  | 23,098,736 |  |  |  | 68.53 |
2026 |  |  | 305,402 |  |  |  | 21,508,302 |  |  |  | 70.43 |  |  |  | 25,086,643 |  |  |  | 82.14 |
Thereafter |  |  | 962,882 |  |  |  | 63,943,338 |  |  |  | 66.41 |  |  |  | 86,075,114 |  |  |  | 89.39 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

37

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE SAN FRANCISCO AND LOS ANGELES REGIONS PROPERTIES

Quarterly Lease Expirations - San Francisco and Los Angeles Regions (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 61,656 |  |  |  | 1,355,054 |  |  |  | 21.98 |  |  |  | 1,355,054 |  |  |  | 21.98 | (4)
Q3 2017 |  |  | 90,885 |  |  |  | 3,470,821 |  |  |  | 38.19 |  |  |  | 4,269,557 |  |  |  | 46.98 |
Q4 2017 |  |  | 121,089 |  |  |  | 7,786,364 |  |  |  | 64.30 |  |  |  | 7,788,612 |  |  |  | 64.32 |
Total 2017 |  |  | 273,630 |  |  | $ | 12,612,240 |  |  | $ | 46.09 |  |  | $ | 13,413,223 |  |  | $ | 49.02 |
Q1 2018 |  |  | 66,904 |  |  | $ | 3,681,291 |  |  | $ | 55.02 |  |  | $ | 3,685,914 |  |  | $ | 55.09 |
Q2 2018 |  |  | 51,873 |  |  |  | 3,072,821 |  |  |  | 59.24 |  |  |  | 3,080,092 |  |  |  | 59.38 |
Q3 2018 |  |  | 32,200 |  |  |  | 1,479,516 |  |  |  | 45.95 |  |  |  | 1,519,272 |  |  |  | 47.18 |
Q4 2018 |  |  | 26,377 |  |  |  | 1,200,899 |  |  |  | 45.53 |  |  |  | 1,225,008 |  |  |  | 46.44 |
Total 2018 |  |  | 177,354 |  |  | $ | 9,434,528 |  |  | $ | 53.20 |  |  | $ | 9,510,286 |  |  | $ | 53.62 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Q3 2017 |  |  | 2,664 |  |  |  | 169,548 |  |  |  | 63.64 |  |  |  | 169,548 |  |  |  | 63.64 |
Q4 2017 |  |  | 24,577 |  |  |  | 831,063 |  |  |  | 33.81 |  |  |  | 831,063 |  |  |  | 33.81 |
Total 2017 |  |  | 27,241 |  |  | $ | 1,000,611 |  |  | $ | 36.73 |  |  | $ | 1,000,611 |  |  | $ | 36.73 |
Q1 2018 |  |  | 22,835 |  |  | $ | 1,319,247 |  |  | $ | 57.77 |  |  | $ | 1,319,247 |  |  | $ | 57.77 |
Q2 2018 |  |  | 2,802 |  |  |  | 199,741 |  |  |  | 71.29 |  |  |  | 199,741 |  |  |  | 71.29 |
Q3 2018 |  |  | 2,771 |  |  |  | 135,778 |  |  |  | 49.00 |  |  |  | 137,352 |  |  |  | 49.57 |
Q4 2018 |  |  | 7,094 |  |  |  | 516,480 |  |  |  | 72.81 |  |  |  | 525,753 |  |  |  | 74.11 |
Total 2018 |  |  | 35,502 |  |  | $ | 2,171,246 |  |  | $ | 61.16 |  |  | $ | 2,182,093 |  |  | $ | 61.46 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 61,656 |  |  |  | 1,355,054 |  |  |  | 21.98 |  |  |  | 1,355,054 |  |  |  | 21.98 | (4)
Q3 2017 |  |  | 93,549 |  |  |  | 3,640,369 |  |  |  | 38.91 |  |  |  | 4,439,105 |  |  |  | 47.45 |
Q4 2017 |  |  | 145,666 |  |  |  | 8,617,426 |  |  |  | 59.16 |  |  |  | 8,619,675 |  |  |  | 59.17 |
Total 2017 |  |  | 300,871 |  |  | $ | 13,612,850 |  |  | $ | 45.24 |  |  | $ | 14,413,834 |  |  | $ | 47.91 |
Q1 2018 |  |  | 89,739 |  |  | $ | 5,000,538 |  |  | $ | 55.72 |  |  | $ | 5,005,161 |  |  | $ | 55.77 |
Q2 2018 |  |  | 54,675 |  |  |  | 3,272,562 |  |  |  | 59.85 |  |  |  | 3,279,833 |  |  |  | 59.99 |
Q3 2018 |  |  | 34,971 |  |  |  | 1,615,295 |  |  |  | 46.19 |  |  |  | 1,656,624 |  |  |  | 47.37 |
Q4 2018 |  |  | 33,471 |  |  |  | 1,717,379 |  |  |  | 51.31 |  |  |  | 1,750,761 |  |  |  | 52.31 |
Total 2018 |  |  | 212,856 |  |  | $ | 11,605,774 |  |  | $ | 54.52 |  |  | $ | 11,692,379 |  |  | $ | 54.93 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

38

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE WASHINGTON, DC REGION PROPERTIES

