Funds from operations for the third quarter were $99 million as compared with $86.6 million for the same period last year. The company's portfolio consists of 145 properties totaling more than 42.8 million sf, including eight properties under development totaling 3.1 million sf. The overall occupancy rate for the properties in use is 95.1%.

Among the company's significant developments this past quarter is the $1.06 billion acquisition of 399 Park Avenue, a 1.68 million-sf building in New York City. The building is fully tenanted, including approximately 40% that is leased to Citigroup as its corporate headquarters. Boston Properties also completed the disposition of 7600 Boston Blvd., 7700 Boston Blvd. and 7702 Boston Blvd., office buildings in Springfield, VA, recognizing a net gain of approximately $13.5 million. The disposition of land parcels in Herndon, VA and South San Francisco was completed this quarter as well, recognizing a net gain of approximately $4.4 million. A half-acre site located in the Capital Hill submarket of Washington, DC was acquired by Boston Properties, which is expected to support development of 170,000 sf of office space.

Boston Properties' lease restructuring of its three hotel properties was completed this quarter. A taxable REIT subsidiary was formed to operate the properties. Marriott will continue to manage the properties under the terms of the existing management agreements.