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Segment Information
 6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
10. Segment Information
The following tables present reconciliations of Net Income Attributable to Boston Properties, Inc. Common Shareholders to the Company’s share of Net Operating Income and Net Income Attributable to Boston Properties Limited Partnership Common Unitholders to the Company’s share of Net Operating Income for the three and six months ended June 30, 2022 and 2021.
BXP
 Three months ended June 30,Six months ended June 30,
2022202120222021
(in thousands)
Net income attributable to Boston Properties, Inc. common shareholders
$222,989 $111,703 $366,044 $203,372 
Add:
Preferred stock redemption charge— — — 6,412 
Preferred dividends— — — 2,560 
Noncontrolling interest—common units of the Operating Partnership
25,708 12,383 42,061 23,422 
Noncontrolling interests in property partnerships18,546 17,164 36,095 33,631 
Interest expense104,142 106,319 205,370 214,221 
Losses from early extinguishment of debt— — — 898 
Net operating income from unconsolidated joint ventures35,710 25,417 73,031 50,212 
Depreciation and amortization expense183,146 183,838 360,770 360,403 
Transaction costs496 751 496 1,082 
Payroll and related costs from management services contracts
3,239 2,655 7,304 6,160 
General and administrative expense34,665 38,405 77,859 83,364 
Less:
Net operating income attributable to noncontrolling interests in property partnerships
47,862 46,287 94,917 90,663 
Gains (losses) from investments in securities(4,716)2,275 (6,978)3,934 
Other income - assignment fee6,624 — 6,624 — 
Interest and other income (loss)1,195 1,452 2,423 2,620 
Gains on sales of real estate96,247 7,756 118,948 7,756 
Income (loss) from unconsolidated joint ventures (54)(1,373)2,135 3,852 
Direct reimbursements of payroll and related costs from management services contracts
3,239 2,655 7,304 6,160 
Development and management services revenue6,354 7,284 12,185 14,087 
Company’s share of Net Operating Income$471,890 $432,299 $931,472 $856,665 
BPLP
 Three months ended June 30,Six months ended June 30,
 2022202120222021
(in thousands)
Net income attributable to Boston Properties Limited Partnership common unitholders
$253,788 $125,846 $415,617 $231,619 
Add:
Preferred unit redemption charge— — — 6,412 
Preferred distributions— — — 2,560 
Noncontrolling interests in property partnerships18,546 17,164 36,095 33,631 
Interest expense104,142 106,319 205,370 214,221 
Losses from early extinguishment of debt— — — 898 
Net operating income from unconsolidated joint ventures35,710 25,417 73,031 50,212 
Depreciation and amortization expense181,416 182,078 357,302 355,578 
Transaction costs496 751 496 1,082 
Payroll and related costs from management services contracts
3,239 2,655 7,304 6,160 
General and administrative expense34,665 38,405 77,859 83,364 
Less:
Net operating income attributable to noncontrolling interests in property partnerships
47,862 46,287 94,917 90,663 
Gains (losses) from investments in securities(4,716)2,275 (6,978)3,934 
Other income - assignment fee6,624 — 6,624 — 
Interest and other income (loss)1,195 1,452 2,423 2,620 
Gains on sales of real estate99,608 7,756 122,992 7,756 
Income (loss) from unconsolidated joint ventures(54)(1,373)2,135 3,852 
Direct reimbursements of payroll and related costs from management services contracts
3,239 2,655 7,304 6,160 
Development and management services revenue6,354 7,284 12,185 14,087 
Company’s share of Net Operating Income$471,890 $432,299 $931,472 $856,665 
Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders, as applicable, the most directly comparable GAAP financial measures, plus (1) preferred stock/unit redemption charge, preferred dividends/distributions, net income attributable to noncontrolling interests, interest expense, losses from early extinguishment of debt, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) gains (losses) from investments in securities, other income - assignment fee, interest and other income (loss), gains on sales of real estate, income (loss) from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue. The Company believes NOI is useful to investors as a performance measure and believes it provides useful information to investors regarding its results of operations and financial condition because, when compared across periods, it reflects 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 attributable to Boston Properties, Inc. common shareholders and net income attributable to Boston Properties Limited Partnership common unitholders. 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 expense, because of historical cost accounting and useful life estimates, may distort
operating performance measures at the property level. NOI presented by the Company may not be comparable to NOI reported by other REITs or real estate companies that define NOI differently.