Lease Expirations - Washington, DC Region (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 263,989 |  |  | $ | 12,260,328 |  |  | $ | 46.44 |  |  | $ | 12,269,708 |  |  | $ | 46.48 | (4)
2018 |  |  | 449,386 |  |  |  | 21,928,218 |  |  |  | 48.80 |  |  |  | 22,764,062 |  |  |  | 50.66 |
2019 |  |  | 1,082,633 |  |  |  | 53,521,273 |  |  |  | 49.44 |  |  |  | 54,880,649 |  |  |  | 50.69 |
2020 |  |  | 1,319,131 |  |  |  | 60,037,146 |  |  |  | 45.51 |  |  |  | 62,753,028 |  |  |  | 47.57 |
2021 |  |  | 1,267,742 |  |  |  | 69,287,796 |  |  |  | 54.65 |  |  |  | 75,329,359 |  |  |  | 59.42 |
2022 |  |  | 811,008 |  |  |  | 36,455,864 |  |  |  | 44.95 |  |  |  | 40,550,074 |  |  |  | 50.00 |
2023 |  |  | 457,975 |  |  |  | 22,432,185 |  |  |  | 48.98 |  |  |  | 25,849,542 |  |  |  | 56.44 |
2024 |  |  | 640,116 |  |  |  | 33,361,821 |  |  |  | 52.12 |  |  |  | 37,855,740 |  |  |  | 59.14 |
2025 |  |  | 469,137 |  |  |  | 20,611,603 |  |  |  | 43.94 |  |  |  | 24,530,558 |  |  |  | 52.29 |
2026 |  |  | 406,722 |  |  |  | 32,630,682 |  |  |  | 80.23 |  |  |  | 38,735,922 |  |  |  | 95.24 |
Thereafter |  |  | 1,709,666 |  |  |  | 107,083,790 |  |  |  | 62.63 |  |  |  | 139,092,445 |  |  |  | 81.36 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 10,942 |  |  | $ | 654,865 |  |  | $ | 59.85 |  |  | $ | 654,865 |  |  | $ | 59.85 |
2018 |  |  | 37,363 |  |  |  | 2,559,232 |  |  |  | 68.50 |  |  |  | 2,570,018 |  |  |  | 68.79 |
2019 |  |  | 86,788 |  |  |  | 5,057,298 |  |  |  | 58.27 |  |  |  | 5,127,796 |  |  |  | 59.08 |
2020 |  |  | 59,720 |  |  |  | 3,850,308 |  |  |  | 64.47 |  |  |  | 3,932,436 |  |  |  | 65.85 |
2021 |  |  | 73,730 |  |  |  | 4,662,297 |  |  |  | 63.23 |  |  |  | 5,079,074 |  |  |  | 68.89 |
2022 |  |  | 38,356 |  |  |  | 2,320,452 |  |  |  | 60.50 |  |  |  | 2,497,553 |  |  |  | 65.12 |
2023 |  |  | 73,581 |  |  |  | 3,981,000 |  |  |  | 54.10 |  |  |  | 4,359,032 |  |  |  | 59.24 |
2024 |  |  | 22,050 |  |  |  | 1,371,814 |  |  |  | 62.21 |  |  |  | 1,529,854 |  |  |  | 69.38 |
2025 |  |  | 77,110 |  |  |  | 2,946,135 |  |  |  | 38.21 |  |  |  | 3,219,152 |  |  |  | 41.75 |
2026 |  |  | 33,594 |  |  |  | 2,275,568 |  |  |  | 67.74 |  |  |  | 2,498,412 |  |  |  | 74.37 |
Thereafter |  |  | 114,331 |  |  |  | 4,766,441 |  |  |  | 41.69 |  |  |  | 5,618,487 |  |  |  | 49.14 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 274,931 |  |  | $ | 12,915,193 |  |  | $ | 46.98 |  |  | $ | 12,924,573 |  |  | $ | 47.01 | (4)
2018 |  |  | 486,749 |  |  |  | 24,487,450 |  |  |  | 50.31 |  |  |  | 25,334,079 |  |  |  | 52.05 |
2019 |  |  | 1,169,421 |  |  |  | 58,578,571 |  |  |  | 50.09 |  |  |  | 60,008,445 |  |  |  | 51.31 |
2020 |  |  | 1,378,851 |  |  |  | 63,887,454 |  |  |  | 46.33 |  |  |  | 66,685,463 |  |  |  | 48.36 |
2021 |  |  | 1,341,472 |  |  |  | 73,950,092 |  |  |  | 55.13 |  |  |  | 80,408,433 |  |  |  | 59.94 |
2022 |  |  | 849,364 |  |  |  | 38,776,316 |  |  |  | 45.65 |  |  |  | 43,047,627 |  |  |  | 50.68 |
2023 |  |  | 531,556 |  |  |  | 26,413,185 |  |  |  | 49.69 |  |  |  | 30,208,574 |  |  |  | 56.83 |
2024 |  |  | 662,166 |  |  |  | 34,733,635 |  |  |  | 52.45 |  |  |  | 39,385,593 |  |  |  | 59.48 |
2025 |  |  | 546,247 |  |  |  | 23,557,739 |  |  |  | 43.13 |  |  |  | 27,749,710 |  |  |  | 50.80 |
2026 |  |  | 440,316 |  |  |  | 34,906,250 |  |  |  | 79.28 |  |  |  | 41,234,334 |  |  |  | 93.65 |
Thereafter |  |  | 1,823,997 |  |  |  | 111,850,231 |  |  |  | 61.32 |  |  |  | 144,710,932 |  |  |  | 79.34 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

39

##### Table of Contents

SECOND QUARTER 2017

IN-SERVICE WASHINGTON, DC REGION PROPERTIES

Quarterly Lease Expirations - Washington, DC Region (1) (2) (3)

OFFICE

|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 6,873 |  |  |  | 682,787 |  |  |  | 99.34 |  |  |  | 682,787 |  |  |  | 99.34 | (4)
Q3 2017 |  |  | 90,187 |  |  |  | 4,406,819 |  |  |  | 48.86 |  |  |  | 4,416,199 |  |  |  | 48.97 |
Q4 2017 |  |  | 166,929 |  |  |  | 7,170,722 |  |  |  | 42.96 |  |  |  | 7,170,722 |  |  |  | 42.96 |
Total 2017 |  |  | 263,989 |  |  | $ | 12,260,328 |  |  | $ | 46.44 |  |  | $ | 12,269,708 |  |  | $ | 46.48 |
Q1 2018 |  |  | 107,601 |  |  | $ | 3,311,037 |  |  | $ | 30.77 |  |  | $ | 3,311,037 |  |  | $ | 30.77 |
Q2 2018 |  |  | 155,761 |  |  |  | 9,149,702 |  |  |  | 58.74 |  |  |  | 9,760,270 |  |  |  | 62.66 |
Q3 2018 |  |  | 113,021 |  |  |  | 5,132,766 |  |  |  | 45.41 |  |  |  | 5,258,831 |  |  |  | 46.53 |
Q4 2018 |  |  | 73,003 |  |  |  | 4,334,713 |  |  |  | 59.38 |  |  |  | 4,433,924 |  |  |  | 60.74 |
Total 2018 |  |  | 449,386 |  |  | $ | 21,928,218 |  |  | $ | 48.80 |  |  | $ | 22,764,062 |  |  | $ | 50.66 |
RETAIL |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Q3 2017 |  |  | 6,842 |  |  |  | 455,172 |  |  |  | 66.53 |  |  |  | 455,172 |  |  |  | 66.53 |
Q4 2017 |  |  | 4,100 |  |  |  | 199,693 |  |  |  | 48.71 |  |  |  | 199,693 |  |  |  | 48.71 |
Total 2017 |  |  | 10,942 |  |  | $ | 654,865 |  |  | $ | 59.85 |  |  | $ | 654,865 |  |  | $ | 59.85 |
Q1 2018 |  |  | 7,698 |  |  | $ | 523,569 |  |  | $ | 68.01 |  |  | $ | 523,569 |  |  | $ | 68.01 |
Q2 2018 |  |  | 10,176 |  |  |  | 628,888 |  |  |  | 61.80 |  |  |  | 630,283 |  |  |  | 61.94 |
Q3 2018 |  |  | 8,283 |  |  |  | 577,582 |  |  |  | 69.73 |  |  |  | 584,527 |  |  |  | 70.57 |
Q4 2018 |  |  | 11,206 |  |  |  | 829,193 |  |  |  | 74.00 |  |  |  | 831,638 |  |  |  | 74.21 |
Total 2018 |  |  | 37,363 |  |  | $ | 2,559,232 |  |  | $ | 68.50 |  |  | $ | 2,570,018 |  |  | $ | 68.79 |
TOTAL PROPERTY TYPES |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Lease Expiration |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
by Quarter |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
Q1 2017 |  |  | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Q2 2017 |  |  | 6,873 |  |  |  | 682,787 |  |  |  | 99.34 |  |  |  | 682,787 |  |  |  | 99.34 | (4)
Q3 2017 |  |  | 97,029 |  |  |  | 4,861,990 |  |  |  | 50.11 |  |  |  | 4,871,370 |  |  |  | 50.21 |
Q4 2017 |  |  | 171,029 |  |  |  | 7,370,415 |  |  |  | 43.09 |  |  |  | 7,370,415 |  |  |  | 43.09 |
Total 2017 |  |  | 274,931 |  |  | $ | 12,915,193 |  |  | $ | 46.98 |  |  | $ | 12,924,573 |  |  | $ | 47.01 |
Q1 2018 |  |  | 115,299 |  |  | $ | 3,834,606 |  |  | $ | 33.26 |  |  | $ | 3,834,606 |  |  | $ | 33.26 |
Q2 2018 |  |  | 165,937 |  |  |  | 9,778,590 |  |  |  | 58.93 |  |  |  | 10,390,553 |  |  |  | 62.62 |
Q3 2018 |  |  | 121,304 |  |  |  | 5,710,347 |  |  |  | 47.07 |  |  |  | 5,843,358 |  |  |  | 48.17 |
Q4 2018 |  |  | 84,209 |  |  |  | 5,163,907 |  |  |  | 61.32 |  |  |  | 5,265,562 |  |  |  | 62.53 |
Total 2018 |  |  | 486,749 |  |  | $ | 24,487,450 |  |  | $ | 50.31 |  |  | $ | 25,334,079 |  |  | $ | 52.05 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the quarter.

