XML 32 R18.htm IDEA: XBRL DOCUMENT
v3.23.1

Segment Information | 3 Months Ended
--- | ---
Mar. 31, 2023
Segment Reporting [Abstract] |
Segment Reporting Disclosure [Text Block] | 10. Segment Information The following tables present reconciliations of Net Income Attributable to Boston Properties, Inc. to the Company’s share of Net Operating Income and Net Income Attributable to Boston Properties Limited Partnership to the Company’s share of Net Operating Income for the three months ended March 31, 2023 and 2022. BXP
|  | Three months ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |  |  |
|  | (in thousands)
Net income attributable to Boston Properties, Inc. |  | $ | 77,890 |  |  | $ | 143,047 |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |
Noncontrolling interest—common units of the Operating Partnership |  | 9,078 |  |  | 16,361 |  |  |  |  |  |  |
Noncontrolling interests in property partnerships |  | 18,660 |  |  | 17,549 |  |  |  |  |  |  |
Interest expense |  | 134,207 |  |  | 101,228 |  |  |  |  |  |  |
Net operating income from unconsolidated joint ventures |  | 40,756 |  |  | 37,321 |  |  |  |  |  |  |
Depreciation and amortization expense |  | 208,734 |  |  | 177,624 |  |  |  |  |  |  |
Transaction costs |  | 911 |  |  | — |  |  |  |  |  |  |
Payroll and related costs from management services contracts |  | 5,235 |  |  | 4,065 |  |  |  |  |  |  |
General and administrative expense |  | 55,802 |  |  | 43,194 |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |
Net operating income attributable to noncontrolling interests in property partnerships |  | 47,097 |  |  | 47,055 |  |  |  |  |  |  |
Unrealized gain on non-real estate investment |  | 259 |  |  | — |  |  |  |  |  |  |
Gains (losses) from investments in securities |  | 1,665 |  |  | (2,262) |  |  |  |  |  |  |
Interest and other income (loss) |  | 10,941 |  |  | 1,228 |  |  |  |  |  |  |
Gains on sales of real estate |  | — |  |  | 22,701 |  |  |  |  |  |  |
Income (loss) from unconsolidated joint ventures |  | (7,569) |  |  | 2,189 |  |  |  |  |  |  |
Direct reimbursements of payroll and related costs from management services contracts |  | 5,235 |  |  | 4,065 |  |  |  |  |  |  |
Development and management services revenue |  | 8,980 |  |  | 5,831 |  |  |  |  |  |  |
Company’s share of Net Operating Income |  | $ | 484,665 |  |  | $ | 459,582 |  |  |  |  |  |  |
BPLP
|  | Three months ended March 31, |  |
|  | 2023 |  | 2022 |  |  |  |  |  |
|  | (in thousands)
Net income attributable to Boston Properties Limited Partnership |  | $ | 88,830 |  |  | $ | 161,829 |  |  |  |  |  |  |
Add: |  |  |  |  |  |  |  |  |  |
Noncontrolling interests in property partnerships |  | 18,660 |  |  | 17,549 |  |  |  |  |  |  |
Interest expense |  | 134,207 |  |  | 101,228 |  |  |  |  |  |  |
Net operating income from unconsolidated joint ventures |  | 40,756 |  |  | 37,321 |  |  |  |  |  |  |
Depreciation and amortization expense |  | 206,872 |  |  | 175,886 |  |  |  |  |  |  |
Transaction costs |  | 911 |  |  | — |  |  |  |  |  |  |
Payroll and related costs from management services contracts |  | 5,235 |  |  | 4,065 |  |  |  |  |  |  |
General and administrative expense |  | 55,802 |  |  | 43,194 |  |  |  |  |  |  |
Less: |  |  |  |  |  |  |  |  |  |
Net operating income attributable to noncontrolling interests in property partnerships |  | 47,097 |  |  | 47,055 |  |  |  |  |  |  |
Unrealized gain on non-real estate investment |  | 259 |  |  | — |  |  |  |  |  |  |
Gains (losses) from investments in securities |  | 1,665 |  |  | (2,262) |  |  |  |  |  |  |
Interest and other income (loss) |  | 10,941 |  |  | 1,228 |  |  |  |  |  |  |
Gains on sales of real estate |  | — |  |  | 23,384 |  |  |  |  |  |  |
Income (loss) from unconsolidated joint ventures |  | (7,569) |  |  | 2,189 |  |  |  |  |  |  |
Direct reimbursements of payroll and related costs from management services contracts |  | 5,235 |  |  | 4,065 |  |  |  |  |  |  |
Development and management services revenue |  | 8,980 |  |  | 5,831 |  |  |  |  |  |  |
Company’s share of Net Operating Income |  | $ | 484,665 |  |  | $ | 459,582 |  |  |  |  |  |  |
Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to Boston Properties, Inc. and net income attributable to Boston Properties Limited Partnership, as applicable, the most directly comparable GAAP financial measures, plus (1) net income attributable to noncontrolling interests, interest expense, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts and corporate general and administrative expense less (2) unrealized gain on non-real estate investment, gains (losses) from investments in securities, 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. and net income attributable to Boston Properties Limited Partnership. 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, as defined above, also does not include its share of losses from early extinguishment of debt from unconsolidated joint ventures and unrealized loss on derivative instruments, 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. Interest expense, depreciation and amortization expense, transaction costs, payroll and related costs from management services contracts, corporate general and administrative expense, unrealized gain on non-real estate investment, gains (losses) from investments in securities, 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. 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. The Company also presents information for each segment by property type, including Premier Workplace (which includes office, life sciences and retail), Residential and Hotel. Information by geographic area and property type (dollars in thousands): For the three months ended March 31, 2023:
