My team and I did an in-depth overview of Boston Properties' competitive position in the REIT industry as well as suggested strategies to help improve their performance.

1. Boston Properties
Blake, Hanna, Maryellen, & Randell

2. Description of Company
● 760 Employees
● 197 properties
● Operate throughout Boston, Los Angeles, San
Francisco, New York, and Washington D.C.
● Classified as a REIT company
○ Real Estate Investment Trust
■ “own/operate income-producing real estate”
● Specifically developing, redeveloping, managing,
and acquiring properties for office use
Owen Thomas Douglas Linde
CEO President

3. History of Company
● Boston Properties was founded in 1970 by Mortimer B. Zuckerman and
Edward H. Linde in Boston MA
○ They were both previously employed by Cabot, Cabot & Forbes which is a Boston Based
development company
● Boston Properties became publicly traded in 1997 and has been on the New
York Stock Exchange ever since

4. Boston Properties Org Chart
Bryan J. Koop
EVP, Boston Region
Douglas T. Linde
President
Raymond A. Ritchey
Senior Executive Vice
President
Peter D. Johnston
Executive Vice President,
Washington DC Region
John F. Powers
EVP, New York Region
Michael E. Labelle
EVP & CFO
Michael R. Walsh
Senior Vice President,
Chief Accounting Officer
Frank D. Burt
SVP, General Counsel &
Secretary
Robert E. Prester
EVP, San Francisco
Region
Owen D. Thomas
CEO

5. Competitors
● Beacon Capital Partners
● Bresler and Reiner
● Brookfield Office Property
● Trump
● SL Green Realty Corp.
● Hines

6. Vision Statement
“Our primary business objective is to maximize the return on investment in an
effort to provide our stockholders with the greatest possible total return.”
This is Boston Properties existing Vision statement
● It provides a clear objective for the company but it lacks some specifics.

7. Revised Vision Statement
Our goal is to maximize the return on investment to provide our stockholders
with the greatest possible return through providing an industry leading property
service.
● The old one was too generic because it did not provide a specific industry

8. Mission Statement
Boston Properties has no traditional mission statement
They instead have a set of strategies that lay out the following goals:
● Concentrate on a Few Carefully Selected Geographic Markets
● Concentrate Activities Where High Barriers to Entry Exist.
● Leverage the Skills of our Management Team
● Become the Landlord of Choice.
● Opportunistically Acquire Assets
● Explore Joint-Venture Opportunities
● Demonstrate Value Creation
● Offer Fee Development Services.
● Enhance our Capital Structure
Using these goals and strategies to achieve them we were able to construct a traditional mission statement

9. Revised Mission Statement
We exist to serve businesses and individuals with comfortable,
secure and productive locations in which to strive (1,2). We
currently exist in Boston, Los Angeles, New York, San Francisco
and Washington D.C. areas and strive to expand (3,5). We at
Boston Properties are focused on providing everyone with the
most convenient technologies with which to conduct business
with us (4). This allows us to explore joint-ventures into new
markets with other companies more easily as well as continuing to
serve our established markets in the most productive way (5). Our
goal is to create value to everyone we come into contact with both
internally and externally (6). We believe that our continued
investment in our management staff allows us to be viewed as a
premier landlord service as well as invest in our own employees
and their futures(6,7,8,9).
Components
1. Customers
2. Product or
services
3. Markets
4. Technology
5. Concern for
survival
6. Philosophy
7. Self-concept
8. Public image
9. Employees

10. Company Objectives
The goals laid out by Boston Properties are as follows:
● Concentrate on a Few Carefully Selected Geographic Markets
● Concentrate Activities Where High Barriers to Entry Exist.
● Leverage the Skills of our Management Team
● Become the Landlord of Choice.
● Opportunistically Acquire Assets
● Explore Joint-Venture Opportunities
● Demonstrate Value Creation
● Offer Fee Development Services.
● Enhance our Capital Structure