40

##### Table of Contents

SECOND QUARTER 2017

CBD PROPERTIES

Lease Expirations (1) (2) (3)

|  | Boston |  |  | San Francisco and Los Angeles |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |  |  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |  |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |  |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 246,838 |  |  | $ | 14,396,329 |  |  | $ | 58.32 |  |  | $ | 14,727,221 |  |  | $ | 59.66 | (4) |  |  | 148,705 |  |  | $ | 9,388,360 |  |  | $ | 63.13 |  |  | $ | 9,799,808 |  |  | $ | 65.90 | (4)
2018 |  |  | 129,818 |  |  |  | 9,534,672 |  |  |  | 73.45 |  |  |  | 9,547,449 |  |  |  | 73.54 |  |  |  | 143,040 |  |  |  | 8,944,045 |  |  |  | 62.53 |  |  |  | 8,977,472 |  |  |  | 62.76 |
2019 |  |  | 430,549 |  |  |  | 26,087,750 |  |  |  | 60.59 |  |  |  | 26,390,486 |  |  |  | 61.29 |  |  |  | 389,041 |  |  |  | 23,219,682 |  |  |  | 59.68 |  |  |  | 23,983,433 |  |  |  | 61.65 |
2020 |  |  | 288,261 |  |  |  | 17,888,869 |  |  |  | 62.06 |  |  |  | 18,481,066 |  |  |  | 64.11 |  |  |  | 616,259 |  |  |  | 41,144,137 |  |  |  | 66.76 |  |  |  | 42,070,749 |  |  |  | 68.27 |
2021 |  |  | 428,476 |  |  |  | 25,041,687 |  |  |  | 58.44 |  |  |  | 25,276,454 |  |  |  | 58.99 |  |  |  | 679,168 |  |  |  | 42,668,020 |  |  |  | 62.82 |  |  |  | 47,201,340 |  |  |  | 69.50 |
2022 |  |  | 982,491 |  |  |  | 59,619,631 |  |  |  | 60.68 |  |  |  | 61,216,166 |  |  |  | 62.31 |  |  |  | 443,035 |  |  |  | 27,895,654 |  |  |  | 62.96 |  |  |  | 30,891,869 |  |  |  | 69.73 |
2023 |  |  | 443,068 |  |  |  | 29,249,219 |  |  |  | 66.02 |  |  |  | 33,626,154 |  |  |  | 75.89 |  |  |  | 375,992 |  |  |  | 25,496,819 |  |  |  | 67.81 |  |  |  | 29,140,574 |  |  |  | 77.50 |
2024 |  |  | 343,971 |  |  |  | 20,580,824 |  |  |  | 59.83 |  |  |  | 22,394,696 |  |  |  | 65.11 |  |  |  | 382,799 |  |  |  | 22,987,002 |  |  |  | 60.05 |  |  |  | 23,564,883 |  |  |  | 61.56 |
2025 |  |  | 686,806 |  |  |  | 45,327,780 |  |  |  | 66.00 |  |  |  | 50,973,676 |  |  |  | 74.22 |  |  |  | 331,402 |  |  |  | 19,447,040 |  |  |  | 58.68 |  |  |  | 22,845,373 |  |  |  | 68.94 |
2026 |  |  | 945,656 |  |  |  | 70,407,292 |  |  |  | 74.45 |  |  |  | 77,670,869 |  |  |  | 82.13 |  |  |  | 305,402 |  |  |  | 21,508,302 |  |  |  | 70.43 |  |  |  | 25,086,643 |  |  |  | 82.14 |
Thereafter |  |  | 3,214,969 |  |  |  | 178,727,298 |  |  |  | 55.59 |  |  |  | 212,086,171 |  |  |  | 65.97 |  |  |  | 962,882 |  |  |  | 63,943,338 |  |  |  | 66.41 |  |  |  | 86,075,114 |  |  |  | 89.39 |
|  | New York |  |  | Washington, DC |
|  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |  |  |  |  |  |  |  |  |  |  |  | Annualized |  |  |  |
|  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |  |  | Rentable Square |  |  | Current Annualized |  |  | Per |  |  | Rental Obligations Under |  |  | Per |
Year of Lease |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |  |  | Footage Subject to |  |  | Rental Obligations Under |  |  | Square |  |  | Expiring Leases |  |  | Square |
Expiration |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |  |  | Expiring Leases |  |  | Expiring Leases |  |  | Foot |  |  | with future step-ups |  |  | Foot |
2017 |  |  | 564,834 |  |  | $ | 57,111,288 |  |  | $ | 101.11 |  |  | $ | 57,111,288 |  |  | $ | 101.11 | (4) |  |  | 37,165 |  |  | $ | 2,184,185 |  |  | $ | 58.77 |  |  | $ | 2,187,271 |  |  | $ | 58.85 | (4)
2018 |  |  | 351,075 |  |  |  | 47,214,045 |  |  |  | 134.48 |  |  |  | 47,739,767 |  |  |  | 135.98 |  |  |  | 83,276 |  |  |  | 4,935,702 |  |  |  | 59.27 |  |  |  | 5,027,893 |  |  |  | 60.38 |
2019 |  |  | 349,132 |  |  |  | 35,111,738 |  |  |  | 100.57 |  |  |  | 35,241,671 |  |  |  | 100.94 |  |  |  | 466,480 |  |  |  | 30,184,767 |  |  |  | 64.71 |  |  |  | 31,132,458 |  |  |  | 66.74 |
2020 |  |  | 1,279,571 |  |  |  | 111,526,017 |  |  |  | 87.16 |  |  |  | 111,945,796 |  |  |  | 87.49 |  |  |  | 463,524 |  |  |  | 26,292,858 |  |  |  | 56.72 |  |  |  | 27,701,430 |  |  |  | 59.76 |
2021 |  |  | 311,243 |  |  |  | 43,766,447 |  |  |  | 140.62 |  |  |  | 45,122,053 |  |  |  | 144.97 |  |  |  | 592,007 |  |  |  | 39,630,036 |  |  |  | 66.94 |  |  |  | 43,215,888 |  |  |  | 73.00 |
2022 |  |  | 909,815 |  |  |  | 89,767,290 |  |  |  | 98.67 |  |  |  | 95,012,691 |  |  |  | 104.43 |  |  |  | 103,320 |  |  |  | 6,150,827 |  |  |  | 59.53 |  |  |  | 6,702,051 |  |  |  | 64.87 |
2023 |  |  | 91,631 |  |  |  | 10,526,230 |  |  |  | 114.88 |  |  |  | 11,736,080 |  |  |  | 128.08 |  |  |  | 48,609 |  |  |  | 3,075,172 |  |  |  | 63.26 |  |  |  | 3,651,470 |  |  |  | 75.12 |
2024 |  |  | 679,827 |  |  |  | 64,658,492 |  |  |  | 95.11 |  |  |  | 71,441,386 |  |  |  | 105.09 |  |  |  | 193,400 |  |  |  | 12,830,587 |  |  |  | 66.34 |  |  |  | 14,705,364 |  |  |  | 76.04 |
2025 |  |  | 296,170 |  |  |  | 31,400,301 |  |  |  | 106.02 |  |  |  | 34,368,806 |  |  |  | 116.04 |  |  |  | 86,404 |  |  |  | 4,589,103 |  |  |  | 53.11 |  |  |  | 5,497,562 |  |  |  | 63.63 |
2026 |  |  | 717,436 |  |  |  | 73,255,638 |  |  |  | 102.11 |  |  |  | 76,381,952 |  |  |  | 106.47 |  |  |  | 354,808 |  |  |  | 30,584,868 |  |  |  | 86.20 |  |  |  | 36,049,549 |  |  |  | 101.60 |
Thereafter |  |  | 2,696,035 |  |  |  | 276,919,127 |  |  |  | 102.71 |  |  |  | 401,143,700 |  |  |  | 148.79 |  |  |  | 1,501,610 |  |  |  | 98,381,768 |  |  |  | 65.52 |  |  |  | 127,485,288 |  |  |  | 84.90 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units and hotel.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires

(4) | Includes square feet expiring on the last day of the current quarter.

