Item 8.01. Other Events.
On April 28, 2020, Boston Properties, Inc. (the "Company"), the general partner
of Boston Properties Limited Partnership, issued a press release announcing its
unaudited financial results for the first quarter of 2020 (the "Press Release").
Selected financial results and related information of the Company from the Press
Release are filed as Exhibit 99.1 hereto and incorporated by reference herein.
Additionally, the information set forth below contains business updates
pertaining to the current
COVID-19
pandemic, including information discussed on the conference call held by the
Company on April 29, 2020. Information set forth below regarding percentages of
April collections is based on all rent billed by the Company, including all
amounts from consolidated operations and all unconsolidated joint ventures,
other than Gateway Commons for which the Company does not handle billing. To the
extent these collections related to consolidated or unconsolidated joint
ventures, the impact on the Company's net income attributable to Boston
Properties, Inc. will depend, among other things, on the Company's percentage
interests in these joint ventures.
Additional business updates pertaining to the current
COVID-19
pandemic include:
   ?  During 2019, approximately 86% of the aggregate amount of the Company's
      consolidated revenues and the Company's share of revenues from
      unconsolidated joint ventures, were derived from office leases, 6% of these
      revenues were derived from retail leases and the remainder were primarily
      derived from residential leases, parking, the Company's hotel property and
      development and management services.


   ?  For the month of April, as of April 28, 2020, the Company had collected 95%
      of its total commercial rent payments due April 1 from office tenants. As a
      result of the impact of the current environment, the Company expects a
      reduction from its prior revenue expectations as a result of the slowdown in
      new leasing activity for vacant and expiring space and the impact of
      construction delays on the Company's revenue recognition related to tenants
      who are currently building out space.


   ?  As of April 28, 2020, the Company had collected 35% of its total commercial
      rent payments due in April from retail tenants. The Company is actively
      working on lease amendments with retail tenants in this category that the
      Company believes have justifiable financial needs. The Company is
      considering a number of alternative structures, but expects most amendments
      to provide for relief from the requirement to pay cash rent for a period of
      time followed by a future increase in rent, an extension of the term of the
      lease or both. The result of any such amendments is expected to be a loss of
      near-term cash revenue from these leases but a less significant impact on
      GAAP revenues due to the expected straightlining of lease revenues for those
      tenants the Company believes will resume operations.


   ?  Parking revenue generally consists of two primary components: revenue from
      monthly passes and hourly/daily parking revenue. During 2019, total parking
      revenue for the Company was approximately $100 million and the Company's
      share of total parking revenue from unconsolidated joint ventures was
      approximately $13 million. Approximately $40 million of this aggregate
      amount of consolidated and unconsolidated parking revenue was derived from
      hourly/daily parking. In April, with
      stay-at-home
      orders and business closures, the Company generated minimal hourly/daily
      parking revenue and this trend may continue for as long as these
      stay-at-home
      orders and business closures continue. Some of the Company's monthly parking
      revenues are contractual agreements embedded in its leases, and some are at
      will individual agreements.


   ?  The Company's Boston Marriott Cambridge hotel property has been closed since
      March 22, 2020, and the hotel is currently running at a monthly deficit. It
      is unclear when the hotel will open.


The Company is supplementing the risk factors described under "Item 1A. Risk
Factors" in the Company's Annual Report on Form
10-K
for the year ended December 31, 2019 (the "Annual Report") with the following
risk factor, which should be read in conjunction with the other risk factors
presented in the Annual Report. All references to "we," "us" and "our" in this
risk factor refer to the Company.
                                       2

--------------------------------------------------------------------------------

The

COVID-19


pandemic has caused severe disruptions in the United States and global economies
and we expect it will continue to materially and adversely affect our financial
condition, results of operations, cash flows, liquidity and performance and that
of our tenants.
Since being reported in December 2019,
COVID-19
has spread globally, including to every state in the United States. On March 11,
2020, the World Health Organization declared
COVID-19
a global pandemic, and on March 13, 2020, the United States declared a national
emergency with respect to
COVID-19.
The global impact of the
COVID-19
pandemic is continually evolving and public health officials and governmental
authorities, including those in all of the markets in which we operate, have
reacted by taking measures such as prohibiting people from congregating in
heavily populated areas, instituting quarantines, restricting travel, issuing
"stay-at-home"
orders, restricting the types of businesses that may continue to operate
(including the types of construction projects that may proceed) and closing
schools, among many others. Most of these restrictions began in earnest in March
2020 and they quickly had a material adverse impact on economic and market
conditions around the world, including the United States and the markets in
which our properties are located, and on us. It is possible that public health
officials and governmental authorities in the markets in which we operate may
impose additional restrictions in an effort to slow the spread of
COVID-19
or may relax or revoke existing restrictions too quickly, which could, in either
case, exacerbate the severity of these adverse impacts on the economy. There is
great uncertainty regarding the duration and breadth of the
COVID-19
pandemic, as well as possible future responses, which makes it impossible for us
to predict with certainty the impact that
COVID-19
will have on us and our tenants at this time. Factors related to
COVID-19
that have had, or could have, a material adverse effect on our results of
operations and financial condition, include:
   ?  a complete or partial closure of, or other operational issues at, one or
      more of our properties resulting from government or tenant action, which
      could adversely affect our operations and those of our tenants;


   ?  reduced economic activity impacting the businesses, financial condition and
      liquidity of our tenants has caused, and is expected to continue to cause,
      one or more of our tenants to be unable to meet their obligations to us,
      including their ability to make rental payments, in full or at all, or to
      otherwise seek modifications of such obligations, including rent
      concessions, deferrals or abatements, or to declare bankruptcy;