11. Company Strategies
Concentrate on a Few Carefully Selected Geographic Markets
Our markets include Boston, New York, San Francisco and Washington, DC, where we are one of the leading, if not the leading, owners and developers in each
of those markets. We select markets and submarkets where tenants have demonstrated a preference for high-quality office buildings and other facilities.
Concentrate Activities Where High Barriers to Entry Exist
We focus our development expertise within those markets where the lack of available sites and the difficulty of receiving the necessary approvals for development
and the necessary financing constitute high barriers to the creation of new supply, and where skill, financial strength and diligence are required to successfully
develop, finance and manage high-quality properties.
Leverage the Skills of our Management Team
We take on complex, technically challenging projects, leveraging the skills of our management team to successfully develop, acquire or reposition properties that
other organizations may not have the capacity or resources to pursue.
Become the Landlord of Choice
We concentrate on high-quality real estate designed to meet the demands of today's tenants who require sophisticated telecommunications and related
infrastructure and support services, and to manage those facilities so as to become the landlord of choice for both existing and prospective clients.

12. Company Strategies Cont.
Opportunistically Acquire Assets
When appropriate we acquire assets which increase our penetration in the markets where we have chosen to concentrate and which exhibit an opportunity to
improve or sustain returns through repositioning (through a combination of capital improvements and shift in marketing strategy), changes in management focus
and re-leasing as existing leases terminate.
Explore Joint-Venture Opportunities
We explore joint venture opportunities primarily with existing owners of land parcels located in desirable locations who seek to benefit from the depth of
development and management expertise we are able to provide and our access to capital, and/or to explore joint venture opportunities with strategic institutional
partners, leveraging our skills as owners, operators and developers of Class A office space.
Demonstrate Value Creation
We pursue on a selective basis the sale of properties to take advantage of our value creation and the demand for our premier properties.
Offer Fee Development Services
We seek third-party development contracts, especially during times when our internal development pipeline is low or when new development is less-warranted
due to market conditions, to provide us with additional fee income and to enable us to retain and utilize our existing development and construction management
staff.
Enhance our Capital Structure
We continue to enhance our balanced capital structure through our access to a variety of capital sources.

13. Competitive Profile Matrix
(CPM)

14. CPM Boston Properties Trump S.L. Green Realty
Critical Success
Factors Weight Rating Score Rating Score Rating Score
Market
Diversity
.28 2 .56 3 .84 1 .28
Tenant
Satisfaction
.31 3 .93 3 .93 4 1.24
Brand
Recognition
.11 2 .22 4 .44 1 .11
Investment
opportunity
.13 3 .39 2 .26 3 .39
Liquidity of
assets
.17 3 .51 3 .51 2 .34
Total 1.00 2.61 2.98 2.36

15. CPM Breakdown
The Ratings are simply a comparison and hold no value based on numerical
standings
Each Factor holds a different weight based on its importance in the industry
Boston properties sits firmly in the middle of its selected competitors with a
rating of 2.61
Improvements for Boston Properties should be focused on Brand Recognition
and Market Diversity

16. External Opportunities
● Current low inflation rate of 1.71%.
● Average office space rent-price increased 2.6% in the past year.
● Office vacancy rate steadily decreased from 15% in 2014 to 12% in 2019,
hitting a record low.
● Projected unemployment rate for 2020 is 3.7%.
● Potential for international market penetration.
● Competitor, WeWork, has recently had negative publicity regarding their
founder & CEO.

17. External Threats
● Increase in counterfeit/low-quality building materials.
● Survey showed 75% of economists predict economic slowdown/ recession
by 2021.
● Increased environmental regulations in multiple cities across the U.S.
● There has been a 6.5% increase in data breaches in the past year.