41

##### Table of Contents

SECOND QUARTER 2017

SUBURBAN PROPERTIES

Lease Expirations (1) (2) (3)

|  | Boston |  |  | San Francisco |
Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |  |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |
2017 |  |  | 86,372 |  |  | $ | 3,029,361 |  |  | $ | 35.07 |  |  | $ | 3,029,361 |  |  | $ | 35.07 | (4) |  |  | 152,166 |  |  | $ | 4,224,490 |  |  | $ | 27.76 |  |  | $ | 4,614,026 |  |  | $ | 30.32 | (4)
2018 |  |  | 263,062 |  |  |  | 9,312,716 |  |  |  | 35.40 |  |  |  | 9,464,670 |  |  |  | 35.98 |  |  |  | 69,816 |  |  |  | 2,661,729 |  |  |  | 38.12 |  |  |  | 2,714,907 |  |  |  | 38.89 |
2019 |  |  | 483,637 |  |  |  | 19,195,942 |  |  |  | 39.69 |  |  |  | 19,310,897 |  |  |  | 39.93 |  |  |  | 491,489 |  |  |  | 20,623,903 |  |  |  | 41.96 |  |  |  | 21,611,637 |  |  |  | 43.97 |
2020 |  |  | 272,460 |  |  |  | 10,193,772 |  |  |  | 37.41 |  |  |  | 11,362,049 |  |  |  | 41.70 |  |  |  | 96,499 |  |  |  | 4,297,312 |  |  |  | 44.53 |  |  |  | 4,629,830 |  |  |  | 47.98 |
2021 |  |  | 680,354 |  |  |  | 21,387,183 |  |  |  | 31.44 |  |  |  | 22,431,677 |  |  |  | 32.97 |  |  |  | 345,681 |  |  |  | 9,587,586 |  |  |  | 27.74 |  |  |  | 10,275,807 |  |  |  | 29.73 |
2022 |  |  | 739,028 |  |  |  | 27,699,286 |  |  |  | 37.48 |  |  |  | 28,118,758 |  |  |  | 38.05 |  |  |  | 420,505 |  |  |  | 19,097,106 |  |  |  | 45.41 |  |  |  | 22,150,266 |  |  |  | 52.68 |
2023 |  |  | 212,100 |  |  |  | 8,342,783 |  |  |  | 39.33 |  |  |  | 9,326,271 |  |  |  | 43.97 |  |  |  | 61,741 |  |  |  | 3,603,235 |  |  |  | 58.36 |  |  |  | 4,484,124 |  |  |  | 72.63 |
2024 |  |  | 370,361 |  |  |  | 15,116,722 |  |  |  | 40.82 |  |  |  | 16,579,290 |  |  |  | 44.77 |  |  |  | 24,512 |  |  |  | 984,647 |  |  |  | 40.17 |  |  |  | 1,210,992 |  |  |  | 49.40 |
2025 |  |  | 438,749 |  |  |  | 22,048,152 |  |  |  | 50.25 |  |  |  | 23,629,420 |  |  |  | 53.86 |  |  |  | 5,642 |  |  |  | 200,669 |  |  |  | 35.57 |  |  |  | 253,362 |  |  |  | 44.91 |
2026 |  |  | 132,589 |  |  |  | 4,712,012 |  |  |  | 35.54 |  |  |  | 5,425,138 |  |  |  | 40.92 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Thereafter |  |  | 671,787 |  |  |  | 26,571,393 |  |  |  | 39.55 |  |  |  | 29,430,846 |  |  |  | 43.81 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | New York |  |  | Washington, DC |
Year of Lease Expiration |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |  |  | Rentable Square Footage Subject to Expiring Leases |  |  | Current Annualized Rental Obligations Under Expiring Leases |  |  | Per Square Foot |  |  | Annualized Rental Obligations Under Expiring Leases with future step-ups |  |  | Per Square Foot |
2017 |  |  | 76,188 |  |  | $ | 2,835,098 |  |  | $ | 37.21 |  |  | $ | 2,835,098 |  |  | $ | 37.21 | (4) |  |  | 237,766 |  |  | $ | 10,731,008 |  |  | $ | 45.13 |  |  | $ | 10,737,302 |  |  | $ | 45.16 | (4)
2018 |  |  | 90,983 |  |  |  | 3,225,365 |  |  |  | 35.45 |  |  |  | 3,251,766 |  |  |  | 35.74 |  |  |  | 403,473 |  |  |  | 19,551,747 |  |  |  | 48.46 |  |  |  | 20,306,186 |  |  |  | 50.33 |
2019 |  |  | 175,322 |  |  |  | 6,409,383 |  |  |  | 36.56 |  |  |  | 6,498,636 |  |  |  | 37.07 |  |  |  | 702,941 |  |  |  | 28,393,803 |  |  |  | 40.39 |  |  |  | 28,875,987 |  |  |  | 41.08 |
2020 |  |  | 322,090 |  |  |  | 11,145,340 |  |  |  | 34.60 |  |  |  | 11,607,870 |  |  |  | 36.04 |  |  |  | 915,327 |  |  |  | 37,594,596 |  |  |  | 41.07 |  |  |  | 38,984,034 |  |  |  | 42.59 |
2021 |  |  | 129,889 |  |  |  | 4,122,516 |  |  |  | 31.74 |  |  |  | 4,247,539 |  |  |  | 32.70 |  |  |  | 749,465 |  |  |  | 34,320,056 |  |  |  | 45.79 |  |  |  | 37,192,545 |  |  |  | 49.63 |
2022 |  |  | 82,247 |  |  |  | 2,813,349 |  |  |  | 34.21 |  |  |  | 3,034,502 |  |  |  | 36.89 |  |  |  | 746,044 |  |  |  | 32,625,488 |  |  |  | 43.73 |  |  |  | 36,345,576 |  |  |  | 48.72 |
2023 |  |  | 44,145 |  |  |  | 1,452,098 |  |  |  | 32.89 |  |  |  | 1,436,010 |  |  |  | 32.53 |  |  |  | 482,947 |  |  |  | 23,338,013 |  |  |  | 48.32 |  |  |  | 26,557,103 |  |  |  | 54.99 |
2024 |  |  | 391,546 |  |  |  | 13,596,211 |  |  |  | 34.72 |  |  |  | 14,390,887 |  |  |  | 36.75 |  |  |  | 468,766 |  |  |  | 21,903,047 |  |  |  | 46.72 |  |  |  | 24,680,230 |  |  |  | 52.65 |
2025 |  |  | 269,850 |  |  |  | 9,651,912 |  |  |  | 35.77 |  |  |  | 10,984,045 |  |  |  | 40.70 |  |  |  | 459,843 |  |  |  | 18,968,636 |  |  |  | 41.25 |  |  |  | 22,252,149 |  |  |  | 48.39 |
2026 |  |  | 165,045 |  |  |  | 5,331,401 |  |  |  | 32.30 |  |  |  | 6,079,238 |  |  |  | 36.83 |  |  |  | 85,508 |  |  |  | 4,321,382 |  |  |  | 50.54 |  |  |  | 5,184,786 |  |  |  | 60.64 |
Thereafter |  |  | 254,305 |  |  |  | 9,656,707 |  |  |  | 37.97 |  |  |  | 10,156,878 |  |  |  | 39.94 |  |  |  | 322,387 |  |  |  | 13,468,463 |  |  |  | 41.78 |  |  |  | 17,225,644 |  |  |  | 53.43 |

(1) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(2) | Includes 100% of joint venture properties. Does not include residential units and hotel.