The Company’s internal reporting utilizes its share of NOI, which includes its share of NOI from consolidated and unconsolidated joint ventures, which is a non-GAAP financial measure that is calculated as the consolidated amount, plus the Company’s share of the amount from the Company’s unconsolidated joint ventures (calculated based upon the Company’s economic percentage ownership interest and, in some cases, after priority allocations), less the Company’s partners’ share of the amount from the Company’s consolidated joint ventures (calculated based upon the partners’ economic percentage ownership interests and, in some cases, after priority allocations, income allocation to private REIT shareholders and their share of fees due to the Company). The Company’s share of NOI from unconsolidated joint ventures does not include its share of losses from early extinguishment of debt from unconsolidated joint ventures, gains on sales of real estate from unconsolidated joint ventures and gain on sale of investment from unconsolidated joint ventures, both of which are included within Income (Loss) From Unconsolidated Joint Ventures in the Company’s Consolidated Statements of Operations.  Management utilizes its share of NOI in assessing its performance as the Company has several significant joint ventures and, 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. In other cases, GAAP requires that the Company consolidate the venture even though the Company’s partner(s) owns a significant percentage interest. As a result, the presentations of the Company’s share of NOI 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.
Asset information by segment is not reported because the Company does not use this measure to assess performance. Therefore, depreciation and amortization expense is not allocated among segments. Preferred stock/unit redemption charge, preferred dividends/distributions, interest expense, losses from early extinguishment of debt, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts, corporate general and administrative expense, gains (losses) from investments in securities, other income - assignment fee, interest and other income (loss), gains on sales of real estate, income (loss) from unconsolidated joint ventures, direct reimbursements of payroll and related costs from management services contracts and development and management services revenue are not included in NOI and are provided as reconciling items to the Company’s reconciliations of its share of NOI to net income attributable to common shareholders/unitholders.
The Company’s segments are based on the Company’s method of internal reporting which classifies its operations by geographic area. The Company’s segments by geographic area are Boston, Los Angeles, New York, San Francisco, Seattle and Washington, DC. On September 1, 2021, the Company invested in a joint venture that acquired Safeco Plaza located in Seattle, Washington. As such, the Seattle region was identified as a segment during the third quarter of 2021. The Company also presents information for each segment by property type, including Office, Residential and Hotel.
Parking and other revenue for the three months ended June 30, 2022 increased by approximately $12.1 million compared to the three months ended June 30, 2021. Parking and other revenue for the six months
ended June 30, 2022 increased by approximately $16.9 million compared to 2021. These increases were primarily in transient and monthly parking revenue.
Information by geographic area and property type (dollars in thousands):
For the three months ended June 30, 2022:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Office$244,936 $— $254,264 $133,707 $6,472 $95,954 $735,333 
Residential3,748 — — 5,850 — 7,314 16,912 
Hotel12,089 — — — — — 12,089 
Total260,773 — 254,264 139,557 6,472 103,268 764,334 
% of Grand Totals34.11 %— %33.27 %18.26 %0.85 %13.51 %100.00 %
Rental Expenses:
Office87,027 — 95,363 45,201 1,680 34,759 264,030 
Residential1,492 — — 5,145 — 3,181 9,818 
Hotel6,444 — — — — — 6,444 
Total94,963 — 95,363 50,346 1,680 37,940 280,292 
% of Grand Totals33.88 %— %34.02 %17.96 %0.60 %13.54 %100.00 %
Net operating income$165,810 $— $158,901 $89,211 $4,792 $65,328 $484,042 
% of Grand Totals34.25 %— %32.83 %18.43 %0.99 %13.50 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(11,377)— (36,485)— — — (47,862)
Add: Company’s share of net operating income from unconsolidated joint ventures8,134 13,247 18 3,183 1,944 9,184 35,710 
Company’s share of net operating income$162,567 $13,247 $122,434 $92,394 $6,736 $74,512 $471,890 
% of Grand Totals34.44 %2.81 %25.95 %19.58 %1.43 %15.79 %100.00 %
  _______________
(1)Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations.