18. External Factor Evaluation
Matrix (EFE)

19. EFE Breakdown
EFE (External Factor Evaluation)
The EFE looks at a company’s response to an industry’s external threats and
opportunities
The Ratings range from 1-4
4- Superior Response
3- Above Average Response
2- Average Response
1- Below-Average Response
Each Factor holds a different weight based on its importance in the industry

20. EFE
Key External Factors Weight Rating
Weighted
Score
Opportunities
1. Current low inflation rate of 1.71%. .10 2 .20
2. Average office space rent-price increased 2.6% in
the past year.
.05 3 .15
3. Office vacancy rate steadily decreased from 15%
in 2014 to 12% in 2019, hitting a record low.
.10 4 .40
4. Projected unemployment rate for 2020 is 3.7%. .10 4 .40
5. Potential for international market penetration. .10 3 .30
6. Competitor, WeWork, has recently had negative
publicity regarding their founder & CEO
.05 1 .05

21. EFE Key External Factors Weight Rating
Weighted
Score
Threats
1. Increase in counterfeit/low-quality building
materials.
.10 2 .20
2. Survey showed 75% of economists predict
economic slowdown/ recession by 2021.
..05 2 .10
3. Increased environmental regulations in multiple
cities across the U.S.
.20 3 .60
4. There has been a 6.5% increase in data breaches
in the past year.
.15 2 .30
Total 1.00 2.70

22. Internal Strengths
● Company assets have steadily increased from $18.6 billion in 2016 to
$21.27 billion 2019.
● Company market value has steadily increased from $31.73 in 2009 to
$132.68 today.
● On track to reduce environmental impact (energy, waste, water, gas) by 40%
before 2025.
● Addition of 156 electric vehicle charging stations to various properties.
● Board of Directors is 36% female, 10% higher than S&P 500 average.

23. Internal Weaknesses
● 70% of employees are white, with only 34% of 2019 hires being of another
race.
● Lack of investment into new technologies
● Net Promoter Score of 4.
● Current asset ratio and liquid ratio suggests the company can use cash
more efficiently

24. Internal Factor Evaluation
Matrix (IFE)

25. IFE Breakdown
IFE (Internal Factor Evaluation)
The IFE looks at a company's internal strengths and weaknesses
The Ratings range from 1-4
4- Major Strength
3- Minor Strength
2- Minor Weakness
1- Major Weakness
Each Factor holds a different weight based on its importance in the industry

26. IFE Key Internal Factors Weight Rating
Weighted
Score
Strengths
1. Company assets have steadily increased from
$18.6 billion in 2016 to $21.27 billion 2019.
.10 4 .40
2. Company market value has steadily increased
from $31.73 in 2009 to $132.68 today.
.15 3 ..45
3. On track to reduce environmental impact (energy,
waste, water, gas) by 40% before 2025.
.10 4 .40
4. Addition of 156 electric vehicle charging stations
to various properties.
.10 3 .30
5. Board of Directors is 36% female, 10% higher
than S&P 500 average.
.10 4 .40

27. IFE
Key Internal Factors Weight Rating
Weighted
Score
Weaknesses
1. 70% of employees are white, with only 34% of
2019 hires being of another race.
.05 1 .05
2. Lack of investment into new technologies .15 2 .30
3. Net Promoter Score of 4. .10 2 .20
4. Current asset ratio and liquid ratio suggests the
company can use cash more efficiently
.15 1 .15
Total 1.00 2.65

28. Strengths-Weaknesses
Opportunities-Threats Matrix
(SWOT)

29. SWOT (SO)
Strengths
1. Company assets have steadily increased from $18.6 billion in 2016 to $21.27 billion 2019.
2. Company market value has steadily increased from $31.73 in 2009 to $132.68 today.
3. On track to reduce environmental impact (energy, waste, water, gas) by 40% before 2025.
4. Addition of 156 electric vehicle charging stations to various properties.
5. Board of Directors is 36% female, 10% higher than S&P 500 average.
Opportunities SO Strategies
1. Current low inflation rate of 1.71%.
2. Average office space rent-price
increased 2.6% in the past year.
3. Office vacancy rate steadily decreased
from 15% in 2014 to 12% in 2019,
hitting a record low.
4. Projected unemployment rate for 2020
is 3.7%.
5. Potential for international market
penetration
6. Competitor, WeWork, has recently had
negative publicity regarding their
founder & CEO.
1. Gradually expand into international markets
beginning in China by purchasing 2 office buildings
in Shanghai. (S1, O5)
2. Expand further south in the U.S., beginning with
Houston, by advertising their high customer
satisfaction ratings & their environmentally-friendly
standards. (S1, S3, O2)