(3) | Does not include data for leases expiring in a particular year when leases for the same space have already been signed with replacement tenants with future commencement dates. In those cases, the data is included in the year in which the future lease expires.

(4) | Includes square feet expiring on the last day of the current quarter.

42

##### Table of Contents

SECOND QUARTER 2017

LEASING ACTIVITY

for the three months ended June 30, 2017

All In-Service Properties

|  | Total |
Vacant space available @ 4/1/2017 (sf) |  |  | 4,110,657 |
Property dispositions/ properties taken out of service (sf) |  |  | (115,289 | )
Properties acquired vacant space (sf) |  |  | 15,944 |
Properties placed in-service (sf) (1) |  |  | 73,258 |
Leases expiring or terminated 4/1/2017-6/30/2017 (sf) |  |  | 1,261,949 |
Total space available for lease (sf) |  |  | 5,346,519 |
1st generation leases (sf) |  |  | 53,588 |
2nd generation leases with new tenants (sf) |  |  | 816,044 |
2nd generation lease renewals (sf) |  |  | 524,556 |
Total space leased (sf) |  |  | 1,394,188 |
Vacant space available for lease @ 6/30/2017 (sf) |  |  | 3,952,331 |
Net (increase)/decrease in available space (sf) |  |  | 158,326 |
Second generation leasing information: (2) |  |  |  |
Leases commencing during the period (sf) |  |  | 1,340,600 |
Weighted average lease term (months) |  |  | 103 |
Weighted average free rent period (days) |  |  | 139 |
Total transaction costs per square foot (3) |  | $ | 63.96 |
Increase (decrease) in gross rents (4) |  |  | 17.69 | %
Increase (decrease) in net rents (5) |  |  | 28.37 | %

|  | All leases 1st Generation (sf) |  |  | All leases 2nd Generation (sf) |  |  | Incr (decr) in 2nd gen. gross cash rents (4) |  |  | Incr (decr) in 2nd gen. net cash rents (5) |  |  | Total Leased (sf) (6) |  |  | Total square feet of leases executed in the quarter (7) |
Boston |  |  | 18,950 |  |  |  | 541,163 |  |  |  | 17.52 | % |  |  | 30.41 | % |  |  | 560,113 |  |  |  | 234,750 |
New York |  |  | — |  |  |  | 319,654 |  |  |  | 13.82 | % |  |  | 22.50 | % |  |  | 319,654 |  |  |  | 77,720 |
San Francisco and Los Angeles |  |  | — |  |  |  | 254,263 |  |  |  | 39.64 | % |  |  | 60.93 | % |  |  | 254,263 |  |  |  | 407,112 |
Washington, DC |  |  | 34,638 |  |  |  | 225,520 |  |  |  | (3.78 | %) |  |  | (5.22 | %) |  |  | 260,158 |  |  |  | 207,675 |
Total / Weighted Average |  |  | 53,588 |  |  |  | 1,340,600 |  |  |  | 17.69 | % |  |  | 28.37 | % |  |  | 1,394,188 |  |  |  | 927,257 |

(1) | Total square feet of properties placed in service in Q2 2017 consist of 73,258 square feet at Reservoir Place North.

(2) | Second generation leases are defined as leases for space that had previously been leased by the Company. Of the 1,340,600 square feet of second generation leases that commenced in Q2 2017, leases for 1,070,719 square feet were signed in prior periods.

(3) | Total transaction costs include tenant improvements and leasing commissions and exclude free rent concessions.

(4) | Represents the increase/(decrease) in gross rent (base rent plus expense reimbursements) on the new vs. expired leases on the 1,026,480 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

(5) | Represents the increase/(decrease) in net rent (gross rent less operating expenses) on the new vs. expired leases on the 1,026,480 square feet of second generation leases that had been occupied within the prior 12 months; excludes leases that management considers temporary because the tenant is not expected to occupy the space on a long-term basis (e.g., the tenant is occupying “swing space”).

(6) | Represents leases for which rental revenue recognition has commenced in accordance with GAAP during the quarter.

(7) | Represents leases executed in the quarter for which the Company either (1) commenced rental revenue recognition in such quarter or (2) will commence rental revenue recognition in subsequent quarters, in accordance with GAAP, and includes leases at properties currently under development. The total square feet of leases executed in the current quarter for which the Company recognized rental revenue in the current quarter is 269,881.

43

##### Table of Contents

SECOND QUARTER 2017

ACQUISITIONS/DISPOSITIONS

as of June 30, 2017

ACQUISITIONS

For the period from January 1, 2017 through June 30, 2017

Property |  | Location |  |  | Date Acquired |  |  | Square Feet |  |  | Initial Investment |  |  | Anticipated Future Investment |  |  | Total Investment |  |  | Percentage Leased |
103 Carnegie Center |  |  | Princeton, NJ |  |  |  | May 15, 2017 |  |  |  | 96,332 |  |  | $ | 15,760,000 |  |  | $ | 2,000,000 |  |  | $ | 17,760,000 |  |  |  | 83 | %
Total Acquisitions |  |  |  |  |  |  |  |  |  |  | 96,332 |  |  | $ | 15,760,000 |  |  | $ | 2,000,000 |  |  | $ | 17,760,000 |  |  |  | 83 | %

DISPOSITIONS

For the period from January 1, 2017 through June 30, 2017

Property |  | Location |  |  | Date Disposed |  |  | Square Feet |  |  | Gross Sales Price |  |  | Net Cash Proceeds |  |  | Book Gain |
30 Shattuck Road (land parcel) |  |  | Andover, MA |  |  |  | April 19, 2017 |  |  |  | N/A |  |  | $ | 5,000,000 |  |  | $ | 4,977,000 |  |  | $ | 3,739,000 |
40 Shattuck Road |  |  | Andover, MA |  |  |  | June 13, 2017 |  |  |  | 121,542 |  |  |  | 12,000,000 |  |  |  | 11,939,000 |  |  |  | 28,000 |
Total Dispositions of Real Estate |  |  |  |  |  |  |  |  |  |  | 121,542 |  |  | $ | 17,000,000 |  |  | $ | 16,916,000 |  |  | $ | 3,767,000 |

44

##### Table of Contents

SECOND QUARTER 2017

VALUE CREATION PIPELINE - CONSTRUCTION IN PROGRESS (1)