| Boston |  | Los Angeles |  | New York |  | San Francisco |  | Seattle |  | Washington, DC |  | Total
Rental Revenue: (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Premier Workplace | $ | 269,951 |  |  | $ | — |  |  | $ | 258,192 |  |  | $ | 136,093 |  |  | $ | 14,258 |  |  | $ | 90,664 |  |  | $ | 769,158 |
Residential | 4,049 |  |  | — |  |  | — |  |  | 3,642 |  |  | — |  |  | 4,035 |  |  | 11,726 |
Hotel | 8,101 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 8,101 |
Total | 282,101 |  |  | — |  |  | 258,192 |  |  | 139,735 |  |  | 14,258 |  |  | 94,699 |  |  | 788,985 |
% of Grand Totals | 35.76 | % |  | — | % |  | 32.72 | % |  | 17.71 | % |  | 1.81 | % |  | 12.00 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Premier Workplace | 100,049 |  |  | — |  |  | 102,485 |  |  | 46,085 |  |  | 2,960 |  |  | 34,266 |  |  | 285,845 |
Residential | 1,552 |  |  | — |  |  | — |  |  | 2,173 |  |  | — |  |  | 1,738 |  |  | 5,463 |
Hotel | 6,671 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,671 |
Total | 108,272 |  |  | — |  |  | 102,485 |  |  | 48,258 |  |  | 2,960 |  |  | 36,004 |  |  | 297,979 |
% of Grand Totals | 36.34 | % |  | — | % |  | 34.39 | % |  | 16.20 | % |  | 0.99 | % |  | 12.08 | % |  | 100.00 | %
Net operating income | $ | 173,829 |  |  | $ | — |  |  | $ | 155,707 |  |  | $ | 91,477 |  |  | $ | 11,298 |  |  | $ | 58,695 |  |  | $ | 491,006 |
% of Grand Totals | 35.41 | % |  | — | % |  | 31.71 | % |  | 18.63 | % |  | 2.30 | % |  | 11.95 | % |  | 100.00 | %
Less: Net operating income attributable to noncontrolling interests in property partnerships | (10,817) |  |  | — |  |  | (36,280) |  |  | — |  |  | — |  |  | — |  |  | (47,097) |
Add: Company’s share of net operating income from unconsolidated joint ventures | 8,577 |  |  | 13,225 |  |  | 3,650 |  |  | 3,464 |  |  | 1,846 |  |  | 9,994 |  |  | 40,756 |
Company’s share of net operating income | $ | 171,589 |  |  | $ | 13,225 |  |  | $ | 123,077 |  |  | $ | 94,941 |  |  | $ | 13,144 |  |  | $ | 68,689 |  |  | $ | 484,665 |
% of Grand Totals | 35.41 | % |  | 2.73 | % |  | 25.39 | % |  | 19.59 | % |  | 2.71 | % |  | 14.17 | % |  | 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 March 31, 2022:
| Boston |  | Los Angeles |  | New York |  | San Francisco |  | Seattle |  | Washington, DC |  | Total
Rental Revenue: (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Premier Workplace | $ | 242,078 |  |  | $ | — |  |  | $ | 256,870 |  |  | $ | 132,375 |  |  | $ | — |  |  | $ | 95,565 |  |  | $ | 726,888 |
Residential | 3,596 |  |  | — |  |  | — |  |  | 2,391 |  |  | — |  |  | 6,979 |  |  | 12,966 |
Hotel | 4,557 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,557 |
Total | 250,231 |  |  | — |  |  | 256,870 |  |  | 134,766 |  |  | — |  |  | 102,544 |  |  | 744,411 |
% of Grand Totals | 33.61 | % |  | — | % |  | 34.51 | % |  | 18.10 | % |  | — | % |  | 13.78 | % |  | 100.00 | %
Rental Expenses: |  |  |  |  |  |  |  |  |  |  |  |  |
Premier Workplace | 90,528 |  |  | — |  |  | 96,340 |  |  | 43,408 |  |  | — |  |  | 33,547 |  |  | 263,823 |
Residential | 1,437 |  |  | — |  |  | — |  |  | 1,868 |  |  | — |  |  | 3,127 |  |  | 6,432 |
Hotel | 4,840 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 4,840 |
Total | 96,805 |  |  | — |  |  | 96,340 |  |  | 45,276 |  |  | — |  |  | 36,674 |  |  | 275,095 |
% of Grand Totals | 35.19 | % |  | — | % |  | 35.02 | % |  | 16.46 | % |  | — | % |  | 13.33 | % |  | 100.00 | %
Net operating income | $ | 153,426 |  |  | $ | — |  |  | $ | 160,530 |  |  | $ | 89,490 |  |  | $ | — |  |  | $ | 65,870 |  |  | $ | 469,316 |
% of Grand Totals | 32.69 | % |  | — | % |  | 34.21 | % |  | 19.07 | % |  | — | % |  | 14.03 | % |  | 100.00 | %
Less: Net operating income attributable to noncontrolling interests in property partnerships | (11,735) |  |  | — |  |  | (35,320) |  |  | — |  |  | — |  |  | — |  |  | (47,055) |
Add: Company’s share of net operating income (loss) from unconsolidated joint ventures | 9,693 |  |  | 13,757 |  |  | (156) |  |  | 3,181 |  |  | 1,955 |  |  | 8,891 |  |  | 37,321 |
Company’s share of net operating income | $ | 151,384 |  |  | $ | 13,757 |  |  | $ | 125,054 |  |  | $ | 92,671 |  |  | $ | 1,955 |  |  | $ | 74,761 |  |  | $ | 459,582 |
% of Grand Totals | 32.94 | % |  | 2.99 | % |  | 27.21 | % |  | 20.16 | % |  | 0.43 | % |  | 16.27 | % |  | 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.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration