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Segment Information
 6 Months Ended
Jun. 30, 2024
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
11. Segment Information
The following tables present reconciliations of Net Income Attributable to BXP, 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 and six months ended June 30, 2024 and 2023.
BXP
 Three months ended June 30,Six months ended June 30,
2024202320242023
(in thousands)
Net income attributable to BXP, Inc.$79,615 $104,299 $159,498 $182,215 
Add:
Noncontrolling interest—common units of the Operating Partnership
9,509 12,117 19,009 21,169 
Noncontrolling interests in property partnerships17,825 19,768 35,046 38,428 
Interest expense149,642 142,473 311,533 276,680 
Impairment loss— — 13,615 — 
Net operating income from unconsolidated joint ventures31,587 42,254 67,017 83,010 
Depreciation and amortization expense219,542 202,577 438,258 411,311 
Transaction costs189 308 702 1,219 
Payroll and related costs from management services contracts
4,148 4,609 8,441 9,844 
General and administrative expense44,109 44,175 94,127 99,977 
Less:
Net operating income attributable to noncontrolling interests in property partnerships
47,391 47,958 93,961 95,055 
Unrealized gain on non-real estate investment58 124 454 383 
Gains from investments in securities315 1,571 2,587 3,236 
Interest and other income (loss)10,788 17,343 25,317 28,284 
Income (loss) from unconsolidated joint ventures(5,799)(6,668)13,387 (14,237)
Direct reimbursements of payroll and related costs from management services contracts
4,148 4,609 8,441 9,844 
Development and management services revenue6,352 9,858 12,506 18,838 
Company’s share of Net Operating Income$492,913 $497,785 $990,593 $982,450 
BPLP
 Three months ended June 30,Six months ended June 30,
 2024202320242023
(in thousands)
Net income attributable to Boston Properties Limited Partnership $90,827 $118,098 $181,907 $206,928 
Add:
Noncontrolling interests in property partnerships17,825 19,768 35,046 38,428 
Interest expense149,642 142,473 311,533 276,680 
Impairment loss— — 13,615 — 
Net operating income from unconsolidated joint ventures31,587 42,254 67,017 83,010 
Depreciation and amortization expense217,839 200,895 434,858 407,767 
Transaction costs189 308 702 1,219 
Payroll and related costs from management services contracts
4,148 4,609 8,441 9,844 
General and administrative expense44,109 44,175 94,127 99,977 
Less:
Net operating income attributable to noncontrolling interests in property partnerships
47,391 47,958 93,961 95,055 
Unrealized gain on non-real estate investment58 124 454 383 
Gains from investments in securities315 1,571 2,587 3,236 
Interest and other income (loss)10,788 17,343 25,317 28,284 
Income (loss) from unconsolidated joint ventures(5,799)(6,668)13,387 (14,237)
Direct reimbursements of payroll and related costs from management services contracts
4,148 4,609 8,441 9,844 
Development and management services revenue6,352 9,858 12,506 18,838 
Company’s share of Net Operating Income$492,913 $497,785 $990,593 $982,450 
Net operating income (“NOI”) is a non-GAAP financial measure equal to net income attributable to BXP, 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, impairment loss, 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 from investments in securities, interest and other income (loss), 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 BXP, 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, unrealized gain on derivative instruments and gain on sale / consolidation, all 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, impairment loss, 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 from investments in securities, interest and other income (loss), 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 June 30, 2024:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Premier Workplace$285,352 $18,472 $261,805 $131,709 $10,520 $105,086 $812,944 
Residential4,272 — — 3,318 — 4,636 12,226 
Hotel14,812 — — — — — 14,812 
Total304,436 18,472 261,805 135,027 10,520 109,722 839,982 
% of Grand Totals36.25 %2.20 %31.17 %16.07 %1.25 %13.06 %100.00 %
Rental Expenses:
Premier Workplace108,908 6,767 108,476 48,668 3,290 39,578 315,687 
Residential1,543 — — 2,169 — 2,027 5,739 