as of June 30, 2017

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | BXP’s Share |  |  |  |  |  |  |
Construction Properties |  | Actual / Estimated Initial Occupancy |  |  | Actual / Estimated Stabilization Date |  |  | Location |  |  | # of Buildings |  |  | Square feet |  |  | Investment to Date (2) |  |  | Estimated Total Investment (2) |  |  | Total Financing |  |  | Amount Drawn at June 30, 2017 |  |  | Estimated Future Equity Requirement (2) |  |  | Percentage Leased (3) |  |  | Percentage Placed in service (4) |
Office and Retail |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
888 Boylston Street |  |  | Q3 2016 |  |  |  | Q4 2017 |  |  |  | Boston, MA |  |  |  | 1 |  |  |  | 425,000 |  |  | $ | 242,515,880 |  |  | $ | 271,500,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 28,984,120 |  |  |  | 88 | % |  |  | 31 | %
Salesforce Tower (95% ownership) |  |  | Q1 2018 |  |  |  | Q3 2019 |  |  |  | San Francisco, CA |  |  |  | 1 |  |  |  | 1,400,000 |  |  |  | 880,355,295 |  |  |  | 1,073,500,000 |  |  |  | (25,389,074 | ) (5) |  |  | (16,020,092 | ) (5) |  |  | 202,513,687 |  |  |  | 82 | % |  |  | — |
The Hub on Causeway (50% ownership) |  |  | Q1 2019 |  |  |  | Q4 2019 |  |  |  | Boston, MA |  |  |  | 1 |  |  |  | 385,000 |  |  |  | 38,845,919 |  |  |  | 141,870,000 |  |  |  | — |  |  |  | — |  |  |  | 103,024,081 |  |  |  | 42 | % |  |  | — |
145 Broadway |  |  | Q4 2019 |  |  |  | Q4 2019 |  |  |  | Cambridge, MA |  |  |  | 1 |  |  |  | 485,000 |  |  |  | 27,325,275 |  |  |  | 375,000,000 |  |  |  | — |  |  |  | — |  |  |  | 347,674,725 |  |  |  | 98 | % |  |  |  |
Dock 72 (50% ownership) |  |  | Q3 2018 |  |  |  | Q1 2020 |  |  |  | Brooklyn, NY |  |  |  | 1 |  |  |  | 670,000 |  |  |  | 57,458,109 |  |  |  | 204,900,000 |  |  |  | 125,000,000 |  |  |  | — |  |  |  | 22,441,891 |  |  |  | 33 | % |  |  | — |
Total Office Properties under Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 5 |  |  |  | 3,365,000 |  |  | $ | 1,246,500,478 |  |  | $ | 2,066,770,000 |  |  | $ | 99,610,926 |  |  | $ | (16,020,092 | ) |  | $ | 704,638,504 |  |  |  | 71 | % |  |  | 6 | %
Residential |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Proto at Cambridge (274 units) |  |  | Q2 2018 |  |  |  | Q2 2019 |  |  |  | Cambridge, MA |  |  |  | 1 |  |  |  | 164,000 |  |  | $ | 45,812,467 |  |  | $ | 140,170,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 94,357,533 |  |  |  | N/A |  |  |  | — |
Signature at Reston (508 units) |  |  | Q1 2018 |  |  |  | Q2 2020 |  |  |  | Reston, VA |  |  |  | 1 |  |  |  | 490,000 |  |  |  | 144,982,071 | (6) |  |  | 234,854,000 | (6) |  |  | — |  |  |  | — |  |  |  | 89,871,929 |  |  |  | N/A |  |  |  | — |
Signature at Reston—Retail |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |  |  |  | 24,600 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 81 | % |  |  | — |
MacArthur Station Residences (402 units) (7) |  |  | Q2 2020 |  |  |  | Q4 2021 |  |  |  | Oakland, CA |  |  |  | 1 |  |  |  | 324,000 |  |  |  | 1,841,497 |  |  |  | 263,600,000 |  |  |  | — |  |  |  | — |  |  |  | 261,758,503 |  |  |  | N/A |  |  |  | — |
Total Residential Properties under Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 3 |  |  |  | 1,002,600 |  |  | $ | 192,636,035 |  |  | $ | 638,624,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 445,987,965 |  |  |  | 59 | % (8) |  |  | — |
Redevelopment Properties |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
191 Spring Street |  |  | Q4 2017 |  |  |  | Q4 2018 |  |  |  | Lexington, MA |  |  |  | 1 |  |  |  | 160,000 |  |  | $ | 14,865,547 |  |  | $ | 53,920,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 39,054,453 |  |  |  | 49 | % |  |  | — |
One Five Nine East 53rd (55% ownership) (9) |  |  | Q4 2018 |  |  |  | Q4 2019 |  |  |  | New York, NY |  |  |  | — |  |  |  | 220,000 |  |  |  | 38,677,085 |  |  |  | 106,000,000 |  |  |  | — |  |  |  | — |  |  |  | 67,322,915 |  |  |  | — |  |  |  | — |
Total Redevelopment Properties under Construction |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  | 380,000 |  |  | $ | 53,542,632 |  |  | $ | 159,920,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 106,377,368 |  |  |  | 21 | % |  |  | — |
Total Properties Under Construction and Redevelopment |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 9 |  |  |  | 4,747,600 |  |  | $ | 1,492,679,145 |  |  | $ | 2,865,314,000 |  |  | $ | 99,610,926 |  |  | $ | (16,020,092 | ) |  | $ | 1,257,003,837 |  |  |  | 66 | % (8) |  |  | 5 | %

PROJECTS FULLY PLACED IN-SERVICE DURING 2017

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | BXP’s Share |
|  | Actual / Estimated Initial Occupancy |  |  | Actual / Estimated Stabilization Date |  |  | Location |  |  | # of Buildings |  |  | Square feet |  |  | Investment to Date (2) |  |  | Estimated Total Investment (2) |  |  | Total Financing |  |  | Amount Drawn at June 30, 2017 |  |  | Estimated Future Equity Requirement (2) |  |  | Percentage Leased (3) |
Prudential Center Retail Expansion |  |  | Q1 2016 |  |  |  | Q3 2017 |  |  |  | Boston, MA |  |  |  | — |  |  |  | 15,000 |  |  | $ | 9,589,169 |  |  | $ | 10,760,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,170,831 |  |  |  | 100 | %
Reservoir Place North |  |  | Q1 2018 |  |  |  | Q1 2018 |  |  |  | Waltham, MA |  |  |  | 1 |  |  |  | 73,000 |  |  |  | 16,139,546 |  |  |  | 24,510,000 |  |  |  | — |  |  |  | — |  |  |  | 8,370,454 |  |  |  | — |
Total Projects placed In-Service |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1 |  |  |  | 88,000 |  |  | $ | 25,728,715 |  |  | $ | 35,270,000 |  |  | $ | — |  |  | $ | — |  |  | $ | 9,541,285 |  |  |  | 17 | %

IN-SERVICE PROPERTIES HELD FOR REDEVELOPMENT

|  | Sub Market |  |  | # of Buildings |  |  | Existing Square Feet |  |  | Leased % |  |  | Annualized Rental Obligations Per Leased SF (10) |  |  | Encumbered with secured debt (Y/N) |  |  | Central Business District (CBD) or Suburban (S) |  |  | Incremental Estimated Future SF (11) |
North First Business Park |  |  | San Jose CA |  |  |  | 5 |  |  |  | 190,636 |  |  |  | 87.2 | % |  | $ | 23.03 |  |  |  | N |  |  |  | S |  |  |  | 1,359,364 |
3625-3635 Peterson Way |  |  | Santa Clara CA |  |  |  | 1 |  |  |  | 218,366 |  |  |  | 100.0 | % |  |  | 22.22 |  |  |  | N |  |  |  | S |  |  |  | 413,690 |
Total Properties held for Redevelopment |  |  |  |  |  |  | 6 |  |  |  | 409,002 |  |  |  | 94.0 | % |  | $ | 22.57 |  |  |  |  |  |  |  |  |  |  |  | 1,773,054 |

(1) | A project is classified as Construction in Progress when construction or supply contracts have been signed, physical improvements have commenced or a lease has been signed and capitalized interest has commenced.

(2) | Includes income (loss) and interest carry on debt and equity investment.

(3) | Represents percentage leased as of July 28, 2017, including leases with future commencement dates and excluding residential units.

(4) | Represents the portion of the project that no longer qualifies for capitalization of interest in accordance with GAAP.

(5) | Under the joint venture agreement, if the project is funded with 100% equity, the Company has agreed to fund 50% of its partner’s equity requirement, structured as preferred equity. The Company will fund approximately $25.4 million at a rate of LIBOR plus 3.0% per annum and receive priority distributions from all distributions to its partner until the principal and interest are repaid. As of June 30, 2017, the Company has funded $16,020,092.

(6) | Includes approximately $17 million for overbuilding parking structure to support future development requirements and excludes $10 million of the purchase price for the site that is allocated to rights for future development in Reston Town Center.

(7) | Project is subject to a 90 year ground lease (including extension options) with an option to purchase in the future.