30. SWOT (WO)
Weaknesses
1. 70% of employees are white, with only 34% of 2019 new hires being of another race.
2. Net Promoter Score of 4.
3. Current asset ratio and liquid ratio suggests the company can use cash more efficiently
4. Lack of investment into new technologies
Opportunities WO Strategies
1. Current low inflation rate of 1.71%.
2. Average office space rent-price
increased 2.6% in the past year.
3. Office vacancy rate steadily decreased
from 15% in 2014 to 12% in 2019,
hitting a record low.
4. Projected unemployment rate for 2020
is 3.7%.
5. Potential for international market
penetration
6. Competitor, WeWork, has recently had
negative publicity regarding their
founder & CEO.
1. Expand into Shanghai by purchasing 2 buildings in
order to invest more cash into the future of the
company and proceed with international market
penetration (W3,O5).
2. Bring on CTO to run team of new employees to
focus on technological advancements (W4,O4).

31. SWOT (ST)
Strengths
1. Company assets have steadily increased from $18.6 billion in 2016 to $21.27 billion 2019.
2. Company market value has steadily increased from $31.73 in 2009 to $132.68 today.
3. On track to reduce environmental impact (energy, waste, water, gas) by 40% before 2025.
4. Addition of 156 electric vehicle charging stations to various properties.
5. Board of Directors is 36% female, 10% higher than S&P 500 average.
Threats ST Strategies
1. Increase in counterfeit/low-quality
building materials
2. Survey showed 75% of economists
predict economic slowdown/ recession
by 2021.
3. Increased environmental regulations in
multiple cities across the U.S.
4. There has been a 6.5% increase in
data breaches in the past year.
1. Implement a CHP system to use heat generated
from electricity to heat water. (S4, S3, T3)
2. To prepare for a potential recession, generate a
defensive position by pausing all plans to acquire
any new physical property assets. (T2, S1)

32. SWOT (WT)
Weaknesses
1. 70% of employees are white, with only 34% of 2019 new hires being of another race.
2. Net Promoter Score of 4.
3. Current asset ratio and liquid ratio suggests the company can use cash more efficiently
4. Lack of investment into new technologies
Threats WT Strategies
1. Increase in counterfeit/low-quality
building materials
2. Survey showed 75% of economists
predict economic slowdown/ recession
by 2021.
3. Increased environmental regulations in
multiple cities across the U.S.
4. There has been a 6.5% increase in
data breaches in the past year.
1. Invest free cash into quality control inspectors for
building materials. (T1, W3)
2. Invest $500,000 into cyber-security methods in order
to protect data and strategies. (T4, W4)

33. Product Positioning Maps
Customers
Unsatisfied
Customers
Satisfied
High ROI
Low ROI
Est. in few
cities
Est. in many
cities
High Revenue (as of
last Quarter)
Low Revenue (as of
last quarter)

34. Strategic Position and
Action Evaluation Matrix
(SPACE)

35. SPACE Matrix
Internal Analysis External Analysis
Financial Position (FP) Stability Position (SP)
Return on Investment is 3.71 when the
industry average is 4.80
4 Risk involved in business -5
Net Profit Margin is 21.06 when the industry
average is 36.91
2 Competitive Pressure -3
Revenue increased by 4.42% from last year 4 Price Range of Competitors -2
Operating Cash Flow Per Share is 7.44,
which is up by 1.53 from last year
5 Barriers of Entry into Market -3
Financial Position (FP) Average 3.75 Stability Position (SP) Average -3.25