   ?  the failure of our tenants to properly implement or deploy their business
      continuity plans, or if those plans are ineffective, it could have a
      material adverse effect on our tenants' businesses and their ability to pay
      rent;


   ?  the impact of new or continued complete or partial shutdowns of the
      operations of one or more of our tenants' businesses, including office,
      hotel and retail tenants, and parking operators, temporary or long-term
      disruptions in our tenants' supply chains from local, national and
      international suppliers or delays in the delivery of products, services or
      other materials necessary for our tenants' operations, could force our
      tenants to reduce, delay or eliminate offerings of their products and
      services, which could result in less revenue, income and cash flow, and
      possibly their bankruptcy or insolvency, which in turn could:


  o reduce our cash flows,


  o adversely impact our ability to finance, refinance or sell a property,


        o  adversely impact our ability to continue paying dividends to our
           stockholders at current levels, or at all, and


        o  result in additional legal and other costs to enforce our rights,
           collect rent and/or
           re-lease
           the space occupied by the distressed tenant;


                                       3

--------------------------------------------------------------------------------


   ?  the duration and scope of the mandatory business closures and
      "stay-at-home"
      orders have had, and are expected to continue to have, a severe negative
      impact on our retail tenants that depend on
      in-person
      interactions with their customers to generate revenues and have resulted,
      and are expected to continue to result, in most retail tenants being unable
      to make timely rental payments in full or at all;


   ?  the extent to which
      COVID-19
      decreases customers' willingness to frequent, or prevents customers from
      frequenting, our tenants' businesses in the future, may result in our retail
      tenants' continued inability to make timely rental payments to us under
      their leases;


   ?  many of our retail and some of our office tenants have approached us seeking
      either rent concessions, deferrals or abatements, and the extent to which we
      grant these requests or instead seek to enforce our legal remedies could
      have a material adverse effect on our results of operations, liquidity and
      cash flows;


   ?  the degree to which our tenants' businesses have been and continue to be
      negatively impacted may require us to
      write-off
      a tenant's accrued rent balance and this could have a material adverse
      effect on our results of operations and liquidity;


   ?  if new or existing actions or measures implemented to prevent the spread of
      COVID-19
      continue to result in increasing unemployment, it may negatively affect the
      ability of our residential tenants to generate sufficient income to pay, or
      make them unwilling to pay rent, in full or at all, in a timely manner;


   ?  the impact of prolonged restrictions on freedom of movement and business
      operations, such as travel bans, business closures and
      "stay-at-home"
      orders have had, and are expected to continue to have, a material adverse
      effect on the operators of our parking garages and our hotel property, which
      negatively impacts our revenues and may also result in a decrease in demand
      for hotel stays even after the travel bans and other restrictions are
      lifted;


   ?  our failure, or that of any of our joint venture partners', to meet our or
      their, as applicable, responsibilities or obligations to the other or to
      third parties, such as lenders, including a failure to contribute additional
      capital needed by the ventures or a default by a party under a joint venture
      agreement or other agreement relating to a joint venture, each of which, in
      our case, could result in dilution of our interest or a loss of our
      management and other rights relating to our joint ventures, and in the case
      of a joint venture partner, could result in our payment of the partner's
      share of the additional capital;


   ?  the impact of
      COVID-19
      could result in an event or change in circumstances that results in an
      impairment in the value of our properties or our investments in
      unconsolidated joint ventures, and any such impairment could have a material
      adverse effect on our results of operations in the periods in which the
      charge is taken;


   ?  we may be unable to restructure or amend leases with certain of our tenants
      on terms favorable to us or at all;


   ?  the impact and validity of interpretations of lease provisions and related
      claims by tenants regarding their obligations to pay rent as a result of
      COVID-19,
      and any court rulings or decisions interpreting these provisions, could have
      a material adverse effect on our results of operations and liquidity;


   ?  restrictions intended to prevent the spread of
      COVID-19
      have limited, and are expected to continue to limit, our leasing activities,
      such as property tours, and may have a material adverse effect on our
      ability to renew leases, lease vacant space or
      re-lease
      available space as leases expire in our properties on favorable terms, or at
      all;


   ?  COVID 19 has caused a material decline in general business activity and
      demand for real estate transactions, and if this persists, it would
      adversely affect our ability or desire to make strategic acquisitions or
      dispositions;


                                       4

--------------------------------------------------------------------------------

? the impact of recent and future efforts by state, local, federal and

industry groups to enact laws and regulations have restricted, and may

further restrict, the ability of landlords, such as us, to collect rent,

enforce remedies for the failure to pay rent, or otherwise enforce the terms

of the lease agreements, such as a rent freeze for tenants or a suspension

of a landlord's ability to enforce evictions;

? the extent of construction delays on our development/redevelopment projects

due to work-stoppage orders, disruptions in the supply of materials, delays

in permitting or inspections, or other factors could result in our failure

to meet the development milestones set forth in any applicable lease

agreement, which could provide the tenant the right to terminate its lease

or entitle the tenant to monetary damages, delay the commencement or

completion of construction and our anticipated

lease-up

plans for a development/redevelopment project or our overall development

pipeline, including recognizing revenue for new leases, that may cause . . .




Item 9.01. Financial Statements and Exhibits.
(d)
Exhibits
.
Exhibit
 Number                                  Description

99.1*        Selected financial and related information of the Company for the
           three months ended March 31, 2020.

101.SCH*   Inline XBRL Taxonomy Extension Schema Document.

101.CAL*   Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*   Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*   Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*   Inline XBRL Taxonomy Extension Definition Linkbase Document.

104*       Cover Page Interactive Data File (formatted as Inline XBRL with
           applicable taxonomy extension information contained in Exhibits 101.*).

* Filed herewith.


                                       7

--------------------------------------------------------------------------------

© Edgar Online, source Glimpses