(8) | Includes approximately 9,000 square feet of retail space at the Proto at Cambridge residential development, which is 0% leased.

(9) | The low-rise portion of 601 Lexington Avenue.

(10) | For disclosures relating to the Company’s definition of Annualized Rental Obligations, see page 47.

(11) | Incremental Future Square Footage is included in Approximate Developable Square Feet of Value Creation Pipeline - Owned Land Parcels and Land Purchase Options on page 46.

45

##### Table of Contents

SECOND QUARTER 2017

VALUE CREATION PIPELINE

as of June 30, 2017

Owned Land Parcels

Location |  | Approximate Developable Square Feet |
San Jose, CA (1) |  |  | 2,199,000 |
Reston, VA |  |  | 1,160,000 |
Waltham, MA |  |  | 805,000 |
Springfield, VA |  |  | 800,000 |
Rockville, MD |  |  | 759,000 |
Washington, DC (50% ownership) |  |  | 520,000 |
Santa Clara, CA (1) |  |  | 414,000 |
Marlborough, MA |  |  | 400,000 |
Boston, MA (50% Ownership) |  |  | 320,000 |
Dulles, VA |  |  | 310,000 |
Annapolis, MD (50% ownership) |  |  | 300,000 |
Gaithersburg, MD |  |  | 240,000 |
|  |  | 8,227,000 |

Land Purchase Options

Location |  | Approximate Developable Square Feet |
Princeton, NJ |  |  | 1,650,000 |
Boston, MA |  |  | 1,300,000 |
Cambridge, MA |  |  | 623,000 |
Brooklyn, NY (50% ownership) |  |  | 600,000 |
Boston, MA (50% ownership) |  |  | 525,000 |
Washington, DC |  |  | 482,000 |
San Francisco, CA |  |  | TBD |
|  |  | 5,180,000 |

(1) | Excludes the existing square footage related to in-service properties being held for future re-development included on page 45.

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##### Table of Contents

SECOND QUARTER 2017

DEFINITIONS

This section contains definitions of certain non-GAAP financial measures and other terms that the Company uses in this supplemental report and, where applicable, the reasons why management believes these non-GAAP financial measures provide useful information to investors about the Company’s financial condition and results of operations and the other purposes for which management uses the measures. Additional detail can be found in the Company’s most recent annual report on Form 10-K and quarterly report on Form 10-Q, as well as other documents filed with or furnished to the SEC from time to time.

The Company also presents “BXP’s Share” of certain of these measures which is defined as the consolidated amount, plus the Company’s share of the amount from its unconsolidated joint ventures (calculated based upon the Company’s percentage ownership interest), minus the Company’s partners’ share of the amount from its consolidated joint ventures (calculated based upon the partners’ percentage ownership interests). Management believes that presenting “BXP’s Share” of these measures provides useful information to investors regarding the Company’s financial condition and/or results of operations because it includes the Company’s share of the applicable amount from unconsolidated joint ventures and excludes the Company’s partners’ share from consolidated joint ventures. The Company has several significant joint ventures and presenting various financial measures in this manner can help investors better understand the Company’s financial condition and/or results of operations after taking into account its economic interest in these joint ventures. The Company cautions investors that the ownership percentages used in calculating “BXP’s Share” of these measures may not completely and accurately depict all of the legal and economic implications of holding an interest in a consolidated or unconsolidated joint venture. For example, in addition to partners’ interests in profits and capital, venture agreements vary in the allocation of rights regarding decision making (both routine and major decisions), distributions, transferability of interests, liquidations and other matters. Moreover, in some cases, the Company exercises significant influence over, but does not control, the joint venture, in which case GAAP requires that the Company account for the joint venture entity using the equity method of accounting and the Company does not consolidate it for financial reporting purposes. As a result, presentations of BXP’s Share of a financial measure should not be considered a substitute for, and should only be considered together with and as a supplement to, the Company’s financial information presented in accordance with GAAP.

Annualized Rental Obligations

Annualized Rental Obligations is defined as monthly Rental Obligations, as of the last day of the reporting period, multiplied by twelve (12).

Average Economic Occupancy

Average Economic Occupancy is defined as total possible revenue less vacancy loss as a percentage of total possible revenue. Total possible revenue is determined by valuing average occupied units at contract rates and average vacant units at Market Rents. Vacancy loss is determined by valuing vacant units at current Market Rents. By measuring vacant units at their Market Rents, Average Economic Occupancy takes into account the fact that units of different sizes and locations within a residential property have different economic impacts on a residential property’s total possible gross revenue.

Average Monthly Rental Rates

Average Rental Rates are calculated by the Company as rental revenue in accordance with GAAP, divided by the weighted monthly average number of occupied units.

Average Physical Occupancy

Average Physical Occupancy is defined as the average number of occupied units divided by the total number of units, expressed as a percentage.

Debt to Market Capitalization Ratio

Consolidated Debt to Consolidated Market Capitalization Ratio is defined as consolidated debt as a percentage of the market value of the Company’s outstanding equity securities plus the Company’s consolidated debt, and it is a measure of leverage commonly used by analysts in the REIT sector. Consolidated Market Capitalization is the sum of (A) the Company’s consolidated debt plus (B) the market value of the Company’s outstanding equity securities calculated using the closing price per share of common stock of the Company, as reported by the New York Stock Exchange, multiplied by the sum of (1) outstanding shares of common stock of the Company, (2) outstanding common units of limited partnership interest in Boston Properties Limited Partnership (excluding common units held by the Company), (3) common units issuable upon conversion of all outstanding LTIP Units, assuming all conditions have been met for the conversion of the LTIP Units, (4) on and after February 6, 2015, which was the end of the performance period for 2012 OPP Units and thus the date earned, common units issuable upon conversion of 2012 OPP Units that were issued in the form of LTIP Units, (5) on and after February 4, 2016, which was the end of the performance period for 2013 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2013 MYLTIP Units that were issued in the form of LTIP Units and (6) on and after February 3, 2017, which was the end of the performance period for 2014 MYLTIP Units and thus the date earned, common units issuable upon conversion of 2014 MYLTIP Units that were issued in the form of LTIP Units plus (C) outstanding shares of 5.25% Series B Cumulative Redeemable Preferred Stock multiplied by their fixed liquidation preference of $2,500 per share. The calculation of Consolidated Market Capitalization does not include LTIP Units issued in the form of MYLTIP Awards unless and until certain performance thresholds are achieved and they are earned. Because their three-year performance periods have not yet ended, 2015, 2016 and 2017 MYLTIP Units are not included. The Company also presents BXP’s Share of Market Capitalization, which is calculated in a similar manner, except that BXP’s Share of Debt is utilized instead of the Company’s consolidated debt in both the numerator and the denominator. The Company presents these ratios because its degree of leverage could affect its ability to obtain additional financing for working capital, capital expenditures, acquisitions, development or other general corporate purposes and because different investors and lenders consider one or both of these ratios. Investors should understand that these ratios are, in part, a function of the market price of the common stock of the Company, and as such will fluctuate with changes in such price and does not necessarily reflect the Company’s capacity to incur additional debt to finance its activities or its ability to manage its existing debt obligations. However, for a company like Boston Properties, Inc., whose assets are primarily income-producing real estate, these ratios may provide investors with an alternate indication of leverage, so long as they are evaluated along with the ratio of indebtedness to other measures of asset value used by financial analysts and other financial ratios, as well as the various components of the Company’s outstanding indebtedness.