36. SPACE Matrix Continued
Internal Analysis External Analysis
Competitive Position (CP) Industry Position (IP)
Market Share -1 Ease of Entry into Market 2
Customer Loyalty -3 Growth Potential 4
Occupancy Rates -1 Profit Potential 5
Customer Service -2 Inflation Rate 3
Responsiveness to tenants -2
Competitive Position (CP) Average -1.8 Industry Position (IP) Average 3.5

37. SPACE Matrix Coordinate Calculation
FP Average + SP Average = 3.75 + (-3.25) = 0.50 y-axis
CP Average + IP Average = -1.8 + 3.5 = 1.70 x-axis
Coordinate (1.7,0.5 )
Conclusion: Vector points in the Aggressive Quadrant

38. Space Diagram
Conservative
Defensive
Aggressive
Competitive
FP
CP
SP
IP
+7
-7
-7 +7
(1.7,0.5)

39. Potential Strategies Based on Space Matrix
Conclusion: Vector point in the Aggressive Quadrant
Potential Strategies:
● Backward, forward, horizontal integration
● Market penetration
● Market development
● Product development
● Diversification (related or unrelated)

40. Boston Consulting Group
Matrix (BCG)

41. BCG
Division
$Revenues
(in thousands)
Percent
Revenues
$Profits
(in thousands)
Percent
Profits
Largest Rival’s
Market Share
Our Market
Share
Relative
Market Share
Industry Growth
Rate (%)
Office Rentals 2,521,868 96.92 890,394 97.18 19.05
(Boston Properties)
19.05 1 4.5%
Hotels 45,603 1.75 878 0.09 12.6
(Host Hotels and
Resorts)
0.1 0.008 3%
Developmental
and
Management
Services
34,605 1.33 24,978 2.73 9.6 3.2 0.33 2.7%
Total 2,602,076 100 916,250 100 __ __ __ __

42. BCG
Stars
Dogs
Question Marks
Cash Cows
Medium
0.5
High
1.0
Low
0.0
Medium 0
High +20
Low -20
Relative Market Share Position in the Industry
Industry
Sales
Growth
Rate (%)
97.18%
Office
Rentals 2.73%
Development
and
Management
Services
0.09% Hotels

43. Grand Strategy Matrix
(GSM)

44. GSM
II
III
I
IV
Rapid
Market
Growth
Weak
Competitive
Position
Slow
Market
Growth
Strong
Competitive
Position

45. Two Potential Strategies
1. Develop markets in the southern United States starting with
Houston by purchasing a property and renovating it to meet
Boston Property standards. This will allow us to establish a
market segment and then work on further market penetration
through property acquisition.
1. Hire ten new employees with the goal of improving our web
interfaces as well as increasing our online security. By
increasing our technological capabilities it will allow us to
rapidly adapt to the changes in market.

46. Strategy 1 - Houston Expansion
Having a diverse geographical base is critical for property success. In times of potential recession
different regions of the country can be affected differently.
Houston provides a completely new market that is socioeconomically and geographically different
from all other established markets.
Houston also does not have any zoning laws that prevent us from confining our investments to
specific parts of the city allowing us to cover a broad geographic area of the city.
We chose Houston over other economically strong southern cities because of a pattern we noticed
in our existing market. Houston is in close proximity to the ocean just like ⅘ of our existing markets.
Houston was recently ranked as #3 in job creation and is considered a “sleeper” in the Texas
residential real estate market

47. Cost Breakdown- Strategy 1
● Based on our research, an average skyscraper will cost about $500 million
○ Renovation costs could go up to $5 million in addition
● While this seems quite pricey, the return will be approximately 2.69% per
quarter

48. Strategy 2 - Technology Expansion Team
Technology is a drastically changing aspect of not only the business world, but
society as a whole. Having the company be more accessible to consumers and
increasing cyber-security are a must if the company plans to continue to grow.
There is already a current team under the CTO, but adding additional employees
will drastically improve the effectiveness and impact of this group.