Hotel9,839 — — — — — 9,839 
Total120,290 6,767 108,476 50,837 3,290 41,605 331,265 
% of Grand Totals36.31 %2.04 %32.75 %15.35 %0.99 %12.56 %100.00 %
Net operating income$184,146 $11,705 $153,329 $84,190 $7,230 $68,117 $508,717 
% of Grand Totals36.20 %2.30 %30.14 %16.55 %1.42 %13.39 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(10,924)— (36,467)— — — (47,391)
Add: Company’s share of net operating income from unconsolidated joint ventures8,691 7,035 3,158 4,411 1,938 6,354 31,587 
Company’s share of net operating income$181,913 $18,740 $120,020 $88,601 $9,168 $74,471 $492,913 
% of Grand Totals36.91 %3.80 %24.35 %17.97 %1.86 %15.11 %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, 2023:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Premier Workplace$269,464 $— $262,979 $136,241 $17,060 $90,720 $776,464 
Residential4,124 — — 3,864 — 4,265 12,253 
Hotel13,969 — — — — — 13,969 
Total287,557 — 262,979 140,105 17,060 94,985 802,686 
% of Grand Totals35.83 %— %32.76 %17.45 %2.13 %11.83 %100.00 %
Rental Expenses:
Premier Workplace95,597 — 102,948 48,197 3,082 35,429 285,253 
Residential1,601 — — 2,215 — 1,967 5,783 
Hotel8,161 — — — — — 8,161 
Total105,359 — 102,948 50,412 3,082 37,396 299,197 
% of Grand Totals35.21 %— %34.41 %16.85 %1.03 %12.50 %100.00 %
Net operating income$182,198 $— $160,031 $89,693 $13,978 $57,589 $503,489 
% of Grand Totals36.19 %— %31.78 %17.81 %2.78 %11.44 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(11,343)— (36,615)— — — (47,958)
Add: Company’s share of net operating income from unconsolidated joint ventures8,771 12,768 3,363 3,332 1,878 12,142 42,254 
Company’s share of net operating income$179,626 $12,768 $126,779 $93,025 $15,856 $69,731 $497,785 
% of Grand Totals36.08 %2.56 %25.47 %18.69 %3.19 %14.01 %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, 2024:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Premier Workplace$565,818 $38,873 $522,614 $264,323 $21,430 $208,008 $1,621,066 
Residential8,468 — — 7,276 — 9,166 24,910 
Hotel22,998 — — — — — 22,998 
Total597,284 38,873 522,614 271,599 21,430 217,174 1,668,974 
% of Grand Totals35.80 %2.33 %31.31 %16.27 %1.28 %13.01 %100.00 %
Rental Expenses:
Premier Workplace214,079 13,334 215,957 95,610 6,371 78,807 624,158 
Residential3,136 — — 4,387 — 3,902 11,425 
Hotel15,854 — — — — — 15,854 
Total233,069 13,334 215,957 99,997 6,371 82,709 651,437 
% of Grand Totals35.77 %2.05 %33.15 %15.35 %0.98 %12.70 %100.00 %
Net operating income$364,215 $25,539 $306,657 $171,602 $15,059 $134,465 $1,017,537 
% of Grand Totals35.80 %2.51 %30.14 %16.86 %1.48 %13.21 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(21,980)— (71,981)— — — (93,961)
Add: Company’s share of net operating income from unconsolidated joint ventures17,448 14,283 9,142 9,565 3,814 12,765 67,017 
Company’s share of net operating income$359,683 $39,822 $243,818 $181,167 $18,873 $147,230 $990,593 
% of Grand Totals36.31 %4.02 %24.61 %18.29 %1.91 %14.86 %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, 2023:
BostonLos AngelesNew YorkSan FranciscoSeattleWashington, DCTotal
Rental Revenue: (1)
Premier Workplace$539,415 $— $521,171 $272,334 $31,318 $181,384 $1,545,622 
Residential8,173 — — 7,506 — 8,300 23,979 
Hotel22,070 — — — — — 22,070 
Total569,658 — 521,171 279,840 31,318 189,684 1,591,671 
% of Grand Totals35.79 %— %32.74 %17.58 %1.97 %11.92 %100.00 %
Rental Expenses:
Premier Workplace195,646 — 205,433 94,282 6,042 69,695 571,098 
Residential3,153 — — 4,388 — 3,705 11,246 
Hotel14,832 — — — — — 14,832 
Total213,631 — 205,433 98,670 6,042 73,400 597,176 
% of Grand Totals35.78 %— %34.40 %16.52 %1.01 %12.29 %100.00 %
Net operating income$356,027 $— $315,738 $181,170 $25,276 $116,284 $994,495 
% of Grand Totals35.80 %— %31.75 %18.22 %2.54 %11.69 %100.00 %
Less: Net operating income attributable to noncontrolling interests in property partnerships(22,160)— (72,895)— — — (95,055)
Add: Company’s share of net operating income from unconsolidated joint ventures17,348 25,993 7,013 6,796 3,724 22,136 83,010 
Company’s share of net operating income$351,215 $25,993 $249,856 $187,966 $29,000 $138,420 $982,450 
% of Grand Totals35.75 %2.65 %25.43 %19.13 %2.95 %14.09 %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.