Funds Available for Distribution (FAD) and FAD Payout Ratio

In addition to FFO, the Company presents Funds Available for Distribution to common shareholders and common unitholders (FAD), which is a non-GAAP financial measure that is calculated by (1) adding to FFO lease transaction costs that qualify as rent inducements, non-real estate depreciation, non-cash losses (gains) from early extinguishments of debt, stock-based compensation expense, partners’ share of consolidated and unconsolidated joint venture 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences) and unearned portion of capitalized fees, (2) eliminating the effects of straight-line rent, straight-line ground rent expense adjustment, fair value interest adjustment and fair value lease revenue, and (3) subtracting maintenance capital expenditures, hotel improvements, equipment upgrades and replacements, 2nd generation tenant improvement and leasing commissions (included in the period in which the lease commences), non-cash termination income adjustment (fair value lease amounts) and impairments of non-depreciable real estate. The Company believes that the presentation of FAD provides useful information to investors regarding the Company’s results of operations because FAD provides supplemental information regarding the Company’s operating performance that would not otherwise be available and may be useful to investors in assessing the Company’s operating performance. Additionally, although the Company does not consider FAD to be a liquidity measure, as it does not make adjustments to reflect changes in working capital or the actual timing of the payment of income or expense items that are accrued in the period, the Company believes that FAD may provide investors with useful supplemental information regarding the Company’s ability to generate cash from its operating performance and the impact of the Company’s operating performance on its ability to make distributions to its shareholders. Furthermore, the Company believes that FAD is frequently used by analysts, investors and other interested parties in the evaluation of its performance as a REIT and, as a result, by presenting FAD the Company is assisting these parties in their evaluation. FAD should not be considered as a substitute for net income (loss) attributable to Boston Properties, Inc.’s common shareholders determined in accordance with GAAP or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

FAD Payout Ratio is defined as distributions to common shareholders and unitholders (excluding any special distributions) divided by FAD.

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##### Table of Contents

SECOND QUARTER 2017

DEFINITIONS (continued)

Funds from Operations (FFO)

Pursuant to the revised definition of Funds from Operations adopted by the Board of Governors of the National Association of Real Estate Investment Trusts (“NAREIT”), the Company calculates Funds from Operations, or “FFO,” by adjusting net income (loss) attributable to Boston Properties, Inc. common shareholders (computed in accordance with GAAP) for gains (or losses) from sales of properties, impairment losses on depreciable real estate consolidated on the Company’s balance sheet, impairment losses on its investments in unconsolidated joint ventures driven by a measurable decrease in the fair value of depreciable real estate held by the unconsolidated joint ventures, real estate-related depreciation and amortization, and the Company’s share of income (loss) from unconsolidated partnerships and joint ventures. FFO is a non-GAAP financial measure, but the Company believes the presentation of FFO, combined with the presentation of required GAAP financial measures, has improved the understanding of operating results of REITs among the investing public and has helped make comparisons of REIT operating results more meaningful. Management generally considers FFO and FFO per share to be useful measures for understanding and comparing the Company’s operating results because, by excluding gains and losses related to sales of previously depreciated operating real estate assets, impairment losses and real estate asset depreciation and amortization (which can differ across owners of similar assets in similar condition based on historical cost accounting and useful life estimates), FFO and FFO per share can help investors compare the operating performance of a company’s real estate across reporting periods and to the operating performance of other companies.

The Company’s computation of FFO may not be comparable to FFO reported by other REITs or real estate companies that do not define the term in accordance with the current NAREIT definition or that interpret the current NAREIT definition differently. In order to facilitate a clear understanding of the Company’s operating results, FFO should be examined in conjunction with net income attributable to Boston Properties, Inc. common shareholders as presented in the Company’s consolidated financial statements. FFO should not be considered as a substitute for net income attributable to Boston Properties, Inc. common shareholders (determined in accordance with GAAP) or any other GAAP financial measures and should only be considered together with and as a supplement to the Company’s financial information prepared in accordance with GAAP.

In-Service Properties

The Company treats a property as being “in-service” upon the earlier of (1) lease-up and completion of tenant improvements or (2) one year after cessation of major construction activity as determined under GAAP. The determination as to when an entire property should be treated as “in-service” involves a degree of judgment and is made by management based on the relevant facts and circumstances of the particular property. For portfolio operating and occupancy statistics, the Company specifies a single date for treating a property as “in-service,” which is generally later than the date the property is partially placed in-service under GAAP. Under GAAP, a property may be placed in-service in stages as construction is completed and the property is held available for occupancy. In accordance with GAAP, when a portion of a property has been substantially completed and either occupied or held available for occupancy, the Company ceases capitalizing costs on that portion, even though it may not treat the property as being “in-service,” and continues to capitalize only those costs associated with the portion still under construction. In-service properties include properties held by the Company’s unconsolidated joint ventures.

Market Rents

Market Rents used by the Company in calculating Average Economic Occupancy are based on the current market rates set by the managers of the Company’s residential properties based on their experience in renting their residential property’s units and publicly available market data. Trends in market rents for a region as reported by others could vary. Market Rents for a period are based on the average Market Rents during that period and do not reflect any impact for cash concessions.

Net Operating Income (NOI)

Net operating income (NOI) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders, the most directly comparable GAAP financial measure, plus (1) preferred dividends, net income attributable to noncontrolling interests, corporate general and administrative expense, transaction costs, depreciation and amortization and interest expense, less (2) gains on sales of real estate, development and management services income, income from unconsolidated joint ventures, interest and other income, gains from investments in securities and gains from early extinguishments of debt. In some cases the Company also presents (1) NOI – cash, which is NOI after eliminating the effects of straight-lining of rent, fair value lease revenue, ground rent expense and lease transaction costs that qualify as rent inducements in accordance with GAAP, and (2) NOI and NOI – cash, in each case excluding termination income.

The Company uses these measures internally as performance measures and believes they provide useful information to investors regarding the Company’s results of operations and financial condition because, when compared across periods, they reflect the impact on operations from trends in occupancy rates, rental rates, operating costs and acquisition and development activity on an unleveraged basis, providing perspective not immediately apparent from net income. For example, interest expense is not necessarily linked to the operating performance of a real estate asset and is often incurred at the corporate level as opposed to the property level. Similarly, interest expense may be incurred at the property level even though the financing proceeds may be used at the corporate level (e.g., used for other investment activity). In addition, depreciation and amortization, because of historical cost accounting and useful life estimates, may distort operating performance measures at the property level. Presenting NOI – cash allows investors to compare NOI performance across periods without taking into account the effect of certain non-cash rental revenues and ground rent expenses. Similar to depreciation and amortization, fair value lease revenues, because of historical cost accounting, may distort operating performance measures at the property level. Additionally, presenting NOI excluding the impact of the straight-lining of rent provides investors with an alternative view of operating performance at the property level that more closely reflects net cash generated at the property level on an unleveraged basis. Presenting NOI measures that exclude termination income provides investors with additional information regarding operating performance at a property level that allows them to compare operating performance between periods without taking into account termination income, which can distort the results for any given period because they generally represent multiple months or years of a tenant’s rental obligations that are paid in a lump sum in connection with a negotiated early termination of the tenant’s lease and are not reflective of the core ongoing operating performance of the Company’s properties.

Rental Obligations

Rental Obligations is defined as the contractual base rents (but excluding percentage rent) and budgeted reimbursements from tenants under existing leases. These amounts exclude rent abatements.

Same Properties

In the Company’s analysis of NOI, particularly to make comparisons of NOI between periods meaningful, it is important to provide information for properties that were in-service and owned by the Company throughout each period presented. The Company refers to properties acquired or placed in-service prior to the beginning of the earliest period presented and owned by the Company through the end of the latest period presented as “Same Properties.” “Same Properties” therefore exclude properties placed in-service, acquired, repositioned or in development or redevelopment after the beginning of the earliest period presented or disposed of prior to the end of the latest period presented. Accordingly, it takes at least one year and one quarter after a property is acquired or treated as “in-service” for that property to be included in “Same Properties.” Pages 27-29 indicate by footnote the “In-Service Properties” that are not included in “Same Properties.”

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