49. Cost Breakdown- Strategy 2
● $4,000 for hiring/training per new employee
○ $40,000
● $2,000 per new employee (one-time fee for technology)
○ $20,000
● $75,000 per year salary per new employee
○ $750,000/yr
● $500,000 invested into cyber-security methods
Total Cost=$1,310,000
● Cyber attacks cost larger firms between $825,000 and $2,000,000
○ Increase of 23% since 2013

50. Quantitative Strategic
Planning Matrix (QSPM)

51. QSPM
Strategic Alternatives
Strategy 1: Houston Expansion Strategy 2: Technology
Expansion
Key Factors Weight AS TAS AS TAS
Opportunities
1. Current low inflation rate of 1.71%.
2. Average office space rent-price increase
2.6% in the past year.
3. Office vacancy rate steadily decreased
from 15% in 2014 to 12% in 2019, hitting a
record low.
4. Projected unemployment rate for 2020 is
3.7%
5. Potential for international market
penetration.
6. Competitor, WeWork, has recently had
negative publicity regarding their founder
& CEO
.05
.15
.15
.10
.10
.05
3
4
3
2
-
1
.15
.60
.45
.20
-
.05
1
1
1
4
-
1
.05
.15
.15
.40
-
.05
Threats
1. Increase in counterfeit/low-quality building
materials
2. Survey showed 75% of economists predict
economic slowdown/ recession by 2021.
3. Increased environmental regulations in
multiple cities across the U.S.
4. There has been a 6.5% increase in data
breaches in the past year.
.05
.10
.10
.15
3
2
-
1
.15
.20
-
.15
3
4
-
4
.15
..40
-
.60
Total 1.00 1.95 1.95

52. QSPM
Strategic Alternatives
Strategy 1: Houston Expansion Strategy 2: Technology Expansion
Key Factors Weight AS TAS AS TAS
Strengths
1. Company assets have steadily increased
from $18.6 billion in 2016 to $21.27 billion
2019.
2. Company market value has steadily
increased from $31.73 in 2009 to $132.68
today.
3. On track to reduce environmental impact
(energy, waste, water, gas) by 40% before
2025.
4. Addition of 156 electric vehicle charging
stations to various properties.
5. Board of Directors is 36% female, 10%
higher than S&P 500 average.
.15
.10
.10
.05
.05
3
-
2
1
-
.45
-
.20
.05
-
3
-
1
2
-
.45
-
.10
.10
-
Weaknesses
1. 70% of employees are white, with only 34%
of 2019 new hires being of another race.
2. Net Promoter Score of 4.
3. Current asset ratio and liquid ratio suggests
the company can use cash more efficiently
4. Lack of investment into new technologies
.05
.10
.20
.20
-
1
4
1
-
.10
.80
.20
-
1
4
4
-
.10
.80
.80
Total 1.00 1.80 2.35

53. Chosen Strategy
We have chosen to implement our second strategy
● It presents a more immediate need since we already have multiple
geographic markets that we serve but our technology is going to become
insufficient very soon
● In addition, improving our technology is not something that would become a
detriment if the predicted financial collapse is to occur
● We also have enough cash on hand to finance the project without the need
to issue more stocks or create new debt

54. EPS/EBIT Common Stock Financing
Common Stock Financing
Recession Normal Boom
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
*Not necessary with in-house
financing*

55. EPS/EBIT Debt Financing
Debt Financing
Recession Normal Boom
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
*Not necessary with in-house
financing*

56. EPS/EBIT 50% Stock - 50% Debt
50% Stock - 50% Debt Financing
Recession Normal Boom
EBIT
Interest
EBT
Taxes
EAT
# Shares
EPS
*Not necessary with in-house
financing*

