One and Two Reston Overlook, Reston, VA (left) 265 Franklin Street, Boston, MA  We believe there is good reason for Boston Properties’ long-term record of positive performance in both good times and bad. The superior quality, location and operating standards of our Class A real estate portfolio continue to  give us a competitive advantage. Signing long-term leases with strong tenants, which has provided us with one of  the longest lease term profiles in the industry, limits our lease termination exposure in any year. And hedging against potential economic downturns by re-leasing space well in advance of its availability allowed us to lock in rents during 2000 and early in 2001 before rent levels began to erode.  While ensuring the continued profitability of our existing portfolio is a primary focus, Boston Properties also took  significant steps during 2001 to maintain its growth as a premier owner, developer and operator of high quality office space. These include: Tenants began moving into our new 930,000 SF office tower at 111 Huntington Avenue upon its completion on schedule on September 1. The office space is 95.7% leased and the building has already become an immediately recognizable icon on the Boston skyline.  In April, Boston Properties acquired a controlling interest in the 1.6 million SF Citigroup Center building, one of New York’s most prestigious assets. With insignificant near-term rollover and leases at rents well below expected market levels, it provides significant growth potential for renewals and new leases starting in 2005. At year’s end the City of New York issued a base building Certificate of Occupancy at 5 Times Square. Reaching this last milestone guarantees that Ernst & Young, who has leased all the office space in this 1.1 million SF building, will begin  paying its entire rent during the second quarter of 2002. ● The Acquisition of Citigroup Center. GROWING THE PORTFOLIO ● Occupancy of 111 Huntington Avenue, Prudential Center, Boston. ● Completion of 5 Times Square. CONTINUES 5 Income Distribution 1 By Region  (in percent) WASHINGTON, D.C. BOSTON NEW YORK  CITY SAN FRANCISCO OTHER 2 22% 26% 20% 20% 12% 1 GAAP Net Operating Income for 2001 2 Baltimore, Richmond, NJ and PA