For the three months ended June 30, 2021:
BostonLos AngelesNew YorkSan FranciscoWashington, DCTotal
Rental Revenue: (1)
Office$229,571 $— $252,182 $126,181 $84,610 $692,544 
Residential3,131 — — 690 5,942 9,763 
Hotel1,561 — — — — 1,561 
Total234,263 — 252,182 126,871 90,552 703,868 
% of Grand Totals33.28 %— %35.84 %18.02 %12.86 %100.00 %
Rental Expenses:
Office78,165 — 92,662 40,954 30,994 242,775 
Residential1,435 — — 1,544 2,949 5,928 
Hotel1,996 — — — — 1,996 
Total81,596 — 92,662 42,498 33,943 250,699 
% of Grand Totals32.55 %— %36.96 %16.95 %13.54 %100.00 %
Net operating income$152,667 $— $159,520 $84,373 $56,609 $453,169 
% of Grand Totals33.69 %— %35.20 %18.62 %12.49 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(10,576)— (35,711)— — (46,287)
Add: Company’s share of net operating income from unconsolidated joint ventures3,624 12,265 172 3,580 5,776 25,417 
Company’s share of net operating income$145,715 $12,265 $123,981 $87,953 $62,385 $432,299 
% of Grand Totals33.70 %2.84 %28.68 %20.35 %14.43 %100.00 %
  _______________
(1)Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations.
Information by geographic area and property type (dollars in thousands):
For the six months ended June 30, 2022:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Office$487,014 $— $511,134 $266,082 $6,472 $191,519 $1,462,221 
Residential7,344 — — 8,241 — 14,293 29,878 
Hotel16,646 — — — — — 16,646 
Total511,004 — 511,134 274,323 6,472 205,812 1,508,745 
% of Grand Totals33.87 %— %33.88 %18.18 %0.43 %13.64 %100.00 %
Rental Expenses:
Office177,555 — 191,703 88,609 1,680 68,306 527,853 
Residential2,929 — — 7,013 — 6,308 16,250 
Hotel11,284 — — — — — 11,284 
Total191,768 — 191,703 95,622 1,680 74,614 555,387 
% of Grand Totals34.53 %— %34.52 %17.22 %0.30 %13.43 %100.00 %
Net operating income$319,236 $— $319,431 $178,701 $4,792 $131,198 $953,358 
% of Grand Totals33.49 %— %33.51 %18.74 %0.50 %13.76 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(23,112)— (71,805)— — — (94,917)
Add: Company’s share of net operating income (loss) from unconsolidated joint ventures17,827 27,004 (138)6,364 3,899 18,075 73,031 
Company’s share of net operating income$313,951 $27,004 $247,488 $185,065 $8,691 $149,273 $931,472 
% of Grand Totals33.70 %2.90 %26.57 %19.87 %0.93 %16.03 %100.00 %
  _______________
(1)Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations.
For the six months ended June 30, 2021:
BostonLos AngelesNew YorkSan FranciscoWashington, DCTotal
Rental Revenue: (1)
Office$459,974 $— $502,346 $256,779 $167,025 $1,386,124 
Residential6,176 — — 1,011 11,751 18,938 
Hotel2,193 — — — — 2,193 
Total468,343 — 502,346 257,790 178,776 1,407,255 
% of Grand Totals33.28 %— %35.70 %18.32 %12.70 %100.00 %
Rental Expenses:
Office158,046 — 192,047 81,203 62,741 494,037 
Residential2,890 — — 3,230 5,935 12,055 
Hotel4,047 — — — — 4,047 
Total164,983 — 192,047 84,433 68,676 510,139 
% of Grand Totals32.34 %— %37.65 %16.55 %13.46 %100.00 %
Net operating income$303,360 $— $310,299 $173,357 $110,100 $897,116 
% of Grand Totals33.82 %— %34.59 %19.32 %12.27 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(20,800)— (69,863)— — (90,663)
Add: Company’s share of net operating income (loss) from unconsolidated joint ventures5,905 26,457 (621)7,060 11,411 50,212 
Company’s share of net operating income$288,465 $26,457 $239,815 $180,417 $121,511 $856,665 
% of Grand Totals33.68 %3.09 %27.99 %21.06 %14.18 %100.00 %
  _______________
(1)Rental Revenue is equal to Total Revenue per the Company’s Consolidated Statements of Operations, less Development and Management Services Revenue and Direct Reimbursements of Payroll and Related Costs from Management Services Contracts Revenue per the Consolidated Statements of Operations.