57. Projected Balance Sheet
December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021
ASSETS
Real estate, at cost $21,649,896 $22,203,150 $22,770,542 $23,352,434
Less: accumulated depreciation (4,897,777) (5,205,920) (5,533,450) (5,881,586)
Total real estate 16,752,119 16,997,230 17,245,927 17,498,264
Cash and cash equivalents 543,359 651,515 781,778 938,149
Cash held in escrows 95,832 121,951 152,934 193,198
Investments in securities 28,198 27,235 26,305 25,407
Tenant and other receivables 86,629 81,072 75,871 71,005
Related party note receivable 80,000 160,000 320,000 640,000
Note receivable 19,468 38,936 77,872 155,744
Accrued rental income 934,896 1,008,217 1,087,288 1,172,561
Deferred charges 678,724 678,410 678,096 677,782
Prepaid expenses and other assets 80,943 83,915 86,996 90,190
Investments in unconsolidated joint ventures 956,309 1,292,693 1,747,401 2,362,053
Total Assets $20,256,477 $21,140,285 $21,835,897 $23,797,931

58. Projected Balance Sheet
December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021
LIABILITIES AND EQUITY
Liabilities:
Mortgage notes payable $2,964,572 $2,949,863 $2,935,227 $2,920,664
Unsecured senior notes, net 7,544,697 7,842,064 8,151,151 8,472,421
Unsecured line of credit - - - -
Unsecured term loan 498,488 498,488 498,488 498,488
Accounts payable and accrued expenses 276,645 221,790 177,812 142,544
Dividends and distributions payable 165,114 191,188 221,379 256,339
Accrued interest payable 89,267 94,888 100,863 107,214
Other liabilities 503,726 563,472 630,304 705,064
Total Liabilities $12,042,509 $12,361,753 $12,715,225 $13,102,743

59. Projected Balance Sheet
December 31, 2018 December 31, 2019 December 31, 2020 December 31, 2021
LIABILITIES AND EQUITY CONTINUED
Equity:
Preferred stock 200,000 200,000 200,000 200,000
Common stock 1,545 1,547 1,549 1,551
Additional paid-in capital 6,407,623 6,457,338 6,467,191 6,497,182
Dividends in excess of earnings (675,534) (638,725) (603,922) (571,015)
Treasury common stock at cost (2,722) (2,722) (2,722) (2,722)
Accumulated other comprehensive loss (47,741) (45,053) (42,516) (40,123)
Total stockholders’ equity attributed to BXP 5,883,171 5,952,385 6,019,580 6,084,874
Noncontrolling interests:
Common units of BPX Limited Partnership 619,352 633,965 648,923 664,233
Property partnerships 1,711,455 1,739,150 1,767,293 1,795,892
Total equity 8,213,978 8,325,500 8,435,796 8,544,999
Total liabilities and equity $20,256,477 $21,140,285 $21,835,897 $23,797,931

60. Projected Income Statement
For the year ended December 31,
2018 2019 2020 2021
(in thousands)
Total Revenue $2,717,076 $2,832,076 $2,951,943 $3,076,884
Total Expenses (1,791,579) 1,889,192 1,992,123 21,00,663
Other income (expense) 212,934 80,239 (84,518) (288,078)
Net income 712,563 862,645 1,044,338 1,264,299
Net income attributable to noncontrolling interests (129,716) (159,390) (195,800) (240,465)
Net income attributable to BXP 582,847 703,255 848,538 1,023,834
Preferred Dividends (10,500) (10,500) (10,500) (10,500)
Net income attributable BXP common shareholders 572,347 692,755 838,494 1,014,893
Basic EPS for BPX common shareholders
Net Income $3.71 $4.48 $5.41 $6.54
Weighted average # of common shar 154,427 154,644 154,901 155,139

61. Implementation Strategy
Steps:
1. Reallocate technology responsibilites from CIO to a new CTO
2. Create a new team of information technology and computer experts from
both outside and from the preexisting technology department to report to
CTO
3. Have team create new operating systems and increase cyber security
4. Have team train managers on how to use the new system
5. Create additional teams in each city to help operate the system when it is
online

62. Long Term Objectives
● Improve public online interfaces to be more user-friendly
● Prevent extreme costs associated hacking and system breaches.
○ Prevented costs should remain higher than the cost to
implement our strategy.
● Continuously advance technology in & throughout our company

63. Recommended Annual Policies
1. Perform Financial audits
2. Do a quality check on all buildings
3. Hold quarterly shareholder meetings
4. Maintain high standards of technology and environmental awareness
5. Conduct semi-annual tenant surveys to maintain high satisfaction rates
6. Conduct semi-annual employee performance reviews
7. Compare online user interface to competition and perform updates if needed
8. Employ white-collar hackers to test security systems once quarterly

64. Strategy Evaluation
Over the next three years:
1. Conduct third-party security tests to ensure BXP’s level of cyber-security is
effective
2. Compare BXP’s costs associated with cyber hacks to that of comparable
companies
3. Compare the actual costs of the strategy to the estimated savings on cost
associated with previous cyber security levels
4. Conduct research to ensure that BXP’s technology standards are held highly

65. Work Cited
“About Boston Properties.” Boston Properties Bxp, www.bostonproperties.com/pages/about.
“About the Firm.” Hines, www.hines.com/about.
“About Us.” Vornado Realty Trust, www.vno.com/about/overview.
Asilva. “How SL Green Delivers a Best-in-Class Tenant Experience Across New.” Asilva, 17 Sept. 2019,
www.buildingengines.com/landing/how-sl-green-delivers-best-in-class-tenant-experience-across-new-york-city-with-building-
engines.
Asilva. “How SL Green Delivers a Best-in-Class Tenant Experience Across New.” Asilva, 17 Sept. 2019,
www.buildingengines.com/landing/how-sl-green-delivers-best-in-class-tenant-experience-across-new-york-city-with-building-
engines.
Barker, Brandon. “Houston's Housing Market: A Real Estate Sleeper in the Big State.” Learn Real Estate Investing,
learn.roofstock.com/blog/houston-housing-market.
“Boston Properties - Org Chart.” THE ORG, theorg.com/org/boston-properties.

66. Work Cited
“Boston Properties, Inc.” FundingUniverse, www.fundinguniverse.com/company-histories/boston-properties-inc-history/.
“Boston Properties, Inc's vs. Its Competitors Results.” CSIMarket, csimarket.com/stocks/competition2.php?&code=BXP.
“Boston Properties.” Fortune, Fortune, 16 May 2019, fortune.com/fortune500/2019/boston-properties/.
Green, S.L. “About Us.” SL Green | About, slgreen.com/about.
“Guide to Renewable Energy for Small Businesses.” Business Renewable Energy Guide | Make It Cheaper,
www.makeitcheaper.com/business-energy/guide-to-renewable-energy-for-small-businesses.
“Inflation Rate between 2018-2019: Inflation Calculator.” Inflation Rate in 2019 | Inflation Calculator, 2019,
www.in2013dollars.com/inflation-rate-in-2019.
only, Dividend Sleuth Long. “Boston Properties: Office Space.” Seeking Alpha, 25 July 2019,
seekingalpha.com/article/4277533-boston-properties-office-space.

67. Work Cited
Properties, Boston. “Boston Properties Annual Report.” Investors.bpx.com, 2017, investors.bxp.com/static-files/3423e710-7e4b-
4952-8941-876ef8385cd9.
Properties, Boston. “Our Strategy.” Boston Properties Bxp, www.bostonproperties.com/pages/about/our-strategy.
“Properties.” SL Green | Properties, slgreen.com/properties.
Reit. “REITs Assess the Potential Fiscal Impacts of Climate Change.” Nareit, www.reit.com/news/reit-magazine/july-august-
2019/reits-assess-potential-fiscal-impacts-climate-change.
“Sl Green Realty Corp's vs. Its Competitors Results.” CSIMarket, csimarket.com/stocks/competition2.php?&code=SLG.